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HF 976

4th Engrossment - 88th Legislature (2013 - 2014) Posted on 09/10/2013 02:30pm

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

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Engrossments

Introduction Pdf Posted on 02/28/2013
1st Engrossment Pdf Posted on 04/11/2013
2nd Engrossment Pdf Posted on 04/15/2013
3rd Engrossment Pdf Posted on 04/19/2013
4th Engrossment Pdf Posted on 05/19/2013

Unofficial Engrossments

1st Unofficial Engrossment Pdf Posted on 04/22/2013

Conference Committee Reports

LS88-CCR-HF0976 Pdf Posted on 05/18/2013

Current Version - 4th Engrossment

1.1A bill for an act
1.2relating to state government; appropriating money for environment, natural
1.3resources, and agriculture; modifying and providing for disposition of certain
1.4revenue; modifying pesticide control; providing certain fee exemptions;
1.5establishing agricultural water certification program; modifying Minnesota
1.6Noxious Weed Law; providing for biobased and biofuel products; modifying
1.7certain bond requirements; modifying animal waste technician provisions;
1.8making technical changes; modifying certain permit requirements; providing for
1.9federal law compliance; providing for certain easements; modifying all-terrain
1.10vehicle operating provisions; establishing pollinator habitat program; modifying
1.11snowmobile registration provisions; modifying state trails; modifying State
1.12Timber Act; modifying certain park boundaries and expenditures; modifying
1.13reporting requirements; modifying Petroleum Tank Release Cleanup Act;
1.14providing for silica sand mining model standards and technical assistance;
1.15providing for wastewater laboratory certification; providing for product
1.16stewardship program; providing for discontinuance of Hennepin County Soil and
1.17Water Conservation District; authorizing recreation of Hall's Island; providing
1.18for certain interim ordinance extension or renewal; repealing certain pollution
1.19control rules; modifying certain environmental review; modifying Water Law;
1.20modifying public utilities provisions; providing certain criteria for wastewater
1.21treatment systems; providing for sanitary districts; requiring studies and reports;
1.22requiring rulemaking;amending Minnesota Statutes 2012, sections 13.6435, by
1.23adding a subdivision; 13.7411, subdivision 4; 17.03, subdivision 3; 17.1015;
1.2417.118, subdivision 2; 18.77, subdivisions 3, 4, 10, 12; 18.78, subdivision 3;
1.2518.79, subdivisions 6, 13; 18.82, subdivision 1; 18.91, subdivisions 1, 2; 18B.01,
1.26by adding a subdivision; 18B.07, subdivisions 4, 5, 7; 18B.26, subdivision 3;
1.2718B.305; 18B.316, subdivisions 1, 3, 4, 8, 9; 18B.37, subdivision 4; 18C.111,
1.28subdivision 4; 18C.430; 18C.433, subdivision 1; 31.94; 41A.10, subdivision 2,
1.29by adding a subdivision; 41A.105, subdivisions 1a, 3, 5; 41A.12, subdivision
1.303, by adding a subdivision; 41B.04, subdivision 9; 41D.01, subdivision 4;
1.3184.027, by adding a subdivision; 84.415, by adding a subdivision; 84.63; 84.82,
1.32subdivision 3, by adding a subdivision; 84.8205, subdivision 1; 84.922, by
1.33adding a subdivision; 84.9256, subdivision 1; 84.928, subdivision 1; 84D.108,
1.34subdivision 2; 85.015, subdivision 13; 85.052, subdivision 6; 85.053, subdivision
1.358; 85.054, by adding a subdivision; 85.055, subdivisions 1, 2; 85.42; 89.0385;
1.3690.01, subdivisions 4, 5, 6, 8, 11; 90.031, subdivision 4; 90.041, subdivisions
1.372, 5, 6, 9, by adding subdivisions; 90.045; 90.061, subdivision 8; 90.101,
1.38subdivision 1; 90.121; 90.145; 90.151, subdivisions 1, 2, 3, 4, 6, 7, 8, 9;
1.3990.161; 90.162; 90.171; 90.181, subdivision 2; 90.191, subdivision 1; 90.193;
2.190.195; 90.201, subdivision 2a; 90.211; 90.221; 90.252, subdivision 1; 90.301,
2.2subdivisions 2, 4; 90.41, subdivision 1; 93.46, by adding a subdivision; 93.481,
2.3subdivision 3; 97A.401, subdivision 3; 103G.265, subdivisions 2, 3; 103G.271,
2.4subdivisions 1, 4; 103G.287, subdivisions 1, 4, 5; 103I.205, subdivision 1;
2.5114D.50, subdivision 4; 115A.1320, subdivision 1; 115B.20, subdivision
2.66; 115B.28, subdivision 1; 115B.421; 115C.02, subdivision 4; 115C.08,
2.7subdivision 4, by adding a subdivision; 115D.10; 116.48, subdivision 6; 116C.03,
2.8subdivisions 2, 4, 5; 116D.04, by adding a subdivision; 116J.437, subdivision 1;
2.9223.17, by adding a subdivision; 232.22, by adding a subdivision; 239.051, by
2.10adding subdivisions; 239.761, subdivision 3; 239.791, subdivisions 1, 2a, 2b;
2.11239.7911; 275.066; 282.04, subdivision 1; 296A.01, by adding a subdivision;
2.12473.846; 583.215; Laws 2010, chapter 215, article 3, section 3, subdivision 6,
2.13as amended; Laws 2010, chapter 361, article 3, section 7; proposing coding for
2.14new law in Minnesota Statutes, chapters 17; 18; 84; 90; 93; 103G; 115; 115A;
2.15116C; 383B; proposing coding for new law as Minnesota Statutes, chapter 442A;
2.16repealing Minnesota Statutes 2012, sections 18.91, subdivisions 3, 5; 18B.07,
2.17subdivision 6; 90.163; 90.173; 90.41, subdivision 2; 103G.265, subdivision 2a;
2.18115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10; 115.19; 115.20; 115.21; 115.22;
2.19115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29; 115.30; 115.31; 115.32;
2.20115.33; 115.34; 115.35; 115.36; 115.37; 239.791, subdivision 1a; Laws 2011,
2.21First Special Session chapter 2, article 4, section 30; Minnesota Rules, parts
2.227021.0010, subparts 1, 2, 4, 5; 7021.0020; 7021.0030; 7021.0040; 7021.0050,
2.23subpart 5; 9210.0300; 9210.0310; 9210.0320; 9210.0330; 9210.0340; 9210.0350;
2.249210.0360; 9210.0370; 9210.0380; 9220.0530, subpart 6.
2.25BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.26ARTICLE 1
2.27AGRICULTURE APPROPRIATIONS

2.28
Section 1. SUMMARY OF APPROPRIATIONS.
2.29The amounts shown in this section summarize direct appropriations, by fund, made
2.30in this article.
2.31
2014
2015
Total
2.32
General
$
39,050,000
$
39,050,000
$
78,100,000
2.33
Agricultural
$
1,240,000
$
1,240,000
$
2,480,000
2.34
Remediation
$
388,000
$
388,000
$
776,000
2.35
Total
$
40,678,000
$
40,678,000
$
81,356,000

2.36
Sec. 2. AGRICULTURE APPROPRIATIONS.
2.37The sums shown in the columns marked "Appropriations" are appropriated to the
2.38agencies and for the purposes specified in this act. The appropriations are from the general
2.39fund, or another named fund, and are available for the fiscal years indicated for each
2.40purpose. The figures "2014" and "2015" used in this act mean that the appropriations
2.41listed under them are available for the fiscal year ending June 30, 2014, or June 30, 2015,
2.42respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015.
2.43"The biennium" is fiscal years 2014 and 2015.
3.1
APPROPRIATIONS
3.2
Available for the Year
3.3
Ending June 30
3.4
2014
2015

3.5
Sec. 3. DEPARTMENT OF AGRICULTURE
3.6
Subdivision 1.Total Appropriation
$
33,198,000
$
33,198,000
3.7
Appropriations by Fund
3.8
2014
2015
3.9
General
31,570,000
31,570,000
3.10
Remediation
388,000
388,000
3.11
Agricultural
1,240,000
1,240,000
3.12The amounts that may be spent for each
3.13purpose are specified in the following
3.14subdivisions.
3.15
Subd. 2.Protection Services
12,808,000
12,808,000
3.16
Appropriations by Fund
3.17
2014
2015
3.18
General
11,980,000
11,980,000
3.19
Agricultural
440,000
440,000
3.20
Remediation
388,000
388,000
3.21$388,000 the first year and $388,000 the
3.22second year are from the remediation fund
3.23for administrative funding for the voluntary
3.24cleanup program.
3.25$25,000 the first year and $25,000 the second
3.26year are for compensation for destroyed or
3.27crippled animals under Minnesota Statutes,
3.28section 3.737. If the amount in the first year
3.29is insufficient, the amount in the second year
3.30is available in the first year.
3.31$75,000 the first year and $75,000 the second
3.32year are for compensation for crop damage
3.33under Minnesota Statutes, section 3.7371. If
3.34the amount in the first year is insufficient, the
4.1amount in the second year is available in the
4.2first year.
4.3If the commissioner determines that claims
4.4made under Minnesota Statutes, section
4.53.737 or 3.7371, are unusually high, amounts
4.6appropriated for either program may be
4.7transferred to the appropriation for the other
4.8program.
4.9$225,000 the first year and $225,000 the
4.10second year are for an increase in retail food
4.11handler inspections.
4.12$245,000 the first year and $245,000 the
4.13second year are for an increase in the
4.14operating budget for the Laboratory Services
4.15Division.
4.16Notwithstanding Minnesota Statutes, section
4.1718B.05, $90,000 the first year and $90,000
4.18the second year are from the pesticide
4.19regulatory account in the agricultural fund
4.20for an increase in the operating budget for
4.21the Laboratory Services Division.
4.22$100,000 the first year and $100,000 the
4.23second year are from the pesticide regulatory
4.24account in the agricultural fund to monitor
4.25pesticides and pesticide degradates in surface
4.26water and groundwater in areas vulnerable to
4.27surface water impairments and groundwater
4.28degradation and to use data collected to
4.29improve pesticide use practices. This is a
4.30onetime appropriation.
4.31$100,000 the first year and $100,000 the
4.32second year are from the pesticide regulatory
4.33account in the agricultural fund to update
4.34and modify applicator education and training
4.35materials. No later than January 15, 2015, the
5.1commissioner must report to the legislative
5.2committees with jurisdiction over agriculture
5.3finance regarding the agency's progress and a
5.4schedule of activities the commissioner will
5.5accomplish to update and modify additional
5.6materials by December 31, 2017.
5.7Notwithstanding Minnesota Statutes, section
5.818B.05, $150,000 the first year and $150,000
5.9the second year are from the pesticide
5.10regulatory account in the agricultural fund to:
5.11develop and use best management practices
5.12that protect pollinators by providing habitat
5.13necessary for their survival and reproduction;
5.14incorporate these practices into pesticide
5.15applicator and county agricultural inspector
5.16training; and increase public awareness of
5.17the importance of pollinators and pollinator
5.18habitat. The commissioner may transfer a
5.19portion of this appropriation to the Board of
5.20Regents of the University of Minnesota to
5.21design habitat and measure and report the
5.22outcomes achieved under this paragraph.
5.23This is a onetime appropriation.
5.24
5.25
Subd. 3.Agricultural Marketing and
Development
3,062,000
3,062,000
5.26$186,000 the first year and $186,000 the
5.27second year are for transfer to the Minnesota
5.28grown account and may be used as grants
5.29for Minnesota grown promotion under
5.30Minnesota Statutes, section 17.102. Grants
5.31may be made for one year. Notwithstanding
5.32Minnesota Statutes, section 16A.28, the
5.33appropriations encumbered under contract
5.34on or before June 30, 2015, for Minnesota
5.35grown grants in this paragraph are available
5.36until June 30, 2017.
6.1$100,000 each year is for a licensed
6.2education professional for the agriculture
6.3in the classroom program to develop and
6.4disseminate curriculum, provide teacher
6.5training opportunities, and work with
6.6schools to enhance agricultural literacy by
6.7incorporating agriculture into classroom
6.8curriculum.
6.9The commissioner may use funds
6.10appropriated in this subdivision for annual
6.11cost-share payments to resident farmers
6.12or entities that sell, process, or package
6.13agricultural products in this state for the costs
6.14of organic certification. Annual cost-share
6.15payments must be 75 percent of the cost of the
6.16certification or $750, whichever is less. The
6.17commissioner may allocate these funds for
6.18organic market and program development,
6.19including organic producer education efforts,
6.20assistance for persons transitioning from
6.21conventional to organic agriculture, or
6.22sustainable agriculture demonstration grants
6.23authorized under Minnesota Statutes, section
6.2417.116, and pertaining to organic research or
6.25demonstration. Any unencumbered balance
6.26does not cancel at the end of the first year
6.27and is available for the second year.
6.28
6.29
Subd. 4.Bioenergy and Value-Added
Agriculture
10,235,000
10,235,000
6.30$10,235,000 the first year and $10,235,000
6.31the second year are for the agricultural
6.32growth, research, and innovation program
6.33in Minnesota Statutes, section 41A.12.
6.34The commissioner shall consider creating
6.35a competitive grant program for small
6.36renewable energy projects for rural residents.
7.1No later than February 1, 2014, and February
7.21, 2015, the commissioner must report to
7.3the legislative committees with jurisdiction
7.4over agriculture policy and finance regarding
7.5the commissioner's accomplishments and
7.6anticipated accomplishments in the following
7.7areas: developing new markets for Minnesota
7.8farmers by providing more fruits and
7.9vegetables for Minnesota school children;
7.10facilitating the start-up, modernization,
7.11or expansion of livestock operations
7.12including beginning and transitioning
7.13livestock operations; facilitating the start-up,
7.14modernization, or expansion of other
7.15beginning and transitioning farms; research
7.16on conventional and cover crops; and biofuel
7.17and other renewable energy development
7.18including small renewable energy projects
7.19for rural residents.
7.20The commissioner may use up to 4.5 percent
7.21of this appropriation for costs incurred to
7.22administer the program. Any unencumbered
7.23balance does not cancel at the end of the first
7.24year and is available for the second year.
7.25Notwithstanding Minnesota Statutes, section
7.2616A.28, the appropriations encumbered
7.27under contract on or before June 30, 2015, for
7.28agricultural growth, research, and innovation
7.29grants in this subdivision are available until
7.30June 30, 2017.
7.31Money in this appropriation may be used
7.32to provide additional assistance to persons
7.33eligible for the pilot agricultural microloan
7.34program under Minnesota Statutes, section
7.3541B.056.
8.1Funds in this appropriation may be used for
8.2grants under this paragraph. The NextGen
8.3Energy Board, established in Minnesota
8.4Statutes, section 41A.105, shall make
8.5recommendations to the commissioner on
8.6grants for owners of Minnesota facilities
8.7producing bioenergy, biobased content,
8.8or a biobased formulated product; for
8.9organizations that provide for on-station,
8.10on-farm field scale research and outreach to
8.11develop and test the agronomic and economic
8.12requirements of diverse stands of prairie
8.13plants and other perennials for bioenergy
8.14systems; or for certain nongovernmental
8.15entities. For the purposes of this paragraph,
8.16"bioenergy" includes transportation fuels
8.17derived from cellulosic material, as well as
8.18the generation of energy for commercial heat,
8.19industrial process heat, or electrical power
8.20from cellulosic materials via gasification or
8.21other processes. Grants are limited to 50
8.22percent of the cost of research, technical
8.23assistance, or equipment related to bioenergy,
8.24biobased content, or biobased formulated
8.25product production or $500,000, whichever
8.26is less. Grants to nongovernmental entities
8.27for the development of business plans and
8.28structures related to community ownership
8.29of eligible bioenergy facilities together may
8.30not exceed $150,000. The board shall make
8.31a good-faith effort to select projects that have
8.32merit and, when taken together, represent a
8.33variety of bioenergy technologies, biomass
8.34feedstocks, and geographic regions of the
8.35state. Projects must have a qualified engineer
8.36provide certification on the technology and
9.1fuel source. Grantees must provide reports
9.2at the request of the commissioner. No later
9.3than February 1, 2014, and February 1,
9.42015, the commissioner shall report on the
9.5projects funded under this appropriation to
9.6the legislative committees with jurisdiction
9.7over agriculture policy and finance.
9.8Money in this appropriation may be used
9.9for sustainable agriculture grants under
9.10Minnesota Statutes, section 17.116.
9.11Notwithstanding Minnesota Statutes, section
9.1241A.12, subdivision 3, of the amount
9.13appropriated in this subdivision, $1,000,000
9.14the first year and $1,000,000 the second year
9.15are for distribution in equal amounts to each
9.16of the state's county fairs to enhance arts
9.17access and education and to preserve and
9.18promote Minnesota's history and cultural
9.19heritage.
9.20
9.21
Subd. 5.Administration and Financial
Assistance
7,093,000
7,093,000
9.22
Appropriations by Fund
9.23
General
6,293,000
6,293,000
9.24
Agricultural
800,000
800,000
9.25$634,000 the first year and $634,000 the
9.26second year are for continuation of the dairy
9.27development and profitability enhancement
9.28and dairy business planning grant programs
9.29established under Laws 1997, chapter
9.30216, section 7, subdivision 2, and Laws
9.312001, First Special Session chapter 2,
9.32section 9, subdivision 2. The commissioner
9.33may allocate the available sums among
9.34permissible activities, including efforts to
9.35improve the quality of milk produced in the
9.36state in the proportions that the commissioner
10.1deems most beneficial to Minnesota's
10.2dairy farmers. The commissioner must
10.3submit a detailed accomplishment report
10.4and a work plan detailing future plans for,
10.5and anticipated accomplishments from,
10.6expenditures under this program to the
10.7chairs and ranking minority members of the
10.8legislative committees with jurisdiction over
10.9agricultural policy and finance on or before
10.10the start of each fiscal year. If significant
10.11changes are made to the plans in the course
10.12of the year, the commissioner must notify the
10.13chairs and ranking minority members.
10.14$47,000 the first year and $47,000 the second
10.15year are for the Northern Crops Institute.
10.16These appropriations may be spent to
10.17purchase equipment.
10.18$18,000 the first year and $18,000 the
10.19second year are for a grant to the Minnesota
10.20Livestock Breeders Association.
10.21$235,000 the first year and $235,000 the
10.22second year are for grants to the Minnesota
10.23Agricultural Education and Leadership
10.24Council for programs of the council under
10.25Minnesota Statutes, chapter 41D.
10.26$474,000 the first year and $474,000 the
10.27second year are for payments to county and
10.28district agricultural societies and associations
10.29under Minnesota Statutes, section 38.02,
10.30subdivision 1. Aid payments to county and
10.31district agricultural societies and associations
10.32shall be disbursed no later than July 15 of
10.33each year. These payments are the amount of
10.34aid from the state for an annual fair held in
10.35the previous calendar year.
11.1$1,000 the first year and $1,000 the second
11.2year are for grants to the Minnesota State
11.3Poultry Association.
11.4$108,000 the first year and $108,000 the
11.5second year are for annual grants to the
11.6Minnesota Turf Seed Council for basic
11.7and applied research on: (1) the improved
11.8production of forage and turf seed related to
11.9new and improved varieties; and (2) native
11.10plants, including plant breeding, nutrient
11.11management, pest management, disease
11.12management, yield, and viability. The grant
11.13recipient may subcontract with a qualified
11.14third party for some or all of the basic or
11.15applied research.
11.16$500,000 the first year and $500,000 the
11.17second year are for grants to Second Harvest
11.18Heartland on behalf of Minnesota's six
11.19Second Harvest food banks for the purchase
11.20of milk for distribution to Minnesota's food
11.21shelves and other charitable organizations
11.22that are eligible to receive food from the food
11.23banks. Milk purchased under the grants must
11.24be acquired from Minnesota milk processors
11.25and based on low-cost bids. The milk must be
11.26allocated to each Second Harvest food bank
11.27serving Minnesota according to the formula
11.28used in the distribution of United States
11.29Department of Agriculture commodities
11.30under The Emergency Food Assistance
11.31Program (TEFAP). Second Harvest
11.32Heartland must submit quarterly reports
11.33to the commissioner on forms prescribed
11.34by the commissioner. The reports must
11.35include, but are not limited to, information
11.36on the expenditure of funds, the amount
12.1of milk purchased, and the organizations
12.2to which the milk was distributed. Second
12.3Harvest Heartland may enter into contracts
12.4or agreements with food banks for shared
12.5funding or reimbursement of the direct
12.6purchase of milk. Each food bank receiving
12.7money from this appropriation may use up to
12.8two percent of the grant for administrative
12.9expenses.
12.10$94,000 the first year and $94,000 the
12.11second year are for transfer to the Board of
12.12Trustees of the Minnesota State Colleges
12.13and Universities for statewide mental health
12.14counseling support to farm families and
12.15business operators through farm business
12.16management programs at Central Lakes
12.17College and Ridgewater College.
12.18$17,000 the first year and $17,000 the
12.19second year are for grants to the Minnesota
12.20Horticultural Society.
12.21Notwithstanding Minnesota Statutes,
12.22section 18C.131, $800,000 the first year
12.23and $800,000 the second year are from the
12.24fertilizer account in the agricultural fund
12.25for grants for fertilizer research as awarded
12.26by the Minnesota Agricultural Fertilizer
12.27Research and Education Council under
12.28Minnesota Statutes, section 18C.71. The
12.29amount appropriated in either fiscal year
12.30must not exceed 57 percent of the inspection
12.31fee revenue collected under Minnesota
12.32Statutes, section 18C.425, subdivision 6,
12.33during the previous fiscal year. No later
12.34than February 1, 2015, the commissioner
12.35shall report to the legislative committees
13.1with jurisdiction over agriculture finance.
13.2The report must include the progress and
13.3outcome of funded projects as well as the
13.4sentiment of the council concerning the need
13.5for additional research funds.

13.6
Sec. 4. BOARD OF ANIMAL HEALTH
$
4,837,000
$
4,837,000

13.7
13.8
Sec. 5. AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE
$
2,643,000
$
2,643,000

13.9ARTICLE 2
13.10AGRICULTURE POLICY

13.11    Section 1. Minnesota Statutes 2012, section 13.6435, is amended by adding a
13.12subdivision to read:
13.13    Subd. 14. Agricultural water quality certification program. Data collected
13.14under the Minnesota agricultural water quality certification program are classified under
13.15section 17.9899.

13.16    Sec. 2. Minnesota Statutes 2012, section 17.03, subdivision 3, is amended to read:
13.17    Subd. 3. Cooperation with federal agencies. (a) The commissioner shall cooperate
13.18with the government of the United States, with financial agencies created to assist in the
13.19development of the agricultural resources of this state, and so far as practicable may use
13.20the facilities provided by the existing state departments and the various state and local
13.21organizations. This subdivision is intended to relate to every function and duty which
13.22devolves upon the commissioner.
13.23    (b) The commissioner may apply for, receive, and disburse federal funds made
13.24available to the state by federal law or regulation for any purpose related to the powers and
13.25duties of the commissioner. All money received by the commissioner under this paragraph
13.26shall be deposited in the state treasury and is appropriated to the commissioner for the
13.27purposes for which it was received. Money made available under this paragraph may
13.28be paid pursuant to applicable federal regulations and rate structures. Money received
13.29under this paragraph does not cancel and is available for expenditure according to federal
13.30law. The commissioner may contract with and enter into grant agreements with persons,
13.31organizations, educational institutions, firms, corporations, other state agencies, and any
13.32agency or instrumentality of the federal government to carry out agreements made with
14.1the federal government relating to the expenditure of money under this paragraph. Bid
14.2requirements under chapter 16C do not apply to contracts under this paragraph.

14.3    Sec. 3. Minnesota Statutes 2012, section 17.1015, is amended to read:
14.417.1015 PROMOTIONAL EXPENDITURES.
14.5In order to accomplish the purposes of section 17.101, the commissioner may
14.6participate jointly with private persons in appropriate programs and projects and may enter
14.7into contracts to carry out those programs and projects. The contracts may not include
14.8the acquisition of land or buildings and are not subject to the provisions of chapter 16C
14.9relating to competitive bidding.
14.10The commissioner may spend money appropriated for the purposes of section
14.1117.101 in the same manner that private persons, firms, corporations, and associations
14.12make expenditures for these purposes, and expenditures made pursuant to section 17.101
14.13for food, lodging, or travel are not governed by the travel rules of the commissioner of
14.14management and budget.

14.15    Sec. 4. Minnesota Statutes 2012, section 17.118, subdivision 2, is amended to read:
14.16    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this
14.17subdivision have the meanings given them.
14.18    (b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed
14.19cervidae, ratitae, bison, sheep, horses, and llamas.
14.20    (c) "Qualifying expenditures" means the amount spent for:
14.21    (1) the acquisition, construction, or improvement of buildings or facilities for the
14.22production of livestock or livestock products;
14.23    (2) the development of pasture for use by livestock including, but not limited to, the
14.24acquisition, development, or improvement of:
14.25    (i) lanes used by livestock that connect pastures to a central location;
14.26    (ii) watering systems for livestock on pasture including water lines, booster pumps,
14.27and well installations;
14.28    (iii) livestock stream crossing stabilization; and
14.29    (iv) fences; or
14.30    (3) the acquisition of equipment for livestock housing, confinement, feeding, and
14.31waste management including, but not limited to, the following:
14.32    (i) freestall barns;
14.33    (ii) watering facilities;
14.34    (iii) feed storage and handling equipment;
15.1    (iv) milking parlors;
15.2    (v) robotic equipment;
15.3    (vi) scales;
15.4    (vii) milk storage and cooling facilities;
15.5    (viii) bulk tanks;
15.6    (ix) computer hardware and software and associated equipment used to monitor
15.7the productivity and feeding of livestock;
15.8    (x) manure pumping and storage facilities;
15.9    (xi) swine farrowing facilities;
15.10    (xii) swine and cattle finishing barns;
15.11    (xiii) calving facilities;
15.12    (xiv) digesters;
15.13    (xv) equipment used to produce energy;
15.14    (xvi) on-farm processing facilities equipment;
15.15    (xvii) fences; and
15.16    (xviii) livestock pens and corrals and sorting, restraining, and loading chutes.
15.17    Except for qualifying pasture development expenditures under clause (2), qualifying
15.18expenditures only include amounts that are allowed to be capitalized and deducted under
15.19either section 167 or 179 of the Internal Revenue Code in computing federal taxable
15.20income. Qualifying expenditures do not include an amount paid to refinance existing debt.
15.21    (d) "Qualifying period" means, for a grant awarded during a fiscal year, that full
15.22calendar year of which the first six months precede the first day of the current fiscal year. For
15.23example, an eligible person who makes qualifying expenditures during calendar year 2008
15.24is eligible to receive a livestock investment grant between July 1, 2008, and June 30, 2009.

15.25    Sec. 5. [17.9891] PURPOSE.
15.26The commissioner, in consultation with the commissioner of natural resources,
15.27commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
15.28may implement a Minnesota agricultural water quality certification program whereby a
15.29producer who demonstrates practices and management sufficient to protect water quality
15.30is certified for up to ten years and presumed to be contributing the producer's share of
15.31any targeted reduction of water pollutants during the certification period. The program
15.32is voluntary. The voluntary program will first be piloted in selected watersheds across
15.33the state, until the commissioner, in consultation with the Minnesota Agricultural Water
15.34Quality Certification Program Advisory Committee, commissioner of natural resources,
16.1commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
16.2determines the program is suitable to be implemented in other watersheds.

16.3    Sec. 6. [17.9892] DEFINITIONS.
16.4    Subdivision 1. Application. The definitions in this section apply to sections
16.517.9891 to 17.993.
16.6    Subd. 2. Certification. "Certification" means a producer has demonstrated
16.7compliance with all applicable environmental rules and statutes for all of the producer's
16.8owned and rented agricultural land and has achieved a satisfactory score through the
16.9certification instrument as verified by a certifying agent.
16.10    Subd. 3. Certifying agent. "Certifying agent" means a person who is authorized
16.11by the commissioner to assess producers to determine whether a producer satisfies the
16.12standards of the program.
16.13    Subd. 4. Effective control. "Effective control" means possession of land by
16.14ownership, written lease, or other legal agreement and authority to act as decision
16.15maker for the day-to-day management of the operation at the time the producer achieves
16.16certification and for the required certification period.
16.17    Subd. 5. Eligible land. "Eligible land" means all acres of a producer's agricultural
16.18operation, whether contiguous or not, that are under the effective control of the producer
16.19at the time the producer enters into the program and that the producer operates with
16.20equipment, labor, and management.
16.21    Subd. 6. Program. "Program" means the Minnesota agricultural water quality
16.22certification program.
16.23    Subd. 7. Technical assistance. "Technical assistance" means professional, advisory,
16.24or cost-share assistance provided to individuals in order to achieve certification.

16.25    Sec. 7. [17.9893] CERTIFICATION INSTRUMENT.
16.26The commissioner, in consultation with the Minnesota Agricultural Water Quality
16.27Certification Program Advisory Committee, commissioner of natural resources,
16.28commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
16.29shall develop an analytical instrument to assess the water quality practices and
16.30management of agricultural operations. This instrument shall be used to certify that the
16.31water quality practices and management of an agricultural operation are consistent with
16.32state water quality goals and standards. The commissioner shall define a satisfactory score
16.33for certification purposes. The certification instrument tool shall:
16.34(1) integrate applicable existing regulatory requirements;
17.1(2) utilize technology and prioritize ease of use;
17.2(3) utilize a water quality index or score applicable to the landscape;
17.3(4) incorporate a process for updates and revisions as practices, management, and
17.4technology changes become established and approved; and
17.5(5) comprehensively address water quality impacts.

17.6    Sec. 8. [17.9894] CERTIFYING AGENT LICENSE.
17.7    Subdivision 1. License. A person who offers certification services to producers
17.8as part of the program must satisfy all criteria in subdivision 2 and be licensed by
17.9the commissioner. A certifying agent is ineligible to provide certification services
17.10to any producer to whom the certifying agent has also provided technical assistance.
17.11Notwithstanding section 16A.1283, the commissioner may set license fees.
17.12    Subd. 2. Certifying agent requirements. In order to be licensed as a certifying
17.13agent, a person must:
17.14(1) be an agricultural conservation professional employed by a soil and water
17.15conservation district or the Natural Resources Conservation Service, a Minnesota certified
17.16crop advisor recognized by the American Society of Agronomy, or an individual with
17.17agricultural conservation experience approved by the commissioner. The commissioner
17.18may establish eligibility criteria by rule;
17.19(2) have passed a comprehensive exam, as set by the commissioner, evaluating
17.20knowledge of water quality, soil health, best farm management techniques, and the
17.21certification instrument; and
17.22(3) maintain continuing education requirements as set by the commissioner.

17.23    Sec. 9. [17.9895] DUTIES OF A CERTIFYING AGENT.
17.24    Subdivision 1. Duties. A certifying agent shall conduct a formal certification
17.25assessment utilizing the certification instrument to determine whether a producer meets
17.26program criteria. If a producer satisfies all requirements, the certifying agent shall notify
17.27the commissioner of the producer's eligibility and request that the commissioner issue a
17.28certificate. All records and documents used in the assessment shall be compiled by the
17.29certifying agent and submitted to the commissioner.
17.30    Subd. 2. Violations. (a) In the event a certifying agent violates any provision of
17.31sections 17.9891 to 17.993 or an order of the commissioner, the commissioner may issue a
17.32written warning or a correction order and may suspend or revoke a license.
17.33(b) If the commissioner suspends or revokes a license, the certifying agent has ten
17.34days from the date of suspension or revocation to appeal. If a certifying agent appeals, the
18.1commissioner shall hold an administrative hearing within 30 days of the suspension or
18.2revocation of the license, or longer by agreement of the parties, to determine whether the
18.3license is revoked or suspended. The commissioner shall issue an opinion within 30 days.
18.4If a person notifies the commissioner that the person intends to contest the commissioner's
18.5opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with
18.6the applicable provisions of chapter 14 for hearings in contested cases.

18.7    Sec. 10. [17.9896] CERTIFICATION PROCEDURES.
18.8    Subdivision 1. Producer duties. A producer who seeks certification of eligible land
18.9shall conduct an initial assessment using the certification instrument, obtain technical
18.10assistance if necessary to achieve a satisfactory score on the certification instrument, and
18.11apply for certification from a licensed certifying agent.
18.12    Subd. 2. Owned land. Once certified, if a producer obtains ownership of additional
18.13agricultural land, the producer must notify a certifying agent and obtain certification of the
18.14additional land within one year in order to retain the producer's original certification.
18.15    Subd. 3. Leased land. Once certified, if a producer leases additional land, then the
18.16producer must notify a certifying agent before farming operations commence on the newly
18.17leased land. A producer who operates leased land is not required to implement practices
18.18that permanently alter the landscape in order to be certified or remain certified if the land
18.19is added following the original certification. A producer who operates leased land must
18.20demonstrate sufficient annual crop management practices, consistent with the original
18.21certification agreement, in order to remain certified.
18.22    Subd. 4. Violations. (a) The commissioner may revoke a certification if the
18.23producer violates subdivision 2 or 3.
18.24(b) The commissioner may revoke a certification and seek reimbursement of any
18.25monetary benefit a producer may have received due to certification from a producer who
18.26fails to maintain certification criteria.
18.27(c) If the commissioner revokes a certification, the producer has 30 days from the
18.28date of suspension or revocation to appeal. If a producer appeals, the commissioner shall
18.29hold an administrative hearing within 30 days of the suspension or revocation of the
18.30certification, or longer by agreement of the parties, to determine whether the certification
18.31is revoked or suspended. The commissioner shall issue an opinion within 30 days. If the
18.32producer notifies the commissioner that the producer intends to contest the commissioner's
18.33opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with
18.34the applicable provisions of chapter 14 for hearings in contested cases.

19.1    Sec. 11. [17.9897] CERTIFICATION CERTAINTY.
19.2(a) Once a producer is certified, the producer:
19.3(1) retains certification for up to ten years from the date of certification if the
19.4producer complies with the certification agreement, even if the producer does not comply
19.5with new state water protection laws or rules that take effect during the certification period;
19.6(2) is presumed to be meeting the producer's contribution to any targeted reduction
19.7of pollutants during the certification period;
19.8(3) is required to continue implementation of practices that maintain the producer's
19.9certification; and
19.10(4) is required to retain all records pertaining to certification.
19.11(b) Paragraph (a) does not preclude enforcement of a local rule or ordinance by a
19.12local unit of government.

19.13    Sec. 12. [17.9898] AUDITS.
19.14The commissioner shall perform random audits of producers and certifying agents to
19.15ensure compliance with the program. All producers and certifying agents shall cooperate
19.16with the commissioner during these audits, and provide all relevant documents to the
19.17commissioner for inspection and copying. Any delay, obstruction, or refusal to cooperate
19.18with the commissioner's audit or falsification of or failure to provide required data or
19.19information is a violation subject to the provisions of section 17.9895, subdivision 2, or
19.2017.9896, subdivision 3.

19.21    Sec. 13. [17.9899] DATA.
19.22All data collected under the program that identifies a producer or a producer's
19.23location are considered nonpublic data as defined in section 13.02, subdivision 9, or
19.24private data on individuals as defined in section 13.02, subdivision 12. The commissioner
19.25shall make available summary data of program outcomes on data classified as private
19.26or nonpublic under this section.

19.27    Sec. 14. [17.991] RULEMAKING.
19.28The commissioner may adopt rules to implement the program.

19.29    Sec. 15. [17.992] REPORTS.
19.30The commissioner, in consultation with the Minnesota Agricultural Water Quality
19.31Certification Program Advisory Committee, commissioner of natural resources,
19.32commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
20.1shall issue a biennial report to the chairs and ranking minority members of the legislative
20.2committees with jurisdiction over agricultural policy on the status of the program.

20.3    Sec. 16. [17.993] FINANCIAL ASSISTANCE.
20.4The commissioner may use contributions from gifts or other state accounts, provided
20.5that the purpose of the expenditure is consistent with the purpose of the accounts, for
20.6grants, loans, or other financial assistance.

20.7    Sec. 17. Minnesota Statutes 2012, section 18.77, subdivision 3, is amended to read:
20.8    Subd. 3. Control. "Control" means to destroy all or part of the aboveground
20.9growth of noxious weeds manage or prevent the maturation and spread of propagating
20.10parts of noxious weeds from one area to another by a lawful method that does not cause
20.11unreasonable adverse effects on the environment as defined in section 18B.01, subdivision
20.1231
, and prevents the maturation and spread of noxious weed propagating parts from one
20.13area to another.

20.14    Sec. 18. Minnesota Statutes 2012, section 18.77, subdivision 4, is amended to read:
20.15    Subd. 4. Eradicate. "Eradicate" means to destroy the aboveground growth and the
20.16roots and belowground plant parts of noxious weeds by a lawful method that, which
20.17 prevents the maturation and spread of noxious weed propagating parts from one area
20.18to another.

20.19    Sec. 19. Minnesota Statutes 2012, section 18.77, subdivision 10, is amended to read:
20.20    Subd. 10. Permanent pasture, hay meadow, woodlot, and or other noncrop
20.21area. "Permanent pasture, hay meadow, woodlot, and or other noncrop area" means an
20.22area of predominantly native or seeded perennial plants that can be used for grazing or hay
20.23purposes but is not harvested on a regular basis and is not considered to be a growing crop.

20.24    Sec. 20. Minnesota Statutes 2012, section 18.77, subdivision 12, is amended to read:
20.25    Subd. 12. Propagating parts. "Propagating parts" means all plant parts, including
20.26seeds, that are capable of producing new plants.

20.27    Sec. 21. [18.771] NOXIOUS WEED CATEGORIES.
20.28(a) For purposes of designation under section 18.79, subdivision 13, noxious weed
20.29category means each of the following categories.
21.1(b) "Prohibited noxious weeds" includes noxious weeds that must be controlled or
21.2eradicated on all lands within the state. Transportation of a prohibited noxious weed's
21.3propagating parts is restricted by permit except as allowed by section 18.82. Prohibited
21.4noxious weeds may not be sold or propagated in Minnesota. There are two regulatory
21.5listings for prohibited noxious weeds in Minnesota:
21.6(1) the noxious weed eradicate list is established. Prohibited noxious weeds placed
21.7on the noxious weed eradicate list are plants that are not currently known to be present in
21.8Minnesota or are not widely established. These species must be eradicated; and
21.9(2) the noxious weed control list is established. Prohibited noxious weeds placed on
21.10the noxious weed control list are plants that are already established throughout Minnesota
21.11or regions of the state. Species on this list must at least be controlled.
21.12(c) "Restricted noxious weeds" includes noxious weeds that are widely distributed
21.13in Minnesota, but for which the only feasible means of control is to prevent their spread
21.14by prohibiting the importation, sale, and transportation of their propagating parts in the
21.15state, except as allowed by section 18.82.
21.16(d) "Specially regulated plants" includes noxious weeds that may be native
21.17species or have demonstrated economic value, but also have the potential to cause harm
21.18in noncontrolled environments. Plants designated as specially regulated have been
21.19determined to pose ecological, economical, or human or animal health concerns. Species
21.20specific management plans or rules that define the use and management requirements
21.21for these plants must be developed by the commissioner of agriculture for each plant
21.22designated as specially regulated. The commissioner must also take measures to minimize
21.23the potential for harm caused by these plants.
21.24(e) "County noxious weeds" includes noxious weeds that are designated by
21.25individual county boards to be enforced as prohibited noxious weeds within the county's
21.26jurisdiction and must be approved by the commissioner of agriculture, in consultation with
21.27the Noxious Weed Advisory Committee. Each county board must submit newly proposed
21.28county noxious weeds to the commissioner of agriculture for review. Approved county
21.29noxious weeds shall also be posted with the county's general weed notice prior to May 15
21.30each year. Counties are solely responsible for developing county noxious weed lists and
21.31their enforcement.

21.32    Sec. 22. Minnesota Statutes 2012, section 18.78, subdivision 3, is amended to read:
21.33    Subd. 3. Cooperative Weed control agreement. The commissioner, municipality,
21.34or county agricultural inspector or county-designated employee may enter into a
21.35cooperative weed control agreement with a landowner or weed management area
22.1group to establish a mutually agreed-upon noxious weed management plan for up to
22.2three years duration, whereby a noxious weed problem will be controlled without
22.3additional enforcement action. If a property owner fails to comply with the noxious weed
22.4management plan, an individual notice may be served.

22.5    Sec. 23. Minnesota Statutes 2012, section 18.79, subdivision 6, is amended to read:
22.6    Subd. 6. Training for control or eradication of noxious weeds. The commissioner
22.7shall conduct initial training considered necessary for inspectors and county-designated
22.8employees in the enforcement of the Minnesota Noxious Weed Law. The director of the
22.9 University of Minnesota Extension Service may conduct educational programs for the
22.10general public that will aid compliance with the Minnesota Noxious Weed Law. Upon
22.11request, the commissioner may provide information and other technical assistance to the
22.12county agricultural inspector or county-designated employee to aid in the performance of
22.13responsibilities specified by the county board under section 18.81, subdivisions 1a and 1b.

22.14    Sec. 24. Minnesota Statutes 2012, section 18.79, subdivision 13, is amended to read:
22.15    Subd. 13. Noxious weed designation. The commissioner, in consultation with the
22.16Noxious Weed Advisory Committee, shall determine which plants are noxious weeds
22.17subject to control regulation under sections 18.76 to 18.91. The commissioner shall
22.18prepare, publish, and revise as necessary, but at least once every three years, a list of
22.19noxious weeds and their designated classification. The list must be distributed to the public
22.20by the commissioner who may request the help of the University of Minnesota Extension,
22.21the county agricultural inspectors, and any other organization the commissioner considers
22.22appropriate to assist in the distribution. The commissioner may, in consultation with
22.23the Noxious Weed Advisory Committee, accept and consider noxious weed designation
22.24petitions from Minnesota citizens or Minnesota organizations or associations.

22.25    Sec. 25. Minnesota Statutes 2012, section 18.82, subdivision 1, is amended to read:
22.26    Subdivision 1. Permits. Except as provided in section 21.74, if a person wants to
22.27transport along a public highway materials or equipment containing the propagating
22.28parts of weeds designated as noxious by the commissioner, the person must secure a
22.29written permit for transportation of the material or equipment from an inspector or
22.30county-designated employee. Inspectors or county-designated employees may issue
22.31permits to persons residing or operating within their jurisdiction. If the noxious weed
22.32propagating parts are removed from materials and equipment or devitalized before
22.33being transported, a permit is not needed A permit is not required for the transport of
23.1noxious weeds for the purpose of destroying propagating parts at a Department of
23.2Agriculture-approved disposal site. Anyone transporting noxious weed propagating parts
23.3for the purpose of disposal at an approved site shall ensure that all materials are contained
23.4in a manner that prevents escape during transport.

23.5    Sec. 26. Minnesota Statutes 2012, section 18.91, subdivision 1, is amended to read:
23.6    Subdivision 1. Duties. The commissioner shall consult with the Noxious Weed
23.7Advisory Committee to advise the commissioner concerning responsibilities under
23.8the noxious weed control program. The committee shall also evaluate species for
23.9invasiveness, difficulty of control, cost of control, benefits, and amount of injury caused
23.10by them. For each species evaluated, the committee shall recommend to the commissioner
23.11on which noxious weed list or lists, if any, the species should be placed. Species currently
23.12 designated as prohibited or restricted noxious weeds or specially regulated plants must
23.13be reevaluated every three years for a recommendation on whether or not they need to
23.14remain on the noxious weed lists. The committee shall also advise the commissioner on
23.15the implementation of the Minnesota Noxious Weed Law and assist the commissioner in
23.16the development of management criteria for each noxious weed category. Members of
23.17the committee are not entitled to reimbursement of expenses nor payment of per diem.
23.18Members shall serve two-year terms with subsequent reappointment by the commissioner.

23.19    Sec. 27. Minnesota Statutes 2012, section 18.91, subdivision 2, is amended to read:
23.20    Subd. 2. Membership. The commissioner shall appoint members, which shall
23.21include representatives from the following:
23.22(1) horticultural science, agronomy, and forestry at the University of Minnesota;
23.23(2) the nursery and landscape industry in Minnesota;
23.24(3) the seed industry in Minnesota;
23.25(4) the Department of Agriculture;
23.26(5) the Department of Natural Resources;
23.27(6) a conservation organization;
23.28(7) an environmental organization;
23.29(8) at least two farm organizations;
23.30(9) the county agricultural inspectors;
23.31(10) city, township, and county governments;
23.32(11) the Department of Transportation;
23.33(12) the University of Minnesota Extension;
23.34(13) the timber and forestry industry in Minnesota;
24.1(14) the Board of Water and Soil Resources; and
24.2(15) soil and water conservation districts.;
24.3(16) Minnesota Association of County Land Commissioners; and
24.4(17) members as needed.

24.5    Sec. 28. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
24.6to read:
24.7    Subd. 4a. Bulk pesticide storage facility. "Bulk pesticide storage facility" means a
24.8facility that is required to have a permit under section 18B.14.

24.9    Sec. 29. Minnesota Statutes 2012, section 18B.07, subdivision 4, is amended to read:
24.10    Subd. 4. Pesticide storage safeguards at application sites. A person may not
24.11allow a pesticide, rinsate, or unrinsed pesticide container to be stored, kept, or to remain in
24.12or on any site without safeguards adequate to prevent an incident. Pesticides may not be
24.13stored in an area with access to an open drain, unless a safeguard is provided.

24.14    Sec. 30. Minnesota Statutes 2012, section 18B.07, subdivision 5, is amended to read:
24.15    Subd. 5. Use of public water supplies for filling application equipment. (a) A
24.16person may not fill pesticide application equipment directly from a public water supply,
24.17as defined in section 144.382, or from public waters, as defined in section 103G.005,
24.18subdivision 15, unless the outlet from the public equipment or water supply is equipped
24.19with a backflow prevention device that complies with the Minnesota Plumbing Code
24.20under Minnesota Rules, parts 4715.2000 to 4715.2280.
24.21(b) Cross connections between a water supply used for filling pesticide application
24.22equipment are prohibited.
24.23(c) This subdivision does not apply to permitted applications of aquatic pesticides to
24.24public waters.

24.25    Sec. 31. Minnesota Statutes 2012, section 18B.07, subdivision 7, is amended to read:
24.26    Subd. 7. Cleaning equipment in or near surface water Pesticide handling
24.27restrictions. (a) A person may not:
24.28(1) clean pesticide application equipment in surface waters of the state; or
24.29(2) fill or clean pesticide application equipment adjacent to surface waters,
24.30ditches, or wells where, because of the slope or other conditions, pesticides or materials
24.31contaminated with pesticides could enter or contaminate the surface waters, groundwater,
24.32or wells, as a result of overflow, leakage, or other causes.
25.1(b) This subdivision does not apply to permitted application of aquatic pesticides to
25.2public waters.

25.3    Sec. 32. Minnesota Statutes 2012, section 18B.26, subdivision 3, is amended to read:
25.4    Subd. 3. Registration application and gross sales fee. (a) For an agricultural
25.5pesticide, a registrant shall pay an annual registration application fee for each agricultural
25.6pesticide of $350. The fee is due by December 31 preceding the year for which the
25.7application for registration is made. The fee is nonrefundable.
25.8(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual
25.9registration application fee for each nonagricultural pesticide of $350. The fee is due by
25.10December 31 preceding the year for which the application for registration is made. The
25.11fee is nonrefundable. The registrant of a nonagricultural pesticide shall pay, in addition to
25.12the $350 minimum fee, a fee of 0.5 percent of annual gross sales of the nonagricultural
25.13pesticide in the state and the annual gross sales of the nonagricultural pesticide sold into
25.14the state for use in this state. The commissioner may not assess a fee under this paragraph
25.15if the amount due based on percent of annual gross sales is less than $10 No fee is required
25.16if the fee due amount based on percent of annual gross sales of a nonagricultural pesticide
25.17is less than $10. The registrant shall secure sufficient sales information of nonagricultural
25.18pesticides distributed into this state from distributors and dealers, regardless of distributor
25.19location, to make a determination. Sales of nonagricultural pesticides in this state and
25.20sales of nonagricultural pesticides for use in this state by out-of-state distributors are not
25.21exempt and must be included in the registrant's annual report, as required under paragraph
25.22(g), and fees shall be paid by the registrant based upon those reported sales. Sales of
25.23nonagricultural pesticides in the state for use outside of the state are exempt from the
25.24gross sales fee in this paragraph if the registrant properly documents the sale location and
25.25distributors. A registrant paying more than the minimum fee shall pay the balance due by
25.26March 1 based on the gross sales of the nonagricultural pesticide by the registrant for the
25.27preceding calendar year. A pesticide determined by the commissioner to be a sanitizer or
25.28disinfectant is exempt from the gross sales fee.
25.29(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed
25.30pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the
25.31agricultural pesticide in the state and the annual gross sales of the agricultural pesticide
25.32sold into the state for use in this state.
25.33(d) In those cases where a registrant first sells an agricultural pesticide in or into the
25.34state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer
26.1license and is responsible for payment of the annual gross sales fee under paragraph (c),
26.2record keeping under paragraph (i), and all other requirements of section 18B.316.
26.3(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013,
26.4by the commissioner on the registration and sale of pesticides is less than $6,600,000, the
26.5commissioner, after a public hearing, may increase proportionally the pesticide sales and
26.6product registration fees under this chapter by the amount necessary to ensure this level
26.7of revenue is achieved. The authority under this section expires on June 30, 2014. The
26.8commissioner shall report any fee increases under this paragraph 60 days before the fee
26.9change is effective to the senate and house of representatives agriculture budget divisions.
26.10    (f) An additional fee of 50 percent of the registration application fee must be paid by
26.11the applicant for each pesticide to be registered if the application is a renewal application
26.12that is submitted after December 31.
26.13    (g) A registrant must annually report to the commissioner the amount, type and
26.14annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or
26.15otherwise distributed in the state. The report shall be filed by March 1 for the previous
26.16year's registration. The commissioner shall specify the form of the report or approve
26.17the method for submittal of the report and may require additional information deemed
26.18necessary to determine the amount and type of nonagricultural pesticide annually
26.19distributed in the state. The information required shall include the brand name, United
26.20States Environmental Protection Agency registration number, and amount of each
26.21nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but
26.22the information collected, if made public, shall be reported in a manner which does not
26.23identify a specific brand name in the report.
26.24(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually
26.25report to the commissioner the amount, type, and annual gross sales of each registered
26.26agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the
26.27state for use in the state. The report must be filed by January 31 for the previous year's
26.28sales. The commissioner shall specify the form, contents, and approved electronic method
26.29for submittal of the report and may require additional information deemed necessary to
26.30determine the amount and type of agricultural pesticide annually distributed within the
26.31state or into the state. The information required must include the brand name, United States
26.32Environmental Protection Agency registration number, and amount of each agricultural
26.33pesticide sold, offered for sale, or otherwise distributed in the state or into the state.
26.34(i) A person who registers a pesticide with the commissioner under paragraph (b),
26.35or a registrant under paragraph (d), shall keep accurate records for five years detailing
27.1all distribution or sales transactions into the state or in the state and subject to a fee and
27.2surcharge under this section.
27.3(j) The records are subject to inspection, copying, and audit by the commissioner
27.4and must clearly demonstrate proof of payment of all applicable fees and surcharges
27.5for each registered pesticide product sold for use in this state. A person who is located
27.6outside of this state must maintain and make available records required by this subdivision
27.7in this state or pay all costs incurred by the commissioner in the inspecting, copying, or
27.8auditing of the records.
27.9(k) The commissioner may adopt by rule regulations that require persons subject
27.10to audit under this section to provide information determined by the commissioner to be
27.11necessary to enable the commissioner to perform the audit.
27.12    (l) A registrant who is required to pay more than the minimum fee for any pesticide
27.13under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee
27.14paid after March 1 in the year for which the license is to be issued.

27.15    Sec. 33. Minnesota Statutes 2012, section 18B.305, is amended to read:
27.1618B.305 PESTICIDE EDUCATION AND TRAINING.
27.17    Subdivision 1. Education and training. (a) The commissioner, as the lead agency,
27.18 shall develop, implement or approve, and evaluate, in conjunction consultation with the
27.19 University of Minnesota Extension Service, the Minnesota State Colleges and Universities
27.20system, and other educational institutions, innovative educational and training programs
27.21addressing pesticide concerns including:
27.22(1) water quality protection;
27.23(2) endangered species protection;
27.24(3) minimizing pesticide residues in food and water;
27.25(4) worker protection and applicator safety;
27.26(5) chronic toxicity;
27.27(6) integrated pest management and pest resistance; and
27.28(7) pesticide disposal;
27.29(8) pesticide drift;
27.30(9) relevant laws including pesticide labels and labeling and state and federal rules
27.31and regulations; and
27.32(10) current science and technology updates.
27.33(b) The commissioner shall appoint educational planning committees which must
27.34include representatives of industry and applicators.
28.1(c) Specific current regulatory concerns must be discussed and, if appropriate,
28.2incorporated into each training session. Relevant changes to pesticide product labels or
28.3labeling or state and federal rules and regulations may be included.
28.4(d) The commissioner may approve programs from private industry, higher
28.5education institutions, and nonprofit organizations that meet minimum requirements for
28.6education, training, and certification.
28.7    Subd. 2. Training manual and examination development. The commissioner, in
28.8conjunction consultation with the University of Minnesota Extension Service and other
28.9higher education institutions, shall continually revise and update pesticide applicator
28.10training manuals and examinations. The manuals and examinations must be written to meet
28.11or exceed the minimum standards required by the United States Environmental Protection
28.12Agency and pertinent state specific information. Questions in the examinations must be
28.13determined by the commissioner in consultation with other responsible agencies. Manuals
28.14and examinations must include pesticide management practices that discuss prevention of
28.15pesticide occurrence in groundwaters groundwater and surface water of the state.

28.16    Sec. 34. Minnesota Statutes 2012, section 18B.316, subdivision 1, is amended to read:
28.17    Subdivision 1. Requirement. (a) A person must not distribute offer for sale or sell
28.18an agricultural pesticide in the state or into the state without first obtaining an agricultural
28.19pesticide dealer license.
28.20(b) Each location or place of business from which an agricultural pesticide is
28.21distributed offered for sale or sold in the state or into the state is required to have a
28.22separate agricultural pesticide dealer license.
28.23(c) A person who is a licensed pesticide dealer under section 18B.31 is not required
28.24to also be licensed under this subdivision.

28.25    Sec. 35. Minnesota Statutes 2012, section 18B.316, subdivision 3, is amended to read:
28.26    Subd. 3. Resident agent. A person required to be licensed under subdivisions 1
28.27and 2, or a person licensed as a pesticide dealer pursuant to section 18B.31 and who
28.28operates from a location or place of business outside the state and who distributes offers
28.29for sale or sells an agricultural pesticide into the state, must continuously maintain in
28.30this state the following:
28.31(1) a registered office; and
28.32(2) a registered agent, who may be either a resident of this state whose business
28.33office or residence is identical with the registered office under clause (1), a domestic
28.34corporation or limited liability company, or a foreign corporation of limited liability
29.1company authorized to transact business in this state and having a business office identical
29.2with the registered office.
29.3A person licensed under this section or section 18B.31 shall annually file with the
29.4commissioner, either at the time of initial licensing or as part of license renewal, the name,
29.5address, telephone number, and e-mail address of the licensee's registered agent.
29.6For licensees under section 18B.31 who are located in the state, the licensee is
29.7the registered agent.

29.8    Sec. 36. Minnesota Statutes 2012, section 18B.316, subdivision 4, is amended to read:
29.9    Subd. 4. Responsibility. The resident agent is responsible for the acts of a licensed
29.10agricultural pesticide dealer, or of a licensed pesticide dealer under section 18B.31 who
29.11operates from a location or place of business outside the state and who distributes offers
29.12for sale or sells an agricultural pesticide into the state, as well as the acts of the employees
29.13of those licensees.

29.14    Sec. 37. Minnesota Statutes 2012, section 18B.316, subdivision 8, is amended to read:
29.15    Subd. 8. Report of sales and payment to commissioner. A person who is an
29.16agricultural pesticide dealer, or is a licensed pesticide dealer under section 18B.31, who
29.17distributes offers for sale or sells an agricultural pesticide in or into the state, and a
29.18pesticide registrant pursuant to section 18B.26, subdivision 3, paragraph (d), shall no
29.19later than January 31 of each year report and pay applicable fees on annual gross sales
29.20of agricultural pesticides to the commissioner pursuant to requirements under section
29.2118B.26, subdivision 3 , paragraphs (c) and (h).

29.22    Sec. 38. Minnesota Statutes 2012, section 18B.316, subdivision 9, is amended to read:
29.23    Subd. 9. Application. (a) A person must apply to the commissioner for an
29.24agricultural pesticide dealer license on forms and in a manner approved by the
29.25commissioner.
29.26(b) The applicant must be the person in charge of each location or place of business
29.27from which agricultural pesticides are distributed offered for sale or sold in or into the state.
29.28(c) The commissioner may require that the applicant provide information regarding
29.29the applicant's proposed operations and other information considered pertinent by the
29.30commissioner.
29.31(d) The commissioner may require additional demonstration of licensee qualification
29.32if the licensee has had a license suspended or revoked, or has otherwise had a history of
29.33violations in another state or violations of this chapter.
30.1(e) A licensed agricultural pesticide dealer who changes the dealer's address or place
30.2of business must immediately notify the commissioner of the change.
30.3(f) Beginning January 1, 2011, an application for renewal of an agricultural pesticide
30.4dealer license is complete only when a report and any applicable payment of fees under
30.5subdivision 8 are received by the commissioner.

30.6    Sec. 39. Minnesota Statutes 2012, section 18B.37, subdivision 4, is amended to read:
30.7    Subd. 4. Storage, handling, Incident response, and disposal plan. A pesticide
30.8dealer, agricultural pesticide dealer, or a commercial, noncommercial, or structural pest
30.9control applicator or the business that the applicator is employed by business must develop
30.10and maintain a an incident response plan that describes its pesticide storage, handling,
30.11incident response, and disposal practices the actions that will be taken to prevent and
30.12respond to pesticide incidents. The plan must contain the same information as forms
30.13provided by the commissioner. The plan must be kept at a principal business site or location
30.14within this state and must be submitted to the commissioner upon request on forms provided
30.15by the commissioner. The plan must be available for inspection by the commissioner.

30.16    Sec. 40. Minnesota Statutes 2012, section 18C.111, subdivision 4, is amended to read:
30.17    Subd. 4. Certification of regulatory compliance. (a) The commissioner may,
30.18under rules adopted under section 18C.121, subdivision 1, certify a person to offer or
30.19perform a regulatory compliance inspection of any person or site that stores, handles, or
30.20distributes ammonia or anhydrous ammonia fertilizer. The deadlines established in section
30.2114.125, are extended until June 30, 2014, for rules adopted under this subdivision.
30.22(b) Pursuant to those rules, a person certified under paragraph (a) may issue a
30.23certification of compliance to an inspected person or site if the certified person documents
30.24in writing full compliance with the provisions of this chapter and rules adopted under
30.25this chapter.
30.26(c) A person or site issued a certification of compliance must provide a copy of the
30.27certification to the commissioner immediately upon request or within 90 days following
30.28certification.
30.29(d) Certifications of compliance are valid for a period of three years. The
30.30commissioner may determine a different time period in the interest of public safety or for
30.31other reasonable cause.

30.32    Sec. 41. Minnesota Statutes 2012, section 18C.430, is amended to read:
30.3318C.430 COMMERCIAL ANIMAL WASTE TECHNICIAN.
31.1    Subdivision 1. Requirement. (a) Except as provided in paragraph (c), after March
31.21, 2000, A person may not manage or apply animal wastes to the land for hire without a
31.3valid commercial animal waste technician license. This section does not apply to a person
31.4managing or applying animal waste on land managed by the person's employer.:
31.5(1) without a valid commercial animal waste technician applicator license;
31.6(2) without a valid commercial animal waste technician site manager license; or
31.7(3) as a sole proprietorship, company, partnership, or corporation unless a
31.8commercial animal waste technician company license is held and a commercial animal
31.9waste technical site manager is employed by the entity.
31.10(b) A person managing or applying animal wastes for hire must have a valid
31.11license identification card when managing or applying animal wastes for hire and must
31.12display it upon demand by an authorized representative of the commissioner or a law
31.13enforcement officer. The commissioner shall prescribe the information required on the
31.14license identification card.
31.15(c) A person who is not a licensed commercial animal waste technician who has had
31.16at least two hours of training or experience in animal waste management may manage
31.17or apply animal waste for hire under the supervision of a commercial animal waste
31.18technician. A commercial animal waste technician applicator must have a minimum of
31.19two hours of certification training in animal waste management and may only manage or
31.20apply animal waste for hire under the supervision of a commercial animal waste technician
31.21site manager. The commissioner shall prescribe the conditions of the supervision and the
31.22form and format required on the certification training.
31.23(d) This section does not apply to a person managing or applying animal waste on
31.24land managed by the person's employer.
31.25    Subd. 2. Responsibility. A person required to be licensed under this section who
31.26performs animal waste management or application for hire or who employs a person to
31.27perform animal waste management or application for compensation is responsible for
31.28proper management or application of the animal wastes.
31.29    Subd. 3. License. (a) A commercial animal waste technician license, including
31.30applicator, site manager, and company:
31.31(1) is valid for three years one year and expires on December 31 of the third year for
31.32which it is issued, unless suspended or revoked before that date;
31.33(2) is not transferable to another person; and
31.34(3) must be prominently displayed to the public in the commercial animal waste
31.35technician's place of business.
32.1(b) The commercial animal waste technician company license number assigned by
32.2the commissioner must appear on the application equipment when a person manages
32.3or applies animal waste for hire.
32.4    Subd. 4. Application. (a) A person must apply to the commissioner for a commercial
32.5animal waste technician license on forms and in the manner required by the commissioner
32.6and must include the application fee. The commissioner shall prescribe and administer
32.7an examination or equivalent measure to determine if the applicant is eligible for the
32.8commercial animal waste technician license, site manager license, or applicator license.
32.9(b) The commissioner of agriculture, in cooperation with the University of
32.10Minnesota Extension Service and appropriate educational institutions, shall establish and
32.11implement a program for training and licensing commercial animal waste technicians.
32.12    Subd. 5. Renewal application. (a) A person must apply to the commissioner of
32.13agriculture to renew a commercial animal waste technician license and must include the
32.14application fee. The commissioner may renew a commercial animal waste technician
32.15applicator or site manager license, subject to reexamination, attendance at workshops
32.16approved by the commissioner, or other requirements imposed by the commissioner to
32.17provide the animal waste technician with information regarding changing technology and
32.18to help ensure a continuing level of competence and ability to manage and apply animal
32.19wastes properly. The applicant may renew a commercial animal waste technician license
32.20within 12 months after expiration of the license without having to meet initial testing
32.21requirements. The commissioner may require additional demonstration of animal waste
32.22technician qualification if a person has had a license suspended or revoked or has had a
32.23history of violations of this section.
32.24(b) An applicant who meets renewal requirements by reexamination instead
32.25of attending workshops must pay a fee for the reexamination as determined by the
32.26commissioner.
32.27    Subd. 6. Financial responsibility. (a) A commercial animal waste technician
32.28license may not be issued unless the applicant furnishes proof of financial responsibility.
32.29The financial responsibility may be demonstrated by (1) proof of net assets equal to or
32.30greater than $50,000, or (2) a performance bond or insurance of the kind and in an amount
32.31determined by the commissioner of agriculture.
32.32(b) The bond or insurance must cover a period of time at least equal to the term of
32.33the applicant's license. The commissioner shall immediately suspend the license of a
32.34person who fails to maintain the required bond or insurance.
32.35(c) An employee of a licensed person is not required to maintain an insurance policy
32.36or bond during the time the employer is maintaining the required insurance or bond.
33.1(d) Applications for reinstatement of a license suspended under paragraph (b) must
33.2be accompanied by proof of satisfaction of judgments previously rendered.
33.3    Subd. 7. Application fee. (a) A person initially applying for or renewing
33.4a commercial animal waste technician applicator license must pay a nonrefundable
33.5application fee of $50 and a fee of $10 for each additional identification card requested.
33.6 $25. A person initially applying for or renewing a commercial animal waste technician
33.7site manager license must pay a nonrefundable application fee of $50. A person initially
33.8applying for or renewing a commercial animal waste technician company license must
33.9pay a nonrefundable application fee of $100.
33.10(b) A license renewal application received after March 1 in the year for which the
33.11license is to be issued is subject to a penalty fee of 50 percent of the application fee. The
33.12penalty fee must be paid before the renewal license may be issued.
33.13(c) An application for a duplicate commercial animal waste technician license must
33.14be accompanied by a nonrefundable fee of $10.

33.15    Sec. 42. Minnesota Statutes 2012, section 18C.433, subdivision 1, is amended to read:
33.16    Subdivision 1. Requirement. Beginning January 1, 2006, only a commercial
33.17animal waste technician, site manager or commercial animal waste technician applicator
33.18 may apply animal waste from a feedlot that:
33.19(1) has a capacity of 300 animal units or more; and
33.20(2) does not have an updated manure management plan that meets the requirements
33.21of Pollution Control Agency rules.

33.22    Sec. 43. Minnesota Statutes 2012, section 31.94, is amended to read:
33.2331.94 COMMISSIONER DUTIES.
33.24(a) In order to promote opportunities for organic agriculture in Minnesota, the
33.25commissioner shall:
33.26(1) survey producers and support services and organizations to determine
33.27information and research needs in the area of organic agriculture practices;
33.28(2) work with the University of Minnesota to demonstrate the on-farm applicability
33.29of organic agriculture practices to conditions in this state;
33.30(3) direct the programs of the department so as to work toward the promotion of
33.31organic agriculture in this state;
33.32(4) inform agencies of how state or federal programs could utilize and support
33.33organic agriculture practices; and
34.1(5) work closely with producers, the University of Minnesota, the Minnesota Trade
34.2Office, and other appropriate organizations to identify opportunities and needs as well
34.3as ensure coordination and avoid duplication of state agency efforts regarding research,
34.4teaching, marketing, and extension work relating to organic agriculture.
34.5(b) By November 15 of each year that ends in a zero or a five, the commissioner,
34.6in conjunction with the task force created in paragraph (c), shall report on the status of
34.7organic agriculture in Minnesota to the legislative policy and finance committees and
34.8divisions with jurisdiction over agriculture. The report must include available data on
34.9organic acreage and production, available data on the sales or market performance of
34.10organic products, and recommendations regarding programs, policies, and research efforts
34.11that will benefit Minnesota's organic agriculture sector.
34.12(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the
34.13University of Minnesota on policies and programs that will improve organic agriculture in
34.14Minnesota, including how available resources can most effectively be used for outreach,
34.15education, research, and technical assistance that meet the needs of the organic agriculture
34.16community. The task force must consist of the following residents of the state:
34.17(1) three organic farmers using organic agriculture methods;
34.18(2) one wholesaler or distributor of organic products;
34.19(3) one representative of organic certification agencies;
34.20(4) two organic processors;
34.21(5) one representative from University of Minnesota Extension;
34.22(6) one University of Minnesota faculty member;
34.23(7) one representative from a nonprofit organization representing producers;
34.24(8) two public members;
34.25(9) one representative from the United States Department of Agriculture;
34.26(10) one retailer of organic products; and
34.27(11) one organic consumer representative.
34.28The commissioner, in consultation with the director of the Minnesota Agricultural
34.29Experiment Station; the dean and director of University of Minnesota Extension; and the
34.30dean of the College of Food, Agricultural and Natural Resource Sciences, shall appoint
34.31members to serve staggered two-year three-year terms.
34.32Compensation and removal of members are governed by section 15.059, subdivision
34.336
. The task force must meet at least twice each year and expires on June 30, 2013 2016.
34.34(d) For the purposes of expanding, improving, and developing production and
34.35marketing of the organic products of Minnesota agriculture, the commissioner may
34.36receive funds from state and federal sources and spend them, including through grants or
35.1contracts, to assist producers and processors to achieve certification, to conduct education
35.2or marketing activities, to enter into research and development partnerships, or to address
35.3production or marketing obstacles to the growth and well-being of the industry.
35.4(e) The commissioner may facilitate the registration of state organic production
35.5and handling operations including those exempt from organic certification according to
35.6Code of Federal Regulations, title 7, section 205.101, and certification agents operating
35.7within the state.

35.8    Sec. 44. Minnesota Statutes 2012, section 41A.10, subdivision 2, is amended to read:
35.9    Subd. 2. Cellulosic biofuel production goal. The state cellulosic biofuel production
35.10goal is one-quarter of the total amount necessary for ethanol biofuel use required under
35.11section 239.791, subdivision 1a 1, by 2015 or when cellulosic biofuel facilities in the state
35.12attain a total annual production level of 60,000,000 gallons, whichever is first.

35.13    Sec. 45. Minnesota Statutes 2012, section 41A.10, is amended by adding a subdivision
35.14to read:
35.15    Subd. 3. Expiration. This section expires January 1, 2015.

35.16    Sec. 46. Minnesota Statutes 2012, section 41A.105, subdivision 1a, is amended to read:
35.17    Subd. 1a. Definitions. For the purpose of this section:
35.18    (1) "biobased content" means a chemical, polymer, monomer, or plastic that is not
35.19sold primarily for use as food, feed, or fuel and that has a biobased percentage of at least
35.2051 percent as determined by testing representative samples using American Society for
35.21Testing and Materials specification D6866;
35.22    (2) "biobased formulated product" means a product that is not sold primarily for use
35.23as food, feed, or fuel and that has a biobased content percentage of at least ten percent
35.24as determined by testing representative samples using American Society for Testing
35.25and Materials specification D6866, or that contains a biobased chemical constituent
35.26that displaces a known hazardous or toxic constituent previously used in the product
35.27formulation;
35.28    (1) (3) "biobutanol facility" means a facility at which biobutanol is produced; and
35.29    (2) (4) "biobutanol" means fermentation isobutyl alcohol that is derived from
35.30agricultural products, including potatoes, cereal grains, cheese whey, and sugar beets;
35.31forest products; or other renewable resources, including residue and waste generated
35.32from the production, processing, and marketing of agricultural products, forest products,
35.33and other renewable resources.

36.1    Sec. 47. Minnesota Statutes 2012, section 41A.105, subdivision 3, is amended to read:
36.2    Subd. 3. Duties. The board shall research and report to the commissioner of
36.3agriculture and to the legislature recommendations as to how the state can invest its
36.4resources to most efficiently achieve energy independence, agricultural and natural
36.5resources sustainability, and rural economic vitality. The board shall:
36.6    (1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen,
36.7methanol, biodiesel, and ethanol within Minnesota;
36.8    (2) examine the opportunity for biobased content and biobased formulated product
36.9production at integrated biorefineries or stand alone facilities using agricultural and
36.10forestry feedstocks;
36.11    (2) (3) develop equity grant programs to assist locally owned facilities;
36.12    (3) (4) study the proper role of the state in creating financing and investing and
36.13providing incentives;
36.14    (4) (5) evaluate how state and federal programs, including the Farm Bill, can best
36.15work together and leverage resources;
36.16    (5) (6) work with other entities and committees to develop a clean energy program;
36.17and
36.18    (6) (7) report to the legislature before February 1 each year with recommendations
36.19as to appropriations and results of past actions and projects.

36.20    Sec. 48. Minnesota Statutes 2012, section 41A.105, subdivision 5, is amended to read:
36.21    Subd. 5. Expiration. This section expires June 30, 2014 2015.

36.22    Sec. 49. Minnesota Statutes 2012, section 41A.12, subdivision 3, is amended to read:
36.23    Subd. 3. Oversight. The commissioner, in consultation with the chairs and ranking
36.24minority members of the house of representatives and senate committees with jurisdiction
36.25over agriculture finance, must allocate available funds among eligible uses, develop
36.26competitive eligibility criteria, and award funds on a needs basis. By February 1 each
36.27year, the commissioner shall report to the legislature on the allocation among eligible uses
36.28and any financial assistance provided under this section.

36.29    Sec. 50. Minnesota Statutes 2012, section 41A.12, is amended by adding a subdivision
36.30to read:
36.31    Subd. 3a. Grant awards. Grant projects may continue for up to three years.
36.32Multiyear projects must be reevaluated by the commissioner before second- and third-year
36.33funding is approved. A project is limited to one grant for its funding.

37.1    Sec. 51. Minnesota Statutes 2012, section 41B.04, subdivision 9, is amended to read:
37.2    Subd. 9. Restructured loan agreement. (a) For a deferred restructured loan, all
37.3payments on the primary and secondary principal, all payments of interest on the secondary
37.4principal, and an agreed portion of the interest payable to the eligible agricultural lender
37.5on the primary principal must be deferred to the end of the term of the loan.
37.6(b) Interest on secondary principal must accrue at a below market interest rate.
37.7(c) At the conclusion of the term of the restructured loan, the borrower owes primary
37.8principal, secondary principal, and deferred interest on primary and secondary principal.
37.9However, part of this balloon payment may be forgiven following an appraisal by the
37.10lender and the authority to determine the current market value of the real estate subject to
37.11the mortgage. If the current market value of the land after appraisal is less than the amount
37.12of debt owed by the borrower to the lender and authority on this obligation, that portion of
37.13the obligation that exceeds the current market value of the real property must be forgiven
37.14by the lender and the authority in the following order:
37.15(1) deferred interest on secondary principal;
37.16(2) secondary principal;
37.17(3) deferred interest on primary principal;
37.18(4) primary principal as provided in an agreement between the authority and the
37.19lender; and
37.20(5) accrued but not deferred interest on primary principal.
37.21(d) For an amortized restructured loan, payments must include installments on
37.22primary principal and interest on the primary principal. An amortized restructured loan
37.23must be amortized over a time period and upon terms to be established by the authority by
37.24rule.
37.25(e) A borrower may prepay the restructured loan, with all primary and secondary
37.26principal and interest and deferred interest at any time without prepayment penalty.
37.27(f) The authority may not participate in refinancing a restructured loan at the
37.28conclusion of the restructured loan.

37.29    Sec. 52. Minnesota Statutes 2012, section 41D.01, subdivision 4, is amended to read:
37.30    Subd. 4. Expiration. This section expires on June 30, 2013 2018.

37.31    Sec. 53. Minnesota Statutes 2012, section 116J.437, subdivision 1, is amended to read:
37.32    Subdivision 1. Definitions. (a) For the purpose of this section, the following terms
37.33have the meanings given.
38.1    (b) "Green economy" means products, processes, methods, technologies, or services
38.2intended to do one or more of the following:
38.3    (1) increase the use of energy from renewable sources, including through achieving
38.4the renewable energy standard established in section 216B.1691;
38.5    (2) achieve the statewide energy-savings goal established in section 216B.2401,
38.6including energy savings achieved by the conservation investment program under section
38.7216B.241 ;
38.8    (3) achieve the greenhouse gas emission reduction goals of section 216H.02,
38.9subdivision 1, including through reduction of greenhouse gas emissions, as defined in
38.10section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through,
38.11but not limited to, carbon capture, storage, or sequestration;
38.12    (4) monitor, protect, restore, and preserve the quality of surface waters, including
38.13actions to further the purposes of the Clean Water Legacy Act as provided in section
38.14114D.10, subdivision 1 ;
38.15    (5) expand the use of biofuels, including by expanding the feasibility or reducing the
38.16cost of producing biofuels or the types of equipment, machinery, and vehicles that can
38.17use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections
38.1841A.10, subdivision 2, and 41A.11 petroleum replacement goal in section 239.7911; or
38.19    (6) increase the use of green chemistry, as defined in section 116.9401.
38.20For the purpose of clause (3), "green economy" includes strategies that reduce carbon
38.21emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass
38.22transit or otherwise reducing commuting for employees.

38.23    Sec. 54. Minnesota Statutes 2012, section 223.17, is amended by adding a subdivision
38.24to read:
38.25    Subd. 7a. Bond requirements; claims. For entities licensed under this chapter
38.26and chapter 232, the bond requirements and claims against the bond are governed under
38.27section 232.22, subdivision 6a.

38.28    Sec. 55. Minnesota Statutes 2012, section 232.22, is amended by adding a subdivision
38.29to read:
38.30    Subd. 6a. Bond determinations. If a public grain warehouse operator is licensed
38.31under both this chapter and chapter 223, the warehouse shall have its bond determined
38.32by its gross annual grain purchase amount or its annual average grain storage value,
38.33whichever is greater. For those entities licensed under this chapter and chapter 223, the
39.1entire bond shall be available to any claims against the bond for claims filed under this
39.2chapter and chapter 223.

39.3    Sec. 56. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
39.4to read:
39.5    Subd. 1a. Advanced biofuel. "Advanced biofuel" has the meaning given in Public
39.6Law 110-140, title 2, subtitle A, section 201.

39.7    Sec. 57. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
39.8to read:
39.9    Subd. 5a. Biofuel. "Biofuel" means a renewable fuel with an approved pathway
39.10under authority of the federal Energy Policy Act of 2005, Public Law 109-58, as amended
39.11by the federal Energy Independence and Security Act of 2007, Public Law 110–140,
39.12and approved for sale by the United States Environmental Protection Agency. The term
39.13"biofuel" includes both advanced and conventional biofuels.

39.14    Sec. 58. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
39.15to read:
39.16    Subd. 7a. Conventional biofuel. "Conventional biofuel" means ethanol derived
39.17from cornstarch, as defined in Public Law 110-140, title 2, subtitle A, section 201.

39.18    Sec. 59. Minnesota Statutes 2012, section 239.761, subdivision 3, is amended to read:
39.19    Subd. 3. Gasoline. (a) Gasoline that is not blended with ethanol biofuel must not be
39.20contaminated with water or other impurities and must comply with ASTM specification
39.21D4814-08b. Gasoline that is not blended with ethanol biofuel must also comply with the
39.22volatility requirements in Code of Federal Regulations, title 40, part 80.
39.23(b) After gasoline is sold, transferred, or otherwise removed from a refinery or
39.24terminal, a person responsible for the product:
39.25(1) may blend the gasoline with agriculturally derived ethanol as provided in
39.26subdivision 4;
39.27(2) shall not blend the gasoline with any oxygenate other than denatured,
39.28agriculturally derived ethanol biofuel;
39.29(3) shall not blend the gasoline with other petroleum products that are not gasoline
39.30or denatured, agriculturally derived ethanol biofuel;
40.1(4) shall not blend the gasoline with products commonly and commercially known
40.2as casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or
40.3natural gasoline; and
40.4(5) may blend the gasoline with a detergent additive, an antiknock additive, or an
40.5additive designed to replace tetra-ethyl lead, that is registered by the EPA.

40.6    Sec. 60. Minnesota Statutes 2012, section 239.791, subdivision 1, is amended to read:
40.7    Subdivision 1. Minimum ethanol biofuel content required. (a) Except as provided
40.8in subdivisions 10 to 14, a person responsible for the product shall ensure that all gasoline
40.9sold or offered for sale in Minnesota must contain at least the quantity of ethanol biofuel
40.10 required by clause (1) or (2), whichever is greater at the option of the person responsible
40.11for the product:
40.12(1) the greater of:
40.13(i) 10.0 percent denatured ethanol conventional biofuel by volume; or
40.14(2) (ii) the maximum percent of denatured ethanol conventional biofuel by volume
40.15authorized in a waiver granted by the United States Environmental Protection Agency; or
40.16(2) 10.0 percent of a biofuel, other than a conventional biofuel, by volume authorized
40.17in a waiver granted by the United States Environmental Protection Agency or a biofuel
40.18formulation registered by the United States Environmental Protection Agency under
40.19United States Code, title 42, section 7545.
40.20(b) For purposes of enforcing the minimum ethanol requirement of paragraph (a),
40.21clause (1), item (i), a gasoline/ethanol gasoline/biofuel blend will be construed to be in
40.22compliance if the ethanol biofuel content, exclusive of denaturants and other permitted
40.23components, comprises not less than 9.2 percent by volume and not more than 10.0 percent
40.24by volume of the blend as determined by an appropriate United States Environmental
40.25Protection Agency or American Society of Testing Materials standard method of analysis
40.26of alcohol/ether content in engine fuels.
40.27(c) The provisions of this subdivision are suspended during any period of time that
40.28subdivision 1a, paragraph (a), is in effect. The aggregate amount of biofuel blended
40.29pursuant to this subdivision may be any biofuel; however, conventional biofuel must
40.30comprise no less than the portion specified on and after the specified dates:
40.31
(1)
July 1, 2013
90 percent
40.32
(2)
January 1, 2015
80 percent
40.33
(3)
January 1, 2017
70 percent
40.34
(4)
January 1, 2020
60 percent
40.35
(5)
January 1, 2025
no minimum

41.1    Sec. 61. Minnesota Statutes 2012, section 239.791, subdivision 2a, is amended to read:
41.2    Subd. 2a. Federal Clean Air Act waivers; conditions. (a) Before a waiver granted
41.3by the United States Environmental Protection Agency under section 211(f)(4) of the
41.4Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4),
41.5 may alter the minimum content level required by subdivision 1, paragraph (a), clause (2),
41.6or subdivision 1a, paragraph (a), clause (2) (1), item (ii), the waiver must:
41.7(1) apply to all gasoline-powered motor vehicles irrespective of model year; and
41.8(2) allow for special regulatory treatment of Reid vapor pressure under Code of
41.9Federal Regulations, title 40, section 80.27, paragraph (d), for blends of gasoline and
41.10ethanol up to the maximum percent of denatured ethanol by volume authorized under
41.11the waiver.
41.12(b) The minimum ethanol biofuel requirement in subdivision 1, paragraph (a), clause
41.13(2), or subdivision 1a, paragraph (a), clause (2), (1), item (ii), shall, upon the grant of the
41.14federal waiver, be effective the day after the commissioner of commerce publishes notice
41.15in the State Register. In making this determination, the commissioner shall consider the
41.16amount of time required by refiners, retailers, pipeline and distribution terminal companies,
41.17and other fuel suppliers, acting expeditiously, to make the operational and logistical changes
41.18required to supply fuel in compliance with the minimum ethanol biofuel requirement.

41.19    Sec. 62. Minnesota Statutes 2012, section 239.791, subdivision 2b, is amended to read:
41.20    Subd. 2b. Limited liability waiver. No motor fuel shall be deemed to be a defective
41.21product by virtue of the fact that the motor fuel is formulated or blended pursuant to
41.22the requirements of subdivision 1, paragraph (a), clause (2), or subdivision 1a (1), item
41.23(ii), under any theory of liability except for simple or willful negligence or fraud. This
41.24subdivision does not preclude an action for negligent, fraudulent, or willful acts. This
41.25subdivision does not affect a person whose liability arises under chapter 115, water
41.26pollution control; 115A, waste management; 115B, environmental response and liability;
41.27115C, leaking underground storage tanks; or 299J, pipeline safety; under public nuisance
41.28law for damage to the environment or the public health; under any other environmental or
41.29public health law; or under any environmental or public health ordinance or program of a
41.30municipality as defined in section 466.01.

41.31    Sec. 63. Minnesota Statutes 2012, section 239.7911, is amended to read:
41.32239.7911 PETROLEUM REPLACEMENT PROMOTION.
42.1    Subdivision 1. Petroleum replacement goal. The tiered petroleum replacement
42.2goal of the state of Minnesota is that biofuel comprises at least the specified portion of
42.3total gasoline sold or offered for sale in this state by each specified year:
42.4    (1) at least 20 percent of the liquid fuel sold in the state is derived from renewable
42.5sources by December 31, 2015; and
42.6    (2) at least 25 percent of the liquid fuel sold in the state is derived from renewable
42.7sources by December 31, 2025.
42.8
(1)
2015
14 percent
42.9
(2)
2017
18 percent
42.10
(3)
2020
25 percent
42.11
(4)
2025
30 percent
42.12    Subd. 2. Promotion of renewable liquid fuels. (a) The commissioner of agriculture,
42.13in consultation with the commissioners of commerce and the Pollution Control Agency,
42.14shall identify and implement activities necessary for the widespread use of renewable
42.15liquid fuels in the state to achieve the goals in subdivision 1. Beginning November
42.161, 2005, and continuing through 2015, the commissioners, or their designees, shall
42.17work with convene a task force pursuant to section 15.014 that includes representatives
42.18from the renewable fuels industry, petroleum retailers, refiners, automakers, small
42.19engine manufacturers, and other interested groups, to. The task force shall assist the
42.20commissioners in carrying out the activities in paragraph (b) and eliminating barriers to the
42.21use of greater biofuel blends in this state. The task force must coordinate efforts with the
42.22NextGen Energy Board, the biodiesel task force, and the Renewable Energy Roundtable
42.23and develop annual recommendations for administrative and legislative action.
42.24    (b) The activities of the commissioners under this subdivision shall include, but not
42.25be limited to:
42.26    (1) developing recommendations for specific, cost-effective incentives necessary
42.27to expedite the use of greater biofuel blends in this state including, but not limited to,
42.28incentives for retailers to install equipment necessary for dispensing to dispense renewable
42.29liquid fuels to the public;
42.30    (2) expanding the renewable-fuel options available to Minnesota consumers by
42.31obtaining federal approval for the use of E20 and additional blends that contain a greater
42.32percentage of ethanol, including but not limited to E30 and E50, as gasoline biofuel;
42.33    (3) developing recommendations for ensuring to ensure that motor vehicles and
42.34small engine equipment have access to an adequate supply of fuel;
42.35    (4) working with the owners and operators of large corporate automotive fleets in the
42.36state to increase their use of renewable fuels; and
43.1    (5) working to maintain an affordable retail price for liquid fuels;
43.2    (6) facilitating the production and use of advanced biofuels in this state; and
43.3    (7) developing procedures for reporting the amount and type of biofuel under
43.4subdivision 1 and section 239.791, subdivision 1, paragraph (c).
43.5    (c) Notwithstanding section 15.014, the task force required under paragraph (a)
43.6expires on December 31, 2015.

43.7    Sec. 64. Minnesota Statutes 2012, section 296A.01, is amended by adding a
43.8subdivision to read:
43.9    Subd. 8b. Biobutanol. "Biobutanol" means isobutyl alcohol produced by
43.10fermenting agriculturally generated organic material that is to be blended with gasoline
43.11and meets either:
43.12    (1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline
43.13for Use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM
43.14for general distribution; or
43.15    (2) in the absence of an ASTM standard specification, the following list of
43.16requirements:
43.17    (i) visually free of sediment and suspended matter;
43.18    (ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient
43.19temperature, whichever is higher;
43.20    (iii) free of any adulterant or contaminant that can render it unacceptable for its
43.21commonly used applications;
43.22    (iv) contains not less than 96 volume percent isobutyl alcohol;
43.23    (v) contains not more than 0.4 volume percent methanol;
43.24    (vi) contains not more than 1.0 volume percent water as determined by ASTM
43.25standard test method E203 or E1064;
43.26    (vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined
43.27by ASTM standard test method D1613;
43.28    (viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters
43.29as determined by ASTM standard test method D381;
43.30    (ix) sulfur content of not more than 30 parts per million as determined by ASTM
43.31standard test method D2622 or D5453; and
43.32    (x) contains not more than four parts per million total inorganic sulfate.

43.33    Sec. 65. Minnesota Statutes 2012, section 583.215, is amended to read:
43.34583.215 EXPIRATION.
44.1 Sections 336.9-601, subsections (h) and (i); 550.365; 559.209; 582.039; and 583.20
44.2to 583.32, expire June 30, 2013 2016.
44.3EFFECTIVE DATE.This section is effective the day following final enactment.

44.4    Sec. 66. WASTE PESTICIDE REPORTING; 2013, 2014, AND 2015.
44.5Notwithstanding the recording and reporting requirements of Minnesota Statutes,
44.6section 18B.065, subdivision 2a, paragraph (d), persons are not required to record or
44.7report agricultural or nonagricultural waste pesticide collected after the effective date of
44.8this section in 2013, 2014, and 2015. The commissioner of agriculture shall analyze
44.9existing collection data to identify trends that will inform future collection strategies to
44.10better meet the needs and nature of current waste pesticide streams. By January 15, 2015,
44.11the commissioner shall report analysis, recommendations, and proposed policy changes
44.12to this program to legislative committees and divisions with jurisdiction over agriculture
44.13finance and policy.
44.14EFFECTIVE DATE.This section is effective the day following final enactment.

44.15    Sec. 67. POLLINATOR REPORT REQUIRED.
44.16No later than January 15, 2014, the commissioner of agriculture must submit
44.17a pollinator report to the legislative committees and divisions with jurisdiction over
44.18agriculture and natural resources. The commissioner of agriculture must develop the
44.19report in consultation with the commissioners of natural resources and the Pollution
44.20Control Agency, the Board of Water and Soil Resources, and representatives of the
44.21University of Minnesota. The report must include, but is not limited to, the following:
44.22(1) a proposal to establish a pollinator bank to preserve pollinator species diversity;
44.23(2) a proposal to efficiently and effectively create and enhance pollinator nesting and
44.24foraging habitat in this state including establishment of pollinator reserves or refuges; and
44.25(3) the process and criteria the commissioner of agriculture would use to perform a
44.26special review of neonicotinoid pesticides registered by the commissioner for use in this
44.27state currently and in the future.

44.28    Sec. 68. REVISOR'S INSTRUCTION.
44.29The revisor of statutes shall renumber Minnesota Statutes, section 18B.01,
44.30subdivision 4a, as subdivision 4b and correct any cross-references.

44.31    Sec. 69. REPEALER.
45.1Minnesota Statutes 2012, sections 18.91, subdivisions 3 and 5; 18B.07, subdivision
45.26; and 239.791, subdivision 1a, are repealed.

45.3ARTICLE 3
45.4ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS

45.5
Section 1. SUMMARY OF APPROPRIATIONS.
45.6    The amounts shown in this section summarize direct appropriations, by fund, made
45.7in this article.
45.8
2014
2015
Total
45.9
General
$
87,641,000
$
92,690,000
$
180,331,000
45.10
45.11
State Government Special
Revenue
75,000
75,000
150,000
45.12
Environmental
68,836,000
68,982,000
137,818,000
45.13
Natural Resources
89,906,000
89,606,000
179,512,000
45.14
Game and Fish
91,372,000
91,372,000
182,744,000
45.15
Remediation
10,596,000
10,596,000
21,192,000
45.16
Permanent School
200,000
200,000
400,000
45.17
Total
$
348,626,000
$
353,521,000
$
702,147,000

45.18
Sec. 2. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.
45.19    The sums shown in the columns marked "Appropriations" are appropriated to the
45.20agencies and for the purposes specified in this article. The appropriations are from the
45.21general fund, or another named fund, and are available for the fiscal years indicated
45.22for each purpose. The figures "2014" and "2015" used in this article mean that the
45.23appropriations listed under them are available for the fiscal year ending June 30, 2014, or
45.24June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
45.25year 2015. "The biennium" is fiscal years 2014 and 2015. Appropriations for the fiscal
45.26year ending June 30, 2013, are effective the day following final enactment.
45.27
APPROPRIATIONS
45.28
Available for the Year
45.29
Ending June 30
45.30
2014
2015

45.31
Sec. 3. POLLUTION CONTROL AGENCY
45.32
Subdivision 1.Total Appropriation
$
84,171,000
$
84,316,000
45.33
Appropriations by Fund
45.34
2014
2015
45.35
General
4,764,000
4,763,000
46.1
46.2
State Government
Special Revenue
75,000
75,000
46.3
Environmental
68,836,000
68,982,000
46.4
Remediation
10,496,000
10,496,000
46.5The amounts that may be spent for each
46.6purpose are specified in the following
46.7subdivisions.
46.8
Subd. 2.Water
25,453,000
25,454,000
46.9
Appropriations by Fund
46.10
General
3,737,000
3,737,000
46.11
46.12
State Government
Special Revenue
75,000
75,000
46.13
Environmental
21,641,000
21,642,000
46.14$1,959,000 the first year and $1,959,000
46.15the second year are for grants to delegated
46.16counties to administer the county feedlot
46.17program under Minnesota Statutes, section
46.18116.0711, subdivisions 2 and 3. By January
46.1915, 2016, the commissioner shall submit a
46.20report detailing the results achieved with
46.21this appropriation to the chairs and ranking
46.22minority members at the senate and house
46.23of representatives committees and divisions
46.24with jurisdiction over environment and
46.25natural resources policy and finance. Money
46.26remaining after the first year is available for
46.27the second year.
46.28$740,000 the first year and $740,000 the
46.29second year are from the environmental
46.30fund to address the need for continued
46.31increased activity in the areas of new
46.32technology review, technical assistance
46.33for local governments, and enforcement
46.34under Minnesota Statutes, sections 115.55
46.35to 115.58, and to complete the requirements
47.1of Laws 2003, chapter 128, article 1, section
47.2165.
47.3$400,000 the first year and $400,000
47.4the second year are for the clean water
47.5partnership program. Any unexpended
47.6balance in the first year does not cancel but
47.7is available in the second year. Priority shall
47.8be given to projects preventing impairments
47.9and degradation of lakes, rivers, streams,
47.10and groundwater according to Minnesota
47.11Statutes, section 114D.20, subdivision 2,
47.12clause (4).
47.13$664,000 the first year and $664,000 the
47.14second year are from the environmental
47.15fund for subsurface sewage treatment
47.16system (SSTS) program administration
47.17and community technical assistance and
47.18education, including grants and technical
47.19assistance to communities for water quality
47.20protection. Of this amount, $129,000 each
47.21year is for assistance to counties through
47.22grants for SSTS program administration.
47.23A county receiving a grant from this
47.24appropriation shall submit the results
47.25achieved with the grant to the commissioner
47.26as part of its annual SSTS report. Any
47.27unexpended balance in the first year does not
47.28cancel but is available in the second year.
47.29$105,000 the first year and $105,000 the
47.30second year are from the environmental fund
47.31for registration of wastewater laboratories.
47.32$913,000 the first year and $913,000 the
47.33second year are from the environmental fund
47.34to continue perfluorochemical biomonitoring
47.35in eastern metropolitan communities, as
48.1recommended by the Environmental Health
48.2Tracking and Biomonitoring Advisory Panel,
48.3and address other environmental health
48.4risks, including air quality. Of this amount,
48.5$812,000 the first year and $812,000 the
48.6second year are for transfer to the Department
48.7of Health.
48.8Notwithstanding Minnesota Statutes, section
48.916A.28, the appropriations encumbered on or
48.10before June 30, 2015, as grants or contracts
48.11for SSTS's, surface water and groundwater
48.12assessments, total maximum daily loads,
48.13storm water, and water quality protection in
48.14this subdivision are available until June 30,
48.152018.
48.16
Subd. 3.Air
15,031,000
15,201,000
48.17
Appropriations by Fund
48.18
Environmental
15,031,000
15,201,000
48.19$200,000 the first year and $200,000 the
48.20second year are from the environmental fund
48.21for a monitoring program under Minnesota
48.22Statutes, section 116.454.
48.23Up to $150,000 the first year and $150,000
48.24the second year may be transferred from the
48.25environmental fund to the small business
48.26environmental improvement loan account
48.27established in Minnesota Statutes, section
48.28116.993.
48.29$125,000 the first year and $125,000 the
48.30second year are from the environmental fund
48.31for monitoring ambient air for hazardous
48.32pollutants in the metropolitan area.
48.33$210,000 the first year and $210,000 the
48.34second year are from the environmental fund
49.1for systematic, localized monitoring efforts
49.2in the state that:
49.3(1) sample ambient air for a period of one to
49.4three months at various sites;
49.5(2) analyze the samples and compare the data
49.6to the agency's fixed air monitoring sites; and
49.7(3) determine whether significant localized
49.8differences exist.
49.9The commissioner, when selecting areas to
49.10monitor, shall give priority to areas where low
49.11income, indigenous American Indians, and
49.12communities of color are disproportionately
49.13impacted by pollution from highway traffic,
49.14air traffic, and industrial sources to assist
49.15with efforts to ensure environmental justice
49.16for those areas. For the purposes of this
49.17paragraph, "environmental justice" means the
49.18fair treatment of people of all races, cultures,
49.19and income levels in the development,
49.20adoption, implementation, and enforcement
49.21of environmental laws and policies.
49.22$690,000 the first year and $690,000 the
49.23second year are from the environmental
49.24fund for emission reduction activities and
49.25grants to small businesses and other nonpoint
49.26emission reduction efforts. Any unexpended
49.27balance in the first year does not cancel but is
49.28available in the second year.
49.29
Subd. 4.Land
17,412,000
17,412,000
49.30
Appropriations by Fund
49.31
Environmental
6,916,000
6,916,000
49.32
Remediation
10,496,000
10,496,000
49.33All money for environmental response,
49.34compensation, and compliance in the
50.1remediation fund not otherwise appropriated
50.2is appropriated to the commissioners of the
50.3Pollution Control Agency and agriculture
50.4for purposes of Minnesota Statutes, section
50.5115B.20, subdivision 2, clauses (1), (2),
50.6(3), (6), and (7). At the beginning of each
50.7fiscal year, the two commissioners shall
50.8jointly submit an annual spending plan
50.9to the commissioner of management and
50.10budget that maximizes the utilization of
50.11resources and appropriately allocates the
50.12money between the two departments. This
50.13appropriation is available until June 30, 2015.
50.14$3,616,000 the first year and $3,616,000 the
50.15second year are from the remediation fund for
50.16purposes of the leaking underground storage
50.17tank program to protect the land. These same
50.18annual amounts are transferred from the
50.19petroleum tank fund to the remediation fund.
50.20$252,000 the first year and $252,000 the
50.21second year are from the remediation fund
50.22for transfer to the commissioner of health for
50.23private water supply monitoring and health
50.24assessment costs in areas contaminated
50.25by unpermitted mixed municipal solid
50.26waste disposal facilities and drinking water
50.27advisories and public information activities
50.28for areas contaminated by hazardous releases.
50.29
50.30
Subd. 5.Environmental Assistance and
Cross-Media
26,275,000
26,249,000
50.31
Appropriations by Fund
50.32
Environmental
25,248,000
25,223,000
50.33
General
1,027,000
1,026,000
50.34$14,250,000 the first year and $14,250,000
50.35the second year are from the environmental
50.36fund for SCORE block grants to counties.
51.1$119,000 the first year and $119,000 the
51.2second year are from the environmental
51.3fund for environmental assistance grants
51.4or loans under Minnesota Statutes, section
51.5115A.0716. Any unencumbered grant and
51.6loan balances in the first year do not cancel
51.7but are available for grants and loans in the
51.8second year.
51.9$89,000 the first year and $89,000 the
51.10second year are from the environmental fund
51.11for duties related to harmful chemicals in
51.12products under Minnesota Statutes, sections
51.13116.9401 to 116.9407. Of this amount,
51.14$57,000 each year is transferred to the
51.15commissioner of health.
51.16$200,000 the first year and $200,000 the
51.17second year are from the environmental
51.18fund for the costs of implementing general
51.19operating permits for feedlots over 1,000
51.20animal units.
51.21$312,000 the first year and $312,000 the
51.22second year are from the general fund and
51.23$188,000 the first year and $188,000 the
51.24second year are from the environmental fund
51.25for Environmental Quality Board operations
51.26and support.
51.27$75,000 the first year and $50,000 the second
51.28year are from the environmental fund for
51.29transfer to the Office of Administrative
51.30Hearings to establish sanitary districts.
51.31$500,000 the first year and $500,000 the
51.32second year are from the general fund for
51.33the Environmental Quality Board to lead
51.34an interagency team to provide technical
51.35assistance regarding the mining, processing,
52.1and transporting of silica sand and develop
52.2the model standards and criteria required
52.3under Minnesota Statutes, section 116C.99.
52.4The agency may transfer a portion of this
52.5appropriation to the commissioners of natural
52.6resources, health, and transportation and to
52.7the Board of Water and Soil Resources for
52.8additional costs of duties related to silica
52.9sand mining in this act.
52.10The commissioner shall prepare and submit
52.11a report to the chairs and ranking minority
52.12members of the senate and house of
52.13representatives committees and divisions
52.14with jurisdiction over the environment and
52.15natural resources by January 15, 2014, with
52.16recommendations for a statewide recycling
52.17refund program for beverage containers that
52.18achieves an 80 percent recycling rate. In
52.19preparing the report, the commissioner shall
52.20consult with stakeholders, including retailers,
52.21collectors, recyclers, local governments, and
52.22consumers on options to increase the current
52.23recycling rate. An assessment of the financial
52.24impact of any recommended program shall
52.25be included in the report.
52.26All money deposited in the environmental
52.27fund for the metropolitan solid waste
52.28landfill fee in accordance with Minnesota
52.29Statutes, section 473.843, and not otherwise
52.30appropriated, is appropriated for the purposes
52.31of Minnesota Statutes, section 473.844.
52.32$315,000 the first year and $315,000 the
52.33second year are from the environmental
52.34fund for the electronic waste program under
53.1Minnesota Statutes, sections 115A.1310 to
53.2115A.1330.
53.3Notwithstanding Minnesota Statutes, section
53.416A.28, the appropriations encumbered on
53.5or before June 30, 2015, as contracts or
53.6grants for surface water and groundwater
53.7assessments; environmental assistance
53.8awarded under Minnesota Statutes, section
53.9115A.0716; technical and research assistance
53.10under Minnesota Statutes, section 115A.152;
53.11technical assistance under Minnesota
53.12Statutes, section 115A.52; and pollution
53.13prevention assistance under Minnesota
53.14Statutes, section 115D.04, are available until
53.15June 30, 2017.
53.16
Subd. 6.Remediation Fund
53.17The commissioner shall transfer up to
53.18$46,000,000 from the environmental fund to
53.19the remediation fund for the purposes of the
53.20remediation fund under Minnesota Statutes,
53.21section 116.155, subdivision 2.

53.22
Sec. 4. NATURAL RESOURCES
53.23
Subdivision 1.Total Appropriation
$
236,744,000
$
241,494,000
53.24
Appropriations by Fund
53.25
2014
2015
53.26
General
61,486,000
66,536,000
53.27
Natural Resources
83,586,000
83,286,000
53.28
Game and Fish
91,372,000
91,372,000
53.29
Remediation
100,000
100,000
53.30
Permanent School
200,000
200,000
53.31The amounts that may be spent for each
53.32purpose are specified in the following
53.33subdivisions.
53.34
53.35
Subd. 2.Land and Mineral Resources
Management
6,287,000
6,687,000
54.1
Appropriations by Fund
54.2
General
1,164,000
1,564,000
54.3
Natural Resources
3,472,000
3,472,000
54.4
Game and Fish
1,451,000
1,451,000
54.5
Permanent School
200,000
200,000
54.6$68,000 the first year and $68,000 the
54.7second year are for minerals cooperative
54.8environmental research, of which $34,000
54.9the first year and $34,000 the second year are
54.10available only as matched by $1 of nonstate
54.11money for each $1 of state money. The
54.12match may be cash or in-kind.
54.13$251,000 the first year and $251,000 the
54.14second year are for iron ore cooperative
54.15research. Of this amount, $200,000 each year
54.16is from the minerals management account
54.17in the natural resources fund. $175,000 the
54.18first year and $175,000 the second year are
54.19available only as matched by $1 of nonstate
54.20money for each $1 of state money. The match
54.21may be cash or in-kind. Any unencumbered
54.22balance from the first year does not cancel
54.23and is available in the second year.
54.24$2,696,000 the first year and $2,696,000
54.25the second year are from the minerals
54.26management account in the natural resources
54.27fund for use as provided in Minnesota
54.28Statutes, section 93.2236, paragraph (c),
54.29for mineral resource management, projects
54.30to enhance future mineral income, and
54.31projects to promote new mineral resource
54.32opportunities.
54.33$200,000 the first year and $200,000 the
54.34second year are from the state forest suspense
54.35account in the permanent school fund to
54.36accelerate land exchanges, land sales, and
55.1commercial leasing of school trust lands and
55.2to identify, evaluate, and lease construction
55.3aggregate located on school trust lands. This
55.4appropriation is to be used for securing
55.5long-term economic return from the
55.6school trust lands consistent with fiduciary
55.7responsibilities and sound natural resources
55.8conservation and management principles.
55.9The appropriations in Laws 2007, chapter 57,
55.10article 1, section 4, subdivision 2, as amended
55.11by Laws 2009, chapter 37, article 1, section
55.1260, and as extended by Laws 2011, First
55.13Special Session chapter 2, article 1, section 4,
55.14subdivision 2, for support of the land records
55.15management system are available until spent.
55.16
Subd. 3.Ecological and Water Resources
27,182,000
31,582,000
55.17
Appropriations by Fund
55.18
General
12,117,000
16,817,000
55.19
Natural Resources
11,002,000
10,702,000
55.20
Game and Fish
4,063,000
4,063,000
55.21$3,542,000 the first year and $3,242,000 the
55.22second year are from the invasive species
55.23account in the natural resources fund and
55.24$2,906,000 the first year and $3,206,000 the
55.25second year are from the general fund for
55.26management, public awareness, assessment
55.27and monitoring research, and water access
55.28inspection to prevent the spread of invasive
55.29species; management of invasive plants in
55.30public waters; and management of terrestrial
55.31invasive species on state-administered lands.
55.32$5,000,000 the first year and $5,000,000 the
55.33second year are from the water management
55.34account in the natural resources fund for only
56.1the purposes specified in Minnesota Statutes,
56.2section 103G.27, subdivision 2.
56.3$103,000 the first year and $103,000 the
56.4second year are for a grant to the Mississippi
56.5Headwaters Board for up to 50 percent of
56.6the cost of implementing the comprehensive
56.7plan for the upper Mississippi within areas
56.8under the board's jurisdiction.
56.9$10,000 the first year and $10,000 the second
56.10year are for payment to the Leech Lake Band
56.11of Chippewa Indians to implement the band's
56.12portion of the comprehensive plan for the
56.13upper Mississippi.
56.14$264,000 the first year and $264,000 the
56.15second year are for grants for up to 50
56.16percent of the cost of implementation of
56.17the Red River mediation agreement. The
56.18commissioner shall submit a report to the
56.19chairs of the legislative committees having
56.20primary jurisdiction over environment and
56.21natural resources policy and finance on the
56.22accomplishments achieved with the grants
56.23by January 15, 2015.
56.24$1,643,000 the first year and $1,643,000
56.25the second year are from the heritage
56.26enhancement account in the game and
56.27fish fund for only the purposes specified
56.28in Minnesota Statutes, section 297A.94,
56.29paragraph (e), clause (1).
56.30$1,223,000 the first year and $1,223,000 the
56.31second year are from the nongame wildlife
56.32management account in the natural resources
56.33fund for the purpose of nongame wildlife
56.34management. Notwithstanding Minnesota
56.35Statutes, section 290.431, $100,000 the first
57.1year and $100,000 the second year may
57.2be used for nongame wildlife information,
57.3education, and promotion.
57.4$1,600,000 the first year and $6,000,000 the
57.5second year are from the general fund for the
57.6following activities:
57.7(1) increased financial reimbursement
57.8and technical support to soil and water
57.9conservation districts or other local units
57.10of government for groundwater level
57.11monitoring;
57.12(2) additional surface water monitoring and
57.13analysis, including installation of monitoring
57.14gauges;
57.15(3) additional groundwater analysis to
57.16assist with water appropriation permitting
57.17decisions;
57.18(4) additional permit application review
57.19incorporating surface water and groundwater
57.20technical analysis;
57.21(5) enhancement of precipitation data and
57.22analysis to improve the use of irrigation;
57.23(6) enhanced information technology,
57.24including electronic permitting and
57.25integrated data systems; and
57.26(7) increased compliance and monitoring.
57.27Of this amount, $600,000 the first year is for
57.28silica sand rulemaking and is available until
57.29spent.
57.30The commissioner, in cooperation with the
57.31commissioner of agriculture, shall enforce
57.32compliance with aquatic plant management
57.33requirements regulating the control of
57.34aquatic plants with pesticides and removal of
58.1aquatic plants by mechanical means under
58.2Minnesota Statutes, section 103G.615.
58.3
Subd. 4.Forest Management
36,860,000
36,810,000
58.4
Appropriations by Fund
58.5
General
24,450,000
24,400,000
58.6
Natural Resources
11,123,000
11,123,000
58.7
Game and Fish
1,287,000
1,287,000
58.8$7,145,000 the first year and $7,145,000
58.9the second year are for prevention,
58.10presuppression, and suppression costs of
58.11emergency firefighting and other costs
58.12incurred under Minnesota Statutes, section
58.1388.12. The amount necessary to pay for
58.14presuppression and suppression costs during
58.15the biennium is appropriated from the general
58.16fund.
58.17By January 15 of each year, the commissioner
58.18of natural resources shall submit a report to
58.19the chairs and ranking minority members
58.20of the house and senate committees
58.21and divisions having jurisdiction over
58.22environment and natural resources finance,
58.23identifying all firefighting costs incurred
58.24and reimbursements received in the prior
58.25fiscal year. These appropriations may
58.26not be transferred. Any reimbursement
58.27of firefighting expenditures made to the
58.28commissioner from any source other than
58.29federal mobilizations shall be deposited into
58.30the general fund.
58.31$11,123,000 the first year and $11,123,000
58.32the second year are from the forest
58.33management investment account in the
58.34natural resources fund for only the purposes
59.1specified in Minnesota Statutes, section
59.289.039, subdivision 2.
59.3$1,287,000 the first year and $1,287,000
59.4the second year are from the heritage
59.5enhancement account in the game and fish
59.6fund to advance ecological classification
59.7systems (ECS) scientific management tools
59.8for forest and invasive species management.
59.9$580,000 the first year and $580,000 the
59.10second year are for the Forest Resources
59.11Council for implementation of the
59.12Sustainable Forest Resources Act.
59.13$250,000 the first year and $250,000 the
59.14second year are for the FORIST system.
59.15$50,000 the first year is for development of
59.16a plan and recommendations, in consultation
59.17with the University of Minnesota,
59.18Department of Forest Resources, on utilizing
59.19the state forest nurseries to: ensure the
59.20long-term availability of ecologically
59.21appropriate and genetically diverse native
59.22forest seed and seedlings to support state
59.23conservation projects and initiatives;
59.24protect the genetic fitness and resilience of
59.25native forest ecosystems; and support tree
59.26improvement research to address evolving
59.27pressures such as invasive species and
59.28climate change. By December 31, 2013,
59.29the commissioner shall submit a report with
59.30the plan and recommendations to the chairs
59.31and ranking minority members of the senate
59.32and house of representatives committees
59.33and divisions with jurisdiction over natural
59.34resources. The report shall address funding
59.35to improve state forest nursery and tree
60.1improvement capabilities. The report shall
60.2also provide updated recommendations from
60.3those contained in the budget and financial
60.4plan required under Laws 2011, First Special
60.5Session chapter 2, article 4, section 30.
60.6The general fund base budget for forest
60.7management in fiscal year 2016 and
60.8thereafter is $23,850,000.
60.9
Subd. 5.Parks and Trails Management
67,802,000
67,802,000
60.10
Appropriations by Fund
60.11
2014
2015
60.12
General
19,780,000
19,780,000
60.13
Natural Resources
45,763,000
45,763,000
60.14
Game and Fish
2,259,000
2,259,000
60.15$1,075,000 the first year and $1,075,000 the
60.16second year are from the water recreation
60.17account in the natural resources fund for
60.18enhancing public water access facilities
60.19and to prevent the spread of aquatic
60.20invasive species, including inspection and
60.21decontamination programs. Of the amount in
60.22the first year, $300,000 is for construction of
60.23restroom facilities at the public water access
60.24for Crane Lake on Handberg Road and is
60.25available until spent. This appropriation is
60.26not available until the commissioner develops
60.27and implements design standards and best
60.28management practices for public water access
60.29sites that maintain and improve water quality
60.30by avoiding shoreline erosion and runoff.
60.31$5,740,000 the first year and $5,740,000 the
60.32second year are from the natural resources
60.33fund for state trail, park, and recreation area
60.34operations. This appropriation is from the
60.35revenue deposited in the natural resources
61.1fund under Minnesota Statutes, section
61.2297A.94, paragraph (e), clause (2).
61.3$1,005,000 the first year and $1,005,000 the
61.4second year are from the natural resources
61.5fund for trail grants to local units of
61.6government on land to be maintained for at
61.7least 20 years for the purposes of the grants.
61.8This appropriation is from the revenue
61.9deposited in the natural resources fund
61.10under Minnesota Statutes, section 297A.94,
61.11paragraph (e), clause (4). Any unencumbered
61.12balance does not cancel at the end of the first
61.13year and is available for the second year.
61.14$8,424,000 the first year and $8,424,000
61.15the second year are from the snowmobile
61.16trails and enforcement account in the
61.17natural resources fund for the snowmobile
61.18grants-in-aid program. Any unencumbered
61.19balance does not cancel at the end of the first
61.20year and is available for the second year.
61.21$1,460,000 the first year and $1,460,000 the
61.22second year are from the natural resources
61.23fund for the off-highway vehicle grants-in-aid
61.24program. Of this amount, $1,210,000 each
61.25year is from the all-terrain vehicle account;
61.26$150,000 each year is from the off-highway
61.27motorcycle account; and $100,000 each year
61.28is from the off-road vehicle account. Any
61.29unencumbered balance does not cancel at the
61.30end of the first year and is available for the
61.31second year.
61.32$75,000 the first year and $75,000 the second
61.33year are from the cross-country ski account
61.34in the natural resources fund for grooming
62.1and maintaining cross-country ski trails in
62.2state parks, trails, and recreation areas.
62.3$250,000 the first year and $250,000 the
62.4second year are from the state land and
62.5water conservation account (LAWCON)
62.6in the natural resources fund for priorities
62.7established by the commissioner for eligible
62.8state projects and administrative and
62.9planning activities consistent with Minnesota
62.10Statutes, section 84.0264, and the federal
62.11Land and Water Conservation Fund Act.
62.12Any unencumbered balance does not cancel
62.13at the end of the first year and is available for
62.14the second year.
62.15The appropriation in Laws 2009, chapter
62.1637, article 1, section 4, subdivision 5, from
62.17the natural resources fund from the revenue
62.18deposited under Minnesota Statutes, section
62.19297A.94, paragraph (e), clause (4), for local
62.20grants is available until spent.
62.21
Subd. 6.Fish and Wildlife Management
62,775,000
62,775,000
62.22
Appropriations by Fund
62.23
2014
2015
62.24
Natural Resources
1,906,000
1,906,000
62.25
Game and Fish
60,869,000
60,869,000
62.26$8,167,000 the first year and $8,167,000
62.27the second year are from the heritage
62.28enhancement account in the game and fish
62.29fund only for activities specified in Minnesota
62.30Statutes, section 297A.94, paragraph (e),
62.31clause (1). Notwithstanding Minnesota
62.32Statutes, section 297A.94, five percent of
62.33this appropriation may be used for expanding
62.34hunter and angler recruitment and retention
63.1activities that emphasize the recruitment and
63.2retention of underrepresented groups.
63.3Notwithstanding Minnesota Statutes, section
63.484.943, $13,000 the first year and $13,000
63.5the second year from the critical habitat
63.6private sector matching account may be used
63.7to publicize the critical habitat license plate
63.8match program.
63.9
Subd. 7.Enforcement
35,518,000
35,518,000
63.10
Appropriations by Fund
63.11
General
3,975,000
3,975,000
63.12
Natural Resources
10,000,000
10,000,000
63.13
Game and Fish
21,443,000
21,443,000
63.14
Remediation
100,000
100,000
63.15$1,718,000 the first year and $1,718,000 the
63.16second year are from the general fund for
63.17enforcement efforts to prevent the spread of
63.18aquatic invasive species.
63.19$1,450,000 the first year and $1,450,000
63.20the second year are from the heritage
63.21enhancement account in the game and
63.22fish fund for only the purposes specified
63.23in Minnesota Statutes, section 297A.94,
63.24paragraph (e), clause (1).
63.25$250,000 the first year and $250,000 the
63.26second year are for the conservation officer
63.27pre-employment education program. Of this
63.28amount, $30,000 each year is from the water
63.29recreation account, $13,000 each year is from
63.30the snowmobile account, and $20,000 each
63.31year is from the all-terrain vehicle account
63.32in the natural resources fund; and $187,000
63.33each year is from the game and fish fund, of
63.34which $17,000 each year is from the heritage
63.35enhancement account.
64.1$1,082,000 the first year and $1,082,000 the
64.2second year are from the water recreation
64.3account in the natural resources fund
64.4for grants to counties for boat and water
64.5safety and to prevent the spread of aquatic
64.6invasive species, including inspection
64.7and decontamination programs. Any
64.8unencumbered balance does not cancel at the
64.9end of the first year and is available for the
64.10second year.
64.11$315,000 the first year and $315,000 the
64.12second year are from the snowmobile
64.13trails and enforcement account in the
64.14natural resources fund for grants to local
64.15law enforcement agencies for snowmobile
64.16enforcement activities. Any unencumbered
64.17balance does not cancel at the end of the first
64.18year and is available for the second year.
64.19$250,000 the first year and $250,000 the
64.20second year are from the all-terrain vehicle
64.21account for grants to qualifying organizations
64.22to assist in safety and environmental
64.23education and monitoring trails on public
64.24lands under Minnesota Statutes, section
64.2584.9011. Grants issued under this paragraph:
64.26(1) must be issued through a formal
64.27agreement with the organization; and
64.28(2) must not be used as a substitute for
64.29traditional spending by the organization.
64.30By December 15 each year, an organization
64.31receiving a grant under this paragraph shall
64.32report to the commissioner with details on
64.33expenditures and outcomes from the grant.
64.34Of this appropriation, $25,000 each year
64.35is for administration of these grants. Any
64.36unencumbered balance does not cancel at the
65.1end of the first year and is available for the
65.2second year.
65.3$510,000 the first year and $510,000
65.4the second year are from the natural
65.5resources fund for grants to county law
65.6enforcement agencies for off-highway
65.7vehicle enforcement and public education
65.8activities based on off-highway vehicle use
65.9in the county. Of this amount, $498,000 each
65.10year is from the all-terrain vehicle account;
65.11$11,000 each year is from the off-highway
65.12motorcycle account; and $1,000 each year
65.13is from the off-road vehicle account. The
65.14county enforcement agencies may use
65.15money received under this appropriation
65.16to make grants to other local enforcement
65.17agencies within the county that have a high
65.18concentration of off-highway vehicle use.
65.19Of this appropriation, $25,000 each year
65.20is for administration of these grants. Any
65.21unencumbered balance does not cancel at the
65.22end of the first year and is available for the
65.23second year.
65.24$720,000 the first year and $720,000 the
65.25second year are for development and
65.26maintenance of a records management
65.27system capable of providing real time data
65.28with global positioning system information.
65.29Of this amount, $360,000 each year is from
65.30the game and fish fund, and $360,000 each
65.31year is from the invasive species account in
65.32the natural resources fund.
65.33Up to $300,000 each year from the invasive
65.34species account is for grants to local units
65.35of government and tribes to prevent the
66.1spread of aquatic invasive species, including
66.2inspection and decontamination programs.
66.3
Subd. 8.Operations Support
320,000
320,000
66.4
Appropriations by Fund
66.5
Natural Resources
320,000
320,000
66.6$320,000 the first year and $320,000 the
66.7second year are from the natural resources
66.8fund for grants to be divided equally between
66.9the city of St. Paul for the Como Park Zoo
66.10and Conservatory and the city of Duluth
66.11for the Duluth Zoo. This appropriation
66.12is from the revenue deposited to the fund
66.13under Minnesota Statutes, section 297A.94,
66.14paragraph (e), clause (5).
66.15The commissioner may spend up to $300,000
66.16per year from the special revenue fund to
66.17improve data analytics. The commissioner
66.18may bill the divisions of the agency an
66.19appropriate share of costs associated with
66.20this project. Any information technology
66.21development, support, or costs necessary for
66.22this project shall be incorporated into the
66.23agency's service level agreement with and
66.24paid to the Office of Enterprise Technology.

66.25
66.26
Sec. 5. BOARD OF WATER AND SOIL
RESOURCES
$
12,641,000
$
12,641,000
66.27$3,423,000 the first year and $3,423,000 the
66.28second year are for natural resources block
66.29grants to local governments. Grants must be
66.30matched with a combination of local cash or
66.31in-kind contributions. The base grant portion
66.32related to water planning must be matched
66.33by an amount as specified by Minnesota
66.34Statutes, section 103B.3369. The board may
66.35reduce the amount of the natural resources
67.1block grant to a county by an amount equal to
67.2any reduction in the county's general services
67.3allocation to a soil and water conservation
67.4district from the county's previous year
67.5allocation when the board determines that
67.6the reduction was disproportionate.
67.7$3,116,000 the first year and $3,116,000
67.8the second year are for grants requested
67.9by soil and water conservation districts for
67.10general purposes, nonpoint engineering, and
67.11implementation of the reinvest in Minnesota
67.12reserve program. Upon approval of the
67.13board, expenditures may be made from these
67.14appropriations for supplies and services
67.15benefiting soil and water conservation
67.16districts. Any district requesting a grant
67.17under this paragraph shall maintain a Web
67.18page that publishes, at a minimum, its annual
67.19report, annual audit, annual budget, and
67.20meeting notices and minutes.
67.21$1,560,000 the first year and $1,560,000 the
67.22second year are for the following cost-share
67.23programs:
67.24(1) $260,000 each year is for feedlot water
67.25quality grants for feedlots under 300 animal
67.26units in areas where there are impaired
67.27waters;
67.28(2) $1,200,000 each year is for soil and water
67.29conservation district cost-sharing contracts
67.30for erosion control, nutrient and manure
67.31management, vegetative buffers, and water
67.32quality management; and
67.33(3) $100,000 each year is for county
67.34cooperative weed management programs and
67.35to restore native plants in selected invasive
68.1species management sites by providing local
68.2native seeds and plants to landowners for
68.3implementation.
68.4The board shall submit a report to the
68.5commissioner of the Pollution Control
68.6Agency on the status of subsurface sewage
68.7treatment systems in order to ensure a single,
68.8comprehensive inventory of the systems for
68.9planning purposes.
68.10$386,000 the first year and $386,000
68.11the second year are for implementation,
68.12enforcement, and oversight of the Wetland
68.13Conservation Act.
68.14$166,000 the first year and $166,000
68.15the second year are to provide technical
68.16assistance to local drainage management
68.17officials and for the costs of the Drainage
68.18Work Group.
68.19$100,000 the first year and $100,000
68.20the second year are for a grant to the
68.21Red River Basin Commission for water
68.22quality and floodplain management,
68.23including administration of programs. This
68.24appropriation must be matched by nonstate
68.25funds. If the appropriation in either year is
68.26insufficient, the appropriation in the other
68.27year is available for it.
68.28$120,000 the first year and $120,000
68.29the second year are for grants to Area
68.30II Minnesota River Basin Projects for
68.31floodplain management.
68.32Notwithstanding Minnesota Statutes, section
68.33103C.501, the board may shift cost-share
68.34funds in this section and may adjust the
68.35technical and administrative assistance
69.1portion of the grant funds to leverage
69.2federal or other nonstate funds or to address
69.3high-priority needs identified in local water
69.4management plans or comprehensive water
69.5management plans.
69.6$125,000 the first year and $125,000 the
69.7second year are to implement internal control
69.8policies and provide related oversight and
69.9accountability for agency programs.
69.10The appropriations for grants in this
69.11section are available until expended. If an
69.12appropriation for grants in either year is
69.13insufficient, the appropriation in the other
69.14year is available for it.

69.15
Sec. 6. METROPOLITAN COUNCIL
$
8,540,000
$
8,540,000
69.16
Appropriations by Fund
69.17
2014
2015
69.18
General
2,870,000
2,870,000
69.19
Natural Resources
5,670,000
5,670,000
69.20$2,870,000 the first year and $2,870,000 the
69.21second year are for metropolitan area regional
69.22parks operation and maintenance according
69.23to Minnesota Statutes, section 473.351.
69.24$5,670,000 the first year and $5,670,000 the
69.25second year are from the natural resources
69.26fund for metropolitan area regional parks
69.27and trails maintenance and operations. This
69.28appropriation is from the revenue deposited
69.29in the natural resources fund under Minnesota
69.30Statutes, section 297A.94, paragraph (e),
69.31clause (3).

69.32
69.33
Sec. 7. CONSERVATION CORPS
MINNESOTA
$
945,000
$
945,000
70.1
Appropriations by Fund
70.2
2014
2015
70.3
General
455,000
455,000
70.4
Natural Resources
490,000
490,000
70.5Conservation Corps Minnesota may receive
70.6money appropriated from the natural
70.7resources fund under this section only
70.8as provided in an agreement with the
70.9commissioner of natural resources.

70.10
Sec. 8. ZOOLOGICAL BOARD
$
5,585,000
$
5,585,000
70.11
Appropriations by Fund
70.12
2014
2015
70.13
General
5,425,000
5,425,000
70.14
Natural Resources
160,000
160,000
70.15$160,000 the first year and $160,000 the
70.16second year are from the natural resources
70.17fund from the revenue deposited under
70.18Minnesota Statutes, section 297A.94,
70.19paragraph (e), clause (5).

70.20    Sec. 9. Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended by
70.21Laws 2010, First Special Session chapter 1, article 6, section 6, is amended to read:
70.22
Subd. 6.Transfers In
70.23(a) The amounts appropriated from the
70.24agency indirect costs account in the special
70.25revenue fund are reduced by $328,000 in
70.26fiscal year 2010 and $462,000 in fiscal year
70.272011, and those amounts must be transferred
70.28to the general fund by June 30, 2011. The
70.29appropriation reductions are onetime.
70.30(b) The commissioner of management and
70.31budget shall transfer $48,000,000 in fiscal
70.32year 2011 from the closed landfill investment
70.33fund in Minnesota Statutes, section 115B.421,
71.1to the general fund. The commissioner shall
71.2transfer $12,000,000 $9,900,000 on July 1
71.3in each of the years, 2014, 2015, 2016, and
71.42017 $12,550,000 in each of the years 2015
71.5and 2016, and $13,000,000 in 2017 from the
71.6general fund to the closed landfill investment
71.7fund. For each transfer to the closed landfill
71.8investment fund, the commissioner shall
71.9determine the total amount of interest and
71.10other earnings that would have accrued to
71.11the fund if the transfers to the general fund
71.12under this paragraph had not been made and
71.13add this amount to the transfer. The amounts
71.14necessary for these transfers are appropriated
71.15from the general fund in the fiscal years
71.16specified for the transfers.

71.17ARTICLE 4
71.18ENVIRONMENT AND NATURAL RESOURCES STATUTORY CHANGES

71.19    Section 1. Minnesota Statutes 2012, section 13.7411, subdivision 4, is amended to read:
71.20    Subd. 4. Waste management. (a) Product stewardship program. Trade secret
71.21and sales data information submitted to the Pollution Control Agency under the product
71.22stewardship program is classified under section 115A.1415.
71.23(b) Transfer station data. Data received by a county or district from a transfer
71.24station under section 115A.84, subdivision 5, are classified under that section.
71.25(b) (c) Solid waste records. Records of solid waste facilities received, inspected,
71.26or copied by a county pursuant to section 115A.882 are classified pursuant to section
71.27115A.882, subdivision 3 .
71.28(c) (d) Customer lists. Customer lists provided to counties or cities by solid waste
71.29collectors are classified under section 115A.93, subdivision 5.

71.30    Sec. 2. Minnesota Statutes 2012, section 84.027, is amended by adding a subdivision
71.31to read:
71.32    Subd. 19. Federal law compliance. Notwithstanding any law to the contrary,
71.33the commissioner may establish, by written order, policies for the use and operation of
71.34other power-driven mobility devices, as defined under Code of Federal Regulations, title
72.128, section 35.104, on lands and in facilities administered by the commissioner for the
72.2purposes of implementing the Americans with Disabilities Act, United States Code, title
72.342, section 12101 et seq. These policies are exempt from the rulemaking provisions of
72.4chapter 14 and section 14.386 does not apply.

72.5    Sec. 3. Minnesota Statutes 2012, section 84.415, is amended by adding a subdivision
72.6to read:
72.7    Subd. 7. Existing road right-of-way; fee exemption. A utility license for crossing
72.8public lands or public waters is exempt from all fees specified in this section and in rules
72.9adopted under this section when the utility crossing is on an existing right-of-way of
72.10a public road.
72.11EFFECTIVE DATE.This section is effective July 1, 2014.

72.12    Sec. 4. Minnesota Statutes 2012, section 84.63, is amended to read:
72.1384.63 CONVEYANCE OF INTERESTS IN LANDS TO STATE AND
72.14FEDERAL GOVERNMENTS.
72.15(a) Notwithstanding any existing law to the contrary, the commissioner of natural
72.16resources is hereby authorized on behalf of the state to convey to the United States
72.17or to the state of Minnesota or any of its subdivisions, upon state-owned lands under
72.18the administration of the commissioner of natural resources, permanent or temporary
72.19easements for specified periods or otherwise for trails, highways, roads including
72.20limitation of right of access from the lands to adjacent highways and roads, flowage for
72.21development of fish and game resources, stream protection, flood control, and necessary
72.22appurtenances thereto, such conveyances to be made upon such terms and conditions
72.23including provision for reversion in the event of non-user as the commissioner of natural
72.24resources may determine.
72.25(b) In addition to the fee for the market value of the easement, the commissioner of
72.26natural resources shall assess the applicant the following fees:
72.27(1) an application fee of $2,000 to cover reasonable costs for reviewing the
72.28application and preparing the easement; and
72.29(2) a monitoring fee to cover the projected reasonable costs for monitoring the
72.30construction of the improvement for which the easement was conveyed and preparing
72.31special terms and conditions for the easement. The commissioner must give the applicant
72.32an estimate of the monitoring fee before the applicant submits the fee.
73.1(c) The applicant shall pay these fees to the commissioner of natural resources.
73.2The commissioner shall not issue the easement until the applicant has paid in full the
73.3application fee, the monitoring fee, and the market value payment for the easement.
73.4(d) Upon completion of construction of the improvement for which the easement
73.5was conveyed, the commissioner shall refund the unobligated balance from the monitoring
73.6fee revenue. The commissioner shall not return the application fee, even if the application
73.7is withdrawn or denied.
73.8(e) Money received under paragraph (b) must be deposited in the land management
73.9account in the natural resources fund and is appropriated to the commissioner of natural
73.10resources to cover the reasonable costs incurred for issuing and monitoring easements.
73.11(f) A county or joint county regional railroad authority is exempt from all fees
73.12specified under this section for trail easements on state-owned land.
73.13EFFECTIVE DATE.This section is effective July 1, 2014.

73.14    Sec. 5. [84.633] EXCHANGE OF ROAD EASEMENTS.
73.15    Subdivision 1. Authority. The commissioner of natural resources, on behalf of
73.16the state, may convey a road easement according to this section for access across state
73.17land under the commissioner's jurisdiction in exchange for a road easement for access to
73.18property owned by the United States, the state of Minnesota or any of its subdivisions, or a
73.19private party. The exercise of the easement across state land must not cause significant
73.20adverse environmental or natural resources management impacts. Exchanges under this
73.21section are limited to existing access corridors.
73.22    Subd. 2. Substantially equal acres. The acres covered by the state easement
73.23conveyed by the commissioner must be substantially equal to the acres covered by the
73.24easement being received by the commissioner. For purposes of this section, "substantially
73.25equal" means that the acres do not differ by more than 20 percent. The commissioner's
73.26finding of substantially equal acres is in lieu of an appraisal or other determination of
73.27value of the lands.
73.28    Subd. 3. School trust lands. If the commissioner conveys a road easement over
73.29school trust land to a nongovernmental entity, the term of the road easement is limited
73.30to 50 years. The easement exchanged with the state may be limited to 50 years or may
73.31be perpetual.
73.32    Subd. 4. Terms and conditions. The commissioner may impose terms and
73.33conditions of use as necessary and appropriate under the circumstances. The state may
73.34accept an easement with similar terms and conditions as the state easement.
74.1    Subd. 5. Survey. If the commissioner determines that a survey is required, the
74.2governmental unit or private landowner shall pay to the commissioner a survey fee of not
74.3less than one half of the cost of the survey as determined by the commissioner.
74.4    Subd. 6. Application fee. When a private landowner or governmental unit, except
74.5the state, presents to the commissioner an offer to exchange road easements, the private
74.6landowner or governmental unit shall pay an application fee as provided under section
74.784.63 to cover reasonable costs for reviewing the application and preparing the easements.
74.8    Subd. 7. Title. If the commissioner determines it is necessary to obtain an opinion
74.9as to the title of the land being encumbered by the easement that will be received by the
74.10commissioner, the governmental unit or private landowner shall submit an abstract of title
74.11or other title information sufficient to determine possession of the land, improvements,
74.12liens, encumbrances, and other matters affecting title.
74.13    Subd. 8. Disposition of fees. (a) Any fee paid under subdivision 5 must be credited
74.14to the account from which expenses are or will be paid and the fee is appropriated for the
74.15expenditures in the same manner as other money in the account.
74.16(b) Any fee paid under subdivision 6 must be deposited in the land management
74.17account in the natural resources fund and is appropriated to the commissioner to cover the
74.18reasonable costs incurred for preparing and issuing the state road easement and accepting
74.19the road easement from the private landowner or governmental entity.

74.20    Sec. 6. Minnesota Statutes 2012, section 84.82, is amended by adding a subdivision to
74.21read:
74.22    Subd. 2a. Nontrail use registration. A snowmobile may be registered for nontrail
74.23use. A snowmobile registered under this subdivision may not be operated on a state or
74.24grant-in-aid snowmobile trail. The fee for a nontrail use registration is $45 for three years.
74.25A nontrail use registration is not transferable. In addition to other penalties prescribed by
74.26law, the penalty for violation of this subdivision is immediate revocation of the nontrail
74.27use registration. The commissioner shall ensure that the registration sticker provided for
74.28limited nontrail use is of a different color and is distinguishable from other snowmobile
74.29registration and state trail stickers provided.

74.30    Sec. 7. Minnesota Statutes 2012, section 84.82, subdivision 3, is amended to read:
74.31    Subd. 3. Fees for registration. (a) The fee for registration of each snowmobile,
74.32other than those used for an agricultural purpose, as defined in section 84.92, subdivision
74.331c, or those registered by a dealer or manufacturer pursuant to paragraph (b) or (c), or
75.1those registered under subdivision 2a shall be as follows: $75 for three years and $10
75.2for a duplicate or transfer.
75.3(b) The total registration fee for all snowmobiles owned by a dealer and operated for
75.4demonstration or testing purposes shall be $50 per year.
75.5(c) The total registration fee for all snowmobiles owned by a manufacturer and
75.6operated for research, testing, experimentation, or demonstration purposes shall be $150
75.7per year. Dealer and manufacturer registrations are not transferable.
75.8(d) The onetime fee for registration of an exempt snowmobile under subdivision
75.96a is $6.

75.10    Sec. 8. Minnesota Statutes 2012, section 84.8205, subdivision 1, is amended to read:
75.11    Subdivision 1. Sticker required; fee. (a) A snowmobile that is not registered
75.12in the state under section 84.82, subdivision 3, paragraph (a), or that is registered by a
75.13manufacturer or dealer under section 84.82, subdivision 3, paragraph (b) or (c), may
75.14not be operated on a state or grant-in-aid snowmobile trail unless a snowmobile state
75.15trail sticker is affixed to the snowmobile.
75.16(b) The commissioner of natural resources shall issue a sticker upon application
75.17and payment of a fee. The fee is:
75.18(1) $35 for a one-year snowmobile state trail sticker purchased by an individual; and
75.19(2) $15 for a one-year snowmobile state trail sticker purchased by a dealer or
75.20manufacturer.
75.21(c) In addition to other penalties prescribed by law, an individual in violation of
75.22this subdivision must purchase an annual state trail sticker for a fee of $70. The sticker
75.23is valid from November 1 through June 30. Fees collected under this section, except for
75.24the issuing fee for licensing agents, shall be deposited in the state treasury and credited
75.25to the snowmobile trails and enforcement account in the natural resources fund and,
75.26except for the electronic licensing system commission established by the commissioner
75.27under section 84.027, subdivision 15, must be used for grants-in-aid, trail maintenance,
75.28grooming, and easement acquisition.
75.29    (d) A state trail sticker is not required under this section for:
75.30    (1) a snowmobile that is owned and used by the United States, an Indian tribal
75.31government, another state, or a political subdivision thereof that is exempt from
75.32registration under section 84.82, subdivision 6;
75.33    (2) a collector snowmobile that is operated as provided in a special permit issued for
75.34the collector snowmobile under section 84.82, subdivision 7a;
76.1    (3) a person operating a snowmobile only on the portion of a trail that is owned by
76.2the person or the person's spouse, child, or parent; or
76.3    (4) a snowmobile while being used to groom a state or grant-in-aid trail.

76.4    Sec. 9. Minnesota Statutes 2012, section 84.922, is amended by adding a subdivision
76.5to read:
76.6    Subd. 14. No registration weekend. The commissioner shall designate, by written
76.7order published in the State Register, one weekend each year when, notwithstanding
76.8subdivision 1, an all-terrain vehicle may be operated on state and grant-in-aid all-terrain
76.9vehicle trails without a registration issued under this section. Nonresidents may participate
76.10during the designated weekend without a state trail pass required under section 84.9275.
76.11EFFECTIVE DATE.This section is effective the day following final enactment.

76.12    Sec. 10. Minnesota Statutes 2012, section 84.9256, subdivision 1, is amended to read:
76.13    Subdivision 1. Prohibitions on youthful operators. (a) Except for operation on
76.14public road rights-of-way that is permitted under section 84.928 and as provided under
76.15paragraph (j), a driver's license issued by the state or another state is required to operate an
76.16all-terrain vehicle along or on a public road right-of-way.
76.17    (b) A person under 12 years of age shall not:
76.18    (1) make a direct crossing of a public road right-of-way;
76.19    (2) operate an all-terrain vehicle on a public road right-of-way in the state; or
76.20    (3) operate an all-terrain vehicle on public lands or waters, except as provided in
76.21paragraph (f).
76.22    (c) Except for public road rights-of-way of interstate highways, a person 12 years
76.23of age but less than 16 years may make a direct crossing of a public road right-of-way
76.24of a trunk, county state-aid, or county highway or operate on public lands and waters or
76.25state or grant-in-aid trails, only if that person possesses a valid all-terrain vehicle safety
76.26certificate issued by the commissioner and is accompanied by a person 18 years of age or
76.27older who holds a valid driver's license.
76.28    (d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years
76.29old, but less than 16 18 years old, must:
76.30    (1) successfully complete the safety education and training program under section
76.3184.925 , subdivision 1, including a riding component; and
76.32    (2) be able to properly reach and control the handle bars and reach the foot pegs
76.33while sitting upright on the seat of the all-terrain vehicle.
77.1    (e) A person at least 11 years of age may take the safety education and training
77.2program and may receive an all-terrain vehicle safety certificate under paragraph (d), but
77.3the certificate is not valid until the person reaches age 12.
77.4    (f) A person at least ten years of age but under 12 years of age may operate an
77.5all-terrain vehicle with an engine capacity up to 90cc on public lands or waters if
77.6accompanied by a parent or legal guardian.
77.7    (g) A person under 15 years of age shall not operate a class 2 all-terrain vehicle.
77.8    (h) A person under the age of 16 may not operate an all-terrain vehicle on public
77.9lands or waters or on state or grant-in-aid trails if the person cannot properly reach and
77.10control the handle bars and reach the foot pegs while sitting upright on the seat of the
77.11all-terrain vehicle.
77.12(i) Notwithstanding paragraph (c), a nonresident at least 12 years old, but less than
77.1316 years old, may make a direct crossing of a public road right-of-way of a trunk, county
77.14state-aid, or county highway or operate an all-terrain vehicle on public lands and waters
77.15or state or grant-in-aid trails if:
77.16(1) the nonresident youth has in possession evidence of completing an all-terrain
77.17safety course offered by the ATV Safety Institute or another state as provided in section
77.1884.925 , subdivision 3; and
77.19(2) the nonresident youth is accompanied by a person 18 years of age or older who
77.20holds a valid driver's license.
77.21(j) A person 12 years of age but less than 16 years of age may operate an all-terrain
77.22vehicle on the bank, slope, or ditch of a public road right-of-way as permitted under
77.23section 84.928 if the person:
77.24(1) possesses a valid all-terrain vehicle safety certificate issued by the commissioner;
77.25and
77.26(2) is accompanied by a parent or legal guardian on a separate all-terrain vehicle.

77.27    Sec. 11. Minnesota Statutes 2012, section 84.928, subdivision 1, is amended to read:
77.28    Subdivision 1. Operation on roads and rights-of-way. (a) Unless otherwise
77.29allowed in sections 84.92 to 84.928, a person shall not operate an all-terrain vehicle in
77.30this state along or on the roadway, shoulder, or inside bank or slope of a public road
77.31right-of-way of a trunk, county state-aid, or county highway.
77.32    (b) A person may operate a class 1 all-terrain vehicle in the ditch or the outside
77.33bank or slope of a trunk, county state-aid, or county highway unless prohibited under
77.34paragraph (d) or (f).
77.35    (c) A person may operate a class 2 all-terrain vehicle:
78.1    (1) within the public road right-of-way of a county state-aid or county highway on
78.2the extreme right-hand side of the road and left turns may be made from any part of
78.3the road if it is safe to do so under the prevailing conditions, unless prohibited under
78.4paragraph (d) or (f). A person may operate a class 2 all-terrain vehicle;
78.5    (2) on the bank, slope, or ditch of a public road right-of-way of a trunk, county
78.6state-aid, or county highway but only to access businesses or make trail connections, and
78.7left turns may be made from any part of the road if it is safe to do so under the prevailing
78.8conditions, unless prohibited under paragraph (d) or (f); and
78.9    (3) on the bank or ditch of a public road right-of-way on a designated class 2
78.10all-terrain vehicle trail.
78.11    (d) A road authority as defined under section 160.02, subdivision 25, may after a
78.12public hearing restrict the use of all-terrain vehicles in the public road right-of-way under
78.13its jurisdiction.
78.14    (e) The restrictions in paragraphs (a), (d), (h), (i), and (j) do not apply to the
78.15operation of an all-terrain vehicle on the shoulder, inside bank or slope, ditch, or outside
78.16bank or slope of a trunk, interstate, county state-aid, or county highway:
78.17(1) that is part of a funded grant-in-aid trail; or
78.18(2) when the all-terrain vehicle is owned by or operated under contract with a publicly
78.19or privately owned utility or pipeline company and used for work on utilities or pipelines.
78.20    (f) The commissioner may limit the use of a right-of-way for a period of time if the
78.21commissioner determines that use of the right-of-way causes:
78.22    (1) degradation of vegetation on adjacent public property;
78.23    (2) siltation of waters of the state;
78.24    (3) impairment or enhancement to the act of taking game; or
78.25    (4) a threat to safety of the right-of-way users or to individuals on adjacent public
78.26property.
78.27    The commissioner must notify the road authority as soon as it is known that a closure
78.28will be ordered. The notice must state the reasons and duration of the closure.
78.29    (g) A person may operate an all-terrain vehicle registered for private use and used
78.30for agricultural purposes on a public road right-of-way of a trunk, county state-aid, or
78.31county highway in this state if the all-terrain vehicle is operated on the extreme right-hand
78.32side of the road, and left turns may be made from any part of the road if it is safe to do so
78.33under the prevailing conditions.
78.34    (h) A person shall not operate an all-terrain vehicle within the public road
78.35right-of-way of a trunk, county state-aid, or county highway from April 1 to August 1 in
78.36the agricultural zone unless the vehicle is being used exclusively as transportation to and
79.1from work on agricultural lands. This paragraph does not apply to an agent or employee
79.2of a road authority, as defined in section 160.02, subdivision 25, or the Department of
79.3Natural Resources when performing or exercising official duties or powers.
79.4    (i) A person shall not operate an all-terrain vehicle within the public road right-of-way
79.5of a trunk, county state-aid, or county highway between the hours of one-half hour after
79.6sunset to one-half hour before sunrise, except on the right-hand side of the right-of-way
79.7and in the same direction as the highway traffic on the nearest lane of the adjacent roadway.
79.8    (j) A person shall not operate an all-terrain vehicle at any time within the
79.9right-of-way of an interstate highway or freeway within this state.

79.10    Sec. 12. [84.973] POLLINATOR HABITAT PROGRAM.
79.11(a) The commissioner shall develop best management practices and habitat
79.12restoration guidelines for pollinator habitat enhancement. Best management practices
79.13and guidelines developed under this section must be used for all habitat enhancement or
79.14restoration of lands under the commissioner's control.
79.15(b) Prairie restorations conducted on state lands or with state funds must include
79.16an appropriate diversity of native species selected to provide habitat for pollinators
79.17throughout the growing season.

79.18    Sec. 13. Minnesota Statutes 2012, section 84D.108, subdivision 2, is amended to read:
79.19    Subd. 2. Permit requirements. (a) Service providers must complete invasive
79.20species training provided by the commissioner and pass an examination to qualify for a
79.21permit. Service provider permits are valid for three calendar years.
79.22(b) A $50 application and testing fee is required for service provider permit
79.23applications.
79.24(c) Persons working for a permittee must satisfactorily complete aquatic invasive
79.25species-related training provided by the commissioner, except as provided under
79.26paragraph (d).
79.27(d) A person working for and supervised by a permittee is not required to complete
79.28the training under paragraph (c) if the water-related equipment or other water-related
79.29structures remain on the riparian property owned or controlled by the permittee and are
79.30only removed from and placed into the same water of the state.

79.31    Sec. 14. Minnesota Statutes 2012, section 85.015, subdivision 13, is amended to read:
79.32    Subd. 13. Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton,
79.33Koochiching, and Itasca Counties. (a)(1) The Taconite Trail shall originate at Ely in St.
80.1Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to
80.2McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in
80.3Itasca County and there terminate;
80.4(2) The C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County
80.5and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand
80.6Marais in Cook County, thence northeasterly to the international boundary in the vicinity
80.7of the north shore of Lake Superior, and there terminate;
80.8(3) The Grand Marais to International Falls Trail shall originate in Grand Marais
80.9in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area,
80.10to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to
80.11Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St.
80.12Louis County to International Falls in Koochiching County, and there terminate;
80.13(4) The Matthew Lourey Trail shall originate in Duluth in St. Louis County and
80.14extend southerly to St. Croix Chengwatana State Forest in Pine County.
80.15(b) The trails shall be developed primarily for riding and hiking.
80.16(c) In addition to the authority granted in subdivision 1, lands and interests in lands
80.17for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring
80.18any land or interest in land by eminent domain the commissioner of administration shall
80.19obtain the approval of the governor. The governor shall consult with the Legislative
80.20Advisory Commission before granting approval. Recommendations of the Legislative
80.21Advisory Commission shall be advisory only. Failure or refusal of the commission to
80.22make a recommendation shall be deemed a negative recommendation.

80.23    Sec. 15. Minnesota Statutes 2012, section 85.052, subdivision 6, is amended to read:
80.24    Subd. 6. State park reservation system. (a) The commissioner may, by written
80.25order, develop reasonable reservation policies for campsites and other lodging. These
80.26policies are exempt from rulemaking provisions under chapter 14 and section 14.386
80.27does not apply.
80.28(b) The revenue collected from the state park reservation fee established under
80.29subdivision 5, including interest earned, shall be deposited in the state park account in the
80.30natural resources fund and is annually appropriated to the commissioner for the cost of
80.31the state park reservation system.
80.32EFFECTIVE DATE.This section is effective retroactively from March 1, 2012.

80.33    Sec. 16. Minnesota Statutes 2012, section 85.053, subdivision 8, is amended to read:
81.1    Subd. 8. Military personnel on leave; exemption. (a) A one-day permit, under
81.2subdivision 4, shall be issued without a fee for a motor vehicle being used by a person
81.3who is serving in active military service in any branch or unit of the United States armed
81.4forces and who is stationed outside Minnesota, during the period of active service and for
81.590 days immediately thereafter, if the person presents the person's current military orders
81.6to the park attendant on duty or other designee of the commissioner.
81.7    (b) For purposes of this section, "active service" has the meaning given under section
81.8190.05 , subdivision 5c, when performed outside Minnesota.
81.9(c) A permit is not required for a motor vehicle being used by military personnel or
81.10their dependents who have in their possession the annual pass for United States military
81.11and their dependents issued by the federal government for access to federal recreation sites.

81.12    Sec. 17. Minnesota Statutes 2012, section 85.054, is amended by adding a subdivision
81.13to read:
81.14    Subd. 18. La Salle Lake State Recreation Area. A state park permit is not required
81.15and a fee may not be charged for motor vehicle entry, use, or parking in La Salle Lake
81.16State Recreation Area unless the occupants of the vehicle enter, use, or park in a developed
81.17campground, overnight, or day-use area.

81.18    Sec. 18. Minnesota Statutes 2012, section 85.055, subdivision 1, is amended to read:
81.19    Subdivision 1. Fees. The fee for state park permits for:
81.20(1) an annual use of state parks is $25;
81.21(2) a second or subsequent vehicle state park permit is $18;
81.22(3) a state park permit valid for one day is $5;
81.23(4) a daily vehicle state park permit for groups is $3;
81.24(5) an annual permit for motorcycles is $20;
81.25(6) an employee's state park permit is without charge; and
81.26(7) a state park permit for disabled persons with disabilities under section 85.053,
81.27subdivision 7
, clauses (1) and (2) to (3), is $12.
81.28The fees specified in this subdivision include any sales tax required by state law.

81.29    Sec. 19. Minnesota Statutes 2012, section 85.055, subdivision 2, is amended to read:
81.30    Subd. 2. Fee deposit and appropriation. The fees collected under this section shall
81.31be deposited in the natural resources fund and credited to the state parks account. Money
81.32in the account, except for the electronic licensing system commission established by the
81.33commissioner under section 84.027, subdivision 15, and the state park reservation system
82.1fee established by the commissioner under section 85.052, subdivisions 5 and 6, is available
82.2for appropriation to the commissioner to operate and maintain the state park system.

82.3    Sec. 20. Minnesota Statutes 2012, section 85.42, is amended to read:
82.485.42 USER FEE; VALIDITY.
82.5(a) The fee for an annual cross-country ski pass is $19 for an individual age 16 and
82.6over. The fee for a three-year pass is $54 for an individual age 16 and over. This fee
82.7shall be collected at the time the pass is purchased. Three-year passes are valid for three
82.8years beginning the previous July 1. Annual passes are valid for one year beginning
82.9the previous July 1.
82.10(b) The cost for a daily cross-country skier pass is $5 for an individual age 16 and
82.11over. This fee shall be collected at the time the pass is purchased. The daily pass is valid
82.12only for the date designated on the pass form.
82.13(c) A pass must be signed by the skier across the front of the pass to be valid and
82.14becomes nontransferable on signing.
82.15(d) The commissioner and agents shall issue a duplicate pass to a person whose pass
82.16is lost or destroyed, using the process established under section 97A.405, subdivision 3,
82.17and rules adopted thereunder. The fee for a duplicate cross-country ski pass is $2.

82.18    Sec. 21. Minnesota Statutes 2012, section 89.0385, is amended to read:
82.1989.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST
82.20CERTIFICATION.
82.21(a) After each fiscal year, The commissioner shall certify the total costs incurred for
82.22forest management, forest improvement, and road improvement on state-managed lands
82.23during that each fiscal year. The commissioner shall distribute forest management receipts
82.24credited to various accounts according to this section.
82.25(b) The amount of the certified costs incurred for forest management activities on
82.26state lands shall be transferred from the account where receipts are deposited to the forest
82.27management investment account in the natural resources fund, except for those costs
82.28certified under section 16A.125. Transfers may occur quarterly, based on quarterly cost and
82.29revenue reports, throughout the fiscal year, with final certification and reconciliation after
82.30each fiscal year. Transfers in a fiscal year cannot exceed receipts credited to the account.

82.31    Sec. 22. Minnesota Statutes 2012, section 90.01, subdivision 4, is amended to read:
82.32    Subd. 4. Scaler. "Scaler" means a qualified bonded person designated by the
82.33commissioner to measure timber and cut forest products.

83.1    Sec. 23. Minnesota Statutes 2012, section 90.01, subdivision 5, is amended to read:
83.2    Subd. 5. State appraiser. "State appraiser" means an employee of the department
83.3designated by the commissioner to appraise state lands, which includes, but is not limited
83.4to, timber and other forest resource products, for volume, quality, and value.

83.5    Sec. 24. Minnesota Statutes 2012, section 90.01, subdivision 6, is amended to read:
83.6    Subd. 6. Timber. "Timber" means trees, shrubs, or woody plants, that will produce
83.7forest products of value whether standing or down, and including but not limited to logs,
83.8sawlogs, posts, poles, bolts, pulpwood, cordwood, fuelwood, woody biomass, lumber,
83.9 and woody decorative material.

83.10    Sec. 25. Minnesota Statutes 2012, section 90.01, subdivision 8, is amended to read:
83.11    Subd. 8. Permit holder. "Permit holder" means the person holding who is the
83.12signatory of a permit to cut timber on state lands.

83.13    Sec. 26. Minnesota Statutes 2012, section 90.01, subdivision 11, is amended to read:
83.14    Subd. 11. Effective permit. "Effective permit" means a permit for which the
83.15commissioner has on file full or partial surety security as required by section 90.161, or
83.16 90.162, 90.163, or 90.173 or, in the case of permits issued according to section 90.191 or
83.1790.195 , the commissioner has received a down payment equal to the full appraised value.

83.18    Sec. 27. Minnesota Statutes 2012, section 90.031, subdivision 4, is amended to read:
83.19    Subd. 4. Timber rules. The Executive Council may formulate and establish, from
83.20time to time, rules it deems advisable for the transaction of timber business of the state,
83.21including approval of the sale of timber on any tract in a lot exceeding 6,000 12,000 cords
83.22in volume when the sale is in the best interests of the state, and may abrogate, modify,
83.23or suspend rules at its pleasure.

83.24    Sec. 28. Minnesota Statutes 2012, section 90.041, subdivision 2, is amended to read:
83.25    Subd. 2. Trespass on state lands. The commissioner may compromise and settle,
83.26with the approval of notification to the attorney general, upon terms the commissioner
83.27deems just, any claim of the state for casual and involuntary trespass upon state lands or
83.28timber; provided that no claim shall be settled for less than the full value of all timber
83.29or other materials taken in casual trespass or the full amount of all actual damage or
83.30loss suffered by the state as a result. Upon request, the commissioner shall advise the
83.31Executive Council of any information acquired by the commissioner concerning any
84.1trespass on state lands, giving all details and names of witnesses and all compromises and
84.2settlements made under this subdivision.

84.3    Sec. 29. Minnesota Statutes 2012, section 90.041, subdivision 5, is amended to read:
84.4    Subd. 5. Forest improvement contracts. The commissioner may contract as part
84.5of the timber sale with the purchaser of state timber at either informal or auction sale
84.6for the following forest improvement work to be done on the land included within the
84.7sale area:. Forest improvement work may include activities relating to preparation of
84.8the site for seeding or planting of seedlings or trees, seeding or planting of seedlings or
84.9trees, and other activities relating related to forest regeneration or deemed necessary by
84.10the commissioner to accomplish forest management objectives, including those related
84.11to water quality protection, trail development, and wildlife habitat enhancement. A
84.12contract issued under this subdivision is not subject to the competitive bidding provisions
84.13of chapter 16C and is exempt from the contract approval provisions of section 16C.05,
84.14subdivision 2
. The bid value received in the sale of the timber and the contract bid
84.15cost of the improvement work may be combined and the total value may be considered
84.16by the commissioner in awarding forest improvement contracts under this section.
84.17The commissioner may refuse to accept any and all bids received and cancel a forest
84.18improvement contract sale for good and sufficient reasons.

84.19    Sec. 30. Minnesota Statutes 2012, section 90.041, subdivision 6, is amended to read:
84.20    Subd. 6. Sale of damaged timber. The commissioner may sell at public auction
84.21timber that has been damaged by fire, windstorm, flood, insect, disease, or other natural
84.22cause on notice that the commissioner considers reasonable when there is a high risk that
84.23the salvage value of the timber would be lost.

84.24    Sec. 31. Minnesota Statutes 2012, section 90.041, subdivision 9, is amended to read:
84.25    Subd. 9. Reoffering unsold timber. To maintain and enhance forest ecosystems on
84.26state forest lands, The commissioner may reoffer timber tracts remaining unsold under the
84.27provisions of section 90.101 below appraised value at public auction with the required
84.2830-day notice under section 90.101, subdivision 2.

84.29    Sec. 32. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
84.30to read:
84.31    Subd. 10. Fees. (a) The commissioner may establish a fee schedule that covers the
84.32commissioner's cost of issuing, administering, and processing various permits, permit
85.1modifications, transfers, assignments, amendments, and other transactions necessary to the
85.2administration of activities under this chapter.
85.3(b) A fee established under this subdivision is not subject to the rulemaking
85.4provisions of chapter 14 and section 14.386 does not apply. The commissioner may
85.5establish fees under this subdivision notwithstanding section 16A.1283.

85.6    Sec. 33. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
85.7to read:
85.8    Subd. 11. Debarment. The commissioner may debar a permit holder if the holder
85.9is convicted in Minnesota at the gross misdemeanor or felony level of criminal willful
85.10trespass, theft, fraud, or antitrust violation involving state, federal, county, or privately
85.11owned timber in Minnesota or convicted in any other state involving similar offenses and
85.12penalties for timber owned in that state. The commissioner shall cancel and repossess the
85.13permit directly involved in the prosecution of the crime. The commissioner shall cancel
85.14and repossess all other state timber permits held by the permit holder after taking from
85.15all security deposits money to which the state is entitled. The commissioner shall return
85.16the remainder of the security deposits, if any, to the permit holder. The debarred permit
85.17holder is prohibited from bidding, possessing, or being employed on any state timber
85.18permit during the period of debarment. The period of debarment is not less than one year
85.19or greater than three years. The duration of the debarment is based on the severity of the
85.20violation, past history of compliance with timber permits, and the amount of loss incurred
85.21by the state arising from violations of timber permits.

85.22    Sec. 34. Minnesota Statutes 2012, section 90.045, is amended to read:
85.2390.045 APPRAISAL STANDARDS.
85.24By July 1, 1983, the commissioner shall establish specific timber appraisal standards
85.25according to which all timber appraisals will be conducted under this chapter. The
85.26standards shall include a specification of the maximum allowable appraisal sampling error,
85.27and including the procedures for tree defect allowance, tract area estimation, product
85.28volume estimation, and product value determination. The timber appraisal standards shall
85.29be included in each edition of the timber sales manual published by the commissioner. In
85.30addition to the duties pursuant to section 90.061, every state appraiser shall work within
85.31the guidelines of the timber appraisal standards. The standards shall not be subject to
85.32the rulemaking provisions of chapter 14.

85.33    Sec. 35. Minnesota Statutes 2012, section 90.061, subdivision 8, is amended to read:
86.1    Subd. 8. Appraiser authority; form of documents. State appraisers are
86.2empowered, with the consent of the commissioner, to perform any scaling, and generally
86.3to supervise the cutting and removal of timber and forest products on or from state lands
86.4so far as may be reasonably necessary to insure compliance with the terms of the permits
86.5or other contracts governing the same and protect the state from loss.
86.6The form of appraisal reports, records, and notes to be kept by state appraisers
86.7shall be as the commissioner prescribes.

86.8    Sec. 36. Minnesota Statutes 2012, section 90.101, subdivision 1, is amended to read:
86.9    Subdivision 1. Sale requirements. The commissioner may sell the timber on any
86.10tract of state land and may determine the number of sections or fractional sections of land
86.11to be included in the permit area covered by any one permit issued to the purchaser of
86.12timber on state lands, or in any one contract or other instrument relating thereto. No
86.13timber shall be sold, except (1) to the highest responsible bidder at public auction, or
86.14(2) if unsold at public auction, the commissioner may offer the timber for private sale
86.15for a period of no more than six months one year after the public auction to any person
86.16 responsible bidder who pays the appraised value for the timber. The minimum price shall
86.17be the appraised value as fixed by the report of the state appraiser. Sales may include tracts
86.18in more than one contiguous county or forestry administrative area and shall be held either
86.19in the county or forestry administrative area in which the tract is located or in an adjacent
86.20county or forestry administrative area that is nearest the tract offered for sale or that is
86.21most accessible to potential bidders. In adjoining counties or forestry administrative areas,
86.22sales may not be held less than two hours apart.

86.23    Sec. 37. Minnesota Statutes 2012, section 90.121, is amended to read:
86.2490.121 INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000
86.25CORDS.
86.26(a) The commissioner may sell the timber on any tract of state land in lots not
86.27exceeding 3,000 cords in volume, in the same manner as timber sold at public auction under
86.28section 90.101, and related laws, subject to the following special exceptions and limitations:
86.29(1) the commissioner shall offer all tracts authorized for sale by this section
86.30separately from the sale of tracts of state timber made pursuant to section 90.101;
86.31(2) no bidder may be awarded more than 25 percent of the total tracts offered at the
86.32first round of bidding unless fewer than four tracts are offered, in which case not more than
86.33one tract shall be awarded to one bidder. Any tract not sold at public auction may be offered
87.1for private sale as authorized by section 90.101, subdivision 1, 30 days after the auction to
87.2persons responsible bidders eligible under this section at the appraised value; and
87.3(3) no sale may be made to a person responsible bidder having more than 30
87.4employees. For the purposes of this clause, "employee" means an individual working in
87.5the timber or wood products industry for salary or wages on a full-time or part-time basis.
87.6(b) The auction sale procedure set forth in this section constitutes an additional
87.7alternative timber sale procedure available to the commissioner and is not intended to
87.8replace other authority possessed by the commissioner to sell timber in lots of 3,000
87.9cords or less.
87.10(c) Another bidder or the commissioner may request that the number of employees a
87.11bidder has pursuant to paragraph (a), clause (3), be confirmed by signed affidavit if there is
87.12evidence that the bidder may be ineligible due to exceeding the employee threshold. The
87.13commissioner shall request information from the commissioners of labor and industry and
87.14employment and economic development including the premiums paid by the bidder in
87.15question for workers' compensation insurance coverage for all employees of the bidder.
87.16The commissioner shall review the information submitted by the commissioners of labor
87.17and industry and employment and economic development and make a determination based
87.18on that information as to whether the bidder is eligible. A bidder is considered eligible and
87.19may participate in intermediate auctions until determined ineligible under this paragraph.

87.20    Sec. 38. Minnesota Statutes 2012, section 90.145, is amended to read:
87.2190.145 PURCHASER QUALIFICATIONS AND, REGISTRATION, AND
87.22REQUIREMENTS.
87.23    Subdivision 1. Purchaser qualifications requirements. (a) In addition to any other
87.24requirements imposed by this chapter, the purchaser of a state timber permit issued under
87.25section 90.151 must meet the requirements in paragraphs (b) to (d) (e).
87.26(b) The purchaser and or the purchaser's agents, employees, subcontractors, and
87.27assigns conducting logging operations on the timber permit must comply with general
87.28industry safety standards for logging adopted by the commissioner of labor and industry
87.29under chapter 182. The commissioner of natural resources shall may require a purchaser
87.30to provide proof of compliance with the general industry safety standards.
87.31(c) The purchaser and or the purchaser's agents, subcontractors, and assigns
87.32conducting logging operations on the timber permit must comply with the mandatory
87.33insurance requirements of chapter 176. The commissioner shall may require a purchaser
87.34to provide a copy of the proof of insurance required by section 176.130 before the start of
87.35harvesting operations on any permit.
88.1(d) Before the start of harvesting operations on any permit, the purchaser must certify
88.2that a foreperson or other designated employee who has a current certificate of completion,
88.3 which includes instruction in site-level forest management guidelines or best management
88.4practices, from the Minnesota Logger Education Program (MLEP), the Wisconsin Forest
88.5Industry Safety and Training Alliance (FISTA), or any similar continuous education
88.6program acceptable to the commissioner, is supervising active logging operations.
88.7(e) The purchaser and the purchaser's agents, employees, subcontractors, and assigns
88.8who will be involved with logging or scaling state timber must be in compliance with
88.9this chapter.
88.10    Subd. 2. Purchaser preregistration registration. To facilitate the sale of permits
88.11issued under section 90.151, the commissioner may establish a purchaser preregistration
88.12 registration system to verify the qualifications of a person as a responsible bidder to
88.13purchase a timber permit. Any system implemented by the commissioner shall be limited
88.14in scope to only that information that is required for the efficient administration of the
88.15purchaser qualification provisions requirements of this chapter and shall conform with the
88.16requirements of chapter 13. The registration system established under this subdivision is
88.17not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.

88.18    Sec. 39. Minnesota Statutes 2012, section 90.151, subdivision 1, is amended to read:
88.19    Subdivision 1. Issuance; expiration. (a) Following receipt of the down payment
88.20for state timber required under section 90.14 or 90.191, the commissioner shall issue a
88.21numbered permit to the purchaser, in a form approved by the attorney general, by the
88.22terms of which the purchaser shall be authorized to enter upon the land, and to cut and
88.23remove the timber therein described as designated for cutting in the report of the state
88.24appraiser, according to the provisions of this chapter. The permit shall be correctly
88.25dated and executed by the commissioner and signed by the purchaser. If a permit is not
88.26signed by the purchaser within 60 45 days from the date of purchase, the permit cancels
88.27and the down payment for timber required under section 90.14 forfeits to the state. The
88.28commissioner may grant an additional period for the purchaser to sign the permit, not to
88.29exceed five ten business days, provided the purchaser pays a $125 $200 penalty fee.
88.30    (b) The permit shall expire no later than five years after the date of sale as the
88.31commissioner shall specify or as specified under section 90.191, and the timber shall
88.32be cut and removed within the time specified therein. All cut timber, equipment, and
88.33buildings not removed from the land within 90 days after expiration of the permit shall
88.34become the property of the state. If additional time is needed, the permit holder must
88.35request, prior to the expiration date, and may be granted, for good and sufficient reasons,
89.1up to 90 additional days for the completion of skidding, hauling, and removing all
89.2equipment and buildings. All cut timber, equipment, and buildings not removed from the
89.3land after expiration of the permit becomes the property of the state.
89.4    (c) The commissioner may grant an additional period of time not to exceed 120 240
89.5 days for the removal of cut timber, equipment, and buildings upon receipt of such a written
89.6 request by the permit holder for good and sufficient reasons. The commissioner may grant
89.7a second period of time not to exceed 120 days for the removal of cut timber, equipment,
89.8and buildings upon receipt of a request by the permit holder for hardship reasons only.
89.9 The permit holder may combine in the written request under this paragraph the request
89.10for additional time under paragraph (b).

89.11    Sec. 40. Minnesota Statutes 2012, section 90.151, subdivision 2, is amended to read:
89.12    Subd. 2. Permit requirements. The permit shall state the amount of timber
89.13estimated for cutting on the land, the estimated value thereof, and the price at which it is
89.14sold in units of per thousand feet, per cord, per piece, per ton, or by whatever description
89.15sold, and shall specify that all landings of cut products shall be legibly marked with the
89.16assigned permit number. The permit shall provide for the continuous identification
89.17and control of the cut timber from the time of cutting until delivery to the consumer.
89.18The permit shall provide that failure to continuously identify the timber as specified in
89.19the permit constitutes trespass.

89.20    Sec. 41. Minnesota Statutes 2012, section 90.151, subdivision 3, is amended to read:
89.21    Subd. 3. Security provisions. The permit shall contain such provisions as may be
89.22necessary to secure to the state the title of all timber cut thereunder wherever found until
89.23full payment therefor and until all provisions of the permit have been fully complied
89.24with. The permit shall provide that from the date the same becomes effective cutting
89.25commences until the expiration thereof of the permit, including all extensions, the
89.26purchaser and successors in interest shall be liable to the state for the full permit price of
89.27all timber covered thereby, notwithstanding any subsequent damage or injury thereto or
89.28trespass thereon or theft thereof, and without prejudice to the right of the state to pursue
89.29such timber and recover the value thereof anywhere prior to the payment therefor in full to
89.30the state. If an effective permit is forfeited prior to any cutting activity, the purchaser is
89.31liable to the state for a sum equal to the down payment and bid guarantee. Upon recovery
89.32from any person other than the permit holder, the permit holder shall be deemed released
89.33to the extent of the net amount, after deducting all expenses of collecting same, recovered
89.34by the state from such other person.

90.1    Sec. 42. Minnesota Statutes 2012, section 90.151, subdivision 4, is amended to read:
90.2    Subd. 4. Permit terms. Once a permit becomes effective and cutting commences,
90.3the permit holder is liable to the state for the permit price for all timber required to be cut,
90.4including timber not cut. The permit shall provide that all timber sold or designated for
90.5cutting shall be cut without in such a manner so as not to cause damage to other timber;
90.6that the permit holder shall remove all timber authorized and designated to be cut under
90.7the permit; that timber sold by board measure identified in the permit, but later determined
90.8by the commissioner not to be convertible into board the permit's measure, shall be paid
90.9for by the piece or cord or other unit of measure according to the size, species, or value, as
90.10may be determined by the commissioner; and that all timber products, except as specified
90.11by the commissioner, shall be scaled and the final settlement for the timber cut shall be
90.12made on this scale; and that the permit holder shall pay to the state the permit price for
90.13all timber authorized to be cut, including timber not cut.

90.14    Sec. 43. Minnesota Statutes 2012, section 90.151, subdivision 6, is amended to read:
90.15    Subd. 6. Notice and approval required. The permit shall provide that the permit
90.16holder shall not start cutting any state timber nor clear building sites landings nor logging
90.17roads until the commissioner has been notified and has given prior approval to such
90.18cutting operations. Approval shall not be granted until the permit holder has completed
90.19a presale conference with the state appraiser designated to supervise the cutting. The
90.20permit holder shall also give prior notice whenever permit operations are to be temporarily
90.21halted, whenever permit operations are to be resumed, and when permit operations are to
90.22be completed.

90.23    Sec. 44. Minnesota Statutes 2012, section 90.151, subdivision 7, is amended to read:
90.24    Subd. 7. Liability for timber cut in trespass. The permit shall provide that the
90.25permit holder shall pay the permit price value for any timber sold which is negligently
90.26destroyed or damaged by the permit holder in cutting or removing other timber sold. If the
90.27permit holder shall cut or remove or negligently destroy or damage any timber upon the
90.28land described, not sold under the permit, except such timber as it may be necessary to cut
90.29and remove in the construction of necessary logging roads and landings approved as to
90.30location and route by the commissioner, such timber shall be deemed to have been cut in
90.31trespass. The permit holder shall be liable for any such timber and recourse may be had
90.32upon the bond security deposit.

90.33    Sec. 45. Minnesota Statutes 2012, section 90.151, subdivision 8, is amended to read:
91.1    Subd. 8. Suspension; cancellation. The permit shall provide that the commissioner
91.2shall have the power to order suspension of all operations under the permit when in the
91.3commissioner's judgment the conditions thereof have not been complied with and any
91.4timber cut or removed during such suspension shall be deemed to have been cut in trespass;
91.5that the commissioner may cancel the permit at any time when in the commissioner's
91.6judgment the conditions thereof have not been complied with due to a breach of the permit
91.7conditions and such cancellation shall constitute repossession of the timber by the state;
91.8that the permit holder shall remove equipment and buildings from such land within 90 days
91.9after such cancellation; that, if the purchaser at any time fails to pay any obligations to the
91.10state under any other permits, any or all permits may be canceled; and that any timber cut
91.11or removed in violation of the terms of the permit or of any law shall constitute trespass.

91.12    Sec. 46. Minnesota Statutes 2012, section 90.151, subdivision 9, is amended to read:
91.13    Subd. 9. Slashings disposal. The permit shall provide that the permit holder shall
91.14burn or otherwise dispose of or treat all slashings or other refuse resulting from cutting
91.15operations, as specified in the permit, in the manner now or hereafter provided by law.

91.16    Sec. 47. Minnesota Statutes 2012, section 90.161, is amended to read:
91.1790.161 SURETY BONDS FOR AUCTION SECURITY DEPOSITS
91.18REQUIRED FOR EFFECTIVE TIMBER PERMITS.
91.19    Subdivision 1. Bond Security deposit required. (a) Except as otherwise provided
91.20by law, the purchaser of any state timber, before any timber permit becomes effective for
91.21any purpose, shall give a good and valid bond security in the form of cash; a certified
91.22check; a cashier's check; a postal, bank, or express money order; a corporate surety bond;
91.23or an irrevocable bank letter of credit to the state of Minnesota equal to the value of all
91.24timber covered or to be covered by the permit, as shown by the sale price bid and the
91.25appraisal report as to quantity, less the amount of any payments pursuant to sections
91.26 section 90.14 and 90.163.
91.27(b) The bond security deposit shall be conditioned upon the faithful performance
91.28by the purchaser and successors in interest of all terms and conditions of the permit and
91.29all requirements of law in respect to timber sales. The bond security deposit shall be
91.30approved in writing by the commissioner and filed for record in the commissioner's office.
91.31(c) In the alternative to cash and bond requirements, but upon the same conditions,
91.32 A purchaser may post bond for 100 percent of the purchase price and request refund of the
91.33amount of any payments pursuant to sections section 90.14 and 90.163. The commissioner
91.34may credit the refund to any other permit held by the same permit holder if the permit is
92.1delinquent as provided in section 90.181, subdivision 2, or may credit the refund to any
92.2other permit to which the permit holder requests that it be credited.
92.3(d) In the event of a default, the commissioner may take from the deposit the sum of
92.4money to which the state is entitled. The commissioner shall return the remainder of the
92.5deposit, if any, to the person making the deposit. When cash is deposited as security, it
92.6shall be applied to the amount due when a statement is prepared and transmitted to the
92.7permit holder according to section 90.181. Any balance due to the state shall be shown on
92.8the statement and shall be paid as provided in section 90.181. Any amount of the deposit
92.9in excess of the amount determined to be due according to section 90.181 shall be returned
92.10to the permit holder when a final statement is transmitted under section 90.181. All or
92.11part of a cash deposit may be withheld from application to an amount due on a nonfinal
92.12statement if it appears that the total amount due on the permit will exceed the bid price.
92.13(e) If an irrevocable bank letter of credit is provided as security under paragraph
92.14(a), at the written request of the permittee, the commissioner shall annually allow the
92.15amount of the bank letter of credit to be reduced by an amount proportionate to the value
92.16of timber that has been harvested and for which the state has received payment under the
92.17timber permit. The remaining amount of the bank letter of credit after a reduction under
92.18this paragraph must not be less than the value of the timber remaining to be harvested
92.19under the timber permit.
92.20(f) If cash; a certified check; a cashier's check; a personal check; or a postal, bank, or
92.21express money order is provided as security under paragraph (a) and no cutting of state
92.22timber has taken place on the permit, the commissioner may credit the security provided,
92.23less any deposit required under section 90.14, to any other permit to which the permit
92.24holder requests in writing that it be credited.
92.25    Subd. 2. Failure to bond provide security deposit. If bond the security deposit is
92.26not furnished, no harvesting may occur and the down payment for timber 15 percent of the
92.27permit's purchase price shall forfeit to the state when the permit expires.
92.28    Subd. 3. Subrogation. In case of default When security is provided by surety
92.29bond and the permit holder defaults in payment by the permit holder, the surety upon the
92.30bond shall make payment in full to the state of all sums of money due under such permit;
92.31and thereupon such surety shall be deemed immediately subrogated to all the rights of
92.32the state in the timber so paid for; and such subrogated party may pursue the timber and
92.33recover therefor, or have any other appropriate relief in relation thereto which the state
92.34might or could have had if such surety had not made such payment. No assignment or
92.35other writing on the part of the state shall be necessary to make such subrogation effective,
92.36but the certificate signed by and bearing the official seal of the commissioner, showing the
93.1amount of such timber, the lands from which it was cut or upon which it stood, and the
93.2amount paid therefor, shall be prima facie evidence of such facts.
93.3    Subd. 4. Change of security. Prior to any harvest cutting activity, or activities
93.4incidental to the preparation for harvest, a purchaser having posted a bond security deposit
93.5 for 100 percent of the purchase price of a sale may request the release of the bond security
93.6 and the commissioner shall grant the release upon cash payment to the commissioner of
93.715 percent of the appraised value of the sale, plus eight percent interest on the appraised
93.8value of the sale from the date of purchase to the date of release while retaining, or upon
93.9repayment of, the permit's down payment and bid guarantee deposit requirement.
93.10    Subd. 5. Return of security. Any security required under this section shall be
93.11returned to the purchaser within 60 days after the final scale.

93.12    Sec. 48. Minnesota Statutes 2012, section 90.162, is amended to read:
93.1390.162 ALTERNATIVE TO BOND OR DEPOSIT REQUIREMENTS
93.14 SECURING TIMBER PERMITS WITH CUTTING BLOCKS.
93.15In lieu of the bond or cash security deposit equal to the value of all timber covered
93.16by the permit required by section 90.161 or 90.173, a purchaser of state timber may elect
93.17in writing on a form prescribed by the attorney general to give good and valid surety to the
93.18state of Minnesota equal to the purchase price for any designated cutting block identified
93.19on the permit before the date the purchaser enters upon the land to begin harvesting the
93.20timber on the designated cutting block.

93.21    Sec. 49. [90.164] TIMBER PERMIT DEVELOPMENT OPTION.
93.22With the completion of the presale conference requirement under section 90.151,
93.23subdivision 6, a permit holder may access the permit area in advance of the permit being
93.24fully secured as required by section 90.161, for the express purpose of clearing approved
93.25landings and logging roads. No cutting of state timber except that incidental to the clearing
93.26of approved landings and logging roads is allowed under this section.

93.27    Sec. 50. Minnesota Statutes 2012, section 90.171, is amended to read:
93.2890.171 ASSIGNMENT OF AUCTION TIMBER PERMITS.
93.29Any permit sold at public auction may be assigned upon written approval of the
93.30commissioner. The assignment of any permit shall be signed and acknowledged by the
93.31permit holder. The commissioner shall not approve any assignment until the assignee has
93.32been determined to meet the qualifications of a responsible bidder and has given to the state
93.33a bond security deposit which shall be substantially in the form of, and shall be deemed
94.1of the same effect as, the bond security deposit required of the original purchaser. The
94.2commissioner may accept the an agreement of the assignee and any corporate surety upon
94.3such an original bond, substituting the assignee in the place of such the original purchaser
94.4and continuing such the original bond in full force and effect, as to the assignee. Thereupon
94.5but not otherwise the permit holder making the assignment shall be released from all
94.6liability arising or accruing from actions taken after the assignment became effective.

94.7    Sec. 51. Minnesota Statutes 2012, section 90.181, subdivision 2, is amended to read:
94.8    Subd. 2. Deferred payments. (a) If the amount of the statement is not paid within
94.930 days of the date thereof, it shall bear interest at the rate determined pursuant to section
94.1016A.124 , except that the purchaser shall not be required to pay interest that totals $1 or
94.11less. If the amount is not paid within 60 days, the commissioner shall place the account in
94.12the hands of the commissioner of revenue according to chapter 16D, who shall proceed to
94.13collect the same. When deemed in the best interests of the state, the commissioner shall
94.14take possession of the timber for which an amount is due wherever it may be found and
94.15sell the same informally or at public auction after giving reasonable notice.
94.16(b) The proceeds of the sale shall be applied, first, to the payment of the expenses
94.17of seizure and sale; and, second, to the payment of the amount due for the timber, with
94.18interest; and the surplus, if any, shall belong to the state; and, in case a sufficient amount is
94.19not realized to pay these amounts in full, the balance shall be collected by the attorney
94.20general. Neither payment of the amount, nor the recovery of judgment therefor, nor
94.21satisfaction of the judgment, nor the seizure and sale of timber, shall release the sureties
94.22on any bond security deposit given pursuant to this chapter, or preclude the state from
94.23afterwards claiming that the timber was cut or removed contrary to law and recovering
94.24damages for the trespass thereby committed, or from prosecuting the offender criminally.

94.25    Sec. 52. Minnesota Statutes 2012, section 90.191, subdivision 1, is amended to read:
94.26    Subdivision 1. Sale requirements. The commissioner may sell the timber on any
94.27tract of state land in lots not exceeding 500 cords in volume, without formalities but for
94.28not less than the full appraised value thereof, to any person. No sale shall be made under
94.29this section to any person holding two more than four permits issued hereunder which are
94.30still in effect;. except that (1) a partnership as defined in chapter 323, which may include
94.31spouses but which shall provide evidence that a partnership exists, may be holding two
94.32permits for each of not more than three partners who are actively engaged in the business
94.33of logging or who are the spouses of persons who are actively engaged in the business of
94.34logging with that partnership; and (2) a corporation, a majority of whose shares and voting
95.1power are owned by natural persons related to each other within the fourth degree of
95.2kindred according to the rules of the civil law or their spouses or estates, may be holding
95.3two permits for each of not more than three shareholders who are actively engaged in the
95.4business of logging or who are the spouses of persons who are actively engaged in the
95.5business of logging with that corporation.

95.6    Sec. 53. Minnesota Statutes 2012, section 90.193, is amended to read:
95.790.193 EXTENSION OF TIMBER PERMITS.
95.8The commissioner may, in the case of an exceptional circumstance beyond the
95.9control of the timber permit holder which makes it unreasonable, impractical, and not
95.10feasible to complete cutting and removal under the permit within the time allowed, grant
95.11an one regular extension of for one year. A written request for the regular extension must
95.12be received by the commissioner before the permit expires. The request must state the
95.13reason the extension is necessary and be signed by the permit holder. An interest rate of
95.14eight percent may be charged for the period of extension.

95.15    Sec. 54. Minnesota Statutes 2012, section 90.195, is amended to read:
95.1690.195 SPECIAL USE AND PRODUCT PERMIT.
95.17(a) The commissioner may issue a permit to salvage or cut not to exceed 12 cords of
95.18fuelwood per year for personal use from either or both of the following sources: (1) dead,
95.19down, and diseased damaged trees; (2) other trees that are of negative value under good
95.20forest management practices. The permits may be issued for a period not to exceed one
95.21year. The commissioner shall charge a fee for the permit that shall cover the commissioner's
95.22cost of issuing the permit and as provided under section 90.041, subdivision 10. The fee
95.23 shall not exceed the current market value of fuelwood of similar species, grade, and volume
95.24that is being sold in the area where the salvage or cutting is authorized under the permit.
95.25(b) The commissioner may issue a special product permit under section 89.42 for
95.26commercial use, which may include incidental volumes of boughs, gravel, hay, biomass,
95.27and other products derived from forest management activities. The value of the products
95.28is the current market value of the products that are being sold in the area. The permit may
95.29be issued for a period not to exceed one year and the commissioner shall charge a fee for
95.30the permit as provided under section 90.041, subdivision 10.
95.31(c) The commissioner may issue a special use permit for incidental volumes of
95.32timber from approved right-of-way road clearing across state land for the purpose of
95.33accessing a state timber permit. The permit shall include the volume and value of timber
95.34to be cleared and may be issued for a period not to exceed one year. A presale conference
96.1as required under section 90.151, subdivision 6, must be completed before the start of
96.2any activities under the permit.

96.3    Sec. 55. Minnesota Statutes 2012, section 90.201, subdivision 2a, is amended to read:
96.4    Subd. 2a. Prompt payment of refunds. Any refund of cash that is due to a permit
96.5holder as determined on a final statement transmitted pursuant to section 90.181 or a
96.6refund of cash made pursuant to section 90.161, subdivision 1, or 90.173, paragraph
96.7(a)
, shall be paid to the permit holder according to section 16A.124 unless the refund is
96.8credited on another permit as provided in this chapter.

96.9    Sec. 56. Minnesota Statutes 2012, section 90.211, is amended to read:
96.1090.211 PURCHASE MONEY, WHEN FORFEITED.
96.11If the holder of an effective permit begins to cut and then fails to cut complete any
96.12part thereof of the permit before the expiration of the permit, the permit holder shall
96.13nevertheless pay the price therefor; but under no circumstances shall timber be cut after
96.14the expiration of the permit or extension thereof.

96.15    Sec. 57. Minnesota Statutes 2012, section 90.221, is amended to read:
96.1690.221 TIMBER SALES RECORDS.
96.17The commissioner shall keep timber sales records, including the description of each
96.18tract of land from which any timber is sold; the date of the report of the state appraisers;
96.19the kind, amount, and value of the timber as shown by such report; the date of the sale;
96.20the price for which the timber was sold; the name of the purchaser; the number, date
96.21of issuance and date of expiration of each permit; the date of any assignment of the
96.22permit; the name of the assignee; the dates of the filing and the amounts of the respective
96.23bonds security deposits by the purchaser and assignee; the names of the sureties thereon;
96.24the amount of timber taken from the land; the date of the report of the scaler and state
96.25appraiser; the names of the scaler and the state appraiser who scaled the timber; and the
96.26amount paid for such timber and the date of payment.

96.27    Sec. 58. Minnesota Statutes 2012, section 90.252, subdivision 1, is amended to read:
96.28    Subdivision 1. Consumer scaling. The commissioner may enter into an agreement
96.29with either a timber sale permittee, or the purchaser of the cut products, or both, so
96.30that the scaling of the cut timber and the collection of the payment for the same can be
96.31consummated by the consumer state. Such an agreement shall be approved as to form and
96.32content by the attorney general and shall provide for a bond or cash in lieu of a bond and
97.1such other safeguards as are necessary to protect the interests of the state. The scaling
97.2and payment collection procedure may be used for any state timber sale, except that no
97.3permittee who is also the consumer shall both cut and scale the timber sold unless such
97.4scaling is supervised by a state scaler.

97.5    Sec. 59. Minnesota Statutes 2012, section 90.301, subdivision 2, is amended to read:
97.6    Subd. 2. Seizure of unlawfully cut timber. The commissioner may take possession
97.7of any timber hereafter unlawfully cut upon or taken from any land owned by the state
97.8wherever found and may sell the same informally or at public auction after giving such
97.9notice as the commissioner deems reasonable and after deducting all the expenses of such
97.10sale the proceeds thereof shall be paid into the state treasury to the credit of the proper
97.11fund; and when any timber so unlawfully cut has been intermingled with any other timber
97.12or property so that it cannot be identified or plainly separated therefrom the commissioner
97.13may so seize and sell the whole quantity so intermingled and, in such case, the whole
97.14quantity of such timber shall be conclusively presumed to have been unlawfully taken
97.15from state land. When the timber unlawfully cut or removed from state land is so seized
97.16and sold, the seizure shall not in any manner relieve the trespasser who cut or removed, or
97.17caused the cutting or removal of, any such timber from the full liability imposed by this
97.18chapter for the trespass so committed, but the net amount realized from such sale shall
97.19be credited on whatever judgment is recovered against such trespasser, if the trespass
97.20was deemed to be casual and involuntary.

97.21    Sec. 60. Minnesota Statutes 2012, section 90.301, subdivision 4, is amended to read:
97.22    Subd. 4. Apprehension of trespassers; reward. The commissioner may offer a
97.23reward to be paid to a person giving to the proper authorities any information that leads to
97.24the conviction of a person violating this chapter. The reward is limited to the greater of
97.25$100 or ten percent of the single stumpage value of any timber unlawfully cut or removed.
97.26The commissioner shall pay the reward from funds appropriated for that purpose or from
97.27receipts from the sale of state timber. A reward shall not be paid to salaried forest officers,
97.28state appraisers, scalers, conservation officers, or licensed peace officers.

97.29    Sec. 61. Minnesota Statutes 2012, section 90.41, subdivision 1, is amended to read:
97.30    Subdivision 1. Violations and penalty. (a) Any state scaler or state appraiser who
97.31shall accept any compensation or gratuity for services as such from any other source
97.32except the state of Minnesota, or any state scaler, or other person authorized to scale state
97.33timber, or state appraiser, who shall make any false report, or insert in any such report any
98.1false statement, or shall make any such report without having examined the land embraced
98.2therein or without having actually been upon the land, or omit from any such report any
98.3statement required by law to be made therein, or who shall fail to report any known trespass
98.4committed upon state lands, or who shall conspire with any other person in any manner, by
98.5act or omission or otherwise, to defraud or unlawfully deprive the state of Minnesota of any
98.6land or timber, or the value thereof, shall be guilty of a felony. Any material discrepancy
98.7between the facts and the scale returned by any such person scaling timber for the state
98.8shall be considered prima facie evidence that such person is guilty of violating this statute.
98.9(b) No such appraiser or scaler who has been once discharged for cause shall ever
98.10again be appointed. This provision shall not apply to resignations voluntarily made by and
98.11accepted from such employees.

98.12    Sec. 62. Minnesota Statutes 2012, section 93.46, is amended by adding a subdivision
98.13to read:
98.14    Subd. 10. Scram mining. "Scram mining" means a mining operation that produces
98.15natural iron ore, natural iron ore concentrates, or taconite ore as described in section 93.20,
98.16subdivisions 12 to 18, from previously developed stockpiles, tailing basins, underground
98.17mine workings, or open pits and that involves no more than 80 acres of land not previously
98.18affected by mining, or more than 80 acres of land not previously affected by mining
98.19if the operator can demonstrate that impacts would be substantially the same as other
98.20scram operations. "Land not previously affected by mining" means land upon which mine
98.21wastes have not been deposited and land from which materials have not been removed in
98.22connection with the production or extraction of metallic minerals.

98.23    Sec. 63. Minnesota Statutes 2012, section 93.481, subdivision 3, is amended to read:
98.24    Subd. 3. Term of permit; amendment. (a) A permit issued by the commissioner
98.25pursuant to this section shall be granted for the term determined necessary by the
98.26commissioner for the completion of the proposed mining operation, including reclamation
98.27or restoration. The term of a scram mining permit for iron ore or taconite shall be
98.28determined in the same manner as a permit to mine for an iron ore or taconite mining
98.29operation.
98.30(b) A permit may be amended upon written application to the commissioner. A
98.31permit amendment application fee must be submitted with the written application. The
98.32permit amendment application fee is ten percent of the amount provided for in subdivision
98.331, clause (3), for an application for the applicable permit to mine. If the commissioner
98.34determines that the proposed amendment constitutes a substantial change to the permit,
99.1the person applying for the amendment shall publish notice in the same manner as for a
99.2new permit, and a hearing shall be held if written objections are received in the same
99.3manner as for a new permit. An amendment may be granted by the commissioner if the
99.4commissioner determines that lawful requirements have been met.

99.5    Sec. 64. [93.61] DRILL CORE LIBRARY ACCESS.
99.6Consistent with section 13.03, subdivision 3, a person shall not be required to pay a
99.7fee to access exploration data, exploration drill core data, mineral evaluation data, and
99.8mining data stored in the drill core library located in Hibbing, Minnesota, and managed
99.9by the commissioner of natural resources. The library shall be open during regular
99.10business hours.

99.11    Sec. 65. Minnesota Statutes 2012, section 97A.401, subdivision 3, is amended to read:
99.12    Subd. 3. Taking, possessing, and transporting wild animals for certain
99.13purposes. (a) Except as provided in paragraph (b), special permits may be issued without
99.14a fee to take, possess, and transport wild animals as pets and for scientific, educational,
99.15rehabilitative, wildlife disease prevention and control, and exhibition purposes. The
99.16commissioner shall prescribe the conditions for taking, possessing, transporting, and
99.17disposing of the wild animals.
99.18(b) A special permit may not be issued to take or possess wild or native deer for
99.19exhibition, propagation, or as pets.
99.20(c) Nonresident professional wildlife rehabilitators with a federal rehabilitation
99.21permit may possess and transport wildlife affected by oil spills.

99.22    Sec. 66. [103G.217] DRIFTLESS AREA WATER RESOURCES.
99.23(a) Groundwater discharge from natural springs and seepage areas in the driftless
99.24area of Minnesota, corresponding to the area of the state contained within the boundaries
99.25of the Department of Natural Resources Paleozoic Plateau Ecological Section, is vital to
99.26sustaining the coldwater aquatic ecosystems in the region, as well as the recreational,
99.27commercial, agricultural, environmental, aesthetic, and economic well-being of the region.
99.28(b) Within the boundaries of the Department of Natural Resources Paleozoic Plateau
99.29Ecological Section, no excavation or mining of silica sand, including, but not limited to,
99.30digging, excavating, mining, drilling, blasting, tunneling, dredging, stripping, or shafting,
99.31may occur within one mile of a designated trout stream as listed in Minnesota Rules unless
99.32a silica sand mining trout stream setback permit has been issued by the commissioner.
99.33(c) Before issuing a permit under this section, the commissioner shall:
100.1(1) require a project proposer to do a hydrogeological evaluation and collect any
100.2other information necessary to assess potential impacts to hydrogeological features,
100.3including private and public drinking water supply wells; and
100.4(2) identify appropriate setbacks from designated trout streams, springs, and other
100.5hydrogeologic features and any other restrictions necessary to protect trout stream water
100.6quantity, quality, and habitat.
100.7(d) The commissioner may assess the project proposer fees to cover the reasonable
100.8costs of duties performed under this section.
100.9EFFECTIVE DATE.This section is effective the day following final enactment
100.10and applies to new silica sand mining projects and projects for which environmental
100.11review documents have been noticed for public comments after April 30, 2013.

100.12    Sec. 67. Minnesota Statutes 2012, section 103G.265, subdivision 2, is amended to read:
100.13    Subd. 2. Diversion greater than 2,000,000 gallons per day. A water use permit
100.14or a plan that requires a permit or the commissioner's approval, involving a diversion of
100.15waters of the state of more than 2,000,000 gallons per day average in a 30-day period,
100.16to a place outside of this state or from the basin of origin within this state may not be
100.17granted or approved until:
100.18(1) a determination is made by the commissioner that the water remaining in the
100.19basin of origin will be adequate to meet the basin's water resources needs during the
100.20specified life of the diversion project and, for groundwater, the diversion meets the
100.21applicable standards under section 103G.287, subdivision 5; and
100.22(2) approval of the diversion is given by the legislature.

100.23    Sec. 68. Minnesota Statutes 2012, section 103G.265, subdivision 3, is amended to read:
100.24    Subd. 3. Consumptive use of more than 2,000,000 gallons per day. (a) Except
100.25as provided in paragraph (b), A water use permit or a plan that requires a permit or the
100.26commissioner's approval, involving a consumptive use of more than 2,000,000 gallons per
100.27day average in a 30-day period, may not be granted or approved until:
100.28(1) a determination is made by the commissioner that the water remaining in the
100.29basin of origin will be adequate to meet the basin's water resources needs during the
100.30specified life of the consumptive use and, for groundwater, the consumptive use meets the
100.31applicable standards under section 103G.287, subdivision 5; and
100.32(2) approval of the consumptive use is given by the legislature.
100.33(b) Legislative approval under paragraph (a), clause (2), is not required for a
100.34consumptive use in excess of 2,000,000 gallons per day average in a 30-day period for:
101.1(1) a domestic water supply, excluding industrial and commercial uses of a
101.2municipal water supply;
101.3(2) agricultural irrigation and processing of agricultural products;
101.4(3) construction and mine land dewatering;
101.5(4) pollution abatement or remediation; and
101.6(5) fish and wildlife enhancement projects using surface water sources.

101.7    Sec. 69. Minnesota Statutes 2012, section 103G.271, subdivision 1, is amended to read:
101.8    Subdivision 1. Permit required. (a) Except as provided in paragraph (b), the state,
101.9a person, partnership, or association, private or public corporation, county, municipality,
101.10or other political subdivision of the state may not appropriate or use waters of the state
101.11without a water use permit from the commissioner.
101.12(b) This section does not apply to use for a water supply by less than 25 persons
101.13for domestic purposes, except as required by the commissioner under section 103G.287,
101.14subdivision 4, paragraph (b).
101.15(c) The commissioner may issue a state general permit for appropriation of water to a
101.16governmental subdivision or to the general public. The general permit may authorize more
101.17than one project and the appropriation or use of more than one source of water. Water use
101.18permit processing fees and reports required under subdivision 6 and section 103G.281,
101.19subdivision 3
, are required for each project or water source that is included under a general
101.20permit, except that no fee is required for uses totaling less than 15,000,000 gallons annually.

101.21    Sec. 70. Minnesota Statutes 2012, section 103G.271, subdivision 4, is amended to read:
101.22    Subd. 4. Minimum use exemption and local approval of low use permits. (a)
101.23Except for local permits under section 103B.211, subdivision 4, a water use permit is not
101.24required for the appropriation and use of less than a minimum amount prescribed by the
101.25commissioner by rule 10,000 gallons per day and totaling no more than 1,000,000 gallons
101.26per year, except as required by the commissioner under section 103G.287, subdivision 4,
101.27paragraph (b).
101.28(b) Water use permits for more than the minimum amount but less than an
101.29intermediate amount prescribed by rule must be processed and approved at the municipal,
101.30county, or regional level based on rules adopted by the commissioner.
101.31(c) The rules must include provisions for reporting to the commissioner the amounts
101.32of water appropriated under local permits.

101.33    Sec. 71. Minnesota Statutes 2012, section 103G.287, subdivision 1, is amended to read:
102.1    Subdivision 1. Applications for groundwater appropriations; preliminary well
102.2construction approval. (a) Groundwater use permit applications are not complete until
102.3the applicant has supplied:
102.4(1) a water well record as required by section 103I.205, subdivision 9, information
102.5on the subsurface geologic formations penetrated by the well and the formation or aquifer
102.6that will serve as the water source, and geologic information from test holes drilled to
102.7locate the site of the production well;
102.8(2) the maximum daily, seasonal, and annual pumpage rates and volumes being
102.9requested;
102.10(3) information on groundwater quality in terms of the measures of quality
102.11commonly specified for the proposed water use and details on water treatment necessary
102.12for the proposed use;
102.13(4) an inventory of existing wells within 1-1/2 miles of the proposed production well
102.14or within the area of influence, as determined by the commissioner. The inventory must
102.15include information on well locations, depths, geologic formations, depth of the pump or
102.16intake, pumping and nonpumping water levels, and details of well construction; and
102.17(5) the results of an aquifer test completed according to specifications approved by
102.18the commissioner. The test must be conducted at the maximum pumping rate requested
102.19in the application and for a length of time adequate to assess or predict impacts to other
102.20wells and surface water and groundwater resources. The permit applicant is responsible
102.21for all costs related to the aquifer test, including the construction of groundwater and
102.22surface water monitoring installations, and water level readings before, during, and after
102.23the aquifer test; and
102.24(6) the results of any assessments conducted by the commissioner under paragraph (c).
102.25(b) The commissioner may waive an application requirement in this subdivision
102.26if the information provided with the application is adequate to determine whether the
102.27proposed appropriation and use of water is sustainable and will protect ecosystems, water
102.28quality, and the ability of future generations to meet their own needs.
102.29(c) The commissioner shall provide an assessment of a proposed well needing a
102.30groundwater appropriation permit. The commissioner shall evaluate the information
102.31submitted as required under section 103I.205, subdivision 1, paragraph (f), and determine
102.32whether the anticipated appropriation request is likely to meet the applicable requirements
102.33of this chapter. If the appropriation request is likely to meet applicable requirements, the
102.34commissioner shall provide the person submitting the information with a letter providing
102.35preliminary approval to construct the well.

103.1    Sec. 72. Minnesota Statutes 2012, section 103G.287, subdivision 4, is amended to read:
103.2    Subd. 4. Groundwater management areas. (a) The commissioner may designate
103.3groundwater management areas and limit total annual water appropriations and uses within
103.4a designated area to ensure sustainable use of groundwater that protects ecosystems, water
103.5quality, and the ability of future generations to meet their own needs. Water appropriations
103.6and uses within a designated management area must be consistent with a plan approved by
103.7the commissioner that addresses water conservation requirements and water allocation
103.8priorities established in section 103G.261.
103.9(b) Notwithstanding section 103G.271, subdivision 1, paragraph (b), and Minnesota
103.10Rules, within designated groundwater management areas, the commissioner may require
103.11general permits as specified in section 103G.271, subdivision 1, paragraph (c), for water
103.12users using less than 10,000 gallons per day or 1,000,000 gallons per year and water
103.13suppliers serving less than 25 persons for domestic purposes. The commissioner may
103.14waive the requirements under section 103G.281 for general permits issued under this
103.15paragraph, and the fee specified in section 103G.301, subdivision 2, paragraph (c), does
103.16not apply to general permits issued under this paragraph.

103.17    Sec. 73. Minnesota Statutes 2012, section 103G.287, subdivision 5, is amended to read:
103.18    Subd. 5. Interference with other wells Sustainability standard. The
103.19commissioner may issue water use permits for appropriation from groundwater only if
103.20the commissioner determines that the groundwater use is sustainable to supply the needs
103.21of future generations and the proposed use will not harm ecosystems, degrade water, or
103.22reduce water levels beyond the reach of public water supply and private domestic wells
103.23constructed according to Minnesota Rules, chapter 4725.

103.24    Sec. 74. Minnesota Statutes 2012, section 103I.205, subdivision 1, is amended to read:
103.25    Subdivision 1. Notification required. (a) Except as provided in paragraphs (d)
103.26and (e), a person may not construct a well until a notification of the proposed well on a
103.27form prescribed by the commissioner is filed with the commissioner with the filing fee in
103.28section 103I.208, and, when applicable, the person has met the requirements of paragraph
103.29(f). If after filing the well notification an attempt to construct a well is unsuccessful, a
103.30new notification is not required unless the information relating to the successful well
103.31has substantially changed.
103.32(b) The property owner, the property owner's agent, or the well contractor where a
103.33well is to be located must file the well notification with the commissioner.
104.1(c) The well notification under this subdivision preempts local permits and
104.2notifications, and counties or home rule charter or statutory cities may not require a
104.3permit or notification for wells unless the commissioner has delegated the permitting or
104.4notification authority under section 103I.111.
104.5(d) A person who is an individual that constructs a drive point well on property
104.6owned or leased by the individual for farming or agricultural purposes or as the individual's
104.7place of abode must notify the commissioner of the installation and location of the well.
104.8The person must complete the notification form prescribed by the commissioner and mail
104.9it to the commissioner by ten days after the well is completed. A fee may not be charged
104.10for the notification. A person who sells drive point wells at retail must provide buyers
104.11with notification forms and informational materials including requirements regarding
104.12wells, their location, construction, and disclosure. The commissioner must provide the
104.13notification forms and informational materials to the sellers.
104.14(e) A person may not construct a monitoring well until a permit is issued by the
104.15commissioner for the construction. If after obtaining a permit an attempt to construct a
104.16well is unsuccessful, a new permit is not required as long as the initial permit is modified
104.17to indicate the location of the successful well.
104.18(f) When the operation of a well will require an appropriation permit from the
104.19commissioner of natural resources, a person may not begin construction of the well until
104.20the person submits the following information to the commissioner of natural resources:
104.21(1) the location of the well;
104.22(2) the formation or aquifer that will serve as the water source;
104.23(3) the maximum daily, seasonal, and annual pumpage rates and volumes that will
104.24be requested in the appropriation permit; and
104.25(4) other information requested by the commissioner of natural resources that
104.26is necessary to conduct the preliminary assessment required under section 103G.287,
104.27subdivision 1, paragraph (c).
104.28The person may begin construction after receiving preliminary approval from the
104.29commissioner of natural resources.

104.30    Sec. 75. Minnesota Statutes 2012, section 114D.50, subdivision 4, is amended to read:
104.31    Subd. 4. Expenditures; accountability. (a) A project receiving funding from the
104.32clean water fund must meet or exceed the constitutional requirements to protect, enhance,
104.33and restore water quality in lakes, rivers, and streams and to protect groundwater and
104.34drinking water from degradation. Priority may be given to projects that meet more than
104.35one of these requirements. A project receiving funding from the clean water fund shall
105.1include measurable outcomes, as defined in section 3.303, subdivision 10, and a plan for
105.2measuring and evaluating the results. A project must be consistent with current science
105.3and incorporate state-of-the-art technology.
105.4(b) Money from the clean water fund shall be expended to balance the benefits
105.5across all regions and residents of the state.
105.6(c) A state agency or other recipient of a direct appropriation from the clean
105.7water fund must compile and submit all information for proposed and funded projects
105.8or programs, including the proposed measurable outcomes and all other items required
105.9under section 3.303, subdivision 10, to the Legislative Coordinating Commission as soon
105.10as practicable or by January 15 of the applicable fiscal year, whichever comes first. The
105.11Legislative Coordinating Commission must post submitted information on the Web site
105.12required under section 3.303, subdivision 10, as soon as it becomes available. Information
105.13classified as not public under section 13D.05, subdivision 3, paragraph (d), is not required
105.14to be placed on the Web site.
105.15(d) Grants funded by the clean water fund must be implemented according to section
105.1616B.98 and must account for all expenditures. Proposals must specify a process for any
105.17regranting envisioned. Priority for grant proposals must be given to proposals involving
105.18grants that will be competitively awarded.
105.19(e) Money from the clean water fund may only be spent on projects that benefit
105.20Minnesota waters.
105.21(f) When practicable, a direct recipient of an appropriation from the clean water fund
105.22shall prominently display on the recipient's Web site home page the legacy logo required
105.23under Laws 2009, chapter 172, article 5, section 10, as amended by Laws 2010, chapter
105.24361, article 3, section 5, accompanied by the phrase "Click here for more information."
105.25When a person clicks on the legacy logo image, the Web site must direct the person to
105.26a Web page that includes both the contact information that a person may use to obtain
105.27additional information, as well as a link to the Legislative Coordinating Commission Web
105.28site required under section 3.303, subdivision 10.
105.29(g) Future eligibility for money from the clean water fund is contingent upon a state
105.30agency or other recipient satisfying all applicable requirements in this section, as well as
105.31any additional requirements contained in applicable session law.
105.32(h) Money from the clean water fund may be used to leverage federal funds through
105.33execution of formal project partnership agreements with federal agencies consistent with
105.34respective federal agency partnership agreement requirements.

105.35    Sec. 76. [115.84] WASTEWATER LABORATORY CERTIFICATION.
106.1    Subdivision 1. Wastewater laboratory certification required. (a) Laboratories
106.2performing wastewater or water analytical laboratory work, the results of which are
106.3reported to the agency to determine compliance with a national pollutant discharge
106.4elimination system (NPDES) or state disposal system (SDS) permit condition or other
106.5regulatory document, must be certified according to this section.
106.6(b) This section does not apply to:
106.7(1) laboratories that are private and for-profit;
106.8(2) laboratories that perform drinking water analyses; or
106.9(3) laboratories that perform remediation program analyses, such as Superfund or
106.10petroleum analytical work.
106.11(c) Until adoption of rules under subdivision 2, laboratories required to be certified
106.12under this section that submit data to the agency must: (1) register with the agency by
106.13submitting registration information required by the agency; or (2) be certified or accredited
106.14by a recognized authority, such as the commissioner of health under sections 144.97 to
106.15144.99, for the analytical methods required by the agency.
106.16    Subd. 2. Rules. The agency may adopt rules to govern certification of laboratories
106.17according to this section. Notwithstanding section 16A.1283, the agency may adopt
106.18rules establishing fees.
106.19    Subd. 3. Fees. (a) Until the agency adopts a rule establishing fees for certification,
106.20the agency shall collect fees from laboratories registering with the agency, but not
106.21accredited by the commissioner of health under sections 144.97 to 144.99, in amounts
106.22necessary to cover the reasonable costs of the certification program, including reviewing
106.23applications, issuing certifications, and conducting audits and compliance assistance.
106.24(b) Fees under this section must be based on the number, type, and complexity of
106.25analytical methods that laboratories are certified to perform.
106.26(c) Revenue from fees charged by the agency for certification shall be credited to
106.27the environmental fund.
106.28    Subd. 4. Enforcement. (a) The commissioner may deny, suspend, or revoke
106.29wastewater laboratory certification for, but is not limited to, any of the following reasons:
106.30fraud, failure to follow applicable requirements, failure to respond to documented
106.31deficiencies or complete corrective actions necessary to address deficiencies, failure to pay
106.32certification fees, or other violations of federal or state law.
106.33(b) This section and the rules adopted under it may be enforced by any means
106.34provided in section 115.071.

106.35    Sec. 77. Minnesota Statutes 2012, section 115A.1320, subdivision 1, is amended to read:
107.1    Subdivision 1. Duties of the agency. (a) The agency shall administer sections
107.2115A.1310 to 115A.1330.
107.3    (b) The agency shall establish procedures for:
107.4    (1) receipt and maintenance of the registration statements and certifications filed
107.5with the agency under section 115A.1312; and
107.6    (2) making the statements and certifications easily available to manufacturers,
107.7retailers, and members of the public.
107.8    (c) The agency shall annually review the value of the following variables that are
107.9part of the formula used to calculate a manufacturer's annual registration fee under section
107.10115A.1314, subdivision 1 :
107.11    (1) the proportion of sales of video display devices sold to households that
107.12manufacturers are required to recycle;
107.13    (2) the estimated per-pound price of recycling covered electronic devices sold to
107.14households;
107.15    (3) the base registration fee; and
107.16    (4) the multiplier established for the weight of covered electronic devices collected
107.17in section 115A.1314, subdivision 1, paragraph (d). If the agency determines that any of
107.18these values must be changed in order to improve the efficiency or effectiveness of the
107.19activities regulated under sections 115A.1312 to 115A.1330, the agency shall submit
107.20recommended changes and the reasons for them to the chairs of the senate and house of
107.21representatives committees with jurisdiction over solid waste policy.
107.22    (d) By January 15 each year, beginning in 2008, the agency shall calculate estimated
107.23sales of video display devices sold to households by each manufacturer during the preceding
107.24program year, based on national sales data, and forward the estimates to the department.
107.25    (e) The agency shall provide a report to the governor and the legislature on the
107.26implementation of sections 115A.1310 to 115A.1330. For each program year, the report
107.27must discuss the total weight of covered electronic devices recycled and a summary
107.28of information in the reports submitted by manufacturers and recyclers under section
107.29115A.1316 . The report must also discuss the various collection programs used by
107.30manufacturers to collect covered electronic devices; information regarding covered
107.31electronic devices that are being collected by persons other than registered manufacturers,
107.32collectors, and recyclers; and information about covered electronic devices, if any, being
107.33disposed of in landfills in this state. The report must include a description of enforcement
107.34actions under sections 115A.1310 to 115A.1330. The agency may include in its report
107.35other information received by the agency regarding the implementation of sections
108.1115A.1312 to 115A.1330. The report must be done in conjunction with the report required
108.2under section 115D.10 115A.121.
108.3    (f) The agency shall promote public participation in the activities regulated under
108.4sections 115A.1312 to 115A.1330 through public education and outreach efforts.
108.5    (g) The agency shall enforce sections 115A.1310 to 115A.1330 in the manner
108.6provided by sections 115.071, subdivisions 1, 3, 4, 5, and 6; and 116.072, except for those
108.7provisions enforced by the department, as provided in subdivision 2. The agency may
108.8revoke a registration of a collector or recycler found to have violated sections 115A.1310
108.9to 115A.1330.
108.10    (h) The agency shall facilitate communication between counties, collection and
108.11recycling centers, and manufacturers to ensure that manufacturers are aware of video
108.12display devices available for recycling.
108.13    (i) The agency shall develop a form retailers must use to report information to
108.14manufacturers under section 115A.1318 and post it on the agency's Web site.
108.15    (j) The agency shall post on its Web site the contact information provided by each
108.16manufacturer under section 115A.1318, paragraph (e).

108.17    Sec. 78. [115A.1415] ARCHITECTURAL PAINT; PRODUCT STEWARDSHIP
108.18PROGRAM; STEWARDSHIP PLAN.
108.19    Subdivision 1. Definitions. For purposes of this section, the following terms have
108.20the meanings given:
108.21(1) "architectural paint" means interior and exterior architectural coatings sold in
108.22containers of five gallons or less. Architectural paint does not include industrial coatings,
108.23original equipment coatings, or specialty coatings;
108.24(2) "brand" means a name, symbol, word, or mark that identifies architectural paint,
108.25rather than its components, and attributes the paint to the owner or licensee of the brand as
108.26the producer;
108.27(3) "discarded paint" means architectural paint that is no longer used for its
108.28manufactured purpose;
108.29(4) "producer" means a person that:
108.30(i) has legal ownership of the brand, brand name, or cobrand of architectural paint
108.31sold in the state;
108.32(ii) imports architectural paint branded by a producer that meets subclause (i) when
108.33the producer has no physical presence in the United States;
108.34(iii) if subclauses (i) and (ii) do not apply, makes unbranded architectural paint
108.35that is sold in the state; or
109.1(iv) sells architectural paint at wholesale or retail, does not have legal ownership of
109.2the brand, and elects to fulfill the responsibilities of the producer for the architectural paint
109.3by certifying that election in writing to the commissioner;
109.4(5) "recycling" means the process of collecting and preparing recyclable materials and
109.5reusing the materials in their original form or using them in manufacturing processes that
109.6do not cause the destruction of recyclable materials in a manner that precludes further use;
109.7(6) "retailer" means any person who offers architectural paint for sale at retail in
109.8the state;
109.9(7) "reuse" means donating or selling collected architectural paint back into the
109.10market for its original intended use, when the architectural paint retains its original
109.11purpose and performance characteristics;
109.12(8) "sale" or "sell" means transfer of title of architectural paint for consideration,
109.13including a remote sale conducted through a sales outlet, catalog, Web site, or similar
109.14electronic means. Sale or sell includes a lease through which architectural paint is
109.15provided to a consumer by a producer, wholesaler, or retailer;
109.16(9) "stewardship assessment" means the amount added to the purchase price of
109.17architectural paint sold in the state that is necessary to cover the cost of collecting,
109.18transporting, and processing postconsumer architectural paint by the producer or
109.19stewardship organization pursuant to a product stewardship program;
109.20(10) "stewardship organization" means an organization appointed by one or more
109.21producers to act as an agent on behalf of the producer to design, submit, and administer a
109.22product stewardship program under this section; and
109.23(11) "stewardship plan" means a detailed plan describing the manner in which a
109.24product stewardship program under subdivision 2 will be implemented.
109.25    Subd. 2. Product stewardship program. For architectural paint sold in the state,
109.26producers must, individually or through a stewardship organization, implement and
109.27finance a statewide product stewardship program that manages the architectural paint by
109.28reducing the paint's waste generation, promoting its reuse and recycling, and providing for
109.29negotiation and execution of agreements to collect, transport, and process the architectural
109.30paint for end-of-life recycling and reuse.
109.31    Subd. 3. Requirement for sale. (a) On and after July 1, 2014, or three months after
109.32program plan approval, whichever is sooner, no producer, wholesaler, or retailer may sell
109.33or offer for sale in the state architectural paint unless the paint's producer participates in an
109.34approved stewardship plan, either individually or through a stewardship organization.
110.1(b) Each producer must operate a product stewardship program approved by the
110.2agency or enter into an agreement with a stewardship organization to operate, on the
110.3producer's behalf, a product stewardship program approved by the agency.
110.4    Subd. 4. Requirement to submit plan. (a) On or before March 1, 2014, and before
110.5offering architectural paint for sale in the state, a producer must submit a stewardship
110.6plan to the agency and receive approval of the plan or must submit documentation to the
110.7agency that demonstrates the producer has entered into an agreement with a stewardship
110.8organization to be an active participant in an approved product stewardship program as
110.9described in subdivision 2. A stewardship plan must include all elements required under
110.10subdivision 5.
110.11(b) An amendment to the plan, if determined necessary by the commissioner, must
110.12be submitted every five years.
110.13(c) It is the responsibility of the entities responsible for each stewardship plan to
110.14notify the agency within 30 days of any significant changes or modifications to the plan or
110.15its implementation. Within 30 days of the notification, a written plan revision must be
110.16submitted to the agency for review and approval.
110.17    Subd. 5. Stewardship plan content. A stewardship plan must contain:
110.18(1) certification that the product stewardship program will accept all discarded
110.19paint regardless of which producer produced the architectural paint and its individual
110.20components;
110.21(2) contact information for the individual and the entity submitting the plan, a list of
110.22all producers participating in the product stewardship program, and the brands covered by
110.23the product stewardship program;
110.24(3) a description of the methods by which the discarded paint will be collected in all
110.25areas in the state without relying on end-of-life fees, including an explanation of how the
110.26collection system will be convenient and adequate to serve the needs of small businesses
110.27and residents in both urban and rural areas on an ongoing basis and a discussion of how
110.28the existing household hazardous waste infrastructure will be considered when selecting
110.29collection sites;
110.30(4) a description of how the adequacy of the collection program will be monitored
110.31and maintained;
110.32(5) the names and locations of collectors, transporters, and recyclers that will
110.33manage discarded paint;
110.34(6) a description of how the discarded paint and the paint's components will be
110.35safely and securely transported, tracked, and handled from collection through final
110.36recycling and processing;
111.1(7) a description of the method that will be used to reuse, deconstruct, or recycle
111.2the discarded paint to ensure that the paint's components, to the extent feasible, are
111.3transformed or remanufactured into finished products for use;
111.4(8) a description of the promotion and outreach activities that will be used to
111.5encourage participation in the collection and recycling programs and how the activities'
111.6effectiveness will be evaluated and the program modified, if necessary;
111.7(9) the proposed stewardship assessment. The producer or stewardship organization
111.8shall propose a uniform stewardship assessment for any architectural paint sold in the
111.9state. The proposed stewardship assessment shall be reviewed by an independent auditor
111.10to ensure that the assessment does not exceed the costs of the product stewardship program
111.11and the independent auditor shall recommend an amount for the stewardship assessment.
111.12The agency must approve the stewardship assessment;
111.13(10) evidence of adequate insurance and financial assurance that may be required for
111.14collection, handling, and disposal operations;
111.15(11) five-year performance goals, including an estimate of the percentage of
111.16discarded paint that will be collected, reused, and recycled during each of the first five
111.17years of the stewardship plan. The performance goals must include a specific goal for the
111.18amount of discarded paint that will be collected and recycled and reused during each year
111.19of the plan. The performance goals must be based on:
111.20(i) the most recent collection data available for the state;
111.21(ii) the estimated amount of architectural paint disposed of annually;
111.22(iii) the weight of the architectural paint that is expected to be available for collection
111.23annually; and
111.24(iv) actual collection data from other existing stewardship programs.
111.25The stewardship plan must state the methodology used to determine these goals; and
111.26(12) a discussion of the status of end markets for collected architectural paint and
111.27what, if any, additional end markets are needed to improve the functioning of the program.
111.28    Subd. 6. Consultation required. Each stewardship organization or individual
111.29producer submitting a stewardship plan must consult with stakeholders including
111.30retailers, contractors, collectors, recyclers, local government, and customers during the
111.31development of the plan.
111.32    Subd. 7. Agency review and approval. (a) Within 90 days after receipt of a proposed
111.33stewardship plan, the agency shall determine whether the plan complies with subdivision
111.344. If the agency approves a plan, the agency shall notify the applicant of the plan approval
111.35in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of
112.1the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must
112.2submit a revised plan to the agency within 60 days after receiving notice of rejection.
112.3(b) Any proposed changes to a stewardship plan must be approved by the agency
112.4in writing.
112.5    Subd. 8. Plan availability. All draft and approved stewardship plans shall be
112.6placed on the agency's Web site for at least 30 days and made available at the agency's
112.7headquarters for public review and comment.
112.8    Subd. 9. Conduct authorized. A producer or stewardship organization that
112.9organizes collection, transport, and processing of architectural paint under this section
112.10is immune from liability for the conduct under state laws relating to antitrust, restraint
112.11of trade, unfair trade practices, and other regulation of trade or commerce only to the
112.12extent that the conduct is necessary to plan and implement the producer's or organization's
112.13chosen organized collection or recycling system.
112.14    Subd. 10. Responsibility of producers. (a) On and after the date of implementation
112.15of a product stewardship program according to this section, a producer of architectural
112.16paint must add the stewardship assessment, as established under subdivision 5, clause (9),
112.17to the cost of architectural paint sold to retailers and distributors in the state by the producer.
112.18(b) Producers of architectural paint or the stewardship organization shall provide
112.19consumers with educational materials regarding the stewardship assessment and product
112.20stewardship program. The materials must include, but are not limited to, information
112.21regarding available end-of-life management options for architectural paint offered through
112.22the product stewardship program and information that notifies consumers that a charge
112.23for the operation of the product stewardship program is included in the purchase price of
112.24architectural paint sold in the state.
112.25    Subd. 11. Responsibility of retailers. (a) On and after July 1, 2014, or three months
112.26after program plan approval, whichever is sooner, no architectural paint may be sold in the
112.27state unless the paint's producer is participating in an approved stewardship plan.
112.28(b) On and after the implementation date of a product stewardship program according
112.29to this section, each retailer or distributor, as applicable, must ensure that the full amount
112.30of the stewardship assessment added to the cost of architectural paint by producers under
112.31subdivision 10 is included in the purchase price of all architectural paint sold in the state.
112.32(c) Any retailer may participate, on a voluntary basis, as a designated collection
112.33point pursuant to a product stewardship program under this section and in accordance
112.34with applicable law.
113.1(d) No retailer or distributor shall be found to be in violation of this subdivision if,
113.2on the date the architectural paint was ordered from the producer or its agent, the producer
113.3was listed as compliant on the agency's Web site according to subdivision 14.
113.4    Subd. 12. Stewardship reports. Beginning October 1, 2015, producers of
113.5architectural paint sold in the state must individually or through a stewardship organization
113.6submit an annual report to the agency describing the product stewardship program. At a
113.7minimum, the report must contain:
113.8(1) a description of the methods used to collect, transport, and process architectural
113.9paint in all regions of the state;
113.10(2) the weight of all architectural paint collected in all regions of the state and a
113.11comparison to the performance goals and recycling rates established in the stewardship
113.12plan;
113.13(3) the amount of unwanted architectural paint collected in the state by method of
113.14disposition, including reuse, recycling, and other methods of processing;
113.15(4) samples of educational materials provided to consumers and an evaluation of the
113.16effectiveness of the materials and the methods used to disseminate the materials; and
113.17(5) an independent financial audit.
113.18    Subd. 13. Data classification. Trade secret and sales information, as defined under
113.19section 13.37, submitted to the agency under this section are private or nonpublic data
113.20under section 13.37.
113.21    Subd. 14. Agency responsibilities. The agency shall provide, on its Web site, a
113.22list of all compliant producers and brands participating in stewardship plans that the
113.23agency has approved and a list of all producers and brands the agency has identified as
113.24noncompliant with this section.
113.25    Subd. 15. Local government responsibilities. (a) A city, county, or other public
113.26agency may choose to participate voluntarily in a product stewardship program.
113.27(b) Cities, counties, and other public agencies are encouraged to work with producers
113.28and stewardship organizations to assist in meeting product stewardship program reuse and
113.29recycling obligations, by providing education and outreach or using other strategies.
113.30(c) A city, county, or other public agency that participates in a product stewardship
113.31program must report for the first year of the program to the agency using the reporting
113.32form provided by the agency on the cost savings as a result of participation and describe
113.33how the savings were used.
113.34    Subd. 16. Administrative fee. (a) The stewardship organization or individual
113.35producer submitting a stewardship plan shall pay an annual administrative fee to the
113.36commissioner. The agency may establish a variable fee based on relevant factors,
114.1including, but not limited to, the portion of architectural paint sold in the state by members
114.2of the organization compared to the total amount of architectural paint sold in the state by
114.3all organizations submitting a stewardship plan.
114.4    (b) Prior to July 1, 2014, and before July 1 annually thereafter, the agency shall
114.5identify the costs it incurs under this section. The agency shall set the fee at an amount
114.6that, when paid by every stewardship organization or individual producer that submits a
114.7stewardship plan, is adequate to reimburse the agency's full costs of administering this
114.8section. The total amount of annual fees collected under this subdivision must not exceed
114.9the amount necessary to reimburse costs incurred by the agency to administer this section.
114.10    (c) A stewardship organization or individual producer subject to this subdivision
114.11must pay the agency's administrative fee under paragraph (a) on or before July 1, 2014 and
114.12annually thereafter. Each year after the initial payment, the annual administrative fee may
114.13not exceed five percent of the aggregate stewardship assessment added to the cost of all
114.14architectural paint sold by producers in the state for the preceding calendar year.
114.15    (d) All fees received under this section shall be deposited to the state treasury and
114.16credited to a product stewardship account in the special revenue fund. For fiscal years
114.172014 and 2015, the amount collected under this section is annually appropriated to the
114.18agency to implement and enforce this section.

114.19    Sec. 79. [115A.142] REPORT TO LEGISLATURE AND GOVERNOR.
114.20As part of the report required under section 115A.121, the commissioner of the
114.21Pollution Control Agency shall provide a report to the governor and the legislature on
114.22the implementation of section 115A.1415.

114.23    Sec. 80. Minnesota Statutes 2012, section 115B.20, subdivision 6, is amended to read:
114.24    Subd. 6. Report to legislature. Each year By January 31 of each odd-numbered
114.25year, the commissioner of agriculture and the agency shall submit to the senate Finance
114.26Committee, the house of representatives Ways and Means Committee, the Environment
114.27and Natural Resources Committees of the senate and house of representatives, the Finance
114.28Division of the senate Committee on Environment and Natural Resources, and the house
114.29of representatives Committee on Environment and Natural Resources Finance, and the
114.30Environmental Quality Board a report detailing the activities for which money has been
114.31spent pursuant to this section during the previous fiscal year.
114.32EFFECTIVE DATE.This section is effective July 1, 2013.

114.33    Sec. 81. Minnesota Statutes 2012, section 115B.28, subdivision 1, is amended to read:
115.1    Subdivision 1. Duties. In addition to performing duties specified in sections
115.2115B.25 to 115B.37 or in other law, and subject to the limitations on disclosure contained
115.3in section 115B.35, the agency shall:
115.4(1) adopt rules, including rules governing practice and procedure before the agency,
115.5the form and procedure for applications for compensation, and procedures for claims
115.6investigations;
115.7(2) publicize the availability of compensation and application procedures on a
115.8statewide basis with special emphasis on geographical areas surrounding sites identified
115.9by the agency as having releases from a facility where a harmful substance was placed or
115.10came to be located prior to July 1, 1983;
115.11(3) collect, analyze, and make available to the public, in consultation with the
115.12Department of Health, the Pollution Control Agency, the University of Minnesota Medical
115.13and Public Health Schools, and the medical community, data regarding injuries relating to
115.14exposure to harmful substances; and
115.15(4) prepare and transmit by December 31 of each year to the governor and the
115.16legislature an annual legislative report required under section 115B.20, subdivision
115.176, to include (i) a summary of agency activity under clause (3); (ii) data determined
115.18by the agency from actual cases, including but not limited to number of cases, actual
115.19compensation received by each claimant, types of cases, and types of injuries compensated,
115.20as they relate to types of harmful substances as well as length of exposure, but excluding
115.21identification of the claimants; (iii) all administrative costs associated with the business of
115.22the agency; and (iv) agency recommendations for legislative changes, further study, or any
115.23other recommendation aimed at improving the system of compensation.

115.24    Sec. 82. Minnesota Statutes 2012, section 115B.421, is amended to read:
115.25115B.421 CLOSED LANDFILL INVESTMENT FUND.
115.26The closed landfill investment fund is established in the state treasury. The fund
115.27consists of money credited to the fund, and interest and other earnings on money in the
115.28fund. The commissioner of management and budget shall transfer an initial amount of
115.29$5,100,000 from the balance in the solid waste fund beginning in fiscal year 2000 and
115.30shall continue to transfer $5,100,000 for each following fiscal year, ceasing after 2003.
115.31 Beginning July 1, 2003, funds must be deposited as described in section 115B.445. The
115.32fund shall be managed to maximize long-term gain through the State Board of Investment.
115.33Money in the fund may be spent by the commissioner after fiscal year 2020 in accordance
115.34with sections 115B.39 to 115B.444.

116.1    Sec. 83. Minnesota Statutes 2012, section 115C.02, subdivision 4, is amended to read:
116.2    Subd. 4. Corrective action. "Corrective action" means an action taken to minimize,
116.3eliminate, or clean up a release to protect the public health and welfare or the environment.
116.4 Corrective action may include, environmental covenants pursuant to chapter 114E, an
116.5affidavit required under section 116.48, subdivision 6, or similar notice of a release
116.6recorded with real property records.

116.7    Sec. 84. Minnesota Statutes 2012, section 115C.08, subdivision 4, is amended to read:
116.8    Subd. 4. Expenditures. (a) Money in the fund may only be spent:
116.9(1) to administer the petroleum tank release cleanup program established in this
116.10chapter;
116.11(2) for agency administrative costs under sections 116.46 to 116.50, sections
116.12115C.03 to 115C.06, and costs of corrective action taken by the agency under section
116.13115C.03 , including investigations;
116.14(3) for costs of recovering expenses of corrective actions under section 115C.04;
116.15(4) for training, certification, and rulemaking under sections 116.46 to 116.50;
116.16(5) for agency administrative costs of enforcing rules governing the construction,
116.17installation, operation, and closure of aboveground and underground petroleum storage
116.18tanks;
116.19(6) for reimbursement of the environmental response, compensation, and compliance
116.20account under subdivision 5 and section 115B.26, subdivision 4;
116.21(7) for administrative and staff costs as set by the board to administer the petroleum
116.22tank release program established in this chapter;
116.23(8) for corrective action performance audits under section 115C.093;
116.24(9) for contamination cleanup grants, as provided in paragraph (c);
116.25(10) to assess and remove abandoned underground storage tanks under section
116.26115C.094 and, if a release is discovered, to pay for the specific consultant and contractor
116.27services costs necessary to complete the tank removal project, including, but not limited
116.28to, excavation soil sampling, groundwater sampling, soil disposal, and completion of
116.29an excavation report; and
116.30(11) for property acquisition by the agency when the agency has determined that
116.31purchasing a property where a release has occurred is the most appropriate corrective
116.32action. The to acquire interests in real or personal property, including easements,
116.33environmental covenants under chapter 114E, and leases, that the agency determines are
116.34necessary for corrective actions or to ensure the protectiveness of corrective actions. A
116.35donation of an interest in real property to the agency is not effective until the agency
117.1executes a certificate of acceptance. The state is not liable under this chapter solely as a
117.2result of acquiring an interest in real property under this clause. Agency approval of an
117.3environmental covenant under chapter 114E is sufficient evidence of acceptance of an
117.4interest in real property when the agency is expressly identified as a holder in the covenant.
117.5 Acquisition of all properties real property under this clause, except environmental
117.6covenants under chapter 114E, is subject to approval by the board.
117.7(b) Except as provided in paragraph (c), money in the fund is appropriated to the
117.8board to make reimbursements or payments under this section.
117.9(c) In fiscal years 2010 and 2011, $3,700,000 is annually appropriated from the fund
117.10to the commissioner of employment and economic development for contamination cleanup
117.11grants under section 116J.554. Beginning in fiscal year 2012 and each year thereafter,
117.12$6,200,000 is annually appropriated from the fund to the commissioner of employment
117.13and economic development for contamination cleanup grants under section 116J.554. Of
117.14this amount, the commissioner may spend up to $225,000 annually for administration
117.15of the contamination cleanup grant program. The appropriation does not cancel and is
117.16available until expended. The appropriation shall not be withdrawn from the fund nor the
117.17fund balance reduced until the funds are requested by the commissioner of employment
117.18and economic development. The commissioner shall schedule requests for withdrawals
117.19from the fund to minimize the necessity to impose the fee authorized by subdivision 2.
117.20Unless otherwise provided, the appropriation in this paragraph may be used for:
117.21(1) project costs at a qualifying site if a portion of the cleanup costs are attributable
117.22to petroleum contamination or new and used tar and tar-like substances, including but not
117.23limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist
117.24primarily of hydrocarbons and are found in natural deposits in the earth or are distillates,
117.25fractions, or residues from the processing of petroleum crude or petroleum products as
117.26defined in section 296A.01; and
117.27(2) the costs of performing contamination investigation if there is a reasonable basis
117.28to suspect the contamination is attributable to petroleum or new and used tar and tar-like
117.29substances, including but not limited to bitumen and asphalt, but excluding bituminous or
117.30asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits
117.31in the earth or are distillates, fractions, or residues from the processing of petroleum crude
117.32or petroleum products as defined in section 296A.01.

117.33    Sec. 85. Minnesota Statutes 2012, section 115C.08, is amended by adding a subdivision
117.34to read:
118.1    Subd. 6. Disposition of property acquired for corrective action. (a) If the
118.2commissioner determines that real or personal property acquired by the agency for a
118.3corrective action is no longer needed for corrective action purposes, the commissioner may:
118.4(1) request the commissioner of administration to dispose of the property according
118.5to sections 16B.281 to 16B.287, subject to conditions the commissioner of the Pollution
118.6Control Agency determines necessary to protect the public health and welfare and the
118.7environment or to comply with federal law;
118.8(2) transfer the property to another state agency, a political subdivision, or a special
118.9purpose district as provided in paragraph (b); or
118.10(3) if required by federal law, take actions and dispose of the property according
118.11to federal law.
118.12(b) If the commissioner determines that real or personal property acquired by
118.13the agency for a corrective action must be operated, maintained, or monitored after
118.14completion of other phases of the corrective action, the commissioner may transfer
118.15ownership of the property to another state agency, a political subdivision, or a special
118.16purpose district that agrees to accept the property. A state agency, political subdivision,
118.17or special purpose district may accept and implement terms and conditions of a transfer
118.18under this paragraph. The commissioner may set terms and conditions for the transfer
118.19that the commissioner considers reasonable and necessary to ensure proper operation,
118.20maintenance, and monitoring of corrective actions; protect the public health and welfare
118.21and the environment; and comply with applicable federal and state laws and regulations.
118.22The state agency, political subdivision, or special purpose district to which the property is
118.23transferred is not liable under this chapter solely as a result of acquiring the property or
118.24acting in accordance with the terms and conditions of transfer.
118.25(c) The commissioner of administration may charge the agency for actual staff and
118.26other costs related to disposal of the property under paragraph (a), clause (1). The net
118.27proceeds of a sale or other transfer of property under this subdivision by the commissioner
118.28or by the commissioner of administration shall be deposited in the petroleum tank fund or
118.29other appropriate fund. Any share of the proceeds that the agency is required by federal
118.30law or regulation to reimburse to the federal government is appropriated from the fund
118.31to the agency for the purpose. Section 16B.287, subdivision 1, does not apply to real
118.32property that is sold by the commissioner of administration and that was acquired under
118.33subdivision 4, clause (11).

118.34    Sec. 86. Minnesota Statutes 2012, section 115D.10, is amended to read:
118.35115D.10 TOXIC POLLUTION PREVENTION EVALUATION REPORT.
119.1The commissioner, in cooperation with the commission, shall report to
119.2the Environment and Natural Resources Committees of the senate and house of
119.3representatives, the Finance Division of the senate Committee on Environment and
119.4Natural Resources, and the house of representatives Committee on Environment and
119.5Natural Resources Finance on progress being made in achieving the objectives of sections
119.6115D.01 to 115D.12. The report must be submitted by February 1 of each even-numbered
119.7year done in conjunction with the report required under section 115A.121.

119.8    Sec. 87. Minnesota Statutes 2012, section 116.48, subdivision 6, is amended to read:
119.9    Subd. 6. Affidavit. (a) Before transferring ownership of property that the owner
119.10knows contains an underground or aboveground storage tank or contained an underground
119.11or aboveground storage tank that had a release for which no corrective action was taken or
119.12if required by the agency as a condition of a corrective action under chapter 115C, the
119.13owner shall record with the county recorder or registrar of titles of the county in which the
119.14property is located an affidavit containing:
119.15(1) a legal description of the property where the tank is located;
119.16(2) a description of the tank, of the location of the tank, and of any known release
119.17from the tank of a regulated substance to the full extent known or reasonably ascertainable;
119.18(3) a description of any restrictions currently in force on the use of the property
119.19resulting from any release; and
119.20(4) the name of the owner.
119.21(b) The county recorder shall record the affidavits in a manner that will insure
119.22their disclosure in the ordinary course of a title search of the subject property. Before
119.23transferring ownership of property that the owner knows contains an underground or
119.24aboveground storage tank, the owner shall deliver to the purchaser a copy of the affidavit
119.25and any additional information necessary to make the facts in the affidavit accurate as of
119.26the date of transfer of ownership.
119.27(c) Failure to record an affidavit as provided in this subdivision does not affect or
119.28prevent any transfer of ownership of the property.

119.29    Sec. 88. Minnesota Statutes 2012, section 116C.03, subdivision 2, is amended to read:
119.30    Subd. 2. Membership. The members of the board are the director of the Office of
119.31Strategic and Long-Range Planning commissioner of administration, the commissioner
119.32of commerce, the commissioner of the Pollution Control Agency, the commissioner
119.33of natural resources, the commissioner of agriculture, the commissioner of health,
119.34the commissioner of employment and economic development, the commissioner of
120.1transportation, the chair of the Board of Water and Soil Resources, and a representative of
120.2the governor's office designated by the governor. The governor shall appoint five members
120.3from the general public to the board, subject to the advice and consent of the senate.
120.4At least two of the five public members must have knowledge of and be conversant in
120.5water management issues in the state. Notwithstanding the provisions of section 15.06,
120.6subdivision 6
, members of the board may not delegate their powers and responsibilities as
120.7board members to any other person.

120.8    Sec. 89. Minnesota Statutes 2012, section 116C.03, subdivision 4, is amended to read:
120.9    Subd. 4. Support. Staff and consultant support for board activities shall be provided
120.10by the Office of Strategic and Long-Range Planning Pollution Control Agency. This
120.11support shall be provided based upon an annual budget and work program developed by
120.12the board and certified to the commissioner by the chair of the board. The board shall
120.13have the authority to request and require staff support from all other agencies of state
120.14government as needed for the execution of the responsibilities of the board.

120.15    Sec. 90. Minnesota Statutes 2012, section 116C.03, subdivision 5, is amended to read:
120.16    Subd. 5. Administration. The board shall contract with the Office of Strategic and
120.17Long-Range Planning Pollution Control Agency for administrative services necessary to
120.18the board's activities. The services shall include personnel, budget, payroll and contract
120.19administration.

120.20    Sec. 91. [116C.99] SILICA SAND MINING MODEL STANDARDS AND
120.21CRITERIA.
120.22    Subdivision 1. Definitions. The definitions in this subdivision apply to sections
120.23116C.99 to 116C.992.
120.24(a) "Local unit of government" means a county, statutory or home rule charter city,
120.25or town.
120.26(b) "Mining" means excavating silica sand by any process, including digging,
120.27excavating, drilling, blasting, tunneling, dredging, stripping, or by shaft.
120.28(c) "Processing" means washing, cleaning, screening, crushing, filtering, sorting,
120.29processing, stockpiling, and storing silica sand, either at the mining site or at any other site.
120.30(d) "Silica sand" means well-rounded, sand-sized grains of quartz (silicon dioxide),
120.31with very little impurities in terms of other minerals. Specifically, the silica sand for the
120.32purposes of this section is commercially valuable for use in the hydraulic fracturing of
120.33shale to obtain oil and natural gas. Silica sand does not include common rock, stone,
121.1aggregate, gravel, sand with a low quartz level, or silica compounds recovered as a
121.2by-product of metallic mining.
121.3(e) "Silica sand project" means the excavation and mining and processing of silica
121.4sand; the washing, cleaning, screening, crushing, filtering, drying, sorting, stockpiling,
121.5and storing of silica sand, either at the mining site or at any other site; the hauling and
121.6transporting of silica sand; or a facility for transporting silica sand to destinations by rail,
121.7barge, truck, or other means of transportation.
121.8(f) "Temporary storage" means the storage of stock piles of silica sand that have
121.9been transported and await further transport.
121.10(g) "Transporting" means hauling and transporting silica sand, by any carrier:
121.11(1) from the mining site to a processing or transfer site; or
121.12(2) from a processing or storage site to a rail, barge, or transfer site for transporting
121.13to destinations.
121.14    Subd. 2. Standards and criteria. (a) By October 1, 2013, the Environmental
121.15Quality Board, in consultation with local units of government, shall develop model
121.16standards and criteria for mining, processing, and transporting silica sand. These standards
121.17and criteria may be used by local units of government in developing local ordinances. The
121.18standards and criteria shall be different for different geographic areas of the state. The
121.19unique karst conditions and landforms of southeastern Minnesota shall be considered
121.20unique when compared with the flat scoured river terraces and uniform hydrology of the
121.21Minnesota Valley. The standards and criteria developed shall reflect those differences in
121.22varying regions of the state. The standards and criteria must include:
121.23(1) recommendations for setbacks or buffers for mining operation and processing,
121.24including:
121.25(i) any residence or residential zoning district boundary;
121.26(ii) any property line or right-of-way line of any existing or proposed street or
121.27highway;
121.28(iii) ordinary high water levels of public waters;
121.29(iv) bluffs;
121.30(v) designated trout streams, Class 2A water as designated in the rules of the
121.31Pollution Control Agency, or any perennially flowing tributary of a designated trout
121.32stream or Class 2A water;
121.33(vi) calcareous fens;
121.34(vii) wellhead protection areas as defined in section 103I.005;
121.35(viii) critical natural habitat acquired by the commissioner of natural resources
121.36under section 84.944; and
122.1(ix) a natural resource easement paid wholly or in part by public funds;
122.2(2) standards for hours of operation;
122.3(3) groundwater and surface water quality and quantity monitoring and mitigation
122.4plan requirements, including:
122.5(i) applicable groundwater and surface water appropriation permit requirements;
122.6(ii) well sealing requirements;
122.7(iii) annual submission of monitoring well data; and
122.8(iv) storm water runoff rate limits not to exceed two-, ten-, and 100-year storm events;
122.9(4) air monitoring and data submission requirements;
122.10(5) dust control requirements;
122.11(6) noise testing and mitigation plan requirements;
122.12(7) blast monitoring plan requirements;
122.13(8) lighting requirements;
122.14(9) inspection requirements;
122.15(10) containment requirements for silica sand in temporary storage to protect air
122.16and water quality;
122.17(11) containment requirements for chemicals used in processing;
122.18(12) financial assurance requirements;
122.19(13) road and bridge impacts and requirements; and
122.20(14) reclamation plan requirements as required under the rules adopted by the
122.21commissioner of natural resources.
122.22    Subd. 3. Silica sand technical assistance team. By October 1, 2013, the
122.23Environmental Quality Board shall assemble a silica sand technical assistance team
122.24to provide local units of government, at their request, with assistance with ordinance
122.25development, zoning, environmental review and permitting, monitoring, or other issues
122.26arising from silica sand mining and processing operations. The technical assistance team
122.27may be chosen from representatives of the following entities: the Department of Natural
122.28Resources, the Pollution Control Agency, the Board of Water and Soil Resources, the
122.29Department of Health, the Department of Transportation, the University of Minnesota,
122.30the Minnesota State Colleges and Universities, and federal agencies. A majority of the
122.31members must be from a state agency and all members must have expertise in one or more
122.32of the following areas: silica sand mining, hydrology, air quality, water quality, land use,
122.33or other areas related to silica sand mining.
122.34    Subd. 4. Consideration of technical assistance team recommendations. (a) When
122.35the technical assistance team, at the request of the local unit of government, assembles
122.36findings or makes a recommendation related to a proposed silica sand project for the
123.1protection of human health and the environment, a local government unit must consider
123.2the findings or recommendations of the technical assistance team in its approval or denial
123.3of a silica sand project. If the local government unit does not agree with the technical
123.4assistance team's findings and recommendations, the detailed reasons for the disagreement
123.5must be part of the local government unit's record of decision.
123.6(b) Silica sand project proposers must cooperate in providing local government unit
123.7staff, and members of the technical assistance team with information regarding the project.
123.8(c) When a local unit of government requests assistance from the silica sand
123.9technical assistance team for environmental review or permitting of a silica sand project
123.10the local unit of government may assess the project proposer for reasonable costs of the
123.11assistance and use the funds received to reimburse the entity providing that assistance.
123.12EFFECTIVE DATE.This section is effective the day following final enactment.

123.13    Sec. 92. [116C.991] ENVIRONMENTAL REVIEW; SILICA SAND PROJECTS.
123.14(a) Until two years after the effective date of this section, an environmental
123.15assessment worksheet must be prepared for any silica sand project that meets or exceeds
123.16the following thresholds, unless the project meets or exceeds the thresholds for an
123.17environmental impact statement under rules of the Environmental Quality Board and an
123.18environmental impact statement must be prepared:
123.19(1) excavates 20 or more acres of land to a mean depth of ten feet or more during its
123.20existence. The local government is the responsible governmental unit; or
123.21(2) is designed to store or is capable of storing more than 7,500 tons of silica sand or
123.22has an annual throughput of more than 200,000 tons of silica sand and is not required to
123.23receive a permit from the Pollution Control Agency. The Pollution Control Agency is the
123.24responsible governmental unit.
123.25(b) In addition to the contents required under statute and rule, an environmental
123.26assessment worksheet completed according to this section must include:
123.27(1) a hydrogeologic investigation assessing potential groundwater and surface water
123.28effects and geologic conditions that could create an increased risk of potentially significant
123.29effects on groundwater and surface water;
123.30(2) for a project with the potential to require a groundwater appropriation permit
123.31from the commissioner of natural resources, an assessment of the water resources
123.32available for appropriation;
123.33(3) an air quality impact assessment that includes an assessment of the potential
123.34effects from airborne particulates and dust;
124.1(4) a traffic impact analysis, including documentation of existing transportation
124.2systems, analysis of the potential effects of the project on transportation, and mitigation
124.3measures to eliminate or minimize adverse impacts;
124.4(5) an assessment of compatibility of the project with other existing uses; and
124.5(6) mitigation measures that could eliminate or minimize any adverse environmental
124.6effects for the project.
124.7EFFECTIVE DATE.This section is effective July 1, 2013, and no permit for
124.8a silica sand project subject to this section may be approved after that date unless the
124.9required environmental review has been completed.

124.10    Sec. 93. [116C.992] TECHNICAL ASSISTANCE, ORDINANCE, AND PERMIT
124.11LIBRARY.
124.12By October 1, 2013, the Environmental Quality Board, in consultation with local
124.13units of government, shall create and maintain a library on local government ordinances
124.14and local government permits that have been approved for regulation of silica sand
124.15projects for reference by local governments.

124.16    Sec. 94. Minnesota Statutes 2012, section 116D.04, is amended by adding a
124.17subdivision to read:
124.18    Subd. 16. Groundwater; environmental assessment worksheets. When an
124.19environmental assessment worksheet is required for a proposed action that has the
124.20potential to require a groundwater appropriation permit from the commissioner of natural
124.21resources, the board shall require that the environmental assessment worksheet include an
124.22assessment of the water resources available for appropriation.

124.23    Sec. 95. Minnesota Statutes 2012, section 282.04, subdivision 1, is amended to read:
124.24    Subdivision 1. Timber sales; land leases and uses. (a) The county auditor, with
124.25terms and conditions set by the county board, may sell timber upon any tract that may be
124.26approved by the natural resources commissioner. The sale of timber shall be made for
124.27cash at not less than the appraised value determined by the county board to the highest
124.28bidder after not less than one week's published notice in an official paper within the
124.29county. Any timber offered at the public sale and not sold may thereafter be sold at private
124.30sale by the county auditor at not less than the appraised value thereof, until the time as
124.31the county board may withdraw the timber from sale. The appraised value of the timber
124.32and the forestry practices to be followed in the cutting of said timber shall be approved
124.33by the commissioner of natural resources.
125.1    (b) Payment of the full sale price of all timber sold on tax-forfeited lands shall be
125.2made in cash at the time of the timber sale, except in the case of oral or sealed bid auction
125.3sales, the down payment shall be no less than 15 percent of the appraised value, and the
125.4balance shall be paid prior to entry. In the case of auction sales that are partitioned and
125.5sold as a single sale with predetermined cutting blocks, the down payment shall be no less
125.6than 15 percent of the appraised price of the entire timber sale which may be held until the
125.7satisfactory completion of the sale or applied in whole or in part to the final cutting block.
125.8The value of each separate block must be paid in full before any cutting may begin in that
125.9block. With the permission of the county contract administrator the purchaser may enter
125.10unpaid blocks and cut necessary timber incidental to developing logging roads as may
125.11be needed to log other blocks provided that no timber may be removed from an unpaid
125.12block until separately scaled and paid for. If payment is provided as specified in this
125.13paragraph as security under paragraph (a) and no cutting has taken place on the contract,
125.14the county auditor may credit the security provided, less any down payment required for
125.15an auction sale under this paragraph, to any other contract issued to the contract holder
125.16by the county under this chapter to which the contract holder requests in writing that it
125.17be credited, provided the request and transfer is made within the same calendar year as
125.18the security was received.
125.19    (c) The county board may sell any timber, including biomass, as appraised or scaled.
125.20Any parcels of land from which timber is to be sold by scale of cut products shall be so
125.21designated in the published notice of sale under paragraph (a), in which case the notice
125.22shall contain a description of the parcels, a statement of the estimated quantity of each
125.23species of timber, and the appraised price of each species of timber for 1,000 feet, per cord
125.24or per piece, as the case may be. In those cases any bids offered over and above the
125.25appraised prices shall be by percentage, the percent bid to be added to the appraised price
125.26of each of the different species of timber advertised on the land. The purchaser of timber
125.27from the parcels shall pay in cash at the time of sale at the rate bid for all of the timber
125.28shown in the notice of sale as estimated to be standing on the land, and in addition shall
125.29pay at the same rate for any additional amounts which the final scale shows to have been
125.30cut or was available for cutting on the land at the time of sale under the terms of the sale.
125.31Where the final scale of cut products shows that less timber was cut or was available
125.32for cutting under terms of the sale than was originally paid for, the excess payment
125.33shall be refunded from the forfeited tax sale fund upon the claim of the purchaser, to be
125.34audited and allowed by the county board as in case of other claims against the county. No
125.35timber, except hardwood pulpwood, may be removed from the parcels of land or other
125.36designated landings until scaled by a person or persons designated by the county board
126.1and approved by the commissioner of natural resources. Landings other than the parcel
126.2of land from which timber is cut may be designated for scaling by the county board by
126.3written agreement with the purchaser of the timber. The county board may, by written
126.4agreement with the purchaser and with a consumer designated by the purchaser when the
126.5timber is sold by the county auditor, and with the approval of the commissioner of natural
126.6resources, accept the consumer's scale of cut products delivered at the consumer's landing.
126.7No timber shall be removed until fully paid for in cash. Small amounts of timber not
126.8exceeding $3,000 in appraised valuation may be sold for not less than the full appraised
126.9value at private sale to individual persons without first publishing notice of sale or calling
126.10for bids, provided that in case of a sale involving a total appraised value of more than $200
126.11the sale shall be made subject to final settlement on the basis of a scale of cut products in
126.12the manner above provided and not more than two of the sales, directly or indirectly to any
126.13individual shall be in effect at one time.
126.14    (d) As directed by the county board, the county auditor may lease tax-forfeited land
126.15to individuals, corporations or organized subdivisions of the state at public or private sale,
126.16and at the prices and under the terms as the county board may prescribe, for use as cottage
126.17and camp sites and for agricultural purposes and for the purpose of taking and removing of
126.18hay, stumpage, sand, gravel, clay, rock, marl, and black dirt from the land, and for garden
126.19sites and other temporary uses provided that no leases shall be for a period to exceed ten
126.20years; provided, further that any leases involving a consideration of more than $12,000 per
126.21year, except to an organized subdivision of the state shall first be offered at public sale in
126.22the manner provided herein for sale of timber. Upon the sale of any leased land, it shall
126.23remain subject to the lease for not to exceed one year from the beginning of the term of the
126.24lease. Any rent paid by the lessee for the portion of the term cut off by the cancellation
126.25shall be refunded from the forfeited tax sale fund upon the claim of the lessee, to be
126.26audited and allowed by the county board as in case of other claims against the county.
126.27    (e) As directed by the county board, the county auditor may lease tax-forfeited land
126.28to individuals, corporations, or organized subdivisions of the state at public or private sale,
126.29at the prices and under the terms as the county board may prescribe, for the purpose
126.30of taking and removing for use for road construction and other purposes tax-forfeited
126.31stockpiled iron-bearing material. The county auditor must determine that the material is
126.32needed and suitable for use in the construction or maintenance of a road, tailings basin,
126.33settling basin, dike, dam, bank fill, or other works on public or private property, and
126.34that the use would be in the best interests of the public. No lease shall exceed ten years.
126.35The use of a stockpile for these purposes must first be approved by the commissioner of
126.36natural resources. The request shall be deemed approved unless the requesting county
127.1is notified to the contrary by the commissioner of natural resources within six months
127.2after receipt of a request for approval for use of a stockpile. Once use of a stockpile has
127.3been approved, the county may continue to lease it for these purposes until approval is
127.4withdrawn by the commissioner of natural resources.
127.5    (f) The county auditor, with the approval of the county board is authorized to grant
127.6permits, licenses, and leases to tax-forfeited lands for the depositing of stripping, lean ores,
127.7tailings, or waste products from mines or ore milling plants, or to use for facilities needed
127.8to recover iron-bearing oxides from tailings basins or stockpiles, or for a buffer area
127.9needed for a mining operation, upon the conditions and for the consideration and for the
127.10period of time, not exceeding 25 years, as the county board may determine. The permits,
127.11licenses, or leases are subject to approval by the commissioner of natural resources.
127.12    (g) Any person who removes any timber from tax-forfeited land before said timber
127.13has been scaled and fully paid for as provided in this subdivision is guilty of a misdemeanor.
127.14    (h) The county auditor may, with the approval of the county board, and without first
127.15offering at public sale, grant leases, for a term not exceeding 25 years, for the removal of
127.16peat and for the production or removal of farm-grown closed-loop biomass as defined in
127.17section 216B.2424, subdivision 1, or short-rotation woody crops from tax-forfeited lands
127.18upon the terms and conditions as the county board may prescribe. Any lease for the removal
127.19of peat, farm-grown closed-loop biomass, or short-rotation woody crops from tax-forfeited
127.20lands must first be reviewed and approved by the commissioner of natural resources if the
127.21lease covers 320 or more acres. No lease for the removal of peat, farm-grown closed-loop
127.22biomass, or short-rotation woody crops shall be made by the county auditor pursuant to this
127.23section without first holding a public hearing on the auditor's intention to lease. One printed
127.24notice in a legal newspaper in the county at least ten days before the hearing, and posted
127.25notice in the courthouse at least 20 days before the hearing shall be given of the hearing.
127.26    (i) Notwithstanding any provision of paragraph (c) to the contrary, the St. Louis
127.27County auditor may, at the discretion of the county board, sell timber to the party who
127.28bids the highest price for all the several kinds of timber, as provided for sales by the
127.29commissioner of natural resources under section 90.14. Bids offered over and above the
127.30appraised price need not be applied proportionately to the appraised price of each of
127.31the different species of timber.
127.32    (j) In lieu of any payment or deposit required in paragraph (b), as directed by the
127.33county board and under terms set by the county board, the county auditor may accept an
127.34irrevocable bank letter of credit in the amount equal to the amount otherwise determined in
127.35paragraph (b). If an irrevocable bank letter of credit is provided under this paragraph, at the
127.36written request of the purchaser, the county may periodically allow the bank letter of credit
128.1to be reduced by an amount proportionate to the value of timber that has been harvested
128.2and for which the county has received payment. The remaining amount of the bank letter
128.3of credit after a reduction under this paragraph must not be less than 20 percent of the value
128.4of the timber purchased. If an irrevocable bank letter of credit or cash deposit is provided
128.5for the down payment required in paragraph (b), and no cutting of timber has taken place
128.6on the contract for which a letter of credit has been provided, the county may allow the
128.7transfer of the letter of credit to any other contract issued to the contract holder by the
128.8county under this chapter to which the contract holder requests in writing that it be credited.

128.9    Sec. 96. [383B.761] DISCONTINUANCE OF HENNEPIN COUNTY SOIL AND
128.10WATER CONSERVATION DISTRICT; TRANSFER OF DUTIES.
128.11    Subdivision 1. Petition. Notwithstanding section 103C.225, the Hennepin County
128.12Board of Commissioners may petition the Minnesota Board of Water and Soil Resources
128.13to discontinue the Hennepin Soil and Water Conservation District and transfer the duties
128.14and authorities of the district to the Hennepin County Board of Commissioners. The
128.15Minnesota Board of Water and Soil Resources has 60 days from the receipt of the petition
128.16to conduct its review. The Minnesota Board of Water and Soil Resources shall make
128.17its determination regarding the petition no later than its first regular meeting following
128.18the 60-day review period.
128.19    Subd. 2. Discontinuance. The Minnesota Board of Water and Soil Resources shall
128.20review the petition submitted under subdivision 1 to determine whether progress toward
128.21the goals identified in section 103C.005 can be achieved by discontinuing the Hennepin
128.22Soil and Water Conservation District and transferring the duties and authorities of the
128.23district to the Hennepin County Board of Commissioners. If the Board of Water and Soil
128.24Resources determines that progress toward the goals identified in section 103C.005 can
128.25be achieved by the discontinuance of the district and the transfer of district duties and
128.26authorities to the Hennepin County Board of Commissioners, the Board of Water and Soil
128.27Resources shall order the discontinuance of the Hennepin Soil and Water Conservation
128.28District. The order shall become effective within 60 days from the date of the order. The
128.29Minnesota Board of Water and Soil Resources may discontinue the Hennepin Soil and
128.30Water Conservation District without a referendum.
128.31    Subd. 3. Transfer of duties and authorities. Upon discontinuance of the
128.32Hennepin Soil and Water Conservation District by the Minnesota Board of Water and Soil
128.33Resources, the Hennepin County Board of Commissioners has the duties and authorities
128.34of a soil and water conservation district. The Hennepin County Board of Commissioners
128.35may assign these duties and responsibilities to the Hennepin County Department of
129.1Environmental Services or other county departments as deemed appropriate by the county
129.2board. All contracts in effect on the date of the discontinuance of the district, to which
129.3the Hennepin Soil and Water Conservation District is a party, remain in force and effect
129.4for the period provided in the contracts. Hennepin County shall be substituted for the
129.5Hennepin Soil and Water Conservation District as party to the contracts and succeed
129.6to the district's rights and duties.
129.7    Subd. 4. Transfer of assets. The Hennepin Conservation District Board of
129.8Supervisors shall transfer the assets of the district to the Hennepin County Board of
129.9Commissioners no later than 60 days from the date of the order. The Hennepin County
129.10Board of Commissioners shall use the transferred assets for purposes of implementing the
129.11transferred duties and authorities.
129.12    Subd. 5. Grants. Upon discontinuance of the Hennepin Soil and Water
129.13Conservation District by the Minnesota Board of Water and Soil Resources, Hennepin
129.14County has the eligibility of a soil and water conservation district for state grant funds.
129.15    Subd. 6. Reestablishment. The Hennepin County Board of Commissioners may
129.16petition the Minnesota Board of Water and Soil Resources to reestablish the Hennepin
129.17Soil and Water Conservation District. Alternatively, the Minnesota Board of Water
129.18and Soil Resources under its authority in section 103C.201, and after giving notice
129.19of corrective actions and time to implement the corrective actions, may reestablish the
129.20Hennepin Soil and Water Conservation District if it determines the goals identified in
129.21section 103C.005 are not being achieved. The Minnesota Board of Water and Soil
129.22Resources may reestablish the Hennepin Soil and Water Conservation District under this
129.23subdivision without a referendum.
129.24EFFECTIVE DATE; LOCAL APPROVAL.This section is effective the day after
129.25the governing body of Hennepin County and its chief clerical officer timely complete their
129.26compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

129.27    Sec. 97. Minnesota Statutes 2012, section 473.846, is amended to read:
129.28473.846 REPORTS REPORT TO LEGISLATURE.
129.29The agency shall submit to the senate and house of representatives committees
129.30having jurisdiction over environment and natural resources separate reports a report
129.31 describing the activities for which money for landfill abatement has been spent under
129.32sections section 473.844 and 473.845. The report for section 473.844 expenditures shall be
129.33included in the report required by section 115A.411, and shall include recommendations
129.34on the future management and use of the metropolitan landfill abatement account. By
130.1December 31 of each year, the commissioner shall submit the report for section 473.845
130.2 on contingency action trust fund activities.

130.3    Sec. 98. Laws 2010, chapter 361, article 3, section 7, is amended to read:
130.4    Sec. 7. PARKS.
130.5The Minneapolis Park and Recreation Board may acquire all or part of the entire
130.6property known as the Scherer Brothers Lumber Yard for a metropolitan area regional
130.7park and may allocate any future appropriations to the board from the parks and trails
130.8fund to acquire the property. Notwithstanding Minnesota Rules, part 6115.0190, subpart
130.93 or 5, item E, or 6115.0191, subpart 8, item A, the Minneapolis Park and Recreation
130.10Board is authorized to recreate and restore Hall's Island or such similar island located at
130.11approximately river mile 855 on the Mississippi River, just north of the Plymouth Avenue
130.12bridge, at a project site in Section 15, Township 29 North, Range 24 West, Hennepin
130.13County, Minnesota, on or adjacent to the property known as the Scherer Brothers Lumber
130.14Yard. The commissioner of natural resources shall grant any authorizations, permits, or
130.15permissions necessary to effectuate the project, provided that the project is consistent with
130.16all other standards and guidelines in Minnesota Rules, chapter 6115. If the project is
130.17not constructed within six years of the effective date of this act, the authority provided
130.18in this section to reconstruct Hall's Island expires. The recreation and restoration shall
130.19be coordinated with future efforts to restore habitat along the Mississippi River. Once
130.20recreated and restored, Hall's Island shall remain in public ownership in perpetuity and
130.21shall be maintained as a natural habitat island for birds and other wildlife. Public access
130.22and recreational activities shall be limited to a walking trail to protect the island's wildlife
130.23and habitat.
130.24EFFECTIVE DATE.This section is effective the day after the Minneapolis Park
130.25and Recreation Board timely completes compliance with Minnesota Statutes, section
130.26645.021, subdivisions 2 and 3.

130.27    Sec. 99. NORTH MISSISSIPPI REGIONAL PARK.
130.28(a) The boundaries of the North Mississippi Regional Park are extended to include
130.29the approximately 20.82 acres of land adjacent to the existing park known as Webber Park
130.30and that part of Shingle Creek that flows through Webber Park and continues through
130.31North Mississippi Regional Park into the Mississippi River.
130.32(b) Funds appropriated for North Mississippi Regional Park may be expended to
130.33provide for visitor amenities, including construction of a natural filtration swimming
130.34pool and a building for park users.
131.1EFFECTIVE DATE.This section is effective the day after the governing body of
131.2the Minneapolis Park and Recreation Board and its chief clerical officer timely complete
131.3their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

131.4    Sec. 100. WASTEWATER TREATMENT SYSTEMS; BENEFICIAL USE.
131.5The Pollution Control Agency shall apply the following criteria to wastewater
131.6treatment system projects: at least 30 points shall be assigned if a project will result
131.7in an agency-approved beneficial use of treated wastewater that results in reducing or
131.8replacing the use of groundwater, surface water, or potable water, provided that the project
131.9component resulting in the beneficial use of wastewater accounts for at least 20 percent of
131.10the total eligible cost of the project. Projects receiving points for land discharge beneficial
131.11use shall not receive an additional 30 points.
131.12EFFECTIVE DATE.This section is effective August 1, 2013.

131.13    Sec. 101. PERMIT CANCELLATION.
131.14Upon written request submitted by a permit holder to the commissioner of natural
131.15resources on or before June 1, 2015, the commissioner shall cancel any provision in a
131.16timber sale permit sold prior to September 1, 2012, that requires the security payment for
131.17or removal of all or part of the balsam fir when the permit contains at least 50 cords of
131.18balsam fir. The remaining provisions of the permit remain in effect. The permit holder
131.19may be required to fell or pile the balsam fir to meet management objectives.

131.20    Sec. 102. GROUNDWATER SUSTAINABILITY RECOMMENDATIONS.
131.21The commissioner of natural resources shall develop recommendations on
131.22additional tools needed to fully implement the groundwater sustainability requirements
131.23of Minnesota Statutes, section 103G.287, subdivisions 3 and 5. The recommendations
131.24shall be submitted to the chairs of the environment and natural resources policy and
131.25finance committees by January 15, 2014, and shall include draft legislative language to
131.26implement the recommendations.

131.27    Sec. 103. RULEMAKING; POSSESSION AND TRANSPORTATION OF
131.28WILDLIFE.
131.29The commissioner of natural resources may use the good cause exemption under
131.30Minnesota Statutes, section 14.388, subdivision 1, clause (3), to adopt rules to conform
131.31with the changes to Minnesota Statutes 2012, section 97A.401, subdivision 3, contained in
132.1this article, and Minnesota Statutes, section 14.386, does not apply except as provided
132.2under Minnesota Statutes, section 14.388.

132.3    Sec. 104. RULEMAKING; DISPLAY OF PADDLE BOARD LICENSE
132.4NUMBERS.
132.5(a) The commissioner of natural resources shall amend Minnesota Rules, parts
132.66110.0200, 6110.0300, and 6110.0400, to exempt paddle boards from the requirement to
132.7display license certificates and license numbers, in the same manner as other nonmotorized
132.8watercraft such as canoes and kayaks.
132.9(b) The commissioner may use the good cause exemption under Minnesota Statutes,
132.10section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
132.11Statutes, section 14.386, does not apply except as provided under Minnesota Statutes,
132.12section 14.388.

132.13    Sec. 105. RULES; SILICA SAND.
132.14(a) The commissioner of the Pollution Control Agency shall adopt rules pertaining
132.15to the control of particulate emissions from silica sand projects. The rulemaking is exempt
132.16from Minnesota Statutes, section 14.125.
132.17(b) The commissioner of natural resources shall adopt rules pertaining to the
132.18reclamation of silica sand mines. The rulemaking is exempt from Minnesota Statutes,
132.19section 14.125.
132.20(c) By January 1, 2014, the Department of Health shall adopt an air quality
132.21health-based value for silica sand.
132.22(d) The Environmental Quality Board shall amend its rules for environmental
132.23review, adopted under Minnesota Statutes, chapter 116D, for silica sand mining and
132.24processing to take into account the increased activity in the state and concerns over the
132.25size of specific operations. The Environmental Quality Board shall consider whether
132.26the requirements of Minnesota Statutes, section 116C.991, should remain part of the
132.27environmental review requirements for silica sand and whether the requirements should
132.28be different for different geographic areas of the state. The rulemaking is exempt from
132.29Minnesota Statutes, section 14.125.
132.30EFFECTIVE DATE.This section is effective the day following final enactment.

132.31    Sec. 106. INTERIM ORDINANCE EXTENSION OR RENEWAL.
132.32Notwithstanding Minnesota Statutes, sections 394.34 and 462.355, subdivision
132.334, until March 1, 2015, a local unit of government may extend for one year an interim
133.1ordinance or renew an expired ordinance prohibiting new or expanded silica sand projects,
133.2as defined in Minnesota Statutes, section 116C.99, and extend the ordinance an additional
133.3year by resolution of the local unit of government.
133.4EFFECTIVE DATE.This section is effective retroactively from March 1, 2013.

133.5    Sec. 107. RULEMAKING; FUGITIVE EMISSIONS.
133.6(a) The commissioner of the Pollution Control Agency shall amend Minnesota
133.7Rules, part 7005.0100, subpart 35a, to read:
133.8""Potential emissions" or "potential to emit" means the maximum capacity while
133.9operating at the maximum hours of operation of an emissions unit, emission facility, or
133.10stationary source to emit a pollutant under its physical and operational design. Any physical
133.11or operational limitation on the capacity of the stationary source to emit a pollutant,
133.12including air pollution control equipment and restriction on hours of operation or on the
133.13type or amount of material combusted, stored, or processed, must be treated as part of its
133.14design if the limitation or the effect it would have on emissions is federally enforceable.
133.15Secondary emissions must not be counted in determining the potential to emit of
133.16an emissions unit, emission facility, or stationary source. Fugitive emissions shall not be
133.17counted when determining potential to emit, unless required under Minnesota Rules, part
133.187007.0200, subpart 2, item B, or applicable federal regulation."
133.19(b) The commissioner may use the good cause exemption under Minnesota Statutes,
133.20section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
133.21Statutes, section 14.386, does not apply, except as provided under Minnesota Statutes,
133.22section 14.388.

133.23    Sec. 108. REPEALER.
133.24(a) Minnesota Statutes 2012, sections 90.163; 90.173; 90.41, subdivision 2; and
133.25103G.265, subdivision 2a, and Minnesota Rules, parts 7021.0010, subparts 1, 2, 4, and
133.265; 7021.0020; 7021.0030; 7021.0040; 7021.0050, subpart 5; 9210.0300; 9210.0310;
133.279210.0320; 9210.0330; 9210.0340; 9210.0350; 9210.0360; 9210.0370; 9210.0380; and
133.289220.0530, subpart 6, are repealed.
133.29(b) Laws 2011, First Special Session chapter 2, article 4, section 30, is repealed.

134.1ARTICLE 5
134.2SANITARY DISTRICTS

134.3    Section 1. Minnesota Statutes 2012, section 275.066, is amended to read:
134.4275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
134.5    For the purposes of property taxation and property tax state aids, the term "special
134.6taxing districts" includes the following entities:
134.7    (1) watershed districts under chapter 103D;
134.8    (2) sanitary districts under sections 115.18 to 115.37 442A.01 to 442A.29;
134.9    (3) regional sanitary sewer districts under sections 115.61 to 115.67;
134.10    (4) regional public library districts under section 134.201;
134.11    (5) park districts under chapter 398;
134.12    (6) regional railroad authorities under chapter 398A;
134.13    (7) hospital districts under sections 447.31 to 447.38;
134.14    (8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
134.15    (9) Duluth Transit Authority under sections 458A.21 to 458A.37;
134.16    (10) regional development commissions under sections 462.381 to 462.398;
134.17    (11) housing and redevelopment authorities under sections 469.001 to 469.047;
134.18    (12) port authorities under sections 469.048 to 469.068;
134.19    (13) economic development authorities under sections 469.090 to 469.1081;
134.20    (14) Metropolitan Council under sections 473.123 to 473.549;
134.21    (15) Metropolitan Airports Commission under sections 473.601 to 473.680;
134.22    (16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
134.23    (17) Morrison County Rural Development Financing Authority under Laws 1982,
134.24chapter 437, section 1;
134.25    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
134.26    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211,
134.27sections 1 to 6;
134.28    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article
134.295, section 39;
134.30    (21) Middle Mississippi River Watershed Management Organization under sections
134.31103B.211 and 103B.241;
134.32    (22) emergency medical services special taxing districts under section 144F.01;
134.33    (23) a county levying under the authority of section 103B.241, 103B.245, or
134.34103B.251 ;
135.1    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
135.2under Laws 2003, First Special Session chapter 21, article 4, section 12;
135.3    (25) an airport authority created under section 360.0426; and
135.4    (26) any other political subdivision of the state of Minnesota, excluding counties,
135.5school districts, cities, and towns, that has the power to adopt and certify a property tax
135.6levy to the county auditor, as determined by the commissioner of revenue.

135.7    Sec. 2. [442A.01] DEFINITIONS.
135.8    Subdivision 1. Applicability. For the purposes of this chapter, the terms defined
135.9in this section have the meanings given.
135.10    Subd. 2. Chief administrative law judge. "Chief administrative law judge" means
135.11the chief administrative law judge of the Office of Administrative Hearings or the delegate
135.12of the chief administrative law judge under section 14.48.
135.13    Subd. 3. District. "District" means a sanitary district created under this chapter or
135.14under Minnesota Statutes 2012, sections 115.18 to 115.37.
135.15    Subd. 4. Municipality. "Municipality" means a city, however organized.
135.16    Subd. 5. Property owner. "Property owner" means the fee owner of land, or the
135.17beneficial owner of land whose interest is primarily one of possession and enjoyment.
135.18Property owner includes, but is not limited to, vendees under a contract for deed and
135.19mortgagors. Any reference to a percentage of property owners means in number.
135.20    Subd. 6. Related governing body. "Related governing body" means the governing
135.21body of a related governmental subdivision and, in the case of an organized town, means
135.22the town board.
135.23    Subd. 7. Related governmental subdivision. "Related governmental subdivision"
135.24means a municipality or organized town wherein there is a territorial unit of a district or, in
135.25the case of an unorganized area, the county.
135.26    Subd. 8. Territorial unit. "Territorial unit" means all that part of a district situated
135.27within a single municipality, within a single organized town outside of a municipality, or,
135.28in the case of an unorganized area, within a single county.

135.29    Sec. 3. [442A.015] APPLICABILITY.
135.30All new sanitary district formations proposed and all sanitary districts previously
135.31formed under Minnesota Statutes 2012, sections 115.18 to 115.37, must comply with this
135.32chapter, including annexations to, detachments from, and dissolutions of sanitary districts
135.33previously formed under Minnesota Statutes 2012, sections 115.18 to 115.37.

136.1    Sec. 4. [442A.02] SANITARY DISTRICTS; PROCEDURES AND AUTHORITY.
136.2    Subdivision 1. Duty of chief administrative law judge. The chief administrative
136.3law judge shall conduct proceedings, make determinations, and issue orders for the
136.4creation of a sanitary district formed under this chapter or the annexation, detachment,
136.5or dissolution of a sanitary district previously formed under Minnesota Statutes 2012,
136.6sections 115.18 to 115.37.
136.7    Subd. 2. Consolidation of proceedings. The chief administrative law judge may
136.8order the consolidation of separate proceedings in the interest of economy and expedience.
136.9    Subd. 3. Contracts, consultants. The chief administrative law judge may contract
136.10with regional, state, county, or local planning commissions and hire expert consultants to
136.11provide specialized information and assistance.
136.12    Subd. 4. Powers of conductor of proceedings. Any person conducting a
136.13proceeding under this chapter may administer oaths and affirmations; receive testimony
136.14of witnesses, and the production of papers, books, and documents; examine witnesses;
136.15and receive and report evidence. Upon the written request of a presiding administrative
136.16law judge or a party, the chief administrative law judge may issue a subpoena for the
136.17attendance of a witness or the production of books, papers, records, or other documents
136.18material to any proceeding under this chapter. The subpoena is enforceable through the
136.19district court in the district in which the subpoena is issued.
136.20    Subd. 5. Rulemaking authority. The chief administrative law judge may adopt
136.21rules that are reasonably necessary to carry out the duties and powers imposed upon the
136.22chief administrative law judge under this chapter. The chief administrative law judge may
136.23initially adopt rules according to section 14.386. Notwithstanding section 16A.1283, the
136.24chief administrative law judge may adopt rules establishing fees.
136.25    Subd. 6. Schedule of filing fees. The chief administrative law judge may prescribe
136.26by rule a schedule of filing fees for any petitions filed under this chapter.
136.27    Subd. 7. Request for hearing transcripts; costs. Any party may request the chief
136.28administrative law judge to cause a transcript of the hearing to be made. Any party
136.29requesting a copy of the transcript is responsible for its costs.
136.30    Subd. 8. Compelled meetings; report. (a) In any proceeding under this chapter,
136.31the chief administrative law judge or conductor of the proceeding may at any time in the
136.32process require representatives from any petitioner, property owner, or involved city, town,
136.33county, political subdivision, or other governmental entity to meet together to discuss
136.34resolution of issues raised by the petition or order that confers jurisdiction on the chief
136.35administrative law judge and other issues of mutual concern. The chief administrative
136.36law judge or conductor of the proceeding may determine which entities are required
137.1to participate in these discussions. The chief administrative law judge or conductor of
137.2the proceeding may require that the parties meet at least three times during a 60-day
137.3period. The parties shall designate a person to report to the chief administrative law
137.4judge or conductor of the proceeding on the results of the meetings immediately after the
137.5last meeting. The parties may be granted additional time at the discretion of the chief
137.6administrative law judge or conductor of the proceedings.
137.7(b) Any proposed resolution or settlement of contested issues that results in a
137.8sanitary district formation, annexation, detachment, or dissolution; places conditions on
137.9any future sanitary district formation, annexation, detachment, or dissolution; or results in
137.10the withdrawal of an objection to a pending proceeding or the withdrawal of a pending
137.11proceeding must be filed with the chief administrative law judge and is subject to the
137.12applicable procedures and statutory criteria of this chapter.
137.13    Subd. 9. Permanent official record. The chief administrative law judge shall
137.14provide information about sanitary district creations, annexations, detachments, and
137.15dissolutions to the Minnesota Pollution Control Agency. The Minnesota Pollution Control
137.16Agency is responsible for maintaining the official record, including all documentation
137.17related to the processes.
137.18    Subd. 10. Shared program costs and fee revenue. The chief administrative
137.19law judge and the Minnesota Pollution Control Agency shall agree on an amount to be
137.20transferred from the Minnesota Pollution Control Agency to the chief administrative law
137.21judge to pay for administration of this chapter, including publication and notification costs.
137.22Sanitary district fees collected by the chief administrative law judge shall be deposited in
137.23the environmental fund.
137.24EFFECTIVE DATE.Subdivision 5 is effective the day following final enactment.

137.25    Sec. 5. [442A.03] FILING OF MAPS IN SANITARY DISTRICT PROCEEDINGS.
137.26Any party initiating a sanitary district proceeding that includes platted land shall file
137.27with the chief administrative law judge maps which are necessary to support and identify
137.28the land description. The maps shall include copies of plats.

137.29    Sec. 6. [442A.04] SANITARY DISTRICT CREATION.
137.30    Subdivision 1. Sanitary district creation. (a) A sanitary district may be created
137.31under this chapter for any territory embracing an area or a group of two or more adjacent
137.32areas, whether contiguous or separate, but not situated entirely within the limits of a
137.33single municipality. The proposed sanitary district must promote the public health and
137.34welfare by providing an adequate and efficient system and means of collecting, conveying,
138.1pumping, treating, and disposing of domestic sewage and garbage and industrial wastes
138.2within the district. When the chief administrative law judge or the Minnesota Pollution
138.3Control Agency finds that there is need throughout the territory for the accomplishment
138.4of these purposes; that these purposes can be effectively accomplished on an equitable
138.5basis by a district if created; and that the creation and maintenance of a district will be
138.6administratively feasible and in furtherance of the public health, safety, and welfare, the
138.7chief administrative law judge shall make an order creating the sanitary district. A sanitary
138.8district is administratively feasible under this section if the district has the financial and
138.9managerial resources needed to deliver adequate and efficient sanitary sewer services
138.10within the proposed district.
138.11(b) Notwithstanding paragraph (a), no district shall be created within 25 miles of the
138.12boundary of any city of the first class without the approval of the governing body thereof
138.13and the approval of the governing body of each and every municipality in the proposed
138.14district by resolution filed with the chief administrative law judge.
138.15(c) If the chief administrative law judge and the Minnesota Pollution Control Agency
138.16disagree on the need to create a sanitary district, they must determine whether not allowing
138.17the sanitary district formation will have a detrimental effect on the environment. If it is
138.18determined that the sanitary district formation will prevent environmental harm, the sanitary
138.19district creation or connection to an existing wastewater treatment system must occur.
138.20    Subd. 2. Proceeding to create sanitary district. (a) A proceeding for the creation
138.21of a district may be initiated by a petition to the chief administrative law judge containing
138.22the following:
138.23(1) a request for creation of the proposed district;
138.24(2) the name proposed for the district, to include the words "sanitary district";
138.25(3) a legal description of the territory of the proposed district, including justification
138.26for inclusion or exclusion for all parcels;
138.27(4) addresses of every property owner within the proposed district boundaries as
138.28provided by the county auditor, with certification from the county auditor; two sets of
138.29address labels for said owners; and a list of e-mail addresses for said owners, if available;
138.30(5) a statement showing the existence in the territory of the conditions requisite for
138.31creation of a district as prescribed in subdivision 1;
138.32(6) a statement of the territorial units represented by and the qualifications of the
138.33respective signers; and
138.34(7) the post office address of each signer, given under the signer's signature.
139.1A petition may consist of separate writings of like effect, each signed by one or more
139.2qualified persons, and all such writings, when filed, shall be considered together as a
139.3single petition.
139.4(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
139.5proposed creation of the district. At the meeting, information must be provided, including
139.6a description of the district's proposed structure, bylaws, territory, ordinances, budget, and
139.7charges and a description of the territory of the proposed district, including justification
139.8for inclusion or exclusion for all parcels. Notice of the meeting must be published for two
139.9successive weeks in a qualified newspaper, as defined under chapter 331A, published
139.10within the territory of the proposed district or, if there is no qualified newspaper published
139.11within the territory, in a qualified newspaper of general circulation in the territory, and
139.12must be posted for two weeks in each territorial unit of the proposed district and on the
139.13Web site of the proposed district, if one exists. Notice of the meeting must be mailed or
139.14e-mailed at least three weeks prior to the meeting to all property tax billing addresses for
139.15all parcels included in the proposed district. The following must be submitted to the chief
139.16administrative law judge with the petition:
139.17(1) a record of the meeting, including copies of all information provided at the
139.18meeting;
139.19(2) a copy of the mailing list provided by the county auditor and used to notify
139.20property owners of the meeting;
139.21(3) a copy of the e-mail list used to notify property owners of the meeting;
139.22(4) the printer's affidavit of publication of public meeting notice;
139.23(5) an affidavit of posting the public meeting notice with information on dates and
139.24locations of posting; and
139.25(6) the minutes or other record of the public meeting documenting that the following
139.26topics were discussed: printer's affidavit of publication of each resolution, with a copy
139.27of the resolution from the newspaper attached; and the affidavit of resolution posting
139.28on the town or proposed district Web site.
139.29(c) Every petition must be signed as follows:
139.30(1) for each municipality wherein there is a territorial unit of the proposed district,
139.31by an authorized officer pursuant to a resolution of the municipal governing body;
139.32(2) for each organized town wherein there is a territorial unit of the proposed district,
139.33by an authorized officer pursuant to a resolution of the town board;
139.34(3) for each county wherein there is a territorial unit of the proposed district consisting
139.35of an unorganized area, by an authorized officer pursuant to a resolution of the county
139.36board or by at least 20 percent of the voters residing and owning land within the unit.
140.1(d) Each resolution must be published in the official newspaper of the governing
140.2body adopting it and becomes effective 40 days after publication, unless within said
140.3period there shall be filed with the governing body a petition signed by qualified electors
140.4of a territorial unit of the proposed district, equal in number to five percent of the number
140.5of electors voting at the last preceding election of the governing body, requesting a
140.6referendum on the resolution, in which case the resolution may not become effective until
140.7approved by a majority of the qualified electors voting at a regular election or special
140.8election that the governing body may call. The notice of an election and the ballot to be
140.9used must contain the text of the resolution followed by the question: "Shall the above
140.10resolution be approved?"
140.11(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
140.12the signer's landowner status as shown by the county auditor's tax assessment records,
140.13certified by the auditor, shall be attached to or endorsed upon the petition.
140.14(f) At any time before publication of the public notice required in subdivision 3,
140.15additional signatures may be added to the petition or amendments of the petition may
140.16be made to correct or remedy any error or defect in signature or otherwise except a
140.17material error or defect in the description of the territory of the proposed district. If the
140.18qualifications of any signer of a petition are challenged, the chief administrative law judge
140.19shall determine the challenge forthwith on the allegations of the petition, the county
140.20auditor's certificate of land ownership, and such other evidence as may be received.
140.21    Subd. 3. Notice of intent to create sanitary district. (a) Upon receipt of a petition
140.22and the record of the public meeting required under subdivision 2, the chief administrative
140.23law judge shall publish a notice of intent to create the proposed sanitary district in the State
140.24Register and mail or e-mail information of that publication to each property owner in the
140.25affected territory at the owner's address as given by the county auditor. The information
140.26must state the date that the notice will appear in the State Register and give the Web site
140.27location for the State Register. The notice must:
140.28(1) describe the petition for creation of the district;
140.29(2) describe the territory affected by the petition;
140.30(3) allow 30 days for submission of written comments on the petition;
140.31(4) state that a person who objects to the petition may submit a written request for
140.32hearing to the chief administrative law judge within 30 days of the publication of the
140.33notice in the State Register; and
140.34(5) state that if a timely request for hearing is not received, the chief administrative
140.35law judge may make a decision on the petition.
141.1(b) If 50 or more individual timely requests for hearing are received, the chief
141.2administrative law judge must hold a hearing on the petition according to the contested
141.3case provisions of chapter 14. The sanitary district proposers are responsible for paying all
141.4costs involved in publicizing and holding a hearing on the petition.
141.5    Subd. 4. Hearing time, place. If a hearing is required pursuant to subdivision 3, the
141.6chief administrative law judge shall designate a time and place for a hearing according
141.7to section 442A.13.
141.8    Subd. 5. Relevant factors. (a) In arriving at a decision, the chief administrative law
141.9judge shall consider the following factors:
141.10(1) administrative feasibility under subdivision 1, paragraph (a);
141.11(2) public health, safety, and welfare impacts;
141.12(3) alternatives for managing the public health impacts;
141.13(4) equities of the petition proposal;
141.14(5) contours of the petition proposal; and
141.15(6) public notification of and interaction on the petition proposal.
141.16(b) Based on the factors in paragraph (a), the chief administrative law judge may
141.17order the sanitary district creation on finding that:
141.18(1) the proposed district is administratively feasible;
141.19(2) the proposed district provides a long-term, equitable solution to pollution
141.20problems affecting public health, safety, and welfare;
141.21(3) property owners within the proposed district were provided notice of the
141.22proposed district and opportunity to comment on the petition proposal; and
141.23(4) the petition complied with the requirements of all applicable statutes and rules
141.24pertaining to sanitary district creation.
141.25(c) The chief administrative law judge may alter the boundaries of the proposed
141.26sanitary district by increasing or decreasing the area to be included or may exclude
141.27property that may be better served by another unit of government. The chief administrative
141.28law judge may also alter the boundaries of the proposed district so as to follow visible,
141.29clearly recognizable physical features for municipal boundaries.
141.30(d) The chief administrative law judge may deny sanitary district creation if the area,
141.31or a part thereof, would be better served by an alternative method.
141.32(e) In all cases, the chief administrative law judge shall set forth the factors that are
141.33the basis for the decision.
141.34    Subd. 6. Findings; order. After the public notice period or the public hearing, if
141.35required under subdivision 3, and based on the petition, any public comments received,
141.36and, if a hearing was held, the hearing record, the chief administrative law judge shall
142.1make findings of fact and conclusions determining whether the conditions requisite for the
142.2creation of a district exist in the territory described in the petition. If the chief administrative
142.3law judge finds that the conditions exist, the judge may make an order creating a district
142.4for the territory described in that petition under the name proposed in the petition or such
142.5other name, including the words "sanitary district," as the judge deems appropriate.
142.6    Subd. 7. Denial of petition. If the chief administrative law judge, after conclusion
142.7of the public notice period or holding a hearing, if required, determines that the creation of
142.8a district in the territory described in the petition is not warranted, the judge shall make
142.9an order denying the petition. The chief administrative law judge shall give notice of the
142.10denial by mail or e-mail to each signer of the petition. No petition for the creation of a
142.11district consisting of the same territory shall be entertained within a year after the date of
142.12an order under this subdivision. Nothing in this subdivision precludes action on a petition
142.13for the creation of a district embracing part of the territory with or without other territory.
142.14    Subd. 8. Notice of order creating sanitary district. The chief administrative law
142.15judge shall publish a notice in the State Register of the final order creating a sanitary
142.16district, referring to the date of the order and describing the territory of the district, and
142.17shall mail or e-mail information of the publication to each property owner in the affected
142.18territory at the owner's address as given by the county auditor. The information must state
142.19the date that the notice will appear in the State Register and give the Web site location
142.20for the State Register. The notice must:
142.21(1) describe the petition for creation of the district;
142.22(2) describe the territory affected by the petition; and
142.23(3) state that a certified copy of the order shall be delivered to the secretary of state
142.24for filing ten days after public notice of the order in the State Register.
142.25    Subd. 9. Filing. Ten days after public notice of the order in the State Register, the
142.26chief administrative law judge shall deliver a certified copy of the order to the secretary
142.27of state for filing. Thereupon, the creation of the district is deemed complete, and it
142.28shall be conclusively presumed that all requirements of law relating thereto have been
142.29complied with. The chief administrative law judge shall also transmit a certified copy of
142.30the order for filing to the county auditor of each county and the clerk or recorder of each
142.31municipality and organized town wherein any part of the territory of the district is situated
142.32and to the secretary of the district board when elected.

142.33    Sec. 7. [442A.05] SANITARY DISTRICT ANNEXATION.
143.1    Subdivision 1. Annexation. (a) A sanitary district annexation may occur under
143.2this chapter for any area adjacent to an existing district upon a petition to the chief
143.3administrative law judge stating the grounds therefor as provided in this section.
143.4(b) The proposed annexation area must embrace an area or a group of two or more
143.5adjacent areas, whether contiguous or separate, but not situated entirely within the limits
143.6of a single municipality. The proposed annexation must promote public health and
143.7welfare by providing an adequate and efficient system and means of collecting, conveying,
143.8pumping, treating, and disposing of domestic sewage and garbage and industrial wastes
143.9within the district. When the chief administrative law judge or the Minnesota Pollution
143.10Control Agency finds that there is need throughout the territory for the accomplishment of
143.11these purposes, that these purposes can be effectively accomplished on an equitable basis
143.12by annexation to a district, and that the creation and maintenance of such annexation will
143.13be administratively feasible and in furtherance of the public health, safety, and welfare,
143.14the chief administrative law judge shall make an order for sanitary district annexation. An
143.15annexation is administratively feasible under this section if the district has the financial
143.16and managerial resources needed to deliver adequate and efficient sanitary sewer services
143.17within the proposed annexation.
143.18(c) Notwithstanding paragraph (b), no annexation to a district shall be approved
143.19within 25 miles of the boundary of any city of the first class without the approval
143.20of the governing body thereof and the approval of the governing body of each and
143.21every municipality in the proposed annexation area by resolution filed with the chief
143.22administrative law judge.
143.23(d) If the chief administrative law judge and the Minnesota Pollution Control Agency
143.24disagree on the need for a sanitary district annexation, they must determine whether not
143.25allowing the sanitary district annexation will have a detrimental effect on the environment.
143.26If it is determined that the sanitary district annexation will prevent environmental harm,
143.27the sanitary district annexation or connection to an existing wastewater treatment system
143.28must occur.
143.29    Subd. 2. Proceeding for annexation. (a) A proceeding for sanitary district
143.30annexation may be initiated by a petition to the chief administrative law judge containing
143.31the following:
143.32(1) a request for proposed annexation to a sanitary district;
143.33(2) a legal description of the territory of the proposed annexation, including
143.34justification for inclusion or exclusion for all parcels;
143.35(3) addresses of every property owner within the existing sanitary district and
143.36proposed annexation area boundaries as provided by the county auditor, with certification
144.1from the county auditor; two sets of address labels for said owners; and a list of e-mail
144.2addresses for said owners, if available;
144.3(4) a statement showing the existence in such territory of the conditions requisite
144.4for annexation to a district as prescribed in subdivision 1;
144.5(5) a statement of the territorial units represented by and qualifications of the
144.6respective signers; and
144.7(6) the post office address of each signer, given under the signer's signature.
144.8A petition may consist of separate writings of like effect, each signed by one or more
144.9qualified persons, and all such writings, when filed, shall be considered together as a
144.10single petition.
144.11(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
144.12proposed annexation to a sanitary district. At the meeting, information must be provided,
144.13including a description of the existing sanitary district's structure, bylaws, territory,
144.14ordinances, budget, and charges; a description of the existing sanitary district's territory;
144.15and a description of the territory of the proposed annexation area, including justification
144.16for inclusion or exclusion for all parcels for the annexation area. Notice of the meeting
144.17must be published for two successive weeks in a qualified newspaper, as defined under
144.18chapter 331A, published within the territories of the existing sanitary district and proposed
144.19annexation area or, if there is no qualified newspaper published within those territories, in
144.20a qualified newspaper of general circulation in the territories, and must be posted for two
144.21weeks in each territorial unit of the existing sanitary district and proposed annexation area
144.22and on the Web site of the existing sanitary district, if one exists. Notice of the meeting
144.23must be mailed or e-mailed at least three weeks prior to the meeting to all property tax
144.24billing addresses for all parcels included in the existing sanitary district and proposed
144.25annexation area. The following must be submitted to the chief administrative law judge
144.26with the petition:
144.27(1) a record of the meeting, including copies of all information provided at the
144.28meeting;
144.29(2) a copy of the mailing list provided by the county auditor and used to notify
144.30property owners of the meeting;
144.31(3) a copy of the e-mail list used to notify property owners of the meeting;
144.32(4) the printer's affidavit of publication of the public meeting notice;
144.33(5) an affidavit of posting the public meeting notice with information on dates and
144.34locations of posting; and
144.35(6) the minutes or other record of the public meeting documenting that the following
144.36topics were discussed: printer's affidavit of publication of each resolution, with copy
145.1of resolution from newspaper attached; and affidavit of resolution posting on town or
145.2existing sanitary district Web site.
145.3(c) Every petition must be signed as follows:
145.4(1) by an authorized officer of the existing sanitary district pursuant to a resolution
145.5of the board;
145.6(2) for each municipality wherein there is a territorial unit of the proposed annexation
145.7area, by an authorized officer pursuant to a resolution of the municipal governing body;
145.8(3) for each organized town wherein there is a territorial unit of the proposed
145.9annexation area, by an authorized officer pursuant to a resolution of the town board; and
145.10(4) for each county wherein there is a territorial unit of the proposed annexation area
145.11consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
145.12county board or by at least 20 percent of the voters residing and owning land within the unit.
145.13(d) Each resolution must be published in the official newspaper of the governing
145.14body adopting it and becomes effective 40 days after publication, unless within said
145.15period there shall be filed with the governing body a petition signed by qualified electors
145.16of a territorial unit of the proposed annexation area, equal in number to five percent of the
145.17number of electors voting at the last preceding election of the governing body, requesting
145.18a referendum on the resolution, in which case the resolution may not become effective
145.19until approved by a majority of the qualified electors voting at a regular election or special
145.20election that the governing body may call. The notice of an election and the ballot to be
145.21used must contain the text of the resolution followed by the question: "Shall the above
145.22resolution be approved?"
145.23(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
145.24the signer's landowner status as shown by the county auditor's tax assessment records,
145.25certified by the auditor, shall be attached to or endorsed upon the petition.
145.26(f) At any time before publication of the public notice required in subdivision 4,
145.27additional signatures may be added to the petition or amendments of the petition may be
145.28made to correct or remedy any error or defect in signature or otherwise except a material
145.29error or defect in the description of the territory of the proposed annexation area. If the
145.30qualifications of any signer of a petition are challenged, the chief administrative law judge
145.31shall determine the challenge forthwith on the allegations of the petition, the county
145.32auditor's certificate of land ownership, and such other evidence as may be received.
145.33    Subd. 3. Joint petition. Different areas may be annexed to a district in a single
145.34proceeding upon a joint petition therefor and upon compliance with the provisions of
145.35subdivisions 1 and 2 with respect to the area affected so far as applicable.
146.1    Subd. 4. Notice of intent for sanitary district annexation. (a) Upon receipt
146.2of a petition and the record of public meeting required under subdivision 2, the chief
146.3administrative law judge shall publish a notice of intent for sanitary district annexation
146.4in the State Register and mail or e-mail information of the publication to each property
146.5owner in the affected territory at the owner's address as given by the county auditor. The
146.6information must state the date that the notice will appear in the State Register and give
146.7the Web site location for the State Register. The notice must:
146.8(1) describe the petition for sanitary district annexation;
146.9(2) describe the territory affected by the petition;
146.10(3) allow 30 days for submission of written comments on the petition;
146.11(4) state that a person who objects to the petition may submit a written request for
146.12hearing to the chief administrative law judge within 30 days of the publication of the
146.13notice in the State Register; and
146.14(5) state that if a timely request for hearing is not received, the chief administrative
146.15law judge may make a decision on the petition.
146.16(b) If 50 or more individual timely requests for hearing are received, the chief
146.17administrative law judge must hold a hearing on the petition according to the contested case
146.18provisions of chapter 14. The sanitary district or annexation area proposers are responsible
146.19for paying all costs involved in publicizing and holding a hearing on the petition.
146.20    Subd. 5. Hearing time, place. If a hearing is required under subdivision 4, the
146.21chief administrative law judge shall designate a time and place for a hearing according
146.22to section 442A.13.
146.23    Subd. 6. Relevant factors. (a) In arriving at a decision, the chief administrative law
146.24judge shall consider the following factors:
146.25(1) administrative feasibility under subdivision 1, paragraph (b);
146.26(2) public health, safety, and welfare impacts;
146.27(3) alternatives for managing the public health impacts;
146.28(4) equities of the petition proposal;
146.29(5) contours of the petition proposal; and
146.30(6) public notification of and interaction on the petition proposal.
146.31(b) Based upon these factors, the chief administrative law judge may order the
146.32annexation to the sanitary district on finding that:
146.33(1) the sanitary district is knowledgeable and experienced in delivering sanitary sewer
146.34services to ratepayers and has provided quality service in a fair and cost-effective manner;
146.35(2) the proposed annexation provides a long-term, equitable solution to pollution
146.36problems affecting public health, safety, and welfare;
147.1(3) property owners within the existing sanitary district and proposed annexation
147.2area were provided notice of the proposed district and opportunity to comment on the
147.3petition proposal; and
147.4(4) the petition complied with the requirements of all applicable statutes and rules
147.5pertaining to sanitary district annexation.
147.6(c) The chief administrative law judge may alter the boundaries of the proposed
147.7annexation area by increasing or decreasing the area to be included or may exclude
147.8property that may be better served by another unit of government. The chief administrative
147.9law judge may also alter the boundaries of the proposed annexation area so as to follow
147.10visible, clearly recognizable physical features for municipal boundaries.
147.11(d) The chief administrative law judge may deny sanitary district annexation if the
147.12area, or a part thereof, would be better served by an alternative method.
147.13(e) In all cases, the chief administrative law judge shall set forth the factors that are
147.14the basis for the decision.
147.15    Subd. 7. Findings; order. (a) After the public notice period or the public hearing, if
147.16required under subdivision 4, and based on the petition, any public comments received,
147.17and, if a hearing was held, the hearing record, the chief administrative law judge shall
147.18make findings of fact and conclusions determining whether the conditions requisite for
147.19the sanitary district annexation exist in the territory described in the petition. If the chief
147.20administrative law judge finds that conditions exist, the judge may make an order for
147.21sanitary district annexation for the territory described in the petition.
147.22(b) All taxable property within the annexed area shall be subject to taxation for
147.23any existing bonded indebtedness or other indebtedness of the district for the cost of
147.24acquisition, construction, or improvement of any disposal system or other works or
147.25facilities beneficial to the annexed area to such extent as the chief administrative law judge
147.26may determine to be just and equitable, to be specified in the order for annexation. The
147.27proper officers shall levy further taxes on such property accordingly.
147.28    Subd. 8. Denial of petition. If the chief administrative law judge, after conclusion
147.29of the public notice period or holding a hearing, if required, determines that the sanitary
147.30district annexation in the territory described in the petition is not warranted, the judge shall
147.31make an order denying the petition. The chief administrative law judge shall give notice
147.32of the denial by mail or e-mail to each signer of the petition. No petition for a sanitary
147.33district annexation consisting of the same territory shall be entertained within a year
147.34after the date of an order under this subdivision. Nothing in this subdivision precludes
147.35action on a petition for a sanitary district annexation embracing part of the territory with
147.36or without other territory.
148.1    Subd. 9. Notice of order for sanitary district annexation. The chief administrative
148.2law judge shall publish in the State Register a notice of the final order for sanitary district
148.3annexation, referring to the date of the order and describing the territory of the annexation
148.4area, and shall mail or e-mail information of the publication to each property owner in the
148.5affected territory at the owner's address as given by the county auditor. The information
148.6must state the date that the notice will appear in the State Register and give the Web site
148.7location for the State Register. The notice must:
148.8(1) describe the petition for annexation to the district;
148.9(2) describe the territory affected by the petition; and
148.10(3) state that a certified copy of the order shall be delivered to the secretary of state
148.11for filing ten days after public notice of the order in the State Register.
148.12    Subd. 10. Filing. Ten days after public notice of the order in the State Register, the
148.13chief administrative law judge shall deliver a certified copy of the order to the secretary
148.14of state for filing. Thereupon, the sanitary district annexation is deemed complete, and it
148.15shall be conclusively presumed that all requirements of law relating thereto have been
148.16complied with. The chief administrative law judge shall also transmit a certified copy of
148.17the order for filing to the county auditor of each county and the clerk or recorder of each
148.18municipality and organized town wherein any part of the territory of the district, including
148.19the newly annexed area, is situated and to the secretary of the district board.

148.20    Sec. 8. [442A.06] SANITARY DISTRICT DETACHMENT.
148.21    Subdivision 1. Detachment. (a) A sanitary district detachment may occur under this
148.22chapter for any area within an existing district upon a petition to the chief administrative
148.23law judge stating the grounds therefor as provided in this section.
148.24(b) The proposed detachment must not have any negative environmental impact
148.25on the proposed detachment area.
148.26(c) If the chief administrative law judge and the Minnesota Pollution Control
148.27Agency disagree on the need for a sanitary district detachment, they must determine
148.28whether not allowing the sanitary district detachment will have a detrimental effect on
148.29the environment. If it is determined that the sanitary district detachment will cause
148.30environmental harm, the sanitary district detachment is not allowed unless the detached
148.31area is immediately connected to an existing wastewater treatment system.
148.32    Subd. 2. Proceeding for detachment. (a) A proceeding for sanitary district
148.33detachment may be initiated by a petition to the chief administrative law judge containing
148.34the following:
148.35(1) a request for proposed detachment from a sanitary district;
149.1(2) a statement that the requisite conditions for inclusion in a district no longer exist
149.2in the proposed detachment area;
149.3(3) a legal description of the territory of the proposed detachment, including
149.4justification for inclusion or exclusion for all parcels;
149.5(4) addresses of every property owner within the sanitary district and proposed
149.6detachment area boundaries as provided by the county auditor, with certification from the
149.7county auditor; two sets of address labels for said owners; and a list of e-mail addresses
149.8for said owners, if available;
149.9(5) a statement of the territorial units represented by and qualifications of the
149.10respective signers; and
149.11(6) the post office address of each signer, given under the signer's signature.
149.12A petition may consist of separate writings of like effect, each signed by one or more
149.13qualified persons, and all such writings, when filed, shall be considered together as a
149.14single petition.
149.15(b) Petitioners must conduct and pay for a public meeting to inform citizens of
149.16the proposed detachment from a sanitary district. At the meeting, information must be
149.17provided, including a description of the existing district's territory and a description of the
149.18territory of the proposed detachment area, including justification for inclusion or exclusion
149.19for all parcels for the detachment area. Notice of the meeting must be published for two
149.20successive weeks in a qualified newspaper, as defined under chapter 331A, published
149.21within the territories of the existing sanitary district and proposed detachment area or, if
149.22there is no qualified newspaper published within those territories, in a qualified newspaper
149.23of general circulation in the territories, and must be posted for two weeks in each territorial
149.24unit of the existing sanitary district and proposed detachment area and on the Web site
149.25of the existing sanitary district, if one exists. Notice of the meeting must be mailed or
149.26e-mailed at least three weeks prior to the meeting to all property tax billing addresses for
149.27all parcels included in the sanitary district. The following must be submitted to the chief
149.28administrative law judge with the petition:
149.29(1) a record of the meeting, including copies of all information provided at the
149.30meeting;
149.31(2) a copy of the mailing list provided by the county auditor and used to notify
149.32property owners of the meeting;
149.33(3) a copy of the e-mail list used to notify property owners of the meeting;
149.34(4) the printer's affidavit of publication of public meeting notice;
149.35(5) an affidavit of posting the public meeting notice with information on dates and
149.36locations of posting; and
150.1(6) minutes or other record of the public meeting documenting that the following
150.2topics were discussed: printer's affidavit of publication of each resolution, with copy
150.3of resolution from newspaper attached; and affidavit of resolution posting on town or
150.4existing sanitary district Web site.
150.5(c) Every petition must be signed as follows:
150.6(1) by an authorized officer of the existing sanitary district pursuant to a resolution
150.7of the board;
150.8(2) for each municipality wherein there is a territorial unit of the proposed detachment
150.9area, by an authorized officer pursuant to a resolution of the municipal governing body;
150.10(3) for each organized town wherein there is a territorial unit of the proposed
150.11detachment area, by an authorized officer pursuant to a resolution of the town board; and
150.12(4) for each county wherein there is a territorial unit of the proposed detachment area
150.13consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
150.14county board or by at least 20 percent of the voters residing and owning land within the unit.
150.15(d) Each resolution must be published in the official newspaper of the governing
150.16body adopting it and becomes effective 40 days after publication, unless within said period
150.17there shall be filed with the governing body a petition signed by qualified electors of a
150.18territorial unit of the proposed detachment area, equal in number to five percent of the
150.19number of electors voting at the last preceding election of the governing body, requesting
150.20a referendum on the resolution, in which case the resolution may not become effective
150.21until approved by a majority of the qualified electors voting at a regular election or special
150.22election that the governing body may call. The notice of an election and the ballot to be
150.23used must contain the text of the resolution followed by the question: "Shall the above
150.24resolution be approved?"
150.25(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
150.26the signer's landowner status as shown by the county auditor's tax assessment records,
150.27certified by the auditor, shall be attached to or endorsed upon the petition.
150.28(f) At any time before publication of the public notice required in subdivision 4,
150.29additional signatures may be added to the petition or amendments of the petition may be
150.30made to correct or remedy any error or defect in signature or otherwise except a material
150.31error or defect in the description of the territory of the proposed detachment area. If the
150.32qualifications of any signer of a petition are challenged, the chief administrative law judge
150.33shall determine the challenge forthwith on the allegations of the petition, the county
150.34auditor's certificate of land ownership, and such other evidence as may be received.
151.1    Subd. 3. Joint petition. Different areas may be detached from a district in a single
151.2proceeding upon a joint petition therefor and upon compliance with the provisions of
151.3subdivisions 1 and 2 with respect to the area affected so far as applicable.
151.4    Subd. 4. Notice of intent for sanitary district detachment. (a) Upon receipt
151.5of a petition and record of public meeting required under subdivision 2, the chief
151.6administrative law judge shall publish a notice of intent for sanitary district detachment
151.7in the State Register and mail or e-mail information of the publication to each property
151.8owner in the affected territory at the owner's address as given by the county auditor. The
151.9information must state the date that the notice will appear in the State Register and give
151.10the Web site location for the State Register. The notice must:
151.11(1) describe the petition for sanitary district detachment;
151.12(2) describe the territory affected by the petition;
151.13(3) allow 30 days for submission of written comments on the petition;
151.14(4) state that a person who objects to the petition may submit a written request for
151.15hearing to the chief administrative law judge within 30 days of the publication of the
151.16notice in the State Register; and
151.17(5) state that if a timely request for hearing is not received, the chief administrative
151.18law judge may make a decision on the petition.
151.19(b) If 50 or more individual timely requests for hearing are received, the chief
151.20administrative law judge must hold a hearing on the petition according to the contested case
151.21provisions of chapter 14. The sanitary district or detachment area proposers are responsible
151.22for paying all costs involved in publicizing and holding a hearing on the petition.
151.23    Subd. 5. Hearing time, place. If a hearing is required under subdivision 4, the
151.24chief administrative law judge shall designate a time and place for a hearing according
151.25to section 442A.13.
151.26    Subd. 6. Relevant factors. (a) In arriving at a decision, the chief administrative law
151.27judge shall consider the following factors:
151.28(1) public health, safety, and welfare impacts for the proposed detachment area;
151.29(2) alternatives for managing the public health impacts for the proposed detachment
151.30area;
151.31(3) equities of the petition proposal;
151.32(4) contours of the petition proposal; and
151.33(5) public notification of and interaction on the petition proposal.
151.34(b) Based upon these factors, the chief administrative law judge may order the
151.35detachment from the sanitary district on finding that:
152.1(1) the proposed detachment area has adequate alternatives for managing public
152.2health impacts due to the detachment;
152.3(2) the proposed detachment area is not necessary for the district to provide a
152.4long-term, equitable solution to pollution problems affecting public health, safety, and
152.5welfare;
152.6(3) property owners within the existing sanitary district and proposed detachment
152.7area were provided notice of the proposed detachment and opportunity to comment on
152.8the petition proposal; and
152.9(4) the petition complied with the requirements of all applicable statutes and rules
152.10pertaining to sanitary district detachment.
152.11(c) The chief administrative law judge may alter the boundaries of the proposed
152.12detachment area by increasing or decreasing the area to be included or may exclude
152.13property that may be better served by another unit of government. The chief administrative
152.14law judge may also alter the boundaries of the proposed detachment area so as to follow
152.15visible, clearly recognizable physical features for municipal boundaries.
152.16(d) The chief administrative law judge may deny sanitary district detachment if the
152.17area, or a part thereof, would be better served by an alternative method.
152.18(e) In all cases, the chief administrative law judge shall set forth the factors that are
152.19the basis for the decision.
152.20    Subd. 7. Findings; order. (a) After the public notice period or the public hearing, if
152.21required under subdivision 4, and based on the petition, any public comments received,
152.22and, if a hearing was held, the hearing record, the chief administrative law judge shall
152.23make findings of fact and conclusions determining whether the conditions requisite for
152.24the sanitary district detachment exist in the territory described in the petition. If the chief
152.25administrative law judge finds that conditions exist, the judge may make an order for
152.26sanitary district detachment for the territory described in the petition.
152.27(b) All taxable property within the detached area shall remain subject to taxation
152.28for any existing bonded indebtedness of the district to such extent as it would have been
152.29subject thereto if not detached and shall also remain subject to taxation for any other
152.30existing indebtedness of the district incurred for any purpose beneficial to such area to
152.31such extent as the chief administrative law judge may determine to be just and equitable,
152.32to be specified in the order for detachment. The proper officers shall levy further taxes on
152.33such property accordingly.
152.34    Subd. 8. Denial of petition. If the chief administrative law judge, after conclusion
152.35of the public notice period or holding a hearing, if required, determines that the sanitary
152.36district detachment in the territory described in the petition is not warranted, the judge
153.1shall make an order denying the petition. The chief administrative law judge shall give
153.2notice of the denial by mail or e-mail to each signer of the petition. No petition for a
153.3detachment from a district consisting of the same territory shall be entertained within a
153.4year after the date of an order under this subdivision. Nothing in this subdivision precludes
153.5action on a petition for a detachment from a district embracing part of the territory with
153.6or without other territory.
153.7    Subd. 9. Notice of order for sanitary district detachment. The chief
153.8administrative law judge shall publish in the State Register a notice of the final order
153.9for sanitary district detachment, referring to the date of the order and describing the
153.10territory of the detached area and shall mail or e-mail information of the publication
153.11to each property owner in the affected territory at the owner's address as given by the
153.12county auditor. The information must state the date that the notice will appear in the State
153.13Register and give the Web site location for the State Register. The notice must:
153.14(1) describe the petition for detachment from the district;
153.15(2) describe the territory affected by the petition; and
153.16(3) state that a certified copy of the order shall be delivered to the secretary of state
153.17for filing ten days after public notice of the order in the State Register.
153.18    Subd. 10. Filing. Ten days after public notice of the order in the State Register, the
153.19chief administrative law judge shall deliver a certified copy of the order to the secretary of
153.20state for filing. Thereupon, the sanitary district detachment is deemed complete, and it
153.21shall be conclusively presumed that all requirements of law relating thereto have been
153.22complied with. The chief administrative law judge shall also transmit a certified copy of
153.23the order for filing to the county auditor of each county and the clerk or recorder of each
153.24municipality and organized town wherein any part of the territory of the district, including
153.25the newly detached area, is situated and to the secretary of the district board.

153.26    Sec. 9. [442A.07] SANITARY DISTRICT DISSOLUTION.
153.27    Subdivision 1. Dissolution. (a) An existing sanitary district may be dissolved under
153.28this chapter upon a petition to the chief administrative law judge stating the grounds
153.29therefor as provided in this section.
153.30(b) The proposed dissolution must not have any negative environmental impact on
153.31the existing sanitary district area.
153.32(c) If the chief administrative law judge and the Minnesota Pollution Control
153.33Agency disagree on the need to dissolve a sanitary district, they must determine whether
153.34not dissolving the sanitary district will have a detrimental effect on the environment. If
153.35it is determined that the sanitary district dissolution will cause environmental harm, the
154.1sanitary district dissolution is not allowed unless the existing sanitary district area is
154.2immediately connected to an existing wastewater treatment system.
154.3    Subd. 2. Proceeding for dissolution. (a) A proceeding for sanitary district
154.4dissolution may be initiated by a petition to the chief administrative law judge containing
154.5the following:
154.6(1) a request for proposed sanitary district dissolution;
154.7(2) a statement that the requisite conditions for a sanitary district no longer exist
154.8in the district area;
154.9(3) a proposal for distribution of the remaining funds of the district, if any, among
154.10the related governmental subdivisions;
154.11(4) a legal description of the territory of the proposed dissolution;
154.12(5) addresses of every property owner within the sanitary district boundaries as
154.13provided by the county auditor, with certification from the county auditor; two sets of
154.14address labels for said owners; and a list of e-mail addresses for said owners, if available;
154.15(6) a statement of the territorial units represented by and the qualifications of the
154.16respective signers; and
154.17(7) the post office address of each signer, given under the signer's signature.
154.18A petition may consist of separate writings of like effect, each signed by one or more
154.19qualified persons, and all such writings, when filed, shall be considered together as a
154.20single petition.
154.21(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
154.22proposed dissolution of a sanitary district. At the meeting, information must be provided,
154.23including a description of the existing district's territory. Notice of the meeting must be
154.24published for two successive weeks in a qualified newspaper, as defined under chapter
154.25331A, published within the territory of the sanitary district or, if there is no qualified
154.26newspaper published within that territory, in a qualified newspaper of general circulation
154.27in the territory and must be posted for two weeks in each territorial unit of the sanitary
154.28district and on the Web site of the existing sanitary district, if one exists. Notice of the
154.29meeting must be mailed or e-mailed at least three weeks prior to the meeting to all property
154.30tax billing addresses for all parcels included in the sanitary district. The following must be
154.31submitted to the chief administrative law judge with the petition:
154.32(1) a record of the meeting, including copies of all information provided at the
154.33meeting;
154.34(2) a copy of the mailing list provided by the county auditor and used to notify
154.35property owners of the meeting;
154.36(3) a copy of the e-mail list used to notify property owners of the meeting;
155.1(4) the printer's affidavit of publication of public meeting notice;
155.2(5) an affidavit of posting the public meeting notice with information on dates and
155.3locations of posting; and
155.4(6) minutes or other record of the public meeting documenting that the following
155.5topics were discussed: printer's affidavit of publication of each resolution, with copy
155.6of resolution from newspaper attached; and affidavit of resolution posting on town or
155.7existing sanitary district Web site.
155.8(c) Every petition must be signed as follows:
155.9(1) by an authorized officer of the existing sanitary district pursuant to a resolution
155.10of the board;
155.11(2) for each municipality wherein there is a territorial unit of the existing sanitary
155.12district, by an authorized officer pursuant to a resolution of the municipal governing body;
155.13(3) for each organized town wherein there is a territorial unit of the existing sanitary
155.14district, by an authorized officer pursuant to a resolution of the town board; and
155.15(4) for each county wherein there is a territorial unit of the existing sanitary district
155.16consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
155.17county board or by at least 20 percent of the voters residing and owning land within the unit.
155.18(d) Each resolution must be published in the official newspaper of the governing body
155.19adopting it and becomes effective 40 days after publication, unless within said period there
155.20shall be filed with the governing body a petition signed by qualified electors of a territorial
155.21unit of the district, equal in number to five percent of the number of electors voting at the
155.22last preceding election of the governing body, requesting a referendum on the resolution,
155.23in which case the resolution may not become effective until approved by a majority of the
155.24qualified electors voting at a regular election or special election that the governing body
155.25may call. The notice of an election and the ballot to be used must contain the text of the
155.26resolution followed by the question: "Shall the above resolution be approved?"
155.27(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
155.28the signer's landowner status as shown by the county auditor's tax assessment records,
155.29certified by the auditor, shall be attached to or endorsed upon the petition.
155.30(f) At any time before publication of the public notice required in subdivision 3,
155.31additional signatures may be added to the petition or amendments of the petition may be
155.32made to correct or remedy any error or defect in signature or otherwise except a material
155.33error or defect in the description of the territory of the proposed dissolution area. If the
155.34qualifications of any signer of a petition are challenged, the chief administrative law judge
155.35shall determine the challenge forthwith on the allegations of the petition, the county
155.36auditor's certificate of land ownership, and such other evidence as may be received.
156.1    Subd. 3. Notice of intent for sanitary district dissolution. (a) Upon receipt
156.2of a petition and record of the public meeting required under subdivision 2, the chief
156.3administrative law judge shall publish a notice of intent of sanitary district dissolution
156.4in the State Register and mail or e-mail information of the publication to each property
156.5owner in the affected territory at the owner's address as given by the county auditor. The
156.6information must state the date that the notice will appear in the State Register and give
156.7the Web site location for the State Register. The notice must:
156.8(1) describe the petition for sanitary district dissolution;
156.9(2) describe the territory affected by the petition;
156.10(3) allow 30 days for submission of written comments on the petition;
156.11(4) state that a person who objects to the petition may submit a written request for
156.12hearing to the chief administrative law judge within 30 days of the publication of the
156.13notice in the State Register; and
156.14(5) state that if a timely request for hearing is not received, the chief administrative
156.15law judge may make a decision on the petition.
156.16(b) If 50 or more individual timely requests for hearing are received, the chief
156.17administrative law judge must hold a hearing on the petition according to the contested
156.18case provisions of chapter 14. The sanitary district dissolution proposers are responsible
156.19for paying all costs involved in publicizing and holding a hearing on the petition.
156.20    Subd. 4. Hearing time, place. If a hearing is required under subdivision 3, the
156.21chief administrative law judge shall designate a time and place for a hearing according
156.22to section 442A.13.
156.23    Subd. 5. Relevant factors. (a) In arriving at a decision, the chief administrative law
156.24judge shall consider the following factors:
156.25(1) public health, safety, and welfare impacts for the proposed dissolution;
156.26(2) alternatives for managing the public health impacts for the proposed dissolution;
156.27(3) equities of the petition proposal;
156.28(4) contours of the petition proposal; and
156.29(5) public notification of and interaction on the petition proposal.
156.30(b) Based upon these factors, the chief administrative law judge may order the
156.31dissolution of the sanitary district on finding that:
156.32(1) the proposed dissolution area has adequate alternatives for managing public
156.33health impacts due to the dissolution;
156.34(2) the sanitary district is not necessary to provide a long-term, equitable solution to
156.35pollution problems affecting public health, safety, and welfare;
157.1(3) property owners within the sanitary district were provided notice of the proposed
157.2dissolution and opportunity to comment on the petition proposal; and
157.3(4) the petition complied with the requirements of all applicable statutes and rules
157.4pertaining to sanitary district dissolution.
157.5(c) The chief administrative law judge may alter the boundaries of the proposed
157.6dissolution area by increasing or decreasing the area to be included or may exclude
157.7property that may be better served by another unit of government. The chief administrative
157.8law judge may also alter the boundaries of the proposed dissolution area so as to follow
157.9visible, clearly recognizable physical features for municipal boundaries.
157.10(d) The chief administrative law judge may deny sanitary district dissolution if the
157.11area, or a part thereof, would be better served by an alternative method.
157.12(e) In all cases, the chief administrative law judge shall set forth the factors that are
157.13the basis for the decision.
157.14    Subd. 6. Findings; order. (a) After the public notice period or the public hearing, if
157.15required under subdivision 3, and based on the petition, any public comments received,
157.16and, if a hearing was held, the hearing record, the chief administrative law judge shall
157.17make findings of fact and conclusions determining whether the conditions requisite for
157.18the sanitary district dissolution exist in the territory described in the petition. If the chief
157.19administrative law judge finds that conditions exist, the judge may make an order for
157.20sanitary district dissolution for the territory described in the petition.
157.21(b) If the chief administrative law judge determines that the conditions requisite for
157.22the creation of the district no longer exist therein, that all indebtedness of the district has
157.23been paid, and that all property of the district except funds has been disposed of, the judge
157.24may make an order dissolving the district and directing the distribution of its remaining
157.25funds, if any, among the related governmental subdivisions on such basis as the chief
157.26administrative law judge determines to be just and equitable, to be specified in the order.
157.27    Subd. 7. Denial of petition. If the chief administrative law judge, after conclusion
157.28of the public notice period or holding a hearing, if required, determines that the sanitary
157.29district dissolution in the territory described in the petition is not warranted, the judge
157.30shall make an order denying the petition. The chief administrative law judge shall give
157.31notice of the denial by mail or e-mail to each signer of the petition. No petition for the
157.32dissolution of a district consisting of the same territory shall be entertained within a year
157.33after the date of an order under this subdivision.
157.34    Subd. 8. Notice of order for sanitary district dissolution. The chief administrative
157.35law judge shall publish in the State Register a notice of the final order for sanitary
157.36district dissolution, referring to the date of the order and describing the territory of the
158.1dissolved district and shall mail or e-mail information of the publication to each property
158.2owner in the affected territory at the owner's address as given by the county auditor. The
158.3information must state the date that the notice will appear in the State Register and give
158.4the Web site location of the State Register. The notice must:
158.5(1) describe the petition for dissolution of the district;
158.6(2) describe the territory affected by the petition; and
158.7(3) state that a certified copy of the order shall be delivered to the secretary of state
158.8for filing ten days after public notice of the order in the State Register.
158.9    Subd. 9. Filing. (a) Ten days after public notice of the order in the State Register,
158.10the chief administrative law judge shall deliver a certified copy of the order to the secretary
158.11of state for filing. Thereupon, the sanitary district dissolution is deemed complete, and it
158.12shall be conclusively presumed that all requirements of law relating thereto have been
158.13complied with. The chief administrative law judge shall also transmit a certified copy of
158.14the order for filing to the county auditor of each county and the clerk or recorder of each
158.15municipality and organized town wherein any part of the territory of the dissolved district
158.16is situated and to the secretary of the district board.
158.17(b) The chief administrative law judge shall also transmit a certified copy of the order
158.18to the treasurer of the district, who must thereupon distribute the remaining funds of the
158.19district as directed by the order and who is responsible for the funds until so distributed.

158.20    Sec. 10. [442A.08] JOINT PUBLIC INFORMATIONAL MEETING.
158.21There must be a joint public informational meeting of the local governments of any
158.22proposed sanitary district creation, annexation, detachment, or dissolution. The joint public
158.23informational meeting must be held after the final mediation meeting or the final meeting
158.24held according to section 442A.02, subdivision 8, if any, and before the hearing on the
158.25matter is held. If no mediation meetings are held, the joint public informational meeting
158.26must be held after the initiating documents have been filed and before the hearing on the
158.27matter. The time, date, and place of the public informational meeting must be determined
158.28jointly by the local governments in the proposed creation, annexation, detachment, or
158.29dissolution areas and by the sanitary district, if one exists. The chair of the sanitary district,
158.30if one exists, and the responsible official for one of the local governments represented at
158.31the meeting must serve as the co-chairs for the informational meeting. Notice of the time,
158.32date, place, and purpose of the informational meeting must be posted by the sanitary
158.33district, if one exists, and local governments in designated places for posting notices. The
158.34sanitary district, if one exists, and represented local governments must also publish, at their
158.35own expense, notice in their respective official newspapers. If the same official newspaper
159.1is used by multiple local government representatives or the sanitary district, a joint notice
159.2may be published and the costs evenly divided. All notice required by this section must
159.3be provided at least ten days before the date for the public informational meeting. At the
159.4public informational meeting, all persons appearing must have an opportunity to be heard,
159.5but the co-chairs may, by mutual agreement, establish the amount of time allowed for each
159.6speaker. The sanitary district board, the local government representatives, and any resident
159.7or affected property owner may be represented by counsel and may place into the record of
159.8the informational meeting documents, expert opinions, or other materials supporting their
159.9positions on issues raised by the proposed proceeding. The secretary of the sanitary district,
159.10if one exists, or a person appointed by the chair must record minutes of the proceedings of
159.11the informational meeting and must make an audio recording of the informational meeting.
159.12The sanitary district, if one exists, or a person appointed by the chair must provide the
159.13chief administrative law judge and the represented local governments with a copy of the
159.14printed minutes and must provide the chief administrative law judge and the represented
159.15local governments with a copy of the audio recording. The record of the informational
159.16meeting for a proceeding under section 442A.04, 442A.05, 442A.06, or 442A.07 is
159.17admissible in any proceeding under this chapter and shall be taken into consideration by
159.18the chief administrative law judge or the chief administrative law judge's designee.

159.19    Sec. 11. [442A.09] ANNEXATION BY ORDER OF POLLUTION CONTROL
159.20AGENCY.
159.21    Subdivision 1. Annexation by ordinance alternative. If a determination or order
159.22by the Minnesota Pollution Control Agency under section 115.49 or other similar statute is
159.23made that cooperation by contract is necessary and feasible between a sanitary district and
159.24an unincorporated area located outside the existing corporate limits of the sanitary district,
159.25the sanitary district required to provide or extend through a contract a governmental
159.26service to an unincorporated area, during the statutory 90-day period provided in section
159.27115.49 to formulate a contract, may in the alternative to formulating a service contract to
159.28provide or extend the service, declare the unincorporated area described in the Minnesota
159.29Pollution Control Agency's determination letter or order annexed to the sanitary district by
159.30adopting an ordinance and submitting it to the chief administrative law judge.
159.31    Subd. 2. Chief administrative law judge's role. The chief administrative law
159.32judge may review and comment on the ordinance but shall approve the ordinance within
159.3330 days of receipt. The ordinance is final and the annexation is effective on the date the
159.34chief administrative law judge approves the ordinance.

160.1    Sec. 12. [442A.10] PETITIONERS TO PAY EXPENSES.
160.2Expenses of the preparation and submission of petitions in the proceedings under
160.3sections 442A.04 to 442A.09 shall be paid by the petitioners. Notwithstanding section
160.416A.1283, the Office of Administrative Hearings may adopt rules according to section
160.514.386 to establish fees necessary to support the preparation and submission of petitions
160.6in proceedings under sections 442A.04 to 442A.09. The fees collected by the Office of
160.7Administrative Hearings shall be deposited in the environmental fund.
160.8EFFECTIVE DATE.This section is effective the day following final enactment.

160.9    Sec. 13. [442A.11] TIME LIMITS FOR ORDERS; APPEALS.
160.10    Subdivision 1. Orders; time limit. All orders in proceedings under this chapter
160.11shall be issued within one year from the date of the first hearing thereon, provided that
160.12the time may be extended for a fixed additional period upon consent of all parties of
160.13record. Failure to so order shall be deemed to be an order denying the matter. An appeal
160.14may be taken from such failure to so order in the same manner as an appeal from an
160.15order as provided in subdivision 2.
160.16    Subd. 2. Grounds for appeal. (a) Any person aggrieved by an order issued under
160.17this chapter may appeal to the district court upon the following grounds:
160.18(1) the order was issued without jurisdiction to act;
160.19(2) the order exceeded the jurisdiction of the presiding administrative law judge;
160.20(3) the order was arbitrary, fraudulent, capricious, or oppressive or in unreasonable
160.21disregard of the best interests of the territory affected; or
160.22(4) the order was based upon an erroneous theory of law.
160.23(b) The appeal must be taken in the district court in the county in which the majority
160.24of the area affected is located. The appeal does not stay the effect of the order. All notices
160.25and other documents must be served on both the chief administrative law judge and the
160.26attorney general's assistant assigned to the chief administrative law judge for purposes
160.27of this chapter.
160.28(c) If the court determines that the action involved is unlawful or unreasonable or is
160.29not warranted by the evidence in case an issue of fact is involved, the court may vacate or
160.30suspend the action involved, in whole or in part, as the case requires. The matter shall then
160.31be remanded for further action in conformity with the decision of the court.
160.32(d) To render a review of an order effectual, the aggrieved person shall file with the
160.33court administrator of the district court of the county in which the majority of the area is
160.34located, within 30 days of the order, an application for review together with the grounds
160.35upon which the review is sought.
161.1(e) An appeal lies from the district court as in other civil cases.

161.2    Sec. 14. [442A.12] CHIEF ADMINISTRATIVE LAW JUDGE MAY APPEAL
161.3FROM DISTRICT COURT.
161.4An appeal may be taken under the Rules of Civil Appellate Procedure by the chief
161.5administrative law judge from a final order or judgment made or rendered by the district
161.6court when the chief administrative law judge determines that the final order or judgment
161.7adversely affects the public interest.

161.8    Sec. 15. [442A.13] UNIFORM PROCEDURES.
161.9    Subdivision 1. Hearings. (a) Proceedings initiated by the submission of an initiating
161.10document or by the chief administrative law judge shall come on for hearing within 30 to
161.1160 days from receipt of the document by the chief administrative law judge or from the
161.12date of the chief administrative law judge's action and the person conducting the hearing
161.13must submit an order no later than one year from the date of the first hearing.
161.14(b) The place of the hearing shall be in the county where a majority of the affected
161.15territory is situated, and shall be established for the convenience of the parties.
161.16(c) The chief administrative law judge shall mail notice of the hearing to the
161.17following parties: the sanitary district; any township or municipality presently governing
161.18the affected territory; any township or municipality abutting the affected territory;
161.19the county where the affected territory is situated; and each planning agency that has
161.20jurisdiction over the affected area.
161.21(d) The chief administrative law judge shall see that notice of the hearing is published
161.22for two successive weeks in a legal newspaper of general circulation in the affected area.
161.23(e) When the chief administrative law judge exercises authority to change the
161.24boundaries of the affected area so as to increase the quantity of land, the hearing shall
161.25be recessed and reconvened upon two weeks' published notice in a legal newspaper of
161.26general circulation in the affected area.
161.27    Subd. 2. Transmittal of order. The chief administrative law judge shall see that
161.28copies of the order are mailed to all parties entitled to mailed notice of hearing under
161.29subdivision 1, individual property owners if initiated in that manner, and any other party
161.30of record.

161.31    Sec. 16. [442A.14] DISTRICT BOARD OF MANAGERS.
161.32    Subdivision 1. Composition. The governing body of each district shall be a board
161.33of managers of five members, who shall be voters residing in the district and who may
162.1but need not be officers, members of governing bodies, or employees of the related
162.2governmental subdivisions, except that when there are more than five territorial units in
162.3a district, there must be one board member for each unit.
162.4    Subd. 2. Terms. The terms of the first board members elected after creation of a
162.5district shall be so arranged and determined by the electing body as to expire on the first
162.6business day in January as follows:
162.7(1) the terms of two members in the second calendar year after the year in which
162.8they were elected;
162.9(2) the terms of two other members in the third calendar year after the year in which
162.10they were elected; and
162.11(3) the term of the remaining member in the fourth calendar year after the year in
162.12which the member was elected. In case a board has more than five members, the additional
162.13members shall be assigned to the groups under clauses (1) to (3) to equalize the groups as
162.14far as practicable. Thereafter, board members shall be elected successively for regular
162.15terms beginning upon expiration of the preceding terms and expiring on the first business
162.16day in January of the third calendar year thereafter. Each board member serves until
162.17a successor is elected and has qualified.
162.18    Subd. 3. Election of board. In a district having only one territorial unit, all the
162.19members of the board shall be elected by the related governing body. In a district having
162.20more than one territorial unit, the members of the board shall be elected by the members
162.21of the related governing bodies in joint session except as otherwise provided. The electing
162.22bodies concerned shall meet and elect the first board members of a new district as soon
162.23as practicable after creation of the district and shall meet and elect board members for
162.24succeeding regular terms as soon as practicable after November 1 next preceding the
162.25beginning of the terms to be filled, respectively.
162.26    Subd. 4. Central related governing body. Upon the creation of a district
162.27having more than one territorial unit, the chief administrative law judge, on the basis of
162.28convenience for joint meeting purposes, shall designate one of the related governing
162.29bodies as the central related governing body in the order creating the district or in a
162.30subsequent special order, of which the chief administrative law judge shall notify the
162.31clerks or recorders of all the related governing bodies. Upon receipt of the notification,
162.32the clerk or recorder of the central related governing body shall immediately transmit the
162.33notification to the presiding officer of the body. The officer shall thereupon call a joint
162.34meeting of the members of all the related governing bodies to elect board members, to
162.35be held at such time as the officer shall fix at the regular meeting place of the officer's
162.36governing body or at such other place in the district as the officer shall determine. The
163.1clerk or recorder of the body must give at least ten days' notice of the meeting by mail to
163.2the clerks or recorders of all the other related governing bodies, who shall immediately
163.3transmit the notice to all the members of the related governing bodies, respectively.
163.4Subsequent joint meetings to elect board members for regular terms must be called and
163.5held in like manner. The presiding officer and the clerk or recorder of the central related
163.6governing body shall act respectively as chair and secretary of the joint electing body at
163.7any meeting thereof, but in case of the absence or disability of either of them, the body
163.8may elect a temporary substitute. A majority of the members of each related governing
163.9body is required for a quorum at any meeting of the joint electing body.
163.10    Subd. 5. Nominations. Nominations for board members may be made by petitions,
163.11each signed by ten or more voters residing and owning land in the district, filed with the
163.12clerk, recorder, or secretary of the electing body before the election meeting. No person
163.13shall sign more than one petition. The electing body shall give due consideration to all
163.14nominations but is not limited thereto.
163.15    Subd. 6. Election; single governing body. In the case of an electing body
163.16consisting of a single related governing body, a majority vote of all members is required
163.17for an election. In the case of a joint electing body, a majority vote of members present is
163.18required for an election. In case of lack of a quorum or failure to elect, a meeting of an
163.19electing body may be adjourned to a stated time and place without further notice.
163.20    Subd. 7. Election; multiple governing bodies. In any district having more than
163.21one territorial unit, the related governing bodies, instead of meeting in joint session, may
163.22elect a board member by resolutions adopted by all of them separately, concurring in the
163.23election of the same person. A majority vote of all members of each related governing
163.24body is required for the adoption of any such resolution. The clerks or recorders of the
163.25other related governing bodies shall transmit certified copies of the resolutions to the clerk
163.26or recorder of the central related governing body. Upon receipt of concurring resolutions
163.27from all the related governing bodies, the presiding officer and clerk or recorder of the
163.28central related governing body shall certify the results and furnish certificates of election
163.29as provided for a joint meeting.
163.30    Subd. 8. Vacancies. Any vacancy in the membership of a board must be filled for
163.31the unexpired term in like manner as provided for the regular election of board members.
163.32    Subd. 9. Certification of election; temporary chair. The presiding and recording
163.33officers of the electing body shall certify the results of each election to the county auditor
163.34of each county wherein any part of the district is situated and to the clerk or recorder of
163.35each related governing body and shall make and transmit to each board member elected
163.36a certificate of the board member's election. Upon electing the first board members of a
164.1district, the presiding officer of the electing body shall designate a member to serve as
164.2temporary chair for purposes of initial organization of the board, and the recording
164.3officer of the body shall include written notice thereof to all the board members with
164.4their certificates of election.

164.5    Sec. 17. [442A.15] BOARD ORGANIZATION AND PROCEDURES.
164.6    Subdivision 1. Initial, annual meetings. As soon as practicable after the election
164.7of the first board members of a district, the board shall meet at the call of the temporary
164.8chair to elect officers and take other appropriate action for organization and administration
164.9of the district. Each board shall hold a regular annual meeting at the call of the chair or
164.10otherwise as the board prescribes on or as soon as practicable after the first business day in
164.11January of each year and such other regular and special meetings as the board prescribes.
164.12    Subd. 2. Officers. The officers of each district shall be a chair and a vice-chair,
164.13who shall be members of the board, and a secretary and a treasurer, who may but need
164.14not be members of the board. The board of a new district at its initial meeting or as soon
164.15thereafter as practicable shall elect the officers to serve until the first business day in
164.16January next following. Thereafter, the board shall elect the officers at each regular annual
164.17meeting for terms expiring on the first business day in January next following. Each
164.18officer serves until a successor is elected and has qualified.
164.19    Subd. 3. Meeting place; offices. The board at its initial meeting or as soon
164.20thereafter as practicable shall provide for suitable places for board meetings and for offices
164.21of the district officers and may change the same thereafter as the board deems advisable.
164.22The meeting place and offices may be the same as those of any related governing body,
164.23with the approval of the body. The secretary of the board shall notify the secretary of state,
164.24the county auditor of each county wherein any part of the district is situated, and the clerk
164.25or recorder of each related governing body of the locations and post office addresses of the
164.26meeting place and offices and any changes therein.
164.27    Subd. 4. Budget. At any time before the proceeds of the first tax levy in a district
164.28become available, the district board may prepare a budget comprising an estimate of the
164.29expenses of organizing and administering the district until the proceeds are available, with
164.30a proposal for apportionment of the estimated amount among the related governmental
164.31subdivisions, and may request the governing bodies thereof to advance funds according to
164.32the proposal. The governing bodies may authorize advancement of the requested amounts,
164.33or such part thereof as they respectively deem proper, from any funds available in their
164.34respective treasuries. The board shall include in its first tax levy after receipt of any such
165.1advancements a sufficient sum to cover the same and shall cause the same to be repaid,
165.2without interest, from the proceeds of taxes as soon as received.

165.3    Sec. 18. [442A.16] DISTRICT STATUS AND POWERS.
165.4    Subdivision 1. Status. Every district shall be a public corporation and a governmental
165.5subdivision of the state and shall be deemed to be a municipality or municipal corporation
165.6for the purpose of obtaining federal or state grants or loans or otherwise complying with
165.7any provision of federal or state law or for any other purpose relating to the powers and
165.8purposes of the district for which such status is now or hereafter required by law.
165.9    Subd. 2. Powers and purpose. Every district shall have the powers and purposes
165.10prescribed by this chapter and such others as may now or hereafter be prescribed by law.
165.11No express grant of power or enumeration of powers herein shall be deemed to limit the
165.12generality or scope of any grant of power.
165.13    Subd. 3. Scope of powers and duties. Except as otherwise provided, a power or
165.14duty vested in or imposed upon a district or any of its officers, agents, or employees shall
165.15not be deemed exclusive and shall not supersede or abridge any power or duty vested in or
165.16imposed upon any other agency of the state or any governmental subdivision thereof, but
165.17shall be supplementary thereto.
165.18    Subd. 4. Exercise of power. All the powers of a district shall be exercised by its
165.19board of managers except so far as approval of any action by popular vote or by any other
165.20authority may be expressly required by law.
165.21    Subd. 5. Lawsuits; contracts. A district may sue and be sued and may enter into
165.22any contract necessary or proper for the exercise of its powers or the accomplishment
165.23of its purposes.
165.24    Subd. 6. Property acquisition. A district may acquire by purchase, gift, or
165.25condemnation or may lease or rent any real or personal property within or without the
165.26district that may be necessary for the exercise of district powers or the accomplishment of
165.27district purposes, may hold the property for such purposes, and may lease, rent out, sell, or
165.28otherwise dispose of any property not needed for such purposes.
165.29    Subd. 7. Acceptance of money or property. A district may accept gifts, grants,
165.30or loans of money or other property from the United States, the state, or any person,
165.31corporation, or other entity for district purposes; may enter into any agreement required in
165.32connection therewith; and may hold, use, and dispose of the money or property according
165.33to the terms of the gift, grant, loan, or agreement relating thereto.

165.34    Sec. 19. [442A.17] SPECIFIC PURPOSES AND POWERS.
166.1    Subdivision 1. Pollution prevention. A district may construct, install, improve,
166.2maintain, and operate any system, works, or facilities within or without the district
166.3required to control and prevent pollution of any waters of the state within its territory.
166.4    Subd. 2. Sewage disposal. A district may construct, install, improve, maintain,
166.5and operate any system, works, or facilities within or without the district required to
166.6provide for, regulate, and control the disposal of sewage, industrial waste, and other waste
166.7originating within its territory. The district may require any person upon whose premises
166.8there is any source of sewage, industrial waste, or other waste within the district to
166.9connect the premises with the disposal system, works, or facilities of the district whenever
166.10reasonable opportunity therefor is provided.
166.11    Subd. 3. Garbage, refuse disposal. A district may construct, install, improve,
166.12maintain, and operate any system, works, or facilities within or without the district required
166.13to provide for, regulate, and control the disposal of garbage or refuse originating within the
166.14district. The district may require any person upon whose premises any garbage or refuse is
166.15produced or accumulated to dispose of the garbage or refuse through the system, works, or
166.16facilities of the district whenever reasonable opportunity therefor is provided.
166.17    Subd. 4. Water supply. A district may procure supplies of water necessary for any
166.18purpose under subdivisions 1 to 3 and may construct, install, improve, maintain, and
166.19operate any system, works, or facilities required therefor within or without the district.
166.20    Subd. 5. Roads. (a) To maintain the integrity of and facilitate access to district
166.21systems, works, or facilities, the district may maintain and repair a road by agreement with
166.22the entity that was responsible for the performance of maintenance and repair immediately
166.23prior to the agreement. Maintenance and repair includes but is not limited to providing
166.24lighting, snow removal, and grass mowing.
166.25(b) A district shall establish a taxing subdistrict of benefited property and shall levy
166.26special taxes, pursuant to section 442A.24, subdivision 2, for the purposes of paying the
166.27cost of improvement or maintenance of a road under paragraph (a).
166.28(c) For purposes of this subdivision, a district shall not be construed as a road
166.29authority under chapter 160.
166.30(d) The district and its officers and employees are exempt from liability for any tort
166.31claim for injury to person or property arising from travel on a road maintained by the
166.32district and related to the road's maintenance or condition.

166.33    Sec. 20. [442A.18] DISTRICT PROJECTS AND FACILITIES.
166.34    Subdivision 1. Public property. For the purpose of constructing, improving,
166.35maintaining, or operating any system, works, or facilities designed or used for any purpose
167.1under section 442A.17, a district, its officers, agents, employees, and contractors may enter,
167.2occupy, excavate, and otherwise operate in, upon, under, through, or along any public
167.3highway, including a state trunk highway, or any street, park, or other public grounds so
167.4far as necessary for such work, with the approval of the governing body or other authority
167.5in charge of the public property affected and on such terms as may be agreed upon with the
167.6governing body or authority respecting interference with public use, restoration of previous
167.7conditions, compensation for damages, and other pertinent matters. If an agreement cannot
167.8be reached after reasonable opportunity therefor, the district may acquire the necessary
167.9rights, easements, or other interests in the public property by condemnation, subject to all
167.10applicable provisions of law as in case of taking private property, upon condition that the
167.11court shall determine that there is paramount public necessity for the acquisition.
167.12    Subd. 2. Use of other systems. A district may, upon such terms as may be
167.13agreed upon with the respective governing bodies or authorities concerned, provide for
167.14connecting with or using; lease; or acquire and take over any system, works, or facilities
167.15for any purpose under section 442A.17 belonging to any other governmental subdivision
167.16or other public agency.
167.17    Subd. 3. Use by other governmental bodies. A district may, upon such terms
167.18as may be agreed upon with the respective governing bodies or authorities concerned,
167.19authorize the use by any other governmental subdivision or other public agency of any
167.20system, works, or facilities of the district constructed for any purpose under section
167.21442A.17 so far as the capacity thereof is sufficient beyond the needs of the district. A
167.22district may extend any such system, works, or facilities and permit the use thereof by
167.23persons outside the district, so far as the capacity thereof is sufficient beyond the needs of
167.24the district, upon such terms as the board may prescribe.
167.25    Subd. 4. Joint projects. A district may be a party to a joint cooperative project,
167.26undertaking, or enterprise with one or more other governmental subdivisions or other
167.27public agencies for any purpose under section 442A.17 upon such terms as may be
167.28agreed upon between the governing bodies or authorities concerned. Without limiting the
167.29effect of the foregoing provision or any other provision of this chapter, a district, with
167.30respect to any of said purposes, may act under and be subject to section 471.59, or any
167.31other appropriate law providing for joint or cooperative action between governmental
167.32subdivisions or other public agencies.

167.33    Sec. 21. [442A.19] CONTROL OF SANITARY FACILITIES.
167.34A district may regulate and control the construction, maintenance, and use of privies,
167.35cesspools, septic tanks, toilets, and other facilities and devices for the reception or disposal
168.1of human or animal excreta or other domestic wastes within its territory so far as necessary
168.2to prevent nuisances or pollution or to protect the public health, safety, and welfare
168.3and may prohibit the use of any such facilities or devices not connected with a district
168.4disposal system, works, or facilities whenever reasonable opportunity for such connection
168.5is provided; provided, that the authority of a district under this section does not extend
168.6or apply to the construction, maintenance, operation, or use by any person other than the
168.7district of any disposal system or part thereof within the district under and in accordance
168.8with a valid and existing permit issued by the Minnesota Pollution Control Agency.

168.9    Sec. 22. [442A.20] DISTRICT PROGRAMS, SURVEYS, AND STUDIES.
168.10A district may develop general programs and particular projects within the scope of
168.11its powers and purposes and may make all surveys, studies, and investigations necessary
168.12for the programs and projects.

168.13    Sec. 23. [442A.21] GENERAL AND MUNICIPALITY POWERS.
168.14A district may do and perform all other acts and things necessary or proper for the
168.15effectuation of its powers and the accomplishment of its purposes. Without limiting the
168.16effect of the foregoing provision or any other provision of this chapter, a district, with
168.17respect to each and all of said powers and purposes, shall have like powers as are vested
168.18in municipalities with respect to any similar purposes. The exercise of such powers by a
168.19district and all matters pertaining thereto are governed by the law relating to the exercise
168.20of similar powers by municipalities and matters pertaining thereto, so far as applicable,
168.21with like force and effect, except as otherwise provided.

168.22    Sec. 24. [442A.22] ADVISORY COMMITTEE.
168.23A district board of managers may appoint an advisory committee with membership
168.24and duties as the board prescribes.

168.25    Sec. 25. [442A.23] BOARD POWERS.
168.26    Subdivision 1. Generally. The board of managers of every district shall have charge
168.27and control of all the funds, property, and affairs of the district. With respect thereto, the
168.28board has the same powers and duties as are provided by law for a municipality with respect
168.29to similar municipal matters, except as otherwise provided. Except as otherwise provided,
168.30the chair, vice-chair, secretary, and treasurer of the district have the same powers and duties,
168.31respectively, as the mayor, acting mayor, clerk, and treasurer of a municipality. Except as
168.32otherwise provided, the exercise of the powers and the performance of the duties of the
169.1board and officers of the district and all other activities, transactions, and procedures of the
169.2district or any of its officers, agents, or employees, respectively, are governed by the law
169.3relating to similar matters in a municipality, so far as applicable, with like force and effect.
169.4    Subd. 2. Regulation of district. The board may enact ordinances, prescribe
169.5regulations, adopt resolutions, and take other appropriate action relating to any matter
169.6within the powers and purposes of the district and may do and perform all other acts and
169.7things necessary or proper for the effectuation of said powers and the accomplishment
169.8of said purposes. The board may provide that violation of a district ordinance is a penal
169.9offense and may prescribe penalties for violations, not exceeding those prescribed by
169.10law for violation of municipal ordinances.
169.11    Subd. 3. Arrest; prosecution. (a) Violations of district ordinances may be
169.12prosecuted before any court having jurisdiction of misdemeanors. Any peace officer may
169.13make arrests for violations committed anywhere within the district in the same manner as
169.14for violations of city ordinances or for statutory misdemeanors.
169.15(b) All fines collected shall be deposited in the treasury of the district.

169.16    Sec. 26. [442A.24] TAX LEVIES, ASSESSMENTS, AND SERVICE CHARGES.
169.17    Subdivision 1. Tax levies. The board may levy taxes for any district purpose on all
169.18property taxable within the district.
169.19    Subd. 2. Particular area. In the case where a particular area within the district,
169.20but not the entire district, is benefited by a system, works, or facilities of the district,
169.21the board, after holding a public hearing as provided by law for levying assessments on
169.22benefited property, shall by ordinance establish such area as a taxing subdistrict, to be
169.23designated by number, and shall levy special taxes on all the taxable property therein, to be
169.24accounted for separately and used only for the purpose of paying the cost of construction,
169.25improvement, acquisition, maintenance, or operation of such system, works, or facilities,
169.26or paying the principal and interest on bonds issued to provide funds therefor and expenses
169.27incident thereto. The hearing may be held jointly with a hearing for the purpose of levying
169.28assessments on benefited property within the proposed taxing subdistrict.
169.29    Subd. 3. Benefited property. The board shall levy assessments on benefited property
169.30to provide funds for payment of the cost of construction, improvement, or acquisition of
169.31any system, works, or facilities designed or used for any district purpose or for payment of
169.32the principal of and interest on any bonds issued therefor and expenses incident thereto.
169.33    Subd. 4. Service charges. The board shall prescribe service, use, or rental charges
169.34for persons or premises connecting with or making use of any system, works, or facilities
169.35of the district; prescribe the method of payment and collection of the charges; and provide
170.1for the collection thereof for the district by any related governmental subdivision or
170.2other public agency on such terms as may be agreed upon with the governing body or
170.3other authority thereof.

170.4    Sec. 27. [442A.25] BORROWING POWERS; BONDS.
170.5    Subdivision 1. Borrowing power. The board may authorize the borrowing of
170.6money for any district purpose and provide for the repayment thereof, subject to chapter
170.7475. The taxes initially levied by any district according to section 475.61 for the payment
170.8of district bonds, upon property within each municipality included in the district, shall be
170.9included in computing the levy of the municipality.
170.10    Subd. 2. Bond issuance. The board may authorize the issuance of bonds or
170.11obligations of the district to provide funds for the construction, improvement, or
170.12acquisition of any system, works, or facilities for any district purpose or for refunding
170.13any prior bonds or obligations issued for any such purpose and may pledge the full faith
170.14and credit of the district; the proceeds of tax levies or assessments; service, use, or
170.15rental charges; or any combination thereof to the payment of such bonds or obligations
170.16and interest thereon or expenses incident thereto. An election or vote of the people of
170.17the district is required to authorize the issuance of any bonds or obligations. Except as
170.18otherwise provided in this chapter, the forms and procedures for issuing and selling bonds
170.19and provisions for payment thereof must comply with chapter 475.

170.20    Sec. 28. [442A.26] FUNDS; DISTRICT TREASURY.
170.21The proceeds of all tax levies, assessments, service, use, or rental charges, and
170.22other income of the district must be deposited in the district treasury and must be held
170.23and disposed of as the board may direct for district purposes, subject to any pledges or
170.24dedications made by the board for the use of particular funds for the payment of bonds,
170.25interest thereon, or expenses incident thereto or for other specific purposes.

170.26    Sec. 29. [442A.27] EFFECT OF DISTRICT ORDINANCES AND FACILITIES.
170.27In any case where an ordinance is enacted or a regulation adopted by a district
170.28board relating to the same subject matter and applicable in the same area as an existing
170.29ordinance or regulation of a related governmental subdivision for the district, the district
170.30ordinance or regulation, to the extent of its application, supersedes the ordinance or
170.31regulation of the related governmental subdivision. In any case where an area within a
170.32district is served for any district purpose by a system, works, or facilities of the district,
170.33no system, works, or facilities shall be constructed, maintained, or operated for the same
171.1purpose in the same area by any related governmental subdivision or other public agency
171.2except as approved by the district board.

171.3    Sec. 30. [442A.28] APPLICATION.
171.4This chapter does not abridge or supersede any authority of the Minnesota Pollution
171.5Control Agency or the commissioner of health, but is subject and supplementary thereto.
171.6Districts and members of district boards are subject to the authority of the Minnesota
171.7Pollution Control Agency and have no power or authority to abate or control pollution that
171.8is permitted by and in accord with any classification of waters, standards of water quality,
171.9or permit established, fixed, or issued by the Minnesota Pollution Control Agency.

171.10    Sec. 31. [442A.29] CHIEF ADMINISTRATIVE LAW JUDGE'S POWERS.
171.11    Subdivision 1. Alternative dispute resolution. (a) Notwithstanding sections
171.12442A.01 to 442A.28, before assigning a matter to an administrative law judge for hearing,
171.13the chief administrative law judge, upon consultation with affected parties and considering
171.14the procedures and principles established in sections 442A.01 to 442A.28, may require
171.15that disputes over proposed sanitary district creations, attachments, detachments, or
171.16dissolutions be addressed in whole or in part by means of alternative dispute resolution
171.17processes in place of, or in connection with, hearings that would otherwise be required
171.18under sections 442A.01 to 442A.28, including those provided in chapter 14.
171.19(b) In all proceedings, the chief administrative law judge has the authority and
171.20responsibility to conduct hearings and issue final orders related to the hearings under
171.21sections 442A.01 to 442A.28.
171.22    Subd. 2. Cost of proceedings. (a) The parties to any matter directed to alternative
171.23dispute resolution under subdivision 1 must pay the costs of the alternative dispute
171.24resolution process or hearing in the proportions that the parties agree to.
171.25(b) Notwithstanding section 14.53 or other law, the Office of Administrative
171.26Hearings is not liable for the costs.
171.27(c) If the parties do not agree to a division of the costs before the commencement of
171.28mediation, arbitration, or hearing, the costs must be allocated on an equitable basis by
171.29the mediator, arbitrator, or chief administrative law judge.
171.30(d) The chief administrative law judge may contract with the parties to a matter for
171.31the purpose of providing administrative law judges and reporters for an administrative
171.32proceeding or alternative dispute resolution.
171.33(e) The chief administrative law judge shall assess the cost of services rendered by
171.34the Office of Administrative Hearings as provided by section 14.53.
172.1    Subd. 3. Parties. In this section, "party" means:
172.2(1) a property owner, group of property owners, sanitary district, municipality, or
172.3township that files an initiating document or timely objection under this chapter;
172.4(2) the sanitary district, municipality, or township within which the subject area
172.5is located;
172.6(3) a municipality abutting the subject area; and
172.7(4) any other person, group of persons, or governmental agency residing in, owning
172.8property in, or exercising jurisdiction over the subject area that submits a timely request
172.9and is determined by the presiding administrative law judge to have a direct legal interest
172.10that will be affected by the outcome of the proceeding.
172.11    Subd. 4. Effectuation of agreements. Matters resolved or agreed to by the parties
172.12as a result of an alternative dispute resolution process, or otherwise, may be incorporated
172.13into one or more stipulations for purposes of further proceedings according to the
172.14applicable procedures and statutory criteria of this chapter.
172.15    Subd. 5. Limitations on authority. Nothing in this section shall be construed to
172.16permit a sanitary district, municipality, town, or other political subdivision to take, or
172.17agree to take, an action that is not otherwise authorized by this chapter.

172.18    Sec. 32. REPEALER.
172.19Minnesota Statutes 2012, sections 115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, and 10;
172.20115.19; 115.20; 115.21; 115.22; 115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29;
172.21115.30; 115.31; 115.32; 115.33; 115.34; 115.35; 115.36; and 115.37, are repealed.

172.22    Sec. 33. EFFECTIVE DATE.
172.23Unless otherwise provided in this article, sections 1 to 32 are effective August 1, 2013.

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