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HF 976

Conference Committee Report - 88th Legislature (2013 - 2014) Posted on 05/18/2013 03:51pm

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1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 976
1.2A bill for an act
1.3relating to state government; appropriating money for environment, natural
1.4resources, and agriculture; modifying and providing for certain fees; modifying
1.5and providing for disposition of certain revenue; creating accounts; modifying
1.6payment of certain costs; modifying grant programs; providing for agricultural
1.7water quality certification; modifying Minnesota Noxious Weed Law; modifying
1.8pesticide control; modifying animal waste technician provisions; modifying
1.9certain renewable energy and biofuel provisions; modifying bonding requirements
1.10for grain buyers and grain storage; making technical changes; modifying certain
1.11permit requirements; providing for federal law compliance; providing for certain
1.12easements; establishing pollinator habitat program; modifying state trails;
1.13modifying all-terrain vehicle operating provisions; modifying State Timber
1.14Act; modifying water use requirements; modifying certain park boundaries;
1.15modifying reporting requirements; modifying Petroleum Tank Release Cleanup
1.16Act; providing for silica sand mining model standards and technical assistance;
1.17establishing criteria for wastewater treatment system projects; providing for
1.18wastewater laboratory certification; providing for product stewardship programs;
1.19modifying Minnesota Power Plant Siting Act; providing for sanitary districts;
1.20requiring groundwater sustainability recommendations; requiring rulemaking;
1.21amending Minnesota Statutes 2012, sections 17.03, subdivision 3; 17.1015;
1.2217.118, subdivision 2; 18.77, subdivisions 3, 4, 10, 12; 18.78, subdivision 3;
1.2318.79, subdivisions 6, 13; 18.82, subdivision 1; 18.91, subdivisions 1, 2; 18B.01,
1.24by adding a subdivision; 18B.065, subdivision 2a; 18B.07, subdivisions 4, 5, 7;
1.2518B.26, subdivision 3; 18B.305; 18B.316, subdivisions 1, 3, 4, 8, 9; 18B.37,
1.26subdivision 4; 18C.430; 18C.433, subdivision 1; 31.94; 41A.10, subdivision 2,
1.27by adding a subdivision; 41A.105, subdivisions 1a, 3, 5; 41A.12, by adding a
1.28subdivision; 41B.04, subdivision 9; 41D.01, subdivision 4; 84.027, by adding a
1.29subdivision; 84.82, by adding a subdivision; 84.922, by adding a subdivision;
1.3084.9256, subdivision 1; 84.928, subdivision 1; 84D.108, subdivision 2; 85.015,
1.31subdivision 13; 85.052, subdivision 6; 85.054, by adding a subdivision; 85.055,
1.32subdivisions 1, 2; 85.42; 89.0385; 89.17; 90.01, subdivisions 4, 5, 6, 8, 11;
1.3390.031, subdivision 4; 90.041, subdivisions 2, 5, 6, 9, by adding subdivisions;
1.3490.045; 90.061, subdivision 8; 90.101, subdivision 1; 90.121; 90.145; 90.151,
1.35subdivisions 1, 2, 3, 4, 6, 7, 8, 9; 90.161; 90.162; 90.171; 90.181, subdivision 2;
1.3690.191, subdivision 1; 90.193; 90.195; 90.201, subdivision 2a; 90.211; 90.221;
1.3790.252, subdivision 1; 90.301, subdivisions 2, 4; 90.41, subdivision 1; 92.50;
1.3893.17, subdivision 1; 93.1925, subdivision 2; 93.25, subdivision 2; 93.285,
1.39subdivision 3; 93.46, by adding a subdivision; 93.481, subdivisions 3, 5, by
1.40adding subdivisions; 93.482; 97A.401, subdivision 3; 103G.265, subdivisions
1.412, 3; 103G.271, subdivisions 1, 4, 6; 103G.282; 103G.287, subdivisions 1,
1.424, 5; 103G.615, subdivision 2; 103I.205, subdivision 1; 103I.601, by adding
1.43a subdivision; 114D.50, subdivision 4; 115A.1320, subdivision 1; 115B.20,
2.1subdivision 6; 115B.28, subdivision 1; 115C.02, subdivision 4; 115C.08,
2.2subdivision 4, by adding a subdivision; 115D.10; 116.48, subdivision 6; 116C.03,
2.3subdivisions 2, 4, 5; 116D.04, by adding a subdivision; 116J.437, subdivision
2.41; 168.1296, subdivision 1; 216E.12, subdivision 4; 223.17, by adding a
2.5subdivision; 232.22, by adding a subdivision; 239.051, by adding subdivisions;
2.6239.791, subdivisions 1, 2a, 2b; 239.7911; 275.066; 296A.01, subdivision 19, by
2.7adding a subdivision; 473.846; Laws 2012, chapter 249, section 11; proposing
2.8coding for new law in Minnesota Statutes, chapters 17; 18; 84; 90; 93; 115;
2.9115A; 116C; proposing coding for new law as Minnesota Statutes, chapter 442A;
2.10repealing Minnesota Statutes 2012, sections 18.91, subdivisions 3, 5; 18B.07,
2.11subdivision 6; 90.163; 90.173; 90.41, subdivision 2; 103G.265, subdivision 2a;
2.12115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10; 115.19; 115.20; 115.21; 115.22;
2.13115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29; 115.30; 115.31; 115.32;
2.14115.33; 115.34; 115.35; 115.36; 115.37; 239.791, subdivision 1a; Minnesota
2.15Rules, parts 7021.0010, subparts 1, 2, 4, 5; 7021.0020; 7021.0030; 7021.0040;
2.167021.0050, subpart 5; 9210.0300; 9210.0310; 9210.0320; 9210.0330; 9210.0340;
2.179210.0350; 9210.0360; 9210.0370; 9210.0380; 9220.0530, subpart 6.
2.18May 18, 2013
2.19The Honorable Paul Thissen
2.20Speaker of the House of Representatives
2.21The Honorable Sandra L. Pappas
2.22President of the Senate
2.23We, the undersigned conferees for H. F. No. 976 report that we have agreed upon the
2.24items in dispute and recommend as follows:
2.25That the Senate recede from its amendments and that H. F. No. 976 be further
2.26amended as follows:
2.27Delete everything after the enacting clause and insert:

2.28"ARTICLE 1
2.29AGRICULTURE APPROPRIATIONS

2.30
Section 1. SUMMARY OF APPROPRIATIONS.
2.31The amounts shown in this section summarize direct appropriations, by fund, made
2.32in this article.
2.33
2014
2015
Total
2.34
General
$
39,050,000
$
39,050,000
$
78,100,000
2.35
Agricultural
$
1,240,000
$
1,240,000
$
2,480,000
2.36
Remediation
$
388,000
$
388,000
$
776,000
2.37
Total
$
40,678,000
$
40,678,000
$
81,356,000

2.38
Sec. 2. AGRICULTURE APPROPRIATIONS.
2.39The sums shown in the columns marked "Appropriations" are appropriated to the
2.40agencies and for the purposes specified in this act. The appropriations are from the general
2.41fund, or another named fund, and are available for the fiscal years indicated for each
2.42purpose. The figures "2014" and "2015" used in this act mean that the appropriations
3.1listed under them are available for the fiscal year ending June 30, 2014, or June 30, 2015,
3.2respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015.
3.3"The biennium" is fiscal years 2014 and 2015.
3.4
APPROPRIATIONS
3.5
Available for the Year
3.6
Ending June 30
3.7
2014
2015

3.8
Sec. 3. DEPARTMENT OF AGRICULTURE
3.9
Subdivision 1.Total Appropriation
$
33,198,000
$
33,198,000
3.10
Appropriations by Fund
3.11
2014
2015
3.12
General
31,570,000
31,570,000
3.13
Remediation
388,000
388,000
3.14
Agricultural
1,240,000
1,240,000
3.15The amounts that may be spent for each
3.16purpose are specified in the following
3.17subdivisions.
3.18
Subd. 2.Protection Services
12,808,000
12,808,000
3.19
Appropriations by Fund
3.20
2014
2015
3.21
General
11,980,000
11,980,000
3.22
Agricultural
440,000
440,000
3.23
Remediation
388,000
388,000
3.24$388,000 the first year and $388,000 the
3.25second year are from the remediation fund
3.26for administrative funding for the voluntary
3.27cleanup program.
3.28$25,000 the first year and $25,000 the second
3.29year are for compensation for destroyed or
3.30crippled animals under Minnesota Statutes,
3.31section 3.737. If the amount in the first year
3.32is insufficient, the amount in the second year
3.33is available in the first year.
3.34$75,000 the first year and $75,000 the second
3.35year are for compensation for crop damage
4.1under Minnesota Statutes, section 3.7371. If
4.2the amount in the first year is insufficient, the
4.3amount in the second year is available in the
4.4first year.
4.5If the commissioner determines that claims
4.6made under Minnesota Statutes, section
4.73.737 or 3.7371, are unusually high, amounts
4.8appropriated for either program may be
4.9transferred to the appropriation for the other
4.10program.
4.11$225,000 the first year and $225,000 the
4.12second year are for an increase in retail food
4.13handler inspections.
4.14$245,000 the first year and $245,000 the
4.15second year are for an increase in the
4.16operating budget for the Laboratory Services
4.17Division.
4.18Notwithstanding Minnesota Statutes, section
4.1918B.05, $90,000 the first year and $90,000
4.20the second year are from the pesticide
4.21regulatory account in the agricultural fund
4.22for an increase in the operating budget for
4.23the Laboratory Services Division.
4.24$100,000 the first year and $100,000 the
4.25second year are from the pesticide regulatory
4.26account in the agricultural fund to monitor
4.27pesticides and pesticide degradates in surface
4.28water and groundwater in areas vulnerable to
4.29surface water impairments and groundwater
4.30degradation and to use data collected to
4.31improve pesticide use practices. This is a
4.32onetime appropriation.
4.33$100,000 the first year and $100,000 the
4.34second year are from the pesticide regulatory
5.1account in the agricultural fund to update
5.2and modify applicator education and training
5.3materials. No later than January 15, 2015, the
5.4commissioner must report to the legislative
5.5committees with jurisdiction over agriculture
5.6finance regarding the agency's progress and a
5.7schedule of activities the commissioner will
5.8accomplish to update and modify additional
5.9materials by December 31, 2017.
5.10Notwithstanding Minnesota Statutes, section
5.1118B.05, $150,000 the first year and $150,000
5.12the second year are from the pesticide
5.13regulatory account in the agricultural fund to:
5.14develop and use best management practices
5.15that protect pollinators by providing habitat
5.16necessary for their survival and reproduction;
5.17incorporate these practices into pesticide
5.18applicator and county agricultural inspector
5.19training; and increase public awareness of
5.20the importance of pollinators and pollinator
5.21habitat. The commissioner may transfer a
5.22portion of this appropriation to the Board of
5.23Regents of the University of Minnesota to
5.24design habitat and measure and report the
5.25outcomes achieved under this paragraph.
5.26This is a onetime appropriation.
5.27
5.28
Subd. 3.Agricultural Marketing and
Development
3,062,000
3,062,000
5.29$186,000 the first year and $186,000 the
5.30second year are for transfer to the Minnesota
5.31grown account and may be used as grants
5.32for Minnesota grown promotion under
5.33Minnesota Statutes, section 17.102. Grants
5.34may be made for one year. Notwithstanding
5.35Minnesota Statutes, section 16A.28, the
5.36appropriations encumbered under contract
6.1on or before June 30, 2015, for Minnesota
6.2grown grants in this paragraph are available
6.3until June 30, 2017.
6.4$100,000 each year is for a licensed
6.5education professional for the agriculture
6.6in the classroom program to develop and
6.7disseminate curriculum, provide teacher
6.8training opportunities, and work with
6.9schools to enhance agricultural literacy by
6.10incorporating agriculture into classroom
6.11curriculum.
6.12The commissioner may use funds
6.13appropriated in this subdivision for annual
6.14cost-share payments to resident farmers
6.15or entities that sell, process, or package
6.16agricultural products in this state for the costs
6.17of organic certification. Annual cost-share
6.18payments must be 75 percent of the cost of the
6.19certification or $750, whichever is less. The
6.20commissioner may allocate these funds for
6.21organic market and program development,
6.22including organic producer education efforts,
6.23assistance for persons transitioning from
6.24conventional to organic agriculture, or
6.25sustainable agriculture demonstration grants
6.26authorized under Minnesota Statutes, section
6.2717.116, and pertaining to organic research or
6.28demonstration. Any unencumbered balance
6.29does not cancel at the end of the first year
6.30and is available for the second year.
6.31
6.32
Subd. 4.Bioenergy and Value-Added
Agriculture
10,235,000
10,235,000
6.33$10,235,000 the first year and $10,235,000
6.34the second year are for the agricultural
6.35growth, research, and innovation program
7.1in Minnesota Statutes, section 41A.12.
7.2The commissioner shall consider creating
7.3a competitive grant program for small
7.4renewable energy projects for rural residents.
7.5No later than February 1, 2014, and February
7.61, 2015, the commissioner must report to
7.7the legislative committees with jurisdiction
7.8over agriculture policy and finance regarding
7.9the commissioner's accomplishments and
7.10anticipated accomplishments in the following
7.11areas: developing new markets for Minnesota
7.12farmers by providing more fruits and
7.13vegetables for Minnesota school children;
7.14facilitating the start-up, modernization,
7.15or expansion of livestock operations
7.16including beginning and transitioning
7.17livestock operations; facilitating the start-up,
7.18modernization, or expansion of other
7.19beginning and transitioning farms; research
7.20on conventional and cover crops; and biofuel
7.21and other renewable energy development
7.22including small renewable energy projects
7.23for rural residents.
7.24The commissioner may use up to 4.5 percent
7.25of this appropriation for costs incurred to
7.26administer the program. Any unencumbered
7.27balance does not cancel at the end of the first
7.28year and is available for the second year.
7.29Notwithstanding Minnesota Statutes, section
7.3016A.28, the appropriations encumbered
7.31under contract on or before June 30, 2015, for
7.32agricultural growth, research, and innovation
7.33grants in this subdivision are available until
7.34June 30, 2017.
7.35Money in this appropriation may be used
7.36to provide additional assistance to persons
8.1eligible for the pilot agricultural microloan
8.2program under Minnesota Statutes, section
8.341B.056.
8.4Funds in this appropriation may be used for
8.5grants under this paragraph. The NextGen
8.6Energy Board, established in Minnesota
8.7Statutes, section 41A.105, shall make
8.8recommendations to the commissioner on
8.9grants for owners of Minnesota facilities
8.10producing bioenergy, biobased content,
8.11or a biobased formulated product; for
8.12organizations that provide for on-station,
8.13on-farm field scale research and outreach to
8.14develop and test the agronomic and economic
8.15requirements of diverse stands of prairie
8.16plants and other perennials for bioenergy
8.17systems; or for certain nongovernmental
8.18entities. For the purposes of this paragraph,
8.19"bioenergy" includes transportation fuels
8.20derived from cellulosic material, as well as
8.21the generation of energy for commercial heat,
8.22industrial process heat, or electrical power
8.23from cellulosic materials via gasification or
8.24other processes. Grants are limited to 50
8.25percent of the cost of research, technical
8.26assistance, or equipment related to bioenergy,
8.27biobased content, or biobased formulated
8.28product production or $500,000, whichever
8.29is less. Grants to nongovernmental entities
8.30for the development of business plans and
8.31structures related to community ownership
8.32of eligible bioenergy facilities together may
8.33not exceed $150,000. The board shall make
8.34a good-faith effort to select projects that have
8.35merit and, when taken together, represent a
8.36variety of bioenergy technologies, biomass
9.1feedstocks, and geographic regions of the
9.2state. Projects must have a qualified engineer
9.3provide certification on the technology and
9.4fuel source. Grantees must provide reports
9.5at the request of the commissioner. No later
9.6than February 1, 2014, and February 1,
9.72015, the commissioner shall report on the
9.8projects funded under this appropriation to
9.9the legislative committees with jurisdiction
9.10over agriculture policy and finance.
9.11Money in this appropriation may be used
9.12for sustainable agriculture grants under
9.13Minnesota Statutes, section 17.116.
9.14Notwithstanding Minnesota Statutes, section
9.1541A.12, subdivision 3, of the amount
9.16appropriated in this subdivision, $1,000,000
9.17the first year and $1,000,000 the second year
9.18are for distribution in equal amounts to each
9.19of the state's county fairs to enhance arts
9.20access and education and to preserve and
9.21promote Minnesota's history and cultural
9.22heritage.
9.23
9.24
Subd. 5.Administration and Financial
Assistance
7,093,000
7,093,000
9.25
Appropriations by Fund
9.26
General
6,293,000
6,293,000
9.27
Agricultural
800,000
800,000
9.28$634,000 the first year and $634,000 the
9.29second year are for continuation of the dairy
9.30development and profitability enhancement
9.31and dairy business planning grant programs
9.32established under Laws 1997, chapter
9.33216, section 7, subdivision 2, and Laws
9.342001, First Special Session chapter 2,
9.35section 9, subdivision 2. The commissioner
10.1may allocate the available sums among
10.2permissible activities, including efforts to
10.3improve the quality of milk produced in the
10.4state in the proportions that the commissioner
10.5deems most beneficial to Minnesota's
10.6dairy farmers. The commissioner must
10.7submit a detailed accomplishment report
10.8and a work plan detailing future plans for,
10.9and anticipated accomplishments from,
10.10expenditures under this program to the
10.11chairs and ranking minority members of the
10.12legislative committees with jurisdiction over
10.13agricultural policy and finance on or before
10.14the start of each fiscal year. If significant
10.15changes are made to the plans in the course
10.16of the year, the commissioner must notify the
10.17chairs and ranking minority members.
10.18$47,000 the first year and $47,000 the second
10.19year are for the Northern Crops Institute.
10.20These appropriations may be spent to
10.21purchase equipment.
10.22$18,000 the first year and $18,000 the
10.23second year are for a grant to the Minnesota
10.24Livestock Breeders Association.
10.25$235,000 the first year and $235,000 the
10.26second year are for grants to the Minnesota
10.27Agricultural Education and Leadership
10.28Council for programs of the council under
10.29Minnesota Statutes, chapter 41D.
10.30$474,000 the first year and $474,000 the
10.31second year are for payments to county and
10.32district agricultural societies and associations
10.33under Minnesota Statutes, section 38.02,
10.34subdivision 1. Aid payments to county and
10.35district agricultural societies and associations
11.1shall be disbursed no later than July 15 of
11.2each year. These payments are the amount of
11.3aid from the state for an annual fair held in
11.4the previous calendar year.
11.5$1,000 the first year and $1,000 the second
11.6year are for grants to the Minnesota State
11.7Poultry Association.
11.8$108,000 the first year and $108,000 the
11.9second year are for annual grants to the
11.10Minnesota Turf Seed Council for basic
11.11and applied research on: (1) the improved
11.12production of forage and turf seed related to
11.13new and improved varieties; and (2) native
11.14plants, including plant breeding, nutrient
11.15management, pest management, disease
11.16management, yield, and viability. The grant
11.17recipient may subcontract with a qualified
11.18third party for some or all of the basic or
11.19applied research.
11.20$500,000 the first year and $500,000 the
11.21second year are for grants to Second Harvest
11.22Heartland on behalf of Minnesota's six
11.23Second Harvest food banks for the purchase
11.24of milk for distribution to Minnesota's food
11.25shelves and other charitable organizations
11.26that are eligible to receive food from the food
11.27banks. Milk purchased under the grants must
11.28be acquired from Minnesota milk processors
11.29and based on low-cost bids. The milk must be
11.30allocated to each Second Harvest food bank
11.31serving Minnesota according to the formula
11.32used in the distribution of United States
11.33Department of Agriculture commodities
11.34under The Emergency Food Assistance
11.35Program (TEFAP). Second Harvest
12.1Heartland must submit quarterly reports
12.2to the commissioner on forms prescribed
12.3by the commissioner. The reports must
12.4include, but are not limited to, information
12.5on the expenditure of funds, the amount
12.6of milk purchased, and the organizations
12.7to which the milk was distributed. Second
12.8Harvest Heartland may enter into contracts
12.9or agreements with food banks for shared
12.10funding or reimbursement of the direct
12.11purchase of milk. Each food bank receiving
12.12money from this appropriation may use up to
12.13two percent of the grant for administrative
12.14expenses.
12.15$94,000 the first year and $94,000 the
12.16second year are for transfer to the Board of
12.17Trustees of the Minnesota State Colleges
12.18and Universities for statewide mental health
12.19counseling support to farm families and
12.20business operators through farm business
12.21management programs at Central Lakes
12.22College and Ridgewater College.
12.23$17,000 the first year and $17,000 the
12.24second year are for grants to the Minnesota
12.25Horticultural Society.
12.26Notwithstanding Minnesota Statutes,
12.27section 18C.131, $800,000 the first year
12.28and $800,000 the second year are from the
12.29fertilizer account in the agricultural fund
12.30for grants for fertilizer research as awarded
12.31by the Minnesota Agricultural Fertilizer
12.32Research and Education Council under
12.33Minnesota Statutes, section 18C.71. The
12.34amount appropriated in either fiscal year
12.35must not exceed 57 percent of the inspection
13.1fee revenue collected under Minnesota
13.2Statutes, section 18C.425, subdivision 6,
13.3during the previous fiscal year. No later
13.4than February 1, 2015, the commissioner
13.5shall report to the legislative committees
13.6with jurisdiction over agriculture finance.
13.7The report must include the progress and
13.8outcome of funded projects as well as the
13.9sentiment of the council concerning the need
13.10for additional research funds.

13.11
Sec. 4. BOARD OF ANIMAL HEALTH
$
4,837,000
$
4,837,000

13.12
13.13
Sec. 5. AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE
$
2,643,000
$
2,643,000

13.14ARTICLE 2
13.15AGRICULTURE POLICY

13.16    Section 1. Minnesota Statutes 2012, section 13.6435, is amended by adding a
13.17subdivision to read:
13.18    Subd. 14. Agricultural water quality certification program. Data collected
13.19under the Minnesota agricultural water quality certification program are classified under
13.20section 17.9899.

13.21    Sec. 2. Minnesota Statutes 2012, section 17.03, subdivision 3, is amended to read:
13.22    Subd. 3. Cooperation with federal agencies. (a) The commissioner shall cooperate
13.23with the government of the United States, with financial agencies created to assist in the
13.24development of the agricultural resources of this state, and so far as practicable may use
13.25the facilities provided by the existing state departments and the various state and local
13.26organizations. This subdivision is intended to relate to every function and duty which
13.27devolves upon the commissioner.
13.28    (b) The commissioner may apply for, receive, and disburse federal funds made
13.29available to the state by federal law or regulation for any purpose related to the powers and
13.30duties of the commissioner. All money received by the commissioner under this paragraph
13.31shall be deposited in the state treasury and is appropriated to the commissioner for the
13.32purposes for which it was received. Money made available under this paragraph may
13.33be paid pursuant to applicable federal regulations and rate structures. Money received
14.1under this paragraph does not cancel and is available for expenditure according to federal
14.2law. The commissioner may contract with and enter into grant agreements with persons,
14.3organizations, educational institutions, firms, corporations, other state agencies, and any
14.4agency or instrumentality of the federal government to carry out agreements made with
14.5the federal government relating to the expenditure of money under this paragraph. Bid
14.6requirements under chapter 16C do not apply to contracts under this paragraph.

14.7    Sec. 3. Minnesota Statutes 2012, section 17.1015, is amended to read:
14.817.1015 PROMOTIONAL EXPENDITURES.
14.9In order to accomplish the purposes of section 17.101, the commissioner may
14.10participate jointly with private persons in appropriate programs and projects and may enter
14.11into contracts to carry out those programs and projects. The contracts may not include
14.12the acquisition of land or buildings and are not subject to the provisions of chapter 16C
14.13relating to competitive bidding.
14.14The commissioner may spend money appropriated for the purposes of section
14.1517.101 in the same manner that private persons, firms, corporations, and associations
14.16make expenditures for these purposes, and expenditures made pursuant to section 17.101
14.17for food, lodging, or travel are not governed by the travel rules of the commissioner of
14.18management and budget.

14.19    Sec. 4. Minnesota Statutes 2012, section 17.118, subdivision 2, is amended to read:
14.20    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this
14.21subdivision have the meanings given them.
14.22    (b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed
14.23cervidae, ratitae, bison, sheep, horses, and llamas.
14.24    (c) "Qualifying expenditures" means the amount spent for:
14.25    (1) the acquisition, construction, or improvement of buildings or facilities for the
14.26production of livestock or livestock products;
14.27    (2) the development of pasture for use by livestock including, but not limited to, the
14.28acquisition, development, or improvement of:
14.29    (i) lanes used by livestock that connect pastures to a central location;
14.30    (ii) watering systems for livestock on pasture including water lines, booster pumps,
14.31and well installations;
14.32    (iii) livestock stream crossing stabilization; and
14.33    (iv) fences; or
15.1    (3) the acquisition of equipment for livestock housing, confinement, feeding, and
15.2waste management including, but not limited to, the following:
15.3    (i) freestall barns;
15.4    (ii) watering facilities;
15.5    (iii) feed storage and handling equipment;
15.6    (iv) milking parlors;
15.7    (v) robotic equipment;
15.8    (vi) scales;
15.9    (vii) milk storage and cooling facilities;
15.10    (viii) bulk tanks;
15.11    (ix) computer hardware and software and associated equipment used to monitor
15.12the productivity and feeding of livestock;
15.13    (x) manure pumping and storage facilities;
15.14    (xi) swine farrowing facilities;
15.15    (xii) swine and cattle finishing barns;
15.16    (xiii) calving facilities;
15.17    (xiv) digesters;
15.18    (xv) equipment used to produce energy;
15.19    (xvi) on-farm processing facilities equipment;
15.20    (xvii) fences; and
15.21    (xviii) livestock pens and corrals and sorting, restraining, and loading chutes.
15.22    Except for qualifying pasture development expenditures under clause (2), qualifying
15.23expenditures only include amounts that are allowed to be capitalized and deducted under
15.24either section 167 or 179 of the Internal Revenue Code in computing federal taxable
15.25income. Qualifying expenditures do not include an amount paid to refinance existing debt.
15.26    (d) "Qualifying period" means, for a grant awarded during a fiscal year, that full
15.27calendar year of which the first six months precede the first day of the current fiscal year. For
15.28example, an eligible person who makes qualifying expenditures during calendar year 2008
15.29is eligible to receive a livestock investment grant between July 1, 2008, and June 30, 2009.

15.30    Sec. 5. [17.9891] PURPOSE.
15.31The commissioner, in consultation with the commissioner of natural resources,
15.32commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
15.33may implement a Minnesota agricultural water quality certification program whereby a
15.34producer who demonstrates practices and management sufficient to protect water quality
15.35is certified for up to ten years and presumed to be contributing the producer's share of
16.1any targeted reduction of water pollutants during the certification period. The program
16.2is voluntary. The voluntary program will first be piloted in selected watersheds across
16.3the state, until the commissioner, in consultation with the Minnesota Agricultural Water
16.4Quality Certification Program Advisory Committee, commissioner of natural resources,
16.5commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
16.6determines the program is suitable to be implemented in other watersheds.

16.7    Sec. 6. [17.9892] DEFINITIONS.
16.8    Subdivision 1. Application. The definitions in this section apply to sections
16.917.9891 to 17.993.
16.10    Subd. 2. Certification. "Certification" means a producer has demonstrated
16.11compliance with all applicable environmental rules and statutes for all of the producer's
16.12owned and rented agricultural land and has achieved a satisfactory score through the
16.13certification instrument as verified by a certifying agent.
16.14    Subd. 3. Certifying agent. "Certifying agent" means a person who is authorized
16.15by the commissioner to assess producers to determine whether a producer satisfies the
16.16standards of the program.
16.17    Subd. 4. Effective control. "Effective control" means possession of land by
16.18ownership, written lease, or other legal agreement and authority to act as decision
16.19maker for the day-to-day management of the operation at the time the producer achieves
16.20certification and for the required certification period.
16.21    Subd. 5. Eligible land. "Eligible land" means all acres of a producer's agricultural
16.22operation, whether contiguous or not, that are under the effective control of the producer
16.23at the time the producer enters into the program and that the producer operates with
16.24equipment, labor, and management.
16.25    Subd. 6. Program. "Program" means the Minnesota agricultural water quality
16.26certification program.
16.27    Subd. 7. Technical assistance. "Technical assistance" means professional, advisory,
16.28or cost-share assistance provided to individuals in order to achieve certification.

16.29    Sec. 7. [17.9893] CERTIFICATION INSTRUMENT.
16.30The commissioner, in consultation with the Minnesota Agricultural Water Quality
16.31Certification Program Advisory Committee, commissioner of natural resources,
16.32commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
16.33shall develop an analytical instrument to assess the water quality practices and
16.34management of agricultural operations. This instrument shall be used to certify that the
17.1water quality practices and management of an agricultural operation are consistent with
17.2state water quality goals and standards. The commissioner shall define a satisfactory score
17.3for certification purposes. The certification instrument tool shall:
17.4(1) integrate applicable existing regulatory requirements;
17.5(2) utilize technology and prioritize ease of use;
17.6(3) utilize a water quality index or score applicable to the landscape;
17.7(4) incorporate a process for updates and revisions as practices, management, and
17.8technology changes become established and approved; and
17.9(5) comprehensively address water quality impacts.

17.10    Sec. 8. [17.9894] CERTIFYING AGENT LICENSE.
17.11    Subdivision 1. License. A person who offers certification services to producers
17.12as part of the program must satisfy all criteria in subdivision 2 and be licensed by
17.13the commissioner. A certifying agent is ineligible to provide certification services
17.14to any producer to whom the certifying agent has also provided technical assistance.
17.15Notwithstanding section 16A.1283, the commissioner may set license fees.
17.16    Subd. 2. Certifying agent requirements. In order to be licensed as a certifying
17.17agent, a person must:
17.18(1) be an agricultural conservation professional employed by a soil and water
17.19conservation district or the Natural Resources Conservation Service, a Minnesota certified
17.20crop advisor recognized by the American Society of Agronomy, or an individual with
17.21agricultural conservation experience approved by the commissioner. The commissioner
17.22may establish eligibility criteria by rule;
17.23(2) have passed a comprehensive exam, as set by the commissioner, evaluating
17.24knowledge of water quality, soil health, best farm management techniques, and the
17.25certification instrument; and
17.26(3) maintain continuing education requirements as set by the commissioner.

17.27    Sec. 9. [17.9895] DUTIES OF A CERTIFYING AGENT.
17.28    Subdivision 1. Duties. A certifying agent shall conduct a formal certification
17.29assessment utilizing the certification instrument to determine whether a producer meets
17.30program criteria. If a producer satisfies all requirements, the certifying agent shall notify
17.31the commissioner of the producer's eligibility and request that the commissioner issue a
17.32certificate. All records and documents used in the assessment shall be compiled by the
17.33certifying agent and submitted to the commissioner.
18.1    Subd. 2. Violations. (a) In the event a certifying agent violates any provision of
18.2sections 17.9891 to 17.993 or an order of the commissioner, the commissioner may issue a
18.3written warning or a correction order and may suspend or revoke a license.
18.4(b) If the commissioner suspends or revokes a license, the certifying agent has ten
18.5days from the date of suspension or revocation to appeal. If a certifying agent appeals, the
18.6commissioner shall hold an administrative hearing within 30 days of the suspension or
18.7revocation of the license, or longer by agreement of the parties, to determine whether the
18.8license is revoked or suspended. The commissioner shall issue an opinion within 30 days.
18.9If a person notifies the commissioner that the person intends to contest the commissioner's
18.10opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with
18.11the applicable provisions of chapter 14 for hearings in contested cases.

18.12    Sec. 10. [17.9896] CERTIFICATION PROCEDURES.
18.13    Subdivision 1. Producer duties. A producer who seeks certification of eligible land
18.14shall conduct an initial assessment using the certification instrument, obtain technical
18.15assistance if necessary to achieve a satisfactory score on the certification instrument, and
18.16apply for certification from a licensed certifying agent.
18.17    Subd. 2. Owned land. Once certified, if a producer obtains ownership of additional
18.18agricultural land, the producer must notify a certifying agent and obtain certification of the
18.19additional land within one year in order to retain the producer's original certification.
18.20    Subd. 3. Leased land. Once certified, if a producer leases additional land, then the
18.21producer must notify a certifying agent before farming operations commence on the newly
18.22leased land. A producer who operates leased land is not required to implement practices
18.23that permanently alter the landscape in order to be certified or remain certified if the land
18.24is added following the original certification. A producer who operates leased land must
18.25demonstrate sufficient annual crop management practices, consistent with the original
18.26certification agreement, in order to remain certified.
18.27    Subd. 4. Violations. (a) The commissioner may revoke a certification if the
18.28producer violates subdivision 2 or 3.
18.29(b) The commissioner may revoke a certification and seek reimbursement of any
18.30monetary benefit a producer may have received due to certification from a producer who
18.31fails to maintain certification criteria.
18.32(c) If the commissioner revokes a certification, the producer has 30 days from the
18.33date of suspension or revocation to appeal. If a producer appeals, the commissioner shall
18.34hold an administrative hearing within 30 days of the suspension or revocation of the
18.35certification, or longer by agreement of the parties, to determine whether the certification
19.1is revoked or suspended. The commissioner shall issue an opinion within 30 days. If the
19.2producer notifies the commissioner that the producer intends to contest the commissioner's
19.3opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with
19.4the applicable provisions of chapter 14 for hearings in contested cases.

19.5    Sec. 11. [17.9897] CERTIFICATION CERTAINTY.
19.6(a) Once a producer is certified, the producer:
19.7(1) retains certification for up to ten years from the date of certification if the
19.8producer complies with the certification agreement, even if the producer does not comply
19.9with new state water protection laws or rules that take effect during the certification period;
19.10(2) is presumed to be meeting the producer's contribution to any targeted reduction
19.11of pollutants during the certification period;
19.12(3) is required to continue implementation of practices that maintain the producer's
19.13certification; and
19.14(4) is required to retain all records pertaining to certification.
19.15(b) Paragraph (a) does not preclude enforcement of a local rule or ordinance by a
19.16local unit of government.

19.17    Sec. 12. [17.9898] AUDITS.
19.18The commissioner shall perform random audits of producers and certifying agents to
19.19ensure compliance with the program. All producers and certifying agents shall cooperate
19.20with the commissioner during these audits, and provide all relevant documents to the
19.21commissioner for inspection and copying. Any delay, obstruction, or refusal to cooperate
19.22with the commissioner's audit or falsification of or failure to provide required data or
19.23information is a violation subject to the provisions of section 17.9895, subdivision 2, or
19.2417.9896, subdivision 3.

19.25    Sec. 13. [17.9899] DATA.
19.26All data collected under the program that identifies a producer or a producer's
19.27location are considered nonpublic data as defined in section 13.02, subdivision 9, or
19.28private data on individuals as defined in section 13.02, subdivision 12. The commissioner
19.29shall make available summary data of program outcomes on data classified as private
19.30or nonpublic under this section.

19.31    Sec. 14. [17.991] RULEMAKING.
19.32The commissioner may adopt rules to implement the program.

20.1    Sec. 15. [17.992] REPORTS.
20.2The commissioner, in consultation with the Minnesota Agricultural Water Quality
20.3Certification Program Advisory Committee, commissioner of natural resources,
20.4commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
20.5shall issue a biennial report to the chairs and ranking minority members of the legislative
20.6committees with jurisdiction over agricultural policy on the status of the program.

20.7    Sec. 16. [17.993] FINANCIAL ASSISTANCE.
20.8The commissioner may use contributions from gifts or other state accounts, provided
20.9that the purpose of the expenditure is consistent with the purpose of the accounts, for
20.10grants, loans, or other financial assistance.

20.11    Sec. 17. Minnesota Statutes 2012, section 18.77, subdivision 3, is amended to read:
20.12    Subd. 3. Control. "Control" means to destroy all or part of the aboveground
20.13growth of noxious weeds manage or prevent the maturation and spread of propagating
20.14parts of noxious weeds from one area to another by a lawful method that does not cause
20.15unreasonable adverse effects on the environment as defined in section 18B.01, subdivision
20.1631
, and prevents the maturation and spread of noxious weed propagating parts from one
20.17area to another.

20.18    Sec. 18. Minnesota Statutes 2012, section 18.77, subdivision 4, is amended to read:
20.19    Subd. 4. Eradicate. "Eradicate" means to destroy the aboveground growth and the
20.20roots and belowground plant parts of noxious weeds by a lawful method that, which
20.21 prevents the maturation and spread of noxious weed propagating parts from one area
20.22to another.

20.23    Sec. 19. Minnesota Statutes 2012, section 18.77, subdivision 10, is amended to read:
20.24    Subd. 10. Permanent pasture, hay meadow, woodlot, and or other noncrop
20.25area. "Permanent pasture, hay meadow, woodlot, and or other noncrop area" means an
20.26area of predominantly native or seeded perennial plants that can be used for grazing or hay
20.27purposes but is not harvested on a regular basis and is not considered to be a growing crop.

20.28    Sec. 20. Minnesota Statutes 2012, section 18.77, subdivision 12, is amended to read:
20.29    Subd. 12. Propagating parts. "Propagating parts" means all plant parts, including
20.30seeds, that are capable of producing new plants.

21.1    Sec. 21. [18.771] NOXIOUS WEED CATEGORIES.
21.2(a) For purposes of designation under section 18.79, subdivision 13, noxious weed
21.3category means each of the following categories.
21.4(b) "Prohibited noxious weeds" includes noxious weeds that must be controlled or
21.5eradicated on all lands within the state. Transportation of a prohibited noxious weed's
21.6propagating parts is restricted by permit except as allowed by section 18.82. Prohibited
21.7noxious weeds may not be sold or propagated in Minnesota. There are two regulatory
21.8listings for prohibited noxious weeds in Minnesota:
21.9(1) the noxious weed eradicate list is established. Prohibited noxious weeds placed
21.10on the noxious weed eradicate list are plants that are not currently known to be present in
21.11Minnesota or are not widely established. These species must be eradicated; and
21.12(2) the noxious weed control list is established. Prohibited noxious weeds placed on
21.13the noxious weed control list are plants that are already established throughout Minnesota
21.14or regions of the state. Species on this list must at least be controlled.
21.15(c) "Restricted noxious weeds" includes noxious weeds that are widely distributed
21.16in Minnesota, but for which the only feasible means of control is to prevent their spread
21.17by prohibiting the importation, sale, and transportation of their propagating parts in the
21.18state, except as allowed by section 18.82.
21.19(d) "Specially regulated plants" includes noxious weeds that may be native
21.20species or have demonstrated economic value, but also have the potential to cause harm
21.21in noncontrolled environments. Plants designated as specially regulated have been
21.22determined to pose ecological, economical, or human or animal health concerns. Species
21.23specific management plans or rules that define the use and management requirements
21.24for these plants must be developed by the commissioner of agriculture for each plant
21.25designated as specially regulated. The commissioner must also take measures to minimize
21.26the potential for harm caused by these plants.
21.27(e) "County noxious weeds" includes noxious weeds that are designated by
21.28individual county boards to be enforced as prohibited noxious weeds within the county's
21.29jurisdiction and must be approved by the commissioner of agriculture, in consultation with
21.30the Noxious Weed Advisory Committee. Each county board must submit newly proposed
21.31county noxious weeds to the commissioner of agriculture for review. Approved county
21.32noxious weeds shall also be posted with the county's general weed notice prior to May 15
21.33each year. Counties are solely responsible for developing county noxious weed lists and
21.34their enforcement.

21.35    Sec. 22. Minnesota Statutes 2012, section 18.78, subdivision 3, is amended to read:
22.1    Subd. 3. Cooperative Weed control agreement. The commissioner, municipality,
22.2or county agricultural inspector or county-designated employee may enter into a
22.3cooperative weed control agreement with a landowner or weed management area
22.4group to establish a mutually agreed-upon noxious weed management plan for up to
22.5three years duration, whereby a noxious weed problem will be controlled without
22.6additional enforcement action. If a property owner fails to comply with the noxious weed
22.7management plan, an individual notice may be served.

22.8    Sec. 23. Minnesota Statutes 2012, section 18.79, subdivision 6, is amended to read:
22.9    Subd. 6. Training for control or eradication of noxious weeds. The commissioner
22.10shall conduct initial training considered necessary for inspectors and county-designated
22.11employees in the enforcement of the Minnesota Noxious Weed Law. The director of the
22.12 University of Minnesota Extension Service may conduct educational programs for the
22.13general public that will aid compliance with the Minnesota Noxious Weed Law. Upon
22.14request, the commissioner may provide information and other technical assistance to the
22.15county agricultural inspector or county-designated employee to aid in the performance of
22.16responsibilities specified by the county board under section 18.81, subdivisions 1a and 1b.

22.17    Sec. 24. Minnesota Statutes 2012, section 18.79, subdivision 13, is amended to read:
22.18    Subd. 13. Noxious weed designation. The commissioner, in consultation with the
22.19Noxious Weed Advisory Committee, shall determine which plants are noxious weeds
22.20subject to control regulation under sections 18.76 to 18.91. The commissioner shall
22.21prepare, publish, and revise as necessary, but at least once every three years, a list of
22.22noxious weeds and their designated classification. The list must be distributed to the public
22.23by the commissioner who may request the help of the University of Minnesota Extension,
22.24the county agricultural inspectors, and any other organization the commissioner considers
22.25appropriate to assist in the distribution. The commissioner may, in consultation with
22.26the Noxious Weed Advisory Committee, accept and consider noxious weed designation
22.27petitions from Minnesota citizens or Minnesota organizations or associations.

22.28    Sec. 25. Minnesota Statutes 2012, section 18.82, subdivision 1, is amended to read:
22.29    Subdivision 1. Permits. Except as provided in section 21.74, if a person wants to
22.30transport along a public highway materials or equipment containing the propagating
22.31parts of weeds designated as noxious by the commissioner, the person must secure a
22.32written permit for transportation of the material or equipment from an inspector or
22.33county-designated employee. Inspectors or county-designated employees may issue
23.1permits to persons residing or operating within their jurisdiction. If the noxious weed
23.2propagating parts are removed from materials and equipment or devitalized before
23.3being transported, a permit is not needed A permit is not required for the transport of
23.4noxious weeds for the purpose of destroying propagating parts at a Department of
23.5Agriculture-approved disposal site. Anyone transporting noxious weed propagating parts
23.6for the purpose of disposal at an approved site shall ensure that all materials are contained
23.7in a manner that prevents escape during transport.

23.8    Sec. 26. Minnesota Statutes 2012, section 18.91, subdivision 1, is amended to read:
23.9    Subdivision 1. Duties. The commissioner shall consult with the Noxious Weed
23.10Advisory Committee to advise the commissioner concerning responsibilities under
23.11the noxious weed control program. The committee shall also evaluate species for
23.12invasiveness, difficulty of control, cost of control, benefits, and amount of injury caused
23.13by them. For each species evaluated, the committee shall recommend to the commissioner
23.14on which noxious weed list or lists, if any, the species should be placed. Species currently
23.15 designated as prohibited or restricted noxious weeds or specially regulated plants must
23.16be reevaluated every three years for a recommendation on whether or not they need to
23.17remain on the noxious weed lists. The committee shall also advise the commissioner on
23.18the implementation of the Minnesota Noxious Weed Law and assist the commissioner in
23.19the development of management criteria for each noxious weed category. Members of
23.20the committee are not entitled to reimbursement of expenses nor payment of per diem.
23.21Members shall serve two-year terms with subsequent reappointment by the commissioner.

23.22    Sec. 27. Minnesota Statutes 2012, section 18.91, subdivision 2, is amended to read:
23.23    Subd. 2. Membership. The commissioner shall appoint members, which shall
23.24include representatives from the following:
23.25(1) horticultural science, agronomy, and forestry at the University of Minnesota;
23.26(2) the nursery and landscape industry in Minnesota;
23.27(3) the seed industry in Minnesota;
23.28(4) the Department of Agriculture;
23.29(5) the Department of Natural Resources;
23.30(6) a conservation organization;
23.31(7) an environmental organization;
23.32(8) at least two farm organizations;
23.33(9) the county agricultural inspectors;
23.34(10) city, township, and county governments;
24.1(11) the Department of Transportation;
24.2(12) the University of Minnesota Extension;
24.3(13) the timber and forestry industry in Minnesota;
24.4(14) the Board of Water and Soil Resources; and
24.5(15) soil and water conservation districts.;
24.6(16) Minnesota Association of County Land Commissioners; and
24.7(17) members as needed.

24.8    Sec. 28. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
24.9to read:
24.10    Subd. 4a. Bulk pesticide storage facility. "Bulk pesticide storage facility" means a
24.11facility that is required to have a permit under section 18B.14.

24.12    Sec. 29. Minnesota Statutes 2012, section 18B.07, subdivision 4, is amended to read:
24.13    Subd. 4. Pesticide storage safeguards at application sites. A person may not
24.14allow a pesticide, rinsate, or unrinsed pesticide container to be stored, kept, or to remain in
24.15or on any site without safeguards adequate to prevent an incident. Pesticides may not be
24.16stored in an area with access to an open drain, unless a safeguard is provided.

24.17    Sec. 30. Minnesota Statutes 2012, section 18B.07, subdivision 5, is amended to read:
24.18    Subd. 5. Use of public water supplies for filling application equipment. (a) A
24.19person may not fill pesticide application equipment directly from a public water supply,
24.20as defined in section 144.382, or from public waters, as defined in section 103G.005,
24.21subdivision 15, unless the outlet from the public equipment or water supply is equipped
24.22with a backflow prevention device that complies with the Minnesota Plumbing Code
24.23under Minnesota Rules, parts 4715.2000 to 4715.2280.
24.24(b) Cross connections between a water supply used for filling pesticide application
24.25equipment are prohibited.
24.26(c) This subdivision does not apply to permitted applications of aquatic pesticides to
24.27public waters.

24.28    Sec. 31. Minnesota Statutes 2012, section 18B.07, subdivision 7, is amended to read:
24.29    Subd. 7. Cleaning equipment in or near surface water Pesticide handling
24.30restrictions. (a) A person may not:
24.31(1) clean pesticide application equipment in surface waters of the state; or
25.1(2) fill or clean pesticide application equipment adjacent to surface waters,
25.2ditches, or wells where, because of the slope or other conditions, pesticides or materials
25.3contaminated with pesticides could enter or contaminate the surface waters, groundwater,
25.4or wells, as a result of overflow, leakage, or other causes.
25.5(b) This subdivision does not apply to permitted application of aquatic pesticides to
25.6public waters.

25.7    Sec. 32. Minnesota Statutes 2012, section 18B.26, subdivision 3, is amended to read:
25.8    Subd. 3. Registration application and gross sales fee. (a) For an agricultural
25.9pesticide, a registrant shall pay an annual registration application fee for each agricultural
25.10pesticide of $350. The fee is due by December 31 preceding the year for which the
25.11application for registration is made. The fee is nonrefundable.
25.12(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual
25.13registration application fee for each nonagricultural pesticide of $350. The fee is due by
25.14December 31 preceding the year for which the application for registration is made. The
25.15fee is nonrefundable. The registrant of a nonagricultural pesticide shall pay, in addition to
25.16the $350 minimum fee, a fee of 0.5 percent of annual gross sales of the nonagricultural
25.17pesticide in the state and the annual gross sales of the nonagricultural pesticide sold into
25.18the state for use in this state. The commissioner may not assess a fee under this paragraph
25.19if the amount due based on percent of annual gross sales is less than $10 No fee is required
25.20if the fee due amount based on percent of annual gross sales of a nonagricultural pesticide
25.21is less than $10. The registrant shall secure sufficient sales information of nonagricultural
25.22pesticides distributed into this state from distributors and dealers, regardless of distributor
25.23location, to make a determination. Sales of nonagricultural pesticides in this state and
25.24sales of nonagricultural pesticides for use in this state by out-of-state distributors are not
25.25exempt and must be included in the registrant's annual report, as required under paragraph
25.26(g), and fees shall be paid by the registrant based upon those reported sales. Sales of
25.27nonagricultural pesticides in the state for use outside of the state are exempt from the
25.28gross sales fee in this paragraph if the registrant properly documents the sale location and
25.29distributors. A registrant paying more than the minimum fee shall pay the balance due by
25.30March 1 based on the gross sales of the nonagricultural pesticide by the registrant for the
25.31preceding calendar year. A pesticide determined by the commissioner to be a sanitizer or
25.32disinfectant is exempt from the gross sales fee.
25.33(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed
25.34pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the
26.1agricultural pesticide in the state and the annual gross sales of the agricultural pesticide
26.2sold into the state for use in this state.
26.3(d) In those cases where a registrant first sells an agricultural pesticide in or into the
26.4state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer
26.5license and is responsible for payment of the annual gross sales fee under paragraph (c),
26.6record keeping under paragraph (i), and all other requirements of section 18B.316.
26.7(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013,
26.8by the commissioner on the registration and sale of pesticides is less than $6,600,000, the
26.9commissioner, after a public hearing, may increase proportionally the pesticide sales and
26.10product registration fees under this chapter by the amount necessary to ensure this level
26.11of revenue is achieved. The authority under this section expires on June 30, 2014. The
26.12commissioner shall report any fee increases under this paragraph 60 days before the fee
26.13change is effective to the senate and house of representatives agriculture budget divisions.
26.14    (f) An additional fee of 50 percent of the registration application fee must be paid by
26.15the applicant for each pesticide to be registered if the application is a renewal application
26.16that is submitted after December 31.
26.17    (g) A registrant must annually report to the commissioner the amount, type and
26.18annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or
26.19otherwise distributed in the state. The report shall be filed by March 1 for the previous
26.20year's registration. The commissioner shall specify the form of the report or approve
26.21the method for submittal of the report and may require additional information deemed
26.22necessary to determine the amount and type of nonagricultural pesticide annually
26.23distributed in the state. The information required shall include the brand name, United
26.24States Environmental Protection Agency registration number, and amount of each
26.25nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but
26.26the information collected, if made public, shall be reported in a manner which does not
26.27identify a specific brand name in the report.
26.28(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually
26.29report to the commissioner the amount, type, and annual gross sales of each registered
26.30agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the
26.31state for use in the state. The report must be filed by January 31 for the previous year's
26.32sales. The commissioner shall specify the form, contents, and approved electronic method
26.33for submittal of the report and may require additional information deemed necessary to
26.34determine the amount and type of agricultural pesticide annually distributed within the
26.35state or into the state. The information required must include the brand name, United States
27.1Environmental Protection Agency registration number, and amount of each agricultural
27.2pesticide sold, offered for sale, or otherwise distributed in the state or into the state.
27.3(i) A person who registers a pesticide with the commissioner under paragraph (b),
27.4or a registrant under paragraph (d), shall keep accurate records for five years detailing
27.5all distribution or sales transactions into the state or in the state and subject to a fee and
27.6surcharge under this section.
27.7(j) The records are subject to inspection, copying, and audit by the commissioner
27.8and must clearly demonstrate proof of payment of all applicable fees and surcharges
27.9for each registered pesticide product sold for use in this state. A person who is located
27.10outside of this state must maintain and make available records required by this subdivision
27.11in this state or pay all costs incurred by the commissioner in the inspecting, copying, or
27.12auditing of the records.
27.13(k) The commissioner may adopt by rule regulations that require persons subject
27.14to audit under this section to provide information determined by the commissioner to be
27.15necessary to enable the commissioner to perform the audit.
27.16    (l) A registrant who is required to pay more than the minimum fee for any pesticide
27.17under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee
27.18paid after March 1 in the year for which the license is to be issued.

27.19    Sec. 33. Minnesota Statutes 2012, section 18B.305, is amended to read:
27.2018B.305 PESTICIDE EDUCATION AND TRAINING.
27.21    Subdivision 1. Education and training. (a) The commissioner, as the lead agency,
27.22 shall develop, implement or approve, and evaluate, in conjunction consultation with the
27.23 University of Minnesota Extension Service, the Minnesota State Colleges and Universities
27.24system, and other educational institutions, innovative educational and training programs
27.25addressing pesticide concerns including:
27.26(1) water quality protection;
27.27(2) endangered species protection;
27.28(3) minimizing pesticide residues in food and water;
27.29(4) worker protection and applicator safety;
27.30(5) chronic toxicity;
27.31(6) integrated pest management and pest resistance; and
27.32(7) pesticide disposal;
27.33(8) pesticide drift;
27.34(9) relevant laws including pesticide labels and labeling and state and federal rules
27.35and regulations; and
28.1(10) current science and technology updates.
28.2(b) The commissioner shall appoint educational planning committees which must
28.3include representatives of industry and applicators.
28.4(c) Specific current regulatory concerns must be discussed and, if appropriate,
28.5incorporated into each training session. Relevant changes to pesticide product labels or
28.6labeling or state and federal rules and regulations may be included.
28.7(d) The commissioner may approve programs from private industry, higher
28.8education institutions, and nonprofit organizations that meet minimum requirements for
28.9education, training, and certification.
28.10    Subd. 2. Training manual and examination development. The commissioner, in
28.11conjunction consultation with the University of Minnesota Extension Service and other
28.12higher education institutions, shall continually revise and update pesticide applicator
28.13training manuals and examinations. The manuals and examinations must be written to meet
28.14or exceed the minimum standards required by the United States Environmental Protection
28.15Agency and pertinent state specific information. Questions in the examinations must be
28.16determined by the commissioner in consultation with other responsible agencies. Manuals
28.17and examinations must include pesticide management practices that discuss prevention of
28.18pesticide occurrence in groundwaters groundwater and surface water of the state.

28.19    Sec. 34. Minnesota Statutes 2012, section 18B.316, subdivision 1, is amended to read:
28.20    Subdivision 1. Requirement. (a) A person must not distribute offer for sale or sell
28.21an agricultural pesticide in the state or into the state without first obtaining an agricultural
28.22pesticide dealer license.
28.23(b) Each location or place of business from which an agricultural pesticide is
28.24distributed offered for sale or sold in the state or into the state is required to have a
28.25separate agricultural pesticide dealer license.
28.26(c) A person who is a licensed pesticide dealer under section 18B.31 is not required
28.27to also be licensed under this subdivision.

28.28    Sec. 35. Minnesota Statutes 2012, section 18B.316, subdivision 3, is amended to read:
28.29    Subd. 3. Resident agent. A person required to be licensed under subdivisions 1
28.30and 2, or a person licensed as a pesticide dealer pursuant to section 18B.31 and who
28.31operates from a location or place of business outside the state and who distributes offers
28.32for sale or sells an agricultural pesticide into the state, must continuously maintain in
28.33this state the following:
28.34(1) a registered office; and
29.1(2) a registered agent, who may be either a resident of this state whose business
29.2office or residence is identical with the registered office under clause (1), a domestic
29.3corporation or limited liability company, or a foreign corporation of limited liability
29.4company authorized to transact business in this state and having a business office identical
29.5with the registered office.
29.6A person licensed under this section or section 18B.31 shall annually file with the
29.7commissioner, either at the time of initial licensing or as part of license renewal, the name,
29.8address, telephone number, and e-mail address of the licensee's registered agent.
29.9For licensees under section 18B.31 who are located in the state, the licensee is
29.10the registered agent.

29.11    Sec. 36. Minnesota Statutes 2012, section 18B.316, subdivision 4, is amended to read:
29.12    Subd. 4. Responsibility. The resident agent is responsible for the acts of a licensed
29.13agricultural pesticide dealer, or of a licensed pesticide dealer under section 18B.31 who
29.14operates from a location or place of business outside the state and who distributes offers
29.15for sale or sells an agricultural pesticide into the state, as well as the acts of the employees
29.16of those licensees.

29.17    Sec. 37. Minnesota Statutes 2012, section 18B.316, subdivision 8, is amended to read:
29.18    Subd. 8. Report of sales and payment to commissioner. A person who is an
29.19agricultural pesticide dealer, or is a licensed pesticide dealer under section 18B.31, who
29.20distributes offers for sale or sells an agricultural pesticide in or into the state, and a
29.21pesticide registrant pursuant to section 18B.26, subdivision 3, paragraph (d), shall no
29.22later than January 31 of each year report and pay applicable fees on annual gross sales
29.23of agricultural pesticides to the commissioner pursuant to requirements under section
29.2418B.26, subdivision 3 , paragraphs (c) and (h).

29.25    Sec. 38. Minnesota Statutes 2012, section 18B.316, subdivision 9, is amended to read:
29.26    Subd. 9. Application. (a) A person must apply to the commissioner for an
29.27agricultural pesticide dealer license on forms and in a manner approved by the
29.28commissioner.
29.29(b) The applicant must be the person in charge of each location or place of business
29.30from which agricultural pesticides are distributed offered for sale or sold in or into the state.
29.31(c) The commissioner may require that the applicant provide information regarding
29.32the applicant's proposed operations and other information considered pertinent by the
29.33commissioner.
30.1(d) The commissioner may require additional demonstration of licensee qualification
30.2if the licensee has had a license suspended or revoked, or has otherwise had a history of
30.3violations in another state or violations of this chapter.
30.4(e) A licensed agricultural pesticide dealer who changes the dealer's address or place
30.5of business must immediately notify the commissioner of the change.
30.6(f) Beginning January 1, 2011, an application for renewal of an agricultural pesticide
30.7dealer license is complete only when a report and any applicable payment of fees under
30.8subdivision 8 are received by the commissioner.

30.9    Sec. 39. Minnesota Statutes 2012, section 18B.37, subdivision 4, is amended to read:
30.10    Subd. 4. Storage, handling, Incident response, and disposal plan. A pesticide
30.11dealer, agricultural pesticide dealer, or a commercial, noncommercial, or structural pest
30.12control applicator or the business that the applicator is employed by business must develop
30.13and maintain a an incident response plan that describes its pesticide storage, handling,
30.14incident response, and disposal practices the actions that will be taken to prevent and
30.15respond to pesticide incidents. The plan must contain the same information as forms
30.16provided by the commissioner. The plan must be kept at a principal business site or location
30.17within this state and must be submitted to the commissioner upon request on forms provided
30.18by the commissioner. The plan must be available for inspection by the commissioner.

30.19    Sec. 40. Minnesota Statutes 2012, section 18C.111, subdivision 4, is amended to read:
30.20    Subd. 4. Certification of regulatory compliance. (a) The commissioner may,
30.21under rules adopted under section 18C.121, subdivision 1, certify a person to offer or
30.22perform a regulatory compliance inspection of any person or site that stores, handles, or
30.23distributes ammonia or anhydrous ammonia fertilizer. The deadlines established in section
30.2414.125, are extended until June 30, 2014, for rules adopted under this subdivision.
30.25(b) Pursuant to those rules, a person certified under paragraph (a) may issue a
30.26certification of compliance to an inspected person or site if the certified person documents
30.27in writing full compliance with the provisions of this chapter and rules adopted under
30.28this chapter.
30.29(c) A person or site issued a certification of compliance must provide a copy of the
30.30certification to the commissioner immediately upon request or within 90 days following
30.31certification.
30.32(d) Certifications of compliance are valid for a period of three years. The
30.33commissioner may determine a different time period in the interest of public safety or for
30.34other reasonable cause.

31.1    Sec. 41. Minnesota Statutes 2012, section 18C.430, is amended to read:
31.218C.430 COMMERCIAL ANIMAL WASTE TECHNICIAN.
31.3    Subdivision 1. Requirement. (a) Except as provided in paragraph (c), after March
31.41, 2000, A person may not manage or apply animal wastes to the land for hire without a
31.5valid commercial animal waste technician license. This section does not apply to a person
31.6managing or applying animal waste on land managed by the person's employer.:
31.7(1) without a valid commercial animal waste technician applicator license;
31.8(2) without a valid commercial animal waste technician site manager license; or
31.9(3) as a sole proprietorship, company, partnership, or corporation unless a
31.10commercial animal waste technician company license is held and a commercial animal
31.11waste technical site manager is employed by the entity.
31.12(b) A person managing or applying animal wastes for hire must have a valid
31.13license identification card when managing or applying animal wastes for hire and must
31.14display it upon demand by an authorized representative of the commissioner or a law
31.15enforcement officer. The commissioner shall prescribe the information required on the
31.16license identification card.
31.17(c) A person who is not a licensed commercial animal waste technician who has had
31.18at least two hours of training or experience in animal waste management may manage
31.19or apply animal waste for hire under the supervision of a commercial animal waste
31.20technician. A commercial animal waste technician applicator must have a minimum of
31.21two hours of certification training in animal waste management and may only manage or
31.22apply animal waste for hire under the supervision of a commercial animal waste technician
31.23site manager. The commissioner shall prescribe the conditions of the supervision and the
31.24form and format required on the certification training.
31.25(d) This section does not apply to a person managing or applying animal waste on
31.26land managed by the person's employer.
31.27    Subd. 2. Responsibility. A person required to be licensed under this section who
31.28performs animal waste management or application for hire or who employs a person to
31.29perform animal waste management or application for compensation is responsible for
31.30proper management or application of the animal wastes.
31.31    Subd. 3. License. (a) A commercial animal waste technician license, including
31.32applicator, site manager, and company:
31.33(1) is valid for three years one year and expires on December 31 of the third year for
31.34which it is issued, unless suspended or revoked before that date;
31.35(2) is not transferable to another person; and
32.1(3) must be prominently displayed to the public in the commercial animal waste
32.2technician's place of business.
32.3(b) The commercial animal waste technician company license number assigned by
32.4the commissioner must appear on the application equipment when a person manages
32.5or applies animal waste for hire.
32.6    Subd. 4. Application. (a) A person must apply to the commissioner for a commercial
32.7animal waste technician license on forms and in the manner required by the commissioner
32.8and must include the application fee. The commissioner shall prescribe and administer
32.9an examination or equivalent measure to determine if the applicant is eligible for the
32.10commercial animal waste technician license, site manager license, or applicator license.
32.11(b) The commissioner of agriculture, in cooperation with the University of
32.12Minnesota Extension Service and appropriate educational institutions, shall establish and
32.13implement a program for training and licensing commercial animal waste technicians.
32.14    Subd. 5. Renewal application. (a) A person must apply to the commissioner of
32.15agriculture to renew a commercial animal waste technician license and must include the
32.16application fee. The commissioner may renew a commercial animal waste technician
32.17applicator or site manager license, subject to reexamination, attendance at workshops
32.18approved by the commissioner, or other requirements imposed by the commissioner to
32.19provide the animal waste technician with information regarding changing technology and
32.20to help ensure a continuing level of competence and ability to manage and apply animal
32.21wastes properly. The applicant may renew a commercial animal waste technician license
32.22within 12 months after expiration of the license without having to meet initial testing
32.23requirements. The commissioner may require additional demonstration of animal waste
32.24technician qualification if a person has had a license suspended or revoked or has had a
32.25history of violations of this section.
32.26(b) An applicant who meets renewal requirements by reexamination instead
32.27of attending workshops must pay a fee for the reexamination as determined by the
32.28commissioner.
32.29    Subd. 6. Financial responsibility. (a) A commercial animal waste technician
32.30license may not be issued unless the applicant furnishes proof of financial responsibility.
32.31The financial responsibility may be demonstrated by (1) proof of net assets equal to or
32.32greater than $50,000, or (2) a performance bond or insurance of the kind and in an amount
32.33determined by the commissioner of agriculture.
32.34(b) The bond or insurance must cover a period of time at least equal to the term of
32.35the applicant's license. The commissioner shall immediately suspend the license of a
32.36person who fails to maintain the required bond or insurance.
33.1(c) An employee of a licensed person is not required to maintain an insurance policy
33.2or bond during the time the employer is maintaining the required insurance or bond.
33.3(d) Applications for reinstatement of a license suspended under paragraph (b) must
33.4be accompanied by proof of satisfaction of judgments previously rendered.
33.5    Subd. 7. Application fee. (a) A person initially applying for or renewing
33.6a commercial animal waste technician applicator license must pay a nonrefundable
33.7application fee of $50 and a fee of $10 for each additional identification card requested.
33.8 $25. A person initially applying for or renewing a commercial animal waste technician
33.9site manager license must pay a nonrefundable application fee of $50. A person initially
33.10applying for or renewing a commercial animal waste technician company license must
33.11pay a nonrefundable application fee of $100.
33.12(b) A license renewal application received after March 1 in the year for which the
33.13license is to be issued is subject to a penalty fee of 50 percent of the application fee. The
33.14penalty fee must be paid before the renewal license may be issued.
33.15(c) An application for a duplicate commercial animal waste technician license must
33.16be accompanied by a nonrefundable fee of $10.

33.17    Sec. 42. Minnesota Statutes 2012, section 18C.433, subdivision 1, is amended to read:
33.18    Subdivision 1. Requirement. Beginning January 1, 2006, only a commercial
33.19animal waste technician, site manager or commercial animal waste technician applicator
33.20 may apply animal waste from a feedlot that:
33.21(1) has a capacity of 300 animal units or more; and
33.22(2) does not have an updated manure management plan that meets the requirements
33.23of Pollution Control Agency rules.

33.24    Sec. 43. Minnesota Statutes 2012, section 31.94, is amended to read:
33.2531.94 COMMISSIONER DUTIES.
33.26(a) In order to promote opportunities for organic agriculture in Minnesota, the
33.27commissioner shall:
33.28(1) survey producers and support services and organizations to determine
33.29information and research needs in the area of organic agriculture practices;
33.30(2) work with the University of Minnesota to demonstrate the on-farm applicability
33.31of organic agriculture practices to conditions in this state;
33.32(3) direct the programs of the department so as to work toward the promotion of
33.33organic agriculture in this state;
34.1(4) inform agencies of how state or federal programs could utilize and support
34.2organic agriculture practices; and
34.3(5) work closely with producers, the University of Minnesota, the Minnesota Trade
34.4Office, and other appropriate organizations to identify opportunities and needs as well
34.5as ensure coordination and avoid duplication of state agency efforts regarding research,
34.6teaching, marketing, and extension work relating to organic agriculture.
34.7(b) By November 15 of each year that ends in a zero or a five, the commissioner,
34.8in conjunction with the task force created in paragraph (c), shall report on the status of
34.9organic agriculture in Minnesota to the legislative policy and finance committees and
34.10divisions with jurisdiction over agriculture. The report must include available data on
34.11organic acreage and production, available data on the sales or market performance of
34.12organic products, and recommendations regarding programs, policies, and research efforts
34.13that will benefit Minnesota's organic agriculture sector.
34.14(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the
34.15University of Minnesota on policies and programs that will improve organic agriculture in
34.16Minnesota, including how available resources can most effectively be used for outreach,
34.17education, research, and technical assistance that meet the needs of the organic agriculture
34.18community. The task force must consist of the following residents of the state:
34.19(1) three organic farmers using organic agriculture methods;
34.20(2) one wholesaler or distributor of organic products;
34.21(3) one representative of organic certification agencies;
34.22(4) two organic processors;
34.23(5) one representative from University of Minnesota Extension;
34.24(6) one University of Minnesota faculty member;
34.25(7) one representative from a nonprofit organization representing producers;
34.26(8) two public members;
34.27(9) one representative from the United States Department of Agriculture;
34.28(10) one retailer of organic products; and
34.29(11) one organic consumer representative.
34.30The commissioner, in consultation with the director of the Minnesota Agricultural
34.31Experiment Station; the dean and director of University of Minnesota Extension; and the
34.32dean of the College of Food, Agricultural and Natural Resource Sciences, shall appoint
34.33members to serve staggered two-year three-year terms.
34.34Compensation and removal of members are governed by section 15.059, subdivision
34.356
. The task force must meet at least twice each year and expires on June 30, 2013 2016.
35.1(d) For the purposes of expanding, improving, and developing production and
35.2marketing of the organic products of Minnesota agriculture, the commissioner may
35.3receive funds from state and federal sources and spend them, including through grants or
35.4contracts, to assist producers and processors to achieve certification, to conduct education
35.5or marketing activities, to enter into research and development partnerships, or to address
35.6production or marketing obstacles to the growth and well-being of the industry.
35.7(e) The commissioner may facilitate the registration of state organic production
35.8and handling operations including those exempt from organic certification according to
35.9Code of Federal Regulations, title 7, section 205.101, and certification agents operating
35.10within the state.

35.11    Sec. 44. Minnesota Statutes 2012, section 41A.10, subdivision 2, is amended to read:
35.12    Subd. 2. Cellulosic biofuel production goal. The state cellulosic biofuel production
35.13goal is one-quarter of the total amount necessary for ethanol biofuel use required under
35.14section 239.791, subdivision 1a 1, by 2015 or when cellulosic biofuel facilities in the state
35.15attain a total annual production level of 60,000,000 gallons, whichever is first.

35.16    Sec. 45. Minnesota Statutes 2012, section 41A.10, is amended by adding a subdivision
35.17to read:
35.18    Subd. 3. Expiration. This section expires January 1, 2015.

35.19    Sec. 46. Minnesota Statutes 2012, section 41A.105, subdivision 1a, is amended to read:
35.20    Subd. 1a. Definitions. For the purpose of this section:
35.21    (1) "biobased content" means a chemical, polymer, monomer, or plastic that is not
35.22sold primarily for use as food, feed, or fuel and that has a biobased percentage of at least
35.2351 percent as determined by testing representative samples using American Society for
35.24Testing and Materials specification D6866;
35.25    (2) "biobased formulated product" means a product that is not sold primarily for use
35.26as food, feed, or fuel and that has a biobased content percentage of at least ten percent
35.27as determined by testing representative samples using American Society for Testing
35.28and Materials specification D6866, or that contains a biobased chemical constituent
35.29that displaces a known hazardous or toxic constituent previously used in the product
35.30formulation;
35.31    (1) (3) "biobutanol facility" means a facility at which biobutanol is produced; and
35.32    (2) (4) "biobutanol" means fermentation isobutyl alcohol that is derived from
35.33agricultural products, including potatoes, cereal grains, cheese whey, and sugar beets;
36.1forest products; or other renewable resources, including residue and waste generated
36.2from the production, processing, and marketing of agricultural products, forest products,
36.3and other renewable resources.

36.4    Sec. 47. Minnesota Statutes 2012, section 41A.105, subdivision 3, is amended to read:
36.5    Subd. 3. Duties. The board shall research and report to the commissioner of
36.6agriculture and to the legislature recommendations as to how the state can invest its
36.7resources to most efficiently achieve energy independence, agricultural and natural
36.8resources sustainability, and rural economic vitality. The board shall:
36.9    (1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen,
36.10methanol, biodiesel, and ethanol within Minnesota;
36.11    (2) examine the opportunity for biobased content and biobased formulated product
36.12production at integrated biorefineries or stand alone facilities using agricultural and
36.13forestry feedstocks;
36.14    (2) (3) develop equity grant programs to assist locally owned facilities;
36.15    (3) (4) study the proper role of the state in creating financing and investing and
36.16providing incentives;
36.17    (4) (5) evaluate how state and federal programs, including the Farm Bill, can best
36.18work together and leverage resources;
36.19    (5) (6) work with other entities and committees to develop a clean energy program;
36.20and
36.21    (6) (7) report to the legislature before February 1 each year with recommendations
36.22as to appropriations and results of past actions and projects.

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

36.25    Sec. 49. Minnesota Statutes 2012, section 41A.12, subdivision 3, is amended to read:
36.26    Subd. 3. Oversight. The commissioner, in consultation with the chairs and ranking
36.27minority members of the house of representatives and senate committees with jurisdiction
36.28over agriculture finance, must allocate available funds among eligible uses, develop
36.29competitive eligibility criteria, and award funds on a needs basis. By February 1 each
36.30year, the commissioner shall report to the legislature on the allocation among eligible uses
36.31and any financial assistance provided under this section.

37.1    Sec. 50. Minnesota Statutes 2012, section 41A.12, is amended by adding a subdivision
37.2to read:
37.3    Subd. 3a. Grant awards. Grant projects may continue for up to three years.
37.4Multiyear projects must be reevaluated by the commissioner before second- and third-year
37.5funding is approved. A project is limited to one grant for its funding.

37.6    Sec. 51. Minnesota Statutes 2012, section 41B.04, subdivision 9, is amended to read:
37.7    Subd. 9. Restructured loan agreement. (a) For a deferred restructured loan, all
37.8payments on the primary and secondary principal, all payments of interest on the secondary
37.9principal, and an agreed portion of the interest payable to the eligible agricultural lender
37.10on the primary principal must be deferred to the end of the term of the loan.
37.11(b) Interest on secondary principal must accrue at a below market interest rate.
37.12(c) At the conclusion of the term of the restructured loan, the borrower owes primary
37.13principal, secondary principal, and deferred interest on primary and secondary principal.
37.14However, part of this balloon payment may be forgiven following an appraisal by the
37.15lender and the authority to determine the current market value of the real estate subject to
37.16the mortgage. If the current market value of the land after appraisal is less than the amount
37.17of debt owed by the borrower to the lender and authority on this obligation, that portion of
37.18the obligation that exceeds the current market value of the real property must be forgiven
37.19by the lender and the authority in the following order:
37.20(1) deferred interest on secondary principal;
37.21(2) secondary principal;
37.22(3) deferred interest on primary principal;
37.23(4) primary principal as provided in an agreement between the authority and the
37.24lender; and
37.25(5) accrued but not deferred interest on primary principal.
37.26(d) For an amortized restructured loan, payments must include installments on
37.27primary principal and interest on the primary principal. An amortized restructured loan
37.28must be amortized over a time period and upon terms to be established by the authority by
37.29rule.
37.30(e) A borrower may prepay the restructured loan, with all primary and secondary
37.31principal and interest and deferred interest at any time without prepayment penalty.
37.32(f) The authority may not participate in refinancing a restructured loan at the
37.33conclusion of the restructured loan.

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

38.2    Sec. 53. Minnesota Statutes 2012, section 116J.437, subdivision 1, is amended to read:
38.3    Subdivision 1. Definitions. (a) For the purpose of this section, the following terms
38.4have the meanings given.
38.5    (b) "Green economy" means products, processes, methods, technologies, or services
38.6intended to do one or more of the following:
38.7    (1) increase the use of energy from renewable sources, including through achieving
38.8the renewable energy standard established in section 216B.1691;
38.9    (2) achieve the statewide energy-savings goal established in section 216B.2401,
38.10including energy savings achieved by the conservation investment program under section
38.11216B.241 ;
38.12    (3) achieve the greenhouse gas emission reduction goals of section 216H.02,
38.13subdivision 1, including through reduction of greenhouse gas emissions, as defined in
38.14section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through,
38.15but not limited to, carbon capture, storage, or sequestration;
38.16    (4) monitor, protect, restore, and preserve the quality of surface waters, including
38.17actions to further the purposes of the Clean Water Legacy Act as provided in section
38.18114D.10, subdivision 1 ;
38.19    (5) expand the use of biofuels, including by expanding the feasibility or reducing the
38.20cost of producing biofuels or the types of equipment, machinery, and vehicles that can
38.21use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections
38.2241A.10, subdivision 2, and 41A.11 petroleum replacement goal in section 239.7911; or
38.23    (6) increase the use of green chemistry, as defined in section 116.9401.
38.24For the purpose of clause (3), "green economy" includes strategies that reduce carbon
38.25emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass
38.26transit or otherwise reducing commuting for employees.

38.27    Sec. 54. Minnesota Statutes 2012, section 223.17, is amended by adding a subdivision
38.28to read:
38.29    Subd. 7a. Bond requirements; claims. For entities licensed under this chapter
38.30and chapter 232, the bond requirements and claims against the bond are governed under
38.31section 232.22, subdivision 6a.

38.32    Sec. 55. Minnesota Statutes 2012, section 232.22, is amended by adding a subdivision
38.33to read:
39.1    Subd. 6a. Bond determinations. If a public grain warehouse operator is licensed
39.2under both this chapter and chapter 223, the warehouse shall have its bond determined
39.3by its gross annual grain purchase amount or its annual average grain storage value,
39.4whichever is greater. For those entities licensed under this chapter and chapter 223, the
39.5entire bond shall be available to any claims against the bond for claims filed under this
39.6chapter and chapter 223.

39.7    Sec. 56. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
39.8to read:
39.9    Subd. 1a. Advanced biofuel. "Advanced biofuel" has the meaning given in Public
39.10Law 110-140, title 2, subtitle A, section 201.

39.11    Sec. 57. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
39.12to read:
39.13    Subd. 5a. Biofuel. "Biofuel" means a renewable fuel with an approved pathway
39.14under authority of the federal Energy Policy Act of 2005, Public Law 109-58, as amended
39.15by the federal Energy Independence and Security Act of 2007, Public Law 110–140,
39.16and approved for sale by the United States Environmental Protection Agency. The term
39.17"biofuel" includes both advanced and conventional biofuels.

39.18    Sec. 58. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
39.19to read:
39.20    Subd. 7a. Conventional biofuel. "Conventional biofuel" means ethanol derived
39.21from cornstarch, as defined in Public Law 110-140, title 2, subtitle A, section 201.

39.22    Sec. 59. Minnesota Statutes 2012, section 239.761, subdivision 3, is amended to read:
39.23    Subd. 3. Gasoline. (a) Gasoline that is not blended with ethanol biofuel must not be
39.24contaminated with water or other impurities and must comply with ASTM specification
39.25D4814-08b. Gasoline that is not blended with ethanol biofuel must also comply with the
39.26volatility requirements in Code of Federal Regulations, title 40, part 80.
39.27(b) After gasoline is sold, transferred, or otherwise removed from a refinery or
39.28terminal, a person responsible for the product:
39.29(1) may blend the gasoline with agriculturally derived ethanol as provided in
39.30subdivision 4;
39.31(2) shall not blend the gasoline with any oxygenate other than denatured,
39.32agriculturally derived ethanol biofuel;
40.1(3) shall not blend the gasoline with other petroleum products that are not gasoline
40.2or denatured, agriculturally derived ethanol biofuel;
40.3(4) shall not blend the gasoline with products commonly and commercially known
40.4as casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or
40.5natural gasoline; and
40.6(5) may blend the gasoline with a detergent additive, an antiknock additive, or an
40.7additive designed to replace tetra-ethyl lead, that is registered by the EPA.

40.8    Sec. 60. Minnesota Statutes 2012, section 239.791, subdivision 1, is amended to read:
40.9    Subdivision 1. Minimum ethanol biofuel content required. (a) Except as provided
40.10in subdivisions 10 to 14, a person responsible for the product shall ensure that all gasoline
40.11sold or offered for sale in Minnesota must contain at least the quantity of ethanol biofuel
40.12 required by clause (1) or (2), whichever is greater at the option of the person responsible
40.13for the product:
40.14(1) the greater of:
40.15(i) 10.0 percent denatured ethanol conventional biofuel by volume; or
40.16(2) (ii) the maximum percent of denatured ethanol conventional biofuel by volume
40.17authorized in a waiver granted by the United States Environmental Protection Agency; or
40.18(2) 10.0 percent of a biofuel, other than a conventional biofuel, by volume authorized
40.19in a waiver granted by the United States Environmental Protection Agency or a biofuel
40.20formulation registered by the United States Environmental Protection Agency under
40.21United States Code, title 42, section 7545.
40.22(b) For purposes of enforcing the minimum ethanol requirement of paragraph (a),
40.23clause (1), item (i), a gasoline/ethanol gasoline/biofuel blend will be construed to be in
40.24compliance if the ethanol biofuel content, exclusive of denaturants and other permitted
40.25components, comprises not less than 9.2 percent by volume and not more than 10.0 percent
40.26by volume of the blend as determined by an appropriate United States Environmental
40.27Protection Agency or American Society of Testing Materials standard method of analysis
40.28of alcohol/ether content in engine fuels.
40.29(c) The provisions of this subdivision are suspended during any period of time that
40.30subdivision 1a, paragraph (a), is in effect. The aggregate amount of biofuel blended
40.31pursuant to this subdivision may be any biofuel; however, conventional biofuel must
40.32comprise no less than the portion specified on and after the specified dates:
40.33
(1)
July 1, 2013
90 percent
40.34
(2)
January 1, 2015
80 percent
40.35
(3)
January 1, 2017
70 percent
41.1
(4)
January 1, 2020
60 percent
41.2
(5)
January 1, 2025
no minimum

41.3    Sec. 61. Minnesota Statutes 2012, section 239.791, subdivision 2a, is amended to read:
41.4    Subd. 2a. Federal Clean Air Act waivers; conditions. (a) Before a waiver granted
41.5by the United States Environmental Protection Agency under section 211(f)(4) of the
41.6Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4),
41.7 may alter the minimum content level required by subdivision 1, paragraph (a), clause (2),
41.8or subdivision 1a, paragraph (a), clause (2) (1), item (ii), the waiver must:
41.9(1) apply to all gasoline-powered motor vehicles irrespective of model year; and
41.10(2) allow for special regulatory treatment of Reid vapor pressure under Code of
41.11Federal Regulations, title 40, section 80.27, paragraph (d), for blends of gasoline and
41.12ethanol up to the maximum percent of denatured ethanol by volume authorized under
41.13the waiver.
41.14(b) The minimum ethanol biofuel requirement in subdivision 1, paragraph (a), clause
41.15(2), or subdivision 1a, paragraph (a), clause (2), (1), item (ii), shall, upon the grant of the
41.16federal waiver, be effective the day after the commissioner of commerce publishes notice
41.17in the State Register. In making this determination, the commissioner shall consider the
41.18amount of time required by refiners, retailers, pipeline and distribution terminal companies,
41.19and other fuel suppliers, acting expeditiously, to make the operational and logistical changes
41.20required to supply fuel in compliance with the minimum ethanol biofuel requirement.

41.21    Sec. 62. Minnesota Statutes 2012, section 239.791, subdivision 2b, is amended to read:
41.22    Subd. 2b. Limited liability waiver. No motor fuel shall be deemed to be a defective
41.23product by virtue of the fact that the motor fuel is formulated or blended pursuant to
41.24the requirements of subdivision 1, paragraph (a), clause (2), or subdivision 1a (1), item
41.25(ii), under any theory of liability except for simple or willful negligence or fraud. This
41.26subdivision does not preclude an action for negligent, fraudulent, or willful acts. This
41.27subdivision does not affect a person whose liability arises under chapter 115, water
41.28pollution control; 115A, waste management; 115B, environmental response and liability;
41.29115C, leaking underground storage tanks; or 299J, pipeline safety; under public nuisance
41.30law for damage to the environment or the public health; under any other environmental or
41.31public health law; or under any environmental or public health ordinance or program of a
41.32municipality as defined in section 466.01.

41.33    Sec. 63. Minnesota Statutes 2012, section 239.7911, is amended to read:
42.1239.7911 PETROLEUM REPLACEMENT PROMOTION.
42.2    Subdivision 1. Petroleum replacement goal. The tiered petroleum replacement
42.3goal of the state of Minnesota is that biofuel comprises at least the specified portion of
42.4total gasoline sold or offered for sale in this state by each specified year:
42.5    (1) at least 20 percent of the liquid fuel sold in the state is derived from renewable
42.6sources by December 31, 2015; and
42.7    (2) at least 25 percent of the liquid fuel sold in the state is derived from renewable
42.8sources by December 31, 2025.
42.9
(1)
2015
14 percent
42.10
(2)
2017
18 percent
42.11
(3)
2020
25 percent
42.12
(4)
2025
30 percent
42.13    Subd. 2. Promotion of renewable liquid fuels. (a) The commissioner of agriculture,
42.14in consultation with the commissioners of commerce and the Pollution Control Agency,
42.15shall identify and implement activities necessary for the widespread use of renewable
42.16liquid fuels in the state to achieve the goals in subdivision 1. Beginning November
42.171, 2005, and continuing through 2015, the commissioners, or their designees, shall
42.18work with convene a task force pursuant to section 15.014 that includes representatives
42.19from the renewable fuels industry, petroleum retailers, refiners, automakers, small
42.20engine manufacturers, and other interested groups, to. The task force shall assist the
42.21commissioners in carrying out the activities in paragraph (b) and eliminating barriers to the
42.22use of greater biofuel blends in this state. The task force must coordinate efforts with the
42.23NextGen Energy Board, the biodiesel task force, and the Renewable Energy Roundtable
42.24and develop annual recommendations for administrative and legislative action.
42.25    (b) The activities of the commissioners under this subdivision shall include, but not
42.26be limited to:
42.27    (1) developing recommendations for specific, cost-effective incentives necessary
42.28to expedite the use of greater biofuel blends in this state including, but not limited to,
42.29incentives for retailers to install equipment necessary for dispensing to dispense renewable
42.30liquid fuels to the public;
42.31    (2) expanding the renewable-fuel options available to Minnesota consumers by
42.32obtaining federal approval for the use of E20 and additional blends that contain a greater
42.33percentage of ethanol, including but not limited to E30 and E50, as gasoline biofuel;
42.34    (3) developing recommendations for ensuring to ensure that motor vehicles and
42.35small engine equipment have access to an adequate supply of fuel;
43.1    (4) working with the owners and operators of large corporate automotive fleets in the
43.2state to increase their use of renewable fuels; and
43.3    (5) working to maintain an affordable retail price for liquid fuels;
43.4    (6) facilitating the production and use of advanced biofuels in this state; and
43.5    (7) developing procedures for reporting the amount and type of biofuel under
43.6subdivision 1 and section 239.791, subdivision 1, paragraph (c).
43.7    (c) Notwithstanding section 15.014, the task force required under paragraph (a)
43.8expires on December 31, 2015.

43.9    Sec. 64. Minnesota Statutes 2012, section 296A.01, is amended by adding a
43.10subdivision to read:
43.11    Subd. 8b. Biobutanol. "Biobutanol" means isobutyl alcohol produced by
43.12fermenting agriculturally generated organic material that is to be blended with gasoline
43.13and meets either:
43.14    (1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline
43.15for Use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM
43.16for general distribution; or
43.17    (2) in the absence of an ASTM standard specification, the following list of
43.18requirements:
43.19    (i) visually free of sediment and suspended matter;
43.20    (ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient
43.21temperature, whichever is higher;
43.22    (iii) free of any adulterant or contaminant that can render it unacceptable for its
43.23commonly used applications;
43.24    (iv) contains not less than 96 volume percent isobutyl alcohol;
43.25    (v) contains not more than 0.4 volume percent methanol;
43.26    (vi) contains not more than 1.0 volume percent water as determined by ASTM
43.27standard test method E203 or E1064;
43.28    (vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined
43.29by ASTM standard test method D1613;
43.30    (viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters
43.31as determined by ASTM standard test method D381;
43.32    (ix) sulfur content of not more than 30 parts per million as determined by ASTM
43.33standard test method D2622 or D5453; and
43.34    (x) contains not more than four parts per million total inorganic sulfate.

44.1    Sec. 65. Minnesota Statutes 2012, section 583.215, is amended to read:
44.2583.215 EXPIRATION.
44.3 Sections 336.9-601, subsections (h) and (i); 550.365; 559.209; 582.039; and 583.20
44.4to 583.32, expire June 30, 2013 2016.
44.5EFFECTIVE DATE.This section is effective the day following final enactment.

44.6    Sec. 66. WASTE PESTICIDE REPORTING; 2013, 2014, AND 2015.
44.7Notwithstanding the recording and reporting requirements of Minnesota Statutes,
44.8section 18B.065, subdivision 2a, paragraph (d), persons are not required to record or
44.9report agricultural or nonagricultural waste pesticide collected after the effective date of
44.10this section in 2013, 2014, and 2015. The commissioner of agriculture shall analyze
44.11existing collection data to identify trends that will inform future collection strategies to
44.12better meet the needs and nature of current waste pesticide streams. By January 15, 2015,
44.13the commissioner shall report analysis, recommendations, and proposed policy changes
44.14to this program to legislative committees and divisions with jurisdiction over agriculture
44.15finance and policy.
44.16EFFECTIVE DATE.This section is effective the day following final enactment.

44.17    Sec. 67. POLLINATOR REPORT REQUIRED.
44.18No later than January 15, 2014, the commissioner of agriculture must submit
44.19a pollinator report to the legislative committees and divisions with jurisdiction over
44.20agriculture and natural resources. The commissioner of agriculture must develop the
44.21report in consultation with the commissioners of natural resources and the Pollution
44.22Control Agency, the Board of Water and Soil Resources, and representatives of the
44.23University of Minnesota. The report must include, but is not limited to, the following:
44.24(1) a proposal to establish a pollinator bank to preserve pollinator species diversity;
44.25(2) a proposal to efficiently and effectively create and enhance pollinator nesting and
44.26foraging habitat in this state including establishment of pollinator reserves or refuges; and
44.27(3) the process and criteria the commissioner of agriculture would use to perform a
44.28special review of neonicotinoid pesticides registered by the commissioner for use in this
44.29state currently and in the future.

44.30    Sec. 68. REVISOR'S INSTRUCTION.
44.31The revisor of statutes shall renumber Minnesota Statutes, section 18B.01,
44.32subdivision 4a, as subdivision 4b and correct any cross-references.

45.1    Sec. 69. REPEALER.
45.2Minnesota Statutes 2012, sections 18.91, subdivisions 3 and 5; 18B.07, subdivision
45.36; and 239.791, subdivision 1a, are repealed.

45.4ARTICLE 3
45.5ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS

45.6
Section 1. SUMMARY OF APPROPRIATIONS.
45.7    The amounts shown in this section summarize direct appropriations, by fund, made
45.8in this article.
45.9
2014
2015
Total
45.10
General
$
87,641,000
$
92,690,000
$
180,331,000
45.11
45.12
State Government Special
Revenue
75,000
75,000
150,000
45.13
Environmental
68,836,000
68,982,000
137,818,000
45.14
Natural Resources
89,906,000
89,606,000
179,512,000
45.15
Game and Fish
91,372,000
91,372,000
182,744,000
45.16
Remediation
10,596,000
10,596,000
21,192,000
45.17
Permanent School
200,000
200,000
400,000
45.18
Total
$
348,626,000
$
353,521,000
$
702,147,000

45.19
Sec. 2. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.
45.20    The sums shown in the columns marked "Appropriations" are appropriated to the
45.21agencies and for the purposes specified in this article. The appropriations are from the
45.22general fund, or another named fund, and are available for the fiscal years indicated
45.23for each purpose. The figures "2014" and "2015" used in this article mean that the
45.24appropriations listed under them are available for the fiscal year ending June 30, 2014, or
45.25June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
45.26year 2015. "The biennium" is fiscal years 2014 and 2015. Appropriations for the fiscal
45.27year ending June 30, 2013, are effective the day following final enactment.
45.28
APPROPRIATIONS
45.29
Available for the Year
45.30
Ending June 30
45.31
2014
2015

45.32
Sec. 3. POLLUTION CONTROL AGENCY
45.33
Subdivision 1.Total Appropriation
$
84,171,000
$
84,316,000
45.34
Appropriations by Fund
45.35
2014
2015
45.36
General
4,764,000
4,763,000
46.1
46.2
State Government
Special Revenue
75,000
75,000
46.3
Environmental
68,836,000
68,982,000
46.4
Remediation
10,496,000
10,496,000
46.5The amounts that may be spent for each
46.6purpose are specified in the following
46.7subdivisions.
46.8
Subd. 2.Water
25,453,000
25,454,000
46.9
Appropriations by Fund
46.10
General
3,737,000
3,737,000
46.11
46.12
State Government
Special Revenue
75,000
75,000
46.13
Environmental
21,641,000
21,642,000
46.14$1,959,000 the first year and $1,959,000
46.15the second year are for grants to delegated
46.16counties to administer the county feedlot
46.17program under Minnesota Statutes, section
46.18116.0711, subdivisions 2 and 3. By January
46.1915, 2016, the commissioner shall submit a
46.20report detailing the results achieved with
46.21this appropriation to the chairs and ranking
46.22minority members at the senate and house
46.23of representatives committees and divisions
46.24with jurisdiction over environment and
46.25natural resources policy and finance. Money
46.26remaining after the first year is available for
46.27the second year.
46.28$740,000 the first year and $740,000 the
46.29second year are from the environmental
46.30fund to address the need for continued
46.31increased activity in the areas of new
46.32technology review, technical assistance
46.33for local governments, and enforcement
46.34under Minnesota Statutes, sections 115.55
46.35to 115.58, and to complete the requirements
47.1of Laws 2003, chapter 128, article 1, section
47.2165.
47.3$400,000 the first year and $400,000
47.4the second year are for the clean water
47.5partnership program. Any unexpended
47.6balance in the first year does not cancel but
47.7is available in the second year. Priority shall
47.8be given to projects preventing impairments
47.9and degradation of lakes, rivers, streams,
47.10and groundwater according to Minnesota
47.11Statutes, section 114D.20, subdivision 2,
47.12clause (4).
47.13$664,000 the first year and $664,000 the
47.14second year are from the environmental
47.15fund for subsurface sewage treatment
47.16system (SSTS) program administration
47.17and community technical assistance and
47.18education, including grants and technical
47.19assistance to communities for water quality
47.20protection. Of this amount, $129,000 each
47.21year is for assistance to counties through
47.22grants for SSTS program administration.
47.23A county receiving a grant from this
47.24appropriation shall submit the results
47.25achieved with the grant to the commissioner
47.26as part of its annual SSTS report. Any
47.27unexpended balance in the first year does not
47.28cancel but is available in the second year.
47.29$105,000 the first year and $105,000 the
47.30second year are from the environmental fund
47.31for registration of wastewater laboratories.
47.32$913,000 the first year and $913,000 the
47.33second year are from the environmental fund
47.34to continue perfluorochemical biomonitoring
47.35in eastern metropolitan communities, as
48.1recommended by the Environmental Health
48.2Tracking and Biomonitoring Advisory Panel,
48.3and address other environmental health
48.4risks, including air quality. Of this amount,
48.5$812,000 the first year and $812,000 the
48.6second year are for transfer to the Department
48.7of Health.
48.8Notwithstanding Minnesota Statutes, section
48.916A.28, the appropriations encumbered on or
48.10before June 30, 2015, as grants or contracts
48.11for SSTS's, surface water and groundwater
48.12assessments, total maximum daily loads,
48.13storm water, and water quality protection in
48.14this subdivision are available until June 30,
48.152018.
48.16
Subd. 3.Air
15,031,000
15,201,000
48.17
Appropriations by Fund
48.18
Environmental
15,031,000
15,201,000
48.19$200,000 the first year and $200,000 the
48.20second year are from the environmental fund
48.21for a monitoring program under Minnesota
48.22Statutes, section 116.454.
48.23Up to $150,000 the first year and $150,000
48.24the second year may be transferred from the
48.25environmental fund to the small business
48.26environmental improvement loan account
48.27established in Minnesota Statutes, section
48.28116.993.
48.29$125,000 the first year and $125,000 the
48.30second year are from the environmental fund
48.31for monitoring ambient air for hazardous
48.32pollutants in the metropolitan area.
48.33$210,000 the first year and $210,000 the
48.34second year are from the environmental fund
49.1for systematic, localized monitoring efforts
49.2in the state that:
49.3(1) sample ambient air for a period of one to
49.4three months at various sites;
49.5(2) analyze the samples and compare the data
49.6to the agency's fixed air monitoring sites; and
49.7(3) determine whether significant localized
49.8differences exist.
49.9The commissioner, when selecting areas to
49.10monitor, shall give priority to areas where low
49.11income, indigenous American Indians, and
49.12communities of color are disproportionately
49.13impacted by pollution from highway traffic,
49.14air traffic, and industrial sources to assist
49.15with efforts to ensure environmental justice
49.16for those areas. For the purposes of this
49.17paragraph, "environmental justice" means the
49.18fair treatment of people of all races, cultures,
49.19and income levels in the development,
49.20adoption, implementation, and enforcement
49.21of environmental laws and policies.
49.22$690,000 the first year and $690,000 the
49.23second year are from the environmental
49.24fund for emission reduction activities and
49.25grants to small businesses and other nonpoint
49.26emission reduction efforts. Any unexpended
49.27balance in the first year does not cancel but is
49.28available in the second year.
49.29
Subd. 4.Land
17,412,000
17,412,000
49.30
Appropriations by Fund
49.31
Environmental
6,916,000
6,916,000
49.32
Remediation
10,496,000
10,496,000
49.33All money for environmental response,
49.34compensation, and compliance in the
50.1remediation fund not otherwise appropriated
50.2is appropriated to the commissioners of the
50.3Pollution Control Agency and agriculture
50.4for purposes of Minnesota Statutes, section
50.5115B.20, subdivision 2, clauses (1), (2),
50.6(3), (6), and (7). At the beginning of each
50.7fiscal year, the two commissioners shall
50.8jointly submit an annual spending plan
50.9to the commissioner of management and
50.10budget that maximizes the utilization of
50.11resources and appropriately allocates the
50.12money between the two departments. This
50.13appropriation is available until June 30, 2015.
50.14$3,616,000 the first year and $3,616,000 the
50.15second year are from the remediation fund for
50.16purposes of the leaking underground storage
50.17tank program to protect the land. These same
50.18annual amounts are transferred from the
50.19petroleum tank fund to the remediation fund.
50.20$252,000 the first year and $252,000 the
50.21second year are from the remediation fund
50.22for transfer to the commissioner of health for
50.23private water supply monitoring and health
50.24assessment costs in areas contaminated
50.25by unpermitted mixed municipal solid
50.26waste disposal facilities and drinking water
50.27advisories and public information activities
50.28for areas contaminated by hazardous releases.
50.29
50.30
Subd. 5.Environmental Assistance and
Cross-Media
26,275,000
26,249,000
50.31
Appropriations by Fund
50.32
Environmental
25,248,000
25,223,000
50.33
General
1,027,000
1,026,000
51.1$14,250,000 the first year and $14,250,000
51.2the second year are from the environmental
51.3fund for SCORE block grants to counties.
51.4$119,000 the first year and $119,000 the
51.5second year are from the environmental
51.6fund for environmental assistance grants
51.7or loans under Minnesota Statutes, section
51.8115A.0716. Any unencumbered grant and
51.9loan balances in the first year do not cancel
51.10but are available for grants and loans in the
51.11second year.
51.12$89,000 the first year and $89,000 the
51.13second year are from the environmental fund
51.14for duties related to harmful chemicals in
51.15products under Minnesota Statutes, sections
51.16116.9401 to 116.9407. Of this amount,
51.17$57,000 each year is transferred to the
51.18commissioner of health.
51.19$200,000 the first year and $200,000 the
51.20second year are from the environmental
51.21fund for the costs of implementing general
51.22operating permits for feedlots over 1,000
51.23animal units.
51.24$312,000 the first year and $312,000 the
51.25second year are from the general fund and
51.26$188,000 the first year and $188,000 the
51.27second year are from the environmental fund
51.28for Environmental Quality Board operations
51.29and support.
51.30$75,000 the first year and $50,000 the second
51.31year are from the environmental fund for
51.32transfer to the Office of Administrative
51.33Hearings to establish sanitary districts.
52.1$500,000 the first year and $500,000 the
52.2second year are from the general fund for
52.3the Environmental Quality Board to lead
52.4an interagency team to provide technical
52.5assistance regarding the mining, processing,
52.6and transporting of silica sand and develop
52.7the model standards and criteria required
52.8under Minnesota Statutes, section 116C.99.
52.9The agency may transfer a portion of this
52.10appropriation to the commissioners of natural
52.11resources, health, and transportation and to
52.12the Board of Water and Soil Resources for
52.13additional costs of duties related to silica
52.14sand mining in this act.
52.15The commissioner shall prepare and submit
52.16a report to the chairs and ranking minority
52.17members of the senate and house of
52.18representatives committees and divisions
52.19with jurisdiction over the environment and
52.20natural resources by January 15, 2014, with
52.21recommendations for a statewide recycling
52.22refund program for beverage containers that
52.23achieves an 80 percent recycling rate. In
52.24preparing the report, the commissioner shall
52.25consult with stakeholders, including retailers,
52.26collectors, recyclers, local governments, and
52.27consumers on options to increase the current
52.28recycling rate. An assessment of the financial
52.29impact of any recommended program shall
52.30be included in the report.
52.31All money deposited in the environmental
52.32fund for the metropolitan solid waste
52.33landfill fee in accordance with Minnesota
52.34Statutes, section 473.843, and not otherwise
52.35appropriated, is appropriated for the purposes
52.36of Minnesota Statutes, section 473.844.
53.1$315,000 the first year and $315,000 the
53.2second year are from the environmental
53.3fund for the electronic waste program under
53.4Minnesota Statutes, sections 115A.1310 to
53.5115A.1330.
53.6Notwithstanding Minnesota Statutes, section
53.716A.28, the appropriations encumbered on
53.8or before June 30, 2015, as contracts or
53.9grants for surface water and groundwater
53.10assessments; environmental assistance
53.11awarded under Minnesota Statutes, section
53.12115A.0716; technical and research assistance
53.13under Minnesota Statutes, section 115A.152;
53.14technical assistance under Minnesota
53.15Statutes, section 115A.52; and pollution
53.16prevention assistance under Minnesota
53.17Statutes, section 115D.04, are available until
53.18June 30, 2017.
53.19
Subd. 6.Remediation Fund
53.20The commissioner shall transfer up to
53.21$46,000,000 from the environmental fund to
53.22the remediation fund for the purposes of the
53.23remediation fund under Minnesota Statutes,
53.24section 116.155, subdivision 2.

53.25
Sec. 4. NATURAL RESOURCES
53.26
Subdivision 1.Total Appropriation
$
236,744,000
$
241,494,000
53.27
Appropriations by Fund
53.28
2014
2015
53.29
General
61,486,000
66,536,000
53.30
Natural Resources
83,586,000
83,286,000
53.31
Game and Fish
91,372,000
91,372,000
53.32
Remediation
100,000
100,000
53.33
Permanent School
200,000
200,000
54.1The amounts that may be spent for each
54.2purpose are specified in the following
54.3subdivisions.
54.4
54.5
Subd. 2.Land and Mineral Resources
Management
6,287,000
6,687,000
54.6
Appropriations by Fund
54.7
General
1,164,000
1,564,000
54.8
Natural Resources
3,472,000
3,472,000
54.9
Game and Fish
1,451,000
1,451,000
54.10
Permanent School
200,000
200,000
54.11$68,000 the first year and $68,000 the
54.12second year are for minerals cooperative
54.13environmental research, of which $34,000
54.14the first year and $34,000 the second year are
54.15available only as matched by $1 of nonstate
54.16money for each $1 of state money. The
54.17match may be cash or in-kind.
54.18$251,000 the first year and $251,000 the
54.19second year are for iron ore cooperative
54.20research. Of this amount, $200,000 each year
54.21is from the minerals management account
54.22in the natural resources fund. $175,000 the
54.23first year and $175,000 the second year are
54.24available only as matched by $1 of nonstate
54.25money for each $1 of state money. The match
54.26may be cash or in-kind. Any unencumbered
54.27balance from the first year does not cancel
54.28and is available in the second year.
54.29$2,696,000 the first year and $2,696,000
54.30the second year are from the minerals
54.31management account in the natural resources
54.32fund for use as provided in Minnesota
54.33Statutes, section 93.2236, paragraph (c),
54.34for mineral resource management, projects
54.35to enhance future mineral income, and
55.1projects to promote new mineral resource
55.2opportunities.
55.3$200,000 the first year and $200,000 the
55.4second year are from the state forest suspense
55.5account in the permanent school fund to
55.6accelerate land exchanges, land sales, and
55.7commercial leasing of school trust lands and
55.8to identify, evaluate, and lease construction
55.9aggregate located on school trust lands. This
55.10appropriation is to be used for securing
55.11long-term economic return from the
55.12school trust lands consistent with fiduciary
55.13responsibilities and sound natural resources
55.14conservation and management principles.
55.15The appropriations in Laws 2007, chapter 57,
55.16article 1, section 4, subdivision 2, as amended
55.17by Laws 2009, chapter 37, article 1, section
55.1860, and as extended by Laws 2011, First
55.19Special Session chapter 2, article 1, section 4,
55.20subdivision 2, for support of the land records
55.21management system are available until spent.
55.22
Subd. 3.Ecological and Water Resources
27,182,000
31,582,000
55.23
Appropriations by Fund
55.24
General
12,117,000
16,817,000
55.25
Natural Resources
11,002,000
10,702,000
55.26
Game and Fish
4,063,000
4,063,000
55.27$3,542,000 the first year and $3,242,000 the
55.28second year are from the invasive species
55.29account in the natural resources fund and
55.30$2,906,000 the first year and $3,206,000 the
55.31second year are from the general fund for
55.32management, public awareness, assessment
55.33and monitoring research, and water access
55.34inspection to prevent the spread of invasive
55.35species; management of invasive plants in
56.1public waters; and management of terrestrial
56.2invasive species on state-administered lands.
56.3$5,000,000 the first year and $5,000,000 the
56.4second year are from the water management
56.5account in the natural resources fund for only
56.6the purposes specified in Minnesota Statutes,
56.7section 103G.27, subdivision 2.
56.8$103,000 the first year and $103,000 the
56.9second year are for a grant to the Mississippi
56.10Headwaters Board for up to 50 percent of
56.11the cost of implementing the comprehensive
56.12plan for the upper Mississippi within areas
56.13under the board's jurisdiction.
56.14$10,000 the first year and $10,000 the second
56.15year are for payment to the Leech Lake Band
56.16of Chippewa Indians to implement the band's
56.17portion of the comprehensive plan for the
56.18upper Mississippi.
56.19$264,000 the first year and $264,000 the
56.20second year are for grants for up to 50
56.21percent of the cost of implementation of
56.22the Red River mediation agreement. The
56.23commissioner shall submit a report to the
56.24chairs of the legislative committees having
56.25primary jurisdiction over environment and
56.26natural resources policy and finance on the
56.27accomplishments achieved with the grants
56.28by January 15, 2015.
56.29$1,643,000 the first year and $1,643,000
56.30the second year are from the heritage
56.31enhancement account in the game and
56.32fish fund for only the purposes specified
56.33in Minnesota Statutes, section 297A.94,
56.34paragraph (e), clause (1).
57.1$1,223,000 the first year and $1,223,000 the
57.2second year are from the nongame wildlife
57.3management account in the natural resources
57.4fund for the purpose of nongame wildlife
57.5management. Notwithstanding Minnesota
57.6Statutes, section 290.431, $100,000 the first
57.7year and $100,000 the second year may
57.8be used for nongame wildlife information,
57.9education, and promotion.
57.10$1,600,000 the first year and $6,000,000 the
57.11second year are from the general fund for the
57.12following activities:
57.13(1) increased financial reimbursement
57.14and technical support to soil and water
57.15conservation districts or other local units
57.16of government for groundwater level
57.17monitoring;
57.18(2) additional surface water monitoring and
57.19analysis, including installation of monitoring
57.20gauges;
57.21(3) additional groundwater analysis to
57.22assist with water appropriation permitting
57.23decisions;
57.24(4) additional permit application review
57.25incorporating surface water and groundwater
57.26technical analysis;
57.27(5) enhancement of precipitation data and
57.28analysis to improve the use of irrigation;
57.29(6) enhanced information technology,
57.30including electronic permitting and
57.31integrated data systems; and
57.32(7) increased compliance and monitoring.
58.1Of this amount, $600,000 the first year is for
58.2silica sand rulemaking and is available until
58.3spent.
58.4The commissioner, in cooperation with the
58.5commissioner of agriculture, shall enforce
58.6compliance with aquatic plant management
58.7requirements regulating the control of
58.8aquatic plants with pesticides and removal of
58.9aquatic plants by mechanical means under
58.10Minnesota Statutes, section 103G.615.
58.11
Subd. 4.Forest Management
36,860,000
36,810,000
58.12
Appropriations by Fund
58.13
General
24,450,000
24,400,000
58.14
Natural Resources
11,123,000
11,123,000
58.15
Game and Fish
1,287,000
1,287,000
58.16$7,145,000 the first year and $7,145,000
58.17the second year are for prevention,
58.18presuppression, and suppression costs of
58.19emergency firefighting and other costs
58.20incurred under Minnesota Statutes, section
58.2188.12. The amount necessary to pay for
58.22presuppression and suppression costs during
58.23the biennium is appropriated from the general
58.24fund.
58.25By January 15 of each year, the commissioner
58.26of natural resources shall submit a report to
58.27the chairs and ranking minority members
58.28of the house and senate committees
58.29and divisions having jurisdiction over
58.30environment and natural resources finance,
58.31identifying all firefighting costs incurred
58.32and reimbursements received in the prior
58.33fiscal year. These appropriations may
58.34not be transferred. Any reimbursement
58.35of firefighting expenditures made to the
59.1commissioner from any source other than
59.2federal mobilizations shall be deposited into
59.3the general fund.
59.4$11,123,000 the first year and $11,123,000
59.5the second year are from the forest
59.6management investment account in the
59.7natural resources fund for only the purposes
59.8specified in Minnesota Statutes, section
59.989.039, subdivision 2.
59.10$1,287,000 the first year and $1,287,000
59.11the second year are from the heritage
59.12enhancement account in the game and fish
59.13fund to advance ecological classification
59.14systems (ECS) scientific management tools
59.15for forest and invasive species management.
59.16$580,000 the first year and $580,000 the
59.17second year are for the Forest Resources
59.18Council for implementation of the
59.19Sustainable Forest Resources Act.
59.20$250,000 the first year and $250,000 the
59.21second year are for the FORIST system.
59.22$50,000 the first year is for development of
59.23a plan and recommendations, in consultation
59.24with the University of Minnesota,
59.25Department of Forest Resources, on utilizing
59.26the state forest nurseries to: ensure the
59.27long-term availability of ecologically
59.28appropriate and genetically diverse native
59.29forest seed and seedlings to support state
59.30conservation projects and initiatives;
59.31protect the genetic fitness and resilience of
59.32native forest ecosystems; and support tree
59.33improvement research to address evolving
59.34pressures such as invasive species and
59.35climate change. By December 31, 2013,
60.1the commissioner shall submit a report with
60.2the plan and recommendations to the chairs
60.3and ranking minority members of the senate
60.4and house of representatives committees
60.5and divisions with jurisdiction over natural
60.6resources. The report shall address funding
60.7to improve state forest nursery and tree
60.8improvement capabilities. The report shall
60.9also provide updated recommendations from
60.10those contained in the budget and financial
60.11plan required under Laws 2011, First Special
60.12Session chapter 2, article 4, section 30.
60.13The general fund base budget for forest
60.14management in fiscal year 2016 and
60.15thereafter is $23,850,000.
60.16
Subd. 5.Parks and Trails Management
67,802,000
67,802,000
60.17
Appropriations by Fund
60.18
2014
2015
60.19
General
19,780,000
19,780,000
60.20
Natural Resources
45,763,000
45,763,000
60.21
Game and Fish
2,259,000
2,259,000
60.22$1,075,000 the first year and $1,075,000 the
60.23second year are from the water recreation
60.24account in the natural resources fund for
60.25enhancing public water access facilities
60.26and to prevent the spread of aquatic
60.27invasive species, including inspection and
60.28decontamination programs. Of the amount in
60.29the first year, $300,000 is for construction of
60.30restroom facilities at the public water access
60.31for Crane Lake on Handberg Road and is
60.32available until spent. This appropriation is
60.33not available until the commissioner develops
60.34and implements design standards and best
60.35management practices for public water access
61.1sites that maintain and improve water quality
61.2by avoiding shoreline erosion and runoff.
61.3$5,740,000 the first year and $5,740,000 the
61.4second year are from the natural resources
61.5fund for state trail, park, and recreation area
61.6operations. This appropriation is from the
61.7revenue deposited in the natural resources
61.8fund under Minnesota Statutes, section
61.9297A.94, paragraph (e), clause (2).
61.10$1,005,000 the first year and $1,005,000 the
61.11second year are from the natural resources
61.12fund for trail grants to local units of
61.13government on land to be maintained for at
61.14least 20 years for the purposes of the grants.
61.15This appropriation is from the revenue
61.16deposited in the natural resources fund
61.17under Minnesota Statutes, section 297A.94,
61.18paragraph (e), clause (4). Any unencumbered
61.19balance does not cancel at the end of the first
61.20year and is available for the second year.
61.21$8,424,000 the first year and $8,424,000
61.22the second year are from the snowmobile
61.23trails and enforcement account in the
61.24natural resources fund for the snowmobile
61.25grants-in-aid program. Any unencumbered
61.26balance does not cancel at the end of the first
61.27year and is available for the second year.
61.28$1,460,000 the first year and $1,460,000 the
61.29second year are from the natural resources
61.30fund for the off-highway vehicle grants-in-aid
61.31program. Of this amount, $1,210,000 each
61.32year is from the all-terrain vehicle account;
61.33$150,000 each year is from the off-highway
61.34motorcycle account; and $100,000 each year
61.35is from the off-road vehicle account. Any
62.1unencumbered balance does not cancel at the
62.2end of the first year and is available for the
62.3second year.
62.4$75,000 the first year and $75,000 the second
62.5year are from the cross-country ski account
62.6in the natural resources fund for grooming
62.7and maintaining cross-country ski trails in
62.8state parks, trails, and recreation areas.
62.9$250,000 the first year and $250,000 the
62.10second year are from the state land and
62.11water conservation account (LAWCON)
62.12in the natural resources fund for priorities
62.13established by the commissioner for eligible
62.14state projects and administrative and
62.15planning activities consistent with Minnesota
62.16Statutes, section 84.0264, and the federal
62.17Land and Water Conservation Fund Act.
62.18Any unencumbered balance does not cancel
62.19at the end of the first year and is available for
62.20the second year.
62.21The appropriation in Laws 2009, chapter
62.2237, article 1, section 4, subdivision 5, from
62.23the natural resources fund from the revenue
62.24deposited under Minnesota Statutes, section
62.25297A.94, paragraph (e), clause (4), for local
62.26grants is available until spent.
62.27
Subd. 6.Fish and Wildlife Management
62,775,000
62,775,000
62.28
Appropriations by Fund
62.29
2014
2015
62.30
Natural Resources
1,906,000
1,906,000
62.31
Game and Fish
60,869,000
60,869,000
62.32$8,167,000 the first year and $8,167,000
62.33the second year are from the heritage
62.34enhancement account in the game and fish
62.35fund only for activities specified in Minnesota
63.1Statutes, section 297A.94, paragraph (e),
63.2clause (1). Notwithstanding Minnesota
63.3Statutes, section 297A.94, five percent of
63.4this appropriation may be used for expanding
63.5hunter and angler recruitment and retention
63.6activities that emphasize the recruitment and
63.7retention of underrepresented groups.
63.8Notwithstanding Minnesota Statutes, section
63.984.943, $13,000 the first year and $13,000
63.10the second year from the critical habitat
63.11private sector matching account may be used
63.12to publicize the critical habitat license plate
63.13match program.
63.14
Subd. 7.Enforcement
35,518,000
35,518,000
63.15
Appropriations by Fund
63.16
General
3,975,000
3,975,000
63.17
Natural Resources
10,000,000
10,000,000
63.18
Game and Fish
21,443,000
21,443,000
63.19
Remediation
100,000
100,000
63.20$1,718,000 the first year and $1,718,000 the
63.21second year are from the general fund for
63.22enforcement efforts to prevent the spread of
63.23aquatic invasive species.
63.24$1,450,000 the first year and $1,450,000
63.25the second year are from the heritage
63.26enhancement account in the game and
63.27fish fund for only the purposes specified
63.28in Minnesota Statutes, section 297A.94,
63.29paragraph (e), clause (1).
63.30$250,000 the first year and $250,000 the
63.31second year are for the conservation officer
63.32pre-employment education program. Of this
63.33amount, $30,000 each year is from the water
63.34recreation account, $13,000 each year is from
63.35the snowmobile account, and $20,000 each
64.1year is from the all-terrain vehicle account
64.2in the natural resources fund; and $187,000
64.3each year is from the game and fish fund, of
64.4which $17,000 each year is from the heritage
64.5enhancement account.
64.6$1,082,000 the first year and $1,082,000 the
64.7second year are from the water recreation
64.8account in the natural resources fund
64.9for grants to counties for boat and water
64.10safety and to prevent the spread of aquatic
64.11invasive species, including inspection
64.12and decontamination programs. Any
64.13unencumbered balance does not cancel at the
64.14end of the first year and is available for the
64.15second year.
64.16$315,000 the first year and $315,000 the
64.17second year are from the snowmobile
64.18trails and enforcement account in the
64.19natural resources fund for grants to local
64.20law enforcement agencies for snowmobile
64.21enforcement activities. Any unencumbered
64.22balance does not cancel at the end of the first
64.23year and is available for the second year.
64.24$250,000 the first year and $250,000 the
64.25second year are from the all-terrain vehicle
64.26account for grants to qualifying organizations
64.27to assist in safety and environmental
64.28education and monitoring trails on public
64.29lands under Minnesota Statutes, section
64.3084.9011. Grants issued under this paragraph:
64.31(1) must be issued through a formal
64.32agreement with the organization; and
64.33(2) must not be used as a substitute for
64.34traditional spending by the organization.
64.35By December 15 each year, an organization
65.1receiving a grant under this paragraph shall
65.2report to the commissioner with details on
65.3expenditures and outcomes from the grant.
65.4Of this appropriation, $25,000 each year
65.5is for administration of these grants. Any
65.6unencumbered balance does not cancel at the
65.7end of the first year and is available for the
65.8second year.
65.9$510,000 the first year and $510,000
65.10the second year are from the natural
65.11resources fund for grants to county law
65.12enforcement agencies for off-highway
65.13vehicle enforcement and public education
65.14activities based on off-highway vehicle use
65.15in the county. Of this amount, $498,000 each
65.16year is from the all-terrain vehicle account;
65.17$11,000 each year is from the off-highway
65.18motorcycle account; and $1,000 each year
65.19is from the off-road vehicle account. The
65.20county enforcement agencies may use
65.21money received under this appropriation
65.22to make grants to other local enforcement
65.23agencies within the county that have a high
65.24concentration of off-highway vehicle use.
65.25Of this appropriation, $25,000 each year
65.26is for administration of these grants. Any
65.27unencumbered balance does not cancel at the
65.28end of the first year and is available for the
65.29second year.
65.30$720,000 the first year and $720,000 the
65.31second year are for development and
65.32maintenance of a records management
65.33system capable of providing real time data
65.34with global positioning system information.
65.35Of this amount, $360,000 each year is from
65.36the game and fish fund, and $360,000 each
66.1year is from the invasive species account in
66.2the natural resources fund.
66.3Up to $300,000 each year from the invasive
66.4species account is for grants to local units
66.5of government and tribes to prevent the
66.6spread of aquatic invasive species, including
66.7inspection and decontamination programs.
66.8
Subd. 8.Operations Support
320,000
320,000
66.9
Appropriations by Fund
66.10
Natural Resources
320,000
320,000
66.11$320,000 the first year and $320,000 the
66.12second year are from the natural resources
66.13fund for grants to be divided equally between
66.14the city of St. Paul for the Como Park Zoo
66.15and Conservatory and the city of Duluth
66.16for the Duluth Zoo. This appropriation
66.17is from the revenue deposited to the fund
66.18under Minnesota Statutes, section 297A.94,
66.19paragraph (e), clause (5).
66.20The commissioner may spend up to $300,000
66.21per year from the special revenue fund to
66.22improve data analytics. The commissioner
66.23may bill the divisions of the agency an
66.24appropriate share of costs associated with
66.25this project. Any information technology
66.26development, support, or costs necessary for
66.27this project shall be incorporated into the
66.28agency's service level agreement with and
66.29paid to the Office of Enterprise Technology.

66.30
66.31
Sec. 5. BOARD OF WATER AND SOIL
RESOURCES
$
12,641,000
$
12,641,000
66.32$3,423,000 the first year and $3,423,000 the
66.33second year are for natural resources block
66.34grants to local governments. Grants must be
67.1matched with a combination of local cash or
67.2in-kind contributions. The base grant portion
67.3related to water planning must be matched
67.4by an amount as specified by Minnesota
67.5Statutes, section 103B.3369. The board may
67.6reduce the amount of the natural resources
67.7block grant to a county by an amount equal to
67.8any reduction in the county's general services
67.9allocation to a soil and water conservation
67.10district from the county's previous year
67.11allocation when the board determines that
67.12the reduction was disproportionate.
67.13$3,116,000 the first year and $3,116,000
67.14the second year are for grants requested
67.15by soil and water conservation districts for
67.16general purposes, nonpoint engineering, and
67.17implementation of the reinvest in Minnesota
67.18reserve program. Upon approval of the
67.19board, expenditures may be made from these
67.20appropriations for supplies and services
67.21benefiting soil and water conservation
67.22districts. Any district requesting a grant
67.23under this paragraph shall maintain a Web
67.24page that publishes, at a minimum, its annual
67.25report, annual audit, annual budget, and
67.26meeting notices and minutes.
67.27$1,560,000 the first year and $1,560,000 the
67.28second year are for the following cost-share
67.29programs:
67.30(1) $260,000 each year is for feedlot water
67.31quality grants for feedlots under 300 animal
67.32units in areas where there are impaired
67.33waters;
67.34(2) $1,200,000 each year is for soil and water
67.35conservation district cost-sharing contracts
68.1for erosion control, nutrient and manure
68.2management, vegetative buffers, and water
68.3quality management; and
68.4(3) $100,000 each year is for county
68.5cooperative weed management programs and
68.6to restore native plants in selected invasive
68.7species management sites by providing local
68.8native seeds and plants to landowners for
68.9implementation.
68.10The board shall submit a report to the
68.11commissioner of the Pollution Control
68.12Agency on the status of subsurface sewage
68.13treatment systems in order to ensure a single,
68.14comprehensive inventory of the systems for
68.15planning purposes.
68.16$386,000 the first year and $386,000
68.17the second year are for implementation,
68.18enforcement, and oversight of the Wetland
68.19Conservation Act.
68.20$166,000 the first year and $166,000
68.21the second year are to provide technical
68.22assistance to local drainage management
68.23officials and for the costs of the Drainage
68.24Work Group.
68.25$100,000 the first year and $100,000
68.26the second year are for a grant to the
68.27Red River Basin Commission for water
68.28quality and floodplain management,
68.29including administration of programs. This
68.30appropriation must be matched by nonstate
68.31funds. If the appropriation in either year is
68.32insufficient, the appropriation in the other
68.33year is available for it.
69.1$120,000 the first year and $120,000
69.2the second year are for grants to Area
69.3II Minnesota River Basin Projects for
69.4floodplain management.
69.5Notwithstanding Minnesota Statutes, section
69.6103C.501, the board may shift cost-share
69.7funds in this section and may adjust the
69.8technical and administrative assistance
69.9portion of the grant funds to leverage
69.10federal or other nonstate funds or to address
69.11high-priority needs identified in local water
69.12management plans or comprehensive water
69.13management plans.
69.14$125,000 the first year and $125,000 the
69.15second year are to implement internal control
69.16policies and provide related oversight and
69.17accountability for agency programs.
69.18The appropriations for grants in this
69.19section are available until expended. If an
69.20appropriation for grants in either year is
69.21insufficient, the appropriation in the other
69.22year is available for it.

69.23
Sec. 6. METROPOLITAN COUNCIL
$
8,540,000
$
8,540,000
69.24
Appropriations by Fund
69.25
2014
2015
69.26
General
2,870,000
2,870,000
69.27
Natural Resources
5,670,000
5,670,000
69.28$2,870,000 the first year and $2,870,000 the
69.29second year are for metropolitan area regional
69.30parks operation and maintenance according
69.31to Minnesota Statutes, section 473.351.
69.32$5,670,000 the first year and $5,670,000 the
69.33second year are from the natural resources
69.34fund for metropolitan area regional parks
70.1and trails maintenance and operations. This
70.2appropriation is from the revenue deposited
70.3in the natural resources fund under Minnesota
70.4Statutes, section 297A.94, paragraph (e),
70.5clause (3).

70.6
70.7
Sec. 7. CONSERVATION CORPS
MINNESOTA
$
945,000
$
945,000
70.8
Appropriations by Fund
70.9
2014
2015
70.10
General
455,000
455,000
70.11
Natural Resources
490,000
490,000
70.12Conservation Corps Minnesota may receive
70.13money appropriated from the natural
70.14resources fund under this section only
70.15as provided in an agreement with the
70.16commissioner of natural resources.

70.17
Sec. 8. ZOOLOGICAL BOARD
$
5,585,000
$
5,585,000
70.18
Appropriations by Fund
70.19
2014
2015
70.20
General
5,425,000
5,425,000
70.21
Natural Resources
160,000
160,000
70.22$160,000 the first year and $160,000 the
70.23second year are from the natural resources
70.24fund from the revenue deposited under
70.25Minnesota Statutes, section 297A.94,
70.26paragraph (e), clause (5).

70.27    Sec. 9. Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended by
70.28Laws 2010, First Special Session chapter 1, article 6, section 6, is amended to read:
70.29
Subd. 6.Transfers In
70.30(a) The amounts appropriated from the
70.31agency indirect costs account in the special
70.32revenue fund are reduced by $328,000 in
70.33fiscal year 2010 and $462,000 in fiscal year
71.12011, and those amounts must be transferred
71.2to the general fund by June 30, 2011. The
71.3appropriation reductions are onetime.
71.4(b) The commissioner of management and
71.5budget shall transfer $48,000,000 in fiscal
71.6year 2011 from the closed landfill investment
71.7fund in Minnesota Statutes, section 115B.421,
71.8to the general fund. The commissioner shall
71.9transfer $12,000,000 $9,900,000 on July 1
71.10in each of the years, 2014, 2015, 2016, and
71.112017 $12,550,000 in each of the years 2015
71.12and 2016, and $13,000,000 in 2017 from the
71.13general fund to the closed landfill investment
71.14fund. For each transfer to the closed landfill
71.15investment fund, the commissioner shall
71.16determine the total amount of interest and
71.17other earnings that would have accrued to
71.18the fund if the transfers to the general fund
71.19under this paragraph had not been made and
71.20add this amount to the transfer. The amounts
71.21necessary for these transfers are appropriated
71.22from the general fund in the fiscal years
71.23specified for the transfers.

71.24ARTICLE 4
71.25ENVIRONMENT AND NATURAL RESOURCES STATUTORY CHANGES

71.26    Section 1. Minnesota Statutes 2012, section 13.7411, subdivision 4, is amended to read:
71.27    Subd. 4. Waste management. (a) Product stewardship program. Trade secret
71.28and sales data information submitted to the Pollution Control Agency under the product
71.29stewardship program is classified under section 115A.1415.
71.30(b) Transfer station data. Data received by a county or district from a transfer
71.31station under section 115A.84, subdivision 5, are classified under that section.
71.32(b) (c) Solid waste records. Records of solid waste facilities received, inspected,
71.33or copied by a county pursuant to section 115A.882 are classified pursuant to section
71.34115A.882, subdivision 3 .
72.1(c) (d) Customer lists. Customer lists provided to counties or cities by solid waste
72.2collectors are classified under section 115A.93, subdivision 5.

72.3    Sec. 2. Minnesota Statutes 2012, section 84.027, is amended by adding a subdivision
72.4to read:
72.5    Subd. 19. Federal law compliance. Notwithstanding any law to the contrary,
72.6the commissioner may establish, by written order, policies for the use and operation of
72.7other power-driven mobility devices, as defined under Code of Federal Regulations, title
72.828, section 35.104, on lands and in facilities administered by the commissioner for the
72.9purposes of implementing the Americans with Disabilities Act, United States Code, title
72.1042, section 12101 et seq. These policies are exempt from the rulemaking provisions of
72.11chapter 14 and section 14.386 does not apply.

72.12    Sec. 3. Minnesota Statutes 2012, section 84.415, is amended by adding a subdivision
72.13to read:
72.14    Subd. 7. Existing road right-of-way; fee exemption. A utility license for crossing
72.15public lands or public waters is exempt from all fees specified in this section and in rules
72.16adopted under this section when the utility crossing is on an existing right-of-way of
72.17a public road.
72.18EFFECTIVE DATE.This section is effective July 1, 2014.

72.19    Sec. 4. Minnesota Statutes 2012, section 84.63, is amended to read:
72.2084.63 CONVEYANCE OF INTERESTS IN LANDS TO STATE AND
72.21FEDERAL GOVERNMENTS.
72.22(a) Notwithstanding any existing law to the contrary, the commissioner of natural
72.23resources is hereby authorized on behalf of the state to convey to the United States
72.24or to the state of Minnesota or any of its subdivisions, upon state-owned lands under
72.25the administration of the commissioner of natural resources, permanent or temporary
72.26easements for specified periods or otherwise for trails, highways, roads including
72.27limitation of right of access from the lands to adjacent highways and roads, flowage for
72.28development of fish and game resources, stream protection, flood control, and necessary
72.29appurtenances thereto, such conveyances to be made upon such terms and conditions
72.30including provision for reversion in the event of non-user as the commissioner of natural
72.31resources may determine.
73.1(b) In addition to the fee for the market value of the easement, the commissioner of
73.2natural resources shall assess the applicant the following fees:
73.3(1) an application fee of $2,000 to cover reasonable costs for reviewing the
73.4application and preparing the easement; and
73.5(2) a monitoring fee to cover the projected reasonable costs for monitoring the
73.6construction of the improvement for which the easement was conveyed and preparing
73.7special terms and conditions for the easement. The commissioner must give the applicant
73.8an estimate of the monitoring fee before the applicant submits the fee.
73.9(c) The applicant shall pay these fees to the commissioner of natural resources.
73.10The commissioner shall not issue the easement until the applicant has paid in full the
73.11application fee, the monitoring fee, and the market value payment for the easement.
73.12(d) Upon completion of construction of the improvement for which the easement
73.13was conveyed, the commissioner shall refund the unobligated balance from the monitoring
73.14fee revenue. The commissioner shall not return the application fee, even if the application
73.15is withdrawn or denied.
73.16(e) Money received under paragraph (b) must be deposited in the land management
73.17account in the natural resources fund and is appropriated to the commissioner of natural
73.18resources to cover the reasonable costs incurred for issuing and monitoring easements.
73.19(f) A county or joint county regional railroad authority is exempt from all fees
73.20specified under this section for trail easements on state-owned land.
73.21EFFECTIVE DATE.This section is effective July 1, 2014.

73.22    Sec. 5. [84.633] EXCHANGE OF ROAD EASEMENTS.
73.23    Subdivision 1. Authority. The commissioner of natural resources, on behalf of
73.24the state, may convey a road easement according to this section for access across state
73.25land under the commissioner's jurisdiction in exchange for a road easement for access to
73.26property owned by the United States, the state of Minnesota or any of its subdivisions, or a
73.27private party. The exercise of the easement across state land must not cause significant
73.28adverse environmental or natural resources management impacts. Exchanges under this
73.29section are limited to existing access corridors.
73.30    Subd. 2. Substantially equal acres. The acres covered by the state easement
73.31conveyed by the commissioner must be substantially equal to the acres covered by the
73.32easement being received by the commissioner. For purposes of this section, "substantially
73.33equal" means that the acres do not differ by more than 20 percent. The commissioner's
73.34finding of substantially equal acres is in lieu of an appraisal or other determination of
73.35value of the lands.
74.1    Subd. 3. School trust lands. If the commissioner conveys a road easement over
74.2school trust land to a nongovernmental entity, the term of the road easement is limited
74.3to 50 years. The easement exchanged with the state may be limited to 50 years or may
74.4be perpetual.
74.5    Subd. 4. Terms and conditions. The commissioner may impose terms and
74.6conditions of use as necessary and appropriate under the circumstances. The state may
74.7accept an easement with similar terms and conditions as the state easement.
74.8    Subd. 5. Survey. If the commissioner determines that a survey is required, the
74.9governmental unit or private landowner shall pay to the commissioner a survey fee of not
74.10less than one half of the cost of the survey as determined by the commissioner.
74.11    Subd. 6. Application fee. When a private landowner or governmental unit, except
74.12the state, presents to the commissioner an offer to exchange road easements, the private
74.13landowner or governmental unit shall pay an application fee as provided under section
74.1484.63 to cover reasonable costs for reviewing the application and preparing the easements.
74.15    Subd. 7. Title. If the commissioner determines it is necessary to obtain an opinion
74.16as to the title of the land being encumbered by the easement that will be received by the
74.17commissioner, the governmental unit or private landowner shall submit an abstract of title
74.18or other title information sufficient to determine possession of the land, improvements,
74.19liens, encumbrances, and other matters affecting title.
74.20    Subd. 8. Disposition of fees. (a) Any fee paid under subdivision 5 must be credited
74.21to the account from which expenses are or will be paid and the fee is appropriated for the
74.22expenditures in the same manner as other money in the account.
74.23(b) Any fee paid under subdivision 6 must be deposited in the land management
74.24account in the natural resources fund and is appropriated to the commissioner to cover the
74.25reasonable costs incurred for preparing and issuing the state road easement and accepting
74.26the road easement from the private landowner or governmental entity.

74.27    Sec. 6. Minnesota Statutes 2012, section 84.82, is amended by adding a subdivision to
74.28read:
74.29    Subd. 2a. Nontrail use registration. A snowmobile may be registered for nontrail
74.30use. A snowmobile registered under this subdivision may not be operated on a state or
74.31grant-in-aid snowmobile trail. The fee for a nontrail use registration is $45 for three years.
74.32A nontrail use registration is not transferable. In addition to other penalties prescribed by
74.33law, the penalty for violation of this subdivision is immediate revocation of the nontrail
74.34use registration. The commissioner shall ensure that the registration sticker provided for
75.1limited nontrail use is of a different color and is distinguishable from other snowmobile
75.2registration and state trail stickers provided.

75.3    Sec. 7. Minnesota Statutes 2012, section 84.82, subdivision 3, is amended to read:
75.4    Subd. 3. Fees for registration. (a) The fee for registration of each snowmobile,
75.5other than those used for an agricultural purpose, as defined in section 84.92, subdivision
75.61c, or those registered by a dealer or manufacturer pursuant to paragraph (b) or (c), or
75.7those registered under subdivision 2a shall be as follows: $75 for three years and $10
75.8for a duplicate or transfer.
75.9(b) The total registration fee for all snowmobiles owned by a dealer and operated for
75.10demonstration or testing purposes shall be $50 per year.
75.11(c) The total registration fee for all snowmobiles owned by a manufacturer and
75.12operated for research, testing, experimentation, or demonstration purposes shall be $150
75.13per year. Dealer and manufacturer registrations are not transferable.
75.14(d) The onetime fee for registration of an exempt snowmobile under subdivision
75.156a is $6.

75.16    Sec. 8. Minnesota Statutes 2012, section 84.8205, subdivision 1, is amended to read:
75.17    Subdivision 1. Sticker required; fee. (a) A snowmobile that is not registered
75.18in the state under section 84.82, subdivision 3, paragraph (a), or that is registered by a
75.19manufacturer or dealer under section 84.82, subdivision 3, paragraph (b) or (c), may
75.20not be operated on a state or grant-in-aid snowmobile trail unless a snowmobile state
75.21trail sticker is affixed to the snowmobile.
75.22(b) The commissioner of natural resources shall issue a sticker upon application
75.23and payment of a fee. The fee is:
75.24(1) $35 for a one-year snowmobile state trail sticker purchased by an individual; and
75.25(2) $15 for a one-year snowmobile state trail sticker purchased by a dealer or
75.26manufacturer.
75.27(c) In addition to other penalties prescribed by law, an individual in violation of
75.28this subdivision must purchase an annual state trail sticker for a fee of $70. The sticker
75.29is valid from November 1 through June 30. Fees collected under this section, except for
75.30the issuing fee for licensing agents, shall be deposited in the state treasury and credited
75.31to the snowmobile trails and enforcement account in the natural resources fund and,
75.32except for the electronic licensing system commission established by the commissioner
75.33under section 84.027, subdivision 15, must be used for grants-in-aid, trail maintenance,
75.34grooming, and easement acquisition.
76.1    (d) A state trail sticker is not required under this section for:
76.2    (1) a snowmobile that is owned and used by the United States, an Indian tribal
76.3government, another state, or a political subdivision thereof that is exempt from
76.4registration under section 84.82, subdivision 6;
76.5    (2) a collector snowmobile that is operated as provided in a special permit issued for
76.6the collector snowmobile under section 84.82, subdivision 7a;
76.7    (3) a person operating a snowmobile only on the portion of a trail that is owned by
76.8the person or the person's spouse, child, or parent; or
76.9    (4) a snowmobile while being used to groom a state or grant-in-aid trail.

76.10    Sec. 9. Minnesota Statutes 2012, section 84.922, is amended by adding a subdivision
76.11to read:
76.12    Subd. 14. No registration weekend. The commissioner shall designate, by written
76.13order published in the State Register, one weekend each year when, notwithstanding
76.14subdivision 1, an all-terrain vehicle may be operated on state and grant-in-aid all-terrain
76.15vehicle trails without a registration issued under this section. Nonresidents may participate
76.16during the designated weekend without a state trail pass required under section 84.9275.
76.17EFFECTIVE DATE.This section is effective the day following final enactment.

76.18    Sec. 10. Minnesota Statutes 2012, section 84.9256, subdivision 1, is amended to read:
76.19    Subdivision 1. Prohibitions on youthful operators. (a) Except for operation on
76.20public road rights-of-way that is permitted under section 84.928 and as provided under
76.21paragraph (j), a driver's license issued by the state or another state is required to operate an
76.22all-terrain vehicle along or on a public road right-of-way.
76.23    (b) A person under 12 years of age shall not:
76.24    (1) make a direct crossing of a public road right-of-way;
76.25    (2) operate an all-terrain vehicle on a public road right-of-way in the state; or
76.26    (3) operate an all-terrain vehicle on public lands or waters, except as provided in
76.27paragraph (f).
76.28    (c) Except for public road rights-of-way of interstate highways, a person 12 years
76.29of age but less than 16 years may make a direct crossing of a public road right-of-way
76.30of a trunk, county state-aid, or county highway or operate on public lands and waters or
76.31state or grant-in-aid trails, only if that person possesses a valid all-terrain vehicle safety
76.32certificate issued by the commissioner and is accompanied by a person 18 years of age or
76.33older who holds a valid driver's license.
77.1    (d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years
77.2old, but less than 16 18 years old, must:
77.3    (1) successfully complete the safety education and training program under section
77.484.925 , subdivision 1, including a riding component; and
77.5    (2) be able to properly reach and control the handle bars and reach the foot pegs
77.6while sitting upright on the seat of the all-terrain vehicle.
77.7    (e) A person at least 11 years of age may take the safety education and training
77.8program and may receive an all-terrain vehicle safety certificate under paragraph (d), but
77.9the certificate is not valid until the person reaches age 12.
77.10    (f) A person at least ten years of age but under 12 years of age may operate an
77.11all-terrain vehicle with an engine capacity up to 90cc on public lands or waters if
77.12accompanied by a parent or legal guardian.
77.13    (g) A person under 15 years of age shall not operate a class 2 all-terrain vehicle.
77.14    (h) A person under the age of 16 may not operate an all-terrain vehicle on public
77.15lands or waters or on state or grant-in-aid trails if the person cannot properly reach and
77.16control the handle bars and reach the foot pegs while sitting upright on the seat of the
77.17all-terrain vehicle.
77.18(i) Notwithstanding paragraph (c), a nonresident at least 12 years old, but less than
77.1916 years old, may make a direct crossing of a public road right-of-way of a trunk, county
77.20state-aid, or county highway or operate an all-terrain vehicle on public lands and waters
77.21or state or grant-in-aid trails if:
77.22(1) the nonresident youth has in possession evidence of completing an all-terrain
77.23safety course offered by the ATV Safety Institute or another state as provided in section
77.2484.925 , subdivision 3; and
77.25(2) the nonresident youth is accompanied by a person 18 years of age or older who
77.26holds a valid driver's license.
77.27(j) A person 12 years of age but less than 16 years of age may operate an all-terrain
77.28vehicle on the bank, slope, or ditch of a public road right-of-way as permitted under
77.29section 84.928 if the person:
77.30(1) possesses a valid all-terrain vehicle safety certificate issued by the commissioner;
77.31and
77.32(2) is accompanied by a parent or legal guardian on a separate all-terrain vehicle.

77.33    Sec. 11. Minnesota Statutes 2012, section 84.928, subdivision 1, is amended to read:
77.34    Subdivision 1. Operation on roads and rights-of-way. (a) Unless otherwise
77.35allowed in sections 84.92 to 84.928, a person shall not operate an all-terrain vehicle in
78.1this state along or on the roadway, shoulder, or inside bank or slope of a public road
78.2right-of-way of a trunk, county state-aid, or county highway.
78.3    (b) A person may operate a class 1 all-terrain vehicle in the ditch or the outside
78.4bank or slope of a trunk, county state-aid, or county highway unless prohibited under
78.5paragraph (d) or (f).
78.6    (c) A person may operate a class 2 all-terrain vehicle:
78.7    (1) within the public road right-of-way of a county state-aid or county highway on
78.8the extreme right-hand side of the road and left turns may be made from any part of
78.9the road if it is safe to do so under the prevailing conditions, unless prohibited under
78.10paragraph (d) or (f). A person may operate a class 2 all-terrain vehicle;
78.11    (2) on the bank, slope, or ditch of a public road right-of-way of a trunk, county
78.12state-aid, or county highway but only to access businesses or make trail connections, and
78.13left turns may be made from any part of the road if it is safe to do so under the prevailing
78.14conditions, unless prohibited under paragraph (d) or (f); and
78.15    (3) on the bank or ditch of a public road right-of-way on a designated class 2
78.16all-terrain vehicle trail.
78.17    (d) A road authority as defined under section 160.02, subdivision 25, may after a
78.18public hearing restrict the use of all-terrain vehicles in the public road right-of-way under
78.19its jurisdiction.
78.20    (e) The restrictions in paragraphs (a), (d), (h), (i), and (j) do not apply to the
78.21operation of an all-terrain vehicle on the shoulder, inside bank or slope, ditch, or outside
78.22bank or slope of a trunk, interstate, county state-aid, or county highway:
78.23(1) that is part of a funded grant-in-aid trail; or
78.24(2) when the all-terrain vehicle is owned by or operated under contract with a publicly
78.25or privately owned utility or pipeline company and used for work on utilities or pipelines.
78.26    (f) The commissioner may limit the use of a right-of-way for a period of time if the
78.27commissioner determines that use of the right-of-way causes:
78.28    (1) degradation of vegetation on adjacent public property;
78.29    (2) siltation of waters of the state;
78.30    (3) impairment or enhancement to the act of taking game; or
78.31    (4) a threat to safety of the right-of-way users or to individuals on adjacent public
78.32property.
78.33    The commissioner must notify the road authority as soon as it is known that a closure
78.34will be ordered. The notice must state the reasons and duration of the closure.
78.35    (g) A person may operate an all-terrain vehicle registered for private use and used
78.36for agricultural purposes on a public road right-of-way of a trunk, county state-aid, or
79.1county highway in this state if the all-terrain vehicle is operated on the extreme right-hand
79.2side of the road, and left turns may be made from any part of the road if it is safe to do so
79.3under the prevailing conditions.
79.4    (h) A person shall not operate an all-terrain vehicle within the public road
79.5right-of-way of a trunk, county state-aid, or county highway from April 1 to August 1 in
79.6the agricultural zone unless the vehicle is being used exclusively as transportation to and
79.7from work on agricultural lands. This paragraph does not apply to an agent or employee
79.8of a road authority, as defined in section 160.02, subdivision 25, or the Department of
79.9Natural Resources when performing or exercising official duties or powers.
79.10    (i) A person shall not operate an all-terrain vehicle within the public road right-of-way
79.11of a trunk, county state-aid, or county highway between the hours of one-half hour after
79.12sunset to one-half hour before sunrise, except on the right-hand side of the right-of-way
79.13and in the same direction as the highway traffic on the nearest lane of the adjacent roadway.
79.14    (j) A person shall not operate an all-terrain vehicle at any time within the
79.15right-of-way of an interstate highway or freeway within this state.

79.16    Sec. 12. [84.973] POLLINATOR HABITAT PROGRAM.
79.17(a) The commissioner shall develop best management practices and habitat
79.18restoration guidelines for pollinator habitat enhancement. Best management practices
79.19and guidelines developed under this section must be used for all habitat enhancement or
79.20restoration of lands under the commissioner's control.
79.21(b) Prairie restorations conducted on state lands or with state funds must include
79.22an appropriate diversity of native species selected to provide habitat for pollinators
79.23throughout the growing season.

79.24    Sec. 13. Minnesota Statutes 2012, section 84D.108, subdivision 2, is amended to read:
79.25    Subd. 2. Permit requirements. (a) Service providers must complete invasive
79.26species training provided by the commissioner and pass an examination to qualify for a
79.27permit. Service provider permits are valid for three calendar years.
79.28(b) A $50 application and testing fee is required for service provider permit
79.29applications.
79.30(c) Persons working for a permittee must satisfactorily complete aquatic invasive
79.31species-related training provided by the commissioner, except as provided under
79.32paragraph (d).
79.33(d) A person working for and supervised by a permittee is not required to complete
79.34the training under paragraph (c) if the water-related equipment or other water-related
80.1structures remain on the riparian property owned or controlled by the permittee and are
80.2only removed from and placed into the same water of the state.

80.3    Sec. 14. Minnesota Statutes 2012, section 85.015, subdivision 13, is amended to read:
80.4    Subd. 13. Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton,
80.5Koochiching, and Itasca Counties. (a)(1) The Taconite Trail shall originate at Ely in St.
80.6Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to
80.7McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in
80.8Itasca County and there terminate;
80.9(2) The C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County
80.10and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand
80.11Marais in Cook County, thence northeasterly to the international boundary in the vicinity
80.12of the north shore of Lake Superior, and there terminate;
80.13(3) The Grand Marais to International Falls Trail shall originate in Grand Marais
80.14in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area,
80.15to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to
80.16Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St.
80.17Louis County to International Falls in Koochiching County, and there terminate;
80.18(4) The Matthew Lourey Trail shall originate in Duluth in St. Louis County and
80.19extend southerly to St. Croix Chengwatana State Forest in Pine County.
80.20(b) The trails shall be developed primarily for riding and hiking.
80.21(c) In addition to the authority granted in subdivision 1, lands and interests in lands
80.22for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring
80.23any land or interest in land by eminent domain the commissioner of administration shall
80.24obtain the approval of the governor. The governor shall consult with the Legislative
80.25Advisory Commission before granting approval. Recommendations of the Legislative
80.26Advisory Commission shall be advisory only. Failure or refusal of the commission to
80.27make a recommendation shall be deemed a negative recommendation.

80.28    Sec. 15. Minnesota Statutes 2012, section 85.052, subdivision 6, is amended to read:
80.29    Subd. 6. State park reservation system. (a) The commissioner may, by written
80.30order, develop reasonable reservation policies for campsites and other lodging. These
80.31policies are exempt from rulemaking provisions under chapter 14 and section 14.386
80.32does not apply.
80.33(b) The revenue collected from the state park reservation fee established under
80.34subdivision 5, including interest earned, shall be deposited in the state park account in the
81.1natural resources fund and is annually appropriated to the commissioner for the cost of
81.2the state park reservation system.
81.3EFFECTIVE DATE.This section is effective retroactively from March 1, 2012.

81.4    Sec. 16. Minnesota Statutes 2012, section 85.053, subdivision 8, is amended to read:
81.5    Subd. 8. Military personnel on leave; exemption. (a) A one-day permit, under
81.6subdivision 4, shall be issued without a fee for a motor vehicle being used by a person
81.7who is serving in active military service in any branch or unit of the United States armed
81.8forces and who is stationed outside Minnesota, during the period of active service and for
81.990 days immediately thereafter, if the person presents the person's current military orders
81.10to the park attendant on duty or other designee of the commissioner.
81.11    (b) For purposes of this section, "active service" has the meaning given under section
81.12190.05 , subdivision 5c, when performed outside Minnesota.
81.13(c) A permit is not required for a motor vehicle being used by military personnel or
81.14their dependents who have in their possession the annual pass for United States military
81.15and their dependents issued by the federal government for access to federal recreation sites.

81.16    Sec. 17. Minnesota Statutes 2012, section 85.054, is amended by adding a subdivision
81.17to read:
81.18    Subd. 18. La Salle Lake State Recreation Area. A state park permit is not required
81.19and a fee may not be charged for motor vehicle entry, use, or parking in La Salle Lake
81.20State Recreation Area unless the occupants of the vehicle enter, use, or park in a developed
81.21campground, overnight, or day-use area.

81.22    Sec. 18. Minnesota Statutes 2012, section 85.055, subdivision 1, is amended to read:
81.23    Subdivision 1. Fees. The fee for state park permits for:
81.24(1) an annual use of state parks is $25;
81.25(2) a second or subsequent vehicle state park permit is $18;
81.26(3) a state park permit valid for one day is $5;
81.27(4) a daily vehicle state park permit for groups is $3;
81.28(5) an annual permit for motorcycles is $20;
81.29(6) an employee's state park permit is without charge; and
81.30(7) a state park permit for disabled persons with disabilities under section 85.053,
81.31subdivision 7
, clauses (1) and (2) to (3), is $12.
81.32The fees specified in this subdivision include any sales tax required by state law.

82.1    Sec. 19. Minnesota Statutes 2012, section 85.055, subdivision 2, is amended to read:
82.2    Subd. 2. Fee deposit and appropriation. The fees collected under this section shall
82.3be deposited in the natural resources fund and credited to the state parks account. Money
82.4in the account, except for the electronic licensing system commission established by the
82.5commissioner under section 84.027, subdivision 15, and the state park reservation system
82.6fee established by the commissioner under section 85.052, subdivisions 5 and 6, is available
82.7for appropriation to the commissioner to operate and maintain the state park system.

82.8    Sec. 20. Minnesota Statutes 2012, section 85.42, is amended to read:
82.985.42 USER FEE; VALIDITY.
82.10(a) The fee for an annual cross-country ski pass is $19 for an individual age 16 and
82.11over. The fee for a three-year pass is $54 for an individual age 16 and over. This fee
82.12shall be collected at the time the pass is purchased. Three-year passes are valid for three
82.13years beginning the previous July 1. Annual passes are valid for one year beginning
82.14the previous July 1.
82.15(b) The cost for a daily cross-country skier pass is $5 for an individual age 16 and
82.16over. This fee shall be collected at the time the pass is purchased. The daily pass is valid
82.17only for the date designated on the pass form.
82.18(c) A pass must be signed by the skier across the front of the pass to be valid and
82.19becomes nontransferable on signing.
82.20(d) The commissioner and agents shall issue a duplicate pass to a person whose pass
82.21is lost or destroyed, using the process established under section 97A.405, subdivision 3,
82.22and rules adopted thereunder. The fee for a duplicate cross-country ski pass is $2.

82.23    Sec. 21. Minnesota Statutes 2012, section 89.0385, is amended to read:
82.2489.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST
82.25CERTIFICATION.
82.26(a) After each fiscal year, The commissioner shall certify the total costs incurred for
82.27forest management, forest improvement, and road improvement on state-managed lands
82.28during that each fiscal year. The commissioner shall distribute forest management receipts
82.29credited to various accounts according to this section.
82.30(b) The amount of the certified costs incurred for forest management activities on
82.31state lands shall be transferred from the account where receipts are deposited to the forest
82.32management investment account in the natural resources fund, except for those costs
82.33certified under section 16A.125. Transfers may occur quarterly, based on quarterly cost and
83.1revenue reports, throughout the fiscal year, with final certification and reconciliation after
83.2each fiscal year. Transfers in a fiscal year cannot exceed receipts credited to the account.

83.3    Sec. 22. Minnesota Statutes 2012, section 90.01, subdivision 4, is amended to read:
83.4    Subd. 4. Scaler. "Scaler" means a qualified bonded person designated by the
83.5commissioner to measure timber and cut forest products.

83.6    Sec. 23. Minnesota Statutes 2012, section 90.01, subdivision 5, is amended to read:
83.7    Subd. 5. State appraiser. "State appraiser" means an employee of the department
83.8designated by the commissioner to appraise state lands, which includes, but is not limited
83.9to, timber and other forest resource products, for volume, quality, and value.

83.10    Sec. 24. Minnesota Statutes 2012, section 90.01, subdivision 6, is amended to read:
83.11    Subd. 6. Timber. "Timber" means trees, shrubs, or woody plants, that will produce
83.12forest products of value whether standing or down, and including but not limited to logs,
83.13sawlogs, posts, poles, bolts, pulpwood, cordwood, fuelwood, woody biomass, lumber,
83.14 and woody decorative material.

83.15    Sec. 25. Minnesota Statutes 2012, section 90.01, subdivision 8, is amended to read:
83.16    Subd. 8. Permit holder. "Permit holder" means the person holding who is the
83.17signatory of a permit to cut timber on state lands.

83.18    Sec. 26. Minnesota Statutes 2012, section 90.01, subdivision 11, is amended to read:
83.19    Subd. 11. Effective permit. "Effective permit" means a permit for which the
83.20commissioner has on file full or partial surety security as required by section 90.161, or
83.21 90.162, 90.163, or 90.173 or, in the case of permits issued according to section 90.191 or
83.2290.195 , the commissioner has received a down payment equal to the full appraised value.

83.23    Sec. 27. Minnesota Statutes 2012, section 90.031, subdivision 4, is amended to read:
83.24    Subd. 4. Timber rules. The Executive Council may formulate and establish, from
83.25time to time, rules it deems advisable for the transaction of timber business of the state,
83.26including approval of the sale of timber on any tract in a lot exceeding 6,000 12,000 cords
83.27in volume when the sale is in the best interests of the state, and may abrogate, modify,
83.28or suspend rules at its pleasure.

83.29    Sec. 28. Minnesota Statutes 2012, section 90.041, subdivision 2, is amended to read:
84.1    Subd. 2. Trespass on state lands. The commissioner may compromise and settle,
84.2with the approval of notification to the attorney general, upon terms the commissioner
84.3deems just, any claim of the state for casual and involuntary trespass upon state lands or
84.4timber; provided that no claim shall be settled for less than the full value of all timber
84.5or other materials taken in casual trespass or the full amount of all actual damage or
84.6loss suffered by the state as a result. Upon request, the commissioner shall advise the
84.7Executive Council of any information acquired by the commissioner concerning any
84.8trespass on state lands, giving all details and names of witnesses and all compromises and
84.9settlements made under this subdivision.

84.10    Sec. 29. Minnesota Statutes 2012, section 90.041, subdivision 5, is amended to read:
84.11    Subd. 5. Forest improvement contracts. The commissioner may contract as part
84.12of the timber sale with the purchaser of state timber at either informal or auction sale
84.13for the following forest improvement work to be done on the land included within the
84.14sale area:. Forest improvement work may include activities relating to preparation of
84.15the site for seeding or planting of seedlings or trees, seeding or planting of seedlings or
84.16trees, and other activities relating related to forest regeneration or deemed necessary by
84.17the commissioner to accomplish forest management objectives, including those related
84.18to water quality protection, trail development, and wildlife habitat enhancement. A
84.19contract issued under this subdivision is not subject to the competitive bidding provisions
84.20of chapter 16C and is exempt from the contract approval provisions of section 16C.05,
84.21subdivision 2
. The bid value received in the sale of the timber and the contract bid
84.22cost of the improvement work may be combined and the total value may be considered
84.23by the commissioner in awarding forest improvement contracts under this section.
84.24The commissioner may refuse to accept any and all bids received and cancel a forest
84.25improvement contract sale for good and sufficient reasons.

84.26    Sec. 30. Minnesota Statutes 2012, section 90.041, subdivision 6, is amended to read:
84.27    Subd. 6. Sale of damaged timber. The commissioner may sell at public auction
84.28timber that has been damaged by fire, windstorm, flood, insect, disease, or other natural
84.29cause on notice that the commissioner considers reasonable when there is a high risk that
84.30the salvage value of the timber would be lost.

84.31    Sec. 31. Minnesota Statutes 2012, section 90.041, subdivision 9, is amended to read:
84.32    Subd. 9. Reoffering unsold timber. To maintain and enhance forest ecosystems on
84.33state forest lands, The commissioner may reoffer timber tracts remaining unsold under the
85.1provisions of section 90.101 below appraised value at public auction with the required
85.230-day notice under section 90.101, subdivision 2.

85.3    Sec. 32. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
85.4to read:
85.5    Subd. 10. Fees. (a) The commissioner may establish a fee schedule that covers the
85.6commissioner's cost of issuing, administering, and processing various permits, permit
85.7modifications, transfers, assignments, amendments, and other transactions necessary to the
85.8administration of activities under this chapter.
85.9(b) A fee established under this subdivision is not subject to the rulemaking
85.10provisions of chapter 14 and section 14.386 does not apply. The commissioner may
85.11establish fees under this subdivision notwithstanding section 16A.1283.

85.12    Sec. 33. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
85.13to read:
85.14    Subd. 11. Debarment. The commissioner may debar a permit holder if the holder
85.15is convicted in Minnesota at the gross misdemeanor or felony level of criminal willful
85.16trespass, theft, fraud, or antitrust violation involving state, federal, county, or privately
85.17owned timber in Minnesota or convicted in any other state involving similar offenses and
85.18penalties for timber owned in that state. The commissioner shall cancel and repossess the
85.19permit directly involved in the prosecution of the crime. The commissioner shall cancel
85.20and repossess all other state timber permits held by the permit holder after taking from
85.21all security deposits money to which the state is entitled. The commissioner shall return
85.22the remainder of the security deposits, if any, to the permit holder. The debarred permit
85.23holder is prohibited from bidding, possessing, or being employed on any state timber
85.24permit during the period of debarment. The period of debarment is not less than one year
85.25or greater than three years. The duration of the debarment is based on the severity of the
85.26violation, past history of compliance with timber permits, and the amount of loss incurred
85.27by the state arising from violations of timber permits.

85.28    Sec. 34. Minnesota Statutes 2012, section 90.045, is amended to read:
85.2990.045 APPRAISAL STANDARDS.
85.30By July 1, 1983, the commissioner shall establish specific timber appraisal standards
85.31according to which all timber appraisals will be conducted under this chapter. The
85.32standards shall include a specification of the maximum allowable appraisal sampling error,
85.33and including the procedures for tree defect allowance, tract area estimation, product
86.1volume estimation, and product value determination. The timber appraisal standards shall
86.2be included in each edition of the timber sales manual published by the commissioner. In
86.3addition to the duties pursuant to section 90.061, every state appraiser shall work within
86.4the guidelines of the timber appraisal standards. The standards shall not be subject to
86.5the rulemaking provisions of chapter 14.

86.6    Sec. 35. Minnesota Statutes 2012, section 90.061, subdivision 8, is amended to read:
86.7    Subd. 8. Appraiser authority; form of documents. State appraisers are
86.8empowered, with the consent of the commissioner, to perform any scaling, and generally
86.9to supervise the cutting and removal of timber and forest products on or from state lands
86.10so far as may be reasonably necessary to insure compliance with the terms of the permits
86.11or other contracts governing the same and protect the state from loss.
86.12The form of appraisal reports, records, and notes to be kept by state appraisers
86.13shall be as the commissioner prescribes.

86.14    Sec. 36. Minnesota Statutes 2012, section 90.101, subdivision 1, is amended to read:
86.15    Subdivision 1. Sale requirements. The commissioner may sell the timber on any
86.16tract of state land and may determine the number of sections or fractional sections of land
86.17to be included in the permit area covered by any one permit issued to the purchaser of
86.18timber on state lands, or in any one contract or other instrument relating thereto. No
86.19timber shall be sold, except (1) to the highest responsible bidder at public auction, or
86.20(2) if unsold at public auction, the commissioner may offer the timber for private sale
86.21for a period of no more than six months one year after the public auction to any person
86.22 responsible bidder who pays the appraised value for the timber. The minimum price shall
86.23be the appraised value as fixed by the report of the state appraiser. Sales may include tracts
86.24in more than one contiguous county or forestry administrative area and shall be held either
86.25in the county or forestry administrative area in which the tract is located or in an adjacent
86.26county or forestry administrative area that is nearest the tract offered for sale or that is
86.27most accessible to potential bidders. In adjoining counties or forestry administrative areas,
86.28sales may not be held less than two hours apart.

86.29    Sec. 37. Minnesota Statutes 2012, section 90.121, is amended to read:
86.3090.121 INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000
86.31CORDS.
87.1(a) The commissioner may sell the timber on any tract of state land in lots not
87.2exceeding 3,000 cords in volume, in the same manner as timber sold at public auction under
87.3section 90.101, and related laws, subject to the following special exceptions and limitations:
87.4(1) the commissioner shall offer all tracts authorized for sale by this section
87.5separately from the sale of tracts of state timber made pursuant to section 90.101;
87.6(2) no bidder may be awarded more than 25 percent of the total tracts offered at the
87.7first round of bidding unless fewer than four tracts are offered, in which case not more than
87.8one tract shall be awarded to one bidder. Any tract not sold at public auction may be offered
87.9for private sale as authorized by section 90.101, subdivision 1, 30 days after the auction to
87.10persons responsible bidders eligible under this section at the appraised value; and
87.11(3) no sale may be made to a person responsible bidder having more than 30
87.12employees. For the purposes of this clause, "employee" means an individual working in
87.13the timber or wood products industry for salary or wages on a full-time or part-time basis.
87.14(b) The auction sale procedure set forth in this section constitutes an additional
87.15alternative timber sale procedure available to the commissioner and is not intended to
87.16replace other authority possessed by the commissioner to sell timber in lots of 3,000
87.17cords or less.
87.18(c) Another bidder or the commissioner may request that the number of employees a
87.19bidder has pursuant to paragraph (a), clause (3), be confirmed by signed affidavit if there is
87.20evidence that the bidder may be ineligible due to exceeding the employee threshold. The
87.21commissioner shall request information from the commissioners of labor and industry and
87.22employment and economic development including the premiums paid by the bidder in
87.23question for workers' compensation insurance coverage for all employees of the bidder.
87.24The commissioner shall review the information submitted by the commissioners of labor
87.25and industry and employment and economic development and make a determination based
87.26on that information as to whether the bidder is eligible. A bidder is considered eligible and
87.27may participate in intermediate auctions until determined ineligible under this paragraph.

87.28    Sec. 38. Minnesota Statutes 2012, section 90.145, is amended to read:
87.2990.145 PURCHASER QUALIFICATIONS AND, REGISTRATION, AND
87.30REQUIREMENTS.
87.31    Subdivision 1. Purchaser qualifications requirements. (a) In addition to any other
87.32requirements imposed by this chapter, the purchaser of a state timber permit issued under
87.33section 90.151 must meet the requirements in paragraphs (b) to (d) (e).
87.34(b) The purchaser and or the purchaser's agents, employees, subcontractors, and
87.35assigns conducting logging operations on the timber permit must comply with general
88.1industry safety standards for logging adopted by the commissioner of labor and industry
88.2under chapter 182. The commissioner of natural resources shall may require a purchaser
88.3to provide proof of compliance with the general industry safety standards.
88.4(c) The purchaser and or the purchaser's agents, subcontractors, and assigns
88.5conducting logging operations on the timber permit must comply with the mandatory
88.6insurance requirements of chapter 176. The commissioner shall may require a purchaser
88.7to provide a copy of the proof of insurance required by section 176.130 before the start of
88.8harvesting operations on any permit.
88.9(d) Before the start of harvesting operations on any permit, the purchaser must certify
88.10that a foreperson or other designated employee who has a current certificate of completion,
88.11 which includes instruction in site-level forest management guidelines or best management
88.12practices, from the Minnesota Logger Education Program (MLEP), the Wisconsin Forest
88.13Industry Safety and Training Alliance (FISTA), or any similar continuous education
88.14program acceptable to the commissioner, is supervising active logging operations.
88.15(e) The purchaser and the purchaser's agents, employees, subcontractors, and assigns
88.16who will be involved with logging or scaling state timber must be in compliance with
88.17this chapter.
88.18    Subd. 2. Purchaser preregistration registration. To facilitate the sale of permits
88.19issued under section 90.151, the commissioner may establish a purchaser preregistration
88.20 registration system to verify the qualifications of a person as a responsible bidder to
88.21purchase a timber permit. Any system implemented by the commissioner shall be limited
88.22in scope to only that information that is required for the efficient administration of the
88.23purchaser qualification provisions requirements of this chapter and shall conform with the
88.24requirements of chapter 13. The registration system established under this subdivision is
88.25not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.

88.26    Sec. 39. Minnesota Statutes 2012, section 90.151, subdivision 1, is amended to read:
88.27    Subdivision 1. Issuance; expiration. (a) Following receipt of the down payment
88.28for state timber required under section 90.14 or 90.191, the commissioner shall issue a
88.29numbered permit to the purchaser, in a form approved by the attorney general, by the
88.30terms of which the purchaser shall be authorized to enter upon the land, and to cut and
88.31remove the timber therein described as designated for cutting in the report of the state
88.32appraiser, according to the provisions of this chapter. The permit shall be correctly
88.33dated and executed by the commissioner and signed by the purchaser. If a permit is not
88.34signed by the purchaser within 60 45 days from the date of purchase, the permit cancels
88.35and the down payment for timber required under section 90.14 forfeits to the state. The
89.1commissioner may grant an additional period for the purchaser to sign the permit, not to
89.2exceed five ten business days, provided the purchaser pays a $125 $200 penalty fee.
89.3    (b) The permit shall expire no later than five years after the date of sale as the
89.4commissioner shall specify or as specified under section 90.191, and the timber shall
89.5be cut and removed within the time specified therein. All cut timber, equipment, and
89.6buildings not removed from the land within 90 days after expiration of the permit shall
89.7become the property of the state. If additional time is needed, the permit holder must
89.8request, prior to the expiration date, and may be granted, for good and sufficient reasons,
89.9up to 90 additional days for the completion of skidding, hauling, and removing all
89.10equipment and buildings. All cut timber, equipment, and buildings not removed from the
89.11land after expiration of the permit becomes the property of the state.
89.12    (c) The commissioner may grant an additional period of time not to exceed 120 240
89.13 days for the removal of cut timber, equipment, and buildings upon receipt of such a written
89.14 request by the permit holder for good and sufficient reasons. The commissioner may grant
89.15a second period of time not to exceed 120 days for the removal of cut timber, equipment,
89.16and buildings upon receipt of a request by the permit holder for hardship reasons only.
89.17 The permit holder may combine in the written request under this paragraph the request
89.18for additional time under paragraph (b).

89.19    Sec. 40. Minnesota Statutes 2012, section 90.151, subdivision 2, is amended to read:
89.20    Subd. 2. Permit requirements. The permit shall state the amount of timber
89.21estimated for cutting on the land, the estimated value thereof, and the price at which it is
89.22sold in units of per thousand feet, per cord, per piece, per ton, or by whatever description
89.23sold, and shall specify that all landings of cut products shall be legibly marked with the
89.24assigned permit number. The permit shall provide for the continuous identification
89.25and control of the cut timber from the time of cutting until delivery to the consumer.
89.26The permit shall provide that failure to continuously identify the timber as specified in
89.27the permit constitutes trespass.

89.28    Sec. 41. Minnesota Statutes 2012, section 90.151, subdivision 3, is amended to read:
89.29    Subd. 3. Security provisions. The permit shall contain such provisions as may be
89.30necessary to secure to the state the title of all timber cut thereunder wherever found until
89.31full payment therefor and until all provisions of the permit have been fully complied
89.32with. The permit shall provide that from the date the same becomes effective cutting
89.33commences until the expiration thereof of the permit, including all extensions, the
89.34purchaser and successors in interest shall be liable to the state for the full permit price of
90.1all timber covered thereby, notwithstanding any subsequent damage or injury thereto or
90.2trespass thereon or theft thereof, and without prejudice to the right of the state to pursue
90.3such timber and recover the value thereof anywhere prior to the payment therefor in full to
90.4the state. If an effective permit is forfeited prior to any cutting activity, the purchaser is
90.5liable to the state for a sum equal to the down payment and bid guarantee. Upon recovery
90.6from any person other than the permit holder, the permit holder shall be deemed released
90.7to the extent of the net amount, after deducting all expenses of collecting same, recovered
90.8by the state from such other person.

90.9    Sec. 42. Minnesota Statutes 2012, section 90.151, subdivision 4, is amended to read:
90.10    Subd. 4. Permit terms. Once a permit becomes effective and cutting commences,
90.11the permit holder is liable to the state for the permit price for all timber required to be cut,
90.12including timber not cut. The permit shall provide that all timber sold or designated for
90.13cutting shall be cut without in such a manner so as not to cause damage to other timber;
90.14that the permit holder shall remove all timber authorized and designated to be cut under
90.15the permit; that timber sold by board measure identified in the permit, but later determined
90.16by the commissioner not to be convertible into board the permit's measure, shall be paid
90.17for by the piece or cord or other unit of measure according to the size, species, or value, as
90.18may be determined by the commissioner; and that all timber products, except as specified
90.19by the commissioner, shall be scaled and the final settlement for the timber cut shall be
90.20made on this scale; and that the permit holder shall pay to the state the permit price for
90.21all timber authorized to be cut, including timber not cut.

90.22    Sec. 43. Minnesota Statutes 2012, section 90.151, subdivision 6, is amended to read:
90.23    Subd. 6. Notice and approval required. The permit shall provide that the permit
90.24holder shall not start cutting any state timber nor clear building sites landings nor logging
90.25roads until the commissioner has been notified and has given prior approval to such
90.26cutting operations. Approval shall not be granted until the permit holder has completed
90.27a presale conference with the state appraiser designated to supervise the cutting. The
90.28permit holder shall also give prior notice whenever permit operations are to be temporarily
90.29halted, whenever permit operations are to be resumed, and when permit operations are to
90.30be completed.

90.31    Sec. 44. Minnesota Statutes 2012, section 90.151, subdivision 7, is amended to read:
90.32    Subd. 7. Liability for timber cut in trespass. The permit shall provide that the
90.33permit holder shall pay the permit price value for any timber sold which is negligently
91.1destroyed or damaged by the permit holder in cutting or removing other timber sold. If the
91.2permit holder shall cut or remove or negligently destroy or damage any timber upon the
91.3land described, not sold under the permit, except such timber as it may be necessary to cut
91.4and remove in the construction of necessary logging roads and landings approved as to
91.5location and route by the commissioner, such timber shall be deemed to have been cut in
91.6trespass. The permit holder shall be liable for any such timber and recourse may be had
91.7upon the bond security deposit.

91.8    Sec. 45. Minnesota Statutes 2012, section 90.151, subdivision 8, is amended to read:
91.9    Subd. 8. Suspension; cancellation. The permit shall provide that the commissioner
91.10shall have the power to order suspension of all operations under the permit when in the
91.11commissioner's judgment the conditions thereof have not been complied with and any
91.12timber cut or removed during such suspension shall be deemed to have been cut in trespass;
91.13that the commissioner may cancel the permit at any time when in the commissioner's
91.14judgment the conditions thereof have not been complied with due to a breach of the permit
91.15conditions and such cancellation shall constitute repossession of the timber by the state;
91.16that the permit holder shall remove equipment and buildings from such land within 90 days
91.17after such cancellation; that, if the purchaser at any time fails to pay any obligations to the
91.18state under any other permits, any or all permits may be canceled; and that any timber cut
91.19or removed in violation of the terms of the permit or of any law shall constitute trespass.

91.20    Sec. 46. Minnesota Statutes 2012, section 90.151, subdivision 9, is amended to read:
91.21    Subd. 9. Slashings disposal. The permit shall provide that the permit holder shall
91.22burn or otherwise dispose of or treat all slashings or other refuse resulting from cutting
91.23operations, as specified in the permit, in the manner now or hereafter provided by law.

91.24    Sec. 47. Minnesota Statutes 2012, section 90.161, is amended to read:
91.2590.161 SURETY BONDS FOR AUCTION SECURITY DEPOSITS
91.26REQUIRED FOR EFFECTIVE TIMBER PERMITS.
91.27    Subdivision 1. Bond Security deposit required. (a) Except as otherwise provided
91.28by law, the purchaser of any state timber, before any timber permit becomes effective for
91.29any purpose, shall give a good and valid bond security in the form of cash; a certified
91.30check; a cashier's check; a postal, bank, or express money order; a corporate surety bond;
91.31or an irrevocable bank letter of credit to the state of Minnesota equal to the value of all
91.32timber covered or to be covered by the permit, as shown by the sale price bid and the
92.1appraisal report as to quantity, less the amount of any payments pursuant to sections
92.2 section 90.14 and 90.163.
92.3(b) The bond security deposit shall be conditioned upon the faithful performance
92.4by the purchaser and successors in interest of all terms and conditions of the permit and
92.5all requirements of law in respect to timber sales. The bond security deposit shall be
92.6approved in writing by the commissioner and filed for record in the commissioner's office.
92.7(c) In the alternative to cash and bond requirements, but upon the same conditions,
92.8 A purchaser may post bond for 100 percent of the purchase price and request refund of the
92.9amount of any payments pursuant to sections section 90.14 and 90.163. The commissioner
92.10may credit the refund to any other permit held by the same permit holder if the permit is
92.11delinquent as provided in section 90.181, subdivision 2, or may credit the refund to any
92.12other permit to which the permit holder requests that it be credited.
92.13(d) In the event of a default, the commissioner may take from the deposit the sum of
92.14money to which the state is entitled. The commissioner shall return the remainder of the
92.15deposit, if any, to the person making the deposit. When cash is deposited as security, it
92.16shall be applied to the amount due when a statement is prepared and transmitted to the
92.17permit holder according to section 90.181. Any balance due to the state shall be shown on
92.18the statement and shall be paid as provided in section 90.181. Any amount of the deposit
92.19in excess of the amount determined to be due according to section 90.181 shall be returned
92.20to the permit holder when a final statement is transmitted under section 90.181. All or
92.21part of a cash deposit may be withheld from application to an amount due on a nonfinal
92.22statement if it appears that the total amount due on the permit will exceed the bid price.
92.23(e) If an irrevocable bank letter of credit is provided as security under paragraph
92.24(a), at the written request of the permittee, the commissioner shall annually allow the
92.25amount of the bank letter of credit to be reduced by an amount proportionate to the value
92.26of timber that has been harvested and for which the state has received payment under the
92.27timber permit. The remaining amount of the bank letter of credit after a reduction under
92.28this paragraph must not be less than the value of the timber remaining to be harvested
92.29under the timber permit.
92.30(f) If cash; a certified check; a cashier's check; a personal check; or a postal, bank, or
92.31express money order is provided as security under paragraph (a) and no cutting of state
92.32timber has taken place on the permit, the commissioner may credit the security provided,
92.33less any deposit required under section 90.14, to any other permit to which the permit
92.34holder requests in writing that it be credited.
93.1    Subd. 2. Failure to bond provide security deposit. If bond the security deposit is
93.2not furnished, no harvesting may occur and the down payment for timber 15 percent of the
93.3permit's purchase price shall forfeit to the state when the permit expires.
93.4    Subd. 3. Subrogation. In case of default When security is provided by surety
93.5bond and the permit holder defaults in payment by the permit holder, the surety upon the
93.6bond shall make payment in full to the state of all sums of money due under such permit;
93.7and thereupon such surety shall be deemed immediately subrogated to all the rights of
93.8the state in the timber so paid for; and such subrogated party may pursue the timber and
93.9recover therefor, or have any other appropriate relief in relation thereto which the state
93.10might or could have had if such surety had not made such payment. No assignment or
93.11other writing on the part of the state shall be necessary to make such subrogation effective,
93.12but the certificate signed by and bearing the official seal of the commissioner, showing the
93.13amount of such timber, the lands from which it was cut or upon which it stood, and the
93.14amount paid therefor, shall be prima facie evidence of such facts.
93.15    Subd. 4. Change of security. Prior to any harvest cutting activity, or activities
93.16incidental to the preparation for harvest, a purchaser having posted a bond security deposit
93.17 for 100 percent of the purchase price of a sale may request the release of the bond security
93.18 and the commissioner shall grant the release upon cash payment to the commissioner of
93.1915 percent of the appraised value of the sale, plus eight percent interest on the appraised
93.20value of the sale from the date of purchase to the date of release while retaining, or upon
93.21repayment of, the permit's down payment and bid guarantee deposit requirement.
93.22    Subd. 5. Return of security. Any security required under this section shall be
93.23returned to the purchaser within 60 days after the final scale.

93.24    Sec. 48. Minnesota Statutes 2012, section 90.162, is amended to read:
93.2590.162 ALTERNATIVE TO BOND OR DEPOSIT REQUIREMENTS
93.26 SECURING TIMBER PERMITS WITH CUTTING BLOCKS.
93.27In lieu of the bond or cash security deposit equal to the value of all timber covered
93.28by the permit required by section 90.161 or 90.173, a purchaser of state timber may elect
93.29in writing on a form prescribed by the attorney general to give good and valid surety to the
93.30state of Minnesota equal to the purchase price for any designated cutting block identified
93.31on the permit before the date the purchaser enters upon the land to begin harvesting the
93.32timber on the designated cutting block.

93.33    Sec. 49. [90.164] TIMBER PERMIT DEVELOPMENT OPTION.
94.1With the completion of the presale conference requirement under section 90.151,
94.2subdivision 6, a permit holder may access the permit area in advance of the permit being
94.3fully secured as required by section 90.161, for the express purpose of clearing approved
94.4landings and logging roads. No cutting of state timber except that incidental to the clearing
94.5of approved landings and logging roads is allowed under this section.

94.6    Sec. 50. Minnesota Statutes 2012, section 90.171, is amended to read:
94.790.171 ASSIGNMENT OF AUCTION TIMBER PERMITS.
94.8Any permit sold at public auction may be assigned upon written approval of the
94.9commissioner. The assignment of any permit shall be signed and acknowledged by the
94.10permit holder. The commissioner shall not approve any assignment until the assignee has
94.11been determined to meet the qualifications of a responsible bidder and has given to the state
94.12a bond security deposit which shall be substantially in the form of, and shall be deemed
94.13of the same effect as, the bond security deposit required of the original purchaser. The
94.14commissioner may accept the an agreement of the assignee and any corporate surety upon
94.15such an original bond, substituting the assignee in the place of such the original purchaser
94.16and continuing such the original bond in full force and effect, as to the assignee. Thereupon
94.17but not otherwise the permit holder making the assignment shall be released from all
94.18liability arising or accruing from actions taken after the assignment became effective.

94.19    Sec. 51. Minnesota Statutes 2012, section 90.181, subdivision 2, is amended to read:
94.20    Subd. 2. Deferred payments. (a) If the amount of the statement is not paid within
94.2130 days of the date thereof, it shall bear interest at the rate determined pursuant to section
94.2216A.124 , except that the purchaser shall not be required to pay interest that totals $1 or
94.23less. If the amount is not paid within 60 days, the commissioner shall place the account in
94.24the hands of the commissioner of revenue according to chapter 16D, who shall proceed to
94.25collect the same. When deemed in the best interests of the state, the commissioner shall
94.26take possession of the timber for which an amount is due wherever it may be found and
94.27sell the same informally or at public auction after giving reasonable notice.
94.28(b) The proceeds of the sale shall be applied, first, to the payment of the expenses
94.29of seizure and sale; and, second, to the payment of the amount due for the timber, with
94.30interest; and the surplus, if any, shall belong to the state; and, in case a sufficient amount is
94.31not realized to pay these amounts in full, the balance shall be collected by the attorney
94.32general. Neither payment of the amount, nor the recovery of judgment therefor, nor
94.33satisfaction of the judgment, nor the seizure and sale of timber, shall release the sureties
94.34on any bond security deposit given pursuant to this chapter, or preclude the state from
95.1afterwards claiming that the timber was cut or removed contrary to law and recovering
95.2damages for the trespass thereby committed, or from prosecuting the offender criminally.

95.3    Sec. 52. Minnesota Statutes 2012, section 90.191, subdivision 1, is amended to read:
95.4    Subdivision 1. Sale requirements. The commissioner may sell the timber on any
95.5tract of state land in lots not exceeding 500 cords in volume, without formalities but for
95.6not less than the full appraised value thereof, to any person. No sale shall be made under
95.7this section to any person holding two more than four permits issued hereunder which are
95.8still in effect;. except that (1) a partnership as defined in chapter 323, which may include
95.9spouses but which shall provide evidence that a partnership exists, may be holding two
95.10permits for each of not more than three partners who are actively engaged in the business
95.11of logging or who are the spouses of persons who are actively engaged in the business of
95.12logging with that partnership; and (2) a corporation, a majority of whose shares and voting
95.13power are owned by natural persons related to each other within the fourth degree of
95.14kindred according to the rules of the civil law or their spouses or estates, may be holding
95.15two permits for each of not more than three shareholders who are actively engaged in the
95.16business of logging or who are the spouses of persons who are actively engaged in the
95.17business of logging with that corporation.

95.18    Sec. 53. Minnesota Statutes 2012, section 90.193, is amended to read:
95.1990.193 EXTENSION OF TIMBER PERMITS.
95.20The commissioner may, in the case of an exceptional circumstance beyond the
95.21control of the timber permit holder which makes it unreasonable, impractical, and not
95.22feasible to complete cutting and removal under the permit within the time allowed, grant
95.23an one regular extension of for one year. A written request for the regular extension must
95.24be received by the commissioner before the permit expires. The request must state the
95.25reason the extension is necessary and be signed by the permit holder. An interest rate of
95.26eight percent may be charged for the period of extension.

95.27    Sec. 54. Minnesota Statutes 2012, section 90.195, is amended to read:
95.2890.195 SPECIAL USE AND PRODUCT PERMIT.
95.29(a) The commissioner may issue a permit to salvage or cut not to exceed 12 cords of
95.30fuelwood per year for personal use from either or both of the following sources: (1) dead,
95.31down, and diseased damaged trees; (2) other trees that are of negative value under good
95.32forest management practices. The permits may be issued for a period not to exceed one
95.33year. The commissioner shall charge a fee for the permit that shall cover the commissioner's
96.1cost of issuing the permit and as provided under section 90.041, subdivision 10. The fee
96.2 shall not exceed the current market value of fuelwood of similar species, grade, and volume
96.3that is being sold in the area where the salvage or cutting is authorized under the permit.
96.4(b) The commissioner may issue a special product permit under section 89.42 for
96.5commercial use, which may include incidental volumes of boughs, gravel, hay, biomass,
96.6and other products derived from forest management activities. The value of the products
96.7is the current market value of the products that are being sold in the area. The permit may
96.8be issued for a period not to exceed one year and the commissioner shall charge a fee for
96.9the permit as provided under section 90.041, subdivision 10.
96.10(c) The commissioner may issue a special use permit for incidental volumes of
96.11timber from approved right-of-way road clearing across state land for the purpose of
96.12accessing a state timber permit. The permit shall include the volume and value of timber
96.13to be cleared and may be issued for a period not to exceed one year. A presale conference
96.14as required under section 90.151, subdivision 6, must be completed before the start of
96.15any activities under the permit.

96.16    Sec. 55. Minnesota Statutes 2012, section 90.201, subdivision 2a, is amended to read:
96.17    Subd. 2a. Prompt payment of refunds. Any refund of cash that is due to a permit
96.18holder as determined on a final statement transmitted pursuant to section 90.181 or a
96.19refund of cash made pursuant to section 90.161, subdivision 1, or 90.173, paragraph
96.20(a)
, shall be paid to the permit holder according to section 16A.124 unless the refund is
96.21credited on another permit as provided in this chapter.

96.22    Sec. 56. Minnesota Statutes 2012, section 90.211, is amended to read:
96.2390.211 PURCHASE MONEY, WHEN FORFEITED.
96.24If the holder of an effective permit begins to cut and then fails to cut complete any
96.25part thereof of the permit before the expiration of the permit, the permit holder shall
96.26nevertheless pay the price therefor; but under no circumstances shall timber be cut after
96.27the expiration of the permit or extension thereof.

96.28    Sec. 57. Minnesota Statutes 2012, section 90.221, is amended to read:
96.2990.221 TIMBER SALES RECORDS.
96.30The commissioner shall keep timber sales records, including the description of each
96.31tract of land from which any timber is sold; the date of the report of the state appraisers;
96.32the kind, amount, and value of the timber as shown by such report; the date of the sale;
96.33the price for which the timber was sold; the name of the purchaser; the number, date
97.1of issuance and date of expiration of each permit; the date of any assignment of the
97.2permit; the name of the assignee; the dates of the filing and the amounts of the respective
97.3bonds security deposits by the purchaser and assignee; the names of the sureties thereon;
97.4the amount of timber taken from the land; the date of the report of the scaler and state
97.5appraiser; the names of the scaler and the state appraiser who scaled the timber; and the
97.6amount paid for such timber and the date of payment.

97.7    Sec. 58. Minnesota Statutes 2012, section 90.252, subdivision 1, is amended to read:
97.8    Subdivision 1. Consumer scaling. The commissioner may enter into an agreement
97.9with either a timber sale permittee, or the purchaser of the cut products, or both, so
97.10that the scaling of the cut timber and the collection of the payment for the same can be
97.11consummated by the consumer state. Such an agreement shall be approved as to form and
97.12content by the attorney general and shall provide for a bond or cash in lieu of a bond and
97.13such other safeguards as are necessary to protect the interests of the state. The scaling
97.14and payment collection procedure may be used for any state timber sale, except that no
97.15permittee who is also the consumer shall both cut and scale the timber sold unless such
97.16scaling is supervised by a state scaler.

97.17    Sec. 59. Minnesota Statutes 2012, section 90.301, subdivision 2, is amended to read:
97.18    Subd. 2. Seizure of unlawfully cut timber. The commissioner may take possession
97.19of any timber hereafter unlawfully cut upon or taken from any land owned by the state
97.20wherever found and may sell the same informally or at public auction after giving such
97.21notice as the commissioner deems reasonable and after deducting all the expenses of such
97.22sale the proceeds thereof shall be paid into the state treasury to the credit of the proper
97.23fund; and when any timber so unlawfully cut has been intermingled with any other timber
97.24or property so that it cannot be identified or plainly separated therefrom the commissioner
97.25may so seize and sell the whole quantity so intermingled and, in such case, the whole
97.26quantity of such timber shall be conclusively presumed to have been unlawfully taken
97.27from state land. When the timber unlawfully cut or removed from state land is so seized
97.28and sold, the seizure shall not in any manner relieve the trespasser who cut or removed, or
97.29caused the cutting or removal of, any such timber from the full liability imposed by this
97.30chapter for the trespass so committed, but the net amount realized from such sale shall
97.31be credited on whatever judgment is recovered against such trespasser, if the trespass
97.32was deemed to be casual and involuntary.

97.33    Sec. 60. Minnesota Statutes 2012, section 90.301, subdivision 4, is amended to read:
98.1    Subd. 4. Apprehension of trespassers; reward. The commissioner may offer a
98.2reward to be paid to a person giving to the proper authorities any information that leads to
98.3the conviction of a person violating this chapter. The reward is limited to the greater of
98.4$100 or ten percent of the single stumpage value of any timber unlawfully cut or removed.
98.5The commissioner shall pay the reward from funds appropriated for that purpose or from
98.6receipts from the sale of state timber. A reward shall not be paid to salaried forest officers,
98.7state appraisers, scalers, conservation officers, or licensed peace officers.

98.8    Sec. 61. Minnesota Statutes 2012, section 90.41, subdivision 1, is amended to read:
98.9    Subdivision 1. Violations and penalty. (a) Any state scaler or state appraiser who
98.10shall accept any compensation or gratuity for services as such from any other source
98.11except the state of Minnesota, or any state scaler, or other person authorized to scale state
98.12timber, or state appraiser, who shall make any false report, or insert in any such report any
98.13false statement, or shall make any such report without having examined the land embraced
98.14therein or without having actually been upon the land, or omit from any such report any
98.15statement required by law to be made therein, or who shall fail to report any known trespass
98.16committed upon state lands, or who shall conspire with any other person in any manner, by
98.17act or omission or otherwise, to defraud or unlawfully deprive the state of Minnesota of any
98.18land or timber, or the value thereof, shall be guilty of a felony. Any material discrepancy
98.19between the facts and the scale returned by any such person scaling timber for the state
98.20shall be considered prima facie evidence that such person is guilty of violating this statute.
98.21(b) No such appraiser or scaler who has been once discharged for cause shall ever
98.22again be appointed. This provision shall not apply to resignations voluntarily made by and
98.23accepted from such employees.

98.24    Sec. 62. Minnesota Statutes 2012, section 93.46, is amended by adding a subdivision
98.25to read:
98.26    Subd. 10. Scram mining. "Scram mining" means a mining operation that produces
98.27natural iron ore, natural iron ore concentrates, or taconite ore as described in section 93.20,
98.28subdivisions 12 to 18, from previously developed stockpiles, tailing basins, underground
98.29mine workings, or open pits and that involves no more than 80 acres of land not previously
98.30affected by mining, or more than 80 acres of land not previously affected by mining
98.31if the operator can demonstrate that impacts would be substantially the same as other
98.32scram operations. "Land not previously affected by mining" means land upon which mine
98.33wastes have not been deposited and land from which materials have not been removed in
98.34connection with the production or extraction of metallic minerals.

99.1    Sec. 63. Minnesota Statutes 2012, section 93.481, subdivision 3, is amended to read:
99.2    Subd. 3. Term of permit; amendment. (a) A permit issued by the commissioner
99.3pursuant to this section shall be granted for the term determined necessary by the
99.4commissioner for the completion of the proposed mining operation, including reclamation
99.5or restoration. The term of a scram mining permit for iron ore or taconite shall be
99.6determined in the same manner as a permit to mine for an iron ore or taconite mining
99.7operation.
99.8(b) A permit may be amended upon written application to the commissioner. A
99.9permit amendment application fee must be submitted with the written application. The
99.10permit amendment application fee is ten percent of the amount provided for in subdivision
99.111, clause (3), for an application for the applicable permit to mine. If the commissioner
99.12determines that the proposed amendment constitutes a substantial change to the permit,
99.13the person applying for the amendment shall publish notice in the same manner as for a
99.14new permit, and a hearing shall be held if written objections are received in the same
99.15manner as for a new permit. An amendment may be granted by the commissioner if the
99.16commissioner determines that lawful requirements have been met.

99.17    Sec. 64. [93.61] DRILL CORE LIBRARY ACCESS.
99.18Consistent with section 13.03, subdivision 3, a person shall not be required to pay a
99.19fee to access exploration data, exploration drill core data, mineral evaluation data, and
99.20mining data stored in the drill core library located in Hibbing, Minnesota, and managed
99.21by the commissioner of natural resources. The library shall be open during regular
99.22business hours.

99.23    Sec. 65. Minnesota Statutes 2012, section 97A.401, subdivision 3, is amended to read:
99.24    Subd. 3. Taking, possessing, and transporting wild animals for certain
99.25purposes. (a) Except as provided in paragraph (b), special permits may be issued without
99.26a fee to take, possess, and transport wild animals as pets and for scientific, educational,
99.27rehabilitative, wildlife disease prevention and control, and exhibition purposes. The
99.28commissioner shall prescribe the conditions for taking, possessing, transporting, and
99.29disposing of the wild animals.
99.30(b) A special permit may not be issued to take or possess wild or native deer for
99.31exhibition, propagation, or as pets.
99.32(c) Nonresident professional wildlife rehabilitators with a federal rehabilitation
99.33permit may possess and transport wildlife affected by oil spills.

100.1    Sec. 66. [103G.217] DRIFTLESS AREA WATER RESOURCES.
100.2(a) Groundwater discharge from natural springs and seepage areas in the driftless
100.3area of Minnesota, corresponding to the area of the state contained within the boundaries
100.4of the Department of Natural Resources Paleozoic Plateau Ecological Section, is vital to
100.5sustaining the coldwater aquatic ecosystems in the region, as well as the recreational,
100.6commercial, agricultural, environmental, aesthetic, and economic well-being of the region.
100.7(b) Within the boundaries of the Department of Natural Resources Paleozoic Plateau
100.8Ecological Section, no excavation or mining of silica sand, including, but not limited to,
100.9digging, excavating, mining, drilling, blasting, tunneling, dredging, stripping, or shafting,
100.10may occur within one mile of a designated trout stream as listed in Minnesota Rules unless
100.11a silica sand mining trout stream setback permit has been issued by the commissioner.
100.12(c) Before issuing a permit under this section, the commissioner shall:
100.13(1) require a project proposer to do a hydrogeological evaluation and collect any
100.14other information necessary to assess potential impacts to hydrogeological features,
100.15including private and public drinking water supply wells; and
100.16(2) identify appropriate setbacks from designated trout streams, springs, and other
100.17hydrogeologic features and any other restrictions necessary to protect trout stream water
100.18quantity, quality, and habitat.
100.19(d) The commissioner may assess the project proposer fees to cover the reasonable
100.20costs of duties performed under this section.
100.21EFFECTIVE DATE.This section is effective the day following final enactment
100.22and applies to new silica sand mining projects and projects for which environmental
100.23review documents have been noticed for public comments after April 30, 2013.

100.24    Sec. 67. Minnesota Statutes 2012, section 103G.265, subdivision 2, is amended to read:
100.25    Subd. 2. Diversion greater than 2,000,000 gallons per day. A water use permit
100.26or a plan that requires a permit or the commissioner's approval, involving a diversion of
100.27waters of the state of more than 2,000,000 gallons per day average in a 30-day period,
100.28to a place outside of this state or from the basin of origin within this state may not be
100.29granted or approved until:
100.30(1) a determination is made by the commissioner that the water remaining in the
100.31basin of origin will be adequate to meet the basin's water resources needs during the
100.32specified life of the diversion project and, for groundwater, the diversion meets the
100.33applicable standards under section 103G.287, subdivision 5; and
100.34(2) approval of the diversion is given by the legislature.

101.1    Sec. 68. Minnesota Statutes 2012, section 103G.265, subdivision 3, is amended to read:
101.2    Subd. 3. Consumptive use of more than 2,000,000 gallons per day. (a) Except
101.3as provided in paragraph (b), A water use permit or a plan that requires a permit or the
101.4commissioner's approval, involving a consumptive use of more than 2,000,000 gallons per
101.5day average in a 30-day period, may not be granted or approved until:
101.6(1) a determination is made by the commissioner that the water remaining in the
101.7basin of origin will be adequate to meet the basin's water resources needs during the
101.8specified life of the consumptive use and, for groundwater, the consumptive use meets the
101.9applicable standards under section 103G.287, subdivision 5; and
101.10(2) approval of the consumptive use is given by the legislature.
101.11(b) Legislative approval under paragraph (a), clause (2), is not required for a
101.12consumptive use in excess of 2,000,000 gallons per day average in a 30-day period for:
101.13(1) a domestic water supply, excluding industrial and commercial uses of a
101.14municipal water supply;
101.15(2) agricultural irrigation and processing of agricultural products;
101.16(3) construction and mine land dewatering;
101.17(4) pollution abatement or remediation; and
101.18(5) fish and wildlife enhancement projects using surface water sources.

101.19    Sec. 69. Minnesota Statutes 2012, section 103G.271, subdivision 1, is amended to read:
101.20    Subdivision 1. Permit required. (a) Except as provided in paragraph (b), the state,
101.21a person, partnership, or association, private or public corporation, county, municipality,
101.22or other political subdivision of the state may not appropriate or use waters of the state
101.23without a water use permit from the commissioner.
101.24(b) This section does not apply to use for a water supply by less than 25 persons
101.25for domestic purposes, except as required by the commissioner under section 103G.287,
101.26subdivision 4, paragraph (b).
101.27(c) The commissioner may issue a state general permit for appropriation of water to a
101.28governmental subdivision or to the general public. The general permit may authorize more
101.29than one project and the appropriation or use of more than one source of water. Water use
101.30permit processing fees and reports required under subdivision 6 and section 103G.281,
101.31subdivision 3
, are required for each project or water source that is included under a general
101.32permit, except that no fee is required for uses totaling less than 15,000,000 gallons annually.

101.33    Sec. 70. Minnesota Statutes 2012, section 103G.271, subdivision 4, is amended to read:
102.1    Subd. 4. Minimum use exemption and local approval of low use permits. (a)
102.2Except for local permits under section 103B.211, subdivision 4, a water use permit is not
102.3required for the appropriation and use of less than a minimum amount prescribed by the
102.4commissioner by rule 10,000 gallons per day and totaling no more than 1,000,000 gallons
102.5per year, except as required by the commissioner under section 103G.287, subdivision 4,
102.6paragraph (b).
102.7(b) Water use permits for more than the minimum amount but less than an
102.8intermediate amount prescribed by rule must be processed and approved at the municipal,
102.9county, or regional level based on rules adopted by the commissioner.
102.10(c) The rules must include provisions for reporting to the commissioner the amounts
102.11of water appropriated under local permits.

102.12    Sec. 71. Minnesota Statutes 2012, section 103G.287, subdivision 1, is amended to read:
102.13    Subdivision 1. Applications for groundwater appropriations; preliminary well
102.14construction approval. (a) Groundwater use permit applications are not complete until
102.15the applicant has supplied:
102.16(1) a water well record as required by section 103I.205, subdivision 9, information
102.17on the subsurface geologic formations penetrated by the well and the formation or aquifer
102.18that will serve as the water source, and geologic information from test holes drilled to
102.19locate the site of the production well;
102.20(2) the maximum daily, seasonal, and annual pumpage rates and volumes being
102.21requested;
102.22(3) information on groundwater quality in terms of the measures of quality
102.23commonly specified for the proposed water use and details on water treatment necessary
102.24for the proposed use;
102.25(4) an inventory of existing wells within 1-1/2 miles of the proposed production well
102.26or within the area of influence, as determined by the commissioner. The inventory must
102.27include information on well locations, depths, geologic formations, depth of the pump or
102.28intake, pumping and nonpumping water levels, and details of well construction; and
102.29(5) the results of an aquifer test completed according to specifications approved by
102.30the commissioner. The test must be conducted at the maximum pumping rate requested
102.31in the application and for a length of time adequate to assess or predict impacts to other
102.32wells and surface water and groundwater resources. The permit applicant is responsible
102.33for all costs related to the aquifer test, including the construction of groundwater and
102.34surface water monitoring installations, and water level readings before, during, and after
102.35the aquifer test; and
103.1(6) the results of any assessments conducted by the commissioner under paragraph (c).
103.2(b) The commissioner may waive an application requirement in this subdivision
103.3if the information provided with the application is adequate to determine whether the
103.4proposed appropriation and use of water is sustainable and will protect ecosystems, water
103.5quality, and the ability of future generations to meet their own needs.
103.6(c) The commissioner shall provide an assessment of a proposed well needing a
103.7groundwater appropriation permit. The commissioner shall evaluate the information
103.8submitted as required under section 103I.205, subdivision 1, paragraph (f), and determine
103.9whether the anticipated appropriation request is likely to meet the applicable requirements
103.10of this chapter. If the appropriation request is likely to meet applicable requirements, the
103.11commissioner shall provide the person submitting the information with a letter providing
103.12preliminary approval to construct the well.

103.13    Sec. 72. Minnesota Statutes 2012, section 103G.287, subdivision 4, is amended to read:
103.14    Subd. 4. Groundwater management areas. (a) The commissioner may designate
103.15groundwater management areas and limit total annual water appropriations and uses within
103.16a designated area to ensure sustainable use of groundwater that protects ecosystems, water
103.17quality, and the ability of future generations to meet their own needs. Water appropriations
103.18and uses within a designated management area must be consistent with a plan approved by
103.19the commissioner that addresses water conservation requirements and water allocation
103.20priorities established in section 103G.261.
103.21(b) Notwithstanding section 103G.271, subdivision 1, paragraph (b), and Minnesota
103.22Rules, within designated groundwater management areas, the commissioner may require
103.23general permits as specified in section 103G.271, subdivision 1, paragraph (c), for water
103.24users using less than 10,000 gallons per day or 1,000,000 gallons per year and water
103.25suppliers serving less than 25 persons for domestic purposes. The commissioner may
103.26waive the requirements under section 103G.281 for general permits issued under this
103.27paragraph, and the fee specified in section 103G.301, subdivision 2, paragraph (c), does
103.28not apply to general permits issued under this paragraph.

103.29    Sec. 73. Minnesota Statutes 2012, section 103G.287, subdivision 5, is amended to read:
103.30    Subd. 5. Interference with other wells Sustainability standard. The
103.31commissioner may issue water use permits for appropriation from groundwater only if
103.32the commissioner determines that the groundwater use is sustainable to supply the needs
103.33of future generations and the proposed use will not harm ecosystems, degrade water, or
104.1reduce water levels beyond the reach of public water supply and private domestic wells
104.2constructed according to Minnesota Rules, chapter 4725.

104.3    Sec. 74. Minnesota Statutes 2012, section 103I.205, subdivision 1, is amended to read:
104.4    Subdivision 1. Notification required. (a) Except as provided in paragraphs (d)
104.5and (e), a person may not construct a well until a notification of the proposed well on a
104.6form prescribed by the commissioner is filed with the commissioner with the filing fee in
104.7section 103I.208, and, when applicable, the person has met the requirements of paragraph
104.8(f). If after filing the well notification an attempt to construct a well is unsuccessful, a
104.9new notification is not required unless the information relating to the successful well
104.10has substantially changed.
104.11(b) The property owner, the property owner's agent, or the well contractor where a
104.12well is to be located must file the well notification with the commissioner.
104.13(c) The well notification under this subdivision preempts local permits and
104.14notifications, and counties or home rule charter or statutory cities may not require a
104.15permit or notification for wells unless the commissioner has delegated the permitting or
104.16notification authority under section 103I.111.
104.17(d) A person who is an individual that constructs a drive point well on property
104.18owned or leased by the individual for farming or agricultural purposes or as the individual's
104.19place of abode must notify the commissioner of the installation and location of the well.
104.20The person must complete the notification form prescribed by the commissioner and mail
104.21it to the commissioner by ten days after the well is completed. A fee may not be charged
104.22for the notification. A person who sells drive point wells at retail must provide buyers
104.23with notification forms and informational materials including requirements regarding
104.24wells, their location, construction, and disclosure. The commissioner must provide the
104.25notification forms and informational materials to the sellers.
104.26(e) A person may not construct a monitoring well until a permit is issued by the
104.27commissioner for the construction. If after obtaining a permit an attempt to construct a
104.28well is unsuccessful, a new permit is not required as long as the initial permit is modified
104.29to indicate the location of the successful well.
104.30(f) When the operation of a well will require an appropriation permit from the
104.31commissioner of natural resources, a person may not begin construction of the well until
104.32the person submits the following information to the commissioner of natural resources:
104.33(1) the location of the well;
104.34(2) the formation or aquifer that will serve as the water source;
105.1(3) the maximum daily, seasonal, and annual pumpage rates and volumes that will
105.2be requested in the appropriation permit; and
105.3(4) other information requested by the commissioner of natural resources that
105.4is necessary to conduct the preliminary assessment required under section 103G.287,
105.5subdivision 1, paragraph (c).
105.6The person may begin construction after receiving preliminary approval from the
105.7commissioner of natural resources.

105.8    Sec. 75. Minnesota Statutes 2012, section 114D.50, subdivision 4, is amended to read:
105.9    Subd. 4. Expenditures; accountability. (a) A project receiving funding from the
105.10clean water fund must meet or exceed the constitutional requirements to protect, enhance,
105.11and restore water quality in lakes, rivers, and streams and to protect groundwater and
105.12drinking water from degradation. Priority may be given to projects that meet more than
105.13one of these requirements. A project receiving funding from the clean water fund shall
105.14include measurable outcomes, as defined in section 3.303, subdivision 10, and a plan for
105.15measuring and evaluating the results. A project must be consistent with current science
105.16and incorporate state-of-the-art technology.
105.17(b) Money from the clean water fund shall be expended to balance the benefits
105.18across all regions and residents of the state.
105.19(c) A state agency or other recipient of a direct appropriation from the clean
105.20water fund must compile and submit all information for proposed and funded projects
105.21or programs, including the proposed measurable outcomes and all other items required
105.22under section 3.303, subdivision 10, to the Legislative Coordinating Commission as soon
105.23as practicable or by January 15 of the applicable fiscal year, whichever comes first. The
105.24Legislative Coordinating Commission must post submitted information on the Web site
105.25required under section 3.303, subdivision 10, as soon as it becomes available. Information
105.26classified as not public under section 13D.05, subdivision 3, paragraph (d), is not required
105.27to be placed on the Web site.
105.28(d) Grants funded by the clean water fund must be implemented according to section
105.2916B.98 and must account for all expenditures. Proposals must specify a process for any
105.30regranting envisioned. Priority for grant proposals must be given to proposals involving
105.31grants that will be competitively awarded.
105.32(e) Money from the clean water fund may only be spent on projects that benefit
105.33Minnesota waters.
105.34(f) When practicable, a direct recipient of an appropriation from the clean water fund
105.35shall prominently display on the recipient's Web site home page the legacy logo required
106.1under Laws 2009, chapter 172, article 5, section 10, as amended by Laws 2010, chapter
106.2361, article 3, section 5, accompanied by the phrase "Click here for more information."
106.3When a person clicks on the legacy logo image, the Web site must direct the person to
106.4a Web page that includes both the contact information that a person may use to obtain
106.5additional information, as well as a link to the Legislative Coordinating Commission Web
106.6site required under section 3.303, subdivision 10.
106.7(g) Future eligibility for money from the clean water fund is contingent upon a state
106.8agency or other recipient satisfying all applicable requirements in this section, as well as
106.9any additional requirements contained in applicable session law.
106.10(h) Money from the clean water fund may be used to leverage federal funds through
106.11execution of formal project partnership agreements with federal agencies consistent with
106.12respective federal agency partnership agreement requirements.

106.13    Sec. 76. [115.84] WASTEWATER LABORATORY CERTIFICATION.
106.14    Subdivision 1. Wastewater laboratory certification required. (a) Laboratories
106.15performing wastewater or water analytical laboratory work, the results of which are
106.16reported to the agency to determine compliance with a national pollutant discharge
106.17elimination system (NPDES) or state disposal system (SDS) permit condition or other
106.18regulatory document, must be certified according to this section.
106.19(b) This section does not apply to:
106.20(1) laboratories that are private and for-profit;
106.21(2) laboratories that perform drinking water analyses; or
106.22(3) laboratories that perform remediation program analyses, such as Superfund or
106.23petroleum analytical work.
106.24(c) Until adoption of rules under subdivision 2, laboratories required to be certified
106.25under this section that submit data to the agency must: (1) register with the agency by
106.26submitting registration information required by the agency; or (2) be certified or accredited
106.27by a recognized authority, such as the commissioner of health under sections 144.97 to
106.28144.99, for the analytical methods required by the agency.
106.29    Subd. 2. Rules. The agency may adopt rules to govern certification of laboratories
106.30according to this section. Notwithstanding section 16A.1283, the agency may adopt
106.31rules establishing fees.
106.32    Subd. 3. Fees. (a) Until the agency adopts a rule establishing fees for certification,
106.33the agency shall collect fees from laboratories registering with the agency, but not
106.34accredited by the commissioner of health under sections 144.97 to 144.99, in amounts
107.1necessary to cover the reasonable costs of the certification program, including reviewing
107.2applications, issuing certifications, and conducting audits and compliance assistance.
107.3(b) Fees under this section must be based on the number, type, and complexity of
107.4analytical methods that laboratories are certified to perform.
107.5(c) Revenue from fees charged by the agency for certification shall be credited to
107.6the environmental fund.
107.7    Subd. 4. Enforcement. (a) The commissioner may deny, suspend, or revoke
107.8wastewater laboratory certification for, but is not limited to, any of the following reasons:
107.9fraud, failure to follow applicable requirements, failure to respond to documented
107.10deficiencies or complete corrective actions necessary to address deficiencies, failure to pay
107.11certification fees, or other violations of federal or state law.
107.12(b) This section and the rules adopted under it may be enforced by any means
107.13provided in section 115.071.

107.14    Sec. 77. Minnesota Statutes 2012, section 115A.1320, subdivision 1, is amended to read:
107.15    Subdivision 1. Duties of the agency. (a) The agency shall administer sections
107.16115A.1310 to 115A.1330.
107.17    (b) The agency shall establish procedures for:
107.18    (1) receipt and maintenance of the registration statements and certifications filed
107.19with the agency under section 115A.1312; and
107.20    (2) making the statements and certifications easily available to manufacturers,
107.21retailers, and members of the public.
107.22    (c) The agency shall annually review the value of the following variables that are
107.23part of the formula used to calculate a manufacturer's annual registration fee under section
107.24115A.1314, subdivision 1 :
107.25    (1) the proportion of sales of video display devices sold to households that
107.26manufacturers are required to recycle;
107.27    (2) the estimated per-pound price of recycling covered electronic devices sold to
107.28households;
107.29    (3) the base registration fee; and
107.30    (4) the multiplier established for the weight of covered electronic devices collected
107.31in section 115A.1314, subdivision 1, paragraph (d). If the agency determines that any of
107.32these values must be changed in order to improve the efficiency or effectiveness of the
107.33activities regulated under sections 115A.1312 to 115A.1330, the agency shall submit
107.34recommended changes and the reasons for them to the chairs of the senate and house of
107.35representatives committees with jurisdiction over solid waste policy.
108.1    (d) By January 15 each year, beginning in 2008, the agency shall calculate estimated
108.2sales of video display devices sold to households by each manufacturer during the preceding
108.3program year, based on national sales data, and forward the estimates to the department.
108.4    (e) The agency shall provide a report to the governor and the legislature on the
108.5implementation of sections 115A.1310 to 115A.1330. For each program year, the report
108.6must discuss the total weight of covered electronic devices recycled and a summary
108.7of information in the reports submitted by manufacturers and recyclers under section
108.8115A.1316 . The report must also discuss the various collection programs used by
108.9manufacturers to collect covered electronic devices; information regarding covered
108.10electronic devices that are being collected by persons other than registered manufacturers,
108.11collectors, and recyclers; and information about covered electronic devices, if any, being
108.12disposed of in landfills in this state. The report must include a description of enforcement
108.13actions under sections 115A.1310 to 115A.1330. The agency may include in its report
108.14other information received by the agency regarding the implementation of sections
108.15115A.1312 to 115A.1330. The report must be done in conjunction with the report required
108.16under section 115D.10 115A.121.
108.17    (f) The agency shall promote public participation in the activities regulated under
108.18sections 115A.1312 to 115A.1330 through public education and outreach efforts.
108.19    (g) The agency shall enforce sections 115A.1310 to 115A.1330 in the manner
108.20provided by sections 115.071, subdivisions 1, 3, 4, 5, and 6; and 116.072, except for those
108.21provisions enforced by the department, as provided in subdivision 2. The agency may
108.22revoke a registration of a collector or recycler found to have violated sections 115A.1310
108.23to 115A.1330.
108.24    (h) The agency shall facilitate communication between counties, collection and
108.25recycling centers, and manufacturers to ensure that manufacturers are aware of video
108.26display devices available for recycling.
108.27    (i) The agency shall develop a form retailers must use to report information to
108.28manufacturers under section 115A.1318 and post it on the agency's Web site.
108.29    (j) The agency shall post on its Web site the contact information provided by each
108.30manufacturer under section 115A.1318, paragraph (e).

108.31    Sec. 78. [115A.1415] ARCHITECTURAL PAINT; PRODUCT STEWARDSHIP
108.32PROGRAM; STEWARDSHIP PLAN.
108.33    Subdivision 1. Definitions. For purposes of this section, the following terms have
108.34the meanings given:
109.1(1) "architectural paint" means interior and exterior architectural coatings sold in
109.2containers of five gallons or less. Architectural paint does not include industrial coatings,
109.3original equipment coatings, or specialty coatings;
109.4(2) "brand" means a name, symbol, word, or mark that identifies architectural paint,
109.5rather than its components, and attributes the paint to the owner or licensee of the brand as
109.6the producer;
109.7(3) "discarded paint" means architectural paint that is no longer used for its
109.8manufactured purpose;
109.9(4) "producer" means a person that:
109.10(i) has legal ownership of the brand, brand name, or cobrand of architectural paint
109.11sold in the state;
109.12(ii) imports architectural paint branded by a producer that meets subclause (i) when
109.13the producer has no physical presence in the United States;
109.14(iii) if subclauses (i) and (ii) do not apply, makes unbranded architectural paint
109.15that is sold in the state; or
109.16(iv) sells architectural paint at wholesale or retail, does not have legal ownership of
109.17the brand, and elects to fulfill the responsibilities of the producer for the architectural paint
109.18by certifying that election in writing to the commissioner;
109.19(5) "recycling" means the process of collecting and preparing recyclable materials and
109.20reusing the materials in their original form or using them in manufacturing processes that
109.21do not cause the destruction of recyclable materials in a manner that precludes further use;
109.22(6) "retailer" means any person who offers architectural paint for sale at retail in
109.23the state;
109.24(7) "reuse" means donating or selling collected architectural paint back into the
109.25market for its original intended use, when the architectural paint retains its original
109.26purpose and performance characteristics;
109.27(8) "sale" or "sell" means transfer of title of architectural paint for consideration,
109.28including a remote sale conducted through a sales outlet, catalog, Web site, or similar
109.29electronic means. Sale or sell includes a lease through which architectural paint is
109.30provided to a consumer by a producer, wholesaler, or retailer;
109.31(9) "stewardship assessment" means the amount added to the purchase price of
109.32architectural paint sold in the state that is necessary to cover the cost of collecting,
109.33transporting, and processing postconsumer architectural paint by the producer or
109.34stewardship organization pursuant to a product stewardship program;
110.1(10) "stewardship organization" means an organization appointed by one or more
110.2producers to act as an agent on behalf of the producer to design, submit, and administer a
110.3product stewardship program under this section; and
110.4(11) "stewardship plan" means a detailed plan describing the manner in which a
110.5product stewardship program under subdivision 2 will be implemented.
110.6    Subd. 2. Product stewardship program. For architectural paint sold in the state,
110.7producers must, individually or through a stewardship organization, implement and
110.8finance a statewide product stewardship program that manages the architectural paint by
110.9reducing the paint's waste generation, promoting its reuse and recycling, and providing for
110.10negotiation and execution of agreements to collect, transport, and process the architectural
110.11paint for end-of-life recycling and reuse.
110.12    Subd. 3. Requirement for sale. (a) On and after July 1, 2014, or three months after
110.13program plan approval, whichever is sooner, no producer, wholesaler, or retailer may sell
110.14or offer for sale in the state architectural paint unless the paint's producer participates in an
110.15approved stewardship plan, either individually or through a stewardship organization.
110.16(b) Each producer must operate a product stewardship program approved by the
110.17agency or enter into an agreement with a stewardship organization to operate, on the
110.18producer's behalf, a product stewardship program approved by the agency.
110.19    Subd. 4. Requirement to submit plan. (a) On or before March 1, 2014, and before
110.20offering architectural paint for sale in the state, a producer must submit a stewardship
110.21plan to the agency and receive approval of the plan or must submit documentation to the
110.22agency that demonstrates the producer has entered into an agreement with a stewardship
110.23organization to be an active participant in an approved product stewardship program as
110.24described in subdivision 2. A stewardship plan must include all elements required under
110.25subdivision 5.
110.26(b) An amendment to the plan, if determined necessary by the commissioner, must
110.27be submitted every five years.
110.28(c) It is the responsibility of the entities responsible for each stewardship plan to
110.29notify the agency within 30 days of any significant changes or modifications to the plan or
110.30its implementation. Within 30 days of the notification, a written plan revision must be
110.31submitted to the agency for review and approval.
110.32    Subd. 5. Stewardship plan content. A stewardship plan must contain:
110.33(1) certification that the product stewardship program will accept all discarded
110.34paint regardless of which producer produced the architectural paint and its individual
110.35components;
111.1(2) contact information for the individual and the entity submitting the plan, a list of
111.2all producers participating in the product stewardship program, and the brands covered by
111.3the product stewardship program;
111.4(3) a description of the methods by which the discarded paint will be collected in all
111.5areas in the state without relying on end-of-life fees, including an explanation of how the
111.6collection system will be convenient and adequate to serve the needs of small businesses
111.7and residents in both urban and rural areas on an ongoing basis and a discussion of how
111.8the existing household hazardous waste infrastructure will be considered when selecting
111.9collection sites;
111.10(4) a description of how the adequacy of the collection program will be monitored
111.11and maintained;
111.12(5) the names and locations of collectors, transporters, and recyclers that will
111.13manage discarded paint;
111.14(6) a description of how the discarded paint and the paint's components will be
111.15safely and securely transported, tracked, and handled from collection through final
111.16recycling and processing;
111.17(7) a description of the method that will be used to reuse, deconstruct, or recycle
111.18the discarded paint to ensure that the paint's components, to the extent feasible, are
111.19transformed or remanufactured into finished products for use;
111.20(8) a description of the promotion and outreach activities that will be used to
111.21encourage participation in the collection and recycling programs and how the activities'
111.22effectiveness will be evaluated and the program modified, if necessary;
111.23(9) the proposed stewardship assessment. The producer or stewardship organization
111.24shall propose a uniform stewardship assessment for any architectural paint sold in the
111.25state. The proposed stewardship assessment shall be reviewed by an independent auditor
111.26to ensure that the assessment does not exceed the costs of the product stewardship program
111.27and the independent auditor shall recommend an amount for the stewardship assessment.
111.28The agency must approve the stewardship assessment;
111.29(10) evidence of adequate insurance and financial assurance that may be required for
111.30collection, handling, and disposal operations;
111.31(11) five-year performance goals, including an estimate of the percentage of
111.32discarded paint that will be collected, reused, and recycled during each of the first five
111.33years of the stewardship plan. The performance goals must include a specific goal for the
111.34amount of discarded paint that will be collected and recycled and reused during each year
111.35of the plan. The performance goals must be based on:
111.36(i) the most recent collection data available for the state;
112.1(ii) the estimated amount of architectural paint disposed of annually;
112.2(iii) the weight of the architectural paint that is expected to be available for collection
112.3annually; and
112.4(iv) actual collection data from other existing stewardship programs.
112.5The stewardship plan must state the methodology used to determine these goals; and
112.6(12) a discussion of the status of end markets for collected architectural paint and
112.7what, if any, additional end markets are needed to improve the functioning of the program.
112.8    Subd. 6. Consultation required. Each stewardship organization or individual
112.9producer submitting a stewardship plan must consult with stakeholders including
112.10retailers, contractors, collectors, recyclers, local government, and customers during the
112.11development of the plan.
112.12    Subd. 7. Agency review and approval. (a) Within 90 days after receipt of a proposed
112.13stewardship plan, the agency shall determine whether the plan complies with subdivision
112.144. If the agency approves a plan, the agency shall notify the applicant of the plan approval
112.15in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of
112.16the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must
112.17submit a revised plan to the agency within 60 days after receiving notice of rejection.
112.18(b) Any proposed changes to a stewardship plan must be approved by the agency
112.19in writing.
112.20    Subd. 8. Plan availability. All draft and approved stewardship plans shall be
112.21placed on the agency's Web site for at least 30 days and made available at the agency's
112.22headquarters for public review and comment.
112.23    Subd. 9. Conduct authorized. A producer or stewardship organization that
112.24organizes collection, transport, and processing of architectural paint under this section
112.25is immune from liability for the conduct under state laws relating to antitrust, restraint
112.26of trade, unfair trade practices, and other regulation of trade or commerce only to the
112.27extent that the conduct is necessary to plan and implement the producer's or organization's
112.28chosen organized collection or recycling system.
112.29    Subd. 10. Responsibility of producers. (a) On and after the date of implementation
112.30of a product stewardship program according to this section, a producer of architectural
112.31paint must add the stewardship assessment, as established under subdivision 5, clause (9),
112.32to the cost of architectural paint sold to retailers and distributors in the state by the producer.
112.33(b) Producers of architectural paint or the stewardship organization shall provide
112.34consumers with educational materials regarding the stewardship assessment and product
112.35stewardship program. The materials must include, but are not limited to, information
112.36regarding available end-of-life management options for architectural paint offered through
113.1the product stewardship program and information that notifies consumers that a charge
113.2for the operation of the product stewardship program is included in the purchase price of
113.3architectural paint sold in the state.
113.4    Subd. 11. Responsibility of retailers. (a) On and after July 1, 2014, or three months
113.5after program plan approval, whichever is sooner, no architectural paint may be sold in the
113.6state unless the paint's producer is participating in an approved stewardship plan.
113.7(b) On and after the implementation date of a product stewardship program according
113.8to this section, each retailer or distributor, as applicable, must ensure that the full amount
113.9of the stewardship assessment added to the cost of architectural paint by producers under
113.10subdivision 10 is included in the purchase price of all architectural paint sold in the state.
113.11(c) Any retailer may participate, on a voluntary basis, as a designated collection
113.12point pursuant to a product stewardship program under this section and in accordance
113.13with applicable law.
113.14(d) No retailer or distributor shall be found to be in violation of this subdivision if,
113.15on the date the architectural paint was ordered from the producer or its agent, the producer
113.16was listed as compliant on the agency's Web site according to subdivision 14.
113.17    Subd. 12. Stewardship reports. Beginning October 1, 2015, producers of
113.18architectural paint sold in the state must individually or through a stewardship organization
113.19submit an annual report to the agency describing the product stewardship program. At a
113.20minimum, the report must contain:
113.21(1) a description of the methods used to collect, transport, and process architectural
113.22paint in all regions of the state;
113.23(2) the weight of all architectural paint collected in all regions of the state and a
113.24comparison to the performance goals and recycling rates established in the stewardship
113.25plan;
113.26(3) the amount of unwanted architectural paint collected in the state by method of
113.27disposition, including reuse, recycling, and other methods of processing;
113.28(4) samples of educational materials provided to consumers and an evaluation of the
113.29effectiveness of the materials and the methods used to disseminate the materials; and
113.30(5) an independent financial audit.
113.31    Subd. 13. Data classification. Trade secret and sales information, as defined under
113.32section 13.37, submitted to the agency under this section are private or nonpublic data
113.33under section 13.37.
113.34    Subd. 14. Agency responsibilities. The agency shall provide, on its Web site, a
113.35list of all compliant producers and brands participating in stewardship plans that the
114.1agency has approved and a list of all producers and brands the agency has identified as
114.2noncompliant with this section.
114.3    Subd. 15. Local government responsibilities. (a) A city, county, or other public
114.4agency may choose to participate voluntarily in a product stewardship program.
114.5(b) Cities, counties, and other public agencies are encouraged to work with producers
114.6and stewardship organizations to assist in meeting product stewardship program reuse and
114.7recycling obligations, by providing education and outreach or using other strategies.
114.8(c) A city, county, or other public agency that participates in a product stewardship
114.9program must report for the first year of the program to the agency using the reporting
114.10form provided by the agency on the cost savings as a result of participation and describe
114.11how the savings were used.
114.12    Subd. 16. Administrative fee. (a) The stewardship organization or individual
114.13producer submitting a stewardship plan shall pay an annual administrative fee to the
114.14commissioner. The agency may establish a variable fee based on relevant factors,
114.15including, but not limited to, the portion of architectural paint sold in the state by members
114.16of the organization compared to the total amount of architectural paint sold in the state by
114.17all organizations submitting a stewardship plan.
114.18    (b) Prior to July 1, 2014, and before July 1 annually thereafter, the agency shall
114.19identify the costs it incurs under this section. The agency shall set the fee at an amount
114.20that, when paid by every stewardship organization or individual producer that submits a
114.21stewardship plan, is adequate to reimburse the agency's full costs of administering this
114.22section. The total amount of annual fees collected under this subdivision must not exceed
114.23the amount necessary to reimburse costs incurred by the agency to administer this section.
114.24    (c) A stewardship organization or individual producer subject to this subdivision
114.25must pay the agency's administrative fee under paragraph (a) on or before July 1, 2014 and
114.26annually thereafter. Each year after the initial payment, the annual administrative fee may
114.27not exceed five percent of the aggregate stewardship assessment added to the cost of all
114.28architectural paint sold by producers in the state for the preceding calendar year.
114.29    (d) All fees received under this section shall be deposited to the state treasury and
114.30credited to a product stewardship account in the special revenue fund. For fiscal years
114.312014 and 2015, the amount collected under this section is annually appropriated to the
114.32agency to implement and enforce this section.

114.33    Sec. 79. [115A.142] REPORT TO LEGISLATURE AND GOVERNOR.
115.1As part of the report required under section 115A.121, the commissioner of the
115.2Pollution Control Agency shall provide a report to the governor and the legislature on
115.3the implementation of section 115A.1415.

115.4    Sec. 80. Minnesota Statutes 2012, section 115B.20, subdivision 6, is amended to read:
115.5    Subd. 6. Report to legislature. Each year By January 31 of each odd-numbered
115.6year, the commissioner of agriculture and the agency shall submit to the senate Finance
115.7Committee, the house of representatives Ways and Means Committee, the Environment
115.8and Natural Resources Committees of the senate and house of representatives, the Finance
115.9Division of the senate Committee on Environment and Natural Resources, and the house
115.10of representatives Committee on Environment and Natural Resources Finance, and the
115.11Environmental Quality Board a report detailing the activities for which money has been
115.12spent pursuant to this section during the previous fiscal year.
115.13EFFECTIVE DATE.This section is effective July 1, 2013.

115.14    Sec. 81. Minnesota Statutes 2012, section 115B.28, subdivision 1, is amended to read:
115.15    Subdivision 1. Duties. In addition to performing duties specified in sections
115.16115B.25 to 115B.37 or in other law, and subject to the limitations on disclosure contained
115.17in section 115B.35, the agency shall:
115.18(1) adopt rules, including rules governing practice and procedure before the agency,
115.19the form and procedure for applications for compensation, and procedures for claims
115.20investigations;
115.21(2) publicize the availability of compensation and application procedures on a
115.22statewide basis with special emphasis on geographical areas surrounding sites identified
115.23by the agency as having releases from a facility where a harmful substance was placed or
115.24came to be located prior to July 1, 1983;
115.25(3) collect, analyze, and make available to the public, in consultation with the
115.26Department of Health, the Pollution Control Agency, the University of Minnesota Medical
115.27and Public Health Schools, and the medical community, data regarding injuries relating to
115.28exposure to harmful substances; and
115.29(4) prepare and transmit by December 31 of each year to the governor and the
115.30legislature an annual legislative report required under section 115B.20, subdivision
115.316, to include (i) a summary of agency activity under clause (3); (ii) data determined
115.32by the agency from actual cases, including but not limited to number of cases, actual
115.33compensation received by each claimant, types of cases, and types of injuries compensated,
115.34as they relate to types of harmful substances as well as length of exposure, but excluding
116.1identification of the claimants; (iii) all administrative costs associated with the business of
116.2the agency; and (iv) agency recommendations for legislative changes, further study, or any
116.3other recommendation aimed at improving the system of compensation.

116.4    Sec. 82. Minnesota Statutes 2012, section 115B.421, is amended to read:
116.5115B.421 CLOSED LANDFILL INVESTMENT FUND.
116.6The closed landfill investment fund is established in the state treasury. The fund
116.7consists of money credited to the fund, and interest and other earnings on money in the
116.8fund. The commissioner of management and budget shall transfer an initial amount of
116.9$5,100,000 from the balance in the solid waste fund beginning in fiscal year 2000 and
116.10shall continue to transfer $5,100,000 for each following fiscal year, ceasing after 2003.
116.11 Beginning July 1, 2003, funds must be deposited as described in section 115B.445. The
116.12fund shall be managed to maximize long-term gain through the State Board of Investment.
116.13Money in the fund may be spent by the commissioner after fiscal year 2020 in accordance
116.14with sections 115B.39 to 115B.444.

116.15    Sec. 83. Minnesota Statutes 2012, section 115C.02, subdivision 4, is amended to read:
116.16    Subd. 4. Corrective action. "Corrective action" means an action taken to minimize,
116.17eliminate, or clean up a release to protect the public health and welfare or the environment.
116.18 Corrective action may include, environmental covenants pursuant to chapter 114E, an
116.19affidavit required under section 116.48, subdivision 6, or similar notice of a release
116.20recorded with real property records.

116.21    Sec. 84. Minnesota Statutes 2012, section 115C.08, subdivision 4, is amended to read:
116.22    Subd. 4. Expenditures. (a) Money in the fund may only be spent:
116.23(1) to administer the petroleum tank release cleanup program established in this
116.24chapter;
116.25(2) for agency administrative costs under sections 116.46 to 116.50, sections
116.26115C.03 to 115C.06, and costs of corrective action taken by the agency under section
116.27115C.03 , including investigations;
116.28(3) for costs of recovering expenses of corrective actions under section 115C.04;
116.29(4) for training, certification, and rulemaking under sections 116.46 to 116.50;
116.30(5) for agency administrative costs of enforcing rules governing the construction,
116.31installation, operation, and closure of aboveground and underground petroleum storage
116.32tanks;
117.1(6) for reimbursement of the environmental response, compensation, and compliance
117.2account under subdivision 5 and section 115B.26, subdivision 4;
117.3(7) for administrative and staff costs as set by the board to administer the petroleum
117.4tank release program established in this chapter;
117.5(8) for corrective action performance audits under section 115C.093;
117.6(9) for contamination cleanup grants, as provided in paragraph (c);
117.7(10) to assess and remove abandoned underground storage tanks under section
117.8115C.094 and, if a release is discovered, to pay for the specific consultant and contractor
117.9services costs necessary to complete the tank removal project, including, but not limited
117.10to, excavation soil sampling, groundwater sampling, soil disposal, and completion of
117.11an excavation report; and
117.12(11) for property acquisition by the agency when the agency has determined that
117.13purchasing a property where a release has occurred is the most appropriate corrective
117.14action. The to acquire interests in real or personal property, including easements,
117.15environmental covenants under chapter 114E, and leases, that the agency determines are
117.16necessary for corrective actions or to ensure the protectiveness of corrective actions. A
117.17donation of an interest in real property to the agency is not effective until the agency
117.18executes a certificate of acceptance. The state is not liable under this chapter solely as a
117.19result of acquiring an interest in real property under this clause. Agency approval of an
117.20environmental covenant under chapter 114E is sufficient evidence of acceptance of an
117.21interest in real property when the agency is expressly identified as a holder in the covenant.
117.22 Acquisition of all properties real property under this clause, except environmental
117.23covenants under chapter 114E, is subject to approval by the board.
117.24(b) Except as provided in paragraph (c), money in the fund is appropriated to the
117.25board to make reimbursements or payments under this section.
117.26(c) In fiscal years 2010 and 2011, $3,700,000 is annually appropriated from the fund
117.27to the commissioner of employment and economic development for contamination cleanup
117.28grants under section 116J.554. Beginning in fiscal year 2012 and each year thereafter,
117.29$6,200,000 is annually appropriated from the fund to the commissioner of employment
117.30and economic development for contamination cleanup grants under section 116J.554. Of
117.31this amount, the commissioner may spend up to $225,000 annually for administration
117.32of the contamination cleanup grant program. The appropriation does not cancel and is
117.33available until expended. The appropriation shall not be withdrawn from the fund nor the
117.34fund balance reduced until the funds are requested by the commissioner of employment
117.35and economic development. The commissioner shall schedule requests for withdrawals
118.1from the fund to minimize the necessity to impose the fee authorized by subdivision 2.
118.2Unless otherwise provided, the appropriation in this paragraph may be used for:
118.3(1) project costs at a qualifying site if a portion of the cleanup costs are attributable
118.4to petroleum contamination or new and used tar and tar-like substances, including but not
118.5limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist
118.6primarily of hydrocarbons and are found in natural deposits in the earth or are distillates,
118.7fractions, or residues from the processing of petroleum crude or petroleum products as
118.8defined in section 296A.01; and
118.9(2) the costs of performing contamination investigation if there is a reasonable basis
118.10to suspect the contamination is attributable to petroleum or new and used tar and tar-like
118.11substances, including but not limited to bitumen and asphalt, but excluding bituminous or
118.12asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits
118.13in the earth or are distillates, fractions, or residues from the processing of petroleum crude
118.14or petroleum products as defined in section 296A.01.

118.15    Sec. 85. Minnesota Statutes 2012, section 115C.08, is amended by adding a subdivision
118.16to read:
118.17    Subd. 6. Disposition of property acquired for corrective action. (a) If the
118.18commissioner determines that real or personal property acquired by the agency for a
118.19corrective action is no longer needed for corrective action purposes, the commissioner may:
118.20(1) request the commissioner of administration to dispose of the property according
118.21to sections 16B.281 to 16B.287, subject to conditions the commissioner of the Pollution
118.22Control Agency determines necessary to protect the public health and welfare and the
118.23environment or to comply with federal law;
118.24(2) transfer the property to another state agency, a political subdivision, or a special
118.25purpose district as provided in paragraph (b); or
118.26(3) if required by federal law, take actions and dispose of the property according
118.27to federal law.
118.28(b) If the commissioner determines that real or personal property acquired by
118.29the agency for a corrective action must be operated, maintained, or monitored after
118.30completion of other phases of the corrective action, the commissioner may transfer
118.31ownership of the property to another state agency, a political subdivision, or a special
118.32purpose district that agrees to accept the property. A state agency, political subdivision,
118.33or special purpose district may accept and implement terms and conditions of a transfer
118.34under this paragraph. The commissioner may set terms and conditions for the transfer
118.35that the commissioner considers reasonable and necessary to ensure proper operation,
119.1maintenance, and monitoring of corrective actions; protect the public health and welfare
119.2and the environment; and comply with applicable federal and state laws and regulations.
119.3The state agency, political subdivision, or special purpose district to which the property is
119.4transferred is not liable under this chapter solely as a result of acquiring the property or
119.5acting in accordance with the terms and conditions of transfer.
119.6(c) The commissioner of administration may charge the agency for actual staff and
119.7other costs related to disposal of the property under paragraph (a), clause (1). The net
119.8proceeds of a sale or other transfer of property under this subdivision by the commissioner
119.9or by the commissioner of administration shall be deposited in the petroleum tank fund or
119.10other appropriate fund. Any share of the proceeds that the agency is required by federal
119.11law or regulation to reimburse to the federal government is appropriated from the fund
119.12to the agency for the purpose. Section 16B.287, subdivision 1, does not apply to real
119.13property that is sold by the commissioner of administration and that was acquired under
119.14subdivision 4, clause (11).

119.15    Sec. 86. Minnesota Statutes 2012, section 115D.10, is amended to read:
119.16115D.10 TOXIC POLLUTION PREVENTION EVALUATION REPORT.
119.17The commissioner, in cooperation with the commission, shall report to
119.18the Environment and Natural Resources Committees of the senate and house of
119.19representatives, the Finance Division of the senate Committee on Environment and
119.20Natural Resources, and the house of representatives Committee on Environment and
119.21Natural Resources Finance on progress being made in achieving the objectives of sections
119.22115D.01 to 115D.12. The report must be submitted by February 1 of each even-numbered
119.23year done in conjunction with the report required under section 115A.121.

119.24    Sec. 87. Minnesota Statutes 2012, section 116.48, subdivision 6, is amended to read:
119.25    Subd. 6. Affidavit. (a) Before transferring ownership of property that the owner
119.26knows contains an underground or aboveground storage tank or contained an underground
119.27or aboveground storage tank that had a release for which no corrective action was taken or
119.28if required by the agency as a condition of a corrective action under chapter 115C, the
119.29owner shall record with the county recorder or registrar of titles of the county in which the
119.30property is located an affidavit containing:
119.31(1) a legal description of the property where the tank is located;
119.32(2) a description of the tank, of the location of the tank, and of any known release
119.33from the tank of a regulated substance to the full extent known or reasonably ascertainable;
120.1(3) a description of any restrictions currently in force on the use of the property
120.2resulting from any release; and
120.3(4) the name of the owner.
120.4(b) The county recorder shall record the affidavits in a manner that will insure
120.5their disclosure in the ordinary course of a title search of the subject property. Before
120.6transferring ownership of property that the owner knows contains an underground or
120.7aboveground storage tank, the owner shall deliver to the purchaser a copy of the affidavit
120.8and any additional information necessary to make the facts in the affidavit accurate as of
120.9the date of transfer of ownership.
120.10(c) Failure to record an affidavit as provided in this subdivision does not affect or
120.11prevent any transfer of ownership of the property.

120.12    Sec. 88. Minnesota Statutes 2012, section 116C.03, subdivision 2, is amended to read:
120.13    Subd. 2. Membership. The members of the board are the director of the Office of
120.14Strategic and Long-Range Planning commissioner of administration, the commissioner
120.15of commerce, the commissioner of the Pollution Control Agency, the commissioner
120.16of natural resources, the commissioner of agriculture, the commissioner of health,
120.17the commissioner of employment and economic development, the commissioner of
120.18transportation, the chair of the Board of Water and Soil Resources, and a representative of
120.19the governor's office designated by the governor. The governor shall appoint five members
120.20from the general public to the board, subject to the advice and consent of the senate.
120.21At least two of the five public members must have knowledge of and be conversant in
120.22water management issues in the state. Notwithstanding the provisions of section 15.06,
120.23subdivision 6
, members of the board may not delegate their powers and responsibilities as
120.24board members to any other person.

120.25    Sec. 89. Minnesota Statutes 2012, section 116C.03, subdivision 4, is amended to read:
120.26    Subd. 4. Support. Staff and consultant support for board activities shall be provided
120.27by the Office of Strategic and Long-Range Planning Pollution Control Agency. This
120.28support shall be provided based upon an annual budget and work program developed by
120.29the board and certified to the commissioner by the chair of the board. The board shall
120.30have the authority to request and require staff support from all other agencies of state
120.31government as needed for the execution of the responsibilities of the board.

120.32    Sec. 90. Minnesota Statutes 2012, section 116C.03, subdivision 5, is amended to read:
121.1    Subd. 5. Administration. The board shall contract with the Office of Strategic and
121.2Long-Range Planning Pollution Control Agency for administrative services necessary to
121.3the board's activities. The services shall include personnel, budget, payroll and contract
121.4administration.

121.5    Sec. 91. [116C.99] SILICA SAND MINING MODEL STANDARDS AND
121.6CRITERIA.
121.7    Subdivision 1. Definitions. The definitions in this subdivision apply to sections
121.8116C.99 to 116C.992.
121.9(a) "Local unit of government" means a county, statutory or home rule charter city,
121.10or town.
121.11(b) "Mining" means excavating silica sand by any process, including digging,
121.12excavating, drilling, blasting, tunneling, dredging, stripping, or by shaft.
121.13(c) "Processing" means washing, cleaning, screening, crushing, filtering, sorting,
121.14processing, stockpiling, and storing silica sand, either at the mining site or at any other site.
121.15(d) "Silica sand" means well-rounded, sand-sized grains of quartz (silicon dioxide),
121.16with very little impurities in terms of other minerals. Specifically, the silica sand for the
121.17purposes of this section is commercially valuable for use in the hydraulic fracturing of
121.18shale to obtain oil and natural gas. Silica sand does not include common rock, stone,
121.19aggregate, gravel, sand with a low quartz level, or silica compounds recovered as a
121.20by-product of metallic mining.
121.21(e) "Silica sand project" means the excavation and mining and processing of silica
121.22sand; the washing, cleaning, screening, crushing, filtering, drying, sorting, stockpiling,
121.23and storing of silica sand, either at the mining site or at any other site; the hauling and
121.24transporting of silica sand; or a facility for transporting silica sand to destinations by rail,
121.25barge, truck, or other means of transportation.
121.26(f) "Temporary storage" means the storage of stock piles of silica sand that have
121.27been transported and await further transport.
121.28(g) "Transporting" means hauling and transporting silica sand, by any carrier:
121.29(1) from the mining site to a processing or transfer site; or
121.30(2) from a processing or storage site to a rail, barge, or transfer site for transporting
121.31to destinations.
121.32    Subd. 2. Standards and criteria. (a) By October 1, 2013, the Environmental
121.33Quality Board, in consultation with local units of government, shall develop model
121.34standards and criteria for mining, processing, and transporting silica sand. These standards
121.35and criteria may be used by local units of government in developing local ordinances. The
122.1standards and criteria shall be different for different geographic areas of the state. The
122.2unique karst conditions and landforms of southeastern Minnesota shall be considered
122.3unique when compared with the flat scoured river terraces and uniform hydrology of the
122.4Minnesota Valley. The standards and criteria developed shall reflect those differences in
122.5varying regions of the state. The standards and criteria must include:
122.6(1) recommendations for setbacks or buffers for mining operation and processing,
122.7including:
122.8(i) any residence or residential zoning district boundary;
122.9(ii) any property line or right-of-way line of any existing or proposed street or
122.10highway;
122.11(iii) ordinary high water levels of public waters;
122.12(iv) bluffs;
122.13(v) designated trout streams, Class 2A water as designated in the rules of the
122.14Pollution Control Agency, or any perennially flowing tributary of a designated trout
122.15stream or Class 2A water;
122.16(vi) calcareous fens;
122.17(vii) wellhead protection areas as defined in section 103I.005;
122.18(viii) critical natural habitat acquired by the commissioner of natural resources
122.19under section 84.944; and
122.20(ix) a natural resource easement paid wholly or in part by public funds;
122.21(2) standards for hours of operation;
122.22(3) groundwater and surface water quality and quantity monitoring and mitigation
122.23plan requirements, including:
122.24(i) applicable groundwater and surface water appropriation permit requirements;
122.25(ii) well sealing requirements;
122.26(iii) annual submission of monitoring well data; and
122.27(iv) storm water runoff rate limits not to exceed two-, ten-, and 100-year storm events;
122.28(4) air monitoring and data submission requirements;
122.29(5) dust control requirements;
122.30(6) noise testing and mitigation plan requirements;
122.31(7) blast monitoring plan requirements;
122.32(8) lighting requirements;
122.33(9) inspection requirements;
122.34(10) containment requirements for silica sand in temporary storage to protect air
122.35and water quality;
122.36(11) containment requirements for chemicals used in processing;
123.1(12) financial assurance requirements;
123.2(13) road and bridge impacts and requirements; and
123.3(14) reclamation plan requirements as required under the rules adopted by the
123.4commissioner of natural resources.
123.5    Subd. 3. Silica sand technical assistance team. By October 1, 2013, the
123.6Environmental Quality Board shall assemble a silica sand technical assistance team
123.7to provide local units of government, at their request, with assistance with ordinance
123.8development, zoning, environmental review and permitting, monitoring, or other issues
123.9arising from silica sand mining and processing operations. The technical assistance team
123.10may be chosen from representatives of the following entities: the Department of Natural
123.11Resources, the Pollution Control Agency, the Board of Water and Soil Resources, the
123.12Department of Health, the Department of Transportation, the University of Minnesota,
123.13the Minnesota State Colleges and Universities, and federal agencies. A majority of the
123.14members must be from a state agency and all members must have expertise in one or more
123.15of the following areas: silica sand mining, hydrology, air quality, water quality, land use,
123.16or other areas related to silica sand mining.
123.17    Subd. 4. Consideration of technical assistance team recommendations. (a) When
123.18the technical assistance team, at the request of the local unit of government, assembles
123.19findings or makes a recommendation related to a proposed silica sand project for the
123.20protection of human health and the environment, a local government unit must consider
123.21the findings or recommendations of the technical assistance team in its approval or denial
123.22of a silica sand project. If the local government unit does not agree with the technical
123.23assistance team's findings and recommendations, the detailed reasons for the disagreement
123.24must be part of the local government unit's record of decision.
123.25(b) Silica sand project proposers must cooperate in providing local government unit
123.26staff, and members of the technical assistance team with information regarding the project.
123.27(c) When a local unit of government requests assistance from the silica sand
123.28technical assistance team for environmental review or permitting of a silica sand project
123.29the local unit of government may assess the project proposer for reasonable costs of the
123.30assistance and use the funds received to reimburse the entity providing that assistance.
123.31EFFECTIVE DATE.This section is effective the day following final enactment.

123.32    Sec. 92. [116C.991] ENVIRONMENTAL REVIEW; SILICA SAND PROJECTS.
123.33(a) Until two years after the effective date of this section, an environmental
123.34assessment worksheet must be prepared for any silica sand project that meets or exceeds
123.35the following thresholds, unless the project meets or exceeds the thresholds for an
124.1environmental impact statement under rules of the Environmental Quality Board and an
124.2environmental impact statement must be prepared:
124.3(1) excavates 20 or more acres of land to a mean depth of ten feet or more during its
124.4existence. The local government is the responsible governmental unit; or
124.5(2) is designed to store or is capable of storing more than 7,500 tons of silica sand or
124.6has an annual throughput of more than 200,000 tons of silica sand and is not required to
124.7receive a permit from the Pollution Control Agency. The Pollution Control Agency is the
124.8responsible governmental unit.
124.9(b) In addition to the contents required under statute and rule, an environmental
124.10assessment worksheet completed according to this section must include:
124.11(1) a hydrogeologic investigation assessing potential groundwater and surface water
124.12effects and geologic conditions that could create an increased risk of potentially significant
124.13effects on groundwater and surface water;
124.14(2) for a project with the potential to require a groundwater appropriation permit
124.15from the commissioner of natural resources, an assessment of the water resources
124.16available for appropriation;
124.17(3) an air quality impact assessment that includes an assessment of the potential
124.18effects from airborne particulates and dust;
124.19(4) a traffic impact analysis, including documentation of existing transportation
124.20systems, analysis of the potential effects of the project on transportation, and mitigation
124.21measures to eliminate or minimize adverse impacts;
124.22(5) an assessment of compatibility of the project with other existing uses; and
124.23(6) mitigation measures that could eliminate or minimize any adverse environmental
124.24effects for the project.
124.25EFFECTIVE DATE.This section is effective July 1, 2013, and no permit for
124.26a silica sand project subject to this section may be approved after that date unless the
124.27required environmental review has been completed.

124.28    Sec. 93. [116C.992] TECHNICAL ASSISTANCE, ORDINANCE, AND PERMIT
124.29LIBRARY.
124.30By October 1, 2013, the Environmental Quality Board, in consultation with local
124.31units of government, shall create and maintain a library on local government ordinances
124.32and local government permits that have been approved for regulation of silica sand
124.33projects for reference by local governments.

125.1    Sec. 94. Minnesota Statutes 2012, section 116D.04, is amended by adding a
125.2subdivision to read:
125.3    Subd. 16. Groundwater; environmental assessment worksheets. When an
125.4environmental assessment worksheet is required for a proposed action that has the
125.5potential to require a groundwater appropriation permit from the commissioner of natural
125.6resources, the board shall require that the environmental assessment worksheet include an
125.7assessment of the water resources available for appropriation.

125.8    Sec. 95. Minnesota Statutes 2012, section 282.04, subdivision 1, is amended to read:
125.9    Subdivision 1. Timber sales; land leases and uses. (a) The county auditor, with
125.10terms and conditions set by the county board, may sell timber upon any tract that may be
125.11approved by the natural resources commissioner. The sale of timber shall be made for
125.12cash at not less than the appraised value determined by the county board to the highest
125.13bidder after not less than one week's published notice in an official paper within the
125.14county. Any timber offered at the public sale and not sold may thereafter be sold at private
125.15sale by the county auditor at not less than the appraised value thereof, until the time as
125.16the county board may withdraw the timber from sale. The appraised value of the timber
125.17and the forestry practices to be followed in the cutting of said timber shall be approved
125.18by the commissioner of natural resources.
125.19    (b) Payment of the full sale price of all timber sold on tax-forfeited lands shall be
125.20made in cash at the time of the timber sale, except in the case of oral or sealed bid auction
125.21sales, the down payment shall be no less than 15 percent of the appraised value, and the
125.22balance shall be paid prior to entry. In the case of auction sales that are partitioned and
125.23sold as a single sale with predetermined cutting blocks, the down payment shall be no less
125.24than 15 percent of the appraised price of the entire timber sale which may be held until the
125.25satisfactory completion of the sale or applied in whole or in part to the final cutting block.
125.26The value of each separate block must be paid in full before any cutting may begin in that
125.27block. With the permission of the county contract administrator the purchaser may enter
125.28unpaid blocks and cut necessary timber incidental to developing logging roads as may
125.29be needed to log other blocks provided that no timber may be removed from an unpaid
125.30block until separately scaled and paid for. If payment is provided as specified in this
125.31paragraph as security under paragraph (a) and no cutting has taken place on the contract,
125.32the county auditor may credit the security provided, less any down payment required for
125.33an auction sale under this paragraph, to any other contract issued to the contract holder
125.34by the county under this chapter to which the contract holder requests in writing that it
126.1be credited, provided the request and transfer is made within the same calendar year as
126.2the security was received.
126.3    (c) The county board may sell any timber, including biomass, as appraised or scaled.
126.4Any parcels of land from which timber is to be sold by scale of cut products shall be so
126.5designated in the published notice of sale under paragraph (a), in which case the notice
126.6shall contain a description of the parcels, a statement of the estimated quantity of each
126.7species of timber, and the appraised price of each species of timber for 1,000 feet, per cord
126.8or per piece, as the case may be. In those cases any bids offered over and above the
126.9appraised prices shall be by percentage, the percent bid to be added to the appraised price
126.10of each of the different species of timber advertised on the land. The purchaser of timber
126.11from the parcels shall pay in cash at the time of sale at the rate bid for all of the timber
126.12shown in the notice of sale as estimated to be standing on the land, and in addition shall
126.13pay at the same rate for any additional amounts which the final scale shows to have been
126.14cut or was available for cutting on the land at the time of sale under the terms of the sale.
126.15Where the final scale of cut products shows that less timber was cut or was available
126.16for cutting under terms of the sale than was originally paid for, the excess payment
126.17shall be refunded from the forfeited tax sale fund upon the claim of the purchaser, to be
126.18audited and allowed by the county board as in case of other claims against the county. No
126.19timber, except hardwood pulpwood, may be removed from the parcels of land or other
126.20designated landings until scaled by a person or persons designated by the county board
126.21and approved by the commissioner of natural resources. Landings other than the parcel
126.22of land from which timber is cut may be designated for scaling by the county board by
126.23written agreement with the purchaser of the timber. The county board may, by written
126.24agreement with the purchaser and with a consumer designated by the purchaser when the
126.25timber is sold by the county auditor, and with the approval of the commissioner of natural
126.26resources, accept the consumer's scale of cut products delivered at the consumer's landing.
126.27No timber shall be removed until fully paid for in cash. Small amounts of timber not
126.28exceeding $3,000 in appraised valuation may be sold for not less than the full appraised
126.29value at private sale to individual persons without first publishing notice of sale or calling
126.30for bids, provided that in case of a sale involving a total appraised value of more than $200
126.31the sale shall be made subject to final settlement on the basis of a scale of cut products in
126.32the manner above provided and not more than two of the sales, directly or indirectly to any
126.33individual shall be in effect at one time.
126.34    (d) As directed by the county board, the county auditor may lease tax-forfeited land
126.35to individuals, corporations or organized subdivisions of the state at public or private sale,
126.36and at the prices and under the terms as the county board may prescribe, for use as cottage
127.1and camp sites and for agricultural purposes and for the purpose of taking and removing of
127.2hay, stumpage, sand, gravel, clay, rock, marl, and black dirt from the land, and for garden
127.3sites and other temporary uses provided that no leases shall be for a period to exceed ten
127.4years; provided, further that any leases involving a consideration of more than $12,000 per
127.5year, except to an organized subdivision of the state shall first be offered at public sale in
127.6the manner provided herein for sale of timber. Upon the sale of any leased land, it shall
127.7remain subject to the lease for not to exceed one year from the beginning of the term of the
127.8lease. Any rent paid by the lessee for the portion of the term cut off by the cancellation
127.9shall be refunded from the forfeited tax sale fund upon the claim of the lessee, to be
127.10audited and allowed by the county board as in case of other claims against the county.
127.11    (e) As directed by the county board, the county auditor may lease tax-forfeited land
127.12to individuals, corporations, or organized subdivisions of the state at public or private sale,
127.13at the prices and under the terms as the county board may prescribe, for the purpose
127.14of taking and removing for use for road construction and other purposes tax-forfeited
127.15stockpiled iron-bearing material. The county auditor must determine that the material is
127.16needed and suitable for use in the construction or maintenance of a road, tailings basin,
127.17settling basin, dike, dam, bank fill, or other works on public or private property, and
127.18that the use would be in the best interests of the public. No lease shall exceed ten years.
127.19The use of a stockpile for these purposes must first be approved by the commissioner of
127.20natural resources. The request shall be deemed approved unless the requesting county
127.21is notified to the contrary by the commissioner of natural resources within six months
127.22after receipt of a request for approval for use of a stockpile. Once use of a stockpile has
127.23been approved, the county may continue to lease it for these purposes until approval is
127.24withdrawn by the commissioner of natural resources.
127.25    (f) The county auditor, with the approval of the county board is authorized to grant
127.26permits, licenses, and leases to tax-forfeited lands for the depositing of stripping, lean ores,
127.27tailings, or waste products from mines or ore milling plants, or to use for facilities needed
127.28to recover iron-bearing oxides from tailings basins or stockpiles, or for a buffer area
127.29needed for a mining operation, upon the conditions and for the consideration and for the
127.30period of time, not exceeding 25 years, as the county board may determine. The permits,
127.31licenses, or leases are subject to approval by the commissioner of natural resources.
127.32    (g) Any person who removes any timber from tax-forfeited land before said timber
127.33has been scaled and fully paid for as provided in this subdivision is guilty of a misdemeanor.
127.34    (h) The county auditor may, with the approval of the county board, and without first
127.35offering at public sale, grant leases, for a term not exceeding 25 years, for the removal of
127.36peat and for the production or removal of farm-grown closed-loop biomass as defined in
128.1section 216B.2424, subdivision 1, or short-rotation woody crops from tax-forfeited lands
128.2upon the terms and conditions as the county board may prescribe. Any lease for the removal
128.3of peat, farm-grown closed-loop biomass, or short-rotation woody crops from tax-forfeited
128.4lands must first be reviewed and approved by the commissioner of natural resources if the
128.5lease covers 320 or more acres. No lease for the removal of peat, farm-grown closed-loop
128.6biomass, or short-rotation woody crops shall be made by the county auditor pursuant to this
128.7section without first holding a public hearing on the auditor's intention to lease. One printed
128.8notice in a legal newspaper in the county at least ten days before the hearing, and posted
128.9notice in the courthouse at least 20 days before the hearing shall be given of the hearing.
128.10    (i) Notwithstanding any provision of paragraph (c) to the contrary, the St. Louis
128.11County auditor may, at the discretion of the county board, sell timber to the party who
128.12bids the highest price for all the several kinds of timber, as provided for sales by the
128.13commissioner of natural resources under section 90.14. Bids offered over and above the
128.14appraised price need not be applied proportionately to the appraised price of each of
128.15the different species of timber.
128.16    (j) In lieu of any payment or deposit required in paragraph (b), as directed by the
128.17county board and under terms set by the county board, the county auditor may accept an
128.18irrevocable bank letter of credit in the amount equal to the amount otherwise determined in
128.19paragraph (b). If an irrevocable bank letter of credit is provided under this paragraph, at the
128.20written request of the purchaser, the county may periodically allow the bank letter of credit
128.21to be reduced by an amount proportionate to the value of timber that has been harvested
128.22and for which the county has received payment. The remaining amount of the bank letter
128.23of credit after a reduction under this paragraph must not be less than 20 percent of the value
128.24of the timber purchased. If an irrevocable bank letter of credit or cash deposit is provided
128.25for the down payment required in paragraph (b), and no cutting of timber has taken place
128.26on the contract for which a letter of credit has been provided, the county may allow the
128.27transfer of the letter of credit to any other contract issued to the contract holder by the
128.28county under this chapter to which the contract holder requests in writing that it be credited.

128.29    Sec. 96. [383B.761] DISCONTINUANCE OF HENNEPIN COUNTY SOIL AND
128.30WATER CONSERVATION DISTRICT; TRANSFER OF DUTIES.
128.31    Subdivision 1. Petition. Notwithstanding section 103C.225, the Hennepin County
128.32Board of Commissioners may petition the Minnesota Board of Water and Soil Resources
128.33to discontinue the Hennepin Soil and Water Conservation District and transfer the duties
128.34and authorities of the district to the Hennepin County Board of Commissioners. The
128.35Minnesota Board of Water and Soil Resources has 60 days from the receipt of the petition
129.1to conduct its review. The Minnesota Board of Water and Soil Resources shall make
129.2its determination regarding the petition no later than its first regular meeting following
129.3the 60-day review period.
129.4    Subd. 2. Discontinuance. The Minnesota Board of Water and Soil Resources shall
129.5review the petition submitted under subdivision 1 to determine whether progress toward
129.6the goals identified in section 103C.005 can be achieved by discontinuing the Hennepin
129.7Soil and Water Conservation District and transferring the duties and authorities of the
129.8district to the Hennepin County Board of Commissioners. If the Board of Water and Soil
129.9Resources determines that progress toward the goals identified in section 103C.005 can
129.10be achieved by the discontinuance of the district and the transfer of district duties and
129.11authorities to the Hennepin County Board of Commissioners, the Board of Water and Soil
129.12Resources shall order the discontinuance of the Hennepin Soil and Water Conservation
129.13District. The order shall become effective within 60 days from the date of the order. The
129.14Minnesota Board of Water and Soil Resources may discontinue the Hennepin Soil and
129.15Water Conservation District without a referendum.
129.16    Subd. 3. Transfer of duties and authorities. Upon discontinuance of the
129.17Hennepin Soil and Water Conservation District by the Minnesota Board of Water and Soil
129.18Resources, the Hennepin County Board of Commissioners has the duties and authorities
129.19of a soil and water conservation district. The Hennepin County Board of Commissioners
129.20may assign these duties and responsibilities to the Hennepin County Department of
129.21Environmental Services or other county departments as deemed appropriate by the county
129.22board. All contracts in effect on the date of the discontinuance of the district, to which
129.23the Hennepin Soil and Water Conservation District is a party, remain in force and effect
129.24for the period provided in the contracts. Hennepin County shall be substituted for the
129.25Hennepin Soil and Water Conservation District as party to the contracts and succeed
129.26to the district's rights and duties.
129.27    Subd. 4. Transfer of assets. The Hennepin Conservation District Board of
129.28Supervisors shall transfer the assets of the district to the Hennepin County Board of
129.29Commissioners no later than 60 days from the date of the order. The Hennepin County
129.30Board of Commissioners shall use the transferred assets for purposes of implementing the
129.31transferred duties and authorities.
129.32    Subd. 5. Grants. Upon discontinuance of the Hennepin Soil and Water
129.33Conservation District by the Minnesota Board of Water and Soil Resources, Hennepin
129.34County has the eligibility of a soil and water conservation district for state grant funds.
129.35    Subd. 6. Reestablishment. The Hennepin County Board of Commissioners may
129.36petition the Minnesota Board of Water and Soil Resources to reestablish the Hennepin
130.1Soil and Water Conservation District. Alternatively, the Minnesota Board of Water
130.2and Soil Resources under its authority in section 103C.201, and after giving notice
130.3of corrective actions and time to implement the corrective actions, may reestablish the
130.4Hennepin Soil and Water Conservation District if it determines the goals identified in
130.5section 103C.005 are not being achieved. The Minnesota Board of Water and Soil
130.6Resources may reestablish the Hennepin Soil and Water Conservation District under this
130.7subdivision without a referendum.
130.8EFFECTIVE DATE; LOCAL APPROVAL.This section is effective the day after
130.9the governing body of Hennepin County and its chief clerical officer timely complete their
130.10compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

130.11    Sec. 97. Minnesota Statutes 2012, section 473.846, is amended to read:
130.12473.846 REPORTS REPORT TO LEGISLATURE.
130.13The agency shall submit to the senate and house of representatives committees
130.14having jurisdiction over environment and natural resources separate reports a report
130.15 describing the activities for which money for landfill abatement has been spent under
130.16sections section 473.844 and 473.845. The report for section 473.844 expenditures shall be
130.17included in the report required by section 115A.411, and shall include recommendations
130.18on the future management and use of the metropolitan landfill abatement account. By
130.19December 31 of each year, the commissioner shall submit the report for section 473.845
130.20 on contingency action trust fund activities.

130.21    Sec. 98. Laws 2010, chapter 361, article 3, section 7, is amended to read:
130.22    Sec. 7. PARKS.
130.23The Minneapolis Park and Recreation Board may acquire all or part of the entire
130.24property known as the Scherer Brothers Lumber Yard for a metropolitan area regional
130.25park and may allocate any future appropriations to the board from the parks and trails
130.26fund to acquire the property. Notwithstanding Minnesota Rules, part 6115.0190, subpart
130.273 or 5, item E, or 6115.0191, subpart 8, item A, the Minneapolis Park and Recreation
130.28Board is authorized to recreate and restore Hall's Island or such similar island located at
130.29approximately river mile 855 on the Mississippi River, just north of the Plymouth Avenue
130.30bridge, at a project site in Section 15, Township 29 North, Range 24 West, Hennepin
130.31County, Minnesota, on or adjacent to the property known as the Scherer Brothers Lumber
130.32Yard. The commissioner of natural resources shall grant any authorizations, permits, or
130.33permissions necessary to effectuate the project, provided that the project is consistent with
131.1all other standards and guidelines in Minnesota Rules, chapter 6115. If the project is
131.2not constructed within six years of the effective date of this act, the authority provided
131.3in this section to reconstruct Hall's Island expires. The recreation and restoration shall
131.4be coordinated with future efforts to restore habitat along the Mississippi River. Once
131.5recreated and restored, Hall's Island shall remain in public ownership in perpetuity and
131.6shall be maintained as a natural habitat island for birds and other wildlife. Public access
131.7and recreational activities shall be limited to a walking trail to protect the island's wildlife
131.8and habitat.
131.9EFFECTIVE DATE.This section is effective the day after the Minneapolis Park
131.10and Recreation Board timely completes compliance with Minnesota Statutes, section
131.11645.021, subdivisions 2 and 3.

131.12    Sec. 99. NORTH MISSISSIPPI REGIONAL PARK.
131.13(a) The boundaries of the North Mississippi Regional Park are extended to include
131.14the approximately 20.82 acres of land adjacent to the existing park known as Webber Park
131.15and that part of Shingle Creek that flows through Webber Park and continues through
131.16North Mississippi Regional Park into the Mississippi River.
131.17(b) Funds appropriated for North Mississippi Regional Park may be expended to
131.18provide for visitor amenities, including construction of a natural filtration swimming
131.19pool and a building for park users.
131.20EFFECTIVE DATE.This section is effective the day after the governing body of
131.21the Minneapolis Park and Recreation Board and its chief clerical officer timely complete
131.22their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

131.23    Sec. 100. WASTEWATER TREATMENT SYSTEMS; BENEFICIAL USE.
131.24The Pollution Control Agency shall apply the following criteria to wastewater
131.25treatment system projects: at least 30 points shall be assigned if a project will result
131.26in an agency-approved beneficial use of treated wastewater that results in reducing or
131.27replacing the use of groundwater, surface water, or potable water, provided that the project
131.28component resulting in the beneficial use of wastewater accounts for at least 20 percent of
131.29the total eligible cost of the project. Projects receiving points for land discharge beneficial
131.30use shall not receive an additional 30 points.
131.31EFFECTIVE DATE.This section is effective August 1, 2013.

131.32    Sec. 101. PERMIT CANCELLATION.
132.1Upon written request submitted by a permit holder to the commissioner of natural
132.2resources on or before June 1, 2015, the commissioner shall cancel any provision in a
132.3timber sale permit sold prior to September 1, 2012, that requires the security payment for
132.4or removal of all or part of the balsam fir when the permit contains at least 50 cords of
132.5balsam fir. The remaining provisions of the permit remain in effect. The permit holder
132.6may be required to fell or pile the balsam fir to meet management objectives.

132.7    Sec. 102. GROUNDWATER SUSTAINABILITY RECOMMENDATIONS.
132.8The commissioner of natural resources shall develop recommendations on
132.9additional tools needed to fully implement the groundwater sustainability requirements
132.10of Minnesota Statutes, section 103G.287, subdivisions 3 and 5. The recommendations
132.11shall be submitted to the chairs of the environment and natural resources policy and
132.12finance committees by January 15, 2014, and shall include draft legislative language to
132.13implement the recommendations.

132.14    Sec. 103. RULEMAKING; POSSESSION AND TRANSPORTATION OF
132.15WILDLIFE.
132.16The commissioner of natural resources may use the good cause exemption under
132.17Minnesota Statutes, section 14.388, subdivision 1, clause (3), to adopt rules to conform
132.18with the changes to Minnesota Statutes 2012, section 97A.401, subdivision 3, contained in
132.19this article, and Minnesota Statutes, section 14.386, does not apply except as provided
132.20under Minnesota Statutes, section 14.388.

132.21    Sec. 104. RULEMAKING; DISPLAY OF PADDLE BOARD LICENSE
132.22NUMBERS.
132.23(a) The commissioner of natural resources shall amend Minnesota Rules, parts
132.246110.0200, 6110.0300, and 6110.0400, to exempt paddle boards from the requirement to
132.25display license certificates and license numbers, in the same manner as other nonmotorized
132.26watercraft such as canoes and kayaks.
132.27(b) The commissioner may use the good cause exemption under Minnesota Statutes,
132.28section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
132.29Statutes, section 14.386, does not apply except as provided under Minnesota Statutes,
132.30section 14.388.

132.31    Sec. 105. RULES; SILICA SAND.
133.1(a) The commissioner of the Pollution Control Agency shall adopt rules pertaining
133.2to the control of particulate emissions from silica sand projects. The rulemaking is exempt
133.3from Minnesota Statutes, section 14.125.
133.4(b) The commissioner of natural resources shall adopt rules pertaining to the
133.5reclamation of silica sand mines. The rulemaking is exempt from Minnesota Statutes,
133.6section 14.125.
133.7(c) By January 1, 2014, the Department of Health shall adopt an air quality
133.8health-based value for silica sand.
133.9(d) The Environmental Quality Board shall amend its rules for environmental
133.10review, adopted under Minnesota Statutes, chapter 116D, for silica sand mining and
133.11processing to take into account the increased activity in the state and concerns over the
133.12size of specific operations. The Environmental Quality Board shall consider whether
133.13the requirements of Minnesota Statutes, section 116C.991, should remain part of the
133.14environmental review requirements for silica sand and whether the requirements should
133.15be different for different geographic areas of the state. The rulemaking is exempt from
133.16Minnesota Statutes, section 14.125.
133.17EFFECTIVE DATE.This section is effective the day following final enactment.

133.18    Sec. 106. INTERIM ORDINANCE EXTENSION OR RENEWAL.
133.19Notwithstanding Minnesota Statutes, sections 394.34 and 462.355, subdivision
133.204, until March 1, 2015, a local unit of government may extend for one year an interim
133.21ordinance or renew an expired ordinance prohibiting new or expanded silica sand projects,
133.22as defined in Minnesota Statutes, section 116C.99, and extend the ordinance an additional
133.23year by resolution of the local unit of government.
133.24EFFECTIVE DATE.This section is effective retroactively from March 1, 2013.

133.25    Sec. 107. RULEMAKING; FUGITIVE EMISSIONS.
133.26(a) The commissioner of the Pollution Control Agency shall amend Minnesota
133.27Rules, part 7005.0100, subpart 35a, to read:
133.28""Potential emissions" or "potential to emit" means the maximum capacity while
133.29operating at the maximum hours of operation of an emissions unit, emission facility, or
133.30stationary source to emit a pollutant under its physical and operational design. Any physical
133.31or operational limitation on the capacity of the stationary source to emit a pollutant,
133.32including air pollution control equipment and restriction on hours of operation or on the
134.1type or amount of material combusted, stored, or processed, must be treated as part of its
134.2design if the limitation or the effect it would have on emissions is federally enforceable.
134.3Secondary emissions must not be counted in determining the potential to emit of
134.4an emissions unit, emission facility, or stationary source. Fugitive emissions shall not be
134.5counted when determining potential to emit, unless required under Minnesota Rules, part
134.67007.0200, subpart 2, item B, or applicable federal regulation."
134.7(b) The commissioner may use the good cause exemption under Minnesota Statutes,
134.8section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
134.9Statutes, section 14.386, does not apply, except as provided under Minnesota Statutes,
134.10section 14.388.

134.11    Sec. 108. REPEALER.
134.12(a) Minnesota Statutes 2012, sections 90.163; 90.173; 90.41, subdivision 2; and
134.13103G.265, subdivision 2a, and Minnesota Rules, parts 7021.0010, subparts 1, 2, 4, and
134.145; 7021.0020; 7021.0030; 7021.0040; 7021.0050, subpart 5; 9210.0300; 9210.0310;
134.159210.0320; 9210.0330; 9210.0340; 9210.0350; 9210.0360; 9210.0370; 9210.0380; and
134.169220.0530, subpart 6, are repealed.
134.17(b) Laws 2011, First Special Session chapter 2, article 4, section 30, is repealed.

134.18ARTICLE 5
134.19SANITARY DISTRICTS

134.20    Section 1. Minnesota Statutes 2012, section 275.066, is amended to read:
134.21275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
134.22    For the purposes of property taxation and property tax state aids, the term "special
134.23taxing districts" includes the following entities:
134.24    (1) watershed districts under chapter 103D;
134.25    (2) sanitary districts under sections 115.18 to 115.37 442A.01 to 442A.29;
134.26    (3) regional sanitary sewer districts under sections 115.61 to 115.67;
134.27    (4) regional public library districts under section 134.201;
134.28    (5) park districts under chapter 398;
134.29    (6) regional railroad authorities under chapter 398A;
134.30    (7) hospital districts under sections 447.31 to 447.38;
134.31    (8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
134.32    (9) Duluth Transit Authority under sections 458A.21 to 458A.37;
134.33    (10) regional development commissions under sections 462.381 to 462.398;
134.34    (11) housing and redevelopment authorities under sections 469.001 to 469.047;
135.1    (12) port authorities under sections 469.048 to 469.068;
135.2    (13) economic development authorities under sections 469.090 to 469.1081;
135.3    (14) Metropolitan Council under sections 473.123 to 473.549;
135.4    (15) Metropolitan Airports Commission under sections 473.601 to 473.680;
135.5    (16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
135.6    (17) Morrison County Rural Development Financing Authority under Laws 1982,
135.7chapter 437, section 1;
135.8    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
135.9    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211,
135.10sections 1 to 6;
135.11    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article
135.125, section 39;
135.13    (21) Middle Mississippi River Watershed Management Organization under sections
135.14103B.211 and 103B.241;
135.15    (22) emergency medical services special taxing districts under section 144F.01;
135.16    (23) a county levying under the authority of section 103B.241, 103B.245, or
135.17103B.251 ;
135.18    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
135.19under Laws 2003, First Special Session chapter 21, article 4, section 12;
135.20    (25) an airport authority created under section 360.0426; and
135.21    (26) any other political subdivision of the state of Minnesota, excluding counties,
135.22school districts, cities, and towns, that has the power to adopt and certify a property tax
135.23levy to the county auditor, as determined by the commissioner of revenue.

135.24    Sec. 2. [442A.01] DEFINITIONS.
135.25    Subdivision 1. Applicability. For the purposes of this chapter, the terms defined
135.26in this section have the meanings given.
135.27    Subd. 2. Chief administrative law judge. "Chief administrative law judge" means
135.28the chief administrative law judge of the Office of Administrative Hearings or the delegate
135.29of the chief administrative law judge under section 14.48.
135.30    Subd. 3. District. "District" means a sanitary district created under this chapter or
135.31under Minnesota Statutes 2012, sections 115.18 to 115.37.
135.32    Subd. 4. Municipality. "Municipality" means a city, however organized.
135.33    Subd. 5. Property owner. "Property owner" means the fee owner of land, or the
135.34beneficial owner of land whose interest is primarily one of possession and enjoyment.
136.1Property owner includes, but is not limited to, vendees under a contract for deed and
136.2mortgagors. Any reference to a percentage of property owners means in number.
136.3    Subd. 6. Related governing body. "Related governing body" means the governing
136.4body of a related governmental subdivision and, in the case of an organized town, means
136.5the town board.
136.6    Subd. 7. Related governmental subdivision. "Related governmental subdivision"
136.7means a municipality or organized town wherein there is a territorial unit of a district or, in
136.8the case of an unorganized area, the county.
136.9    Subd. 8. Territorial unit. "Territorial unit" means all that part of a district situated
136.10within a single municipality, within a single organized town outside of a municipality, or,
136.11in the case of an unorganized area, within a single county.

136.12    Sec. 3. [442A.015] APPLICABILITY.
136.13All new sanitary district formations proposed and all sanitary districts previously
136.14formed under Minnesota Statutes 2012, sections 115.18 to 115.37, must comply with this
136.15chapter, including annexations to, detachments from, and dissolutions of sanitary districts
136.16previously formed under Minnesota Statutes 2012, sections 115.18 to 115.37.

136.17    Sec. 4. [442A.02] SANITARY DISTRICTS; PROCEDURES AND AUTHORITY.
136.18    Subdivision 1. Duty of chief administrative law judge. The chief administrative
136.19law judge shall conduct proceedings, make determinations, and issue orders for the
136.20creation of a sanitary district formed under this chapter or the annexation, detachment,
136.21or dissolution of a sanitary district previously formed under Minnesota Statutes 2012,
136.22sections 115.18 to 115.37.
136.23    Subd. 2. Consolidation of proceedings. The chief administrative law judge may
136.24order the consolidation of separate proceedings in the interest of economy and expedience.
136.25    Subd. 3. Contracts, consultants. The chief administrative law judge may contract
136.26with regional, state, county, or local planning commissions and hire expert consultants to
136.27provide specialized information and assistance.
136.28    Subd. 4. Powers of conductor of proceedings. Any person conducting a
136.29proceeding under this chapter may administer oaths and affirmations; receive testimony
136.30of witnesses, and the production of papers, books, and documents; examine witnesses;
136.31and receive and report evidence. Upon the written request of a presiding administrative
136.32law judge or a party, the chief administrative law judge may issue a subpoena for the
136.33attendance of a witness or the production of books, papers, records, or other documents
137.1material to any proceeding under this chapter. The subpoena is enforceable through the
137.2district court in the district in which the subpoena is issued.
137.3    Subd. 5. Rulemaking authority. The chief administrative law judge may adopt
137.4rules that are reasonably necessary to carry out the duties and powers imposed upon the
137.5chief administrative law judge under this chapter. The chief administrative law judge may
137.6initially adopt rules according to section 14.386. Notwithstanding section 16A.1283, the
137.7chief administrative law judge may adopt rules establishing fees.
137.8    Subd. 6. Schedule of filing fees. The chief administrative law judge may prescribe
137.9by rule a schedule of filing fees for any petitions filed under this chapter.
137.10    Subd. 7. Request for hearing transcripts; costs. Any party may request the chief
137.11administrative law judge to cause a transcript of the hearing to be made. Any party
137.12requesting a copy of the transcript is responsible for its costs.
137.13    Subd. 8. Compelled meetings; report. (a) In any proceeding under this chapter,
137.14the chief administrative law judge or conductor of the proceeding may at any time in the
137.15process require representatives from any petitioner, property owner, or involved city, town,
137.16county, political subdivision, or other governmental entity to meet together to discuss
137.17resolution of issues raised by the petition or order that confers jurisdiction on the chief
137.18administrative law judge and other issues of mutual concern. The chief administrative
137.19law judge or conductor of the proceeding may determine which entities are required
137.20to participate in these discussions. The chief administrative law judge or conductor of
137.21the proceeding may require that the parties meet at least three times during a 60-day
137.22period. The parties shall designate a person to report to the chief administrative law
137.23judge or conductor of the proceeding on the results of the meetings immediately after the
137.24last meeting. The parties may be granted additional time at the discretion of the chief
137.25administrative law judge or conductor of the proceedings.
137.26(b) Any proposed resolution or settlement of contested issues that results in a
137.27sanitary district formation, annexation, detachment, or dissolution; places conditions on
137.28any future sanitary district formation, annexation, detachment, or dissolution; or results in
137.29the withdrawal of an objection to a pending proceeding or the withdrawal of a pending
137.30proceeding must be filed with the chief administrative law judge and is subject to the
137.31applicable procedures and statutory criteria of this chapter.
137.32    Subd. 9. Permanent official record. The chief administrative law judge shall
137.33provide information about sanitary district creations, annexations, detachments, and
137.34dissolutions to the Minnesota Pollution Control Agency. The Minnesota Pollution Control
137.35Agency is responsible for maintaining the official record, including all documentation
137.36related to the processes.
138.1    Subd. 10. Shared program costs and fee revenue. The chief administrative
138.2law judge and the Minnesota Pollution Control Agency shall agree on an amount to be
138.3transferred from the Minnesota Pollution Control Agency to the chief administrative law
138.4judge to pay for administration of this chapter, including publication and notification costs.
138.5Sanitary district fees collected by the chief administrative law judge shall be deposited in
138.6the environmental fund.
138.7EFFECTIVE DATE.Subdivision 5 is effective the day following final enactment.

138.8    Sec. 5. [442A.03] FILING OF MAPS IN SANITARY DISTRICT PROCEEDINGS.
138.9Any party initiating a sanitary district proceeding that includes platted land shall file
138.10with the chief administrative law judge maps which are necessary to support and identify
138.11the land description. The maps shall include copies of plats.

138.12    Sec. 6. [442A.04] SANITARY DISTRICT CREATION.
138.13    Subdivision 1. Sanitary district creation. (a) A sanitary district may be created
138.14under this chapter for any territory embracing an area or a group of two or more adjacent
138.15areas, whether contiguous or separate, but not situated entirely within the limits of a
138.16single municipality. The proposed sanitary district must promote the public health and
138.17welfare by providing an adequate and efficient system and means of collecting, conveying,
138.18pumping, treating, and disposing of domestic sewage and garbage and industrial wastes
138.19within the district. When the chief administrative law judge or the Minnesota Pollution
138.20Control Agency finds that there is need throughout the territory for the accomplishment
138.21of these purposes; that these purposes can be effectively accomplished on an equitable
138.22basis by a district if created; and that the creation and maintenance of a district will be
138.23administratively feasible and in furtherance of the public health, safety, and welfare, the
138.24chief administrative law judge shall make an order creating the sanitary district. A sanitary
138.25district is administratively feasible under this section if the district has the financial and
138.26managerial resources needed to deliver adequate and efficient sanitary sewer services
138.27within the proposed district.
138.28(b) Notwithstanding paragraph (a), no district shall be created within 25 miles of the
138.29boundary of any city of the first class without the approval of the governing body thereof
138.30and the approval of the governing body of each and every municipality in the proposed
138.31district by resolution filed with the chief administrative law judge.
138.32(c) If the chief administrative law judge and the Minnesota Pollution Control Agency
138.33disagree on the need to create a sanitary district, they must determine whether not allowing
138.34the sanitary district formation will have a detrimental effect on the environment. If it is
139.1determined that the sanitary district formation will prevent environmental harm, the sanitary
139.2district creation or connection to an existing wastewater treatment system must occur.
139.3    Subd. 2. Proceeding to create sanitary district. (a) A proceeding for the creation
139.4of a district may be initiated by a petition to the chief administrative law judge containing
139.5the following:
139.6(1) a request for creation of the proposed district;
139.7(2) the name proposed for the district, to include the words "sanitary district";
139.8(3) a legal description of the territory of the proposed district, including justification
139.9for inclusion or exclusion for all parcels;
139.10(4) addresses of every property owner within the proposed district boundaries as
139.11provided by the county auditor, with certification from the county auditor; two sets of
139.12address labels for said owners; and a list of e-mail addresses for said owners, if available;
139.13(5) a statement showing the existence in the territory of the conditions requisite for
139.14creation of a district as prescribed in subdivision 1;
139.15(6) a statement of the territorial units represented by and the qualifications of the
139.16respective signers; and
139.17(7) the post office address of each signer, given under the signer's signature.
139.18A petition may consist of separate writings of like effect, each signed by one or more
139.19qualified persons, and all such writings, when filed, shall be considered together as a
139.20single petition.
139.21(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
139.22proposed creation of the district. At the meeting, information must be provided, including
139.23a description of the district's proposed structure, bylaws, territory, ordinances, budget, and
139.24charges and a description of the territory of the proposed district, including justification
139.25for inclusion or exclusion for all parcels. Notice of the meeting must be published for two
139.26successive weeks in a qualified newspaper, as defined under chapter 331A, published
139.27within the territory of the proposed district or, if there is no qualified newspaper published
139.28within the territory, in a qualified newspaper of general circulation in the territory, and
139.29must be posted for two weeks in each territorial unit of the proposed district and on the
139.30Web site of the proposed district, if one exists. Notice of the meeting must be mailed or
139.31e-mailed at least three weeks prior to the meeting to all property tax billing addresses for
139.32all parcels included in the proposed district. The following must be submitted to the chief
139.33administrative law judge with the petition:
139.34(1) a record of the meeting, including copies of all information provided at the
139.35meeting;
140.1(2) a copy of the mailing list provided by the county auditor and used to notify
140.2property owners of the meeting;
140.3(3) a copy of the e-mail list used to notify property owners of the meeting;
140.4(4) the printer's affidavit of publication of public meeting notice;
140.5(5) an affidavit of posting the public meeting notice with information on dates and
140.6locations of posting; and
140.7(6) the minutes or other record of the public meeting documenting that the following
140.8topics were discussed: printer's affidavit of publication of each resolution, with a copy
140.9of the resolution from the newspaper attached; and the affidavit of resolution posting
140.10on the town or proposed district Web site.
140.11(c) Every petition must be signed as follows:
140.12(1) for each municipality wherein there is a territorial unit of the proposed district,
140.13by an authorized officer pursuant to a resolution of the municipal governing body;
140.14(2) for each organized town wherein there is a territorial unit of the proposed district,
140.15by an authorized officer pursuant to a resolution of the town board;
140.16(3) for each county wherein there is a territorial unit of the proposed district consisting
140.17of an unorganized area, by an authorized officer pursuant to a resolution of the county
140.18board or by at least 20 percent of the voters residing and owning land within the unit.
140.19(d) Each resolution must be published in the official newspaper of the governing
140.20body adopting it and becomes effective 40 days after publication, unless within said
140.21period there shall be filed with the governing body a petition signed by qualified electors
140.22of a territorial unit of the proposed district, equal in number to five percent of the number
140.23of electors voting at the last preceding election of the governing body, requesting a
140.24referendum on the resolution, in which case the resolution may not become effective until
140.25approved by a majority of the qualified electors voting at a regular election or special
140.26election that the governing body may call. The notice of an election and the ballot to be
140.27used must contain the text of the resolution followed by the question: "Shall the above
140.28resolution be approved?"
140.29(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
140.30the signer's landowner status as shown by the county auditor's tax assessment records,
140.31certified by the auditor, shall be attached to or endorsed upon the petition.
140.32(f) At any time before publication of the public notice required in subdivision 3,
140.33additional signatures may be added to the petition or amendments of the petition may
140.34be made to correct or remedy any error or defect in signature or otherwise except a
140.35material error or defect in the description of the territory of the proposed district. If the
140.36qualifications of any signer of a petition are challenged, the chief administrative law judge
141.1shall determine the challenge forthwith on the allegations of the petition, the county
141.2auditor's certificate of land ownership, and such other evidence as may be received.
141.3    Subd. 3. Notice of intent to create sanitary district. (a) Upon receipt of a petition
141.4and the record of the public meeting required under subdivision 2, the chief administrative
141.5law judge shall publish a notice of intent to create the proposed sanitary district in the State
141.6Register and mail or e-mail information of that publication to each property owner in the
141.7affected territory at the owner's address as given by the county auditor. The information
141.8must state the date that the notice will appear in the State Register and give the Web site
141.9location for the State Register. The notice must:
141.10(1) describe the petition for creation of the district;
141.11(2) describe the territory affected by the petition;
141.12(3) allow 30 days for submission of written comments on the petition;
141.13(4) state that a person who objects to the petition may submit a written request for
141.14hearing to the chief administrative law judge within 30 days of the publication of the
141.15notice in the State Register; and
141.16(5) state that if a timely request for hearing is not received, the chief administrative
141.17law judge may make a decision on the petition.
141.18(b) If 50 or more individual timely requests for hearing are received, the chief
141.19administrative law judge must hold a hearing on the petition according to the contested
141.20case provisions of chapter 14. The sanitary district proposers are responsible for paying all
141.21costs involved in publicizing and holding a hearing on the petition.
141.22    Subd. 4. Hearing time, place. If a hearing is required pursuant to subdivision 3, the
141.23chief administrative law judge shall designate a time and place for a hearing according
141.24to section 442A.13.
141.25    Subd. 5. Relevant factors. (a) In arriving at a decision, the chief administrative law
141.26judge shall consider the following factors:
141.27(1) administrative feasibility under subdivision 1, paragraph (a);
141.28(2) public health, safety, and welfare impacts;
141.29(3) alternatives for managing the public health impacts;
141.30(4) equities of the petition proposal;
141.31(5) contours of the petition proposal; and
141.32(6) public notification of and interaction on the petition proposal.
141.33(b) Based on the factors in paragraph (a), the chief administrative law judge may
141.34order the sanitary district creation on finding that:
141.35(1) the proposed district is administratively feasible;
142.1(2) the proposed district provides a long-term, equitable solution to pollution
142.2problems affecting public health, safety, and welfare;
142.3(3) property owners within the proposed district were provided notice of the
142.4proposed district and opportunity to comment on the petition proposal; and
142.5(4) the petition complied with the requirements of all applicable statutes and rules
142.6pertaining to sanitary district creation.
142.7(c) The chief administrative law judge may alter the boundaries of the proposed
142.8sanitary district by increasing or decreasing the area to be included or may exclude
142.9property that may be better served by another unit of government. The chief administrative
142.10law judge may also alter the boundaries of the proposed district so as to follow visible,
142.11clearly recognizable physical features for municipal boundaries.
142.12(d) The chief administrative law judge may deny sanitary district creation if the area,
142.13or a part thereof, would be better served by an alternative method.
142.14(e) In all cases, the chief administrative law judge shall set forth the factors that are
142.15the basis for the decision.
142.16    Subd. 6. Findings; order. After the public notice period or the public hearing, if
142.17required under subdivision 3, and based on the petition, any public comments received,
142.18and, if a hearing was held, the hearing record, the chief administrative law judge shall
142.19make findings of fact and conclusions determining whether the conditions requisite for the
142.20creation of a district exist in the territory described in the petition. If the chief administrative
142.21law judge finds that the conditions exist, the judge may make an order creating a district
142.22for the territory described in that petition under the name proposed in the petition or such
142.23other name, including the words "sanitary district," as the judge deems appropriate.
142.24    Subd. 7. Denial of petition. If the chief administrative law judge, after conclusion
142.25of the public notice period or holding a hearing, if required, determines that the creation of
142.26a district in the territory described in the petition is not warranted, the judge shall make
142.27an order denying the petition. The chief administrative law judge shall give notice of the
142.28denial by mail or e-mail to each signer of the petition. No petition for the creation of a
142.29district consisting of the same territory shall be entertained within a year after the date of
142.30an order under this subdivision. Nothing in this subdivision precludes action on a petition
142.31for the creation of a district embracing part of the territory with or without other territory.
142.32    Subd. 8. Notice of order creating sanitary district. The chief administrative law
142.33judge shall publish a notice in the State Register of the final order creating a sanitary
142.34district, referring to the date of the order and describing the territory of the district, and
142.35shall mail or e-mail information of the publication to each property owner in the affected
142.36territory at the owner's address as given by the county auditor. The information must state
143.1the date that the notice will appear in the State Register and give the Web site location
143.2for the State Register. The notice must:
143.3(1) describe the petition for creation of the district;
143.4(2) describe the territory affected by the petition; and
143.5(3) state that a certified copy of the order shall be delivered to the secretary of state
143.6for filing ten days after public notice of the order in the State Register.
143.7    Subd. 9. Filing. Ten days after public notice of the order in the State Register, the
143.8chief administrative law judge shall deliver a certified copy of the order to the secretary
143.9of state for filing. Thereupon, the creation of the district is deemed complete, and it
143.10shall be conclusively presumed that all requirements of law relating thereto have been
143.11complied with. The chief administrative law judge shall also transmit a certified copy of
143.12the order for filing to the county auditor of each county and the clerk or recorder of each
143.13municipality and organized town wherein any part of the territory of the district is situated
143.14and to the secretary of the district board when elected.

143.15    Sec. 7. [442A.05] SANITARY DISTRICT ANNEXATION.
143.16    Subdivision 1. Annexation. (a) A sanitary district annexation may occur under
143.17this chapter for any area adjacent to an existing district upon a petition to the chief
143.18administrative law judge stating the grounds therefor as provided in this section.
143.19(b) The proposed annexation area must embrace an area or a group of two or more
143.20adjacent areas, whether contiguous or separate, but not situated entirely within the limits
143.21of a single municipality. The proposed annexation must promote public health and
143.22welfare by providing an adequate and efficient system and means of collecting, conveying,
143.23pumping, treating, and disposing of domestic sewage and garbage and industrial wastes
143.24within the district. When the chief administrative law judge or the Minnesota Pollution
143.25Control Agency finds that there is need throughout the territory for the accomplishment of
143.26these purposes, that these purposes can be effectively accomplished on an equitable basis
143.27by annexation to a district, and that the creation and maintenance of such annexation will
143.28be administratively feasible and in furtherance of the public health, safety, and welfare,
143.29the chief administrative law judge shall make an order for sanitary district annexation. An
143.30annexation is administratively feasible under this section if the district has the financial
143.31and managerial resources needed to deliver adequate and efficient sanitary sewer services
143.32within the proposed annexation.
143.33(c) Notwithstanding paragraph (b), no annexation to a district shall be approved
143.34within 25 miles of the boundary of any city of the first class without the approval
143.35of the governing body thereof and the approval of the governing body of each and
144.1every municipality in the proposed annexation area by resolution filed with the chief
144.2administrative law judge.
144.3(d) If the chief administrative law judge and the Minnesota Pollution Control Agency
144.4disagree on the need for a sanitary district annexation, they must determine whether not
144.5allowing the sanitary district annexation will have a detrimental effect on the environment.
144.6If it is determined that the sanitary district annexation will prevent environmental harm,
144.7the sanitary district annexation or connection to an existing wastewater treatment system
144.8must occur.
144.9    Subd. 2. Proceeding for annexation. (a) A proceeding for sanitary district
144.10annexation may be initiated by a petition to the chief administrative law judge containing
144.11the following:
144.12(1) a request for proposed annexation to a sanitary district;
144.13(2) a legal description of the territory of the proposed annexation, including
144.14justification for inclusion or exclusion for all parcels;
144.15(3) addresses of every property owner within the existing sanitary district and
144.16proposed annexation area boundaries as provided by the county auditor, with certification
144.17from the county auditor; two sets of address labels for said owners; and a list of e-mail
144.18addresses for said owners, if available;
144.19(4) a statement showing the existence in such territory of the conditions requisite
144.20for annexation to a district as prescribed in subdivision 1;
144.21(5) a statement of the territorial units represented by and qualifications of the
144.22respective signers; and
144.23(6) the post office address of each signer, given under the signer's signature.
144.24A petition may consist of separate writings of like effect, each signed by one or more
144.25qualified persons, and all such writings, when filed, shall be considered together as a
144.26single petition.
144.27(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
144.28proposed annexation to a sanitary district. At the meeting, information must be provided,
144.29including a description of the existing sanitary district's structure, bylaws, territory,
144.30ordinances, budget, and charges; a description of the existing sanitary district's territory;
144.31and a description of the territory of the proposed annexation area, including justification
144.32for inclusion or exclusion for all parcels for the annexation area. Notice of the meeting
144.33must be published for two successive weeks in a qualified newspaper, as defined under
144.34chapter 331A, published within the territories of the existing sanitary district and proposed
144.35annexation area or, if there is no qualified newspaper published within those territories, in
144.36a qualified newspaper of general circulation in the territories, and must be posted for two
145.1weeks in each territorial unit of the existing sanitary district and proposed annexation area
145.2and on the Web site of the existing sanitary district, if one exists. Notice of the meeting
145.3must be mailed or e-mailed at least three weeks prior to the meeting to all property tax
145.4billing addresses for all parcels included in the existing sanitary district and proposed
145.5annexation area. The following must be submitted to the chief administrative law judge
145.6with the petition:
145.7(1) a record of the meeting, including copies of all information provided at the
145.8meeting;
145.9(2) a copy of the mailing list provided by the county auditor and used to notify
145.10property owners of the meeting;
145.11(3) a copy of the e-mail list used to notify property owners of the meeting;
145.12(4) the printer's affidavit of publication of the public meeting notice;
145.13(5) an affidavit of posting the public meeting notice with information on dates and
145.14locations of posting; and
145.15(6) the minutes or other record of the public meeting documenting that the following
145.16topics were discussed: printer's affidavit of publication of each resolution, with copy
145.17of resolution from newspaper attached; and affidavit of resolution posting on town or
145.18existing sanitary district Web site.
145.19(c) Every petition must be signed as follows:
145.20(1) by an authorized officer of the existing sanitary district pursuant to a resolution
145.21of the board;
145.22(2) for each municipality wherein there is a territorial unit of the proposed annexation
145.23area, by an authorized officer pursuant to a resolution of the municipal governing body;
145.24(3) for each organized town wherein there is a territorial unit of the proposed
145.25annexation area, by an authorized officer pursuant to a resolution of the town board; and
145.26(4) for each county wherein there is a territorial unit of the proposed annexation area
145.27consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
145.28county board or by at least 20 percent of the voters residing and owning land within the unit.
145.29(d) Each resolution must be published in the official newspaper of the governing
145.30body adopting it and becomes effective 40 days after publication, unless within said
145.31period there shall be filed with the governing body a petition signed by qualified electors
145.32of a territorial unit of the proposed annexation area, equal in number to five percent of the
145.33number of electors voting at the last preceding election of the governing body, requesting
145.34a referendum on the resolution, in which case the resolution may not become effective
145.35until approved by a majority of the qualified electors voting at a regular election or special
145.36election that the governing body may call. The notice of an election and the ballot to be
146.1used must contain the text of the resolution followed by the question: "Shall the above
146.2resolution be approved?"
146.3(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
146.4the signer's landowner status as shown by the county auditor's tax assessment records,
146.5certified by the auditor, shall be attached to or endorsed upon the petition.
146.6(f) At any time before publication of the public notice required in subdivision 4,
146.7additional signatures may be added to the petition or amendments of the petition may be
146.8made to correct or remedy any error or defect in signature or otherwise except a material
146.9error or defect in the description of the territory of the proposed annexation area. If the
146.10qualifications of any signer of a petition are challenged, the chief administrative law judge
146.11shall determine the challenge forthwith on the allegations of the petition, the county
146.12auditor's certificate of land ownership, and such other evidence as may be received.
146.13    Subd. 3. Joint petition. Different areas may be annexed to a district in a single
146.14proceeding upon a joint petition therefor and upon compliance with the provisions of
146.15subdivisions 1 and 2 with respect to the area affected so far as applicable.
146.16    Subd. 4. Notice of intent for sanitary district annexation. (a) Upon receipt
146.17of a petition and the record of public meeting required under subdivision 2, the chief
146.18administrative law judge shall publish a notice of intent for sanitary district annexation
146.19in the State Register and mail or e-mail information of the publication to each property
146.20owner in the affected territory at the owner's address as given by the county auditor. The
146.21information must state the date that the notice will appear in the State Register and give
146.22the Web site location for the State Register. The notice must:
146.23(1) describe the petition for sanitary district annexation;
146.24(2) describe the territory affected by the petition;
146.25(3) allow 30 days for submission of written comments on the petition;
146.26(4) state that a person who objects to the petition may submit a written request for
146.27hearing to the chief administrative law judge within 30 days of the publication of the
146.28notice in the State Register; and
146.29(5) state that if a timely request for hearing is not received, the chief administrative
146.30law judge may make a decision on the petition.
146.31(b) If 50 or more individual timely requests for hearing are received, the chief
146.32administrative law judge must hold a hearing on the petition according to the contested case
146.33provisions of chapter 14. The sanitary district or annexation area proposers are responsible
146.34for paying all costs involved in publicizing and holding a hearing on the petition.
147.1    Subd. 5. Hearing time, place. If a hearing is required under subdivision 4, the
147.2chief administrative law judge shall designate a time and place for a hearing according
147.3to section 442A.13.
147.4    Subd. 6. Relevant factors. (a) In arriving at a decision, the chief administrative law
147.5judge shall consider the following factors:
147.6(1) administrative feasibility under subdivision 1, paragraph (b);
147.7(2) public health, safety, and welfare impacts;
147.8(3) alternatives for managing the public health impacts;
147.9(4) equities of the petition proposal;
147.10(5) contours of the petition proposal; and
147.11(6) public notification of and interaction on the petition proposal.
147.12(b) Based upon these factors, the chief administrative law judge may order the
147.13annexation to the sanitary district on finding that:
147.14(1) the sanitary district is knowledgeable and experienced in delivering sanitary sewer
147.15services to ratepayers and has provided quality service in a fair and cost-effective manner;
147.16(2) the proposed annexation provides a long-term, equitable solution to pollution
147.17problems affecting public health, safety, and welfare;
147.18(3) property owners within the existing sanitary district and proposed annexation
147.19area were provided notice of the proposed district and opportunity to comment on the
147.20petition proposal; and
147.21(4) the petition complied with the requirements of all applicable statutes and rules
147.22pertaining to sanitary district annexation.
147.23(c) The chief administrative law judge may alter the boundaries of the proposed
147.24annexation area by increasing or decreasing the area to be included or may exclude
147.25property that may be better served by another unit of government. The chief administrative
147.26law judge may also alter the boundaries of the proposed annexation area so as to follow
147.27visible, clearly recognizable physical features for municipal boundaries.
147.28(d) The chief administrative law judge may deny sanitary district annexation if the
147.29area, or a part thereof, would be better served by an alternative method.
147.30(e) In all cases, the chief administrative law judge shall set forth the factors that are
147.31the basis for the decision.
147.32    Subd. 7. Findings; order. (a) After the public notice period or the public hearing, if
147.33required under subdivision 4, and based on the petition, any public comments received,
147.34and, if a hearing was held, the hearing record, the chief administrative law judge shall
147.35make findings of fact and conclusions determining whether the conditions requisite for
147.36the sanitary district annexation exist in the territory described in the petition. If the chief
148.1administrative law judge finds that conditions exist, the judge may make an order for
148.2sanitary district annexation for the territory described in the petition.
148.3(b) All taxable property within the annexed area shall be subject to taxation for
148.4any existing bonded indebtedness or other indebtedness of the district for the cost of
148.5acquisition, construction, or improvement of any disposal system or other works or
148.6facilities beneficial to the annexed area to such extent as the chief administrative law judge
148.7may determine to be just and equitable, to be specified in the order for annexation. The
148.8proper officers shall levy further taxes on such property accordingly.
148.9    Subd. 8. Denial of petition. If the chief administrative law judge, after conclusion
148.10of the public notice period or holding a hearing, if required, determines that the sanitary
148.11district annexation in the territory described in the petition is not warranted, the judge shall
148.12make an order denying the petition. The chief administrative law judge shall give notice
148.13of the denial by mail or e-mail to each signer of the petition. No petition for a sanitary
148.14district annexation consisting of the same territory shall be entertained within a year
148.15after the date of an order under this subdivision. Nothing in this subdivision precludes
148.16action on a petition for a sanitary district annexation embracing part of the territory with
148.17or without other territory.
148.18    Subd. 9. Notice of order for sanitary district annexation. The chief administrative
148.19law judge shall publish in the State Register a notice of the final order for sanitary district
148.20annexation, referring to the date of the order and describing the territory of the annexation
148.21area, and shall mail or e-mail information of the publication to each property owner in the
148.22affected territory at the owner's address as given by the county auditor. The information
148.23must state the date that the notice will appear in the State Register and give the Web site
148.24location for the State Register. The notice must:
148.25(1) describe the petition for annexation to the district;
148.26(2) describe the territory affected by the petition; and
148.27(3) state that a certified copy of the order shall be delivered to the secretary of state
148.28for filing ten days after public notice of the order in the State Register.
148.29    Subd. 10. Filing. Ten days after public notice of the order in the State Register, the
148.30chief administrative law judge shall deliver a certified copy of the order to the secretary
148.31of state for filing. Thereupon, the sanitary district annexation is deemed complete, and it
148.32shall be conclusively presumed that all requirements of law relating thereto have been
148.33complied with. The chief administrative law judge shall also transmit a certified copy of
148.34the order for filing to the county auditor of each county and the clerk or recorder of each
148.35municipality and organized town wherein any part of the territory of the district, including
148.36the newly annexed area, is situated and to the secretary of the district board.

149.1    Sec. 8. [442A.06] SANITARY DISTRICT DETACHMENT.
149.2    Subdivision 1. Detachment. (a) A sanitary district detachment may occur under this
149.3chapter for any area within an existing district upon a petition to the chief administrative
149.4law judge stating the grounds therefor as provided in this section.
149.5(b) The proposed detachment must not have any negative environmental impact
149.6on the proposed detachment area.
149.7(c) If the chief administrative law judge and the Minnesota Pollution Control
149.8Agency disagree on the need for a sanitary district detachment, they must determine
149.9whether not allowing the sanitary district detachment will have a detrimental effect on
149.10the environment. If it is determined that the sanitary district detachment will cause
149.11environmental harm, the sanitary district detachment is not allowed unless the detached
149.12area is immediately connected to an existing wastewater treatment system.
149.13    Subd. 2. Proceeding for detachment. (a) A proceeding for sanitary district
149.14detachment may be initiated by a petition to the chief administrative law judge containing
149.15the following:
149.16(1) a request for proposed detachment from a sanitary district;
149.17(2) a statement that the requisite conditions for inclusion in a district no longer exist
149.18in the proposed detachment area;
149.19(3) a legal description of the territory of the proposed detachment, including
149.20justification for inclusion or exclusion for all parcels;
149.21(4) addresses of every property owner within the sanitary district and proposed
149.22detachment area boundaries as provided by the county auditor, with certification from the
149.23county auditor; two sets of address labels for said owners; and a list of e-mail addresses
149.24for said owners, if available;
149.25(5) a statement of the territorial units represented by and qualifications of the
149.26respective signers; and
149.27(6) the post office address of each signer, given under the signer's signature.
149.28A petition may consist of separate writings of like effect, each signed by one or more
149.29qualified persons, and all such writings, when filed, shall be considered together as a
149.30single petition.
149.31(b) Petitioners must conduct and pay for a public meeting to inform citizens of
149.32the proposed detachment from a sanitary district. At the meeting, information must be
149.33provided, including a description of the existing district's territory and a description of the
149.34territory of the proposed detachment area, including justification for inclusion or exclusion
149.35for all parcels for the detachment area. Notice of the meeting must be published for two
149.36successive weeks in a qualified newspaper, as defined under chapter 331A, published
150.1within the territories of the existing sanitary district and proposed detachment area or, if
150.2there is no qualified newspaper published within those territories, in a qualified newspaper
150.3of general circulation in the territories, and must be posted for two weeks in each territorial
150.4unit of the existing sanitary district and proposed detachment area and on the Web site
150.5of the existing sanitary district, if one exists. Notice of the meeting must be mailed or
150.6e-mailed at least three weeks prior to the meeting to all property tax billing addresses for
150.7all parcels included in the sanitary district. The following must be submitted to the chief
150.8administrative law judge with the petition:
150.9(1) a record of the meeting, including copies of all information provided at the
150.10meeting;
150.11(2) a copy of the mailing list provided by the county auditor and used to notify
150.12property owners of the meeting;
150.13(3) a copy of the e-mail list used to notify property owners of the meeting;
150.14(4) the printer's affidavit of publication of public meeting notice;
150.15(5) an affidavit of posting the public meeting notice with information on dates and
150.16locations of posting; and
150.17(6) minutes or other record of the public meeting documenting that the following
150.18topics were discussed: printer's affidavit of publication of each resolution, with copy
150.19of resolution from newspaper attached; and affidavit of resolution posting on town or
150.20existing sanitary district Web site.
150.21(c) Every petition must be signed as follows:
150.22(1) by an authorized officer of the existing sanitary district pursuant to a resolution
150.23of the board;
150.24(2) for each municipality wherein there is a territorial unit of the proposed detachment
150.25area, by an authorized officer pursuant to a resolution of the municipal governing body;
150.26(3) for each organized town wherein there is a territorial unit of the proposed
150.27detachment area, by an authorized officer pursuant to a resolution of the town board; and
150.28(4) for each county wherein there is a territorial unit of the proposed detachment area
150.29consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
150.30county board or by at least 20 percent of the voters residing and owning land within the unit.
150.31(d) Each resolution must be published in the official newspaper of the governing
150.32body adopting it and becomes effective 40 days after publication, unless within said period
150.33there shall be filed with the governing body a petition signed by qualified electors of a
150.34territorial unit of the proposed detachment area, equal in number to five percent of the
150.35number of electors voting at the last preceding election of the governing body, requesting
150.36a referendum on the resolution, in which case the resolution may not become effective
151.1until approved by a majority of the qualified electors voting at a regular election or special
151.2election that the governing body may call. The notice of an election and the ballot to be
151.3used must contain the text of the resolution followed by the question: "Shall the above
151.4resolution be approved?"
151.5(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
151.6the signer's landowner status as shown by the county auditor's tax assessment records,
151.7certified by the auditor, shall be attached to or endorsed upon the petition.
151.8(f) At any time before publication of the public notice required in subdivision 4,
151.9additional signatures may be added to the petition or amendments of the petition may be
151.10made to correct or remedy any error or defect in signature or otherwise except a material
151.11error or defect in the description of the territory of the proposed detachment area. If the
151.12qualifications of any signer of a petition are challenged, the chief administrative law judge
151.13shall determine the challenge forthwith on the allegations of the petition, the county
151.14auditor's certificate of land ownership, and such other evidence as may be received.
151.15    Subd. 3. Joint petition. Different areas may be detached from a district in a single
151.16proceeding upon a joint petition therefor and upon compliance with the provisions of
151.17subdivisions 1 and 2 with respect to the area affected so far as applicable.
151.18    Subd. 4. Notice of intent for sanitary district detachment. (a) Upon receipt
151.19of a petition and record of public meeting required under subdivision 2, the chief
151.20administrative law judge shall publish a notice of intent for sanitary district detachment
151.21in the State Register and mail or e-mail information of the publication to each property
151.22owner in the affected territory at the owner's address as given by the county auditor. The
151.23information must state the date that the notice will appear in the State Register and give
151.24the Web site location for the State Register. The notice must:
151.25(1) describe the petition for sanitary district detachment;
151.26(2) describe the territory affected by the petition;
151.27(3) allow 30 days for submission of written comments on the petition;
151.28(4) state that a person who objects to the petition may submit a written request for
151.29hearing to the chief administrative law judge within 30 days of the publication of the
151.30notice in the State Register; and
151.31(5) state that if a timely request for hearing is not received, the chief administrative
151.32law judge may make a decision on the petition.
151.33(b) If 50 or more individual timely requests for hearing are received, the chief
151.34administrative law judge must hold a hearing on the petition according to the contested case
151.35provisions of chapter 14. The sanitary district or detachment area proposers are responsible
151.36for paying all costs involved in publicizing and holding a hearing on the petition.
152.1    Subd. 5. Hearing time, place. If a hearing is required under subdivision 4, the
152.2chief administrative law judge shall designate a time and place for a hearing according
152.3to section 442A.13.
152.4    Subd. 6. Relevant factors. (a) In arriving at a decision, the chief administrative law
152.5judge shall consider the following factors:
152.6(1) public health, safety, and welfare impacts for the proposed detachment area;
152.7(2) alternatives for managing the public health impacts for the proposed detachment
152.8area;
152.9(3) equities of the petition proposal;
152.10(4) contours of the petition proposal; and
152.11(5) public notification of and interaction on the petition proposal.
152.12(b) Based upon these factors, the chief administrative law judge may order the
152.13detachment from the sanitary district on finding that:
152.14(1) the proposed detachment area has adequate alternatives for managing public
152.15health impacts due to the detachment;
152.16(2) the proposed detachment area is not necessary for the district to provide a
152.17long-term, equitable solution to pollution problems affecting public health, safety, and
152.18welfare;
152.19(3) property owners within the existing sanitary district and proposed detachment
152.20area were provided notice of the proposed detachment and opportunity to comment on
152.21the petition proposal; and
152.22(4) the petition complied with the requirements of all applicable statutes and rules
152.23pertaining to sanitary district detachment.
152.24(c) The chief administrative law judge may alter the boundaries of the proposed
152.25detachment area by increasing or decreasing the area to be included or may exclude
152.26property that may be better served by another unit of government. The chief administrative
152.27law judge may also alter the boundaries of the proposed detachment area so as to follow
152.28visible, clearly recognizable physical features for municipal boundaries.
152.29(d) The chief administrative law judge may deny sanitary district detachment if the
152.30area, or a part thereof, would be better served by an alternative method.
152.31(e) In all cases, the chief administrative law judge shall set forth the factors that are
152.32the basis for the decision.
152.33    Subd. 7. Findings; order. (a) After the public notice period or the public hearing, if
152.34required under subdivision 4, and based on the petition, any public comments received,
152.35and, if a hearing was held, the hearing record, the chief administrative law judge shall
152.36make findings of fact and conclusions determining whether the conditions requisite for
153.1the sanitary district detachment exist in the territory described in the petition. If the chief
153.2administrative law judge finds that conditions exist, the judge may make an order for
153.3sanitary district detachment for the territory described in the petition.
153.4(b) All taxable property within the detached area shall remain subject to taxation
153.5for any existing bonded indebtedness of the district to such extent as it would have been
153.6subject thereto if not detached and shall also remain subject to taxation for any other
153.7existing indebtedness of the district incurred for any purpose beneficial to such area to
153.8such extent as the chief administrative law judge may determine to be just and equitable,
153.9to be specified in the order for detachment. The proper officers shall levy further taxes on
153.10such property accordingly.
153.11    Subd. 8. Denial of petition. If the chief administrative law judge, after conclusion
153.12of the public notice period or holding a hearing, if required, determines that the sanitary
153.13district detachment in the territory described in the petition is not warranted, the judge
153.14shall make an order denying the petition. The chief administrative law judge shall give
153.15notice of the denial by mail or e-mail to each signer of the petition. No petition for a
153.16detachment from a district consisting of the same territory shall be entertained within a
153.17year after the date of an order under this subdivision. Nothing in this subdivision precludes
153.18action on a petition for a detachment from a district embracing part of the territory with
153.19or without other territory.
153.20    Subd. 9. Notice of order for sanitary district detachment. The chief
153.21administrative law judge shall publish in the State Register a notice of the final order
153.22for sanitary district detachment, referring to the date of the order and describing the
153.23territory of the detached area and shall mail or e-mail information of the publication
153.24to each property owner in the affected territory at the owner's address as given by the
153.25county auditor. The information must state the date that the notice will appear in the State
153.26Register and give the Web site location for the State Register. The notice must:
153.27(1) describe the petition for detachment from the district;
153.28(2) describe the territory affected by the petition; and
153.29(3) state that a certified copy of the order shall be delivered to the secretary of state
153.30for filing ten days after public notice of the order in the State Register.
153.31    Subd. 10. Filing. Ten days after public notice of the order in the State Register, the
153.32chief administrative law judge shall deliver a certified copy of the order to the secretary of
153.33state for filing. Thereupon, the sanitary district detachment is deemed complete, and it
153.34shall be conclusively presumed that all requirements of law relating thereto have been
153.35complied with. The chief administrative law judge shall also transmit a certified copy of
153.36the order for filing to the county auditor of each county and the clerk or recorder of each
154.1municipality and organized town wherein any part of the territory of the district, including
154.2the newly detached area, is situated and to the secretary of the district board.

154.3    Sec. 9. [442A.07] SANITARY DISTRICT DISSOLUTION.
154.4    Subdivision 1. Dissolution. (a) An existing sanitary district may be dissolved under
154.5this chapter upon a petition to the chief administrative law judge stating the grounds
154.6therefor as provided in this section.
154.7(b) The proposed dissolution must not have any negative environmental impact on
154.8the existing sanitary district area.
154.9(c) If the chief administrative law judge and the Minnesota Pollution Control
154.10Agency disagree on the need to dissolve a sanitary district, they must determine whether
154.11not dissolving the sanitary district will have a detrimental effect on the environment. If
154.12it is determined that the sanitary district dissolution will cause environmental harm, the
154.13sanitary district dissolution is not allowed unless the existing sanitary district area is
154.14immediately connected to an existing wastewater treatment system.
154.15    Subd. 2. Proceeding for dissolution. (a) A proceeding for sanitary district
154.16dissolution may be initiated by a petition to the chief administrative law judge containing
154.17the following:
154.18(1) a request for proposed sanitary district dissolution;
154.19(2) a statement that the requisite conditions for a sanitary district no longer exist
154.20in the district area;
154.21(3) a proposal for distribution of the remaining funds of the district, if any, among
154.22the related governmental subdivisions;
154.23(4) a legal description of the territory of the proposed dissolution;
154.24(5) addresses of every property owner within the sanitary district boundaries as
154.25provided by the county auditor, with certification from the county auditor; two sets of
154.26address labels for said owners; and a list of e-mail addresses for said owners, if available;
154.27(6) a statement of the territorial units represented by and the qualifications of the
154.28respective signers; and
154.29(7) the post office address of each signer, given under the signer's signature.
154.30A petition may consist of separate writings of like effect, each signed by one or more
154.31qualified persons, and all such writings, when filed, shall be considered together as a
154.32single petition.
154.33(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
154.34proposed dissolution of a sanitary district. At the meeting, information must be provided,
154.35including a description of the existing district's territory. Notice of the meeting must be
155.1published for two successive weeks in a qualified newspaper, as defined under chapter
155.2331A, published within the territory of the sanitary district or, if there is no qualified
155.3newspaper published within that territory, in a qualified newspaper of general circulation
155.4in the territory and must be posted for two weeks in each territorial unit of the sanitary
155.5district and on the Web site of the existing sanitary district, if one exists. Notice of the
155.6meeting must be mailed or e-mailed at least three weeks prior to the meeting to all property
155.7tax billing addresses for all parcels included in the sanitary district. The following must be
155.8submitted to the chief administrative law judge with the petition:
155.9(1) a record of the meeting, including copies of all information provided at the
155.10meeting;
155.11(2) a copy of the mailing list provided by the county auditor and used to notify
155.12property owners of the meeting;
155.13(3) a copy of the e-mail list used to notify property owners of the meeting;
155.14(4) the printer's affidavit of publication of public meeting notice;
155.15(5) an affidavit of posting the public meeting notice with information on dates and
155.16locations of posting; and
155.17(6) minutes or other record of the public meeting documenting that the following
155.18topics were discussed: printer's affidavit of publication of each resolution, with copy
155.19of resolution from newspaper attached; and affidavit of resolution posting on town or
155.20existing sanitary district Web site.
155.21(c) Every petition must be signed as follows:
155.22(1) by an authorized officer of the existing sanitary district pursuant to a resolution
155.23of the board;
155.24(2) for each municipality wherein there is a territorial unit of the existing sanitary
155.25district, by an authorized officer pursuant to a resolution of the municipal governing body;
155.26(3) for each organized town wherein there is a territorial unit of the existing sanitary
155.27district, by an authorized officer pursuant to a resolution of the town board; and
155.28(4) for each county wherein there is a territorial unit of the existing sanitary district
155.29consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
155.30county board or by at least 20 percent of the voters residing and owning land within the unit.
155.31(d) Each resolution must be published in the official newspaper of the governing body
155.32adopting it and becomes effective 40 days after publication, unless within said period there
155.33shall be filed with the governing body a petition signed by qualified electors of a territorial
155.34unit of the district, equal in number to five percent of the number of electors voting at the
155.35last preceding election of the governing body, requesting a referendum on the resolution,
155.36in which case the resolution may not become effective until approved by a majority of the
156.1qualified electors voting at a regular election or special election that the governing body
156.2may call. The notice of an election and the ballot to be used must contain the text of the
156.3resolution followed by the question: "Shall the above resolution be approved?"
156.4(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
156.5the signer's landowner status as shown by the county auditor's tax assessment records,
156.6certified by the auditor, shall be attached to or endorsed upon the petition.
156.7(f) At any time before publication of the public notice required in subdivision 3,
156.8additional signatures may be added to the petition or amendments of the petition may be
156.9made to correct or remedy any error or defect in signature or otherwise except a material
156.10error or defect in the description of the territory of the proposed dissolution area. If the
156.11qualifications of any signer of a petition are challenged, the chief administrative law judge
156.12shall determine the challenge forthwith on the allegations of the petition, the county
156.13auditor's certificate of land ownership, and such other evidence as may be received.
156.14    Subd. 3. Notice of intent for sanitary district dissolution. (a) Upon receipt
156.15of a petition and record of the public meeting required under subdivision 2, the chief
156.16administrative law judge shall publish a notice of intent of sanitary district dissolution
156.17in the State Register and mail or e-mail information of the publication to each property
156.18owner in the affected territory at the owner's address as given by the county auditor. The
156.19information must state the date that the notice will appear in the State Register and give
156.20the Web site location for the State Register. The notice must:
156.21(1) describe the petition for sanitary district dissolution;
156.22(2) describe the territory affected by the petition;
156.23(3) allow 30 days for submission of written comments on the petition;
156.24(4) state that a person who objects to the petition may submit a written request for
156.25hearing to the chief administrative law judge within 30 days of the publication of the
156.26notice in the State Register; and
156.27(5) state that if a timely request for hearing is not received, the chief administrative
156.28law judge may make a decision on the petition.
156.29(b) If 50 or more individual timely requests for hearing are received, the chief
156.30administrative law judge must hold a hearing on the petition according to the contested
156.31case provisions of chapter 14. The sanitary district dissolution proposers are responsible
156.32for paying all costs involved in publicizing and holding a hearing on the petition.
156.33    Subd. 4. Hearing time, place. If a hearing is required under subdivision 3, the
156.34chief administrative law judge shall designate a time and place for a hearing according
156.35to section 442A.13.
157.1    Subd. 5. Relevant factors. (a) In arriving at a decision, the chief administrative law
157.2judge shall consider the following factors:
157.3(1) public health, safety, and welfare impacts for the proposed dissolution;
157.4(2) alternatives for managing the public health impacts for the proposed dissolution;
157.5(3) equities of the petition proposal;
157.6(4) contours of the petition proposal; and
157.7(5) public notification of and interaction on the petition proposal.
157.8(b) Based upon these factors, the chief administrative law judge may order the
157.9dissolution of the sanitary district on finding that:
157.10(1) the proposed dissolution area has adequate alternatives for managing public
157.11health impacts due to the dissolution;
157.12(2) the sanitary district is not necessary to provide a long-term, equitable solution to
157.13pollution problems affecting public health, safety, and welfare;
157.14(3) property owners within the sanitary district were provided notice of the proposed
157.15dissolution and opportunity to comment on the petition proposal; and
157.16(4) the petition complied with the requirements of all applicable statutes and rules
157.17pertaining to sanitary district dissolution.
157.18(c) The chief administrative law judge may alter the boundaries of the proposed
157.19dissolution area by increasing or decreasing the area to be included or may exclude
157.20property that may be better served by another unit of government. The chief administrative
157.21law judge may also alter the boundaries of the proposed dissolution area so as to follow
157.22visible, clearly recognizable physical features for municipal boundaries.
157.23(d) The chief administrative law judge may deny sanitary district dissolution if the
157.24area, or a part thereof, would be better served by an alternative method.
157.25(e) In all cases, the chief administrative law judge shall set forth the factors that are
157.26the basis for the decision.
157.27    Subd. 6. Findings; order. (a) After the public notice period or the public hearing, if
157.28required under subdivision 3, and based on the petition, any public comments received,
157.29and, if a hearing was held, the hearing record, the chief administrative law judge shall
157.30make findings of fact and conclusions determining whether the conditions requisite for
157.31the sanitary district dissolution exist in the territory described in the petition. If the chief
157.32administrative law judge finds that conditions exist, the judge may make an order for
157.33sanitary district dissolution for the territory described in the petition.
157.34(b) If the chief administrative law judge determines that the conditions requisite for
157.35the creation of the district no longer exist therein, that all indebtedness of the district has
157.36been paid, and that all property of the district except funds has been disposed of, the judge
158.1may make an order dissolving the district and directing the distribution of its remaining
158.2funds, if any, among the related governmental subdivisions on such basis as the chief
158.3administrative law judge determines to be just and equitable, to be specified in the order.
158.4    Subd. 7. Denial of petition. If the chief administrative law judge, after conclusion
158.5of the public notice period or holding a hearing, if required, determines that the sanitary
158.6district dissolution in the territory described in the petition is not warranted, the judge
158.7shall make an order denying the petition. The chief administrative law judge shall give
158.8notice of the denial by mail or e-mail to each signer of the petition. No petition for the
158.9dissolution of a district consisting of the same territory shall be entertained within a year
158.10after the date of an order under this subdivision.
158.11    Subd. 8. Notice of order for sanitary district dissolution. The chief administrative
158.12law judge shall publish in the State Register a notice of the final order for sanitary
158.13district dissolution, referring to the date of the order and describing the territory of the
158.14dissolved district and shall mail or e-mail information of the publication to each property
158.15owner in the affected territory at the owner's address as given by the county auditor. The
158.16information must state the date that the notice will appear in the State Register and give
158.17the Web site location of the State Register. The notice must:
158.18(1) describe the petition for dissolution of the district;
158.19(2) describe the territory affected by the petition; and
158.20(3) state that a certified copy of the order shall be delivered to the secretary of state
158.21for filing ten days after public notice of the order in the State Register.
158.22    Subd. 9. Filing. (a) Ten days after public notice of the order in the State Register,
158.23the chief administrative law judge shall deliver a certified copy of the order to the secretary
158.24of state for filing. Thereupon, the sanitary district dissolution is deemed complete, and it
158.25shall be conclusively presumed that all requirements of law relating thereto have been
158.26complied with. The chief administrative law judge shall also transmit a certified copy of
158.27the order for filing to the county auditor of each county and the clerk or recorder of each
158.28municipality and organized town wherein any part of the territory of the dissolved district
158.29is situated and to the secretary of the district board.
158.30(b) The chief administrative law judge shall also transmit a certified copy of the order
158.31to the treasurer of the district, who must thereupon distribute the remaining funds of the
158.32district as directed by the order and who is responsible for the funds until so distributed.

158.33    Sec. 10. [442A.08] JOINT PUBLIC INFORMATIONAL MEETING.
158.34There must be a joint public informational meeting of the local governments of any
158.35proposed sanitary district creation, annexation, detachment, or dissolution. The joint public
159.1informational meeting must be held after the final mediation meeting or the final meeting
159.2held according to section 442A.02, subdivision 8, if any, and before the hearing on the
159.3matter is held. If no mediation meetings are held, the joint public informational meeting
159.4must be held after the initiating documents have been filed and before the hearing on the
159.5matter. The time, date, and place of the public informational meeting must be determined
159.6jointly by the local governments in the proposed creation, annexation, detachment, or
159.7dissolution areas and by the sanitary district, if one exists. The chair of the sanitary district,
159.8if one exists, and the responsible official for one of the local governments represented at
159.9the meeting must serve as the co-chairs for the informational meeting. Notice of the time,
159.10date, place, and purpose of the informational meeting must be posted by the sanitary
159.11district, if one exists, and local governments in designated places for posting notices. The
159.12sanitary district, if one exists, and represented local governments must also publish, at their
159.13own expense, notice in their respective official newspapers. If the same official newspaper
159.14is used by multiple local government representatives or the sanitary district, a joint notice
159.15may be published and the costs evenly divided. All notice required by this section must
159.16be provided at least ten days before the date for the public informational meeting. At the
159.17public informational meeting, all persons appearing must have an opportunity to be heard,
159.18but the co-chairs may, by mutual agreement, establish the amount of time allowed for each
159.19speaker. The sanitary district board, the local government representatives, and any resident
159.20or affected property owner may be represented by counsel and may place into the record of
159.21the informational meeting documents, expert opinions, or other materials supporting their
159.22positions on issues raised by the proposed proceeding. The secretary of the sanitary district,
159.23if one exists, or a person appointed by the chair must record minutes of the proceedings of
159.24the informational meeting and must make an audio recording of the informational meeting.
159.25The sanitary district, if one exists, or a person appointed by the chair must provide the
159.26chief administrative law judge and the represented local governments with a copy of the
159.27printed minutes and must provide the chief administrative law judge and the represented
159.28local governments with a copy of the audio recording. The record of the informational
159.29meeting for a proceeding under section 442A.04, 442A.05, 442A.06, or 442A.07 is
159.30admissible in any proceeding under this chapter and shall be taken into consideration by
159.31the chief administrative law judge or the chief administrative law judge's designee.

159.32    Sec. 11. [442A.09] ANNEXATION BY ORDER OF POLLUTION CONTROL
159.33AGENCY.
159.34    Subdivision 1. Annexation by ordinance alternative. If a determination or order
159.35by the Minnesota Pollution Control Agency under section 115.49 or other similar statute is
160.1made that cooperation by contract is necessary and feasible between a sanitary district and
160.2an unincorporated area located outside the existing corporate limits of the sanitary district,
160.3the sanitary district required to provide or extend through a contract a governmental
160.4service to an unincorporated area, during the statutory 90-day period provided in section
160.5115.49 to formulate a contract, may in the alternative to formulating a service contract to
160.6provide or extend the service, declare the unincorporated area described in the Minnesota
160.7Pollution Control Agency's determination letter or order annexed to the sanitary district by
160.8adopting an ordinance and submitting it to the chief administrative law judge.
160.9    Subd. 2. Chief administrative law judge's role. The chief administrative law
160.10judge may review and comment on the ordinance but shall approve the ordinance within
160.1130 days of receipt. The ordinance is final and the annexation is effective on the date the
160.12chief administrative law judge approves the ordinance.

160.13    Sec. 12. [442A.10] PETITIONERS TO PAY EXPENSES.
160.14Expenses of the preparation and submission of petitions in the proceedings under
160.15sections 442A.04 to 442A.09 shall be paid by the petitioners. Notwithstanding section
160.1616A.1283, the Office of Administrative Hearings may adopt rules according to section
160.1714.386 to establish fees necessary to support the preparation and submission of petitions
160.18in proceedings under sections 442A.04 to 442A.09. The fees collected by the Office of
160.19Administrative Hearings shall be deposited in the environmental fund.
160.20EFFECTIVE DATE.This section is effective the day following final enactment.

160.21    Sec. 13. [442A.11] TIME LIMITS FOR ORDERS; APPEALS.
160.22    Subdivision 1. Orders; time limit. All orders in proceedings under this chapter
160.23shall be issued within one year from the date of the first hearing thereon, provided that
160.24the time may be extended for a fixed additional period upon consent of all parties of
160.25record. Failure to so order shall be deemed to be an order denying the matter. An appeal
160.26may be taken from such failure to so order in the same manner as an appeal from an
160.27order as provided in subdivision 2.
160.28    Subd. 2. Grounds for appeal. (a) Any person aggrieved by an order issued under
160.29this chapter may appeal to the district court upon the following grounds:
160.30(1) the order was issued without jurisdiction to act;
160.31(2) the order exceeded the jurisdiction of the presiding administrative law judge;
160.32(3) the order was arbitrary, fraudulent, capricious, or oppressive or in unreasonable
160.33disregard of the best interests of the territory affected; or
160.34(4) the order was based upon an erroneous theory of law.
161.1(b) The appeal must be taken in the district court in the county in which the majority
161.2of the area affected is located. The appeal does not stay the effect of the order. All notices
161.3and other documents must be served on both the chief administrative law judge and the
161.4attorney general's assistant assigned to the chief administrative law judge for purposes
161.5of this chapter.
161.6(c) If the court determines that the action involved is unlawful or unreasonable or is
161.7not warranted by the evidence in case an issue of fact is involved, the court may vacate or
161.8suspend the action involved, in whole or in part, as the case requires. The matter shall then
161.9be remanded for further action in conformity with the decision of the court.
161.10(d) To render a review of an order effectual, the aggrieved person shall file with the
161.11court administrator of the district court of the county in which the majority of the area is
161.12located, within 30 days of the order, an application for review together with the grounds
161.13upon which the review is sought.
161.14(e) An appeal lies from the district court as in other civil cases.

161.15    Sec. 14. [442A.12] CHIEF ADMINISTRATIVE LAW JUDGE MAY APPEAL
161.16FROM DISTRICT COURT.
161.17An appeal may be taken under the Rules of Civil Appellate Procedure by the chief
161.18administrative law judge from a final order or judgment made or rendered by the district
161.19court when the chief administrative law judge determines that the final order or judgment
161.20adversely affects the public interest.

161.21    Sec. 15. [442A.13] UNIFORM PROCEDURES.
161.22    Subdivision 1. Hearings. (a) Proceedings initiated by the submission of an initiating
161.23document or by the chief administrative law judge shall come on for hearing within 30 to
161.2460 days from receipt of the document by the chief administrative law judge or from the
161.25date of the chief administrative law judge's action and the person conducting the hearing
161.26must submit an order no later than one year from the date of the first hearing.
161.27(b) The place of the hearing shall be in the county where a majority of the affected
161.28territory is situated, and shall be established for the convenience of the parties.
161.29(c) The chief administrative law judge shall mail notice of the hearing to the
161.30following parties: the sanitary district; any township or municipality presently governing
161.31the affected territory; any township or municipality abutting the affected territory;
161.32the county where the affected territory is situated; and each planning agency that has
161.33jurisdiction over the affected area.
162.1(d) The chief administrative law judge shall see that notice of the hearing is published
162.2for two successive weeks in a legal newspaper of general circulation in the affected area.
162.3(e) When the chief administrative law judge exercises authority to change the
162.4boundaries of the affected area so as to increase the quantity of land, the hearing shall
162.5be recessed and reconvened upon two weeks' published notice in a legal newspaper of
162.6general circulation in the affected area.
162.7    Subd. 2. Transmittal of order. The chief administrative law judge shall see that
162.8copies of the order are mailed to all parties entitled to mailed notice of hearing under
162.9subdivision 1, individual property owners if initiated in that manner, and any other party
162.10of record.

162.11    Sec. 16. [442A.14] DISTRICT BOARD OF MANAGERS.
162.12    Subdivision 1. Composition. The governing body of each district shall be a board
162.13of managers of five members, who shall be voters residing in the district and who may
162.14but need not be officers, members of governing bodies, or employees of the related
162.15governmental subdivisions, except that when there are more than five territorial units in
162.16a district, there must be one board member for each unit.
162.17    Subd. 2. Terms. The terms of the first board members elected after creation of a
162.18district shall be so arranged and determined by the electing body as to expire on the first
162.19business day in January as follows:
162.20(1) the terms of two members in the second calendar year after the year in which
162.21they were elected;
162.22(2) the terms of two other members in the third calendar year after the year in which
162.23they were elected; and
162.24(3) the term of the remaining member in the fourth calendar year after the year in
162.25which the member was elected. In case a board has more than five members, the additional
162.26members shall be assigned to the groups under clauses (1) to (3) to equalize the groups as
162.27far as practicable. Thereafter, board members shall be elected successively for regular
162.28terms beginning upon expiration of the preceding terms and expiring on the first business
162.29day in January of the third calendar year thereafter. Each board member serves until
162.30a successor is elected and has qualified.
162.31    Subd. 3. Election of board. In a district having only one territorial unit, all the
162.32members of the board shall be elected by the related governing body. In a district having
162.33more than one territorial unit, the members of the board shall be elected by the members
162.34of the related governing bodies in joint session except as otherwise provided. The electing
162.35bodies concerned shall meet and elect the first board members of a new district as soon
163.1as practicable after creation of the district and shall meet and elect board members for
163.2succeeding regular terms as soon as practicable after November 1 next preceding the
163.3beginning of the terms to be filled, respectively.
163.4    Subd. 4. Central related governing body. Upon the creation of a district
163.5having more than one territorial unit, the chief administrative law judge, on the basis of
163.6convenience for joint meeting purposes, shall designate one of the related governing
163.7bodies as the central related governing body in the order creating the district or in a
163.8subsequent special order, of which the chief administrative law judge shall notify the
163.9clerks or recorders of all the related governing bodies. Upon receipt of the notification,
163.10the clerk or recorder of the central related governing body shall immediately transmit the
163.11notification to the presiding officer of the body. The officer shall thereupon call a joint
163.12meeting of the members of all the related governing bodies to elect board members, to
163.13be held at such time as the officer shall fix at the regular meeting place of the officer's
163.14governing body or at such other place in the district as the officer shall determine. The
163.15clerk or recorder of the body must give at least ten days' notice of the meeting by mail to
163.16the clerks or recorders of all the other related governing bodies, who shall immediately
163.17transmit the notice to all the members of the related governing bodies, respectively.
163.18Subsequent joint meetings to elect board members for regular terms must be called and
163.19held in like manner. The presiding officer and the clerk or recorder of the central related
163.20governing body shall act respectively as chair and secretary of the joint electing body at
163.21any meeting thereof, but in case of the absence or disability of either of them, the body
163.22may elect a temporary substitute. A majority of the members of each related governing
163.23body is required for a quorum at any meeting of the joint electing body.
163.24    Subd. 5. Nominations. Nominations for board members may be made by petitions,
163.25each signed by ten or more voters residing and owning land in the district, filed with the
163.26clerk, recorder, or secretary of the electing body before the election meeting. No person
163.27shall sign more than one petition. The electing body shall give due consideration to all
163.28nominations but is not limited thereto.
163.29    Subd. 6. Election; single governing body. In the case of an electing body
163.30consisting of a single related governing body, a majority vote of all members is required
163.31for an election. In the case of a joint electing body, a majority vote of members present is
163.32required for an election. In case of lack of a quorum or failure to elect, a meeting of an
163.33electing body may be adjourned to a stated time and place without further notice.
163.34    Subd. 7. Election; multiple governing bodies. In any district having more than
163.35one territorial unit, the related governing bodies, instead of meeting in joint session, may
163.36elect a board member by resolutions adopted by all of them separately, concurring in the
164.1election of the same person. A majority vote of all members of each related governing
164.2body is required for the adoption of any such resolution. The clerks or recorders of the
164.3other related governing bodies shall transmit certified copies of the resolutions to the clerk
164.4or recorder of the central related governing body. Upon receipt of concurring resolutions
164.5from all the related governing bodies, the presiding officer and clerk or recorder of the
164.6central related governing body shall certify the results and furnish certificates of election
164.7as provided for a joint meeting.
164.8    Subd. 8. Vacancies. Any vacancy in the membership of a board must be filled for
164.9the unexpired term in like manner as provided for the regular election of board members.
164.10    Subd. 9. Certification of election; temporary chair. The presiding and recording
164.11officers of the electing body shall certify the results of each election to the county auditor
164.12of each county wherein any part of the district is situated and to the clerk or recorder of
164.13each related governing body and shall make and transmit to each board member elected
164.14a certificate of the board member's election. Upon electing the first board members of a
164.15district, the presiding officer of the electing body shall designate a member to serve as
164.16temporary chair for purposes of initial organization of the board, and the recording
164.17officer of the body shall include written notice thereof to all the board members with
164.18their certificates of election.

164.19    Sec. 17. [442A.15] BOARD ORGANIZATION AND PROCEDURES.
164.20    Subdivision 1. Initial, annual meetings. As soon as practicable after the election
164.21of the first board members of a district, the board shall meet at the call of the temporary
164.22chair to elect officers and take other appropriate action for organization and administration
164.23of the district. Each board shall hold a regular annual meeting at the call of the chair or
164.24otherwise as the board prescribes on or as soon as practicable after the first business day in
164.25January of each year and such other regular and special meetings as the board prescribes.
164.26    Subd. 2. Officers. The officers of each district shall be a chair and a vice-chair,
164.27who shall be members of the board, and a secretary and a treasurer, who may but need
164.28not be members of the board. The board of a new district at its initial meeting or as soon
164.29thereafter as practicable shall elect the officers to serve until the first business day in
164.30January next following. Thereafter, the board shall elect the officers at each regular annual
164.31meeting for terms expiring on the first business day in January next following. Each
164.32officer serves until a successor is elected and has qualified.
164.33    Subd. 3. Meeting place; offices. The board at its initial meeting or as soon
164.34thereafter as practicable shall provide for suitable places for board meetings and for offices
164.35of the district officers and may change the same thereafter as the board deems advisable.
165.1The meeting place and offices may be the same as those of any related governing body,
165.2with the approval of the body. The secretary of the board shall notify the secretary of state,
165.3the county auditor of each county wherein any part of the district is situated, and the clerk
165.4or recorder of each related governing body of the locations and post office addresses of the
165.5meeting place and offices and any changes therein.
165.6    Subd. 4. Budget. At any time before the proceeds of the first tax levy in a district
165.7become available, the district board may prepare a budget comprising an estimate of the
165.8expenses of organizing and administering the district until the proceeds are available, with
165.9a proposal for apportionment of the estimated amount among the related governmental
165.10subdivisions, and may request the governing bodies thereof to advance funds according to
165.11the proposal. The governing bodies may authorize advancement of the requested amounts,
165.12or such part thereof as they respectively deem proper, from any funds available in their
165.13respective treasuries. The board shall include in its first tax levy after receipt of any such
165.14advancements a sufficient sum to cover the same and shall cause the same to be repaid,
165.15without interest, from the proceeds of taxes as soon as received.

165.16    Sec. 18. [442A.16] DISTRICT STATUS AND POWERS.
165.17    Subdivision 1. Status. Every district shall be a public corporation and a governmental
165.18subdivision of the state and shall be deemed to be a municipality or municipal corporation
165.19for the purpose of obtaining federal or state grants or loans or otherwise complying with
165.20any provision of federal or state law or for any other purpose relating to the powers and
165.21purposes of the district for which such status is now or hereafter required by law.
165.22    Subd. 2. Powers and purpose. Every district shall have the powers and purposes
165.23prescribed by this chapter and such others as may now or hereafter be prescribed by law.
165.24No express grant of power or enumeration of powers herein shall be deemed to limit the
165.25generality or scope of any grant of power.
165.26    Subd. 3. Scope of powers and duties. Except as otherwise provided, a power or
165.27duty vested in or imposed upon a district or any of its officers, agents, or employees shall
165.28not be deemed exclusive and shall not supersede or abridge any power or duty vested in or
165.29imposed upon any other agency of the state or any governmental subdivision thereof, but
165.30shall be supplementary thereto.
165.31    Subd. 4. Exercise of power. All the powers of a district shall be exercised by its
165.32board of managers except so far as approval of any action by popular vote or by any other
165.33authority may be expressly required by law.
166.1    Subd. 5. Lawsuits; contracts. A district may sue and be sued and may enter into
166.2any contract necessary or proper for the exercise of its powers or the accomplishment
166.3of its purposes.
166.4    Subd. 6. Property acquisition. A district may acquire by purchase, gift, or
166.5condemnation or may lease or rent any real or personal property within or without the
166.6district that may be necessary for the exercise of district powers or the accomplishment of
166.7district purposes, may hold the property for such purposes, and may lease, rent out, sell, or
166.8otherwise dispose of any property not needed for such purposes.
166.9    Subd. 7. Acceptance of money or property. A district may accept gifts, grants,
166.10or loans of money or other property from the United States, the state, or any person,
166.11corporation, or other entity for district purposes; may enter into any agreement required in
166.12connection therewith; and may hold, use, and dispose of the money or property according
166.13to the terms of the gift, grant, loan, or agreement relating thereto.

166.14    Sec. 19. [442A.17] SPECIFIC PURPOSES AND POWERS.
166.15    Subdivision 1. Pollution prevention. A district may construct, install, improve,
166.16maintain, and operate any system, works, or facilities within or without the district
166.17required to control and prevent pollution of any waters of the state within its territory.
166.18    Subd. 2. Sewage disposal. A district may construct, install, improve, maintain,
166.19and operate any system, works, or facilities within or without the district required to
166.20provide for, regulate, and control the disposal of sewage, industrial waste, and other waste
166.21originating within its territory. The district may require any person upon whose premises
166.22there is any source of sewage, industrial waste, or other waste within the district to
166.23connect the premises with the disposal system, works, or facilities of the district whenever
166.24reasonable opportunity therefor is provided.
166.25    Subd. 3. Garbage, refuse disposal. A district may construct, install, improve,
166.26maintain, and operate any system, works, or facilities within or without the district required
166.27to provide for, regulate, and control the disposal of garbage or refuse originating within the
166.28district. The district may require any person upon whose premises any garbage or refuse is
166.29produced or accumulated to dispose of the garbage or refuse through the system, works, or
166.30facilities of the district whenever reasonable opportunity therefor is provided.
166.31    Subd. 4. Water supply. A district may procure supplies of water necessary for any
166.32purpose under subdivisions 1 to 3 and may construct, install, improve, maintain, and
166.33operate any system, works, or facilities required therefor within or without the district.
166.34    Subd. 5. Roads. (a) To maintain the integrity of and facilitate access to district
166.35systems, works, or facilities, the district may maintain and repair a road by agreement with
167.1the entity that was responsible for the performance of maintenance and repair immediately
167.2prior to the agreement. Maintenance and repair includes but is not limited to providing
167.3lighting, snow removal, and grass mowing.
167.4(b) A district shall establish a taxing subdistrict of benefited property and shall levy
167.5special taxes, pursuant to section 442A.24, subdivision 2, for the purposes of paying the
167.6cost of improvement or maintenance of a road under paragraph (a).
167.7(c) For purposes of this subdivision, a district shall not be construed as a road
167.8authority under chapter 160.
167.9(d) The district and its officers and employees are exempt from liability for any tort
167.10claim for injury to person or property arising from travel on a road maintained by the
167.11district and related to the road's maintenance or condition.

167.12    Sec. 20. [442A.18] DISTRICT PROJECTS AND FACILITIES.
167.13    Subdivision 1. Public property. For the purpose of constructing, improving,
167.14maintaining, or operating any system, works, or facilities designed or used for any purpose
167.15under section 442A.17, a district, its officers, agents, employees, and contractors may enter,
167.16occupy, excavate, and otherwise operate in, upon, under, through, or along any public
167.17highway, including a state trunk highway, or any street, park, or other public grounds so
167.18far as necessary for such work, with the approval of the governing body or other authority
167.19in charge of the public property affected and on such terms as may be agreed upon with the
167.20governing body or authority respecting interference with public use, restoration of previous
167.21conditions, compensation for damages, and other pertinent matters. If an agreement cannot
167.22be reached after reasonable opportunity therefor, the district may acquire the necessary
167.23rights, easements, or other interests in the public property by condemnation, subject to all
167.24applicable provisions of law as in case of taking private property, upon condition that the
167.25court shall determine that there is paramount public necessity for the acquisition.
167.26    Subd. 2. Use of other systems. A district may, upon such terms as may be
167.27agreed upon with the respective governing bodies or authorities concerned, provide for
167.28connecting with or using; lease; or acquire and take over any system, works, or facilities
167.29for any purpose under section 442A.17 belonging to any other governmental subdivision
167.30or other public agency.
167.31    Subd. 3. Use by other governmental bodies. A district may, upon such terms
167.32as may be agreed upon with the respective governing bodies or authorities concerned,
167.33authorize the use by any other governmental subdivision or other public agency of any
167.34system, works, or facilities of the district constructed for any purpose under section
167.35442A.17 so far as the capacity thereof is sufficient beyond the needs of the district. A
168.1district may extend any such system, works, or facilities and permit the use thereof by
168.2persons outside the district, so far as the capacity thereof is sufficient beyond the needs of
168.3the district, upon such terms as the board may prescribe.
168.4    Subd. 4. Joint projects. A district may be a party to a joint cooperative project,
168.5undertaking, or enterprise with one or more other governmental subdivisions or other
168.6public agencies for any purpose under section 442A.17 upon such terms as may be
168.7agreed upon between the governing bodies or authorities concerned. Without limiting the
168.8effect of the foregoing provision or any other provision of this chapter, a district, with
168.9respect to any of said purposes, may act under and be subject to section 471.59, or any
168.10other appropriate law providing for joint or cooperative action between governmental
168.11subdivisions or other public agencies.

168.12    Sec. 21. [442A.19] CONTROL OF SANITARY FACILITIES.
168.13A district may regulate and control the construction, maintenance, and use of privies,
168.14cesspools, septic tanks, toilets, and other facilities and devices for the reception or disposal
168.15of human or animal excreta or other domestic wastes within its territory so far as necessary
168.16to prevent nuisances or pollution or to protect the public health, safety, and welfare
168.17and may prohibit the use of any such facilities or devices not connected with a district
168.18disposal system, works, or facilities whenever reasonable opportunity for such connection
168.19is provided; provided, that the authority of a district under this section does not extend
168.20or apply to the construction, maintenance, operation, or use by any person other than the
168.21district of any disposal system or part thereof within the district under and in accordance
168.22with a valid and existing permit issued by the Minnesota Pollution Control Agency.

168.23    Sec. 22. [442A.20] DISTRICT PROGRAMS, SURVEYS, AND STUDIES.
168.24A district may develop general programs and particular projects within the scope of
168.25its powers and purposes and may make all surveys, studies, and investigations necessary
168.26for the programs and projects.

168.27    Sec. 23. [442A.21] GENERAL AND MUNICIPALITY POWERS.
168.28A district may do and perform all other acts and things necessary or proper for the
168.29effectuation of its powers and the accomplishment of its purposes. Without limiting the
168.30effect of the foregoing provision or any other provision of this chapter, a district, with
168.31respect to each and all of said powers and purposes, shall have like powers as are vested
168.32in municipalities with respect to any similar purposes. The exercise of such powers by a
168.33district and all matters pertaining thereto are governed by the law relating to the exercise
169.1of similar powers by municipalities and matters pertaining thereto, so far as applicable,
169.2with like force and effect, except as otherwise provided.

169.3    Sec. 24. [442A.22] ADVISORY COMMITTEE.
169.4A district board of managers may appoint an advisory committee with membership
169.5and duties as the board prescribes.

169.6    Sec. 25. [442A.23] BOARD POWERS.
169.7    Subdivision 1. Generally. The board of managers of every district shall have charge
169.8and control of all the funds, property, and affairs of the district. With respect thereto, the
169.9board has the same powers and duties as are provided by law for a municipality with respect
169.10to similar municipal matters, except as otherwise provided. Except as otherwise provided,
169.11the chair, vice-chair, secretary, and treasurer of the district have the same powers and duties,
169.12respectively, as the mayor, acting mayor, clerk, and treasurer of a municipality. Except as
169.13otherwise provided, the exercise of the powers and the performance of the duties of the
169.14board and officers of the district and all other activities, transactions, and procedures of the
169.15district or any of its officers, agents, or employees, respectively, are governed by the law
169.16relating to similar matters in a municipality, so far as applicable, with like force and effect.
169.17    Subd. 2. Regulation of district. The board may enact ordinances, prescribe
169.18regulations, adopt resolutions, and take other appropriate action relating to any matter
169.19within the powers and purposes of the district and may do and perform all other acts and
169.20things necessary or proper for the effectuation of said powers and the accomplishment
169.21of said purposes. The board may provide that violation of a district ordinance is a penal
169.22offense and may prescribe penalties for violations, not exceeding those prescribed by
169.23law for violation of municipal ordinances.
169.24    Subd. 3. Arrest; prosecution. (a) Violations of district ordinances may be
169.25prosecuted before any court having jurisdiction of misdemeanors. Any peace officer may
169.26make arrests for violations committed anywhere within the district in the same manner as
169.27for violations of city ordinances or for statutory misdemeanors.
169.28(b) All fines collected shall be deposited in the treasury of the district.

169.29    Sec. 26. [442A.24] TAX LEVIES, ASSESSMENTS, AND SERVICE CHARGES.
169.30    Subdivision 1. Tax levies. The board may levy taxes for any district purpose on all
169.31property taxable within the district.
169.32    Subd. 2. Particular area. In the case where a particular area within the district,
169.33but not the entire district, is benefited by a system, works, or facilities of the district,
170.1the board, after holding a public hearing as provided by law for levying assessments on
170.2benefited property, shall by ordinance establish such area as a taxing subdistrict, to be
170.3designated by number, and shall levy special taxes on all the taxable property therein, to be
170.4accounted for separately and used only for the purpose of paying the cost of construction,
170.5improvement, acquisition, maintenance, or operation of such system, works, or facilities,
170.6or paying the principal and interest on bonds issued to provide funds therefor and expenses
170.7incident thereto. The hearing may be held jointly with a hearing for the purpose of levying
170.8assessments on benefited property within the proposed taxing subdistrict.
170.9    Subd. 3. Benefited property. The board shall levy assessments on benefited property
170.10to provide funds for payment of the cost of construction, improvement, or acquisition of
170.11any system, works, or facilities designed or used for any district purpose or for payment of
170.12the principal of and interest on any bonds issued therefor and expenses incident thereto.
170.13    Subd. 4. Service charges. The board shall prescribe service, use, or rental charges
170.14for persons or premises connecting with or making use of any system, works, or facilities
170.15of the district; prescribe the method of payment and collection of the charges; and provide
170.16for the collection thereof for the district by any related governmental subdivision or
170.17other public agency on such terms as may be agreed upon with the governing body or
170.18other authority thereof.

170.19    Sec. 27. [442A.25] BORROWING POWERS; BONDS.
170.20    Subdivision 1. Borrowing power. The board may authorize the borrowing of
170.21money for any district purpose and provide for the repayment thereof, subject to chapter
170.22475. The taxes initially levied by any district according to section 475.61 for the payment
170.23of district bonds, upon property within each municipality included in the district, shall be
170.24included in computing the levy of the municipality.
170.25    Subd. 2. Bond issuance. The board may authorize the issuance of bonds or
170.26obligations of the district to provide funds for the construction, improvement, or
170.27acquisition of any system, works, or facilities for any district purpose or for refunding
170.28any prior bonds or obligations issued for any such purpose and may pledge the full faith
170.29and credit of the district; the proceeds of tax levies or assessments; service, use, or
170.30rental charges; or any combination thereof to the payment of such bonds or obligations
170.31and interest thereon or expenses incident thereto. An election or vote of the people of
170.32the district is required to authorize the issuance of any bonds or obligations. Except as
170.33otherwise provided in this chapter, the forms and procedures for issuing and selling bonds
170.34and provisions for payment thereof must comply with chapter 475.

171.1    Sec. 28. [442A.26] FUNDS; DISTRICT TREASURY.
171.2The proceeds of all tax levies, assessments, service, use, or rental charges, and
171.3other income of the district must be deposited in the district treasury and must be held
171.4and disposed of as the board may direct for district purposes, subject to any pledges or
171.5dedications made by the board for the use of particular funds for the payment of bonds,
171.6interest thereon, or expenses incident thereto or for other specific purposes.

171.7    Sec. 29. [442A.27] EFFECT OF DISTRICT ORDINANCES AND FACILITIES.
171.8In any case where an ordinance is enacted or a regulation adopted by a district
171.9board relating to the same subject matter and applicable in the same area as an existing
171.10ordinance or regulation of a related governmental subdivision for the district, the district
171.11ordinance or regulation, to the extent of its application, supersedes the ordinance or
171.12regulation of the related governmental subdivision. In any case where an area within a
171.13district is served for any district purpose by a system, works, or facilities of the district,
171.14no system, works, or facilities shall be constructed, maintained, or operated for the same
171.15purpose in the same area by any related governmental subdivision or other public agency
171.16except as approved by the district board.

171.17    Sec. 30. [442A.28] APPLICATION.
171.18This chapter does not abridge or supersede any authority of the Minnesota Pollution
171.19Control Agency or the commissioner of health, but is subject and supplementary thereto.
171.20Districts and members of district boards are subject to the authority of the Minnesota
171.21Pollution Control Agency and have no power or authority to abate or control pollution that
171.22is permitted by and in accord with any classification of waters, standards of water quality,
171.23or permit established, fixed, or issued by the Minnesota Pollution Control Agency.

171.24    Sec. 31. [442A.29] CHIEF ADMINISTRATIVE LAW JUDGE'S POWERS.
171.25    Subdivision 1. Alternative dispute resolution. (a) Notwithstanding sections
171.26442A.01 to 442A.28, before assigning a matter to an administrative law judge for hearing,
171.27the chief administrative law judge, upon consultation with affected parties and considering
171.28the procedures and principles established in sections 442A.01 to 442A.28, may require
171.29that disputes over proposed sanitary district creations, attachments, detachments, or
171.30dissolutions be addressed in whole or in part by means of alternative dispute resolution
171.31processes in place of, or in connection with, hearings that would otherwise be required
171.32under sections 442A.01 to 442A.28, including those provided in chapter 14.
172.1(b) In all proceedings, the chief administrative law judge has the authority and
172.2responsibility to conduct hearings and issue final orders related to the hearings under
172.3sections 442A.01 to 442A.28.
172.4    Subd. 2. Cost of proceedings. (a) The parties to any matter directed to alternative
172.5dispute resolution under subdivision 1 must pay the costs of the alternative dispute
172.6resolution process or hearing in the proportions that the parties agree to.
172.7(b) Notwithstanding section 14.53 or other law, the Office of Administrative
172.8Hearings is not liable for the costs.
172.9(c) If the parties do not agree to a division of the costs before the commencement of
172.10mediation, arbitration, or hearing, the costs must be allocated on an equitable basis by
172.11the mediator, arbitrator, or chief administrative law judge.
172.12(d) The chief administrative law judge may contract with the parties to a matter for
172.13the purpose of providing administrative law judges and reporters for an administrative
172.14proceeding or alternative dispute resolution.
172.15(e) The chief administrative law judge shall assess the cost of services rendered by
172.16the Office of Administrative Hearings as provided by section 14.53.
172.17    Subd. 3. Parties. In this section, "party" means:
172.18(1) a property owner, group of property owners, sanitary district, municipality, or
172.19township that files an initiating document or timely objection under this chapter;
172.20(2) the sanitary district, municipality, or township within which the subject area
172.21is located;
172.22(3) a municipality abutting the subject area; and
172.23(4) any other person, group of persons, or governmental agency residing in, owning
172.24property in, or exercising jurisdiction over the subject area that submits a timely request
172.25and is determined by the presiding administrative law judge to have a direct legal interest
172.26that will be affected by the outcome of the proceeding.
172.27    Subd. 4. Effectuation of agreements. Matters resolved or agreed to by the parties
172.28as a result of an alternative dispute resolution process, or otherwise, may be incorporated
172.29into one or more stipulations for purposes of further proceedings according to the
172.30applicable procedures and statutory criteria of this chapter.
172.31    Subd. 5. Limitations on authority. Nothing in this section shall be construed to
172.32permit a sanitary district, municipality, town, or other political subdivision to take, or
172.33agree to take, an action that is not otherwise authorized by this chapter.

172.34    Sec. 32. REPEALER.
173.1Minnesota Statutes 2012, sections 115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, and 10;
173.2115.19; 115.20; 115.21; 115.22; 115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29;
173.3115.30; 115.31; 115.32; 115.33; 115.34; 115.35; 115.36; and 115.37, are repealed.

173.4    Sec. 33. EFFECTIVE DATE.
173.5Unless otherwise provided in this article, sections 1 to 32 are effective August
173.61, 2013."
173.7Delete the title and insert:
173.8"A bill for an act
173.9relating to state government; appropriating money for environment, natural
173.10resources, and agriculture; modifying and providing for disposition of certain
173.11revenue; modifying pesticide control; providing certain fee exemptions;
173.12establishing agricultural water certification program; modifying Minnesota
173.13Noxious Weed Law; providing for biobased and biofuel products; modifying
173.14certain bond requirements; modifying animal waste technician provisions;
173.15making technical changes; modifying certain permit requirements; providing for
173.16federal law compliance; providing for certain easements; modifying all-terrain
173.17vehicle operating provisions; establishing pollinator habitat program; modifying
173.18snowmobile registration provisions; modifying state trails; modifying State
173.19Timber Act; modifying certain park boundaries and expenditures; modifying
173.20reporting requirements; modifying Petroleum Tank Release Cleanup Act;
173.21providing for silica sand mining model standards and technical assistance;
173.22providing for wastewater laboratory certification; providing for product
173.23stewardship program; providing for discontinuance of Hennepin County Soil and
173.24Water Conservation District; authorizing recreation of Hall's Island; providing
173.25for certain interim ordinance extension or renewal; repealing certain pollution
173.26control rules; modifying certain environmental review; modifying Water Law;
173.27modifying public utilities provisions; providing certain criteria for wastewater
173.28treatment systems; providing for sanitary districts; requiring studies and reports;
173.29requiring rulemaking;amending Minnesota Statutes 2012, sections 13.6435, by
173.30adding a subdivision; 13.7411, subdivision 4; 17.03, subdivision 3; 17.1015;
173.3117.118, subdivision 2; 18.77, subdivisions 3, 4, 10, 12; 18.78, subdivision 3;
173.3218.79, subdivisions 6, 13; 18.82, subdivision 1; 18.91, subdivisions 1, 2; 18B.01,
173.33by adding a subdivision; 18B.07, subdivisions 4, 5, 7; 18B.26, subdivision 3;
173.3418B.305; 18B.316, subdivisions 1, 3, 4, 8, 9; 18B.37, subdivision 4; 18C.111,
173.35subdivision 4; 18C.430; 18C.433, subdivision 1; 31.94; 41A.10, subdivision 2,
173.36by adding a subdivision; 41A.105, subdivisions 1a, 3, 5; 41A.12, subdivision
173.373, by adding a subdivision; 41B.04, subdivision 9; 41D.01, subdivision 4;
173.3884.027, by adding a subdivision; 84.415, by adding a subdivision; 84.63; 84.82,
173.39subdivision 3, by adding a subdivision; 84.8205, subdivision 1; 84.922, by
173.40adding a subdivision; 84.9256, subdivision 1; 84.928, subdivision 1; 84D.108,
173.41subdivision 2; 85.015, subdivision 13; 85.052, subdivision 6; 85.053, subdivision
173.428; 85.054, by adding a subdivision; 85.055, subdivisions 1, 2; 85.42; 89.0385;
173.4390.01, subdivisions 4, 5, 6, 8, 11; 90.031, subdivision 4; 90.041, subdivisions
173.442, 5, 6, 9, by adding subdivisions; 90.045; 90.061, subdivision 8; 90.101,
173.45subdivision 1; 90.121; 90.145; 90.151, subdivisions 1, 2, 3, 4, 6, 7, 8, 9;
173.4690.161; 90.162; 90.171; 90.181, subdivision 2; 90.191, subdivision 1; 90.193;
173.4790.195; 90.201, subdivision 2a; 90.211; 90.221; 90.252, subdivision 1; 90.301,
173.48subdivisions 2, 4; 90.41, subdivision 1; 93.46, by adding a subdivision; 93.481,
173.49subdivision 3; 97A.401, subdivision 3; 103G.265, subdivisions 2, 3; 103G.271,
173.50subdivisions 1, 4; 103G.287, subdivisions 1, 4, 5; 103I.205, subdivision 1;
173.51114D.50, subdivision 4; 115A.1320, subdivision 1; 115B.20, subdivision
173.526; 115B.28, subdivision 1; 115B.421; 115C.02, subdivision 4; 115C.08,
174.1subdivision 4, by adding a subdivision; 115D.10; 116.48, subdivision 6; 116C.03,
174.2subdivisions 2, 4, 5; 116D.04, by adding a subdivision; 116J.437, subdivision 1;
174.3223.17, by adding a subdivision; 232.22, by adding a subdivision; 239.051, by
174.4adding subdivisions; 239.761, subdivision 3; 239.791, subdivisions 1, 2a, 2b;
174.5239.7911; 275.066; 282.04, subdivision 1; 296A.01, by adding a subdivision;
174.6473.846; 583.215; Laws 2010, chapter 215, article 3, section 3, subdivision 6,
174.7as amended; Laws 2010, chapter 361, article 3, section 7; proposing coding for
174.8new law in Minnesota Statutes, chapters 17; 18; 84; 90; 93; 103G; 115; 115A;
174.9116C; 383B; proposing coding for new law as Minnesota Statutes, chapter 442A;
174.10repealing Minnesota Statutes 2012, sections 18.91, subdivisions 3, 5; 18B.07,
174.11subdivision 6; 90.163; 90.173; 90.41, subdivision 2; 103G.265, subdivision 2a;
174.12115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10; 115.19; 115.20; 115.21; 115.22;
174.13115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29; 115.30; 115.31; 115.32;
174.14115.33; 115.34; 115.35; 115.36; 115.37; 239.791, subdivision 1a; Laws 2011,
174.15First Special Session chapter 2, article 4, section 30; Minnesota Rules, parts
174.167021.0010, subparts 1, 2, 4, 5; 7021.0020; 7021.0030; 7021.0040; 7021.0050,
174.17subpart 5; 9210.0300; 9210.0310; 9210.0320; 9210.0330; 9210.0340; 9210.0350;
174.189210.0360; 9210.0370; 9210.0380; 9220.0530, subpart 6."
175.1
We request the adoption of this report and repassage of the bill.
175.2
House Conferees:
175.3
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.....
175.4
Jean Wagenius
David Dill
175.5
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175.6
Jeanne Poppe
Rick Hansen
175.7
.....
175.8
Andrew Falk
175.9
Senate Conferees:
175.10
.....
.....
175.11
David J. Tomassoni
Tom Saxhaug
175.12
.....
.....
175.13
Dan Sparks
James P. Metzen
175.14
.....
175.15
Torrey N. Westrom

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569