HF 976

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

A bill for an act
relating to state government; appropriating money for environment, natural
resources, and agriculture; modifying and providing for disposition of certain
revenue; modifying pesticide control; providing certain fee exemptions;
establishing agricultural water certification program; modifying Minnesota
Noxious Weed Law; providing for biobased and biofuel products; modifying
certain bond requirements; modifying animal waste technician provisions;
making technical changes; modifying certain permit requirements; providing for
federal law compliance; providing for certain easements; modifying all-terrain
vehicle operating provisions; establishing pollinator habitat program; modifying
snowmobile registration provisions; modifying state trails; modifying State
Timber Act; modifying certain park boundaries and expenditures; modifying
reporting requirements; modifying Petroleum Tank Release Cleanup Act;
providing for silica sand mining model standards and technical assistance;
providing for wastewater laboratory certification; providing for product
stewardship program; providing for discontinuance of Hennepin County Soil and
Water Conservation District; authorizing recreation of Hall's Island; providing
for certain interim ordinance extension or renewal; repealing certain pollution
control rules; modifying certain environmental review; modifying Water Law;
modifying public utilities provisions; providing certain criteria for wastewater
treatment systems; providing for sanitary districts; requiring studies and reports;
requiring rulemaking; amending Minnesota Statutes 2012, sections 13.6435, by
adding a subdivision; 13.7411, subdivision 4; 17.03, subdivision 3; 17.1015;
17.118, subdivision 2; 18.77, subdivisions 3, 4, 10, 12; 18.78, subdivision 3;
18.79, subdivisions 6, 13; 18.82, subdivision 1; 18.91, subdivisions 1, 2; 18B.01,
by adding a subdivision; 18B.07, subdivisions 4, 5, 7; 18B.26, subdivision 3;
18B.305; 18B.316, subdivisions 1, 3, 4, 8, 9; 18B.37, subdivision 4; 18C.111,
subdivision 4; 18C.430; 18C.433, subdivision 1; 31.94; 41A.10, subdivision 2,
by adding a subdivision; 41A.105, subdivisions 1a, 3, 5; 41A.12, subdivision
3, by adding a subdivision; 41B.04, subdivision 9; 41D.01, subdivision 4;
84.027, by adding a subdivision; 84.415, by adding a subdivision; 84.63; 84.82,
subdivision 3, by adding a subdivision; 84.8205, subdivision 1; 84.922, by
adding a subdivision; 84.9256, subdivision 1; 84.928, subdivision 1; 84D.108,
subdivision 2; 85.015, subdivision 13; 85.052, subdivision 6; 85.053, subdivision
8; 85.054, by adding a subdivision; 85.055, subdivisions 1, 2; 85.42; 89.0385;
90.01, subdivisions 4, 5, 6, 8, 11; 90.031, subdivision 4; 90.041, subdivisions
2, 5, 6, 9, by adding subdivisions; 90.045; 90.061, subdivision 8; 90.101,
subdivision 1; 90.121; 90.145; 90.151, subdivisions 1, 2, 3, 4, 6, 7, 8, 9;
90.161; 90.162; 90.171; 90.181, subdivision 2; 90.191, subdivision 1; 90.193;
90.195; 90.201, subdivision 2a; 90.211; 90.221; 90.252, subdivision 1; 90.301,
subdivisions 2, 4; 90.41, subdivision 1; 93.46, by adding a subdivision; 93.481,
subdivision 3; 97A.401, subdivision 3; 103G.265, subdivisions 2, 3; 103G.271,
subdivisions 1, 4; 103G.287, subdivisions 1, 4, 5; 103I.205, subdivision 1;
114D.50, subdivision 4; 115A.1320, subdivision 1; 115B.20, subdivision
6; 115B.28, subdivision 1; 115B.421; 115C.02, subdivision 4; 115C.08,
subdivision 4, by adding a subdivision; 115D.10; 116.48, subdivision 6; 116C.03,
subdivisions 2, 4, 5; 116D.04, by adding a subdivision; 116J.437, subdivision 1;
223.17, by adding a subdivision; 232.22, by adding a subdivision; 239.051, by
adding subdivisions; 239.761, subdivision 3; 239.791, subdivisions 1, 2a, 2b;
239.7911; 275.066; 282.04, subdivision 1; 296A.01, by adding a subdivision;
473.846; 583.215; Laws 2010, chapter 215, article 3, section 3, subdivision 6,
as amended; Laws 2010, chapter 361, article 3, section 7; proposing coding for
new law in Minnesota Statutes, chapters 17; 18; 84; 90; 93; 103G; 115; 115A;
116C; 383B; proposing coding for new law as Minnesota Statutes, chapter 442A;
repealing Minnesota Statutes 2012, sections 18.91, subdivisions 3, 5; 18B.07,
subdivision 6; 90.163; 90.173; 90.41, subdivision 2; 103G.265, subdivision 2a;
115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10; 115.19; 115.20; 115.21; 115.22;
115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29; 115.30; 115.31; 115.32;
115.33; 115.34; 115.35; 115.36; 115.37; 239.791, subdivision 1a; Laws 2011,
First Special Session chapter 2, article 4, section 30; Minnesota Rules, parts
7021.0010, subparts 1, 2, 4, 5; 7021.0020; 7021.0030; 7021.0040; 7021.0050,
subpart 5; 9210.0300; 9210.0310; 9210.0320; 9210.0330; 9210.0340; 9210.0350;
9210.0360; 9210.0370; 9210.0380; 9220.0530, subpart 6.

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

ARTICLE 1

AGRICULTURE APPROPRIATIONS

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made
in this article.
new text end

		new text begin 2014 new text end		new text begin 2015 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 39,050,000 new text end	new text begin $ new text end	new text begin 39,050,000 new text end	new text begin $ new text end	new text begin 78,100,000 new text end
new text begin Agricultural new text end	new text begin $ new text end	new text begin 1,240,000 new text end	new text begin $ new text end	new text begin 1,240,000 new text end	new text begin $ new text end	new text begin 2,480,000 new text end
new text begin Remediation new text end	new text begin $ new text end	new text begin 388,000 new text end	new text begin $ new text end	new text begin 388,000 new text end	new text begin $ new text end	new text begin 776,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 40,678,000 new text end	new text begin $ new text end	new text begin 40,678,000 new text end	new text begin $ new text end	new text begin 81,356,000 new text end

Sec. 2. new text begin AGRICULTURE APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this act. The appropriations are from the general
fund, or another named fund, and are available for the fiscal years indicated for each
purpose. The figures "2014" and "2015" used in this act mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2014, or June 30, 2015,
respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015.
"The biennium" is fiscal years 2014 and 2015.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2014 new text end		new text begin 2015 new text end

Sec. 3. new text begin DEPARTMENT OF AGRICULTURE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 33,198,000 new text end

new text begin $ new text end

new text begin 33,198,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2014 new text end	new text begin 2015 new text end
new text begin General new text end	new text begin 31,570,000 new text end	new text begin 31,570,000 new text end
new text begin Remediation new text end	new text begin 388,000 new text end	new text begin 388,000 new text end
new text begin Agricultural new text end	new text begin 1,240,000 new text end	new text begin 1,240,000 new text end

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

new text begin Subd. 2. new text end new text begin Protection Services new text end

new text begin 12,808,000 new text end

new text begin 12,808,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2014 new text end	new text begin 2015 new text end
new text begin General new text end	new text begin 11,980,000 new text end	new text begin 11,980,000 new text end
new text begin Agricultural new text end	new text begin 440,000 new text end	new text begin 440,000 new text end
new text begin Remediation new text end	new text begin 388,000 new text end	new text begin 388,000 new text end

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

new text begin $25,000 the first year and $25,000 the second
year are for compensation for destroyed or
crippled animals under Minnesota Statutes,
section 3.737. If the amount in the first year
is insufficient, the amount in the second year
is available in the first year.
new text end

new text begin $75,000 the first year and $75,000 the second
year are for compensation for crop damage
under Minnesota Statutes, section 3.7371. If
the amount in the first year is insufficient, the
amount in the second year is available in the
first year.
new text end

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

new text begin $225,000 the first year and $225,000 the
second year are for an increase in retail food
handler inspections.
new text end

new text begin $245,000 the first year and $245,000 the
second year are for an increase in the
operating budget for the Laboratory Services
Division.
new text end

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

new text begin $100,000 the first year and $100,000 the
second year are from the pesticide regulatory
account in the agricultural fund to monitor
pesticides and pesticide degradates in surface
water and groundwater in areas vulnerable to
surface water impairments and groundwater
degradation and to use data collected to
improve pesticide use practices. This is a
onetime appropriation.
new text end

new text begin $100,000 the first year and $100,000 the
second year are from the pesticide regulatory
account in the agricultural fund to update
and modify applicator education and training
materials. No later than January 15, 2015, the
commissioner must report to the legislative
committees with jurisdiction over agriculture
finance regarding the agency's progress and a
schedule of activities the commissioner will
accomplish to update and modify additional
materials by December 31, 2017.
new text end

new text begin Notwithstanding Minnesota Statutes, section
18B.05, $150,000 the first year and $150,000
the second year are from the pesticide
regulatory account in the agricultural fund to:
develop and use best management practices
that protect pollinators by providing habitat
necessary for their survival and reproduction;
incorporate these practices into pesticide
applicator and county agricultural inspector
training; and increase public awareness of
the importance of pollinators and pollinator
habitat. The commissioner may transfer a
portion of this appropriation to the Board of
Regents of the University of Minnesota to
design habitat and measure and report the
outcomes achieved under this paragraph.
This is a onetime appropriation.
new text end

new text begin Subd. 3. new text end new text begin Agricultural Marketing and Development new text end

new text begin 3,062,000 new text end

new text begin 3,062,000 new text end

new text begin $186,000 the first year and $186,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants
for Minnesota grown promotion under
Minnesota Statutes, section 17.102. Grants
may be made for one year. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract
on or before June 30, 2015, for Minnesota
grown grants in this paragraph are available
until June 30, 2017.
new text end

new text begin $100,000 each year is for a licensed
education professional for the agriculture
in the classroom program to develop and
disseminate curriculum, provide teacher
training opportunities, and work with
schools to enhance agricultural literacy by
incorporating agriculture into classroom
curriculum.
new text end

new text begin The commissioner may use funds
appropriated in this subdivision for annual
cost-share payments to resident farmers
or entities that sell, process, or package
agricultural products in this state for the costs
of organic certification. Annual cost-share
payments must be 75 percent of the cost of the
certification or $750, whichever is less. The
commissioner may allocate these funds for
organic market and program development,
including organic producer education efforts,
assistance for persons transitioning from
conventional to organic agriculture, or
sustainable agriculture demonstration grants
authorized under Minnesota Statutes, section
17.116, and pertaining to organic research or
demonstration. Any unencumbered balance
does not cancel at the end of the first year
and is available for the second year.
new text end

new text begin Subd. 4. new text end new text begin Bioenergy and Value-Added Agriculture new text end

new text begin 10,235,000 new text end

new text begin 10,235,000 new text end

new text begin $10,235,000 the first year and $10,235,000
the second year are for the agricultural
growth, research, and innovation program
in Minnesota Statutes, section 41A.12.
The commissioner shall consider creating
a competitive grant program for small
renewable energy projects for rural residents.
No later than February 1, 2014, and February
1, 2015, the commissioner must report to
the legislative committees with jurisdiction
over agriculture policy and finance regarding
the commissioner's accomplishments and
anticipated accomplishments in the following
areas: developing new markets for Minnesota
farmers by providing more fruits and
vegetables for Minnesota school children;
facilitating the start-up, modernization,
or expansion of livestock operations
including beginning and transitioning
livestock operations; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms; research
on conventional and cover crops; and biofuel
and other renewable energy development
including small renewable energy projects
for rural residents.
new text end

new text begin The commissioner may use up to 4.5 percent
of this appropriation for costs incurred to
administer the program. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered
under contract on or before June 30, 2015, for
agricultural growth, research, and innovation
grants in this subdivision are available until
June 30, 2017.
new text end

new text begin Money in this appropriation may be used
to provide additional assistance to persons
eligible for the pilot agricultural microloan
program under Minnesota Statutes, section
41B.056.
new text end

new text begin Funds in this appropriation may be used for
grants under this paragraph. The NextGen
Energy Board, established in Minnesota
Statutes, section 41A.105, shall make
recommendations to the commissioner on
grants for owners of Minnesota facilities
producing bioenergy, biobased content,
or a biobased formulated product; for
organizations that provide for on-station,
on-farm field scale research and outreach to
develop and test the agronomic and economic
requirements of diverse stands of prairie
plants and other perennials for bioenergy
systems; or for certain nongovernmental
entities. For the purposes of this paragraph,
"bioenergy" includes transportation fuels
derived from cellulosic material, as well as
the generation of energy for commercial heat,
industrial process heat, or electrical power
from cellulosic materials via gasification or
other processes. Grants are limited to 50
percent of the cost of research, technical
assistance, or equipment related to bioenergy,
biobased content, or biobased formulated
product production or $500,000, whichever
is less. Grants to nongovernmental entities
for the development of business plans and
structures related to community ownership
of eligible bioenergy facilities together may
not exceed $150,000. The board shall make
a good-faith effort to select projects that have
merit and, when taken together, represent a
variety of bioenergy technologies, biomass
feedstocks, and geographic regions of the
state. Projects must have a qualified engineer
provide certification on the technology and
fuel source. Grantees must provide reports
at the request of the commissioner. No later
than February 1, 2014, and February 1,
2015, the commissioner shall report on the
projects funded under this appropriation to
the legislative committees with jurisdiction
over agriculture policy and finance.
new text end

new text begin Money in this appropriation may be used
for sustainable agriculture grants under
Minnesota Statutes, section 17.116.
new text end

new text begin Notwithstanding Minnesota Statutes, section
41A.12, subdivision 3, of the amount
appropriated in this subdivision, $1,000,000
the first year and $1,000,000 the second year
are for distribution in equal amounts to each
of the state's county fairs to enhance arts
access and education and to preserve and
promote Minnesota's history and cultural
heritage.
new text end

new text begin Subd. 5. new text end new text begin Administration and Financial Assistance new text end

new text begin 7,093,000 new text end

new text begin 7,093,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 6,293,000 new text end	new text begin 6,293,000 new text end
new text begin Agricultural new text end	new text begin 800,000 new text end	new text begin 800,000 new text end

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

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

new text begin $18,000 the first year and $18,000 the
second year are for a grant to the Minnesota
Livestock Breeders Association.
new text end

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

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

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

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

new text begin $500,000 the first year and $500,000 the
second year are for grants to Second Harvest
Heartland on behalf of Minnesota's six
Second Harvest food banks for the purchase
of milk for distribution to Minnesota's food
shelves and other charitable organizations
that are eligible to receive food from the food
banks. Milk purchased under the grants must
be acquired from Minnesota milk processors
and based on low-cost bids. The milk must be
allocated to each Second Harvest food bank
serving Minnesota according to the formula
used in the distribution of United States
Department of Agriculture commodities
under The Emergency Food Assistance
Program (TEFAP). Second Harvest
Heartland must submit quarterly reports
to the commissioner on forms prescribed
by the commissioner. The reports must
include, but are not limited to, information
on the expenditure of funds, the amount
of milk purchased, and the organizations
to which the milk was distributed. Second
Harvest Heartland may enter into contracts
or agreements with food banks for shared
funding or reimbursement of the direct
purchase of milk. Each food bank receiving
money from this appropriation may use up to
two percent of the grant for administrative
expenses.
new text end

new text begin $94,000 the first year and $94,000 the
second year are for transfer to the Board of
Trustees of the Minnesota State Colleges
and Universities for statewide mental health
counseling support to farm families and
business operators through farm business
management programs at Central Lakes
College and Ridgewater College.
new text end

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

new text begin Notwithstanding Minnesota Statutes,
section 18C.131, $800,000 the first year
and $800,000 the second year are from the
fertilizer account in the agricultural fund
for grants for fertilizer research as awarded
by the Minnesota Agricultural Fertilizer
Research and Education Council under
Minnesota Statutes, section 18C.71. The
amount appropriated in either fiscal year
must not exceed 57 percent of the inspection
fee revenue collected under Minnesota
Statutes, section 18C.425, subdivision 6,
during the previous fiscal year. No later
than February 1, 2015, the commissioner
shall report to the legislative committees
with jurisdiction over agriculture finance.
The report must include the progress and
outcome of funded projects as well as the
sentiment of the council concerning the need
for additional research funds.
new text end

Sec. 4. new text begin BOARD OF ANIMAL HEALTH new text end

new text begin $ new text end

new text begin 4,837,000 new text end

new text begin $ new text end

new text begin 4,837,000 new text end

Sec. 5. new text begin AGRICULTURAL UTILIZATION RESEARCH INSTITUTE new text end

new text begin $ new text end

new text begin 2,643,000 new text end

new text begin $ new text end

new text begin 2,643,000 new text end

ARTICLE 2

AGRICULTURE POLICY

Section 1.

Minnesota Statutes 2012, section 13.6435, is amended by adding a
subdivision to read:

new text begin Subd. 14. new text end

new text begin Agricultural water quality certification program. new text end

new text begin Data collected
under the Minnesota agricultural water quality certification program are classified under
section 17.9899.
new text end

Sec. 2.

Minnesota Statutes 2012, section 17.03, subdivision 3, is amended to read:

Subd. 3.

Cooperation with federal agencies.

(a) The commissioner shall cooperate
with the government of the United States, with financial agencies created to assist in the
development of the agricultural resources of this state, and so far as practicable may use
the facilities provided by the existing state departments and the various state and local
organizations. This subdivision is intended to relate to every function and duty which
devolves upon the commissioner.

(b) The commissioner may apply for, receive, and disburse federal funds made
available to the state by federal law or regulation for any purpose related to the powers and
duties of the commissioner. All money received by the commissioner under this paragraph
shall be deposited in the state treasury and is appropriated to the commissioner for the
purposes for which it was received. new text begin Money made available under this paragraph may
be paid pursuant to applicable federal regulations and rate structures. new text end Money received
under this paragraph does not cancel and is available for expenditure according to federal
law. The commissioner may contract with and enter into grant agreements with persons,
organizations, educational institutions, firms, corporations, other state agencies, and any
agency or instrumentality of the federal government to carry out agreements made with
the federal government relating to the expenditure of money under this paragraph. Bid
requirements under chapter 16C do not apply to contracts under this paragraph.

Sec. 3.

Minnesota Statutes 2012, section 17.1015, is amended to read:

17.1015 PROMOTIONAL EXPENDITURES.

In order to accomplish the purposes of section 17.101, the commissioner may
participate jointly with private persons in appropriate programs and projects and may enter
into contracts to carry out those programs and projects. The contracts may not include
the acquisition of land or buildings and are not subject to the provisions of chapter 16C
relating to competitive bidding.

The commissioner may spend money appropriated for the purposes of section
17.101 new text begin in the same manner that private persons, firms, corporations, and associations
make expenditures for these purposes new text end , and expenditures made pursuant to section 17.101
for food, lodging, or travel are not governed by the travel rules of the commissioner of
management and budget.

Sec. 4.

Minnesota Statutes 2012, section 17.118, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.

(b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed
cervidae, ratitae, bison, sheep, horses, and llamas.

(c) "Qualifying expenditures" means the amount spent for:

(1) the acquisition, construction, or improvement of buildings or facilities for the
production of livestock or livestock products;

(2) the development of pasture for use by livestock including, but not limited to, the
acquisition, development, or improvement of:

(i) lanes used by livestock that connect pastures to a central location;

(ii) watering systems for livestock on pasture including water lines, booster pumps,
and well installations;

(iii) livestock stream crossing stabilization; and

(iv) fences; or

(3) the acquisition of equipment for livestock housing, confinement, feeding, and
waste management including, but not limited to, the following:

(i) freestall barns;

(ii) watering facilities;

(iii) feed storage and handling equipment;

(iv) milking parlors;

(v) robotic equipment;

(vi) scales;

(vii) milk storage and cooling facilities;

(viii) bulk tanks;

(ix) computer hardware and software and associated equipment used to monitor
the productivity and feeding of livestock;

(x) manure pumping and storage facilities;

(xi) swine farrowing facilities;

(xii) swine and cattle finishing barns;

(xiii) calving facilities;

(xiv) digesters;

(xv) equipment used to produce energy;

(xvi) on-farm processing facilities equipment;

(xvii) fences; and

(xviii) livestock pens and corrals and sorting, restraining, and loading chutes.

Except for qualifying pasture development expenditures under clause (2), qualifying
expenditures only include amounts that are allowed to be capitalized and deducted under
either section 167 or 179 of the Internal Revenue Code in computing federal taxable
income. Qualifying expenditures do not include an amount paid to refinance existing debt.

deleted text begin (d) "Qualifying period" means, for a grant awarded during a fiscal year, that full
calendar year of which the first six months precede the first day of the current fiscal year. For
example, an eligible person who makes qualifying expenditures during calendar year 2008
is eligible to receive a livestock investment grant between July 1, 2008, and June 30, 2009.
deleted text end

Sec. 5.

new text begin [17.9891] PURPOSE.
new text end

new text begin The commissioner, in consultation with the commissioner of natural resources,
commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
may implement a Minnesota agricultural water quality certification program whereby a
producer who demonstrates practices and management sufficient to protect water quality
is certified for up to ten years and presumed to be contributing the producer's share of
any targeted reduction of water pollutants during the certification period. The program
is voluntary. The voluntary program will first be piloted in selected watersheds across
the state, until the commissioner, in consultation with the Minnesota Agricultural Water
Quality Certification Program Advisory Committee, commissioner of natural resources,
commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
determines the program is suitable to be implemented in other watersheds.
new text end

Sec. 6.

new text begin [17.9892] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin The definitions in this section apply to sections
17.9891 to 17.993.
new text end

new text begin Subd. 2. new text end

new text begin Certification. new text end

new text begin "Certification" means a producer has demonstrated
compliance with all applicable environmental rules and statutes for all of the producer's
owned and rented agricultural land and has achieved a satisfactory score through the
certification instrument as verified by a certifying agent.
new text end

new text begin Subd. 3. new text end

new text begin Certifying agent. new text end

new text begin "Certifying agent" means a person who is authorized
by the commissioner to assess producers to determine whether a producer satisfies the
standards of the program.
new text end

new text begin Subd. 4. new text end

new text begin Effective control. new text end

new text begin "Effective control" means possession of land by
ownership, written lease, or other legal agreement and authority to act as decision
maker for the day-to-day management of the operation at the time the producer achieves
certification and for the required certification period.
new text end

new text begin Subd. 5. new text end

new text begin Eligible land. new text end

new text begin "Eligible land" means all acres of a producer's agricultural
operation, whether contiguous or not, that are under the effective control of the producer
at the time the producer enters into the program and that the producer operates with
equipment, labor, and management.
new text end

new text begin Subd. 6. new text end

new text begin Program. new text end

new text begin "Program" means the Minnesota agricultural water quality
certification program.
new text end

new text begin Subd. 7. new text end

new text begin Technical assistance. new text end

new text begin "Technical assistance" means professional, advisory,
or cost-share assistance provided to individuals in order to achieve certification.
new text end

Sec. 7.

new text begin [17.9893] CERTIFICATION INSTRUMENT.
new text end

new text begin The commissioner, in consultation with the Minnesota Agricultural Water Quality
Certification Program Advisory Committee, commissioner of natural resources,
commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
shall develop an analytical instrument to assess the water quality practices and
management of agricultural operations. This instrument shall be used to certify that the
water quality practices and management of an agricultural operation are consistent with
state water quality goals and standards. The commissioner shall define a satisfactory score
for certification purposes. The certification instrument tool shall:
new text end

new text begin (1) integrate applicable existing regulatory requirements;
new text end

new text begin (2) utilize technology and prioritize ease of use;
new text end

new text begin (3) utilize a water quality index or score applicable to the landscape;
new text end

new text begin (4) incorporate a process for updates and revisions as practices, management, and
technology changes become established and approved; and
new text end

new text begin (5) comprehensively address water quality impacts.
new text end

Sec. 8.

new text begin [17.9894] CERTIFYING AGENT LICENSE.
new text end

new text begin Subdivision 1. new text end

new text begin License. new text end

new text begin A person who offers certification services to producers
as part of the program must satisfy all criteria in subdivision 2 and be licensed by
the commissioner. A certifying agent is ineligible to provide certification services
to any producer to whom the certifying agent has also provided technical assistance.
Notwithstanding section 16A.1283, the commissioner may set license fees.
new text end

new text begin Subd. 2. new text end

new text begin Certifying agent requirements. new text end

new text begin In order to be licensed as a certifying
agent, a person must:
new text end

new text begin (1) be an agricultural conservation professional employed by a soil and water
conservation district or the Natural Resources Conservation Service, a Minnesota certified
crop advisor recognized by the American Society of Agronomy, or an individual with
agricultural conservation experience approved by the commissioner. The commissioner
may establish eligibility criteria by rule;
new text end

new text begin (2) have passed a comprehensive exam, as set by the commissioner, evaluating
knowledge of water quality, soil health, best farm management techniques, and the
certification instrument; and
new text end

new text begin (3) maintain continuing education requirements as set by the commissioner.
new text end

Sec. 9.

new text begin [17.9895] DUTIES OF A CERTIFYING AGENT.
new text end

new text begin Subdivision 1. new text end

new text begin Duties. new text end

new text begin A certifying agent shall conduct a formal certification
assessment utilizing the certification instrument to determine whether a producer meets
program criteria. If a producer satisfies all requirements, the certifying agent shall notify
the commissioner of the producer's eligibility and request that the commissioner issue a
certificate. All records and documents used in the assessment shall be compiled by the
certifying agent and submitted to the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Violations. new text end

new text begin (a) In the event a certifying agent violates any provision of
sections 17.9891 to 17.993 or an order of the commissioner, the commissioner may issue a
written warning or a correction order and may suspend or revoke a license.
new text end

new text begin (b) If the commissioner suspends or revokes a license, the certifying agent has ten
days from the date of suspension or revocation to appeal. If a certifying agent appeals, the
commissioner shall hold an administrative hearing within 30 days of the suspension or
revocation of the license, or longer by agreement of the parties, to determine whether the
license is revoked or suspended. The commissioner shall issue an opinion within 30 days.
If a person notifies the commissioner that the person intends to contest the commissioner's
opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with
the applicable provisions of chapter 14 for hearings in contested cases.
new text end

Sec. 10.

new text begin [17.9896] CERTIFICATION PROCEDURES.
new text end

new text begin Subdivision 1. new text end

new text begin Producer duties. new text end

new text begin A producer who seeks certification of eligible land
shall conduct an initial assessment using the certification instrument, obtain technical
assistance if necessary to achieve a satisfactory score on the certification instrument, and
apply for certification from a licensed certifying agent.
new text end

new text begin Subd. 2. new text end

new text begin Owned land. new text end

new text begin Once certified, if a producer obtains ownership of additional
agricultural land, the producer must notify a certifying agent and obtain certification of the
additional land within one year in order to retain the producer's original certification.
new text end

new text begin Subd. 3. new text end

new text begin Leased land. new text end

new text begin Once certified, if a producer leases additional land, then the
producer must notify a certifying agent before farming operations commence on the newly
leased land. A producer who operates leased land is not required to implement practices
that permanently alter the landscape in order to be certified or remain certified if the land
is added following the original certification. A producer who operates leased land must
demonstrate sufficient annual crop management practices, consistent with the original
certification agreement, in order to remain certified.
new text end

new text begin Subd. 4. new text end

new text begin Violations. new text end

new text begin (a) The commissioner may revoke a certification if the
producer violates subdivision 2 or 3.
new text end

new text begin (b) The commissioner may revoke a certification and seek reimbursement of any
monetary benefit a producer may have received due to certification from a producer who
fails to maintain certification criteria.
new text end

new text begin (c) If the commissioner revokes a certification, the producer has 30 days from the
date of suspension or revocation to appeal. If a producer appeals, the commissioner shall
hold an administrative hearing within 30 days of the suspension or revocation of the
certification, or longer by agreement of the parties, to determine whether the certification
is revoked or suspended. The commissioner shall issue an opinion within 30 days. If the
producer notifies the commissioner that the producer intends to contest the commissioner's
opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with
the applicable provisions of chapter 14 for hearings in contested cases.
new text end

Sec. 11.

new text begin [17.9897] CERTIFICATION CERTAINTY.
new text end

new text begin (a) Once a producer is certified, the producer:
new text end

new text begin (1) retains certification for up to ten years from the date of certification if the
producer complies with the certification agreement, even if the producer does not comply
with new state water protection laws or rules that take effect during the certification period;
new text end

new text begin (2) is presumed to be meeting the producer's contribution to any targeted reduction
of pollutants during the certification period;
new text end

new text begin (3) is required to continue implementation of practices that maintain the producer's
certification; and
new text end

new text begin (4) is required to retain all records pertaining to certification.
new text end

new text begin (b) Paragraph (a) does not preclude enforcement of a local rule or ordinance by a
local unit of government.
new text end

Sec. 12.

new text begin [17.9898] AUDITS.
new text end

new text begin The commissioner shall perform random audits of producers and certifying agents to
ensure compliance with the program. All producers and certifying agents shall cooperate
with the commissioner during these audits, and provide all relevant documents to the
commissioner for inspection and copying. Any delay, obstruction, or refusal to cooperate
with the commissioner's audit or falsification of or failure to provide required data or
information is a violation subject to the provisions of section 17.9895, subdivision 2, or
17.9896, subdivision 3.
new text end

Sec. 13.

new text begin [17.9899] DATA.
new text end

new text begin All data collected under the program that identifies a producer or a producer's
location are considered nonpublic data as defined in section 13.02, subdivision 9, or
private data on individuals as defined in section 13.02, subdivision 12. The commissioner
shall make available summary data of program outcomes on data classified as private
or nonpublic under this section.
new text end

Sec. 14.

new text begin [17.991] RULEMAKING.
new text end

new text begin The commissioner may adopt rules to implement the program.
new text end

Sec. 15.

new text begin [17.992] REPORTS.
new text end

new text begin The commissioner, in consultation with the Minnesota Agricultural Water Quality
Certification Program Advisory Committee, commissioner of natural resources,
commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
shall issue a biennial report to the chairs and ranking minority members of the legislative
committees with jurisdiction over agricultural policy on the status of the program.
new text end

Sec. 16.

new text begin [17.993] FINANCIAL ASSISTANCE.
new text end

new text begin The commissioner may use contributions from gifts or other state accounts, provided
that the purpose of the expenditure is consistent with the purpose of the accounts, for
grants, loans, or other financial assistance.
new text end

Sec. 17.

Minnesota Statutes 2012, section 18.77, subdivision 3, is amended to read:

Subd. 3.

Control.

"Control" means to deleted text begin destroy all or part of the aboveground
growth of noxious weeds deleted text end new text begin manage or prevent the maturation and spread of propagating
parts of noxious weeds from one area to another new text end by a lawful method that does not cause
unreasonable adverse effects on the environment as defined in section 18B.01, subdivision
31 deleted text begin , and prevents the maturation and spread of noxious weed propagating parts from one
area to another deleted text end .

Sec. 18.

Minnesota Statutes 2012, section 18.77, subdivision 4, is amended to read:

Subd. 4.

Eradicate.

"Eradicate" means to destroy the aboveground deleted text begin growth and the
roots deleted text end new text begin and belowground plant parts new text end of noxious weeds by a lawful method deleted text begin that deleted text end new text begin , which
new text end prevents the maturation and spread of noxious weed propagating parts from one area
to another.

Sec. 19.

Minnesota Statutes 2012, section 18.77, subdivision 10, is amended to read:

Subd. 10.

Permanent pasture, hay meadow, woodlot, deleted text begin and deleted text end new text begin or new text end other noncrop
area.

"Permanent pasture, hay meadow, woodlot, deleted text begin and deleted text end new text begin or new text end other noncrop area" means an
area of predominantly native or seeded perennial plants that can be used for grazing or hay
purposes but is not harvested on a regular basis and is not considered to be a growing crop.

Sec. 20.

Minnesota Statutes 2012, section 18.77, subdivision 12, is amended to read:

Subd. 12.

Propagating parts.

"Propagating parts" means new text begin all new text end plant parts, including
seeds, that are capable of producing new plants.

Sec. 21.

new text begin [18.771] NOXIOUS WEED CATEGORIES.
new text end

new text begin (a) For purposes of designation under section 18.79, subdivision 13, noxious weed
category means each of the following categories.
new text end

new text begin (b) "Prohibited noxious weeds" includes noxious weeds that must be controlled or
eradicated on all lands within the state. Transportation of a prohibited noxious weed's
propagating parts is restricted by permit except as allowed by section 18.82. Prohibited
noxious weeds may not be sold or propagated in Minnesota. There are two regulatory
listings for prohibited noxious weeds in Minnesota:
new text end

new text begin (1) the noxious weed eradicate list is established. Prohibited noxious weeds placed
on the noxious weed eradicate list are plants that are not currently known to be present in
Minnesota or are not widely established. These species must be eradicated; and
new text end

new text begin (2) the noxious weed control list is established. Prohibited noxious weeds placed on
the noxious weed control list are plants that are already established throughout Minnesota
or regions of the state. Species on this list must at least be controlled.
new text end

new text begin (c) "Restricted noxious weeds" includes noxious weeds that are widely distributed
in Minnesota, but for which the only feasible means of control is to prevent their spread
by prohibiting the importation, sale, and transportation of their propagating parts in the
state, except as allowed by section 18.82.
new text end

new text begin (d) "Specially regulated plants" includes noxious weeds that may be native
species or have demonstrated economic value, but also have the potential to cause harm
in noncontrolled environments. Plants designated as specially regulated have been
determined to pose ecological, economical, or human or animal health concerns. Species
specific management plans or rules that define the use and management requirements
for these plants must be developed by the commissioner of agriculture for each plant
designated as specially regulated. The commissioner must also take measures to minimize
the potential for harm caused by these plants.
new text end

new text begin (e) "County noxious weeds" includes noxious weeds that are designated by
individual county boards to be enforced as prohibited noxious weeds within the county's
jurisdiction and must be approved by the commissioner of agriculture, in consultation with
the Noxious Weed Advisory Committee. Each county board must submit newly proposed
county noxious weeds to the commissioner of agriculture for review. Approved county
noxious weeds shall also be posted with the county's general weed notice prior to May 15
each year. Counties are solely responsible for developing county noxious weed lists and
their enforcement.
new text end

Sec. 22.

Minnesota Statutes 2012, section 18.78, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Cooperative deleted text end Weed control agreement.

The commissioner, municipality,
or county agricultural inspector or county-designated employee may enter into a
deleted text begin cooperative deleted text end weed control agreement with a landowner or weed management area
group to establish a mutually agreed-upon noxious weed management plan for up to
three years duration, whereby a noxious weed problem will be controlled without
additional enforcement action. If a property owner fails to comply with the noxious weed
management plan, an individual notice may be served.

Sec. 23.

Minnesota Statutes 2012, section 18.79, subdivision 6, is amended to read:

Subd. 6.

Training for control or eradication of noxious weeds.

The commissioner
shall conduct initial training considered necessary for inspectors and county-designated
employees in the enforcement of the Minnesota Noxious Weed Law. The director of deleted text begin the
deleted text end new text begin University of new text end Minnesota Extension deleted text begin Service deleted text end may conduct educational programs for the
general public that will aid compliance with the Minnesota Noxious Weed Law. Upon
request, the commissioner may provide information and other technical assistance to the
county agricultural inspector or county-designated employee to aid in the performance of
responsibilities specified by the county board under section 18.81, subdivisions 1a and 1b.

Sec. 24.

Minnesota Statutes 2012, section 18.79, subdivision 13, is amended to read:

Subd. 13.

Noxious weed designation.

The commissioner, in consultation with the
Noxious Weed Advisory Committee, shall determine which plants are noxious weeds
subject to deleted text begin control deleted text end new text begin regulation new text end under sections 18.76 to 18.91. The commissioner shall
prepare, publish, and revise as necessary, but at least once every three years, a list of
noxious weeds and their designated classification. The list must be distributed to the public
by the commissioner who may request the help of deleted text begin the deleted text end University of Minnesota Extension,
the county agricultural inspectors, and any other organization the commissioner considers
appropriate to assist in the distribution. The commissioner may, in consultation with
the Noxious Weed Advisory Committee, accept and consider noxious weed designation
petitions from Minnesota citizens or Minnesota organizations or associations.

Sec. 25.

Minnesota Statutes 2012, section 18.82, subdivision 1, is amended to read:

Subdivision 1.

Permits.

Except as provided in section 21.74, if a person wants to
transport along a public highway materials or equipment containing the propagating
parts of weeds designated as noxious by the commissioner, the person must secure a
written permit for transportation of the material or equipment from an inspector or
county-designated employee. Inspectors or county-designated employees may issue
permits to persons residing or operating within their jurisdiction. deleted text begin If the noxious weed
propagating parts are removed from materials and equipment or devitalized before
being transported, a permit is not needed deleted text end new text begin A permit is not required for the transport of
noxious weeds for the purpose of destroying propagating parts at a Department of
Agriculture-approved disposal site. Anyone transporting noxious weed propagating parts
for the purpose of disposal at an approved site shall ensure that all materials are contained
in a manner that prevents escape during transport new text end .

Sec. 26.

Minnesota Statutes 2012, section 18.91, subdivision 1, is amended to read:

Subdivision 1.

Duties.

The commissioner shall consult with the Noxious Weed
Advisory Committee to advise the commissioner concerning responsibilities under
the noxious weed control program. The committee shall deleted text begin also deleted text end evaluate species for
invasiveness, difficulty of control, cost of control, benefits, and amount of injury caused
by them. For each species evaluated, the committee shall recommend to the commissioner
on which noxious weed list or lists, if any, the species should be placed. Species deleted text begin currently
deleted text end designated as prohibited or restricted noxious weeds new text begin or specially regulated plants new text end must
be reevaluated every three years for a recommendation on whether or not they need to
remain on the noxious weed lists. new text begin The committee shall also advise the commissioner on
the implementation of the Minnesota Noxious Weed Law and assist the commissioner in
the development of management criteria for each noxious weed category. new text end Members of
the committee are not entitled to reimbursement of expenses nor payment of per diem.
Members shall serve two-year terms with subsequent reappointment by the commissioner.

Sec. 27.

Minnesota Statutes 2012, section 18.91, subdivision 2, is amended to read:

Subd. 2.

Membership.

The commissioner shall appoint members, which shall
include representatives from the following:

(1) horticultural science, agronomy, and forestry at the University of Minnesota;

(2) the nursery and landscape industry in Minnesota;

(3) the seed industry in Minnesota;

(4) the Department of Agriculture;

(5) the Department of Natural Resources;

(6) a conservation organization;

(7) an environmental organization;

(8) at least two farm organizations;

(9) the county agricultural inspectors;

(10) city, township, and county governments;

(11) the Department of Transportation;

(12) the University of Minnesota Extension;

(13) the timber and forestry industry in Minnesota;

(14) the Board of Water and Soil Resources; deleted text begin and
deleted text end

(15) soil and water conservation districts deleted text begin . deleted text end new text begin ;
new text end

new text begin (16) Minnesota Association of County Land Commissioners; and
new text end

new text begin (17) members as needed.
new text end

Sec. 28.

Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Bulk pesticide storage facility. new text end

new text begin "Bulk pesticide storage facility" means a
facility that is required to have a permit under section 18B.14.
new text end

Sec. 29.

Minnesota Statutes 2012, section 18B.07, subdivision 4, is amended to read:

Subd. 4.

Pesticide new text begin storage new text end safeguards deleted text begin at application sites deleted text end .

A person may not
allow a pesticide, rinsate, or unrinsed pesticide container to be stored, kept, or to remain in
or on any site without safeguards adequate to prevent an incident. new text begin Pesticides may not be
stored in an area with access to an open drain, unless a safeguard is provided.
new text end

Sec. 30.

Minnesota Statutes 2012, section 18B.07, subdivision 5, is amended to read:

Subd. 5.

Use of deleted text begin public deleted text end water supplies for filling new text begin application new text end equipment.

new text begin (a) new text end A
person may not fill pesticide application equipment directly from a public water supply,
as defined in section 144.382, new text begin or from public waters, as defined in section 103G.005,
subdivision 15, new text end unless the deleted text begin outlet from the public deleted text end new text begin equipment or new text end water supply is equipped
with a backflow prevention device that complies with the Minnesota Plumbing Code
under Minnesota Rules, parts 4715.2000 to 4715.2280.

new text begin (b) Cross connections between a water supply used for filling pesticide application
equipment are prohibited.
new text end

new text begin (c) This subdivision does not apply to permitted applications of aquatic pesticides to
public waters.
new text end

Sec. 31.

Minnesota Statutes 2012, section 18B.07, subdivision 7, is amended to read:

Subd. 7.

deleted text begin Cleaning equipment in or near surface water deleted text end new text begin Pesticide handling
restrictions new text end .

(a) A person may not:

(1) clean pesticide application equipment in surface waters of the state; or

(2) fill or clean pesticide application equipment adjacent to surface waters,
ditches, or wells where, because of the slope or other conditions, pesticides or materials
contaminated with pesticides could enter or contaminate the surface waters, groundwater,
or wells, as a result of overflow, leakage, or other causes.

(b) This subdivision does not apply to permitted application of aquatic pesticides to
public waters.

Sec. 32.

Minnesota Statutes 2012, section 18B.26, subdivision 3, is amended to read:

Subd. 3.

Registration application and gross sales fee.

(a) For an agricultural
pesticide, a registrant shall pay an annual registration application fee for each agricultural
pesticide of $350. The fee is due by December 31 preceding the year for which the
application for registration is made. The fee is nonrefundable.

(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual
registration application fee for each nonagricultural pesticide of $350. The fee is due by
December 31 preceding the year for which the application for registration is made. The
fee is nonrefundable. The registrant of a nonagricultural pesticide shall pay, in addition to
the $350 minimum fee, a fee of 0.5 percent of annual gross sales of the nonagricultural
pesticide in the state and the annual gross sales of the nonagricultural pesticide sold into
the state for use in this state. deleted text begin The commissioner may not assess a fee under this paragraph
if the amount due based on percent of annual gross sales is less than $10 deleted text end new text begin No fee is required
if the fee due amount based on percent of annual gross sales of a nonagricultural pesticide
is less than $10 new text end . The registrant shall secure sufficient sales information of nonagricultural
pesticides distributed into this state from distributors and dealers, regardless of distributor
location, to make a determination. Sales of nonagricultural pesticides in this state and
sales of nonagricultural pesticides for use in this state by out-of-state distributors are not
exempt and must be included in the registrant's annual report, as required under paragraph
(g), and fees shall be paid by the registrant based upon those reported sales. Sales of
nonagricultural pesticides in the state for use outside of the state are exempt from the
gross sales fee in this paragraph if the registrant properly documents the sale location and
distributors. A registrant paying more than the minimum fee shall pay the balance due by
March 1 based on the gross sales of the nonagricultural pesticide by the registrant for the
preceding calendar year. A pesticide determined by the commissioner to be a sanitizer or
disinfectant is exempt from the gross sales fee.

(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed
pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the
agricultural pesticide in the state and the annual gross sales of the agricultural pesticide
sold into the state for use in this state.

(d) In those cases where a registrant first sells an agricultural pesticide in or into the
state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer
license and is responsible for payment of the annual gross sales fee under paragraph (c),
record keeping under paragraph (i), and all other requirements of section 18B.316.

(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013,
by the commissioner on the registration and sale of pesticides is less than $6,600,000, the
commissioner, after a public hearing, may increase proportionally the pesticide sales and
product registration fees under this chapter by the amount necessary to ensure this level
of revenue is achieved. The authority under this section expires on June 30, 2014. The
commissioner shall report any fee increases under this paragraph 60 days before the fee
change is effective to the senate and house of representatives agriculture budget divisions.

(f) An additional fee of 50 percent of the registration application fee must be paid by
the applicant for each pesticide to be registered if the application is a renewal application
that is submitted after December 31.

(g) A registrant must annually report to the commissioner the amount, type and
annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or
otherwise distributed in the state. The report shall be filed by March 1 for the previous
year's registration. The commissioner shall specify the form of the report or approve
the method for submittal of the report and may require additional information deemed
necessary to determine the amount and type of nonagricultural pesticide annually
distributed in the state. The information required shall include the brand name, United
States Environmental Protection Agency registration number, and amount of each
nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but
the information collected, if made public, shall be reported in a manner which does not
identify a specific brand name in the report.

(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually
report to the commissioner the amount, type, and annual gross sales of each registered
agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the
state for use in the state. The report must be filed by January 31 for the previous year's
sales. The commissioner shall specify the form, contents, and approved electronic method
for submittal of the report and may require additional information deemed necessary to
determine the amount and type of agricultural pesticide annually distributed within the
state or into the state. The information required must include the brand name, United States
Environmental Protection Agency registration number, and amount of each agricultural
pesticide sold, offered for sale, or otherwise distributed in the state or into the state.

(i) A person who registers a pesticide with the commissioner under paragraph (b),
or a registrant under paragraph (d), shall keep accurate records for five years detailing
all distribution or sales transactions into the state or in the state and subject to a fee and
surcharge under this section.

(j) The records are subject to inspection, copying, and audit by the commissioner
and must clearly demonstrate proof of payment of all applicable fees and surcharges
for each registered pesticide product sold for use in this state. A person who is located
outside of this state must maintain and make available records required by this subdivision
in this state or pay all costs incurred by the commissioner in the inspecting, copying, or
auditing of the records.

(k) The commissioner may adopt by rule regulations that require persons subject
to audit under this section to provide information determined by the commissioner to be
necessary to enable the commissioner to perform the audit.

(l) A registrant who is required to pay more than the minimum fee for any pesticide
under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee
paid after March 1 in the year for which the license is to be issued.

Sec. 33.

Minnesota Statutes 2012, section 18B.305, is amended to read:

18B.305 PESTICIDE EDUCATION AND TRAINING.

Subdivision 1.

Education and training.

(a) The commissioner new text begin , as the lead agency,
new text end shall develop, new text begin implement or approve, and evaluate, new text end in deleted text begin conjunction deleted text end new text begin consultation new text end with deleted text begin the
deleted text end University of Minnesota Extension deleted text begin Service deleted text end new text begin , the Minnesota State Colleges and Universities
system, and other educational institutions new text end , innovative educational and training programs
addressing pesticide concerns including:

(1) water quality protection;

(2) endangered species new text begin protection new text end ;

(3) new text begin minimizing new text end pesticide residues in food and water;

(4) worker protection new text begin and applicator safety new text end ;

(5) chronic toxicity;

(6) integrated pest management new text begin and pest resistance new text end ; deleted text begin and
deleted text end

(7) pesticide disposal new text begin ;
new text end

new text begin (8) pesticide drift;
new text end

new text begin (9) relevant laws including pesticide labels and labeling and state and federal rules
and regulations; and
new text end

new text begin (10) current science and technology updates new text end .

(b) The commissioner shall appoint educational planning committees which must
include representatives of industry new text begin and applicators new text end .

(c) Specific current regulatory concerns must be discussed and, if appropriate,
incorporated into each training session. new text begin Relevant changes to pesticide product labels or
labeling or state and federal rules and regulations may be included.
new text end

(d) The commissioner may approve programs from private industry new text begin , higher
education institutions, new text end and nonprofit organizations that meet minimum requirements for
education, training, and certification.

Subd. 2.

Training manual and examination development.

The commissioner, in
deleted text begin conjunction deleted text end new text begin consultation new text end with deleted text begin the deleted text end University of Minnesota Extension deleted text begin Service deleted text end new text begin and other
higher education institutions new text end , shall continually revise and update pesticide applicator
training manuals and examinations. The manuals and examinations must be written to meet
or exceed the minimum standards required by the United States Environmental Protection
Agency and pertinent state specific information. Questions in the examinations must be
determined by the new text begin commissioner in consultation with other new text end responsible agencies. Manuals
and examinations must include pesticide management practices that discuss prevention of
pesticide occurrence in deleted text begin groundwaters deleted text end new text begin groundwater and surface water new text end of the state.

Sec. 34.

Minnesota Statutes 2012, section 18B.316, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) A person must not deleted text begin distribute deleted text end new text begin offer for sale new text end or sell
an agricultural pesticide in the state or into the state without first obtaining an agricultural
pesticide dealer license.

(b) Each location or place of business from which an agricultural pesticide is
deleted text begin distributed deleted text end new text begin offered for sale new text end or sold in the state or into the state is required to have a
separate agricultural pesticide dealer license.

(c) A person who is a licensed pesticide dealer under section 18B.31 is not required
to also be licensed under this subdivision.

Sec. 35.

Minnesota Statutes 2012, section 18B.316, subdivision 3, is amended to read:

Subd. 3.

Resident agent.

A person required to be licensed under subdivisions 1
and 2, or a person licensed as a pesticide dealer pursuant to section 18B.31 and who
operates from a location or place of business outside the state and who deleted text begin distributes deleted text end new text begin offers
for sale new text end or sells an agricultural pesticide into the state, must continuously maintain in
this state the following:

(1) a registered office; and

(2) a registered agent, who may be either a resident of this state whose business
office or residence is identical with the registered office under clause (1), a domestic
corporation or limited liability company, or a foreign corporation of limited liability
company authorized to transact business in this state and having a business office identical
with the registered office.

A person licensed under this section or section 18B.31 shall annually file with the
commissioner, either at the time of initial licensing or as part of license renewal, the name,
address, telephone number, and e-mail address of the licensee's registered agent.

For licensees under section 18B.31 who are located in the state, the licensee is
the registered agent.

Sec. 36.

Minnesota Statutes 2012, section 18B.316, subdivision 4, is amended to read:

Subd. 4.

Responsibility.

The resident agent is responsible for the acts of a licensed
agricultural pesticide dealer, or of a licensed pesticide dealer under section 18B.31 who
operates from a location or place of business outside the state and who deleted text begin distributes deleted text end new text begin offers
for sale new text end or sells an agricultural pesticide into the state, as well as the acts of the employees
of those licensees.

Sec. 37.

Minnesota Statutes 2012, section 18B.316, subdivision 8, is amended to read:

Subd. 8.

Report of sales and payment to commissioner.

A person who is an
agricultural pesticide dealer, or is a licensed pesticide dealer under section 18B.31, who
deleted text begin distributes deleted text end new text begin offers for sale new text end or sells an agricultural pesticide in or into the state, and a
pesticide registrant pursuant to section 18B.26, subdivision 3, paragraph (d), shall no
later than January 31 of each year report and pay applicable fees on annual gross sales
of agricultural pesticides to the commissioner pursuant to requirements under section
18B.26, subdivision 3, paragraphs (c) and (h).

Sec. 38.

Minnesota Statutes 2012, section 18B.316, subdivision 9, is amended to read:

Subd. 9.

Application.

(a) A person must apply to the commissioner for an
agricultural pesticide dealer license on forms and in a manner approved by the
commissioner.

(b) The applicant must be the person in charge of each location or place of business
from which agricultural pesticides are deleted text begin distributed deleted text end new text begin offered for sale new text end or sold in or into the state.

(c) The commissioner may require that the applicant provide information regarding
the applicant's proposed operations and other information considered pertinent by the
commissioner.

(d) The commissioner may require additional demonstration of licensee qualification
if the licensee has had a license suspended or revoked, or has otherwise had a history of
violations in another state or violations of this chapter.

(e) A licensed agricultural pesticide dealer who changes the dealer's address or place
of business must immediately notify the commissioner of the change.

(f) Beginning January 1, 2011, an application for renewal of an agricultural pesticide
dealer license is complete only when a report and any applicable payment of fees under
subdivision 8 are received by the commissioner.

Sec. 39.

Minnesota Statutes 2012, section 18B.37, subdivision 4, is amended to read:

Subd. 4.

deleted text begin Storage, handling, deleted text end Incident response deleted text begin , and disposal deleted text end plan.

A pesticide
dealer, agricultural pesticide dealer, or a commercial, noncommercial, or structural pest
control deleted text begin applicator or the business that the applicator is employed by deleted text end new text begin business new text end must develop
and maintain deleted text begin a deleted text end new text begin an incident response new text end plan that describes deleted text begin its pesticide storage, handling,
incident response, and disposal practices deleted text end new text begin the actions that will be taken to prevent and
respond to pesticide incidents. The plan must contain the same information as forms
provided by the commissioner new text end . The plan must be kept at a principal business site or location
within this state and must be submitted to the commissioner upon request deleted text begin on forms provided
by the commissioner. The plan must be available for inspection by the commissioner deleted text end .

Sec. 40.

Minnesota Statutes 2012, section 18C.111, subdivision 4, is amended to read:

Subd. 4.

Certification of regulatory compliance.

(a) The commissioner may,
under rules adopted under section 18C.121, subdivision 1, certify a person to offer or
perform a regulatory compliance inspection of any person or site that stores, handles, or
distributes ammonia or anhydrous ammonia fertilizer. new text begin The deadlines established in section
14.125, are extended until June 30, 2014, for rules adopted under this subdivision.
new text end

(b) Pursuant to those rules, a person certified under paragraph (a) may issue a
certification of compliance to an inspected person or site if the certified person documents
in writing full compliance with the provisions of this chapter and rules adopted under
this chapter.

(c) A person or site issued a certification of compliance must provide a copy of the
certification to the commissioner immediately upon request or within 90 days following
certification.

(d) Certifications of compliance are valid for a period of three years. The
commissioner may determine a different time period in the interest of public safety or for
other reasonable cause.

Sec. 41.

Minnesota Statutes 2012, section 18C.430, is amended to read:

18C.430 COMMERCIAL ANIMAL WASTE TECHNICIAN.

Subdivision 1.

Requirement.

(a) deleted text begin Except as provided in paragraph (c), after March
1, 2000, deleted text end A person may not manage or apply animal wastes new text begin to the land new text end for hire deleted text begin without a
valid commercial animal waste technician license. This section does not apply to a person
managing or applying animal waste on land managed by the person's employer. deleted text end new text begin :
new text end

new text begin (1) without a valid commercial animal waste technician applicator license;
new text end

new text begin (2) without a valid commercial animal waste technician site manager license; or
new text end

new text begin (3) as a sole proprietorship, company, partnership, or corporation unless a
commercial animal waste technician company license is held and a commercial animal
waste technical site manager is employed by the entity.
new text end

(b) A person managing or applying animal wastes for hire must have a valid
license identification card when managing or applying animal wastes for hire and must
display it upon demand by an authorized representative of the commissioner or a law
enforcement officer. The commissioner shall prescribe the information required on the
license identification card.

(c) deleted text begin A person who is not a licensed commercial animal waste technician who has had
at least two hours of training or experience in animal waste management may manage
or apply animal waste for hire under the supervision of a commercial animal waste
technician. deleted text end new text begin A commercial animal waste technician applicator must have a minimum of
two hours of certification training in animal waste management and may only manage or
apply animal waste for hire under the supervision of a commercial animal waste technician
site manager. The commissioner shall prescribe the conditions of the supervision and the
form and format required on the certification training.
new text end

new text begin (d) This section does not apply to a person managing or applying animal waste on
land managed by the person's employer.
new text end

Subd. 2.

Responsibility.

A person required to be licensed under this section who
performs animal waste management or application for hire or who employs a person to
perform animal waste management or application for compensation is responsible for
proper management or application of the animal wastes.

Subd. 3.

License.

new text begin (a) new text end A commercial animal waste technician license new text begin , including
applicator, site manager, and company new text end :

(1) is valid for deleted text begin three years deleted text end new text begin one year new text end and expires on December 31 of the deleted text begin third deleted text end year for
which it is issued, unless suspended or revoked before that date;

(2) is not transferable to another person; and

(3) must be prominently displayed to the public in the commercial animal waste
technician's place of business.

new text begin (b) The commercial animal waste technician company license number assigned by
the commissioner must appear on the application equipment when a person manages
or applies animal waste for hire.
new text end

Subd. 4.

Application.

(a) A person must apply to the commissioner for a commercial
animal waste technician license on forms and in the manner required by the commissioner
and must include the application fee. The commissioner shall prescribe and administer
an examination or equivalent measure to determine if the applicant is eligible for the
commercial animal waste technician license new text begin , site manager license, or applicator license new text end .

(b) The commissioner of agriculture, in cooperation with deleted text begin the deleted text end new text begin University of
new text end Minnesota Extension deleted text begin Service deleted text end and appropriate educational institutions, shall establish and
implement a program for training and licensing commercial animal waste technicians.

Subd. 5.

Renewal application.

new text begin (a) new text end A person must apply to the commissioner of
agriculture to renew a commercial animal waste technician license and must include the
application fee. The commissioner may renew a commercial animal waste technician
new text begin applicator or site manager new text end license, subject to reexamination, attendance at workshops
approved by the commissioner, or other requirements imposed by the commissioner to
provide the animal waste technician with information regarding changing technology and
to help ensure a continuing level of competence and ability to manage and apply animal
wastes properly. The applicant may renew a commercial animal waste technician license
within 12 months after expiration of the license without having to meet initial testing
requirements. The commissioner may require additional demonstration of animal waste
technician qualification if a person has had a license suspended or revoked or has had a
history of violations of this section.

new text begin (b) An applicant who meets renewal requirements by reexamination instead
of attending workshops must pay a fee for the reexamination as determined by the
commissioner.
new text end

Subd. 6.

Financial responsibility.

(a) A commercial animal waste technician
license may not be issued unless the applicant furnishes proof of financial responsibility.
The financial responsibility may be demonstrated by (1) proof of net assets equal to or
greater than $50,000, or (2) a performance bond or insurance of the kind and in an amount
determined by the commissioner of agriculture.

(b) The bond or insurance must cover a period of time at least equal to the term of
the applicant's license. The commissioner shall immediately suspend the license of a
person who fails to maintain the required bond or insurance.

(c) An employee of a licensed person is not required to maintain an insurance policy
or bond during the time the employer is maintaining the required insurance or bond.

(d) Applications for reinstatement of a license suspended under paragraph (b) must
be accompanied by proof of satisfaction of judgments previously rendered.

Subd. 7.

Application fee.

new text begin (a) new text end A person initially applying for or renewing
a commercial animal waste technician new text begin applicator new text end license must pay a nonrefundable
deleted text begin application deleted text end fee of deleted text begin $50 and a fee of $10 for each additional identification card requested.
deleted text end new text begin $25. A person initially applying for or renewing a commercial animal waste technician
site manager license must pay a nonrefundable application fee of $50. A person initially
applying for or renewing a commercial animal waste technician company license must
pay a nonrefundable application fee of $100.
new text end

new text begin (b) A license renewal application received after March 1 in the year for which the
license is to be issued is subject to a penalty fee of 50 percent of the application fee. The
penalty fee must be paid before the renewal license may be issued.
new text end

new text begin (c) An application for a duplicate commercial animal waste technician license must
be accompanied by a nonrefundable fee of $10.
new text end

Sec. 42.

Minnesota Statutes 2012, section 18C.433, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

Beginning January 1, 2006, only a commercial
animal waste technician deleted text begin , deleted text end new text begin site manager or commercial animal waste technician applicator
new text end may apply animal waste from a feedlot that:

(1) has a capacity of 300 animal units or more; and

(2) does not have an updated manure management plan that meets the requirements
of Pollution Control Agency rules.

Sec. 43.

Minnesota Statutes 2012, section 31.94, is amended to read:

31.94 COMMISSIONER DUTIES.

(a) In order to promote opportunities for organic agriculture in Minnesota, the
commissioner shall:

(1) survey producers and support services and organizations to determine
information and research needs in the area of organic agriculture practices;

(2) work with the University of Minnesota to demonstrate the on-farm applicability
of organic agriculture practices to conditions in this state;

(3) direct the programs of the department so as to work toward the promotion of
organic agriculture in this state;

(4) inform agencies of how state or federal programs could utilize and support
organic agriculture practices; and

(5) work closely with producers, the University of Minnesota, the Minnesota Trade
Office, and other appropriate organizations to identify opportunities and needs as well
as ensure coordination and avoid duplication of state agency efforts regarding research,
teaching, marketing, and extension work relating to organic agriculture.

(b) By November 15 of each year that ends in a zero or a five, the commissioner,
in conjunction with the task force created in paragraph (c), shall report on the status of
organic agriculture in Minnesota to the legislative policy and finance committees and
divisions with jurisdiction over agriculture. The report must include available data on
organic acreage and production, available data on the sales or market performance of
organic products, and recommendations regarding programs, policies, and research efforts
that will benefit Minnesota's organic agriculture sector.

(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the
University of Minnesota on policies and programs that will improve organic agriculture in
Minnesota, including how available resources can most effectively be used for outreach,
education, research, and technical assistance that meet the needs of the organic agriculture
community. The task force must consist of the following residents of the state:

(1) three new text begin organic new text end farmers deleted text begin using organic agriculture methods deleted text end ;

(2) one wholesaler or distributor of organic products;

(3) one representative of organic certification agencies;

(4) two organic processors;

(5) one representative from University of Minnesota Extension;

(6) one University of Minnesota faculty member;

(7) one representative from a nonprofit organization representing producers;

(8) two public members;

(9) one representative from the United States Department of Agriculture;

(10) one retailer of organic products; and

(11) one organic consumer representative.

The commissioner, in consultation with the director of the Minnesota Agricultural
Experiment Station; the dean and director of University of Minnesota Extension deleted text begin ; deleted text end and the
dean of the College of Food, Agricultural and Natural Resource Sciences new text begin , new text end shall appoint
members to serve deleted text begin staggered two-year deleted text end new text begin three-year new text end terms.

Compensation and removal of members are governed by section 15.059, subdivision
6. The task force must meet at least twice each year and expires on June 30, deleted text begin 2013 deleted text end new text begin 2016 new text end .

(d) For the purposes of expanding, improving, and developing production and
marketing of the organic products of Minnesota agriculture, the commissioner may
receive funds from state and federal sources and spend them, including through grants or
contracts, to assist producers and processors to achieve certification, to conduct education
or marketing activities, to enter into research and development partnerships, or to address
production or marketing obstacles to the growth and well-being of the industry.

(e) The commissioner may facilitate the registration of state organic production
and handling operations including those exempt from organic certification according to
Code of Federal Regulations, title 7, section 205.101, and certification agents operating
within the state.

Sec. 44.

Minnesota Statutes 2012, section 41A.10, subdivision 2, is amended to read:

Subd. 2.

Cellulosic biofuel production goal.

The state cellulosic biofuel production
goal is one-quarter of the total amount necessary for deleted text begin ethanol deleted text end new text begin biofuel new text end use required under
section 239.791, subdivision deleted text begin 1a deleted text end new text begin 1 new text end , by 2015 or when cellulosic biofuel facilities in the state
attain a total annual production level of 60,000,000 gallons, whichever is first.

Sec. 45.

Minnesota Statutes 2012, section 41A.10, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin This section expires January 1, 2015.
new text end

Sec. 46.

Minnesota Statutes 2012, section 41A.105, subdivision 1a, is amended to read:

Subd. 1a.

Definitions.

For the purpose of this section:

new text begin (1) "biobased content" means a chemical, polymer, monomer, or plastic that is not
sold primarily for use as food, feed, or fuel and that has a biobased percentage of at least
51 percent as determined by testing representative samples using American Society for
Testing and Materials specification D6866;
new text end

new text begin (2) "biobased formulated product" means a product that is not sold primarily for use
as food, feed, or fuel and that has a biobased content percentage of at least ten percent
as determined by testing representative samples using American Society for Testing
and Materials specification D6866, or that contains a biobased chemical constituent
that displaces a known hazardous or toxic constituent previously used in the product
formulation;
new text end

deleted text begin (1) deleted text end new text begin (3) new text end "biobutanol facility" means a facility at which biobutanol is produced; and

deleted text begin (2) deleted text end new text begin (4) new text end "biobutanol" means fermentation isobutyl alcohol that is derived from
agricultural products, including potatoes, cereal grains, cheese whey, and sugar beets;
forest products; or other renewable resources, including residue and waste generated
from the production, processing, and marketing of agricultural products, forest products,
and other renewable resources.

Sec. 47.

Minnesota Statutes 2012, section 41A.105, subdivision 3, is amended to read:

Subd. 3.

Duties.

The board shall research and report to the commissioner of
agriculture and to the legislature recommendations as to how the state can invest its
resources to most efficiently achieve energy independence, agricultural and natural
resources sustainability, and rural economic vitality. The board shall:

(1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen,
methanol, biodiesel, and ethanol within Minnesota;

new text begin (2) examine the opportunity for biobased content and biobased formulated product
production at integrated biorefineries or stand alone facilities using agricultural and
forestry feedstocks;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end develop equity grant programs to assist locally owned facilities;

deleted text begin (3) deleted text end new text begin (4) new text end study the proper role of the state in creating financing and investing and
providing incentives;

deleted text begin (4) deleted text end new text begin (5) new text end evaluate how state and federal programs, including the Farm Bill, can best
work together and leverage resources;

deleted text begin (5) deleted text end new text begin (6) new text end work with other entities and committees to develop a clean energy program;
and

deleted text begin (6) deleted text end new text begin (7) new text end report to the legislature before February 1 each year with recommendations
as to appropriations and results of past actions and projects.

Sec. 48.

Minnesota Statutes 2012, section 41A.105, subdivision 5, is amended to read:

Subd. 5.

Expiration.

This section expires June 30, deleted text begin 2014 deleted text end new text begin 2015 new text end .

Sec. 49.

Minnesota Statutes 2012, section 41A.12, subdivision 3, is amended to read:

Subd. 3.

Oversight.

The commissioner, in consultation with the chairs and ranking
minority members of the house of representatives and senate committees with jurisdiction
over agriculture finance, must allocate available funds among eligible uses, develop
competitive eligibility criteria, and award funds on a needs basis. new text begin By February 1 each
year, the commissioner shall report to the legislature on the allocation among eligible uses
and any financial assistance provided under this section.
new text end

Sec. 50.

Minnesota Statutes 2012, section 41A.12, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Grant awards. new text end

new text begin Grant projects may continue for up to three years.
Multiyear projects must be reevaluated by the commissioner before second- and third-year
funding is approved. A project is limited to one grant for its funding.
new text end

Sec. 51.

Minnesota Statutes 2012, section 41B.04, subdivision 9, is amended to read:

Subd. 9.

Restructured loan agreement.

(a) For a deferred restructured loan, all
payments on the primary and secondary principal, all payments of interest on the secondary
principal, and an agreed portion of the interest payable to the eligible agricultural lender
on the primary principal must be deferred to the end of the term of the loan.

(b) Interest on secondary principal must accrue at a below market interest rate.

(c) At the conclusion of the term of the restructured loan, the borrower owes primary
principal, secondary principal, and deferred interest on primary and secondary principal.
However, part of this balloon payment may be forgiven following an appraisal by the
lender and the authority to determine the current market value of the real estate subject to
the mortgage. If the current market value of the land after appraisal is less than the amount
of debt owed by the borrower to the lender and authority on this obligation, that portion of
the obligation that exceeds the current market value of the real property must be forgiven
by the lender and the authority in the following order:

(1) deferred interest on secondary principal;

(2) secondary principal;

(3) deferred interest on primary principal;

(4) primary principal as provided in an agreement between the authority and the
lender; and

(5) accrued but not deferred interest on primary principal.

(d) For an amortized restructured loan, payments must include installments on
primary principal and interest on the primary principal. An amortized restructured loan
must be amortized over a time period and upon terms to be established by the authority by
rule.

(e) A borrower may prepay the restructured loan, with all primary and secondary
principal and interest and deferred interest at any time deleted text begin without prepayment penalty deleted text end .

(f) The authority may not participate in refinancing a restructured loan at the
conclusion of the restructured loan.

Sec. 52.

Minnesota Statutes 2012, section 41D.01, subdivision 4, is amended to read:

Subd. 4.

Expiration.

This section expires on June 30, deleted text begin 2013 deleted text end new text begin 2018 new text end .

Sec. 53.

Minnesota Statutes 2012, section 116J.437, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purpose of this section, the following terms
have the meanings given.

(b) "Green economy" means products, processes, methods, technologies, or services
intended to do one or more of the following:

(1) increase the use of energy from renewable sources, including through achieving
the renewable energy standard established in section 216B.1691;

(2) achieve the statewide energy-savings goal established in section 216B.2401,
including energy savings achieved by the conservation investment program under section
216B.241;

(3) achieve the greenhouse gas emission reduction goals of section 216H.02,
subdivision 1, including through reduction of greenhouse gas emissions, as defined in
section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through,
but not limited to, carbon capture, storage, or sequestration;

(4) monitor, protect, restore, and preserve the quality of surface waters, including
actions to further the purposes of the Clean Water Legacy Act as provided in section
114D.10, subdivision 1;

(5) expand the use of biofuels, including by expanding the feasibility or reducing the
cost of producing biofuels or the types of equipment, machinery, and vehicles that can
use biofuels, including activities to achieve the deleted text begin biofuels 25 by 2025 initiative in sections
41A.10, subdivision 2, and 41A.11 deleted text end new text begin petroleum replacement goal in section 239.7911 new text end ; or

(6) increase the use of green chemistry, as defined in section 116.9401.

For the purpose of clause (3), "green economy" includes strategies that reduce carbon
emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass
transit or otherwise reducing commuting for employees.

Sec. 54.

Minnesota Statutes 2012, section 223.17, is amended by adding a subdivision
to read:

new text begin Subd. 7a. new text end

new text begin Bond requirements; claims. new text end

new text begin For entities licensed under this chapter
and chapter 232, the bond requirements and claims against the bond are governed under
section 232.22, subdivision 6a.
new text end

Sec. 55.

Minnesota Statutes 2012, section 232.22, is amended by adding a subdivision
to read:

new text begin Subd. 6a. new text end

new text begin Bond determinations. new text end

new text begin If a public grain warehouse operator is licensed
under both this chapter and chapter 223, the warehouse shall have its bond determined
by its gross annual grain purchase amount or its annual average grain storage value,
whichever is greater. For those entities licensed under this chapter and chapter 223, the
entire bond shall be available to any claims against the bond for claims filed under this
chapter and chapter 223.
new text end

Sec. 56.

Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Advanced biofuel. new text end

new text begin "Advanced biofuel" has the meaning given in Public
Law 110-140, title 2, subtitle A, section 201.
new text end

Sec. 57.

Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
to read:

new text begin Subd. 5a. new text end

new text begin Biofuel. new text end

new text begin "Biofuel" means a renewable fuel with an approved pathway
under authority of the federal Energy Policy Act of 2005, Public Law 109-58, as amended
by the federal Energy Independence and Security Act of 2007, Public Law 110–140,
and approved for sale by the United States Environmental Protection Agency. The term
"biofuel" includes both advanced and conventional biofuels.
new text end

Sec. 58.

Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
to read:

new text begin Subd. 7a. new text end

new text begin Conventional biofuel. new text end

new text begin "Conventional biofuel" means ethanol derived
from cornstarch, as defined in Public Law 110-140, title 2, subtitle A, section 201.
new text end

Sec. 59.

Minnesota Statutes 2012, section 239.761, subdivision 3, is amended to read:

Subd. 3.

Gasoline.

(a) Gasoline that is not blended with deleted text begin ethanol deleted text end new text begin biofuel new text end must not be
contaminated with water or other impurities and must comply with ASTM specification
D4814-08b. Gasoline that is not blended with deleted text begin ethanol deleted text end new text begin biofuel new text end must also comply with the
volatility requirements in Code of Federal Regulations, title 40, part 80.

(b) After gasoline is sold, transferred, or otherwise removed from a refinery or
terminal, a person responsible for the product:

(1) may blend the gasoline with agriculturally derived ethanol as provided in
subdivision 4;

(2) shall not blend the gasoline with any oxygenate other than deleted text begin denatured,
agriculturally derived ethanol deleted text end new text begin biofuel new text end ;

(3) shall not blend the gasoline with other petroleum products that are not gasoline
or deleted text begin denatured, agriculturally derived ethanol deleted text end new text begin biofuel new text end ;

(4) shall not blend the gasoline with products commonly and commercially known
as casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or
natural gasoline; and

(5) may blend the gasoline with a detergent additive, an antiknock additive, or an
additive designed to replace tetra-ethyl lead, that is registered by the EPA.

Sec. 60.

Minnesota Statutes 2012, section 239.791, subdivision 1, is amended to read:

Subdivision 1.

Minimum deleted text begin ethanol deleted text end new text begin biofuel new text end content required.

(a) Except as provided
in subdivisions 10 to 14, a person responsible for the product shall ensure that all gasoline
sold or offered for sale in Minnesota must contain at least the quantity of deleted text begin ethanol deleted text end new text begin biofuel
new text end required by clause (1) or (2), deleted text begin whichever is greater deleted text end new text begin at the option of the person responsible
for the product new text end :

(1) new text begin the greater of:
new text end

new text begin (i) new text end 10.0 percent deleted text begin denatured ethanol deleted text end new text begin conventional biofuel new text end by volume; or

deleted text begin (2) deleted text end new text begin (ii) new text end the maximum percent of deleted text begin denatured ethanol deleted text end new text begin conventional biofuel new text end by volume
authorized in a waiver granted by the United States Environmental Protection Agency new text begin ; or
new text end

new text begin (2) 10.0 percent of a biofuel, other than a conventional biofuel, by volume authorized
in a waiver granted by the United States Environmental Protection Agency or a biofuel
formulation registered by the United States Environmental Protection Agency under
United States Code, title 42, section 7545 new text end .

(b) For purposes of enforcing the deleted text begin minimum ethanol deleted text end requirement of paragraph (a),
clause (1), new text begin item (i), new text end a deleted text begin gasoline/ethanol deleted text end new text begin gasoline/biofuel new text end blend will be construed to be in
compliance if the deleted text begin ethanol deleted text end new text begin biofuel new text end content, exclusive of denaturants and other permitted
components, comprises not less than 9.2 percent by volume and not more than 10.0 percent
by volume of the blend as determined by an appropriate United States Environmental
Protection Agency or American Society of Testing Materials standard method of analysis
deleted text begin of alcohol/ether content in engine fuels deleted text end .

(c) deleted text begin The provisions of this subdivision are suspended during any period of time that
subdivision 1a, paragraph (a), is in effect. deleted text end new text begin The aggregate amount of biofuel blended
pursuant to this subdivision may be any biofuel; however, conventional biofuel must
comprise no less than the portion specified on and after the specified dates:
new text end

new text begin (1) new text end	new text begin July 1, 2013 new text end	new text begin 90 percent new text end
new text begin (2) new text end	new text begin January 1, 2015 new text end	new text begin 80 percent new text end
new text begin (3) new text end	new text begin January 1, 2017 new text end	new text begin 70 percent new text end
new text begin (4) new text end	new text begin January 1, 2020 new text end	new text begin 60 percent new text end
new text begin (5) new text end	new text begin January 1, 2025 new text end	new text begin no minimum new text end

Sec. 61.

Minnesota Statutes 2012, section 239.791, subdivision 2a, is amended to read:

Subd. 2a.

Federal Clean Air Act waivers; conditions.

(a) Before a waiver granted
by the United States Environmental Protection Agency under deleted text begin section 211(f)(4) of the
Clean Air Act, deleted text end United States Code, title 42, section 7545, deleted text begin subsection (f), paragraph (4),
deleted text end may alter the minimum content level required by subdivision 1, paragraph (a), clause deleted text begin (2),
or subdivision 1a, paragraph (a), clause (2) deleted text end new text begin (1), item (ii) new text end , the waiver must:

(1) apply to all gasoline-powered motor vehicles irrespective of model year; and

(2) allow for special regulatory treatment of Reid vapor pressure under Code of
Federal Regulations, title 40, section 80.27, paragraph (d), for blends of gasoline and
ethanol up to the maximum percent of denatured ethanol by volume authorized under
the waiver.

(b) The minimum deleted text begin ethanol deleted text end new text begin biofuel new text end requirement in subdivision 1, paragraph (a), clause
deleted text begin (2), or subdivision 1a, paragraph (a), clause (2), deleted text end new text begin (1), item (ii), new text end shall, upon the grant of the
federal waiver, be effective the day after the commissioner of commerce publishes notice
in the State Register. In making this determination, the commissioner shall consider the
amount of time required by refiners, retailers, pipeline and distribution terminal companies,
and other fuel suppliers, acting expeditiously, to make the operational and logistical changes
required to supply fuel in compliance with the minimum deleted text begin ethanol deleted text end new text begin biofuel new text end requirement.

Sec. 62.

Minnesota Statutes 2012, section 239.791, subdivision 2b, is amended to read:

Subd. 2b.

Limited liability waiver.

No motor fuel shall be deemed to be a defective
product by virtue of the fact that the motor fuel is formulated or blended pursuant to
the requirements of subdivision 1, paragraph (a), clause deleted text begin (2), or subdivision 1a deleted text end new text begin (1), item
(ii) new text end , under any theory of liability except for simple or willful negligence or fraud. This
subdivision does not preclude an action for negligent, fraudulent, or willful acts. This
subdivision does not affect a person whose liability arises under chapter 115, water
pollution control; 115A, waste management; 115B, environmental response and liability;
115C, leaking underground storage tanks; or 299J, pipeline safety; under public nuisance
law for damage to the environment or the public health; under any other environmental or
public health law; or under any environmental or public health ordinance or program of a
municipality as defined in section 466.01.

Sec. 63.

Minnesota Statutes 2012, section 239.7911, is amended to read:

239.7911 PETROLEUM REPLACEMENT PROMOTION.

Subdivision 1.

Petroleum replacement goal.

The tiered petroleum replacement
goal of the state of Minnesota is that new text begin biofuel comprises at least the specified portion of
total gasoline sold or offered for sale in this state by each specified year new text end :

deleted text begin (1) at least 20 percent of the liquid fuel sold in the state is derived from renewable
sources by December 31, 2015; and
deleted text end

deleted text begin (2) at least 25 percent of the liquid fuel sold in the state is derived from renewable
sources by December 31, 2025.
deleted text end

new text begin (1) new text end	new text begin 2015 new text end	new text begin 14 percent new text end
new text begin (2) new text end	new text begin 2017 new text end	new text begin 18 percent new text end
new text begin (3) new text end	new text begin 2020 new text end	new text begin 25 percent new text end
new text begin (4) new text end	new text begin 2025 new text end	new text begin 30 percent new text end

Subd. 2.

Promotion of renewable liquid fuels.

(a) The commissioner of agriculture,
in consultation with the commissioners of commerce and the Pollution Control Agency,
shall identify and implement activities necessary deleted text begin for the widespread use of renewable
liquid fuels in the state deleted text end new text begin to achieve the goals in subdivision 1 new text end . Beginning November
1, 2005, and continuing through 2015, the commissioners, or their designees, shall
deleted text begin work with deleted text end new text begin convene a task force pursuant to section 15.014 that includes new text end representatives
from the renewable fuels industry, petroleum retailers, refiners, automakers, small
engine manufacturers, and other interested groups deleted text begin , to deleted text end new text begin . The task force shall assist the
commissioners in carrying out the activities in paragraph (b) and eliminating barriers to the
use of greater biofuel blends in this state. The task force must coordinate efforts with the
NextGen Energy Board, the biodiesel task force, and the Renewable Energy Roundtable
and new text end develop annual recommendations for administrative and legislative action.

(b) The activities of the commissioners under this subdivision shall include, but not
be limited to:

(1) developing recommendations for new text begin specific, cost-effective new text end incentives new text begin necessary
to expedite the use of greater biofuel blends in this state including, but not limited to,
incentives new text end for retailers to install equipment necessary deleted text begin for dispensing deleted text end new text begin to dispense new text end renewable
liquid fuels to the public;

(2) expanding the renewable-fuel options available to Minnesota consumers by
obtaining federal approval for the use of deleted text begin E20 and deleted text end additional blends that contain a greater
percentage of deleted text begin ethanol, including but not limited to E30 and E50, as gasoline deleted text end new text begin biofuel new text end ;

(3) developing recommendations deleted text begin for ensuring deleted text end new text begin to ensure new text end that motor vehicles and
small engine equipment have access to an adequate supply of fuel;

(4) working with the owners and operators of large corporate automotive fleets in the
state to increase their use of renewable fuels; deleted text begin and
deleted text end

(5) working to maintain an affordable retail price for liquid fuels new text begin ;
new text end

new text begin (6) facilitating the production and use of advanced biofuels in this state; and
new text end

new text begin (7) developing procedures for reporting the amount and type of biofuel under
subdivision 1 and section 239.791, subdivision 1, paragraph (c) new text end .

new text begin (c) Notwithstanding section 15.014, the task force required under paragraph (a)
expires on December 31, 2015.
new text end

Sec. 64.

Minnesota Statutes 2012, section 296A.01, is amended by adding a
subdivision to read:

new text begin Subd. 8b. new text end

new text begin Biobutanol. new text end

new text begin "Biobutanol" means isobutyl alcohol produced by
fermenting agriculturally generated organic material that is to be blended with gasoline
and meets either:
new text end

new text begin (1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline
for Use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM
for general distribution; or
new text end

new text begin (2) in the absence of an ASTM standard specification, the following list of
requirements:
new text end

new text begin (i) visually free of sediment and suspended matter;
new text end

new text begin (ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient
temperature, whichever is higher;
new text end

new text begin (iii) free of any adulterant or contaminant that can render it unacceptable for its
commonly used applications;
new text end

new text begin (iv) contains not less than 96 volume percent isobutyl alcohol;
new text end

new text begin (v) contains not more than 0.4 volume percent methanol;
new text end

new text begin (vi) contains not more than 1.0 volume percent water as determined by ASTM
standard test method E203 or E1064;
new text end

new text begin (vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined
by ASTM standard test method D1613;
new text end

new text begin (viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters
as determined by ASTM standard test method D381;
new text end

new text begin (ix) sulfur content of not more than 30 parts per million as determined by ASTM
standard test method D2622 or D5453; and
new text end

new text begin (x) contains not more than four parts per million total inorganic sulfate.
new text end

Sec. 65.

Minnesota Statutes 2012, section 583.215, is amended to read:

583.215 EXPIRATION.

Sections 336.9-601, subsections (h) and (i); 550.365; 559.209; 582.039; and 583.20
to 583.32, expire June 30, deleted text begin 2013 deleted text end new text begin 2016 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 66. new text begin WASTE PESTICIDE REPORTING; 2013, 2014, AND 2015.
new text end

new text begin Notwithstanding the recording and reporting requirements of Minnesota Statutes,
section 18B.065, subdivision 2a, paragraph (d), persons are not required to record or
report agricultural or nonagricultural waste pesticide collected after the effective date of
this section in 2013, 2014, and 2015. The commissioner of agriculture shall analyze
existing collection data to identify trends that will inform future collection strategies to
better meet the needs and nature of current waste pesticide streams. By January 15, 2015,
the commissioner shall report analysis, recommendations, and proposed policy changes
to this program to legislative committees and divisions with jurisdiction over agriculture
finance and policy.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 67. new text begin POLLINATOR REPORT REQUIRED.
new text end

new text begin No later than January 15, 2014, the commissioner of agriculture must submit
a pollinator report to the legislative committees and divisions with jurisdiction over
agriculture and natural resources. The commissioner of agriculture must develop the
report in consultation with the commissioners of natural resources and the Pollution
Control Agency, the Board of Water and Soil Resources, and representatives of the
University of Minnesota. The report must include, but is not limited to, the following:
new text end

new text begin (1) a proposal to establish a pollinator bank to preserve pollinator species diversity;
new text end

new text begin (2) a proposal to efficiently and effectively create and enhance pollinator nesting and
foraging habitat in this state including establishment of pollinator reserves or refuges; and
new text end

new text begin (3) the process and criteria the commissioner of agriculture would use to perform a
special review of neonicotinoid pesticides registered by the commissioner for use in this
state currently and in the future.
new text end

Sec. 68. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber Minnesota Statutes, section 18B.01,
subdivision 4a, as subdivision 4b and correct any cross-references.
new text end

Sec. 69. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, sections 18.91, subdivisions 3 and 5; 18B.07, subdivision
6; and 239.791, subdivision 1a, new text end new text begin are repealed.
new text end

ARTICLE 3

ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made
in this article.
new text end

		new text begin 2014 new text end		new text begin 2015 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 87,641,000 new text end	new text begin $ new text end	new text begin 92,690,000 new text end	new text begin $ new text end	new text begin 180,331,000 new text end
new text begin State Government Special Revenue new text end		new text begin 75,000 new text end		new text begin 75,000 new text end		new text begin 150,000 new text end
new text begin Environmental new text end		new text begin 68,836,000 new text end		new text begin 68,982,000 new text end		new text begin 137,818,000 new text end
new text begin Natural Resources new text end		new text begin 89,906,000 new text end		new text begin 89,606,000 new text end		new text begin 179,512,000 new text end
new text begin Game and Fish new text end		new text begin 91,372,000 new text end		new text begin 91,372,000 new text end		new text begin 182,744,000 new text end
new text begin Remediation new text end		new text begin 10,596,000 new text end		new text begin 10,596,000 new text end		new text begin 21,192,000 new text end
new text begin Permanent School new text end		new text begin 200,000 new text end		new text begin 200,000 new text end		new text begin 400,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 348,626,000 new text end	new text begin $ new text end	new text begin 353,521,000 new text end	new text begin $ new text end	new text begin 702,147,000 new text end

Sec. 2. new text begin ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2014" and "2015" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2014, or
June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
year 2015. "The biennium" is fiscal years 2014 and 2015. Appropriations for the fiscal
year ending June 30, 2013, are effective the day following final enactment.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2014 new text end		new text begin 2015 new text end

Sec. 3. new text begin POLLUTION CONTROL AGENCY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 84,171,000 new text end

new text begin $ new text end

new text begin 84,316,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2014 new text end	new text begin 2015 new text end
new text begin General new text end	new text begin 4,764,000 new text end	new text begin 4,763,000 new text end
new text begin State Government Special Revenue new text end	new text begin 75,000 new text end	new text begin 75,000 new text end
new text begin Environmental new text end	new text begin 68,836,000 new text end	new text begin 68,982,000 new text end
new text begin Remediation new text end	new text begin 10,496,000 new text end	new text begin 10,496,000 new text end

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

new text begin Subd. 2. new text end new text begin Water new text end

new text begin 25,453,000 new text end

new text begin 25,454,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 3,737,000 new text end	new text begin 3,737,000 new text end
new text begin State Government Special Revenue new text end	new text begin 75,000 new text end	new text begin 75,000 new text end
new text begin Environmental new text end	new text begin 21,641,000 new text end	new text begin 21,642,000 new text end

new text begin $1,959,000 the first year and $1,959,000
the second year are for grants to delegated
counties to administer the county feedlot
program under Minnesota Statutes, section
116.0711, subdivisions 2 and 3. By January
15, 2016, the commissioner shall submit a
report detailing the results achieved with
this appropriation to the chairs and ranking
minority members at the senate and house
of representatives committees and divisions
with jurisdiction over environment and
natural resources policy and finance. Money
remaining after the first year is available for
the second year.
new text end

new text begin $740,000 the first year and $740,000 the
second year are from the environmental
fund to address the need for continued
increased activity in the areas of new
technology review, technical assistance
for local governments, and enforcement
under Minnesota Statutes, sections 115.55
to 115.58, and to complete the requirements
of Laws 2003, chapter 128, article 1, section
165.
new text end

new text begin $400,000 the first year and $400,000
the second year are for the clean water
partnership program. Any unexpended
balance in the first year does not cancel but
is available in the second year. Priority shall
be given to projects preventing impairments
and degradation of lakes, rivers, streams,
and groundwater according to Minnesota
Statutes, section 114D.20, subdivision 2,
clause (4).
new text end

new text begin $664,000 the first year and $664,000 the
second year are from the environmental
fund for subsurface sewage treatment
system (SSTS) program administration
and community technical assistance and
education, including grants and technical
assistance to communities for water quality
protection. Of this amount, $129,000 each
year is for assistance to counties through
grants for SSTS program administration.
A county receiving a grant from this
appropriation shall submit the results
achieved with the grant to the commissioner
as part of its annual SSTS report. Any
unexpended balance in the first year does not
cancel but is available in the second year.
new text end

new text begin $105,000 the first year and $105,000 the
second year are from the environmental fund
for registration of wastewater laboratories.
new text end

new text begin $913,000 the first year and $913,000 the
second year are from the environmental fund
to continue perfluorochemical biomonitoring
in eastern metropolitan communities, as
recommended by the Environmental Health
Tracking and Biomonitoring Advisory Panel,
and address other environmental health
risks, including air quality. Of this amount,
$812,000 the first year and $812,000 the
second year are for transfer to the Department
of Health.
new text end

new text begin Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered on or
before June 30, 2015, as grants or contracts
for SSTS's, surface water and groundwater
assessments, total maximum daily loads,
storm water, and water quality protection in
this subdivision are available until June 30,
2018.
new text end

new text begin Subd. 3. new text end new text begin Air new text end

new text begin 15,031,000 new text end

new text begin 15,201,000 new text end

new text begin Appropriations by Fund new text end
new text begin Environmental new text end	new text begin 15,031,000 new text end	new text begin 15,201,000 new text end

new text begin $200,000 the first year and $200,000 the
second year are from the environmental fund
for a monitoring program under Minnesota
Statutes, section 116.454.
new text end

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

new text begin $125,000 the first year and $125,000 the
second year are from the environmental fund
for monitoring ambient air for hazardous
pollutants in the metropolitan area.
new text end

new text begin $210,000 the first year and $210,000 the
second year are from the environmental fund
for systematic, localized monitoring efforts
in the state that:
new text end

new text begin (1) sample ambient air for a period of one to
three months at various sites;
new text end

new text begin (2) analyze the samples and compare the data
to the agency's fixed air monitoring sites; and
new text end

new text begin (3) determine whether significant localized
differences exist.
new text end

new text begin The commissioner, when selecting areas to
monitor, shall give priority to areas where low
income, indigenous American Indians, and
communities of color are disproportionately
impacted by pollution from highway traffic,
air traffic, and industrial sources to assist
with efforts to ensure environmental justice
for those areas. For the purposes of this
paragraph, "environmental justice" means the
fair treatment of people of all races, cultures,
and income levels in the development,
adoption, implementation, and enforcement
of environmental laws and policies.
new text end

new text begin $690,000 the first year and $690,000 the
second year are from the environmental
fund for emission reduction activities and
grants to small businesses and other nonpoint
emission reduction efforts. Any unexpended
balance in the first year does not cancel but is
available in the second year.
new text end

new text begin Subd. 4. new text end new text begin Land new text end

new text begin 17,412,000 new text end

new text begin 17,412,000 new text end

new text begin Appropriations by Fund new text end
new text begin Environmental new text end	new text begin 6,916,000 new text end	new text begin 6,916,000 new text end
new text begin Remediation new text end	new text begin 10,496,000 new text end	new text begin 10,496,000 new text end

new text begin All money for environmental response,
compensation, and compliance in the
remediation fund not otherwise appropriated
is appropriated to the commissioners of the
Pollution Control Agency and agriculture
for purposes of Minnesota Statutes, section
115B.20, subdivision 2, clauses (1), (2),
(3), (6), and (7). At the beginning of each
fiscal year, the two commissioners shall
jointly submit an annual spending plan
to the commissioner of management and
budget that maximizes the utilization of
resources and appropriately allocates the
money between the two departments. This
appropriation is available until June 30, 2015.
new text end

new text begin $3,616,000 the first year and $3,616,000 the
second year are from the remediation fund for
purposes of the leaking underground storage
tank program to protect the land. These same
annual amounts are transferred from the
petroleum tank fund to the remediation fund.
new text end

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

new text begin Subd. 5. new text end new text begin Environmental Assistance and Cross-Media new text end

new text begin 26,275,000 new text end

new text begin 26,249,000 new text end

new text begin Appropriations by Fund new text end
new text begin Environmental new text end	new text begin 25,248,000 new text end	new text begin 25,223,000 new text end
new text begin General new text end	new text begin 1,027,000 new text end	new text begin 1,026,000 new text end

new text begin $14,250,000 the first year and $14,250,000
the second year are from the environmental
fund for SCORE block grants to counties.
new text end

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

new text begin $89,000 the first year and $89,000 the
second year are from the environmental fund
for duties related to harmful chemicals in
products under Minnesota Statutes, sections
116.9401 to 116.9407. Of this amount,
$57,000 each year is transferred to the
commissioner of health.
new text end

new text begin $200,000 the first year and $200,000 the
second year are from the environmental
fund for the costs of implementing general
operating permits for feedlots over 1,000
animal units.
new text end

new text begin $312,000 the first year and $312,000 the
second year are from the general fund and
$188,000 the first year and $188,000 the
second year are from the environmental fund
for Environmental Quality Board operations
and support.
new text end

new text begin $75,000 the first year and $50,000 the second
year are from the environmental fund for
transfer to the Office of Administrative
Hearings to establish sanitary districts.
new text end

new text begin $500,000 the first year and $500,000 the
second year are from the general fund for
the Environmental Quality Board to lead
an interagency team to provide technical
assistance regarding the mining, processing,
and transporting of silica sand and develop
the model standards and criteria required
under Minnesota Statutes, section 116C.99.
The agency may transfer a portion of this
appropriation to the commissioners of natural
resources, health, and transportation and to
the Board of Water and Soil Resources for
additional costs of duties related to silica
sand mining in this act.
new text end

new text begin The commissioner shall prepare and submit
a report to the chairs and ranking minority
members of the senate and house of
representatives committees and divisions
with jurisdiction over the environment and
natural resources by January 15, 2014, with
recommendations for a statewide recycling
refund program for beverage containers that
achieves an 80 percent recycling rate. In
preparing the report, the commissioner shall
consult with stakeholders, including retailers,
collectors, recyclers, local governments, and
consumers on options to increase the current
recycling rate. An assessment of the financial
impact of any recommended program shall
be included in the report.
new text end

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

new text begin $315,000 the first year and $315,000 the
second year are from the environmental
fund for the electronic waste program under
Minnesota Statutes, sections 115A.1310 to
115A.1330.
new text end

new text begin Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered on
or before June 30, 2015, as contracts or
grants for surface water and groundwater
assessments; environmental assistance
awarded under Minnesota Statutes, section
115A.0716; technical and research assistance
under Minnesota Statutes, section 115A.152;
technical assistance under Minnesota
Statutes, section 115A.52; and pollution
prevention assistance under Minnesota
Statutes, section 115D.04, are available until
June 30, 2017.
new text end

new text begin Subd. 6. new text end new text begin Remediation Fund new text end

new text begin The commissioner shall transfer up to
$46,000,000 from the environmental fund to
the remediation fund for the purposes of the
remediation fund under Minnesota Statutes,
section 116.155, subdivision 2.
new text end

Sec. 4. new text begin NATURAL RESOURCES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 236,744,000 new text end

new text begin $ new text end

new text begin 241,494,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2014 new text end	new text begin 2015 new text end
new text begin General new text end	new text begin 61,486,000 new text end	new text begin 66,536,000 new text end
new text begin Natural Resources new text end	new text begin 83,586,000 new text end	new text begin 83,286,000 new text end
new text begin Game and Fish new text end	new text begin 91,372,000 new text end	new text begin 91,372,000 new text end
new text begin Remediation new text end	new text begin 100,000 new text end	new text begin 100,000 new text end
new text begin Permanent School new text end	new text begin 200,000 new text end	new text begin 200,000 new text end

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

new text begin Subd. 2. new text end new text begin Land and Mineral Resources Management new text end

new text begin 6,287,000 new text end

new text begin 6,687,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 1,164,000 new text end	new text begin 1,564,000 new text end
new text begin Natural Resources new text end	new text begin 3,472,000 new text end	new text begin 3,472,000 new text end
new text begin Game and Fish new text end	new text begin 1,451,000 new text end	new text begin 1,451,000 new text end
new text begin Permanent School new text end	new text begin 200,000 new text end	new text begin 200,000 new text end

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

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

new text begin $2,696,000 the first year and $2,696,000
the second year are from the minerals
management account in the natural resources
fund for use as provided in Minnesota
Statutes, section 93.2236, paragraph (c),
for mineral resource management, projects
to enhance future mineral income, and
projects to promote new mineral resource
opportunities.
new text end

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

new text begin The appropriations in Laws 2007, chapter 57,
article 1, section 4, subdivision 2, as amended
by Laws 2009, chapter 37, article 1, section
60, and as extended by Laws 2011, First
Special Session chapter 2, article 1, section 4,
subdivision 2, for support of the land records
management system are available until spent.
new text end

new text begin Subd. 3. new text end new text begin Ecological and Water Resources new text end

new text begin 27,182,000 new text end

new text begin 31,582,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 12,117,000 new text end	new text begin 16,817,000 new text end
new text begin Natural Resources new text end	new text begin 11,002,000 new text end	new text begin 10,702,000 new text end
new text begin Game and Fish new text end	new text begin 4,063,000 new text end	new text begin 4,063,000 new text end

new text begin $3,542,000 the first year and $3,242,000 the
second year are from the invasive species
account in the natural resources fund and
$2,906,000 the first year and $3,206,000 the
second year are from the general fund for
management, public awareness, assessment
and monitoring research, and water access
inspection to prevent the spread of invasive
species; management of invasive plants in
public waters; and management of terrestrial
invasive species on state-administered lands.
new text end

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

new text begin $103,000 the first year and $103,000 the
second year are for a grant to the Mississippi
Headwaters Board for up to 50 percent of
the cost of implementing the comprehensive
plan for the upper Mississippi within areas
under the board's jurisdiction.
new text end

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

new text begin $264,000 the first year and $264,000 the
second year are for grants for up to 50
percent of the cost of implementation of
the Red River mediation agreement. The
commissioner shall submit a report to the
chairs of the legislative committees having
primary jurisdiction over environment and
natural resources policy and finance on the
accomplishments achieved with the grants
by January 15, 2015.
new text end

new text begin $1,643,000 the first year and $1,643,000
the second year are from the heritage
enhancement account in the game and
fish fund for only the purposes specified
in Minnesota Statutes, section 297A.94,
paragraph (e), clause (1).
new text end

new text begin $1,223,000 the first year and $1,223,000 the
second year are from the nongame wildlife
management account in the natural resources
fund for the purpose of nongame wildlife
management. Notwithstanding Minnesota
Statutes, section 290.431, $100,000 the first
year and $100,000 the second year may
be used for nongame wildlife information,
education, and promotion.
new text end

new text begin $1,600,000 the first year and $6,000,000 the
second year are from the general fund for the
following activities:
new text end

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

new text begin (2) additional surface water monitoring and
analysis, including installation of monitoring
gauges;
new text end

new text begin (3) additional groundwater analysis to
assist with water appropriation permitting
decisions;
new text end

new text begin (4) additional permit application review
incorporating surface water and groundwater
technical analysis;
new text end

new text begin (5) enhancement of precipitation data and
analysis to improve the use of irrigation;
new text end

new text begin (6) enhanced information technology,
including electronic permitting and
integrated data systems; and
new text end

new text begin (7) increased compliance and monitoring.
new text end

new text begin Of this amount, $600,000 the first year is for
silica sand rulemaking and is available until
spent.
new text end

new text begin The commissioner, in cooperation with the
commissioner of agriculture, shall enforce
compliance with aquatic plant management
requirements regulating the control of
aquatic plants with pesticides and removal of
aquatic plants by mechanical means under
Minnesota Statutes, section 103G.615.
new text end

new text begin Subd. 4. new text end new text begin Forest Management new text end

new text begin 36,860,000 new text end

new text begin 36,810,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 24,450,000 new text end	new text begin 24,400,000 new text end
new text begin Natural Resources new text end	new text begin 11,123,000 new text end	new text begin 11,123,000 new text end
new text begin Game and Fish new text end	new text begin 1,287,000 new text end	new text begin 1,287,000 new text end

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

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

new text begin $11,123,000 the first year and $11,123,000
the second year are from the forest
management investment account in the
natural resources fund for only the purposes
specified in Minnesota Statutes, section
89.039, subdivision 2.
new text end

new text begin $1,287,000 the first year and $1,287,000
the second year are from the heritage
enhancement account in the game and fish
fund to advance ecological classification
systems (ECS) scientific management tools
for forest and invasive species management.
new text end

new text begin $580,000 the first year and $580,000 the
second year are for the Forest Resources
Council for implementation of the
Sustainable Forest Resources Act.
new text end

new text begin $250,000 the first year and $250,000 the
second year are for the FORIST system.
new text end

new text begin $50,000 the first year is for development of
a plan and recommendations, in consultation
with the University of Minnesota,
Department of Forest Resources, on utilizing
the state forest nurseries to: ensure the
long-term availability of ecologically
appropriate and genetically diverse native
forest seed and seedlings to support state
conservation projects and initiatives;
protect the genetic fitness and resilience of
native forest ecosystems; and support tree
improvement research to address evolving
pressures such as invasive species and
climate change. By December 31, 2013,
the commissioner shall submit a report with
the plan and recommendations to the chairs
and ranking minority members of the senate
and house of representatives committees
and divisions with jurisdiction over natural
resources. The report shall address funding
to improve state forest nursery and tree
improvement capabilities. The report shall
also provide updated recommendations from
those contained in the budget and financial
plan required under Laws 2011, First Special
Session chapter 2, article 4, section 30.
new text end

new text begin The general fund base budget for forest
management in fiscal year 2016 and
thereafter is $23,850,000.
new text end

new text begin Subd. 5. new text end new text begin Parks and Trails Management new text end

new text begin 67,802,000 new text end

new text begin 67,802,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2014 new text end	new text begin 2015 new text end
new text begin General new text end	new text begin 19,780,000 new text end	new text begin 19,780,000 new text end
new text begin Natural Resources new text end	new text begin 45,763,000 new text end	new text begin 45,763,000 new text end
new text begin Game and Fish new text end	new text begin 2,259,000 new text end	new text begin 2,259,000 new text end

new text begin $1,075,000 the first year and $1,075,000 the
second year are from the water recreation
account in the natural resources fund for
enhancing public water access facilities
and to prevent the spread of aquatic
invasive species, including inspection and
decontamination programs. Of the amount in
the first year, $300,000 is for construction of
restroom facilities at the public water access
for Crane Lake on Handberg Road and is
available until spent. This appropriation is
not available until the commissioner develops
and implements design standards and best
management practices for public water access
sites that maintain and improve water quality
by avoiding shoreline erosion and runoff.
new text end

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

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

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

new text begin $1,460,000 the first year and $1,460,000 the
second year are from the natural resources
fund for the off-highway vehicle grants-in-aid
program. Of this amount, $1,210,000 each
year is from the all-terrain vehicle account;
$150,000 each year is from the off-highway
motorcycle account; and $100,000 each year
is from the off-road vehicle account. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.
new text end

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

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

new text begin The appropriation in Laws 2009, chapter
37, article 1, section 4, subdivision 5, from
the natural resources fund from the revenue
deposited under Minnesota Statutes, section
297A.94, paragraph (e), clause (4), for local
grants is available until spent.
new text end

new text begin Subd. 6. new text end new text begin Fish and Wildlife Management new text end

new text begin 62,775,000 new text end

new text begin 62,775,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2014 new text end	new text begin 2015 new text end
new text begin Natural Resources new text end	new text begin 1,906,000 new text end	new text begin 1,906,000 new text end
new text begin Game and Fish new text end	new text begin 60,869,000 new text end	new text begin 60,869,000 new text end

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

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

new text begin Subd. 7. new text end new text begin Enforcement new text end

new text begin 35,518,000 new text end

new text begin 35,518,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 3,975,000 new text end	new text begin 3,975,000 new text end
new text begin Natural Resources new text end	new text begin 10,000,000 new text end	new text begin 10,000,000 new text end
new text begin Game and Fish new text end	new text begin 21,443,000 new text end	new text begin 21,443,000 new text end
new text begin Remediation new text end	new text begin 100,000 new text end	new text begin 100,000 new text end

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

new text begin $1,450,000 the first year and $1,450,000
the second year are from the heritage
enhancement account in the game and
fish fund for only the purposes specified
in Minnesota Statutes, section 297A.94,
paragraph (e), clause (1).
new text end

new text begin $250,000 the first year and $250,000 the
second year are for the conservation officer
pre-employment education program. Of this
amount, $30,000 each year is from the water
recreation account, $13,000 each year is from
the snowmobile account, and $20,000 each
year is from the all-terrain vehicle account
in the natural resources fund; and $187,000
each year is from the game and fish fund, of
which $17,000 each year is from the heritage
enhancement account.
new text end

new text begin $1,082,000 the first year and $1,082,000 the
second year are from the water recreation
account in the natural resources fund
for grants to counties for boat and water
safety and to prevent the spread of aquatic
invasive species, including inspection
and decontamination programs. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.
new text end

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

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

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

new text begin $720,000 the first year and $720,000 the
second year are for development and
maintenance of a records management
system capable of providing real time data
with global positioning system information.
Of this amount, $360,000 each year is from
the game and fish fund, and $360,000 each
year is from the invasive species account in
the natural resources fund.
new text end

new text begin Up to $300,000 each year from the invasive
species account is for grants to local units
of government and tribes to prevent the
spread of aquatic invasive species, including
inspection and decontamination programs.
new text end

new text begin Subd. 8. new text end new text begin Operations Support new text end

new text begin 320,000 new text end

new text begin 320,000 new text end

new text begin Appropriations by Fund new text end
new text begin Natural Resources new text end	new text begin 320,000 new text end	new text begin 320,000 new text end

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

new text begin The commissioner may spend up to $300,000
per year from the special revenue fund to
improve data analytics. The commissioner
may bill the divisions of the agency an
appropriate share of costs associated with
this project. Any information technology
development, support, or costs necessary for
this project shall be incorporated into the
agency's service level agreement with and
paid to the Office of Enterprise Technology.
new text end

Sec. 5. new text begin BOARD OF WATER AND SOIL RESOURCES new text end

new text begin $ new text end

new text begin 12,641,000 new text end

new text begin $ new text end

new text begin 12,641,000 new text end

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

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

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

new text begin (1) $260,000 each year is for feedlot water
quality grants for feedlots under 300 animal
units in areas where there are impaired
waters;
new text end

new text begin (2) $1,200,000 each year is for soil and water
conservation district cost-sharing contracts
for erosion control, nutrient and manure
management, vegetative buffers, and water
quality management; and
new text end

new text begin (3) $100,000 each year is for county
cooperative weed management programs and
to restore native plants in selected invasive
species management sites by providing local
native seeds and plants to landowners for
implementation.
new text end

new text begin The board shall submit a report to the
commissioner of the Pollution Control
Agency on the status of subsurface sewage
treatment systems in order to ensure a single,
comprehensive inventory of the systems for
planning purposes.
new text end

new text begin $386,000 the first year and $386,000
the second year are for implementation,
enforcement, and oversight of the Wetland
Conservation Act.
new text end

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

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

new text begin $120,000 the first year and $120,000
the second year are for grants to Area
II Minnesota River Basin Projects for
floodplain management.
new text end

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

new text begin $125,000 the first year and $125,000 the
second year are to implement internal control
policies and provide related oversight and
accountability for agency programs.
new text end

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

Sec. 6. new text begin METROPOLITAN COUNCIL new text end

new text begin $ new text end

new text begin 8,540,000 new text end

new text begin $ new text end

new text begin 8,540,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2014 new text end	new text begin 2015 new text end
new text begin General new text end	new text begin 2,870,000 new text end	new text begin 2,870,000 new text end
new text begin Natural Resources new text end	new text begin 5,670,000 new text end	new text begin 5,670,000 new text end

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

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

Sec. 7. new text begin CONSERVATION CORPS MINNESOTA new text end

new text begin $ new text end

new text begin 945,000 new text end

new text begin $ new text end

new text begin 945,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2014 new text end	new text begin 2015 new text end
new text begin General new text end	new text begin 455,000 new text end	new text begin 455,000 new text end
new text begin Natural Resources new text end	new text begin 490,000 new text end	new text begin 490,000 new text end

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

Sec. 8. new text begin ZOOLOGICAL BOARD new text end

new text begin $ new text end

new text begin 5,585,000 new text end

new text begin $ new text end

new text begin 5,585,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2014 new text end	new text begin 2015 new text end
new text begin General new text end	new text begin 5,425,000 new text end	new text begin 5,425,000 new text end
new text begin Natural Resources new text end	new text begin 160,000 new text end	new text begin 160,000 new text end

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

Sec. 9.

Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended by
Laws 2010, First Special Session chapter 1, article 6, section 6, is amended to read:

Subd. 6. Transfers In

(a) The amounts appropriated from the
agency indirect costs account in the special
revenue fund are reduced by $328,000 in
fiscal year 2010 and $462,000 in fiscal year
2011, and those amounts must be transferred
to the general fund by June 30, 2011. The
appropriation reductions are onetime.

(b) The commissioner of management and
budget shall transfer $48,000,000 in fiscal
year 2011 from the closed landfill investment
fund in Minnesota Statutes, section 115B.421,
to the general fund. The commissioner shall
transfer deleted text begin $12,000,000 deleted text end new text begin $9,900,000 new text end on July 1
deleted text begin in each of the years deleted text end new text begin , new text end 2014, deleted text begin 2015, 2016, and
2017 deleted text end new text begin $12,550,000 in each of the years 2015
and 2016, and $13,000,000 in 2017 new text end from the
general fund to the closed landfill investment
fund. For each transfer to the closed landfill
investment fund, the commissioner shall
determine the total amount of interest and
other earnings that would have accrued to
the fund if the transfers to the general fund
under this paragraph had not been made and
add this amount to the transfer. The amounts
necessary for these transfers are appropriated
from the general fund in the fiscal years
specified for the transfers.

ARTICLE 4

ENVIRONMENT AND NATURAL RESOURCES STATUTORY CHANGES

Section 1.

Minnesota Statutes 2012, section 13.7411, subdivision 4, is amended to read:

Subd. 4.

Waste management.

(a) new text begin Product stewardship program. Trade secret
and sales data information submitted to the Pollution Control Agency under the product
stewardship program is classified under section 115A.1415.
new text end

new text begin (b) new text end Transfer station data. Data received by a county or district from a transfer
station under section 115A.84, subdivision 5, are classified under that section.

deleted text begin (b) deleted text end new text begin (c) new text end Solid waste records. Records of solid waste facilities received, inspected,
or copied by a county pursuant to section 115A.882 are classified pursuant to section
115A.882, subdivision 3.

deleted text begin (c) deleted text end new text begin (d) new text end Customer lists. Customer lists provided to counties or cities by solid waste
collectors are classified under section 115A.93, subdivision 5.

Sec. 2.

Minnesota Statutes 2012, section 84.027, is amended by adding a subdivision
to read:

new text begin Subd. 19. new text end

new text begin Federal law compliance. new text end

new text begin Notwithstanding any law to the contrary,
the commissioner may establish, by written order, policies for the use and operation of
other power-driven mobility devices, as defined under Code of Federal Regulations, title
28, section 35.104, on lands and in facilities administered by the commissioner for the
purposes of implementing the Americans with Disabilities Act, United States Code, title
42, section 12101 et seq. These policies are exempt from the rulemaking provisions of
chapter 14 and section 14.386 does not apply.
new text end

Sec. 3.

Minnesota Statutes 2012, section 84.415, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Existing road right-of-way; fee exemption. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2014.
new text end

Sec. 4.

Minnesota Statutes 2012, section 84.63, is amended to read:

84.63 CONVEYANCE OF INTERESTS IN LANDS TO STATE AND
FEDERAL GOVERNMENTS.

(a) Notwithstanding any existing law to the contrary, the commissioner of natural
resources is hereby authorized on behalf of the state to convey to the United States
or to the state of Minnesota or any of its subdivisions, upon state-owned lands under
the administration of the commissioner of natural resources, permanent or temporary
easements for specified periods or otherwise for trails, highways, roads including
limitation of right of access from the lands to adjacent highways and roads, flowage for
development of fish and game resources, stream protection, flood control, and necessary
appurtenances thereto, such conveyances to be made upon such terms and conditions
including provision for reversion in the event of non-user as the commissioner of natural
resources may determine.

(b) In addition to the fee for the market value of the easement, the commissioner of
natural resources shall assess the applicant the following fees:

(1) an application fee of $2,000 to cover reasonable costs for reviewing the
application and preparing the easement; and

(2) a monitoring fee to cover the projected reasonable costs for monitoring the
construction of the improvement for which the easement was conveyed and preparing
special terms and conditions for the easement. The commissioner must give the applicant
an estimate of the monitoring fee before the applicant submits the fee.

(c) The applicant shall pay these fees to the commissioner of natural resources.
The commissioner shall not issue the easement until the applicant has paid in full the
application fee, the monitoring fee, and the market value payment for the easement.

(d) Upon completion of construction of the improvement for which the easement
was conveyed, the commissioner shall refund the unobligated balance from the monitoring
fee revenue. The commissioner shall not return the application fee, even if the application
is withdrawn or denied.

(e) Money received under paragraph (b) must be deposited in the land management
account in the natural resources fund and is appropriated to the commissioner of natural
resources to cover the reasonable costs incurred for issuing and monitoring easements.

new text begin (f) A county or joint county regional railroad authority is exempt from all fees
specified under this section for trail easements on state-owned land.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2014.
new text end

Sec. 5.

new text begin [84.633] EXCHANGE OF ROAD EASEMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin The commissioner of natural resources, on behalf of
the state, may convey a road easement according to this section for access across state
land under the commissioner's jurisdiction in exchange for a road easement for access to
property owned by the United States, the state of Minnesota or any of its subdivisions, or a
private party. The exercise of the easement across state land must not cause significant
adverse environmental or natural resources management impacts. Exchanges under this
section are limited to existing access corridors.
new text end

new text begin Subd. 2. new text end

new text begin Substantially equal acres. new text end

new text begin The acres covered by the state easement
conveyed by the commissioner must be substantially equal to the acres covered by the
easement being received by the commissioner. For purposes of this section, "substantially
equal" means that the acres do not differ by more than 20 percent. The commissioner's
finding of substantially equal acres is in lieu of an appraisal or other determination of
value of the lands.
new text end

new text begin Subd. 3. new text end

new text begin School trust lands. new text end

new text begin If the commissioner conveys a road easement over
school trust land to a nongovernmental entity, the term of the road easement is limited
to 50 years. The easement exchanged with the state may be limited to 50 years or may
be perpetual.
new text end

new text begin Subd. 4. new text end

new text begin Terms and conditions. new text end

new text begin The commissioner may impose terms and
conditions of use as necessary and appropriate under the circumstances. The state may
accept an easement with similar terms and conditions as the state easement.
new text end

new text begin Subd. 5. new text end

new text begin Survey. new text end

new text begin If the commissioner determines that a survey is required, the
governmental unit or private landowner shall pay to the commissioner a survey fee of not
less than one half of the cost of the survey as determined by the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Application fee. new text end

new text begin When a private landowner or governmental unit, except
the state, presents to the commissioner an offer to exchange road easements, the private
landowner or governmental unit shall pay an application fee as provided under section
84.63 to cover reasonable costs for reviewing the application and preparing the easements.
new text end

new text begin Subd. 7. new text end

new text begin Title. new text end

new text begin If the commissioner determines it is necessary to obtain an opinion
as to the title of the land being encumbered by the easement that will be received by the
commissioner, the governmental unit or private landowner shall submit an abstract of title
or other title information sufficient to determine possession of the land, improvements,
liens, encumbrances, and other matters affecting title.
new text end

new text begin Subd. 8. new text end

new text begin Disposition of fees. new text end

new text begin (a) Any fee paid under subdivision 5 must be credited
to the account from which expenses are or will be paid and the fee is appropriated for the
expenditures in the same manner as other money in the account.
new text end

new text begin (b) Any fee paid under subdivision 6 must be deposited in the land management
account in the natural resources fund and is appropriated to the commissioner to cover the
reasonable costs incurred for preparing and issuing the state road easement and accepting
the road easement from the private landowner or governmental entity.
new text end

Sec. 6.

Minnesota Statutes 2012, section 84.82, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Nontrail use registration. new text end

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

Sec. 7.

Minnesota Statutes 2012, section 84.82, subdivision 3, is amended to read:

Subd. 3.

Fees for registration.

(a) The fee for registration of each snowmobile,
other than those used for an agricultural purpose, as defined in section 84.92, subdivision
1c, deleted text begin or deleted text end those registered by a dealer or manufacturer pursuant to paragraph (b) or (c) new text begin , or
those registered under subdivision 2a new text end shall be as follows: $75 for three years and $10
for a duplicate or transfer.

(b) The total registration fee for all snowmobiles owned by a dealer and operated for
demonstration or testing purposes shall be $50 per year.

(c) The total registration fee for all snowmobiles owned by a manufacturer and
operated for research, testing, experimentation, or demonstration purposes shall be $150
per year. Dealer and manufacturer registrations are not transferable.

(d) The onetime fee for registration of an exempt snowmobile under subdivision
6a is $6.

Sec. 8.

Minnesota Statutes 2012, section 84.8205, subdivision 1, is amended to read:

Subdivision 1.

Sticker required; fee.

(a) A snowmobile that is not registered
in the state new text begin under section 84.82, subdivision 3, paragraph (a), new text end or that is registered by a
manufacturer or dealer under section 84.82, subdivision 3, paragraph (b) or (c), may
not be operated on a state or grant-in-aid snowmobile trail unless a snowmobile state
trail sticker is affixed to the snowmobile.

(b) The commissioner of natural resources shall issue a sticker upon application
and payment of a fee. The fee is:

(1) $35 for a one-year snowmobile state trail sticker purchased by an individual; and

(2) $15 for a one-year snowmobile state trail sticker purchased by a dealer or
manufacturer.

(c) In addition to other penalties prescribed by law, an individual in violation of
this subdivision must purchase an annual state trail sticker for a fee of $70. The sticker
is valid from November 1 through June 30. Fees collected under this section, except for
the issuing fee for licensing agents, shall be deposited in the state treasury and credited
to the snowmobile trails and enforcement account in the natural resources fund and,
except for the electronic licensing system commission established by the commissioner
under section 84.027, subdivision 15, must be used for grants-in-aid, trail maintenance,
grooming, and easement acquisition.

(d) A state trail sticker is not required under this section for:

(1) a snowmobile that is owned and used by the United States, an Indian tribal
government, another state, or a political subdivision thereof that is exempt from
registration under section 84.82, subdivision 6;

(2) a collector snowmobile that is operated as provided in a special permit issued for
the collector snowmobile under section 84.82, subdivision 7a;

(3) a person operating a snowmobile only on the portion of a trail that is owned by
the person or the person's spouse, child, or parent; or

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

Sec. 9.

Minnesota Statutes 2012, section 84.922, is amended by adding a subdivision
to read:

new text begin Subd. 14. new text end

new text begin No registration weekend. new text end

new text begin The commissioner shall designate, by written
order published in the State Register, one weekend each year when, notwithstanding
subdivision 1, an all-terrain vehicle may be operated on state and grant-in-aid all-terrain
vehicle trails without a registration issued under this section. Nonresidents may participate
during the designated weekend without a state trail pass required under section 84.9275.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2012, section 84.9256, subdivision 1, is amended to read:

Subdivision 1.

Prohibitions on youthful operators.

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

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

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

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

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

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

(d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years
old, but less than deleted text begin 16 deleted text end new text begin 18 new text end years old, must:

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 11.

Minnesota Statutes 2012, section 84.928, subdivision 1, is amended to read:

Subdivision 1.

Operation on roads and rights-of-way.

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

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

(c) A person may operate a class 2 all-terrain vehicle new text begin :
new text end

new text begin (1) new text end within the public road right-of-way of a county state-aid or county highway on
the extreme right-hand side of the road and left turns may be made from any part of
the road if it is safe to do so under the prevailing conditions, unless prohibited under
paragraph (d) or (f) deleted text begin . A person may operate a class 2 all-terrain vehicle deleted text end new text begin ;
new text end

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

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

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

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

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

(2) when the all-terrain vehicle is owned by or operated under contract with a publicly
or privately owned utility or pipeline company and used for work on utilities or pipelines.

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

(1) degradation of vegetation on adjacent public property;

(2) siltation of waters of the state;

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

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

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

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

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

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

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

Sec. 12.

new text begin [84.973] POLLINATOR HABITAT PROGRAM.
new text end

new text begin (a) The commissioner shall develop best management practices and habitat
restoration guidelines for pollinator habitat enhancement. Best management practices
and guidelines developed under this section must be used for all habitat enhancement or
restoration of lands under the commissioner's control.
new text end

new text begin (b) Prairie restorations conducted on state lands or with state funds must include
an appropriate diversity of native species selected to provide habitat for pollinators
throughout the growing season.
new text end

Sec. 13.

Minnesota Statutes 2012, section 84D.108, subdivision 2, is amended to read:

Subd. 2.

Permit requirements.

(a) Service providers must complete invasive
species training provided by the commissioner and pass an examination to qualify for a
permit. Service provider permits are valid for three calendar years.

(b) A $50 application and testing fee is required for service provider permit
applications.

(c) Persons working for a permittee must satisfactorily complete aquatic invasive
species-related training provided by the commissioner new text begin , except as provided under
paragraph (d) new text end .

new text begin (d) A person working for and supervised by a permittee is not required to complete
the training under paragraph (c) if the water-related equipment or other water-related
structures remain on the riparian property owned or controlled by the permittee and are
only removed from and placed into the same water of the state.
new text end

Sec. 14.

Minnesota Statutes 2012, section 85.015, subdivision 13, is amended to read:

Subd. 13.

Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton,
Koochiching, and Itasca Counties.

(a)(1) The Taconite Trail shall originate at Ely in St.
Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to
McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in
Itasca County and there terminate;

(2) The C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County
and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand
Marais in Cook County, thence northeasterly to the international boundary in the vicinity
of the north shore of Lake Superior, and there terminate;

(3) The Grand Marais to International Falls Trail shall originate in Grand Marais
in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area,
to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to
Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St.
Louis County to International Falls in Koochiching County, and there terminate;

(4) The Matthew Lourey Trail shall originate in Duluth in St. Louis County and
extend southerly to deleted text begin St. Croix deleted text end new text begin Chengwatana new text end State Forest in Pine County.

(b) The trails shall be developed primarily for riding and hiking.

(c) In addition to the authority granted in subdivision 1, lands and interests in lands
for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring
any land or interest in land by eminent domain the commissioner of administration shall
obtain the approval of the governor. The governor shall consult with the Legislative
Advisory Commission before granting approval. Recommendations of the Legislative
Advisory Commission shall be advisory only. Failure or refusal of the commission to
make a recommendation shall be deemed a negative recommendation.

Sec. 15.

Minnesota Statutes 2012, section 85.052, subdivision 6, is amended to read:

Subd. 6.

State park reservation system.

new text begin (a) new text end The commissioner may, by written
order, develop reasonable reservation policies for campsites and other lodging. These
policies are exempt from rulemaking provisions under chapter 14 and section 14.386
does not apply.

new text begin (b) The revenue collected from the state park reservation fee established under
subdivision 5, including interest earned, shall be deposited in the state park account in the
natural resources fund and is annually appropriated to the commissioner for the cost of
the state park reservation system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from March 1, 2012.
new text end

Sec. 16.

Minnesota Statutes 2012, section 85.053, subdivision 8, is amended to read:

Subd. 8.

Military personnel deleted text begin on leave deleted text end ; exemption.

(a) A one-day permit, under
subdivision 4, shall be issued without a fee for a motor vehicle being used by a person
who is serving in active military service in any branch or unit of the United States armed
forces and who is stationed outside Minnesota, during the period of active service and for
90 days immediately thereafter, if the person presents the person's current military orders
to the park attendant on duty or other designee of the commissioner.

(b) For purposes of this section, "active service" has the meaning given under section
190.05, subdivision 5c, when performed outside Minnesota.

new text begin (c) A permit is not required for a motor vehicle being used by military personnel or
their dependents who have in their possession the annual pass for United States military
and their dependents issued by the federal government for access to federal recreation sites.
new text end

Sec. 17.

Minnesota Statutes 2012, section 85.054, is amended by adding a subdivision
to read:

new text begin Subd. 18. new text end

new text begin La Salle Lake State Recreation Area. new text end

new text begin A state park permit is not required
and a fee may not be charged for motor vehicle entry, use, or parking in La Salle Lake
State Recreation Area unless the occupants of the vehicle enter, use, or park in a developed
campground, overnight, or day-use area.
new text end

Sec. 18.

Minnesota Statutes 2012, section 85.055, subdivision 1, is amended to read:

Subdivision 1.

Fees.

The fee for state park permits for:

(1) an annual use of state parks is $25;

(2) a second or subsequent vehicle state park permit is $18;

(3) a state park permit valid for one day is $5;

(4) a daily vehicle state park permit for groups is $3;

(5) an annual permit for motorcycles is $20;

(6) an employee's state park permit is without charge; and

(7) a state park permit for deleted text begin disabled deleted text end persons new text begin with disabilities new text end under section 85.053,
subdivision 7, clauses (1) deleted text begin and (2) deleted text end new text begin to (3) new text end , is $12.

The fees specified in this subdivision include any sales tax required by state law.

Sec. 19.

Minnesota Statutes 2012, section 85.055, subdivision 2, is amended to read:

Subd. 2.

Fee deposit and appropriation.

The fees collected under this section shall
be deposited in the natural resources fund and credited to the state parks account. Money
in the account, except for the electronic licensing system commission established by the
commissioner under section 84.027, subdivision 15, new text begin and the state park reservation system
fee established by the commissioner under section 85.052, subdivisions 5 and 6, new text end is available
for appropriation to the commissioner to operate and maintain the state park system.

Sec. 20.

Minnesota Statutes 2012, section 85.42, is amended to read:

85.42 USER FEE; VALIDITY.

(a) The fee for an annual cross-country ski pass is $19 for an individual age 16 and
over. The fee for a three-year pass is $54 for an individual age 16 and over. This fee
shall be collected at the time the pass is purchased. Three-year passes are valid for three
years beginning the previous July 1. Annual passes are valid for one year beginning
the previous July 1.

(b) The cost for a daily cross-country skier pass is $5 for an individual age 16 and
over. This fee shall be collected at the time the pass is purchased. The daily pass is valid
only for the date designated on the pass form.

(c) A pass must be signed by the skier across the front of the pass to be valid and
becomes nontransferable on signing.

new text begin (d) The commissioner and agents shall issue a duplicate pass to a person whose pass
is lost or destroyed, using the process established under section 97A.405, subdivision 3,
and rules adopted thereunder. The fee for a duplicate cross-country ski pass is $2.
new text end

Sec. 21.

Minnesota Statutes 2012, section 89.0385, is amended to read:

89.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST
CERTIFICATION.

(a) deleted text begin After each fiscal year, deleted text end The commissioner shall certify the total costs incurred for
forest management, forest improvement, and road improvement on state-managed lands
during deleted text begin that deleted text end new text begin each fiscal new text end year. The commissioner shall distribute forest management receipts
credited to various accounts according to this section.

(b) The amount of the certified costs incurred for forest management activities on
state lands shall be transferred from the account where receipts are deposited to the forest
management investment account in the natural resources fund, except for those costs
certified under section 16A.125. new text begin Transfers may occur quarterly, based on quarterly cost and
revenue reports, throughout the fiscal year, with final certification and reconciliation after
each fiscal year. new text end Transfers in a fiscal year cannot exceed receipts credited to the account.

Sec. 22.

Minnesota Statutes 2012, section 90.01, subdivision 4, is amended to read:

Subd. 4.

Scaler.

"Scaler" means a qualified bonded person designated by the
commissioner to measure new text begin timber and new text end cut forest products.

Sec. 23.

Minnesota Statutes 2012, section 90.01, subdivision 5, is amended to read:

Subd. 5.

State appraiser.

"State appraiser" means an employee of the department
designated by the commissioner to appraise state lands new text begin , which includes, but is not limited
to, timber and other forest resource products, for volume, quality, and value new text end .

Sec. 24.

Minnesota Statutes 2012, section 90.01, subdivision 6, is amended to read:

Subd. 6.

Timber.

"Timber" means trees new text begin , shrubs, or woody plants, new text end that will produce
forest products of value whether standing or down, and including but not limited to logs,
new text begin sawlogs, new text end posts, poles, bolts, pulpwood, cordwood, new text begin fuelwood, woody biomass, new text end lumber new text begin ,
new text end and new text begin woody new text end decorative material.

Sec. 25.

Minnesota Statutes 2012, section 90.01, subdivision 8, is amended to read:

Subd. 8.

Permit holder.

"Permit holder" means the person deleted text begin holding deleted text end new text begin who is the
signatory of new text end a permit to cut timber on state lands.

Sec. 26.

Minnesota Statutes 2012, section 90.01, subdivision 11, is amended to read:

Subd. 11.

Effective permit.

"Effective permit" means a permit for which the
commissioner has on file full or partial deleted text begin surety deleted text end new text begin security new text end as required by section 90.161 deleted text begin , deleted text end new text begin or
new text end 90.162 deleted text begin , 90.163, or 90.173 deleted text end or, in the case of permits issued according to section 90.191 or
90.195, the commissioner has received a down payment equal to the full appraised value.

Sec. 27.

Minnesota Statutes 2012, section 90.031, subdivision 4, is amended to read:

Subd. 4.

Timber rules.

The Executive Council may formulate and establish, from
time to time, rules it deems advisable for the transaction of timber business of the state,
including approval of the sale of timber on any tract in a lot exceeding deleted text begin 6,000 deleted text end new text begin 12,000 new text end cords
in volume when the sale is in the best interests of the state, and may abrogate, modify,
or suspend rules at its pleasure.

Sec. 28.

Minnesota Statutes 2012, section 90.041, subdivision 2, is amended to read:

Subd. 2.

Trespass on state lands.

The commissioner may compromise and settle,
with deleted text begin the approval of deleted text end new text begin notification to new text end the attorney general, upon terms the commissioner
deems just, any claim of the state for casual and involuntary trespass upon state lands or
timber; provided that no claim shall be settled for less than the full value of all timber
or other materials taken in casual trespass or the full amount of all actual damage or
loss suffered by the state as a result. new text begin Upon request, new text end the commissioner shall advise the
Executive Council of any information acquired by the commissioner concerning any
trespass on state lands, giving all details and names of witnesses and all compromises and
settlements made under this subdivision.

Sec. 29.

Minnesota Statutes 2012, section 90.041, subdivision 5, is amended to read:

Subd. 5.

Forest improvement contracts.

The commissioner may contract as part
of the timber sale with the purchaser of state timber at either informal or auction sale
for deleted text begin the following deleted text end forest improvement work to be done on the land included within the
sale area deleted text begin : deleted text end new text begin . Forest improvement work may include activities relating to new text end preparation of
the site for seeding or planting of seedlings or trees, seeding or planting of seedlings or
trees, and other activities deleted text begin relating deleted text end new text begin related new text end to forest regeneration new text begin or deemed necessary by
the commissioner to accomplish forest management objectives, including those related
to water quality protection, trail development, and wildlife habitat enhancement new text end . A
contract issued under this subdivision is not subject to the competitive bidding provisions
of chapter 16C and is exempt from the contract approval provisions of section 16C.05,
subdivision 2. new text begin The bid value received in the sale of the timber and the contract bid
cost of the improvement work may be combined and the total value may be considered
by the commissioner in awarding forest improvement contracts under this section.
The commissioner may refuse to accept any and all bids received and cancel a forest
improvement contract sale for good and sufficient reasons.
new text end

Sec. 30.

Minnesota Statutes 2012, section 90.041, subdivision 6, is amended to read:

Subd. 6.

Sale of damaged timber.

The commissioner may sell at public auction
timber that has been damaged by fire, windstorm, flood, new text begin insect, disease, new text end or other natural
cause on notice that the commissioner considers reasonable when there is a high risk that
the salvage value of the timber would be lost.

Sec. 31.

Minnesota Statutes 2012, section 90.041, subdivision 9, is amended to read:

Subd. 9.

Reoffering unsold timber.

deleted text begin To maintain and enhance forest ecosystems on
state forest lands, deleted text end The commissioner may reoffer timber tracts remaining unsold under the
provisions of section 90.101 below appraised value at public auction with the required
30-day notice under section 90.101, subdivision 2.

Sec. 32.

Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Fees. new text end

new text begin (a) The commissioner may establish a fee schedule that covers the
commissioner's cost of issuing, administering, and processing various permits, permit
modifications, transfers, assignments, amendments, and other transactions necessary to the
administration of activities under this chapter.
new text end

new text begin (b) A fee established under this subdivision is not subject to the rulemaking
provisions of chapter 14 and section 14.386 does not apply. The commissioner may
establish fees under this subdivision notwithstanding section 16A.1283.
new text end

Sec. 33.

Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Debarment. new text end

new text begin The commissioner may debar a permit holder if the holder
is convicted in Minnesota at the gross misdemeanor or felony level of criminal willful
trespass, theft, fraud, or antitrust violation involving state, federal, county, or privately
owned timber in Minnesota or convicted in any other state involving similar offenses and
penalties for timber owned in that state. The commissioner shall cancel and repossess the
permit directly involved in the prosecution of the crime. The commissioner shall cancel
and repossess all other state timber permits held by the permit holder after taking from
all security deposits money to which the state is entitled. The commissioner shall return
the remainder of the security deposits, if any, to the permit holder. The debarred permit
holder is prohibited from bidding, possessing, or being employed on any state timber
permit during the period of debarment. The period of debarment is not less than one year
or greater than three years. The duration of the debarment is based on the severity of the
violation, past history of compliance with timber permits, and the amount of loss incurred
by the state arising from violations of timber permits.
new text end

Sec. 34.

Minnesota Statutes 2012, section 90.045, is amended to read:

90.045 APPRAISAL STANDARDS.

By July 1, 1983, the commissioner shall establish specific timber appraisal standards
according to which all timber appraisals will be conducted under this chapter. The
standards shall include a specification of the maximum allowable appraisal sampling error,
deleted text begin and deleted text end new text begin including new text end the procedures for tree defect allowance, tract area estimation, product
volume estimation, and product value determination. The timber appraisal standards shall
be included in each edition of the timber sales manual published by the commissioner. In
addition to the duties pursuant to section 90.061, every state appraiser shall work within
the guidelines of the timber appraisal standards. The standards shall not be subject to
the rulemaking provisions of chapter 14.

Sec. 35.

Minnesota Statutes 2012, section 90.061, subdivision 8, is amended to read:

Subd. 8.

Appraiser authority; form of documents.

State appraisers are
empowered, with the consent of the commissioner, to perform any scaling, and generally
to supervise the cutting and removal of timber new text begin and forest products new text end on or from state lands
so far as may be reasonably necessary to insure compliance with the terms of the permits
or other contracts governing the same and protect the state from loss.

The form of appraisal reports, records, and notes to be kept by state appraisers
shall be as the commissioner prescribes.

Sec. 36.

Minnesota Statutes 2012, section 90.101, subdivision 1, is amended to read:

Subdivision 1.

Sale requirements.

The commissioner may sell the timber on any
tract of state land and may determine the number of sections or fractional sections of land
to be included in the permit area covered by any one permit issued to the purchaser of
timber on state lands, or in any one contract or other instrument relating thereto. No
timber shall be sold, except (1) to the highest responsible bidder at public auction, or
(2) if unsold at public auction new text begin , new text end the commissioner may offer the timber for private sale
for a period of no more than deleted text begin six months deleted text end new text begin one year new text end after the public auction to any deleted text begin person
deleted text end new text begin responsible bidder new text end who pays the appraised value for the timber. The minimum price shall
be the appraised value as fixed by the report of the state appraiser. Sales may include tracts
in more than one contiguous county or forestry administrative area and shall be held either
in the county or forestry administrative area in which the tract is located or in an adjacent
county or forestry administrative area that is nearest the tract offered for sale or that is
most accessible to potential bidders. In adjoining counties or forestry administrative areas,
sales may not be held less than two hours apart.

Sec. 37.

Minnesota Statutes 2012, section 90.121, is amended to read:

90.121 INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000
CORDS.

(a) The commissioner may sell the timber on any tract of state land in lots not
exceeding 3,000 cords in volume, in the same manner as timber sold at public auction under
section 90.101, and related laws, subject to the following special exceptions and limitations:

(1) the commissioner shall offer all tracts authorized for sale by this section
separately from the sale of tracts of state timber made pursuant to section 90.101;

(2) no bidder may be awarded more than 25 percent of the total tracts offered at the
first round of bidding unless fewer than four tracts are offered, in which case not more than
one tract shall be awarded to one bidder. Any tract not sold at public auction may be offered
for private sale as authorized by section 90.101, subdivision 1, new text begin 30 days after the auction new text end to
deleted text begin persons deleted text end new text begin responsible bidders new text end eligible under this section at the appraised value; and

(3) no sale may be made to a deleted text begin person deleted text end new text begin responsible bidder new text end having more than 30
employees. For the purposes of this clause, "employee" means an individual working in
the timber or wood products industry for salary or wages on a full-time or part-time basis.

(b) The auction sale procedure set forth in this section constitutes an additional
alternative timber sale procedure available to the commissioner and is not intended to
replace other authority possessed by the commissioner to sell timber in lots of 3,000
cords or less.

(c) Another bidder or the commissioner may request that the number of employees a
bidder has pursuant to paragraph (a), clause (3), be confirmed new text begin by signed affidavit new text end if there is
evidence that the bidder may be ineligible due to exceeding the employee threshold. The
commissioner shall request information from the commissioners of labor and industry and
employment and economic development including the premiums paid by the bidder in
question for workers' compensation insurance coverage for all employees of the bidder.
The commissioner shall review the information submitted by the commissioners of labor
and industry and employment and economic development and make a determination based
on that information as to whether the bidder is eligible. A bidder is considered eligible and
may participate in intermediate auctions until determined ineligible under this paragraph.

Sec. 38.

Minnesota Statutes 2012, section 90.145, is amended to read:

90.145 PURCHASER QUALIFICATIONS deleted text begin AND deleted text end new text begin , new text end REGISTRATION new text begin , AND
REQUIREMENTS new text end .

Subdivision 1.

Purchaser deleted text begin qualifications deleted text end new text begin requirements new text end .

(a) In addition to any other
requirements imposed by this chapter, the purchaser of a state timber permit issued under
section 90.151 must meet the requirements in paragraphs (b) to deleted text begin (d) deleted text end new text begin (e) new text end .

(b) The purchaser deleted text begin and deleted text end new text begin or new text end the purchaser's agents, employees, subcontractors, and
assigns new text begin conducting logging operations on the timber permit new text end must comply with general
industry safety standards for logging adopted by the commissioner of labor and industry
under chapter 182. The commissioner of natural resources deleted text begin shall deleted text end new text begin may new text end require a purchaser
to provide proof of compliance with the general industry safety standards.

(c) The purchaser deleted text begin and deleted text end new text begin or new text end the purchaser's agents, subcontractors, and assigns
new text begin conducting logging operations on the timber permit new text end must comply with the mandatory
insurance requirements of chapter 176. The commissioner deleted text begin shall deleted text end new text begin may new text end require a purchaser
to provide a copy of the proof of insurance required by section 176.130 before the start of
harvesting operations on any permit.

(d) Before the start of harvesting operations on any permit, the purchaser must certify
that a foreperson or other designated employee who has a current certificate of completion new text begin ,
new text end new text begin which includes instruction in site-level forest management guidelines or best management
practices, new text end from the Minnesota Logger Education Program (MLEP), the Wisconsin Forest
Industry Safety and Training Alliance (FISTA), or any similar new text begin continuous education
new text end program acceptable to the commissioner, is supervising active logging operations.

new text begin (e) The purchaser and the purchaser's agents, employees, subcontractors, and assigns
who will be involved with logging or scaling state timber must be in compliance with
this chapter.
new text end

Subd. 2.

Purchaser deleted text begin preregistration deleted text end new text begin registration new text end .

To facilitate the sale of permits
issued under section 90.151, the commissioner may establish a deleted text begin purchaser preregistration
deleted text end new text begin registration new text end system new text begin to verify the qualifications of a person as a responsible bidder to
purchase a timber permit new text end . Any system implemented by the commissioner shall be limited
in scope to only that information that is required for the efficient administration of the
purchaser qualification deleted text begin provisions deleted text end new text begin requirements new text end of this chapter deleted text begin and shall conform with the
requirements of chapter 13. deleted text end new text begin The registration system established under this subdivision is
not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.
new text end

Sec. 39.

Minnesota Statutes 2012, section 90.151, subdivision 1, is amended to read:

Subdivision 1.

Issuance; expiration.

(a) Following receipt of the down payment
for state timber required under section 90.14 or 90.191, the commissioner shall issue a
numbered permit to the purchaser, in a form approved by the attorney general, by the
terms of which the purchaser shall be authorized to enter upon the land, and to cut and
remove the timber therein described as designated for cutting in the report of the state
appraiser, according to the provisions of this chapter. The permit shall be correctly
dated and executed by the commissioner and signed by the purchaser. If a permit is not
signed by the purchaser within deleted text begin 60 deleted text end new text begin 45 new text end days from the date of purchase, the permit cancels
and the down payment for timber required under section 90.14 forfeits to the state. The
commissioner may grant an additional period for the purchaser to sign the permit, not to
exceed deleted text begin five deleted text end new text begin ten new text end business days, provided the purchaser pays a deleted text begin $125 deleted text end new text begin $200 new text end penalty fee.

(b) The permit shall expire no later than five years after the date of sale as the
commissioner shall specify or as specified under section 90.191, and the timber shall
be cut new text begin and removed new text end within the time specified therein. deleted text begin All cut timber, equipment, and
buildings not removed from the land within 90 days after expiration of the permit shall
become the property of the state. deleted text end new text begin If additional time is needed, the permit holder must
request, prior to the expiration date, and may be granted, for good and sufficient reasons,
up to 90 additional days for the completion of skidding, hauling, and removing all
equipment and buildings. All cut timber, equipment, and buildings not removed from the
land after expiration of the permit becomes the property of the state.
new text end

(c) The commissioner may grant an additional period of time not to exceed deleted text begin 120 deleted text end new text begin 240
new text end days for the removal of cut timber, equipment, and buildings upon receipt of deleted text begin such deleted text end new text begin a written
new text end request by the permit holder for good and sufficient reasons. deleted text begin The commissioner may grant
a second period of time not to exceed 120 days for the removal of cut timber, equipment,
and buildings upon receipt of a request by the permit holder for hardship reasons only.
deleted text end new text begin The permit holder may combine in the written request under this paragraph the request
for additional time under paragraph (b).
new text end

Sec. 40.

Minnesota Statutes 2012, section 90.151, subdivision 2, is amended to read:

Subd. 2.

Permit requirements.

The permit shall state the amount of timber
estimated for cutting on the land, the estimated value thereof, and the price at which it is
sold new text begin in units of new text end per thousand feet, per cord, per piece, new text begin per ton, new text end or by whatever description
sold, and shall specify that all landings of cut products shall be legibly marked with the
assigned permit number. The permit shall provide for the continuous identification
new text begin and control new text end of the cut timber from the time of cutting until delivery to the consumer.
The permit shall provide that failure to continuously identify the timber as specified in
the permit constitutes trespass.

Sec. 41.

Minnesota Statutes 2012, section 90.151, subdivision 3, is amended to read:

Subd. 3.

Security provisions.

The permit shall contain such provisions as may be
necessary to secure to the state the title of all timber cut thereunder wherever found until
full payment therefor and until all provisions of the permit have been fully complied
with. The permit shall provide that from the date deleted text begin the same becomes effective deleted text end new text begin cutting
commences new text end until the expiration deleted text begin thereof deleted text end new text begin of the permit new text end , including all extensions, the
purchaser and successors in interest shall be liable to the state for the full permit price of
all timber covered thereby, notwithstanding any subsequent damage or injury thereto or
trespass thereon or theft thereof, and without prejudice to the right of the state to pursue
such timber and recover the value thereof anywhere prior to the payment therefor in full to
the state. new text begin If an effective permit is forfeited prior to any cutting activity, the purchaser is
liable to the state for a sum equal to the down payment and bid guarantee. new text end Upon recovery
from any person other than the permit holder, the permit holder shall be deemed released
to the extent of the net amount, after deducting all expenses of collecting same, recovered
by the state from such other person.

Sec. 42.

Minnesota Statutes 2012, section 90.151, subdivision 4, is amended to read:

Subd. 4.

Permit terms.

new text begin Once a permit becomes effective and cutting commences,
the permit holder is liable to the state for the permit price for all timber required to be cut,
including timber not cut. new text end The permit shall provide that all timber sold or designated for
cutting shall be cut deleted text begin without deleted text end new text begin in such a manner so as not to cause new text end damage to other timber;
that the permit holder shall remove all timber authorized new text begin and designated new text end to be cut under
the permit; that timber sold by deleted text begin board deleted text end measure new text begin identified in the permit, new text end but later determined
by the commissioner not to be convertible into deleted text begin board deleted text end new text begin the permit's new text end measure new text begin , new text end shall be paid
for by the piece or cord or other unit of measure according to the size, species, or value, as
may be determined by the commissioner; new text begin and new text end that all timber products, except as specified
by the commissioner, shall be scaled and the final settlement for the timber cut shall be
made on this scale deleted text begin ; and that the permit holder shall pay to the state the permit price for
all timber authorized to be cut, including timber not cut deleted text end .

Sec. 43.

Minnesota Statutes 2012, section 90.151, subdivision 6, is amended to read:

Subd. 6.

Notice and approval required.

The permit shall provide that the permit
holder shall not start cutting any state timber nor clear deleted text begin building sites deleted text end new text begin landings new text end nor logging
roads until the commissioner has been notified and has given prior approval to such
cutting operations. Approval shall not be granted until the permit holder has completed
a presale conference with the state appraiser designated to supervise the cutting. The
permit holder shall also give prior notice whenever permit operations are to be temporarily
halted, whenever permit operations are to be resumed, and when permit operations are to
be completed.

Sec. 44.

Minnesota Statutes 2012, section 90.151, subdivision 7, is amended to read:

Subd. 7.

Liability for timber cut in trespass.

The permit shall provide that the
permit holder shall pay the permit price value for any timber sold which is negligently
destroyed or damaged by the permit holder in cutting or removing other timber sold. If the
permit holder shall cut or remove or negligently destroy or damage any timber upon the
land described, not sold under the permit, except such timber as it may be necessary to cut
and remove in the construction of necessary logging roads and landings approved as to
location and route by the commissioner, such timber shall be deemed to have been cut in
trespass. The permit holder shall be liable for any such timber and recourse may be had
upon the deleted text begin bond deleted text end new text begin security deposit new text end .

Sec. 45.

Minnesota Statutes 2012, section 90.151, subdivision 8, is amended to read:

Subd. 8.

Suspension; cancellation.

The permit shall provide that the commissioner
shall have the power to order suspension of all operations under the permit when deleted text begin in the
commissioner's judgment deleted text end the conditions thereof have not been complied with and any
timber cut or removed during such suspension shall be deemed to have been cut in trespass;
that the commissioner may cancel the permit at any time deleted text begin when in the commissioner's
judgment the conditions thereof have not been complied with deleted text end new text begin due to a breach of the permit
conditions new text end and such cancellation shall constitute repossession of the timber by the state;
that the permit holder shall remove equipment and buildings from such land within 90 days
after such cancellation; that, if the purchaser at any time fails to pay any obligations to the
state under any other permits, any or all permits may be canceled; and that any timber new text begin cut
or new text end removed in violation of the terms of the permit or of any law shall constitute trespass.

Sec. 46.

Minnesota Statutes 2012, section 90.151, subdivision 9, is amended to read:

Subd. 9.

Slashings disposal.

The permit shall provide that the permit holder shall
deleted text begin burn or otherwise deleted text end dispose of new text begin or treat new text end all slashings or other refuse resulting from cutting
operations new text begin , as specified in the permit, new text end in the manner now or hereafter provided by law.

Sec. 47.

Minnesota Statutes 2012, section 90.161, is amended to read:

90.161 deleted text begin SURETY BONDS FOR AUCTION deleted text end new text begin SECURITY DEPOSITS
REQUIRED FOR EFFECTIVE new text end TIMBER PERMITS.

Subdivision 1.

deleted text begin Bond deleted text end new text begin Security deposit new text end required.

new text begin (a) new text end Except as otherwise provided
by law, the purchaser of any state timber, before any timber permit becomes effective for
any purpose, shall give deleted text begin a deleted text end good and valid deleted text begin bond deleted text end new text begin security in the form of cash; a certified
check; a cashier's check; a postal, bank, or express money order; a corporate surety bond;
or an irrevocable bank letter of credit new text end to the state of Minnesota equal to the value of all
timber covered or to be covered by the permit, as shown by the sale price bid and the
appraisal report as to quantity, less the amount of any payments pursuant to deleted text begin sections
deleted text end new text begin section new text end 90.14 deleted text begin and 90.163 deleted text end .

new text begin (b) new text end The deleted text begin bond deleted text end new text begin security deposit new text end shall be conditioned upon the faithful performance
by the purchaser and successors in interest of all terms and conditions of the permit and
all requirements of law in respect to timber sales. The deleted text begin bond deleted text end new text begin security deposit new text end shall be
approved in writing by the commissioner and filed for record in the commissioner's office.

new text begin (c) new text end deleted text begin In the alternative to cash and bond requirements, but upon the same conditions,
deleted text end A purchaser may post bond for 100 percent of the purchase price and request refund of the
amount of any payments pursuant to deleted text begin sections deleted text end new text begin section new text end 90.14 deleted text begin and 90.163 deleted text end . The commissioner
may credit the refund to any other permit held by the same permit holder if the permit is
delinquent as provided in section 90.181, subdivision 2, or may credit the refund to any
other permit to which the permit holder requests that it be credited.

new text begin (d) In the event of a default, the commissioner may take from the deposit the sum of
money to which the state is entitled. The commissioner shall return the remainder of the
deposit, if any, to the person making the deposit. When cash is deposited as security, it
shall be applied to the amount due when a statement is prepared and transmitted to the
permit holder according to section 90.181. Any balance due to the state shall be shown on
the statement and shall be paid as provided in section 90.181. Any amount of the deposit
in excess of the amount determined to be due according to section 90.181 shall be returned
to the permit holder when a final statement is transmitted under section 90.181. All or
part of a cash deposit may be withheld from application to an amount due on a nonfinal
statement if it appears that the total amount due on the permit will exceed the bid price.
new text end

new text begin (e) If an irrevocable bank letter of credit is provided as security under paragraph
(a), at the written request of the permittee, the commissioner shall annually allow the
amount of the bank letter of credit to be reduced by an amount proportionate to the value
of timber that has been harvested and for which the state has received payment under the
timber permit. The remaining amount of the bank letter of credit after a reduction under
this paragraph must not be less than the value of the timber remaining to be harvested
under the timber permit.
new text end

new text begin (f) If cash; a certified check; a cashier's check; a personal check; or a postal, bank, or
express money order is provided as security under paragraph (a) and no cutting of state
timber has taken place on the permit, the commissioner may credit the security provided,
less any deposit required under section 90.14, to any other permit to which the permit
holder requests in writing that it be credited.
new text end

Subd. 2.

Failure to deleted text begin bond deleted text end new text begin provide security deposit new text end .

If deleted text begin bond deleted text end new text begin the security deposit new text end is
not furnished, no harvesting may occur and deleted text begin the down payment for timber deleted text end new text begin 15 percent of the
permit's purchase price new text end shall forfeit to the state new text begin when the permit expires new text end .

Subd. 3.

Subrogation.

deleted text begin In case of default deleted text end new text begin When security is provided by surety
bond and the permit holder defaults new text end in payment deleted text begin by the permit holder deleted text end new text begin , new text end the surety upon the
bond shall make payment in full to the state of all sums of money due under such permit;
and thereupon such surety shall be deemed immediately subrogated to all the rights of
the state in the timber so paid for; and such subrogated party may pursue the timber and
recover therefor, or have any other appropriate relief in relation thereto which the state
might or could have had if such surety had not made such payment. No assignment or
other writing on the part of the state shall be necessary to make such subrogation effective,
but the certificate signed by and bearing the official seal of the commissioner, showing the
amount of such timber, the lands from which it was cut or upon which it stood, and the
amount paid therefor, shall be prima facie evidence of such facts.

Subd. 4.

Change of security.

Prior to any deleted text begin harvest deleted text end new text begin cutting new text end activity, or activities
incidental to the preparation for harvest, a purchaser having posted a deleted text begin bond deleted text end new text begin security deposit
new text end for 100 percent of the purchase price of a sale may request the release of the deleted text begin bond deleted text end new text begin security
new text end and the commissioner shall grant the release deleted text begin upon cash payment to the commissioner of
15 percent of the appraised value of the sale, plus eight percent interest on the appraised
value of the sale from the date of purchase to the date of release deleted text end new text begin while retaining, or upon
repayment of, the permit's down payment and bid guarantee deposit requirement new text end .

new text begin Subd. 5. new text end

new text begin Return of security. new text end

new text begin Any security required under this section shall be
returned to the purchaser within 60 days after the final scale.
new text end

Sec. 48.

Minnesota Statutes 2012, section 90.162, is amended to read:

90.162 deleted text begin ALTERNATIVE TO BOND OR DEPOSIT REQUIREMENTS
deleted text end new text begin SECURING TIMBER PERMITS WITH CUTTING BLOCKS new text end .

In lieu of the deleted text begin bond or cash deleted text end new text begin security new text end deposit equal to the value of all timber covered
by the permit required by section 90.161 deleted text begin or 90.173 deleted text end , a purchaser of state timber may elect
in writing on a form prescribed by the attorney general to give good and valid surety to the
state of Minnesota equal to the purchase price for any designated cutting block identified
on the permit before the date the purchaser enters upon the land to begin harvesting the
timber on the designated cutting block.

Sec. 49.

new text begin [90.164] TIMBER PERMIT DEVELOPMENT OPTION.
new text end

new text begin With the completion of the presale conference requirement under section 90.151,
subdivision 6, a permit holder may access the permit area in advance of the permit being
fully secured as required by section 90.161, for the express purpose of clearing approved
landings and logging roads. No cutting of state timber except that incidental to the clearing
of approved landings and logging roads is allowed under this section.
new text end

Sec. 50.

Minnesota Statutes 2012, section 90.171, is amended to read:

90.171 ASSIGNMENT OF AUCTION TIMBER PERMITS.

Any permit sold at public auction may be assigned upon written approval of the
commissioner. The assignment of any permit shall be signed and acknowledged by the
permit holder. The commissioner shall not approve any assignment until the assignee has
new text begin been determined to meet the qualifications of a responsible bidder and has new text end given to the state
a deleted text begin bond deleted text end new text begin security deposit new text end which shall be substantially in the form of, and shall be deemed
of the same effect as, the deleted text begin bond deleted text end new text begin security deposit new text end required of the original purchaser. The
commissioner may accept deleted text begin the deleted text end new text begin an new text end agreement of the assignee and any corporate surety upon
deleted text begin such deleted text end new text begin an new text end original bond, substituting the assignee in the place of deleted text begin such deleted text end new text begin the new text end original purchaser
and continuing deleted text begin such deleted text end new text begin the new text end original bond in full force and effect, as to the assignee. Thereupon
but not otherwise the permit holder making the assignment shall be released from all
liability arising or accruing from actions taken after the assignment became effective.

Sec. 51.

Minnesota Statutes 2012, section 90.181, subdivision 2, is amended to read:

Subd. 2.

Deferred payments.

(a) If the amount of the statement is not paid within
30 days of the date thereof, it shall bear interest at the rate determined pursuant to section
16A.124, except that the purchaser shall not be required to pay interest that totals $1 or
less. If the amount is not paid within 60 days, the commissioner shall place the account in
the hands of the commissioner of revenue according to chapter 16D, who shall proceed to
collect the same. When deemed in the best interests of the state, the commissioner shall
take possession of the timber for which an amount is due wherever it may be found and
sell the same informally or at public auction after giving reasonable notice.

(b) The proceeds of the sale shall be applied, first, to the payment of the expenses
of seizure and sale; and, second, to the payment of the amount due for the timber, with
interest; and the surplus, if any, shall belong to the state; and, in case a sufficient amount is
not realized to pay these amounts in full, the balance shall be collected by the attorney
general. Neither payment of the amount, nor the recovery of judgment therefor, nor
satisfaction of the judgment, nor the seizure and sale of timber, shall release the sureties
on any deleted text begin bond deleted text end new text begin security deposit new text end given pursuant to this chapter, or preclude the state from
afterwards claiming that the timber was cut or removed contrary to law and recovering
damages for the trespass thereby committed, or from prosecuting the offender criminally.

Sec. 52.

Minnesota Statutes 2012, section 90.191, subdivision 1, is amended to read:

Subdivision 1.

Sale requirements.

The commissioner may sell the timber on any
tract of state land in lots not exceeding 500 cords in volume, without formalities but for
not less than the full appraised value thereof, to any person. No sale shall be made under
this section to any person holding deleted text begin two deleted text end new text begin more than four new text end permits issued hereunder which are
still in effect deleted text begin ; deleted text end new text begin . new text end deleted text begin except that (1) a partnership as defined in chapter 323, which may include
spouses but which shall provide evidence that a partnership exists, may be holding two
permits for each of not more than three partners who are actively engaged in the business
of logging or who are the spouses of persons who are actively engaged in the business of
logging with that partnership; and (2) a corporation, a majority of whose shares and voting
power are owned by natural persons related to each other within the fourth degree of
kindred according to the rules of the civil law or their spouses or estates, may be holding
two permits for each of not more than three shareholders who are actively engaged in the
business of logging or who are the spouses of persons who are actively engaged in the
business of logging with that corporation.
deleted text end

Sec. 53.

Minnesota Statutes 2012, section 90.193, is amended to read:

90.193 EXTENSION OF TIMBER PERMITS.

The commissioner may, in the case of an exceptional circumstance beyond the
control of the timber permit holder which makes it unreasonable, impractical, and not
feasible to complete cutting and removal under the permit within the time allowed, grant
deleted text begin an deleted text end new text begin one regular new text end extension deleted text begin of deleted text end new text begin for new text end one year. A new text begin written new text end request for the new text begin regular new text end extension must
be received by the commissioner before the permit expires. The request must state the
reason the extension is necessary and be signed by the permit holder. An interest rate of
eight percent may be charged for the period of extension.

Sec. 54.

Minnesota Statutes 2012, section 90.195, is amended to read:

90.195 SPECIAL USE new text begin AND PRODUCT new text end PERMIT.

new text begin (a) new text end The commissioner may issue a permit to salvage or cut not to exceed 12 cords of
fuelwood per year for personal use from either or both of the following sources: (1) dead,
down, and deleted text begin diseased deleted text end new text begin damaged new text end trees; (2) other trees that are of negative value under good
forest management practices. The permits may be issued for a period not to exceed one
year. The commissioner shall charge a fee for the permit deleted text begin that shall cover the commissioner's
cost of issuing the permit and deleted text end new text begin as provided under section 90.041, subdivision 10. The fee
new text end shall not exceed the current market value of fuelwood of similar species, grade, and volume
that is being sold in the area where the salvage or cutting is authorized under the permit.

new text begin (b) The commissioner may issue a special product permit under section 89.42 for
commercial use, which may include incidental volumes of boughs, gravel, hay, biomass,
and other products derived from forest management activities. The value of the products
is the current market value of the products that are being sold in the area. The permit may
be issued for a period not to exceed one year and the commissioner shall charge a fee for
the permit as provided under section 90.041, subdivision 10.
new text end

new text begin (c) The commissioner may issue a special use permit for incidental volumes of
timber from approved right-of-way road clearing across state land for the purpose of
accessing a state timber permit. The permit shall include the volume and value of timber
to be cleared and may be issued for a period not to exceed one year. A presale conference
as required under section 90.151, subdivision 6, must be completed before the start of
any activities under the permit.
new text end

Sec. 55.

Minnesota Statutes 2012, section 90.201, subdivision 2a, is amended to read:

Subd. 2a.

Prompt payment of refunds.

Any refund of cash that is due to a permit
holder as determined on a final statement transmitted pursuant to section 90.181 or a
refund of cash made pursuant to section 90.161, subdivision 1, deleted text begin or 90.173, paragraph
(a), deleted text end shall be paid to the permit holder according to section 16A.124 unless the refund is
credited on another permit as provided in this chapter.

Sec. 56.

Minnesota Statutes 2012, section 90.211, is amended to read:

90.211 PURCHASE MONEY, WHEN FORFEITED.

If the holder of an effective permit new text begin begins to cut and then new text end fails to deleted text begin cut deleted text end new text begin complete new text end any
part deleted text begin thereof deleted text end new text begin of the permit new text end before the expiration of the permit, the permit holder shall
nevertheless pay the price therefor; but under no circumstances shall timber be cut after
the expiration of the permit or extension thereof.

Sec. 57.

Minnesota Statutes 2012, section 90.221, is amended to read:

90.221 TIMBER SALES RECORDS.

The commissioner shall keep timber sales records, including the description of each
tract of land from which any timber is sold; the date of the report of the state appraisers;
the kind, amount, and value of the timber as shown by such report; the date of the sale;
the price for which the timber was sold; the name of the purchaser; the number, date
of issuance and date of expiration of each permit; the date of any assignment of the
permit; the name of the assignee; the dates of the filing and the amounts of the respective
deleted text begin bonds deleted text end new text begin security deposits new text end by the purchaser and assignee; the names of the sureties thereon;
the amount of timber taken from the land; the date of the report of the scaler and state
appraiser; the names of the scaler and the state appraiser who scaled the timber; and the
amount paid for such timber and the date of payment.

Sec. 58.

Minnesota Statutes 2012, section 90.252, subdivision 1, is amended to read:

Subdivision 1.

Consumer scaling.

The commissioner may enter into an agreement
with either a timber sale permittee, or the purchaser of the cut products, or both, so
that the scaling of the cut timber and the collection of the payment for the same can be
consummated by the deleted text begin consumer deleted text end new text begin state new text end . Such an agreement shall be approved as to form and
content by the attorney general and shal