Minnesota Office of the Revisor of Statutes
[*Add Subtitle/link: Office]

Menu

Revisor of Statutes Menu

HF 976

3rd Engrossment - 88th Legislature (2013 - 2014) Posted on 04/25/2013 11:07am

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

Pdf

Version List Authors and Status

1.1A bill for an act
1.2relating to state government; appropriating money for environment, natural
1.3resources, and agriculture; modifying and providing for certain fees; modifying
1.4and providing for disposition of certain revenue; creating accounts; modifying
1.5payment of certain costs; modifying grant programs; providing for agricultural
1.6water quality certification; modifying Minnesota Noxious Weed Law; modifying
1.7pesticide control; modifying animal waste technician provisions; modifying
1.8certain renewable energy and biofuel provisions; modifying bonding requirements
1.9for grain buyers and grain storage; making technical changes; modifying certain
1.10permit requirements; providing for federal law compliance; providing for certain
1.11easements; establishing pollinator habitat program; modifying state trails;
1.12modifying all-terrain vehicle operating provisions; modifying State Timber
1.13Act; modifying water use requirements; modifying certain park boundaries;
1.14modifying reporting requirements; modifying Petroleum Tank Release Cleanup
1.15Act; providing for silica sand mining model standards and technical assistance;
1.16establishing criteria for wastewater treatment system projects; providing for
1.17wastewater laboratory certification; providing for product stewardship programs;
1.18modifying Minnesota Power Plant Siting Act; providing for sanitary districts;
1.19requiring groundwater sustainability recommendations; requiring rulemaking;
1.20amending Minnesota Statutes 2012, sections 17.03, subdivision 3; 17.1015;
1.2117.118, subdivision 2; 18.77, subdivisions 3, 4, 10, 12; 18.78, subdivision 3;
1.2218.79, subdivisions 6, 13; 18.82, subdivision 1; 18.91, subdivisions 1, 2; 18B.01,
1.23by adding a subdivision; 18B.065, subdivision 2a; 18B.07, subdivisions 4, 5, 7;
1.2418B.26, subdivision 3; 18B.305; 18B.316, subdivisions 1, 3, 4, 8, 9; 18B.37,
1.25subdivision 4; 18C.430; 18C.433, subdivision 1; 31.94; 41A.10, subdivision 2,
1.26by adding a subdivision; 41A.105, subdivisions 1a, 3, 5; 41A.12, by adding a
1.27subdivision; 41B.04, subdivision 9; 41D.01, subdivision 4; 84.027, by adding a
1.28subdivision; 84.82, by adding a subdivision; 84.922, by adding a subdivision;
1.2984.9256, subdivision 1; 84.928, subdivision 1; 84D.108, subdivision 2; 85.015,
1.30subdivision 13; 85.052, subdivision 6; 85.054, by adding a subdivision; 85.055,
1.31subdivisions 1, 2; 85.42; 89.0385; 89.17; 90.01, subdivisions 4, 5, 6, 8, 11;
1.3290.031, subdivision 4; 90.041, subdivisions 2, 5, 6, 9, by adding subdivisions;
1.3390.045; 90.061, subdivision 8; 90.101, subdivision 1; 90.121; 90.145; 90.151,
1.34subdivisions 1, 2, 3, 4, 6, 7, 8, 9; 90.161; 90.162; 90.171; 90.181, subdivision 2;
1.3590.191, subdivision 1; 90.193; 90.195; 90.201, subdivision 2a; 90.211; 90.221;
1.3690.252, subdivision 1; 90.301, subdivisions 2, 4; 90.41, subdivision 1; 92.50;
1.3793.17, subdivision 1; 93.1925, subdivision 2; 93.25, subdivision 2; 93.285,
1.38subdivision 3; 93.46, by adding a subdivision; 93.481, subdivisions 3, 5, by
1.39adding subdivisions; 93.482; 97A.401, subdivision 3; 103G.265, subdivisions
2.12, 3; 103G.271, subdivisions 1, 4, 6; 103G.282; 103G.287, subdivisions 1,
2.24, 5; 103G.615, subdivision 2; 103I.205, subdivision 1; 103I.601, by adding
2.3a subdivision; 114D.50, subdivision 4; 115A.1320, subdivision 1; 115B.20,
2.4subdivision 6; 115B.28, subdivision 1; 115C.02, subdivision 4; 115C.08,
2.5subdivision 4, by adding a subdivision; 115D.10; 116.48, subdivision 6; 116C.03,
2.6subdivisions 2, 4, 5; 116D.04, by adding a subdivision; 116J.437, subdivision
2.71; 168.1296, subdivision 1; 216E.12, subdivision 4; 223.17, by adding a
2.8subdivision; 232.22, by adding a subdivision; 239.051, by adding subdivisions;
2.9239.791, subdivisions 1, 2a, 2b; 239.7911; 275.066; 296A.01, subdivision 19, by
2.10adding a subdivision; 473.846; Laws 2012, chapter 249, section 11; proposing
2.11coding for new law in Minnesota Statutes, chapters 17; 18; 84; 90; 93; 115;
2.12115A; 116C; proposing coding for new law as Minnesota Statutes, chapter 442A;
2.13repealing Minnesota Statutes 2012, sections 18.91, subdivisions 3, 5; 18B.07,
2.14subdivision 6; 90.163; 90.173; 90.41, subdivision 2; 103G.265, subdivision 2a;
2.15115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10; 115.19; 115.20; 115.21; 115.22;
2.16115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29; 115.30; 115.31; 115.32;
2.17115.33; 115.34; 115.35; 115.36; 115.37; 239.791, subdivision 1a; Minnesota
2.18Rules, parts 7021.0010, subparts 1, 2, 4, 5; 7021.0020; 7021.0030; 7021.0040;
2.197021.0050, subpart 5; 9210.0300; 9210.0310; 9210.0320; 9210.0330; 9210.0340;
2.209210.0350; 9210.0360; 9210.0370; 9210.0380; 9220.0530, subpart 6.
2.21BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.22ARTICLE 1
2.23AGRICULTURE APPROPRIATIONS

2.24
Section 1. SUMMARY OF APPROPRIATIONS.
2.25The amounts shown in this section summarize direct appropriations, by fund, made
2.26in this article.
2.27
2014
2015
Total
2.28
General
$
39,504,000
$
39,646,000
$
79,150,000
2.29
Agricultural
$
1,240,000
$
1,240,000
$
2,480,000
2.30
Remediation
$
388,000
$
388,000
$
776,000
2.31
Total
$
41,132,000
$
41,274,000
$
82,406,000

2.32
Sec. 2. AGRICULTURE APPROPRIATIONS.
2.33The sums shown in the columns marked "Appropriations" are appropriated to the
2.34agencies and for the purposes specified in this article. The appropriations are from the
2.35general fund, or another named fund, and are available for the fiscal years indicated
2.36for each purpose. The figures "2014" and "2015" used in this article mean that the
2.37appropriations listed under them are available for the fiscal year ending June 30, 2014, or
2.38June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
2.39year 2015. "The biennium" is fiscal years 2014 and 2015.
2.40
APPROPRIATIONS
2.41
Available for the Year
3.1
Ending June 30
3.2
2014
2015

3.3
Sec. 3. DEPARTMENT OF AGRICULTURE.
3.4
Subdivision 1.Total Appropriation
$
33,620,000
$
33,730,000
3.5
Appropriations by Fund
3.6
2014
2015
3.7
General
31,992,000
32,102,000
3.8
Agricultural
1,240,000
1,240,000
3.9
Remediation
388,000
388,000
3.10The amounts that may be spent for each
3.11purpose are specified in the following
3.12subdivisions.
3.13
Subd. 2.Protection Services
12,883,000
12,883,000
3.14
Appropriations by Fund
3.15
2014
2015
3.16
General
12,055,000
12,055,000
3.17
Agricultural
440,000
440,000
3.18
Remediation
388,000
388,000
3.19$388,000 the first year and $388,000 the
3.20second year are from the remediation fund
3.21for administrative funding for the voluntary
3.22cleanup program.
3.23$75,000 the first year and $75,000 the second
3.24year are for compensation for destroyed or
3.25crippled animals under Minnesota Statutes,
3.26section 3.737. If the amount in the first year
3.27is insufficient, the amount in the second year
3.28is available in the first year.
3.29$75,000 the first year and $75,000 the second
3.30year are for compensation for crop damage
3.31under Minnesota Statutes, section 3.7371. If
3.32the amount in the first year is insufficient, the
3.33amount in the second year is available in the
3.34first year.
4.1If the commissioner determines that claims
4.2made under Minnesota Statutes, section
4.33.737 or 3.7371, are unusually high, amounts
4.4appropriated for either program may be
4.5transferred to the appropriation for the other
4.6program.
4.7$225,000 the first year and $225,000 the
4.8second year are for an increase in retail food
4.9handler inspections.
4.10$25,000 the first year and $25,000 the second
4.11year are for training manuals for licensure
4.12related to commercial manure application.
4.13$245,000 the first year and $245,000 the
4.14second year are for an increase in the
4.15operating budget for the Laboratory Services
4.16Division.
4.17The commissioner may spend up to $10,000
4.18of the amount appropriated each year under
4.19this subdivision to administer the agricultural
4.20water quality certification program.
4.21Notwithstanding Minnesota Statutes, section
4.2218B.05, $90,000 the first year and $90,000
4.23the second year are from the pesticide
4.24regulatory account in the agricultural fund
4.25for an increase in the operating budget for
4.26the Laboratory Services Division.
4.27Notwithstanding Minnesota Statutes, section
4.2818B.05, $100,000 the first year and $100,000
4.29the second year are from the pesticide
4.30regulatory account in the agricultural fund to
4.31update and modify applicator education and
4.32training materials. No later than January 15,
4.332015, the commissioner must report to the
4.34legislative committees with jurisdiction over
4.35agriculture finance regarding the agency's
5.1progress and a schedule of activities the
5.2commissioner will accomplish to update and
5.3modify additional materials by December
5.431, 2017.
5.5Notwithstanding Minnesota Statutes, section
5.618B.05, $100,000 the first year and $100,000
5.7the second year are from the pesticide
5.8regulatory account in the agricultural fund to
5.9monitor pesticides and pesticide degradates
5.10in surface water and groundwater in areas
5.11vulnerable to surface water impairments and
5.12groundwater degradation and to use data
5.13collected to improve pesticide use practices.
5.14This is a onetime appropriation.
5.15Notwithstanding Minnesota Statutes, section
5.1618B.05, $150,000 the first year and $150,000
5.17the second year are from the pesticide
5.18regulatory account in the agricultural fund
5.19for transfer to the commissioner of natural
5.20resources for pollinator habitat restoration
5.21that is visible to the public, along state trails,
5.22and located in various parts of the state and
5.23that includes an appropriate diversity of
5.24native species selected to provide habitat for
5.25pollinators throughout the growing season.
5.26The commissioner of natural resources may
5.27use up to $25,000 each year for pollinator
5.28habitat signage and public awareness. This is
5.29a onetime appropriation.
5.30
5.31
Subd. 3.Agricultural Marketing and
Development
3,152,000
3,152,000
5.32$186,000 the first year and $186,000 the
5.33second year are for transfer to the Minnesota
5.34grown account and may be used as grants
5.35for Minnesota grown promotion under
5.36Minnesota Statutes, section 17.102. Grants
6.1may be made for one year. Notwithstanding
6.2Minnesota Statutes, section 16A.28, the
6.3appropriations encumbered under contract
6.4on or before June 30, 2015, for Minnesota
6.5grown grants in this paragraph are available
6.6until June 30, 2017.
6.7$190,000 the first year and $190,000 the
6.8second year are for grants to farmers for
6.9demonstration projects involving sustainable
6.10agriculture as authorized in Minnesota
6.11Statutes, section 17.116, and for grants
6.12to small or transitioning farmers. Of the
6.13amount for grants, up to $20,000 may be
6.14used for dissemination of information about
6.15demonstration projects. Notwithstanding
6.16Minnesota Statutes, section 16A.28, the
6.17appropriations encumbered under contract
6.18on or before June 30, 2015, for sustainable
6.19agriculture grants in this paragraph are
6.20available until June 30, 2017.
6.21The commissioner may use funds
6.22appropriated in this subdivision for annual
6.23cost-share payments to resident farmers
6.24or entities that sell, process, or package
6.25agricultural products in this state for the costs
6.26of organic certification. Annual cost-share
6.27payments must be two-thirds of the cost of
6.28the certification or $350, whichever is less.
6.29A certified organic operation is eligible to
6.30receive annual cost-share payments for up to
6.31five years. In any year when federal organic
6.32cost-share program funds are available or
6.33when there is any excess appropriation in
6.34either fiscal year, the commissioner may
6.35allocate these funds for organic market and
6.36program development, including organic
7.1producer education efforts, assistance for
7.2persons transitioning from conventional
7.3to organic agriculture, or sustainable
7.4agriculture demonstration grants authorized
7.5under Minnesota Statutes, section 17.116,
7.6and pertaining to organic research or
7.7demonstration. Any unencumbered balance
7.8does not cancel at the end of the first year
7.9and is available for the second year.
7.10The commissioner may spend up to $25,000
7.11of the amount appropriated each year
7.12under this subdivision for pollinator habitat
7.13education and outreach efforts.
7.14
7.15
Subd. 4.Bioenergy and Value-Added
Agriculture
10,235,000
10,235,000
7.16$10,235,000 the first year and $10,235,000
7.17the second year are for the agricultural
7.18growth, research, and innovation program
7.19in Minnesota Statutes, section 41A.12.
7.20The commissioner shall consider creating
7.21a competitive grant program for small
7.22renewable energy projects for rural residents.
7.23No later than February 1, 2014, and February
7.241, 2015, the commissioner must report to
7.25the legislative committees with jurisdiction
7.26over agriculture policy and finance regarding
7.27the commissioner's accomplishments and
7.28anticipated accomplishments in the following
7.29areas: developing new markets for Minnesota
7.30farmers by providing more fruits and
7.31vegetables for Minnesota school children;
7.32facilitating the start-up, modernization,
7.33or expansion of livestock operations
7.34including beginning and transitioning
7.35livestock operations; facilitating the start-up,
7.36modernization, or expansion of other
8.1beginning and transitioning farms; research
8.2on conventional and cover crops; and biofuel
8.3and other renewable energy development
8.4including small renewable energy projects
8.5for rural residents.
8.6The commissioner may use up to 4.5 percent
8.7of this appropriation for costs incurred to
8.8administer the program. Any unencumbered
8.9balance does not cancel at the end of the first
8.10year and is available for the second year.
8.11Notwithstanding Minnesota Statutes, section
8.1216A.28, the appropriations encumbered
8.13under contract on or before June 30, 2015, for
8.14agricultural growth, research, and innovation
8.15grants in this subdivision are available until
8.16June 30, 2017.
8.17Funds in this appropriation may be used
8.18for bioenergy grants. The NextGen
8.19Energy Board, established in Minnesota
8.20Statutes, section 41A.105, shall make
8.21recommendations to the commissioner on
8.22grants for owners of Minnesota facilities
8.23producing bioenergy; for organizations that
8.24provide for on-station, on-farm field scale
8.25research and outreach to develop and test
8.26the agronomic and economic requirements
8.27of diverse stands of prairie plants and other
8.28perennials for bioenergy systems; or for
8.29certain nongovernmental entities. For the
8.30purposes of this paragraph, "bioenergy"
8.31includes transportation fuels derived from
8.32cellulosic material, as well as the generation
8.33of energy for commercial heat, industrial
8.34process heat, or electrical power from
8.35cellulosic materials via gasification or
8.36other processes. Grants are limited to 50
9.1percent of the cost of research, technical
9.2assistance, or equipment related to bioenergy
9.3production or $500,000, whichever is less.
9.4Grants to nongovernmental entities for the
9.5development of business plans and structures
9.6related to community ownership of eligible
9.7bioenergy facilities together may not exceed
9.8$150,000. The board shall make a good-faith
9.9effort to select projects that have merit and,
9.10when taken together, represent a variety of
9.11bioenergy technologies, biomass feedstocks,
9.12and geographic regions of the state. Projects
9.13must have a qualified engineer provide
9.14certification on the technology and fuel
9.15source. Grantees must provide reports at
9.16the request of the commissioner. No later
9.17than February 1, 2014, and February 1,
9.182015, the commissioner shall report on the
9.19projects funded under this appropriation to
9.20the legislative committees with jurisdiction
9.21over agriculture policy and finance.
9.22
9.23
Subd. 5.Administration and Financial
Assistance
7,350,000
7,460,000
9.24
Appropriations by Fund
9.25
2014
2015
9.26
General
6,550,000
6,660,000
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
9.36may allocate the available sums among
10.1permissible activities, including efforts to
10.2improve the quality of milk produced in the
10.3state in the proportions that the commissioner
10.4deems most beneficial to Minnesota's
10.5dairy farmers. The commissioner must
10.6submit a detailed accomplishment report
10.7and a work plan detailing future plans for,
10.8and anticipated accomplishments from,
10.9expenditures under this program to the
10.10chairs and ranking minority members of the
10.11legislative committees with jurisdiction over
10.12agricultural policy and finance on or before
10.13the start of each fiscal year. If significant
10.14changes are made to the plans in the course
10.15of the year, the commissioner must notify the
10.16chairs and ranking minority members.
10.17$47,000 the first year and $47,000 the second
10.18year are for the Northern Crops Institute.
10.19These appropriations may be spent to
10.20purchase equipment.
10.21$18,000 the first year and $18,000 the
10.22second year are for a grant to the Minnesota
10.23Livestock Breeders' Association.
10.24$235,000 the first year and $235,000 the
10.25second year are for grants to the Minnesota
10.26Agriculture Education Leadership Council
10.27for programs of the council under Minnesota
10.28Statutes, chapter 41D.
10.29$474,000 the first year and $474,000 the
10.30second year are for payments to county and
10.31district agricultural societies and associations
10.32under Minnesota Statutes, section 38.02,
10.33subdivision 1. Aid payments to county and
10.34district agricultural societies and associations
10.35shall be disbursed no later than July 15 of
11.1each year. These payments are the amount of
11.2aid from the state for an annual fair held in
11.3the previous calendar year.
11.4$1,000 the first year and $1,000 the second
11.5year are for grants to the Minnesota State
11.6Poultry Association.
11.7$108,000 the first year and $108,000 the
11.8second year are for annual grants to the
11.9Minnesota Turf Seed Council for basic
11.10and applied research on: (1) the improved
11.11production of forage and turf seed related to
11.12new and improved varieties; and (2) native
11.13plants, including plant breeding, nutrient
11.14management, pest management, disease
11.15management, yield, and viability. The grant
11.16recipient may subcontract with a qualified
11.17third party for some or all of the basic or
11.18applied research.
11.19$500,000 the first year and $500,000 the
11.20second year are for grants to Second Harvest
11.21Heartland on behalf of Minnesota's six
11.22Second Harvest food banks for the purchase
11.23of milk for distribution to Minnesota's food
11.24shelves and other charitable organizations
11.25that are eligible to receive food from the food
11.26banks. Milk purchased under the grants must
11.27be acquired from Minnesota milk processors
11.28and based on low-cost bids. The milk must be
11.29allocated to each Second Harvest food bank
11.30serving Minnesota according to the formula
11.31used in the distribution of United States
11.32Department of Agriculture commodities
11.33under The Emergency Food Assistance
11.34Program (TEFAP). Second Harvest
11.35Heartland must submit quarterly reports
12.1to the commissioner on forms prescribed
12.2by the commissioner. The reports must
12.3include, but are not limited to, information
12.4on the expenditure of funds, the amount
12.5of milk purchased, and the organizations
12.6to which the milk was distributed. Second
12.7Harvest Heartland may enter into contracts
12.8or agreements with food banks for shared
12.9funding or reimbursement of the direct
12.10purchase of milk. Each food bank receiving
12.11money from this appropriation may use up to
12.12two percent of the grant for administrative
12.13expenses.
12.14$94,000 the first year and $94,000 the
12.15second year are for transfer to the Board of
12.16Trustees of the Minnesota State Colleges
12.17and Universities for statewide mental health
12.18counseling support to farm families and
12.19business operators through farm business
12.20management programs at Central Lakes
12.21College and Ridgewater College.
12.22$17,000 the first year and $17,000 the second
12.23year are for grants to the Minnesota State
12.24Horticultural Society.
12.25Notwithstanding Minnesota Statutes,
12.26section 18C.131, $800,000 the first year
12.27and $800,000 the second year are from
12.28the fertilizer inspection account in the
12.29agricultural fund for grants for fertilizer
12.30research as awarded by the Minnesota
12.31Agricultural Fertilizer Research and
12.32Education Council under Minnesota Statutes,
12.33section 18C.71. The amount appropriated in
12.34either fiscal year must not exceed 57 percent
12.35of the inspection fee revenue collected
13.1under Minnesota Statutes, section 18C.425,
13.2subdivision 6, during the previous fiscal
13.3year. No later than February 1, 2015, the
13.4commissioner shall report to the legislative
13.5committees with jurisdiction over agriculture
13.6finance. The report must include the progress
13.7and outcome of funded projects as well as
13.8the sentiment of the council concerning the
13.9need for additional research funds.

13.10
Sec. 4. BOARD OF ANIMAL HEALTH
$
4,869,000
$
4,901,000

13.11
13.12
Sec. 5. AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE
$
2,643,000
$
2,643,000
13.13Money in this appropriation is available for
13.14technical assistance and technology transfer
13.15to bioenergy crop producers and users.

13.16ARTICLE 2
13.17AGRICULTURE POLICY

13.18    Section 1. Minnesota Statutes 2012, section 17.03, subdivision 3, is amended to read:
13.19    Subd. 3. Cooperation with federal agencies. (a) The commissioner shall cooperate
13.20with the government of the United States, with financial agencies created to assist in the
13.21development of the agricultural resources of this state, and so far as practicable may use
13.22the facilities provided by the existing state departments and the various state and local
13.23organizations. This subdivision is intended to relate to every function and duty which
13.24devolves upon the commissioner.
13.25    (b) The commissioner may apply for, receive, and disburse federal funds made
13.26available to the state by federal law or regulation for any purpose related to the powers and
13.27duties of the commissioner. All money received by the commissioner under this paragraph
13.28shall be deposited in the state treasury and is appropriated to the commissioner for the
13.29purposes for which it was received. Money made available under this paragraph may
13.30be paid pursuant to applicable federal regulations and rate structures. Money received
13.31under this paragraph does not cancel and is available for expenditure according to federal
13.32law. The commissioner may contract with and enter into grant agreements with persons,
13.33organizations, educational institutions, firms, corporations, other state agencies, and any
14.1agency or instrumentality of the federal government to carry out agreements made with
14.2the federal government relating to the expenditure of money under this paragraph. Bid
14.3requirements under chapter 16C do not apply to contracts under this paragraph.

14.4    Sec. 2. Minnesota Statutes 2012, section 17.1015, is amended to read:
14.517.1015 PROMOTIONAL EXPENDITURES.
14.6In order to accomplish the purposes of section 17.101, the commissioner may
14.7participate jointly with private persons in appropriate programs and projects and may enter
14.8into contracts to carry out those programs and projects. The contracts may not include
14.9the acquisition of land or buildings and are not subject to the provisions of chapter 16C
14.10relating to competitive bidding.
14.11The commissioner may spend money appropriated for the purposes of section
14.1217.101 in the same manner that private persons, firms, corporations, and associations
14.13make expenditures for these purposes, and expenditures made pursuant to section 17.101
14.14for food, lodging, or travel are not governed by the travel rules of the commissioner of
14.15management and budget.

14.16    Sec. 3. Minnesota Statutes 2012, section 17.118, subdivision 2, is amended to read:
14.17    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this
14.18subdivision have the meanings given them.
14.19    (b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed
14.20cervidae, ratitae, bison, sheep, horses, and llamas.
14.21    (c) "Qualifying expenditures" means the amount spent for:
14.22    (1) the acquisition, construction, or improvement of buildings or facilities for the
14.23production of livestock or livestock products;
14.24    (2) the development of pasture for use by livestock including, but not limited to, the
14.25acquisition, development, or improvement of:
14.26    (i) lanes used by livestock that connect pastures to a central location;
14.27    (ii) watering systems for livestock on pasture including water lines, booster pumps,
14.28and well installations;
14.29    (iii) livestock stream crossing stabilization; and
14.30    (iv) fences; or
14.31    (3) the acquisition of equipment for livestock housing, confinement, feeding, and
14.32waste management including, but not limited to, the following:
14.33    (i) freestall barns;
14.34    (ii) watering facilities;
15.1    (iii) feed storage and handling equipment;
15.2    (iv) milking parlors;
15.3    (v) robotic equipment;
15.4    (vi) scales;
15.5    (vii) milk storage and cooling facilities;
15.6    (viii) bulk tanks;
15.7    (ix) computer hardware and software and associated equipment used to monitor
15.8the productivity and feeding of livestock;
15.9    (x) manure pumping and storage facilities;
15.10    (xi) swine farrowing facilities;
15.11    (xii) swine and cattle finishing barns;
15.12    (xiii) calving facilities;
15.13    (xiv) digesters;
15.14    (xv) equipment used to produce energy;
15.15    (xvi) on-farm processing facilities equipment;
15.16    (xvii) fences; and
15.17    (xviii) livestock pens and corrals and sorting, restraining, and loading chutes.
15.18    Except for qualifying pasture development expenditures under clause (2), qualifying
15.19expenditures only include amounts that are allowed to be capitalized and deducted under
15.20either section 167 or 179 of the Internal Revenue Code in computing federal taxable
15.21income. Qualifying expenditures do not include an amount paid to refinance existing debt.
15.22    (d) "Qualifying period" means, for a grant awarded during a fiscal year, that full
15.23calendar year of which the first six months precede the first day of the current fiscal year. For
15.24example, an eligible person who makes qualifying expenditures during calendar year 2008
15.25is eligible to receive a livestock investment grant between July 1, 2008, and June 30, 2009.

15.26    Sec. 4. [17.9891] PURPOSE.
15.27The commissioner, in consultation with the commissioner of natural resources,
15.28commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
15.29may implement a Minnesota agricultural water quality certification program whereby a
15.30producer who demonstrates practices and management sufficient to protect water quality
15.31is certified for up to ten years and presumed to be contributing the producer's share of
15.32any targeted reduction of water pollutants during the certification period. The program
15.33is voluntary. The program will first be piloted in selected watersheds across the state,
15.34until such time as the commissioner, in consultation with the commissioner of natural
16.1resources, commissioner of the Pollution Control Agency, and Board of Water and Soil
16.2Resources, determines the program is ready for expansion.

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

16.25    Sec. 6. [17.9893] CERTIFICATION INSTRUMENT.
16.26The commissioner, in consultation with the commissioner of natural resources,
16.27commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
16.28shall develop an analytical instrument to assess the water quality practices and
16.29management of agricultural operations. This instrument shall be used to certify that the
16.30water quality practices and management of an agricultural operation are consistent with
16.31state water quality goals and standards. The commissioner shall define a satisfactory score
16.32for certification purposes. The certification instrument tool shall:
16.33(1) integrate applicable existing regulatory requirements;
16.34(2) utilize technology and prioritize ease of use;
17.1(3) utilize a water quality index or score applicable to the landscape;
17.2(4) incorporate a process for updates and revisions as practices, management, and
17.3technology changes become established and approved; and
17.4(5) comprehensively address water quality impacts.

17.5    Sec. 7. [17.9894] CERTIFYING AGENT LICENSE.
17.6    Subdivision 1. License. A person who offers certification services to producers
17.7as part of the program must satisfy all criteria in subdivision 2 and be licensed by
17.8the commissioner. A certifying agent is ineligible to provide certification services
17.9to any producer to whom the certifying agent has also provided technical assistance.
17.10Notwithstanding section 16A.1283, the commissioner may set license fees.
17.11    Subd. 2. Certifying agent requirements. In order to be licensed as a certifying
17.12agent, a person must:
17.13(1) be an agricultural conservation professional employed by the state of Minnesota,
17.14a soil and water conservation district, or the Natural Resources Conservation Service or a
17.15Minnesota certified crop advisor as recognized by the American Society of Agronomy;
17.16(2) have passed a comprehensive exam, as set by the commissioner, evaluating
17.17knowledge of water quality, soil health, best farm management techniques, and the
17.18certification instrument; and
17.19(3) maintain continuing education requirements as set by the commissioner.

17.20    Sec. 8. [17.9895] DUTIES OF A CERTIFYING AGENT.
17.21    Subdivision 1. Duties. A certifying agent shall conduct a formal certification
17.22assessment utilizing the certification instrument to determine whether a producer meets
17.23program criteria. If a producer satisfies all requirements, the certifying agent shall notify
17.24the commissioner of the producer's eligibility and request that the commissioner issue a
17.25certificate. All records and documents used in the assessment shall be compiled by the
17.26certifying agent and submitted to the commissioner.
17.27    Subd. 2. Violations. (a) In the event a certifying agent violates any provision of
17.28sections 17.9891 to 17.993 or an order of the commissioner, the commissioner may issue a
17.29written warning or a correction order and may suspend or revoke a license.
17.30(b) If the commissioner suspends or revokes a license, the certifying agent has ten
17.31days from the date of suspension or revocation to appeal. If a certifying agent appeals, the
17.32commissioner shall hold an administrative hearing within 30 days of the suspension or
17.33revocation of the license, or longer by agreement of the parties, to determine whether the
17.34license is revoked or suspended. The commissioner shall issue an opinion within 30 days.
18.1If a person notifies the commissioner that the person intends to contest the commissioner's
18.2opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with
18.3the applicable provisions of chapter 14 for hearings in contested cases.

18.4    Sec. 9. [17.9896] CERTIFICATION PROCEDURES.
18.5    Subdivision 1. Producer duties. A producer who seeks certification of eligible land
18.6shall conduct an initial assessment using the certification instrument, obtain technical
18.7assistance if necessary to achieve a satisfactory score on the certification instrument, and
18.8apply for certification from a licensed certifying agent.
18.9    Subd. 2. Additional land. Once certified, if a producer obtains effective control
18.10of additional agricultural land, the producer must notify a certifying agent and obtain
18.11certification of the additional land within one year in order to retain the producer's original
18.12certification.
18.13    Subd. 3. Violations. (a) The commissioner may revoke a certification if the
18.14producer fails to obtain certification on any additional land for which the producer obtains
18.15effective control.
18.16(b) The commissioner may revoke a certification and seek reimbursement of any
18.17monetary benefit a producer may have received due to certification from a producer who
18.18fails to maintain certification criteria.
18.19(c) If the commissioner revokes a certification, the producer has ten days from the
18.20date of suspension or revocation to appeal. If a producer appeals, the commissioner shall
18.21hold an administrative hearing within 30 days of the suspension or revocation of the
18.22certification, or longer by agreement of the parties, to determine whether the certification
18.23is revoked or suspended. The commissioner shall issue an opinion within 30 days. If the
18.24producer notifies the commissioner that the producer intends to contest the commissioner's
18.25opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with
18.26the applicable provisions of chapter 14 for hearings in contested cases.

18.27    Sec. 10. [17.9897] CERTIFICATION CERTAINTY.
18.28(a) Once a producer is certified, the producer:
18.29(1) retains certification for up to ten years from the date of certification if the
18.30producer complies with the certification agreement, even if the producer does not comply
18.31with new state water protection laws or rules that take effect during the certification period;
18.32(2) is presumed to be meeting the producer's contribution to any targeted reduction
18.33of pollutants during the certification period;
19.1(3) is required to continue implementation of practices that maintain the producer's
19.2certification; and
19.3(4) is required to retain all records pertaining to certification.
19.4(b) Paragraph (a) does not preclude enforcement of a local rule or ordinance by a
19.5local unit of government.

19.6    Sec. 11. [17.9898] AUDITS.
19.7The commissioner shall perform random audits of producers and certifying agents to
19.8ensure compliance with the program. All producers and certifying agents shall cooperate
19.9with the commissioner during these audits, and provide all relevant documents to the
19.10commissioner for inspection and copying. Any delay, obstruction, or refusal to cooperate
19.11with the commissioner's audit or falsification of or failure to provide required data or
19.12information is a violation subject to the provisions of section 17.9895, subdivision 2, or
19.1317.9896, subdivision 3.

19.14    Sec. 12. [17.9899] DATA.
19.15All data collected under the program that identifies a producer or a producer's
19.16location are considered nonpublic data as defined in section 13.02, subdivision 9, or
19.17private data on individuals as defined in section 13.02, subdivision 12. The commissioner
19.18shall make available summary data of program outcomes on data classified as private
19.19or nonpublic under this section.

19.20    Sec. 13. [17.991] RULEMAKING.
19.21The commissioner may adopt rules to implement the program.

19.22    Sec. 14. [17.992] REPORTS.
19.23The commissioner, in consultation with the commissioner of natural resources,
19.24commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
19.25shall issue a biennial report to the chairs and ranking minority members of the legislative
19.26committees with jurisdiction over agricultural policy on the status of the program.

19.27    Sec. 15. [17.993] FINANCIAL ASSISTANCE.
19.28The commissioner may use contributions from gifts or other state accounts, provided
19.29that the purpose of the expenditure is consistent with the purpose of the accounts, for
19.30grants, loans, or other financial assistance.

20.1    Sec. 16. Minnesota Statutes 2012, section 18.77, subdivision 3, is amended to read:
20.2    Subd. 3. Control. "Control" means to destroy all or part of the aboveground
20.3growth of noxious weeds manage or prevent the maturation and spread of propagating
20.4parts of noxious weeds from one area to another by a lawful method that does not cause
20.5unreasonable adverse effects on the environment as defined in section 18B.01, subdivision
20.631
, and prevents the maturation and spread of noxious weed propagating parts from one
20.7area to another.

20.8    Sec. 17. Minnesota Statutes 2012, section 18.77, subdivision 4, is amended to read:
20.9    Subd. 4. Eradicate. "Eradicate" means to destroy the aboveground growth and the
20.10roots and belowground plant parts of noxious weeds by a lawful method that, which
20.11 prevents the maturation and spread of noxious weed propagating parts from one area
20.12to another.

20.13    Sec. 18. Minnesota Statutes 2012, section 18.77, subdivision 10, is amended to read:
20.14    Subd. 10. Permanent pasture, hay meadow, woodlot, and or other noncrop
20.15area. "Permanent pasture, hay meadow, woodlot, and or other noncrop area" means an
20.16area of predominantly native or seeded perennial plants that can be used for grazing or hay
20.17purposes but is not harvested on a regular basis and is not considered to be a growing crop.

20.18    Sec. 19. Minnesota Statutes 2012, section 18.77, subdivision 12, is amended to read:
20.19    Subd. 12. Propagating parts. "Propagating parts" means all plant parts, including
20.20seeds, that are capable of producing new plants.

20.21    Sec. 20. [18.771] NOXIOUS WEED CATEGORIES.
20.22(a) For purposes of this section, noxious weed category includes each of the
20.23following categories.
20.24(b) "Prohibited noxious weeds" includes noxious weeds that must be controlled or
20.25eradicated on all lands within the state. Transportation of a prohibited noxious weed's
20.26propagating parts is restricted by permit except as allowed by section 18.82. Prohibited
20.27noxious weeds may not be sold or propagated in Minnesota. There are two regulatory
20.28listings for prohibited noxious weeds in Minnesota:
20.29(1) the noxious weed eradicate list is established. Prohibited noxious weeds placed
20.30on the noxious weed eradicate list are plants that are not currently known to be present in
20.31Minnesota or are not widely established. These species must be eradicated; and
21.1(2) the noxious weed control list is established. Prohibited noxious weeds placed on
21.2the noxious weed control list are plants that are already established throughout Minnesota
21.3or regions of the state. Species on this list must at least be controlled.
21.4(c) "Restricted noxious weeds" includes noxious weeds that are widely distributed
21.5in Minnesota, but for which the only feasible means of control is to prevent their spread
21.6by prohibiting the importation, sale, and transportation of their propagating parts in the
21.7state, except as allowed by section 18.82.
21.8(d) "Specially regulated plants" includes noxious weeds that may be native
21.9species or have demonstrated economic value, but also have the potential to cause harm
21.10in noncontrolled environments. Plants designated as specially regulated have been
21.11determined to pose ecological, economical, or human or animal health concerns. Species
21.12specific management plans or rules that define the use and management requirements
21.13for these plants must be developed by the commissioner of agriculture for each plant
21.14designated as specially regulated. The commissioner must also take measures to minimize
21.15the potential for harm caused by these plants.
21.16(e) "County noxious weeds" includes noxious weeds that are designated by
21.17individual county boards to be enforced as prohibited noxious weeds within the county's
21.18jurisdiction and must be approved by the commissioner of agriculture, in consultation with
21.19the Noxious Weed Advisory Committee. Each county board must submit newly proposed
21.20county noxious weeds to the commissioner of agriculture for review. Approved county
21.21noxious weeds shall also be posted with the county's general weed notice prior to May 15
21.22each year. Counties are solely responsible for developing county noxious weed lists and
21.23their enforcement.

21.24    Sec. 21. Minnesota Statutes 2012, section 18.78, subdivision 3, is amended to read:
21.25    Subd. 3. Cooperative Weed control agreement. The commissioner, municipality,
21.26or county agricultural inspector or county-designated employee may enter into a
21.27cooperative weed control agreement with a landowner or weed management area
21.28group to establish a mutually agreed-upon noxious weed management plan for up to
21.29three years duration, whereby a noxious weed problem will be controlled without
21.30additional enforcement action. If a property owner fails to comply with the noxious weed
21.31management plan, an individual notice may be served.

21.32    Sec. 22. Minnesota Statutes 2012, section 18.79, subdivision 6, is amended to read:
21.33    Subd. 6. Training for control or eradication of noxious weeds. The commissioner
21.34shall conduct initial training considered necessary for inspectors and county-designated
22.1employees in the enforcement of the Minnesota Noxious Weed Law. The director of the
22.2 University of Minnesota Extension Service may conduct educational programs for the
22.3general public that will aid compliance with the Minnesota Noxious Weed Law. Upon
22.4request, the commissioner may provide information and other technical assistance to the
22.5county agricultural inspector or county-designated employee to aid in the performance of
22.6responsibilities specified by the county board under section 18.81, subdivisions 1a and 1b.

22.7    Sec. 23. Minnesota Statutes 2012, section 18.79, subdivision 13, is amended to read:
22.8    Subd. 13. Noxious weed designation. The commissioner, in consultation with the
22.9Noxious Weed Advisory Committee, shall determine which plants are noxious weeds
22.10subject to control regulation under sections 18.76 to 18.91. The commissioner shall
22.11prepare, publish, and revise as necessary, but at least once every three years, a list of
22.12noxious weeds and their designated classification. The list must be distributed to the public
22.13by the commissioner who may request the help of the University of Minnesota Extension,
22.14the county agricultural inspectors, and any other organization the commissioner considers
22.15appropriate to assist in the distribution. The commissioner may, in consultation with
22.16the Noxious Weed Advisory Committee, accept and consider noxious weed designation
22.17petitions from Minnesota citizens or Minnesota organizations or associations.

22.18    Sec. 24. Minnesota Statutes 2012, section 18.82, subdivision 1, is amended to read:
22.19    Subdivision 1. Permits. Except as provided in section 21.74, if a person wants to
22.20transport along a public highway materials or equipment containing the propagating parts of
22.21weeds designated as noxious by the commissioner, the person must secure a written permit
22.22for transportation of the material or equipment from an inspector or county-designated
22.23employee. Inspectors or county-designated employees may issue permits to persons
22.24residing or operating within their jurisdiction. If the noxious weed propagating parts are
22.25removed from materials and equipment or devitalized before being transported, a permit is
22.26not needed A permit is not required for the transport of noxious weeds for the purpose
22.27of destroying propagating parts at a Department of Agriculture-approved disposal site.
22.28Anyone transporting noxious weed propagating parts for this purpose shall ensure that all
22.29materials are contained in a manner that prevents escape during transport.

22.30    Sec. 25. Minnesota Statutes 2012, section 18.91, subdivision 1, is amended to read:
22.31    Subdivision 1. Duties. The commissioner shall consult with the Noxious Weed
22.32Advisory Committee to advise the commissioner concerning responsibilities under
22.33the noxious weed control program. The committee shall also evaluate species for
23.1invasiveness, difficulty of control, cost of control, benefits, and amount of injury caused
23.2by them. For each species evaluated, the committee shall recommend to the commissioner
23.3on which noxious weed list or lists, if any, the species should be placed. Species currently
23.4 designated as prohibited or restricted noxious weeds or specially regulated plants must
23.5be reevaluated every three years for a recommendation on whether or not they need to
23.6remain on the noxious weed lists. The committee shall also advise the commissioner on
23.7the implementation of the Minnesota Noxious Weed Law and assist the commissioner in
23.8the development of management criteria for each noxious weed category. Members of
23.9the committee are not entitled to reimbursement of expenses nor payment of per diem.
23.10Members shall serve two-year terms with subsequent reappointment by the commissioner.

23.11    Sec. 26. Minnesota Statutes 2012, section 18.91, subdivision 2, is amended to read:
23.12    Subd. 2. Membership. The commissioner shall appoint members, which shall
23.13include representatives from the following:
23.14(1) horticultural science, agronomy, and forestry at the University of Minnesota;
23.15(2) the nursery and landscape industry in Minnesota;
23.16(3) the seed industry in Minnesota;
23.17(4) the Department of Agriculture;
23.18(5) the Department of Natural Resources;
23.19(6) a conservation organization;
23.20(7) an environmental organization;
23.21(8) at least two farm organizations;
23.22(9) the county agricultural inspectors;
23.23(10) city, township, and county governments;
23.24(11) the Department of Transportation;
23.25(12) the University of Minnesota Extension;
23.26(13) the timber and forestry industry in Minnesota;
23.27(14) the Board of Water and Soil Resources; and
23.28(15) soil and water conservation districts.;
23.29(16) Minnesota Association of County Land Commissioners; and
23.30(17) members as needed.

23.31    Sec. 27. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
23.32to read:
23.33    Subd. 4a. Bulk pesticide storage facility. "Bulk pesticide storage facility" means a
23.34facility that is required to have a permit under section 18B.14.

24.1    Sec. 28. Minnesota Statutes 2012, section 18B.065, subdivision 2a, is amended to read:
24.2    Subd. 2a. Disposal site requirement. (a) For agricultural waste pesticides, the
24.3commissioner must designate a place in each county of the state that is available at least
24.4every other year for persons to dispose of unused portions of agricultural pesticides. The
24.5commissioner shall consult with the person responsible for solid waste management
24.6and disposal in each county to determine an appropriate location and to advertise each
24.7collection event. The commissioner may provide a collection opportunity in a county
24.8more frequently if the commissioner determines that a collection is warranted.
24.9    (b) For nonagricultural waste pesticides, the commissioner must provide a disposal
24.10opportunity each year in each county or enter into a contract with a group of counties
24.11under a joint powers agreement or contract for household hazardous waste disposal.
24.12(c) As provided under subdivision 7, the commissioner may enter into cooperative
24.13agreements with local units of government to provide the collections required under
24.14paragraph (a) or (b) and shall provide a local unit of government, as part of the cooperative
24.15agreement, with funding for reasonable costs incurred including, but not limited to, related
24.16supplies, transportation, advertising, and disposal costs as well as reasonable overhead
24.17costs.
24.18    (d) A person who collects waste pesticide under this section shall, on a form
24.19provided or in a method approved by the commissioner, record information on each
24.20waste pesticide product collected including, but not limited to, the quantity collected
24.21and either the product name and its active ingredient or ingredients or the United States
24.22Environmental Protection Agency registration number. The person must submit this
24.23information to the commissioner at least annually by January 30.
24.24    (e) Notwithstanding the recording and reporting requirements of paragraph (d),
24.25persons are not required to record or report agricultural or nonagricultural waste pesticide
24.26collected in the remainder of 2013, 2014, and 2015. The commissioner shall analyze
24.27existing collection data to identify trends that will inform future collection strategies to
24.28better meet the needs and nature of current waste pesticide streams. By January 15, 2015,
24.29the commissioner shall report analysis, recommendations, and proposed policy changes to
24.30this program to legislative committees with jurisdiction over agriculture finance and policy.
24.31EFFECTIVE DATE.This section is effective the day following final enactment
24.32and applies to waste pesticide collected on or after that date through the end of 2015.

24.33    Sec. 29. Minnesota Statutes 2012, section 18B.07, subdivision 4, is amended to read:
24.34    Subd. 4. Pesticide storage safeguards at application sites. A person may not
24.35allow a pesticide, rinsate, or unrinsed pesticide container to be stored, kept, or to remain in
25.1or on any site without safeguards adequate to prevent an incident. Pesticides may not be
25.2stored in any location with an open drain.

25.3    Sec. 30. Minnesota Statutes 2012, section 18B.07, subdivision 5, is amended to read:
25.4    Subd. 5. Use of public water supplies for filling application equipment. (a) A
25.5person may not fill pesticide application equipment directly from a public water supply,
25.6as defined in section 144.382, or from public waters, as defined in section 103G.005,
25.7subdivision 15, unless the outlet from the public equipment or water supply is equipped
25.8with a backflow prevention device that complies with the Minnesota Plumbing Code
25.9under Minnesota Rules, parts 4715.2000 to 4715.2280.
25.10(b) Cross connections between a water supply used for filling pesticide application
25.11equipment are prohibited.
25.12(c) This subdivision does not apply to permitted applications of aquatic pesticides to
25.13public waters.

25.14    Sec. 31. Minnesota Statutes 2012, section 18B.07, subdivision 7, is amended to read:
25.15    Subd. 7. Cleaning equipment in or near surface water Pesticide handling
25.16restrictions. (a) A person may not: fill or clean pesticide application equipment where
25.17pesticides or materials contaminated with pesticides could enter ditches, surface water,
25.18groundwater, wells, drains, or sewers. For wells, the setbacks established in Minnesota
25.19Rules, part 4725.4450, apply.
25.20(1) clean pesticide application equipment in surface waters of the state; or
25.21(2) fill or clean pesticide application equipment adjacent to surface waters,
25.22ditches, or wells where, because of the slope or other conditions, pesticides or materials
25.23contaminated with pesticides could enter or contaminate the surface waters, groundwater,
25.24or wells, as a result of overflow, leakage, or other causes.
25.25(b) This subdivision does not apply to permitted application of aquatic pesticides to
25.26public waters.

25.27    Sec. 32. Minnesota Statutes 2012, section 18B.26, subdivision 3, is amended to read:
25.28    Subd. 3. Registration application and gross sales fee. (a) For an agricultural
25.29pesticide, a registrant shall pay an annual registration application fee for each agricultural
25.30pesticide of $350. The fee is due by December 31 preceding the year for which the
25.31application for registration is made. The fee is nonrefundable.
25.32(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual
25.33registration application fee for each nonagricultural pesticide of $350. The fee is due by
26.1December 31 preceding the year for which the application for registration is made. The
26.2fee is nonrefundable. The registrant of a nonagricultural pesticide shall pay, in addition to
26.3the $350 minimum fee, a fee of 0.5 percent of annual gross sales of the nonagricultural
26.4pesticide in the state and the annual gross sales of the nonagricultural pesticide sold into
26.5the state for use in this state. The commissioner may not assess a fee under this paragraph
26.6if the amount due based on percent of annual gross sales is less than $10 No fee is required
26.7if the fee due amount based on percent of annual gross sales of a nonagricultural pesticide
26.8is less than $10. The registrant shall secure sufficient sales information of nonagricultural
26.9pesticides distributed into this state from distributors and dealers, regardless of distributor
26.10location, to make a determination. Sales of nonagricultural pesticides in this state and
26.11sales of nonagricultural pesticides for use in this state by out-of-state distributors are not
26.12exempt and must be included in the registrant's annual report, as required under paragraph
26.13(g), and fees shall be paid by the registrant based upon those reported sales. Sales of
26.14nonagricultural pesticides in the state for use outside of the state are exempt from the
26.15gross sales fee in this paragraph if the registrant properly documents the sale location and
26.16distributors. A registrant paying more than the minimum fee shall pay the balance due by
26.17March 1 based on the gross sales of the nonagricultural pesticide by the registrant for the
26.18preceding calendar year. A pesticide determined by the commissioner to be a sanitizer or
26.19disinfectant is exempt from the gross sales fee.
26.20(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed
26.21pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the
26.22agricultural pesticide in the state and the annual gross sales of the agricultural pesticide
26.23sold into the state for use in this state.
26.24(d) In those cases where a registrant first sells an agricultural pesticide in or into the
26.25state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer
26.26license and is responsible for payment of the annual gross sales fee under paragraph (c),
26.27record keeping under paragraph (i), and all other requirements of section 18B.316.
26.28(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013,
26.29by the commissioner on the registration and sale of pesticides is less than $6,600,000, the
26.30commissioner, after a public hearing, may increase proportionally the pesticide sales and
26.31product registration fees under this chapter by the amount necessary to ensure this level
26.32of revenue is achieved. The authority under this section expires on June 30, 2014. The
26.33commissioner shall report any fee increases under this paragraph 60 days before the fee
26.34change is effective to the senate and house of representatives agriculture budget divisions.
27.1    (f) An additional fee of 50 percent of the registration application fee must be paid by
27.2the applicant for each pesticide to be registered if the application is a renewal application
27.3that is submitted after December 31.
27.4    (g) A registrant must annually report to the commissioner the amount, type and
27.5annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or
27.6otherwise distributed in the state. The report shall be filed by March 1 for the previous
27.7year's registration. The commissioner shall specify the form of the report or approve
27.8the method for submittal of the report and may require additional information deemed
27.9necessary to determine the amount and type of nonagricultural pesticide annually
27.10distributed in the state. The information required shall include the brand name, United
27.11States Environmental Protection Agency registration number, and amount of each
27.12nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but
27.13the information collected, if made public, shall be reported in a manner which does not
27.14identify a specific brand name in the report.
27.15(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually
27.16report to the commissioner the amount, type, and annual gross sales of each registered
27.17agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the
27.18state for use in the state. The report must be filed by January 31 for the previous year's
27.19sales. The commissioner shall specify the form, contents, and approved electronic method
27.20for submittal of the report and may require additional information deemed necessary to
27.21determine the amount and type of agricultural pesticide annually distributed within the
27.22state or into the state. The information required must include the brand name, United States
27.23Environmental Protection Agency registration number, and amount of each agricultural
27.24pesticide sold, offered for sale, or otherwise distributed in the state or into the state.
27.25(i) A person who registers a pesticide with the commissioner under paragraph (b),
27.26or a registrant under paragraph (d), shall keep accurate records for five years detailing
27.27all distribution or sales transactions into the state or in the state and subject to a fee and
27.28surcharge under this section.
27.29(j) The records are subject to inspection, copying, and audit by the commissioner
27.30and must clearly demonstrate proof of payment of all applicable fees and surcharges
27.31for each registered pesticide product sold for use in this state. A person who is located
27.32outside of this state must maintain and make available records required by this subdivision
27.33in this state or pay all costs incurred by the commissioner in the inspecting, copying, or
27.34auditing of the records.
28.1(k) The commissioner may adopt by rule regulations that require persons subject
28.2to audit under this section to provide information determined by the commissioner to be
28.3necessary to enable the commissioner to perform the audit.
28.4    (l) A registrant who is required to pay more than the minimum fee for any pesticide
28.5under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee
28.6paid after March 1 in the year for which the license is to be issued.

28.7    Sec. 33. Minnesota Statutes 2012, section 18B.305, is amended to read:
28.818B.305 PESTICIDE EDUCATION AND TRAINING.
28.9    Subdivision 1. Education and training. (a) The commissioner, as the lead agency,
28.10 shall develop, implement or approve, and evaluate, in conjunction consultation with the
28.11 University of Minnesota Extension Service, the Minnesota State Colleges and Universities
28.12system, and other educational institutions, innovative educational and training programs
28.13addressing pesticide concerns including:
28.14(1) water quality protection;
28.15(2) endangered species protection;
28.16(3) minimizing pesticide residues in food and water;
28.17(4) worker protection and applicator safety;
28.18(5) chronic toxicity;
28.19(6) integrated pest management and pest resistance; and
28.20(7) pesticide disposal;
28.21(8) pesticide drift;
28.22(9) relevant laws including pesticide labels and labeling and state and federal rules
28.23and regulations; and
28.24(10) current science and technology updates.
28.25(b) The commissioner shall appoint educational planning committees which must
28.26include representatives of industry and applicators.
28.27(c) Specific current regulatory concerns must be discussed and, if appropriate,
28.28incorporated into each training session. Relevant changes to pesticide product labels or
28.29labeling or state and federal rules and regulations may be included.
28.30(d) The commissioner may approve programs from private industry, higher
28.31education institutions, and nonprofit organizations that meet minimum requirements for
28.32education, training, and certification.
28.33    Subd. 2. Training manual and examination development. The commissioner,
28.34in conjunction with the University of Minnesota Extension Service and other higher
28.35education institutions, shall continually revise and update pesticide applicator training
29.1manuals and examinations. The manuals and examinations must be written to meet or
29.2exceed the minimum standards required by the United States Environmental Protection
29.3Agency and pertinent state specific information. Questions in the examinations must be
29.4determined by the commissioner in consultation with other responsible agencies. Manuals
29.5and examinations must include pesticide management practices that discuss prevention of
29.6pesticide occurrence in groundwaters groundwater and surface water of the state.

29.7    Sec. 34. Minnesota Statutes 2012, section 18B.316, subdivision 1, is amended to read:
29.8    Subdivision 1. Requirement. (a) A person must not distribute offer for sale or sell
29.9an agricultural pesticide in the state or into the state without first obtaining an agricultural
29.10pesticide dealer license.
29.11(b) Each location or place of business from which an agricultural pesticide is
29.12distributed offered for sale or sold in the state or into the state is required to have a
29.13separate agricultural pesticide dealer license.
29.14(c) A person who is a licensed pesticide dealer under section 18B.31 is not required
29.15to also be licensed under this subdivision.

29.16    Sec. 35. Minnesota Statutes 2012, section 18B.316, subdivision 3, is amended to read:
29.17    Subd. 3. Resident agent. A person required to be licensed under subdivisions 1
29.18and 2, or a person licensed as a pesticide dealer pursuant to section 18B.31 and who
29.19operates from a location or place of business outside the state and who distributes offers
29.20for sale or sells an agricultural pesticide into the state, must continuously maintain in
29.21this state the following:
29.22(1) a registered office; and
29.23(2) a registered agent, who may be either a resident of this state whose business
29.24office or residence is identical with the registered office under clause (1), a domestic
29.25corporation or limited liability company, or a foreign corporation of limited liability
29.26company authorized to transact business in this state and having a business office identical
29.27with the registered office.
29.28A person licensed under this section or section 18B.31 shall annually file with the
29.29commissioner, either at the time of initial licensing or as part of license renewal, the name,
29.30address, telephone number, and e-mail address of the licensee's registered agent.
29.31For licensees under section 18B.31 who are located in the state, the licensee is
29.32the registered agent.

29.33    Sec. 36. Minnesota Statutes 2012, section 18B.316, subdivision 4, is amended to read:
30.1    Subd. 4. Responsibility. The resident agent is responsible for the acts of a licensed
30.2agricultural pesticide dealer, or of a licensed pesticide dealer under section 18B.31 who
30.3operates from a location or place of business outside the state and who distributes offers
30.4for sale or sells an agricultural pesticide into the state, as well as the acts of the employees
30.5of those licensees.

30.6    Sec. 37. Minnesota Statutes 2012, section 18B.316, subdivision 8, is amended to read:
30.7    Subd. 8. Report of sales and payment to commissioner. A person who is an
30.8agricultural pesticide dealer, or is a licensed pesticide dealer under section 18B.31, who
30.9distributes offers for sale or sells an agricultural pesticide in or into the state, and a
30.10pesticide registrant pursuant to section 18B.26, subdivision 3, paragraph (d), shall no
30.11later than January 31 of each year report and pay applicable fees on annual gross sales
30.12of agricultural pesticides to the commissioner pursuant to requirements under section
30.1318B.26, subdivision 3 , paragraphs (c) and (h).

30.14    Sec. 38. Minnesota Statutes 2012, section 18B.316, subdivision 9, is amended to read:
30.15    Subd. 9. Application. (a) A person must apply to the commissioner for an
30.16agricultural pesticide dealer license on forms and in a manner approved by the
30.17commissioner.
30.18(b) The applicant must be the person in charge of each location or place of business
30.19from which agricultural pesticides are distributed offered for sale or sold in or into the state.
30.20(c) The commissioner may require that the applicant provide information regarding
30.21the applicant's proposed operations and other information considered pertinent by the
30.22commissioner.
30.23(d) The commissioner may require additional demonstration of licensee qualification
30.24if the licensee has had a license suspended or revoked, or has otherwise had a history of
30.25violations in another state or violations of this chapter.
30.26(e) A licensed agricultural pesticide dealer who changes the dealer's address or place
30.27of business must immediately notify the commissioner of the change.
30.28(f) Beginning January 1, 2011, an application for renewal of an agricultural pesticide
30.29dealer license is complete only when a report and any applicable payment of fees under
30.30subdivision 8 are received by the commissioner.

30.31    Sec. 39. Minnesota Statutes 2012, section 18B.37, subdivision 4, is amended to read:
30.32    Subd. 4. Storage, handling, Incident response, and disposal plan. A pesticide
30.33dealer, agricultural pesticide dealer, or a commercial, noncommercial, or structural pest
31.1control applicator or the business that the applicator is employed by business must develop
31.2and maintain a an incident response plan that describes its pesticide storage, handling,
31.3incident response, and disposal practices the actions that will be taken to prevent and
31.4respond to pesticide incidents. The plan must contain the same information as forms
31.5provided by the commissioner. The plan must be kept at a principal business site or location
31.6within this state and must be submitted to the commissioner upon request on forms provided
31.7by the commissioner. The plan must be available for inspection by the commissioner.

31.8    Sec. 40. Minnesota Statutes 2012, section 18C.430, is amended to read:
31.918C.430 COMMERCIAL ANIMAL WASTE TECHNICIAN.
31.10    Subdivision 1. Requirement. (a) Except as provided in paragraph (c), after March
31.111, 2000, A person may not manage or apply animal wastes to the land for hire without a
31.12valid commercial animal waste technician license. This section does not apply to a person
31.13managing or applying animal waste on land managed by the person's employer.:
31.14(1) without a valid commercial animal waste technician applicator license;
31.15(2) without a valid commercial animal waste technician site manager license; or
31.16(3) as a sole proprietorship, company, partnership, or corporation unless a
31.17commercial animal waste technician company license is held and a commercial animal
31.18waste technical site manager is employed by the entity.
31.19(b) A person managing or applying animal wastes for hire must have a valid
31.20license identification card when managing or applying animal wastes for hire and must
31.21display it upon demand by an authorized representative of the commissioner or a law
31.22enforcement officer. The commissioner shall prescribe the information required on the
31.23license identification card.
31.24(c) A person who is not a licensed commercial animal waste technician who has had
31.25at least two hours of training or experience in animal waste management may manage
31.26or apply animal waste for hire under the supervision of a commercial animal waste
31.27technician. A commercial animal waste technician applicator must have a minimum of
31.28two hours of certification training in animal waste management and may only manage or
31.29apply animal waste for hire under the supervision of a commercial animal waste technician
31.30site manager. The commissioner shall prescribe the conditions of the supervision and the
31.31form and format required on the certification training.
31.32(d) This section does not apply to a person managing or applying animal waste on
31.33land managed by the person's employer.
31.34    Subd. 2. Responsibility. A person required to be licensed under this section who
31.35performs animal waste management or application for hire or who employs a person to
32.1perform animal waste management or application for compensation is responsible for
32.2proper management or application of the animal wastes.
32.3    Subd. 3. License. (a) A commercial animal waste technician license, including
32.4applicator, site manager, and company:
32.5(1) is valid for three years one year and expires on December 31 of the third year for
32.6which it is issued, unless suspended or revoked before that date;
32.7(2) is not transferable to another person; and
32.8(3) must be prominently displayed to the public in the commercial animal waste
32.9technician's place of business.
32.10(b) The commercial animal waste technician company license number assigned by
32.11the commissioner must appear on the application equipment when a person manages
32.12or applies animal waste for hire.
32.13    Subd. 4. Application. (a) A person must apply to the commissioner for a commercial
32.14animal waste technician license on forms and in the manner required by the commissioner
32.15and must include the application fee. The commissioner shall prescribe and administer
32.16an examination or equivalent measure to determine if the applicant is eligible for the
32.17commercial animal waste technician license, site manager license, or applicator license.
32.18(b) The commissioner of agriculture, in cooperation with the University of
32.19Minnesota Extension Service and appropriate educational institutions, shall establish and
32.20implement a program for training and licensing commercial animal waste technicians.
32.21    Subd. 5. Renewal application. (a) A person must apply to the commissioner of
32.22agriculture to renew a commercial animal waste technician license and must include the
32.23application fee. The commissioner may renew a commercial animal waste technician
32.24applicator or site manager license, subject to reexamination, attendance at workshops
32.25approved by the commissioner, or other requirements imposed by the commissioner to
32.26provide the animal waste technician with information regarding changing technology and
32.27to help ensure a continuing level of competence and ability to manage and apply animal
32.28wastes properly. The applicant may renew a commercial animal waste technician license
32.29within 12 months after expiration of the license without having to meet initial testing
32.30requirements. The commissioner may require additional demonstration of animal waste
32.31technician qualification if a person has had a license suspended or revoked or has had a
32.32history of violations of this section.
32.33(b) An applicant who meets renewal requirements by reexamination instead
32.34of attending workshops must pay a fee for the reexamination as determined by the
32.35commissioner.
33.1    Subd. 6. Financial responsibility. (a) A commercial animal waste technician
33.2license may not be issued unless the applicant furnishes proof of financial responsibility.
33.3The financial responsibility may be demonstrated by (1) proof of net assets equal to or
33.4greater than $50,000, or (2) a performance bond or insurance of the kind and in an amount
33.5determined by the commissioner of agriculture.
33.6(b) The bond or insurance must cover a period of time at least equal to the term of
33.7the applicant's license. The commissioner shall immediately suspend the license of a
33.8person who fails to maintain the required bond or insurance.
33.9(c) An employee of a licensed person is not required to maintain an insurance policy
33.10or bond during the time the employer is maintaining the required insurance or bond.
33.11(d) Applications for reinstatement of a license suspended under paragraph (b) must
33.12be accompanied by proof of satisfaction of judgments previously rendered.
33.13    Subd. 7. Application fee. (a) A person initially applying for or renewing
33.14a commercial animal waste technician applicator license must pay a nonrefundable
33.15application fee of $50 and a fee of $10 for each additional identification card requested.
33.16 $25. A person initially applying for or renewing a commercial animal waste technician
33.17site manager license must pay a nonrefundable application fee of $50. A person initially
33.18applying for or renewing a commercial animal waste technician company license must
33.19pay a nonrefundable application fee of $100.
33.20(b) A license renewal application received after March 1 in the year for which the
33.21license is to be issued is subject to a penalty fee of 50 percent of the application fee. The
33.22penalty fee must be paid before the renewal license may be issued.
33.23(c) An application for a duplicate commercial animal waste technician license must
33.24be accompanied by a nonrefundable fee of $10.

33.25    Sec. 41. Minnesota Statutes 2012, section 18C.433, subdivision 1, is amended to read:
33.26    Subdivision 1. Requirement. Beginning January 1, 2006, only a commercial
33.27animal waste technician, site manager or commercial animal waste technician applicator
33.28 may apply animal waste from a feedlot that:
33.29(1) has a capacity of 300 animal units or more; and
33.30(2) does not have an updated manure management plan that meets the requirements
33.31of Pollution Control Agency rules.

33.32    Sec. 42. Minnesota Statutes 2012, section 31.94, is amended to read:
33.3331.94 COMMISSIONER DUTIES.
34.1(a) In order to promote opportunities for organic agriculture in Minnesota, the
34.2commissioner shall:
34.3(1) survey producers and support services and organizations to determine
34.4information and research needs in the area of organic agriculture practices;
34.5(2) work with the University of Minnesota to demonstrate the on-farm applicability
34.6of organic agriculture practices to conditions in this state;
34.7(3) direct the programs of the department so as to work toward the promotion of
34.8organic agriculture in this state;
34.9(4) inform agencies of how state or federal programs could utilize and support
34.10organic agriculture practices; and
34.11(5) work closely with producers, the University of Minnesota, the Minnesota Trade
34.12Office, and other appropriate organizations to identify opportunities and needs as well
34.13as ensure coordination and avoid duplication of state agency efforts regarding research,
34.14teaching, marketing, and extension work relating to organic agriculture.
34.15(b) By November 15 of each year that ends in a zero or a five, the commissioner,
34.16in conjunction with the task force created in paragraph (c), shall report on the status of
34.17organic agriculture in Minnesota to the legislative policy and finance committees and
34.18divisions with jurisdiction over agriculture. The report must include available data on
34.19organic acreage and production, available data on the sales or market performance of
34.20organic products, and recommendations regarding programs, policies, and research efforts
34.21that will benefit Minnesota's organic agriculture sector.
34.22(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the
34.23University of Minnesota on policies and programs that will improve organic agriculture in
34.24Minnesota, including how available resources can most effectively be used for outreach,
34.25education, research, and technical assistance that meet the needs of the organic agriculture
34.26community. The task force must consist of the following residents of the state:
34.27(1) three organic farmers using organic agriculture methods;
34.28(2) one wholesaler or distributor of organic products;
34.29(3) one representative of organic certification agencies;
34.30(4) two organic processors;
34.31(5) one representative from University of Minnesota Extension;
34.32(6) one University of Minnesota faculty member;
34.33(7) one representative from a nonprofit organization representing producers;
34.34(8) two public members;
34.35(9) one representative from the United States Department of Agriculture;
34.36(10) one retailer of organic products; and
35.1(11) one organic consumer representative.
35.2The commissioner, in consultation with the director of the Minnesota Agricultural
35.3Experiment Station; the dean and director of University of Minnesota Extension; and the
35.4dean of the College of Food, Agricultural and Natural Resource Sciences, shall appoint
35.5members to serve staggered two-year three-year terms.
35.6Compensation and removal of members are governed by section 15.059, subdivision
35.76
. The task force must meet at least twice each year and expires on June 30, 2013 2016.
35.8(d) For the purposes of expanding, improving, and developing production and
35.9marketing of the organic products of Minnesota agriculture, the commissioner may
35.10receive funds from state and federal sources and spend them, including through grants or
35.11contracts, to assist producers and processors to achieve certification, to conduct education
35.12or marketing activities, to enter into research and development partnerships, or to address
35.13production or marketing obstacles to the growth and well-being of the industry.
35.14(e) The commissioner may facilitate the registration of state organic production
35.15and handling operations including those exempt from organic certification according to
35.16Code of Federal Regulations, title 7, section 205.101, and certification agents operating
35.17within the state.

35.18    Sec. 43. Minnesota Statutes 2012, section 41A.10, subdivision 2, is amended to read:
35.19    Subd. 2. Cellulosic biofuel production goal. The state cellulosic biofuel production
35.20goal is one-quarter of the total amount necessary for ethanol biofuel use required under
35.21section 239.791, subdivision 1a 1, by 2015 or when cellulosic biofuel facilities in the state
35.22attain a total annual production level of 60,000,000 gallons, whichever is first.

35.23    Sec. 44. Minnesota Statutes 2012, section 41A.10, is amended by adding a subdivision
35.24to read:
35.25    Subd. 3. Expiration. This section expires January 1, 2015.

35.26    Sec. 45. Minnesota Statutes 2012, section 41A.105, subdivision 1a, is amended to read:
35.27    Subd. 1a. Definitions. For the purpose of this section:
35.28    (1) "biobased content" means a chemical, polymer, monomer, or plastic that is not
35.29sold primarily for use as food, feed, or fuel and that has a biobased percentage of at least
35.3051 percent as determined by testing representative samples using American Society for
35.31Testing and Materials specification D6866;
35.32    (2) "biobased formulated product" means a product that is not sold primarily for use
35.33as food, feed, or fuel and that has a biobased content percentage of at least ten percent
36.1as determined by testing representative samples using American Society for Testing
36.2and Materials specification D6866, or that contains a biobased chemical constituent
36.3that displaces a known hazardous or toxic constituent previously used in the product
36.4formulation;
36.5    (1) (3) "biobutanol facility" means a facility at which biobutanol is produced; and
36.6    (2) (4) "biobutanol" means fermentation isobutyl alcohol that is derived from
36.7agricultural products, including potatoes, cereal grains, cheese whey, and sugar beets;
36.8forest products; or other renewable resources, including residue and waste generated
36.9from the production, processing, and marketing of agricultural products, forest products,
36.10and other renewable resources.

36.11    Sec. 46. Minnesota Statutes 2012, section 41A.105, subdivision 3, is amended to read:
36.12    Subd. 3. Duties. The board shall research and report to the commissioner of
36.13agriculture and to the legislature recommendations as to how the state can invest its
36.14resources to most efficiently achieve energy independence, agricultural and natural
36.15resources sustainability, and rural economic vitality. The board shall:
36.16    (1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen,
36.17methanol, biodiesel, and ethanol within Minnesota;
36.18    (2) examine the opportunity for biobased content and biobased formulated product
36.19production at integrated biorefineries or stand alone facilities using agricultural and
36.20forestry feedstocks;
36.21    (2) (3) develop equity grant programs to assist locally owned facilities;
36.22    (3) (4) study the proper role of the state in creating financing and investing and
36.23providing incentives;
36.24    (4) (5) evaluate how state and federal programs, including the Farm Bill, can best
36.25work together and leverage resources;
36.26    (5) (6) work with other entities and committees to develop a clean energy program;
36.27and
36.28    (6) (7) report to the legislature before February 1 each year with recommendations
36.29as to appropriations and results of past actions and projects.

36.30    Sec. 47. Minnesota Statutes 2012, section 41A.105, subdivision 5, is amended to read:
36.31    Subd. 5. Expiration. This section expires June 30, 2014 2015.

36.32    Sec. 48. Minnesota Statutes 2012, section 41A.12, is amended by adding a subdivision
36.33to read:
37.1    Subd. 3a. Grant awards. Grant projects may continue for up to three years.
37.2Multiyear projects must be reevaluated by the commissioner before second- and third-year
37.3funding is approved. A project is limited to one grant for its funding.

37.4    Sec. 49. Minnesota Statutes 2012, section 41B.04, subdivision 9, is amended to read:
37.5    Subd. 9. Restructured loan agreement. (a) For a deferred restructured loan, all
37.6payments on the primary and secondary principal, all payments of interest on the secondary
37.7principal, and an agreed portion of the interest payable to the eligible agricultural lender
37.8on the primary principal must be deferred to the end of the term of the loan.
37.9(b) Interest on secondary principal must accrue at a below market interest rate.
37.10(c) At the conclusion of the term of the restructured loan, the borrower owes primary
37.11principal, secondary principal, and deferred interest on primary and secondary principal.
37.12However, part of this balloon payment may be forgiven following an appraisal by the
37.13lender and the authority to determine the current market value of the real estate subject to
37.14the mortgage. If the current market value of the land after appraisal is less than the amount
37.15of debt owed by the borrower to the lender and authority on this obligation, that portion of
37.16the obligation that exceeds the current market value of the real property must be forgiven
37.17by the lender and the authority in the following order:
37.18(1) deferred interest on secondary principal;
37.19(2) secondary principal;
37.20(3) deferred interest on primary principal;
37.21(4) primary principal as provided in an agreement between the authority and the
37.22lender; and
37.23(5) accrued but not deferred interest on primary principal.
37.24(d) For an amortized restructured loan, payments must include installments on
37.25primary principal and interest on the primary principal. An amortized restructured loan
37.26must be amortized over a time period and upon terms to be established by the authority by
37.27rule.
37.28(e) A borrower may prepay the restructured loan, with all primary and secondary
37.29principal and interest and deferred interest at any time without prepayment penalty.
37.30(f) The authority may not participate in refinancing a restructured loan at the
37.31conclusion of the restructured loan.

37.32    Sec. 50. Minnesota Statutes 2012, section 41D.01, subdivision 4, is amended to read:
37.33    Subd. 4. Expiration. This section expires on June 30, 2013 2018.

38.1    Sec. 51. Minnesota Statutes 2012, section 116J.437, subdivision 1, is amended to read:
38.2    Subdivision 1. Definitions. (a) For the purpose of this section, the following terms
38.3have the meanings given.
38.4    (b) "Green economy" means products, processes, methods, technologies, or services
38.5intended to do one or more of the following:
38.6    (1) increase the use of energy from renewable sources, including through achieving
38.7the renewable energy standard established in section 216B.1691;
38.8    (2) achieve the statewide energy-savings goal established in section 216B.2401,
38.9including energy savings achieved by the conservation investment program under section
38.10216B.241 ;
38.11    (3) achieve the greenhouse gas emission reduction goals of section 216H.02,
38.12subdivision 1, including through reduction of greenhouse gas emissions, as defined in
38.13section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through,
38.14but not limited to, carbon capture, storage, or sequestration;
38.15    (4) monitor, protect, restore, and preserve the quality of surface waters, including
38.16actions to further the purposes of the Clean Water Legacy Act as provided in section
38.17114D.10, subdivision 1 ;
38.18    (5) expand the use of biofuels, including by expanding the feasibility or reducing the
38.19cost of producing biofuels or the types of equipment, machinery, and vehicles that can
38.20use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections
38.2141A.10, subdivision 2, and 41A.11 petroleum replacement goal in section 239.7911; or
38.22    (6) increase the use of green chemistry, as defined in section 116.9401.
38.23For the purpose of clause (3), "green economy" includes strategies that reduce carbon
38.24emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass
38.25transit or otherwise reducing commuting for employees.

38.26    Sec. 52. Minnesota Statutes 2012, section 216E.12, subdivision 4, is amended to read:
38.27    Subd. 4. Contiguous land. (a) When private real property that is an agricultural or
38.28nonagricultural homestead, nonhomestead agricultural land, rental residential property,
38.29and both commercial and noncommercial seasonal residential recreational property, as
38.30those terms are defined in section 273.13 is proposed to be acquired for the construction of
38.31a site or route for a high-voltage transmission line with a capacity of 200 kilovolts or more
38.32by eminent domain proceedings, the fee owner, or when applicable, the fee owner with the
38.33written consent of the contract for deed vendee, or the contract for deed vendee with the
38.34written consent of the fee owner, shall have the option to require the utility to condemn a
38.35fee interest in any amount of contiguous, commercially viable land which the owner or
39.1vendee wholly owns or has contracted to own in undivided fee and elects in writing to
39.2transfer to the utility within 60 days after receipt of the notice of the objects of the petition
39.3filed pursuant to section 117.055. Commercial viability shall be determined without regard
39.4to the presence of the utility route or site. Within 60 days after receipt by the utility of
39.5an owner's election to exercise this option, the utility shall provide written notice to the
39.6owner of any objection the utility has to the owner's election, and if no objection is made
39.7within that time, any objection shall be deemed waived. Within 90 days of the service of
39.8an objection by the utility, the district court having jurisdiction over the eminent domain
39.9proceeding shall hold a hearing to determine whether the utility's objection is upheld or
39.10rejected. The owner or, when applicable, the contract vendee shall have only one such
39.11option and may not expand or otherwise modify an election without the consent of the
39.12utility. The required acquisition of land pursuant to this subdivision shall be considered
39.13an acquisition for a public purpose and for use in the utility's business, for purposes of
39.14chapter 117 and section 500.24, respectively; provided that a utility shall divest itself
39.15completely of all such lands used for farming or capable of being used for farming not
39.16later than the time it can receive the market value paid at the time of acquisition of lands
39.17less any diminution in value by reason of the presence of the utility route or site. Upon
39.18the owner's election made under this subdivision, the easement interest over and adjacent
39.19to the lands designated by the owner to be acquired in fee, sought in the condemnation
39.20petition for a right-of-way for a high-voltage transmission line with a capacity of 200
39.21kilovolts or more shall automatically be converted into a fee taking.
39.22(b) All rights and protections provided to an owner under chapter 117, including in
39.23particular sections 117.031, 117.036, 117.186, and 117.52, apply to acquisition of land
39.24or an interest in land under this section.
39.25(c) Within 90 days of an owner's election under this subdivision to require the utility
39.26to acquire land, or 90 days after a district court decision overruling a utility objection to an
39.27election made pursuant to paragraph (a), the utility must make a written offer to acquire
39.28that land and amend its condemnation petition to include the additional land.
39.29(d) For purposes of this subdivision, "owner" means the fee owner or, when
39.30applicable, the fee owner with the written consent of the contract for deed vendee or the
39.31contract for deed vendee with the written consent of the fee owner.
39.32EFFECTIVE DATE.This section is effective the day following final enactment
39.33and applies to eminent domain proceedings or actions pending or commenced on or after
39.34that date. "Commenced" means when service of notice of the petition under Minnesota
39.35Statutes, section 117.055, is made.

40.1    Sec. 53. Minnesota Statutes 2012, section 223.17, is amended by adding a subdivision
40.2to read:
40.3    Subd. 7a. Bond requirements; claims. For entities licensed under this chapter
40.4and chapter 232, the bond requirements and claims against the bond are governed under
40.5section 232.22, subdivision 6a.

40.6    Sec. 54. Minnesota Statutes 2012, section 232.22, is amended by adding a subdivision
40.7to read:
40.8    Subd. 6a. Bond determinations. If a public grain warehouse operator is licensed
40.9under both this chapter and chapter 223, the warehouse shall have its bond determined
40.10by its gross annual grain purchase amount or its annual average grain storage value,
40.11whichever is greater. For those entities licensed under this chapter and chapter 223, the
40.12entire bond shall be available to any claims against the bond for claims filed under this
40.13chapter and chapter 223.

40.14    Sec. 55. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
40.15to read:
40.16    Subd. 1a. Advanced biofuel. "Advanced biofuel" has the meaning given in Public
40.17Law 110-140, title 2, subtitle A, section 201.

40.18    Sec. 56. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
40.19to read:
40.20    Subd. 5a. Biofuel. "Biofuel" means a renewable fuel with an approved pathway
40.21under authority of the federal Energy Policy Act of 2005, Public Law 109-58, as amended
40.22by the federal Energy Independence and Security Act of 2007, Public Law 110–140, and
40.23approved for sale by the United States Environmental Protection Agency. As such, biofuel
40.24includes both advanced and conventional biofuels.

40.25    Sec. 57. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
40.26to read:
40.27    Subd. 7a. Conventional biofuel. "Conventional biofuel" means ethanol derived
40.28from cornstarch, as defined in Public Law 110-140, title 2, subtitle A, section 201.

40.29    Sec. 58. Minnesota Statutes 2012, section 239.791, subdivision 1, is amended to read:
40.30    Subdivision 1. Minimum ethanol biofuel content required. (a) Except as provided
40.31in subdivisions 10 to 14, a person responsible for the product shall ensure that all gasoline
41.1sold or offered for sale in Minnesota must contain at least the quantity of ethanol biofuel
41.2 required by clause (1) or (2), whichever is greater at the option of the person responsible
41.3for the product:
41.4    (1) the greater of:
41.5    (i) 10.0 percent denatured ethanol conventional biofuel by volume; or
41.6    (2) (ii) the maximum percent of denatured ethanol conventional biofuel by volume
41.7authorized in a waiver granted by the United States Environmental Protection Agency; or
41.8    (2) 10.0 percent of a biofuel, other than a conventional biofuel, by volume authorized
41.9in a waiver granted by the United States Environmental Protection Agency or a biofuel
41.10formulation registered by the United States Environmental Protection Agency under
41.11United States Code, title 42, section 7545.
41.12    (b) For purposes of enforcing the minimum ethanol requirement of paragraph
41.13(a), clause (1), item (i), or clause (2), a gasoline/ethanol gasoline/biofuel blend will be
41.14construed to be in compliance if the ethanol biofuel content, exclusive of denaturants and
41.15other permitted components, comprises not less than 9.2 percent by volume and not more
41.16than 10.0 percent by volume of the blend as determined by an appropriate United States
41.17Environmental Protection Agency or American Society of Testing Materials standard
41.18method of analysis of alcohol/ether content in engine fuels.
41.19    (c) The provisions of this subdivision are suspended during any period of time that
41.20subdivision 1a, paragraph (a), is in effect. The aggregate amount of biofuel blended
41.21pursuant to this subdivision may be any biofuel; however, conventional biofuel must
41.22comprise no less than the portion specified on and after the specified dates:
41.23
(1)
July 1, 2013
90 percent
41.24
(2)
January 1, 2015
80 percent
41.25
(3)
January 1, 2017
70 percent
41.26
(4)
January 1, 2020
60 percent
41.27
(5)
January 1, 2025
no minimum

41.28    Sec. 59. Minnesota Statutes 2012, section 239.791, subdivision 2a, is amended to read:
41.29    Subd. 2a. Federal Clean Air Act waivers; conditions. (a) Before a waiver granted
41.30by the United States Environmental Protection Agency under section 211(f)(4) of the
41.31Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4),
41.32 may alter the minimum content level required by subdivision 1, paragraph (a), clause (2),
41.33or subdivision 1a, paragraph (a), clause (2) (1), item (ii), the waiver must:
41.34    (1) apply to all gasoline-powered motor vehicles irrespective of model year; and
41.35    (2) allow for special regulatory treatment of Reid vapor pressure under Code of
41.36Federal Regulations, title 40, section 80.27, paragraph (d), for blends of gasoline and
42.1ethanol up to the maximum percent of denatured ethanol by volume authorized under
42.2the waiver.
42.3    (b) The minimum ethanol biofuel requirement in subdivision 1, paragraph (a), clause
42.4(2), or subdivision 1a, paragraph (a), clause (2), shall, upon the grant of the federal waiver
42.5 or authority specified in United States Code, title 42, section 7545, that allows for greater
42.6blends of gasoline and biofuel in this state, be effective the day after the commissioner
42.7of commerce publishes notice in the State Register. In making this determination, the
42.8commissioner shall consider the amount of time required by refiners, retailers, pipeline
42.9and distribution terminal companies, and other fuel suppliers, acting expeditiously, to
42.10make the operational and logistical changes required to supply fuel in compliance with
42.11the minimum ethanol biofuel requirement.

42.12    Sec. 60. Minnesota Statutes 2012, section 239.791, subdivision 2b, is amended to read:
42.13    Subd. 2b. Limited liability waiver. No motor fuel shall be deemed to be a defective
42.14product by virtue of the fact that the motor fuel is formulated or blended pursuant to
42.15the requirements of subdivision 1, paragraph (a), clause (2), or subdivision 1a, under
42.16any theory of liability except for simple or willful negligence or fraud. This subdivision
42.17does not preclude an action for negligent, fraudulent, or willful acts. This subdivision
42.18does not affect a person whose liability arises under chapter 115, water pollution control;
42.19115A, waste management; 115B, environmental response and liability; 115C, leaking
42.20underground storage tanks; or 299J, pipeline safety; under public nuisance law for damage
42.21to the environment or the public health; under any other environmental or public health
42.22law; or under any environmental or public health ordinance or program of a municipality
42.23as defined in section 466.01.

42.24    Sec. 61. Minnesota Statutes 2012, section 239.7911, is amended to read:
42.25239.7911 PETROLEUM REPLACEMENT PROMOTION.
42.26    Subdivision 1. Petroleum replacement goal. The tiered petroleum replacement
42.27goal of the state of Minnesota is that biofuel comprises at least the specified portion of
42.28total gasoline sold or offered for sale in this state by each specified year:
42.29    (1) at least 20 percent of the liquid fuel sold in the state is derived from renewable
42.30sources by December 31, 2015; and
42.31    (2) at least 25 percent of the liquid fuel sold in the state is derived from renewable
42.32sources by December 31, 2025.
42.33
(1)
2015
14 percent
42.34
(2)
2017
18 percent
43.1
(3)
2020
25 percent
43.2
(4)
2025
30 percent
43.3    Subd. 2. Promotion of renewable liquid fuels. (a) The commissioner of agriculture,
43.4in consultation with the commissioners of commerce and the Pollution Control Agency,
43.5shall identify and implement activities necessary for the widespread use of renewable
43.6liquid fuels in the state to achieve the goals in subdivision 1. Beginning November
43.71, 2005, and continuing through 2015, the commissioners, or their designees, shall
43.8work with convene a task force pursuant to section 15.014 that includes representatives
43.9from the renewable fuels industry, petroleum retailers, refiners, automakers, small
43.10engine manufacturers, and other interested groups, to. The task force shall assist the
43.11commissioners in carrying out the activities in paragraph (b) and eliminating barriers to the
43.12use of greater biofuel blends in this state. The task force must coordinate efforts with the
43.13NextGen Energy Board, the biodiesel task force, and the Renewable Energy Roundtable
43.14and develop annual recommendations for administrative and legislative action.
43.15    (b) The activities of the commissioners under this subdivision shall include, but not
43.16be limited to:
43.17    (1) developing recommendations for specific, cost-effective incentives necessary
43.18to expedite the use of greater biofuel blends in this state including, but not limited to,
43.19incentives for retailers to install equipment necessary for dispensing to dispense renewable
43.20liquid fuels to the public;
43.21    (2) expanding the renewable-fuel options available to Minnesota consumers by
43.22obtaining federal approval for the use of E20 and additional blends that contain a greater
43.23percentage of ethanol, including but not limited to E30 and E50, as gasoline biofuel;
43.24    (3) developing recommendations for ensuring to ensure that motor vehicles and
43.25small engine equipment have access to an adequate supply of fuel;
43.26    (4) working with the owners and operators of large corporate automotive fleets in the
43.27state to increase their use of renewable fuels; and
43.28    (5) working to maintain an affordable retail price for liquid fuels;
43.29    (6) facilitating the production and use of advanced biofuels in this state; and
43.30    (7) developing procedures for reporting the amount and type of biofuel under
43.31subdivision 1 and section 239.791, subdivision 1, paragraph (c).
43.32    (c) Notwithstanding section 15.014, the task force required under paragraph (a)
43.33expires on December 31, 2015.

43.34    Sec. 62. Minnesota Statutes 2012, section 296A.01, is amended by adding a
43.35subdivision to read:
44.1    Subd. 8b. Biobutanol. "Biobutanol" means isobutyl alcohol produced by
44.2fermenting agriculturally generated organic material that is to be blended with gasoline
44.3and meets either:
44.4    (1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline
44.5for Use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM
44.6for general distribution; or
44.7    (2) in the absence of an ASTM standard specification, the following list of
44.8requirements:
44.9    (i) visually free of sediment and suspended matter;
44.10    (ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient
44.11temperature, whichever is higher;
44.12    (iii) free of any adulterant or contaminant that can render it unacceptable for its
44.13commonly used applications;
44.14    (iv) contains not less than 96 volume percent isobutyl alcohol;
44.15    (v) contains not more than 0.4 volume percent methanol;
44.16    (vi) contains not more than 1.0 volume percent water as determined by ASTM
44.17standard test method E203 or E1064;
44.18    (vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined
44.19by ASTM standard test method D1613;
44.20    (viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters
44.21as determined by ASTM standard test method D381;
44.22    (ix) sulfur content of not more than 30 parts per million as determined by ASTM
44.23standard test method D2622 or D5453; and
44.24    (x) contains not more than four parts per million total inorganic sulfate.

44.25    Sec. 63. Minnesota Statutes 2012, section 296A.01, subdivision 19, is amended to read:
44.26    Subd. 19. E85. "E85" means a petroleum product that is a blend of agriculturally
44.27derived denatured ethanol and gasoline or natural gasoline that typically contains not more
44.28than 85 percent ethanol by volume, but at a minimum must contain 60 51 percent ethanol by
44.29volume. For the purposes of this chapter, the energy content of E85 will be considered to be
44.3082,000 BTUs per gallon. E85 produced for use as a motor fuel in alternative fuel vehicles
44.31as defined in subdivision 5 must comply with ASTM specification D5798-07 D5798-11.
44.32EFFECTIVE DATE.This section is effective the day following final enactment.

44.33    Sec. 64. REVISOR'S INSTRUCTION.
45.1The revisor of statutes shall renumber Minnesota Statutes, section 18B.01,
45.2subdivision 4a, as subdivision 4b and correct any cross-references.

45.3    Sec. 65. REPEALER.
45.4Minnesota Statutes 2012, sections 18.91, subdivisions 3 and 5; 18B.07, subdivision
45.56; and 239.791, subdivision 1a, are repealed.

45.6ARTICLE 3
45.7ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS

45.8
Section 1. SUMMARY OF APPROPRIATIONS.
45.9    The amounts shown in this section summarize direct appropriations, by fund, made
45.10in this article.
45.11
2014
2015
Total
45.12
General
$
87,464,000
$
87,843,000
$
175,307,000
45.13
45.14
State Government Special
Revenue
75,000
75,000
150,000
45.15
Environmental
68,680,000
68,825,000
137,505,000
45.16
Natural Resources
91,724,000
94,184,000
185,908,000
45.17
Game and Fish
91,372,000
91,372,000
182,744,000
45.18
Remediation
10,596,000
10,596,000
21,192,000
45.19
Permanent School
200,000
200,000
400,000
45.20
Special Revenue
1,422,000
1,377,000
2,799,000
45.21
Total
$
351,533,000
$
354,472,000
$
706,005,000

45.22
Sec. 2. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.
45.23    The sums shown in the columns marked "Appropriations" are appropriated to the
45.24agencies and for the purposes specified in this article. The appropriations are from the
45.25general fund, or another named fund, and are available for the fiscal years indicated
45.26for each purpose. The figures "2014" and "2015" used in this article mean that the
45.27appropriations listed under them are available for the fiscal year ending June 30, 2014, or
45.28June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
45.29year 2015. "The biennium" is fiscal years 2014 and 2015. Appropriations for the fiscal
45.30year ending June 30, 2013, are effective the day following final enactment.
45.31
APPROPRIATIONS
45.32
Available for the Year
45.33
Ending June 30
45.34
2014
2015

46.1
Sec. 3. POLLUTION CONTROL AGENCY
46.2
Subdivision 1.Total Appropriation
$
85,806,000
$
85,931,000
46.3
Appropriations by Fund
46.4
2014
2015
46.5
General
5,133,000
5,158,000
46.6
46.7
State Government
Special Revenue
75,000
75,000
46.8
Special Revenue
1,422,000
1,377,000
46.9
Environmental
68,680,000
68,825,000
46.10
Remediation
10,496,000
10,496,000
46.11The amounts that may be spent for each
46.12purpose are specified in the following
46.13subdivisions.
46.14
Subd. 2.Water
24,697,000
24,697,000
46.15
Appropriations by Fund
46.16
2014
2015
46.17
General
3,737,000
3,737,000
46.18
46.19
State Government
Special Revenue
75,000
75,000
46.20
Environmental
20,885,000
20,885,000
46.21$1,378,000 the first year and $1,378,000 the
46.22second year are for water program operations.
46.23$1,959,000 the first year and $1,959,000
46.24the second year are for grants to delegated
46.25counties to administer the county feedlot
46.26program under Minnesota Statutes, section
46.27116.0711, subdivisions 2 and 3. By January
46.2815, 2016, the commissioner shall submit a
46.29report detailing the results achieved with
46.30this appropriation to the chairs and ranking
46.31minority members of the senate and house
46.32of representatives committees and divisions
46.33with jurisdiction over environment and
46.34natural resources policy and finance. Money
46.35remaining after the first year is available for
46.36the second year.
47.1$740,000 the first year and $740,000 the
47.2second year are from the environmental
47.3fund to address the need for continued
47.4increased activity in the areas of new
47.5technology review, technical assistance
47.6for local governments, and enforcement
47.7under Minnesota Statutes, sections 115.55
47.8to 115.58, and to complete the requirements
47.9of Laws 2003, chapter 128, article 1, section
47.10165.
47.11$400,000 the first year and $400,000
47.12the second year are for the clean water
47.13partnership program. Any unexpended
47.14balance in the first year does not cancel but
47.15is available in the second year. Priority shall
47.16be given to projects preventing impairments
47.17and degradation of lakes, rivers, streams,
47.18and groundwater according to Minnesota
47.19Statutes, section 114D.20, subdivision 2,
47.20clause (4).
47.21$664,000 the first year and $664,000 the
47.22second year are from the environmental
47.23fund for subsurface sewage treatment
47.24system (SSTS) program administration
47.25and community technical assistance and
47.26education, including grants and technical
47.27assistance to communities for water quality
47.28protection. Of this amount, $80,000 each
47.29year is for assistance to counties through
47.30grants for SSTS program administration.
47.31A county receiving a grant from this
47.32appropriation shall submit a report detailing
47.33the results achieved with the grant to the
47.34commissioner. The county is not eligible for
47.35funds from the second year appropriation
47.36until the commissioner receives the report.
48.1Any unexpended balance in the first year does
48.2not cancel but is available in the second year.
48.3$105,000 the first year and $105,000 the
48.4second year are from the environmental fund
48.5for registration of wastewater laboratories.
48.6$50,000 the first year is from the
48.7environmental fund for providing technical
48.8assistance to local units of government to
48.9address the water quality impacts from
48.10polycyclic aromatic hydrocarbons resulting
48.11from the use of coal tar products as regulated
48.12under Minnesota Statutes, section 116.201.
48.13$313,000 the first year and $313,000 the
48.14second year are from the environmental
48.15fund to be transferred to the commissioner
48.16of health to continue perfluorochemical
48.17biomonitoring in eastern metropolitan
48.18communities, as recommended by the
48.19Environmental Health Tracking and
48.20Biomonitoring Advisory Panel.
48.21Notwithstanding Minnesota Statutes, section
48.2216A.28, the appropriations encumbered on or
48.23before June 30, 2015, as grants or contracts
48.24for SSTS's, surface water and groundwater
48.25assessments, total maximum daily loads,
48.26storm water, and water quality protection in
48.27this subdivision are available until June 30,
48.282018.
48.29
Subd. 3.Air
15,031,000
15,201,000
48.30
Appropriations by Fund
48.31
2014
2015
48.32
Environmental
15,031,000
15,201,000
48.33$200,000 the first year and $200,000 the
48.34second year are from the environmental fund
49.1for a monitoring program under Minnesota
49.2Statutes, section 116.454.
49.3Up to $150,000 the first year and $150,000
49.4the second year may be transferred from the
49.5environmental fund to the small business
49.6environmental improvement loan account
49.7established in Minnesota Statutes, section
49.8116.993.
49.9$125,000 the first year and $125,000 the
49.10second year are from the environmental fund
49.11for monitoring ambient air for hazardous
49.12pollutants in the metropolitan area.
49.13$360,000 the first year and $360,000 the
49.14second year are from the environmental fund
49.15for systematic, localized monitoring efforts
49.16in the state that:
49.17(1) sample ambient air for a period of one to
49.18three months at various sites;
49.19(2) analyze the samples and compare the data
49.20to the agency's fixed air monitoring sites; and
49.21(3) determine whether significant localized
49.22differences exist.
49.23The commissioner, when selecting areas to
49.24monitor, shall give priority to areas where low
49.25income, indigenous American Indians, and
49.26communities of color are disproportionately
49.27impacted by pollution from highway traffic,
49.28air traffic, and industrial sources to assist
49.29with efforts to ensure environmental justice
49.30for those areas. For the purposes of this
49.31paragraph, "environmental justice" means the
49.32fair treatment of people of all races, cultures,
49.33and income levels in the development,
50.1adoption, implementation, and enforcement
50.2of environmental laws and policies.
50.3$540,000 the first year and $540,000 the
50.4second year are from the environmental
50.5fund for emission reduction activities and
50.6grants to small businesses and other nonpoint
50.7emission reduction efforts. Any unexpended
50.8balance in the first year does not cancel but is
50.9available in the second year.
50.10
Subd. 4.Land
17,412,000
17,412,000
50.11
Appropriations by Fund
50.12
2014
2015
50.13
Environmental
6,916,000
6,916,000
50.14
Remediation
10,496,000
10,496,000
50.15All money for environmental response,
50.16compensation, and compliance in the
50.17remediation fund not otherwise appropriated
50.18is appropriated to the commissioners of the
50.19Pollution Control Agency and agriculture
50.20for purposes of Minnesota Statutes, section
50.21115B.20, subdivision 2, clauses (1), (2),
50.22(3), (6), and (7). At the beginning of each
50.23fiscal year, the two commissioners shall
50.24jointly submit an annual spending plan
50.25to the commissioner of management and
50.26budget that maximizes the utilization of
50.27resources and appropriately allocates the
50.28money between the two departments. This
50.29appropriation is available until June 30, 2015.
50.30$3,616,000 the first year and $3,616,000 the
50.31second year are from the remediation fund for
50.32purposes of the leaking underground storage
50.33tank program to protect the land. These same
50.34annual amounts are transferred from the
50.35petroleum tank fund to the remediation fund.
51.1$252,000 the first year and $252,000 the
51.2second year are from the remediation fund
51.3for transfer to the commissioner of health for
51.4private water supply monitoring and health
51.5assessment costs in areas contaminated
51.6by unpermitted mixed municipal solid
51.7waste disposal facilities and drinking water
51.8advisories and public information activities
51.9for areas contaminated by hazardous releases.
51.10
51.11
Subd. 5.Environmental Assistance and
Cross-Media
28,271,000
28,201,000
51.12
Appropriations by Fund
51.13
2014
2015
51.14
Special Revenue
1,422,000
1,377,000
51.15
Environmental
25,848,000
25,823,000
51.16
General
1,001,000
1,001,000
51.17$14,450,000 the first year and $14,450,000
51.18the second year are from the environmental
51.19fund for SCORE grants to counties. Of
51.20this amount, $14,250,000 each year is for
51.21SCORE block grants and $200,000 each year
51.22is for competitive grants.
51.23$119,000 the first year and $119,000 the
51.24second year are from the environmental
51.25fund for environmental assistance grants
51.26or loans under Minnesota Statutes, section
51.27115A.0716. Any unencumbered grant and
51.28loan balances in the first year do not cancel
51.29but are available for grants and loans in the
51.30second year.
51.31$89,000 the first year and $89,000 the
51.32second year are from the environmental fund
51.33for duties related to harmful chemicals in
51.34products under Minnesota Statutes, sections
51.35116.9401 to 116.9407. Of this amount,
52.1$57,000 each year is transferred to the
52.2commissioner of health.
52.3$600,000 the first year and $600,000 the
52.4second year are from the environmental
52.5fund to address environmental health risks.
52.6Of this amount, $499,000 the first year and
52.7$499,000 the second year are for transfer to
52.8the Department of Health.
52.9$312,000 the first year and $312,000 the
52.10second year are from the general fund and
52.11$188,000 the first year and $188,000 the
52.12second year are from the environmental fund
52.13for Environmental Quality Board operations
52.14and support.
52.15$75,000 the first year and $50,000 the second
52.16year are from the environmental fund for
52.17transfer to the Office of Administrative
52.18Hearings to establish sanitary districts.
52.19$1,422,000 the first year and $1,377,000 the
52.20second year are from the special revenue
52.21fund for the Environmental Quality Board to
52.22lead an interagency team to provide technical
52.23assistance regarding the mining, processing,
52.24and transporting of silica sand and develop
52.25the model standards and criteria required
52.26under Minnesota Statutes, section 116C.99.
52.27Of this amount, $266,000 the first year and
52.28$263,000 the second year are for transfer to
52.29the commissioner of health, $447,000 the
52.30first year and $420,000 the second year are
52.31for transfer to the commissioner of natural
52.32resources, $5,000 the first year and $10,000
52.33the second year are for transfer to the Board
52.34of Water and Soil Resources, and $150,000
52.35the first year and $140,000 the second year
53.1are for transfer to the commissioner of
53.2transportation. The members of the silica
53.3sand technical assistance team representing
53.4state entities shall be existing state employees
53.5whenever possible. The costs of the technical
53.6assistance team members directly related to
53.7and necessary for the silica sand technical
53.8assistance team may be paid for from this
53.9appropriation.
53.10$5,000 the first year is from the environmental
53.11fund to prepare and submit a report to the
53.12chairs and ranking minority members of
53.13the senate and house of representatives
53.14committees and divisions with jurisdiction
53.15over the environment and natural resources,
53.16by December 1, 2013, with recommendations
53.17for a statewide recycling refund program
53.18for beverage containers that achieves an 80
53.19percent recycling rate.
53.20All money deposited in the environmental
53.21fund for the metropolitan solid waste
53.22landfill fee in accordance with Minnesota
53.23Statutes, section 473.843, and not otherwise
53.24appropriated, is appropriated for the purposes
53.25of Minnesota Statutes, section 473.844.
53.26Notwithstanding Minnesota Statutes, section
53.2716A.28, the appropriations encumbered on
53.28or before June 30, 2015, as contracts or
53.29grants for surface water and groundwater
53.30assessments; environmental assistance
53.31awarded under Minnesota Statutes, section
53.32115A.0716; technical and research assistance
53.33under Minnesota Statutes, section 115A.152;
53.34technical assistance under Minnesota
53.35Statutes, section 115A.52; and pollution
54.1prevention assistance under Minnesota
54.2Statutes, section 115D.04, are available until
54.3June 30, 2017.
54.4
Subd. 6.Administrative Support
395,000
420,000
54.5The commissioner shall submit the agency's
54.6budget for fiscal years 2016 and 2017 to
54.7the legislature in a manner that allows
54.8the legislature and public to understand
54.9the outcomes that will be achieved with
54.10the appropriations. The budget must be
54.11structured so that a significantly larger
54.12portion of the revenues from solid waste
54.13taxes are spent on solid waste activities.

54.14
Sec. 4. NATURAL RESOURCES
54.15
Subdivision 1.Total Appropriation
$
236,783,000
$
239,514,000
54.16
Appropriations by Fund
54.17
2014
2015
54.18
General
59,707,000
59,978,000
54.19
Natural Resources
85,404,000
87,864,000
54.20
Game and Fish
91,372,000
91,372,000
54.21
Remediation
100,000
100,000
54.22
Permanent School
200,000
200,000
54.23The amounts that may be spent for each
54.24purpose are specified in the following
54.25subdivisions.
54.26
54.27
Subd. 2.Land and Mineral Resources
Management
6,073,000
6,073,000
54.28
Appropriations by Fund
54.29
2014
2015
54.30
General
722,000
722,000
54.31
Natural Resources
3,700,000
3,700,000
54.32
Game and Fish
1,451,000
1,451,000
54.33
Permanent School
200,000
200,000
54.34$68,000 the first year and $68,000 the
54.35second year are for minerals cooperative
54.36environmental research, of which $34,000
55.1the first year and $34,000 the second year are
55.2available only as matched by $1 of nonstate
55.3money for each $1 of state money. The
55.4match may be cash or in-kind.
55.5$251,000 the first year and $251,000 the
55.6second year are for iron ore cooperative
55.7research. Of this amount, $200,000 each year
55.8is from the minerals management account
55.9in the natural resources fund. $175,000 the
55.10first year and $175,000 the second year are
55.11available only as matched by $1 of nonstate
55.12money for each $1 of state money. The match
55.13may be cash or in-kind. Any unencumbered
55.14balance from the first year does not cancel
55.15and is available in the second year.
55.16$2,779,000 the first year and $2,779,000
55.17the second year are from the minerals
55.18management account in the natural resources
55.19fund for use as provided in Minnesota
55.20Statutes, section 93.2236, paragraph (c),
55.21for mineral resource management, projects
55.22to enhance future mineral income, and
55.23projects to promote new mineral resource
55.24opportunities.
55.25$200,000 the first year and $200,000 the
55.26second year are from the state forest suspense
55.27account in the permanent school fund to
55.28accelerate land exchanges, land sales, and
55.29commercial leasing of school trust lands and
55.30to identify, evaluate, and lease construction
55.31aggregate located on school trust lands. This
55.32appropriation is to be used for securing
55.33long-term economic return from the
55.34school trust lands consistent with fiduciary
56.1responsibilities and sound natural resources
56.2conservation and management principles.
56.3$145,000 the first year and $145,000
56.4the second year are from the minerals
56.5management account in the natural resources
56.6fund for transfer to the commissioner of
56.7administration for the school trust lands
56.8director.
56.9The appropriations in Laws 2007, chapter 57,
56.10article 1, section 4, subdivision 2, as amended
56.11by Laws 2009, chapter 37, article 1, section
56.1260, and as extended in Laws 2011, First
56.13Special Session chapter 2, article 1, section 4,
56.14subdivision 2, for support of the land records
56.15management system are available until spent.
56.16
Subd. 3.Ecological and Water Resources
29,227,000
31,987,000
56.17
Appropriations by Fund
56.18
2014
2015
56.19
General
12,262,000
12,262,000
56.20
Natural Resources
12,902,000
15,662,000
56.21
Game and Fish
4,063,000
4,063,000
56.22$2,942,000 the first year and $2,942,000 the
56.23second year are from the invasive species
56.24account in the natural resources fund and
56.25$3,706,000 the first year and $3,706,000 the
56.26second year are from the general fund for
56.27management, public awareness, assessment
56.28and monitoring research, and water access
56.29inspection to prevent the spread of invasive
56.30species; management of invasive plants in
56.31public waters; and management of terrestrial
56.32invasive species on state-administered lands.
56.33Of this amount, up to $200,000 each year
56.34is from the invasive species account in the
56.35natural resources fund for liability insurance
56.36coverage for Asian carp deterrent barriers.
57.1$5,000,000 the first year and $5,000,000 the
57.2second year are from the water management
57.3account in the natural resources fund for only
57.4the purposes specified in Minnesota Statutes,
57.5section 103G.27, subdivision 2. Of this
57.6amount, $190,000 the first year and $170,000
57.7the second year are for enhancements to
57.8the online system for water appropriation
57.9permits to account for preliminary approval
57.10requirements and related water appropriation
57.11permit activities.
57.12$53,000 the first year and $53,000 the
57.13second year are for a grant to the Mississippi
57.14Headwaters Board for up to 50 percent of the
57.15cost of implementing the comprehensive plan
57.16for the upper Mississippi within areas under
57.17the board's jurisdiction. By January 15, 2016,
57.18the board shall submit a report detailing the
57.19results achieved with this appropriation to
57.20the commissioner and the chairs and ranking
57.21minority members of the senate and house
57.22of representatives committees and divisions
57.23with jurisdiction over environment and
57.24natural resources policy and finance.
57.25$5,000 the first year and $5,000 the second
57.26year are for payment to the Leech Lake Band
57.27of Chippewa Indians to implement the band's
57.28portion of the comprehensive plan for the
57.29upper Mississippi.
57.30$264,000 the first year and $264,000 the
57.31second year are for grants for up to 50
57.32percent of the cost of implementation of
57.33the Red River mediation agreement. The
57.34commissioner shall submit a report by
57.35January 15, 2015, to the chairs of the
58.1legislative committees having primary
58.2jurisdiction over environment and natural
58.3resources policy and finance on the
58.4accomplishments achieved with the grants.
58.5$1,643,000 the first year and $1,643,000
58.6the second year are from the heritage
58.7enhancement account in the game and
58.8fish fund for only the purposes specified
58.9in Minnesota Statutes, section 297A.94,
58.10paragraph (e), clause (1).
58.11$1,223,000 the first year and $1,223,000 the
58.12second year are from the nongame wildlife
58.13management account in the natural resources
58.14fund for the purpose of nongame wildlife
58.15management. Notwithstanding Minnesota
58.16Statutes, section 290.431, $100,000 the first
58.17year and $100,000 the second year may
58.18be used for nongame wildlife information,
58.19education, and promotion.
58.20$2,500,000 the first year and $5,260,000 the
58.21second year are from the water management
58.22account in the natural resources fund for the
58.23following activities:
58.24(1) installation of additional groundwater
58.25monitoring wells;
58.26(2) increased financial reimbursement
58.27and technical support to soil and water
58.28conservation districts or other local units
58.29of government for groundwater level
58.30monitoring;
58.31(3) additional surface water monitoring and
58.32analysis, including installation of monitoring
58.33gauges;
59.1(4) additional groundwater analysis to
59.2assist with water appropriation permitting
59.3decisions;
59.4(5) additional permit application review
59.5incorporating surface water and groundwater
59.6technical analysis;
59.7(6) enhancement of precipitation data and
59.8analysis to improve the use of irrigation;
59.9(7) enhanced information technology,
59.10including electronic permitting and
59.11integrated data systems; and
59.12(8) increased compliance and monitoring.
59.13$1,000,000 the first year and $1,000,000
59.14the second year are for grants to local units
59.15of government and tribes to prevent the
59.16spread of aquatic invasive species, including
59.17inspection and decontamination programs.
59.18The commissioner, in cooperation with the
59.19commissioner of agriculture, shall enforce
59.20compliance with aquatic plant management
59.21requirements regulating the control of
59.22aquatic plants with pesticides and removal of
59.23aquatic plants by mechanical means under
59.24Minnesota Statutes, section 103G.615.
59.25
Subd. 4.Forest Management
34,310,000
34,260,000
59.26
Appropriations by Fund
59.27
2014
2015
59.28
General
21,900,000
21,850,000
59.29
Natural Resources
11,123,000
11,123,000
59.30
Game and Fish
1,287,000
1,287,000
59.31$7,145,000 the first year and $7,145,000
59.32the second year are for prevention,
59.33presuppression, and suppression costs of
59.34emergency firefighting and other costs
59.35incurred under Minnesota Statutes, section
60.188.12. The amount necessary to pay for
60.2presuppression and suppression costs during
60.3the biennium is appropriated from the general
60.4fund.
60.5By January 15 of each year, the commissioner
60.6of natural resources shall submit a report to
60.7the chairs and ranking minority members
60.8of the house of representatives and senate
60.9committees and divisions having jurisdiction
60.10over environment and natural resources
60.11finance, identifying all firefighting costs
60.12incurred and reimbursements received in
60.13the prior fiscal year. These appropriations
60.14may not be transferred. Any reimbursement
60.15of firefighting expenditures made to the
60.16commissioner from any source other than
60.17federal mobilizations shall be deposited into
60.18the general fund.
60.19$11,123,000 the first year and $11,123,000
60.20the second year are from the forest
60.21management investment account in the
60.22natural resources fund for only the purposes
60.23specified in Minnesota Statutes, section
60.2489.039, subdivision 2.
60.25$1,287,000 the first year and $1,287,000
60.26the second year are from the game and fish
60.27fund to advance ecological classification
60.28systems (ECS) scientific management tools
60.29for forest and invasive species management.
60.30This appropriation is from revenue deposited
60.31in the game and fish fund under Minnesota
60.32Statutes, section 297A.94, paragraph (e),
60.33clause (1).
60.34$580,000 the first year and $580,000 the
60.35second year are for the Forest Resources
61.1Council for implementation of the
61.2Sustainable Forest Resources Act.
61.3$250,000 the first year and $250,000 the
61.4second year are for the FORIST system.
61.5$50,000 the first year is for development of
61.6a plan and recommendations, in consultation
61.7with the University of Minnesota,
61.8Department of Forest Resources, on utilizing
61.9the state forest nurseries to: ensure the
61.10long-term availability of ecologically
61.11appropriate and genetically diverse native
61.12forest seed and seedlings to support state
61.13conservation projects and initiatives;
61.14protect the genetic fitness and resilience of
61.15native forest ecosystems; and support tree
61.16improvement research to address evolving
61.17pressures such as invasive species and
61.18climate change. By December 31, 2013,
61.19the commissioner shall submit a report with
61.20the plan and recommendations to the chairs
61.21and ranking minority members of the senate
61.22and house of representatives committees
61.23and divisions with jurisdiction over natural
61.24resources. The report shall address funding
61.25to improve state forest nursery and tree
61.26improvement capabilities. The report shall
61.27also provide updated recommendations from
61.28those contained in the budget and financial
61.29plan required under Laws 2011, First Special
61.30Session chapter 2, article 4, section 30.
61.31
Subd. 5.Parks and Trails Management
68,202,000
67,902,000
61.32
Appropriations by Fund
61.33
2014
2015
61.34
General
20,130,000
20,130,000
61.35
Natural Resources
45,813,000
45,513,000
61.36
Game and Fish
2,259,000
2,259,000
62.1$1,075,000 the first year and $1,075,000 the
62.2second year are from the water recreation
62.3account in the natural resources fund for
62.4enhancing public water access facilities.
62.5This appropriation is not available until the
62.6commissioner develops and implements
62.7design standards and best management
62.8practices for public water access sites that
62.9maintain and improve water quality by
62.10avoiding shoreline erosion and runoff.
62.11$300,000 the first year is from the water
62.12recreation account in the natural resources
62.13fund for construction of restroom facilities
62.14at the public water access for Crane Lake
62.15on Handberg Road. This is a onetime
62.16appropriation and is available until the
62.17construction is completed.
62.18$5,740,000 the first year and $5,740,000 the
62.19second year are from the natural resources
62.20fund for state trail, park, and recreation area
62.21operations. This appropriation is from the
62.22revenue deposited in the natural resources
62.23fund under Minnesota Statutes, section
62.24297A.94, paragraph (e), clause (2).
62.25$1,005,000 the first year and $1,005,000 the
62.26second year are from the natural resources
62.27fund for trail grants to local units of
62.28government on land to be maintained for at
62.29least 20 years for the purposes of the grants.
62.30This appropriation is from the revenue
62.31deposited in the natural resources fund
62.32under Minnesota Statutes, section 297A.94,
62.33paragraph (e), clause (4). Any unencumbered
62.34balance does not cancel at the end of the first
62.35year and is available for the second year.
63.1$8,424,000 the first year and $8,424,000
63.2the second year are from the snowmobile
63.3trails and enforcement account in the
63.4natural resources fund for the snowmobile
63.5grants-in-aid program. Any unencumbered
63.6balance does not cancel at the end of the first
63.7year and is available for the second year.
63.8$1,460,000 the first year and $1,460,000 the
63.9second year are from the natural resources
63.10fund for the off-highway vehicle grants-in-aid
63.11program. Of this amount, $1,210,000 each
63.12year is from the all-terrain vehicle account;
63.13$150,000 each year is from the off-highway
63.14motorcycle account; and $100,000 each year
63.15is from the off-road vehicle account. Any
63.16unencumbered balance does not cancel at the
63.17end of the first year and is available for the
63.18second year.
63.19$75,000 the first year and $75,000 the second
63.20year are from the cross-country ski account
63.21in the natural resources fund for grooming
63.22and maintaining cross-country ski trails in
63.23state parks, trails, and recreation areas.
63.24$350,000 the first year and $350,000 the
63.25second year are for prairie restorations in
63.26state parks and trails located in various parts
63.27of the state that are visible to the public under
63.28the pollinator habitat program established
63.29under Minnesota Statutes, section 84.973.
63.30$250,000 the first year and $250,000 the
63.31second year are from the state land and
63.32water conservation account (LAWCON)
63.33in the natural resources fund for priorities
63.34established by the commissioner for eligible
63.35state projects and administrative and
64.1planning activities consistent with Minnesota
64.2Statutes, section 84.0264, and the federal
64.3Land and Water Conservation Fund Act.
64.4Any unencumbered balance does not cancel
64.5at the end of the first year and is available for
64.6the second year.
64.7The appropriation in Laws 2009, chapter
64.837, article 1, section 4, subdivision 5, from
64.9the natural resources fund from the revenue
64.10deposited under Minnesota Statutes, section
64.11297A.94, paragraph (e), clause (4), for local
64.12grants is available until June 30, 2014.
64.13
Subd. 6.Fish and Wildlife Management
62,775,000
62,775,000
64.14
Appropriations by Fund
64.15
2014
2015
64.16
Natural Resources
1,906,000
1,906,000
64.17
Game and Fish
60,869,000
60,869,000
64.18$8,167,000 the first year and $8,167,000
64.19the second year are from the heritage
64.20enhancement account in the game and fish
64.21fund only for activities specified in Minnesota
64.22Statutes, section 297A.94, paragraph (e),
64.23clause (1). Notwithstanding Minnesota
64.24Statutes, section 297A.94, five percent of
64.25this appropriation may be used for expanding
64.26hunter and angler recruitment and retention
64.27activities that emphasize the recruitment and
64.28retention of underrepresented groups.
64.29Notwithstanding Minnesota Statutes, section
64.3084.943, $13,000 the first year and $13,000
64.31the second year from the critical habitat
64.32private sector matching account may be used
64.33to publicize the critical habitat license plate
64.34match program.
64.35
Subd. 7.Enforcement
35,558,000
35,558,000
65.1
Appropriations by Fund
65.2
2014
2015
65.3
General
4,375,000
4,375,000
65.4
Natural Resources
9,640,000
9,640,000
65.5
Game and Fish
21,443,000
21,443,000
65.6
Remediation
100,000
100,000
65.7$1,638,000 the first year and $1,638,000 the
65.8second year are from the general fund for
65.9enforcement efforts to prevent the spread of
65.10aquatic invasive species.
65.11$1,450,000 the first year and $1,450,000
65.12the second year are from the heritage
65.13enhancement account in the game and
65.14fish fund for only the purposes specified
65.15in Minnesota Statutes, section 297A.94,
65.16paragraph (e), clause (1).
65.17$250,000 the first year and $250,000 the
65.18second year are for the conservation officer
65.19pre-employment education program. Of this
65.20amount, $30,000 each year is from the water
65.21recreation account, $13,000 each year is
65.22from the snowmobile account, and $20,000
65.23each year is from the all-terrain vehicle
65.24account in the natural resources fund; and
65.25$187,000 each year is from the game and fish
65.26fund, of which $17,000 each year is from
65.27revenue deposited to the game and fish fund
65.28under Minnesota Statutes, section 297A.94,
65.29paragraph (e), clause (1).
65.30$1,082,000 the first year and $1,082,000 the
65.31second year are from the water recreation
65.32account in the natural resources fund for
65.33grants to counties for boat and water safety.
65.34Any unencumbered balance does not cancel
65.35at the end of the first year and is available for
65.36the second year.
66.1$315,000 the first year and $315,000 the
66.2second year are from the snowmobile
66.3trails and enforcement account in the
66.4natural resources fund for grants to local
66.5law enforcement agencies for snowmobile
66.6enforcement activities. Any unencumbered
66.7balance does not cancel at the end of the first
66.8year and is available for the second year.
66.9$250,000 the first year and $250,000 the
66.10second year are from the all-terrain vehicle
66.11account for grants to qualifying organizations
66.12to assist in safety and environmental
66.13education and monitoring trails on public
66.14lands under Minnesota Statutes, section
66.1584.9011. Grants issued under this paragraph:
66.16(1) must be issued through a formal
66.17agreement with the organization; and
66.18(2) must not be used as a substitute for
66.19traditional spending by the organization.
66.20By December 15 each year, an organization
66.21receiving a grant under this paragraph shall
66.22report to the commissioner with details on
66.23expenditures and outcomes from the grant.
66.24Of this appropriation, $25,000 each year
66.25is for administration of these grants. Any
66.26unencumbered balance does not cancel at the
66.27end of the first year and is available for the
66.28second year.
66.29$510,000 the first year and $510,000
66.30the second year are from the natural
66.31resources fund for grants to county law
66.32enforcement agencies for off-highway
66.33vehicle enforcement and public education
66.34activities based on off-highway vehicle use
66.35in the county. Of this amount, $498,000 each
66.36year is from the all-terrain vehicle account;
67.1$11,000 each year is from the off-highway
67.2motorcycle account; and $1,000 each year
67.3is from the off-road vehicle account. The
67.4county enforcement agencies may use
67.5money received under this appropriation
67.6to make grants to other local enforcement
67.7agencies within the county that have a high
67.8concentration of off-highway vehicle use.
67.9Of this appropriation, $25,000 each year
67.10is for administration of these grants. Any
67.11unencumbered balance does not cancel at the
67.12end of the first year and is available for the
67.13second year.
67.14$719,000 the first year and $719,000 the
67.15second year are for development and
67.16maintenance of a records management
67.17system capable of providing real time data
67.18with global positioning system information.
67.19Of this amount, $480,000 each year is from
67.20the general fund, $119,000 each year is
67.21from the game and fish fund, and $120,000
67.22each year is from the heritage enhancement
67.23account in the game and fish fund.
67.24
Subd. 8.Operations Support
638,000
959,000
67.25
Appropriations by Fund
67.26
2014
2015
67.27
General Fund
318,000
639,000
67.28
Natural Resources
320,000
320,000
67.29$320,000 the first year and $320,000 the
67.30second year are from the natural resources
67.31fund for grants to be divided equally between
67.32the city of St. Paul for the Como Park Zoo
67.33and Conservatory and the city of Duluth
67.34for the Duluth Zoo. This appropriation
67.35is from the revenue deposited to the fund
68.1under Minnesota Statutes, section 297A.94,
68.2paragraph (e), clause (5).
68.3$300,000 the first year and $300,000 the
68.4second year are from the special revenue fund
68.5to improve data analytics. The commissioner
68.6may bill the divisions of the agency an
68.7appropriate share of costs associated with
68.8this project. Any information technology
68.9development, support, or costs necessary for
68.10this project shall be incorporated into the
68.11agency's service level agreement with and
68.12paid to the Office of Enterprise Technology.

68.13
68.14
Sec. 5. BOARD OF WATER AND SOIL
RESOURCES
$
13,472,000
$
13,502,000
68.15$3,423,000 the first year and $3,423,000 the
68.16second year are for natural resources block
68.17grants to local governments. Grants must be
68.18matched with a combination of local cash or
68.19in-kind contributions. The base grant portion
68.20related to water planning must be matched
68.21by an amount as specified by Minnesota
68.22Statutes, section 103B.3369. The board may
68.23reduce the amount of the natural resources
68.24block grant to a county by an amount equal to
68.25any reduction in the county's general services
68.26allocation to a soil and water conservation
68.27district from the county's previous year
68.28allocation when the board determines that
68.29the reduction was disproportionate.
68.30$3,116,000 the first year and $3,116,000
68.31the second year are for grants requested
68.32by soil and water conservation districts for
68.33general purposes, nonpoint engineering, and
68.34implementation of the reinvest in Minnesota
68.35reserve program. Upon approval of the
69.1board, expenditures may be made from these
69.2appropriations for supplies and services
69.3benefiting soil and water conservation
69.4districts. Any district requesting a grant
69.5under this paragraph shall maintain a Web
69.6site that publishes, at a minimum, its annual
69.7report, annual audit, annual budget, and
69.8meeting notices and minutes.
69.9$1,602,000 the first year and $1,662,000 the
69.10second year are for the following cost-share
69.11programs:
69.12(1) $302,000 each year is for feedlot water
69.13quality grants for feedlots under 300 animal
69.14units in areas where there are impaired
69.15waters;
69.16(2) $1,200,000 each year is for soil and water
69.17conservation district cost-sharing contracts
69.18for erosion control, nutrient and manure
69.19management, vegetative buffers, and water
69.20quality management; and
69.21(3) $100,000 each year is for county
69.22cooperative weed management programs and
69.23to restore native plants in selected invasive
69.24species management sites by providing local
69.25native seeds and plants to landowners for
69.26implementation.
69.27The board shall submit a report to the
69.28commissioner of the Pollution Control
69.29Agency on the status of subsurface sewage
69.30treatment systems in order to ensure a single,
69.31comprehensive inventory of the systems for
69.32planning purposes.
69.33$386,000 the first year and $386,000
69.34the second year are for implementation,
70.1enforcement, and oversight of the Wetland
70.2Conservation Act.
70.3$166,000 the first year and $166,000
70.4the second year are to provide technical
70.5assistance to local drainage management
70.6officials and for the costs of the Drainage
70.7Work Group.
70.8$100,000 the first year and $100,000
70.9the second year are for a grant to the
70.10Red River Basin Commission for water
70.11quality and floodplain management,
70.12including administration of programs. This
70.13appropriation must be matched by nonstate
70.14funds. If the appropriation in either year is
70.15insufficient, the appropriation in the other
70.16year is available for it.
70.17$120,000 the first year and $60,000
70.18the second year are for grants to Area II
70.19Minnesota River Basin Projects for floodplain
70.20management. The area shall transition to a
70.21watershed district by July 1, 2015.
70.22Notwithstanding Minnesota Statutes, section
70.23103C.501, the board may shift cost-share
70.24funds in this section and may adjust the
70.25technical and administrative assistance
70.26portion of the grant funds to leverage
70.27federal or other nonstate funds or to address
70.28high-priority needs identified in local water
70.29management plans or comprehensive water
70.30management plans.
70.31$450,000 the first year and $450,000 the
70.32second year are for assistance and grants to
70.33local governments to transition local water
70.34management plans to a watershed approach
71.1as provided for in Minnesota Statutes,
71.2chapters 103B, 103C, 103D, and 114D.
71.3$125,000 the first year and $125,000 the
71.4second year are to implement internal control
71.5policies and provide related oversight and
71.6accountability for agency programs.
71.7$310,000 the first year and $310,000 the
71.8second year are to evaluate performance,
71.9financial, and activity information for local
71.10water management entities as prescribed in
71.11Minnesota Statutes, section 103B.102.
71.12The appropriations for grants in this
71.13section are available until expended. If an
71.14appropriation for grants in either year is
71.15insufficient, the appropriation in the other
71.16year is available for it.

71.17
Sec. 6. METROPOLITAN COUNCIL
$
8,890,000
$
8,890,000
71.18
Appropriations by Fund
71.19
2014
2015
71.20
General
3,220,000
3,220,000
71.21
Natural Resources
5,670,000
5,670,000
71.22$2,870,000 the first year and $2,870,000 the
71.23second year are for metropolitan area regional
71.24parks operation and maintenance according
71.25to Minnesota Statutes, section 473.351.
71.26$5,670,000 the first year and $5,670,000 the
71.27second year are from the natural resources
71.28fund for metropolitan area regional parks
71.29and trails maintenance and operations. This
71.30appropriation is from the revenue deposited
71.31in the natural resources fund under Minnesota
71.32Statutes, section 297A.94, paragraph (e),
71.33clause (3).
72.1$350,000 the first year and $350,000 the
72.2second year are for grants to implementing
72.3agencies to acquire and install solar energy
72.4panels made in Minnesota in metropolitan
72.5regional parks and trails. An implementing
72.6agency receiving a grant under this
72.7appropriation shall provide signage near
72.8the solar equipment installed that provides
72.9education on solar energy.

72.10
72.11
Sec. 7. CONSERVATION CORPS
MINNESOTA
$
945,000
$
945,000
72.12
Appropriations by Fund
72.13
2014
2015
72.14
General
455,000
455,000
72.15
Natural Resources
490,000
490,000
72.16Conservation Corps Minnesota may receive
72.17money appropriated from the natural
72.18resources fund under this section only
72.19as provided in an agreement with the
72.20commissioner of natural resources.

72.21
Sec. 8. ZOOLOGICAL BOARD
$
5,637,000
$
5,690,000
72.22
Appropriations by Fund
72.23
2014
2015
72.24
General
5,477,000
5,530,000
72.25
Natural Resources
160,000
160,000
72.26$160,000 the first year and $160,000 the
72.27second year are from the natural resources
72.28fund from the revenue deposited under
72.29Minnesota Statutes, section 297A.94,
72.30paragraph (e), clause (5).

73.1ARTICLE 4
73.2ENVIRONMENT AND NATURAL RESOURCES POLICY

73.3    Section 1. Minnesota Statutes 2012, section 84.027, is amended by adding a
73.4subdivision to read:
73.5    Subd. 19. Federal law compliance. Notwithstanding any law to the contrary,
73.6the commissioner may establish, by written order, policies for the use and operation of
73.7other power-driven mobility devices, as defined under Code of Federal Regulations, title
73.828, section 35.104, on lands and in facilities administered by the commissioner for the
73.9purposes of implementing the Americans with Disabilities Act, United States Code, title
73.1042, section 12101 et seq. These policies are exempt from the rulemaking provisions of
73.11chapter 14 and section 14.386 does not apply.

73.12    Sec. 2. [84.633] EXCHANGE OF ROAD EASEMENTS.
73.13    Subdivision 1. Authority. The commissioner of natural resources, on behalf of
73.14the state, may convey a road easement according to this section for access across state
73.15land under the commissioner's jurisdiction in exchange for a road easement for access to
73.16property owned by the United States, the state of Minnesota or any of its subdivisions, or a
73.17private party. The exercise of the easement across state land must not cause significant
73.18adverse environmental or natural resources management impacts.
73.19    Subd. 2. Substantially equal acres. The acres covered by the state easement
73.20conveyed by the commissioner must be substantially equal to the acres covered by the
73.21easement being received by the commissioner. For purposes of this section, "substantially
73.22equal" means that the acres do not differ by more than 20 percent. The commissioner's
73.23finding of substantially equal acres is in lieu of an appraisal or other determination of
73.24value of the lands.
73.25    Subd. 3. School trust lands. If the commissioner conveys a road easement over
73.26school trust land to a nongovernmental entity, the term of the road easement is limited
73.27to 50 years. The easement exchanged with the state may be limited to 50 years or may
73.28be perpetual.
73.29    Subd. 4. Terms and conditions. The commissioner may impose terms and
73.30conditions of use as necessary and appropriate under the circumstances. The state may
73.31accept an easement with similar terms and conditions as the state easement.
73.32    Subd. 5. Survey. If the commissioner determines that a survey is required, the
73.33governmental unit or private landowner shall pay to the commissioner a survey fee of not
73.34less than one half of the cost of the survey as determined by the commissioner.
74.1    Subd. 6. Application fee. When a private landowner or governmental unit, except
74.2the state, presents to the commissioner an offer to exchange road easements, the private
74.3landowner or governmental unit shall pay an application fee as provided under section
74.484.63 to cover reasonable costs for reviewing the application and preparing the easements.
74.5    Subd. 7. Title. If the commissioner determines it is necessary to obtain an opinion
74.6as to the title of the land being encumbered by the easement that will be received by the
74.7commissioner, the governmental unit or private landowner shall submit an abstract of title
74.8or other title information sufficient to determine possession of the land, improvements,
74.9liens, encumbrances, and other matters affecting title.
74.10    Subd. 8. Disposition of fees. (a) Any fee paid under subdivision 5 must be credited
74.11to the account from which expenses are or will be paid and the fee is appropriated for the
74.12expenditures in the same manner as other money in the account.
74.13(b) Any fee paid under subdivision 6 must be deposited in the land management
74.14account in the natural resources fund and is appropriated to the commissioner to cover the
74.15reasonable costs incurred for preparing and issuing the state road easement and accepting
74.16the road easement from the private landowner or governmental entity.

74.17    Sec. 3. Minnesota Statutes 2012, section 84.82, is amended by adding a subdivision to
74.18read:
74.19    Subd. 2a. Limited nontrail use registration. A snowmobile may be registered for
74.20limited nontrail use. A snowmobile registered under this subdivision may be used solely
74.21for transportation on the frozen surface of public water for purposes of ice fishing and may
74.22not otherwise be operated on a state or grant-in-aid snowmobile trail. The fee for a limited
74.23nontrail use registration is $45 for three years. A limited nontrail use registration is not
74.24transferable. In addition to other penalties prescribed by law, the penalty for violation of
74.25this subdivision is immediate revocation of the limited nontrail use registration. The
74.26commissioner shall ensure that the registration sticker provided for limited nontrail use is
74.27of a different color and is distinguishable from other snowmobile registration and state
74.28trail stickers provided.

74.29    Sec. 4. Minnesota Statutes 2012, section 84.922, is amended by adding a subdivision
74.30to read:
74.31    Subd. 14. No registration weekend. The commissioner shall designate by rule one
74.32weekend each year when, notwithstanding subdivision 1, an all-terrain vehicle may be
74.33operated on state and grant-in-aid all-terrain vehicle trails without a registration issued
75.1under this section. Nonresidents may participate during the designated weekend without a
75.2state trail pass required under section 84.9275.
75.3EFFECTIVE DATE.This section is effective the day following final enactment.

75.4    Sec. 5. Minnesota Statutes 2012, section 84.9256, subdivision 1, is amended to read:
75.5    Subdivision 1. Prohibitions on youthful operators. (a) Except for operation on
75.6public road rights-of-way that is permitted under section 84.928 and as provided under
75.7paragraph (j), a driver's license issued by the state or another state is required to operate an
75.8all-terrain vehicle along or on a public road right-of-way.
75.9    (b) A person under 12 years of age shall not:
75.10    (1) make a direct crossing of a public road right-of-way;
75.11    (2) operate an all-terrain vehicle on a public road right-of-way in the state; or
75.12    (3) operate an all-terrain vehicle on public lands or waters, except as provided in
75.13paragraph (f).
75.14    (c) Except for public road rights-of-way of interstate highways, a person 12 years
75.15of age but less than 16 years may make a direct crossing of a public road right-of-way
75.16of a trunk, county state-aid, or county highway or operate on public lands and waters or
75.17state or grant-in-aid trails, only if that person possesses a valid all-terrain vehicle safety
75.18certificate issued by the commissioner and is accompanied by a person 18 years of age or
75.19older who holds a valid driver's license.
75.20    (d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years
75.21old, but less than 16 18 years old, must:
75.22    (1) successfully complete the safety education and training program under section
75.2384.925 , subdivision 1, including a riding component; and
75.24    (2) be able to properly reach and control the handle bars and reach the foot pegs
75.25while sitting upright on the seat of the all-terrain vehicle.
75.26    (e) A person at least 11 years of age may take the safety education and training
75.27program and may receive an all-terrain vehicle safety certificate under paragraph (d), but
75.28the certificate is not valid until the person reaches age 12.
75.29    (f) A person at least ten years of age but under 12 years of age may operate an
75.30all-terrain vehicle with an engine capacity up to 90cc on public lands or waters if
75.31accompanied by a parent or legal guardian.
75.32    (g) A person under 15 years of age shall not operate a class 2 all-terrain vehicle.
75.33    (h) A person under the age of 16 may not operate an all-terrain vehicle on public
75.34lands or waters or on state or grant-in-aid trails if the person cannot properly reach and
76.1control the handle bars and reach the foot pegs while sitting upright on the seat of the
76.2all-terrain vehicle.
76.3(i) Notwithstanding paragraph (c), a nonresident at least 12 years old, but less than
76.416 years old, may make a direct crossing of a public road right-of-way of a trunk, county
76.5state-aid, or county highway or operate an all-terrain vehicle on public lands and waters
76.6or state or grant-in-aid trails if:
76.7(1) the nonresident youth has in possession evidence of completing an all-terrain
76.8safety course offered by the ATV Safety Institute or another state as provided in section
76.984.925 , subdivision 3; and
76.10(2) the nonresident youth is accompanied by a person 18 years of age or older who
76.11holds a valid driver's license.
76.12(j) A person 12 years of age but less than 16 years of age may operate an all-terrain
76.13vehicle on the bank, slope, or ditch of a public road right-of-way as permitted under
76.14section 84.928 if the person:
76.15(1) possesses a valid all-terrain vehicle safety certificate issued by the commissioner;
76.16and
76.17(2) is accompanied by a parent or legal guardian on a separate all-terrain vehicle.

76.18    Sec. 6. Minnesota Statutes 2012, section 84.928, subdivision 1, is amended to read:
76.19    Subdivision 1. Operation on roads and rights-of-way. (a) Unless otherwise
76.20allowed in sections 84.92 to 84.928, a person shall not operate an all-terrain vehicle in
76.21this state along or on the roadway, shoulder, or inside bank or slope of a public road
76.22right-of-way of a trunk, county state-aid, or county highway.
76.23    (b) A person may operate a class 1 all-terrain vehicle in the ditch or the outside
76.24bank or slope of a trunk, county state-aid, or county highway unless prohibited under
76.25paragraph (d) or (f).
76.26    (c) A person may operate a class 2 all-terrain vehicle:
76.27    (1) within the public road right-of-way of a county state-aid or county highway on
76.28the extreme right-hand side of the road and left turns may be made from any part of
76.29the road if it is safe to do so under the prevailing conditions, unless prohibited under
76.30paragraph (d) or (f).;
76.31    (2) on the bank, slope, or ditch of a public road right-of-way of a trunk highway,
76.32but only to access businesses or make trail connections, and left turns may be made from
76.33any part of the road if it is safe to do so under the prevailing conditions, unless prohibited
76.34under paragraph (d) or (f); and
77.1    (3) A person may operate a class 2 all-terrain vehicle on the bank or ditch of a
77.2public road right-of-way:
77.3    (i) on a designated class 2 all-terrain vehicle trail.; or
77.4    (ii) to access businesses or make trail connections when operation within the public
77.5road right-of-way is unsafe.
77.6    (d) A road authority as defined under section 160.02, subdivision 25, may after a
77.7public hearing restrict the use of all-terrain vehicles in the public road right-of-way under
77.8its jurisdiction.
77.9    (e) The restrictions in paragraphs (a), (d), (h), (i), and (j) do not apply to the
77.10operation of an all-terrain vehicle on the shoulder, inside bank or slope, ditch, or outside
77.11bank or slope of a trunk, interstate, county state-aid, or county highway:
77.12(1) that is part of a funded grant-in-aid trail; or
77.13(2) when the all-terrain vehicle is owned by or operated under contract with a publicly
77.14or privately owned utility or pipeline company and used for work on utilities or pipelines.
77.15    (f) The commissioner may limit the use of a right-of-way for a period of time if the
77.16commissioner determines that use of the right-of-way causes:
77.17    (1) degradation of vegetation on adjacent public property;
77.18    (2) siltation of waters of the state;
77.19    (3) impairment or enhancement to the act of taking game; or
77.20    (4) a threat to safety of the right-of-way users or to individuals on adjacent public
77.21property.
77.22    The commissioner must notify the road authority as soon as it is known that a closure
77.23will be ordered. The notice must state the reasons and duration of the closure.
77.24    (g) A person may operate an all-terrain vehicle registered for private use and used
77.25for agricultural purposes on a public road right-of-way of a trunk, county state-aid, or
77.26county highway in this state if the all-terrain vehicle is operated on the extreme right-hand
77.27side of the road, and left turns may be made from any part of the road if it is safe to do so
77.28under the prevailing conditions.
77.29    (h) A person shall not operate an all-terrain vehicle within the public road
77.30right-of-way of a trunk, county state-aid, or county highway from April 1 to August 1 in
77.31the agricultural zone unless the vehicle is being used exclusively as transportation to and
77.32from work on agricultural lands. This paragraph does not apply to an agent or employee
77.33of a road authority, as defined in section 160.02, subdivision 25, or the Department of
77.34Natural Resources when performing or exercising official duties or powers.
77.35    (i) A person shall not operate an all-terrain vehicle within the public road right-of-way
77.36of a trunk, county state-aid, or county highway between the hours of one-half hour after
78.1sunset to one-half hour before sunrise, except on the right-hand side of the right-of-way
78.2and in the same direction as the highway traffic on the nearest lane of the adjacent roadway.
78.3    (j) A person shall not operate an all-terrain vehicle at any time within the
78.4right-of-way of an interstate highway or freeway within this state.

78.5    Sec. 7. [84.973] POLLINATOR HABITAT PROGRAM.
78.6(a) The commissioner shall develop best management practices and habitat
78.7restoration guidelines for pollinator habitat enhancement. Best management practices
78.8and guidelines developed under this section must be used for all projects on state lands
78.9and must be a condition of any contract for habitat enhancement or restoration of lands
78.10under the commissioner's control.
78.11(b) Prairie restorations must include an appropriate diversity of native species
78.12selected to provide habitat for pollinators throughout the growing season.

78.13    Sec. 8. Minnesota Statutes 2012, section 84D.108, subdivision 2, is amended to read:
78.14    Subd. 2. Permit requirements. (a) Service providers must complete invasive
78.15species training provided by the commissioner and pass an examination to qualify for a
78.16permit. Service provider permits are valid for three calendar years.
78.17(b) A $50 application and testing fee is required for service provider permit
78.18applications.
78.19(c) Persons working for a permittee must satisfactorily complete aquatic invasive
78.20species-related training provided by the commissioner, except as provided under
78.21paragraph (d).
78.22(d) A person working for and supervised by a permittee is not required to complete
78.23the training under paragraph (c) if the water-related equipment or other water-related
78.24structures remain on the riparian property owned or controlled by the permittee and are
78.25only removed from and placed into the same water of the state.

78.26    Sec. 9. Minnesota Statutes 2012, section 85.015, subdivision 13, is amended to read:
78.27    Subd. 13. Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton,
78.28Koochiching, and Itasca Counties. (a)(1) The Taconite Trail shall originate at Ely in St.
78.29Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to
78.30McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in
78.31Itasca County and there terminate;
78.32(2) The C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County
78.33and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand
79.1Marais in Cook County, thence northeasterly to the international boundary in the vicinity
79.2of the north shore of Lake Superior, and there terminate;
79.3(3) The Grand Marais to International Falls Trail shall originate in Grand Marais
79.4in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area,
79.5to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to
79.6Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St.
79.7Louis County to International Falls in Koochiching County, and there terminate;
79.8(4) The Matthew Lourey Trail shall originate in Duluth in St. Louis County and
79.9extend southerly to St. Croix Chengwatana State Forest in Pine County.
79.10(b) The trails shall be developed primarily for riding and hiking.
79.11(c) In addition to the authority granted in subdivision 1, lands and interests in lands
79.12for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring
79.13any land or interest in land by eminent domain the commissioner of administration shall
79.14obtain the approval of the governor. The governor shall consult with the Legislative
79.15Advisory Commission before granting approval. Recommendations of the Legislative
79.16Advisory Commission shall be advisory only. Failure or refusal of the commission to
79.17make a recommendation shall be deemed a negative recommendation.

79.18    Sec. 10. Minnesota Statutes 2012, section 85.052, subdivision 6, is amended to read:
79.19    Subd. 6. State park reservation system. (a) The commissioner may, by written
79.20order, develop reasonable reservation policies for campsites and other lodging. These
79.21policies are exempt from rulemaking provisions under chapter 14 and section 14.386
79.22does not apply.
79.23(b) The revenue collected from the state park reservation fee established under
79.24subdivision 5, including interest earned, shall be deposited in the state park account in the
79.25natural resources fund and is annually appropriated to the commissioner for the cost of
79.26the state park reservation system.
79.27EFFECTIVE DATE.This section is effective retroactively from March 1, 2012.

79.28    Sec. 11. Minnesota Statutes 2012, section 85.054, is amended by adding a subdivision
79.29to read:
79.30    Subd. 18. La Salle Lake State Recreation Area. A state park permit is not
79.31required and a fee may not be charged for motor vehicle entry, use, or parking in La
79.32Salle Lake State Recreation Area unless the occupants of the vehicle enter, use, or park
79.33in a developed overnight or day-use area.

80.1    Sec. 12. Minnesota Statutes 2012, section 85.055, subdivision 1, is amended to read:
80.2    Subdivision 1. Fees. The fee for state park permits for:
80.3(1) an annual use of state parks is $25;
80.4(2) a second or subsequent vehicle state park permit is $18;
80.5(3) a state park permit valid for one day is $5;
80.6(4) a daily vehicle state park permit for groups is $3;
80.7(5) an annual permit for motorcycles is $20;
80.8(6) an employee's state park permit is without charge; and
80.9(7) a state park permit for disabled persons under section 85.053, subdivision 7,
80.10clauses (1) and (2) to (3), is $12.
80.11The fees specified in this subdivision include any sales tax required by state law.

80.12    Sec. 13. Minnesota Statutes 2012, section 85.055, subdivision 2, is amended to read:
80.13    Subd. 2. Fee deposit and appropriation. The fees collected under this section shall
80.14be deposited in the natural resources fund and credited to the state parks account. Money
80.15in the account, except for the electronic licensing system commission established by the
80.16commissioner under section 84.027, subdivision 15, and the state park reservation system
80.17fee established by the commissioner under section 85.052, subdivisions 5 and 6, is available
80.18for appropriation to the commissioner to operate and maintain the state park system.

80.19    Sec. 14. Minnesota Statutes 2012, section 85.42, is amended to read:
80.2085.42 USER FEE; VALIDITY.
80.21(a) The fee for an annual cross-country ski pass is $19 for an individual age 16 and
80.22over. The fee for a three-year pass is $54 for an individual age 16 and over. This fee
80.23shall be collected at the time the pass is purchased. Three-year passes are valid for three
80.24years beginning the previous July 1. Annual passes are valid for one year beginning
80.25the previous July 1.
80.26(b) The cost for a daily cross-country skier pass is $5 for an individual age 16 and
80.27over. This fee shall be collected at the time the pass is purchased. The daily pass is valid
80.28only for the date designated on the pass form.
80.29(c) A pass must be signed by the skier across the front of the pass to be valid and
80.30becomes nontransferable on signing.
80.31(d) The commissioner and agents shall issue a duplicate pass to a person whose pass
80.32is lost or destroyed, using the process established under section 97A.405, subdivision 3,
80.33and rules adopted thereunder. The fee for a duplicate cross-country ski pass is $2.

81.1    Sec. 15. Minnesota Statutes 2012, section 89.0385, is amended to read:
81.289.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST
81.3CERTIFICATION.
81.4(a) After each fiscal year, The commissioner shall certify the total costs incurred for
81.5forest management, forest improvement, and road improvement on state-managed lands
81.6during that year. The commissioner shall distribute forest management receipts credited to
81.7various accounts according to this section.
81.8(b) The amount of the certified costs incurred for forest management activities on
81.9state lands shall be transferred from the account where receipts are deposited to the forest
81.10management investment account in the natural resources fund, except for those costs
81.11certified under section 16A.125. Transfers may occur quarterly, based on quarterly cost and
81.12revenue reports, throughout the fiscal year, with final certification and reconciliation after
81.13each fiscal year. Transfers in a fiscal year cannot exceed receipts credited to the account.

81.14    Sec. 16. Minnesota Statutes 2012, section 89.17, is amended to read:
81.1589.17 LEASES AND PERMITS.
81.16(a) Notwithstanding the permit procedures of chapter 90, the commissioner shall
81.17have power to grant and execute, in the name of the state, leases and permits for the use of
81.18any forest lands under the authority of the commissioner for any purpose which in the
81.19commissioner's opinion is not inconsistent with the maintenance and management of the
81.20forest lands, on forestry principles for timber production. Every such lease or permit shall
81.21be revocable at the discretion of the commissioner at any time subject to such conditions
81.22as may be agreed on in the lease. The approval of the commissioner of administration
81.23shall not be required upon any such lease or permit. No such lease or permit for a period
81.24exceeding 21 years shall be granted except with the approval of the Executive Council.
81.25(b) Public access to the leased land for outdoor recreation shall be the same as
81.26access would be under state management.
81.27(c) The commissioner shall, by written order, establish the schedule of application
81.28fees for all leases issued under this section. Notwithstanding section 16A.1285, subdivision
81.292, the application fees shall be set at a rate that neither significantly overrecovers nor
81.30underrecovers costs, including overhead costs, involved in providing the services at the
81.31time of issuing the leases. The commissioner shall update the schedule of application fees
81.32every five years. The schedule of application fees and any adjustment to the schedule are
81.33not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.
82.1(d) Money received under paragraph (c) must be deposited in the land management
82.2account in the natural resources fund and is appropriated to the commissioner to cover the
82.3reasonable costs incurred for issuing leases.
82.4(e) Notwithstanding section 16A.125, subdivision 5, after deducting the reasonable
82.5costs incurred for preparing and issuing the lease application fee paid according to
82.6paragraph (c), all remaining proceeds from the leasing of school trust land and university
82.7land for roads on forest lands must be deposited into the respective permanent fund for
82.8the lands.

82.9    Sec. 17. Minnesota Statutes 2012, section 90.01, subdivision 4, is amended to read:
82.10    Subd. 4. Scaler. "Scaler" means a qualified bonded person designated by the
82.11commissioner to measure timber and cut forest products.

82.12    Sec. 18. Minnesota Statutes 2012, section 90.01, subdivision 5, is amended to read:
82.13    Subd. 5. State appraiser. "State appraiser" means an employee of the department
82.14designated by the commissioner to appraise state lands, which includes, but is not limited
82.15to, timber and other forest resource products, for volume, quality, and value.

82.16    Sec. 19. Minnesota Statutes 2012, section 90.01, subdivision 6, is amended to read:
82.17    Subd. 6. Timber. "Timber" means trees, shrubs, or woody plants, that will produce
82.18forest products of value whether standing or down, and including but not limited to logs,
82.19sawlogs, posts, poles, bolts, pulpwood, cordwood, fuelwood, woody biomass, lumber,
82.20 and woody decorative material.

82.21    Sec. 20. Minnesota Statutes 2012, section 90.01, subdivision 8, is amended to read:
82.22    Subd. 8. Permit holder. "Permit holder" means the person holding who is the
82.23signatory of a permit to cut timber on state lands.

82.24    Sec. 21. Minnesota Statutes 2012, section 90.01, subdivision 11, is amended to read:
82.25    Subd. 11. Effective permit. "Effective permit" means a permit for which the
82.26commissioner has on file full or partial surety security as required by section 90.161, or
82.27 90.162, 90.163, or 90.173 or, in the case of permits issued according to section 90.191 or
82.2890.195 , the commissioner has received a down payment equal to the full appraised value.

82.29    Sec. 22. Minnesota Statutes 2012, section 90.031, subdivision 4, is amended to read:
83.1    Subd. 4. Timber rules. The Executive Council may formulate and establish, from
83.2time to time, rules it deems advisable for the transaction of timber business of the state,
83.3including approval of the sale of timber on any tract in a lot exceeding 6,000 12,000 cords
83.4in volume when the sale is in the best interests of the state, and may abrogate, modify,
83.5or suspend rules at its pleasure.

83.6    Sec. 23. Minnesota Statutes 2012, section 90.041, subdivision 2, is amended to read:
83.7    Subd. 2. Trespass on state lands. The commissioner may compromise and settle,
83.8with the approval of notification to the attorney general, upon terms the commissioner
83.9deems just, any claim of the state for casual and involuntary trespass upon state lands or
83.10timber; provided that no claim shall be settled for less than the full value of all timber
83.11or other materials taken in casual trespass or the full amount of all actual damage or
83.12loss suffered by the state as a result. Upon request, the commissioner shall advise the
83.13Executive Council of any information acquired by the commissioner concerning any
83.14trespass on state lands, giving all details and names of witnesses and all compromises and
83.15settlements made under this subdivision.

83.16    Sec. 24. Minnesota Statutes 2012, section 90.041, subdivision 5, is amended to read:
83.17    Subd. 5. Forest improvement contracts. The commissioner may contract as part
83.18of the timber sale with the purchaser of state timber at either informal or auction sale
83.19for the following forest improvement work to be done on the land included within the
83.20sale area:. Forest improvement work may include activities relating to preparation of
83.21the site for seeding or planting of seedlings or trees, seeding or planting of seedlings or
83.22trees, and other activities relating related to forest regeneration or deemed necessary by
83.23the commissioner to accomplish forest management objectives, including those related
83.24to water quality protection, trail development, and wildlife habitat enhancement. A
83.25contract issued under this subdivision is not subject to the competitive bidding provisions
83.26of chapter 16C and is exempt from the contract approval provisions of section 16C.05,
83.27subdivision 2
. The bid value received in the sale of the timber and the contract bid
83.28cost of the improvement work may be combined and the total value may be considered
83.29by the commissioner in awarding forest improvement contracts under this section.
83.30The commissioner may refuse to accept any and all bids received and cancel a forest
83.31improvement contract sale for good and sufficient reasons.

83.32    Sec. 25. Minnesota Statutes 2012, section 90.041, subdivision 6, is amended to read:
84.1    Subd. 6. Sale of damaged timber. The commissioner may sell at public auction
84.2timber that has been damaged by fire, windstorm, flood, insect, disease, or other natural
84.3cause on notice that the commissioner considers reasonable when there is a high risk that
84.4the salvage value of the timber would be lost.

84.5    Sec. 26. Minnesota Statutes 2012, section 90.041, subdivision 9, is amended to read:
84.6    Subd. 9. Reoffering unsold timber. To maintain and enhance forest ecosystems on
84.7state forest lands, The commissioner may reoffer timber tracts remaining unsold under the
84.8provisions of section 90.101 below appraised value at public auction with the required
84.930-day notice under section 90.101, subdivision 2.

84.10    Sec. 27. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
84.11to read:
84.12    Subd. 10. Fees. (a) The commissioner may establish a fee schedule that covers the
84.13commissioner's cost of issuing, administering, and processing various permits, permit
84.14modifications, transfers, assignments, amendments, and other transactions necessary to the
84.15administration of activities under this chapter.
84.16(b) A fee established under this subdivision is not subject to the rulemaking
84.17provisions of chapter 14 and section 14.386 does not apply. The commissioner may
84.18establish fees under this subdivision notwithstanding section 16A.1283.

84.19    Sec. 28. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
84.20to read:
84.21    Subd. 11. Debarment. The commissioner may debar a permit holder if the holder
84.22is convicted in Minnesota at the gross misdemeanor or felony level of criminal willful
84.23trespass, theft, fraud, or antitrust violation involving state, federal, county, or privately
84.24owned timber in Minnesota or convicted in any other state involving similar offenses and
84.25penalties for timber owned in that state. The commissioner shall cancel and repossess the
84.26permit directly involved in the prosecution of the crime. The commissioner shall cancel
84.27and repossess all other state timber permits held by the permit holder after taking from
84.28all security deposits money to which the state is entitled. The commissioner shall return
84.29the remainder of the security deposits, if any, to the permit holder. The debarred permit
84.30holder is prohibited from bidding, possessing, or being employed on any state timber
84.31permit during the period of debarment. The period of debarment is not less than one year
84.32or greater than three years. The duration of the debarment is based on the severity of the
85.1violation, past history of compliance with timber permits, and the amount of loss incurred
85.2by the state arising from violations of timber permits.

85.3    Sec. 29. Minnesota Statutes 2012, section 90.045, is amended to read:
85.490.045 APPRAISAL STANDARDS.
85.5By July 1, 1983, the commissioner shall establish specific timber appraisal standards
85.6according to which all timber appraisals will be conducted under this chapter. The
85.7standards shall include a specification of the maximum allowable appraisal sampling error,
85.8and including the procedures for tree defect allowance, tract area estimation, product
85.9volume estimation, and product value determination. The timber appraisal standards shall
85.10be included in each edition of the timber sales manual published by the commissioner. In
85.11addition to the duties pursuant to section 90.061, every state appraiser shall work within
85.12the guidelines of the timber appraisal standards. The standards shall not be subject to
85.13the rulemaking provisions of chapter 14.

85.14    Sec. 30. Minnesota Statutes 2012, section 90.061, subdivision 8, is amended to read:
85.15    Subd. 8. Appraiser authority; form of documents. State appraisers are
85.16empowered, with the consent of the commissioner, to perform any scaling, and generally
85.17to supervise the cutting and removal of timber and forest products on or from state lands
85.18so far as may be reasonably necessary to insure compliance with the terms of the permits
85.19or other contracts governing the same and protect the state from loss.
85.20The form of appraisal reports, records, and notes to be kept by state appraisers
85.21shall be as the commissioner prescribes.

85.22    Sec. 31. Minnesota Statutes 2012, section 90.101, subdivision 1, is amended to read:
85.23    Subdivision 1. Sale requirements. The commissioner may sell the timber on any
85.24tract of state land and may determine the number of sections or fractional sections of land
85.25to be included in the permit area covered by any one permit issued to the purchaser of
85.26timber on state lands, or in any one contract or other instrument relating thereto. No
85.27timber shall be sold, except (1) to the highest responsible bidder at public auction, or
85.28(2) if unsold at public auction, the commissioner may offer the timber for private sale
85.29for a period of no more than six months one year after the public auction to any person
85.30 responsible bidder who pays the appraised value for the timber. The minimum price shall
85.31be the appraised value as fixed by the report of the state appraiser. Sales may include tracts
85.32in more than one contiguous county or forestry administrative area and shall be held either
85.33in the county or forestry administrative area in which the tract is located or in an adjacent
86.1county or forestry administrative area that is nearest the tract offered for sale or that is
86.2most accessible to potential bidders. In adjoining counties or forestry administrative areas,
86.3sales may not be held less than two hours apart.

86.4    Sec. 32. Minnesota Statutes 2012, section 90.121, is amended to read:
86.590.121 INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000
86.6CORDS.
86.7(a) The commissioner may sell the timber on any tract of state land in lots not
86.8exceeding 3,000 cords in volume, in the same manner as timber sold at public auction under
86.9section 90.101, and related laws, subject to the following special exceptions and limitations:
86.10(1) the commissioner shall offer all tracts authorized for sale by this section
86.11separately from the sale of tracts of state timber made pursuant to section 90.101;
86.12(2) no bidder may be awarded more than 25 percent of the total tracts offered at the
86.13first round of bidding unless fewer than four tracts are offered, in which case not more than
86.14one tract shall be awarded to one bidder. Any tract not sold at public auction may be offered
86.15for private sale as authorized by section 90.101, subdivision 1, 30 days after the auction to
86.16persons responsible bidders eligible under this section at the appraised value; and
86.17(3) no sale may be made to a person responsible bidder having more than 30
86.18employees. For the purposes of this clause, "employee" means an individual working in
86.19the timber or wood products industry for salary or wages on a full-time or part-time basis.
86.20(b) The auction sale procedure set forth in this section constitutes an additional
86.21alternative timber sale procedure available to the commissioner and is not intended to
86.22replace other authority possessed by the commissioner to sell timber in lots of 3,000
86.23cords or less.
86.24(c) Another bidder or the commissioner may request that the number of employees a
86.25bidder has pursuant to paragraph (a), clause (3), be confirmed by signed affidavit if there is
86.26evidence that the bidder may be ineligible due to exceeding the employee threshold. The
86.27commissioner shall request information from the commissioners of labor and industry and
86.28employment and economic development including the premiums paid by the bidder in
86.29question for workers' compensation insurance coverage for all employees of the bidder.
86.30The commissioner shall review the information submitted by the commissioners of labor
86.31and industry and employment and economic development and make a determination based
86.32on that information as to whether the bidder is eligible. A bidder is considered eligible and
86.33may participate in intermediate auctions until determined ineligible under this paragraph.

87.1    Sec. 33. Minnesota Statutes 2012, section 90.145, is amended to read:
87.290.145 PURCHASER QUALIFICATIONS AND, REGISTRATION, AND
87.3REQUIREMENTS.
87.4    Subdivision 1. Purchaser qualifications requirements. (a) In addition to any other
87.5requirements imposed by this chapter, the purchaser of a state timber permit issued under
87.6section 90.151 must meet the requirements in paragraphs (b) to (d) (e).
87.7(b) The purchaser and or the purchaser's agents, employees, subcontractors, and
87.8assigns conducting logging operations on the timber permit must comply with general
87.9industry safety standards for logging adopted by the commissioner of labor and industry
87.10under chapter 182. The commissioner of natural resources shall may require a purchaser
87.11to provide proof of compliance with the general industry safety standards.
87.12(c) The purchaser and or the purchaser's agents, subcontractors, and assigns
87.13conducting logging operations on the timber permit must comply with the mandatory
87.14insurance requirements of chapter 176. The commissioner shall may require a purchaser
87.15to provide a copy of the proof of insurance required by section 176.130 before the start of
87.16harvesting operations on any permit.
87.17(d) Before the start of harvesting operations on any permit, the purchaser must certify
87.18that a foreperson or other designated employee who has a current certificate of completion,
87.19 which includes instruction in site-level forest management guidelines or best management
87.20practices, from the Minnesota Logger Education Program (MLEP), the Wisconsin Forest
87.21Industry Safety and Training Alliance (FISTA), or any similar continuous education
87.22program acceptable to the commissioner, is supervising active logging operations.
87.23(e) The purchaser and the purchaser's agents, employees, subcontractors, and assigns
87.24who will be involved with logging or scaling state timber must be in compliance with
87.25this chapter.
87.26    Subd. 2. Purchaser preregistration registration. To facilitate the sale of permits
87.27issued under section 90.151, the commissioner may establish a purchaser preregistration
87.28 registration system to verify the qualifications of a person as a responsible bidder to
87.29purchase a timber permit. Any system implemented by the commissioner shall be limited
87.30in scope to only that information that is required for the efficient administration of the
87.31purchaser qualification provisions requirements of this chapter and shall conform with the
87.32requirements of chapter 13. The registration system established under this subdivision is
87.33not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.

87.34    Sec. 34. Minnesota Statutes 2012, section 90.151, subdivision 1, is amended to read:
88.1    Subdivision 1. Issuance; expiration. (a) Following receipt of the down payment
88.2for state timber required under section 90.14 or 90.191, the commissioner shall issue a
88.3numbered permit to the purchaser, in a form approved by the attorney general, by the
88.4terms of which the purchaser shall be authorized to enter upon the land, and to cut and
88.5remove the timber therein described as designated for cutting in the report of the state
88.6appraiser, according to the provisions of this chapter. The permit shall be correctly
88.7dated and executed by the commissioner and signed by the purchaser. If a permit is not
88.8signed by the purchaser within 60 45 days from the date of purchase, the permit cancels
88.9and the down payment for timber required under section 90.14 forfeits to the state. The
88.10commissioner may grant an additional period for the purchaser to sign the permit, not to
88.11exceed five ten business days, provided the purchaser pays a $125 $200 penalty fee.
88.12    (b) The permit shall expire no later than five years after the date of sale as the
88.13commissioner shall specify or as specified under section 90.191, and the timber shall
88.14be cut and removed within the time specified therein. All cut timber, equipment, and
88.15buildings not removed from the land within 90 days after expiration of the permit shall
88.16become the property of the state. If additional time is needed, the permit holder must
88.17request, prior to the expiration date, and may be granted, for good and sufficient reasons,
88.18up to 90 additional days for the completion of skidding, hauling, and removing all
88.19equipment and buildings. All cut timber, equipment, and buildings not removed from the
88.20land after expiration of the permit becomes the property of the state.
88.21    (c) The commissioner may grant an additional period of time not to exceed 120 240
88.22 days for the removal of cut timber, equipment, and buildings upon receipt of such a written
88.23 request by the permit holder for good and sufficient reasons. The commissioner may grant
88.24a second period of time not to exceed 120 days for the removal of cut timber, equipment,
88.25and buildings upon receipt of a request by the permit holder for hardship reasons only.
88.26 The permit holder may combine in the written request under this paragraph the request
88.27for additional time under paragraph (b).

88.28    Sec. 35. Minnesota Statutes 2012, section 90.151, subdivision 2, is amended to read:
88.29    Subd. 2. Permit requirements. The permit shall state the amount of timber
88.30estimated for cutting on the land, the estimated value thereof, and the price at which it is
88.31sold in units of per thousand feet, per cord, per piece, per ton, or by whatever description
88.32sold, and shall specify that all landings of cut products shall be legibly marked with the
88.33assigned permit number. The permit shall provide for the continuous identification
88.34and control of the cut timber from the time of cutting until delivery to the consumer.
89.1The permit shall provide that failure to continuously identify the timber as specified in
89.2the permit constitutes trespass.

89.3    Sec. 36. Minnesota Statutes 2012, section 90.151, subdivision 3, is amended to read:
89.4    Subd. 3. Security provisions. The permit shall contain such provisions as may be
89.5necessary to secure to the state the title of all timber cut thereunder wherever found until
89.6full payment therefor and until all provisions of the permit have been fully complied
89.7with. The permit shall provide that from the date the same becomes effective cutting
89.8commences until the expiration thereof of the permit, including all extensions, the
89.9purchaser and successors in interest shall be liable to the state for the full permit price of
89.10all timber covered thereby, notwithstanding any subsequent damage or injury thereto or
89.11trespass thereon or theft thereof, and without prejudice to the right of the state to pursue
89.12such timber and recover the value thereof anywhere prior to the payment therefor in full to
89.13the state. If an effective permit is forfeited prior to any cutting activity, the purchaser is
89.14liable to the state for a sum equal to the down payment and bid guarantee. Upon recovery
89.15from any person other than the permit holder, the permit holder shall be deemed released
89.16to the extent of the net amount, after deducting all expenses of collecting same, recovered
89.17by the state from such other person.

89.18    Sec. 37. Minnesota Statutes 2012, section 90.151, subdivision 4, is amended to read:
89.19    Subd. 4. Permit terms. Once a permit becomes effective and cutting commences,
89.20the permit holder is liable to the state for the permit price for all timber required to be cut,
89.21including timber not cut. The permit shall provide that all timber sold or designated for
89.22cutting shall be cut without in such a manner so as not to cause damage to other timber;
89.23that the permit holder shall remove all timber authorized and designated to be cut under
89.24the permit; that timber sold by board measure identified in the permit, but later determined
89.25by the commissioner not to be convertible into board the permit's measure, shall be paid
89.26for by the piece or cord or other unit of measure according to the size, species, or value, as
89.27may be determined by the commissioner; and that all timber products, except as specified
89.28by the commissioner, shall be scaled and the final settlement for the timber cut shall be
89.29made on this scale; and that the permit holder shall pay to the state the permit price for
89.30all timber authorized to be cut, including timber not cut.

89.31    Sec. 38. Minnesota Statutes 2012, section 90.151, subdivision 6, is amended to read:
89.32    Subd. 6. Notice and approval required. The permit shall provide that the permit
89.33holder shall not start cutting any state timber nor clear building sites landings nor logging
90.1roads until the commissioner has been notified and has given prior approval to such
90.2cutting operations. Approval shall not be granted until the permit holder has completed
90.3a presale conference with the state appraiser designated to supervise the cutting. The
90.4permit holder shall also give prior notice whenever permit operations are to be temporarily
90.5halted, whenever permit operations are to be resumed, and when permit operations are to
90.6be completed.

90.7    Sec. 39. Minnesota Statutes 2012, section 90.151, subdivision 7, is amended to read:
90.8    Subd. 7. Liability for timber cut in trespass. The permit shall provide that the
90.9permit holder shall pay the permit price value for any timber sold which is negligently
90.10destroyed or damaged by the permit holder in cutting or removing other timber sold. If the
90.11permit holder shall cut or remove or negligently destroy or damage any timber upon the
90.12land described, not sold under the permit, except such timber as it may be necessary to cut
90.13and remove in the construction of necessary logging roads and landings approved as to
90.14location and route by the commissioner, such timber shall be deemed to have been cut in
90.15trespass. The permit holder shall be liable for any such timber and recourse may be had
90.16upon the bond security deposit.

90.17    Sec. 40. Minnesota Statutes 2012, section 90.151, subdivision 8, is amended to read:
90.18    Subd. 8. Suspension; cancellation. The permit shall provide that the commissioner
90.19shall have the power to order suspension of all operations under the permit when in the
90.20commissioner's judgment the conditions thereof have not been complied with and any
90.21timber cut or removed during such suspension shall be deemed to have been cut in trespass;
90.22that the commissioner may cancel the permit at any time when in the commissioner's
90.23judgment the conditions thereof have not been complied with due to a breach of the permit
90.24conditions and such cancellation shall constitute repossession of the timber by the state;
90.25that the permit holder shall remove equipment and buildings from such land within 90 days
90.26after such cancellation; that, if the purchaser at any time fails to pay any obligations to the
90.27state under any other permits, any or all permits may be canceled; and that any timber cut
90.28or removed in violation of the terms of the permit or of any law shall constitute trespass.

90.29    Sec. 41. Minnesota Statutes 2012, section 90.151, subdivision 9, is amended to read:
90.30    Subd. 9. Slashings disposal. The permit shall provide that the permit holder shall
90.31burn or otherwise dispose of or treat all slashings or other refuse resulting from cutting
90.32operations, as specified in the permit, in the manner now or hereafter provided by law.

91.1    Sec. 42. Minnesota Statutes 2012, section 90.161, is amended to read:
91.290.161 SURETY BONDS FOR AUCTION SECURITY DEPOSITS
91.3REQUIRED FOR EFFECTIVE TIMBER PERMITS.
91.4    Subdivision 1. Bond Security deposit required. (a) Except as otherwise provided
91.5by law, the purchaser of any state timber, before any timber permit becomes effective for
91.6any purpose, shall give a good and valid bond security in the form of cash; a certified
91.7check; a cashier's check; a postal, bank, or express money order; a corporate surety bond;
91.8or an irrevocable bank letter of credit to the state of Minnesota equal to the value of all
91.9timber covered or to be covered by the permit, as shown by the sale price bid and the
91.10appraisal report as to quantity, less the amount of any payments pursuant to sections
91.11 section 90.14 and 90.163.
91.12(b) The bond security deposit shall be conditioned upon the faithful performance
91.13by the purchaser and successors in interest of all terms and conditions of the permit and
91.14all requirements of law in respect to timber sales. The bond security deposit shall be
91.15approved in writing by the commissioner and filed for record in the commissioner's office.
91.16(c) In the alternative to cash and bond requirements, but upon the same conditions,
91.17 A purchaser may post bond for 100 percent of the purchase price and request refund of the
91.18amount of any payments pursuant to sections section 90.14 and 90.163. The commissioner
91.19may credit the refund to any other permit held by the same permit holder if the permit is
91.20delinquent as provided in section 90.181, subdivision 2, or may credit the refund to any
91.21other permit to which the permit holder requests that it be credited.
91.22(d) In the event of a default, the commissioner may take from the deposit the sum of
91.23money to which the state is entitled. The commissioner shall return the remainder of the
91.24deposit, if any, to the person making the deposit. When cash is deposited as security, it
91.25shall be applied to the amount due when a statement is prepared and transmitted to the
91.26permit holder according to section 90.181. Any balance due to the state shall be shown on
91.27the statement and shall be paid as provided in section 90.181. Any amount of the deposit
91.28in excess of the amount determined to be due according to section 90.181 shall be returned
91.29to the permit holder when a final statement is transmitted under section 90.181. All or
91.30part of a cash deposit may be withheld from application to an amount due on a nonfinal
91.31statement if it appears that the total amount due on the permit will exceed the bid price.
91.32(e) If an irrevocable bank letter of credit is provided as security under paragraph
91.33(a), at the written request of the permittee, the commissioner shall annually allow the
91.34amount of the bank letter of credit to be reduced by an amount proportionate to the value
91.35of timber that has been harvested and for which the state has received payment under the
91.36timber permit. The remaining amount of the bank letter of credit after a reduction under
92.1this paragraph must not be less than the value of the timber remaining to be harvested
92.2under the timber permit.
92.3(f) If cash; a certified check; a cashier's check; a personal check; or a postal, bank, or
92.4express money order is provided as security under paragraph (a) and no cutting of state
92.5timber has taken place on the permit, the commissioner may credit the security provided,
92.6less any deposit required under section 90.14, to any other permit to which the permit
92.7holder requests in writing that it be credited.
92.8    Subd. 2. Failure to bond provide security deposit. If bond the security deposit is
92.9not furnished, no harvesting may occur and the down payment for timber 15 percent of the
92.10permit's purchase price shall forfeit to the state when the permit expires.
92.11    Subd. 3. Subrogation. In case of default When security is provided by surety
92.12bond and the permit holder defaults in payment by the permit holder, the surety upon the
92.13bond shall make payment in full to the state of all sums of money due under such permit;
92.14and thereupon such surety shall be deemed immediately subrogated to all the rights of
92.15the state in the timber so paid for; and such subrogated party may pursue the timber and
92.16recover therefor, or have any other appropriate relief in relation thereto which the state
92.17might or could have had if such surety had not made such payment. No assignment or
92.18other writing on the part of the state shall be necessary to make such subrogation effective,
92.19but the certificate signed by and bearing the official seal of the commissioner, showing the
92.20amount of such timber, the lands from which it was cut or upon which it stood, and the
92.21amount paid therefor, shall be prima facie evidence of such facts.
92.22    Subd. 4. Change of security. Prior to any harvest cutting activity, or activities
92.23incidental to the preparation for harvest, a purchaser having posted a bond security deposit
92.24 for 100 percent of the purchase price of a sale may request the release of the bond security
92.25 and the commissioner shall grant the release upon cash payment to the commissioner of
92.2615 percent of the appraised value of the sale, plus eight percent interest on the appraised
92.27value of the sale from the date of purchase to the date of release while retaining, or upon
92.28repayment of, the permit's down payment and bid guarantee deposit requirement.
92.29    Subd. 5. Return of security. Any security required under this section shall be
92.30returned to the purchaser within 60 days after the final scale.

92.31    Sec. 43. Minnesota Statutes 2012, section 90.162, is amended to read:
92.3290.162 ALTERNATIVE TO BOND OR DEPOSIT REQUIREMENTS
92.33 SECURING TIMBER PERMITS WITH CUTTING BLOCKS.
92.34In lieu of the bond or cash security deposit equal to the value of all timber covered
92.35by the permit required by section 90.161 or 90.173, a purchaser of state timber may elect
93.1in writing on a form prescribed by the attorney general to give good and valid surety to the
93.2state of Minnesota equal to the purchase price for any designated cutting block identified
93.3on the permit before the date the purchaser enters upon the land to begin harvesting the
93.4timber on the designated cutting block.

93.5    Sec. 44. [90.164] TIMBER PERMIT DEVELOPMENT OPTION.
93.6With the completion of the presale conference requirement under section 90.151,
93.7subdivision 6, a permit holder may access the permit area in advance of the permit being
93.8fully secured as required by section 90.161, for the express purpose of clearing approved
93.9landings and logging roads. No cutting of state timber except that incidental to the clearing
93.10of approved landings and logging roads is allowed under this section.

93.11    Sec. 45. Minnesota Statutes 2012, section 90.171, is amended to read:
93.1290.171 ASSIGNMENT OF AUCTION TIMBER PERMITS.
93.13Any permit sold at public auction may be assigned upon written approval of the
93.14commissioner. The assignment of any permit shall be signed and acknowledged by the
93.15permit holder. The commissioner shall not approve any assignment until the assignee has
93.16been determined to meet the qualifications of a responsible bidder and has given to the state
93.17a bond security deposit which shall be substantially in the form of, and shall be deemed
93.18of the same effect as, the bond security deposit required of the original purchaser. The
93.19commissioner may accept the an agreement of the assignee and any corporate surety upon
93.20such an original bond, substituting the assignee in the place of such the original purchaser
93.21and continuing such the original bond in full force and effect, as to the assignee. Thereupon
93.22but not otherwise the permit holder making the assignment shall be released from all
93.23liability arising or accruing from actions taken after the assignment became effective.

93.24    Sec. 46. Minnesota Statutes 2012, section 90.181, subdivision 2, is amended to read:
93.25    Subd. 2. Deferred payments. (a) If the amount of the statement is not paid within
93.2630 days of the date thereof, it shall bear interest at the rate determined pursuant to section
93.2716A.124 , except that the purchaser shall not be required to pay interest that totals $1 or
93.28less. If the amount is not paid within 60 days, the commissioner shall place the account in
93.29the hands of the commissioner of revenue according to chapter 16D, who shall proceed to
93.30collect the same. When deemed in the best interests of the state, the commissioner shall
93.31take possession of the timber for which an amount is due wherever it may be found and
93.32sell the same informally or at public auction after giving reasonable notice.
94.1(b) The proceeds of the sale shall be applied, first, to the payment of the expenses
94.2of seizure and sale; and, second, to the payment of the amount due for the timber, with
94.3interest; and the surplus, if any, shall belong to the state; and, in case a sufficient amount is
94.4not realized to pay these amounts in full, the balance shall be collected by the attorney
94.5general. Neither payment of the amount, nor the recovery of judgment therefor, nor
94.6satisfaction of the judgment, nor the seizure and sale of timber, shall release the sureties
94.7on any bond security deposit given pursuant to this chapter, or preclude the state from
94.8afterwards claiming that the timber was cut or removed contrary to law and recovering
94.9damages for the trespass thereby committed, or from prosecuting the offender criminally.

94.10    Sec. 47. Minnesota Statutes 2012, section 90.191, subdivision 1, is amended to read:
94.11    Subdivision 1. Sale requirements. The commissioner may sell the timber on any
94.12tract of state land in lots not exceeding 500 cords in volume, without formalities but for
94.13not less than the full appraised value thereof, to any person. No sale shall be made under
94.14this section to any person holding two more than four permits issued hereunder which are
94.15still in effect;. except that (1) a partnership as defined in chapter 323, which may include
94.16spouses but which shall provide evidence that a partnership exists, may be holding two
94.17permits for each of not more than three partners who are actively engaged in the business
94.18of logging or who are the spouses of persons who are actively engaged in the business of
94.19logging with that partnership; and (2) a corporation, a majority of whose shares and voting
94.20power are owned by natural persons related to each other within the fourth degree of
94.21kindred according to the rules of the civil law or their spouses or estates, may be holding
94.22two permits for each of not more than three shareholders who are actively engaged in the
94.23business of logging or who are the spouses of persons who are actively engaged in the
94.24business of logging with that corporation.

94.25    Sec. 48. Minnesota Statutes 2012, section 90.193, is amended to read:
94.2690.193 EXTENSION OF TIMBER PERMITS.
94.27The commissioner may, in the case of an exceptional circumstance beyond the
94.28control of the timber permit holder which makes it unreasonable, impractical, and not
94.29feasible to complete cutting and removal under the permit within the time allowed, grant
94.30an one regular extension of for one year. A written request for the regular extension must
94.31be received by the commissioner before the permit expires. The request must state the
94.32reason the extension is necessary and be signed by the permit holder. An interest rate of
94.33eight percent may be charged for the period of extension.

95.1    Sec. 49. Minnesota Statutes 2012, section 90.195, is amended to read:
95.290.195 SPECIAL USE AND PRODUCT PERMIT.
95.3(a) The commissioner may issue a permit to salvage or cut not to exceed 12 cords of
95.4fuelwood per year for personal use from either or both of the following sources: (1) dead,
95.5down, and diseased damaged trees; (2) other trees that are of negative value under good
95.6forest management practices. The permits may be issued for a period not to exceed one
95.7year. The commissioner shall charge a fee for the permit that shall cover the commissioner's
95.8cost of issuing the permit and as provided under section 90.041, subdivision 10. The fee
95.9 shall not exceed the current market value of fuelwood of similar species, grade, and volume
95.10that is being sold in the area where the salvage or cutting is authorized under the permit.
95.11(b) The commissioner may issue a special product permit under section 89.42 for
95.12commercial use, which may include incidental volumes of boughs, gravel, hay, biomass,
95.13and other products derived from forest management activities. The value of the products
95.14is the current market value of the products that are being sold in the area. The permit may
95.15be issued for a period not to exceed one year and the commissioner shall charge a fee for
95.16the permit as provided under section 90.041, subdivision 10.
95.17(c) The commissioner may issue a special use permit for incidental volumes of
95.18timber from approved right-of-way road clearing across state land for the purpose of
95.19accessing a state timber permit. The permit shall include the volume and value of timber
95.20to be cleared and may be issued for a period not to exceed one year. A presale conference
95.21as required under section 90.151, subdivision 6, must be completed before the start of
95.22any activities under the permit.

95.23    Sec. 50. Minnesota Statutes 2012, section 90.201, subdivision 2a, is amended to read:
95.24    Subd. 2a. Prompt payment of refunds. Any refund of cash that is due to a permit
95.25holder as determined on a final statement transmitted pursuant to section 90.181 or a
95.26refund of cash made pursuant to section 90.161, subdivision 1, or 90.173, paragraph
95.27(a)
, shall be paid to the permit holder according to section 16A.124 unless the refund is
95.28credited on another permit as provided in this chapter.

95.29    Sec. 51. Minnesota Statutes 2012, section 90.211, is amended to read:
95.3090.211 PURCHASE MONEY, WHEN FORFEITED.
95.31If the holder of an effective permit begins to cut and then fails to cut complete any
95.32part thereof of the permit before the expiration of the permit, the permit holder shall
95.33nevertheless pay the price therefor; but under no circumstances shall timber be cut after
95.34the expiration of the permit or extension thereof.

96.1    Sec. 52. Minnesota Statutes 2012, section 90.221, is amended to read:
96.290.221 TIMBER SALES RECORDS.
96.3The commissioner shall keep timber sales records, including the description of each
96.4tract of land from which any timber is sold; the date of the report of the state appraisers;
96.5the kind, amount, and value of the timber as shown by such report; the date of the sale;
96.6the price for which the timber was sold; the name of the purchaser; the number, date
96.7of issuance and date of expiration of each permit; the date of any assignment of the
96.8permit; the name of the assignee; the dates of the filing and the amounts of the respective
96.9bonds security deposits by the purchaser and assignee; the names of the sureties thereon;
96.10the amount of timber taken from the land; the date of the report of the scaler and state
96.11appraiser; the names of the scaler and the state appraiser who scaled the timber; and the
96.12amount paid for such timber and the date of payment.

96.13    Sec. 53. Minnesota Statutes 2012, section 90.252, subdivision 1, is amended to read:
96.14    Subdivision 1. Consumer scaling. The commissioner may enter into an agreement
96.15with either a timber sale permittee, or the purchaser of the cut products, or both, so
96.16that the scaling of the cut timber and the collection of the payment for the same can be
96.17consummated by the consumer state. Such an agreement shall be approved as to form and
96.18content by the attorney general and shall provide for a bond or cash in lieu of a bond and
96.19such other safeguards as are necessary to protect the interests of the state. The scaling
96.20and payment collection procedure may be used for any state timber sale, except that no
96.21permittee who is also the consumer shall both cut and scale the timber sold unless such
96.22scaling is supervised by a state scaler.

96.23    Sec. 54. Minnesota Statutes 2012, section 90.301, subdivision 2, is amended to read:
96.24    Subd. 2. Seizure of unlawfully cut timber. The commissioner may take possession
96.25of any timber hereafter unlawfully cut upon or taken from any land owned by the state
96.26wherever found and may sell the same informally or at public auction after giving such
96.27notice as the commissioner deems reasonable and after deducting all the expenses of such
96.28sale the proceeds thereof shall be paid into the state treasury to the credit of the proper
96.29fund; and when any timber so unlawfully cut has been intermingled with any other timber
96.30or property so that it cannot be identified or plainly separated therefrom the commissioner
96.31may so seize and sell the whole quantity so intermingled and, in such case, the whole
96.32quantity of such timber shall be conclusively presumed to have been unlawfully taken
96.33from state land. When the timber unlawfully cut or removed from state land is so seized
96.34and sold, the seizure shall not in any manner relieve the trespasser who cut or removed, or
97.1caused the cutting or removal of, any such timber from the full liability imposed by this
97.2chapter for the trespass so committed, but the net amount realized from such sale shall
97.3be credited on whatever judgment is recovered against such trespasser, if the trespass
97.4was deemed to be casual and involuntary.

97.5    Sec. 55. Minnesota Statutes 2012, section 90.301, subdivision 4, is amended to read:
97.6    Subd. 4. Apprehension of trespassers; reward. The commissioner may offer a
97.7reward to be paid to a person giving to the proper authorities any information that leads to
97.8the conviction of a person violating this chapter. The reward is limited to the greater of
97.9$100 or ten percent of the single stumpage value of any timber unlawfully cut or removed.
97.10The commissioner shall pay the reward from funds appropriated for that purpose or from
97.11receipts from the sale of state timber. A reward shall not be paid to salaried forest officers,
97.12state appraisers, scalers, conservation officers, or licensed peace officers.

97.13    Sec. 56. Minnesota Statutes 2012, section 90.41, subdivision 1, is amended to read:
97.14    Subdivision 1. Violations and penalty. (a) Any state scaler or state appraiser who
97.15shall accept any compensation or gratuity for services as such from any other source
97.16except the state of Minnesota, or any state scaler, or other person authorized to scale state
97.17timber, or state appraiser, who shall make any false report, or insert in any such report any
97.18false statement, or shall make any such report without having examined the land embraced
97.19therein or without having actually been upon the land, or omit from any such report any
97.20statement required by law to be made therein, or who shall fail to report any known trespass
97.21committed upon state lands, or who shall conspire with any other person in any manner, by
97.22act or omission or otherwise, to defraud or unlawfully deprive the state of Minnesota of any
97.23land or timber, or the value thereof, shall be guilty of a felony. Any material discrepancy
97.24between the facts and the scale returned by any such person scaling timber for the state
97.25shall be considered prima facie evidence that such person is guilty of violating this statute.
97.26(b) No such appraiser or scaler who has been once discharged for cause shall ever
97.27again be appointed. This provision shall not apply to resignations voluntarily made by and
97.28accepted from such employees.

97.29    Sec. 57. Minnesota Statutes 2012, section 92.50, is amended to read:
97.3092.50 UNSOLD LANDS SUBJECT TO SALE MAY BE LEASED.
97.31    Subdivision 1. Lease terms. (a) The commissioner of natural resources may lease
97.32land under the commissioner's jurisdiction and control:
97.33(1) to remove sand, gravel, clay, rock, marl, peat, and black dirt;
98.1(2) to store ore, waste materials from mines, or rock and tailings from ore milling
98.2plants;
98.3(3) for roads or railroads; or
98.4(4) for other uses consistent with the interests of the state.
98.5(b) The commissioner shall offer the lease at public or private sale for an amount
98.6and under terms and conditions prescribed by the commissioner. Commercial leases for
98.7more than ten years and leases for removal of peat that cover 320 or more acres must be
98.8approved by the Executive Council.
98.9(c) The lease term may not exceed 21 years except:
98.10(1) leases of lands for storage sites for ore, waste materials from mines, or rock and
98.11tailings from ore milling plants, or for the removal of peat for nonagricultural purposes
98.12may not exceed a term of 25 years; and
98.13(2) leases for commercial purposes, including major resort, convention center, or
98.14recreational area purposes, may not exceed a term of 40 years.
98.15(d) Leases must be subject to sale and leasing of the land for mineral purposes and
98.16contain a provision for cancellation for just cause at any time by the commissioner upon
98.17six months' written notice. A longer notice period, not exceeding three years, may be
98.18provided in leases for storing ore, waste materials from mines or rock or tailings from ore
98.19milling plants. The commissioner may determine the terms and conditions, including the
98.20notice period, for cancellation of a lease for the removal of peat and commercial leases.
98.21(e) Except as provided in subdivision 3, money received from leases under this
98.22section must be credited to the fund to which the land belongs.
98.23    Subd. 2. Leases for tailings deposits. The commissioner may grant leases and
98.24licenses to deposit tailings from any iron ore beneficiation plant in any public lake not
98.25exceeding 160 acres in area after holding a public hearing in the manner and under the
98.26procedure provided in Laws 1937, chapter 468, as amended and finding in pursuance
98.27of the hearing:
98.28(a) that such use of each lake is necessary and in the best interests of the public; and
98.29(b) that the proposed use will not result in pollution or sedimentation of any outlet
98.30stream.
98.31The lease or license may not exceed a term of 25 years and must be subject to
98.32cancellation on three years' notice. The commissioner may further restrict use of the lake
98.33to safeguard the public interest, and may require that the lessee or licensee acquire suitable
98.34permits or easements from the owners of lands riparian to the lake. Except as provided
98.35in subdivision 3, money received from the leases or licenses must be deposited in the
98.36permanent school fund.
99.1    Subd. 3. Application fees. (a) The commissioner shall, by written order, establish
99.2the schedule of application fees for all leases issued under this section. Notwithstanding
99.3section 16A.1285, subdivision 2, the application fees shall be set at a rate that neither
99.4significantly overrecovers nor underrecovers costs, including overhead costs, involved in
99.5providing the services at the time of issuing the leases. The commissioner shall update
99.6the schedule of application fees every five years. The schedule of application fees and
99.7any adjustment to the schedule are not subject to the rulemaking provision of chapter 14
99.8and section 14.386 does not apply.
99.9(b) Money received under this subdivision must be deposited in the land management
99.10account in the natural resources fund and is appropriated to the commissioner to cover the
99.11reasonable costs incurred for issuing leases.

99.12    Sec. 58. Minnesota Statutes 2012, section 93.17, subdivision 1, is amended to read:
99.13    Subdivision 1. Lease application. (a) Applications for leases to prospect for iron
99.14ore shall be presented to the commissioner in writing in such form as the commissioner
99.15may prescribe at any time before 4:30 p.m., St. Paul, Minnesota time, on the last business
99.16day before the day specified for the opening of bids, and no bids submitted after that time
99.17shall be considered. The application shall be accompanied by a certified check, cashier's
99.18check, or bank money order payable to the Department of Natural Resources in the sum of
99.19$100 $1,000 for each mining unit. The fee shall be deposited in the minerals management
99.20account in the natural resources fund.
99.21(b) Each application shall be accompanied by a sealed bid setting forth the amount
99.22of royalty per gross ton of crude ore based upon the iron content of the ore when dried at
99.23212 degrees Fahrenheit, in its natural condition or when concentrated, as set out in section
99.2493.20 , subdivisions 12 to 18, that the applicant proposes to pay to the state of Minnesota
99.25in case the lease shall be awarded.

99.26    Sec. 59. Minnesota Statutes 2012, section 93.1925, subdivision 2, is amended to read:
99.27    Subd. 2. Application. (a) An application for a negotiated lease shall be submitted to
99.28the commissioner of natural resources. The commissioner shall prescribe the information
99.29to be included in the application. The applicant shall submit with the application a certified
99.30check, cashier's check, or bank money order, payable to the Department of Natural
99.31Resources in the sum of $100 $2,000, as a fee for filing the application. The application
99.32fee shall not be refunded under any circumstances. The application fee shall be deposited
99.33in the minerals management account in the natural resources fund.
100.1(b) The right is reserved to the state to reject any or all applications for a negotiated
100.2lease.

100.3    Sec. 60. Minnesota Statutes 2012, section 93.25, subdivision 2, is amended to read:
100.4    Subd. 2. Lease requirements. (a) All leases for nonferrous metallic minerals or
100.5petroleum must be approved by the Executive Council, and any other mineral lease issued
100.6pursuant to this section that covers 160 or more acres must be approved by the Executive
100.7Council. The rents, royalties, terms, conditions, and covenants of all such leases shall be
100.8fixed by the commissioner according to rules adopted by the commissioner, but no lease
100.9shall be for a longer term than 50 years, and all rents, royalties, terms, conditions, and
100.10covenants shall be fully set forth in each lease issued. The rents and royalties shall be
100.11credited to the funds as provided in section 93.22.
100.12(b) The applicant for a lease must submit with the application a certified check,
100.13cashier's check, or bank money order payable to the Department of Natural Resources
100.14in the sum of:
100.15(1) $1,000 as a fee for filing an application for a lease being offered at public sale;
100.16(2) $1,000 as a fee for filing an application for a lease being offered under the
100.17preference rights lease availability list; and
100.18(3) $2,000 as a fee for filing an application for a lease through negotiation. The
100.19application fee for a negotiated lease shall not be refunded under any circumstances.
100.20The application fee must be deposited in the minerals management account in the natural
100.21resources fund.

100.22    Sec. 61. Minnesota Statutes 2012, section 93.285, subdivision 3, is amended to read:
100.23    Subd. 3. Stockpile mining unit. (a) Any stockpiled iron ore, wherever situated,
100.24may, in the discretion of the commissioner of natural resources, be designated as a
100.25stockpile mining unit for disposal separately from ore in the ground, such designation to
100.26be made according to section 93.15, so far as applicable.
100.27(b) The commissioner may lease the mining unit at public or private sale for an
100.28amount and under terms and conditions prescribed by the commissioner.
100.29(c) The applicant must submit with the application a certified check, cashier's check,
100.30or bank money order payable to the Department of Natural Resources in the sum of $1,000
100.31as a fee for filing an application for a lease being offered at public sale and in the sum of
100.32$2,000 as a fee for filing an application for a lease through negotiation. The application
100.33fee for a negotiated lease shall not be refunded under any circumstances. The application
100.34fee must be deposited in the minerals management account in the natural resources fund.
101.1(d) The lease term may not exceed 25 years. The amount payable for stockpiled iron
101.2ore material shall be at least equivalent to the minimum royalty that would be payable
101.3under section 93.20.

101.4    Sec. 62. Minnesota Statutes 2012, section 93.46, is amended by adding a subdivision
101.5to read:
101.6    Subd. 10. Scram mining. "Scram mining" means a mining operation that produces
101.7natural iron ore, natural iron ore concentrates, or taconite ore as described in section 93.20,
101.8subdivisions 12 to 18, from previously developed stockpiles, tailing basins, underground
101.9mine workings, or open pits and that involves no more than 80 acres of land not previously
101.10affected by mining, or more than 80 acres of land not previously affected by mining
101.11if the operator can demonstrate that impacts would be substantially the same as other
101.12scram operations. "Land not previously affected by mining" means land upon which mine
101.13wastes have not been deposited and land from which materials have not been removed in
101.14connection with the production or extraction of metallic minerals.

101.15    Sec. 63. Minnesota Statutes 2012, section 93.481, subdivision 3, is amended to read:
101.16    Subd. 3. Term of permit; amendment. (a) A permit issued by the commissioner
101.17pursuant to this section shall be granted for the term determined necessary by the
101.18commissioner for the completion of the proposed mining operation, including reclamation
101.19or restoration. The term of a scram mining permit for iron ore or taconite shall be
101.20determined in the same manner as a permit to mine for an iron ore or taconite mining
101.21operation.
101.22(b) A permit may be amended upon written application to the commissioner. A
101.23permit amendment application fee must be submitted with the written application.
101.24The permit amendment application fee is ten 20 percent of the amount provided for in
101.25subdivision 1, clause (3), for an application for the applicable permit to mine. If the
101.26commissioner determines that the proposed amendment constitutes a substantial change to
101.27the permit, the person applying for the amendment shall publish notice in the same manner
101.28as for a new permit, and a hearing shall be held if written objections are received in the
101.29same manner as for a new permit. An amendment may be granted by the commissioner if
101.30the commissioner determines that lawful requirements have been met.

101.31    Sec. 64. Minnesota Statutes 2012, section 93.481, is amended by adding a subdivision
101.32to read:
102.1    Subd. 4a. Release. A permit may not be released fully or partially without the
102.2written approval of the commissioner. A permit release application fee must be submitted
102.3with the written request for the release. The permit release application fee is 20 percent of
102.4the amount provided for in subdivision 1, clause (3), for an application for the applicable
102.5permit to mine.

102.6    Sec. 65. Minnesota Statutes 2012, section 93.481, subdivision 5, is amended to read:
102.7    Subd. 5. Assignment. A permit may not be assigned or otherwise transferred
102.8without the written approval of the commissioner. A permit assignment application fee
102.9must be submitted with the written application. The permit assignment application fee is
102.10ten 20 percent of the amount provided for in subdivision 1, clause (3), for an application
102.11for the applicable permit to mine.

102.12    Sec. 66. Minnesota Statutes 2012, section 93.481, is amended by adding a subdivision
102.13to read:
102.14    Subd. 5a. Preapplication. Before the preparation of an application for a permit to
102.15mine, persons intending to submit an application must meet with the commissioner for a
102.16preapplication conference and site visit. Prospective applicants must also meet with the
102.17commissioner to outline analyses and tests to be conducted if the results of the analyses
102.18and tests will be used for evaluation of the application. A permit preapplication fee must
102.19be submitted before the preapplication conferences, meetings, and site visit with the
102.20commissioner. The permit preapplication fee is 20 percent of the amount provided in
102.21subdivision 1, clause (3), for an application for the applicable permit to mine.

102.22    Sec. 67. Minnesota Statutes 2012, section 93.482, is amended to read:
102.2393.482 RECLAMATION FEES.
102.24    Subdivision 1. Annual permit to mine fee. (a) The commissioner shall charge
102.25every person holding a permit to mine an annual permit fee. The fee is payable to the
102.26commissioner by June 30 of each year, beginning in 2009.
102.27(b) The annual permit to mine fee for a an iron ore or taconite mining operation is
102.28$60,000 if the operation had production within the calendar year immediately preceding
102.29the year in which payment is due and $30,000 if there was no production within the
102.30immediately preceding calendar year $84,000.
102.31(c) The annual permit to mine fee for a nonferrous metallic minerals mining
102.32operation is $75,000 if the operation had production within the calendar year immediately
103.1preceding the year in which payment is due and $37,500 if there was no production within
103.2the immediately preceding calendar year.
103.3(d) The annual permit to mine fee for a scram mining operation is $5,000 if the
103.4operation had production within the calendar year immediately preceding the year in
103.5which payment is due and $2,500 if there was no production within the immediately
103.6preceding calendar year $10,250.
103.7(e) The annual permit to mine fee for a peat mining operation is $1,000 if the
103.8operation had production within the calendar year immediately preceding the year in
103.9which payment is due and $500 if there was no production within the immediately
103.10preceding calendar year $1,350.
103.11    Subd. 2. Supplemental application fee for taconite and nonferrous metallic
103.12minerals mining operation. (a) In addition to the application fee specified in section
103.1393.481 , the commissioner shall assess a person submitting an application for a permit
103.14to mine for a taconite or, a nonferrous metallic minerals mining, or peat operation the
103.15reasonable costs for reviewing the application and preparing the permit to mine. For
103.16nonferrous metallic minerals mining, the commissioner shall assess reasonable costs for
103.17monitoring construction of the mining facilities. The commissioner may assess a person
103.18submitting a request for amendment, assignment, or full or partial release of a permit to
103.19mine the reasonable costs for reviewing the request and issuing an approval or denial. The
103.20commissioner may assess a person submitting a request for a preapplication conference,
103.21meetings, and a site visit the reasonable costs for reviewing the request and meeting
103.22with the prospective applicant.
103.23(b) The commissioner must give the applicant an estimate of the supplemental
103.24application fee under this subdivision. The estimate must include a brief description
103.25of the tasks to be performed and the estimated cost of each task. The application fee
103.26under section 93.481 must be subtracted from the estimate of costs to determine the
103.27supplemental application fee.
103.28(c) The applicant and the commissioner shall enter into a written agreement to cover
103.29the estimated costs to be incurred by the commissioner.
103.30(d) The commissioner shall not issue the permit to mine until the applicant has paid
103.31all fees in full. The commissioner shall not issue an approved assignment, amendment,
103.32or release until the applicant has paid all fees in full. Upon completion of construction
103.33of a nonferrous metallic minerals facility, the commissioner shall refund the unobligated
103.34balance of the monitoring fee revenue.

104.1    Sec. 68. [93.60] MINERAL DATA AND INSPECTIONS ADMINISTRATION
104.2ACCOUNT.
104.3    Subdivision 1. Account established; sources. The mineral data and inspections
104.4administration account is established in the special revenue fund in the state treasury.
104.5Interest on the account accrues to the account. Fees charged under sections 93.61 and
104.6103I.601, subdivision 4a, shall be credited to the account.
104.7    Subd. 2. Appropriation; purposes of account. Money in the account is
104.8appropriated annually to the commissioner of natural resources to cover the costs of:
104.9(1) operating and maintaining the drill core library in Hibbing, Minnesota; and
104.10(2) conducting inspections of exploratory borings.

104.11    Sec. 69. [93.61] DRILL CORE LIBRARY ACCESS FEE.
104.12Notwithstanding section 13.03, subdivision 3, a person must pay a fee to access
104.13exploration data, exploration drill core data, mineral evaluation data, and mining data
104.14stored in the drill core library located in Hibbing, Minnesota, and managed by the
104.15commissioner of natural resources. The fee is $250 per day. Alternatively, a person may
104.16obtain an annual pass for a fee of $5,000. The fee must be credited to the mineral data and
104.17inspections administration account established in section 93.60 and is appropriated to the
104.18commissioner of natural resources for the reasonable costs of operating and maintaining
104.19the drill core library.

104.20    Sec. 70. [93.70] STATE-OWNED CONSTRUCTION AGGREGATES
104.21RECLAMATION ACCOUNT.
104.22    Subdivision 1. Account established; sources. The state-owned construction
104.23aggregates reclamation account is created in the special revenue fund in the state treasury.
104.24Interest on the account accrues to the account. Fees charged under section 93.71 shall be
104.25credited to the account.
104.26    Subd. 2. Appropriation; purposes of account. Money in the account is
104.27appropriated annually to the commissioner of natural resources to cover the costs of:
104.28(1) reclaiming state lands administered by the commissioner following cessation of
104.29construction aggregates mining operations on the lands; and
104.30(2) issuing and administering contracts needed for the performance of that
104.31reclamation work.

104.32    Sec. 71. [93.71] STATE-OWNED CONSTRUCTION AGGREGATES
104.33RECLAMATION FEE.
105.1    Subdivision 1. Annual reclamation fee; purpose. Except as provided in
105.2subdivision 4, the commissioner of natural resources shall charge a person who holds
105.3a lease or permit to mine construction aggregates on state land administered by the
105.4commissioner an annual reclamation fee. The fee is payable to the commissioner by
105.5January 15 of each year. The purpose of the fee is to pay for reclamation or restoration of
105.6state lands following temporary or permanent cessation of construction aggregates mining
105.7operations. Reclamation and restoration include: land sloping and contouring, spreading
105.8soil from stockpiles, planting vegetation, removing safety hazards, or other measures
105.9needed to return the land to productive and safe nonmining use.
105.10    Subd. 2. Determination of fee. The amount of the annual reclamation fee is
105.11determined as follows:
105.12(1) for aggregates measured in cubic yards upon removal, 15 cents for each cubic yard
105.13removed under the lease or permit within the immediately preceding calendar year; and
105.14(2) for aggregates measured in short tons upon removal, 11 cents per short ton
105.15removed under the lease or permit within the immediately preceding calendar year.
105.16    Subd. 3. Deposit of fees. All fees collected under this section must be deposited in
105.17the state-owned construction aggregates reclamation account established in section 93.70
105.18and credited for use to the same land class from which payment of the fee was derived.
105.19    Subd. 4. Exception. A person who holds a lease to mine construction aggregates on
105.20state land is not subject to the reclamation fee under subdivision 1 if the lease provides
105.21for continuous mining for five or more years at an average rate of 30,000 or more cubic
105.22yards per year over the term of the lease and requires the lessee to perform and pay for
105.23the reclamation.

105.24    Sec. 72. Minnesota Statutes 2012, section 97A.401, subdivision 3, is amended to read:
105.25    Subd. 3. Taking, possessing, and transporting wild animals for certain
105.26purposes. (a) Except as provided in paragraph (b), special permits may be issued without
105.27a fee to take, possess, and transport wild animals as pets and for scientific, educational,
105.28rehabilitative, wildlife disease prevention and control, and exhibition purposes. The
105.29commissioner shall prescribe the conditions for taking, possessing, transporting, and
105.30disposing of the wild animals.
105.31(b) A special permit may not be issued to take or possess wild or native deer for
105.32exhibition, propagation, or as pets.
105.33(c) Notwithstanding rules adopted under this section relating to wildlife rehabilitation
105.34permits, nonresident professional wildlife rehabilitators with a federal rehabilitation
105.35permit may possess and transport wildlife affected by oil spills.

106.1    Sec. 73. Minnesota Statutes 2012, section 103G.265, subdivision 2, is amended to read:
106.2    Subd. 2. Diversion greater than 2,000,000 gallons per day. A water use permit
106.3or a plan that requires a permit or the commissioner's approval, involving a diversion of
106.4waters of the state of more than 2,000,000 gallons per day average in a 30-day period,
106.5to a place outside of this state or from the basin of origin within this state may not be
106.6granted or approved until:
106.7(1) a determination is made by the commissioner that the water remaining in the
106.8basin of origin will be adequate to meet the basin's water resources needs during the
106.9specified life of the diversion project diversion is sustainable and meets the applicable
106.10standards under section 103G.287, subdivision 5; and
106.11(2) approval of the diversion is given by the legislature.

106.12    Sec. 74. Minnesota Statutes 2012, section 103G.265, subdivision 3, is amended to read:
106.13    Subd. 3. Consumptive use of more than 2,000,000 gallons per day. (a) Except
106.14as provided in paragraph (b), A water use permit or a plan that requires a permit or the
106.15commissioner's approval, involving a consumptive use of more than 2,000,000 gallons per
106.16day average in a 30-day period, may not be granted or approved until:
106.17(1) a determination is made by the commissioner that the water remaining in the
106.18basin of origin will be adequate to meet the basin's water resources needs during the
106.19specified life of the consumptive use is sustainable and meets the applicable standards
106.20under section 103G.287, subdivision 5; and
106.21(2) approval of the consumptive use is given by the legislature.
106.22(b) Legislative approval under paragraph (a), clause (2), is not required for a
106.23consumptive use in excess of 2,000,000 gallons per day average in a 30-day period for:
106.24(1) a domestic water supply, excluding industrial and commercial uses of a
106.25municipal water supply;
106.26(2) agricultural irrigation and processing of agricultural products;
106.27(3) construction and mine land dewatering;
106.28(4) pollution abatement or remediation; and
106.29(5) fish and wildlife enhancement projects using surface water sources.

106.30    Sec. 75. Minnesota Statutes 2012, section 103G.271, subdivision 1, is amended to read:
106.31    Subdivision 1. Permit required. (a) Except as provided in paragraph (b), the state,
106.32a person, partnership, or association, private or public corporation, county, municipality,
106.33or other political subdivision of the state may not appropriate or use waters of the state
106.34without a water use permit from the commissioner.
107.1(b) This section does not apply to use for a water supply by less than 25 persons
107.2for domestic purposes, except as required by the commissioner under section 103G.287,
107.3subdivision 4, paragraph (b).
107.4(c) The commissioner may issue a state general permit for appropriation of water to a
107.5governmental subdivision or to the general public. The general permit may authorize more
107.6than one project and the appropriation or use of more than one source of water. Water use
107.7permit processing fees and reports required under subdivision 6 and section 103G.281,
107.8subdivision 3
, are required for each project or water source that is included under a general
107.9permit, except that no fee is required for uses totaling less than 15,000,000 gallons annually.

107.10    Sec. 76. Minnesota Statutes 2012, section 103G.271, subdivision 4, is amended to read:
107.11    Subd. 4. Minimum use exemption and local approval of low use permits. (a)
107.12Except for local permits under section 103B.211, subdivision 4, a water use permit is not
107.13required for the appropriation and use of less than a minimum amount prescribed by the
107.14commissioner by rule 10,000 gallons per day and totaling no more than 1,000,000 gallons
107.15per year, except as required by the commissioner under section 103G.287, subdivision 4,
107.16paragraph (b).
107.17(b) Water use permits for more than the minimum amount but less than an
107.18intermediate amount prescribed by rule must be processed and approved at the municipal,
107.19county, or regional level based on rules adopted by the commissioner.
107.20(c) The rules must include provisions for reporting to the commissioner the amounts
107.21of water appropriated under local permits.

107.22    Sec. 77. Minnesota Statutes 2012, section 103G.271, subdivision 6, is amended to read:
107.23    Subd. 6. Water use permit processing fee. (a) Except as described in paragraphs
107.24(b) to (f), a water use permit processing fee must be prescribed by the commissioner in
107.25accordance with the schedule of fees in this subdivision for each water use permit in force
107.26at any time during the year. Fees collected under this paragraph are credited to the water
107.27management account in the natural resources fund. The schedule is as follows, with the
107.28stated fee in each clause applied to the total amount appropriated:
107.29    (1) $140 for amounts not exceeding 50,000,000 gallons per year;
107.30    (2) $3.50 for residential use, $15 per 1,000,000 gallons for amounts greater than
107.3150,000,000 gallons but less than 100,000,000 gallons per year;
107.32    (3) $4 (2) for use for metallic mine dewatering, mineral processing, and wood
107.33products processing, $8 per 1,000,000 gallons for amounts greater than 100,000,000
107.34gallons but less than 150,000,000 gallons per year;
108.1    (4) $4.50 (3) for use for agricultural irrigation, including sod farms, orchards, and
108.2nurseries, and for livestock watering, $22 per 1,000,000 gallons for amounts greater than
108.3150,000,000 gallons but less than 200,000,000 gallons per year;
108.4    (5) $5 (4) for nonagricultural irrigation, $70 per 1,000,000 gallons for amounts
108.5greater than 200,000,000 gallons but less than 250,000,000 gallons per year; and
108.6    (6) $5.50 (5) for all other uses, $30 per 1,000,000 gallons for amounts greater than
108.7250,000,000 gallons but less than 300,000,000 gallons per year;
108.8    (7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less
108.9than 350,000,000 gallons per year;
108.10    (8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but
108.11less than 400,000,000 gallons per year;
108.12    (9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less
108.13than 450,000,000 gallons per year;
108.14    (10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but
108.15less than 500,000,000 gallons per year; and
108.16    (11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.
108.17    (b) For once-through cooling systems, a water use processing fee must be prescribed
108.18by the commissioner in accordance with the following schedule of fees for each water use
108.19permit in force at any time during the year:
108.20    (1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and
108.21    (2) for all other users, $420 per 1,000,000 gallons.
108.22    (c) The fee is payable based on the amount of water appropriated during the year
108.23and, except as provided in paragraph (f), the minimum fee is $100 $140.
108.24    (d) For water use processing fees other than once-through cooling systems:
108.25    (1) the fee for a city of the first class may not exceed $250,000 $275,000 per year;
108.26    (2) the fee for other entities for any permitted use may not exceed:
108.27    (i) $60,000 $66,000 per year for an entity holding three or fewer permits;
108.28    (ii) $90,000 $99,000 per year for an entity holding four or five permits; or
108.29    (iii) $300,000 $330,000 per year for an entity holding more than five permits;
108.30    (3) the fee for agricultural wild rice irrigation may not exceed $750 per year;
108.31    (4) the fee for a municipality that furnishes electric service and cogenerates steam
108.32for home heating may not exceed $10,000 for its permit for water use related to the
108.33cogeneration of electricity and steam; and
108.34    (5) no fee is required for a project involving the appropriation of surface water to
108.35prevent flood damage or to remove flood waters during a period of flooding, as determined
108.36by the commissioner.
109.1    (e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two
109.2percent per month calculated from the original due date must be imposed on the unpaid
109.3balance of fees remaining 30 days after the sending of a second notice of fees due. A fee
109.4may not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal
109.5governmental agency holding a water appropriation permit.
109.6    (f) The minimum water use processing fee for a permit issued for irrigation of
109.7agricultural land is $20 for years in which:
109.8    (1) there is no appropriation of water under the permit; or
109.9    (2) the permit is suspended for more than seven consecutive days between May 1
109.10and October 1.
109.11    (g) A surcharge of $30 $75 per million gallons in addition to the fee prescribed
109.12in paragraph (a) shall be applied to the volume of water used in each of the months of
109.13May, June, July, and August, and September that exceeds the volume of water used in
109.14January for municipal water use, irrigation of golf courses, and landscape irrigation. The
109.15surcharge for municipalities with more than one permit shall be determined based on the
109.16total appropriations from all permits that supply a common distribution system.
109.17EFFECTIVE DATE.This section is effective January 1, 2014.

109.18    Sec. 78. Minnesota Statutes 2012, section 103G.282, is amended to read:
109.19103G.282 MONITORING TO EVALUATE IMPACTS FROM
109.20APPROPRIATIONS.
109.21    Subdivision 1. Monitoring equipment. The commissioner may require the
109.22installation and maintenance of install and maintain monitoring equipment to evaluate
109.23water resource impacts from permitted appropriations and proposed projects that require
109.24a permit. Monitoring for water resources that supply more than one appropriator must
109.25be designed to minimize costs to individual appropriators. The cost of drilling additional
109.26monitoring wells must be shared proportionally by all permit holders that are directly
109.27affecting a particular water resources feature. The commissioner may require a permit
109.28holder or a proposer of a project to install and maintain monitoring equipment to evaluate
109.29water resource impacts when the commissioner determines that the permitted or proposed
109.30water use is or has the potential to be the primary source of water resource impacts in an
109.31area.
109.32    Subd. 2. Measuring devices required. Monitoring installations required
109.33 established under subdivision 1 must be equipped with automated measuring devices
109.34to measure water levels, flows, or conditions. The commissioner may require a permit
110.1holder or a proposer of a project to perform water measurements. The commissioner
110.2may determine the frequency of measurements and other measuring methods based on
110.3the quantity of water appropriated or used, the source of water, potential connections to
110.4other water resources, the method of appropriating or using water, seasonal and long-term
110.5changes in water levels, and any other facts supplied to the commissioner.
110.6    Subd. 3. Reports and costs. (a) Records of water measurements under subdivision
110.72 must be kept for each installation. The measurements must be reported annually to the
110.8commissioner on or before February 15 of the following year in a format or on forms
110.9prescribed by the commissioner.
110.10(b) The owner or person permit holder or project proposer in charge of an installation
110.11for appropriating or using waters of the state or a proposal that requires a permit is
110.12responsible for all costs related to establishing and maintaining monitoring installations
110.13and to measuring and reporting data. Monitoring costs for water resources that supply
110.14more than one appropriator may be distributed among all users within a monitoring area
110.15determined by the commissioner and assessed based on volumes of water appropriated
110.16and proximity to resources of concern. The commissioner may require a permit holder or
110.17project proposer utilizing monitoring equipment installed by the commissioner to meet
110.18water measurement requirements to cover the costs related to measuring and reporting data.

110.19    Sec. 79. Minnesota Statutes 2012, section 103G.287, subdivision 1, is amended to read:
110.20    Subdivision 1. Applications for groundwater appropriations; preliminary well
110.21construction approval. (a) Groundwater use permit applications are not complete until
110.22the applicant has supplied:
110.23(1) a water well record as required by section 103I.205, subdivision 9, information
110.24on the subsurface geologic formations penetrated by the well and the formation or aquifer
110.25that will serve as the water source, and geologic information from test holes drilled to
110.26locate the site of the production well;
110.27(2) the maximum daily, seasonal, and annual pumpage rates and volumes being
110.28requested;
110.29(3) information on groundwater quality in terms of the measures of quality
110.30commonly specified for the proposed water use and details on water treatment necessary
110.31for the proposed use;
110.32(4) an inventory of existing wells within 1-1/2 miles of the proposed production well
110.33or within the area of influence, as determined by the commissioner. The inventory must
110.34include information on well locations, depths, geologic formations, depth of the pump or
110.35intake, pumping and nonpumping water levels, and details of well construction; and
111.1(5) the results of an aquifer test completed according to specifications approved by
111.2the commissioner. The test must be conducted at the maximum pumping rate requested
111.3in the application and for a length of time adequate to assess or predict impacts to other
111.4wells and surface water and groundwater resources. The permit applicant is responsible
111.5for all costs related to the aquifer test, including the construction of groundwater and
111.6surface water monitoring installations, and water level readings before, during, and after
111.7the aquifer test; and
111.8(6) the results of any assessments conducted by the commissioner under paragraph (c).
111.9(b) The commissioner may waive an application requirement in this subdivision
111.10if the information provided with the application is adequate to determine whether the
111.11proposed appropriation and use of water is sustainable and will protect ecosystems, water
111.12quality, and the ability of future generations to meet their own needs.
111.13(c) The commissioner shall provide an assessment of a proposed well needing a
111.14groundwater appropriation permit. The commissioner shall evaluate the information
111.15submitted as required under section 103I.205, subdivision 1, paragraph (f), and determine
111.16whether the anticipated appropriation request is likely to meet the applicable requirements
111.17of this chapter. If the appropriation request is likely to meet applicable requirements, the
111.18commissioner shall provide the person submitting the information with a letter providing
111.19preliminary approval to construct the well.

111.20    Sec. 80. Minnesota Statutes 2012, section 103G.287, subdivision 4, is amended to read:
111.21    Subd. 4. Groundwater management areas. (a) The commissioner may designate
111.22groundwater management areas and limit total annual water appropriations and uses within
111.23a designated area to ensure sustainable use of groundwater that protects ecosystems, water
111.24quality, and the ability of future generations to meet their own needs. Water appropriations
111.25and uses within a designated management area must be consistent with a plan approved by
111.26the commissioner that addresses water conservation requirements and water allocation
111.27priorities established in section 103G.261.
111.28(b) Within designated groundwater management areas, the commissioner may
111.29require permits as specified in section 103G.271 for all water users, including those using
111.30less than 10,000 gallons per day or 1,000,000 gallons per year and water supplies serving
111.31less than 25 persons for domestic purposes.

111.32    Sec. 81. Minnesota Statutes 2012, section 103G.287, subdivision 5, is amended to read:
111.33    Subd. 5. Interference with other wells Sustainability standard. The
111.34commissioner may issue water use permits for appropriation from groundwater only if
112.1the commissioner determines that the groundwater use is sustainable to supply the needs
112.2of future generations and the proposed use will not harm ecosystems, degrade water, or
112.3reduce water levels beyond the reach of public water supply and private domestic wells
112.4constructed according to Minnesota Rules, chapter 4725.

112.5    Sec. 82. Minnesota Statutes 2012, section 103G.615, subdivision 2, is amended to read:
112.6    Subd. 2. Fees. (a) The commissioner shall establish a fee schedule for permits to
112.7control or harvest aquatic plants other than wild rice. The fees must be set by rule, and
112.8section 16A.1283 does not apply, but the rule must not take effect until 45 legislative
112.9days after it has been reported to the legislature. The fees shall not exceed $2,500 per
112.10permit and shall be based upon the cost of receiving, processing, analyzing, and issuing
112.11the permit, and additional costs incurred after the application to inspect and monitor
112.12the activities authorized by the permit, and enforce aquatic plant management rules and
112.13permit requirements. The permit fee, in the form of a check or money order payable to the
112.14Minnesota Department of Natural Resources, must accompany each permit application.
112.15When application is made to control two or more shoreline nuisance conditions, only the
112.16larger fee applies. Permit fees are:
112.17    (b) A fee for a permit for the (1) to control of rooted aquatic vegetation plants
112.18by pesticide or mechanical means, $35 for each contiguous parcel of shoreline owned
112.19by an owner may be charged, including a three-year automatic aquatic plant control
112.20device permit. This fee may not be charged for permits issued in connection with purple
112.21loosestrife control or lakewide Eurasian water milfoil control programs. or baywide
112.22invasive aquatic plant management permits;
112.23(2) to control filamentous algae, snails that carry swimmer's itch, or leeches, singly
112.24or in combination, $40 for each contiguous parcel or shoreline with a distinct owner;
112.25(3) for offshore control of submersed aquatic plants by pesticide or mechanical
112.26means, $90;
112.27(4) to control plankton algae or free-floating aquatic plants by lakewide or baywide
112.28application of approved pesticides, $90;
112.29(5) for a commercial mechanical control permit, $100 annually, and;
112.30(6) for a commercial harvest permit, $100 plus $300 for each public water listed on
112.31the application that requires an inspection. An inspection is required for waters with no
112.32previous permit history and may be required at other times to monitor the status of the
112.33aquatic plant population.
112.34(b) There is no permit fee for:
112.35(1) permits to transplant aquatic plants in public waters;
113.1(2) permits to move or remove a floating bog in public waters if the floating bog is
113.2lodged against the permittee's property and has not taken root;
113.3(3) invasive aquatic plant management permits; or
113.4    (c) A fee may not be charged to (4) permits applied for by the state or a federal
113.5governmental agency applying for a permit.
113.6    (d) (c) A fee for a permit for the control of rooted aquatic vegetation in a public
113.7water basin that is 20 acres or less in size shall be is one-half of the fee established under
113.8paragraph (a), clause (1).
113.9(d) If the fee does not accompany the application, the applicant shall be notified and
113.10no action will be taken on the application until the fee is received.
113.11(e) A fee is refundable only when the application is withdrawn prior to field
113.12inspection or issuance or denial of the permit or when the commissioner determines that
113.13the activity does not require a permit.
113.14(e) (f) The money received for the permits under this subdivision shall be deposited
113.15in the treasury and credited to the water recreation account in the natural resources fund.
113.16(f) (g) The fee for processing a notification to request authorization for work under
113.17a general permit is $30, until the commissioner establishes a fee by rule as provided
113.18under this subdivision.

113.19    Sec. 83. Minnesota Statutes 2012, section 103I.205, subdivision 1, is amended to read:
113.20    Subdivision 1. Notification required. (a) Except as provided in paragraphs (d)
113.21and (e), a person may not construct a well until a notification of the proposed well on a
113.22form prescribed by the commissioner is filed with the commissioner with the filing fee in
113.23section 103I.208, and, when applicable, the person has met the requirements of paragraph
113.24(f). If after filing the well notification an attempt to construct a well is unsuccessful, a
113.25new notification is not required unless the information relating to the successful well
113.26has substantially changed.
113.27(b) The property owner, the property owner's agent, or the well contractor where a
113.28well is to be located must file the well notification with the commissioner.
113.29(c) The well notification under this subdivision preempts local permits and
113.30notifications, and counties or home rule charter or statutory cities may not require a
113.31permit or notification for wells unless the commissioner has delegated the permitting or
113.32notification authority under section 103I.111.
113.33(d) A person who is an individual that constructs a drive point well on property
113.34owned or leased by the individual for farming or agricultural purposes or as the individual's
113.35place of abode must notify the commissioner of the installation and location of the well.
114.1The person must complete the notification form prescribed by the commissioner and mail
114.2it to the commissioner by ten days after the well is completed. A fee may not be charged
114.3for the notification. A person who sells drive point wells at retail must provide buyers
114.4with notification forms and informational materials including requirements regarding
114.5wells, their location, construction, and disclosure. The commissioner must provide the
114.6notification forms and informational materials to the sellers.
114.7(e) A person may not construct a monitoring well until a permit is issued by the
114.8commissioner for the construction. If after obtaining a permit an attempt to construct a
114.9well is unsuccessful, a new permit is not required as long as the initial permit is modified
114.10to indicate the location of the successful well.
114.11(f) When the operation of a well will require an appropriation permit from the
114.12commissioner of natural resources, a person may not begin construction of the well until
114.13the person submits the following information to the commissioner of natural resources:
114.14(1) the location of the well;
114.15(2) the formation or aquifer that will serve as the water source;
114.16(3) the maximum daily, seasonal, and annual pumpage rates and volumes that will
114.17be requested in the appropriation permit; and
114.18(4) other information requested by the commissioner of natural resources that
114.19is necessary to conduct the preliminary assessment required under section 103G.287,
114.20subdivision 1, paragraph (c).
114.21The person may begin construction after receiving preliminary approval from the
114.22commissioner of natural resources.

114.23    Sec. 84. Minnesota Statutes 2012, section 103I.601, is amended by adding a
114.24subdivision to read:
114.25    Subd. 4a. Exploratory boring inspection fee. For each proposed exploratory
114.26boring identified on the map submitted under subdivision 4, an explorer must submit a fee
114.27of $2,000 to the commissioner of natural resources. The fee must be credited to the mineral
114.28data and inspections administration account established in section 93.60 and is appropriated
114.29to the commissioner of natural resources for the reasonable costs incurred for inspections
114.30of exploratory borings by the commissioner of natural resources or the commissioner's
114.31representative. The fee is nonrefundable, even if the exploratory boring is not conducted.

114.32    Sec. 85. Minnesota Statutes 2012, section 114D.50, subdivision 4, is amended to read:
114.33    Subd. 4. Expenditures; accountability. (a) A project receiving funding from the
114.34clean water fund must meet or exceed the constitutional requirements to protect, enhance,
115.1and restore water quality in lakes, rivers, and streams and to protect groundwater and
115.2drinking water from degradation. Priority may be given to projects that meet more than
115.3one of these requirements. A project receiving funding from the clean water fund shall
115.4include measurable outcomes, as defined in section 3.303, subdivision 10, and a plan for
115.5measuring and evaluating the results. A project must be consistent with current science
115.6and incorporate state-of-the-art technology.
115.7(b) Money from the clean water fund shall be expended to balance the benefits
115.8across all regions and residents of the state.
115.9(c) A state agency or other recipient of a direct appropriation from the clean
115.10water fund must compile and submit all information for proposed and funded projects
115.11or programs, including the proposed measurable outcomes and all other items required
115.12under section 3.303, subdivision 10, to the Legislative Coordinating Commission as soon
115.13as practicable or by January 15 of the applicable fiscal year, whichever comes first. The
115.14Legislative Coordinating Commission must post submitted information on the Web site
115.15required under section 3.303, subdivision 10, as soon as it becomes available. Information
115.16classified as not public under section 13D.05, subdivision 3, paragraph (d), is not required
115.17to be placed on the Web site.
115.18(d) Grants funded by the clean water fund must be implemented according to section
115.1916B.98 and must account for all expenditures. Proposals must specify a process for any
115.20regranting envisioned. Priority for grant proposals must be given to proposals involving
115.21grants that will be competitively awarded.
115.22(e) Money from the clean water fund may only be spent on projects that benefit
115.23Minnesota waters.
115.24(f) When practicable, a direct recipient of an appropriation from the clean water fund
115.25shall prominently display on the recipient's Web site home page the legacy logo required
115.26under Laws 2009, chapter 172, article 5, section 10, as amended by Laws 2010, chapter
115.27361, article 3, section 5, accompanied by the phrase "Click here for more information."
115.28When a person clicks on the legacy logo image, the Web site must direct the person to
115.29a Web page that includes both the contact information that a person may use to obtain
115.30additional information, as well as a link to the Legislative Coordinating Commission Web
115.31site required under section 3.303, subdivision 10.
115.32(g) Future eligibility for money from the clean water fund is contingent upon a state
115.33agency or other recipient satisfying all applicable requirements in this section, as well as
115.34any additional requirements contained in applicable session law.
116.1(h) Money from the clean water fund may be used to leverage federal funds through
116.2execution of formal project partnership agreements with federal agencies consistent with
116.3respective federal agency partnership agreement requirements.

116.4    Sec. 86. [115.84] WASTEWATER LABORATORY CERTIFICATION.
116.5    Subdivision 1. Wastewater laboratory certification required. (a) Laboratories
116.6performing wastewater or water analytical laboratory work, the results of which are
116.7reported to the agency to determine compliance with a national pollutant discharge
116.8elimination system (NPDES) permit condition or other regulatory document, must be
116.9certified according to this section.
116.10(b) This section does not apply to:
116.11(1) laboratories that are private and for-profit;
116.12(2) laboratories that perform drinking water analyses; or
116.13(3) laboratories that perform remediation program analyses, such as Superfund or
116.14petroleum analytical work.
116.15(c) Until adoption of rules under subdivision 2, laboratories required to be certified
116.16under this section that submit data to the agency must register by submitting registration
116.17information required by the agency or be certified or accredited by a recognized authority,
116.18such as the commissioner of health under sections 144.97 to 144.99, for the analytical
116.19methods required by the agency.
116.20    Subd. 2. Rules. The agency may adopt rules to govern certification of laboratories
116.21according to this section. Notwithstanding section 16A.1283, the agency may adopt
116.22rules establishing fees.
116.23    Subd. 3. Fees. (a) Until the agency adopts a rule establishing fees for certification,
116.24the agency shall collect fees from laboratories registering with the agency but not
116.25accredited by the commissioner of health under sections 144.97 to 144.99, in amounts
116.26necessary to cover the reasonable costs of the certification program, including reviewing
116.27applications, issuing certifications, and conducting audits and compliance assistance.
116.28(b) Fees under this section must be based on the number, type, and complexity of
116.29analytical methods that laboratories are certified to perform.
116.30(c) Revenue from fees charged by the agency for certification shall be credited to
116.31the environmental fund.
116.32    Subd. 4. Enforcement. (a) The commissioner may deny, suspend, or revoke
116.33wastewater laboratory certification for, but is not limited to, any of the following reasons:
116.34fraud, failure to follow applicable requirements, failure to respond to documented
117.1deficiencies or complete corrective actions necessary to address deficiencies, failure to pay
117.2certification fees, or other violations of federal or state law.
117.3(b) This section and the rules adopted under it may be enforced by any means
117.4provided in section 115.071.

117.5    Sec. 87. Minnesota Statutes 2012, section 115A.1320, subdivision 1, is amended to read:
117.6    Subdivision 1. Duties of the agency. (a) The agency shall administer sections
117.7115A.1310 to 115A.1330.
117.8    (b) The agency shall establish procedures for:
117.9    (1) receipt and maintenance of the registration statements and certifications filed
117.10with the agency under section 115A.1312; and
117.11    (2) making the statements and certifications easily available to manufacturers,
117.12retailers, and members of the public.
117.13    (c) The agency shall annually review the value of the following variables that are
117.14part of the formula used to calculate a manufacturer's annual registration fee under section
117.15115A.1314, subdivision 1 :
117.16    (1) the proportion of sales of video display devices sold to households that
117.17manufacturers are required to recycle;
117.18    (2) the estimated per-pound price of recycling covered electronic devices sold to
117.19households;
117.20    (3) the base registration fee; and
117.21    (4) the multiplier established for the weight of covered electronic devices collected
117.22in section 115A.1314, subdivision 1, paragraph (d). If the agency determines that any of
117.23these values must be changed in order to improve the efficiency or effectiveness of the
117.24activities regulated under sections 115A.1312 to 115A.1330, the agency shall submit
117.25recommended changes and the reasons for them to the chairs of the senate and house of
117.26representatives committees with jurisdiction over solid waste policy.
117.27    (d) By January 15 each year, beginning in 2008, the agency shall calculate estimated
117.28sales of video display devices sold to households by each manufacturer during the preceding
117.29program year, based on national sales data, and forward the estimates to the department.
117.30    (e) The agency shall provide a report to the governor and the legislature on the
117.31implementation of sections 115A.1310 to 115A.1330. For each program year, the report
117.32must discuss the total weight of covered electronic devices recycled and a summary
117.33of information in the reports submitted by manufacturers and recyclers under section
117.34115A.1316 . The report must also discuss the various collection programs used by
117.35manufacturers to collect covered electronic devices; information regarding covered
118.1electronic devices that are being collected by persons other than registered manufacturers,
118.2collectors, and recyclers; and information about covered electronic devices, if any, being
118.3disposed of in landfills in this state. The report must include a description of enforcement
118.4actions under sections 115A.1310 to 115A.1330. The agency may include in its report
118.5other information received by the agency regarding the implementation of sections
118.6115A.1312 to 115A.1330. The report must be done in conjunction with the report required
118.7under section 115D.10 115A.121.
118.8    (f) The agency shall promote public participation in the activities regulated under
118.9sections 115A.1312 to 115A.1330 through public education and outreach efforts.
118.10    (g) The agency shall enforce sections 115A.1310 to 115A.1330 in the manner
118.11provided by sections 115.071, subdivisions 1, 3, 4, 5, and 6; and 116.072, except for those
118.12provisions enforced by the department, as provided in subdivision 2. The agency may
118.13revoke a registration of a collector or recycler found to have violated sections 115A.1310
118.14to 115A.1330.
118.15    (h) The agency shall facilitate communication between counties, collection and
118.16recycling centers, and manufacturers to ensure that manufacturers are aware of video
118.17display devices available for recycling.
118.18    (i) The agency shall develop a form retailers must use to report information to
118.19manufacturers under section 115A.1318 and post it on the agency's Web site.
118.20    (j) The agency shall post on its Web site the contact information provided by each
118.21manufacturer under section 115A.1318, paragraph (e).

118.22    Sec. 88. [115A.141] CARPET PRODUCT STEWARDSHIP PROGRAM;
118.23STEWARDSHIP PLAN.
118.24    Subdivision 1. Definitions. For purposes of this section, the following terms have
118.25the meanings given:
118.26(1) "brand" means a name, symbol, word, or mark that identifies carpet, rather than its
118.27components, and attributes the carpet to the owner or licensee of the brand as the producer;
118.28(2) "carpet" means a manufactured article that is used in commercial or single or
118.29multifamily residential buildings, is affixed or placed on the floor or building walking
118.30surface as a decorative or functional building interior or exterior feature, and is primarily
118.31constructed of a top visible surface of synthetic face fibers or yarns or tufts attached to a
118.32backing system derived from synthetic or natural materials. Carpet includes, but is not
118.33limited to, a commercial or residential broadloom carpet or modular carpet tiles. Carpet
118.34includes a pad or underlayment used in conjunction with a carpet. Carpet does not include
118.35handmade rugs, area rugs, or mats;
119.1(3) "discarded carpet" means carpet that is no longer used for its manufactured
119.2purpose;
119.3(4) "producer" means a person that:
119.4(i) has legal ownership of the brand, brand name, or cobrand of carpet sold in the state;
119.5(ii) imports carpet branded by a producer that meets subclause (i) when the producer
119.6has no physical presence in the United States;
119.7(iii) if subclauses (i) and (ii) do not apply, makes unbranded carpet that is sold
119.8in the state; or
119.9(iv) sells carpet at wholesale or retail, does not have legal ownership of the brand,
119.10and elects to fulfill the responsibilities of the producer for the carpet by certifying that
119.11election in writing to the commissioner;
119.12(5) "recycling" means the process of collecting and preparing recyclable materials and
119.13reusing the materials in their original form or using them in manufacturing processes that
119.14do not cause the destruction of recyclable materials in a manner that precludes further use;
119.15(6) "retailer" means any person who offers carpet for sale at retail in the state;
119.16(7) "reuse" means donating or selling a collected carpet back into the market for
119.17its original intended use, when the carpet retains its original purpose and performance
119.18characteristics;
119.19(8) "sale" or "sell" means transfer of title of carpet for consideration, including a
119.20remote sale conducted through a sales outlet, catalog, Web site, or similar electronic
119.21means. Sale or sell includes a lease through which carpet is provided to a consumer by a
119.22producer, wholesaler, or retailer;
119.23(9) "stewardship assessment" means the amount added to the purchase price of
119.24carpet sold in the state that is necessary to cover the cost of collecting, transporting, and
119.25processing postconsumer carpets by the producer or stewardship organization pursuant to
119.26a product stewardship program;
119.27(10) "stewardship organization" means an organization appointed by one or more
119.28producers to act as an agent on behalf of the producer to design, submit, and administer a
119.29product stewardship program under this section; and
119.30(11) "stewardship plan" means a detailed plan describing the manner in which a
119.31product stewardship program under subdivision 2 will be implemented.
119.32    Subd. 2. Product stewardship program. For all carpet sold in the state, producers
119.33must, individually or through a stewardship organization, implement and finance a
119.34statewide product stewardship program that manages carpet by reducing carpet's waste
119.35generation, promoting its reuse and recycling, and providing for negotiation and execution
119.36of agreements to collect, transport, and process carpet for end-of-life recycling and reuse.
120.1    Subd. 3. Requirement for sale. (a) On and after July 1, 2015, no producer,
120.2wholesaler, or retailer may sell carpet or offer carpet for sale in the state unless the carpet's
120.3producer participates in an approved stewardship plan, either individually or through a
120.4stewardship organization.
120.5(b) Each producer must operate a product stewardship program approved by the
120.6agency or enter into an agreement with a stewardship organization to operate, on the
120.7producer's behalf, a product stewardship program approved by the agency.
120.8    Subd. 4. Requirement to submit plan. (a) On or before March 1, 2015, and before
120.9offering carpet for sale in the state, a producer must submit a stewardship plan to the
120.10agency and receive approval of the plan or must submit documentation to the agency that
120.11demonstrates the producer has entered into an agreement with a stewardship organization
120.12to be an active participant in an approved product stewardship program as described in
120.13subdivision 2. A stewardship plan must include all elements required under subdivision 5.
120.14(b) At least every three years, a producer or stewardship organization operating a
120.15product stewardship program must update the stewardship plan and submit the updated
120.16plan to the agency for review and approval.
120.17(c) It is the responsibility of the entities responsible for each stewardship plan to
120.18notify the agency within 30 days of any significant changes or modifications to the plan or
120.19its implementation. Within 30 days of the notification, a written plan revision must be
120.20submitted to the agency for review and approval.
120.21    Subd. 5. Stewardship plan content. A stewardship plan must contain:
120.22(1) certification that the product stewardship program will accept all discarded carpet
120.23regardless of which producer produced the carpet and its individual components;
120.24(2) contact information for the individual and the entity submitting the plan and for
120.25all producers participating in the product stewardship program;
120.26(3) a description of the methods by which discarded carpet will be collected in all
120.27areas in the state without relying on end-of-life fees, including an explanation of how the
120.28collection system will be convenient and adequate to serve the needs of small businesses
120.29and residents in the seven-county metropolitan area initially and expanding to areas
120.30outside of the seven-county metropolitan area starting July 1, 2016;
120.31(4) a description of how the adequacy of the collection program will be monitored
120.32and maintained;
120.33(5) the names and locations of collectors, transporters, and recycling facilities that
120.34will manage discarded carpet;
121.1(6) a description of how the discarded carpet and the carpet's components will
121.2be safely and securely transported, tracked, and handled from collection through final
121.3recycling and processing;
121.4(7) a description of the method that will be used to reuse, deconstruct, or recycle
121.5the discarded carpet to ensure that the product's components, to the extent feasible, are
121.6transformed or remanufactured into finished products for use;
121.7(8) a description of the promotion and outreach activities that will be used to
121.8encourage participation in the collection and recycling programs and how the activities'
121.9effectiveness will be evaluated and the program modified, if necessary;
121.10(9) the proposed stewardship assessment. The producer or stewardship organization
121.11shall propose a stewardship assessment for any carpet sold in the state. The proposed
121.12stewardship assessment shall be reviewed by an independent auditor to ensure that
121.13the assessment does not exceed the costs of the product stewardship program and the
121.14independent auditor shall recommend an amount for the stewardship assessment;
121.15(10) evidence of adequate insurance and financial assurance that may be required for
121.16collection, handling, and disposal operations;
121.17(11) five-year performance goals, including an estimate of the percentage of
121.18discarded carpet that will be collected, reused, and recycled during each of the first five
121.19years of the stewardship plan. The performance goals must include a specific escalating
121.20goal for the amount of discarded carpet that will be collected and recycled and reused
121.21during each year of the plan. The performance goals must be based on:
121.22(i) the most recent collection data available for the state;
121.23(ii) the amount of carpet disposed of annually;
121.24(iii) the weight of the carpet that is expected to be available for collection annually;
121.25and
121.26(iv) actual collection data from other existing stewardship programs.
121.27The stewardship plan must state the methodology used to determine these goals;
121.28(12) carpet design changes that will be considered to reduce toxicity, water use, or
121.29energy use or to increase recycled content, recyclability, or carpet longevity; and
121.30(13) a discussion of market development opportunities to expand use of recovered
121.31carpet, with consideration of expanding processing activity near areas of collection.
121.32    Subd. 6. Consultation required. (a) Each stewardship organization or individual
121.33producer submitting a stewardship plan must consult with stakeholders including retailers,
121.34installers, collectors, recyclers, local government, customers, and citizens during the
121.35development of the plan, solicit stakeholder comments, and attempt to address any
121.36stakeholder concerns regarding the plan before submitting the plan to the agency for review.
122.1(b) The producer or stewardship organization must invite comments from local
122.2governments, communities, and citizens to report their satisfaction with services, including
122.3education and outreach, provided by the product stewardship program. The information
122.4must be submitted to the agency and used by the agency in reviewing proposed updates or
122.5changes to the stewardship plan.
122.6    Subd. 7. Agency review and approval. (a) Within 90 days after receipt of a proposed
122.7stewardship plan, the agency shall determine whether the plan complies with subdivision
122.85. If the agency approves a plan, the agency shall notify the applicant of the plan approval
122.9in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of
122.10the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must
122.11submit a revised plan to the agency within 60 days after receiving notice of rejection.
122.12(b) Any proposed changes to a stewardship plan must be approved by the agency
122.13in writing.
122.14    Subd. 8. Plan availability. All draft and approved stewardship plans shall be
122.15placed on the agency's Web site for at least 30 days and made available at the agency's
122.16headquarters for public review and comment.
122.17    Subd. 9. Conduct authorized. A producer or stewardship organization that
122.18organizes collection, transport, and processing of carpet under this section is immune
122.19from liability for the conduct under state laws relating to antitrust, restraint of trade,
122.20unfair trade practices, and other regulation of trade or commerce only to the extent that
122.21the conduct is necessary to plan and implement the producer's or organization's chosen
122.22organized collection or recycling system.
122.23    Subd. 10. Responsibility of producers. (a) On and after the date of implementation
122.24of a product stewardship program under this section, a producer of carpet must add the
122.25stewardship assessment, as established according to subdivision 5, clause (9), to the cost
122.26of the carpet sold to retailers and distributors in the state by the producer.
122.27(b) Producers of carpet or the stewardship organization shall provide consumers
122.28with educational materials regarding the stewardship assessment and product stewardship
122.29program. The materials must include, but are not limited to, information regarding available
122.30end-of-life management options for carpet offered through the product stewardship
122.31program and information that notifies consumers that a charge for the operation of the
122.32product stewardship program is included in the purchase price of carpet sold in the state.
122.33    Subd. 11. Responsibility of retailers. (a) On and after July 1, 2015, no carpet may
122.34be sold in the state unless the carpet's producer is participating in an approved stewardship
122.35plan.
123.1(b) On and after the implementation date of a product stewardship program under
123.2this section, each retailer or distributor, as applicable, must ensure that the full amount of
123.3the stewardship assessment added to the cost of carpet by producers under subdivision 10
123.4is included in the purchase price of all carpet sold in the state.
123.5(c) Any retailer may participate, on a voluntary basis, as a designated collection
123.6point pursuant to a product stewardship program under this section and in accordance
123.7with applicable law.
123.8(d) No retailer or distributor shall be found to be in violation of this subdivision if,
123.9on the date the carpet was ordered from the producer or its agent, the producer was listed
123.10as compliant on the agency's Web site according to subdivision 14.
123.11    Subd. 12. Stewardship reports. Beginning October 1, 2016, producers of carpet
123.12sold in the state must individually or through a stewardship organization submit an
123.13annual report to the agency describing the product stewardship program. At a minimum,
123.14the report must contain:
123.15(1) a description of the methods used to collect, transport, and process carpet in all
123.16regions of the state;
123.17(2) the weight of all carpet collected in all regions of the state and a comparison to
123.18the performance goals and recycling rates established in the stewardship plan;
123.19(3) the amount of unwanted carpet collected in the state by method of disposition,
123.20including reuse, recycling, and other methods of processing;
123.21(4) identification of the facilities processing carpet and the number and weight
123.22processed at each facility;
123.23(5) an evaluation of the program's funding mechanism;
123.24(6) samples of educational materials provided to consumers and an evaluation of the
123.25effectiveness of the materials and the methods used to disseminate the materials; and
123.26(7) a description of progress made toward achieving carpet design changes according
123.27to subdivision 5, clause (12).
123.28    Subd. 13. Sales information. Sales information provided to the commissioner
123.29under this section is classified as private or nonpublic data, as specified in section
123.30115A.06, subdivision 13.
123.31    Subd. 14. Agency responsibilities. The agency shall provide, on its Web site, a
123.32list of all compliant producers and brands participating in stewardship plans that the
123.33agency has approved and a list of all producers and brands the agency has identified as
123.34noncompliant with this section.
123.35    Subd. 15. Local government responsibilities. (a) A city, county, or other public
123.36agency may choose to participate voluntarily in a carpet product stewardship program.
124.1(b) Cities, counties, and other public agencies are encouraged to work with producers
124.2and stewardship organizations to assist in meeting product stewardship program recycling
124.3obligations, by providing education and outreach or using other strategies.
124.4(c) A city, county, or other public agency that participates in a product stewardship
124.5program must report for the first year of the program to the agency using the reporting
124.6form provided by the agency on the cost savings as a result of participation and describe
124.7how the savings were used.
124.8    Subd. 16. Administrative fee. (a) The stewardship organization or individual
124.9producer submitting a stewardship plan shall pay an annual administrative fee to the
124.10commissioner. The agency may establish a variable fee based on relevant factors,
124.11including, but not limited to, the portion of carpet sold in the state by members of the
124.12organization compared to the total amount of carpet sold in the state by all organizations
124.13submitting a stewardship plan.
124.14    (b) Prior to July 1, 2015, and before July 1 annually thereafter, the agency shall
124.15identify the costs it incurs under this section. The agency shall set the fee at an amount
124.16that, when paid by every stewardship organization or individual producer that submits a
124.17stewardship plan, is adequate to reimburse the agency's full costs of administering this
124.18section. The total amount of annual fees collected under this subdivision must not exceed
124.19the amount necessary to reimburse costs incurred by the agency to administer this section.
124.20    (c) A stewardship organization or individual producer subject to this subdivision
124.21must pay the agency's administrative fee under paragraph (a) on or before July 1, 2015 and
124.22annually thereafter. Each year after the initial payment, the annual administrative fee may
124.23not exceed five percent of the aggregate stewardship assessment added to the cost of all
124.24carpet sold by producers in the state for the preceding calendar year.
124.25    (d) All fees received under this section shall be deposited to the state treasury and
124.26credited to a product stewardship account in the Special Revenue Fund. Money in the
124.27account is appropriated to the commissioner for the purpose of reimbursing the agency's
124.28costs incurred to administer this section.

124.29    Sec. 89. [115A.1415] ARCHITECTURAL PAINT; PRODUCT STEWARDSHIP
124.30PROGRAM; STEWARDSHIP PLAN.
124.31    Subdivision 1. Definitions. For purposes of this section, the following terms have
124.32the meanings given:
124.33(1) "architectural paint" means interior and exterior architectural coatings sold in
124.34containers of five gallons or less. Architectural paint does not include industrial coatings,
124.35original equipment coatings, or specialty coatings;
125.1(2) "brand" means a name, symbol, word, or mark that identifies architectural paint,
125.2rather than its components, and attributes the paint to the owner or licensee of the brand as
125.3the producer;
125.4(3) "discarded paint" means architectural paint that is no longer used for its
125.5manufactured purpose;
125.6(4) "producer" means a person that:
125.7(i) has legal ownership of the brand, brand name, or cobrand of architectural paint
125.8sold in the state;
125.9(ii) imports architectural paint branded by a producer that meets subclause (i) when
125.10the producer has no physical presence in the United States;
125.11(iii) if subclauses (i) and (ii) do not apply, makes unbranded architectural paint
125.12that is sold in the state; or
125.13(iv) sells architectural paint at wholesale or retail, does not have legal ownership of
125.14the brand, and elects to fulfill the responsibilities of the producer for the architectural paint
125.15by certifying that election in writing to the commissioner;
125.16(5) "recycling" means the process of collecting and preparing recyclable materials and
125.17reusing the materials in their original form or using them in manufacturing processes that
125.18do not cause the destruction of recyclable materials in a manner that precludes further use;
125.19(6) "retailer" means any person who offers architectural paint for sale at retail in
125.20the state;
125.21(7) "reuse" means donating or selling collected architectural paint back into the
125.22market for its original intended use, when the architectural paint retains its original
125.23purpose and performance characteristics;
125.24(8) "sale" or "sell" means transfer of title of architectural paint for consideration,
125.25including a remote sale conducted through a sales outlet, catalog, Web site, or similar
125.26electronic means. Sale or sell includes a lease through which architectural paint is
125.27provided to a consumer by a producer, wholesaler, or retailer;
125.28(9) "stewardship assessment" means the amount added to the purchase price of
125.29architectural paint sold in the state that is necessary to cover the cost of collecting,
125.30transporting, and processing postconsumer architectural paint by the producer or
125.31stewardship organization pursuant to a product stewardship program;
125.32(10) "stewardship organization" means an organization appointed by one or more
125.33producers to act as an agent on behalf of the producer to design, submit, and administer a
125.34product stewardship program under this section; and
125.35(11) "stewardship plan" means a detailed plan describing the manner in which a
125.36product stewardship program under subdivision 2 will be implemented.
126.1    Subd. 2. Product stewardship program. For architectural paint sold in the state,
126.2producers must, individually or through a stewardship organization, implement and
126.3finance a statewide product stewardship program that manages the architectural paint by
126.4reducing the paint's waste generation, promoting its reuse and recycling, and providing for
126.5negotiation and execution of agreements to collect, transport, and process the architectural
126.6paint for end-of-life recycling and reuse.
126.7    Subd. 3. Requirement for sale. (a) On and after July 1, 2014, or three months after
126.8program plan approval, whichever is sooner, no producer, wholesaler, or retailer may sell
126.9or offer for sale in the state architectural paint unless the paint's producer participates in an
126.10approved stewardship plan, either individually or through a stewardship organization.
126.11(b) Each producer must operate a product stewardship program approved by the
126.12agency or enter into an agreement with a stewardship organization to operate, on the
126.13producer's behalf, a product stewardship program approved by the agency.
126.14    Subd. 4. Requirement to submit plan. (a) On or before March 1, 2014, and before
126.15offering architectural paint for sale in the state, a producer must submit a stewardship
126.16plan to the agency and receive approval of the plan or must submit documentation to the
126.17agency that demonstrates the producer has entered into an agreement with a stewardship
126.18organization to be an active participant in an approved product stewardship program as
126.19described in subdivision 2. A stewardship plan must include all elements required under
126.20subdivision 5.
126.21(b) An amendment to the plan, if determined necessary by the commissioner, must
126.22be submitted every five years.
126.23(c) It is the responsibility of the entities responsible for each stewardship plan to
126.24notify the agency within 30 days of any significant changes or modifications to the plan or
126.25its implementation. Within 30 days of the notification, a written plan revision must be
126.26submitted to the agency for review and approval.
126.27    Subd. 5. Stewardship plan content. A stewardship plan must contain:
126.28(1) certification that the product stewardship program will accept all discarded
126.29paint regardless of which producer produced the architectural paint and its individual
126.30components;
126.31(2) contact information for the individual and the entity submitting the plan, a list of
126.32all producers participating in the product stewardship program, and the brands covered by
126.33the product stewardship program;
126.34(3) a description of the methods by which the discarded paint will be collected in all
126.35areas in the state without relying on end-of-life fees, including an explanation of how the
126.36collection system will be convenient and adequate to serve the needs of small businesses
127.1and residents in both urban and rural areas on an ongoing basis and a discussion of how
127.2the existing household hazardous waste infrastructure will be considered when selecting
127.3collection sites;
127.4(4) a description of how the adequacy of the collection program will be monitored
127.5and maintained;
127.6(5) the names and locations of collectors, transporters, and recyclers that will
127.7manage discarded paint;
127.8(6) a description of how the discarded paint and the paint's components will be
127.9safely and securely transported, tracked, and handled from collection through final
127.10recycling and processing;
127.11(7) a description of the method that will be used to reuse, deconstruct, or recycle
127.12the discarded paint to ensure that the paint's components, to the extent feasible, are
127.13transformed or remanufactured into finished products for use;
127.14(8) a description of the promotion and outreach activities that will be used to
127.15encourage participation in the collection and recycling programs and how the activities'
127.16effectiveness will be evaluated and the program modified, if necessary;
127.17(9) the proposed stewardship assessment. The producer or stewardship organization
127.18shall propose a uniform stewardship assessment for any architectural paint sold in the
127.19state. The proposed stewardship assessment shall be reviewed by an independent auditor
127.20to ensure that the assessment does not exceed the costs of the product stewardship program
127.21and the independent auditor shall recommend an amount for the stewardship assessment.
127.22The agency must approve the stewardship assessment;
127.23(10) evidence of adequate insurance and financial assurance that may be required for
127.24collection, handling, and disposal operations;
127.25(11) five-year performance goals, including an estimate of the percentage of
127.26discarded paint that will be collected, reused, and recycled during each of the first five
127.27years of the stewardship plan. The performance goals must include a specific goal for the
127.28amount of discarded paint that will be collected and recycled and reused during each year
127.29of the plan. The performance goals must be based on:
127.30(i) the most recent collection data available for the state;
127.31(ii) the estimated amount of architectural paint disposed of annually;
127.32(iii) the weight of the architectural paint that is expected to be available for collection
127.33annually; and
127.34(iv) actual collection data from other existing stewardship programs.
127.35The stewardship plan must state the methodology used to determine these goals; and
128.1(12) a discussion of the status of end markets for collected architectural paint and
128.2what, if any, additional end markets are needed to improve the functioning of the program.
128.3    Subd. 6. Consultation required. Each stewardship organization or individual
128.4producer submitting a stewardship plan must consult with stakeholders including
128.5retailers, contractors, collectors, recyclers, local government, and customers during the
128.6development of the plan.
128.7    Subd. 7. Agency review and approval. (a) Within 90 days after receipt of a proposed
128.8stewardship plan, the agency shall determine whether the plan complies with subdivision
128.94. If the agency approves a plan, the agency shall notify the applicant of the plan approval
128.10in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of
128.11the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must
128.12submit a revised plan to the agency within 60 days after receiving notice of rejection.
128.13(b) Any proposed changes to a stewardship plan must be approved by the agency
128.14in writing.
128.15    Subd. 8. Plan availability. All draft and approved stewardship plans shall be
128.16placed on the agency's Web site for at least 30 days and made available at the agency's
128.17headquarters for public review and comment.
128.18    Subd. 9. Conduct authorized. A producer or stewardship organization that
128.19organizes collection, transport, and processing of architectural paint under this section
128.20is immune from liability for the conduct under state laws relating to antitrust, restraint
128.21of trade, unfair trade practices, and other regulation of trade or commerce only to the
128.22extent that the conduct is necessary to plan and implement the producer's or organization's
128.23chosen organized collection or recycling system.
128.24    Subd. 10. Responsibility of producers. (a) On and after the date of implementation
128.25of a product stewardship program according to this section, a producer of architectural
128.26paint must add the stewardship assessment, as established under subdivision 5, clause (9),
128.27to the cost of architectural paint sold to retailers and distributors in the state by the producer.
128.28(b) Producers of architectural paint or the stewardship organization shall provide
128.29consumers with educational materials regarding the stewardship assessment and product
128.30stewardship program. The materials must include, but are not limited to, information
128.31regarding available end-of-life management options for architectural paint offered through
128.32the product stewardship program and information that notifies consumers that a charge
128.33for the operation of the product stewardship program is included in the purchase price of
128.34architectural paint sold in the state.
129.1    Subd. 11. Responsibility of retailers. (a) On and after July 1, 2014, or three months
129.2after program plan approval, whichever is sooner, no architectural paint may be sold in the
129.3state unless the paint's producer is participating in an approved stewardship plan.
129.4(b) On and after the implementation date of a product stewardship program
129.5according to this section, each retailer or distributor, as applicable, must ensure that the
129.6full amount of the stewardship assessment added to the cost of paint by producers under
129.7subdivision 10 is included in the purchase price of all architectural paint sold in the state.
129.8(c) Any retailer may participate, on a voluntary basis, as a designated collection
129.9point pursuant to a product stewardship program under this section and in accordance
129.10with applicable law.
129.11(d) No retailer or distributor shall be found to be in violation of this subdivision if,
129.12on the date the architectural paint was ordered from the producer or its agent, the producer
129.13was listed as compliant on the agency's Web site according to subdivision 14.
129.14    Subd. 12. Stewardship reports. Beginning October 1, 2015, producers of
129.15architectural paint sold in the state must individually or through a stewardship organization
129.16submit an annual report to the agency describing the product stewardship program. At a
129.17minimum, the report must contain:
129.18(1) a description of the methods used to collect, transport, and process architectural
129.19paint in all regions of the state;
129.20(2) the weight of all architectural paint collected in all regions of the state and a
129.21comparison to the performance goals and recycling rates established in the stewardship
129.22plan;
129.23(3) the amount of unwanted architectural paint collected in the state by method of
129.24disposition, including reuse, recycling, and other methods of processing;
129.25(4) samples of educational materials provided to consumers and an evaluation of the
129.26effectiveness of the materials and the methods used to disseminate the materials; and
129.27(5) an independent financial audit.
129.28    Subd. 13. Sales information. Sales information provided to the commissioner
129.29under this section is classified as private or nonpublic data, as specified in section
129.30115A.06, subdivision 13.
129.31    Subd. 14. Agency responsibilities. The agency shall provide, on its Web site, a
129.32list of all compliant producers and brands participating in stewardship plans that the
129.33agency has approved and a list of all producers and brands the agency has identified as
129.34noncompliant with this section.
129.35    Subd. 15. Local government responsibilities. (a) A city, county, or other public
129.36agency may choose to participate voluntarily in a product stewardship program.
130.1(b) Cities, counties, and other public agencies are encouraged to work with producers
130.2and stewardship organizations to assist in meeting product stewardship program reuse and
130.3recycling obligations, by providing education and outreach or using other strategies.
130.4(c) A city, county, or other public agency that participates in a product stewardship
130.5program must report for the first year of the program to the agency using the reporting
130.6form provided by the agency on the cost savings as a result of participation and describe
130.7how the savings were used.
130.8    Subd. 16. Administrative fee. (a) The stewardship organization or individual
130.9producer submitting a stewardship plan shall pay an annual administrative fee to the
130.10commissioner. The agency may establish a variable fee based on relevant factors,
130.11including, but not limited to, the portion of architectural paint sold in the state by members
130.12of the organization compared to the total amount of architectural paint sold in the state by
130.13all organizations submitting a stewardship plan.
130.14    (b) Prior to July 1, 2014, and before July 1 annually thereafter, the agency shall
130.15identify the costs it incurs under this section. The agency shall set the fee at an amount
130.16that, when paid by every stewardship organization or individual producer that submits a
130.17stewardship plan, is adequate to reimburse the agency's full costs of administering this
130.18section. The total amount of annual fees collected under this subdivision must not exceed
130.19the amount necessary to reimburse costs incurred by the agency to administer this section.
130.20    (c) A stewardship organization or individual producer subject to this subdivision
130.21must pay the agency's administrative fee under paragraph (a) on or before July 1, 2014 and
130.22annually thereafter. Each year after the initial payment, the annual administrative fee may
130.23not exceed five percent of the aggregate stewardship assessment added to the cost of all
130.24architectural paint sold by producers in the state for the preceding calendar year.
130.25    (d) All fees received under this section shall be deposited to the state treasury and
130.26credited to a product stewardship account in the Special Revenue Fund. Money in the
130.27account is appropriated to the commissioner for the purpose of reimbursing the agency's
130.28costs incurred to administer this section.

130.29    Sec. 90. [115A.142] PRIMARY BATTERIES; PRODUCT STEWARDSHIP
130.30PROGRAM; STEWARDSHIP PLAN.
130.31    Subdivision 1. Definitions. For purposes of this section, the following terms have
130.32the meaning given:
130.33(1) "brand" means a name, symbol, word, or mark that identifies a primary battery,
130.34rather than its components, and attributes the battery to the owner or licensee of the brand
130.35as the producer;
131.1(2) "discarded battery" means a primary battery that is no longer used for its
131.2manufactured purpose;
131.3    (3) "primary battery" means a battery weighing two kilograms or less that is not
131.4designed to be electrically recharged, including, but not limited to, alkaline manganese,
131.5carbon zinc, lithium, silver oxide, and zinc air batteries. Nonremovable batteries and
131.6medical devices as defined in the federal Food, Drug, and Cosmetic Act, United States
131.7Code, title 21, section 321, paragraph (h), as amended, are exempted from this definition.
131.8(4) "producer" means a person that:
131.9(i) has legal ownership of the brand, brand name, or cobrand of a primary battery
131.10sold in the state;
131.11(ii) imports a primary battery branded by a producer that meets subclause (i) when
131.12the producer has no physical presence in the United States;
131.13(iii) if subclauses (i) and (ii) do not apply, makes an unbranded primary battery
131.14that is sold in the state; or
131.15(iv) sells a primary battery at wholesale or retail, does not have legal ownership
131.16of the brand, and elects to fulfill the responsibilities of the producer for the battery by
131.17certifying that election in writing to the commissioner;
131.18(5) "recycling" means the process of collecting and preparing recyclable materials and
131.19reusing the materials in their original form or using them in manufacturing processes that
131.20do not cause the destruction of recyclable materials in a manner that precludes further use;
131.21(6) "retailer" means any person who offers primary batteries for sale at retail in
131.22the state;
131.23(7) "sale" or "sell" means transfer of title of a primary battery for consideration,
131.24including a remote sale conducted through a sales outlet, catalog, Web site, or similar
131.25electronic means. Sale or sell includes a lease through which a primary battery is provided
131.26to a consumer by a producer, wholesaler, or retailer;
131.27(8) "stewardship organization" means an organization appointed by one or more
131.28producers to act as an agent on behalf of the producer to design, submit, and administer a
131.29product stewardship program under this section; and
131.30(9) "stewardship plan" means a detailed plan describing the manner in which a
131.31product stewardship program under subdivision 2 will be implemented.
131.32    Subd. 2. Product stewardship program. For each primary battery sold in the
131.33state, producers must, individually or through a stewardship organization, implement
131.34and finance a statewide product stewardship program that manages primary batteries by
131.35reducing primary battery waste generation, promoting primary battery recycling, and
132.1providing for negotiation and execution of agreements to collect, transport, and process
132.2primary batteries for end-of-life recycling.
132.3    Subd. 3. Requirement for sale. (a) On and after December 1, 2014, or three months
132.4after program plan approval, whichever is sooner, no producer, wholesaler, or retailer may
132.5sell or offer for sale in the state a primary battery unless the battery's producer participates
132.6in an approved stewardship plan, either individually or through a stewardship organization.
132.7(b) Each producer must operate a product stewardship program approved by the
132.8agency or enter into an agreement with a stewardship organization to operate, on the
132.9producer's behalf, a product stewardship program approved by the agency.
132.10    Subd. 4. Requirement to submit plan. (a) On or before August 1, 2014, and before
132.11offering a primary battery for sale in the state, a producer must submit a stewardship
132.12plan to the agency and receive approval of the plan or must submit documentation to the
132.13agency that demonstrates the producer has entered into an agreement with a stewardship
132.14organization to be an active participant in an approved product stewardship program as
132.15described in subdivision 2. A stewardship plan must include all elements required under
132.16subdivision 5.
132.17(b) An amendment to the plan, if determined necessary by the commissioner, must
132.18be submitted every five years.
132.19(c) It is the responsibility of the entities responsible for each stewardship plan to
132.20notify the agency within 30 days of any significant changes or modifications to the plan or
132.21its implementation. Within 30 days of the notification, a written plan revision must be
132.22submitted to the agency for review and approval.
132.23    Subd. 5. Stewardship plan content. A stewardship plan must contain:
132.24(1) certification that the product stewardship program will accept discarded primary
132.25batteries regardless of which producer produced the batteries and their individual
132.26components;
132.27(2) contact information for the individual and the entity submitting the plan, a list of
132.28all producers participating in the product stewardship program, and the brands covered by
132.29the product stewardship program;
132.30(3) a description of the methods by which the discarded primary batteries will
132.31be collected in all areas in the state without relying on end-of-life fees, including an
132.32explanation of how the collection system will be convenient and adequate to serve the
132.33needs of small businesses and residents in both urban and rural areas on an ongoing basis;
132.34(4) a description of how the adequacy of the collection program will be monitored
132.35and maintained;
133.1(5) the names and locations of collectors, transporters, and recyclers that will
133.2manage discarded batteries;
133.3(6) a description of how the discarded primary batteries and the batteries'
133.4components will be safely and securely transported, tracked, and handled from collection
133.5through final recycling and processing;
133.6(7) a description of the method that will be used to recycle the discarded primary
133.7batteries to ensure that the batteries' components, to the extent feasible, are transformed or
133.8remanufactured into finished batteries for use;
133.9(8) a description of the promotion and outreach activities that will be used to
133.10encourage participation in the collection and recycling programs and how the activities'
133.11effectiveness will be evaluated and the program modified, if necessary;
133.12(9) evidence of adequate insurance and financial assurance that may be required for
133.13collection, handling, and disposal operations;
133.14(10) five-year performance goals, including an estimate of the percentage of
133.15discarded primary batteries that will be collected, reused, and recycled during each of the
133.16first five years of the stewardship plan. The performance goals must include a specific
133.17escalating goal for the amount of discarded primary batteries that will be collected and
133.18recycled during each year of the plan. The performance goals must be based on:
133.19(i) the most recent collection data available for the state;
133.20(ii) the estimated amount of primary batteries disposed of annually;
133.21(iii) the weight of primary batteries that is expected to be available for collection
133.22annually;
133.23(iv) actual collection data from other existing stewardship programs; and
133.24    (v) the market share of the producers participating in the plan.
133.25The stewardship plan must state the methodology used to determine these goals; and
133.26(11) a discussion of the status of end markets for discarded batteries and what, if any,
133.27additional end markets are needed to improve the functioning of the program.
133.28    Subd. 6. Consultation required. Each stewardship organization or individual
133.29producer submitting a stewardship plan must consult with stakeholders including retailers,
133.30collectors, recyclers, local government, and customers during the development of the plan.
133.31    Subd. 7. Agency review and approval. (a) Within 90 days after receipt of a proposed
133.32stewardship plan, the agency shall determine whether the plan complies with subdivision
133.335. If the agency approves a plan, the agency shall notify the applicant of the plan approval
133.34in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of
133.35the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must
133.36submit a revised plan to the agency within 60 days after receiving notice of rejection.
134.1(b) Any proposed changes to a stewardship plan must be approved by the agency
134.2in writing.
134.3    Subd. 8. Plan availability. All draft and approved stewardship plans shall be
134.4placed on the agency's Web site for at least 30 days and made available at the agency's
134.5headquarters for public review and comment.
134.6    Subd. 9. Conduct authorized. A producer or stewardship organization that
134.7organizes collection, transport, and processing of primary batteries under this section
134.8is immune from liability for the conduct under state laws relating to antitrust, restraint
134.9of trade, unfair trade practices, and other regulation of trade or commerce only to the
134.10extent that the conduct is necessary to plan and implement the producer's or organization's
134.11chosen organized collection or recycling system.
134.12    Subd. 10. Responsibility of retailers. (a) On and after December 1, 2014, or three
134.13months after program plan approval, whichever is sooner, no primary battery may be sold
134.14in the state unless the battery's producer is participating in an approved stewardship plan.
134.15(b) Any retailer may participate, on a voluntary basis, as a designated collection
134.16point pursuant to a product stewardship program under this section and in accordance
134.17with applicable law.
134.18(c) No retailer or distributor shall be found to be in violation of this subdivision if,
134.19on the date the primary battery was ordered from the producer or its agent, the producer
134.20was listed as compliant on the agency's Web site according to subdivision 12.
134.21    Subd. 11. Stewardship reports. Beginning March 1, 2016, producers of primary
134.22batteries sold in the state must individually or through a stewardship organization
134.23submit an annual report to the agency describing the product stewardship program. At a
134.24minimum, the report must contain:
134.25(1) a description of the methods used to collect, transport, and process primary
134.26batteries in all regions of the state;
134.27(2) the weight of all primary batteries collected in all regions of the state and a
134.28comparison to the performance goals and recycling rates established in the stewardship
134.29plan;
134.30(3) the amount of discarded primary batteries collected in the state by method of
134.31disposition, including recycling, and other methods of processing;
134.32(4) samples of educational materials provided to consumers and an evaluation of the
134.33effectiveness of the materials and the methods used to disseminate the materials; and
134.34(5) an independent financial audit of the stewardship organization.
134.35    Subd. 12. Agency responsibilities. The agency shall provide, on its Web site, a
134.36list of all compliant producers and brands participating in stewardship plans that the
135.1agency has approved and a list of all producers and brands the agency has identified as
135.2noncompliant with this section.
135.3    Subd. 13. Sales information. Sales information provided to the commissioner
135.4under this section is classified as private or nonpublic data, as specified in section
135.5115A.06, subdivision 13.
135.6    Subd. 14. Local government responsibilities. (a) A city, county, or other public
135.7agency may choose to participate voluntarily in a product stewardship program.
135.8(b) Cities, counties, and other public agencies are encouraged to work with producers
135.9and stewardship organizations to assist in meeting product stewardship program recycling
135.10obligations, by providing education and outreach or using other strategies.
135.11(c) A city, county, or other public agency that participates in a product stewardship
135.12program must report for the first year of the program to the agency using the reporting
135.13form provided by the agency on the cost savings as a result of participation and describe
135.14how the savings were used.
135.15    Subd. 15. Administrative fee. (a) The stewardship organization or individual
135.16producer submitting a stewardship plan shall pay an annual administrative fee to the
135.17commissioner. The agency may establish a variable fee based on relevant factors,
135.18including, but not limited to, the portion of primary batteries sold in the state by members
135.19of the organization compared to the total amount of primary batteries sold in the state by
135.20all organizations submitting a stewardship plan.
135.21(b) Prior to July 1, 2015, and before July 1 annually thereafter, the agency shall
135.22identify the costs it incurs under this section. The agency shall set the fee at an amount
135.23that, when paid by every stewardship organization or individual producer that submits a
135.24stewardship plan, is adequate to reimburse the agency's full costs of administering this
135.25section. The total amount of annual fees collected under this subdivision must not exceed
135.26the amount necessary to reimburse costs incurred by the agency to administer this section.
135.27(c) A stewardship organization or individual producer subject to this subdivision
135.28must pay the agency's administrative fee under paragraph (a) on or before July 1, 2015
135.29and annually thereafter.
135.30(d) All fees received under this section shall be deposited to the state treasury and
135.31credited to a product stewardship account in the Special Revenue Fund. Money in the
135.32account is appropriated to the commissioner for the purpose of reimbursing the agency's
135.33costs incurred to administer this section.
135.34    Subd. 16. Exemption; medical device. The requirements of this section do not
135.35apply to a medical device as defined in the Food, Drug, and Cosmetic Act, United States
135.36Code, title 21, section 321, paragraph (h).
136.1    Subd. 17. Private enforcement. (a) The operator of a statewide product stewardship
136.2program established under subdivision 2 that incurs costs exceeding $5,000 to collect,
136.3handle, recycle, or properly dispose of discarded primary batteries sold or offered for sale
136.4in Minnesota by a producer who does not implement its own program or participate in a
136.5program implemented by a stewardship organization, may bring a civil action or actions
136.6to recover costs and fees as specified in paragraph (b) from each nonimplementing or
136.7nonparticipating producer who can reasonably be identified from a brand or marking on a
136.8used consumer battery or from other information.
136.9    (b) An action under paragraph (a) may be brought against one or more primary
136.10battery producers, provided that no such action may be commenced:
136.11    (1) prior to 60 days after written notice of the operator's intention to file suit has been
136.12provided to the agency and the defendant or defendants; or
136.13    (2) if the agency has commenced enforcement actions under subdivision 10 and is
136.14diligently pursuing such actions.
136.15    (c) In any action under paragraph (b), the plaintiff operator may recover from
136.16a defendant nonimplementing or nonparticipating primary battery producer costs the
136.17plaintiff incurred to collect, handle, recycle, or properly dispose of primary batteries
136.18reasonably identified as having originated from the defendant, plus the plaintiff's attorney
136.19fees and litigation costs.

136.20    Sec. 91. [115A.1425] REPORT TO LEGISLATURE AND GOVERNOR.
136.21As part of the report required under section 115A.121, the commissioner of the
136.22Pollution Control Agency shall provide a report to the governor and the legislature on the
136.23implementation of sections 115A.141, 115A.1415, and 115A.142.

136.24    Sec. 92. Minnesota Statutes 2012, section 115B.20, subdivision 6, is amended to read:
136.25    Subd. 6. Report to legislature. Each year By January 31 of each odd-numbered
136.26year, the commissioner of agriculture and the agency shall submit to the senate Finance
136.27Committee, the house of representatives Ways and Means Committee, the Environment
136.28and Natural Resources Committees of the senate and house of representatives, the Finance
136.29Division of the senate Committee on Environment and Natural Resources, and the house
136.30of representatives Committee on Environment and Natural Resources Finance, and the
136.31Environmental Quality Board a report detailing the activities for which money has been
136.32spent pursuant to this section during the previous fiscal year.
136.33EFFECTIVE DATE.This section is effective July 1, 2013.

137.1    Sec. 93. Minnesota Statutes 2012, section 115B.28, subdivision 1, is amended to read:
137.2    Subdivision 1. Duties. In addition to performing duties specified in sections
137.3115B.25 to 115B.37 or in other law, and subject to the limitations on disclosure contained
137.4in section 115B.35, the agency shall:
137.5(1) adopt rules, including rules governing practice and procedure before the agency,
137.6the form and procedure for applications for compensation, and procedures for claims
137.7investigations;
137.8(2) publicize the availability of compensation and application procedures on a
137.9statewide basis with special emphasis on geographical areas surrounding sites identified
137.10by the agency as having releases from a facility where a harmful substance was placed or
137.11came to be located prior to July 1, 1983;
137.12(3) collect, analyze, and make available to the public, in consultation with the
137.13Department of Health, the Pollution Control Agency, the University of Minnesota Medical
137.14and Public Health Schools, and the medical community, data regarding injuries relating to
137.15exposure to harmful substances; and
137.16(4) prepare and transmit by December 31 of each year to the governor and the
137.17legislature an annual legislative report required under section 115B.20, subdivision
137.186, to include (i) a summary of agency activity under clause (3); (ii) data determined
137.19by the agency from actual cases, including but not limited to number of cases, actual
137.20compensation received by each claimant, types of cases, and types of injuries compensated,
137.21as they relate to types of harmful substances as well as length of exposure, but excluding
137.22identification of the claimants; (iii) all administrative costs associated with the business of
137.23the agency; and (iv) agency recommendations for legislative changes, further study, or any
137.24other recommendation aimed at improving the system of compensation.

137.25    Sec. 94. Minnesota Statutes 2012, section 115C.02, subdivision 4, is amended to read:
137.26    Subd. 4. Corrective action. "Corrective action" means an action taken to minimize,
137.27eliminate, or clean up a release to protect the public health and welfare or the environment.
137.28 Corrective action may include environmental covenants pursuant to chapter 114E, an
137.29affidavit required under section 116.48, subdivision 6, or similar notice of a release
137.30recorded with real property records.

137.31    Sec. 95. Minnesota Statutes 2012, section 115C.08, subdivision 4, is amended to read:
137.32    Subd. 4. Expenditures. (a) Money in the fund may only be spent:
137.33(1) to administer the petroleum tank release cleanup program established in this
137.34chapter;
138.1(2) for agency administrative costs under sections 116.46 to 116.50, sections
138.2115C.03 to 115C.06, and costs of corrective action taken by the agency under section
138.3115C.03 , including investigations;
138.4(3) for costs of recovering expenses of corrective actions under section 115C.04;
138.5(4) for training, certification, and rulemaking under sections 116.46 to 116.50;
138.6(5) for agency administrative costs of enforcing rules governing the construction,
138.7installation, operation, and closure of aboveground and underground petroleum storage
138.8tanks;
138.9(6) for reimbursement of the environmental response, compensation, and compliance
138.10account under subdivision 5 and section 115B.26, subdivision 4;
138.11(7) for administrative and staff costs as set by the board to administer the petroleum
138.12tank release program established in this chapter;
138.13(8) for corrective action performance audits under section 115C.093;
138.14(9) for contamination cleanup grants, as provided in paragraph (c);
138.15(10) to assess and remove abandoned underground storage tanks under section
138.16115C.094 and, if a release is discovered, to pay for the specific consultant and contractor
138.17services costs necessary to complete the tank removal project, including, but not limited
138.18to, excavation soil sampling, groundwater sampling, soil disposal, and completion of
138.19an excavation report; and
138.20(11) for property acquisition by the agency when the agency has determined that
138.21purchasing a property where a release has occurred is the most appropriate corrective
138.22action. The to acquire interests in real or personal property, including easements,
138.23environmental covenants under chapter 114E, and leases, that the agency determines are
138.24necessary for corrective actions or to ensure the protectiveness of corrective actions. A
138.25donation of an interest in real property to the agency is not effective until the agency
138.26executes a certificate of acceptance. The state is not liable under this chapter solely as a
138.27result of acquiring an interest in real property under this clause. Agency approval of an
138.28environmental covenant under chapter 114E is sufficient evidence of acceptance of an
138.29interest in real property when the agency is expressly identified as a holder in the covenant.
138.30 Acquisition of all properties real property under this clause, except environmental
138.31covenants under chapter 114E, is subject to approval by the board.
138.32(b) Except as provided in paragraph (c), money in the fund is appropriated to the
138.33board to make reimbursements or payments under this section.
138.34(c) In fiscal years 2010 and 2011, $3,700,000 is annually appropriated from the fund
138.35to the commissioner of employment and economic development for contamination cleanup
138.36grants under section 116J.554. Beginning in fiscal year 2012 and each year thereafter,
139.1$6,200,000 is annually appropriated from the fund to the commissioner of employment
139.2and economic development for contamination cleanup grants under section 116J.554. Of
139.3this amount, the commissioner may spend up to $225,000 annually for administration
139.4of the contamination cleanup grant program. The appropriation does not cancel and is
139.5available until expended. The appropriation shall not be withdrawn from the fund nor the
139.6fund balance reduced until the funds are requested by the commissioner of employment
139.7and economic development. The commissioner shall schedule requests for withdrawals
139.8from the fund to minimize the necessity to impose the fee authorized by subdivision 2.
139.9Unless otherwise provided, the appropriation in this paragraph may be used for:
139.10(1) project costs at a qualifying site if a portion of the cleanup costs are attributable
139.11to petroleum contamination or new and used tar and tar-like substances, including but not
139.12limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist
139.13primarily of hydrocarbons and are found in natural deposits in the earth or are distillates,
139.14fractions, or residues from the processing of petroleum crude or petroleum products as
139.15defined in section 296A.01; and
139.16(2) the costs of performing contamination investigation if there is a reasonable basis
139.17to suspect the contamination is attributable to petroleum or new and used tar and tar-like
139.18substances, including but not limited to bitumen and asphalt, but excluding bituminous or
139.19asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits
139.20in the earth or are distillates, fractions, or residues from the processing of petroleum crude
139.21or petroleum products as defined in section 296A.01.

139.22    Sec. 96. Minnesota Statutes 2012, section 115C.08, is amended by adding a subdivision
139.23to read:
139.24    Subd. 6. Disposition of property acquired for corrective action. (a) If the
139.25commissioner determines that real or personal property acquired by the agency for a
139.26corrective action is no longer needed for corrective action purposes, the commissioner may:
139.27(1) request the commissioner of administration to dispose of the property according
139.28to sections 16B.281 to 16B.287, subject to conditions the commissioner of the Pollution
139.29Control Agency determines necessary to protect the public health and welfare and the
139.30environment or to comply with federal law;
139.31(2) transfer the property to another state agency, a political subdivision, or a special
139.32purpose district as provided in paragraph (b); or
139.33(3) if required by federal law, take actions and dispose of the property according
139.34to federal law.
140.1(b) If the commissioner determines that real or personal property acquired by
140.2the agency for a corrective action must be operated, maintained, or monitored after
140.3completion of other phases of the corrective action, the commissioner may transfer
140.4ownership of the property to another state agency, a political subdivision, or a special
140.5purpose district that agrees to accept the property. A state agency, political subdivision,
140.6or special purpose district may accept and implement terms and conditions of a transfer
140.7under this paragraph. The commissioner may set terms and conditions for the transfer
140.8that the commissioner considers reasonable and necessary to ensure proper operation,
140.9maintenance, and monitoring of corrective actions; protect the public health and welfare
140.10and the environment; and comply with applicable federal and state laws and regulations.
140.11The state agency, political subdivision, or special purpose district to which the property is
140.12transferred is not liable under this chapter solely as a result of acquiring the property or
140.13acting in accordance with the terms and conditions of transfer.
140.14(c) The proceeds of a sale or other transfer of property under this subdivision
140.15by the commissioner or by the commissioner of administration shall be deposited in
140.16the petroleum tank fund or other appropriate fund. Any share of the proceeds that the
140.17agency is required by federal law or regulation to reimburse to the federal government is
140.18appropriated from the fund to the agency for the purpose. Section 16B.287, subdivision 1,
140.19does not apply to real property that is sold by the commissioner of administration and that
140.20was acquired under subdivision 4, clause (11).

140.21    Sec. 97. Minnesota Statutes 2012, section 115D.10, is amended to read:
140.22115D.10 TOXIC POLLUTION PREVENTION EVALUATION REPORT.
140.23The commissioner, in cooperation with the commission, shall report to
140.24the Environment and Natural Resources Committees of the senate and house of
140.25representatives, the Finance Division of the senate Committee on Environment and
140.26Natural Resources, and the house of representatives Committee on Environment and
140.27Natural Resources Finance on progress being made in achieving the objectives of sections
140.28115D.01 to 115D.12. The report must be submitted by February 1 of each even-numbered
140.29year done in conjunction with the report required under section 115A.121.

140.30    Sec. 98. Minnesota Statutes 2012, section 116.48, subdivision 6, is amended to read:
140.31    Subd. 6. Affidavit. (a) Before transferring ownership of property that the owner
140.32knows contains an underground or aboveground storage tank or contained an underground
140.33or aboveground storage tank that had a release for which no corrective action was taken or
140.34if required by the agency as a condition of a corrective action under chapter 115C, the
141.1owner shall record with the county recorder or registrar of titles of the county in which the
141.2property is located an affidavit containing:
141.3(1) a legal description of the property where the tank is located;
141.4(2) a description of the tank, of the location of the tank, and of any known release
141.5from the tank of a regulated substance to the full extent known or reasonably ascertainable;
141.6(3) a description of any restrictions currently in force on the use of the property
141.7resulting from any release; and
141.8(4) the name of the owner.
141.9(b) The county recorder shall record the affidavits in a manner that will insure
141.10their disclosure in the ordinary course of a title search of the subject property. Before
141.11transferring ownership of property that the owner knows contains an underground or
141.12aboveground storage tank, the owner shall deliver to the purchaser a copy of the affidavit
141.13and any additional information necessary to make the facts in the affidavit accurate as of
141.14the date of transfer of ownership.
141.15(c) Failure to record an affidavit as provided in this subdivision does not affect or
141.16prevent any transfer of ownership of the property.

141.17    Sec. 99. Minnesota Statutes 2012, section 116C.03, subdivision 2, is amended to read:
141.18    Subd. 2. Membership. The members of the board are the director of the Office of
141.19Strategic and Long-Range Planning commissioner of administration, the commissioner
141.20of commerce, the commissioner of the Pollution Control Agency, the commissioner
141.21of natural resources, the commissioner of agriculture, the commissioner of health,
141.22the commissioner of employment and economic development, the commissioner of
141.23transportation, the chair of the Board of Water and Soil Resources, and a representative of
141.24the governor's office designated by the governor. The governor shall appoint five members
141.25from the general public to the board, subject to the advice and consent of the senate.
141.26At least two of the five public members must have knowledge of and be conversant in
141.27water management issues in the state. Notwithstanding the provisions of section 15.06,
141.28subdivision 6
, members of the board may not delegate their powers and responsibilities as
141.29board members to any other person.

141.30    Sec. 100. Minnesota Statutes 2012, section 116C.03, subdivision 4, is amended to read:
141.31    Subd. 4. Support. Staff and consultant support for board activities shall be provided
141.32by the Office of Strategic and Long-Range Planning Pollution Control Agency. This
141.33support shall be provided based upon an annual budget and work program developed by
141.34the board and certified to the commissioner by the chair of the board. The board shall
142.1have the authority to request and require staff support from all other agencies of state
142.2government as needed for the execution of the responsibilities of the board.

142.3    Sec. 101. Minnesota Statutes 2012, section 116C.03, subdivision 5, is amended to read:
142.4    Subd. 5. Administration. The board shall contract with the Office of Strategic and
142.5Long-Range Planning Pollution Control Agency for administrative services necessary to
142.6the board's activities. The services shall include personnel, budget, payroll and contract
142.7administration.

142.8    Sec. 102. [116C.99] SILICA SAND MINING MODEL STANDARDS AND
142.9CRITERIA.
142.10    Subdivision 1. Definitions. The definitions in this subdivision apply to this section.
142.11(a) "Local unit of government" means a county, statutory or home rule charter city,
142.12or town.
142.13(b) "Mining" means excavating and mining silica sand by any process, including
142.14digging, excavating, mining, drilling, blasting, tunneling, dredging, stripping, or by shaft.
142.15(c) "Processing" means washing, cleaning, screening, crushing, filtering, sorting,
142.16processing, stockpiling, and storing silica sand, either at the mining site or at any other site.
142.17(d) "Silica sand" means well-rounded, sand-sized grains of quartz (silicon dioxide),
142.18with very little impurities in terms of other minerals. Specifically, the silica sand for the
142.19purposes of this section is commercially valuable for use in the hydraulic fracturing of
142.20shale to obtain oil and natural gas. Silica sand does not include common rock, stone,
142.21aggregate, gravel, sand with a low quartz level, or silica compounds recovered as a
142.22by-product of metallic mining.
142.23(e) "Silica sand project" means the excavation and mining and processing of silica
142.24sand; the washing, cleaning, screening, crushing, filtering, drying, sorting, stockpiling,
142.25and storing of silica sand, either at the mining site or at any other site; the hauling and
142.26transporting of silica sand; or a facility for transporting silica sand to destinations by rail,
142.27barge, truck, or other means of transportation.
142.28(f) "Temporary storage" means the storage of stock piles of silica sand that have
142.29been transported and await further transport.
142.30(g) "Transporting" means hauling and transporting silica sand, by any carrier:
142.31(1) from the mining site to a processing or transfer site; or
142.32(2) from a processing or storage site to a rail, barge, or transfer site for transporting
142.33to destinations.
143.1    Subd. 2. Standards and criteria. (a) By October 1, 2013, the Environmental
143.2Quality Board, in consultation with local units of government, shall develop model
143.3standards and criteria for mining, processing, and transporting silica sand. These standards
143.4and criteria may be used by local units of government in developing local ordinances.
143.5The standards and criteria must include:
143.6(1) recommendations for setbacks or buffers for mining operation and processing,
143.7including:
143.8(i) any residence or residential zoning district boundary;
143.9(ii) any property line or right-of-way line of any existing or proposed street or
143.10highway;
143.11(iii) ordinary high water levels of public waters;
143.12(iv) bluffs;
143.13(v) designated trout streams, Class 2A water as designated in the rules of the
143.14Pollution Control Agency, or any perennially flowing tributary of a designated trout
143.15stream or Class 2A water;
143.16(vi) calcareous fens;
143.17(vii) wellhead protection areas as defined in section 103I.005;
143.18(viii) critical natural habitat acquired by the commissioner of natural resources
143.19under section 84.944; and
143.20(ix) a natural resource easement paid wholly or in part by public funds;
143.21(2) standards for hours of operation;
143.22(3) groundwater and surface water quality and quantity monitoring and mitigation
143.23plan requirements, including:
143.24(i) applicable groundwater and surface water appropriation permit requirements;
143.25(ii) well sealing requirements;
143.26(iii) annual submission of monitoring well data; and
143.27(iv) storm water runoff rate limits not to exceed two-, ten-, and 100-year storm events;
143.28(4) air monitoring and data submission requirements;
143.29(5) dust control requirements;
143.30(6) noise testing and mitigation plan requirements;
143.31(7) blast monitoring plan requirements;
143.32(8) lighting requirements;
143.33(9) inspection requirements;
143.34(10) containment requirements for silica sand in temporary storage to protect air
143.35and water quality;
143.36(11) containment requirements for chemicals used in processing;
144.1(12) financial assurance requirements;
144.2(13) road and bridge impacts and requirements; and
144.3(14) reclamation plan requirements as required under the rules adopted by the
144.4commissioner of natural resources.
144.5    Subd. 3. Silica sand technical assistance team. By October 1, 2013, the
144.6Environmental Quality Board shall assemble a silica sand technical assistance team
144.7to provide local units of government, at their request, with assistance with ordinance
144.8development, zoning, environmental review and permitting, monitoring, or other issues
144.9arising from silica sand mining and processing operations. The technical assistance team
144.10shall be comprised of up to seven members, and shall be chosen from the following
144.11entities: the Department of Natural Resources, the Pollution Control Agency, the Board of
144.12Water and Soil Resources, the Department of Health, the Department of Transportation,
144.13the University of Minnesota, and the Minnesota State Colleges and Universities. A
144.14majority of the members must be from a state agency and have expertise in one or more of
144.15the following areas: silica sand mining, hydrology, air quality, water quality, land use, or
144.16other areas related to silica sand mining.
144.17    Subd. 4. Consideration of technical assistance team recommendations. (a) When
144.18the technical assistance team, at the request of the local unit of government, assembles
144.19findings or makes a recommendation related to a proposed silica sand project for the
144.20protection of human health and the environment, a local government unit must consider
144.21the findings or recommendations of the technical assistance team in its approval or denial
144.22of a silica sand project. If the local government unit does not agree with the technical
144.23assistance team's findings and recommendations, the detailed reasons for the disagreement
144.24must be part of the local government unit's record of decision.
144.25(b) Silica sand project proposers must cooperate in providing local government unit
144.26staff, and members of the technical assistance team with information regarding the project.
144.27(c) When a local unit of government requests assistance from the silica sand
144.28technical assistance team for environmental review or permitting of a silica sand project
144.29the local unit of government may assess the project proposer for reasonable costs of the
144.30assistance and use the funds received to reimburse the entity providing that assistance.
144.31EFFECTIVE DATE.This section is effective the day following final enactment.

144.32    Sec. 103. [116C.991] TECHNICAL ASSISTANCE, ORDINANCE, AND PERMIT
144.33LIBRARY.
144.34By October 1, 2013, the Environmental Quality Board, in consultation with local
144.35units of government, shall create and maintain a library on local government ordinances
145.1and local government permits that have been approved for regulation of silica sand
145.2projects for reference by local governments.

145.3    Sec. 104. Minnesota Statutes 2012, section 116D.04, is amended by adding a
145.4subdivision to read:
145.5    Subd. 16. Groundwater; environmental assessment worksheets. When an
145.6environmental assessment worksheet is required for a proposed action that has the
145.7potential to require a groundwater appropriation permit from the commissioner of natural
145.8resources, the board shall require that the environmental assessment worksheet include an
145.9assessment of the water resources available for appropriation.

145.10    Sec. 105. Minnesota Statutes 2012, section 168.1296, subdivision 1, is amended to read:
145.11    Subdivision 1. General requirements and procedures. (a) The commissioner shall
145.12issue critical habitat plates to an applicant who:
145.13(1) is a registered owner of a passenger automobile as defined in section 168.002,
145.14subdivision 24, or recreational vehicle as defined in section 168.002, subdivision 27;
145.15(2) pays a fee of $10 to cover the costs of handling and manufacturing the plates;
145.16(3) pays the registration tax required under section 168.013;
145.17(4) pays the fees required under this chapter;
145.18(5) contributes a minimum of $30 $40 annually to the Minnesota critical habitat
145.19private sector matching account established in section 84.943; and
145.20(6) complies with this chapter and rules governing registration of motor vehicles
145.21and licensing of drivers.
145.22(b) The critical habitat plate application must indicate that the annual contribution
145.23specified under paragraph (a), clause (5), is a minimum contribution to receive the plate
145.24and that the applicant may make an additional contribution to the account.
145.25(c) Owners of recreational vehicles under paragraph (a), clause (1), are eligible
145.26only for special critical habitat license plates for which the designs are selected under
145.27subdivision 2, on or after January 1, 2006.
145.28(d) Special critical habitat license plates, the designs for which are selected under
145.29subdivision 2, on or after January 1, 2006, may be personalized according to section
145.30168.12, subdivision 2a .

145.31    Sec. 106. Minnesota Statutes 2012, section 473.846, is amended to read:
145.32473.846 REPORTS REPORT TO LEGISLATURE.
146.1The agency shall submit to the senate and house of representatives committees
146.2having jurisdiction over environment and natural resources separate reports a report
146.3 describing the activities for which money for landfill abatement has been spent under
146.4sections section 473.844 and 473.845. The report for section 473.844 expenditures shall be
146.5included in the report required by section 115A.411, and shall include recommendations
146.6on the future management and use of the metropolitan landfill abatement account. By
146.7December 31 of each year, the commissioner shall submit the report for section 473.845
146.8 on contingency action trust fund activities.

146.9    Sec. 107. Laws 2012, chapter 249, section 11, is amended to read:
146.10    Sec. 11. COSTS OF SCHOOL TRUST LANDS DIRECTOR AND
146.11LEGISLATIVE PERMANENT SCHOOL FUND COMMISSION.
146.12(a) The costs of the school trust lands director, including the costs of hiring staff,
146.13and the Legislative Permanent School Fund Commission for fiscal years 2014 and 2015
146.14shall be from the state forest development account under Minnesota Statutes, section
146.1516A.125, and from the minerals management account under Minnesota Statutes, section
146.1693.2236 , as appropriated by the legislature.
146.17(b) The school trust lands director and the Legislative Permanent School Fund
146.18Commission shall submit to the 2014 legislature a proposal to fund the operational costs
146.19of the Legislative Permanent School Fund Commission and school trust lands director
146.20and staff with a cost certification method using revenues generated by the permanent
146.21school fund lands.
146.22EFFECTIVE DATE.This section is effective July 1, 2013.

146.23    Sec. 108. NORTH MISSISSIPPI REGIONAL PARK.
146.24(a) The boundaries of the North Mississippi Regional Park are extended to include
146.25the approximately 20.82 acres of land adjacent to the existing park known as Webber Park
146.26and that part of Shingle Creek that flows through Webber Park and continues through
146.27North Mississippi Regional Park into the Mississippi River.
146.28(b) Funds appropriated for North Mississippi Regional Park may be expended to
146.29provide for visitor amenities, including construction of a natural filtration swimming
146.30pool and a building for park users.
146.31EFFECTIVE DATE.This section is effective the day after the governing body of
146.32the Minneapolis Park and Recreation Board and its chief clerical officer timely complete
146.33their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

147.1    Sec. 109. WASTEWATER TREATMENT SYSTEMS; BENEFICIAL USE.
147.2The Pollution Control Agency shall apply the following criteria to wastewater
147.3treatment system projects:
147.4(1) 30 points shall be assigned if a project will result in an agency approved
147.5beneficial use of treated wastewater to reduce or replace an existing or proposed use of
147.6surface water or ground water, not including land discharge; and
147.7(2) 30 points shall be assigned if a project will result in the beneficial use of treated
147.8wastewater to reduce or replace an existing or proposed use of surface water or ground
147.9water, not including land discharge.
147.10EFFECTIVE DATE.This section is effective July 1, 2014.

147.11    Sec. 110. PERMIT CANCELLATION.
147.12Upon written request submitted by a permit holder to the commissioner of natural
147.13resources on or before June 1, 2015, the commissioner shall cancel any provision in a
147.14timber sale permit sold prior to September 1, 2012, that requires the security payment for
147.15or removal of all or part of the balsam fir when the permit contains at least 50 cords of
147.16balsam fir. The remaining provisions of the permit remain in effect. The permit holder
147.17may be required to fell or pile the balsam fir to meet management objectives.

147.18    Sec. 111. GROUNDWATER SUSTAINABILITY RECOMMENDATIONS.
147.19The commissioner of natural resources shall develop recommendations on
147.20additional tools needed to fully implement the groundwater sustainability requirements
147.21of Minnesota Statutes, section 103G.287, subdivisions 3 and 5. The recommendations
147.22shall be submitted to the chairs of the environment and natural resources policy and
147.23finance committees by January 15, 2014, and shall include draft legislative language to
147.24implement the recommendations.

147.25    Sec. 112. RULEMAKING; POSSESSION AND TRANSPORTATION OF
147.26WILDLIFE.
147.27The commissioner of natural resources may use the good cause exemption under
147.28Minnesota Statutes, section 14.388, subdivision 1, clause (3), to adopt rules to conform
147.29with the changes to Minnesota Statutes 2012, section 97A.401, subdivision 3 contained in
147.30this article, and Minnesota Statutes, section 14.386, does not apply except as provided
147.31under Minnesota Statutes, section 14.388.

148.1    Sec. 113. RULEMAKING; DISPLAY OF PADDLE BOARD LICENSE
148.2NUMBERS.
148.3(a) The commissioner of natural resources shall amend Minnesota Rules, parts
148.46110.0200, 6110.0300, and 6110.0400, to exempt paddle boards from the requirement to
148.5display license certificates and license numbers, in the same manner as other nonmotorized
148.6watercraft such as canoes and kayaks.
148.7(b) The commissioner may use the good cause exemption under Minnesota Statutes,
148.8section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
148.9Statutes, section 14.386, does not apply except as provided under Minnesota Statutes,
148.10section 14.388.

148.11    Sec. 114. RULEMAKING; INDUSTRIAL MINERALS AND NONFERROUS
148.12MINERAL LEASES.
148.13The commissioner of natural resources may use the good cause exemption under
148.14Minnesota Statutes, section 14.388, subdivision 1, clause (3), to amend Minnesota Rules,
148.15parts 6125.0100 to 6125.0700 and 6125.8000 to 6125.8700, to conform with the changes
148.16to Minnesota Statutes, section 93.25, subdivision 2 contained in this article. Minnesota
148.17Statutes, section 14.386, does not apply except as provided under Minnesota Statutes,
148.18section 14.388.

148.19    Sec. 115. RULEMAKING; PERMIT TO MINE.
148.20The commissioner of natural resources may use the good cause exemption under
148.21Minnesota Statutes, section 14.388, subdivision 1, clause (3), to amend Minnesota Rules,
148.22chapter 6130, to conform with the changes to Minnesota Statutes, section 93.46 contained
148.23in this article. Minnesota Statutes, section 14.386, does not apply except as provided
148.24under Minnesota Statutes, section 14.388.

148.25    Sec. 116. RULEMAKING; SILICA SAND.
148.26(a) The commissioner of the Pollution Control Agency shall adopt rules pertaining
148.27to the control of particulate emissions from silica sand mines. The commissioner shall
148.28consider and incorporate, as appropriate to the conditions of this state, Wisconsin
148.29Administrative Code NR 415, in effect as of January 1, 2012, pertaining to industrial
148.30sand mines.
148.31(b) The commissioner of natural resources shall adopt rules pertaining to the
148.32reclamation of silica sand mines. The commissioner shall consider and incorporate, as
149.1appropriate to the conditions of this state, Wisconsin Administrative Code NR 135, in
149.2effect as of January 1, 2012, pertaining to reclamation of industrial sand mines.
149.3(c) By January 1, 2014, the Department of Health shall adopt an air quality health
149.4advisory for silica sand.

149.5    Sec. 117. RULEMAKING; FUGITIVE EMISSIONS.
149.6(a) The commissioner of the Pollution Control Agency shall amend Minnesota
149.7Rules, part 7005.0100, subpart 35a, to read:
149.8""Potential emissions" or "potential to emit" means the maximum capacity while
149.9operating at the maximum hours of operation of an emissions unit, emission facility, or
149.10stationary source to emit a pollutant under its physical and operational design. Any physical
149.11or operational limitation on the capacity of the stationary source to emit a pollutant,
149.12including air pollution control equipment and restriction on hours of operation or on the
149.13type or amount of material combusted, stored, or processed, must be treated as part of its
149.14design if the limitation or the effect it would have on emissions is federally enforceable.
149.15Secondary emissions must not be counted in determining the potential to emit of
149.16an emissions unit, emission facility, or stationary source. Fugitive emissions shall not be
149.17counted when determining potential to emit, unless required under Minnesota Rules, part
149.187007.0200, subpart 2, item B, or applicable federal regulation."
149.19(b) The commissioner may use the good cause exemption under Minnesota Statutes,
149.20section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
149.21Statutes, section 14.386, does not apply, except as provided under Minnesota Statutes,
149.22section 14.388.

149.23    Sec. 118. REPEALER.
149.24Minnesota Statutes 2012, sections 90.163; 90.173; 90.41, subdivision 2; and
149.25103G.265, subdivision 2a, and Minnesota Rules, parts 7021.0010, subparts 1, 2, 4, and
149.265; 7021.0020; 7021.0030; 7021.0040; 7021.0050, subpart 5; 9210.0300; 9210.0310;
149.279210.0320; 9210.0330; 9210.0340; 9210.0350; 9210.0360; 9210.0370; 9210.0380; and
149.289220.0530, subpart 6, are repealed.

149.29ARTICLE 5
149.30SANITARY DISTRICTS

149.31    Section 1. Minnesota Statutes 2012, section 275.066, is amended to read:
149.32275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
150.1    For the purposes of property taxation and property tax state aids, the term "special
150.2taxing districts" includes the following entities:
150.3    (1) watershed districts under chapter 103D;
150.4    (2) sanitary districts under sections 115.18 to 115.37 442A.01 to 442A.29;
150.5    (3) regional sanitary sewer districts under sections 115.61 to 115.67;
150.6    (4) regional public library districts under section 134.201;
150.7    (5) park districts under chapter 398;
150.8    (6) regional railroad authorities under chapter 398A;
150.9    (7) hospital districts under sections 447.31 to 447.38;
150.10    (8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
150.11    (9) Duluth Transit Authority under sections 458A.21 to 458A.37;
150.12    (10) regional development commissions under sections 462.381 to 462.398;
150.13    (11) housing and redevelopment authorities under sections 469.001 to 469.047;
150.14    (12) port authorities under sections 469.048 to 469.068;
150.15    (13) economic development authorities under sections 469.090 to 469.1081;
150.16    (14) Metropolitan Council under sections 473.123 to 473.549;
150.17    (15) Metropolitan Airports Commission under sections 473.601 to 473.680;
150.18    (16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
150.19    (17) Morrison County Rural Development Financing Authority under Laws 1982,
150.20chapter 437, section 1;
150.21    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
150.22    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211,
150.23sections 1 to 6;
150.24    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article
150.255, section 39;
150.26    (21) Middle Mississippi River Watershed Management Organization under sections
150.27103B.211 and 103B.241;
150.28    (22) emergency medical services special taxing districts under section 144F.01;
150.29    (23) a county levying under the authority of section 103B.241, 103B.245, or
150.30103B.251 ;
150.31    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
150.32under Laws 2003, First Special Session chapter 21, article 4, section 12;
150.33    (25) an airport authority created under section 360.0426; and
150.34    (26) any other political subdivision of the state of Minnesota, excluding counties,
150.35school districts, cities, and towns, that has the power to adopt and certify a property tax
150.36levy to the county auditor, as determined by the commissioner of revenue.

151.1    Sec. 2. [442A.01] DEFINITIONS.
151.2    Subdivision 1. Applicability. For the purposes of this chapter, the terms defined
151.3in this section have the meanings given.
151.4    Subd. 2. Chief administrative law judge. "Chief administrative law judge" means
151.5the chief administrative law judge of the Office of Administrative Hearings or the delegate
151.6of the chief administrative law judge under section 14.48.
151.7    Subd. 3. District. "District" means a sanitary district created under this chapter or
151.8under Minnesota Statutes 2012, sections 115.18 to 115.37.
151.9    Subd. 4. Municipality. "Municipality" means a city, however organized.
151.10    Subd. 5. Property owner. "Property owner" means the fee owner of land, or the
151.11beneficial owner of land whose interest is primarily one of possession and enjoyment.
151.12Property owner includes, but is not limited to, vendees under a contract for deed and
151.13mortgagors. Any reference to a percentage of property owners means in number.
151.14    Subd. 6. Related governing body. "Related governing body" means the governing
151.15body of a related governmental subdivision and, in the case of an organized town, means
151.16the town board.
151.17    Subd. 7. Related governmental subdivision. "Related governmental subdivision"
151.18means a municipality or organized town wherein there is a territorial unit of a district or, in
151.19the case of an unorganized area, the county.
151.20    Subd. 8. Territorial unit. "Territorial unit" means all that part of a district situated
151.21within a single municipality, within a single organized town outside of a municipality, or,
151.22in the case of an unorganized area, within a single county.

151.23    Sec. 3. [442A.015] APPLICABILITY.
151.24All new sanitary district formations proposed and all sanitary districts previously
151.25formed under Minnesota Statutes 2012, sections 115.18 to 115.37, must comply with this
151.26chapter, including annexations to, detachments from, and resolutions of sanitary districts
151.27previously formed under Minnesota Statutes 2012, sections 115.18 to 115.37.

151.28    Sec. 4. [442A.02] SANITARY DISTRICTS; PROCEDURES AND AUTHORITY.
151.29    Subdivision 1. Duty of chief administrative law judge. The chief administrative
151.30law judge shall conduct proceedings, make determinations, and issue orders for the
151.31creation of a sanitary district formed under this chapter or the annexation, detachment,
151.32or dissolution of a sanitary district previously formed under Minnesota Statutes 2012,
151.33sections 115.18 to 115.37.
152.1    Subd. 2. Consolidation of proceedings. The chief administrative law judge may
152.2order the consolidation of separate proceedings in the interest of economy and expedience.
152.3    Subd. 3. Contracts, consultants. The chief administrative law judge may contract
152.4with regional, state, county, or local planning commissions and hire expert consultants to
152.5provide specialized information and assistance.
152.6    Subd. 4. Powers of conductor of proceedings. Any person conducting a
152.7proceeding under this chapter may administer oaths and affirmations; receive testimony
152.8of witnesses, and the production of papers, books, and documents; examine witnesses;
152.9and receive and report evidence. Upon the written request of a presiding administrative
152.10law judge or a party, the chief administrative law judge may issue a subpoena for the
152.11attendance of a witness or the production of books, papers, records, or other documents
152.12material to any proceeding under this chapter. The subpoena is enforceable through the
152.13district court in the district in which the subpoena is issued.
152.14    Subd. 5. Rulemaking authority. The chief administrative law judge may adopt
152.15rules that are reasonably necessary to carry out the duties and powers imposed upon the
152.16chief administrative law judge under this chapter. The chief administrative law judge may
152.17initially adopt rules according to section 14.386. Notwithstanding section 16A.1283, the
152.18chief administrative law judge may adopt rules establishing fees.
152.19    Subd. 6. Schedule of filing fees. The chief administrative law judge may prescribe
152.20by rule a schedule of filing fees for any petitions filed under this chapter.
152.21    Subd. 7. Request for hearing transcripts; costs. Any party may request the chief
152.22administrative law judge to cause a transcript of the hearing to be made. Any party
152.23requesting a copy of the transcript is responsible for its costs.
152.24    Subd. 8. Compelled meetings; report. (a) In any proceeding under this chapter,
152.25the chief administrative law judge or conductor of the proceeding may at any time in the
152.26process require representatives from any petitioner, property owner, or involved city, town,
152.27county, political subdivision, or other governmental entity to meet together to discuss
152.28resolution of issues raised by the petition or order that confers jurisdiction on the chief
152.29administrative law judge and other issues of mutual concern. The chief administrative
152.30law judge or conductor of the proceeding may determine which entities are required
152.31to participate in these discussions. The chief administrative law judge or conductor of
152.32the proceeding may require that the parties meet at least three times during a 60-day
152.33period. The parties shall designate a person to report to the chief administrative law
152.34judge or conductor of the proceeding on the results of the meetings immediately after the
152.35last meeting. The parties may be granted additional time at the discretion of the chief
152.36administrative law judge or conductor of the proceedings.
153.1(b) Any proposed resolution or settlement of contested issues that results in a
153.2sanitary district formation, annexation, detachment, or dissolution; places conditions on
153.3any future sanitary district formation, annexation, detachment, or dissolution; or results in
153.4the withdrawal of an objection to a pending proceeding or the withdrawal of a pending
153.5proceeding must be filed with the chief administrative law judge and is subject to the
153.6applicable procedures and statutory criteria of this chapter.
153.7    Subd. 9. Permanent official record. The chief administrative law judge shall
153.8provide information about sanitary district creations, annexations, detachments, and
153.9dissolutions to the Minnesota Pollution Control Agency. The Minnesota Pollution Control
153.10Agency is responsible for maintaining the official record, including all documentation
153.11related to the processes.
153.12    Subd. 10. Shared program costs and fee revenue. The chief administrative
153.13law judge and the Minnesota Pollution Control Agency shall agree on an amount to be
153.14transferred from the Minnesota Pollution Control Agency to the chief administrative law
153.15judge to pay for administration of this chapter, including publication and notification costs.
153.16Sanitary district fees collected by the chief administrative law judge shall be deposited in
153.17the environmental fund.
153.18EFFECTIVE DATE.Subdivision 5 is effective the day following final enactment.

153.19    Sec. 5. [442A.03] FILING OF MAPS IN SANITARY DISTRICT PROCEEDINGS.
153.20Any party initiating a sanitary district proceeding that includes platted land shall file
153.21with the chief administrative law judge maps which are necessary to support and identify
153.22the land description. The maps shall include copies of plats.

153.23    Sec. 6. [442A.04] SANITARY DISTRICT CREATION.
153.24    Subdivision 1. Sanitary district creation. (a) A sanitary district may be created
153.25under this chapter for any territory embracing an area or a group of two or more adjacent
153.26areas, whether contiguous or separate, but not situated entirely within the limits of a
153.27single municipality. The proposed sanitary district must promote the public health and
153.28welfare by providing an adequate and efficient system and means of collecting, conveying,
153.29pumping, treating, and disposing of domestic sewage and garbage and industrial wastes
153.30within the district. When the chief administrative law judge or the Minnesota Pollution
153.31Control Agency finds that there is need throughout the territory for the accomplishment
153.32of these purposes; that these purposes can be effectively accomplished on an equitable
153.33basis by a district if created; and that the creation and maintenance of a district will be
153.34administratively feasible and in furtherance of the public health, safety, and welfare, the
154.1chief administrative law judge shall make an order creating the sanitary district. A sanitary
154.2district is administratively feasible under this section if the district has the financial and
154.3managerial resources needed to deliver adequate and efficient sanitary sewer services
154.4within the proposed district.
154.5(b) Notwithstanding paragraph (a), no district shall be created within 25 miles of the
154.6boundary of any city of the first class without the approval of the governing body thereof
154.7and the approval of the governing body of each and every municipality in the proposed
154.8district by resolution filed with the chief administrative law judge.
154.9(c) If the chief administrative law judge and the Minnesota Pollution Control Agency
154.10disagree on the need to create a sanitary district, they must determine whether not allowing
154.11the sanitary district formation will have a detrimental effect on the environment. If it is
154.12determined that the sanitary district formation will prevent environmental harm, the sanitary
154.13district creation or connection to an existing wastewater treatment system must occur.
154.14    Subd. 2. Proceeding to create sanitary district. (a) A proceeding for the creation
154.15of a district may be initiated by a petition to the chief administrative law judge containing
154.16the following:
154.17(1) a request for creation of the proposed district;
154.18(2) the name proposed for the district, to include the words "sanitary district";
154.19(3) a legal description of the territory of the proposed district, including justification
154.20for inclusion or exclusion for all parcels;
154.21(4) addresses of every property owner within the proposed district boundaries as
154.22provided by the county auditor, with certification from the county auditor; two sets of
154.23address labels for said owners; and a list of e-mail addresses for said owners, if available;
154.24(5) a statement showing the existence in the territory of the conditions requisite for
154.25creation of a district as prescribed in subdivision 1;
154.26(6) a statement of the territorial units represented by and the qualifications of the
154.27respective signers; and
154.28(7) the post office address of each signer, given under the signer's signature.
154.29A petition may consist of separate writings of like effect, each signed by one or more
154.30qualified persons, and all such writings, when filed, shall be considered together as a
154.31single petition.
154.32(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
154.33proposed creation of the district. At the meeting, information must be provided, including
154.34a description of the district's proposed structure, bylaws, territory, ordinances, budget, and
154.35charges and a description of the territory of the proposed district, including justification
154.36for inclusion or exclusion for all parcels. Notice of the meeting must be published for two
155.1successive weeks in a qualified newspaper, as defined under chapter 331A, published
155.2within the territory of the proposed district or, if there is no qualified newspaper published
155.3within the territory, in a qualified newspaper of general circulation in the territory, and
155.4must be posted for two weeks in each territorial unit of the proposed district and on the
155.5Web site of the proposed district, if one exists. Notice of the meeting must be mailed or
155.6e-mailed at least three weeks prior to the meeting to all property tax billing addresses for
155.7all parcels included in the proposed district. The following must be submitted to the chief
155.8administrative 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) the 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 a copy
155.19of the resolution from the newspaper attached; and the affidavit of resolution posting
155.20on the town or proposed district Web site.
155.21(c) Every petition must be signed as follows:
155.22(1) for each municipality wherein there is a territorial unit of the proposed district,
155.23by an authorized officer pursuant to a resolution of the municipal governing body;
155.24(2) for each organized town wherein there is a territorial unit of the proposed district,
155.25by an authorized officer pursuant to a resolution of the town board;
155.26(3) for each county wherein there is a territorial unit of the proposed district consisting
155.27of an unorganized area, by an authorized officer pursuant to a resolution of the county
155.28board or by at least 20 percent of the voters residing and owning land within the unit.
155.29(d) Each resolution must be published in the official newspaper of the governing
155.30body adopting it and becomes effective 40 days after publication, unless within said
155.31period there shall be filed with the governing body a petition signed by qualified electors
155.32of a territorial unit of the proposed district, equal in number to five percent of the number
155.33of electors voting at the last preceding election of the governing body, requesting a
155.34referendum on the resolution, in which case the resolution may not become effective until
155.35approved by a majority of the qualified electors voting at a regular election or special
155.36election that the governing body may call. The notice of an election and the ballot to be
156.1used must contain the text of the resolution followed by the question: "Shall the above
156.2resolution be approved?"
156.3(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
156.4the signer's landowner status as shown by the county auditor's tax assessment records,
156.5certified by the auditor, shall be attached to or endorsed upon the petition.
156.6(f) At any time before publication of the public notice required in subdivision 3,
156.7additional signatures may be added to the petition or amendments of the petition may
156.8be made to correct or remedy any error or defect in signature or otherwise except a
156.9material error or defect in the description of the territory of the proposed district. If the
156.10qualifications of any signer of a petition are challenged, the chief administrative law judge
156.11shall determine the challenge forthwith on the allegations of the petition, the county
156.12auditor's certificate of land ownership, and such other evidence as may be received.
156.13    Subd. 3. Notice of intent to create sanitary district. (a) Upon receipt of a petition
156.14and the record of the public meeting required under subdivision 2, the chief administrative
156.15law judge shall publish a notice of intent to create the proposed sanitary district in the State
156.16Register and mail or e-mail information of that publication to each property owner in the
156.17affected territory at the owner's address as given by the county auditor. The information
156.18must state the date that the notice will appear in the State Register and give the Web site
156.19location for the State Register. The notice must:
156.20(1) describe the petition for creation of the district;
156.21(2) describe the territory affected by the petition;
156.22(3) allow 30 days for submission of written comments on the petition;
156.23(4) state that a person who objects to the petition may submit a written request for
156.24hearing to the chief administrative law judge within 30 days of the publication of the
156.25notice in the State Register; and
156.26(5) state that if a timely request for hearing is not received, the chief administrative
156.27law judge may make a decision on the petition.
156.28(b) If 50 or more individual timely requests for hearing are received, the chief
156.29administrative law judge must hold a hearing on the petition according to the contested
156.30case provisions of chapter 14. The sanitary district proposers are responsible for paying all
156.31costs involved in publicizing and holding a hearing on the petition.
156.32    Subd. 4. Hearing time, place. If a hearing is required pursuant to subdivision 3, the
156.33chief administrative law judge shall designate a time and place for a hearing according
156.34to section 442A.13.
156.35    Subd. 5. Relevant factors. (a) In arriving at a decision, the chief administrative law
156.36judge shall consider the following factors:
157.1(1) administrative feasibility under subdivision 1, paragraph (a);
157.2(2) public health, safety, and welfare impacts;
157.3(3) alternatives for managing the public health impacts;
157.4(4) equities of the petition proposal;
157.5(5) contours of the petition proposal; and
157.6(6) public notification of and interaction on the petition proposal.
157.7(b) Based on the factors in paragraph (a), the chief administrative law judge may
157.8order the sanitary district creation on finding that:
157.9(1) the proposed district is administratively feasible;
157.10(2) the proposed district provides a long-term, equitable solution to pollution
157.11problems affecting public health, safety, and welfare;
157.12(3) property owners within the proposed district were provided notice of the
157.13proposed district and opportunity to comment on the petition proposal; and
157.14(4) the petition complied with the requirements of all applicable statutes and rules
157.15pertaining to sanitary district creation.
157.16(c) The chief administrative law judge may alter the boundaries of the proposed
157.17sanitary district by increasing or decreasing the area to be included or may exclude
157.18property that may be better served by another unit of government. The chief administrative
157.19law judge may also alter the boundaries of the proposed district so as to follow visible,
157.20clearly recognizable physical features for municipal boundaries.
157.21(d) The chief administrative law judge may deny sanitary district creation if the area,
157.22or a part thereof, would be better served by an alternative method.
157.23(e) In all cases, the chief administrative law judge shall set forth the factors that are
157.24the basis for the decision.
157.25    Subd. 6. Findings; order. After the public notice period or the public hearing, if
157.26required under subdivision 3, and based on the petition, any public comments received,
157.27and, if a hearing was held, the hearing record, the chief administrative law judge shall
157.28make findings of fact and conclusions determining whether the conditions requisite for the
157.29creation of a district exist in the territory described in the petition. If the chief administrative
157.30law judge finds that the conditions exist, the judge may make an order creating a district
157.31for the territory described in that petition under the name proposed in the petition or such
157.32other name, including the words "sanitary district," as the judge deems appropriate.
157.33    Subd. 7. Denial of petition. If the chief administrative law judge, after conclusion
157.34of the public notice period or holding a hearing, if required, determines that the creation of
157.35a district in the territory described in the petition is not warranted, the judge shall make
157.36an order denying the petition. The chief administrative law judge shall give notice of the
158.1denial by mail or e-mail to each signer of the petition. No petition for the creation of a
158.2district consisting of the same territory shall be entertained within a year after the date of
158.3an order under this subdivision. Nothing in this subdivision precludes action on a petition
158.4for the creation of a district embracing part of the territory with or without other territory.
158.5    Subd. 8. Notice of order creating sanitary district. The chief administrative law
158.6judge shall publish a notice in the State Register of the final order creating a sanitary
158.7district, referring to the date of the order and describing the territory of the district, and
158.8shall mail or e-mail information of the publication to each property owner in the affected
158.9territory at the owner's address as given by the county auditor. The information must state
158.10the date that the notice will appear in the State Register and give the Web site location
158.11for the State Register. The notice must:
158.12(1) describe the petition for creation of the district;
158.13(2) describe the territory affected by the petition; and
158.14(3) state that a certified copy of the order shall be delivered to the secretary of state
158.15for filing ten days after public notice of the order in the State Register.
158.16    Subd. 9. Filing. Ten days after public notice of the order in the State Register, the
158.17chief administrative law judge shall deliver a certified copy of the order to the secretary
158.18of state for filing. Thereupon, the creation of the district is deemed complete, and it
158.19shall be conclusively presumed that all requirements of law relating thereto have been
158.20complied with. The chief administrative law judge shall also transmit a certified copy of
158.21the order for filing to the county auditor of each county and the clerk or recorder of each
158.22municipality and organized town wherein any part of the territory of the district is situated
158.23and to the secretary of the district board when elected.

158.24    Sec. 7. [442A.05] SANITARY DISTRICT ANNEXATION.
158.25    Subdivision 1. Annexation. (a) A sanitary district annexation may occur under
158.26this chapter for any area adjacent to an existing district upon a petition to the chief
158.27administrative law judge stating the grounds therefor as provided in this section.
158.28(b) The proposed annexation area must embrace an area or a group of two or more
158.29adjacent areas, whether contiguous or separate, but not situated entirely within the limits
158.30of a single municipality. The proposed annexation must promote public health and
158.31welfare by providing an adequate and efficient system and means of collecting, conveying,
158.32pumping, treating, and disposing of domestic sewage and garbage and industrial wastes
158.33within the district. When the chief administrative law judge or the Minnesota Pollution
158.34Control Agency finds that there is need throughout the territory for the accomplishment of
158.35these purposes, that these purposes can be effectively accomplished on an equitable basis
159.1by annexation to a district, and that the creation and maintenance of such annexation will
159.2be administratively feasible and in furtherance of the public health, safety, and welfare,
159.3the chief administrative law judge shall make an order for sanitary district annexation.
159.4A sanitary district is administratively feasible under this section if the district has the
159.5financial and managerial resources needed to deliver adequate and efficient sanitary sewer
159.6services within the proposed district.
159.7(c) Notwithstanding paragraph (b), no annexation to a district shall be approved
159.8within 25 miles of the boundary of any city of the first class without the approval
159.9of the governing body thereof and the approval of the governing body of each and
159.10every municipality in the proposed annexation area by resolution filed with the chief
159.11administrative law judge.
159.12(d) If the chief administrative law judge and the Minnesota Pollution Control Agency
159.13disagree on the need for a sanitary district annexation, they must determine whether not
159.14allowing the sanitary district annexation will have a detrimental effect on the environment.
159.15If it is determined that the sanitary district annexation will prevent environmental harm,
159.16the sanitary district annexation or connection to an existing wastewater treatment system
159.17must occur.
159.18    Subd. 2. Proceeding for annexation. (a) A proceeding for sanitary district
159.19annexation may be initiated by a petition to the chief administrative law judge containing
159.20the following:
159.21(1) a request for proposed annexation to a sanitary district;
159.22(2) a legal description of the territory of the proposed annexation, including
159.23justification for inclusion or exclusion for all parcels;
159.24(3) addresses of every property owner within the existing sanitary district and
159.25proposed annexation area boundaries as provided by the county auditor, with certification
159.26from the county auditor; two sets of address labels for said owners; and a list of e-mail
159.27addresses for said owners, if available;
159.28(4) a statement showing the existence in such territory of the conditions requisite
159.29for annexation to a district as prescribed in subdivision 1;
159.30(5) a statement of the territorial units represented by and qualifications of the
159.31respective signers; and
159.32(6) the post office address of each signer, given under the signer's signature.
159.33A petition may consist of separate writings of like effect, each signed by one or more
159.34qualified persons, and all such writings, when filed, shall be considered together as a
159.35single petition.
160.1(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
160.2proposed annexation to a sanitary district. At the meeting, information must be provided,
160.3including a description of the existing sanitary district's structure, bylaws, territory,
160.4ordinances, budget, and charges; a description of the existing sanitary district's territory;
160.5and a description of the territory of the proposed annexation area, including justification
160.6for inclusion or exclusion for all parcels for the annexation area. Notice of the meeting
160.7must be published for two successive weeks in a qualified newspaper, as defined under
160.8chapter 331A, published within the territories of the existing sanitary district and proposed
160.9annexation area or, if there is no qualified newspaper published within those territories, in
160.10a qualified newspaper of general circulation in the territories, and must be posted for two
160.11weeks in each territorial unit of the existing sanitary district and proposed annexation area
160.12and on the Web site of the existing sanitary district, if one exists. Notice of the meeting
160.13must be mailed or e-mailed at least three weeks prior to the meeting to all property tax
160.14billing addresses for all parcels included in the existing sanitary district and proposed
160.15annexation area. The following must be submitted to the chief administrative law judge
160.16with the petition:
160.17(1) a record of the meeting, including copies of all information provided at the
160.18meeting;
160.19(2) a copy of the mailing list provided by the county auditor and used to notify
160.20property owners of the meeting;
160.21(3) a copy of the e-mail list used to notify property owners of the meeting;
160.22(4) the printer's affidavit of publication of the public meeting notice;
160.23(5) an affidavit of posting the public meeting notice with information on dates and
160.24locations of posting; and
160.25(6) the minutes or other record of the public meeting documenting that the following
160.26topics were discussed: printer's affidavit of publication of each resolution, with copy
160.27of resolution from newspaper attached; and affidavit of resolution posting on town or
160.28existing sanitary district Web site.
160.29(c) Every petition must be signed as follows:
160.30(1) by an authorized officer of the existing sanitary district pursuant to a resolution
160.31of the board;
160.32(2) for each municipality wherein there is a territorial unit of the proposed annexation
160.33area, by an authorized officer pursuant to a resolution of the municipal governing body;
160.34(3) for each organized town wherein there is a territorial unit of the proposed
160.35annexation area, by an authorized officer pursuant to a resolution of the town board; and
161.1(4) for each county wherein there is a territorial unit of the proposed annexation area
161.2consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
161.3county board or by at least 20 percent of the voters residing and owning land within the unit.
161.4(d) Each resolution must be published in the official newspaper of the governing
161.5body adopting it and becomes effective 40 days after publication, unless within said
161.6period there shall be filed with the governing body a petition signed by qualified electors
161.7of a territorial unit of the proposed annexation area, equal in number to five percent of the
161.8number of electors voting at the last preceding election of the governing body, requesting
161.9a referendum on the resolution, in which case the resolution may not become effective
161.10until approved by a majority of the qualified electors voting at a regular election or special
161.11election that the governing body may call. The notice of an election and the ballot to be
161.12used must contain the text of the resolution followed by the question: "Shall the above
161.13resolution be approved?"
161.14(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
161.15the signer's landowner status as shown by the county auditor's tax assessment records,
161.16certified by the auditor, shall be attached to or endorsed upon the petition.
161.17(f) At any time before publication of the public notice required in subdivision 4,
161.18additional signatures may be added to the petition or amendments of the petition may be
161.19made to correct or remedy any error or defect in signature or otherwise except a material
161.20error or defect in the description of the territory of the proposed annexation area. If the
161.21qualifications of any signer of a petition are challenged, the chief administrative law judge
161.22shall determine the challenge forthwith on the allegations of the petition, the county
161.23auditor's certificate of land ownership, and such other evidence as may be received.
161.24    Subd. 3. Joint petition. Different areas may be annexed to a district in a single
161.25proceeding upon a joint petition therefor and upon compliance with the provisions of
161.26subdivisions 1 and 2 with respect to the area affected so far as applicable.
161.27    Subd. 4. Notice of intent for sanitary district annexation. (a) Upon receipt
161.28of a petition and the record of public meeting required under subdivision 2, the chief
161.29administrative law judge shall publish a notice of intent for sanitary district annexation
161.30in the State Register and mail or e-mail information of the publication to each property
161.31owner in the affected territory at the owner's address as given by the county auditor. The
161.32information must state the date that the notice will appear in the State Register and give
161.33the Web site location for the State Register. The notice must:
161.34(1) describe the petition for sanitary district annexation;
161.35(2) describe the territory affected by the petition;
161.36(3) allow 30 days for submission of written comments on the petition;
162.1(4) state that a person who objects to the petition may submit a written request for
162.2hearing to the chief administrative law judge within 30 days of the publication of the
162.3notice in the State Register; and
162.4(5) state that if a timely request for hearing is not received, the chief administrative
162.5law judge may make a decision on the petition.
162.6(b) If 50 or more individual timely requests for hearing are received, the chief
162.7administrative law judge must hold a hearing on the petition according to the contested case
162.8provisions of chapter 14. The sanitary district or annexation area proposers are responsible
162.9for paying all costs involved in publicizing and holding a hearing on the petition.
162.10    Subd. 5. Hearing time, place. If a hearing is required under subdivision 4, the
162.11chief administrative law judge shall designate a time and place for a hearing according
162.12to section 442A.13.
162.13    Subd. 6. Relevant factors. (a) In arriving at a decision, the chief administrative law
162.14judge shall consider the following factors:
162.15(1) administrative feasibility under subdivision 1, paragraph (b);
162.16(2) public health, safety, and welfare impacts;
162.17(3) alternatives for managing the public health impacts;
162.18(4) equities of the petition proposal;
162.19(5) contours of the petition proposal; and
162.20(6) public notification of and interaction on the petition proposal.
162.21(b) Based upon these factors, the chief administrative law judge may order the
162.22annexation to the sanitary district on finding that:
162.23(1) the sanitary district is knowledgeable and experienced in delivering sanitary sewer
162.24services to ratepayers and has provided quality service in a fair and cost-effective manner;
162.25(2) the proposed annexation provides a long-term, equitable solution to pollution
162.26problems affecting public health, safety, and welfare;
162.27(3) property owners within the existing sanitary district and proposed annexation
162.28area were provided notice of the proposed district and opportunity to comment on the
162.29petition proposal; and
162.30(4) the petition complied with the requirements of all applicable statutes and rules
162.31pertaining to sanitary district annexation.
162.32(c) The chief administrative law judge may alter the boundaries of the proposed
162.33annexation area by increasing or decreasing the area to be included or may exclude
162.34property that may be better served by another unit of government. The chief administrative
162.35law judge may also alter the boundaries of the proposed annexation area so as to follow
162.36visible, clearly recognizable physical features for municipal boundaries.
163.1(d) The chief administrative law judge may deny sanitary district annexation if the
163.2area, or a part thereof, would be better served by an alternative method.
163.3(e) In all cases, the chief administrative law judge shall set forth the factors that are
163.4the basis for the decision.
163.5    Subd. 7. Findings; order. (a) After the public notice period or the public hearing, if
163.6required under subdivision 4, and based on the petition, any public comments received,
163.7and, if a hearing was held, the hearing record, the chief administrative law judge shall
163.8make findings of fact and conclusions determining whether the conditions requisite for
163.9the sanitary district annexation exist in the territory described in the petition. If the chief
163.10administrative law judge finds that conditions exist, the judge may make an order for
163.11sanitary district annexation for the territory described in the petition.
163.12(b) All taxable property within the annexed area shall be subject to taxation for
163.13any existing bonded indebtedness or other indebtedness of the district for the cost of
163.14acquisition, construction, or improvement of any disposal system or other works or
163.15facilities beneficial to the annexed area to such extent as the chief administrative law judge
163.16may determine to be just and equitable, to be specified in the order for annexation. The
163.17proper officers shall levy further taxes on such property accordingly.
163.18    Subd. 8. Denial of petition. If the chief administrative law judge, after conclusion
163.19of the public notice period or holding a hearing, if required, determines that the sanitary
163.20district annexation in the territory described in the petition is not warranted, the judge shall
163.21make an order denying the petition. The chief administrative law judge shall give notice
163.22of the denial by mail or e-mail to each signer of the petition. No petition for a sanitary
163.23district annexation consisting of the same territory shall be entertained within a year
163.24after the date of an order under this subdivision. Nothing in this subdivision precludes
163.25action on a petition for a sanitary district annexation embracing part of the territory with
163.26or without other territory.
163.27    Subd. 9. Notice of order for sanitary district annexation. The chief administrative
163.28law judge shall publish in the State Register a notice of the final order for sanitary district
163.29annexation, referring to the date of the order and describing the territory of the annexation
163.30area, and shall mail or e-mail information of the publication to each property owner in the
163.31affected territory at the owner's address as given by the county auditor. The information
163.32must state the date that the notice will appear in the State Register and give the Web site
163.33location for the State Register. The notice must:
163.34(1) describe the petition for annexation to the district;
163.35(2) describe the territory affected by the petition; and
164.1(3) state that a certified copy of the order shall be delivered to the secretary of state
164.2for filing ten days after public notice of the order in the State Register.
164.3    Subd. 10. Filing. Ten days after public notice of the order in the State Register, the
164.4chief administrative law judge shall deliver a certified copy of the order to the secretary
164.5of state for filing. Thereupon, the sanitary district annexation is deemed complete, and it
164.6shall be conclusively presumed that all requirements of law relating thereto have been
164.7complied with. The chief administrative law judge shall also transmit a certified copy of
164.8the order for filing to the county auditor of each county and the clerk or recorder of each
164.9municipality and organized town wherein any part of the territory of the district, including
164.10the newly annexed area, is situated and to the secretary of the district board.

164.11    Sec. 8. [442A.06] SANITARY DISTRICT DETACHMENT.
164.12    Subdivision 1. Detachment. (a) A sanitary district detachment may occur under this
164.13chapter for any area within an existing district upon a petition to the chief administrative
164.14law judge stating the grounds therefor as provided in this section.
164.15(b) The proposed detachment must not have any negative environmental impact
164.16on the proposed detachment area.
164.17(c) If the chief administrative law judge and the Minnesota Pollution Control
164.18Agency disagree on the need for a sanitary district detachment, they must determine
164.19whether not allowing the sanitary district detachment will have a detrimental effect on
164.20the environment. If it is determined that the sanitary district detachment will cause
164.21environmental harm, the sanitary district detachment is not allowed unless the detached
164.22area is immediately connected to an existing wastewater treatment system.
164.23    Subd. 2. Proceeding for detachment. (a) A proceeding for sanitary district
164.24detachment may be initiated by a petition to the chief administrative law judge containing
164.25the following:
164.26(1) a request for proposed detachment from a sanitary district;
164.27(2) a statement that the requisite conditions for inclusion in a district no longer exist
164.28in the proposed detachment area;
164.29(3) a legal description of the territory of the proposed detachment, including
164.30justification for inclusion or exclusion for all parcels;
164.31(4) addresses of every property owner within the sanitary district and proposed
164.32detachment area boundaries as provided by the county auditor, with certification from the
164.33county auditor; two sets of address labels for said owners; and a list of e-mail addresses
164.34for said owners, if available;
165.1(5) a statement of the territorial units represented by and qualifications of the
165.2respective signers; and
165.3(6) the post office address of each signer, given under the signer's signature.
165.4A petition may consist of separate writings of like effect, each signed by one or more
165.5qualified persons, and all such writings, when filed, shall be considered together as a
165.6single petition.
165.7(b) Petitioners must conduct and pay for a public meeting to inform citizens of
165.8the proposed detachment from a sanitary district. At the meeting, information must be
165.9provided, including a description of the existing district's territory and a description of the
165.10territory of the proposed detachment area, including justification for inclusion or exclusion
165.11for all parcels for the detachment area. Notice of the meeting must be published for two
165.12successive weeks in a qualified newspaper, as defined under chapter 331A, published
165.13within the territories of the existing sanitary district and proposed detachment area or, if
165.14there is no qualified newspaper published within those territories, in a qualified newspaper
165.15of general circulation in the territories, and must be posted for two weeks in each territorial
165.16unit of the existing sanitary district and proposed detachment area and on the Web site
165.17of the existing sanitary district, if one exists. Notice of the meeting must be mailed or
165.18e-mailed at least three weeks prior to the meeting to all property tax billing addresses for
165.19all parcels included in the sanitary district. The following must be submitted to the chief
165.20administrative law judge with the petition:
165.21(1) a record of the meeting, including copies of all information provided at the
165.22meeting;
165.23(2) a copy of the mailing list provided by the county auditor and used to notify
165.24property owners of the meeting;
165.25(3) a copy of the e-mail list used to notify property owners of the meeting;
165.26(4) the printer's affidavit of publication of public meeting notice;
165.27(5) an affidavit of posting the public meeting notice with information on dates and
165.28locations of posting; and
165.29(6) minutes or other record of the public meeting documenting that the following
165.30topics were discussed: printer's affidavit of publication of each resolution, with copy
165.31of resolution from newspaper attached; and affidavit of resolution posting on town or
165.32existing sanitary district Web site.
165.33(c) Every petition must be signed as follows:
165.34(1) by an authorized officer of the existing sanitary district pursuant to a resolution
165.35of the board;
166.1(2) for each municipality wherein there is a territorial unit of the proposed detachment
166.2area, by an authorized officer pursuant to a resolution of the municipal governing body;
166.3(3) for each organized town wherein there is a territorial unit of the proposed
166.4detachment area, by an authorized officer pursuant to a resolution of the town board; and
166.5(4) for each county wherein there is a territorial unit of the proposed detachment area
166.6consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
166.7county board or by at least 20 percent of the voters residing and owning land within the unit.
166.8(d) Each resolution must be published in the official newspaper of the governing
166.9body adopting it and becomes effective 40 days after publication, unless within said period
166.10there shall be filed with the governing body a petition signed by qualified electors of a
166.11territorial unit of the proposed detachment area, equal in number to five percent of the
166.12number of electors voting at the last preceding election of the governing body, requesting
166.13a referendum on the resolution, in which case the resolution may not become effective
166.14until approved by a majority of the qualified electors voting at a regular election or special
166.15election that the governing body may call. The notice of an election and the ballot to be
166.16used must contain the text of the resolution followed by the question: "Shall the above
166.17resolution be approved?"
166.18(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
166.19the signer's landowner status as shown by the county auditor's tax assessment records,
166.20certified by the auditor, shall be attached to or endorsed upon the petition.
166.21(f) At any time before publication of the public notice required in subdivision 4,
166.22additional signatures may be added to the petition or amendments of the petition may be
166.23made to correct or remedy any error or defect in signature or otherwise except a material
166.24error or defect in the description of the territory of the proposed detachment area. If the
166.25qualifications of any signer of a petition are challenged, the chief administrative law judge
166.26shall determine the challenge forthwith on the allegations of the petition, the county
166.27auditor's certificate of land ownership, and such other evidence as may be received.
166.28    Subd. 3. Joint petition. Different areas may be detached from a district in a single
166.29proceeding upon a joint petition therefor and upon compliance with the provisions of
166.30subdivisions 1 and 2 with respect to the area affected so far as applicable.
166.31    Subd. 4. Notice of intent for sanitary district detachment. (a) Upon receipt
166.32of a petition and record of public meeting required under subdivision 2, the chief
166.33administrative law judge shall publish a notice of intent for sanitary district detachment
166.34in the State Register and mail or e-mail information of the publication to each property
166.35owner in the affected territory at the owner's address as given by the county auditor. The
167.1information must state the date that the notice will appear in the State Register and give
167.2the Web site location for the State Register. The notice must:
167.3(1) describe the petition for sanitary district detachment;
167.4(2) describe the territory affected by the petition;
167.5(3) allow 30 days for submission of written comments on the petition;
167.6(4) state that a person who objects to the petition may submit a written request for
167.7hearing to the chief administrative law judge within 30 days of the publication of the
167.8notice in the State Register; and
167.9(5) state that if a timely request for hearing is not received, the chief administrative
167.10law judge may make a decision on the petition.
167.11(b) If 50 or more individual timely requests for hearing are received, the chief
167.12administrative law judge must hold a hearing on the petition according to the contested case
167.13provisions of chapter 14. The sanitary district or detachment area proposers are responsible
167.14for paying all costs involved in publicizing and holding a hearing on the petition.
167.15    Subd. 5. Hearing time, place. If a hearing is required under subdivision 4, the
167.16chief administrative law judge shall designate a time and place for a hearing according
167.17to section 442A.13.
167.18    Subd. 6. Relevant factors. (a) In arriving at a decision, the chief administrative law
167.19judge shall consider the following factors:
167.20(1) public health, safety, and welfare impacts for the proposed detachment area;
167.21(2) alternatives for managing the public health impacts for the proposed detachment
167.22area;
167.23(3) equities of the petition proposal;
167.24(4) contours of the petition proposal; and
167.25(5) public notification of and interaction on the petition proposal.
167.26(b) Based upon these factors, the chief administrative law judge may order the
167.27detachment from the sanitary district on finding that:
167.28(1) the proposed detachment area has adequate alternatives for managing public
167.29health impacts due to the detachment;
167.30(2) the proposed detachment area is not necessary for the district to provide a
167.31long-term, equitable solution to pollution problems affecting public health, safety, and
167.32welfare;
167.33(3) property owners within the existing sanitary district and proposed detachment
167.34area were provided notice of the proposed detachment and opportunity to comment on
167.35the petition proposal; and
168.1(4) the petition complied with the requirements of all applicable statutes and rules
168.2pertaining to sanitary district detachment.
168.3(c) The chief administrative law judge may alter the boundaries of the proposed
168.4detachment area by increasing or decreasing the area to be included or may exclude
168.5property that may be better served by another unit of government. The chief administrative
168.6law judge may also alter the boundaries of the proposed detachment area so as to follow
168.7visible, clearly recognizable physical features for municipal boundaries.
168.8(d) The chief administrative law judge may deny sanitary district detachment if the
168.9area, or a part thereof, would be better served by an alternative method.
168.10(e) In all cases, the chief administrative law judge shall set forth the factors that are
168.11the basis for the decision.
168.12    Subd. 7. Findings; order. (a) After the public notice period or the public hearing, if
168.13required under subdivision 4, and based on the petition, any public comments received,
168.14and, if a hearing was held, the hearing record, the chief administrative law judge shall
168.15make findings of fact and conclusions determining whether the conditions requisite for
168.16the sanitary district detachment exist in the territory described in the petition. If the chief
168.17administrative law judge finds that conditions exist, the judge may make an order for
168.18sanitary district detachment for the territory described in the petition.
168.19(b) All taxable property within the detached area shall remain subject to taxation
168.20for any existing bonded indebtedness of the district to such extent as it would have been
168.21subject thereto if not detached and shall also remain subject to taxation for any other
168.22existing indebtedness of the district incurred for any purpose beneficial to such area to
168.23such extent as the chief administrative law judge may determine to be just and equitable,
168.24to be specified in the order for detachment. The proper officers shall levy further taxes on
168.25such property accordingly.
168.26    Subd. 8. Denial of petition. If the chief administrative law judge, after conclusion
168.27of the public notice period or holding a hearing, if required, determines that the sanitary
168.28district detachment in the territory described in the petition is not warranted, the judge
168.29shall make an order denying the petition. The chief administrative law judge shall give
168.30notice of the denial by mail or e-mail to each signer of the petition. No petition for a
168.31detachment from a district consisting of the same territory shall be entertained within a
168.32year after the date of an order under this subdivision. Nothing in this subdivision precludes
168.33action on a petition for a detachment from a district embracing part of the territory with
168.34or without other territory.
168.35    Subd. 9. Notice of order for sanitary district detachment. The chief
168.36administrative law judge shall publish in the State Register a notice of the final order
169.1for sanitary district detachment, referring to the date of the order and describing the
169.2territory of the detached area and shall mail or e-mail information of the publication
169.3to each property owner in the affected territory at the owner's address as given by the
169.4county auditor. The information must state the date that the notice will appear in the State
169.5Register and give the Web site location for the State Register. The notice must:
169.6(1) describe the petition for detachment from the district;
169.7(2) describe the territory affected by the petition; and
169.8(3) state that a certified copy of the order shall be delivered to the secretary of state
169.9for filing ten days after public notice of the order in the State Register.
169.10    Subd. 10. Filing. Ten days after public notice of the order in the State Register, the
169.11chief administrative law judge shall deliver a certified copy of the order to the secretary of
169.12state for filing. Thereupon, the sanitary district detachment is deemed complete, and it
169.13shall be conclusively presumed that all requirements of law relating thereto have been
169.14complied with. The chief administrative law judge shall also transmit a certified copy of
169.15the order for filing to the county auditor of each county and the clerk or recorder of each
169.16municipality and organized town wherein any part of the territory of the district, including
169.17the newly detached area, is situated and to the secretary of the district board.

169.18    Sec. 9. [442A.07] SANITARY DISTRICT DISSOLUTION.
169.19    Subdivision 1. Dissolution. (a) An existing sanitary district may be dissolved under
169.20this chapter upon a petition to the chief administrative law judge stating the grounds
169.21therefor as provided in this section.
169.22(b) The proposed dissolution must not have any negative environmental impact on
169.23the existing sanitary district area.
169.24(c) If the chief administrative law judge and the Minnesota Pollution Control
169.25Agency disagree on the need to dissolve a sanitary district, they must determine whether
169.26not dissolving the sanitary district will have a detrimental effect on the environment. If
169.27it is determined that the sanitary district dissolution will cause environmental harm, the
169.28sanitary district dissolution is not allowed unless the existing sanitary district area is
169.29immediately connected to an existing wastewater treatment system.
169.30    Subd. 2. Proceeding for dissolution. (a) A proceeding for sanitary district
169.31dissolution may be initiated by a petition to the chief administrative law judge containing
169.32the following:
169.33(1) a request for proposed sanitary district dissolution;
169.34(2) a statement that the requisite conditions for a sanitary district no longer exist
169.35in the district area;
170.1(3) a proposal for distribution of the remaining funds of the district, if any, among
170.2the related governmental subdivisions;
170.3(4) a legal description of the territory of the proposed dissolution;
170.4(5) addresses of every property owner within the sanitary district boundaries as
170.5provided by the county auditor, with certification from the county auditor; two sets of
170.6address labels for said owners; and a list of e-mail addresses for said owners, if available;
170.7(6) a statement of the territorial units represented by and the qualifications of the
170.8respective signers; and
170.9(7) the post office address of each signer, given under the signer's signature.
170.10A petition may consist of separate writings of like effect, each signed by one or more
170.11qualified persons, and all such writings, when filed, shall be considered together as a
170.12single petition.
170.13(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
170.14proposed dissolution of a sanitary district. At the meeting, information must be provided,
170.15including a description of the existing district's territory. Notice of the meeting must be
170.16published for two successive weeks in a qualified newspaper, as defined under chapter
170.17331A, published within the territory of the sanitary district or, if there is no qualified
170.18newspaper published within that territory, in a qualified newspaper of general circulation
170.19in the territory and must be posted for two weeks in each territorial unit of the sanitary
170.20district and on the Web site of the existing sanitary district, if one exists. Notice of the
170.21meeting must be mailed or e-mailed at least three weeks prior to the meeting to all property
170.22tax billing addresses for all parcels included in the sanitary district. The following must be
170.23submitted to the chief administrative law judge with the petition:
170.24(1) a record of the meeting, including copies of all information provided at the
170.25meeting;
170.26(2) a copy of the mailing list provided by the county auditor and used to notify
170.27property owners of the meeting;
170.28(3) a copy of the e-mail list used to notify property owners of the meeting;
170.29(4) the printer's affidavit of publication of public meeting notice;
170.30(5) an affidavit of posting the public meeting notice with information on dates and
170.31locations of posting; and
170.32(6) minutes or other record of the public meeting documenting that the following
170.33topics were discussed: printer's affidavit of publication of each resolution, with copy
170.34of resolution from newspaper attached; and affidavit of resolution posting on town or
170.35existing sanitary district Web site.
170.36(c) Every petition must be signed as follows:
171.1(1) by an authorized officer of the existing sanitary district pursuant to a resolution
171.2of the board;
171.3(2) for each municipality wherein there is a territorial unit of the existing sanitary
171.4district, by an authorized officer pursuant to a resolution of the municipal governing body;
171.5(3) for each organized town wherein there is a territorial unit of the existing sanitary
171.6district, by an authorized officer pursuant to a resolution of the town board; and
171.7(4) for each county wherein there is a territorial unit of the existing sanitary district
171.8consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
171.9county board or by at least 20 percent of the voters residing and owning land within the unit.
171.10(d) Each resolution must be published in the official newspaper of the governing body
171.11adopting it and becomes effective 40 days after publication, unless within said period there
171.12shall be filed with the governing body a petition signed by qualified electors of a territorial
171.13unit of the district, equal in number to five percent of the number of electors voting at the
171.14last preceding election of the governing body, requesting a referendum on the resolution,
171.15in which case the resolution may not become effective until approved by a majority of the
171.16qualified electors voting at a regular election or special election that the governing body
171.17may call. The notice of an election and the ballot to be used must contain the text of the
171.18resolution followed by the question: "Shall the above resolution be approved?"
171.19(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
171.20the signer's landowner status as shown by the county auditor's tax assessment records,
171.21certified by the auditor, shall be attached to or endorsed upon the petition.
171.22(f) At any time before publication of the public notice required in subdivision 3,
171.23additional signatures may be added to the petition or amendments of the petition may be
171.24made to correct or remedy any error or defect in signature or otherwise except a material
171.25error or defect in the description of the territory of the proposed dissolution area. If the
171.26qualifications of any signer of a petition are challenged, the chief administrative law judge
171.27shall determine the challenge forthwith on the allegations of the petition, the county
171.28auditor's certificate of land ownership, and such other evidence as may be received.
171.29    Subd. 3. Notice of intent for sanitary district dissolution. (a) Upon receipt
171.30of a petition and record of the public meeting required under subdivision 2, the chief
171.31administrative law judge shall publish a notice of intent of sanitary district dissolution
171.32in the State Register and mail or e-mail information of the publication to each property
171.33owner in the affected territory at the owner's address as given by the county auditor. The
171.34information must state the date that the notice will appear in the State Register and give
171.35the Web site location for the State Register. The notice must:
171.36(1) describe the petition for sanitary district dissolution;
172.1(2) describe the territory affected by the petition;
172.2(3) allow 30 days for submission of written comments on the petition;
172.3(4) state that a person who objects to the petition may submit a written request for
172.4hearing to the chief administrative law judge within 30 days of the publication of the
172.5notice in the State Register; and
172.6(5) state that if a timely request for hearing is not received, the chief administrative
172.7law judge may make a decision on the petition.
172.8(b) If 50 or more individual timely requests for hearing are received, the chief
172.9administrative law judge must hold a hearing on the petition according to the contested
172.10case provisions of chapter 14. The sanitary district dissolution proposers are responsible
172.11for paying all costs involved in publicizing and holding a hearing on the petition.
172.12    Subd. 4. Hearing time, place. If a hearing is required under subdivision 3, the
172.13chief administrative law judge shall designate a time and place for a hearing according
172.14to section 442A.13.
172.15    Subd. 5. Relevant factors. (a) In arriving at a decision, the chief administrative law
172.16judge shall consider the following factors:
172.17(1) public health, safety, and welfare impacts for the proposed dissolution;
172.18(2) alternatives for managing the public health impacts for the proposed dissolution;
172.19(3) equities of the petition proposal;
172.20(4) contours of the petition proposal; and
172.21(5) public notification of and interaction on the petition proposal.
172.22(b) Based upon these factors, the chief administrative law judge may order the
172.23dissolution of the sanitary district on finding that:
172.24(1) the proposed dissolution area has adequate alternatives for managing public
172.25health impacts due to the dissolution;
172.26(2) the sanitary district is not necessary to provide a long-term, equitable solution to
172.27pollution problems affecting public health, safety, and welfare;
172.28(3) property owners within the sanitary district were provided notice of the proposed
172.29dissolution and opportunity to comment on the petition proposal; and
172.30(4) the petition complied with the requirements of all applicable statutes and rules
172.31pertaining to sanitary district dissolution.
172.32(c) The chief administrative law judge may alter the boundaries of the proposed
172.33dissolution area by increasing or decreasing the area to be included or may exclude
172.34property that may be better served by another unit of government. The chief administrative
172.35law judge may also alter the boundaries of the proposed dissolution area so as to follow
172.36visible, clearly recognizable physical features for municipal boundaries.
173.1(d) The chief administrative law judge may deny sanitary district dissolution if the
173.2area, or a part thereof, would be better served by an alternative method.
173.3(e) In all cases, the chief administrative law judge shall set forth the factors that are
173.4the basis for the decision.
173.5    Subd. 6. Findings; order. (a) After the public notice period or the public hearing, if
173.6required under subdivision 3, and based on the petition, any public comments received,
173.7and, if a hearing was held, the hearing record, the chief administrative law judge shall
173.8make findings of fact and conclusions determining whether the conditions requisite for
173.9the sanitary district dissolution exist in the territory described in the petition. If the chief
173.10administrative law judge finds that conditions exist, the judge may make an order for
173.11sanitary district dissolution for the territory described in the petition.
173.12(b) If the chief administrative law judge determines that the conditions requisite for
173.13the creation of the district no longer exist therein, that all indebtedness of the district has
173.14been paid, and that all property of the district except funds has been disposed of, the judge
173.15may make an order dissolving the district and directing the distribution of its remaining
173.16funds, if any, among the related governmental subdivisions on such basis as the chief
173.17administrative law judge determines to be just and equitable, to be specified in the order.
173.18    Subd. 7. Denial of petition. If the chief administrative law judge, after conclusion
173.19of the public notice period or holding a hearing, if required, determines that the sanitary
173.20district dissolution in the territory described in the petition is not warranted, the judge
173.21shall make an order denying the petition. The chief administrative law judge shall give
173.22notice of the denial by mail or e-mail to each signer of the petition. No petition for the
173.23dissolution of a district consisting of the same territory shall be entertained within a year
173.24after the date of an order under this subdivision.
173.25    Subd. 8. Notice of order for sanitary district dissolution. The chief administrative
173.26law judge shall publish in the State Register a notice of the final order for sanitary
173.27district dissolution, referring to the date of the order and describing the territory of the
173.28dissolved district and shall mail or e-mail information of the publication to each property
173.29owner in the affected territory at the owner's address as given by the county auditor. The
173.30information must state the date that the notice will appear in the State Register and give
173.31the Web site location of the State Register. The notice must:
173.32(1) describe the petition for dissolution of the district;
173.33(2) describe the territory affected by the petition; and
173.34(3) state that a certified copy of the order shall be delivered to the secretary of state
173.35for filing ten days after public notice of the order in the State Register.
174.1    Subd. 9. Filing. (a) Ten days after public notice of the order in the State Register,
174.2the chief administrative law judge shall deliver a certified copy of the order to the secretary
174.3of state for filing. Thereupon, the sanitary district dissolution is deemed complete, and it
174.4shall be conclusively presumed that all requirements of law relating thereto have been
174.5complied with. The chief administrative law judge shall also transmit a certified copy of
174.6the order for filing to the county auditor of each county and the clerk or recorder of each
174.7municipality and organized town wherein any part of the territory of the dissolved district
174.8is situated and to the secretary of the district board.
174.9(b) The chief administrative law judge shall also transmit a certified copy of the order
174.10to the treasurer of the district, who must thereupon distribute the remaining funds of the
174.11district as directed by the order and who is responsible for the funds until so distributed.

174.12    Sec. 10. [442A.08] JOINT PUBLIC INFORMATIONAL MEETING.
174.13There must be a joint public informational meeting of the local governments of any
174.14proposed sanitary district creation, annexation, detachment, or dissolution. The joint public
174.15informational meeting must be held after the final mediation meeting or the final meeting
174.16held according to section 442A.02, subdivision 8, if any, and before the hearing on the
174.17matter is held. If no mediation meetings are held, the joint public informational meeting
174.18must be held after the initiating documents have been filed and before the hearing on the
174.19matter. The time, date, and place of the public informational meeting must be determined
174.20jointly by the local governments in the proposed creation, annexation, detachment, or
174.21dissolution areas and by the sanitary district, if one exists. The chair of the sanitary district,
174.22if one exists, and the responsible official for one of the local governments represented at
174.23the meeting must serve as the co-chairs for the informational meeting. Notice of the time,
174.24date, place, and purpose of the informational meeting must be posted by the sanitary
174.25district, if one exists, and local governments in designated places for posting notices. The
174.26sanitary district, if one exists, and represented local governments must also publish, at their
174.27own expense, notice in their respective official newspapers. If the same official newspaper
174.28is used by multiple local government representatives or the sanitary district, a joint notice
174.29may be published and the costs evenly divided. All notice required by this section must
174.30be provided at least ten days before the date for the public informational meeting. At the
174.31public informational meeting, all persons appearing must have an opportunity to be heard,
174.32but the co-chairs may, by mutual agreement, establish the amount of time allowed for each
174.33speaker. The sanitary district board, the local government representatives, and any resident
174.34or affected property owner may be represented by counsel and may place into the record of
174.35the informational meeting documents, expert opinions, or other materials supporting their
175.1positions on issues raised by the proposed proceeding. The secretary of the sanitary district,
175.2if one exists, or a person appointed by the chair must record minutes of the proceedings of
175.3the informational meeting and must make an audio recording of the informational meeting.
175.4The sanitary district, if one exists, or a person appointed by the chair must provide the
175.5chief administrative law judge and the represented local governments with a copy of the
175.6printed minutes and must provide the chief administrative law judge and the represented
175.7local governments with a copy of the audio recording. The record of the informational
175.8meeting for a proceeding under section 442A.04, 442A.05, 442A.06, or 442A.07 is
175.9admissible in any proceeding under this chapter and shall be taken into consideration by
175.10the chief administrative law judge or the chief administrative law judge's designee.

175.11    Sec. 11. [442A.09] ANNEXATION BY ORDER OF POLLUTION CONTROL
175.12AGENCY.
175.13    Subdivision 1. Annexation by ordinance alternative. If a determination or order
175.14by the Minnesota Pollution Control Agency under section 115.49 or other similar statute is
175.15made that cooperation by contract is necessary and feasible between a sanitary district and
175.16an unincorporated area located outside the existing corporate limits of the sanitary district,
175.17the sanitary district required to provide or extend through a contract a governmental
175.18service to an unincorporated area, during the statutory 90-day period provided in section
175.19115.49 to formulate a contract, may in the alternative to formulating a service contract to
175.20provide or extend the service, declare the unincorporated area described in the Minnesota
175.21Pollution Control Agency's determination letter or order annexed to the sanitary district by
175.22adopting an ordinance and submitting it to the chief administrative law judge.
175.23    Subd. 2. Chief administrative law judge's role. The chief administrative law
175.24judge may review and comment on the ordinance but shall approve the ordinance within
175.2530 days of receipt. The ordinance is final and the annexation is effective on the date the
175.26chief administrative law judge approves the ordinance.

175.27    Sec. 12. [442A.10] PETITIONERS TO PAY EXPENSES.
175.28Expenses of the preparation and submission of petitions in the proceedings under
175.29sections 442A.04 to 442A.09 shall be paid by the petitioners. Notwithstanding section
175.3016A.1283, the Office of Administrative Hearings may adopt rules according to section
175.3114.386 to establish fees necessary to support the preparation and submission of petitions
175.32in proceedings under sections 442A.04 to 442A.09. The fees collected by the Office of
175.33Administrative Hearings shall be deposited in the environmental fund.
175.34EFFECTIVE DATE.This section is effective the day following final enactment.

176.1    Sec. 13. [442A.11] TIME LIMITS FOR ORDERS; APPEALS.
176.2    Subdivision 1. Orders; time limit. All orders in proceedings under this chapter
176.3shall be issued within one year from the date of the first hearing thereon, provided that
176.4the time may be extended for a fixed additional period upon consent of all parties of
176.5record. Failure to so order shall be deemed to be an order denying the matter. An appeal
176.6may be taken from such failure to so order in the same manner as an appeal from an
176.7order as provided in subdivision 2.
176.8    Subd. 2. Grounds for appeal. (a) Any person aggrieved by an order issued under
176.9this chapter may appeal to the district court upon the following grounds:
176.10(1) the order was issued without jurisdiction to act;
176.11(2) the order exceeded the jurisdiction of the presiding administrative law judge;
176.12(3) the order was arbitrary, fraudulent, capricious, or oppressive or in unreasonable
176.13disregard of the best interests of the territory affected; or
176.14(4) the order was based upon an erroneous theory of law.
176.15(b) The appeal must be taken in the district court in the county in which the majority
176.16of the area affected is located. The appeal does not stay the effect of the order. All notices
176.17and other documents must be served on both the chief administrative law judge and the
176.18attorney general's assistant assigned to the chief administrative law judge for purposes
176.19of this chapter.
176.20(c) If the court determines that the action involved is unlawful or unreasonable or is
176.21not warranted by the evidence in case an issue of fact is involved, the court may vacate or
176.22suspend the action involved, in whole or in part, as the case requires. The matter shall then
176.23be remanded for further action in conformity with the decision of the court.
176.24(d) To render a review of an order effectual, the aggrieved person shall file with the
176.25court administrator of the district court of the county in which the majority of the area is
176.26located, within 30 days of the order, an application for review together with the grounds
176.27upon which the review is sought.
176.28(e) An appeal lies from the district court as in other civil cases.

176.29    Sec. 14. [442A.12] CHIEF ADMINISTRATIVE LAW JUDGE MAY APPEAL
176.30FROM DISTRICT COURT.
176.31An appeal may be taken under the Rules of Civil Appellate Procedure by the chief
176.32administrative law judge from a final order or judgment made or rendered by the district
176.33court when the chief administrative law judge determines that the final order or judgment
176.34adversely affects the public interest.

177.1    Sec. 15. [442A.13] UNIFORM PROCEDURES.
177.2    Subdivision 1. Hearings. (a) Proceedings initiated by the submission of an initiating
177.3document or by the chief administrative law judge shall come on for hearing within 30 to
177.460 days from receipt of the document by the chief administrative law judge or from the
177.5date of the chief administrative law judge's action and the person conducting the hearing
177.6must submit an order no later than one year from the date of the first hearing.
177.7(b) The place of the hearing shall be in the county where a majority of the affected
177.8territory is situated, and shall be established for the convenience of the parties.
177.9(c) The chief administrative law judge shall mail notice of the hearing to the
177.10following parties: the sanitary district; any township or municipality presently governing
177.11the affected territory; any township or municipality abutting the affected territory;
177.12the county where the affected territory is situated; and each planning agency that has
177.13jurisdiction over the affected area.
177.14(d) The chief administrative law judge shall see that notice of the hearing is published
177.15for two successive weeks in a legal newspaper of general circulation in the affected area.
177.16(e) When the chief administrative law judge exercises authority to change the
177.17boundaries of the affected area so as to increase the quantity of land, the hearing shall
177.18be recessed and reconvened upon two weeks' published notice in a legal newspaper of
177.19general circulation in the affected area.
177.20    Subd. 2. Transmittal of order. The chief administrative law judge shall see that
177.21copies of the order are mailed to all parties entitled to mailed notice of hearing under
177.22subdivision 1, individual property owners if initiated in that manner, and any other party
177.23of record.

177.24    Sec. 16. [442A.14] DISTRICT BOARD OF MANAGERS.
177.25    Subdivision 1. Composition. The governing body of each district shall be a board
177.26of managers of five members, who shall be voters residing in the district and who may
177.27but need not be officers, members of governing bodies, or employees of the related
177.28governmental subdivisions, except that when there are more than five territorial units in
177.29a district, there must be one board member for each unit.
177.30    Subd. 2. Terms. The terms of the first board members elected after creation of a
177.31district shall be so arranged and determined by the electing body as to expire on the first
177.32business day in January as follows:
177.33(1) the terms of two members in the second calendar year after the year in which
177.34they were elected;
178.1(2) the terms of two other members in the third calendar year after the year in which
178.2they were elected; and
178.3(3) the term of the remaining member in the fourth calendar year after the year in
178.4which the member was elected. In case a board has more than five members, the additional
178.5members shall be assigned to the groups under clauses (1) to (3) to equalize the groups as
178.6far as practicable. Thereafter, board members shall be elected successively for regular
178.7terms beginning upon expiration of the preceding terms and expiring on the first business
178.8day in January of the third calendar year thereafter. Each board member serves until
178.9a successor is elected and has qualified.
178.10    Subd. 3. Election of board. In a district having only one territorial unit, all the
178.11members of the board shall be elected by the related governing body. In a district having
178.12more than one territorial unit, the members of the board shall be elected by the members
178.13of the related governing bodies in joint session except as otherwise provided. The electing
178.14bodies concerned shall meet and elect the first board members of a new district as soon
178.15as practicable after creation of the district and shall meet and elect board members for
178.16succeeding regular terms as soon as practicable after November 1 next preceding the
178.17beginning of the terms to be filled, respectively.
178.18    Subd. 4. Central related governing body. Upon the creation of a district
178.19having more than one territorial unit, the chief administrative law judge, on the basis of
178.20convenience for joint meeting purposes, shall designate one of the related governing
178.21bodies as the central related governing body in the order creating the district or in a
178.22subsequent special order, of which the chief administrative law judge shall notify the
178.23clerks or recorders of all the related governing bodies. Upon receipt of the notification,
178.24the clerk or recorder of the central related governing body shall immediately transmit the
178.25notification to the presiding officer of the body. The officer shall thereupon call a joint
178.26meeting of the members of all the related governing bodies to elect board members, to
178.27be held at such time as the officer shall fix at the regular meeting place of the officer's
178.28governing body or at such other place in the district as the officer shall determine. The
178.29clerk or recorder of the body must give at least ten days' notice of the meeting by mail to
178.30the clerks or recorders of all the other related governing bodies, who shall immediately
178.31transmit the notice to all the members of the related governing bodies, respectively.
178.32Subsequent joint meetings to elect board members for regular terms must be called and
178.33held in like manner. The presiding officer and the clerk or recorder of the central related
178.34governing body shall act respectively as chair and secretary of the joint electing body at
178.35any meeting thereof, but in case of the absence or disability of either of them, the body
179.1may elect a temporary substitute. A majority of the members of each related governing
179.2body is required for a quorum at any meeting of the joint electing body.
179.3    Subd. 5. Nominations. Nominations for board members may be made by petitions,
179.4each signed by ten or more voters residing and owning land in the district, filed with the
179.5clerk, recorder, or secretary of the electing body before the election meeting. No person
179.6shall sign more than one petition. The electing body shall give due consideration to all
179.7nominations but is not limited thereto.
179.8    Subd. 6. Election; single governing body. In the case of an electing body
179.9consisting of a single related governing body, a majority vote of all members is required
179.10for an election. In the case of a joint electing body, a majority vote of members present is
179.11required for an election. In case of lack of a quorum or failure to elect, a meeting of an
179.12electing body may be adjourned to a stated time and place without further notice.
179.13    Subd. 7. Election; multiple governing bodies. In any district having more than
179.14one territorial unit, the related governing bodies, instead of meeting in joint session, may
179.15elect a board member by resolutions adopted by all of them separately, concurring in the
179.16election of the same person. A majority vote of all members of each related governing
179.17body is required for the adoption of any such resolution. The clerks or recorders of the
179.18other related governing bodies shall transmit certified copies of the resolutions to the clerk
179.19or recorder of the central related governing body. Upon receipt of concurring resolutions
179.20from all the related governing bodies, the presiding officer and clerk or recorder of the
179.21central related governing body shall certify the results and furnish certificates of election
179.22as provided for a joint meeting.
179.23    Subd. 8. Vacancies. Any vacancy in the membership of a board must be filled for
179.24the unexpired term in like manner as provided for the regular election of board members.
179.25    Subd. 9. Certification of election; temporary chair. The presiding and recording
179.26officers of the electing body shall certify the results of each election to the county auditor
179.27of each county wherein any part of the district is situated and to the clerk or recorder of
179.28each related governing body and shall make and transmit to each board member elected
179.29a certificate of the board member's election. Upon electing the first board members of a
179.30district, the presiding officer of the electing body shall designate a member to serve as
179.31temporary chair for purposes of initial organization of the board, and the recording
179.32officer of the body shall include written notice thereof to all the board members with
179.33their certificates of election.

179.34    Sec. 17. [442A.15] BOARD ORGANIZATION AND PROCEDURES.
180.1    Subdivision 1. Initial, annual meetings. As soon as practicable after the election
180.2of the first board members of a district, the board shall meet at the call of the temporary
180.3chair to elect officers and take other appropriate action for organization and administration
180.4of the district. Each board shall hold a regular annual meeting at the call of the chair or
180.5otherwise as the board prescribes on or as soon as practicable after the first business day in
180.6January of each year and such other regular and special meetings as the board prescribes.
180.7    Subd. 2. Officers. The officers of each district shall be a chair and a vice-chair,
180.8who shall be members of the board, and a secretary and a treasurer, who may but need
180.9not be members of the board. The board of a new district at its initial meeting or as soon
180.10thereafter as practicable shall elect the officers to serve until the first business day in
180.11January next following. Thereafter, the board shall elect the officers at each regular annual
180.12meeting for terms expiring on the first business day in January next following. Each
180.13officer serves until a successor is elected and has qualified.
180.14    Subd. 3. Meeting place; offices. The board at its initial meeting or as soon
180.15thereafter as practicable shall provide for suitable places for board meetings and for offices
180.16of the district officers and may change the same thereafter as the board deems advisable.
180.17The meeting place and offices may be the same as those of any related governing body,
180.18with the approval of the body. The secretary of the board shall notify the secretary of state,
180.19the county auditor of each county wherein any part of the district is situated, and the clerk
180.20or recorder of each related governing body of the locations and post office addresses of the
180.21meeting place and offices and any changes therein.
180.22    Subd. 4. Budget. At any time before the proceeds of the first tax levy in a district
180.23become available, the district board may prepare a budget comprising an estimate of the
180.24expenses of organizing and administering the district until the proceeds are available, with
180.25a proposal for apportionment of the estimated amount among the related governmental
180.26subdivisions, and may request the governing bodies thereof to advance funds according to
180.27the proposal. The governing bodies may authorize advancement of the requested amounts,
180.28or such part thereof as they respectively deem proper, from any funds available in their
180.29respective treasuries. The board shall include in its first tax levy after receipt of any such
180.30advancements a sufficient sum to cover the same and shall cause the same to be repaid,
180.31without interest, from the proceeds of taxes as soon as received.

180.32    Sec. 18. [442A.16] DISTRICT STATUS AND POWERS.
180.33    Subdivision 1. Status. Every district shall be a public corporation and a governmental
180.34subdivision of the state and shall be deemed to be a municipality or municipal corporation
180.35for the purpose of obtaining federal or state grants or loans or otherwise complying with
181.1any provision of federal or state law or for any other purpose relating to the powers and
181.2purposes of the district for which such status is now or hereafter required by law.
181.3    Subd. 2. Powers and purpose. Every district shall have the powers and purposes
181.4prescribed by this chapter and such others as may now or hereafter be prescribed by law.
181.5No express grant of power or enumeration of powers herein shall be deemed to limit the
181.6generality or scope of any grant of power.
181.7    Subd. 3. Scope of powers and duties. Except as otherwise provided, a power or
181.8duty vested in or imposed upon a district or any of its officers, agents, or employees shall
181.9not be deemed exclusive and shall not supersede or abridge any power or duty vested in or
181.10imposed upon any other agency of the state or any governmental subdivision thereof, but
181.11shall be supplementary thereto.
181.12    Subd. 4. Exercise of power. All the powers of a district shall be exercised by its
181.13board of managers except so far as approval of any action by popular vote or by any other
181.14authority may be expressly required by law.
181.15    Subd. 5. Lawsuits; contracts. A district may sue and be sued and may enter into
181.16any contract necessary or proper for the exercise of its powers or the accomplishment
181.17of its purposes.
181.18    Subd. 6. Property acquisition. A district may acquire by purchase, gift, or
181.19condemnation or may lease or rent any real or personal property within or without the
181.20district that may be necessary for the exercise of district powers or the accomplishment of
181.21district purposes, may hold the property for such purposes, and may lease, rent out, sell, or
181.22otherwise dispose of any property not needed for such purposes.
181.23    Subd. 7. Acceptance of money or property. A district may accept gifts, grants,
181.24or loans of money or other property from the United States, the state, or any person,
181.25corporation, or other entity for district purposes; may enter into any agreement required in
181.26connection therewith; and may hold, use, and dispose of the money or property according
181.27to the terms of the gift, grant, loan, or agreement relating thereto.

181.28    Sec. 19. [442A.17] SPECIFIC PURPOSES AND POWERS.
181.29    Subdivision 1. Pollution prevention. A district may construct, install, improve,
181.30maintain, and operate any system, works, or facilities within or without the district
181.31required to control and prevent pollution of any waters of the state within its territory.
181.32    Subd. 2. Sewage disposal. A district may construct, install, improve, maintain,
181.33and operate any system, works, or facilities within or without the district required to
181.34provide for, regulate, and control the disposal of sewage, industrial waste, and other waste
181.35originating within its territory. The district may require any person upon whose premises
182.1there is any source of sewage, industrial waste, or other waste within the district to
182.2connect the premises with the disposal system, works, or facilities of the district whenever
182.3reasonable opportunity therefor is provided.
182.4    Subd. 3. Garbage, refuse disposal. A district may construct, install, improve,
182.5maintain, and operate any system, works, or facilities within or without the district required
182.6to provide for, regulate, and control the disposal of garbage or refuse originating within the
182.7district. The district may require any person upon whose premises any garbage or refuse is
182.8produced or accumulated to dispose of the garbage or refuse through the system, works, or
182.9facilities of the district whenever reasonable opportunity therefor is provided.
182.10    Subd. 4. Water supply. A district may procure supplies of water necessary for any
182.11purpose under subdivisions 1 to 3 and may construct, install, improve, maintain, and
182.12operate any system, works, or facilities required therefor within or without the district.
182.13    Subd. 5. Roads. (a) To maintain the integrity of and facilitate access to district
182.14systems, works, or facilities, the district may maintain and repair a road by agreement with
182.15the entity that was responsible for the performance of maintenance and repair immediately
182.16prior to the agreement. Maintenance and repair includes but is not limited to providing
182.17lighting, snow removal, and grass mowing.
182.18(b) A district shall establish a taxing subdistrict of benefited property and shall levy
182.19special taxes, pursuant to section 442A.24, subdivision 2, for the purposes of paying the
182.20cost of improvement or maintenance of a road under paragraph (a).
182.21(c) For purposes of this subdivision, a district shall not be construed as a road
182.22authority under chapter 160.
182.23(d) The district and its officers and employees are exempt from liability for any tort
182.24claim for injury to person or property arising from travel on a road maintained by the
182.25district and related to the road's maintenance or condition.

182.26    Sec. 20. [442A.18] DISTRICT PROJECTS AND FACILITIES.
182.27    Subdivision 1. Public property. For the purpose of constructing, improving,
182.28maintaining, or operating any system, works, or facilities designed or used for any purpose
182.29under section 442A.17, a district, its officers, agents, employees, and contractors may enter,
182.30occupy, excavate, and otherwise operate in, upon, under, through, or along any public
182.31highway, including a state trunk highway, or any street, park, or other public grounds so
182.32far as necessary for such work, with the approval of the governing body or other authority
182.33in charge of the public property affected and on such terms as may be agreed upon with the
182.34governing body or authority respecting interference with public use, restoration of previous
182.35conditions, compensation for damages, and other pertinent matters. If an agreement cannot
183.1be reached after reasonable opportunity therefor, the district may acquire the necessary
183.2rights, easements, or other interests in the public property by condemnation, subject to all
183.3applicable provisions of law as in case of taking private property, upon condition that the
183.4court shall determine that there is paramount public necessity for the acquisition.
183.5    Subd. 2. Use of other systems. A district may, upon such terms as may be
183.6agreed upon with the respective governing bodies or authorities concerned, provide for
183.7connecting with or using; lease; or acquire and take over any system, works, or facilities
183.8for any purpose under section 442A.17 belonging to any other governmental subdivision
183.9or other public agency.
183.10    Subd. 3. Use by other governmental bodies. A district may, upon such terms
183.11as may be agreed upon with the respective governing bodies or authorities concerned,
183.12authorize the use by any other governmental subdivision or other public agency of any
183.13system, works, or facilities of the district constructed for any purpose under section
183.14442A.17 so far as the capacity thereof is sufficient beyond the needs of the district. A
183.15district may extend any such system, works, or facilities and permit the use thereof by
183.16persons outside the district, so far as the capacity thereof is sufficient beyond the needs of
183.17the district, upon such terms as the board may prescribe.
183.18    Subd. 4. Joint projects. A district may be a party to a joint cooperative project,
183.19undertaking, or enterprise with one or more other governmental subdivisions or other
183.20public agencies for any purpose under section 442A.17 upon such terms as may be
183.21agreed upon between the governing bodies or authorities concerned. Without limiting the
183.22effect of the foregoing provision or any other provision of this chapter, a district, with
183.23respect to any of said purposes, may act under and be subject to section 471.59, or any
183.24other appropriate law providing for joint or cooperative action between governmental
183.25subdivisions or other public agencies.

183.26    Sec. 21. [442A.19] CONTROL OF SANITARY FACILITIES.
183.27A district may regulate and control the construction, maintenance, and use of privies,
183.28cesspools, septic tanks, toilets, and other facilities and devices for the reception or disposal
183.29of human or animal excreta or other domestic wastes within its territory so far as necessary
183.30to prevent nuisances or pollution or to protect the public health, safety, and welfare
183.31and may prohibit the use of any such facilities or devices not connected with a district
183.32disposal system, works, or facilities whenever reasonable opportunity for such connection
183.33is provided; provided, that the authority of a district under this section does not extend
183.34or apply to the construction, maintenance, operation, or use by any person other than the
184.1district of any disposal system or part thereof within the district under and in accordance
184.2with a valid and existing permit issued by the Minnesota Pollution Control Agency.

184.3    Sec. 22. [442A.20] DISTRICT PROGRAMS, SURVEYS, AND STUDIES.
184.4A district may develop general programs and particular projects within the scope of
184.5its powers and purposes and may make all surveys, studies, and investigations necessary
184.6for the programs and projects.

184.7    Sec. 23. [442A.21] GENERAL AND MUNICIPALITY POWERS.
184.8A district may do and perform all other acts and things necessary or proper for the
184.9effectuation of its powers and the accomplishment of its purposes. Without limiting the
184.10effect of the foregoing provision or any other provision of this chapter, a district, with
184.11respect to each and all of said powers and purposes, shall have like powers as are vested
184.12in municipalities with respect to any similar purposes. The exercise of such powers by a
184.13district and all matters pertaining thereto are governed by the law relating to the exercise
184.14of similar powers by municipalities and matters pertaining thereto, so far as applicable,
184.15with like force and effect, except as otherwise provided.

184.16    Sec. 24. [442A.22] ADVISORY COMMITTEE.
184.17A district board of managers may appoint an advisory committee with membership
184.18and duties as the board prescribes.

184.19    Sec. 25. [442A.23] BOARD POWERS.
184.20    Subdivision 1. Generally. The board of managers of every district shall have charge
184.21and control of all the funds, property, and affairs of the district. With respect thereto, the
184.22board has the same powers and duties as are provided by law for a municipality with respect
184.23to similar municipal matters, except as otherwise provided. Except as otherwise provided,
184.24the chair, vice-chair, secretary, and treasurer of the district have the same powers and duties,
184.25respectively, as the mayor, acting mayor, clerk, and treasurer of a municipality. Except as
184.26otherwise provided, the exercise of the powers and the performance of the duties of the
184.27board and officers of the district and all other activities, transactions, and procedures of the
184.28district or any of its officers, agents, or employees, respectively, are governed by the law
184.29relating to similar matters in a municipality, so far as applicable, with like force and effect.
184.30    Subd. 2. Regulation of district. The board may enact ordinances, prescribe
184.31regulations, adopt resolutions, and take other appropriate action relating to any matter
184.32within the powers and purposes of the district and may do and perform all other acts and
185.1things necessary or proper for the effectuation of said powers and the accomplishment
185.2of said purposes. The board may provide that violation of a district ordinance is a penal
185.3offense and may prescribe penalties for violations, not exceeding those prescribed by
185.4law for violation of municipal ordinances.
185.5    Subd. 3. Arrest; prosecution. (a) Violations of district ordinances may be
185.6prosecuted before any court having jurisdiction of misdemeanors. Any peace officer may
185.7make arrests for violations committed anywhere within the district in the same manner as
185.8for violations of city ordinances or for statutory misdemeanors.
185.9(b) All fines collected shall be deposited in the treasury of the district.

185.10    Sec. 26. [442A.24] TAX LEVIES, ASSESSMENTS, AND SERVICE CHARGES.
185.11    Subdivision 1. Tax levies. The board may levy taxes for any district purpose on all
185.12property taxable within the district.
185.13    Subd. 2. Particular area. In the case where a particular area within the district,
185.14but not the entire district, is benefited by a system, works, or facilities of the district,
185.15the board, after holding a public hearing as provided by law for levying assessments on
185.16benefited property, shall by ordinance establish such area as a taxing subdistrict, to be
185.17designated by number, and shall levy special taxes on all the taxable property therein, to be
185.18accounted for separately and used only for the purpose of paying the cost of construction,
185.19improvement, acquisition, maintenance, or operation of such system, works, or facilities,
185.20or paying the principal and interest on bonds issued to provide funds therefor and expenses
185.21incident thereto. The hearing may be held jointly with a hearing for the purpose of levying
185.22assessments on benefited property within the proposed taxing subdistrict.
185.23    Subd. 3. Benefited property. The board shall levy assessments on benefited property
185.24to provide funds for payment of the cost of construction, improvement, or acquisition of
185.25any system, works, or facilities designed or used for any district purpose or for payment of
185.26the principal of and interest on any bonds issued therefor and expenses incident thereto.
185.27    Subd. 4. Service charges. The board shall prescribe service, use, or rental charges
185.28for persons or premises connecting with or making use of any system, works, or facilities
185.29of the district; prescribe the method of payment and collection of the charges; and provide
185.30for the collection thereof for the district by any related governmental subdivision or
185.31other public agency on such terms as may be agreed upon with the governing body or
185.32other authority thereof.

185.33    Sec. 27. [442A.25] BORROWING POWERS; BONDS.
186.1    Subdivision 1. Borrowing power. The board may authorize the borrowing of
186.2money for any district purpose and provide for the repayment thereof, subject to chapter
186.3475. The taxes initially levied by any district according to section 475.61 for the payment
186.4of district bonds, upon property within each municipality included in the district, shall be
186.5included in computing the levy of the municipality.
186.6    Subd. 2. Bond issuance. The board may authorize the issuance of bonds or
186.7obligations of the district to provide funds for the construction, improvement, or
186.8acquisition of any system, works, or facilities for any district purpose or for refunding
186.9any prior bonds or obligations issued for any such purpose and may pledge the full faith
186.10and credit of the district; the proceeds of tax levies or assessments; service, use, or
186.11rental charges; or any combination thereof to the payment of such bonds or obligations
186.12and interest thereon or expenses incident thereto. An election or vote of the people of
186.13the district is required to authorize the issuance of any bonds or obligations. Except as
186.14otherwise provided in this chapter, the forms and procedures for issuing and selling bonds
186.15and provisions for payment thereof must comply with chapter 475.

186.16    Sec. 28. [442A.26] FUNDS; DISTRICT TREASURY.
186.17The proceeds of all tax levies, assessments, service, use, or rental charges, and
186.18other income of the district must be deposited in the district treasury and must be held
186.19and disposed of as the board may direct for district purposes, subject to any pledges or
186.20dedications made by the board for the use of particular funds for the payment of bonds,
186.21interest thereon, or expenses incident thereto or for other specific purposes.

186.22    Sec. 29. [442A.27] EFFECT OF DISTRICT ORDINANCES AND FACILITIES.
186.23In any case where an ordinance is enacted or a regulation adopted by a district
186.24board relating to the same subject matter and applicable in the same area as an existing
186.25ordinance or regulation of a related governmental subdivision for the district, the district
186.26ordinance or regulation, to the extent of its application, supersedes the ordinance or
186.27regulation of the related governmental subdivision. In any case where an area within a
186.28district is served for any district purpose by a system, works, or facilities of the district,
186.29no system, works, or facilities shall be constructed, maintained, or operated for the same
186.30purpose in the same area by any related governmental subdivision or other public agency
186.31except as approved by the district board.

186.32    Sec. 30. [442A.28] APPLICATION.
187.1This chapter does not abridge or supersede any authority of the Minnesota Pollution
187.2Control Agency or the commissioner of health, but is subject and supplementary thereto.
187.3Districts and members of district boards are subject to the authority of the Minnesota
187.4Pollution Control Agency and have no power or authority to abate or control pollution that
187.5is permitted by and in accord with any classification of waters, standards of water quality,
187.6or permit established, fixed, or issued by the Minnesota Pollution Control Agency.

187.7    Sec. 31. [442A.29] CHIEF ADMINISTRATIVE LAW JUDGE'S POWERS.
187.8    Subdivision 1. Alternative dispute resolution. (a) Notwithstanding sections
187.9442A.01 to 442A.28, before assigning a matter to an administrative law judge for hearing,
187.10the chief administrative law judge, upon consultation with affected parties and considering
187.11the procedures and principles established in sections 442A.01 to 442A.28, may require
187.12that disputes over proposed sanitary district creations, attachments, detachments, or
187.13dissolutions be addressed in whole or in part by means of alternative dispute resolution
187.14processes in place of, or in connection with, hearings that would otherwise be required
187.15under sections 442A.01 to 442A.28, including those provided in chapter 14.
187.16(b) In all proceedings, the chief administrative law judge has the authority and
187.17responsibility to conduct hearings and issue final orders related to the hearings under
187.18sections 442A.01 to 442A.28.
187.19    Subd. 2. Cost of proceedings. (a) The parties to any matter directed to alternative
187.20dispute resolution under subdivision 1 must pay the costs of the alternative dispute
187.21resolution process or hearing in the proportions that the parties agree to.
187.22(b) Notwithstanding section 14.53 or other law, the Office of Administrative
187.23Hearings is not liable for the costs.
187.24(c) If the parties do not agree to a division of the costs before the commencement of
187.25mediation, arbitration, or hearing, the costs must be allocated on an equitable basis by
187.26the mediator, arbitrator, or chief administrative law judge.
187.27(d) The chief administrative law judge may contract with the parties to a matter for
187.28the purpose of providing administrative law judges and reporters for an administrative
187.29proceeding or alternative dispute resolution.
187.30(e) The chief administrative law judge shall assess the cost of services rendered by
187.31the Office of Administrative Hearings as provided by section 14.53.
187.32    Subd. 3. Parties. In this section, "party" means:
187.33(1) a property owner, group of property owners, sanitary district, municipality, or
187.34township that files an initiating document or timely objection under this chapter;
188.1(2) the sanitary district, municipality, or township within which the subject area
188.2is located;
188.3(3) a municipality abutting the subject area; and
188.4(4) any other person, group of persons, or governmental agency residing in, owning
188.5property in, or exercising jurisdiction over the subject area that submits a timely request
188.6and is determined by the presiding administrative law judge to have a direct legal interest
188.7that will be affected by the outcome of the proceeding.
188.8    Subd. 4. Effectuation of agreements. Matters resolved or agreed to by the parties
188.9as a result of an alternative dispute resolution process, or otherwise, may be incorporated
188.10into one or more stipulations for purposes of further proceedings according to the
188.11applicable procedures and statutory criteria of this chapter.
188.12    Subd. 5. Limitations on authority. Nothing in this section shall be construed to
188.13permit a sanitary district, municipality, town, or other political subdivision to take, or
188.14agree to take, an action that is not otherwise authorized by this chapter.

188.15    Sec. 32. REPEALER.
188.16Minnesota Statutes 2012, sections 115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, and 10;
188.17115.19; 115.20; 115.21; 115.22; 115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29;
188.18115.30; 115.31; 115.32; 115.33; 115.34; 115.35; 115.36; and 115.37, are repealed.

188.19    Sec. 33. EFFECTIVE DATE.
188.20Unless otherwise provided in this article, sections 1 to 32 are effective August 1, 2013.

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