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HF 846

4th Engrossment - 89th Legislature (2015 - 2016) Posted on 06/02/2016 11:53am

KEY: stricken = removed, old language. underscored = added, new language.

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Bill Text Versions

Engrossments
Introduction Pdf Posted on 02/12/2015
1st Engrossment Pdf Posted on 04/17/2015
2nd Engrossment Pdf Posted on 04/21/2015
3rd Engrossment Pdf Posted on 04/24/2015
4th Engrossment Pdf Posted on 06/03/2015
Conference Committee Reports
LS89-CCR-HF0846A Pdf Posted on 05/18/2015

Current Version - 4th Engrossment

A bill for an act
relating to state government; appropriating money for agriculture, environment,
and natural resources; modifying public entity purchasing requirements;
modifying solid waste provisions; modifying subsurface sewage treatment
systems provisions; modifying Dry Cleaner Environmental Response and
Reimbursement Law; modifying environmental review; modifying structure
of Minnesota Pollution Control Agency; modifying disposition of certain
revenue; providing for temporary water surface use controls; providing for
riparian buffers; providing for self-reporting of certain environmental violations;
modifying compensable losses due to harmful substances; modifying invasive
species provisions; modifying landowners' bill of rights; modifying state parks
and trails provisions; modifying recreational vehicle provisions; modifying
land sale and acquisition provisions; modifying forestry and timber provisions;
modifying regulation of camper cabins and bunk houses; providing for all-terrain
vehicle safety training indication on drivers' licenses and identification cards;
creating accounts; modifying certain grant, permit, and fee provisions; modifying
Water Law; modifying personal flotation device provisions; regulating wake
surfing; modifying game and fish laws; modifying metropolitan area water supply
planning provisions; regulating water quality standards; making policy and
technical changes to various agricultural related provisions, including provisions
related to pesticides, plant protection, fertilizers, nursery law, seeds, dairy, food
handlers, food, farmland, farming, and loans; authorizing the Industrial Hemp
Development Act; modifying license exclusions for the direct sale of certain
prepared food; establishing the agriculture research, education, extension, and
technology transfer grant program; providing incentive payments; providing
a vocational training pilot program; establishing the farm opportunity loan
program; requiring studies and reports; requiring rulemaking; providing criminal
penalties;amending Minnesota Statutes 2014, sections 3.737, by adding a
subdivision; 13.643, subdivision 1; 16C.073, subdivision 2; 18B.01, subdivisions
28, 29; 18B.05, subdivision 1; 18B.32, subdivision 1; 18B.33, subdivision 1;
18B.34, subdivision 1; 18C.425, subdivision 6; 18C.70, subdivision 2; 18G.10,
subdivisions 3, 4, 5; 18H.02, subdivision 20, by adding subdivisions; 18H.06,
subdivision 2; 18H.07; 18H.17; 18J.01; 18J.02; 18J.03; 18J.04, subdivisions
1, 2, 3, 4; 18J.05, subdivisions 1, 2, 6; 18J.06; 18J.07, subdivisions 3, 4, 5;
18J.09; 18J.11, subdivision 1, by adding a subdivision; 21.89, subdivision
2; 21.891, subdivisions 2, 5; 25.341, subdivision 2; 25.39, subdivisions 1,
1a; 32.075; 32.105; 41B.03, subdivision 6, by adding a subdivision; 41B.04,
subdivision 17; 41B.043, subdivision 3; 41B.045, subdivisions 3, 4; 41B.046,
subdivision 5; 41B.047, subdivisions 1, 3, 4; 41B.048, subdivision 6; 41B.049,
subdivision 4; 41B.055, subdivision 3; 41B.056, subdivision 2; 41B.06; 84.027,
subdivision 13a; 84.0274, subdivisions 3, 5; 84.415, subdivision 7; 84.788,
subdivision 5, by adding a subdivision; 84.82, subdivisions 2a, 6; 84.84; 84.92,
subdivisions 8, 9, 10; 84.922, subdivision 4; 84.925, subdivision 5; 84.9256,
subdivision 1; 84.928, subdivision 1; 84D.01, subdivisions 13, 15, 17, 18, by
adding a subdivision; 84D.03, subdivision 3; 84D.06; 84D.10, subdivision
3; 84D.11, subdivision 1; 84D.12, subdivisions 1, 3; 84D.13, subdivision 5;
84D.15, subdivision 3; 85.015, subdivisions 7, 28, by adding subdivisions;
85.054, subdivision 12; 85.32, subdivision 1; 86B.201, by adding a subdivision;
86B.313, subdivisions 1, 4; 86B.315; 86B.401, subdivision 3; 87A.10; 88.17,
subdivision 3; 88.49, subdivisions 3, 4, 5, 6, 7, 8, 9, 11; 88.491, subdivision 2;
88.50; 88.51, subdivisions 1, 3; 88.52, subdivisions 2, 3, 4, 5, 6; 88.523; 88.53,
subdivisions 1, 2; 88.6435, subdivision 4; 90.14; 90.193; 94.10, subdivision 2;
94.16, subdivisions 2, 3; 97A.015, subdivision 49; 97A.045, subdivision 11;
97A.055, subdivision 4b; 97A.057, subdivision 1; 97A.211, subdivisions 1,
2; 97A.255, subdivision 4; 97A.411, subdivision 3; 97A.435, subdivision 4;
97A.465, by adding a subdivision; 97B.041; 97B.063; 97B.081, subdivision 3;
97B.085, subdivision 2; 97B.301, by adding a subdivision; 97B.668; 97C.301,
by adding a subdivision; 97C.345, by adding a subdivision; 97C.501, subdivision
2; 103B.101, by adding subdivisions; 103B.3355; 103D.335, subdivision 21;
103F.421, subdivision 4, by adding a subdivision; 103F.612, subdivision 2;
103G.005, by adding a subdivision; 103G.222, subdivisions 1, 3; 103G.2242,
subdivisions 1, 2, 3, 4, 12, 14; 103G.2251; 103G.245, subdivision 2; 103G.271,
subdivisions 3, 5, 6a; 103G.287, subdivision 1; 103G.291, subdivision 3;
103G.301, subdivision 5a; 115.44, by adding a subdivision; 115.55, subdivision
1; 115.56, subdivision 2; 115A.03, subdivisions 25a, 32a; 115A.1314,
subdivision 1; 115A.1415, subdivision 16; 115A.551, subdivision 2a; 115A.557,
subdivision 2; 115A.93, subdivision 1; 115B.34, subdivision 2; 115B.48, by
adding a subdivision; 116.02, subdivisions 1, 5; 116.03, subdivisions 1, 2a;
116.07, subdivisions 4d, 4j, 7, by adding a subdivision; 116C.991; 116D.04,
by adding a subdivision; 127A.353, subdivision 1; 135A.52, by adding a
subdivision; 144.12, by adding a subdivision; 171.07, by adding a subdivision;
282.011, subdivision 3; 375.30, subdivision 2; 446A.073, subdivisions 1, 3,
4; 473.1565; 500.24, subdivision 4; 583.215; Laws 2010, chapter 215, article
3, section 5, subdivision 4; Laws 2014, chapter 312, article 12, sections 3; 6,
subdivision 5; proposing coding for new law in Minnesota Statutes, chapters
18C; 28A; 41A; 41B; 84; 84D; 85; 92; 97A; 97B; 103B; 103F; 103G; 114C;
115; 115A; proposing coding for new law as Minnesota Statutes, chapter 18K;
repealing Minnesota Statutes 2014, sections 17.115; 28A.15, subdivisions 9, 10;
84.68; 86B.13, subdivisions 2, 4; 88.47; 88.48; 88.49, subdivisions 1, 2, 10;
88.491, subdivision 1; 88.51, subdivision 2; 97A.475, subdivision 25; 103F.421,
subdivision 5; 103F.451; 114D.50, subdivision 4a; 116.02, subdivisions 2, 3, 4,
6, 7, 8, 9, 10; 116V.03; 282.013; Laws 2010, chapter 215, article 3, section 3,
subdivision 6, as amended; Minnesota Rules, part 6264.0400, subparts 27, 28.

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

ARTICLE 1

AGRICULTURE APPROPRIATIONS

Section 1. AGRICULTURE APPROPRIATIONS

The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2016" and "2017" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2016, or
June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal
year 2017. "The biennium" is fiscal years 2016 and 2017.

APPROPRIATIONS
Available for the Year
Ending June 30
2016
2017

Sec. 2. DEPARTMENT OF AGRICULTURE

Subdivision 1.

Total Appropriation

$
41,510,000
$
45,512,000
Appropriations by Fund
2016
2017
General
40,932,000
44,934,000
Remediation
388,000
388,000
Agricultural
190,000
190,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.

Protection Services

16,452,000
16,402,000
Appropriations by Fund
2016
2017
General
15,874,000
15,824,000
Agricultural
190,000
190,000
Remediation
388,000
388,000

$25,000 the first year and $25,000 the second
year are to develop and maintain cottage
food license exemption outreach and training
materials.

$75,000 the first year is for the commissioner,
in consultation with the Northeast Regional
Corrections Center and the United Food
and Commercial Workers, to study and
provide recommendations for upgrading the
existing processing facility on the campus of
the Northeast Regional Corrections Center
into a USDA-certified food processing
facility. The commissioner shall report these
recommendations to the chairs of the house
of representatives and senate committees
with jurisdiction over agriculture finance by
March 15, 2016.

$75,000 the second year is for a coordinator
for the correctional facility vocational
training pilot program.

$388,000 the first year and $388,000 the
second year are from the remediation fund
for administrative funding for the voluntary
cleanup program.

$225,000 the first year and $175,000
the second year are for compensation
for destroyed or crippled animals under
Minnesota Statutes, section 3.737. This
appropriation may be spent to compensate
for animals that were destroyed or crippled
during fiscal years 2014 and 2015. If the
amount in the first year is insufficient, the
amount in the second year is available in the
first year.

$125,000 the first year and $125,000 the
second year are for compensation for crop
damage under Minnesota Statutes, section
3.7371. If the amount in the first year is
insufficient, the amount in the second year is
available in the first year.

If the commissioner determines that claims
made under Minnesota Statutes, section
3.737 or 3.7371, are unusually high, amounts
appropriated for either program may be
transferred to the appropriation for the other
program.

$70,000 the first year and $70,000 the second
year are for additional cannery inspections.

$100,000 the first year and $100,000 the
second year are for increased oversight of
delegated local health boards.

$100,000 the first year and $100,000 the
second year are to decrease the turnaround
time for retail food handler plan reviews.

$1,024,000 the first year and $1,024,000 the
second year are to streamline the retail food
safety regulatory and licensing experience
for regulated businesses and to decrease the
inspection delinquency rate.

$1,350,000 the first year and $1,350,000 the
second year are for additional inspections of
food manufacturers and wholesalers.

$150,000 the first year and $150,000 the
second year are for additional funding for
dairy inspection services.

$150,000 the first year and $150,000 the
second year are for additional funding for
laboratory services operations.

$250,000 the first year and $250,000
the second year are for additional meat
inspection services, including inspections
provided under the correctional facility
vocational training pilot program.

Notwithstanding Minnesota Statutes, section
18B.05, $90,000 the first year and $90,000
the second year are from the pesticide
regulatory account in the agricultural fund
for an increase in the operating budget for
the Laboratory Services Division.

$100,000 the first year and $100,000 the
second year are from the pesticide regulatory
account in the agricultural fund to update
and modify applicator education and training
materials.

Subd. 3.

Agricultural Marketing and
Development

3,973,000
3,873,000

The commissioner may provide one-stop
access for farmers in need of information or
assistance to obtain or renew licenses, meet
state regulatory requirements, or resolve
disputes with state agencies.

The commissioner must provide outreach
to urban farmers regarding the department's
financial and technical assistance programs
and must assist urban farmers in applying for
assistance.

$100,000 the first year is to (1) enhance the
commissioner's efforts to identify existing
and emerging opportunities for Minnesota's
agricultural producers and processors to
export their products to Cuba, consistent with
federal law, and (2) effectively communicate
these opportunities to the producers and
processors.

$186,000 the first year and $186,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants
for Minnesota grown promotion under
Minnesota Statutes, section 17.102. Grants
may be made for one year. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract
on or before June 30, 2017, for Minnesota
grown grants in this paragraph are available
until June 30, 2019.

$634,000 the first year and $634,000 the
second year are for continuation of the dairy
development and profitability enhancement
and dairy business planning grant programs
established under Laws 1997, chapter
216, section 7, subdivision 2, and Laws
2001, First Special Session chapter 2,
section 9, subdivision 2. The commissioner
may allocate the available sums among
permissible activities, including efforts to
improve the quality of milk produced in the
state, in the proportions that the commissioner
deems most beneficial to Minnesota's dairy
farmers. The commissioner must submit
a detailed accomplishment report and
a work plan detailing future plans for,
and anticipated accomplishments from,
expenditures under this program to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture policy and finance on or before
the start of each fiscal year. If significant
changes are made to the plans in the course
of the year, the commissioner must notify the
chairs and ranking minority members.

The commissioner may use funds
appropriated in this subdivision for annual
cost-share payments to resident farmers
or entities that sell, process, or package
agricultural products in this state for the costs
of organic certification. The commissioner
may allocate these funds for assistance for
persons transitioning from conventional to
organic agriculture.

Subd. 4.

Agriculture, Bioenergy, and
Bioproduct Advancement

15,018,000
18,985,000

$4,483,000 the first year and $8,500,000 the
second year are for transfer to the agriculture
research, education, extension, and
technology transfer account under Minnesota
Statutes, section 41A.14, subdivision 3. The
transfer in this paragraph includes money for
plant breeders at the University of Minnesota
for wild rice, potatoes, and grapes. Of these
amounts, at least $600,000 each year is for
agriculture rapid response under Minnesota
Statutes, section 41A.14, subdivision 1,
clause (2). Of the amount appropriated in
this paragraph, $1,000,000 each year is
for transfer to the Board of Regents of the
University of Minnesota for research to
determine (1) what is causing avian influenza,
(2) why some fowl are more susceptible,
and (3) prevention measures that can be
taken. Of the amount appropriated in this
paragraph, $2,000,000 each year is for grants
to the Minnesota Agriculture Education
Leadership Council to enhance agricultural
education with priority given to Farm
Business Management challenge grants.

To the extent practicable, funds expended
under Minnesota Statutes, section 41A.14,
subdivision 1, clauses (1) and (2), must
supplement and not supplant existing sources
and levels of funding.

$10,235,000 the first year and $10,235,000
the second year are for the agricultural
growth, research, and innovation program
in Minnesota Statutes, section 41A.12. No
later than February 1, 2016, and February
1, 2017, the commissioner must report to
the legislative committees with jurisdiction
over agriculture policy and finance regarding
the commissioner's accomplishments
and anticipated accomplishments in
the following areas: facilitating the
start-up, modernization, or expansion of
livestock operations including beginning
and transitioning livestock operations;
developing new markets for Minnesota
farmers by providing more fruits, vegetables,
meat, grain, and dairy for Minnesota school
children; assisting value-added agricultural
businesses to begin or expand, access new
markets, or diversify products; developing
urban agriculture; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms including
loans under Minnesota Statutes, section
41B.056; sustainable agriculture on farm
research and demonstration; development or
expansion of food hubs and other alternative
community-based food distribution systems;
and research on bioenergy, biobased content,
or biobased formulated products and other
renewable energy development. The
commissioner may use up to 4.5 percent
of this appropriation for costs incurred to
administer the program. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered
under contract on or before June 30, 2017, for
agricultural growth, research, and innovation
grants are available until June 30, 2019.

The commissioner may use funds
appropriated for the agricultural growth,
research, and innovation program as provided
in this paragraph. The commissioner may
award grants to owners of Minnesota
facilities producing bioenergy, biobased
content, or a biobased formulated product;
to organizations that provide for on-station,
on-farm field scale research and outreach to
develop and test the agronomic and economic
requirements of diverse strands of prairie
plants and other perennials for bioenergy
systems; or to certain nongovernmental
entities. For the purposes of this paragraph,
"bioenergy" includes transportation fuels
derived from cellulosic material, as well as
the generation of energy for commercial heat,
industrial process heat, or electrical power
from cellulosic materials via gasification or
other processes. Grants are limited to 50
percent of the cost of research, technical
assistance, or equipment related to bioenergy,
biobased content, or biobased formulated
product production or $500,000, whichever
is less. Grants to nongovernmental entities
for the development of business plans and
structures related to community ownership
of eligible bioenergy facilities together may
not exceed $150,000. The commissioner
shall make a good-faith effort to select
projects that have merit and, when taken
together, represent a variety of bioenergy
technologies, biomass feedstocks, and
geographic regions of the state. Projects
must have a qualified engineer provide
certification on the technology and fuel
source. Grantees must provide reports at the
request of the commissioner.

Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $1,000,000 the
first year and $1,000,000 the second year
are for distribution in equal amounts to each
of the state's county fairs to preserve and
promote Minnesota agriculture.

Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $500,000 in
fiscal year 2016 and $1,500,000 in fiscal
year 2017 are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, and 41A.18. If the appropriation
exceeds the total amount for which all
producers are eligible in a fiscal year, the
balance of the appropriation is available
to the commissioner for the agricultural
growth, research, and innovation program.
Notwithstanding Minnesota Statutes,
section 16A.28, the first year appropriation
is available until June 30, 2017, and the
second year appropriation is available until
June 30, 2018. The commissioner may use
up to 4.5 percent of the appropriation for
administration of the incentive payment
programs.

Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $250,000 the first
year is for grants to communities to develop
or expand food hubs and other alternative
community-based food distribution
systems. Of this amount, $50,000 is for
the commissioner to consult with existing
food hubs, alternative community-based
food distribution systems, and University
of Minnesota Extension to identify best
practices for use by other Minnesota
communities. No later than December 15,
2015, the commissioner must report to the
legislative committees with jurisdiction over
agriculture and health regarding the status of
emerging alternative community-based food
distribution systems in the state along with
recommendations to eliminate any barriers to
success. This is a onetime appropriation.

$250,000 the first year and $250,000 the
second year are for grants that enable
retail petroleum dispensers to dispense
biofuels to the public in accordance with the
biofuel replacement goals established under
Minnesota Statutes, section 239.7911. A
retail petroleum dispenser selling petroleum
for use in spark ignition engines for vehicle
model years after 2000 is eligible for grant
money under this paragraph if the retail
petroleum dispenser has no more than 15
retail petroleum dispensing sites and each
site is located in Minnesota. The grant
money received under this paragraph must
be used for the installation of appropriate
technology that uses fuel dispensing
equipment appropriate for at least one fuel
dispensing site to dispense gasoline that is
blended with 15 percent of agriculturally
derived, denatured ethanol, by volume, and
appropriate technical assistance related to
the installation. A grant award must not
exceed 85 percent of the cost of the technical
assistance and appropriate technology,
including remetering of and retrofits for
retail petroleum dispensers and replacement
of petroleum dispenser projects. The
commissioner may use up to $35,000 of this
appropriation for administrative expenses.
The commissioner shall cooperate with
biofuel stakeholders in the implementation
of the grant program. The commissioner
must report to the legislative committees
with jurisdiction over agriculture policy and
finance by February 1 each year, detailing
the number of grants awarded under this
paragraph and the projected effect of the grant
program on meeting the biofuel replacement
goals under Minnesota Statutes, section
239.7911. These are onetime appropriations.

$25,000 the first year and $25,000 the second
year are for grants to the Southern Minnesota
Initiative Foundation to promote local foods
through an annual event that raises public
awareness of local foods and connects local
food producers and processors with potential
buyers.

Subd. 5.

Administration and Financial
Assistance

6,067,000
6,252,000

$150,000 the first year and $150,000 the
second year are for grants to the Center for
Rural Policy and Development.

The base for the farm-to-foodshelf program
in fiscal years 2018 and 2019 is $1,100,000
each year.

$25,000 the first year is for the livestock
industry study.

$47,000 the first year and $47,000 the second
year are for the Northern Crops Institute.
These appropriations may be spent to
purchase equipment.

$18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Livestock Breeders Association.

$235,000 the first year and $235,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.

$474,000 the first year and $474,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1. Aid payments to county and
district agricultural societies and associations
shall be disbursed no later than July 15 of
each year. These payments are the amount of
aid from the state for an annual fair held in
the previous calendar year.

$1,000 the first year and $1,000 the second
year are for grants to the Minnesota State
Poultry Association.

$108,000 the first year and $108,000 the
second year are for annual grants to the
Minnesota Turf Seed Council for basic
and applied research on: (1) the improved
production of forage and turf seed related to
new and improved varieties; and (2) native
plants, including plant breeding, nutrient
management, pest management, disease
management, yield, and viability. The grant
recipient may subcontract with a qualified
third party for some or all of the basic or
applied research.

$550,000 the first year and $550,000 the
second year are for grants to Second Harvest
Heartland on behalf of Minnesota's six
Second Harvest food banks for the purchase
of milk for distribution to Minnesota's food
shelves and other charitable organizations
that are eligible to receive food from the food
banks. Milk purchased under the grants must
be acquired from Minnesota milk processors
and based on low-cost bids. The milk must be
allocated to each Second Harvest food bank
serving Minnesota according to the formula
used in the distribution of United States
Department of Agriculture commodities
under The Emergency Food Assistance
Program (TEFAP). Second Harvest
Heartland must submit quarterly reports
to the commissioner on forms prescribed
by the commissioner. The reports must
include, but are not limited to, information
on the expenditure of funds, the amount
of milk purchased, and the organizations
to which the milk was distributed. Second
Harvest Heartland may enter into contracts
or agreements with food banks for shared
funding or reimbursement of the direct
purchase of milk. Each food bank receiving
money from this appropriation may use up to
two percent of the grant for administrative
expenses.

$113,000 the first year and $113,000 the
second year are for transfer to the Board of
Trustees of the Minnesota State Colleges
and Universities for statewide mental health
counseling support to farm families and
business operators. South Central College
shall serve as the fiscal agent.

$17,000 the first year and $17,000 the
second year are for grants to the Minnesota
Horticultural Society.

Sec. 3. BOARD OF ANIMAL HEALTH

$
5,318,000
$
5,384,000

Sec. 4. AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE

$
3,643,000
$
3,643,000

Sec. 5. AVIAN INFLUENZA RESPONSE ACTIVITIES; APPROPRIATIONS.

(a) $3,619,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of agriculture for avian influenza emergency response activities. The
commissioner may use money appropriated under this paragraph to purchase necessary
euthanasia and composting equipment and to reimburse costs incurred by local units of
government directly related to avian influenza emergency response activities that are not
eligible for federal reimbursement. This appropriation is available the day following final
enactment until June 30, 2017.

(b) $1,853,000 is appropriated from the general fund in fiscal year 2016 to the
Board of Animal Health for avian influenza emergency response activities. The Board
may use money appropriated under this paragraph to purchase necessary euthanasia and
composting equipment. This appropriation is available the day following final enactment
until June 30, 2017.

(c) $103,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of health for avian influenza emergency response activities. This
appropriation is available the day following final enactment until June 30, 2017.

(d) $350,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of natural resources for sampling wild animals to detect and monitor the
avian influenza virus. This appropriation may also be used to conduct serology sampling,
in consultation with the Board of Animal Health and the University of Minnesota Pomeroy
Chair in Avian Health, from birds within a control zone and outside of a control zone.
This appropriation is available the day following final enactment until June 30, 2017.

(e) $544,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of public safety to operate the State Emergency Operation Center in
coordination with the statewide avian influenza response activities. Appropriations
under this paragraph may also be used to support a staff person at the state's agricultural
incident command post in Willmar. This appropriation is available the day following final
enactment until June 30, 2017.

(f) The commissioner of management and budget may transfer unexpended balances
from the appropriations in this section to any state agency for operating expenses related
to avian influenza emergency response activities. The commissioner of management and
budget must report each transfer to the chairs and ranking minority members of the senate
Committee on Finance and the house of representatives Committee on Ways and Means.

Sec. 6. RURAL FINANCE AUTHORITY; APPROPRIATION.

$10,000,000 is appropriated in fiscal year 2016 from the general fund to the
commissioner of agriculture for transfer to the rural finance authority revolving loan
account under Minnesota Statutes, section 41B.06, for the purposes of disaster recovery
loans under Minnesota Statutes, section 41B.047. This appropriation is available the day
following final enactment until June 30, 2017.

Sec. 7. AVIAN INFLUENZA; FEDERAL FUNDS APPROPRIATION AND
REPORTING.

All federal money received in fiscal years 2015 through 2017 by the Board of Animal
Health or the commissioner of agriculture, health, natural resources, or public safety to
address avian influenza is appropriated in the fiscal year when it is received. Before
spending federal funds appropriated in this section, the commissioner of management and
budget shall report the anticipated federal funds appropriated under this section and their
intended purpose to the Legislative Advisory Commission, consistent with the urgent
federal funds request procedure under Minnesota Statutes, section 3.3005, subdivision
4. By January 15, 2018, the commissioner of management and budget shall report the
actual federal funds received and appropriated under this section and their actual use
to the Legislative Advisory Commission.

Sec. 8. EFFECTIVE DATE.

Sections 5 to 7 are effective the day following final enactment.

ARTICLE 2

AGRICULTURE POLICY

Section 1.

Minnesota Statutes 2014, section 3.737, is amended by adding a subdivision
to read:


Subd. 6.

Federal reimbursement.

The commissioner must pursue federal
reimbursement for any compensation payment issued under this section while:

(1) the United States Fish and Wildlife Service lists the Minnesota population of gray
wolves as endangered and threatened wildlife under the federal Endangered Species Act; or

(2) the federal government otherwise prohibits livestock producers from protecting
their livestock from wolf depredation.

Sec. 2.

Minnesota Statutes 2014, section 13.643, subdivision 1, is amended to read:


Subdivision 1.

Department of Agriculture data.

(a) Loan and grant applicant
data.
The following data on applicants, collected by the Department of Agriculture in its
sustainable agriculture revolving loan and grant programs program under sections 17.115
and
section 17.116, are private or nonpublic: nonfarm income; credit history; insurance
coverage; machinery and equipment list; financial information; and credit information
requests.

(b) Farm advocate data. The following data supplied by farmer clients to
Minnesota farm advocates and to the Department of Agriculture are private data on
individuals: financial history, including listings of assets and debts, and personal and
emotional status information.

Sec. 3.

Minnesota Statutes 2014, section 18B.01, subdivision 28, is amended to read:


Subd. 28.

Structural pest.

"Structural pest" means a an invertebrate pest, other
than a plant,
or commensal rodent in, on, under, or near a structure such as a residential
or commercial building
.

Sec. 4.

Minnesota Statutes 2014, section 18B.01, subdivision 29, is amended to read:


Subd. 29.

Structural pest control.

"Structural pest control" means the control of
any structural pest through the use of a device, a procedure, or application of pesticides or
through other means
in or around a building or other structures, including trucks, boxcars,
ships, aircraft, docks, and fumigation vaults, and the business activity related to use of a
device, a procedure, or application of a pesticide
.

Sec. 5.

Minnesota Statutes 2014, section 18B.05, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

A pesticide regulatory account is established in the
agricultural fund. Fees, assessments, and penalties collected under this chapter must
be deposited in the agricultural fund and credited to the pesticide regulatory account.
Money in the account, including interest, is appropriated to the commissioner for the
administration and enforcement of this chapter and up to $20,000 per fiscal year may also
be used by the commissioner for purposes of section 18H.14, paragraph (e)
.

Sec. 6.

Minnesota Statutes 2014, section 18B.32, subdivision 1, is amended to read:


Subdivision 1.

Requirement.

(a) A person may not engage in structural pest
control applications:

(1) for hire without a structural pest control license; and

(2) as a sole proprietorship, company, partnership, or corporation unless the person
is or employs a licensed master in structural pest control operations.

(b) A structural pest control licensee must have a valid license identification card
when applying to purchase a restricted use pesticide or apply pesticides for hire and must
display it upon demand by an authorized representative of the commissioner or a law
enforcement officer. The license identification card must contain information required by
the commissioner.

(c) Notwithstanding the licensing requirements of this subdivision, a person may
control the following nuisance or economically damaging wild animals, by trapping,
without a structural pest control license:

(1) fur-bearing animals, as defined in section 97A.015, with a valid trapping license
or special permit from the commissioner of natural resources; and

(2) skunks, woodchucks, gophers, porcupines, coyotes, moles, and weasels.

Sec. 7.

Minnesota Statutes 2014, section 18B.33, subdivision 1, is amended to read:


Subdivision 1.

Requirement.

(a) A person may not apply a pesticide for hire
without a commercial applicator license for the appropriate use categories or a structural
pest control license.

(b) A commercial applicator licensee must have a valid license identification card
when applying to purchase a restricted use pesticide or apply pesticides for hire and must
display it upon demand by an authorized representative of the commissioner or a law
enforcement officer. The commissioner shall prescribe the information required on the
license identification card.

Sec. 8.

Minnesota Statutes 2014, section 18B.34, subdivision 1, is amended to read:


Subdivision 1.

Requirement.

(a) Except for a licensed commercial applicator,
certified private applicator, or licensed structural pest control applicator, a person,
including a government employee, may not purchase or use a restricted use pesticide in
performance of official duties without having a noncommercial applicator license for an
appropriate use category.

(b) A licensee must have a valid license identification card when applying pesticides
and must display it upon demand by an authorized representative of the commissioner
or a law enforcement officer. The license identification card must contain information
required by the commissioner.

Sec. 9.

Minnesota Statutes 2014, section 18C.425, subdivision 6, is amended to read:


Subd. 6.

Payment of inspection fee.

(a) The person who registers and distributes in
the state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411
shall pay the inspection fee to the commissioner.

(b) The person licensed under section 18C.415 who distributes a fertilizer to a person
not required to be so licensed shall pay the inspection fee to the commissioner, except as
exempted under section 18C.421, subdivision 1, paragraph (b).

(c) The person responsible for payment of the inspection fees for fertilizers, soil
amendments, or plant amendments sold and used in this state must pay an inspection fee
of 30 39 cents per ton, and until June 30, 2019, an additional 40 cents per ton, of fertilizer,
soil amendment, and plant amendment sold or distributed in this state, with a minimum
of $10 on all tonnage reports. Notwithstanding section 18C.131, the commissioner
must deposit all revenue from the additional 40 cent per ton fee in the agricultural
fertilizer research and education account in section 18C.80.
Products sold or distributed to
manufacturers or exchanged between them are exempt from the inspection fee imposed by
this subdivision if the products are used exclusively for manufacturing purposes.

(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant
amendment, or soil amendment distribution amounts and inspection fees paid for a period
of three years.

Sec. 10.

Minnesota Statutes 2014, section 18C.70, subdivision 2, is amended to read:


Subd. 2.

Powers and duties.

The council must review applications and select
projects to receive agricultural fertilizer research and education program grants, as
authorized in section 18C.71. The council must establish a program to provide grants to
research, education, and technology transfer projects related to agricultural fertilizer, soil
amendments, and plant amendments. For the purpose of this section, "fertilizer" includes
soil amendments and plant amendments, but does not include vegetable or animal manures
that are not manipulated. The commissioner is responsible for all fiscal and administrative
duties in the first year and may use up to eight percent of program revenue to offset costs
incurred. No later than October 1, 2007, the commissioner must provide the council with
an estimate of the annual costs the commissioner would incur in administering the program
.

Sec. 11.

[18C.80] AGRICULTURAL FERTILIZER RESEARCH AND
EDUCATION ACCOUNT.

Subdivision 1.

Account; appropriation.

An agricultural fertilizer research
and education account is established in the agricultural fund. Money in the account,
including interest earned, is appropriated to the commissioner for grants determined by the
Minnesota Agricultural Fertilizer Research and Education Council under section 18C.71.
The commissioner may use up to $80,000 each fiscal year for direct costs incurred to
provide fiscal and administrative support to the council as required under section 18C.70,
subdivision 2. The commissioner may also recover associated indirect costs from the
account as required under section 16A.127.

Subd. 2.

Expiration.

This section expires June 30, 2020.

Sec. 12.

Minnesota Statutes 2014, section 18G.10, subdivision 3, is amended to read:


Subd. 3.

Cooperative agreements.

The commissioner may enter into cooperative
agreements with federal and state agencies for administration of the export certification
program. An exporter of plants or plant products desiring to originate shipments from
Minnesota to a foreign country requiring a phytosanitary certificate or export certificate
must submit an application to the commissioner.

Sec. 13.

Minnesota Statutes 2014, section 18G.10, subdivision 4, is amended to read:


Subd. 4.

Phytosanitary and export certificates.

An exporter of plants or plant
products desiring to originate shipments from Minnesota to a foreign country requiring
a phytosanitary certificate or export certificate must submit an application to the
commissioner.
Application for phytosanitary certificates or export certificates must be
made on forms provided or approved by the commissioner. The commissioner shall may
conduct inspections of plants, plant products, or facilities for persons that have applied for
or intend to apply for a phytosanitary certificate or export certificate from the commissioner.
Inspections must include one or more of the following as requested or required:

(1) an inspection of the plants or plant products intended for export under a
phytosanitary certificate or export certificate;

(2) field inspections of growing plants to determine presence or absence of plant
diseases, if necessary;

(3) laboratory diagnosis for presence or absence of plant diseases, if necessary;

(4) observation and evaluation of procedures and facilities utilized in handling
plants and plant products, if necessary; and

(5) review of United States Department of Agriculture, Federal Grain Inspection
Service Official Export Grain Inspection Certificate logs.

The commissioner may issue a phytosanitary certificate or export certificate if the
plants or plant products satisfactorily meet the requirements of the importing foreign
country and the United States Department of Agriculture requirements. The requirements
of the destination countries must be met by the applicant.

Sec. 14.

Minnesota Statutes 2014, section 18G.10, subdivision 5, is amended to read:


Subd. 5.

Certificate fees.

(a) The commissioner shall assess the fees in paragraphs
(b) to (f)
fees sufficient to recover all costs for the inspection, service, and work performed
in carrying out the issuance of a phytosanitary certificate or export certificate. The
inspection fee must be based on mileage and inspection time.

(b) Mileage charge: current United States Internal Revenue Service mileage rate.

(c) Inspection time: $50 per hour minimum or fee necessary to cover department
costs. Inspection time includes the driving time to and from the location in addition to
the time spent conducting the inspection.

(d) (b) If laboratory analysis or other technical analysis is required to issue a
certificate, the commissioner must set and collect the fee to recover this additional cost.

(e) (c) The certificate fee for product value greater than $250: is $75 or a fee amount,
not to exceed $300, that is sufficient to recover all processing costs
for each phytosanitary
or export certificate issued for any single shipment valued at more than $250 in addition to
any mileage or inspection time charges that are assessed.

(f) Certificate fee for product value less than $250: $25 for each phytosanitary or
export certificate issued for any single shipment valued at less than $250 in addition to
any mileage or inspection time charges that are assessed.

(g) (d) For services provided for in subdivision 7 that are goods and services
provided for the direct and primary use of a private individual, business, or other entity,
the commissioner must set and collect the fees to cover the cost of the services provided.

Sec. 15.

Minnesota Statutes 2014, section 18H.02, subdivision 20, is amended to read:


Subd. 20.

Nursery stock.

"Nursery stock" means a plant intended for planting or
propagation, including, but not limited to, trees, shrubs, vines, perennials, biennials, grafts,
cuttings, and buds that may be sold for propagation, whether cultivated or wild, and all
viable parts of these plants. Nursery stock does not include:

(1) field and forage crops or sod;

(2) the seeds of grasses, cereal grains, vegetable crops, and flowers;

(3) vegetable plants, bulbs, or tubers;

(4) cut flowers, unless stems or other portions are intended for propagation;

(5) annuals; or

(6) Christmas trees.

Sec. 16.

Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision
to read:


Subd. 32a.

Sod.

"Sod" means the upper portion of soil that contains the roots of
grasses and the living grass plants.

Sec. 17.

Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision
to read:


Subd. 35.

Tropical plant.

"Tropical plant" means a plant that has a United States
Department of Agriculture hardiness zone designation of zone 6 or greater, or an annual
minimum hardiness temperature of -9 degrees Fahrenheit.

Sec. 18.

Minnesota Statutes 2014, section 18H.06, subdivision 2, is amended to read:


Subd. 2.

Occasional sales.

(a) An individual may offer nursery stock for sale and be
exempt from the requirement to obtain a nursery stock dealer certificate if:

(1) the gross sales of all nursery stock in a calendar year do not exceed $2,000;

(2) all nursery stock sold or distributed by the individual is intended for planting
in Minnesota;

(3) all nursery stock purchased or procured for resale or distribution was grown in
Minnesota and has been certified by the commissioner; and

(4) the individual conducts sales or distributions of nursery stock on ten or fewer
days in a calendar year.

(b) The commissioner may prescribe the conditions of the exempt nursery sales under
this subdivision and may conduct routine inspections of the nursery stock offered for sale.

Sec. 19.

Minnesota Statutes 2014, section 18H.07, is amended to read:


18H.07 FEE SCHEDULE.

Subdivision 1.

Establishment of fees.

The commissioner shall establish fees
sufficient to allow for the administration and enforcement of this chapter and rules adopted
under this chapter, including the portion of general support costs and statewide indirect
costs of the agency attributable to that function, with a reserve sufficient for up to six
months. The commissioner shall review the fee schedule annually in consultation with
the Minnesota Nursery and Landscape Advisory Committee. For the certificate year
beginning January 1, 2006, the fees are as described in this section.

Subd. 2.

Nursery stock grower certificate.

(a) A nursery stock grower must
pay an annual fee based on the area of all acreage on which nursery stock is grown for
certification
as follows:

(1) less than one-half acre, $150;

(2) from one-half acre to two acres, $200;

(3) over two acres up to five acres, $300;

(4) over five acres up to ten acres, $350;

(5) over ten acres up to 20 acres, $500;

(6) over 20 acres up to 40 acres, $650;

(7) over 40 acres up to 50 acres, $800;

(8) over 50 acres up to 200 acres, $1,100;

(9) over 200 acres up to 500 acres, $1,500; and

(10) over 500 acres, $1,500 plus $2 for each additional acre.

(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due
must be charged for each month, or portion thereof, that the fee is delinquent up to a
maximum of 30 percent for any application for renewal not postmarked by December 31
of the current year.

(c) A nursery stock grower found operating without a valid nursery stock grower
certificate cannot offer for sale or sell nursery stock until: (1) payment is received by the
commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee
owed; and (2) a new certificate is issued to the nursery stock grower by the commissioner.

Subd. 3.

Nursery stock dealer certificate.

(a) A nursery stock dealer must pay an
annual fee based on the dealer's gross sales of certified nursery stock per location during
the most recent certificate year. A certificate applicant operating for the first time must pay
the minimum fee. The fees per sales location are:

(1) gross sales up to $5,000, $150;

(2) gross sales over $5,000 up to $20,000, $175;

(3) gross sales over $20,000 up to $50,000, $300;

(4) gross sales over $50,000 up to $75,000, $425;

(5) gross sales over $75,000 up to $100,000, $550;

(6) gross sales over $100,000 up to $200,000, $675; and

(7) gross sales over $200,000, $800.

(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due
must be charged for each month, or portion thereof, that the fee is delinquent up to a
maximum of 30 percent for any application for renewal not postmarked by December 31
of the current year.

(c) A nursery stock dealer found operating without a valid nursery stock dealer
certificate cannot offer for sale or sell nursery stock until: (1) payment is received by the
commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee
owed; and (2) a new certificate is issued to the nursery stock dealer by the commissioner.

Subd. 4.

Reinspection; additional or optional inspection fees.

If a reinspection is
required or an additional inspection is needed or requested a fee must be assessed based
on mileage and inspection time as follows:

(1) mileage must be charged at the current United States Internal Revenue Service
reimbursement rate; and

(2) inspection time must be charged at the rate of $50 per hour a rate sufficient to
recover all inspection costs
, including the driving time to and from the location in addition
to the time spent conducting the inspection.

Sec. 20.

Minnesota Statutes 2014, section 18H.17, is amended to read:


18H.17 NURSERY AND PHYTOSANITARY ACCOUNT.

A nursery and phytosanitary account is established in the state treasury. The fees
and penalties collected under this chapter and interest attributable to money in the account
must be deposited in the state treasury and credited to the nursery and phytosanitary
account in the agricultural fund. Money in the account, including interest earned, is
annually appropriated to the commissioner for the administration and enforcement for
this chapter. The commissioner may spend no more than $20,000 from the account each
fiscal year for purposes of section 18H.14, paragraph (e).

Sec. 21.

Minnesota Statutes 2014, section 18J.01, is amended to read:


18J.01 DEFINITIONS.

(a) The definitions in sections 18G.02, 18H.02, 18K.02, 27.01, 223.16, 231.01,
and 232.21 apply to this chapter.

(b) For purposes of this chapter, "associated rules" means rules adopted under this
chapter, chapter 18G, 18H, 18K, 27, 223, 231, or 232, or sections 21.80 to 21.92.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 22.

Minnesota Statutes 2014, section 18J.02, is amended to read:


18J.02 DUTIES OF COMMISSIONER.

The commissioner shall administer and enforce this chapter, chapters 18G, 18H,
18K, 27, 223, 231, and 232; sections 21.80 to 21.92; and associated rules.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 23.

Minnesota Statutes 2014, section 18J.03, is amended to read:


18J.03 CIVIL LIABILITY.

A person regulated by this chapter, chapter 18G, 18H, 18K, 27, 223, 231, or 232,
or sections 21.80 to 21.92, is civilly liable for any violation of one of those statutes or
associated rules by the person's employee or agent.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 24.

Minnesota Statutes 2014, section 18J.04, subdivision 1, is amended to read:


Subdivision 1.

Access and entry.

The commissioner, upon presentation of official
department credentials, must be granted immediate access at reasonable times to sites
where a person manufactures, distributes, uses, handles, disposes of, stores, or transports
seeds, plants, grain, household goods, general merchandise, produce, or other living or
nonliving products or other objects regulated under chapter 18G, 18H, 18K, 27, 223, 231,
or 232; sections 21.80 to 21.92; or associated rules.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 25.

Minnesota Statutes 2014, section 18J.04, subdivision 2, is amended to read:


Subd. 2.

Purpose of entry.

(a) The commissioner may enter sites for:

(1) inspection of inventory and equipment for the manufacture, storage, handling,
distribution, disposal, or any other process regulated under chapter 18G, 18H, 18K, 27,
223, 231, or 232; sections 21.80 to 21.92; or associated rules;

(2) sampling of sites, seeds, plants, products, grain, household goods, general
merchandise, produce, or other living or nonliving objects that are manufactured, stored,
distributed, handled, or disposed of at those sites and regulated under chapter 18G, 18H,
18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules;

(3) inspection of records related to the manufacture, distribution, storage, handling,
or disposal of seeds, plants, products, grain, household goods, general merchandise,
produce, or other living or nonliving objects regulated under chapter 18G, 18H, 18K, 27,
223, 231, or 232; sections 21.80 to 21.92; or associated rules;

(4) investigating compliance with chapter 18G, 18H, 18K, 27, 223, 231, or 232;
sections 21.80 to 21.92; or associated rules; or

(5) other purposes necessary to implement chapter 18G, 18H, 18K, 27, 223, 231, or
232; sections 21.80 to 21.92; or associated rules.

(b) The commissioner may enter any public or private premises during or after
regular business hours without notice of inspection when a suspected violation of chapter
18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules may
threaten public health or the environment.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 26.

Minnesota Statutes 2014, section 18J.04, subdivision 3, is amended to read:


Subd. 3.

Notice of inspection samples and analyses.

(a) The commissioner shall
provide the owner, operator, or agent in charge with a receipt describing any samples
obtained. If requested, the commissioner shall split any samples obtained and provide
them to the owner, operator, or agent in charge. If an analysis is made of the samples,
a copy of the results of the analysis must be furnished to the owner, operator, or agent
in charge within 30 days after an analysis has been performed. If an analysis is not
performed, the commissioner must notify the owner, operator, or agent in charge within 30
days of the decision not to perform the analysis.

(b) The sampling and analysis must be done according to methods provided for
under applicable provisions of chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections
21.80 to 21.92; or associated rules. In cases not covered by those sections and methods
or in cases where methods are available in which improved applicability has been
demonstrated the commissioner may adopt appropriate methods from other sources.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 27.

Minnesota Statutes 2014, section 18J.04, subdivision 4, is amended to read:


Subd. 4.

Inspection requests by others.

(a) A person who believes that a violation
of chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated
rules has occurred may request an inspection by giving notice to the commissioner of the
violation. The notice must be in writing, state with reasonable particularity the grounds
for the notice, and be signed by the person making the request.

(b) If after receiving a notice of violation the commissioner reasonably believes that
a violation has occurred, the commissioner shall make a special inspection in accordance
with the provisions of this section as soon as practicable, to determine if a violation has
occurred.

(c) An inspection conducted pursuant to a notice under this subdivision may cover
an entire site and is not limited to the portion of the site specified in the notice. If the
commissioner determines that reasonable grounds to believe that a violation occurred
do not exist, the commissioner must notify the person making the request in writing of
the determination.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 28.

Minnesota Statutes 2014, section 18J.05, subdivision 1, is amended to read:


Subdivision 1.

Enforcement required.

(a) A violation of chapter 18G, 18H, 18K, 27,
223, 231, or 232; sections 21.80 to 21.92; or an associated rule is a violation of this chapter.

(b) Upon the request of the commissioner, county attorneys, sheriffs, and other
officers having authority in the enforcement of the general criminal laws must take action
to the extent of their authority necessary or proper for the enforcement of chapter 18G,
18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules or valid
orders, standards, stipulations, and agreements of the commissioner.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 29.

Minnesota Statutes 2014, section 18J.05, subdivision 2, is amended to read:


Subd. 2.

Commissioner's discretion.

If minor violations of chapter 18G, 18H,
18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules occur or the
commissioner believes the public interest will be best served by a suitable notice of
warning in writing, this section does not require the commissioner to:

(1) report the violation for prosecution;

(2) institute seizure proceedings; or

(3) issue a withdrawal from distribution, stop-sale, or other order.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 30.

Minnesota Statutes 2014, section 18J.05, subdivision 6, is amended to read:


Subd. 6.

Agent for service of process.

All persons licensed, permitted, registered,
or certified under chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or
associated rules must appoint the commissioner as the agent upon whom all legal process
may be served and service upon the commissioner is deemed to be service on the licensee,
permittee, registrant, or certified person.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 31.

Minnesota Statutes 2014, section 18J.06, is amended to read:


18J.06 FALSE STATEMENT OR RECORD.

A person must not knowingly make or offer a false statement, record, or other
information as part of:

(1) an application for registration, license, certification, or permit under chapter 18G,
18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules;

(2) records or reports required under chapter 18G, 18H, 18K, 27, 223, 231, or 232;
sections 21.80 to 21.92; or associated rules; or

(3) an investigation of a violation of chapter 18G, 18H, 18K, 27, 223, 231, or 232;
sections 21.80 to 21.92; or associated rules.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 32.

Minnesota Statutes 2014, section 18J.07, subdivision 3, is amended to read:


Subd. 3.

Cancellation of registration, permit, license, certification.

The
commissioner may cancel or revoke a registration, permit, license, or certification
provided for under chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92;
or associated rules or refuse to register, permit, license, or certify under provisions of
chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules
if the registrant, permittee, licensee, or certified person has used fraudulent or deceptive
practices in the evasion or attempted evasion of a provision of chapter 18G, 18H, 18K, 27,
223, 231, or 232; sections 21.80 to 21.92; or associated rules.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 33.

Minnesota Statutes 2014, section 18J.07, subdivision 4, is amended to read:


Subd. 4.

Service of order or notice.

(a) If a person is not available for service of an
order, the commissioner may attach the order to the facility, site, seed or seed container,
plant or other living or nonliving object regulated under chapter 18G, 18H, 18K, 27, 223,
231, or 232; sections 21.80 to 21.92; or associated rules and notify the owner, custodian,
other responsible party, or registrant.

(b) The seed, seed container, plant, or other living or nonliving object regulated
under chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated
rules may not be sold, used, tampered with, or removed until released under conditions
specified by the commissioner, by an administrative law judge, or by a court.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 34.

Minnesota Statutes 2014, section 18J.07, subdivision 5, is amended to read:


Subd. 5.

Unsatisfied judgments.

(a) An applicant for a license, permit, registration,
or certification under provisions of this chapter, chapter 18G, 18H, 18K, 27, 223, 231, or
232; sections 21.80 to 21.92; or associated rules may not allow a final judgment against
the applicant for damages arising from a violation of those statutes or rules to remain
unsatisfied for a period of more than 30 days.

(b) Failure to satisfy, within 30 days, a final judgment resulting from a violation of this
chapter results in automatic suspension of the license, permit, registration, or certification.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 35.

Minnesota Statutes 2014, section 18J.09, is amended to read:


18J.09 CREDITING OF PENALTIES, FEES, AND COSTS.

Penalties, cost reimbursements, fees, and other money collected under this chapter
must be deposited into the state treasury and credited to the appropriate nursery and
phytosanitary, industrial hemp, or seed account.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 36.

Minnesota Statutes 2014, section 18J.11, subdivision 1, is amended to read:


Subdivision 1.

General violation.

Except as provided in subdivisions 2 and, 3, and
4
, a person is guilty of a misdemeanor if the person violates this chapter or an order,
standard, stipulation, agreement, or schedule of compliance of the commissioner.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 37.

Minnesota Statutes 2014, section 18J.11, is amended by adding a subdivision
to read:


Subd. 4.

Controlled substance offenses.

Prosecution under this section does not
preclude prosecution under chapter 152.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 38.

[18K.01] SHORT TITLE.

This chapter may be referred to as the "Industrial Hemp Development Act."

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 39.

[18K.02] DEFINITIONS.

Subdivision 1.

Scope.

The definitions in this section apply to this chapter.

Subd. 2.

Commissioner.

"Commissioner" means the commissioner of agriculture.

Subd. 3.

Industrial hemp.

"Industrial hemp" means the plant Cannabis sativa L.
and any part of the plant, whether growing or not, with a delta-9 tetrahydrocannabinol
concentration of not more than 0.3 percent on a dry weight basis. Industrial hemp is not
marijuana as defined in section 152.01, subdivision 9.

Subd. 4.

Marijuana.

"Marijuana" has the meaning given in section 152.01,
subdivision 9.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 40.

[18K.03] AGRICULTURAL CROP; POSSESSION AUTHORIZED.

Industrial hemp is an agricultural crop in this state. A person may possess, transport,
process, sell, or buy industrial hemp that is grown pursuant to this chapter.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 41.

[18K.04] LICENSING.

Subdivision 1.

Requirement; issuance; presumption.

(a) A person must obtain a
license from the commissioner before growing industrial hemp for commercial purposes.
A person must apply to the commissioner in the form prescribed by the commissioner and
must pay the annual registration and inspection fee established by the commissioner in
accordance with section 16A.1285, subdivision 2. The license application must include
the name and address of the applicant and the legal description of the land area or areas
where industrial hemp will be grown by the applicant.

(b) When an applicant has paid the fee and completed the application process to the
satisfaction of the commissioner, the commissioner must issue a license which is valid
until December 31 of the year of application.

(c) A person licensed under this section is presumed to be growing industrial hemp
for commercial purposes.

Subd. 2.

Background check; data classification.

The commissioner must require
each first-time applicant for a license to submit to a background investigation conducted
by the Bureau of Criminal Apprehension as a condition of licensure. As part of the
background investigation, the Bureau of Criminal Apprehension must conduct criminal
history checks of Minnesota records and is authorized to exchange fingerprints with the
United States Department of Justice, Federal Bureau of Investigation for the purpose of a
criminal background check of the national files. The cost of the investigation must be paid
by the applicant. Criminal history records provided to the commissioner under this section
must be treated as private data on individuals, as defined in section 13.02, subdivision 12.

Subd. 3.

Federal requirements.

The applicant must demonstrate to the satisfaction
of the commissioner that the applicant has complied with all applicable federal
requirements pertaining to the production, distribution, and sale of industrial hemp.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 42.

[18K.05] ANNUAL REPORT; SALES NOTIFICATION.

(a) Annually, a licensee must file with the commissioner:

(1) documentation demonstrating to the commissioner's satisfaction that the seeds
planted by the licensee are of a type and variety that contain no more than three-tenths of
one percent delta-9 tetrahydrocannabinol; and

(2) a copy of any contract to grow industrial hemp.

(b) Within 30 days, a licensee must notify the commissioner of each sale or
distribution of industrial hemp grown by the licensee including, but not limited to, the
name and address of the person receiving the industrial hemp and the amount of industrial
hemp sold or distributed.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 43.

[18K.06] RULEMAKING.

(a) The commissioner shall adopt rules governing the production, testing, and
licensing of industrial hemp.

(b) Rules adopted under paragraph (a) must include, but not be limited to, provisions
governing:

(1) the supervision and inspection of industrial hemp during its growth and harvest;

(2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;

(3) the use of background checks results required under section 18K.04 to approve
or deny a license application; and

(4) any other provision or procedure necessary to carry out the purposes of this
chapter.

(c) Rules issued under this section must be consistent with federal law regarding
the production, distribution, and sale of industrial hemp.

EFFECTIVE DATE.

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

Sec. 44.

[18K.07] FEES.

Fees collected under this chapter must be credited to the industrial hemp account,
which is hereby established in the agricultural fund in the state treasury. Interest earned
in the account accrues to the account. Funds in the industrial hemp account are annually
appropriated to the commissioner to implement and enforce this chapter.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 45.

[18K.08] DEFENSE FOR POSSESSION OF MARIJUANA.

It is an affirmative defense to a prosecution for the possession of marijuana under
chapter 152 if:

(1) the defendant possesses industrial hemp grown pursuant to this chapter; or

(2) the defendant has a valid controlled substance registration from the United States
Department of Justice, Drug Enforcement Administration, if required under federal law.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 46.

[18K.09] PILOT PROGRAM; OTHER RESEARCH AUTHORIZED.

Subdivision 1.

Authorized activity.

The commissioner may grow or cultivate
industrial hemp pursuant to a pilot program administered by the commissioner to study
the growth, cultivation, or marketing of industrial hemp. The commissioner may: (1)
authorize institutions of higher education to grow or cultivate industrial hemp as part
of the commissioner's pilot program or as is necessary to perform other agricultural,
renewable energy, or academic research; and (2) contract with public or private entities for
testing or other activities authorized under this subdivision. Authorized activity under this
section may include collecting seed from wild hemp sources.

Subd. 2.

Site registration.

Before growing or cultivating industrial hemp pursuant
to this section, each site must be registered with and certified by the commissioner. A
person must register each site annually in the form prescribed by the commissioner and
must pay the annual registration and certification fee established by the commissioner in
accordance with section 16A.1285, subdivision 2.

Subd. 3.

Rulemaking.

The commissioner may adopt rules that govern the pilot
program pursuant to this section and Public Law 113-79.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 47.

Minnesota Statutes 2014, section 21.89, subdivision 2, is amended to read:


Subd. 2.

Permits; issuance and revocation.

The commissioner shall issue a permit
to the initial labeler of agricultural, vegetable, flower, and wildflower seeds which are sold
for use in Minnesota and which conform to and are labeled under sections 21.80 to 21.92.
The categories of permits are as follows:

(1) for initial labelers who sell 50,000 pounds or less of agricultural seed each
calendar year, an annual permit issued for a fee established in section 21.891, subdivision
2
, paragraph (b);

(2) for initial labelers who sell vegetable, flower, and wildflower seed packed for
use in home gardens or household plantings, and initial labelers who sell native grasses
and wildflower seed in commercial or agricultural quantities,
an annual permit issued for
a fee established in section 21.891, subdivision 2, paragraph (c), based upon the gross
sales from the previous year; and

(3) for initial labelers who sell more than 50,000 pounds of agricultural seed
each calendar year, a permanent permit issued for a fee established in section 21.891,
subdivision 2
, paragraph (d).

In addition, the person shall furnish to the commissioner an itemized statement of all
seeds sold in Minnesota for the periods established by the commissioner. This statement
shall be delivered, along with the payment of the fee, based upon the amount and type
of seed sold, to the commissioner no later than 30 days after the end of each reporting
period. Any person holding a permit shall show as part of the analysis labels or invoices
on all agricultural, vegetable, flower, wildflower, tree, or shrub seeds all information the
commissioner requires. The commissioner may revoke any permit in the event of failure
to comply with applicable laws and rules.

Sec. 48.

Minnesota Statutes 2014, section 21.891, subdivision 2, is amended to read:


Subd. 2.

Seed fee permits.

(a) An initial labeler who wishes to sell seed in
Minnesota must comply with section 21.89, subdivisions 1 and 2, and the procedures in
this subdivision. Each initial labeler who wishes to sell seed in Minnesota must apply to
the commissioner to obtain a permit. The application must contain the name and address of
the applicant, the application date, and the name and title of the applicant's contact person.

(b) The application for a seed permit covered by section 21.89, subdivision 2, clause
(1), must be accompanied by an application fee of $50 $75.

(c) The application for a seed permit covered by section 21.89, subdivision 2, clause
(2), must be accompanied by an application fee based on the level of annual gross sales
as follows:

(1) for gross sales of $0 to $25,000, the annual permit fee is $50 $75;

(2) for gross sales of $25,001 to $50,000, the annual permit fee is $100 $150;

(3) for gross sales of $50,001 to $100,000, the annual permit fee is $200 $300;

(4) for gross sales of $100,001 to $250,000, the annual permit fee is $500 $750;

(5) for gross sales of $250,001 to $500,000, the annual permit fee is $1,000 $1,500;
and

(6) for gross sales of $500,001 and above to $1,000,000, the annual permit fee is
$2,000 $3,000; and

(7) for gross sales of $1,000,001 and above, the annual permit fee is $4,500.

(d) The application for a seed permit covered by section 21.89, subdivision 2, clause
(3), must be accompanied by an application fee of $50 $75. Initial labelers holding seed
fee permits covered under this paragraph need not apply for a new permit or pay the
application fee. Under this permit category, the fees for the following kinds of agricultural
seed sold either in bulk or containers are:

(1) oats, wheat, and barley, 6.3 9 cents per hundredweight;

(2) rye, field beans, soybeans, buckwheat, and flax, 8.4 12 cents per hundredweight;

(3) field corn, 29.4 17 cents per hundredweight 80,000 seed unit;

(4) forage, lawn and turf grasses, and legumes, 49 69 cents per hundredweight;

(5) sunflower, $1.40 $1.96 per hundredweight;

(6) sugar beet, $3.29 12 cents per hundredweight 100,000 seed unit; and

(7) soybeans, 7.5 cents per 140,000 seed unit; and

(7) (8) for any agricultural seed not listed in clauses (1) to (6) (7), the fee for the crop
most closely resembling it in normal planting rate applies.

(e) If, for reasons beyond the control and knowledge of the initial labeler, seed is
shipped into Minnesota by a person other than the initial labeler, the responsibility for the
seed fees are transferred to the shipper. An application for a transfer of this responsibility
must be made to the commissioner. Upon approval by the commissioner of the transfer,
the shipper is responsible for payment of the seed permit fees.

(f) Seed permit fees may be included in the cost of the seed either as a hidden cost or
as a line item cost on each invoice for seed sold. To identify the fee on an invoice, the
words "Minnesota seed permit fees" must be used.

(g) All seed fee permit holders must file semiannual reports with the commissioner,
even if no seed was sold during the reporting period. Each semiannual report must be
submitted within 30 days of the end of each reporting period. The reporting periods are
October 1 to March 31 and April 1 to September 30 of each year or July 1 to December
31 and January 1 to June 30 of each year. Permit holders may change their reporting
periods with the approval of the commissioner.

(h) The holder of a seed fee permit must pay fees on all seed for which the permit
holder is the initial labeler and which are covered by sections 21.80 to 21.92 and sold
during the reporting period.

(i) If a seed fee permit holder fails to submit a semiannual report and pay the seed
fee within 30 days after the end of each reporting period, the commissioner shall assess a
penalty of $100 or eight percent, calculated on an annual basis, of the fee due, whichever
is greater, but no more than $500 for each late semiannual report. A $15 penalty must be
charged when the semiannual report is late, even if no fee is due for the reporting period.
Seed fee permits may be revoked for failure to comply with the applicable provisions of
this paragraph or the Minnesota seed law.

Sec. 49.

Minnesota Statutes 2014, section 21.891, subdivision 5, is amended to read:


Subd. 5.

Brand name registration fee.

The fee is $25 $50 for each variety
registered for sale by brand name.

Sec. 50.

Minnesota Statutes 2014, section 25.341, subdivision 2, is amended to read:


Subd. 2.

Application; fee; term.

A person who is required to have a commercial
feed license shall submit an application on a form provided or approved by the
commissioner accompanied by a fee of $25 $75 paid to the commissioner for each
location. A license is not transferable from one person to another, from one ownership to
another, or from one location to another. The license year is the calendar year. A license
expires on December 31 of the year for which it is issued, except that a license is valid
through January 31 of the next year or until the issuance of the renewal license, whichever
comes first, if the licensee has filed a renewal application with the commissioner on or
before December 31 of the year for which the current license was issued. Any person who
is required to have, but fails to obtain a license or a licensee who fails to comply with
license renewal requirements, shall pay a $50 $100 late fee in addition to the license fee.

Sec. 51.

Minnesota Statutes 2014, section 25.39, subdivision 1, is amended to read:


Subdivision 1.

Amount of fee.

(a) An inspection fee at the rate of 16 cents per ton
must be paid to the commissioner on commercial feeds distributed in this state by the
person who first distributes the commercial feed, except that:

(1) no fee need be paid on:

(i) a commercial feed if the payment has been made by a previous distributor; or

(ii) customer formula feeds if the inspection fee is paid on the commercial feeds
which are used as ingredients; or

(2) a Minnesota feed distributor who can substantiate that greater than 50 percent
of the distribution of commercial feed is to purchasers outside the state may purchase
commercial feeds without payment of the inspection fee under a tonnage fee exemption
permit issued by the commissioner. Such location specific permits shall be issued on a
calendar year basis to commercial feed distributors who submit a $100 nonrefundable
application fee and comply with rules adopted by the commissioner relative to record
keeping, tonnage of commercial feed distributed in Minnesota, total of all commercial
feed tonnage distributed, and all other information which the commissioner may require
so as to ensure that proper inspection fee payment has been made.

(b) In the case of pet food distributed in the state only in packages of ten pounds
or less, a listing of each product and a current label for each product must be submitted
annually on forms provided by the commissioner and accompanied by an annual fee of
$50 $100 for each product in lieu of the inspection fee. This annual fee is due by July 1.
The inspection fee required by paragraph (a) applies to pet food distributed in packages
exceeding ten pounds.

(c) In the case of specialty pet food distributed in the state only in packages of
ten pounds or less, a listing of each product and a current label for each product must
be submitted annually on forms provided by the commissioner and accompanied by an
annual fee of $25 $100 for each product in lieu of the inspection fee. This annual fee is
due by July 1. The inspection fee required by paragraph (a) applies to specialty pet food
distributed in packages exceeding ten pounds.

(d) The minimum inspection fee is $10 $75 per annual reporting period.

Sec. 52.

Minnesota Statutes 2014, section 25.39, subdivision 1a, is amended to read:


Subd. 1a.

Containers of ten pounds or less.

A distributor who is subject to the
annual fee specified in subdivision 1, paragraph (b) or (c), shall do the following:

(1) before beginning distribution, file with the commissioner a listing of pet and
specialty pet foods to be distributed in the state only in containers of ten pounds or less,
on forms provided by the commissioner. The listing under this clause must be renewed
annually before July 1 and is the basis for the payment of the annual fee. New products
added during the year must be submitted to the commissioner as a supplement to the
annual listing before distribution; and

(2) if the annual renewal of the listing is not received before July 1 or if an unlisted
product is distributed, pay a late filing fee of $10 $100 per product in addition to the
normal charge for the listing. The late filing fee under this clause is in addition to any
other penalty under this chapter.

Sec. 53.

[28A.152] COTTAGE FOODS EXEMPTION.

Subdivision 1.

Licensing provisions applicability.

(a) The licensing provisions of
sections 28A.01 to 28A.16 do not apply to the following:

(1) an individual who prepares and sells food that is not potentially hazardous food,
as defined in Minnesota Rules, part 4626.0020, subpart 62, if the following requirements
are met:

(i) the prepared food offered for sale under this clause is labeled to accurately reflect
the name and address of the individual preparing and selling the food, the date on which
the food was prepared, and the ingredients and any possible allergens; and

(ii) the individual displays at the point of sale a clearly legible sign or placard stating:
"These products are homemade and not subject to state inspection."; and

(2) an individual who prepares and sells home-processed and home-canned food
products if the following requirements are met:

(i) the products are pickles, vegetables, or fruits having an equilibrium pH value of
4.6 or lower;

(ii) the products are home-processed and home-canned in Minnesota;

(iii) the individual displays at the point of sale a clearly legible sign or placard
stating: "These canned goods are homemade and not subject to state inspection."; and

(iv) each container of the product sold or offered for sale under this clause is
accurately labeled to provide the name and address of the individual who processed
and canned the goods, the date on which the goods were processed and canned, and
ingredients and any possible allergens.

(b) An individual who qualifies for an exemption under paragraph (a), clause (2), is
also exempt from the provisions of sections 31.31 and 31.392.

Subd. 2.

Direct sales to consumers.

(a) An individual qualifying for an exemption
under subdivision 1 may sell the exempt food:

(1) directly to the ultimate consumer;

(2) at a community event or farmers' market; or

(3) directly from the individual's home to the consumer, to the extent allowed by
local ordinance.

(b) If an exempt food product will be delivered to the ultimate consumer upon sale
of the food product, the individual who prepared the food product must be the person who
delivers the food product to the ultimate consumer.

(c) Food products exempt under subdivision 1, paragraph (a), clause (2), may not be
sold outside of Minnesota.

(d) Food products exempt under subdivision 1 may be sold over the Internet but
must be delivered directly to the ultimate consumer by the individual who prepared the
food product. The statement "These products are homemade and not subject to state
inspection." must be displayed on the Web site that offers the exempt foods for purchase.

Subd. 3.

Limitation on sales.

An individual selling exempt foods under this section
is limited to total sales with gross receipts of $18,000 or less in a calendar year.

Subd. 4.

Registration.

An individual who prepares and sells exempt food under
subdivision 1 must register annually with the commissioner. The annual registration fee is
$50. An individual with $5,000 or less in annual gross receipts from the sale of exempt
food under this section is not required to pay the registration fee.

Subd. 5.

Training.

(a) An individual with gross receipts between $5,000 and
$18,000 in a calendar year from the sale of exempt food under this section must complete a
safe food handling training course that is approved by the commissioner before registering
under subdivision 4. The training shall not exceed eight hours and must be completed
every three years while the individual is registered under subdivision 4.

(b) An individual with gross receipts of less than $5,000 in a calendar year from
the sale of exempt food under this section must satisfactorily complete an online course
and exam as approved by the commissioner before registering under subdivision 4. The
commissioner shall offer the online course and exam under this paragraph at no cost to
the individual.

Subd. 6.

Local ordinances.

This section does not preempt the application of any
business licensing requirement or sanitation, public health, or zoning ordinance of a
political subdivision.

Subd. 7.

Account established.

A cottage foods account is created as a separate
account in the agricultural fund in the state treasury for depositing money received by the
commissioner under this section. Money in the account, including interest, is appropriated
to the commissioner for purposes of this section.

Sec. 54.

Minnesota Statutes 2014, section 32.075, is amended to read:


32.075 TERM OF LICENSE; TRANSFERABILITY; FEES AND PENALTIES.

Every An initial license issued by the commissioner shall be for a period ending
expires on the following December 31st day of December next following, and shall is not
be transferable. A renewal license is valid for two years and expires on December 31 of
the second year.
The fee for each such an initial or renewal license shall be $50 and each
renewal thereof shall be $25 and
is $60. The fee shall be paid to the commissioner before
any the commissioner issues an initial or renewal license or renewal thereof is issued. If a
license renewal is not applied for on or before January 1 of each year, a penalty of $10 $30
shall be imposed. A person who does not renew a license within one year following its
December 31 expiration date, except those persons who do not renew such license while
engaged in active military service, shall be required to prove competency and qualification
pursuant to section 32.073, before a license is issued. The commissioner may require any
other person who renews a license to prove competency and qualification in the same
manner. All license fees and penalties received by the commissioner shall be paid into the
state treasury
deposited in the dairy services account in the agricultural fund.

Sec. 55.

Minnesota Statutes 2014, section 32.105, is amended to read:


32.105 MILK PROCUREMENT FEE.

Each dairy plant operator within the state must pay to the commissioner on or before
the 18th of each month a fee of .71 1.1 cents per hundredweight of milk purchased the
previous month. If a milk producer within the state ships milk out of the state for sale, the
producer must pay the fee to the commissioner unless the purchaser voluntarily pays the fee.

Producers who ship milk out of state or processors must submit monthly reports as
to milk purchases along with the appropriate procurement fee to the commissioner. The
commissioner may have access to all relevant purchase or sale records as necessary to
verify compliance with this section and may require the producer or purchaser to produce
records as necessary to determine compliance.

The fees collected under this section must be deposited in the dairy services account
in the agricultural fund. Money in the account, including interest earned, is appropriated
to the commissioner to administer this chapter.

Sec. 56.

[41A.14] AGRICULTURE RESEARCH, EDUCATION, EXTENSION,
AND TECHNOLOGY TRANSFER GRANT PROGRAM.

Subdivision 1.

Duties; grants.

The agriculture research, education, extension, and
technology transfer grant program is created. The purpose of the grant program is to
provide investments that will most efficiently achieve long-term agricultural productivity
increases through improved infrastructure, vision, and accountability. The scope and
intent of the grants, to the extent possible, shall provide for a long-term base funding
that allows the research grantee to continue the functions of the research, education, and
extension efforts to a practical conclusion. Priority for grants shall be given to human
infrastructure. The commissioner shall provide grants for:

(1) agricultural research and technology transfer needs and recipients including
agricultural research and extension at the University of Minnesota, research and outreach
centers, the College of Food, Agricultural and Natural Resource Sciences, the Minnesota
Agricultural Experiment Station, University of Minnesota Extension Service, the
University of Minnesota Veterinary School, the Veterinary Diagnostic Laboratory,
the Stakman-Borlaug Center, and the Minnesota Agriculture Fertilizer Research and
Education Council;

(2) agriculture rapid response for plant and animal diseases and pests; and

(3) agricultural education including but not limited to the Minnesota Agriculture
Education Leadership Council, farm business management, mentoring programs, graduate
debt forgiveness, and high school programs.

Subd. 2.

Advisory panel.

In awarding grants under this section, the commissioner
must consult with an advisory panel consisting of the following stakeholders:

(1) a representative of the College of Food, Agricultural and Natural Resource
Sciences at the University of Minnesota;

(2) a representative of the Minnesota State Colleges and Universities system;

(3) a representative of the Minnesota Farm Bureau;

(4) a representative of the Minnesota Farmers Union;

(5) a person representing agriculture industry statewide;

(6) a representative of each of the state commodity councils organized under section
17.54 and the Minnesota Pork Board;

(7) a person representing an association of primary manufacturers of forest products;

(8) a person representing organic or sustainable agriculture; and

(9) a person representing statewide environment and natural resource conservation
organizations.

Subd. 3.

Account.

An agriculture research, education, extension, and technology
transfer account is created in the agricultural fund in the state treasury. The account
consists of money received in the form of gifts, grants, reimbursement, or appropriations
from any source for any of the purposes provided in subdivision 1, and any interest or
earnings of the account. Money in the account is appropriated to the commissioner of
agriculture for the purposes under subdivision 1.

Sec. 57.

[41A.15] DEFINITIONS.

Subdivision 1.

Scope.

For the purposes of sections 41A.15 to 41A.18, the terms
defined in this section have the meanings given them.

Subd. 2.

Advanced biofuel.

"Advanced biofuel" has the meaning given in section
239.051, subdivision 1a.

Subd. 3.

Biomass thermal production.

"Biomass thermal production" means the
generation of energy for commercial heat or industrial process heat from a cellulosic
material or other material composed of forestry or agricultural feedstocks for a new or
expanding capacity facility or a facility that is displacing existing use of fossil fuel after
the effective date of this section.

Subd. 4.

Cellulosic biomass.

"Cellulosic biomass" means material primarily made
up of cellulose, hemicellulose, or lingnin, or a combination of those ingredients.

Subd. 5.

Cellulosic sugar.

"Cellulosic sugar" means sugar derived from cellulosic
biomass from agricultural or forestry resources.

Subd. 6.

Commissioner.

"Commissioner" means the commissioner of agriculture.

Subd. 7.

Cover crops.

"Cover crops" means grasses, legumes, forbs, or other
herbaceous plants that are known to be noninvasive and not listed as a noxious weed in
Minnesota and that are either interseeded into living cash crops or planted on agricultural
fields during fallow periods for seasonal cover and conservation purposes.

Subd. 8.

MMbtu.

"MMbtu" means 1,000,000 British thermal units.

Subd. 9.

Perennial crops.

"Perennial crops" means agriculturally produced plants
that are known to be noninvasive and not listed as a noxious weed in Minnesota and that
have a life cycle of at least three years at the location where the plants are being cultivated.
Biomass from alfalfa produced in a two-year rotation shall be considered a perennial crop.

Subd. 10.

Renewable chemical.

"Renewable chemical" means a chemical with
biobased content as defined in section 41A.105, subdivision 1a.

Sec. 58.

[41A.16] ADVANCED BIOFUEL PRODUCTION INCENTIVE.

Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or
less from the state border, raw materials may be sourced from within a 100-mile radius.
Raw materials must be from agricultural or forestry sources or from solid waste. The
facility must be located in Minnesota, must begin production at a specific location by June
30, 2025, and must not begin operating above 95,000 MMbtu of annual biofuel production
before July 1, 2015. Eligible facilities include existing companies and facilities that are
adding advanced biofuel production capacity, or retrofitting existing capacity, as well as
new companies and facilities. Production of conventional corn ethanol and conventional
biodiesel is not eligible. Eligible advanced biofuel facilities must produce at least 95,000
MMbtu a year.

(b) No payments shall be made for advanced biofuel production that occurs after
June 30, 2035, for those eligible biofuel producers under paragraph (a).

(c) An eligible producer of advanced biofuel shall not transfer the producer's
eligibility for payments under this section to an advanced biofuel facility at a different
location.

(d) A producer that ceases production for any reason is ineligible to receive
payments under this section until the producer resumes production.

(e) Renewable chemical production for which payment has been received under
section 41A.17, and biomass thermal production for which payment has been received
under section 41A.18, are not eligible for payment under this section.

Subd. 2.

Payment amounts; limits.

(a) The commissioner shall make payments
to eligible producers of advanced biofuel. The amount of the payment for each eligible
producer's annual production is $2.1053 per MMbtu for advanced biofuel production from
cellulosic biomass, and $1.053 per MMbtu for advanced biofuel production from sugar or
starch at a specific location for ten years after the start of production.

(b) Total payments under this section to an eligible biofuel producer in a fiscal
year may not exceed the amount necessary for 2,850,000 MMbtu of biofuel production.
Total payments under this section to all eligible biofuel producers in a fiscal year may
not exceed the amount necessary for 17,100,000 MMbtu of biofuel production. The
commissioner shall award payments on a first-come, first-served basis within the limits of
available funding.

(c) For purposes of this section, an entity that holds a controlling interest in more
than one advanced biofuel facility is considered a single eligible producer.

Subd. 3.

Perennial and cover crops required.

To be eligible for payment under
this section, a producer that produces advanced biofuel from agricultural cellulosic
biomass other than corn kernel fiber or biogas must derive at least the following portions
of the producer's total eligible MMbtus from perennial crop or cover crop biomass:

(1) ten percent during the first two years of eligible production;

(2) 30 percent during the third and fourth years of eligible production; and

(3) 50 percent during the fifth through tenth years of eligible production.

Subd. 4.

Cellulosic forestry biomass requirements.

All forestry-derived cellulosic
biomass must be produced using Minnesota state biomass harvesting guidelines or the
equivalent. All biomass from brushlands must be produced using Minnesota brushland
harvesting biomass harvest guidelines or the equivalent. Forestry-derived cellulosic
biomass that comes from land parcels greater than 160 acres must be certified by the Forest
Stewardship Council, Sustainable Forestry Initiative, or American Tree Farm System.
Uncertified land from parcels of 160 acres or less and federal land must be harvested by
a logger who has completed training for biomass harvesting from the Minnesota logger
education program or the equivalent and have a forest stewardship plan.

Subd. 5.

Agricultural cellulosic biomass sourcing plan.

(a) An eligible producer
who utilizes agricultural cellulosic biomass must submit a responsible biomass sourcing
plan for approval by the commissioner prior to applying for payments under this section.
The commissioner shall make the plan publicly available. The plan must:

(1) provide a detailed explanation of how agricultural cellulosic biomass will be
produced and managed in a way that preserves soil quality, does not increase soil and
nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts
on wildlife habitat, and reduces greenhouse gas emissions;

(2) include the producer's approach to verifying that biomass suppliers are following
the plan;

(3) discuss how new technologies and practices that are not yet commercially viable
may be encouraged and adopted during the life of the facility, and how the producer will
encourage continuous improvement during the life of the project;

(4) include specific numeric goals and timelines for making progress;

(5) require agronomic practices that result in a positive Natural Resources
Conservation Service Soil Conditioning Index score for acres from which biomass from
corn stover will be harvested; and

(6) include biennial soil sampling to verify maintained or increased levels of soil
organic matter.

(b) An eligible producer who utilizes agricultural cellulosic biomass and receives
payments under this section shall submit an annual report on the producer's responsible
biomass sourcing plan to the commissioner by January 15 each year. The report must
include data on progress made by the producer in meeting specific goals laid out in the
plan. The commissioner shall make the report publicly available. The commissioner shall
perform an annual review of submitted reports and may make a determination that the
producer is not following the plan based on the reports submitted. The commissioner
may take appropriate steps, including reducing or ceasing payments, until the producer
is in compliance with the plan.

Subd. 6.

Claims.

(a) By the last day of October, January, April, and July, each eligible
biofuel producer shall file a claim for payment for advanced biofuel production during the
preceding three calendar months. An eligible biofuel producer that files a claim under
this subdivision shall include a statement of the eligible biofuel producer's total advanced
biofuel production in Minnesota during the quarter covered by the claim. For each claim
and statement of total advanced biofuel production filed under this subdivision, the volume
of advanced biofuel production must be examined by a CPA firm with a valid permit to
practice under chapter 326A, in accordance with Statements on Standards for Attestation
Engagements established by the American Institute of Certified Public Accountants.

(b) The commissioner must issue payments by November 15, February 15, May 15,
and August 15. A separate payment must be made for each claim filed.

Sec. 59.

[41A.17] RENEWABLE CHEMICAL PRODUCTION INCENTIVE.

Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this program
must source at least 80 percent biobased content, as defined in section 41A.105,
subdivision 1a, clause (1), from Minnesota. If a facility is sited 50 miles or less from the
state border, biobased content must be sourced from within a 100-mile radius. Biobased
content must be from agricultural or forestry sources or from solid waste. The facility
must be located in Minnesota, must begin production at a specific location by June 30,
2025, and must not begin production of 3,000,000 pounds of chemicals annually before
January 1, 2015. Eligible facilities include existing companies and facilities that are
adding production capacity, or retrofitting existing capacity, as well as new companies and
facilities. Eligible renewable chemical facilities must produce at least 3,000,000 pounds
per year. Renewable chemicals produced through processes that are fully commercial
before January 1, 2000, are not eligible.

(b) No payments shall be made for renewable chemical production that occurs after
June 30, 2035, for those eligible renewable chemical producers under paragraph (a).

(c) An eligible producer of renewable chemicals shall not transfer the producer's
eligibility for payments under this section to a renewable chemical facility at a different
location.

(d) A producer that ceases production for any reason is ineligible to receive
payments under this section until the producer resumes production.

(e) Advanced biofuel production for which payment has been received under section
41A.16, and biomass thermal production for which payment has been received under
section 41A.18, are not eligible for payment under this section.

Subd. 2.

Payment amounts; bonus; limits.

(a) The commissioner shall make
payments to eligible producers of renewable chemicals located in the state. The amount of
the payment for each producer's annual production is $0.03 per pound of sugar-derived
renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of
cellulosic-derived renewable chemical produced at a specific location for ten years after
the start of production.

(b) An eligible facility producing renewable chemicals using agricultural cellulosic
biomass is eligible for a 20 percent bonus payment for each MMbtu produced from
agricultural biomass that is derived from perennial crop or cover crop biomass.

(c) Total payments under this section to an eligible renewable chemical producer in
a fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable
chemical production. Total payments under this section to all eligible renewable chemical
producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of
renewable chemical production. The commissioner shall award payments on a first-come,
first-served basis within the limits of available funding.

(d) For purposes of this section, an entity that holds a controlling interest in more
than one renewable chemical production facility is considered a single eligible producer.

Subd. 3.

Cellulosic biomass requirements.

All forestry-derived cellulosic biomass
must be produced using Minnesota state biomass harvesting guidelines or the equivalent.
All cellulosic biomass from brushlands must be produced using Minnesota brushland
harvesting biomass harvest guidelines or the equivalent. Forestry-derived cellulosic
biomass that comes from land parcels greater than 160 acres must be certified by the Forest
Stewardship Council, Sustainable Forestry Initiative, or American Tree Farm System.
Uncertified land from parcels of 160 acres or less and federal land must be harvested by
a logger who has completed training for biomass harvesting from the Minnesota logger
education program or the equivalent and have a forest stewardship plan.

Subd. 4.

Agricultural cellulosic biomass sourcing plan.

(a) An eligible producer
who utilizes agricultural cellulosic biomass must submit a responsible biomass sourcing
plan to the commissioner prior to applying for payments under this section. The plan must:

(1) provide a detailed explanation of how agricultural cellulosic biomass will be
produced and managed in a way that preserves soil quality, does not increase soil and
nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts
on wildlife habitat, and reduces greenhouse gas emissions;

(2) include the producer's approach to verifying that biomass suppliers are following
the plan;

(3) discuss how new technologies and practices that are not yet commercially viable
may be encouraged and adopted during the life of the facility, and how the producer will
encourage continuous improvement during the life of the project; and

(4) include specific numeric goals and timelines for making progress.

(b) An eligible producer who utilizes agricultural cellulosic biomass and receives
payments under this section shall submit an annual report on the producer's responsible
biomass sourcing plan to the commissioner by January 15 each year. The report must
include data on progress made by the producer in meeting specific goals laid out in the
plan. The commissioner shall make the report publicly available. The commissioner shall
perform an annual review of submitted reports and may make a determination that the
producer is not following the plan based on the reports submitted. The commissioner
may take appropriate steps, including reducing or ceasing payments, until the producer
is in compliance with the plan.

Subd. 5.

Claims.

(a) By the last day of October, January, April, and July, each
eligible renewable chemical producer shall file a claim for payment for renewable
chemical production during the preceding three calendar months. An eligible renewable
chemical producer that files a claim under this subdivision shall include a statement of
the eligible producer's total renewable chemical production in Minnesota during the
quarter covered by the claim. For each claim and statement of total renewable chemical
production filed under this paragraph, the volume of renewable chemical production
must be examined by a CPA firm with a valid permit to practice under chapter 326A, in
accordance with Statements on Standards for Attestation Engagements established by the
American Institute of Certified Public Accountants.

(b) The commissioner must issue payments by November 15, February 15, May 15,
and August 15. A separate payment must be made for each claim filed.

Sec. 60.

[41A.18] BIOMASS THERMAL PRODUCTION INCENTIVE.

Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or
less from the state border, raw materials should be sourced from within a 100-mile radius.
Raw materials must be from agricultural or forestry sources. The facility must be located
in Minnesota, must have begun production at a specific location by June 30, 2025, and
must not begin before July 1, 2015. Eligible facilities include existing companies and
facilities that are adding production capacity, or retrofitting existing capacity, as well as
new companies and facilities. Eligible biomass thermal production facilities must produce
at least 1,000 MMbtu per year.

(b) No payments shall be made for biomass thermal production that occurs after June
30, 2035, for those eligible biomass thermal producers under paragraph (a).

(c) An eligible producer of biomass thermal production shall not transfer the
producer's eligibility for payments under this section to a biomass thermal production
facility at a different location.

(d) A producer that ceases production for any reason is ineligible to receive
payments under this section until the producer resumes production.

(e) Biofuel production for which payment has been received under section 41A.16,
and renewable chemical production for which payment has been received under section
41A.17, are not eligible for payment under this section.

Subd. 2.

Payment amounts; bonus; limits; blending.

(a) The commissioner shall
make payments to eligible producers of biomass thermal located in the state. The amount
of the payment for each producer's annual production is $5.00 per MMbtu of biomass
thermal production produced at a specific location for ten years after the start of production.

(b) An eligible facility producing biomass thermal using agricultural cellulosic
biomass is eligible for a 20 percent bonus payment for each MMbtu produced from
agricultural biomass that is derived from perennial crop or cover crop biomass.

(c) Total payments under this section to an eligible thermal producer in a fiscal
year may not exceed the amount necessary for 30,000 MMbtu of thermal production.
Total payments under this section to all eligible thermal producers in a fiscal year may
not exceed the amount necessary for 150,000 MMbtu of total thermal production. The
commissioner shall award payments on a first-come, first-served basis within the limits of
available funding.

(d) An eligible facility may blend a cellulosic feedstock with other fuels in the
biomass thermal production facility, but only the percentage attributable to cellulosic
material is eligible to receive payment.

(e) For purposes of this section, an entity that holds a controlling interest in more
than one biomass thermal production facility is considered a single eligible producer.

Subd. 3.

Cellulosic biomass requirements.

All forestry-derived cellulosic biomass
must be produced using Minnesota state biomass harvesting guidelines or the equivalent.
All biomass from brushland must be produced using Minnesota brushland harvesting
biomass guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from
land parcels greater than 160 acres must be certified by the Forest Stewardship Council,
the Sustainable Forestry Initiative, or American Tree Farm. Uncertified land from parcels
of 160 acres or less and federal land must be harvested by a logger who has completed
training for biomass harvesting from the Minnesota logger education program or the
equivalent and have a forest stewardship plan.

Subd. 4.

Agricultural cellulosic biomass sourcing plan.

(a) An eligible producer
who utilizes agricultural cellulosic biomass must submit a responsible biomass sourcing
plan to the commissioner prior to applying for payments under this section. The plan must:

(1) provide a detailed explanation of how agricultural cellulosic biomass will be
produced and managed in a way that preserves soil quality, does not increase soil and
nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts
on wildlife habitat, and reduces greenhouse gas emissions;

(2) include the producer's approach to verifying that biomass suppliers are following
the plan;

(3) discuss how new technologies and practices that are not yet commercially viable
may be encouraged and adopted during the life of the facility, and how the producer will
encourage continuous improvement during the life of the project; and

(4) include specific numeric goals and timelines for making progress.

(b) An eligible producer who utilizes agricultural cellulosic biomass and receives
payments under this section shall submit an annual report on the producer's responsible
biomass sourcing plan to the commissioner by January 15 each year. The report must
include data on progress made by the producer in meeting specific goals laid out in the
plan. The commissioner shall make the report publicly available. The commissioner shall
perform an annual review of submitted reports and may make a determination that the
producer is not following the plan based on the reports submitted. The commissioner
may take appropriate steps, including reducing or ceasing payments, until the producer
is in compliance with the plan.

Subd. 5.

Claims.

(a) By the last day of October, January, April, and July, each
producer shall file a claim for payment for biomass thermal production during the
preceding three calendar months. A producer that files a claim under this subdivision shall
include a statement of the producer's total biomass thermal production in Minnesota
during the quarter covered by the claim. For each claim and statement of total biomass
thermal production filed under this paragraph, the volume of biomass thermal production
must be examined by a CPA firm with a valid permit to practice under chapter 326A, in
accordance with Statements on Standards for Attestation Engagements established by the
American Institute of Certified Public Accountants.

(b) The commissioner must issue payments by November 15, February 15, May 15,
and August 15. A separate payment shall be made for each claim filed.

Sec. 61.

[41A.19] REPORT; INCENTIVE PROGRAMS.

By January 15 each year, the commissioner shall report on the incentive programs
under sections 41A.16, 41A.17, and 41A.18 to the legislative committees with jurisdiction
over environment and agriculture policy and finance. The report shall include information
on production and incentive expenditures under the programs.

Sec. 62.

Minnesota Statutes 2014, section 41B.03, subdivision 6, is amended to read:


Subd. 6.

Application fee.

The authority may impose a reasonable nonrefundable
application fee for each application submitted for a beginning farmer loan or a
seller-sponsored loan. The application fee is initially $50. The authority may review the
fee annually and make adjustments as necessary. The fee must be deposited in the state
treasury and credited to an account in the special revenue fund. Money in the account is
appropriated to the commissioner for administrative expenses of the beginning farmer
and seller-sponsored loan programs
the Rural Finance Authority administrative account
established in subdivision 7
.

Sec. 63.

Minnesota Statutes 2014, section 41B.03, is amended by adding a subdivision
to read:


Subd. 7.

Rural Finance Authority administrative account.

There is established
in the agricultural fund a Rural Finance Authority administrative account. Money in the
account, including interest, is appropriated to the commissioner of agriculture for the
administrative expenses of the loan programs administered by the Rural Finance Authority.

Sec. 64.

Minnesota Statutes 2014, section 41B.04, subdivision 17, is amended to read:


Subd. 17.

Application and origination fee.

The authority may impose a reasonable
nonrefundable application fee for each application and an origination fee for each loan
issued under the loan restructuring program. The origination fee is 1.5 percent of the
authority's participation interest in the loan and the application fee is $50. The authority
may review the fees annually and make adjustments as necessary. The fees must be
deposited in the state treasury and credited to an account in the special revenue fund.
Money in the account is appropriated to the commissioner for administrative expenses
of the loan restructuring program
the Rural Finance Authority administrative account
established in section 41B.03
.

Sec. 65.

Minnesota Statutes 2014, section 41B.043, subdivision 3, is amended to read:


Subd. 3.

Application and origination fee.

The authority may impose a reasonable
nonrefundable application fee for each application submitted for a participation issued
under the agricultural improvement loan program. The application fee is initially $50. The
authority may review the fees annually and make adjustments as necessary. The fees must
be deposited in the state treasury and credited to an account in the special revenue fund.
Money in this account is appropriated to the commissioner for administrative expenses of
the agricultural improvement loan program
the Rural Finance Authority administrative
account established in section 41B.03
.

Sec. 66.

Minnesota Statutes 2014, section 41B.045, subdivision 3, is amended to read:


Subd. 3.

Specifications.

No loan may be made to refinance an existing debt. Each
loan participation must be secured by a mortgage on real property and such other security
as the authority may require.

Sec. 67.

Minnesota Statutes 2014, section 41B.045, subdivision 4, is amended to read:


Subd. 4.

Application and origination fee.

The authority may impose a reasonable
nonrefundable application fee for each application for a loan participation and an
origination fee for each loan issued under the livestock expansion loan program. The
origination fee initially shall be set at 1.5 percent and the application fee at $50. The
authority may review the fees annually and make adjustments as necessary. The fees must
be deposited in the state treasury and credited to an account in the special revenue fund.
Money in this account is appropriated to the commissioner for administrative expenses of
the livestock expansion loan program
the Rural Finance Authority administrative account
established in section 41B.03
.

Sec. 68.

Minnesota Statutes 2014, section 41B.046, subdivision 5, is amended to read:


Subd. 5.

Loans.

(a) The authority may participate in a stock loan with an eligible
lender to a farmer who is eligible under subdivision 4. Participation is limited to 45
percent of the principal amount of the loan or $40,000, whichever is less. The interest
rates and repayment terms of the authority's participation interest may differ from the
interest rates and repayment terms of the lender's retained portion of the loan, but the
authority's interest rate must not exceed 50 percent of the lender's interest rate.

(b) No more than 95 percent of the purchase price of the stock may be financed
under this program.

(c) Security for stock loans must be the stock purchased, a personal note executed by
the borrower, and whatever other security is required by the eligible lender or the authority.

(d) The authority may impose a reasonable nonrefundable application fee for each
application for a stock loan. The authority may review the fee annually and make
adjustments as necessary. The application fee is initially $50. Application fees received
by the authority must be deposited in the revolving loan account established in section
41B.06
Rural Finance Authority administrative account established in section 41B.03.

(e) Stock loans under this program will be made using money in the revolving
loan account established in section 41B.06.

(f) The authority may not grant stock loans in a cumulative amount exceeding
$2,000,000 for the financing of stock purchases in any one cooperative.

(g) Repayments of financial assistance under this section, including principal and
interest, must be deposited into the revolving loan account established in section 41B.06.

Sec. 69.

Minnesota Statutes 2014, section 41B.047, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

The authority shall establish and implement a
disaster recovery loan program to help farmers:

(1) clean up, repair, or replace farm structures and septic and water systems, as well
as replace seed, other crop inputs, feed, and livestock, when damaged by high winds,
hail, tornado, or flood; or

(2) purchase watering systems, irrigation systems, and other drought mitigation
systems and practices when drought is the cause of the purchase.;

(3) restore farmland; or

(4) replace flocks, make building improvements, and cover the loss of revenue when
the replacement, improvements, or loss of revenue is due to the confirmed presence of
the highly pathogenic avian influenza in a commercial poultry or game flock located
in Minnesota.

Sec. 70.

Minnesota Statutes 2014, section 41B.047, subdivision 3, is amended to read:


Subd. 3.

Eligibility.

To be eligible for this program, a borrower must:

(1) meet the requirements of section 41B.03, subdivision 1;

(2) certify that the damage or loss was (i) sustained within a county that was the
subject of a state or federal disaster declaration or (ii) due to the confirmed presence of
the highly pathogenic avian influenza in a commercial poultry or game flock located
in Minnesota
;

(3) demonstrate an ability to repay the loan; and

(4) have a total net worth, including assets and liabilities of the borrower's spouse
and dependents, of less than $660,000 in 2004 and an amount in subsequent years which
is adjusted for inflation by multiplying that amount by the cumulative inflation rate as
determined by the Consumer Price Index; and

(5) (4) have received at least 50 percent of average annual gross income from
farming for the past three years.

Sec. 71.

Minnesota Statutes 2014, section 41B.047, subdivision 4, is amended to read:


Subd. 4.

Loans.

(a) The authority may participate in a disaster recovery loan with
an eligible lender to a farmer who is eligible under subdivision 3. Participation is limited
to 45 percent of the principal amount of the loan or $50,000 $200,000, whichever is less.
The interest rates and repayment terms of the authority's participation interest may differ
from the interest rates and repayment terms of the lender's retained portion of the loan, but
the authority's interest rate must not exceed four percent.

(b) Standards for loan amortization shall be set by the Rural Finance Authority
not to exceed ten years.

(c) Security for the disaster recovery loans must be a personal note executed by the
borrower and whatever other security is required by the eligible lender or the authority.

(d) The authority may impose a reasonable nonrefundable application fee for a
disaster recovery loan. The authority may review the fee annually and make adjustments
as necessary. The application fee is initially $50. Application fees received by the
authority must be deposited in the revolving loan account established under section
41B.06
Rural Finance Authority administrative account established in section 41B.03.

(e) Disaster recovery loans under this program will be made using money in the
revolving loan account established under section 41B.06.

(f) Repayments of financial assistance under this section, including principal and
interest, must be deposited into the revolving loan account established under section
41B.06.

Sec. 72.

Minnesota Statutes 2014, section 41B.048, subdivision 6, is amended to read:


Subd. 6.

Loans.

(a) The authority may disburse loans through a fiscal agent to
farmers and agricultural landowners who are eligible under subdivision 5. The total
accumulative loan principal must not exceed $75,000 per loan.

(b) The fiscal agent may impose a loan origination fee in the amount of one percent
of the total approved loan. This fee is to be paid by the borrower to the fiscal agent at
the time of loan closing.

(c) The loan may be disbursed over a period not to exceed 12 years.

(d) A borrower may receive loans, depending on the availability of funds, for planted
areas up to 160 acres for up to:

(1) the total amount necessary for establishment of the crop;

(2) the total amount of maintenance costs, including weed control, during the first
three years; and

(3) 70 percent of the estimated value of one year's growth of the crop for years
four through 12.

(e) Security for the loan must be the crop, a personal note executed by the borrower, an
interest in the land upon which the crop is growing, and whatever other security is required
by the fiscal agent or the authority. All recording fees must be paid by the borrower.

(f) The authority may prescribe forms and establish an application process for
applicants to apply for a loan.

(g) The authority may impose a reasonable, nonrefundable application fee for each
application for a loan under this program. The application fee is initially $50. Application
fees received by the authority must be deposited in the revolving loan account established
under section 41B.06
Rural Finance Authority administrative account established in
section 41B.03
.

(h) Loans under the program must be made using money in the revolving loan
account established under section 41B.06.

(i) All repayments of financial assistance granted under this section, including
principal and interest, must be deposited into the revolving loan account established
under section 41B.06.

(j) The interest payable on loans made by the authority for the agroforestry loan
program must, if funded by revenue bond proceeds, be at a rate not less than the rate on the
revenue bonds, and may be established at a higher rate necessary to pay costs associated
with the issuance of the revenue bonds and a proportionate share of the cost of administering
the program. The interest payable on loans for the agroforestry loan program funded from
sources other than revenue bond proceeds must be at a rate determined by the authority.

(k) Loan principal balance outstanding plus all assessed interest must be repaid
within 120 days of harvest, but no later than 15 years from planting.

Sec. 73.

Minnesota Statutes 2014, section 41B.049, subdivision 4, is amended to read:


Subd. 4.

Loans.

(a) The authority may make a direct loan or participate in a loan
with an eligible lender to a farmer who is eligible under subdivision 3. Repayment terms
of the authority's participation interest may differ from repayment terms of the lender's
retained portion of the loan. Loans made under this section must be no-interest loans.

(b) Application for a direct loan or a loan participation must be made on forms
prescribed by the authority.

(c) Standards for loan amortization shall be set by the Rural Finance Authority
not to exceed ten years.

(d) Security for the loans must be a personal note executed by the borrower and
whatever other security is required by the eligible lender or the authority.

(e) No loan proceeds may be used to refinance a debt existing prior to application.

(f) The authority may impose a reasonable nonrefundable application fee for
each application for a direct loan or a loan participation. The authority may review the
application fees annually and make adjustments as necessary. The application fee is
initially set at $100 for a loan under subdivision 1. The fees received by the authority must
be deposited in the revolving loan account established in section 41B.06 Rural Finance
Authority administrative account established in section 41B.03
.

Sec. 74.

Minnesota Statutes 2014, section 41B.055, subdivision 3, is amended to read:


Subd. 3.

Loans.

(a) The authority may participate in a livestock equipment loan
equal to 90 percent of the purchased equipment value with an eligible lender to a farmer
who is eligible under subdivision 2. Participation is limited to 45 percent of the principal
amount of the loan or $40,000, whichever is less. The interest rates and repayment terms
of the authority's participation interest may differ from the interest rates and repayment
terms of the lender's retained portion of the loan, but the authority's interest rate must
not exceed three percent. The authority may review the interest annually and make
adjustments as necessary.

(b) Standards for loan amortization must be set by the Rural Finance Authority
and must not exceed ten years.

(c) Security for a livestock equipment loan must be a personal note executed by the
borrower and whatever other security is required by the eligible lender or the authority.

(d) Refinancing of existing debt is not an eligible purpose.

(e) The authority may impose a reasonable, nonrefundable application fee for
a livestock equipment loan. The authority may review the fee annually and make
adjustments as necessary. The initial application fee is $50. Application fees received
by the authority must be deposited in the revolving loan account established in section
41B.06
Rural Finance Authority administrative account established in section 41B.03.

(f) Loans under this program must be made using money in the revolving loan
account established in section 41B.06.

Sec. 75.

Minnesota Statutes 2014, section 41B.056, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Intermediary" means any lending institution or other organization of a for-profit
or nonprofit nature that is in good standing with the state of Minnesota that has the
appropriate business structure and trained personnel suitable to providing efficient
disbursement of loan funds and the servicing and collection of loans.

(c) "Specialty crops" means agricultural crops, such as annuals, flowers, perennials,
and other horticultural products, that are intensively cultivated.

(d) "Eligible livestock" means poultry that has been allowed access to the outside,
sheep, or goats
beef cattle, dairy cattle, swine, poultry, goats, mules, farmed cervidae,
ratitae, bison, sheep, horses, and llamas
.

Sec. 76.

[41B.057] FARM OPPORTUNITY LOAN PROGRAM.

Subdivision 1.

Establishment.

The authority shall establish a farm opportunity loan
program to provide loans that enable farmers to:

(1) add value to crops or livestock produced in Minnesota;

(2) adopt best management practices that emphasize sufficiency and self-sufficiency;

(3) reduce or improve management of agricultural inputs resulting in environmental
improvements; or

(4) increase production of on-farm energy.

Subd. 2.

Loan criteria.

(a) The farm opportunity loan program shall provide loans
for purchase of new or used equipment and installation of equipment for projects that
make environmental improvements and enhance farm profitability. The loan program
shall also be used to add value to crops or livestock produced in Minnesota by, but not
limited to, initiating or expanding livestock product processing; purchasing equipment to
initiate, upgrade, or modernize value-added agricultural businesses; or increasing farmers'
processing and aggregating capacity facilitating entry into farm-to-institution and other
markets. Eligible loan uses do not include expenses related to seeds, fertilizer, fuel, or
other operating expenses.

(b) The authority may impose a reasonable, nonrefundable application fee for a farm
opportunity loan. The authority may review the fee annually and make adjustments as
necessary. The initial application fee is $50. Application fees received by the authority
must be deposited in the Rural Finance Authority administrative account established
in section 41B.03.

(c) Loans may only be made to Minnesota residents engaged in farming. Standards
for loan amortization must be set by the Rural Finance Authority and must not exceed
ten years.

(d) The borrower must show the ability to repay the loan.

(e) Refinancing of existing debt is not an eligible expense.

(f) Loans under this program must be made using money in the revolving loan
account established in section 41B.06.

Subd. 3.

Loan participation.

The authority may participate in a farm opportunity
loan with an eligible lender, as defined in section 41B.02, subdivision 8, to a farmer or a
group of farmers on joint projects who are eligible under subdivision 2, paragraph (c),
and who are actively engaged in farming. Participation is limited to 45 percent of the
principal amount of the loan or $45,000 per individual, whichever is less. For loans to a
group made up of four or more individuals, participation is limited to 45 percent of the
principal amount of the loan or $180,000, whichever is less. The interest rate on the
loans must not exceed six percent.

Sec. 77.

Minnesota Statutes 2014, section 41B.06, is amended to read:


41B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.

There is established in the rural finance administration fund a Rural Finance
Authority revolving loan account that is eligible to receive appropriations and the transfer
of loan funds from other programs. All repayments of financial assistance granted from
this account, including principal and interest, must be deposited into this account. Interest
earned on money in the account accrues to the account, and the money in the account is
appropriated to the commissioner of agriculture for purposes of the Rural Finance Authority
livestock equipment, methane digester, disaster recovery, value-added agricultural
product, agroforestry, and agricultural microloan, and farm opportunity loan programs,
including costs incurred by the authority to establish and administer the programs.

Sec. 78.

Minnesota Statutes 2014, section 135A.52, is amended by adding a
subdivision to read:


Subd. 6.

Farm business management.

Minnesota State Colleges and Universities
campuses that offer farm business management may specify space availability in the
delivery of farm business management courses.

Sec. 79.

Minnesota Statutes 2014, section 375.30, subdivision 2, is amended to read:


Subd. 2.

Wild hemp.

A county board, by resolution, may appropriate and spend
money as necessary to spray and otherwise eradicate wild hemp, commonly known as
marijuana,
on private property within the county. The county board may authorize the
use of county equipment, personnel and supplies and materials to spray or otherwise
eradicate wild hemp on private property, and may pro rate the expenses involved between
the county and owner or occupant of the property. Industrial hemp grown by a person
licensed under chapter 18K is not wild hemp.

Sec. 80.

Minnesota Statutes 2014, section 500.24, subdivision 4, is amended to read:


Subd. 4.

Reports.

(a) The chief executive officer of every pension or investment
fund, corporation, limited partnership, limited liability company, or entity that is seeking
to qualify for an exemption from the commissioner, and the trustee of a family farm trust
that holds any interest in agricultural land or land used for the breeding, feeding, pasturing,
growing, or raising of livestock, dairy or poultry, or products thereof, or land used for
the production of agricultural crops or fruit or other horticultural products, other than a
bona fide encumbrance taken for purposes of security, or which is engaged in farming
or proposing to commence farming in this state after May 20, 1973, shall file with the
commissioner a report containing the following information and documents:

(1) the name of the pension or investment fund, corporation, limited partnership, or
limited liability company and its place of incorporation, certification, or registration;

(2) the address of the pension or investment plan headquarters or of the registered
office of the corporation in this state, the name and address of its registered agent in this state
and, in the case of a foreign corporation, limited partnership, or limited liability company,
the address of its principal office in its place of incorporation, certification, or registration;

(3) the acreage and location listed by quarter-quarter section, township, and county
of each lot or parcel of agricultural land or land used for the keeping or feeding of poultry
in this state owned or leased by the pension or investment fund, limited partnership,
corporation, or limited liability company;

(4) the names and addresses of the officers, administrators, directors, or trustees of
the pension or investment fund, or of the officers, shareholders owning more than ten
percent of the stock, including the percent of stock owned by each such shareholder, the
members of the board of directors of the corporation, and the members of the limited
liability company, and the general and limited partners and the percentage of interest in
the partnership by each partner;

(5) the farm products which the pension or investment fund, limited partnership,
corporation, or limited liability company produces or intends to produce on its agricultural
land;

(6) with the first report, a copy of the title to the property where the farming operations
are or will occur indicating the particular exception claimed under subdivision 3; and

(7) with the first or second report, a copy of the conservation plan proposed by the
soil and water conservation district, and with subsequent reports a statement of whether
the conservation plan was implemented.

The report of a corporation, trust, limited liability company, or partnership seeking
to qualify hereunder as a family farm corporation, an authorized farm corporation, an
authorized livestock farm corporation, a family farm partnership, an authorized farm
partnership, a family farm limited liability company, an authorized farm limited liability
company, or a family farm trust or under an exemption from the commissioner shall
contain the following additional information: the number of shares, partnership interests,
or governance and financial rights owned by persons or current beneficiaries of a family
farm trust residing on the farm or actively engaged in farming, or their relatives within
the third degree of kindred according to the rules of the civil law or their spouses; the
name, address, and number of shares owned by each shareholder, partnership interests
owned by each partner or governance and financial rights owned by each member, and a
statement as to percentage of gross receipts of the corporation derived from rent, royalties,
dividends, interest, and annuities. No pension or investment fund, limited partnership,
corporation, or limited liability company shall commence farming in this state until the
commissioner has inspected the report and certified that its proposed operations comply
with the provisions of this section.

(b) Every pension or investment fund, limited partnership, trust, corporation, or
limited liability company as described in paragraph (a) shall, prior to April 15 of each
year, file with the commissioner a report containing the information required in paragraph
(a), based on its operations in the preceding calendar year and its status at the end of the
year. A pension or investment fund, limited partnership, corporation, or limited liability
company that does not file the report by April 15 must pay a $500 civil penalty. The
penalty is a lien on the land being farmed under subdivision 3 until the penalty is paid.

(c) The commissioner may, for good cause shown, issue a written waiver or
reduction of the civil penalty for failure to make a timely filing of the annual report
required by this subdivision. The waiver or reduction is final and conclusive with respect
to the civil penalty, and may not be reopened or modified by an officer, employee, or
agent of the state, except upon a showing of fraud or malfeasance or misrepresentation
of a material fact. The report required under paragraph (b) must be completed prior to a
reduction or waiver under this paragraph. The commissioner may enter into an agreement
under this paragraph only once for each corporation or partnership.

(d) All reports required by paragraph (a) shall include a filing fee of $15. The fee
must be deposited in the state treasury and credited to an account in the agricultural fund.
Money in the account, including interest, is appropriated to the commissioner for the
administrative expenses of this section.

(d) (e) Failure to file a required report or the willful filing of false information is a
gross misdemeanor.

Sec. 81.

Minnesota Statutes 2014, section 583.215, is amended to read:


583.215 EXPIRATION.

Sections 336.9-601, subsections (h) and (i); 550.365; 559.209; 582.039; and 583.20
to 583.32, expire June 30, 2016 2017.

EFFECTIVE DATE.

This section is effective May 23, 2016, if the legislature does
not meet in regular session in calendar year 2016 before May 23, 2016. If the legislature
meets in regular session in calendar year 2016 before May 23, 2016, this section is void.

Sec. 82.

Laws 2014, chapter 312, article 12, section 3, is amended to read:


Sec. 3. AGRICULTURE.

$
-0-
$
2,750,000

$2,000,000 in 2015 is for a grant to Second
Harvest Heartland on behalf of the six
Feeding America food banks that serve
Minnesota to compensate agricultural
producers and processors for costs incurred
to harvest and package for transfer surplus
fruits, vegetables, or other agricultural
commodities that would otherwise go
unharvested or, be discarded, or be sold in
a secondary market
. Surplus commodities
must be distributed statewide to food
shelves and other charitable organizations
that are eligible to receive food from the
food banks. Surplus food acquired under
this appropriation must be from Minnesota
producers and processors. Second Harvest
Heartland must report when required by, and
in the form prescribed by, the commissioner.
For fiscal year 2015, Second Harvest
Heartland may use up to 11 percent of any
grant received for administrative expenses
and up to four percent of the grant for
transportation expenses
. For fiscal years
2016 and 2017, Second Harvest Heartland
may use up to five percent of any grant
received for administrative expenses.
This
is a onetime appropriation and is available
until June 30, 2017.

The commissioner shall examine how other
states are implementing the industrial hemp
research authority provided in Public Law
113-79 and gauge the interest of Minnesota
higher education institutions. No later
than January 15, 2015, the commissioner
must report the information and items for
legislative consideration to the legislative
committees with jurisdiction over agriculture
policy and finance.

$350,000 in 2015 is for an increase in retail
food handler inspections.

$200,000 in 2015 is added to the
appropriation in Laws 2013, chapter 114,
article 1, section 3, subdivision 4, for
distribution to the state's county fairs. This is
a onetime appropriation.

$200,000 in 2015 is for a grant as determined
by the commissioner to a public higher
education institution to research porcine
epidemic diarrhea virus. This is a onetime
appropriation and is available until June 30,
2017.

Sec. 83. LIVESTOCK INDUSTRY STUDY.

The commissioner of agriculture must identify causes of the relative growth or
decline in the number of head of poultry and livestock produced in Minnesota, Iowa,
North Dakota, South Dakota, Wisconsin, and Nebraska over the last ten years, including
but not limited to the impact of nuisance conditions and lawsuits filed against poultry or
livestock farms. No later than February 1, 2016, the commissioner must report findings
by poultry and livestock sector and provide recommendations on how to strengthen and
expand Minnesota animal agriculture to the legislative committees with jurisdiction over
agriculture policy and finance.

Sec. 84.

CORRECTIONAL FACILITY VOCATIONAL TRAINING PILOT
PROGRAM.

Subdivision 1.

Pilot program.

The commissioner of agriculture must coordinate
a pilot program operated by the Northeast Regional Corrections Center to train inmates
for careers as meat cutters upon release. The commissioner must facilitate program
development and ensure that the program prepares inmates to meet applicable food safety
and licensure requirements.

Subd. 2.

Program development.

In facilitating development of the pilot program,
the commissioner must consult with the commissioner of employment and economic
development and a representative of each of the following organizations:

(1) Northeast Regional Corrections Center; and

(2) United Food and Commercial Workers.

Subd. 3.

Report required.

No later than February 1, 2017, the commissioner must
report on the progress and outcomes of the program to the legislative committees with
jurisdiction over agriculture, economic development, higher education, and public safety.

Subd. 4.

Expiration.

This section expires on June 30, 2017.

Sec. 85. URBAN AGRICULTURE DEVELOPMENT PROPOSAL.

The commissioner of agriculture must convene interested stakeholders and develop
a proposal to effectively and efficiently promote urban agriculture in Minnesota cities.
For purposes of this section, "urban agriculture" means producing agricultural plants,
poultry, or livestock on public or private property within city limits. No later than January
15, 2016, the commissioner must report to the legislative committees with jurisdiction
over agriculture policy and finance and submit proposed legislation that includes a new
definition of urban agriculture if the commissioner and stakeholders determine that a
different definition more accurately defines urban agriculture.

Sec. 86. BALANCES TRANSFERRED; ACCOUNTS ABOLISHED.

The balances in the accounts created under Minnesota Statutes, sections 41B.03,
subdivision 6; 41B.04, subdivision 17; 41B.043, subdivision 3; and 41B.045, subdivision
4, are transferred to the Rural Finance Authority administrative account established under
Minnesota Statutes, section 41B.03, subdivision 7, and the original accounts are abolished.

The balance in the account created under Minnesota Statutes, section 17.115,
is transferred to the Rural Finance Authority revolving loan account established under
Minnesota Statutes, section 41B.06, and the original account is abolished.

Sec. 87. REPEALER.

Minnesota Statutes 2014, sections 17.115; 28A.15, subdivisions 9 and 10; and
116V.03,
are repealed.

ARTICLE 3

ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS

Section 1. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.

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

APPROPRIATIONS
Available for the Year
Ending June 30
2016
2017

Sec. 2. POLLUTION CONTROL AGENCY

Subdivision 1.

Total Appropriation

$
94,582,000
$
91,784,000
Appropriations by Fund
2016
2017
General
6,395,000
5,727,000
State Government
Special Revenue
75,000
75,000
Environmental
73,480,000
74,548,000
Remediation
14,632,000
11,434,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

The commissioner must present the agency's
biennial budget for fiscal years 2018 and
2019 to the legislature in a transparent way
by agency division, including the proposed
budget bill and presentations of the budget to
committees and divisions with jurisdiction
over the agency's budget.

Subd. 2.

Water

26,388,000
26,081,000
Appropriations by Fund
2016
2017
General
4,307,000
3,627,000
State Government
Special Revenue
75,000
75,000
Environmental
22,006,000
22,379,000

$1,959,000 the first year and $1,959,000
the second year are for grants to delegated
counties to administer the county feedlot
program under Minnesota Statutes, section
116.0711, subdivisions 2 and 3. Money
remaining after the first year is available for
the second year.

$753,000 the first year and $765,000 the
second year are from the environmental
fund to address the need for continued
increased activity in the areas of new
technology review, technical assistance
for local governments, and enforcement
under Minnesota Statutes, sections 115.55
to 115.58, and to complete the requirements
of Laws 2003, chapter 128, article 1, section
165.

$673,000 the first year and $683,000 the
second year are from the environmental
fund for subsurface sewage treatment
system (SSTS) program administration
and community technical assistance and
education, including grants and technical
assistance to communities for water quality
protection. Of this amount, $129,000 each
year is for assistance to counties through
grants for SSTS program administration.
A county receiving a grant from this
appropriation shall submit the results
achieved with the grant to the commissioner
as part of its annual SSTS report. Any
unexpended balance in the first year does not
cancel but is available in the second year.

$107,000 the first year and $109,000 the
second year are from the environmental fund
for registration of wastewater laboratories.

$913,000 the first year and $913,000 the
second year are from the environmental fund
to continue perfluorochemical biomonitoring
in eastern metropolitan communities, as
recommended by the Environmental Health
Tracking and Biomonitoring Advisory Panel,
and address other environmental health risks,
including air quality. The communities must
include Hmong and other immigrant farming
communities. Of this amount, up to $677,000
the first year and $677,000 the second year
are for transfer to the Department of Health.

$250,000 the first year and $250,000 the
second year are from the general fund for:

(1) a municipal liaison to assist municipalities
in implementing and participating in the
water quality standards rulemaking process
and navigating the NPDES/SDS permitting
process;

(2) enhanced economic analysis in the
water quality standards rulemaking process,
including more specific analysis and
identification of cost-effective permitting;

(3) development of statewide economic
analyses and templates to reduce the
amount of information and time required for
municipalities to apply for variances from
water quality standards; and

(4) coordinating with the Public Facilities
Authority to identify and advocate for
the resources needed for municipalities to
achieve permit requirements.

$500,000 the first year is for independent
peer reviews under Minnesota Statutes,
section 115.035, and cost analyses of water
quality standards and rules. A portion of
this appropriation may be transferred to the
commissioner of management and budget for
water quality standards cost analyses.

$200,000 the first year is for a grant to
the Red River Basin Commission for
development of a water quality strategic plan
for the Red River of the North. This is a
onetime appropriation and is available until
June 30, 2018. The plan must include, but is
not limited to, consistency in water quality
goals and objectives for the Red River of the
North and pollution reduction allocations for
both point and nonpoint sources on the Red
River of the North and for individual major
watersheds tributary to the Red River of the
North. The Red River Basin Commission
must involve the interests of local, state, and
federal government, business and industry,
environmental groups, and Red River
Basin landowners. The Red River Basin
Commission must report progress on the plan
to the house of representatives and senate
committees and divisions with jurisdiction
over environment policy and finance by
February 15 in 2016 and 2017, and must
submit the completed plan by December 31,
2017.

Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered on or
before June 30, 2017, as grants or contracts
for subsurface sewage treatment systems,
surface water and groundwater assessments,
total maximum daily loads, storm water, and
water quality protection in this subdivision
are available until June 30, 2020.

Subd. 3.

Air

15,640,000
16,087,000
Appropriations by Fund
2016
2017
Environmental
15,640,000
16,087,000

$202,000 the first year and $204,000 the
second year are from the environmental fund
for a monitoring program under Minnesota
Statutes, section 116.454.

Up to $150,000 the first year and $150,000
the second year may be transferred from the
environmental fund to the small business
environmental improvement loan account
established in Minnesota Statutes, section
116.993.

$340,000 the first year and $346,000 the
second year are from the environmental fund
for monitoring ambient air for hazardous
pollutants.

$691,000 the first year and $693,000 the
second year are from the environmental fund
for emission reduction activities and grants to
small businesses and other nonpoint emission
reduction efforts. Of this amount, $100,000
the first year and $100,000 the second year is
to continue work with Clean Air Minnesota,
and the commissioner may enter into an
agreement with Environmental Initiative
to support this effort. Any unexpended
balance in the first year does not cancel but is
available in the second year.

Subd. 4.

Land

21,663,000
18,584,000
Appropriations by Fund
2016
2017
Environmental
7,031,000
7,150,000
Remediation
14,632,000
11,434,000

All money for environmental response,
compensation, and compliance in the
remediation fund not otherwise appropriated
is appropriated to the commissioners of the
Pollution Control Agency and agriculture
for purposes of Minnesota Statutes, section
115B.20, subdivision 2, clauses (1), (2),
(3), (6), and (7). At the beginning of each
fiscal year, the two commissioners shall
jointly submit an annual spending plan
to the commissioner of management and
budget that maximizes the utilization of
resources and appropriately allocates the
money between the two departments. This
appropriation is available until June 30, 2017.

$4,279,000 the first year and $4,343,000 the
second year are from the remediation fund
for purposes of the leaking underground
storage tank program to investigate, clean up,
and prevent future releases from underground
petroleum storage tanks, and to the petroleum
remediation program for purposes of vapor
assessment and remediation. These same
annual amounts are transferred from the
petroleum tank fund to the remediation fund.

$252,000 the first year and $252,000 the
second year are from the remediation fund
for transfer to the commissioner of health for
private water supply monitoring and health
assessment costs in areas contaminated
by unpermitted mixed municipal solid
waste disposal facilities and drinking water
advisories and public information activities
for areas contaminated by hazardous releases.

$743,000 the first year is transferred from the
general account in the remediation fund to
the dry cleaner environmental response and
reimbursement account in the remediation
fund for the purpose of remediating
land contaminated by a release from a
dry cleaning facility, as provided under
Minnesota Statutes, section 115B.50. The
commissioner shall prioritize expenditures
from this transfer to address contaminated
sites that pose the greatest risk to public
health or welfare or to the environment, as
established in Minnesota Statutes, section
115B.17, subdivision 13. This is a onetime
transfer. The commissioner shall reimburse
only a person who otherwise would not be
responsible for a release or threatened release
under Minnesota Statutes, section 115B.03,
for all but $10,000 of the environmental
response costs incurred by the person if the
commissioner determines that the costs are
reasonable and were actually incurred. To be
eligible for reimbursement from this transfer,
a person seeking reimbursement must make
a request to the commissioner, as required
under Minnesota Statutes, section 115B.50,
subdivision 2, on or before the day following
final enactment of this act.

$868,000 the first year is from the remediation
fund for a grant to the city of Mountain Iron
for remediation of the abandoned wastewater
treatment pond of the former Nichols
Township. This is a onetime appropriation
that is available until June 30, 2019.

Subd. 5.

Environmental Assistance and
Cross-Media

30,891,000
31,032,000
Appropriations by Fund
2016
2017
Environmental
28,803,000
28,932,000
General
2,088,000
2,100,000

$17,250,000 the first year and $17,250,000
the second year are from the environmental
fund for SCORE block grants to counties.

$119,000 the first year and $119,000 the
second year are from the environmental
fund for environmental assistance grants
or loans under Minnesota Statutes, section
115A.0716. Any unencumbered grant and
loan balances in the first year do not cancel
but are available for grants and loans in the
second year.

$90,000 the first year and $90,000 the
second year are from the environmental fund
for duties related to harmful chemicals in
products under Minnesota Statutes, sections
116.9401 to 116.9407. Of this amount,
$57,000 each year is transferred to the
commissioner of health.

$203,000 the first year and $207,000 the
second year are from the environmental
fund for the costs of implementing general
operating permits for feedlots over 1,000
animal units.

$315,000 the first year and $319,000 the
second year are from the general fund and
$192,000 the first year and $192,000 the
second year are from the environmental fund
for Environmental Quality Board operations
and support.

$50,000 the first year and $50,000 the second
year are from the environmental fund for
transfer to the Office of Administrative
Hearings to establish sanitary districts.

$502,000 the first year and $503,000 the
second year are from the general fund for
the Environmental Quality Board to lead
an interagency team to provide technical
assistance regarding the mining, processing,
and transporting of silica sand. Of this
amount, up to $75,000 each year may be
transferred to the commissioner of natural
resources to review the implementation
of the rules adopted by the commissioner
pursuant to Laws 2013, ?chapter 114, article 4,
section 105, paragraph (b), pertaining to the
reclamation of silica sand mines, to ensure
that local government reclamation programs
are implemented in a manner consistent with
the rules.

$450,000 the first year and $450,000 the
second year are from the environmental
fund to develop and maintain systems to
support permitting and regulatory business
processes and agency data. This is a onetime
appropriation.

$1,000,000 the first year and $1,000,000 the
second year are for competitive recycling
grants under Minnesota Statutes, section
115A.565. This appropriation is available
until June 30, 2018.

$50,000 the first year and $50,000 the second
year are to acquire and co-locate waste and
recycling receptacles, in cooperation with
the commissioner of administration, at the
State Office Building. Any remaining funds
may be used for these purposes at other
facilities within the Capitol complex. This is
a onetime appropriation.

All money deposited in the environmental
fund for the metropolitan solid waste
landfill fee in accordance with Minnesota
Statutes, section 473.843, and not otherwise
appropriated, is appropriated for the purposes
of Minnesota Statutes, section 473.844.

Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered on
or before June 30, 2017, as contracts or
grants for surface water and groundwater
assessments; environmental assistance
awarded under Minnesota Statutes, section
115A.0716; technical and research assistance
under Minnesota Statutes, section 115A.152;
technical assistance under Minnesota
Statutes, section 115A.52; and pollution
prevention assistance under Minnesota
Statutes, section 115D.04, are available until
June 30, 2019.

Subd. 6.

Transfers

By June 30, 2016, the commissioner of
management and budget shall transfer
$51,308,000 from the closed landfill
investment fund to the general fund.

The commissioner of the Pollution Control
Agency shall transfer $8,100,000 in
fiscal year 2016 from the metropolitan
landfill contingency action trust account in
Minnesota Statutes, section 473.845, to the
commissioner of management and budget for
cancellation to the general fund.

Subd. 7.

Remediation Fund

The commissioner shall transfer up to
$42,000,000 from the environmental fund to
the remediation fund for the purposes of the
remediation fund under Minnesota Statutes,
section 116.155, subdivision 2.

$2,500,000 is transferred from the petroleum
tank fund to the remediation fund and
is appropriated in the first year to the
commissioner for a grant to the city of
Paynesville to add an air stripping treatment
process to a water treatment plant for
removal of volatile organic compounds. This
appropriation is effective January 1, 2016.

Sec. 3. NATURAL RESOURCES

Subdivision 1.

Total Appropriation

$
263,944,000
$
261,979,000
Appropriations by Fund
2016
2017
General
75,331,000
74,062,000
Natural Resources
84,927,000
85,603,000
Game and Fish
102,386,000
102,014,000
Remediation
1,100,000
100,000
Permanent School
200,000
200,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.

Land and Mineral Resources
Management

6,461,000
5,521,000
Appropriations by Fund
2016
2017
General
1,585,000
1,585,000
Natural Resources
3,332,000
3,392,000
Game and Fish
344,000
344,000
Remediation
1,000,000
-0-
Permanent School
200,000
200,000

$68,000 the first year and $68,000 the
second year are for minerals cooperative
environmental research, of which $34,000
the first year and $34,000 the second year are
available only as matched by $1 of nonstate
money for each $1 of state money. The
match may be cash or in-kind.

$251,000 the first year and $251,000 the
second year are for iron ore cooperative
research. Of this amount, $200,000 each year
is from the minerals management account
in the natural resources fund. $175,000 the
first year and $175,000 the second year are
available only as matched by $1 of nonstate
money for each $1 of state money. The match
may be cash or in-kind. Any unencumbered
balance from the first year does not cancel
and is available in the second year.

$2,755,000 the first year and $2,815,000
the second year are from the minerals
management account in the natural resources
fund for use as provided in Minnesota
Statutes, section 93.2236, paragraph (c),
for mineral resource management, projects
to enhance future mineral income, and
projects to promote new mineral resource
opportunities.

$200,000 the first year and $200,000 the
second year are from the state forest suspense
account in the permanent school fund to
accelerate land exchanges, land sales, and
commercial leasing of school trust lands and
to identify, evaluate, and lease construction
aggregate located on school trust lands. This
appropriation is to be used for securing
long-term economic return from the
school trust lands consistent with fiduciary
responsibilities and sound natural resources
conservation and management principles.

Notwithstanding Minnesota Statutes, section
115B.20, $1,000,000 the first year is from
the dedicated account within the remediation
fund for the purposes of Minnesota Statutes,
section 115B.20, subdivision 2, clause (4),
to acquire salt lands as described under
Minnesota Statutes, section 92.05, within
Bear Head Lake State Park. This is a onetime
appropriation and is available until June 30,
2018.

Subd. 3.

Ecological and Water Resources

32,414,000
32,167,000
Appropriations by Fund
2016
2017
General
17,526,000
17,110,000
Natural Resources
10,502,000
10,576,000
Game and Fish
4,386,000
4,481,000

$3,242,000 the first year and $3,242,000 the
second year are from the invasive species
account in the natural resources fund and
$3,206,000 the first year and $3,206,000 the
second year are from the general fund for
management, public awareness, assessment
and monitoring research, and water access
inspection to prevent the spread of invasive
species; management of invasive plants in
public waters; and management of terrestrial
invasive species on state-administered lands.

$5,000,000 the first year and $5,000,000 the
second year are from the water management
account in the natural resources fund for only
the purposes specified in Minnesota Statutes,
section 103G.27, subdivision 2.

$124,000 the first year and $124,000 the
second year are for a grant to the Mississippi
Headwaters Board for up to 50 percent of
the cost of implementing the comprehensive
plan for the upper Mississippi within areas
under the board's jurisdiction.

$10,000 the first year and $10,000 the second
year are for payment to the Leech Lake Band
of Chippewa Indians to implement the band's
portion of the comprehensive plan for the
upper Mississippi.

$264,000 the first year and $264,000 the
second year are for grants for up to 50
percent of the cost of implementation of the
Red River mediation agreement.

$2,018,000 the first year and $2,018,000
the second year are from the heritage
enhancement account in the game and
fish fund for only the purposes specified
in Minnesota Statutes, section 297A.94,
paragraph (e), clause (1).

$950,000 the first year and $950,000 the
second year are from the nongame wildlife
management account in the natural resources
fund for the purpose of nongame wildlife
management. Notwithstanding Minnesota
Statutes, section 290.431, $100,000 the first
year and $100,000 the second year may
be used for nongame wildlife information,
education, and promotion.

$6,000,000 the first year and $6,000,000 the
second year are from the general fund for the
following activities:

(1) financial reimbursement and technical
support to soil and water conservation
districts or other local units of government
for groundwater level monitoring;

(2) surface water monitoring and analysis,
including installation of monitoring gauges;

(3) groundwater analysis to assist with water
appropriation permitting decisions;

(4) permit application review incorporating
surface water and groundwater technical
analysis;

(5) precipitation data and analysis to improve
the use of irrigation;

(6) information technology, including
electronic permitting and integrated data
systems; and

(7) compliance and monitoring.

$10,000 the first year and $64,000 the
second year are to study, in cooperation
with the Board of Water and Soil Resources,
the feasibility of the state assuming
administration of the section 404 permit
program of the federal Clean Water Act
as required in this act. This is a onetime
appropriation.

$100,000 the first year is to develop
cost estimates, in cooperation with the
Metropolitan Council, for the augmentation
of White Bear Lake with water from
the Sucker Lake chain of lakes. The
commissioner must submit a report with
the cost estimates developed under this
paragraph to the chairs and ranking minority
members of the house of representatives
and senate committees and divisions with
jurisdiction over environment and natural
resources policy and finance by February 1,
2016. This is a onetime appropriation.

The commissioner of natural resources must
create a groundwater model that uses existing
data for the Bonanza Valley Groundwater
Management Area to describe the current
groundwater conditions and characterize the
nature and extent of the primary aquifers
and the relationship of surface water and
groundwater.

$400,000 the first year is for grants to assist
in the construction of flood protection rural
and farmstead ring levees in the Red River
watershed. Grants may not exceed 50 percent
of the cost of the projects. This is a onetime
appropriation and is available until June 30,
2019.

$75,000 is for a grant to the city of Virginia
for erosion control on the northeast side of
Silver Lake to protect public and private
property and infrastructure.

Subd. 4.

Forest Management

39,614,000
39,781,000
Appropriations by Fund
2016
2017
General
26,446,000
26,350,000
Natural Resources
11,881,000
12,144,000
Game and Fish
1,287,000
1,287,000

$7,145,000 the first year and $7,145,000
the second year are for prevention,
presuppression, and suppression costs of
emergency firefighting and other costs
incurred under Minnesota Statutes, section
88.12. The amount necessary to pay for
presuppression and suppression costs during
the biennium is appropriated from the general
fund.

By January 15 of each year, the commissioner
of natural resources shall submit a report to
the chairs and ranking minority members
of the house and senate committees
and divisions having jurisdiction over
environment and natural resources finance,
identifying all firefighting costs incurred
and reimbursements received in the prior
fiscal year. These appropriations may
not be transferred. Any reimbursement
of firefighting expenditures made to the
commissioner from any source other than
federal mobilizations shall be deposited into
the general fund.

$11,881,000 the first year and $12,144,000
the second year are from the forest
management investment account in the
natural resources fund for only the purposes
specified in Minnesota Statutes, section
89.039, subdivision 2. The base for fiscal
year 2018 and later is $11,644,000.

$1,287,000 the first year and $1,287,000
the second year are from the heritage
enhancement account in the game and fish
fund to advance ecological classification
systems (ECS) scientific management tools
for forest and invasive species management.
This appropriation is from revenue deposited
in the game and fish fund under Minnesota
Statutes, section 297A.94, paragraph (e),
clause (1).

$780,000 the first year and $780,000 the
second year are for the Forest Resources
Council for implementation of the
Sustainable Forest Resources Act.

$250,000 the first year and $250,000 the
second year are for the FORIST system.

At least $500,000 the first year is for forest
road maintenance. The commissioner
shall use the money to perform needed
maintenance on forest roads in conjunction
with timber sales.

The commissioner shall contract with a
telecommunication provider to place a cell
phone transmitter on the ranger tower on
Side Lake in St. Louis County.

Subd. 5.

Parks and Trails Management

74,064,000
73,650,000
Appropriations by Fund
2016
2017
General
24,967,000
24,427,000
Natural Resources
46,831,000
46,950,000
Game and Fish
2,266,000
2,273,000

$1,075,000 the first year and $1,075,000 the
second year are from the water recreation
account in the natural resources fund for
enhancing public water access facilities.

$5,740,000 the first year and $5,740,000 the
second year are from the natural resources
fund for state trail, park, and recreation area
operations. This appropriation is from the
revenue deposited in the natural resources
fund under Minnesota Statutes, section
297A.94, paragraph (e), clause (2).

$1,005,000 the first year and $1,005,000 the
second year are from the natural resources
fund for park and trail grants to local units of
government on land to be maintained for at
least 20 years for the purposes of the grants.
This appropriation is from the revenue
deposited in the natural resources fund
under Minnesota Statutes, section 297A.94,
paragraph (e), clause (4). Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.

$8,424,000 the first year and $8,424,000
the second year are from the snowmobile
trails and enforcement account in the
natural resources fund for the snowmobile
grants-in-aid program. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.

$1,360,000 the first year and $1,360,000
the second year are from the natural
resources fund for the off-highway vehicle
grants-in-aid program. Of this amount,
$1,210,000 each year is from the all-terrain
vehicle account; and $150,000 each year is
from the off-highway motorcycle account.
Any unencumbered balance does not cancel
at the end of the first year and is available for
the second year.

$75,000 the first year and $75,000 the second
year are from the cross-country ski account
in the natural resources fund for grooming
and maintaining cross-country ski trails in
state parks, trails, and recreation areas.

$250,000 the first year and $250,000 the
second year are from the state land and
water conservation account (LAWCON)
in the natural resources fund for priorities
established by the commissioner for eligible
state projects and administrative and
planning activities consistent with Minnesota
Statutes, section 84.0264, and the federal
Land and Water Conservation Fund Act.
Any unencumbered balance does not cancel
at the end of the first year and is available for
the second year.

$968,000 the first year and $968,000 the
second year are from the off-road vehicle
account in the natural resources fund. Of
this amount, $568,000 each year is for parks
and trails management for off-road vehicle
purposes; $325,000 each year is for the
off-road vehicle grant in aid program; and
$75,000 each year is for a new full-time
employee position or contract in northern
Minnesota to work in conjunction with the
Minnesota Four-Wheel Drive Association
to address off-road vehicle touring routes
and other issues related to off-road vehicle
activities. Of this appropriation, the $325,000
each year is onetime.

$65,000 the first year is from the water
recreation account in the natural resources
fund to cooperate with local units of
government in marking routes and
designating river accesses and campsites
under Minnesota Statutes, section 85.32.
This is a onetime appropriation and is
available until June 30, 2019.

$190,000 the first year is for a grant to the
city of Virginia for the additional cost of
supporting a trail due to the rerouting of
U.S. Highway No. 53. This is a onetime
appropriation and is available until June 30,
2019.

$50,000 the first year is for development of
a master plan for the Mississippi Blufflands
Trail, including work on possible extensions
or connections to other state or regional
trails. This is a onetime appropriation that is
available until June 30, 2017.

$61,000 from the natural resources fund the
first year is for a grant to the city of East
Grand Forks for payment under a reciprocity
agreement for the Red River State Recreation
Area.

$500,000 the first year is for restoration or
replacement of a historic trestle bridge in
Blackduck. This is a onetime appropriation
and is available until June 30, 2019.

The base for parks and trails operations in
the natural resources fund in fiscal year 2018
and thereafter is $46,450,000.

Subd. 6.

Fish and Wildlife Management

71,177,000
71,713,000
Appropriations by Fund
2016
2017
Natural Resources
1,908,000
1,912,000
Game and Fish
69,269,000
69,801,000

$8,167,000 the first year and $8,167,000
the second year are from the heritage
enhancement account in the game and fish
fund only for activities specified in Minnesota
Statutes, section 297A.94, paragraph (e),
clause (1). Notwithstanding Minnesota
Statutes, section 297A.94, five percent of
this appropriation may be used for expanding
hunter and angler recruitment and retention.

$1,000,000 the first year and $1,000,000
the second year are from the game and
fish fund for shooting sports facility grants
under Minnesota Statutes, section 87A.10,
including grants for archery facilities. Up to
$100,000 each year is available for shooting
sports facilities on state lands. Grants must
be matched with a nonstate match, which
may include in-kind contributions. This is a
onetime appropriation and is available until
June 30, 2019.

The game and fish fund base for fish and
wildlife management in fiscal year 2018 and
thereafter is $65,619,000.

Notwithstanding Minnesota Statutes, section
84.943, $13,000 the first year and $13,000
the second year from the critical habitat
private sector matching account may be used
to publicize the critical habitat license plate
match program.

Subd. 7.

Enforcement

39,344,000
38,377,000
Appropriations by Fund
2016
2017
General
4,257,000
4,140,000
Natural Resources
10,153,000
10,309,000
Game and Fish
24,834,000
23,828,000
Remediation
100,000
100,000

$200,000 the first year is from the general
fund and $1,900,000 the first year is from the
game and fish fund are for aviation services.
This appropriation is onetime.

$1,718,000 the first year and $1,718,000 the
second year are from the general fund for
enforcement efforts to prevent the spread of
aquatic invasive species.

$1,537,000 the first year and $1,580,000
the second year are from the heritage
enhancement account in the game and
fish fund for only the purposes specified
in Minnesota Statutes, section 297A.94,
paragraph (e), clause (1).

$1,082,000 the first year and $1,082,000 the
second year are from the water recreation
account in the natural resources fund for
grants to counties for boat and water safety.
Any unencumbered balance does not cancel
at the end of the first year and is available for
the second year.

$315,000 the first year and $315,000 the
second year are from the snowmobile
trails and enforcement account in the
natural resources fund for grants to local
law enforcement agencies for snowmobile
enforcement activities. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.

$250,000 the first year and $250,000
the second year are from the all-terrain
vehicle account for grants to qualifying
organizations to assist in safety and
environmental education and monitoring
trails on public lands under Minnesota
Statutes, section 84.9011. Grants issued
under this paragraph must be issued through
a formal agreement with the organization.
By December 15 each year, an organization
receiving a grant under this paragraph shall
report to the commissioner with details on
expenditures and outcomes from the grant.
Of this appropriation, $25,000 each year
is for administration of these grants. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

$510,000 the first year and $510,000
the second year are from the natural
resources fund for grants to county law
enforcement agencies for off-highway
vehicle enforcement and public education
activities based on off-highway vehicle use
in the county. Of this amount, $498,000 each
year is from the all-terrain vehicle account;
$11,000 each year is from the off-highway
motorcycle account; and $1,000 each year
is from the off-road vehicle account. The
county enforcement agencies may use
money received under this appropriation
to make grants to other local enforcement
agencies within the county that have a high
concentration of off-highway vehicle use.
Of this appropriation, $25,000 each year
is for administration of these grants. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

Subd. 8.

Operations Support

870,000
770,000
Appropriations by Fund
2016
2017
General
550,000
450,000
Natural Resources
320,000
320,000

$320,000 the first year and $320,000 the
second year are from the natural resources
fund for grants to be divided equally between
the city of St. Paul for the Como Park Zoo
and Conservatory and the city of Duluth
for the Duluth Zoo. This appropriation
is from the revenue deposited to the fund
under Minnesota Statutes, section 297A.94,
paragraph (e), clause (5).

$300,000 the first year and $450,000 the
second year are for legal costs related to water
management. This is a onetime appropriation
and is available until June 30, 2018.

With money appropriated in this section, the
commissioner shall give preference to call
centers located in Minnesota.

Subd. 9.

Cancellation

The general fund appropriation of $1,000,000
in Laws 2014, chapter 312, article 12, section
6, subdivision 2, is canceled on July 1, 2015.

Sec. 4. BOARD OF WATER AND SOIL
RESOURCES

$
13,237,000
$
13,415,000

$3,423,000 the first year and $3,423,000 the
second year are for natural resources block
grants to local governments. Grants must be
matched with a combination of local cash or
in-kind contributions. The base grant portion
related to water planning must be matched
by an amount as specified by Minnesota
Statutes, section 103B.3369. The board may
reduce the amount of the natural resources
block grant to a county by an amount equal to
any reduction in the county's general services
allocation to a soil and water conservation
district from the county's previous year
allocation when the board determines that
the reduction was disproportionate.

$3,116,000 the first year and $3,116,000 the
second year are for grants to soil and water
conservation districts for general purposes,
nonpoint engineering, and implementation of
the reinvest in Minnesota reserve program.
Expenditures may be made from these
appropriations for supplies and services
benefiting soil and water conservation
districts. Any district receiving a grant under
this paragraph shall maintain a Web page that
publishes, at a minimum, its annual report,
annual audit, annual budget, and meeting
notices.

$1,560,000 the first year and $1,560,000 the
second year are for the following cost-share
programs:

(1) $260,000 each year is for feedlot water
quality grants for feedlots under 300 animal
units and nutrient and manure management
projects in watersheds where there are
impaired waters;

(2) $1,200,000 each year is for soil and
water conservation district cost-sharing
contracts for perennially vegetated riparian
buffers, erosion control, water retention
and treatment, and other high-priority
conservation practices; and

(3) $100,000 each year is for county
cooperative weed management programs and
to restore native plants in selected invasive
species management sites.

$800,000 the first year and $750,000
the second year are for implementation,
enforcement, and oversight of the Wetland
Conservation Act, including administration
of the wetland banking program and in-lieu
fee mechanism. The base for fiscal year 2018
and later is $761,000.

$166,000 the first year and $166,000
the second year are to provide technical
assistance to local drainage management
officials and for the costs of the Drainage
Work Group.

$100,000 the first year and $100,000
the second year are for a grant to the
Red River Basin Commission for water
quality and floodplain management,
including administration of programs. This
appropriation must be matched by nonstate
funds. If the appropriation in either year is
insufficient, the appropriation in the other
year is available for it.

$140,000 the first year and $140,000
the second year are for grants to Area
II Minnesota River Basin Projects for
floodplain management.

$8,000 the first year and $262,000 the
second year are to study, in cooperation
with the commissioner of natural resources,
the feasibility of the state assuming
administration of the section 404 permit
program of the federal Clean Water Act
as required in this act. This is a onetime
appropriation.

Notwithstanding Minnesota Statutes, section
103C.501, the board may shift cost-share
funds in this section and may adjust the
technical and administrative assistance
portion of the grant funds to leverage
federal or other nonstate funds or to address
high-priority needs identified in local water
management plans or comprehensive water
management plans.

The appropriations for grants in this
section are available until expended. If an
appropriation for grants in either year is
insufficient, the appropriation in the other
year is available for it.

The base for the board in fiscal year 2018 and
thereafter is increased by $11,000,000 for
grants to soil and water conservation districts
to implement buffer requirements.

Sec. 5. METROPOLITAN COUNCIL

$
8,740,000
$
8,740,000
Appropriations by Fund
2016
2017
General
3,070,000
3,070,000
Natural Resources
5,670,000
5,670,000

$2,870,000 the first year and $2,870,000 the
second year are for metropolitan area regional
parks operation and maintenance according
to Minnesota Statutes, section 473.351.

$5,670,000 the first year and $5,670,000 the
second year are from the natural resources
fund for metropolitan area regional parks
and trails maintenance and operations. This
appropriation is from the revenue deposited
in the natural resources fund under Minnesota
Statutes, section 297A.94, paragraph (e),
clause (3).

$200,000 the first year and $200,000 the
second year are for the Metropolitan Area
Water Supply Policy Advisory Committee
study and the Metropolitan Area Water
Supply Technical Advisory Committee
required under Minnesota Statutes, section
473.1565. This is a onetime appropriation.

Sec. 6. CONSERVATION CORPS
MINNESOTA

$
945,000
$
945,000
Appropriations by Fund
2016
2017
General
455,000
455,000
Natural Resources
490,000
490,000

Conservation Corps Minnesota may receive
money appropriated from the natural
resources fund under this section only
as provided in an agreement with the
commissioner of natural resources.

Sec. 7. ZOOLOGICAL BOARD

$
8,410,000
$
8,410,000
Appropriations by Fund
2016
2017
General
8,250,000
8,250,000
Natural Resources
160,000
160,000

$160,000 the first year and $160,000 the
second year are from the natural resources
fund from the revenue deposited under
Minnesota Statutes, section 297A.94,
paragraph (e), clause (5).

Sec. 8. SCIENCE MUSEUM

$
1,079,000
$
1,079,000

Sec. 9. ADMINISTRATION

$
300,000
$
300,000

$300,000 the first year and $300,000
the second year are from the state forest
suspense account in the permanent school
fund for the school trust lands director to
accelerate land exchanges, land sales, and
commercial leasing of school trust lands and
to identify, evaluate, and lease construction
aggregate located on school trust lands. This
appropriation is to be used for securing
long-term economic return from the
school trust lands consistent with fiduciary
responsibilities and sound natural resources
conservation and management principles.

Sec. 10. REPAYMENT; TRANSFER

The commissioner of management and
budget shall transfer $19,016,000 in fiscal
year 2018 and $19,016,000 in fiscal year
2019 from the general fund to the closed
landfill investment fund created in Minnesota
Statutes, section 115B.421.

Sec. 11.

Laws 2010, chapter 215, article 3, section 5, subdivision 4, is amended to read:


Subd. 4.

Returned Grants

Beginning July 1, 2010, all returned grant
money originating from general fund grant
programs will be deposited into individual
accounts in the special revenue fund and held
for eventual transfer back to the general fund.
On December 15, 2010, and on December
15 of each year thereafter, $310,000 of the
receipts in this special revenue fund will
be transferred to the general fund. If less
than $310,000 is available on the transfer
date, an additional transfer on June 15
sufficient to make the $310,000 annual
obligation will be made
may be used for
the purposes of Minnesota Statutes, section
103B.102, for grants to local governments
as authorized in Minnesota Statutes, section
103B.3369, or to cover onetime costs for
implementation of natural resources block
grant funded programs, including the
Wetland Conservation Act, wetland banking,
shoreland management, and local water
management programs
.

Sec. 12.

Laws 2014, chapter 312, article 12, section 6, subdivision 5, is amended to read:


Subd. 5.

Fish and Wildlife
Management

-0-
2,412,000

$3,000 in 2015 is from the heritage
enhancement account in the game and fish
fund for a report on aquatic plant management
permitting policies for the management
of narrow-leaved and hybrid cattail in a
range of basin types across the state. The
report shall be submitted to the chairs and
ranking minority members of the house of
representatives and senate committees with
jurisdiction over environment and natural
resources by December 15, 2014, and include
recommendations for any necessary changes
in statutes, rules, or permitting procedures.
This is a onetime appropriation.

$9,000 in 2015 is from the game and fish
fund for the commissioner, in consultation
with interested parties, agencies, and other
states, to develop a detailed restoration plan
to recover the historical native population of
bobwhite quail in Minnesota for its ecological
and recreational benefits to the citizens of the
state. The commissioner shall conduct public
meetings in developing the plan. No later
than January 15, 2015, the commissioner
must report on the plan's progress to the
legislative committees with jurisdiction over
environment and natural resources policy
and finance. This is a onetime appropriation.

$2,000,000 in 2015 is from the game and
fish fund for shooting sports facility grants
under Minnesota Statutes, section 87A.10.
The commissioner may spend up to $50,000
of this appropriation to administer the grant.
This is a onetime appropriation and is
available until June 30, 2017.

$400,000 in 2015 is from the heritage
enhancement account in the game and fish
fund for hunter and angler recruitment
and retention activities and
grants to local
chapters of Let's Go Fishing of Minnesota
to provide community outreach to senior
citizens, youth, and veterans and for the costs
associated with establishing and recruiting
new chapters. The grants must be matched
with cash or in-kind contributions from
nonstate sources. Of this amount, $25,000
is for Asian Outdoor Heritage for youth
fishing recruitment efforts and outreach in
the metropolitan area. The commissioner
shall establish a grant application process
that includes a standard for ownership
of equipment purchased under the grant
program and contract requirements that
cover the disposition of purchased equipment
if the grantee no longer exists. Any
equipment purchased with state grant money
must be specified on the grant application
and approved by the commissioner. The
commissioner may spend up to three percent
of the appropriation to administer the grant.
This is a onetime appropriation and is
available until June 30, 2016.

Sec. 13. REPEALER.

Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended by Laws
2010, First Special Session chapter 1, article 6, section 6, Laws 2013, chapter 114, article
3, section 9,
is repealed.

ARTICLE 4

ENVIRONMENT AND NATURAL RESOURCES STATUTORY CHANGES

Section 1.

Minnesota Statutes 2014, section 16C.073, subdivision 2, is amended to read:


Subd. 2.

Purchases; printing.

(a) Whenever practicable, a public entity shall:

(1) purchase uncoated copy paper, office paper, and printing paper;

(2) purchase recycled content copy paper with at least ten 30 percent postconsumer
material by weight and purchase printing and office paper with at least ten percent
postconsumer material by weight
;

(3) purchase copy, office, and printing paper which has not been dyed with colors,
excluding pastel colors;

(4) purchase recycled content copy, office, and printing paper that is manufactured
using little or no chlorine bleach or chlorine derivatives;

(5) use no more than two colored inks, standard or processed, except in formats
where they are necessary to convey meaning;

(6) (5) use reusable binding materials or staples and bind documents by methods
that do not use glue;

(7) (6) use soy-based inks;

(8) (7) produce reports, publications, and periodicals that are readily recyclable
within the state resource recovery program; and

(9) (8) purchase paper which has been made on a paper machine located in Minnesota.

(b) Paragraph (a), clause (1), does not apply to coated paper that is made with at
least 50 percent postconsumer material.

(c) A public entity shall print documents on both sides of the paper where commonly
accepted publishing practices allow.

(d) Notwithstanding paragraph (a), clause (2), and section 16C.0725, copier paper
purchased by a state agency must contain at least ten percent postconsumer material by
fiber content.

Sec. 2.

Minnesota Statutes 2014, section 84.415, subdivision 7, is amended to read:


Subd. 7.

Existing road right-of-way; Application fee exemption.

(a) A utility
license for crossing public lands or public waters is exempt from all application fees
specified in this section and in rules adopted under this section when the utility crossing is
on an existing right-of-way of a public road
.

(b) This subdivision does not apply to electric power lines, cables, or conduits 100
kilovolts or greater or to main pipelines for gas, liquids, or solids in suspension.

EFFECTIVE DATE.

This section is effective retroactively from July 1, 2014, and
does not authorize the retroactive collection of fees.

Sec. 3.

[84.69] NATURAL RESOURCES CONSERVATION EASEMENT
STEWARDSHIP ACCOUNT.

Subdivision 1.

Account established; sources.

The natural resources conservation
easement stewardship account is created in the special revenue fund. The account consists
of money credited to the account and interest and other earnings on money in the account.
The State Board of Investment must manage the account to maximize long-term gain. The
following revenue must be deposited in the natural resources conservation easement
stewardship account:

(1) contributions to the account or specified for any purpose of the account;

(2) contributions under subdivision 3; section 84.66, subdivision 11; or other
applicable law;

(3) money appropriated for any of the purposes described in subdivision 2;

(4) money appropriated for monitoring and enforcement of easements and earnings
on the money appropriated that revert to the state under section 97A.056, subdivision
17, or other applicable law; and

(5) gifts under section 84.085 for conservation easement stewardship.

Subd. 2.

Appropriation; purposes of account.

Five percent of the balance on
July 1 of each year in the natural resources conservation easement stewardship account
is annually appropriated to the commissioner of natural resources and may be spent
only to cover the costs of managing conservation easements held by the Department
of Natural Resources, including costs associated with monitoring, landowner contacts,
records storage and management, processing landowner notices, requests for approval
or amendments, enforcement, and legal services associated with conservation easement
management activities.

Subd. 3.

Financial contributions.

The commissioner shall seek a financial
contribution to the natural resources conservation easement stewardship account for each
conservation easement acquired by or assigned to the Department of Natural Resources.
Unless otherwise provided by law, the commissioner shall determine the amount of the
contribution, which must be an amount calculated to earn sufficient money to meet
the costs of managing the conservation easement at a level that neither significantly
overrecovers nor underrecovers the costs. In determining the amount of the financial
contribution, the commissioner shall consider:

(1) the estimated annual staff hours needed to manage the conservation easement,
taking into consideration factors such as easement type, size, location, and complexity;

(2) the average hourly wages for the class or classes of employees expected to
manage the conservation easement;

(3) the estimated annual travel expenses to manage the conservation easement;

(4) the estimated annual miscellaneous costs to manage the conservation easement,
including supplies and equipment, information technology support, and aerial flyovers;

(5) the estimated annualized cost of legal services, including the cost to enforce the
easement in the event of a violation; and

(6) the expected rate of return on investments in the account.

EFFECTIVE DATE.

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

Sec. 4.

Minnesota Statutes 2014, section 84.788, subdivision 5, is amended to read:


Subd. 5.

Report of ownership transfers; fee.

A person who sells or transfers (a)
Application for transfer of
ownership of an off-highway motorcycle registered under
this section shall report the sale or transfer must be made to the commissioner within
15 days of the date of transfer.

(b) An application for transfer must be executed by the registered owner and the
buyer on a form prescribed by the commissioner with the owner's registration certificate,
purchaser using a bill of sale, and a $4 fee that includes the vehicle serial number.

(c) The purchaser is subject to the penalties imposed by section 84.774 if the
purchaser fails to apply for transfer of ownership as provided under this subdivision.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 5.

Minnesota Statutes 2014, section 84.788, is amended by adding a subdivision
to read:


Subd. 5a.

Report of registration transfers.

(a) Application for transfer of
registration under this section must be made to the commissioner within 15 days of the
date of transfer.

(b) An application for transfer must be executed by the registered owner and the
purchaser using a bill of sale that includes the vehicle serial number.

(c) The purchaser is subject to the penalties imposed by section 84.774 if the
purchaser fails to apply for transfer of registration as provided under this subdivision.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 6.

[84.8031] GRANT-IN-AID APPLICATIONS; REVIEW PERIOD.

The commissioner must review an off-road vehicle grant-in-aid application and, if
approved, commence public review of the application within 60 days after the completed
application has been locally approved and submitted to an area parks and trails office. If
the commissioner fails to approve or deny the application within 60 days after submission,
the application is deemed approved and the commissioner must provide for a 30-day
public review period.

Sec. 7.

Minnesota Statutes 2014, section 84.82, subdivision 2a, is amended to read:


Subd. 2a.

Nontrail use registration.

A snowmobile may be registered for nontrail
use. A snowmobile registered under this subdivision may not be operated on a state or
grant-in-aid snowmobile trail. The fee for a nontrail use registration of a snowmobile with
an engine displacement that is greater than 125 cubic centimeters
is $45 for three years. A
nontrail use registration is not transferable. In addition to other penalties prescribed by
law, the penalty for violation of this subdivision is immediate revocation of the nontrail
use registration. The commissioner shall ensure that the registration sticker provided for
limited nontrail use is of a different color and is distinguishable from other snowmobile
registration and state trail stickers provided.

Sec. 8.

Minnesota Statutes 2014, section 84.82, subdivision 6, is amended to read:


Subd. 6.

Exemptions.

Registration is not required under this section for:

(1) a snowmobile owned and used by the United States, an Indian tribal government,
another state, or a political subdivision thereof;

(2) a snowmobile registered in a country other than the United States temporarily
used within this state;

(3) a snowmobile that is covered by a valid license of another state and has not been
within this state for more than 30 consecutive days or that is registered by an Indian tribal
government to a tribal member and has not been outside the tribal reservation boundary
for more than 30 consecutive days;

(4) a snowmobile used exclusively in organized track racing events;

(5) a snowmobile in transit by a manufacturer, distributor, or dealer;

(6) a snowmobile at least 15 years old in transit by an individual for use only on
land owned or leased by the individual; or

(7) a snowmobile while being used to groom a state or grant-in-aid trail; or

(8) a snowmobile with an engine displacement that is 125 cubic centimeters or less
and the snowmobile is not operated on a state or grant-in-aid trail
.

Sec. 9.

Minnesota Statutes 2014, section 84.84, is amended to read:


84.84 TRANSFER OR TERMINATION OF SNOWMOBILE OWNERSHIP.

(a) Within 15 days after the transfer of ownership, or any part thereof, other than a
security interest, or the destruction or abandonment of any snowmobile, written notice
thereof of the transfer or destruction or abandonment shall be given to the commissioner
in such form as the commissioner shall prescribe.

(b) An application for transfer must be executed by the registered owner and the
purchaser using a bill of sale that includes the vehicle serial number.

(c) The purchaser is subject to the penalties imposed by section 84.88 if the purchaser
fails to apply for transfer of ownership as provided under this subdivision.
Every owner
or part owner of a snowmobile shall, upon failure to give such notice of destruction or
abandonment
, be subject to the penalties imposed by Laws 1967, chapter 876 section 84.88.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 10.

Minnesota Statutes 2014, section 84.92, subdivision 8, is amended to read:


Subd. 8.

All-terrain vehicle or vehicle.

"All-terrain vehicle" or "vehicle" means
a motorized vehicle of with: (1) not less than three, but not more than six low pressure
or non-pneumatic tires, that is limited in engine displacement of less than 1,000 cubic
centimeters and
; (2) a total dry weight of 2,000 pounds or less; and (3) a total width
from outside of tire rim to outside of tire rim that is 65 inches or less. All-terrain vehicle
includes a class 1 all-terrain vehicle and class 2 all-terrain vehicle. All-terrain vehicle does
not include a golf cart, mini-truck, dune buggy, or go-cart or a vehicle designed and used
specifically for lawn maintenance, agriculture, logging, or mining purposes.

Sec. 11.

Minnesota Statutes 2014, section 84.92, subdivision 9, is amended to read:


Subd. 9.

Class 1 all-terrain vehicle.

"Class 1 all-terrain vehicle" means an
all-terrain vehicle that has a total dry weight of less than 1,200 pounds width from outside
of tire rim to outside of tire rim that is 50 inches or less
.

Sec. 12.

Minnesota Statutes 2014, section 84.92, subdivision 10, is amended to read:


Subd. 10.

Class 2 all-terrain vehicle.

"Class 2 all-terrain vehicle" means an
all-terrain vehicle that has a total dry weight of 1,200 to 1,800 pounds width from outside
of tire rim to outside of tire rim that is greater than 50 inches but not more than 65 inches
.

Sec. 13.

Minnesota Statutes 2014, section 84.922, subdivision 4, is amended to read:


Subd. 4.

Report of transfers.

A person who sells or transfers ownership of a
vehicle registered under this section shall report the sale or
(a) Application for transfer of
ownership must be made
to the commissioner within 15 days of the date of transfer.

(b) An application for transfer must be executed by the registered owner and
the purchaser on a form prescribed by the commissioner with the owner's registration
certificate,
using a bill of sale and a $4 fee that includes the vehicle serial number.

(c) The purchaser is subject to the penalties imposed by section 84.774 if the
purchaser fails to apply for transfer of ownership as provided under this subdivision.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 14.

Minnesota Statutes 2014, section 84.925, subdivision 5, is amended to read:


Subd. 5.

Training requirements.

(a) An individual who was born after July 1,
1987, and who is 16 years of age or older, must successfully complete the independent
study course component of all-terrain vehicle safety training before operating an all-terrain
vehicle on public lands or waters, public road rights-of-way, or state or grant-in-aid trails.

(b) An individual who is convicted of violating a law related to the operation of an
all-terrain vehicle must successfully complete the independent study course component of
all-terrain vehicle safety training before continuing operation of an all-terrain vehicle.

(c) An individual who is convicted for a second or subsequent excess speed, trespass,
or wetland violation in an all-terrain vehicle season, or any conviction for careless or
reckless operation of an all-terrain vehicle, must successfully complete the independent
study and the testing and operating course components of all-terrain vehicle safety training
before continuing operation of an all-terrain vehicle.

(d) An individual who receives three or more citations and convictions for violating a
law related to the operation of an all-terrain vehicle in a two-year period must successfully
complete the independent study and the testing and operating course components of
all-terrain vehicle safety training before continuing operation of an all-terrain vehicle.

(e) An individual must present evidence of compliance with this subdivision before
an all-terrain vehicle registration is issued or renewed. A person may use the following as
evidence of meeting all-terrain vehicle safety certificate requirements:

(1) a valid all-terrain vehicle safety certificate issued by the commissioner;

(2) a driver's license that has a valid all-terrain vehicle safety certificate indicator
issued under section 171.07, subdivision 18; or

(3) an identification card that has a valid all-terrain vehicle safety certificate indicator
issued under section 171.07, subdivision 18.

EFFECTIVE DATE.

This section is effective January 1, 2016, or the date the new
driver and vehicle services information technology system is implemented, whichever
comes later.

Sec. 15.

Minnesota Statutes 2014, section 84.9256, subdivision 1, is amended to read:


Subdivision 1.

Prohibitions on youthful operators.

(a) Except for operation on
public road rights-of-way that is permitted under section 84.928 and as provided under
paragraph (j), a driver's license issued by the state or another state is required to operate an
all-terrain vehicle along or on a public road right-of-way.

(b) A person under 12 years of age shall not:

(1) make a direct crossing of a public road right-of-way;

(2) operate an all-terrain vehicle on a public road right-of-way in the state; or

(3) operate an all-terrain vehicle on public lands or waters, except as provided in
paragraph (f).

(c) Except for public road rights-of-way of interstate highways, a person 12 years
of age but less than 16 years may make a direct crossing of a public road right-of-way
of a trunk, county state-aid, or county highway or operate on public lands and waters or
state or grant-in-aid trails, only if that person possesses a valid all-terrain vehicle safety
certificate issued by the commissioner and is accompanied by a person 18 years of age or
older who holds a valid driver's license.

(d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years
old, but less than 16 years old, must:

(1) successfully complete the safety education and training program under section
84.925, subdivision 1, including a riding component; and

(2) be able to properly reach and control the handle bars and reach the foot pegs
while sitting upright on the seat of the all-terrain vehicle.

(e) A person at least 11 years of age may take the safety education and training
program and may receive an all-terrain vehicle safety certificate under paragraph (d), but
the certificate is not valid until the person reaches age 12.

(f) A person at least ten years of age but under 12 years of age may operate an
all-terrain vehicle with an engine capacity up to 90cc on public lands or waters if
accompanied by a parent or legal guardian.

(g) A person under 15 years of age shall not operate a class 2 all-terrain vehicle.

(h) A person under the age of 16 may not operate an all-terrain vehicle on public
lands or waters or on state or grant-in-aid trails if the person cannot properly reach and
control the handle bars and reach the foot pegs while sitting upright on the seat of the
all-terrain vehicle.

(i) Notwithstanding paragraph (c), a nonresident at least 12 years old, but less than
16 years old, may make a direct crossing of a public road right-of-way of a trunk, county
state-aid, or county highway or operate an all-terrain vehicle on public lands and waters
or state or grant-in-aid trails if:

(1) the nonresident youth has in possession evidence of completing an all-terrain
safety course offered by the ATV Safety Institute or another state as provided in section
84.925, subdivision 3; and

(2) the nonresident youth is accompanied by a person 18 years of age or older who
holds a valid driver's license.

(j) A person 12 years of age but less than 16 years of age may operate an all-terrain
vehicle on the roadway, bank, slope, or ditch of a public road right-of-way as permitted
under section 84.928 if the person:

(1) possesses a valid all-terrain vehicle safety certificate issued by the commissioner;
and

(2) is accompanied by a parent or legal guardian on a separate all-terrain vehicle.

Sec. 16.

Minnesota Statutes 2014, section 84.928, subdivision 1, is amended to read:


Subdivision 1.

Operation on roads and rights-of-way.

(a) Unless otherwise
allowed in sections 84.92 to 84.928 or by local ordinance under paragraph (k), a person shall
not operate an all-terrain vehicle in this state along or on the roadway, shoulder, or inside
bank or slope of a public road right-of-way of a trunk, county state-aid, or county highway.

(b) A person may operate a class 1 all-terrain vehicle in the ditch or the outside
bank or slope of a trunk, county state-aid, or county highway unless prohibited under
paragraph (d) or (f).

(c) A person may operate a class 1 all-terrain vehicle designed by the manufacturer
for off-road use to be driven by a steering wheel and equipped with operator and passenger
seat belts and a roll-over protective structure or
a class 2 all-terrain vehicle:

(1) within the public road right-of-way of a county state-aid or county highway on
the right shoulder or the extreme right-hand side of the road and left turns may be made
from any part of the road if it is safe to do so under the prevailing conditions, unless
prohibited under paragraph (d) or (f);

(2) on the bank, slope, or ditch of a public road right-of-way of a trunk, county
state-aid, or county highway but only to access businesses or make trail connections, and
left turns may be made from any part of the road if it is safe to do so under the prevailing
conditions, unless prohibited under paragraph (d) or (f); and

(3) on the bank or ditch of a public road right-of-way on a designated class 2
all-terrain vehicle trail.

(d) A road authority as defined under section 160.02, subdivision 25, may after a
public hearing restrict the use of all-terrain vehicles in the public road right-of-way under
its jurisdiction.

(e) The restrictions in paragraphs (a), (d), (h), (i), and (j) do not apply to the
operation of an all-terrain vehicle on the shoulder, inside bank or slope, ditch, or outside
bank or slope of a trunk, interstate, county state-aid, or county highway:

(1) that is part of a funded grant-in-aid trail; or

(2) when the all-terrain vehicle is owned by or operated under contract with:

(i) a road authority as defined under section 160.02, subdivision 25; or

(ii) a publicly or privately owned utility or pipeline company and used for work
on utilities or pipelines.

(f) The commissioner may limit the use of a right-of-way for a period of time if the
commissioner determines that use of the right-of-way causes:

(1) degradation of vegetation on adjacent public property;

(2) siltation of waters of the state;

(3) impairment or enhancement to the act of taking game; or

(4) a threat to safety of the right-of-way users or to individuals on adjacent public
property.

The commissioner must notify the road authority as soon as it is known that a closure
will be ordered. The notice must state the reasons and duration of the closure.

(g) A person may operate an all-terrain vehicle registered for private use and used
for agricultural purposes on a public road right-of-way of a trunk, county state-aid, or
county highway in this state if the all-terrain vehicle is operated on the extreme right-hand
side of the road, and left turns may be made from any part of the road if it is safe to do so
under the prevailing conditions.

(h) A person shall not operate an all-terrain vehicle within the public road
right-of-way of a trunk, county state-aid, or county highway from April 1 to August 1 in
the agricultural zone unless the vehicle is being used exclusively as transportation to and
from work on agricultural lands. This paragraph does not apply to an agent or employee
of a road authority, as defined in section 160.02, subdivision 25, or the Department of
Natural Resources when performing or exercising official duties or powers.

(i) A person shall not operate an all-terrain vehicle within the public road right-of-way
of a trunk, county state-aid, or county highway between the hours of one-half hour after
sunset to one-half hour before sunrise, except on the right-hand side of the right-of-way
and in the same direction as the highway traffic on the nearest lane of the adjacent roadway.

(j) A person shall not operate an all-terrain vehicle at any time within the
right-of-way of an interstate highway or freeway within this state.

(k) A county, city, or town, acting through its governing body, may by ordinance
allow a person to operate an all-terrain vehicle on a public road or street under its
jurisdiction to access businesses and residences and to make trail connections.

EFFECTIVE DATE.

The amendments to paragraph (e) of this section are effective
the day following final enactment.

Sec. 17.

Minnesota Statutes 2014, section 84D.01, is amended by adding a subdivision
to read:


Subd. 1a.

Aquatic invasive species affirmation.

"Aquatic invasive species
affirmation" means an affirmation of the summary of the aquatic invasive species laws of
this chapter that is part of watercraft licenses and nonresident fishing licenses, as provided
in section 84D.106.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 18.

Minnesota Statutes 2014, section 84D.01, subdivision 13, is amended to read:


Subd. 13.

Prohibited invasive species.

"Prohibited invasive species" means a
nonnative species that has been listed designated as a prohibited invasive species in a rule
adopted by the commissioner under section 84D.12.

Sec. 19.

Minnesota Statutes 2014, section 84D.01, subdivision 15, is amended to read:


Subd. 15.

Regulated invasive species.

"Regulated invasive species" means a
nonnative species that has been listed designated as a regulated invasive species in a rule
adopted by the commissioner under section 84D.12.

Sec. 20.

Minnesota Statutes 2014, section 84D.01, subdivision 17, is amended to read:


Subd. 17.

Unlisted nonnative species.

"Unlisted nonnative species" means a
nonnative species that has not been listed designated as a prohibited invasive species, a
regulated invasive species, or an unregulated nonnative species in a rule adopted by the
commissioner under section 84D.12.

Sec. 21.

Minnesota Statutes 2014, section 84D.01, subdivision 18, is amended to read:


Subd. 18.

Unregulated nonnative species.

"Unregulated nonnative species" means
a nonnative species that has been listed designated as an unregulated nonnative species in
a rule adopted by the commissioner under section 84D.12.

Sec. 22.

Minnesota Statutes 2014, section 84D.06, is amended to read:


84D.06 UNLISTED NONNATIVE SPECIES.

Subdivision 1.

Process.

A person may not introduce an unlisted nonnative aquatic
plant or wild animal species unless:

(1) the person has notified the commissioner in a manner and form prescribed by
the commissioner;

(2) the commissioner has made the classification determination required in
subdivision 2 and listed designated the species as appropriate; and

(3) the introduction is allowed under the applicable provisions of this chapter.

Subd. 2.

Classification.

(a) If the commissioner determines that a species for which
a notification is received under subdivision 1 should be classified as a prohibited invasive
species, the commissioner shall:

(1) adopt a rule under section 84D.12, subdivision 3, listing designating the species
as a prohibited invasive species; and

(2) notify the person from which the notification was received that the species is
subject to section 84D.04.

(b) If the commissioner determines that a species for which a notification is
received under subdivision 1 should be classified as an unregulated nonnative species,
the commissioner shall:

(1) adopt a rule under section 84D.12, subdivision 3, listing designating the species
as an unregulated nonnative species; and

(2) notify the person from which the notification was received that the species is not
subject to regulation under this chapter.

(c) If the commissioner determines that a species for which a notification is received
under subdivision 1 should be classified as a regulated invasive species, the commissioner
shall notify the applicant that the species is subject to the requirements in section 84D.07.

Sec. 23.

Minnesota Statutes 2014, section 84D.10, subdivision 3, is amended to read:


Subd. 3.

Removal and confinement.

(a) A conservation officer or other licensed
peace officer may order:

(1) the removal of aquatic macrophytes or prohibited invasive species from
water-related equipment, including decontamination using hot water or high pressure
equipment when available on site,
before it the water-related equipment is transported or
before it is
placed into waters of the state;

(2) confinement of the water-related equipment at a mooring, dock, or other location
until the water-related equipment is removed from the water;

(3) removal of water-related equipment from waters of the state to remove prohibited
invasive species if the water has not been listed by the commissioner as being infested
with that species; and

(4) a prohibition on placing water-related equipment into waters of the state when
the water-related equipment has aquatic macrophytes or prohibited invasive species
attached in violation of subdivision 1 or when water has not been drained or the drain plug
has not been removed in violation of subdivision 4.; and

(5) decontamination of water-related equipment when available on site.

(b) An order for removal of prohibited invasive species under paragraph (a), clause
(1), or decontamination of water-related equipment under paragraph (a), clause (5),
may include tagging the water-related equipment and issuing a notice that specifies
a time frame for completing the removal or decontamination and reinspection of the
water-related equipment.

(b) (c) An inspector who is not a licensed peace officer may issue orders under
paragraph (a), clauses (1), (3), and (4), and (5).

Sec. 24.

[84D.106] AQUATIC INVASIVE SPECIES AFFIRMATION.

Aquatic invasive species affirmation is required for all:

(1) watercraft licenses issued under section 86B.401; and

(2) all nonresident fishing licenses, as provided in section 97C.301, subdivision 2a.

EFFECTIVE DATE.

Clause (1) of this section is effective January 1, 2016, and
clause (2) of this section is effective March 1, 2016.

Sec. 25.

Minnesota Statutes 2014, section 84D.11, subdivision 1, is amended to read:


Subdivision 1.

Prohibited invasive species.

The commissioner may issue a permit
for the propagation, possession, importation, purchase, or transport of a prohibited invasive
species for the purposes of disposal, decontamination, control, research, or education.

Sec. 26.

Minnesota Statutes 2014, section 84D.12, subdivision 1, is amended to read:


Subdivision 1.

Required rules.

The commissioner shall adopt rules:

(1) listing designating prohibited invasive species, regulated invasive species, and
unregulated nonnative species of aquatic plants and wild animals;

(2) governing the application for and issuance of permits under this chapter, which
rules may include a fee schedule; and

(3) governing notification under section 84D.08.

Sec. 27.

Minnesota Statutes 2014, section 84D.12, subdivision 3, is amended to read:


Subd. 3.

Expedited rules.

The commissioner may adopt rules under section 84.027,
subdivision 13
, that list designate:

(1) prohibited invasive species of aquatic plants and wild animals;

(2) regulated invasive species of aquatic plants and wild animals; and

(3) unregulated nonnative species of aquatic plants and wild animals.

Sec. 28.

Minnesota Statutes 2014, section 84D.13, subdivision 5, is amended to read:


Subd. 5.

Civil penalties.

(a) A civil citation issued under this section must impose
the following penalty amounts:

(1) for transporting aquatic macrophytes in violation of section 84D.09, $100;

(2) for placing or attempting to place into waters of the state water-related equipment
that has aquatic macrophytes attached, $200;

(3) for unlawfully possessing or transporting a prohibited invasive species other
than an aquatic macrophyte, $500;

(4) for placing or attempting to place into waters of the state water-related equipment
that has prohibited invasive species attached when the waters are not listed by the
commissioner as being infested with that invasive species, $500;

(5) for intentionally damaging, moving, removing, or sinking a buoy marking, as
prescribed by rule, Eurasian water milfoil, $100;

(6) for failing to have drain plugs or similar devices removed or opened while
transporting water-related equipment or for failing to remove plugs, open valves, and
drain water from water-related equipment, other than marine sanitary systems, before
leaving waters of the state, $100; and

(7) for transporting infested water off riparian property without a permit as required
by rule, $200; and

(8) for failing to have aquatic invasive species affirmation displayed or available for
inspection as provided in sections 86B.401 and 97C.301, subdivision 2a, $25
.

(b) A civil citation that is issued to a person who has one or more prior convictions
or final orders for violations of this chapter is subject to twice the penalty amounts listed
in paragraph (a).

Sec. 29.

Minnesota Statutes 2014, section 84D.15, subdivision 3, is amended to read:


Subd. 3.

Use of money in account.

Money credited to the invasive species account
in subdivision 2 shall be used for management of invasive species and implementation of
this chapter as it pertains to invasive species, including control, public awareness, law
enforcement, assessment and monitoring, management planning, habitat improvements,
and research.

Sec. 30.

Minnesota Statutes 2014, section 85.015, is amended by adding a subdivision
to read:


Subd. 1e.

Connection to state parks and recreation areas.

Trails designated under
this section may include connections to state parks or recreation areas that generally lie in
between or within the vicinity of the waymarks specifically named in the designation.

Sec. 31.

Minnesota Statutes 2014, section 85.015, is amended by adding a subdivision
to read:


Subd. 6a.

Mississippi Blufflands Trail; Goodhue and Wabasha Counties.

(a)
The Mississippi Blufflands Trail shall originate at the Cannon Valley Trail and thence
extend generally southeasterly along the Mississippi River through Frontenac State Park in
Goodhue County and continue through Goodhue and Wabasha Counties to the city of Lake
City, and there terminate. The trail shall include connections to the Rattlesnake Bluff Trail.

(b) The trail shall be developed primarily for riding and hiking.

(c) In establishing, developing, maintaining, and operating the trail, the
commissioner shall cooperate with local units of government and private individuals and
groups whenever feasible.

Sec. 32.

Minnesota Statutes 2014, section 85.015, subdivision 7, is amended to read:


Subd. 7.

Blufflands Trail system, Fillmore, Olmsted, Winona, and Houston
Counties.

(a) The Root River Trail shall originate at Chatfield in Fillmore County, and
thence extend easterly in the Root River Valley to the intersection of the river with
Minnesota Trunk Highway No. 26 in Houston County, and extend to the Mississippi River.

(b) Additional trails may be established that extend the Blufflands Trail system to
include La Crescent, Hokah, Caledonia, and Spring Grove in Houston County; Preston,
Harmony, Fountain, Wykoff, Spring Valley, Mabel, Prosper, Canton, and Ostrander,
and connections to the Iowa border including a connection to Niagara Cave
in Fillmore
County; Rochester, Dover, Eyota, Stewartville, Byron, and Chester Woods County Park in
Olmsted County; and Winona, Minnesota City, Rollingstone, Altura, Lewiston, Utica,
St. Charles, and Elba in Winona County. In addition to the criteria in section 86A.05,
subdivision 4
, these trails must utilize abandoned railroad rights-of-way where possible.

(c) The trails shall be developed primarily for nonmotorized riding and hiking.

Sec. 33.

Minnesota Statutes 2014, section 85.015, subdivision 28, is amended to read:


Subd. 28.

Camp Ripley/Veterans State Trail, Crow Wing, Cass, and Morrison
Counties.

The trail shall originate at Crow Wing State Park in Crow Wing County at
the southern end of the Paul Bunyan Trail and shall extend from Crow Wing State Park
westerly to the city of Pillager, then southerly along the west side of Camp Ripley, then
easterly along the south side of Camp Ripley across to the east side of the Mississippi
River, and then northerly through Fort Ripley to Crow Wing State Park. A second segment
of the trail shall be established that shall extend in a southerly direction and in close
proximity to the Mississippi River from the southeasterly portion of the first segment of
the trail to the city of Little Falls, and then terminate at the Soo Line Trail in Morrison
County. Separation of motorized and nonmotorized corridors is acceptable as needed.

Sec. 34.

[85.0506] LAKE VERMILION-SOUDAN UNDERGROUND MINE
STATE PARK; HOISTS.

The Lake Vermilion-Soudan Underground Mine State Park mine tour operation is
exempt from sections 326B.163 to 326B.191. The federal mine code for hoists that lift
people under Code of Federal Regulations, title 30, part 57, subpart R, applies to the
Lake Vermilion-Soudan Underground Mine State Park hoist. The commissioner shall
employ a hoist safety expert to conduct an annual inspection of the hoist system at the
Lake Vermilion-Soudan Underground Mine State Park.

Sec. 35.

Minnesota Statutes 2014, section 85.054, subdivision 12, is amended to read:


Subd. 12.

Lake Vermilion-Soudan Underground Mine State Park.

A state park
permit is not required and a fee may not be charged for motor vehicle entry or parking
at the visitor parking area of Soudan Underground Mine State Park and the Stuntz Bay
boat house area
.

Sec. 36.

Minnesota Statutes 2014, section 85.32, subdivision 1, is amended to read:


Subdivision 1.

Areas marked.

The commissioner of natural resources is authorized
in cooperation with local units of government and private individuals and groups when
feasible to mark state water trails on the Little Fork, Big Fork, Minnesota, St. Croix,
Snake, Mississippi, Red Lake, Cannon, Straight, Des Moines, Crow Wing, St. Louis, Pine,
Rum, Kettle, Cloquet, Root, Zumbro, Pomme de Terre within Swift County, Watonwan,
Cottonwood, Whitewater, Chippewa from Benson in Swift County to Montevideo in
Chippewa County, Long Prairie, Red River of the North, Sauk, Otter Tail, Redwood,
Blue Earth, Cedar, Shell Rock, and Crow Rivers which have historic and scenic values
and to mark appropriately points of interest, portages, camp sites, and all dams, rapids,
waterfalls, whirlpools, and other serious hazards which are dangerous to canoe, kayak,
and watercraft travelers.

Sec. 37.

Minnesota Statutes 2014, section 86B.401, subdivision 3, is amended to read:


Subd. 3.

Licensing.

(a) The license agent shall register the watercraft on receiving
an application and the license fee. A license and registration sticker with a registration
number shall be issued and must be affixed to the watercraft as prescribed by the
commissioner of natural resources.

(b) A license includes aquatic invasive species affirmation as provided in section
84D.106. The aquatic invasive species affirmation portion of the license must be on board
or available with the signed license certificate. The aquatic invasive species affirmation will
be provided with an application for a new, transfer, duplicate, or renewal watercraft license.

(c) The license is not valid unless signed by at least one owner.

(d) Failure to complete the aquatic invasive species affirmation in this subdivision is
subject to the penalty prescribed in section 84D.13, subdivision 5.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 38.

Minnesota Statutes 2014, section 87A.10, is amended to read:


87A.10 TRAP SHOOTING SPORTS FACILITY GRANTS.

The commissioner of natural resources shall administer a program to provide
cost-share grants to local recreational shooting clubs or local units of government for up to
50 percent of the costs of developing or rehabilitating trap shooting sports facilities for
public use. A facility rehabilitated or developed with a grant under this section must
be open to the general public at reasonable times and for a reasonable fee on a walk-in
basis. The commissioner shall give preference to projects that will provide the most
opportunities for youth.

Sec. 39.

Minnesota Statutes 2014, section 88.17, subdivision 3, is amended to read:


Subd. 3.

Special permits.

The following special permits are required at all times,
including when the ground is snow-covered:

(a) Fire training. A permit to start a fire for the instruction and training of
firefighters, including liquid fuels training, may be given by the commissioner or agent of
the commissioner. Except for owners or operators conducting fire training in specialized
industrial settings pursuant to applicable federal, state, or local standards, owners
or operators conducting open burning for the purpose of instruction and training of
firefighters with regard to structures must follow the techniques described in a document
entitled: Structural Burn Training Procedures for the Minnesota Technical College System
use only fuel materials as outlined in the current edition of National Fire Protection
Association 1403, Standard on Live Fire Training Evolutions, and obtain the applicable
live burn documents in accordance with the current edition of the Board of Firefighter
Training and Education's live burn plan established according to section 299N.02,
subdivision 3, clause (2)
.

(b) Permanent tree and brush open burning sites. A permit for the operation of
a permanent tree and brush burning site may be given by the commissioner or agent of
the commissioner. Applicants for a permanent open burning site permit shall submit a
complete application on a form provided by the commissioner. Existing permanent tree
and brush open burning sites must submit for a permit within 90 days of the passage of
this statute for a burning permit. New site applications must be submitted at least 90
days before the date of the proposed operation of the permanent open burning site. The
application must be submitted to the commissioner and must contain:

(1) the name, address, and telephone number of all owners of the site proposed for
use as the permanent open burning site;

(2) if the operator for the proposed permanent open burning site is different from the
owner, the name, address, and telephone number of the operator;

(3) a general description of the materials to be burned, including the source and
estimated quantity, dimensions of the site and burn pile areas, hours and dates of operation,
and provisions for smoke management; and

(4) a topographic or similarly detailed map of the site and surrounding area within
a one-mile circumference showing all structures that might be affected by the operation
of the site.

Only trees, tree trimmings, or brush that cannot be disposed of by an alternative
method such as chipping, composting, or other method shall be permitted to be burned
at a permanent open burning site. A permanent tree and brush open burning site must
be located and operated so as not to create a nuisance or endanger water quality. The
commissioner shall revoke the permit or order actions to mitigate threats to public health,
safety, and the environment in the event that permit conditions are violated.

Sec. 40.

Minnesota Statutes 2014, section 88.49, subdivision 3, is amended to read:


Subd. 3.

Recording Provisions of auxiliary forest contract to run with the land.

The commissioner shall submit such contract in recordable form to the owner of the land
covered thereby. If the owner shall indicate to the commissioner an unwillingness to
execute the same, or if the owner or any of the persons having an interest therein or lien
thereon fail to execute it within 60 days from the time of its submission to the owner, all
proceedings relating to the making of this land into an auxiliary forest shall be at an end.

When the contract shall have been executed it shall forthwith be recorded in the
office of the county recorder at the expense of the owner or, if the title to the land be
registered, with the registrar of titles. At the time the contract is recorded with the county
recorder for record the owner, at the owner's expense, shall record with the county recorder
a certificate from the county attorney to the effect that no change in record title thereof has
occurred, that no liens or other encumbrances have been placed thereon, and that no taxes
have accrued thereon since the making of the previous certificate. It shall be the duty of
the county attorney to furnish this certificate without further compensation.

All the provisions of the a recorded contract shall be for an auxiliary forest are deemed
covenants running with the land from the date of the filing of the contract for record.

Sec. 41.

Minnesota Statutes 2014, section 88.49, subdivision 4, is amended to read:


Subd. 4.

Effect.

Upon the filing of the contract for record, the land therein described
in the contract shall become, and, during the life of the contract, remain and be, an
auxiliary forest entitled to all the benefits and subject to all the restrictions of sections
88.47 88.49 to 88.53, all of which shall be deemed a. These sections are part of the
obligation of the contract and shall be are inviolate, subject only to the police power of the
state, to the power of eminent domain, and to the right of the parties thereto by mutual
agreement to make applicable to the contract any
laws of the state enacted subsequent to its
the execution and filing. This provision shall not be so construed as to prevent amendatory
or supplementary legislation which does
of the contract. Laws enacted subsequent to
the date of execution of the contract are applicable to the contract, so long as the laws
do
not impair these the contract rights of the parties thereto, or as to prevent amendatory
or supplementary legislation in respect of the culture, care, or management of the lands
included in any such contract
signatories of the contract or their successors or assigns.

Sec. 42.

Minnesota Statutes 2014, section 88.49, subdivision 5, is amended to read:


Subd. 5.

Cancellation.

Upon the failure of (a) If the owner fails to faithfully to
fulfill and perform such the contract or, any provision thereof of the contract, or any
requirement of sections 88.47 88.49 to 88.53, or any rule adopted by the commissioner
thereunder adopts under those sections, the commissioner may cancel the contract in
the manner herein provided
. The commissioner shall give to the owner, in the manner
prescribed in section 88.48, subdivision 4,
60 days' notice of a hearing thereon at which
the owner may appear and show cause, if any, why the contract should not be canceled.
The commissioner shall thereupon then determine whether the contract should be canceled
and make an order to that effect. Notice of the commissioner's determination and the
making of the order shall be given to
The commissioner shall give the owner in the manner
provided in section 88.48, subdivision 4
notice of the commissioner's determination and
order
. On determining If the commissioner determines that the contract should be canceled
and no appeal therefrom be taken the owner does not appeal the determination as provided
in subdivision 7
, the commissioner shall send notice thereof of the cancellation to the
auditor of the county and to the town clerk of the town affected and file with the recorder a
certified copy of the order, who. The recorder shall forthwith note the cancellation upon
the record thereof, and thereupon the land therein described in the contract shall cease to
be an auxiliary forest and, together with the timber thereon on the land, become liable
to for all taxes and assessments that otherwise would have been levied against it had it
never been an auxiliary forest
the land from the time of the making of the contract, any
notwithstanding provisions of the statutes of limitation to the contrary notwithstanding,
less
. The amount of taxes paid under the provisions of section 88.51, subdivision 1,
together with interest on such taxes and assessments at six percent per annum, but without
penalties, must be subtracted from the tax owed by the owner.

(b) The commissioner may in like manner and with like effect cancel the contract
upon written application of the owner.

(c) The commissioner shall cancel any the contract if the owner has made successful
application
successfully applied under sections 290C.01 to 290C.11, the Sustainable Forest
Incentive Act, sections 290C.01 to 290C.11, and has paid to the county treasurer the tax
difference between the amount which that would have been paid had the land under contract
been subject to the Minnesota Tree Growth Tax Law and the Sustainable Forest Incentive
Act from the date of the recording of the contract and the amount actually paid under
section 88.51, subdivisions subdivision 1, and Minnesota Statutes 2014, section 88.51,
subdivision
2. This tax difference must be calculated based on the years the lands would
have been taxed under the Tree Growth Tax Law and the Sustainable Forest Incentive Act.
The sustainable forest tax difference is net of the incentive payment of section 290C.07.
If the amount which that would have been paid, had if the land under contract had been
under the Minnesota Tree Growth Tax Law and the Sustainable Forest Incentive Act from
the date of the filing of the contract, was filed is less than the amount actually paid under
the contract, the cancellation shall be made without further payment by the owner.

When (d) If the execution of any the contract creating an auxiliary forest shall have
been
is procured through fraud or deception practiced upon on the county board or, the
commissioner, or any other person or body representing the state, it may be canceled
cancel it upon suit brought by the attorney general at the direction of the commissioner.
This cancellation shall have has the same effect as the cancellation of a contract by the
commissioner.

Sec. 43.

Minnesota Statutes 2014, section 88.49, subdivision 6, is amended to read:


Subd. 6.

Assessment after cancellation.

(a) For the purpose of levying such taxes,
the county auditor shall, immediately upon receipt of receiving notice of the cancellation
of any a contract creating an auxiliary forest, direct the local assessor to assess the lands
within the forest, excluding the value of merchantable timber and minerals and other
things of value taxed under the provisions of Minnesota Statutes 2014, section 88.51,
subdivision 2
, as of for each of the years during which the lands have been were included
within the auxiliary forest. The local assessor shall forthwith make the assessment and
certify the same to the county auditor. The county auditor shall thereupon levy a tax on the
assessable value of the land as, fixed by section 273.13, for each of the years during which
the land has been was within an auxiliary forest, at the rate at which other real estate
within the taxing district was taxed in those years. The tax so assessed and levied against
any land shall be
is a first and prior lien upon the land and upon all timber and forest
products growing, grown, or cut thereon on the land and removed therefrom from the land.
These taxes shall must be enforced in the same manner as other taxes on real estate are
enforced and, in addition thereto, the lien of the tax on forest products cut or removed
from this land shall must be enforced by the seizure and sale of the forest products.

(b) No person shall, after the mailing by the commissioner, as provided in subdivision
5, of notice of hearing on the cancellation of a the contract making any lands an auxiliary
forest, cut or remove from these lands any timber or forest products growing, grown, or
cut thereon until all taxes levied under this subdivision shall have been are paid, or, in the
event such
if the levy shall is not have been completed, until the owner shall have has given
a bond payable to the county, with sureties approved by the county auditor, in such the
amount as the county auditor shall deem deems ample for the payment of all taxes that may
be levied thereon under this subdivision, conditioned for the payment of such the taxes.

(c) Any person who shall violate any of the provisions of violates this subdivision
shall be is guilty of a felony.

Sec. 44.

Minnesota Statutes 2014, section 88.49, subdivision 7, is amended to read:


Subd. 7.

Appeal.

(a) The owner may appeal from any cancellation order of the
commissioner to the district court of the county wherein where the land is situate, located
by serving notice of appeal on the commissioner and filing the same with the court
administrator of the district court within 30 days after the date of mailing of notice
of such order.

(b) The appeal shall must be tried between the state of Minnesota and the owner by
the court as a suit for the rescission of a contract is tried, and the judgment of the court
shall be is substituted for the cancellation order of the commissioner, and shall be is final.

Sec. 45.

Minnesota Statutes 2014, section 88.49, subdivision 8, is amended to read:


Subd. 8.

Proceedings in lieu of cancellation.

If cause for the cancellation of any a
contract shall exist exists, the commissioner may, in lieu of canceling such the contract,
perform the terms and conditions, other than the payment of that the owner was required
to perform, except that the commissioner may not pay any
taxes, that the owner was
required, by the contract or by law or by the rules of the commissioner, to be performed by
the owner, and may for that purpose
to have paid by law. The commissioner may use any
available moneys appropriated for the maintenance of the commissioner's division and
any other lawful means to perform all other terms and conditions required to maintain the
auxiliary forest status
. The commissioner shall, on December 1 each year, certify to the
auditor of each county the amount of moneys thus expended on and the value of services
thus rendered in respect of any lands therein for land in the county since December 1 of
the preceding year. The county auditor shall forthwith assess and levy the amount shown
by this certificate against the lands described therein. This amount shall bear bears interest
at the rate of six percent per annum and shall be is a lien upon the lands described therein,
and
. The collection thereof of the tax must be enforced in the same manner as taxes
levied under section 88.52, subdivision 1;, and, if such the tax be is not sooner paid, it
shall must be added to, and the payment thereof enforced with, the yield tax imposed
under section 88.52, subdivision 2.

Sec. 46.

Minnesota Statutes 2014, section 88.49, subdivision 9, is amended to read:


Subd. 9.

Auxiliary forests; withdrawal of land from.

(a) Land needed for other
purposes may be withdrawn from an auxiliary forest as herein provided. The owner may
submit
a verified application therefor in a form prescribed by the commissioner of natural
resources may be made by the owner to the county board of the county in which the land is
situated, describing the land and stating the purpose of withdrawal. Like proceedings shall
be had upon the application as upon an application for the establishment of an auxiliary
forest, except that consideration need be given only to the questions to be determined as
provided in this subdivision.
The county board shall consider the application and hear any
matter offered in support of or in opposition to the application. The county board shall
make proper record of its action upon the application. If the application is rejected, the
county board shall prepare a written statement stating the reasons for the rejection within
30 days of the date of rejection. If the application is rejected, the county auditor shall,
within 30 days of the rejection, endorse the rejection on the application and return it,
together with a copy of the written statement prepared by the county board stating the
reasons for rejection to the applicant. The rejected application and written statement must
be sent to the owner by certified mail at the address given in the application.

(b) If the application is disapproved as to only a part of the lands described, the
county auditor shall notify the applicant in the same manner as if the application were
rejected. The applicant may amend the application within 60 days after the notice is
mailed. If it is not amended, the application is deemed rejected.

(c) If the county board shall determine determines that the land proposed to be
withdrawn is needed and is suitable for the purposes set forth in the application, and
that the remaining land in the auxiliary forest is suitable and sufficient for the purposes
thereof of the auxiliary forest as provided by law, the board may, in its discretion, grant
the application, subject to the approval of the commissioner. Upon such approval a
supplemental contract evidencing the withdrawal shall be executed, filed, and recorded
or registered as the case may require, in like manner as an original auxiliary forest
contract. Thereupon
by both the county board and the commissioner, the county auditor
shall notify the applicant and the commissioner. Upon notice from the county auditor,
the commissioner shall cause to be prepared a supplemental contract executed by the
commissioner on behalf of the state and by the owner of the fee title or the holder of
a state deed and by all other persons having any liens on the land and witnessed and
acknowledged as provided by law for the execution of recordable deeds of conveyance.
Notices sent by certified mail to the owner in fee at the address given in the application
is deemed notice to all persons executing the supplemental contract. The supplemental
contract must be prepared by the director of the Division of Forestry on a recordable
form approved by an attorney appointed by the commissioner. Every supplemental
contract must be approved by the Executive Council. The commissioner shall submit the
supplemental contract to the owner of the land. If the owner indicates to the commissioner
an unwillingness to execute the supplemental contract, or if the owner or any of the
persons with an interest in the land or a lien upon the land fail to execute the contract
within 60 days from the time of submission of the contract to the owner for execution, all
proceedings relating back to the withdrawal of the land from an auxiliary forest shall be at
an end. When the supplemental contract is executed, it must be recorded in the office of
the county recorder at the expense of the owner or, if the title to the land is registered, the
supplemental contract must be recorded with the registrar of titles. At the time the contract
is recorded with the county recorder, the owner, at the owner's expense, shall record with
the county recorder a certificate from the county attorney to the effect that no change in
record title to the land has occurred, that no liens or other encumbrances have been placed
on the land, and that no taxes have accrued on the land since the making of the previous
certificate. The county attorney must furnish this certificate without further compensation.
Upon execution and recording of the supplemental contract,
the land described in the
supplemental contract shall cease that is to be withdrawn from the auxiliary forest ceases
to be part of the auxiliary forest, and, together with the timber thereon, shall be the owner
is
liable to taxes and assessments of the withdrawn portion together with the timber on the
withdrawn portion
in like manner as upon cancellation of an auxiliary forest contract.

Sec. 47.

Minnesota Statutes 2014, section 88.49, subdivision 11, is amended to read:


Subd. 11.

Auxiliary forests; transfer of title; procedure on division.

The title to
the land in an auxiliary forest or any part thereof of an auxiliary forest is subject to transfer
in the same manner as the title to other real estate, subject to the auxiliary forest contract
therefor and to applicable provisions of law. In case If the ownership of such a an auxiliary
forest is divided into two or more parts by any transfer or transfers of title and the owners
of all such the parts desire to have the same parts made separate auxiliary forests, they the
owners
may join in a verified application therefor to the county board of the county in
which the forest is situated in a form prescribed by the commissioner of natural resources.
If the county board determines that each of the parts into which the forest has been divided
is suitable and sufficient for a separate auxiliary forest as provided by law, it may, in
its discretion,
grant the application, subject to the approval of the commissioner. Upon
such approval, the commissioner shall prepare a new auxiliary forest contract for each
part transferred, with like provisions and for the remainder of the same term as the prior
contract in force for the entire forest at the time of the transfer, and shall also prepare a
modification of such the prior contract, eliminating therefrom the part or parts of the land
transferred but otherwise leaving the remaining land subject to all the provisions of such
the contract. The new contract or contracts and modification of the prior contract shall
must be executed and otherwise dealt with in like manner as provided for an original a
supplemental
auxiliary forest contract in subdivision 9, but no such instrument shall must
take effect until all of them, covering together all parts of the forest existing before the
transfer,
have been executed, filed, and recorded or registered, as the case may require.
Upon the taking effect of When all such the instruments take effect, the owner of the
forest prior to the transfer shall be is divested of all rights and relieved from all liabilities
under the contract then in force with respect to the parts transferred except such those as
may have existed or accrued at the time of the taking effect of such instruments, and
thereafter the several tracts into which the forest has been divided and the respective
owners thereof shall be are subject to the new contract or contracts or the modified prior
contract relating thereto, as the case may be, as provided for an original auxiliary forest
contract. The provisions of this subdivision shall not supersede or affect the application
of any other provision of law to any auxiliary forest which is divided by transfer of title
unless the procedure herein authorized is fully consummated.

Sec. 48.

Minnesota Statutes 2014, section 88.491, subdivision 2, is amended to read:


Subd. 2.

Effect of expired contract.

When auxiliary forest contracts expire,
or prior to expiration by mutual agreement between the land owner landowner and the
appropriate county office, the lands previously covered by an auxiliary forest contract
automatically qualify for inclusion under the provisions of the Sustainable Forest Incentive
Act; provided that when such lands are included in the Sustainable Forest Incentive Act
prior to expiration of the auxiliary forest contract, they will be transferred and a tax paid as
provided in section 88.49, subdivision 5, upon application and inclusion in the sustainable
forest incentive program. The land owner landowner shall pay taxes in an amount equal to
the difference between:

(1) the sum of:

(i) the amount which would have been paid from the date of the recording of the
contract had the land under contract been subject to the Minnesota Tree Growth Tax
Law; plus

(ii) beginning with taxes payable in 2003, the taxes that would have been paid if the
land had been enrolled in the sustainable forest incentive program; and

(2) the amount actually paid under section 88.51, subdivisions subdivision 1, and
Minnesota Statutes 2014, section 88.51, subdivision 2.

Sec. 49.

Minnesota Statutes 2014, section 88.50, is amended to read:


88.50 TAXATION.

Every auxiliary forest in this state shall must be taxed in the manner and to the extent
hereinafter provided
according to sections 88.49 to 88.53 and not otherwise. Except as
expressly permitted by sections 88.47 88.49 to 88.53, no auxiliary forest shall be taxed
for, or in any manner, directly or indirectly made to contribute to, or become liable for
the payment of, any tax or assessment, general or special, or any bond, certificate of
indebtedness, or other public obligation of any name or kind, made, issued, or created
subsequent to the filing of the contract creating the auxiliary forest, provided that
temporary buildings, structures, or other fixtures of whatsoever kind located upon land
within an auxiliary forest shall be valued and assessed as personal property and classified
as class 3 under the general system of ad valorem taxation. In any proceeding for the
making of a special improvement under the laws of this state by which any auxiliary forest
will be benefited, the owner thereof may subject the lands therein to assessment therefor in
the manner provided by law, by filing the owner's written consent in writing to the making
of the
assessment in the tribunal in which the proceeding is pending, whereupon. The lands
shall for the purposes of the improvement and assessment not be treated as lands not in an
auxiliary forest; but the lien of any assessment so levied on lands in any auxiliary forest shall
be
is subject to the provisions of the contract creating the auxiliary forest and subordinate
to the lien of any tax imposed under the provisions of sections 88.47 88.49 to 88.53.

Sec. 50.

Minnesota Statutes 2014, section 88.51, subdivision 1, is amended to read:


Subdivision 1.

Annual tax, ten cents per acre.

(a) From and after the filing of the
contract creating any tract of land an auxiliary forest under sections 88.47 88.49 to 88.53
and hereafter upon any tract heretofore created as an auxiliary forest, the surface of the
land therein, exclusive of mineral or anything of value thereunder, shall must be taxed
annually at the rate of 10 cents per acre. This tax shall must be levied and collected, and
the payment thereof of the tax, with penalties and interest, enforced in the same manner as
other taxes on real estate, and shall must be credited to the funds of the taxing districts
affected in the proportion of their interest in the taxes on this land if it had not been so
made an auxiliary forest; provided, that such tax shall be is due in full on or before May
31, after the levy thereof. Failure to pay when due any tax so levied shall be is cause
for cancellation of the contract.

(b) The levy upon the land of the taxes provided for by section 88.49, subdivision 5,
upon the cancellation of a contract, shall discharge and annul discharges and annuls all
unpaid taxes levied or assessed thereon on the land.

Sec. 51.

Minnesota Statutes 2014, section 88.51, subdivision 3, is amended to read:


Subd. 3.

Determination of estimated market value.

In determining the net tax
capacity of property within any taxing district, the value of the surface of lands within any
auxiliary forest therein in the taxing district, as determined by the county board under the
provisions of section 88.48, subdivision 3
, shall, for all purposes except the levying of
taxes on lands within any such forest, be deemed the estimated market value thereof of
those surface lands
.

Sec. 52.

Minnesota Statutes 2014, section 88.52, subdivision 2, is amended to read:


Subd. 2.

Examination, report.

When any timber growing or standing in any
auxiliary forest shall have become is suitable for merchantable forest products, the
commissioner shall, at the written request of the owner, a copy of which shall at the time be
filed in the office of the county auditor, make an examination of the timber and designate
for the owner the kind and number of trees most suitable to be cut if in the judgment of
the commissioner there be any, and. The cutting and removal of these designated trees so
designated shall
must be in accordance with the instructions of the commissioner. The
commissioner shall inspect the cutting or removal and determine whether it or the manner
of its performance constitute a violation of the terms of the contract creating the auxiliary
forest or of the laws applicable thereto laws, or of the instructions of the commissioner
relative to the cutting and removal. Any such violation shall be is ground for cancellation
of the contract by the commissioner; otherwise the contract shall continue continues in
force for the remainder of the period therein stated in the contract, regardless of the cutting
and removal. Within 90 days after the completion of any cutting or removal operation,
the commissioner shall make a report of findings thereon and transmit copies of such the
report to the county auditor and the surveyor general.

Sec. 53.

Minnesota Statutes 2014, section 88.52, subdivision 3, is amended to read:


Subd. 3.

Kinds, permit, scale report, assessment and payment of tax.

(a) Upon
the filing of the owner's written request of the owner as provided in subdivision 2, the
director of lands and forestry, with the county board or the county land commissioner,
shall determine within 30 days the kinds, quantities, and value on the stump of the timber
proposed to be cut.

Before the cutting is to begin, the director of lands and forestry shall file with the
county auditor a report showing the kinds, quantities, and value of the timber proposed to
be cut or removed and approved by the director of lands and forestry for cutting within
two years after the date of approval of the report by the director of lands and forestry. The
county auditor shall assess and levy the estimated yield tax thereon, make proper record
of this assessment and levy in the auditor's office, and notify the owner of the auxiliary
forest of the tax amount thereof. The owner shall, before any timber in the forest is cut or
removed, give a bond payable to the state of Minnesota, or in lieu thereof, a deposit in
cash with the county treasurer, in the amount required by the report, which shall be and not
less than 150 percent of the amount of the levy, conditioned for the payment of all taxes on
the timber to be cut or removed. Upon receipt of notification from the county auditor that
the bond or cash requirement has been deposited, the director of lands and forestry will
issue a cutting permit in accordance with the report. The owner shall keep an accurate
count or scale of all timber cut. On or before the fifteenth day of April 15 following
issuance of such the cutting permit, and on or before the fifteenth day of April 15 of each
succeeding year in which any merchantable wood products were cut on auxiliary forest
lands prior to the termination of such the permit, the owner of the timber covered by the
permit shall file with the director of lands and forestry a sworn statement, submitted in
duplicate, on a form prepared by the director of lands and forestry, one copy of which
shall must be transmitted to the county auditor, specifying the quantity and value of each
variety of timber and kind of product cut during the preceding year ending on March 31,
as shown by the scale or measurement thereof made on the ground as cut, skidded, or
loaded as the case may be. If no such scale or measurement shall have been was made on
the ground, an estimate thereof shall must be made and such estimate corrected by the first
scale or measurement, made in the due course of business, and such. The correction must
at once be filed with the director of lands and forestry who shall immediately transmit it to
the county auditor. On or before the fifteenth day of May 15 following the filing of the
sworn statement covering the quantity and value of timber cut under an authorized permit,
the auditor shall assess and levy a yield (severance) tax, according to Minnesota Statutes
2014,
section 88.51, subdivision 2, of the timber cut during the year ending on the March
31st 31 preceding the date of assessing and levying this tax. This tax is payable and must
be paid to the county treasurer on or before the following May 31 next following. Copies
of the yield (severance) tax assessment and of the yield (severance) tax payment shall must
be filed with the director of lands and forestry and the county auditor. Except as otherwise
provided, all yield (severance) taxes herein provided for shall must be levied and collected,
and payment thereof, with penalties and interest, enforced in the same manner as taxes
imposed under the provisions of section 88.51, subdivision 1, and shall must be credited to
the funds of the taxing districts affected in the proportion of their interests in the taxes on
the land producing the yield (severance) tax. At any time On deeming it necessary, the
director of lands and forestry may order an inspection of any or all cutting areas within
an auxiliary forest and also may require the owner of the auxiliary forest to produce for
inspection by the director of lands and forestry of any or all cutting records pertaining to
timber cutting operations within an auxiliary forest for the purpose of determining the
accuracy of scale or measurement reports, and if intentional error in scale or measurement
reports is found to exist, shall levy and assess a tax triple the yield (severance) tax on the
stumpage value of the timber cut in excess of the quantity and value reported.

(b) The following alternative method of assessing and paying annually the yield tax
on an auxiliary forest is to be available to an auxiliary forest owner upon application and
upon approval of the county board of the county within which the auxiliary forest is located.

For auxiliary forests entered under this subdivision paragraph, the county auditor
shall assess and levy the yield tax by multiplying the acreage of each legal description
included within the auxiliary forest by the acre quantity of the annual growth by species,
calculated in cords, or in thousands of feet board measure Minnesota standard log scale
rule, whichever is more reasonably usable, for the major species found in each type by
the from year-to-year appraised stumpage prices for each of these species, used by the
Division of Lands and Forestry, Department of Natural Resources, in selling trust fund
timber located within the district in which the auxiliary forest is located. The assessed
value of the annual growth of the auxiliary forest, thus determined, shall be is subject to
a ten percent of stumpage value yield tax, payable annually on or before May 31. In all
other respects the assessment, levying and collection of the yield tax, as provided for in
this subdivision shall must follow the procedures specified in clause paragraph (a).

Forest owners operating under this subdivision shall be paragraph are subject to all
other provisions of the auxiliary forest law except such the provisions of clause paragraph
(a) as that are in conflict with this subdivision paragraph. Penalties for intentional failure
by the owner to report properly the quantity and value of the annual growth upon an
auxiliary forest entered under this subdivision paragraph and for failure to pay the yield
tax when due shall be are the same as the penalties specified in other subdivisions of this
law for like failure to abide by its provisions.

To qualify for the assessment and levying of the yield tax by this method, the
owner of the forest requesting this method of taxation must submit a map or maps
and a tabulation in acres and in quantity of growth by legal descriptions showing the
division of the area covered by the auxiliary forest for which this method of taxation is
requested into the following forest types, namely: white and Norway red pine; jack pine;
aspen-birch; spruce-balsam fir; swamp black spruce; tamarack; cedar; upland hardwoods;
lowland hardwoods; upland brush and grass (temporarily nonproductive); lowland brush
(temporarily nonproductive); and permanently nonproductive (open bogs, stagnant
swamps, rock outcrops, flowage, etc.). Definition of these types and determination of the
average rate or rates of growth (in cords or thousand feet, board measure, Minnesota
standard log scale rule, which ever whichever is more logically applicable for each of
them) shall must be made by the director of the Division of Lands and Forestry, Minnesota
Department of Natural Resources, with the advice and assistance of the land commissioner
of the county in which the auxiliary forest is located; the director of the United States
Forest Service's North Central Forest Experiment Station; and the director of the School of
Forestry, University of Minnesota. Before the approval of the application of the owner of
an auxiliary forest to have the auxiliary or proposed auxiliary forest taxed under provisions
of this subdivision paragraph is submitted to the county board, the distribution between
types of the area as shown on the maps and in the tabulations submitted by the owner of the
auxiliary or proposed auxiliary forest shall must be examined and their accuracy determined
by the director of the Division of Lands and Forestry, Department of Natural Resources,
with the assistance of the county board of the county in which the auxiliary forest is located.

During the life of the auxiliary forest, contract timber cutting operations within the
various types shown upon the type map accepted as a part of the approved auxiliary forest
application shall do not bring about a reclassification of the forest types shown upon that
map or those maps until after the passage of ten years following the termination of said the
timber cutting operations and then only upon proof of a change in type.

Sec. 54.

Minnesota Statutes 2014, section 88.52, subdivision 4, is amended to read:


Subd. 4.

Hearing, procedure.

The owner of any land or timber upon which a yield
tax is assessed and levied as provided in this section may, within 15 days after mailing
of notice of the amount of the tax, file with the county auditor a demand for hearing
thereon on the tax before the county board. The county auditor shall thereupon fix a date
of hearing, which shall must be held within 30 days after the filing of the demand, and
mail to the owner notice of the time and place of the hearing. The owner may appear at
the meeting and present evidence and argument as to the amount of the tax and as to any
related matter relating thereto. The county board shall thereupon determine whether the
tax as levied is proper in amount and make its order thereon. The county auditor shall
forthwith mail to the owner a notice of the order. If the amount of the tax is increased or
reduced by the order, the county auditor shall make a supplemental assessment and levy
thereof, as in this subdivision provided.

Sec. 55.

Minnesota Statutes 2014, section 88.52, subdivision 5, is amended to read:


Subd. 5.

Yield tax, a prior lien.

Throughout the life of any such auxiliary forest,
the yield tax accruing thereon shall constitute and be yield tax constitutes and is a first and
prior lien upon all the merchantable timber and forest products growing or grown thereon;
and, if not paid when due, this yield tax, together with penalties and interest thereon as
otherwise provided by law and all expenses of collecting same, shall continue continues to
be a lien upon the timber and forest products and every part and parcel thereof wherever
the same may be or
however much changed in form or otherwise improved until the yield
tax is fully paid. Such The lien may be foreclosed and the property subject thereto to
the lien
dealt with by action in the name of the state, brought by the county attorney at
the request of the county auditor.

Sec. 56.

Minnesota Statutes 2014, section 88.52, subdivision 6, is amended to read:


Subd. 6.

Timber held exempt from yield tax.

Timber cut from an auxiliary forest
by an owner and used by the owner for fuel, fencing, or building on land occupied by the
owner which is within or contiguous to the auxiliary forest where cut shall be is exempt
from the yield tax, and, as to timber so cut and used, the requirements of subdivisions
1 and 2 shall do not be applicable and in lieu thereof apply. The owner shall, prior to
cutting, file with the county auditor, on a form prepared by the commissioner, a statement
showing the quantity of each kind of forest products proposed to be cut and the purposes
for which the same the products will be used.

Sec. 57.

Minnesota Statutes 2014, section 88.523, is amended to read:


88.523 AUXILIARY FOREST CONTRACTS; SUPPLEMENTAL
AGREEMENTS.

Upon application of the owner, any auxiliary forest contract heretofore or hereafter
executed
may be made subject to any provisions of law enacted subsequent to the execution
of the contract and in force at the time of application, so far as not already applicable, with
the approval of the county board and the commissioner of natural resources. As evidence
thereof
A supplemental agreement in a form prescribed by the commissioner and approved
by the attorney general shall must be executed by the commissioner in behalf of the state
and by the owner. Such The supplemental agreement shall must be filed and recorded in
like manner as the original supplemental contract under section 88.49, subdivision 9, and
shall thereupon take takes effect upon filing and recording.

Sec. 58.

Minnesota Statutes 2014, section 88.53, subdivision 1, is amended to read:


Subdivision 1.

Time for disposal.

Any corporation, association, or organization
may acquire and hold any amount of land without restriction and without limit as to
acreage or quantity for the purpose of including same within and holding same as an
auxiliary forest under the provisions of sections 88.47 to 88.53.
When the same shall
cease
land ceases to be an auxiliary forest, the owners shall have five years within which
to dispose of the land, any provisions of general law to the contrary notwithstanding.

Sec. 59.

Minnesota Statutes 2014, section 88.53, subdivision 2, is amended to read:


Subd. 2.

Rules.

The director shall make rules and adopt and prescribe such forms
and procedure as shall be is necessary in carrying out the provisions of sections 88.47
88.49 to 88.53; and the director and every county board, county recorder, registrar of titles,
assessor, tax collector, and every other person in official authority having any duties to
perform under or growing out of sections 88.47 88.49 to 88.53 are hereby severally vested
with full power and authority to enforce such rules, employ help and assistance, acquire
and use equipment and supplies, or do any other act or thing reasonably necessary to the
proper performance of duties under or arising from the administration and enforcement of
sections 88.47 88.49 to 88.53. It shall be the duty of The director to must cause periodic
inspections to be made of all auxiliary forests for the purpose of determining whether
relative contract and statutory provisions relative thereto are being complied with.

Sec. 60.

Minnesota Statutes 2014, section 88.6435, subdivision 4, is amended to read:


Subd. 4.

Forest bough account; disposition of fees.

(a) The forest bough account
is established in the state treasury within the natural resources fund.

(b) Fees for permits issued under this section shall must be deposited in the state
treasury and credited to the forest bough account and, except for the electronic licensing
system commission established by the commissioner under section 84.027, subdivision
15
, are annually appropriated to the commissioner of natural resources for costs associated
with balsam bough educational special forest product information and education programs
for harvesters and buyers.

Sec. 61.

Minnesota Statutes 2014, section 90.14, is amended to read:


90.14 AUCTION SALE PROCEDURE.

(a) All state timber shall be offered and sold by the same unit of measurement as it
was appraised. No tract shall be sold to any person other than the purchaser in whose name
the bid was made. The commissioner may refuse to approve any and all bids received and
cancel a sale of state timber for good and sufficient reasons.

(b) The purchaser at any sale of timber shall, immediately upon the approval of the
bid, or, if unsold at public auction, at the time of purchase at a subsequent sale under section
90.101, subdivision 1, pay to the commissioner a down payment of 15 percent of the
appraised value. In case any purchaser fails to make such payment, the purchaser shall be
liable therefor to the state in a civil action, and the commissioner may reoffer the timber for
sale as though no bid or sale under section 90.101, subdivision 1, therefor had been made.

(c) In lieu of the scaling of state timber required by this chapter, a purchaser of state
timber may, at the time of payment by the purchaser to the commissioner of 15 percent
of the appraised value, elect in writing on a form prescribed by the attorney general to
purchase a permit based solely on the appraiser's estimate of the volume of timber described
in the permit, provided that the commissioner has expressly designated the availability of
such option for that tract on the list of tracts available for sale as required under section
90.101. A purchaser who elects in writing on a form prescribed by the attorney general
to purchase a permit based solely on the appraiser's estimate of the volume of timber
described on the permit does not have recourse to the provisions of section 90.281.

(d) In the case of a public auction sale conducted by a sealed bid process, tracts shall
be awarded to the high bidder, who shall pay to the commissioner a down payment of 15
percent of the appraised value that must be received or postmarked within 14 days of
the date of the sealed bid opening. If a purchaser fails to make the down payment, the
purchaser is liable for the down payment to the state and the commissioner may offer the
timber for sale to the next highest bidder as though no higher bid had been made.

(e) Except as otherwise provided by law, at the time the purchaser signs a permit
issued under section 90.151, the commissioner shall require the purchaser to make a bid
guarantee payment to the commissioner in an amount equal to 15 percent of the total
purchase price of the permit less the down payment amount required by paragraph (b)
for any bid increase in excess of $5,000 $10,000 of the appraised value. If a required bid
guarantee payment is not submitted with the signed permit, no harvesting may occur, the
permit cancels, and the down payment for timber forfeits to the state. The bid guarantee
payment forfeits to the state if the purchaser and successors in interest fail to execute
an effective permit.

EFFECTIVE DATE.

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

Sec. 62.

Minnesota Statutes 2014, section 90.193, is amended to read:


90.193 EXTENSION OF TIMBER PERMITS.

The commissioner may, in the case of an exceptional circumstance beyond the
control of the timber permit holder which makes it unreasonable, impractical, and not
feasible to complete cutting and removal under the permit within the time allowed, grant
one regular extension for one year. A written request for the regular extension must be
received by the commissioner before the permit expires. The request must state the reason
the extension is necessary and be signed by the permit holder. An interest rate of eight
five percent may be charged for the period of extension.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 63.

[92.83] CONDEMNATION OF SCHOOL TRUST LAND.

Subdivision 1.

Purpose.

The purpose of this section is to extinguish the school trust
interest in school trust lands where long-term economic return is prohibited by designation
or policy while producing economic benefits for Minnesota's public schools. For the
purposes of satisfying the Minnesota Constitution, article XI, section 8, which limits the
sale of school trust lands to a public sale, the commissioner of natural resources shall
acquire school trust lands through condemnation, as provided in subdivision 2.

Subd. 2.

Commencement of condemnation proceedings.

When the commissioner
of natural resources has determined sufficient money is available to acquire any of the
lands identified under section 84.027, subdivision 18, paragraph (c), the commissioner
shall proceed to extinguish the school trust interest by condemnation action. When
requested by the commissioner, the attorney general shall commence condemnation of
the identified school trust lands.

Subd. 3.

Payment.

The portion of the payment of the award and judgment that
is for the value of the land shall be deposited into the permanent school fund. The
remainder of the award and judgment payment shall first be remitted for reimbursement
to the accounts from which expenses were paid, with any remainder deposited into the
permanent school fund.

Subd. 4.

Account.

The school trust lands account is created in the state treasury.
Money credited to the account is appropriated to the commissioner of natural resources
for the purposes of this section.

Sec. 64.

Minnesota Statutes 2014, section 94.10, subdivision 2, is amended to read:


Subd. 2.

Public sale requirements.

(a) After complying with subdivision 1 and
before any public sale of surplus state-owned land is made and at least 30 days before
the sale, the commissioner of natural resources shall publish a notice of the sale in a
newspaper of general distribution in the county in which the real property to be sold is
situated. The notice shall specify the time and place at which the sale will commence, a
general description of the lots or tracts to be offered, and a general statement of the terms
of sale. The commissioner shall also provide electronic notice of sale.

(b) The minimum bid for a parcel of land must include the estimated value or
appraised value of the land and any improvements and, if any of the land is valuable for
merchantable timber, the value of the merchantable timber. The minimum bid may include
expenses incurred by the commissioner in rendering the property salable, including
survey, appraisal, legal, advertising, and other expenses.

(c) Except as provided under paragraph (d), parcels remaining unsold after the
offering may be sold to anyone agreeing to pay at least 75 percent of the appraised
value. The sale shall continue until all parcels are sold or until the commissioner orders a
reappraisal or withdraws the remaining parcels from sale.

(d) The commissioner may retain the services of a licensed real estate broker to find
a buyer for parcels remaining unsold after the offering. The sale price may be negotiated
by the broker, but must not be less than 90 percent of the appraised value as determined by
the commissioner. The broker's fee must be established by prior agreement between the
commissioner and the broker and must not exceed ten percent of the sale price for sales of
$10,000 or more. The broker's fee must be paid to the broker from the proceeds of the sale.

Sec. 65.

Minnesota Statutes 2014, section 94.16, subdivision 2, is amended to read:


Subd. 2.

Payment of expenses.

A portion of the proceeds from the sale equal
in amount to the survey, appraisal, legal, advertising, real estate broker fee, and other
expenses incurred by the commissioner of natural resources in rendering the property
salable and sold shall be remitted to the account from which the expenses were paid,
and are appropriated and immediately available for expenditure in the same manner as
other money in the account.

Sec. 66.

Minnesota Statutes 2014, section 94.16, subdivision 3, is amended to read:


Subd. 3.

Proceeds from natural resources land.

(a) Except as provided in
paragraph paragraphs (b) and (c), the remainder of the proceeds from the sale of lands
classified as a unit of the outdoor recreation system under section 86A.05 that were under
the control and supervision of the commissioner of natural resources shall be credited to
the land acquisition account in the natural resources fund.

(b) The remainder of the proceeds from the sale of administrative sites under the
control and supervision of the commissioner of natural resources shall be credited to the
facilities management account established under section 84.0857 and used to acquire
facilities or renovate existing buildings for administrative use or to acquire land for,
design, and construct administrative buildings for the Department of Natural Resources.

(c) The remainder of the proceeds from the sale of land not within a unit of the
outdoor recreation system under section 86A.05 and not an administrative site, but under
the control and supervision of the commissioner of natural resources, shall be credited to
the school trust lands account established under section 92.83.

Sec. 67.

Minnesota Statutes 2014, section 97A.055, subdivision 4b, is amended to read:


Subd. 4b.

Citizen oversight committees.

(a) The commissioner shall appoint
committees of affected persons to review the reports prepared under subdivision 4; review
the proposed work plans and budgets for the coming year; propose changes in policies,
activities, and revenue enhancements or reductions; review other relevant information;
and make recommendations to the legislature and the commissioner for improvements in
the management and use of money in the game and fish fund.

(b) The commissioner shall appoint the following committees, each comprised
of at least ten affected persons:

(1) a Fisheries Oversight Committee to review fisheries funding and expenditures,
including activities related to trout and salmon stamps and walleye stamps; and

(2) a Wildlife Oversight Committee to review wildlife funding and expenditures,
including activities related to migratory waterfowl, pheasant, and wild turkey management
and deer and big game management.

(c) The chairs of the Fisheries Oversight Committee and the Wildlife Oversight
Committee, and four additional members from each committee, shall form a Budgetary
Oversight Committee to coordinate the integration of the fisheries and wildlife oversight
committee reports into an annual report to the legislature; recommend changes on a broad
level in policies, activities, and revenue enhancements or reductions; and provide a forum
to address issues that transcend the fisheries and wildlife oversight committees.

(d) The Budgetary Oversight Committee shall develop recommendations for a
biennial budget plan and report for expenditures on game and fish activities. By August 15
of each even-numbered year, the committee shall submit the budget plan recommendations
to the commissioner and to the senate and house of representatives committees with
jurisdiction over natural resources finance.

(e) The chairs of the Fisheries Oversight Committee and the Wildlife Oversight
Committee shall be chosen by their respective committees. The chair of the Budgetary
Oversight Committee shall be appointed by the commissioner and may not be the chair of
either of the other oversight committees.

(f) The Budgetary Oversight Committee may make recommendations to the
commissioner and to the senate and house of representatives committees with jurisdiction
over natural resources finance for outcome goals from expenditures.

(g) The committees authorized under this subdivision are not advisory councils or
committees governed by section 15.059 and are not subject to section 15.059. Committee
members appointed by the commissioner may request reimbursement for mileage
expenses in the same manner and amount as authorized by the commissioner's plan
adopted under section 43A.18, subdivision 2. Committee members must not receive daily
compensation for oversight activities. The Fisheries Oversight Committee, the Wildlife
Oversight Committee, and the Budgetary Oversight Committee expire June 30, 2015 2020.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 68.

Minnesota Statutes 2014, section 97B.668, is amended to read:


97B.668 CANADA GEESE GAME BIRDS CAUSING DAMAGE.

Notwithstanding sections 97B.091 and 97B.805, subdivisions 1 and 2, a person or
agent of that person on lands and nonpublic waters owned or operated by the person
may nonlethally scare, haze, chase, or harass Canada geese game birds that are causing
property damage from March 11 to August 31 or to protect a disease risk at any time or
place that a hunting season for the game birds is not open
. This section does not apply to
public waters as defined under section 103G.005, subdivision 15, or. This section does not
apply to migratory waterfowl on nests and other federally protected game birds on nests,
except ducks and
geese on nests unless when a permit is obtained under section 97A.401.

Sec. 69.

Minnesota Statutes 2014, section 97C.301, is amended by adding a
subdivision to read:


Subd. 2a.

Aquatic invasive species affirmation.

(a) A nonresident license to
take fish issued under section 97A.475, subdivision 7, includes aquatic invasive species
affirmation as provided in section 84D.106.

(b) The aquatic invasive species affirmation portion of the license must be displayed
with the signed nonresident license to take fish issued under section 97A.475, subdivision
7. The aquatic invasive species affirmation will be provided at the time of purchase of a
new or duplicate nonresident license.

(c) If a license is purchased online, the aquatic invasive species affirmation may be
completed electronically as part of the online sales process, and the electronic record of
the license sale is sufficient for documenting the affirmation.

(d) Failure to complete the aquatic invasive species affirmation in this subdivision is
subject to the penalty prescribed in section 84D.13, subdivision 5.

EFFECTIVE DATE.

This section is effective March 1, 2016.

Sec. 70.

Minnesota Statutes 2014, section 103B.101, is amended by adding a
subdivision to read:


Subd. 12a.

Authority to issue penalty orders.

(a) A county or watershed district
with jurisdiction or the Board of Water and Soil Resources may issue an order requiring
violations of the water resources riparian protection requirements under sections 103F.48,
103F.415, and 103F.421, to be corrected and administratively assessing monetary
penalties up to $500 for noncompliance commencing on day one of the 11th month
after the noncompliance notice was issued. One-half of the proceeds collected from an
administrative penalty order issued under this section must be remitted to the county or
watershed district with jurisdiction over the noncompliant site.

(b) Administrative penalties may be reissued and appealed under paragraph (a)
according to section 103F.48, subdivision 9.

Sec. 71.

Minnesota Statutes 2014, section 103B.101, is amended by adding a
subdivision to read:


Subd. 16.

Wetland stakeholder coordination.

The board shall work with
wetland stakeholders to foster mutual understanding and provide recommendations for
improvements to the management of wetlands and related land and water resources,
including recommendations for updating the Wetland Conservation Act, developing
an in-lieu fee program as defined in section 103G.005, subdivision 10g, and related
provisions. The board may convene informal working groups or work teams to provide
information and education and to develop recommendations.

Sec. 72.

[103B.103] EASEMENT STEWARDSHIP ACCOUNTS.

Subdivision 1.

Accounts established; sources.

(a) The water and soil conservation
easement stewardship account and the mitigation easement stewardship account are
created in the special revenue fund. The accounts consist of money credited to the
accounts and interest and other earnings on money in the accounts. The State Board of
Investment must manage the accounts to maximize long-term gain.

(b) Revenue from contributions and money appropriated for any purposes of the
account as described in subdivision 2 must be deposited in the water and soil conservation
easement stewardship account. Revenue from contributions, wetland banking fees
designated for stewardship purposes by the board, easement stewardship payments
authorized under subdivision 3, and money appropriated for any purposes of the account
as described in subdivision 2 must be deposited in the mitigation easement stewardship
account.

Subd. 2.

Appropriation; purposes of accounts.

Five percent of the balance on
July 1 each year in the water and soil conservation easement stewardship account and
five percent of the balance on July 1 each year in the mitigation easement stewardship
account are annually appropriated to the board and may be spent only to cover the costs
of managing easements held by the board, including costs associated with monitoring,
landowner contacts, records storage and management, processing landowner notices,
requests for approval or amendments, enforcement, and legal services associated with
easement management activities.

Subd. 3.

Financial contributions.

The board shall seek a financial contribution
to the water and soil conservation easement stewardship account for each conservation
easement acquired by the board. The board shall seek a financial contribution or assess an
easement stewardship payment to the mitigation easement stewardship account for each
wetland banking easement acquired by the board. Unless otherwise provided by law,
the board shall determine the amount of the contribution or payment, which must be an
amount calculated to earn sufficient money to meet the costs of managing the easement at
a level that neither significantly overrecovers nor underrecovers the costs. In determining
the amount of the financial contribution, the board shall consider:

(1) the estimated annual staff hours needed to manage the conservation easement,
taking into consideration factors such as easement type, size, location, and complexity;

(2) the average hourly wages for the class or classes of state and local employees
expected to manage the easement;

(3) the estimated annual travel expenses to manage the easement;

(4) the estimated annual miscellaneous costs to manage the easement, including
supplies and equipment, information technology support, and aerial flyovers;

(5) the estimated annualized costs of legal services, including the cost to enforce the
easement in the event of a violation; and

(6) the expected rate of return on investments in the account.

EFFECTIVE DATE.

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

Sec. 73.

Minnesota Statutes 2014, section 103B.3355, is amended to read:


103B.3355 WETLAND FUNCTIONS FOR DETERMINING PUBLIC
VALUES.

(a) The public values of wetlands must be determined based upon the functions of
wetlands for:

(1) water quality, including filtering of pollutants to surface and groundwater,
utilization of nutrients that would otherwise pollute public waters, trapping of sediments,
shoreline protection, and utilization of the wetland as a recharge area for groundwater;

(2) floodwater and storm water retention, including the potential for flooding in
the watershed, the value of property subject to flooding, and the reduction in potential
flooding by the wetland;

(3) public recreation and education, including hunting and fishing areas, wildlife
viewing areas, and nature areas;

(4) commercial uses, including wild rice and cranberry growing and harvesting
and aquaculture;

(5) fish, wildlife, native plant habitats;

(6) low-flow augmentation;

(7) carbon sequestration; and

(8) other public uses.

(b) The Board of Water and Soil Resources, in consultation with the commissioners of
natural resources and agriculture and local government units, shall adopt rules establishing:

(1) scientific methodologies for determining the functions of wetlands; and

(2) criteria for determining the resulting public values of wetlands.

(c) The methodologies and criteria established under this section or other
methodologies and criteria that include the functions in paragraph (a) and are approved
by the board, in consultation with the commissioners of natural resources and agriculture
and local government units, must be used to determine the functions and resulting public
values of wetlands in the state. The functions listed in paragraph (a) are not listed in
order of priority.

(d) Public value criteria established or approved by the board under this section do
not apply in areas subject to local comprehensive wetland protection and management
plans established under section 103G.2243.

(e) The Board of Water and Soil Resources, in consultation with the commissioners
of natural resources and agriculture and local government units, may must identify regions
areas of the state where preservation, enhancement, restoration, and establishment
of wetlands would have high public value. The board, in consultation with the
commissioners, may must identify high priority wetland regions areas for wetland
replacement
using available information relating to the factors listed in paragraph
(a), the historic loss and abundance of wetlands, current applicable state and local
government water management and natural resource plans, and studies using a watershed
approach to identify current and future watershed needs
. The board shall notify local
units of government with water planning authority of these high priority regions areas.
Designation of high priority areas is exempt from the rulemaking requirements of chapter
14, and section 14.386 does not apply. Designation of high priority areas is not effective
until 30 days after publication in the State Register
.

(f) Local units of government, as part of a state-approved comprehensive local
water management plan as defined in section 103B.3363, subdivision 3, a state-approved
comprehensive watershed management plan as defined in section 103B.3363, subdivision
3a, or a state-approved local comprehensive wetland protection and management plan
under section 103G.2243, may identify priority areas for wetland replacement and provide
them for consideration under paragraph (e).

Sec. 74.

Minnesota Statutes 2014, section 103D.335, subdivision 21, is amended to
read:


Subd. 21.

Contracts.

The managers may make contracts or other arrangements with
the federal government, persons, railroads or other corporations, political subdivisions,
and the state or other states, with drainage authorities, flood control, soil conservation,
or other improvement districts in this state or other states, for cooperation or assistance
in constructing, maintaining, and operating the projects of the watershed district, or for
the control of its waters, or for making surveys and investigations or reports on them.
Property acquired for flood damage reduction purposes by the watershed district may be
operated or leased by the district for agricultural purposes during periods the property is
not needed for flood control, provided it remains subject to use by the watershed district
as necessary for flood control purposes. Notwithstanding section 16A.695, revenue
received by the watershed district from the operation or lease of state bond financed
property acquired for flood control purposes shall be retained by the district in a separate
project-specific account and used solely for flood control operation, maintenance, and
replacement purposes within the related project area and, if the district determines that the
account contains adequate reserves for future operation, maintenance, and replacement,
any excess may be used for the construction, operation, maintenance, or replacement of
other flood control projects as approved by the commissioner.

Sec. 75.

Minnesota Statutes 2014, section 103F.421, subdivision 4, is amended to read:


Subd. 4.

Application for cost-sharing funds.

The landowner has 90 days after a
mediated settlement is filed complaint is substantiated to apply for state cost-sharing funds
that will provide 75 percent of the cost of the permanent conservation practices. Only 50
Fifty percent of the cost share will be provided if the application is not made within 90
days after the settlement is filed, unless the soil and water conservation district or the
board provides an extension. An extension must be granted if funds are not available
. The
landowner must apply for 50 percent of the cost share within 270 days after the mediated
settlement is filed.

Sec. 76.

Minnesota Statutes 2014, section 103F.421, is amended by adding a
subdivision to read:


Subd. 6.

Application of state and federal law.

Nothing in this section is intended
to preclude the application of other applicable state or federal law.

Sec. 77.

[103F.48] RIPARIAN PROTECTION AND WATER QUALITY
PRACTICES.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms
have the meanings given them.

(b) "Board" means the Board of Water and Soil Resources.

(c) "Buffer" means an area consisting of perennial vegetation, excluding invasive
plants and noxious weeds, adjacent to all bodies of water within the state and that protects
the water resources of the state from runoff pollution; stabilizes soils, shores, and banks;
and protects or provides riparian corridors.

(d) "Buffer protection map" means buffer maps established and maintained by the
commissioner of natural resources.

(e) "Commissioner" means the commissioner of natural resources.

(f) "Executive director" means the executive director of the Board of Water and
Soil Resources.

(g) "Local water management authority" means a watershed district, metropolitan
water management organization, or county operating separately or jointly in its role as
local water management authority under chapter 103B or 103D.

(h) "Normal water level" means the level evidenced by the long-term presence of
surface water as indicated directly by hydrophytic plants or hydric soils or indirectly
determined via hydrological models or analysis.

(i) "Public waters" has the meaning given in section 103G.005, subdivision 15.

Subd. 2.

Purpose.

It is the policy of the state to establish riparian buffers and
water quality practices to:

(1) protect state water resources from erosion and runoff pollution;

(2) stabilize soils, shores, and banks; and

(3) protect or provide riparian corridors.

Subd. 3.

Water resources riparian protection requirements on public waters
and public drainage systems.

(a) Except as provided in paragraph (b), landowners
owning property adjacent to a water body identified and mapped on a buffer protection
map must maintain a buffer to protect the state's water resources as follows:

(1) for all public waters, the more restrictive of:

(i) a 50-foot average width, 30-foot minimum width, continuous buffer of
perennially rooted vegetation; or

(ii) the state shoreland standards and criteria adopted by the commissioner under
section 103F.211; and

(2) for public drainage systems established under chapter 103E, a 16.5-foot
minimum width continuous buffer of perennially rooted vegetation on ditches within the
benefited area of public drainage systems.

(b) A landowner owning property adjacent to a water body identified in a buffer
protection map and whose property is used for cultivation farming may meet the
requirements under paragraph (a) by adopting an alternative riparian water quality
practice, or combination of structural, vegetative, and management practices, based on the
Natural Resources Conservation Service Field Office Technical Guide or other practices
approved by the board, that provide water quality protection comparable to the buffer
protection for the water body that the property abuts.

(c) The width of a buffer must be measured from the top or crown of the bank. Where
there is no defined bank, measurement must be from the edge of the normal water level.

(d) Upon request by a landowner or authorized agent or operator of a landowner,
a technical professional employee or contractor of the soil and water conservation
district or its delegate may issue a validation of compliance with the requirements of
this subdivision. The soil and water conservation district validation may be appealed to
the board as described in subdivision 9.

(e) Buffers or alternative water quality practices required under paragraph (a) or
(b) must be in place on or before:

(1) November 1, 2017, for public waters; and

(2) November 1, 2018, for public drainage systems.

Subd. 4.

Local water resources riparian protection.

On or before July 1, 2017,
the soil and water conservation district shall develop, adopt, and submit to each local
water management authority within its boundary a summary of watercourses for inclusion
in the local water management authority's plan. A local water management authority that
receives a summary of watercourses identified under this subdivision must revise its
comprehensive local water management plan or comprehensive watershed management
plan to incorporate the soil and water conservation district recommendations.

Subd. 5.

Exemptions.

Land adjacent to waters subject to subdivision 3 is exempt
from the water resource protection requirements under subdivision 3, to the extent these
exemptions are not inconsistent with the requirements of the state shoreland rules adopted
by the commissioner pursuant to section 103F.211, if it is:

(1) enrolled in the federal Conservation Reserve Program;

(2) used as a public or private water access or recreational use area including
stairways, landings, picnic areas, access paths, beach and watercraft access areas, and
permitted water-oriented structures as provided in the shoreland model standards and
criteria adopted pursuant to section 103F.211 or as provided for in an approved local
government shoreland ordinance;

(3) covered by a road, trail, building, or other structures; or

(4) regulated by a national pollutant discharge elimination system/state disposal
system (NPDES/SDS) permit under Minnesota Rules, chapter 7090, and provides water
resources riparian protection, in any of the following categories:

(i) municipal separate storm sewer system (MS4);

(ii) construction storm water (CSW); or

(iii) industrial storm water (ISW);

(5) part of a water-inundation cropping system; or

(6) in a temporary nonvegetated condition due to drainage tile installation and
maintenance, alfalfa or other perennial crop or plant seeding, or construction or
conservation projects authorized by a federal, state, or local government unit.

Subd. 6.

Local implementation and assistance.

(a) Soil and water conservation
districts must assist landowners with implementation of the water resource riparian
protection requirements established in this section. For the purposes of this subdivision,
assistance includes planning, technical assistance, implementation of approved alternative
practices, and tracking progress towards compliance with the requirements.

(b) The commissioner or the board must provide sufficient funding to soil and water
conservation districts to implement this section.

Subd. 7.

Corrective actions.

(a) If the soil and water conservation district
determines a landowner is not in compliance with this section, the district must notify the
county or watershed district with jurisdiction over the noncompliant site. The county or
watershed district must provide the landowner with a list of corrective actions needed to
come into compliance and a practical timeline to meet the requirements in this section.
The county or watershed district with jurisdiction must provide a copy of the corrective
action notice to the board.

(b) If the landowner does not comply with the list of actions and timeline provided,
the county or watershed district may enforce this section under the authority granted in
section 103B.101, subdivision 12a. Before exercising this authority, a county or watershed
district must adopt a plan containing procedures for the issuance of administrative penalty
orders and may issue orders beginning November 1, 2017. If a county or watershed
district with jurisdiction over the noncompliant site has not adopted a plan under this
paragraph, the board may enforce this section under the authority granted in section
103B.101, subdivision 12a.

(c) If the county, watershed district, or board determines that sufficient steps have
been taken to fully resolve noncompliance, all or part of the penalty may be forgiven.

(d) An order issued under paragraph (b) may be appealed to the board as provided
under subdivision 9.

(e) A corrective action is not required for conditions resulting from a flood or other
act of nature.

(f) A landowner agent or operator of a landowner may not remove or willfully degrade
a riparian buffer or water quality practice, wholly or partially, unless the agent or operator
has obtained a signed statement from the property owner stating that the permission for the
work has been granted by the unit of government authorized to approve the work in this
section or that a buffer or water quality practice is not required as validated by the soil and
water conservation district. Removal or willful degradation of a riparian buffer or water
quality practice, wholly or partially, by an agent or operator is a separate and independent
offense and may be subject to the corrective actions and penalties in this subdivision.

Subd. 8.

Funding subject to withholding.

The state may withhold funding from a
local water management authority or a soil and water conservation district that fails to
implement this section. Funding subject to withholding includes soil and water program
aid, a natural resources block grant, and other project or program funding. Funding may
be restored upon the board's approval of a corrective action plan.

Subd. 9.

Appeals of validations and penalty orders.

A landowner or agent or
operator may appeal the terms and conditions of a soil and water conservation district
validation or an administrative penalty order to the board within 30 days of receipt of
written or electronic notice of the validation or order. The request for appeal must be in
writing. The appealing party must provide a copy of the validation or order that is being
appealed, the basis for the appeal, and any supporting evidence. The request for appeal
may be submitted personally, by first class mail, or electronically to the executive director.
If a written or electronic request for appeal is not submitted within 30 days, the validation
or order is final. The executive director shall review the request and supporting evidence
and issue a decision within 60 days of receipt of an appeal. The executive director's
decision is appealable directly to the Court of Appeals pursuant to sections 14.63 to 14.69.

Subd. 10.

Landowner financial assistance and public drainage system procedure.

(a) A landowner or drainage authority may contact the soil and water conservation district
for information on how to apply for local, state, or federal cost-share grants, contracts, or
loans that are available to establish buffers or other water resource protection measures.

(b) The provisions of sections 103E.011, subdivision 5; 103E.021, subdivision 6;
and 103E.715 may be used in advance or retroactively to acquire or provide compensation
for all or part of the buffer strip establishment or alternative riparian water quality
practices as required under subdivision 3, paragraph (a), within the benefited area of a
public drainage system. Implementation of this subdivision is not subject to limitation of
project costs to the current benefits adopted for the drainage system.

Subd. 11.

State lands.

This section applies to the state and its departments and
agencies.

Sec. 78.

Minnesota Statutes 2014, section 103F.612, subdivision 2, is amended to read:


Subd. 2.

Application.

(a) A wetland owner may apply to the county where a
wetland is located for designation of a wetland preservation area in a high priority wetland
area identified in a comprehensive local water plan, as defined in section 103B.3363,
subdivision 3
, and located within a high priority wetland region
designated by the Board
of Water and Soil Resources, if the county chooses to accept wetland preservation area
applications. The application must be made on forms provided by the board. If a wetland
is located in more than one county, the application must be submitted to the county where
the majority of the wetland is located.

(b) The application shall be executed and acknowledged in the manner required
by law to execute and acknowledge a deed and must contain at least the following
information and other information the Board of Water and Soil Resources requires:

(1) legal description of the area to be approved, which must include an upland strip
at least 16-1/2 feet in width around the perimeter of wetlands within the area and may
include total upland area of up to four acres for each acre of wetland;

(2) parcel identification numbers where designated by the county auditor;

(3) name and address of the owner;

(4) a statement by the owner covenanting that the land will be preserved as a wetland
and will only be used in accordance with conditions prescribed by the Board of Water and
Soil Resources and providing that the restrictive covenant will be binding on the owner
and the owner's successors or assigns, and will run with the land.

(c) The upland strip required in paragraph (b), clause (1), must be planted with
permanent vegetation other than a noxious weed.

Sec. 79.

Minnesota Statutes 2014, section 103G.005, is amended by adding a
subdivision to read:


Subd. 10g.

In-lieu fee program.

"In-lieu fee program" means a program in which
wetland replacement requirements of section 103G.222 are satisfied through payment of
money to the board or a board-approved sponsor to develop replacement credits according
to section 103G.2242, subdivision 12.

Sec. 80.

Minnesota Statutes 2014, section 103G.222, subdivision 1, is amended to read:


Subdivision 1.

Requirements.

(a) Wetlands must not be drained or filled, wholly or
partially, unless replaced by restoring or creating wetland areas of actions that provide
at least equal public value under a replacement plan approved as provided in section
103G.2242, a replacement plan under a local governmental unit's comprehensive wetland
protection and management plan approved by the board under section 103G.2243, or, if a
permit to mine is required under section 93.481, under a mining reclamation plan approved
by the commissioner under the permit to mine. For project-specific wetland replacement
completed prior to wetland impacts authorized or conducted under a permit to mine within
the Great Lakes and Rainy River watershed basins, those basins shall be considered a single
watershed for purposes of determining wetland replacement ratios. Mining reclamation
plans shall apply the same principles and standards for replacing wetlands by restoration
or creation of wetland areas
that are applicable to mitigation plans approved as provided
in section 103G.2242. Public value must be determined in accordance with section
103B.3355 or a comprehensive wetland protection and management plan established
under section 103G.2243. Sections 103G.221 to 103G.2372 also apply to excavation in
permanently and semipermanently flooded areas of types 3, 4, and 5 wetlands.

(b) Replacement must be guided by the following principles in descending order
of priority:

(1) avoiding the direct or indirect impact of the activity that may destroy or diminish
the wetland;

(2) minimizing the impact by limiting the degree or magnitude of the wetland
activity and its implementation;

(3) rectifying the impact by repairing, rehabilitating, or restoring the affected
wetland environment;

(4) reducing or eliminating the impact over time by preservation and maintenance
operations during the life of the activity;

(5) compensating for the impact by restoring a wetland; and

(6) compensating for the impact by replacing or providing substitute wetland
resources or environments.

For a project involving the draining or filling of wetlands in an amount not exceeding
10,000 square feet more than the applicable amount in section 103G.2241, subdivision 9,
paragraph (a), the local government unit may make an on-site sequencing determination
without a written alternatives analysis from the applicant.

(c) If a wetland is located in a cultivated field, then replacement must be accomplished
through restoration only without regard to the priority order in paragraph (b), provided
that the altered wetland is not converted to a nonagricultural use for at least ten years.

(d) If a wetland is replaced under paragraph (c), or drained under section 103G.2241,
subdivision 2
, paragraph (b) or (e), the local government unit may require a deed
restriction that prohibits nonagricultural use for at least ten years. The local government
unit may require the deed restriction if it determines the wetland area drained is at risk of
conversion to a nonagricultural use within ten years based on the zoning classification,
proximity to a municipality or full service road, or other criteria as determined by the
local government unit.

(e) Restoration and replacement of wetlands must be accomplished in accordance
with the ecology of the landscape area affected and ponds that are created primarily to
fulfill storm water management, and water quality treatment requirements may not be
used to satisfy replacement requirements under this chapter unless the design includes
pretreatment of runoff and the pond is functioning as a wetland.

(f) Except as provided in paragraph (g), for a wetland or public waters wetland
located on nonagricultural land, replacement must be in the ratio of two acres of replaced
wetland for each acre of drained or filled wetland.

(g) For a wetland or public waters wetland located on agricultural land or in a greater
than 80 percent area, replacement must be in the ratio of one acre of replaced wetland
for each acre of drained or filled wetland.

(h) Wetlands that are restored or created as a result of an approved replacement plan
are subject to the provisions of this section for any subsequent drainage or filling.

(i) Except in a greater than 80 percent area, only wetlands that have been
restored from previously drained or filled wetlands, wetlands created by excavation in
nonwetlands, wetlands created by dikes or dams along public or private drainage ditches,
or wetlands created by dikes or dams associated with the restoration of previously
drained or filled wetlands may be used in a statewide banking program established in for
wetland replacement according to
rules adopted under section 103G.2242, subdivision 1.
Modification or conversion of nondegraded naturally occurring wetlands from one type to
another are not eligible for enrollment in a statewide wetlands bank wetland replacement.

(j) The Technical Evaluation Panel established under section 103G.2242, subdivision
2
, shall ensure that sufficient time has occurred for the wetland to develop wetland
characteristics of soils, vegetation, and hydrology before recommending that the wetland
be deposited in the statewide wetland bank. If the Technical Evaluation Panel has reason
to believe that the wetland characteristics may change substantially, the panel shall
postpone its recommendation until the wetland has stabilized.

(k) This section and sections 103G.223 to 103G.2242, 103G.2364, and 103G.2365
apply to the state and its departments and agencies.

(l) For projects involving draining or filling of wetlands associated with a new public
transportation project, and for projects expanded solely for additional traffic capacity,
public transportation authorities may purchase credits from the board at the cost to the
board to establish credits. Proceeds from the sale of credits provided under this paragraph
are appropriated to the board for the purposes of this paragraph. For the purposes of this
paragraph, "transportation project" does not include an airport project.

(m) A replacement plan for wetlands is not required for individual projects that
result in the filling or draining of wetlands for the repair, rehabilitation, reconstruction,
or replacement of a currently serviceable existing state, city, county, or town public road
necessary, as determined by the public transportation authority, to meet state or federal
design or safety standards or requirements, excluding new roads or roads expanded solely
for additional traffic capacity lanes. This paragraph only applies to authorities for public
transportation projects that:

(1) minimize the amount of wetland filling or draining associated with the project
and consider mitigating important site-specific wetland functions on site;

(2) except as provided in clause (3), submit project-specific reports to the board, the
Technical Evaluation Panel, the commissioner of natural resources, and members of the
public requesting a copy at least 30 days prior to construction that indicate the location,
amount, and type of wetlands to be filled or drained by the project or, alternatively,
convene an annual meeting of the parties required to receive notice to review projects to
be commenced during the upcoming year; and

(3) for minor and emergency maintenance work impacting less than 10,000 square
feet, submit project-specific reports, within 30 days of commencing the activity, to the board
that indicate the location, amount, and type of wetlands that have been filled or drained.

Those required to receive notice of public transportation projects may appeal
minimization, delineation, and on-site mitigation decisions made by the public
transportation authority to the board according to the provisions of section 103G.2242,
subdivision 9
. The Technical Evaluation Panel shall review minimization and delineation
decisions made by the public transportation authority and provide recommendations
regarding on-site mitigation if requested to do so by the local government unit, a
contiguous landowner, or a member of the Technical Evaluation Panel.

Except for state public transportation projects, for which the state Department of
Transportation is responsible, the board must replace the wetlands, and wetland areas of
public waters if authorized by the commissioner or a delegated authority, drained or filled
by public transportation projects on existing roads.

Public transportation authorities at their discretion may deviate from federal and
state design standards on existing road projects when practical and reasonable to avoid
wetland filling or draining, provided that public safety is not unreasonably compromised.
The local road authority and its officers and employees are exempt from liability for
any tort claim for injury to persons or property arising from travel on the highway and
related to the deviation from the design standards for construction or reconstruction under
this paragraph. This paragraph does not preclude an action for damages arising from
negligence in construction or maintenance on a highway.

(n) If a landowner seeks approval of a replacement plan after the proposed project
has already affected the wetland, the local government unit may require the landowner to
replace the affected wetland at a ratio not to exceed twice the replacement ratio otherwise
required.

(o) A local government unit may request the board to reclassify a county or
watershed on the basis of its percentage of presettlement wetlands remaining. After
receipt of satisfactory documentation from the local government, the board shall change
the classification of a county or watershed. If requested by the local government unit,
the board must assist in developing the documentation. Within 30 days of its action to
approve a change of wetland classifications, the board shall publish a notice of the change
in the Environmental Quality Board Monitor.

(p) One hundred citizens who reside within the jurisdiction of the local government
unit may request the local government unit to reclassify a county or watershed on the basis
of its percentage of presettlement wetlands remaining. In support of their petition, the
citizens shall provide satisfactory documentation to the local government unit. The local
government unit shall consider the petition and forward the request to the board under
paragraph (o) or provide a reason why the petition is denied.

Sec. 81.

Minnesota Statutes 2014, section 103G.222, subdivision 3, is amended to read:


Subd. 3.

Wetland replacement siting.

(a) Impacted wetlands in a 50 to 80 percent
area must be replaced in a 50 to 80 percent area or in a less than 50 percent area. Impacted
wetlands in a less than 50 percent area must be replaced in a less than 50 percent area.
All wetland replacement must follow this priority order:

(1) on site or in the same minor watershed as the impacted wetland;

(2) in the same watershed as the impacted wetland;

(3) in the same county or wetland bank service area as the impacted wetland; and

(4) in another wetland bank service area; and.

(5) statewide for public transportation projects, except that wetlands impacted in
less than 50 percent areas must be replaced in less than 50 percent areas, and wetlands
impacted in the seven-county metropolitan area must be replaced at a ratio of two to one in:
(i) the affected county or, (ii) in another of the seven metropolitan counties, or (iii) in one
of the major watersheds that are wholly or partially within the seven-county metropolitan
area, but at least one to one must be replaced within the seven-county metropolitan area.

(b) The exception in paragraph (a), clause (5), does not apply to replacement
completed using wetland banking credits established by a person who submitted a
complete wetland banking application to a local government unit by April 1, 1996.

(b) Notwithstanding paragraph (a), wetland banking credits approved according to
a complete wetland banking application submitted to a local government unit by April
1, 1996, may be used to replace wetland impacts resulting from public transportation
projects statewide.

(c) Notwithstanding paragraph (a), clauses (1) and (2), the priority order for
replacement by wetland banking begins at paragraph (a), clause (3), according to rules
adopted under section 103G.2242, subdivision 1.

(c) (d) When reasonable, practicable, and environmentally beneficial replacement
opportunities are not available in siting priorities listed in paragraph (a), the applicant
may seek opportunities at the next level.

(d) (e) For the purposes of this section, "reasonable, practicable, and environmentally
beneficial replacement opportunities" are defined as opportunities that:

(1