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Minnesota Legislature

Office of the Revisor of Statutes

SF 786

as introduced - 88th Legislature (2013 - 2014) Posted on 03/13/2013 03:18pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to environment; allowing the creation of a joint powers board related to
silica sand mining in southeastern Minnesota; providing for silica sand extraction
taxing authority; allowing an extension or renewal of interim ordinances for new
permits for silica sand mining and facilities; requiring a generic environmental
impact statement report; modifying environmental review; providing criminal
penalties; appropriating money; amending Minnesota Statutes 2012, section
116D.04, subdivisions 2a, 2b; proposing coding for new law in Minnesota
Statutes, chapter 298; proposing coding for new law as Minnesota Statutes,
chapter 116Y.

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

Section 1.

Minnesota Statutes 2012, section 116D.04, subdivision 2a, is amended to
read:


Subd. 2a.

When prepared.

Where there is potential for significant environmental
effects resulting from any major governmental action, the action shall be preceded by a
detailed environmental impact statement prepared by the responsible governmental unit.
The environmental impact statement shall be an analytical rather than an encyclopedic
document which describes the proposed action in detail, analyzes its significant
environmental impacts, discusses appropriate alternatives to the proposed action and
their impacts, and explores methods by which adverse environmental impacts of an
action could be mitigated. The environmental impact statement shall also analyze those
economic, employment, and sociological effects that cannot be avoided should the action
be implemented. To ensure its use in the decision-making process, the environmental
impact statement shall be prepared as early as practical in the formulation of an action.

(a) The board shall by rule establish categories of actions for which environmental
impact statements and for which environmental assessment worksheets shall be prepared
as well as categories of actions for which no environmental review is required under this
section. A mandatory environmental assessment worksheet shall not be required for the
expansion of an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph
(b), or the conversion of an ethanol plant to a biobutanol facility or the expansion of a
biobutanol facility as defined in section 41A.105, subdivision 1a, based on the capacity
of the expanded or converted facility to produce alcohol fuel, but must be required if
the ethanol plant or biobutanol facility meets or exceeds thresholds of other categories
of actions for which environmental assessment worksheets must be prepared. The
responsible governmental unit for an ethanol plant or biobutanol facility project for which
an environmental assessment worksheet is prepared shall be the state agency with the
greatest responsibility for supervising or approving the project as a whole.

A mandatory environmental impact statement shall not be required for a facility
or plant located outside the seven-county metropolitan area that produces less than
125,000,000 gallons of ethanol, biobutanol, or cellulosic biofuel annually, if the facility
or plant is: an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph
(b); a biobutanol facility, as defined in section 41A.105, subdivision 1a, clause (1); or a
cellulosic biofuel facility, as defined in section 41A.10, subdivision 1, paragraph (d).

(b) The responsible governmental unit shall promptly publish notice of the
completion of an environmental assessment worksheet by publishing the notice in at least
one newspaper of general circulation in the geographic area where the project is proposed,
by posting the notice on a Web site that has been designated as the official publication site
for publication of proceedings, public notices, and summaries of a political subdivision in
which the project is proposed, or in any other manner determined by the board and shall
provide copies of the environmental assessment worksheet to the board and its member
agencies. Comments on the need for an environmental impact statement may be submitted
to the responsible governmental unit during a 30-day period following publication of the
notice that an environmental assessment worksheet has been completed. The responsible
governmental unit's decision on the need for an environmental impact statement shall be
based on the environmental assessment worksheet and the comments received during the
comment period, and shall be made within 15 days after the close of the comment period.
The board's chair may extend the 15-day period by not more than 15 additional days upon
the request of the responsible governmental unit.new text begin If, within 30 days after the end of the
comment period, the board determines that the decision on the need for an environmental
impact statement was made in error, the board may reject the decision of the responsible
governmental unit and require further deliberation by the responsible governmental unit.
Amended decisions of the responsible governmental unit are subject to the requirements
of this paragraph.
new text end

(c) An environmental assessment worksheet shall also be prepared for a proposed
action whenever material evidence accompanying a petition by not less than 100
individuals who reside or own property in the state, submitted before the proposed
project has received final approval by the appropriate governmental units, demonstrates
that, because of the nature or location of a proposed action, there may be potential for
significant environmental effects. Petitions requesting the preparation of an environmental
assessment worksheet shall be submitted to the board. The chair of the board shall
determine the appropriate responsible governmental unit and forward the petition to it.
A decision on the need for an environmental assessment worksheet shall be made by
the responsible governmental unit within 15 days after the petition is received by the
responsible governmental unit. The board's chair may extend the 15-day period by not
more than 15 additional days upon request of the responsible governmental unit.

(d) Except in an environmentally sensitive location where Minnesota Rules, part
4410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental
review under this chapter and rules of the board, if:

(1) the proposed action is:

(i) an animal feedlot facility with a capacity of less than 1,000 animal units; or

(ii) an expansion of an existing animal feedlot facility with a total cumulative
capacity of less than 1,000 animal units;

(2) the application for the animal feedlot facility includes a written commitment by
the proposer to design, construct, and operate the facility in full compliance with Pollution
Control Agency feedlot rules; and

(3) the county board holds a public meeting for citizen input at least ten business
days prior to the Pollution Control Agency or county issuing a feedlot permit for the
animal feedlot facility unless another public meeting for citizen input has been held with
regard to the feedlot facility to be permitted. The exemption in this paragraph is in
addition to other exemptions provided under other law and rules of the board.

(e) The board may, prior to final approval of a proposed project, require preparation
of an environmental assessment worksheet by a responsible governmental unit selected
by the board for any action where environmental review under this section has not been
specifically provided for by rule or otherwise initiated.

(f) An early and open process shall be utilized to limit the scope of the environmental
impact statement to a discussion of those impacts, which, because of the nature or location
of the project, have the potential for significant environmental effects. The same process
shall be utilized to determine the form, content and level of detail of the statement as well
as the alternatives which are appropriate for consideration in the statement. In addition,
the permits which will be required for the proposed action shall be identified during the
scoping process. Further, the process shall identify those permits for which information
will be developed concurrently with the environmental impact statement. The board
shall provide in its rules for the expeditious completion of the scoping process. The
determinations reached in the process shall be incorporated into the order requiring the
preparation of an environmental impact statement.

(g) The responsible governmental unit shall, to the extent practicable, avoid
duplication and ensure coordination between state and federal environmental review
and between environmental review and environmental permitting. Whenever practical,
information needed by a governmental unit for making final decisions on permits
or other actions required for a proposed project shall be developed in conjunction
with the preparation of an environmental impact statement. When an environmental
impact statement is prepared for a project requiring multiple permits for which two or
more agencies' decision processes include either mandatory or discretionary hearings
before a hearing officer prior to the agencies' decision on the permit, the agencies
may, notwithstanding any law or rule to the contrary, conduct the hearings in a single
consolidated hearing process if requested by the proposer. All agencies having jurisdiction
over a permit that is included in the consolidated hearing shall participate. The responsible
governmental unit shall establish appropriate procedures for the consolidated hearing
process, including procedures to ensure that the consolidated hearing process is consistent
with the applicable requirements for each permit regarding the rights and duties of parties to
the hearing, and shall utilize the earliest applicable hearing procedure to initiate the hearing.
The procedures of section 116C.28, subdivision 2, apply to the consolidated hearing.

(h) An environmental impact statement shall be prepared and its adequacy
determined within 280 days after notice of its preparation unless the time is extended by
consent of the parties or by the governor for good cause. The responsible governmental
unit shall determine the adequacy of an environmental impact statement, unless within 60
days after notice is published that an environmental impact statement will be prepared,
the board chooses to determine the adequacy of an environmental impact statement. If an
environmental impact statement is found to be inadequate, the responsible governmental
unit shall have 60 days to prepare an adequate environmental impact statement.

(i) The proposer of a specific action may include in the information submitted to the
responsible governmental unit a preliminary draft environmental impact statement under
this section on that action for review, modification, and determination of completeness and
adequacy by the responsible governmental unit. A preliminary draft environmental impact
statement prepared by the project proposer and submitted to the responsible governmental
unit shall identify or include as an appendix all studies and other sources of information
used to substantiate the analysis contained in the preliminary draft environmental impact
statement. The responsible governmental unit shall require additional studies, if needed,
and obtain from the project proposer all additional studies and information necessary for
the responsible governmental unit to perform its responsibility to review, modify, and
determine the completeness and adequacy of the environmental impact statement.

Sec. 2.

Minnesota Statutes 2012, section 116D.04, subdivision 2b, is amended to read:


Subd. 2b.

Project prerequisites.

If an environmental assessment worksheet or an
environmental impact statement is required for a governmental action under subdivision
2a, a project may not be started and a final governmental decision may not be made to
grant a permit, approve a project, or begin a project, until:

(1) a petition for an environmental assessment worksheet is dismissed;

(2) a negative declaration has been issued on the need for an environmental impact
statementnew text begin and the board has not rejected the decisionnew text end;

(3) the environmental impact statement has been determined adequate; or

(4) a variance has been granted from making an environmental impact statement by
the environmental quality board.

Sec. 3.

new text begin [116Y.01] APPLICABILITY.
new text end

new text begin This chapter applies to the counties of Blue Earth, Dakota, Dodge, Faribault,
Fillmore, Goodhue, Houston, LeSueur, Mower, Nicollet, Olmsted, Rice, Scott, Steele,
Wabasha, Waseca, Washington, and Winona.
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. 4.

new text begin [116Y.02] DEFINITIONS.
new text end

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

new text begin (a) "Board" means the Southeastern Minnesota Silica Sand Board.
new text end

new text begin (b) "Extraction site" means a pit, quarry, or deposit containing silica sand and
any contiguous property to the pit, quarry, or deposit that is used by the operator for
stockpiling the silica sand.
new text end

new text begin (c) "Importer" means any person who buys silica sand excavated from an area where
the tax under section 116Y.06 is not imposed, or another state and causes the silica sand
to be imported into a local unit of government in this state that imposes a tax on silica
sand under section 116Y.06.
new text end

new text begin (d) "Local unit of government" means a county, statutory or home rule charter city,
or town that is within the counties listed in section 116Y.01.
new text end

new text begin (e) "Operator" means any person engaged in the business of removing silica sand
from the surface or subsurface of the soil, for the purpose of sale, either directly or
indirectly, through the use of the sand in a marketable product or service.
new text end

new text begin (f) "Silica sand" means naturally existing high quartz level sand used, among
several industrial uses, as a proppant for the hydraulic fracturing of shale for oil and gas
production. Silica sand does not include common rock, stone, aggregate, gravel, and sand
with a low quartz level.
new text end

new text begin (g) "Silica sand mining" means the excavation and mining of silica sand by any
process, including digging, excavating, mining, drilling, blasting, tunneling, dredging,
stripping, or shafting.
new text end

new text begin (h) "Silica sand processing" means the washing, cleaning, screening, crushing,
filtering, sorting, processing, stockpiling, and storing of silica sand, either at the mining
site or at any other site.
new text end

new text begin (i) "Silica sand transporting" means the hauling and transporting of silica sand,
by any carrier: (1) from the mining site to a processing or transfer site; or (2) from a
processing or storage site to a rail, barge, or transfer site for transporting to destinations.
new text end

new text begin (j) "Transfer facility" means a facility for transporting silica sand by rail, barge, or
other means of transportation to destinations.
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. 5.

new text begin [116Y.03] SOUTHEASTERN MINNESOTA SILICA SAND BOARD.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Southeastern Minnesota Silica Sand Board may
be established by counties listed in section 116Y.01, pursuant to section 471.59, and
is established as a permanent board with authority to prepare, adopt, and implement a
comprehensive land use plan designed to protect and enhance southeastern Minnesota
from the negative effects of silica sand mining, transportation, and processing.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The governing body of each county shall appoint one of
its members to serve on the board.
new text end

new text begin (b) The terms of board members are two years from the date of appointment.
new text end

new text begin (c) Vacancies on the board shall be filled for the reminder of the term by the
governing body that made the original appointment.
new text end

new text begin (d) The governing body of a county may designate another member of the governing
body or a county officer to act as an alternate for the member appointed by that county.
new text end

new text begin Subd. 3. new text end

new text begin Officers. new text end

new text begin (a) The board shall annually appoint from among its members a
chair, vice-chair, and secretary-treasurer who shall serve for concurrent one-year terms.
new text end

new text begin (b) The chair shall preside over all meetings of the board and may call special
meetings at reasonable times and upon adequate notice when necessary.
new text end

new text begin (c) The vice-chair shall preside over the meetings of the board in the absence of
the chair.
new text end

new text begin (d) The secretary-treasurer or the designee of the secretary-treasurer shall keep a
record of all proceedings of the board. The secretary-treasurer shall provide for the proper
receipt and disbursement of funds.
new text end

new text begin Subd. 4. new text end

new text begin Meetings; open. new text end

new text begin (a) The regular meetings of the board shall be held at
times and places prescribed by the board.
new text end

new text begin (b) A majority of all members of the board shall constitute a quorum and a majority
vote of all members shall be required for actions taken by the board.
new text end

new text begin (c) Meetings of the board and advisory committees created by the board are subject
to chapter 13D.
new text end

new text begin Subd. 5. new text end

new text begin Staff and contracts. new text end

new text begin The board may employ staff and contract for goods
and services as necessary to implement this chapter. Contracts are subject to the statutory
procedures and restrictions applicable to local unit of government contracts.
new text end

new text begin Subd. 6. new text end

new text begin Funding. new text end

new text begin The board shall annually submit to each member county for the
county's approval an estimate of the funds the board will need from that county in the
next fiscal year to prepare and implement the plan under section 116Y.04 and otherwise
carry out the duties imposed upon it by this chapter. Each member county shall furnish
the necessary funds to the board. The board may apply for, receive, and disburse federal,
state, and other grants and donations.
new text end

new text begin Subd. 7. new text end

new text begin Advisory committee. new text end

new text begin The board shall appoint an advisory committee,
representing a broad geographical area and diverse public interests, including equal
representation from concerned citizens, local units of government, and the sand mining
industry.
new text end

new text begin Subd. 8. new text end

new text begin Contact with government agencies. new text end

new text begin The board shall initiate and maintain
contacts with governmental agencies as necessary to properly prepare the plan under
section 116Y.04 and may negotiate cooperative management agreements. The board
shall establish a scientific advisory team with appropriate state agency staff from the
Departments of Natural Resources, Health, and Transportation, and the Pollution Control
Agency. The team shall advise the board on developing and implementing the plan
developed in section 116Y.04.
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. 6.

new text begin [116Y.04] PLAN IMPLEMENTATION.
new text end

new text begin Subdivision 1. new text end

new text begin Development and implementation required. new text end

new text begin The plan shall be
developed and implemented by the board as provided in this section.
new text end

new text begin Subd. 2. new text end

new text begin Plan provides minimum standards. new text end

new text begin The standards set forth in the plan
are the minimum standards that may be adopted by the board and by the local units of
government for the protection and enhancement of the natural, scientific, historical,
recreational, and cultural resources from silica sand mining in southeastern Minnesota.
Silica sand mining, processing, and transport facilities permitted by a local unit of
government after the effective date of this section must be in conformance with the plan.
new text end

new text begin Subd. 3. new text end

new text begin Implementation. new text end

new text begin The board shall develop and establish a schedule for
implementation and common administration of the plan by the local units of government.
The schedule shall be binding upon the local units of government subject to approval by
the governing bodies of the respective local units of government.
new text end

new text begin Subd. 4. new text end

new text begin Local land use ordinance must be consistent with plan. new text end

new text begin The local units
of government shall adopt and amend existing land use ordinances to be consistent with
the plan. Local units of government may adopt ordinances that include the minimum
standards in the plan. Local units of government may enact ordinances that are stricter
than the minimum standards.
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.

new text begin [116Y.05] RESPONSIBILITIES OF OTHER GOVERNMENTAL UNITS.
new text end

new text begin Within jurisdictions subject to the plan, all local and special governmental units,
councils, commissions, boards, and districts and all state agencies and departments must
exercise their powers so as to further the purposes of this chapter and the plan. Land
owned by the state, its agencies, and political subdivisions shall be administered in
accordance with the plan.
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. 8.

new text begin [116Y.06] SILICA SAND REMOVAL; PRODUCTION TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin Only local units of government that have adopted
at least the minimum standards established in section 116Y.04 may impose the tax
authorized under this section. The tax imposed under this section is in lieu of the taxing
authority granted under section 298.75 for silica sand production. When a county imposes
a production tax under this section, other local units of government shall not apply a
production tax under this section for the same silica sand production.
new text end

new text begin Subd. 2. new text end

new text begin Tax imposed. new text end

new text begin (a) A local unit of government that imposes the silica sand
production tax shall impose upon every operator a production tax of ... cents per cubic
yard or ... cents per ton of silica sand excavated in the local unit of government, except
that the local unit of government board may decide not to impose this tax if it determines
that in the previous year operators removed less than 20,000 tons or 14,000 cubic yards
of silica sand from that local unit of government. The tax shall not be imposed on silica
sand excavated in the local unit of government until the silica sand is transported from the
extraction site or sold, whichever occurs first. When silica sand is stored in a stockpile
within the state and a public highway, road, or street is not used for transporting the
silica sand, the tax shall not be imposed until the silica sand is sold, transported from the
stockpile site, or used from the stockpile, whichever occurs first.
new text end

new text begin (b) A local unit of government that imposes the silica sand production tax under
paragraph (a) shall impose upon every importer a production tax of ... cents per cubic yard
or ... cents per ton of silica sand imported into the local unit of government. The tax
shall be imposed when the silica sand is imported from the extraction site or sold. When
imported silica sand is stored in a stockpile within the state and a public highway, road, or
street is not used for transporting the silica sand, the tax shall be imposed when the silica
sand is sold, transported from the stockpile site, or used from the stockpile, whichever
occurs first. The tax shall be imposed on an importer when the silica sand is imported into
the local unit of government that imposes the tax.
new text end

new text begin (c) If the silica sand is transported directly from the extraction site to a waterway,
railway, or another mode of transportation other than a highway, road, or street, the tax
imposed by this section shall be apportioned equally between the local unit of government
where the silica sand is extracted and the local unit of government to which the silica sand is
originally transported. If that destination is not located in Minnesota, then the local unit of
government where the silica sand was extracted shall receive all of the proceeds of the tax.
new text end

new text begin (d) A local unit of government that receives revenue under this section is prohibited
from imposing any additional host community fees on silica sand production within that
local unit of government.
new text end

new text begin Subd. 3. new text end

new text begin Report and remittance. new text end

new text begin (a) By the 14th day following the last day of each
calendar quarter, every operator or importer shall make and file with the local unit of
government in which the silica sand is removed or imported, a correct report under oath, in
the form and containing information as the local unit of government shall require, relative
to the quantity of silica sand removed or imported during the preceding calendar quarter.
The report shall be accompanied by a remittance of the amount of tax due.
new text end

new text begin (b) If any of the proceeds of the tax is to be apportioned as provided in subdivision
2, the operator or importer shall also include on the report any relevant information
concerning the amount of silica sand transported, the tax, and the local unit of government
of destination. The local unit of government shall notify the local unit of government
treasurer of the amount of such tax and the local unit of government to which it is due.
The local unit of government treasurer shall remit the tax to the appropriate local unit
of government within 30 days.
new text end

new text begin Subd. 4. new text end

new text begin Estimate; statement of objections. new text end

new text begin If the local unit of government has not
received the report by the 15th day after the last day of each calendar quarter from the
operator or importer as required by subdivision 3 or has received an erroneous report, the
local unit of government shall estimate the amount of tax due and notify the operator or
importer by registered mail of the amount of tax so estimated within the next 14 days. An
operator or importer may, within 30 days from the date of mailing the notice, and upon
payment of the amount of tax determined to be due, file in the office of the local unit of
government a written statement of objections to the amount of taxes determined to be due.
The statement of objections shall be deemed to be a petition within the meaning of chapter
278, and shall be governed by sections 278.02 to 278.13.
new text end

new text begin Subd. 5. new text end

new text begin Failure to file and pay; penalty. new text end

new text begin Failure to file the report and submit
payment shall result in a penalty of $5 for each of the first 30 days, beginning on the 15th
day after the last day of each calendar quarter, for which the report and payment are due
and no statement of objection has been filed as provided in subdivision 4, and a penalty
of $10 for each subsequent day shall be assessed against the operator or importer who is
required to file the report. The penalties imposed by this subdivision shall be collected as
part of the tax and credited to the local unit of government revenue fund. If neither the
report nor a statement of objection has been filed after more than 60 days have elapsed
from the date when the notice was sent, the operator or importer who is required to file the
report is guilty of a misdemeanor.
new text end

new text begin Subd. 6. new text end

new text begin Penalties; removal of aggregate if previous tax not paid; false report.
new text end

new text begin (a) It is a misdemeanor for any operator or importer to remove silica sand from a pit,
quarry, or deposit or for any importer to import silica sand, unless all taxes due under this
section for all previous reporting periods have been paid or objections thereto have been
filed pursuant to subdivision 4.
new text end

new text begin (b) It is a misdemeanor for the operator or importer who is required to file a report to
file a false report with intent to evade the tax.
new text end

new text begin Subd. 7. new text end

new text begin Proceeds of taxes. new text end

new text begin (a) All money collected as taxes under this section
on silica sand shall be deposited in the local unit of government treasury and credited
according to this subdivision.
new text end

new text begin (b) The local unit of government may retain an annual administrative fee of up to
five percent of the total taxes collected in any year.
new text end

new text begin (c) The balance of the taxes, after any deduction under paragraph (b), shall be
credited as follows:
new text end

new text begin (1) ... percent to the local unit of government road and bridge fund for expenditure
for the maintenance, construction, and reconstruction of county, city, and township roads,
highways, streets, and bridges;
new text end

new text begin (2) ... percent to the general fund of the local unit of government for environmental
protection and economic development purposes, including tourism; and
new text end

new text begin (3) ... percent to a special reserve fund that is hereby established, for expenditure
for the restoration of abandoned pits, quarries, or deposits located within the local unit of
government. If there are no abandoned pits, quarries, or deposits located within the local
unit of government, the portion of the tax allocated under this clause shall be used for any
other unmet reclamation need or for conservation or other environmental needs.
new text end

new text begin Subd. 8. new text end

new text begin Examination and maintenance of records. new text end

new text begin The local unit of government
or its duly authorized agent may examine records, including computer records, maintained
by an importer or operator. The term "record" includes, but is not limited to, all
accounts of an importer or operator. The local unit of government must have access at
all reasonable times to inspect and copy all business records related to an importer's or
operator's collection, transportation, and disposal of aggregate to the extent necessary to
ensure that all silica sand production taxes required to be paid have been remitted to the
local unit of government. The records must be maintained by the importer or operator
for no less than six years.
new text end

Sec. 9.

new text begin [298.76] STATE SILICA SAND PRODUCTION TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Tax imposed. new text end

new text begin (a) A silica sand production tax of ... cents per cubic
yard or ... cents per ton of silica sand, as defined in section 116Y.02, excavated in the
state is imposed upon every operator, as defined in section 116Y.02. The tax shall not be
imposed on silica sand excavated in the state until the silica sand is transported from the
extraction site or sold, whichever occurs first. When silica sand is stored in a stockpile
within the state and a public highway, road, or street is not used for transporting the
silica sand, the tax shall not be imposed until the silica sand is sold, transported from the
stockpile site, or used from the stockpile, whichever occurs first.
new text end

new text begin (b) A silica sand production tax of ... cents per cubic yard or ... cents per ton of silica
sand imported into the state is imposed upon every importer as defined under section
116Y.04. The tax shall be imposed when the silica sand is imported from the extraction
site or sold. When imported silica sand is stored in a stockpile within the state and a
public highway, road, or street is not used for transporting the silica sand, the tax shall be
imposed when the silica sand is sold, transported from the stockpile site, or used from the
stockpile, whichever occurs first. The tax shall be imposed on an importer when the silica
sand is imported into the local unit of government that imposes the tax.
new text end

new text begin Subd. 2. new text end

new text begin Report and remittance. new text end

new text begin By the 14th day following the last day of each
calendar quarter, every operator or importer shall make and file with the commissioner
of revenue a correct report under oath, in such form and containing such information as
the local unit of government shall require, relative to the quantity of silica sand removed
or imported during the preceding calendar quarter. The report shall be accompanied
by a remittance of the amount of tax due.
new text end

new text begin Subd. 3. new text end

new text begin Estimate; statement of objections. new text end

new text begin If the commissioner of revenue has
not received the report by the 15th day after the last day of each calendar quarter from the
operator or importer as required by subdivision 2 or has received an erroneous report, the
commissioner shall estimate the amount of tax due and notify the operator or importer by
registered mail of the amount of tax so estimated within the next 14 days. An operator or
importer may, within 30 days from the date of mailing the notice, and upon payment of the
amount of tax determined to be due, file in the office of the local unit of government a
written statement of objections to the amount of taxes determined to be due. The statement
of objections shall be deemed to be a petition within the meaning of chapter 278, and shall
be governed by sections 278.02 to 278.13.
new text end

new text begin Subd. 4. new text end

new text begin Failure to file and pay; penalty. new text end

new text begin Failure to file the report and submit
payment shall result in a penalty of $5 for each of the first 30 days, beginning on the 15th
day after the last day of each calendar quarter, for which the report and payment are due and
no statement of objection has been filed as provided in subdivision 3, and a penalty of $10
for each subsequent day shall be assessed against the operator or importer who is required
to file the report. The penalties imposed by this subdivision shall be collected as part of
the tax and credited to the general fund. If neither the report nor a statement of objection
has been filed after more than 60 days have elapsed from the date when the notice was
sent, the operator or importer who is required to file the report is guilty of a misdemeanor.
new text end

new text begin Subd. 5. new text end

new text begin Penalties; removal of aggregate if previous tax not paid; false report.
new text end

new text begin (a) It is a misdemeanor for any operator or importer to remove silica sand from a pit,
quarry, or deposit, or for any importer to import silica sand unless all taxes due under this
section for all previous reporting periods have been paid or objections thereto have been
filed pursuant to subdivision 3.
new text end

new text begin (b) It is a misdemeanor for the operator or importer who is required to file a report to
file a false report with intent to evade the tax.
new text end

new text begin Subd. 6. new text end

new text begin Proceeds of taxes. new text end

new text begin All money collected as taxes under this section shall
be deposited in the general fund.
new text end

new text begin Subd. 7. new text end

new text begin Examination and maintenance of records. new text end

new text begin The commissioner of revenue
may examine records, including computer records, maintained by an importer or operator.
The term "record" includes, but is not limited to, all accounts of an importer or operator.
The local unit of government must have access at all reasonable times to inspect and copy
all business records related to an importer's or operator's collection, transportation, and
disposal of aggregate to the extent necessary to ensure that all silica sand production taxes
required to be paid have been remitted to the local unit of government. The records must
be maintained by the importer or operator for no less than six years.
new text end

Sec. 10. new text beginGENERIC ENVIRONMENTAL IMPACT STATEMENT; SILICA
SAND MINING, TRANSPORTING, AND FACILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Generic environmental impact statement required. new text end

new text begin By May 1,
2014, the Environmental Quality Board shall complete a generic environmental impact
statement on silica sand mining, transporting, and related facilities. Except as provided
in subdivision 2, the generic environmental impact statement shall be conducted under
rules of the Environmental Quality Board.
new text end

new text begin Subd. 2. new text end

new text begin Scoping. new text end

new text begin (a) Notwithstanding the environmental review rules of the
Environmental Quality Board, the scope of the generic environmental impact statement
required in subdivision 1 shall be the impact of silica sand mining, transporting,
processing, and transfer facilities on:
new text end

new text begin (1) water resources, including but not limited to surface water and groundwater
quantity and quality;
new text end

new text begin (2) other natural resources, including but not limited to protected forest lands, rivers,
streams, and fish hatcheries and habitat;
new text end

new text begin (3) air quality from air particulate and other emissions;
new text end

new text begin (4) existing agricultural, recreational, tourist, and other existing businesses; and
new text end

new text begin (5) state and local roads and bridges.
new text end

new text begin (b) In addition to the items listed under paragraph (a), the generic environmental
impact statement shall address:
new text end

new text begin (1) guidance for local units of government in addressing phased and connected
actions, as defined in rules of the Environmental Quality Board, for silica sand mining,
processing, and transfer facilities; and
new text end

new text begin (2) necessary law and rule changes to address the issues identified in paragraph (a).
new text end

new text begin By March 1, 2015, state agencies shall adopt the rule changes identified in clause (2).
new text end

new text begin (c) By July 1, 2013, the Environmental Quality Board shall select the agencies and
consultants for the preparation of the generic environmental impact statement.
new text end

new text begin Subd. 3. new text end

new text begin State and local permits. new text end

new text begin All state and local permits issued after the
effective date of this section shall be modified to be consistent with the conclusions of the
generic environmental impact statement.
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. 11. new text beginINTERIM ORDINANCE EXTENSION OR RENEWAL.
new text end

new text begin Notwithstanding Minnesota Statutes, sections 394.34 and 462.355, subdivision 4,
until March 1, 2015, a local unit of government may extend interim ordinances or renew
an expired ordinance prohibiting new or expanded silica sand mining, processing, or
transfer facilities, as defined in Minnesota Statutes, section 116Y.02.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively to March 1, 2013.
new text end

Sec. 12. new text beginAPPROPRIATION; REPORT ON SILICA SAND MINING,
TRANSPORTING, AND FACILITIES.
new text end

new text begin $....... is appropriated in fiscal year 2013 from the general fund to the Pollution
Control Agency for the Environmental Quality Board to conduct the generic environmental
impact statement required under section 10. This is a onetime appropriation.
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