HF 707

3rd Engrossment - 90th Legislature (2017 - 2018) Posted on 04/24/2017 03:43pm

A bill for an act
relating to state government; appropriating money from outdoor heritage fund,
clean water fund, parks and trails fund, and arts and cultural heritage fund; providing
for riparian protection aid; modifying requirements for expending money from
legacy funds; modifying and extending prior appropriations; requiring reports;
amending Minnesota Statutes 2016, sections 16A.127, subdivision 8; 85.53, by
adding subdivisions; 97A.056, subdivision 3, by adding subdivisions; 114D.50,
subdivision 4, by adding subdivisions; 129D.17, subdivision 4, by adding
subdivisions; Laws 2012, chapter 264, article 1, section 2, subdivision 5, as
amended; Laws 2015, First Special Session chapter 2, article 1, section 2,
subdivision 2, as amended; Laws 2016, chapter 172, article 1, section 2,
subdivisions 2, 4; proposing coding for new law in Minnesota Statutes, chapter
477A; repealing Minnesota Statutes 2016, section 97A.056, subdivision 8.

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

ARTICLE 1

OUTDOOR HERITAGE FUND

Section 1. 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 outdoor heritage
fund for the fiscal year indicated for each purpose. The figures "2018" and "2019" used in
this article mean that the appropriations listed under the figure are available for the fiscal
year ending June 30, 2018, and June 30, 2019, respectively. The "first year" is fiscal year
2018. The "second year" is fiscal year 2019. The "biennium" is fiscal years 2018 and 2019,
respectively. The appropriations in this article are onetime appropriations.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
				2018		2019

Sec. 2. OUTDOOR HERITAGE FUND

Subdivision 1. Total Appropriation

$

103,105,000

$

585,000

Notwithstanding Minnesota Statutes, section
97A.056, subdivision 24, this appropriation is
from the outdoor heritage fund. The amounts
that may be spent for each purpose are
specified in the following subdivisions.

Subd. 2. Prairies

26,614,000

-0-

(a) DNR Wildlife Management Area and Scientific and Natural Area Acquisition - Phase IX

$2,313,000 the first year is to the
commissioner of natural resources to acquire
in fee and restore lands for wildlife
management purposes under Minnesota
Statutes, section 86A.05, subdivision 8, and
to acquire land in fee for scientific and natural
area purposes under Minnesota Statutes,
section 86A.05, subdivision 5. Subject to
evaluation criteria in Minnesota Rules, part
6136.0900, priority must be given to acquiring
lands that are eligible for the native prairie
bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.
A list of proposed land acquisitions must be
provided as part of the required
accomplishment plan.

(b) Accelerating the Wildlife Management Area Acquisition - Phase IX

$3,479,000 the first year is to the
commissioner of natural resources for an
agreement with Pheasants Forever to acquire
in fee and restore lands for wildlife
management area purposes under Minnesota
Statutes, section 86A.05, subdivision 8.
Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given
to acquiring lands that are eligible for the
native prairie bank under Minnesota Statutes,
section 84.96, or lands adjacent to protected
native prairie. A list of proposed land
acquisitions must be provided as part of the
required accomplishment plan.

(c) Minnesota Prairie Recovery Project - Phase VII

$1,901,000 the first year is to the
commissioner of natural resources for an
agreement with The Nature Conservancy to
acquire land in fee for native prairie, wetland,
and savanna and to restore and enhance
grasslands, wetlands, and savanna. Subject to
evaluation criteria in Minnesota Rules, part
6136.0900, priority must be given to acquiring
lands that are eligible for the native prairie
bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.
No later than 180 days after The Nature
Conservancy's fiscal year ends, The Nature
Conservancy must submit to the Lessard-Sams
Outdoor Heritage Council annual income
statements and balance sheets for income and
expenses from land acquired with this
appropriation. A list of proposed land
acquisitions must be provided as part of the
required accomplishment plan and must be
consistent with the priorities identified in
Minnesota Prairie Conservation Plan.

(d) Northern Tallgrass Prairie National Wildlife Refuge Land Acquisition - Phase VIII

$2,683,000 the first year is to the
commissioner of natural resources for an
agreement with The Nature Conservancy in
cooperation with the United States Fish and
Wildlife Service to acquire land in fee or
permanent conservation easements and restore
lands in the Northern Tallgrass Prairie Habitat
Preservation Area in western Minnesota for
addition to the Northern Tallgrass Prairie
National Wildlife Refuge. Subject to
evaluation criteria in Minnesota Rules, part
6136.0900, priority must be given to acquiring
lands that are eligible for the native prairie
bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.
A list of proposed land acquisitions must be
provided as part of the required
accomplishment plan, and the acquisitions
must be consistent with the priorities in
Minnesota Prairie Conservation Plan.

(e) Cannon River Headwaters Habitat Complex - Phase VII

$1,436,000 the first year is to the
commissioner of natural resources for an
agreement with The Trust for Public Land to
acquire in fee and restore lands in the Cannon
River watershed for wildlife management
purposes under Minnesota Statutes, section
86A.05, subdivision 8. Subject to evaluation
criteria in Minnesota Rules, part 6136.0900,
priority must be given to acquiring lands that
are eligible for the native prairie bank under
Minnesota Statutes, section 84.96, or lands
adjacent to protected native prairie. A list of
proposed land acquisitions must be provided
as part of the required accomplishment plan.

(f) Accelerated Native Prairie Bank Protection - Phase VI

$2,481,000 the first year is to the
commissioner of natural resources to acquire
permanent conservation easements to
implement the strategies in Minnesota Prairie
Conservation Plan to protect and restore native
prairie. Of this amount, up to $140,000 is for
establishing monitoring and enforcement funds
as approved in the accomplishment plan and
subject to Minnesota Statutes, section
97A.056, subdivision 17. Subject to evaluation
criteria in Minnesota Rules, part 6136.0900,
priority must be given to acquiring lands that
are eligible for the native prairie bank under
Minnesota Statutes, section 84.96, or lands
adjacent to protected native prairie. A list of
permanent conservation easements must be
provided as part of the final report.

(g) Reinvest In Minnesota (RIM) Buffers for Wildlife and Water - Phase VII

$5,333,000 the first year is to the Board of
Water and Soil Resources to restore habitat
and acquire permanent conservation easements
under Minnesota Statutes, section 103F.515,
to protect, restore, and enhance habitat by
expanding the riparian-buffer program of the
clean water fund for at least equal wildlife
benefits from buffers on private land. Of this
amount, up to $858,000 is for establishing a
monitoring and enforcement fund as approved
in the accomplishment plan and subject to
Minnesota Statutes, section 97A.056,
subdivision 17. A list of permanent
conservation easements must be provided as
part of the final report.

(h) Prairie Chicken Habitat Partnership of the Southern Red River Valley - Phase III

$1,908,000 the first year is to the
commissioner of natural resources for an
agreement with Pheasants Forever in
cooperation with the Minnesota Prairie
Chicken Society to acquire land in fee and
restore and enhance lands in the southern Red
River valley for wildlife management purposes
under Minnesota Statutes, section 86A.05,
subdivision 8, or to be designated and
managed as waterfowl-production areas in
Minnesota in cooperation with the United
States Fish and Wildlife Service. Subject to
evaluation criteria in Minnesota Rules, part
6136.0900, priority must be given to acquiring
lands that are eligible for the native prairie
bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.
A list of proposed land acquisitions must be
provided as part of the required
accomplishment plan.

(i) Accelerated Prairie Restoration and Enhancement on DNR Lands - Phase IX

$3,950,000 the first year is to the
commissioner of natural resources to
accelerate restoration and enhancement of
prairies, grasslands, and savannas on wildlife
management areas, scientific and natural areas,
native prairie bank land, bluff prairies on state
forest land in southeastern Minnesota, and
United States Fish and Wildlife Service
waterfowl-production area and refuge lands.
A list of proposed land restorations and
enhancements must be provided as part of the
required accomplishment plan.

(j) Anoka Sandplain Habitat Restoration and Enhancement - Phase V

$1,130,000 the first year is to the
commissioner of natural resources for
agreements to acquire permanent conservation
easements and to restore and enhance wildlife
habitat on public lands in Anoka, Benton,
Isanti, Morrison, and Stearns Counties as
follows: $41,000 is to the Anoka Conservation
District, $231,000 is to the Isanti County Soil
and Water Conservation District, $345,000 is
to Great River Greening, $163,000 is to the
Stearns County Soil and Water Conservation
District, and $350,000 is to Minnesota Land
Trust. Up to $40,000 to Minnesota Land Trust
is for establishing monitoring and enforcement
funds as approved in the accomplishment plan
and subject to Minnesota Statutes, section
97A.056, subdivision 17. A list of proposed
permanent conservation easements,
restorations, and enhancements must be
provided as part of the required
accomplishment plan.

Subd. 3. Forests

17,324,000

-0-

(a) Carnelian Creek Conservation Corridor

$2,458,000 the first year is to the
commissioner of natural resources for an
agreement with Minnesota Land Trust to
acquire permanent conservation easements in
Washington County. Of this amount, up to
$30,000 is for establishing a monitoring and
enforcement fund as approved in the
accomplishment plan and subject to Minnesota
Statutes, section 97A.056, subdivision 17. A
list of proposed permanent conservation
easements must be provided as part of the
required accomplishment plan.

(b) Laurentian Forest - St. Louis County Habitat Project

$2,400,000 the first year is to the
commissioner of natural resources for
agreements with the Minnesota Deer Hunters
Association in cooperation with The
Conservation Fund and St. Louis County to
acquire land in fee to be transferred to St.
Louis County for wildlife habitat purposes.
The amount is for agreements as follows:
$2,292,000 to the Minnesota Deer Hunter
Association and $108,000 to The Conservation
Fund. A list of proposed land acquisitions
must be provided as part of the required
accomplishment plan.

(c) Southeast Minnesota Protection and Restoration - Phase V

$2,375,000 the first year is to the
commissioner of natural resources to acquire
land in fee for wildlife management purposes
under Minnesota Statutes, section 86A.05,
subdivision 8; to acquire land in fee for
scientific and natural areas under Minnesota
Statutes, section 86A.05, subdivision 5; to
acquire land in fee for state forest purposes
under Minnesota Statutes, section 86A.05,
subdivision 7; to acquire permanent
conservation easements; and to restore and
enhance prairie, grassland, forest, and savanna.
The amount is for agreements as follows:
$1,000,000 to The Nature Conservancy,
$675,000 to The Trust for Public Land, and
$700,000 to Minnesota Land Trust. Up to
$80,000 to Minnesota Land Trust is for
establishing a monitoring and enforcement
fund as approved in the accomplishment plan
and subject to Minnesota Statutes, section
97A.056, subdivision 17. No later than 180
days after the The Nature Conservancy's fiscal
year ends, The Nature Conservancy must
submit to the Lessard-Sams Outdoor Heritage
Council annual income statements and balance
sheets for income and expenses from land
acquired in fee with this appropriation and not
transferred to the state or a local governmental
unit. A list of proposed land acquisitions must
be provided as part of the required
accomplishment plan.

(d) Minnesota Forests for the Future - Phase V

$2,291,000 the first year is to the
commissioner of natural resources to acquire
easements for forest, wetland, and shoreline
habitat through working forest permanent
conservation easements under the Minnesota
forests for the future program pursuant to
Minnesota Statutes, section 84.66. A
conservation easement acquired with money
appropriated under this paragraph must
comply with Minnesota Statutes, section
97A.056, subdivision 13. The accomplishment
plan must include an easement monitoring and
enforcement plan. Of this amount, up to
$72,000 is for establishing a monitoring and
enforcement fund as approved in the
accomplishment plan and subject to Minnesota
Statutes, section 97A.056, subdivision 17. A
list of permanent conservation easements must
be provided as part of the final report.

(e) State Forest Acquisitions - Phase IV

$1,000,000 the first year is to the
commissioner of natural resources to acquire
lands in fee for wildlife habitat purposes in
the Richard J. Dorer Memorial Hardwood
State Forest under Minnesota Statutes, section
86A.05, subdivision 7. A list of proposed land
acquisitions must be provided as part of the
required accomplishment plan.

(f) Critical Shoreland Protection Program - Phase IV

$1,700,000 the first year is to the
commissioner of natural resources for an
agreement with Minnesota Land Trust to
acquire permanent conservation easements
along rivers and lakes in the northern forest
region. Of this amount, up to $120,000 is for
establishing a monitoring and enforcement
fund as approved in the accomplishment plan
and subject to Minnesota Statutes, section
97A.056, subdivision 17. A list of proposed
permanent conservation easements must be
provided as part of the required
accomplishment plan.

(g) Bushmen Lake

$4,600,000 the first year is to the
commissioner of natural resources for an
agreement with The Conservation Fund in
cooperation with the United States Forest
Service to acquire lands in fee adjacent to
Bushmen Lake in St. Louis County to be
managed for wildlife habitat purposes. A list
of proposed land acquisitions must be
provided as part of the required
accomplishment plan.

(h) Forest Pest Response

$500,000 the first year is to the commissioner
of agriculture to identify, prevent, and, in
consultation with the Forest Resources
Council, protect Minnesota forests by rapidly
and effectively responding to the threat or
presence of plant pests, including emerald ash
borer. The commissioner of agriculture may
transfer all or part of this appropriation to the
commissioner of natural resources and shall
award grants to local units of government or
other entities.

Subd. 4. Wetlands

31,744,000

-0-

(a) Accelerating Waterfowl-Production Area Acquisition - Phase IX

$5,500,000 the first year is to the
commissioner of natural resources for an
agreement with Pheasants Forever to acquire
land in fee and restore and enhance wetlands
and grasslands to be designated and managed
as waterfowl-production areas in Minnesota
in cooperation with the United States Fish and
Wildlife Service. A list of proposed land
acquisitions must be provided as part of the
required accomplishment plan.

(b) Shallow Lakes and Wetland Protection Program - Phase VI

$3,625,000 the first year is to the
commissioner of natural resources for an
agreement with Ducks Unlimited to acquire
land in fee and restore prairie lands, wetlands,
and land-buffering shallow lakes for wildlife
management purposes under Minnesota
Statutes, section 86A.05, subdivision 8. A list
of proposed acquisitions must be provided as
part of the required accomplishment plan.

(c) RIM Wetlands Partnership - Phase VIII

$15,398,000 the first year is to the Board of
Water and Soil Resources to acquire
permanent conservation easements and to
restore wetlands and native grassland habitat
under Minnesota Statutes, section 103F.515.
Of this amount, up to $306,000 is for
establishing a monitoring and enforcement
fund as approved in the accomplishment plan
and subject to Minnesota Statutes, section
97A.056, subdivision 17. A list of permanent
conservation easements must be provided as
part of the final report.

(d) Wild-Rice Shoreland Protection Program - Phase V

$750,000 the first year is to the Board of
Water and Soil Resources to acquire
permanent conservation easements on
wild-rice lake shoreland habitat for native
wild-rice bed protection. Of this amount, up
to $59,000 is for establishing a monitoring and
enforcement fund as approved in the
accomplishment plan and subject to Minnesota
Statutes, section 97A.056, subdivision 17. A
list of permanent conservation easements must
be provided as part of the final report by the
Board of Water and Soil Resources.

(e) Accelerated Shallow Lakes and Wetlands Enhancement - Phase IX

$1,755,000 the first year is to the
commissioner of natural resources to enhance
and restore shallow lakes and wetland habitat
statewide. A list of proposed land restorations
and enhancements must be provided as part
of the required accomplishment plan.

(f) Living Shallow Lakes and Wetland Initiative - Phase VI

$4,716,000 the first year is to the
commissioner of natural resources for an
agreement with Ducks Unlimited to restore
and enhance shallow lakes and wetlands on
public lands and wetlands under permanent
conservation easement for wildlife
management purposes. A list of proposed
shallow-lake enhancements and wetland
restorations must be provided as part of the
required accomplishment plan.

Subd. 5. Habitats

26,544,000

-0-

(a) Mississippi Headwaters Habitat Corridor Partnership - Phase III

$1,617,000 the first year is to the
commissioner of natural resources to acquire
lands in fee and restore wildlife habitat in the
Mississippi headwaters and for agreements as
follows: $60,000 to the Mississippi
Headwaters Board and $1,557,000 to The
Trust for Public Land. $779,000 the first year
is to the Board of Water and Soil Resources
to acquire lands in permanent conservation
easements and to restore wildlife habitat. Up
to $59,000 to the Board of Water and Soil
Resources is for establishing a monitoring and
enforcement fund as approved in the
accomplishment plan and subject to Minnesota
Statutes, section 97A.056, subdivision 17. A
list of proposed acquisitions must be included
as part of the required accomplishment plan.

(b) Fisheries Habitat Protection on Strategic North-Central Minnesota Lakes - Phase III

$1,716,000 the first year is to the
commissioner of natural resources to acquire
land in permanent conservation easements to
sustain healthy fish habitat on coldwater lakes
in Aitkin, Cass, Crow Wing, and Hubbard
Counties for agreements as follows: $113,000
to the Leech Lake Area Watershed Foundation
and $1,603,000 to Minnesota Land Trust. Up
to $120,000 to Minnesota Land Trust is for
establishing a monitoring and enforcement
fund as approved in the accomplishment plan
and subject to Minnesota Statutes, section
97A.056, subdivision 17. A list of permanent
conservation easements must be provided as
part of the required accomplishment plan.

(c) Goose Prairie

$600,000 the first year is to the commissioner
of natural resources for an agreement with the
Wild Rice Watershed District, in cooperation
with the Department of Natural Resources, to
enhance aquatic and upland habitat in and
adjacent to the Goose Prairie Marsh Wildlife
Management Area in Clay County. A list of
proposed land enhancements must be provided
as part of the required accomplishment plan.

(d) Minnesota Trout Unlimited Coldwater Fish Habitat Enhancement and Restoration - Phase IX

$2,403,000 the first year is to the
commissioner of natural resources for an
agreement with Minnesota Trout Unlimited
to restore or enhance habitat for trout and other
species in and along coldwater rivers, lakes,
and streams in Minnesota. A list of proposed
restorations and enhancements must be
provided as part of the required
accomplishment plan.

(e) DNR Stream Habitat - Phase II

$2,166,000 the first year is to the
commissioner of natural resources to restore
and enhance habitat in degraded streams and
critical aquatic-species habitat and to facilitate
fish passage. A list of proposed land
restorations and enhancements must be
provided as part of the required
accomplishment plan.

(f) St. Louis River Restoration Initiative - Phase IV

$3,392,000 the first year is to the
commissioner of natural resources to restore
aquatic habitats in the St. Louis River estuary.
Of this appropriation, up to $226,000 is for an
agreement with Minnesota Land Trust. A list
of proposed restorations must be provided as
part of the required accomplishment plan.

(g) Shell Rock River Watershed Habitat Restoration Program - Phase VI

$1,779,000 the first year is to the
commissioner of natural resources for an
agreement with the Shell Rock River
Watershed District to acquire land in fee and
restore and enhance aquatic habitat in the Shell
Rock River watershed. A list of proposed
acquisitions, restorations, and enhancements
must be provided as part of the required
accomplishment plan.

(h) Lake Wakanda Enhancement Project

$921,000 the first year is to the commissioner
of natural resources for an agreement with
Kandiyohi County to enhance aquatic habitat
in and adjacent to Lake Wakanda in Kandiyohi
County. A list of proposed land enhancements
must be provided as part of the required
accomplishment plan.

(i) Wolverton Creek Habitat Restoration

$1,877,000 the first year is to the
commissioner of natural resources for an
agreement with the Buffalo-Red River
Watershed District to acquire permanent
conservation easements and restore and
enhance aquatic and upland habitat associated
with Wolverton Creek in the Buffalo-Red
River watershed. A list of proposed
acquisitions, restorations, and enhancements
must be provided as part of the required
accomplishment plan.

(j) Conservation Partners Legacy Grant Program: Statewide and Metro Habitat - Phase IX

$9,294,000 the first year is to the
commissioner of natural resources for a
program to provide competitive matching
grants of up to $400,000 to local, regional,
state, and national organizations for enhancing,
restoring, or protecting forests, wetlands,
prairies, or habitat for fish, game, or wildlife
in Minnesota. Of this amount, up to
$2,660,000 is for grants in the seven-county
metropolitan area and cities with a population
of 50,000 or greater. Grants must not be made
for activities required to fulfill the duties of
owners of lands subject to conservation
easements. Grants must not be for projects
that have a total project cost exceeding
$575,000. Of the total appropriation, $634,000
may be spent for personnel costs and other
direct and necessary administrative costs.
Grantees may acquire land or interests in land.
Easements must be permanent. Grants may
not be used to establish easement stewardship
accounts. The program must require a match
of at least ten percent from nonstate sources
for all grants. The match may be cash or
in-kind resources. For grant applications of
$25,000 or less, the commissioner must
provide a separate, simplified application
process. Subject to Minnesota Statutes, the
commissioner must, when evaluating projects
of equal value, give priority to organizations
that have a history of receiving or a charter to
receive private contributions for local
conservation or habitat projects. If acquiring
land in fee or a conservation easement, priority
must be given to projects associated with or
within one mile of existing wildlife
management areas under Minnesota Statutes,
section 86A.05, subdivision 8; scientific and
natural areas under Minnesota Statutes,
sections 84.033 and 86A.05, subdivision 5; or
aquatic management areas under Minnesota
Statutes, sections 86A.05, subdivision 14, and
97C.02. All restoration or enhancement
projects must be on land permanently
protected by a permanent covenant ensuring
perpetual maintenance and protection of
restored and enhanced habitat, by a
conservation easement, or by public
ownership, or must be in public waters as
defined in Minnesota Statutes, section
103G.005, subdivision 15. Priority must be
given to restoration and enhancement projects
on public lands. Minnesota Statutes, section
97A.056, subdivision 13, applies to grants
awarded under this paragraph. This
appropriation is available until June 30, 2021.
No less than five percent of the amount of each
grant must be held back from reimbursement
until the grant recipient has completed a grant
accomplishment report by the deadline and in
the form prescribed by and satisfactory to the
Lessard-Sams Outdoor Heritage Council. The
commissioner must provide notice of the grant
program in the game and fish law summary
prepared under Minnesota Statutes, section
97A.051, subdivision 2.

Subd. 6. Administration

879,000

585,000

(a) Contract Management

$150,000 the first year is to the commissioner
of natural resources for contract management
duties assigned in this section. The
commissioner must provide an
accomplishment plan in the form specified by
the Lessard-Sams Outdoor Heritage Council
for expending this appropriation. The
accomplishment plan must include a copy of
the grant contract template and reimbursement
manual. No money may be expended before
the Lessard-Sams Outdoor Heritage Council
approves the accomplishment plan.

(b) Legislative Coordinating Commission

$571,000 the first year and $578,000 the
second year is to the Legislative Coordinating
Commission for Lessard-Sams Outdoor
Heritage Council administrative expenses and
for compensating and reimbursing expenses
of council members. This appropriation is
available until June 30, 2019. Minnesota
Statutes, section 16A.281, applies to this
appropriation.

(c) Technical Evaluation Panel

$150,000 the first year is to the commissioner
of natural resources for a technical evaluation
panel to conduct up to 20 restoration and
enhancement evaluations under Minnesota
Statutes, section 97A.056, subdivision 10.

(d) Legacy Web site

$8,000 the first year and $7,000 the second
year is to the Legislative Coordinating
Commission for the Web site required in
Minnesota Statutes, section 3.303, subdivision
10.

Subd. 7. Appropriation Availability

Money appropriated in this section may not
be spent on activities unless they are directly
related to and necessary for a specific
appropriation and are specified in the
accomplishment plan approved by the
Lessard-Sams Outdoor Heritage Council.
Money appropriated in this section must not
be spent on institutional overhead charges that
are not directly related to and necessary for a
specific appropriation. Unless otherwise
provided, the amounts in this section are
available until June 30, 2020. For acquiring
real property, the amounts in this section are
available until June 30, 2021, if a binding
agreement with a landowner or purchase
agreement is entered into by June 30, 2020,
and closed no later than June 30, 2021.
Appropriations for restoration or enhancement
are available until June 30, 2022, or five years
after acquisition, whichever is later, so that
initial restoration or enhancement work can
be completed. If a project receives at least 15
percent of its funding from federal funds, the
appropriation period may be extended to equal
the availability of federal funding to a
maximum of six years, provided the federal
funding was confirmed and included in the
first draft accomplishment plan. Money
appropriated for fee title acquisition of land
may be used to restore, enhance, and provide
for public use of the land acquired with the
appropriation. Public use facilities must have
no more than a minimal impact on habitat in
acquired lands.

Subd. 8. Payment Conditions and Capital Equipment Expenditures

All agreements referred to in this section must
be administered on a reimbursement basis
unless otherwise provided in this section.
Notwithstanding Minnesota Statutes, section
16A.41, expenditures directly related to each
appropriation's purpose made on or after July
1, 2017, or the date of accomplishment plan
approval, whichever is later, are eligible for
reimbursement unless otherwise provided in
this section. For the purposes of administering
appropriations and legislatively authorized
agreements paid out of the outdoor heritage
fund, an expense must be considered
reimbursable by the administering agency
when the recipient presents the agency with
an invoice or binding agreement with the
landowner and the recipient attests that the
goods have been received or the landowner
agreement is binding. Periodic reimbursement
must be made upon receiving documentation
that the items articulated in the
accomplishment plan approved by the
Lessard-Sams Outdoor Heritage Council have
been achieved, including partial achievements
as evidenced by progress reports approved by
the Lessard-Sams Outdoor Heritage Council.
Reasonable amounts may be advanced to
projects to accommodate cash-flow needs,
support future management of acquired lands,
or match a federal share. The advances must
be approved as part of the accomplishment
plan. Capital equipment expenditures for
specific items over $10,000 must be itemized
in and approved as part of the accomplishment
plan.

Subd. 9. Mapping

Each direct recipient of money appropriated
in this section, as well as each recipient of a
grant awarded pursuant to this section, must
provide geographic information to the
Lessard-Sams Outdoor Heritage Council for
mapping any lands acquired in fee with money
appropriated in this section and open to public
taking of fish and game. The commissioner
of natural resources must include the lands
acquired in fee with money appropriated in
this section on maps showing public recreation
opportunities. Maps must include information
on and acknowledgment of the outdoor
heritage fund, including a notation of any
restrictions.

Sec. 3.

Minnesota Statutes 2016, section 97A.056, subdivision 3, is amended to read:

Subd. 3.

Council recommendations.

(a) The council shall make recommendations to
the legislature on appropriations of money from the outdoor heritage fund that are consistent
with the Constitution and state law and that will achieve the outcomes of existing natural
resource plans, including, but not limited to, the Minnesota Statewide Conservation and
Preservation Plan, that directly relate to the restoration, protection, and enhancement of
wetlands, prairies, forests, and habitat for fish, game, and wildlife, and that prevent forest
fragmentation, encourage forest consolidation, and expand restored native prairie. In making
recommendations, the council shall consider a range of options that would best restore,
protect, and enhance wetlands, prairies, forests, and habitat for fish, game, and wildlife.
The council's recommendations shall be submitted no later than January 15 each year. The
council shall present its recommendations to the senate and house of representatives
committees with jurisdiction over the environment and natural resources budget by February
15 in odd-numbered years, and within the first four weeks of the legislative session in
even-numbered years. The council's budget recommendations to the legislature shall be
separate from the Department of Natural Resource's budget recommendations.

(b) To encourage and support local conservation efforts, the council shall establish a
conservation partners program. Local, regional, state, or national organizations may apply
for matching grants for restoration, protection, and enhancement of wetlands, prairies,
forests, and habitat for fish, game, and wildlife, prevention of forest fragmentation,
encouragement of forest consolidation, and expansion of restored native prairie.

(c) The council may work with the Clean Water Council to identify projects that are
consistent with both the purpose of the outdoor heritage fund and the purpose of the clean
water fund.

(d) The council may make recommendations to the Legislative-Citizen Commission on
Minnesota Resources on scientific research that will assist in restoring, protecting, and
enhancing wetlands, prairies, forests, and habitat for fish, game, and wildlife, preventing
forest fragmentation, encouraging forest consolidation, and expanding restored native prairie.

(e) Recommendations of the council, including approval of recommendations for the
outdoor heritage fund, require an affirmative vote of at least nine members of the council.

(f) The council may work with the Clean Water Council, the Legislative-Citizen
Commission on Minnesota Resources, the Board of Water and Soil Resources, soil and
water conservation districts, and experts from Minnesota State Colleges and Universities
and the University of Minnesota in developing the council's recommendations.

(g) The council shall develop and implement a process that ensures that citizens and
potential recipients of funds are included throughout the process, including the development
and finalization of the council's recommendations. The process must include a fair, equitable,
and thorough process for reviewing requests for funding and a clear and easily understood
process for ranking projects.

(h) The council shall use the regions of the state based upon the ecological sections and
subsections developed by the Department of Natural Resources and establish objectives for
each region and subregion to achieve the purposes of the fund outlined in the state
constitution.

(i) The council shall develop and submit to the Legislative Coordinating Commission
plans for the first ten years of funding, and a framework for 25 years of funding, consistent
with statutory and constitutional requirements. The council may use existing plans from
other legislative, state, and federal sources, as applicable.

(j) When making recommendations, the council must prioritize projects that restore and
enhance wetlands, prairies, forests, and habitat for fish, game, and wildlife over projects
that acquire land.

Sec. 4.

Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to
read:

Subd. 22.

Revenues.

(a) A recipient must disclose to the Lessard-Sams Outdoor Heritage
Council and the commissioner all revenues that are received by the recipient before the
availability of the appropriation ends and that are generated from activities on land acquired
in fee title or easement, restored, or enhanced with money from the outdoor heritage fund.
The revenues must be disclosed to the council and commissioner no later than 60 days after
the availability of the appropriation ends.

(b) For all revenues disclosed under paragraph (a), a recipient must:

(1) use the revenues to protect, restore, or enhance wetlands, prairies, forests, or habitat
for fish, game, or wildlife according to the appropriation purposes and the approved
accomplishment plan;

(2) use the revenues for other purposes as approved in the accomplishment plan by the
Lessard-Sams Outdoor Heritage Council; or

(3) transfer the revenues to the outdoor heritage fund no later than 60 days after the
availability of the appropriation ends, unless otherwise approved by the council.

(c) Paragraph (b), clause (3), does not apply to the state and its departments and agencies.

Sec. 5.

Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to
read:

Subd. 23.

Trails.

Forest lands acquired with money from the outdoor heritage fund must
be open to all recreational trail uses unless the land does not support the recreational trail
use or the constitutional requirements as determined by the commissioner of natural
resources. A recipient of an appropriation from the outdoor heritage fund establishing or
maintaining trails on forest lands acquired with that appropriation must provide equal
opportunities for motorized and nonmotorized users on lands acquired in accordance with
the Department of Natural Resources and county forest best management practices.

EFFECTIVE DATE.

This section is effective July 1, 2017, and applies to forest lands
acquired with an appropriation enacted on or after that date.

Sec. 6.

Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to
read:

Subd. 24.

Reserve requirement.

In any fiscal year, at least five percent of that year's
projected tax receipts determined by the most recent forecast for the outdoor heritage fund
must not be appropriated.

Sec. 7.

Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to
read:

Subd. 25.

Previous funding notification requirement.

Any state agency or organization
requesting a direct appropriation from the outdoor heritage fund must inform the
Lessard-Sams Outdoor Heritage Council and the house of representatives and senate
committees having jurisdiction over the outdoor heritage fund, at the time the request for
funding is made, whether the request is supplanting or is a substitution for any previous
funding that was not from a legacy fund and was used for the same purpose.

Sec. 8.

Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to
read:

Subd. 26.

Overhead costs.

Notwithstanding any law, policy, or guidance to the contrary,
a recipient of money from the outdoor heritage fund must not use the money to pay for rent,
lease payments, insurance, utilities, custodial services, building maintenance, or another
overhead cost unless the recipient has documented the amount that specific overhead costs
increased as a direct and necessary result of the recipient's responsibility to administer a
program, project, or activity paid for with money from the outdoor heritage fund. The amount
of money from the fund the recipient may use to pay for that specific overhead cost must
not exceed the amount the recipient documented as the increase in the cost.

Sec. 9.

Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to
read:

Subd. 27.

No net gain; counties.

(a) A county may file a no net gain of state lands
policy, adopted by the county board, with the commissioner of natural resources. The policy
must express the county's policy against the acquisition of additional land by the state within
the county.

(b) When the commissioner of natural resources acquires private land within a county
that has filed a no net gain of state lands policy under this subdivision, and the land was
acquired in fee with money appropriated from the outdoor heritage fund, the commissioner
of natural resources must sell to a private individual or entity an equal number of acres of
land within the county. The value of the land sold must be of at least substantially equal
value of the lands acquired. Notwithstanding section 94.10, subdivision 2, if lands being
offered for sale to comply with this subdivision remain unsold after a public sale offering,
the lands may be sold for less than the appraised value. Land sold under this paragraph must
not be sold for less than 75 percent of the appraised value.

(c) For the purposes of this subdivision, "substantially equal value" has the meaning
given under section 94.343, subdivision 3, paragraph (b).

EFFECTIVE DATE.

Paragraph (a) is effective the day following final enactment.

Sec. 10.

Laws 2012, chapter 264, article 1, section 2, subdivision 5, as amended by Laws
2015, First Special Session chapter 2, article 1, section 7, is amended to read:

Subd. 5. Habitats

-0-

28,620,000

(a) DNR Aquatic Habitat - Phase IV

$3,480,000 in the second year is to the
commissioner of natural resources to acquire
interests in land in fee or permanent
conservation easements for aquatic
management areas under Minnesota Statutes,
sections 86A.05, subdivision 14, and 97C.02,
and to restore and enhance aquatic habitat. A
list of proposed land acquisitions must be
provided as part of the required
accomplishment plan. The accomplishment
plan must include an easement stewardship
plan. Up to $25,000 is for establishing a
monitoring and enforcement fund as approved
in the accomplishment plan and subject to
Minnesota Statutes, section 97A.056,
subdivision 17. An annual financial report is
required for any monitoring and enforcement
fund established, including expenditures from
the fund and a description of annual
monitoring and enforcement activities.

(b) Metro Big Rivers Habitat - Phase III

$3,680,000 in the second year is to the
commissioner of natural resources for
agreements to acquire interests in land in fee
or permanent conservation easements and to
restore and enhance natural systems associated
with the Mississippi, Minnesota, and St. Croix
Rivers as follows: $1,000,000 to the
Minnesota Valley National Wildlife Refuge
Trust, Inc.; $375,000 to the Friends of the
Mississippi; $375,000 to Great River
Greening; $930,000 to The Minnesota Land
Trust; and $1,000,000 to The Trust for Public
Land. A list of proposed acquisitions,
restorations, and enhancements must be
provided as part of the required
accomplishment plan. The accomplishment
plan must include an easement stewardship
plan. Up to $51,000 is for establishing a
monitoring and enforcement fund as approved
in the accomplishment plan and subject to
Minnesota Statutes, section 97A.056,
subdivision 17. An annual financial report is
required for any monitoring and enforcement
fund established, including expenditures from
the fund and a description of annual
monitoring and enforcement activities.

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

$480,000 in the second year is to the
commissioner of natural resources for an
agreement with Dakota County to acquire
permanent conservation easements and restore
and enhance habitats along the Mississippi,
Cannon, and Vermillion Rivers. A list of
proposed acquisitions, restorations, and
enhancements must be provided as part of the
required accomplishment plan. The
accomplishment plan must include an
easement stewardship plan. Up to $20,000 is
for establishing a monitoring and enforcement
fund as approved in the accomplishment plan
and subject to Minnesota Statutes, section
97A.056, subdivision 17. An annual financial
report is required for any monitoring and
enforcement fund established, including
expenditures from the fund and a description
of annual monitoring and enforcement
activities.

(d) Lower St. Louis River Habitat Restoration

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

(e) Coldwater Fish Habitat Enhancement - Phase IV

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

(f) Grand Marais Creek Outlet Restoration

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

(g) Knife River Habitat Restoration

$380,000 in the second year is to the
commissioner of natural resources for an
agreement with the Lake Superior Steelhead
Association to restore trout habitat in the
Upper Knife River Watershed. A list of
proposed restorations must be provided as part
of the required accomplishment plan.
Notwithstanding rules of the commissioner of
natural resources, restorations conducted
pursuant to this paragraph may be
accomplished by excavation.

(h) Protect Aquatic Habitat from Invasive Carp

$7,500,000 in the second year is to the
commissioner of natural resources for design
construction, including acquisition, operation,
and evaluation of structural deterrents for
invasive carp to protect Minnesota's aquatic
habitat. Use of this money requires a
one-to-one match for projects on state
boundary waters. A match is not required for
design or feasibility studies. This appropriation
is available until June 30, 2019.

(i) Outdoor Heritage Conservation Partners Grant Program - Phase IV

$4,990,000 in the second year is to the
commissioner of natural resources for a
program to provide competitive, matching
grants of up to $400,000 to local, regional,
state, and national organizations for enhancing,
restoring, or protecting forests, wetlands,
prairies, and habitat for fish, game, or wildlife
in Minnesota. Grants shall not be made for
activities required to fulfill the duties of
owners of lands subject to conservation
easements. Grants shall not be made from
appropriations in this paragraph for projects
that have a total project cost exceeding
$575,000. $366,000 of this appropriation may
be spent for personnel costs and other direct
and necessary administrative costs. Grantees
may acquire land or interests in land.
Easements must be permanent. Land acquired
in fee must be open to hunting and fishing
during the open season unless otherwise
provided by state law. The program shall
require a match of at least ten percent from
nonstate sources for all grants. The match may
be cash or in-kind resources. For grant
applications of $25,000 or less, the
commissioner shall provide a separate,
simplified application process. Subject to
Minnesota Statutes, the commissioner of
natural resources shall, when evaluating
projects of equal value, give priority to
organizations that have a history of receiving
or charter to receive private contributions for
local conservation or habitat projects. If
acquiring land or a conservation easement,
priority shall be given to projects associated
with existing wildlife management areas under
Minnesota Statutes, section 86A.05,
subdivision 8; scientific and natural areas
under Minnesota Statutes, sections 84.033 and
86A.05, subdivision 5; and aquatic
management areas under Minnesota Statutes,
sections 86A.05, subdivision 14, and 97C.02.
All restoration or enhancement projects must
be on land permanently protected by a
conservation easement or public ownership or
in public waters as defined in Minnesota
Statutes, section 103G.005, subdivision 15.
Priority shall be given to restoration and
enhancement projects on public lands.
Minnesota Statutes, section 97A.056,
subdivision 13, applies to grants awarded
under this paragraph. This appropriation is
available until June 30, 2016. No less than five
percent of the amount of each grant must be
held back from reimbursement until the grant
recipient has completed a grant
accomplishment report by the deadline and in
the form prescribed by and satisfactory to the
Lessard-Sams Outdoor Heritage Council. The
commissioner shall provide notice of the grant
program in the game and fish law summaries
that are prepared under Minnesota Statutes,
section 97A.051, subdivision 2.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 11.

Laws 2015, First Special Session chapter 2, article 1, section 2, subdivision 2, as
amended by Laws 2016, chapter 172, article 1, section 5, is amended to read:

Subd. 2. Prairies

40,948,000

-0-

(a) DNR Wildlife Management Area and Scientific and Natural Area Acquisition - Phase VII

$4,570,000 in the first year is to the
commissioner of natural resources to acquire
land in fee for wildlife management purposes
under Minnesota Statutes, section 86A.05,
subdivision 8, and to acquire land in fee for
scientific and natural area purposes under
Minnesota Statutes, section 86A.05,
subdivision 5. Subject to evaluation criteria
in Minnesota Rules, part 6136.0900, priority
must be given to acquisition of lands that are
eligible for the native prairie bank under
Minnesota Statutes, section 84.96, or lands
adjacent to protected native prairie. A list of
proposed land and permanent conservation
easement acquisitions must be provided as
part of the required accomplishment plan.

(b) Accelerating Wildlife Management Area Acquisition - Phase VII

$7,452,000 in the first year is to the
commissioner of natural resources for an
agreement with Pheasants Forever to acquire
land in fee for wildlife management area
purposes under Minnesota Statutes, section
86A.05, subdivision 8. Subject to evaluation
criteria in Minnesota Rules, part 6136.0900,
priority must be given to acquisition of lands
that are eligible for the native prairie bank
under Minnesota Statutes, section 84.96, or
lands adjacent to protected native prairie. A
list of proposed land acquisitions must be
provided as part of the required
accomplishment plan.

(c) Minnesota Prairie Recovery Project - Phase VI

$4,032,000 in the first year is to the
commissioner of natural resources for an
agreement with The Nature Conservancy to
acquire native prairie, wetlands, and savanna
and restore and enhance grasslands, wetlands,
and savanna. Subject to evaluation criteria in
Minnesota Rules, part 6136.0900, priority
must be given to acquisition of lands that are
eligible for the native prairie bank under
Minnesota Statutes, section 84.96, or lands
adjacent to protected native prairie. Annual
income statements and balance sheets for
income and expenses from land acquired with
this appropriation must be submitted to the
Lessard-Sams Outdoor Heritage Council no
later than 180 days following the close of The
Nature Conservancy's fiscal year. A list of
proposed land acquisitions must be provided
as part of the required accomplishment plan
and must be consistent with the priorities
identified in the Minnesota Prairie
Conservation Plan.

(d) Northern Tallgrass Prairie National Wildlife Refuge Land Acquisition - Phase VI

$3,430,000 in the first year is to the
commissioner of natural resources for an
agreement with The Nature Conservancy in
cooperation with the United States Fish and
Wildlife Service to acquire land in fee or
permanent conservation easements within the
Northern Tallgrass Prairie Habitat Preservation
Area in western Minnesota for addition to the
Northern Tallgrass Prairie National Wildlife
Refuge. Subject to evaluation criteria in
Minnesota Rules, part 6136.0900, priority
must be given to acquisition of lands that are
eligible for the native prairie bank under
Minnesota Statutes, section 84.96, or lands
adjacent to protected native prairie. A list of
proposed land acquisitions must be provided
as part of the required accomplishment plan
and must be consistent with the priorities in
the Minnesota Prairie Conservation Plan.

(e) Accelerated Native Prairie Bank Protection - Phase IV

$3,740,000 in the first year is to the
commissioner of natural resources to
implement the Minnesota Prairie Conservation
Plan through the acquisition of permanent
conservation easements to protect native
prairie and grasslands. Up to $165,000 is for
establishing monitoring and enforcement funds
as approved in the accomplishment plan and
subject to Minnesota Statutes, section
97A.056, subdivision 17. Subject to evaluation
criteria in Minnesota Rules, part 6136.0900,
priority must be given to acquisition of lands
that are eligible for the native prairie bank
under Minnesota Statutes, section 84.96, or
lands adjacent to protected native prairie. A
list of permanent conservation easements must
be provided as part of the final report.

(f) Minnesota Buffers for Wildlife and Water - Phase V

$4,544,000 in the first year is to the Board of
Water and Soil Resources to acquire
permanent conservation easements to protect
and enhance habitat by expanding the clean
water fund riparian buffer program for at least
equal wildlife benefits from buffers on private
land. Up to $72,500 $728,000 is for
establishing a monitoring and enforcement
fund as approved in the accomplishment plan
and subject to Minnesota Statutes, section
97A.056, subdivision 17. A list of permanent
conservation easements must be provided as
part of the final report.

(g) Cannon River Headwaters Habitat Complex - Phase V

$1,380,000 in the first year is to the
commissioner of natural resources for an
agreement with The Trust for Public Land to
acquire and restore lands in the Cannon River
watershed for wildlife management purposes
under Minnesota Statutes, section 86A.05,
subdivision 8. Subject to evaluation criteria
in Minnesota Rules, part 6136.0900, priority
must be given to acquisition of lands that are
eligible for the native prairie bank under
Minnesota Statutes, section 84.96, or lands
adjacent to protected native prairie. A list of
proposed land acquisitions must be provided
as part of the required accomplishment plan.

(h) Prairie Chicken Habitat Partnership of the Southern Red River Valley

$1,800,000 in the first year is to the
commissioner of natural resources for an
agreement with Pheasants Forever in
cooperation with the Minnesota Prairie
Chicken Society to acquire and restore lands
in the southern Red River Valley for wildlife
management purposes under Minnesota
Statutes, section 86A.05, subdivision 8, or for
designation and management as waterfowl
production areas in Minnesota, in cooperation
with the United States Fish and Wildlife
Service. A list of proposed land acquisitions
must be provided as part of the required
accomplishment plan.

(i) Protecting and Restoring Minnesota's Important Bird Areas

$1,730,000 in the first year is to the
commissioner of natural resources for
agreements to acquire conservation easements
within important bird areas identified in the
Minnesota Prairie Conservation Plan, to be
used as follows: $408,000 is to Audubon
Minnesota and $1,322,000 is to Minnesota
Land Trust, of which up to $100,000 is for
establishing monitoring and enforcement funds
as approved in the accomplishment plan and
subject to Minnesota Statutes, section
97A.056, subdivision 17. A list of permanent
conservation easements must be provided as
part of the final report.

(j) Wild Rice River Corridor Habitat Restoration

$2,270,000 in the first year is to the
commissioner of natural resources for an
agreement with the Wild Rice Watershed
District to acquire land in fee and permanent
conservation easement and to `restore river
and related habitat in the Wild Rice River
corridor. A list of proposed acquisitions and
restorations must be provided as part of the
required accomplishment plan.

(k) Accelerated Prairie Restoration and Enhancement on DNR Lands - Phase VII

$4,880,000 in the first year is to the
commissioner of natural resources to
accelerate the restoration and enhancement of
prairie communities on wildlife management
areas, scientific and natural areas, state forest
land, and land under native prairie bank
easements. A list of proposed land restorations
and enhancements must be provided as part
of the required accomplishment plan.

(l) Enhanced Public Land Grasslands - Phase II

$1,120,000 in the first year is to the
commissioner of natural resources for an
agreement with Pheasants Forever to enhance
and restore habitat on public lands. A list of
proposed land restorations and enhancements
must be provided as part of the final report.

EFFECTIVE DATE.

This section is effective retroactively from July 1, 2015.

Sec. 12.

Laws 2016, chapter 172, article 1, section 2, subdivision 2, is amended to read:

Subd. 2. Prairies

-0-

31,000,000

(a) DNR Wildlife Management Area and Scientific and Natural Area Acquisition - Phase VIII

$3,250,000 the second year is to the
commissioner of natural resources to acquire
land in fee for wildlife management purposes
under Minnesota Statutes, section 86A.05,
subdivision 8, and to acquire land in fee for
scientific and natural area purposes under
Minnesota Statutes, section 86A.05,
subdivision 5. Subject to evaluation criteria
in Minnesota Rules, part 6136.0900, priority
must be given to acquisition of lands that are
eligible for the native prairie bank under
Minnesota Statutes, section 84.96, or lands
adjacent to protected native prairie. A list of
proposed land acquisitions must be provided
as part of the required accomplishment plan.

(b) Accelerating Wildlife Management Area Acquisition - Phase VIII

$5,229,000 the second year is to the
commissioner of natural resources for an
agreement with Pheasants Forever to acquire
in fee and restore lands for wildlife
management area purposes under Minnesota
Statutes, section 86A.05, subdivision 8.
Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given
to acquisition of lands that are eligible for the
native prairie bank under Minnesota Statutes,
section 84.96, or lands adjacent to protected
native prairie. A list of proposed land
acquisitions must be provided as part of the
required accomplishment plan.

(c) Martin County/Fox Lake Wildlife Management Area Acquisition

$1,000,000 the second year is to the
commissioner of natural resources for an
agreement with Fox Lake Conservation
League, Inc. to acquire land in fee and restore
strategic prairie grassland, wetland, and other
wildlife habitat for wildlife management area
purposes under Minnesota Statutes, section
86A.05, subdivision 8. A list of proposed
acquisitions must be provided as part of the
required accomplishment plan.

(d) Northern Tallgrass Prairie National Wildlife Refuge Land Acquisition - Phase VII

$2,754,000 the second year is to the
commissioner of natural resources for an
agreement with The Nature Conservancy in
cooperation with the United States Fish and
Wildlife Service to acquire land in fee or
permanent conservation easements and restore
lands within the Northern Tallgrass Prairie
Habitat Preservation Area in western
Minnesota for addition to the Northern
Tallgrass Prairie National Wildlife Refuge.
Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given
to acquisition of lands that are eligible for the
native prairie bank under Minnesota Statutes,
section 84.96, or lands adjacent to protected
native prairie. A list of proposed land
acquisitions must be provided as part of the
required accomplishment plan and must be
consistent with the priorities in the Minnesota
Prairie Conservation Plan.

(e) Cannon River Headwaters Habitat Complex - Phase VI

$583,000 the second year is to the
commissioner of natural resources for an
agreement with The Trust for Public Land to
acquire land in fee and restore lands in the
Cannon River watershed for wildlife
management purposes under Minnesota
Statutes, section 86A.05, subdivision 8.
Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given
to acquisition of lands that are eligible for the
native prairie bank under Minnesota Statutes,
section 84.96, or lands adjacent to protected
native prairie. A list of proposed land
acquisitions must be provided as part of the
required accomplishment plan.

(f) Accelerated Native Prairie Bank Protection - Phase V

$2,541,000 the second year is to the
commissioner of natural resources to
implement the Minnesota Prairie Conservation
Plan through the acquisition of permanent
conservation easements to protect and restore
native prairie. Of this amount, up to $120,000
is for establishing monitoring and enforcement
funds as approved in the accomplishment plan
and subject to Minnesota Statutes, section
97A.056, subdivision 17. Subject to evaluation
criteria in Minnesota Rules, part 6136.0900,
priority must be given to acquisition of lands
that are eligible for the native prairie bank
under Minnesota Statutes, section 84.96, or
lands adjacent to protected native prairie. A
list of permanent conservation easements must
be provided as part of the final report.

(g) Reinvest In Minnesota (RIM) Buffers for Wildlife and Water - Phase VI

$6,708,000 the second year is to the Board of
Water and Soil Resources to acquire
permanent conservation easements and restore
habitat under Minnesota Statutes, section
103F.515, to protect, restore, and enhance
habitat by expanding the clean water fund
riparian buffer program for at least equal
wildlife benefits from buffers on private land.
Of this amount, up to $130,000 $1,079,000 is
to establish a monitoring and enforcement
fund as approved in the accomplishment plan
and subject to Minnesota Statutes, section
97A.056, subdivision 17. A list of permanent
conservation easements must be provided as
part of the final report.

(h) Prairie Chicken Habitat Partnership of the Southern Red River Valley - Phase II

$2,269,000 the second year is to the
commissioner of natural resources for an
agreement with Pheasants Forever, in
cooperation with the Minnesota Prairie
Chicken Society, to acquire land in fee and
restore and enhance lands in the southern Red
River Valley for wildlife management
purposes under Minnesota Statutes, section
86A.05, subdivision 8, or for designation and
management as waterfowl production areas
in Minnesota, in cooperation with the United
States Fish and Wildlife Service. Subject to
evaluation criteria in Minnesota Rules, part
6136.0900, priority must be given to
acquisition of lands that are eligible for the
native prairie bank under Minnesota Statutes,
section 84.96, or lands adjacent to protected
native prairie. A list of proposed land
acquisitions must be provided as part of the
required accomplishment plan.

(i) Grassland Conservation Partnership - Phase II

$1,475,000 the second year is to the
commissioner of natural resources for an
agreement with The Conservation Fund, in
cooperation with Minnesota Land Trust, to
acquire permanent conservation easements
and restore high priority grassland, prairie,
and wetland habitats as follows: $64,000 to
The Conservation Fund; and $1,411,000 to
Minnesota Land Trust, of which up to
$100,000 is for establishing a monitoring and
enforcement fund, as approved in the
accomplishment plan and subject to Minnesota
Statutes, section 97A.056, subdivision 17.
Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given
to acquisition of lands that are eligible for the
native prairie bank under Minnesota Statutes,
section 84.96, or lands adjacent to protected
native prairie. A list of proposed acquisitions
must be provided as part of the required
accomplishment plan and must be consistent
with the priorities in the Minnesota Prairie
Conservation Plan.

(j) Accelerated Prairie Restoration and Enhancement on DNR Lands - Phase VIII

$3,983,000 the second year is to the
commissioner of natural resources to
accelerate restoration and enhancement of
prairies, grasslands, and savannas on wildlife
management areas, scientific and natural areas,
native prairie bank land, and bluff prairies on
state forest land in southeastern Minnesota. A
list of proposed land restorations and
enhancements must be provided as part of the
required accomplishment plan.

(k) Anoka Sandplain Habitat Restoration and Enhancement - Phase IV

$1,208,000 the second year is to the
commissioner of natural resources for
agreements to restore and enhance wildlife
habitat on public lands in Anoka, Isanti,
Morrison, Sherburne, and Todd Counties as
follows: $93,000 to Anoka Conservation
District; $25,000 to Isanti County Parks and
Recreation Department; $813,000 to Great
River Greening; and $277,000 to the National
Wild Turkey Federation. A list of proposed
land restorations and enhancements must be
provided as part of the required
accomplishment plan.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 13.

Laws 2016, chapter 172, article 1, section 2, subdivision 4, is amended to read:

Subd. 4. Wetlands

-0-

31,055,000

(a) Accelerating the Waterfowl Production Area Acquisition - Phase VIII

$5,650,000 the second year is to the
commissioner of natural resources for an
agreement with Pheasants Forever to acquire
in fee and restore and enhance wetlands and
grasslands to be designated and managed as
waterfowl production areas in Minnesota, in
cooperation with the United States Fish and
Wildlife Service. A list of proposed land
acquisitions must be provided as part of the
required accomplishment plan.

(b) Shallow Lake and Wetland Protection Program - Phase V

$5,801,000 the second year is to the
commissioner of natural resources for an
agreement with Ducks Unlimited to acquire
in fee and restore prairie lands, wetlands, and
land buffering shallow lakes for wildlife
management purposes under Minnesota
Statutes, section 86A.05, subdivision 8. A list
of proposed acquisitions must be provided as
part of the required accomplishment plan.

(c) RIM Wetlands Partnership - Phase VII

$13,808,000 the second year is to the Board
of Water and Soil Resources to acquire lands
in permanent conservation easements and to
restore wetlands and native grassland habitat
under Minnesota Statutes, section 103F.515.
Of this amount, up to $195,000 $410,000 is
to establish a monitoring and enforcement
fund as approved in the accomplishment plan
and subject to Minnesota Statutes, section
97A.056, subdivision 17. A list of permanent
conservation easements must be provided as
part of the final report.

(d) Wetland Habitat Protection Program - Phase II

$1,629,000 the second year is to the
commissioner of natural resources for an
agreement with Minnesota Land Trust to
acquire permanent conservation easements in
high-priority wetland habitat complexes in the
prairie and forest/prairie transition regions. Of
this amount, up to $180,000 is to establish a
monitoring and enforcement fund, as approved
in the accomplishment plan and subject to
Minnesota Statutes, section 97A.056,
subdivision 17. A list of proposed easement
acquisitions must be provided as part of the
final report.

(e) Accelerated Shallow Lakes and Wetlands Enhancement - Phase VIII

$2,167,000 the second year is to the
commissioner of natural resources to enhance
and restore shallow lakes and wetland habitat
statewide. A list of proposed land restorations
and enhancements must be provided as part
of the required accomplishment plan.

(f) Marsh Lake - Phase II

$2,000,000 the second year is to the
commissioner of natural resources to modify
the dam at Marsh Lake for improved habitat
management and to return the historic outlet
of the Pomme de Terre River to Lac Qui Parle.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 14. REPEALER.

Minnesota Statutes 2016, section 97A.056, subdivision 8, is repealed.

ARTICLE 2

CLEAN WATER FUND

Section 1. CLEAN WATER FUND 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 clean water
fund and are available for the fiscal years indicated for allowable activities under the
Minnesota Constitution, article XI, section 15. The figures "2018" and "2019" used in this
article mean that the appropriations listed under them are available for the fiscal year ending
June 30, 2018, or June 30, 2019, respectively. "The first year" is fiscal year 2018. "The
second year" is fiscal year 2019. "The biennium" is fiscal years 2018 and 2019. The
appropriations in this article are onetime.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
				2018		2019

Sec. 2. CLEAN WATER

Subdivision 1. Total Appropriation

$

101,254,000

$

111,114,000

Notwithstanding Minnesota Statutes, section
114D.50, subdivision 7, this appropriation is
from the clean water fund. The amounts that
may be spent for each purpose are specified
in the following sections.

Subd. 2. Availability of Appropriation

Money appropriated in this article may not be
spent on activities unless they are directly
related to and necessary for a specific
appropriation. Money appropriated in this
article must be spent in accordance with
Minnesota Management and Budget's
Guidance to Agencies on Legacy Fund
Expenditure. Notwithstanding Minnesota
Statutes, section 16A.28, and unless otherwise
specified in this article, fiscal year 2018
appropriations are available until June 30,
2019, and fiscal year 2019 appropriations are
available until June 30, 2020. If a project
receives federal funds, the period of the
appropriation is extended to equal the
availability of federal funding.

Subd. 3. Disability Access

Where appropriate, grant recipients of clean
water funds, in consultation with the Council
on Disability and other appropriate
governor-appointed disability councils, boards,
committees, and commissions, should make
progress toward providing greater access to
programs, print publications, and digital media
for people with disabilities related to the
programs the recipient funds using
appropriations made in this article.

Sec. 3. DEPARTMENT OF AGRICULTURE

$

7,482,000

$

7,484,000

(a) $350,000 the first year and $350,000 the
second year are to increase monitoring for
pesticides and pesticide degradates in surface
water and groundwater and to use data
collected to assess pesticide use practices.

(b) $2,085,000 the first year and $2,086,000
the second year are for monitoring and
evaluating trends in the concentration of
nitrate in groundwater in areas vulnerable to
groundwater degradation; promoting,
developing, and evaluating regional and
crop-specific nutrient best management
practices; assessing best management practice
adoption; education and technical support from
University of Minnesota Extension; grants to
support agricultural demonstration and
implementation activities; and other actions
to protect groundwater from degradation from
nitrate. This appropriation is available until
June 30, 2022.

(c) $75,000 the first year and $75,000 the
second year are for administering clean water
funds managed through the agriculture best
management practices loan program. Any
unencumbered balance at the end of the second
year shall be added to the corpus of the loan
fund.

(d) $1,125,000 the first year and $1,125,000
the second year are for technical assistance,
research, and demonstration projects on proper
implementation of best management practices
and more precise information on nonpoint
contributions to impaired waters and for grants
to support on-farm demonstration of
agricultural practices. This appropriation is
available until June 30, 2022.

(e) $662,000 the first year and $663,000 the
second year are for research to quantify and
reduce agricultural contributions to impaired
waters and for development and evaluation of
best management practices to protect and
restore water resources. This appropriation is
available until June 30, 2022.

(f) $50,000 the first year and $50,000 the
second year are for a research inventory
database containing water-related research
activities. Costs for information technology
development or support for this research
inventory database may be paid to the Office
of MN.IT Services. This appropriation is
available until June 30, 2022.

(g) $1,500,000 the first year and $1,500,000
the second year are to implement the
Minnesota agricultural water-quality
certification program statewide. Funds
appropriated in this paragraph are available
until June 30, 2021.

(h) $110,000 the first year and $110,000 the
second year are to provide funding for a
regional irrigation water quality specialist
through University of Minnesota Extension.

(i) $450,000 the first year and $450,000 the
second year are for grants to the Board of
Regents of the University of Minnesota to
fund the Forever Green Agriculture Initiative
and to protect the state's natural resources
while increasing the efficiency, profitability,
and productivity of Minnesota farmers by
incorporating perennial and winter-annual
crops into existing agricultural practices. This
appropriation is available until June 30, 2022.

(j) $1,000,000 the first year and $1,000,000
the second year are for pesticide testing of
private wells where nitrate is detected, as part
of the Township Testing Program. This
appropriation is available until June 30, 2022.

(k) $75,000 the first year and $75,000 the
second year are to evaluate market
opportunities and develop markets for crops
that can be profitable for farmers and
beneficial for water quality and soil health.

(l) A portion of the funds in this section may
be used for programs to train state and local
outreach staff in the intersection between
agricultural economics and agricultural
conservation.

Sec. 4. PUBLIC FACILITIES AUTHORITY

$

6,300,000

$

10,100,000

(a) $6,175,000 the first year and $9,975,000
the second year are for the point source
implementation grants program under
Minnesota Statutes, section 446A.073. This
appropriation is available until June 30, 2022.

(b) $125,000 the first year and $125,000 the
second year are for small community
wastewater treatment grants and loans under
Minnesota Statutes, section 446A.075. This
appropriation is available until June 30, 2022.

(c) If there are any uncommitted funds at the
end of each fiscal year under paragraph (a) or
(b), the Public Facilities Authority may
transfer the remaining funds to eligible
projects under any of the programs listed in
this section based on their priority rank on the
Pollution Control Agency's project priority
list.

Sec. 5. POLLUTION CONTROL AGENCY

$

25,286,000

$

25,514,000

(a) $8,275,000 the first year and $8,275,000
the second year are for completion of needed
statewide assessments of surface water quality
and trends according to Minnesota Statutes,
chapter 114D. Of this amount, $150,000 the
first year and $150,000 the second year are
for grants to the Red River Watershed
Management Board to enhance and expand
the existing water quality and watershed
monitoring river watch activities in the schools
in the Red River of the North. The Red River
Watershed Management Board shall provide
a report to the commissioner of the Pollution
Control Agency and the legislative committees
and divisions with jurisdiction over
environment and natural resources finance and
policy and the clean water fund by February
15, 2019, on the expenditure of these funds.

(b) $9,409,000 the first year and $9,638,000
the second year are to develop watershed
restoration and protection strategies (WRAPS),
which include total maximum daily load
(TMDL) studies and TMDL implementation
plans for waters listed on the United States
Environmental Protection Agency approved
impaired waters list in accordance with
Minnesota Statutes, chapter 114D. The agency
shall complete an average of ten percent of
the TMDLs each year over the biennium.

(c) $1,181,000 the first year and $1,182,000
the second year are for groundwater
assessment, including enhancing the ambient
monitoring network, modeling, and evaluating
trends, including the reassessment of
groundwater that was assessed ten to 15 years
ago and found to be contaminated.

(d) $750,000 the first year and $750,000 the
second year are for implementation of the St.
Louis River System Area of Concern
Remedial Action Plan. This appropriation
must be matched at a rate of 65 percent
nonstate money to 35 percent state money.

(e) $1,000,000 the first year and $1,000,000
the second year are for TMDL research and
database development.

(f) $900,000 the first year and $900,000 the
second year are for national pollutant
discharge elimination system wastewater and
storm water TMDL implementation efforts.

(g) $3,442,000 the first year and $3,441,000
the second year are for enhancing the
county-level delivery systems for subsurface
sewage treatment system (SSTS) activities
necessary to implement Minnesota Statutes,
sections 115.55 and 115.56, for protection of
groundwater, including base grants for all
counties with SSTS programs and competitive
grants to counties with specific plans to
significantly reduce water pollution by
reducing the number of systems that are an
imminent threat to public health or safety or
are otherwise failing. Counties that receive
base grants must report the number of sewage
noncompliant properties upgraded through
SSTS replacement, connection to a centralized
sewer system, or other means, including
property abandonment or buy-out. Counties
also must report the number of existing SSTS
compliance inspections conducted in areas
under county jurisdiction. These required
reports are to be part of established annual
reporting for SSTS programs. Counties that
conduct SSTS inventories or those with an
ordinance in place that requires an SSTS to
be inspected as a condition of transferring
property or as a condition of obtaining a local
permit must be given priority for competitive
grants under this paragraph. Of this amount,
$1,000,000 each year is available to counties
for grants to low-income landowners to
address systems that pose an imminent threat
to public health or safety or fail to protect
groundwater. A grant awarded under this
paragraph may not exceed $40,000 for the
biennium. A county receiving a grant under
this paragraph must submit a report to the
agency listing the projects funded, including
an account of the expenditures.

(h) $279,000 the first year and $278,000 the
second year are for accelerated implementation
of MS4 permit requirements including
additional technical assistance to
municipalities experiencing difficulties
understanding and implementing the basic
requirements of the municipal storm water
program.

(i) $50,000 the first year and $50,000 the
second year are to support activities of the
Clean Water Council according to Minnesota
Statutes, section 114D.30, subdivision 1.

(j) Notwithstanding Minnesota Statutes,
section 16A.28, the appropriations in this
section are available until June 30, 2022.

Sec. 6. DEPARTMENT OF NATURAL RESOURCES

$

8,671,000

$

8,871,000

(a) $1,900,000 the first year and $2,000,000
the second year are for stream flow
monitoring.

(b) $1,200,000 the first year and $1,300,000
the second year are for lake Index of
Biological Integrity (IBI) assessments.

(c) $135,000 the first year and $135,000 the
second year are for assessing mercury and
other contaminants of fish, including
monitoring to track the status of impaired
waters over time.

(d) $1,886,000 the first year and $1,886,000
the second year are for developing targeted,
science-based watershed restoration and
protection strategies.

(e) $1,700,000 the first year and $1,700,000
the second year are for water supply planning,
aquifer protection, and monitoring activities.

(f) $950,000 the first year and $950,000 the
second year are for technical assistance to
support local implementation of nonpoint
source restoration and protection activities.

(g) $675,000 the first year and $675,000 the
second year are for applied research and tools,
including watershed hydrologic modeling;
maintaining and updating spatial data for
watershed boundaries, streams, and water
bodies and integrating high-resolution digital
elevation data; and assessing effectiveness of
forestry best management practices for water
quality.

(h) $125,000 the first year and $125,000 the
second year are for developing county
geologic atlases.

(i) $100,000 the first year and $100,000 the
second year are for maintenance and updates
to buffer maps and for technical guidance on
buffer map interpretation to local units of
government for implementation of buffer
requirements. Maps must be provided to local
units of government and made available to
landowners on the Department of Natural
Resources' Web site.

Sec. 7. BOARD OF WATER AND SOIL RESOURCES

$

43,677,000

$

50,081,000

(a) $2,925,000 the first year and $7,525,000
the second year are for a pilot program to
provide performance-based grants to local
government units. The grants may be used to
implement projects that protect, enhance, and
restore surface water quality in lakes, rivers,
and streams; protect groundwater from
degradation; and protect drinking water
sources. Projects must be identified in a
comprehensive watershed plan developed
under the One Watershed, One Plan or
metropolitan surface water management
frameworks or groundwater plans. Grant
recipients must identify a nonstate match and
may use other legacy funds to supplement
projects funded under this paragraph.

(b) $11,923,000 the first year and $12,577,000
the second year are for grants to protect and
restore surface water and drinking water; to
keep water on the land; to protect, enhance,
and restore water quality in lakes, rivers, and
streams; and to protect groundwater and
drinking water, including feedlot water quality
and subsurface sewage treatment system
projects and stream bank, stream channel,
shoreline restoration, and ravine stabilization
projects. The projects must use practices
demonstrated to be effective, be of long-lasting
public benefit, include a match, and be
consistent with total maximum daily load
(TMDL) implementation plans, watershed
restoration and protection strategies (WRAPS),
or local water management plans or their
equivalents. A portion of these funds may be
used to seek administrative efficiencies
through shared resources by multiple local
governmental units.

(c) $3,325,000 the first year and $4,275,000
the second year are for accelerated
implementation, including local resource
protection and enhancement grants and
statewide program enhancements of
supplements for technical assistance, citizen
and community outreach, compliance, and
training and certification.

(d) $950,000 the first year and $950,000 the
second year are to provide state oversight and
accountability, evaluate results, provide
implementation tools, and measure the value
of conservation program implementation by
local governments, including submission to
the legislature by March 1 each
even-numbered year a biennial report prepared
by the board, in consultation with the
commissioners of natural resources, health,
agriculture, and the Pollution Control Agency,
detailing the recipients, the projects funded
under this section, and the amount of pollution
reduced.

(e) $3,400,000 the first year and $3,400,000
the second year are to provide assistance,
oversight, and grants for supporting local
governments in implementing and complying
with riparian protection and excessive soil loss
requirements.

(f) $6,000,000 the first year and $6,000,000
the second year are to restore or preserve
permanent conservation on riparian buffers
adjacent to lakes, rivers, streams, and
tributaries, to keep water on the land in order
to decrease sediment, pollutant, and nutrient
transport; reduce hydrologic impacts to surface
waters; and increase infiltration for
groundwater recharge. This appropriation may
be used for restoration of riparian buffers
permanently protected by easements purchased
with this appropriation or contracts to achieve
permanent protection for riparian buffers or
stream bank restorations when the riparian
buffers have been restored. Up to $1,920,000
is for deposit in a monitoring and enforcement
account.

(g) $84,000 the first year and $84,000 the
second year are for a technical evaluation
panel to conduct ten restoration evaluations
under Minnesota Statutes, section 114D.50,
subdivision 6.

(h) $1,995,000 the first year and $1,995,000
the second year are for assistance, oversight,
and grants to local governments to transition
local water management plans to a watershed
approach as provided for in Minnesota
Statutes, chapters 103B, 103C, 103D, and
114D.

(i) $750,000 the first year and $750,000 the
second year are for technical assistance and
grants for the conservation drainage program
in consultation with the Drainage Work Group,
coordinated under Minnesota Statutes, section
103B.101, subdivision 13, that includes
projects to improve multipurpose water
management under Minnesota Statutes, section
103E.015.

(j) $900,000 the first year and $1,100,000 the
second year are to purchase permanent
conservation easements to protect lands
adjacent to public waters with good water
quality but threatened with degradation. Up
to $60,000 is for deposit in a monitoring and
enforcement account.

(k) $425,000 the first year and $425,000 the
second year are for a program to
systematically collect data and produce
county, watershed, and statewide estimates of
soil erosion caused by water and wind along
with tracking adoption of conservation
measures, including cover crops, to address
erosion.

(l) $11,000,000 the first year and $11,000,000
the second year are for grants to soil and water
conservation districts to implement riparian
protection requirements under Minnesota
Statutes, section 103F.48.

(m) The board shall contract for delivery of
services with Conservation Corps Minnesota
for restoration, maintenance, and other
activities under this section for up to $500,000
the first year and up to $500,000 the second
year.

(n) The board may shift grant or cost-share
funds in this section and may adjust the
technical and administrative assistance portion
of the funds to leverage federal or other
nonstate funds or to address oversight
responsibilities or high-priority needs
identified in local water management plans.

(o) The board shall require grantees to specify
the outcomes that will be achieved by the
grants prior to any grant awards.

(p) The appropriations in this section are
available until June 30, 2022. Returned grant
funds are available until expended and shall
be regranted consistent with the purposes of
this section.

Sec. 8. DEPARTMENT OF HEALTH

$

5,115,000

$

4,857,000

(a) $1,100,000 the first year and $1,100,000
the second year are for addressing public
health concerns related to contaminants found
in Minnesota drinking water for which no
health-based drinking water standards exist,
including accelerating the development of
health risk limits and improving the capacity
of the department's laboratory to analyze
unregulated contaminants.

(b) $2,915,000 the first year and $2,657,000
the second year are for protecting drinking
water sources.

(c) $250,000 the first year and $250,000 the
second year are for cost-share assistance to
public and private well owners for up to 50
percent of the cost of sealing unused wells.

(d) $200,000 the first year and $200,000 the
second year are to develop and deliver
groundwater restoration and protection
strategies for use on a watershed scale for use
in local water planning efforts and to provide
resources to local governments for drinking
water source protection activities.

(e) $400,000 the first year and $400,000 the
second year are for studying the occurrence
and magnitude of contaminants in private
wells and developing guidance and outreach
to reduce risks to private-well owners.

(f) $100,000 the first year and $100,000 the
second year are for evaluating and addressing
the risks from viruses in water supplies.

(g) $150,000 the first year and $150,000 the
second year are to develop public health
policies and an action plan to address threats
to safe drinking water and to conduct an
analysis to determine the scope of the lead
problem in Minnesota's water and the cost to
eliminate lead exposure in drinking water.

(h) Unless otherwise specified, the
appropriations in this section are available
until June 30, 2021.

Sec. 9. METROPOLITAN COUNCIL

$

1,700,000

$

1,200,000

(a) $950,000 the first year and $950,000 the
second year are to implement projects that
address emerging drinking-water supply
threats, provide cost-effective regional
solutions, leverage interjurisdictional
coordination, support local implementation of
water supply reliability projects, and prevent
degradation of groundwater resources in the
metropolitan area. These projects will provide
to communities:

(1) potential solutions to leverage regional
water use through use of surface water, storm
water, wastewater, and groundwater;

(2) an analysis of infrastructure requirements
for different alternatives;

(3) development of planning level cost
estimates, including capital cost and operation
cost;

(4) identification of funding mechanisms and
an equitable cost-sharing structure for
regionally beneficial water supply
development projects; and

(5) development of subregional groundwater
models.

(b) $250,000 the first year and $250,000 the
second year are for the water demand
reduction grant program to encourage
implementation of water demand reduction
measures by municipalities in the metropolitan
area to ensure the reliability and protection of
drinking water supplies.

(c) $500,000 the first year is to provide grants
or loans for local inflow and infiltration
reduction programs in regions with high
susceptibility to groundwater contamination.
This appropriation is available until June 30,
2021.

Sec. 10. UNIVERSITY OF MINNESOTA

$

1,008,000

$

1,007,000

(a) $125,000 the first year and $125,000 the
second year are for developing county
geologic atlases. This appropriation is
available until June 30, 2022.

(b) $750,000 the first year and $750,000 the
second year are for a performance evaluation
and technology transfer program for storm
water best management practices to enhance
data and information management of storm
water best management practices; evaluate
best management performance and
effectiveness to support meeting total
maximum daily loads; develop standards and
incorporate state-of-the-art guidance using
minimal impact design standards as the model;
and implement a knowledge and technology
transfer system across local government,
industry, and regulatory sectors. This
appropriation is available until June 30, 2020.

(c) $133,000 the first year and $132,000 the
second year are to provide guidance
documents and tools evaluating the clean
water fund's return on investment to measure
impacts on water quality and human
well-being as well as assist in future funding
decisions.

Sec. 11. REVENUE

$

2,000,000

$

2,000,000

$2,000,000 the first year and $2,000,000 the
second year are for riparian protection aid
payments under Minnesota Statutes, section
477A.21.

Sec. 12. LEGISLATURE

$

15,000

$15,000 the first year is for the Legislative
Coordinating Commission for the Web site
required in Minnesota Statutes, section 3.303,
subdivision 10.

Sec. 13.

Minnesota Statutes 2016, section 114D.50, subdivision 4, is amended to read:

Subd. 4.

Expenditures; accountability.

(a) A project receiving funding from the clean
water fund must meet or exceed the constitutional requirements to protect, enhance, and
restore water quality in lakes, rivers, and streams and to protect groundwater and drinking
water from degradation. Priority may be given to projects that meet more than one of these
requirements. A project receiving funding from the clean water fund shall include measurable
outcomes, as defined in section 3.303, subdivision 10, and a plan for measuring and
evaluating the results. A project must be consistent with current science and incorporate
state-of-the-art technology.

(b) Money from the clean water fund shall be expended to balance the benefits across
all regions and residents of the state.

(c) A state agency or other recipient of a direct appropriation from the clean water fund
must compile and submit all information for proposed and funded projects or programs,
including the proposed measurable outcomes and all other items required under section
3.303, subdivision 10, to the Legislative Coordinating Commission as soon as practicable
or by January 15 of the applicable fiscal year, whichever comes first. The Legislative
Coordinating Commission must post submitted information on the Web site required under
section 3.303, subdivision 10, as soon as it becomes available. Information classified as not
public under section 13D.05, subdivision 3, paragraph (d), is not required to be placed on
the Web site.

(d) Grants funded by the clean water fund must be implemented according to section
16B.98 and must account for all expenditures. Proposals must specify a process for any
regranting envisioned. Priority for grant proposals must be given to proposals involving
grants that will be competitively awarded.

(e) Money from the clean water fund may only be spent on projects that benefit Minnesota
waters.

(f) When practicable, a direct recipient of an appropriation from the clean water fund
shall prominently display on the recipient's Web site home page the legacy logo required
under Laws 2009, chapter 172, article 5, section 10, as amended by Laws 2010, chapter
361, article 3, section 5, accompanied by the phrase "Click here for more information."
When a person clicks on the legacy logo image, the Web site must direct the person to a
Web page that includes both the contact information that a person may use to obtain
additional information, as well as a link to the Legislative Coordinating Commission Web
site required under section 3.303, subdivision 10.

(g) Future eligibility for money from the clean water fund is contingent upon a state
agency or other recipient satisfying all applicable requirements in this section, as well as
any additional requirements contained in applicable session law. If the Office of the
Legislative Auditor, in the course of an audit or investigation, publicly reports that a recipient
of money from the clean water fund has not complied with the laws, rules, or regulations
in this section or other laws applicable to the recipient, the recipient must be listed in an
annual report to the legislative committees with jurisdiction over the legacy funds. The list
must be publicly available. The legislative auditor shall remove a recipient from the list
upon determination that the recipient is in compliance. A recipient on the list is not eligible
for future funding from the clean water fund until the recipient demonstrates compliance
to the legislative auditor.

(h) Money from the clean water fund may be used to leverage federal funds through
execution of formal project partnership agreements with federal agencies consistent with
respective federal agency partnership agreement requirements.

(i) Any state agency or organization requesting a direct appropriation from the clean
water fund must inform the Clean Water Council and the house of representatives and senate
committees having jurisdiction over the clean water fund, at the time the request for funding
is made, whether the request is supplanting or is a substitution for any previous funding that
was not from a legacy fund and was used for the same purpose.

Sec. 14.

Minnesota Statutes 2016, section 114D.50, is amended by adding a subdivision
to read:

Subd. 7.

Reserve requirement.

In any fiscal year, at least five percent of that year's
projected tax receipts determined by the most recent forecast for the clean water fund must
not be appropriated.

Sec. 15.

Minnesota Statutes 2016, section 114D.50, is amended by adding a subdivision
to read:

Subd. 8.

Overhead costs.

Notwithstanding any law, policy, or guidance to the contrary,
a recipient of money from the clean water fund must not use the money to pay for rent, lease
payments, insurance, utilities, custodial services, building maintenance, or another overhead
cost unless the recipient has documented the amount that specific overhead costs increased
as a direct and necessary result of the recipient's responsibility to administer a program,
project, or activity paid for with money from the clean water fund. The amount of money
from the fund the recipient may use to pay for that specific overhead cost must not exceed
the amount the recipient documented as the increase in the cost.

Sec. 16.

[477A.21] RIPARIAN PROTECTION AID.

Subdivision 1.

Definitions.

For purposes of this section, the following terms have the
meanings given:

(1) "buffer protection map" has the meaning given under section 103F.48, subdivision
1; and

(2) "public watercourses" means public waters and public drainage systems subject to
riparian protection requirements under section 103F.48.

Subd. 2.

Certifications to commissioner.

(a) The Board of Water and Soil Resources
must certify to the commissioner of revenue, on or before July 1 each year, which counties
and watershed districts have affirmed their jurisdiction under section 103F.48 and the
proportion of centerline miles of public watercourses, and miles of public drainage system
ditches on the buffer protection map, within each county and each watershed district within
the county with affirmed jurisdiction.

(b) On or before July 1 each year, the commissioner of natural resources shall certify to
the commissioner of revenue the statewide and countywide number of centerline miles of
public watercourses and miles of public drainage system ditches on the buffer protection
map.

Subd. 3.

Distribution.

(a) A county that is certified under subdivision 2, or that portion
of a county containing a watershed district certified under subdivision 2, is eligible to receive
aid under this section to enforce and implement the riparian protection and water quality
practices under section 103F.48. Each county's preliminary aid amount is equal to the
proportion calculated under paragraph (b) multiplied by the appropriation received each
year by the commissioner for purposes of payments under this section.

(b) The commissioner must compute each county's proportion. A county's proportion is
equal to the ratio of the sum in clause (1) to the sum in clause (2):

(1) the sum of the total number of acres in the county classified as class 2a under section
273.13, subdivision 23, the countywide number of centerline miles of public watercourses
on the buffer protection map, and the countywide number of miles of public drainage system
ditches on the buffer protection map; and

(2) the sum of the statewide total number of acres classified as class 2a under section
273.13, subdivision 23, the statewide total number of centerline miles of public watercourses
on the buffer protection map, and the statewide total number of public drainage system
miles on the buffer protection map.

(c) Aid to a county must not be greater than $200,000 or less than $50,000. If the sum
of the preliminary aids payable to counties under paragraph (a) is greater or less than the
appropriation received by the commissioner, the commissioner of revenue must calculate
the percentage of adjustment necessary so that the total of the aid under paragraph (a) equals
the total amount received by the commissioner, subject to the minimum and maximum
amounts specified in this paragraph. The minimum and maximum amounts under this
paragraph must be adjusted by the ratio of the actual amount appropriated to $10,000,000.

(d) If only a portion of a county is certified as eligible to receive aid under subdivision
2, the aid otherwise payable to that county under this section must be multiplied by a fraction,
the numerator of which is the buffer protection map miles of the certified watershed districts
contained within the county and the denominator of which is the total buffer protection map
miles of the county.

(e) Any aid that would otherwise be paid to a county or portion of a county that is not
certified under subdivision 2 shall be paid to the Board of Water and Soil Resources for
enforcing and implementing the riparian protection and water quality practices under section
103F.48.

Subd. 4.

Payments.

The commissioner of revenue must compute the amount of riparian
protection aid payable to each eligible county and to the Board of Water and Soil Resources
under this section. On or before August 1 each year, the commissioner must certify the
amount to be paid to each county and the Board of Water and Soil Resources in the following
year, except that the payments for 2017 must be certified by July 15, 2017. The commissioner
must pay riparian protection aid to counties and to the Board of Water and Soil Resources
in the same manner and at the same time as aid payments under section 477A.015.

EFFECTIVE DATE.

This section is effective the day following final enactment and
applies to aids payable in 2017 and thereafter.

ARTICLE 3

PARKS AND TRAILS FUND

Section 1. PARKS AND TRAILS FUND 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 parks and
trails fund and are available for the fiscal years indicated for each purpose. The figures
"2018" and "2019" used in this article mean that the appropriations listed under them are
available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. "The first
year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" is fiscal
years 2018 and 2019. All appropriations in this article are onetime.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
				2018		2019

Sec. 2. PARKS AND TRAILS

Subdivision 1. Total Appropriation

$

41,988,000

$

47,775,000

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

Subd. 2. Availability of Appropriation

Money appropriated in this article may not be
spent on activities unless they are directly
related to and necessary for a specific
appropriation. Money appropriated in this
article must be spent in accordance with
Minnesota Management and Budget's
Guidance to Agencies on Legacy Fund
Expenditure. Notwithstanding Minnesota
Statutes, section 16A.28, and unless otherwise
specified in this article, fiscal year 2018
appropriations are available until June 30,
2020, and fiscal year 2019 appropriations are
available until June 30, 2021. If a project
receives federal funds, the time period of the
appropriation is extended to equal the
availability of federal funding.

Subd. 3. Disability Access

Where appropriate, grant recipients of parks
and trails funds, in consultation with the
Council on Disability and other appropriate
governor-appointed disability councils, boards,
committees, and commissions, should make
progress toward providing greater access to
programs, print publications, and digital media
for people with disabilities related to the
programs the recipient funds using
appropriations made in this article.

Sec. 3. DEPARTMENT OF NATURAL RESOURCES

$

25,397,000

$

28,884,000

(a) $16,584,000 the first year and $18,891,000
the second year are for state parks, recreation
areas, and trails to:

(1) connect people to the outdoors;

(2) acquire land and create opportunities;

(3) maintain existing holdings; and

(4) improve cooperation by coordinating with
partners to implement the 25-year long-range
parks and trails legacy plan.

(b) $8,292,000 the first year and $9,445,000
the second year are for grants for parks and
trails of regional significance outside the
seven-county metropolitan area under
Minnesota Statutes, section 85.535. The grants
must be based on the recommendations to the
commissioner from the Greater Minnesota
Regional Parks and Trails Commission
established under Minnesota Statutes, section
85.536. Grants funded under this paragraph
must support parks and trails of regional or
statewide significance that meet the applicable
definitions and criteria for regional parks and
trails contained in the Greater Minnesota
Regional Parks and Trails Strategic Plan
adopted by the Greater Minnesota Regional
Parks and Trails Commission on April 22,
2015. Grant recipients identified under this
paragraph must submit a grant application to
the commissioner of natural resources. Up to
2.5 percent of the appropriation may be used
by the commissioner for the actual cost of
issuing and monitoring the grants for the
commission. Of the amount appropriated,
$424,000 the first year and $399,000 the
second year are for the Greater Minnesota
Regional Parks and Trails Commission to
carry out its duties under Minnesota Statutes,
section 85.536, including the continued
development of a statewide system plan for
regional parks and trails outside the
seven-county metropolitan area.

(c) By January 15, 2018, the Greater
Minnesota Regional Parks and Trails
Commission shall submit a list of projects,
ranked in priority order, that contains the
commission's recommendations for funding
from the parks and trails fund for fiscal year
2019 to the chairs and ranking minority
members of the house of representatives and
senate committees and divisions with
jurisdiction over the environment and natural
resources and the parks and trails fund.

(d) By January 15, 2018, the Greater
Minnesota Regional Parks and Trails
Commission shall submit a report that contains
the commission's criteria for funding from the
parks and trails fund, including the criteria
used to determine if a park or trail is of
regional significance, to the chairs and ranking
minority members of the house of
representatives and senate committees and
divisions with jurisdiction over the
environment and natural resources and the
parks and trails fund.

(e) $521,000 the first year and $548,000 the
second year are for coordination and projects
between the department, the Metropolitan
Council, and the Greater Minnesota Regional
Parks and Trails Commission; enhanced
Web-based information for park and trail
users; and support of activities of the Parks
and Trails Legacy Advisory Committee.

(f) The commissioner shall contract for
services with Conservation Corps Minnesota
for restoration, maintenance, and other
activities under this section for at least
$1,000,000 the first year and $1,000,000 the
second year.

(g) The implementing agencies receiving
appropriations under this section shall give
consideration to contracting with Conservation
Corps Minnesota for restoration, maintenance,
and other activities.

Sec. 4. METROPOLITAN COUNCIL

$

16,584,000

$

18,891,000

(a) $16,584,000 the first year and $18,891,000
the second year are for distribution according
to Minnesota Statutes, section 85.53,
subdivision 3.

(b) Money appropriated under this section and
distributed to implementing agencies must be
used to fund the list of recommended projects
in the report submitted pursuant to Laws 2013,
chapter 137, article 3, section 4, paragraph (o).
Projects funded by the money appropriated
under this section must be substantially
consistent with the project descriptions and
dollar amounts in the report. Any funds
remaining after completion of the listed
projects may be spent by the implementing
agencies on projects to support parks and
trails.

(c) Grant agreements entered into by the
Metropolitan Council and recipients of money
appropriated under this section must ensure
that the funds are used to supplement and not
substitute for traditional sources of funding.

(d) The implementing agencies receiving
appropriations under this section shall give
consideration to contracting with Conservation
Corps Minnesota for restoration, maintenance,
and other activities.

Sec. 5. LEGISLATURE

$

7,000

$7,000 the first year is for the Legislative
Coordinating Commission for the Web site
required in Minnesota Statutes, section 3.303,
subdivision 10.

Sec. 6.

Minnesota Statutes 2016, section 85.53, is amended by adding a subdivision to
read:

Subd. 6.

Reserve requirement.

In any fiscal year, at least five percent of that year's
projected tax receipts determined by the most recent forecast for the parks and trails fund
must not be appropriated.

Sec. 7.

Minnesota Statutes 2016, section 85.53, is amended by adding a subdivision to
read:

Subd. 7.

Overhead costs.

Notwithstanding any law, policy, or guidance to the contrary,
a recipient of money from the parks and trails fund must not use the money to pay for rent,
lease payments, insurance, utilities, custodial services, building maintenance, or another
overhead cost unless the recipient has documented the amount that specific overhead costs
increased as a direct and necessary result of the recipient's responsibility to administer a
program, project, or activity paid for with money from the parks and trails fund. The amount
of money from the fund the recipient may use to pay for that specific overhead cost must
not exceed the amount the recipient documented as the increase in the cost.

Sec. 8. SAUK RIVER REGIONAL PARK GRANT EXTENSION.

The appropriation in Laws 2013, chapter 137, article 3, section 3, paragraph (c), clause
(9), from the parks and trails fund for trail enhancement, land acquisition, and other
improvements at Sauk River Regional Park is available until June 30, 2022.

EFFECTIVE DATE.

This section is effective retroactively from June 30, 2016.

Sec. 9. HYLAND-BUSH-ANDERSON LAKES PARK RESERVE GRANT
EXTENSION.

The appropriations for fiscal years 2014 and 2015 in Laws 2013, chapter 137, article 3,
section 4, paragraph (c), from the parks and trails fund for grants to the city of Bloomington
to reconstruct parking lots at the Hyland-Bush-Anderson Lakes Park Reserve are available
until June 30, 2018.

EFFECTIVE DATE.

This section is effective retroactively from June 30, 2016.

Sec. 10. ANOKA COUNTY AND DAKOTA COUNTY REALLOCATIONS.

Notwithstanding Laws 2013, chapter 137, article 3, section 4, paragraph (o), and Laws
2015, First Special Session chapter 2, article 3, section 4, paragraph (b):

(1) Anoka County may allocate $438,000 of its share of the distribution for fiscal year
2017 funds under Minnesota Statutes, section 85.53, subdivision 3, to Bunker Hills Regional
Park in accordance with the most recent priority rankings that Anoka County has submitted
to the Metropolitan Council; and

(2) Dakota County may allocate $180,000 of its share of the distribution under Minnesota
Statutes, section 85.53, subdivision 3, designated for the Vermillion River Regional
Greenway to the phase 2 improvement to Whitetail Woods Regional Park in Dakota County.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 4

ARTS AND CULTURAL HERITAGE FUND

Section 1. ARTS AND CULTURAL HERITAGE FUND APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the entities
and for the purposes specified in this article. The appropriations are from the arts and cultural
heritage fund and are available for the fiscal years indicated for allowable activities under
the Minnesota Constitution, article XI, section 15. The figures "2018" and "2019" used in
this article mean that the appropriations listed under the figure are available for the fiscal
year ending June 30, 2018, and June 30, 2019, respectively. "The first year" is fiscal year
2018. "The second year" is fiscal year 2019. "The biennium" is fiscal years 2018 and 2019.
All appropriations in this article are onetime.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
				2018		2019

Sec. 2. ARTS AND CULTURAL HERITAGE

Subdivision 1. Total Appropriation

$

57,331,000

$

66,033,000

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

Subd. 2. Availability of Appropriation

Money appropriated in this article may not be
spent on activities unless they are directly
related to and necessary for a specific
appropriation. Money appropriated in this
article must not be spent on institutional
overhead charges that are not directly related
to and necessary for a specific appropriation.
Money appropriated in this article must be
spent in accordance with the Minnesota
Management and Budget's Guidance to
Agencies on Legacy Fund Expenditures.
Notwithstanding Minnesota Statutes, section
16A.28, and unless otherwise specified in this
article, fiscal year 2018 appropriations are
available until June 30, 2019, and fiscal year
2019 appropriations are available until June
30, 2020. If a project receives federal funds,
the period of the appropriation is extended to
equal the availability of federal funding.

Subd. 3. Minnesota State Arts Board

25,855,000

32,112,000

(a) These amounts are appropriated to the
Minnesota State Arts Board for arts, arts
education, arts preservation, and arts access.
Grant agreements entered into by the
Minnesota State Arts Board and other
recipients of appropriations in this subdivision
must ensure that these funds are used to
supplement and not substitute for traditional
sources of funding. Each grant program
established in this appropriation must be
separately administered from other state
appropriations for program planning and
outcome measurements, but may take into
consideration other state resources awarded
in the selection of applicants and grant award
size.

(b) Arts and Arts Access Initiatives

$19,000,000 the first year and $25,342,000
the second year are to support Minnesota
artists and arts organizations in creating,
producing, and presenting high-quality arts
activities; to overcome barriers to accessing
high-quality arts activities; and to instill the
arts into the community and public life in this
state.

(c) Arts Education

$4,500,000 the first year and $4,500,000 the
second year are for high-quality,
age-appropriate arts education for Minnesotans
of all ages to develop knowledge, skills, and
understanding of the arts.

(d) Arts and Cultural Heritage

$1,500,000 the first year and $1,500,000 the
second year are for events and activities that
represent the diverse cultural arts traditions,
including folk and traditional artists and art
organizations, represented in this state.

(e) Grants

$30,000 the first year and $20,000 the second
year are for grants to an organization for
designing, consulting, creating, and
administering a statewide arts software
application to be used on electronic and mobile
electronic devices to locate and access artists,
arts organizations, and art education programs
throughout Minnesota. The grantee must work
in consultation with the Minnesota State Arts
Board, regional arts councils, private and
nonprofit arts organizations, and the regional
library system to develop criteria for content
to import to the software application and must
make the application free to download. A
portion of the funding may be used to pay the
ongoing costs associated with developing
content and updating the software or with
contracting to develop and update the software
and expand electronic content in fiscal years
2018 and 2019.

$250,000 each year is for a grant to the
Minnesota China Friendship Garden Society
for the Chinese garden in Phalen Park in St.
Paul to recognize the rich cultural heritage of
the Chinese and Hmong in Minnesota. Grant
recipients must provide a funding match of at
least 25 percent of the total eligible project
costs.

$375,000 each year is for a grant to the State
Agricultural Society and the city of Savage to
design and construct up to two statues of Dan
Patch to be placed at the Minnesota State
Fairgrounds and the city of Savage. Grant
recipients must provide a funding match of at
least 25 percent of the total eligible project
costs.

$125,000 each year is for a Fanka arts grant
program to one or more community
organizations that participate in statewide
Somali arts and cultural programs that provide
arts education, workshops, mentor programs,
or community presentations and community
engagement events.

$75,000 the first year is for a grant to the
Hmong Cultural Center for an interactive
Hmong Folk Art in Minnesota exhibit.

(f) Up to 4.5 percent of the funds appropriated
in paragraphs (b) to (d) may be used by the
board for administering grant programs,
delivering technical services, providing fiscal
oversight for the statewide system, and
ensuring accountability.

(g) Up to 30 percent of the remaining total
appropriation to each of the categories listed
in paragraphs (b) to (d) is for grants to the
regional arts councils. Notwithstanding any
other provision of law, regional arts council
grants or other arts council grants for touring
programs, projects, or exhibits must ensure
the programs, projects, or exhibits are able to
tour in their own region as well as all other
regions of the state.

(h) Any unencumbered balance remaining
under this subdivision the first year does not
cancel but is available the second year.

Subd. 4. Minnesota Historical Society

12,242,500

14,750,000

(a) These amounts are appropriated to the
governing board of the Minnesota Historical
Society to preserve and enhance access to
Minnesota's history and its cultural and
historical resources. Grant agreements entered
into by the Minnesota Historical Society and
other recipients of appropriations in this
subdivision must ensure that these funds are
used to supplement and not substitute for
traditional sources of funding. Funds directly
appropriated to the Minnesota Historical
Society must be used to supplement and not
substitute for traditional sources of funding.
Notwithstanding Minnesota Statutes, section
16A.28, for historic preservation projects that
improve historic structures, the amounts are
available until June 30, 2020. The Minnesota
Historical Society or grant recipients of the
Minnesota Historical Society using arts and
cultural heritage funds under this subdivision
must give consideration to Conservation Corps
Minnesota and Northern Bedrock Historic
Preservation Corps, or an organization
carrying out similar work, for projects with
the potential to need historic preservation
services.

(b) Historical Grants and Programs

(1) Statewide Historic and Cultural Grants

$4,500,000 the first year and $5,500,000 the
second year are for history programs and
projects operated or conducted by or through
local, county, regional, or other historical or
cultural organizations or for activities to
preserve significant historic and cultural
resources. Funds are to be distributed through
a competitive grant process. The Minnesota
Historical Society must administer these funds
using established grant mechanisms, with
assistance from the advisory committee
created under Laws 2009, chapter 172, article
4, section 2, subdivision 4, paragraph (b), item
(ii).

Of this amount, $300,000 the first year is for
a grant to the Fairmont Opera House for
restoration and renovation of historic Fairmont
Opera House.

(2) Statewide History Programs

$4,517,500 the first year and $6,125,000 the
second year are for programs and purposes
related to the historical and cultural heritage
of the state of Minnesota conducted by the
Minnesota Historical Society.

(3) History Partnerships

$2,000,000 the first year and $2,000,000 the
second year are for partnerships involving
multiple organizations, which may include the
Minnesota Historical Society, to preserve and
enhance access to Minnesota's history and
cultural heritage in all regions of the state.

(4) Statewide Survey of Historical and Archaeological Sites

$500,000 the first year and $500,000 the
second year are for a contract or contracts to
be awarded on a competitive basis to conduct
statewide surveys of Minnesota's sites of
historical, archaeological, and cultural
significance. Results of the surveys must be
published in a searchable form and available
to the public free of cost. The Minnesota
Historical Society, the Office of the State
Archaeologist, and the Indian Affairs Council
must each appoint a representative to an
oversight board to select contractors and direct
the conduct of the surveys. The oversight
board must consult with the Departments of
Transportation and Natural Resources.

(5) Digital Library

$375,000 the first year and $375,000 the
second year are for a digital library project to
preserve, digitize, and share Minnesota
images, documents, and historical materials.
The Minnesota Historical Society must
cooperate with the Minitex interlibrary loan
system and must jointly share this
appropriation for these purposes.

(6) Grants

$125,000 each year is for a grant to the board
of directors of the Carver County Historical
Society to restore the historic Andrew Peterson
farm in Waconia.

$125,000 each year is for a grant to the
Woodbury Barn Heritage Commission to
restore the Miller Barn and historical
programming at the Miller Barn in Woodbury.

$100,000 the first year is to restore the stained
glass in the historic Fort Snelling Memorial
Chapel in Bloomington. The historical society
may work in collaboration with the Fort
Snelling Memorial Chapel Foundation.

Subd. 5. Department of Education

2,750,000

2,500,000

These amounts are appropriated to the
commissioner of education for grants to the
12 Minnesota regional library systems to
provide educational opportunities in the arts,
history, literary arts, and cultural heritage of
Minnesota. These funds must be allocated
using the formulas in Minnesota Statutes,
section 134.355, subdivisions 3, 4, and 5, with
the remaining 25 percent to be distributed to
all qualifying systems in an amount
proportionate to the number of qualifying
system entities in each system. For purposes
of this subdivision, "qualifying system entity"
means a public library, a regional library
system, a regional library system headquarters,
a county, or an outreach service program.
These funds may be used to sponsor programs
provided by regional libraries or to provide
grants to local arts and cultural heritage
programs for programs in partnership with
regional libraries. These funds must be
distributed in ten equal payments per year.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered on or
before June 30, 2019, as grants or contracts in
this subdivision are available until June 30,
2020.

Subd. 6. Department of Administration

10,349,500

10,341,000

(a) These amounts are appropriated to the
commissioner of administration for grants to
the named organizations for the purposes
specified in this subdivision. The
commissioner of administration may use a
portion of this appropriation for costs that are
directly related to and necessary to the
administration of grants in this subdivision.

(b) Grant agreements entered into by the
commissioner and recipients of appropriations
under this subdivision must ensure that money
appropriated in this subdivision is used to
supplement and not substitute for traditional
sources of funding.

(c) Veterans Rest Camp

$278,000 the second year is for the Disabled
Veterans Rest Camp Association for a
welcome center for the veterans rest camp on
Big Marine Lake.

(d) Minnesota Public Radio

$1,650,000 each year is for Minnesota Public
Radio to create programming and expand news
service on Minnesota's cultural heritage and
history.

(e) Association of Minnesota Public Educational Radio Stations

$1,600,000 each year is to the Association of
Minnesota Public Educational Radio Stations
for production and acquisition grants in
accordance with Minnesota Statutes, section
129D.19.

(f) Public Television

$4,000,000 the first year and $4,000,000 the
second year are to the Minnesota Public
Television Association for production and
acquisition grants according to Minnesota
Statutes, section 129D.18.

Of this amount, $650,000 the first year is for
Twin Cities Public Television to produce the
Vietnam: Minnesota Remembers project. Any
production costs associated with the project
incurred on or after February 1, 2017, are
eligible for reimbursement under this section.

(g) Wilderness Inquiry

$300,000 each year is to Wilderness Inquiry
to preserve Minnesota's outdoor history,
culture, and heritage by connecting Minnesota
youth to natural resources.

(h) Como Park Zoo

$1,400,000 the first year and $1,500,000 the
second year are for the Como Park Zoo for
program development that features education
programs and habitat enhancement, special
exhibits, music appreciation programs, and
historical garden access and preservation.

(i) Science Museum of Minnesota

$600,000 each year is to the Science Museum
of Minnesota for arts, arts education, and arts
access and to preserve Minnesota's history and
cultural heritage, including student and teacher
outreach, statewide educational initiatives, and
community-based exhibits that preserve
Minnesota's history and cultural heritage.

(j) Lake Superior Center Authority

$150,000 each year is to the Lake Superior
Center Authority to develop, prepare, and
construct an exhibit on river systems.

(k) Green Giant Museum

$300,000 the first year is to the city of Blue
Earth to predesign, design, construct, furnish,
and equip the Green Giant Museum to
preserve the culture and history of Minnesota.

(l) Lake Superior Zoo

$75,000 each year is to the Lake Superior Zoo
to develop educational exhibits and programs.

(m) Minnesota State Band

$25,000 each year is to the Minnesota State
Band to promote and increase public
performances across Minnesota.

(n) Rice County Veterans Memorial

$30,000 the first year is to Rice County to
complete the Rice County Veterans Memorial
in Faribault.

(o) Minnesota Square Park Pavilion

$112,000 the first year and $113,000 the
second year are to the city of St. Peter to
reconstruct the Minnesota Square Park
pavilion in St. Peter.

(p) Waseca County Veterans Memorial

$50,000 the second year is to Waseca County
to complete the Waseca County Veterans
Memorial.

(q) Office of State Archaeologist

$107,500 the first year is for the Office of the
State Archaeologist non-Indian remains
analysis and reburial project.

Subd. 7. Minnesota Zoo

1,775,000

1,850,000

These amounts are appropriated to the
Minnesota Zoological Board for programs and
development of the Minnesota Zoological
Garden and to provide access and education
related to programs on the cultural heritage of
Minnesota.

Subd. 8. Minnesota Humanities Center

2,575,000

2,705,000

(a) These amounts are appropriated to the
Board of Directors of the Minnesota
Humanities Center for the purposes specified
in this subdivision. The Minnesota Humanities
Center may use up to 4.5 percent of the
following grants to cover the cost of
administering, planning, evaluating, and
reporting these grants. The Minnesota
Humanities Center must develop a written
plan to issue the grants in this subdivision and
must submit the plan for review and approval
by the Department of Administration. The
written plan must require the Minnesota
Humanities Center to create and adhere to
grant policies that are similar to those
established according to Minnesota Statutes,
section 16B.97, subdivision 4, paragraph (a),
clause (1).

No grants awarded in this subdivision may be
used for travel outside the state of Minnesota.
The grant agreement must specify the
repercussions for failing to comply with the
grant agreement.

(b) Programs and Purposes

$1,125,000 each year is for programs and
purposes of the Minnesota Humanities Center.
Of this amount, $125,000 each year may be
used for the Why Treaties Matter exhibit.

The Minnesota Humanities Center may
consider museums and organizations
celebrating the identities of Minnesotans for
grants from these funds.

Of this amount, $55,000 the first year is for a
grant to the Governor's Council on
Developmental Disabilities to enhance and
enlarge the historical digital archives
collection "With An Eye to the Past" for oral
history interviews and document collection,
production, consultation, transcription, closed
captioning, Web site administration, and
evaluation.

(c) Community Identity and Heritage Grant Program

$100,000 the first year and $250,000 the
second year are for a competitive grants
program to provide grants to preserve and
promote the cultural heritage of Minnesota.

Of this amount, up to $150,000 the second
year is for a grant to the city of St. Paul or
Ramsey County to develop and install activity
facilities in parks for Tawkaw Courts that are
reflective of the current demographics in
Ramsey County. This grant is available if the
recipient provides at least a 25 percent match
for funding.

The Minnesota Humanities Center must
operate a competitive grants program to
provide grants to programs, including but not
limited to music, film, television, radio,
recreation, and design and use of public spaces
that preserve and honor the cultural heritage
of Minnesota or that provide education and
student outreach on cultural diversity or to
programs that empower communities to build
their identity and culture. Grants made under
this paragraph must not be used for travel costs
inside or outside the state.

(d) Children's Museum Grants

$950,000 the first year and $1,030,000 the
second year are for arts and cultural heritage
grants to children's museums for arts and
cultural exhibits and related educational
outreach programs.

Of this amount, $500,000 each year is for the
Minnesota Children's Museum for interactive
exhibits and outreach programs on arts and
cultural heritage, including the Minnesota
Children's Museum in Rochester; $150,000
each year is for the Duluth Children's Museum
for interactive exhibits and outreach programs
on arts and cultural heritage; $150,000 each
year is for the Grand Rapids Children's
Museum for interactive exhibits and outreach
programs on arts and cultural heritage;
$150,000 each year is for the Southern
Minnesota Children's Museum for the Mni
Wiconi and other arts and cultural exhibits;
and $80,000 the second year is for the Wheel
and Cog Children's Museum of Hutchinson
for interactive exhibits and outreach programs
on arts and cultural heritage.

(e) Civics Programs

$200,000 each year is for grants to the
Minnesota Civic Education Coalition:
Minnesota Civic Youth, the Learning Law and
Democracy Foundation, and YMCA Youth in
Government to conduct civics education
programs for the civic and cultural
development of Minnesota youth. Civics
education is the study of constitutional
principles and the democratic foundation of
our national, state, and local institutions and
the study of political processes and structures
of government, grounded in the understanding
of constitutional government under the rule
of law.

(f) Somali Museum of Minnesota

$100,000 each year is for a grant to the Somali
Museum of Minnesota for the Heritage Arts
and Cultural Vitality programs for classes,
exhibits, presentations, and outreach about the
Somali community and heritage in Minnesota.

(g) Rondo Commemorative Plaza

$100,000 the first year is for a grant to Rondo
Avenue, Inc. for the Rondo Commemorative
Plaza to celebrate the historic Rondo
neighborhood.

Subd. 9. Indian Affairs Council

1,275,000

1,275,000

(a) $900,000 each year is for the Indian Affairs
Council to provide grants to preserve Dakota
and Ojibwe Indian language and to foster
education programs and immersion programs
in Dakota and Ojibwe language.

(b) $125,000 each year is to the Indian Affairs
Council for a grant to the Niiganne Ojibwe
Immersion School.

(c) $250,000 each year is to the Indian Affairs
Council for a grant to the Wicoie
Nandagikendan Urban Immersion Project and
potentially Baby's Space and other partners at
the Neighborhood Early Learning Center.
Wicoie Nandagikendan Urban Immersion
Project shall work in coordination with the
Indian Affairs Council to develop capacity
and implement a language immersion program
with Baby's Space and other partners.

Subd. 10. Department of Agriculture

500,000

500,000

These amounts are appropriated to the
commissioner of agriculture for grants to
county agricultural societies to enhance arts
access and education and to preserve and
promote Minnesota's history and cultural
heritage as embodied in its county fairs. The
grants are in addition to the aid distribution to
county agricultural societies under Minnesota
Statutes, section 38.02. The commissioner of
agriculture shall develop grant-making criteria
and guidance for expending funds under this
subdivision. The commissioner shall seek
input from all interested parties.

Of this amount, $200,000 each year is
distributed in equal amounts to each of the 95
county fairs to enhance arts access and
education and to preserve and promote
Minnesota's history and cultural heritage.

Of this amount, $200,000 each year is
distributed as competitive grants for
developing or enhancing facilities that provide
access to arts, arts education, and agriculture
or historical and cultural heritage programs.

Of this amount, $100,000 each year is
distributed as competitive grants for specific
projects and events that provide access to the
arts or the state's agricultural, historical, and
cultural heritage.

Subd. 11. Legislative Coordinating Commission

9,000

-0-

This amount is for the Legislative
Coordinating Commission to maintain the
Web site required under Minnesota Statutes,
section 3.303, subdivision 10.

Sec. 3.

Minnesota Statutes 2016, section 129D.17, subdivision 4, is amended to read:

Subd. 4.

Minnesota State Arts Board allocation.

At least 47 percent of the money
deposited in the total appropriations from the arts and cultural heritage fund in a fiscal
biennium must be for grants and services awarded through the Minnesota State Arts Board,
or regional arts councils subject to appropriation.

Sec. 4.

Minnesota Statutes 2016, section 129D.17, is amended by adding a subdivision to
read:

Subd. 5.

Reserve requirement.

In any fiscal year, at least five percent of that year's
projected tax receipts determined by the most recent forecast for the arts and cultural heritage
fund must not be appropriated.

Sec. 5.

Minnesota Statutes 2016, section 129D.17, is amended by adding a subdivision to
read:

Subd. 6.

Overhead costs.

Notwithstanding any law, policy, or guidance to the contrary,
a recipient of money from the arts and cultural heritage fund must not use the money to pay
for rent, lease payments, insurance, utilities, custodial services, building maintenance, or
another overhead cost unless the recipient has documented the amount that specific overhead
costs increased as a direct and necessary result of the recipient's responsibility to administer
a program, project, or activity paid for with money from the arts and cultural heritage fund.
The amount of money from the fund the recipient may use to pay for that specific overhead
cost must not exceed the amount the recipient documented as the increase in the cost.

Sec. 6. ARTS AND CULTURAL HERITAGE FUND RECIPIENT DEDICATED
DISPARITIES ASSISTANCE.

(a) Entities receiving $1,000,000 or more in arts and cultural heritage funds for
programming or projects in this article must provide a portion of funding, through their own
operating budget or using the percentage of arts and cultural heritage funds necessary, to
create measurable goals and outcomes to increase access to programs and reduce disparities
for access to programs funded by the arts and cultural heritage fund. Each entity required
to comply with this section shall designate an employee to be responsible for the requirements
of this section. Measurable goals may include:

(1) providing outreach or programming in different languages;

(2) improving access for individuals with disabilities and improving compliance with
the Americans with Disabilities Act;

(3) improving access to programs in different regions of the state or assisting community
members in regions of the state that are traditionally underserved in accessing programs;

(4) increasing access to individuals of different ages or from different races or cultures
than have traditionally accessed the programs provided by the entity receiving funds; and

(5) improving access to low-income individuals and families, including providing free
and reduced-cost programming to those individuals and families and to schools with a high
percentage of students who receive free or reduced-price lunch.

(b) The funding must be used to create measurable goals and outcomes, to measure those
goals, and to provide a written report to the house of representatives and senate committees
with jurisdiction over the arts and cultural heritage fund by December 15, 2018.

ARTICLE 5

GENERAL PROVISIONS; ALL LEGACY FUNDS

Section 1.

Minnesota Statutes 2016, section 16A.127, subdivision 8, is amended to read:

Subd. 8.

Exemptions.

(a) No statewide or agency indirect cost liability shall be accrued
to any program, appropriation, or account that is specifically exempted from the liability in
federal or state law, or if the commissioner determines the funds to be held in trust, or to
be a pass-through, workshop, or seminar account. Accounts receiving proceeds from bond
issues and general fund accounts are also exempt from this section.

(b) Except for the costs of the legislative auditor to conduct financial audits of federal
funds, this section does not apply to the Board of Trustees of the Minnesota State Colleges
and Universities. Receipts attributable to financial audits conducted by the legislative auditor
of federal funds administered by the board shall be deposited in the general fund.

(c) The commissioner must not use this section to obtain money appropriated from the
outdoor heritage, clean water, parks and trails, or arts and cultural heritage fund to pay for
statewide or agency indirect costs.

APPENDIX

Repealed Minnesota Statutes: H0707-3

97A.056 OUTDOOR HERITAGE FUND; LESSARD-SAMS OUTDOOR HERITAGE COUNCIL.

Subd. 8.

Revenues.

(a) When a parcel of land that was previously purchased with money from the outdoor heritage fund is transferred to the state, the owner of the land shall disclose to the council and commissioner of natural resources:

(1) all revenues generated from activities on the land from the time the land was purchased with money from the outdoor heritage fund until the land was transferred to the state;

(2) all holding costs associated with managing the land between the time of purchase with money from the outdoor heritage fund and the time the land was transferred to the state; and

(3) the total net revenues as determined by subtracting the costs described in clause (2) from the revenues described in clause (1).

(b) The owner of the land shall submit the total net revenues determined under paragraph (a), clause (3), to the state no later than 60 days after the land is transferred to the state.