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HF 4099

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 05/01/2018 10:19am

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Current Version - 1st Engrossment

A bill for an act
relating to state government; making policy and technical changes to various
agriculture-related provisions including provisions related to agriculture finance;
establishing a rural energy feasibility loan program; requiring approval of certain
proposed rules; authorizing the sale of certain bonds; modifying environmental,
natural resource, and game and fish provisions; modifying Water Law; modifying
Clean Water Legacy Act; modifying solid waste provisions; modifying certain
penalties; modifying requirements for fencing abandoned mines; creating accounts;
providing for disposition of certain receipts; requiring rulemaking; making changes
to energy provisions; authorizing carbon reduction facilities; modifying the
renewable development account; establishing grant programs; regulating modular
and manufactured homes; requiring legislative review of certain rules; modifying
housing bond allocation; modifying the minimum wage for employees receiving
gratuities; making OSHA federal conformity changes; authorizing management
of Lake Winona; modifying the taconite economic development fund; increasing
certain local government borrowing limits; approving transfers of money from
certain accounts; requiring enhanced cybersecurity; establishing principles for
districting; establishing the Legislative Budget Office Oversight Commission;
establishing provisions for the Legislative Budget Office; modifying provisions
for the operations of state government; modifying provisions for the state auditor,
governor's office, Office of Administrative Hearings, Metropolitan Council, and
attorney general; establishing emergency operations and continuity of government
plans; establishing an office to receive and investigate harassment, misconduct,
and discrimination claims; establishing Fort Snelling National Landmark
Redevelopment bonding authority; transferring certain duties of Minnesota
Management and Budget to the Legislative Budget Office; transferring duties for
data practices and open meeting law from the Department of Administration to
the Office of Administrative Hearings; requiring a report on valuation method of
pipeline operating property; establishing certain pension amounts for volunteer
firefighters relief association; approving submission of a bid to host a Nordic World
Cup Ski Championship; approving construction of additional veterans homes;
changing administrative rulemaking provisions; changing campaign finance
provisions; modifying provisions for Minnesota Sports Facilities Authority;
requiring reports; making technical changes; appropriating money for certain
agencies and reducing appropriations for certain agencies;amending Minnesota
Statutes 2016, sections 1.26, subdivisions 1, 2; 3.303, by adding a subdivision;
3.8841, subdivision 9; 8.065; 10A.01, subdivision 35; 10A.02, subdivisions 7, 13;
10A.31, subdivisions 1, 3, 4, 5, 7, 10, 10b; 10A.315; 10A.321, subdivision 1;
12.09, subdivision 2; 12.21, subdivision 3; 13.02, by adding subdivisions; 13.072;
13.08, subdivision 4; 13.085, subdivisions 2, 3, 4, 5, 6, by adding a subdivision;
13.55, subdivisions 1, 2; 13.64, by adding a subdivision; 13.685; 13D.06,
subdivision 4; 14.03, subdivision 3; 14.127, subdivision 4; 14.381, by adding a
subdivision; 16A.013, by adding a subdivision; 16A.11, subdivision 1, by adding
a subdivision; 16A.965, by adding a subdivision; 16D.09; 16E.016; 16E.03,
subdivisions 4, 7, by adding a subdivision; 18C.425, subdivision 6; 18C.80,
subdivision 2; 28A.16; 41A.15, subdivision 10, by adding a subdivision; 41A.16,
subdivisions 1, 2; 41A.17, subdivision 1; 41A.18, subdivision 1; 41B.056,
subdivision 2; 41B.06; 84.0895, subdivision 2; 84.775, subdivision 1; 84.83,
subdivision 3; 84.86, subdivision 1; 84.928, subdivision 2; 86B.005, subdivision
8a; 86B.532, subdivision 1; 88.10, by adding a subdivision; 88.75, subdivision 1;
89.551; 97A.051, subdivision 2; 97A.433, subdivisions 4, 5; 97A.56, subdivision
2; 97B.015, subdivision 6; 97B.081, subdivision 3; 97B.1055; 97C.345, subdivision
3a; 103B.3369, subdivisions 5, 9, by adding a subdivision; 103B.801, subdivisions
2, 5; 103E.021, subdivision 6; 103E.071; 103G.2242, subdivision 14; 103G.287,
by adding a subdivision; 103H.275, subdivision 1; 114D.15, subdivisions 7, 11,
13, by adding subdivisions; 114D.20, subdivisions 2, 3, 5, 7, by adding
subdivisions; 114D.26; 114D.35, subdivisions 1, 3; 115.03, subdivisions 1, 5;
115.035; 115.77, subdivision 1; 115.84, subdivisions 2, 3; 115A.51; 115A.94,
subdivisions 2, 4a, 4b, 4c, 4d, 5, by adding subdivisions; 116.07, by adding a
subdivision; 116.155, subdivision 1, by adding subdivisions; 116.993, subdivisions
2, 6; 116J.394; 116J.395, subdivisions 2, 5, 7; 155A.23, subdivision 8; 155A.25,
subdivision 1a; 155A.28, by adding a subdivision; 155A.29, subdivisions 1, 6;
177.24, subdivision 1; 180.03, subdivisions 2, 3, 4; 180.10; 182.666, subdivisions
1, 2, 3, 4, 5, by adding a subdivision; 216A.03, by adding a subdivision; 216B.16,
by adding a subdivision; 216E.03, subdivision 9; 216E.04, subdivision 7; 240.01,
by adding a subdivision; 240.02, subdivision 6; 240.08, subdivision 5; 240.131,
subdivision 7; 240.22; 270C.13, subdivision 1; 290.06, subdivision 23; 297A.994,
subdivision 4; 297E.021, subdivisions 3, 4; 298.28, subdivision 9a; 299D.085, by
adding a subdivision; 326B.805, subdivision 3; 326B.815, subdivision 1; 327.31,
by adding a subdivision; 327B.041; 327C.095, subdivisions 4, 6, 12, 13, by adding
a subdivision; 340A.404, subdivision 1; 340A.412, by adding a subdivision;
349A.06, subdivision 11; 352.01, subdivision 2a; 424B.20, subdivision 4; 444.075,
subdivision 1a; 462A.222, subdivision 3; 465.73; 473.121, subdivision 5a; 473.123,
subdivisions 1, 2a, 3a, 4, by adding subdivisions; 473.146, subdivisions 3, 4;
473.164; 473.565, subdivision 1; 473.755, subdivision 4; 473.763, subdivision 2;
473.8441, subdivision 4; 473J.03, by adding a subdivision; 473J.07, subdivisions
2, 3, 4, 7, 8, 9, by adding subdivisions; 473J.09, subdivision 13, by adding
subdivisions; 473J.13, subdivisions 2, 3; 473J.25, subdivision 3; 473J.27,
subdivision 2; 474A.02, by adding subdivisions; 474A.03, subdivision 1; 474A.04,
subdivision 1a; 474A.047, subdivisions 1, 2; 474A.061; 474A.062; 474A.091;
474A.131; 474A.14; 480.15, by adding a subdivision; Minnesota Statutes 2017
Supplement, sections 3.8853, subdivisions 1, 2, by adding subdivisions; 3.98,
subdivision 1; 6.481, subdivision 3; 15A.0815, subdivision 3; 16A.152, subdivision
2; 18C.70, subdivision 5; 18C.71, subdivision 4; 84.01, subdivision 6; 84.91,
subdivision 1; 84.925, subdivision 1; 84.9256, subdivision 1; 84D.03, subdivisions
3, 4; 84D.108, subdivisions 2b, 2c; 85.0146, subdivision 1; 97A.075, subdivision
1; 103G.271, subdivision 7; 116.07, subdivision 4d; 116.0714; 116C.779,
subdivision 1; 116C.7792; 169A.07; 216B.164, subdivision 5; 216B.1691,
subdivision 2f; 298.227; 477A.03, subdivision 2b; Laws 2010, chapter 361, article
4, section 78; Laws 2014, chapter 312, article 2, section 14, as amended; Laws
2015, First Special Session chapter 4, article 4, section 136, as amended; Laws
2016, chapter 189, article 3, sections 3, subdivision 5; 4; 48; Laws 2017, chapter
2, article 1, section 7, as amended; Laws 2017, chapter 88, article 1, section 2,
subdivisions 1, 2, 4, 5; Laws 2017, chapter 93, article 1, sections 3, subdivision
6; 4; article 2, sections 155, subdivision 5; 163; Laws 2017, chapter 94, article 1,
sections 2, subdivisions 2, as amended, 3; 4, subdivisions 3, 5; article 10, sections
28; 29; Laws 2017, First Special Session chapter 4, article 2, sections 1; 3; 58;
proposing coding for new law in Minnesota Statutes, chapters 2; 4; 5; 12; 13; 14;
41B; 43A; 84; 97A; 103G; 115; 115B; 116; 116C; 216B; 216C; 327; 383A; 473J;
474A; repealing Minnesota Statutes 2016, sections 3.93; 3.94; 3.95; 3.96; 8.10;
10A.30, subdivision 2; 10A.31, subdivisions 3a, 5a, 6, 6a; 13.02, subdivision 2;
14.381, subdivision 3; 137.50, subdivision 5; 155A.28, subdivisions 1, 3, 4; 177.24,
subdivision 2; 216B.2423; 471.9996, subdivision 2; 473.123, subdivision 3;
473.551; 473.552; 473.553, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13;
473.556, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17; 473.561;
473.564, subdivisions 2, 3; 473.572; 473.581; 473.592, subdivision 1; 473.595;
473.598; 473.599; 473.76; 473J.09, subdivision 14; Minnesota Statutes 2017
Supplement, section 3.98, subdivision 4; Laws 1994, chapter 628, article 1, section
8; Laws 2017, First Special Session chapter 4, article 2, section 59.

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

ARTICLE 1

AGRICULTURE APPROPRIATIONS

Section 1.

Laws 2017, chapter 88, article 1, section 2, subdivision 1, is amended to read:


Subdivision 1.

Total Appropriation

$
53,096,000
$
53,148,000
53,395,000
Appropriations by Fund
2018
2019
General
52,703,000
52,751,000
52,998,000
Remediation
393,000
397,000

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

Sec. 2.

Laws 2017, chapter 88, article 1, section 2, subdivision 2, is amended to read:


Subd. 2.

Protection Services

17,821,000
17,825,000
Appropriations by Fund
2018
2019
General
17,428,000
17,428,000
Remediation
393,000
397,000

(a) $25,000 the first year and $25,000 the
second year are to develop and maintain
cottage food license exemption outreach and
training materials.

(b) $75,000 the first year and $75,000 the
second year are to coordinate the correctional
facility vocational training program and to
assist entities that have explored the feasibility
of establishing a USDA-certified or state
"equal to" food processing facility within 30
miles of the Northeast Regional Corrections
Center.

(c) $125,000 the first year and $125,000 the
second year are for additional funding for the
noxious weed and invasive plant program.
These are onetime appropriations.

(d) $250,000 the first year and $250,000 the
second year are for transfer to the pollinator
habitat and research account in the agricultural
fund. These are onetime transfers.

(e) $393,000 the first year and $397,000 the
second year are from the remediation fund for
administrative funding for the voluntary
cleanup program.

(f) $200,000 the first year and $200,000 the
second year are for the industrial hemp pilot
program under Minnesota Statutes, section
18K.09. These are onetime appropriations.

(g) $175,000 the first year and $175,000 the
second year are for compensation for
destroyed or crippled livestock under
Minnesota Statutes, section 3.737. This
appropriation may be spent to compensate for
livestock that were destroyed or crippled
during fiscal year 2017. If the amount in the
first year is insufficient, the amount in the
second year is available in the first year. The
commissioner may use up to $5,000 of this
appropriation each year to reimburse expenses
incurred by university extension educators to
provide fair market values of destroyed or
crippled livestock.

(h) $155,000 the first year and $155,000 the
second year are for compensation for crop
damage under Minnesota Statutes, section
3.7371. If the amount in the first year is
insufficient, the amount in the second year is
available in the first year. The commissioner
may use up to $30,000 of the appropriation
each year to reimburse expenses incurred by
the commissioner or the commissioner's
approved agent to investigate and resolve
claims.

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

(i) $250,000 the first year and $250,000 the
second year are to expand current capabilities
for rapid detection, identification, containment,
control, and management of high priority plant
pests and pathogens. These are onetime
appropriations.

(j) $300,000 the first year and $300,000 the
second year are for transfer to the noxious
weed and invasive plant species assistance
account in the agricultural fund to award
grants to local units of government under
Minnesota Statutes, section 18.90, with
preference given to local units of government
responding to Palmer amaranth or other weeds
on the eradicate list. These are onetime
transfers.

(k) $120,000 the first year and $120,000 the
second year are for wolf-livestock conflict
prevention grants under article 2, section 89.
The commissioner must submit a report to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture policy and finance by January 15,
2020, on the outcomes of the wolf-livestock
conflict prevention grants and whether
livestock compensation claims were reduced
in the areas that grants were awarded. These
are onetime appropriations.

Sec. 3.

Laws 2017, chapter 88, article 1, section 2, subdivision 4, is amended to read:


Subd. 4.

Agriculture, Bioenergy, and Bioproduct
Advancement

22,581,000
22,636,000

(a) $9,300,000 the first year and $9,300,000
the second year are for transfer to the
agriculture research, education, extension, and
technology transfer account under Minnesota
Statutes, section 41A.14, subdivision 3. Of
these amounts: at least $600,000 the first year
and $600,000 the second year are for the
Minnesota Agricultural Experiment Station's
agriculture rapid response fund under
Minnesota Statutes, section 41A.14,
subdivision 1
, clause (2); $2,000,000 the first
year and $2,000,000 the second year are for
grants to the Minnesota Agriculture Education
Leadership Council to enhance agricultural
education with priority given to Farm Business
Management challenge grants; $350,000 the
first year and $350,000 the second year are
for potato breeding; and $450,000 the first
year and $450,000 the second year are for the
cultivated wild rice breeding project at the
North Central Research and Outreach Center
to include a tenure track/research associate
plant breeder. The commissioner shall transfer
the remaining funds in this appropriation each
year to the Board of Regents of the University
of Minnesota for purposes of Minnesota
Statutes, section 41A.14. Of the amount
transferred to the Board of Regents, up to
$1,000,000 each year is for research on avian
influenza, including prevention measures that
can be taken.

To the extent practicable, funds expended
under Minnesota Statutes, section 41A.14,
subdivision 1
, clauses (1) and (2), must
supplement and not supplant existing sources
and levels of funding. The commissioner may
use up to one percent of this appropriation for
costs incurred to administer the program.

(b) $13,256,000 the first year and $13,311,000
the second year are for the agricultural growth,
research, and innovation program in
Minnesota Statutes, section 41A.12. Except
as provided below, the commissioner may
allocate the appropriation each year among
the following areas: facilitating the start-up,
modernization, or expansion of livestock
operations including beginning and
transitioning livestock operations; developing
new markets for Minnesota farmers by
providing more fruits, vegetables, meat, grain,
and dairy for Minnesota school children;
assisting value-added agricultural businesses
to begin or expand, access new markets, or
diversify; providing funding not to exceed
$250,000 each year for urban youth
agricultural education or urban agriculture
community development; providing funding
not to exceed $250,000 each year for the good
food access program under Minnesota
Statutes, section 17.1017; facilitating the
start-up, modernization, or expansion of other
beginning and transitioning farms including
by providing loans under Minnesota Statutes,
section 41B.056; sustainable agriculture
on-farm research and demonstration;
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research;
Farm Business Management tuition assistance;
good agricultural practices/good handling
practices certification assistance; establishing
and supporting farmer-led water management
councils; and implementing farmer-led water
quality improvement practices. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.

Of the amount appropriated for the agricultural
growth, research, and innovation program in
Minnesota Statutes, section 41A.12:

(1) $1,000,000 the first year and $1,000,000
the second year are for distribution in equal
amounts to each of the state's county fairs to
preserve and promote Minnesota agriculture;
and

(2) $1,500,000 the first year and $1,500,000
the second year are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, and 41A.18. Notwithstanding
Minnesota Statutes, section 16A.28, the first
year appropriation is available until June 30,
2019, and the second year appropriation is
available until June 30, 2020. If this
appropriation exceeds the total amount for
which all producers are eligible in a fiscal
year, the balance of the appropriation is
available for the agricultural growth, research,
and innovation program.; however, the
commissioner must first issue incentive
payments under Minnesota Statutes, section
41A.17, to facilities that otherwise satisfy the
criteria and requirements in that section but
began producing renewable chemical from
forestry biomass between January 1, 2013,
and January 1, 2015.

The commissioner may use funds appropriated
under this subdivision to award up to two
value-added agriculture grants per year of up
to $1,000,000 per grant for new or expanding
agricultural production or processing facilities
that provide significant economic impact to
the region. The commissioner may use funds
appropriated under this subdivision for
additional value-added agriculture grants for
awards between $1,000 and $200,000 per
grant.

Appropriations in clauses (1) and (2) are
onetime. Any unencumbered balance does not
cancel at the end of the first year and is
available for the second year. Notwithstanding
Minnesota Statutes, section 16A.28,
appropriations encumbered under contract on
or before June 30, 2019, for agricultural
growth, research, and innovation grants are
available until June 30, 2021 2022.

The base budget for the agricultural growth,
research, and innovation program is
$14,275,000 for fiscal years 2020 and 2021
and includes funding for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, 41A.18, and 41A.20.

The commissioner must develop additional
innovative production incentive programs to
be funded by the agricultural growth, research,
and innovation program.

The commissioner must consult with the
commissioner of transportation, the
commissioner of administration, and local
units of government to identify parcels of
publicly owned land that are suitable for urban
agriculture.

(c) $25,000 the first year and $25,000 the
second year are for grants to the Southern
Minnesota Initiative Foundation to promote
local foods through an annual event that raises
public awareness of local foods and connects
local food producers and processors with
potential buyers.

Sec. 4.

Laws 2017, chapter 88, article 1, section 2, subdivision 5, is amended to read:


Subd. 5.

Administration and Financial Assistance

8,698,000
8,691,000
8,938,000

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

(b) $1,000 the first year and $1,000 the second
year are for grants to the Minnesota State
Poultry Association.

(c) $18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Livestock Breeders Association.

(d) $47,000 the first year and $47,000 the
second year are for the Northern Crops
Institute. These appropriations may be spent
to purchase equipment.

(e) $220,000 the first year and $220,000
$250,000
the second year are for farm
advocate services.

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

(g) $108,000 the first year and $108,000 the
second year are for annual grants to the
Minnesota Turf Seed Council for basic and
applied research on: (1) the improved
production of forage and turf seed related to
new and improved varieties; and (2) native
plants, including plant breeding, nutrient
management, pest management, disease
management, yield, and viability. The grant
recipient may subcontract with a qualified
third party for some or all of the basic or
applied research. Any unencumbered balance
does not cancel at the end of the first year and
is available for the second year. These are
onetime appropriations.

(h) $113,000 the first year and $113,000
$330,000
the second year are for transfer to
the Board of Trustees of the Minnesota State
Colleges and Universities for statewide mental
health counseling support to farm families and
business operators through the Minnesota State
Agricultural Centers of Excellence
. South
Central College and Central Lakes College
shall serve as the fiscal agent agents.

(i) $550,000 the first year and $550,000 the
second year are for grants to Second Harvest
Heartland on behalf of Minnesota's six
Feeding America 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 Feeding America 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. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.

(j) $1,100,000 the first year and $1,100,000
the second year are for grants to Second
Harvest Heartland on behalf of the six Feeding
America food banks that serve Minnesota to
compensate agricultural producers and
processors for costs incurred to harvest and
package for transfer surplus fruits, vegetables,
and other agricultural commodities that would
otherwise go unharvested, be discarded, or
sold in a secondary market. Surplus
commodities must be distributed statewide to
food shelves and other charitable organizations
that are eligible to receive food from the food
banks. Surplus food acquired under this
appropriation must be from Minnesota
producers and processors. Second Harvest
Heartland must report in the form prescribed
by the commissioner. Second Harvest
Heartland may use up to 15 percent of each
grant for matching administrative and
transportation expenses. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.

(k) $150,000 the first year and $150,000 the
second year are for grants to the Center for
Rural Policy and Development.

(l) $235,000 the first year and $235,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.

(m) $600,000 the first year and $600,000 the
second year are for grants to the Board of
Regents of the University of Minnesota to
develop, in consultation with the
commissioner of agriculture and the Board of
Animal Health, a software tool or application
through the Veterinary Diagnostic Laboratory
that empowers veterinarians and producers to
understand the movement of unique pathogen
strains in livestock and poultry production
systems, monitor antibiotic resistance, and
implement effective biosecurity measures that
promote animal health and limit production
losses. These are onetime appropriations.

(n) $150,000 the first year is for the tractor
rollover protection pilot program under
Minnesota Statutes, section 17.119. This is a
onetime appropriation and is available until
June 30, 2019.

(o) $400,000 the first year is for a grant to the
Board of Trustees of the Minnesota State
Colleges and Universities to expand and
renovate the GROW-IT Center at Metropolitan
State University. This is a onetime
appropriation.

By January 15, 2018, the commissioner shall
submit a report to the chairs and ranking
minority members of the legislative
committees with jurisdiction over agricultural
policy and finance with a list of inspections
the department conducts at more frequent
intervals than federal law requires, an
explanation of why the additional inspections
are necessary, and provide recommendations
for eliminating any unnecessary inspections.

Sec. 5. RURAL FINANCE AUTHORITY.

Subdivision 1.

Appropriation.

$35,000,000 is appropriated from the bond proceeds
fund to the Rural Finance Authority for the purposes set forth in the Minnesota Constitution,
article XI, section 5, paragraph (h), to purchase participation interests in or to make direct
agricultural loans to farmers under Minnesota Statutes, chapter 41B. This appropriation is
from the bond proceeds account in the rural finance administration fund and is for the
beginning farmer program under Minnesota Statutes, section 41B.039; the loan restructuring
program under Minnesota Statutes, section 41B.04; the seller-sponsored program under
Minnesota Statutes, section 41B.042; the agricultural improvement loan program under
Minnesota Statutes, section 41B.043; and the livestock expansion loan program under
Minnesota Statutes, section 41B.045. All debt service on bond proceeds used to finance
this appropriation must be repaid by the Rural Finance Authority under Minnesota Statutes,
section 16A.643. Loan participations must be priced to provide full interest and principal
coverage and a reserve for potential losses. Priority for loans must be given first to basic
beginning farmer loans, second to seller-sponsored loans, and third to agricultural
improvement loans.

Subd. 2.

Bond sale expenses.

$35,000 is appropriated from the bond proceeds fund to
the commissioner of management and budget for bond sale expenses under Minnesota
Statutes, section 16A.641, subdivision 8.

Subd. 3.

Bond sale.

To provide the money appropriated in this section from the bond
proceeds fund, the commissioner of management and budget shall sell and issue bonds of
the state in an amount up to $35,035,000 in the manner, upon the terms, and with the effect
prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
Constitution, article XI, sections 4 to 7.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 2

AGRICULTURE STATUTORY CHANGES

Section 1.

Minnesota Statutes 2016, section 18C.425, subdivision 6, is amended to read:


Subd. 6.

Payment of inspection fee.

(a) The person who registers and distributes in the
state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411 shall
pay the inspection fee to the commissioner.

(b) The person licensed under section 18C.415 who distributes a fertilizer to a person
not required to be so licensed shall pay the inspection fee to the commissioner, except as
exempted under section 18C.421, subdivision 1, paragraph (b).

(c) 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
39 cents per ton, and until June 30, 2019 2029, an additional 40 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. Notwithstanding section 18C.131, the commissioner must deposit
all revenue from the additional 40 cents per ton fee in the agricultural fertilizer research and
education account in section 18C.80. 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.

(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant
amendment, or soil amendment distribution amounts and inspection fees paid for a period
of three years.

Sec. 2.

Minnesota Statutes 2017 Supplement, section 18C.70, subdivision 5, is amended
to read:


Subd. 5.

Expiration.

This section expires June 30, 2020 2030.

Sec. 3.

Minnesota Statutes 2017 Supplement, section 18C.71, subdivision 4, is amended
to read:


Subd. 4.

Expiration.

This section expires June 30, 2020 2030.

Sec. 4.

Minnesota Statutes 2016, section 18C.80, subdivision 2, is amended to read:


Subd. 2.

Expiration.

This section expires June 30, 2020 2030.

Sec. 5.

Minnesota Statutes 2016, section 28A.16, is amended to read:


28A.16 PERSONS SELLING LIQUOR.

(a) The provisions of the Minnesota consolidated food licensing law, sections 28A.01
to 28A.16 and acts amendatory thereto, shall not apply to persons licensed to sell 3.2 percent
malt liquor "on-sale" as provided in section 340A.403, or to persons licensed to sell
intoxicating liquors "on-sale" or "off-sale" as provided in sections 340A.404 to 340A.407,
provided that these persons sell only ice manufactured and packaged by another, or bottled
or canned soft drinks and prepacked candy at retail.

(b) When an exclusive liquor store is not exempt under paragraph (a), the commissioner
must exclude all gross sales of off-sale alcoholic beverages when determining the applicable
license fee under section 28A.08, subdivision 3. For purposes of this paragraph, "exclusive
liquor store" and "alcoholic beverage" have the meanings given in section 340A.101.

Sec. 6.

Minnesota Statutes 2016, section 41A.15, is amended by adding a subdivision to
read:


Subd. 2e.

Biomass.

"Biomass" means any organic matter that is available on a renewable
or recurring basis, including agricultural crops and trees, wood and wood waste and residues,
plants including aquatic plants, grasses, residues, fibers, animal waste, and the organic
portion of solid wastes.

Sec. 7.

Minnesota Statutes 2016, section 41A.15, subdivision 10, is amended to read:


Subd. 10.

Renewable chemical.

"Renewable chemical" means a chemical with biobased
content.
, polymer, monomer, plastic, or composite material that is entirely produced from
biomass.

Sec. 8.

Minnesota Statutes 2016, section 41A.16, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source from Minnesota at least 80 percent raw materials from Minnesota. of the biomass
used to produce an advanced biofuel, except that,
if a facility is sited 50 miles or less from
the state border, raw materials biomass used to produce an advanced biofuel may be sourced
from outside of Minnesota, but only if at least 80 percent of the biomass is sourced from
within a 100-mile radius of the facility or from within Minnesota. Raw materials must be
from agricultural or forestry sources or from solid waste.
The facility must be located in
Minnesota, must begin production at a specific location by June 30, 2025, and must not
begin operating above 23,750 MMbtu of quarterly advanced biofuel production before July
1, 2015. Eligible facilities include existing companies and facilities that are adding advanced
biofuel production capacity, or retrofitting existing capacity, as well as new companies and
facilities. Production of conventional corn ethanol and conventional biodiesel is not eligible.
Eligible advanced biofuel facilities must produce at least 23,750 1,500 MMbtu of advanced
biofuel quarterly.

(b) No payments shall be made for advanced biofuel production that occurs after June
30, 2035, for those eligible biofuel producers under paragraph (a).

(c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility
for payments under this section to an advanced biofuel facility at a different location.

(d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.

(e) Renewable chemical production for which payment has been received under section
41A.17, and biomass thermal production for which payment has been received under section
41A.18, are not eligible for payment under this section.

(f) Biobutanol is eligible under this section.

Sec. 9.

Minnesota Statutes 2016, section 41A.16, subdivision 2, is amended to read:


Subd. 2.

Payment amounts; limits.

(a) The commissioner shall make payments to
eligible producers of advanced biofuel. The amount of the payment for each eligible
producer's annual production is $2.1053 per MMbtu for advanced biofuel production from
cellulosic biomass, and $1.053 per MMbtu for advanced biofuel production from sugar or,
starch, oil, or animal fat at a specific location for ten years after the start of production.

(b) Total payments under this section to an eligible biofuel producer in a fiscal year may
not exceed the amount necessary for 2,850,000 MMbtu of biofuel production. Total payments
under this section to all eligible biofuel producers in a fiscal year may not exceed the amount
necessary for 17,100,000 MMbtu of biofuel production. The commissioner shall award
payments on a first-come, first-served basis within the limits of available funding.

(c) For purposes of this section, an entity that holds a controlling interest in more than
one advanced biofuel facility is considered a single eligible producer.

Sec. 10.

Minnesota Statutes 2016, section 41A.17, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this program section
must source from Minnesota at least 80 percent biobased content from Minnesota. of the
biomass used to produce a renewable chemical, except that,
if a facility is sited 50 miles or
less from the state border, biobased content must biomass used to produce a renewable
chemical may
be sourced from outside of Minnesota, but only if at least 80 percent of the
biomass is sourced from
within a 100-mile radius of the facility or from within Minnesota.
Biobased content must be from agricultural or forestry sources or from solid waste. The
facility must be located in Minnesota, must begin production at a specific location by June
30, 2025, and must not begin production of 750,000 250,000 pounds of chemicals quarterly
before January 1, 2015. Eligible facilities include existing companies and facilities that are
adding production capacity, or retrofitting existing capacity, as well as new companies and
facilities. Eligible renewable chemical facilities must produce at least 750,000 250,000
pounds of renewable chemicals quarterly. Renewable chemicals produced through processes
that are fully commercial before January 1, 2000, are not eligible.

(b) No payments shall be made for renewable chemical production that occurs after June
30, 2035, for those eligible renewable chemical producers under paragraph (a).

(c) An eligible producer of renewable chemicals shall not transfer the producer's eligibility
for payments under this section to a renewable chemical facility at a different location.

(d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.

(e) Advanced biofuel production for which payment has been received under section
41A.16, and biomass thermal production for which payment has been received under section
41A.18, are not eligible for payment under this section.

Sec. 11.

Minnesota Statutes 2016, section 41A.18, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source from Minnesota at least 80 percent raw materials from Minnesota. of the biomass
used for biomass thermal production, except that,
if a facility is sited 50 miles or less from
the state border, raw materials should biomass used for biomass thermal production may
be sourced from outside of Minnesota, but only if at least 80 percent of the biomass is
sourced from
within a 100-mile radius of the facility, or from within Minnesota. Raw
materials
Biomass must be from agricultural or forestry sources. The facility must be located
in Minnesota, must have begun production at a specific location by June 30, 2025, and must
not begin before July 1, 2015. Eligible facilities include existing companies and facilities
that are adding production capacity, or retrofitting existing capacity, as well as new
companies and facilities. Eligible biomass thermal production facilities must produce at
least 250 MMbtu of biomass thermal quarterly.

(b) No payments shall be made for biomass thermal production that occurs after June
30, 2035, for those eligible biomass thermal producers under paragraph (a).

(c) An eligible producer of biomass thermal production shall not transfer the producer's
eligibility for payments under this section to a biomass thermal production facility at a
different location.

(d) A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.

(e) Biofuel production for which payment has been received under section 41A.16, and
renewable chemical production for which payment has been received under section 41A.17,
are not eligible for payment under this section.

Sec. 12.

Minnesota Statutes 2016, section 41B.056, subdivision 2, is amended to read:


Subd. 2.

Definitions.

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

(b) "Intermediary" means any lending institution or other organization of a for-profit or
nonprofit nature that is in good standing with the state of Minnesota that has the appropriate
business structure and trained personnel suitable to providing efficient disbursement of loan
funds and the servicing and collection of loans.

(c) "Specialty crops" means crops produced in an aquaculture system and agricultural
crops, such as annuals, flowers, perennials, and other horticultural products, that are
intensively cultivated.

(d) "Eligible livestock" means fish produced in an aquaculture system, beef cattle, dairy
cattle, swine, poultry, goats, mules, farmed Cervidae, Ratitae, bison, sheep, horses, and
llamas.

Sec. 13.

[41B.058] RURAL ENERGY FEASIBILITY PROGRAM.

Subdivision 1.

Establishment.

The authority must establish a rural energy feasibility
loan program to provide feasibility study loans to farmers, local units of government,
municipalities, and nonprofit entities to explore feasibility of renewable energy projects.

Subd. 2.

Loan criteria.

(a) The authority may impose a reasonable, nonrefundable
application fee for a rural energy feasibility 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 Rural Finance Authority administrative
account established in section 41B.03.

(b) Standards for loan amortization must be set by the authority and must not exceed
five years.

(c) The borrower must demonstrate ability to repay the loan.

(d) Loans under this program must be made using money in the revolving loan account
established in section 41B.06.

Subd. 3.

Loan participation.

The authority may participate in a rural energy feasibility
loan with an eligible lender, as defined in section 41B.02, subdivision 8. Participation is
limited to 90 percent of the principal amount of the loan or $50,000 per project, whichever
is less.

Sec. 14.

Minnesota Statutes 2016, section 41B.06, is amended to read:


41B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.

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, disaster recovery, value-added agricultural product,
agroforestry, agricultural microloan, and farm opportunity loan, and rural energy feasibility
programs, including costs incurred by the authority to establish and administer the programs.

Sec. 15.

Minnesota Statutes 2016, section 103H.275, subdivision 1, is amended to read:


Subdivision 1.

Areas where groundwater pollution is detected.

(a) If groundwater
pollution is detected, a state agency or political subdivision that regulates an activity causing
or potentially causing a contribution to the pollution identified shall promote implementation
of best management practices to prevent or minimize the source of pollution to the extent
practicable.

(b) The Pollution Control Agency, or for agricultural chemicals and practices, the
commissioner of agriculture may adopt water source protection requirements under
subdivision 2 that are consistent with the goal of section 103H.001 and are commensurate
with the groundwater pollution if the implementation of best management practices has
proven to be ineffective.

(c) The water resources protection requirements must be:

(1) designed to prevent and minimize the pollution to the extent practicable;

(2) designed to prevent the pollution from exceeding the health risk limits; and

(3) submitted to the house of representatives and senate committees with jurisdiction
over the environment, natural resources, and agriculture.

(d) The commissioner of agriculture shall not adopt water resource protection
requirements under subdivision 2 for nitrogen fertilizer unless the water resource protection
requirements are specifically approved by law.

ARTICLE 3

ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS

Section 1. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.

(a) The sums shown in the columns marked "Appropriations" are added to the
appropriations in Laws 2017, chapter 93, article 1, to the agencies and for the purposes
specified in this article. The appropriations are from the general fund, or another named
fund, and are available for the fiscal years indicated for each purpose. The figures "2018"
and "2019" used in this article mean that the appropriations listed under them are available
for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. "The first year" is
fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" is fiscal years 2018
and 2019. Appropriations for the fiscal year ending June 30, 2018, are effective the day
following final enactment.

(b) If an appropriation in this article is enacted more than once in the 2018 legislative
session, the appropriation must be given effect only once.

APPROPRIATIONS
Available for the Year
Ending June 30
2018
2019

Sec. 2. POLLUTION CONTROL AGENCY

$
-0-
$
199,000

$199,000 the second year is from the
environmental fund for the voluntary
certification program for deicer applicators
under Minnesota Statutes, section 116.2025.
The base for fiscal year 2020 and later is
$184,000.

Sec. 3. NATURAL RESOURCES

Subdivision 1.

Total Appropriation

$
50,000
$
2,552,000
Appropriations by Fund
2018
2019
General
-0-
750,000
Natural Resources
-0-
1,802,000
Game and Fish
50,000
-0-

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

Subd. 2.

Land and Mineral Resources
Management

-0-
347,000

$319,000 the second year is from the mineral
management account in the natural resources
fund for environmental research relating to
mine permitting, in consultation with the
Mineral Coordinating Committee.

$28,000 the second year is from the land
acquisition account in the natural resources
fund to compensate the permanent school fund
for a road easement on school trust lands in
Sand Dunes State Forest. This appropriation
must be matched with nonstate money by 20
percent of the total cost of the easement. This
is a onetime appropriation.

Subd. 3.

Ecological and Water Resources

$50,000
-0-

$50,000 the first year is from the heritage
enhancement account in the game and fish
fund to prepare a report on the actions
necessary to protect, restore, and enhance the
naturally occurring wild rice in the public
waters of Minnesota as required under this act.
This is a onetime appropriation and is
available until June 30, 2019.

Subd. 4.

Parks and Trails Management

-0-
1,415,000

(a) $315,000 the second year is from the
natural resources fund for a grant to St. Louis
County to be used as a match to a state
bonding grant for trail and bridge construction
and for a maintenance fund for a five-mile
segment of the Voyageur Country ATV trail
system, including a multiuse bridge over the
Vermilion River that would serve ATVs,
snowmobiles, off-road vehicles, off-highway
motorcycles, and emergency vehicles in St.
Louis County. Of this amount, $285,000 is
from the all-terrain vehicle account, $15,000
is from the off-road vehicle account, and
$15,000 is from the off-highway motorcycle
account. This is a onetime appropriation and
is available until June 30, 2021.

(b) $300,000 the second year is from the
natural resources fund for a grant to Lake
County to match other funding sources to
develop the Prospectors Loop trail system. Of
this amount, $270,000 is from the all-terrain
vehicle account, $15,000 is from the
off-highway motorcycle account, and $15,000
is from the off-road vehicle account. This is
a onetime appropriation and is available until
June 30, 2021.

(c) $100,000 the second year is from the
all-terrain vehicle account in the natural
resources fund for wetland delineation and
work on an environmental assessment
worksheet for the Taconite State Trail from
Ely to Tower consistent with the 2017
Taconite State Trail Master Plan. This is a
onetime appropriation and is available until
June 30, 2021.

(d) $100,000 the second year is from the
all-terrain vehicle account in the natural
resources fund for a grant to the city of
Virginia to develop, in cooperation with the
Quad Cities ATV Club, an all-terrain vehicle
trail system in the cities of Virginia, Eveleth,
Gilbert, and Mountain Iron and surrounding
areas. This is a onetime appropriation and is
available until June 30, 2021.

(e) $200,000 the second year is from the
off-road vehicle account in the natural
resources fund for a contract with a project
administrator to assist the commissioner in
planning, designing, and providing a system
of state touring routes for off-road vehicles by
identifying sustainable, legal routes suitable
for licensed four-wheel drive vehicles and a
system of recreational trails for registered
off-road vehicles. This is a onetime
appropriation.

(f) $200,000 the second year is appropriated
from the off-road vehicle account in the
natural resources fund for a contract to prepare
a comprehensive, statewide, strategic master
plan for trails for off-road vehicles. This is a
onetime appropriation. At a minimum, the
plan must:

(1) identify opportunities to develop new,
high-quality, comprehensive trails for off-road
vehicles in a system that serves regional and
tourist destinations;

(2) enhance connectivity with trails for
off-road vehicles, trails and parks for other
off-highway vehicles, and trails and parks for
other types of vehicles;

(3) provide opportunities for new exposure
and economic development in greater
Minnesota;

(4) help people connect with the outdoors in
a safe and environmentally sustainable
manner;

(5) create new and support existing
opportunities for social, economic, and cultural
benefits and meaningful and mutually
beneficial relationships for users of off-road
vehicles and the communities that host trails
for off-road vehicles; and

(6) require the commissioner to cooperate with
local governments, organizations, and other
interested partners.

(g) $200,000 the second year is from the
off-road vehicle account in the natural
resources fund to reimburse federal, county,
and township entities for additional needs on
forest roads when the needs are a result of
increased use by off-road vehicles and are
attributable to a border-to-border touring route
established by the commissioner. This
paragraph does apply to roads that are operated
by a public road authority as defined in
Minnesota Statutes, section 160.02,
subdivision 25. This is a onetime appropriation
and is available until June 30, 2023. To be
eligible for reimbursement under this
paragraph, the claimant must demonstrate that
the needs result from additional traffic
generated by the border-to-border touring
route.

Subd. 5.

Fish and Wildlife Management

-0-
650,000

(a) $650,000 the second year is for wildlife
disease surveillance and response. This is a
onetime appropriation.

(b) The commissioner may use up to $7,000
of the amount appropriated from the general
fund in Laws 2017, chapter 93, article 1,
section 3, subdivision 8, to cover the cost of:
(1) the redesign of the printed and digital
versions of fishing regulations and hunting
and trapping regulations; and (2) the
reprogramming of the electronic licensing
system, to conform to the requirements of
providing voter registration information under
Minnesota Statutes, section 97A.409.

Subd. 6.

Enforcement

-0-
140,000

(a) $100,000 the second year is for responding
to escaped animals from Cervidae farms,
including inspection of farmed Cervidae,
farmed Cervidae facilities, and farmed
Cervidae records when the commissioner has
reasonable suspicion that laws protecting
native wild animals have been violated. This
is a onetime appropriation.

(b) $40,000 the second year is from the
all-terrain vehicle account in the natural
resources fund to develop a voluntary online
youth all-terrain vehicle training program
under Minnesota Statutes, section 84.925,
subdivision 1. This is a onetime appropriation.

Sec. 4. NATURAL RESOURCES DAMAGES
ACCOUNT TRANSFER

By June 30, 2018, any money in the general
portion of the remediation fund dedicated for
the purposes of the natural resources damages
account must be transferred to the natural
resources damages account.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 5.

Laws 2010, chapter 361, article 4, section 78, is amended to read:


Sec. 78. APPROPRIATION; MOOSE TRAIL.

$100,000 in fiscal year 2011 is appropriated to the commissioner of natural resources
from the all-terrain vehicle account in the natural resources fund for a grant to the city of
Hoyt Lakes to convert the Moose Trail snowmobile trail to for a dual usage trail, so that it
may also be used as an
off-highway vehicle trail connecting the city of Biwabik to the Iron
Range Off-Highway Vehicle Recreation Area. This is a onetime appropriation and is available
until spent June 30, 2020.

Sec. 6.

Laws 2016, chapter 189, article 3, section 3, subdivision 5, is amended to read:


Subd. 5.

Parks and Trails Management

-0-
6,459,000
Appropriations by Fund
2016
2017
General
-0-
2,929,000
Natural Resources
-0-
3,530,000

$2,800,000 the second year is a onetime
appropriation.

$2,300,000 the second year is from the state
parks account in the natural resources fund.
Of this amount, $1,300,000 is onetime, of
which $1,150,000 is for strategic park
acquisition.

$20,000 the second year is from the natural
resources fund to design and erect signs
marking the David Dill trail designated in this
act. Of this amount, $10,000 is from the
snowmobile trails and enforcement account
and $10,000 is from the all-terrain vehicle
account. This is a onetime appropriation.

$100,000 the second year is for the
improvement of the infrastructure for sanitary
sewer service at the Woodenfrog Campground
in Kabetogama State Forest. This is a onetime
appropriation.

$29,000 the second year is for computer
programming related to the transfer-on-death
title changes for watercraft. This is a onetime
appropriation.

$210,000 the first year is from the water
recreation account in the natural resources
fund for implementation of Minnesota
Statutes, section 86B.532, established in this
act. This is a onetime appropriation. The
commissioner of natural resources shall seek
federal and other nonstate funds to reimburse
the department for the initial costs of
producing and distributing carbon monoxide
boat warning labels. All amounts collected
under this paragraph shall be deposited into
the water recreation account.

$1,000,000 the second year is from the natural
resources fund for a grant to Lake County for
construction, including bridges, of the
Prospectors ATV Trail System linking the
communities of Ely, Babbitt, Embarrass, and
Tower; Bear Head Lake and Lake
Vermilion-Soudan Underground Mine State
Parks; the Taconite State Trail; and the Lake
County Regional ATV Trail System. Of this
amount, $900,000 is from the all-terrain
vehicle account, $50,000 is from the
off-highway motorcycle account, and $50,000
is from the off-road vehicle account. This is
a onetime appropriation and is available until
June 30, 2019
.

Sec. 7.

Laws 2016, chapter 189, article 3, section 4, is amended to read:


Sec. 4. BOARD OF WATER AND SOIL
RESOURCES

$
-0-
$
479,000

$479,000 the second year is for the
development of a detailed plan to implement
a working lands watershed restoration program
to incentivize the establishment and
maintenance of perennial crops that includes
the following:

(1) a process for selecting pilot watersheds
that are expected to result in the greatest water
quality improvements and exhibit readiness
to participate in the program;

(2) an assessment of the quantity of
agricultural land that is expected to be eligible
for the program in each watershed;

(3) an assessment of landowner interest in
participating in the program;

(4) an assessment of the contract terms and
any recommendations for changes to the terms,
including consideration of variable payment
rates for lands of different priority or type;

(5) an assessment of the opportunity to
leverage federal funds through the program
and recommendations on how to maximize
the use of federal funds for assistance to
establish perennial crops;

(6) an assessment of how other state programs
could complement the program;

(7) an estimate of water quality improvements
expected to result from implementation in pilot
watersheds;

(8) an assessment of how to best integrate
program implementation with existing
conservation requirements and develop
recommendations on harvest practices and
timing to benefit wildlife production;

(9) an assessment of the potential viability and
water quality benefit of cover crops used in
biomass processing facilities;

(10) a timeline for implementation,
coordinated to the extent possible with
proposed biomass processing facilities; and

(11) a projection of funding sources needed
to complete implementation.;

(12) outreach to local governments, interest
groups, and individual farmers on the
economic and environmental benefits of
perennial and cover crops;

(13) establishment of detailed criteria to target
the location of perennial and cover crops on
a watershed basis to maximize the
environmental benefit at the lowest cost; and

(14) development of model contracts to
include payment rates, duration, type of crops,
harvest standards, and monitoring procedures
for use in future program implementation.

This is a onetime appropriation and is
available until June 30, 2018 2019.

The board shall coordinate development of
the working lands watershed restoration plan
with stakeholders and the commissioners of
natural resources, agriculture, and the
Pollution Control Agency. The board must
submit an interim report by October 15, 2017
2018
, and the feasibility study and program
plan by February 1, 2018 2019, to the chairs
and ranking minority members of the
legislative committees and divisions with
jurisdiction over agriculture, natural resources,
and environment policy and finance and to the
Clean Water Council.

Sec. 8.

Laws 2017, chapter 93, article 1, section 3, subdivision 6, is amended to read:


Subd. 6.

Fish and Wildlife Management

68,207,000
67,750,000
69,210,000
Appropriations by Fund
2018
2019
Natural Resources
1,912,000
1,912,000
Game and Fish
66,295,000
65,838,000
67,298,000

(a) $8,283,000 the first year and $8,386,000
the second year are from the heritage
enhancement account in the game and fish
fund only for activities specified in Minnesota
Statutes, section 297A.94, paragraph (e),
clause (1). Notwithstanding Minnesota
Statutes, section 297A.94, five percent of this
appropriation may be used for expanding
hunter and angler recruitment and retention.

(b) Notwithstanding Minnesota Statutes,
section 297A.94, $30,000 the first year is from
the heritage enhancement account in the game
and fish fund for the commissioner of natural
resources to contract with a private entity to
search for a site to construct a world-class
shooting range and club house for use by the
Minnesota State High School League and for
other regional, statewide, national, and
international shooting events. The
commissioner must provide public notice of
the search, including making the public aware
of the process through the Department of
Natural Resources' media outlets, and solicit
input on the location and building options for
the facility. The siting search process must
include a public process to determine if any
business or individual is interested in donating
land for the facility, anticipated to be at least
500 acres. The site search team must meet
with interested third parties affected by or
interested in the facility. The commissioner
must submit a report with the results of the
site search to the chairs and ranking minority
members of the legislative committees and
divisions with jurisdiction over environment
and natural resources by March 1, 2018. This
is a onetime appropriation.

(c) Notwithstanding Minnesota Statutes,
section 297A.94, $30,000 the first year is from
the heritage enhancement account in the game
and fish fund for a study of lead shot
deposition on state lands. By March 1, 2018,
the commissioner shall provide a report of the
study to the chairs and ranking minority
members of the legislative committees with
jurisdiction over natural resources policy and
finance. This is a onetime appropriation.

(d) Notwithstanding Minnesota Statutes,
section 297A.94, $500,000 the first year is
from the heritage enhancement account in the
game and fish fund for planning and
emergency response to disease outbreaks in
wildlife. This is a onetime appropriation and
is available until June 30, 2019.

(e) $8,606,000 the second year is from the
deer management account in the game and
fish fund for the purposes specified under
Minnesota Statutes, section 97A.075,
subdivision 1, paragraph (b).

Sec. 9.

Laws 2017, chapter 93, article 1, section 4, is amended to read:


Sec. 4. BOARD OF WATER AND SOIL
RESOURCES

$
14,311,000
$
14,164,000

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

(b) $3,116,000 the first year and $3,116,000
the second year are for grants to soil and water
conservation districts for the purposes of
Minnesota Statutes, sections 103C.321 and
103C.331, and for general purposes, nonpoint
engineering, and implementation and
stewardship of the reinvest in Minnesota
reserve program. Expenditures may be made
from these appropriations for supplies and
services benefiting soil and water conservation
districts. Any district receiving a payment
under this paragraph shall maintain a Web
page that publishes, at a minimum, its annual
report, annual audit, annual budget, and
meeting notices.

(c) $260,000 the first year and $260,000 the
second year are for feedlot water quality cost
share grants for feedlots under 300 animal
units and nutrient and manure management
projects in watersheds where there are
impaired waters.

(d) $1,200,000 the first year and $1,200,000
the second year are for soil and water
conservation district cost-sharing contracts for
perennially vegetated riparian buffers, erosion
control, water retention and treatment, and
other high-priority conservation practices.

(e) $100,000 the first year and $100,000 the
second year are for county cooperative weed
management cost-share programs and to
restore native plants in selected invasive
species management sites.

(f) $761,000 the first year and $761,000 the
second year are for implementation,
enforcement, and oversight of the Wetland
Conservation Act, including administration of
the wetland banking program and in-lieu fee
mechanism.

(g) $300,000 the first year is for improving
the efficiency and effectiveness of Minnesota's
wetland regulatory programs through
continued examination of United States Clean
Water Act section 404 assumption including
negotiation of draft agreements with the
United States Environmental Protection
Agency and the United States Army Corps of
Engineers, planning for an online permitting
system, upgrading the existing wetland
banking database, and developing an in-lieu
fee wetland banking program as authorized
by statute. This is a onetime appropriation and
is available until June 30, 2019
.

(h) $166,000 the first year and $166,000 the
second year are to provide technical assistance
to local drainage management officials and
for the costs of the Drainage Work Group. The
Board of Water and Soil Resources must
coordinate the stakeholder drainage work
group in accordance with Minnesota Statutes,
section 103B.101, subdivision 13, to evaluate
and make recommendations to accelerate
drainage system acquisition and establishment
of ditch buffer strips under Minnesota Statutes,
chapter 103E, or compatible alternative
practices required by Minnesota Statutes,
section 103F.48. The evaluation and
recommendations must be submitted in a
report to the senate and house of
representatives committees with jurisdiction
over agriculture and environment policy by
February 1, 2018.

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

(j) $140,000 the first year and $140,000 the
second year are for grants to Area II
Minnesota River Basin Projects for floodplain
management.

(k) $125,000 the first year and $125,000 the
second year are for conservation easement
stewardship.

(l) $240,000 the first year and $240,000 the
second year are for a grant to the Lower
Minnesota River Watershed District to defray
the annual cost of operating and maintaining
sites for dredge spoil to sustain the state,
national, and international commercial and
recreational navigation on the lower Minnesota
River.

(m) $4,380,000 the first year and $4,533,000
the second year are for Board of Water and
Soil Resources agency administration and
operations.

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

(o) The appropriations for grants in this section
are available until June 30, 2021, except
returned grants are available for two years
after they are returned. If an appropriation for
grants in either year is insufficient, the
appropriation in the other year is available for
it.

(p) Notwithstanding Minnesota Statutes,
section 16B.97, the appropriations for grants
in this section are exempt from Department
of Administration, Office of Grants
Management Policy 08-08 Grant Payments
and 08-10 Grant Monitoring.

ARTICLE 4

ENVIRONMENT AND NATURAL RESOURCES POLICY

Section 1.

Minnesota Statutes 2017 Supplement, section 84.01, subdivision 6, is amended
to read:


Subd. 6.

Legal counsel.

The commissioner of natural resources may appoint attorneys
or outside counsel to render title opinions, represent the department in severed mineral
interest forfeiture actions brought pursuant to section 93.55, and, notwithstanding any statute
to the contrary, represent the state in quiet title or title registration actions affecting land or
interests in land administered by the commissioner and in all proceedings relating to road
vacations
.

Sec. 2.

Minnesota Statutes 2016, section 84.0895, subdivision 2, is amended to read:


Subd. 2.

Application.

(a) Subdivision 1 does not apply to:

(1) plants on land classified for property tax purposes as class 2a or 2c agricultural land
under section 273.13, or on ditches and roadways a ditch, or on an existing public road
right-of-way as defined in section 84.92, subdivision 6a, except for ground not previously
disturbed by construction or maintenance
; and

(2) noxious weeds designated pursuant to sections 18.76 to 18.88 or to weeds otherwise
designated as troublesome by the Department of Agriculture.

(b) If control of noxious weeds is necessary, it takes priority over the protection of
endangered plant species, as long as a reasonable effort is taken to preserve the endangered
plant species first.

(c) The taking or killing of an endangered plant species on land adjacent to class 3 or
3b agricultural land as a result of the application of pesticides or other agricultural chemical
on the class 3 or 3b land is not a violation of subdivision 1, if reasonable care is taken in
the application of the pesticide or other chemical to avoid impact on adjacent lands. For the
purpose of this paragraph, class 3 or 3b agricultural land does not include timber land, waste
land, or other land for which the owner receives a state paid wetlands or native prairie tax
credit.

(d) The accidental taking of an endangered plant, where the existence of the plant is not
known at the time of the taking, is not a violation of subdivision 1.

Sec. 3.

Minnesota Statutes 2016, 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, subdivision 1 or 2, clause
(1); 84.777; 84.788 to 84.795; or 84.90;

(2) an off-road vehicle in violation of sections 84.773, subdivision 1 or 2, clause (1);
84.777; 84.798 to 84.804; or 84.90; or

(3) an all-terrain vehicle in violation of sections 84.773, subdivision 1 or 2, clause (1);
84.777; 84.90; or 84.922 to 84.928.

(b) A civil citation under paragraph (a) 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) 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:

(1) $100 for the first offense;

(2) $500 for the second offense; and

(3) $1,000 for third and subsequent offenses.

(d) 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.

(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).

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 4.

Minnesota Statutes 2016, section 84.83, subdivision 3, is amended to read:


Subd. 3.

Purposes for the account; allocation.

(a) 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; on Lake of the Woods; on Rainy Lake; on the following lakes in
St. Louis County: Burntside, Crane, Little Long, Mud, Pelican, Shagawa, and Vermilion;
and on the following lakes in Cook County: Devil Track and Hungry Jack;

(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.

(b) No less than 60 percent of revenue collected from snowmobile registration and
snowmobile state trail sticker fees
deposited in the snowmobile trails and enforcement
account
must be expended for grants-in-aid to develop, maintain, and groom trails and
acquire easements.

EFFECTIVE DATE.

This section is effective July 1, 2018.

Sec. 5.

Minnesota Statutes 2016, 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, to include a $1 issuing fee for licensing agents, 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, except for the issuing
fee for licensing agents under this subdivision, shall be deposited in the snowmobile trails
and enforcement account in the natural resources fund and the amount thereof, except for
the electronic licensing system commission established by the commissioner under section
84.027, subdivision 15, and issuing fees collected by the commissioner, 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 any fee paid by the instructor for the person's online
training course and
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.

Sec. 6.

Minnesota Statutes 2017 Supplement, section 84.91, subdivision 1, is amended to
read:


Subdivision 1.

Acts prohibited.

(a) No owner or other person having charge or control
of any snowmobile or all-terrain vehicle shall authorize or permit any individual the person
knows or has reason to believe is under the influence of alcohol or a controlled substance
or other substance to operate the snowmobile or all-terrain vehicle anywhere in this state
or on the ice of any boundary water of this state.

(b) No owner or other person having charge or control of any snowmobile or all-terrain
vehicle shall knowingly authorize or permit any person, who by reason of any physical or
mental disability is incapable of operating the vehicle, to operate the snowmobile or all-terrain
vehicle anywhere in this state or on the ice of any boundary water of this state.

(c) A person who operates or is in physical control of a snowmobile or all-terrain vehicle
anywhere in this state or on the ice of any boundary water of this state is subject to chapter
169A. In addition to the applicable sanctions under chapter 169A, a person who is convicted
of violating section 169A.20 or an ordinance in conformity with it while operating a
snowmobile or all-terrain vehicle
, or who refuses to comply with a lawful request to submit
to testing under sections 169A.50 to 169A.53 or 171.177, or an ordinance in conformity
with it, shall be prohibited from operating a snowmobile or all-terrain vehicle for a period
of one year. The commissioner shall notify the person of the time period during which the
person is prohibited from operating a snowmobile or all-terrain vehicle.

(d) Administrative and judicial review of the operating privileges prohibition is governed
by section 97B.066, subdivisions 7 to 9, if the person does not have a prior impaired driving
conviction or prior license revocation, as defined in section 169A.03. Otherwise,
administrative and judicial review of the prohibition is governed by section 169A.53 or
171.177.

(e) The court shall promptly forward to the commissioner and the Department of Public
Safety copies of all convictions and criminal and civil sanctions imposed under:

(1) this section and chapters;

(2) chapter 169 and relating to snowmobiles and all-terrain vehicles;

(3) chapter 169A relating to snowmobiles and all-terrain vehicles.; and

(4) section 171.177.

(f) A person who violates paragraph (a) or (b), or an ordinance in conformity with either
of them, is guilty of a misdemeanor. A person who operates a snowmobile or all-terrain
vehicle during the time period the person is prohibited from operating a vehicle under
paragraph (c) is guilty of a misdemeanor.

EFFECTIVE DATE.

This section is effective August 1, 2018, and applies to violations
committed on or after that date.

Sec. 7.

Minnesota Statutes 2017 Supplement, section 84.925, subdivision 1, is amended
to read:


Subdivision 1.

Program Training and certification programs established.

(a) The
commissioner shall establish:

(1) a comprehensive all-terrain vehicle environmental and safety education and training
certification 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.; and

(2) a voluntary all-terrain vehicle online training program for youth and a parent or
guardian, offered at no charge for operators at least six years of age but younger than ten
years of age.

(b) A parent or guardian must be present at the hands-on a training portion of the program
for when the youth who are six through ten is under ten years of age.

(b) (c) For the purpose of administering the program and to defray the expenses of
training and certifying vehicle operators, the commissioner shall collect a fee from each
person who receives the training for certification under paragraph (a), clause (1). The
commissioner shall collect a fee, to include a $1 issuing fee for licensing agents, for issuing
a duplicate all-terrain vehicle 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. Fee proceeds, except for the issuing
fee for licensing agents under this subdivision, shall be deposited in the all-terrain vehicle
account in the natural resources fund and the amount thereof, except for the electronic
licensing system commission established by the commissioner under section 84.027,
subdivision 15
, and issuing fees collected by the commissioner, is appropriated annually to
the Enforcement Division of the Department of Natural Resources for the administration
of the 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.

(c) (d) The commissioner shall cooperate with private organizations and associations,
private and public corporations, and local governmental units in furtherance of the program
programs
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 the subject matter of the training programs and performance testing that
leads to the certification of vehicle operators. The commissioner shall incorporate a riding
component in the safety education and training program programs established under this
section
.

Sec. 8.

Minnesota Statutes 2017 Supplement, section 84.9256, subdivision 1, is amended
to read:


Subdivision 1.

Prohibitions on youthful operators.

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

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

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

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

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

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

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

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

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

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

(f) A person at least ten years of age but under 12 years of age may operate an all-terrain
vehicle with an engine capacity up to 110cc if the vehicle is a class 1 all-terrain vehicle with
straddle-style seating or up to 170cc if the vehicle is a class 1 all-terrain vehicle with
side-by-side-style seating on public lands or waters if accompanied by a parent or legal
guardian.

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

(h) A person under the age of 16 may not operate an all-terrain vehicle on public lands
or waters or on state or grant-in-aid trails if the person cannot properly reach and control:

(1) the handle bars and reach the foot pegs while sitting upright on the seat of the
all-terrain vehicle with straddle-style seating; or

(2) the steering wheel and foot controls of a class 1 all-terrain vehicle with
side-by-side-style seating while sitting upright in the seat with the seat belt fully engaged.

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

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

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

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

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

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

Sec. 9.

[84.9258] ALL-TERRAIN VEHICLE PILOT PROJECT; HAYES LAKE
STATE PARK.

(a) A person may operate an all-terrain vehicle in campground areas at Hayes Lake State
Park designated by the commissioner of natural resources under this section. The all-terrain
vehicle must have a valid state park permit. The commissioner must issue an annual permit
for an all-terrain vehicle at the same fee and in the same manner as an annual motorcycle
state park permit, unless the all-terrain vehicle is being permitted annually as a second or
subsequent vehicle. The person operating the all-terrain vehicle must display the state park
permit on the all-terrain vehicle or carry the state park permit while operating the vehicle.

(b) By August 1, 2018, the commissioner of natural resources, in cooperation with
Roseau County and the Friends of Hayes Lake State Park, must designate campground areas
at Hayes Lake State Park and access routes to those campgrounds from nearby all-terrain
vehicle trails as accessible to all-terrain vehicles. The campground areas and access routes
designated must have been previously open to motorized vehicle use.

(c) Designations made under this section are not subject to the rulemaking provisions
of chapter 14, and section 14.386 does not apply.

(d) This section expires January 1, 2021.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 10.

Minnesota Statutes 2016, 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 than one person on the vehicle, 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; or

(9) 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

(10) (9) in a manner that violates operation rules adopted by the commissioner.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 11.

Minnesota Statutes 2017 Supplement, section 84D.03, subdivision 3, is amended
to read:


Subd. 3.

Bait harvest from infested waters.

(a) Taking wild animals from infested
waters for bait or aquatic farm purposes is prohibited except as provided in paragraph (b),
(c), or (d) and section 97C.341.

(b) In waters that are listed as infested waters, except those listed as infested with
prohibited invasive species of fish or certifiable diseases of fish, as defined under section
17.4982, subdivision 6, taking wild animals may be permitted for:

(1) commercial taking of wild animals for bait and aquatic farm purposes as provided
in a permit issued under section 84D.11, subject to rules adopted by the commissioner; and

(2) bait purposes for noncommercial personal use in waters that contain Eurasian
watermilfoil, when the infested waters are listed solely because they contain Eurasian
watermilfoil and if the equipment for taking is limited to cylindrical minnow traps not
exceeding 16 inches in diameter and 32 inches in length.

(c) In streams or rivers that are listed as infested waters, except those listed as infested
with certifiable diseases of fish, as defined under section 17.4982, subdivision 6, the harvest
of bullheads, goldeyes, mooneyes, sheepshead (freshwater drum), and suckers for bait by
hook and line for noncommercial personal use is allowed as follows:

(1) fish taken under this paragraph must be used on the same body of water where caught
and while still on that water body. Where the river or stream is divided by barriers such as
dams, the fish must be caught and used on the same section of the river or stream;

(2) fish taken under this paragraph may not be transported live from or off the water
body;

(3) fish harvested under this paragraph may only be used in accordance with this section;

(4) any other use of wild animals used for bait from infested waters is prohibited;

(5) fish taken under this paragraph must meet all other size restrictions and requirements
as established in rules; and

(6) all species listed under this paragraph shall be included in the person's daily limit as
established in rules, if applicable.

(d) In the Minnesota River downstream of Granite Falls, the Mississippi River
downstream of St. Anthony Falls, and the St. Croix River downstream of the dam at Taylors
Falls, including portions described as Minnesota-Wisconsin boundary waters in Minnesota
Rules, part 6266.0500, subpart 1, items A and B, the harvest of gizzard shad by cast net for
noncommercial personal use as bait for angling, as provided in a permit issued under section
84D.11, is allowed as follows:

(1) nontarget species must immediately be returned to the water;

(2) gizzard shad taken under this paragraph must be used on the same body of water
where caught and while still on that water body. Where the river is divided by barriers such
as dams, the gizzard shad must be caught and used on the same section of the river;

(3) gizzard shad taken under this paragraph may not be transported off the water body;
and

(4) gizzard shad harvested under this paragraph may only be used in accordance with
this section.

This paragraph expires December 1, 2017.

(e) Equipment authorized for minnow harvest in a listed infested water by permit issued
under paragraph (b) may not be transported to, or used in, any waters other than waters
specified in the permit.

(f) Bait intended for sale may not be held in infested water after taking and before sale,
unless authorized under a license or permit according to Minnesota Rules, part 6216.0500.

EFFECTIVE DATE.

This section is effective retroactively from December 1, 2017.

Sec. 12.

Minnesota Statutes 2017 Supplement, section 84D.03, subdivision 4, is amended
to read:


Subd. 4.

Restrictions in infested and noninfested waters; commercial fishing and
turtle, frog, and crayfish harvesting.

(a) All nets, traps, buoys, anchors, stakes, and lines
used for commercial fishing or turtle, frog, or crayfish harvesting in an infested water that
is listed because it contains invasive fish, invertebrates, aquatic plants or aquatic macrophytes
other than Eurasian watermilfoil,
or certifiable diseases, as defined in section 17.4982, must
be tagged with tags provided by the commissioner, as specified in the commercial licensee's
license or permit. Tagged gear must not be used in water bodies other than those specified
in the license or permit. The license or permit may authorize department staff to remove
tags after the from gear is that has been decontaminated according to a protocol specified
by the commissioner if use of the decontaminated gear in other water bodies would not pose
an unreasonable risk of harm to natural resources or the use of natural resources in the state
.
This tagging requirement does not apply to commercial fishing equipment used in Lake
Superior.

(b) All nets, traps, buoys, anchors, stakes, and lines used for commercial fishing or turtle,
frog, or crayfish harvesting in an infested water that is listed solely because it contains
Eurasian watermilfoil must be dried for a minimum of ten days or frozen for a minimum
of two days before they are used in any other waters, except as provided in this paragraph.
Commercial licensees must notify the department's regional or area fisheries office or a
conservation officer before removing nets or equipment from an infested water listed solely
because it contains Eurasian watermilfoil and before resetting those nets or equipment in
any other waters. 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 listed
as infested solely because it contains Eurasian watermilfoil.

(c) A commercial licensee must remove all aquatic macrophytes from nets and other
equipment before placing the equipment into waters of the state.

(d) The commissioner shall provide a commercial licensee with a current listing of listed
infested waters at the time that a license or permit is issued.

Sec. 13.

Minnesota Statutes 2017 Supplement, section 84D.108, subdivision 2b, is amended
to read:


Subd. 2b.

Gull Lake pilot study.

(a) The commissioner may include an additional
targeted pilot study to include water-related equipment with zebra mussels attached for the
Gull Narrows State Water Access Site, Government Point State Water Access Site, and
Gull East State
water access Site sites on Gull Lake (DNR Division of Waters number
11-0305) in Cass and Crow Wing Counties using the same authorities, general procedures,
and requirements provided for the Lake Minnetonka pilot project in subdivision 2a. Lake
service providers participating in the Gull Lake targeted pilot study place of business must
be located in Cass or Crow Wing County.

(b) If an additional targeted pilot project for Gull Lake is implemented under this section,
the report to the chairs and ranking minority members of the senate and house of
representatives committees having jurisdiction over natural resources required under Laws
2016, chapter 189, article 3, section 48, must also include the Gull Lake targeted pilot study
recommendations and assessments.

(c) This subdivision expires December 1, 2019.

Sec. 14.

Minnesota Statutes 2017 Supplement, section 84D.108, subdivision 2c, is amended
to read:


Subd. 2c.

Cross Lake pilot study.

(a) The commissioner may include an additional
targeted pilot study to include water-related equipment with zebra mussels attached for the
Cross Lake #1 State
water access Site sites on Cross Lake (DNR Division of Waters number
18-0312) in Crow Wing County using the same authorities, general procedures, and
requirements provided for the Lake Minnetonka pilot project in subdivision 2a. The place
of business of lake service providers participating in the Cross Lake targeted pilot study
must be located in Cass or Crow Wing County.

(b) If an additional targeted pilot project for Cross Lake is implemented under this
section, the report to the chairs and ranking minority members of the senate and house of
representatives committees having jurisdiction over natural resources required under Laws
2016, chapter 189, article 3, section 48, must also include the Cross Lake targeted pilot
study recommendations and assessments.

(c) This subdivision expires December 1, 2019.

Sec. 15.

Minnesota Statutes 2017 Supplement, section 85.0146, subdivision 1, is amended
to read:


Subdivision 1.

Advisory council created.

The Cuyuna Country State Recreation Area
Citizens Advisory Council is established. Membership on the advisory council shall include:

(1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers Board
Cuyuna Range Economic Development Inc.
;

(2) a representative of for the Croft Mine Historical Park Joint Powers Board;

(3) a designee of the Cuyuna Range Mineland Reclamation Committee who has worked
as a miner in the local area
member at large appointed by the members of the council;

(4) a representative of the Crow Wing County Board;

(5) an elected state official the state senator representing the state recreation area;

(6) the member from the state house of representatives representing the state recreation
area;

(7) a representative of the Grand Rapids regional office of the Department of Natural
Resources;

(7) (8) a designee of the commissioner of Iron Range resources and rehabilitation;

(8) (9) a designee of the local business community selected by the area chambers of
commerce;

(9) (10) a designee of the local environmental community selected by the Crow Wing
County District 5 commissioner;

(10) (11) a designee of a local education organization selected by the Crosby-Ironton
School Board;

(11) (12) a designee of one of the recreation area user groups selected by the Cuyuna
Range Chamber of Commerce; and

(12) (13) a member of the Cuyuna Country Heritage Preservation Society.

Sec. 16.

Minnesota Statutes 2016, section 86B.005, subdivision 8a, is amended to read:


Subd. 8a.

Marine carbon monoxide detection system.

"Marine carbon monoxide
detection system" means a device or system that meets the requirements of the American
Boat and Yacht Council Standard A-24, July, 2015, for carbon monoxide detection systems.

for detecting carbon monoxide that is certified by a nationally recognized testing laboratory
to conform to current UL Standards for use on recreational boats.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 17.

Minnesota Statutes 2016, section 86B.532, subdivision 1, is amended to read:


Subdivision 1.

Requirements; installation.

(a) No motorboat that has an enclosed
accommodation compartment may be operated on any waters of the state unless the motorboat
is equipped with a functioning marine carbon monoxide detection system installed according
to the manufacturer's instructions and this subdivision.

(b) After May 1, 2017, No new motorboat that has an enclosed accommodation
compartment may be sold or offered for sale in Minnesota unless the motorboat is equipped
with a new functioning marine carbon monoxide detection system installed according to
the manufacturer's instructions and this subdivision.

(c) A marine carbon monoxide detection system must be located:

(1) to monitor the atmosphere of the enclosed accommodation compartment; and

(2) within ten feet or 3.048 meters of any designated sleeping accommodations.

(d) A marine carbon monoxide detection system, including a sensor, must not be located
within five feet or 1.52 meters of any cooking appliance.

EFFECTIVE DATE.

This section is effective May 1, 2018.

Sec. 18.

Minnesota Statutes 2016, section 88.10, is amended by adding a subdivision to
read:


Subd. 3.

Wildland firefighters; training and licensing.

Forest officers and all
individuals employed as wildland firefighters under this chapter are not subject to the
requirements of chapter 299N.

Sec. 19.

Minnesota Statutes 2016, section 88.75, subdivision 1, is amended to read:


Subdivision 1.

Misdemeanor offenses; damages; injunctive relief.

(a) Any person
who violates any of the provisions of sections 88.03 to 88.22 for which no specific penalty
is therein prescribed shall be guilty of a misdemeanor and be punished accordingly.

(b) Failure by any person to comply with any provision or requirement of sections 88.03
to 88.22 to which such person is subject shall be deemed a violation thereof.

(c) Any person who violates any provisions of sections 88.03 to 88.22, in addition to
any penalties therein prescribed, or hereinbefore in this section prescribed, for such violation,
shall also be liable in full damages to any and every person suffering loss or injury by reason
of such violation, including liability to the state, and any of its political subdivisions, for
all expenses incurred in fighting or preventing the spread of, or extinguishing, any fire
caused by, or resulting from, any violation of these sections. Notwithstanding any statute
to the contrary, an attorney who is licensed to practice law in Minnesota and is an employee
of the Department of Natural Resources may represent the commissioner in proceedings
under this subdivision that are removed to district court from conciliation court.
All expenses
so collected by the state shall be deposited in the general fund. When a fire set by any person
spreads to and damages or destroys property belonging to another, the setting of the fire
shall be prima facie evidence of negligence in setting and allowing the same to spread.

(d) At any time the state, or any political subdivision thereof, either of its own motion,
or at the suggestion or request of the director, may bring an action in any court of competent
jurisdiction to restrain, enjoin, or otherwise prohibit any violation of sections 88.03 to 88.22,
whether therein described as a crime or not, and likewise to restrain, enjoin, or prohibit any
person from proceeding further in, with, or at any timber cutting or other operations without
complying with the provisions of those sections, or the requirements of the director pursuant
thereto; and the court may grant such relief, or any other appropriate relief, whenever it
shall appear that the same may prevent loss of life or property by fire, or may otherwise aid
in accomplishing the purposes of sections 88.03 to 88.22.

Sec. 20.

Minnesota Statutes 2016, section 89.551, is amended to read:


89.551 APPROVED FIREWOOD REQUIRED.

(a) After the commissioner issues an order under paragraph (b), a person may not possess
firewood on land administered by the commissioner of natural resources unless the firewood:

(1) was obtained from a firewood distribution facility located on land administered by
the commissioner;

(2) was obtained from a firewood dealer who is selling firewood that is approved by the
commissioner under paragraph (b); or

(3) has been approved by the commissioner of natural resources under paragraph (b).

(b) The commissioner of natural resources shall, by written order published in the State
Register, approve firewood for possession on lands administered by the commissioner. The
order is not subject to the rulemaking provisions of chapter 14, and section 14.386 does not
apply.

(c) A violation under this section is subject to confiscation of firewood and after May
1, 2008, confiscation
and a $100 penalty. A firewood dealer shall be subject to confiscation
and assessed a $100 penalty for each sale of firewood not approved under the provisions
of this section and sold for use on land administered by the commissioner.

(d) For the purposes of this section, "firewood" means any wood that is intended for use
in a campfire, as defined in section 88.01, subdivision 25.

Sec. 21.

Minnesota Statutes 2016, section 97A.051, subdivision 2, is amended to read:


Subd. 2.

Summary of fish and game laws.

(a) The commissioner shall prepare a
summary of the hunting and fishing laws and rules and deliver a sufficient supply to license
vendors to furnish one copy to each person obtaining a hunting, fishing, or trapping license.

(b) At the beginning of the summary, under the heading "Trespass," the commissioner
shall summarize the trespass provisions under sections 97B.001 to 97B.945, state that
conservation officers and peace officers must enforce the trespass laws, and state the penalties
for trespassing.

(c) In the summary the commissioner shall, under the heading "Duty to Render Aid,"
summarize the requirements under section 609.662 and state the penalties for failure to
render aid to a person injured by gunshot.

Sec. 22.

Minnesota Statutes 2017 Supplement, section 97A.075, subdivision 1, is amended
to read:


Subdivision 1.

Deer, bear, and lifetime licenses.

(a) For purposes of this subdivision,
"deer license" means a license issued under section 97A.475, subdivisions 2, clauses (5),
(6), (7), (13), (14), and (15); 3, paragraph (a), clauses (2), (3), (4), (10), (11), and (12); and
8, paragraph (b), and licenses issued under section 97B.301, subdivision 4.

(b) $16 from each annual deer license issued under section 97A.475, subdivisions 2,
clauses (5), (6), and (7); 3, paragraph (a), clauses (2), (3), and (4); and 8, paragraph (b);
$2
from each annual deer license and $2 issued under sections 97A.475, subdivisions 2, clauses
(13), (14), and (15); and 3, paragraph (a), clauses (10), (11), and (12); and 97B.301,
subdivision 4; $16
annually from the lifetime fish and wildlife trust fund, established in
section 97A.4742, for each license issued to a person 18 years of age or older under section
97A.473, subdivision 4,; and $2 annually from the lifetime fish and wildlife trust fund for
each license issued to a person under 18 years of age under section 97A.473, subdivision
4,
shall be credited to the deer management account and is appropriated to the commissioner
for deer habitat improvement or deer management programs
. The deer management account
is established as an account in the game and fish fund and may be used only for deer habitat
improvement or deer management programs.

(c) $1 from each annual deer license and each bear license and $1 annually from the
lifetime fish and wildlife trust fund, established in section 97A.4742, for each license issued
under section 97A.473, subdivision 4, shall be credited to the deer and bear management
account and is appropriated to the commissioner for deer- and bear-management programs,
including a computerized licensing system.

(d) Fifty cents from each deer license is credited to the emergency deer feeding and wild
Cervidae health-management account and is appropriated for emergency deer feeding and
wild Cervidae health management. Money appropriated for emergency deer feeding and
wild Cervidae health management is available until expended.

When the unencumbered balance in the appropriation for emergency deer feeding and
wild Cervidae health management exceeds $2,500,000 at the end of a fiscal year, the
unencumbered balance in excess of $2,500,000 is canceled and available for deer- and
bear-management programs and computerized licensing.

Sec. 23.

[97A.409] VOTER REGISTRATION INFORMATION.

(a) On the Department of Natural Resources online license sales Web site for purchasing
a resident license to hunt or fish that is required under the game and fish laws, the
commissioner must include the voter registration eligibility requirements and a description
of how to register to vote before or on election day. On the Web page where an individual
has the option to print a license to hunt or fish, the commissioner must include a direct link
to the secretary of state's online voter registration Web page.

(b) In the printed and digital versions of fishing regulations and hunting and trapping
regulations, the commissioner must include the voter registration eligibility requirements,
a description of how to register to vote before or on election day, and a link to the secretary
of state's online voter registration Web page. In addition, the commissioner must include a
voter registration application in the printed and digital versions of fishing regulations and
hunting and trapping regulations.

(c) The secretary of state must provide the required voter registration information to the
commissioner. The secretary of state must prepare and approve an alternate form of the
voter registration application to be used in the regulations.

EFFECTIVE DATE.

Paragraph (a) is effective August 1, 2018, and applies to licenses
issued on or after March 1, 2019. Paragraph (b) is effective August 1, 2018, and applies to
printed and digital versions of regulations updated on or after that date.

Sec. 24.

Minnesota Statutes 2016, section 97A.433, subdivision 4, is amended to read:


Subd. 4.

Discretionary separate selection; eligibility.

(a) The commissioner may
conduct a separate selection for up to 20 percent of the elk licenses to be issued for an area.
Only owners of, and tenants living on, at least 160 acres of agricultural or grazing land in
the area, and their family members, are eligible for the separate selection. Persons that are
unsuccessful in a separate selection must be included in the selection for the remaining
licenses. Persons who obtain an elk license in a separate selection must allow public elk
hunting on their land during the elk season for which the license is valid
may sell the license
to any Minnesota resident eligible to hunt big game for no more than the original cost of
the license
.

(b) The commissioner may by rule establish criteria for determining eligible family
members under this subdivision.

Sec. 25.

Minnesota Statutes 2016, section 97A.433, subdivision 5, is amended to read:


Subd. 5.

Mandatory separate selection.

The commissioner must conduct a separate
selection for 20 percent of the elk licenses to be issued each year. Only individuals who
have applied at least ten times for an elk license and who have never received a license are
eligible for this separate selection. A person who is unsuccessful in a separate selection
under this subdivision must be included in the selection for the remaining licenses.

Sec. 26.

Minnesota Statutes 2016, section 97A.56, subdivision 2, is amended to read:


Subd. 2.

Prohibited actions; penalty.

(a) A person may not possess or release feral
swine or swine that were feral during any part of the swine's lifetime or allow feral swine
to run at large. Except as provided under paragraph (b), a person may not possess feral
swine or swine that were feral during any part of the swine's lifetime.

(b) A person may not hunt or trap feral swine, except as authorized by the commissioner
for feral swine control or eradication. It is not a violation of this section if a person shoots
a feral swine and reports the taking to the commissioner within 24 hours. All swine taken
in this manner must be surrendered to the commissioner unless the commissioner authorizes
the person to keep the swine
.

(c) A person who violates this subdivision is guilty of a misdemeanor.

Sec. 27.

Minnesota Statutes 2016, section 97B.015, subdivision 6, is amended to read:


Subd. 6.

Provisional certificate for persons with permanent physical or
developmental disability.

Upon the recommendation of a course instructor, the
commissioner may issue a provisional firearms safety certificate to a person who satisfactorily
completes the classroom portion of the firearms safety course but is unable to pass the
written or an alternate format exam portion of the course because of a permanent physical
disability or
developmental disability as defined in section 97B.1055, subdivision 1. The
certificate is valid only when used according to section 97B.1055.

Sec. 28.

Minnesota Statutes 2016, section 97B.081, subdivision 3, is amended to read:


Subd. 3.

Exceptions.

(a) It is not a violation of this section for a person to:

(1) cast the rays of a spotlight, headlight, or other artificial light to take raccoons
according to section 97B.621, subdivision 3, or tend traps according to section 97B.931;

(2) hunt fox or coyote from January 1 to March 15 while using a handheld an artificial
light, provided that the person is:

(i) on foot;

(ii) using a shotgun;

(iii) not within a public road right-of-way;

(iv) using a handheld or electronic calling device; and

(v) not within 200 feet of a motor vehicle; or

(3) cast the rays of a handheld artificial light to retrieve wounded or dead big game
animals, provided that the person is:

(i) on foot; and

(ii) not in possession of a firearm or bow.

(b) It is not a violation of subdivision 2 for a person to cast the rays of a spotlight,
headlight, or other artificial light to:

(1) carry out any agricultural, safety, emergency response, normal vehicle operation, or
occupation-related activities that do not involve taking wild animals; or

(2) carry out outdoor recreation as defined in section 97B.001 that is not related to
spotting, locating, or taking a wild animal.

(c) Except as otherwise provided by the game and fish laws, it is not a violation of this
section for a person to use an electronic range finder device from one-half hour before
sunrise until one-half hour after sunset while lawfully hunting wild animals.

(d) It is not a violation of this section for a licensed bear hunter to cast the rays of a
handheld artificial light to track or retrieve a wounded or dead bear while possessing a
firearm, provided that the person:

(1) has the person's valid bear-hunting license in possession;

(2) is on foot; and

(3) is following the blood trail of a bear that was shot during legal shooting hours.

Sec. 29.

Minnesota Statutes 2016, section 97B.1055, is amended to read:


97B.1055 HUNTING BY PERSONS WITH A PERMANENT PHYSICAL OR
DEVELOPMENTAL DISABILITY.

Subdivision 1.

Definitions.

For purposes of this section and section 97B.015, subdivision
6
,:

(1) "person with developmental disability" means a person who has been diagnosed as
having substantial limitations in present functioning, manifested as significantly subaverage
intellectual functioning, existing concurrently with demonstrated deficits in adaptive behavior,
and who manifests these conditions before the person's 22nd birthday.;

A (2) "person with a related condition" means a person who meets the diagnostic
definition under section 252.27, subdivision 1a.; and

(3) "person with a permanent physical disability" means a person who has a physical
disability that prevents them from being able to navigate natural terrain or hold a firearm
for the purpose of a required field component for the firearms safety training program under
section 97B.020.

Subd. 2.

Obtaining a license.

(a) Notwithstanding section 97B.020, a person with a
permanent physical disability or
developmental disability may obtain a firearms hunting
license with a provisional firearms safety certificate issued under section 97B.015,
subdivision 6
.

(b) Any person accompanying or assisting a person with a permanent physical disability
or
developmental disability under this section must possess a valid firearms safety certificate
issued by the commissioner.

Subd. 3.

Assistance required.

A person who obtains a firearms hunting license under
subdivision 2 must be accompanied and assisted by a parent, guardian, or other adult person
designated by a parent or guardian when hunting. A person who is not hunting but is solely
accompanying and assisting a person with a permanent physical disability or developmental
disability need not obtain a hunting license.

Subd. 4.

Prohibited activities.

(a) This section does not entitle a person to possess a
firearm if the person is otherwise prohibited from possessing a firearm under state or federal
law or a court order.

(b) No person shall knowingly authorize or permit a person, who by reason of a permanent
physical disability or
developmental disability is incapable of safely possessing a firearm,
to possess a firearm to hunt in the state or on any boundary water of the state.

Sec. 30.

Minnesota Statutes 2016, section 97C.345, subdivision 3a, is amended to read:


Subd. 3a.

Cast nets for gizzard shad.

(a) Cast nets may be used only to take gizzard
shad for use as bait for angling:

(1) from July 1 to November 30; and

(2) from the Minnesota River downstream of Granite Falls, Mississippi River downstream
of St. Anthony Falls, and the St. Croix River downstream of the dam at Taylors Falls,
including portions described as Minnesota-Wisconsin boundary waters in Minnesota Rules,
part 6266.0500, subpart 1, items A and B, that are listed as infested waters as allowed under
section 84D.03, subdivision 3.

(b) Cast nets used under this subdivision must be monofilament and may not exceed
seven five feet in diameter radius, and mesh size must be from three-eighths to five-eighths
inch bar measure. No more than two cast nets may be used at one time.

(c) This subdivision expires December 1, 2017. The commissioner must report to the
chairs and ranking minority members of the house of representatives and senate committees
with jurisdiction over environment and natural resources by March 1, 2018, on the number
of permits issued, conservation impacts from the use of cast nets, and recommendations for
any necessary changes in statutes or rules.

EFFECTIVE DATE.

This section is effective retroactively from December 1, 2017.

Sec. 31.

Minnesota Statutes 2016, section 103B.3369, subdivision 5, is amended to read:


Subd. 5.

Financial assistance.

A base grant, contract, or payment may be awarded to a
county or other local unit of government that provides a match utilizing a water
implementation tax or other local source. A water implementation tax that a county or other
local unit of government
intends to use as a match to the base grant must be levied at a rate
sufficient to generate a minimum amount determined by the board. The board may award
performance-based or watershed-based grants, contracts, or payments to local units of
government that are responsible for implementing elements of applicable portions of
watershed management plans, comprehensive plans, local water management plans, or
comprehensive watershed management plans, developed or amended, adopted and approved,
according to chapter 103B, 103C, or 103D. Upon request by a local government unit, the
board may also award performance-based grants to local units of government to carry out
TMDL implementation plans as provided in chapter 114D, if the TMDL implementation
plan has been incorporated into the local water management plan according to the procedures
for approving comprehensive plans, watershed management plans, local water management
plans, or comprehensive watershed management plans under chapter 103B, 103C, or 103D,
or if the TMDL implementation plan has undergone a public review process. Notwithstanding
section 16A.41, the board may award performance-based grants, contracts, or payments on
an advanced basis. The fee authorized in section 40A.152 may be used as a local match or
as a supplement to state funding to accomplish implementation of comprehensive plans,
watershed management plans, local water management plans, or comprehensive watershed
management plans under this chapter and chapter 103C or 103D.

Sec. 32.

Minnesota Statutes 2016, section 103B.3369, subdivision 9, is amended to read:


Subd. 9.

Performance-based Criteria.

(a) The board shall must develop and utilize
performance-based criteria for local water resources restoration, protection, and management
programs and projects. The criteria may include but are not limited to science-based
assessments, organizational capacity, priority resource issues, community outreach and
support, partnership potential, potential for multiple benefits, and program and project
delivery efficiency and effectiveness.

(b) Notwithstanding paragraph (a), the board may develop and utilize eligibility criteria
for base amounts of state funding to local governments.

Sec. 33.

Minnesota Statutes 2016, section 103B.3369, is amended by adding a subdivision
to read:


Subd. 10.

Red River Basin Commission.

(a) The board may provide information and
technical or financial support to the Red River Basin Commission in furtherance of the
watershed management policy under section 103A.212.

(b) For the purposes of this subdivision, "Red River Basin Commission" means a Red
River of the North transboundary, nonprofit corporation organized under section 501(c)(3)
of the Internal Revenue Code and respective bylaws with the purpose of facilitating
transboundary and basin-wide dialogue; consulting with citizens, land users, organizations,
and governments; and coordinating basin-wide interstate and international efforts on water
management including but not limited to flood mitigation, water quality, water supply,
drainage, aquatic health, and recreation.

Sec. 34.

Minnesota Statutes 2016, section 103B.801, subdivision 2, is amended to read:


Subd. 2.

Program purposes.

The purposes of the comprehensive watershed management
plan program under section 103B.101, subdivision 14, paragraph (a), are to:

(1) align local water planning purposes and procedures under this chapter and chapters
103C and 103D on watershed boundaries to create a systematic, watershed-wide,
science-based approach to watershed management;

(2) acknowledge and build off existing local government structure, water plan services,
and local capacity;

(3) incorporate and make use of data and information, including watershed restoration
and protection strategies under section 114D.26, which may serve to fulfill all or some of
the requirements under chapter 114D
;

(4) solicit input and engage experts from agencies, citizens, and stakeholder groups;

(5) focus on implementation of prioritized and targeted actions capable of achieving
measurable progress; and

(6) serve as a substitute for a comprehensive plan, local water management plan, or
watershed management plan developed or amended, approved, and adopted, according to
this chapter or chapter 103C or 103D.

Sec. 35.

Minnesota Statutes 2016, section 103B.801, subdivision 5, is amended to read:


Subd. 5.

Timelines; administration.

(a) The board shall develop and adopt, by June
30, 2016, a transition plan for development, approval, adoption, and coordination of plans
consistent with section 103A.212. The transition plan must include a goal of completing
statewide transition to comprehensive watershed management plans by 2025. The
metropolitan area may be considered for inclusion in the transition plan. The board may
amend the transition plan no more often than once every two years.

(b) The board may use the authority under section 103B.3369, subdivision 9, to support
development or implementation of a comprehensive watershed management plan under this
section.

Sec. 36.

Minnesota Statutes 2016, section 103E.021, subdivision 6, is amended to read:


Subd. 6.

Incremental implementation establishment of vegetated ditch buffer strips
and side inlet controls.

(a) Notwithstanding other provisions of this chapter requiring
appointment of viewers and redetermination of benefits and damages, a drainage authority
may implement make findings and order the establishment of permanent buffer strips of
perennial vegetation approved by the drainage authority or side inlet controls, or both,
adjacent to a public drainage ditch, where necessary to control erosion and sedimentation,
improve water quality, or maintain the efficiency of the drainage system. The drainage
authority's finding that the establishment of permanent buffer strips of perennial vegetation
or side inlet controls is necessary to control erosion and sedimentation, improve water
quality, or maintain the efficiency of the drainage system is sufficient to confer jurisdiction
under this subdivision.
Preference should be given to planting native species of a local
ecotype. The approved perennial vegetation shall not impede future maintenance of the
ditch. The permanent strips of perennial vegetation shall be 16-1/2 feet in width measured
outward from the top edge of the existing constructed channel. Drainage system rights-of-way
for the acreage and additional property required for the permanent strips must be acquired
by the authority having jurisdiction.

(b) A project under this subdivision shall be implemented as a repair according to section
103E.705, except that the drainage authority may appoint an engineer to examine the drainage
system and prepare an engineer's repair report for the project.

(c) Damages shall be determined by the drainage authority, or viewers, appointed by
the drainage authority, according to section 103E.315, subdivision 8. A damages statement
shall be prepared, including an explanation of how the damages were determined for each
property affected by the project, and filed with the auditor or watershed district. Within 30
days after the damages statement is filed, the auditor or watershed district shall prepare
property owners' reports according to section 103E.323, subdivision 1, clauses (1), (2), (6),
(7), and (8), and mail a copy of the property owner's report and damages statement to each
owner of property affected by the proposed project.

(d) After a damages statement is filed, the drainage authority shall set a time, by order,
not more than 30 days after the date of the order, for a hearing on the project. At least ten
days before the hearing, the auditor or watershed district shall give notice by mail of the
time and location of the hearing to the owners of property and political subdivisions likely
to be affected by the project.

(e) The drainage authority shall make findings and order the repairs to be made if the
drainage authority determines from the evidence presented at the hearing and by the viewers
and engineer, if appointed, that the repairs are necessary for the drainage system and the
costs of the repairs are within the limitations of section 103E.705.

Sec. 37.

Minnesota Statutes 2016, section 103E.071, is amended to read:


103E.071 COUNTY ATTORNEY.

The county attorney shall represent the county in all drainage proceedings and related
matters without special compensation, except as provided in section 388.09, subdivision 1.
A county attorney, the county attorney's assistant, or any attorney associated with the county
attorney in business, may not otherwise appear in any drainage proceeding for any interested
person.

Sec. 38.

Minnesota Statutes 2016, section 103G.2242, subdivision 14, is amended to read:


Subd. 14.

Fees established.

(a) Fees must be assessed for managing wetland bank
accounts and transactions as follows:

(1) account maintenance annual fee: one percent of the value of credits not to exceed
$500;

(2) account establishment, deposit, or transfer: 6.5 percent of the value of credits not to
exceed $1,000 per establishment, deposit, or transfer; and

(3) withdrawal fee: 6.5 percent of the value of credits withdrawn.

(b) The board may must establish fees at or based on costs to the agency below the
amounts in paragraph (a) for single-user or other dedicated wetland banking accounts.

(c) Fees for single-user or other dedicated wetland banking accounts established pursuant
to section 103G.005, subdivision 10i, clause (4), are limited to establishment of a wetland
banking account and are assessed at the rate of 6.5 percent of the value of the credits not to
exceed $1,000.

(d) The board may assess a fee to pay the costs associated with establishing conservation
easements, or other long-term protection mechanisms prescribed in the rules adopted under
subdivision 1, on property used for wetland replacement.

Sec. 39.

Minnesota Statutes 2017 Supplement, section 103G.271, subdivision 7, is amended
to read:


Subd. 7.

Transfer of permit.

A water-use permit may be transferred to a successive
owner of real property if the permittee conveys the real property where the source of water
is located. The new owner must notify the commissioner immediately after the conveyance
and request transfer of the permit. The commissioner must not deny the transfer of a permit
if the permittee is in compliance with all permit conditions and the permit meets the
requirements of sections 103G.255 to 103G.301. The commissioner may not require
additional conditions or require additional testing when transferring a permit.

Sec. 40.

[103G.276] IRRIGATION TEST WELLS.

If the commissioner requires installation of a test well for a water appropriation permit
for irrigation and denies the permit, the commissioner must pay the costs of the well.

Sec. 41.

Minnesota Statutes 2016, section 103G.287, is amended by adding a subdivision
to read:


Subd. 6.

Management plans.

(a) Before the commissioner approves a management plan
or modification to a management plan for appropriating groundwater that restricts water
usage in the area, the commissioner must demonstrate to affected permit holders that any
data used to make the decision to restrict the usage supports or verifies the decision.

(b) Before the commissioner approves a management plan or modification to a
management plan for appropriating groundwater, the commissioner must consider the
economic impact of the plan or modification.

Sec. 42.

Minnesota Statutes 2016, section 114D.15, is amended by adding a subdivision
to read:


Subd. 3a.

Comprehensive local water management plan.

"Comprehensive local water
management plan" has the meaning given under section 103B.3363, subdivision 3.

Sec. 43.

Minnesota Statutes 2016, section 114D.15, is amended by adding a subdivision
to read:


Subd. 3b.

Comprehensive watershed management plan.

"Comprehensive watershed
management plan" has the meaning given under section 103B.3363, subdivision 3a.

Sec. 44.

Minnesota Statutes 2016, section 114D.15, subdivision 7, is amended to read:


Subd. 7.

Restoration.

"Restoration" means actions, including effectiveness monitoring,
that are
taken to pursue, achieve, and maintain water quality standards for impaired waters
in accordance with a TMDL that has been approved by the United States Environmental
Protection Agency under federal TMDL requirements
.

Sec. 45.

Minnesota Statutes 2016, section 114D.15, subdivision 11, is amended to read:


Subd. 11.

TMDL implementation plan.

"TMDL implementation plan" means:

(1) a document detailing restoration activities needed to meet the approved TMDL's
pollutant load allocations for point and nonpoint sources.; or

(2) one of the following that the commissioner of the Pollution Control Agency
determines to be, in whole or part, sufficient to meet applicable water quality standards:

(i) a comprehensive watershed management plan;

(ii) a comprehensive local water management plan; or

(iii) an existing statewide or regional strategy published by the Pollution Control Agency.

Sec. 46.

Minnesota Statutes 2016, section 114D.15, subdivision 13, is amended to read:


Subd. 13.

Watershed restoration and protection strategy or WRAPS.

"Watershed
restoration and protection strategy" or "WRAPS" means a document summarizing scientific
studies of a major watershed no larger than at approximately a hydrologic unit code 8 scale
including the physical, chemical, and biological assessment of the water quality of the
watershed; identification of impairments and water bodies in need of protection; identification
of biotic stressors and sources of pollution, both point and nonpoint; TMDL's for the
impairments; and an implementation table containing information to support strategies and
actions
designed to achieve and maintain water quality standards and goals.

Sec. 47.

Minnesota Statutes 2016, section 114D.20, subdivision 2, is amended to read:


Subd. 2.

Goals for implementation.

The following goals must guide the implementation
of this chapter:

(1) to identify impaired waters in accordance with federal TMDL requirements within
ten years after May 23, 2006,
and thereafter to ensure continuing evaluation of surface
waters for impairments;

(2) to submit TMDL's to the United States Environmental Protection Agency for all
impaired waters
in a timely manner in accordance with federal TMDL requirements;

(3) to set a reasonable time inform and support strategies for implementing restoration
of each identified impaired water and protection activities in a reasonable time period;

(4) to systematically evaluate waters, to provide assistance and incentives to prevent
waters from becoming impaired, and to improve the quality of waters that are listed as
impaired but do not have an approved TMDL addressing the impairment;

(5) to promptly seek the delisting of waters from the impaired waters list when those
waters are shown to achieve the designated uses applicable to the waters;

(6) to achieve compliance with federal Clean Water Act requirements in Minnesota;

(7) to support effective measures to prevent the degradation of groundwater according
to the groundwater degradation prevention goal under section 103H.001; and

(8) to support effective measures to restore degraded groundwater.

Sec. 48.

Minnesota Statutes 2016, section 114D.20, subdivision 3, is amended to read:


Subd. 3.

Implementation policies.

The following policies must guide the implementation
of this chapter:

(1) develop regional and, multiple pollutant, or watershed TMDL's and TMDL
implementation plans, and TMDL's and TMDL implementation plans for multiple pollutants

or WRAPSs
, where reasonable and feasible;

(2) maximize use of available organizational, technical, and financial resources to perform
sampling, monitoring, and other activities to identify degraded groundwater and impaired
waters, including use of citizen monitoring and citizen monitoring data used by the Pollution
Control Agency in assessing water quality that meets the requirements in Appendix D of
the Volunteer Surface Water Monitoring Guide, Minnesota
established by the commissioner
of the
Pollution Control Agency (2003);

(3) maximize opportunities for restoration of degraded groundwater and impaired waters,
by prioritizing and targeting of available programmatic, financial, and technical resources
and by providing additional state resources to complement and leverage available resources;

(4) use existing regulatory authorities to achieve restoration for point and nonpoint
sources of pollution where applicable, and promote the development and use of effective
nonregulatory measures to address pollution sources for which regulations are not applicable;

(5) use restoration methods that have a demonstrated effectiveness in reducing
impairments and provide the greatest long-term positive impact on water quality protection
and improvement and related conservation benefits while incorporating innovative approaches
on a case-by-case basis;

(6) identify for the legislature any innovative approaches that may strengthen or
complement existing programs;

(7) identify and encourage implementation of measures to prevent surface waters from
becoming impaired and to improve the quality of waters that are listed as impaired but have
no approved TMDL addressing the impairment using the best available data and technology,
and establish and report outcome-based performance measures that monitor the progress
and effectiveness of protection and restoration measures;

(8) monitor and enforce cost-sharing contracts and impose monetary damages in an
amount up to 150 percent of the financial assistance received for failure to comply; and

(9) identify and encourage implementation of measures to prevent groundwater from
becoming degraded and measures that restore groundwater resources.

Sec. 49.

Minnesota Statutes 2016, section 114D.20, subdivision 5, is amended to read:


Subd. 5.

Priorities for preparing WRAPSs AND TMDL's.

In consultation with the
Clean Water Council shall recommend, the commissioner of the Pollution Control Agency
must coordinate with the commissioners of natural resources, health, and agriculture, the
Board of Water and Soil Resources, and, when applicable, the Minnesota Forest Resources
Council to establish
priorities for scheduling and preparing WRAPSs and TMDL's and
TMDL implementation plans, taking into account
, considering the severity and causes of
the impairment impairments, the designated uses of those the waters, and other applicable
federal TMDL requirements. In recommending priorities, the council shall also give
Consideration to
, groundwater and high-quality waters and watersheds watershed protection,
waters and watersheds with declining water quality trends, waters used as drinking water
sources, and waters and watersheds
:

(1) with impairments that pose the greatest potential risk to human health;

(2) with impairments that pose the greatest potential risk to threatened or endangered
species;

(3) with impairments that pose the greatest potential risk to aquatic health;

(4) where other public agencies and participating organizations and individuals, especially
local, basinwide basin-wide, watershed, or regional agencies or organizations, have
demonstrated readiness to assist in carrying out the responsibilities, including availability
and organization of human, technical, and financial resources necessary to undertake the
work; and

(5) where there is demonstrated coordination and cooperation among cities, counties,
watershed districts, and soil and water conservation districts in planning and implementation
of activities that will assist in carrying out the responsibilities.

Sec. 50.

Minnesota Statutes 2016, section 114D.20, subdivision 7, is amended to read:


Subd. 7.

Priorities for funding prevention actions.

The Clean Water Council shall
apply the priorities applicable under subdivision 6, as far as practicable, when recommending
priorities for funding actions to prevent groundwater and surface waters from becoming
degraded or impaired and to improve the quality of surface waters that are listed as impaired
but do not have an approved TMDL.

Sec. 51.

Minnesota Statutes 2016, section 114D.20, is amended by adding a subdivision
to read:


Subd. 8.

Alternatives; TMDL, TMDL implementation plan, or WRAPS.

(a) If the
commissioner of the Pollution Control Agency determines that a comprehensive watershed
management plan or comprehensive local water management plan contains information that
is sufficient and consistent with guidance from the United States Environmental Protection
Agency, including the recommended structure for category 4b demonstrations or its
replacement under section 303(d) of the federal Clean Water Act, the commissioner may
submit the plan to the Environmental Protection Agency according to federal TMDL
requirements as an alternative to developing a TMDL.

(b) A TMDL implementation plan or a WRAPS, or portions thereof, are not needed for
waters or watersheds when the commissioner of the Pollution Control Agency determines
that a comprehensive watershed management plan, a comprehensive local water management
plan, or a statewide or regional strategy published by the Pollution Control Agency meets
the definition in section 114D.15, subdivision 11 or 13.

(c) The commissioner of the Pollution Control Agency may request that the Board of
Water and Soil Resources conduct an evaluation of the implementation efforts under a
comprehensive watershed management plan or comprehensive local water management
plan when the commissioner makes a determination under paragraph (b). The board must
conduct the evaluation in accordance with section 103B.102.

(d) The commissioner of the Pollution Control Agency may amend or revoke a
determination made under paragraph (a) or (b) after considering the evaluation conducted
under paragraph (c).

Sec. 52.

Minnesota Statutes 2016, section 114D.20, is amended by adding a subdivision
to read:


Subd. 9.

Coordinating municipal and local water quality activities.

A project, practice,
or program for water quality improvement or protection that is conducted by a watershed
management organization or a local government unit with a comprehensive watershed
management plan or other water management plan approved according to chapter 103B,
103C, or 103D may be considered as contributing to the requirements of a storm water
pollution prevention plan (SWPPP) for a municipal separate storm sewer systems (MS4)
permit unless the project, practice, or program was previously documented as contributing
to a different SWPPP for an MS4 permit.

Sec. 53.

Minnesota Statutes 2016, section 114D.26, is amended to read:


114D.26 WATERSHED RESTORATION AND PROTECTION STRATEGIES.

Subdivision 1.

Contents.

(a) The commissioner of the Pollution Control Agency shall
must
develop watershed restoration and protection strategies. for:

(1) quantifying impairments and risks to water quality;

(2) describing the causes of impairments and pollution sources;

(3) consolidating TMDLs in a major watershed; and

(4) informing comprehensive local water management plans and comprehensive
watershed management plans.

(b) To ensure effectiveness, efficiency, and accountability in meeting the goals of this
chapter, the commissioner of the Pollution Control Agency and the Board of Water and
Soil Resources must coordinate the schedule, budget, scope, and use of a WRAPS and
related documents and processes in consultation with local government units and, when
applicable, the Minnesota Forest Resources Council in consideration of section 114D.20,
subdivision 8.
Each WRAPS shall must:

(1) identify impaired waters and waters in need of protection;

(2) identify biotic stressors causing impairments or threats to water quality;

(3) summarize watershed modeling outputs and resulting pollution load allocations, and
wasteload allocations, and priority areas for targeting actions to improve water quality and
identify areas with high pollutant-loading rates
;

(4) identify point sources of pollution for which a national pollutant discharge elimination
system permit is required under section 115.03;

(5) identify nonpoint sources of pollution for which a national pollutant discharge
elimination system permit is not required under section 115.03, with sufficient specificity
to prioritize and geographically locate inform watershed restoration and protection actions
strategies
;

(6) describe the current pollution loading and load reduction needed for each source or
source category to meet water quality standards and goals, including wasteload and load
allocations from TMDL's;

(7) contain a plan for ongoing identify water quality monitoring needed to fill data gaps,
determine changing conditions, and or gauge implementation effectiveness; and

(8) contain an implementation table of strategies and actions that are capable of
cumulatively achieving needed pollution load reductions for point and nonpoint sources,
including identifying:

(i) water quality parameters of concern;

(ii) current water quality conditions;

(iii) water quality goals and targets by parameter of concern; and

(iv) strategies and actions by parameter of concern and an example of the scale of
adoptions needed for each; with a timeline to meet the water quality restoration or protection
goals of this chapter.

(v) a timeline for achievement of water quality targets;

(vi) the governmental units with primary responsibility for implementing each watershed
restoration or protection strategy; and

(vii) a timeline and interim milestones for achievement of watershed restoration or
protection implementation actions within ten years of strategy adoption.

Subd. 2.

Reporting.

Beginning July 1, 2016, and every other year thereafter, The
commissioner of
the Pollution Control Agency must periodically report on its the agency's
Web site the progress toward implementation milestones and water quality goals for all
adopted TMDL's and, where available, WRAPS's
.

Subd. 3.

Timelines; administration.

Each year, (a) The commissioner of the Pollution
Control Agency must complete WRAPS's for at least ten percent of watershed restoration
and protection strategies for
the state's major watersheds. WRAPS shall be by June 30,
2023, unless the commissioner determines that a comprehensive watershed management
plan or comprehensive local water management plan, in whole or part, meets the definition
in section 114D.15, subdivision 11 or 13. As needed, the commissioner must update the
strategies, in whole or part, after consultation with the Board of Water and Soil Resources
and local government units.

(b) Watershed restoration and protection strategies are governed by the procedures for
approval and notice in section 114D.25, subdivisions 2 and 4, except that WRAPS the
strategies
need not be submitted to the United States Environmental Protection Agency.

Sec. 54.

Minnesota Statutes 2016, section 114D.35, subdivision 1, is amended to read:


Subdivision 1.

Public and stakeholder participation.

(a) Public agencies and private
entities involved in the implementation of implementing this chapter shall must encourage
participation by the public and stakeholders, including local citizens, landowners and, land
managers, and public and private organizations, in identifying impaired waters, in developing
TMDL's, in planning, priority setting, and implementing restoration of impaired waters, in
identifying degraded groundwater, and in protecting and restoring groundwater resources
.

(b) In particular, the commissioner of the Pollution Control Agency shall must make
reasonable efforts to provide timely information to the public and to stakeholders about
impaired waters that have been identified by the agency. The agency shall seek broad and
early public and stakeholder participation in scoping the activities necessary to develop a
TMDL, including the scientific models, methods, and approaches to be used in TMDL
development, and to implement restoration pursuant to section 114D.15, subdivision 7.
and
to inform and consult with the public and stakeholders in developing a WRAPS or TMDL.

(c) Public agencies and private entities involved in implementing restoration and
protection identified in a comprehensive watershed management plan or comprehensive
local water management plan must make efforts to inform, consult, and involve the public
and stakeholders.

(d) The commissioner of the Pollution Control Agency and the Board of Water and Soil
Resources must coordinate public and stakeholder participation in consultation with local
government units. To the extent practicable, implementation of this chapter must be
accomplished in cooperation with local, state, federal, and tribal governments and private
sector organizations.

Sec. 55.

Minnesota Statutes 2016, section 114D.35, subdivision 3, is amended to read:


Subd. 3.

Education.

The Clean Water Council shall develop strategies for informing,
educating, and encouraging the participation of citizens, stakeholders, and others regarding
the identification of impaired waters, development of TMDL's, development of TMDL
implementation plans, implementation of restoration for impaired waters, identification of
degraded groundwater, and protection and restoration of groundwater resources
this chapter.
Public agencies shall be are responsible for implementing the strategies.

Sec. 56.

Minnesota Statutes 2016, section 115.03, subdivision 1, is amended to read:


Subdivision 1.

Generally.

The agency is hereby given and charged with the following
powers and duties:

(a) to administer and enforce all laws relating to the pollution of any of the waters of
the state;

(b) to investigate the extent, character, and effect of the pollution of the waters of this
state and to gather data and information necessary or desirable in the administration or
enforcement of pollution laws, and to make such classification of the waters of the state as
it may deem advisable;

(c) to establish and alter such reasonable pollution standards for any waters of the state
in relation to the public use to which they are or may be put as it shall deem necessary for
the purposes of this chapter and, with respect to the pollution of waters of the state, chapter
116;

(d) to encourage waste treatment, including advanced waste treatment, instead of stream
low-flow augmentation for dilution purposes to control and prevent pollution;

(e) to adopt, issue, reissue, modify, deny, or revoke, enter into or enforce reasonable
orders, permits, variances, standards, rules, schedules of compliance, and stipulation
agreements, under such conditions as it may prescribe, in order to prevent, control or abate
water pollution, or for the installation or operation of disposal systems or parts thereof, or
for other equipment and facilities:

(1) requiring the discontinuance of the discharge of sewage, industrial waste or other
wastes into any waters of the state resulting in pollution in excess of the applicable pollution
standard established under this chapter;

(2) prohibiting or directing the abatement of any discharge of sewage, industrial waste,
or other wastes, into any waters of the state or the deposit thereof or the discharge into any
municipal disposal system where the same is likely to get into any waters of the state in
violation of this chapter and, with respect to the pollution of waters of the state, chapter
116, or standards or rules promulgated or permits issued pursuant thereto, and specifying
the schedule of compliance within which such prohibition or abatement must be
accomplished;

(3) prohibiting the storage of any liquid or solid substance or other pollutant in a manner
which does not reasonably assure proper retention against entry into any waters of the state
that would be likely to pollute any waters of the state;

(4) requiring the construction, installation, maintenance, and operation by any person
of any disposal system or any part thereof, or other equipment and facilities, or the
reconstruction, alteration, or enlargement of its existing disposal system or any part thereof,
or the adoption of other remedial measures to prevent, control or abate any discharge or
deposit of sewage, industrial waste or other wastes by any person;

(5) establishing, and from time to time revising, standards of performance for new sources
taking into consideration, among other things, classes, types, sizes, and categories of sources,
processes, pollution control technology, cost of achieving such effluent reduction, and any
nonwater quality environmental impact and energy requirements. Said standards of
performance for new sources shall encompass those standards for the control of the discharge
of pollutants which reflect the greatest degree of effluent reduction which the agency
determines to be achievable through application of the best available demonstrated control
technology, processes, operating methods, or other alternatives, including, where practicable,
a standard permitting no discharge of pollutants. New sources shall encompass buildings,
structures, facilities, or installations from which there is or may be the discharge of pollutants,
the construction of which is commenced after the publication by the agency of proposed
rules prescribing a standard of performance which will be applicable to such source.
Notwithstanding any other provision of the law of this state, any point source the construction
of which is commenced after May 20, 1973, and which is so constructed as to meet all
applicable standards of performance for new sources shall, consistent with and subject to
the provisions of section 306(d) of the Amendments of 1972 to the Federal Water Pollution
Control Act, not be subject to any more stringent standard of performance for new sources
during a ten-year period beginning on the date of completion of such construction or during
the period of depreciation or amortization of such facility for the purposes of section 167
or 169, or both, of the Federal Internal Revenue Code of 1954, whichever period ends first.
Construction shall encompass any placement, assembly, or installation of facilities or
equipment, including contractual obligations to purchase such facilities or equipment, at
the premises where such equipment will be used, including preparation work at such
premises;

(6) establishing and revising pretreatment standards to prevent or abate the discharge of
any pollutant into any publicly owned disposal system, which pollutant interferes with,
passes through, or otherwise is incompatible with such disposal system;

(7) requiring the owner or operator of any disposal system or any point source to establish
and maintain such records, make such reports, install, use, and maintain such monitoring
equipment or methods, including where appropriate biological monitoring methods, sample
such effluents in accordance with such methods, at such locations, at such intervals, and in
such a manner as the agency shall prescribe, and providing such other information as the
agency may reasonably require;

(8) notwithstanding any other provision of this chapter, and with respect to the pollution
of waters of the state, chapter 116, requiring the achievement of more stringent limitations
than otherwise imposed by effluent limitations in order to meet any applicable water quality
standard by establishing new effluent limitations, based upon section 115.01, subdivision
13
, clause (b), including alternative effluent control strategies for any point source or group
of point sources to insure the integrity of water quality classifications, whenever the agency
determines that discharges of pollutants from such point source or sources, with the
application of effluent limitations required to comply with any standard of best available
technology, would interfere with the attainment or maintenance of the water quality
classification in a specific portion of the waters of the state. Prior to establishment of any
such effluent limitation, the agency shall hold a public hearing to determine the relationship
of the economic and social costs of achieving such limitation or limitations, including any
economic or social dislocation in the affected community or communities, to the social and
economic benefits to be obtained and to determine whether or not such effluent limitation
can be implemented with available technology or other alternative control strategies. If a
person affected by such limitation demonstrates at such hearing that, whether or not such
technology or other alternative control strategies are available, there is no reasonable
relationship between the economic and social costs and the benefits to be obtained, such
limitation shall not become effective and shall be adjusted as it applies to such person;

(9) modifying, in its discretion, any requirement or limitation based upon best available
technology with respect to any point source for which a permit application is filed after July
1, 1977, upon a showing by the owner or operator of such point source satisfactory to the
agency that such modified requirements will represent the maximum use of technology
within the economic capability of the owner or operator and will result in reasonable further
progress toward the elimination of the discharge of pollutants; and

(10) requiring that applicants for wastewater discharge permits evaluate in their
applications the potential reuses of the discharged wastewater;

(f) to require to be submitted and to approve plans and specifications for disposal systems
or point sources, or any part thereof and to inspect the construction thereof for compliance
with the approved plans and specifications thereof;

(g) to prescribe and alter rules, not inconsistent with law, for the conduct of the agency
and other matters within the scope of the powers granted to and imposed upon it by this
chapter and, with respect to pollution of waters of the state, in chapter 116, provided that
every rule affecting any other department or agency of the state or any person other than a
member or employee of the agency shall be filed with the secretary of state;

(h) to conduct such investigations, issue such notices, public and otherwise, and hold
such hearings as are necessary or which it may deem advisable for the discharge of its duties
under this chapter and, with respect to the pollution of waters of the state, under chapter
116, including, but not limited to, the issuance of permits, and to authorize any member,
employee, or agent appointed by it to conduct such investigations or, issue such notices and
hold such hearings;

(i) for the purpose of water pollution control planning by the state and pursuant to the
Federal Water Pollution Control Act, as amended, to establish and revise planning areas,
adopt plans and programs and continuing planning processes, including, but not limited to,
basin plans and areawide waste treatment management plans, and to provide for the
implementation of any such plans by means of, including, but not limited to, standards, plan
elements, procedures for revision, intergovernmental cooperation, residual treatment process
waste controls, and needs inventory and ranking for construction of disposal systems;

(j) to train water pollution control personnel, and charge such fees therefor as are
necessary to cover the agency's costs. The fees under this paragraph are subject to legislative
approval under section 16A.1283.
All such fees received shall be paid into the state treasury
and credited to the Pollution Control Agency training account;

(k) to impose as additional conditions in permits to publicly owned disposal systems
appropriate measures to insure compliance by industrial and other users with any pretreatment
standard, including, but not limited to, those related to toxic pollutants, and any system of
user charges ratably as is hereby required under state law or said Federal Water Pollution
Control Act, as amended, or any regulations or guidelines promulgated thereunder;

(l) to set a period not to exceed five years for the duration of any national pollutant
discharge elimination system permit or not to exceed ten years for any permit issued as a
state disposal system permit only;

(m) to require each governmental subdivision identified as a permittee for a wastewater
treatment works to evaluate in every odd-numbered year the condition of its existing system
and identify future capital improvements that will be needed to attain or maintain compliance
with a national pollutant discharge elimination system or state disposal system permit; and

(n) to train subsurface sewage treatment system personnel, including persons who design,
construct, install, inspect, service, and operate subsurface sewage treatment systems, and
charge fees as necessary to pay the agency's costs. The fees under this paragraph are subject
to legislative approval under section 16A.1283.
All fees received must be paid into the state
treasury and credited to the agency's training account. Money in the account is appropriated
to the agency to pay expenses related to training.

The information required in clause (m) must be submitted in every odd-numbered year to
the commissioner on a form provided by the commissioner. The commissioner shall provide
technical assistance if requested by the governmental subdivision.

The powers and duties given the agency in this subdivision also apply to permits issued
under chapter 114C.

Sec. 57.

Minnesota Statutes 2016, section 115.03, subdivision 5, is amended to read:


Subd. 5.

Agency authority; national pollutant discharge elimination system.

(a)
Notwithstanding any other provisions prescribed in or pursuant to this chapter and, with
respect to the pollution of waters of the state, in chapter 116, or otherwise, the agency shall
have the authority to perform any and all acts minimally necessary including, but not limited
to, the establishment and application of standards, procedures, rules, orders, variances,
stipulation agreements, schedules of compliance, and permit conditions, consistent with
and, therefore not less stringent than the provisions of the Federal Water Pollution Control
Act, as amended, applicable to the participation by the state of Minnesota in the national
pollutant discharge elimination system (NPDES); provided that this provision shall not be
construed as a limitation on any powers or duties otherwise residing with the agency pursuant
to any provision of law.

(b) An activity that conveys or connects waters of the state without subjecting the
transferred water to intervening industrial, municipal, or commercial use does not require
a national pollutant discharge elimination system permit. This exemption does not apply to
pollutants introduced by the activity itself to the water being transferred.

Sec. 58.

Minnesota Statutes 2016, section 115.035, is amended to read:


115.035 EXTERNAL PEER REVIEW OF WATER QUALITY STANDARDS.

(a) When the commissioner convenes an external peer review panel during the
promulgation or amendment of water quality standards, the commissioner must provide
notice and take public comment on the charge questions for the external peer review panel
and must allow written and oral public comment as part of the external peer review panel
process.
Every new or revised numeric water quality standard must be supported by a
technical support document that provides the scientific basis for the proposed standard and
that has undergone external, scientific peer review. Numeric water quality standards in
which the agency is adopting, without change, a United States Environmental Protection
Agency criterion that has been through peer review are not subject to this paragraph.

Documentation of the external peer review panel, including the name or names of the peer
reviewer or reviewers, must be included in the statement of need and reasonableness for
the water quality standard. If the commissioner does not convene an external peer review
panel during the promulgation or amendment of water quality standards, the commissioner
must state the reason an external peer review panel will not be convened in the statement
of need and reasonableness.

(b) Every technical support document developed by the agency must be released in draft
form for public comment before peer review and before finalizing the technical support
document.

(c) The commissioner must provide public notice and information about the external
peer review through the request for comments published at the beginning of the rulemaking
process for the numeric water quality standard, and:

(1) the request for comments must identify the draft technical support document and
where the document can be found;

(2) the request for comments must include a proposed charge for the external peer review
and request comments on the charge;

(3) all comments received during the public comment period must be made available to
the external peer reviewers; and

(4) if the agency is not soliciting external peer review because the agency is adopting a
United States Environmental Protection Agency criterion without change, that must be
noted in the request for comments.

(d) The purpose of the external peer review is to evaluate whether the technical support
document and proposed standard are based on sound scientific knowledge, methods, and
practices. The external peer review must be conducted according to the guidance in the
most recent edition of the United States Environmental Protection Agency's Peer Review
Handbook. Peer reviewers must not have participated in developing the scientific basis of
the standard.

(e) The type of review and the number of peer reviewers depends on the nature of the
science underlying the standard. When the agency is developing significant new science or
science that expands significantly beyond current documented scientific practices or
principles, a panel review must be used.

(f) In response to the findings of the external peer review, the draft technical support
document must be revised as appropriate. The findings of the external peer review must be
documented and attached to the final technical support document, which must be an exhibit
as part of the statement of need and reasonableness in the rulemaking to adopt the new or
revised numeric water quality standard. The final technical support document must note
changes made in response to the external peer review.

(b) (g) By December 15 each year, the commissioner shall post on the agency's Web
site a report identifying the water quality standards development work in progress or
completed in the past year, the lead agency scientist for each development effort, and
opportunities for public input.

Sec. 59.

[115.455] EFFLUENT LIMITATIONS; COMPLIANCE.

To the extent allowable under federal law, for a municipality that constructs a publicly
owned treatment works facility or for an industrial national pollutant discharge elimination
system and state disposal system permit holder that constructs a treatment works facility to
comply with a new or modified effluent limitation, compliance with any new or modified
effluent limitation adopted after construction begins that would require additional capital
investment is required no sooner than 16 years after the date the facility begins operating.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 60.

Minnesota Statutes 2016, section 115.77, subdivision 1, is amended to read:


Subdivision 1.

Fees.

The agency shall collect fees in amounts necessary, but no greater
than the amounts necessary, to cover the reasonable costs of reviewing applications and
issuing certifications. The fees under this subdivision are subject to legislative approval
under section 16A.1283.

Sec. 61.

Minnesota Statutes 2016, section 115.84, subdivision 2, is amended to read:


Subd. 2.

Rules.

The agency may adopt rules to govern certification of laboratories
according to this section. Notwithstanding section 16A.1283, the agency may adopt rules
establishing fees.

Sec. 62.

Minnesota Statutes 2016, section 115.84, subdivision 3, is amended to read:


Subd. 3.

Fees.

(a) Until the agency adopts a rule establishing fees for certification, the
agency shall collect fees from laboratories registering with the agency, but not accredited
by the commissioner of health under sections 144.97 to 144.99, in amounts necessary to
cover the reasonable costs of the certification program, including reviewing applications,
issuing certifications, and conducting audits and compliance assistance. The fees under this
paragraph are subject to legislative approval under section 16A.1283.

(b) Fees under this section must be based on the number, type, and complexity of
analytical methods that laboratories are certified to perform.

(c) Revenue from fees charged by the agency for certification shall be credited to the
environmental fund.

Sec. 63.

Minnesota Statutes 2016, section 115A.51, is amended to read:


115A.51 APPLICATION REQUIREMENTS.

(a) Applications for assistance under the program shall must demonstrate:

(a) (1) that the project is conceptually and technically feasible;

(b) (2) that affected political subdivisions are committed to implement the project, to
provide necessary local financing, and to accept and exercise the government powers
necessary to the project;

(c) (3) that operating revenues from the project, considering the availability and security
of sources of solid waste and of markets for recovered resources, together with any proposed
federal, state, or local financial assistance, will be sufficient to pay all costs over the projected
life of the project;

(d) (4) that the applicant has evaluated the feasible and prudent alternatives to disposal,
including the use of existing solid waste management facilities with reasonably available
capacity sufficient to accomplish the goals of the proposed project
and has compared and
evaluated the costs of the alternatives, including capital and operating costs, and the effects
of the alternatives on the cost to generators.;

(5) that the applicant has identified waste management objectives in applicable county
and regional solid waste management plans consistent with sections 115A.46, subdivision
2, paragraphs (e) and (f), and 473.149, subdivision 1, and other solid waste facilities identified
in the county and regional plans; and

(6) that the applicant has conducted a comparative analysis of the project against existing
public and private solid waste facilities, including an analysis of potential displacement of
facilities to determine whether the project is the most appropriate alternative to achieve the
identified waste management objectives that considers:

(i) conformity with approved county or regional solid waste management plans;

(ii) consistency with the state's solid waste hierarchy and sections 115A.46, subdivision
2, paragraphs (e) and (f), and 473.149, subdivisions 1; and

(iii) environmental standards related to public health, air, surface water, and groundwater.

(b) The commissioner may require completion of a comprehensive solid waste
management plan conforming to the requirements of section 115A.46, before accepting an
application. Within five days of filing an application with the agency, the applicant must
submit a copy of the application to each solid waste management facility mentioned in the
portion of the application addressing the requirements of paragraph (a), clauses (5) and (6).

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 64.

Minnesota Statutes 2016, section 115A.94, subdivision 2, is amended to read:


Subd. 2.

Local authority.

A city or town may organize collection, after public notification
and hearing as required in subdivisions 4a to 4d 4f. A county may organize collection as
provided in subdivision 5. A city or town that has organized collection as of May 1, 2013,
is exempt from subdivisions 4a to 4d 4f.

EFFECTIVE DATE.

This section is effective January 1, 2019, and applies to organized
collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after
that date.

Sec. 65.

Minnesota Statutes 2016, section 115A.94, subdivision 4a, is amended to read:


Subd. 4a.

Committee establishment.

(a) Before implementing an ordinance, franchise,
license, contract, or other means of organizing collection, a city or town, by resolution of
the governing body, must establish an organized a solid waste collection options committee
to identify, examine, and evaluate various methods of organized solid waste collection. The
governing body shall appoint the committee members.

(b) The organized solid waste collection options committee is subject to chapter 13D.

EFFECTIVE DATE.

This section is effective January 1, 2019, and applies to organized
collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after
that date.

Sec. 66.

Minnesota Statutes 2016, section 115A.94, subdivision 4b, is amended to read:


Subd. 4b.

Committee duties.

The committee established under subdivision 4a shall:

(1) determine which methods of organized solid waste collection to examine, which
must include:

(i) the existing system of collection;

(i) (ii) a system in which a single collector collects solid waste from all sections of a
city or town; and

(ii) (iii) a system in which multiple collectors, either singly or as members of an
organization of collectors, collect solid waste from different sections of a city or town;

(2) establish a list of criteria on which the organized solid waste collection methods
selected for examination will be evaluated, which may include: costs to residential
subscribers, impacts on residential subscribers' ability to choose a provider of solid waste
service based on the desired level of service, costs and other factors, the impact of
miles
driven by collection vehicles on city streets and alleys and the incremental impact of miles
driven by collection vehicles
, initial and operating costs to the city of implementing the
organized solid waste collection system, providing incentives for waste reduction, impacts
on solid waste collectors, and other physical, economic, fiscal, social, environmental, and
aesthetic impacts;

(3) collect information regarding the operation and efficacy of existing methods of
organized solid waste collection in other cities and towns;

(4) seek input from, at a minimum:

(i) the governing body of the city or town;

(ii) the local official of the city or town responsible for solid waste issues;

(iii) persons currently licensed to operate solid waste collection and recycling services
in the city or town; and

(iv) residents of the city or town who currently pay for residential solid waste collection
services; and

(5) issue a report on the committee's research, findings, and any recommendations to
the governing body of the city or town.

EFFECTIVE DATE.

This section is effective January 1, 2019, and applies to organized
collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after
that date.

Sec. 67.

Minnesota Statutes 2016, section 115A.94, subdivision 4c, is amended to read:


Subd. 4c.

Governing body; implementation.

The governing body of the city or town
shall consider the report and recommendations of the organized solid waste collection
options committee. The governing body must provide public notice and hold at least one
public hearing before deciding whether to implement organized collection. Organized
collection may begin no sooner than six months after the effective date of the decision of
the governing body of the city or town to implement organized collection.

EFFECTIVE DATE.

This section is effective January 1, 2019, and applies to organized
collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after
that date.

Sec. 68.

Minnesota Statutes 2016, section 115A.94, subdivision 4d, is amended to read:


Subd. 4d.

Participating collectors proposal requirement.

Prior to Before establishing
a committee under subdivision 4a to consider organizing residential solid waste collection,
a city or town with more than one licensed collector must notify the public and all licensed
collectors in the community. The city or town must provide a 60-day period of at least 60
days
in which meetings and negotiations shall occur exclusively between licensed collectors
and the city or town to develop a proposal in which interested licensed collectors, as members
of an organization of collectors, collect solid waste from designated sections of the city or
town. The proposal shall include identified city or town priorities, including issues related
to zone creation, traffic, safety, environmental performance, service provided, and price,
and shall reflect existing haulers maintaining their respective market share of business as
determined by each hauler's average customer count during the six months prior to the
commencement of the 60-day exclusive negotiation period. If an existing hauler opts to be
excluded from the proposal, the city may allocate their customers proportionally based on
market share to the participating collectors who choose to negotiate. The initial organized
collection agreement executed under this subdivision must be for a period of three to seven
years. Upon execution of an agreement between the participating licensed collectors and
city or town, the city or town shall establish organized collection through appropriate local
controls and is not required to fulfill the requirements of subdivisions 4a, 4b, and 4c, except
that the governing body must provide the public notification and hearing required under
subdivision 4c.

EFFECTIVE DATE.

This section is effective January 1, 2019, and applies to organized
collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after
that date.

Sec. 69.

Minnesota Statutes 2016, section 115A.94, is amended by adding a subdivision
to read:


Subd. 4e.

Parties to meet and confer.

Before the exclusive meetings and negotiations
under subdivision 4d, participating licensed collectors and elected officials of the city or
town must meet and confer regarding waste collection issues, including but not limited to
road deterioration, public safety, pricing mechanisms, and contractual considerations unique
to organized collection.

EFFECTIVE DATE.

This section is effective January 1, 2019, and applies to organized
collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after
that date.

Sec. 70.

Minnesota Statutes 2016, section 115A.94, is amended by adding a subdivision
to read:


Subd. 4f.

Joint liability limited.

Notwithstanding section 604.02, an organized collection
agreement must not obligate a participating licensed collector for damages to third parties
solely caused by another participating licensed collector. The organized collection agreement
may include joint obligations for actions that are undertaken by all the participating licensed
collectors under this section.

EFFECTIVE DATE.

This section is effective January 1, 2019, and applies to organized
collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after
that date.

Sec. 71.

Minnesota Statutes 2016, section 115A.94, subdivision 5, is amended to read:


Subd. 5.

County organized collection.

(a) A county may by ordinance require cities
and towns within the county to organize collection. Organized collection ordinances of
counties may:

(1) require cities and towns to require the separation and separate collection of recyclable
materials;

(2) specify the material to be separated; and

(3) require cities and towns to meet any performance standards for source separation
that are contained in the county solid waste plan.

(b) A county may itself organize collection under subdivisions 4a to 4d 4f in any city
or town that does not comply with a county organized collection ordinance adopted under
this subdivision, and the county may implement, as part of its organized collection, the
source separation program and performance standards required by its organized collection
ordinance.

EFFECTIVE DATE.

This section is effective January 1, 2019, and applies to organized
collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after
that date.

Sec. 72.

[115B.171] TESTING FOR PRIVATE WELLS; EAST METROPOLITAN
AREA.

Subdivision 1.

Definitions.

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

(b) "East metropolitan area" means:

(1) the cities of Afton, Cottage Grove, Lake Elmo, Newport, Oakdale, St. Paul Park,
and Woodbury;

(2) the townships of Denmark, Grey Cloud Island, and Lakeland; and

(3) other areas added by the commissioner that have a potential for significant
groundwater pollution from PFCs.

(c) "PFCs" means per- and poly-fluorinated chemicals.

Subd. 2.

Testing required for private wells.

At the request of the owner or occupier
of land in the east metropolitan area containing a private well for water, the commissioner
must use money in the remediation fund under section 116.155 to provide timely testing
for PFCs for the well if the commissioner has not previously tested the well for PFCs. If
the test of the private well measures a contamination at or above 50 percent of a health-based
advisory value or health risk limit for PFCs, the commissioner must provide for additional
well tests based on a schedule to ensure that the groundwater is safe for consumption.

Subd. 3.

Test reporting.

(a) By January 15 each year, the commissioner must report to
each community in the east metropolitan area a summary of the results of the testing for
private wells in the community. The report must include information on the number of wells
tested and trends of PFC contamination in private wells in the community. Reports to
communities under this section must also be published on the agency's Web site.

(b) By January 15 each year, the commissioner must report to the legislature, as provided
in section 3.195, on the testing for private wells conducted in the east metropolitan area,
including copies of the community reports required in paragraph (a), the number of requests
for well testing in each community, and the total amount spent for testing private wells in
each community.

Sec. 73.

[115B.172] NATURAL RESOURCES DAMAGES ACCOUNT.

Subdivision 1.

Establishment.

The natural resources damages account is established as
an account in the remediation fund.

Subd. 2.

Revenues.

The account consists of money from the following sources:

(1) revenues from actions taken by the attorney general on behalf of the commissioner
of the Pollution Control Agency and commissioner of natural resources under section
115B.17, subdivisions 6 and 7, unless otherwise specified by the attorney general or
settlement agreement;

(2) appropriations and transfers to the account as provided by law;

(3) interest earned on the account; and

(4) money received by the commissioner of the Pollution Control Agency or the
commissioner of natural resources for deposit in the account in the form of a gift or a grant.

Subd. 3.

Expenditures.

(a) Money in the account is appropriated to the commissioner
of natural resources for the purposes authorized in section 115B.20, subdivision 2, clause
(4).

(b) The commissioner of management and budget must allocate the amounts available
in any biennium to the commissioner of natural resources for the purposes of this section
based upon work plans submitted by the commissioner of natural resources and may adjust
those allocations upon submittal of revised work plans. Copies of the work plans must be
submitted to the chairs of the house of representatives and senate committees and divisions
having jurisdiction over environment and natural resources finance.

Subd. 4.

Report.

By November 1 each year, the commissioner of natural resources must
submit a report to the chairs and ranking minority members of the house of representatives
and senate committees and divisions with jurisdiction over environment and natural resources
policy and finance on expenditures from the natural resources damages account during the
previous fiscal year.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 74.

[115B.52] WATER QUALITY AND SUSTAINABILITY ACCOUNT.

Subdivision 1.

Definition.

For purposes of this section and section 115B.53, the term
"settlement" means the agreement and order entered on February 20, 2018, settling litigation
commenced by the state against the 3M Company under section 115B.17, subdivision 7.

Subd. 2.

Establishment.

The water quality and sustainability account is established as
an account in the remediation fund. The account consists of revenue deposited in the account
under the terms of the settlement and earnings on the investment of money in the account.
Money in the account may be invested through the State Board of Investment to ensure
sufficient clean drinking water supplies are available to residents and businesses in the east
metropolitan area to meet their current and future water needs.

Subd. 3.

Priorities.

The commissioners of the Pollution Control Agency and natural
resources must give priority to projects that:

(1) ensure clean drinking water in sufficient supply to residents and businesses in the
east metropolitan area to meet their current and future water needs, with priority given to
projects that address drinking water supplies where health-based values or health risk limits
for perfluorinated and polyfluorinated chemicals have been exceeded; and

(2) provide water treatment and groundwater recharge to enhance existing municipal
water supplies and provide connections to municipal drinking water supplies.

Subd. 4.

Expenditures.

(a) Money in the account is appropriated to the commissioner
of the Pollution Control Agency and to the commissioner of natural resources for the purposes
authorized under the settlement.

(b) The commissioners must ensure that money in the account is spent:

(1) to enhance the quality, quantity, and sustainability of the drinking water in the east
metropolitan area, which includes but is not limited to, the cities of Woodbury, Oakdale,
Lake Elmo, Cottage Grove, St. Paul Park, Afton, and Newport and the townships of West
Lakeland and Grey Cloud Island;

(2) only on projects that are technically feasible; and

(3) in a manner that ensures the priorities identified under subdivision 3 are met and that
money in the account is sufficient for the long-term operation and maintenance of projects
meeting the priority established under subdivision 3, clause (1), including ensuring there
are adequate reserves.

Subd. 5.

Limitations.

No more than eight percent of the money in the account may be
spent on state and local administrative expenses and no more than ten percent may be spent
on studies.

Subd. 6.

Reporting.

The commissioner of the Pollution Control Agency and the
commissioner of natural resources must jointly submit:

(1) by March 1 and November 1 each year, a biannual report to the chairs and ranking
minority members of the legislative policy and finance committees with jurisdiction over
environment and natural resources on expenditures from the water quality and sustainability
account during the previous six months; and

(2) by November 1 each year, a report to the legislature on expenditures from the water
quality and sustainability account during the previous fiscal year and a spending plan for
anticipated expenditures from the account during the current fiscal year.

Subd. 7.

State authority.

Nothing in this section grants authority to the commissioner
of the Pollution Control Agency or commissioner of natural resources to assume control or
otherwise operate existing municipal water supply operations in the east metropolitan area.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 75.

[115B.53] WATER QUALITY AND SUSTAINABILITY STAKEHOLDERS.

The commissioner of the Pollution Control Agency and the commissioner of natural
resources must work with stakeholders to identify and recommend projects to receive funding
from the water quality and sustainability account under the settlement. Stakeholders include,
at a minimum, representatives of the agency, the Department of Natural Resources, east
metropolitan area municipalities, and the 3M Company. The commissioners must establish
a process to solicit and evaluate the recommendations from each of the cities of Woodbury,
Oakdale, Lake Elmo, Cottage Grove, St. Paul Park, Afton, and Newport and the townships
of West Lakeland and Grey Cloud Island.

Sec. 76.

Minnesota Statutes 2016, section 116.07, is amended by adding a subdivision to
read:


Subd. 2c.

Exemption from standards for temporary storage facilities subject to
control.

(a) A temporary storage facility located at a commodity facility that is required to
be controlled under Minnesota Rules, part 7011.1005, subpart 3, is not subject to Minnesota
Rules, parts 7011.1000 to 7011.1015. For all portable equipment and fugitive dust emissions
directly associated with the temporary storage facility, it is determined that there is no
applicable specific standard of performance.

(b) For the purposes of this subdivision, the following terms have the meanings given
them:

(1) "temporary storage facility" means a facility storing grain that:

(i) uses an asphalt, concrete, or comparable base material;

(ii) has rigid, self-supporting sidewalls;

(iii) provides adequate aeration; and

(iv) provides an acceptable covering; and

(2) "portable equipment" means equipment that is not fixed at any one spot and can be
moved, including but not limited to portable receiving pits, portable augers and conveyors,
and portable reclaim equipment directly associated with the temporary storage facility.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 77.

Minnesota Statutes 2017 Supplement, section 116.07, subdivision 4d, is amended
to read:


Subd. 4d.

Permit fees.

(a) The agency may collect permit fees in amounts not greater
than those necessary to cover the reasonable costs of developing, reviewing, and acting
upon applications for agency permits and implementing and enforcing the conditions of the
permits pursuant to agency rules. Permit fees shall not include the costs of litigation. The
fee schedule must reflect reasonable and routine direct and indirect costs associated with
permitting, implementation, and enforcement. The agency may impose an additional
enforcement fee to be collected for a period of up to two years to cover the reasonable costs
of implementing and enforcing the conditions of a permit under the rules of the agency.
Water fees under this paragraph are subject to legislative approval under section 16A.1283.
Any money collected under this paragraph shall be deposited in the environmental fund.

(b) Notwithstanding paragraph (a), the agency shall collect an annual fee from the owner
or operator of all stationary sources, emission facilities, emissions units, air contaminant
treatment facilities, treatment facilities, potential air contaminant storage facilities, or storage
facilities subject to a notification, permit, or license requirement under this chapter,
subchapters I and V of the federal Clean Air Act, United States Code, title 42, section 7401
et seq., or rules adopted thereunder. The annual fee shall be used to pay for all direct and
indirect reasonable costs, including legal costs, required to develop and administer the
notification, permit, or license program requirements of this chapter, subchapters I and V
of the federal Clean Air Act, United States Code, title 42, section 7401 et seq., or rules
adopted thereunder. Those costs include the reasonable costs of reviewing and acting upon
an application for a permit; implementing and enforcing statutes, rules, and the terms and
conditions of a permit; emissions, ambient, and deposition monitoring; preparing generally
applicable regulations; responding to federal guidance; modeling, analyses, and
demonstrations; preparing inventories and tracking emissions; and providing information
to the public about these activities.

(c) The agency shall set fees that:

(1) will result in the collection, in the aggregate, from the sources listed in paragraph
(b), of an amount not less than $25 per ton of each volatile organic compound; pollutant
regulated under United States Code, title 42, section 7411 or 7412 (section 111 or 112 of
the federal Clean Air Act); and each pollutant, except carbon monoxide, for which a national
primary ambient air quality standard has been promulgated;

(2) may result in the collection, in the aggregate, from the sources listed in paragraph
(b), of an amount not less than $25 per ton of each pollutant not listed in clause (1) that is
regulated under this chapter or air quality rules adopted under this chapter; and

(3) shall collect, in the aggregate, from the sources listed in paragraph (b), the amount
needed to match grant funds received by the state under United States Code, title 42, section
7405 (section 105 of the federal Clean Air Act).

The agency must not include in the calculation of the aggregate amount to be collected
under clauses (1) and (2) any amount in excess of 4,000 tons per year of each air pollutant
from a source. The increase in air permit fees to match federal grant funds shall be a surcharge
on existing fees. The commissioner may not collect the surcharge after the grant funds
become unavailable. In addition, the commissioner shall use nonfee funds to the extent
practical to match the grant funds so that the fee surcharge is minimized.

(d) To cover the reasonable costs described in paragraph (b), the agency shall provide
in the rules promulgated under paragraph (c) for an increase in the fee collected in each
year by the percentage, if any, by which the Consumer Price Index for the most recent
calendar year ending before the beginning of the year the fee is collected exceeds the
Consumer Price Index for the calendar year 1989. For purposes of this paragraph the
Consumer Price Index for any calendar year is the average of the Consumer Price Index for
all-urban consumers published by the United States Department of Labor, as of the close
of the 12-month period ending on August 31 of each calendar year. The revision of the
Consumer Price Index that is most consistent with the Consumer Price Index for calendar
year 1989 shall be used.

(e) Any money collected under paragraphs (b) to (d) must be deposited in the
environmental fund and must be used solely for the activities listed in paragraph (b).

(f) Permit applicants who wish to construct, reconstruct, or modify a project may offer
to reimburse the agency for the costs of staff time or consultant services needed to expedite
the preapplication process and permit development process through the final decision on
the permit, including the analysis of environmental review documents. The reimbursement
shall be in addition to permit application fees imposed by law. When the agency determines
that it needs additional resources to develop the permit application in an expedited manner,
and that expediting the development is consistent with permitting program priorities, the
agency may accept the reimbursement. The commissioner must give the applicant an estimate
of costs to be incurred by the commissioner. The estimate must include a brief description
of the tasks to be performed, a schedule for completing the tasks, and the estimated cost for
each task. The applicant and the commissioner must enter into a written agreement detailing
the estimated costs for the expedited permit decision-making process to be incurred by the
agency. The agreement must also identify staff anticipated to be assigned to the project.
The commissioner must not issue a permit until the applicant has paid all fees in full. The
commissioner must refund any unobligated balance of fees paid. Reimbursements accepted
by the agency are appropriated to the agency for the purpose of developing the permit or
analyzing environmental review documents. Reimbursement by a permit applicant shall
precede and not be contingent upon issuance of a permit; shall not affect the agency's decision
on whether to issue or deny a permit, what conditions are included in a permit, or the
application of state and federal statutes and rules governing permit determinations; and shall
not affect final decisions regarding environmental review.

(g) The fees under this subdivision are exempt from section 16A.1285.

Sec. 78.

Minnesota Statutes 2017 Supplement, section 116.0714, is amended to read:


116.0714 NEW OPEN-AIR SWINE BASINS.

(a) The commissioner of the Pollution Control Agency or a county board shall not
approve any permits for the construction of new open-air swine basins, except that existing
facilities may use one basin of less than 1,000,000 gallons as part of a permitted waste
treatment program for resolving pollution problems or to allow conversion of an existing
basin of less than 1,000,000 gallons to a different animal type, provided all standards are
met. This section expires June 30, 2022.

(b) This section does not apply to a storage basin for effluent basins used solely for
wastewater from a truck-washing facility.

Sec. 79.

Minnesota Statutes 2016, section 116.155, subdivision 1, is amended to read:


Subdivision 1.

Creation.

The remediation fund is created as a special revenue fund in
the state treasury to provide a reliable source of public money for response and corrective
actions to address releases of hazardous substances, pollutants or contaminants, agricultural
chemicals, and petroleum, and for environmental response actions at qualified landfill
facilities for which the agency has assumed such responsibility, including perpetual care of
such facilities. The specific purposes for which the general portion of the fund may be spent
are provided in subdivision 2. In addition to the general portion of the fund, the fund contains
two four accounts described in subdivisions 4 and 5 to 5b.

Sec. 80.

Minnesota Statutes 2016, section 116.155, is amended by adding a subdivision
to read:


Subd. 5a.

Water quality and sustainability account.

The water quality and sustainability
account is as described in section 115B.52.

Sec. 81.

Minnesota Statutes 2016, section 116.155, is amended by adding a subdivision
to read:


Subd. 5b.

Natural resources damages account.

The natural resources damages account
is as described in section 115B.172.

Sec. 82.

[116.2025] DEICER APPLICATORS; VOLUNTARY CERTIFICATION
PROGRAM.

Subdivision 1.

Definitions.

For the purpose of this section, the following terms have
the meanings given:

(1) "certified commercial applicator" means an individual who applies deicer and has
completed training approved by the commissioner on removing snow and ice and applying
deicer and passed an examination after completing the training;

(2) "commercial applicator" means an individual or a company and its employees that
apply deicer for hire, but does not include a municipal, state, or other government employee;

(3) "deicer" means any substance used to melt snow and ice, or used for its anti-icing
effects, on privately owned surfaces traveled by pedestrians and vehicles; and

(4) "owner" means a person that owns, leases, or manages real estate and the person's
employees that contract in writing with a certified commercial applicator.

Subd. 2.

Voluntary certification program; best management practices.

(a) The
commissioner of the Pollution Control Agency must develop a training program that promotes
best management practices for removing snow and ice and applying deicer and must allow
individuals who are commercial applicators to obtain certification as a water-friendly
applicator. The commissioner must certify an individual who is a commercial applicator as
a water-friendly applicator if the individual successfully completes the program and passes
the examination.

(b) The commissioner must provide additional training under this subdivision for certified
commercial applicators renewing certification after their initial training and certification.

(c) The commissioner must provide the training and testing module at locations statewide
and may make the recertification training available online.

(d) The commissioner must annually post the best management practices and a list of
certified commercial applicators on the agency's Web site.

(e) The commissioner may charge a fee of no more than $250 per certified commercial
applicator for the training or recertification under this subdivision. Fees collected under this
subdivision must be deposited in the environmental fund.

Subd. 3.

Liability.

(a) A commercial applicator certified under this section; the owner,
occupant, or lessee of real property maintained by a certified commercial applicator; or an
employee of that owner, occupant, or lessee who is certified under this section is not civilly
liable for any claim based on a snow or ice condition arising out of the implementation of
the best management practices developed by the commissioner under this section even if
there is actual notice of the snow or ice condition, except when the snow or ice condition
is affirmatively caused by the willful or reckless acts of the certified commercial applicator
or the employee of the owner, occupant, or lessee who is certified under this section.
Commercial applicators certified under this section; the owner, occupants, or lessees of land
maintained by a certified commercial applicator; and an employee of that owner, occupant,
or lessee who is certified under this section are presumed to be acting pursuant to the best
management practices developed by the commissioner under this section.

(b) To receive the immunity protection under paragraph (a), and not for any other purpose,
the commercial applicator, or the employee of the owner, occupant, or lessee, must have a
current certification, pass an exam, complete the winter maintenance assessment tool
requirements developed by the commissioner, and keep a written record describing the road,
parking lot, and property maintenance practices used. The written record must include the
type and rate of application of deicing materials used, the dates of treatment, and the weather
conditions for each event requiring deicing. The records must be kept for a minimum of six
years.

(c) The liability of a commercial applicator who applies deicer but is not certified under
this section may not be determined under the standards provided in this subdivision.

Subd. 4.

Record keeping.

(a) A certified commercial applicator or a company employing
one or more certified commercial applicators must maintain the following records as part
of the best management practices approved by the commissioner:

(1) a copy of the applicator's certification approved by the commissioner and any
recertification;

(2) evidence of passing the examination approved by the commissioner;

(3) copies of the assessment tool requirements for winter maintenance developed by the
commissioner; and

(4) a written record describing the practices used for road, parking lot, and property
maintenance.

(b) The written record under paragraph (a), clause (4), must include the type and rate of
application of deicing materials used, the dates of treatment, and the weather conditions for
each event requiring deicing.

(c) Records required under this subdivision must be kept for at least six years.

Subd. 5.

Penalty.

The commissioner may revoke or decline to renew the certification
of a certified commercial applicator that violates this section or rules adopted under this
section.

Subd. 6.

Relation to other law.

Nothing in this section affects municipal liability under
section 466.03.

EFFECTIVE DATE.

This section is effective August 1, 2018, and applies to claims
arising on or after that date.

Sec. 83.

Minnesota Statutes 2016, section 116.993, subdivision 2, is amended to read:


Subd. 2.

Eligible borrower.

To be eligible for a loan under this section, a borrower
must:

(1) be a small business corporation, sole proprietorship, partnership, or association;

(2) be a potential emitter of pollutants to the air, ground, or water;

(3) need capital for equipment purchases that will meet or exceed environmental
regulations or need capital for site investigation and cleanup;

(4) have less fewer than 50 100 full-time equivalent employees; and

(5) have an after tax after-tax profit of less than $500,000; and.

(6) have a net worth of less than $1,000,000.

Sec. 84.

Minnesota Statutes 2016, section 116.993, subdivision 6, is amended to read:


Subd. 6.

Loan conditions.

A loan made under this section must include:

(1) an interest rate that is four percent or at or below one-half the prime rate, whichever
is greater
not to exceed five percent;

(2) a term of payment of not more than seven years; and

(3) an amount not less than $1,000 or exceeding $50,000 $75,000.

Sec. 85.

Minnesota Statutes 2017 Supplement, section 169A.07, is amended to read:


169A.07 FIRST-TIME DWI VIOLATOR; OFF-ROAD VEHICLE OR BOAT.

A person who violates section 169A.20 (driving while impaired) while using an off-road
recreational vehicle or motorboat and who does not have a qualified prior impaired driving
incident is subject only to the criminal penalty provided in section 169A.25 (second-degree
driving while impaired), 169A.26 (third-degree driving while impaired), or 169A.27
(fourth-degree driving while impaired); and loss of operating privileges as provided in
section 84.91, subdivision 1 (operation of snowmobiles or all-terrain vehicles by persons
under the influence of alcohol or controlled substances), or 86B.331, subdivision 1 (operation
of motorboats while using alcohol or with a physical or mental disability), whichever is
applicable. The person is not subject to the provisions of section 169A.275, subdivision 5
(submission to the level of care recommended in chemical use assessment for repeat offenders
and offenders with alcohol concentration of 0.16 or more); 169A.277 (long-term monitoring);
169A.285 (penalty assessment); 169A.44 (conditional release); 169A.54 (impaired driving
convictions and adjudications; administrative penalties); or 169A.54, subdivision 11
(chemical use assessment); the license revocation sanctions of sections 169A.50 to 169A.53
(implied consent law) or 171.177 (revocation; search warrant);
or the plate impoundment
provisions of section 169A.60 (administrative impoundment of plates).

EFFECTIVE DATE.

This section is effective August 1, 2018, and applies to violations
committed on or after that date.

Sec. 86.

Minnesota Statutes 2016, section 180.03, subdivision 2, is amended to read:


Subd. 2.

Fences.

Every person, firm, or corporation that is or has been engaged in the
business of mining or removing iron ore, taconite, semitaconite or other minerals except
sand, crushed rock, and gravel shall erect and maintain, as a minimum, a three strand wire
fence along the outside perimeter of the excavation, open pit, or shaft of any mine in which
mining operations have ceased for a period of six consecutive months or longer. Based upon
local site conditions that may exist at shafts, caves, or open pits, the county mine inspector
may require more secure fencing such as barbed wire or mesh fence, or may require barriers,
appropriate signs, or any combination of the above, to reduce the possibility of accidental
falls. The county mine inspector may grant exemptions under subdivision 4. Where mining
operations have ceased and not resumed, the fence, barrier, signs, or combination of them
required by this section
shall be erected within two years from the date when the county
mine inspector directs the erection of fences, barriers, signs, or combination of them.

Sec. 87.

Minnesota Statutes 2016, section 180.03, subdivision 3, is amended to read:


Subd. 3.

Abandoned mines.

Except as described in subdivision 4, when a mine is idle
or abandoned it is the duty of the inspector of mines to notify the person, firm, or corporation
that is or has been engaged in the business of mining to erect and maintain around all the
shafts, caves, and open pits of such mines a fence, barrier, appropriate signs, or combination
of them, suitable to warn of the presence of shafts, caves, or open pits and reduce the
possibility of accidentally falling into these shafts, caves, or open pits. If the mine has been
idled or abandoned, or if the person, firm, or corporation that has been engaged in the
business of mining no longer exists, the fee owner shall erect and maintain the fence, barrier,
or signs required by this section. If the fee owner fails to act, the county in which the mining
operation is located may, in addition to any other remedies available, abate the nuisance by
erecting or maintaining the fence, barrier, or signs and assessing the costs and related
expenses pursuant to section 429.101.

Sec. 88.

Minnesota Statutes 2016, section 180.03, subdivision 4, is amended to read:


Subd. 4.

Exemptions.

(a) The portion of an excavation, cave, open or water-filled pit,
or shaft is exempt from the requirements of this section if:

(1) it is located on property owned, leased, or administered by the Office of the
Commissioner of Iron Range Resources and Rehabilitation;

(2) it is for the construction, operation, maintenance, or administration of:

(i) grants-in-aid trails as defined in section 85.018;

(ii) property owned or leased by a municipality, as defined in section 466.01, subdivision
1, that is intended or permitted to be used as a park, an open area for recreational purposes,
or for the provision of recreational services, including the creation of trails or paths without
artificial surfaces; or

(iii) recreational use, as defined in section 604A.21, subdivisions 5 and 6, provided the
use is administered by a municipality, as defined in section 466.01, subdivision 1;

(3) it is for economic development purposes under chapter 469; or

(4) upon written application by the property owner, the county mine inspector may
exempt from the requirements of subdivision 2, any abandoned excavation, open pit, or
shaft which
determines that it is provided with fencing, barriers, appropriate signs, or
combinations of them, in a manner that is reasonably similar to the standards in subdivision
2, or which if, in the inspector's judgment, it does not constitute a safety hazard.

(b) Where an exemption applies, there shall be, at a minimum, appropriate signs posted
by the recipient of the exemption consistent with section 97B.001, subdivision 4:

(1) at each location of public access to the mining area restricting access to designated
areas and warning of possible dangers due to the presence of excavations, shafts, caves, or
open or water-filled pits;

(2) prohibiting public access beyond the boundaries of the designated public access area;
and

(3) identifying those areas where the property on which public access is allowed abuts
private property.

(c) Where an exemption applies, to reduce the possibility of inadvertent access beyond
the boundaries of the designated public access area, any new fencing erected by the recipient
of the exemption in accordance with subdivision 2 or 3 shall be maintained by the recipient
of the exemption.

(d) Notwithstanding section 180.10, limited openings in preexisting fencing may be
created and maintained by the recipient of the exemption or its agent to provide public
access to the designated public access area.

(e) The county mine inspector has the authority to enter, examine, and inspect any and
all property exempted under this section at all reasonable times by day or by night, and, in
addition to enforcing the provisions of this chapter, may make recommendations regarding
the erection of fences, barriers, signs, or a combination of them.

Sec. 89.

Minnesota Statutes 2016, section 180.10, is amended to read:


180.10 REMOVAL OF FENCE; GUARD.

A worker, employee, or other person who opens, removes, or disturbs any fence, guard,
barrier, sign, or rail required by section 180.03 and fails to close or replace or have the same
closed or replaced again around or in front of any mine shaft, pit, chute, excavation, cave,
or land liable to cave, injure, or destroy, whether by accident, injury, or damage results,
either to the mine or those at work therein, or to any other person, shall be guilty of a
misdemeanor. A worker, employee, or other person who, in regard to any fence, guard,
barrier, sign, or rail, does any of the acts prohibited by section 609.52, commits theft of the
fence, guard, barrier, sign, or rail may be sentenced as provided in section 609.52.

Sec. 90.

[383A.606] DISCONTINUANCE OF RAMSEY SOIL AND WATER
CONSERVATION DISTRICT; TRANSFER OF DUTIES.

Subdivision 1.

Discontinuance.

Notwithstanding section 103C.225, the Ramsey Soil
and Water Conservation District is discontinued effective July 1, 2018, and its duties and
authorities are transferred to the Ramsey County Board of Commissioners.

Subd. 2.

Transfer of duties and authorities.

The Ramsey County Board of
Commissioners has the duties and authorities of a soil and water conservation district. All
contracts in effect on the date of the discontinuance of the district to which Ramsey Soil
and Water Conservation District is a party remain in force and effect for the period provided
in the contracts. The Ramsey County Board of Commissioners shall be substituted for the
Ramsey Soil and Water Conservation District as party to the contracts and succeed to the
district's rights and duties.

Subd. 3.

Transfer of assets.

The Ramsey Soil and Water Conservation District Board
of Supervisors shall transfer the assets of the district to the Ramsey County Board of
Commissioners. The Ramsey County Board of Commissioners shall use the transferred
assets for the purposes of implementing the transferred duties and authorities.

Subd. 4.

Reestablishment.

The Ramsey County Board of Commissioners may petition
the Minnesota Board of Water and Soil Resources to reestablish the Ramsey Soil and Water
Conservation District. Alternatively, the Minnesota Board of Water and Soil Resources
under its authority in section 103C.201, and after giving notice of corrective actions and
time to implement the corrective actions, may reestablish the Ramsey Soil and Water
Conservation District if it determines the goals established in section 103C.005 are not
being achieved. The Minnesota Board of Water and Soil Resources may reestablish the
Ramsey Soil and Water Conservation District under this subdivision without a referendum.

EFFECTIVE DATE.

This section is effective the day after the governing body of
Ramsey County and its chief clerical officer timely complete their compliance with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.

Sec. 91.

Minnesota Statutes 2016, section 444.075, subdivision 1a, is amended to read:


Subd. 1a.

Authorization.

Any municipality may build, construct, reconstruct, repair,
enlarge, improve, or in any other manner obtain facilities, and maintain and operate the
facilities inside or outside its corporate limits, and acquire by gift, purchase, lease,
condemnation, or otherwise any and all land and easements required for that purpose. The
authority hereby granted is in addition to all other powers with reference to the facilities
otherwise granted by the laws of this state or by the charter of any municipality. The authority
regarding storm sewers granted to municipalities which have territory within a watershed
which has adopted a watershed plan pursuant to section 103B.231 shall be exercised, with
respect to facilities acquired following the adoption of the watershed plan, only for facilities
which are not inconsistent with the watershed plan. The authority regarding storm sewers
granted to municipalities which have adopted local water management plans pursuant to
section 103B.235 shall be exercised, with respect to facilities acquired following the adoption
of a local plan, only for facilities which are not inconsistent with the local plan. Counties,
except counties in the seven-county metropolitan area,
shall have the same authority granted
to municipalities by this subdivision except for areas of the county organized into cities and
areas of the county incorporated within a sanitary district established by special act of the
legislature.

Sec. 92.

Minnesota Statutes 2016, section 473.8441, subdivision 4, is amended to read:


Subd. 4.

Grant conditions.

The commissioner shall administer grants so that the
following conditions are met:

(a) A county must apply for a grant in the manner determined by the commissioner. The
application must describe the activities for which the grant will be used.

(b) The activities funded must be consistent with the metropolitan policy plan and the
county master plan.

(c) A grant must be matched by equal county local expenditures for the activities for
which the grant is made. A local expenditure may include, but is not limited to, an
expenditure by a local unit of government, tribal government, or private sector or nonprofit
organization.

(d) All grant funds must be used for new activities or to enhance or increase the
effectiveness of existing activities in the county. Grant funds must not be used for research
or development of a product that would be patented, copyrighted, or a subject of trade
secrets.

(e) Counties shall provide support to maintain effective municipal recycling where it is
already established.

Sec. 93.

Laws 2015, First Special Session chapter 4, article 4, section 136, as amended
by Laws 2017, chapter 93, article 2, section 149, is amended to read:


Sec. 136. WILD RICE WATER QUALITY STANDARDS.

(a) Until the commissioner of the Pollution Control Agency amends rules refining the
wild rice water quality standard in Minnesota Rules, part 7050.0224, subpart 2, to consider
all independent research and publicly funded research and to include criteria for identifying
waters and a list of waters subject to the standard, implementation of the wild rice water
quality standard in Minnesota Rules, part 7050.0224, subpart 2, shall be limited to the
following, unless the permittee requests additional conditions:

(1) when issuing, modifying, or renewing national pollutant discharge elimination system
(NPDES) or state disposal system (SDS) permits, the agency shall endeavor to protect wild
rice, and in doing so shall be limited by the following conditions:

(i) the agency shall not require permittees to expend money for design or implementation
of sulfate treatment technologies or other forms of sulfate mitigation; and

(ii) the agency may require sulfate minimization plans in permits; and

(2) the agency shall not list waters containing natural beds of wild rice as impaired for
sulfate under section 303(d) of the federal Clean Water Act, United States Code, title 33,
section 1313, until the rulemaking described in this paragraph takes effect.

(b) Upon the rule described in paragraph (a) taking effect, the agency may reopen permits
issued or reissued after the effective date of this section as needed to include numeric permit
limits based on the wild rice water quality standard.

(c) The commissioner shall complete the rulemaking described in paragraph (a) by
January 15, 2019.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 94.

Laws 2016, chapter 189, article 3, section 48, is amended to read:


Sec. 48. LAKE SERVICE PROVIDER FEASIBILITY REPORT.

The commissioner of natural resources shall report to the chairs of the house of
representatives and senate committees with jurisdiction over natural resources by January
15, 2019 2020, regarding the feasibility of expanding permitting to service providers as
described in Minnesota Statutes, section 84D.108, subdivision 2a, to other water bodies in
the state. The report must:

(1) include recommendations for state and local resources needed to implement the
program;

(2) assess local government inspection roles under Minnesota Statutes, section 84D.105,
subdivision 2
, paragraph (g); and

(3) assess whether mechanisms to ensure that water-related equipment placed back into
the same body of water from which it was removed can adequately protect other water
bodies.

Sec. 95.

Laws 2017, chapter 93, article 2, section 155, subdivision 5, is amended to read:


Subd. 5.

Sunset.

This section expires two six years from the day following final
enactment.

Sec. 96.

Laws 2017, chapter 93, article 2, section 163, is amended to read:


Sec. 163. ACTION TO OBTAIN ACCESS PROHIBITED; CLEARWATER
COUNTY.

Before July 1, 2018, The commissioner of natural resources must not initiate a civil
action to obtain access to Island Lake FMHA Wildlife Management Area in Clearwater
County.

Sec. 97. APPLICATION OF STORM WATER RULES TO TOWNSHIPS.

Until the Pollution Control Agency amends rules for storm water, Minnesota Rules, part
7090.1010, subpart 1, item B, subitem (1), only applies to the portions of the city or township
that are designated as urbanized under Code of Federal Regulations, title 40, section 122.26
(a)(9)(i)(A), and other platted areas within that jurisdiction.

Sec. 98. RULEMAKING; DISPOSAL FACILITY CERTIFICATES.

(a) The commissioner of the Pollution Control Agency must amend Minnesota Rules,
part 7048.1000, subpart 4, item D, to require six contact hours of required training to renew
a type IV disposal facility certificate.

(b) The commissioner may use the good cause exemption under Minnesota Statutes,
section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
Statutes, section 14.386, does not apply, except as provided under Minnesota Statutes,
section 14.388.

Sec. 99. RECREATIONAL TRAILS; ENVIRONMENTAL REVIEW;
RULEMAKING.

(a) The Environmental Quality Board must amend Minnesota Rules, chapter 4410, to
be consistent with this section, including amending Minnesota Rules, part 4410.4300, subpart
37, as follows:

(1) item A must be amended to read: "Constructing a trail at least 25 miles long on
forested or other naturally vegetated land for a recreational use unless exempted by part
4410.4600, subpart 14, item D. In applying this item, if a proposed trail will contain segments
of newly constructed trail and segments that will follow an existing trail but be designated
for a new motorized use, an EAW must be prepared if the sum of the quotients obtained by
dividing the length of the new construction by 25 miles and length of the existing but newly
designated trail by 25 miles equals or exceeds one. Additions and designations under items
C and D do not apply to this formula.";

(2) item B must be amended to read: "Designating at least 25 miles of an existing trail
for a new motorized recreational use other than snowmobiling. In applying this item, if a
proposed trail will contain segments of newly constructed trail and segments that will follow
an existing trail but be designated for a new motorized use, an EAW must be prepared if
the sum of the quotients obtained by dividing the length of the new construction by 25 miles
and the length of the existing but newly designated trail by 25 miles equals or exceeds one.
Additions and designations under items C and D do not apply to this formula.";

(3) a new item C must be adopted to read: "When adding a new motorized recreational
use or seasonal motorized recreational use to an existing motorized recreational trail if the
treadway width is not expanded as a result of the added use, a mandatory EAW is not
required."; and

(4) a new item D must be adopted to read: "When designating an existing, legally
constructed route for motorized recreational use, a mandatory EAW is not required."

(b) The board may use the good cause exemption rulemaking procedure under Minnesota
Statutes, section 14.388, subdivision 1, clause (3), to adopt rules under this section, and
Minnesota Statutes, section 14.386, does not apply except as provided under Minnesota
Statutes, section 14.388.

Sec. 100. WETLAND REPLACEMENT; FRAMEWORKS FOR IN-LIEU FEE
PROGRAM.

The Board of Water and Soil Resources, in cooperation with the United States Army
Corps of Engineers, may complete the planning frameworks and other program application
requirements necessary for federal approval of an in-lieu fee program, as authorized under
Minnesota Statutes, section 103G.2242, in the Red River basin and the greater than 80
percent area. The planning frameworks must contain a prioritization strategy for selecting
and implementing mitigation activities based on a watershed approach that includes
consideration of historic resource loss within watersheds and the extent to which mitigation
can address priority watershed needs. The board must consider the recommendations of the
report "Siting of Wetland Mitigation in Northeast Minnesota," dated March 7, 2014, and
implementation of Minnesota Statutes, section 103B.3355, paragraphs (e) and (f), in
developing proposed planning frameworks for applicable watersheds. When completing
the work and pursuing approval of an in-lieu fee program, the board must do so consistent
with the applicable requirements, stakeholder and agency review processes, and approval
time frames in Code of Federal Regulations, title 33, section 332. The board must submit
any completed planning frameworks to the chairs and ranking minority members of the
house of representatives and the senate committees and divisions with jurisdiction over
environment and natural resources upon receiving federal approval.

Sec. 101. TEMPORARY ENFORCEMENT OF GROUNDWATER
APPROPRIATION PERMIT REQUIREMENTS.

(a) Until July 1, 2019, the commissioner of natural resources must not expend funds to
suspend or revoke a water appropriation permit, issue an order requiring a violation to be
corrected, assess monetary penalties, or otherwise take enforcement action against a water
appropriation permit holder if the suspension, revocation, order, penalty, or other enforcement
action is based solely on a violation of a permit requirement added to a groundwater
appropriation permit within the north and east metro groundwater management area as a
result of a court order issued in 2017.

(b) The commissioner of natural resources may continue to use all the authorities granted
to the commissioner under Minnesota Statutes, section 103G.287, to manage groundwater
resources within the north and east groundwater management area.

Sec. 102. GROUNDWATER MANAGEMENT AREA PERMIT REQUIREMENTS.

(a) Notwithstanding water appropriation permit requirements added by the commissioner
of natural resources as a result of a court order issued in 2017, a public water supplier located
in the seven-county metropolitan area within a designated groundwater management area:

(1) is not required to revise a water supply plan to include contingency plans to fully or
partially convert its water supplies to surface water;

(2) may prepare, enact, and enforce commercial or residential irrigation bans or alternative
measures that achieve similar water use reductions when notified by the commissioner of
natural resources that lake levels have fallen below court-ordered levels; and

(3) is not required to use per capita residential water use as a measure for purposes of
water use reduction goals, plans, and implementation and may submit water use plans and
reports that use a measure other than per capita residential water use.

(b) This section expires July 1, 2019.

Sec. 103. 1837 CEDED TERRITORY FISHERIES TECHNICAL COMMITTEE.

The commissioner of natural resources may invite at least two fish managers as designated
by the commissioner to attend all meetings of the 1837 Ceded Territory Fisheries Technical
Committee.

Sec. 104. CARBON MONOXIDE EXPOSURE; FISH HOUSES AND ICE
SHELTERS; REPORT.

The commissioner of natural resources must work with fish house and ice shelter
manufacturers and other interested parties to identify best practices to reduce fish house
and ice shelter user exposure to carbon monoxide. The commissioner must increase outreach
efforts relating to the dangers of carbon monoxide exposure in fish houses and report
recommendations to the chairs of the house of representatives and senate committees and
divisions with jurisdiction over environment and natural resources policy by January 15,
2019.

Sec. 105. NONPOINT PRIORITY FUNDING PLAN; REPORT.

The Board of Water and Soil Resources, in cooperation with representatives of state
agencies, local governments, tribal governments, private and nonprofit organizations, and
others must review the nonpoint priority funding plan under Minnesota Statutes, section
114D.50, subdivision 3a. By January 31, 2019, the board must submit a report to the chairs
and ranking minority members of the house of representatives and senate committees and
divisions with jurisdiction over environment and natural resources that contains
recommendations to improve the effectiveness of nonpoint priority funding plans to meet
the requirements in Minnesota Statutes, section 114D.50, subdivision 3a, the purposes in
Minnesota Statutes, section 114D.50, subdivision 3, and the watershed and groundwater
restoration and protection goals of Minnesota Statutes, chapters 103B and 114D.

Sec. 106. HILL-ANNEX MINE STATE PARK; MANAGEMENT AND OPERATION.

(a) The commissioner of natural resources must operate the Hill-Annex Mine State Park
for the purposes it was established through June 30, 2021. The commissioner must work
with the group established under Laws 2017, chapter 93, article 2, section 156, to review
park activities and the alternate operating model developed and identify options for
sustainable and viable operation of the park site. The commissioner must submit
recommendations to the chairs and ranking minority members of the house of representatives
and senate committees and divisions with jurisdiction over the environment and natural
resources by January 15, 2021.

(b) The commissioner of natural resources must work with the city of Calumet, other
neighboring cities and townships, and other local units of government to identify and
coordinate volunteers to supplement the Department of Natural Resources' park operations
to the extent allowable under state law and rules.

Sec. 107. DEMOLITION DEBRIS LANDFILLS; PERMITTING; GROUNDWATER
EVALUATION.

(a) In issuing or reissuing a class I demolition land disposal facility permit, the Minnesota
Pollution Control Agency must consider environmental benefits and impacts, social and
economic factors, the feasibility and practicability of the permit conditions, and whether
the burden of any resulting tax or fee is reasonable, feasible, or practicable. A permit issued
under this section must be in accordance with Minnesota Rules, part 7035.2825, and the
Pollution Control Agency's Demolition Landfill Guidance published August 2005. The
Pollution Control Agency must not impose permit conditions on class 1 demolition land
disposal facilities, including requirements for enhanced cover and hydrogeologic sampling,
analysis, and reporting, that are not contained in current rules or the Demolition Landfill
Guidance unless revised rules are adopted reflecting the restrictions on permits required by
this paragraph.

(b) The Pollution Control Agency must use existing appropriations to contract with an
independent laboratory to develop a sampling protocol and to collect, analyze, and evaluate
groundwater quality data from demolition debris land disposal facilities under a monitoring
program in accordance with the Pollution Control Agency's Demolition Landfill Guidance
published August 2005. Data on groundwater quality must be evaluated in reference to and
in accordance with the definition of pollutant under Minnesota Statutes, section 103H.005,
subdivision 11, based on the Minnesota Department of Health's adopted health risk limits
and health risk values. In evaluating pollutants, a laboratory must consider whether pollutant
concentrations may originate from activities not associated with the permitted demolition
debris land disposal facility. By November 1, 2018, the agency must submit a report of the
evaluation to the chairs and ranking minority members of the senate and house of
representatives committees with jurisdiction over environment and natural resources finance.

Sec. 108. PUBLIC DRAINAGE DITCH BUFFER STRIP; PLANTING AND
MAINTENANCE.

With the consent of the property owner where the drainage ditch buffer will be located,
a drainage authority, as defined in Minnesota Statutes, section 103E.005, subdivision 9,
may plant and maintain 16-1/2-foot ditch buffer strips that meet the width and vegetation
requirements of Minnesota Statutes, section 103E.021, before acquiring and compensating
for the buffer strip land rights according to Minnesota Statutes, chapter 103E. Planting and
maintenance costs may be paid in accordance with Minnesota Statutes, chapter 103E. This
section expires June 30, 2019.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 109. WILD RICE; LEGISLATIVE FINDINGS.

(a) The legislature finds that naturally occurring wild rice is an ecologically and culturally
important aquatic plant resource found in certain waters within the state, which serves as a
food source for wildlife and humans. The legislature further finds that in recognition of the
unique importance of this resource, the Pollution Control Agency, in conjunction with
Minnesota Indian tribes, has identified and listed, in rule, select wild-rice waters for which
the water quality and the aquatic habitat necessary to support the propagation and
maintenance of wild rice must not be materially impaired or degraded. The legislature also
finds that identifying and listing additional wild-rice waters based upon their exceptional
wild-rice characteristics is an appropriate method of protecting naturally occurring wild
rice.

(b) The legislature further finds that federal law vests broad authority in the state to
define beneficial uses for waters for the state and grants the state the primary responsibility
and right to plan the development and use of the state's water resources and to specify
appropriate water uses to be achieved and protected. The legislature also finds that certain
waters of the state are used to irrigate wild rice intentionally grown as an agricultural crop,
which is an appropriate beneficial use to be achieved and protected and which is the only
established beneficial use specifically pertaining to wild rice. The legislature also finds that
Minnesota has a unique numeric water quality standard for sulfate in rule to protect this
beneficial use to permit the use of waters for irrigation for the production of wild rice that
is based on outdated information and ignores the current scientific understanding of the
potential impacts of sulfate on wild rice.

(c) The legislature further finds that it is contrary to the public welfare to impose
requirements or burdens on regulated parties in Minnesota on the basis of a water quality
standard that ignores current science. The legislature also finds that the water quality standard
for sulfate has not been enforced in Minnesota since it was adopted in 1973, that the Pollution
Control Agency has not designated in rules any waters subject to the water quality standard
for sulfate, and that initiating enforcement of the existing obsolete standard would impose
prohibitively expensive burdens on regulated parties with potentially grave economic impacts
on Minnesota communities and industry.

(d) In recognition of the existence in rule of a water quality standard for sulfate that is
not supported by current scientific information, in recognition of the potentially grave
consequences that would occur from enforcement of that obsolete standard, and recognizing
that the administrative process to repeal the rule has proven to be inefficient and will not
provide the regulatory certainty required in a timely manner in the absence of legislative
action, the legislature finds that the most effective means to serve the welfare of the state
is to enact sections 110 to 115 to eliminate the water quality standard for sulfate, leaving
in place sufficient other provisions in law and rule for the protection of naturally occurring
wild rice, including but not limited to the listing of additional select wild-rice waters.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 110. WATER QUALITY STANDARD FOR SULFATE; RULEMAKING.

The commissioner of the Pollution Control Agency may not adopt, modify, or proceed
with any revisions to the rules pertaining to water quality standards for sulfate for wild-rice
waters in Minnesota Rules, part 7050.0224, subpart 2, that were disapproved by the chief
administrative law judge on January 11, 2018, without again going through the rulemaking
procedures under Minnesota Statutes, sections 14.05 to 14.28, except Minnesota Statutes,
section 14.101, does not apply.

EFFECTIVE DATE.

This section is effective retroactively from January 11, 2018.

Sec. 111. IDENTIFICATION AND LISTING OF WILD-RICE WATERS.

The commissioner of the Pollution Control Agency may evaluate the waters of the state
to determine if any additional waters containing naturally occurring wild rice have exceptional
wild-rice characteristics. The commissioner may, by rule, identify and list these waters as
[WR] waters where the water quality and the aquatic habitat necessary to support the
propagation and maintenance of wild rice must not be materially impaired or degraded.
Before identifying and listing a wild-rice water, the commissioner must establish, in a
separate and prior rulemaking, criteria to be used in identifying and listing wild-rice waters.
The criteria must include the following, each of which must be met before a water body
can be identified and listed as a wild-rice water:

(1) the history of harvesting wild rice;

(2) minimum acreage; and

(3) minimum density of wild rice.

Sec. 112. APPLICATION OF WATER QUALITY STANDARD FOR SULFATE
FOR WILD-RICE WATERS.

The commissioner of the Pollution Control Agency must not apply the water quality
standard for sulfate for wild-rice waters nullified in this act when issuing, modifying, or
renewing national pollutant discharge elimination system or state disposal system permits.
The commissioner of the Pollution Control Agency must take all steps necessary to conform
the agency's rules and practices to this act and to ensure that no regulated party is required
to take any action or bear any burden arising from the nullified water quality standard for
sulfate unless requested by the permittee.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 113. APPLICATION OF EQUATION-BASED WATER QUALITY STANDARD
FOR WILD-RICE WATERS.

The commissioner of the Pollution Control Agency must not apply the proposed
equation-based sulfate standard rejected by the chief administrative law judge on January
11, 2018, including as a numeric translator to the narrative sulfate standard for wild rice
under Minnesota Rules, part 7050.0150, subpart 3, or 7050.0224, subpart 1, when issuing,
modifying, or renewing national pollutant discharge elimination system or state disposal
system permits.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 114. APPLICATION OF WATER QUALITY STANDARDS; IRRIGATION.

The commissioner of the Pollution Control Agency must not apply a water quality
standard established to protect water quality for purposes of permitting the water's use for
irrigation without significant damage or adverse effects upon crops or vegetation, including
water used for the production of wild rice, unless the water is appropriated for irrigation
use.

Sec. 115. NULLIFICATION OF WATER QUALITY STANDARD FOR SULFATE
IN WILD-RICE WATERS.

(a) Notwithstanding Minnesota Rules, part 7050.0224, subpart 2, there is no numeric,
nonnarrative, water quality standard for sulfates in class 4A waters in the state until the
commissioner of the Pollution Control Agency adopts a standard in accordance with section
110.

(b) That portion of Minnesota Rules, part 7050.0224, subpart 2, that conflicts with
paragraph (a) is nullified and does not have the force and effect of law.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 116. WILD RICE REPORT.

(a) The commissioner of natural resources must convene a work group consisting of
state, tribal, and public experts familiar with the agronomy and hydrology that supports
naturally occurring wild rice. The work group's purpose is to advise the commissioner in
the preparation of a report on wild rice.

(b) The commissioner of natural resources must submit a report to the state's tribal
governments and the chairs and ranking minority members of the legislative committees
and divisions with jurisdiction over environment and natural resources by January 15, 2019,
that:

(1) provides recommendations on actions necessary to preserve and improve the health
of existing natural wild rice beds;

(2) includes recommendations on monitoring the effectiveness of restoration and
protection activities;

(3) identifies best management practices for natural wild rice protection and restoration
and recommendations for expanding the use of effective best management practices; and

(4) identifies areas in which to implement the best management practices.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 5

JOBS AND ENERGY APPROPRIATIONS

Section 1. APPROPRIATIONS

The sums shown in the columns under "Appropriations" are added to appropriations in
Laws 2017, chapter 94, or other law to the specified agencies. The appropriations are from
the general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2018" and "2019" used in this article mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2018, or June 30, 2019,
respectively. Appropriations for the fiscal year ending June 30, 2018, are effective the day
following final enactment. Reductions may be taken in either fiscal year.

APPROPRIATIONS
Available for the Year
Ending June 30
2018
2019

Sec. 2. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT

Subdivision 1.

Total Appropriation

$
0
$
20,320,000
Appropriations by Fund
General
-0-
$19,720,000
Renewable
Development
-0-
$600,000

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

Subd. 2.

Business and Community Development

0
5,320,000
Appropriations by Fund
General
-0-
$4,720,000
Renewable
Development
-0-
$600,000

(a) $50,000 in fiscal year 2019 is for a grant
to Advocating Change Together to address
barriers to employment for people with
disabilities and provide skills training. This
appropriation is available until June 30, 2021.

(b) $400,000 in fiscal year 2019 is for a grant
to Project Build Minnesota for a statewide
public awareness campaign to encourage
middle school and high school students to
consider careers in the construction industry,
with a special emphasis on reaching
individuals and groups that are economically
disadvantaged or historically underrepresented
in the construction industry. Grant funds must
be used to develop educational resources,
including a Web site; perform outreach to
students, parents, guidance counselors, and
others about opportunities in the construction
industry; and partner with educational
institutions and nonprofits to offer technical
training. This is a onetime appropriation.

(c) $1,500,000 in fiscal year 2019 is for a grant
to the city of Cambridge for costs associated
with relocating and constructing a propane
distribution facility and for costs associated
with demolition, cleanup and restoration of
the existing propane facility. Eligible costs
include: land acquisition, site preparation and
improvements, moving expenses, building
construction, rail construction, rail switch
construction, demolition, environmental
remediation, engineering, and other necessary
site improvements. This is a onetime
appropriation and is available until the project
is completed or abandoned subject to
Minnesota Statutes, section 16A.642.

(d) $590,000 in fiscal year 2019 is for grants
to centers for independent living under
Minnesota Statutes, section 268A.11. The
grant money under this paragraph must be
used to hire eight employees to provide
services to veterans and to provide veterans
with other targeted services. This is a onetime
appropriation and is available until June 30,
2021.

(e) $150,000 in fiscal year 2019 is for transfer
to the Cook County Higher Education Board
to provide educational programming and
academic support services to remote regions
in northeastern Minnesota. This is a onetime
appropriation.

(f) $250,000 in fiscal year 2019 is for a grant
to Logistic Specialties, Inc. to create a pilot
workforce and development program in the
east metropolitan area focused on government
contract procurement and targeted to low- and
moderate-income communities of color. Every
six months, beginning on December 15, 2019,
the commissioner of employment and
economic development must submit a brief
update on the progress of the pilot project to
the chairs and ranking minority members of
the legislative committees with jurisdiction
over economic development. A final report
on pilot outcomes must be submitted to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
economic development by February 15, 2020.
This is a onetime appropriation and funds are
available until June 30, 2020.

(g) $500,000 in fiscal year 2019 is for job
training grants under Minnesota Statutes,
section 116L.42. This is a onetime
appropriation.

(h) $250,000 in fiscal year 2019 is for a grant
to the Hallie Q. Brown Community Center,
Inc., for youth intervention services through
the community ambassadors and youth
employment program. This is a onetime
appropriation.

(i) Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph
(k), $600,000 in fiscal year 2019 is from the
renewable development account in the special
revenue fund established in Minnesota
Statutes, section 116C.779, subdivision 1, for
a grant to the Board of Regents of the
University of Minnesota for academic and
applied research through MnDRIVE at the
Natural Resources Research Institute. Of this
amount, $300,000 is to develop and
demonstrate biomass conversion technology
for higher value fuels and $300,000 is to
develop and demonstrate advanced biogas
technologies for clean methane fuels. Both
programs must focus on translation and
deployment of technologies developed in
partnerships between industry and the
University of Minnesota. This is a onetime
appropriation.

(j) $230,000 in fiscal year 2019 is for a grant
to a city of the second class that is designated
as an economically depressed area by the
United States Department of Commerce. The
grant is for economic development,
redevelopment, and job creation programs and
projects. This is a onetime appropriation and
is available until June 30, 2021.

(k)(1) $300,000 in fiscal year 2019 for a grant
to the Minnesota Environmental Science and
Economic Review Board (MESERB) to
review water quality regulation and national
pollutant discharge elimination system permits
(NPDES). This grant is subject to Minnesota
Statutes, section 16B.98. MESERB may select
the water quality regulations and permits to
be reviewed but must give preference to
reviewing any draft NPDES permit that has
new effluent limit requirements for a publicly
owned wastewater treatment facility outside
the seven county metropolitan area. Any
permit review must analyze the technical
accuracy of the permit and the impact on both
business and residential rates, the water quality
benefit of permit compliance, and the
anticipated funding for the permittee from
federal and state sources. This is a onetime
appropriation and is available until June 30,
2021.

(2) Upon completion of the permit review,
MESERB must provide a copy of the review
to the permittee and the commissioner of the
Pollution Control Agency. MESERB must
also submit a report summarizing its findings
in each permit review performed in the
previous calendar year to the chairs and
ranking minority members of the legislative
committees with jurisdiction over capital
investment, environmental policy and finance,
and economic development.

(l) $500,000 in fiscal year 2019 is for a grant
to Comunidades Latinas Unidas en Servicio
(CLUES) to acquire property and to construct,
furnish, and equip a new education and
technology institute connected to CLUES
headquarters in St. Paul to provide education
and community gathering space. This
appropriation is available when the
commissioner of management and budget
determines that sufficient resources have been
committed to complete the project, as required
by Minnesota Statutes, section 16A.502. This
appropriation is onetime and available until
the project is completed or abandoned, subject
to Minnesota Statutes, section 16A.642.

Subd. 3.

Broadband Development

0
15,000,000

(a) $15,000,000 in fiscal year 2019 is for
transfer to the border-to-border broadband
fund account in the special revenue fund
established under Minnesota Statutes, section
116J.396 and may be used for purposes
provided in Minnesota Statutes, section
116J.395. This appropriation is onetime and
is available until spent. Of this appropriation,
up to three percent is for costs incurred by the
commissioner to administer Minnesota
Statutes, section 116J.395. Administrative
costs may include the following activities
related to measuring progress toward the
state's broadband goals established in
Minnesota Statutes, section 237.012:

(1) collecting broadband deployment data from
Minnesota providers, verifying its accuracy
through on-the-ground testing, and creating
state and county maps available to the public
showing the availability of broadband service
at various upload and download speeds
throughout Minnesota;

(2) analyzing the deployment data collected
to help inform future investments in broadband
infrastructure; and

(3) conducting business and residential surveys
that measure broadband adoption and use in
the state.

Data provided by a broadband provider under
this subdivision is nonpublic data under
Minnesota Statutes, section 13.02, subdivision
9. Maps produced under this subdivision are
public data under Minnesota Statutes, section
13.03.

(b) Of the amount appropriated in paragraph
(a), $750,000 is for grants to satellite
broadband providers under Minnesota
Statutes, section 116J.395.

Sec. 3. HOUSING FINANCE AGENCY

$
0
$
1,880,000

(a) $1,000,000 in fiscal year 2019 is for
transfer to the housing development fund for
the programs in Minnesota Statutes, sections
462A.201, subdivision 2, paragraph (a), clause
(4), and 462A.204, subdivision 8. The agency
may allocate this appropriation as necessary
to these two programs to facilitate the
Homework Starts with Home program. This
is a onetime appropriation.

(b) $500,000 in fiscal year 2019 is for park
infrastructure grants under Minnesota Statutes,
section 462A.2035, subdivision 1b. This is a
onetime appropriation.

(c) $380,000 in fiscal year 2019 is for grants
to organizations to provide lead risk
assessments by a lead inspector or a lead risk
assessor licensed by the commissioner
pursuant to Minnesota Statutes, section
144.9505, to test residential units for the
presence of lead hazards. Grant programs
receiving funding under this section must
provide funding for lead risk assessments for
properties built before 1978 to:

(1) landlords of residential buildings for
testing on units where the tenant's income does
not exceed 60 percent of area median income;
or

(2) tenants with an income that does not
exceed 60 percent of area median income.

The commissioner shall award grant funding
to target grant resources to landlords and
tenants where there are high concentrations
of lead poisoning in children based on the
information provided from the commissioner
of health. Up to ten percent of the grant may
be used to administer the grant and provide
education and outreach about lead health
hazards. This is a onetime appropriation.

Sec. 4. DEPARTMENT OF COMMERCE

$
0
$
7,100,000

This appropriation is from the renewable
development fund.

(a) Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph
(k), $3,000,000 in fiscal year 2019 is from the
renewable development account in the special
revenue fund under Minnesota Statutes,
section 116C.779, subdivision 1, for the local
government emerald ash borer removal grant
program under Minnesota Statutes, section
216C.437. This appropriation is onetime and
available until June 30, 2021.

(b)(1) $1,000,000 in fiscal year 2019 is from
the renewable development account in the
special revenue fund under Minnesota
Statutes, section 116C.779, subdivision 1, to
fund grants for demonstration projects that
assess the technical and economic
effectiveness of deploying energy storage
systems to restore electrical energy to critical
health care facilities following electrical
outages due to storms or other catastrophic
events. This is a onetime appropriation.

(2) The commissioner of commerce shall
endeavor to make grant awards under this
section for projects at critical health care
facilities located in all regions of the state.

(3) For the purposes of this paragraph, "energy
storage system" means a commercially
available technology capable of (i) absorbing
and storing electrical energy, and (ii)
dispatching sorted electrical energy for use at
a later time.

(c) $1,100,000 in fiscal year 2019 is from the
renewable development account in the special
revenue fund under Minnesota Statutes,
section 116C.779, subdivision 1, for the
residential biomass heating system grant
program under Minnesota Statutes, section
216C.419. This is a onetime appropriation and
available until June 30, 2020.

(d) Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph
(k), $2,000,000 in fiscal year 2019 is
appropriated from the renewable development
account in the special revenue fund established
in Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner for a grant
to the public utility that owns the Prairie Island
nuclear generation plant, for the following
purposes:

(1) $1,000,000 is to conduct a study to
determine the most rapid, safe, and economical
methods to remove spent nuclear fuel from
the independent spent fuel storage installations
at the Prairie Island and Monticello nuclear
electric generating plants, including, but not
limited to, an evaluation of alternative modes
of transport, possible routes, and infrastructure
needs; and

(2) $1,000,000 is to support the preparation
of applications by independent private parties
seeking a license from the Nuclear Regulatory
Commission to establish a consolidated
interim storage facility that could store spent
nuclear fuel currently stored at the independent
spent fuel storage installations at the
Monticello and Prairie Island nuclear electric
generating plants.

By July 15, 2019, the public utility that owns
the Prairie Island nuclear electric generating
plant must submit a report to the chairs and
ranking minority members of the legislative
committees with jurisdiction over electric
utilities and to the commissioner describing
the activities on which funds have been
expended under this paragraph, the results or
progress of any study or initiative, and future
planned uses of the funds. The public utility
must submit updated reports to the same
persons each succeeding July 15 until all funds
have been expended or unexpended funds have
been returned to the account. Any funds not
expended at the time of the final report must
be returned to the account. This is a onetime
appropriation.

Sec. 5. PUBLIC FACILITIES AUTHORITY

$
0
$
3,550,000

(a) $750,000 in fiscal year 2019 is for a grant
to the city of Deer River to predesign, design,
engineer, and construct a stabilization pond
and to predesign, design, construct, and install
the replacement and expansion of storm sewer
lines, sanitary sewer lines, and water lines in
the city of Deer River. This appropriation is
available when the commissioner of
management and budget determines that
resources sufficient to complete the project
are committed to the project, as required in
Minnesota Statutes, section 16A.502. This is
a onetime appropriation and is available until
the project is completed or abandoned subject
to Minnesota Statutes, section 16A.642.

(b) $600,000 in fiscal year 2019 is for a grant
to the Alexandria Lake Area Sanitary District
for lake management activities, including but
not limited to alum treatment in Lake Agnes,
carp removal in Lake Winona, and related
management and reassessment measures that
are intended to achieve and maintain
compliance with water quality standards for
phosphorus and the total maximum daily load
for Lake Winona. This is a onetime
appropriation and is available until June 30,
2021.

(c) $1,100,000 in fiscal year 2019 is for a grant
to the city of Cold Spring to acquire land,
predesign, design, engineer, construct, furnish,
and equip water infrastructure, including
drilling new wells, a water treatment plant,
and piping for water distribution. This is a
onetime appropriation and is available until
the project is completed or abandoned subject
to Minnesota Statutes, section 16A.642.

(d) $1,100,000 in fiscal year 2019 is for a
grant to the Big Lake Area Sanitary District
to construct a pressure sewer system and force
main to convey sewage to the Western Lake
Superior Sanitary District connection in the
city of Cloquet. This is a onetime
appropriation and is available until the project
is completed or abandoned subject to
Minnesota Statutes, section 16A.642.

Sec. 6.

Laws 2017, chapter 94, article 1, section 2, subdivision 2, as amended by Laws
2017, First Special Session chapter 7, section 2, is amended to read:


Subd. 2.

Business and Community Development

$
46,074,000
$
40,935,000
30,585,000
Appropriations by Fund
General
$43,363,000
$38,424,000
$28,074,000
Remediation
$700,000
$700,000
Workforce
Development
$1,861,000
$1,811,000
Special Revenue
$150,000
-0-

(a) $4,195,000 each year is 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 is
available until spent.

(b) $750,000 each year is for grants to the
Neighborhood Development Center for small
business programs:

(1) training, lending, and business services;

(2) model outreach and training in greater
Minnesota; and

(3) development of new business incubators.

This is a onetime appropriation.

(c) $1,175,000 each year is for a grant to the
Metropolitan Economic Development
Association (MEDA) for statewide business
development and assistance services, including
services to entrepreneurs with businesses that
have the potential to create job opportunities
for unemployed and underemployed people,
with an emphasis on minority-owned
businesses. This is a onetime appropriation.

(d) $125,000 each year is for a grant to the
White Earth Nation for the White Earth Nation
Integrated Business Development System to
provide business assistance with workforce
development, outreach, technical assistance,
infrastructure and operational support,
financing, and other business development
activities. This is a onetime appropriation.

(e)(1) $12,500,000 each year is in fiscal year
2018 and $7,500,000 in fiscal year 2019 are

for the Minnesota investment fund under
Minnesota Statutes, section 116J.8731. Of this
amount, the commissioner of employment and
economic development may use up to three
percent for administration and monitoring of
the program. This appropriation is available
until spent. In fiscal year 2020, the base
amount is $12,500,000. For fiscal year 2021
and beyond, the base amount is $9,500,000.

(2) Of the amount appropriated in fiscal year
2018, $4,000,000 is for a loan to construct and
equip a wholesale electronic component
distribution center investing a minimum of
$200,000,000 and constructing a facility at
least 700,000 square feet in size. Loan funds
may be used for purchases of materials,
supplies, and equipment for the construction
of the facility and are available from July 1,
2017, to June 30, 2021. The commissioner of
employment and economic development shall
forgive the loan after verification that the
project has satisfied performance goals and
contractual obligations as required under
Minnesota Statutes, section 116J.8731.

(3) Of the amount appropriated in fiscal year
2018, $700,000 is for a loan to extend an
effluent pipe that will deliver reclaimed water
to an innovative waste-to-biofuel project
investing a minimum of $150,000,000 and
constructing a facility that is designed to
process approximately 400,000 tons of waste
annually. Loan funds are available until June
30, 2021.

(4) Of the amount appropriated in fiscal year
2019, $2,000,000 is for one or more grants to
Florence Township in Goodhue County to
predesign, design, engineer, construct, and
install infrastructure for storm water
protection, wells, roads, public safety, and
power access in southeastern Minnesota, in
partnership with a tribal government and a
nonprofit organization, to enable future
economic development and increase economic
activity in southeastern Minnesota. The grant
recipient must provide a nonstate contribution
in an amount at least equal to the grant. This
portion of the appropriation is available until
the project is completed or abandoned subject
to Minnesota Statutes, section 16A.642.

(5) Of the amount appropriated in fiscal year
2019, $500,000 is for a grant to Mille Lacs
County to provide loans as described in
Minnesota Statutes, section 116J.8731, for
eligible projects located within one of the
follow municipalities surrounding Lake Mille
Lacs:

(i) in Crow Wing County, the city of Garrison,
township of Garrison, or township of
Roosevelt;

(ii) in Aitkin County, the township of
Hazelton, township of Wealthwood, township
of Malmo, or township of Lakeside; or

(iii) in Mille Lacs County, the city of Isle, city
of Wahkon, city of Onamia, township of East
Side, township of Isle Harbor, township of
South Harbor, or township of Kathio.

(6) Of the amount appropriated in fiscal year
2019, $500,000 is for a grant to the city of
Minnetonka for a high-risk, high-return jobs
retention and creation initiative to be
conducted by a local organization that
produces lactic acid/lactate, to help grow and
expand the bioeconomy in Minnesota. The
grant under this clause is not subject to the
limitations under Minnesota Statutes, section
116J.8731, subdivision 5, or the performance
goals and contractual obligations under
Minnesota Statutes, section 116J.8731,
subdivision 7.

(7) Of the amount appropriated in fiscal year
2019, $500,000 is for a loan to a paper mill in
Duluth to support the operation and
manufacture of packaging paper grades. The
company that owns the paper mill must spend
$15,000,000 on expansion activities by
December 31, 2019, in order to be eligible to
receive funds under this appropriation.
Appropriation funds may be used for the mill's
equipment, materials, supplies, and other
operating expenses. The commissioner of
employment and economic development shall
forgive a portion of the loan each year after
verification that the mill has retained 195
full-time jobs over a period of five years and
has satisfied other performance goals and
contractual obligations as required under
Minnesota Statutes, section 116J.8731.

(f) $8,500,000 each year is in fiscal year 2018
and $1,500,000 in fiscal year 2019 are
for the
Minnesota job creation fund under Minnesota
Statutes, section 116J.8748. Of this amount,
the commissioner of employment and
economic development may use up to three
percent for administrative expenses. This
appropriation is available until expended. In
fiscal year 2020 and beyond, the base amount
is $8,000,000. In fiscal year 2021 and beyond,
the base amount is $5,000,000.

(g) $1,647,000 each year is for contaminated
site cleanup and development grants under
Minnesota Statutes, sections 116J.551 to
116J.558. This appropriation is available until
spent. In fiscal year 2020 and beyond, the base
amount is $1,772,000.

(h) $12,000 each year is for a grant to the
Upper Minnesota Film Office.

(i) $163,000 each year is for the Minnesota
Film and TV Board. The appropriation in each
year is available only upon receipt by the
board of $1 in matching contributions of
money or in-kind contributions from nonstate
sources for every $3 provided by this
appropriation, except that each year up to
$50,000 is available on July 1 even if the
required matching contribution has not been
received by that date.

(j) $500,000 each year is from the general fund
for a grant to the Minnesota Film and TV
Board for the film production jobs program
under Minnesota Statutes, section 116U.26.
This appropriation is available until June 30,
2021.

(k) $139,000 each year is for a grant to the
Rural Policy and Development Center under
Minnesota Statutes, section 116J.421.

(l)(1) $1,300,000 each year is in fiscal year
2018 and $2,200,000 in fiscal year 2019 are

for the greater Minnesota business
development public infrastructure grant
program under Minnesota Statutes, section
116J.431. This appropriation is available until
spent. If the appropriation for either year is
insufficient, the appropriation for the other
year is available. In fiscal year 2020 and
beyond, the base amount is $1,787,000. Funds
available under this paragraph may be used
for site preparation of property owned and to
be used by private entities.

(2) Of the amounts appropriated, $1,600,000
in fiscal year 2018 is for a grant to the city of
Thief River Falls to support utility extensions,
roads, and other public improvements related
to the construction of a wholesale electronic
component distribution center at least 700,000
square feet in size and investing a minimum
of $200,000,000. Notwithstanding Minnesota
Statutes, section 116J.431, a local match is
not required. Grant funds are available from
July 1, 2017, to June 30, 2021.

(m) $876,000 the first year and $500,000 the
second year are for the Minnesota emerging
entrepreneur loan program under Minnesota
Statutes, section 116M.18. Funds available
under this paragraph are for transfer into the
emerging entrepreneur program special
revenue fund account created under Minnesota
Statutes, chapter 116M, and are available until
spent. Of this amount, up to four percent is for
administration and monitoring of the program.
In fiscal year 2020 and beyond, the base
amount is $1,000,000.

(n) $875,000 each year is for a grant to
Enterprise Minnesota, Inc. for the small
business growth acceleration program under
Minnesota Statutes, section 116O.115. This
is a onetime appropriation.

(o) $250,000 in fiscal year 2018 is for a grant
to the Minnesota Design Center at the
University of Minnesota for the greater
Minnesota community design pilot project.

(p) $275,000 in fiscal year 2018 is from the
general fund to the commissioner of
employment and economic development for
a grant to Community and Economic
Development Associates (CEDA) for an
economic development study and analysis of
the effects of current and projected economic
growth in southeast Minnesota. CEDA shall
report on the findings and recommendations
of the study to the committees of the house of
representatives and senate with jurisdiction
over economic development and workforce
issues by February 15, 2019. All results and
information gathered from the study shall be
made available for use by cities in southeast
Minnesota by March 15, 2019. This
appropriation is available until June 30, 2020.

(q) $2,000,000 in fiscal year 2018 is for a
grant to Pillsbury United Communities for
construction and renovation of a building in
north Minneapolis for use as the "North
Market" grocery store and wellness center,
focused on offering healthy food, increasing
health care access, and providing job creation
and economic opportunities in one place for
children and families living in the area. To the
extent possible, Pillsbury United Communities
shall employ individuals who reside within a
five mile radius of the grocery store and
wellness center. This appropriation is not
available until at least an equal amount of
money is committed from nonstate sources.
This appropriation is available until the project
is completed or abandoned, subject to
Minnesota Statutes, section 16A.642.

(r) $1,425,000 each year is for the business
development competitive grant program. Of
this amount, up to five percent is for
administration and monitoring of the business
development competitive grant program. All
grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.

(s) $875,000 each year is for the host
community economic development grant
program established in Minnesota Statutes,
section 116J.548.

(t) $700,000 each year is from the remediation
fund for contaminated site cleanup and
development grants under Minnesota Statutes,
sections 116J.551 to 116J.558. This
appropriation is available until spent.

(u) $161,000 each year is from the workforce
development fund for a grant to the Rural
Policy and Development Center. This is a
onetime appropriation.

(v) $300,000 each year is from the workforce
development fund for a grant to Enterprise
Minnesota, Inc. This is a onetime
appropriation.

(w) $50,000 in fiscal year 2018 is from the
workforce development fund for a grant to
Fighting Chance for behavioral intervention
programs for at-risk youth.

(x) $1,350,000 each year is from the
workforce development fund for job training
grants under Minnesota Statutes, section
116L.42.

(y)(1) $519,000 in fiscal year 2018 is and
$750,000 in fiscal year 2019 are
for grants to
local communities to increase the supply of
quality child care providers in order to support
economic development. At least 60 percent of
grant funds must go to communities located
outside of the seven-county metropolitan area,
as defined under Minnesota Statutes, section
473.121, subdivision 2. Grant recipients must
obtain a 50 percent nonstate match to grant
funds in either cash or in-kind contributions.
Grant funds available under this paragraph
must be used to implement solutions to reduce
the child care shortage in the state including
but not limited to funding for child care
business start-ups or expansions, training,
facility modifications or improvements
required for licensing, and assistance with
licensing and other regulatory requirements.
In awarding grants, the commissioner must
give priority to communities that have
documented a shortage of child care providers
in the area. For fiscal year 2019, each grant
recipient must target at least one-half of the
recipient's grant funding to child care
providers who have not previously received
funding under this program. The base amount
in fiscal year 2020 and beyond is $0.

(2) Within one year of receiving grant funds,
grant recipients must report to the
commissioner on the outcomes of the grant
program including but not limited to the
number of new providers, the number of
additional child care provider jobs created, the
number of additional child care slots, and the
amount of local funds invested.

(3) By January 1 of each year, starting in 2019,
the commissioner must report to the standing
committees of the legislature having
jurisdiction over child care and economic
development on the outcomes of the program
to date.

(z) $319,000 in fiscal year 2018 is from the
general fund for a grant to the East Phillips
Improvement Coalition to create the East
Phillips Neighborhood Institute (EPNI) to
expand culturally tailored resources that
address small business growth and create
green jobs. The grant shall fund the
collaborative work of Tamales y Bicicletas,
Little Earth of the United Tribes, a nonprofit
serving East Africans, and other coalition
members towards developing EPNI as a
community space to host activities including,
but not limited to, creation and expansion of
small businesses, culturally specific
entrepreneurial activities, indoor urban
farming, job training, education, and skills
development for residents of this low-income,
environmental justice designated
neighborhood. Eligible uses for grant funds
include, but are not limited to, planning and
start-up costs, staff and consultant costs,
building improvements, rent, supplies, utilities,
vehicles, marketing, and program activities.
The commissioner shall submit a report on
grant activities and quantifiable outcomes to
the committees of the house of representatives
and the senate with jurisdiction over economic
development by December 15, 2020. This
appropriation is available until June 30, 2020.

(aa) $150,000 the first year is from the
renewable development account in the special
revenue fund established in Minnesota
Statutes, section 116C.779, subdivision 1, to
conduct the biomass facility closure economic
impact study.

(bb)(1)$300,000 in fiscal year 2018 is for a
grant to East Side Enterprise Center (ESEC)
to expand culturally tailored resources that
address small business growth and job
creation. This appropriation is available until
June 30, 2020. The appropriation shall fund
the work of African Economic Development
Solutions, the Asian Economic Development
Association, the Dayton's Bluff Community
Council, and the Latino Economic
Development Center in a collaborative
approach to economic development that is
effective with smaller, culturally diverse
communities that seek to increase the
productivity and success of new immigrant
and minority populations living and working
in the community. Programs shall provide
minority business growth and capacity
building that generate wealth and jobs creation
for local residents and business owners on the
East Side of St. Paul.

(2) In fiscal year 2019 ESEC shall use funds
to share its integrated service model and
evolving collaboration principles with civic
and economic development leaders in greater
Minnesota communities which have diverse
populations similar to the East Side of St. Paul.
ESEC shall submit a report of activities and
program outcomes, including quantifiable
measures of success annually to the house of
representatives and senate committees with
jurisdiction over economic development.

(cc) $150,000 in fiscal year 2018 is for a grant
to Mille Lacs County for the purpose of
reimbursement grants to small resort
businesses located in the city of Isle with less
than $350,000 in annual revenue, at least four
rental units, which are open during both
summer and winter months, and whose
business was adversely impacted by a decline
in walleye fishing on Lake Mille Lacs.

(dd)(1) $250,000 in fiscal year 2018 is for a
grant to the Small Business Development
Center hosted at Minnesota State University,
Mankato, for a collaborative initiative with
the Regional Center for Entrepreneurial
Facilitation. Funds available under this section
must be used to provide entrepreneur and
small business development direct professional
business assistance services in the following
counties in Minnesota: Blue Earth, Brown,
Faribault, Le Sueur, Martin, Nicollet, Sibley,
Watonwan, and Waseca. For the purposes of
this section, "direct professional business
assistance services" must include, but is not
limited to, pre-venture assistance for
individuals considering starting a business.
This appropriation is not available until the
commissioner determines that an equal amount
is committed from nonstate sources. Any
balance in the first year does not cancel and
is available for expenditure in the second year.

(2) Grant recipients shall report to the
commissioner by February 1 of each year and
include information on the number of
customers served in each county; the number
of businesses started, stabilized, or expanded;
the number of jobs created and retained; and
business success rates in each county. By April
1 of each year, the commissioner shall report
the information submitted by grant recipients
to the chairs of the standing committees of the
house of representatives and the senate having
jurisdiction over economic development
issues.

(ee) $500,000 in fiscal year 2018 is for the
central Minnesota opportunity grant program
established under Minnesota Statutes, section
116J.9922. This appropriation is available until
June 30, 2022.

(ff) $25,000 each year is for the administration
of state aid for the Destination Medical Center
under Minnesota Statutes, sections 469.40 to
469.47.

Sec. 7.

Laws 2017, chapter 94, article 1, section 2, subdivision 3, is amended to read:


Subd. 3.

Workforce Development

$
31,498,000
$
30,231,000
Appropriations by Fund
General
$6,239,000
$5,889,000
Workforce
Development
$25,259,000
$24,342,000

(a) $500,000 each year is for the
youth-at-work competitive grant program
under Minnesota Statutes, section 116L.562.
Of this amount, up to five percent is for
administration and monitoring of the youth
workforce development competitive grant
program. All grant awards shall be for two
consecutive years. Grants shall be awarded in
the first year. In fiscal year 2020 and beyond,
the base amount is $750,000.

(b) $250,000 each year is for pilot programs
in the workforce service areas to combine
career and higher education advising.

(c) $500,000 each year is for rural career
counseling coordinator positions in the
workforce service areas and for the purposes
specified in Minnesota Statutes, section
116L.667. The commissioner of employment
and economic development, in consultation
with local workforce investment boards and
local elected officials in each of the service
areas receiving funds, shall develop a method
of distributing funds to provide equitable
services across workforce service areas.

(d) $1,000,000 each year is for a grant to the
Construction Careers Foundation for the
construction career pathway initiative to
provide year-round educational and
experiential learning opportunities for teens
and young adults under the age of 21 that lead
to careers in the construction industry. This is
a onetime appropriation. Grant funds must be
used to:

(1) increase construction industry exposure
activities for middle school and high school
youth, parents, and counselors to reach a more
diverse demographic and broader statewide
audience. This requirement includes, but is
not limited to, an expansion of programs to
provide experience in different crafts to youth
and young adults throughout the state;

(2) increase the number of high schools in
Minnesota offering construction classes during
the academic year that utilize a multicraft
curriculum;

(3) increase the number of summer internship
opportunities;

(4) enhance activities to support graduating
seniors in their efforts to obtain employment
in the construction industry;

(5) increase the number of young adults
employed in the construction industry and
ensure that they reflect Minnesota's diverse
workforce; and

(6) enhance an industrywide marketing
campaign targeted to youth and young adults
about the depth and breadth of careers within
the construction industry.

Programs and services supported by grant
funds must give priority to individuals and
groups that are economically disadvantaged
or historically underrepresented in the
construction industry, including but not limited
to women, veterans, and members of minority
and immigrant groups.

(e) $1,539,000 each year from the general fund
and $4,604,000 each year from the workforce
development fund are for the Pathways to
Prosperity adult workforce development
competitive grant program. Of this amount,
up to four percent is for administration and
monitoring of the program. When awarding
grants under this paragraph, the commissioner
of employment and economic development
may give preference to any previous grantee
with demonstrated success in job training and
placement for hard-to-train individuals. In
fiscal year 2020 and beyond, the general fund
base amount for this program is $4,039,000.

(f) $750,000 each year is for a competitive
grant program to provide grants to
organizations that provide support services for
individuals, such as job training, employment
preparation, internships, job assistance to
fathers, financial literacy, academic and
behavioral interventions for low-performing
students, and youth intervention. Grants made
under this section must focus on low-income
communities, young adults from families with
a history of intergenerational poverty, and
communities of color. Of this amount, up to
four percent is for administration and
monitoring of the program. In fiscal year 2020
and beyond, the base amount is $1,000,000.

(g) $500,000 each year is for the women and
high-wage, high-demand, nontraditional jobs
grant program under Minnesota Statutes,
section 116L.99. Of this amount, up to five
percent is for administration and monitoring
of the program. In fiscal year 2020 and
beyond, the base amount is $750,000.

(h) $500,000 each year is for a competitive
grant program for grants to organizations
providing services to relieve economic
disparities in the Southeast Asian community
through workforce recruitment, development,
job creation, assistance of smaller
organizations to increase capacity, and
outreach. Of this amount, up to five percent
is for administration and monitoring of the
program. In fiscal year 2020 and beyond, the
base amount is $1,000,000.

(i) $250,000 each year is for a grant to the
American Indian Opportunities and
Industrialization Center, in collaboration with
the Northwest Indian Community
Development Center, to reduce academic
disparities for American Indian students and
adults. This is a onetime appropriation. The
grant funds may be used to provide:

(1) student tutoring and testing support
services;

(2) training in information technology;

(3) assistance in obtaining a GED;

(4) remedial training leading to enrollment in
a postsecondary higher education institution;

(5) real-time work experience in information
technology fields; and

(6) contextualized adult basic education.

After notification to the legislature, the
commissioner may transfer this appropriation
to the commissioner of education.

(j) $100,000 each year is for the getting to
work grant program. This is a onetime
appropriation and is available until June 30,
2021.

(k) $525,000 each year is from the workforce
development fund for a grant to the YWCA
of Minneapolis to provide economically
challenged individuals the job skills training,
career counseling, and job placement
assistance necessary to secure a child
development associate credential and to have
a career path in early childhood education.
This is a onetime appropriation.

(l) $1,350,000 each year is from the workforce
development fund for a grant to the Minnesota
High Tech Association to support
SciTechsperience, a program that supports
science, technology, engineering, and math
(STEM) internship opportunities for two- and
four-year college students and graduate
students in their field of study. The internship
opportunities must match students with paid
internships within STEM disciplines at small,
for-profit companies located in Minnesota,
having fewer than 250 employees worldwide.
At least 300 students must be matched in the
first year and at least 350 students must be
matched in the second year. No more than 15
percent of the hires may be graduate students.
Selected hiring companies shall receive from
the grant 50 percent of the wages paid to the
intern, capped at $2,500 per intern. The
program must work toward increasing the
participation of women or other underserved
populations. This is a onetime appropriation.

(m) $450,000 each year is from the workforce
development fund for grants to Minnesota
Diversified Industries, Inc. to provide
progressive development and employment
opportunities for people with disabilities. This
is a onetime appropriation.

(n) $500,000 each year is from the workforce
development fund for a grant to Resource, Inc.
to provide low-income individuals career
education and job skills training that are fully
integrated with chemical and mental health
services. This is a onetime appropriation.

(o) $750,000 each year is from the workforce
development fund for a grant to the Minnesota
Alliance of Boys and Girls Clubs to administer
a statewide project of youth job skills and
career development. This project, which may
have career guidance components including
health and life skills, is designed to encourage,
train, and assist youth in early access to
education and job-seeking skills, work-based
learning experience including career pathways
in STEM learning, career exploration and
matching, and first job placement through
local community partnerships and on-site job
opportunities. This grant requires a 25 percent
match from nonstate resources. This is a
onetime appropriation.

(p) $215,000 each year is from the workforce
development fund for grants to Big Brothers,
Big Sisters of the Greater Twin Cities for
workforce readiness, employment exploration,
and skills development for youth ages 12 to
21. The grant must serve youth in the Twin
Cities, Central Minnesota, and Southern
Minnesota Big Brothers, Big Sisters chapters.
This is a onetime appropriation.

(q) $250,000 each year is from the workforce
development fund for a grant to YWCA St.
Paul to provide job training services and
workforce development programs and
services, including job skills training and
counseling. This is a onetime appropriation.

(r) $1,000,000 each year is from the workforce
development fund for a grant to EMERGE
Community Development, in collaboration
with community partners, for services
targeting Minnesota communities with the
highest concentrations of African and
African-American joblessness, based on the
most recent census tract data, to provide
employment readiness training, credentialed
training placement, job placement and
retention services, supportive services for
hard-to-employ individuals, and a general
education development fast track and adult
diploma program. This is a onetime
appropriation.

(s) $1,000,000 each year is from the workforce
development fund for a grant to the
Minneapolis Foundation for a strategic
intervention program designed to target and
connect program participants to meaningful,
sustainable living-wage employment. This is
a onetime appropriation.

(t) $750,000 each year is from the workforce
development fund for a grant to Latino
Communities United in Service (CLUES) to
expand culturally tailored programs that
address employment and education skill gaps
for working parents and underserved youth by
providing new job skills training to stimulate
higher wages for low-income people, family
support systems designed to reduce
intergenerational poverty, and youth
programming to promote educational
advancement and career pathways. At least
50 percent of this amount must be used for
programming targeted at greater Minnesota.
This is a onetime appropriation.

(u) $600,000 each year is from the workforce
development fund for a grant to Ujamaa Place
for job training, employment preparation,
internships, education, training in the
construction trades, housing, and
organizational capacity building. This is a
onetime appropriation.

(v) $1,297,000 in the first year and $800,000
in the second year are from the workforce
development fund for performance grants
under Minnesota Statutes, section 116J.8747,
to Twin Cities R!SE to provide training to
hard-to-train individuals. Of the amounts
appropriated, $497,000 in fiscal year 2018 is
for a grant to Twin Cities R!SE, in
collaboration with Metro Transit and Hennepin
Technical College for the Metro Transit
technician training program. This is a onetime
appropriation and funds are available until
June 30, 2020.

(w) $230,000 in fiscal year 2018 is from the
workforce development fund for a grant to the
Bois Forte Tribal Employment Rights Office
(TERO) for an American Indian workforce
development training pilot project. This is a
onetime appropriation and is available until
June 30, 2019. Funds appropriated the first
year are available for use in the second year
of the biennium.

(x) $40,000 in fiscal year 2018 is from the
workforce development fund for a grant to the
Cook County Higher Education Board to
provide educational programming and
academic support services to remote regions
in northeastern Minnesota. This appropriation
is in addition to other funds previously
appropriated to the board.

(y) $250,000 each year is from the workforce
development fund for a grant to Bridges to
Healthcare to provide career education,
wraparound support services, and job skills
training in high-demand health care fields to
low-income parents, nonnative speakers of
English, and other hard-to-train individuals,
helping families build secure pathways out of
poverty while also addressing worker
shortages in one of Minnesota's most
innovative industries. Funds may be used for
program expenses, including, but not limited
to, hiring instructors and navigators; space
rental; and supportive services to help
participants attend classes, including assistance
with course fees, child care, transportation,
and safe and stable housing. In addition, up to
five percent of grant funds may be used for
Bridges to Healthcare's administrative costs.
This is a onetime appropriation and is
available until June 30, 2020.

(z) $500,000 each year is from the workforce
development fund for a grant to the Nonprofits
Assistance Fund to provide capacity-building
grants to small, culturally specific
organizations that primarily serve historically
underserved cultural communities. Grants may
only be awarded to nonprofit organizations
that have an annual organizational budget of
less than $500,000 and are culturally specific
organizations that primarily serve historically
underserved cultural communities. Grant funds
awarded must be used for:

(1) organizational infrastructure improvement,
including developing database management
systems and financial systems, or other
administrative needs that increase the
organization's ability to access new funding
sources;

(2) organizational workforce development,
including hiring culturally competent staff,
training and skills development, and other
methods of increasing staff capacity; or

(3) creation or expansion of partnerships with
existing organizations that have specialized
expertise in order to increase the capacity of
the grantee organization to improve services
for the community. Of this amount, up to five
percent may be used by the Nonprofits
Assistance Fund for administration costs and
providing technical assistance to potential
grantees. This is a onetime appropriation.

(aa) $4,050,000 each year is from the
workforce development fund for the
Minnesota youth program under Minnesota
Statutes, sections 116L.56 and 116L.561.

(bb) $1,000,000 each year is from the
workforce development fund for the
youthbuild program under Minnesota Statutes,
sections 116L.361 to 116L.366.

(cc) $3,348,000 each year is from the
workforce development fund for the "Youth
at Work" youth workforce development
competitive grant program. Of this amount,
up to five percent is for administration and
monitoring of the youth workforce
development competitive grant program. All
grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.

(dd) $500,000 each year is from the workforce
development fund for the Opportunities
Industrialization Center programs.

(ee) $750,000 each year is from the workforce
development fund for a grant to Summit
Academy OIC to expand its contextualized
GED and employment placement program.
This is a onetime appropriation.

(ff) $500,000 each year is from the workforce
development fund for a grant to
Goodwill-Easter Seals Minnesota and its
partners. The grant shall be used to continue
the FATHER Project in Rochester, Park
Rapids, St. Cloud, Minneapolis, and the
surrounding areas to assist fathers in
overcoming barriers that prevent fathers from
supporting their children economically and
emotionally. This is a onetime appropriation.

(gg) $150,000 each year is from the workforce
development fund for displaced homemaker
programs under Minnesota Statutes, section
116L.96. The commissioner shall distribute
the funds to existing nonprofit and state
displaced homemaker programs. This is a
onetime appropriation.

(hh)(1) $150,000 in fiscal year 2018 is from
the workforce development fund for a grant
to Anoka County to develop and implement
a pilot program to increase competitive
employment opportunities for transition-age
youth ages 18 to 21.

(2) The competitive employment for
transition-age youth pilot program shall
include career guidance components, including
health and life skills, to encourage, train, and
assist transition-age youth in job-seeking
skills, workplace orientation, and job site
knowledge.

(3) In operating the pilot program, Anoka
County shall collaborate with schools,
disability providers, jobs and training
organizations, vocational rehabilitation
providers, and employers to build upon
opportunities and services, to prepare
transition-age youth for competitive
employment, and to enhance employer
connections that lead to employment for the
individuals served.

(4) Grant funds may be used to create an
on-the-job training incentive to encourage
employers to hire and train qualifying
individuals. A participating employer may
receive up to 50 percent of the wages paid to
the employee as a cost reimbursement for
on-the-job training provided.

(ii) $500,000 each year is from the workforce
development fund for rural career counseling
coordinator positions in the workforce service
areas and for the purposes specified in
Minnesota Statutes, section 116L.667. The
commissioner of employment and economic
development, in consultation with local
workforce investment boards and local elected
officials in each of the service areas receiving
funds, shall develop a method of distributing
funds to provide equitable services across
workforce service areas.

(jj) In calendar year 2017, the public utility
subject to Minnesota Statutes, section
116C.779, must withhold $1,000,000 from the
funds required to fulfill its financial
commitments under Minnesota Statutes,
section 116C.779, subdivision 1, and pay such
amounts to the commissioner of employment
and economic development for deposit in the
Minnesota 21st century fund under Minnesota
Statutes, section 116J.423.

(kk) $350,000 in fiscal year 2018 is for a grant
to AccessAbility Incorporated to provide job
skills training to individuals who have been
released from incarceration for a felony-level
offense and are no more than 12 months from
the date of release. AccessAbility Incorporated
shall annually report to the commissioner on
how the money was spent and the results
achieved. The report must include, at a
minimum, information and data about the
number of participants; participant
homelessness, employment, recidivism, and
child support compliance; and training
provided to program participants.

Sec. 8.

Laws 2017, chapter 94, article 1, section 4, subdivision 3, is amended to read:


Subd. 3.

Labor Standards and Apprenticeship

3,645,000
3,668,000
3,868,000
Appropriations by Fund
General
1,776,000
1,790,000
1,990,000
Workforce
Development
1,869,000
1,878,000

(a) $500,000 each year is from the general
fund
in fiscal year 2018 and $700,000 in fiscal
year 2019 are
for wage theft prevention under
the division of labor standards.

(b) $100,000 each year is from the workforce
development fund for labor education and
advancement program grants under Minnesota
Statutes, section 178.11, to expand and
promote registered apprenticeship training for
minorities and women.

(c) $300,000 each year is from the workforce
development fund for the PIPELINE program.

(d) $200,000 each year is from the workforce
development fund for grants to the
Construction Careers Foundation for the
Helmets to Hardhats Minnesota initiative.
Grant funds must be used to recruit, retain,
assist, and support National Guard, reserve,
and active duty military members' and
veterans' participation into apprenticeship
programs registered with the Department of
Labor and Industry and connect them with
career training and employment in the building
and construction industry. The recruitment,
selection, employment, and training must be
without discrimination due to race, color,
creed, religion, national origin, sex, sexual
orientation, marital status, physical or mental
disability, receipt of public assistance, or age.
This is a onetime appropriation.

(e) $1,029,000 each year is from the workforce
development fund for the apprenticeship
program under Minnesota Statutes, chapter
178.

(f) $150,000 each year is from the workforce
development fund for prevailing wage
enforcement.

Sec. 9.

Laws 2017, chapter 94, article 1, section 4, subdivision 5, is amended to read:


Subd. 5.

General Support

6,239,000
6,539,000
Appropriations by Fund
Workforce
Development Fund
200,000
500,000
Workers'
Compensation
6,039,000
6,039,000

(a) Except as provided in paragraphs (b) and
(c), this appropriation is from the workers'
compensation fund.

(b) $200,000 in fiscal year 2018 is from the
workforce development fund for the
commissioner of labor and industry to convene
and collaborate with stakeholders as provided
under Minnesota Statutes, section 175.46,
subdivision 3
, and to develop youth skills
training competencies for approved
occupations. This is a onetime appropriation.

(c) $500,000 in fiscal year 2019 is from the
workforce development fund to administer the
youth skills training program under Minnesota
Statutes, section 175.46. The commissioner
shall award up to five grants each year to local
partnerships located throughout the state, not
to exceed $100,000 per local partnership grant.
The commissioner may use a portion of this
appropriation for administration of the grant
program. The base amount for this program
is $500,000 $750,000 each year beginning in
fiscal year 2020.

ARTICLE 6

ECONOMIC DEVELOPMENT

Section 1.

Minnesota Statutes 2017 Supplement, section 298.227, is amended to read:


298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by the
commissioner of Iron Range resources and rehabilitation in a separate taconite economic
development fund for each taconite and direct reduced ore producer. Money from the fund
for each producer shall be released by the commissioner after review by a joint committee
consisting of an equal number of representatives of the salaried employees and the
nonsalaried production and maintenance employees of that producer. The District 11 director
of the United States Steelworkers of America, on advice of each local employee president,
shall select the employee members. In nonorganized operations, the employee committee
shall be elected by the nonsalaried production and maintenance employees. The review
must be completed no later than six months after the producer presents a proposal for
expenditure of the funds to the committee. The funds held pursuant to this section may be
released only for workforce development and associated public facility improvement,
concurrent reclamation, or for acquisition of plant and stationary mining equipment and
facilities for the producer or for research and development in Minnesota on new mining, or
taconite, iron, or steel production technology, but only if the producer provides a matching
expenditure equal to the amount of the distribution to be used for the same purpose beginning
with distributions in 2014. Effective for proposals for expenditures of money from the fund
beginning May 26, 2007, the commissioner may not release the funds before the next
scheduled meeting of the board
. If a proposed expenditure is not approved by the
commissioner, after consultation with the advisory board, the funds must be deposited in
the Taconite Environmental Protection Fund under sections 298.222 to 298.225. If a taconite
production facility is sold after operations at the facility had ceased, any money remaining
in the fund for the former producer may be released to the purchaser of the facility on the
terms otherwise applicable to the former producer under this section. If a producer fails to
provide matching funds for a proposed expenditure within six months after the commissioner
approves release of the funds, the funds are available for release to another producer in
proportion to the distribution provided and under the conditions of this section
may be
released by the commissioner for deposit in the taconite area environmental protection fund
created in section 298.223
. Any portion of the fund which is not released by the commissioner
within one year of its deposit in the fund shall be divided between distributed to the taconite
environmental protection fund created in section 298.223 and the Douglas J. Johnson
economic protection trust fund created in section 298.292 for placement in their respective
special accounts. Two-thirds of the unreleased funds shall be distributed to the taconite
environmental protection fund and one-third to the Douglas J. Johnson economic protection
trust fund
.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 2.

Minnesota Statutes 2016, section 298.28, subdivision 9a, is amended to read:


Subd. 9a.

Taconite economic development fund.

(a) 25.1 cents per ton for distributions
in 2002 and thereafter must be paid to the taconite economic development fund. No
distribution shall be made under this paragraph in 2004 or any subsequent year in which
total industry production falls below 30 million tons. Distribution shall only be made to a
Minnesota taconite pellet producer's fund under section 298.227 if the producer timely pays
its tax under section 298.24 by the dates provided under section 298.27, or pursuant to the
due dates provided by an administrative agreement with the commissioner.

(b) An amount equal to 50 percent of the tax under section 298.24 for concentrate sold
in the form of pellet chips and fines not exceeding 5/16 inch in size and not including crushed
pellets shall be paid to the taconite economic development fund. The amount paid shall not
exceed $700,000 annually for all companies Minnesota taconite pellet producers. If the
initial amount to be paid to the fund exceeds this amount, each company's Minnesota taconite
pellet producer's
payment shall be prorated so the total does not exceed $700,000.

EFFECTIVE DATE.

This section is effective retroactively from December 31, 2016.

Sec. 3. TRANSFER 2018 DISTRIBUTION ONLY.

For the 2018 distribution, the fund established under Minnesota Statutes, section 298.28,
subdivision 7, shall receive ten cents per ton of any excess of the balance remaining after
distribution of amounts required under Minnesota Statutes, section 298.28, subdivision 6.

EFFECTIVE DATE.

This section is effective for the 2018 distribution, and the transfer
must be made within ten days of the August 2018 payment.

Sec. 4. DISLOCATED WORKER RAPID RESPONSE ACTIVITY.

Notwithstanding anything to the contrary, of the money appropriated to the Job Skills
Partnership Board for the purposes of Minnesota Statutes, section 116L.17, under Minnesota
Statutes, section 116L.20, subdivision 2, at least $650,000 in fiscal year 2019 must be used
for rapid response activities under Minnesota Statutes, section 116L.17, subdivision 10, to
address the substantial anticipated job losses at the Electrolux plant in St. Cloud. These
services shall be provided by Career Solutions. Grant funds may be used for, but are not
limited to, GED programs, English language courses, computer literacy efforts, and training
in the manufacturing and construction trades. In addition, the commissioner of employment
and economic development is directed to take all necessary steps, including application for
any required federal waivers, to begin providing services to affected workers before
December 31, 2018.

Sec. 5. USE OF LOCAL GOVERNMENT LOAN REPAYMENT FUNDS.

Notwithstanding Minnesota Statutes, section 116J.8731, and any law to the contrary, a
home rule charter or statutory city, county, or town may, before July 1, 2018, commit money
received from the repayment of funds awarded under Minnesota Statutes, section 116J.8731,
to a business revolving loan fund partially funded by the federal government. Once
committed, funds may be used for any purpose allowed by the federal program.

EFFECTIVE DATE.

This section is effective retroactively from January 1, 2007.

Sec. 6. REVISOR'S INSTRUCTION; MIF NAME CHANGE TO N-SODA.

In Minnesota Statutes, the revisor of statutes shall change the term "Minnesota investment
fund" to "North Star Opportunity and Development Account" wherever it is apparent from
context that the term "Minnesota investment fund" refers to the program under Minnesota
Statutes, section 116J.8731.

ARTICLE 7

ENERGY

Section 1.

Minnesota Statutes 2017 Supplement, section 116C.779, subdivision 1, is
amended to read:


Subdivision 1.

Renewable development account.

(a) The renewable development
account is established as a separate account in the special revenue fund in the state treasury.
Appropriations and transfers to the account shall be credited to the account. Earnings, such
as interest, dividends, and any other earnings arising from assets of the account, shall be
credited to the account. Funds remaining in the account at the end of a fiscal year are not
canceled to the general fund but remain in the account until expended. The account shall
be administered by the commissioner of management and budget as provided under this
section.

(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
plant must transfer all funds in the renewable development account previously established
under this subdivision and managed by the public utility to the renewable development
account established in paragraph (a). Funds awarded to grantees in previous grant cycles
that have not yet been expended and unencumbered funds required to be paid in calendar
year 2017 under paragraphs (e) and (f) and (g), and sections 116C.7792 and 216C.41, are
not subject to transfer under this paragraph.

(c) Except as provided in subdivision 1a, Beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Prairie Island and Monticello
nuclear generating plant plants must transfer to the renewable development account $500,000
each year for each dry cask containing spent fuel that is located at the Prairie Island power
plant for
$20,000,000 each year the either plant is in operation, and $7,500,000 each year
the plant is not in operation
, if ordered by the commission pursuant to paragraph (i). (h),
$7,500,000 each year the Prairie Island plant is not in operation and $5,250,000 each year
the Monticello plant is not in operation.
The fund transfer must be made if nuclear waste is
stored in a dry cask at the independent spent-fuel storage facility at Prairie Island or
Monticello
for any part of a year.

(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Monticello nuclear generating
plant must transfer to the renewable development account $350,000 each year for each dry
cask containing spent fuel that is located at the Monticello nuclear power plant for each
year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered
by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear
waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
any part of a year.

(e) (d) Each year, the public utility shall withhold from the funds transferred to the
renewable development account under paragraphs paragraph (c) and (d) the amount necessary
to pay its obligations under paragraphs (e), (f) and (g), (k), and (n), and sections 116C.7792
and 216C.41, for that calendar year.

(f) (e) If the commission approves a new or amended power purchase agreement, the
termination of a power purchase agreement, or the purchase and closure of a facility under
section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
the public utility subject to this section shall enter into a contract with the city in which the
poultry litter plant is located to provide grants to the city for the purposes of economic
development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
by the public utility from funds withheld from the transfer to the renewable development
account, as provided in paragraphs (b) and (e) (d).

(g) (f) If the commission approves a new or amended power purchase agreement, or the
termination of a power purchase agreement under section 216B.2424, subdivision 9, with
an entity owned or controlled, directly or indirectly, by two municipal utilities located north
of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
grant contract with such entity to provide $6,800,000 per year for five years, commencing
30 days after the commission approves the new or amended power purchase agreement, or
the termination of the power purchase agreement, and on each June 1 thereafter through
2021, to assist the transition required by the new, amended, or terminated power purchase
agreement. The grant shall be paid by the public utility from funds withheld from the transfer
to the renewable development account as provided in paragraphs (b) and (e) (d).

(h) (g) The collective amount paid under the grant contracts awarded under paragraphs
(e) and (f) and (g) is limited to the amount deposited into the renewable development account,
and its predecessor, the renewable development account, established under this section, that
was not required to be deposited into the account under Laws 1994, chapter 641, article 1,
section 10.

(i) (h) After discontinuation of operation of the Prairie Island nuclear plant or the
Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the
discontinued facility, the commission shall require the public utility to pay $7,500,000 for
the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello
facility for any year in which the commission finds, by the preponderance of the evidence,
that the public utility did not make a good faith effort to remove the spent nuclear fuel stored
at the facility to a permanent or interim storage site out of the state. This determination shall
be made at least every two years.

(i) The public utility shall file annually with the commission a petition to recover all
funds required to be transferred or withheld under paragraphs (c) to (f) for the next year
through a rider mechanism. The commission shall approve a reasonable cost recovery
schedule for all such funds.

(j) On or before January 15 of each year, the public utility shall file a petition with the
commission setting forth the amounts withheld by the public utility the prior year under
paragraph (d) and the amount actually paid the prior year for obligations identified in
paragraph (d). If the amount actually paid is less than the amount withheld, the public utility
shall deduct the surplus from the amount withheld for the current year under paragraph (d).
If the amount actually paid is more than the amount withheld, the public utility shall add
the deficiency amount to the amount withheld for the current year under paragraph (d). Any
surplus remaining in the account after all programs identified in paragraph (d) are terminated
must be returned to the customers of the public utility.

(j) (k) Funds in the account may be expended only for any of the following purposes:

(1) to stimulate research and development of renewable electric energy technologies;

(2) to encourage grid modernization, including, but not limited to, projects that implement
electricity storage, load control, and smart meter technology; and

(3) to stimulate other innovative energy projects that reduce demand and increase system
efficiency and flexibility.

Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
from the utility that owns a nuclear-powered electric generating plant in this state or the
Prairie Island Indian community or its members.

The utility that owns a nuclear generating plant is eligible to apply for grants under this
subdivision.

(k) (l) For the purposes of paragraph (j) (k), the following terms have the meanings
given:

(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
(c), clauses (1), (2), (4), and (5); and

(2) "grid modernization" means:

(i) enhancing the reliability of the electrical grid;

(ii) improving the security of the electrical grid against cyberthreats and physical threats;
and

(iii) increasing energy conservation opportunities by facilitating communication between
the utility and its customers through the use of two-way meters, control technologies, energy
storage and microgrids, technologies to enable demand response, and other innovative
technologies.

(l) (m) A renewable development account advisory group that includes, among others,
representatives of the public utility and its ratepayers, and includes at least one representative
of the Prairie Island Indian community appointed by that community's tribal council, shall
develop recommendations on account expenditures. Members of the advisory group shall
be chosen by the public utility.
The advisory group must design a request for proposal and
evaluate projects submitted in response to a request for proposals. The advisory group must
utilize an independent third-party expert to evaluate proposals submitted in response to a
request for proposal, including all proposals made by the public utility. A request for proposal
for research and development under paragraph (j) (k), clause (1), may be limited to or include
a request to higher education institutions located in Minnesota for multiple projects authorized
under paragraph (j) (k), clause (1). The request for multiple projects may include a provision
that exempts the projects from the third-party expert review and instead provides for project
evaluation and selection by a merit peer review grant system. In the process of determining
request for proposal scope and subject and in evaluating responses to request for proposals,
the advisory group must strongly consider, where reasonable, potential benefit to Minnesota
citizens and businesses and the utility's ratepayers.

(n) The cost of acquiring the services of the independent third-party expert described in
paragraph (m) and any other reasonable costs incurred to administer the advisory group and
its actions as required by this section shall be paid from funds withheld by the public utility
under paragraph (d).

(m) (o) The advisory group shall submit funding recommendations to the public utility,
which has full and sole authority to determine which expenditures shall be submitted by
the advisory group to the legislature commission. The commission may approve proposed
expenditures, may disapprove proposed expenditures that it finds not to be in compliance
with this subdivision or otherwise not in the public interest, and may, if agreed to by the
public utility, modify proposed expenditures. The commission shall, by order, submit its
funding recommendations to the legislature as provided under paragraph (n) (p).

(n) (p) The commission shall present its recommended appropriations from the account
to the senate and house of representatives committees with jurisdiction over energy policy
and finance annually by February 15. Expenditures from the account must be appropriated
by law. In enacting appropriations from the account, the legislature:

(1) may approve or disapprove, but may not modify, the amount of an appropriation for
a project recommended by the commission; and

(2) may not appropriate money for a project the commission has not recommended
funding.

(o) (q) A request for proposal for renewable energy generation projects must, when
feasible and reasonable, give preference to projects that are most cost-effective for a particular
energy source.

(p) (r) The advisory group must annually, by February 15, report to the chairs and ranking
minority members of the legislative committees with jurisdiction over energy policy on
projects funded by the account under paragraph (k) for the prior year and all previous years.
The report must, to the extent possible and reasonable, itemize the actual and projected
financial benefit to the public utility's ratepayers of each project.

(s) By June 1, 2018, and each June 1 thereafter, the public utility that owns the Prairie
Island Nuclear Electric Generating Plant must submit to the commissioner of management
and budget an estimate of the amount the public utility will deposit into the account the
following January 15, based on the provisions of paragraphs (c) to (h) and any appropriations
made from the fund during the most recent legislative sessions.

(q) (t) By February 1 June 30, 2018, and each February 1 June 30 thereafter, the
commissioner of management and budget shall estimate the balance in the account as of
the following January 31, taking into account the balance in the account as of June 30 and
the information provided under paragraph (r). By July 15, 2018, and each July 15 thereafter,
the commissioner of management and budget
shall submit a written report regarding the
availability of funds in and obligations of the account to the chairs and ranking minority
members of the senate and house committees with jurisdiction over energy policy and
finance, the public utility, and the advisory group. If more than $15,000,000 is estimated
to be available in the account as of January 31, the advisory group must, by July 30, 2018,
and each July 30 thereafter, issue a request for proposals to initiate a grant cycle for the
purposes of paragraph (k).

(r) (u) A project receiving funds from the account must produce a written final report
that includes sufficient detail for technical readers and a clearly written summary for
nontechnical readers. The report must include an evaluation of the project's financial,
environmental, and other benefits to the state and the public utility's ratepayers.

(s) (v) Final reports, any mid-project status reports, and renewable development account
financial reports must be posted online on a public Web site designated by the commissioner
of commerce.

(t) (w) All final reports must acknowledge that the project was made possible in whole
or part by the Minnesota renewable development account, noting that the account is financed
by the public utility's ratepayers.

(u) (x) Of the amount in the renewable development account, priority must be given to
making the payments required under section 216C.417.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 2.

Minnesota Statutes 2017 Supplement, section 116C.7792, is amended to read:


116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.

The utility subject to section 116C.779 shall operate a program to provide solar energy
production incentives for solar energy systems of no more than a total aggregate nameplate
capacity of 20 40 kilowatts direct current per premises. The owner of a solar energy system
installed before June 1, 2018, is eligible to receive a production incentive under this section
for any additional solar energy systems constructed at the same customer location, provided
the aggregate capacity of all systems at the customer location does not exceed 40 kilowatts
.
The program shall be operated for eight consecutive calendar years commencing in 2014.
$5,000,000 shall be allocated in each of the first four years, $15,000,000 in the fifth year,
$10,000,000 in each of the sixth and seventh years, and $5,000,000 in the eighth year from
funds withheld from transfer to the renewable development account under section 116C.779,
subdivision 1, paragraphs (b) and (e) paragraph (d), and placed in a separate account for
the purpose of the solar production incentive program operated by the utility and not for
any other program or purpose. Any unspent amount allocated in the fifth year is available
until December 31 of the sixth year. Any unspent amount remaining at the end of an
allocation year must be transferred to the renewable development account or returned to
customers
. The solar system must be sized to less than 120 percent of the customer's on-site
annual energy consumption when combined with other distributed generation resources and
subscriptions provided under section 216B.1641 associated with the premise
. The production
incentive must be paid for ten years commencing with the commissioning of the system.
The utility must file a plan to operate the program with the commissioner of commerce.
The utility may not operate the program until it is approved by the commissioner. A change
to the program to include projects up to a nameplate capacity of 40 kilowatts or less does
not require the utility to file a plan with the commissioner. Any plan approved by the
commissioner of commerce must not provide an increased incentive scale over prior years
unless the commissioner demonstrates that changes in the market for solar energy facilities
require an increase.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 3.

[116C.7793] PRAIRIE ISLAND NET ZERO PROJECT.

Subdivision 1.

Program established.

The Prairie Island Net Zero Project is established
with the goal of the Prairie Island Indian Community developing an energy system that
results in net zero emissions.

Subd. 2.

Grant.

The commissioner of employment and economic development shall
enter into a grant contract with the Prairie Island Indian Community to provide $20,000,000
on July 1, 2018, and $5,000,000 each year thereafter for four years to stimulate research,
development, and implementation of renewable energy projects benefitting the Prairie Island
Indian Community or its members.

Subd. 3.

Plan; report.

The Prairie Island Indian Community shall file a plan with the
commissioner of employment and economic development no later than July 1, 2019,
describing the Prairie Island Net Zero Project elements and implementation strategy. The
Prairie Island Indian Community shall file a report on July 1, 2020, and each July 1 thereafter
through 2023, describing the progress made in implementing the project and the use of
funds expended.

Subd. 4.

Appropriation.

Notwithstanding section 116C.779, subdivision 1, paragraph
(k), $20,000,000 is appropriated in fiscal year 2019 and $5,000,000 is appropriated each
year in fiscal years 2020, 2021, 2022, and 2023, from the renewable development account
under section 116C.779, subdivision 1, to the commissioner of employment and economic
development for a grant to the Prairie Island Indian Community for the purposes of this
section. Any funds remaining at the end of a fiscal year do not cancel to the renewable
development account but remain available until spent. This subdivision expires upon the
last transfer of funds to the commissioner.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 4.

Minnesota Statutes 2016, section 216A.03, is amended by adding a subdivision to
read:


Subd. 10.

Offices.

The Public Utilities Commission's offices must be located in Virginia,
Minnesota.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 5.

Minnesota Statutes 2016, section 216B.16, is amended by adding a subdivision to
read:


Subd. 13a.

Pension rate base.

The commission must allow a public utility to include
in the rate base and recover from ratepayers the costs incurred to contribute to employee
pensions, including (1) accumulated contributions in excess of net periodic benefit costs,
and (2) contributions necessary to comply with the federal Pension Protection Act of 2006
and other applicable federal and state pension funding requirements. A public utility is
authorized to track for future recovery any unrecoverable return of pension rate base costs
and investments at the return on investment level established in the public utility's last
general rate case that have been incurred during the period between general rate cases.

Sec. 6.

Minnesota Statutes 2017 Supplement, section 216B.164, subdivision 5, is amended
to read:


Subd. 5.

Dispute; resolution.

(a) In the event of disputes a dispute between a qualifying
facility and
a public utility and a qualifying facility or a cooperative electric association that
has not elected to resolve disputes under subdivision 11
, either party may request a
determination of the issue by the commission. In any such determination, the burden of
proof shall be is on the public utility or cooperative electric association. The commission
in its order resolving each such dispute shall require payments to the prevailing party of the
prevailing party's costs, disbursements, and reasonable attorneys' fees, except that the
qualifying facility will be required to pay the costs, disbursements, and attorneys' fees of
the public utility or cooperative electric association only if the commission finds that the
claims of the qualifying facility in the dispute have been made in bad faith, or are a sham,
or are frivolous.

(b) Notwithstanding subdivisions 9 and 11, a qualifying facility over 20 megawatts may,
until December 31, 2022, request that the commission resolve a dispute with any utility,
including a cooperative electric association or municipal utility, under paragraph (a).

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 7.

Minnesota Statutes 2017 Supplement, section 216B.1691, subdivision 2f, is amended
to read:


Subd. 2f.

Solar energy standard.

(a) In addition to the requirements of subdivisions 2a
and 2b, each public utility shall generate or procure sufficient electricity generated by solar
energy to serve its retail electricity customers in Minnesota so that by the end of 2020, at
least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota is
generated by solar energy.

(b) For a public utility with more than 200,000 retail electric customers, at least ten
percent of the 1.5 percent goal must be met by solar energy generated by or procured from
solar photovoltaic devices with a nameplate capacity of 20 40 kilowatts or less.

(c) A public utility with between 50,000 and 200,000 retail electric customers:

(1) must meet at least ten percent of the 1.5 percent goal with solar energy generated by
or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts or
less; and

(2) may apply toward the ten percent goal in clause (1) individual customer subscriptions
of 40 kilowatts or less to a community solar garden program operated by the public utility
that has been approved by the commission.

(d) The solar energy standard established in this subdivision is subject to all the provisions
of this section governing a utility's standard obligation under subdivision 2a.

(e) It is an energy goal of the state of Minnesota that, by 2030, ten percent of the retail
electric sales in Minnesota be generated by solar energy.

(f) For the purposes of calculating the total retail electric sales of a public utility under
this subdivision, there shall be excluded retail electric sales to customers that are:

(1) an iron mining extraction and processing facility, including a scram mining facility
as defined in Minnesota Rules, part 6130.0100, subpart 16; or

(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board
manufacturer.

Those customers may not have included in the rates charged to them by the public utility
any costs of satisfying the solar standard specified by this subdivision.

(g) A public utility may not use energy used to satisfy the solar energy standard under
this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may
not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the
solar standard under this subdivision.

(h) Notwithstanding any law to the contrary, a solar renewable energy credit associated
with a solar photovoltaic device installed and generating electricity in Minnesota after
August 1, 2013, but before 2020 may be used to meet the solar energy standard established
under this subdivision.

(i) Beginning July 1, 2014, and each July 1 through 2020, each public utility shall file
a report with the commission reporting its progress in achieving the solar energy standard
established under this subdivision.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 8.

[216B.1697] CARBON REDUCTION FACILITIES; NUCLEAR ENERGY.

Subdivision 1.

Qualifying facilities.

An existing large electric generating power plant,
as defined in section 216B.2421, subdivision 2, clause (1), employing nuclear technology
to generate electricity qualifies for designation as a carbon reduction facility as provided in
this section.

Subd. 2.

Proposal submission.

(a) A public utility may submit a proposal to the
commission for designation of a qualifying facility as a carbon reduction facility under this
section. The proposal must be filed within a public utility's new resource plan filing no
earlier than February 1, 2019. The proposal shall include:

(1) a showing that the facility meets the requirements of subdivision 1;

(2) a proposed statement of the total expected costs, including, but not limited to, capital
investments and operation and maintenance costs associated with the operation of the facility.
The total expected costs shall cover a period not to exceed the planning period of the public
utility's new resource plan;

(3) details about all costs currently included in rates, current operating costs if different
than those currently included in rates, and an evaluation of the utility's forecasted costs
prepared by an independent evaluator; and

(4) an analysis of how the proposed capital investments and operation and maintenance
costs would impact rates if that impact is different than any described in the utility's most
recently filed resource plan.

(b) If the information submitted in the original proposal changes because it was unknown
and not capable of being known at the time of the original proposal, a utility may at any
time file additional proposals for the same facility.

(c) The proposal may ask the commission to establish a sliding scale rate-of-return
mechanism for the capital investments to provide an additional incentive for the utility to
complete the project at or under the proposed costs.

Subd. 3.

Proposal approval.

(a) The commission shall approve, reject, or modify the
proposed designation of the facility and the total expected costs submitted by the public
utility. The commission shall make a final determination on the proposed designation
concurrent with its order in the resource plan, or sooner, should the commission determine
that it is in the public interest.

(b) When conducting the review in paragraph (a), the commission shall allow intervention
by the Department of Commerce, the Office of the Attorney General, ratepayer advocates,
the Prairie Island and Monticello communities, and other interested parties. The public
utility shall pay the costs of any nuclear expert retained by the Department of Commerce.

(c) To the extent the commission modifies the proposal, the utility may choose whether
to accept the modifications. If the utility does not accept the modifications, the commission
shall deem the proposal withdrawn.

(d) With respect to any carbon reduction facility, the approval shall constitute a finding
of prudency for the total expected costs contained in the proposal, meaning that the utility
shall be entitled to recover, through a subsequent rate case, any actual costs not in excess
of the total expected costs provided in its proposal for designation as a carbon reduction
facility.

(e) Upon approval of a proposed designation of a facility and the total expected costs
submitted by the utility, the utility shall provide biennial updates to the commission regarding
its progress with respect to adhering to the approved costs. The commission may issue
orders it deems necessary to ensure that the carbon reduction facility remains cost-effective
for customers and financially viable for the utility.

Sec. 9.

[216C.419] RESIDENTIAL BIOMASS HEATING SYSTEM GRANT
PROGRAM.

Subdivision 1.

Definition.

For purposes of this section, the following definitions have
the meanings given.

(a) "Homeowner" means the owner of a residential homestead, as defined in section
273.124, subdivision 1, paragraph (a), or the owner of an agricultural homestead, as defined
in section 273.13, subdivision 23, paragraph (a).

(b) "Residential biomass heating system" means:

(1) a pellet stove or wood heater, as defined in Code of Federal Regulations, title 40,
section 60.531; or

(2) a residential forced-air furnace or residential hydronic heater, as defined in Code of
Federal Regulations, title 40, section 60.5473.

Subd. 2.

Establishment.

A grant program is established under the Department of
Commerce to award grants to homeowners to fund the purchase and installation of a
residential biomass heating system.

Subd. 3.

Eligible expenditures.

(a) Grants awarded to a homeowner under this section
may be used to pay up to the lesser of 33 percent of the cost to purchase and install a
residential biomass heating system in the homeowner's residence, or $5,000.

(b) A grant must not be awarded under this section to a homeowner for a residential
biomass heating system that is not certified by the federal Environmental Protection Agency
as meeting the 2015 New Source Performance Standards for air emissions for these heating
systems, contained in Code of Federal Regulations, title 40, part 60, subparts AAA and
QQQQ, as applicable.

Subd. 4.

Application process.

A homeowner must submit an application to the
commissioner on a form prescribed by the commissioner. The commissioner must develop
administrative procedures governing the application and grant award process, and must
award grants on a first-come, first-served basis.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 10.

[216C.437] LOCAL GOVERNMENT EMERALD ASH BORER REMOVAL
GRANT PROGRAM.

Subdivision 1.

Establishment.

The Department of Commerce must establish a program
to:

(1) assist eligible local units of government collect and dispose of the wood waste created
when ash trees are removed from public land due to either (i) emerald ash borer infestation,
or (ii) an emerald ash borer management program;

(2) award grants to process the wood waste into usable biomass fuel, properly transport
the biomass fuel to an eligible district heating and cooling system cogeneration facility, and
use the biomass fuel to generate electricity and thermal energy; and

(3) reduce the biomass fuel costs passed through by an eligible heating and cooling
system cogeneration facility to the public utility that owns the Prairie Island nuclear
generating plant.

Subd. 2.

Eligibility.

In order to be eligible for the program under subdivision 1, an
applicant must be a district heating and cooling system cogeneration facility that:

(1) is located in the city of St. Paul;

(2) operates as a nonprofit entity;

(3) accepts wood waste from a local unit of government that is:

(i) located within the service area of the public utility that is subject to section 116C.779;

(ii) located in a county or portion of a county that has been designated by the
commissioner of agriculture as quarantined with respect to the transportation of woody
materials from ash trees due to demonstrated emerald ash borer infestation; and

(iii) responsible for the removal of diseased ash trees from public lands within its
jurisdiction; and

(4) uses biomass fuel to generate electricity and thermal energy.

Subd. 3.

Eligible expenditures.

(a) Grants may be awarded under this section to an
eligible recipient under subdivision 2 to:

(1) process into acceptable biomass fuel woody materials containing ash trees that have
been removed due to disease or implementation of an emerald ash borer management
program; or

(2) transport processed biomass fuel, woody materials infested by emerald ash borer,
and woody material removed under an emerald ash borer management program to a storage
location or to the district heating and cooling system cogeneration facility in downtown St.
Paul.

(b) Grant funds may be used to pay reasonable costs incurred by the Department of
Agriculture to administer this section.

(c) All funds awarded under paragraph (a) must reduce on a dollar-for-dollar basis the
charges billed by an eligible heating and cooling system cogeneration facility to the public
utility that owns the Prairie Island Nuclear Electric Generating Plant under the power
purchase agreement in effect on January 1, 2018. A heating and cooling system cogeneration
facility receiving a grant under this section must submit a monthly statement showing the
reduction in charges resulting from the requirement of this paragraph to the public utility
that owns the Prairie Island Nuclear Electric Generating Plant.

Subd. 4.

Expiration.

This section expires the day after the power purchase agreement
in effect on January 1, 2018, between an eligible heating and cooling system cogeneration
facility and the public utility that owns the Prairie Island Nuclear Electric Generating Plant
expires. This section does not extend or renew a power purchase agreement referenced in
this subdivision.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 11.

Minnesota Statutes 2016, section 216E.03, subdivision 9, is amended to read:


Subd. 9.

Timing.

The commission shall make a final decision on an application within
60 days after receipt of the report of the administrative law judge. A final decision on the
request for a site permit or route permit shall be made within one year after the commission's
determination that an application is complete. The commission may extend this time limit
for up to three months 30 days for just cause or upon agreement of the applicant.

EFFECTIVE DATE.

This section is effective the day following final enactment and
applies to any application filed with the commission on or after that date.

Sec. 12.

Minnesota Statutes 2016, section 216E.04, subdivision 7, is amended to read:


Subd. 7.

Timing.

The commission shall make a final decision on an application within
60 days after completion of the public hearing. A final decision on the request for a site
permit or route permit under this section shall be made within six months after the
commission's determination that an application is complete. The commission may extend
this time limit for up to three months 30 days for just cause or upon agreement of the
applicant.

EFFECTIVE DATE.

This section is effective the day following final enactment and
applies to any application filed with the commission on or after that date.

Sec. 13.

Laws 2017, chapter 94, article 10, section 28, is amended to read:


Sec. 28. PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR
THERMAL REBATES.

(a) No rebate may be paid under Minnesota Statutes 2016, section 216C.416, to an owner
of a solar thermal system whose application was approved by the commissioner of commerce
after the effective date of this act.

(b) Unspent money remaining in the account established under Minnesota Statutes 2014,
section 216C.416, as of July 2, 2017, must be transferred to the C-LEAF renewable
development
account established under Minnesota Statutes 2016, section 116C.779,
subdivision 1
.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 14.

Laws 2017, chapter 94, article 10, section 29, is amended to read:


Sec. 29. RENEWABLE DEVELOPMENT ACCOUNT; TRANSFER OF
UNEXPENDED GRANT FUNDS.

(a) No later than 30 days after the effective date of this section, the utility subject to
Minnesota Statutes, section 116C.779, subdivision 1, must notify in writing each person
who received a grant funded from the renewable development account previously established
under that subdivision:

(1) after January 1, 2012; and

(2) before January 1, 2012, if the funded project remains incomplete as of the effective
date of this section.

The notice must contain the provisions of this section and instructions directing grant
recipients how unexpended funds can be transferred to the clean energy advancement fund
renewable development
account.

(b) A recipient of a grant from the renewable development account previously established
under Minnesota Statutes, section 116C.779, subdivision 1, must, no later than 30 days after
receiving the notice required under paragraph (a), transfer any grant funds that remain
unexpended as of the effective date of this section to the clean energy advancement fund
renewable development
account if, by that effective date, all of the following conditions
are met:

(1) the grant was awarded more than five years before the effective date of this section;

(2) the grant recipient has failed to obtain control of the site on which the project is to
be constructed;

(3) the grant recipient has failed to secure all necessary permits or approvals from any
unit of government with respect to the project; and

(4) construction of the project has not begun.

(c) A recipient of a grant from the renewable development account previously established
under Minnesota Statutes, section 116C.779, subdivision 1, must transfer any grant funds
that remain unexpended five years after the grant funds are received by the grant recipient
if, by that date, the conditions in paragraph (b), clauses (2) to (4), have been met. The grant
recipient must transfer the unexpended funds no later than 30 days after the fifth anniversary
of the receipt of the grant funds.

(d) A person who transfers funds to the clean energy advancement fund renewable
development
account under this section is eligible to apply for funding from the clean energy
advancement fund
renewable development account.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 15. REPEALER.

Minnesota Statutes 2016, section 216B.2423, is repealed.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 8

HOUSING

Section 1.

[14.1275] RULES IMPACTING RESIDENTIAL CONSTRUCTION OR
REMODELING; LEGISLATIVE NOTICE AND REVIEW.

Subdivision 1.

Definition.

As used in this section, "residential construction" means the
new construction or remodeling of any building subject to the Minnesota Residential Code.

Subd. 2.

Impact on housing; agency determination.

(a) An agency must determine if
implementation of a proposed rule, or any portion of a proposed rule, will, on average,
increase the cost of residential construction or remodeling by $1,000 or more per unit, and
whether the proposed rule meets the state regulatory policy objectives described in section
14.002. In calculating the cost of implementing a proposed rule, the agency may consider
the impact of other related proposed rules on the overall cost of residential construction. If
applicable, the agency may include offsetting savings that may be achieved through
implementation of related proposed rules in its calculation under this subdivision.

(b) The agency must make the determination required by paragraph (a) before the close
of the hearing record, or before the agency submits the record to the administrative law
judge if there is no hearing. Upon request of a party affected by the proposed rule, the
administrative law judge must review and approve or disapprove an agency's determination
under this subdivision.

Subd. 3.

Notice to legislature; legislative review.

If the agency determines that the
impact of a proposed rule meets or exceeds the cost threshold provided in subdivision 2, or
if the administrative law judge separately confirms the cost of any portion of a rule exceeds
the cost threshold provided in subdivision 2, the agency must notify, in writing, the chair
and ranking minority members of the policy committees of the legislature with jurisdiction
over the subject matter of the proposed rule within ten days of the determination. The agency
shall not adopt the proposed rule until after the adjournment of the next annual session of
the legislature convened on or after the date that notice required in this subdivision is given
to the chairs and ranking minority members.

EFFECTIVE DATE.

This section is effective August 1, 2018, and applies to
administrative rules proposed on or after that date.

Sec. 2.

Minnesota Statutes 2016, section 299D.085, is amended by adding a subdivision
to read:


Subd. 3a.

Trailer use.

A vehicle or a combination of vehicles may tow a trailer during
the movement of an overdimensional load if:

(1) the party involved is a building mover licensed by the commissioner of transportation
under section 221.81;

(2) the building being moved is not a temporary structure;

(3) the overdimensional load is a manufactured home, as defined under section 327.31;
or

(4) the overdimensional load is a modular home, as defined under section 297A.668,
subdivision 8, paragraph (b).

Sec. 3.

Minnesota Statutes 2016, section 326B.815, subdivision 1, is amended to read:


Subdivision 1.

Fees.

(a) For the purposes of calculating fees under section 326B.092,
an initial or renewed residential contractor, residential remodeler, or residential roofer license
is a business license. Notwithstanding section 326B.092, the licensing fee for manufactured
home installers under section 327B.041 is $300 $180 for a three-year period.

(b) All initial and renewal licenses, except for manufactured home installer licenses,
shall be effective for two years and shall expire on March 31 of the year after the year in
which the application is made.

(c) The commissioner shall in a manner determined by the commissioner, without the
need for any rulemaking under chapter 14, phase in the renewal of residential contractor,
residential remodeler, and residential roofer licenses from one year to two years. By June
30, 2011, all renewed residential contractor, residential remodeler, and residential roofer
licenses shall be two-year licenses.

Sec. 4.

Minnesota Statutes 2016, section 327.31, is amended by adding a subdivision to
read:


Subd. 23.

Modular home.

"Modular home" means a building or structural unit of closed
construction that has been substantially manufactured or constructed, in whole or in part,
at an off-site location, with the final assembly occurring on site alone or with other units
and attached to a foundation designed to the State Building Code and occupied as a
single-family dwelling. Modular home construction must comply with applicable standards
adopted in Minnesota Rules, chapter 1360 or 1361.

Sec. 5.

[327.335] PLACEMENT OF MODULAR HOMES.

Notwithstanding any other law or ordinance to the contrary, a modular home may be
placed in a manufactured home park as defined in section 327.14, subdivision 3. A modular
home placed in a manufactured home park is a manufactured home for purposes of chapters
327C and 504B and all rights, obligations, and duties, under those chapters apply. A modular
home may not be placed in a manufactured home park without prior written approval of the
park owner. Nothing in this section shall be construed to inhibit the application of zoning,
subdivision, architectural, or esthetic requirements under chapters 394 and 462 that otherwise
apply to manufactured homes or manufactured home parks. A modular home placed in a
manufactured home park under this section shall be assessed and taxed as a manufactured
home.

Sec. 6.

Minnesota Statutes 2016, section 327B.041, is amended to read:


327B.041 MANUFACTURED HOME INSTALLERS.

(a) Manufactured home installers are subject to all of the fees in section 326B.092 and
the requirements of sections 326B.802 to 326B.885, except for the following:

(1) manufactured home installers are not subject to the continuing education requirements
of sections 326B.0981, 326B.099, and 326B.821, but are subject to the continuing education
requirements established in rules adopted under section 327B.10;

(2) the examination requirement of section 326B.83, subdivision 3, for manufactured
home installers shall be satisfied by successful completion of a written examination
administered and developed specifically for the examination of manufactured home installers.
The examination must be administered and developed by the commissioner. The
commissioner and the state building official shall seek advice on the grading, monitoring,
and updating of examinations from the Minnesota Manufactured Housing Association;

(3) a local government unit may not place a surcharge on a license fee, and may not
charge a separate fee to installers;

(4) a dealer or distributor who does not install or repair manufactured homes is exempt
from licensure under sections 326B.802 to 326B.885;

(5) the exemption under section 326B.805, subdivision 6, clause (5), does not apply;
and

(6) manufactured home installers are not subject to the contractor recovery fund in
section 326B.89.

(b) The commissioner may waive all or part of the requirements for licensure as a
manufactured home installer for any individual who holds an unexpired license or certificate
issued by any other state or other United States jurisdiction if the licensing requirements of
that jurisdiction meet or exceed the corresponding licensing requirements of the department
and the individual complies with section 326B.092, subdivisions 1 and 3 to 7. For the
purposes of calculating fees under section 326B.092, licensure as a manufactured home
installer is a business license.

Sec. 7.

Minnesota Statutes 2016, section 327C.095, subdivision 4, is amended to read:


Subd. 4.

Public hearing; relocation compensation; neutral third party.

The governing
body of the affected municipality shall hold a public hearing to review the closure statement
and any impact that the park closing may have on the displaced residents and the park owner.
At the time of, and in the notice for, the public hearing, displaced residents must be informed
that they may be eligible for payments from the Minnesota manufactured home relocation
trust fund under section 462A.35 as compensation for reasonable relocation costs under
subdivision 13, paragraphs (a) and (e).

The governing body of the municipality may also require that other parties, including
the municipality, but excluding the park owner or its purchaser, involved in the park closing
provide additional compensation to residents to mitigate the adverse financial impact of the
park closing upon the residents.

At the public hearing, the municipality shall appoint a qualified neutral third party, to
be agreed upon by both the manufactured home park owner and manufactured home owners,
whose hourly cost must be reasonable and paid from the Minnesota manufactured home
relocation trust fund. The neutral third party shall act as a paymaster and arbitrator, with
decision-making authority to resolve any questions or disputes regarding any contributions
or disbursements to and from the Minnesota manufactured home relocation trust fund by
either the manufactured home park owner or the manufactured home owners. If the parties
cannot agree on a neutral third party, the municipality will make a determination determine
who shall act as the neutral third party
.

The qualified neutral third party shall be familiar with manufactured housing and the
requirements of this section. The neutral third party shall keep an overall receipts and cost
summary together with a detailed accounting, for each manufactured lot, of the payments
received by the manufactured home park owner, and expenses approved and payments
disbursed to the manufactured home owners, pursuant to subdivisions 12 and 13, as well
as a record of all services and hours it provided and at what hourly rate it charged to the
Minnesota manufactured home trust fund. This detailed accounting shall be provided to the
manufactured home park owner, the municipality, and the Minnesota Housing Finance
Agency to be included in its yearly October 15 report as required in subdivision 13, paragraph
(h), not later than 30 days after the expiration of the nine-month notice provided in the
closure statement.

Sec. 8.

Minnesota Statutes 2016, section 327C.095, subdivision 6, is amended to read:


Subd. 6.

Intent to convert use of park at time of purchase.

Before the execution of
an agreement to purchase a manufactured home park, the purchaser must notify the park
owner, in writing, if the purchaser intends to close the manufactured home park or convert
it to another use within one year of the execution of the agreement. The park owner shall
provide a resident of each manufactured home with a 45-day written notice of the purchaser's
intent to close the park or convert it to another use. The notice must state that the park owner
will provide information on the cash price and the terms and conditions of the purchaser's
offer to residents requesting the information. The notice must be sent by first class mail to
a resident of each manufactured home in the park. The notice period begins on the postmark
date affixed to the notice and ends 45 days after it begins. During the notice period required
in this subdivision, the owners of at least 51 percent of the manufactured homes in the park
or a nonprofit organization which has the written permission of the owners of at least 51
percent of the manufactured homes in the park to represent them in the acquisition of the
park shall have the right to meet the cash price and execute an agreement to purchase the
park for the purposes of keeping the park as a manufactured housing community, provided
that the owners or nonprofit organization will covenant and warrant to the park owner in
the agreement that they will continue to operate the park for not less than six years from
the date of closing
. The park owner must accept the offer if it meets the cash price and the
same terms and conditions set forth in the purchaser's offer except that the seller is not
obligated to provide owner financing. For purposes of this section, cash price means the
cash price offer or equivalent cash offer as defined in section 500.245, subdivision 1,
paragraph (d).

Sec. 9.

Minnesota Statutes 2016, section 327C.095, subdivision 12, is amended to read:


Subd. 12.

Payment to the Minnesota manufactured home relocation trust fund.

(a)
If a manufactured home owner is required to move due to the conversion of all or a portion
of a manufactured home park to another use, the closure of a park, or cessation of use of
the land as a manufactured home park, the manufactured park owner shall, upon the change
in use, pay to the commissioner of management and budget for deposit in the Minnesota
manufactured home relocation trust fund under section 462A.35, the lesser amount of the
actual costs of moving or purchasing the manufactured home approved by the neutral third
party and paid by the Minnesota Housing Finance Agency under subdivision 13, paragraph
(a) or (e), or $3,250 for each single section manufactured home, and $6,000 for each
multisection manufactured home, for which a manufactured home owner has made
application for payment of relocation costs under subdivision 13, paragraph (c). The
manufactured home park owner shall make payments required under this section to the
Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice
from the neutral third party.

(b) A manufactured home park owner is not required to make the payment prescribed
under paragraph (a), nor is a manufactured home owner entitled to compensation under
subdivision 13, paragraph (a) or (e), if:

(1) the manufactured home park owner relocates the manufactured home owner to
another space in the manufactured home park or to another manufactured home park at the
park owner's expense;

(2) the manufactured home owner is vacating the premises and has informed the
manufactured home park owner or manager of this prior to the mailing date of the closure
statement under subdivision 1;

(3) a manufactured home owner has abandoned the manufactured home, or the
manufactured home owner is not current on the monthly lot rental, personal property taxes;

(4) the manufactured home owner has a pending eviction action for nonpayment of lot
rental amount under section 327C.09, which was filed against the manufactured home owner
prior to the mailing date of the closure statement under subdivision 1, and the writ of recovery
has been ordered by the district court;

(5) the conversion of all or a portion of a manufactured home park to another use, the
closure of a park, or cessation of use of the land as a manufactured home park is the result
of a taking or exercise of the power of eminent domain by a governmental entity or public
utility; or

(6) the owner of the manufactured home is not a resident of the manufactured home
park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home
is a resident, but came to reside in the manufactured home park after the mailing date of
the closure statement under subdivision 1.

(c) If the unencumbered fund balance in the manufactured home relocation trust fund
is less than $1,000,000 $3,000,000 as of June 30 of each year, the commissioner of
management and budget shall assess each manufactured home park owner by mail the total
amount of $15 for each licensed lot in their park, payable on or before September November
15 of that year. The commissioner of management Failure to notify and budget shall deposit
any payments in the Minnesota
timely assess the manufactured home relocation trust fund.
On or before July 15 of
park owner by August 30 of any year shall waive the assessment
and payment obligations of the manufactured home park owner for that year. Together with
said assessment notice,
each year, the commissioner of management and budget shall prepare
and distribute to park owners a letter explaining whether funds are being collected for that
year, information about the collection, an invoice for all licensed lots, and a sample form
for the park owners to collect information on which park residents have been accounted
for. If assessed under this paragraph, the park owner may recoup the cost of the $15
assessment as a lump sum or as a monthly fee of no more than $1.25 collected from park
residents together with monthly lot rent as provided in section 327C.03, subdivision 6. Park
owners may adjust payment for lots in their park that are vacant or otherwise not eligible
for contribution to the trust fund under section 327C.095, subdivision 12, paragraph (b),
and, for park residents who have not paid the $15 assessment to the park owner by October
15,
deduct from the assessment accordingly. The commissioner of management and budget
shall deposit any payments in the Minnesota manufactured home relocation trust fund.

(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by
the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action
in a court of appropriate jurisdiction. The court may award a prevailing party reasonable
attorney fees, court costs, and disbursements.

Sec. 10.

Minnesota Statutes 2016, section 327C.095, subdivision 13, is amended to read:


Subd. 13.

Change in use, relocation expenses; payments by park owner.

(a) If a
manufactured home owner is required to relocate due to the conversion of all or a portion
of a manufactured home park to another use, the closure of a manufactured home park, or
cessation of use of the land as a manufactured home park under subdivision 1, and the
manufactured home owner complies with the requirements of this section, the manufactured
home owner is entitled to payment from the Minnesota manufactured home relocation trust
fund equal to the manufactured home owner's actual relocation costs for relocating the
manufactured home to a new location within a 25-mile 50-mile radius of the park that is
being closed, up to a maximum of $7,000 $9,000 for a single-section and $12,500 for a
multisection manufactured home. The actual relocation costs must include the reasonable
cost of taking down, moving, and setting up the manufactured home, including equipment
rental, utility connection and disconnection charges, minor repairs, modifications necessary
for transportation of the home, necessary moving permits and insurance, moving costs for
any appurtenances, which meet applicable local, state, and federal building and construction
codes.

(b) A manufactured home owner is not entitled to compensation under paragraph (a) if
the manufactured home park owner is not required to make a payment to the Minnesota
manufactured home relocation trust fund under subdivision 12, paragraph (b).

(c) Except as provided in paragraph (e), in order to obtain payment from the Minnesota
manufactured home relocation trust fund, the manufactured home owner shall submit to the
neutral third party and the Minnesota Housing Finance Agency, with a copy to the park
owner, an application for payment, which includes:

(1) a copy of the closure statement under subdivision 1;

(2) a copy of the contract with a moving or towing contractor, which includes the
relocation costs for relocating the manufactured home;

(3) a statement with supporting materials of any additional relocation costs as outlined
in subdivision 1;

(4) a statement certifying that none of the exceptions to receipt of compensation under
subdivision 12, paragraph (b), apply to the manufactured home owner;

(5) a statement from the manufactured park owner that the lot rental is current and that
the annual $15 payments payment to the Minnesota manufactured home relocation trust
fund have has been paid when due; and

(6) a statement from the county where the manufactured home is located certifying that
personal property taxes for the manufactured home are paid through the end of that year.

(d) The neutral third party shall promptly process all payments within 14 days. If the
neutral third party has acted reasonably and does not approve or deny payment within 45
days after receipt of the information set forth in paragraph (c), the payment is deemed
approved. Upon approval and request by the neutral third party, the Minnesota Housing
Finance Agency shall issue two checks in equal amount for 50 percent of the contract price
payable to the mover and towing contractor for relocating the manufactured home in the
amount of the actual relocation cost, plus a check to the home owner for additional certified
costs associated with third-party vendors, that were necessary in relocating the manufactured
home. The moving or towing contractor shall receive 50 percent upon execution of the
contract and 50 percent upon completion of the relocation and approval by the manufactured
home owner. The moving or towing contractor may not apply the funds to any other purpose
other than relocation of the manufactured home as provided in the contract. A copy of the
approval must be forwarded by the neutral third party to the park owner with an invoice for
payment of the amount specified in subdivision 12, paragraph (a).

(e) In lieu of collecting a relocation payment from the Minnesota manufactured home
relocation trust fund under paragraph (a), the manufactured home owner may collect an
amount from the fund after reasonable efforts to relocate the manufactured home have failed
due to the age or condition of the manufactured home, or because there are no manufactured
home parks willing or able to accept the manufactured home within a 25-mile radius. A
manufactured home owner may tender title of the manufactured home in the manufactured
home park to the manufactured home park owner, and collect an amount to be determined
by an independent appraisal. The appraiser must be agreed to by both the manufactured
home park owner and the manufactured home owner. If the appraised market value cannot
be determined, the tax market value, averaged over a period of five years, can be used as a
substitute. The maximum amount that may be reimbursed under the fund is $8,000 for a
single-section and $14,500 for a multisection manufactured home. The minimum amount
that may be reimbursed under the fund is $2,000 for a single section and $4,000 for a
multisection manufactured home. The manufactured home owner shall deliver to the
manufactured home park owner the current certificate of title to the manufactured home
duly endorsed by the owner of record, and valid releases of all liens shown on the certificate
of title, and a statement from the county where the manufactured home is located evidencing
that the personal property taxes have been paid. The manufactured home owner's application
for funds under this paragraph must include a document certifying that the manufactured
home cannot be relocated, that the lot rental is current, that the annual $15 payments to the
Minnesota manufactured home relocation trust fund have been paid when due, that the
manufactured home owner has chosen to tender title under this section, and that the park
owner agrees to make a payment to the commissioner of management and budget in the
amount established in subdivision 12, paragraph (a), less any documented costs submitted
to the neutral third party, required for demolition and removal of the home, and any debris
or refuse left on the lot, not to exceed $1,000 $3,000. The manufactured home owner must
also provide a copy of the certificate of title endorsed by the owner of record, and certify
to the neutral third party, with a copy to the park owner, that none of the exceptions to
receipt of compensation under subdivision 12, paragraph (b), clauses (1) to (6), apply to the
manufactured home owner, and that the home owner will vacate the home within 60 days
after receipt of payment or the date of park closure, whichever is earlier, provided that the
monthly lot rent is kept current.

(f) The Minnesota Housing Finance Agency must make a determination of the amount
of payment a manufactured home owner would have been entitled to under a local ordinance
in effect on May 26, 2007. Notwithstanding paragraph (a), the manufactured home owner's
compensation for relocation costs from the fund under section 462A.35, is the greater of
the amount provided under this subdivision, or the amount under the local ordinance in
effect on May 26, 2007, that is applicable to the manufactured home owner. Nothing in this
paragraph is intended to increase the liability of the park owner.

(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall be
liable to any person for recovery if the funds in the Minnesota manufactured home relocation
trust fund are insufficient to pay the amounts claimed. The Minnesota Housing Finance
Agency shall keep a record of the time and date of its approval of payment to a claimant.

(h)(1) By October 15, 2018, the Minnesota Housing Finance Agency shall post on its
Web site and report to the chairs of the senate Finance Committee and house of
representatives Ways and Means Committee on the Minnesota manufactured home relocation
trust fund, including the account balance, payments to claimants, the amount of any advances
to the fund, the amount of any insufficiencies encountered during the previous calendar
year, and any itemized administrative charges or expenses deducted from the trust fund
balance. If sufficient funds become available, the Minnesota Housing Finance Agency shall
pay the manufactured home owner whose unpaid claim is the earliest by time and date of
approval.

(2) Beginning in 2019, the Minnesota Housing Finance Agency shall post on its Web
site and
report to the chairs of the senate Finance Committee and house of representatives
Ways and Means Committee by January October 15 of each year on the Minnesota
manufactured home relocation trust fund, including the aggregate account balance, the
aggregate assessment payments received, summary information regarding each closed park
including the total
payments to claimants and payments received from each closed park,
the amount of any advances to the fund, the amount of any insufficiencies encountered
during the previous calendar fiscal year, reports of neutral third parties provided pursuant
to subdivision 4,
and any itemized administrative charges or expenses deducted from the
trust fund balance, all of which should be reconciled to the previous year's trust fund balance.
If sufficient funds become available, the Minnesota Housing Finance Agency shall pay the
manufactured home owner whose unpaid claim is the earliest by time and date of approval.

Sec. 11.

Minnesota Statutes 2016, section 327C.095, is amended by adding a subdivision
to read:


Subd. 16.

Reporting of licensed manufactured home parks.

The Department of Health
or, if applicable, local units of government that have entered into a delegation of authority
agreement with the Department of Health as provided in section 145A.07 shall provide, by
March 31 of each year, a list of names and addresses of the manufactured home parks
licensed in the previous year, and for each manufactured home park, the current licensed
owner, the owner's address, the number of licensed manufactured home lots, and other data
as they may request for the Department of Management and Budget to invoice each licensed
manufactured home park in Minnesota.

Sec. 12.

Minnesota Statutes 2016, section 462A.222, subdivision 3, is amended to read:


Subd. 3.

Allocation procedure.

(a) Projects will be awarded tax credits in two
competitive rounds on an annual basis. The date for applications for each round must be
determined by the agency. No allocating agency may award tax credits prior to the application
dates established by the agency.

(b) Each allocating agency must meet the requirements of section 42(m) of the Internal
Revenue Code of 1986, as amended through December 31, 1989, for the allocation of tax
credits and the selection of projects.

(c) For projects that are eligible for an allocation of credits pursuant to section 42(h)(4)
of the Internal Revenue Code of 1986, as amended, tax credits may only be allocated if the
project satisfies the requirements of the allocating agency's qualified allocation plan. For
projects that are eligible for an allocation of credits pursuant to section 42(h)(4) of the
Internal Revenue Code of 1986, as amended, for which the agency is the issuer of the bonds
for the project, or the issuer of the bonds for the project is located outside the jurisdiction
of a city or county that has received reserved tax credits, the applicable allocation plan is
the agency's qualified allocation plan. Notwithstanding this paragraph, any projects that are
eligible for an allocation of credits pursuant to section 42(h)(4) of the Internal Revenue
Code of 1986, as amended, for which the Minnesota Housing Finance Agency is the issuer
of the bonds for the project, or the issuer of the bonds for the project is located outside the
jurisdiction of a city or county that has received reserved tax credits, and such project meets
the requirements of both section 474A.047 and section 42 of the Internal Revenue Code,
such projects shall be deemed for all purposes to have satisfied all the requirements of the
Minnesota Housing Finance Agency's qualified allocation plan and all other related guidance
and requirements and the agency shall timely issue the necessary determination letters under
section 42(m) of the Internal Revenue Code of 1986, as amended, or Form 8609. The
Minnesota Housing Finance Agency's qualified allocation plan is required to contain the
provisions of this subdivision.

(d) For applications submitted for the first round, an allocating agency may allocate tax
credits only to the following types of projects:

(1) in the metropolitan area:

(i) new construction or substantial rehabilitation of projects in which, for the term of the
extended use period, at least 75 percent of the total tax credit units are single-room
occupancy, efficiency, or one bedroom units and which are affordable by households whose
income does not exceed 30 percent of the median income;

(ii) new construction or substantial rehabilitation family housing projects that are not
restricted to persons who are 55 years of age or older and in which, for the term of the
extended use period, at least 75 percent of the tax credit units contain two or more bedrooms
and at least one-third of the 75 percent contain three or more bedrooms; or

(iii) substantial rehabilitation projects in neighborhoods targeted by the city for
revitalization;

(2) outside the metropolitan area, projects which meet a locally identified housing need
and which are in short supply in the local housing market as evidenced by credible data
submitted with the application;

(3) projects that are not restricted to persons of a particular age group and in which, for
the term of the extended use period, a percentage of the units are set aside and rented to
persons:

(i) with a serious and persistent mental illness as defined in section 245.462, subdivision
20
, paragraph (c);

(ii) with a developmental disability as defined in United States Code, title 42, section
6001, paragraph (5), as amended through December 31, 1990;

(iii) who have been assessed as drug dependent persons as defined in section 254A.02,
subdivision 5
, and are receiving or will receive care and treatment services provided by an
approved treatment program as defined in section 254A.02, subdivision 2;

(iv) with a brain injury as defined in section 256B.093, subdivision 4, paragraph (a); or

(v) with permanent physical disabilities that substantially limit one or more major life
activities, if at least 50 percent of the units in the project are accessible as provided under
Minnesota Rules, chapter 1340;

(4) projects, whether or not restricted to persons of a particular age group, which preserve
existing subsidized housing, if the use of tax credits is necessary to prevent conversion to
market rate use or to remedy physical deterioration of the project which would result in loss
of existing federal subsidies; or

(5) projects financed by the Farmers Home Administration, or its successor agency,
which meet statewide distribution goals.

(e) Before the date for applications for the final round, the allocating agencies other than
the agency shall return all uncommitted and unallocated tax credits to a unified pool for
allocation by the agency on a statewide basis.

(f) Unused portions of the state ceiling for low-income housing tax credits reserved to
cities and counties for allocation may be returned at any time to the agency for allocation.

(g) If an allocating agency determines, at any time after the initial commitment or
allocation for a specific project, that a project is no longer eligible for all or a portion of the
low-income housing tax credits committed or allocated to the project, the credits must be
transferred to the agency to be reallocated pursuant to the procedures established in
paragraphs (e) to (g); provided that if the tax credits for which the project is no longer
eligible are from the current year's annual ceiling and the allocating agency maintains a
waiting list, the allocating agency may continue to commit or allocate the credits until not
later than the date of applications for the final round, at which time any uncommitted credits
must be transferred to the agency.

Sec. 13.

Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision
to read:


Subd. 1a.

Aggregate bond limitation.

"Aggregate bond limitation" means up to 55
percent of the reasonably expected aggregate basis of a residential rental project and the
land on which the project is or will be located.

Sec. 14.

Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision
to read:


Subd. 1b.

AMI.

"AMI" means the area median income for the applicable county or
metropolitan area as published by the Department of Housing and Urban Development, as
adjusted for household size.

Sec. 15.

Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision
to read:


Subd. 12a.

LIHTC.

"LIHTC" means low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended.

Sec. 16.

Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision
to read:


Subd. 21a.

Preservation project.

"Preservation project" means any residential rental
project, regardless of whether or not such project is restricted to persons of a certain age or
older, that receives federal project-based rental subsidies. In addition, to qualify as a
preservation project, the amount of bonds requested in the application must not exceed the
aggregate bond limitation.

Sec. 17.

Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision
to read:


Subd. 30.

30 percent AMI residential rental project.

"30 percent AMI residential
rental project" means a residential rental project that does not otherwise qualify as a
preservation project, is expected to generate low-income housing tax credits under section
42 of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential
units, and in which:

(1) all the residential units of the project:

(i) are reserved for tenants whose income, on average, is 30 percent of AMI or less;

(ii) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code
of 1986, as amended; and

(iii) are subject to rent and income restrictions for a period of not less than 30 years; or

(2)(i) is located within a county or metropolitan area that has a current median area gross
income that is less than the statewide area median income for Minnesota;

(ii) all of the units of the project are rent-restricted in accordance with section 42(g)(2)
of the Internal Revenue Code of 1986, as amended; and

(iii) all of the units of the project are subject to the applicable rent and income restrictions
for a period of not less than 30 years.

In addition, to qualify as a 30 percent AMI residential project, the amount of bonds
requested in the application must not exceed the aggregate bond limitation.

Sec. 18.

Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision
to read:


Subd. 31.

50 percent AMI residential rental project.

"50 percent AMI residential
rental project," means a residential rental project that does not qualify as a preservation
project or 30 percent AMI residential rental project, is expected to generate low-income
housing tax credits under section 42 of the Internal Revenue Code of 1986, as amended,
from 100 percent of its residential units, and in which all the residential units of the project:

(1) are reserved for tenants whose income, on average, is 50 percent of AMI or less;

(2) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code
of 1986, as amended; and

(3) are subject to rent and income restrictions for a period of not less than 30 years.

In addition, to qualify as a 50 percent AMI residential rental project, the amount of bonds
requested in the application must not exceed the aggregate bond limitation.

Sec. 19.

Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision
to read:


Subd. 32.

100 percent LIHTC project.

"100 percent LIHTC project" means a residential
rental project that is expected to generate low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential units
and does not otherwise qualify as a preservation project, 30 percent AMI residential rental
project, or 50 percent AMI residential rental project. In addition, to qualify as a 100 percent
LIHTC project, the amount of bonds requested in the application must not exceed the
aggregate bond limitation.

Sec. 20.

Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision
to read:


Subd. 33.

20 percent LIHTC project.

"20 percent LIHTC project" means a residential
rental project that is expected to generate low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended, from at least 20 percent of its residential
units and does not otherwise qualify as a preservation project, 30 percent AMI residential
rental project, 50 percent AMI residential rental project, or 100 percent LIHTC project. In
addition, to qualify as a 20 percent LIHTC project, the amount of bonds requested in the
application must not exceed the aggregate bond limitation.

Sec. 21.

Minnesota Statutes 2016, section 474A.03, subdivision 1, is amended to read:


Subdivision 1.

Under federal tax law; allocations.

At the beginning of each calendar
year after December 31, 2001, the commissioner shall determine the aggregate dollar amount
of the annual volume cap under federal tax law for the calendar year, and of this amount
the commissioner shall make the following allocation:

(1) $74,530,000 to the small issue pool;

(2) $122,060,000 to the housing pool, of which 31 percent of the adjusted allocation is
reserved until the last Monday in July for single-family housing programs
;

(3) $12,750,000 to the public facilities pool; and

(4) amounts to be allocated as provided in subdivision 2a.

If the annual volume cap is greater or less than the amount of bonding authority allocated
under clauses (1) to (4) and subdivision 2a, paragraph (a), clauses (1) to (4), the allocation
must be adjusted so that each adjusted allocation is the same percentage of the annual volume
cap as each original allocation is of the total bonding authority originally allocated.

EFFECTIVE DATE.

This section is effective the day following final enactment and
expires January 1, 2021.

Sec. 22.

Minnesota Statutes 2016, section 474A.04, subdivision 1a, is amended to read:


Subd. 1a.

Entitlement reservations.

Any amount returned by an entitlement issuer
before July June 15 shall be reallocated through the housing pool. Any amount returned on
or after July 15 1 shall be reallocated through the unified pool. An amount returned after
the last Monday in November shall be reallocated to the Minnesota Housing Finance Agency.

Sec. 23.

Minnesota Statutes 2016, section 474A.047, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

(a) An issuer may only use the proceeds from residential
rental bonds if the proposed project meets the following requirements:

(1) the proposed residential rental project meets the requirements of section 142(d) of
the Internal Revenue Code regarding the incomes of the occupants of the housing; and

(2) the maximum rent for at least 20 percent of the units in the proposed residential rental
project do not exceed the area fair market rent or exception fair market rents for existing
housing, if applicable, as established by the federal Department of Housing and Urban
Development. The rental rates of units in a residential rental project for which project-based
federal assistance payments are made are deemed to be within the rent limitations of this
clause.

(b) The proceeds from residential rental bonds may be used for a project for which
project-based federal rental assistance payments are made only if: the owner of the project
enters into a binding agreement with the issuer under which the owner is obligated to extend
any existing low-income affordability restrictions and any contract or agreement for rental
assistance payments for the maximum term permitted, including any renewals thereof.

(1) the owner of the project enters into a binding agreement with the Minnesota Housing
Finance Agency under which the owner is obligated to extend any existing low-income
affordability restrictions and any contract or agreement for rental assistance payments for
the maximum term permitted, including any renewals thereof; and

(2) the Minnesota Housing Finance Agency certifies that project reserves will be
maintained at closing of the bond issue and budgeted in future years at the lesser of:

(i) the level described in Minnesota Rules, part 4900.0010, subpart 7, item A, subitem
(2), effective May 1, 1997; or

(ii) the level of project reserves available prior to the bond issue, provided that additional
money is available to accomplish repairs and replacements needed at the time of bond issue.

Sec. 24.

Minnesota Statutes 2016, section 474A.047, subdivision 2, is amended to read: