SF 69

2nd Engrossment - 84th Legislature, 2005 1st Special Session (2005 - 2005) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; appropriating money for
agricultural, environmental, natural resources, and
economic development purposes; establishing and
modifying certain programs; providing for regulation
of certain activities and practices; providing for
accounts, assessments, and fees; amending Minnesota
Statutes 2004, sections 3.303, by adding a
subdivision; 16A.125, subdivision 5; 17.03,
subdivision 13; 17.117, subdivision 11, by adding a
subdivision; 17.452, by adding a subdivision; 17.982,
subdivision 1; 17.983, subdivisions 1, 3; 17B.03,
subdivision 1; 18B.05, subdivision 1; 18B.08,
subdivision 4; 18B.26, subdivision 3; 18B.31,
subdivision 5; 18B.315, subdivision 6; 18B.32,
subdivision 6; 18B.33, subdivision 7; 18B.34,
subdivision 5; 18C.141, subdivisions 1, 3, 5; 18C.425,
subdivision 6; 18E.03, subdivision 2; 18G.03,
subdivision 1; 18G.10, subdivisions 5, 7; 18G.16,
subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 14; 18H.02,
subdivisions 21, 22, 23, 32, 34, by adding a
subdivision; 18H.05; 18H.06; 18H.07, subdivisions 1,
2, 3; 18H.09; 18H.13, subdivision 1; 18H.15; 18H.18,
subdivision 1; 19.64, subdivision 1; 25.341,
subdivision 2; 25.39, subdivisions 1, 4; 31.94; 35.02,
subdivision 1; 35.03; 35.05; 35.155; 38.01; 38.16;
41A.09, subdivisions 2a, 3a, by adding subdivisions;
41B.046, subdivision 5; 41B.049, subdivisions 2, 4;
60A.14, subdivision 1; 60K.55, subdivision 2; 72A.20,
by adding a subdivision; 72B.04, subdivision 10;
82B.05, subdivisions 1, 5; 82B.09, subdivision 1;
84.027, subdivisions 12, 15; 84.0274, by adding
subdivisions; 84.0911, subdivision 2; 84.631; 84.775,
subdivision 1; 84.780; 84.788, subdivision 3, by
adding a subdivision; 84.789, by adding a subdivision;
84.791, subdivisions 1, 2; 84.798, subdivision 1, by
adding a subdivision; 84.82, subdivision 2, by adding
a subdivision; 84.8205, subdivisions 1, 3, 4, 6;
84.83, subdivisions 3, 4; 84.86, subdivision 1;
84.922, subdivision 2, by adding a subdivision;
84.925, subdivision 1, by adding a subdivision;
84.9256, subdivision 1, as amended; 84.9257; 84.926;
84.928, subdivisions 1, 2; 84D.03, subdivision 4;
85.015, subdivision 5; 85.053, subdivisions 1, 2;
85.054, subdivision 1, by adding a subdivision;
85.055, subdivision 2, by adding a subdivision; 85.42;
85.43; 86B.415, subdivisions 1, 2, 3, 4, 5, 6, by
adding a subdivision; 88.17, subdivision 1, by adding
subdivisions; 88.6435, subdivision 4; 89.039,
subdivision 1; 89.19, subdivision 2; 89.36,
subdivision 2; 89.37, subdivision 4; 90.195; 92.03,
subdivision 4; 94.342, subdivisions 1, 3, 4, 5;
94.343, subdivisions 1, 3, 7, 8, 10, by adding
subdivisions; 94.344, subdivisions 1, 3, 5, 8, 10, by
adding a subdivision; 97A.055, subdivision 4b;
97A.061, subdivision 1; 97A.075, subdivision 3;
97A.135, subdivision 2a; 97A.4742, subdivision 4;
97A.475, subdivision 3; 97A.482; 97A.485, subdivisions
6, 7; 97A.551, by adding a subdivision; 97B.005,
subdivision 1, as amended; 97B.015, subdivision 7;
97B.020; 97B.025, as amended; 97B.601, subdivision 3;
97B.605; 97B.625, as amended; 97B.641; 97B.655,
subdivision 1; 97C.085; 103B.101, subdivision 9;
103E.081, by adding subdivisions; 103F.535,
subdivision 1; 103G.271, subdivision 6; 103G.301,
subdivision 2; 103G.615, subdivision 2; 103I.681,
subdivision 11; 115.06, subdivision 4; 115.55,
subdivision 5; 115.551; 115A.072, subdivision 1;
115A.12; 115A.554; 115A.929; 115A.9565; 115B.48,
subdivision 8; 115C.07, subdivision 3; 115C.09,
subdivisions 3h, 3j; 115C.13; 115D.04, subdivision 3;
116.07, subdivision 7a; 116C.779, subdivision 2;
116J.551, subdivision 1; 116J.571; 116J.572; 116J.574;
116J.575, as amended; 116J.63, subdivision 2;
116J.8731, subdivision 5; 116J.8747, subdivision 2;
116J.994, subdivisions 7, 9; 116L.03, subdivision 2;
116L.05, by adding a subdivision; 116L.20,
subdivisions 1, 2; 116L.666, subdivision 4; 116O.09,
subdivision 1a; 116P.05, subdivision 2; 120A.40;
129D.02, subdivision 3; 160.232; 161.1419, subdivision
2, by adding a subdivision; 168.1296, subdivision 1;
168.27, by adding a subdivision; 169.733; 169.824,
subdivision 2; 169.85, subdivisions 1, 6; 169.87,
subdivision 4; 169A.63, subdivision 6; 174.52,
subdivision 5; 176.136, subdivision 1a; 183.41, by
adding a subdivision; 183.411, subdivisions 2a, 3;
183.42; 183.44, subdivision 1; 183.51, subdivision 2,
by adding a subdivision; 183.545; 183.57; 216B.2424,
subdivision 1a, as added; 216C.41, subdivisions 2, 5,
5a; 223.17, subdivisions 3, 6; 231.16; 232.22,
subdivision 3; 236.02, subdivision 4; 237.11; 237.295,
subdivisions 1, 2; 237.701, subdivision 1; 239.011,
subdivision 2; 239.05, subdivision 10b, by adding a
subdivision; 239.09; 239.101, subdivision 3; 239.75,
subdivisions 1, 5; 239.761; 239.77, by adding a
subdivision; 239.79, subdivision 4; 239.791,
subdivisions 1, 7, 8, 15; 239.792; 268.19, subdivision
1; 282.04, subdivision 1; 282.08, as amended; 282.38,
subdivision 1; 296A.01, subdivisions 2, 7, 8, 14, 19,
20, 22, 23, 24, 25, 26, 28; 296A.18, subdivision 2;
297H.13, subdivision 2; 298.22, by adding a
subdivision; 298.28, subdivisions 9b, 10; 298.2961, by
adding a subdivision; 325E.311, subdivision 6;
326.975, subdivision 1; 327.23, subdivision 2; 345.47,
subdivisions 3, 3a; 353.657, subdivision 1; 357.021,
subdivisions 1a, 2; 373.40, subdivisions 1, 3; 394.25,
subdivision 3c; 462.355, subdivision 4, as amended;
462.357, subdivision 1e, by adding a subdivision;
462A.05, subdivision 3a; 462A.33, subdivision 2;
469.050, subdivision 5; 469.1082, subdivision 1;
469.310, subdivision 11; 469.319, subdivision 1, by
adding a subdivision; 469.320, subdivision 3; 469.330,
subdivision 11; 469.340, subdivision 1; 471.999;
473.197, subdivision 4; 517.08, subdivisions 1b, 1c;
609.849, as added; Laws 1998, chapter 389, article 16,
section 31, subdivision 4, as amended; Laws 1999,
chapter 224, section 7, as amended; Laws 2003, chapter
128, article 1, section 9, subdivision 6; Laws 2003,
chapter 128, article 1, section 156; Laws 2003,
chapter 128, article 1, section 167, subdivision 1;
Laws 2003, chapter 128, article 1, section 172; Laws
2005, chapter 97, article 13, section 1, subdivision
3; Laws 2005, chapter 97, article 13, section 2,
subdivision 1; proposing coding for new law in
Minnesota Statutes, chapters 16C; 25; 35; 41B; 45;
59B; 84; 86B; 92; 93; 97C; 103F; 116L; 116P; 156; 169;
181; 237; 290; 325F; 354B; 473; repealing Minnesota
Statutes 2004, sections 17.451; 17.452, subdivisions
6, 6a, 7, 10, 11, 12, 13, 13a, 14, 15, 16; 17.983,
subdivision 2; 18B.065, subdivision 5; 18H.02,
subdivisions 15, 19; 19.64, subdivision 4a; 35.0661,
subdivision 4; 41B.046, subdivision 3; 45.0295;
84.901; 94.343, subdivision 6; 94.344, subdivision 6;
94.348; 94.349; 115A.03, subdivisions 8a, 22a;
115A.055, subdivision 1; 115D.03, subdivision 4;
116J.573; 116J.58, subdivision 3; 116L.05, subdivision
4; 178.12; 239.05, subdivisions 6a, 6b; 462C.15;
473.156; 473.197, subdivisions 1, 2, 3, 5; 473.801,
subdivision 6; Laws 1999, chapter 125, section 4, as
amended.

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

ARTICLE 1

AGRICULTURE AND RURAL DEVELOPMENT

Section 1. new text begin AGRICULTURE AND RURAL DEVELOPMENT
APPROPRIATIONS.
new text end

The sums shown in the columns marked "APPROPRIATIONS" are
appropriated from the general fund, or another named fund, to
the agencies and for the purposes specified in this act, to be
available for the fiscal years indicated for each purpose. The
figures "2006" and "2007," where used in this act, mean that the
appropriation or appropriations listed under them are available
for the fiscal year ending June 30, 2006, or June 30, 2007,
respectively. The term "the first year" means the year ending
June 30, 2006, and the term "the second year" means the year
ending June 30, 2007.
SUMMARY BY FUND

2006 2007 TOTAL

General $ 44,648,000 $ 41,804,000 $ 86,452,000

Remediation 388,000 388,000 776,000

TOTAL $ 45,036,000 $ 42,192,000 $ 87,228,000

APPROPRIATIONS
Available for the Year
Ending June 30
2006 2007

Sec. 2. DEPARTMENT OF AGRICULTURE

Subdivision 1.

Total
Appropriation 40,177,000 37,331,000

Summary by Fund

General 39,789,000 36,943,000

Remediation 388,000 388,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Protection Services

10,665,000 10,666,000

Summary by Fund

General 10,277,000 10,278,000

Remediation 388,000 388,000

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

The balance in the waste pesticide
account in the agricultural fund is
canceled to the pesticide regulatory
account in the agricultural fund and
the waste pesticide account is
abolished.

$150,000 the first year and $150,000
the second year are from the
agricultural fund and must be spent for
increased monitoring of pesticides in
groundwater and surface waters
throughout the state. This amount must
be used primarily for sample collection
and laboratory analytical costs and is
in addition to other appropriations and
funding for the water monitoring
program.

Subd. 3.

Agricultural Marketing
and Development 4,085,000 3,865,000

$71,000 the first year and $71,000 the
second year are for transfer to the
Minnesota grown matching account and
may be used as grants for Minnesota
grown promotion under Minnesota
Statutes, section 17.109. Grants may
be made for one year. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under
contract on or before June 30, 2007,
for Minnesota grown grants in this
subdivision are available until June
30, 2009.

$80,000 the first year and $80,000 the
second year are for grants to farmers
for demonstration projects involving
sustainable agriculture as authorized
in Minnesota Statutes, section 17.116.
Of the amount for grants, up to $20,000
may be used for dissemination of
information about the demonstration
projects. Notwithstanding Minnesota
Statutes, section 16A.28, the
appropriations encumbered under
contract on or before June 30, 2007,
for sustainable agriculture grants in
this subdivision are available until
June 30, 2009.

$100,000 the first year and $100,000
the second year are to provide training
and technical assistance to county and
town officials relating to livestock
siting issues and local zoning and land
use planning including a checklist
template that would clarify the
federal, state, and local government
requirements for consideration of an
animal agriculture modernization or
expansion project. In developing the
training and technical assistance
program, the commissioner may seek
assistance from the local planning
assistance center of the Department of
Administration and shall seek guidance,
advice, and support of livestock
producer organizations, general
agricultural organizations, local
government associations, academic
institutions, other government
agencies, and others with expertise in
land use and agriculture.

$220,000 the first year is to contract
with the University of Minnesota for
further research and development of
livestock odor and air quality
management. This is a onetime
appropriation.

The commissioner of agriculture, in
consultation with the commissioner of
transportation, shall conduct an
economic impact study of a rail
container load-out facility located in
the west-central area of Minnesota.
The study must include benefits of a
facility to the region and to the state
transportation system. By January 15,
2006, the commissioner shall report to
the governor and the agriculture policy
committees of the senate and house on
the findings of the study.

Subd. 4.

Value-Added Agricultural Products

18,745,000 15,268,000

$18,145,000 the first year and
$15,168,000 the second year are for
ethanol producer payments under
Minnesota Statutes, section 41A.09.
Payments for eligible ethanol
production in fiscal years 2006 and
2007 shall be disbursed at the rate of
$0.13 per gallon. If the total amount
for which all producers are eligible in
a quarter exceeds the amount available
for payments, the commissioner shall
make payments on a pro rata basis. If
the appropriation exceeds the total
amount for which all producers are
eligible in a fiscal year for scheduled
payments and for deficiencies in
payments during previous fiscal years,
the balance in the appropriation is
available to the commissioner for
value-added agricultural programs
including the value-added agricultural
product processing and marketing grant
program under Minnesota Statutes,
section 17.101, subdivision 5. The
appropriation remains available until
spent.

$500,000 in the first year is for
grants to gasoline service station
owners who, after the effective date of
this section, install pumps in this
state for dispensing E85 gasoline. The
commissioner may reimburse owners of
gasoline service stations for up to 50
percent of the total cost of installing
an E85 pump, including the tank and any
related components, up to a maximum of
$15,000 per E85 pump. The commissioner
shall grant priority for E85 pumps
installed in areas of the state where
gasoline service stations with E85
pumps are not reasonably available to
the general public. This appropriation
is available until spent.

$100,000 the first year and $100,000
the second year are for ethanol
combustion efficiency grants under
Minnesota Statutes, section 41A.09,
subdivision 9.

Subd. 5.

Administration and Financial Assistance

6,682,000 7,532,000

$1,005,000 the first year and
$1,005,000 the second year are for
continuation of the dairy development
and profitability enhancement and dairy
business planning grant programs
established under Laws 1997, chapter
216, section 7, subdivision 2, and Laws
2001, First Special Session chapter 2,
section 9, subdivision 2 and to
administer a dairy investment tax
credit program. The commissioner may
allocate the available sums among
permissible activities, including
efforts to improve the quality of milk
produced in the state in the
proportions that the commissioner deems
most beneficial to Minnesota's dairy
farmers. The commissioner must submit
a work plan detailing plans for
expenditures under this program to the
chairs of the house and senate
committees dealing with agricultural
policy and budget on or before the
start of each fiscal year. If
significant changes are made to the
plans in the course of the year, the
commissioner must notify the chairs.

$50,000 the first year and $50,000 the
second year are for the Northern Crops
Institute. These appropriations may be
spent to purchase equipment.

$19,000 the first year and $19,000 the
second year are for a grant to the
Minnesota Livestock Breeders
Association.

$2,000 the first year and $2,000 the
second year are for family farm
security interest payment adjustments.
If the appropriation for either year is
insufficient, the appropriation for the
other year is available for it. No new
loans may be approved in fiscal year
2006 or 2007.

Aid payments to county and district
agricultural societies and associations
under Minnesota Statutes, section
38.02, subdivision 1, shall be
disbursed not later than July 15.
These payments are the amount of aid
owed by the state for an annual fair
held in the previous calendar year.

$65,000 the first year and $65,000 the
second year are for annual grants to
the Northern Minnesota Forage-Turf Seed
Advisory Committee for basic and
applied research on the improved
production of forage and turf seed
related to new and improved varieties.
The grant recipient may subcontract
with a qualified third party for some
or all of the basic and applied
research.

$150,000 is for a grant to Second
Harvest Heartland on behalf of
Minnesota's six Second Harvest food
banks for the purchase of milk for
distribution to Minnesota's food
shelves and other charitable
organizations that are eligible to
receive food from the food banks. Milk
purchased under the grants must be
acquired from Minnesota milk processors
and based on low-cost bids. The milk
must be allocated to each Second
Harvest food bank serving Minnesota
according to the formula used in the
distribution of United States
Department of Agriculture commodities
under The Emergency Food Assistance
Program (TEFAP). Second Harvest
Heartland must submit quarterly reports
to the commissioner on forms prescribed
by the commissioner. The reports must
include, but are not limited to,
information on the expenditure of
funds, the amount of milk purchased,
and the organizations to which the milk
was distributed. Second Harvest
Heartland may enter into contracts or
agreements with food banks for shared
funding or reimbursement of the direct
purchase of milk. Each food bank
receiving money from this appropriation
may use up to two percent of the grant
for administrative expenses. This is a
onetime appropriation.

$100,000 the first year and $100,000
the second year are for transfer to the
Board of Trustees of the Minnesota
State Colleges and Universities for
mental health counseling support to
farm families and business operators
through farm business management
programs at Central Lakes College and
Ridgewater College.

$17,000 the first year and $18,000 the
second year are for grants to the
Minnesota Horticultural Society.

Sec. 3. BOARD OF ANIMAL
HEALTH 3,259,000 3,261,000

$200,000 the first year and $200,000
the second year are for a program to
control paratuberculosis ("Johne's
disease") in domestic bovine herds.

$80,000 the first year and $80,000 the
second year are for a program to
investigate the avian pneumovirus
disease and to identify the infected
flocks. This appropriation must be
matched on a dollar-for-dollar or
in-kind basis with nonstate sources and
is in addition to money currently
designated for turkey disease
research. Costs of blood sample
collection, handling, and
transportation, in addition to costs
associated with early diagnosis tests
and the expenses of vaccine research
trials, may be credited to the match.

$400,000 the first year and $400,000
the second year are for the purposes of
cervidae inspection as authorized in
Minnesota Statutes, section 17.452.

$300,000 the first year and $300,000
the second year are for grants to the
Veterinary Diagnostic Laboratory at the
University of Minnesota to expand
animal disease surveillance and to
protect animal agriculture and public
health. This appropriation is
available until June 30, 2007. This is
a onetime appropriation.

Sec. 4.

AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE 1,600,000 1,600,000

Sec. 5. FUND TRANSFER

By June 30, 2007, the commissioner of
the Pollution Control Agency shall
transfer $600,000 from the unreserved
balance of the environmental fund to
the commissioner of finance for
cancellation to the general fund.

Sec. 6.

new text begin [16C.137] MINIMIZING ENERGY USE; RENEWABLE
FUELS.
new text end

new text begin Subdivision 1. new text end

new text begin Goals and actions. new text end

new text begin (a) Using 2005 as a
baseline, the state of Minnesota shall reduce the use of
gasoline by on-road vehicles owned by state departments by 25
percent by 2010 and by 50 percent by 2015, and the use of
petroleum-based diesel fuel in diesel-fueled vehicles by ten
percent by 2010 and 25 percent by 2015.
new text end

new text begin (b) To meet the goals established in paragraph (a), each
state department must, whenever legally, technically, and
economically feasible, subject to the specific needs of the
department and responsible management of agency finances:
new text end

new text begin (1) ensure that all new on-road vehicles purchased,
excluding emergency and law enforcement vehicles:
new text end

new text begin (i) use "cleaner fuels" as that term is defined in section
16C.135, subdivision 1, clauses (1), (3), and (4); or
new text end

new text begin (ii) have fuel efficiency ratings that exceed 30 miles per
gallon for city usage or 35 miles per gallon for highway usage,
including but not limited to hybrid electric cars and
hydrogen-powered vehicles;
new text end

new text begin (2) increase its use of renewable transportation fuels,
including ethanol, biodiesel, and hydrogen from agricultural
products; and
new text end

new text begin (3) increase its use of Web-based Internet applications and
other electronic information technologies to enhance the access
to and delivery of government information and services to the
public, and reduce the reliance on the department's fleet for
the delivery of such information and services.
new text end

new text begin Subd. 2. new text end

new text begin Smartfleet committee. new text end

new text begin (a) The commissioner of
administration, or the commissioner's designee, shall chair a
SmartFleet Committee consisting of representatives designated by
the commissioners of the Pollution Control Agency, the
Departments of Agriculture and Commerce, and other state
departments that wish to participate. To ensure effective and
efficient state participation, the SmartFleet Committee must
assist state departments in implementing the requirements of
this section, including providing information, guidance, sample
policies and procedures, and technical and planning assistance.
new text end

new text begin (b) The SmartFleet Committee must evaluate the goals and
directives established in this section by December 2006 and
periodically thereafter. The committee may make recommendations
to the governor and appropriate committees of the legislature
for new or adjusted goals and directives, in light of the
progress the state has made implementing this section, and of
the availability of new or improved technologies.
new text end

new text begin (c) For the systematic and efficient monitoring of progress
in implementing this section by the SmartFleet Committee, the
Department of Administration shall implement a fleet reporting
and information management system. Each department will use
this management system to demonstrate its progress in complying
with this section.
new text end

new text begin Subd. 3. new text end

new text begin Exclusion. new text end

new text begin Petroleum-based diesel fuel used in
a vehicle which a department has retrofit to use ultra low
sulfur diesel fuel and to add additional emissions control
technologies is excluded when evaluating progress toward the
reduction goals established in subdivision 1. This exclusion
applies only to vehicles purchased before the model year in
which the federal Environmental Protection Agency's new clean
diesel emission reduction rules take effect.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2004, section 17.03,
subdivision 13, is amended to read:

Subd. 13.

Semiannual reports.

(a) deleted text begin By October 15 and
April 15 of each year, deleted text end The commissioner shall submit to the
legislative committees having jurisdiction over appropriations
from the agricultural fund in section 16A.531 deleted text begin a report deleted text end new text begin reports
new text end on the amount of revenue raised in each fee account within the
fund, the expenditures from each account, and the purposes for
which the expenditures were made. new text begin The reports must be issued in
February and November each year, to coincide with the forecasts
of revenue and expenditures prepared under section 16A.103.
new text end

(b) The report delivered deleted text begin on October 15 deleted text end new text begin in February new text end of each
year must include the commissioner's recommendations, if any,
for changes in statutes relating to the fee accounts of the
agricultural fund.

Sec. 8.

Minnesota Statutes 2004, section 17.117, is
amended by adding a subdivision to read:

new text begin Subd. 5b. new text end

new text begin Application fee. new text end

new text begin The commissioner may impose a
nonrefundable application fee of $50 for each loan issued under
the program. The fees must be credited to the agricultural best
management practices administration account, which is hereby
established in the agricultural fund. Interest earned in the
account accrues to the account. Money in the account and
interest earned in the accounts established in the agricultural
fund under subdivision 5a are appropriated to the commissioner
for administrative expenses of the program.
new text end

Sec. 9.

Minnesota Statutes 2004, section 17.117,
subdivision 11, is amended to read:

Subd. 11.

Loans issued to borrower.

(a) Local lenders
may issue loans only for projects that are approved and
certified by the local government unit as meeting priority needs
identified in a comprehensive water management plan or other
local planning documents, are in compliance with accepted
practices, standards, specifications, or criteria, and are
eligible for financing under Environmental Protection Agency or
other applicable guidelines.

(b) The local lender may use any additional criteria
considered necessary to determine the eligibility of borrowers
for loans.

(c) Local lenders shall set the terms and conditions of
loans to borrowers, except that:

(1) no loan to a borrower may exceed $50,000;

(2) no loan for a project may exceed $50,000; and

(3) no borrower shall, at any time, have multiple loans
from this program with a total outstanding loan balance of more
than $50,000.

(d) The maximum term length for conservation tillage deleted text begin and
individual sewage treatment system deleted text end projects is five years. The
maximum term length for other projects in this paragraph is ten
years.

(e) new text begin Notwithstanding paragraph (c), a local lender may issue
a loan of up to $100,000 for a community sewage treatment system
serving two or more households.
new text end

new text begin (f) new text end Fees charged at the time of closing must:

(1) be in compliance with normal and customary practices of
the local lender;

(2) be in accordance with published fee schedules issued by
the local lender;

(3) not be based on participation program; and

(4) be consistent with fees charged other similar types of
loans offered by the local lender.

deleted text begin (f) deleted text end new text begin (g) new text end The interest rate assessed to an outstanding loan
balance by the local lender must not exceed three percent per
year.

Sec. 10.

Minnesota Statutes 2004, section 17.452, is
amended by adding a subdivision to read:

new text begin Subd. 5a. new text end

new text begin Other applicable definitions. new text end

new text begin The definitions
in section 35.153 apply to this section.
new text end

Sec. 11.

Minnesota Statutes 2004, section 17.982,
subdivision 1, is amended to read:

Subdivision 1.

Criminal penalties.

A person who violates
new text begin a provision of new text end chapter new text begin 28A, new text end 29, 31, 31A, 31B, or 34 for which a
penalty has not been prescribed is guilty of a misdemeanor.

Sec. 12.

Minnesota Statutes 2004, section 17.983,
subdivision 1, is amended to read:

Subdivision 1.

Administrative penalties; citation.

If a
person has violated new text begin a provision of new text end chapter new text begin 28A, new text end 29, 31, 31A,
31B, 32, or 34, the commissioner may issue a written citation to
the person by personal service or by certified mail. The
citation deleted text begin shall deleted text end new text begin must new text end describe the nature of the violation and the
statute or rule alleged to have been violated; state the time
for correction new text begin , if applicable new text end ; and the amount of any proposed
fine. The citation must advise the person to notify the
commissioner in writing within 30 days if the person wishes to
appeal the citation. If the person fails to appeal the
citation, the citation is the final order and not subject to
further review.

Sec. 13.

Minnesota Statutes 2004, section 17.983,
subdivision 3, is amended to read:

Subd. 3.

Contested case.

If a person appeals a citation
or a penalty assessment within the time limits in
deleted text begin subdivisions deleted text end new text begin subdivision new text end 1 deleted text begin and 2 deleted text end , the commissioner deleted text begin , within 40
days after receiving the appeal, deleted text end shall initiate a contested
proceeding under chapter 14. The report of the administrative
law judge is the final decision of the commissioner of
agriculture.

Sec. 14.

Minnesota Statutes 2004, section 17B.03,
subdivision 1, is amended to read:

Subdivision 1.

Commissioner's powers.

The commissioner
of agriculture shall exercise general supervision over the
inspection, grading, weighing, sampling, and analysis of grain
subject to the provisions of the United States Grain Standards
Act of 1976 and the rules promulgated thereunder by the United
States Department of Agriculture. This activity may take place
within or outside the state of Minnesota. new text begin Scale testing must be
performed at export locations or, upon request from and with the
consent of the delegated authority, at domestic locations. Fees
for the testing of scales and weighing equipment shall be fixed
by the commissioner and must be uniform with those charged by
the Division of Weights and Measures of the Department of
Commerce.
new text end

Sec. 15.

Minnesota Statutes 2004, section 18B.05,
subdivision 1, is amended to read:

Subdivision 1.

Establishment.

A pesticide regulatory
account is established in the agricultural fund. Fees new text begin ,
assessments, new text end and penalties collected under this chapter must be
deposited in the agricultural fund and credited to the pesticide
regulatory account. Money in the account, including interest,
is appropriated to the commissioner for the administration and
enforcement of this chapter.

Sec. 16.

Minnesota Statutes 2004, section 18B.08,
subdivision 4, is amended to read:

Subd. 4.

Application fee.

A person deleted text begin initially deleted text end applying
for a chemigation permit must pay a nonrefundable application
fee of deleted text begin $50 deleted text end new text begin $250 new text end . A person who holds a fertilizer chemigation
permit under section 18C.205, is exempt from the fee in this
subdivision.

Sec. 17.

Minnesota Statutes 2004, section 18B.26,
subdivision 3, is amended to read:

Subd. 3.

Application fee.

(a) A registrant shall pay an
annual application fee for each pesticide to be registered, and
this fee is set at deleted text begin one-tenth of one percent for calendar year
1990, at one-fifth of one percent for calendar year 1991, and at
two-fifths of one deleted text end new text begin 0.4 new text end percent deleted text begin for calendar year 1992 and
thereafter deleted text end of annual gross sales within the state and annual
gross sales of pesticides used in the state, with a minimum
nonrefundable fee of $250. The registrant shall determine when
and which pesticides are sold or used in this state. The
registrant shall secure sufficient sales information of
pesticides distributed into this state from distributors and
dealers, regardless of distributor location, to make a
determination. Sales of pesticides in this state and sales of
pesticides for use in this state by out-of-state distributors
are not exempt and must be included in the registrant's annual
report, as required under paragraph (c), and fees shall be paid
by the registrant based upon those reported sales. Sales of
pesticides in the state for use outside of the state are exempt
from the application fee in this paragraph if the registrant
properly documents the sale location and distributors. A
registrant paying more than the minimum fee shall pay the
balance due by March 1 based on the gross sales of the pesticide
by the registrant for the preceding calendar year. The fee for
disinfectants and sanitizers shall be the minimum. The minimum
fee is due by December 31 preceding the year for which the
application for registration is made. The commissioner shall
spend at least $300,000 per fiscal year from the pesticide
regulatory account for the purposes of the waste pesticide
collection program.

(b) An additional fee of $100 must be paid by the applicant
for each pesticide to be registered if the application is a
renewal application that is submitted after December 31.

(c) A registrant must annually report to the commissioner
the amount and type of each registered pesticide sold, offered
for sale, or otherwise distributed in the state. The report
shall be filed by March 1 for the previous year's registration.
The commissioner shall specify the form of the report and
require additional information deemed necessary to determine the
amount and type of pesticides annually distributed in the
state. The information required shall include the brand name,
amount, and formulation of each pesticide sold, offered for
sale, or otherwise distributed in the state, but the information
collected, if made public, shall be reported in a manner which
does not identify a specific brand name in the report.

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

Sec. 18.

Minnesota Statutes 2004, section 18B.31,
subdivision 5, is amended to read:

Subd. 5.

Application fee.

(a) An application for a
pesticide dealer license must be accompanied by a nonrefundable
application fee of deleted text begin $50 deleted text end new text begin $150 new text end .

(b) If an application for renewal of a pesticide dealer
license is not filed before January 1 of the year for which the
license is to be issued, an additional fee of $20 must be paid
by the applicant before the license is issued.

Sec. 19.

Minnesota Statutes 2004, section 18B.315,
subdivision 6, is amended to read:

Subd. 6.

Fees.

(a) An applicant for an aquatic pest
control license for a business must pay a nonrefundable
application fee of deleted text begin $100 deleted text end new text begin $200 new text end . An employee of a licensed
business must pay a nonrefundable application fee of $50 for an
individual aquatic pest control license.

(b) An application received after expiration of the aquatic
pest control license is subject to a penalty of 50 percent of
the application fee.

(c) An applicant that meets renewal requirements by
reexamination instead of attending workshops must pay the
equivalent workshop fee for the reexamination as determined by
the commissioner.

Sec. 20.

Minnesota Statutes 2004, section 18B.32,
subdivision 6, is amended to read:

Subd. 6.

Fees.

(a) An applicant for a structural pest
control license for a business must pay a nonrefundable
application fee of deleted text begin $100 deleted text end new text begin $200 new text end . An employee of a licensed
business must pay a nonrefundable application fee of $50 for an
individual structural pest control license.

(b) An application received after expiration of the
structural pest control license is subject to a penalty fee of
50 percent of the application fee.

(c) An applicant that meets renewal requirements by
reexamination instead of attending workshops must pay the
equivalent workshop fee for the reexamination as determined by
the commissioner.

Sec. 21.

Minnesota Statutes 2004, section 18B.33,
subdivision 7, is amended to read:

Subd. 7.

Application fees.

(a) A person initially
applying for or renewing a commercial applicator license must
pay a nonrefundable application fee of $50.

(b) deleted text begin If deleted text end A new text begin license new text end renewal application deleted text begin is not filed
before deleted text end new text begin received after new text end March 1 deleted text begin of deleted text end new text begin in new text end the year for which the
license is to be issued deleted text begin , an additional deleted text end new text begin is subject to a new text end penalty
fee of deleted text begin $10 must be paid before the commercial applicator deleted text end new text begin 50
percent of the application fee. The penalty fee must be paid
before the renewal new text end license may be issued.

(c) An application for a duplicate commercial applicator
license must be accompanied by a nonrefundable application fee
of $10.

Sec. 22.

Minnesota Statutes 2004, section 18B.34,
subdivision 5, is amended to read:

Subd. 5.

Fees.

(a) A person initially applying for or
renewing a noncommercial applicator license must pay a
nonrefundable application fee of $50, except an applicant who is
a government new text begin or Minnesota Conservation Corps new text end employee who uses
pesticides in the course of performing official duties must pay
a nonrefundable application fee of $10.

(b) deleted text begin If an deleted text end new text begin A license renewal new text end application deleted text begin for renewal of a
noncommercial license is not filed before deleted text end new text begin received after new text end March 1
in the year for which the license is to be issued deleted text begin , an additional
deleted text end new text begin is subject to a new text end penalty fee of deleted text begin $10 must be paid before the deleted text end new text begin 50
percent of the application fee. The penalty fee must be paid
before the new text end renewal license may be issued.

(c) An application for a duplicate noncommercial applicator
license must be accompanied by a nonrefundable application fee
of $10.

Sec. 23.

Minnesota Statutes 2004, section 18C.141,
subdivision 1, is amended to read:

Subdivision 1.

Program establishment.

The commissioner
shall establish deleted text begin a program deleted text end new text begin voluntary programs new text end to certify the
accuracy of analyses from soil and manure testing laboratories
and promote standardization of soil and manure testing
procedures and analytical results.

Sec. 24.

Minnesota Statutes 2004, section 18C.141,
subdivision 3, is amended to read:

Subd. 3.

Analyses reporting standards.

(a) The results
obtained from soil, manure, or plant analysis must be reported
in accordance with standard reporting units established by the
commissioner by rule. The standard reporting units must conform
as far as practical to uniform standards that are adopted on a
regional or national basis.

(b) If a certified laboratory offers a recommendation new text begin for
use in Minnesota new text end , the University of Minnesota recommendation or
that of another land grant college in a contiguous state must be
offered in addition to other recommendations, and the source of
the recommendation must be identified on the recommendation
form. If relative levels such as low, medium, or high are
presented to classify the analytical results, the corresponding
relative levels based on the analysis as designated by the
University of Minnesota or the land grant college in a
contiguous state must also be presented.

Sec. 25.

Minnesota Statutes 2004, section 18C.141,
subdivision 5, is amended to read:

Subd. 5.

deleted text begin certification deleted text end fees.

(a) new text begin The commissioner may
charge the actual costs for check sample preparation and
shipping.
new text end

new text begin (b) new text end A laboratory applying for certification deleted text begin shall pay an
application fee of $100 and a certification fee of $100 before
the certification is issued deleted text end new text begin may be charged a nonrefundable
certification fee to cover the actual costs for administration
of the program new text end .

deleted text begin (b) deleted text end new text begin (c) new text end Certification is deleted text begin valid for one year and the renewal
fee is $100. The commissioner shall charge an additional
application fee of $100 if a certified laboratory allows
certification to lapse before applying for renewed certification
deleted text end new text begin renewable on an annual basis new text end .

deleted text begin (c) deleted text end The commissioner shall notify a certified lab that its
certification lapses within 30 to 60 days of the date when the
certification lapses.

new text begin (d) The commissioner may accept donations to support the
development and operation of soil and manure programs.
new text end

new text begin (e) Revenues under this section are deposited in the
fertilizer account of the agricultural fund.
new text end

Sec. 26.

Minnesota Statutes 2004, section 18C.425,
subdivision 6, is amended to read:

Subd. 6.

Inspection fees.

The person responsible for
payment of the inspection fees for fertilizers, soil amendments,
or plant amendments sold and used in this state must pay an
inspection fee of deleted text begin 15 deleted text end new text begin 30 new text end cents per ton of fertilizer, soil
amendment, and plant amendment sold or distributed in this
state, with a minimum of $10 on all tonnage reports. Products
sold or distributed to manufacturers or exchanged between them
are exempt from the inspection fee imposed by this subdivision
if the products are used exclusively for manufacturing purposes.

Sec. 27.

Minnesota Statutes 2004, section 18E.03,
subdivision 2, is amended to read:

Subd. 2.

Expenditures.

(a) Money in the agricultural
chemical response and reimbursement account may only be used:

(1) to pay for the commissioner's responses to incidents
under chapters 18B, 18C, and 18D that are not eligible for
payment under section 115B.20, subdivision 2;

(2) to pay for emergency responses that are otherwise
unable to be funded;

(3) to reimburse and pay corrective action costs under
section 18E.04; and

(4) by the board to reimburse the commissioner for board
staff and other administrative costs up to deleted text begin $175,000 deleted text end new text begin $225,000 new text end per
fiscal year.

(b) Money in the agricultural chemical response and
reimbursement account is appropriated to the commissioner to
make payments as provided in this subdivision.

Sec. 28.

Minnesota Statutes 2004, section 18G.03,
subdivision 1, is amended to read:

Subdivision 1.

Entry and inspection.

(a) The
commissioner may enter and inspect a public or private place
that might harbor plant pests and may require that the owner
destroy or treat plant pests, plants, or other material.

(b) If the owner fails to properly comply with a directive
of the commissioner, the commissioner may have any necessary
work done at the owner's expense. The commissioner shall notify
the owner of the deadline for paying those expenses. If the
owner does not reimburse the commissioner for an expense within
a time specified by the commissioner, the expense is a charge
upon the county as provided in subdivision 4.

(c) If a deleted text begin dangerous deleted text end new text begin harmful new text end plant pest infestation or
infection threatens plants of an area in the state, the
commissioner may take any measures necessary to eliminate or
alleviate the deleted text begin danger deleted text end new text begin potential significant damage or harm new text end .

(d) The commissioner may collect fees required by this
chapter.

(e) The commissioner may issue and enforce deleted text begin a deleted text end written or
printed "stop-sale" deleted text begin order deleted text end new text begin orders, compliance agreements, and
other directives and requests new text end to the owner or custodian of any
plants or articles infested or infected with deleted text begin dangerously
injurious deleted text end new text begin a harmful new text end plant deleted text begin pests deleted text end new text begin pest new text end .

Sec. 29.

Minnesota Statutes 2004, section 18G.10,
subdivision 5, is amended to read:

Subd. 5.

Certificate fees.

(a) The commissioner shall
assess the fees in paragraphs (b) to (f) for the inspection,
service, and work performed in carrying out the issuance of a
phytosanitary certificate or export certificate. The inspection
fee must be based on mileage and inspection time.

(b) Mileage charge: current United States Internal Revenue
Service mileage rate.

(c) Inspection time: $50 per hour minimum or fee necessary
to cover department costs. Inspection time includes the driving
time to and from the location in addition to the time spent
conducting the inspection.

(d) deleted text begin A fee must be charged for any certificate issued that
requires laboratory analysis before issuance. The fee must be
deposited into the laboratory account as authorized in section
17.85. deleted text end new text begin If laboratory analysis or other technical analysis is
required to issue a certificate, the commissioner must set and
collect the fee to recover this additional cost.
new text end

(e) Certificate fee for product value greater than $250:
$75 for each phytosanitary or export certificate issued for any
single shipment valued at more than $250 in addition to any
mileage or inspection time charges that are assessed.

(f) Certificate fee for product value less than $250: $25
for each phytosanitary or export certificate issued for any
single shipment valued at less than $250 in addition to any
mileage or inspection time charges that are assessed.

new text begin (g) For services provided for in subdivision 7 that are
goods and services provided for the direct and primary use of a
private individual, business, or other entity, the commissioner
must set and collect the fees to cover the cost of the services
provided.
new text end

Sec. 30.

Minnesota Statutes 2004, section 18G.10,
subdivision 7, is amended to read:

Subd. 7.

deleted text begin plant protection inspections, deleted text end new text begin supplemental,
additional, or other new text end certificates deleted text begin , deleted text end new text begin and new text end permits deleted text begin , and fees deleted text end .

(a)
The commissioner may provide inspection, sampling, or
certification services to ensure that Minnesota plant products
or commodities meet import requirements of other states or
countries.

(b) The state plant regulatory official may issue permits
and certificates verifying that various Minnesota agricultural
products or commodities meet specified deleted text begin phytosanitary deleted text end new text begin plant
health new text end requirements, treatment requirements, or pest absence
assurances based on determinations by the commissioner. deleted text begin The
commissioner may collect fees sufficient to recover costs for
these permits or certificates. The fees must be deposited in
the nursery and phytosanitary account.
deleted text end

Sec. 31.

Minnesota Statutes 2004, section 18G.16,
subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) The definitions in this
subdivision apply to this section.

(b) "Metropolitan area" means the counties of Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

(c) "Municipality" means a home rule charter or statutory
city or a town located in the metropolitan area that exercises
municipal powers under section 368.01 or any general or special
law; a special park district organized under chapter 398; a
special-purpose park and recreation board organized under the
city charter of a city of the first class located in the
metropolitan area; a county in the metropolitan area for the
purposes of county-owned property or any portion of a county
located outside the geographic boundaries of a city or a town
exercising municipal powers; and a municipality or county
located outside the metropolitan area with an approved disease
control program.

(d) "Shade tree deleted text begin disease deleted text end new text begin pest new text end " means deleted text begin Dutch elm disease, oak
wilt, or any disorder deleted text end new text begin pests or pathogens new text end affecting the growth
and life of shade trees.

(e) "Wood utilization or disposal system" means facilities,
equipment, or systems used for the removal and disposal of
diseased new text begin or pest-infested new text end shade trees, including collection,
transportation, processing, or storage of wood and assisting in
the recovery of materials or energy from wood.

(f) "Approved deleted text begin disease deleted text end new text begin pest new text end control program" means a
municipal plan approved by the commissioner to control new text begin or
eradicate a new text end shade tree deleted text begin disease deleted text end new text begin pest new text end .

(g) " deleted text begin Disease deleted text end new text begin Pest new text end control area" means an area approved by
the commissioner within which a municipality will conduct an
approved deleted text begin disease deleted text end new text begin pest new text end control program.

(h) "Sanitation" means the identification, inspection,
disruption of a common root system, girdling, trimming, removal,
and disposal of dead new text begin , pest-infested new text end or diseased wood of shade
trees, including subsidies for trees removed pursuant to
subdivision 4, on public or private property within a disease
control area.

(i) "Reforestation" means the replacement of shade trees
removed from public property and the planting of a tree as part
of a municipal disease control program. For purposes of this
paragraph, "public property" includes private property within
five feet of the boulevard or street terrace in a city that
enacted an ordinance on or before January 1, 1977, that
prohibits or requires a permit for the planting of trees in the
public right-of-way.

new text begin (j) "Shade tree" means a woody perennial grown primarily
for aesthetic or environmental purposes.
new text end

Sec. 32.

Minnesota Statutes 2004, section 18G.16,
subdivision 2, is amended to read:

Subd. 2.

Commissioner to adopt rules.

The commissioner
may adopt rules relating to shade tree pest and disease control
in any municipality. The rules must prescribe control measures
to be used to prevent the spread of shade tree pests and
diseases and must include the following:

(1) a definition of shade tree;

(2) qualifications for tree inspectors;

(3) methods of identifying diseased or deleted text begin infested
deleted text end new text begin pest-infested new text end shade trees;

(4) procedures for giving reasonable notice of inspection
of private real property;

(5) measures for the removal of any shade tree which may
contribute to the spread of shade tree pests or disease and for
reforestation of pest or disease control areas;

(6) approved methods of treatment of shade trees;

(7) criteria for priority designation areas in an approved
pest or disease control program; and

(8) any other matters determined necessary by the
commissioner to prevent the spread of shade tree pests or
disease and enforce this section.

Sec. 33.

Minnesota Statutes 2004, section 18G.16,
subdivision 3, is amended to read:

Subd. 3.

Diagnostic laboratory.

The commissioner shall
operate a diagnostic laboratory for culturing diseased or
deleted text begin infested deleted text end new text begin pest-infested new text end trees for positive identification of
diseased or deleted text begin infested deleted text end new text begin pest-infested new text end shade trees.

Sec. 34.

Minnesota Statutes 2004, section 18G.16,
subdivision 4, is amended to read:

Subd. 4.

Cooperation by university.

The University of
Minnesota College of Natural Resources shall cooperate with the
department in control of shade tree disease, pests, and
disorders and management of shade tree populations. The College
of Natural Resources shall cooperate with the department to
conduct tree inspector certification and recertification
workshops for certified tree inspectors. The College of Natural
Resources shall also conduct research into means for identifying
diseased new text begin or pest-infested new text end shade trees, develop and evaluate
control measures, and develop means for disposing of and using
diseased new text begin or pest-infested new text end shade trees.

Sec. 35.

Minnesota Statutes 2004, section 18G.16,
subdivision 5, is amended to read:

Subd. 5.

Experimental programs.

The commissioner may
establish experimental programs for sanitation or treatment of
shade tree diseases and for research into tree varieties most
suitable for municipal reforestation. The research must include
considerations of disease resistance, energy conservation, and
other factors considered appropriate. The commissioner may make
grants to municipalities or enter into contracts with
municipalities, nurseries, colleges, universities, or state or
federal agencies in connection with experimental shade tree
programs including research to assist municipalities in
establishing priority designation areas for shade tree deleted text begin disease
deleted text end new text begin pest new text end control and energy conservation.

Sec. 36.

Minnesota Statutes 2004, section 18G.16,
subdivision 6, is amended to read:

Subd. 6.

Removal of diseased or deleted text begin infested deleted text end new text begin pest-infested
new text end trees.

After reasonable notice of inspection, an owner of real
property containing a shade tree that is diseased, infested, or
may contribute to the spread of pests or disease, must remove or
treat the tree within the period of time and in the manner
established by the commissioner. Trees that are not removed in
compliance with the commissioner's rules must be declared a
public nuisance and removed or treated by approved methods by
the municipality, which may assess all or part of the expense,
limited to the lowest contract rates available that include wage
levels which meet Minnesota minimum wage standards, to the
property and the expense becomes a lien on the property. A
municipality may assess not more than 50 percent of the expense
of treating with an approved method or removing diseased new text begin or
pest-infested new text end shade trees located on street terraces or
boulevards to the abutting properties and the assessment becomes
a lien on the property.

Sec. 37.

Minnesota Statutes 2004, section 18G.16,
subdivision 7, is amended to read:

Subd. 7.

Rules; applicability to municipalities.

The
rules of the commissioner apply in a municipality unless the
municipality adopts an ordinance determined by the commissioner
to be more stringent than the rules of the commissioner. The
rules of the commissioner or the municipality apply to all state
agencies, special purpose districts, and metropolitan
commissions as defined in section 473.121, subdivision 5a, that
own or control land adjacent to or within a shade tree deleted text begin disease
deleted text end new text begin pest new text end control area.

Sec. 38.

Minnesota Statutes 2004, section 18G.16,
subdivision 8, is amended to read:

Subd. 8.

Grants to municipalities.

(a) The commissioner
may, in the name of the state and within the limit of
appropriations provided, make a grant to a municipality with an
approved deleted text begin disease deleted text end new text begin pest new text end control program for the partial funding of
municipal sanitation and reforestation programs to replace trees
lost to new text begin pest, new text end disease new text begin , new text end or natural disaster. The commissioner
may make a grant to a home rule charter or statutory city, a
special purpose park and recreation board organized under a
charter of a city of the first class, a nonprofit corporation
serving a city of the first class, or a county having an
approved disease control program for the acquisition or
implementation of a wood use or disposal system.

(b) The commissioner shall adopt rules for the
administration of grants under this subdivision. The rules must
contain:

(1) procedures for grant applications;

(2) conditions and procedures for the administration of
grants;

(3) criteria of eligibility for grants including, but not
limited to, those specified in this subdivision; and

(4) other matters the commissioner may find necessary to
the proper administration of the grant program.

(c) Grants for wood utilization and disposal systems made
by the commissioner under this subdivision must not exceed 50
percent of the total cost of the system. Grants for sanitation
and reforestation must be combined into one grant program.
Grants to a municipality for sanitation must not exceed 50
percent of sanitation costs approved by the commissioner
including any amount of sanitation costs paid by special
assessments, ad valorem taxes, federal grants, or other funds.
A municipality must not specially assess a property owner an
amount greater than the amount of the tree's sanitation cost
minus the amount of the tree's sanitation cost reimbursed by the
commissioner. Grants to municipalities for reforestation must
not exceed 50 percent of the wholesale cost of the trees planted
under the reforestation program; provided that a reforestation
grant to a county may include 90 percent of the cost of the
first 50 trees planted on public property in a town not included
in the definition of municipality in subdivision 1 and with less
than 1,000 population when the town applies to the county.
Reforestation grants to towns and home rule charter or statutory
cities of less than 4,000 population with an approved deleted text begin disease
deleted text end new text begin pest new text end control program may include 90 percent of the cost of the
first 50 trees planted on public property. The governing body
of a municipality that receives a reforestation grant under this
section must appoint up to seven residents of the municipality
or designate an existing municipal board or committee to serve
as a reforestation advisory committee to advise the governing
body of the municipality in the administration of the
reforestation program. For the purpose of this subdivision,
"cost" does not include the value of a gift or dedication of
trees required by a municipal ordinance but does include
documented "in-kind" services or voluntary work for
municipalities with a population of less than 1,000 according to
the most recent federal census.

(d) Based upon estimates submitted by the municipality to
the commissioner, which state the estimated costs of sanitation
and reforestation in the succeeding quarter under an approved
program, the commissioner shall direct quarterly advance
payments to be made by the state to the municipality commencing
April 1. The commissioner shall direct adjustment of any
overestimate in a succeeding quarter. A municipality may elect
to receive the proceeds of its sanitation and reforestation
grants on a periodic cost reimbursement basis.

(e) A home rule charter or statutory city, county outside
the metropolitan area, or any municipality, as defined in
subdivision 1, may submit an application for a grant authorized
by this subdivision concurrently with its request for approval
of a deleted text begin disease deleted text end new text begin pest new text end control program.

(f) The commissioner shall not make grants for sanitation
and reforestation or wood utilization and disposal systems in
excess of 67 percent of the amounts appropriated for those
purposes to the municipalities located within the metropolitan
area, as defined in subdivision 1.

Sec. 39.

Minnesota Statutes 2004, section 18G.16,
subdivision 9, is amended to read:

Subd. 9.

Subsidies to certain owners.

A municipality may
provide subsidies to nonprofit organizations, to owners of
private residential property of five acres or less, to owners of
property used for a homestead of more than five acres but less
than 20 acres, and to nonprofit cemeteries for the approved
treatment or removal of diseased new text begin or pest-infested new text end shade trees.

Notwithstanding any law to the contrary, an owner of
property on which shade trees are located may contract with a
municipality to provide protection against the cost of approved
treatment or removal of diseased new text begin or pest-infested new text end shade trees or
shade trees that will contribute to the spread of shade tree
diseases new text begin or pest infestations new text end . Under the contract, the
municipality must pay for the removal or approved treatment
under terms and conditions determined by its governing body.

Sec. 40.

Minnesota Statutes 2004, section 18G.16,
subdivision 14, is amended to read:

Subd. 14.

Municipal option to participate in program.

The term "municipality" shall include only those municipalities
which have informed the commissioner of their intent to continue
an approved deleted text begin disease deleted text end new text begin pest new text end control program. Any municipality
desiring to participate in the grants-in-aid for the partial
funding of municipal sanitation and reforestation programs must
notify the commissioner in writing before the beginning of the
calendar year in which it wants to participate and must have an
approved deleted text begin disease deleted text end new text begin pest new text end control program during any year in which
it receives grants-in-aid. Notwithstanding the provisions of
any law to the contrary, no municipality shall be required to
have an approved disease control program after December 31, 1981.

Sec. 41.

Minnesota Statutes 2004, section 18H.02, is
amended by adding a subdivision to read:

new text begin Subd. 12a. new text end

new text begin Individual. new text end

new text begin "Individual" means a human being.
new text end

Sec. 42.

Minnesota Statutes 2004, section 18H.02,
subdivision 21, is amended to read:

Subd. 21.

Nursery stock broker.

"Nursery stock broker"
means a nursery stock dealer engaged in the business of selling
or reselling new text begin certified new text end nursery stock as a business transaction
without taking ownership or handling the nursery stock.

Sec. 43.

Minnesota Statutes 2004, section 18H.02,
subdivision 22, is amended to read:

Subd. 22.

Nursery stock dealer.

"Nursery stock dealer"
means a person involved in the acquisition and further
distribution of new text begin certified new text end nursery stock; the utilization of
new text begin certified new text end nursery stock for landscaping or purchase of new text begin certified
new text end nursery stock for other persons; or the distribution
of new text begin certified new text end nursery stock with a mechanical digger, commonly
known as a tree spade, or by any other means. A person who
purchases more than half of the new text begin certified new text end nursery stock offered
for sale at a sales location during the current certificate year
is considered a nursery stock dealer rather than a nursery stock
grower for the purposes of determining a proper fee schedule.
Nursery stock brokers, landscapers, and tree spade operators are
considered nursery stock dealers for purposes of determining
proper certification.

Sec. 44.

Minnesota Statutes 2004, section 18H.02,
subdivision 23, is amended to read:

Subd. 23.

Nursery stock grower.

"Nursery stock grower"
includes, but is not limited to, a person who raises, grows, or
propagates nursery stock, outdoors or indoors. A person who
grows more than half of the new text begin certified new text end nursery stock offered for
sale at a sales location during the current certificate year is
considered a nursery stock grower for the purpose of determining
a proper fee schedule.

Sec. 45.

Minnesota Statutes 2004, section 18H.02,
subdivision 32, is amended to read:

Subd. 32.

Sales location.

"Sales location" means a fixed
location from which new text begin certified new text end nursery stock is displayed or
distributed.

Sec. 46.

Minnesota Statutes 2004, section 18H.02,
subdivision 34, is amended to read:

Subd. 34.

Tree spade operator.

"Tree spade operator"
means a deleted text begin nursery stock dealer deleted text end new text begin person new text end who uses a tree spade to dig
deleted text begin nursery stock and sells deleted text end new text begin , sell new text end , deleted text begin offers deleted text end new text begin offer new text end for sale,
deleted text begin distributes deleted text end new text begin distribute new text end , deleted text begin and transports deleted text end new text begin or transport new text end certified
nursery stock.

Sec. 47.

Minnesota Statutes 2004, section 18H.05, is
amended to read:

18H.05 NURSERY CERTIFICATE REQUIREMENTS.

(a) No person may offer for sale or distribute new text begin certified
new text end nursery stock as a nursery stock grower or dealer without first
obtaining the appropriate nursery stock certificate from the
commissioner. new text begin The commissioner may not issue a certificate to a
person who does not sell certified nursery stock. new text end Certificates
are issued solely for these purposes and may not be used for
other purposes.

(b) A certificate issued by the commissioner expires on
December 31 of the year it is issued.

(c) A person required to be certified by this section must
apply for a certificate or for renewal on a form furnished by
the commissioner which must contain:

(1) the name and address of the applicant, the number of
locations to be operated by the applicant and their addresses,
and the assumed business name of the applicant;

(2) if other than an individual, a statement whether a
person is a partnership, corporation, or other organization; deleted text begin and
deleted text end

(3) the type of business to be operated and, if the
applicant is an agent, the principals the applicant represents new text begin ;
and
new text end

new text begin (4) source or sources of purchased nursery stock new text end .

(d) No person may:

(1) falsely claim to be a certified dealer, grower, broker,
or agent; deleted text begin or
deleted text end

(2) make willful false statements when applying for a
certificate new text begin ; or
new text end

new text begin (3) sell or distribute certified nursery stock to an
uncertified nursery stock dealer who is required to be certified
or nursery stock grower new text end .

(e) Each application for a certificate must be accompanied
by the appropriate certificate fee under section 18H.07.

(f) Certificates issued by the commissioner must be
prominently displayed to the public in the place of business
where new text begin certified new text end nursery stock is sold or distributed.

(g) The commissioner may refuse to issue a certificate for
cause.

(h) Each grower or dealer is entitled to one sales location
under the certificate of the grower or dealer. Each additional
sales location maintained by the person requires the payment of
the full certificate fee for each additional sales outlet.

(i) A grower who is also a dealer is certified only as a
grower for that specific site.

(j) A certificate is personal to the applicant and may not
be transferred. A new certificate is necessary if the business
entity is changed or if the membership of a partnership is
changed, whether or not the business name is changed.

(k) The certificate issued to a dealer or grower applies to
the particular premises named in the certificate. However, if
prior approval is obtained from the commissioner, the place of
business may be moved to the other premises or location without
an additional certificate fee.

(l) A collector of nursery stock from the wild is required
to obtain a dealer's certificate from the commissioner and is
subject to all the requirements that apply to the inspection of
nursery stock. All collected nursery stock must be labeled as
"collected from the wild."

Sec. 48.

Minnesota Statutes 2004, section 18H.06, is
amended to read:

18H.06 EXEMPT NURSERY SALES.

Subdivision 1.

Not-for-profit sales.

An organization or
individual may offer for sale certified nursery stock and be
exempt from the requirement to obtain a nursery stock dealer
certificate if sales are conducted by a nonprofit charitable,
educational, or religious organization that:

(1) conducts sales or distributions of certified nursery
stock on deleted text begin 14 deleted text end new text begin ten new text end or fewer days in a calendar year; and

(2) uses the proceeds from its certified nursery stock
sales or distribution for charitable, educational, or religious
purposes.

Subd. 2.

deleted text begin nursery hobbyist deleted text end occasional sales.

(a) An
deleted text begin organization or deleted text end individual may offer nursery stock for sale and
be exempt from the requirement to obtain a nursery stock dealer
certificate if:

(1) the gross sales of all nursery stock in a calendar year
do not exceed $2,000;

(2) all nursery stock sold or distributed by the deleted text begin hobbyist
deleted text end new text begin individual new text end is intended for planting in Minnesota; deleted text begin and
deleted text end

(3) all nursery stock purchased or procured for resale or
distribution was grown in Minnesota and has been certified by
the commissioner new text begin ; and
new text end

new text begin (4) conducts sales or distributions of nursery stock on ten
or fewer days in a calendar year new text end .

(b) The commissioner may prescribe the conditions of the
exempt nursery sales under this subdivision and may conduct
routine inspections of the nursery stock offered for sale.

Sec. 49.

Minnesota Statutes 2004, section 18H.07,
subdivision 1, is amended to read:

Subdivision 1.

Establishment of fees.

The commissioner
shall establish fees sufficient to allow for the administration
and enforcement of this chapter and rules adopted under this
chapter, including the portion of general support costs and
statewide indirect costs of the agency attributable to that
function, with a reserve sufficient for up to six months. The
commissioner shall review the fee schedule annually in
consultation with the Minnesota Nursery and Landscape Advisory
Committee. For the certificate year beginning January 1, deleted text begin 2004
deleted text end new text begin 2006 new text end , the fees are as described in this section.

Sec. 50.

Minnesota Statutes 2004, section 18H.07,
subdivision 2, is amended to read:

Subd. 2.

Nursery stock grower certificate.

(a) A nursery
stock grower must pay an annual fee based on the area of all
acreage on which nursery stock is grown for certification as
follows:

(1) less than one-half acre, $150;

(2) from one-half acre to two acres, $200;

(3) over two acres up to five acres, $300;

(4) over five acres up to ten acres, $350;

(5) over ten acres up to 20 acres, $500;

(6) over 20 acres up to 40 acres, $650;

(7) over 40 acres up to 50 acres, $800;

(8) over 50 acres up to 200 acres, $1,100;

(9) over 200 acres up to 500 acres, $1,500; and

(10) over 500 acres, $1,500 plus $2 for each additional
acre.

(b) In addition to the fees in paragraph (a), a penalty of
ten percent of the fee due must be charged for each month new text begin , or
portion thereof, new text end that the fee is delinquent new text begin up to a maximum of
30 percent new text end for any application for renewal not received by
January 1 of the year following expiration of a certificate.

Sec. 51.

Minnesota Statutes 2004, section 18H.07,
subdivision 3, is amended to read:

Subd. 3.

Nursery stock dealer certificate.

(a) A nursery
stock dealer must pay an annual fee based on the dealer's gross
sales of new text begin certified new text end nursery stock per location during the
deleted text begin preceding deleted text end new text begin most recent new text end certificate year. A certificate applicant
operating for the first time must pay the minimum fee. The fees
per sales location are:

(1) gross sales up to deleted text begin $20,000 deleted text end new text begin $5,000 new text end , $150;

(2) gross sales over deleted text begin $20,000 deleted text end new text begin $5,000 new text end up to deleted text begin $100,000 deleted text end new text begin $20,000 new text end ,
$175;

(3) gross sales over deleted text begin $100,000 deleted text end new text begin $20,000 new text end up to
deleted text begin $250,000 deleted text end new text begin $50,000 new text end , $300;

(4) gross sales over deleted text begin $250,000 deleted text end new text begin $50,000 new text end up to
deleted text begin $500,000 deleted text end new text begin $75,000 new text end , $425;

(5) gross sales over deleted text begin $500,000 deleted text end new text begin $75,000 new text end up to
deleted text begin $1,000,000 deleted text end new text begin $100,000 new text end , $550;

(6) gross sales over deleted text begin $1,000,000 deleted text end new text begin $100,000 new text end up to
deleted text begin $2,000,000 deleted text end new text begin $200,000 new text end , $675; and

(7) gross sales over deleted text begin $2,000,000 deleted text end new text begin $200,000 new text end , $800.

(b) In addition to the fees in paragraph (a), a penalty of
ten percent of the fee due must be charged for each month new text begin , or
portion thereof, new text end that the fee is delinquent new text begin up to a maximum of
30 percent new text end for any application for renewal not received by
January 1 of the year following expiration of a certificate.

Sec. 52.

Minnesota Statutes 2004, section 18H.09, is
amended to read:

18H.09 NURSERY deleted text begin INSPECTIONS REQUIRED deleted text end new text begin STOCK CERTIFICATION
REQUIREMENTS new text end .

(a) All nursery stock growing new text begin at new text end sites deleted text begin in Minnesota must
have had an deleted text end new text begin identified by nursery stock growers and submitted
for new text end inspection new text begin must be inspected new text end by the commissioner deleted text begin during
deleted text end new text begin within new text end the previous 12 months new text begin prior to sale new text end and found apparently
free from quarantine and regulated nonquarantine pests as well
as significantly dangerous or potentially damaging plant pests.
new text begin The commissioner may waive a site inspection under the following
conditions:
new text end

new text begin (1) the nursery stock is not going to be sold within 12
months;
new text end

new text begin (2) the nursery stock will not be moved out of Minnesota;
and
new text end

new text begin (3) the nursery site or stock is not subject to
certification requirements associated with a state or federally
regulated or quarantined plant pest.
new text end

All nursery stock originating from out of state and offered
for sale in Minnesota must have been inspected by the
appropriate state or federal agency during the previous 12
months and found free from quarantine and regulated
nonquarantine pests as well as significantly dangerous or
potentially damaging plant pests. A nursery stock certificate
is valid from January 1 to December 31.

(b) Nursery stock must be accessible to the commissioner
for inspection during regular business hours. Weeds or other
growth that hinder a proper inspection are grounds to suspend or
withhold a certificate or require a reinspection.

(c) Inspection reports issued to growers must contain a
list of the plant pests found at the time of inspection.
Withdrawal-from-distribution orders are considered part of the
inspection reports. A withdrawal-from-distribution order must
contain a list of plants withdrawn from distribution and the
location of the plants.

(d) The commissioner may post signs to delineate sections
withdrawn from distribution. These signs must remain in place
until the commissioner removes them or grants written permission
to the grower to remove the signs.

(e) Inspection reports issued to dealers must outline the
violations involved and corrective actions to be taken including
withdrawal-from-distribution orders which would specify nursery
stock that could not be distributed from a certain area.

(f) Optional inspections of plants may be conducted by the
commissioner upon request by any persons desiring an
inspection. A fee as provided in section 18H.07 must be charged
for such an inspection.

Sec. 53.

Minnesota Statutes 2004, section 18H.13,
subdivision 1, is amended to read:

Subdivision 1.

deleted text begin labeling deleted text end new text begin identification of
origin new text end .

deleted text begin Plants, plant materials, or nursery stock distributed
into Minnesota must be conspicuously labeled on the exterior
with the name of the consignor, the state of origin, and the
name of the consignee and must be accompanied by certification
documents to satisfy all applicable state and federal
quarantines. deleted text end Proof of valid nursery certification new text begin and origin of
all nursery stock new text end must deleted text begin also deleted text end accompany the shipment. It is the
shared responsibility of both the consignee and consignor to
examine all shipments for the presence of current and applicable
nursery stock certifications for all plant material from all
sources of stock in each shipment.

Sec. 54.

Minnesota Statutes 2004, section 18H.15, is
amended to read:

18H.15 VIOLATIONS.

(a) A person who offers to distribute nursery stock that is
uncertified, uninspected, or falsely labeled or advertised
possesses an illegal regulated commodity that is considered
infested or infected with harmful plant pests and subject to
regulatory action and control. If the commissioner determines
that the provisions of this section have been violated, the
commissioner may order the destruction of all of the plants
unless the person:

(1) provides proper phytosanitary preclearance,
phytosanitary certification, or nursery stock certification;

(2) agrees to have the plants, plant materials, or nursery
stock returned to the consignor; and

(3) provides proper documentation, certification, or
compliance to support advertising claims.

(b) The plant owner is liable for all costs associated with
a withdrawal-from-distribution order or the quarantine,
treatment, or destruction of plants. The commissioner is not
liable for actual or incidental costs incurred by a person due
to the commissioner's actions. The commissioner must be
reimbursed by the owner of the plants for the actual expenses
incurred in carrying out a withdrawal-from-distribution order or
the quarantine, treatment, or destruction of any plants.

(c) It is unlawful for a person to:

(1) misrepresent, falsify, or knowingly distribute, sell,
advertise, or display damaged, mislabeled, misrepresented,
infested, or infected nursery stock;

(2) fail to obtain a nursery certificate as required by the
commissioner;

(3) fail to renew a nursery certificate, but continue
business operations;

(4) fail to display a nursery certificate;

(5) misrepresent or falsify a nursery certificate;

(6) refuse to submit to a nursery inspection;

(7) fail to provide the cooperation necessary to conduct a
successful nursery inspection;

(8) offer for sale uncertified plants, plant materials, or
nursery stock;

(9) possess an illegal regulated commodity;

(10) violate or disobey a commissioner's order;

(11) violate a quarantine issued by the commissioner;

(12) fail to obtain phytosanitary certification for plant
material or nursery stock brought into Minnesota;

(13) deface, mutilate, or destroy a nursery stock
certificate, phytosanitary certificate, or phytosanitary
preclearance certificate, or other commissioner mark, permit, or
certificate;

(14) fail to notify the commissioner of an uncertified
shipment of plants, plant materials, or nursery stock; deleted text begin or
deleted text end

(15) transport uncertified plants, plant materials, or
nursery stock in Minnesota new text begin ; or
new text end

new text begin (16) sell nursery stock to an uncertified nursery stock
dealer who is required to be certified new text end .

Sec. 55.

Minnesota Statutes 2004, section 18H.18,
subdivision 1, is amended to read:

Subdivision 1.

Restrictions on collecting.

No person
shall distribute deleted text begin the state flower (Cypripedium reginae), or deleted text end any
species of deleted text begin lady slipper (Cypripedieae) deleted text end new text begin orchids
(Orchidaceae) new text end , deleted text begin any member of the orchid family, deleted text end any gentian
(Gentiana), arbutus (Epigaea repens), lilies (Lilium new text begin species new text end ),
coneflowers (Echinacea new text begin species new text end ), bloodroot (Sanguinaria
canadensis), mayapple (Podophyllum peltatutum), any species of
trillium new text begin (Trillium species) new text end , or lotus (Nelumbo lutea), which
have been collected in any manner from any public or private
property without the written permission of the property owner
and written authorization from the commissioner.

Sec. 56.

Minnesota Statutes 2004, section 19.64,
subdivision 1, is amended to read:

Subdivision 1.

Registration.

Every person who owns,
leases, or possesses colonies of bees deleted text begin or who intends to bring
bees into the state under an entry permit deleted text end shall register the
bees with the commissioner on or before deleted text begin April 15 deleted text end new text begin June 1 new text end of each
year new text begin or within 15 days of entry into Minnesota or taking
possession of hives, whichever comes first new text end . The registration
application shall include the name and address of the applicant,
a description of the exact location of each of the applicant's
apiaries by county, township, range and quarter section, and
other information required by the commissioner. The fee for
registration under this subdivision is deleted text begin $10 deleted text end new text begin $25 for beekeepers
with fewer than 50 colonies and $50 for beekeepers with 50 or
more colonies maintained in the state new text end . deleted text begin The commissioner shall
provide registered beekeepers with the Minnesota pest report.
deleted text end new text begin The registration required by this section is not transferable.
At least one colony in each location must be plainly and legibly
marked with the owner's name and telephone number and address,
and other information required by the commissioner. The
department shall provide information on colony locations as
reported on the registrations on an Internet Web site or through
other appropriate measures.
new text end

Sec. 57.

Minnesota Statutes 2004, section 25.341,
subdivision 2, is amended to read:

Subd. 2.

Application; fee; term.

A person who is
required to have a commercial feed license shall submit an
application on a form provided or approved by the commissioner
accompanied by a deleted text begin license deleted text end fee of $25 paid to the commissioner for
each deleted text begin facility deleted text end new text begin location new text end . new text begin A license is not transferable from one
person to another, from one ownership to another, or from one
location to another. new text end The license year is the calendar year. A
license expires on December 31 of the year for which it is
issued, except that a license is valid through January 31 of the
next year or until the issuance of the renewal license,
whichever comes first, if the licensee has filed a renewal
application with the commissioner on or before December 31 of
the year for which the current license was issued. deleted text begin A new
applicant who deleted text end new text begin Any person who is required to have, but new text end fails to
obtain a license deleted text begin within 15 working days of notification of the
requirement to obtain a license, deleted text end or a licensee who fails to
comply with license renewal requirements, shall pay a $50 late
fee in addition to the license fee. deleted text begin The commissioner may issue
a withdrawal from distribution order on any commercial feed that
an unlicensed person produces or distributes in the state until
a license is issued.
deleted text end

Sec. 58.

new text begin [25.342] CERTIFICATES, FREE SALE.
new text end

new text begin A nonrefundable application fee of $25 must accompany all
free sale certificate requests to facilitate the movement of
Minnesota processed and manufactured feeds destined for export
from the state. Each label submitted for review must be
accompanied by a nonrefundable $50 application fee.
new text end

Sec. 59.

Minnesota Statutes 2004, section 25.39,
subdivision 1, is amended to read:

Subdivision 1.

Amount of fee.

(a) An inspection fee at
the rate of 16 cents per ton must be paid to the commissioner on
commercial feeds distributed in this state by the person who
first distributes the commercial feed, except that new text begin :
new text end

new text begin (1) new text end no fee deleted text begin needs to deleted text end new text begin need new text end be paid on:

deleted text begin (1) deleted text end new text begin (i) new text end a commercial feed if the payment has been made by a
previous distributor; new text begin or
new text end

deleted text begin (2) deleted text end new text begin (ii) new text end customer formula feeds if the inspection fee is
paid on the commercial feeds which are used as ingredients; or

deleted text begin (3) commercial feeds used as ingredients for the
manufacture of commercial feeds if the fee has been paid by a
previous distributor. If the fee has already been paid, credit
must be given for that payment. deleted text end new text begin (2) new text end a Minnesota feed distributor
who deleted text begin distributes deleted text end new text begin can substantiate that greater than 50 percent of
the distribution of new text end commercial feed new text begin is new text end to purchasers outside the
state may purchase commercial feeds deleted text begin , deleted text end without payment deleted text begin by any
person deleted text end of the inspection fee deleted text begin required on those purchases, deleted text end under
a new text begin tonnage fee exemption new text end permit issued by the commissioner. Such
new text begin location specific new text end permits shall deleted text begin only deleted text end be issued new text begin on a calendar
year basis new text end to commercial feed distributors who new text begin submit a $100
nonrefundable application fee and new text end comply with rules adopted by
the commissioner relative to record keeping, tonnage of
commercial feed distributed in Minnesota, total of all
commercial feed tonnage distributed, and all other information
which the commissioner may require so as to ensure that proper
inspection fee payment has been made.

(b) In the case of pet food distributed in the state only
in packages of ten pounds or less, a listing of each product and
a current label for each product must be submitted annually on
forms provided by the commissioner and accompanied by an annual
fee of $50 for each product in lieu of the inspection fee. This
annual fee is due by July 1. The inspection fee required by
paragraph (a) applies to pet food distributed in packages
exceeding ten pounds.

(c) In the case of specialty pet food distributed in the
state only in packages of ten pounds or less, a listing of each
product and a current label for each product must be submitted
annually on forms provided by the commissioner and accompanied
by an annual fee of $25 for each product in lieu of the
inspection fee. This annual fee is due by July 1. The
inspection fee required by paragraph (a) applies to specialty
pet food distributed in packages exceeding ten pounds.

(d) The minimum inspection fee is $10 per annual reporting
period.

Sec. 60.

Minnesota Statutes 2004, section 25.39,
subdivision 4, is amended to read:

Subd. 4.

Commercial feed inspection account.

A
commercial feed inspection account is established in the
agricultural fund. Fees and penalties collected under deleted text begin sections
25.35 to 25.43 deleted text end new text begin this chapter new text end and interest attributable to money
in the account must be deposited in the agricultural fund and
credited to the commercial feed inspection account. Money in
the account, including interest earned, is appropriated to the
commissioner for the administration and enforcement of deleted text begin sections
25.341 to 25.43 deleted text end new text begin this chapter new text end .

Sec. 61.

Minnesota Statutes 2004, section 31.94, is
amended to read:

31.94 COMMISSIONER DUTIES.

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

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

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

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

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

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

(b) By November 15 of each even-numbered year the
commissioner, in conjunction with the task force created in
paragraph (c), shall report on the status of organic agriculture
in Minnesota to the legislative policy and finance committees
and divisions with jurisdiction over agriculture. The report
must include:

(1) a description of current state or federal programs
directed toward organic agriculture, including significant
results and experiences of those programs;

(2) a description of specific actions the department of
agriculture is taking in the area of organic agriculture,
including the proportion of the department's budget spent on
organic agriculture;

(3) a description of current and future research needs at
all levels in the area of organic agriculture;

(4) suggestions for changes in existing programs or
policies or enactment of new programs or policies that will
affect organic agriculture;

(5) a description of market trends and potential for
organic products;

(6) available information, using currently reliable data,
on the price received, yield, and profitability of organic
farms, and a comparison with data on conventional farms; and

(7) available information, using currently reliable data,
on the positive and negative impacts of organic production on
the environment and human health.

(c) The commissioner shall appoint a Minnesota Organic
Advisory Task Force to advise the commissioner on policies and
practices to improve organic agriculture in Minnesota. The task
force must consist of the following residents of the state:

(1) three farmers using organic agriculture methods;

(2) two organic food wholesalers, retailers, or
distributors;

(3) one representative of organic food certification
agencies;

(4) two organic food processors;

(5) one representative from the Minnesota Extension
Service;

(6) one representative from a Minnesota postsecondary
research institution;

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

(8) one at-large member;

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

(10) one organic consumer representative.

Terms, compensation, and removal of members are governed by
section 15.059, subdivision 6. The task force must meet at
least twice each year and expires on June 30, deleted text begin 2005 deleted text end new text begin 2009 new text end .

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 62.

Minnesota Statutes 2004, section 35.02,
subdivision 1, is amended to read:

Subdivision 1.

Members; officers.

The board has five
members appointed by the governor with the advice and consent of
the senate, three of whom are producers of livestock in the
state, and two of whom are practicing veterinarians licensed in
Minnesota. The dean of the College of Veterinary Medicine new text begin and
the director of the Veterinary Diagnostic Laboratory new text end of the
University of Minnesota may serve as deleted text begin consultant deleted text end new text begin consultants new text end to
the board without vote. Appointments to fill unexpired terms
must be made from the classes to which the retiring members
belong. The board shall elect a president and a vice-president
from among its members and a veterinarian licensed in Minnesota
who is not a member to be its executive director for a term of
one year and until a successor qualifies. The board shall set
the duties of the director.

new text begin EFFECTIVE DATE. new text end

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

Sec. 63.

Minnesota Statutes 2004, section 35.03, is
amended to read:

35.03 POWERS, DUTIES, AND REPORTS.

The board shall protect the health of Minnesota domestic
animals and carry out the provisions of this chapter. The board
shall make rules necessary to protect the health of domestic
animals. The board shall meet at least quarterly. Officers
must be elected each April. On or before November 1 of each
year the board shall publish an annual report. new text begin The University
of Minnesota Veterinary Diagnostic Laboratory is the official
laboratory for the board. At least quarterly, the director of
the Veterinary Diagnostic Laboratory must report on the
laboratory's activities.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 64.

Minnesota Statutes 2004, section 35.05, is
amended to read:

35.05 AUTHORITY OF STATE BOARD.

(a) The state board may quarantine or kill any domestic
animal infected with, or which has been exposed to, a contagious
or infectious dangerous disease if it is necessary to protect
the health of the domestic animals of the state.

(b) The board may regulate or prohibit the arrival in and
departure from the state of infected or exposed animals and, in
case of violation of any rule or prohibition, may detain any
animal at its owner's expense. The board may regulate or
prohibit the importation of domestic animals which, in its
opinion, may injure the health of Minnesota livestock.

(c) new text begin When the governor declares an emergency under section
35.0661, new text end the board new text begin , through its executive director, new text end may
deleted text begin implement the United States Voluntary Johne's Disease Herd
Status Program for Cattle deleted text end new text begin assume control of such resources
within the University of Minnesota's Veterinary Diagnostic
Laboratory as necessary to effectively address the disease
outbreak. The director of the laboratory and other laboratory
personnel must cooperate fully in performing necessary functions
related to the outbreak or threatened outbreak new text end .

(d) Rules adopted by the board under authority of this
chapter must be published in the State Register.

new text begin EFFECTIVE DATE. new text end

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

Sec. 65.

new text begin [35.153] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin The definitions in this
section apply to section 17.452, this section, and section
35.155.
new text end

new text begin Subd. 2. new text end

new text begin Cervidae. new text end

new text begin "Cervidae" means animals that are
members of the family Cervidae and includes, but is not limited
to, white-tailed deer, mule deer, red deer, elk, moose, caribou,
reindeer, and muntjac.
new text end

new text begin Subd. 3. new text end

new text begin Farmed cervidae. new text end

new text begin "Farmed cervidae" means
cervidae that are:
new text end

new text begin (1) raised for any purpose; and
new text end

new text begin (2) registered in a manner approved by the Board of Animal
Health.
new text end

new text begin Subd. 4. new text end

new text begin Owner. new text end

new text begin "Owner" means a person who owns or is
responsible for the raising of farmed cervidae.
new text end

new text begin Subd. 5. new text end

new text begin Herd. new text end

new text begin "Herd" means all cervidae:
new text end

new text begin (1) maintained on common ground for any purpose; or
new text end

new text begin (2) under common ownership or supervision, geographically
separated, but that have an interchange or movement of animals
without regard to whether the animals are infected with or
exposed to diseases.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 66.

Minnesota Statutes 2004, section 35.155, is
amended to read:

35.155 FARMED CERVIDAE.

new text begin Subdivision 1. new text end

new text begin Running at large prohibited. new text end

new text begin (a) An owner
may not allow farmed cervidae to run at large. The owner must
make all reasonable efforts to return escaped farmed cervidae to
their enclosures as soon as possible. The owner must notify the
commissioner of natural resources of the escape of farmed
cervidae if the farmed cervidae are not returned or captured by
the owner within 24 hours of their escape.
new text end

new text begin (b) An owner is liable for expenses of another person in
capturing, caring for, and returning farmed cervidae that have
left their enclosures if the person capturing the farmed
cervidae contacts the owner as soon as possible.
new text end

new text begin (c) If an owner is unwilling or unable to capture escaped
farmed cervidae, the commissioner of natural resources may
destroy the escaped farmed cervidae. The commissioner of
natural resources must allow the owner to attempt to capture the
escaped farmed cervidae prior to destroying the farmed
cervidae. Farmed cervidae that are not captured by 24 hours
after escape may be destroyed.
new text end

new text begin Subd. 2. new text end

new text begin Wild cervidae inside confinement area. new text end

new text begin An owner
or an employee or agent under the direction of the owner must
destroy wild cervidae found within the owner's farmed cervidae
confinement area. The owner, employee, or agent must report the
wild cervidae destroyed to a conservation officer or an employee
of the Department of Natural Resources, Division of Wildlife,
within 24 hours. The wild cervidae must be disposed of as
prescribed by the commissioner of natural resources.
new text end

new text begin Subd. 3. new text end

new text begin Farming in native elk area. new text end

new text begin A person may not
raise farmed red deer in the native elk area without written
approval of the commissioner of natural resources. The native
elk area is the area north of U.S. Highway 2 and west of U.S.
Highway 71 and trunk highway 72. The commissioner of natural
resources shall review the proposed farming operation and
approve with any condition or deny approval based on risks to
the native elk population.
new text end

new text begin Subd. 4. new text end

new text begin Fencing. new text end

new text begin Farmed cervidae must be confined in a
manner designed to prevent escape. All perimeter fences for
farmed cervidae must be at least 96 inches in height and be
constructed and maintained in a way that prevents the escape of
farmed cervidae or entry into the premises by free-roaming
cervidae.
new text end

new text begin Subd. 5. new text end

new text begin Disease control programs. new text end

new text begin Farmed cervidae are
subject to this chapter and the rules of the Board of Animal
Health in the same manner as other livestock and domestic
animals, including provisions related to importation and
transportation.
new text end

new text begin Subd. 6. new text end

new text begin Identification. new text end

new text begin (a) Farmed cervidae must be
identified by means approved by the Board of Animal Health. The
identification must be visible to the naked eye during daylight
under normal conditions at a distance of 50 yards. Newborn
animals must be identified before December 31 of the year in
which the animal is born or before movement from the premises,
whichever occurs first.
new text end

new text begin (b) The Board of Animal Health shall register farmed
cervidae. The owner must submit the registration request on
forms provided by the board. The forms must include sales
receipts or other documentation of the origin of the cervidae.
The board shall provide copies of the registration information
to the commissioner of natural resources upon request. The
owner must keep written records of the acquisition and
disposition of registered farmed cervidae.
new text end

new text begin Subd. 7. new text end

new text begin Inspection. new text end

new text begin The commissioner of agriculture and
the Board of Animal Health may inspect farmed cervidae, farmed
cervidae facilities, and farmed cervidae records. For each
herd, the owner or owners must, on or before January 1, pay an
annual inspection fee equal to $10 for each cervid in the herd
as reflected in the most recent inventory submitted to the Board
of Animal Health, up to a maximum fee of $100. The commissioner
of natural resources may inspect farmed cervidae, farmed
cervidae facilities, and farmed cervidae records with reasonable
suspicion that laws protecting native wild animals have been
violated and must notify the owner in writing at the time of the
inspection of the reason for the inspection and must inform the
owner in writing after the inspection of whether (1) the cause
of the inspection was unfounded; or (2) there will be an ongoing
investigation or continuing evaluation.
new text end

new text begin Subd. 8. new text end

new text begin Cervidae inspection account. new text end

new text begin A cervidae
inspection account is established in the state treasury. The
fees collected under this section and interest attributable to
money in the account must be deposited in the state treasury and
credited to the cervidae inspection account in the special
revenue fund. Money in the account, including interest earned,
is appropriated to the Board of Animal Health for the
administration and enforcement of this section.
new text end

new text begin Subd. 9. new text end

new text begin Contested case hearing. new text end

new text begin A person raising farmed
cervidae that is aggrieved with any decision regarding the
farmed cervidae may request a contested case hearing under
chapter 14.
new text end

new text begin Subd. 10. new text end

new text begin Mandatory registration. new text end

new text begin A person may not
possess live cervidae in Minnesota unless the person is
registered with the Board of Animal Health and meets all the
requirements for farmed cervidae under this section. Cervidae
possessed in violation of this subdivision may be seized and
destroyed by the commissioner of natural resources.
new text end

new text begin Subd. 11. new text end

new text begin Mandatory surveillance for chronic wasting
disease. new text end

new text begin (a) An inventory for each farmed cervidae herd must be
verified by an accredited veterinarian and filed with the Board
of Animal Health every 12 months.
new text end

new text begin (b) Movement of farmed cervidae from any premises to
another location must be reported to the Board of Animal Health
within 14 days of the movement on forms approved by the Board of
Animal Health.
new text end

new text begin (c) All animals from farmed cervidae herds that are over 16
months of age that die or are slaughtered must be tested for
chronic wasting disease.
new text end

new text begin Subd. 12. new text end

new text begin Importation. new text end

A person must not import cervidae
into the state from a herd that is infected or exposed to
chronic wasting disease or from a known chronic wasting disease
endemic area, as determined by the board. A person may import
cervidae into the state only from a herd that is not in a known
chronic wasting disease endemic area, as determined by the
board, and the herd has been subject to a state or provincial
approved chronic wasting disease monitoring program for at least
three years. Cervidae imported in violation of this section may
be seized and destroyed by the commissioner of natural resources.

new text begin Subd. 13. new text end

new text begin Rules. new text end

new text begin The Board of Animal Health shall adopt
rules as necessary to implement this section and to otherwise
provide for the control of cervidae diseases.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 67.

Minnesota Statutes 2004, section 38.01, is
amended to read:

38.01 COUNTY AGRICULTURAL SOCIETIES; FORMATION, POWERS.

new text begin (a) new text end An agricultural society or association may be
incorporated by citizens of any county, or two or more counties
jointly, but only one agricultural society shall be organized in
any county. An agricultural society may sue and be sued in its
corporate name; may adopt bylaws, rules, and regulations, alter
and amend the same; may purchase and hold, lease and control any
real or personal property deemed to promote the objects of the
society, and may rent, lease, sell, and convey the same. Any
income from the rental or lease of deleted text begin such deleted text end new text begin the new text end property may be used
for any or all of the following purposes: (1) Acquisition of
additional real property; (2) Construction of additional
buildings; or (3) Maintenance and care of the society's
property. This section shall not be construed to preclude the
continuance of any agricultural society now existing or the
granting of aid deleted text begin thereto deleted text end new text begin to the society new text end .

new text begin (b) new text end An agricultural society shall have jurisdiction and
control of the grounds upon which its fairs are held and of the
streets and deleted text begin grounds deleted text end adjacent deleted text begin thereto deleted text end new text begin grounds new text end during deleted text begin such deleted text end new text begin the
new text end fair, so far as may be necessary for deleted text begin such purpose deleted text end new text begin fair purposes,
and are exempt from local zoning ordinances throughout the year
as provided in section 38.16 new text end . deleted text begin At or before the time of holding
any fair, the agricultural society may appoint, in writing, as
many persons to act as special constables as necessary, for and
during the time of holding the same and for a reasonable time
prior and subsequent thereto. These constables, before entering
upon their duties, shall take and subscribe the usual oath of
office, endorsed upon their appointment, and have and exercise
upon the grounds of the society, and within one-half mile
thereof, all the power and authority of constables at common law
and, in addition thereto, may, within these limits, without
warrant, arrest any person found violating any laws of the
state, or any rule, regulation, or bylaw of the society, and
summarily remove the persons and property of such offenders from
the grounds and take them before any court of competent
jurisdiction to be dealt with according to law. Each such peace
officer shall wear an appropriate badge of office while acting
as such.
deleted text end

new text begin (c) new text end deleted text begin As an alternative to the appointment of special
constables, deleted text end The society may contract with the sheriff deleted text begin or deleted text end new text begin , new text end local
municipality new text begin , or security guard as defined in section 626.88 new text end to
provide the society with deleted text begin the same deleted text end police service deleted text begin it may secure
by appointing special constables deleted text end . A person providing police
service pursuant to deleted text begin such deleted text end a contract is not, by reason of the
contract, classified as an employee of the agricultural society
for any purpose other than the discharge of powers and duties
under the contract.

new text begin (d) new text end Any person who shall willfully violate any rule or
regulation made by deleted text begin such deleted text end new text begin agricultural new text end societies during the days
of a fair shall be guilty of a misdemeanor.

The provisions of this section supersede all special laws
on the same subject.

Sec. 68.

Minnesota Statutes 2004, section 38.16, is
amended to read:

38.16 EXEMPTION FROM ZONING ORDINANCES.

When lands lying within the corporate limits of towns or
cities are owned by a county or agricultural society and used
for agricultural fair purposes, the lands and the buildings now
or hereafter erected are exempt from the zoning, building, and
other ordinances of the town or city; provided, that no license
or permit need be obtained from, nor fee paid to, the town or
city in connection with the use of the lands. new text begin For the purposes
of this section, "agricultural fair purposes" includes the
management of property as provided in section 38.01, paragraph
(a).
new text end

Sec. 69.

Minnesota Statutes 2004, section 41A.09,
subdivision 2a, is amended to read:

Subd. 2a.

Definitions.

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

(a) "Ethanol" means fermentation ethyl alcohol derived from
agricultural products, including potatoes, cereal grains, cheese
whey, and sugar beets; forest products; or other renewable
resources, including residue and waste generated from the
production, processing, and marketing of agricultural products,
forest products, and other renewable resources, that:

(1) meets all of the specifications in ASTM specification
D4806-01; and

(2) is denatured as specified in Code of Federal
Regulations, title 27, parts 20 and 21.

(b) "Ethanol plant" means a plant at which ethanol is
produced.

(c) "Commissioner" means the commissioner of agriculture.

new text begin (d) "Rural economic infrastructure" means the development
of activities that will enhance the value of agricultural crop
or livestock commodities or by-products or waste from farming
operations through new and improved value-added conversion
processes and technologies, the development of more timely and
efficient infrastructure delivery systems, and the enhancement
of marketing opportunities. "Rural economic infrastructure"
also means land, buildings, structures, fixtures, and
improvements located or to be located in Minnesota and used or
operated primarily for the processing or the support of
production of marketable products from agricultural commodities
or wind energy produced in Minnesota.
new text end

Sec. 70.

Minnesota Statutes 2004, section 41A.09,
subdivision 3a, is amended to read:

Subd. 3a.

Ethanol producer payments.

(a) The
commissioner shall make cash payments to producers of ethanol
located in the state that have begun production new text begin at a specific
location new text end by June 30, 2000. For the purpose of this subdivision,
an entity that holds a controlling interest in more than one
ethanol plant is considered a single producer. The amount of
the payment for each producer's annual production, except as
provided in paragraph (c), is 20 cents per gallon for each
gallon of ethanol produced new text begin at a specific location new text end on or before
June 30, 2000, or ten years after the start of production,
whichever is later. Annually, within 90 days of the end of its
fiscal year, an ethanol producer receiving payments under this
subdivision must file a disclosure statement on a form provided
by the commissioner. The initial disclosure statement must
include a summary description of the organization of the
business structure of the claimant, a listing of the percentages
of ownership by any person or other entity with an ownership
interest of five percent or greater, and a copy of its annual
audited financial statements, including the auditor's report and
footnotes. The disclosure statement must include information
demonstrating what percentage of the entity receiving payments
under this section is owned by farmers or other entities
eligible to farm or own agricultural land in Minnesota under the
provisions of section 500.24. Subsequent annual reports must
reflect noncumulative changes in ownership of ten percent or
more of the entity. The report need not disclose the identity
of the persons or entities eligible to farm or own agricultural
land with ownership interests, individuals residing within 30
miles of the plant, or of any other entity with less than ten
percent ownership interest, but the claimant must retain
information within its files confirming the accuracy of the data
provided. This data must be made available to the commissioner
upon request. Not later than the 15th day of February in each
year the commissioner shall deliver to the chairs of the
standing committees of the senate and the house of
representatives that deal with agricultural policy and
agricultural finance issues an annual report summarizing
aggregated data from plants receiving payments under this
section during the preceding calendar year. Audited financial
statements and notes and disclosure statements submitted to the
commissioner are nonpublic data under section 13.02, subdivision
9. Notwithstanding the provisions of chapter 13 relating to
nonpublic data, summaries of the submitted audited financial
reports and notes and disclosure statements will be contained in
the report to the committee chairs and will be public data.

(b) No payments shall be made for ethanol production that
occurs after June 30, 2010. new text begin A producer of ethanol shall not
transfer the producer's eligibility for payments under this
section to an ethanol plant at a different location.
new text end

(c) If the level of production at an ethanol plant
increases due to an increase in the production capacity of the
plant, the payment under paragraph (a) applies to the additional
increment of production until ten years after the increased
production began. Once a plant's production capacity reaches
15,000,000 gallons per year, no additional increment will
qualify for the payment.

(d) Total payments under paragraphs (a) and (c) to a
producer in a fiscal year may not exceed $3,000,000.

(e) By the last day of October, January, April, and July,
each producer shall file a claim for payment for ethanol
production during the preceding three calendar months. A
producer that files a claim under this subdivision shall include
a statement of the producer's total ethanol production in
Minnesota during the quarter covered by the claim. For each
claim and statement of total ethanol production filed under this
subdivision, the volume of ethanol production must be examined
by an independent certified public accountant in accordance with
standards established by the American Institute of Certified
Public Accountants.

(f) Payments shall be made November 15, February 15, May
15, and August 15. A separate payment shall be made for each
claim filed. Except as provided in paragraph (g), the total
quarterly payment to a producer under this paragraph may not
exceed $750,000.

(g) Notwithstanding the quarterly payment limits of
paragraph (f), the commissioner shall make an additional payment
in the fourth quarter of each fiscal year to ethanol producers
for the lesser of: (1) 20 cents per gallon of production in the
fourth quarter of the year that is greater than 3,750,000
gallons; or (2) the total amount of payments lost during the
first three quarters of the fiscal year due to plant outages,
repair, or major maintenance. Total payments to an ethanol
producer in a fiscal year, including any payment under this
paragraph, must not exceed the total amount the producer is
eligible to receive based on the producer's approved production
capacity. The provisions of this paragraph apply only to
production losses that occur in quarters beginning after
December 31, 1999.

(h) The commissioner shall reimburse ethanol producers for
any deficiency in payments during earlier quarters if the
deficiency occurred because new text begin of unallotment or because
new text end appropriated money was insufficient to make timely payments in
the full amount provided in paragraph (a). Notwithstanding the
quarterly or annual payment limitations in this subdivision, the
commissioner shall begin making payments for earlier
deficiencies in each fiscal year that appropriations for ethanol
payments exceed the amount required to make eligible scheduled
payments. Payments for earlier deficiencies must continue until
the deficiencies for each producer are paid in full.

new text begin (i) The commissioner may make direct payments to producers
of rural economic infrastructure with any amount of the annual
appropriation for ethanol producer payments and rural economic
infrastructure that is in excess of the amount required to make
scheduled ethanol producer payments and deficiency payments
under paragraphs (a) to (h).
new text end

Sec. 71.

Minnesota Statutes 2004, section 41A.09, is
amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Motor vehicles; ethanol combustion efficiency
grants. new text end

new text begin From within the appropriation for each fiscal year to
the ethanol development program under this section, or from
other appropriated money, the commissioner shall make up to two
grants, each in an amount not exceeding $50,000, to qualified
applicants proposing to do research on, but not limited to,
ethanol's effect on fuel system materials compatibility and ways
to improve the energy efficiency of ethanol fuel blends in motor
vehicles while meeting all requirements for control of tailpipe
emissions. A grant recipient may receive funding for no more
than two consecutive years. A research project must be matched
by $2 of nonstate money for each $3 of state grant money.
new text end

Sec. 72.

Minnesota Statutes 2004, section 41A.09, is
amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Guidelines. new text end

new text begin The commissioner shall establish
guidelines not subject to chapter 14 for the submission and
review of applications and the awarding of grants under
subdivision 9.
new text end

Sec. 73.

Minnesota Statutes 2004, section 41B.046,
subdivision 5, is amended to read:

Subd. 5.

Loans.

(a) The authority may participate in a
stock loan with an eligible lender to a farmer who is eligible
under subdivision 4. Participation is limited to 45 percent of
the principal amount of the loan or $40,000, whichever is less.
The interest rates and repayment terms of the authority's
participation interest may differ from the interest rates and
repayment terms of the lender's retained portion of the loan,
but the authority's interest rate must not exceed 50 percent of
the lender's interest rate.

(b) No more than 95 percent of the purchase price of the
stock may be financed under this program.

(c) Security for stock loans must be the stock purchased, a
personal note executed by the borrower, and whatever other
security is required by the eligible lender or the authority.

(d) The authority may impose a reasonable nonrefundable
application fee for each application for a stock loan. The
authority may review the fee annually and make adjustments as
necessary. The application fee is initially $50. Application
fees received by the authority must be deposited in the
deleted text begin value-added agricultural product revolving fund deleted text end new text begin revolving loan
account established in section 41B.06 new text end .

(e) Stock loans under this program will be made using money
in the deleted text begin value-added agricultural product deleted text end revolving deleted text begin fund deleted text end new text begin loan
account new text end established deleted text begin under subdivision 3 deleted text end new text begin in section 41B.06 new text end .

(f) The authority may not grant stock loans in a cumulative
amount exceeding $2,000,000 for the financing of stock purchases
in any one cooperative.

new text begin (g) Repayments of financial assistance under this section,
including principal and interest, must be deposited into the
revolving loan account established in section 41B.06.
new text end

Sec. 74.

Minnesota Statutes 2004, section 41B.049,
subdivision 2, is amended to read:

Subd. 2.

deleted text begin revolving fund deleted text end new text begin deposit of repayments new text end .

deleted text begin There is
established in the state treasury a revolving fund, which is
eligible to receive appropriations and the transfer of funds
from other services. deleted text end All repayments of financial assistance
granted under subdivision 1, including principal and interest,
must be deposited into deleted text begin this fund. Interest earned on money in
the fund accrues to the fund, and money in the fund is
appropriated to the commissioner of agriculture for purposes of
the manure digester loan program, including costs incurred by
the authority to establish and administer the program deleted text end new text begin the
revolving loan account established in section 41B.06 new text end .

Sec. 75.

Minnesota Statutes 2004, section 41B.049,
subdivision 4, is amended to read:

Subd. 4.

Loans.

(a) The authority may make a direct loan
or participate in a loan with an eligible lender to a farmer who
is eligible under subdivision 3. deleted text begin The interest rates and
deleted text end Repayment terms of the authority's participation interest may
differ from deleted text begin the interest rates and deleted text end repayment terms of the
lender's retained portion of the loan. deleted text begin The authority's interest
rate for a direct loan or a loan participation must not exceed
four percent. deleted text end Loans made under this section deleted text begin before July 1,
2003, deleted text end must be no-interest loans.

(b) Application for a direct loan or a loan participation
must be made on forms prescribed by the authority.

(c) Standards for loan amortization shall be set by the
Rural Finance Authority not to exceed ten years.

(d) Security for the loans must be a personal note executed
by the borrower and whatever other security is required by the
eligible lender or the authority.

(e) No loan proceeds may be used to refinance a debt
existing prior to application.

(f) The authority may impose a reasonable nonrefundable
application fee for each application for a direct loan or a loan
participation. The authority may review the application fees
annually and make adjustments as necessary. The application fee
is initially set at $100 for a loan under subdivision 1. The
fees received by the authority must be deposited in the
revolving deleted text begin fund created in subdivision 2 deleted text end new text begin loan account established
in section 41B.06 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
for any loan made on or after July 1, 2003.
new text end

Sec. 76.

new text begin [41B.055] LIVESTOCK EQUIPMENT PILOT LOAN
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The authority must
establish and implement a livestock equipment pilot loan program
to help finance the first purchase of livestock-related
equipment and make livestock facilities improvements.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin Notwithstanding section 41B.03, to
be eligible for this program a borrower must:
new text end

new text begin (1) be a resident of Minnesota or general partnership or a
family farm corporation, authorized farm corporation, family
farm partnership, or authorized farm partnership as defined in
section 500.24, subdivision 2;
new text end

new text begin (2) be the principal operator of a livestock farm;
new text end

new text begin (3) have a total net worth, including assets and
liabilities of the borrower's spouse and dependents, no greater
than the amount stipulated in section 41B.03, subdivision 3;
new text end

new text begin (4) demonstrate an ability to repay the loan; and
new text end

new text begin (5) hold an appropriate feedlot registration or be using
the loan under this program to meet registration requirements.
In addition to the requirements in clauses (1) to (5),
preference must be given to applicants who have farmed less than
ten years as evidenced by their filing of schedule F in their
federal tax returns.
new text end

new text begin Subd. 3. new text end

new text begin Loans. new text end

new text begin (a) The authority may participate in a
livestock equipment loan equal to 90 percent of the purchased
equipment value with an eligible lender to a farmer who is
eligible under subdivision 2. Participation is limited to 45
percent of the principal amount of the loan or $40,000,
whichever is less. The interest rates and repayment terms of
the authority's participation interest may differ from the
interest rates and repayment terms of the lender's retained
portion of the loan, but the authority's interest rate must not
exceed three percent. The authority may review the interest
annually and make adjustments as necessary.
new text end

new text begin (b) Standards for loan amortization must be set by the
rural finance authority and must not exceed seven years.
new text end

new text begin (c) Security for a livestock equipment loan must be a
personal note executed by the borrower and whatever other
security is required by the eligible lender or the authority.
new text end

new text begin (d) Refinancing of existing debt is not an eligible purpose.
new text end

new text begin (e) The authority may impose a reasonable, nonrefundable
application fee for a livestock equipment loan. The authority
may review the fee annually and make adjustments as necessary.
The initial application fee is $50. Application fees received
by the authority must be deposited in the revolving loan account
established in section 41B.06.
new text end

new text begin (f) Loans under this program must be made using money in
the revolving loan account established in section 41B.06.
new text end

new text begin Subd. 4. new text end

new text begin Eligible expenditures. new text end

new text begin Money may be used for
loans for the acquisition of equipment for animal housing,
confinement, animal feeding, milk production, and waste
management, including the following, if related to animal
husbandry:
new text end

new text begin (1) fences;
new text end

new text begin (2) watering facilities;
new text end

new text begin (3) feed storage and handling equipment;
new text end

new text begin (4) milking parlors;
new text end

new text begin (5) milking equipment;
new text end

new text begin (6) scales;
new text end

new text begin (7) milk storage and cooling facilities;
new text end

new text begin (8) manure pumping and storage facilities; and
new text end

new text begin (9) capital investment in pasture.
new text end

Sec. 77.

new text begin [41B.06] RURAL FINANCE AUTHORITY REVOLVING LOAN
ACCOUNT.
new text end

new text begin There is established in the rural finance administration
fund a rural finance authority revolving loan account that is
eligible to receive appropriations and the transfer of loan
funds from other programs. All repayments of financial
assistance granted from this account, including principal and
interest, must be deposited into this account. Interest earned
on money in the account accrues to the account, and the money in
the account is appropriated to the commissioner of agriculture
for purposes of the rural finance authority livestock equipment,
methane digester, and value-added agricultural product loan
programs, including costs incurred by the authority to establish
and administer the programs.
new text end

Sec. 78.

Minnesota Statutes 2004, section 116.07,
subdivision 7a, is amended to read:

Subd. 7a.

Notice of application for livestock feedlot
permit.

(a) A person who applies to the Pollution Control
Agency or a county board for a permit to construct or expand a
feedlot with a capacity of 500 animal units or more shall, not
less than 20 business days before the date on which a permit is
issued, provide notice to each resident and each owner of real
property within 5,000 feet of the perimeter of the proposed
feedlot. The notice may be delivered by first class mail, in
person, or by the publication in a newspaper of general
circulation within the affected area and must include
information on the type of livestock and the proposed capacity
of the feedlot. Notification under this subdivision is
satisfied under an equal or greater notification requirement of
a county deleted text begin conditional use deleted text end new text begin or town new text end permit new text begin process new text end . new text begin A person must
also send a copy of the notice by first class mail to the clerk
of the town in which the feedlot is proposed not less than 20
business days before the date on which a permit is issued.
new text end

(b) The agency or a county board must verify that notice
was provided as required under paragraph (a) prior to issuing a
permit.

Sec. 79.

Minnesota Statutes 2004, section 116O.09,
subdivision 1a, is amended to read:

Subd. 1a.

Board of directors.

The board of directors of
the Agricultural Utilization Research Institute is comprised of:

(1) the chairs of the senate and the house of
representatives standing committees with jurisdiction over
agriculture finance or the chair's designee;

(2) two representatives of statewide farm organizations;

(3) two representatives of agribusiness; and

(4) three representatives of the commodity promotion
councils.

deleted text begin A member of the board of directors under clauses (2) to
(4), including a member serving on July 1, 2003, may serve for a
maximum of two three-year terms. The board's compensation is
governed by section 15.0575, subdivision 3.
deleted text end

Sec. 80.

new text begin [156.075] REQUIREMENT FOR EQUINE TEETH
FLOATERS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section
the following terms have the meanings given them.
new text end

new text begin (a) "Equine teeth floating" means:
new text end

new text begin (1) removal of enamel points from teeth with handheld,
nonmotorized, non-air-powered files or rasps;
new text end

new text begin (2) reestablishing normal molar table angles and freeing up
lateral excursion and other normal movements of the mandible;
new text end

new text begin (3) shaping the lingual aspect of the lower arcades and the
buccal aspect of the upper arcades to a rounded smooth surface;
and
new text end

new text begin (4) removing points from the buccal aspect of the upper
arcade and the lingual aspect of the lower arcade.
new text end

new text begin (b) "Indirect supervision" means a veterinarian must be
available by telephone or other form of immediate
communication. The veterinarian must be currently licensed
under this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Equine teeth floating services. new text end

new text begin (a) A person
may perform equine teeth floating services after submitting to
the board the following:
new text end

new text begin (1) proof of current certification from the International
Association of Equine Dentistry or other professional equine
dentistry association as determined by the board; and
new text end

new text begin (2) a written statement signed by a supervising
veterinarian experienced in large animal medicine that the
applicant will be under direct or indirect supervision of the
veterinarian when floating equine teeth.
new text end

new text begin (b) The board must waive the requirement in paragraph (a),
clause (1), and allow a person to perform equine teeth floating
services if the person provides satisfactory evidence of being
actively engaged in equine teeth floating for at least ten of
the past 15 years and has generated at least $5,000 annually in
personal income from this activity.
new text end

Sec. 81.

Minnesota Statutes 2004, section 168.27, is
amended by adding a subdivision to read:

new text begin Subd. 29. new text end

new text begin Flexible fuel vehicle notice. new text end

new text begin At the time a
dealer delivers a flexible fuel vehicle, the dealer must provide
written notice to the consumer that the vehicle is capable of
using alternative fuels, including E85 fuel.
new text end

Sec. 82.

Minnesota Statutes 2004, section 169.87,
subdivision 4, is amended to read:

Subd. 4.

Vehicle transporting milk.

Until June 1,
deleted text begin 2003 deleted text end new text begin 2007 new text end , a weight restriction imposed under subdivision 1 by
the commissioner of transportation or a local road authority, or
imposed by subdivision 2, does not apply to a vehicle
transporting milk from the point of production to the point of
first processing if, at the time the weight restriction is
exceeded, the vehicle is carrying milk loaded at only one point
of production. This subdivision does not authorize a vehicle
described in this subdivision to exceed a weight restriction of
five tons per axle by more than two tons per axle.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 83.

Minnesota Statutes 2004, section 174.52,
subdivision 5, is amended to read:

Subd. 5.

Grant procedures and criteria.

The commissioner
shall establish procedures for statutory or home rule charter
cities, towns, and counties to apply for grants or loans from
the fund and criteria to be used to select projects for funding.
The commissioner shall establish these procedures and criteria
in consultation with representatives appointed by the
Association of Minnesota Counties, League of Minnesota
Cities, deleted text begin and deleted text end Minnesota deleted text begin Township Officers Association deleted text end new text begin Association
of Townships, and the appropriate state agency as needed new text end . The
criteria for determining project priority and the amount of a
grant or loan must be based upon consideration of:

(1) the availability of other state, federal, and local
funds;

(2) the regional significance of the route;

(3) effectiveness of the proposed project in eliminating a
transportation system deficiency;

(4) the number of persons who will be positively impacted
by the project;

(5) the project's contribution to other local, regional, or
state economic development or redevelopment efforts new text begin including
livestock and other agricultural operations permitted after the
effective date of this section new text end ; and

(6) ability of the local unit of government to adequately
provide for the safe operation and maintenance of the facility
upon project completion.

Sec. 84.

Minnesota Statutes 2004, section 223.17,
subdivision 3, is amended to read:

Subd. 3.

Grain buyers and storage account; fees.

The
commissioner shall set the fees for inspections under sections
223.15 to 223.22 at levels necessary to pay the expenses of
administering and enforcing sections 223.15 to 223.22.

The fee for any license issued or renewed after June 30,
deleted text begin 2001 deleted text end new text begin 2005 new text end , shall be set according to the following schedule:

(a) deleted text begin $125 deleted text end new text begin $140 new text end plus deleted text begin $100 deleted text end new text begin $110 new text end for each additional location
for grain buyers whose gross annual purchases are less than
$100,000;

(b) deleted text begin $250 deleted text end new text begin $275 new text end plus deleted text begin $100 deleted text end new text begin $110 new text end for each additional location
for grain buyers whose gross annual purchases are at least
$100,000, but not more than $750,000;

(c) deleted text begin $375 deleted text end new text begin $415 new text end plus deleted text begin $200 deleted text end new text begin $220 new text end for each additional location
for grain buyers whose gross annual purchases are more than
$750,000 but not more than $1,500,000;

(d) deleted text begin $500 deleted text end new text begin $550 new text end plus deleted text begin $200 deleted text end new text begin $220 new text end for each additional location
for grain buyers whose gross annual purchases are more than
$1,500,000 but not more than $3,000,000; and

(e) deleted text begin $625 deleted text end new text begin $700 new text end plus deleted text begin $200 deleted text end new text begin $220 new text end for each additional location
for grain buyers whose gross annual purchases are more than
$3,000,000.

new text begin A penalty amount not to exceed ten percent of the fees due
may be imposed by the commissioner for each month for which the
fees are delinquent.
new text end

There is created the grain buyers and storage account in
the agricultural fund. Money collected pursuant to sections
223.15 to 223.19 shall be paid into the state treasury and
credited to the grain buyers and storage account and is
appropriated to the commissioner for the administration and
enforcement of sections 223.15 to 223.22.

Sec. 85.

Minnesota Statutes 2004, section 223.17,
subdivision 6, is amended to read:

Subd. 6.

Financial statements.

For the purpose of fixing
or changing the amount of a required bond or for any other
proper reason, the commissioner shall require an annual
financial statement from a licensee which has been prepared in
accordance with generally accepted accounting principles and
which meets the following requirements:

(a) The financial statement shall include, but not be
limited to the following: (1) a balance sheet; (2) a statement
of income (profit and loss); (3) a statement of retained
earnings; (4) a statement of changes in financial position; and
(5) a statement of the dollar amount of grain purchased in the
previous fiscal year of the grain buyer.

(b) The financial statement shall be accompanied by a
reviewed financial statement or audit prepared by an independent
public accountant or a compilation report prepared by a grain
commission firm approved by the commissioner, in accordance with
standards established by the American Institute of Certified
Public Accountants. new text begin Grain buyers purchasing less than 150,000
bushels of grain per calendar year may submit a financial
statement prepared by a public accountant who is not an employee
or a relative within the third degree of kindred according to
civil law.
new text end

(c) The financial statement shall be accompanied by a
certification by the chief executive officer or the chief
executive officer's designee of the licensee, under penalty of
perjury, that the financial statement accurately reflects the
financial condition of the licensee for the period specified in
the statement.

Only one financial statement must be filed for a chain of
warehouses owned or operated as a single business entity, unless
otherwise required by the commissioner. Any grain buyer having
a net worth in excess of $500,000,000 need not file the
financial statement required by this subdivision but must
provide the commissioner with a certified net worth statement.
All financial statements filed with the commissioner are private
or nonpublic data as provided in section 13.02.

Sec. 86.

Minnesota Statutes 2004, section 231.16, is
amended to read:

231.16 WAREHOUSE OPERATOR OR HOUSEHOLD GOODS WAREHOUSE
OPERATOR TO OBTAIN LICENSE.

A warehouse operator or household goods warehouse operator
must be licensed annually by the department. The department
shall prescribe the form of the written application. If the
department approves the license application and the applicant
files with the department the necessary bond, in the case of
household goods warehouse operators, or proof of warehouse
operators legal liability insurance coverage in an amount of
$50,000 or more, as provided for in this chapter, the department
shall issue the license upon payment of the license fee required
in this section. A warehouse operator or household goods
warehouse operator to whom a license is issued shall pay a fee
as follows:
Building square footage used for public storage

(1) 5,000 or less deleted text begin $100 deleted text end new text begin $110
new text end (2) 5,001 to 10,000 deleted text begin $200 deleted text end new text begin $220
new text end (3) 10,001 to 20,000 deleted text begin $300 deleted text end new text begin $330
new text end (4) 20,001 to 100,000 deleted text begin $400 deleted text end new text begin $440
new text end (5) 100,001 to 200,000 deleted text begin $500 deleted text end new text begin $550
new text end (6) over 200,000 deleted text begin $600 deleted text end new text begin $660
new text end

new text begin A penalty amount not to exceed ten percent of the fees due
may be imposed by the commissioner for each month for which the
fees are delinquent.
new text end

Fees collected under this chapter must be paid into the
grain buyers and storage account established in section 232.22.

The license must be renewed annually on or before July 1,
and always upon payment of the full license fee required in this
section. No license shall be issued for any portion of a year
for less than the full amount of the license fee required in
this section. Each license obtained under this chapter must be
publicly displayed in the main office of the place of business
of the warehouse operator or household goods warehouse operator
to whom it is issued. The license authorizes the warehouse
operator or household goods warehouse operator to carry on the
business of warehousing only in the one city or town named in
the application and in the buildings therein described. The
department, without requiring an additional bond and license,
may issue permits from time to time to any warehouse operator
already duly licensed under the provisions of this chapter to
operate an additional warehouse in the same city or town for
which the original license was issued during the term thereof,
upon the filing an application for a permit in the form
prescribed by the department.

A license may be refused for good cause shown and revoked
by the department for violation of law or of any rule adopted by
the department, upon notice and after hearing.

Sec. 87.

Minnesota Statutes 2004, section 232.22,
subdivision 3, is amended to read:

Subd. 3.

Fees; grain buyers and storage account.

There
is created in the agricultural fund an account known as the
grain buyers and storage account. The commissioner shall set
the fees for inspections, certifications and licenses under
sections 232.20 to 232.25 at levels necessary to pay the costs
of administering and enforcing sections 232.20 to 232.25. All
money collected pursuant to sections 232.20 to 232.25 and
chapters 233 and 236 shall be paid by the commissioner into the
state treasury and credited to the grain buyers and storage
account and is appropriated to the commissioner for the
administration and enforcement of sections 232.20 to 232.25 and
chapters 233 and 236. All money collected pursuant to chapter
231 shall be paid by the commissioner into the grain buyers and
storage account and is appropriated to the commissioner for the
administration and enforcement of chapter 231.

new text begin The fees for a license to store grain are as follows:
new text end

new text begin (a) For a license to store grain, $110 for each home rule
charter or statutory city or town in which a public grain
warehouse is operated.
new text end

new text begin (b) A person with a license to store grain in a public
grain warehouse is subject to an examination fee for each
licensed location, based on the following schedule for one
examination:
new text end

new text begin Bushel Capacity new text end new text begin Examination Fee
Less than 150,001 new text end new text begin $300
150,001 to 250,000 new text end new text begin $425
250,001 to 500,000 new text end new text begin $545
500,001 to 750,000 new text end new text begin $700
750,001 to 1,000,000 new text end new text begin $865
1,000,001 to 1,200,000 new text end new text begin $1,040
1,200,001 to 1,500,000 new text end new text begin $1,205
1,500,001 to 2,000,000 new text end new text begin $1,380
More than 2,000,000 new text end new text begin $1,555
new text end

new text begin (c) The fee for the second examination is $55 per hour per
examiner for warehouse operators who choose to have it performed
by the commissioner.
new text end

new text begin (d) A penalty amount not to exceed ten percent of the fees
due may be imposed by the commissioner for each month for which
the fees are delinquent.
new text end

Sec. 88.

Minnesota Statutes 2004, section 236.02,
subdivision 4, is amended to read:

Subd. 4.

Fees.

new text begin The license fee is $140 for each home
rule charter or statutory city or town in which a private grain
warehouse is operated and which will be used to operate a grain
bank. A penalty amount not to exceed ten percent of the fees
due may be imposed by the commissioner for each month for which
the fees are delinquent. new text end The license fee must be set by the
commissioner in an amount sufficient to cover the costs of
administering and enforcing this chapter. Fees collected under
this chapter must be paid into the grain buyers and storage
account established in section 232.22.

Sec. 89.

Minnesota Statutes 2004, section 327.23,
subdivision 2, is amended to read:

Subd. 2.

Manufactured home park.

new text begin (a) new text end The term
"manufactured home park" shall not be construed to include new text begin :
new text end

new text begin (1) new text end manufactured homes, buildings, tents or other
structures temporarily maintained by any individual or company
on premises associated with a work project and used exclusively
to house labor or other personnel occupied in such work project new text begin ;
or
new text end

new text begin (2) two or fewer manufactured homes maintained by an
individual or company on premises associated with an
agricultural operation in an area zoned agricultural, provided
the homes:
new text end

new text begin (i) are located within 100 yards of an existing residence
on those premises;
new text end

new text begin (ii) are used exclusively to house either family of the
individual, at least one of whose members is engaged in
agricultural work on the premises, or agricultural labor as
defined in section 3121(g) of the Internal Revenue Code; and
new text end

new text begin (iii) meet the requirements of sections 327.31 to 327.35,
and Minnesota Rules, chapter 1350, and parts 4630.0600, subpart
1; 4630.0700; 4630.1200; 4630.3500; and 4715.0310 new text end .

new text begin (b) new text end The deleted text begin state deleted text end Department of Health may by rule prescribe
such sanitary facilities as it may deem necessary to provide for
the sanitation of such structures and the safety of the
occupants thereof.

Sec. 90.

Minnesota Statutes 2004, section 394.25,
subdivision 3c, is amended to read:

Subd. 3c.

Feedlot zoning ordinances.

(a) A county
proposing to adopt a new feedlot ordinance or amend an existing
feedlot ordinance must notify the Pollution Control Agency and
commissioner of agriculture at the beginning of the process new text begin , no
later than the notice of the first hearing proposing to adopt or
amend an ordinance purporting to address feedlots new text end .

(b) Prior to final approval of a feedlot ordinance, a
county board may submit a copy of the proposed ordinance to the
Pollution Control Agency and to the commissioner of agriculture
and request review, comment, and deleted text begin preparation of deleted text end new text begin recommendations
on the environmental and agricultural effects from specific
provisions in the ordinance.
new text end

new text begin (c) The agencies' response to the county may include:
new text end

new text begin (1) any recommendations for improvements in the ordinance;
and
new text end

new text begin (2) the legal, social, economic, or scientific
justification for each recommendation under clause (1).
new text end

new text begin (d) At the request of the county board, the county must
prepare new text end a report on the deleted text begin environmental and agricultural deleted text end new text begin economic
new text end effects from specific provisions in the ordinance. new text begin Economic
analysis must state whether the ordinance will affect the local
economy and describe the kinds of businesses affected and the
projected impact the proposal will have on those businesses. To
assist the county, the commissioner of agriculture, in
cooperation with the Department of Employment and Economic
Development, must develop a template for measuring local
economic effects and make it available to the county. The
report must be submitted to the commissioners of employment and
economic development and agriculture along with the proposed
ordinance.
new text end

deleted text begin (c) The report may include:
deleted text end

deleted text begin (1) any recommendations for improvements in the ordinance;
and
deleted text end

deleted text begin (2) the legal, social, economic, or scientific
justification for each recommendation under clause (1).
deleted text end

deleted text begin (d) deleted text end new text begin (e) new text end A local ordinance that contains a setback for new
feedlots from existing residences must also provide for a new
residence setback from existing feedlots located in areas zoned
agricultural at the same distances and conditions specified in
the setback for new feedlots, unless the new residence is built
to replace an existing residence. A county may grant a variance
from this requirement under section 394.27, subdivision 7.

Sec. 91.

Minnesota Statutes 2004, section 462.355,
subdivision 4, as amended by Laws 2005, chapter 41, section 17,
is amended to read:

Subd. 4.

Interim ordinance.

new text begin (a) new text end If a municipality is
conducting studies or has authorized a study to be conducted or
has held or has scheduled a hearing for the purpose of
considering adoption or amendment of a comprehensive plan or
official controls as defined in section 462.352, subdivision 15,
or if new territory for which plans or controls have not been
adopted is annexed to a municipality, the governing body of the
municipality may adopt an interim ordinance applicable to all or
part of its jurisdiction for the purpose of protecting the
planning process and the health, safety and welfare of its
citizens. The interim ordinance may regulate, restrict, or
prohibit any use, development, or subdivision within the
jurisdiction or a portion thereof for a period not to exceed one
year from the date it is effective.

new text begin (b) If a proposed interim ordinance purports to regulate,
restrict, or prohibit activities relating to livestock
production, a public hearing must be held following a ten-day
notice given by publication in a newspaper of general
circulation in the municipality before the interim ordinance
takes effect.
new text end

new text begin (c) new text end The period of an interim ordinance applicable to an
area that is affected by a city's master plan for a municipal
airport may be extended for such additional periods as the
municipality may deem appropriate, not exceeding a total
additional period of 18 months. In all other cases, no interim
ordinance may halt, delay, or impede a subdivision that has been
given preliminary approval, nor may any interim ordinance extend
the time deadline for agency action set forth in section 15.99
with respect to any application filed prior to the effective
date of the interim ordinance. The governing body of the
municipality may extend the interim ordinance after a public
hearing and written findings have been adopted based upon one or
more of the conditions in clause (1), (2), or (3). The public
hearing must be held at least 15 days but not more than 30 days
before the expiration of the interim ordinance, and notice of
the hearing must be published at least ten days before the
hearing. The interim ordinance may be extended for the
following conditions and durations, but, except as provided in
clause (3), an interim ordinance may not be extended more than
an additional 18 months:

(1) up to an additional 120 days following the receipt of
the final approval or review by a federal, state, or
metropolitan agency when the approval is required by law and the
review or approval has not been completed and received by the
municipality at least 30 days before the expiration of the
interim ordinance;

(2) up to an additional 120 days following the completion
of any other process required by a state statute, federal law,
or court order, when the process is not completed at least 30
days before the expiration of the interim ordinance; or

(3) up to an additional one year if the municipality has
not adopted a comprehensive plan under this section at the time
the interim ordinance is enacted.

Sec. 92.

Minnesota Statutes 2004, section 462.357, is
amended by adding a subdivision to read:

new text begin Subd. 1g. new text end

new text begin Feedlot zoning controls. new text end

new text begin (a) A municipality
proposing to adopt a new feedlot zoning control or to amend an
existing feedlot zoning control must notify the Pollution
Control Agency and commissioner of agriculture at the beginning
of the process, no later than the date notice is given of the
first hearing proposing to adopt or amend a zoning control
purporting to address feedlots.
new text end

new text begin (b) Prior to final approval of a feedlot zoning control,
the governing body of a municipality may submit a copy of the
proposed zoning control to the Pollution Control Agency and to
the commissioner of agriculture and request review, comment, and
recommendations on the environmental and agricultural effects
from specific provisions in the ordinance.
new text end

new text begin (c) The agencies' response to the municipality may include:
new text end

new text begin (1) any recommendations for improvements in the ordinance;
and
new text end

new text begin (2) the legal, social, economic, or scientific
justification for each recommendation under clause (1).
new text end

new text begin (d) At the request of the municipality's governing body,
the municipality must prepare a report on the economic effects
from specific provisions in the ordinance. Economic analysis
must state whether the ordinance will affect the local economy
and describe the kinds of businesses affected and the projected
impact the proposal will have on those businesses. To assist
the municipality, the commissioner of agriculture, in
cooperation with the Department of Employment and Economic
Development, must develop a template for measuring local
economic effects and make it available to the municipality. The
report must be submitted to the commissioners of employment and
economic development and agriculture along with the proposed
ordinance.
new text end

new text begin (e) A local ordinance that contains a setback for new
feedlots from existing residences must also provide for a new
residence setback from existing feedlots located in areas zoned
agricultural at the same distances and conditions specified in
the setback for new feedlots, unless the new residence is built
to replace an existing residence. A municipality may grant a
variance from this requirement under section 462.358,
subdivision 6.
new text end

Sec. 93. new text begin TRANSFER OF FUNDS; DEPOSIT OF REPAYMENTS.
new text end

new text begin The remaining balances in the revolving accounts in
Minnesota Statutes, sections 41B.046 and 41B.049, that are
dedicated to rural finance authority loan programs under those
sections, are transferred to the revolving loan account
established in Minnesota Statutes, section 41B.06, on the
effective date of this section. All future receipts from
value-added agricultural product loans and methane digester
loans originated under Minnesota Statutes, sections 41B.046 and
41B.049, must be deposited in the revolving loan account
established in Minnesota Statutes, section 41B.06.
new text end

Sec. 94. new text begin AGRICULTURAL NUTRIENT TASK FORCE.
new text end

new text begin (a) There is created an Agricultural Nutrient Task Force
consisting of two members of the senate appointed by the chair
of the senate Committee on Agriculture, Veterans and Gaming; two
members of the house of representatives appointed by the chair
of the house Committee on Agriculture and Rural Development; the
commissioner of agriculture or the commissioner's designee; and
15 public members appointed by the commissioner. The public
members must be broadly representative of the diverse range of
persons interested in and knowledgeable about agricultural soil
nutrients and must include representatives of agricultural crop
growers, fertilizer retailers, soil nutrient consultants, and
agricultural soil and nutrient researchers. Public members of
the task force must serve without compensation or reimbursement
of personal expenses.
new text end

new text begin (b) The commissioner of agriculture must convene the first
meeting of the task force and must provide office support
services to the task force as needed. The task force may
determine the date, location, and agenda of additional meetings.
new text end

new text begin (c) The task force must review and make recommendations on
at least the following topics and practices:
new text end

new text begin (1) the need for research, education, and training in the
selection and application of agricultural fertilizer and soil
nutrients in the state;
new text end

new text begin (2) the imposition of a tonnage fee on all agricultural
fertilizer applied in Minnesota and the designated uses of the
proceeds from the fee;
new text end

new text begin (3) the desirability of amending statutes and rules that
apply to the selection, purchase, storage, and application of
agricultural fertilizer and soil nutrients, including the
reasonableness of rules for their on-farm storage; and
new text end

new text begin (4) methods of inspection and monitoring for compliance
with fertilizer regulations to protect against the theft of
anhydrous ammonia for production of methamphetamine.
new text end

new text begin (d) On behalf of the task force, not later than February
15, 2006, the commissioner of agriculture shall prepare and
deliver to the standing agriculture policy committees of the
senate and the house of representatives a report and list of
recommendations for changes in statutes and rules.
new text end

new text begin (e) The task force expires June 30, 2006.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 95. new text begin STUDY; BIODIESEL FUEL FOR RESIDENTIAL,
COMMERCIAL, AND INDUSTRIAL HEATING.
new text end

new text begin (a) From the money available to the commissioner of
commerce for purposes of studies and technical assistance by the
reliability administrator under Minnesota Statutes, section
216C.052, and in conformity with the goals and directives of
Minnesota Statutes, section 16B.325, the reliability
administrator shall perform a comprehensive technical and
economic analysis of the benefits to be derived from using
biodiesel fuel as defined in Minnesota Statutes, section 239.77,
subdivision 1, or biodiesel fuel blends, as a residential,
commercial, and industrial heating fuel. The analysis must
consider blends ranging from B2 to B100. No more than $25,000
may be expended for the analysis.
new text end

new text begin (b) Not later than March 15, 2007, the reliability
administrator shall report the results of the study and analysis
to the appropriate standing committees of the Minnesota senate
and house of representatives.
new text end

Sec. 96. new text begin CONTINUED SUPPORT FOR SUSTAINABLE AND ORGANIC
AGRICULTURE.
new text end

new text begin The University of Minnesota is requested to continue
providing support for sustainable and organic agriculture
initiatives including, but not limited to, the alternative swine
systems program.
new text end

Sec. 97. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall change cross-references in
Minnesota Statutes and Minnesota Rules to reflect the amendments
and repealers in this act and Minnesota Statutes, sections
17.452, subdivision 5a; 35.153; and 35.155, as amended in this
article.
new text end

Sec. 98. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2004, section 41B.046, subdivision
3, is repealed effective the day following final enactment.
new text end

new text begin (b) Minnesota Statutes 2004, sections 18B.065, subdivision
5; and 19.64, subdivision 4a, are repealed.
new text end

new text begin (c) Minnesota Statutes 2004, section 18H.02, subdivisions
15 and 19, are repealed.
new text end

new text begin (d) Minnesota Statutes 2004, section 17.983, subdivision 2,
is repealed.
new text end

new text begin (e) Minnesota Statutes 2004, section 35.0661, subdivision
4, is repealed.
new text end

new text begin (f) Minnesota Statutes 2004, sections 17.451; and 17.452,
subdivisions 6, 6a, 7, 10, 11, 12, 13, 13a, 14, 15, and 16, are
repealed.
new text end

ARTICLE 2

ENVIRONMENT AND NATURAL RESOURCES

Section 1. new text begin ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.
new text end

The sums shown in the columns marked "APPROPRIATIONS" are
appropriated from the general fund, or another named fund, to
the agencies and for the purposes specified in this article, to
be available for the fiscal years indicated for each purpose.
The figures "2006" and "2007," where used in this article, mean
that the appropriation or appropriations listed under them are
available for the fiscal year ending June 30, 2006, or June 30,
2007, respectively. The term "the first year" means the year
ending June 30, 2006, and the term "the second year" means the
year ending June 30, 2007.
SUMMARY BY FUND

2006 2007 TOTAL

General $ 113,313,000 $ 111,865,000 $ 225,178,000

State Government
Special Revenue 48,000 48,000 96,000

Environmental 56,031,000 56,338,000 112,369,000

Natural Resources 68,443,000 68,671,000 137,114,000

Game and Fish 86,928,000 87,773,000 174,701,000

Remediation 11,504,000 11,504,000 23,008,000

Permanent School 200,000 200,000 400,000

State Land and Water Conservation
Account (LAWCON) 1,600,000 -0- 1,600,000

Environment and Natural Resources
Trust Fund 18,829,000 18,829,000 37,658,000

Great Lakes Protection
Account 28,000 -0- 28,000

TOTAL $ 356,924,000 $ 355,228,000 $ 712,152,000

APPROPRIATIONS
Available for the Year
Ending June 30
2006 2007

Sec. 2. POLLUTION CONTROL
AGENCY

Subdivision 1.

Total
Appropriation $ 78,836,000 $ 79,154,000

Summary by Fund

General 11,353,000 11,364,000

State Government
Special Revenue 48,000 48,000

Environmental 56,031,000 56,338,000

Remediation 11,404,000 11,404,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Water

25,428,000 25,439,000

Summary by Fund

General 7,506,000 7,517,000

State Government
Special Revenue 48,000 48,000

Environmental 17,874,000 17,874,000

$2,348,000 the first year and
$2,348,000 the second year are for the
clean water partnership program. Any
balance remaining in the first year
does not cancel and is available for
the second year. This appropriation
may be used for grants to local units
of government for the purpose of
restoring impaired waters listed under
section 303(d) of the federal Clean
Water Act in accordance with adopted
total maximum daily loads (TMDLs),
including implementation of approved
clean water partnership diagnostic
study work plans that will assist in
restoration of such impaired waters.

$335,000 the first year and $335,000
the second year are for community
technical assistance and education,
including grants and technical
assistance to communities for local and
basinwide water quality protection.

$405,000 the first year and $405,000
the second year are for individual
sewage treatment system (ISTS)
administration and grants. Of this
amount, $86,000 each year is for
assistance to counties through grants
for ISTS program administration. Any
unexpended balance in the first year
does not cancel but is available in the
second year.

$480,000 the first year and $480,000
the second year are from the
environmental fund to address the need
for continued increased activity in the
areas of new technology review,
technical assistance for local
governments, and enforcement under
Minnesota Statutes, sections 115.55 to
115.58, and to complete the
requirements of Laws 2003, chapter 128,
article 1, sections 164 and 165. Of
this amount, $48,000 each year is for
administration of individual septic
tank fees, as provided in Minnesota
Statutes, section 115.551.

$2,324,000 the first year and
$2,324,000 the second year must be
distributed as grants to delegated
counties to administer the county
feedlot program. Distribution of the
funds must be conducted according to
the following three-part formula:

(1) Number of feedlots in the county:
60 percent of the total appropriation
must be distributed according to the
number of feedlots that are required to
be registered in the county. Grants
awarded under this clause must be
matched with a combination of local
cash and in-kind contributions.

(2) Minimum program requirements: 25
percent of the total appropriation must
be distributed based on the county (i)
conducting an annual number of
inspections at feedlots that is equal
to or greater than seven percent of the
total number of registered feedlots
that are required to be registered in
the county; and (ii) meeting
noninspection minimum program
requirements as identified in the
county feedlot workplan form. Counties
that do not meet the inspection
requirement must not receive 50 percent
of the eligible funding under this
clause. Counties must receive funding
for noninspection requirements under
this clause according to a scoring
system checklist administered by the
department. The commissioner, in
consultation with the Minnesota
Association of County Feedlot Officers
executive team, shall make a final
decision regarding any appeal by a
county regarding the terms and
conditions of this clause.

(3) Performance credits: 15 percent of
the total appropriation must be
distributed according to work that has
been done by the counties during the
fiscal year. The amount must be
determined by the number of performance
credits a county accumulates during the
year based on a performance credit
matrix jointly agreed upon by the
commissioner in consultation with the
Minnesota Association of County Feedlot
Officers executive team. To receive an
award under this clause the county must
meet the requirements of clause (2)(i)
and achieve 90 percent of the
requirements according to clause
(2)(ii) of the formula. The rate of
reimbursement per performance credit
item must not exceed $200.

Delegated counties are eligible for a
minimum grant of $7,500. To receive
the full $7,500 amount a county must
meet the requirements under clause (2)
of the formula. Nondelegated counties
that apply for delegation shall receive
a grant prorated according to the
number of full quarters remaining in
the program year from the date of
commissioner approval of the
delegation. Funds for awards to any
newly delegated counties must be made
out of the appropriation reserved for
clause (3) of the formula. The
commissioner, in consultation with the
Minnesota Association of County Feedlot
Officers executive team, may decide to
use funds reserved for clause (3) of
the formula in an amount not to exceed
five percent of the total annual
appropriation for initiatives to
enhance existing delegated county
feedlot programs, information and
education, or technical assistance
efforts to reduce feedlot-related
pollution hazards. Any funds remaining
after distribution under clauses (1)
and (2) of the formula must be
transferred to clause (3) of the
formula. Any money remaining after the
first year is available for the second
year.

Notwithstanding Minnesota Statutes,
section 16A.28, the appropriations
encumbered under contract on or before
June 30, 2007, for clean water
partnership, individual sewage
treatment systems (ISTS), Minnesota
River, total maximum daily loads
(TMDLs), and local and basinwide water
quality protection grants in this
subdivision are available until June
30, 2009.

Subd. 3.

Air

9,297,000 9,604,000

Summary by Fund

Environmental 9,297,000 9,604,000

Up to $150,000 the first year and
$150,000 the second year may be
transferred to the environmental fund
for the small business environmental
improvement loan program established in
Minnesota Statutes, section 116.993.

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

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

Subd. 4.

Land

18,469,000 18,469,000

Summary by Fund

Environmental 7,065,000 7,065,000

Remediation 11,404,000 11,404,000

All money for environmental response,
compensation, and compliance in the
remediation fund not otherwise
appropriated is appropriated to the
commissioners of the Pollution Control
Agency and the Department of
Agriculture for purposes of Minnesota
Statutes, section 115B.20, subdivision
2, clauses (1), (2), (3), (6), and
(7). At the beginning of each fiscal
year, the two commissioners shall
jointly submit an annual spending plan
to the commissioner of finance that
maximizes the utilization of resources
and appropriately allocates the money
between the two agencies. This
appropriation is available until June
30, 2007.

$3,616,000 the first year and
$3,616,000 the second year are from the
petroleum tank fund to be transferred
to the remediation fund for purposes of
the leaking underground storage tank
program to protect the land.

$200,000 the first year and $200,000
the second year are from the
remediation fund to be transferred to
the Department of Health for private
water supply monitoring and health
assessment costs in areas contaminated
by unpermitted mixed municipal solid
waste disposal facilities.

In fiscal years 2006 and 2007, of the
money appropriated from the remediation
fund under Minnesota Statutes, section
116.155, subdivision 2, at least
$2,000,000 must be used for cleanup at
Valentine Clark and Reserve Mining.

Subd. 5.

Multimedia

4,305,000 4,305,000

Summary by Fund

General 2,264,000 2,264,000

Environmental 2,041,000 2,041,000

Subd. 6.

Environmental Assistance

19,754,000 19,754,000

Summary by Fund

Environmental 19,754,000 19,754,000

$12,500,000 each year is from the
environmental fund for SCORE block
grants to counties.

Any unencumbered grant and loan
balances in the first year do not
cancel but are available for grants and
loans in the second year.

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

$119,000 the first year and $119,000
the second year are for environmental
assistance grants or loans under
Minnesota Statutes, section 115A.0716.

Notwithstanding Minnesota Statutes,
section 16A.28, the appropriations
encumbered under contract on or before
June 30, 2007, for environmental
assistance grants awarded under
Minnesota Statutes, section 115A.0716,
and for technical and research
assistance under Minnesota Statutes,
section 115A.152, technical assistance
under Minnesota Statutes, section
115A.52, and pollution prevention
assistance under Minnesota Statutes,
section 115D.04, are available until
June 30, 2009.

Subd. 7.

Administrative Support

1,583,000 1,583,000

Summary by Fund

General 1,583,000 1,583,000

By December 1, 2005, the commissioner
shall submit a report to the
Environment and Natural Resources
Policy and Finance Committees of the
house and senate that provides a
benchmarking matrix and analysis that
compares the environmental review and
permitting requirements for forest
products and mining industry projects
in Minnesota with requirements in other
states and countries. The matrix and
analysis must include an assessment of
whether the requirements in Minnesota
and other relevant states and countries
that have similar industries are more
strict, less strict, or equivalent to
requirements of the federal
Environmental Protection Agency and
requirements under the National
Environmental Policy Act.

The commissioner may transfer money
from the environmental fund to the
remediation fund as necessary for the
purposes of the remediation fund under
Minnesota Statutes, section 116.155,
subdivision 2.

Sec. 3. NATURAL RESOURCES

Subdivision 1.

Total
Appropriation 226,157,000 225,980,000

Summary by Fund

General 75,681,000 74,431,000

Natural Resources 63,248,000 63,476,000

Game and Fish 86,928,000 87,773,000

Remediation 100,000 100,000

Permanent School 200,000 200,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Land and Mineral Resources
Management

8,903,000 8,675,000

Summary by Fund

General 5,498,000 5,248,000

Natural Resources 2,222,000 2,222,000

Game and Fish 983,000 1,005,000

Permanent School 200,000 200,000

$275,000 the first year and $275,000
the second year are for iron ore
cooperative research, of which $137,500
the first year and $137,500 the second
year are available only as matched by
$1 of nonstate money for each $1 of
state money. The match may be cash or
in-kind.

$86,000 the first year and $86,000 the
second year are for minerals
cooperative environmental research, of
which $43,000 the first year and
$43,000 the second year are available
only as matched by $1 of nonstate money
for each $1 of state money. The match
may be cash or in-kind.

$2,046,000 the first year and
$2,046,000 the second year are from the
minerals management account in the
natural resources fund for only the
purposes specified in new Minnesota
Statutes, section 93.2236, paragraph
(c). Of this amount, $1,526,000 the
first year and $1,526,000 the second
year are for mineral resource
management, $420,000 the first year and
$420,000 the second year are for
projects to enhance future income and
promote new opportunities, including
value-added iron products, geological
mapping, and mercury research, and
$100,000 the first year and $100,000
the second year are for environmental
review and the processing of permits
for mining projects that involve
state-owned mineral rights. The
appropriation is from the revenue
deposited in the minerals management
account under Minnesota Statutes,
section 93.22, subdivision 1, paragraph
(b). $100,000 each year is a onetime
appropriation.

$150,000 the first year and $150,000
the second year are from the state
forest suspense account in the
permanent school fund to accelerate
land exchanges, land sales, and
commercial leasing of school trust
lands. This appropriation is to be
used toward meeting the provisions of
Minnesota Statutes, section 92.121, to
exchange school trust lands or put
alternatives in effect when management
practices have diminished or prohibited
revenue generation, and the direction
of Minnesota Statutes, section 127A.31,
to secure maximum long-term economic
return from the school trust lands
consistent with fiduciary
responsibilities and sound natural
resources conservation and management
principles.

$50,000 the first year and $50,000 the
second year are from the state forest
suspense account in the permanent
school fund to identify, evaluate, and
lease construction aggregate located on
school trust lands.

$250,000 the first year is for a grant
to the Board of Regents of the
University of Minnesota to drill a
5,000 foot core sampling bore hole at
the Tower-Soudan mine complex in
support of a National Science
Foundation grant. This is a onetime
appropriation

Subd. 3.

Water Resources Management

11,092,000 11,092,000

Summary by Fund

General 10,812,000 10,812,000

Natural Resources 280,000 280,000

$210,000 the first year and $210,000
the second year are for grants
associated with the implementation of
the Red River mediation agreement.

$65,000 the first year and $65,000 the
second year are for a grant to the
Mississippi Headwaters Board for up to
50 percent of the cost of implementing
the comprehensive plan for the upper
Mississippi within areas under its
jurisdiction.

$5,000 the first year and $5,000 the
second year are for payment to the
Leech Lake Band of Chippewa Indians to
implement its portion of the
comprehensive plan for the upper
Mississippi.

$125,000 the first year and $125,000
the second year are for the
construction of ring dikes under
Minnesota Statutes, section 103F.161.
The ring dikes may be publicly or
privately owned. Any unencumbered
balance does not cancel at the end of
the first year and is available for the
second year.

Subd. 4.

Forest Management

35,526,000 35,126,000

Summary by Fund

General 24,961,000 24,561,000

Natural Resources 10,315,000 10,315,000

Game and Fish 250,000 250,000

$7,217,000 the first year and
$7,217,000 the second year are for
prevention, presuppression, and
suppression costs of emergency
firefighting and other costs incurred
under Minnesota Statutes, section
88.12. If the appropriation for either
year is insufficient to cover all costs
of presuppression and suppression, the
amount necessary to pay for these costs
during the biennium is appropriated
from the general fund. By November 15
of each year, the commissioner of
natural resources shall submit a report
to the chairs of the house of
representatives Ways and Means
Committee, the senate Finance
Committee, the Environment and
Agriculture Budget Division of the
senate Finance Committee, and the house
of representatives Agriculture,
Environment and Natural Resources
Finance Committee, identifying all
firefighting costs incurred and
reimbursements received in the prior
fiscal year. These appropriations may
not be transferred. Any reimbursement
of firefighting expenditures made to
the commissioner from any source other
than federal mobilizations shall be
deposited into the general fund.

$10,315,000 the first year and
$10,315,000 the second year are from
the forest management investment
account in the natural resources fund
for only the purposes specified in
Minnesota Statutes, section 89.039,
subdivision 2.

$730,000 the first year and $730,000
the second year are for the Forest
Resources Council for implementation of
the Sustainable Forest Resources Act.

$350,000 the first year and $350,000
the second year are for the FORIST
Timber Management Information System
and for increased forestry management.
The amount in the second year is also
available in the first year.

$250,000 the first year and $250,000
the second year are from the game and
fish fund to implement Ecological
Classification Systems (ECS) standards
on forested landscapes. This
appropriation is from revenue deposited
in the game and fish fund under
Minnesota Statutes, section 297A.94,
paragraph (e), clause (1).

$400,000 the first year is for grants
to the Natural Resources Research
Institute for silvicultural research to
improve the quality and quantity of
timber fiber. The appropriation must
be matched in the amount of $400,000,
in cash or in-kind contributions, from
the forest products industry members of
the Minnesota Forest Productivity
Research Cooperative. This is a
onetime appropriation.

Subd. 5.

Parks and Recreation
Management

33,001,000 33,161,000

Summary by Fund

General 19,279,000 19,279,000

Natural Resources 13,722,000 13,882,000

$640,000 the first year and $640,000
the second year are from the water
recreation account in the natural
resources fund for state park water
access projects.

$3,811,000 the first year and
$3,971,000 the second year are from the
natural resources fund for state park
and recreation area operations. This
appropriation is from the revenue
deposited in the natural resources fund
under Minnesota Statutes, section
297A.94, paragraph (e), clause (2).

Subd. 6.

Trails and Waterways
Management

26,971,000 26,660,000

Summary by Fund

General 1,684,000 1,284,000

Natural Resources 23,196,000 23,289,000

Game and Fish 2,091,000 2,087,000

$7,224,000 the first year and
$7,224,000 the second year are from the
snowmobile trails and enforcement
account in the natural resources fund
for snowmobile grants-in-aid. The
additional money under this item may be
used for new grant-in-aid trails. Any
unencumbered balance does not cancel at
the end of the first year and is
available for the second year.

$925,000 the first year and $825,000
the second year are from the natural
resources fund for off-highway vehicle
grants-in-aid. Of this amount,
$575,000 each year is from the
all-terrain vehicle account; $150,000
each year is from the off-highway
motorcycle account; and $200,000 the
first year and $100,000 the second year
are from the off-road vehicle account.
Any unencumbered balance does not
cancel at the end of the first year and
is available for the second year.

$261,000 the first year and $261,000
the second year are from the water
recreation account in the natural
resources fund for a safe harbor
program on Lake Superior.

$742,000 the first year and $760,000
the second year are from the natural
resources fund for state trail
operations. This appropriation is from
the revenue deposited in the natural
resources fund under Minnesota
Statutes, section 297A.94, paragraph
(e), clause (2).

$655,000 the first year and $655,000
the second year are from the natural
resources fund for trail grants to
local units of government on land to be
maintained for at least 20 years for
the purposes of the grant. This
appropriation is from the revenue
deposited in the natural resources fund
under Minnesota Statutes, section
297A.94, paragraph (e), clause (4).

By June 30, 2007, the department shall
establish a boat launch and ramp at
Horseshoe Bay in Cook County, and
rehabilitate the historic fishing pier
on Dower Lake in Todd County.

$1,600,000 the first year and
$1,900,000 the second year are from the
water recreation account in the natural
resources fund for the acquisition,
development, maintenance, and
rehabilitation of existing sites for
public access and boating facilities on
public waters. This money is from the
watercraft license fee increases in
this act.

$100,000 the first year is for a grant
to the Duluth Port Authority to
determine the cause of freshwater
corrosion of harbor sheet piling,
provided these state funds are matched
on a dollar-for-dollar basis by
nonstate funds. This is a onetime
appropriation.

$300,000 is for a grant to the St.
Louis and Lake Counties Regional
Railroad Authority to complete
constructing, furnishing, and equipping
Mesabi Station along the 132-mile
recreational trail known as Mesabi
Trail and located at the intersection
of U.S. Highway 53 and marked Trunk
Highway 37. This appropriation is
dependent upon a matching contribution
of $800,000 from other sources, public
or private. This is a onetime
appropriation.

$75,000 the first year is from the
all-terrain vehicle account in the
natural resources fund for a study to
determine the amount of gasoline used
each year by all-terrain vehicle riders
in the state, except for riders with
vehicles registered for private use.
The commissioners of natural resources,
revenue, and transportation shall
jointly determine the amount of
unrefunded gasoline tax attributable to
all-terrain vehicle use in the state
and shall report to the legislature by
March 1, 2006, with an appropriate
proposed revision to Minnesota
Statutes, section 296A.18.

$50,000 is appropriated from the
all-terrain vehicle account in the
natural resources fund to the
commissioner of natural resources for
fiscal year 2006 for a feasibility
study on the use of all-terrain
vehicles on the North Shore Trail. All
data and information compiled for this
study may be used in any future master
trail plan revision. The study shall
be reported back to the house and
senate environment committee chairs by
March 1, 2006.

The appropriation in Laws 2003, chapter
128, article 1, section 5, subdivision
6, from the water recreation account in
the natural resources fund for a
cooperative project with the United
States Army Corps of Engineers to
develop the Mississippi Whitewater Park
is available until June 30, 2007.

By February 15, 2006, the commissioner
shall report to the senate Environment,
Agriculture and Economic Development
Budget Division and the house
Environment, Natural Resources, and
Agriculture Finance Committees on the
management and operational
responsibilities for the Mississippi
Whitewater Park authorized by Minnesota
Statutes, section 85.0156. The report
shall identify who the potential
operators, owners, and managers of the
park will be as well as related issues.

Subd. 7.

Fish and Wildlife Management

62,688,000 62,866,000

Summary by Fund

General 2,166,000 1,966,000

Natural Resources 1,740,000 1,740,000

Game and Fish 58,782,000 59,160,000

$407,000 the first year and $412,000
the second year are for resource
population surveys in the 1837 treaty
area. Of this amount, $265,000 the
first year and $270,000 the second year
are from the game and fish fund.

$3,013,000 the first year and
$3,013,000 the second year are from the
wildlife acquisition surcharge account
for only the purposes specified in
Minnesota Statutes, section 97A.071,
subdivision 2a. This appropriation is
available until spent.

$7,233,000 the first year and
$7,233,000 the second year are from the
heritage enhancement account in the
game and fish fund for only the
purposes specified in Minnesota
Statutes, section 297A.94, paragraph
(e), clause (1).

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

Notwithstanding Minnesota Statutes,
section 297A.94, this appropriation may
be used for hunter recruitment and
retention and public land user
facilities.

$1,030,000 the first year and $880,000
the second year are from the trout and
salmon management account for only the
purposes specified in Minnesota
Statutes, section 97A.075, subdivision
3.

$1,411,000 the first year and
$1,411,000 the second year are from the
deer habitat improvement account for
only the purposes specified in
Minnesota Statutes, section 97A.075,
subdivision 1, paragraph (b).

$397,000 the first year and $397,000
the second year are from the deer and
bear management account for only the
purposes specified in Minnesota
Statutes, section 97A.075, subdivision
1, paragraph (c).

$851,000 the first year and $851,000
the second year are from the waterfowl
habitat improvement account for only
the purposes specified in Minnesota
Statutes, section 97A.075, subdivision
2.

$890,000 the first year and $890,000
the second year are from the pheasant
habitat improvement account for only
the purposes specified in Minnesota
Statutes, section 97A.075, subdivision
4.

$142,000 the first year and $142,000
the second year are from the wild
turkey management account for only the
purposes specified in Minnesota
Statutes, section 97A.075, subdivision
5. Of this amount, $8,000 the first
year and $8,000 the second year are
appropriated from the game and fish
fund for transfer to the wild turkey
management account for purposes
specified in Minnesota Statutes,
section 97A.075, subdivision 5.

$200,000 the first year is for
coordination and implementation of the
roadsides for wildlife program,
including roadside wildlife management
training for road managers and adjacent
landowners, development of local
partnerships to maximize roadside
habitat benefits, identification and
cataloguing of existing and needed
technical resources, and development of
a steering group to monitor the
progress of the program and identify
and resolve issues of concern for
wildlife management in roadsides. This
is a onetime appropriation.

Notwithstanding Minnesota Statutes,
section 297A.94, paragraph (e), clause
(1), $325,000 is from the revenue
deposited to the game and fish fund
under Minnesota Statutes, section
297A.94, paragraph (e), clause (1), for
a grant to "Let's Go Fishing" of
Minnesota to promote opportunities for
fishing. The grant recipient must
report back to the commissioner by
February 1, 2006, on the use and
results of the appropriation. This is
a onetime appropriation.

Notwithstanding Minnesota Statutes,
section 16A.28, the appropriations
encumbered under contract on or before
June 30, 2007, for aquatic restoration
grants and wildlife habitat grants are
available until June 30, 2008.

Subd. 8.

Ecological Services

10,196,000 10,235,000

Summary by Fund

General 3,275,000 3,275,000

Natural Resources 3,215,000 3,215,000

Game and Fish 3,706,000 3,745,000

$1,128,000 the first year and
$1,128,000 the second year are from the
nongame wildlife management account in
the natural resources fund for the
purpose of nongame wildlife management.

Notwithstanding Minnesota Statutes,
section 290.431, $100,000 the first
year and $100,000 the second year may
be used for nongame information,
education, and promotion.

$477,000 the first year and $477,000
the second year are for the reinvest in
Minnesota programs of game and fish,
critical habitat, and wetlands
established under Minnesota Statutes,
section 84.95, subdivision 2.

$1,588,000 the first year and
$1,588,000 the second year are from the
heritage enhancement account in the
game and fish fund for only the
purposes specified in Minnesota
Statutes, section 297A.94, paragraph
(e), clause (1).

Subd. 9.

Enforcement

28,492,000 28,817,000

Summary by Fund

General 3,106,000 3,106,000

Natural Resources 6,963,000 6,938,000

Game and Fish 18,323,000 18,673,000

Remediation 100,000 100,000

$1,082,000 the first year and
$1,082,000 the second year are from the
water recreation account in the natural
resources fund for grants to counties
for boat and water safety.

$100,000 the first year and $100,000
the second year are from the
remediation fund for solid waste
enforcement activities under Minnesota
Statutes, section 116.073.

$315,000 the first year and $315,000
the second year are from the snowmobile
trails and enforcement account in the
natural resources fund for grants to
local law enforcement agencies for
snowmobile enforcement activities.

The unexpended balance of money from
Laws 1999, chapter 231, section 5,
subdivision 6, must be credited to the
snowmobile trails and enforcement
account and the appropriation for the
repair of public trails damaged by
snowmobiles shall be canceled.

$1,164,000 the first year and
$1,164,000 the second year are from the
heritage enhancement account in the
game and fish fund for only the
purposes specified in Minnesota
Statutes, section 297A.94, paragraph
(e), clause (1).

Overtime must be distributed to
conservation officers at historical
levels; however, a reasonable reduction
or addition may be made to the
officer's allocation, if justified,
based on an individual officer's
workload. If funding for enforcement
is reduced because of an unallotment,
the overtime bank may be reduced in
proportion to reductions made in other
areas of the budget.

$225,000 the first year and $225,000
the second year are from the natural
resources fund for grants to county law
enforcement agencies for off-highway
vehicle enforcement and public
education activities based on
off-highway vehicle use in the county.
Of this amount, $213,000 each year is
from the all-terrain vehicle account;
$11,000 each year is from the
off-highway motorcycle account; and
$1,000 each year is from the off-road
vehicle account. The county
enforcement agencies may use money
received under this appropriation to
make grants to other local enforcement
agencies within the county that have a
high concentration of off-highway
vehicle use. Of this appropriation,
$25,000 each year is for administration
of these grants.

$15,000 the first year is from the
off-highway motorcycle account in the
natural resources fund to produce an
interactive CD-ROM training tool for
the off-highway motorcycle education
and training program under Minnesota
Statutes, section 84.791.

$15,000 the first year and $5,000 the
second year are from the off-road
vehicle account in the natural
resources fund to establish the
off-road vehicle environment and safety
education and training program under
Minnesota Statutes, section 84.8015.

Subd. 10.

Operations Support

9,288,000 9,348,000

Summary by Fund

General 4,900,000 4,900,000

Natural Resources 1,595,000 1,595,000

Game and Fish 2,793,000 2,853,000

$270,000 the first year and $270,000
the second year are from the natural
resources fund for grants to be divided
equally between the city of St. Paul
for the Como Zoo and Conservatory and
the city of Duluth Zoo. This
appropriation is from the revenue
deposited to the fund under Minnesota
Statutes, section 297A.94, paragraph
(e), clause (5).

Sec. 4. MINNESOTA
CONSERVATION CORPS 840,000 840,000

Summary by Fund

General 350,000 350,000

Natural Resources 490,000 490,000

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

Sec. 5. BOARD OF WATER
AND SOIL RESOURCES 15,440,000 15,231,000

$4,102,000 the first year and
$4,102,000 the second year are for
natural resources block grants to local
governments.

The board may reduce the amount of the
natural resources block grant to a
county by an amount equal to any
reduction in the county's general
services allocation to a soil and water
conservation district from the county's
previous year allocation when the board
determines that the reduction was
disproportionate.

Grants must be matched with a
combination of local cash or in-kind
contributions. The base grant portion
related to water planning must be
matched by an amount that would be
raised by a levy under Minnesota
Statutes, section 103B.3369.

$3,566,000 the first year and
$3,566,000 the second year are for
grants to soil and water conservation
districts for general purposes,
nonpoint engineering, and
implementation of the reinvest in
Minnesota conservation reserve
program. Upon approval of the board,
expenditures may be made from these
appropriations for supplies and
services benefiting soil and water
conservation districts.

$3,285,000 the first year and
$3,285,000 the second year are for
grants to soil and water conservation
districts for cost-sharing contracts
for erosion control and water quality
management. For base grant allocations
made prior to January 1, 2007, up to
100 percent of this appropriation may
be used for technical assistance. Of
this amount, at least $1,500,000 the
first year and $1,500,000 the second
year are for grants for cost-sharing
contracts for water quality management
on feedlots.

Any balance in the board's cost share
program that remains from the fiscal
year 2005 appropriation is available in
an amount of up to $15,000 for a grant
to the Mower County Soil and Water
Conservation District to create a small
pond demonstration project in the Cedar
River Watershed for purposes of water
retention and flood control. The Mower
County Soil and Water Conservation
District must seek other sources of
funding, including federal and private
sources, to ensure that the
demonstration project is educational
and complete.

$100,000 the first year and $100,000
the second year are for a grant to the
Red River Basin Commission to develop a
Red River basin plan and to coordinate
water management activities in the
states and provinces bordering the Red
River. The unencumbered balance in the
first year does not cancel but is
available for the second year.

$105,000 the first year and $105,000
the second year are for a grant to Area
II, Minnesota River Basin Projects,
Inc., for floodplain management,
including administration of programs.
If the appropriation in either year is
insufficient, the appropriation in the
other year is available for it.

$109,000 the first year is for an
implementation assessment of public
drainage system buffers and their use,
maintenance, and benefits. The
assessment must be done in consultation
with farm groups, watershed districts,
soil and water conservation districts,
counties, and conservation
organizations, as well as federal
agencies implementing voluntary buffer
programs. The board shall report the
results to the senate and house of
representatives committees with
jurisdiction over drainage systems by
January 15, 2006. This is a onetime
appropriation.

$100,000 the first year is for beaver
damage control grants under new
Minnesota Statutes, section 103F.950.
This is a onetime appropriation.

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

Sec. 6. ZOOLOGICAL BOARD 6,574,000 6,574,000

Summary by Fund

General 6,439,000 6,439,000

Natural Resources 135,000 135,000

$135,000 the first year and $135,000
the second year are from the natural
resources fund from the revenue
deposited under Minnesota Statutes,
section 297A.94, paragraph (e), clause
(5). This is a onetime appropriation.

Sec. 7.

SCIENCE MUSEUM
OF MINNESOTA 750,000 750,000

Sec. 8. METROPOLITAN COUNCIL 7,870,000 7,870,000

Summary by Fund

General 3,300,000 3,300,000

Natural Resources 4,570,000 4,570,000

$3,300,000 the first year and
$3,300,000 the second year are for
metropolitan area regional parks
maintenance and operations.

$4,570,000 the first year and
$4,570,000 the second year are from the
natural resources fund for metropolitan
area regional parks and trails
maintenance and operations. This
appropriation is from the revenue
deposited in the natural resources fund
under Minnesota Statutes, section
297A.94, paragraph (e), clause (3).

Sec. 9. FUND TRANSFER

By June 30, 2007, the commissioner of
the Pollution Control Agency shall
transfer $1,459,000 from the
environmental fund to the commissioner
of finance for cancellation to the
general fund.

Sec. 10. MINNESOTA FUTURE
RESOURCES FUND

By June 30, 2006, and by June 30, 2007,
the commissioner of finance shall
transfer any remaining unappropriated
balance from the Minnesota future
resources fund to the general fund.

Sec. 11. MINNESOTA RESOURCES

Subdivision 1.

Total
Appropriation
20,457,000 18,829,000

Summary by Fund

State Land and Water Conservation
Account (LAWCON) 1,600,000 -0-

Environment and Natural Resources
Trust Fund 18,829,000 18,829,000

Great Lakes Protection
Account 28,000 -0-

Appropriations from the LAWCON account
and Great Lakes protection account are
available for either year of the
biennium.

For appropriations from the environment
and natural resources trust fund, any
unencumbered balance remaining in the
first year does not cancel and is
available for the second year of the
biennium. Unless otherwise provided,
the amounts in this section are
available until June 30, 2007, when
projects must be completed and final
products delivered.

Subd. 2. Definitions

(a) "State land and water conservation
account (LAWCON)" means the state land
and water conservation account in the
natural resources fund referred to in
Minnesota Statutes, section 116P.14.

(b) "Great Lakes protection account"
means the Great Lakes protection
account referred to in Minnesota
Statutes, section 116Q.02, subdivision
1.

(c) "Trust fund" means the Minnesota
environment and natural resources trust
fund referred to in Minnesota Statutes,
section 116P.02, subdivision 6.

Subd. 3.

Administration 524,000 525,000

Summary by Fund

Trust Fund 524,000 525,000

(a) Legislative Commission on Minnesota Resources

$449,000 the first year and $450,000
the second year are from the trust fund
for administration as provided in
Minnesota Statutes, section 116P.09,
subdivision 5.

(b) Contract Administration

$75,000 the first year and $75,000 the
second year are from the trust fund to
the commissioner of natural resources
for contract administration activities
assigned to the commissioner in this
section. This appropriation is
available until June 30, 2008.

Subd. 4.

Citizen Advisory Committee 10,000 10,000

Summary by Fund

Trust Fund 10,000 10,000

$10,000 the first year and $10,000 the
second year are from the trust fund to
the Legislative Commission on Minnesota
Resources for expenses of the citizen
advisory committee as provided in
Minnesota Statutes, section 116P.06.
Notwithstanding Minnesota Statutes,
section 16A.281, the availability of
$15,000 of the appropriation from Laws
2003, chapter 128, article 1, section
9, subdivision 4, advisory committee,
is extended to June 30, 2007.

Subd. 5.

Fish and Wildlife Habitat 5,038,000 5,038,000

Summary by Fund

Trust Fund 5,038,000 5,038,000

(a) Restoring Minnesota's Fish and Wildlife
Habitat Corridors-Phase III

$2,031,000 the first year and
$2,031,000 the second year are from the
trust fund to the commissioner of
natural resources for the third
biennium for acceleration of agency
programs and cooperative agreements
with Pheasants Forever, Minnesota Deer
Hunters Association, Ducks Unlimited,
Inc., National Wild Turkey Federation,
the Nature Conservancy, Minnesota Land
Trust, the Trust for Public Land,
Minnesota Valley National Wildlife
Refuge Trust, Inc., U.S. Fish and
Wildlife Service, Red Lake Band of
Chippewa, Leech Lake Band of Chippewa,
Fond du Lac Band of Chippewa,
USDA-Natural Resources Conservation
Service, and the Board of Water and
Soil Resources to plan, restore, and
acquire fragmented landscape corridors
that connect areas of quality habitat
to sustain fish, wildlife, and plants.
Expenditures are limited to the 11
project areas as defined in the work
program. Land acquired with this
appropriation must be sufficiently
improved to meet at least minimum
habitat and facility management
standards as determined by the
commissioner of natural resources.
This appropriation may not be used for
the purchase of residential structures,
unless expressly approved in the work
program. Any land acquired in fee
title by the commissioner of natural
resources with money from this
appropriation must be designated: (1)
as an outdoor recreation unit under
Minnesota Statutes, section 86A.07; or
(2) as provided in Minnesota Statutes,
sections 89.018, subdivision 2,
paragraph (a); 97A.101; 97A.125;
97C.001; and 97C.011. The commissioner
may similarly designate any lands
acquired in less than fee title. This
appropriation is available until June
30, 2008, at which time the project
must be completed and final products
delivered, unless an earlier date is
specified in the work program.

(b) Metropolitan Area Wildlife
Corridors-Phase II

$1,765,000 the first year and
$1,765,000 the second year are from the
trust fund to the commissioner of
natural resources for the second
biennium for acceleration of agency
programs and cooperative agreements
with the Trust for Public Land, Ducks
Unlimited, Inc., Friends of the
Mississippi River, Great River
Greening, Minnesota Land Trust,
Minnesota Valley National Wildlife
Refuge Trust, Inc., Pheasants Forever,
Inc., and Friends of the Minnesota
Valley for the purposes of planning,
improving, and protecting important
natural areas in the metropolitan
region, as defined by Minnesota
Statutes, section 473.121, subdivision
2, and portions of the surrounding
counties, through grants, contracted
services, conservation easements, and
fee acquisition. Land acquired with
this appropriation must be sufficiently
improved to meet at least minimum
management standards as determined by
the commissioner of natural resources.
Expenditures are limited to the
identified project areas as defined in
the work program. This appropriation
may not be used for the purchase of
residential structures, unless
expressly approved in the work
program. Any land acquired in fee
title by the commissioner of natural
resources with money from this
appropriation must be designated: (1)
as an outdoor recreation unit under
Minnesota Statutes, section 86A.07; or
(2) as provided in Minnesota Statutes,
sections 89.018, subdivision 2,
paragraph (a); 97A.101; 97A.125;
97C.001; and 97C.011. The commissioner
may similarly designate any lands
acquired in less than fee title. This
appropriation is available until June
30, 2008, at which time the project
must be completed and final products
delivered, unless an earlier date is
specified in the work program.

(c) Development of Scientific and Natural Areas

$67,000 the first year and $67,000 the
second year are from the trust fund to
the commissioner of natural resources
to develop and enhance lands designated
as scientific and natural areas. This
appropriation is available until June
30, 2008, at which time the project
must be completed and final products
delivered, unless an earlier date is
specified in the work program.

(d) Prairie Stewardship of Private Lands

$50,000 the first year and $50,000 the
second year are from the trust fund to
the commissioner of natural resources
to develop stewardship plans and
implement prairie management on private
prairie lands on a cost-share basis
with private or federal funds. This
appropriation is available until June
30, 2008, at which time the project
must be completed and final products
delivered, unless an earlier date is
specified in the work program.

(e) Local Initiative Grants-Conservation
Partners and Environmental Partnerships

$250,000 the first year and $250,000
the second year are from the trust fund
to the commissioner of natural
resources to provide matching grants of
up to $20,000 to local government and
private organizations for enhancement,
restoration, research, and education
associated with natural habitat and
environmental service projects.
Subdivision 16 applies to grants
awarded in the approved work program.
This appropriation is available until
June 30, 2008, at which time the
project must be completed and final
products delivered, unless an earlier
date is specified in the work program.

(f) Minnesota ReLeaf Community Forest
Development and Protection

$250,000 the first year and $250,000
the second year are from the trust fund
to the commissioner of natural
resources for acceleration of the
agency program and a cooperative
agreement with Tree Trust to protect
forest resources, develop
inventory-based management plans, and
provide matching grants to communities
to plant native trees. At least
$390,000 of this appropriation must be
used for grants to communities. For
the purposes of this paragraph, the
match must be a nonstate contribution,
but may be either cash or qualifying
in-kind. This appropriation is
available until June 30, 2008, at which
time the project must be completed and
final projects delivered, unless an
earlier date is specified in the work
program.

(g) Integrated and Pheromonal Control of
Common Carp

$275,000 the first year and $275,000
the second year are from the trust fund
to the University of Minnesota for the
second biennium to research new options
for controlling common carp. This
appropriation is available until June
30, 2009, at which time the project
must be completed and final products
delivered, unless an earlier date is
specified in the work program.

(h) Biological Control of European Buckthorn
and Garlic Mustard

$100,000 the first year and $100,000
the second year are from the trust fund
to the commissioner of natural
resources to research potential insects
for biological control of invasive
European buckthorn species for the
second biennium and to introduce and
evaluate insects for biological control
of garlic mustard. This appropriation
is available until June 30, 2008, at
which time the project must be
completed and final products delivered,
unless an earlier date is specified in
the work program.

(i) Land Exchange Revolving Fund for
Aitkin, Cass, and Crow Wing Counties

$250,000 the first year and $250,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with Aitkin
County for a six-year revolving loan
fund to improve public and private land
ownership patterns, increase management
efficiency, and protect critical
habitat in Aitkin, Cass, and Crow Wing
Counties. By June 30, 2011, Aitkin
County shall repay the $500,000 to the
commissioner of finance for deposit in
the environment and natural resources
trust fund.

Subd. 6.

Recreation 7,160,000 5,559,000

Summary by Fund

Trust Fund 5,560,000 5,559,000

State Land and Water Conservation
Account (LAWCON) 1,600,000 -0-

(a) State Park and Recreation Area
Land Acquisition

$1,000,000 the first year and
$1,000,000 the second year are from the
trust fund to the commissioner of
natural resources to acquire
in-holdings for state park and
recreation areas. Land acquired with
this appropriation must be sufficiently
improved to meet at least minimum
management standards as determined by
the commissioner of natural resources.
This appropriation is available until
June 30, 2008, at which time the
project must be completed and final
products delivered, unless an earlier
date is specified in the work program.

(b) LAWCON Federal Reimbursements

$1,600,000 is from the State Land and
Water Conservation Account (LAWCON) in
the natural resources fund to the
commissioner of natural resources for
priorities established by the
commissioner for eligible state
projects and administrative and
planning activities consistent with
Minnesota Statutes, section 116P.14,
and the federal Land and Water
Conservation Fund Act. Subdivision 16
applies to grants awarded in the
approved work program. This
appropriation is contingent upon
receipt of the federal obligation and
remains available until June 30, 2008,
at which time the project must be
completed and final products delivered,
unless an earlier date is specified in
the work program.

(c) State Park and Recreation Area
Revenue-Enhancing Development

$100,000 the first year and $100,000
the second year are from the trust fund
to the commissioner of natural
resources to enhance revenue generation
in the state's park and recreation
system.

(d) Best Management Practices for Parks
and Outdoor Recreation

$100,000 the first year and $100,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with the
Minnesota Recreation and Park
Association to develop and evaluate
opportunities to more efficiently
manage Minnesota's parks and outdoor
recreation areas.

(e) Metropolitan Regional Parks Acquisition,
Rehabilitation, and Development

$1,000,000 the first year and
$1,000,000 the second year are from the
trust fund to the Metropolitan Council
for subgrants for the acquisition,
development, and rehabilitation in the
metropolitan regional park system,
consistent with the Metropolitan
Council regional recreation open space
capital improvement plan. This
appropriation may not be used for the
purchase of residential structures, may
be used to reimburse implementing
agencies for acquisition as expressly
approved in the work program, and must
be matched by at least 40 percent of
nonstate money. Subdivision 16 applies
to grants awarded in the approved work
program. This appropriation is
available until June 30, 2008, at which
time the project must be completed and
final products delivered, unless an
earlier date is specified in the work
program. If a project financed under
this program receives a federal grant
award, the availability of the
financing from this paragraph for that
project is extended to equal the period
of the federal grant.

(f) Gitchi-Gami State Trail

$250,000 the first year and $250,000
the second year are from the trust fund
to the commissioner of natural
resources, in cooperation with the
Gitchi-Gami Trail Association, for the
fourth biennium, to design and
construct approximately two miles of
Gitchi-Gami State Trail segments. This
appropriation is available until June
30, 2008, at which time the project
must be completed and final products
delivered. If this project receives a
federal grant award, the availability
of the financing from this paragraph
for the project is extended to equal
the period of the federal grant.

(g) Casey Jones State Trail

$600,000 the first year and $600,000
the second year are from the trust fund
to the commissioner of natural
resources in cooperation with the
Friends of the Casey Jones Trail
Association for land acquisition and
development of the Casey Jones State
Trail in southwest Minnesota. This
appropriation is available until June
30, 2008, at which time the project
must be completed and final products
delivered. If this project receives a
federal grant award, the availability
of the financing from this paragraph
for the project is extended to equal
the period of the federal grant.

(h) Paul Bunyan State Trail Connection

$200,000 the first year and $200,000
the second year are from the trust fund
to the commissioner of natural
resources to acquire land to connect
the Paul Bunyan State Trail within the
city of Bemidji.

(i) Minnesota River Trail Planning

$100,000 the first year and $100,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with the
University of Minnesota to provide
trail planning assistance to three
communities along the Minnesota River
State Trail.

(j) Local Initiative Grants-Parks and Natural Areas

$600,000 the first year and $600,000
the second year are from the trust fund
to the commissioner of natural
resources to provide matching grants to
local governments for acquisition and
development of natural and scenic areas
and local parks as provided in
Minnesota Statutes, section 85.019,
subdivisions 2 and 4a, and regional
parks outside of the metropolitan
area. Grants may provide up to 50
percent of the nonfederal share of the
project cost, except nonmetropolitan
regional park grants may provide up to
60 percent of the nonfederal share of
the project cost. $500,000 of this
appropriation is for land acquisition
for a proposed county regional park on
Kraemer Lake in Stearns County. The
commission will monitor the grants for
approximate balance over extended
periods of time between the
metropolitan area, under Minnesota
Statutes, section 473.121, subdivision
2, and the nonmetropolitan area through
work program oversight and periodic
allocation decisions. For the purposes
of this paragraph, the match must be a
nonstate contribution, but may be
either cash or qualifying in-kind.
Recipients may receive funding for more
than one project in any given grant
period. Subdivision 16 applies to
grants awarded in the approved work
program. This appropriation is
available until June 30, 2008, at which
time the project must be completed and
final products delivered.

(k) Regional Park Planning for Nonmetropolitan
Urban Areas

$43,000 the first year and $43,000 the
second year are from the trust fund to
the commissioner of natural resources
for an agreement with the University of
Minnesota to develop a plan for a
system of regional recreation areas for
major outstate urban complexes in
Minnesota.

(l) Local and Regional Trail Grant Initiative Program

$350,000 the first year and $350,000
the second year are from the trust fund
to the commissioner of natural
resources to provide matching grants to
local units of government for the cost
of acquisition, development,
engineering services, and enhancement
of existing and new trail facilities.
Subdivision 16 applies to grants
awarded in the approved work program.
This appropriation is available until
June 30, 2008, at which time the
project must be completed and final
products delivered, unless an earlier
date is specified in the work program.
In addition, if a project financed
under this program receives a federal
grant award, the availability of the
financing from this paragraph for that
project is extended to equal the period
of the federal grant.

(m) Mesabi Trail

$500,000 the first year and $500,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with St.
Louis and Lake Counties Regional Rail
Authority for the seventh biennium to
acquire and develop segments for the
Mesabi Trail. This appropriation is
available until June 30, 2008, at which
time the project must be completed and
final products delivered. If this
project receives a federal grant award,
the availability of the financing from
this paragraph for the project is
extended to equal the period of the
federal grant.

(n) Cannon Valley Trail Belle Creek Bridge
Replacement

$150,000 the first year and $150,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with the
Cannon Valley Trail Joint Powers Board
for bridge replacement of the Belle
Creek Bridge on the Cannon Valley
Trail. This appropriation must be
matched by at least $44,000 of nonstate
money.

(o) Arrowhead Regional Bike Trail Connections Plan

$42,000 the first year and $41,000 the
second year are from the trust fund to
the commissioner of natural resources
for an agreement with the Arrowhead
Regional Development Commission to
analyze the Arrowhead's major bike
trails and plan new trail connections.

(p) Land Acquisition, Minnesota Landscape Arboretum

$325,000 the first year and $325,000
the second year are from the trust fund
to the University of Minnesota for an
agreement with the University of
Minnesota Landscape Arboretum
Foundation for the sixth biennium to
acquire land from willing sellers.
This appropriation must be matched by
an equal amount of nonstate money.
This appropriation is available until
June 30, 2008, at which time the
project must be completed and final
products delivered, unless an earlier
date is specified in the work program.

(q) Development and Rehabilitation of Minnesota
Shooting Ranges

$150,000 the first year and $150,000
the second year are from the trust fund
to the commissioner of natural
resources to provide technical
assistance and matching grants to local
communities and recreational shooting
and archery clubs for the purpose of
developing or rehabilitating shooting
and archery facilities for public use.
Recipient facilities must be open to
the general public at reasonable times
and for a reasonable fee on a walk-in
basis. This appropriation is available
until June 30, 2008, at which time the
project must be completed and final
products delivered, unless an earlier
date is specified in the work program.

(r) Birding Maps

$50,000 the first year and $50,000 the
second year are from the trust fund to
the commissioner of natural resources
for an agreement with Audubon Minnesota
to create a new birding trail guide for
the North Shore/Arrowhead region and
reprint and distribute guides for three
existing birding trails.

Subd. 7.

Water Resources 3,027,000 3,000,000

Summary by Fund

Trust Fund 2,999,000 3,000,000

Great Lakes Protection
Account 28,000

(a) Local Water Management Matching Challenge Grants

$500,000 the first year and $500,000
the second year are from the trust fund
to the Board of Water and Soil
Resources to accelerate the local water
management challenge grant program
under Minnesota Statutes, sections
103B.3361 to 103B.3369, through
matching grants to implement high
priority activities in state-approved
comprehensive water management plans.
For the purposes of this paragraph, the
match must be a nonstate contribution,
but may be either cash or qualifying
in-kind. The grants may be provided on
an advance basis as specified in the
work program. This appropriation is
available until June 30, 2008, at which
time the project must be completed and
final products delivered, unless an
earlier date is specified in the work
program.

(b) Accelerating and Enhancing Surface Water
Monitoring for Lakes and Streams

$300,000 the first year and $300,000
the second year are from the trust fund
to the commissioner of the Pollution
Control Agency for acceleration of
agency programs and cooperative
agreements with the Minnesota Lakes
Association, Rivers Council of
Minnesota, and the University of
Minnesota to accelerate monitoring
efforts through assessments, citizen
training, and implementation grants.
This appropriation is available until
June 30, 2008, at which time the
project must be completed and final
products delivered, unless an earlier
date is specified in the work program.

(c) Effects of Land Retirements on the
Minnesota River

$150,000 the first year and $150,000
the second year are from the trust fund
to the Board of Water and Soil
Resources for a cooperative agreement
with the U.S. Geological Survey to
evaluate effects of retired or
set-aside agricultural lands on the
water quality and aquatic habitat of
streams in the Minnesota River Basin in
order to enhance prioritization of
future land retirements. This
appropriation must be matched by an
equal amount of nonstate money. This
appropriation is available until June
30, 2008, at which time the project
must be completed and final products
delivered, unless an earlier date is
specified in the work program.

(d) Recycling Treated Municipal Wastewater for
Industrial Water Use

$150,000 the first year and $150,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with the
Metropolitan Council to determine the
feasibility of recycling treated
municipal wastewater for industrial
use, characterize industrial water
demand and quality, and determine the
costs to treat municipal wastewater to
meet specific industrial needs.

(e) Unwanted Hormone Therapy: Protecting Water
and Public Health

$150,000 the first year and $150,000
the second year are from the trust fund
to the University of Minnesota to
determine where behavior-altering
estrogenic compounds come from and how
they are distributed in wastewater
treatment plants. This appropriation
is available until June 30, 2008, at
which time the project must be
completed and final products delivered,
unless an earlier date is specified in
the work program.

(f) Climate Change Impacts on Minnesota's
Aquatic Resources

$125,000 the first year and $125,000
the second year are from the trust fund
to the University of Minnesota, Natural
Resources Research Institute, to
quantify climate, hydrologic, and
ecological variability and trends; and
identify indicators of future climate
change effects on aquatic systems.
This appropriation is available until
June 30, 2008, at which time the
project must be completed and final
products delivered, unless an earlier
date is specified in the work program.

(g) Green Roof Cost Share and Monitoring

$175,000 the first year and $175,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with Ramsey
Conservation District to install green,
vegetated roofs on four commercial or
industrial buildings in Roseville and
Falcon Heights and to monitor their
effectiveness for stormwater
management, flood reduction, water
quality, and energy efficiency. The
cost of the installations must be
matched by at least 50 percent nonstate
money.

(h) Woodchip Biofilter Treatment of Feedlot Runoff

$135,000 the first year and $135,000
the second year are from the trust fund
to the commissioner of natural
resources for agreements with Stearns
County Soil and Water Conservation
District and the University of
Minnesota to treat feedlot runoff with
woodchip biofilters to remove
pollutants and assess improvements to
surface water quality. This
appropriation is available until June
30, 2008, at which time the project
must be completed and final products
delivered, unless an earlier date is
specified in the work program.

(i) Improving Water Quality on the Central Sands

$294,000 the first year and $293,000
the second year are from the trust fund
to the commissioner of natural
resources for agreements with the
University of Minnesota and the Central
Lakes College Agricultural Center to
reduce nitrate and phosphorus losses to
groundwater and surface waters of sandy
ecoregions through the development,
promotion, and adoption of new farming
and land management practices and
techniques. This appropriation is
available until June 30, 2008, at which
time the project must be completed and
final products delivered, unless an
earlier date is specified in the work
program.

(j) Improving Impaired Watersheds: Conservation
Drainage Research

$150,000 the first year and $150,000
the second year are from the trust fund
to the commissioner of agriculture to
analyze conservation drainage systems
at University of Minnesota research and
outreach centers for opportunities to
retrofit drainage infrastructure with
water quality improvement
technologies. This appropriation is
available until June 30, 2008, at which
time the project must be completed and
final products delivered, unless an
earlier date is specified in the work
program.

(k) Hydrology, Habitat, and Energy Potential
of Mine Lakes

$188,000 the first year and $211,000
the second year are from the trust fund
to the commissioner of natural
resources for agency work and
agreements with Architectural
Resources, Inc., and Northeast
Technical Services, Inc., for a
coordinated effort of the Central Iron
Range Initiative to establish ultimate
mine water elevations, outflows, and
quality; design optimum future mineland
configurations for fish habitat and
lakeshore development; and evaluate
wind-pumped hydropower potential.
$62,000 the first year and $39,000 the
second year are from the trust fund to
the Minnesota Geological Survey at the
University of Minnesota to assess the
geology and mine pit morphometry.

(l) Hennepin County Beach Water Quality
Monitoring Project

$50,000 the first year and $50,000 the
second year are from the trust fund to
the commissioner of natural resources
for an agreement with Hennepin County
to develop a predictive model for
on-site determination of beach water
quality to prevent outbreaks of
waterborne illnesses and provide
related water safety outreach to the
public.

(m) Southwest Minnesota Floodwater Retention Projects

$250,000 the first year and $250,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with Area II
MN River Basin Projects, Inc., to
acquire easements and construct four
floodwater retention projects in the
Minnesota River Basin to improve water
quality and waterfowl habitat.

(n) Upgrades to Blue Heron Research Vessel

$28,000 is from the Great Lakes
protection account in the first year
and $133,000 the first year and
$134,000 the second year are from the
trust fund to the University of
Minnesota, Large Lakes Observatory, to
upgrade and overhaul the Blue Heron
Research Vessel.

(o) Bassett Creek Valley Channel Restoration

$87,000 the first year and $88,000 the
second year are from the trust fund to
the commissioner of natural resources
for an agreement with the city of
Minneapolis for design and engineering
activities for habitat restoration and
water quality and channel improvements
for Bassett Creek Valley.

(p) Restoration of Indian Lake

$100,000 the first year and $100,000
the second year are from the trust fund
to the commissioner of natural
resources for agreements with Indian
Lake Improvement District and Bemidji
State University to demonstrate the
removal of excess nutrients from Indian
Lake in Wright County. This
appropriation is available until June
30, 2008, at which time the project
must be completed and final products
delivered, unless an earlier date is
specified in the work program, and is
contingent on all appropriate permits
being obtained.

Subd. 8.

Land Use and Natural Resource
Information 1,000,000 1,000,000

Summary by Fund

Trust Fund 1,000,000 1,000,000

(a) Minnesota County Biological Survey

$500,000 the first year and $500,000
the second year are from the trust fund
to the commissioner of natural
resources for the tenth biennium to
accelerate the survey that identifies
significant natural areas and
systematically collects and interprets
data on the distribution and ecology of
native plant communities, rare plants,
and rare animals.

(b) Soil Survey

$250,000 the first year and $250,000
the second year are from the trust fund
to the Board of Water and Soil
Resources to accelerate digitizing of
completed soil surveys for Web-based
user application and for agreements
with Pine and Crow Wing Counties to
begin soil surveys. The new soil
surveys must be done on a cost-share
basis with local and federal funds.
This appropriation is available until
June 30, 2008, at which time the
project must be completed and final
products delivered, unless an earlier
date is specified in the work program.

(c) Land Cover Mapping for Natural Resource Protection

$125,000 the first year and $125,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with
Hennepin County to develop GIS tools
for prioritizing natural areas for
protection and restoration and to
update and complete land cover
classification mapping.

(d) Open Space Planning and Protection

$125,000 the first year and $125,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with Anoka
Conservation District to protect open
space by identifying high priority
natural resource corridors through
planning, conservation easements, and
land dedication as part of development
processes.

Subd. 9.

Agriculture and Natural
Resource Industries 1,342,000 1,341,000

Summary by Fund

Trust Fund 1,342,000 1,341,000

(a) Completing Third-Party Certification
of DNR Forest Lands

$125,000 the first year and $125,000
the second year are from the trust fund
to the commissioner of natural
resources for third-party assessment
and certification of 4,470,000 acres of
DNR-administered lands under forest
sustainability standards established by
two internationally recognized forest
certification systems, the Forest
Stewardship Council system, and the
Sustainable Forestry Initiative system.

(b) Third-Party Certification of Private Woodlands

$188,000 the first year and $188,000
the second year are from the trust fund
to the University of Minnesota, Cloquet
Forestry Center, to pilot a third-party
certification assessment framework for
nonindustrial private forest owners.

(c) Sustainable Management of Private Forest Lands

$437,000 the first year and $437,000
the second year are from the trust fund
to the commissioner of natural
resources to develop stewardship plans
for private forested lands, implement
stewardship plans on a cost-share basis
and for conservation easements matching
federal funds. This appropriation is
available until June 30, 2008, at which
time the project must be completed and
final products delivered, unless an
earlier date is specified in the work
program.

(d) Evaluating Riparian Timber Harvesting
Guidelines: Phase 2

$167,000 the first year and $166,000
the second year are from the trust fund
to the University of Minnesota for a
second biennium to assess the timber
harvesting riparian management
guidelines for postharvest impacts on
terrestrial, aquatic, and wildlife
habitat. This appropriation is
available until June 30, 2008, at which
time the project must be completed and
final products delivered, unless an
earlier date is specified in the work
program.

(e) Third Crops for Water Quality-Phase 2

$250,000 the first year and $250,000
the second year are from the trust fund
to the commissioner of natural
resources for cooperative agreements
with Rural Advantage and the University
of Minnesota to accelerate adoption of
third crops to enhance water quality,
diversify cropping systems, supply
bioenergy, and provide wildlife habitat
through demonstration, research, and
education. This appropriation is
available until June 30, 2008, at which
time the project must be completed and
final products delivered, unless an
earlier date is specified in the work
program.

(f) Bioconversion of Potato Waste into
Marketable Biopolymers

$175,000 the first year and $175,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with Bemidji
State University to evaluate the
bioconversion of potato waste into
plant-based plastics. This
appropriation is available until June
30, 2008, at which time the project
must be completed and final products
delivered, unless an earlier date is
specified in the work program.

Subd. 10.

Energy 1,896,000 1,896,000

Summary by Fund

Trust Fund 1,896,000 1,896,000

(a) Clean Energy Resource Teams and Community Wind
Energy Rebate Program

$350,000 the first year and $350,000
the second year are from the trust fund
to the commissioner of commerce.
$300,000 of this appropriation is to
provide technical assistance to
implement cost-effective conservation,
energy efficiency, and renewable energy
projects. $400,000 of this
appropriation is to assist two
Minnesota communities in developing
locally owned wind energy projects by
offering financial assistance rebates.

(b) Planning for Economic Development
via Energy Independence

$120,000 the first year and $120,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with the
University of Minnesota-Duluth to
evaluate the socioeconomic benefits of
statewide and community renewable
energy production and distribution by
analyzing system installation,
technical capabilities,
cost-competitiveness, economic impacts,
and policy incentives.

(c) Manure Methane Digester Compatible Wastes
and Electrical Generation

$50,000 the first year and $50,000 the
second year are from the trust fund to
the commissioner of agriculture to
research the potential for a centrally
located, multifarm manure digester and
the potential use of compatible waste
streams with manure digesters.

(d) Dairy Farm Digesters

$168,000 the first year and $168,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with the
Minnesota Project for a pilot project
to evaluate anaerobic digester
technology on average size dairy farms
of 50 to 300 cows.

(e) Wind to Hydrogen Demonstration

$400,000 the first year and $400,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with the
University of Minnesota, West Central
Research and Outreach Center, to
develop a model community-scale
wind-to-hydrogen facility.

(f) Natural Gas Production from
Agricultural Biomass

$50,000 the first year and $50,000 the
second year are from the trust fund to
the commissioner of natural resources
for an agreement with Sebesta Blomberg
and Associates to demonstrate potential
natural gas yield using anaerobic
digestion of blends of chopped grasses
or crop residue with hog manure and
determine optimum operating conditions
for conversion to natural gas.

(g) Biomass-Derived Oils for Generating Electricity
and Reducing Emissions

$75,000 the first year and $75,000 the
second year are from the trust fund to
the University of Minnesota to evaluate
the environmental and performance
benefits of using renewable
biomass-derived oils, such as soybean
oil, for generating electricity.

(h) Phillips Biomass Community Energy System

$450,000 the first year and $450,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with
Phillips Community Energy Cooperative
to assist in the distribution system
equipment and construction costs for a
biomass district energy system. This
appropriation is contingent on all
appropriate permits being obtained and
a signed commitment of financing for
the biomass electrical generating
facility being in place.

(i) Laurentian Energy Authority Biomass Project

$233,000 the first year and $233,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with
Virginia Public Utility to lease land
and plant approximately 1,000 acres of
trees to support a proposed conversion
to a biomass power plant.

Subd. 11.

Environmental Education 360,000 360,000

Summary by Fund

Trust Fund 360,000 360,000

(a) Enhancing Civic Understanding of Groundwater

$75,000 the first year and $75,000 the
second year are from the trust fund to
the commissioner of natural resources
for an agreement with the Science
Museum of Minnesota to create
groundwater exhibits and a statewide
traveling groundwater classroom
program. This appropriation is
available until June 30, 2008, at which
time the project must be completed and
final products delivered, unless an
earlier date is specified in the work
program.

(b) Cedar Creek Natural History Area Interpretive
Center and Restoration

$200,000 the first year and $200,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with the
University of Minnesota, Cedar Creek
Natural History Area, to restore 400
acres of savanna and prairie; construct
a Science Interpretive Center to
publicly demonstrate technologies for
energy efficiency; and create
interpretive trails. This
appropriation is available until June
30, 2008, at which time the project
must be completed and final products
delivered, unless an earlier date is
specified in the work program.

(c) Environmental Problem-Solving Model
for Twin Cities Schools

$38,000 the first year and $37,000 the
second year are from the trust fund to
the commissioner of natural resources
for an agreement with Eco Education to
train high school students and teachers
on environmental problem solving.

(d) Tamarack Nature Center Exhibits

$47,000 the first year and $48,000 the
second year are from the trust fund to
the commissioner of natural resources
for an agreement with Ramsey County
Parks and Recreation Department to
develop interactive ecological exhibits
at Tamarack Nature Center.

Subd. 12.

Children's Environmental
Health 100,000 100,000

Summary by Fund

Trust Fund 100,000 100,000

Minnesota Children's Pesticide Exposure
Reduction Initiative

$100,000 the first year and $100,000
the second year are appropriated to the
commissioner of agriculture to reduce
children's pesticide exposure through
parent education on alternative pest
control methods and safe pesticide use.

Subd. 13.

Data Availability Requirements

(a) During the biennium ending June 30,
2007, data collected by the projects
funded under this section that have
value for planning and management of
natural resource, emergency
preparedness, and infrastructure
investments must conform to the
enterprise information architecture
developed by the Office of Technology.
Spatial data must conform to geographic
information system guidelines and
standards outlined in that architecture
and adopted by the Minnesota Geographic
Data Clearinghouse at the Land
Management Information Center. A
description of these data that adheres
to Office of Technology geographic
metadata standards must be submitted to
the Land Management Information Center
to be made available online through the
clearinghouse, and the data themselves
must be accessible and free to the
public unless made private under the
Data Practices Act, Minnesota Statutes,
chapter 13.

(b) To the extent practicable, summary
data and results of projects funded
under this section should be readily
accessible on the Internet and
identified as an environment and
natural resources trust fund project.

(c) As part of project expenditures,
recipients of land acquisition
appropriations must provide the
information necessary to update public
recreation information maps to the
Department of Natural Resources in the
form specified by the department.

Subd. 14.

Project Requirements

It is a condition of acceptance of the
appropriations in this section that any
agency or entity receiving the
appropriation must comply with
Minnesota Statutes, chapter 116P, and
vegetation planted must be native to
Minnesota and preferably of the local
ecotype unless the work program
approved by the commission expressly
allows the planting of species that are
not native to Minnesota. Bridges that
are constructed with appropriations
under this section must be made out of
metal, concrete, or wood.

Subd. 15.

Match Requirements

Unless specifically authorized,
appropriations in this section that
must be matched and for which the match
has not been committed by December 31,
2005, are canceled, and in-kind
contributions may not be counted as
matching funds.

Subd. 16.

Payment Conditions and Capital Equipment Expenditures

All agreements, grants, or contracts
referred to in this section must be
administered on a reimbursement basis
unless otherwise provided in this
section. Notwithstanding Minnesota
Statutes, section 16A.41, expenditures
made on or after July 1, 2005, or the
date the work program is approved,
whichever is later, are eligible for
reimbursement unless otherwise provided
in this section. Payment must be made
upon receiving documentation that
project-eligible, reimbursable dollar
amounts have been expended, except that
reasonable amounts may be advanced to
projects to accommodate cash flow needs
or match federal funds. The advances
must be approved as part of the work
program. No expenditures for capital
equipment are allowed unless expressly
authorized in the project work program.

Subd. 17.

Purchase of Recycled and Recyclable Materials

A political subdivision, public or
private corporation, or other entity
that receives an appropriation in this
section must use the appropriation in
compliance with Minnesota Statutes,
sections 16B.121 and 16B.122, requiring
the purchase of recycled, repairable,
and durable materials; the purchase of
uncoated paper stock; and the use of
soy-based ink, the same as if it were a
state agency.

Subd. 18.

Energy Conservation

A recipient to whom an appropriation is
made in this section for a capital
improvement project shall ensure that
the project complies with the
applicable energy conservation
standards contained in law, including
Minnesota Statutes, sections 216C.19
and 216C.20, and rules adopted
thereunder. The recipient may use the
energy planning, advocacy, and state
energy office units of the Department
of Commerce to obtain information and
technical assistance on energy
conservation and alternative energy
development relating to the planning
and construction of the capital
improvement project.

Subd. 19.

Accessibility

Structural and nonstructural facilities
must meet the design standards in the
Americans with Disability Act (ADA)
accessibility guidelines.

Sec. 12.

Minnesota Statutes 2004, section 16A.125,
subdivision 5, is amended to read:

Subd. 5.

Forest trust lands.

new text begin (a) new text end The term "state forest
trust fund lands" as used in this subdivision, means public land
in trust under the Constitution set apart as "forest lands under
the authority of the commissioner" of natural resources as
defined by section 89.001, subdivision 13.

new text begin (b) new text end The commissioner of finance shall credit the revenue
from the forest trust fund lands to the forest suspense
account. The account must specify the trust funds interested in
the lands and the respective receipts of the lands.

new text begin (c) new text end After a fiscal year, the commissioner of finance shall
certify the total costs incurred for forestry during that year
under appropriations for the protection, improvement,
administration, and management of state forest trust fund lands
and construction and improvement of forest roads to enhance the
forest value of the lands. The certificate must specify the
trust funds interested in the lands. The commissioner of
natural resources shall supply the commissioner of finance with
the information needed for the certificate.

new text begin (d) new text end After a fiscal year, the commissioner shall distribute
the receipts credited to the suspense account during that fiscal
year as follows:

deleted text begin (a) deleted text end new text begin (1) new text end the amount of the certified costs incurred by the
state for forest management new text begin , forest improvement, and road
improvement new text end during the fiscal year shall be transferred to
the deleted text begin general fund. deleted text end new text begin forest management investment account
established under section 89.039;
new text end

new text begin (2) the balance of the certified costs incurred by the
state during the fiscal year shall be transferred to the general
fund; and
new text end

deleted text begin (b) deleted text end new text begin (3) new text end the balance of the receipts shall then be returned
prorated to the trust funds in proportion to their respective
interests in the lands which produced the receipts.

Sec. 13.

Minnesota Statutes 2004, section 84.027,
subdivision 12, is amended to read:

Subd. 12.

Property disposal; gift acknowledgment;
advertising sales.

(a) The commissioner may give away to
members of the public items with a value of less than deleted text begin $10 deleted text end new text begin $50
new text end that are intended to promote conservation of natural resources
or create awareness of the state and its resources or natural
resource management programs. The total value of items given to
the public under this paragraph may not exceed $25,000 per year.

(b) The commissioner may recognize the contribution of
money or in-kind services on plaques, signs, publications,
audio-visual materials, and media advertisements by allowing the
organization's contribution to be acknowledged in print of
readable size.

(c) The commissioner may accept paid advertising for
departmental publications. Advertising revenues received are
appropriated to the commissioner to be used to defray costs of
publications, media productions, or other informational
materials. The commissioner may not accept paid advertising
from any elected official or candidate for elective office.

Sec. 14.

Minnesota Statutes 2004, section 84.027,
subdivision 15, is amended to read:

Subd. 15.

Electronic transactions.

(a) The commissioner
may receive an application for, sell, and issue any license,
stamp, permit, new text begin pass, sticker, duplicate safety training
certification, new text end registration, or transfer under the jurisdiction
of the commissioner by electronic means, including by telephone.
Notwithstanding section 97A.472, electronic and telephone
transactions may be made outside of the state. The commissioner
may:

(1) provide for the electronic transfer of funds generated
by electronic transactions, including by telephone;

(2) assign deleted text begin a license deleted text end new text begin an new text end identification number to an
applicant who purchases a hunting or fishing license new text begin or
recreational vehicle registration new text end by electronic means, to serve
as temporary authorization to engage in the deleted text begin licensed deleted text end activity
new text begin requiring a license or registration new text end until the license new text begin or
registration new text end is received or expires;

(3) charge and permit agents to charge a fee of individuals
who make electronic transactions and transactions by
telephone new text begin or Internet new text end , including deleted text begin the deleted text end issuing deleted text begin fee under section
97A.485, subdivision 6, deleted text end new text begin fees new text end and an additional transaction fee
not to exceed $3.50;

(4) deleted text begin collect issuing or filing fees as provided under
sections 84.788, subdivision 3, paragraph (e); 84.798,
subdivision 3, paragraph (b); 84.82, subdivision 2, paragraph
(d); 84.8205, subdivisions 5 and 6; 84.922, subdivision 2,
paragraph (e); 85.41, subdivision 5; 86B.415, subdivision 8; and
97A.485, subdivision 6, and collect deleted text end new text begin establish, by written order,
new text end an electronic licensing system commission deleted text begin on deleted text end new text begin to be paid by
revenues generated from all new text end sales deleted text begin of licenses as provided under
sections 85.43, paragraph (b), and 97A.485, subdivision 7 deleted text end new text begin made
through the electronic licensing system. The commissioner shall
establish the commission in a manner that neither significantly
overrecovers nor underrecovers costs involved in providing the
electronic licensing system new text end ; and

(5) adopt rules to administer the provisions of this
subdivision.

(b) deleted text begin Establishment of deleted text end The deleted text begin transaction fee deleted text end new text begin fees established
new text end under paragraph (a), clause (3) new text begin , and the commission established
under paragraph (a), clause (4) new text end , deleted text begin is deleted text end new text begin are new text end not subject to the
rulemaking procedures of chapter 14 and section 14.386 does not
apply.

(c) Money received from fees and commissions collected
under this subdivision, including interest earned, is annually
appropriated from the game and fish fund and the natural
resources fund to the commissioner for the cost of electronic
licensing.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 6, 2005.
new text end

Sec. 15.

Minnesota Statutes 2004, section 84.0274, is
amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Exception for nonprofit organizations and
governmental entities. new text end

new text begin When the commissioner acquires land or
interests in land from a nonprofit organization or governmental
entity, any or all of the provisions of this section may be
waived by mutual agreement of the commissioner and the nonprofit
organization or governmental entity.
new text end

Sec. 16.

Minnesota Statutes 2004, section 84.0274, is
amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Right of first refusal agreement. new text end

new text begin The
commissioner may enter into a right of first refusal agreement
with a landowner prior to determining the value of the land. No
right of first refusal agreement shall be made for a period of
greater than two years and payment to the landowner for entry
into the agreement shall not exceed $5,000.
new text end

Sec. 17.

Minnesota Statutes 2004, section 84.0911,
subdivision 2, is amended to read:

Subd. 2.

Receipts.

Money received from the sale of wild
rice licenses issued by the commissioner under section 84.091,
subdivision 3, paragraph (a), clauses (1), (3), and (4), and
subdivision 3, paragraph (b), new text begin except for the electronic
licensing system commission established by the commissioner
under section 84.027, subdivision 15, new text end shall be credited to the
wild rice management account.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 6, 2005.
new text end

Sec. 18.

Minnesota Statutes 2004, section 84.631, is
amended to read:

84.631 ROAD EASEMENTS ACROSS STATE LANDS.

new text begin (a) new text end Except as provided in section 85.015, subdivision 1b,
the commissioner, on behalf of the state, may convey a road
easement across state land under the commissioner's jurisdiction
other than school trust land, to a private person requesting an
easement for access to property owned by the person only if the
following requirements are met: (1) there are no reasonable
alternatives to obtain access to the property; and (2) the
exercise of the easement will not cause significant adverse
environmental or natural resource management impacts.

new text begin (b) new text end The commissioner shall:

(1) require the applicant to pay the market value of the
easement;

(2) provide that the easement reverts to the state in the
event of nonuse; and

(3) impose other terms and conditions of use as necessary
and appropriate under the circumstances.

new text begin (c) An applicant shall submit a fee of up to $2,000 with
each application for a road easement across state land. The
commissioner must give the applicant an estimate of the costs of
the road easement before the applicant submits the fee. The
application fee is nonrefundable, even if the application is
withdrawn or denied.
new text end

new text begin (d) Fees collected under paragraph (c) must be deposited in
the land management account in the natural resources fund.
new text end

Sec. 19.

Minnesota Statutes 2004, section 84.775,
subdivision 1, is amended to read:

Subdivision 1.

Civil citation; authority to issue.

(a) A
conservation officer or other licensed peace officer may issue a
civil citation to a person who operates:

(1) an off-highway motorcycle in violation of sections
84.773 new text begin , subdivision 1 or 2, clause (1) new text end ; 84.777; 84.788 to
84.795; or 84.90;

(2) an off-road vehicle in violation of sections 84.773 new text begin ,
subdivision 1 or 2, clause (1) new text end ; 84.777; 84.798 to 84.804; or
84.90; or

(3) an all-terrain vehicle in violation of sections 84.773 new text begin ,
subdivision 1 or 2, clause (1) new text end ; 84.777; 84.90; or 84.922 to
84.928.

(b) A civil citation new text begin under paragraph (a) new text end shall require
restitution for public and private property damage and impose a
penalty of:

(1) $100 for the first offense;

(2) $200 for the second offense; and

(3) $500 for third and subsequent offenses.

(c) new text begin A conservation officer or other licensed peace officer
may issue a civil citation to a person who operates an
off-highway motorcycle, off-road vehicle, or all-terrain vehicle
in violation of section 84.773, subdivision 2, clause (2) or
(3). A civil citation under this paragraph shall require
restitution for damage to wetlands and impose a penalty of:
new text end

new text begin (1) $100 for the first offense;
new text end

new text begin (2) $500 for the second offense; and
new text end

new text begin (3) $1,000 for third and subsequent offenses.
new text end

new text begin (d) new text end If the peace officer determines that there is damage to
property requiring restitution, the commissioner must send a
written explanation of the extent of the damage and the cost of
the repair by first class mail to the address provided by the
person receiving the citation within 15 days of the date of the
citation.

new text begin (e) An off-road vehicle or all-terrain vehicle that is
equipped with a snorkel device and receives a civil citation
under this section is subject to twice the penalty amounts in
paragraphs (b) and (c).
new text end

Sec. 20.

Minnesota Statutes 2004, section 84.780, is
amended to read:

84.780 OFF-HIGHWAY VEHICLE DAMAGE ACCOUNT.

(a) The off-highway vehicle damage account is created in
the natural resources fund. Money in the off-highway vehicle
damage account is appropriated to the commissioner of natural
resources for the repair or restoration of property damaged by
the operation of off-highway vehicles in an unpermitted area
after August 1, 2003, and for the costs of administration for
this section. Before the commissioner may make a payment from
this account, the commissioner must determine whether the damage
to the property was caused by the unpermitted use of off-highway
vehicles, that the applicant has made reasonable efforts to
identify the responsible individual and obtain payment from the
individual, and that the applicant has made reasonable efforts
to prevent reoccurrence. By June 30, deleted text begin 2005 deleted text end new text begin 2008 new text end , the
commissioner of finance must transfer the remaining balance in
the account to the off-highway motorcycle account under section
84.794, the off-road vehicle account under section 84.803, and
the all-terrain vehicle account under section 84.927. The
amount transferred to each account must be proportionate to the
amounts received in the damage account from the relevant
off-highway vehicle accounts.

(b) Determinations of the commissioner under this section
may be made by written order and are exempt from the rulemaking
provisions of chapter 14. Section 14.386 does not apply.

(c) This section expires July 1, deleted text begin 2005 deleted text end new text begin 2008 new text end .

Sec. 21.

new text begin [84.781] USE OF DEPARTMENT RESOURCES.
new text end

new text begin The commissioner of natural resources may permit Department
of Natural Resources personnel and equipment from the Division
of Trails and Waterways to be used to assist local units of
government in developing and maintaining off-highway vehicle
grant-in-aid trails located on property owned by or under the
control of the local unit of government.
new text end

Sec. 22.

Minnesota Statutes 2004, section 84.788,
subdivision 3, is amended to read:

Subd. 3.

Application; issuance; reports.

(a) Application
for registration or continued registration must be made to the
commissioner or an authorized deputy registrar of motor vehicles
in a form prescribed by the commissioner. The form must state
the name and address of every owner of the off-highway
motorcycle.

(b) A person who purchases from a retail dealer an
off-highway motorcycle shall make application for registration
to the dealer at the point of sale. The dealer shall issue a
new text begin dealer new text end temporary ten-day registration permit to each purchaser
who applies to the dealer for registration. The dealer shall
submit the completed registration applications and fees to the
deputy registrar at least once each week. No fee may be charged
by a dealer to a purchaser for providing the temporary permit.

(c) Upon receipt of the application and the appropriate
fee, the commissioner or deputy registrar shall issue to the
applicant, or provide to the dealer, deleted text begin a 60-day temporary receipt
and shall assign a deleted text end new text begin an assigned new text end registration number deleted text begin that deleted text end new text begin or a
commissioner or deputy registrar temporary ten-day permit. Once
issued, the registration number new text end must be affixed to the
motorcycle deleted text begin in a manner prescribed by the commissioner deleted text end new text begin according
to paragraph (f) new text end . A dealer subject to paragraph (b) shall
provide the registration materials deleted text begin and deleted text end new text begin or new text end temporary
deleted text begin receipt deleted text end new text begin permit new text end to the purchaser within the ten-day temporary
permit period.

(d) The commissioner shall develop a registration system to
register vehicles under this section. A deputy registrar of
motor vehicles acting under section 168.33, is also a deputy
registrar of off-highway motorcycles. The commissioner of
natural resources in agreement with the commissioner of public
safety may prescribe the accounting and procedural requirements
necessary to ensure efficient handling of registrations and
registration fees. Deputy registrars shall strictly comply with
the accounting and procedural requirements.

(e) In addition to other fees prescribed by law, a filing
fee of $4.50 is charged for each off-highway motorcycle
registration renewal, duplicate or replacement registration
card, and replacement decal and a filing fee of $7 is charged
for each off-highway motorcycle registration and registration
transfer issued by:

(1) a deputy registrar and must be deposited in the
treasury of the jurisdiction where the deputy is appointed, or
kept if the deputy is not a public official; or

(2) the commissioner and must be deposited in the state
treasury and credited to the off-highway motorcycle account.

new text begin (f) Unless exempted in paragraph (g), the owner of an
off-highway motorcycle must display a registration decal issued
by the commissioner. If the motorcycle is licensed as a motor
vehicle, a registration decal must be affixed on the upper left
corner of the rear license plate. If the motorcycle is not
licensed as a motor vehicle, the decal must be attached on the
side of the motorcycle and may be attached to the fork tube.
The decal must be attached in a manner so that it is visible
while a rider is on the motorcycle. The issued decals must be
of a size to work within the constraints of the electronic
licensing system, not to exceed three inches high and three
inches wide.
new text end

new text begin (g) Display of a registration decal is not required for an
off-highway motorcycle:
new text end

new text begin (1) while being operated on private property; or
new text end

new text begin (2) while competing in a closed-course competition event.
new text end

Sec. 23.

Minnesota Statutes 2004, section 84.788, is
amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Refunds. new text end

new text begin The commissioner may issue a refund
on a registration, not including any issuing fees paid under
subdivision 3, paragraph (e), or section 84.027, subdivision 15,
paragraph (a), clause (3), if the refund request is received
within 12 months of the original registration and:
new text end

new text begin (1) the off-highway motorcycle was registered incorrectly
by the commissioner or the deputy registrar; or
new text end

new text begin (2) the off-highway motorcycle was registered twice, once
by the dealer and once by the customer.
new text end

Sec. 24.

Minnesota Statutes 2004, section 84.789, is
amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Sound emissions. new text end

new text begin (a) On and after July 1, 2006,
off-highway motorcycles, when operating on public lands, shall
at all times be equipped with a silencer or other device that
limits sound emissions according to this subdivision.
new text end

new text begin (b) Sound emissions of competition off-highway motorcycles
manufactured on or after January 1, 1998, are limited to not
more than 96 dbA and, if manufactured prior to January 1, 1998,
to not more than 99 dbA, when measured from a distance of 20
inches using test procedures established by the Society of
Automotive Engineers under Standard J-1287, as applicable.
new text end

new text begin (c) Sound emissions of all other off-highway motorcycles
are limited to not more than 96 dbA if manufactured on or after
January 1, 1986, and not more than 99 dbA if manufactured prior
to January 1, 1986, when measured from a distance of 20 inches
using test procedures established by the Society of Automotive
Engineers under Standard J-1287, as applicable.
new text end

new text begin (d) Off-highway motorcycles operating in closed course
competition events are excluded from the requirements of this
subdivision.
new text end

Sec. 25.

Minnesota Statutes 2004, section 84.791,
subdivision 1, is amended to read:

Subdivision 1.

Program established new text begin ; when required new text end .

new text begin (a)
new text end The commissioner shall establish a comprehensive off-highway
motorcycle environment and safety education and training
program, including the preparation and dissemination of vehicle
information and safety advice to the public, the training of
off-highway motorcycle operators, and the issuance of
off-highway motorcycle safety certificates to operators under
the age of 16 years who successfully complete the off-highway
motorcycle environment and safety education and training courses.

new text begin (b) An individual who is convicted of violating a law
related to the operation of an off-highway motorcycle must
successfully complete the environment and safety education and
training program established under paragraph (a) before
continuing operation of an off-highway motorcycle.
new text end

Sec. 26.

Minnesota Statutes 2004, section 84.791,
subdivision 2, is amended to read:

Subd. 2.

Fees.

For the purposes of administering the
program and to defray a portion of the expenses of training and
certifying vehicle operators, the commissioner shall collect a
fee not to exceed $5 from each person who receives the training.
The commissioner shall collect a fee for issuing a duplicate
off-highway motorcycle safety certificate. The commissioner
shall establish the fee for a duplicate off-highway motorcycle
safety certificate new text begin , to include a $1 issuing fee for licensing
agents, new text end that neither significantly overrecovers nor
underrecovers costs, including overhead costs, involved in
providing the service. The fees deleted text begin must deleted text end new text begin , except for the issuing
fee for licensing agents under this subdivision, shall new text end be
deposited in the state treasury and credited to the off-highway
motorcycle account new text begin in the natural resources fund new text end .

Sec. 27.

Minnesota Statutes 2004, section 84.798,
subdivision 1, is amended to read:

Subdivision 1.

General requirements.

new text begin (a) new text end Unless exempted
under new text begin paragraph (b) or new text end subdivision 2, after January 1, 1995, a
person may not operate and an owner may not give permission for
another to operate deleted text begin a vehicle off-road, nor may a person have deleted text end an
off-road vehicle deleted text begin not registered under chapter 168 in possession
at an off-road vehicle staging area, or designated trail deleted text end new text begin on
off-road vehicle-designated trails new text end or deleted text begin area deleted text end new text begin areas on land
administered by the commissioner, or on off-road vehicle
grant-in-aid trails and areas funded under section 84.803 new text end ,
unless the vehicle has been registered under this section.

new text begin (b) Annually on the third Saturday of May, nonregistered
off-road vehicles may be operated at the Iron Range Off-Highway
Vehicle Recreation Area.
new text end

Sec. 28.

new text begin [84.8015] EDUCATION AND TRAINING.
new text end

new text begin Subdivision 1. new text end

new text begin Program established when required. new text end

new text begin (a)
The commissioner shall establish a comprehensive off-road
vehicle environment and safety education and training program,
including the preparation and dissemination of vehicle
information and safety advice to the public, the training of
off-road vehicle operators, and the issuance of off-road vehicle
safety certificates to operators 16 to 18 years of age who
successfully complete the off-road vehicle environment and
safety education and training courses.
new text end

new text begin (b) Beginning July 1, 2006, an individual who is convicted
of violating a law related to the operation of an off-road
vehicle must successfully complete the environment and safety
education and training program established under paragraph (a)
before continuing operation of an off-road vehicle.
new text end

new text begin Subd. 2. new text end

new text begin Fees. new text end

new text begin For the purposes of administering the
program and to defray a portion of the expenses of training and
certifying vehicle operators, the commissioner shall collect a
fee not to exceed $15 from each person who receives the
training. The commissioner shall collect a fee for issuing a
duplicate off-road vehicle safety certificate. The commissioner
shall establish the fee for a duplicate off-road vehicle safety
certificate that neither significantly overrecovers nor
underrecovers costs, including overhead costs, involved in
providing the service. The fees must be deposited in the state
treasury and credited to the off-road vehicle account.
new text end

new text begin Subd. 3. new text end

new text begin Cooperation and consultation. new text end

new text begin The commissioner
shall cooperate with private organizations and associations,
private and public corporations, and local governmental units in
furtherance of the program established under this section. The
commissioner shall consult with the commissioner of public
safety in regard to training program subject matter and
performance testing that leads to the certification of off-road
vehicle operators.
new text end

new text begin Subd. 4. new text end

new text begin Reciprocity with other states. new text end

new text begin The commissioner
may enter into reciprocity agreements or otherwise certify
off-road vehicle environment and safety education and training
courses from other states that are substantially similar to
in-state courses. Proof of completion of a course subject to a
reciprocity agreement or certified as substantially similar is
adequate to meet the safety certificate requirements of this
section.
new text end

Sec. 29.

Minnesota Statutes 2004, section 84.798, is
amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Refunds. new text end

new text begin The commissioner may issue a refund
on a registration, not including any issuing fees paid under
subdivision 3, paragraph (b), or section 84.027, subdivision 15,
paragraph (a), clause (3), if the refund request is received
within 12 months of the original registration and the vehicle
was registered incorrectly by the commissioner or the deputy
registrar.
new text end

Sec. 30.

Minnesota Statutes 2004, section 84.82,
subdivision 2, is amended to read:

Subd. 2.

Application, issuance, reports, additional fee.

(a) Application for registration or reregistration shall be made
to the commissioner or an authorized deputy registrar of motor
vehicles in a format prescribed by the commissioner and shall
state the legal name and address of every owner of the
snowmobile.

(b) A person who purchases a snowmobile from a retail
dealer shall make application for registration to the dealer at
the point of sale. The dealer shall issue a new text begin dealer new text end temporary
new text begin ten-day new text end registration permit to each purchaser who applies to the
dealer for registration. deleted text begin The temporary registration is valid
for 60 days from the date of issue. deleted text end Each retail dealer shall
submit completed registration and fees to the deputy registrar
at least once a week. new text begin No fee may be charged by a dealer to a
purchaser for providing the temporary permit.
new text end

new text begin (c) new text end Upon receipt of the application and the appropriate fee
as hereinafter provided, deleted text begin such snowmobile shall be registered and
a deleted text end new text begin the commissioner or deputy registrar shall issue to the
applicant, or provide to the dealer, an assigned new text end registration
number deleted text begin assigned which shall deleted text end new text begin or a commissioner or deputy
registrar temporary ten-day permit. Once issued, the
registration number must new text end be affixed to the snowmobile in a
clearly visible and permanent manner for enforcement purposes as
the commissioner of natural resources shall prescribe. new text begin A dealer
subject to paragraph (b) shall provide the registration
materials or temporary permit to the purchaser within the
temporary ten-day permit period. new text end The registration is not valid
unless signed by at least one owner.

deleted text begin (c) deleted text end new text begin (d) new text end Each deputy registrar of motor vehicles acting
pursuant to section 168.33, shall also be a deputy registrar of
snowmobiles. The commissioner of natural resources in agreement
with the commissioner of public safety may prescribe the
accounting and procedural requirements necessary to assure
efficient handling of registrations and registration fees.
Deputy registrars shall strictly comply with these accounting
and procedural requirements.

deleted text begin (d) deleted text end new text begin (e) new text end A fee of $2 in addition to that otherwise
prescribed by law shall be charged for:

(1) each snowmobile registered by the registrar or a deputy
registrar and the additional fee shall be disposed of in the
manner provided in section 168.33, subdivision 2; or

(2) each snowmobile registered by the commissioner and the
additional fee shall be deposited in the state treasury and
credited to the snowmobile trails and enforcement account in the
natural resources fund.

Sec. 31.

Minnesota Statutes 2004, section 84.82, is
amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Refunds. new text end

new text begin The commissioner may issue a refund
on a registration, not including any issuing fees paid under
subdivision 2, paragraph (e), or section 84.027, subdivision 15,
paragraph (a), clause (3), if the refund request is received
within 12 months of the original registration and:
new text end

new text begin (1) the snowmobile was registered incorrectly by the
commissioner or the deputy registrar; or
new text end

new text begin (2) the snowmobile was registered twice, once by the dealer
and once by the customer.
new text end

Sec. 32.

Minnesota Statutes 2004, section 84.8205,
subdivision 1, is amended to read:

Subdivision 1.

Sticker required; fee.

A person may not
operate a snowmobile deleted text begin that is not registered in this state deleted text end on a
state or grant-in-aid snowmobile trail unless a snowmobile state
trail sticker is affixed to the snowmobile. The commissioner of
natural resources shall issue a sticker upon application and
payment of a $15 fee. new text begin The fee for a three-year snowmobile state
trail sticker that is purchased at the time of snowmobile
registration is $30. In addition to other penalties prescribed
by law, a person in violation of this subdivision must purchase
an annual state trail sticker for a fee of $30. new text end The sticker is
valid from November 1 through April 30. Fees collected under
this section new text begin , except for the issuing fee for licensing agents
under this section and for the electronic licensing system
commission established by the commissioner under section 84.027,
subdivision 15, new text end shall be deposited in the state treasury and
credited to the snowmobile trails and enforcement account in the
natural resources fund new text begin and must be used for grants-in-aid, trail
maintenance, grooming, and easement acquisition new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 6, 2005.
new text end

Sec. 33.

Minnesota Statutes 2004, section 84.8205,
subdivision 3, is amended to read:

Subd. 3.

License agents.

deleted text begin County auditors are appointed
agents of the commissioner for the sale of snowmobile state
trail stickers. deleted text end The commissioner may appoint deleted text begin other state
agencies as deleted text end agents deleted text begin for the sale of the deleted text end new text begin to issue and sell state
trail new text end stickers. deleted text begin A county auditor may appoint subagents within
the county or within adjacent counties to sell stickers. Upon
appointment of a subagent, the auditor shall notify the
commissioner of the name and address of the subagent. The
auditor may revoke the appointment of a subagent, and deleted text end The
commissioner may revoke the appointment of deleted text begin a state agency deleted text end new text begin an
agent new text end at any time. deleted text begin The commissioner may require an auditor to
revoke a subagent's appointment. The auditor shall furnish
stickers on consignment to any subagent who furnishes a surety
bond in favor of the county in an amount at least equal to the
value of the stickers to be consigned to that subagent. A
surety bond is not required for a state agency appointed by the
commissioner. The county auditor shall be responsible for all
stickers issued to and user fees received by agents except in a
county where the county auditor does not retain fees paid for
license purposes. In these counties, the responsibilities
imposed by this section upon the county auditor are imposed upon
the county. deleted text end The commissioner may deleted text begin promulgate deleted text end new text begin adopt new text end additional
rules deleted text begin governing the accounting and procedures for handling state
trail stickers deleted text end as provided in section 97A.485, subdivision 11.

deleted text begin Any resident desiring to sell snowmobile state trail
stickers may either purchase for cash or obtain on consignment
stickers from a county auditor in groups of not less than ten
individual stickers. In selling stickers, the resident shall be
deemed a subagent of the county auditor and the commissioner,
and deleted text end new text begin An agent new text end shall observe all rules deleted text begin promulgated deleted text end new text begin adopted new text end by the
commissioner for accounting and handling of deleted text begin licenses and
deleted text end stickers pursuant to section 97A.485, subdivision 11.

deleted text begin The county auditor deleted text end new text begin An agent new text end shall promptly deposit new text begin and
remit new text end all money received from the sale of the stickers deleted text begin with the
county treasurer and shall promptly transmit any reports
required by the commissioner, plus 96 percent of the price paid
by each stickerholder deleted text end , exclusive of the issuing fee, deleted text begin for each
sticker sold or consigned by the auditor and subsequently sold
to a stickerholder during the accounting period. The county
auditor shall retain as a commission four percent of all sticker
fees, excluding the issuing fee for stickers consigned to
subagents and the issuing fee on stickers sold by the auditor to
stickerholders deleted text end new text begin to the commissioner new text end .

deleted text begin Unsold stickers in the hands of any subagent shall be
redeemed by the commissioner if presented for redemption within
the time prescribed by the commissioner. Any stickers not
presented for redemption within the period prescribed shall be
conclusively presumed to have been sold, and the subagent
possessing the same or to whom they are charged shall be
accountable.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 6, 2005.
new text end

Sec. 34.

Minnesota Statutes 2004, section 84.8205,
subdivision 4, is amended to read:

Subd. 4.

deleted text begin distribution deleted text end new text begin issuance new text end of stickers.

The
commissioner new text begin and agents new text end shall deleted text begin provide deleted text end new text begin issue and sell snowmobile
state trail new text end stickers deleted text begin to all agents authorized to issue stickers
by the commissioner deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 6, 2005.
new text end

Sec. 35.

Minnesota Statutes 2004, section 84.8205,
subdivision 6, is amended to read:

Subd. 6.

Duplicate state trail stickers.

The
commissioner new text begin and agents new text end shall issue a duplicate sticker to
persons whose sticker is lost or destroyed using the process
established under section 97A.405, subdivision 3, and rules
promulgated thereunder. The fee for a duplicate state trail
sticker is $2, with an issuing fee of 50 cents.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 6, 2005.
new text end

Sec. 36.

Minnesota Statutes 2004, section 84.83,
subdivision 3, is amended to read:

Subd. 3.

Purposes for the account.

The money deposited
in the account and interest earned on that money may be expended
only as appropriated by law for the following purposes:

(1) for a grant-in-aid program to counties and
municipalities for construction and maintenance of snowmobile
trails, including maintenance of trails on lands and waters of
Voyageurs National Park new text begin , on Lake of the Woods, on Rainy Lake,
and on the following lakes in St. Louis County: Burntside,
Crane, Little Long, Mud, Pelican, Shagawa, and Vermilion new text end ;

(2) for acquisition, development, and maintenance of state
recreational snowmobile trails;

(3) for snowmobile safety programs; and

(4) for the administration and enforcement of sections
84.81 to 84.91 and appropriated grants to local law enforcement
agencies.

Sec. 37.

Minnesota Statutes 2004, section 84.83,
subdivision 4, is amended to read:

Subd. 4.

Provisions applicable to funding recipients.

(a) Recipients of Minnesota trail assistance program funds must
be afforded the same protection and be held to the same standard
of liability as a political subdivision under chapter 466 for
activities associated with the administration, design,
construction, maintenance, and grooming of snowmobile trails.

(b) Recipients of Minnesota trail assistance program funds
who maintain ice trails on new text begin public waters listed under
subdivision 3, clause (1), or on new text end waters of Voyageurs National
Park are expressly immune from liability under section 466.03,
subdivision 6e.

Sec. 38.

Minnesota Statutes 2004, section 84.86,
subdivision 1, is amended to read:

Subdivision 1.

Required rules.

With a view of achieving
maximum use of snowmobiles consistent with protection of the
environment the commissioner of natural resources shall adopt
rules in the manner provided by chapter 14, for the following
purposes:

(1) Registration of snowmobiles and display of registration
numbers.

(2) Use of snowmobiles insofar as game and fish resources
are affected.

(3) Use of snowmobiles on public lands and waters, or on
grant-in-aid trails.

(4) Uniform signs to be used by the state, counties, and
cities, which are necessary or desirable to control, direct, or
regulate the operation and use of snowmobiles.

(5) Specifications relating to snowmobile mufflers.

(6) A comprehensive snowmobile information and safety
education and training program, including but not limited to the
preparation and dissemination of snowmobile information and
safety advice to the public, the training of snowmobile
operators, and the issuance of snowmobile safety certificates to
snowmobile operators who successfully complete the snowmobile
safety education and training course. For the purpose of
administering such program and to defray expenses of training
and certifying snowmobile operators, the commissioner shall
collect a fee from each person who receives the youth or adult
training. The commissioner shall collect a fee new text begin , to include a $1
issuing fee for licensing agents, new text end for issuing a duplicate
snowmobile safety certificate. The commissioner shall establish
both fees in a manner that neither significantly overrecovers
nor underrecovers costs, including overhead costs, involved in
providing the services. The fees are not subject to the
rulemaking provisions of chapter 14 and section 14.386 does not
apply. The fees may be established by the commissioner
notwithstanding section 16A.1283. The fees deleted text begin must deleted text end new text begin , except for the
issuing fee for licensing agents under this subdivision, shall
new text end be deposited in the snowmobile trails and enforcement account new text begin in
the natural resources fund new text end and the amount thereof new text begin , except for
the electronic licensing system commission established by the
commissioner under section 84.027, subdivision 15, and issuing
fees collected by the commissioner, new text end is appropriated annually to
the Enforcement Division of the Department of Natural Resources
for the administration of such programs. In addition to the fee
established by the commissioner, instructors may charge each
person up to the established fee amount for class materials and
expenses. The commissioner shall cooperate with private
organizations and associations, private and public corporations,
and local governmental units in furtherance of the program
established under this clause. School districts may cooperate
with the commissioner and volunteer instructors to provide space
for the classroom portion of the training. The commissioner
shall consult with the commissioner of public safety in regard
to training program subject matter and performance testing that
leads to the certification of snowmobile operators.

(7) The operator of any snowmobile involved in an accident
resulting in injury requiring medical attention or
hospitalization to or death of any person or total damage to an
extent of $500 or more, shall forward a written report of the
accident to the commissioner on such form as the commissioner
shall prescribe. If the operator is killed or is unable to file
a report due to incapacitation, any peace officer investigating
the accident shall file the accident report within ten business
days.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 6, 2005.
new text end

Sec. 39.

Minnesota Statutes 2004, section 84.922,
subdivision 2, is amended to read:

Subd. 2.

Application, issuance, reports.

(a) Application
for registration or continued registration shall be made to the
commissioner deleted text begin of natural resources, the commissioner of public
safety deleted text end or an authorized deputy registrar of motor vehicles in a
form prescribed by the commissioner. The form must state the
name and address of every owner of the vehicle.

(b) A person who purchases an all-terrain vehicle from a
retail dealer shall make application for registration to the
dealer at the point of sale. The dealer shall issue a new text begin dealer
new text end temporary ten-day registration permit to each purchaser who
applies to the dealer for registration. The dealer shall submit
the completed registration application and fees to the deputy
registrar at least once each week. No fee may be charged by a
dealer to a purchaser for providing the temporary permit.

(c) Upon receipt of the application and the appropriate
fee, the commissioner or deputy registrar shall issue to the
applicant, or provide to the dealer, deleted text begin a 60-day temporary receipt
and shall assign a deleted text end new text begin an assigned new text end registration number deleted text begin that deleted text end new text begin or a
commissioner or deputy registrar temporary ten-day permit. Once
issued, the registration number new text end must be affixed to the vehicle
in a manner prescribed by the commissioner. A dealer subject to
paragraph (b) shall provide the registration materials deleted text begin and deleted text end new text begin or
new text end temporary deleted text begin receipt deleted text end new text begin permit new text end to the purchaser within the ten-day
temporary permit period. The commissioner shall use the
snowmobile registration system to register vehicles under this
section.

(d) Each deputy registrar of motor vehicles acting under
section 168.33, is also a deputy registrar of all-terrain
vehicles. The commissioner of natural resources in agreement
with the commissioner of public safety may prescribe the
accounting and procedural requirements necessary to assure
efficient handling of registrations and registration fees.
Deputy registrars shall strictly comply with the accounting and
procedural requirements.

(e) In addition to other fees prescribed by law, a filing
fee of $4.50 is charged for each all-terrain vehicle
registration renewal, duplicate or replacement registration
card, and replacement decal and a filing fee of $7 is charged
for each all-terrain vehicle registration and registration
transfer issued by:

(1) a deputy registrar and shall be deposited in the
treasury of the jurisdiction where the deputy is appointed, or
retained if the deputy is not a public official; or

(2) the commissioner and shall be deposited to the state
treasury and credited to the all-terrain vehicle account in the
natural resources fund.

Sec. 40.

Minnesota Statutes 2004, section 84.922, is
amended by adding a subdivision to read:

new text begin Subd. 12. new text end

new text begin Refunds. new text end

new text begin The commissioner may issue a refund
on a registration, not including any issuing fees paid under
subdivision 2, paragraph (e), or section 84.027, subdivision 15,
paragraph (a), clause (3), if the refund request is received
within 12 months of the original registration and:
new text end

new text begin (1) the vehicle was registered incorrectly by the
commissioner or the deputy registrar; or
new text end

new text begin (2) the vehicle was registered twice, once by the dealer
and once by the customer.
new text end

Sec. 41.

Minnesota Statutes 2004, section 84.925,
subdivision 1, is amended to read:

Subdivision 1.

Program established.

(a) The commissioner
shall establish a comprehensive all-terrain vehicle
environmental and safety education and training program,
including the preparation and dissemination of vehicle
information and safety advice to the public, the training of
all-terrain vehicle operators, and the issuance of all-terrain
vehicle safety certificates to vehicle operators over the age of
12 years who successfully complete the all-terrain vehicle
environmental and safety education and training course.

(b) For the purpose of administering the program and to
defray a portion of the expenses of training and certifying
vehicle operators, the commissioner shall collect a fee of $15
from each person who receives the training. The commissioner
shall collect a fee new text begin , to include a $1 issuing fee for licensing
agents, new text end for issuing a duplicate all-terrain vehicle safety
certificate. The commissioner shall establish the fee for a
duplicate all-terrain vehicle safety certificate that neither
significantly overrecovers nor underrecovers costs, including
overhead costs, involved in providing the service. Fee
proceeds new text begin , except for the issuing fee for licensing agents under
this subdivision, new text end shall be deposited in the all-terrain vehicle
account in the natural resources fund. new text begin In addition to the fee
established by the commissioner, instructors may charge each
person the cost of class material and expenses.
new text end

(c) The commissioner shall cooperate with private
organizations and associations, private and public corporations,
and local governmental units in furtherance of the program
established under this section. School districts may cooperate
with the commissioner and volunteer instructors to provide space
for the classroom portion of the training. The commissioner
shall consult with the commissioner of public safety in regard
to training program subject matter and performance testing that
leads to the certification of vehicle operators. By June 30,
2003, the commissioner shall incorporate a riding component in
the safety education and training program.

new text begin EFFECTIVE DATE. new text end

new text begin This section, except for the the last
sentence in paragraph (b), is effective July 6, 2005.
new text end

Sec. 42.

Minnesota Statutes 2004, section 84.925, is
amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Training requirements. new text end

new text begin (a) An individual who
was born after July 1, 1987, and who is 16 years of age or
older, must successfully complete the independent study course
component of all-terrain vehicle safety training before
operating an all-terrain vehicle on public lands.
new text end

new text begin (b) An individual who is convicted of violating a law
related to the operation of an all-terrain vehicle must
successfully complete the independent study course component of
all-terrain vehicle safety training before continuing operation
of an all-terrain vehicle.
new text end

new text begin (c) An individual who is convicted for a second or
subsequent excess speed, trespass, or wetland violation in an
all-terrain vehicle season, or any conviction for careless or
reckless operation of an all-terrain vehicle, must successfully
complete the independent study and the testing and operating
course components of all-terrain vehicle safety training before
continuing operation of an all-terrain vehicle.
new text end

new text begin (d) An individual who receives three or more citations and
convictions for violating a law related to the operation of an
all-terrain vehicle in a two-year period must successfully
complete the independent study and the testing and operating
course components of all-terrain vehicle safety training before
continuing operation of an all-terrain vehicle.
new text end

new text begin (e) An individual must present evidence of compliance with
this subdivision before an all-terrain vehicle registration is
issued or renewed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2006.
new text end

Sec. 43.

Minnesota Statutes 2004, section 84.9256,
subdivision 1, as amended by Laws 2005, chapter 146, section 5,
is amended to read:

Subdivision 1.

Prohibitions on youthful operators.

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

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

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

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

(3) operate an all-terrain vehicle on public lands or
waters new text begin , except as provided in paragraph (e) new text end .

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

(d) new text begin To be issued an new text end all-terrain vehicle safety deleted text begin certificates
issued by the commissioner to persons deleted text end new text begin certificate, a person at
least new text end 12 years old, but less than 16 years old, deleted text begin are not valid
for machines in excess of 90cc engine capacity unless deleted text end new text begin must new text end :

(1) deleted text begin the person deleted text end successfully deleted text begin completed deleted text end new text begin complete new text end the safety
education and training program under section 84.925, subdivision
1, including a riding component; and

(2) deleted text begin the person is deleted text end new text begin be new text end able to properly reach and control the
handle bars and reach the foot pegs while sitting upright on the
seat of the all-terrain vehicle.

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

Sec. 44.

Minnesota Statutes 2004, section 84.9257, is
amended to read:

84.9257 PASSENGERS.

(a) A parent or guardian may operate an all-terrain vehicle
carrying one passenger who is under 16 years of age and who
wears a safety helmet approved by the commissioner of public
safety.

(b) For the purpose of this section, "guardian" means a
legal guardian of a person under age 16, or a person 18 or older
who has been authorized by the parent or legal guardian to
supervise the person under age 16.

new text begin (c) A person 18 years of age or older may operate an
all-terrain vehicle carrying one passenger who is 16 or 17 years
of age and wears a safety helmet approved by the commissioner of
public safety.
new text end

new text begin (d) A person 18 years of age or older may operate an
all-terrain vehicle carrying one passenger who is 18 years of
age or older.
new text end

Sec. 45.

Minnesota Statutes 2004, section 84.926, is
amended to read:

84.926 VEHICLE USE deleted text begin ALLOWED deleted text end ON PUBLIC LANDS deleted text begin BY THE
COMMISSIONER deleted text end new text begin ; EXCEPTIONS new text end .

new text begin Subdivision 1. new text end

new text begin Exception by permit.
new text end

Notwithstanding deleted text begin section deleted text end new text begin sections 84.773, subdivision 1, and
new text end 84.777, on a case by case basis, the commissioner may issue a
permit authorizing a person to operate an off-highway vehicle on
individual public trails under the commissioner's jurisdiction
during specified times and for specified purposes.

new text begin Subd. 2. new text end

new text begin All-terrain vehicles; managed or limited
forests; off trail. new text end

new text begin Notwithstanding section 84.777, but subject
to the commissioner's authority under subdivision 5, on state
forest lands classified as managed or limited, other than the
Richard J. Dorer Memorial Hardwood Forest, a person may use an
all-terrain vehicle off forest trails or forest roads when:
new text end

new text begin (1) hunting big game or transporting or installing hunting
stands during October, November, and December, when in
possession of a valid big game hunting license;
new text end

new text begin (2) retrieving big game in September, when in possession of
a valid big game hunting license;
new text end

new text begin (3) tending traps during an open trapping season for
protected furbearers, when in possession of a valid trapping
license; or
new text end

new text begin (4) trapping minnows, when in possession of a valid minnow
dealer, private fish hatchery, or aquatic farm license.
new text end

new text begin Subd. 3. new text end

new text begin All-terrain vehicles; closed forests;
hunting. new text end

new text begin Notwithstanding section 84.777, the commissioner may
determine whether all-terrain vehicles are allowed on specific
forest roads, on state forest lands classified as closed, for
the purpose of hunting big game during an open big game season.
The determination shall be by written order as published in the
State Register and is exempt from chapter 14. Section 14.386
does not apply.
new text end

new text begin Subd. 4. new text end

new text begin Off-road and all-terrain vehicles; limited or
managed forests; trails. new text end

new text begin Notwithstanding section 84.777, but
subject to the commissioner's authority under subdivision 5, on
state forest lands classified as limited or managed, other than
the Richard J. Dorer Memorial Hardwood Forest, a person may use
vehicles registered under chapter 168 or section 84.798 or
84.922 on forest trails that are not designated for a specific
use when:
new text end

new text begin (1) hunting big game or transporting or installing hunting
stands during October, November, and December, when in
possession of a valid big game hunting license;
new text end

new text begin (2) retrieving big game in September, when in possession of
a valid big game hunting license;
new text end

new text begin (3) tending traps during an open trapping season for
protected furbearers, when in possession of a valid trapping
license; or
new text end

new text begin (4) trapping minnows, when in possession of a valid minnow
dealer, private fish hatchery, or aquatic farm license.
new text end

new text begin Subd. 5. new text end

new text begin Limitations on off-trail and undesignated trail
use. new text end

new text begin The commissioner may designate areas on state forest lands
that are not subject to the exceptions provided in subdivisions
2 and 4. Such designations are not subject to the rulemaking
provisions of chapter 14 and section 14.386 does not apply.
Before designating such areas, the commissioner shall hold a
public meeting in the county where the largest portion of the
forest lands are located to provide information to and receive
comment from the public regarding the proposed designation.
Sixty days before the public meeting, notice of the proposed
designation shall be published in the legal newspapers that
serve the counties in which the lands are located, in a
statewide Department of Natural Resources news release, and in
the State Register.
new text end

Sec. 46.

Minnesota Statutes 2004, section 84.928,
subdivision 1, is amended to read:

Subdivision 1.

Operation on roads and rights-of-way.

(a)
Unless otherwise allowed in sections 84.92 to 84.929, a person
shall not operate an all-terrain vehicle in this state along or
on the roadway, shoulder, or inside bank or slope of a public
road right-of-way of a trunk, county state-aid, or county
highway other than in the ditch or the outside bank or slope of
a trunk, county state-aid, or county highway unless prohibited
under paragraph (b).

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

(c) new text begin The restrictions in paragraphs (a), (b), (g), (h), and
(i) do not apply to the operation of an all-terrain vehicle on
the shoulder, inside bank or slope, ditch, or outside bank or
slope of a trunk, interstate, county state-aid, or county
highway when the all-terrain vehicle is:
new text end

new text begin (1) owned by or operated under contract with a publicly or
privately owned utility or pipeline company; and
new text end

new text begin (2) used for work on utilities or pipelines.
new text end

new text begin (d) new text end The commissioner may limit the use of a right-of-way
for a period of time if the commissioner determines that use of
the right-of-way causes:

(1) degradation of vegetation on adjacent public property;

(2) siltation of waters of the state;

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

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

deleted text begin (d) deleted text end new text begin (e) new text end The commissioner must notify the road authority as
soon as it is known that a closure will be ordered. The notice
must state the reasons and duration of the closure.

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

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

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

deleted text begin (h) deleted text end new text begin (i) new text end A person shall not operate an all-terrain vehicle
at any time within the right-of-way of an interstate highway or
freeway within this state.

Sec. 47.

Minnesota Statutes 2004, section 84.928,
subdivision 2, is amended to read:

Subd. 2.

Operation generally.

A person may not drive or
operate an all-terrain vehicle:

(1) at a rate of speed greater than reasonable or proper
under the surrounding circumstances;

(2) in a careless, reckless, or negligent manner so as to
endanger or to cause injury or damage to the person or property
of another;

(3) without headlight and taillight lighted at all times if
the vehicle is equipped with headlight and taillight;

(4) without a functioning stoplight if so equipped;

(5) in a tree nursery or planting in a manner that damages
or destroys growing stock;

(6) without a brake operational by either hand or foot;

(7) with more deleted text begin persons deleted text end new text begin than one person new text end on the vehicle deleted text begin than
it was designed for deleted text end , except as allowed under section 84.9257;

(8) at a speed exceeding ten miles per hour on the frozen
surface of public waters within 100 feet of a person not on an
all-terrain vehicle or within 100 feet of a fishing shelter; deleted text begin or
deleted text end

(9) new text begin with a snorkel device that has a raised air intake six
inches or more above the vehicle manufacturer's original air
intake, except within the Iron Range Off-Highway Vehicle
Recreation Area as described in section 85.013, subdivision 12a,
or other public off-highway vehicle recreation areas; or
new text end

new text begin (10) new text end in a manner that violates operation rules adopted by
the commissioner.

Sec. 48.

Minnesota Statutes 2004, section 84D.03,
subdivision 4, is amended to read:

Subd. 4.

Commercial fishing new text begin and turtle, frog, and
crayfish harvesting new text end restrictions in infested and noninfested
waters.

(a) All nets, traps, buoys, anchors, stakes, and lines
used for commercial fishing or turtle, frog, or crayfish
harvesting in new text begin an new text end infested deleted text begin waters, deleted text end new text begin water that is new text end designated
because deleted text begin the waters contain deleted text end new text begin it contains new text end invasive fish or
invertebrates, may not be used in deleted text begin noninfested deleted text end new text begin any other new text end waters.
If a commercial licensee operates in both deleted text begin noninfested waters and
deleted text end new text begin an new text end infested deleted text begin waters deleted text end new text begin water new text end designated because deleted text begin the waters contain
deleted text end new text begin it contains new text end invasive fish or invertebrates new text begin and other waters new text end , all
nets, traps, buoys, anchors, stakes, and lines used for
commercial fishing or turtle, frog, or crayfish harvesting in
deleted text begin noninfested deleted text end waters new text begin not designated as infested with invasive fish
or invertebrates new text end must be tagged with tags provided by the
commissioner, as specified in the commercial licensee's license
or permit, and may not be used in infested waters designated
because the waters contain invasive fish or invertebrates.

(b) deleted text begin In infested waters designated solely because the waters
contain Eurasian water milfoil, deleted text end All nets, traps, buoys, anchors,
stakes, and lines used for commercial fishing or turtle, frog,
or crayfish harvesting new text begin in an infested water that is designated
solely because it contains Eurasian water milfoil new text end must be dried
for a minimum of ten days or frozen for a minimum of two days
before they are used in deleted text begin noninfested deleted text end new text begin any other new text end waters new text begin , except as
provided in this paragraph new text end . Commercial deleted text begin operators deleted text end new text begin licensees new text end must
notify the department's regional or area fisheries office or a
conservation officer deleted text begin when deleted text end new text begin before new text end removing nets or equipment from
new text begin an new text end infested deleted text begin waters deleted text end new text begin water designated solely because it contains
Eurasian water milfoil new text end and before resetting those nets or
equipment in deleted text begin noninfested deleted text end new text begin any other new text end waters. deleted text begin All aquatic
macrophytes deleted text end new text begin Upon notification, the commissioner may authorize a
commercial licensee to move nets or equipment to another water
without freezing or drying, if that water is designated as
infested solely because it contains Eurasian water milfoil.
new text end

new text begin (c) A commercial licensee new text end must deleted text begin be removed deleted text end new text begin remove all
aquatic macrophytes new text end from nets and other equipment when the nets
and equipment are removed from deleted text begin infested deleted text end waters new text begin of the state new text end .

new text begin (d) The commissioner shall provide a commercial licensee
with a current listing of designated infested waters at the time
that a license or permit is issued.
new text end

Sec. 49.

Minnesota Statutes 2004, section 85.015,
subdivision 5, is amended to read:

Subd. 5.

Glacial lakes trail, kandiyohi, pope, and
douglas counties.

(a) The trail shall originate at Kandiyohi
County Park on the north shore of Green Lake in Kandiyohi County
and thence extend northwesterly to Sibley State Park, thence
northwesterly to Glacial Lakes State Park in Pope County, thence
northeasterly to Lake Carlos State Park in Douglas County, and
there terminate.

(b) new text begin Trails may be established that extend the Glacial Lakes
Trail system from New London to Cold Spring.
new text end

new text begin (c) new text end The trail shall be developed primarily for riding and
hiking.

Sec. 50.

Minnesota Statutes 2004, section 85.053,
subdivision 1, is amended to read:

Subdivision 1.

Form, issuance, validity.

(a) The
commissioner shall prepare and provide state park permits for
each calendar year that state a motor vehicle may enter and use
state parks, state recreation areas, and state waysides over 50
acres in area. State park permits must be available and placed
on sale by January 1 of the calendar year that the permit is
valid. A separate motorcycle permit may be prepared and
provided by the commissioner.

(b) An annual state park permit deleted text begin must be affixed when
purchased and deleted text end may be used from the time it is deleted text begin affixed deleted text end new text begin purchased
new text end for a 12-month period. State park permits in each category must
be numbered consecutively for each year of issue.

(c) State park permits shall be issued by employees of the
Division of Parks and Recreation as designated by the
commissioner. State park permits also may be consigned to and
issued by agents designated by the commissioner who are not
employees of the Division of Parks and Recreation. All proceeds
from the sale of permits and all unsold permits consigned to
agents shall be returned to the commissioner at such times as
the commissioner may direct, but no later than the end of the
calendar year for which the permits are effective. No part of
the permit fee may be retained by an agent. An additional
charge or fee in an amount to be determined by the commissioner,
but not to exceed four percent of the price of the permit, may
be collected and retained by an agent for handling or selling
the permits.

Sec. 51.

Minnesota Statutes 2004, section 85.053,
subdivision 2, is amended to read:

Subd. 2.

Requirement.

Except as provided in section
85.054, a motor vehicle may not enter a state park, state
recreation area, or state wayside over 50 acres in area, without
a state park permit issued under this section. Except for
vehicles permitted under subdivision 7, paragraph (a), clause
(2), the state park permit must be affixed to the lower right
corner windshield of the motor vehicle and must be completely
affixed by its own adhesive to the windshield new text begin , or the
commissioner may, by written order, provide an alternative means
to display and validate annual permits new text end .

Sec. 52.

Minnesota Statutes 2004, section 85.054,
subdivision 1, is amended to read:

Subdivision 1.

State park open house day.

(a) A state
park permit is not required for a motor vehicle to enter a state
park, state monument, state recreation area, or state wayside,
on one day each calendar year new text begin at each park new text end , which the
commissioner may designate as State Park Open House Day. The
commissioner may designate two consecutive days as State Park
Open House Day, if the open house is held in conjunction with a
special pageant described in section 85.052, subdivision 2.

(b) The commissioner shall announce the date of new text begin each new text end state
park open house day at least 30 days in advance of the date it
occurs.

(c) The state park open house day is to acquaint the
public with state parks, recreation areas, and waysides.

Sec. 53.

Minnesota Statutes 2004, section 85.054, is
amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Big bog state recreation area. new text end

new text begin A state park
permit is not required and a fee may not be charged for motor
vehicle entry or parking at the parking area located north of
Tamarac River in the southern unit of Big Bog State Recreation
Area, Beltrami County.
new text end

Sec. 54.

Minnesota Statutes 2004, section 85.055, is
amended by adding a subdivision to read:

new text begin Subd. 1b. new text end

new text begin Discounts. new text end

new text begin Except as otherwise specified in
law, and notwithstanding section 16A.1285, subdivision 2, the
commissioner may by written order authorize waiver or reduction
of state park entrance fees.
new text end

Sec. 55.

Minnesota Statutes 2004, section 85.055,
subdivision 2, is amended to read:

Subd. 2.

Fee deposit and appropriation.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 6, 2005.
new text end

Sec. 56.

Minnesota Statutes 2004, section 85.42, is
amended to read:

85.42 USER FEE; VALIDITY.

(a) The fee for an annual cross-country ski pass is deleted text begin $9 deleted text end new text begin $14
new text end for an individual age 16 and over. The fee for a three-year
pass is deleted text begin $24 deleted text end new text begin $39 new text end for an individual age 16 and over. This fee
shall be collected at the time the pass is purchased.
Three-year passes are valid for three years beginning the
previous July 1. Annual passes are valid for one year beginning
the previous July 1.

(b) The cost for a daily cross-country skier pass is deleted text begin $2 deleted text end new text begin $4
new text end for an individual age 16 and over. This fee shall be collected
at the time the pass is purchased. The daily pass is valid only
for the date designated on the pass form.

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

Sec. 57.

Minnesota Statutes 2004, section 85.43, is
amended to read:

85.43 DISPOSITION OF RECEIPTS; PURPOSE.

deleted text begin (a) deleted text end Fees from cross-country ski passes shall be deposited
in the state treasury and credited to a cross-country ski
account in the natural resources fund and, except deleted text begin as provided in
paragraph (b) deleted text end new text begin for the electronic licensing system commission
established by the commissioner under section 84.027,
subdivision 15 new text end , are appropriated to the commissioner of natural
resources for deleted text begin :
deleted text end

deleted text begin (1) deleted text end grants-in-aid for cross-country ski trails sponsored by
local units of government and special park districts as provided
in section 85.44 deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (2) maintenance, winter grooming, and associated
administrative costs for cross-country ski trails under the
jurisdiction of the commissioner.
deleted text end

deleted text begin (b) The commissioner shall retain for the operation of the
electronic licensing system a commission of 4.7 percent of all
cross-country ski pass fees collected.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 6, 2005.
new text end

Sec. 58.

Minnesota Statutes 2004, section 86B.415,
subdivision 1, is amended to read:

Subdivision 1.

Watercraft 19 feet or less.

The fee for a
watercraft license for watercraft 19 feet or less in length
is deleted text begin $18 deleted text end new text begin $27 new text end except:

(1) for watercraft, other than personal watercraft, 19 feet
in length or less that is offered for rent or lease, the fee is
deleted text begin $6 deleted text end new text begin $9 new text end ;

(2) for a canoe, kayak, sailboat, sailboard, paddle boat,
or rowing shell 19 feet in length or less, the fee is deleted text begin $7 deleted text end new text begin $10.50 new text end ;

(3) for a watercraft 19 feet in length or less used by a
nonprofit corporation for teaching boat and water safety, the
fee is as provided in subdivision 4;

(4) for a watercraft owned by a dealer under a dealer's
license, the fee is as provided in subdivision 5;

(5) for a personal watercraft, the fee is deleted text begin $25 deleted text end new text begin $37.50 new text end ; and

(6) for a watercraft less than 17 feet in length, other
than a watercraft listed in clauses (1) to (5), the fee
is deleted text begin $12 deleted text end new text begin $18 new text end .

Sec. 59.

Minnesota Statutes 2004, section 86B.415,
subdivision 2, is amended to read:

Subd. 2.

Watercraft over 19 feet.

Except as provided in
subdivisions 3, 4, and 5, the watercraft license fee:

(1) for a watercraft more than 19 feet but less than 26
feet in length is deleted text begin $30 deleted text end new text begin $45 new text end ;

(2) for a watercraft 26 feet but less than 40 feet in
length is deleted text begin $45 deleted text end new text begin $67.50 new text end ; and

(3) for a watercraft 40 feet in length or longer is deleted text begin $60 deleted text end new text begin $90 new text end .

Sec. 60.

Minnesota Statutes 2004, section 86B.415,
subdivision 3, is amended to read:

Subd. 3.

Watercraft over 19 feet for hire.

The license
fee for a watercraft more than 19 feet in length for hire with
an operator is deleted text begin $50 deleted text end new text begin $75 new text end each.

Sec. 61.

Minnesota Statutes 2004, section 86B.415,
subdivision 4, is amended to read:

Subd. 4.

Watercraft used by nonprofit corporation for
teaching.

The watercraft license fee for a watercraft used by a
nonprofit organization for teaching boat and water safety is
deleted text begin $3 deleted text end new text begin $4.50 new text end each.

Sec. 62.

Minnesota Statutes 2004, section 86B.415,
subdivision 5, is amended to read:

Subd. 5.

Dealer's license.

There is no separate fee for
watercraft owned by a dealer under a dealer's license. The fee
for a dealer's license is deleted text begin $45 deleted text end new text begin $67.50 new text end .

Sec. 63.

Minnesota Statutes 2004, section 86B.415,
subdivision 6, is amended to read:

Subd. 6.

Transfer or duplicate license.

The fee to
transfer a watercraft license or be issued a duplicate license
is deleted text begin $3 deleted text end new text begin $4.50 new text end .

Sec. 64.

Minnesota Statutes 2004, section 86B.415, is
amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Refunds. new text end

new text begin The commissioner may issue a refund
on a license or title, not including any issuing fees paid under
subdivision 8 or section 84.027, subdivision 15, paragraph (a),
clause (3), or 86B.870, subdivision 1, paragraph (b), if the
refund request is received within 12 months of the original
license or title and:
new text end

new text begin (1) the watercraft was licensed or titled incorrectly by
the commissioner or the deputy registrar;
new text end

new text begin (2) the customer was incorrectly charged a title fee; or
new text end

new text begin (3) the watercraft was licensed or titled twice, once by
the dealer and once by the customer.
new text end

Sec. 65.

new text begin [86B.706] WATER RECREATION ACCOUNT; RECEIPTS AND
PURPOSE.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin The water recreation account is
created in the state treasury in the natural resources fund.
new text end

new text begin Subd. 2. new text end

new text begin Money deposited in account. new text end

new text begin The following shall
be deposited in the state treasury and credited to the water
recreation account:
new text end

new text begin (1) fees and surcharges from titling and licensing of
watercraft under this chapter;
new text end

new text begin (2) fines, installment payments, and forfeited bail
according to section 86B.705, subdivision 2;
new text end

new text begin (3) civil penalties according to section 84D.13;
new text end

new text begin (4) mooring fees and receipts from the sale of marine gas
at state-operated or state-assisted small craft harbors and
mooring facilities according to section 86A.21;
new text end

new text begin (5) the unrefunded gasoline tax attributable to watercraft
use under section 296A.18; and
new text end

new text begin (6) fees for permits issued to control or harvest aquatic
plants other than wild rice under section 103G.615, subdivision
2.
new text end

new text begin Subd. 3. new text end

new text begin Purposes. new text end

new text begin The money in the account may be
expended only as appropriated by law for the following purposes:
new text end

new text begin (1) as directed under section 296A.18, subdivision 2, for
acquisition, development, maintenance, and rehabilitation of
public water access and boating facilities on public waters;
lake and river improvements; and boat and water safety;
new text end

new text begin (2) from the fees collected at state-operated or
state-assisted small craft harbors and mooring facilities from
daily and seasonal moorings and the sale of marine gas, for
maintenance, operation, replacement, and expansion of these
facilities and for the debt service on state bonds sold to
finance these facilities;
new text end

new text begin (3) for administration and enforcement of this chapter as
it pertains to titling and licensing of watercraft and use and
safe operation of watercraft; grants for county-sponsored and
administered boat and water safety programs; and state boat and
water safety efforts;
new text end

new text begin (4) for management of aquatic invasive species and the
implementation of chapter 84D as it pertains to aquatic invasive
species, including control, public awareness, law enforcement,
assessment and monitoring, management planning, and research;
and
new text end

new text begin (5) for management of aquatic plants and the implementation
of section 103G.615 as it pertains to aquatic plants, including
plant removal permitting, control, public awareness, law
enforcement, assessment and monitoring, management planning, and
research.
new text end

Sec. 66.

Minnesota Statutes 2004, section 88.17,
subdivision 1, is amended to read:

Subdivision 1.

Permit required.

new text begin (a) new text end A permit to start a
fire to burn vegetative materials and other materials allowed by
Minnesota Statutes or official state rules and regulations may
be given by the commissioner or the commissioner's agent. This
permission shall be in the form of new text begin :
new text end

new text begin (1) new text end a written permit deleted text begin signed deleted text end new text begin issued new text end by a forest officer,
fire warden, deleted text begin authorized Minnesota pollution control agent, deleted text end or
other person authorized by the deleted text begin forest officer, or town fire
warden, and deleted text end new text begin commissioner; or
new text end

new text begin (2) an electronic permit issued by the commissioner, an
agent authorized by the commissioner, or an Internet site
authorized by the commissioner.
new text end

new text begin (b) Burning permits new text end shall set the time and conditions by
which the fire may be started and burned. The permit shall also
specifically list the materials that may be burned. The
permittee must have the permit on their person and shall produce
the permit for inspection when requested to do so by a forest
officer, deleted text begin town fire warden, deleted text end conservation officer, or other peace
officer. The permittee shall remain with the fire at all times
and before leaving the site shall completely extinguish the
fire. A person shall not start or cause a fire to be started on
any land that is not owned or under their legal control without
the written permission of the owner, lessee, or an agent of the
owner or lessee of the land. Violating or exceeding the permit
conditions shall constitute a misdemeanor and shall be cause for
the permit to be revoked.

Sec. 67.

Minnesota Statutes 2004, section 88.17, is
amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Account created. new text end

new text begin There is created in the state
treasury a burning permit account within the natural resources
fund where all fees collected under this section shall be
deposited.
new text end

Sec. 68.

Minnesota Statutes 2004, section 88.17, is
amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Permit fees. new text end

new text begin (a) The annual fees for an
electronic burning permit are:
new text end

new text begin (1) $5 for a noncommercial burning permit; and
new text end

new text begin (2) for commercial enterprises that obtain multiple
permits, $5 per permit for each burning site, up to a maximum of
$50 per individual business enterprise per year.
new text end

new text begin (b) Except for the issuing fee under paragraph (c), and for
the electronic licensing system commission established by the
commissioner under section 84.027, subdivision 15, money
received from permits issued under this section shall be
deposited in the state treasury and credited to the burning
permit account and is annually appropriated to the commissioner
of natural resources for the costs of operating the burning
permit system.
new text end

new text begin (c) Of the fee amount collected under paragraph (a), $1
shall be retained by the permit agent as a commission for
issuing electronic permits.
new text end

new text begin (d) Fire wardens who issue written permits may charge a fee
of up to $1 for each permit issued, to be retained by the fire
warden as a commission for issuing the permit. This paragraph
does not limit a local government unit from charging an
administrative fee for issuing open burning permits within its
jurisdiction.
new text end

Sec. 69.

Minnesota Statutes 2004, section 88.6435,
subdivision 4, is amended to read:

Subd. 4.

new text begin forest bough account; new text end disposition of deleted text begin permit deleted text end fees
deleted text begin and penalties deleted text end .

new text begin (a) The forest bough account is established in
the state treasury within the natural resources fund.
new text end

new text begin (b) new text end Fees for permits issued under this section shall be
deposited in the state treasury and credited to the deleted text begin special
revenue fund deleted text end new text begin forest bough account new text end and new text begin , except for the electronic
licensing system commission established by the commissioner
under section 84.027, subdivision 15, new text end are annually appropriated
to the commissioner of natural resources for costs associated
with balsam bough educational programs for harvesters and buyers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 6, 2005.
new text end

Sec. 70.

Minnesota Statutes 2004, section 89.039,
subdivision 1, is amended to read:

Subdivision 1.

Account established; sources.

The forest
management investment account is created in the natural
resources fund in the state treasury and money in the account
may be spent only for the purposes provided in subdivision 2.
The following revenue shall be deposited in the forest
management investment account:

(1) timber sales receipts transferred from the consolidated
conservation areas account as provided in section 84A.51,
subdivision 2;

(2) timber sales receipts from forest lands as provided in
section 89.035; deleted text begin and
deleted text end

(3) new text begin money transferred from the forest suspense account
according to section 16A.125, subdivision 5; and
new text end

new text begin (4) new text end interest accruing from investment of the account.

Sec. 71.

Minnesota Statutes 2004, section 89.19,
subdivision 2, is amended to read:

Subd. 2.

Rulemaking exemption.

Designations of forest
trails new text begin and changes to the designations new text end by the commissioner shall
be by written order published in the State Register.
Designations new text begin and changes to designations new text end are not subject to the
rulemaking provisions of chapter 14 and section 14.386 does not
apply. Before designating new text begin or changing a designation of new text end forest
trails, the commissioner shall hold a public meeting in the
county where the largest portion of the forest lands are located
to provide information to and receive comment from the public
regarding the proposed trail designation new text begin or change in
designation new text end . Sixty days before the public meeting, notice of
the proposed forest trail new text begin designation or change in designation
new text end shall be published in the legal newspapers that serve the
counties in which the lands are located, in a statewide
Department of Natural Resources news release, and in the State
Register.

Sec. 72.

Minnesota Statutes 2004, section 89.36,
subdivision 2, is amended to read:

Subd. 2.

Purchase of stock.

The commissioner of natural
resources may purchase tree planting stock for the purposes
herein authorized under the provisions of sections 89.35 to
89.39, or any other applicable law now or hereafter in
force. new text begin The commissioner must give preference for Minnesota
grown planting stock.
new text end

Sec. 73.

Minnesota Statutes 2004, section 89.37,
subdivision 4, is amended to read:

Subd. 4.

Proceeds of sale.

All money received in payment
for tree planting stock supplied under this section shall be
deposited in the state treasury and credited to a forest nursery
account and are available to the commissioner of natural
resources for the purposes of sections 89.35 to 89.37 new text begin , including
up to $250,000 per year for forestry education and technical
assistance new text end .

Sec. 74.

Minnesota Statutes 2004, section 90.195, is
amended to read:

90.195 SPECIAL USE PERMIT.

The commissioner may issue a permit to salvage or cut not
to exceed 12 cords of fuelwood per year for personal use from
either or both of the following sources: (1) dead, down, and
diseased trees; (2) other trees that are of negative value under
good forest management practices. The permits may be issued for
a period not to exceed one year. The commissioner shall charge
a fee deleted text begin , not less than $5, in an amount up to the stumpage deleted text end new text begin for the
permit that shall cover the commissioner's cost of issuing the
permit and shall not exceed the new text end current market value of fuelwood
of similar species, grade, and volume that is being sold in the
area where the salvage or cutting is authorized under the permit.

Sec. 75.

Minnesota Statutes 2004, section 92.03,
subdivision 4, is amended to read:

Subd. 4.

Internal improvement lands.

new text begin When new text end lands donated
to the state under the eighth section of an act of Congress
entitled "An act to appropriate the proceeds of the sales of the
public lands, and to grant preemption rights," approved
September 4, 1841, deleted text begin must be deleted text end new text begin are new text end sold deleted text begin and deleted text end new text begin , new text end the money derived from
its sale new text begin must be new text end invested, as provided by the Minnesota
Constitution, article XI, section 8.

Sec. 76.

new text begin [92.685] LAND MANAGEMENT ACCOUNT.
new text end

new text begin The land management account is created in the natural
resources fund. Money credited to the account is appropriated
annually to the commissioner of natural resources for the Lands
and Minerals Division to administer the road easement program
under section 84.631.
new text end

Sec. 77.

new text begin [93.2236] MINERALS MANAGEMENT ACCOUNT.
new text end

new text begin (a) The minerals management account is created as an
account in the natural resources fund. Interest earned on money
in the account accrues to the account. Money in the account may
be spent or distributed only as provided in paragraphs (b) and
(c).
new text end

new text begin (b) If the balance in the minerals management account
exceeds $3,000,000 on June 30, the amount exceeding $3,000,000
must be distributed to the permanent school fund and the
permanent university fund. The amount distributed to each fund
must be in the same proportion as the total mineral lease
revenue received in the previous biennium from school trust
lands and university lands.
new text end

new text begin (c) Subject to appropriation by the legislature, money in
the minerals management account may be spent by the commissioner
of natural resources for mineral resource management and
projects to enhance future mineral income and promote new
mineral resource opportunities.
new text end

Sec. 78.

Minnesota Statutes 2004, section 94.342,
subdivision 1, is amended to read:

Subdivision 1.

Class a.

All land owned by the state and
controlled or administered by the commissioner or by any
division deleted text begin or agency deleted text end of the Department of Natural Resources shall
be known as Class A land for the purposes of sections 94.341 to
94.347. Class A land shall include school, swamp, internal
improvement, and other land granted to the state by acts of
Congress, state forest land, tax-forfeited land held by the
state free from any trust in favor of taxing districts, and
other land acquired by the state in any manner and controlled or
administered as aforesaid; but this enumeration shall not be
deemed exclusive.

Sec. 79.

Minnesota Statutes 2004, section 94.342,
subdivision 3, is amended to read:

Subd. 3.

deleted text begin class c deleted text end new text begin additional restrictions on riparian
land new text end .

Land bordering on or adjacent to any meandered or other
public waters and withdrawn from sale by law is deleted text begin Class C deleted text end new text begin riparian
new text end land. deleted text begin Class C deleted text end new text begin Riparian new text end land may not be given in exchange unless
expressly authorized by the legislature or unless through the
same exchange the state acquires land on the same or other
public waters in the same general vicinity affording at least
equal opportunity for access to the waters and other riparian
use by the public; provided, that any exchange with the United
States or any agency thereof may be made free from this
limitation upon condition that the state land given in exchange
bordering on public waters shall be subject to reservations by
the state for public travel along the shores as provided by
section 92.45, unless waived as provided in this subdivision,
and that there shall be reserved by the state such additional
rights of public use upon suitable portions of such state land
as the commissioner of natural resources, with the approval of
the Land Exchange Board, may deem necessary or desirable for
camping, hunting, fishing, access to the water, and other public
uses. In regard to Class B or deleted text begin Class C deleted text end new text begin riparian new text end land that is
contained within that portion of the Superior National Forest
that is designated as the Boundary Waters Canoe Area Wilderness,
the condition that state land given in exchange bordering on
public waters must be subject to the public travel reservations
provided in section 92.45, may be waived by the Land Exchange
Board upon the recommendation of the commissioner of natural
resources and, if the land is Class B land, the additional
recommendation of the county board in which the land is located.

Sec. 80.

Minnesota Statutes 2004, section 94.342,
subdivision 4, is amended to read:

Subd. 4.

new text begin additional restrictions on new text end state park land.

Land specifically designated by law as a state park may not be
given in exchange unless the land is school trust land that is
exchanged for Class A deleted text begin or Class C deleted text end land located outside a state
park.

Sec. 81.

Minnesota Statutes 2004, section 94.342,
subdivision 5, is amended to read:

Subd. 5.

new text begin additional restrictions on new text end school trust land.

School trust land may be exchanged with other deleted text begin state deleted text end new text begin Class A new text end land
only if the Permanent School Fund Advisory Committee is
appointed as temporary trustee of the school trust land for
purposes of the exchange. The committee shall provide
independent legal counsel to review the exchanges.

Sec. 82.

Minnesota Statutes 2004, section 94.343,
subdivision 1, is amended to read:

Subdivision 1.

General exchange provisions.

deleted text begin Except as
otherwise herein provided, deleted text end new text begin (a) new text end Any Class A land may, with the
unanimous approval of the board, be exchanged for any publicly
held or privately owned land in the manner and subject to the
conditions herein prescribed. new text begin Class A land may be exchanged
only if it meets the requirements of subdivision 3 or 5.
new text end

new text begin (b) new text end The commissioner, with the approval of the board, shall
formulate general programs of exchange of Class A land designed
to serve the best interests of the state in the acquisition,
development, and use of lands for purposes within the province
of the Department of Natural Resources.

Sec. 83.

Minnesota Statutes 2004, section 94.343, is
amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Valuation of land. new text end

new text begin The commissioner shall
cause the state land and the land proposed to be exchanged
therefor to be examined and value determined as provided in
section 84.0272; provided, that in exchanges with the United
States or any agency thereof the examination and value
determination may be made in the manner as the Land Exchange
Board may direct. The determined values shall not be
conclusive, but shall be taken into consideration by the
commissioner and the board, together with such other matters as
they deem material, in determining the values for the purposes
of exchange.
new text end

Sec. 84.

Minnesota Statutes 2004, section 94.343,
subdivision 3, is amended to read:

Subd. 3.

new text begin exchanging land of new text end substantially equal value
deleted text begin required deleted text end new text begin or lower value new text end .

(a) Except as otherwise deleted text begin herein
deleted text end provided, Class A land shall be exchanged only for land of at
least substantially equal value to the state, as determined by
the commissioner, with the approval of the board. deleted text begin For the
purposes of such determination, the commissioner shall cause the
state land and the land proposed to be exchanged therefor to be
examined and appraised by qualified state appraisers as provided
in section 84.0272; provided, that in exchanges with the United
States or any agency thereof the examination and appraisal may
be made in such manner as the Land Exchange Board may direct.
The appraisers shall determine the fair market value of the
lands involved, disregarding any minimum value fixed for state
land by the state Constitution or by law, and shall make a
report thereof, together with such other pertinent information
respecting the use and value of the lands to the state as they
deem pertinent or as the commissioner or the board may require.
Such reports shall be filed and preserved in the same manner as
other reports of appraisal of state lands. The appraised values
shall not be conclusive, but shall be taken into consideration
by the commissioner and the board, together with such other
matters as they deem material, in determining the values for the
purposes of exchange.
deleted text end

(b) For the purposes of this subdivision, "substantially
equal value" means:

(1) where the lands being exchanged are both over 100
acres, their values do not differ by more than ten percent; and

(2) in other cases, the values of the exchanged lands do
not differ by more than 20 percent.

new text begin (c) Other than school trust land, Class A land may be
exchanged for land of lesser value if the other party to the
exchange pays to the state the amount of the difference in value.
Money received by the commissioner in such cases shall be
credited to the same fund as in the case of sale of the land, if
such a fund exists, otherwise to the special fund, if any, from
which the cost of the land was paid, otherwise to the general
fund.
new text end

Sec. 85.

Minnesota Statutes 2004, section 94.343,
subdivision 7, is amended to read:

Subd. 7.

Public hearing.

Before giving final approval to
any exchange of Class A land, the deleted text begin board deleted text end new text begin commissioner new text end shall hold
a public hearing thereon at the capital city or at some place
which it may designate in the general area where the lands
involved are situated deleted text begin ; provided, that the board may direct such
hearing to be held in its behalf by any of its members or by the
commissioner or by a referee appointed by the board deleted text end . The
commissioner shall furnish to the auditor of each county
affected a notice of the hearing signed by the deleted text begin state auditor as
secretary of the board deleted text end new text begin commissioner new text end , together with a list of all
the lands proposed to be exchanged and situated in the county,
and the county auditor shall post the same in the auditor's
office at least two weeks before the hearing. The deleted text begin county
auditor deleted text end new text begin commissioner new text end shall deleted text begin also deleted text end cause a copy of the notice,
referring to the list of lands posted, to be published at least
two weeks before the hearing in a legal newspaper published in
the county. The cost of publication of the notice shall be paid
by the deleted text begin state out of any moneys appropriated for the expenses of
the board deleted text end new text begin commissioner new text end .

Sec. 86.

Minnesota Statutes 2004, section 94.343,
subdivision 8, is amended to read:

Subd. 8.

Proposals for exchange.

The commissioner, with
the approval of the board, may submit a proposal for exchange of
Class A land to any land owner concerned. Any land owner may
submit to the commissioner and the board a proposal for exchange
in such form as the commissioner deleted text begin , with the approval of the
board, deleted text end may prescribe.

Sec. 87.

Minnesota Statutes 2004, section 94.343, is
amended by adding a subdivision to read:

new text begin Subd. 8a. new text end

new text begin Fees. new text end

new text begin (a) When a private landowner or
governmental unit, except the state, presents to the
commissioner an offer to exchange privately or publicly held
land for Class A land, the private landowner or governmental
unit shall pay to the commissioner a determination of value fee
and survey fee of not less than one-half of the cost of the
determination of value and survey fees as determined by the
commissioner.
new text end

new text begin (b) Except as provided in paragraph (c), any payment made
under paragraph (a) shall be credited to the account from which
the expenses are paid and is appropriated for expenditure in the
same manner as other money in the account.
new text end

new text begin (c) The fees shall be refunded if the land exchange offer
is withdrawn by a private landowner or governmental unit before
the money is obligated to be spent.
new text end

Sec. 88.

Minnesota Statutes 2004, section 94.343,
subdivision 10, is amended to read:

Subd. 10.

Conveyance.

Conveyance of Class A land given
in exchange shall be made by deed executed by the commissioner
in the name of the state deleted text begin , with a certificate of unanimous
approval by the board appended deleted text end . All such deeds received by the
state shall be recorded or registered in the county in which the
lands lie deleted text begin , and all recorded deeds and certificates of registered
title shall be filed in the office having custody of the state
public land records in the Department of Natural Resources deleted text end .

Sec. 89.

Minnesota Statutes 2004, section 94.344,
subdivision 1, is amended to read:

Subdivision 1.

General exchange provisions.

deleted text begin Except as
otherwise provided, deleted text end Class B land, by resolution of the county
board of the county where the land is located and with the
unanimous approval of the Land Exchange Board, may be exchanged
for any publicly held or privately owned land in the same
county. new text begin Class B land may be exchanged only if it meets the
requirements of subdivision 3 or 5.
new text end

Sec. 90.

Minnesota Statutes 2004, section 94.344, is
amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Valuation of lands. new text end

new text begin For an exchange involving
Class B land for Class A land, the value of the lands shall be
determined by the commissioner, with approval of the Land
Exchange Board. For purposes of the determination, the
commissioner shall determine the value of the state and
tax-forfeited land proposed to be exchanged in the same manner
as Class A land. For all other purposes, the county board shall
appraise the state land and the land in the proposed exchange in
the same manner as tax-forfeited land to be offered for sale.
The determined values shall not be conclusive, but shall be
taken into consideration, together with such other matters as
may be deemed material, in determining the values for the
purposes of exchange.
new text end

Sec. 91.

Minnesota Statutes 2004, section 94.344,
subdivision 3, is amended to read:

Subd. 3.

new text begin exchanging land of new text end substantially equal value
deleted text begin required deleted text end new text begin or lower value new text end .

(a) Except as otherwise provided,
Class B land may be exchanged only for land of substantially
equal value deleted text begin or greater value deleted text end to the state, as determined by the
county board, with the approval of the commissioner and the Land
Exchange Board. deleted text begin For an exchange involving Class B land for
Class A or Class C land, the value of the lands shall be
determined by the commissioner, with approval of the Land
Exchange Board. For purposes of the determination, the
commissioner shall appraise the state and tax-forfeited land
proposed to be exchanged in the same manner as Class A land.
For all other purposes, the county board shall appraise the
state land and the land in the proposed exchange in the same
manner as tax-forfeited land to be offered for sale. The
appraised values shall not be conclusive, but shall be taken
into consideration, together with such other matters as may be
deemed material, in determining the values for the purposes of
exchange.
deleted text end

(b) For the purposes of this subdivision, "substantially
equal value" means:

(1) where the lands being exchanged are both over 100
acres, their values do not differ by more than ten percent; and

(2) in other cases, the values of the exchanged lands do
not differ by more than 20 percent.

new text begin (c) Class B land may be exchanged for land of lesser value
if the other party to the exchange pays to the state the amount
of the difference in value. Money received by the county
treasurer shall be disposed of in like manner as the proceeds of
a sale of tax-forfeited land.
new text end

Sec. 92.

Minnesota Statutes 2004, section 94.344,
subdivision 5, is amended to read:

Subd. 5.

deleted text begin obtaining deleted text end new text begin exchanging new text end land of greater value.

new text begin (a)
new text end Class B land may be exchanged for land of greater value deleted text begin only in
case deleted text end new text begin if new text end the other party to the exchange deleted text begin shall waive deleted text end new text begin waives
new text end payment for the difference.

new text begin (b) Except for Class A school trust land, Class B land may
be exchanged for Class A land of greater value if the county
pays to the state the difference in value.
new text end

new text begin (c) Class B land may be exchanged for United States-owned
land of greater value if the county agrees to pay the difference
in value.
new text end

Sec. 93.

Minnesota Statutes 2004, section 94.344,
subdivision 8, is amended to read:

Subd. 8.

Proposals for exchange.

By direction of the
county board new text begin , new text end the county auditor may submit a proposal for
exchange of Class B land to any land owner concerned. Any land
owner may file with the county auditor a proposal for exchange
for consideration by the county board. deleted text begin Forms for such proposals
shall be prescribed by the commissioner.
deleted text end

Sec. 94.

Minnesota Statutes 2004, section 94.344,
subdivision 10, is amended to read:

Subd. 10.

Approval; conveyance.

After approval by the
county board, every proposal for the exchange of Class B land
shall be transmitted to the commissioner in such form and with
such information as the commissioner may prescribe for
consideration by the commissioner and by the board. The county
attorney's opinion on the title, with the abstract and other
evidence of title, if any, shall accompany the proposal. If the
proposal deleted text begin be deleted text end new text begin is new text end approved by the commissioner and the board and
the title deleted text begin be deleted text end new text begin is new text end approved by the attorney general, the same shall
be certified to the commissioner of revenue, who shall execute a
deed in the name of the state conveying the land given in
exchange deleted text begin , with a certificate of unanimous approval by the board
appended, deleted text end and transmit the deed to the county auditor to be
delivered upon receipt of a deed conveying to the state the land
received in exchange, approved by the county attorney; provided,
that if any amount is due the state under the terms of the
exchange, the deed from the state shall not be executed or
delivered until such amount is paid in full and a certificate
thereof by the county auditor is filed with the commissioner of
revenue. The county auditor shall cause all deeds received by
the state in such exchanges to be recorded or registered deleted text begin , and
thereafter shall file the deeds or the certificates of
registered title in the auditor's office deleted text end . If the land received
by the county in the exchange is deleted text begin either deleted text end Class A deleted text begin or Class C deleted text end land,
the commissioner of revenue shall deliver the deed for the Class
B land to the commissioner of natural resources and following
the recording of this deed, the commissioner of natural
resources shall deliver to the county auditor a deed conveying
the Class A deleted text begin or Class C deleted text end land to the county auditor to be recorded
or registered deleted text begin , and afterwards file the deeds or the certificate
of registered title in the auditor's office deleted text end .

Sec. 95.

Minnesota Statutes 2004, section 97A.055,
subdivision 4b, is amended to read:

Subd. 4b.

Citizen oversight subcommittees.

(a) The
commissioner shall appoint subcommittees of affected persons to
review the reports prepared under subdivision 4; review the
proposed work plans and budgets for the coming year; propose
changes in policies, activities, and revenue enhancements or
reductions; review other relevant information; and make
recommendations to the legislature and the commissioner for
improvements in the management and use of money in the game and
fish fund.

(b) The commissioner shall appoint the following
subcommittees, each comprised of at least three affected persons:

(1) a Fisheries Operations Subcommittee to review fisheries
funding, excluding activities related to trout and salmon stamp
funding;

(2) a Wildlife Operations Subcommittee to review wildlife
funding, excluding activities related to migratory waterfowl,
pheasant, and turkey stamp funding and excluding review of the
amounts available under section 97A.075, subdivision 1,
paragraphs (b) and (c);

(3) a Big Game Subcommittee to review the report required
in subdivision 4, paragraph (a), clause (2);

(4) an Ecological Services Operations Subcommittee to
review ecological services funding;

(5) a subcommittee to review game and fish fund funding of
enforcement, support services, and Department of Natural
Resources administration;

(6) a subcommittee to review the trout and salmon stamp
report and address funding issues related to trout and salmon;

(7) a subcommittee to review the report on the migratory
waterfowl stamp and address funding issues related to migratory
waterfowl;

(8) a subcommittee to review the report on the pheasant
stamp and address funding issues related to pheasants; and

(9) a subcommittee to review the report on the turkey stamp
and address funding issues related to wild turkeys.

(c) The chairs of each of the subcommittees shall form a
Budgetary Oversight Committee to coordinate the integration of
the subcommittee reports into an annual report to the
legislature; recommend changes on a broad level in policies,
activities, and revenue enhancements or reductions; provide a
forum to address issues that transcend the subcommittees; and
submit a report for any subcommittee that fails to submit its
report in a timely manner.

(d) The Budgetary Oversight Committee shall develop
recommendations for a biennial budget plan and report for
expenditures on game and fish activities. By August 15 of each
even-numbered year, the committee shall submit the budget plan
recommendations to the commissioner new text begin and to the senate and house
committees with jurisdiction over natural resources finance new text end .

(e) Each subcommittee shall choose its own chair, except
that the chair of the Budgetary Oversight Committee shall be
appointed by the commissioner and may not be the chair of any of
the subcommittees.

(f) The Budgetary Oversight Committee must make
recommendations to the commissioner new text begin and to the senate and house
committees with jurisdiction over natural resources finance new text end for
outcome goals from expenditures.

(g) Notwithstanding section 15.059, subdivision 5, or other
law to the contrary, the Budgetary Oversight Committee and
subcommittees do not expire until June 30, deleted text begin 2005 deleted text end new text begin 2010 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 96.

Minnesota Statutes 2004, section 97A.061,
subdivision 1, is amended to read:

Subdivision 1.

Applicability; amount.

(a) The
commissioner shall annually make a payment to each county having
public hunting areas and game refuges. Money to make the
payments is annually appropriated for that purpose from the
general fund. new text begin Except as provided in paragraph (b), new text end this section
does not apply to state trust fund land and other state land not
purchased for game refuge or public hunting purposes. new text begin Except as
provided in paragraph (b), new text end the payment shall be the greatest of:

(1) 35 percent of the gross receipts from all special use
permits and leases of land acquired for public hunting and game
refuges;

(2) 50 cents per acre on land purchased actually used for
public hunting or game refuges; or

(3) three-fourths of one percent of the appraised value of
purchased land actually used for public hunting and game refuges.

(b) new text begin The payment shall be 50 percent of the dollar amount
adjusted for inflation as determined under section 477A.12,
subdivision 1, paragraph (a), clause (1), multiplied by the
number of acres of land in the county that are owned by another
state agency for military purposes and designated as a game
refuge under section 97A.085.
new text end

new text begin (c) new text end The payment must be reduced by the amount paid under
subdivision 3 for croplands managed for wild geese.

deleted text begin (c) deleted text end new text begin (d) new text end The appraised value is the purchase price for five
years after acquisition. The appraised value shall be
determined by the county assessor every five years after
acquisition.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids paid
in calendar year 2007 and thereafter.
new text end

Sec. 97.

Minnesota Statutes 2004, section 97A.075,
subdivision 3, is amended to read:

Subd. 3.

Trout and salmon stamp.

(a) Ninety percent of
the revenue from trout and salmon stamps must be credited to the
trout and salmon management account. Money in the account may
be used only for:

(1) the development, restoration, maintenance, new text begin improvement,
protection, new text end and preservation of new text begin habitat for trout and salmon in
new text end trout streams and lakes new text begin , including, but not limited to,
evaluating habitat; stabilizing eroding stream banks; adding
fish cover; modifying stream channels; managing vegetation to
protect, shade, or reduce runoff on stream banks; and purchasing
equipment to accomplish these tasks new text end ;

(2) rearing deleted text begin of deleted text end trout and salmon deleted text begin and deleted text end new text begin , including utility and
service costs associated with coldwater hatchery buildings and
systems; new text end stocking deleted text begin of deleted text end trout and salmon in streams and lakes and
Lake Superior new text begin ; and monitoring and evaluating stocked trout and
salmon new text end ;

(3) acquisition of easements and fee title along trout
waters;

(4) identifying easement and fee title areas along trout
waters; and

(5) research and special management projects on new text begin trout
streams, trout lakes, and new text end Lake Superior and deleted text begin the anadromous
deleted text end portions of its tributaries.

(b) Money in the account may not be used for costs unless
they are directly related to a specific parcel of land or body
of water under paragraph (a) deleted text begin or deleted text end new text begin , new text end to specific fish rearing
activities under paragraph (a), clause (2) new text begin , or for costs
associated with supplies and equipment to implement trout and
salmon management activities under paragraph (a) new text end .

Sec. 98.

Minnesota Statutes 2004, section 97A.135,
subdivision 2a, is amended to read:

Subd. 2a.

Disposal of land in wildlife management areas.

(a) The commissioner may sell or exchange land in a wildlife
management area authorized by designation under section 86A.07,
subdivision 3, 97A.133, or 97A.145 if the commissioner vacates
the designation before the sale or exchange in accordance with
this subdivision. The designation may be vacated only if the
commissioner finds, after a public hearing, that the disposal of
the land is in the public interest.

(b) A sale under this subdivision is subject to sections
94.09 to 94.16. An exchange under this subdivision is subject
to sections 94.341 to deleted text begin 94.348 deleted text end new text begin 94.347 new text end .

(c) Revenue received from a sale authorized under paragraph
(a) is appropriated to the commissioner for acquisition of
replacement wildlife management lands.

(d) Land acquired by the commissioner under this
subdivision must meet the criteria in section 86A.05,
subdivision 8, and as soon as possible after the acquisition
must be designated as a wildlife management area under section
86A.07, subdivision 3, 97A.133, or 97A.145.

(e) In acquiring land under this subdivision, the
commissioner must give priority to land within the same
geographic region of the state as the land conveyed.

Sec. 99.

Minnesota Statutes 2004, section 97A.4742,
subdivision 4, is amended to read:

Subd. 4.

Annual report.

By December 15 each year, the
commissioner shall submit a report to the legislative committees
having jurisdiction over environment and natural resources
appropriations and environment and natural resources policy.
The report shall state the amount of revenue received in and
expenditures made from revenue transferred from the lifetime
fish and wildlife trust fund to the game and fish fund deleted text begin and shall
describe projects funded, locations of the projects, and results
and benefits from the projects deleted text end . The report may be included in
the game and fish fund report required by section 97A.055,
subdivision 4. The commissioner shall make the annual report
available to the public.

Sec. 100.

Minnesota Statutes 2004, section 97A.475,
subdivision 3, is amended to read:

Subd. 3.

Nonresident hunting.

Fees for the following
licenses, to be issued to nonresidents, are:

(1) to take small game, $73;

(2) to take deer with firearms, $135;

(3) to take deer by archery, the greater of:

(i) an amount equal to the total amount of license fees and
surcharges charged to a Minnesota resident to take deer by
archery in the person's state or province of residence; or

(ii) $135;

(4) to take bear, $195;

(5) to take turkey, $73;

(6) to take raccoon, bobcat, fox, new text begin or new text end coyote, deleted text begin or lynx, deleted text end $155;

(7) to take antlered deer in more than one zone, $270; and

(8) to take Canada geese during a special season, $4.

Sec. 101.

Minnesota Statutes 2004, section 97A.482, is
amended to read:

97A.482 LICENSE APPLICATIONS; COLLECTION OF SOCIAL
SECURITY NUMBERS.

(a) All applicants for individual noncommercial game and
fish licenses under this chapter and chapters 97B and 97C must
include the applicant's social security number on the license
application. If an applicant does not have a Social Security
number, the applicant must certify that the applicant does not
have a Social Security number.

(b) The Social Security numbers collected by the
commissioner on game and fish license applications are private
data under section 13.355, subdivision 1, and must be provided
by the commissioner to the commissioner of human services for
child support enforcement purposes. Title IV-D of the Social
Security Act, United States Code, title 42, section 666(a)(13),
requires the collection of Social Security numbers on game and
fish license applications for child support enforcement purposes.

new text begin (c) The commissioners of human services and natural
resources shall request a waiver from the secretary of health
and human services to exclude any applicant under the age of 16
from the requirement under this section and under cross-country
ski licensing sections to provide the applicant's Social
Security number. If a waiver is granted, this section will be
so amended effective January 1, 2006, or upon the effective date
of the waiver, whichever is later.
new text end

Sec. 102.

Minnesota Statutes 2004, section 97A.485,
subdivision 6, is amended to read:

Subd. 6.

Licenses to be sold and issuing fees.

(a)
Persons authorized to sell licenses under this section must
issue the following licenses for the license fee and the
following issuing fees:

(1) to take deer or bear with firearms and by archery, the
issuing fee is $1;

(2) Minnesota sporting, the issuing fee is $1; and

(3) to take small game, to take fish by angling or by
spearing, and to trap fur-bearing animals, the issuing fee is
$1;

(4) for a deleted text begin trout and salmon deleted text end stamp that is not issued
simultaneously with deleted text begin an angling or sporting deleted text end new text begin a new text end license, an issuing
fee of 50 cents may be charged at the discretion of the
authorized seller;

(5) for stamps deleted text begin other than a trout and salmon stamp, and for
a special season Canada goose license deleted text end new text begin issued simultaneously with
a license new text end , there is no fee; deleted text begin and
deleted text end

(6) for licenses new text begin , seals, tags, or coupons new text end issued without a
fee under section 97A.441 new text begin or 97A.465 new text end , deleted text begin there is no deleted text end new text begin an issuing new text end fee
new text begin of 50 cents may be charged at the discretion of the authorized
seller;
new text end

new text begin (7) for lifetime licenses, there is no fee; and
new text end

new text begin (8) for all other licenses, permits, renewals, or
applications or any other transaction through the electronic
licensing system under this chapter or any other chapter when an
issuing fee is not specified, an issuing fee of 50 cents may be
charged at the discretion of the authorized seller new text end .

(b) An issuing fee may not be collected for issuance of a
trout and salmon stamp if a stamp validation is issued
simultaneously with the related angling or sporting license.
Only one issuing fee may be collected when selling more than one
trout and salmon stamp in the same transaction after the end of
the season for which the stamp was issued.

(c) The agent shall keep the issuing fee as a commission
for selling the licenses.

(d) The commissioner shall collect the issuing fee on
licenses sold by the commissioner.

(e) A license, except stamps, must state the amount of the
issuing fee and that the issuing fee is kept by the seller as a
commission for selling the licenses.

(f) For duplicate licenses, new text begin including licenses issued
without a fee, new text end the issuing fees are:

(1) for licenses to take big game, 75 cents; and

(2) for other licenses, 50 cents.

(g) The commissioner may issue one-day angling licenses in
books of ten licenses each to fishing guides operating charter
boats upon receipt of payment of all license fees, excluding the
issuing fee required under this section. Copies of sold and
unsold licenses shall be returned to the commissioner. The
commissioner shall refund the charter boat captain for the
license fees of all unsold licenses. Copies of sold licenses
shall be maintained by the commissioner for one year.

Sec. 103.

Minnesota Statutes 2004, section 97A.485,
subdivision 7, is amended to read:

Subd. 7.

Electronic licensing system commission.

The
commissioner shall retain for the operation of the electronic
licensing system deleted text begin a commission of 4.7 percent of deleted text end new text begin the commission
established under section 84.027, subdivision 15, and issuing
fees collected by the commissioner on new text end all license fees
collected, excluding:

(1) the small game surcharge; new text begin and
new text end

(2) deleted text begin all issuing fees; and
deleted text end

deleted text begin (3) deleted text end $2.50 of the license fee for the licenses in section
97A.475, subdivisions 6, clauses (1), (2), and (4), 7, 8, 12,
and 13.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 6, 2005.
new text end

Sec. 104.

Minnesota Statutes 2004, section 97A.551, is
amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Tagging and registration. new text end

new text begin The commissioner may,
by rule, require persons taking, possessing, and transporting
certain species of fish to tag the fish with a special fish
management tag and may require registration of tagged fish. A
person may not possess or transport a fish species taken in the
state for which a special fish management tag is required unless
a tag is attached to the fish in a manner prescribed by the
commissioner. The commissioner shall prescribe the manner of
issuance and the type of tag as authorized under section
97C.087. The tag must be attached to the fish as prescribed by
the commissioner immediately upon reducing the fish to
possession and must remain attached to the fish until the fish
is processed or consumed. Species for which a special fish
management tag is required must be transported undressed.
new text end

Sec. 105.

Minnesota Statutes 2004, section 97B.005,
subdivision 1, as amended by Laws 2005, chapter 146, section 21,
is amended to read:

Subdivision 1.

Field training.

A person may not train
hunting dogs afield on public lands new text begin administered by the
commissioner new text end from April 16 to July 14 new text begin except as specifically
authorized by permit or rule new text end .

Sec. 106.

Minnesota Statutes 2004, section 97B.015,
subdivision 7, is amended to read:

Subd. 7.

Fee for duplicate certificate.

The commissioner
shall collect a fee new text begin , to include a $1 issuing fee for licensing
agents, new text end for issuing a duplicate firearms safety certificate.
The commissioner shall establish a fee that neither
significantly overrecovers nor underrecovers costs, including
overhead costs, involved in providing the service. The fee is
not subject to the rulemaking provisions of chapter 14 and
section 14.386 does not apply. The commissioner may establish
the fee notwithstanding section 16A.1283. new text begin The duplicate
certificate fees, except for the issuing fee for licensing
agents under this subdivision, shall be deposited in the game
and fish fund and, except for the electronic licensing system
commission established by the commissioner under section 84.027,
subdivision 15, and issuing fees collected by the commissioner,
are appropriated annually to the Enforcement Division of the
Department of Natural Resources for the administration of the
firearm safety course program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 6, 2005.
new text end

Sec. 107.

Minnesota Statutes 2004, section 97B.020, is
amended to read:

97B.020 FIREARMS SAFETY CERTIFICATE REQUIRED.

(a) Except as provided in this section and section 97A.451,
subdivision 3a, a person born after December 31, 1979, may not
obtain an annual license to take wild animals by firearms unless
the person has new text begin :
new text end

new text begin (1) new text end a firearms safety certificate or equivalent
certificate deleted text begin , deleted text end new text begin ;
new text end

new text begin (2) a new text end driver's license or identification card with a valid
firearms safety qualification indicator issued under section
171.07, subdivision 13 deleted text begin , deleted text end new text begin ;
new text end

new text begin (3) a new text end previous hunting license deleted text begin , deleted text end new text begin with a valid firearms
safety qualification indicator; new text end or

new text begin (4) new text end other evidence indicating that the person has completed
in this state or in another state a hunter safety course
recognized by the department under a reciprocity agreement or
certified by the department as substantially similar.

new text begin (b) new text end A person who is on active duty and has successfully
completed basic training in the United States armed forces,
reserve component, or National Guard may obtain a hunting
license or approval authorizing hunting regardless of whether
the person is issued a firearms safety certificate.

deleted text begin (b) deleted text end new text begin (c) new text end A person born after December 31, 1979, may not use
a lifetime license to take wild animals by firearms, unless the
person meets the requirements for obtaining an annual license
under paragraph (a) new text begin or (b) new text end .

Sec. 108.

Minnesota Statutes 2004, section 97B.025, as
amended by Laws 2005, chapter 146, section 26, is amended to
read:

97B.025 [HUNTER AND TRAPPER EDUCATION.]

(a) The commissioner may establish education courses for
hunters. The commissioner shall collect a fee from each person
attending a course. A fee new text begin , to include a $1 issuing fee for
licensing agents, new text end shall be collected for issuing a duplicate
certificate. The commissioner shall establish the fees in a
manner that neither significantly overrecovers nor underrecovers
costs, including overhead costs, involved in providing the
services. The fees are not subject to the rulemaking provisions
of chapter 14 and section 14.386 does not apply. The
commissioner may establish the fees notwithstanding section
16A.1283. The fees new text begin , except for the issuing fee for licensing
agents under this subdivision, new text end shall be deposited in the game
and fish fund and the amount thereof new text begin , except for the electronic
licensing system commission established by the commissioner
under section 84.027, subdivision 15, new text end is appropriated annually
to the Enforcement Division of the Department of Natural
Resources for the administration of the program. In addition to
the fee established by the commissioner for each course,
instructors may charge each person up to the established fee
amount for class materials and expenses. School districts may
cooperate with the commissioner and volunteer instructors to
provide space for the classroom portion of the training.

(b) The commissioner shall enter into an agreement with a
statewide nonprofit trappers association to conduct a trapper
education program. At a minimum, the program must include at
least six hours of classroom, electronic, or correspondence
instruction and in the field training. The program must include
a review of state trapping laws and regulations, trapping
ethics, the setting and tending of traps and snares, tagging and
registration requirements, and the preparation of pelts. The
association shall issue a certificate to persons who complete
the program. The association shall be responsible for all costs
of conducting the education program, and shall not charge any
fee for attending the course.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 6, 2005.
new text end

Sec. 109.

Minnesota Statutes 2004, section 97B.601,
subdivision 3, is amended to read:

Subd. 3.

Nonresidents: raccoon, bobcat, fox, coyote deleted text begin ,
canada lynx deleted text end .

A nonresident may not take raccoon, bobcat, fox,
new text begin or new text end coyote deleted text begin , or Canada lynx deleted text end by firearms without a separate license
to take that animal in addition to a small game license.

Sec. 110.

Minnesota Statutes 2004, section 97B.605, is
amended to read:

97B.605 COMMISSIONER MAY RESTRICT TAKING OF CERTAIN SMALL
GAME ANIMALS.

The commissioner may prescribe restrictions on and
designate areas where gray and fox squirrels, cottontail and
jack rabbits, snowshoe hare, raccoon, deleted text begin lynx, deleted text end bobcat, red fox and
gray fox, fisher, pine marten, opossum, and badger may be taken
and possessed.

Sec. 111.

Minnesota Statutes 2004, section 97B.625, as
amended by Laws 2005, chapter 146, section 34, is amended to
read:

97B.625 [ deleted text begin LYNX AND deleted text end BOBCAT.]

Subdivision 1.

Season.

Based upon population estimates,
the commissioner may set the open season for deleted text begin lynx or deleted text end bobcat.

Subd. 2.

use of a snare.

A person may use a snare to
take deleted text begin lynx or deleted text end bobcat, as prescribed by the commissioner, without
a permit.

Sec. 112.

Minnesota Statutes 2004, section 97B.641, is
amended to read:

97B.641 COUGAR new text begin , LYNX, new text end AND WOLVERINE.

There is no open season for cougar new text begin , lynx, new text end or wolverine.

Sec. 113.

Minnesota Statutes 2004, section 97B.655,
subdivision 1, is amended to read:

Subdivision 1.

Owners and occupants may take certain
animals.

A person may take mink, squirrel, rabbit, hare,
raccoon, deleted text begin lynx, deleted text end bobcat, fox, opossum, muskrat, or beaver on land
owned or occupied by the person where the animal is causing
damage. The person may take the animal without a license and in
any manner except by poison, or artificial lights in the closed
season. Raccoons may be taken under this subdivision with
artificial lights during open season. A person that kills mink,
raccoon, deleted text begin lynx, deleted text end bobcat, fox, opossum, muskrat, or beaver under
this subdivision must notify a conservation officer or employee
of the Wildlife Division within 24 hours after the animal is
killed.

Sec. 114.

Minnesota Statutes 2004, section 97C.085, is
amended to read:

97C.085 PERMIT REQUIRED FOR TAGGING FISH.

A person may not tag or otherwise mark a live fish for
identification without a permit from the commissioner new text begin , except
for special fish management tags as authorized under section
97A.551 new text end .

Sec. 115.

new text begin [97C.087] SPECIAL FISH MANAGEMENT TAGS.
new text end

new text begin Subdivision 1. new text end

new text begin Tags to be issued. new text end

new text begin If the commissioner
determines it is necessary to require that a species of fish be
tagged with a special fish management tag, the commissioner
shall prescribe, by rule, the species to be tagged, tagging
procedures, and eligibility requirements.
new text end

new text begin Subd. 2. new text end

new text begin Application for tag. new text end

new text begin Application for special
fish management tags must be accompanied by a $5, nonrefundable
application fee for each tag. A person may not make more than
one tag application each year. If a person makes more than one
application, the person is ineligible for a special fish
management tag for that season after determination by the
commissioner, without a hearing.
new text end

Sec. 116.

Minnesota Statutes 2004, section 103B.101,
subdivision 9, is amended to read:

Subd. 9.

Powers and duties.

In addition to the powers
and duties prescribed elsewhere, the board shall:

(1) coordinate the water and soil resources planning
activities of counties, soil and water conservation districts,
watershed districts, watershed management organizations, and any
other local units of government through its various authorities
for approval of local plans, administration of state grants, and
by other means as may be appropriate;

(2) facilitate communication and coordination among state
agencies in cooperation with the Environmental Quality Board,
and between state and local units of government, in order to
make the expertise and resources of state agencies involved in
water and soil resources management available to the local units
of government to the greatest extent possible;

(3) coordinate state and local interests with respect to
the study in southwestern Minnesota under United States Code,
title 16, section 1009;

(4) develop information and education programs designed to
increase awareness of local water and soil resources problems
and awareness of opportunities for local government involvement
in preventing or solving them;

(5) provide a forum for the discussion of local issues and
opportunities relating to water and soil resources management;

(6) adopt an annual budget and work program that integrate
the various functions and responsibilities assigned to it by
law; and

(7) report to the governor and the legislature by October
15 of each even-numbered year with an assessment of board
programs and recommendations for any program changes and board
membership changes necessary to improve state and local efforts
in water and soil resources management.

The board may accept grants, gifts, donations, or
contributions in money, services, materials, or otherwise from
the United States, a state agency, or other source to achieve an
authorized purpose. The board may enter into a contract or
agreement necessary or appropriate to accomplish the transfer.
new text begin The board may receive and expend money to acquire conservation
easements, as defined in chapter 84C, on behalf of the state and
federal government consistent with the Camp Ripley's Army
Compatible Use Buffer Project.
new text end

Any money received is hereby appropriated and dedicated for
the purpose for which it is granted.

Sec. 117.

Minnesota Statutes 2004, section 103E.081, is
amended by adding a subdivision to read:

new text begin Subd 2a. new text end [PLANTING TREES OVER PUBLIC TILE.] new text begin A person must
not knowingly plant trees over a public drain tile, unless the
person planting the trees receives permission from the drainage
authority.
new text end

Sec. 118.

Minnesota Statutes 2004, section 103E.081, is
amended by adding a subdivision to read:

new text begin Subd. 2b. new text end

new text begin Planting trees over private tile. new text end

new text begin A person
must not knowingly plant trees over a private drain tile that
provides for the drainage of land owned or leased by another
person, unless the person planting the trees receives permission
from all persons who receive drainage benefits from the drain
tile.
new text end

Sec. 119.

Minnesota Statutes 2004, section 103F.535,
subdivision 1, is amended to read:

Subdivision 1.

Reservation of marginal land and
wetlands.

(a) Marginal land and wetlands are withdrawn from
sale or exchange unless:

(1) notice of the existence of the nonforested marginal
land or wetlands, in a form prescribed by the Board of Water and
Soil Resources, is provided to prospective purchasers; and

(2) the deed contains a restrictive covenant, in a form
prescribed by the Board of Water and Soil Resources, that
precludes enrollment of the land in a state-funded program
providing compensation for conservation of marginal land or
wetlands.

(b) This section does not apply to transfers of land by the
Board of Water and Soil Resources to correct errors in legal
descriptions under section 103F.515, subdivision 8, or to
transfers by the commissioner of natural resources for:

(1) land that is currently in nonagricultural commercial
use if a restrictive covenant would interfere with the
commercial use;

(2) land in platted subdivisions;

(3) conveyances of land to correct errors in legal
descriptions under section 84.0273;

(4) exchanges of nonagricultural land with the federal
government, or exchanges of Class A, Class B, and deleted text begin Class C
deleted text end new text begin riparian new text end nonagricultural land with local units of government
under sections 94.342, 94.343, new text begin and new text end 94.344 deleted text begin , and 94.349 deleted text end ;

(5) land transferred to political subdivisions for public
purposes under sections 84.027, subdivision 10, and 94.10; and

(6) land not needed for trail purposes that is sold to
adjacent property owners and lease holders under section 85.015,
subdivision 1, paragraph (b).

(c) This section does not apply to transfers of land by the
commissioner of administration or transportation or by the
Minnesota Housing Finance Agency, or to transfers of
tax-forfeited land under chapter 282 if:

(1) the land is in platted subdivisions; or

(2) the conveyance is a transfer to correct errors in legal
descriptions.

(d) This section does not apply to transfers of land by the
commissioner of administration or by the Minnesota Housing
Finance Agency for:

(1) land that is currently in nonagricultural commercial
use if a restrictive covenant would interfere with the
commercial use; or

(2) land transferred to political subdivisions for public
purposes under sections 84.027, subdivision 10, and 94.10.

Sec. 120.

new text begin [103F.950] BEAVER DAMAGE CONTROL GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Board of Water and
Soil Resources shall establish a beaver damage control grant
program to provide grants for the control of beaver activities
causing damage to public waters, roads, and ditches and adjacent
private property. The grants may be made to:
new text end

new text begin (1) a joint powers board established under section 471.59
by two or more governmental units;
new text end

new text begin (2) soil and water conservation districts; and
new text end

new text begin (3) Indian tribal governments.
new text end

new text begin Subd. 2. new text end

new text begin Grant amount. new text end

new text begin The board may provide up to 50
percent of the costs of implementing a beaver damage control
program by a joint powers board.
new text end

new text begin Subd. 3. new text end

new text begin Awarding of grants. new text end

new text begin Applications for grants
must be made to the board on forms prescribed by the board. The
board shall consult with town supervisors and county
commissioners representing different areas of the state in
developing the application form. A joint powers board seeking a
grant may be required to supply information on the beaver
control program it has adopted, the extent of the problem in the
geographic area covered by the joint powers agreement, and the
ability of the joint powers board to match the state grant. The
board may prioritize the grant applications based upon the
information requested as part of the grant application.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin (a) Within one year after receiving a
grant under this section, a joint powers board must report to
the Board of Water and Soil Resources on the joint powers
board's efforts to control beaver in the area.
new text end

new text begin (b) By December 15 of each even-numbered year, the board
shall report to the senate and house environment and natural
resources policy and finance committees on the efforts under
this section to control beaver.
new text end

Sec. 121.

Minnesota Statutes 2004, section 103G.271,
subdivision 6, is amended to read:

Subd. 6.

Water use permit processing fee.

(a) Except as
described in paragraphs (b) to (f), a water use permit
processing fee must be prescribed by the commissioner in
accordance with the schedule of fees in this subdivision for
each water use permit in force at any time during the year. The
schedule is as follows, with the stated fee in each clause
applied to the total amount appropriated:

(1) $101 for amounts not exceeding 50,000,000 gallons per
year;

(2) $3 per 1,000,000 gallons for amounts greater than
50,000,000 gallons but less than 100,000,000 gallons per year;

(3) $3.50 per 1,000,000 gallons for amounts greater than
100,000,000 gallons but less than 150,000,000 gallons per year;

(4) $4 per 1,000,000 gallons for amounts greater than
150,000,000 gallons but less than 200,000,000 gallons per year;

(5) $4.50 per 1,000,000 gallons for amounts greater than
200,000,000 gallons but less than 250,000,000 gallons per year;

(6) $5 per 1,000,000 gallons for amounts greater than
250,000,000 gallons but less than 300,000,000 gallons per year;

(7) $5.50 per 1,000,000 gallons for amounts greater than
300,000,000 gallons but less than 350,000,000 gallons per year;

(8) $6 per 1,000,000 gallons for amounts greater than
350,000,000 gallons but less than 400,000,000 gallons per year;

(9) $6.50 per 1,000,000 gallons for amounts greater than
400,000,000 gallons but less than 450,000,000 gallons per year;

(10) $7 per 1,000,000 gallons for amounts greater than
450,000,000 gallons but less than 500,000,000 gallons per year;
and

(11) $7.50 per 1,000,000 gallons for amounts greater than
500,000,000 gallons per year.

(b) For once-through cooling systems, a water use
processing fee must be prescribed by the commissioner in
accordance with the following schedule of fees for each water
use permit in force at any time during the year:

(1) for nonprofit corporations and school districts, $150
per 1,000,000 gallons; and

(2) for all other users, deleted text begin $200 deleted text end new text begin $300 new text end per 1,000,000 gallons.

(c) The fee is payable based on the amount of water
appropriated during the year and, except as provided in
paragraph (f), the minimum fee is $100.

(d) For water use processing fees other than once-through
cooling systems:

(1) the fee for a city of the first class may not exceed
$250,000 per year;

(2) the fee for other entities for any permitted use may
not exceed:

(i) $50,000 per year for an entity holding three or fewer
permits;

(ii) $75,000 per year for an entity holding four or five
permits;

(iii) $250,000 per year for an entity holding more than
five permits;

(3) the fee for agricultural irrigation may not exceed $750
per year;

(4) the fee for a municipality that furnishes electric
service and cogenerates steam for home heating may not exceed
$10,000 for its permit for water use related to the cogeneration
of electricity and steam; and

(5) no fee is required for a project involving the
appropriation of surface water to prevent flood damage or to
remove flood waters during a period of flooding, as determined
by the commissioner.

(e) Failure to pay the fee is sufficient cause for revoking
a permit. A penalty of two percent per month calculated from
the original due date must be imposed on the unpaid balance of
fees remaining 30 days after the sending of a second notice of
fees due. A fee may not be imposed on an agency, as defined in
section 16B.01, subdivision 2, or federal governmental agency
holding a water appropriation permit.

(f) The minimum water use processing fee for a permit
issued for irrigation of agricultural land is $20 for years in
which:

(1) there is no appropriation of water under the permit; or

(2) the permit is suspended for more than seven consecutive
days between May 1 and October 1.

new text begin (g) A surcharge of $20 per million gallons in addition to
the fee prescribed in paragraph (a) shall be applied to the
volume of water used in June, July, and August that exceeds the
volume of water used in January for municipal water use,
irrigation of golf courses, and landscape irrigation.
new text end

Sec. 122.

Minnesota Statutes 2004, section 103G.301,
subdivision 2, is amended to read:

Subd. 2.

Permit application fees.

(a) An application for
a permit authorized under this chapter, and each request to
amend or transfer an existing permit, must be accompanied by a
permit application fee to defray the costs of receiving,
recording, and processing the application or request to amend or
transfer.

(b) The fee to apply for a permit to appropriate water, a
permit to construct or repair a dam that is subject to dam
safety inspection, or a state general permit or to apply for the
state water bank program is deleted text begin $75 deleted text end new text begin $150 new text end . The application fee for a
permit to work in public waters or to divert waters for mining
must be at least deleted text begin $75 deleted text end new text begin $150 new text end , but not more than deleted text begin $500 deleted text end new text begin $1,000 new text end ,
according to a schedule of fees adopted under section 16A.1285.

Sec. 123.

Minnesota Statutes 2004, section 103G.615,
subdivision 2, is amended to read:

Subd. 2.

Fees.

(a) The commissioner shall establish a
fee schedule for permits to control or harvest aquatic plants
other than wild rice. The fees must be set by rule, and section
16A.1283 does not apply. The fees may not exceed $750 per
permit based upon the cost of receiving, processing, analyzing,
and issuing the permit, and additional costs incurred after the
application to inspect and monitor the activities authorized by
the permit, and enforce aquatic plant management rules and
permit requirements.

(b) The fee for a permit for the control of rooted aquatic
vegetation is $35 for each contiguous parcel of shoreline owned
by an owner. This fee may not be charged for permits issued in
connection with purple loosestrife control or lakewide Eurasian
water milfoil control programs.

(c) A fee may not be charged to the state or a federal
governmental agency applying for a permit.

(d) The money received for the permits under this
subdivision shall be deposited in the treasury and credited to
the deleted text begin game and fish fund deleted text end new text begin water recreation account new text end .

Sec. 124.

Minnesota Statutes 2004, section 103I.681,
subdivision 11, is amended to read:

Subd. 11.

Permit fee schedule.

(a) The commissioner of
natural resources shall adopt a permit fee schedule under
chapter 14. The schedule may provide minimum fees for various
classes of permits, and additional fees, which may be imposed
subsequent to the application, based on the cost of receiving,
processing, analyzing, and issuing the permit, and the actual
inspecting and monitoring of the activities authorized by the
permit, including costs of consulting services.

(b) A fee may not be imposed on a state or federal
governmental agency applying for a permit.

(c) The fee schedule may provide for the refund of a fee,
in whole or in part, under circumstances prescribed by the
commissioner of natural resources. deleted text begin Permit deleted text end Fees received must be
deposited in the state treasury and credited to the general
fund. deleted text begin The amount of money necessary to pay the refunds is
deleted text end new text begin Permit fees received are new text end appropriated annually from the general
fund to the commissioner of natural resources new text begin for the costs of
inspecting and monitoring the activities authorized by the
permit, including costs of consulting services new text end .

Sec. 125.

Minnesota Statutes 2004, section 115.06,
subdivision 4, is amended to read:

Subd. 4.

Citizen monitoring of water quality.

(a) The
agency may encourage citizen monitoring of ambient water quality
for public waters by:

(1) providing technical assistance to citizen and local
group water quality monitoring efforts;

(2) integrating citizen monitoring data into water quality
assessments and agency programs, provided that the data adheres
to agency quality assurance and quality control protocols; and

(3) seeking public and private funds to:

(i) collaboratively develop clear guidelines for water
quality monitoring procedures and data management practices for
specific data and information uses;

(ii) distribute the guidelines to citizens, local
governments, and other interested parties;

(iii) improve and expand water quality monitoring
activities carried out by the agency; and

(iv) continue to improve electronic and Web access to water
quality data and information about public waters that have been
either fully or partially assessed.

(b) This subdivision does not authorize a citizen to enter
onto private property for any purpose.

(c) By January 15 of each odd-numbered year, the
commissioner shall report to the senate and house of
representatives committees with jurisdiction over environmental
policy and finance on activities under this section.

deleted text begin (d) This subdivision shall sunset June 30, 2005.
deleted text end

Sec. 126.

Minnesota Statutes 2004, section 115.55,
subdivision 5, is amended to read:

Subd. 5.

Inspection.

(a) An inspection shall be required
for all new construction or replacement of a system to determine
compliance with agency rule or local standards. The manner and
timing of inspection may be determined by the applicable local
ordinance. The inspection requirement may be satisfied by a
review by the designated local official of video, electronic,
photographic, or other evidence of compliance provided by the
installer.

(b) Except as provided in subdivision 5b, paragraph (b), a
local unit of government may not issue a building permit or
variance for the addition of a bedroom on property served by a
system unless the system is in compliance with the applicable
requirements, as evidenced by a certificate of compliance issued
by a licensed inspector or site evaluator or designer. A local
unit of government may temporarily waive the certificate of
compliance requirement for a building permit or variance for
which application is made during the period from November 1 to
April 30, provided that an inspection of the system is performed
by the following June 1 and the applicant submits a certificate
of compliance by the following September 30. This paragraph
does not apply if the local unit of government does not have an
ordinance requiring a building permit to add a bedroom.

(c) A certificate of compliance for an existing system is
valid for three years from the date of issuance unless the local
unit of government finds evidence of an imminent threat to
public health or safety requiring removal and abatement under
section 145A.04, subdivision 8.

(d) A certificate of compliance for a new system is valid
for five years from the date of issuance unless the local unit
of government finds evidence of an imminent threat to public
health or safety requiring removal and abatement under section
145A.04, subdivision 8.

(e) A licensed inspector who inspects an existing system
may subsequently design and install a new system for that
property, provided the inspector is licensed to install
individual sewage treatment systems.

new text begin (f) No system professional may use the professional's
position with government, either as an employee or a contractor,
to solicit business for the professional's private system
enterprise.
new text end

Sec. 127.

Minnesota Statutes 2004, section 115.551, is
amended to read:

115.551 TANK FEE.

new text begin (a) new text end An installer shall pay a fee of $25 for each septic
system tank installed in the previous calendar year. The fees
required under this section must be paid to the commissioner by
January 30 of each year. The revenue derived from the fee
imposed under this section shall be deposited in the
environmental fund and is exempt from section 16A.1285.

new text begin (b) Notwithstanding paragraph (a), for the purposes of
performance-based individual sewage treatment systems, the tank
fee is limited to $25 per household system installation.
new text end

Sec. 128.

Minnesota Statutes 2004, section 115A.072,
subdivision 1, is amended to read:

Subdivision 1.

Environmental education advisory board.

(a) The director shall provide for the development and
implementation of environmental education programs that are
designed to meet the goals listed in section 115A.073.

(b) The Environmental Education Advisory Board shall advise
the director in carrying out the director's responsibilities
under this section. The board consists of 20 members as follows:

(1) a representative of the Pollution Control Agency,
appointed by the commissioner of the agency;

(2) a representative of the Department of Education,
appointed by the commissioner of education;

(3) a representative of the Department of Agriculture,
appointed by the commissioner of agriculture;

(4) a representative of the Department of Health, appointed
by the commissioner of health;

(5) a representative of the Department of Natural
Resources, appointed by the commissioner of natural resources;

(6) a representative of the Board of Water and Soil
Resources, appointed by that board;

(7) a representative of the Environmental Quality Board,
appointed by that board;

(8) a representative of the Board of Teaching, appointed by
that board;

(9) a representative of the University of Minnesota
Extension Service, appointed by the director of the service;

(10) a citizen member from each congressional district, of
which two must be licensed teachers currently teaching in the
K-12 system, appointed by the director; and

(11) three at-large citizen members, appointed by the
director.

The citizen members shall serve two-year terms. Compensation of
board members is governed by section 15.059, subdivision 6. The
board expires on June 30, deleted text begin 2003 deleted text end new text begin 2008 new text end .

Sec. 129.

Minnesota Statutes 2004, section 115A.12, is
amended to read:

115A.12 ADVISORY COUNCILS.

(a) The director shall establish deleted text begin a Solid Waste Management
Advisory Council and a Prevention, Reduction, and Recycling deleted text end new text begin an
Environmental Innovations new text end Advisory Council that deleted text begin are deleted text end new text begin is new text end broadly
representative of the geographic areas and interests of the
state.

deleted text begin (b) The solid waste council shall have not less than nine
nor more than 21 members. The membership of the solid waste
council shall consist of one-third citizen representatives,
one-third representatives from local government units, and
one-third representatives from private solid waste management
firms. The solid waste council shall contain at least three
members experienced in the private recycling industry and at
least one member experienced in each of the following areas:
state and municipal finance; solid waste collection, processing,
and disposal; and solid waste reduction and resource recovery.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end The deleted text begin Prevention, Reduction, and Recycling
deleted text end new text begin Environmental Innovations new text end Advisory Council shall have not less
than nine deleted text begin nor deleted text end new text begin or new text end more than 24 members. The membership shall
consist of deleted text begin one-third deleted text end citizen deleted text begin representatives deleted text end , deleted text begin one-third
representatives of deleted text end government, new text begin institutional, new text end and deleted text begin one-third
representatives of deleted text end business deleted text begin and industry deleted text end new text begin representatives new text end . deleted text begin The
director may appoint nonvoting members from other environmental
and business assistance providers in the state.
deleted text end

deleted text begin (d) deleted text end new text begin (c) new text end The deleted text begin chairs deleted text end new text begin chair new text end of the advisory deleted text begin councils
deleted text end new text begin council new text end shall be appointed by the director. The director shall
provide administrative and staff services for the advisory
deleted text begin councils deleted text end new text begin council new text end . The advisory deleted text begin councils deleted text end new text begin council new text end shall have such
duties as are assigned by law or the director. The deleted text begin Solid Waste
Advisory Council shall make recommendations to the office on its
solid waste management activities. The Prevention, Reduction,
and Recycling deleted text end new text begin Environmental Innovations new text end Advisory Council shall
make recommendations to the office on policy, programs, and
legislation in pollution prevention, waste reduction, reuse deleted text begin and deleted text end new text begin ,
new text end recycling, new text begin and new text end resource conservation deleted text begin , and the management of
hazardous waste deleted text end . new text begin The Environmental Innovations Advisory Council
shall focus on developing and implementing innovative programs
that improve Minnesota's environment by emphasizing front-end
preventative, and resource conservation approaches to preventing
waste and pollution. The council shall emphasize partnerships
of government, citizens, institutions, and business to develop
and implement these programs. new text end Members of the advisory deleted text begin councils
deleted text end new text begin council new text end shall serve without compensation but shall be reimbursed
for their reasonable expenses as determined by the director.
Notwithstanding section 15.059, subdivision 5, the deleted text begin Solid Waste
Management Advisory Council and the Prevention, Reduction, and
Recycling deleted text end new text begin Environmental Innovations new text end Advisory Council deleted text begin expire
deleted text end new text begin expires new text end June 30, deleted text begin 2003 deleted text end new text begin 2009 new text end .

Sec. 130.

Minnesota Statutes 2004, section 115A.554, is
amended to read:

115A.554 AUTHORITY OF SANITARY DISTRICTS.

A sanitary district has the authorities and duties of
counties within the district's boundary for purposes of sections
115A.0716; 115A.46, subdivisions 4 and 5; 115A.48; 115A.545;
115A.551; 115A.552; 115A.553; 115A.919; 115A.929; 115A.93;
115A.96, subdivision 6; 115A.961; 116.072; 375.18, subdivision
14; new text begin 400.04; 400.06; 400.07; new text end 400.08; 400.16; and 400.161.

Sec. 131.

Minnesota Statutes 2004, section 115A.929, is
amended to read:

115A.929 FEES; ACCOUNTING.

Each political subdivision that provides for solid waste
management shall account for all revenue collected from waste
management fees, together with interest earned on revenue from
the fees, separately from other revenue collected by the
political subdivision and shall report revenue collected from
the fees and use of the revenue separately from other revenue
and use of revenue in any required financial report or audit.
deleted text begin Each political subdivision must file with the director, on or
before June 30 annually, the separate report of all revenue
collected from waste management fees, together with interest on
revenue from the fees, for the previous year. deleted text end For the purposes
of this section, "waste management fees" means:

(1) all fees, charges, and surcharges collected under
sections 115A.919, 115A.921, and 115A.923;

(2) all tipping fees collected at waste management
facilities owned or operated by the political subdivision;

(3) all charges imposed by the political subdivision for
waste collection and management services; and

(4) any other fees, charges, or surcharges imposed on waste
or for the purpose of waste management, whether collected
directly from generators or indirectly through property taxes or
as part of utility or other charges for services provided by the
political subdivision.

Sec. 132.

Minnesota Statutes 2004, section 115A.9565, is
amended to read:

115A.9565 CATHODE-RAY TUBE PROHIBITION.

Effective July 1, deleted text begin 2005 deleted text end new text begin 2006 new text end , a person may not place in
mixed municipal solid waste an electronic product containing a
cathode-ray tube.

Sec. 133.

Minnesota Statutes 2004, section 115B.48,
subdivision 8, is amended to read:

Subd. 8.

Full-time equivalence.

"Full-time equivalence"
means 2,000 hours worked by employees, owners, and others in a
dry cleaning facility during a 12-month period beginning July 1
of the preceding year and running through June 30 of the year in
which the annual registration fee is due. For those dry
cleaning facilities that were in business less than the 12-month
period, full-time equivalence means the total of all of the
hours worked in the dry cleaning facility, divided by 2,000 and
multiplied by a fraction, the numerator of which is 50 and the
denominator of which is the number of weeks in business during
the reporting period. new text begin For the purposes of section 115B.49, an
owner working 2,000 hours or more shall be considered as one
full-time equivalent.
new text end

Sec. 134.

Minnesota Statutes 2004, section 115D.04,
subdivision 3, is amended to read:

Subd. 3.

Administration.

(a) The pollution prevention
assistance program must be coordinated with other public and
private programs that provide management and technical
assistance to eligible recipients.

(b) The director may make grants to public or private
entities to operate elements of the program. Grantees shall
provide periodic reports on their efforts to assist eligible
recipients to reduce pollution.

new text begin (c) A person, when operating or participating in elements
of the technical assistance program pursuant to a grant or
contract with the office under this section or other law, is an
employee of the state, certified to be acting within the scope
of employment, for purposes of the indemnification provisions of
section 3.736, subdivision 9, for claims that arise out of the
information, assistance, and recommendations covered by the
grant or contract. The state is not obligated to defend or
indemnify a grantee or contractor under this subdivision to the
extent of the grantee's or contractor's liability insurance.
The grantee's or contractor's right to indemnity is not a waiver
of limitations, defenses, and immunities available to either the
grantee or contractor or the state by law.
new text end

Sec. 135.

Minnesota Statutes 2004, section 116P.05,
subdivision 2, is amended to read:

Subd. 2.

Duties.

(a) The commission shall recommend a
budget plan for expenditures from the environment and natural
resources trust fund and shall adopt a strategic plan as
provided in section 116P.08.

(b) The commission shall recommend expenditures to the
legislature from the state land and water conservation account
in the natural resources fund.

(c) It is a condition of acceptance of the appropriations
made from the Minnesota environment and natural resources trust
fund, and oil overcharge money under section 4.071, subdivision
2, that the agency or entity receiving the appropriation must
submit a work program and semiannual progress reports in the
form determined by the Legislative Commission on Minnesota
Resources new text begin , and comply with applicable reporting requirements
under section 116P.16 new text end . None of the money provided may be spent
unless the commission has approved the pertinent work program.

(d) The peer review panel created under section 116P.08
must also review, comment, and report to the commission on
research proposals applying for an appropriation from the oil
overcharge money under section 4.071, subdivision 2.

(e) The commission may adopt operating procedures to
fulfill its duties under chapter 116P.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for interests
in land acquired after June 30, 2005.
new text end

Sec. 136.

new text begin [116P.16] REAL PROPERTY INTEREST REPORT.
new text end

new text begin By December 1 each year, a recipient of an appropriation
from the trust fund, that is used for the acquisition of an
interest in real property, must submit annual reports on the
status of the real property to the Legislative Commission on
Minnesota Resources in a form determined by the commission. The
responsibility for reporting under this section may be
transferred by the recipient of the appropriation to another
person who holds the interest in the real property. To complete
the transfer of reporting responsibility, the recipient of the
appropriation must:
new text end

new text begin (1) inform the person to whom the responsibility is
transferred of that person's reporting responsibility;
new text end

new text begin (2) inform the person to whom the responsibility is
transferred of the property restrictions under section 116P.15;
and
new text end

new text begin (3) provide written notice to the commission of the
transfer of reporting responsibility, including contact
information for the person to whom the responsibility is
transferred.
new text end

new text begin After the transfer, the person who holds the interest in the
real property is responsible for reporting requirements under
this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for interests
in land acquired after June 30, 2005.
new text end

Sec. 137.

Minnesota Statutes 2004, section 160.232, is
amended to read:

160.232 MOWING DITCHES OUTSIDE CITIES.

(a) new text begin To provide enhanced roadside habitat for nesting birds
and other small wildlife, new text end road authorities may not mow or till
the right-of-way of a highway located outside of a home rule
charter or statutory city except as allowed in this section and
section 160.23.

(b) On any highway, the first eight feet away from the road
surface, or shoulder if one exists, may be mowed at any time.

(c) An entire right-of-way may be mowed after July 31.
From August 31 to the following July 31, the entire right-of-way
may only be mowed if necessary for safety reasons, deleted text begin and deleted text end new text begin but new text end may
not be mowed to a height of less than 12 inches.

(d) A right-of-way may be mowed as necessary to maintain
sight distance for safety and may be mowed at other times under
rules of the commissioner, or by ordinance of a local road
authority not conflicting with the rules of the commissioner.

(e) A right-of-way may be mowed, burned, or tilled to
prepare the right-of-way for the establishment of permanent
vegetative cover or for prairie vegetation management.

new text begin (f) When feasible, road authorities are encouraged to
utilize low maintenance, native vegetation that reduces the need
to mow, provides wildlife habitat, and maintains public safety.
new text end

new text begin (g) The commissioner of natural resources shall cooperate
with the commissioner of transportation to provide enhanced
roadside habitat for nesting birds and other small wildlife.
new text end

Sec. 138.

Minnesota Statutes 2004, section 168.1296,
subdivision 1, is amended to read:

Subdivision 1.

General requirements and procedures.

(a)
The registrar shall issue special critical habitat license
plates to an applicant who:

(1) is an owner or joint owner of a passenger automobile,
pickup truck, deleted text begin or deleted text end van new text begin , or recreational equipment new text end ;

(2) pays a fee of $10 to cover the costs of handling and
manufacturing the plates;

(3) pays the registration tax required under section
168.013;

(4) pays the fees required under this chapter;

(5) contributes a minimum of $30 annually to the Minnesota
critical habitat private sector matching account established in
section 84.943; and

(6) complies with laws and rules governing registration and
licensing of vehicles and drivers.

(b) The critical habitat license application form must
clearly indicate that the annual contribution specified under
paragraph (a), clause (5), is a minimum contribution to receive
the license plate and that the applicant may make an additional
contribution to the account.

new text begin (c) Owners of recreational equipment under paragraph (a),
clause (1), are eligible only for special critical habitat
license plates for which the designs are selected under
subdivision 2, on or after January 1, 2006.
new text end

new text begin (d) Special critical habitat license plates, the designs
for which are selected under subdivision 2, on or after January
1, 2006, may be personalized according to section 168.12,
subdivision 2a.
new text end

Sec. 139.

Minnesota Statutes 2004, section 169A.63,
subdivision 6, is amended to read:

Subd. 6.

Vehicle subject to forfeiture.

new text begin (a) new text end A motor
vehicle is subject to forfeiture under this section if it was
used in the commission of a designated offense or was used in
conduct resulting in a designated license revocation.

new text begin (b) Motorboats subject to seizure and forfeiture under this
section also include their trailers.
new text end

Sec. 140.

Minnesota Statutes 2004, section 216B.2424,
subdivision 1a, as added by Laws 2005, chapter 97, article 5,
section 2, is amended to read:

Subd. 1a.

Municipal waste-to-energy project.

(a) This
subdivision applies only to a biomass project owned or
controlled, directly or indirectly, by two municipal utilities
as described in subdivision 5a, paragraph (b).

(b) Woody biomass from state-owned land must be harvested
in compliance with an adopted management plan and a program of
ecologically based third-party certification.

(c) The project must prepare a fuel plan on an annual basis
after commercial operation of the project as described in the
power contract between the project and the public utility, and
must also prepare annually certificates reflecting the types of
fuel used in the preceding year by the project, as described in
the power contract. The fuel plans and certificates shall also
be filed with the Minnesota Department of Natural Resources and
the Minnesota Department of Commerce within 30 days after being
provided to the public utility, as provided by the power
contract. Any person who believes the fuel plans, as amended,
and certificates show that the project does not or will not
comply with the fuel requirements of this subdivision may file a
petition with the commission seeking such a determination.

(d) The wood procurement process must utilize third-party
audit certification systems to verify that applicable best
management practices were utilized in the procurement of the
sustainably managed biomass. If there is a failure to so verify
in any two consecutive years during the original contract term,
the farm-grown closed-loop biomass requirements of subdivision 2
must be increased to 50 percent for the remaining contract term
period; however, if in two consecutive subsequent years after
the increase has been implemented, it is verified that the
conditions in this subdivision have been met, then for the
remaining original contract term the closed-loop biomass mandate
reverts to 25 percent. If there is a subsequent failure to
verify in a year after the first failure and implementation of
the 50 percent requirement, then the closed-loop percentage
shall remain at 50 percent for each remaining year of the
contract term.

(e) In the closed-loop plantation, no transgenic plants may
be used.

(f) No wood may be harvested from any lands identified by
the final or preliminary Minnesota County Biological Survey as
having statewide significance as native plant communities, large
populations or concentrations of rare species, or critical
animal habitat.

(g) A wood procurement plan must be prepared every five
years and public meetings must be held and written comments
taken on the plan and documentation must be provided on why or
why not the public inputs were used.

(h) Guidelines or best management practices for sustainably
managed woody biomass must be adopted by:

(1) the Minnesota Department of Natural Resources for
managing and maintaining brushland and open land habitat on
public and private lands, including, but not limited to,
provisions of sections 84.941, 84.942, and 97A.125; and

(2) the Minnesota Forest Resources Council for logging
slash, using the most recent available scientific information
regarding the removal of woody biomass from forest lands, to
sustain the management of forest resources as defined by section
89.001, subdivisions 8 and 9, with particular attention to soil
productivity, biological diversity as defined by section 89A.01,
subdivision 3, and wildlife habitat.

These guidelines must be completed by July 1, 2007, and the
process of developing them must incorporate public notification
and comment.

(i) The University of Minnesota Initiative for Renewable
Energy and the Environment is encouraged to solicit and fund
high-quality research projects to develop and consolidate
scientific information regarding the removal of woody biomass
from forest and brush lands, with particular attention to the
environmental impacts on soil productivity, biological
diversity, and sequestration of carbon. The results of this
research shall be made available to the public.

(j) The two utilities owning or controlling, directly or
indirectly, the biomass project described in subdivision 5a,
paragraph (b), shall fund or obtain funding from nonstate
sources of up to $150,000 new text begin by April 1, 2006, new text end to complete the
guidelines or best management practices described in paragraph
(h). The expenditures to be funded under this paragraph do not
include any of the expenditures to be funded under paragraph (i).

Sec. 141.

Minnesota Statutes 2004, section 282.04,
subdivision 1, is amended to read:

Subdivision 1.

Timber sales; land leases and uses.

(a)
The county auditor may sell timber upon any tract that may be
approved by the natural resources commissioner. The sale of
timber shall be made for cash at not less than the appraised
value determined by the county board to the highest bidder after
not less than one week's published notice in an official paper
within the county. Any timber offered at the public sale and
not sold may thereafter be sold at private sale by the county
auditor at not less than the appraised value thereof, until the
time as the county board may withdraw the timber from sale. The
appraised value of the timber and the forestry practices to be
followed in the cutting of said timber shall be approved by the
commissioner of natural resources.

(b) Payment of the full sale price of all timber sold on
tax-forfeited lands shall be made in cash at the time of the
timber sale, except in the case of oral or sealed bid auction
sales, the down payment shall be no less than 15 percent of the
appraised value, and the balance shall be paid prior to entry.
In the case of auction sales that are partitioned and sold as a
single sale with predetermined cutting blocks, the down payment
shall be no less than 15 percent of the appraised price of the
entire timber sale which may be held until the satisfactory
completion of the sale or applied in whole or in part to the
final cutting block. The value of each separate block must be
paid in full before any cutting may begin in that block. With
the permission of the county contract administrator the
purchaser may enter unpaid blocks and cut necessary timber
incidental to developing logging roads as may be needed to log
other blocks provided that no timber may be removed from an
unpaid block until separately scaled and paid for. If payment
is provided as specified in this paragraph as security under
paragraph (a) and no cutting has taken place on the contract,
the county auditor may credit the security provided, less any
down payment required for an auction sale under this paragraph,
to any other contract issued to the contract holder by the
county under this chapter to which the contract holder requests
in writing that it be credited, provided the request and
transfer is made within the same calendar year as the security
was received.

(c) The county board may require final settlement on the
basis of a scale of cut products. Any parcels of land from
which timber is to be sold by scale of cut products shall be so
designated in the published notice of sale under paragraph (a),
in which case the notice shall contain a description of the
parcels, a statement of the estimated quantity of each species
of timber, and the appraised price of each species of timber for
1,000 feet, per cord or per piece, as the case may be. In those
cases any bids offered over and above the appraised prices shall
be by percentage, the percent bid to be added to the appraised
price of each of the different species of timber advertised on
the land. The purchaser of timber from the parcels shall pay in
cash at the time of sale at the rate bid for all of the timber
shown in the notice of sale as estimated to be standing on the
land, and in addition shall pay at the same rate for any
additional amounts which the final scale shows to have been cut
or was available for cutting on the land at the time of sale
under the terms of the sale. Where the final scale of cut
products shows that less timber was cut or was available for
cutting under terms of the sale than was originally paid for,
the excess payment shall be refunded from the forfeited tax sale
fund upon the claim of the purchaser, to be audited and allowed
by the county board as in case of other claims against the
county. No timber, except hardwood pulpwood, may be removed
from the parcels of land or other designated landings until
scaled by a person or persons designated by the county board and
approved by the commissioner of natural resources. Landings
other than the parcel of land from which timber is cut may be
designated for scaling by the county board by written agreement
with the purchaser of the timber. The county board may, by
written agreement with the purchaser and with a consumer
designated by the purchaser when the timber is sold by the
county auditor, and with the approval of the commissioner of
natural resources, accept the consumer's scale of cut products
delivered at the consumer's landing. No timber shall be removed
until fully paid for in cash. Small amounts of timber not
exceeding $3,000 in appraised valuation may be sold for not less
than the full appraised value at private sale to individual
persons without first publishing notice of sale or calling for
bids, provided that in case of a sale involving a total
appraised value of more than $200 the sale shall be made subject
to final settlement on the basis of a scale of cut products in
the manner above provided and not more than two of the sales,
directly or indirectly to any individual shall be in effect at
one time.

(d) As directed by the county board, the county auditor may
lease tax-forfeited land to individuals, corporations or
organized subdivisions of the state at public or private sale,
and at the prices and under the terms as the county board may
prescribe, for use as cottage and camp sites and for
agricultural purposes and for the purpose of taking and removing
of hay, stumpage, sand, gravel, clay, rock, marl, and black dirt
from the land, and for garden sites and other temporary uses
provided that no leases shall be for a period to exceed ten
years; provided, further that any leases involving a
consideration of more than $12,000 per year, except to an
organized subdivision of the state shall first be offered at
public sale in the manner provided herein for sale of timber.
Upon the sale of any leased land, it shall remain subject to the
lease for not to exceed one year from the beginning of the term
of the lease. Any rent paid by the lessee for the portion of
the term cut off by the cancellation shall be refunded from the
forfeited tax sale fund upon the claim of the lessee, to be
audited and allowed by the county board as in case of other
claims against the county.

(e) As directed by the county board, the county auditor may
lease tax-forfeited land to individuals, corporations, or
organized subdivisions of the state at public or private sale,
at the prices and under the terms as the county board may
prescribe, for the purpose of taking and removing for use for
road construction and other purposes tax-forfeited stockpiled
iron-bearing material. The county auditor must determine that
the material is needed and suitable for use in the construction
or maintenance of a road, tailings basin, settling basin, dike,
dam, bank fill, or other works on public or private property,
and that the use would be in the best interests of the public.
No lease shall exceed ten years. The use of a stockpile for
these purposes must first be approved by the commissioner of
natural resources. The request shall be deemed approved unless
the requesting county is notified to the contrary by the
commissioner of natural resources within six months after
receipt of a request for approval for use of a stockpile. Once
use of a stockpile has been approved, the county may continue to
lease it for these purposes until approval is withdrawn by the
commissioner of natural resources.

(f) The county auditor, with the approval of the county
board is authorized to grant permits, licenses, and leases to
tax-forfeited lands for the depositing of stripping, lean ores,
tailings, or waste products from mines or ore milling plants,
upon the conditions and for the consideration and for the period
of time, not exceeding 15 years, as the county board may
determine. The permits, licenses, or leases are subject to
approval by the commissioner of natural resources.

(g) Any person who removes any timber from tax-forfeited
land before said timber has been scaled and fully paid for as
provided in this subdivision is guilty of a misdemeanor.

(h) The county auditor may, with the approval of the county
board, and without first offering at public sale, grant leases,
for a term not exceeding 25 years, for the removal of peat new text begin and
for the production or removal of farm-grown closed-loop biomass
as defined in section 216B.2424, subdivision 1, or
short-rotation woody crops new text end from tax-forfeited lands upon the
terms and conditions as the county board may prescribe. Any
lease for the removal of peat new text begin , farm-grown closed-loop biomass,
or short-rotation woody crops new text end from tax-forfeited lands must
first be reviewed and approved by the commissioner of natural
resources if the lease covers 320 or more acres. No lease for
the removal of peat new text begin , farm-grown closed-loop biomass, or
short-rotation woody crops new text end shall be made by the county auditor
pursuant to this section without first holding a public hearing
on the auditor's intention to lease. One printed notice in a
legal newspaper in the county at least ten days before the
hearing, and posted notice in the courthouse at least 20 days
before the hearing shall be given of the hearing.

(i) Notwithstanding any provision of paragraph (c) to the
contrary, the St. Louis County auditor may, at the discretion of
the county board, sell timber to the party who bids the highest
price for all the several kinds of timber, as provided for sales
by the commissioner of natural resources under section 90.14.
Bids offered over and above the appraised price need not be
applied proportionately to the appraised price of each of the
different species of timber.

(j) In lieu of any payment or deposit required in paragraph
(b), as directed by the county board and under terms set by the
county board, the county auditor may accept an irrevocable bank
letter of credit in the amount equal to the amount otherwise
determined in paragraph (b), exclusive of the down payment
required for an auction sale in paragraph (b). If an
irrevocable bank letter of credit is provided under this
paragraph, at the written request of the purchaser, the county
may periodically allow the bank letter of credit to be reduced
by an amount proportionate to the value of timber that has been
harvested and for which the county has received payment. The
remaining amount of the bank letter of credit after a reduction
under this paragraph must not be less than 20 percent of the
value of the timber purchased. If no cutting of timber has
taken place on the contract for which a letter of credit has
been provided, the county may allow the transfer of the letter
of credit to any other contract issued to the contract holder by
the county under this chapter to which the contract holder
requests in writing that it be credited.

Sec. 142.

Minnesota Statutes 2004, section 282.08, as
amended by Laws 2005, chapter 151, article 5, section 32, is
amended to read:

282.08 [APPORTIONMENT OF PROCEEDS TO TAXING DISTRICTS.]

The net proceeds from the sale or rental of any parcel of
forfeited land, or from the sale of products from the forfeited
land, must be apportioned by the county auditor to the taxing
districts interested in the land, as follows:

(1) the portion required to pay any amounts included in the
appraised value under section 282.01, subdivision 3, as
representing increased value due to any public improvement made
after forfeiture of the parcel to the state, but not exceeding
the amount certified by the clerk of the municipality must be
apportioned to the municipal subdivision entitled to it;

(2) the portion required to pay any amount included in the
appraised value under section 282.019, subdivision 5,
representing increased value due to response actions taken after
forfeiture of the parcel to the state, but not exceeding the
amount of expenses certified by the Pollution Control Agency or
the commissioner of agriculture, must be apportioned to the
agency or the commissioner of agriculture and deposited in the
fund from which the expenses were paid;

(3) the portion of the remainder required to discharge any
special assessment chargeable against the parcel for drainage or
other purpose whether due or deferred at the time of forfeiture,
must be apportioned to the municipal subdivision entitled to it;
and

(4) any balance must be apportioned as follows:

(i) The county board may annually by resolution set aside
no more than 30 percent of the receipts remaining to be used for
deleted text begin timber deleted text end new text begin forest new text end development on tax-forfeited land and dedicated
memorial forests, to be expended under the supervision of the
county board. It must be expended only on projects deleted text begin approved by
the commissioner of natural resources deleted text end new text begin improving the health and
management of the forest resource new text end .

(ii) The county board may annually by resolution set aside
no more than 20 percent of the receipts remaining to be used for
the acquisition and maintenance of county parks or recreational
areas as defined in sections 398.31 to 398.36, to be expended
under the supervision of the county board.

(iii) Any balance remaining must be apportioned as
follows: county, 40 percent; town or city, 20 percent; and
school district, 40 percent, provided, however, that in
unorganized territory that portion which would have accrued to
the township must be administered by the county board of
commissioners.

Sec. 143.

Minnesota Statutes 2004, section 282.38,
subdivision 1, is amended to read:

Subdivision 1.

Development.

In any county where the
county board by proper resolution sets aside funds for deleted text begin timber
deleted text end new text begin forest new text end development pursuant to section 282.08,
clause deleted text begin (3)(a) deleted text end new text begin (5), item (i) new text end , or section 459.06, subdivision 2,
the deleted text begin Commission deleted text end new text begin commissioner new text end of Iron Range resources new text begin and
rehabilitation with the approval of the board new text end may upon request
of the county board assist said county in carrying out any
project for the long range development of its deleted text begin timber deleted text end new text begin forest
new text end resources through matching of funds or otherwise deleted text begin , provided that
any such project shall first be approved by the commissioner of
natural resources deleted text end .

Sec. 144.

Minnesota Statutes 2004, section 296A.18,
subdivision 2, is amended to read:

Subd. 2.

Motorboat.

Approximately 1-1/2 percent of all
gasoline received in this state and 1-1/2 percent of all
gasoline produced or brought into this state, except gasoline
used for aviation purposes, is being used as fuel for the
operation of motorboats on the waters of this state and of the
total revenue derived from the imposition of the gasoline fuel
tax for uses other than for aviation purposes, 1-1/2 percent of
deleted text begin such revenues deleted text end new text begin the revenue new text end is the amount of tax on fuel used in
motorboats operated on the waters of this state. The amount of
unrefunded tax paid on gasoline used for motor boat purposes as
computed in this chapter shall be paid into the state treasury
and credited to a water recreation account in the special
revenue fund for acquisition, development, maintenance, and
rehabilitation of sites for public access and boating facilities
on public waters; lake and river improvement; deleted text begin state park
development; deleted text end and boat and water safety.

Sec. 145.

Minnesota Statutes 2004, section 297H.13,
subdivision 2, is amended to read:

Subd. 2.

Allocation of revenues.

(a)
deleted text begin $22,000,000 deleted text end new text begin $33,760,000 new text end , or deleted text begin 50 deleted text end new text begin 70 new text end percent, whichever is greater,
of the amounts remitted under this chapter must be credited to
the environmental fund established in section 16A.531,
subdivision 1.

(b) The remainder must be deposited into the general fund.

Sec. 146.

Minnesota Statutes 2004, section 462.357,
subdivision 1e, is amended to read:

Subd. 1e.

Nonconformities.

new text begin (a) new text end Any nonconformity,
including the lawful use or occupation of land or premises
existing at the time of the adoption of an additional control
under this chapter, may be continued, including through repair,
replacement, restoration, maintenance, or improvement, but not
including expansion, unless:

(1) the nonconformity or occupancy is discontinued for a
period of more than one year; or

(2) any nonconforming use is destroyed by fire or other
peril to the extent of greater than 50 percent of its market
value, and no building permit has been applied for within 180
days of when the property is damaged. In this case, a
municipality may impose reasonable conditions upon a building
permit in order to mitigate any newly created impact on adjacent
property.

new text begin (b) new text end Any subsequent use or occupancy of the land or premises
shall be a conforming use or occupancy. A municipality may, by
ordinance, permit an expansion or impose upon nonconformities
reasonable regulations to prevent and abate nuisances and to
protect the public health, welfare, or safety. This subdivision
does not prohibit a municipality from enforcing an ordinance
that applies to adults-only bookstores, adults-only theaters, or
similar adults-only businesses, as defined by ordinance.

new text begin (c) Notwithstanding paragraph (a), a municipality shall
regulate the repair, replacement, maintenance, improvement, or
expansion of nonconforming uses and structures in floodplain
areas to the extent necessary to maintain eligibility in the
National Flood Insurance Program and not increase flood damage
potential or increase the degree of obstruction to flood flows
in the floodway.
new text end

Sec. 147.

new text begin [473.1565] METROPOLITAN AREA WATER SUPPLY
PLANNING ACTIVITIES; ADVISORY COMMITTEE.
new text end

new text begin Subdivision 1. new text end

new text begin Planning activities. new text end

new text begin (a) The Metropolitan
Council must carry out planning activities addressing the water
supply needs of the metropolitan area as defined in section
473.121, subdivision 2. The planning activities must include,
at a minimum:
new text end

new text begin (1) development and maintenance of a base of technical
information needed for sound water supply decisions including
surface and groundwater availability analyses, water demand
projections, water withdrawal and use impact analyses, modeling,
and similar studies;
new text end

new text begin (2) development and periodic update of a metropolitan area
master water supply plan that:
new text end

new text begin (i) provides guidance for local water supply systems and
future regional investments;
new text end

new text begin (ii) emphasizes conservation, interjurisdictional
cooperation, and long-term sustainability; and
new text end

new text begin (iii) addresses the reliability, security, and
cost-effectiveness of the metropolitan area water supply system
and its local and subregional components;
new text end

new text begin (3) recommendations for clarifying the appropriate roles
and responsibilities of local, regional, and state government in
metropolitan area water supply;
new text end

new text begin (4) recommendations for streamlining and consolidating
metropolitan area water supply decision-making and approval
processes; and
new text end

new text begin (5) recommendations for the ongoing and long-term funding
of metropolitan area water supply planning activities and
capital investments.
new text end

new text begin (b) The council must carry out the planning activities in
this subdivision in consultation with the metropolitan area
water supply advisory committee established in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Advisory committee. new text end

new text begin (a) A metropolitan area
water supply advisory committee is established to assist the
council in its planning activities in subdivision 1. The
advisory committee has the following membership:
new text end

new text begin (1) the commissioner of agriculture or the commissioner's
designee;
new text end

new text begin (2) the commissioner of health or the commissioner's
designee;
new text end

new text begin (3) the commissioner of natural resources or the
commissioner's designee;
new text end

new text begin (4) the commissioner of the pollution control agency or the
commissioner's designee;
new text end

new text begin (5) two officials of counties that are located in the
metropolitan area, appointed by the governor;
new text end

new text begin (6) five officials of noncounty local governmental units
that are located in the metropolitan area, appointed by the
governor; and
new text end

new text begin (7) the chair of the Metropolitan Council or the chair's
designee, who is chair of the advisory committee.
new text end

new text begin A local government unit in each of the seven counties in
the metropolitan area must be represented in the seven
appointments made under clauses (5) and (6).
new text end

new text begin (b) Members of the advisory committee appointed by the
governor serve at the pleasure of the governor. Members of the
advisory committee serve without compensation but may be
reimbursed for their reasonable expenses as determined by the
Metropolitan Council. The advisory committee expires December
31, 2008.
new text end

new text begin (c) The council must consider the work and recommendations
of the advisory committee when the council is preparing its
regional development framework.
new text end

new text begin Subd. 3. new text end

new text begin Reports to legislature. new text end

new text begin The council must submit
reports to the legislature regarding its findings,
recommendations, and continuing planning activities under
subdivision 1. The first report must be submitted to the
legislature by the date the legislature convenes in 2007 and
subsequent reports must be submitted by such date every five
years thereafter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment and applies in the counties of Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 148.

Minnesota Statutes 2004, section 473.197,
subdivision 4, is amended to read:

Subd. 4.

Debt reserve; levy.

To provide money to pay
debt service on bonds issued under the credit enhancement
program deleted text begin if pledged revenues are insufficient to pay debt service
deleted text end new text begin in repealed subdivision 1 of Minnesota Statutes 2004, section
473.197 new text end , the council must maintain a debt reserve fund deleted text begin in the
manner and with the effect provided by section 118A.04 for
public funds deleted text end new text begin until the reserve is no longer pledged or otherwise
needed to pay debt service on such bonds new text end . deleted text begin To provide funds for
the debt reserve fund, the council may use up to $3,000,000 of
the proceeds of solid waste bonds issued by the council under
section 473.831 before its repeal. To provide additional funds
for the debt reserve fund, the council may levy a tax on all
taxable property in the metropolitan area and must levy the tax
deleted text end If sums in the debt reserve fund are insufficient to cure any
deficiency in the debt service fund established for the bonds new text begin ,
the council must levy a tax on all taxable property in the
metropolitan area in the amount needed to liquidate the
deficiency new text end . The tax authorized by this section does not affect
the amount or rate of taxes that may be levied by the council
for other purposes and is not subject to limit as to rate or
amount.

new text begin EFFECTIVE DATE. new text end

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

Sec. 149.

Laws 1998, chapter 389, article 16, section 31,
subdivision 4, as amended by Laws 1999, chapter 180, section 3,
and Laws 2001, chapter 164, section 5, is amended to read:

Subd. 4.

County environmental trust fund.

Notwithstanding the provisions of Minnesota Statutes, chapter
282, and any other law relating to the apportionment of proceeds
from the sale of tax-forfeited land, and except as otherwise
provided in this section, a county board must deposit the money
received from the sale of land under subdivision 3 into an
environmental trust fund established by the county under this
subdivision. new text begin The county board may: (1) deposit part or all of
the environmental trust fund money as provided in Minnesota
Statutes, chapter 118A; or (2) enter into an agreement with the
State Board of Investment to invest all or part of the money in
investments under Minnesota Statutes, section 11A.24,
subdivisions 1 to 5, on behalf of the county. new text end The following may
be withheld by a county board and are not required to be
deposited into an environmental trust fund: the costs of
appraisal, abstracts, and surveys; money received from a sale
which is attributable to land owned by a county in fee; amounts
paid to lessees for improvements; amounts paid to acquire land
which is included in a county plan for exchange and is conveyed
to the state in the exchange, including the purchase price,
appraisal, abstract, survey, and closing costs; and the costs of
sale to lessees or other parties, including the costs of
advertising, realtors, and closing services. If the proceeds
from the sale of tax-forfeited land in a county deleted text begin is deleted text end new text begin are new text end $250,000
or more, the deleted text begin principal from the sale of the land may not be
expended, deleted text end new text begin amount the county may spend from the fund each
calendar year may not exceed 5-1/2 percent of the market value
of the fund on January 1 of the preceding calendar year, new text end and the
county board may spend deleted text begin interest earned on the principal deleted text end new text begin money
from the fund new text end only for purposes related to the improvement of
natural resources. To the extent money received from the sale
is attributable to tax-forfeited land from another county, the
money must be deposited in an environmental trust fund
established under this section by that county board.

new text begin EFFECTIVE DATE. new text end

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

Sec. 150.

Laws 2003, chapter 128, article 1, section 9,
subdivision 6, is amended to read:

Subd. 6.

Recreation 7,622,000 5,870,000

Summary by Fund

Trust Fund 5,622,000 5,870,000

State Land and Conservation
Account (LAWCON) 2,000,000

(a) State Park and Recreation Area Land
Acquisition

$750,000 the first year and $750,000
the second year are from the trust fund
to the commissioner of natural
resources to acquire in-holdings for
state park and recreation areas. Land
acquired with this appropriation must
be sufficiently improved to meet at
least minimum management standards as
determined by the commissioner of
natural resources. This appropriation
is available until June 30, 2006, at
which time the project must be
completed and final products delivered,
unless an earlier date is specified in
the work program.

(b) LAWCON Federal Reimbursements

$2,000,000 is from the state land and
water conservation account (LAWCON) in
the natural resources fund to the
commissioner of natural resources for
eligible state projects and
administrative and planning activities
consistent with Minnesota Statutes,
section 116P.14, and the federal Land
and Water Conservation Fund Act. This
appropriation is contingent upon
receipt of the federal obligation and
remains available until June 30, 2006,
at which time the project must be
completed and final products delivered,
unless an earlier date is specified in
the work program.

(c) Local Initiative Grants-Parks and
Natural Areas

$1,290,000 the first year and
$1,289,000 the second year are from the
trust fund to the commissioner of
natural resources for matching grants
to local governments for acquisition
and development of natural and scenic
areas and local parks as provided in
Minnesota Statutes, section 85.019,
subdivisions 2 and 4a, and regional
parks outside of the metropolitan
area. Grants may provide up to 50
percent of the nonfederal share of the
project cost, except nonmetropolitan
regional park grants may provide up to
60 percent of the nonfederal share of
the project cost. The commission will
monitor the grants for approximate
balance over extended periods of time
between the metropolitan area, under
Minnesota Statutes, section 473.121,
subdivision 2, and the nonmetropolitan
area through work program oversight and
periodic allocation decisions. For the
purposes of this paragraph, the match
must be a nonstate contribution, but
may be either cash or qualifying
in-kind. Recipients may receive
funding for more than one project in
any given grant period. This
appropriation is available until June
30, 2006, at which time the project
must be completed and final products
delivered.

(d) Metropolitan Regional Parks
Acquisition, Rehabilitation, and
Development

$1,670,000 the first year and
$1,669,000 the second year are from the
trust fund to the commissioner of
natural resources for an agreement with
the metropolitan council for subgrants
for the acquisition, development, and
rehabilitation in the metropolitan
regional park system, consistent with
the metropolitan council regional
recreation open space capital
improvement plan. This appropriation
may not be used for the purchase of
residential structures. This
appropriation may be used to reimburse
implementing agencies for acquisition
of nonresidential property as expressly
approved in the work program. This
appropriation is available until June
30, 2006, at which time the project
must be completed and final products
delivered, unless an earlier date is
specified in the work program. In
addition, if a project financed under
this program receives a federal grant,
the availability of the financing from
this paragraph for that project is
extended to equal the period of the
federal grant.

(e) Local and Regional Trail Grant
Initiative Program

$160,000 the first year and $160,000
the second year are from the trust fund
to the commissioner of natural
resources to provide matching grants to
local units of government for the cost
of acquisition, development,
engineering services, and enhancement
of existing and new trail facilities.
This appropriation is available until
June 30, 2006, at which time the
project must be completed and final
products delivered, unless an earlier
date is specified in the work program.
In addition, if a project financed
under this program receives a federal
grant, the availability of the
financing from this paragraph for that
project is extended to equal the period
of the federal grant.

(f) Gitchi-Gami State Trail

$650,000 the first year and $650,000
the second year are from the trust fund
to the commissioner of natural
resources, in cooperation with the
Gitchi-Gami Trail Association, for the
third biennium, to design and construct
approximately five miles of Gitchi-Gami
state trail segments. This
appropriation must be matched by at
least $400,000 of nonstate money. The
availability of the financing from this
paragraph is extended to equal the
period of any federal money received.

(g) Water Recreation: Boat Access,
Fishing Piers, and Shore-fishing

$450,000 the first year and $700,000
the second year are from the trust fund
to the commissioner of natural
resources to acquire and develop public
water access sites statewide, construct
shore-fishing and pier sites, and
restore shorelands at public accesses.
This appropriation is available until
June 30, 2006, at which time the
project must be completed and final
products delivered, unless an earlier
date is specified in the work program.

(h) Mesabi Trail

$190,000 the first year and $190,000
the second year are from the trust fund
to the commissioner of natural
resources for an agreement with St.
Louis and Lake Counties Regional Rail
Authority for the sixth biennium to
acquire and develop segments of the
Mesabi trail. If a federal grant is
received, the availability of the
financing from this paragraph is
extended to equal the period of the
federal grant.

(i) Linking Communities Design,
Technology, and DNR Trail Resources

$92,000 the first year and $92,000 the
second year are from the trust fund to
the commissioner of natural resources
for an agreement with the University of
Minnesota to provide designs for up to
three state trails incorporating
recreation, natural, and cultural
features.

(j) Ft. Ridgley Historic Site
Interpretive Trail

$75,000 the first year and $75,000 the
second year are from the trust fund to
the Minnesota historical society to
construct a trail through the original
fort site and install interpretive
markers. This appropriation is
available until June 30, 2006, at which
time the project must be completed and
final products delivered, unless an
earlier date is specified in the work
program.

(k) Development and Rehabilitation of
Minnesota Shooting Ranges

$120,000 the first year and $120,000
the second year are from the trust fund
to the commissioner of natural
resources to provide technical
assistance and matching cost-share
grants to local recreational shooting
and archery clubs for the purpose of
developing or rehabilitating shooting
and archery facilities for public use.
Recipient facilities must be open to
the general public at reasonable times
and for a reasonable fee on a walk-in
basis. This appropriation is available
until June 30, 2006, at which time the
project must be completed and final
products delivered, unless an earlier
date is specified in the work program.

(l) Land Acquisition, Minnesota
Landscape Arboretum

$175,000 the first year and $175,000
the second year are from the trust fund
to the University of Minnesota for an
agreement with the University of
Minnesota Landscape Arboretum
Foundation for the fifth biennium to
acquire deleted text begin in-holdings within the
arboretum's boundary deleted text end new text begin land from willing
sellers new text end . This appropriation must be
matched by an equal amount of nonstate
money. This appropriation is available
until June 30, 2006, at which time the
project must be completed and final
products delivered, unless an earlier
date is specified in the work program.

Sec. 151.

Laws 2003, chapter 128, article 1, section 156,
is amended to read:

Sec. 156. new text begin WATER QUALITY ASSESSMENT PROCESS.
new text end

Subdivision 1.

Rulemaking.

(a) By deleted text begin January deleted text end new text begin October new text end 1,
2006, the pollution control agency shall adopt rules under
Minnesota Statutes, chapter 14, relating to water quality
assessment for the waters of the state. The adopted rules must,
at a minimum, satisfy paragraphs (b) to (h).

(b) The rules must apply to the determination of impaired
waters as required by Section 303(d) of the Clean Water Act of
1977, United States Code, title 33, chapter 26, section 1313(d).

(c) The rules must define the terms "altered materially,"
"material increase," "material manner," "seriously impaired,"
and "significant increase," contained in Minnesota Rules, part
7050.0150, subpart 3.

(d) The rules must define the terms "normal fishery" and
"normally present," contained in Minnesota Rules, part
7050.0150, subpart 3.

(e) The rules must specify that for purposes of the
determination of impaired waters, the agency will make an
impairment determination based only on pollution of waters of
the state that has resulted in degradation of the physical,
chemical, or biological qualities of the water body to the
extent that attainable or previously existing beneficial uses
are actually or potentially lost.

(f) The rules must provide that when a person presents
information adequately demonstrating that a beneficial use for
the water body does not exist and is not attainable due to the
natural condition of the water body, the agency shall initiate
an administrative process for reclassification of the water to
remove the beneficial use.

(g) The rules must provide that the agency, in considering
impairment due to nutrients and application of nutrient
objectives and effluent limitations related to riverine systems
or riverine impoundments, must consider temperature and
detention time effects on algal populations when the discharge
of nutrients is expected to cause or contribute to algal growth
that impairs existing or attainable uses.

(h) The agency shall apply Minnesota Rules, part 7050.0150,
consistent with paragraphs (e) and (g).

Subd. 2.

Report to legislature.

By February 1, 2004, and
by February 1, 2005, the commissioner shall report to the
environment and natural resources finance committees of the
house and senate on the status of discussions with stakeholders
and the development of the rules required under subdivision 1.

new text begin Subd. 3. new text end

new text begin Time limit. new text end

new text begin Notwithstanding the time limit in
Minnesota Statutes, section 14.125, the authority of the
commissioner to publish a notice of intent to adopt rules and
adopt rules is revived.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 152.

Laws 2003, chapter 128, article 1, section 167,
subdivision 1, is amended to read:

Sec. 167. new text begin FOREST LAND OFF-HIGHWAY VEHICLE USE
RECLASSIFICATION.
new text end

Subdivision 1.

Forest classification status review.

(a)
By December 31, 2006, the commissioner of natural resources
shall complete a review of the forest classification status of
all state forests classified as managed new text begin or limited new text end , all forest
lands under the authority of the commissioner as defined in
Minnesota Statutes, section 89.001, subdivision 13, and lands
managed by the commissioner under Minnesota Statutes, section
282.011. The review must be conducted on a forest-by-forest and
area-by-area basis in accordance with the process and criteria
under Minnesota Rules, part 6100.1950. new text begin Except as provided in
paragraph (d), new text end after each forest is reviewed, the commissioner
must change its status to limited or closed, and must provide a
similar status for each of the other areas subject to review
under this section after each individual review is completed.

(b) If the commissioner determines on January 1, 2005, that
the review required under this section cannot be completed by
December 31, 2006, the completion date for the review shall be
extended to December 31, 2008. By January 15, 2005, the
commissioner shall report to the chairs of the legislative
committees with jurisdiction over natural resources policy and
finance regarding the status of the process required by this
section.

(c) Until December 31, 2010, the state forests and areas
subject to review under this section are exempt from Minnesota
Statutes, section 84.777, unless an individual forest or area
has been classified as limited or closed.

new text begin (d) Notwithstanding the restrictions in paragraph (a), and
Minnesota Statutes, section 84.777, all forest lands under the
authority of the commissioner as defined in Minnesota Statutes,
section 89.001, subdivision 13, and lands managed by the
commissioner under Minnesota Statutes, section 282.011, that are
north of U.S. Highway 2 shall maintain their present
classification unless the commissioner reclassifies the lands
under Minnesota Rules, part 6100.1950. The commissioner shall
provide for seasonal trail closures when conditions warrant
them. By December 31, 2008, the commissioner shall complete the
review and designate trails on forest lands north of Highway 2
as provided in this section.
new text end

Sec. 153. new text begin REQUIRED RULEMAKING.
new text end

new text begin (a) The commissioner of natural resources shall amend
Minnesota Rules, part 6232.0300, subpart 7, to permit an
individual to operate an all-terrain vehicle on privately owned
land in an area open to taking deer by firearms during the legal
shooting hours of the deer season, regardless of whether the
individual is licensed to take deer on the day of operation, if
the individual is:
new text end

new text begin (1) pursuing an occupation when operating the all-terrain
vehicle;
new text end

new text begin (2) not in possession of a firearm; and
new text end

new text begin (3) the owner of the land on which the all-terrain vehicle
is operated, an employee of the land owner, or an immediate
family member of the land owner.
new text end

new text begin (b) The commissioner may use the good cause exemption under
Minnesota Statutes, section 14.388, subdivision 1, clause (3),
in amending the rule under paragraph (a). Minnesota Statutes,
section 14.386, does not apply, except to the extent provided
under Minnesota Statutes, section 14.388.
new text end

Sec. 154. new text begin DISPOSITION OF MINERAL PAYMENTS; FISCAL YEARS
2006 AND 2007.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 93.22,
subdivision 1, in fiscal years 2006 and 2007, all payments under
Minnesota Statutes, sections 93.14 to 93.285, shall be made to
the Department of Natural Resources and shall be credited
according to this section.
new text end

new text begin (b) Twenty percent of all payments under Minnesota
Statutes, sections 93.14 to 93.285, shall be credited to the
minerals management account in the natural resources fund as
costs for the administration and management of state mineral
resources by the commissioner of natural resources.
new text end

new text begin (c) The remainder of the payments shall be credited as
follows:
new text end

new text begin (1) if the lands or minerals and mineral rights covered by
a lease are held by the state by virtue of an act of Congress,
payments made under the lease shall be credited to the permanent
fund of the class of land to which the leased premises belong;
new text end

new text begin (2) if a lease covers the bed of navigable waters, payments
made under the lease shall be credited to the permanent school
fund of the state;
new text end

new text begin (3) if the lands or minerals and mineral rights covered by
a lease are held by the state in trust for the taxing districts,
payments made under the lease shall be distributed annually on
the first day of September to the respective counties in which
the lands lie, to be apportioned among the taxing districts
interested therein as follows: county, three-ninths; town or
city, two-ninths; and school district, four-ninths;
new text end

new text begin (4) if the lands or mineral rights covered by a lease
became the absolute property of the state under the provisions
of Minnesota Statutes, chapter 84A, payments made under the
lease shall be distributed as follows: county containing the
land from which the income was derived, five-eighths; and
general fund of the state, three-eighths; and
new text end

new text begin (5) except as provided under this section and except where
the disposition of payments may be otherwise directed by law,
payments made under a lease shall be paid into the general fund
of the state.
new text end

Sec. 155. new text begin WASTE MANAGEMENT TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Creation; membership. new text end

new text begin A waste management
task force is created. The chairs of the house and senate
committees with primary jurisdiction over environmental policy
and environmental finance shall appoint members to the task
force. Five members shall be appointed from each legislative
body, including at least two each from the minority caucus. The
chairs of the house committees shall appoint the house co-chair
of the task force. The chairs of the senate committees shall
appoint the senate co-chair of the task force. The Legislative
Coordinating Commission shall provide administrative support to
the task force.
new text end

new text begin Subd. 2. new text end

new text begin Charge. new text end

new text begin (a) The waste management task force is
charged to examine the management of organic waste in
Minnesota. In developing its findings and recommendations, the
task force may consider the following issues:
new text end

new text begin (1) the need for a hierarchy for organic waste that
reflects the state's priorities for organic waste disposal;
new text end

new text begin (2) the economics of managing organic waste, and the role
of state-funded incentives;
new text end

new text begin (3) the current systems for transporting, processing, and
disposing of organic wastes; and
new text end

new text begin (4) how a state organic waste management system would fit
into the existing state and county solid waste management
systems.
new text end

new text begin (b) The waste management task force is charged to examine
alternative methods of establishing a statewide system for the
disposal of electronic waste. In developing its findings and
recommendations, the task force may consider the following
issues:
new text end

new text begin (1) approaches that place the burden of funding collection
and recycling of electronic waste on, respectively,
manufacturers, wholesalers, and consumers;
new text end

new text begin (2) approaches similar to the system used to recycle other
appliances.
new text end

new text begin (c) The waste management task force is charged to examine
prospects for expanding current landfills and siting new
landfills.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The task force shall report to the
house and senate committees with primary jurisdiction over
environmental policy and environmental finance any findings and
recommendations, including suggested legislation, by January 15,
2006.
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin The waste management task force
expires July 1, 2006.
new text end

Sec. 156. new text begin ENVIRONMENT AND NATURAL RESOURCES TRUST FUND;
ADVISORY TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) An advisory task force
to examine the process for making recommendations on
expenditures from the environment and natural resources trust
fund is created, consisting of:
new text end

new text begin (1) four former members of the current Legislative
Commission on Minnesota Resources from the house of
representatives, appointed by the executive committee of the
commission;
new text end

new text begin (2) four former members of the current Legislative
Commission on Minnesota Resources from the senate, appointed by
the executive committee of the commission; and
new text end

new text begin (3) eight public members who are not current or past
members of the Legislative Commission on Natural Resources or
the Citizens Advisory Council, established under Minnesota
Statutes, section 116P.06, but who have submitted trust fund
proposals for funding, appointed by the governor.
new text end

new text begin (b) The members of the task force shall select a chair who
shall preside and convene meetings of the task force. At least
two house members and two senate members appointed must be from
the minority caucus. Current legislative members of the task
force are entitled to reimbursement for per diem expenses plus
travel expenses incurred in the services of the task force.
Public members of the task force shall be compensated as
provided in Minnesota Statutes, section 15.0575.
new text end

new text begin (c) The task force shall examine the current process for
recommending appropriations from the environment and natural
resources trust fund and make recommendations for changes in the
process.
new text end

new text begin (d) By February 15, 2006, the task force shall report on
its recommendations to the governor and the legislative
committees and divisions with jurisdiction over environment and
natural resources policy and finance.
new text end

new text begin Subd. 2. new text end

new text begin Sunset. new text end

new text begin The duties of the Legislative
Commission on Minnesota Resources to recommend expenditures from
the environment and natural resources trust fund expire on June
30, 2006.
new text end

Sec. 157. new text begin CONTINUATION OF AGREEMENTS.
new text end

new text begin An agreement entered into between the Metropolitan Council
and a participant in the credit enhancement program under
Minnesota Statutes 2004, section 473.197, subdivision 5, with
respect to bonds issued prior to the effective date of this
section, shall continue in effect in accordance with its terms;
provided that no provision in such agreement shall be construed
to require or allow the council to pledge its full faith and
credit and taxing powers to the payment of additional bonds
issued after the effective date of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment and applies in the counties of Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 158. new text begin USE OF CREDIT ENHANCEMENT PROGRAM FUNDS.
new text end

new text begin The Metropolitan Council must transfer any funds
originating from the proceeds of solid waste bonds and available
for the credit enhancement program under Minnesota Statutes
2004, section 473.197, subdivision 4, to the council's general
fund to the extent such funds are no longer pledged or otherwise
needed by the council to maintain a debt reserve fund as
provided for in ongoing Minnesota Statutes, section 473.197,
subdivision 4. The council must first use the transferred funds
for carrying out the metropolitan area water supply planning
activities required by Minnesota Statutes, section 473.1565, for
staff support of the advisory committee established under that
section, and for related purposes. If the council determines
that the transferred funds are no longer needed for such
purposes, the council may use any such funds for any general
purposes of the council.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment and applies in the counties of Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 159. new text begin APPLICATION FOR DISABILITY BENEFITS.
new text end

new text begin Subdivision 1. new text end

new text begin Eligible person. new text end

new text begin For purposes of this
section, an eligible person is a person who was employed by the
Minnesota Department of Natural Resources as a photo lab
supervisor beginning in April 1977 and ending in June 1998.
new text end

new text begin Subd. 2. new text end

new text begin Application procedure. new text end

new text begin Notwithstanding any
contrary provision in Minnesota Statutes, section 352.113, or
any other law, an eligible person may file an application for
disability benefits from the Minnesota State Retirement System
within 60 days of the effective date of this section. Upon
filing of the application, the director must act on the
application as if it had been filed within 180 days of
termination of the person's employment with the Department of
Natural Resources. The director may approve the disability
benefit only if the eligible person establishes that the person
became disabled while still a state employee. If the director
approves the disability benefit, the benefit begins to accrue on
the date it is approved.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 160. new text begin PCA/OEA MERGER.
new text end

new text begin The responsibilities of the Office of Environmental
Assistance are transferred to the Pollution Control Agency under
Minnesota Statutes, section 15.039. In addition to the
provisions of Minnesota Statutes, section 15.039, no employee in
the classified service shall suffer job loss, have a salary
reduced, or have employment benefits reduced as a result of the
reorganization in this article.
new text end

Sec. 161. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin Except as otherwise provided in this article, the revisor
shall make the following changes, with appropriate grammatical
corrections, in Minnesota Statutes and Minnesota Rules:
new text end

new text begin (1) delete references to the Office of Environmental
Assistance or its director and insert references to the
Pollution Control Agency or its commissioner;
new text end

new text begin (2) delete language that is made superfluous by the merger
of the agency and the office;
new text end

new text begin (3) in Minnesota Statutes, chapters 115A to 116, delete
references to obsolete names of committees in the senate and
house of representatives and insert generic references to
committees with jurisdiction over the specified areas of
governance; and
new text end

new text begin (4) in Minnesota Statutes, chapters 115A to 116, delete
obsolete references to reports required to be submitted to the
legislature.
new text end

Sec. 162. new text begin REPEALER.
new text end

new text begin Subdivision 1. new text end

new text begin Metropolitan council. new text end

new text begin Minnesota Statutes
2004, sections 473.156; and 473.197, subdivisions 1, 2, 3, and
5, are repealed effective the day following final enactment.
new text end

new text begin Subd. 2. new text end

new text begin State lands. new text end

new text begin Minnesota Statutes 2004, sections
94.343, subdivision 6; 94.344, subdivision 6; 94.348; and
94.349, are repealed.
new text end

new text begin Subd. 3. new text end

new text begin Pca/oea merger. new text end

new text begin Minnesota Statutes 2004,
sections 115A.03, subdivisions 8a and 22a; 115A.055, subdivision
1; 115D.03, subdivision 4; and 473.801, subdivision 6, are
repealed.
new text end

new text begin Subd. 4. new text end

new text begin Off-highway vehicle safety and conservation
program. new text end

new text begin Minnesota Statutes 2004, section 84.901, is repealed.
new text end

ARTICLE 3

JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS

Section 1. new text begin JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.
new text end

The sums shown in the columns marked "APPROPRIATIONS" are
appropriated from the general fund, or another named fund, to
the agencies and for the purposes specified in this article, to
be available for the fiscal years indicated for each purpose.
The figures "2006" and "2007," where used in this article, mean
that the appropriation or appropriations listed under them are
available for the fiscal year ending June 30, 2006, or June 30,
2007, respectively. The term "first year" means the fiscal year
ending June 30, 2006, and the term "second year" means the
fiscal year ending June 30, 2007.
SUMMARY BY FUND

2006 2007 TOTAL

General $ 161,219,000 $ 146,559,000 $ 307,778,000

Workforce
Development 16,627,000 16,827,000 33,454,000

Remediation 700,000 700,000 1,400,000

Petroleum Tank
Cleanup 1,084,000 1,084,000 2,168,000

Workers'
Compensation 21,750,000 21,750,000 43,500,000

TOTAL $ 201,380,000 $ 186,920,000 $ 388,300,000

APPROPRIATIONS
Available for the Year
Ending June 30
2006 2007

Sec. 2. EMPLOYMENT AND
ECONOMIC DEVELOPMENT

Subdivision 1.

Total
Appropriation $ 69,825,000 $ 54,549,000

Summary by Fund

General 54,448,000 38,972,000

Remediation 700,000 700,000

Workforce
Development 14,677,000 14,877,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Business and
Community Development 23,359,000 7,883,000

Summary by Fund

General 22,659,000 7,183,000

Remediation 700,000 700,000

$150,000 the first year and $150,000
the second year are from the general
fund for a grant under Minnesota
Statutes, section 116J.421, to the
Rural Policy and Development Center at
St. Peter, Minnesota. The grant shall
be used for research and policy
analysis on emerging economic and
social issues in rural Minnesota, to
serve as a policy resource center for
rural Minnesota communities, to
encourage collaboration across higher
education institutions to provide
interdisciplinary team approaches to
research and problem-solving in rural
communities, and to administer overall
operations of the center.

The grant shall be provided upon the
condition that each state-appropriated
dollar be matched with a nonstate
dollar. Acceptable matching funds are
nonstate contributions that the center
has received and have not been used to
match previous state grants. Any funds
not spent the first year are available
the second year.

$155,000 the first year and $155,000
the second year are from the general
fund for a grant to the Metropolitan
Economic Development Association for
continuing minority business
development programs in the
metropolitan area.

$150,000 the first year and $150,000
the second year are from the general
fund for a grant to WomenVenture for
women's business development programs.

$250,000 the first year and $250,000
the second year are to establish a
methamphetamine laboratory cleanup
revolving loan fund pursuant to
Minnesota Statutes, section 446A.083.
This is a onetime appropriation. This
appropriation is available until spent.

$18,000 in the first year and $17,000
in the second year are for onetime
grants to the Riverbend Center for
Entrepreneurial Facilitation in Blue
Earth County. The grants must be used
to continue a program to assist in the
development of entrepreneurs and small
businesses. The grants must be
provided on the condition that each
state-appropriated dollar be matched
with a nonstate dollar. Any balance in
the first year does not cancel but is
available in the second year.

Grant recipients must report to the
commissioner by February 1 in each of
the two years after the year of receipt
of the grant. The report must detail
the number of customers served; the
number of businesses started,
stabilized, or expanded; the number of
jobs created and retained; and business
success rates. The commissioner shall
report to the legislature on the
program's assistance to entrepreneurs
and small businesses. The report shall
contain an evaluation of the results.

$15,000,000 the first year is for the
direct and indirect expenses of the
collaborative research partnership
between the University of Minnesota and
the Mayo Foundation for research in
biotechnology and medical genomics.
This is a onetime appropriation. An
annual report on the expenditure of
this appropriation must be submitted to
the governor and the chairs of the
senate Higher Education Budget
Division, the house of representatives
Higher Education Finance Committee, the
senate Environment, Agriculture, and
Economic Development Budget Division,
and the house of representatives Jobs
and Economic Opportunity Policy and
Finance Committee, by June 30 of each
fiscal year until the appropriation is
expended. This appropriation is
available until expended.

$100,000 the first year and $100,000
the second year are to help small
businesses access federal funds through
the federal Small Business Innovation
Research Program and the federal Small
Business Technology Transfer Program.
Department services must include
maintaining connections to 11 federal
programs, assessment of specific
funding opportunities, review of
funding proposals, referral to specific
consulting services, and training
workshops throughout the state. The
appropriation is added to the agency's
base. Unless prohibited by federal
law, the department must implement fees
for services that help companies seek
federal Phase II Small Business
Innovation Research grants. The
recommended fee schedule must be
reported to the chairs of the house of
representatives finance committee and
senate budget division with
jurisdiction over economic development
by February 1, 2006.

$60,000 the first year and $60,000 the
second year are for grants to the
Minnesota Inventors Congress. Of this
amount, $10,000 each year is for the
Student Inventors Congress.

$15,000 the first year from the base is
for a onetime grant to La Creche Early
Childhood Centers, Inc. of Minneapolis.

$125,000 the first year is for a grant
to the Northwest Regional Development
Commission at Warren to do field
research on the planting and production
of cold-hardy grape cultivars. This is
a onetime appropriation and is
available until expended.

This vineyard production research
project is to select cold-hardy
cultivars and cultural practices that
can diversify the agricultural
landscape of Minnesota and stimulate
economic development with subsequent
expansion into value-added businesses
and the winery industry. Treatments
used in this research project must
focus on development of cultural and
management practices that include
trials on planting depths, vine root
care, cultivation techniques, mulching,
and other methods that will enhance
productivity and winter survival in
subzero temperatures.

An annual report is required, including
an economic assessment that compares
the input requirements and feasibility
of each overwintering technique and its
contribution to the success of the
vines. The report must be submitted to
the chairs of the house of
representatives and senate policy
committees with jurisdiction over
agriculture. The Northwest Regional
Development Commission is encouraged to
work with the University of Minnesota
and the North Dakota State University
experiment stations and on-farm sites
to evaluate the suitability of
regionally developed grape cultivars in
areas of harsh winters and short
growing seasons.

$250,000 the first year is for a
onetime grant to the Blandin Foundation
for the "get broadband" program. This
appropriation must be matched equally
by nonstate funds and is available
until expended. Expenditures made by
the Blandin Foundation beginning
December 1, 2004, may be used as match
for this appropriation. The "get
broadband" program must be designed to
increase the use of broadband-based
technologies by businesses, schools,
health care organizations, government
organizations, and the general public.

$100,000 the first year is for a
onetime grant to the Children's
Discovery Museum for furnishing and
equipping the new Children's Discovery
Museum in Grand Rapids.

Subd. 3.

Workforce Partnerships 15,229,000 15,229,000

Summary by Fund

General 8,347,000 8,347,000

Workforce
Development 6,882,000 6,882,000

$6,785,000 the first year and
$6,785,000 the second year are from the
general fund for the Minnesota job
skills partnership program under
Minnesota Statutes, sections 116L.01 to
116L.17. If the appropriation for
either year is insufficient, the
appropriation for the other year is
available. This appropriation does not
cancel.

$305,000 the first year and $305,000
the second year are from the general
fund for a grant under Minnesota
Statutes, section 116J.8747, to Twin
Cities RISE! to provide training to
hard-to-train individuals.

$875,000 the first year and $875,000
the second year are from the workforce
development fund for opportunities
industrialization center programs.

$500,000 the first year and $500,000
the second year are from the workforce
development fund for a onetime grant to
the Minnesota Opportunities
Industrialization Centers State
Council. The grant shall be used by
the American Indian Opportunities
Industrialization Centers of
Minneapolis, and the Northwestern
Opportunities Industrialization Centers
of Bemidji, to provide training to
American Indians on personal financial
management and investment and to become
small businesspersons. The
opportunities industrialization centers
may contract with any accredited state
or private educational institution to
deliver training.

$500,000 the first year and $500,000
the second year are from the workforce
development fund for a onetime grant to
the Minnesota Opportunity
Industrialization Centers State
Council. The grant shall be used to
initiate and expand health occupation
training at Minnesota Opportunity
Industrialization Centers. The grant
shall be distributed evenly among those
Minnesota Opportunity Industrialization
Centers that have plans to either
initiate or expand health occupations
and career ladder training programs for
individuals seeking employment as
nurses, nursing assistants, home health
aides, phlebotomists, or in the field
of medical coding.

The first $1,450,000 deposited in each
year of the biennium and in each year
of subsequent bienniums into the
contingent account created under
Minnesota Statutes, section 268.196,
subdivision 3, shall be transferred
upon deposit to the workforce
development fund created under
Minnesota Statutes, section 116L.20.
Deposits in excess of the $1,450,000
shall be transferred upon deposit to
the general fund.

$1,069,000 the first year and
$1,069,000 the second year are from the
general fund and $3,000,000 the first
year and $3,000,000 the second year are
from the workforce development fund for
a onetime grant for the Minnesota youth
program. If the appropriation in
either year is insufficient, the
appropriation for the other year is
available.

$183,000 the first year and $183,000
the second year are for a onetime grant
for the learn-to-earn summer youth
employment program. This appropriation
is available until spent.

$757,000 the first year and $757,000
the second year are from the workforce
development fund for a onetime grant
for the youthbuild program under
Minnesota Statutes, sections 268.361 to
268.3661. A Minnesota Youthbuild
program funded under this section as
authorized in Minnesota Statutes,
sections 116L.361 to 116L.366,
qualifies as an approved training
program under Minnesota Rules, part
5200.0930, subpart 1.

$1,000,000 the first year and
$1,000,000 the second year are from the
workforce development fund for a
onetime grant to the Minnesota Alliance
of Boys and Girls Clubs to administer a
statewide project of youth job skills
development. This project, which may
have career guidance components, is to
encourage, train, and assist youth in
job-seeking skills, workplace
orientation, and job-site knowledge
through coaching. This grant requires
a 25 percent match from nonstate
resources.

$5,000 the first year and $5,000 the
second year are for a onetime grant to
the Northwest Regional Curfew Center
under the youth intervention program in
Minnesota Statutes, section 116L.30.

$8,500 in the first year and $8,500 in
the second year are from the
department's base for a grant to the
Twin Cities Community Voice Mail to
maintain the toll-free telephone number
for the Greater Minnesota Project. The
commissioner must ensure that the
telephone number is not changed for the
2006-2007 biennium.

$250,000 the first year and $250,000
the second year are from the workforce
development fund for a grant to
Lifetrack Resources for its immigrant
and refugee collaborative programs,
including those related to job-seeking
skills and workplace orientation,
intensive job development, functional
work English, and on-site job coaching.

Subd. 4.

Workforce Services 27,960,000 28,160,000

Summary by Fund

General 20,165,000 20,165,000

Workforce
Development 7,795,000 7,995,000

$4,864,000 the first year and
$4,864,000 the second year are from the
general fund and $7,420,000 the first
year and $7,420,000 the second year are
from the workforce development fund for
extended employment services for
persons with severe disabilities or
related conditions under Minnesota
Statutes, section 268A.15. Of the
amount from the workforce development
fund, $500,000 each year is onetime.

$1,690,000 the first year and
$1,690,000 the second year are from the
general fund for grants under Minnesota
Statutes, section 268A.11, for the
eight centers for independent living.
Money not expended the first year is
available the second year.

$150,000 the first year and $150,000
the second year are from the general
fund and $175,000 the first year and
$175,000 the second year are from the
workforce development fund for grants
under Minnesota Statutes, section
268A.03, to Rise, Inc. for the
Minnesota Employment Center for People
Who are Deaf or Hard-of-Hearing. Money
not expended the first year is
available the second year. Of the
amount from the workforce development
fund, $150,000 each year is onetime.

$1,000,000 the first year and
$1,000,000 the second year are from the
general fund and $200,000 the first
year and $400,000 the second year are
from the workforce development fund for
grants for programs that provide
employment support services to persons
with mental illness under Minnesota
Statutes, sections 268A.13 and
268A.14. Up to $77,000 each year may
be used for administrative and salary
expenses. The appropriation from the
workforce development fund is onetime.

$4,940,000 the first year and
$4,940,000 the second year are from the
general fund for state services for the
blind activities.

$7,521,000 the first year and
$7,521,000 the second year are from the
general fund for the state's vocational
rehabilitation program for people with
significant disabilities to assist with
employment, under Minnesota Statutes,
chapter 268A.

On or after July 1, 2005, the
commissioner of finance shall cancel
the unencumbered balance in the
contaminated site cleanup and
development account to the unrestricted
fund balance in the general fund.

Subd. 5.

State-Funded
Administration 3,277,000 3,277,000

Sec. 3. MINNESOTA CONSERVATION CORPS 1,200,000 1,200,000

This appropriation is from the
workforce development fund for a
onetime appropriation for the purposes
of Minnesota Statutes, section 84.991.

Sec. 4. COMMERCE

Subdivision 1.

Total
Appropriation 22,065,000 22,065,000

Summary by Fund

General 20,146,000 20,146,000

Petroleum
Cleanup 1,084,000 1,084,000

Workers'
Compensation 835,000 835,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Financial Examinations 5,994,000 5,994,000

Subd. 3.

Petroleum Tank Release
Cleanup Board 1,084,000 1,084,000

This appropriation is from the
petroleum tank release cleanup fund.

Subd. 4.

Administrative Services 5,418,000 5,418,000

Subd. 5.

Market Assurance 5,757,000 5,757,000

Summary by Fund

General 4,922,000 4,922,000

Workers'
Compensation 835,000 835,000

Subd. 6.

Energy and
Telecommunications 3,812,000 3,812,000

Subd. 7.

Fair Housing Education

Of the money appropriated for fair
housing education under Laws 2001,
chapter 208, section 28, the
unencumbered balance is canceled and
transferred to the general fund.

Subd. 8.

Mortgage Consumer Education

Of the unexpended balance in the
consumer education account established
under Minnesota Statutes, section
58.10, subdivision 3, $200,000 is
transferred to the general fund.

Subd. 9.

Liquefied Petroleum Gas Account

The unexpended balance in the liquefied
petroleum gas account established under
Minnesota Statutes, section 239.785,
subdivision 6, is canceled and
transferred to the general fund.

Sec. 5. HOUSING FINANCE AGENCY

Subdivision 1.

Total
Appropriation 35,235,000 35,235,000

The amounts that may be spent from this
appropriation for certain programs are
specified in the following subdivisions.

This appropriation is for transfer to
the housing development fund for the
programs specified. Except as
otherwise indicated, this transfer is
part of the agency's permanent budget
base.

Subd. 2.

Challenge Program

10,907,000 10,907,000

For the economic development and
housing challenge program under
Minnesota Statutes, section 462A.33.
Of this amount, $1,285,000 each year
shall be made available during the
first eight months of the fiscal year
exclusively for housing projects for
American Indians. Any funds not
committed to housing projects for
American Indians in the first eight
months of the fiscal year, shall be
available for any eligible activity
under Minnesota Statutes, section
462A.33.

Subd. 3.

Housing Trust Fund

$6,305,000 the first year and
$6,305,000 the second year are for the
housing trust fund to be deposited in
the housing trust fund account created
under Minnesota Statutes, section
462A.201, and used for the purposes
provided in that section. The base
funding for this program shall be
$8,305,000 each year in the 2008-2009
biennium.

Subd. 4.

Rental Assistance for Mentally Ill

1,638,000 1,638,000

For a rental housing assistance program
for persons with a mental illness or
families with an adult member with a
mental illness under Minnesota
Statutes, section 462A.2097. The
agency must not reduce the funding
under this subdivision.

Subd. 5.

Family Homeless Prevention

3,715,000 3,715,000

For family homeless prevention and
assistance programs under Minnesota
Statutes, section 462A.204. Any
balance in the first year does not
cancel but is available in the second
year.

As provided in Minnesota Statutes,
section 462A.20, subdivision 3, the
agency may transfer unencumbered
balances from one appropriated account
to another as necessary to implement
the business plan of the working group
on long-term homelessness established
in Laws 2003, chapter 128, article 15,
section 9.

Subd. 6.

Home Ownership
Assistance Fund

The budget base for the home ownership
assistance fund shall be $885,000 in
fiscal year 2008 and $885,000 in fiscal
year 2009.

Subd. 7.

Affordable Rental
Investment Fund

$8,996,000 the first year and
$8,996,000 the second year are for the
affordable rental investment fund
program under Minnesota Statutes,
section 462A.21, subdivision 8b.

This appropriation is to finance the
acquisition, rehabilitation, and debt
restructuring of federally assisted
rental property and for making equity
take-out loans under Minnesota
Statutes, section 462A.05, subdivision
39. This appropriation also may be
used to finance the acquisition,
rehabilitation, and debt restructuring
of existing supportive housing
properties. For purposes of this
subdivision, "supportive housing" means
affordable rental housing with links to
services necessary for individuals,
youth, and families with children to
maintain housing stability.

The owner of the federally assisted
rental property must agree to
participate in the applicable federally
assisted housing program and to extend
any existing low-income affordability
restrictions on the housing for the
maximum term permitted. The owner must
also enter into an agreement that gives
local units of government, housing and
redevelopment authorities, and
nonprofit housing organizations the
right of first refusal if the rental
property is offered for sale. Priority
must be given among comparable
federally assisted rental properties to
properties with the longest remaining
term under an agreement for federal
rental assistance. Priority must also
be given among comparable rental
housing developments to developments
that are or will be owned by local
government units, a housing and
redevelopment authority, or a nonprofit
housing organization.

Subd. 8.

Housing Rehabilitation
and Accessibility

$2,654,000 the first year and
$2,654,000 the second year are for the
housing rehabilitation and
accessibility program under Minnesota
Statutes, section 462A.05, subdivisions
14a and 15a. The budget base for the
housing rehabilitation and
accessibility program shall be
$3,972,000 in fiscal year 2008 and
$3,972,000 in fiscal year 2009.

Subd. 9.

Home Ownership Education,
Counseling, and Training

770,000 770,000

For the home ownership education,
counseling, and training program under
Minnesota Statutes, section 462A.209.

Subd. 10.

Capacity Building
Grants

$250,000 the first year and $250,000
the second year are for nonprofit
capacity building grants under
Minnesota Statutes, section 462A.21,
subdivision 3b.

Sec. 6. EXPLORE MINNESOTA
TOURISM 8,701,000 9,701,000

To develop maximum private sector
involvement in tourism, $4,000,000 each
year must be matched by Explore
Minnesota tourism from nonstate
sources. Up to one-half of the total
match requirement may include in-kind
contributions. Cash match is defined
as revenue to the state or documented
case expenditures directly expended to
support Explore Minnesota tourism
programs.

In the second year, for every dollar
generated from nonstate sources in the
previous year in excess of $4,000,000,
an amount of up to $1,000,000 is
appropriated from the general fund to
Explore Minnesota tourism for marketing
purposes. This incentive is ongoing.
In order to maximize marketing grant
benefits, the director must give
priority for organizational partnership
marketing grants to organizations with
year-round sustained tourism
activities. For programs and projects
submitted, the director must give
priority to those that encompass two or
more areas or that attract nonresident
travelers to the state.

Funding for the marketing grants is
available either year of the biennium.
Unexpended grant funds from the first
year are available in the second year.

The director may use grant dollars or
the value of in-kind services to
provide the state contribution for the
partnership grant program.

Any unexpended money from the general
fund appropriations made under this
section does not cancel but must be
placed in a special marketing account
for use by Explore Minnesota tourism
for additional marketing activities.

Of this amount, $50,000 the first year
from the base is for a onetime grant to
the Mississippi River Parkway
Commission to support the increased
promotion of tourism along the Great
River Road. This appropriation is
available until June 30, 2007.

$250,000 the first year and $250,000
the second year are for the Minnesota
Film Board. The appropriation in each
year is available only upon receipt by
the board of $1 in matching
contributions of money or in-kind from
nonstate sources for every $3 provided
by this appropriation.

Of this amount, $60,000 the first year
is for a onetime grant to the city of
Winona for the Great River Shakespeare
Festival. The funds must be used to
promote and market the Great River
Shakespeare Festival. To develop
maximum private sector involvement in
marketing the festival, $60,000 must be
matched by nonstate sources.

Sec. 7. LABOR AND INDUSTRY

Subdivision 1.

Total
Appropriation 22,919,000 22,919,000

Summary by Fund

General 2,872,000 2,872,000

Workers'
Compensation 19,297,000 19,297,000

Workforce
Development 750,000 750,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Workers' Compensation

10,371,000 10,371,000

This appropriation is from the workers'
compensation fund.

Up to $150,000 the first year and up to
$150,000 the second year are for grants
to the Vinland Center for
rehabilitation services. The grants
shall be distributed as the department
refers injured workers to the Vinland
Center to receive rehabilitation
services.

Subd. 3.

Workplace Services

7,261,000 7,261,000

Summary by Fund

General 2,872,000 2,872,000

Workers'
Compensation 3,639,000 3,639,000

Workforce
Development 750,000 750,000

$650,000 each year is from the
workforce development fund for the
apprenticeship program under Minnesota
Statutes, chapter 178.

$100,000 the first year and $100,000
the second year are for labor education
and advancement program grants. This
appropriation is from the workforce
development fund.

The annual license fees authorized
under Minnesota Statutes, section
326.48, and detailed in Minnesota
Rules, part 5230.0100, subpart 3, shall
increase $20 for a journeyman
high-pressure piping pipefitter
license, $20 for a high-pressure piping
contracting pipefitter, $10 for an
inactive license, and $100 for a
high-pressure pipefitting business
license.

The permit filing and inspection fees
authorized under Minnesota Statutes,
section 326.47, and detailed in
Minnesota Rules, part 5230.0100,
subpart 4, shall be increased as
follows: the filing of a permit
application shall be increased $50, the
minimum high-pressure piping inspection
fee shall be increased $50, and the
schedule of inspection fee rates shall
be increased by ten percent.

Subd. 4.

General Support

5,287,000 5,287,000

This appropriation is from the workers'
compensation fund.

The commissioner of labor and industry
shall report to the 2006 legislature on
the safety and education program for
Minnesota loggers under Minnesota
Statutes, section 176.130.

Sec. 8. BUREAU OF MEDIATION SERVICES

Subdivision 1.

Total
Appropriation 1,773,000 1,773,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Mediation Services

1,673,000 1,673,000

Subd. 3.

Labor Management
Cooperation Grants

100,000 100,000

$100,000 each year is for onetime
grants to area labor-management
committees. Grants may be awarded for
a 12-month period beginning July 1 of
each year. Any unencumbered balance
remaining at the end of the first year
does not cancel but is available for
the second year.

Sec. 9. WORKERS' COMPENSATION
COURT OF APPEALS 1,618,000 1,618,000

This appropriation is from the workers'
compensation fund.

Sec. 10. MINNESOTA HISTORICAL
SOCIETY

Subdivision 1.

Total
Appropriation 23,317,000 23,133,000

The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.

Subd. 2.

Education and
Outreach

13,191,000 13,191,000

Of this amount, $60,000 each year is to
offset the revenue loss from not
charging fees for general tours at the
Capitol. Notwithstanding Minnesota
Statutes, section 138.668, the
Minnesota Historical Society may not
charge a fee for its general tours at
the Capitol, but may charge fees for
special programs other than general
tours. This appropriation is part of
the society's budget base.

$700,000 the first year and $700,000
the second year are to operate historic
sites including: Kelley Farm, Hill
House, Lower Sioux Agency, Fort
Ridgely, Historic Forestville, the
Forest History Center, and the Comstock
House. In order to maximize public
access to historic sites, the Minnesota
Historical Society shall work with
interested communities or individuals
who are willing to provide financial or
in-kind support for site operations.
This appropriation is part of the
Minnesota Historical Society's base
budget. This paragraph is effective
the day following final enactment.

$50,000 the first year and $50,000 the
second year are to assist the Minnesota
Sesquicentennial Commission for
planning and support of its mission.
This is a onetime appropriation and is
available until January 30, 2009.

Subd. 3.

Preservation and Access

9,772,000 9,772,000

Subd. 4.

Fiscal Agent

354,000 170,000

(a) Minnesota International Center

43,000 42,000

(b) Minnesota Air National
Guard Museum

16,000 -0-

(c) Minnesota Military Museum

67,000 -0-

(d) Farmamerica

128,000 128,000

Notwithstanding any other law, this
appropriation may be used for
operations.

(e) $100,000 is appropriated from the
general fund to the Minnesota
Historical Society for a onetime grant
to Otter Tail County for the redesign,
furnishing, and equipping of a Veterans
Museum in Perham. This appropriation
is available until spent.

(f) Balances Forward

Any unencumbered balance remaining in
this subdivision the first year does
not cancel but is available for the
second year of the biennium.

Subd. 5.

Fund Transfer

The Minnesota Historical Society may
reallocate funds appropriated in and
between subdivisions 2 and 3 for any
program purposes.

Sec. 11. BOARD OF THE ARTS

Subdivision 1.

Total
Appropriation 8,593,000 8,593,000

If the appropriation for either year is
insufficient, the appropriation for the
other year is available.

Subd. 2.

Operations and Services

404,000 404,000

Subd. 3.

Grants Programs

5,767,000 5,767,000

Subd. 4.

Regional Arts
Councils

2,422,000 2,422,000

Sec. 12. BOARD OF
ACCOUNTANCY 487,000 487,000

Effective the day following final
enactment and no later than June 30,
2006, the Board of Accountancy shall
combine its administrative functions
with those of the Board of
Architecture, Engineering, Land
Surveying, Landscape Architecture,
Geoscience, and Interior Design. Both
appointed boards shall remain intact,
and both shall maintain their status as
separate state boards.

Sec. 13.

BOARD OF ARCHITECTURE,
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE, GEOSCIENCE,
AND INTERIOR DESIGN 785,000 785,000

Sec. 14.

BOARD OF BARBER
AND COSMETOLOGISTS EXAMINERS 699,000 699,000

Sec. 15.

PUBLIC UTILITIES
COMMISSION 4,163,000 4,163,000

Sec. 16. BOARD OF ELECTRICITY

On or before June 30, 2006, the board
shall transfer $4,000,000 from the
special revenue fund to the general
fund.

Sec. 17. new text begin FUND TRANSFER.
new text end

new text begin By June 30, 2007, the commissioner of the Pollution Control
Agency shall transfer $4,000,000 from the metropolitan landfill
contingency action trust account within the remediation fund to
the commissioner of finance for transfer to the renewable
development account, under Minnesota Statutes, section
116C.779. This is a onetime transfer from the metropolitan
landfill contingency action trust account to the renewable
development account. It is the intent of the legislature to
restore these funds to the metropolitan landfill contingency
action trust account as revenues become available in the future
to ensure the state meets future financial obligations under
Minnesota Statutes, section 473.845. The funds provided for in
this transfer may only be used to make the incentive payments
for wind energy conversion systems authorized under Minnesota
Statutes, section 116C.779, subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 4

JOBS AND ECONOMIC DEVELOPMENT
POLICY PROVISIONS

Section 1.

Minnesota Statutes 2004, section 3.303, is
amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Economic status of women. new text end

new text begin The commission shall
study and report to the legislature on all matters relating to
the economic status of women in Minnesota, including:
new text end

new text begin (1) the contributions of women to the economy;
new text end

new text begin (2) economic security of homemakers and women in the labor
force;
new text end

new text begin (3) opportunities for education and vocational training;
new text end

new text begin (4) employment opportunities;
new text end

new text begin (5) women's access to benefits and services provided to
citizens of this state; and
new text end

new text begin (6) laws and business practices constituting barriers to
the full participation by women in the economy.
new text end

new text begin The commission shall also study the adequacy of programs and
services relating to families in Minnesota. The commission
shall communicate its findings and make recommendations to the
legislature on an ongoing basis.
new text end

Sec. 2.

Minnesota Statutes 2004, section 41A.09,
subdivision 2a, is amended to read:

Subd. 2a.

Definitions.

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

(a) "Ethanol" means fermentation ethyl alcohol derived from
agricultural products, including potatoes, cereal grains, cheese
whey, and sugar beets; forest products; or other renewable
resources, including residue and waste generated from the
production, processing, and marketing of agricultural products,
forest products, and other renewable resources, that:

(1) meets all of the specifications in ASTM specification
deleted text begin D4806-01 deleted text end new text begin D4806-04a new text end ; and

(2) is denatured as specified in Code of Federal
Regulations, title 27, parts 20 and 21.

(b) "Ethanol plant" means a plant at which ethanol is
produced.

(c) "Commissioner" means the commissioner of agriculture.

Sec. 3.

new text begin [45.22] LICENSE EDUCATION.
new text end

new text begin The following fees must be paid to the commissioner:
new text end

new text begin (1) initial course approval, $10 for each hour or fraction
of one hour of education course approval sought. Initial course
approval expires on the last day of the 24th month after the
course is approved;
new text end

new text begin (2) renewal of course approval, $10 per course. Renewal of
course approval expires on the last day of the 24th month after
the course is renewed;
new text end

new text begin (3) initial coordinator approval, $100. Initial
coordinator approval expires on the last day of the 24th month
after the coordinator is approved; and
new text end

new text begin (4) renewal of coordinator approval, $10. Renewal of
coordinator approval expires on the last day of the 24th month
after the coordinator is renewed.
new text end

Sec. 4.

Minnesota Statutes 2004, section 60A.14,
subdivision 1, is amended to read:

Subdivision 1.

Fees other than examination fees.

In
addition to the fees and charges provided for examinations, the
following fees must be paid to the commissioner for deposit in
the general fund:

(a) by township mutual fire insurance companies;

(1) for filing certificate of incorporation $25 and
amendments thereto, $10;

(2) for filing annual statements, $15;

(3) for each annual certificate of authority, $15;

(4) for filing bylaws $25 and amendments thereto, $10;

(b) by other domestic and foreign companies including
fraternals and reciprocal exchanges;

(1) new text begin for filing an application for an initial certification
of authority to be admitted to transact business in this state,
$1,500;
new text end

new text begin (2) new text end for filing certified copy of certificate of articles of
incorporation, $100;

deleted text begin (2) deleted text end new text begin (3) new text end for filing annual statement, $225;

deleted text begin (3) deleted text end new text begin (4) new text end for filing certified copy of amendment to
certificate or articles of incorporation, $100;

deleted text begin (4) deleted text end new text begin (5) new text end for filing bylaws, $75 or amendments thereto, $75;

deleted text begin (5) deleted text end new text begin (6) new text end for each company's certificate of authority, $575,
annually;

(c) the following general fees apply:

(1) for each certificate, including certified copy of
certificate of authority, renewal, valuation of life policies,
corporate condition or qualification, $25;

(2) for each copy of paper on file in the commissioner's
office 50 cents per page, and $2.50 for certifying the same;

(3) for license to procure insurance in unadmitted foreign
companies, $575;

(4) for valuing the policies of life insurance companies,
one cent per $1,000 of insurance so valued, provided that the
fee shall not exceed $13,000 per year for any company. The
commissioner may, in lieu of a valuation of the policies of any
foreign life insurance company admitted, or applying for
admission, to do business in this state, accept a certificate of
valuation from the company's own actuary or from the
commissioner of insurance of the state or territory in which the
company is domiciled;

(5) for receiving and filing certificates of policies by
the company's actuary, or by the commissioner of insurance of
any other state or territory, $50;

(6) for each appointment of an agent filed with the
commissioner, $10;

(7) for filing forms and rates, $75 per filing, which may
be paid on a quarterly basis in response to an invoice. Billing
and payment may be made electronically;

(8) for annual renewal of surplus lines insurer license,
$300;

(9) $250 filing fee for a large risk alternative rating
option plan that meets the $250,000 threshold requirement.

The commissioner shall adopt rules to define filings that
are subject to a fee.

Sec. 5.

Minnesota Statutes 2004, section 60K.55,
subdivision 2, is amended to read:

Subd. 2.

Licensing fees.

(a) In addition to fees
provided for examinations, each insurance producer licensed
under this chapter shall pay to the commissioner a fee of:

(1) deleted text begin $40 deleted text end new text begin $50 new text end for an initial life, accident and health,
property, or casualty license issued to an individual insurance
producer, and a fee of deleted text begin $40 deleted text end new text begin $50 new text end for each renewal;

(2) deleted text begin $75 deleted text end new text begin $50 new text end for an initial variable life and variable
annuity license issued to an individual insurance producer, and
a fee of $50 for each renewal;

(3) deleted text begin $80 deleted text end new text begin $50 new text end for an initial personal lines license issued to
an individual insurance producer, and a fee of deleted text begin $80 deleted text end new text begin $50 new text end for each
renewal;

(4) deleted text begin $80 deleted text end new text begin $50 new text end for an initial limited lines license issued to
an individual insurance producer, and a fee of deleted text begin $80 deleted text end new text begin $50 new text end for each
renewal;

(5) $200 for an initial license issued to a business
entity, and a fee of deleted text begin $150 deleted text end new text begin $200 new text end for each renewal; and

(6) $500 for an initial surplus lines license, and a fee of
$500 for each renewal.

(b) Initial licenses issued under this chapter are valid
for a period not to exceed 24 months and expire on October 31 of
the renewal year assigned by the commissioner. Each renewal
insurance producer license is valid for a period of 24 months.
Licensees who submit renewal applications postmarked or
delivered on or before October 15 of the renewal year may
continue to transact business whether or not the renewal license
has been received by November 1. Licensees who submit
applications postmarked or delivered after October 15 of the
renewal year must not transact business after the expiration
date of the license until the renewal license has been received.

(c) All fees are nonreturnable, except that an overpayment
of any fee may be refunded upon proper application.

Sec. 6.

Minnesota Statutes 2004, section 72B.04,
subdivision 10, is amended to read:

Subd. 10.

Fees.

A fee of deleted text begin $80 deleted text end new text begin $50 new text end is imposed for each
initial license or temporary permit and deleted text begin $80 deleted text end new text begin $50 new text end for each renewal
thereof or amendment thereto. A fee of $20 is imposed for the
registration of each nonlicensed adjuster who is required to
register under section 72B.06. All fees shall be transmitted to
the commissioner and shall be payable to the Department of
Commerce.

Sec. 7.

Minnesota Statutes 2004, section 82B.05,
subdivision 1, is amended to read:

Subdivision 1.

Members.

The Real Estate Appraiser
Advisory Board consists of 15 members appointed by the
commissioner of commerce. Three of the members must be public
members, four must be consumers of appraisal services, and eight
must be real estate appraisers of whom not less than two members
shall be registered real property appraisers, licensed real
property appraisers, or certified residential real property
appraisers deleted text begin and deleted text end new text begin , new text end not less than two members shall be certified
general real property appraisers new text begin , and not less than one member
shall be certified by the Appraisal Qualification Board of the
Appraisal Foundation to teach the Uniform Standards of
Professional Appraisal Practice new text end . The board is governed by
section 15.0575.

Sec. 8.

Minnesota Statutes 2004, section 82B.05,
subdivision 5, is amended to read:

Subd. 5.

Conduct of meetings.

Places of regular board
meetings must be decided by the vote of members. Written notice
must be given to each member of the time and place of each
meeting of the board at least ten days before the scheduled date
of regular board meetings. The board shall establish procedures
for emergency board meetings and other operational procedures,
subject to the approval of the commissioner.

The members of the board shall elect a chair from among the
members to preside at board meetings.

A quorum of the board is eight members.

The board shall meet new text begin at least once every six months new text end as
determined by a majority vote of the members or a call of the
commissioner.

Sec. 9.

Minnesota Statutes 2004, section 82B.09,
subdivision 1, is amended to read:

Subdivision 1.

Amounts.

The following fees must be paid
to the commissioner new text begin :
new text end

new text begin (1) $150 new text end for each initial individual real estate
appraiser's license deleted text begin : $150 if the license expires more than 12
months after issuance, $100 if the license expires less than 12
months after issuance deleted text end ; and deleted text begin a fee of
deleted text end

new text begin (2) new text end $100 for each renewal.

Sec. 10.

Minnesota Statutes 2004, section 115C.07,
subdivision 3, is amended to read:

Subd. 3.

Rules.

(a) The board shall adopt rules
regarding its practices and procedures, the form and procedure
for applications for compensation from the fund, procedures for
investigation of claims and specifying the costs that are
eligible for reimbursement from the fund.

(b) The board may adopt rules requiring certification of
environmental consultants.

(c) The board may adopt other rules necessary to implement
this chapter.

new text begin (d) The board may use section 14.389 to adopt rules
specifying the competitive bidding requirements for consultant
services proposals.
new text end

new text begin (e) The board may use section 14.389 to adopt rules
specifying the written proposal and invoice requirements for
consultant services.
new text end

Sec. 11.

Minnesota Statutes 2004, section 115C.09,
subdivision 3h, is amended to read:

Subd. 3h.

Reimbursement; aboveground tanks in bulk
plants.

(a) As used in this subdivision, "bulk plant" means an
aboveground or underground tank facility with a storage capacity
of more than 1,100 gallons but less than 1,000,000 gallons that
is used to dispense petroleum into cargo tanks for
transportation and sale at another location.

(b) Notwithstanding any other provision in this chapter and
any rules adopted pursuant to this chapter, the board shall
reimburse 90 percent of an applicant's cost for bulk plant
upgrades or closures completed between June 1, 1998, and
November 1, 2003, to comply with Minnesota Rules, chapter 7151,
provided that the board determines the costs were incurred and
reasonable. The reimbursement may not exceed $10,000 per bulk
plant. new text begin The board may provide reimbursement under this paragraph
for work completed after November 1, 2003, if the work was
contracted for prior to that date and was not completed by that
date as a result of an unanticipated situation, provided that an
application for reimbursement under this paragraph, which may be
a renewal of an application previously denied, is submitted
prior to December 31, 2005.
new text end

(c) For corrective action at a bulk plant located on what
is or was railroad right-of-way, the board shall reimburse 90
percent of total reimbursable costs on the first $40,000 of
reimbursable costs and 100 percent of any remaining reimbursable
costs when the applicant can document that more than one bulk
plant was operated on the same section of right-of-way, as
determined by the commissioner of commerce.

Sec. 12.

Minnesota Statutes 2004, section 115C.09,
subdivision 3j, is amended to read:

Subd. 3j.

Retail locations and transport vehicles.

(a)
As used in this subdivision, "retail location" means a facility
located in the metropolitan area as defined in section 473.121,
subdivision 2, where gasoline is offered for sale to the general
public for use in automobiles and trucks. "Transport vehicle"
means a liquid fuel cargo tank used to deliver gasoline into
underground storage tanks during 2002 new text begin and 2003 new text end at a retail
location.

(b) Notwithstanding any other provision in this chapter,
and any rules adopted under this chapter, the board shall
reimburse 90 percent of an applicant's cost for retrofits of
retail locations and transport vehicles completed between
January 1, 2001, and January 1, 2006, to comply with section
116.49, subdivisions 3 and 4, provided that the board determines
the costs were incurred and reasonable. The reimbursement may
not exceed $3,000 per retail location and $3,000 per transport
vehicle.

Sec. 13.

Minnesota Statutes 2004, section 115C.13, is
amended to read:

115C.13 REPEALER.

Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04,
115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09,
115C.093, 115C.094, 115C.10, 115C.11, 115C.111, 115C.112,
115C.113, 115C.12, and 115C.13 new text begin , new text end are repealed effective June 30,
deleted text begin 2007 deleted text end new text begin 2012 new text end .

Sec. 14.

Minnesota Statutes 2004, section 116C.779,
subdivision 2, is amended to read:

Subd. 2.

Renewable energy production incentive.

(a)
Until January 1, 2018, up to deleted text begin $6,000,000 deleted text end new text begin $10,900,000 new text end annually
must be allocated from available funds in the account to fund
renewable energy production incentives. deleted text begin $4,500,000 deleted text end new text begin $9,400,000
new text end of this annual amount is for incentives for up to deleted text begin 100 deleted text end new text begin 200
new text end megawatts of electricity generated by wind energy conversion
systems that are eligible for the incentives under section
216C.41. The balance of this amount, up to $1,500,000 annually,
may be used for production incentives for on-farm biogas
recovery facilities that are eligible for the incentive under
section 216C.41 or for production incentives for other
renewables, to be provided in the same manner as under section
216C.41. Any portion of the deleted text begin $6,000,000 deleted text end new text begin $10,900,000 new text end not expended
in any calendar year for the incentive is available for other
spending purposes under this section. This subdivision does not
create an obligation to contribute funds to the account.

(b) The Department of Commerce shall determine eligibility
of projects under section 216C.41 for the purposes of this
subdivision. At least quarterly, the Department of Commerce
shall notify the public utility of the name and address of each
eligible project owner and the amount due to each project under
section 216C.41. The public utility shall make payments within
15 working days after receipt of notification of payments due.

Sec. 15.

Minnesota Statutes 2004, section 116J.551,
subdivision 1, is amended to read:

Subdivision 1.

Grant account.

A contaminated site
cleanup and development grant account is created in the general
fund. Money in the account may be used, as appropriated by law,
to make grants as provided in section 116J.554 and to pay for
the commissioner's costs in reviewing applications and making
grants. new text begin Notwithstanding section 16A.28, money appropriated to
the account is available for four years.
new text end

Sec. 16.

Minnesota Statutes 2004, section 116J.571, is
amended to read:

116J.571 CREATION OF ACCOUNTS.

Two deleted text begin greater Minnesota deleted text end redevelopment accounts are created,
one in the general fund and one in the bond proceeds fund.
Money in the accounts may be used to make grants as provided in
section 116J.575 deleted text begin . Money in the bond proceeds fund may only be
used for eligible costs for publicly owned property. Money in
the general fund may be used deleted text end new text begin and new text end to pay for the commissioner's
costs in reviewing deleted text begin the deleted text end applications new text begin and making grants new text end .

Sec. 17.

Minnesota Statutes 2004, section 116J.572, is
amended to read:

116J.572 DEFINITIONS.

Subdivision 1.

Scope of application.

For purposes of
sections 116J.571 to 116J.575, the terms in this section have
the meanings given.

Subd. 2.

Development authority.

"Development authority"
includes a statutory or home rule charter city, county, housing
and redevelopment authority, economic development authority, or
port authority deleted text begin located outside deleted text end new text begin .
new text end

new text begin Subd. 2a. new text end

new text begin Metropolitan area. new text end

new text begin "Metropolitan area" means
new text end the seven-county metropolitan area, as defined in section
473.121, subdivision 2.

new text begin Subd. 2b. new text end

new text begin Municipality. new text end

new text begin "Municipality" means the
statutory or home rule charter city, town, or, in the case of
unorganized territory, county in which the redevelopment is
located.
new text end

Subd. 3.

deleted text begin eligible deleted text end new text begin redevelopment new text end costs or costs.

" deleted text begin Eligible deleted text end new text begin Redevelopment new text end costs" or "costs" means the costs of
land acquisition, stabilizing unstable soils new text begin when infill is
required new text end , demolition, infrastructure improvements, new text begin and new text end ponding
or other environmental infrastructure deleted text begin ; building construction,
design and engineering; deleted text end and new text begin costs necessary for new text end adaptive reuse
of buildings new text begin , including remedial activities new text end . deleted text begin Eligible costs do
not include project administration and legal fees.
deleted text end

deleted text begin Subd. 4. deleted text end

deleted text begin Redevelopment. deleted text end

deleted text begin "Redevelopment" means recycling
obsolete, abandoned, or underutilized properties for new
industrial, commercial, or residential uses.
deleted text end

Sec. 18.

Minnesota Statutes 2004, section 116J.574, is
amended to read:

116J.574 GRANT APPLICATIONS.

Subdivision 1.

Application required.

To obtain a
new text begin redevelopment new text end grant, a development authority shall apply to the
commissioner. new text begin The governing body of the municipality must
approve the application by resolution.
new text end

Subd. 2.

Required content.

The commissioner shall
prescribe and provide the application form. The application
must include at least the following information:

(1) identification of the site;

(2) new text begin a redevelopment plan for the site;
new text end

new text begin (3) new text end a detailed deleted text begin budget deleted text end new text begin estimate new text end , deleted text begin including deleted text end new text begin along with
new text end necessary supporting evidence, of the total new text begin redevelopment new text end costs
for the site deleted text begin including the total eligible redevelopment costs deleted text end ;

deleted text begin (3) a complete deleted text end new text begin (4) an assessment of the development
potential or likely use of the site after completion of the
new text end redevelopment plan, including any specific commitments from
third parties to construct improvements on the site;

deleted text begin (4) a complete financing plan, including deleted text end new text begin (5) new text end the manner in
which the deleted text begin development authority uses innovative financial
partnerships between government, private for-profit, and
nonprofit sectors deleted text end new text begin municipality will meet the local match
requirement new text end ; and

deleted text begin (5) deleted text end new text begin (6) new text end any additional information or material deleted text begin that deleted text end the
commissioner prescribes.

Sec. 19.

Minnesota Statutes 2004, section 116J.575, as
amended by Laws 2005, chapter 20, article 1, section 33, is
amended to read:

116J.575 [GRANTS.]

Subdivision 1.

Commissioner discretion.

The commissioner
may make a grant for up to 50 percent of the eligible costs of a
project. The determination of whether to make a grant for a
site is within the discretion of the commissioner, subject to
this section and sections 116J.571 to 116J.574 and available
unencumbered money in the deleted text begin greater Minnesota deleted text end redevelopment
account. Notwithstanding section 116J.573, if the commissioner
determines that the applications for grants for projects in
greater Minnesota are less than the amount of grant funds
available, the commissioner may make grants for projects
anywhere in Minnesota. The commissioner's decisions and
application of the priorities under this section are not subject
to judicial review, except for abuse of discretion.

new text begin Subd. 1a. new text end

new text begin Priorities. new text end

new text begin (a) If applications for grants
exceed the available appropriations, grants shall be made for
sites that, in the commissioner's judgment, provide the highest
return in public benefits for the public costs incurred.
"Public benefits" include job creation, bioscience development,
environmental benefits to the state and region, efficient use of
public transportation, efficient use of existing infrastructure,
provision of affordable housing, multiuse development that
constitutes community rebuilding rather than single-use
development, crime reduction, blight reduction, community
stabilization, and property tax base maintenance or
improvement. In making this judgment, the commissioner shall
give priority to redevelopment projects with one or more of the
following characteristics:
new text end

new text begin (1) the need for redevelopment in conjunction with
contamination remediation needs;
new text end

new text begin (2) the redevelopment project meets current tax increment
financing requirements for a redevelopment district and tax
increments will contribute to the project;
new text end

new text begin (3) the redevelopment potential within the municipality;
new text end

new text begin (4) proximity to public transit if located in the
metropolitan area; and
new text end

new text begin (5) multijurisdictional projects that take into account the
need for affordable housing, transportation, and environmental
impact.
new text end

new text begin (b) The factors in paragraph (a) are not listed in a rank
order of priority; rather, the commissioner may weigh each
factor, depending upon the facts and circumstances, as the
commissioner considers appropriate.
new text end

Subd. 2.

Application cycles.

In making grants, the
commissioner shall establish semiannual application deadlines in
which grants will be authorized from all or part of the
available money in the account.

new text begin Subd. 3. new text end

new text begin Match required. new text end

new text begin In order to qualify for a grant
under sections 116J.571 to 116J.575, the municipality must pay
for at least one-half of the redevelopment costs as a local
match from any money available to the municipality.
new text end

Sec. 20.

Minnesota Statutes 2004, section 116J.63,
subdivision 2, is amended to read:

Subd. 2.

Fees.

new text begin (a) new text end Fees for reports, publications, or
related publicity or promotional material are not subject to the
rulemaking requirements of chapter 14 and are not subject to
section 16A.1285. The fees prescribed by the commissioner must
be commensurate with the distribution objective of the
department for the material produced or with the cost of
furnishing the services. new text begin Except as described in paragraph (b),
new text end all fees for materials and services must be deposited in the
general fund.

new text begin (b) The commissioner may sell marketing materials at cost
to economic development organizations and others in quantities
that would not otherwise be available through general fund
appropriations. Funds received must be placed in a special
revolving account and are appropriated to the commissioner to
pay for the production of the materials.
new text end

Sec. 21.

Minnesota Statutes 2004, section 116J.8731,
subdivision 5, is amended to read:

Subd. 5.

Grant limits.

A Minnesota investment fund grant
may not be approved for an amount in excess of $1,000,000. This
limit covers all money paid to complete the same project,
whether paid to one or more grant recipients and whether paid in
one or more fiscal years. deleted text begin The portion deleted text end new text begin A local community or
recognized Indian tribal government may retain 20 percent, but
not more than $100,000 new text end of a Minnesota investment fund grant deleted text begin that
exceeds $100,000 must be repaid to the state deleted text end when it is repaid
to the local community or recognized Indian tribal government by
the person or entity to which it was loaned by the local
community or Indian tribal government. Money repaid to the
state must be credited to a Minnesota investment revolving loan
account in the state treasury. Funds in the account are
appropriated to the commissioner and must be used in the same
manner as are funds appropriated to the Minnesota investment
fund. Funds repaid to the state through existing Minnesota
investment fund agreements must be credited to the Minnesota
investment revolving loan account effective July 1, deleted text begin 2003 deleted text end new text begin 2005 new text end .
A grant or loan may not be made to a person or entity for the
operation or expansion of a casino or a store which is used
solely or principally for retail sales. Persons or entities
receiving grants or loans must pay each employee total
compensation, including benefits not mandated by law, that on an
annualized basis is equal to at least 110 percent of the federal
poverty level for a family of four.

Sec. 22.

Minnesota Statutes 2004, section 116J.8747,
subdivision 2, is amended to read:

Subd. 2.

Qualified job training program.

To qualify for
grants under this section, a job training program must satisfy
the following requirements:

(1) the program must be operated by a nonprofit corporation
that qualifies under section 501(c)(3) of the Internal Revenue
Code;

(2) the program must spend at least $15,000 per graduate of
the program;

(3) the program must provide education and training in:

(i) basic skills, such as reading, writing, mathematics,
and communications;

(ii) thinking skills, such as reasoning, creative thinking,
decision making, and problem solving; and

(iii) personal qualities, such as responsibility,
self-esteem, self-management, honesty, and integrity;

(4) the program must provide income supplements, when
needed, to participants for housing, counseling, tuition, and
other basic needs;

(5) the program's education and training course must last
for new text begin an average of new text end at least six months;

(6) individuals served by the program must:

(i) be 18 years of age or older;

(ii) have federal adjusted gross income of no more than
$11,000 per year in the deleted text begin two years deleted text end new text begin calendar year new text end immediately
before entering the program;

(iii) have assets of no more than $7,000, excluding the
value of a homestead; and

(iv) not have been claimed as a dependent on the federal
tax return of another person in the previous taxable year; and

(7) the program must be certified by the commissioner of
employment and economic development as meeting the requirements
of this subdivision.

Sec. 23.

Minnesota Statutes 2004, section 116J.994,
subdivision 7, is amended to read:

Subd. 7.

Reports by recipients to grantors.

(a) A
business subsidy grantor must monitor the progress by the
recipient in achieving agreement goals.

(b) A recipient must provide information regarding goals
and results for two years after the benefit date or until the
goals are met, whichever is later. If the goals are not met,
the recipient must continue to provide information on the
subsidy until the subsidy is repaid. The information must be
filed on forms developed by the commissioner in cooperation with
representatives of local government. Copies of the completed
forms must be sent to the local government agency that provided
the subsidy or to the commissioner if the grantor is a state
agency. If the Iron Range Resources and Rehabilitation Board is
the grantor, the copies must be sent to the board. The report
must include:

(1) the type, public purpose, and amount of subsidies and
type of district, if the subsidy is tax increment financing;

(2) the hourly wage of each job created with separate bands
of wages;

(3) the sum of the hourly wages and cost of health
insurance provided by the employer with separate bands of wages;

(4) the date the job and wage goals will be reached;

(5) a statement of goals identified in the subsidy
agreement and an update on achievement of those goals;

(6) the location of the recipient prior to receiving the
business subsidy;

(7) new text begin the number of employees who ceased to be employed by
the recipient when the recipient relocated to become eligible
for the business subsidy;
new text end

new text begin (8) new text end why the recipient did not complete the project outlined
in the subsidy agreement at their previous location, if the
recipient was previously located at another site in Minnesota;

deleted text begin (8) deleted text end new text begin (9) new text end the name and address of the parent corporation of
the recipient, if any;

deleted text begin (9) deleted text end new text begin (10) new text end a list of all financial assistance by all grantors
for the project; and

deleted text begin (10) deleted text end new text begin (11) new text end other information the commissioner may request.

A report must be filed no later than March 1 of each year for
the previous year. The local agency and the Iron Range
Resources and Rehabilitation Board must forward copies of the
reports received by recipients to the commissioner by April 1.

(c) Financial assistance that is excluded from the
definition of "business subsidy" by section 116J.993,
subdivision 3, clauses (4), (5), (8), and (16), is subject to
the reporting requirements of this subdivision, except that the
report of the recipient must include instead:

(1) the type, public purpose, and amount of the financial
assistance, and type of district if the assistance is tax
increment financing;

(2) progress towards meeting goals stated in the assistance
agreement and the public purpose of the assistance;

(3) if the agreement includes job creation, the hourly wage
of each job created with separate bands of wages;

(4) if the agreement includes job creation, the sum of the
hourly wages and cost of health insurance provided by the
employer with separate bands of wages;

(5) the location of the recipient prior to receiving the
assistance; and

(6) other information the grantor requests.

(d) If the recipient does not submit its report, the local
government agency must mail the recipient a warning within one
week of the required filing date. If, after 14 days of the
postmarked date of the warning, the recipient fails to provide a
report, the recipient must pay to the grantor a penalty of $100
for each subsequent day until the report is filed. The maximum
penalty shall not exceed $1,000.

Sec. 24.

Minnesota Statutes 2004, section 116J.994,
subdivision 9, is amended to read:

Subd. 9.

Compilation and summary report.

The Department
of Employment and Economic Development must publish a
compilation and summary of the results of the reports for the
previous two calendar years by December 1 of 2004 and every
other year thereafter. The reports of the government agencies
to the department and the compilation and summary report of the
department must be made available to the public.

The commissioner must coordinate the production of reports
so that useful comparisons across time periods and across
grantors can be made. The commissioner may add other
information to the report as the commissioner deems necessary to
evaluate business subsidies. Among the information in the
summary and compilation report, the commissioner must include:

(1) total amount of subsidies awarded in each development
region of the state;

(2) distribution of business subsidy amounts by size of the
business subsidy;

(3) distribution of business subsidy amounts by time
category;

(4) distribution of subsidies by type and by public
purpose;

(5) percent of all business subsidies that reached their
goals;

(6) percent of business subsidies that did not reach their
goals by two years from the benefit date;

(7) total dollar amount of business subsidies that did not
meet their goals after two years from the benefit date;

(8) percent of subsidies that did not meet their goals and
that did not receive repayment;

(9) list of recipients that have failed to meet the terms
of a subsidy agreement in the past five years and have not
satisfied their repayment obligations;

(10) number of part-time and full-time jobs within separate
bands of wages new text begin for the entire state and for each development
region of the state new text end ; deleted text begin and
deleted text end

(11) benefits paid within separate bands of wages new text begin for the
entire state and for each development region of the state; and
new text end

new text begin (12) number of employees in the entire state and in each
development region of the state who ceased to be employed
because their employers relocated to become eligible for a
business subsidy new text end .

Sec. 25.

Minnesota Statutes 2004, section 116L.03,
subdivision 2, is amended to read:

Subd. 2.

Appointment.

The Minnesota Job Skills
Partnership Board consists of: seven members appointed by the
governor, deleted text begin the chair of the governor's Workforce Development
Council, deleted text end the commissioner of employment and economic
development, the chancellor, or the chancellor's designee, of
the Minnesota State Colleges and Universities, the president, or
the president's designee, of the University of Minnesota, and
two nonlegislator members, one appointed by the Subcommittee on
Committees of the senate Committee on Rules and Administration
and one appointed by the speaker of the house. If the
chancellor or the president of the university makes a
designation under this subdivision, the designee must have
experience in technical education. Four of the appointed
members must be members of the governor's Workforce Development
Council, of whom two must represent organized labor and two must
represent business and industry. One of the appointed members
must be a representative of a nonprofit organization that
provides workforce development or job training services.

Sec. 26.

Minnesota Statutes 2004, section 116L.05, is
amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Use of workforce development funds. new text end

new text begin After March
1 of any fiscal year, the board may use workforce development
funds for the purposes outlined in sections 116L.04, 116L.06,
and 116L.10 to 116L.14, or to provide incumbent worker training
services under section 116L.18 if the following conditions have
been met:
new text end

new text begin (1) the board examines relevant economic indicators,
including the projected number of layoffs for the remainder of
the fiscal year and the next fiscal year, evidence of declining
and expanding industries, the number of initial applications for
and the number of exhaustions of unemployment benefits, job
vacancy data, and any additional relevant information brought to
the board's attention;
new text end

new text begin (2) the board accounts for all allocations made in section
116L.17, subdivision 2;
new text end

new text begin (3) based on the past expenditures and projected revenue,
the board estimates future funding needs for services under
section 116L.17 for the remainder of the current fiscal year and
the next fiscal year;
new text end

new text begin (4) the board determines there will be unspent funds after
meeting the needs of dislocated workers in the current fiscal
year and there will be sufficient revenue to meet the needs of
dislocated workers in the next fiscal year; and
new text end

new text begin (5) the board reports its findings in clauses (1) to (4) to
the chairs of legislative committees with jurisdiction over the
workforce development fund, to the commissioners of revenue and
finance, and to the public.
new text end

Sec. 27.

new text begin [116L.18] SPECIAL INCUMBENT WORKER TRAINING
GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of the special
incumbent worker training grants is to expand opportunities for
businesses and workers to gain new skills that are in demand in
the Minnesota economy. The board shall establish criteria for
incumbent worker grants under this section and may encourage
creative training models, innovative partnerships, and expansion
or replication of promising practices.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this
section, the following terms have the meanings given them.
new text end

new text begin (b) "Incumbent worker" means an individual employed by a
qualifying employer.
new text end

new text begin (c) "Qualifying employer" means a for-profit business or
nonprofit organization in Minnesota with at least one full-time
paid employee. Public sector organizations are not considered
qualifying employers.
new text end

new text begin (d) "Eligible organization" has the meaning given in
section 116L.17.
new text end

new text begin Subd. 3. new text end

new text begin Amount of grants. new text end

new text begin A grant to an eligible
organization may not exceed $400,000.
new text end

new text begin Subd. 4. new text end

new text begin Matching funds. new text end

new text begin The board shall require
matching funds from qualifying employers in the form of funding,
equipment, or faculty.
new text end

new text begin Subd. 5. new text end

new text begin Use of funds. new text end

new text begin Eligible organizations shall use
funds granted under this section for direct training services to
provide a measurable increase in the job-related skills of
participating incumbent workers. Eligible organizations may
also provide basic assessment, counseling, and preemployment
training services requested by the qualifying employer. No
funds may be used for support services as described in section
116L.17, subdivision 4, clause (2).
new text end

new text begin Subd. 6. new text end

new text begin Performance outcome measures. new text end

new text begin The board and the
commissioner of employment and economic development shall
jointly develop performance outcome measures and standards for
this program. The commissioner and board shall consult with
eligible organizations in establishing standards. Measures at a
minimum must include posttraining retention, promotion, and wage
increase. The board and commissioner shall provide a report to
the legislature by March 1 of each year on the previous fiscal
year's program performance. Eligible organizations must provide
performance data in a timely manner for the completion of this
report.
new text end

Sec. 28.

Minnesota Statutes 2004, section 116L.20,
subdivision 1, is amended to read:

Subdivision 1.

Determination and collection of special
assessment.

(a) In addition to amounts due from an employer
under the Minnesota unemployment insurance program, each
employer, except an employer making reimbursements is liable for
a special assessment levied at the rate of deleted text begin seven-hundredths of
one deleted text end new text begin .10 new text end percent per year new text begin for calendar years 2006 and 2007 new text end on all
taxable wages, as defined in section 268.035, subdivision
24. new text begin Beginning January 1, 2008, the special assessment shall be
levied at a rate of .085 percent per year on all taxable wages.
new text end The assessment shall become due and be paid by each employer on
the same schedule and in the same manner as other amounts due
from an employer under section 268.051, subdivision 1.

(b) The special assessment levied under this section shall
be subject to the same requirements and collection procedures as
any amounts due from an employer under the Minnesota
unemployment insurance program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2006.
new text end

Sec. 29.

Minnesota Statutes 2004, section 116L.20,
subdivision 2, is amended to read:

Subd. 2.

Disbursement of special assessment funds.

(a)
The money collected under this section shall be deposited in the
state treasury and credited to the workforce development fund to
provide for employment and training programs. The workforce
development fund is created as a special account in the state
treasury.

(b) All money in the fund not otherwise appropriated or
transferred is appropriated to the Job Skills Partnership Board
for the purposes of section 116L.17 new text begin and as provided for in
paragraph (d) new text end . The board must act as the fiscal agent for the
money and must disburse that money for the purposes of section
116L.17, not allowing the money to be used for any other
obligation of the state. All money in the workforce development
fund shall be deposited, administered, and disbursed in the same
manner and under the same conditions and requirements as are
provided by law for the other special accounts in the state
treasury, except that all interest or net income resulting from
the investment or deposit of money in the fund shall accrue to
the fund for the purposes of the fund.

(c) Reimbursement for costs related to collection of the
special assessment shall be in an amount negotiated between the
commissioner and the United States Department of Labor.

new text begin (d) If the board determines that the conditions of section
116L.05, subdivision 5, have been met, the board may use funds
for the purposes outlined in sections 116L.04, 116L.06, and
116L.10 to 116L.14, or to provide incumbent worker training
services under section 116L.18.
new text end

Sec. 30.

Minnesota Statutes 2004, section 116L.666,
subdivision 4, is amended to read:

Subd. 4.

Purpose; duties of local workforce council.

The
local workforce council is responsible for providing policy
guidance for, and exercising oversight with respect to,
activities conducted by local workforce centers in partnership
with the local unit or units of general local government within
the workforce service area and with the commissioner.

A local workforce center is a location where federal,
state, and local employment and training services are provided
to job seekers and employers.

A local workforce council, in accordance with an agreement
or agreements with the appropriate chief elected official or
officials and the commissioner, shall:

(1) determine procedures for the development of the local
workforce service area plan. The procedures may provide for the
preparation of all or any part of the plan:

(i) by the council;

(ii) by any unit of general local or state government in
the workforce service area, or by an agency of that unit; or

(iii) by any other methods or institutions as may be
provided in the agreement;

(2) select the recipients for local grants and an
administrator of the local workforce service area plan. These
may be the same entity or separate entities and must be chosen
from among the following:

(i) the council;

(ii) a unit of general local or state government in its
workforce service area, or an agency of that unit;

(iii) a nonprofit organization or corporation; or

(iv) any other agreed upon entity;

(3) jointly plan for local collaborative activities
including the transition of public assistance recipients to
employment in the public or private sectors;

(4) provide on-site review and oversight of program
performance;

(5) establish local priorities for service and target
populations;

(6) ensure nonduplication of services and a unified service
delivery system within the workforce service area; deleted text begin and
deleted text end

(7) new text begin ensure that local workforce centers provide meeting
space, free of charge, for meetings of displaced homemaker
programs, established under section 116L.96; and
new text end

new text begin (8) new text end nominate individuals to the governor to consider for
membership on the governor's Workforce Development Council.

Sec. 31.

Minnesota Statutes 2004, section 120A.40, is
amended to read:

120A.40 SCHOOL CALENDAR.

(a) Except for learning programs during summer, flexible
learning year programs authorized under sections 124D.12 to
124D.127, and learning year programs under section 124D.128, a
district must not commence an elementary or secondary school
year before deleted text begin September 1 deleted text end new text begin Labor Day new text end , except as provided under
paragraph (b). Days devoted to teachers' workshops may be held
before deleted text begin September 1 deleted text end new text begin Labor Day new text end . Districts that enter into
cooperative agreements are encouraged to adopt similar school
calendars.

(b) A district may begin the school year on any day before
deleted text begin September 1 deleted text end new text begin Labor Day new text end to accommodate a construction or
remodeling project of $400,000 or more affecting a district
school facility. new text begin A school district that agrees to the same
schedule with a school district in an adjoining state also may
begin the school year before Labor Day as authorized under this
paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2006.
new text end

Sec. 32.

Minnesota Statutes 2004, section 129D.02,
subdivision 3, is amended to read:

Subd. 3.

Compensation.

Members shall be compensated deleted text begin at
the rate of $35 per day spent on board activities. In addition,
members shall receive reimbursement for expenses in the same
manner and amount as state employees. Employees of the state or
its political subdivisions shall not be entitled to the per
diem, but they shall suffer no loss in compensation or benefits
as a result of service on the board. Members not entitled to
the per diem shall receive expenses as provided in this
subdivision unless the expenses are reimbursed from another
source deleted text end new text begin as provided in section 15.0575, subdivision 3 new text end .

Sec. 33.

Minnesota Statutes 2004, section 161.1419,
subdivision 2, is amended to read:

Subd. 2.

Members.

(a) The commission shall be composed
of 15 members of whom:

(1) one shall be appointed by the commissioner of
transportation;

(2) one shall be appointed by the commissioner of natural
resources;

(3) one shall be appointed by the deleted text begin commissioner of
employment and economic development deleted text end new text begin director of Explore
Minnesota Tourism new text end ;

(4) one shall be appointed by the commissioner of
agriculture;

(5) one shall be appointed by the director of the Minnesota
Historical Society;

(6) two shall be members of the senate to be appointed by
the Committee on Committees;

(7) two shall be members of the house of representatives to
be appointed by the speaker;

(8) one shall be the secretary appointed pursuant to
subdivision 3; and

(9) five shall be citizen members appointed by five citizen
committees established by the members appointed under clauses
(1) to (8), with each citizen committee established within and
representing each of the following geographic segments along the
Mississippi River:

(i) Lake Itasca to but not including the city of Grand
Rapids;

(ii) Grand Rapids to but not including the city of
Brainerd;

(iii) Brainerd to but not including the city of Elk River;

(iv) Elk River to but not including the city of Hastings;
and

(v) Hastings to the Iowa border.

Each citizen committee member shall be a resident of the
geographic segment that the committee and member represents.

(b) The members of the commission shall serve for a term
expiring at the close of each regular session of the legislature
and until their successors are appointed. Successor members
shall be appointed by the same appointing authorities. Members
may be reappointed. Any vacancy shall be filled by the
appointing authority. The commissioner of transportation, the
commissioner of natural resources, and the director of the
Minnesota Historical Society shall be ex officio members, and
shall be in addition to the 15 members heretofore provided for.
Immediately upon making the appointments to the commission the
appointing authorities shall so notify the Mississippi River
Parkway Commission, hereinafter called the National Commission,
giving the names and addresses of the members so appointed.

Sec. 34.

Minnesota Statutes 2004, section 161.1419, is
amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Gifts, grants, and endowments. new text end

new text begin The commission
may accept gifts of money, property, or services; may apply for
and accept grants from the United States, the state, a
subdivision of the state, or a person for any of its purposes;
may enter into an agreement required in connection with it; and
may hold, use, and dispose of the money, property, or services
in accordance with the terms of the gift, grant, or agreement
relating to it. The commission may also make grants, gifts, and
bequests of money, property, or services and enter into
contracts to carry out the same. The gift acceptance procedures
of sections 16A.013 to 16A.016 do not apply to this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 35.

Minnesota Statutes 2004, section 169.733, is
amended to read:

169.733 WHEEL FLAPS ON TRUCK AND TRAILER.

Subdivision 1.

Vehicles generally.

Every truck,
truck-tractor, trailer, semitrailer, pole trailer, and rear-end
dump truck, excepting rear-end dump farm trucks deleted text begin and military
vehicles of the United States, shall deleted text end new text begin , must new text end be provided with
wheel flaps or other suitable protection above and behind the
rearmost wheels of the vehicle or combination of vehicles to
prevent, as far as practicable, deleted text begin such deleted text end new text begin the new text end wheels from throwing
dirt, water, or other materials on the windshields of new text begin following
new text end vehicles deleted text begin which follow deleted text end . deleted text begin Such deleted text end new text begin The new text end flaps or protectors deleted text begin shall
deleted text end new text begin must new text end be at least as wide as the tires they are protecting
and deleted text begin shall deleted text end have a ground clearance of not more than deleted text begin one-fifth of
the horizontal distance from the center of the rearmost axle to
the flap under any conditions of loading or operation of the
motor deleted text end new text begin nine inches from the ground when the new text end vehicle new text begin is empty new text end .

Subd. 2.

Vehicle with conveyor belt.

For a dump truck or
truck with a rigid box fastened to its frame and having a
conveyor belt or chain in the bottom of the vehicle deleted text begin which deleted text end new text begin that
new text end moves the cargo to the rear end of the vehicle, the flaps deleted text begin shall
deleted text end new text begin must new text end be mounted as far to the rear of the vehicle as practicable
and deleted text begin shall deleted text end have a ground clearance of not more than 18 inches
when the vehicle is loaded.

Subd. 3.

Bottom-dump vehicle.

new text begin In addition to meeting the
requirements of subdivision 1, new text end a bottom-dump cargo vehicle
transporting sand, gravel, aggregate, dirt, lime rock, silica,
or similar material must be equipped with deleted text begin flaps that are mounted
to the rear of the axles, cover the entire width of the vehicle,
and deleted text end new text begin a center flap between the wheel flaps, which must new text end have a
ground clearance of six inches or less when the vehicle is fully
loaded.

Subd. 4.

Alternative requirements.

If the motor vehicle
is so designed and constructed that the above requirements are
accomplished by means of body construction or other means of
enclosure, then no deleted text begin such deleted text end protectors or flaps deleted text begin shall be deleted text end new text begin are
new text end required.

Subd. 5.

Extended flaps.

If the rear wheels are not
covered at the top by fenders, body or other parts of the
vehicle, the flap or other protective means deleted text begin shall deleted text end new text begin must new text end be
extended at least to a point directly above the center of the
rearmost axle.

deleted text begin Subd. 6. deleted text end

deleted text begin Lamps or wiring. deleted text end

deleted text begin Lamps or wiring shall not be
attached to fender flaps.
deleted text end

Sec. 36.

Minnesota Statutes 2004, section 169.824,
subdivision 2, is amended to read:

Subd. 2.

Gross vehicle weight of all axles.

(a)
Notwithstanding the provisions of section 169.85, the gross
vehicle weight of all axles of a vehicle or combination of
vehicles shall not exceed:

(1) 80,000 pounds for any vehicle or combination of
vehicles on all state trunk highways as defined in section
160.02, subdivision 29, and for all routes designated under
section 169.832, subdivision 11;

(2) new text begin 88,000 pounds for any vehicle or combination of
vehicles with six or more axles while exclusively engaged in
hauling livestock on all state trunk highways other than
interstate highways, if the vehicle has a permit under section
169.86, subdivision 5, paragraph (k);
new text end

new text begin (3) new text end 73,280 pounds for any vehicle or combination of
vehicles with five axles or less on all routes, other than state
trunk highways and routes that are designated under section
169.832, subdivision 11 new text begin , except that a vehicle needing
reasonable access to a terminal or facilities for food, fuel,
repairs, and rest, located within three miles of a ten-ton
route, may not exceed 80,000 pounds. "Terminal" means any
location where freight either originates, terminates, or is
handled in the transportation process, or where commercial motor
carriers maintain operating facilities new text end ; and

deleted text begin (3) deleted text end new text begin (4) new text end 80,000 pounds for any vehicle or combination of
vehicles with six or more axles on all routes, other than state
trunk highways and routes that are designated under section
169.832, subdivision 11.

(b) The maximum weights specified in this section for five
consecutive axles shall not apply to a four-axle ready-mix
concrete truck which was equipped with a fifth axle prior to
June 1, 1981. The maximum gross weight on four or fewer
consecutive axles of vehicles excepted by this clause shall not
exceed any maximum weight specified for four or fewer
consecutive axles in this section.

new text begin EFFECTIVE DATE. new text end

new text begin The language in paragraph (a), clause
(2), is effective August 1, 2006.
new text end

Sec. 37.

Minnesota Statutes 2004, section 169.85,
subdivision 1, is amended to read:

Subdivision 1.

Driver to stop for weighing.

(a) The
driver of a vehicle that has been lawfully stopped may be
required by an officer to submit the vehicle and load to a
weighing by means of portable or stationary scales.

(b) In addition, the officer may require that the vehicle
be driven to the nearest available scales, but only if:

(1) the distance to the scales is no further than five
miles, or if the distance from the point where the vehicle is
stopped to the vehicle's destination is not increased by more
than ten miles as a result of proceeding to the nearest
available scales; and

(2) if the vehicle is a commercial motor vehicle, no more
than two other commercial motor vehicles are waiting to be
inspected at the scale.

(c) Official traffic control devices as authorized by
section 169.06 may be used to direct the driver to the nearest
scale.

(d) When a truck weight enforcement operation is conducted
by means of portable or stationary scales deleted text begin and deleted text end new text begin , new text end signs giving
notice of the operation deleted text begin are deleted text end new text begin must be new text end posted within the highway
right-of-way and adjacent to the roadway within two miles of the
operation deleted text begin , deleted text end new text begin . new text end The driver of a truck or combination of vehicles
registered for or weighing in excess of 12,000 pounds shall
proceed to the scale site and submit the vehicle to weighing and
inspection.

Sec. 38.

Minnesota Statutes 2004, section 169.85,
subdivision 6, is amended to read:

Subd. 6.

Officer defined.

When used in this section, the
word "officer" means a deleted text begin peace officer or deleted text end new text begin member of the State
Patrol, new text end an employee of the Department of Public Safety described
in section 299D.06 new text begin , or a peace officer or person under the
officer's direction and control employed by a local unit of
government who is trained in weight enforcement by the
Department of Public Safety new text end .

Sec. 39.

new text begin [169.864] SPECIAL PAPER PRODUCTS VEHICLE
PERMIT.
new text end

new text begin Subdivision 1. new text end

new text begin Special paper products vehicle
permit. new text end

new text begin The commissioner may issue a permit for a vehicle that
meets the following requirements:
new text end

new text begin (1) is a combination of vehicles, including a truck-tractor
and a semi-trailer drawing one additional semitrailer, which may
be equipped with an auxiliary dolly, and no semitrailer used in
the three-vehicle combination has an overall length in excess of
28-1/2 feet;
new text end

new text begin (2) has a maximum gross vehicle weight of 108,000 pounds;
new text end

new text begin (3) complies with the axle weight limits in section 169.824
or with the federal bridge formula for axle groups not described
in that section;
new text end

new text begin (4) complies with the tire weight limits in section 169.823
or the tire manufacturers' recommended load, whichever is less;
new text end

new text begin (5) is operated only in this state on Trunk Highway marked
2 between Grand Rapids and the port of Duluth; on Trunk Highway
marked 169 between Grand Rapids and its junction with Trunk
Highway marked 53; and on Trunk Highway marked 53 between
Virginia and the port of Duluth; and
new text end

new text begin (6) the seasonal weight increases authorized under section
169.826, subdivision 1, do not apply.
new text end

new text begin Subd. 2. new text end

new text begin Two-unit vehicle. new text end

new text begin The commissioner may issue a
permit for a vehicle that meets the following requirements:
new text end

new text begin (1) is a combination of vehicles consisting of a
truck-tractor and a single semitrailer that may exceed 48 feet,
but not 53 feet, if the distance from the kingpin to the
centerline of the rear axle group of the semitrailer does not
exceed 43 feet;
new text end

new text begin (2) has a maximum gross vehicle weight of 90,000 pounds;
new text end

new text begin (3) has a maximum gross vehicle weight of 98,000 pounds
during the time when seasonal weight increases authorized under
section 169.826, subdivision 1, are in effect;
new text end

new text begin (4) complies with the axle weight limits in section 169.824
or with the federal bridge formula for axle groups not described
in that section;
new text end

new text begin (5) complies with the tire weight limits in section 169.823
or the tire manufacturers' recommended load, whichever is less;
and
new text end

new text begin (6) is operated only on the highways specified in
subdivision 1, clause (5).
new text end

new text begin Subd. 3. new text end

new text begin Restrictions. new text end

new text begin Vehicles issued permits under
subdivisions 1 and 2 must comply with the following restrictions:
new text end

new text begin (1) the vehicle must be operated in compliance with
seasonal load restrictions under section 169.87;
new text end

new text begin (2) the vehicle may not be operated on the interstate
highway system; and
new text end

new text begin (3) the vehicle may be operated on streets or highways
under the control of local authorities only upon the approval of
the local authority; however, vehicles may have reasonable
access to terminals and facilities for food, fuel, repairs, and
rest and for continuity of route within one mile of the national
network as provided by section 169.81, subdivision 3, and by
Code of Federal Regulations, title 23, part 658.19.
new text end

new text begin Subd. 4. new text end

new text begin Permit fee. new text end

new text begin Vehicle permits issued under
subdivision 1, clause (1), must be annual permits. The fee is
$850 for each vehicle and must be deposited in the trunk highway
fund. An amount sufficient to administer the permit program is
appropriated from the trunk highway fund to the commissioner for
the costs of administering the permit program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the latter of
August 1, 2006, or the date on which the commissioner determines
that building permits have been issued for the construction of a
new pulp and paper manufacturing facility at Grand Rapids.
new text end

Sec. 40.

Minnesota Statutes 2004, section 176.136,
subdivision 1a, is amended to read:

Subd. 1a.

Relative value fee schedule.

new text begin (a) new text end The liability
of an employer for services included in the medical fee schedule
is limited to the maximum fee allowed by the schedule in effect
on the date of the medical service, or the provider's actual
fee, whichever is lower. The medical fee schedule effective on
October 1, 1991, remains in effect until the commissioner adopts
a new schedule by permanent rule. The commissioner shall adopt
permanent rules regulating fees allowable for medical,
chiropractic, podiatric, surgical, and other health care
provider treatment or service, including those provided to
hospital outpatients, by implementing a relative value fee
schedule to be effective on October 1, 1993. The commissioner
may adopt by reference the relative value fee schedule adopted
for the federal Medicare program or a relative value fee
schedule adopted by other federal or state agencies. The
relative value fee schedule must contain reasonable
classifications including, but not limited to, classifications
that differentiate among health care provider disciplines. The
conversion factors for the original relative value fee schedule
must reasonably reflect a 15 percent overall reduction from the
medical fee schedule most recently in effect. The reduction
need not be applied equally to all treatment or services, but
must represent a gross 15 percent reduction.

new text begin (b) Effective October 1, 2005, the commissioner shall
remove all scaling factors from the relative value units and
establish four separate conversion factors according to
paragraphs (c) and (d) for each of the following parts of
Minnesota Rules:
new text end

new text begin (1) Medical/surgical services in Minnesota Rules, part
5221.4030, as defined in part 5221.0700, subpart 3, item C,
subitem 2;
new text end

new text begin (2) Pathology and laboratory services in Minnesota Rules,
part 5221.4040, as defined in part 5221.0700, subpart 3, item C,
subitem 3;
new text end

new text begin (3) Physical medicine and rehabilitation services in
Minnesota Rules, part 5221.4050, as defined in part 5221.0700,
subpart 3, item C, subitem 4; and
new text end

new text begin (4) Chiropractic services in Minnesota Rules, part
5221.4060, as defined in part 5221.0700, subpart 3, item C,
subitem 5.
new text end

new text begin (c) The four conversion factors established under paragraph
(b) shall be calculated so that there is no change in each
maximum fee for each service under the current fee schedule,
except as provided in paragraphs (d) and (e).
new text end

new text begin (d) By October 1, 2006, the conversion factor for
chiropractic services described in paragraph (b), clause (4),
shall be increased to equal 72 percent of the conversion factor
for medical/surgical services described in paragraph (b), clause
(1). Beginning October 1, 2005, the increase in chiropractic
conversion factor shall be phased in over two years by
approximately equal percentage point increases.
new text end

new text begin (e) When adjusting the conversion factors in accordance
with paragraph (g) on October 1, 2005, and October 1, 2006, the
commissioner may adjust by no less than zero, all of the
conversion factors as necessary to offset any overall increase
in payments under the fee schedule resulting from the increase
in the chiropractic conversion factor.
new text end

new text begin (f) The commissioner shall give notice of the relative
value units and conversion factors established under paragraphs
(b), (c), and (d) according to the procedures in section 14.386,
paragraph (a). The relative value units and conversion factors
established under paragraphs (b), (c), and (d) are not subject
to expiration under section 14.386, paragraph (b).
new text end

new text begin (g) new text end After permanent rules have been adopted to implement
this section, the conversion factors must be adjusted annually
on October 1 by no more than the percentage change computed
under section 176.645, but without the annual cap provided by
that section. The commissioner shall annually give notice in
the State Register of the adjusted conversion factors and may
also give annual notice of any additions, deletions, or changes
to the relative value units or service codes adopted by the
federal Medicare program. The relative value units may be
statistically adjusted in the same manner as for the original
workers' compensation relative value fee schedule. The notices
of the adjusted conversion factors and additions, deletions, or
changes to the relative value units and service codes is in lieu
of the requirements of chapter 14. The commissioner shall
follow the requirements of section 14.386, paragraph (a). The
annual adjustments to the conversion factors and the medical fee
schedules adopted under this section, including all previous fee
schedules, are not subject to expiration under section 14.386,
paragraph (b).

Sec. 41.

new text begin [181.722] MISREPRESENTATION OF EMPLOYMENT
RELATIONSHIP PROHIBITED.
new text end

new text begin Subdivision 1. new text end

new text begin Prohibition. new text end

new text begin No employer shall
misrepresent the nature of its employment relationship with its
employees to any federal, state, or local government unit; to
other employers; or to its employees. An employer misrepresents
the nature of its employment relationship with its employees if
it makes any statement regarding the nature of the relationship
that the employer knows or has reason to know is untrue and if
it fails to report individuals as employees when legally
required to do so.
new text end

new text begin Subd. 2. new text end

new text begin Agreements to misclassify prohibited. new text end

new text begin No
employer shall require or request any employee to enter into any
agreement, or sign any document, that results in
misclassification of the employee as an independent contractor
or otherwise does not accurately reflect the employment
relationship with the employer.
new text end

new text begin Subd. 3. new text end

new text begin Determination of employment relationship. new text end

new text begin For
purposes of this section, the nature of an employment
relationship is determined using the same tests and in the same
manner as employee status is determined under the applicable
workers' compensation and unemployment insurance program laws
and rules.
new text end

new text begin Subd. 4. new text end

new text begin Civil remedy. new text end

new text begin A construction worker, as defined
in section 179.254, who is not an independent contractor and has
been injured by a violation of this section, may bring a civil
action for damages against the violator. If the construction
worker injured is an employee of the violator of this section,
the employee's representative, as defined in section 179.01,
subdivision 5, may bring a civil action for damages against the
violator on behalf of the employee. The court may award
attorney fees, costs, and disbursements to a construction worker
recovering under this section.
new text end

new text begin Subd. 5. new text end

new text begin Reporting of violations. new text end

new text begin Any court finding that
a violation of this section has occurred shall transmit a copy
of its findings of fact and conclusions of law to the
commissioner of labor and industry. The commissioner of labor
and industry shall report the finding to relevant state and
federal agencies, including the commissioner of commerce, the
commissioner of employment and economic development, the
commissioner of revenue, the federal Internal Revenue Service,
and the United States Department of Labor.
new text end

Sec. 42.

Minnesota Statutes 2004, section 183.41, is
amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Annual permit. new text end

new text begin The commissioner shall issue an
annual permit to a boat for the purpose of carrying passengers
for hire on the inland waters of the state provided the boat
satisfies the inspection requirements of this section. A boat
subject to inspection under this chapter shall be registered
with the Division of Boiler Inspection and shall be inspected
before a permit may be issued.
new text end

Sec. 43.

Minnesota Statutes 2004, section 183.411,
subdivision 2a, is amended to read:

Subd. 2a.

Inspection fees.

The deleted text begin commissioner may set fees
deleted text end new text begin fee new text end for inspecting traction engines, show boilers, and show
engines new text begin shall be the hourly rate new text end pursuant to section
deleted text begin 16A.1285 deleted text end new text begin 183.545, subdivision 3a new text end .

Sec. 44.

Minnesota Statutes 2004, section 183.411,
subdivision 3, is amended to read:

Subd. 3.

Licenses.

A license to operate steam farm
traction engines, portable and stationary show engines and
portable and stationary show boilers shall be issued to an
applicant who:

deleted text begin (a) deleted text end new text begin (1) new text end is 18 years of age or older;

deleted text begin (b) deleted text end new text begin (2) new text end has a licensed second class or higher class
engineer or steam traction (hobby) engineer sign the affidavit
attesting to the applicant's competence in operating said
devices;

deleted text begin (c) deleted text end new text begin (3) new text end passes a written test for competence in operating
said devices;

deleted text begin (d) deleted text end new text begin (4) new text end has at least 25 hours of actual operating
experience on said devices; and

deleted text begin (e) deleted text end new text begin (5) new text end pays the required fee.

A license shall be valid for the lifetime of the licensee.
A onetime fee deleted text begin set by the commissioner deleted text end pursuant to section
deleted text begin 16A.1285 deleted text end new text begin 183.545, subdivision 4 new text end , shall be charged for the
license.

Sec. 45.

Minnesota Statutes 2004, section 183.42, is
amended to read:

183.42 INSPECTION deleted text begin EACH YEAR deleted text end new text begin AND REGISTRATION new text end .

new text begin Subdivision 1. new text end

new text begin Inspection. new text end

Every owner, lessee, or other
person having charge of boilers deleted text begin , deleted text end new text begin or new text end pressure vessels deleted text begin , or any
boat deleted text end subject to inspection under this chapter shall cause them
to be inspected by the Division of Boiler Inspection.
Boilers deleted text begin and boats deleted text end subject to inspection under this chapter must
be inspected at least annually and pressure vessels inspected at
least every two years except as provided under section
183.45. deleted text begin A person who fails to have the inspection required by
this section shall pay to the commissioner a penalty in the
amount of the cost of inspection up to a maximum of $1,000. deleted text end new text begin The
commissioner shall assess a $250 penalty per applicable boiler
or pressure vessel for failure to have the inspection required
by this section and may seal the boiler or pressure vessel for
refusal to allow an inspection as required by this section.
new text end

new text begin Subd. 2. new text end

new text begin Registration. new text end

new text begin Every owner, lessee, or other
person having charge of boilers or pressure vessels subject to
inspection under this chapter shall register said objects with
the Division of Boiler Inspection. The registration shall be
renewed annually and is applicable to each object separately.
The fee for registration of a boiler or pressure vessel shall be
pursuant to section 183.545, subdivision 10. The Division of
Boiler Inspection may issue a billing statement for each boiler
and pressure vessel on record with the division, and may
determine a monthly schedule of billings to be followed for
owners, lessees, or other persons having charge of a boiler or
pressure vessel subject to inspection under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Certificate of registration. new text end

new text begin The Division of
Boiler Inspection shall issue a certificate of registration that
lists the boilers and pressure vessels at the location,
expiration date of the certificate of registration, last
inspection date of each boiler and pressure vessel, and maximum
allowable working pressure for each boiler and pressure vessel.
The commissioner may make an electronic certificate of
registration available to be printed by the owner, lessee, or
other person having charge of the boiler or pressure vessel.
new text end

Sec. 46.

Minnesota Statutes 2004, section 183.44,
subdivision 1, is amended to read:

Subdivision 1.

Masters deleted text begin and pilots deleted text end .

The deleted text begin Division of
Boiler Inspection deleted text end new text begin commissioner or the commissioner's designee
new text end shall examine all masters deleted text begin and pilots deleted text end of boats and vessels
carrying passengers for hire on the inland waters of the state
as to their qualifications and fitness. If found deleted text begin trustworthy
deleted text end new text begin qualified new text end and competent to perform their duties as a master deleted text begin or
pilot deleted text end new text begin of a boat carrying passengers for hire, new text end they shall be
deleted text begin given deleted text end new text begin issued new text end a deleted text begin certificate deleted text end new text begin license new text end authorizing them to act as
such on the inland waters of the state. new text begin The license shall be
renewed annually. Fees for the original issue and renewal of
the license authorized under this section shall be pursuant to
section 183.545, subdivision 2.
new text end

Sec. 47.

Minnesota Statutes 2004, section 183.51,
subdivision 2, is amended to read:

Subd. 2.

Applications.

Any person who desires an
engineer's license shall deleted text begin make deleted text end new text begin submit new text end a written application, on
blanks furnished by the deleted text begin inspector. The person shall also
successfully pass a written examination for such grade of
license applied for deleted text end new text begin commissioner or designee, at least 15 days
before the requested exam date. The application is valid for
one year from the date the commissioner or designee received the
application new text end .

Sec. 48.

Minnesota Statutes 2004, section 183.51, is
amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Examinations. new text end

new text begin Each applicant for a license
must pass an examination approved by the commissioner. The
examinations shall be of sufficient scope to establish the
competency of the applicant to operate a boiler of the
applicable license class and grade.
new text end

Sec. 49.

Minnesota Statutes 2004, section 183.545, is
amended to read:

183.545 FEES FOR INSPECTION.

Subdivision 1.

Fee amount; vessels new text begin operated on inland
waters new text end .

The fees for the inspection of the hull, boiler,
machinery, and equipments of vessels deleted text begin are to be set by the
commissioner pursuant to section 16A.1285, for vessels of 50
tons burden or over and vessels of less than 50 tons
burden. deleted text end new text begin operated on inland waters and that carry passengers for
hire are as follows:
new text end

new text begin (1) annual operating permit and safety inspections shall be
$200; and
new text end

new text begin (2) other inspections, including dry-dock inspections, boat
stability tests, and plan reviews, are billed at the hourly rate
set in subdivision 3a.
new text end

Subd. 2.

Fee amounts; masters deleted text begin and pilots deleted text end .

The
deleted text begin commissioner shall, pursuant to section 16A.1285, set
the deleted text end new text begin license and application new text end fee for deleted text begin an examination of an
applicant for deleted text end a master's deleted text begin or pilot's deleted text end license new text begin is $50 new text end , deleted text begin for an deleted text end new text begin or
$20 if the applicant possesses a valid, unlimited, current
United States Coast Guard master's license. The new text end annual renewal
of a master's deleted text begin or a pilot's deleted text end license deleted text begin , and for an deleted text end new text begin is $20. The
new text end annual renewal if paid later than deleted text begin ten deleted text end new text begin 30 new text end days after
expiration new text begin is $35. The fee for replacement of a current, valid
license is $20 new text end .

Subd. 3.

new text begin boiler and pressure vessel new text end inspection fees.

The
fees for the annual inspection of boilers and biennial
inspection of pressure vessels are deleted text begin to be set by the commissioner
pursuant to section 16A.1285, for deleted text end new text begin as follows new text end :

deleted text begin (a) deleted text end new text begin (1) new text end boiler inaccessible for internal inspection new text begin , $55 new text end ;

deleted text begin (b) deleted text end new text begin (2) new text end boiler accessible for internal inspection new text begin , $55 new text end ;

deleted text begin (c) deleted text end new text begin (3) new text end boiler internal inspection over 2,000 square feet
heating surface new text begin shall be billed at the hourly rate set in
subdivision 3a new text end ;

deleted text begin (d) boiler internal inspection over 4,000 square feet
heating surface;
deleted text end

deleted text begin (e) boiler internal inspection over 10,000 square feet
heating surface;
deleted text end

deleted text begin (f) deleted text end new text begin (4) new text end boiler accessible for internal inspection requiring
one-half day or more of inspection time shall be billed at the
deleted text begin established shop inspection fee deleted text end new text begin hourly new text end rate new text begin set in subdivision
3a new text end ;

deleted text begin (g) deleted text end new text begin (5) new text end pressure vessel for internal inspection via
manhole new text begin , $35 new text end ; and

deleted text begin (h) deleted text end new text begin (6) new text end pressure vessel inaccessible for internal
inspection new text begin , $35 new text end .

deleted text begin An additional fee based on the scale of fees applicable to
an inspection shall be charged when it is necessary to make a
special trip for a hydrostatic test of a boiler or pressure
vessel.
deleted text end

new text begin Subd. 3a. new text end

new text begin Hourly rate. new text end

The deleted text begin commissioner shall, pursuant
to section 16A.1285, set shop inspection fees deleted text end new text begin hourly rate for an
inspection not set elsewhere in this chapter is $80 per hour new text end .
Inspection time includes all time related to the deleted text begin shop
deleted text end inspection. new text begin Travel time, billed at the hourly rate, and travel
expenses shall be billed for shop inspections, triennial audits,
boat stability tests, hydrostatic tests of a boiler or pressure
vessel, or any other inspection or consultation requiring a
special trip.
new text end

Subd. 4.

deleted text begin applicants deleted text end new text begin boiler engineer license new text end fees.

deleted text begin The
commissioner shall, pursuant to section 16A.1285, set the fee
for an examination of an applicant deleted text end For the following licenses new text begin ,
the nonrefundable license and application fee is new text end :

deleted text begin (a) deleted text end new text begin (1) new text end chief engineer's license new text begin , $50 new text end ;

deleted text begin (b) deleted text end new text begin (2) new text end first class engineer's license new text begin , $50 new text end ;

deleted text begin (c) deleted text end new text begin (3) new text end second class engineer's license new text begin , $50 new text end ;

deleted text begin (d) deleted text end new text begin (4) new text end special engineer's license new text begin , $20 new text end ; new text begin and
new text end

deleted text begin (e) deleted text end new text begin (5) new text end traction new text begin or hobby boiler new text end engineer's license deleted text begin ; and deleted text end new text begin ,
$50.
new text end

deleted text begin (f) pilot's license.
deleted text end

deleted text begin If an applicant, after an examination, is entitled to
receive a license, it shall be issued without the payment of any
additional charge. Any license so issued expires one year after
the date of its issuance. deleted text end An engineer's license may be renewed
upon application deleted text begin therefor deleted text end and deleted text begin the deleted text end payment of an annual renewal
fee deleted text begin as set by the commissioner pursuant to section 16A.1285 deleted text end new text begin of
$20 new text end . new text begin The annual renewal, if paid later than 30 days after
expiration, is $35. The fee for replacement of a current, valid
license is $20.
new text end

Subd. 6.

National board inspectors.

The fee for an
examination of an applicant for a National Board of Boiler and
Pressure Vessels Inspectors commission deleted text begin shall be set by the
commissioner pursuant to section 16A.1285 deleted text end new text begin is $100 new text end .

Subd. 7.

Nuclear endorsement.

The fee for each
examination of an applicant for a National Board of Boiler and
Pressure Vessels commissioned inspectors nuclear endorsement
deleted text begin shall be set by the commissioner pursuant to section 16A.1285 deleted text end new text begin is
$100 new text end .

Subd. 8.

Certificate of competency.

The fee for issuance
of the original state of Minnesota certificate of competency for
inspectors deleted text begin shall be set by the commissioner pursuant to section
16A.1285 deleted text end new text begin is $50 new text end . This fee is waived for inspectors who paid the
examination fee. The fee for an annual renewal of the state of
Minnesota certificate of competency deleted text begin shall be set by the
commissioner pursuant to section 16A.1285 deleted text end new text begin is $35 new text end , and is due
January 1 of each year. new text begin The fee for replacement of a current,
valid license is $35.
new text end

Subd. 9.

Deposit of fees.

Fees received under this
section deleted text begin and section 183.57 deleted text end must be deposited in the state
treasury and credited to the general fund.

new text begin Subd. 10. new text end

new text begin Boiler and pressure vessel registration
fee. new text end

new text begin The annual registration fee for boilers and pressure
vessels in use and required to be inspected per section 183.42
shall be $10 per boiler and pressure vessel.
new text end

Sec. 50.

Minnesota Statutes 2004, section 183.57, is
amended to read:

183.57 REPORT OF INSURER; EXEMPTION FROM INSPECTION.

Subdivision 1.

Report required.

Any insurance company
insuring boilers and pressure vessels in this state shall deleted text begin make a
written deleted text end new text begin file a new text end report deleted text begin thereof deleted text end showing the date of inspection,
the name of the person making the inspection, the condition of
the boiler or pressure vessel as disclosed by the inspection,
whether the deleted text begin same is deleted text end new text begin boiler was new text end operated by a properly licensed
engineer, deleted text begin and deleted text end whether a policy of insurance has been issued by
the company with reference to the boiler or pressure vessel new text begin , and
other information as directed by the chief boiler inspector new text end .
Within deleted text begin 15 deleted text end new text begin 21 new text end days after the inspection, the insurance company
shall deleted text begin mail a copy of deleted text end new text begin file new text end the report deleted text begin to deleted text end new text begin with new text end the chief boiler
inspector deleted text begin and deleted text end new text begin or designee. The insurer shall provide new text end a copy of
the report to the person, firm, or corporation owning or
operating the new text begin inspected new text end boiler or pressure vessel deleted text begin inspected deleted text end .
Such report shall be made annually for boilers and biennially
for pressure vessels.

Subd. 2.

Exemption.

Every boiler or pressure vessel as
to which any insurance company authorized to do business in this
state has issued a policy of insurance, after the inspection
thereof, is exempt from inspection new text begin by the department new text end made under
sections 183.375 to 183.62, while the same continues to be
insured new text begin and provided it continues to be inspected in accordance
with the inspection schedule set forth in sections 183.42 and
183.45, new text end and the person, firm, or corporation owning or operating
the same has an unexpired certificate of deleted text begin exemption from
inspection, issued by the chief boiler
inspector deleted text end new text begin registration new text end . deleted text begin The fee set by the commissioner
pursuant to section 16A.1285, on the first object inspected and
on each object thereafter shall apply to each exempt object. A
certificate of exemption expires one year from date of issue.
The certificate of exemption shall be posted in a conspicuous
place near the boiler or pressure vessel or in the plant office
or boiler room described therein and to which it relates. Every
insurance company shall give written notice to the chief boiler
inspector of the cancellation or expiration of every policy of
insurance issued by it with reference to policies in this state,
and the cause or reason for the cancellation or expiration.
These notices of cancellation or expiration shall show the date
of the policy and the date when the cancellation has or will
become effective.
deleted text end

deleted text begin Subd. 4. deleted text end

deleted text begin Certificate of exemption. deleted text end

deleted text begin The Division of
Boiler Inspection may issue a billing and exemption certificate
for each boiler and pressure vessel which the division records
indicate shall be or has been inspected by an insurance company
which is providing coverage for the boilers and pressure
vessels. The division may determine the monthly schedule of the
billings to be followed for each business insured.
deleted text end

new text begin Subd. 5. new text end

new text begin Notice of insurance coverage. new text end

new text begin The insurer shall
notify the commissioner or designee in writing of its policy to
insure and inspect boilers and pressure vessels at a location
within 30 days of receipt of notification from the insured that
a boiler or pressure vessel is present at an insured location.
The insurer must also provide a duplicate of the notification to
the insured.
new text end

new text begin Subd. 6. new text end

new text begin Notice of discontinued coverage. new text end

new text begin The insurer
shall notify the commissioner or designee in writing, within 30
days of the effective date, of the discontinuation of insurance
coverage of the boilers and pressure vessels at a location and
the cause or reason for the discontinuation if the insurer has
received notice from the insured that a boiler or pressure
vessel is present at an insured location, as provided under
subdivision 5. This notice shall show the effective date when
the discontinued policy takes effect.
new text end

new text begin Subd. 7. new text end

new text begin Penalties. new text end

new text begin The commissioner shall assess upon
the insurer a $50 penalty, per applicable boiler and pressure
vessel, for failing to submit an inspection report or notify the
commissioner of insurance coverage or discontinuation of
insurance coverage as set forth in this section. The
commissioner shall assess upon the insurer a penalty of $100,
per applicable boiler and pressure vessel, for failing to
conduct the required in-service inspection within 120 days after
the inspection was due in accordance with section 183.42. The
penalties in this subdivision may only be assessed for notice,
reports, and inspections required during the period that the
insurance coverage was in effect and for which the insurer has
received notice from the insured that a boiler or pressure
vessel is present at an insured location, as provided under
subdivision 5.
new text end

Sec. 51.

Minnesota Statutes 2004, section 216C.41,
subdivision 2, is amended to read:

Subd. 2.

Incentive payment; appropriation.

(a) Incentive
payments must be made according to this section to (1) a
qualified on-farm biogas recovery facility, (2) the owner or
operator of a qualified hydropower facility or qualified wind
energy conversion facility for electric energy generated and
sold by the facility, (3) a publicly owned hydropower facility
for electric energy that is generated by the facility and used
by the owner of the facility outside the facility, or (4) the
owner of a publicly owned dam that is in need of substantial
repair, for electric energy that is generated by a hydropower
facility at the dam and the annual incentive payments will be
used to fund the structural repairs and replacement of
structural components of the dam, or to retire debt incurred to
fund those repairs.

(b) Payment may only be made upon receipt by the
commissioner of deleted text begin finance deleted text end new text begin commerce new text end of an incentive payment
application that establishes that the applicant is eligible to
receive an incentive payment and that satisfies other
requirements the commissioner deems necessary. The application
must be in a form and submitted at a time the commissioner
establishes.

(c) There is annually appropriated from the deleted text begin general fund
deleted text end new text begin renewable development account under section 116C.779 new text end to the
commissioner of commerce sums sufficient to make the payments
required under this section, deleted text begin other than deleted text end new text begin in addition to new text end the
amounts funded by the renewable development account as specified
in subdivision 5a.

Sec. 52.

Minnesota Statutes 2004, section 216C.41,
subdivision 5, is amended to read:

Subd. 5.

Amount of payment; wind facilities limit.

(a)
An incentive payment is based on the number of kilowatt hours of
electricity generated. The amount of the payment is:

(1) for a facility described under subdivision 2, paragraph
(a), clause (4), 1.0 cent per kilowatt hour; and

(2) for all other facilities, 1.5 cents per kilowatt hour.

For electricity generated by qualified wind energy conversion
facilities, the incentive payment under this section is limited
to no more than deleted text begin 100 deleted text end new text begin 200 new text end megawatts of nameplate capacity.

(b) For wind energy conversion systems installed and
contracted for after January 1, 2002, the total size of a wind
energy conversion system under this section must be determined
according to this paragraph. Unless the systems are
interconnected with different distribution systems, the
nameplate capacity of one wind energy conversion system must be
combined with the nameplate capacity of any other wind energy
conversion system that is:

(1) located within five miles of the wind energy conversion
system;

(2) constructed within the same calendar year as the wind
energy conversion system; and

(3) under common ownership.

In the case of a dispute, the commissioner of commerce shall
determine the total size of the system, and shall draw all
reasonable inferences in favor of combining the systems.

(c) In making a determination under paragraph (b), the
commissioner of commerce may determine that two wind energy
conversion systems are under common ownership when the
underlying ownership structure contains similar persons or
entities, even if the ownership shares differ between the two
systems. Wind energy conversion systems are not under common
ownership solely because the same person or entity provided
equity financing for the systems.

Sec. 53.

Minnesota Statutes 2004, section 216C.41,
subdivision 5a, is amended to read:

Subd. 5a.

Renewable development account.

The Department
of Commerce shall authorize payment of the renewable energy
production incentive to wind energy conversion systems for deleted text begin 100
deleted text end new text begin 200 new text end megawatts of nameplate capacity deleted text begin in addition to the capacity
authorized under subdivision 5 deleted text end and to on-farm biogas recovery
facilities. Payment of the incentive shall be made from the
renewable energy development account as provided under section
116C.779, subdivision 2.

Sec. 54.

Minnesota Statutes 2004, section 237.11, is
amended to read:

237.11 INSPECTING RECORDS AND PROPERTY; REPORTS REQUIRED.

Every telephone company subject to the provisions of this
chapter, wherever organized, shall keep an office in this state,
and make such reports to the department as it shall from time to
time require. All books, records, and files, whether they
relate to competitive or noncompetitive services, and all of its
property shall be at all times subject to inspection by the
commission and the department. It shall close its accounts and
take therefrom a balance sheet on December 31 of each year, and
on or before May 1 following, such balance sheet, together with
such other information as the department shall require, verified
by an officer of the telephone company, shall be filed with the
commission and the department new text begin , except that a local exchange
carrier or a competitive local exchange carrier, as defined in
Minnesota Rules, chapter 7811, is only required to file an
annual report that includes the company's name, contact person,
annual revenue, and status of its 911 update plan new text end .

In the event that any telephone company shall fail to file
its annual report, as provided by this section, the department
is authorized to make such an examination of the books, records,
and vouchers of the company as is necessary to procure the
necessary data for the annual report and cause the same to be
prepared. The expense of procuring this data and preparing this
report shall be paid by the telephone company failing to report,
and the amount paid shall be credited by the commissioner of
finance to funds appropriated for the expense of the department.

The department is authorized to force collection of such
sum by an action at law in the name of the department.

Sec. 55.

Minnesota Statutes 2004, section 237.295,
subdivision 1, is amended to read:

Subdivision 1.

deleted text begin payment for investigation deleted text end new text begin filing fee for
new authority new text end .

deleted text begin (a) Whenever the department or commission, in a
proceeding upon its own motion, on complaint, or upon an
application to it, considers it necessary, in order to carry out
the duties imposed on it, to investigate the books, accounts,
practices, and activities of any company, parties to the
proceeding shall pay the expenses reasonably attributable to the
proceeding. The department and commission shall ascertain the
expenses, and the department shall render a bill for those
expenses to the parties, at the conclusion of the proceeding.
The department is authorized to submit billings to parties at
intervals selected by the department during the course of a
proceeding.
deleted text end

deleted text begin (b) The allocation of costs may be adjusted for cause by
the commission during the course of the proceeding, or upon the
closing of the docket and issuance of an order. In addition to
the rights granted in subdivision 3, parties to a proceeding may
object to the allocation at any time during the proceeding.
Withdrawal by a party to a proceeding does not absolve the party
from paying allocated costs as determined by the commission.
The commission may decide that a party should not pay any
allocated costs of the proceeding.
deleted text end

deleted text begin (c) The bill constitutes notice of the assessment and a
demand for payment. The amount of the bills assessed by the
department under this subdivision must be paid by the parties
into the state treasury within 30 days from the date of
assessment. The total amount, in a calendar year, for which a
telephone company may become liable, by reason of costs incurred
by the department and commission within that calendar year, may
not exceed two-fifths of one percent of the gross jurisdictional
operating revenue of the telephone company in the last preceding
calendar year. Direct charges may be assessed without regard to
this limitation until the gross jurisdictional operating revenue
of the telephone company for the preceding calendar year has
been reported for the first time. Where, under this
subdivision, costs are incurred within a calendar year that are
in excess of two-fifths of one percent of the gross
jurisdictional operating revenues, the excess costs are not
chargeable as part of the remainder under subdivision 2.
deleted text end

deleted text begin (d) Except as otherwise provided in paragraph (e), for
purposes of assessing the cost of a proceeding to a party,
"party" means any entity or group subject to the laws and rules
of this state, however organized, whether public or private,
whether domestic or foreign, whether for profit or nonprofit,
and whether natural, corporate, or political, such as a business
or commercial enterprise organized as any type or combination of
corporation, limited liability company, partnership, limited
liability partnership, proprietorship, association, cooperative,
joint venture, carrier, or utility, and any successor or
assignee of any of them; a social or charitable organization;
and any type or combination of political subdivision, which
includes the executive, judicial, or legislative branch of the
state, a local government unit, an agency of the state or a
local government unit, or a combination of any of them.
deleted text end

deleted text begin (e) For assessment and billing purposes, "party" does not
include the Department of Commerce or the Residential Utilities
Division of the Office of Attorney General; any entity or group
instituted primarily for the purpose of mutual help and not
conducted for profit; intervenors awarded compensation under
section 237.075, subdivision 10; or any individual or group or
counsel for the individual or group representing the interests
of end users or classes of end users of services provided by
telephone companies or telecommunications carriers, as
determined by the commission deleted text end new text begin An application for a new authority
must be accompanied by a payment not to exceed $2,000 as
determined by the Public Utilities Commission. This fee will be
reviewed annually and adjusted accordingly new text end .

Sec. 56.

Minnesota Statutes 2004, section 237.295,
subdivision 2, is amended to read:

Subd. 2.

Assessment of costs.

The department and
commission shall quarterly, at least 30 days before the start of
each quarter, estimate the total of their expenditures in the
performance of their duties relating to telephone companies,
other than amounts chargeable to telephone companies under
subdivision 1, 5, or 6. The remainder must be assessed by the
department to the telephone companies operating in this state in
proportion to their respective gross jurisdictional operating
revenues during the last calendar year. The assessment must be
paid into the state treasury within 30 days after the bill has
been mailed to the telephone companies. The bill constitutes
notice of the assessment and demand of payment. The total
amount that may be assessed to the telephone companies under
this subdivision may not exceed deleted text begin one-eighth deleted text end new text begin three-eighths new text end of one
percent of the total gross jurisdictional operating revenues
during the calendar year. The assessment for the third quarter
of each fiscal year must be adjusted to compensate for the
amount by which actual expenditures by the commission and
department for the preceding fiscal year were more or less than
the estimated expenditures previously assessed. A telephone
company with gross jurisdictional operating revenues of less
than $5,000 is exempt from assessments under this subdivision.

Sec. 57.

new text begin [237.491] COMBINED PER NUMBER FEE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this
subdivision apply to this section.
new text end

new text begin (b) "911 emergency and public safety communications program"
means the program governed by chapter 403.
new text end

new text begin (c) "Minnesota telephone number" means a ten-digit
telephone number being used to connect to the public switched
telephone network and starting with area code 218, 320, 507,
612, 651, 763, or 952, or any subsequent area code assigned to
this state.
new text end

new text begin (d) "Service provider" means a provider doing business in
this state who provides real time, two-way voice service with a
Minnesota telephone number.
new text end

new text begin (e) "Telecommunications access Minnesota program" means the
program governed by sections 237.50 to 237.55.
new text end

new text begin (f) "Telephone assistance program" means the program
governed by sections 237.69 to 237.711.
new text end

new text begin Subd. 2. new text end

new text begin Per number fee. new text end

new text begin (a) By January 15, 2006, the
commissioner of commerce shall report to the legislature and to
the senate Committee on Jobs, Energy, and Community Development
and the house Committee on Regulated Industries, recommendations
for the amount of and method for assessing a fee that would
apply to each service provider based upon the number of
Minnesota telephone numbers in use by current customers of the
service provider. The fee would be set at a level calculated to
generate only the amount of revenue necessary to fund:
new text end

new text begin (1) the telephone assistance program and the
telecommunications access Minnesota program at the levels
established by the commission under sections 237.52, subdivision
2, and 237.70; and
new text end

new text begin (2) the 911 emergency and public safety communications
program at the levels appropriated by law to the commissioner of
public safety and the commissioner of finance for purposes of
sections 403.11, 403.113, 403.27, 403.30, and 403.31 for each
fiscal year.
new text end

new text begin (b) The recommendations must include any changes to
Minnesota Statutes necessary to establish the procedures whereby
each service provider, to the extent allowed under federal law,
would collect and remit the fee proceeds to the commissioner of
revenue. The commissioner of revenue would allocate the fee
proceeds to the three funding areas in paragraph (a) and credit
the allocations to the appropriate accounts.
new text end

new text begin (c) The recommendations must be designed to allow the
combined per telephone number fee to be collected beginning July
1, 2006. The per access line fee used to collect revenues to
support the TAP, TAM, and 911 programs remains in effect until
the statutory changes necessary to implement the per telephone
number fee have been enacted into law.
new text end

new text begin (d) As part of the process of developing the
recommendations and preparing the report to the legislature
required under paragraph (a), the commissioner of commerce must,
at a minimum, consult regularly with the Departments of Public
Safety, Finance, and Administration, the Public Utilities
Commission, service providers, the chairs and ranking minority
members of the senate and house committees, subcommittees, and
divisions having jurisdiction over telecommunications and public
safety, and other affected parties.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 58.

Minnesota Statutes 2004, section 237.701,
subdivision 1, is amended to read:

Subdivision 1.

Fund created; authorized expenditures.

The telephone assistance fund is created as a separate account
in the state treasury to consist of amounts received by the
commissioner of public safety representing the surcharge
authorized by section 237.70, subdivision 6, and amounts earned
on the fund assets. Money in the fund may be used only for:

(1) reimbursement to local service providers for expenses
and credits allowed in section 237.70, subdivision 7, paragraph
(d), clause (5);

(2) reimbursement of the new text begin reasonable new text end administrative expenses
of the commission deleted text begin not to exceed $25,000 annually deleted text end new text begin , a portion of
which may be used for periodic promotional activities,
including, but not limited to, radio or newspaper
advertisements, to inform eligible households of the
availability of the telephone assistance program new text end ; and

(3) reimbursement of the statewide indirect cost of the
commission.

Sec. 59.

Minnesota Statutes 2004, section 239.011,
subdivision 2, is amended to read:

Subd. 2.

Duties and powers.

To carry out the
responsibilities in section 239.01 and subdivision 1, the
director:

(1) shall take charge of, keep, and maintain in good order
the standard of weights and measures of the state and keep a
seal so formed as to impress, when appropriate, the letters
"MINN" and the date of sealing upon the weights and measures
that are sealed;

(2) has general supervision of the weights, measures, and
weighing and measuring devices offered for sale, sold, or in use
in the state;

(3) shall maintain traceability of the state standards to
the national standards of the National Institute of Standards
and Technology;

(4) shall enforce this chapter;

(5) shall grant variances from department rules, within the
limits set by rule, when appropriate to maintain good commercial
practices or when enforcement of the rules would cause undue
hardship;

(6) shall conduct investigations to ensure compliance with
this chapter;

(7) may delegate to division personnel the
responsibilities, duties, and powers contained in this section;

(8) shall test annually, and approve when found to be
correct, the standards of weights and measures used by the
division, by a town, statutory or home rule charter city, or
county within the state, or by a person using standards to
repair, adjust, or calibrate commercial weights and measures;

(9) shall inspect and test weights and measures kept,
offered, or exposed for sale;

(10) shall inspect and test, to ascertain if they are
correct, weights and measures commercially used to:

(i) determine the weight, measure, or count of commodities
or things sold, offered, or exposed for sale, on the basis of
weight, measure, or count; and

(ii) compute the basic charge or payment for services
rendered on the basis of weight, measure, or count;

(11) shall approve for use and mark weights and measures
that are found to be correct;

(12) shall reject, and mark as rejected, weights and
measures that are found to be incorrect and may seize them if
those weights and measures:

(i) are not corrected within the time specified by the
director;

(ii) are used or disposed of in a manner not specifically
authorized by the director; or

(iii) are found to be both incorrect and not capable of
being made correct, in which case the director shall condemn
those weights and measures;

(13) shall weigh, measure, or inspect packaged commodities
kept, offered, or exposed for sale, sold, or in the process of
delivery, to determine whether they contain the amount
represented and whether they are kept, offered, or exposed for
sale in accordance with this chapter and department rules. In
carrying out this section, the director must employ recognized
sampling procedures, such as those contained in National
Institute of Standards and Technology Handbook 133, "Checking
the Net Contents of Packaged Goods";

(14) shall prescribe the appropriate term or unit of weight
or measure to be used for a specific commodity when an existing
term or declaration of quantity does not facilitate value
comparisons by consumers, or creates an opportunity for consumer
confusion;

(15) shall allow reasonable variations from the stated
quantity of contents, including variations caused by loss or
gain of moisture during the course of good distribution practice
or by unavoidable deviations in good manufacturing practice,
only after the commodity has entered commerce within the state;

(16) shall inspect and test petroleum products in
accordance with this chapter and chapter 296A;

(17) shall distribute and post notices for used motor oil
and used motor oil filters and lead acid battery recycling in
accordance with sections 239.54, 325E.11, and 325E.115;

(18) shall collect inspection fees in accordance with
sections 239.10 and 239.101; and

(19) shall provide metrological services and support to
businesses and individuals in the United States who wish to
market products and services in the member nations of the
European Economic Community, and other nations outside of the
United States by:

(i) meeting, to the extent practicable, the measurement
quality assurance standards described in the International
Standards Organization ISO deleted text begin 9000, Guide 25 deleted text end new text begin 17025 new text end ;

(ii) maintaining, to the extent practicable, certification
of the metrology laboratory by deleted text begin a governing body appointed by the
European Economic Community deleted text end new text begin an internationally accepted
accrediting body such as the National Voluntary Laboratory
Accreditation Program (NVLAP) new text end ; and

(iii) providing calibration and consultation services to
metrology laboratories in government and private industry in the
United States.

Sec. 60.

Minnesota Statutes 2004, section 239.05, is
amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Automotive fuel. new text end

new text begin For the purpose of enforcing
the gasoline octane requirements in section 239.792, "automotive
fuel" has the meaning given it in Code of Federal Regulations,
title 16, section 306.0.
new text end

Sec. 61.

Minnesota Statutes 2004, section 239.05,
subdivision 10b, is amended to read:

Subd. 10b.

deleted text begin oxygenate deleted text end new text begin ethanol new text end blender.

" deleted text begin Oxygenate deleted text end new text begin Ethanol
new text end blender" means a person who deleted text begin has registered with the division to
blend and distribute, transport, sell, or offer deleted text end new text begin blends and
distributes, transports, sells, or offers new text end to sell gasoline
containing deleted text begin a minimum of 2.0 percent, and an average of 2.7 deleted text end new text begin ten
new text end percent deleted text begin oxygen deleted text end new text begin ethanol new text end by deleted text begin weight deleted text end new text begin volume new text end .

Sec. 62.

Minnesota Statutes 2004, section 239.09, is
amended to read:

239.09 SPECIAL POLICE POWERS.

When necessary to enforce this chapter or rules adopted
under the authority granted by section 239.06, the director is:

(1) authorized and empowered to arrest, without formal
warrant, any violator of sections 325E.11 and 325E.115 or of the
statute in relation to weights and measures;

(2) empowered to seize for use as evidence and without
formal warrant, any false weight, measure, weighing or measuring
device, package, or commodity found to be used, retained, or
offered or exposed for sale or sold in violation of law;

(3) during normal business hours, authorized to enter
commercial premises;

(4) if the premises are not open to the public, authorized
to enter commercial premises only after presenting credentials
and obtaining consent or after obtaining a search warrant;

(5) empowered to issue stop-use, hold, and removal orders
with respect to weights and measures commercially used, and
packaged commodities or bulk commodities kept, offered, or
exposed for sale, that do not comply with the weights and
measures laws; deleted text begin and
deleted text end

(6) empowered, upon reasonable suspicion of a violation of
the weights and measures laws, to stop a commercial vehicle and,
after presentation of credentials, inspect the contents of the
vehicle, require that the person in charge of the vehicle
produce documents concerning the contents, and require the
person to proceed with the vehicle to some specified place for
inspection new text begin ; and
new text end

new text begin (7) empowered, after written warning, to issue citations of
not less than $100 and not more than $500 to a person who
violates any provision of this chapter, any provision of the
rules adopted under the authority contained in this chapter, or
any provision of statutes enforced by the Division of Weights
and Measures new text end .

Sec. 63.

Minnesota Statutes 2004, section 239.101,
subdivision 3, is amended to read:

Subd. 3.

Petroleum inspection fee.

(a) An inspection fee
is imposed (1) on petroleum products when received by the first
licensed distributor, and (2) on petroleum products received and
held for sale or use by any person when the petroleum products
have not previously been received by a licensed distributor.
The petroleum inspection fee is $1 for every 1,000 gallons
received. The commissioner of revenue shall collect the fee.
The revenue from new text begin 81 cents of new text end the fee deleted text begin must first be applied to
cover the amounts appropriated. Fifteen cents of the inspection
fee must be deposited in an account in the special revenue fund
and deleted text end is appropriated to the commissioner of commerce for the cost
of deleted text begin petroleum product quality inspection expenses and for the
inspection and testing of petroleum product-measuring
equipment deleted text end new text begin operations of the Division of Weights and Measures,
petroleum supply monitoring, and the oil burner retrofit
program new text end . The remainder of the fee must be deposited in the
general fund.

(b) The commissioner of revenue shall credit a person for
inspection fees previously paid in error or for any material
exported or sold for export from the state upon filing of a
report as prescribed by the commissioner of revenue.

(c) The commissioner of revenue may collect the inspection
fee along with any taxes due under chapter 296A.

Sec. 64.

Minnesota Statutes 2004, section 239.75,
subdivision 1, is amended to read:

Subdivision 1.

Inspection to be made.

The director shall:

(1) take samples, free of charge, of petroleum products
wherever processed, blended, held, stored, imported,
transferred, offered for sale or use, or sold in Minnesota,
limiting each sample to deleted text begin :
deleted text end

deleted text begin (i) two-tenths of one deleted text end new text begin one-half new text end gallon deleted text begin , except when an
octane test is planned; or
deleted text end

deleted text begin (ii) seven-tenths of one gallon for an octane test deleted text end ;

(2) inspect and test petroleum product samples according to
the methods of ASTM or other valid test methods adopted by rule,
to determine whether the products comply with the specifications
in section 239.761;

(3) inspect petroleum product storage tanks to ensure that
the products are free from water and impurities;

(4) inspect and test samples submitted to the department by
a licensed distributor, making the test results available to the
distributor;

(5) inspect the labeling, price posting, and price
advertising of petroleum product dispensers and advertising
signs at businesses or locations where petroleum products are
sold, offered for sale or use, or dispensed into motor vehicles;

(6) maintain records of all inspections and tests according
to the records retention policies of the Department of
Administration;

(7) delegate to division personnel, at the director's
discretion, any or all of the responsibilities, duties, and
powers in sections 239.75 to 239.80;

(8) publish deleted text begin octane deleted text end test data and information to assist
persons who new text begin use, new text end produce deleted text begin and deleted text end new text begin , distribute, or new text end sell deleted text begin gasoline and
gasoline-oxygenate blends deleted text end new text begin petroleum-based heating and engine
fuels new text end ;

(9) deleted text begin register gasoline-oxygenate blenders according to the
requirements of the EPA;
deleted text end

deleted text begin (10) deleted text end audit the records of any person responsible for the
product to determine compliance with sections 239.75 to 239.792;

deleted text begin (11) deleted text end new text begin (10) new text end after consulting with the commissioner deleted text begin of the
Pollution Control Agency deleted text end , grant a temporary exemption from the
deleted text begin oxygenated gasoline deleted text end new text begin gasoline-ethanol blending new text end requirements in
section 239.791 if the supply of deleted text begin oxygenate deleted text end new text begin ethanol new text end is
insufficient to produce deleted text begin gasoline-oxygenate deleted text end new text begin gasoline-ethanol
new text end blends deleted text begin during an EPA-designated carbon monoxide control period deleted text end ;
and

deleted text begin (12) deleted text end new text begin (11) new text end adopt, as an enforcement policy for the division,
reasonable margins of uncertainty for the tests used to
determine compliance with the specifications in section 239.761,
the oxygen percentages in section 239.791, and the octane
requirements in section 239.792 and apply the margins of
uncertainty to only tests performed by the division, not by
adding the margins to uncertainties in tests performed by any
person responsible for the product.

Sec. 65.

Minnesota Statutes 2004, section 239.75,
subdivision 5, is amended to read:

Subd. 5.

Product quality, responsibility.

After a
deleted text begin gasoline product deleted text end new text begin petroleum-based engine fuel new text end is purchased,
transferred, or otherwise removed from a refinery or terminal,
the person responsible for the product shall:

(1) keep the product free from contamination with water and
impurities;

(2) not blend the product with dissimilar petroleum
products, for example, gasoline must not be blended with diesel
fuel;

(3) not blend the product with any contaminant, dye,
chemical, or additive, except:

(i) agriculturally derived, denatured ethanol that complies
with the specifications in this chapter;

(ii) an antiknock additive, or an additive designed to
replace tetra-ethyl lead, that is registered by the EPA; deleted text begin or
deleted text end

(iii) a dye to distinguish heating fuel from low sulfur
diesel fuel; new text begin or
new text end

new text begin (iv) biodiesel fuel that complies with the specifications
in this chapter; new text end and

(4) maintain a record of the name or chemical composition
of the additive, with the product shipping manifest or bill of
lading for one year after the date of the manifest or bill.

Sec. 66.

Minnesota Statutes 2004, section 239.761, is
amended to read:

239.761 PETROLEUM PRODUCT SPECIFICATIONS.

Subdivision 1.

Applicability.

A person responsible for
the product must meet the specifications in this section. The
specifications apply to petroleum products processed, held,
stored, imported, transferred, distributed, offered for
distribution, offered for sale or use, or sold in Minnesota.

Subd. 2.

Coordination with departments of revenue and
agriculture.

The petroleum product specifications in this
section are intended to match the definitions and specifications
in sections 41A.09 and 296A.01. Petroleum products named in
this section are defined in section 296A.01.

Subd. 3.

Gasoline.

(a) Gasoline that is not blended with
ethanol must not be contaminated with water or other impurities
and must comply with ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end .
Gasoline that is not blended with ethanol must also comply with
the volatility requirements in Code of Federal Regulations,
title 40, part 80.

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

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

(2) shall not blend the gasoline with any oxygenate other
than denatured, agriculturally derived ethanol;

(3) shall not blend the gasoline with other petroleum
products that are not gasoline or denatured, agriculturally
derived ethanol;

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

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

Subd. 4.

Gasoline blended with ethanol.

(a) Gasoline may
be blended with up to ten percent, by volume, agriculturally
derived, denatured ethanol that complies with the requirements
of subdivision 5.

(b) A gasoline-ethanol blend must:

(1) comply with the volatility requirements in Code of
Federal Regulations, title 40, part 80;

(2) comply with ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end , or
the gasoline base stock from which a gasoline-ethanol blend was
produced must comply with ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end ;
and

(3) not be blended with casinghead gasoline, absorption
gasoline, condensation gasoline, drip gasoline, or natural
gasoline after the gasoline-ethanol blend has been sold,
transferred, or otherwise removed from a refinery or terminal.

Subd. 5.

Denatured ethanol.

Denatured ethanol that is to
be blended with gasoline must be agriculturally derived and must
comply with ASTM specification deleted text begin D4806-01 deleted text end new text begin D4806-04a new text end . This
includes the requirement that ethanol may be denatured only as
specified in Code of Federal Regulations, title 27, parts 20 and
21.

Subd. 6.

Gasoline blended with nonethanol oxygenate.

(a)
A person responsible for the product shall comply with the
following requirements:

(1) after July 1, 2000, gasoline containing in excess of
one-third of one percent, in total, of nonethanol oxygenates
listed in paragraph (b) must not be sold or offered for sale at
any time in this state; and

(2) after July 1, 2005, gasoline containing any of the
nonethanol oxygenates listed in paragraph (b) must not be sold
or offered for sale in this state.

(b) The oxygenates prohibited under paragraph (a) are:

(1) methyl tertiary butyl ether, as defined in section
296A.01, subdivision 34;

(2) ethyl tertiary butyl ether, as defined in section
296A.01, subdivision 18; or

(3) tertiary amyl methyl ether.

(c) Gasoline that is blended with a nonethanol oxygenate
must comply with ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end .
Nonethanol oxygenates must not be blended into gasoline after
the gasoline has been sold, transferred, or otherwise removed
from a refinery or terminal.

Subd. 7.

Heating fuel oil.

Heating fuel oil must comply
with ASTM specification deleted text begin D396-01 deleted text end new text begin D396-02a new text end .

Subd. 8.

Diesel fuel oil.

Diesel fuel oil must comply
with ASTM specification deleted text begin D975-01a deleted text end new text begin D975-04b, except that diesel
fuel oil is not required to meet the diesel lubricity standard
until the date that the biodiesel fuel requirement in section
239.77, subdivision 2, becomes effective or December 31, 2005,
whichever comes first new text end .

Subd. 9.

Kerosene.

Kerosene must comply with ASTM
specification deleted text begin D3699-01 deleted text end new text begin D3699-03 new text end .

Subd. 10.

Aviation gasoline.

Aviation gasoline must
comply with ASTM specification deleted text begin D910-00 deleted text end new text begin D910-04 new text end .

Subd. 11.

Aviation turbine fuel, jet fuel.

Aviation
turbine fuel and jet fuel must comply with ASTM specification
deleted text begin D1655-01 deleted text end new text begin D1655-04 new text end .

Subd. 12.

Gas turbine fuel oil.

Fuel oil for use in
nonaviation gas turbine engines must comply with ASTM
specification deleted text begin D2880-00 deleted text end new text begin D2880-03 new text end .

Subd. 13.

E85.

A blend of ethanol and gasoline,
containing at least 60 percent ethanol and not more than 85
percent ethanol, produced for use as a motor fuel in alternative
fuel vehicles as defined in section 296A.01, subdivision 5, must
comply with ASTM specification D5798-99 new text begin (2004) new text end .

Subd. 14.

M85.

A blend of methanol and gasoline,
containing at least 85 percent methanol, produced for use as a
motor fuel in alternative fuel vehicles as defined in section
296A.01, subdivision 5, must comply with ASTM specification
D5797-96.

Sec. 67.

Minnesota Statutes 2004, section 239.77, is
amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Disclosure. new text end

new text begin A refinery or terminal shall
provide, at the time diesel fuel is sold or transferred from the
refinery or terminal, a bill of lading or shipping manifest to
the person who receives the fuel. For biodiesel-blended
products, the bill of lading or shipping manifest must disclose
biodiesel content, stating volume percentage, gallons of
biodiesel per gallons of petroleum diesel base-stock, or an ASTM
"Bxx" designation where "xx" denotes the volume percent
biodiesel included in the blended product. This subdivision
does not apply to sales or transfers of biodiesel blend stock
between refineries, between terminals, or between a refinery and
a terminal.
new text end

Sec. 68.

Minnesota Statutes 2004, section 239.79,
subdivision 4, is amended to read:

Subd. 4.

Sale of certain petroleum products on gross
volume basis.

A person responsible for the products listed in
this subdivision shall transfer, ship, distribute, offer for
distribution, sell, or offer to sell the products by volume.
Volumetric measurement of the product must not be temperature
compensated, or adjusted by any other factor. This subdivision
applies to gasoline, number one and number two diesel fuel oils,
number one and number two heating fuel oils, kerosene, denatured
ethanol deleted text begin that is to be blended into gasoline, and an oxygenate
that is to be blended into gasoline deleted text end new text begin , and biodiesel new text end . This
subdivision does not apply to the measurement of petroleum
products transferred, sold, or traded between refineries,
between refineries and terminals, or between terminals.

Sec. 69.

Minnesota Statutes 2004, section 239.791,
subdivision 1, is amended to read:

Subdivision 1.

Minimum ethanol content required.

(a)
Except as provided in subdivisions 10 to 14, a person
responsible for the product shall ensure that all gasoline sold
or offered for sale in Minnesota must contain at least 10.0
percent denatured ethanol by volume.

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

Sec. 70.

Minnesota Statutes 2004, section 239.791,
subdivision 7, is amended to read:

Subd. 7.

deleted text begin oxygenate deleted text end new text begin ethanol new text end records; state audit.

The
director shall audit the records of registered deleted text begin oxygenate deleted text end new text begin ethanol
new text end blenders to ensure that each blender has met all requirements in
this chapter. Specific information or data relating to sales
figures or to processes or methods of production unique to the
blender or that would tend to adversely affect the competitive
position of the blender must be only for the confidential use of
the director, unless otherwise specifically authorized by the
registered blender.

Sec. 71.

Minnesota Statutes 2004, section 239.791,
subdivision 8, is amended to read:

Subd. 8.

Disclosure.

A refinery or terminal, shall
provide, at the time gasoline is sold or transferred from the
refinery or terminal, a bill of lading or shipping manifest to
the person who receives the gasoline. For oxygenated gasoline,
the bill of lading or shipping manifest must include the
identity and the volume percentage or gallons of oxygenate
included in the gasoline, and it must state: "This fuel
contains an oxygenate. Do not blend this fuel with ethanol or
with any other oxygenate." deleted text begin For nonoxygenated gasoline sold or
transferred before October 1, 1997, the bill or manifest must
state: "This fuel must not be sold at retail in a carbon
monoxide control area." deleted text end For nonoxygenated gasoline sold or
transferred after September 30, 1997, the bill or manifest must
state: "This fuel is not oxygenated. It must not be sold at
retail in Minnesota." This subdivision does not apply to sales
or transfers of gasoline between refineries, between terminals,
or between a refinery and a terminal.

Sec. 72.

Minnesota Statutes 2004, section 239.791,
subdivision 15, is amended to read:

Subd. 15.

Exemption for certain blend pumps.

new text begin (a) new text end A
person responsible for the product, who offers for sale, sells,
or dispenses nonoxygenated premium gasoline under one or more of
the exemptions in subdivisions 10 to 14, may sell, offer for
sale, or dispense oxygenated gasoline that contains less than
the minimum amount of ethanol required under subdivision 1 if
all of the following conditions are met:

(1) the blended gasoline has an octane rating of 88 or
greater;

(2) the gasoline is a blend of oxygenated gasoline meeting
the requirements of subdivision 1 with nonoxygenated premium
gasoline;

(3) the blended gasoline contains not more than ten percent
nonoxygenated premium gasoline;

(4) the blending of oxygenated gasoline with nonoxygenated
gasoline occurs within the gasoline dispenser; and

(5) the gasoline station at which the gasoline is sold,
offered for sale, or delivered is equipped to store gasoline in
not more than two storage tanks.

new text begin (b) new text end This subdivision applies only to those persons who meet
the conditions in new text begin paragraph (a), new text end clauses (1) through (5) new text begin , new text end on deleted text begin the
effective date of this act deleted text end new text begin August 1, 2004, new text end and have registered
with the director within three months of deleted text begin the effective deleted text end new text begin that new text end date
deleted text begin of this act deleted text end .

Sec. 73.

Minnesota Statutes 2004, section 239.792, is
amended to read:

239.792 deleted text begin GASOLINE OCTANE deleted text end new text begin AUTOMOTIVE FUEL RATINGS,
CERTIFICATION, AND POSTING new text end .

Subdivision 1.

deleted text begin disclosure deleted text end new text begin duties of refiners, importers,
and producers new text end .

A deleted text begin manufacturer, hauler, blender, agent, jobber,
consignment agent deleted text end new text begin refiner new text end , importer, or deleted text begin distributor who sells,
delivers, or distributes gasoline or gasoline-oxygenate blends,
shall provide, at the time of delivery, a bill of lading or
shipping manifest to the person who receives the gasoline. The
bill or manifest must state the minimum octane of the gasoline
delivered. The stated octane number must be the average of the
"motor method" octane number and the "research method" octane
number as determined by the test methods in ASTM specification
D4814-01, or by a test method adopted by department
rule deleted text end new text begin producer of automotive fuel must comply with the automotive
fuel rating, certification, and record-keeping requirements of
Code of Federal Regulations, title 16, sections 306.5 to 306.7 new text end .

Subd. 2.

deleted text begin dispenser labeling deleted text end new text begin duties of distributors new text end .

deleted text begin A
person responsible for the product shall clearly, conspicuously,
and permanently label each gasoline dispenser that is used to
sell gasoline or gasoline-oxygenate blends at retail or to
dispense gasoline or gasoline-oxygenate blends into the fuel
supply tanks of motor vehicles, with the minimum octane of the
gasoline dispensed. The label must meet the following
requirements:
deleted text end

deleted text begin (a) The octane number displayed on the label must represent
the average of the "motor method" octane number and the
"research method" octane number as determined by the test
methods in ASTM specification D4814-01, or by a test method
adopted by department rule.
deleted text end

deleted text begin (b) The label must be at least 2-1/2 inches high and three
inches wide, with a yellow background, black border, and black
figures and letters.
deleted text end

deleted text begin (c) The number representing the octane of the gasoline must
be at least one inch high.
deleted text end

deleted text begin (d) The label must include the words "minimum octane" and
the term "(R+M)/2" or "(RON+MON)/2." deleted text end new text begin A licensed distributor of
automotive fuel must comply with the certification and
record-keeping provisions of Code of Federal Regulations, title
16, sections 306.8 and 306.9.
new text end

new text begin Subd. 3. new text end

new text begin Duties of retailers. new text end

new text begin A person responsible for
the product who sells or transfers automotive fuel to a consumer
must comply with the automotive fuel rating posting and
record-keeping requirements, and the label specifications of
Code of Federal Regulations, title 16, sections 306.10 to 306.12.
new text end

new text begin Subd. 4. new text end

new text begin Duties of director. new text end

new text begin Upon request, the director
shall provide any person with a copy of Code of Federal
Regulations, title 16, part 306. Upon request, the director
shall provide any distributor, retailer, or organization of
distributors or retailers with the label specifications in Code
of Federal Regulations, title 16, section 306.12.
new text end

Sec. 74.

Minnesota Statutes 2004, section 268.19,
subdivision 1, is amended to read:

Subdivision 1.

Use of data.

(a) Except as otherwise
provided by this section, data gathered from any person pursuant
to the administration of the Minnesota Unemployment Insurance
Law are private data on individuals or nonpublic data not on
individuals as defined in section 13.02, subdivisions 9 and 12,
and may not be disclosed except pursuant to a court order or
section 13.05. A subpoena shall not be considered a court
order. These data may be disseminated to and used by the
following agencies without the consent of the subject of the
data:

(1) state and federal agencies specifically authorized
access to the data by state or federal law;

(2) any agency of any other state or any federal agency
charged with the administration of an unemployment insurance
program;

(3) any agency responsible for the maintenance of a system
of public employment offices for the purpose of assisting
individuals in obtaining employment;

(4) human rights agencies within Minnesota that have
enforcement powers;

(5) the Department of Revenue only to the extent necessary
for its duties under Minnesota laws;

(6) public and private agencies responsible for
administering publicly financed assistance programs for the
purpose of monitoring the eligibility of the program's
recipients;

(7) the Department of Labor and Industry and the Division
of Insurance Fraud Prevention in the Department of Commerce on
an interchangeable basis with the department for uses consistent
with the administration of their duties under Minnesota law;

(8) local and state welfare agencies for monitoring the
eligibility of the data subject for assistance programs, or for
any employment or training program administered by those
agencies, whether alone, in combination with another welfare
agency, or in conjunction with the department or to monitor and
evaluate the statewide Minnesota family investment program by
providing data on recipients and former recipients of food
stamps or food support, cash assistance under chapter 256, 256D,
256J, or 256K, child care assistance under chapter 119B, or
medical programs under chapter 256B, 256D, or 256L;

(9) new text begin local and state welfare agencies for the purpose of
identifying employment, wages, and other information to assist
in the collection of an overpayment debt in an assistance
program;
new text end

new text begin (10) new text end local, state, and federal law enforcement agencies for
the sole purpose of ascertaining the last known address and
employment location of a person who is the subject of a criminal
investigation;

deleted text begin (10) deleted text end new text begin (11) new text end the federal Immigration and Naturalization
Service shall have access to data on specific individuals and
specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency; and

deleted text begin (11) deleted text end new text begin (12) new text end the Department of Health solely for the purposes
of epidemiologic investigations.

(b) Data on individuals and employers that are collected,
maintained, or used by the department in an investigation
pursuant to section 268.182 are confidential as to data on
individuals and protected nonpublic data not on individuals as
defined in section 13.02, subdivisions 3 and 13, and must not be
disclosed except pursuant to statute or court order or to a
party named in a criminal proceeding, administrative or
judicial, for preparation of a defense.

(c) Data gathered by the department pursuant to the
administration of the Minnesota unemployment insurance program
must not be made the subject or the basis for any suit in any
civil proceedings, administrative or judicial, unless the action
is initiated by the department.

Sec. 75.

new text begin [290.0676] EXPLORE MINNESOTA TOURISM TAX
REPORT.
new text end

new text begin Within 30 days of the end of each quarter, the Department
of Revenue shall provide Explore Minnesota Tourism with a
quarterly report of comparisons of quarterly sales taxes
collected under the Standard Industrial Classification System,
or equivalent codes in the North America Industry Classification
System, in the following areas:
new text end

new text begin (1) SIC 70, lodging;
new text end

new text begin (2) SIC 79, amusement and recreation; and
new text end

new text begin (3) SIC 58, eating and drinking.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable
years beginning after December 31, 2004.
new text end

Sec. 76.

Minnesota Statutes 2004, section 296A.01,
subdivision 2, is amended to read:

Subd. 2.

Agricultural alcohol gasoline.

"Agricultural
alcohol gasoline" means a gasoline-ethanol blend of up to ten
percent agriculturally derived fermentation ethanol derived from
agricultural products, such as potatoes, cereal, grains, cheese
whey, sugar beets, forest products, or other renewable
resources, that:

(1) meets the specifications in ASTM specification deleted text begin D4806-01
deleted text end new text begin D4806-04a new text end ; and

(2) is denatured as specified in Code of Federal
Regulations, title 27, parts 20 and 21.

Sec. 77.

Minnesota Statutes 2004, section 296A.01,
subdivision 7, is amended to read:

Subd. 7.

Aviation gasoline.

"Aviation gasoline" means
any gasoline that is capable of use for the purpose of producing
or generating power for propelling internal combustion engine
aircraft, that meets the specifications in ASTM
specification deleted text begin D910-00 deleted text end new text begin D910-04 new text end , and that either:

(1) is invoiced and billed by a producer, manufacturer,
refiner, or blender to a distributor or dealer, by a distributor
to a dealer or consumer, or by a dealer to consumer, as
"aviation gasoline"; or

(2) whether or not invoiced and billed as provided in
clause (1), is received, sold, stored, or withdrawn from storage
by any person, to be used for the purpose of producing or
generating power for propelling internal combustion engine
aircraft.

Sec. 78.

Minnesota Statutes 2004, section 296A.01,
subdivision 8, is amended to read:

Subd. 8.

Aviation turbine fuel and jet fuel.

"Aviation
turbine fuel" and "jet fuel" mean blends of hydrocarbons derived
from crude petroleum, natural gasoline, and synthetic
hydrocarbons, intended for use in aviation turbine engines, and
that meet the specifications in ASTM specification
deleted text begin D1655-01 deleted text end new text begin D1655.04 new text end .

Sec. 79.

Minnesota Statutes 2004, section 296A.01,
subdivision 14, is amended to read:

Subd. 14.

Diesel fuel oil.

"Diesel fuel oil" means a
petroleum distillate or blend of petroleum distillate and
residual fuels, intended for use as a motor fuel in internal
combustion diesel engines, that meets the specifications in ASTM
specification deleted text begin D975-01A deleted text end new text begin D975-04b, except that diesel fuel oil is
not required to meet the diesel lubricity standard until the
date that the biodiesel fuel requirement in section 239.77,
subdivision 2, becomes effective or December 31, 2005, whichever
comes first new text end . Diesel fuel includes number 1 and number 2 fuel
oils. K-1 kerosene is not diesel fuel unless it is blended with
diesel fuel for use in motor vehicles.

Sec. 80.

Minnesota Statutes 2004, section 296A.01,
subdivision 19, is amended to read:

Subd. 19.

E85.

"E85" means a petroleum product that is a
blend of agriculturally derived denatured ethanol and gasoline
or natural gasoline that typically contains 85 percent ethanol
by volume, but at a minimum must contain 60 percent ethanol by
volume. For the purposes of this chapter, the energy content of
E85 will be considered to be 82,000 BTUs per gallon. E85
produced for use as a motor fuel in alternative fuel vehicles as
defined in subdivision 5 must comply with ASTM specification
D5798-99 new text begin (2004) new text end .

Sec. 81.

Minnesota Statutes 2004, section 296A.01,
subdivision 20, is amended to read:

Subd. 20.

Ethanol, denatured.

"Ethanol, denatured" means
ethanol that is to be blended with gasoline, has been
agriculturally derived, and complies with ASTM specification
deleted text begin D4806-01 deleted text end new text begin D4806-04a new text end . This includes the requirement that ethanol
may be denatured only as specified in Code of Federal
Regulations, title 27, parts 20 and 21.

Sec. 82.

Minnesota Statutes 2004, section 296A.01,
subdivision 22, is amended to read:

Subd. 22.

Gas turbine fuel oil.

"Gas turbine fuel oil"
means fuel that contains mixtures of hydrocarbon oils free of
inorganic acid and excessive amounts of solid or fibrous foreign
matter, intended for use in nonaviation gas turbine engines, and
that meets the specifications in ASTM specification
deleted text begin D2880-00 deleted text end new text begin D2880-03 new text end .

Sec. 83.

Minnesota Statutes 2004, section 296A.01,
subdivision 23, is amended to read:

Subd. 23.

Gasoline.

(a) "Gasoline" means:

(1) all products commonly or commercially known or sold as
gasoline regardless of their classification or uses, except
casinghead gasoline, absorption gasoline, condensation gasoline,
drip gasoline, or natural gasoline that under the requirements
of section 239.761, subdivision 3, must not be blended with
gasoline that has been sold, transferred, or otherwise removed
from a refinery or terminal; and

(2) any liquid prepared, advertised, offered for sale or
sold for use as, or commonly and commercially used as, a fuel in
spark-ignition, internal combustion engines, and that when
tested by the Weights and Measures Division meets the
specifications in ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end .

(b) Gasoline that is not blended with ethanol must not be
contaminated with water or other impurities and must comply with
both ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end and the volatility
requirements in Code of Federal Regulations, title 40, part 80.

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

(1) may blend the gasoline with agriculturally derived
ethanol, as provided in subdivision 24;

(2) must not blend the gasoline with any oxygenate other
than denatured, agriculturally derived ethanol;

(3) must not blend the gasoline with other petroleum
products that are not gasoline or denatured, agriculturally
derived ethanol;

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

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

Sec. 84.

Minnesota Statutes 2004, section 296A.01,
subdivision 24, is amended to read:

Subd. 24.

Gasoline blended with nonethanol oxygenate.

"Gasoline blended with nonethanol oxygenate" means gasoline
blended with ETBE, MTBE, or other alcohol or ether, except
denatured ethanol, that is approved as an oxygenate by the EPA,
and that complies with ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end .
Oxygenates, other than denatured ethanol, must not be blended
into gasoline after the gasoline has been sold, transferred, or
otherwise removed from a refinery or terminal.

Sec. 85.

Minnesota Statutes 2004, section 296A.01,
subdivision 25, is amended to read:

Subd. 25.

Gasoline blended with ethanol.

"Gasoline
blended with ethanol" means gasoline blended with up to ten
percent, by volume, agriculturally derived, denatured ethanol.
The blend must comply with the volatility requirements in Code
of Federal Regulations, title 40, part 80. The blend must also
comply with ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end , or the
gasoline base stock from which a gasoline-ethanol blend was
produced must comply with ASTM specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end ;
and the gasoline-ethanol blend must not be blended with
casinghead gasoline, absorption gasoline, condensation gasoline,
drip gasoline, or natural gasoline after the gasoline-ethanol
blend has been sold, transferred, or otherwise removed from a
refinery or terminal. The blend need not comply with ASTM
specification deleted text begin D4814-01 deleted text end new text begin D4814-04a new text end if it is subjected to a
standard distillation test. For a distillation test, a
gasoline-ethanol blend is not required to comply with the
temperature specification at the 50 percent liquid recovery
point, if the gasoline from which the gasoline-ethanol blend was
produced complies with all of the distillation specifications.

Sec. 86.

Minnesota Statutes 2004, section 296A.01,
subdivision 26, is amended to read:

Subd. 26.

Heating fuel oil.

"Heating fuel oil" means a
petroleum distillate, blend of petroleum distillates and
residuals, or petroleum residual heating fuel that meets the
specifications in ASTM specification deleted text begin D396-01 deleted text end new text begin D396-02a new text end .

Sec. 87.

Minnesota Statutes 2004, section 296A.01,
subdivision 28, is amended to read:

Subd. 28.

Kerosene.

"Kerosene" means a refined petroleum
distillate consisting of a homogeneous mixture of hydrocarbons
essentially free of water, inorganic acidic and basic compounds,
and excessive amounts of particulate contaminants and that meets
the specifications in ASTM specification deleted text begin D3699-01 deleted text end new text begin D3699-03 new text end .

Sec. 88.

Minnesota Statutes 2004, section 298.22, is
amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Sale or privatization of functions. new text end

new text begin The
commissioner of Iron Range resources and rehabilitation may not
sell or privatize the Ironworld Discovery Center or Giants Ridge
Golf and Ski Resort without prior approval by a majority vote of
the board.
new text end

Sec. 89.

Minnesota Statutes 2004, section 298.28,
subdivision 9b, is amended to read:

Subd. 9b.

Taconite environmental fund.

Five cents per
ton deleted text begin for distributions in 1999, 2000, 2001, 2002, and 2003 deleted text end must
be paid to the taconite environmental fund for use under section
298.2961 new text begin , subdivision 4 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for
distributions in 2005 and later years.
new text end

Sec. 90.

Minnesota Statutes 2004, section 298.28,
subdivision 10, is amended to read:

Subd. 10.

Increase.

new text begin (a) Except as provided in paragraph
(b), new text end beginning with distributions in 2000, the amount determined
under subdivision 9 shall be increased in the same proportion as
the increase in the implicit price deflator as provided in
section 298.24, subdivision 1. Beginning with distributions in
2003, the amount determined under subdivision 6, paragraph (a),
shall be increased in the same proportion as the increase in the
implicit price deflator as provided in section 298.24,
subdivision 1.

new text begin (b) For distributions in 2005 and subsequent years, an
amount equal to the increased tax proceeds attributable to the
increase in the implicit price deflator as provided in section
298.24, subdivision 1, for taxes paid in 2005, except for the
amount of revenue increases provided in subdivision 4, paragraph
(d), is distributed to the grant and loan fund established in
section 298.2961, subdivision 4.
new text end

Sec. 91.

Minnesota Statutes 2004, section 298.2961, is
amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Grant and loan fund. new text end

new text begin (a) A fund is established
to receive distributions under section 298.28, subdivision 9b,
and to make grants or loans as provided in this subdivision.
Any grant or loan made under this subdivision must be approved
by a majority of the members of the Iron Range Resources and
Rehabilitation Board, established under section 298.22.
new text end

new text begin (b) Distributions received in calendar year 2005 are
allocated to the city of Virginia for improvements and repairs
to the city's steam heating system.
new text end

new text begin (c) Distributions received in calendar year 2006 are
allocated to a project of the public utilities commissions of
the cities of Hibbing and Virginia to convert their electrical
generating plants to the use of biomass products, such as wood.
new text end

new text begin (d) Distributions received in calendar year 2007 must be
paid to the city of Tower to be used for the East Two Rivers
project in or near the city of Tower.
new text end

new text begin (e) For distributions received in 2008 and later, amounts
may be allocated to joint ventures with mining companies for
reclamation of lands containing abandoned or worked out mines to
convert these lands to marketable properties for residential,
recreational, commercial, or other valuable uses.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 92.

Minnesota Statutes 2004, section 325E.311,
subdivision 6, is amended to read:

Subd. 6.

Telephone solicitation.

"Telephone
solicitation" means any voice communication over a telephone
line for the purpose of encouraging the purchase or rental of,
or investment in, property, goods, or services, whether the
communication is made by a live operator, through the use of an
automatic dialing-announcing device as defined in section
325E.26, subdivision 2, or by other means. Telephone
solicitation does not include communications:

(1) to any residential subscriber with that subscriber's
prior express invitation or permission; new text begin or
new text end

(2) by or on behalf of any person or entity with whom a
residential subscriber has a prior or current business or
personal relationship deleted text begin ; deleted text end new text begin .
new text end

new text begin Telephone solicitation also does not include communications if
the caller is identified by a caller identification service and
the call is:
new text end

deleted text begin (3) deleted text end new text begin (i) new text end by or on behalf of an organization that is
identified as a nonprofit organization under state or federal
law; deleted text begin or
deleted text end

deleted text begin (4) deleted text end new text begin (ii) new text end by a person soliciting without the intent to
complete, and who does not in fact complete, the sales
presentation during the call, but who will complete the sales
presentation at a later face-to-face meeting between the
solicitor who makes the call and the prospective purchaser new text begin ; or
new text end

new text begin (iii) by a political party as defined under section 200.02,
subdivision 6 new text end .

Sec. 93.

new text begin [325F.991] 911 EMERGENCY PHONE SERVICE
REPRESENTATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this
section, the terms defined in this subdivision have the meanings
given them.
new text end

new text begin (a) "911 emergency telecommunications system" means a
dedicated emergency telecommunications system required by
section 403.025.
new text end

new text begin (b) "Person" means an individual, corporation, firm, or
other legal entity.
new text end

new text begin (c) "Service provider" means a person doing business in
Minnesota who provides real time, two-way voice service
interconnected with the public switched telephone network using
numbers allocated for Minnesota by the North American Numbering
Plan Administration.
new text end

new text begin Subd. 2. new text end

new text begin Representations of 911 service. new text end

new text begin A person shall
not advertise, market, or otherwise represent that the person
furnishes a service capable of providing access to emergency
services by dialing 911 unless the person provides a service
that routes 911 calls through the 911 emergency
telecommunications system.
new text end

new text begin Subd. 3. new text end

new text begin Disclosure. new text end

new text begin A service provider that does not
provide 911 dialing that routes 911 calls through the 911
emergency telecommunications system must disclose that fact in
all advertisements, marketing materials, and contracts. The
disclosure must be in capital letters, in 12-point font, and on
the front page of the advertisement, marketing materials, and
contracts. The disclosure must state: "THIS SERVICE DOES NOT
ROUTE 911 CALLS THROUGH THE 911 EMERGENCY SYSTEM."
new text end

new text begin Subd. 4. new text end

new text begin Certain calls not 911 calls. new text end

new text begin For purposes of
this section, 911 calls routed to the general access number at a
public safety answering point do not qualify as being routed
through a 911 emergency telecommunications system.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 94.

Minnesota Statutes 2004, section 326.975,
subdivision 1, is amended to read:

Subdivision 1.

Generally.

(a) In addition to any other
fees, each applicant for a license under sections 326.83 to
326.98 shall pay a fee to the contractor's recovery fund. The
contractor's recovery fund is created in the state treasury and
must be administered by the commissioner in the manner and
subject to all the requirements and limitations provided by
section 82.43 with the following exceptions:

(1) each licensee who renews a license shall pay in
addition to the appropriate renewal fee an additional fee which
shall be credited to the contractor's recovery fund. The amount
of the fee shall be based on the licensee's gross annual
receipts for the licensee's most recent fiscal year preceding
the renewal, on the following scale:

Fee Gross Receipts
$100 under $1,000,000
$150 $1,000,000 to $5,000,000
$200 over $5,000,000

Any person who receives a new license shall pay a fee based on
the same scale;

(2) the deleted text begin sole deleted text end purpose of this fund is new text begin :
new text end

new text begin (i) new text end to compensate any aggrieved owner or lessee of
residential property located within this state who obtains a
final judgment in any court of competent jurisdiction against a
licensee licensed under section 326.84, on grounds of
fraudulent, deceptive, or dishonest practices, conversion of
funds, or failure of performance arising directly out of any
transaction when the judgment debtor was licensed and performed
any of the activities enumerated under section 326.83,
subdivision 19, on the owner's residential property or on
residential property rented by the lessee, or on new residential
construction which was never occupied prior to purchase by the
owner, or which was occupied by the licensee for less than one
year prior to purchase by the owner, and which cause of action
arose on or after April 1, 1994; new text begin and
new text end

new text begin (ii) to reimburse the Department of Commerce for all legal
and administrative expenses, including staffing costs, incurred
in administering the fund;
new text end

(3) nothing may obligate the fund for more than $50,000 per
claimant, nor more than $75,000 per licensee; and

(4) nothing may obligate the fund for claims based on a
cause of action that arose before the licensee paid the recovery
fund fee set in clause (1), or as provided in section 326.945,
subdivision 3.

(b) Should the commissioner pay from the contractor's
recovery fund any amount in settlement of a claim or toward
satisfaction of a judgment against a licensee, the license shall
be automatically suspended upon the effective date of an order
by the court authorizing payment from the fund. No licensee
shall be granted reinstatement until the licensee has repaid in
full, plus interest at the rate of 12 percent a year, twice the
amount paid from the fund on the licensee's account, and has
obtained a surety bond issued by an insurer authorized to
transact business in this state in the amount of at least
$40,000.

Sec. 95.

Minnesota Statutes 2004, section 345.47,
subdivision 3, is amended to read:

Subd. 3.

Securities.

Securities listed on an established
stock exchange shall be sold at the prevailing prices on the
exchange. Other securities may be sold over the counter at
prevailing prices or deleted text begin , with prior approval of the State Board of
Investment, deleted text end by another method the commissioner determines
advisable. United States government savings bonds and United
States war bonds shall be presented to the United States for
payment.

Sec. 96.

Minnesota Statutes 2004, section 345.47,
subdivision 3a, is amended to read:

Subd. 3a.

Holding period.

deleted text begin All securities presumed
abandoned under section 345.35 and delivered to the commissioner
must be held for at least three years before they are sold. A
person making a claim under this section is entitled to receive
either the securities delivered to the commissioner by the
holder, if they still remain in the hands of the commissioner,
or the proceeds received from the sale, but no person has any
claim under this section against the state, the holder, any
transfer agent, registrar, or other person acting for or on
behalf of a holder for any appreciation in the value of the
property occurring after delivery by the holder to the
commissioner. deleted text end new text begin If the property is of a type customarily sold on
a recognized market or of a type that may be sold over the
counter at prevailing prices, the commissioner may sell the
property without notice by publication or otherwise. The
commissioner may proceed with the liquidation after holding for
one year, with the exception of securities being held as the
result of an insurance company demutualization, these types of
securities may be sold upon receipt. This section grants to the
commissioner express authority to sell any property, including,
but not limited to, stocks, bonds, notes, bills, and all other
public or private securities. A person making a claim under
section 345.35 is entitled to receive the securities delivered
to the administrator by the holder, if they remain in the
custody of the administrator, or the net proceeds received from
sale, and is not entitled to receive any appreciation in the
value of the property occurring after sale by the commissioner.
The commissioner may liquidate all unclaimed securities
currently held in custody in accordance with this section.
new text end

Sec. 97.

Minnesota Statutes 2004, section 353.657,
subdivision 1, is amended to read:

Subdivision 1.

Generally.

In the event a member of the
police and fire fund dies from any cause before retirement or
after becoming disabled and receiving disability benefits, the
association shall grant survivor benefits to a surviving spouse,
as defined in section 353.01, subdivision 20, and who was
married to the member for a period of at least one year, except
that if death occurs in the line of duty no time limit is
required. new text begin For purposes of this section, line of duty also
includes active military service, as defined in section 190.05,
subdivision 5. new text end The association shall also grant survivor
benefits to a dependent child or children, as defined in section
353.01, subdivision 15.

Notwithstanding the definition of surviving spouse, a
former spouse of the member, if any, is entitled to a portion of
the monthly surviving spouse benefit if stipulated under the
terms of a marriage dissolution decree filed with the
association. If there is no surviving spouse or child or
children, a former spouse may be entitled to a lump-sum refund
payment under section 353.32, subdivision 1, if provided for in
a marriage dissolution decree but not a monthly surviving spouse
benefit despite the terms of a marriage dissolution decree filed
with the association.

The spouse and child or children are entitled to monthly
benefits as provided in the following subdivisions.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective immediately and
applies to members of the police and fire fund at any time on or
after September 11, 2001.
new text end

Sec. 98.

new text begin [354B.33] IRON RANGE RESOURCES AND
REHABILITATION; EARLY SEPARATION INCENTIVE PROGRAM
AUTHORIZATION.
new text end

new text begin (a) Notwithstanding any law to the contrary, the
commissioner of Iron Range resources and rehabilitation, in
consultation with the commissioner of employee relations, may
offer a targeted early separation incentive program for
employees of the commissioner who have attained the age of 60
years and have at least five years of allowable service credit
under chapter 352, or who have received credit for at least 30
years of allowable service under the provisions of chapter 352.
new text end

new text begin (b) The early separation incentive program may include one
or more of the following:
new text end

new text begin (1) employer-paid postseparation health, medical, and
dental insurance until age 65; and
new text end

new text begin (2) cash incentives that may, but are not required to be,
used to purchase additional years of service credit through the
Minnesota State Retirement System, to the extent that the
purchases are otherwise authorized by law.
new text end

new text begin (c) The commissioner of Iron Range resources and
rehabilitation shall establish eligibility requirements for
employees to receive an incentive.
new text end

new text begin (d) The commissioner of Iron Range Resources and
Rehabilitation, consistent with the established program
provisions under paragraph (b), and with the eligibility
requirements under paragraph (c), may designate specific
programs or employees as eligible to be offered the incentive
program.
new text end

new text begin (e) Acceptance of the offered incentive must be voluntary
on the part of the employee and must be in writing. The
incentive may only be offered at the sole discretion of the
commissioner of Iron Range resources and rehabilitation.
new text end

new text begin (f) The cost of the incentive is payable solely by funds
made available to the commissioner of Iron Range resources and
rehabilitation by law, but only on prior approval of the
expenditures by a majority of the Iron Range Resources and
Rehabilitation Board.
new text end

new text begin (g) This section expires June 30, 2006.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 99.

Minnesota Statutes 2004, section 357.021,
subdivision 1a, is amended to read:

Subd. 1a.

Transmittal of fees to commissioner of
finance.

(a) Every person, including the state of Minnesota and
all bodies politic and corporate, who shall transact any
business in the district court, shall pay to the court
administrator of said court the sundry fees prescribed in
subdivision 2. Except as provided in paragraph (d), the court
administrator shall transmit the fees monthly to the
commissioner of finance for deposit in the state treasury and
credit to the general fund. new text begin $30 of each fee collected in a
dissolution action under subdivision 2, clause (1), must be
deposited by the commissioner of finance in the special revenue
fund and is appropriated to the commissioner of employment and
economic development for the displaced homemaker program under
section 116L.96.
new text end

(b) In a county which has a screener-collector position,
fees paid by a county pursuant to this subdivision shall be
transmitted monthly to the county treasurer, who shall apply the
fees first to reimburse the county for the amount of the salary
paid for the screener-collector position. The balance of the
fees collected shall then be forwarded to the commissioner of
finance for deposit in the state treasury and credited to the
general fund. In a county in a judicial district under section
480.181, subdivision 1, paragraph (b), which has a
screener-collector position, the fees paid by a county shall be
transmitted monthly to the commissioner of finance for deposit
in the state treasury and credited to the general fund. A
screener-collector position for purposes of this paragraph is an
employee whose function is to increase the collection of fines
and to review the incomes of potential clients of the public
defender, in order to verify eligibility for that service.

(c) No fee is required under this section from the public
authority or the party the public authority represents in an
action for:

(1) child support enforcement or modification, medical
assistance enforcement, or establishment of parentage in the
district court, or in a proceeding under section 484.702;

(2) civil commitment under chapter 253B;

(3) the appointment of a public conservator or public
guardian or any other action under chapters 252A and 525;

(4) wrongfully obtaining public assistance under section
256.98 or 256D.07, or recovery of overpayments of public
assistance;

(5) court relief under chapter 260;

(6) forfeiture of property under sections 169A.63 and
609.531 to 609.5317;

(7) recovery of amounts issued by political subdivisions or
public institutions under sections 246.52, 252.27, 256.045,
256.25, 256.87, 256B.042, 256B.14, 256B.15, 256B.37, 260B.331,
and 260C.331, or other sections referring to other forms of
public assistance;

(8) restitution under section 611A.04; or

(9) actions seeking monetary relief in favor of the state
pursuant to section 16D.14, subdivision 5.

(d) The fees collected for child support modifications
under subdivision 2, clause (13), must be transmitted to the
county treasurer for deposit in the county general fund. The
fees must be used by the county to pay for child support
enforcement efforts by county attorneys.

Sec. 100.

Minnesota Statutes 2004, section 357.021,
subdivision 2, is amended to read:

Subd. 2.

Fee amounts.

The fees to be charged and
collected by the court administrator shall be as follows:

(1) In every civil action or proceeding in said court,
including any case arising under the tax laws of the state that
could be transferred or appealed to the Tax Court, the
plaintiff, petitioner, or other moving party shall pay, when the
first paper is filed for that party in said action, a fee of
deleted text begin $235 deleted text end new text begin $240, except in marriage dissolution actions the fee is
$270 new text end .

The defendant or other adverse or intervening party, or any
one or more of several defendants or other adverse or
intervening parties appearing separately from the others, shall
pay, when the first paper is filed for that party in said
action, a fee of deleted text begin $235 deleted text end new text begin $240, except in marriage dissolution
actions the fee is $270 new text end .

The party requesting a trial by jury shall pay $75.

The fees above stated shall be the full trial fee
chargeable to said parties irrespective of whether trial be to
the court alone, to the court and jury, or disposed of without
trial, and shall include the entry of judgment in the action,
but does not include copies or certified copies of any papers so
filed or proceedings under chapter 103E, except the provisions
therein as to appeals.

(2) Certified copy of any instrument from a civil or
criminal proceeding, $10, and $5 for an uncertified copy.

(3) Issuing a subpoena, $12 for each name.

(4) Filing a motion or response to a motion in civil,
family, excluding child support, and guardianship cases, $55.

(5) Issuing an execution and filing the return thereof;
issuing a writ of attachment, injunction, habeas corpus,
mandamus, quo warranto, certiorari, or other writs not
specifically mentioned, $40.

(6) Issuing a transcript of judgment, or for filing and
docketing a transcript of judgment from another court, $30.

(7) Filing and entering a satisfaction of judgment, partial
satisfaction, or assignment of judgment, $5.

(8) Certificate as to existence or nonexistence of
judgments docketed, $5 for each name certified to.

(9) Filing and indexing trade name; or recording basic
science certificate; or recording certificate of physicians,
osteopaths, chiropractors, veterinarians, or optometrists, $5.

(10) For the filing of each partial, final, or annual
account in all trusteeships, $40.

(11) For the deposit of a will, $20.

(12) For recording notary commission, $100, of which,
notwithstanding subdivision 1a, paragraph (b), $80 must be
forwarded to the commissioner of finance to be deposited in the
state treasury and credited to the general fund.

(13) Filing a motion or response to a motion for
modification of child support, a fee fixed by rule or order of
the Supreme Court.

(14) All other services required by law for which no fee is
provided, such fee as compares favorably with those herein
provided, or such as may be fixed by rule or order of the court.

(15) In addition to any other filing fees under this
chapter, a surcharge in the amount of $75 must be assessed in
accordance with section 259.52, subdivision 14, for each
adoption petition filed in district court to fund the fathers'
adoption registry under section 259.52.

The fees in clauses (3) and (5) need not be paid by a
public authority or the party the public authority represents.

Sec. 101.

Minnesota Statutes 2004, section 373.40,
subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(a) "Bonds" means an obligation as defined under section
475.51.

(b) "Capital improvement" means acquisition or betterment
of public lands, development rights in the form of conservation
easements under chapter 84C, buildings, or other improvements
within the county for the purpose of a county courthouse,
administrative building, health or social service facility,
correctional facility, jail, law enforcement center, hospital,
morgue, library, park, qualified indoor ice arena, and roads and
bridges. An improvement must have an expected useful life of
five years or more to qualify. "Capital improvement" does not
include light rail transit or any activity related to it or a
recreation or sports facility building (such as, but not limited
to, a gymnasium, ice arena, racquet sports facility, swimming
pool, exercise room or health spa), unless the building is part
of an outdoor park facility and is incidental to the primary
purpose of outdoor recreation.

(c) deleted text begin "Commissioner" means the commissioner of employment and
economic development.
deleted text end

deleted text begin (d) deleted text end "Metropolitan county" means a county located in the
seven-county metropolitan area as defined in section 473.121 or
a county with a population of 90,000 or more.

deleted text begin (e) deleted text end new text begin (d) new text end "Population" means the population established by
the most recent of the following (determined as of the date the
resolution authorizing the bonds was adopted):

(1) the federal decennial census,

(2) a special census conducted under contract by the United
States Bureau of the Census, or

(3) a population estimate made either by the Metropolitan
Council or by the state demographer under section 4A.02.

deleted text begin (f) deleted text end new text begin (e) new text end "Qualified indoor ice arena" means a facility that
meets the requirements of section 373.43.

deleted text begin (g) deleted text end new text begin (f) new text end "Tax capacity" means total taxable market value,
but does not include captured market value.

Sec. 102.

Minnesota Statutes 2004, section 373.40,
subdivision 3, is amended to read:

Subd. 3.

Capital improvement plan.

(a) A county may
adopt a capital improvement plan. The plan must cover at least
the five-year period beginning with the date of its adoption.
The plan must set forth the estimated schedule, timing, and
details of specific capital improvements by year, together with
the estimated cost, the need for the improvement, and sources of
revenues to pay for the improvement. In preparing the capital
improvement plan, the county board must consider for each
project and for the overall plan:

(1) the condition of the county's existing infrastructure,
including the projected need for repair or replacement;

(2) the likely demand for the improvement;

(3) the estimated cost of the improvement;

(4) the available public resources;

(5) the level of overlapping debt in the county;

(6) the relative benefits and costs of alternative uses of
the funds;

(7) operating costs of the proposed improvements; and

(8) alternatives for providing services more efficiently
through shared facilities with other counties or local
government units.

(b) The capital improvement plan and annual amendments to
it deleted text begin must be deleted text end new text begin are not effective until new text end approved by the county board
after public hearing. deleted text begin The county must submit the capital
improvement plan to the community development division of the
Department of Employment and Economic Development. The plan is
not effective if the commissioner disapproves the plan within 90
days after it was submitted. If the commissioner has not
disapproved the plan within 90 days after its submission, the
plan is deemed approved and effective. The commissioner shall
disapprove a capital improvement plan only if the commissioner
determines (1) that the planned improvements cannot be financed
within the limits specified in subdivision 4, or (2) the county
in preparing the plan did not consider the factors listed in
this subdivision or failed to gather the information necessary
to evaluate the plan under the factors, or (3) the proposed
improvements will result in unnecessary duplication of public
facilities provided by other units of government in the region
or there is insufficient demand for the facility. If the plan
is disapproved by the commissioner and the county board does not
withdraw the plan, the capital improvement plan must be
submitted to the voters for approval. If a majority of the
voters approve, the plan is approved and effective.
deleted text end

Sec. 103.

Minnesota Statutes 2004, section 462A.05,
subdivision 3a, is amended to read:

Subd. 3a.

Refinancing deleted text begin nonprofits deleted text end ; residential housing.

It may refinance the existing indebtedness of deleted text begin nonprofit
entities, as defined by the agency deleted text end new text begin owners of rental property new text end ,
secured by residential housing for occupancy by persons and
families of low and moderate income, if refinancing is
determined by the agency to be necessary to reduce housing costs
to an affordable level or to maintain the supply of affordable
low-income housing. The authority granted in this subdivision
is in addition to and not in limitation of the authority granted
in section 462A.05, subdivision 14.

Sec. 104.

Minnesota Statutes 2004, section 462A.33,
subdivision 2, is amended to read:

Subd. 2.

Eligible recipients.

Challenge grants or loans
may be made to a city, new text begin a federally recognized American Indian
tribe or subdivision located in Minnesota, a tribal housing
corporation, new text end a private developer, a nonprofit organization, or
the owner of the housing, including individuals. For the
purpose of this section, "city" has the meaning given it in
section 462A.03, subdivision 21. To the extent practicable,
grants and loans shall be made so that an approximately equal
number of housing units are financed in the metropolitan area
and in the nonmetropolitan area.

Sec. 105.

Minnesota Statutes 2004, section 469.050,
subdivision 5, is amended to read:

Subd. 5.

Pay.

A commissioner, including the president,
must be deleted text begin paid $35 deleted text end new text begin compensated as provided in section 15.0575,
subdivision 3, new text end for each regular or special port authority
meeting attended deleted text begin and shall receive reimbursement for expenses
incurred while performing duties deleted text end . The advisory members of the
Duluth authority from the legislature must not be paid for their
service to the authority.

Sec. 106.

Minnesota Statutes 2004, section 469.1082,
subdivision 1, is amended to read:

Subdivision 1.

Authority to create.

A county deleted text begin located
outside the metropolitan area deleted text end may form a county economic
development authority or grant a housing and redevelopment
authority the powers specified in subdivision 4, clause (2), if
it receives a recommendation to do so from a committee formed
under subdivision 2. An economic development authority
established under this section has all the powers and rights of
an authority under sections 469.090 to 469.1081, except the
authority granted under section 469.094 if so limited under
subdivision 4. This section is in addition to any other
authority to create a county economic development authority or
service provider.

new text begin Nothing in this section shall alter or impair any grant of
powers, or any other authority granted to a community
development agency, a county housing and redevelopment
authority, or any county as provided in section 383D.41, Laws
1974, chapter 473, as amended, or Laws 1980, chapter 482, as
amended. Any county that has granted economic development
powers to a community development agency or a county housing and
redevelopment authority under any of these provisions may not
form a county economic development authority or grant a housing
and redevelopment authority the powers specified in subdivision
4, clause (2).
new text end

Sec. 107.

Minnesota Statutes 2004, section 469.310,
subdivision 11, is amended to read:

Subd. 11.

Qualified business.

(a) deleted text begin "Qualified business"
means deleted text end A person carrying on a trade or business at a place of
business located within a job opportunity building zone new text begin is a
qualified business for the purposes of sections 469.310 to
469.320 according to the criteria in paragraphs (b) to (f) new text end .

new text begin (b) A person is a qualified business only on those parcels
of land for which the person has entered into a business subsidy
agreement, as required under section 469.313, with the
appropriate local government unit in which the parcels are
located.
new text end

new text begin (c) Prior to execution of the business subsidy agreement,
the local government unit must consider the following factors:
new text end

new text begin (1) how wages compare to the regional industry average;
new text end

new text begin (2) the number of jobs that will be provided relative to
overall employment in the community;
new text end

new text begin (3) the economic outlook for the industry the business will
engage in;
new text end

new text begin (4) sales that will be generated from outside the state of
Minnesota;
new text end

new text begin (5) how the business will build on existing regional
strengths or diversify the regional economy;
new text end

new text begin (6) how the business will increase capital investment in
the zone; and
new text end

new text begin (7) any other criteria the commissioner deems necessary.
new text end

deleted text begin (b) deleted text end new text begin (d) new text end A person that relocates a trade or business from
outside a job opportunity building zone into a zone is not a
qualified business deleted text begin , deleted text end unless the business new text begin meets all of the
requirements of paragraphs (b) and (c) and new text end :

(1) deleted text begin (i) deleted text end increases full-time employment in the first full
year of operation within the job opportunity building zone by deleted text begin at
least deleted text end new text begin a minimum of five jobs or new text end 20 percent new text begin , whichever is
greater, new text end measured relative to the operations that were relocated
and maintains the required level of employment for each year the
zone designation applies; deleted text begin or
deleted text end

deleted text begin (ii) makes a capital investment in the property located
within a zone equivalent to ten percent of the gross revenues of
operation that were relocated in the immediately preceding
taxable year; deleted text end and

(2) enters a binding written agreement with the
commissioner that:

(i) pledges the business will meet the requirements of
clause (1);

(ii) provides for repayment of all tax benefits enumerated
under section 469.315 to the business under the procedures in
section 469.319, if the requirements of clause (1) are not met
for the taxable year or for taxes payable during the year in
which the requirements were not met; and

(iii) contains any other terms the commissioner determines
appropriate.

new text begin (e) The commissioner may waive the requirements under
paragraph (d), clause (1), if the commissioner determines that
the qualified business will substantially achieve the factors
under this subdivision.
new text end

new text begin (f) A business is not a qualified business if, at its
location or locations in the zone, the business is primarily
engaged in making retail sales to purchasers who are physically
present at the business's zone location.
new text end

new text begin (g) A qualifying business must pay each employee
compensation, including benefits not mandated by law, that on an
annualized basis is equal to at least 110 percent of the federal
poverty level for a family of four.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment and applies to any business entering a
business subsidy agreement for a job opportunity development
zone after that date, except that paragraph (b) is effective
retroactively from June 9, 2003.
new text end

Sec. 108.

Minnesota Statutes 2004, section 469.319,
subdivision 1, is amended to read:

Subdivision 1.

Repayment obligation.

A business must
repay the amount of the total tax reduction listed in section
469.315 and any refund under section 469.318 in excess of tax
liability, received during the two years immediately before it
ceased to operate in the zone, if the business:

(1) received tax reductions authorized by section 469.315;
and

(2)(i) did not meet the goals specified in an agreement
entered into with the applicant that states any obligation the
qualified business must fulfill in order to be eligible for tax
benefits. The commissioner new text begin of employment and economic
development new text end may extend for up to one year the period for meeting
any goals provided in an agreement. The applicant may extend
the period for meeting other goals by documenting in writing the
reason for the extension and attaching a copy of the document to
its next annual report to the commissioner new text begin of employment and
economic development new text end ; or

(ii) ceased to operate its facility located within the job
opportunity building zone or otherwise ceases to be or is not a
qualified business.

new text begin EFFECTIVE DATE. new text end

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

Sec. 109.

Minnesota Statutes 2004, section 469.319, is
amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Reconciliation. new text end

new text begin Where this section is
inconsistent with section 116J.994, subdivision 3, paragraph
(e), or 6, or any other provisions of sections 116J.993 to
116J.995, this section prevails.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 110.

Minnesota Statutes 2004, section 469.320,
subdivision 3, is amended to read:

Subd. 3.

Remedies.

If the commissioner determines, based
on a report filed under subdivision 1 or other available
information, that a zone or subzone is failing to meet its
performance goals, the commissioner may take any actions the
commissioner determines appropriate, including modification of
the boundaries of the zone or a subzone or termination of the
zone or a subzone. Before taking any action, the commissioner
shall consult with the applicant and the affected local
government units, including notifying them of the proposed
actions to be taken. deleted text begin The commissioner shall publish any order
modifying a zone in the State Register and on the Internet. deleted text end The
applicant may appeal the commissioner's order under the
contested case procedures of chapter 14.

new text begin EFFECTIVE DATE. new text end

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

Sec. 111.

Minnesota Statutes 2004, section 469.330,
subdivision 11, is amended to read:

Subd. 11.

Qualified business.

(a) "Qualified business"
means a person carrying on a trade or business at a
biotechnology and health sciences industry facility located
within a biotechnology and health sciences industry zone. new text begin A
person is a qualified business only on those parcels of land for
which it has entered into a business subsidy agreement, as
required under section 469.333, with the appropriate local
government unit in which the parcels are located.
new text end

(b) A person that relocates a biotechnology and health
sciences industry facility from outside a biotechnology and
health sciences industry zone into a zone is not a qualified
business, unless the business:

(1)(i) increases full-time employment in the first full
year of operation within the biotechnology and health sciences
industry zone by at least 20 percent measured relative to the
operations that were relocated and maintains the required level
of employment for each year the zone designation applies; or

(ii) makes a capital investment in the property located
within a zone equivalent to ten percent of the gross revenues of
operation that were relocated in the immediately preceding
taxable year; and

(2) enters a binding written agreement with the
commissioner that:

(i) pledges the business will meet the requirements of
clause (1);

(ii) provides for repayment of all tax benefits enumerated
under section 469.336 to the business under the procedures in
section 469.340, if the requirements of clause (1) are not met;
and

(iii) contains any other terms the commissioner determines
appropriate.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from June 9, 2003.
new text end

Sec. 112.

Minnesota Statutes 2004, section 469.340,
subdivision 1, is amended to read:

Subdivision 1.

Repayment obligation.

A business must
repay the amount of the tax reduction listed in section 469.336
and any refunds under sections 469.338 and 469.339 in excess of
tax liability, received during the two years immediately before
it ceased to operate in the zone, if the business:

(1) received tax reductions authorized by section 469.336;
and

(2)(i) did not meet the goals specified in an agreement
entered into with the applicant that states any obligation the
qualified business must fulfill in order to be eligible for tax
benefits. The commissioner new text begin of employment and economic
development new text end may extend for up to one year the period for meeting
any goals provided in an agreement. The applicant may extend
the period for meeting other goals by documenting in writing the
reason for the extension and attaching a copy of the document to
its next annual report to the commissioner new text begin of employment and
economic development new text end ; or

(ii) ceased to operate its facility located within the
biotechnology and health sciences industry zone or otherwise
ceases to be or is not a qualified business.

new text begin EFFECTIVE DATE. new text end

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

Sec. 113.

Minnesota Statutes 2004, section 471.999, is
amended to read:

471.999 REPORT TO LEGISLATURE.

The commissioner of employee relations shall report to the
legislature by January 1 of each year on the status of
compliance with section 471.992, subdivision 1, by governmental
subdivisions.

The report must include a list of the political
subdivisions in compliance with section 471.992, subdivision 1,
and the estimated cost of compliance. The report must also
include a list of political subdivisions found by the
commissioner to be not in compliance, the basis for that
finding, recommended changes to achieve compliance, estimated
cost of compliance, and recommended penalties, if any. The
commissioner's report must include a list of subdivisions that
did not comply with the reporting requirements of this section.
The commissioner may request, and a subdivision shall provide,
any additional information needed for the preparation of a
report under this subdivision.

Notwithstanding any rule to the contrary, beginning in
2005, a political subdivision must report on its compliance with
the requirements of sections 471.991 to 471.999 no more
frequently than once every deleted text begin five deleted text end new text begin three new text end years. No report from a
political subdivision is required for 2003 and 2004.

Sec. 114.

Minnesota Statutes 2004, section 517.08,
subdivision 1b, is amended to read:

Subd. 1b.

Term of license; fee; premarital education.

(a) The local registrar shall examine upon oath the party
applying for a license relative to the legality of the
contemplated marriage. If at the expiration of a five-day
period, on being satisfied that there is no legal impediment to
it, including the restriction contained in section 259.13, the
local registrar shall issue the license, containing the full
names of the parties before and after marriage, and county and
state of residence, with the county seal attached, and make a
record of the date of issuance. The license shall be valid for
a period of six months. In case of emergency or extraordinary
circumstances, a judge of the district court of the county in
which the application is made, may authorize the license to be
issued at any time before the expiration of the five days.
Except as provided in paragraph (b), the local registrar shall
collect from the applicant a fee of deleted text begin $85 deleted text end new text begin $100 new text end for administering
the oath, issuing, recording, and filing all papers required,
and preparing and transmitting to the state registrar of vital
statistics the reports of marriage required by this section. If
the license should not be used within the period of six months
due to illness or other extenuating circumstances, it may be
surrendered to the local registrar for cancellation, and in that
case a new license shall issue upon request of the parties of
the original license without fee. A local registrar who
knowingly issues or signs a marriage license in any manner other
than as provided in this section shall pay to the parties
aggrieved an amount not to exceed $1,000.

(b) The marriage license fee for parties who have completed
at least 12 hours of premarital education is deleted text begin $20 deleted text end new text begin $30 new text end . In order
to qualify for the reduced fee, the parties must submit a signed
and dated statement from the person who provided the premarital
education confirming that it was received. The premarital
education must be provided by a licensed or ordained minister or
the minister's designee, a person authorized to solemnize
marriages under section 517.18, or a person authorized to
practice marriage and family therapy under section 148B.33. The
education must include the use of a premarital inventory and the
teaching of communication and conflict management skills.

(c) The statement from the person who provided the
premarital education under paragraph (b) must be in the
following form:

"I, (name of educator), confirm that (names of both
parties) received at least 12 hours of premarital education that
included the use of a premarital inventory and the teaching of
communication and conflict management skills. I am a licensed
or ordained minister, a person authorized to solemnize marriages
under Minnesota Statutes, section 517.18, or a person licensed
to practice marriage and family therapy under Minnesota
Statutes, section 148B.33."

The names of the parties in the educator's statement must
be identical to the legal names of the parties as they appear in
the marriage license application. Notwithstanding section
138.17, the educator's statement must be retained for seven
years, after which time it may be destroyed.

(d) If section 259.13 applies to the request for a marriage
license, the local registrar shall grant the marriage license
without the requested name change. Alternatively, the local
registrar may delay the granting of the marriage license until
the party with the conviction:

(1) certifies under oath that 30 days have passed since
service of the notice for a name change upon the prosecuting
authority and, if applicable, the attorney general and no
objection has been filed under section 259.13; or

(2) provides a certified copy of the court order granting
it. The parties seeking the marriage license shall have the
right to choose to have the license granted without the name
change or to delay its granting pending further action on the
name change request.

Sec. 115.

Minnesota Statutes 2004, section 517.08,
subdivision 1c, is amended to read:

Subd. 1c.

Disposition of license fee.

(a) Of the
marriage license fee collected pursuant to subdivision 1b,
paragraph (a), $15 must be retained by the county. The local
registrar must pay deleted text begin $70 deleted text end new text begin $85 new text end to the commissioner of finance to be
deposited as follows:

(1) $50 in the general fund;

(2) $3 in the special revenue fund to be appropriated to
the commissioner of education for parenting time centers under
section 119A.37;

(3) $2 in the special revenue fund to be appropriated to
the commissioner of health for developing and implementing the
MN ENABL program under section 145.9255;

(4) deleted text begin $10 deleted text end new text begin $25 new text end in the special revenue fund deleted text begin to be deleted text end new text begin is
new text end appropriated to the commissioner of employment and economic
development for the displaced homemaker program under section
116L.96; and

(5) $5 in the special revenue fund deleted text begin to be deleted text end new text begin is new text end appropriated to
the commissioner of human services for the Minnesota Healthy
Marriage and Responsible Fatherhood Initiative under section
256.742.

(b) Of the deleted text begin $20 deleted text end new text begin $30 new text end fee under subdivision 1b, paragraph (b),
$15 must be retained by the county. The local registrar must
pay deleted text begin $5 deleted text end new text begin $15 new text end to the commissioner of finance to be deleted text begin distributed
deleted text end new text begin deposited new text end as new text begin follows:
new text end

new text begin (1) $5 as new text end provided in paragraph (a), clauses (2) and (3) new text begin ;
and
new text end

new text begin (2) $10 in the special revenue fund is appropriated to the
commissioner of employment and economic development for the
displaced homemaker program under section 116L.96 new text end .

(c) The increase in the marriage license fee under
paragraph (a) provided for in Laws 2004, chapter 273, and
disbursement of the increase in that fee to the special fund for
the Minnesota Healthy Marriage and Responsible Fatherhood
Initiative under paragraph (a), clause (5), is contingent upon
the receipt of federal funding under United States Code, title
42, section 1315, for purposes of the initiative.

Sec. 116.

Minnesota Statutes 2004, section 609.849, as
added by Laws 2005, chapter 136, article 17, section 50, is
amended to read:

609.849 [RAILROAD THAT OBSTRUCTS TREATMENT OF AN INJURED
WORKER.]

(a) It shall be unlawful for a railroad or person employed
by a railroad deleted text begin negligently or deleted text end new text begin to new text end intentionally deleted text begin to deleted text end :

(1) deny, delay, or interfere with medical treatment or
first aid treatment to an employee of a railroad who has been
injured during employment; or

(2) discipline, harass, or intimidate an employee to
discourage the employee from receiving medical attention or
threaten to discipline an employee who has been injured during
employment for requesting medical treatment or first aid
treatment.

(b) Nothing in this section shall deny a railroad company
or railroad employee from making a reasonable inquiry of an
injured employee about the circumstance of an injury in order to
gather information necessary to identify a safety hazard.

(c) It is not a violation under this section for a railroad
company or railroad employee to enforce safety regulations.

(d) A railroad or a person convicted of a violation of
paragraph (a), clause (1) or (2), is guilty of a deleted text begin gross
deleted text end misdemeanor and may be deleted text begin sentenced to imprisonment for not more
than one year or to payment of a fine of deleted text end new text begin fined new text end not more than
deleted text begin $3,000, or both deleted text end new text begin $1,000 but is not subject to an incarcerative
sanction new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005,
and applies to crimes committed on or after that date.
new text end

Sec. 117.

Laws 1999, chapter 224, section 7, as amended by
Laws 2004, chapter 261, article 6, section 3, is amended to read:

Sec. 7. new text begin SUNSET.
new text end

Sections 2 and 4 expire on August 1, deleted text begin 2005 deleted text end new text begin 2006 new text end , and
Minnesota Statutes 1998, sections 237.63, 237.65, and 237.68,
expire on December 31, 2004.

new text begin EFFECTIVE DATE. new text end

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

Sec. 118.

Laws 2003, chapter 128, article 1, section 172,
is amended to read:

Sec. 172 new text begin TEMPORARY PETROFUND FEE EXEMPTION FOR MINNESOTA
COMMERCIAL AIRLINES.
new text end

(a) A commercial airline providing regularly scheduled jet
service and with its corporate headquarters in Minnesota is
exempt from the fee established in Minnesota Statutes, section
115C.08, subdivision 3, until July 1, deleted text begin 2005 deleted text end new text begin 2007 new text end , provided the
airline develops a plan approved by the commissioner of commerce
demonstrating that the savings from this exemption will go
towards minimizing job losses in Minnesota, and to support the
airline's efforts to avoid filing for federal bankruptcy
protections.

(b) A commercial airline exempted from the fee is
ineligible to receive reimbursement under Minnesota Statutes,
chapter 115C, until July 1, deleted text begin 2005 deleted text end new text begin 2007 new text end . A commercial airline
that has a release during the fee exemption period is ineligible
to receive reimbursement under Minnesota Statutes, chapter 115C,
for the costs incurred in response to that release.

Sec. 119.

Laws 2005, chapter 97, article 13, section 1,
subdivision 3, is amended to read:

Subd. 3.

Hydrogen.

"Hydrogen" means hydrogen produced
using deleted text begin native deleted text end new text begin renewable new text end energy sources.

Sec. 120.

Laws 2005, chapter 97, article 13, section 2,
subdivision 1, is amended to read:

Subdivision 1.

Early purchase and deployment of hydrogen,
fuel cells, and related technologies by the state.

The
Department of new text begin Commerce in conjunction with the Department of
new text end Administration shall identify opportunities for demonstrating
the use of hydrogen new text begin , new text end fuel cells new text begin and related technologies new text end within
state-owned facilities, vehicle fleets, and operations.

The Department new text begin of Commerce new text end shall new text begin recommend to the
Department of Administration, when feasible, the new text end purchase and
deleted text begin demonstrate deleted text end new text begin demonstration of new text end hydrogen, fuel cells, and related
technologies in ways that strategically contribute to realizing
Minnesota's hydrogen economy goal as set forth in section
216B.013, and which contribute to the following nonexclusive
list of objectives:

(1) provide needed performance data to the marketplace;

(2) identify code and regulatory issues to be resolved;

(3) deleted text begin advance or validate a critical area of research;
deleted text end

deleted text begin (4) deleted text end foster economic development and job creation in the
state;

deleted text begin (5) deleted text end new text begin (4) new text end raise public awareness of hydrogen, fuel cells, and
related technologies; or

deleted text begin (6) deleted text end new text begin (5) new text end reduce emissions of carbon dioxide and other
pollutants.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective on the same
date that Laws 2005, chapter 97, article 13, section 2,
subdivision 1, is effective.
new text end

Sec. 121. new text begin SESQUICENTENNIAL COMMISSION.
new text end

new text begin Subdivision 1. new text end

new text begin Commission; purpose. new text end

new text begin The Minnesota
Sesquicentennial Commission is established to plan for
activities relating to Minnesota's 150th anniversary of
statehood. The commission shall create a plan for capital
improvements, celebratory activities, and public engagement in
every county in the state of Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The commission shall consist of 17
members who shall serve until the completion of the
sesquicentennial year of statehood, appointed as follows:
new text end

new text begin (1) nine members appointed by the governor, representing
major corporate, nonprofit, and public sectors of the state,
selected from all parts of the state;
new text end

new text begin (2) two members appointed by the speaker of the house of
representatives;
new text end

new text begin (3) two members appointed by the minority leader of the
house of representatives;
new text end

new text begin (4) two members from the majority party in the senate,
appointed by the Subcommittee on Committees; and
new text end

new text begin (5) two members from the minority party in the senate,
appointed by the Subcommittee on Committees.
new text end

new text begin Subd. 3. new text end

new text begin Compensation; operation. new text end

new text begin Members shall select a
chair from the membership of the commission. The chair shall
convene all meetings and set the agenda for the commission. The
Minnesota Historical Society shall provide office space and
staff support for the commission, and shall cooperate with the
University of Minnesota and Minnesota State Colleges and
Universities to support the programs of the commission.
Meetings shall be at the call of the chair. The commission may
appoint an advisory council to advise and assist the commission
with its duties. Members shall receive no compensation for
service on the Sesquicentennial Commission. Members appointed
by the governor may be reimbursed for expenses under Minnesota
Statutes, section 15.059, subdivision 3.
new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin The commission shall have the following
duties:
new text end

new text begin (1) to present to the governor and legislature a plan for
capital grants to pay for capital improvements on Minnesota's
historic public and private buildings, to be known as
sesquicentennial grants;
new text end

new text begin (2) to seek funding for activities to celebrate the 150th
anniversary of statehood, and to form partnerships with private
parties to further this mission; and
new text end

new text begin (3) to present an annual report to the governor and
legislature outlining progress made towards the celebration of
the sesquicentennial.
new text end

new text begin Subd. 5. new text end

new text begin Commemorative coin. new text end

new text begin The commission may arrange
for design, production, distribution, marketing, and sale of a
commemorative coin. Proceeds from sale of the commemorative
coin are appropriated to the commission.
new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin The commission shall continue to
operate until January 30, 2009, at which time it shall expire.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 122. new text begin SURPLUS STATE LAND; REDWOOD COUNTY.
new text end

new text begin Notwithstanding Minnesota Statutes, section 645.021,
subdivision 3, the local approval requirement in Minnesota
Statutes, chapter 262, article 3, section 26, is revived and
available until January 2, 2007.
new text end

Sec. 123. new text begin INSTRUCTION TO REVISOR.
new text end

new text begin The revisor of statutes shall renumber Minnesota Statutes,
section 239.05, as section 239.051, alphabetize the definitions,
and correct any cross-references to that section accordingly.
new text end

Sec. 124. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2004, sections 45.0295; 116J.573;
116J.58, subdivision 3; 116L.05, subdivision 4; 178.12; 239.05,
subdivisions 6a and 6b; and 462C.15, are repealed.
new text end

new text begin (b) Laws 1999, chapter 125, section 4, as amended by Laws
2002, chapter 398, section 7, is repealed.
new text end

ARTICLE 5

REGULATION OF SERVICE CONTRACTS

Section 1.

new text begin [59B.01] SCOPE AND PURPOSE.
new text end

new text begin (a) The purpose of this chapter is to create a legal
framework within which service contracts may be sold in this
state.
new text end

new text begin (b) The following are exempt from this chapter:
new text end

new text begin (1) warranties;
new text end

new text begin (2) maintenance agreements;
new text end

new text begin (3) warranties, service contracts, or maintenance
agreements offered by public utilities, as defined in section
216B.02, subdivision 4, or an entity or operating unit owned by
or under common control with a public utility;
new text end

new text begin (4) service contracts sold or offered for sale to persons
other than consumers;
new text end

new text begin (5) service contracts on tangible property where the
tangible property for which the service contract is sold has a
purchase price of $250 or less, exclusive of sales tax;
new text end

new text begin (6) motor vehicle service contracts as defined in section
65B.29, subdivision 1, paragraph (1);
new text end

new text begin (7) service contracts for home security equipment installed
by a licensed technology systems contractor; and
new text end

new text begin (8) motor club membership contracts that typically provide
roadside assistance services to motorists stranded for reasons
that include, but are not limited to, mechanical breakdown or
adverse road conditions.
new text end

new text begin (c) The types of agreements referred to in paragraph (b)
are not subject to chapters 60A to 79A, except as otherwise
specifically provided by law.
new text end

Sec. 2.

new text begin [59B.02] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin For the purposes of this chapter,
the terms defined in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Administrator. new text end

new text begin "Administrator" means the person
who is responsible for the administration of the service
contracts or the service contracts plan or who is responsible
for any filings required by this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the
commissioner of commerce.
new text end

new text begin Subd. 4. new text end

new text begin Consumer. new text end

new text begin "Consumer" means a natural person who
buys, other than for purposes of resale, any tangible personal
property that is distributed in commerce and that is normally
used for personal, family, or household purposes and not for
business or research purposes.
new text end

new text begin Subd. 5. new text end

new text begin Maintenance agreement. new text end

new text begin "Maintenance agreement"
means a contract of limited duration that provides for scheduled
maintenance only.
new text end

new text begin Subd. 6. new text end

new text begin Person. new text end

new text begin "Person" means an individual,
partnership, corporation, incorporated or unincorporated
association, joint stock company, reciprocal, syndicate, or any
similar entity or combination of entities acting in concert.
new text end

new text begin Subd. 7. new text end

new text begin Premium. new text end

new text begin "Premium" means the consideration paid
to an insurer for a reimbursement insurance policy.
new text end

new text begin Subd. 8. new text end

new text begin Provider. new text end

new text begin "Provider" means a person who is
contractually obligated to the service contract holder under the
terms of the service contract.
new text end

new text begin Subd. 9. new text end

new text begin Provider fee. new text end

new text begin "Provider fee" means the
consideration paid for a service contract.
new text end

new text begin Subd. 10. new text end

new text begin Reimbursement insurance policy. new text end

new text begin "Reimbursement
insurance policy" means a policy of insurance issued to a
provider to either provide reimbursement to the provider under
the terms of the insured service contracts issued or sold by the
provider or, in the event of the provider's nonperformance, to
pay on behalf of the provider all covered contractual
obligations incurred by the provider under the terms of the
insured service contracts issued or sold by the provider.
new text end

new text begin Subd. 11. new text end

new text begin Service contract. new text end

new text begin "Service contract" means a
contract or agreement for a separately stated consideration for
a specific duration to perform the repair, replacement, or
maintenance of property or indemnification for repair,
replacement, or maintenance, for the operational or structural
failure due to a defect in materials, workmanship, or normal
wear and tear, with or without additional provisions for
incidental payment of indemnity under limited circumstances.
Service contracts may provide for the repair, replacement, or
maintenance of property for damage resulting from power surges
and accidental damage from handling.
new text end

new text begin Subd. 12. new text end

new text begin Service contract holder or contract
holder. new text end

new text begin "Service contract holder" or "contract holder" means a
person who is the purchaser or holder of a service contract.
new text end

new text begin Subd. 13. new text end

new text begin Warranty. new text end

new text begin "Warranty" means a warranty made
solely by the manufacturer, importer, or seller of property or
services without consideration, that is not negotiated or
separated from the sale of the product, and is incidental to the
sale of the product, that guarantees indemnity for defective
parts, mechanical or electrical breakdown, labor, or other
remedial measures, such as repair or replacement of the property
or repetition of services.
new text end

Sec. 3.

new text begin [59B.03] REQUIREMENTS FOR TRANSACTING BUSINESS.
new text end

new text begin Subdivision 1. new text end

new text begin Appointment of administrator. new text end

new text begin A provider
may, but is not required to, appoint an administrator or other
designee to be responsible for any or all of the administration
of service contracts and compliance with this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Contract copies and receipts. new text end

new text begin Service contracts
must not be issued, sold, or offered for sale in this state
unless the provider has:
new text end

new text begin (1) provided a receipt for, or other written evidence of,
the purchase of the service contract to the contract holder;
new text end

new text begin (2) provided a copy of the service contract to the service
contract holder within a reasonable period of time from the date
of purchase; and
new text end

new text begin (3) complied with this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Registration. new text end

new text begin Each provider of service
contracts sold in this state shall file a registration with the
commissioner on a form prescribed by the commissioner. Each
provider shall pay to the commissioner a fee in the amount of
$750 annually.
new text end

new text begin Subd. 4. new text end

new text begin Financial requirements. new text end

new text begin In order to ensure the
faithful performance of a provider's obligations to its contract
holders, each provider is responsible for complying with the
requirements of one of the following:
new text end

new text begin (1) insure all service contracts under a reimbursement
insurance policy issued by an insurer authorized to transact
insurance in this state, a risk retention group, as that term is
defined in United States Code, title 15, section 3901(A)(4), as
long as that risk retention group is registered pursuant to
section 60E.03 or 60E.04 as applicable, and is in full
compliance with the federal Liability Risk Retention Act of
1986, United States Code, title 15, section 3901, et al., or
issued pursuant to sections 60A.195 to 60A.209, and either:
new text end

new text begin (i) the insurer or risk retention group shall, at the time
the policy is filed with the commissioner, and continuously
thereafter, maintain surplus as to policyholders and paid-in
capital of at least $15,000,000, and annually file audited
financial statements with the commissioner; or
new text end

new text begin (ii) the commissioner may authorize an insurer or risk
retention group that has surplus as to policyholders and paid-in
capital of less than $15,000,000 but at least equal to
$10,000,000 to issue the insurance required by this section if
the insurer or risk retention group demonstrates to the
satisfaction of the commissioner that the company maintains a
ratio of direct written premiums, wherever written, to surplus
as to policyholders and paid-in capital of not greater than
3-to-1; or
new text end

new text begin (2)(i) maintain a funded reserve account for obligations
under contracts issued and outstanding in this state. The
reserves must not be less than 40 percent of gross consideration
received, less claims paid, on the sale of the service contract
for all in-force contracts. The reserve account is subject to
examination and review by the commissioner; and
new text end

new text begin (ii) place in trust with the commissioner a financial
security deposit, having a value of not less than five percent
of the gross consideration received, less claims paid, on the
sale of the service contract for all service contracts issued
and in force, but not less than $25,000, consisting of one of
the following:
new text end

new text begin (A) a surety bond issued by an authorized surety;
new text end

new text begin (B) securities of the type eligible for deposit by
authorized insurers in this state;
new text end

new text begin (C) cash;
new text end

new text begin (D) a letter of credit issued by a qualified financial
institution containing an evergreen clause which prevents the
expiration of the letter without due notice from the issuer; or
new text end

new text begin (E) another form of security prescribed by rules of the
commissioner; or
new text end

new text begin (3)(i) maintain, or its parent company maintain, a net
worth or stockholders' equity of $100,000,000; and
new text end

new text begin (ii) upon request, provide the commissioner with a copy of
the provider's or the provider's parent company's most recent
Form 10-K or Form 20-F filed with the Securities and Exchange
Commission (SEC) within the last calendar year, or if the
company does not file with the SEC, a copy of the company's
audited financial statements, which shows a net worth of the
provider or its parent company of at least $100,000,000. If the
provider's parent company's Form 10-K, Form 20-F, or audited
financial statements are filed to meet the provider's financial
stability requirement, then the parent company shall agree to
guarantee the obligations of the provider relating to service
contracts sold by the provider in this state.
new text end

new text begin Subd. 5. new text end

new text begin Right of return. new text end

new text begin Service contracts must require
the provider to permit the service contract holder to return the
service contract within 20 days of the date the service contract
was mailed to the service contract holder or within ten days of
delivery if the service contract is delivered to the service
contract holder at the time of sale or within a longer time
period permitted under the service contract. Upon return of the
service contract to the provider within the applicable time
period, if no claim has been made under the service contract
before its return to the provider, the service contract is void
and the provider shall refund to the service contract holder, or
credit the account of the service contract holder, with the full
purchase price of the service contract. The right to void the
service contract provided in this paragraph is not transferable
and applies only to the original service contract purchaser, and
only if no claim has been made before its return to the
provider. A ten percent penalty per month must be added to a
refund that is not paid or credited within 45 days after return
of the service contract to the provider.
new text end

new text begin Subd. 6. new text end

new text begin Premium taxes. new text end

new text begin (a) Provider fees collected on
service contracts are not subject to premium taxes.
new text end

new text begin (b) Premiums for reimbursement insurance policies are
subject to applicable taxes.
new text end

new text begin Subd. 7. new text end

new text begin Licensing exemption. new text end

new text begin Except for the
registration requirements in subdivision 3, providers and
related service contract sellers, administrators, and other
persons marketing, selling, or offering to sell service
contracts are exempt from any licensing requirements of this
state.
new text end

new text begin Subd. 8. new text end

new text begin Insurance exemption. new text end

new text begin The marketing, sale,
offering for sale, issuance, making, proposing to make, and
administration of service contracts by providers and related
service contract sellers, administrators, and other persons are
exempt from all other provisions of the insurance laws of this
state, except as provided in section 72A.20, subdivision 38.
new text end

Sec. 4.

new text begin [59B.04] REQUIRED DISCLOSURES; REIMBURSEMENT
INSURANCE POLICY.
new text end

new text begin Subdivision 1. new text end

new text begin Right to payment or
reimbursement. new text end

new text begin Reimbursement insurance policies insuring
service contracts issued, sold, or offered for sale in this
state shall state that the insurer that issued the reimbursement
insurance policy shall either reimburse or pay on behalf of the
provider any covered sums the provider is legally obligated to
pay or, in the event of the provider's nonperformance, shall
provide the service which the provider is legally obligated to
perform according to the provider's contractual obligations
under the service contracts issued or sold by the provider.
new text end

new text begin Subd. 2. new text end

new text begin Right to apply to company. new text end

new text begin In the event covered
service is not provided by the service contract provider within
60 days of proof of loss by the service contract holder, the
contract holder is entitled to apply directly to the
reimbursement insurance company.
new text end

Sec. 5.

new text begin [59B.05] REQUIRED DISCLOSURE; SERVICE CONTRACTS.
new text end

new text begin Subdivision 1. new text end

new text begin Readability and general
disclosure. new text end

new text begin Service contracts marketed, sold, offered for sale,
issued, made, proposed to be made, or administered in this state
must be written, printed, or typed in clear, understandable
language that is easy to read and must disclose the requirements
set forth in this section, as applicable.
new text end

new text begin Subd. 2. new text end

new text begin Identities of parties. new text end

new text begin Service contracts must
state the name and address of the provider, and must identify
any administrator if different from the provider, the service
contract seller, and the service contract holder to the extent
that the name of the service contract holder has been furnished
by the service contract holder. The identities of the parties
are not required to be preprinted on the service contract and
may be added to the service contract at the time of sale.
new text end

new text begin Subd. 3. new text end

new text begin Total purchase price and sales terms. new text end

new text begin Service
contracts must state the total purchase price and the terms
under which the service contract is sold. The purchase price is
not required to be preprinted on the service contract and may be
negotiated at the time of sale with the service contract holder.
new text end

new text begin Subd. 4. new text end

new text begin Deductibles. new text end

new text begin Service contracts must state the
existence of any deductible amount, if applicable.
new text end

new text begin Subd. 5. new text end

new text begin Coverages, limitations, and exclusions. new text end

new text begin No
particular causes of loss or property are required to be
covered, but service contracts must specify the merchandise and
services to be provided and, with equal prominence, any
limitations, exceptions, or exclusions including, but not
limited to, any damage or breakdown not covered by the service
contract.
new text end

new text begin Subd. 6. new text end

new text begin Restrictions on transferability. new text end

new text begin Service
contracts must state any restrictions governing the
transferability of the service contract, if applicable.
new text end

new text begin Subd. 7. new text end

new text begin Cancellation terms. new text end

new text begin Service contracts must
state the terms, restrictions, or conditions governing
cancellation of the service contract prior to the termination or
expiration date of the service contract by either the provider
or the service contract holder. The provider of the service
contract shall mail a written notice to the contract holder at
the last known address of the service contract holder contained
in the records of the provider at least 15 days before
cancellation by the provider. Five days' notice is required if
the reason for cancellation is nonpayment of the provider fee, a
material misrepresentation by the service contract holder to the
provider, or a substantial breach of duties by the service
contract holder relating to the covered product or its use. The
notice must state the effective date of the cancellation and the
reason for the cancellation.
new text end

new text begin Subd. 8. new text end

new text begin Duties of contract holder. new text end

new text begin Service contracts
must set forth all of the obligations and duties of the service
contract holder, such as the duty to protect against any further
damage and any requirement to follow the owner's manual.
new text end

new text begin Subd. 9. new text end

new text begin Exclusions; consequential damages and
preexisting conditions. new text end

new text begin Service contracts may exclude coverage
for consequential damages or preexisting conditions. These
exclusions, if applicable, must be stated in the contract.
new text end

Sec. 6.

new text begin [59B.06] ADDITIONAL REQUIRED DISCLOSURE; SERVICE
CONTRACTS.
new text end

new text begin Subdivision 1. new text end

new text begin Insurance disclosure. new text end

new text begin Service contracts
insured under a reimbursement insurance policy pursuant to
section 59B.03, subdivision 4, clause (1), must contain a
statement in substantially the following form: "Obligations of
the provider under this service contract are insured under a
service contract reimbursement insurance policy." The service
contract must also state the name and address of the insurer.
new text end

new text begin Subd. 2. new text end

new text begin Disclosure of no insurance. new text end

new text begin Service contracts
not insured under a reimbursement insurance policy pursuant to
section 59B.03, subdivision 4, clause (1), must contain a
statement in substantially the following form: "Obligations of
the provider under this service contract are backed by the full
faith and credit of the provider."
new text end

Sec. 7.

new text begin [59B.07] PROHIBITED ACTS.
new text end

new text begin Subdivision 1. new text end

new text begin Deceptive names. new text end

new text begin A provider shall not use
in its name the words insurance, casualty, surety, mutual, or
any other words descriptive of the insurance, casualty, or
surety business; or a name deceptively similar to the name or
description of any insurance or surety corporation, or to the
name of any other provider. The word "guaranty" or similar word
may be used by a provider. This section does not apply to a
company that was using any of the prohibited language in its
name before the effective date of this chapter. However, a
company using the prohibited language in its name shall include
in its service contracts a statement in substantially the
following form: "This agreement is not an insurance contract."
new text end

new text begin Subd. 2. new text end

new text begin False or misleading statements. new text end

new text begin A provider or
its representative shall not in its service contracts,
literature, or otherwise make, permit, or cause to be made any
false or misleading statement or omit any material statement
that would be considered misleading if omitted.
new text end

new text begin Subd. 3. new text end

new text begin Required purchase. new text end

new text begin A person, such as a bank,
savings association, lending institution, manufacturer, or
seller of any product shall not require the purchase of a
service contract as a condition of a loan or a condition for the
sale of any property.
new text end

Sec. 8.

new text begin [59B.08] RECORD-KEEPING REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin The provider shall keep
accurate accounts, books, and records concerning transactions
regulated under this chapter.
new text end

new text begin The provider's accounts, books, and records include the
following:
new text end

new text begin (1) copies of each type of service contracts sold;
new text end

new text begin (2) the name and address of each service contract holder to
the extent that the name and address have been furnished by the
service contract holder;
new text end

new text begin (3) a list of the locations where service contracts are
marketed, sold, or offered for sale; and
new text end

new text begin (4) written claims files which shall contain information
regarding the services provided or claims payments for contracts
that provide for payments or reimbursement, including at least
the dates and description of claims related to the service
contracts.
new text end

new text begin Subd. 2. new text end

new text begin Retention. new text end

new text begin (a) Except as provided in paragraph
(b), the provider shall retain all records required to be
maintained by this section for at least three years after the
specified period of coverage has expired.
new text end

new text begin (b) A provider discontinuing business in this state shall
maintain its records until it furnishes the commissioner
satisfactory proof that it has discharged all obligations to
contract holders in this state.
new text end

new text begin Subd. 3. new text end

new text begin Medium. new text end

new text begin The records required by this chapter
may be, but are not required to be, maintained on a computer
disk or other record-keeping technology. If the records are
maintained in other than hard copy, the records must be capable
of duplication to legible hard copy at the request of the
commissioner.
new text end

Sec. 9.

new text begin [59B.09] TERMINATION OF REIMBURSEMENT INSURANCE
POLICY.
new text end

new text begin An insurer that issued a reimbursement insurance policy may
not terminate the policy unless the insurer mails or delivers
written notice of the termination to the commissioner at least
30 days before the effective date of termination. The
termination of a reimbursement insurance policy does not reduce
the issuer's responsibility for service contracts issued by
providers before the date of the termination.
new text end

Sec. 10.

new text begin [59B.10] OBLIGATION OF REIMBURSEMENT INSURANCE
POLICY INSURERS.
new text end

new text begin Insurers issuing reimbursement insurance to providers are
deemed to have received the premiums for the insurance upon the
payment of provider fees by consumers for service contracts
issued by the insured providers.
new text end

new text begin Nothing in this chapter prevents or limits the right of an
insurer that issued a reimbursement insurance policy to seek
indemnification or subrogation against a provider if the issuer
pays or is obligated to pay the service contract holder sums
that the provider was obligated to pay pursuant to the
provisions of the service contract.
new text end

Sec. 11.

new text begin [59B.11] SEVERABILITY PROVISION.
new text end

new text begin If any provision of this chapter or the application of the
provision to any person or circumstances are held invalid, the
remainder of this chapter and the application of the provision
to person or circumstances other than those as to which it is
held invalid, must not be affected.
new text end

Sec. 12.

Minnesota Statutes 2004, section 72A.20, is
amended by adding a subdivision to read:

new text begin Subd. 38. new text end

new text begin Unfair claims service; service contracts. new text end

new text begin No
person shall, in connection with a service contract regulated
under chapter 59B:
new text end

new text begin (1) attempt to settle claims on the basis of an application
or any other material document which was altered without notice
to, or knowledge or consent of, the service contract holder;
new text end

new text begin (2) make a material misrepresentation to the service
contract holder for the purpose and with the intent of effecting
settlement of the claims, loss, or damage under the contract on
less favorable terms than those provided in, and contemplated
by, the contract; or
new text end

new text begin (3) commit or perform with such frequency as to indicate a
general business practice any of the following practices:
new text end

new text begin (i) failure to properly investigate claims;
new text end

new text begin (ii) misrepresentation of pertinent facts or contract
provisions relating to coverages at issue;
new text end

new text begin (iii) failure to acknowledge and act upon communications
within a reasonable time with respect to claims;
new text end

new text begin (iv) denial of claims without conducting reasonable
investigations based upon available information;
new text end

new text begin (v) failure to affirm or deny coverage of claims upon
written request of the service contract holder within a
reasonable time after proof-of-loss statements have been
completed; or
new text end

new text begin (vi) failure to timely provide a reasonable explanation to
the service contract holder of the basis in the contract in
relation to the facts or applicable law for denial of a claim or
for the offer of a compromise settlement.
new text end

Sec. 13. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 12 are effective January 1, 2006, and apply
to service contracts issued on or after that date. A provider
transacting business in this state on or before the date of the
enactment of this chapter, which submits an application for
registration as a provider under Minnesota Statutes, section
59B.03, subdivision 3, within 30 days after the commissioner
makes the application available, may continue to transact
business in this state until final agency action is taken by the
commissioner regarding the registration application and all
rights to administrative and judicial review related to that
final agency action have been exhausted or have expired.
new text end