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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 128-S.F.No. 905 
                  An act relating to state government; appropriating 
                  money for environmental, natural resources, 
                  agricultural, economic development, and housing 
                  purposes; establishing and modifying certain programs; 
                  providing for regulation of certain activities and 
                  practices; providing for accounts, assessments, and 
                  fees; amending Minnesota Statutes 2002, sections 
                  13.462, subdivision 2; 16A.531, subdivision 1, by 
                  adding a subdivision; 17.03, subdivision 6; 17.101, 
                  subdivision 1; 17.451; 17.452, subdivisions 8, 10, 11, 
                  12, 13, by adding subdivisions; 17.4988; 18.78; 18.79, 
                  subdivisions 2, 3, 5, 6, 9, 10; 18.81, subdivisions 2, 
                  3; 18.84, subdivision 3; 18.86; 18B.10; 18B.26, 
                  subdivision 3; 18B.37, by adding a subdivision; 21.81, 
                  subdivision 8, by adding subdivisions; 21.82; 21.83, 
                  subdivision 2; 21.84; 21.85, subdivisions 11, 13; 
                  21.86; 21.88; 21.89, subdivisions 2, 4; 21.90, 
                  subdivisions 2, 3; 21.901; 28A.08, subdivision 3; 
                  28A.085, subdivision 1; 28A.09, subdivision 1; 32.394, 
                  subdivisions 8, 8b, 8d; 35.155; 38.02, subdivisions 1, 
                  3; 41A.036, subdivision 2; 41A.09, subdivisions 2a, 
                  3a; 43A.24, subdivision 2; 47.59, subdivision 4a; 
                  84.027, subdivision 13; 84.029, subdivision 1; 84.085, 
                  subdivision 1; 84.091, subdivisions 2, 3; 84.0911; 
                  84.788, subdivisions 2, 3; 84.798, subdivision 3; 
                  84.803, subdivision 2; 84.92, subdivision 8; 84.922, 
                  subdivisions 2, 5; 84.926; 84.927, subdivision 2; 
                  84.928, subdivision 1; 84A.02; 84A.21; 84A.32, 
                  subdivision 1; 84A.55, subdivision 8; 84D.14; 85.04; 
                  85.052, subdivision 3; 85.053, subdivision 1; 85.055, 
                  subdivision 1; 85A.02, subdivision 17; 86B.415, 
                  subdivision 8; 86B.870, subdivision 1; 97A.045, by 
                  adding a subdivision; 97A.071, subdivision 2; 97A.075, 
                  subdivisions 1, 2, 4; 97A.105, subdivision 1; 97A.401, 
                  subdivision 3; 97A.441, subdivision 7, by adding a 
                  subdivision; 97A.475, subdivisions 2, 3, 4, 5, 10, 15, 
                  26, 27, 28, 29, 30, 38, 39, 40, 42, by adding a 
                  subdivision; 97A.485, subdivision 6; 97A.505, by 
                  adding subdivisions; 97B.311; 103B.231, subdivision 
                  3a; 103B.305, subdivision 3, by adding subdivisions; 
                  103B.311, subdivisions 1, 2, 3, 4; 103B.315, 
                  subdivisions 4, 5, 6; 103B.321, subdivisions 1, 2; 
                  103B.325, subdivisions 1, 2; 103B.331, subdivisions 1, 
                  2, 3; 103B.3363, subdivision 3; 103B.3369, 
                  subdivisions 2, 4, 5, 6; 103B.355; 103D.341, 
                  subdivision 2; 103D.345, by adding a subdivision; 
                  103D.405, subdivision 2; 103D.537; 103G.005, 
                  subdivision 10e; 103G.222, subdivisions 1, 3; 
                  103G.2242, by adding subdivisions; 103G.271, 
                  subdivisions 6, 6a; 103G.611, subdivision 1; 103G.615, 
                  subdivision 2; 115.03, by adding subdivisions; 
                  115.073; 115.55, subdivision 1; 115.56, subdivision 4; 
                  115A.0716, subdivision 3; 115A.54, by adding a 
                  subdivision; 115A.545, subdivision 2; 115A.908, 
                  subdivision 2; 115A.919, subdivision 1; 115A.9651, 
                  subdivision 6; 115B.17, subdivisions 6, 7, 14, 16; 
                  115B.19; 115B.20; 115B.22, subdivision 7; 115B.25, 
                  subdivisions 1a, 4; 115B.26; 115B.30; 115B.31, 
                  subdivisions 1, 3, 4; 115B.32, subdivision 1; 115B.33, 
                  subdivision 1; 115B.34; 115B.36; 115B.40, subdivision 
                  4; 115B.41, subdivisions 1, 2, 3; 115B.42, subdivision 
                  2; 115B.421; 115B.445; 115B.48, subdivision 2; 
                  115B.49, subdivisions 1, 3; 115C.02, subdivision 14; 
                  115C.08, subdivision 4; 115C.09, subdivision 3, by 
                  adding subdivisions; 115C.11, subdivision 1; 115C.13; 
                  115D.12, subdivision 2; 116.03, subdivision 2; 116.07, 
                  subdivisions 4d, 4h, 7a; 116.073, subdivisions 1, 2; 
                  116.46, by adding subdivisions; 116.49, by adding 
                  subdivisions; 116.50; 116.994; 116C.834, subdivision 
                  1; 116D.04, subdivision 2a; 116J.011; 116J.411, by 
                  adding a subdivision; 116J.415, subdivisions 1, 2, 4, 
                  5, 7, 11; 116J.553, subdivision 2; 116J.554, 
                  subdivision 2; 116J.64, subdivision 2; 116J.8731, 
                  subdivisions 1, 4, 5, 7; 116J.8764, by adding a 
                  subdivision; 116J.955, subdivision 2; 116J.966, 
                  subdivision 2; 116J.994, subdivisions 4, 9, 10; 
                  116J.995; 116L.02; 116L.04, subdivisions 1, 1a; 
                  116L.12, subdivision 4; 116L.17, subdivisions 2, 3, 8, 
                  by adding a subdivision; 116M.14, subdivision 4; 
                  116O.03, subdivision 2; 116O.09, subdivisions 1, 1a, 
                  2; 116O.091, subdivision 7; 116O.12; 116P.02, 
                  subdivision 1; 116P.05, subdivision 2; 116P.09, 
                  subdivisions 4, 5, 7; 116P.10; 116P.14, subdivisions 
                  1, 2; 168.66, subdivision 14; 168.71, subdivision 2; 
                  168.75; 175.16, subdivision 1; 177.26, subdivisions 1, 
                  2; 178.01; 178.03, subdivisions 1, 2; 181.9435, 
                  subdivision 1; 181.9436; 182.667, subdivision 2; 
                  216C.41, subdivision 1; 248.10; 268A.02, by adding a 
                  subdivision; 273.13, subdivision 23; 297A.94; 297F.10, 
                  subdivision 1; 297H.13, subdivisions 1, 2; 325E.10, 
                  subdivision 1; 469.175, subdivision 7; 473.843, 
                  subdivision 2; 473.844, subdivision 1; 473.845, 
                  subdivisions 1, 3, 7, 8; 473.846; 517.08, subdivisions 
                  1b, 1c; 624.20, subdivision 1; Laws 2001, First 
                  Special Session chapter 4, article 2, section 31; Laws 
                  2002, chapter 220, article 13, section 9, subdivision 
                  2, as amended; Laws 2002, chapter 331, section 19; 
                  Laws 2002, chapter 382, article 2, section 1, 
                  subdivisions 2, 5; Laws 2002, chapter 382, article 2, 
                  section 2, subdivisions 1, 2; Laws 2002, chapter 382, 
                  article 2, section 3, subdivision 4; Laws 2002, 
                  chapter 382, article 2, section 4, subdivisions 6, 8, 
                  10; Laws 2002, chapter 382, article 2, section 5, 
                  subdivision 1, by adding a subdivision; Laws 2002, 
                  382, article 2, section 6; Laws 2002, 382, article 2, 
                  section 8, subdivision 3; Laws 2002, 382, article 2, 
                  section 9; Laws 2002, 382, article 2, section 10, 
                  subdivision 2; Laws 2002, 382, article 2, section 11; 
                  Laws 2002, 382, article 2, section 12, subdivision 5; 
                  Laws 2002, 382, article 2, section 13, subdivision 3; 
                  Laws 2002, 382, article 2, section 16; proposing 
                  coding for new law in Minnesota Statutes, chapters 21; 
                  84; 84B; 103B; 115; 115A; 115C; 116; 116J; 178; 
                  proposing coding for new law as Minnesota Statutes, 
                  chapters 18G; 18H; 18J; repealing Minnesota Statutes 
                  2002, sections 1.31; 1.32; 13.598, subdivision 2; 
                  17.03, subdivision 8; 17.110; 17.23; 18.012; 18.021; 
                  18.022; 18.0223; 18.0225; 18.0227; 18.0228; 18.0229; 
                  18.023; 18.024; 18.041; 18.051; 18.061; 18.071; 
                  18.081; 18.091; 18.101; 18.111; 18.121; 18.131; 
                  18.141; 18.151; 18.161; 18.331; 18.332; 18.333; 
                  18.334; 18.335; 18.44; 18.45; 18.46; 18.47; 18.48; 
                  18.49; 18.50; 18.51; 18.52; 18.525; 18.53; 18.54; 
                  18.55; 18.56; 18.57; 18.59; 18.60; 18.61; 18.85; 
                  18B.05, subdivision 2; 21.85, subdivisions 1, 3, 4, 5, 
                  6, 7, 8, 9; 21.90; 37.26; 41A.09, subdivisions 1, 5a, 
                  6, 7, 8; 84.0887; 84.98; 84.99; 97A.105, subdivisions 
                  3a, 3b; 103B.311, subdivisions 5, 6, 7; 103B.315, 
                  subdivisions 1, 2, 3, 7; 103B.321, subdivision 3; 
                  103B.3369, subdivision 3; 115B.02, subdivision 1a; 
                  115B.42, subdivision 1; 116J.411, subdivision 3; 
                  116J.415, subdivisions 6, 9, 10; 116J.617, 
                  subdivisions 5, 6; 116J.693; 116J.9665; 138.91; 
                  297H.13, subdivisions 3, 4; 325E.112, subdivision 3; 
                  325E.113; 473.845, subdivision 4; Minnesota Rules, 
                  parts 1510.0281; 9300.0010; 9300.0020; 9300.0030; 
                  9300.0040; 9300.0050; 9300.0060; 9300.0070; 9300.0080; 
                  9300.0090; 9300.0100; 9300.0110; 9300.0120; 9300.0130; 
                  9300.0140; 9300.0150; 9300.0160; 9300.0170; 9300.0180; 
                  9300.0190; 9300.0200; 9300.0210. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1 
                       ENVIRONMENT AND NATURAL RESOURCES 
        Section 1.  [ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or another named fund, to 
        the agencies and for the purposes specified in this act, to be 
        available for the fiscal years indicated for each purpose.  The 
        figures "2004" and "2005," where used in this act, mean that the 
        appropriation or appropriations listed under them are available 
        for the year ending June 30, 2004, or June 30, 2005, 
        respectively.  The term "the first year" means the year ending 
        June 30, 2004, and the term "the second year" means the year 
        ending June 30, 2005. 
                                SUMMARY BY FUND
                                  2004          2005           TOTAL
        General            $  141,347,000 $  141,116,000 $  282,463,000
        State Government
        Special Revenue            48,000         48,000         96,000
        Environmental          38,806,000     38,806,000     77,612,000
        Natural  
        Resources              52,501,000     50,161,000    102,662,000
        Game and Fish          82,350,000     82,292,000    164,642,000
        Remediation            11,504,000     11,504,000     23,008,000
        Land and Water
        Conservation Account    2,000,000        -0-          2,000,000
        Great Lakes
        Protection Account         56,000        -0-             56,000
        Environment and
        Natural Resources Trust
        Fund                   15,050,000     15,050,000     30,100,000
        Oil Overcharge            519,000        -0-            519,000
        Total                 344,181,000    338,977,000    683,158,000
        Sec. 2.  POLLUTION CONTROL    
        AGENCY  
        Subdivision 1.  Total           
        Appropriation                        $52,979,000   $52,979,000
                      Summary by Fund
        General              14,715,000    14,715,000
        State Government   
        Special Revenue          48,000        48,000
        Environmental        26,812,000    26,812,000
        Remediation          11,404,000    11,404,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Water 
            19,456,000     19,456,000
                      Summary by Fund
        General              10,467,000    10,467,000
        State Government
        Special Revenue          48,000        48,000
        Environmental         8,941,000     8,941,000
        $2,348,000 the first year and 
        $2,348,000 the second year are for the 
        clean water partnership program.  Any 
        balance remaining in the first year 
        does not cancel and is available for 
        the second year of the biennium. 
        $2,324,000 the first year and 
        $2,324,000 the second year are for 
        grants for county administration of the 
        feedlot permit program.  Grants must be 
        matched with a combination of local 
        cash and/or in-kind contributions. 
        Counties receiving these grants shall 
        submit an annual report to the 
        pollution control agency regarding 
        activities conducted under the grant, 
        expenditures made, and local match 
        contributions.  Funding shall be given 
        to counties that have requested and 
        received delegation from the pollution 
        control agency for processing of animal 
        feedlot permit applications under 
        Minnesota Statutes, section 116.07, 
        subdivision 7.  The first year, 
        delegated counties shall be eligible to 
        receive an amount of either: 
        (1) $50 multiplied by the number of 
        feedlots with greater than ten animal 
        units as reported by the county in 
        their annual report for registration 
        data developed in accordance to 
        Minnesota Rules, part 7020.0350, or 
        Minnesota Statutes, section 116.072; or 
        (2) $80 multiplied by the number of 
        feedlots with greater than ten animal 
        units as reported by the county in 
        their annual report and determined by a 
        level 2 or level 3 feedlot inventory 
        conducted in accordance with the 
        "Feedlot Inventory Guidebook" published 
        by the board of water and soil 
        resources, dated June 1991.  
        The second year, delegated counties 
        shall be eligible to receive an amount 
        of either: 
        (1) $50 multiplied by the number of 
        feedlots with greater than ten animal 
        units as reported to the agency under 
        the terms of aggregate reporting as 
        defined in Minnesota Statutes, section 
        116.0712; or 
        (2) $80 multiplied by the number of 
        feedlots with greater than ten animal 
        units based on the agency's statewide 
        database for registration in accordance 
        with Minnesota Rules, part 7020.0350.  
        By June 30, 2004, the agency, in 
        consultation with delegated counties, 
        shall develop a new funding formula 
        incorporating the following criteria at 
        a minimum: 
        (i) fee multiplier per feedlot as 
        defined by the state registration 
        program (greater than 50 animal units 
        in nonshoreland areas, and ten to 50 
        animal units in shoreland areas); 
        (ii) use of the state database for 
        determination of the feedlots in item 
        (i); and 
        (iii) incentive-based payments for 
        counties exceeding minimum program 
        requirements based on program 
        priorities. 
        To be eligible for a grant, a county 
        must be delegated by December 31 of the 
        year prior to the year in which awards 
        are distributed.  At a minimum, 
        delegated counties are eligible to 
        receive a grant of $7,500 per year.  To 
        receive the award, the county must 
        receive approval by the pollution 
        control agency of the county feedlot 
        work plan and annual county feedlot 
        officer report.  Feedlots that have 
        been inactive for five or more years 
        may not be counted in determining the 
        amount of the grant. 
        Any money remaining after the first 
        year is available for the second year.  
        Any money remaining in either year is 
        available for distribution to all 
        counties on a competitive basis through 
        the challenge grant process for the 
        development of delegated county feedlot 
        programs or to enhance existing 
        delegated county feedlot programs, 
        information and education, or technical 
        assistance efforts to reduce 
        feedlot-related pollution hazards. 
        $335,000 the first year and $335,000 
        the second year are for community 
        technical assistance and education, 
        including grants and technical 
        assistance to communities for local and 
        basinwide water quality protection. 
        $405,000 the first year and $405,000 
        the second year are for individual 
        sewage treatment system (ISTS) 
        administration and/or grants.  Of this 
        amount, $86,000 in each year is for 
        assistance to local units of government 
        through competitive grant programs for 
        ISTS program development.  Any 
        unexpended balance in the first year 
        does not cancel but is available in the 
        second year. 
        $480,000 the first year and $480,000 
        the second year are from the 
        environmental fund to address the need 
        for increased activity in the areas of 
        new technology review, technical 
        assistance for local governments, and 
        enforcement under Minnesota Statutes, 
        sections 115.55 to 115.58, and to 
        complete the requirements of sections 
        164 and 165.  Of this amount, $48,000 
        each year is for administration of 
        individual septic tank fees, as 
        provided in section 124. 
        By February 1, 2004, the commissioner 
        shall report to the environment and 
        natural resources finance committees of 
        the house and senate on the status of 
        discussions with stakeholders on 
        strategies to implement the impaired 
        waters program and any specific 
        recommendations on funding options to 
        address the needs documented in the 
        agency's report to the legislature, 
        "Minnesota's Impaired Waters," dated 
        March 2003. 
        Notwithstanding Minnesota Statutes, 
        section 16A.28, the appropriations 
        encumbered under contract on or before 
        June 30, 2005, for clean water 
        partnership, ISTS, Minnesota River, and 
        local and basinwide water quality 
        protection grants in this subdivision 
        are available until June 30, 2007.  
        Subd. 3.  Air
             8,770,000      8,765,000
                      Summary by Fund
        Environmental         8,770,000     8,765,000
        Up to $150,000 the first year and 
        $150,000 the second year may be 
        transferred to the environmental fund 
        for the small business environmental 
        improvement loan program established in 
        Minnesota Statutes, section 116.993. 
        $200,000 the first year and $200,000 
        the second year are from the 
        environmental fund for a monitoring 
        program under Minnesota Statutes, 
        section 116.454. 
        $125,000 the first year and $125,000 
        the second year are from the 
        environmental fund for monitoring 
        ambient air for hazardous pollutants in 
        the metropolitan area.  
        Subd. 4.  Land 
            18,469,000     18,469,000
                      Summary by Fund
        Environmental         7,065,000     7,065,000
        Remediation          11,404,000    11,404,000
        All money for environmental response, 
        compensation, and compliance in the 
        remediation fund not otherwise 
        appropriated is appropriated to the 
        commissioners of the pollution control 
        agency and the department of 
        agriculture for purposes of Minnesota 
        Statutes, section 115B.20, subdivision 
        2, clauses (1), (2), (3), (6), and 
        (7).  At the beginning of each fiscal 
        year, the two commissioners shall 
        jointly submit an annual spending plan 
        to the commissioner of finance that 
        maximizes the utilization of resources 
        and appropriately allocates the money 
        between the two agencies.  This 
        appropriation is available until June 
        30, 2005. 
        $574,000 the first year and $574,000 
        the second year are from the petroleum 
        tank fund to be transferred to the 
        remediation fund for purposes of the 
        leaking underground storage tank 
        program to protect the land. 
        $200,000 the first year and $200,000 
        the second year are from the 
        remediation fund to be transferred to 
        the department of health for private 
        water supply monitoring and health 
        assessment costs in areas contaminated 
        by unpermitted mixed municipal solid 
        waste disposal facilities. 
        Subd. 5.  Multimedia 
             4,301,000      4,306,000
                      Summary by Fund
        General               2,265,000     2,265,000
        Environmental         2,036,000     2,041,000
        Subd. 6.  Administrative Support
             1,983,000      1,983,000
        Sec. 3.  OFFICE OF ENVIRONMENTAL 
        ASSISTANCE                            23,754,000     23,754,000
                      Summary by Fund
        General              11,760,000    11,760,000
        Environmental        11,994,000    11,994,000
        $12,500,000 each year is for SCORE 
        block grants to counties.  Of that 
        amount, $7,060,000 is from the general 
        fund and $5,440,000 is from the 
        environmental fund. 
        Any unencumbered grant and loan 
        balances in the first year do not 
        cancel but are available for grants and 
        loans in the second year. 
        All money deposited in the 
        environmental fund for the metropolitan 
        solid waste landfill fee in accordance 
        with Minnesota Statutes, section 
        473.843, and not otherwise 
        appropriated, is appropriated to the 
        office of environmental assistance for 
        the purposes of Minnesota Statutes, 
        section 473.844. 
        $119,000 the first year and $119,000 
        the second year are for environmental 
        assistance grants or loans under 
        Minnesota Statutes, section 115A.0716. 
        Notwithstanding Minnesota Statutes, 
        section 16A.28, the appropriations 
        encumbered under contract on or before 
        June 30, 2005, for environmental 
        assistance grants awarded under 
        Minnesota Statutes, section 115A.0716, 
        and for technical and research 
        assistance under Minnesota Statutes, 
        section 115A.152, technical assistance 
        under Minnesota Statutes, section 
        115A.52, and pollution prevention 
        assistance under Minnesota Statutes, 
        section 115D.04, are available until 
        June 30, 2006.  
        $4,000,000 each year is from the 
        environmental fund for mixed municipal 
        solid waste processing payments under 
        Minnesota Statutes, section 115A.545. 
        The office of environmental assistance 
        shall, in consultation with 
        stakeholders, develop and report to the 
        legislative finance and policy 
        committees with jurisdiction over the 
        environment on an incentive-based 
        distribution approach for SCORE funding 
        to replace the allocation formula in 
        Minnesota Statutes, section 115A.557, 
        subdivision 2.  The office must submit 
        preliminary recommendations by January 
        15, 2004, and final recommendations by 
        January 15, 2005. 
        Sec. 4.  ZOOLOGICAL BOARD              6,681,000      6,681,000
                      Summary by Fund
        General                 6,557,000      6,557,000
        Natural Resources         124,000        124,000
        $124,000 the first year and $124,000 
        the second year are from the natural 
        resources fund from the revenue 
        deposited under Minnesota Statutes, 
        section 297A.94, paragraph (e), clause 
        (5).  This is a onetime appropriation. 
        Sec. 5.  NATURAL RESOURCES 
        Subdivision 1.  Total       
        Appropriation                        226,120,000    223,492,000 
                      Summary by Fund
        General              91,783,000    91,553,000
        Natural Resources    51,887,000    49,547,000
        Game and Fish        82,350,000    82,292,000
        Remediation             100,000       100,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Land and Mineral Resources
        Management
             7,494,000      7,494,000 
                      Summary by Fund
        General               6,451,000     6,451,000
        Natural Resources       156,000       156,000
        Game and Fish           887,000       887,000
        $275,000 the first year and $275,000 
        the second year are for iron ore 
        cooperative research, of which $137,500 
        the first year and $137,500 the second 
        year are available only as matched by 
        $1 of nonstate money for each $1 of 
        state money.  The match may be cash or 
        in-kind.  Any unencumbered balance 
        remaining in the first year does not 
        cancel but is available for the second 
        year. 
        $172,000 the first year and $172,000 
        the second year are for mineral 
        diversification. 
        $86,000 the first year and $86,000 the 
        second year are for minerals 
        cooperative environmental research, of 
        which $43,000 the first year and 
        $43,000 the second year are available 
        only as matched by $1 of nonstate money 
        for each $1 of state money.  The match 
        may be cash or in-kind.  Any 
        unencumbered balance remaining in the 
        first year does not cancel but is 
        available for the second year. 
        Subd. 3.  Water Resources Management
            11,446,000     10,736,000 
                      Summary by Fund
        General              11,186,000    10,456,000
        Natural Resources       280,000       280,000
        $108,000 the first year is for a grant 
        to the Lewis and Clark joint powers 
        board to acquire land for, and to 
        predesign, design, construct, furnish, 
        and equip a rural water system to serve 
        southwestern Minnesota, and to pay 
        additional project development costs 
        that are approved for federal 
        cost-share payment by the United States 
        Bureau of Reclamation, and is available 
        until spent.  This appropriation is 
        available when matched by $8 of federal 
        money and $1 of local money for each $1 
        of state money. 
        $210,000 the first year and $210,000 
        the second year are for grants 
        associated with the implementation of 
        the Red River mediation agreement. 
        $50,000 the first year is for analysis 
        of groundwater flows and aquifer 
        recharge in the state in order to 
        understand whether the appropriation of 
        groundwater is sustainable. 
        $625,000 the first year is a onetime 
        appropriation from the general fund for 
        grants to local units of government in 
        the area included in DR-1419 for the 
        state share of flood hazard mitigation 
        grants for flood damage reduction 
        studies, planning, engineering, and 
        publicly owned capital improvements to 
        prevent or alleviate flood damage under 
        Minnesota Statutes, section 103F.161.  
        This appropriation is available until 
        expended.  
        $65,000 the first year and $65,000 the 
        second year are for a grant to the 
        Mississippi headwaters board for up to 
        50 percent of the cost of implementing 
        the comprehensive plan for the upper 
        Mississippi within areas under its 
        jurisdiction.  
        $5,000 the first year and $5,000 the 
        second year are for payment to the 
        Leech Lake Band of Chippewa Indians to 
        implement its portion of the 
        comprehensive plan for the upper 
        Mississippi.  
        $125,000 the first year and $125,000 
        the second year are for the 
        construction of ring dikes under 
        Minnesota Statutes, section 103F.161.  
        The ring dikes may be publicly or 
        privately owned.  Any unencumbered 
        balance does not cancel at the end of 
        the first year and is available for the 
        second year. 
        Subd. 4.  Forest Management  
            33,066,000     33,066,000 
                      Summary by Fund
        General              32,824,000    32,824,000
        Game and Fish           242,000       242,000
        $7,650,000 the first year and 
        $7,650,000 the second year are for 
        prevention, presuppression, and 
        suppression costs of emergency 
        firefighting and other costs incurred 
        under Minnesota Statutes, section 
        88.12.  If the appropriation for either 
        year is insufficient to cover all costs 
        of presuppression and suppression, the 
        amount necessary to pay for these costs 
        during the biennium is appropriated 
        from the general fund.  By November 15 
        of each year, the commissioner of 
        natural resources shall submit a report 
        to the chairs of the house of 
        representatives ways and means 
        committee, the senate finance 
        committee, the environment and 
        agriculture budget division of the 
        senate finance committee, and the house 
        of representatives environment and 
        natural resources finance committee, 
        identifying all firefighting costs 
        incurred and reimbursements received in 
        the prior fiscal year.  The report must 
        be in a format agreed to by the house 
        environment finance committee chair, 
        the senate environment budget division 
        chair, the department, and the 
        department of finance.  These 
        appropriations may not be transferred.  
        Any reimbursement of firefighting 
        expenditures made to the commissioner 
        from any source other than federal 
        mobilizations shall be deposited into 
        the general fund. 
        $730,000 the first year and $730,000 
        the second year are for the forest 
        resources council for implementation of 
        the Sustainable Forest Resources Act. 
        $350,000 the first year and $350,000 
        the second year are for the FORIST 
        timber management information system 
        and for increased forestry management. 
        $242,000 the first year and $242,000 
        the second year are from the game and 
        fish fund to implement ecological 
        classification systems (ECS) standards 
        on forested landscapes.  This is a 
        onetime appropriation from revenue 
        deposited to the game and fish fund 
        under Minnesota Statutes, section 
        297A.94, paragraph (e), clause (1). 
        Subd. 5.  Parks and Recreation
        Management
            36,736,000     36,736,000 
                      Summary by Fund
        General              19,511,000    19,511,000
        Natural Resources    17,225,000    17,225,000
        $640,000 the first year and $640,000 
        the second year are from the water 
        recreation account in the natural 
        resources fund for state park 
        development projects. 
        $3,300,000 the first year and 
        $3,300,000 the second year are for a 
        grant to the metropolitan council for 
        metropolitan area regional parks 
        maintenance and operations. 
        $3,462,000 the first year and 
        $3,462,000 the second year are from the 
        natural resources fund for state park 
        and recreation area operations.  This 
        appropriation is from the revenue 
        deposited to the natural resources fund 
        under Minnesota Statutes, section 
        297A.94, paragraph (e), clause (2). 
        $4,152,000 the first year and 
        $4,152,000 the second year are from the 
        natural resources fund for a grant to 
        the metropolitan council for 
        metropolitan area regional parks and 
        trails maintenance and operations.  
        This appropriation is from the revenue 
        deposited to the natural resources fund 
        under Minnesota Statutes, section 
        297A.94, paragraph (e), clause (3). 
        $8,971,000 the first year and 
        $8,971,000 the second year are from the 
        state parks account in the natural 
        resources fund for state park and 
        recreation area operations. 
        $25,000 the first year and $25,000 the 
        second year are for a grant to the city 
        of Taylors Falls for fire and rescue 
        operations in support of Interstate 
        state park. 
        Subd. 6.  Trails and Waterways
        Management
            24,060,000     21,173,000 
                      Summary by Fund
        General               1,234,000     1,234,000
        Natural Resources    20,655,000    18,255,000
        Game and Fish         2,171,000     1,684,000
        $5,724,000 the first year and 
        $5,724,000 the second year are from the 
        snowmobile trails and enforcement 
        account in the natural resources fund 
        for snowmobile grants-in-aid. 
        $261,000 the first year and $261,000 
        the second year are from the water 
        recreation account in the natural 
        resources fund for a safe harbor 
        program on Lake Superior. 
        $690,000 the first year and $690,000 
        the second year are from the natural 
        resources fund for state trail 
        operations.  This appropriation is from 
        the revenue deposited to the natural 
        resources fund under Minnesota 
        Statutes, section 297A.94, paragraph 
        (e), clause (2).  This is a onetime 
        appropriation. 
        $553,000 the first year and $553,000 
        the second year are from the natural 
        resources fund for trail grants to 
        local units of government on land to be 
        maintained for at least 20 years for 
        the purposes of the grant.  This 
        appropriation is from the revenue 
        deposited to the natural resources fund 
        under Minnesota Statutes, section 
        297A.94, paragraph (e), clause (4).  
        This is a onetime appropriation. 
        The appropriation in Laws 2001, First 
        Special Session chapter 2, section 5, 
        subdivision 6, from the water 
        recreation account in the natural 
        resources fund for preconstruction, 
        acquisition, and staffing needs for the 
        Mississippi Whitewater trail authorized 
        by Minnesota Statutes, section 85.0156, 
        is available until June 30, 2005. 
        Upon a showing of need, the 
        commissioner of natural resources may 
        use up to 50 percent of a snowmobile 
        maintenance and grooming grant under 
        Minnesota Statutes, section 84.83, that 
        was available as of December 31, 2002, 
        to reimburse the intended recipient for 
        expenses incurred in the purchase or 
        lease of snowmobile trail grooming 
        equipment to be used for grant-in-aid 
        trails.  The costs must be incurred 
        between July 1, 2002, and June 30, 
        2003, and recipients must provide 
        acceptable documentation of the costs 
        to the commissioner.  All applications 
        for reimbursement under this section 
        must be received no later than 
        September 1, 2003. 
        $1,000,000 the first year and $600,000 
        the second year are from the natural 
        resources fund for off-highway vehicle 
        trail designation, development, 
        maintenance, and repair.  Of this 
        amount, $600,000 the first year and 
        $360,000 the second year are from the 
        all-terrain vehicle account, $50,000 
        the first year and $30,000 the second 
        year are from the off-highway 
        motorcycle account, and $350,000 the 
        first year and $210,000 the second year 
        are from the off-road vehicle account. 
        $1,000,000 the first year is from the 
        natural resources fund for the Iron 
        Range off-highway vehicle recreation 
        area.  Of this amount, $600,000 is from 
        the all-terrain vehicle account, 
        $350,000 is from the off-road vehicle 
        account, and $50,000 is from the 
        off-highway motorcycle account.  This 
        appropriation is available until 
        expended. 
        By August 1, 2003, the commissioner of 
        finance shall transfer $475,000 from 
        the all-terrain vehicle account, 
        $20,000 from the off-highway motorcycle 
        account, and $5,000 from the off-road 
        vehicle account to the off-highway 
        vehicle damage account in Minnesota 
        Statutes, section 84.780. 
        $300,000 is from the snowmobile trails 
        and enforcement account in the natural 
        resources fund to acquire permanent 
        easements for a snowmobile trail to 
        connect the Willard Munger State Trail 
        in Hermantown to the North Shore State 
        Trail in Duluth.  This is a onetime 
        appropriation and is available until 
        expended. 
        $700,000 the first year is from the 
        water recreation account in the natural 
        resources fund for a cooperative 
        project with the U.S. Army Corps of 
        Engineers to develop the Mississippi 
        Whitewater Park.  Of this amount, 
        $525,000 is available to provide a 
        match for $975,000 of federal funds, in 
        a ratio of 65 percent federal to 35 
        percent state, for construction design 
        development.  $175,000 is available for 
        use by the department for project 
        management, including costs for the 
        project review team, real estate 
        acquisition, staff coordination of the 
        project, and legal services. 
        Subd. 7.  Fish Management
            28,979,000     29,010,000 
                      Summary by Fund
        General                 455,000       455,000
        Natural Resources       197,000       197,000
        Game and Fish        28,327,000    28,358,000
        $402,000 the first year and $402,000 
        the second year are for resource 
        population surveys in the 1837 treaty 
        area.  Of this amount, $260,000 the 
        first year and $260,000 the second year 
        are from the game and fish fund. 
        $177,000 the first year and $177,000 
        the second year are for the reinvest in 
        Minnesota programs of game and fish, 
        critical habitat, and wetlands 
        established under Minnesota Statutes, 
        section 84.95, subdivision 2. 
        $1,030,000 the first year and 
        $1,030,000 the second year are from the 
        trout and salmon management account for 
        only the purposes specified in 
        Minnesota Statutes, section 97A.075, 
        subdivision 3. 
        $136,000 the first year and $136,000 
        the second year are available for 
        aquatic plant restoration. 
        $3,998,000 the first year and 
        $3,998,000 the second year are from the 
        heritage enhancement account in the 
        game and fish fund for only the 
        purposes specified in Minnesota 
        Statutes, section 297A.94, paragraph 
        (e), clause (1).  This appropriation is 
        from the revenue deposited to the game 
        and fish fund under Minnesota Statutes, 
        section 297A.94, paragraph (e), clause 
        (1). 
        Notwithstanding Minnesota Statutes, 
        section 16A.28, the appropriations 
        encumbered under contract on or before 
        June 30, 2005, for aquatic restoration 
        grants in this subdivision are 
        available until June 30, 2006. 
        Subd. 8.  Wildlife Management
            23,865,000     24,180,000 
                      Summary by Fund
        General               1,416,000     1,416,000
        Game and Fish        22,449,000    22,764,000
        $565,000 the first year and $565,000 
        the second year are for the reinvest in 
        Minnesota programs of game and fish, 
        critical habitat, and wetlands 
        established under Minnesota Statutes, 
        section 84.95, subdivision 2. 
        $1,830,000 the first year and 
        $2,030,000 the second year are from the 
        wildlife acquisition surcharge account 
        for only the purposes specified in 
        Minnesota Statutes, section 97A.071, 
        subdivision 2a. 
        $1,269,000 the first year and 
        $1,269,000 the second year are from the 
        deer habitat improvement account for 
        only the purposes specified in 
        Minnesota Statutes, section 97A.075, 
        subdivision 1, paragraph (b). 
        $148,000 the first year and $148,000 
        the second year are from the deer and 
        bear management account for only the 
        purposes specified in Minnesota 
        Statutes, section 97A.075, subdivision 
        1, paragraph (c). 
        $808,000 the first year and $808,000 
        the second year are from the waterfowl 
        habitat improvement account for only 
        the purposes specified in Minnesota 
        Statutes, section 97A.075, subdivision 
        2. 
        $546,000 the first year and $546,000 
        the second year are from the pheasant 
        habitat improvement account for only 
        the purposes specified in Minnesota 
        Statutes, section 97A.075, subdivision 
        4.  
        $120,000 the first year and $120,000 
        the second year are from the wild 
        turkey management account for only the 
        purposes specified in Minnesota 
        Statutes, section 97A.075, subdivision 
        5.  Of this amount, $8,000 the first 
        year and $8,000 the second year are 
        appropriated from the game and fish 
        fund for transfer to the wild turkey 
        management account for purposes 
        specified in Minnesota Statutes, 
        section 97A.075, subdivision 5. 
        $2,560,000 the first year and 
        $2,560,000 the second year are from the 
        heritage enhancement account in the 
        game and fish fund for only the 
        purposes specified in Minnesota 
        Statutes, section 297A.94, paragraph 
        (e), clause (1).  If chronic wasting 
        disease (CWD) is found in the wild deer 
        herd, these appropriations may be used 
        for wildlife health management costs 
        related to fighting the spread of CWD.  
        This appropriation is from the revenue 
        deposited to the game and fish fund 
        under Minnesota Statutes, section 
        297A.94, paragraph (e), clause (1). 
        $13,000 the first year and $13,000 the 
        second year are to publicize the 
        critical habitat license plate match 
        program. 
        Notwithstanding Minnesota Statutes, 
        section 297A.94, this appropriation may 
        be used for hunter recruitment and 
        retention and public land user 
        facilities. 
        Notwithstanding Minnesota Statutes, 
        section 16A.28, the appropriations 
        encumbered under contract on or before 
        June 30, 2005, for wildlife habitat 
        grants in this subdivision are 
        available until June 30, 2006. 
        Subd. 9.  Ecological Services
             8,677,000      8,745,000 
                      Summary by Fund
        General               3,085,000     3,085,000
        Natural Resources     2,572,000     2,632,000
        Game and Fish         3,020,000     3,028,000
        $1,028,000 the first year and 
        $1,028,000 the second year are from the 
        nongame wildlife management account in 
        the natural resources fund for the 
        purpose of nongame wildlife management. 
        $224,000 the first year and $224,000 
        the second year are for population and 
        habitat objectives of the nongame 
        wildlife management program. 
        $477,000 the first year and $477,000 
        the second year are for the reinvest in 
        Minnesota programs of game and fish, 
        critical habitat, and wetlands 
        established under Minnesota Statutes, 
        section 84.95, subdivision 2. 
        $1,263,000 the first year and 
        $1,263,000 the second year are from the 
        heritage enhancement account in the 
        game and fish fund for only the 
        purposes specified in Minnesota 
        Statutes, section 297A.94, paragraph 
        (e), clause (1).  This appropriation is 
        from the revenue deposited to the game 
        and fish fund under Minnesota Statutes, 
        section 297A.94, paragraph (e), clause 
        (1). 
        Subd. 10.  Enforcement
            27,543,000     28,111,000 
                      Summary by Fund
        General               3,487,000     3,987,000
        Natural Resources     6,786,000     6,786,000
        Game and Fish        17,170,000    17,238,000
        Remediation             100,000       100,000
        $1,082,000 the first year and 
        $1,082,000 the second year are from the 
        water recreation account in the natural 
        resources fund for grants to counties 
        for boat and water safety. 
        $100,000 the first year and $100,000 
        the second year are from the 
        remediation fund for solid waste 
        enforcement activities under Minnesota 
        Statutes, section 116.073. 
        $315,000 the first year and $315,000 
        the second year are from the snowmobile 
        trails and enforcement account in the 
        natural resources fund for grants to 
        local law enforcement agencies for 
        snowmobile enforcement activities. 
        $1,164,000 the first year and 
        $1,164,000 the second year are from the 
        heritage enhancement account in the 
        game and fish fund for only the 
        purposes specified in Minnesota 
        Statutes, section 297A.94, paragraph 
        (e), clause (1).  This appropriation is 
        from the revenue deposited to the game 
        and fish fund under Minnesota Statutes, 
        section 297A.94, paragraph (e), clause 
        (1). 
        Overtime shall be distributed to 
        conservation officers at historical 
        levels; however, a reasonable reduction 
        or addition may be made to the 
        officer's allocation, if justified, 
        based on an individual officer's 
        workload.  If funding for enforcement 
        is reduced because of an unallotment, 
        the overtime bank may be reduced in 
        proportion to reductions made in other 
        areas of the budget. 
        $700,000 the first year and $700,000 
        the second year are from the natural 
        resources fund for off-highway vehicle 
        enforcement.  Of this amount, $665,000 
        the first year and $665,000 the second 
        year are from the all-terrain vehicle 
        account, $28,000 the first year and 
        $28,000 the second year are from the 
        off-highway motorcycle account, and 
        $7,000 the first year and $7,000 the 
        second year are from the off-road 
        vehicle account. 
        $130,000 the first year and $130,000 
        the second year are from the 
        all-terrain vehicle account in the 
        natural resources fund for 
        administration of the all-terrain 
        vehicle environmental and safety 
        education and training program under 
        Minnesota Statutes, section 84.925. 
        $225,000 the first year and $225,000 
        the second year are from the natural 
        resources fund for grants to county law 
        enforcement agencies for off-highway 
        vehicle enforcement and public 
        education activities based on 
        off-highway vehicle use in the county.  
        Of this amount, $213,000 each year is 
        from the all-terrain vehicle account; 
        $11,000 each year is from the 
        off-highway motorcycle account; and 
        $1,000 each year is from the off-road 
        vehicle account.  The county 
        enforcement agencies may use money 
        received under this appropriation to 
        make grants to other local enforcement 
        agencies within the county that have a 
        high concentration of off-highway 
        vehicle use.  Of this appropriation, 
        $25,000 each year is for administration 
        of these grants. 
        Subd. 11.  Operations Support
            24,234,000     24,241,000 
                      Summary by Fund
        General              12,134,000    12,134,000
        Natural Resources     4,016,000     4,016,000
        Game and Fish         8,084,000     8,091,000
        $189,000 the first year and $189,000 
        the second year are for technical 
        assistance and grants to assist local 
        government units and organizations in 
        the metropolitan area to acquire and 
        develop natural areas and greenways. 
        $375,000 the first year and $375,000 
        the second year are for the community 
        assistance program to provide for 
        technical assistance and regional 
        resource enhancement grants. 
        $246,000 the first year and $246,000 
        the second year are from the natural 
        resources fund for grants to be divided 
        equally between the city of St. Paul 
        for the Como Zoo and Conservatory and 
        the city of Duluth Zoo.  This 
        appropriation is from the revenue 
        deposited to the natural resources fund 
        under Minnesota Statutes, section 
        297A.94, paragraph (e), clause (5).  
        This is a onetime appropriation. 
        The commissioner may allow payments to 
        be made by credit or debit cards, at 
        the customer's discretion, with a 
        charge of a reasonable fee.  Money 
        received from the fees is appropriated 
        to the commissioner to cover the costs 
        of processing payments from credit and 
        debit cards. 
        Any unencumbered balance for state 
        project reimbursements received in 
        fiscal year 2003 from the federal Land 
        and Water Conservation Fund Act and 
        deposited in the state land and water 
        conservation account in the future 
        resources fund shall be transferred to 
        the account in the natural resources 
        fund.  This provision is effective the 
        day following final enactment. 
        Sec. 6.  MINNESOTA
        CONSERVATION CORPS                       840,000        840,000 
                      Summary by Fund
        General                 350,000       350,000
        Natural Resources       490,000       490,000
        Sec. 7.  BOARD OF WATER AND 
        SOIL RESOURCES                        15,432,000     15,431,000
        $4,102,000 the first year and 
        $4,102,000 the second year are for 
        natural resources block grants to local 
        governments. 
        The board may reduce the amount of the 
        natural resources block grant to a 
        county by an amount equal to any 
        reduction in the county's general 
        services allocation to a soil and water 
        conservation district from the county's 
        previous year allocation when the board 
        determines that the reduction was 
        disproportionate. 
        Grants must be matched with a 
        combination of local cash or in-kind 
        contributions.  The base grant portion 
        related to water planning must be 
        matched by an amount that would be 
        raised by a levy under Minnesota 
        Statutes, section 103B.3369. 
        $3,566,000 the first year and 
        $3,566,000 the second year are for 
        grants to soil and water conservation 
        districts for general purposes, 
        nonpoint engineering, and 
        implementation of the Reinvest in 
        Minnesota conservation reserve 
        program.  Upon approval of the board, 
        expenditures may be made from these 
        appropriations for supplies and 
        services benefiting soil and water 
        conservation districts. 
        $3,285,000 the first year and 
        $3,285,000 the second year are for 
        grants to soil and water conservation 
        districts for cost-sharing contracts 
        for erosion control and water quality 
        management.  Of this amount, at least 
        $1,500,000 the first year and 
        $1,500,000 the second year are for 
        grants for cost-sharing contracts for 
        water quality management on feedlots.  
        Any unencumbered balance in the board's 
        program of grants does not cancel at 
        the end of the first year and is 
        available for the second year for the 
        same grant program.  This appropriation 
        is available until expended.  If the 
        appropriation in either year is 
        insufficient, the appropriation in the 
        other year is available for it.  
        $105,000 the first year and $105,000 
        the second year are for grants to 
        watershed districts and other local 
        units of government in the southern 
        Minnesota River basin study area 2 for 
        floodplain management.  If the 
        appropriation in either year is 
        insufficient, the appropriation in the 
        other year is available for it. 
        $100,000 the first year and $100,000 
        the second year are for a grant to the 
        Red River basin commission to develop a 
        Red River basin plan and to coordinate 
        water management activities in the 
        states and provinces bordering the Red 
        River.  The unencumbered balance in the 
        first year does not cancel but is 
        available for the second year. 
        Sec. 8.  SCIENCE MUSEUM     
        OF MINNESOTA                             750,000        750,000 
        Sec. 9.  MINNESOTA RESOURCES 
        Subdivision 1.  Total
        Appropriation                         17,625,000     15,050,000
                      Summary by Fund
        State Land and
        Water Conservation
        Account (LAWCON)      2,000,000         -0-  
        Environment and 
        Natural Resources
        Trust Fund           15,050,000    15,050,000
        Oil Overcharge
        Money in the Special
        Revenue Fund            519,000         -0-
        Great Lakes
        Protection Account       56,000         -0-
        Appropriations from the oil overcharge 
        money in the special revenue fund and 
        Great Lakes protection account are 
        available for either year of the 
        biennium. 
        For appropriations from the environment 
        and natural resources trust fund, any 
        unencumbered balance remaining in the 
        first year does not cancel and is 
        available for the second year of the 
        biennium. 
        Unless otherwise provided, the amounts 
        in this section are available until 
        June 30, 2005, when projects must be 
        completed and final products delivered. 
        Subd. 2.  Definitions 
        (a) "State Land and Water Conservation 
        Account (LAWCON)" means the state land 
        and water conservation account in the 
        natural resources fund. 
        (b) "Great Lakes protection account" 
        means the Great Lakes protection 
        account referred to in Minnesota 
        Statutes, section 116Q.02, subdivision 
        1. 
        (c) "Trust fund" means the Minnesota 
        environment and natural resources trust 
        fund referred to in Minnesota Statutes, 
        section 116P.02, subdivision 6. 
        (d) "Oil overcharge money" means the 
        money referred to in Minnesota 
        Statutes, section 4.071, subdivision 2. 
        Subd. 3.  Administration                 412,000        406,000 
                      Summary by Fund
        Trust Fund              412,000       406,000
        (a) Legislative Commission on Minnesota 
        Resources 
        $326,000 the first year and $346,000 
        the second year are from the trust fund 
        for administration as provided in 
        Minnesota Statutes, section 116P.09, 
        subdivision 5. 
        (b) LCMR Study Commission on Park 
        Systems 
        $26,000 the first year is from the 
        trust fund to the legislative 
        commission on Minnesota resources to 
        evaluate the use of fees to assist the 
        financial stability and the potential 
        of fees to provide for self-sufficiency 
        in Minnesota's park systems, including 
        state parks, metropolitan regional 
        parks, and rural regional parks in 
        greater Minnesota.  The study 
        commission will report to the chairs of 
        the senate and house environment 
        finance committees by February 16, 2004.
        (c) Contract Administration 
        $60,000 the first year and $60,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for contract administration activities 
        assigned to the commissioner in this 
        section.  This appropriation is 
        available until June 30, 2006. 
        Subd. 4.  Advisory Committee              23,000         22,000 
        $23,000 the first year and $22,000 the 
        second year are from the trust fund to 
        the legislative commission on Minnesota 
        resources for expenses of the citizen 
        advisory committee as provided in 
        Minnesota Statutes, section 116P.06. 
        Subd. 5.  Fish and Wildlife 
        Habitat                                6,223,000      6,223,000 
                      Summary by Fund
        Trust Fund            6,223,000     6,223,000
        (a) Restoring Minnesota's Fish and 
        Wildlife Habitat Corridors - Phase II 
        $2,425,000 the first year and 
        $2,425,000 the second year are from the 
        trust fund to the commissioner of 
        natural resources for the second 
        biennium for acceleration of agency 
        programs and cooperative agreements 
        with Minnesota Deer Hunters 
        Association, Ducks Unlimited, Inc., 
        National Wild Turkey Federation, 
        Pheasants Forever, the Nature 
        Conservancy, Minnesota Land Trust, the 
        Trust for Public Land, Minnesota Valley 
        National Wildlife Refuge Trust, Inc., 
        U.S. Fish and Wildlife Service, U.S. 
        Bureau of Indian Affairs, Red Lake Band 
        of Chippewa, Leech Lake Band of 
        Chippewa, Fond du Lac Band of Chippewa, 
        USDA-Natural Resources Conservation 
        Service, and the board of water and 
        soil resources to plan, restore, and 
        acquire fragmented landscape corridors 
        that connect areas of quality habitat 
        to sustain fish, wildlife, and plants.  
        As part of the required work program, 
        criteria and priorities for planned 
        acquisition and restoration activities 
        must be submitted to the legislative 
        commission on Minnesota resources for 
        review and approval before expenditure. 
        Expenditures are limited to the 11 
        project areas as defined in the work 
        program.  Land acquired with this 
        appropriation must be sufficiently 
        improved to meet at least minimum 
        habitat and facility management 
        standards as determined by the 
        commissioner of natural resources.  
        This appropriation may not be used for 
        the purchase of residential structures 
        unless expressly approved in the work 
        program.  Any land acquired in fee 
        title by the commissioner of natural 
        resources with money from this 
        appropriation must be designated:  (1) 
        as an outdoor recreation unit under 
        Minnesota Statutes, section 86A.07; or 
        (2) as provided in Minnesota Statutes, 
        sections 89.018, subdivision 2, 
        paragraph (a); 97A.101; 97A.125; 
        97C.001; and 97C.011.  The commissioner 
        may so designate any lands acquired in 
        less than fee title.  This 
        appropriation is available until June 
        30, 2006, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program. 
        (b) Metropolitan Area Wildlife 
        Corridors 
        $2,425,000 the first year and 
        $2,425,000 the second year are from the 
        trust fund to the commissioner of 
        natural resources.  $3,700,000 of this 
        appropriation is for acceleration of 
        agency programs and cooperative 
        agreements with the Trust for Public 
        Land, Ducks Unlimited, Inc., Friends of 
        the Mississippi River, Great River 
        Greening, Minnesota Land Trust, and 
        Minnesota Valley National Wildlife 
        Refuge Trust, Inc., for the purposes of 
        planning, improving, and protecting 
        important natural areas in the 
        metropolitan region, as defined by 
        Minnesota Statutes, section 473.121, 
        subdivision 2, through grants, 
        contracted services, conservation 
        easements, and fee acquisition.  
        $500,000 of this appropriation is for 
        an agreement with the city of Ramsey 
        for the Trott Brook Corridor 
        acquisition.  $800,000 of this 
        appropriation is for an agreement with 
        the Rice Creek Watershed District for 
        Hardwood Creek acquisition and 
        restoration.  Land acquired with this 
        appropriation must be sufficiently 
        improved to meet at least minimum 
        management standards as determined by 
        the commissioner of natural resources.  
        As part of the required work program, 
        criteria and priorities for planned 
        acquisition and restoration activities 
        must be submitted to the legislative 
        commission on Minnesota resources for 
        review and approval before 
        expenditure.  Expenditures are limited 
        to the identified project areas as 
        defined in the work program.  This 
        appropriation may not be used for the 
        purchase of residential structures 
        unless expressly approved in the work 
        program.  Any land acquired in fee 
        title by the commissioner of natural 
        resources with money from this 
        appropriation must be designated:  (1) 
        as an outdoor recreation unit under 
        Minnesota Statutes, section 86A.07; or 
        (2) as provided in Minnesota Statutes, 
        sections 89.018, subdivision 2, 
        paragraph (a); 97A.101; 97A.125; 
        97C.001; and 97C.011.  The commissioner 
        may so designate any lands acquired in 
        less than fee title.  This 
        appropriation is available until June 
        30, 2006, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program.  
        (c) Restoring RIM Match 
        $200,000 the first year and $200,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for the RIM critical habitat 
        matching program to acquire and enhance 
        fish, wildlife, and native plant 
        habitat.  Land acquired with this 
        appropriation must be sufficiently 
        improved to meet at least minimum 
        management standards as determined by 
        the commissioner of natural resources.  
        Up to $27,000 of this appropriation is 
        for matching nongame program activities.
        (d) Acquisition and Development of 
        Scientific and Natural Areas 
        $240,000 the first year and $240,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to acquire and develop lands 
        with natural features of state 
        ecological or geological significance 
        in accordance with the scientific and 
        natural area program long-range plan.  
        Land acquired with this appropriation 
        must be sufficiently improved to meet 
        at least minimum management standards 
        as determined by the commissioner of 
        natural resources. 
        (e) Forest and Prairie Stewardship of 
        Public and Private Lands 
        $196,000 the first year and $196,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources.  $147,000 of this 
        appropriation is to develop stewardship 
        plans for private forested lands and 
        implement stewardship plans on a 
        cost-share basis.  $245,000 of this 
        appropriation is to develop stewardship 
        plans on private prairie lands and 
        implement prairie management on public 
        and private lands.  This appropriation 
        is available until June 30, 2006, at 
        which time the project must be 
        completed and final products delivered, 
        unless an earlier date is specified in 
        the work program. 
        (f) Local Initiative 
        Grants-Conservation Partners and 
        Environmental Partnerships 
        $256,000 the first year and $256,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for matching grants of up to 
        $20,000 to local government and private 
        organizations for enhancement, 
        research, and education associated with 
        natural habitat and environmental 
        service projects.  This appropriation 
        is available until June 30, 2006, at 
        which time the project must be 
        completed and final products delivered, 
        unless an earlier date is specified in 
        the work program. 
        (g) Minnesota ReLeaf Community Forest 
        Development and Protection 
        $257,000 the first year and $257,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for acceleration of the 
        agency program and a cooperative 
        agreement with Tree Trust to protect 
        forest resources, develop 
        inventory-based management plans, and 
        provide matching grants to communities 
        to plant native trees.  At least 
        $350,000 of this appropriation must be 
        used for grants to communities.  For 
        the purposes of this paragraph, the 
        match must be a nonstate contribution, 
        but may be either cash or qualifying 
        in-kind.  This appropriation is 
        available until June 30, 2006, at which 
        time the project must be completed and 
        final projects delivered, unless an 
        earlier date is specified in the work 
        program. 
        (h) Developing Pheromones for Use in 
        Carp Control 
        $50,000 the first year and $50,000 the 
        second year are from the trust fund to 
        the University of Minnesota for 
        research on new options for controlling 
        carp.  This appropriation is available 
        until June 30, 2006, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program. 
        (i) Biological Control of European 
        Buckthorn and Spotted Knapweed 
        $99,000 the first year and $99,000 the 
        second year are from the trust fund.  
        Of this amount, $54,000 the first year 
        and $55,000 the second year are to the 
        commissioner of natural resources for 
        research to evaluate potential insects 
        for biological control of invasive 
        European buckthorn species.  $45,000 
        the first year and $44,000 the second 
        year are to the commissioner of 
        agriculture to assess the effectiveness 
        of spotted knapweed biological control 
        agents.  This appropriation is 
        available until June 30, 2006, at which 
        time the project must be completed and 
        final products delivered, unless an 
        earlier date is specified in the work 
        program. 
        (j) Resources for Redevelopment of 
        Brownfields to Greenspaces 
        $75,000 the first year and $75,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with Minnesota 
        Environmental Initiatives to identify 
        and assess redevelopment of brownfields 
        for recreation, habitat, and natural 
        resource reuse. 
        Subd. 6.  Recreation                   7,622,000      5,870,000 
                      Summary by Fund
        Trust Fund            5,622,000     5,870,000
        State Land and Conservation 
        Account (LAWCON)      2,000,000
        (a) State Park and Recreation Area Land 
        Acquisition 
        $750,000 the first year and $750,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to acquire in-holdings for 
        state park and recreation areas.  Land 
        acquired with this appropriation must 
        be sufficiently improved to meet at 
        least minimum management standards as 
        determined by the commissioner of 
        natural resources.  This appropriation 
        is available until June 30, 2006, at 
        which time the project must be 
        completed and final products delivered, 
        unless an earlier date is specified in 
        the work program. 
        (b) LAWCON Federal Reimbursements 
        $2,000,000 is from the state land and 
        water conservation account (LAWCON) in 
        the natural resources fund to the 
        commissioner of natural resources for 
        eligible state projects and 
        administrative and planning activities 
        consistent with Minnesota Statutes, 
        section 116P.14, and the federal Land 
        and Water Conservation Fund Act.  This 
        appropriation is contingent upon 
        receipt of the federal obligation and 
        remains available until June 30, 2006, 
        at which time the project must be 
        completed and final products delivered, 
        unless an earlier date is specified in 
        the work program. 
        (c) Local Initiative Grants-Parks and 
        Natural Areas 
        $1,290,000 the first year and 
        $1,289,000 the second year are from the 
        trust fund to the commissioner of 
        natural resources for matching grants 
        to local governments for acquisition 
        and development of natural and scenic 
        areas and local parks as provided in 
        Minnesota Statutes, section 85.019, 
        subdivisions 2 and 4a, and regional 
        parks outside of the metropolitan 
        area.  Grants may provide up to 50 
        percent of the nonfederal share of the 
        project cost, except nonmetropolitan 
        regional park grants may provide up to 
        60 percent of the nonfederal share of 
        the project cost.  The commission will 
        monitor the grants for approximate 
        balance over extended periods of time 
        between the metropolitan area, under 
        Minnesota Statutes, section 473.121, 
        subdivision 2, and the nonmetropolitan 
        area through work program oversight and 
        periodic allocation decisions.  For the 
        purposes of this paragraph, the match 
        must be a nonstate contribution, but 
        may be either cash or qualifying 
        in-kind.  Recipients may receive 
        funding for more than one project in 
        any given grant period.  This 
        appropriation is available until June 
        30, 2006, at which time the project 
        must be completed and final products 
        delivered. 
        (d) Metropolitan Regional Parks 
        Acquisition, Rehabilitation, and 
        Development 
        $1,670,000 the first year and 
        $1,669,000 the second year are from the 
        trust fund to the commissioner of 
        natural resources for an agreement with 
        the metropolitan council for subgrants 
        for the acquisition, development, and 
        rehabilitation in the metropolitan 
        regional park system, consistent with 
        the metropolitan council regional 
        recreation open space capital 
        improvement plan.  This appropriation 
        may not be used for the purchase of 
        residential structures.  This 
        appropriation may be used to reimburse 
        implementing agencies for acquisition 
        of nonresidential property as expressly 
        approved in the work program.  This 
        appropriation is available until June 
        30, 2006, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program.  In 
        addition, if a project financed under 
        this program receives a federal grant, 
        the availability of the financing from 
        this paragraph for that project is 
        extended to equal the period of the 
        federal grant. 
        (e) Local and Regional Trail Grant 
        Initiative Program 
        $160,000 the first year and $160,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to provide matching grants to 
        local units of government for the cost 
        of acquisition, development, 
        engineering services, and enhancement 
        of existing and new trail facilities.  
        This appropriation is available until 
        June 30, 2006, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program.  
        In addition, if a project financed 
        under this program receives a federal 
        grant, the availability of the 
        financing from this paragraph for that 
        project is extended to equal the period 
        of the federal grant.  
        (f) Gitchi-Gami State Trail 
        $650,000 the first year and $650,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources, in cooperation with the 
        Gitchi-Gami Trail Association, for the 
        third biennium, to design and construct 
        approximately five miles of Gitchi-Gami 
        state trail segments.  This 
        appropriation must be matched by at 
        least $400,000 of nonstate money.  The 
        availability of the financing from this 
        paragraph is extended to equal the 
        period of any federal money received. 
        (g) Water Recreation:  Boat Access, 
        Fishing Piers, and Shore-fishing 
        $450,000 the first year and $700,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to acquire and develop public 
        water access sites statewide, construct 
        shore-fishing and pier sites, and 
        restore shorelands at public accesses.  
        This appropriation is available until 
        June 30, 2006, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program. 
        (h) Mesabi Trail 
        $190,000 the first year and $190,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with St. 
        Louis and Lake Counties Regional Rail 
        Authority for the sixth biennium to 
        acquire and develop segments of the 
        Mesabi trail.  If a federal grant is 
        received, the availability of the 
        financing from this paragraph is 
        extended to equal the period of the 
        federal grant. 
        (i) Linking Communities Design, 
        Technology, and DNR Trail Resources 
        $92,000 the first year and $92,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with the University of 
        Minnesota to provide designs for up to 
        three state trails incorporating 
        recreation, natural, and cultural 
        features. 
        (j) Ft. Ridgley Historic Site 
        Interpretive Trail 
        $75,000 the first year and $75,000 the 
        second year are from the trust fund to 
        the Minnesota historical society to 
        construct a trail through the original 
        fort site and install interpretive 
        markers.  This appropriation is 
        available until June 30, 2006, at which 
        time the project must be completed and 
        final products delivered, unless an 
        earlier date is specified in the work 
        program. 
        (k) Development and Rehabilitation of 
        Minnesota Shooting Ranges 
        $120,000 the first year and $120,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to provide technical 
        assistance and matching cost-share 
        grants to local recreational shooting 
        and archery clubs for the purpose of 
        developing or rehabilitating shooting 
        and archery facilities for public use.  
        Recipient facilities must be open to 
        the general public at reasonable times 
        and for a reasonable fee on a walk-in 
        basis.  This appropriation is available 
        until June 30, 2006, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program.  
        (l) Land Acquisition, Minnesota 
        Landscape Arboretum 
        $175,000 the first year and $175,000 
        the second year are from the trust fund 
        to the University of Minnesota for an 
        agreement with the University of 
        Minnesota Landscape Arboretum 
        Foundation for the fifth biennium to 
        acquire in-holdings within the 
        arboretum's boundary.  This 
        appropriation must be matched by an 
        equal amount of nonstate money.  This 
        appropriation is available until June 
        30, 2006, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program. 
        Subd. 7.  Water Resources              1,198,000        899,000 
                      Summary by Fund
        Trust Fund            1,142,000       899,000
        Great Lakes Protection 
        Account                  56,000             
        (a) Local Water Planning Matching 
        Challenge Grants 
        $222,000 the first year and $222,000 
        the second year are from the trust fund 
        and $56,000 is from the Great Lakes 
        protection account to the board of 
        water and soil resources to accelerate 
        the local water planning challenge 
        grant program under Minnesota Statutes, 
        sections 103B.3361 to 103B.3369, 
        through matching grants to implement 
        high-priority activities in 
        comprehensive water management plans, 
        plan development guidance, and regional 
        resource assessments.  For the purposes 
        of this paragraph, the match must be a 
        nonstate contribution, but may be 
        either cash or qualifying in-kind.  
        This appropriation is available until 
        June 30, 2006, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program. 
        (b) Accelerating and Enhancing Surface 
        Water Monitoring for Lakes and Streams 
        $370,000 the first year and $370,000 
        the second year are from the trust fund 
        to the commissioner of the pollution 
        control agency for acceleration of 
        agency programs and cooperative 
        agreements with the Minnesota Lakes 
        Association, Rivers Council of 
        Minnesota, the Minnesota Initiative 
        Foundation, and the University of 
        Minnesota to accelerate monitoring 
        efforts through assessments, citizen 
        training, and implementation grants.  
        This appropriation is available until 
        June 30, 2006, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program. 
        (c) Intercommunity Groundwater 
        Protection 
        $62,000 the first year and $63,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with Washington county 
        for groundwater monitoring, modeling, 
        and implementation of management 
        strategies. 
        (d) TAPwaters:  Technical Assistance 
        Program for Watersheds 
        $80,000 the first year and $80,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with the Science 
        Museum of Minnesota to assess the St. 
        Croix river and its tributaries to 
        identify solutions to pollution 
        threats.  This appropriation is 
        available until June 30, 2006, at which 
        time the project must be completed and 
        final products delivered, unless an 
        earlier date is specified in the work 
        program. 
        (e) Wastewater Phosphorus Control and 
        Reduction Initiative 
        $392,000 the first year and $148,000 
        the second year are from the trust fund 
        to the commissioner of the pollution 
        control agency to study human causes of 
        excess phosphorus and for cooperation 
        and an agreement with the Minnesota 
        environmental science and economic 
        review board to assess phosphorus 
        reduction techniques at wastewater 
        treatment plants.  
        (f) Maintaining Zooplankton (Daphnia) 
        for Water Quality:  Square Lake 
        $16,000 the first year and $16,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with Marine On St. 
        Croix water management organization to 
        determine whether trout predation on 
        Daphnia significantly affects Daphnia 
        abundance and water quality of Square 
        lake, Washington county.  This 
        appropriation is available until June 
        30, 2006, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program. 
        Subd. 8.  Land Use and Natural  
        Resource Information                     691,000        691,000 
                      Summary by Fund
        Trust Fund              691,000       691,000
        (a) Minnesota County Biological Survey 
        $450,000 the first year and $450,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for the ninth biennium to 
        accelerate the survey that identifies 
        significant natural areas and 
        systematically collects and interprets 
        data on the distribution and ecology of 
        native plant communities, rare plants, 
        and rare animals. 
        (b) Updating Outmoded Soil Survey 
        $118,000 the first year and $118,000 
        the second year are from the trust fund 
        to the board of water and soil to 
        continue updating and digitizing 
        outmoded soil surveys in Fillmore, 
        Goodhue, Dodge, and Wabasha counties in 
        southeast Minnesota.  Participating 
        counties must provide a cost share as 
        reflected in the work program.  This 
        appropriation is available until June 
        30, 2006, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program. 
        (c) Mesabi Iron Range Geologic and 
        Hydrologic Map and Databases 
        $123,000 the first year and $123,000 
        the second year are from the trust 
        fund.  $58,000 the first year and 
        $57,000 the second year of this 
        appropriation are to the commissioner 
        of natural resources to develop a 
        database of hydrogeologic data across 
        the Mesabi iron range.  $65,000 the 
        first year and $66,000 the second year 
        are to the Minnesota geological survey 
        at the University of Minnesota for 
        geologic and hydrogeologic maps of the 
        Mesabi iron range. 
        Subd. 9.  Agriculture and Natural 
        Resource Industries                      311,000      311,000   
        Native Plants and Alternative Crops for 
        Water Quality 
        $311,000 the first year and $311,000 
        the second year are from the trust fund 
        to the board of water and soil 
        resources for agreements with the Blue 
        Earth river basin initiative and the 
        University of Minnesota to accelerate 
        the use of native plants and 
        alternative crops through easements, 
        demonstration, research, and 
        education.  This appropriation is 
        available until June 30, 2006, at which 
        time the project must be completed and 
        final products delivered, unless an 
        earlier date is specified in the work 
        program. 
        Subd. 10.  Energy                        630,000      110,000   
                      Summary by Fund
        Trust Fund              111,000       110,000
        Oil Overcharge 
                               519,000         -0-    
        (a) Community Energy Development 
        Program 
        $519,000 is from the oil overcharge 
        money to the commissioner of 
        administration for transfer to the 
        commissioner of commerce to assist 
        communities in identifying 
        cost-effective energy projects and 
        developing locally owned wind energy 
        projects through local wind resource 
        assessment and financial assistance.  
        (b) Advancing Utilization of Manure 
        Methane Digester Electrical Generation 
        $111,000 the first year and $110,000 
        the second year are from the trust fund 
        to the commissioner of agriculture to 
        maximize use of manure methane 
        digesters by identifying compatible 
        waste streams and the feasibility of 
        microturbine and fuel cell technologies.
        Subd. 11.  Environmental Education       234,000       236,000  
        (a) Dodge Nature Center - Restoration 
        Plan 
        $41,000 the first year and $42,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with Dodge Nature 
        Center to restore up to 155 acres in 
        Mendota Heights. 
        (b) Bucks and Buckthorn:  Engaging 
        Young Hunters in Restoration 
        $127,000 the first year and $128,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for agreements with Great 
        River Greening, Minnesota Deer Hunters 
        Association, and the St. Croix 
        Watershed Research Station for a pilot 
        program linking hunting and habitat 
        restoration opportunities for youth. 
        (c) Putting Green Environmental 
        Adventure Park:  Sustainability 
        Education 
        $66,000 the first year and $66,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with Putting Green, 
        Inc. to construct educational exhibits 
        for up to nine putting green learning 
        stations in New Ulm. 
        Subd. 12.  Children's Environmental 
        Health                                   281,000      282,000   
        (a) Healthy Schools:  Indoor Air 
        Quality and Asthma Management 
        $84,000 the first year and $84,000 the 
        second year are from the trust fund to 
        the commissioner of health to assist 
        school districts with developing and 
        implementing effective indoor air 
        quality and asthma management plans. 
        (b) Economic-based Analysis of 
        Children's Environmental Health Risks 
        $47,000 the first year and $48,000 the 
        second year are from the trust fund to 
        the commissioner of health to assess 
        economic strategies for children's 
        environmental health risks. 
        (c) Continuous Indoor Air Quality 
        Monitoring in Minnesota Schools 
        $150,000 the first year and $150,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with Schulte 
        Associates, LLC to provide continuous, 
        real-time indoor air quality monitoring 
        in at least six selected schools. 
        Subd. 13.  Data Availability 
        Requirements 
        (a) During the biennium ending June 30, 
        2005, data collected by the projects 
        funded under this section that have 
        value for planning and management of 
        natural resource, emergency 
        preparedness, and infrastructure 
        investments must conform to the 
        enterprise information architecture 
        developed by the office of technology.  
        Spatial data must conform to geographic 
        information system guidelines and 
        standards outlined in that architecture 
        and adopted by the Minnesota geographic 
        data clearinghouse at the land 
        management information center.  A 
        description of these data must be made 
        available on-line through the 
        clearinghouse, and the data themselves 
        must be accessible and free to the 
        public unless made private under the 
        Data Practices Act, Minnesota Statutes, 
        chapter 13.  
        (b) To the extent practicable, summary 
        data and results of projects funded 
        under this section should be readily 
        accessible on the Internet. 
        (c) As part of project expenditures, 
        recipients of land acquisition 
        appropriations must provide the 
        information necessary to update public 
        recreation information maps to the 
        department of natural resources in the 
        specified form. 
        Subd. 14.  Project Requirements 
        It is a condition of acceptance of the 
        appropriations in this section that any 
        agency or entity receiving the 
        appropriation must comply with 
        Minnesota Statutes, chapter 116P, and 
        vegetation planted must be native to 
        Minnesota and preferably of the local 
        ecotype unless the work program 
        approved by the commission expressly 
        allows the planting of species that are 
        not native to Minnesota.  
        Subd. 15.  Match Requirements 
        Unless specifically authorized, 
        appropriations in this section that 
        must be matched and for which the match 
        has not been committed by December 31, 
        2003, are canceled, and in-kind 
        contributions may not be counted as 
        matching funds. 
        Subd. 16.  Payment Conditions and 
        Capital Equipment Expenditures 
        All agreements, grants, or contracts 
        referred to in this section must be 
        administered on a reimbursement basis.  
        Notwithstanding Minnesota Statutes, 
        section 16A.41, expenditures made on or 
        after July 1, 2003, or the date the 
        work program is approved, whichever is 
        later, are eligible for reimbursement 
        unless otherwise provided in this 
        section.  Payment must be made upon 
        receiving documentation that 
        project-eligible reimbursable amounts 
        have been expended, except that 
        reasonable amounts may be advanced to 
        projects in order to accommodate cash 
        flow needs.  The advances must be 
        approved as part of the work program.  
        No expenditures for capital equipment 
        are allowed unless expressly authorized 
        in the project work program. 
        Subd. 17.  Purchase of Recycled and 
        Recyclable Materials 
        A political subdivision, public or 
        private corporation, or other entity 
        that receives an appropriation in this 
        section must use the appropriation in 
        compliance with Minnesota Statutes, 
        sections 16B.121 and 16B.122, requiring 
        the purchase of recycled, repairable, 
        and durable materials; the purchase of 
        uncoated paper stock; and the use of 
        soy-based ink, the same as if it were a 
        state agency.  
        Subd. 18.  Energy Conservation 
        A recipient to whom an appropriation is 
        made in this section for a capital 
        improvement project shall ensure that 
        the project complies with the 
        applicable energy conservation 
        standards contained in law, including 
        Minnesota Statutes, sections 216C.19 
        and 216C.20, and rules adopted 
        thereunder.  The recipient may use the 
        energy planning, advocacy, and state 
        energy office units of the department 
        of commerce to obtain information and 
        technical assistance on energy 
        conservation and alternative energy 
        development relating to the planning 
        and construction of the capital 
        improvement project. 
        Subd. 19.  Accessibility 
        Structural and nonstructural facilities 
        must meet the design standards in the 
        Americans with Disability Act (ADA) 
        accessibility guidelines.  
        Subd. 20.  Carryforward 
        (a) The availability of the 
        appropriations for the following 
        projects is extended to June 30, 2004:  
        Laws 2001, First Special Session 
        chapter 2, section 14, subdivision 4, 
        paragraph (b), state fish hatchery 
        rehabilitation, paragraph (c), 
        enhancing Canada goose hunting and 
        management; subdivision 5, paragraph 
        (g), McQuade small craft harbor, 
        paragraph (i), Gateway trail bridge, 
        paragraph (p), state park and 
        recreation area acquisition, paragraph 
        (q), LAWCON; subdivision 6, paragraph 
        (d), determination of fecal pollution 
        sources in Minnesota; subdivision 7, 
        paragraph (e), Lake Superior Lakewide 
        Management Plan (LaMP); subdivision 8, 
        paragraph (b), agricultural land 
        preservation, paragraph (d), 
        accelerated technology transfer for 
        starch-based plastics; and subdivision 
        9, improving air quality by using 
        biodiesel in generators. 
        (b) The availability of the 
        appropriation from the trust fund for 
        the following project is extended to 
        June 30, 2004:  Laws 2001, First 
        Special Session chapter 2, section 14, 
        subdivision 3, paragraph (a), 
        legislative commission on Minnesota 
        resources.  During the 2004-2005 
        biennium the legislative commission on 
        Minnesota resources is not subject to 
        the limitation in uses of funds 
        provided under Minnesota Statutes, 
        section 16A.281. 
        (c) The availability of the 
        appropriation for the following project 
        is extended to June 30, 2005:  Laws 
        2001, First Special Session chapter 2, 
        section 14, subdivision 5, paragraph 
        (k), Gitchi-Gami state trail; and 
        subdivision 7, paragraph (a), hydraulic 
        impacts of quarries and gravel pits. 
        Subd. 21.  Future Resources Funds 
        Minnesota future resources fund 
        appropriations remaining from 
        appropriations in Laws 1999, chapter 
        231, section 16; and Laws 2001, First 
        Special Session chapter 2, section 14, 
        as amended in subdivision 19 are 
        continued to the date of their 
        availability in law. 
        Any projects with dollars appropriated 
        from the Minnesota future resources 
        fund prior to July 1, 2003, continue to 
        be subject to the requirements of 
        Minnesota Statutes, chapter 116P. 
           Sec. 10.  [FUND TRANSFER.] 
           (a) By June 30, 2003, the commissioner of the pollution 
        control agency shall transfer $11,000,000 from the unreserved 
        balance of the solid waste fund to the commissioner of finance 
        for cancellation to the general fund. 
           (b) The commissioner of the pollution control agency shall 
        transfer $5,000,000 before July 30, 2003, and $5,000,000 before 
        July 30, 2004, from the unreserved balance of the environmental 
        fund to the commissioner of finance for cancellation to the 
        general fund. 
           (c) By June 30, 2005, the commissioner of the pollution 
        control agency shall transfer $1,370,000 from the environmental 
        fund to the commissioner of finance for cancellation to the 
        general fund. 
           (d) By June 30, 2007, the commissioner of the pollution 
        control agency shall transfer $1,370,000 from the environmental 
        fund to the commissioner of finance for cancellation to the 
        general fund. 
           (e) By June 30, 2004, the commissioner of the pollution 
        control agency shall transfer $9,905,000 from the metropolitan 
        landfill contingency action trust fund to the commissioner of 
        finance for cancellation to the general fund.  This is a onetime 
        transfer from the metropolitan landfill contingency action trust 
        fund to the general fund.  It is the intent of the legislature 
        to restore these funds to the metropolitan landfill contingency 
        action trust fund as revenues become available in the future to 
        ensure the state meets future financial obligations under 
        Minnesota Statutes, section 473.845. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment.  
           Sec. 11.  Minnesota Statutes 2002, section 17.4988, is 
        amended to read: 
           17.4988 [LICENSE AND INSPECTION FEES.] 
           Subdivision 1.  [REQUIREMENTS FOR ISSUANCE.] A permit or 
        license must be issued by the commissioner if the requirements 
        of law are met and the license and permit fees specified in this 
        section are paid. 
           Subd. 2.  [AQUATIC FARMING LICENSE.] (a) The annual fee for 
        an aquatic farming license is $70 $210. 
           (b) The aquatic farming license may contain endorsements 
        for the rights and privileges of the following licenses under 
        the game and fish laws.  The endorsement must be made upon 
        payment of the license fee prescribed in section 97A.475 for the 
        following licenses: 
           (1) minnow dealer license; 
           (2) minnow retailer license for sale of minnows as bait; 
           (3) minnow exporting license; 
           (4) aquatic farm vehicle endorsement, which includes a 
        minnow dealer vehicle license, a minnow retailer vehicle 
        license, an exporting minnow vehicle license, and a fish vendor 
        license; 
           (5) sucker egg taking license; and 
           (6) game fish packers license. 
           Subd. 3.  [INSPECTION FEES.] The fees for the following 
        inspections are:  
           (1) initial inspection of each water to be licensed, $50; 
           (2) fish health inspection and certification, $20 $60 plus 
        $100 $150 per lot thereafter; and 
           (3) initial inspection for containment and quarantine 
        facility inspections, $50 $100. 
           Subd. 4.  [AQUARIUM FACILITY.] (a) A person operating a 
        commercial aquarium facility must have a commercial aquarium 
        facility license issued by the commissioner if the facility 
        contains species of aquatic life that are for sale and that are 
        present in waters of the state.  The commissioner may require an 
        aquarium facility license for aquarium facilities importing or 
        holding species of aquatic life that are for sale and that are 
        not present in Minnesota if those species can survive in waters 
        of the state.  The fee for an aquarium facility license 
        is $19 $90. 
           (b) Game fish transferred by an aquarium facility must be 
        accompanied by a receipt containing the information required on 
        a shipping document by section 17.4985, subdivision 3, paragraph 
        (b). 
           [EFFECTIVE DATE.] This section is effective March 1, 2004. 
           Sec. 12.  Minnesota Statutes 2002, section 84.027, 
        subdivision 13, is amended to read: 
           Subd. 13.  [GAME AND FISH RULES.] (a) The commissioner of 
        natural resources may adopt rules under sections 97A.0451 to 
        97A.0459 and this subdivision that are authorized under: 
           (1) chapters 97A, 97B, and 97C to set open seasons and 
        areas, to close seasons and areas, to select hunters for areas, 
        to provide for tagging and registration of game, to prohibit or 
        allow taking of wild animals to protect a species, to prevent or 
        control wildlife disease, and to prohibit or allow importation, 
        transportation, or possession of a wild animal; 
           (2) sections 84.093, 84.15, and 84.152 to set seasons for 
        harvesting wild ginseng roots and wild rice and to restrict or 
        prohibit harvesting in designated areas; and 
           (3) section 84D.12 to designate prohibited exotic species, 
        regulated exotic species, unregulated exotic species, and 
        infested waters. 
           (b) If conditions exist that do not allow the commissioner 
        to comply with sections 97A.0451 to 97A.0459, the commissioner 
        may adopt a rule under this subdivision by submitting the rule 
        to the attorney general for review under section 97A.0455, 
        publishing a notice in the State Register and filing the rule 
        with the secretary of state and the legislative coordinating 
        commission, and complying with section 97A.0459, and including a 
        statement of the emergency conditions and a copy of the rule in 
        the notice.  The notice may be published after it is received 
        from the attorney general or five business days after it is 
        submitted to the attorney general, whichever is earlier. 
           (c) Rules adopted under paragraph (b) are effective upon 
        publishing in the State Register and may be effective up to 
        seven days before publishing and filing under paragraph (b), if: 
           (1) the commissioner of natural resources determines that 
        an emergency exists; 
           (2) the attorney general approves the rule; and 
           (3) for a rule that affects more than three counties the 
        commissioner publishes the rule once in a legal newspaper 
        published in Minneapolis, St. Paul, and Duluth, or for a rule 
        that affects three or fewer counties the commissioner publishes 
        the rule once in a legal newspaper in each of the affected 
        counties. 
           (d) Except as provided in paragraph (e), a rule published 
        under paragraph (c), clause (3), may not be effective earlier 
        than seven days after publication. 
           (e) A rule published under paragraph (c), clause (3), may 
        be effective the day the rule is published if the commissioner 
        gives notice and holds a public hearing on the rule within 15 
        days before publication. 
           (f) The commissioner shall attempt to notify persons or 
        groups of persons affected by rules adopted under paragraphs (b) 
        and (c) by public announcements, posting, and other appropriate 
        means as determined by the commissioner. 
           (g) Notwithstanding section 97A.0458, a rule adopted under 
        this subdivision is effective for the period stated in the 
        notice but not longer than 18 months after the rule is adopted. 
           Sec. 13.  Minnesota Statutes 2002, section 84.029, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT, DEVELOPMENT, MAINTENANCE 
        AND OPERATION.] In addition to other lawful authority, the 
        commissioner of natural resources may establish, develop, 
        maintain, and operate recreational areas, including but not 
        limited to trails and canoe routes, for the use and enjoyment of 
        the public on any state-owned or leased land under the 
        commissioner's jurisdiction.  Each employee of the department of 
        natural resources, while engaged in employment in connection 
        with such recreational areas, has and possesses the authority 
        and power of a peace officer when so designated by the 
        commissioner The commissioner may employ and designate 
        individuals according to section 85.04 to enforce laws governing 
        the use of recreational areas. 
           Sec. 14.  Minnesota Statutes 2002, section 84.085, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY.] (a) The commissioner of 
        natural resources may accept for and on behalf of the state any 
        gift, bequest, devise, or grants of lands or interest in lands 
        or personal property of any kind or of money tendered to the 
        state for any purpose pertaining to the activities of the 
        department or any of its divisions.  Any money so received is 
        hereby appropriated and dedicated for the purpose for which it 
        is granted.  Lands and interests in lands so received may be 
        sold or exchanged as provided in chapter 94.  
           (b) The commissioner of natural resources, on behalf of the 
        state, may accept and use grants of money or property from the 
        United States or other grantors for conservation purposes not 
        inconsistent with the laws of this state.  Any money or property 
        so received is hereby appropriated and dedicated for the 
        purposes for which it is granted, and shall be expended or used 
        solely for such purposes in accordance with the federal laws and 
        regulations pertaining thereto, subject to applicable state laws 
        and rules as to manner of expenditure or use providing that the 
        commissioner may make subgrants of any money received to other 
        agencies, units of local government, private individuals, 
        private organizations, and private nonprofit corporations.  
        Appropriate funds and accounts shall be maintained by the 
        commissioner of finance to secure compliance with this section. 
           (c) The commissioner may accept for and on behalf of the 
        permanent school fund a donation of lands, interest in lands, or 
        improvements on lands.  A donation so received shall become 
        state property, be classified as school trust land as defined in 
        section 92.025, and be managed consistent with section 127A.31. 
           Sec. 15.  Minnesota Statutes 2002, section 84.091, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LICENSE REQUIRED; EXCEPTION.] (a) Except as 
        provided in paragraph (b), a person may not harvest, buy, sell, 
        transport, or possess aquatic plants without a license required 
        under this chapter.  A license shall be issued in the same 
        manner as provided under the game and fish laws. 
           (b) A resident under the age of 16 18 years may harvest 
        wild rice without a license, if accompanied by a person with a 
        wild rice license. 
           [EFFECTIVE DATE.] This section is effective March 1, 2004. 
           Sec. 16.  Minnesota Statutes 2002, section 84.091, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LICENSE FEES.] (a) The fees for the following 
        licenses, to be issued to residents only, are: 
           (1) for harvesting wild rice, $12.50: 
           (i) for a season, $25; and 
           (ii) for one day, $15; 
           (2) for buying and selling wild ginseng, $5; 
           (3) for a wild rice dealer's license to buy and sell 50,000 
        pounds or less, $70; and 
           (4) for a wild rice dealer's license to buy and sell more 
        than 50,000 pounds, $250.  
           (b) The fee for a nonresident one-day license to harvest 
        wild rice is $30. 
           (c) The weight of the wild rice shall be determined in its 
        raw state.  
           [EFFECTIVE DATE.] This section is effective March 1, 2004. 
           Sec. 17.  Minnesota Statutes 2002, section 84.0911, is 
        amended to read: 
           84.0911 [WILD RICE MANAGEMENT ACCOUNT.] 
           Subdivision 1.  [ESTABLISHMENT ACCOUNT ESTABLISHED.] The 
        wild rice management account is established as an account in the 
        state treasury game and fish fund. 
           Subd. 2.  [RECEIPTS.] Money received from the sale of wild 
        rice licenses issued by the commissioner under section 84.091, 
        subdivision 3, paragraph (a), clauses (1) and, (3), and (4), and 
        subdivision 3, paragraph (b), shall be credited to the wild rice 
        management account.  
           Subd. 3.  [USE OF MONEY IN ACCOUNT.] (a) Money in the wild 
        rice management account shall be used by is annually 
        appropriated to the commissioner and shall be used for 
        management of designated public waters to improve natural wild 
        rice production. 
           (b) Money that is not appropriated from the wild rice 
        management account does not cancel but shall remain in the wild 
        rice management account until appropriated. 
           [EFFECTIVE DATE.] This section is effective March 1, 2004. 
           Sec. 18.  [84.771] [OFF-HIGHWAY VEHICLE DEFINITION.] 
           For the purposes of sections 84.771 to 84.930, "off-highway 
        vehicle" means an off-highway motorcycle, as defined under 
        section 84.787, subdivision 7; an off-road vehicle, as defined 
        under section 84.797, subdivision 7; or an all-terrain vehicle, 
        as defined under section 84.92, subdivision 8. 
           Sec. 19.  [84.773] [RESTRICTIONS ON OPERATION.] 
           A person may not intentionally operate an off-highway 
        vehicle: 
           (1) on a trail on public land that is designated for 
        nonmotorized use only; 
           (2) on restricted areas within public lands that are posted 
        or where gates or other clearly visible structures are placed to 
        prevent unauthorized motorized vehicle access; or 
           (3) except as specifically authorized by law or rule 
        adopted by the commissioner, in:  type 3, 4, 5, and 8 wetlands 
        or unfrozen public waters, as defined in section 103G.005; in a 
        state park; in a scientific and natural area; or in a wildlife 
        management area. 
           Sec. 20.  [84.775] [OFF-HIGHWAY VEHICLE CIVIL CITATIONS.] 
           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; 84.777; 84.788 to 84.795; or 84.90; 
           (2) an off-road vehicle in violation of sections 84.773; 
        84.777; 84.798 to 84.804; or 84.90; or 
           (3) an all-terrain vehicle in violation of sections 84.773; 
        84.777; 84.90; or 84.922 to 84.928.  
           (b) A civil citation shall require restitution for public 
        and private property damage and impose a penalty of no more than 
        $100 for the first offense, no more than $200 for the second 
        offense, and no more than $500 for third and subsequent 
        offenses.  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. 
           Subd. 2.  [APPEALS.] Civil citations issued under 
        subdivision 1 may be appealed according to section 116.072, if 
        the recipient of the citation requests a hearing by notifying 
        the commissioner in writing within 30 days after receipt of the 
        citation or, if applicable, within 15 days after the date of 
        mailing the explanation of restitution.  For the purposes of 
        this section, the terms "commissioner" and "agency" as used in 
        section 116.072 mean the commissioner of natural resources.  If 
        a hearing is not requested within the 30-day period, the 
        citation becomes a final order not subject to further review.  
           Subd. 3.  [ENFORCEMENT.] Civil citations issued under 
        subdivision 1 may be enforced under section 116.072, subdivision 
        9.  Penalty amounts must be remitted within 30 days of issuance 
        of the citation. 
           Subd. 4.  [ALLOCATION OF PENALTY AMOUNTS.] Penalty amounts 
        collected from civil citations issued under this section must be 
        paid to the treasury of the unit of government employing the 
        officer that issued the civil citation.  Penalties retained by 
        the commissioner shall be credited as follows:  to the 
        off-highway motorcycle account under section 84.794 for 
        citations involving off-highway motorcycles; to the off-road 
        vehicle account under section 84.803 for citations involving 
        off-road vehicles; or to the all-terrain vehicle account under 
        section 84.927 for citations involving all-terrain vehicles.  
        Penalty amounts credited under this subdivision are dedicated 
        for the enforcement of off-highway vehicle laws.  
           Subd. 5.  [SELECTION OF REMEDY.] A peace officer may not 
        seek both civil and misdemeanor penalties for offenses listed in 
        subdivision 1. 
           Sec. 21.  [84.777] [OFF-HIGHWAY VEHICLE USE OF STATE LANDS 
        RESTRICTED.] 
           (a) Except as otherwise allowed by law or rules adopted by 
        the commissioner, effective June 1, 2003, notwithstanding 
        sections 84.787 to 84.805 and 84.92 to 84.929, the use of 
        off-highway vehicles is prohibited on state land administered by 
        the commissioner of natural resources, and on 
        county-administered forest land within the boundaries of a state 
        forest, except on roads and trails specifically designated and 
        posted by the commissioner for use by off-highway vehicles. 
           (b) Paragraph (a) does not apply to county-administered 
        land within a state forest if the county board adopts a 
        resolution that modifies restrictions on the use of off-highway 
        vehicles on county-administered land within the forest. 
           Sec. 22.  [84.780] [OFF-HIGHWAY VEHICLE DAMAGE ACCOUNT.] 
           (a) The off-highway vehicle damage account is created in 
        the natural resources fund.  Money in the off-highway vehicle 
        damage account is appropriated to the commissioner of natural 
        resources for the repair or restoration of property damaged by 
        the operation of off-highway vehicles in an unpermitted area 
        after August 1, 2003, and for the costs of administration for 
        this section.  Before the commissioner may make a payment from 
        this account, the commissioner must determine whether the damage 
        to the property was caused by the unpermitted use of off-highway 
        vehicles, that the applicant has made reasonable efforts to 
        identify the responsible individual and obtain payment from the 
        individual, and that the applicant has made reasonable efforts 
        to prevent reoccurrence.  By June 30, 2005, the commissioner of 
        finance must transfer the remaining balance in the account to 
        the off-highway motorcycle account under section 84.794, the 
        off-road vehicle account under section 84.803, and the 
        all-terrain vehicle account under section 84.927.  The amount 
        transferred to each account must be proportionate to the amounts 
        received in the damage account from the relevant off-highway 
        vehicle accounts. 
           (b) This section expires July 1, 2005. 
           Sec. 23.  Minnesota Statutes 2002, section 84.788, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXEMPTIONS.] Registration is not required for 
        off-highway motorcycles:  
           (1) owned and used by the United States, the state, another 
        state, or a political subdivision; 
           (2) registered in another state or country that have not 
        been within this state for more than 30 consecutive days; or 
           (3) used exclusively in organized track racing events; 
           (4) being used on private land with the permission of the 
        landowner; or 
           (5) registered under chapter 168, when operated on forest 
        roads to gain access to a state forest campground. 
           Sec. 24.  Minnesota Statutes 2002, section 84.788, 
        subdivision 3, is amended to read: 
           Subd. 3.  [APPLICATION; ISSUANCE; REPORTS.] (a) Application 
        for registration or continued registration must be made to the 
        commissioner or an authorized deputy registrar of motor vehicles 
        in a form prescribed by the commissioner.  The form must state 
        the name and address of every owner of the off-highway 
        motorcycle. 
           (b) A person who purchases from a retail dealer an 
        off-highway motorcycle that is intended to be operated on public 
        lands or waters shall make application for registration to the 
        dealer at the point of sale.  The dealer shall issue a temporary 
        ten-day registration permit to each purchaser who applies to the 
        dealer for registration.  The dealer shall submit the completed 
        registration applications and fees to the deputy registrar at 
        least once each week.  No fee may be charged by a dealer to a 
        purchaser for providing the temporary permit. 
           (c) Upon receipt of the application and the appropriate 
        fee, the commissioner or deputy registrar shall issue to the 
        applicant, or provide to the dealer, a 60-day temporary receipt 
        and shall assign a registration number that must be affixed to 
        the motorcycle in a manner prescribed by the commissioner.  A 
        dealer subject to paragraph (b) shall provide the registration 
        materials and temporary receipt to the purchaser within the 
        ten-day temporary permit period. 
           (d) The commissioner shall develop a registration system to 
        register vehicles under this section.  A deputy registrar of 
        motor vehicles acting under section 168.33, is also a deputy 
        registrar of off-highway motorcycles.  The commissioner of 
        natural resources in agreement with the commissioner of public 
        safety may prescribe the accounting and procedural requirements 
        necessary to ensure efficient handling of registrations and 
        registration fees.  Deputy registrars shall strictly comply with 
        the accounting and procedural requirements.  
           (e) A fee of $2 In addition to other fees prescribed by 
        law, a filing fee of $4.50 is charged for each off-highway 
        motorcycle registration renewal, duplicate or replacement 
        registration card, and replacement decal and a filing fee of $7 
        is charged for each off-highway motorcycle registered 
        registration and registration transfer issued by: 
           (1) a deputy registrar and must be deposited in the 
        treasury of the jurisdiction where the deputy is appointed, or 
        kept if the deputy is not a public official; or 
           (2) the commissioner and must be deposited in the state 
        treasury and credited to the off-highway motorcycle account. 
           Sec. 25.  Minnesota Statutes 2002, section 84.798, 
        subdivision 3, is amended to read: 
           Subd. 3.  [APPLICATION; ISSUANCE.] (a) Application for 
        registration or continued registration must be made to the 
        commissioner, or an authorized deputy registrar of motor 
        vehicles in a form prescribed by the commissioner.  The form 
        must state the name and address of every owner of the off-road 
        vehicle.  Upon receipt of the application and the appropriate 
        fee, the commissioner shall register the off-road vehicle and 
        assign a registration number that must be affixed to the vehicle 
        in accordance with subdivision 4.  
           (b) A deputy registrar of motor vehicles acting under 
        section 168.33 is also a deputy registrar of off-road vehicles.  
        The commissioner of natural resources in cooperation with the 
        commissioner of public safety may prescribe the accounting and 
        procedural requirements necessary to ensure efficient handling 
        of registrations and registration fees.  Deputy registrars shall 
        strictly comply with the accounting and procedural 
        requirements.  A fee of $2 In addition to other fees prescribed 
        by law must be, a filing fee of $4.50 is charged for each 
        off-road vehicle registration renewal, duplicate or replacement 
        registration card, and replacement decal and a filing fee of $7 
        is charged for each off-road vehicle registered registration and 
        registration transfer issued by: 
           (1) a deputy registrar and must be deposited in the 
        treasury of the jurisdiction where the deputy is appointed, or 
        retained if the deputy is not a public official; or 
           (2) the commissioner and must be deposited in the state 
        treasury and credited to the off-road vehicle account. 
           Sec. 26.  Minnesota Statutes 2002, section 84.803, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PURPOSES.] Subject to appropriation by the 
        legislature, money in the off-road vehicle account may only be 
        spent for: 
           (1) administration, enforcement, and implementation of 
        sections 84.797 84.773 to 84.805 and Laws 1993, chapter 311, 
        article 2, section 18; 
           (2) acquisition, maintenance, and development of off-road 
        vehicle trails and use areas; 
           (3) grant-in-aid programs to counties and municipalities to 
        construct and maintain off-road vehicle trails and use areas; 
        and 
           (4) grants-in-aid to local safety programs; and 
           (5) enforcement and public education grants to local law 
        enforcement agencies. 
           Sec. 27.  [84.901] [OFF-HIGHWAY VEHICLE SAFETY AND 
        CONSERVATION PROGRAM.] 
           Subdivision 1.  [CREATION.] The commissioner of natural 
        resources shall establish a program to promote the safe and 
        responsible operation of off-highway vehicles in a manner that 
        does not harm the environment.  The commissioner shall 
        coordinate the program through the regional offices of the 
        department of natural resources. 
           Subd. 2.  [PURPOSE.] The purpose of the program is to 
        encourage off-highway vehicle clubs to assist, on a volunteer 
        basis, in improving, maintaining, and monitoring of trails on 
        state forest land and other public lands. 
           Subd. 3.  [AGREEMENTS.] (a) The commissioner shall enter 
        into informal agreements with off-highway vehicle clubs for 
        volunteer services to maintain, make improvements to, and 
        monitor trails on state forest land and other public lands.  The 
        off-highway vehicle clubs shall promote the operation of 
        off-highway vehicles in a safe and responsible manner that 
        complies with the laws and rules that relate to the operation of 
        off-highway vehicles. 
           (b) The off-highway vehicle clubs may provide assistance to 
        the department in locating, recruiting, and training instructors 
        for off-highway vehicle training programs. 
           (c) The commissioner may provide assistance to enhance the 
        comfort and safety of volunteers and to facilitate the 
        implementation and administration of the safety and conservation 
        program. 
           Subd. 4.  [WORKER DISPLACEMENT PROHIBITED.] The 
        commissioner may not enter into any agreement that has the 
        purpose of or results in the displacement of public employees by 
        volunteers participating in the off-highway safety and 
        conservation program under this section.  The commissioner must 
        certify to the appropriate bargaining agent that the work 
        performed by a volunteer will not result in the displacement of 
        currently employed workers or workers on seasonal layoff or 
        layoff from a substantially equivalent position, including 
        partial displacement such as reduction in hours of nonovertime 
        work, wages, or other employment benefits. 
           Sec. 28.  Minnesota Statutes 2002, section 84.92, 
        subdivision 8, is amended to read: 
           Subd. 8.  [ALL-TERRAIN VEHICLE.] "All-terrain vehicle" or 
        "vehicle" means a motorized flotation-tired vehicle of not less 
        than three low pressure tires, but not more than six tires, that 
        is limited in engine displacement of less than 800 cubic 
        centimeters and total dry weight less than 800 900 pounds. 
           Sec. 29.  Minnesota Statutes 2002, section 84.922, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPLICATION, ISSUANCE, REPORTS.] (a) Application 
        for registration or continued registration shall be made to the 
        commissioner of natural resources, the commissioner of public 
        safety or an authorized deputy registrar of motor vehicles in a 
        form prescribed by the commissioner.  The form must state the 
        name and address of every owner of the vehicle.  
           (b) A person who purchases an all-terrain vehicle from a 
        retail dealer shall make application for registration to the 
        dealer at the point of sale.  The dealer shall issue a temporary 
        ten-day registration permit to each purchaser who applies to the 
        dealer for registration.  The dealer shall submit the completed 
        registration application and fees to the deputy registrar at 
        least once each week.  No fee may be charged by a dealer to a 
        purchaser for providing the temporary permit. 
           (c) Upon receipt of the application and the appropriate 
        fee, the commissioner or deputy registrar shall issue to the 
        applicant, or provide to the dealer, a 60-day temporary receipt 
        and shall assign a registration number that must be affixed to 
        the vehicle in a manner prescribed by the commissioner.  A 
        dealer subject to paragraph (b) shall provide the registration 
        materials and temporary receipt to the purchaser within the 
        ten-day temporary permit period.  The commissioner shall use the 
        snowmobile registration system to register vehicles under this 
        section.  
           (d) Each deputy registrar of motor vehicles acting under 
        section 168.33, is also a deputy registrar of all-terrain 
        vehicles.  The commissioner of natural resources in agreement 
        with the commissioner of public safety may prescribe the 
        accounting and procedural requirements necessary to assure 
        efficient handling of registrations and registration fees. 
        Deputy registrars shall strictly comply with the accounting and 
        procedural requirements.  
           (e) A fee of $2 In addition to other fees prescribed by law 
        shall be, a filing fee of $4.50 is charged for each all-terrain 
        vehicle registration renewal, duplicate or replacement 
        registration card, and replacement decal and a filing fee of $7 
        is charged for each all-terrain vehicle registered registration 
        and registration transfer issued by: 
           (1) a deputy registrar and shall be deposited in the 
        treasury of the jurisdiction where the deputy is appointed, or 
        retained if the deputy is not a public official; or 
           (2) the commissioner and shall be deposited to the state 
        treasury and credited to the all-terrain vehicle account in the 
        natural resources fund. 
           Sec. 30.  Minnesota Statutes 2002, section 84.922, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FEES FOR REGISTRATION.] (a) The fee for a 
        three-year registration of an all-terrain vehicle under this 
        section, other than those registered by a dealer or manufacturer 
        under paragraph (b) or (c), is:  
           (1) for public use before January 1, 2005, $18 $23; 
           (2) for public use on January 1, 2005, and after, $30; 
           (3) for private use, $6; and 
           (3) (4) for a duplicate or transfer, $4. 
           (b) The total registration fee for all-terrain vehicles 
        owned by a dealer and operated for demonstration or testing 
        purposes is $50 per year.  Dealer registrations are not 
        transferable. 
           (c) The total registration fee for all-terrain vehicles 
        owned by a manufacturer and operated for research, testing, 
        experimentation, or demonstration purposes is $150 per year.  
        Manufacturer registrations are not transferable.  
           (d) The fees collected under this subdivision must be 
        credited to the all-terrain vehicle account. 
           Sec. 31.  Minnesota Statutes 2002, section 84.926, is 
        amended to read: 
           84.926 [VEHICLE USE ALLOWED ON PUBLIC LANDS BY THE 
        COMMISSIONER.] 
           Notwithstanding section 84.777, on a case by case 
        basis, after notice and public hearing, the commissioner 
        may allow vehicles issue a permit authorizing a person to 
        operate an off-highway vehicle on individual public trails under 
        the commissioner's jurisdiction during specified times and for 
        specified purposes.  
           Sec. 32.  Minnesota Statutes 2002, section 84.927, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PURPOSES.] Subject to appropriation by the 
        legislature, money in the all-terrain vehicle account may only 
        be spent for:  
           (1) the education and training program under section 
        84.925; 
           (2) administration, enforcement, and implementation of 
        sections 84.92 84.773 to 84.929 and Laws 1984, chapter 647, 
        sections 9 and 10; 
           (3) acquisition, maintenance, and development of vehicle 
        trails and use areas; 
           (4) grant-in-aid programs to counties and municipalities to 
        construct and maintain all-terrain vehicle trails and use areas; 
        and 
           (5) grants-in-aid to local safety programs; and 
           (6) enforcement and public education grants to local law 
        enforcement agencies. 
           The distribution of funds made available through 
        grant-in-aid programs must be guided by the statewide 
        comprehensive outdoor recreation plan. 
           Sec. 33.  Minnesota Statutes 2002, section 84.928, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [OPERATION ON ROADS AND RIGHTS-OF-WAY.] (a) 
        Unless otherwise allowed in sections 84.92 to 84.929, a person 
        shall not operate an all-terrain vehicle in this state along or 
        on the roadway, shoulder, or inside bank or slope of a public 
        road right-of-way of a trunk, county state-aid, or county 
        highway other than in the ditch or the outside bank or slope of 
        a trunk, county state-aid, or county highway in this state 
        unless otherwise allowed in sections 84.92 to 84.929 unless 
        prohibited under paragraph (b). 
           (b) A road authority as defined under section 160.02, 
        subdivision 25, may after a public hearing restrict the use of 
        all-terrain vehicles in the ditch or outside bank or slope of a 
        public road right-of-way under its jurisdiction. 
           (c) The commissioner may limit the use of a right-of-way 
        for a period of time if the commissioner determines that use of 
        the right-of-way causes: 
           (1) degradation of vegetation on adjacent public property; 
           (2) siltation of waters of the state; 
           (3) impairment or enhancement to the act of taking game; or 
           (4) a threat to safety of the right-of-way users or to 
        individuals on adjacent public property. 
           (d) The commissioner must notify the road authority as soon 
        as it is known that a closure will be ordered.  The notice must 
        state the reasons and duration of the closure. 
           (b) (e) A person may operate an all-terrain vehicle 
        registered for private use and used for agricultural purposes on 
        a public road right-of-way of a trunk, county state-aid, or 
        county highway in this state if the all-terrain vehicle is 
        operated on the extreme right-hand side of the road, and left 
        turns may be made from any part of the road if it is safe to do 
        so under the prevailing conditions.  
           (c) (f) A person shall not operate an all-terrain vehicle 
        within the public road right-of-way of a trunk, county 
        state-aid, or county highway from April 1 to August 1 in the 
        agricultural zone unless the vehicle is being used exclusively 
        as transportation to and from work on agricultural lands.  This 
        paragraph does not apply to an agent or employee of a road 
        authority, as defined in section 160.02, subdivision 25, or the 
        department of natural resources when performing or exercising 
        official duties or powers. 
           (d) (g) A person shall not operate an all-terrain vehicle 
        within the public road right-of-way of a trunk, county 
        state-aid, or county highway between the hours of one-half hour 
        after sunset to one-half hour before sunrise, except on the 
        right-hand side of the right-of-way and in the same direction as 
        the highway traffic on the nearest lane of the adjacent roadway. 
           (e) (h) A person shall not operate an all-terrain vehicle 
        at any time within the right-of-way of an interstate highway or 
        freeway within this state. 
           Sec. 34.  [84.930] [MOTORIZED TRAIL GRANTS-IN-AID.] 
           (a) This section applies to grants-in-aid for motorized 
        trail construction and maintenance under sections 84.794, 
        84.803, 84.83, and 84.927. 
           (b) If the commissioner of natural resources determines 
        that a grant-in-aid recipient has violated any federal or state 
        law or any of the terms of the grant agreement with the 
        commissioner, the commissioner may withhold all grant payments 
        for any work occurring after the date the recipient was notified 
        of the violation and seek restitution for any property damage 
        caused by the violation. 
           (c) A grant-in-aid recipient may appeal the commissioner's 
        decision under paragraph (b) in a contested case hearing under 
        section 14.58. 
           Sec. 35.  [84.991] [MINNESOTA CONSERVATION CORPS.] 
           Subdivision 1.  [TRANSFER.] (a) The Minnesota conservation 
        corps is moved to the friends of the Minnesota conservation 
        corps, an existing nonprofit corporation under section 501(c)(3) 
        of the Internal Revenue Code of 1986, as amended, doing business 
        as the Minnesota conservation corps under the supervision of a 
        board of directors. 
           (b) The expenditure of state funds by the Minnesota 
        conservation corps is subject to audit by the legislative 
        auditor and regular annual report to the legislature in general 
        and specifically to the house of representatives and senate 
        committees with jurisdiction over environment and natural 
        resources policy and finance. 
           Subd. 2.  [STAFF; CORPS MEMBERS.] (a) Staff employed by the 
        Minnesota conservation corps are not state employees, but, at 
        the option of the board of directors of the nonprofit 
        corporation and at the expense of the corporation or its staff, 
        employees who are in the employ of the Minnesota conservation 
        corps on or before June 30, 2003, may continue to participate in 
        state retirement and deferred compensation, that apply to state 
        employees. 
           (b) Employment as a Minnesota conservation corps member is 
        noncovered employment for purposes of eligibility for 
        unemployment benefits under chapter 268. 
           (c) The Minnesota conservation corps is authorized to 
        continue to have staff and corps members participate in the 
        state of Minnesota workers' compensation program through the 
        department of natural resources.  Staff and corps members' claim 
        and administrative costs must be allocated and set annually by 
        the department of natural resources in a manner that is 
        consistent with how these costs are allocated across that 
        agency's operations.  The friends of the Minnesota conservation 
        corps shall establish and follow loss-control strategies that 
        are consistent with loss-control activities of the department of 
        natural resources.  In the event that the friends of the 
        Minnesota conservation corps becomes insolvent or cannot 
        otherwise fund its claim and administrative costs, liability for 
        these costs shall be assumed by the department of natural 
        resources. 
           (d) The Minnesota conservation corps is a training and 
        service program and exempt from Minnesota prevailing wage 
        guidelines. 
           Subd. 3.  [STATE AND OTHER AGENCY COLLABORATION.] The 
        departments of natural resources, agriculture, public safety, 
        transportation, and other appropriate state agencies must 
        constructively collaborate with the Minnesota conservation corps.
           Subd. 4.  [EQUIPMENT AND SERVICE PURCHASES; STATE 
        CONTRACTS.] The Minnesota conservation corps may purchase or 
        lease equipment and services, including fleet, through state 
        contracts administered by the commissioner of administration or 
        the department of natural resources. 
           Subd. 5.  [LIMITATIONS ON MINNESOTA CONSERVATION CORPS 
        PROJECTS.] Each employing state or local agency must certify 
        that the assignment of Minnesota conservation corps members will 
        not result in the displacement of currently employed workers or 
        workers on seasonal layoff, including partial displacement such 
        as reduction in hours of nonovertime work, wages, or other 
        employment benefits.  Supervising agencies that participate in 
        the program may not terminate, lay off, reduce the seasonal 
        hours, or reduce the working hours of any employee for the 
        purpose of using a corps member with available funds.  The 
        positions and job duties of corps members employed in projects 
        shall be submitted to affected exclusive representatives prior 
        to actual assignment. 
           Subd. 6.  [JOINT POWERS.] Section 471.59 relating to joint 
        exercise of powers applies to the Minnesota conservation corps. 
           Sec. 36.  Minnesota Statutes 2002, section 84A.02, is 
        amended to read: 
           84A.02 [DEPARTMENT TO MANAGE PRESERVE.] 
           (a) The department of natural resources shall manage and 
        control the Red Lake game preserve.  The department may adopt 
        and enforce rules for the care, preservation, protection, 
        breeding, propagation, and disposition of all species of 
        wildlife in the preserve.  The department may adopt and enforce 
        rules for the regulation, issuance, sale, and revocation of 
        special licenses or special permits for hunting, fishing, 
        camping, and other uses of this area, consistent with sections 
        84A.01 to 84A.11.  The department may by rule set the terms, 
        conditions, and charges for these licenses and permits. 
           (b) The rules may specify and control the terms under which 
        wildlife may be taken, captured, or killed in the preserve, and 
        under which fur-bearing animals, or animals and fish otherwise 
        having commercial value, may be taken, captured, trapped, 
        killed, sold, and removed from it.  These rules may also provide 
        for (1) the afforestation and reforestation of state lands in 
        the preserve, (2) the sale of merchantable timber from these 
        lands when, in the opinion of the department, it can be sold and 
        removed without damage or injury to the further use and 
        development of the land for wildlife and game in the preserve, 
        and (3) the purposes for which the preserve is established by 
        sections 84A.01 to 84A.11. 
           (c) The department may provide for the policing of the 
        preserve as necessary for its proper development and use for the 
        purposes specified.  Supervisors, guards, custodians, and 
        caretakers assigned to duty in the preserve have the powers of 
        peace officers while in their employment The commissioner of 
        natural resources may employ and designate individuals according 
        to section 85.04 to enforce laws governing the use of the 
        preserve. 
           (d) The department shall also adopt and enforce rules 
        concerning the burning of grass, timber slashings, and other 
        flammable matter, and the clearing, development, and use of 
        lands in the preserve as necessary to prevent forest fires and 
        grass fires that would injure the use and development of this 
        area for wildlife preservation and propagation and to protect 
        its forest and wooded areas. 
           (e) Lands within the preserve are subject to the rules, 
        whether owned by the state or privately, consistent with the 
        rights of the private owners and with applicable state law.  The 
        rules may establish areas and zones within the preserve where 
        hunting, fishing, trapping, or camping is prohibited or 
        specially regulated, to protect and propagate particular 
        wildlife in the preserve.  
           (f) Rules adopted under sections 84A.01 to 84A.11 must be 
        posted on the boundaries of the preserve.  
           Sec. 37.  Minnesota Statutes 2002, section 84A.21, is 
        amended to read: 
           84A.21 [DEPARTMENT TO MANAGE PROJECTS.] 
           (a) The department shall manage and control each project 
        approved and accepted under section 84A.20.  The department may 
        adopt and enforce rules for the purposes in section 84A.20, 
        subdivision 1, for the prevention of forest fires in the 
        projects, and for the sale of merchantable timber from lands so 
        acquired by the state when, in the opinion of the department, 
        the timber may be sold and removed without damage to the project.
           (b) These rules may relate to the care, preservation, 
        protection, breeding, propagation, and disposition of any 
        species of wildlife in the project and the regulation, issuance, 
        sale, and revocation of special licenses or special permits for 
        hunting, fishing, camping, and other uses of the areas 
        consistent with applicable state law. 
           (c) The department may provide for the policing of each 
        project as needed for the proper development, use, and 
        protection of the project and its purposes.  Supervisors, 
        guards, custodians, and caretakers assigned to duty in any 
        project have the powers of peace officers while employed by the 
        department The commissioner of natural resources may employ and 
        designate individuals according to section 85.04 to enforce laws 
        governing the use of the projects. 
           (d) Lands within a project are subject to these rules, 
        whether owned by the state or privately, consistent with the 
        rights of the private owners or with applicable state law.  The 
        rules must be published once in one qualified newspaper in each 
        county affected and take effect after publication.  They must 
        also be posted on the boundaries of each project affected.  
           Sec. 38.  Minnesota Statutes 2002, section 84A.32, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RULES.] (a) The department shall manage 
        and control each project approved and accepted under section 
        84A.31.  The department may adopt and enforce rules for the 
        purposes in section 84A.31, subdivision 1, for the prevention of 
        forest fires in the projects, and for the sale of merchantable 
        timber from lands acquired by the state in the projects when, in 
        the opinion of the department, the timber may be sold and 
        removed without damage to the purposes of the projects.  Rules 
        must not interfere with, destroy, or damage any privately owned 
        property without just compensation being made to the owner of 
        the private property by purchase or in lawful condemnation 
        proceedings.  The rules may relate to the care, preservation, 
        protection, breeding, propagation, and disposition of any 
        species of wildlife in the projects and the regulation, 
        issuance, sale, and revocation of special licenses or special 
        permits for hunting, fishing, camping, or other uses of these 
        areas consistent with applicable state law. 
           (b) The department may provide for the policing of each 
        project as necessary for the proper development, use, and 
        protection of the project, and of its purpose.  Supervisors, 
        guards, custodians, and caretakers assigned to duty in a project 
        have the powers of peace officers while employed by the 
        department The commissioner of natural resources may employ and 
        designate individuals according to section 85.04 to enforce laws 
        governing the use of the projects. 
           (c) Lands within the project are subject to these rules, 
        whether owned by the state, or privately, consistent with the 
        constitutional rights of the private owners or with applicable 
        state law.  The department may exclude from the operation of the 
        rules any lands owned by private individuals upon which taxes 
        are delinquent for three years or less.  Rules must be published 
        once in the official newspaper of each county affected and take 
        effect 30 days after publication.  They must also be posted on 
        each of the four corners of each township of each project 
        affected. 
           (d) In the management, operation, and control of areas 
        taken for afforestation, reforestation, flood control projects, 
        and wild game and fishing reserves, nothing shall be done that 
        will in any manner obstruct or interfere with the operation of 
        ditches or drainage systems existing within the areas, or damage 
        or destroy existing roads or highways within these areas or 
        projects, unless the ditches, drainage systems, roads, or 
        highways are first taken under the right of eminent domain and 
        compensation made to the property owners and municipalities 
        affected and damaged.  Each area or project shall contribute 
        from the funds of the project, in proportion of the state land 
        within the project, for the construction and maintenance of 
        roads and highways necessary within the areas and projects to 
        give the settlers and private owners within them access to their 
        land.  The department may construct and maintain roads and 
        highways within the areas and projects as it considers necessary.
           Sec. 39.  Minnesota Statutes 2002, section 84A.55, 
        subdivision 8, is amended to read: 
           Subd. 8.  [POLICING.] The commissioner may police the game 
        preserves, areas, and projects as necessary to carry out this 
        section.  Persons assigned to the policing have the powers of 
        police officers while so engaged The commissioner may employ and 
        designate individuals according to section 85.04 to enforce laws 
        governing the use of the game preserves, areas, and projects. 
           Sec. 40.  [84B.12] [CITIZENS COUNCIL ON VOYAGEURS NATIONAL 
        PARK.] 
           (a) The governor may appoint, except for the legislative 
        members, a citizens council on Voyageurs National Park, 
        consisting of 17 members as follows: 
           (1) four residents of Koochiching county; 
           (2) four residents of St. Louis county; 
           (3) five residents of the state, at large, from outside 
        Koochiching and St. Louis counties; 
           (4) two members of the senate to be appointed by the 
        committee on committees; 
           (5) two members of the house of representatives to be 
        appointed by the speaker of the house. 
           (b) The governor shall designate one of the appointees to 
        serve as chair and the committee may elect other officers that 
        it considers necessary.  Members shall be appointed so as to 
        represent differing viewpoints and interest groups on the 
        facilities included in and around the park.  Legislative members 
        shall serve for the term of the legislative office to which they 
        were elected.  The terms, compensation and removal of 
        nonlegislative members of the council are as provided in section 
        15.059.  The council expires June 30, 2007. 
           (c) The executive committee of the council consists of the 
        legislative members and the chair.  The executive committee 
        shall act on matters of personnel, out-of-state trips by members 
        of the council, and nonroutine monetary issues. 
           (d) The committee shall conduct meetings and research into 
        all matters related to the establishment and operation of 
        Voyageurs National Park, and shall make such recommendations to 
        the United States National Park Service and other federal and 
        state agencies concerned regarding operation of the park as the 
        committee deems advisable.  A copy of each recommendation shall 
        be filed with the legislative reference library.  Subject to the 
        availability of legislative appropriation or other funding, the 
        committee may employ staff and may contract for consulting 
        services relating to matters within its authority. 
           (e) Money appropriated to provide the payments prescribed 
        by this section is appropriated to the commissioner of 
        administration. 
           Sec. 41.  Minnesota Statutes 2002, section 84D.14, is 
        amended to read: 
           84D.14 [EXEMPTIONS.] 
           This chapter does not apply to: 
           (1) pathogens and terrestrial arthropods regulated under 
        sections 18.44 to 18.61; or 
           (2) mammals and birds defined by statute as livestock. 
           Sec. 42.  Minnesota Statutes 2002, section 85.04, is 
        amended to read: 
           85.04 [ENFORCEMENT DIVISION EMPLOYEES AS PEACE OFFICERS.] 
           Subdivision 1.  [PEACE OFFICER EMPLOYMENT.] All 
        supervisors, guards, custodians, keepers, and caretakers The 
        commissioner of natural resources may employ peace officers as 
        defined under section 626.84, subdivision 1, paragraph (c), to 
        enforce laws governing the use of state parks, state monuments, 
        state recreation areas, and state waysides shall have and 
        possess the authority and powers of peace officers while in 
        their employment.  
           Subd. 2.  [OTHER EMPLOYEES.] Until August 1, 2004, the 
        commissioner of natural resources may designate certain 
        employees to enforce laws governing the use of state parks, 
        state monuments, state recreation areas, state waysides, and 
        state forest subareas.  The designation by the commissioner is 
        not subject to rulemaking under Minnesota Statutes, chapter 14. 
           Sec. 43.  Minnesota Statutes 2002, section 85.052, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FEE FOR CERTAIN PARKING AND CAMPSITE USE.] (a) 
        An individual using spaces in state parks under subdivision 1, 
        clause (2), shall be charged daily rates determined and set by 
        the commissioner in a manner and amount consistent with the type 
        of facility provided for the accommodation of guests in a 
        particular park and with similar facilities offered for tourist 
        camping and similar use in the area.  
           (b) The fee for special parking spurs, campgrounds for 
        automobiles, sites for tent camping, and special auto trailer 
        coach parking spaces is one-half of the fee set in paragraph (a) 
        on Sunday through Thursday of each week for a physically 
        handicapped person: 
           (1) an individual age 65 or over who is a resident of the 
        state and who furnishes satisfactory proof of age and residence; 
           (2) a physically handicapped person with a motor vehicle 
        that has special plates issued under section 168.021, 
        subdivision 1; or 
           (3) a physically handicapped person (2) who possesses a 
        certificate issued under section 169.345, subdivision 3.  
           Sec. 44.  Minnesota Statutes 2002, section 85.053, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FORM, ISSUANCE, VALIDITY.] (a) The 
        commissioner shall prepare and provide state park permits for 
        each calendar year that state a motor vehicle may enter and use 
        state parks, state recreation areas, and state waysides over 50 
        acres in area.  State park permits must be available and placed 
        on sale by October January 1 of the year preceding the calendar 
        year that the permit is valid.  A separate motorcycle permit may 
        be prepared and provided by the commissioner. 
           (b) An annual state park permit must be affixed when 
        purchased and may be used from the time it is affixed for a 
        12-month period.  State park permits in each category must be 
        numbered consecutively for each year of issue.  
           (c) State park permits shall be issued by employees of the 
        division of parks and recreation as designated by the 
        commissioner.  State park permits also may be consigned to and 
        issued by agents designated by the commissioner who are not 
        employees of the division of parks and recreation.  All proceeds 
        from the sale of permits and all unsold permits consigned to 
        agents shall be returned to the commissioner at such times as 
        the commissioner may direct, but no later than the end of the 
        calendar year for which the permits are effective.  No part of 
        the permit fee may be retained by an agent.  An additional 
        charge or fee in an amount to be determined by the commissioner, 
        but not to exceed four percent of the price of the permit, may 
        be collected and retained by an agent for handling or selling 
        the permits. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 45.  Minnesota Statutes 2002, section 85.055, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FEES.] The fee for state park permits for: 
           (1) an annual use of state parks is $20 $25; 
           (2) a second vehicle state park permit is $15 $18; 
           (3) a state park permit valid for one day is $4 $7; 
           (4) a daily vehicle state park permit for groups is $2 $5; 
           (5) an employee's state park permit is without charge; and 
           (6) a state park permit for handicapped persons under 
        section 85.053, subdivision 7, clauses (1) and (2), is $12. 
           The fees specified in this subdivision include any sales 
        tax required by state law. 
           Sec. 46.  Minnesota Statutes 2002, section 85A.02, 
        subdivision 17, is amended to read: 
           Subd. 17.  [ADDITIONAL POWERS.] (a) The board may establish 
        a schedule of charges for admission to or the use of the 
        Minnesota zoological garden or any related facility.  
        Notwithstanding section 16A.1283, legislative approval is not 
        required for the board to establish a schedule of charges for 
        admission or use of the Minnesota zoological garden or related 
        facilities.  The board shall have a policy admitting elementary 
        school children at no a reduced charge when they are part of an 
        organized school activity.  The Minnesota zoological garden will 
        offer free admission throughout the year to economically 
        disadvantaged Minnesota citizens equal to ten percent of the 
        average annual attendance.  However, the zoo may charge at any 
        time for parking, special services, and for admission to special 
        facilities for the education, entertainment, or convenience of 
        visitors. 
           (b) The board may provide for the purchase, reproduction, 
        and sale of gifts, souvenirs, publications, informational 
        materials, food and beverages, and grant concessions for the 
        sale of these items.  Notwithstanding subdivision 5b, section 
        16C.09 does not apply to activities authorized under this 
        paragraph. 
           Sec. 47.  Minnesota Statutes 2002, section 86B.415, 
        subdivision 8, is amended to read: 
           Subd. 8.  [REGISTRAR'S FEE.] In addition to the license fee 
        other fees prescribed by law, a filing fee of $2 $4.50 shall be 
        charged for a each watercraft license renewal, duplicate or 
        replacement license, and replacement decal and a filing fee of 
        $7 shall be charged for each watercraft license and license 
        transfer issued by: 
           (1) issued through the registrar or a deputy registrar of 
        motor vehicles and the additional fee shall be disposed of in 
        the manner provided in section 168.33, subdivision 2; or 
           (2) issued through the commissioner and the additional fee 
        shall be deposited in the state treasury and credited to the 
        water recreation account. 
           Sec. 48.  Minnesota Statutes 2002, section 86B.870, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FEES.] (a) The fee to be paid to the 
        commissioner: 
           (1) for issuing an original certificate of title, including 
        the concurrent notation of an assignment of the security 
        interest and its subsequent release or satisfaction, is $15; 
           (2) for each security interest when first noted upon a 
        certificate of title, including the concurrent notation of an 
        assignment of the security interest and its subsequent release 
        or satisfaction, is $10; 
           (3) for transferring the interest of an owner and issuing a 
        new certificate of title, is $10; 
           (4) for each assignment of a security interest when first 
        noted on a certificate of title, unless noted concurrently with 
        the security interest, is $1; and 
           (5) for issuing a duplicate certificate of title, is $4. 
           (b) In addition to other statutory fees and taxes, a filing 
        fee of $3.50 $7 is imposed on every watercraft title application.
        The filing fee must be shown as a separate item on title renewal 
        notices sent by the commissioner. 
           Sec. 49.  Minnesota Statutes 2002, section 97A.045, is 
        amended by adding a subdivision to read: 
           Subd. 11.  [POWER TO PREVENT OR CONTROL WILDLIFE 
        DISEASE.] (a) If the commissioner determines that action is 
        necessary to prevent or control a wildlife disease, the 
        commissioner may prevent or control wildlife disease in a 
        species of wild animal in addition to the protection provided by 
        the game and fish laws by further limiting, closing, expanding, 
        or opening seasons or areas of the state; by reducing or 
        increasing limits in areas of the state; by establishing disease 
        management zones; by authorizing free licenses; by allowing 
        shooting from motor vehicles by persons designated by the 
        commissioner; by issuing replacement licenses for sick animals; 
        by requiring sample collection from hunter-harvested animals; by 
        limiting wild animal possession, transportation, and 
        disposition; and by restricting wildlife feeding.  
           (b) The commissioner may prevent or control wildlife 
        disease in a species of wild animal in the state by emergency 
        rule adopted under section 84.027, subdivision 13. 
           Sec. 50.  Minnesota Statutes 2002, section 97A.071, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REVENUE FROM THE SMALL GAME LICENSE SURCHARGE 
        AND LIFETIME LICENSES.] Revenue from the small game surcharge 
        and $4 $6.50 annually from the lifetime fish and wildlife trust 
        fund, established in section 97A.4742, for each license issued 
        under sections 97A.473, subdivisions 3 and 5, and 97A.474, 
        subdivision 3, shall be credited to the wildlife acquisition 
        account and the money in the account shall be used by the 
        commissioner only for the purposes of this section, and 
        acquisition and development of wildlife lands under section 
        97A.145 and maintenance of the lands, in accordance with 
        appropriations made by the legislature. 
           [EFFECTIVE DATE.] This section is effective March 1, 2004. 
           Sec. 51.  Minnesota Statutes 2002, 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 (4), (5), 
        and (9), (11), (13), and (14), and 3, clauses (2), (3), and (7), 
        and licenses issued under section 97B.301, subdivision 4.  
           (b) At least $2 from each annual deer license and $2 
        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 used for deer habitat 
        improvement or deer management programs.  
           (c) At least $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 used for 
        deer and bear management programs, including a computerized 
        licensing system.  Fifty cents from each deer license is 
        appropriated for emergency deer feeding and wild cervidae health 
        management of chronic wasting disease.  Money appropriated for 
        emergency deer feeding and management of chronic wasting disease 
        wild cervidae health management is available until expended.  
        When the unencumbered balance in the appropriation for emergency 
        deer feeding and chronic wasting disease wild cervidae health 
        management at the end of a fiscal year 
        exceeds $1,500,000 $2,500,000 for the first time, $750,000 is 
        canceled to the unappropriated balance of the game and fish 
        fund.  The commissioner must inform the legislative chairs of 
        the natural resources finance committees every two years on how 
        the money for chronic wasting disease emergency deer feeding and 
        wild cervidae health management has been spent. 
           Thereafter, when the unencumbered balance in the 
        appropriation for emergency deer feeding and wild cervidae 
        health management exceeds $1,500,000 $2,500,000 at the end of a 
        fiscal year, the unencumbered balance in excess of 
        $1,500,000 $2,500,000 is canceled and available for deer and 
        bear management programs and computerized licensing. 
           Sec. 52.  Minnesota Statutes 2002, section 97A.075, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MINNESOTA MIGRATORY WATERFOWL STAMP.] (a) Ninety 
        percent of the revenue from the Minnesota migratory waterfowl 
        stamps must be credited to the waterfowl habitat improvement 
        account.  Money in the account may be used only for: 
           (1) development of wetlands and lakes in the state and 
        designated waterfowl management lakes for maximum migratory 
        waterfowl production including habitat evaluation, the 
        construction of dikes, water control structures and 
        impoundments, nest cover, rough fish barriers, acquisition of 
        sites and facilities necessary for development and management of 
        existing migratory waterfowl habitat and the designation of 
        waters under section 97A.101; 
           (2) management of migratory waterfowl; 
           (3) development, restoration, maintenance, or preservation 
        of migratory waterfowl habitat; and 
           (4) acquisition of and access to structure sites; and 
           (5) the promotion of waterfowl habitat development and 
        maintenance, including promotion and evaluation of government 
        farm program benefits for waterfowl habitat.  
           (b) Money in the account may not be used for costs unless 
        they are directly related to a specific parcel of land or body 
        of water under paragraph (a), clause (1), (3), or (4), or (5), 
        or to specific management activities under paragraph (a), clause 
        (2). 
           Sec. 53.  Minnesota Statutes 2002, section 97A.075, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PHEASANT STAMP.] (a) Ninety percent of the 
        revenue from pheasant stamps must be credited to the pheasant 
        habitat improvement account.  Money in the account may be used 
        only for:  
           (1) the development, restoration, and maintenance of 
        suitable habitat for ringnecked pheasants on public and private 
        land including the establishment of nesting cover, winter cover, 
        and reliable food sources; 
           (2) reimbursement of landowners for setting aside lands for 
        pheasant habitat; 
           (3) reimbursement of expenditures to provide pheasant 
        habitat on public and private land; and 
           (4) the promotion of pheasant habitat development and 
        maintenance, including promotion and evaluation of government 
        farm program benefits for pheasant habitat; and 
           (5) the acquisition of lands suitable for pheasant habitat 
        management and public hunting.  
           (b) Money in the account may not be used for: 
           (1) costs unless they are directly related to a specific 
        parcel of land under paragraph (a), clauses 
        clause (1) to, (3), or (5), or to specific promotional or 
        evaluative activities under paragraph (a), clause (4); or 
           (2) any personnel costs, except that prior to July 1, 2009, 
        personnel may be hired to provide technical and promotional 
        assistance for private landowners to implement conservation 
        provisions of state and federal programs. 
           Sec. 54.  Minnesota Statutes 2002, section 97A.105, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LICENSE REQUIREMENTS.] (a) A person may 
        breed and propagate fur-bearing animals, game birds, bear, 
        moose, elk, caribou, or mute swans, or deer only on privately 
        owned or leased land and after obtaining a license.  Any of the 
        permitted animals on a game farm may be sold to other licensed 
        game farms.  "Privately owned or leased land" includes waters 
        that are shallow or marshy, are not actually navigable, and are 
        not of substantial beneficial public use.  Before an application 
        for a license is considered, the applicant must enclose the area 
        to sufficiently confine the animals to be raised in a manner 
        approved by the commissioner.  A license may be granted only if 
        the commissioner finds the application is made in good faith 
        with intention to actually carry on the business described in 
        the application and the commissioner determines that the 
        facilities are adequate for the business.  
           (b) A person may purchase live game birds or their eggs 
        without a license if the birds or eggs, or birds hatched from 
        the eggs, are released into the wild, consumed, or processed for 
        consumption within one year after they were purchased or 
        hatched.  This paragraph does not apply to the purchase of 
        migratory waterfowl or their eggs. 
           (c) A person may not introduce mute swans into the wild 
        without a permit issued by the commissioner. 
           [EFFECTIVE DATE.] This section is effective January 1, 2004.
           Sec. 55.  Minnesota Statutes 2002, section 97A.401, 
        subdivision 3, is amended to read: 
           Subd. 3.  [TAKING, POSSESSING, AND TRANSPORTING WILD 
        ANIMALS FOR CERTAIN PURPOSES.] (a) Except as provided in 
        paragraph (b), special permits may be issued without a fee to 
        take, possess, and transport wild animals as pets and for 
        scientific, educational, rehabilitative, wildlife disease 
        prevention and control, and exhibition purposes.  The 
        commissioner shall prescribe the conditions for taking, 
        possessing, transporting, and disposing of the wild animals.  
           (b) A special permit may not be issued to take or possess 
        wild or native deer for exhibition or, propagation, or as pets.  
           (c) The commissioner shall establish criteria for issuing 
        special permits for persons to possess wild and native deer as 
        pets. 
           Sec. 56.  Minnesota Statutes 2002, section 97A.441, 
        subdivision 7, is amended to read: 
           Subd. 7.  [OWNERS OR TENANTS OF AGRICULTURAL LAND.] (a) The 
        commissioner may issue, without a fee, a license to take an 
        antlerless deer to a person who is an owner or tenant and is 
        living and actively farming on at least 80 acres of agricultural 
        land, as defined in section 97B.001, in deer permit areas that 
        have deer archery licenses to take additional deer under section 
        97B.301, subdivision 4.  A person may receive only one license 
        per year under this subdivision.  For properties with coowners 
        or cotenants, only one coowner or cotenant may receive a license 
        under this subdivision per year.  The license issued under this 
        subdivision is restricted to the land owned or leased by the 
        holder of the license within the permit area where the 
        qualifying land is located.  The holder of the license may 
        transfer the license to the holder's spouse or dependent.  
        Notwithstanding sections 97A.415, subdivision 1, and 97B.301, 
        subdivision 2, the holder of the license may purchase an 
        additional license for taking deer and may take an additional 
        deer under that license. 
           (b) A person who obtains a license under paragraph (a) must 
        allow public deer hunting on their land during that deer hunting 
        season, with the exception of the first Saturday and Sunday 
        during the deer hunting season applicable to the license issued 
        under section 97A.475, subdivision 2, clause clauses (4) and 
        (13). 
           Sec. 57.  Minnesota Statutes 2002, section 97A.441, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [TAKING WILD ANIMALS FOR WILDLIFE DISEASE 
        PREVENTION AND CONTROL.] The commissioner may issue, without a 
        fee, licenses to take wild animals for the purposes of wildlife 
        disease prevention and control. 
           Sec. 58.  Minnesota Statutes 2002, section 97A.475, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RESIDENT HUNTING.] Fees for the following 
        licenses, to be issued to residents only, are: 
           (1) for persons age 18 or over and under age 65 to take 
        small game, $12 $12.50; 
           (2) for persons age ages 16 and 17 and age 65 or over, $6 
        to take small game; 
           (3) to take turkey, $18; 
           (4) for persons age 16 or over to take deer with firearms, 
        $25 $26; 
           (5) for persons age 16 or over to take deer by archery, 
        $25 $26; 
           (6) to take moose, for a party of not more than six 
        persons, $310; 
           (7) to take bear, $38; 
           (8) to take elk, for a party of not more than two persons, 
        $250; 
           (9) to take antlered deer in more than one zone, $50 $52; 
           (10) to take Canada geese during a special season, $4; 
           (11) to take two deer throughout the state in any open deer 
        season, except as restricted under section 97B.305, $75 $78; and 
           (12) to take prairie chickens, $20; 
           (13) for persons at least age 12 and under age 16 to take 
        deer with firearms, $13; and 
           (14) for persons at least age 12 and under age 16 to take 
        deer by archery, $13. 
           [EFFECTIVE DATES.] Clauses (4), (5), (9), (11), (13), and 
        (14), are effective August 1, 2003.  Clauses (1) and (2) are 
        effective March 1, 2004. 
           Sec. 59.  Minnesota Statutes 2002, section 97A.475, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NONRESIDENT HUNTING.] Fees for the following 
        licenses, to be issued to nonresidents, are: 
           (1) to take small game, $73; 
           (2) to take deer with firearms, $125 $135; 
           (3) to take deer by archery, $125 $135; 
           (4) to take bear, $195; 
           (5) to take turkey, $73; 
           (6) to take raccoon, bobcat, fox, coyote, or lynx, $155; 
           (7) to take antlered deer in more than one zone, $250 $270; 
        and 
           (8) to take Canada geese during a special season, $4. 
           [EFFECTIVE DATE.] This section is effective August 1, 2003. 
           Sec. 60.  Minnesota Statutes 2002, section 97A.475, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SMALL GAME SURCHARGE.] Fees for annual licenses 
        to take small game must be increased by a surcharge of 
        $4 $6.50.  An additional commission may not be assessed on the 
        surcharge and this must be stated on the back of the license 
        with the following statement must be included in the annual 
        small game hunting regulations:  "This $4 $6.50 surcharge is 
        being paid by hunters for the acquisition and development of 
        wildlife lands." 
           [EFFECTIVE DATE.] This section is effective March 1, 2004. 
           Sec. 61.  Minnesota Statutes 2002, section 97A.475, 
        subdivision 5, is amended to read: 
           Subd. 5.  [HUNTING STAMPS.] Fees for the following stamps 
        and stamp validations are: 
           (1) migratory waterfowl stamp, $5 $7.50; 
           (2) pheasant stamp, $5 $7.50; and 
           (3) turkey stamp validation, $5.  
           [EFFECTIVE DATE.] This section is effective March 1, 2004. 
           Sec. 62.  Minnesota Statutes 2002, section 97A.475, 
        subdivision 10, is amended to read: 
           Subd. 10.  [TROUT AND SALMON STAMP VALIDATION.] The fee for 
        a trout and salmon stamp validation is $8.50 $10.  
           [EFFECTIVE DATE.] This section is effective March 1, 2004. 
           Sec. 63.  Minnesota Statutes 2002, section 97A.475, 
        subdivision 15, is amended to read: 
           Subd. 15.  [FISHING GUIDES.] The fee for a license to 
        operate a charter boat and guide anglers on Lake Superior or the 
        St. Louis river estuary is: 
           (1) for a resident, $35 $125; 
           (2) for a nonresident, $140 $400; or 
           (3) if another state charges a Minnesota resident a fee 
        greater than $140 $440 for a Lake Superior or St. Louis river 
        estuary fishing guide license in that state, the nonresident fee 
        for a resident of that state is that greater fee.  
           [EFFECTIVE DATE.] This section is effective March 1, 2004. 
           Sec. 64.  Minnesota Statutes 2002, section 97A.475, 
        subdivision 26, is amended to read: 
           Subd. 26.  [MINNOW DEALERS.] The fees for the following 
        licenses are:  
           (1) minnow dealer, $100 $310; 
           (2) minnow dealer's vehicle, $15; 
           (3) exporting minnow dealer, $350 $700; and 
           (4) exporting minnow dealer's vehicle, $15. 
           [EFFECTIVE DATE.] This section is effective March 1, 2004. 
           Sec. 65.  Minnesota Statutes 2002, section 97A.475, 
        subdivision 27, is amended to read: 
           Subd. 27.  [MINNOW RETAILERS.] The fees for the following 
        licenses, to be issued to residents and nonresidents, are: 
           (1) minnow retailer, $15 $47; and 
           (2) minnow retailer's vehicle, $15.  
           [EFFECTIVE DATE.] This section is effective March 1, 2004.  
           Sec. 66.  Minnesota Statutes 2002, section 97A.475, 
        subdivision 28, is amended to read: 
           Subd. 28.  [NONRESIDENT MINNOW HAULERS.] The fees for the 
        following licenses, to be issued to nonresidents, are: 
           (1) exporting minnow hauler, $675 $1,000; and 
           (2) exporting minnow hauler's vehicle, $15.  
           [EFFECTIVE DATE.] This section is effective March 1, 2004. 
           Sec. 67.  Minnesota Statutes 2002, section 97A.475, 
        subdivision 29, is amended to read: 
           Subd. 29.  [PRIVATE FISH HATCHERIES.] The fees for the 
        following licenses to be issued to residents and nonresidents 
        are:  
           (1) for a private fish hatchery, with annual sales under 
        $200, $35 $70; 
           (2) for a private fish hatchery, with annual sales of $200 
        or more, $70 $210; and 
           (3) to take sucker eggs from public waters for a private 
        fish hatchery, $210 $400, plus $4 $6 for each quart in excess of 
        100 quarts.  
           [EFFECTIVE DATE.] This section is effective March 1,2004. 
           Sec. 68.  Minnesota Statutes 2002, section 97A.475, 
        subdivision 30, is amended to read: 
           Subd. 30.  [COMMERCIAL NETTING OF FISH.] The fees to take 
        commercial fish are: 
           (1) commercial license fees: 
           (i) for residents and nonresidents seining and netting in 
        inland waters, $90 $120; 
           (ii) for residents netting in Lake Superior, $50 $120; 
           (iii) for residents netting in Lake of the Woods, Rainy, 
        Namakan, and Sand Point lakes, $50 $120; 
           (iv) for residents seining in the Mississippi River from St.
        Anthony Falls to the St. Croix River junction, $50 $120; 
           (v) for residents seining, netting, and set lining in 
        Wisconsin boundary waters from Lake St. Croix to the Iowa 
        border, $50 $120; and 
           (vi) for a resident apprentice license, $25 $55; and 
           (2) commercial gear fees: 
           (i) for each gill net in Lake Superior, Wisconsin boundary 
        waters, and Namakan Lake, $3.50 $5 per 100 feet of net; 
           (ii) for each seine in inland waters, on the Mississippi 
        River as described in section 97C.801, subdivision 2, and in 
        Wisconsin boundary waters, $7 $9 per 100 feet; 
           (iii) for each commercial hoop net in inland 
        waters, $1.25 $2; 
           (iv) for each submerged fyke, trap, and hoop net in Lake 
        Superior, St. Louis Estuary, Lake of the Woods, and Rainy, 
        Namakan, and Sand Point lakes, and for each pound net in Lake 
        Superior, $15 $20; 
           (v) for each stake and pound net in Lake of the 
        Woods, $60 $90; and 
           (vi) for each set line in the Wisconsin boundary waters, 
        $20 $45.  
           [EFFECTIVE DATE.] This section is effective March 1, 2004. 
           Sec. 69.  Minnesota Statutes 2002, section 97A.475, 
        subdivision 38, is amended to read: 
           Subd. 38.  [FISH BUYERS.] The fees for licenses to buy fish 
        from commercial fishing licensees to be issued residents and 
        nonresidents are: 
           (1) for Lake Superior fish bought for sale to retailers, 
        $70 $150; 
           (2) for Lake Superior fish bought for sale to consumers, 
        $15 $35; 
           (3) for Lake of the Woods, Namakan, Sand Point, and Rainy 
        Lake fish bought for sale to retailers, $140 $300; and 
           (4) for Lake of the Woods, Namakan, Sand Point, and Rainy 
        Lake fish bought for shipment only on international boundary 
        waters, $15 $35.  
           [EFFECTIVE DATE.] This section is effective March 1, 2004. 
           Sec. 70.  Minnesota Statutes 2002, section 97A.475, 
        subdivision 39, is amended to read: 
           Subd. 39.  [FISH PACKER.] The fee for a license to prepare 
        dressed game fish for transportation or shipment is $20 $40. 
           [EFFECTIVE DATE.] This section is effective March 1, 2004. 
           Sec. 71.  Minnesota Statutes 2002, section 97A.475, 
        subdivision 40, is amended to read: 
           Subd. 40.  [FISH VENDORS.] The fee for a license to use a 
        motor vehicle to sell fish is $35 $70.  
           [EFFECTIVE DATE.] This section is effective March 1, 2004. 
           Sec. 72.  Minnesota Statutes 2002, section 97A.475, 
        subdivision 42, is amended to read: 
           Subd. 42.  [FROG DEALERS.] The fee for the licenses to deal 
        in frogs that are to be used for purposes other than bait are: 
           (1) for a resident to purchase, possess, and transport 
        frogs, $100 $220; 
           (2) for a nonresident to purchase, possess, and transport 
        frogs, $280 $550; and 
           (3) for a resident to take, possess, transport, and sell 
        frogs, $15 $35. 
           [EFFECTIVE DATE.] This section is effective March 1, 2004. 
           Sec. 73.  Minnesota Statutes 2002, section 97A.475, is 
        amended by adding a subdivision to read: 
           Subd. 45.  [CAMP RIPLEY ARCHERY DEER HUNT.] The application 
        fee for the Camp Ripley archery deer hunt is $8. 
           Sec. 74.  Minnesota Statutes 2002, section 97A.485, 
        subdivision 6, is amended to read: 
           Subd. 6.  [LICENSES TO BE SOLD AND ISSUING FEES.] (a) 
        Persons authorized to sell licenses under this section must sell 
        issue the following licenses for the license fee and the 
        following issuing fees:  
           (1) to take deer or bear with firearms and by archery, the 
        issuing fee is $1; 
           (2) Minnesota sporting, the issuing fee is $1; and 
           (3) to take small game, for a person under age 65 to take 
        fish by angling or for a person of any age to take fish by 
        spearing, and to trap fur-bearing animals, the issuing fee is 
        $1; 
           (4) for a trout and salmon stamp that is not issued 
        simultaneously with an angling or sporting license, an issuing 
        fee of 50 cents may be charged at the discretion of the 
        authorized seller; and 
           (5) for stamps other than a trout and salmon stamp, and for 
        a special season Canada goose license, there is no fee; and 
           (6) for licenses issued without a fee under section 
        97A.441, there is no fee. 
           (b) An issuing fee may not be collected for issuance of a 
        trout and salmon stamp if a stamp validation is issued 
        simultaneously with the related angling or sporting license.  
        Only one issuing fee may be collected when selling more than one 
        trout and salmon stamp in the same transaction after the end of 
        the season for which the stamp was issued. 
           (c) The auditor or subagent shall keep the issuing fee as a 
        commission for selling the licenses.  
           (d) The commissioner shall collect the issuing fee on 
        licenses sold by the commissioner. 
           (e) A license, except stamps, must state the amount of the 
        issuing fee and that the issuing fee is kept by the seller as a 
        commission for selling the licenses. 
           (f) For duplicate licenses, the issuing fees are: 
           (1) for licenses to take big game, 75 cents; and 
           (2) for other licenses, 50 cents. 
           Sec. 75.  Minnesota Statutes 2002, section 97A.505, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [IMPORTATION OF HUNTER-HARVESTED 
        CERVIDAE.] Importation into Minnesota of hunter-harvested 
        cervidae carcasses is prohibited except for cut and wrapped 
        meat, quarters or other portions of meat with no part of the 
        spinal column or head attached, antlers, hides, teeth, finished 
        taxidermy mounts, and antlers attached to skull caps that are 
        cleaned of all brain tissue. 
           Sec. 76.  Minnesota Statutes 2002, section 97A.505, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [POSSESSION OF LIVE CERVIDAE.] A person may not 
        possess live cervidae, except as authorized in sections 17.451 
        and 17.452 or 97A.401. 
           [EFFECTIVE DATE.] This section is effective January 1, 2004.
           Sec. 77.  Minnesota Statutes 2002, section 97B.311, is 
        amended to read: 
           97B.311 [DEER SEASONS AND RESTRICTIONS.] 
           (a) The commissioner may, by rule, prescribe restrictions 
        and designate areas where deer may be taken, including hunter 
        selection criteria for special hunts established under section 
        97A.401, subdivision 4.  The commissioner may, by rule, 
        prescribe the open seasons for deer within the following periods:
           (1) taking with firearms, other than muzzle-loading 
        firearms, between November 1 and December 15; 
           (2) taking with muzzle-loading firearms between September 1 
        and December 31; and 
           (3) taking by archery between September 1 and December 31. 
           (b) Notwithstanding paragraph (a), the commissioner may 
        establish special seasons within designated areas between 
        September 1 and January 15 at any time of year. 
           Sec. 78.  Minnesota Statutes 2002, section 103B.231, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [PRIORITY SCHEDULE.] (a) The board of water and 
        soil resources in consultation with the state review agencies 
        and the metropolitan council shall may develop a priority 
        schedule for the revision of plans required under this chapter. 
           (b) The prioritization should be based on but not be 
        limited to status of current plan, scheduled revision dates, 
        anticipated growth and development, existing and potential 
        problems, and regional water quality goals and priorities. 
           (c) The schedule will be used by the board of water and 
        soil resources in consultation with the state review agencies 
        and the metropolitan council to direct watershed management 
        organizations of when they will be required to revise their 
        plans. 
           (d) Upon notification from the board of water and soil 
        resources that a revision of a plan is required, a watershed 
        management organization shall have 24 months from the date of 
        notification to revise and submit a plan for review. 
           (e) In the event that a plan expires prior to notification 
        from the board of water and soil resources under this section, 
        the existing plan, authorities, and official controls of a 
        watershed management organization shall remain in full force and 
        effect until a revision is approved. 
           (f) A one-year extension to submit a revised plan may be 
        granted by the board. 
           (g) (e) Watershed management organizations submitting plans 
        and draft plan amendments for review prior to the board's 
        priority review schedule, may proceed to adopt and implement the 
        plan revisions without formal board approval if the board fails 
        to adjust its priority review schedule for plan review, and 
        commence its statutory review process within 45 days of 
        submittal of the plan revision or amendment. 
           Sec. 79.  Minnesota Statutes 2002, section 103B.305, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COMPREHENSIVE LOCAL WATER MANAGEMENT PLAN.] 
        "Comprehensive local water management plan," means 
        "comprehensive water plan," "local water plan," and "local water 
        management plan" mean the plan adopted by a county under 
        sections 103B.311 and 103B.315.  
           Sec. 80.  Minnesota Statutes 2002, section 103B.305, is 
        amended by adding a subdivision to read: 
           Subd. 7a.  [PLAN AUTHORITY.] "Plan authority" means those 
        local government units coordinating planning under sections 
        103B.301 to 103B.335. 
           Sec. 81.  Minnesota Statutes 2002, section 103B.305, is 
        amended by adding a subdivision to read: 
           Subd. 7b.  [PRIORITY CONCERNS.] "Priority concerns" means 
        issues, resources, subwatersheds, or demographic areas that are 
        identified as a priority by the plan authority. 
           Sec. 82.  Minnesota Statutes 2002, section 103B.305, is 
        amended by adding a subdivision to read: 
           Subd. 7c.  [PRIORITY CONCERNS SCOPING DOCUMENT.] "Priority 
        concerns scoping document" means the list of the chosen priority 
        concerns and a detailed account of how those concerns were 
        identified and chosen. 
           Sec. 83.  Minnesota Statutes 2002, section 103B.305, is 
        amended by adding a subdivision to read: 
           Subd. 8a.  [STATE REVIEW AGENCIES.] "State review agencies" 
        means the board of water and soil resources, the department of 
        agriculture, the department of health, the department of natural 
        resources, the pollution control agency, and other agencies 
        granted state review status by a resolution of the board. 
           Sec. 84.  Minnesota Statutes 2002, section 103B.311, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COUNTY DUTIES.] Each county is encouraged 
        to develop and implement a comprehensive local water management 
        plan.  Each county that develops and implements a plan has the 
        duty and authority to: 
           (1) prepare and adopt a comprehensive local water 
        management plan that meets the requirements of this section and 
        section 103B.315; 
           (2) review water and related land resources plans and 
        official controls submitted by local units of government to 
        assure consistency with the comprehensive local water management 
        plan; and 
           (3) exercise any and all powers necessary to assure 
        implementation of comprehensive local water management plans.  
           Sec. 85.  Minnesota Statutes 2002, section 103B.311, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DELEGATION.] The county is responsible for 
        preparing, adopting, and assuring implementation of the 
        comprehensive local water management plan, but may delegate all 
        or part of the preparation of the plan to a local unit of 
        government, a regional development commission, or a resource 
        conservation and development committee.  The county may not 
        delegate authority for the exercise of eminent domain, taxation, 
        or assessment to a local unit of government that does not 
        possess those powers.  
           Sec. 86.  Minnesota Statutes 2002, section 103B.311, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COORDINATION.] (a) To assure the coordination of 
        efforts of all local units of government within a county during 
        the preparation and implementation of a comprehensive local 
        water management plan, each county intending to adopt a plan 
        shall conduct meetings with other local units of government and 
        may execute agreements with other local units of government 
        establishing the responsibilities of each unit during the 
        preparation and implementation of the comprehensive local water 
        management plan. 
           (b) Each county intending to adopt a plan shall coordinate 
        its planning program with contiguous counties.  Before meeting 
        with local units of government, a county board shall notify the 
        county boards of each county contiguous to it that the county is 
        about to begin preparing its comprehensive local water 
        management plan and is encouraged to request and hold a joint 
        meeting with the contiguous county boards to consider the 
        planning process.  
           Sec. 87.  Minnesota Statutes 2002, section 103B.311, 
        subdivision 4, is amended to read: 
           Subd. 4.  [WATER PLAN REQUIREMENTS.] (a) A 
        comprehensive local water management plan must: 
           (1) cover the entire area within a county; 
           (2) address water problems in the context of watershed 
        units and groundwater systems; 
           (3) be based upon principles of sound hydrologic management 
        of water, effective environmental protection, and efficient 
        management; 
           (4) be consistent with comprehensive local water management 
        plans prepared by counties and watershed management 
        organizations wholly or partially within a single watershed unit 
        or groundwater system; and 
           (5) the comprehensive local water management plan must 
        specify the period covered by the comprehensive local water 
        management plan and must extend at least five years but no more 
        than ten years from the date the board approves 
        the comprehensive local water management plan.  
        Comprehensive Local water management plans that contain revision 
        dates inconsistent with this section must comply with that date, 
        provided it is not more than ten years beyond the date of board 
        approval.  A two-year extension of the revision date of 
        a comprehensive local water management plan may be granted by 
        the board, provided no projects are ordered or commenced during 
        the period of the extension. 
           (b) Existing water and related land resources plans, 
        including plans related to agricultural land preservation 
        programs developed pursuant to chapter 40A, must be fully 
        utilized in preparing the comprehensive local water management 
        plan.  Duplication of the existing plans is not required.  
           Sec. 88.  [103B.312] [IDENTIFYING PRIORITY CONCERNS.] 
           Each priority concerns scoping document must contain: 
           (1) the list of proposed priority concerns the plan will 
        address; and 
           (2) a description of how and why the priority concerns were 
        chosen, including: 
           (i) a list of all public and internal forums held to gather 
        input regarding priority concerns, including the dates they were 
        held, a list of participants and affiliated organizations, a 
        summary of the proceedings, and supporting data; 
           (ii) the process used to locally coordinate and resolve 
        differences between the plan's priority concerns and other 
        state, local, and regional concerns; and 
           (iii) a list of issues identified by the stakeholders but 
        not selected as priority concerns, why they were not included in 
        the list of priority concerns, and a brief description of how 
        the concerns may be addressed or delegated to other partnering 
        entities. 
           Sec. 89.  [103B.313] [PLAN DEVELOPMENT.] 
           Subdivision 1.  [NOTICE OF PLAN REVISION.] The local water 
        management plan authority shall send a notice to local 
        government units partially or wholly within the planning 
        jurisdiction, adjacent counties, and state review agencies of 
        their intent to revise the local water management plan.  The 
        notice of a plan revision must include an invitation for all 
        recipients to submit priority concerns they wish to see the plan 
        address. 
           Subd. 2.  [SUBMITTING PRIORITY CONCERNS TO PLANNING 
        AUTHORITY.] Local governments and state review agencies must 
        submit the priority concerns they want the plan to address to 
        the plan authority within 45 days of receiving the notice 
        defined in subdivision 1 or within an otherwise agreed-upon time 
        frame. 
           Subd. 3.  [PUBLIC INFORMATION MEETING.] Before submitting 
        the priority concerns scoping document to the board, the plan 
        authority shall publish a legal notice for and conduct a public 
        information meeting. 
           Subd. 4.  [SUBMITTAL OF PRIORITY CONCERNS SCOPING DOCUMENT 
        TO BOARD.] The plan authority shall send the scoping document to 
        all state review agencies for review and comment.  State review 
        agencies shall provide comments on the plan outline to the board 
        within 30 days of receipt. 
           Subd. 5.  [BOARD REVIEW OF THE PRIORITY CONCERNS SCOPING 
        DOCUMENT.] The board shall review the scoping document and the 
        comments submitted in accordance with this subdivision.  The 
        board shall provide comments to the local plan authority within 
        60 days of receiving the scoping document, or after the next 
        regularly scheduled board meeting, whichever is later.  No local 
        water management plan may be approved pursuant to section 
        103B.315 without addressing items communicated in the board 
        comments to the plan authority.  The plan authority may request 
        that resolution of unresolved issues be addressed pursuant to 
        board policy defined in section 103B.345. 
           Subd. 6.  [REQUESTS FOR EXISTING AGENCY INFORMATION 
        RELEVANT TO PRIORITY CONCERNS SCOPING DOCUMENT.] The state 
        review agencies shall, upon request from the local government, 
        provide existing plans, reports, and data analysis related to 
        priority concerns to the plan author within 60 days from the 
        date of the request or within an otherwise agreed upon time 
        frame. 
           Sec. 90.  [103B.314] [CONTENTS OF PLAN.] 
           Subdivision 1.  [EXECUTIVE SUMMARY.] Each plan must have an 
        executive summary, including: 
           (1) the purpose of the local water management plan; 
           (2) a description of the priority concerns to be addressed 
        by the plan; 
           (3) a summary of goals and actions to be taken along with 
        the projected total cost of the implementation program; 
           (4) a summary of the consistency of the plan with other 
        pertinent local, state, and regional plans and controls, and 
        where inconsistencies are noted; and 
           (5) a summary of recommended amendments to other plans and 
        official controls to achieve consistency. 
           Subd. 2.  [ASSESSMENT OF PRIORITY CONCERNS.] For each 
        priority concern defined pursuant to section 103B.312, clause 
        (1), the plan shall analyze relevant data, plans, and policies 
        provided by agencies consistent with section 103B.313, 
        subdivision 6, and describe the magnitude of the concern, 
        including how the concern is impacting or changing the local 
        land and water resources. 
           Subd. 3.  [GOALS AND OBJECTIVES ADDRESSING PRIORITY 
        CONCERNS.] Each plan must contain specific measurable goals and 
        objectives relating to the priority concerns and other state, 
        regional, or local concerns.  The goals and objectives must 
        coordinate and attempt to resolve conflict with city, county, 
        regional, or state goals and policies. 
           Subd. 4.  [IMPLEMENTATION PROGRAM FOR PRIORITY 
        CONCERNS.] (a) For the measurable goals identified in 
        subdivision 3, each plan must include an implementation program 
        that includes the items described in paragraphs (b) to (e). 
           (b) An implementation program may include actions 
        involving, but not limited to, data collection programs, 
        educational programs, capital improvement projects, project 
        feasibility studies, enforcement strategies, amendments to 
        existing official controls, and adoption of new official 
        controls.  If the local government finds that no actions are 
        necessary to address the goals and objectives identified in 
        subdivision 3 it must explain why actions are not needed.  Staff 
        and financial resources available or needed to carry out the 
        local water management plan must be stated. 
           (c) The implementation schedule must state the time in 
        which each of the actions contained in the implementation 
        program will be taken. 
           (d) If a local government unit has made any agreement for 
        the implementation of the plan or portions of a plan by another 
        local unit of government, that local unit must be specified, the 
        responsibility indicated, and a description included indicating 
        how and when the implementation will happen. 
           (e) If capital improvement projects are proposed to 
        implement the local water management plan, the projects must be 
        described in the plan.  The description of a proposed capital 
        improvement project must include the following information: 
           (1) the physical components of the project, including their 
        approximate size, configuration, and location; 
           (2) the purposes of the project and relationship to the 
        objectives in the plan; 
           (3) the proposed schedule for project construction; 
           (4) the expected federal, state, and local costs; 
           (5) the types of financing proposed, such as special 
        assessments, ad valorem taxes, and grants; and 
           (6) the sources of local financing proposed. 
           Subd. 5.  [OTHER WATER MANAGEMENT RESPONSIBILITIES AND 
        ACTIVITIES COORDINATED BY PLAN.] The plan must also describe the 
        actions that will be taken to carry out the responsibilities or 
        activities, identify the lead and supporting organizations or 
        government units that will be involved in carrying out the 
        action, and estimate the cost of each action. 
           Subd. 6.  [AMENDMENTS.] The plan authority may initiate an 
        amendment to the local water management plan by submitting a 
        petition to the board and sending copies of the proposed 
        amendment and the date of the public hearing to the following 
        entities for review:  local government units defined in section 
        103B.305, subdivision 5, that are within the plan's 
        jurisdiction; and the state review agencies. 
           After the public hearing the board shall review the 
        amendment pursuant to section 103B.315, subdivision 5, 
        paragraphs (b) and (c).  The amendment becomes part of the local 
        water management plan after being approved by the board.  The 
        board must send the order and the approved amendment to the 
        entities that received the proposed amendment and notice of the 
        public hearing. 
           Sec. 91.  Minnesota Statutes 2002, section 103B.315, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PUBLIC HEARING.] The county board shall conduct 
        a public hearing on the comprehensive local water management 
        plan pursuant to section 375.51 after the 60-day period for 
        local review and comment is completed but before submitting it 
        to the state for review.  
           Sec. 92.  Minnesota Statutes 2002, section 103B.315, 
        subdivision 5, is amended to read: 
           Subd. 5.  [STATE REVIEW.] (a) After conducting the public 
        hearing but before final adoption, the county board must submit 
        its comprehensive local water management plan, all written 
        comments received on the plan, a record of the public hearing 
        under subdivision 4, and a summary of changes incorporated as a 
        result of the review process to the board for review.  The board 
        shall complete the review within 90 days after receiving a 
        comprehensive local water management plan and supporting 
        documents.  The board shall consult with the departments of 
        agriculture, health, and natural resources; the pollution 
        control agency; the environmental quality board; and other 
        appropriate state agencies during the review. 
           (b) The board may disapprove a comprehensive local water 
        management plan if the board determines the plan is not 
        consistent with state law. If a plan is disapproved, the board 
        shall provide a written statement of its reasons for 
        disapproval.  A disapproved comprehensive local water management 
        plan must be revised by the county board and resubmitted for 
        approval by the board within 120 days after receiving notice of 
        disapproval of the comprehensive local water management plan, 
        unless the board extends the period for good cause.  The 
        decision of the board to disapprove the plan may be appealed by 
        the county to district court.  
           (c) If the local government unit disagrees with the board's 
        decision to disapprove the plan, it may, within 60 days, 
        initiate mediation through the board's informal dispute 
        resolution process as established pursuant to section 103B.345, 
        subdivision 1.  A local government unit may appeal disapproval 
        to the court of appeals.  A decision of the board on appeal is 
        subject to judicial review under sections 14.63 to 14.69. 
           Sec. 93.  Minnesota Statutes 2002, section 103B.315, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ADOPTION AND IMPLEMENTATION.] A county board 
        shall adopt and begin implementation of its comprehensive local 
        water management plan within 120 days after receiving notice of 
        approval of the plan from the board.  
           Sec. 94.  Minnesota Statutes 2002, section 103B.321, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL.] The board shall:  
           (1) develop guidelines for the contents of comprehensive 
        local water management plans that provide for a flexible 
        approach to meeting the different water and related land 
        resources needs of counties and watersheds across the state; 
           (2) coordinate assistance of state agencies to counties and 
        other local units of government involved in preparation of 
        comprehensive local water management plans, including 
        identification of pertinent data and studies available from the 
        state and federal government; 
           (3) conduct an active program of information and education 
        concerning the requirements and purposes of sections 103B.301 to 
        103B.355 in conjunction with the association of Minnesota 
        counties; 
           (4) determine contested cases under section 103B.345; 
           (5) establish a process for review of comprehensive local 
        water management plans that assures the plans are consistent 
        with state law; and 
           (6) report to the house of representatives and senate 
        committees with jurisdiction over the environment, natural 
        resources, and agriculture as required by section 103B.351; and 
           (7) make grants to counties for comprehensive local water 
        management planning, implementation of priority actions 
        identified in approved plans, and sealing of abandoned wells. 
           Sec. 95.  Minnesota Statutes 2002, section 103B.321, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RULEMAKING.] The board shall may adopt rules to 
        implement sections 103B.301 to 103B.355.  
           Sec. 96.  Minnesota Statutes 2002, section 103B.325, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIREMENT.] Local units of government 
        shall amend existing water and related land resources plans and 
        official controls as necessary to conform them to the 
        applicable, approved comprehensive local water management plan 
        following the procedures in this section.  
           Sec. 97.  Minnesota Statutes 2002, section 103B.325, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PROCEDURE.] Within 90 days after local units of 
        government are notified by the county board of the adoption of a 
        comprehensive local water management plan or of adoption of an 
        amendment to a comprehensive water plan, the local units of 
        government exercising water and related land resources planning 
        and regulatory responsibility for areas within the county must 
        submit existing water and related land resources plans and 
        official controls to the county board for review.  The county 
        board shall identify any inconsistency between the plans and 
        controls and the comprehensive local water management plan and 
        shall recommend the amendments necessary to bring local plans 
        and official controls into conformance with the comprehensive 
        local water management plan.  
           Sec. 98.  Minnesota Statutes 2002, section 103B.331, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY.] When an approved comprehensive 
        local water management plan is adopted the county has the 
        authority specified in this section.  
           Sec. 99.  Minnesota Statutes 2002, section 103B.331, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REGULATION OF WATER AND LAND RESOURCES.] The 
        county may regulate the use and development of water and related 
        land resources within incorporated areas when one or more of the 
        following conditions exists: 
           (1) the municipality does not have a local water and 
        related land resources plan or official controls consistent with 
        the comprehensive local water management plan; 
           (2) a municipal action granting a variance or conditional 
        use would result in an action inconsistent with the 
        comprehensive local water management plan; 
           (3) the municipality has authorized the county to require 
        permits for the use and development of water and related land 
        resources; or 
           (4) a state agency has delegated the administration of a 
        state permit program to the county.  
           Sec. 100.  Minnesota Statutes 2002, section 103B.331, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ACQUISITION OF PROPERTY; ASSESSMENT OF COSTS.] A 
        county may: 
           (1) acquire in the name of the county, by condemnation 
        under chapter 117, real and personal property found by the 
        county board to be necessary for the implementation of an 
        approved comprehensive local water management plan; 
           (2) assess the costs of projects necessary to implement the 
        comprehensive local water management plan undertaken under 
        sections 103B.301 to 103B.355 upon the property benefited within 
        the county in the manner provided for municipalities by chapter 
        429; 
           (3) charge users for services provided by the county 
        necessary to implement the comprehensive local water management 
        plan; and 
           (4) establish one or more special taxing districts within 
        the county and issue bonds for the purpose of financing capital 
        improvements under sections 103B.301 to 103B.355.  
           Sec. 101.  Minnesota Statutes 2002, section 103B.3363, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COMPREHENSIVE LOCAL WATER MANAGEMENT PLAN.] 
        "Comprehensive local water management plan," means 
        "comprehensive water plan," "local water plan," and "local water 
        management plan" mean a county water plan authorized under 
        section 103B.311, a watershed management plan required under 
        section 103B.231, a watershed management plan required under 
        section 103D.401 or 103D.405, or a county groundwater plan 
        authorized under section 103B.255.  
           Sec. 102.  Minnesota Statutes 2002, section 103B.3369, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ESTABLISHMENT.] A Local Water Resources 
        Protection and Management Program is established.  The board 
        shall may provide financial assistance to counties for local 
        units of government for activities that protect or manage water 
        and related land quality.  The activities include planning, 
        zoning, official controls, and other activities to 
        implement comprehensive local water management plans.  
           Sec. 103.  Minnesota Statutes 2002, section 103B.3369, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CONTRACTS WITH LOCAL GOVERNMENTS.] A county 
        local unit of government may contract with other appropriate 
        local units of government to implement programs.  An explanation 
        of the program responsibilities proposed to be contracted with 
        other local units of government must accompany grant requests.  
        A county local unit of government that contracts with other 
        local units of government is responsible for ensuring that state 
        funds are properly expended and for providing an annual report 
        to the board describing expenditures of funds and program 
        accomplishments.  
           Sec. 104.  Minnesota Statutes 2002, section 103B.3369, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FINANCIAL ASSISTANCE.] The board may award 
        grants to watershed management organizations in the seven-county 
        metropolitan area or counties to carry out water resource 
        protection and management programs identified as priorities in 
        comprehensive local water plans.  Grants may be used to employ 
        persons and to obtain and use information necessary to: 
           (1) develop comprehensive local water plans under sections 
        103B.255 and 103B.311 that have not received state funding for 
        water resources planning as provided for in Laws 1987, chapter 
        404, section 30, subdivision 5, clause (a); 
           (2) revise comprehensive local water plans under section 
        103B.201; and 
           (3) implement comprehensive local water plans.  
        A base grant shall may be awarded to a county that levies a 
        water implementation tax at a rate, which shall be determined by 
        the board.  The minimum amount of the water implementation tax 
        shall be a tax rate times the adjusted net tax capacity of the 
        county for the preceding year.  The rate shall be the rate, 
        rounded to the nearest .001 of a percent, that, when applied to 
        the adjusted net tax capacity for all counties, raises the 
        amount of $1,500,000.  The base grant will be in an amount equal 
        to $37,500 less the amount raised by that levy.  If the amount 
        necessary to implement the local water plan for the county is 
        less than $37,500, the amount of the base grant shall be the 
        amount that, when added to the levy amount, equals the amount 
        required to implement the plan.  For counties where the tax rate 
        generates an amount equal to or greater than $18,750, the base 
        grant shall be in an amount equal to $18,750. 
           Sec. 105.  Minnesota Statutes 2002, section 103B.3369, 
        subdivision 6, is amended to read: 
           Subd. 6.  [LIMITATIONS.] (a) Grants provided to implement 
        programs under this section must be reviewed by the state agency 
        having statutory program authority to assure compliance with 
        minimum state standards.  At the request of the state agency 
        commissioner, the board shall revoke the portion of a grant used 
        to support a program not in compliance.  
           (b) Grants provided to develop or revise comprehensive 
        local water management plans may not be awarded for a time 
        longer than two years.  
           (c) A county local unit of government may not request or be 
        awarded grants for project implementation unless a comprehensive 
        local management water plan has been adopted. 
           Sec. 106.  Minnesota Statutes 2002, section 103B.355, is 
        amended to read: 
           103B.355 [APPLICATION.] 
           Sections 103B.301 to 103B.355 do not apply in areas subject 
        to the requirements of sections 103B.201 to 103B.255 under 
        section 103B.231, subdivision 1, and in areas covered by an 
        agreement under section 103B.231, subdivision 2, except as 
        otherwise provided in sections section 103B.311, subdivision 4, 
        clause (4); and 103B.315, subdivisions 1, clauses (3) and (4), 
        and 2, clause (b). 
           Sec. 107.  Minnesota Statutes 2002, section 103D.341, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PROCEDURE.] (a) Rules of the watershed district 
        must be adopted or amended by a majority vote of the managers, 
        after public notice and hearing.  Rules must be signed by the 
        secretary of the board of managers and recorded in the board of 
        managers' official minute book. 
           (b) Prior to adoption, the proposed rule or amendment to 
        the rule must be submitted to the board for review and comment.  
        The board's review shall be considered advisory.  The board 
        shall have 45 days from receipt of the proposed rule or 
        amendment to the rule to provide its comments in writing to the 
        watershed district.  Proposed rules or amendments to the rule 
        shall also be noticed for review and comment to all public 
        transportation authorities that have jurisdiction within the 
        watershed district at least 45 days prior to adoption.  The 
        public transportation authorities have 45 days from receipt of 
        the proposed rule or amendment to the rule to provide comments 
        in writing to the watershed district.  
           (c) For each county affected by the watershed district, the 
        managers must publish a notice of hearings and adopted rules in 
        one or more legal newspapers published in the county and 
        generally circulated in the watershed district.  The managers 
        must also provide written notice of adopted or amended rules to 
        public transportation authorities that have jurisdiction within 
        the watershed district.  The managers must file adopted rules 
        with the county recorder of each county affected by the 
        watershed district and the board. 
           (d) The managers must mail a copy of the rules to the 
        governing body of each municipality affected by the watershed 
        district.  
           Sec. 108.  Minnesota Statutes 2002, section 103D.345, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [GENERAL PERMITS.] A watershed district may issue 
        general permits for public transportation projects for work on 
        existing roads. 
           Sec. 109.  Minnesota Statutes 2002, section 103D.405, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REQUIRED TEN-YEAR REVISION.] (a) After ten years 
        and six months from the date that the board approved a watershed 
        management plan or the last revised watershed management plan, 
        the managers must consider the requirements under subdivision 1 
        and adopt a revised watershed management plan outline and send a 
        copy of the outline to the board.  
           (b) By 60 days after receiving a revised watershed 
        management plan outline, the board must review it, adopt 
        recommendations regarding the revised watershed management plan 
        outline, and send the recommendations to the managers.  
           (c) By 120 days After receiving the board's recommendations 
        regarding the revised watershed management plan outline, the 
        managers must complete the revised watershed management plan.  
           Sec. 110.  Minnesota Statutes 2002, section 103D.537, is 
        amended to read: 
           103D.537 [APPEALS OF RULES, PERMIT DECISIONS, AND ORDERS 
        NOT INVOLVING PROJECTS.] 
           (a) Except as provided in section 103D.535, an interested 
        party may appeal a permit decision or order made by the managers 
        by a declaratory judgment action brought under chapter 555.  An 
        interested party may appeal a rule made by the managers by a 
        declaratory judgment action brought under chapter 555 or by 
        appeal to the board.  The decision on appeal must be based on 
        the record made in the proceeding before the managers.  An 
        appeal of a permit decision or order must be filed within 30 
        days of the managers' decision. 
           (b) In addition to the authorities identified in paragraph 
        (a), a public transportation authority may appeal a watershed 
        district permit decision to the board.  The board shall, upon 
        request of the public transportation authority, conduct an 
        expedited appeal hearing within 30 days or less from the date of 
        the appeal being accepted. 
           (c) By January 1, 1997 2005, the board shall adopt rules 
        governing appeals to the board under paragraph 
        paragraphs (a) and (b).  A decision of the board on appeal is 
        subject to judicial review under sections 14.63 to 14.69.  The 
        rules authorized in this paragraph are exempt from the 
        rulemaking provisions of chapter 14 except that section 14.386 
        applies and the proposed rules must be submitted to the members 
        of senate and house environment and natural resource and 
        transportation policy committees at least 30 days prior to being 
        published in the State Register.  The amended rules are 
        effective for two years from the date of publication of the 
        rules in the State Register unless they are superseded by 
        permanent rules. 
           Sec. 111.  Minnesota Statutes 2002, section 103G.005, 
        subdivision 10e, is amended to read: 
           Subd. 10e.  [LOCAL GOVERNMENT UNIT.] "Local government 
        unit" means: 
           (1) outside of the seven-county metropolitan area, a city 
        council or, county board of commissioners, or a soil and water 
        conservation district or their delegate; 
           (2) in the seven-county metropolitan area, a city council, 
        a town board under section 368.01, or a watershed management 
        organization under section 103B.211, or a soil and water 
        conservation district or their delegate; and 
           (3) on state land, the agency with administrative 
        responsibility for the land. 
           Sec. 112.  Minnesota Statutes 2002, section 103G.222, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIREMENTS.] (a) Wetlands must not be 
        drained or filled, wholly or partially, unless replaced by 
        restoring or creating wetland areas of at least equal public 
        value under a replacement plan approved as provided in section 
        103G.2242, a replacement plan under a local governmental unit's 
        comprehensive wetland protection and management plan approved by 
        the board under section 103G.2243, or, if a permit to mine is 
        required under section 93.481, under a mining reclamation plan 
        approved by the commissioner under the permit to mine.  Mining 
        reclamation plans shall apply the same principles and standards 
        for replacing wetlands by restoration or creation of wetland 
        areas that are applicable to mitigation plans approved as 
        provided in section 103G.2242.  Public value must be determined 
        in accordance with section 103B.3355 or a comprehensive wetland 
        protection and management plan established under section 
        103G.2243.  Sections 103G.221 to 103G.2372 also apply to 
        excavation in permanently and semipermanently flooded areas of 
        types 3, 4, and 5 wetlands. 
           (b) Replacement must be guided by the following principles 
        in descending order of priority: 
           (1) avoiding the direct or indirect impact of the activity 
        that may destroy or diminish the wetland; 
           (2) minimizing the impact by limiting the degree or 
        magnitude of the wetland activity and its implementation; 
           (3) rectifying the impact by repairing, rehabilitating, or 
        restoring the affected wetland environment; 
           (4) reducing or eliminating the impact over time by 
        preservation and maintenance operations during the life of the 
        activity; 
           (5) compensating for the impact by restoring a wetland; and 
           (6) compensating for the impact by replacing or providing 
        substitute wetland resources or environments. 
           For a project involving the draining or filling of wetlands 
        in an amount not exceeding 10,000 square feet more than the 
        applicable amount in section 103G.2241, subdivision 9, paragraph 
        (a), the local government unit may make an on-site sequencing 
        determination without a written alternatives analysis from the 
        applicant. 
           (c) If a wetland is located in a cultivated field, then 
        replacement must be accomplished through restoration only 
        without regard to the priority order in paragraph (b), provided 
        that a deed restriction is placed on the altered wetland 
        prohibiting nonagricultural use for at least ten years.  
           (d) Restoration and replacement of wetlands must be 
        accomplished in accordance with the ecology of the landscape 
        area affected. 
           (e) Except as provided in paragraph (f), for a wetland or 
        public waters wetland located on nonagricultural land, 
        replacement must be in the ratio of two acres of replaced 
        wetland for each acre of drained or filled wetland. 
           (f) For a wetland or public waters wetland located on 
        agricultural land or in a greater than 80 percent area, 
        replacement must be in the ratio of one acre of replaced wetland 
        for each acre of drained or filled wetland.  
           (g) Wetlands that are restored or created as a result of an 
        approved replacement plan are subject to the provisions of this 
        section for any subsequent drainage or filling. 
           (h) Except in a greater than 80 percent area, only wetlands 
        that have been restored from previously drained or filled 
        wetlands, wetlands created by excavation in nonwetlands, 
        wetlands created by dikes or dams along public or private 
        drainage ditches, or wetlands created by dikes or dams 
        associated with the restoration of previously drained or filled 
        wetlands may be used in a statewide banking program established 
        in rules adopted under section 103G.2242, subdivision 1.  
        Modification or conversion of nondegraded naturally occurring 
        wetlands from one type to another are not eligible for 
        enrollment in a statewide wetlands bank. 
           (i) The technical evaluation panel established under 
        section 103G.2242, subdivision 2, shall ensure that sufficient 
        time has occurred for the wetland to develop wetland 
        characteristics of soils, vegetation, and hydrology before 
        recommending that the wetland be deposited in the statewide 
        wetland bank.  If the technical evaluation panel has reason to 
        believe that the wetland characteristics may change 
        substantially, the panel shall postpone its recommendation until 
        the wetland has stabilized. 
           (j) This section and sections 103G.223 to 103G.2242, 
        103G.2364, and 103G.2365 apply to the state and its departments 
        and agencies. 
           (k) For projects involving draining or filling of wetlands 
        associated with a new public transportation project in a greater 
        than 80 percent area, and for projects expanded solely for 
        additional traffic capacity, public transportation authorities, 
        other than the state department of transportation, may purchase 
        credits from the state wetland bank established with proceeds 
        from Laws 1994, chapter 643, section 26, subdivision 3, 
        paragraph (c).  Wetland banking credits may be purchased at the 
        least of the following, but in no case shall the purchase price 
        be less than $400 per acre:  (1) the cost to the state to 
        establish the credits; (2) the average estimated market value of 
        agricultural land in the township where the road project is 
        located, as determined by the commissioner of revenue; or (3) 
        the average value of the land in the immediate vicinity of the 
        road project as determined by the county assessor.  Public 
        transportation authorities in a less than 80 percent area may 
        purchase credits from the state board at the cost to the state 
        board to establish credits. 
           (l) A replacement plan for wetlands is not required for 
        individual projects that result in the filling or draining of 
        wetlands for the repair, rehabilitation, reconstruction, or 
        replacement of a currently serviceable existing state, city, 
        county, or town public road necessary, as determined by the 
        public transportation authority, to meet state or federal design 
        or safety standards or requirements, excluding new roads or 
        roads expanded solely for additional traffic capacity lanes.  
        This paragraph only applies to authorities for public 
        transportation projects that: 
           (1) minimize the amount of wetland filling or draining 
        associated with the project and consider mitigating important 
        site-specific wetland functions on-site; 
           (2) except as provided in clause (3), submit 
        project-specific reports to the board, the technical evaluation 
        panel, the commissioner of natural resources, and members of the 
        public requesting a copy at least 30 days prior to construction 
        that indicate the location, amount, and type of wetlands to be 
        filled or drained by the project or, alternatively, convene an 
        annual meeting of the parties required to receive notice to 
        review projects to be commenced during the upcoming year; and 
           (3) for minor and emergency maintenance work impacting less 
        than 10,000 square feet, submit project-specific reports, within 
        30 days of commencing the activity, to the board that indicate 
        the location, amount, and type of wetlands that have been filled 
        or drained. 
           Those required to receive notice of public transportation 
        projects may appeal minimization, delineation, and on-site 
        mitigation decisions made by the public transportation authority 
        to the board according to the provisions of section 103G.2242, 
        subdivision 9.  The technical evaluation panel shall review 
        minimization and delineation decisions made by the public 
        transportation authority and provide recommendations regarding 
        on-site mitigation if requested to do so by the local government 
        unit, a contiguous landowner, or a member of the technical 
        evaluation panel. 
           Except for state public transportation projects, for which 
        the state department of transportation is responsible, the board 
        must replace the wetlands, and wetland areas of public waters if 
        authorized by the commissioner or a delegated authority, drained 
        or filled by public transportation projects on existing roads. 
           Public transportation authorities at their discretion may 
        deviate from federal and state design standards on existing road 
        projects when practical and reasonable to avoid wetland filling 
        or draining, provided that public safety is not unreasonably 
        compromised.  The local road authority and its officers and 
        employees are exempt from liability for any tort claim for 
        injury to persons or property arising from travel on the highway 
        and related to the deviation from the design standards for 
        construction or reconstruction under this paragraph.  This 
        paragraph does not preclude an action for damages arising from 
        negligence in construction or maintenance on a highway. 
           (m) If a landowner seeks approval of a replacement plan 
        after the proposed project has already affected the wetland, the 
        local government unit may require the landowner to replace the 
        affected wetland at a ratio not to exceed twice the replacement 
        ratio otherwise required. 
           (n) A local government unit may request the board to 
        reclassify a county or watershed on the basis of its percentage 
        of presettlement wetlands remaining.  After receipt of 
        satisfactory documentation from the local government, the board 
        shall change the classification of a county or watershed.  If 
        requested by the local government unit, the board must assist in 
        developing the documentation.  Within 30 days of its action to 
        approve a change of wetland classifications, the board shall 
        publish a notice of the change in the Environmental Quality 
        Board Monitor. 
           (o) One hundred citizens who reside within the jurisdiction 
        of the local government unit may request the local government 
        unit to reclassify a county or watershed on the basis of its 
        percentage of presettlement wetlands remaining.  In support of 
        their petition, the citizens shall provide satisfactory 
        documentation to the local government unit.  The local 
        government unit shall consider the petition and forward the 
        request to the board under paragraph (n) or provide a reason why 
        the petition is denied. 
           Sec. 113.  Minnesota Statutes 2002, section 103G.222, 
        subdivision 3, is amended to read: 
           Subd. 3.  [WETLAND REPLACEMENT SITING.] (a) Siting wetland 
        replacement must follow this priority order: 
           (1) on site or in the same minor watershed as the affected 
        wetland; 
           (2) in the same watershed as the affected wetland; 
           (3) in the same county as the affected wetland; 
           (4) in an adjacent watershed or county to the affected 
        wetland; and 
           (5) statewide, only for wetlands affected in greater than 
        80 percent areas and for public transportation projects, except 
        that wetlands affected in less than 50 percent areas must be 
        replaced in less than 50 percent areas, and wetlands affected in 
        the seven-county metropolitan area must be replaced at a ratio 
        of two to one in:  (i) the affected county or, if no restoration 
        opportunities exist in the county, (ii) in another of the seven 
        metropolitan counties, or (iii) in one of the major watersheds 
        that are wholly or partially within the seven-county 
        metropolitan area county, but at least one to one must be 
        replaced within the seven-county metropolitan area. 
           (b) The exception in paragraph (a), clause (5), does not 
        apply to replacement completed using wetland banking credits 
        established by a person who submitted a complete wetland banking 
        application to a local government unit by April 1, 1996. 
           (c) When reasonable, practicable, and environmentally 
        beneficial replacement opportunities are not available in siting 
        priorities listed in paragraph (a), the applicant may seek 
        opportunities at the next level. 
           (d) For the purposes of this section, "reasonable, 
        practicable, and environmentally beneficial replacement 
        opportunities" are defined as opportunities that: 
           (1) take advantage of naturally occurring 
        hydrogeomorphological conditions and require minimal landscape 
        alteration; 
           (2) have a high likelihood of becoming a functional wetland 
        that will continue in perpetuity; 
           (3) do not adversely affect other habitat types or 
        ecological communities that are important in maintaining the 
        overall biological diversity of the area; and 
           (4) are available and capable of being done after taking 
        into consideration cost, existing technology, and logistics 
        consistent with overall project purposes. 
           (e) Regulatory agencies, local government units, and other 
        entities involved in wetland restoration shall collaborate to 
        identify potential replacement opportunities within their 
        jurisdictional areas. 
           Sec. 114.  Minnesota Statutes 2002, section 103G.2242, is 
        amended by adding a subdivision to read: 
           Subd. 14.  [FEES ESTABLISHED.] 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. 
           Sec. 115.  Minnesota Statutes 2002, section 103G.2242, is 
        amended by adding a subdivision to read: 
           Subd. 15.  [FEES PAID TO BOARD.] All fees established in 
        subdivision 14 must be paid to the board of water and soil 
        resources and credited to the general fund to be used for the 
        purpose of administration of the wetland bank. 
           Sec. 116.  Minnesota Statutes 2002, section 103G.271, 
        subdivision 6, is amended to read: 
           Subd. 6.  [WATER USE PERMIT PROCESSING FEE.] (a) Except as 
        described in paragraphs (b) to (f), a water use permit 
        processing fee must be prescribed by the commissioner in 
        accordance with the following schedule of fees in this 
        subdivision for each water use permit in force at any time 
        during the year.  The schedule is as follows, with the stated 
        fee in each clause applied to the total amount appropriated: 
           (1) 0.05 cents per 1,000 gallons $101 for the first amounts 
        not exceeding 50,000,000 gallons per year; 
           (2) 0.10 cents $3 per 1,000 1,000,000 gallons for amounts 
        greater than 50,000,000 gallons but less than 100,000,000 
        gallons per year; 
           (3) 0.15 cents $3.50 per 1,000 1,000,000 gallons for 
        amounts greater than 100,000,000 gallons but less than 
        150,000,000 gallons per year; 
           (4) 0.20 cents $4 per 1,000 1,000,000 gallons for amounts 
        greater than 150,000,000 gallons but less than 200,000,000 
        gallons per year; 
           (5) 0.25 cents $4.50 per 1,000 1,000,000 gallons for 
        amounts greater than 200,000,000 gallons but less than 
        250,000,000 gallons per year; 
           (6) 0.30 cents $5 per 1,000 1,000,000 gallons for amounts 
        greater than 250,000,000 gallons but less than 300,000,000 
        gallons per year; 
           (7) 0.35 cents $5.50 per 1,000 1,000,000 gallons for 
        amounts greater than 300,000,000 gallons but less than 
        350,000,000 gallons per year; 
           (8) 0.40 cents $6 per 1,000 1,000,000 gallons for amounts 
        greater than 350,000,000 gallons but less than 400,000,000 
        gallons per year; and 
           (9) 0.45 cents $6.50 per 1,000 1,000,000 gallons for 
        amounts greater than 400,000,000 gallons but less than 
        450,000,000 gallons per year.; 
           (10) $7 per 1,000,000 gallons for amounts greater than 
        450,000,000 gallons but less than 500,000,000 gallons per year; 
        and 
           (11) $7.50 per 1,000,000 gallons for amounts greater than 
        500,000,000 gallons per year. 
           (b) For once-through cooling systems, a water use 
        processing fee must be prescribed by the commissioner in 
        accordance with the following schedule of fees for each water 
        use permit in force at any time during the year: 
           (1) for nonprofit corporations and school districts, 15.0 
        cents $150 per 1,000 1,000,000 gallons; and 
           (2) for all other users, 20 cents $200 per 1,000 1,000,000 
        gallons. 
           (c) The fee is payable based on the amount of water 
        appropriated during the year and, except as provided in 
        paragraph (f), the minimum fee is $50 $100.  
           (d) For water use processing fees other than once-through 
        cooling systems:  
           (1) the fee for a city of the first class may not exceed 
        $175,000 $250,000 per year; 
           (2) the fee for other entities for any permitted use may 
        not exceed: 
           (i) $35,000 $50,000 per year for an entity holding three or 
        fewer permits; 
           (ii) $50,000 $75,000 per year for an entity holding four or 
        five permits; 
           (iii) $175,000 $250,000 per year for an entity holding more 
        than five permits; 
           (3) the fee for agricultural irrigation may not exceed $750 
        per year; 
           (4) the fee for a municipality that furnishes electric 
        service and cogenerates steam for home heating may not exceed 
        $10,000 for its permit for water use related to the cogeneration 
        of electricity and steam; and 
           (5) no fee is required for a project involving the 
        appropriation of surface water to prevent flood damage or to 
        remove flood waters during a period of flooding, as determined 
        by the commissioner.  
           (e) Failure to pay the fee is sufficient cause for revoking 
        a permit.  A penalty of two percent per month calculated from 
        the original due date must be imposed on the unpaid balance of 
        fees remaining 30 days after the sending of a second notice of 
        fees due.  A fee may not be imposed on an agency, as defined in 
        section 16B.01, subdivision 2, or federal governmental agency 
        holding a water appropriation permit. 
           (f) The minimum water use processing fee for a permit 
        issued for irrigation of agricultural land is $10 $20 for years 
        in which: 
           (1) there is no appropriation of water under the permit; or 
           (2) the permit is suspended for more than seven consecutive 
        days between May 1 and October 1. 
           Sec. 117.  Minnesota Statutes 2002, section 103G.271, 
        subdivision 6a, is amended to read: 
           Subd. 6a.  [PAYMENT OF FEES FOR PAST UNPERMITTED 
        APPROPRIATIONS.] An entity that appropriates water without a 
        required permit under subdivision 1 must pay the applicable 
        water use permit processing fee specified in subdivision 6 for 
        the period during which the unpermitted appropriation occurred.  
        The fees for unpermitted appropriations are required for the 
        previous seven calendar years after being notified of the need 
        for a permit.  This fee is in addition to any other fee or 
        penalty assessed. 
           Sec. 118.  Minnesota Statutes 2002, section 103G.611, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIREMENT REQUIREMENTS.] (a) The fee for 
        a permit to operate an aeration system on public waters during 
        periods of ice cover is $250.  The commissioner may waive the 
        fee for aeration systems that are assisting efforts to maintain 
        angling opportunities through the prevention of winterkill.  To 
        be eligible for the fee waiver, the lake being aerated must have 
        public access and aeration must be identified as a desirable 
        management tool in a plan approved by the commissioner.  
        Operation of the aeration system in a manner not consistent with 
        the approved plan represents justification for rescinding the 
        fee waiver.  The fee may not be charged to the state or a 
        federal governmental agency applying for a permit.  The money 
        received for permits under this subdivision must be deposited in 
        the treasury and credited to the game and fish fund. 
           (b) A person operating an aeration system on public waters 
        under a water aeration permit must comply with the sign posting 
        requirements of this section and applicable rules of the 
        commissioner.  
           Sec. 119.  Minnesota Statutes 2002, section 103G.615, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FEES.] (a) The commissioner shall establish a 
        fee schedule for permits to harvest aquatic plants other than 
        wild rice, by order, after holding a public hearing.  The fees 
        may not exceed $200 $750 per permit based upon the cost of 
        receiving, processing, analyzing, and issuing the permit, and 
        additional costs incurred after the application to inspect and 
        monitor the activities authorized by the permit, and enforce 
        aquatic plant management rules and permit requirements. 
           (b) The fee for a permit for chemical treatment the 
        destruction of rooted aquatic vegetation may not exceed $20 is 
        $35 for each contiguous parcel of shoreline owned by an owner.  
        This fee may not be charged for permits issued in connection 
        with lakewide Eurasian water milfoil control programs. 
           (c) A fee may not be charged to the state or a federal 
        governmental agency applying for a permit. 
           (d) The money received for the permits under this 
        subdivision shall be deposited in the treasury and credited to 
        the game and fish fund.  
           Sec. 120.  Minnesota Statutes 2002, section 115.03, is 
        amended by adding a subdivision to read: 
           Subd. 5b.  [STORM WATER PERMITS; COMPLIANCE WITH 
        NONDEGRADATION AND MITIGATION REQUIREMENTS.] (a) During the 
        period in which this subdivision is in effect, all point source 
        storm water discharges that are subject to and in compliance 
        with an individual or general storm water permit issued by the 
        pollution control agency under the National Pollution Discharge 
        Elimination System are considered to be in compliance with the 
        nondegradation and mitigation requirements of agency water 
        quality rules. 
           (b) This subdivision is repealed on the earlier of July 1, 
        2007, or the effective date of rules adopted by the pollution 
        control agency that provide specific mechanisms or criteria to 
        determine whether point source storm water discharges comply 
        with the nondegradation and mitigation requirements of agency 
        water quality rules. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 121.  Minnesota Statutes 2002, section 115.03, is 
        amended by adding a subdivision to read: 
           Subd. 5c.  [REGULATION OF STORM WATER DISCHARGES.] (a) The 
        agency may issue a general permit to any category or subcategory 
        of point source storm water discharges that it deems 
        administratively reasonable and efficient without making any 
        findings under agency rules.  Nothing in this subdivision 
        precludes the agency from requiring an individual permit for a 
        point source storm water discharge if the agency finds that it 
        is appropriate under applicable legal or regulatory standards. 
           (b) Pursuant to this paragraph, the legislature authorizes 
        the agency to adopt and enforce rules regulating point source 
        storm water discharges.  No further legislative approval is 
        required under any other legal or statutory provision whether 
        enacted before or after the enactment of this section. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 122.  [115.425] [NONINGESTED SOURCE PHOSPHORUS 
        REDUCTION GOAL.] 
           The state goal for reducing phosphorus from noningested 
        sources entering municipal wastewater treatment systems is at 
        least a 50 percent reduction based on the timeline for reduction 
        developed by the commissioner under section 166, and a 
        reasonable estimate of the amount of phosphorus from noningested 
        sources entering municipal wastewater treatment systems in 
        calendar year 2003. 
           Sec. 123.  Minnesota Statutes 2002, section 115.55, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
        subdivision apply to this section and section sections 115.55 to 
        115.56. 
           (b) "Advisory committee" means the advisory committee on 
        individual sewage treatment systems established under the 
        individual sewage treatment system rules.  The advisory 
        committee must be appointed to ensure geographic representation 
        of the state and include elected public officials. 
           (c) "Applicable requirements" means: 
           (1) local ordinances that comply with the individual sewage 
        treatment system rules, as required in subdivision 2; or 
           (2) in areas not subject to the ordinances described in 
        clause (1), the individual sewage treatment system rules. 
           (d) "City" means a statutory or home rule charter city. 
           (e) "Commissioner" means the commissioner of the pollution 
        control agency. 
           (f) "Dwelling" means a building or place used or intended 
        to be used by human occupants as a single-family or two-family 
        unit. 
           (g) "Individual sewage treatment system" or "system" means 
        a sewage treatment system, or part thereof, serving a dwelling, 
        other establishment, or group thereof, that uses subsurface soil 
        treatment and disposal. 
           (h) "Individual sewage treatment system professional" means 
        an inspector, installer, site evaluator or designer, or pumper. 
           (i) "Individual sewage treatment system rules" means rules 
        adopted by the agency that establish minimum standards and 
        criteria for the design, location, installation, use, and 
        maintenance of individual sewage treatment systems. 
           (j) "Inspector" means a person who inspects individual 
        sewage treatment systems for compliance with the applicable 
        requirements. 
           (k) "Installer" means a person who constructs or repairs 
        individual sewage treatment systems. 
           (l) "Local unit of government" means a township, city, or 
        county. 
           (m) "Pumper" means a person who maintains components of 
        individual sewage treatment systems including, but not limited 
        to, septic, aerobic, and holding tanks. 
           (n) "Seasonal dwelling" means a dwelling that is occupied 
        or used for less than 180 days per year and less than 120 
        consecutive days. 
           (o) "Septic system tank" means any covered receptacle 
        designed, constructed, and installed as part of an individual 
        sewage treatment system. 
           (p) "Site evaluator or designer" means a person who: 
           (1) investigates soils and site characteristics to 
        determine suitability, limitations, and sizing requirements; and 
           (2) designs individual sewage treatment systems. 
           Sec. 124.  [115.551] [TANK FEE.] 
           An installer shall pay a fee of $25 for each septic system 
        tank installed in the previous calendar year.  The fees required 
        under this section must be paid to the commissioner by January 
        30 of each year.  The revenue derived from the fee imposed under 
        this section shall be deposited in the environmental fund and is 
        exempt from section 16A.1285. 
           Sec. 125.  Minnesota Statutes 2002, section 115A.54, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [TERMINATION OF OBLIGATIONS; GOOD-FAITH 
        EFFORT.] Notwithstanding the provisions of section 16A.695, the 
        director may terminate the obligations of a grant or loan 
        recipient under this section, if the director finds that the 
        recipient has made a good-faith effort to exhaust all options in 
        trying to comply with the terms and conditions of the grant or 
        loan.  In lieu of declaring a default on a grant or a loan under 
        this section, the director may identify additional measures a 
        recipient should take in order to meet the good-faith test 
        required for terminating the recipient's obligations under this 
        section.  By December 15 of each year, the director shall report 
        to the legislature the defaults and terminations the director 
        has ordered in the previous year, if any.  No decision on 
        termination under this section is effective until the end of the 
        legislative session following the director's report. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 126.  Minnesota Statutes 2002, section 115A.545, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PROCESSING PAYMENT.] (a) The director shall pay 
        counties a processing payment for each ton of mixed municipal 
        solid waste that is generated in the county and processed at a 
        resource recovery facility.  The processing payment shall be $5 
        for each ton of mixed municipal solid waste processed.  
           (b) The director shall also pay a processing payment to a 
        county that does not qualify under paragraph (a) that 
        constructed a processing facility and that either: 
           (1) contracts for waste generated in the county to be 
        received at a facility in that county; or 
           (2) has a comprehensive solid waste management plan 
        approved by the director under section 115A.46 that demonstrates 
        the intention of the county to make the processing facility 
        operational. 
           The processing payment shall be $5 for each ton of mixed 
        municipal waste generated in the county and delivered under 
        contract with the county. 
           (c) By the last day of October, January, April, and July, 
        each county claiming the processing payment shall file a claim 
        for payment with the director for the three previous months 
        certifying the number of tons of mixed municipal solid waste 
        that were generated in the county and processed at a resource 
        recovery facility.  The director shall pay the processing 
        payments by November 15, February 15, May 15, and August 15 each 
        year.  
           (d) (c) If the total amount for which all counties are 
        eligible in a quarter exceeds the amount available for payment, 
        the director shall make the payments on a pro rata basis.  
           (e) (d) All of the money received by a county under 
        paragraph (a) must be used to lower the tipping fee for waste to 
        be processed at a resource recovery facility. 
           (f) Amounts received by a county under: 
           (1) paragraph (b), clause (1), must be used to lower the 
        tipping fee for waste received at a waste management facility 
        within the county for waste received under contract with the 
        county at a facility in the county; or 
           (2) paragraph (b), clause (2), must be used to assist in 
        making the county's processing facility operational. 
           Sec. 127.  Minnesota Statutes 2002, section 115A.908, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DEPOSIT OF REVENUE.] (a) From July 1, 2003, 
        through June 30, 2007, revenue collected shall be credited to 
        the general fund. 
           (b) After June 30, 2007, revenue collected shall be 
        credited to the motor vehicle transfer account in the 
        environmental fund.  As cash flow permits, the commissioner of 
        finance must transfer (1) $3,200,000 each fiscal year from the 
        motor vehicle transfer account to the environmental response, 
        compensation, and compliance account established in section 
        115B.20; and (2) $1,200,000 each fiscal year from the motor 
        vehicle transfer account to the general fund. 
           Sec. 128.  Minnesota Statutes 2002, section 115A.919, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FEE.] (a) A county may impose a fee, by 
        cubic yard of waste or its equivalent, on operators of 
        facilities for the disposal of mixed municipal solid waste or 
        construction debris located within the county.  The revenue from 
        the fees shall be credited to the county general fund and shall 
        be used only for landfill abatement purposes, or costs of 
        closure, postclosure care, and response actions or for purposes 
        of mitigating and compensating for the local risks, costs, and 
        other adverse effects of facilities.  The interest generated 
        from fees imposed under this subdivision may be credited to the 
        county general fund for use by a county for other purposes. 
           (b) Fees for construction debris facilities may not exceed 
        50 cents per cubic yard.  Revenues from the fees must offset any 
        financial assurances required by the county for a construction 
        debris facility.  The maximum revenue that may be collected for 
        a construction debris facility must be determined by multiplying 
        the total permitted capacity of the facility by 15 cents per 
        cubic yard.  Once the maximum revenue has been collected for a 
        facility, the fee may no longer be imposed.  The limitation on 
        the fees in this paragraph and in section 115A.921, subdivision 
        2, are not intended to alter the liability of the facility 
        operator or the authority of the agency to impose financial 
        assurance requirements. 
           Sec. 129.  [115A.9565] [CATHODE-RAY TUBE PROHIBITION.] 
           Effective July 1, 2005, a person may not place in mixed 
        municipal solid waste an electronic product containing a 
        cathode-ray tube. 
           Sec. 130.  Minnesota Statutes 2002, section 115C.02, 
        subdivision 14, is amended to read: 
           Subd. 14.  [TANK.] "Tank" means any one or a combination of 
        containers, vessels, and enclosures, including structures and 
        appurtenances connected to them, that is, or has been, used to 
        contain or, dispense, store, or transport petroleum.  
           "Tank" does not include: 
           (1) a mobile storage tank used to transport petroleum from 
        one location to another, except a mobile storage tank with a 
        capacity of 500 gallons or less used only to transport home 
        heating fuel on private property; or 
           (2) pipeline facilities, including gathering lines, 
        regulated under the Natural Gas Pipeline Safety Act of 1968, 
        United States Code, title 49, chapter 24, or the Hazardous 
        Liquid Pipeline Safety Act of 1979, United States Code, title 
        49, chapter 29. 
           Sec. 131.  Minnesota Statutes 2002, section 115C.08, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EXPENDITURES.] (a) Money in the fund may only be 
        spent: 
           (1) to administer the petroleum tank release cleanup 
        program established in this chapter; 
           (2) for agency administrative costs under sections 116.46 
        to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
        action taken by the agency under section 115C.03, including 
        investigations; 
           (3) for costs of recovering expenses of corrective actions 
        under section 115C.04; 
           (4) for training, certification, and rulemaking under 
        sections 116.46 to 116.50; 
           (5) for agency administrative costs of enforcing rules 
        governing the construction, installation, operation, and closure 
        of aboveground and underground petroleum storage tanks; 
           (6) for reimbursement of the environmental response, 
        compensation, and compliance account under subdivision 5 and 
        section 115B.26, subdivision 4; 
           (7) for administrative and staff costs as set by the board 
        to administer the petroleum tank release program established in 
        this chapter; 
           (8) for corrective action performance audits under section 
        115C.093; and 
           (9) for contamination cleanup grants, as provided in 
        paragraph (c); and 
           (10) to assess and remove abandoned underground storage 
        tanks under section 115C.094 and, if a release is discovered, to 
        pay for the specific consultant and contractor services costs 
        necessary to complete the tank removal project, including, but 
        not limited to, excavation soil sampling, groundwater sampling, 
        soil disposal, and completion of an excavation report. 
           (b) Except as provided in paragraph (c), money in the fund 
        is appropriated to the board to make reimbursements or payments 
        under this section. 
           (c) $6,200,000 is annually appropriated from the fund to 
        the commissioner of trade and economic development for 
        contamination cleanup grants under section 116J.554.  Of this 
        amount, the commissioner may spend up to $120,000 annually for 
        administration of the contamination cleanup grant program.  The 
        appropriation does not cancel and is available until expended.  
        The appropriation shall not be withdrawn from the fund nor the 
        fund balance reduced until the funds are requested by the 
        commissioner of trade and economic development.  The 
        commissioner shall schedule requests for withdrawals from the 
        fund to minimize the necessity to impose the fee authorized by 
        subdivision 2.  Unless otherwise provided, the appropriation in 
        this paragraph may be used for: 
           (1) project costs at a qualifying site if a portion of the 
        cleanup costs are attributable to petroleum contamination; and 
           (2) the costs of performing contamination investigation if 
        there is a reasonable basis to suspect the contamination is 
        attributable to petroleum. 
           Sec. 132.  Minnesota Statutes 2002, section 115C.09, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REIMBURSEMENTS; SUBROGATION; APPROPRIATION.] (a) 
        The board shall reimburse an eligible applicant from the fund 
        for 90 percent of the total reimbursable costs incurred at the 
        site, except that the board may reimburse an eligible applicant 
        from the fund for greater than 90 percent of the total 
        reimbursable costs, if the applicant previously qualified for a 
        higher reimbursement rate.  For costs associated with a release 
        from a tank in transport, the board may reimburse 90 percent of 
        costs over $10,000, with the maximum reimbursement not to exceed 
        $100,000.  
           Not more than $1,000,000 may be reimbursed for costs 
        associated with a single release, regardless of the number of 
        persons eligible for reimbursement, and not more than $2,000,000 
        may be reimbursed for costs associated with a single tank 
        facility. 
           (b) A reimbursement may not be made from the fund under 
        this chapter until the board has determined that the costs for 
        which reimbursement is requested were actually incurred and were 
        reasonable. 
           (c) When an applicant has obtained responsible competitive 
        bids or proposals according to rules promulgated under this 
        chapter prior to June 1, 1995, the eligible costs for the tasks, 
        procedures, services, materials, equipment, and tests of the low 
        bid or proposal are presumed to be reasonable by the board, 
        unless the costs of the low bid or proposal are substantially in 
        excess of the average costs charged for similar tasks, 
        procedures, services, materials, equipment, and tests in the 
        same geographical area during the same time period. 
           (d) When an applicant has obtained a minimum of two 
        responsible competitive bids or proposals on forms prescribed by 
        the board and where the rules promulgated under this chapter 
        after June 1, 1995, designate maximum costs for specific tasks, 
        procedures, services, materials, equipment and tests, the 
        eligible costs of the low bid or proposal are deemed reasonable 
        if the costs are at or below the maximums set forth in the rules.
           (e) Costs incurred for change orders executed as prescribed 
        in rules promulgated under this chapter after June 1, 1995, are 
        presumed reasonable if the costs are at or below the maximums 
        set forth in the rules, unless the costs in the change order are 
        above those in the original bid or proposal or are 
        unsubstantiated and inconsistent with the process and standards 
        required by the rules. 
           (f) A reimbursement may not be made from the fund in 
        response to either an initial or supplemental application for 
        costs incurred after June 4, 1987, that are payable under an 
        applicable insurance policy, except that if the board finds that 
        the applicant has made reasonable efforts to collect from an 
        insurer and failed, the board shall reimburse the applicant. 
           (g) If the board reimburses an applicant for costs for 
        which the applicant has insurance coverage, the board is 
        subrogated to the rights of the applicant with respect to that 
        insurance coverage, to the extent of the reimbursement by the 
        board.  The board may request the attorney general to bring an 
        action in district court against the insurer to enforce the 
        board's subrogation rights.  Acceptance by an applicant of 
        reimbursement constitutes an assignment by the applicant to the 
        board of any rights of the applicant with respect to any 
        insurance coverage applicable to the costs that are reimbursed.  
        Notwithstanding this paragraph, the board may instead request a 
        return of the reimbursement under subdivision 5 and may employ 
        against the applicant the remedies provided in that subdivision, 
        except where the board has knowingly provided reimbursement 
        because the applicant was denied coverage by the insurer. 
           (h) Money in the fund is appropriated to the board to make 
        reimbursements under this chapter.  A reimbursement to a state 
        agency must be credited to the appropriation account or accounts 
        from which the reimbursed costs were paid. 
           (i) The board may reduce the amount of reimbursement to be 
        made under this chapter if it finds that the applicant has not 
        complied with a provision of this chapter, a rule or order 
        issued under this chapter, or one or more of the following 
        requirements: 
           (1) the agency was given notice of the release as required 
        by section 115.061; 
           (2) the applicant, to the extent possible, fully cooperated 
        with the agency in responding to the release; 
           (3) the state rules applicable after December 22, 1993, to 
        operating an underground storage tank and appurtenances without 
        leak detection; 
           (4) the state rules applicable after December 22, 1998, to 
        operating an underground storage tank and appurtenances without 
        corrosion protection or spill and overfill protection; and 
           (5) the state rule applicable after November 1, 1998, to 
        operating an aboveground tank without a dike or other structure 
        that would contain a spill at the aboveground tank site. 
           (j) The reimbursement may be reduced as much as 100 percent 
        for failure by the applicant to comply with the requirements in 
        paragraph (i), clauses (1) to (5).  In determining the amount of 
        the reimbursement reduction, the board shall consider: 
           (1) the reasonable determination by the agency that the 
        noncompliance poses a threat to the environment; 
           (2) whether the noncompliance was negligent, knowing, or 
        willful; 
           (3) the deterrent effect of the award reduction on other 
        tank owners and operators; 
           (4) the amount of reimbursement reduction recommended by 
        the commissioner; and 
           (5) the documentation of noncompliance provided by the 
        commissioner. 
           (k) An applicant may assign the right to receive 
        reimbursement to request that the board issue a multiparty check 
        that includes each lender who advanced funds to pay the costs of 
        the corrective action or to each contractor or consultant who 
        provided corrective action services.  An assignment This request 
        must be made by filing with the board a document, in a form 
        prescribed by the board, indicating the identity of the 
        applicant, the identity of the assignee lender, contractor, or 
        consultant, the dollar amount of the assignment, and the 
        location of the corrective action.  An assignment signed by the 
        applicant is valid unless terminated by filing a termination 
        with the board, in a form prescribed by the board, which must 
        include the written concurrence of the assignee.  The board 
        shall maintain an index of assignments filed under this 
        paragraph.  The board shall pay the reimbursement to the 
        applicant and to one or more assignees by a multiparty 
        check.  The applicant must submit a request for the issuance of 
        a multiparty check for each application submitted to the board.  
        Payment under this paragraph does not constitute the assignment 
        of the applicant's right to reimbursement to the consultant, 
        contractor, or lender.  The board has no liability to an 
        applicant for a payment under an assignment meeting issued as a 
        multiparty check that meets the requirements of this paragraph. 
           Sec. 133.  Minnesota Statutes 2002, section 115C.09, is 
        amended by adding a subdivision to read: 
           Subd. 3i.  [REIMBURSEMENT; NATURAL DISASTER AREA.] (a) As 
        used in this subdivision, "natural disaster area" means a 
        geographical area that has been declared a disaster by the 
        governor and President of the United States. 
           (b) Notwithstanding subdivision 3, paragraph (a), the board 
        may reimburse: 
           (1) up to 50 percent of an applicant's prenatural-disaster 
        estimated building market value as recorded by the county 
        assessor; or 
           (2) if the applicant conveys title of the real estate to 
        local or state government, up to 50 percent of the 
        prenatural-disaster estimated total market value, not to exceed 
        one acre, as recorded by the county assessor. 
           (c) Paragraph (b) applies only if the applicant documents 
        that: 
           (1) the natural disaster area has been declared eligible 
        for state or federal emergency aid; 
           (2) the building is declared uninhabitable by the 
        commissioner because of damage caused by the release of 
        petroleum from a petroleum storage tank; and 
           (3) the applicant has submitted a claim under any 
        applicable insurance policies and has been denied benefits under 
        those policies. 
           (d) In determining the percentage for reimbursement, the 
        board shall consider the applicant's eligibility to receive 
        other state or federal financial assistance and determine a 
        lesser reimbursement rate to the extent that the applicant is 
        eligible to receive financial assistance that exceeds 50 percent 
        of the applicant's prenatural-disaster estimated building market 
        value or total market value. 
           Sec. 134.  Minnesota Statutes 2002, section 115C.09, is 
        amended by adding a subdivision to read: 
           Subd. 3j.  [RETAIL LOCATIONS AND TRANSPORT VEHICLES.] (a) 
        As used in this subdivision, "retail location" means a facility 
        located in the metropolitan area as defined in section 473.121, 
        subdivision 2, where gasoline is offered for sale to the general 
        public for use in automobiles and trucks.  "Transport vehicle" 
        means a liquid fuel cargo tank used to deliver gasoline into 
        underground storage tanks during 2002 at a retail location. 
           (b) Notwithstanding any other provision in this chapter, 
        and any rules adopted under this chapter, the board shall 
        reimburse 90 percent of an applicant's cost for retrofits of 
        retail locations and transport vehicles completed between 
        January 1, 2001, and January 1, 2006, to comply with section 
        116.49, subdivisions 3 and 4, provided that the board determines 
        the costs were incurred and reasonable.  The reimbursement may 
        not exceed $3,000 per retail location and $3,000 per transport 
        vehicle. 
           Sec. 135.  [115C.094] [ABANDONED UNDERGROUND STORAGE 
        TANKS.] 
           (a) As used in this section, an abandoned underground 
        petroleum storage tank means an underground petroleum storage 
        tank that was: 
           (1) taken out of service prior to December 22, 1988; or 
           (2) taken out of service on or after December 22, 1988, if 
        the current property owner did not know of the existence of the 
        underground petroleum storage tank and could not have reasonably 
        been expected to have known of the tank's existence at the time 
        the owner first acquired right, title, or interest in the tank. 
           (b) The board may contract for: 
           (1) a statewide assessment in order to determine the 
        quantity, location, cost, and feasibility of removing abandoned 
        underground petroleum storage tanks; 
           (2) the removal of an abandoned underground petroleum 
        storage tank; and 
           (3) the removal and disposal of petroleum-contaminated soil 
        if the removal is required by the commissioner at the time of 
        tank removal. 
           (c) Before the board may contract for removal of an 
        abandoned petroleum storage tank, the tank owner must provide 
        the board with written access to the property and release the 
        board from any potential liability for the work performed. 
           (d) Money in the fund is appropriated to the board for the 
        purposes of this section. 
           Sec. 136.  Minnesota Statutes 2002, section 115C.11, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REGISTRATION.] (a) All consultants and 
        contractors who perform corrective action services must register 
        with the board.  In order to register, consultants must meet and 
        demonstrate compliance with the following criteria: 
           (1) provide a signed statement to the board verifying 
        agreement to abide by this chapter and the rules adopted under 
        it and to include a signed statement with each claim that all 
        costs claimed by the consultant are a true and accurate account 
        of services performed; 
           (2) provide a signed statement that the consultant shall 
        make available for inspection any records requested by the board 
        for field or financial audits under the scope of this chapter; 
           (3) certify knowledge of the requirements of this chapter 
        and the rules adopted under it; 
           (4) obtain and maintain professional liability coverage, 
        including pollution impairment liability; and 
           (5) agree to submit to the board a certificate or 
        certificates verifying the existence of the required insurance 
        coverage. 
           (b) The board must maintain a list of all registered 
        consultants and a list of all registered contractors. 
           (c) All corrective action services must be performed by 
        registered consultants and contractors. 
           (d) Reimbursement for corrective action services performed 
        by an unregistered consultant or contractor is subject to 
        reduction under section 115C.09, subdivision 3, paragraph (i). 
           (e) Corrective action services performed by a consultant or 
        contractor prior to being removed from the registration list may 
        be reimbursed without reduction by the board. 
           (f) If the information in an application for registration 
        becomes inaccurate or incomplete in any material respect, the 
        registered consultant or contractor must promptly file a 
        corrected application with the board. 
           (g) Registration is effective 30 days after a complete 
        application is received by the board.  The board may reimburse 
        without reduction the cost of work performed by an unregistered 
        contractor if the contractor performed the work within 60 days 
        of the effective date of registration. 
           (h) Registration for consultants under this section remains 
        in force until the expiration date of the professional liability 
        coverage, including pollution impairment liability, required 
        under paragraph (a), clause (4), or until voluntarily terminated 
        by the registrant, or until suspended or revoked by the 
        commissioner of commerce.  Registration for contractors under 
        this section expires each year on the anniversary of the 
        effective date of the contractor's most recent registration and 
        must be renewed on or before expiration.  Prior to its annual 
        expiration, a registration remains in force until voluntarily 
        terminated by the registrant, or until suspended or revoked by 
        the commissioner of commerce.  All registrants must comply with 
        registration criteria under this section. 
           (i) The board may deny a consultant or contractor 
        registration or request for renewal under this section if the 
        consultant or contractor: 
           (1) does not intend to or is not in good faith carrying on 
        the business of an environmental consultant or contractor; 
           (2) has filed an application for registration that is 
        incomplete in any material respect or contains any statement 
        which, in light of the circumstances under which it is made, 
        contains any misrepresentation, or is false, misleading, or 
        fraudulent; 
           (3) has engaged in any fraudulent, coercive, deceptive, or 
        dishonest act or practice whether or not the act or practice 
        involves the business of environmental consulting or 
        contracting; 
           (4) has forged another's name to any document whether or 
        not the document relates to a document approved by the board; 
           (5) has plead guilty, with or without explicitly admitting 
        guilt; plead nolo contendere; or been convicted of a felony, 
        gross misdemeanor, or misdemeanor involving moral turpitude, 
        including, but not limited to, assault, harassment, or similar 
        conduct; 
           (6) has been subject to disciplinary action in another 
        state or jurisdiction; or 
           (7) has not paid subcontractors hired by the consultant or 
        contractor after they have been paid in full by the applicant. 
           Sec. 137.  Minnesota Statutes 2002, section 115C.13, is 
        amended to read: 
           115C.13 [REPEALER.] 
           Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 
        115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 
        115C.093, 115C.094, 115C.10, 115C.11, 115C.111, 115C.112, 
        115C.113, 115C.12, and 115C.13, are repealed effective June 30, 
        2005 2007. 
           Sec. 138.  Minnesota Statutes 2002, section 116.073, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY TO ISSUE.] (a) Pollution control 
        agency staff designated by the commissioner and department of 
        natural resources conservation officers may issue citations to a 
        person who: 
           (1) disposes of solid waste as defined in section 116.06, 
        subdivision 22, at a location not authorized by law for the 
        disposal of solid waste without permission of the owner of the 
        property; 
           (2) fails to report or recover discharges as required under 
        section 115.061; or 
           (3) fails to take discharge preventive or preparedness 
        measures required under chapter 115E; or 
           (4) fails to install or use vapor recovery equipment during 
        the transfer of gasoline from a transport delivery vehicle to an 
        underground storage tank as required in section 116.49, 
        subdivisions 3 and 4. 
           (b) In addition, pollution control agency staff designated 
        by the commissioner may issue citations to owners and operators 
        of facilities dispensing petroleum products who violate sections 
        116.46 to 116.50 and Minnesota Rules, chapters 7150 and 7151 and 
        parts 7001.4200 to 7001.4300.  A citation issued under this 
        subdivision must include a requirement that the person cited 
        remove and properly dispose of or otherwise manage the waste or 
        discharged oil or hazardous substance, reimburse any government 
        agency that has disposed of the waste or discharged oil or 
        hazardous substance and contaminated debris for the reasonable 
        costs of disposal, or correct any storage tank violations. 
           (c) Until June 1, 2004, citations for violation of sections 
        115E.045 and 116.46 to 116.50 and Minnesota Rules, chapters 7150 
        and 7151, may be issued only after the owners and operators have 
        had a 90-day period to correct violations stated in writing by 
        pollution control agency staff, unless there is a discharge 
        associated with the violation or the violation is of Minnesota 
        Rules, part 7151.6400, subpart 1, item B, or 7151.6500. 
           Sec. 139.  Minnesota Statutes 2002, section 116.073, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PENALTY AMOUNT.] The citation must impose the 
        following penalty amounts: 
           (1) $100 per major appliance, as defined in section 
        115A.03, subdivision 17a, up to a maximum of $2,000; 
           (2) $25 per waste tire, as defined in section 115A.90, 
        subdivision 11, up to a maximum of $2,000; 
           (3) $25 per lead acid battery governed by section 115A.915, 
        up to a maximum of $2,000; 
           (4) $1 per pound of other solid waste or $20 per cubic foot 
        up to a maximum of $2,000; 
           (5) up to $200 for any amount of waste that escapes from a 
        vehicle used for the transportation of solid waste if, after 
        receiving actual notice that waste has escaped the vehicle, the 
        person or company transporting the waste fails to immediately 
        collect the waste; 
           (6) $50 per violation of rules adopted under section 
        116.49, relating to underground storage tank system design, 
        construction, installation, and notification requirements, up to 
        a maximum of $2,000; 
           (7) $250 per violation of rules adopted under section 
        116.49, relating to upgrading of existing underground storage 
        tank systems, up to a maximum of $2,000; 
           (8) $100 per violation of rules adopted under section 
        116.49, relating to underground storage tank system general 
        operating requirements, up to a maximum of $2,000; 
           (9) $250 per violation of rules adopted under section 
        116.49, relating to underground storage tank system release 
        detection requirements, up to a maximum of $2,000; 
           (10) $50 per violation of rules adopted under section 
        116.49, relating to out-of-service underground storage tank 
        systems and closure, up to a maximum of $2,000; 
           (11) $50 per violation of sections 116.48 to 116.491 
        relating to underground storage tank system notification, 
        monitoring, environmental protection, and tank installers 
        training and certification requirements, up to a maximum of 
        $2,000; 
           (12) $25 per gallon of oil or hazardous substance 
        discharged which is not reported or recovered under section 
        115.061, up to a maximum of $2,000; 
           (13) $1 per gallon of oil or hazardous substance being 
        stored, transported, or otherwise handled without the prevention 
        or preparedness measures required under chapter 115E, up to a 
        maximum of $2,000; and 
           (14) $250 per violation of Minnesota Rules, parts 7001.4200 
        to 7001.4300 or chapter 7151, related to aboveground storage 
        tank systems, up to a maximum of $2,000; and 
           (15) $250 per delivery made in violation of section 116.49, 
        subdivision 3 or 4, levied against: 
           (i) the retail location if vapor recovery equipment is not 
        installed or maintained properly; 
           (ii) the carrier if the transport delivery vehicle is not 
        equipped with vapor recovery equipment; or 
           (iii) the driver for failure to use supplied vapor recovery 
        equipment.  
           Sec. 140.  Minnesota Statutes 2002, section 116.46, is 
        amended by adding a subdivision to read: 
           Subd. 7a.  [RETAIL LOCATION.] "Retail location" means a 
        facility located in the metropolitan area as defined in section 
        473.121, subdivision 2, where gasoline is offered for sale to 
        the general public for use in automobiles and trucks. 
           Sec. 141.  Minnesota Statutes 2002, section 116.46, is 
        amended by adding a subdivision to read: 
           Subd. 7b.  [TRANSPORT DELIVERY VEHICLE.] "Transport 
        delivery vehicle" means a liquid fuel cargo tank used to deliver 
        gasoline into underground storage tanks. 
           Sec. 142.  Minnesota Statutes 2002, section 116.46, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [VAPOR RECOVERY SYSTEM.] "Vapor recovery system" 
        means a system which transfers vapors from underground storage 
        tanks during the filling operation to the storage compartment of 
        the transport vehicle delivering gasoline. 
           Sec. 143.  Minnesota Statutes 2002, section 116.49, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [VAPOR RECOVERY SYSTEM.] Every underground 
        gasoline storage tank at a retail location must be fitted with 
        vapor recovery equipment by January 1, 2006.  The equipment must 
        be certified by the manufacturer as capable of collecting 95 
        percent of hydrocarbons emitted during gasoline transfers from a 
        transport delivery vehicle to an underground storage tank.  
        Product delivery and vapor recovery access points must be on the 
        same side of the transport vehicle when the transport vehicle is 
        positioned for delivery into the underground tank.  After 
        January 1, 2006, no gasoline may be delivered to a retail 
        location that is not equipped with a vapor recovery system. 
           Sec. 144.  Minnesota Statutes 2002, section 116.49, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [VAPOR RECOVERY ON TRANSPORTS.] All transport 
        delivery vehicles that deliver gasoline into underground storage 
        tanks in the metropolitan area as defined in section 473.121, 
        subdivision 2, must be fitted with vapor recovery equipment.  
        The equipment must recover and manage 95 percent of hydrocarbons 
        emitted during the transfer of gasoline from the underground 
        storage tank and the transport delivery vehicle by January 1, 
        2006.  After January 1, 2006, no gasoline may be delivered to a 
        retail location by a transport vehicle that is not fitted with 
        vapor recovery equipment. 
           Sec. 145.  Minnesota Statutes 2002, section 116.50, is 
        amended to read: 
           116.50 [PREEMPTION.] 
           Sections 116.46 to 116.49 preempt conflicting local and 
        municipal rules or ordinances requiring notification or 
        establishing environmental protection requirements for 
        underground storage tanks.  A state agency or local unit of 
        government may not adopt rules or ordinances establishing or 
        requiring vapor recovery for underground storage tanks. 
           Sec. 146.  Minnesota Statutes 2002, section 116P.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICABILITY.] The definitions in this 
        section apply to sections 116P.01 to 116P.13 this chapter. 
           Sec. 147.  Minnesota Statutes 2002, section 116P.05, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DUTIES.] (a) The commission shall recommend a 
        budget plan for expenditures from the environment and natural 
        resources trust fund and shall adopt a strategic plan as 
        provided in section 116P.08.  
           (b) The commission shall recommend expenditures to the 
        legislature from the Minnesota future resources fund under 
        section 116P.13 state land and water conservation account in the 
        natural resources fund.  
           (c) It is a condition of acceptance of the appropriations 
        made from the Minnesota future resources fund, Minnesota 
        environment and natural resources trust fund, and oil overcharge 
        money under section 4.071, subdivision 2, that the agency or 
        entity receiving the appropriation must submit a work program 
        and semiannual progress reports in the form determined by the 
        legislative commission on Minnesota resources.  None of the 
        money provided may be spent unless the commission has approved 
        the pertinent work program. 
           (d) The peer review panel created under section 116P.08 
        must also review, comment, and report to the commission on 
        research proposals applying for an appropriation from the 
        Minnesota resources fund and from oil overcharge money under 
        section 4.071, subdivision 2. 
           (e) The commission may adopt operating procedures to 
        fulfill its duties under sections 116P.01 to 116P.13 chapter 
        116P. 
           Sec. 148.  Minnesota Statutes 2002, section 116P.09, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PERSONNEL.] Persons who are employed by a state 
        agency to work on a project and are paid by an appropriation 
        from the trust fund or Minnesota future resources fund are in 
        the unclassified civil service, and their continued employment 
        is contingent upon the availability of money from the 
        appropriation.  When the appropriation has been spent, their 
        positions must be canceled and the approved complement of the 
        agency reduced accordingly.  Part-time employment of persons for 
        a project is authorized.  The use of classified employees is 
        authorized when approved as part of the work program required by 
        section 116P.05, subdivision 2, paragraph (c). 
           Sec. 149.  Minnesota Statutes 2002, section 116P.09, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ADMINISTRATIVE EXPENSE.] The administrative 
        expenses of the commission shall be paid from the various funds 
        administered by the commission as follows: 
           (1) Through June 30, 1993, the administrative expenses of 
        the commission and the advisory committee shall be paid from the 
        Minnesota future resources fund.  After that time, the prorated 
        expenses related to administration of the trust fund shall be 
        paid from the earnings of the trust fund. 
           (2) After June 30, 1993, the prorated expenses related to 
        commission administration of the trust fund may not exceed an 
        amount equal to four percent of the projected earnings amount 
        available for appropriation of the trust fund for the biennium. 
           Sec. 150.  Minnesota Statutes 2002, section 116P.09, 
        subdivision 7, is amended to read: 
           Subd. 7.  [REPORT REQUIRED.] The commission shall, by 
        January 15 of each odd-numbered year, submit a report to the 
        governor, the chairs of the house appropriations and senate 
        finance committees, and the chairs of the house and senate 
        committees on environment and natural resources.  Copies of the 
        report must be available to the public.  The report must include:
           (1) a copy of the current strategic plan; 
           (2) a description of each project receiving money from the 
        trust fund and Minnesota future resources fund during the 
        preceding biennium; 
           (3) a summary of any research project completed in the 
        preceding biennium; 
           (4) recommendations to implement successful projects and 
        programs into a state agency's standard operations; 
           (5) to the extent known by the commission, descriptions of 
        the projects anticipated to be supported by the trust fund and 
        Minnesota future resources account during the next biennium; 
           (6) the source and amount of all revenues collected and 
        distributed by the commission, including all administrative and 
        other expenses; 
           (7) a description of the assets and liabilities of the 
        trust fund and the Minnesota future resources fund; 
           (8) any findings or recommendations that are deemed proper 
        to assist the legislature in formulating legislation; 
           (9) a list of all gifts and donations with a value over 
        $1,000; 
           (10) a comparison of the amounts spent by the state for 
        environment and natural resources activities through the most 
        recent fiscal year; and 
           (11) a copy of the most recent compliance audit. 
           Sec. 151.  Minnesota Statutes 2002, section 116P.10, is 
        amended to read: 
           116P.10 [ROYALTIES, COPYRIGHTS, PATENTS.] 
           This section applies to projects supported by the trust 
        fund, the Minnesota future resources fund, and the oil 
        overcharge money referred to in section 4.071, subdivision 2, 
        each of which is referred to in this section as a "fund."  The 
        fund owns and shall take title to the percentage of a royalty, 
        copyright, or patent resulting from a project supported by the 
        fund equal to the percentage of the project's total funding 
        provided by the fund.  Cash receipts resulting from a royalty, 
        copyright, or patent, or the sale of the fund's rights to a 
        royalty, copyright, or patent, must be credited immediately to 
        the principal of the fund.  Receipts from Minnesota future 
        resources fund projects must be credited to the trust fund. 
        Before a project is included in the budget plan, the commission 
        may vote to relinquish the ownership or rights to a royalty, 
        copyright, or patent resulting from a project supported by the 
        fund to the project's proposer when the amount of the original 
        grant or loan, plus interest, has been repaid to the fund. 
           Sec. 152.  Minnesota Statutes 2002, section 116P.14, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DESIGNATED AGENCY.] The department of 
        natural resources is designated as the state agency to apply 
        for, accept, receive, and disburse federal reimbursement funds 
        and private funds, which are granted to the state of Minnesota 
        from section 6 of the federal Land and Water Conservation Fund 
        Act. 
           Sec. 153.  Minnesota Statutes 2002, section 116P.14, 
        subdivision 2, is amended to read: 
           Subd. 2.  [STATE LAND AND WATER CONSERVATION ACCOUNT; 
        CREATION.] A state land and water conservation account is 
        created in the Minnesota future natural resources fund.  All of 
        the money made available to the state from funds granted under 
        subdivision 1 shall be deposited in the state land and water 
        conservation account. 
           Sec. 154.  Minnesota Statutes 2002, section 297A.94, is 
        amended to read: 
           297A.94 [DEPOSIT OF REVENUES.] 
           (a) Except as provided in this section, the commissioner 
        shall deposit the revenues, including interest and penalties, 
        derived from the taxes imposed by this chapter in the state 
        treasury and credit them to the general fund.  
           (b) The commissioner shall deposit taxes in the Minnesota 
        agricultural and economic account in the special revenue fund if:
           (1) the taxes are derived from sales and use of property 
        and services purchased for the construction and operation of an 
        agricultural resource project; and 
           (2) the purchase was made on or after the date on which a 
        conditional commitment was made for a loan guaranty for the 
        project under section 41A.04, subdivision 3. 
        The commissioner of finance shall certify to the commissioner 
        the date on which the project received the conditional 
        commitment.  The amount deposited in the loan guaranty account 
        must be reduced by any refunds and by the costs incurred by the 
        department of revenue to administer and enforce the assessment 
        and collection of the taxes.  
           (c) The commissioner shall deposit the revenues, including 
        interest and penalties, derived from the taxes imposed on sales 
        and purchases included in section 297A.61, subdivision 3, 
        paragraph (g), clauses (1) and (4), in the state treasury, and 
        credit them as follows: 
           (1) first to the general obligation special tax bond debt 
        service account in each fiscal year the amount required by 
        section 16A.661, subdivision 3, paragraph (b); and 
           (2) after the requirements of clause (1) have been met, the 
        balance to the general fund. 
           (d) The commissioner shall deposit the revenues, including 
        interest and penalties, collected under section 297A.64, 
        subdivision 5, in the state treasury and credit them to the 
        general fund.  By July 15 of each year the commissioner shall 
        transfer to the highway user tax distribution fund an amount 
        equal to the excess fees collected under section 297A.64, 
        subdivision 5, for the previous calendar year. 
           (e) For fiscal year 2001, 97 percent; for fiscal years 2002 
        and 2003, 87 percent; and for fiscal year 2004 and thereafter, 
        87.1 72.43 percent of the revenues, including interest and 
        penalties, transmitted to the commissioner under section 
        297A.65, must be deposited by the commissioner in the state 
        treasury as follows: 
           (1) 50 percent of the receipts must be deposited in the 
        heritage enhancement account in the game and fish fund, and may 
        be spent only on activities that improve, enhance, or protect 
        fish and wildlife resources, including conservation, 
        restoration, and enhancement of land, water, and other natural 
        resources of the state; 
           (2) 22.5 percent of the receipts must be deposited in the 
        natural resources fund, and may be spent only for state parks 
        and trails; 
           (3) 22.5 percent of the receipts must be deposited in the 
        natural resources fund, and may be spent only on metropolitan 
        park and trail grants; 
           (4) three percent of the receipts must be deposited in the 
        natural resources fund, and may be spent only on local trail 
        grants; and 
           (5) two percent of the receipts must be deposited in the 
        natural resources fund, and may be spent only for the Minnesota 
        zoological garden, the Como park zoo and conservatory, and the 
        Duluth zoo. 
           (f) The revenue dedicated under paragraph (e) may not be 
        used as a substitute for traditional sources of funding for the 
        purposes specified, but the dedicated revenue shall supplement 
        traditional sources of funding for those purposes.  Land 
        acquired with money deposited in the game and fish fund under 
        paragraph (e) must be open to public hunting and fishing during 
        the open season, except that in aquatic management areas or on 
        lands where angling easements have been acquired, fishing may be 
        prohibited during certain times of the year and hunting may be 
        prohibited.  At least 87 percent of the money deposited in the 
        game and fish fund for improvement, enhancement, or protection 
        of fish and wildlife resources under paragraph (e) must be 
        allocated for field operations. 
           Sec. 155.  Minnesota Statutes 2002, section 297F.10, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TAX AND USE TAX ON CIGARETTES.] Revenue 
        received from cigarette taxes, as well as related penalties, 
        interest, license fees, and miscellaneous sources of revenue 
        shall be deposited by the commissioner in the state treasury and 
        credited as follows: 
           (a) first to the general obligation special tax bond debt 
        service account in each fiscal year the amount required to 
        increase the balance on hand in the account on each December 1 
        to an amount equal to the full amount of principal and interest 
        to come due on all outstanding bonds whose debt service is 
        payable primarily from the proceeds of the tax to and including 
        the second following July 1; and 
           (b) after the requirements of paragraph (a) have been met:, 
           (1) the revenue produced by one mill of the tax on 
        cigarettes weighing not more than three pounds a thousand and 
        two mills of the tax on cigarettes weighing more than three 
        pounds a thousand must be credited to the Minnesota future 
        resources fund; and 
           (2) the balance of the revenues derived from taxes, 
        penalties, and interest (under this chapter) and from license 
        fees and miscellaneous sources of revenue shall be credited to 
        the general fund. 
           Sec. 156.  [WATER QUALITY ASSESSMENT PROCESS.] 
           Subdivision 1.  [RULEMAKING.] (a) By January 1, 2006, the 
        pollution control agency shall adopt rules under Minnesota 
        Statutes, chapter 14, relating to water quality assessment for 
        the waters of the state.  The adopted rules must, at a minimum, 
        satisfy paragraphs (b) to (h). 
           (b) The rules must apply to the determination of impaired 
        waters as required by Section 303(d) of the Clean Water Act of 
        1977, United States Code, title 33, chapter 26, section 1313(d). 
           (c) The rules must define the terms "altered materially," 
        "material increase," "material manner," "seriously impaired," 
        and "significant increase," contained in Minnesota Rules, part 
        7050.0150, subpart 3. 
           (d) The rules must define the terms "normal fishery" and 
        "normally present," contained in Minnesota Rules, part 
        7050.0150, subpart 3. 
           (e) The rules must specify that for purposes of the 
        determination of impaired waters, the agency will make an 
        impairment determination based only on pollution of waters of 
        the state that has resulted in degradation of the physical, 
        chemical, or biological qualities of the water body to the 
        extent that attainable or previously existing beneficial uses 
        are actually or potentially lost. 
           (f) The rules must provide that when a person presents 
        information adequately demonstrating that a beneficial use for 
        the water body does not exist and is not attainable due to the 
        natural condition of the water body, the agency shall initiate 
        an administrative process for reclassification of the water to 
        remove the beneficial use. 
           (g) The rules must provide that the agency, in considering 
        impairment due to nutrients and application of nutrient 
        objectives and effluent limitations related to riverine systems 
        or riverine impoundments, must consider temperature and 
        detention time effects on algal populations when the discharge 
        of nutrients is expected to cause or contribute to algal growth 
        that impairs existing or attainable uses. 
           (h) The agency shall apply Minnesota Rules, part 7050.0150, 
        consistent with paragraphs (e) and (g). 
           Subd. 2.  [REPORT TO LEGISLATURE.] By February 1, 2004, and 
        by February 1, 2005, the commissioner shall report to the 
        environment and natural resources finance committees of the 
        house and senate on the status of discussions with stakeholders 
        and the development of the rules required under subdivision 1. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 157.  [MODIFICATIONS TO STORM WATER PERMIT FEES.] 
           (a) The pollution control agency shall collect water 
        quality permit applications and annual fees as provided in the 
        rules of the agency and in Laws 2002, chapter 220, article 8, 
        section 15, as amended by Laws 2002, chapter 374, article 6, 
        section 8, with the following modifications: 
           (1) the application fee for general industrial storm water 
        permits is reduced to zero, and the annual fee is increased to 
        $400; 
           (2) the application fee for general construction storm 
        water permits is increased to $400; and 
           (3) application and annual fees for other general permits 
        do not apply to general municipal separate storm sewer system 
        permits. 
           (b) Nothing in this section limits the authority of a 
        county, city, town, watershed district, or other special purpose 
        district or political subdivision, to impose fees or to levy 
        taxes or assessments to pay the cost of regulating or 
        controlling storm water discharges to waters of the state. 
           (c) The permit fee modifications provided in this section 
        are effective July 1, 2003.  The pollution control agency shall 
        adopt amended water quality permit fee rules under Minnesota 
        Statutes, section 14.389, that incorporate the fee modifications 
        provided in this section.  The agency shall begin collecting 
        fees in accordance with the modifications in this section on 
        July 1, 2003, regardless of the status of those rules.  
        Notwithstanding Minnesota Statutes, section 14.18, subdivision 
        2, the permit fee modifications in this section and the rule 
        amendments incorporating them do not require further legislative 
        approval. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 158.  [UTILITY LICENSES.] 
           (a) The fees in Minnesota Rules, parts 6135.0400 to 
        6135.0810, adopted under Minnesota Statutes, section 84.415, are 
        to be amended as follows: 
           (1) effective July 1, 2003, the application fee for a 
        license to construct a utility crossing over or under public 
        lands or over or under public waters is $500; and 
           (2) effective July 1, 2004, the fee schedules of Minnesota 
        Rules, parts 6135.0510 to 6135.0810, are increased to an amount 
        equal to the current schedules plus an increase due to inflation 
        from 1990 through 2002.  The basis of increase shall be the 
        unadjusted producer price index for all commodities, and the 
        index value used shall be the annual average as revised four 
        months after publication. 
           (b) The commissioner of natural resources shall amend 
        Minnesota Rules, parts 6135.0400 to 6135.0810, according to this 
        section and under Minnesota Statutes, section 14.388, clause 
        (3).  Except as provided in Minnesota Statutes, section 14.388, 
        Minnesota Statutes, section 14.386, does not apply. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 159.  [TRANSFER OF ASSETS; MINNESOTA CONSERVATION 
        CORPS.] 
           The state's ownership interest in all tools, computers, and 
        other supplies and equipment acquired by the commissioner of 
        natural resources for the purpose of the conservation corps 
        created under Minnesota Statutes, section 84.98, is transferred 
        to the friends of the Minnesota conservation corps. 
           Sec. 160.  [TRANSFER OF FUNDS; MINNESOTA CONSERVATION 
        CORPS.] 
           The remaining balances in the Minnesota conservation corps: 
        cooperative agreement, youthworks, Americorps administration, 
        education vouchers, and gift accounts on June 30, 2003, are 
        canceled and reappropriated to the friends of the Minnesota 
        conservation corps. 
           Sec. 161.  [COUNTY PROCESSING GRANT OBLIGATIONS.] 
           The outstanding obligations arising from the following 
        specified processing facility grants provided by the office of 
        environmental assistance to the listed counties are terminated, 
        notwithstanding the provisions of Minnesota Statutes, section 
        16A.695: 
           (1) Fillmore county, for demonstration program grants 
        awarded March 1987 and June 1991; 
           (2) St. Louis county, for a capital assistance program 
        grant awarded September 1989; 
           (3) Wright county, for a capital assistance program grant 
        awarded April 1990; 
           (4) Isanti, Chisago, Pine, Mille Lacs, and Kanabec 
        counties, together as the east central solid waste commission, 
        for a capital assistance program grant awarded September 1990, 
        and a facility optimization grant awarded February 1994; and 
           (5) Pennington county, for a capital assistance program 
        grant awarded in February 1992. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 162.  [ENFORCEMENT AUTHORITY REPORT.] 
           The commissioner of natural resources must report to the 
        chairs of the house of representatives and senate environment 
        and judiciary policy committees by February 1, 2004, on 
        clarification of conservation officer authority and any law 
        enforcement authority for other employees of the department. 
           Sec. 163.  [CONSOLIDATION AND STREAMLINING REPORT.] 
           (a) By September 1, 2003, the pollution control agency, 
        department of natural resources, office of environmental 
        assistance, and board of water and soil resources shall report 
        to the chairs of the senate environment and natural resources 
        committee, the senate environment, agriculture, and economic 
        budget division, house environment and natural resources policy 
        committee, and house environment and natural resources finance 
        committee on all of their reporting requirements that apply to 
        counties. 
           (b) By January 15, 2004, the pollution control agency, 
        department of natural resources, office of environmental 
        assistance, and board of water and soil resources shall present 
        a joint report to the chairs of the senate environment and 
        natural resources committee, the senate environment, 
        agriculture, and economic budget division, house environment and 
        natural resources policy committee, and house environment and 
        natural resources finance committee providing recommendations on 
        streamlining and coordinating county reporting requirements. 
           (c) In developing the list of reporting requirements and 
        recommendations on streamlining and coordinating county 
        reporting requirements, the agencies must: 
           (1) consult with the association of Minnesota counties and 
        other county representatives; 
           (2) identify the minimum information needed to measure 
        county compliance with state law and rules; 
           (3) identify how agencies can prepare one or more annual 
        reports summarizing information reported by counties; 
           (4) consider how the Internet can be used to collect and 
        organize county reported information; and 
           (5) identify the costs and savings of implementing the 
        recommendations contained in this report. 
           Sec. 164.  [INDIVIDUAL SEWAGE TREATMENT SYSTEM STUDY.] 
           The commissioner of the pollution control agency, with 
        input from stakeholders, must develop and report back to the 
        house and senate environment and natural resources policy and 
        finance committees by February 1, 2004, a ten-year plan to: 
           (1) locate systems that are imminent threats to public 
        health and safety, and those with less than two feet of soil 
        separation; 
           (2) upgrade the systems identified in clause (1); and 
           (3) institute a system to oversee compliance with 
        individual sewage treatment maintenance requirements of 
        Minnesota Rules, part 7080.0175, by July 1, 2005. 
           The ten-year plan must include funding options for clauses 
        (1), (2), and (3) and shall recommend enhanced funding 
        mechanisms for low-interest loans to homeowners for system 
        upgrades. 
           Sec. 165.  [ISTS PILOT PROGRAM.] 
           The pollution control agency shall, in conjunction with the 
        association of Minnesota counties, designate three cooperating 
        counties with waterbodies listed as impaired by fecal coliform 
        bacteria, and within designated counties shall: 
           (1) by July 1, 2007, complete an inventory of properties 
        with individual sewage treatment systems that are an imminent 
        threat to public health or safety due to surface water 
        discharges of untreated sewage, and the inventory of properties 
        may be phased over the period of the pilot project; and 
           (2) require compliance under the applicable requirements of 
        this section by May 1, 2008.  The pollution control agency may 
        utilize cooperative agreements with the three pilot counties to 
        meet the requirements of clauses (1) and (2). 
           Sec. 166.  [PHOSPHORUS STUDY.] 
           The commissioner of the pollution control agency must study 
        the concept of lowering phosphorus in the wastewater stream and 
        the effect on water quality in the receiving waters and how to 
        best assist local units of government in removing phosphorus at 
        public wastewater treatment plants, including the establishment 
        of a timeline for meeting the goal in Minnesota Statutes, 
        section 115.42.  The commissioner must review the rules on 
        nutrients in cleaning agents under Minnesota Statutes, sections 
        116.23 and 116.24, and report the results of the study and rule 
        review to the house of representatives and senate environment 
        and natural resources policy and finance committees and commerce 
        committees by February 1, 2004. 
           Sec. 167.  [FOREST LAND OFF-HIGHWAY VEHICLE USE 
        RECLASSIFICATION.] 
           Subdivision 1.  [FOREST CLASSIFICATION STATUS REVIEW.] (a) 
        By December 31, 2006, the commissioner of natural resources 
        shall complete a review of the forest classification status of 
        all state forests classified as managed, all forest lands under 
        the authority of the commissioner as defined in Minnesota 
        Statutes, section 89.001, subdivision 13, and lands managed by 
        the commissioner under Minnesota Statutes, section 282.011.  The 
        review must be conducted on a forest-by-forest and area-by-area 
        basis in accordance with the process and criteria under 
        Minnesota Rules, part 6100.1950.  After each forest is reviewed, 
        the commissioner must change its status to limited or closed, 
        and must provide a similar status for each of the other areas 
        subject to review under this section after each individual 
        review is completed.  
           (b) If the commissioner determines on January 1, 2005, that 
        the review required under this section cannot be completed by 
        December 31, 2006, the completion date for the review shall be 
        extended to December 31, 2008.  By January 15, 2005, the 
        commissioner shall report to the chairs of the legislative 
        committees with jurisdiction over natural resources policy and 
        finance regarding the status of the process required by this 
        section.  
           (c) Until December 31, 2010, the state forests and areas 
        subject to review under this section are exempt from Minnesota 
        Statutes, section 84.777, unless an individual forest or area 
        has been classified as limited or closed.  
           Subd. 2.  [TEMPORARY SUSPENSION OF ENVIRONMENTAL 
        REVIEW.] The requirements for environmental review under 
        Minnesota Statutes, section 116D.04, and rules of the 
        environmental quality board are temporarily suspended for each 
        reclassification and trail designation made under subdivision 1 
        until the commissioner has met all requirements under 
        subdivision 1, or December 31, 2008, if the commissioner has 
        failed to complete those requirements as required by law.  
           Subd. 3.  [RULEMAKING.] By January 1, 2005, the 
        environmental quality board shall adopt rules providing for 
        threshold levels for environmental review for recreational 
        trails.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 168.  [STUDY OF OFF-HIGHWAY VEHICLE TRAILS.] 
           By January 15, 2005, the commissioner of natural resources 
        must submit a report to the chairs of the legislative committees 
        with jurisdiction over natural resources policy and finance 
        concerning the compatibility of multiple uses of the outdoor 
        recreation system.  The report must address the current and 
        future availability of recreational opportunities for 
        nonmotorized and motorized activities, and recommend legislative 
        and policy changes to preserve natural resources and to assure 
        the continued availability of outdoor recreation opportunities 
        for all residents of this state.  The report must also address 
        cost of maintenance, operation, and enforcement for the current 
        off-highway vehicle trails system, including, but not limited 
        to, how many miles of trails the department's off-highway 
        vehicle budget will support.  The report must include: 
           (1) a detailed discussion of sources of revenue for trails; 
           (2) an analysis of recent and projected expenditures from 
        the off-highway vehicle accounts; 
           (3) information regarding all other sources of revenue used 
        for off-highway vehicle purposes; and 
           (4) a current inventory of all the state forest roads and 
        access routes, including designated off-highway vehicle routes 
        and all motorized and nonmotorized trails. 
           Sec. 169.  [CONTINUOUS TRAIL DESIGNATION.] 
           (a) The commissioner of natural resources shall locate, 
        plan, design, map, construct, designate, and sign a new trail 
        for use by all-terrain vehicles and off-highway motorcycles of 
        not less than 70 continuous miles in length on any land owned by 
        the state or in cooperation with any county on land owned by 
        that county or on a combination of any of these lands.  This new 
        trail shall be ready for use by April 1, 2007.  
           (b) All funding for this new trail shall come from the 
        all-terrain vehicle dedicated account and is appropriated each 
        year as needed.  
           (c) This new trail shall have at least two areas of access 
        complete with appropriate parking for vehicles and trailers and 
        enough room for loading and unloading all-terrain vehicles.  
        Some existing trails, that are strictly all-terrain vehicle 
        trails, and are not inventoried forest roads, may be 
        incorporated into the design of this new all-terrain vehicle 
        trail.  This new trail may be of a continuous loop design and 
        shall provide for spurs to other all-terrain vehicle trails as 
        long as those spurs do not count toward the 70 continuous miles 
        of this new all-terrain vehicle trail.  Four rest areas shall be 
        provided along the way. 
           Sec. 170.  [WELL DISCLOSURE IN WASHINGTON COUNTY.] 
           Before signing an agreement to sell or transfer real 
        property in Washington county that is not served by a municipal 
        water system, the seller must state in writing to the buyer 
        whether, to the seller's knowledge, the property is located 
        within a special well construction area designated by the 
        commissioner of health under Minnesota Rules, part 4725.3650.  
        If the disclosure under Minnesota Statutes, section 103I.235, 
        subdivision 1, paragraph (a), states that there is an unsealed 
        well on the property, the disclosure required under this clause 
        must be made regardless of whether the property is served by a 
        municipal water system. 
           [EFFECTIVE DATE.] This section is effective the day after 
        the governing body of Washington county and its chief clerical 
        officer timely complete their compliance with Minnesota 
        Statutes, section 645.021, subdivisions 2 and 3.  It applies to 
        transactions for which purchase agreements are entered into 
        after that date. 
           Sec. 171.  [EXPIRATION OF GAME AND FISH AGENT LICENSES.] 
           Electronic game and fish license agent agreements that are 
        scheduled to expire in February 2004 must be extended by the 
        commissioner of natural resources until June 30, 2004. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 172.  [TEMPORARY PETROFUND FEE EXEMPTION FOR MINNESOTA 
        COMMERCIAL AIRLINES.] 
           (a) A commercial airline providing regularly scheduled jet 
        service and with its corporate headquarters in Minnesota is 
        exempt from the fee established in Minnesota Statutes, section 
        115C.08, subdivision 3, until July 1, 2005, provided the airline 
        develops a plan approved by the commissioner of commerce 
        demonstrating that the savings from this exemption will go 
        towards minimizing job losses in Minnesota, and to support the 
        airline's efforts to avoid filing for federal bankruptcy 
        protections. 
           (b) A commercial airline exempted from the fee is 
        ineligible to receive reimbursement under Minnesota Statutes, 
        chapter 115C, until July 1, 2005.  A commercial airline that has 
        a release during the fee exemption period is ineligible to 
        receive reimbursement under Minnesota Statutes, chapter 115C, 
        for the costs incurred in response to that release. 
           Sec. 173.  [STATE AGENCY REIMBURSEMENT.] 
           State agencies that incurred reimbursable costs from 1990 
        to 2002 in responding to a petroleum tank release and have not 
        submitted an application for reimbursement to the petroleum tank 
        release compensation board as of the effective date of this 
        section shall submit an application for reimbursement by January 
        1, 2005.  State agencies that receive reimbursement from the 
        board must deposit reimbursement received from the petroleum 
        tank release cleanup fund in the general fund or other state 
        fund from which the agency expended funds for this purpose. 
           Sec. 174.  [USE OF MOTORIZED DEVICES ON STATE NONMOTORIZED 
        TRAILS BY PHYSICALLY DISABLED INDIVIDUALS; REVIEW.] 
           By January 15, 2004, the commissioner of natural resources 
        shall complete a review of the use of motorized devices on 
        nonmotorized state trails by physically disabled individuals and 
        report the results to the chairs of the legislative committees 
        with jurisdiction over natural resources policy and finance. 
           Sec. 175.  [REVISOR'S INSTRUCTION.] 
           The revisor of statutes shall change the reference in 
        Minnesota Rules, part 8420.0740, subpart 1, item I, subitem (3), 
        from "8420.0720, subpart 8a" to "8420.0720, subpart 8." 
           Sec. 176.  [REPEALER.] 
           (a) Minnesota Statutes 2002, sections 1.31; 1.32; 84.0887; 
        84.98; 84.99; 103B.311, subdivisions 5, 6, and 7; 103B.315, 
        subdivisions 1, 2, 3, and 7; 103B.321, subdivision 3; and 
        103B.3369, subdivision 3, are repealed. 
           (b) Minnesota Statutes 2002, section 97A.105, subdivisions 
        3a and 3b, are repealed on January 1, 2004. 
           (c) Minnesota Rules, parts 9300.0010; 9300.0020; 9300.0030; 
        9300.0040; 9300.0050; 9300.0060; 9300.0070; 9300.0080; 
        9300.0090; 9300.0100; 9300.0110; 9300.0120; 9300.0130; 
        9300.0140; 9300.0150; 9300.0160; 9300.0170; 9300.0180; 
        9300.0190; 9300.0200; and 9300.0210, are repealed. 

                                   ARTICLE 2 
                           ENVIRONMENTAL FUND CHANGES 
           Section 1.  Minnesota Statutes 2002, section 16A.531, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ENVIRONMENTAL FUND.] There is created in 
        the state treasury an environmental fund as a special revenue 
        fund for deposit of receipts from environmentally related taxes, 
        fees, and activities conducted by the state other sources as 
        provided in subdivision 1a.  
           Sec. 2.  Minnesota Statutes 2002, section 16A.531, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [REVENUES.] The following revenues must be 
        deposited in the environmental fund: 
           (1) all revenue from the motor vehicle transfer fee imposed 
        under section 115A.908; 
           (2) all fees collected under section 116.07, subdivision 
        4d; 
           (3) all money collected by the pollution control agency in 
        enforcement matters as provided in section 115.073; 
           (4) all revenues from license fees for individual sewage 
        treatment systems under section 115.56; 
           (5) all loan repayments deposited under section 115A.0716; 
           (6) all revenue from pollution prevention fees imposed 
        under section 115D.12; 
           (7) all loan repayments deposited under section 116.994; 
           (8) all fees collected under section 116C.834; 
           (9) revenue collected from the solid waste management tax 
        pursuant to chapter 297H; 
           (10) fees collected under section 473.844; and 
           (11) interest accrued on the fund. 
           Sec. 3.  Minnesota Statutes 2002, section 115.073, is 
        amended to read: 
           115.073 [ENFORCEMENT FUNDING.] 
           Except as provided in sections 115B.20, subdivision 4, 
        clause (2); section 115C.05; and 473.845, subdivision 8, all 
        money recovered by the state under this chapter and chapters 
        115A and 116, including civil penalties and money paid under an 
        agreement, stipulation, or settlement, excluding money paid for 
        past due fees or taxes, up to the amount appropriated for 
        implementation of Laws 1991, chapter 347, must be deposited in 
        the state treasury and credited to the environmental fund. 
           Sec. 4.  Minnesota Statutes 2002, section 115.56, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LICENSE FEE.] The fee for a license required 
        under subdivision 2 is $100 per year.  Revenue from the fees 
        must be credited to the environmental fund and is exempt from 
        section 16A.1285. 
           Sec. 5.  Minnesota Statutes 2002, section 115A.0716, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REVOLVING ACCOUNT.] An environmental assistance 
        revolving account is established in the environmental fund.  All 
        repayments of loans awarded under this subdivision, including 
        principal and interest, must be deposited into credited to the 
        account environmental fund.  Money deposited in the account 
        fund under this section is annually appropriated to the director 
        for loans for purposes identified in subdivisions 1 and 2. 
           Sec. 6.  Minnesota Statutes 2002, section 115A.9651, 
        subdivision 6, is amended to read: 
           Subd. 6.  [PRODUCT REVIEW REPORTS.] (a) Except as provided 
        under subdivision 7, the manufacturer, or an association of 
        manufacturers, of any specified product distributed for sale or 
        use in this state that is not listed pursuant to subdivision 4 
        shall submit a product review report and fee as provided in 
        paragraph (c) to the commissioner for each product by July 1, 
        1998.  Each product review report shall contain at least the 
        following: 
           (1) a policy statement articulating upper management 
        support for eliminating or reducing intentional introduction of 
        listed metals into its products; 
           (2) a description of the product and the amount of each 
        listed metal distributed for use in this state; 
           (3) a description of past and ongoing efforts to eliminate 
        or reduce the listed metal in the product; 
           (4) an assessment of options available to reduce or 
        eliminate the intentional introduction of the listed metal 
        including any alternatives to the specified product that do not 
        contain the listed metal, perform the same technical function, 
        are commercially available, and are economically practicable; 
           (5) a statement of objectives in numerical terms and a 
        schedule for achieving the elimination of the listed metals and 
        an environmental assessment of alternative products; 
           (6) a listing of options considered not to be technically 
        or economically practicable; and 
           (7) certification attesting to the accuracy of the 
        information in the report signed and dated by an official of the 
        manufacturer or user. 
        If the manufacturer fails to submit a product review report, a 
        user of a specified product may submit a report and fee which 
        comply with this subdivision by August 15, 1998. 
           (b) By July 1, 1999, and annually thereafter until the 
        commissioner takes action under subdivision 9, the manufacturer 
        or user must submit a progress report and fee as provided in 
        paragraph (c) updating the information presented under paragraph 
        (a). 
           (c) The fee shall be $295 for each report.  The fee shall 
        be deposited in the state treasury and credited to the 
        environmental fund.  The fee is exempt from section 16A.1285.  
           (d) Where it cannot be determined from a progress report 
        submitted by a person pursuant to Laws 1994, chapter 585, 
        section 30, subdivision 2, paragraph (e), the number of products 
        for which product review reports are due under this subdivision, 
        the commissioner shall have the authority to determine, after 
        consultation with that person, the number of products for which 
        product review reports are required. 
           (e) The commissioner shall summarize, aggregate, and 
        publish data reported under paragraphs (a) and (b) annually. 
           (f) A product that is the subject of a recommendation by 
        the Toxics in Packaging Clearinghouse, as administered by the 
        Council of State Governments, is exempt from this section. 
           Sec. 7.  Minnesota Statutes 2002, section 115B.17, 
        subdivision 6, is amended to read: 
           Subd. 6.  [RECOVERY OF EXPENSES.] Any reasonable and 
        necessary expenses incurred by the agency or commissioner 
        pursuant to this section, including all response costs, and 
        administrative and legal expenses, may be recovered in a civil 
        action brought by the attorney general against any person who 
        may be liable under section 115B.04 or any other law.  The 
        agency's certification of expenses shall be prima facie evidence 
        that the expenses are reasonable and necessary.  Any expenses 
        incurred pursuant to this section which are recovered by the 
        attorney general pursuant to section 115B.04 or any other law, 
        including any award of attorneys fees, shall be deposited in the 
        remediation fund and credited to a special account for 
        additional response actions as provided in section 115B.20, 
        subdivision 2, clause (2) or (4). 
           Sec. 8.  Minnesota Statutes 2002, section 115B.17, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ACTIONS RELATING TO NATURAL RESOURCES.] For the 
        purpose of this subdivision, the state is the trustee of the 
        air, water and wildlife of the state.  An action pursuant to 
        section 115B.04 for damages with respect to air, water or 
        wildlife may be brought by the attorney general in the name of 
        the state as trustee for those natural resources.  Any damages 
        recovered by the attorney general pursuant to section 115B.04 or 
        any other law for injury to, destruction of, or loss of natural 
        resources resulting from the release of a hazardous substance, 
        or a pollutant or contaminant, shall be deposited in the account 
        remediation fund. 
           Sec. 9.  Minnesota Statutes 2002, section 115B.17, 
        subdivision 14, is amended to read: 
           Subd. 14.  [REQUESTS FOR REVIEW, INVESTIGATION, AND 
        OVERSIGHT.] (a) The commissioner may, upon request, assist a 
        person in determining whether real property has been the site of 
        a release or threatened release of a hazardous substance, 
        pollutant, or contaminant.  The commissioner may also assist in, 
        or supervise, the development and implementation of reasonable 
        and necessary response actions.  Assistance may include review 
        of agency records and files, and review and approval of a 
        requester's investigation plans and reports and response action 
        plans and implementation. 
           (b) Except as otherwise provided in this paragraph, the 
        person requesting assistance under this subdivision shall pay 
        the agency for the agency's cost, as determined by the 
        commissioner, of providing assistance.  A state agency, 
        political subdivision, or other public entity is not required to 
        pay for the agency's cost to review agency records and files.  
        Money received by the agency for assistance under this section 
        must be deposited in the environmental response, compensation, 
        and compliance remediation fund and is exempt from section 
        16A.1285. 
           (c) When a person investigates a release or threatened 
        release in accordance with an investigation plan approved by the 
        commissioner under this subdivision, the investigation does not 
        associate that person with the release or threatened release for 
        the purpose of section 115B.03, subdivision 3, clause (4). 
           Sec. 10.  Minnesota Statutes 2002, section 115B.17, 
        subdivision 16, is amended to read: 
           Subd. 16.  [DISPOSITION OF PROPERTY ACQUIRED FOR RESPONSE 
        ACTION.] (a) If the commissioner determines that real or 
        personal property acquired by the agency for response action is 
        no longer needed for response action purposes, the commissioner 
        may: 
           (1) transfer the property to the commissioner of 
        administration to be disposed of in the manner required for 
        other surplus property subject to conditions the commissioner 
        determines necessary to protect the public health and welfare or 
        the environment, or to comply with federal law; 
           (2) transfer the property to another state agency, a 
        political subdivision, or special purpose district as provided 
        in paragraph (b); or 
           (3) if required by federal law, take actions and dispose of 
        the property as required by federal law.  
           (b) If the commissioner determines that real or personal 
        property acquired by the agency for response action must be 
        operated, maintained, or monitored after completion of other 
        phases of the response action, the commissioner may transfer 
        ownership of the property to another state agency, a political 
        subdivision, or special purpose district that agrees to accept 
        the property.  A state agency, political subdivision, or special 
        purpose district is authorized to accept and implement the terms 
        and conditions of a transfer under this paragraph.  The 
        commissioner may set terms and conditions for the transfer that 
        the commissioner considers reasonable and necessary to ensure 
        proper operation, maintenance, and monitoring of response 
        actions, protect the public health and welfare and the 
        environment, and comply with applicable federal and state laws 
        and regulations.  The state agency, political subdivision, or 
        special purpose district to which the property is transferred is 
        not liable under this chapter solely as a result of acquiring 
        the property or acting in accordance with the terms and 
        conditions of the transfer.  
           (c) If the agency acquires property under subdivision 15, 
        the commissioner may lease or grant an easement in the property 
        to a person during the implementation of response actions if the 
        lease or easement is compatible with or necessary for response 
        action implementation. 
           (d) The proceeds of a sale, lease, or other transfer of 
        property under this subdivision by the commissioner or by the 
        commissioner of administration shall be deposited in the 
        environmental response, compensation, and compliance account 
        remediation fund.  Any share of the proceeds that the agency is 
        required by federal law or regulation to reimburse to the 
        federal government is appropriated from the account to the 
        agency for that purpose. Except for section 94.16, subdivision 
        2, the provisions of section 94.16 do not apply to real property 
        sold by the commissioner of administration which was acquired 
        under subdivision 15. 
           Sec. 11.  Minnesota Statutes 2002, section 115B.19, is 
        amended to read: 
           115B.19 [PURPOSES OF ACCOUNT AND TAXES PURPOSE OF FUND.] 
           In establishing the environmental response, compensation 
        and compliance account remediation fund in section 115B.20 and 
        imposing taxes in section 115B.22 116.155 it is the purpose of 
        the legislature to:  
           (1) encourage treatment and disposal of hazardous waste in 
        a manner that adequately protects the public health or welfare 
        or the environment; 
           (2) encourage responsible parties to provide the response 
        actions necessary to protect the public and the environment from 
        the effects of the release of hazardous substances; 
           (3) encourage the use of alternatives to land disposal of 
        hazardous waste including resource recovery, recycling, 
        neutralization, and reduction; 
           (4) provide state agencies with the financial resources 
        needed to prepare and implement an effective and timely state 
        response to the release of hazardous substances, including 
        investigation, planning, removal and remedial action; 
           (5) compensate for increased governmental expenses and loss 
        of revenue and to provide other appropriate assistance to 
        mitigate any adverse impact on communities in which commercial 
        hazardous waste processing or disposal facilities are located 
        under the siting process provided in chapter 115A; 
           (6) recognize the environmental and public health costs of 
        land disposal of solid waste and of the use and disposal of 
        hazardous substances and to place the burden of financing state 
        hazardous waste management activities on those whose products 
        and services contribute to hazardous waste management problems 
        and increase the risks of harm to the public and the environment.
           Sec. 12.  Minnesota Statutes 2002, section 115B.20, is 
        amended to read: 
           115B.20 [ENVIRONMENTAL RESPONSE, COMPENSATION, AND 
        COMPLIANCE ACCOUNT ACTIONS USING MONEY FROM REMEDIATION FUND.] 
           Subdivision 1.  [ESTABLISHMENT.] (a) The environmental 
        response, compensation, and compliance account is in the 
        environmental fund in the state treasury and may be spent only 
        for the purposes provided in subdivision 2.  
           (b) The commissioner of finance shall administer a response 
        account for the agency and the commissioner of agriculture to 
        take removal, response, and other actions authorized under 
        subdivision 2, clauses (1) to (4) and (9) to (11).  The 
        commissioner of finance shall transfer money from the response 
        account to the agency and the commissioner of agriculture to 
        take actions required under subdivision 2, clauses (1) to (4) 
        and (9) to (11).  
           (c) The commissioner of finance shall administer the 
        account in a manner that allows the commissioner of agriculture 
        and the agency to utilize the money in the account to implement 
        their removal and remedial action duties as effectively as 
        possible. 
           (d) Amounts appropriated to the commissioner of finance 
        under this subdivision shall not be included in the department 
        of finance budget but shall be included in the pollution control 
        agency and department of agriculture budgets. 
           (e) All money recovered by the state under section 115B.04 
        or any other law for injury to, destruction of, or loss of 
        natural resources resulting from the release of a hazardous 
        substance, or a pollutant or contaminant, must be credited to 
        the environmental response, compensation, and compliance account 
        in the environmental fund and is appropriated to the 
        commissioner of natural resources for purposes of subdivision 2, 
        clause (5), consistent with any applicable term of judgments, 
        consent decrees, consent orders, or other administrative actions 
        requiring payments to the state for such purposes.  Before 
        making an expenditure of money appropriated under this 
        paragraph, the commissioner of natural resources shall provide 
        written notice of the proposed expenditure to the chairs of the 
        senate committee on finance, the house of representatives 
        committee on ways and means, the finance division of the senate 
        committee on environment and natural resources, and the house of 
        representatives committee on environment and natural resources 
        finance. 
           Subd. 2.  [PURPOSES FOR WHICH MONEY MAY BE SPENT.] Subject 
        to appropriation by the legislature the money in the 
        account Money appropriated from the remediation fund under 
        section 116.155, subdivision 2, paragraph (a), clause (1), may 
        be spent only for any of the following purposes:  
           (1) preparation by the agency and the commissioner of 
        agriculture for taking removal or remedial action under section 
        115B.17, or under chapter 18D, including investigation, 
        monitoring and testing activities, enforcement and compliance 
        efforts relating to the release of hazardous substances, 
        pollutants or contaminants under section 115B.17 or 115B.18, or 
        chapter 18D; 
           (2) removal and remedial actions taken or authorized by the 
        agency or the commissioner of the pollution control agency under 
        section 115B.17, or taken or authorized by the commissioner of 
        agriculture under chapter 18D including related enforcement and 
        compliance efforts under section 115B.17 or 115B.18, or chapter 
        18D, and payment of the state share of the cost of remedial 
        action which may be carried out under a cooperative agreement 
        with the federal government pursuant to the federal Superfund 
        Act, under United States Code, title 42, section 9604(c)(3) for 
        actions related to facilities other than commercial hazardous 
        waste facilities located under the siting authority of chapter 
        115A; 
           (3) reimbursement to any private person for expenditures 
        made before July 1, 1983, to provide alternative water supplies 
        deemed necessary by the agency or the commissioner of 
        agriculture and the department of health to protect the public 
        health from contamination resulting from the release of a 
        hazardous substance; 
           (4) removal and remedial actions taken or authorized by the 
        agency or the commissioner of agriculture or the pollution 
        control agency under section 115B.17, or chapter 18D, including 
        related enforcement and compliance efforts under section 115B.17 
        or 115B.18, or chapter 18D, and payment of the state share of 
        the cost of remedial action which may be carried out under a 
        cooperative agreement with the federal government pursuant to 
        the federal Superfund Act, under United States Code, title 42, 
        section 9604(c)(3) for actions related to commercial hazardous 
        waste facilities located under the siting authority of chapter 
        115A; 
           (5) assessment and recovery of natural resource damages by 
        the agency and the commissioners of natural resources and 
        administration, and planning and implementation by the 
        commissioner of natural resources of the rehabilitation, 
        restoration, or acquisition of natural resources to remedy 
        injuries or losses to natural resources resulting from the 
        release of a hazardous substance; before implementing a project 
        to rehabilitate, restore, or acquire natural resources under 
        this clause, the commissioner of natural resources shall provide 
        written notice of the proposed project to the chairs of the 
        senate and house of representatives committees with jurisdiction 
        over environment and natural resources finance; 
           (6) inspection, monitoring, and compliance efforts by the 
        agency, or by political subdivisions with agency approval, of 
        commercial hazardous waste facilities located under the siting 
        authority of chapter 115A; 
           (7) grants by the agency or the office of environmental 
        assistance to demonstrate alternatives to land disposal of 
        hazardous waste including reduction, separation, pretreatment, 
        processing and resource recovery, for education of persons 
        involved in regulating and handling hazardous waste; 
           (8) grants by the agency to study the extent of 
        contamination and feasibility of cleanup of hazardous substances 
        and pollutants or contaminants in major waterways of the state; 
           (9) (5) acquisition of a property interest under section 
        115B.17, subdivision 15; 
           (10) (6) reimbursement, in an amount to be determined by 
        the agency in each case, to a political subdivision that is not 
        a responsible person under section 115B.03, for reasonable and 
        necessary expenditures resulting from an emergency caused by a 
        release or threatened release of a hazardous substance, 
        pollutant, or contaminant; and 
           (11) (7) reimbursement to a political subdivision for 
        expenditures in excess of the liability limit under section 
        115B.04, subdivision 4. 
           Subd. 3.  [LIMIT ON CERTAIN EXPENDITURES.] The commissioner 
        of agriculture or the pollution control agency or the agency may 
        not spend any money under subdivision 2, clause (2) or (4), for 
        removal or remedial actions to the extent that the costs of 
        those actions may be compensated from any fund established under 
        the Federal Superfund Act, United States Code, title 42, section 
        9600 et seq.  The commissioner of agriculture or the pollution 
        control agency or the agency shall determine the extent to which 
        any of the costs of those actions may be compensated under the 
        federal act based on the likelihood that the compensation will 
        be available in a timely fashion.  In making this determination 
        the commissioner of agriculture or the pollution control agency 
        or the agency shall take into account:  
           (1) the urgency of the removal or remedial actions and the 
        priority assigned under the Federal Superfund Act to the release 
        which necessitates those actions; 
           (2) the availability of money in the funds established 
        under the Federal Superfund Act; and 
           (3) the consistency of any compensation for the cost of the 
        proposed actions under the Federal Superfund Act with the 
        national contingency plan, if such a plan has been adopted under 
        that act.  
           Subd. 4.  [REVENUE SOURCES.] Revenue from the following 
        sources shall be deposited in the account: 
           (1) the proceeds of the taxes imposed pursuant to section 
        115B.22, including interest and penalties; 
           (2) all money recovered by the state under sections 115B.01 
        to 115B.18 or under any other statute or rule related to the 
        regulation of hazardous waste or hazardous substances, including 
        civil penalties and money paid under any agreement, stipulation 
        or settlement but excluding fees imposed under section 116.12; 
           (3) all interest attributable to investment of money 
        deposited in the account; and 
           (4) all money received in the form of gifts, grants, 
        reimbursement or appropriation from any source for any of the 
        purposes provided in subdivision 2, except federal grants.  
           Subd. 5.  [RECOMMENDATION.] The commissioner of agriculture 
        shall make recommendations to the standing legislative 
        committees on finance and appropriations regarding 
        appropriations from the account. 
           Subd. 6.  [REPORT TO LEGISLATURE.] Each year, the 
        commissioner of agriculture and the agency shall submit to the 
        senate finance committee, the house ways and means committee, 
        the environment and natural resources committees of the senate 
        and house of representatives, the finance division of the senate 
        committee on environment and natural resources, and the house of 
        representatives committee on environment and natural resources 
        finance, and the environmental quality board a report detailing 
        the activities for which money from the account has been spent 
        pursuant to this section during the previous fiscal year. 
           Sec. 13.  Minnesota Statutes 2002, section 115B.22, 
        subdivision 7, is amended to read: 
           Subd. 7.  [DISPOSITION OF PROCEEDS.] After reimbursement to 
        the department of revenue for costs incurred in administering 
        sections 115B.22 and 115B.24, the proceeds of the taxes imposed 
        under this section including any interest and penalties shall be 
        deposited in the environmental response, compensation, and 
        compliance account fund. 
           Sec. 14.  Minnesota Statutes 2002, section 115B.25, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [ACCOUNT FUND.] Except when another fund or 
        account is specified, "account fund" means the environmental 
        response, compensation, and compliance account remediation fund 
        established in section 115B.20 116.155. 
           Sec. 15.  Minnesota Statutes 2002, section 115B.25, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ELIGIBLE PERSON.] "Eligible person" means a 
        person who is eligible to file a claim with the account fund 
        under section 115B.29. 
           Sec. 16.  Minnesota Statutes 2002, section 115B.26, is 
        amended to read: 
           115B.26 [ENVIRONMENTAL RESPONSE, COMPENSATION, AND 
        COMPLIANCE ACCOUNT PAYMENT OF CLAIMS.] 
           Subd. 2.  [APPROPRIATION.] The amount necessary to pay 
        claims of compensation granted by the agency under sections 
        115B.25 to 115B.37 is must be directly appropriated to the 
        agency from the account fund by the legislature.  The agency 
        shall submit claims for compensation to the legislature at the 
        next legislative session. 
           Subd. 3.  [PAYMENT OF CLAIMS WHEN ACCOUNT INSUFFICIENT.] If 
        the amount of the claims granted exceeds the amount in the 
        account, the agency shall request a transfer from the general 
        contingent account to the environmental response, compensation, 
        and compliance account as provided in section 3.30.  If no 
        transfer is approved, the agency shall pay the claims which have 
        been granted in the order granted only to the extent of the 
        money remaining in the account.  The agency shall pay the 
        remaining claims which have been granted after additional money 
        is credited to the account. 
           Subd. 4.  [ACCOUNT TRANSFER REQUEST.] At the end of each 
        fiscal year, the agency shall submit a request to the petroleum 
        tank release compensation board for transfer to the account fund 
        from the petroleum tank release cleanup fund under section 
        115C.08, subdivision 5, of an amount equal to the compensation 
        granted by the agency for claims related to petroleum releases 
        plus administrative costs related to determination of those 
        claims. 
           Sec. 17.  Minnesota Statutes 2002, section 115B.30, is 
        amended to read: 
           115B.30 [ELIGIBLE INJURY AND DAMAGE.] 
           Subdivision 1.  [ELIGIBLE PERSONAL INJURY.] (a) A personal 
        injury which could reasonably have resulted from exposure to a 
        harmful substance released from a facility where it was placed 
        or came to be located is eligible for compensation from 
        the account fund if:  
           (1) it is a medically verified chronic or progressive 
        disease, illness, or disability such as cancer, organic nervous 
        system disorders, or physical deformities, including 
        malfunctions in reproduction, in humans or their offspring, or 
        death; or 
           (2) it is a medically verified acute disease or condition 
        that typically manifests itself rapidly after a single exposure 
        or limited exposures and the persons responsible for the release 
        of the harmful substance are unknown or cannot with reasonable 
        diligence be determined or located or a judgment would not be 
        satisfied in whole or in part against the persons determined to 
        be responsible for the release of the harmful substance.  
           (b) A personal injury is not compensable from the account 
        if: 
           (1) the injury is compensable under the workers' 
        compensation law, chapter 176; 
           (2) the injury arises out of the claimant's use of a 
        consumer product; 
           (3) the injury arises out of an exposure that occurred or 
        is occurring outside the geographical boundaries of the state; 
           (4) the injury results from the release of a harmful 
        substance for which the claimant is a responsible person; or 
           (5) the injury is an acute disease or condition other than 
        one described in paragraph (a). 
           Subd. 2.  [ELIGIBLE PROPERTY DAMAGE.] Damage to real 
        property in Minnesota owned by the claimant is eligible for 
        compensation from the account fund if the damage results from 
        the presence in or on the property of a harmful substance 
        released from a facility where it was placed or came to be 
        located.  Damage to property is not eligible for compensation 
        from the account fund if it results from the release of a 
        harmful substance for which the claimant is a responsible person.
           Subd. 3.  [TIME FOR FILING CLAIM.] (a) A claim is not 
        eligible for compensation from the account fund unless it is 
        filed with the agency within the time provided in this 
        subdivision. 
           (b) A claim for compensation for personal injury must be 
        filed within two years after the injury and its connection to 
        exposure to a harmful substance was or reasonably should have 
        been discovered. 
           (c) A claim for compensation for property damage must be 
        filed within two years after the full amount of compensable 
        losses can be determined. 
           (d) Notwithstanding the provisions of this subdivision, 
        claims for compensation that would otherwise be barred by any 
        statute of limitations provided in sections 115B.25 to 115B.37 
        may be filed not later than January 1, 1992. 
           Sec. 18.  Minnesota Statutes 2002, section 115B.31, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SUBSEQUENT ACTION OR CLAIM PROHIBITED IN 
        CERTAIN CASES.] (a) A person who has settled a claim for an 
        eligible injury or eligible property damage with a responsible 
        person, either before or after bringing an action in court for 
        that injury or damage, may not file a claim with the account for 
        the same injury or damage.  A person who has received a 
        favorable judgment in a court action for an eligible injury or 
        eligible property damage may not file a claim with the account 
        fund for the same injury or damage, unless the judgment cannot 
        be satisfied in whole or in part against the persons responsible 
        for the release of the harmful substance.  A person who has 
        filed a claim with the agency or its predecessor, the harmful 
        substance compensation board, may not file another claim with 
        the agency for the same eligible injury or damage, unless the 
        claim was inactivated by the agency or board as provided in 
        section 115B.32, subdivision 1. 
           (b) A person who has filed a claim with the agency or board 
        for an eligible injury or damage, and who has received and 
        accepted an award from the agency or board, is precluded from 
        bringing an action in court for the same eligible injury or 
        damage.  
           (c) A person who files a claim with the agency for personal 
        injury or property damage must include all known claims eligible 
        for compensation in one proceeding before the agency. 
           Sec. 19.  Minnesota Statutes 2002, section 115B.31, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SUBROGATION BY STATE.] The state is subrogated 
        to all the claimant's rights under statutory or common law to 
        recover losses compensated from the account fund from other 
        sources, including responsible persons as defined in section 
        115B.03.  The state may bring a subrogation action in its own 
        name or in the name of the claimant.  The state may not bring a 
        subrogation action against a person who was a party in a court 
        action by the claimant for the same eligible injury or damage, 
        unless the claimant dismissed the action prior to trial.  Money 
        recovered by the state under this subdivision must be deposited 
        in the account fund.  Nothing in sections 115B.25 to 115B.37 
        shall be construed to create a standard of recovery in a 
        subrogation action.  
           Sec. 20.  Minnesota Statutes 2002, section 115B.31, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SIMULTANEOUS CLAIM AND COURT ACTION PROHIBITED.] 
        A claimant may not commence a court action to recover for any 
        injury or damage for which the claimant seeks compensation from 
        the account fund during the time that a claim is pending before 
        the agency.  A person may not file a claim with the agency for 
        compensation for any injury or damage for which the claimant 
        seeks to recover in a pending court action.  The time for filing 
        a claim under section 115B.30 or the statute of limitations for 
        any civil action is suspended during the period of time that a 
        claimant is precluded from filing a claim or commencing an 
        action under this subdivision. 
           Sec. 21.  Minnesota Statutes 2002, section 115B.32, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FORM.] A claim for compensation from 
        the account fund must be filed with the agency in the form 
        required by the agency.  When a claim does not include all the 
        information required by subdivision 2 and applicable agency 
        rules, the agency staff shall notify the claimant of the absence 
        of the required information within 14 days of the filing of the 
        claim.  All required information must be received by the agency 
        not later than 60 days after the claimant received notice of its 
        absence or the claim will be inactivated and may not be 
        resubmitted for at least one year following the date of 
        inactivation.  The agency may decide not to inactivate a claim 
        under this subdivision if it finds serious extenuating 
        circumstances. 
           Sec. 22.  Minnesota Statutes 2002, section 115B.33, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STANDARD FOR PERSONAL INJURY.] The agency 
        shall grant compensation to a claimant who shows that it is more 
        likely than not that: 
           (1) the claimant suffers a medically verified injury that 
        is eligible for compensation from the account fund and that has 
        resulted in a compensable loss; 
           (2) the claimant has been exposed to a harmful substance; 
           (3) the release of the harmful substance from a facility 
        where the substance was placed or came to be located could 
        reasonably have resulted in the claimant's exposure to the 
        substance in the amount and duration experienced by the 
        claimant; and 
           (4) the injury suffered by the claimant can be caused or 
        significantly contributed to by exposure to the harmful 
        substance in an amount and duration experienced by the claimant. 
           Sec. 23.  Minnesota Statutes 2002, section 115B.34, is 
        amended to read: 
           115B.34 [COMPENSABLE LOSSES.] 
           Subdivision 1.  [PERSONAL INJURY LOSSES.] Losses 
        compensable by the account fund for personal injury are limited 
        to: 
           (1) medical expenses directly related to the claimant's 
        injury; 
           (2) up to two-thirds of the claimant's lost wages not to 
        exceed $2,000 per month or $24,000 per year; 
           (3) up to two-thirds of a self-employed claimant's lost 
        income, not to exceed $2,000 per month or $24,000 per year; 
           (4) death benefits to dependents which the agency shall 
        define by rule subject to the following conditions: 
           (i) the rule adopted by the agency must establish a 
        schedule of benefits similar to that established by section 
        176.111 and must not provide for the payment of benefits to 
        dependents other than those dependents defined in section 
        176.111; 
           (ii) the total benefits paid to all dependents of a 
        claimant must not exceed $2,000 per month; 
           (iii) benefits paid to a spouse and all dependents other 
        than children must not continue for a period longer than ten 
        years; 
           (iv) payment of benefits is subject to the limitations of 
        section 115B.36; and 
           (5) the value of household labor lost due to the claimant's 
        injury or disease, which must be determined in accordance with a 
        schedule established by the board by rule, not to exceed $2,000 
        per month or $24,000 per year. 
           Subd. 2.  [PROPERTY DAMAGE LOSSES.] (a) Losses compensable 
        by the account fund for property damage are limited to the 
        following losses caused by damage to the principal residence of 
        the claimant: 
           (1) the reasonable cost of replacing or decontaminating the 
        primary source of drinking water for the property not to exceed 
        the amount actually expended by the claimant or assessed by a 
        local taxing authority, if the department of health has 
        confirmed that the remedy provides safe drinking water and 
        advised that the water not be used for drinking or determined 
        that the replacement or decontamination of the source of 
        drinking water was necessary, up to a maximum of $25,000; 
           (2) losses incurred as a result of a bona fide sale of the 
        property at less than the appraised market value under 
        circumstances that constitute a hardship to the owner, limited 
        to 75 percent of the difference between the appraised market 
        value and the selling price, but not to exceed $25,000; and 
           (3) losses incurred as a result of the inability of an 
        owner in hardship circumstances to sell the property due to the 
        presence of harmful substances, limited to the increase in costs 
        associated with the need to maintain two residences, but not to 
        exceed $25,000.  
           (b) In computation of the loss under paragraph (a), clause 
        (3), the agency shall offset the loss by the amount of any 
        income received by the claimant from the rental of the property. 
           (c) For purposes of paragraph (a), the following 
        definitions apply: 
           (1) "appraised market value" means an appraisal of the 
        market value of the property disregarding any decrease in value 
        caused by the presence of a harmful substance in or on the 
        property; and 
           (2) "hardship" means an urgent need to sell the property 
        based on a special circumstance of the owner including 
        catastrophic medical expenses, inability of the owner to 
        physically maintain the property due to a physical or mental 
        condition, and change of employment of the owner or other member 
        of the owner's household requiring the owner to move to a 
        different location. 
           (d) Appraisals are subject to agency approval.  The agency 
        may adopt rules governing approval of appraisals, criteria for 
        establishing a hardship, and other matters necessary to 
        administer this subdivision. 
           Sec. 24.  Minnesota Statutes 2002, section 115B.36, is 
        amended to read: 
           115B.36 [AMOUNT AND FORM OF PAYMENT.] 
           If the agency decides to grant compensation, it shall 
        determine the net uncompensated loss payable to the claimant by 
        computing the total amount of compensable losses payable to the 
        claimant and subtracting the total amount of any compensation 
        received by the claimant for the same injury or damage from 
        other sources including, but not limited to, all forms of 
        insurance and social security and any emergency award made by 
        the agency.  The agency shall pay compensation in the amount of 
        the net uncompensated loss, provided that no claimant may 
        receive more than $250,000.  In the case of a death, the total 
        amount paid to all persons on behalf of the claimant may not 
        exceed $250,000. 
           Compensation from the account fund may be awarded in a lump 
        sum or in installments at the discretion of the agency. 
           Sec. 25.  Minnesota Statutes 2002, section 115B.40, 
        subdivision 4, is amended to read: 
           Subd. 4.  [QUALIFIED FACILITY NOT UNDER CLEANUP ORDER; 
        DUTIES.] (a) The owner or operator of a qualified facility that 
        is not subject to a cleanup order shall: 
           (1) complete closure activities at the facility, or enter 
        into a binding agreement with the commissioner to do so, as 
        provided in paragraph (e), within one year from the date the 
        owner or operator is notified by the commissioner under 
        subdivision 3 of the closure activities that are necessary to 
        properly close the facility in compliance with facility's 
        permit, closure orders, or enforcement agreement with the 
        agency, and with the solid waste rules in effect at the time the 
        facility stopped accepting waste; 
           (2) undertake or continue postclosure care at the facility 
        until the date of notice of compliance under subdivision 7; 
           (3) in the case of qualified facilities defined in section 
        115B.39, subdivision 2, paragraph (l), clause (1), transfer to 
        the commissioner of revenue for deposit in the solid waste 
        remediation fund established in section 115B.42 116.155 any 
        funds required for proof of financial responsibility under 
        section 116.07, subdivision 4h, that remain after facility 
        closure and any postclosure care and response action undertaken 
        by the owner or operator at the facility including, if proof of 
        financial responsibility is provided through a letter of credit 
        or other financial instrument or mechanism that does not 
        accumulate money in an account, the amount that would have 
        accumulated had the owner or operator utilized a trust fund, 
        less any amount used for closure, postclosure care, and response 
        action at the facility; and 
           (4) in the case of qualified facilities defined in section 
        115B.39, subdivision 2, paragraph (l), clause (2), transfer to 
        the commissioner of revenue for deposit in the solid waste 
        remediation fund established in section 115B.42 116.155 an 
        amount of cash that is equal to the sum of their approved 
        current contingency action cost estimate and the present value 
        of their approved estimated remaining postclosure care costs 
        required for proof of financial responsibility under section 
        116.07, subdivision 4h. 
           (b) The owner or operator of a qualified facility that is 
        not subject to a cleanup order shall:  
           (1) in the case of qualified facilities defined in section 
        115B.39, subdivision 2, paragraph (l), clause (1), provide the 
        commissioner with a copy of all applicable comprehensive general 
        liability insurance policies and other liability policies 
        relating to property damage, certificates, or other evidence of 
        insurance coverage held during the life of the facility; and 
           (2) enter into a binding agreement with the commissioner to:
           (i) in the case of qualified facilities defined in section 
        115B.39, subdivision 2, paragraph (l), clause (1), take any 
        actions necessary to preserve the owner or operator's rights to 
        payment or defense under insurance policies included in clause 
        (1); cooperate with the commissioner in asserting claims under 
        the policies; and, within 60 days of a request by the 
        commissioner, but no earlier than July 1, 1996, assign only 
        those rights under the policies related to environmental 
        response costs; 
           (ii) cooperate with the commissioner or other persons 
        acting at the direction of the commissioner in taking additional 
        environmental response actions necessary to address releases or 
        threatened releases and to avoid any action that interferes with 
        environmental response actions, including allowing entry to the 
        property and to the facility's records and allowing entry and 
        installation of equipment; and 
           (iii) refrain from developing or altering the use of 
        property described in any permit for the facility except after 
        consultation with the commissioner and in conformance with any 
        conditions established by the commissioner for that property, 
        including use restrictions, to protect public health and welfare 
        and the environment. 
           (c) The owner or operator of a qualified facility defined 
        in section 115B.39, subdivision 2, paragraph (l), clause (1), 
        that is a political subdivision may use a portion of any funds 
        established for response at the facility, which are available 
        directly or through a financial instrument or other financial 
        arrangement, for closure or postclosure care at the facility if 
        funds available for closure or postclosure care are inadequate 
        and shall assign the rights to any remainder to the commissioner.
           (d) The agreement required in paragraph (b), clause (2), 
        must be in writing and must apply to and be binding upon the 
        successors and assigns of the owner.  The owner shall record the 
        agreement, or a memorandum approved by the commissioner that 
        summarizes the agreement, with the county recorder or registrar 
        of titles of the county where the property is located. 
           (e) A binding agreement entered into under paragraph (a), 
        clause (1), may include a provision that the owner or operator 
        will reimburse the commissioner for the costs of closing the 
        facility to the standard required in that clause. 
           Sec. 26.  Minnesota Statutes 2002, section 115B.41, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ALLOCATION AND RECOVERY OF COSTS.] (a) A 
        person who is subject to the requirements in section 115B.40, 
        subdivision 4 or 5, paragraph (b), is responsible for all 
        environmental response costs incurred by the commissioner at or 
        related to the facility until the date of notice of compliance 
        under section 115B.40, subdivision 7.  The commissioner may use 
        any funds available for closure, postclosure care, and response 
        action established by the owner or operator.  If those funds are 
        insufficient or if the owner or operator fails to assign rights 
        to them to the commissioner, the commissioner may seek recovery 
        of environmental response costs against the owner or operator in 
        the county of Ramsey or in the county where the facility is 
        located or where the owner or operator resides.  
           (b) In an action brought under this subdivision in which 
        the commissioner prevails, the court shall award the 
        commissioner reasonable attorney fees and other litigation 
        expenses incurred by the commissioner to bring the action.  All 
        costs, fees, and expenses recovered under this subdivision must 
        be deposited in the solid waste remediation fund established in 
        section 115B.42 116.155. 
           Sec. 27.  Minnesota Statutes 2002, section 115B.41, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ENVIRONMENTAL RESPONSE COSTS; LIENS.] All 
        environmental response costs, including administrative and legal 
        expenses, incurred by the commissioner at a qualified facility 
        before the date of notice of compliance under section 115B.40, 
        subdivision 7, constitute a lien in favor of the state upon any 
        real property located in the state, other than homestead 
        property, owned by the owner or operator who is subject to the 
        requirements of section 115B.40, subdivision 4 or 5.  A lien 
        under this subdivision attaches when the environmental response 
        costs are first incurred and continues until the lien is 
        satisfied or becomes unenforceable as for an environmental lien 
        under section 514.672.  Notice, filing, and release of the lien 
        are governed by sections 514.671 to 514.676, except where those 
        requirements specifically are related to only cleanup action 
        expenses as defined in section 514.671.  Relative priority of a 
        lien under this subdivision is governed by section 514.672, 
        except that a lien attached to property that was included in any 
        permit for the solid waste disposal facility takes precedence 
        over all other liens regardless of when the other liens were or 
        are perfected.  Amounts received to satisfy all or a part of a 
        lien must be deposited in the solid waste remediation fund. 
           Sec. 28.  Minnesota Statutes 2002, section 115B.41, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LOCAL GOVERNMENT AID; OFFSET.] If an owner or 
        operator fails to comply with section 115B.40, subdivision 4, or 
        5, paragraph (b), fails to remit payment of environmental 
        response costs incurred by the commissioner before the date of 
        notice of compliance under section 115B.40, subdivision 7, and 
        is a local government unit, the commissioner may seek payment of 
        the costs from any state aid payments, except payments made 
        under section 115A.557, subdivision 1, otherwise due the local 
        government unit.  The commissioner of revenue, after being 
        notified by the commissioner that the local government unit has 
        failed to pay the costs and the amount due, shall pay an annual 
        proportionate amount of the state aid payment otherwise payable 
        to the local government unit into the solid waste remediation 
        fund that will, over a period of no more than five years, 
        satisfy the liability of the local government unit for the costs.
           Sec. 29.  Minnesota Statutes 2002, section 115B.42, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXPENDITURES.] Money in the fund may be spent by 
        The commissioner may spend money from the remediation fund under 
        section 116.155, subdivision 2, paragraph (a), clause (2), to: 
           (1) inspect permitted mixed municipal solid waste disposal 
        facilities to: 
           (i) evaluate the adequacy of final cover, slopes, 
        vegetation, and erosion control; 
           (ii) determine the presence and concentration of hazardous 
        substances, pollutants or contaminants, and decomposition gases; 
        and 
           (iii) determine the boundaries of fill areas; 
           (2) monitor and take, or reimburse others for, 
        environmental response actions, including emergency response 
        actions, at qualified facilities; 
           (3) acquire and dispose of property under section 115B.412, 
        subdivision 3; 
           (4) recover costs under section 115B.39; 
           (5) administer, including providing staff and 
        administrative support for, sections 115B.39 to 115B.445; 
           (6) enforce sections 115B.39 to 115B.445; 
           (7) subject to appropriation, administer the agency's 
        groundwater and solid waste management programs; 
           (8) pay for private water supply well monitoring and health 
        assessment costs of the commissioner of health in areas affected 
        by unpermitted mixed municipal solid waste disposal facilities; 
           (9) (8) reimburse persons under section 115B.43; 
           (10) (9) reimburse mediation expenses up to a total of 
        $250,000 annually or defense costs up to a total of $250,000 
        annually for third-party claims for response costs under state 
        or federal law as provided in section 115B.414; and 
           (11) (10) perform environmental assessments, up to 
        $1,000,000, at unpermitted mixed municipal solid waste disposal 
        facilities. 
           Sec. 30.  Minnesota Statutes 2002, section 115B.421, is 
        amended to read: 
           115B.421 [CLOSED LANDFILL INVESTMENT FUND.] 
           The closed landfill investment fund is established in the 
        state treasury.  The fund consists of money credited to the 
        fund, and interest and other earnings on money in the fund.  The 
        commissioner of finance shall transfer an initial amount of 
        $5,100,000 from the balance in the solid waste fund beginning in 
        fiscal year 2000 and shall continue to transfer $5,100,000 for 
        each following fiscal year, ceasing after 2003.  Beginning July 
        1, 2003, funds must be deposited as described in section 
        115B.445.  The fund shall be managed to maximize long-term gain 
        through the state board of investment.  Money in the fund may be 
        spent by the commissioner after fiscal year 2020 in accordance 
        with section 115B.42, subdivision 2, clauses (1) to (6) sections 
        115B.39 to 115B.444.  
           Sec. 31.  Minnesota Statutes 2002, section 115B.445, is 
        amended to read: 
           115B.445 [DEPOSIT OF PROCEEDS.] 
           All amounts paid to the state by an insurer pursuant to any 
        settlement under section 115B.443 or judgment under section 
        115B.444 must be deposited in the state treasury and 
        credited equally to the solid waste remediation fund and the 
        closed landfill investment fund. 
           [EFFECTIVE DATE.] This section is effective for all 
        proceeds paid after June 30, 2001. 
           Sec. 32.  Minnesota Statutes 2002, section 115B.48, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DRY CLEANER ENVIRONMENTAL RESPONSE AND 
        REIMBURSEMENT ACCOUNT; ACCOUNT.] "Dry cleaner environmental 
        response and reimbursement account" or "account" means the dry 
        cleaner environmental response and reimbursement account in the 
        remediation fund established in section sections 115B.49 and 
        116.155. 
           Sec. 33.  Minnesota Statutes 2002, section 115B.49, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] The dry cleaner 
        environmental response and reimbursement account is established 
        as an account in the state treasury remediation fund. 
           Sec. 34.  Minnesota Statutes 2002, section 115B.49, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EXPENDITURES.] (a) Money in the account may only 
        be used: 
           (1) for environmental response costs incurred by the 
        commissioner under section 115B.50, subdivision 1; 
           (2) for reimbursement of amounts spent by the commissioner 
        from the environmental response, compensation, and compliance 
        account remediation fund for expenses described in clause (1); 
           (3) for reimbursements under section 115B.50, subdivision 
        2; and 
           (4) for administrative costs of the commissioner of revenue.
           (b) Money in the account is appropriated to the 
        commissioner for the purposes of this subdivision.  The 
        commissioner shall transfer funds to the commissioner of revenue 
        sufficient to cover administrative costs pursuant to paragraph 
        (a), clause (4). 
           Sec. 35.  Minnesota Statutes 2002, section 115D.12, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FEES.] (a) Persons required by United States 
        Code, title 42, section 11023, to submit a toxic chemical 
        release form to the commission, and owners or operators of 
        facilities listed in section 299K.08, subdivision 3, shall pay a 
        pollution prevention fee of $150 for each toxic pollutant 
        reported released plus a fee based on the total pounds of toxic 
        pollutants reported as released from each facility.  Facilities 
        reporting less than 25,000 pounds annually of toxic pollutants 
        released per facility shall be assessed a fee of $500.  
        Facilities reporting annual releases of toxic pollutants in 
        excess of 25,000 pounds shall be assessed a graduated fee at the 
        rate of two cents per pound of toxic pollutants reported.  
           (b) Persons who generate more than 1,000 kilograms of 
        hazardous waste per month but who are not subject to the fee 
        under paragraph (a) must pay a pollution prevention fee of $500 
        per facility.  Hazardous waste as used in this paragraph has the 
        meaning given it in section 116.06, subdivision 11, and 
        Minnesota Rules, chapter 7045. 
           (c) Fees required under this subdivision must be paid to 
        the director by January 1 of each year.  The fees shall be 
        deposited in the state treasury and credited to the 
        environmental fund.  
           (d) The fees under this subdivision are exempt from section 
        16A.1285. 
           Sec. 36.  Minnesota Statutes 2002, section 116.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ORGANIZATION OF OFFICE.] The commissioner shall 
        organize the agency and employ such assistants and other 
        officers, employees and agents as the commissioner may deem 
        necessary to discharge the functions of the commissioner's 
        office, define the duties of such officers, employees and 
        agents, and delegate to them any of the commissioner's powers, 
        duties, and responsibilities, subject to the commissioner's 
        control and under such conditions as the commissioner may 
        prescribe.  The commissioner may also contract with, and enter 
        into grant agreements with, persons, firms, corporations, the 
        federal government and any agency or instrumentality thereof, 
        the water research center of the University of Minnesota or any 
        other instrumentality of such university, for doing any of the 
        work of the commissioner's office, and.  None of the provisions 
        of chapter 16C, relating to bids, shall apply to such contracts. 
           Sec. 37.  Minnesota Statutes 2002, 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 costs.  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.  Any money 
        collected under this paragraph shall be deposited in the 
        environmental fund. 
           (b) Notwithstanding paragraph (a), and section 16A.1285, 
        subdivision 2, 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 the 
        requirement to obtain a permit under subchapter V of the federal 
        Clean Air Act, United States Code, title 42, section 7401 et 
        seq., or section 116.081.  The annual fee shall be used to pay 
        for all direct and indirect reasonable costs, including attorney 
        general costs, required to develop and administer the permit 
        program requirements of subchapter V of the federal Clean Air 
        Act, United States Code, title 42, section 7401 et seq., and 
        sections of this chapter and the rules adopted under this 
        chapter related to air contamination and noise.  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 an air quality account in the environmental fund 
        and must be used solely for the activities listed in paragraph 
        (b).  
           (f) Persons who wish to construct or expand a facility may 
        offer to reimburse the agency for the costs of staff overtime or 
        consultant services needed to expedite permit review.  The 
        reimbursement shall be in addition to fees imposed by law or 
        rule.  When the agency determines that it needs additional 
        resources to review the permit application in an expedited 
        manner, and that expediting the review would not disrupt 
        permitting program priorities, the agency may accept the 
        reimbursement.  Reimbursements accepted by the agency are 
        appropriated to the agency for the purpose of reviewing the 
        permit application.  Reimbursement by a permit applicant shall 
        precede and not be contingent upon issuance of a permit and 
        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. 
           (g) The fees under this subdivision are exempt from section 
        16A.1285. 
           Sec. 38.  Minnesota Statutes 2002, section 116.07, 
        subdivision 4h, is amended to read: 
           Subd. 4h.  [FINANCIAL RESPONSIBILITY RULES.] (a) The agency 
        shall adopt rules requiring the operator or owner of a solid 
        waste disposal facility to submit to the agency proof of the 
        operator's or owner's financial capability to provide reasonable 
        and necessary response during the operating life of the facility 
        and for 30 years after closure for a mixed municipal solid waste 
        disposal facility or for a minimum of 20 years after closure, as 
        determined by agency rules, for any other solid waste disposal 
        facility, and to provide for the closure of the facility and 
        postclosure care required under agency rules.  Proof of 
        financial responsibility is required of the operator or owner of 
        a facility receiving an original permit or a permit for 
        expansion after adoption of the rules.  Within 180 days of the 
        effective date of the rules or by July 1, 1987, whichever is 
        later, proof of financial responsibility is required of an 
        operator or owner of a facility with a remaining capacity of 
        more than five years or 500,000 cubic yards that is in operation 
        at the time the rules are adopted.  Compliance with the rules 
        and the requirements of paragraph (b) is a condition of 
        obtaining or retaining a permit to operate the facility. 
           (b) A municipality, as defined in section 475.51, 
        subdivision 2, including a sanitary district, that owns or 
        operates a solid waste disposal facility that was in operation 
        on May 15, 1989, may meet its financial responsibility for all 
        or a portion of the contingency action portion of the reasonable 
        and necessary response costs at the facility by pledging its 
        full faith and credit to meet its responsibility. 
           The pledge must be made in accordance with the requirements 
        in chapter 475 for issuing bonds of the municipality, and the 
        following additional requirements: 
           (1) The governing body of the municipality shall enact an 
        ordinance that clearly accepts responsibility for the costs of 
        contingency action at the facility and that reserves, during the 
        operating life of the facility and for the time period required 
        in paragraph (a) after closure, a portion of the debt limit of 
        the municipality, as established under section 475.53 or other 
        law, that is equal to the total contingency action costs. 
           (2) The municipality shall require that all collectors that 
        haul to the facility implement a plan for reducing solid waste 
        by using volume-based pricing, recycling incentives, or other 
        means. 
           (3) When a municipality opts to meet a portion of its 
        financial responsibility by relying on its authority to issue 
        bonds, it shall also begin setting aside in a dedicated 
        long-term care trust fund money that will cover a portion of the 
        potential contingency action costs at the facility, the amount 
        to be determined by the agency for each facility based on at 
        least the amount of waste deposited in the disposal facility 
        each year, and the likelihood and potential timing of conditions 
        arising at the facility that will necessitate response action.  
        The agency may not require a municipality to set aside more than 
        five percent of the total cost in a single year. 
           (4) A municipality shall have and consistently maintain an 
        investment grade bond rating as a condition of using bonding 
        authority to meet financial responsibility under this section. 
           (5) The municipality shall file with the commissioner of 
        revenue its consent to have the amount of its contingency action 
        costs deducted from state aid payments otherwise due the 
        municipality and paid instead to the environmental response, 
        compensation, and compliance account remediation fund created in 
        section 115B.20 116.155, if the municipality fails to conduct 
        the contingency action at the facility when ordered by the 
        agency.  If the agency notifies the commissioner that the 
        municipality has failed to conduct contingency action when 
        ordered by the agency, the commissioner shall deduct the amounts 
        indicated by the agency from the state aids in accordance with 
        the consent filed with the commissioner. 
           (6) The municipality shall file with the agency written 
        proof that it has complied with the requirements of paragraph 
        (b). 
           (c) The method for proving financial responsibility under 
        paragraph (b) may not be applied to a new solid waste disposal 
        facility or to expansion of an existing facility, unless the 
        expansion is a vertical expansion.  Vertical expansions of 
        qualifying existing facilities cannot be permitted for a 
        duration of longer than three years. 
           Sec. 39.  [116.155] [REMEDIATION FUND.] 
           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 accounts described in subdivisions 4 
        and 5. 
           Subd. 2.  [APPROPRIATION.] (a) Money in the general portion 
        of the remediation fund is appropriated to the agency and the 
        commissioners of agriculture and natural resources for the 
        following purposes: 
           (1) to take actions related to releases of hazardous 
        substances, or pollutants or contaminants as provided in section 
        115B.20; 
           (2) to take actions related to releases of hazardous 
        substances, or pollutants or contaminants, at and from qualified 
        landfill facilities as provided in section 115B.42, subdivision 
        2; 
           (3) to provide technical and other assistance under 
        sections 115B.17, subdivision 14, 115B.175 to 115B.179, and 
        115C.03, subdivision 9; 
           (4) for corrective actions to address incidents involving 
        agricultural chemicals, including related administrative, 
        enforcement, and cost recovery actions pursuant to chapter 18D; 
        and 
           (5) together with any amount approved for transfer to the 
        agency from the petroleum tank fund by the commissioner of 
        finance, to take actions related to releases of petroleum as 
        provided under section 115C.08. 
           (b) The commissioner of finance shall allocate the amounts 
        available in any biennium to the agency, and the commissioners 
        of agriculture and natural resources for the purposes provided 
        in this subdivision based upon work plans submitted by the 
        agency and the commissioners of agriculture and natural 
        resources, and may adjust those allocations upon submittal of 
        revised work plans.  Copies of the work plans shall be submitted 
        to the chairs of the environment and environment finance 
        committees of the senate and house of representatives. 
           Subd. 3.  [REVENUES.] The following revenues shall be 
        deposited in the general portion of the remediation fund: 
           (1) response costs and natural resource damages related to 
        releases of hazardous substances, or pollutants or contaminants, 
        recovered under sections 115B.17, subdivisions 6 and 7, 
        115B.443, 115B.444, or any other law; 
           (2) money paid to the agency or the agriculture department 
        by voluntary parties who have received technical or other 
        assistance under sections 115B.17, subdivision 14, 115B.175 to 
        115B.179, and 115C.03, subdivision 9; 
           (3) money received in the form of gifts, grants, 
        reimbursement, or appropriation from any source for any of the 
        purposes provided in subdivision 2, except federal grants; and 
           (4) interest accrued on the fund. 
           Subd. 4.  [DRY CLEANER ENVIRONMENTAL RESPONSE AND 
        REIMBURSEMENT ACCOUNT.] The dry cleaner environmental response 
        and reimbursement account is as described in sections 115B.47 to 
        115B.51. 
           Subd. 5.  [METROPOLITAN LANDFILL CONTINGENCY ACTION TRUST 
        ACCOUNT.] The metropolitan landfill contingency action trust 
        account is as described in section 473.845. 
           Subd. 6.  [OTHER SOURCES OF THE FUND.] The remediation fund 
        shall also be supported by transfers as may be authorized by the 
        legislature from time to time from the environmental fund. 
           Sec. 40.  Minnesota Statutes 2002, section 116.994, is 
        amended to read: 
           116.994 [SMALL BUSINESS ENVIRONMENTAL IMPROVEMENT LOAN 
        ACCOUNT ACCOUNTING.] 
           The small business environmental improvement loan account 
        is established in the environmental fund.  Repayments of loans 
        made under section 116.993 must be credited to this account the 
        environmental fund.  This account replaces the small business 
        environmental loan account in Minnesota Statutes 1996, section 
        116.992, and the hazardous waste generator loan account in 
        Minnesota Statutes 1996, section 115B.224.  The account balances 
        and pending repayments from the small business environmental 
        loan account and the hazardous waste generator account will be 
        credited to this new account.  Money deposited in the account 
        fund under section 116.993 is appropriated to the commissioner 
        for loans under this section 116.993. 
           Sec. 41.  Minnesota Statutes 2002, section 116C.834, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COSTS.] All costs incurred by the state to 
        carry out its responsibilities under the compact and under 
        sections 116C.833 to 116C.843 shall be paid by generators of 
        low-level radioactive waste in this state through fees assessed 
        by the pollution control agency.  Fees may be reasonably 
        assessed on the basis of volume or degree of hazard of the waste 
        produced by a generator.  Costs for which fees may be assessed 
        include, but are not limited to:  
           (1) the state contribution required to join the compact; 
           (2) the expenses of the Commission member and state agency 
        costs incurred to support the work of the Interstate Commission; 
        and 
           (3) regulatory costs. 
           The fees are exempt from section 16A.1285.  
           Sec. 42.  Minnesota Statutes 2002, section 297H.13, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEPOSIT OF REVENUES.] The revenues derived 
        from the taxes imposed on waste management services under this 
        chapter, less the costs to the department of revenue for 
        administering the tax under this chapter, shall be deposited by 
        the commissioner of revenue in the state treasury. 
           The amounts retained by the department of revenue shall be 
        deposited in a separate revenue department fund which is hereby 
        created.  Money in this fund is hereby appropriated, up to a 
        maximum annual amount of $200,000, to the commissioner of 
        revenue for the costs incurred in administration of the solid 
        waste management tax under this chapter. 
           Sec. 43.  Minnesota Statutes 2002, section 297H.13, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ALLOCATION OF REVENUES.] (a) $22,000,000, or 50 
        percent, whichever is greater, of the amounts remitted under 
        this chapter must be credited to the solid waste environmental 
        fund established in section 115B.42 16A.531, subdivision 1. 
           (b) The remainder must be deposited into the general fund. 
           Sec. 44.  Minnesota Statutes 2002, section 325E.10, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCOPE.] For the purposes of sections 
        325E.11 to 325E.113 325E.112 and this section, the terms defined 
        in this section have the meanings given them. 
           Sec. 45.  Minnesota Statutes 2002, section 469.175, 
        subdivision 7, is amended to read: 
           Subd. 7.  [CREATION OF HAZARDOUS SUBSTANCE SUBDISTRICT; 
        RESPONSE ACTIONS.] (a) An authority which is creating or has 
        created a tax increment financing district may establish within 
        the district a hazardous substance subdistrict upon the notice 
        and after the discussion, public hearing, and findings required 
        for approval of or modification to the original plan.  The 
        geographic area of the subdistrict is made up of any parcels in 
        the district designated for inclusion by the municipality or 
        authority that are designated hazardous substance sites, and any 
        additional parcels in the district designated for inclusion that 
        are contiguous to the hazardous substance sites, including 
        parcels that are contiguous to the site except for the 
        interposition of a right-of-way.  Before or at the time of 
        approval of the tax increment financing plan or plan 
        modification providing for the creation of the hazardous 
        substance subdistrict, the authority must make the findings 
        under paragraphs (b) to (d), and set forth in writing the 
        reasons and supporting facts for each. 
           (b) Development or redevelopment of the site, in the 
        opinion of the authority, would not reasonably be expected to 
        occur solely through private investment and tax increment 
        otherwise available, and therefore the hazardous substance 
        district is deemed necessary. 
           (c) Other parcels that are not designated hazardous 
        substance sites are expected to be developed together with a 
        designated hazardous substance site.  
           (d) The subdistrict is not larger than, and the period of 
        time during which increments are elected to be received is not 
        longer than, that which is necessary in the opinion of the 
        authority to provide for the additional costs due to the 
        designated hazardous substance site. 
           (e) Upon request by an authority that has incurred expenses 
        for removal or remedial actions to implement a development 
        response action plan, the attorney general may: 
           (1) bring a civil action on behalf of the authority to 
        recover the expenses, including administrative costs and 
        litigation expenses, under section 115B.04 or other law; or 
           (2) assist the authority in bringing an action as described 
        in clause (1), by providing legal and technical advice, 
        intervening in the action, or other appropriate assistance. 
        The decision to participate in any action to recover expenses is 
        at the discretion of the attorney general. 
           (f) If the attorney general brings an action as provided in 
        paragraph (e), clause (1), the authority shall certify its 
        reasonable and necessary expenses incurred to implement the 
        development response action plan and shall cooperate with the 
        attorney general as required to effectively pursue the action.  
        The certification by the authority is prima facie evidence that 
        the expenses are reasonable and necessary.  The attorney general 
        may deduct litigation expenses incurred by the attorney general 
        from any amounts recovered in an action brought under paragraph 
        (e), clause (1).  The authority shall reimburse the attorney 
        general for litigation expenses not recovered in an action under 
        paragraph (e), clause (1), but only from the additional tax 
        increment required to be used as described in section 469.176, 
        subdivision 4e.  The authority must reimburse the attorney 
        general for litigation expenses incurred to assist in bringing 
        an action under paragraph (e), clause (2), but only from amounts 
        recovered by the authority in an action or, if the amounts are 
        insufficient, from the additional tax increment required to be 
        used as described in section 469.176, subdivision 4e.  All money 
        recovered or paid to the attorney general for litigation 
        expenses under this paragraph shall be paid to the general fund 
        of the state for deposit to the account of the attorney 
        general.  For the purposes of this section, "litigation 
        expenses" means attorney fees and costs of discovery and other 
        preparation for litigation. 
           (g) The authority shall reimburse the pollution control 
        agency for its administrative expenses incurred to review and 
        approve a development action response plan.  The authority must 
        reimburse the pollution control agency for expenses incurred for 
        any services rendered to the attorney general to support the 
        attorney general in actions brought or assistance provided under 
        paragraph (e), but only from amounts recovered by the authority 
        in an action brought under paragraph (e) or from the additional 
        tax increment required to be used as described in section 
        469.176, subdivision 4e.  All money paid to the pollution 
        control agency under this paragraph shall be deposited in the 
        environmental response, compensation and compliance remediation 
        fund. 
           (h) Actions taken by an authority consistent with a 
        development response action plan are deemed to be authorized 
        response actions for the purpose of section 115B.17, subdivision 
        12.  An authority that takes actions consistent with a 
        development response action plan qualifies for the defenses 
        available under sections 115B.04, subdivision 11, and 115B.05, 
        subdivision 9. 
           (i) All money recovered by an authority in an action 
        brought under paragraph (e) in excess of the amounts paid to the 
        attorney general and the pollution control agency must be 
        treated as excess increments and be distributed as provided in 
        section 469.176, subdivision 2, clause (4), to the extent the 
        removal and remedial actions were initially financed with 
        increment revenues. 
           Sec. 46.  Minnesota Statutes 2002, section 473.843, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DISPOSITION OF PROCEEDS.] After reimbursement to 
        the department of revenue for costs incurred in administering 
        this section, The proceeds of the fees imposed under this 
        section, including interest and penalties, must be deposited as 
        follows:  
           (1) three-fourths of the proceeds must be deposited in the 
        environmental fund for metropolitan landfill abatement account 
        established for the purposes described in section 473.844; and 
           (2) one-fourth of the proceeds must be deposited in the 
        metropolitan landfill contingency action trust account in the 
        remediation fund established in section sections 116.155 and 
        473.845. 
           Sec. 47.  Minnesota Statutes 2002, section 473.844, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT; PURPOSES.] The metropolitan 
        landfill abatement account is money in the environmental fund in 
        order for landfill abatement must be used to reduce to the 
        greatest extent feasible and prudent the need for and practice 
        of land disposal of mixed municipal solid waste in the 
        metropolitan area.  The account This money consists of revenue 
        deposited in the account environmental fund under section 
        473.843, subdivision 2, clause (1), and interest earned on 
        investment of this money in the account.  All repayments to 
        loans made under this section must be credited to the 
        account environmental fund.  The landfill abatement money in the 
        account environmental fund may be spent only for purposes of 
        metropolitan landfill abatement as provided in subdivision 1a 
        and only upon appropriation by the legislature. 
           Sec. 48.  Minnesota Statutes 2002, section 473.845, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] The metropolitan landfill 
        contingency action trust fund account is an expendable trust 
        fund account in the state treasury remediation fund.  The fund 
        account consists of revenue deposited in the fund under section 
        473.843, subdivision 2, clause (2); amounts recovered under 
        subdivision 7; and interest earned on investment of money in the 
        fund.  
           Sec. 49.  Minnesota Statutes 2002, section 473.845, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EXPENDITURES FROM THE FUND CONTINGENCY ACTIONS 
        AND REIMBURSEMENT.] Money in the fund account is appropriated to 
        the agency for expenditure for any of the following: 
           (1) to take reasonable and necessary expenses actions for 
        closure and postclosure care of a mixed municipal solid waste 
        disposal facility in the metropolitan area for a 30-year period 
        after closure, if the agency determines that the operator or 
        owner will not take the necessary actions requested by the 
        agency for closure and postclosure in the manner and within the 
        time requested; 
           (2) to take reasonable and necessary response actions and 
        postclosure costs care actions at a mixed municipal solid waste 
        disposal facility in the metropolitan area that has been closed 
        for 30 years in compliance with the closure and postclosure 
        rules of the agency; 
           (3) reimbursement to reimburse a local government unit for 
        costs incurred over $400,000 under a work plan approved by the 
        commissioner of the agency to remediate methane at a closed 
        disposal facility owned by the local government unit; or 
           (4) reasonable and necessary response costs at an 
        unpermitted facility for mixed municipal solid waste disposal in 
        the metropolitan area that was permitted by the agency for 
        disposal of sludge ash from a wastewater treatment facility. 
           Sec. 50.  Minnesota Statutes 2002, section 473.845, 
        subdivision 7, is amended to read: 
           Subd. 7.  [RECOVERY OF EXPENSES.] When the agency incurs 
        expenses for response actions at a facility, the agency is 
        subrogated to any right of action which the operator or owner of 
        the facility may have against any other person for the recovery 
        of the expenses.  The attorney general may bring an action to 
        recover amounts spent by the agency under this section from 
        persons who may be liable for them.  Amounts recovered, 
        including money paid under any agreement, stipulation, or 
        settlement must be deposited in the metropolitan landfill 
        contingency action account in the remediation fund created under 
        section 116.155.  
           Sec. 51.  Minnesota Statutes 2002, section 473.845, 
        subdivision 8, is amended to read: 
           Subd. 8.  [CIVIL PENALTIES.] The civil penalties of 
        sections 115.071 and 116.072 apply to any person in violation of 
        this section.  All money recovered by the state under any 
        statute or rule related to the regulation of solid waste in the 
        metropolitan area, including civil penalties and money paid 
        under any agreement, stipulation, or settlement, shall be 
        deposited in the fund.  
           Sec. 52.  Minnesota Statutes 2002, section 473.846, is 
        amended to read: 
           473.846 [REPORT TO LEGISLATURE.] 
           The agency and the director shall submit to the senate 
        finance committee, the house ways and means committee, and the 
        environment and natural resources committees of the senate and 
        house of representatives, the finance division of the senate 
        committee on environment and natural resources, and the house of 
        representatives committee on environment and natural resources 
        finance separate reports describing the activities for which 
        money from the for landfill abatement account and contingency 
        action trust fund has been spent under sections 473.844 and 
        473.845.  The agency shall report by November 1 of each year on 
        expenditures during its previous fiscal year.  The director 
        shall report on expenditures during the previous calendar year 
        and must incorporate its report in the report required by 
        section 115A.411, due July 1 of each odd-numbered year.  The 
        director shall make recommendations to the environment and 
        natural resources committees of the senate and house of 
        representatives, the finance division of the senate committee on 
        environment and natural resources, and the house of 
        representatives committee on environment and natural resources 
        finance on the future management and use of the metropolitan 
        landfill abatement account. 
           Sec. 53.  [INCREASE TO WATER QUALITY PERMIT FEES.] 
           (a) The pollution control agency shall collect water 
        quality permit fees that reflect the fees in Minnesota Rules, 
        part 7002.0310, and Laws 2002, chapter 374, article 6, section 
        8, with the application fee in paragraph (b) increased from $240 
        to $350. 
           (b) The increased permit fee is effective July 1, 2003.  
        The agency shall adopt amended water quality permit fee rules 
        incorporating the permit fee increase in paragraph (a) under 
        Minnesota Statutes, section 14.389.  The pollution control 
        agency shall begin collecting the increased permit fee on July 
        1, 2003, even if the rule adoption process has not been 
        initiated or completed.  Notwithstanding Minnesota Statutes, 
        section 14.18, subdivision 2, the increased permit fee 
        reflecting the permit fee increase in paragraph (a) and the rule 
        amendments incorporating that permit fee increase do not require 
        further legislative approval. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 54.  [INCREASE TO HAZARDOUS WASTE FEES.] 
           (a) The pollution control agency shall collect hazardous 
        waste fees that reflect the fee formula in Minnesota Rules, part 
        7046.0060, increased by an addition of $2,000,000 to the 
        adjusted fiscal year target described in Step 2 of Minnesota 
        Rules, part 7046.0060. 
           (b) The increased fees are effective January 1, 2004.  The 
        agency shall adopt an amended hazardous waste fee formula 
        incorporating the increase in paragraph (a) under Minnesota 
        Statutes, section 14.389.  The pollution control agency shall 
        begin collecting the increased permit fees on January 1, 2004, 
        even if the rule adoption process has not been initiated or 
        completed.  Notwithstanding Minnesota Statutes, section 14.18, 
        subdivision 2, the increased fees reflecting the fee increases 
        in paragraph (a) and the rule amendments incorporating those 
        permit fee increases do not require further legislative approval.
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 55.  [TRANSFER OF FUND BALANCES.] 
           Subdivision 1.  [ENVIRONMENTAL RESPONSE, COMPENSATION, AND 
        COMPLIANCE ACCOUNT.] All amounts remaining in the environmental 
        response, compensation, and compliance account are transferred 
        to the remediation fund created under Minnesota Statutes, 
        section 116.155. 
           Subd. 2.  [SOLID WASTE FUND.] $22,641,000 of the balance of 
        the solid waste fund is transferred to the environmental fund 
        created in Minnesota Statutes, section 16A.531, subdivision 1.  
        Any remaining balance in the solid waste fund is transferred to 
        the remediation fund created under Minnesota Statutes, section 
        116.155. 
           Subd. 3.  [DRY CLEANER ENVIRONMENTAL RESPONSE AND 
        REIMBURSEMENT ACCOUNT.] All amounts remaining in the dry cleaner 
        environmental response and reimbursement account are transferred 
        to the dry cleaner environmental response and reimbursement 
        account in the remediation fund created under Minnesota 
        Statutes, sections 115B.49 and 116.155. 
           Subd. 4.  [METROPOLITAN LANDFILL CONTINGENCY ACTION 
        FUND.] All amounts remaining in the metropolitan landfill 
        contingency action fund are transferred to the metropolitan 
        landfill contingency action trust account in the remediation 
        fund created under Minnesota Statutes, sections 116.155 and 
        473.845. 
           Sec. 56.  [REPEALER.] 
           Minnesota Statutes 2002, sections 115B.02, subdivision 1a; 
        115B.42, subdivision 1; 297H.13, subdivisions 3 and 4; 325E.112, 
        subdivision 3; 325E.113; and 473.845, subdivision 4, are 
        repealed. 

                                   ARTICLE 3 
                       AGRICULTURE AND RURAL DEVELOPMENT 
        Section 1.  [AGRICULTURE AND RURAL DEVELOPMENT APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or another named fund, to 
        the agencies and for the purposes specified in this act, to be 
        available for the fiscal years indicated for each purpose.  The 
        figures "2004" and "2005," where used in this act, mean that the 
        appropriation or appropriations listed under them are available 
        for the year ending June 30, 2004, or June 30, 2005, 
        respectively.  The term "the first year" means the year ending 
        June 30, 2004, and the term "the second year" means the year 
        ending June 30, 2005. 
                                SUMMARY BY FUND
                                  2004          2005           TOTAL
        General            $   46,231,000 $   44,597,000 $   90,828,000
        Remediation               353,000        353,000        706,000
        Agricultural              200,000        200,000        400,000
        TOTAL              $   46,784,000 $   45,150,000 $   91,934,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2004         2005 
        Sec. 2.  DEPARTMENT OF AGRICULTURE
        Subdivision 1.  Total  
        Appropriation                         42,181,000     40,547,000 
                      Summary by Fund
        General              41,828,000    40,194,000
        Remediation             353,000       353,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivision. 
        Subd. 2.  Protection Services
             9,138,000      9,138,000 
                      Summary by Fund
        General               8,785,000     8,785,000
        Remediation             353,000       353,000
        $353,000 the first year and $353,000 
        the second year are from the 
        remediation fund for administrative 
        funding for the voluntary cleanup 
        program. 
        Subd. 3.  Agricultural Marketing
        and Development
             5,256,000      5,256,000 
        $71,000 the first year and $71,000 the 
        second year are for transfer to the 
        Minnesota grown matching account and 
        may be used as grants for Minnesota 
        grown promotion under Minnesota 
        Statutes, section 17.109.  Grants may 
        be made for one year.  Notwithstanding 
        Minnesota Statutes, section 16A.28, the 
        appropriations encumbered under 
        contract on or before June 30, 2005, 
        for Minnesota grown grants in this 
        subdivision are available until June 
        30, 2007. 
        $80,000 the first year and $80,000 the 
        second year are for grants to farmers 
        for demonstration projects involving 
        sustainable agriculture as authorized 
        in Minnesota Statutes, section 17.116.  
        Of the amount for grants, up to $20,000 
        may be used for dissemination of 
        information about the demonstration 
        projects.  Notwithstanding Minnesota 
        Statutes, section 16A.28, the 
        appropriations encumbered under 
        contract on or before June 30, 2005, 
        for sustainable agriculture grants in 
        this subdivision are available until 
        June 30, 2007. 
        The commissioner shall continue the Ag 
        in the Classroom program until the 
        program is transferred to a new entity. 
        The commissioner and the Minnesota Ag 
        in the Classroom board of directors, in 
        consultation with farm groups and 
        individuals and organizations in the 
        education community, shall identify an 
        appropriate entity in the private 
        sector or the public sector to sponsor, 
        house, and carry on the staffing and 
        function of the Ag in the Classroom 
        program.  Once an entity is identified 
        and arrangements for the transfer 
        finalized, the commissioner may release 
        educational and program materials to 
        the new entity.  
        The commissioner may reduce 
        appropriations for the administration 
        of activities in this subdivision by up 
        to $135,000 each year and transfer the 
        amounts reduced to activities under 
        subdivision 5. 
        Subd. 4.  Value-Added Agricultural Products
            22,962,000     21,428,000 
        $22,962,000 the first year and 
        $21,428,000 the second year are for 
        ethanol producer payments under 
        Minnesota Statutes, section 41A.09.  
        Payments for eligible ethanol 
        production in fiscal years 2004 and 
        2005 shall be disbursed at the rate of 
        $0.13 per gallon, and the base 
        appropriation amounts for scheduled 
        payments in fiscal years 2006 and 2007 
        must be calculated as the projected 
        eligible production in those years 
        times a payment rate of $0.13 per 
        gallon.  If the total amount for which 
        all producers are eligible in a quarter 
        exceeds the amount available for 
        payments, the commissioner shall make 
        payments on a pro rata basis.  If the 
        appropriation exceeds the total amount 
        for which all producers are eligible in 
        a fiscal year for scheduled payments 
        and for deficiencies in payments during 
        previous fiscal years, the balance in 
        the appropriation is available to the 
        commissioner for value-added 
        agricultural programs including the 
        value-added agricultural product 
        processing and marketing grant program 
        under Minnesota Statutes, section 
        17.101, subdivision 5.  The 
        appropriation remains available until 
        spent. 
        Subd. 5.  Administration and
        Financial Assistance   
             4,825,000      4,725,000 
        $1,005,000 the first year and 
        $1,005,000 the second year are for 
        continuation of the dairy development 
        and profitability enhancement and dairy 
        business planning grant programs 
        established under Laws 1997, chapter 
        216, section 7, subdivision 2 and Laws 
        2001, First Special Session chapter 2, 
        section 9, subdivision 2.  The 
        commissioner may allocate the available 
        sums among permissible activities, 
        including efforts to improve the 
        quality of milk produced in the state, 
        in the proportions which the 
        commissioner deems most beneficial to 
        Minnesota's dairy farmers.  The 
        commissioner must submit a work plan 
        detailing plans for expenditures under 
        this program to the chairs of the house 
        and senate committees dealing with 
        agricultural policy and budget on or 
        before the start of each fiscal year.  
        If significant changes are made to the 
        plans in the course of the year, the 
        commissioner must notify the chairs. 
        $50,000 the first year and $50,000 the 
        second year are for the Northern Crops 
        Institute.  These appropriations may be 
        spent to purchase equipment. 
        $19,000 the first year and $19,000 the 
        second year are for a grant to the 
        Minnesota livestock breeders 
        association. 
        $2,000 the first year and $1,000 the 
        second year are for family farm 
        security interest payment adjustments.  
        If the appropriation for either year is 
        insufficient, the appropriation for the 
        other year is available for it.  No new 
        loans may be approved in fiscal year 
        2004 or 2005. 
        $100,000 is for predesign and design of 
        the agriculture and food sciences 
        academy.  The commissioner shall 
        consult with the Minnesota Agriculture 
        Education Leadership Council on the 
        predesign and design of the Agriculture 
        and Food Sciences Academy. 
        Beginning in fiscal year 2004, all aid 
        payments to county and district 
        agricultural societies and associations 
        under Minnesota Statutes, section 
        38.02, subdivision 1, shall be 
        disbursed not later than July 15.  
        These payments are the amount of aid 
        owed by the state for an annual fair 
        held in the previous calendar year. 
        Sec. 3.  BOARD OF ANIMAL  
        HEALTH                                 2,803,000      2,803,000 
        $200,000 the first year and $200,000 
        the second year are for a program to 
        control paratuberculosis ("Johne's 
        disease") in domestic bovine herds.  
        Money from this appropriation may be 
        used to validate a molecular diagnostic 
        test in cooperation with the Minnesota 
        veterinary diagnostic laboratory. 
        $80,000 the first year and $80,000 the 
        second year are for a program to 
        investigate the avian pneumovirus 
        disease and to identify the infected 
        flocks.  This appropriation must be 
        matched on a dollar-for-dollar or 
        in-kind basis with nonstate sources and 
        is in addition to money currently 
        designated for turkey disease 
        research.  Costs of blood sample 
        collection, handling, and 
        transportation, in addition to costs 
        associated with early diagnosis tests 
        and the expenses of vaccine research 
        trials, may be credited to the match. 
        $400,000 the first year and $400,000 
        the second year are for the purposes of 
        cervidae inspection as authorized in 
        Minnesota Statutes, section 17.452. 
        Sec. 4.  AGRICULTURAL UTILIZATION
        RESEARCH INSTITUTE                     1,800,000      1,800,000
                      Summary by Fund
        General               1,600,000     1,600,000
        Agricultural            200,000       200,000*
        (The preceding text beginning "Agriculture" was
        indicated as vetoed by the governor.)
        The board shall allocate at least 50 
        percent of the pesticide reduction 
        options appropriation to field crop 
        research. 
           Sec. 5.  Minnesota Statutes 2002, section 17.451, is 
        amended to read: 
           17.451 [DEFINITIONS.] 
           Subdivision 1.  [APPLICABILITY.] The definitions in this 
        section apply to this section and section 17.452. 
           Subd. 1a.  [CERVIDAE.] "Cervidae" means animals that are 
        members of the family Cervidae and includes, but is not limited 
        to, white-tailed deer, mule deer, red deer, elk, moose, caribou, 
        reindeer, and muntjac. 
           Subd. 2.  [FARMED CERVIDAE.] "Farmed cervidae" means 
        members of the Cervidae family that are: 
           (1) raised for the any purpose of producing fiber, meat, or 
        animal by-products, as pets, or as breeding stock; and 
           (2) registered in a manner approved by the board of animal 
        health.  
           Subd. 3.  [OWNER.] "Owner" means a person who owns or is 
        responsible for the raising of farmed cervidae. 
           Subd. 4.  [HERD.] "Herd" means: 
           (1) all cervidae maintained on common ground for any 
        purpose; or 
           (2) all cervidae under common ownership or supervision, 
        geographically separated, but that have an interchange or 
        movement of animals without regard to whether the animals are 
        infected with or exposed to diseases. 
           Sec. 6.  Minnesota Statutes 2002, section 17.452, 
        subdivision 8, is amended to read: 
           Subd. 8.  [SLAUGHTER.] Farmed cervidae must be slaughtered 
        and inspected in accordance with chapters 31 and 31A or the 
        United States Department of Agriculture voluntary program for 
        exotic animals, Code of Federal Regulations, title 9, part 352. 
           Sec. 7.  Minnesota Statutes 2002, section 17.452, 
        subdivision 10, is amended to read: 
           Subd. 10.  [FENCING.] (a) Farmed cervidae must be confined 
        in a manner designed to prevent escape.  Fencing must meet the 
        requirements in this subdivision unless an alternative is 
        specifically approved by the commissioner.  The board of animal 
        health shall follow the guidelines established by the United 
        States Department of Agriculture in the program for eradication 
        of bovine tuberculosis.  Perimeter fencing must be of the 
        following heights: 
           (1) for fences constructed before August 1, 1995, for 
        farmed deer, at least 75 inches; 
           (2) for fences constructed before August 1, 1995, for 
        farmed elk, at least 90 inches; and 
           (3) for fences constructed on or after August 1, 1995, for 
        all farmed cervidae, at least 96 inches. 
           (b) The farmed cervidae advisory committee shall establish 
        guidelines designed to prevent the escape of farmed cervidae and 
        other appropriate management practices.  All perimeter fences 
        for farmed cervidae must be at least 96 inches in height and be 
        constructed and maintained in a way that prevents the escape of 
        farmed cervidae or entry into the premises by free-roaming 
        cervidae. 
           (c) The commissioner of agriculture in consultation with 
        the commissioner of natural resources shall adopt rules 
        prescribing fencing criteria for farmed cervidae. 
           [EFFECTIVE DATE.] This section is effective January 1, 2004.
           Sec. 8.  Minnesota Statutes 2002, section 17.452, 
        subdivision 11, is amended to read: 
           Subd. 11.  [DISEASE INSPECTION CONTROL PROGRAMS.] Farmed 
        cervidae herds are subject to chapter 35 and the rules of the 
        board of animal health in the same manner as livestock and 
        domestic animals, including provisions relating to importation 
        and transportation. 
           Sec. 9.  Minnesota Statutes 2002, section 17.452, 
        subdivision 12, is amended to read: 
           Subd. 12.  [IDENTIFICATION.] (a) Farmed cervidae must be 
        identified by United States Department of Agriculture metal ear 
        tags, electronic implants, or other means of identification 
        approved by the board of animal health in consultation with the 
        commissioner of natural resources.  Beginning January 1, 2004, 
        the identification must be visible to the naked eye during 
        daylight under normal conditions at a distance of 50 yards.  
        Newborn or imported animals are required to must be identified 
        by March 1 of each year before December 31 of the year in which 
        the animal is born or before movement from the premises, 
        whichever occurs first.  The board shall authorize discrete 
        permanent identification for farmed cervidae in public displays 
        or other forums where visible identification is objectionable. 
           (b) Identification of farmed cervidae is subject to 
        sections 35.821 to 35.831. 
           (c) The board of animal health shall register farmed 
        cervidae upon request of the owner.  The owner must submit the 
        registration request on forms provided by the board.  The forms 
        must include sales receipts or other documentation of the origin 
        of the cervidae.  The board shall provide copies of the 
        registration information to the commissioner of natural 
        resources upon request.  The owner must keep written records of 
        the acquisition and disposition of registered farmed cervidae. 
           Sec. 10.  Minnesota Statutes 2002, section 17.452, 
        subdivision 13, is amended to read: 
           Subd. 13.  [INSPECTION.] The commissioner of agriculture 
        and the board of animal health may inspect farmed cervidae, 
        farmed cervidae facilities, and farmed cervidae records.  For 
        each herd, the owner or owners must, on or before January 1, pay 
        an annual inspection fee equal to $10 for each cervid in the 
        herd as reflected in the most recent inventory submitted to the 
        board of animal health up to a maximum fee of $100.  The 
        commissioner of natural resources may inspect farmed cervidae, 
        farmed cervidae facilities, and farmed cervidae records with 
        reasonable suspicion that laws protecting native wild animals 
        have been violated. and must notify the owner must be notified 
        in writing at the time of the inspection of the reason for the 
        inspection and informed must inform the owner in writing after 
        the inspection of whether (1) the cause of the inspection was 
        unfounded; or (2) there will be an ongoing investigation or 
        continuing evaluation. 
           Sec. 11.  Minnesota Statutes 2002, section 17.452, is 
        amended by adding a subdivision to read: 
           Subd. 13a.  [CERVIDAE INSPECTION ACCOUNT.] A cervidae 
        inspection account is established in the state treasury.  The 
        fees collected under subdivision 13 and interest attributable to 
        money in the account must be deposited in the state treasury and 
        credited to the cervidae inspection account in the special 
        revenue fund.  Money in the account, including interest earned, 
        is appropriated to the board of animal health for the 
        administration and enforcement of this section. 
           Sec. 12.  Minnesota Statutes 2002, section 17.452, is 
        amended by adding a subdivision to read: 
           Subd. 15.  [MANDATORY REGISTRATION.] A person may not 
        possess live cervidae in Minnesota unless the person is 
        registered with the board of animal health and meets all the 
        requirements for farmed cervidae under this section.  Cervidae 
        possessed in violation of this subdivision may be seized and 
        destroyed by the commissioner of natural resources. 
           [EFFECTIVE DATE.] This section is effective January 1, 2004.
           Sec. 13.  Minnesota Statutes 2002, section 17.452, is 
        amended by adding a subdivision to read: 
           Subd. 16.  [MANDATORY SURVEILLANCE FOR CHRONIC WASTING 
        DISEASE.] (a) An inventory for each farmed cervidae herd must be 
        verified by an accredited veterinarian and filed with the board 
        of animal health every 12 months. 
           (b) Movement of farmed cervidae from any premises to 
        another location must be reported to the board of animal health 
        within 14 days of such movement on forms approved by the board 
        of animal health. 
           (c) All animals from farmed cervidae herds that are over 16 
        months of age that die or are slaughtered must be tested for 
        chronic wasting disease. 
           [EFFECTIVE DATE.] This section is effective January 1, 2004.
           Sec. 14.  Minnesota Statutes 2002, section 18.78, is 
        amended to read: 
           18.78 [CONTROL OR ERADICATION OF NOXIOUS WEEDS.] 
           Subdivision 1.  [GENERALLY.] Except as provided in section 
        18.85, A person owning land, a person occupying land, or a 
        person responsible for the maintenance of public land shall 
        control or eradicate all noxious weeds on the land at a time and 
        in a manner ordered by the commissioner, the county agricultural 
        inspector, or a local weed inspector. 
           Subd. 2.  [CONTROL OF PURPLE LOOSESTRIFE.] An owner of 
        nonfederal lands underlying public waters or wetlands designated 
        under section 103G.201 is not required to control or eradicate 
        purple loosestrife below the ordinary high water level of the 
        public water or wetland.  The commissioner of natural resources 
        is responsible for control and eradication of purple loosestrife 
        on public waters and wetlands designated under section 103G.201, 
        except those located upon lands owned in fee title or managed by 
        the United States.  The officers, employees, agents, and 
        contractors of the commissioner of natural resources may enter 
        upon public waters and wetlands designated under section 
        103G.201 and, after providing notification to the occupant or 
        owner of the land, may cross adjacent lands as necessary for the 
        purpose of investigating purple loosestrife infestations, 
        formulating methods of eradication, and implementing control and 
        eradication of purple loosestrife.  The commissioner, after 
        consultation with the commissioner of agriculture, of natural 
        resources shall, by June 1 of each year, compile a priority list 
        of purple loosestrife infestations to be controlled in 
        designated public waters.  The commissioner of agriculture 
        natural resources must distribute the list to county 
        agricultural inspectors, local weed inspectors, and their 
        appointed agents.  The commissioner of natural resources shall 
        control listed purple loosestrife infestations in priority order 
        within the limits of appropriations provided for that purpose.  
        This procedure shall be the exclusive means for control of 
        purple loosestrife on designated public waters by the 
        commissioner of natural resources and shall supersede the other 
        provisions for control of noxious weeds set forth elsewhere in 
        this chapter.  The responsibility of the commissioner of natural 
        resources to control and eradicate purple loosestrife on public 
        waters and wetlands located on private lands and the authority 
        to enter upon private lands ends ten days after receipt by the 
        commissioner of a written statement from the landowner that the 
        landowner assumes all responsibility for control and eradication 
        of purple loosestrife under sections 18.78 to 18.88.  State 
        officers, employees, agents, and contractors of the commissioner 
        of natural resources are not liable in a civil action for 
        trespass committed in the discharge of their duties under this 
        section and are not liable to anyone for damages, except for 
        damages arising from gross negligence. 
           Sec. 15.  Minnesota Statutes 2002, section 18.79, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AUTHORIZED AGENTS.] The commissioner shall 
        authorize department of agriculture personnel and may authorize, 
        in writing, County agricultural inspectors to act as agents in 
        the administration and enforcement of may administer and enforce 
        sections 18.76 to 18.88.  
           Sec. 16.  Minnesota Statutes 2002, section 18.79, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ENTRY UPON LAND.] To administer and enforce 
        sections 18.76 to 18.88, the commissioner, authorized agents of 
        the commissioner, county agricultural inspectors, and local weed 
        inspectors may enter upon land without consent of the owner and 
        without being subject to an action for trespass or any damages.  
           Sec. 17.  Minnesota Statutes 2002, section 18.79, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ORDER FOR CONTROL OR ERADICATION OF NOXIOUS 
        WEEDS.] The commissioner, A county agricultural inspector, or a 
        local weed inspector may order the control or eradication of 
        noxious weeds on any land within the state.  
           Sec. 18.  Minnesota Statutes 2002, section 18.79, 
        subdivision 6, is amended to read: 
           Subd. 6.  [EDUCATIONAL PROGRAMS INITIAL TRAINING FOR 
        CONTROL OR ERADICATION OF NOXIOUS WEEDS.] The commissioner shall 
        conduct education programs initial training considered necessary 
        for weed inspectors in the enforcement of the Noxious Weed Law.  
        The director of the Minnesota extension service may conduct 
        educational programs for the general public that will aid 
        compliance with the noxious weed law. 
           Sec. 19.  Minnesota Statutes 2002, section 18.79, 
        subdivision 9, is amended to read: 
           Subd. 9.  [INJUNCTION.] If the commissioner county 
        agricultural inspector applies to a court for a temporary or 
        permanent injunction restraining a person from violating or 
        continuing to violate sections 18.76 to 18.88, the injunction 
        may be issued without requiring a bond.  
           Sec. 20.  Minnesota Statutes 2002, section 18.79, 
        subdivision 10, is amended to read: 
           Subd. 10.  [PROSECUTION.] On finding that a person has 
        violated sections 18.76 to 18.88, the commissioner county 
        agricultural inspector may start court proceedings in the 
        locality in which the violation occurred.  The county attorney 
        may prosecute actions under sections 18.76 to 18.88 within the 
        county attorney's jurisdiction.  
           Sec. 21.  Minnesota Statutes 2002, section 18.81, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LOCAL WEED INSPECTORS.] Local weed inspectors 
        shall:  
           (1) examine all lands, including highways, roads, alleys, 
        and public ground in the territory over which their jurisdiction 
        extends to ascertain if section 18.78 and related rules have 
        been complied with; 
           (2) see that the control or eradication of noxious weeds is 
        carried out in accordance with section 18.83 and related 
        rules; and 
           (3) issue permits in accordance with section 18.82 and 
        related rules for the transportation of materials or equipment 
        infested with noxious weed propagating parts; and 
           (4) submit reports and attend meetings that the 
        commissioner requires. 
           Sec. 22.  Minnesota Statutes 2002, section 18.81, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NONPERFORMANCE BY INSPECTORS; REIMBURSEMENT FOR 
        EXPENSES.] (a) If local weed inspectors neglect or fail to do 
        their duty as prescribed in this section, the commissioner 
        county agricultural inspector shall issue a notice to the 
        inspector providing instructions on how and when to do their 
        duty.  If, after the time allowed in the notice, the local weed 
        inspector has not complied as directed, the county agricultural 
        inspector may perform the duty for the local weed inspector.  A 
        claim for the expense of doing the local weed inspector's duty 
        is a legal charge against the municipality in which the 
        inspector has jurisdiction.  The county agricultural inspector 
        doing the work may file an itemized statement of costs with the 
        clerk of the municipality in which the work was performed.  The 
        municipality shall immediately issue proper warrants to the 
        county for the work performed.  If the municipality fails to 
        issue the warrants, the county auditor may include the amount 
        contained in the itemized statement of costs as part of the next 
        annual tax levy in the municipality and withhold that amount 
        from the municipality in making its next apportionment. 
           (b) If a county agricultural inspector fails to perform the 
        duties as prescribed in this section, the commissioner shall 
        issue a notice to the inspector providing instructions on how 
        and when to do that duty.  
           (c) The commissioner shall by rule establish procedures to 
        carry out the enforcement actions for nonperformance required by 
        this subdivision. 
           Sec. 23.  Minnesota Statutes 2002, section 18.84, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COURT APPEAL OF COSTS; PETITION.] (a) A 
        landowner who has appealed the cost of noxious weed control 
        measures under subdivision 2 may petition for judicial review.  
        The petition must be filed within 30 days after the conclusion 
        of the hearing before the county board.  The petition must be 
        filed with the court administrator in the county in which the 
        land where the noxious weed control measures were undertaken is 
        located, together with proof of service of a copy of the 
        petition on the commissioner and the county auditor.  No 
        responsive pleadings may be required of the commissioner or the 
        county, and no court fees may be charged for the appearance of 
        the commissioner or the county in this matter. 
           (b) The petition must be captioned in the name of the 
        person making the petition as petitioner and the commissioner of 
        agriculture and respective county as respondents.  The petition 
        must include the petitioner's name, the legal description of the 
        land involved, a copy of the notice to control noxious weeds, 
        and the date or dates on which appealed control measures were 
        undertaken. 
           (c) The petition must state with specificity the grounds 
        upon which the petitioner seeks to avoid the imposition of a 
        lien for the cost of noxious weed control measures. 
           Sec. 24.  Minnesota Statutes 2002, section 18.86, is 
        amended to read: 
           18.86 [UNLAWFUL ACTS.] 
           No person may:  
           (1) hinder or obstruct in any way the commissioner, the 
        commissioner's authorized agents, county agricultural 
        inspectors, or local weed inspectors in the performance of their 
        duties as provided in sections 18.76 to 18.88 or related rules; 
           (2) neglect, fail, or refuse to comply with section 18.82 
        or related rules in the transportation and use of material or 
        equipment infested with noxious weed propagating parts; 
           (3) sell material containing noxious weed propagating parts 
        to a person who does not have a permit to transport that 
        material or to a person who does not have a screenings permit 
        issued in accordance with section 21.74; or 
           (4) neglect, fail, or refuse to comply with a general 
        notice or an individual notice to control or eradicate noxious 
        weeds.  
           Sec. 25.  Minnesota Statutes 2002, section 18B.10, is 
        amended to read: 
           18B.10 [ACTION TO PREVENT GROUND WATER CONTAMINATION.] 
           (a) The commissioner may, by rule, special order, or 
        delegation through written regulatory agreement with officials 
        of other approved agencies, take action necessary to prevent the 
        contamination of ground water resulting from leaching of 
        pesticides through the soil, from the backsiphoning or 
        backflowing of pesticides through water wells, or from the 
        direct flowage of pesticides to ground water. 
           (b) With owner consent, the commissioner may use private 
        water wells throughout the state to monitor for the presence of 
        agricultural pesticides and other industrial chemicals in ground 
        water.  The specific locations and land owners shall not be 
        identifiable.  The owner or user of a private water well sampled 
        by the commissioner must be given access to test results. 
           Sec. 26.  Minnesota Statutes 2002, section 18B.26, 
        subdivision 3, is amended to read: 
           Subd. 3.  [APPLICATION FEE.] (a) A registrant shall pay an 
        annual application fee for each pesticide to be registered, and 
        this fee is set at one-tenth of one percent for calendar year 
        1990, at one-fifth of one percent for calendar year 1991, and at 
        two-fifths of one percent for calendar year 1992 and thereafter 
        of annual gross sales within the state and annual gross sales of 
        pesticides used in the state, with a minimum nonrefundable fee 
        of $250.  The registrant shall determine when and which 
        pesticides are sold or used in this state.  The registrant shall 
        secure sufficient sales information of pesticides distributed 
        into this state from distributors and dealers, regardless of 
        distributor location, to make a determination.  Sales of 
        pesticides in this state and sales of pesticides for use in this 
        state by out-of-state distributors are not exempt and must be 
        included in the registrant's annual report, as required under 
        paragraph (c), and fees shall be paid by the registrant based 
        upon those reported sales.  Sales of pesticides in the state for 
        use outside of the state are exempt from the application fee in 
        this paragraph if the registrant properly documents the sale 
        location and distributors.  A registrant paying more than the 
        minimum fee shall pay the balance due by March 1 based on the 
        gross sales of the pesticide by the registrant for the preceding 
        calendar year.  The fee for disinfectants and sanitizers shall 
        be the minimum.  The minimum fee is due by December 31 preceding 
        the year for which the application for registration is made.  Of 
        the amount collected after calendar year 1990, at least $600,000 
        per fiscal year must be credited to the waste pesticide account 
        under section 18B.065, subdivision 5 The commissioner shall 
        spend at least $300,000 per fiscal year from the pesticide 
        regulatory account for the purposes of the waste pesticide 
        collection program. 
           (b) An additional fee of $100 must be paid by the applicant 
        for each pesticide to be registered if the application is a 
        renewal application that is submitted after December 31. 
           (c) A registrant must annually report to the commissioner 
        the amount and type of each registered pesticide sold, offered 
        for sale, or otherwise distributed in the state.  The report 
        shall be filed by March 1 for the previous year's registration.  
        The commissioner shall specify the form of the report and 
        require additional information deemed necessary to determine the 
        amount and type of pesticides annually distributed in the 
        state.  The information required shall include the brand name, 
        amount, and formulation of each pesticide sold, offered for 
        sale, or otherwise distributed in the state, but the information 
        collected, if made public, shall be reported in a manner which 
        does not identify a specific brand name in the report. 
           Sec. 27.  Minnesota Statutes 2002, section 18B.37, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [ACCESS TO PESTICIDE APPLICATION 
        INFORMATION.] (a) A physician licensed to practice in Minnesota, 
        or a Minnesota licensed veterinarian, may submit a request to 
        the commissioner for access to available information on the 
        application of pesticides by a commercial or noncommercial 
        pesticide applicator related to a course of diagnosis, care, or 
        treatment of a patient under the care of the physician or 
        veterinarian. 
           (b) A request for pesticide application information under 
        this subdivision must include available details as to the 
        specific location of a known or suspected application that 
        occurred on one or more specified dates and times.  The request 
        must also include information on symptoms displayed by the 
        patient that prompted the physician or veterinarian to suspect 
        pesticide exposure.  The request must indicate that any 
        information discovered will become part of the confidential 
        patient record and will not be released publicly. 
           (c) Upon receipt of a request under paragraph (a), the 
        commissioner, in consultation with the commissioner of health, 
        shall promptly review the information contained in the request 
        and determine if release of information held by the department 
        may be beneficial for the medical diagnosis, care, and treatment 
        of the patient. 
           (d) The commissioner may release to the requester available 
        information on the pesticide.  The commissioner shall withhold 
        nonessential information such as total acres treated, the 
        specific amount of pesticides applied, and the identity of the 
        applicator or property owner. 
           Sec. 28.  Minnesota Statutes 2002, section 28A.08, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FEES EFFECTIVE JULY 1, 1999 2003.] 
                                                          Penalties 
        Type of food handler                    License    Late     No
                                                Fee      Renewal  License
                                                Effective 
                                                July 1,
                                                1999
                                                2003
        1.   Retail food handler
             (a) Having gross sales of only
             prepackaged nonperishable food
             of less than $15,000 for 
             the immediately previous 
             license or fiscal year and 
             filing a statement with the 
             commissioner                       $ 48     $ 16     $ 27
                                                $ 50     $ 17     $ 33
             (b) Having under $15,000 gross
             sales including food preparation 
             or having $15,000 to $50,000 
             gross sales for the immediately 
             previous license or fiscal year    $ 65     $ 16     $ 27
                                                $ 77     $ 25     $ 51
             (c) Having $50,000 $50,001 to $250,000 
             gross sales for the immediately 
             previous license or fiscal year    $126     $ 37     $ 80 
                                                $155     $ 51     $102 
             (d) Having $250,000 $250,001 to 
             $1,000,000 gross sales for the 
             immediately previous license or 
             fiscal year                        $216     $ 54     $107
                                                $276     $ 91     $182
             (e) Having $1,000,000 $1,000,001 to 
             $5,000,000 gross sales for the 
             immediately previous license or 
             fiscal year                        $601     $107     $187
                                                $799     $264     $527
             (f) Having $5,000,000 $5,000,001 to
             $10,000,000 gross sales for the
             immediately previous license or
             fiscal year                        $842     $161     $321
                                              $1,162     $383     $767
             (g) Having over $10,000,000 $10,000,001 to
             $15,000,000 gross sales for the
             immediately previous license or
             fiscal year                        $962     $214     $375
                                              $1,376     $454     $908
             (h) Having $15,000,001 to
             $20,000,000 gross sales for the
             immediately previous license or
             fiscal year                      $1,607     $530   $1,061
             (i) Having $20,000,001 to
             $25,000,000 gross sales for the
             immediately previous license or
             fiscal year                      $1,847     $610   $1,219
             (j) Having over $25,000,001
             gross sales for the immediately
             previous license or fiscal year  $2,001     $660   $1,321
        2.   Wholesale food handler
             (a) Having gross sales or
             service of less than $25,000
             for the immediately previous 
             license or fiscal year             $ 54     $ 16     $ 16
                                                $ 57     $ 19     $ 38
             (b) Having $25,000 $25,001 to
             $250,000 gross sales or
             service for the immediately 
             previous license or fiscal year    $241     $ 54     $107
                                                $284     $ 94     $187
             (c) Having $250,000 $250,001 to 
             $1,000,000 gross sales or
             service from a mobile unit
             without a separate food facility
             for the immediately previous
             license or fiscal year             $361     $ 80     $161
                                                $444     $147     $293
             (d) Having $250,000 $250,001 to 
             $1,000,000 gross sales or
             service not covered under 
             paragraph (c) for the immediately 
             previous license or fiscal year    $480     $107     $214
                                                $590     $195     $389
             (e) Having $1,000,000 $1,000,001 to
             $5,000,000 gross sales or 
             service for the immediately 
             previous license or fiscal year    $601     $134     $268
                                                $769     $254     $508
             (f) Having over $5,000,000 $5,000,001 
             to $10,000,000 gross
             sales for the immediately 
             previous license or fiscal year    $692     $161     $321
                                                $920     $304     $607
             (g) Having $10,000,001 to
             $15,000,000 gross sales or
             service for the immediately
             previous license or fiscal year    $990     $327     $653
             (h) Having $15,000,001 to
             $20,000,000 gross sales or
             service for the immediately
             previous license or fiscal year  $1,156     $381     $763
             (i) Having $20,000,001 to
             $25,000,000 gross sales or
             service for the immediately
             previous license or fiscal year  $1,329     $439     $877
             (j) Having over $25,000,001 or 
             more gross sales or service for
             the immediately previous license
             or fiscal year                   $1,502     $496     $991
        3.   Food broker                        $120     $ 32     $ 54
                                                $150     $ 50     $ 99
        4.   Wholesale food processor
             or manufacturer 
             (a) Having gross sales of less 
             than $125,000 for the 
             immediately previous license 
             or fiscal year                     $161     $ 54     $107
                                                $169     $ 56     $112
             (b) Having $125,000 $125,001 to $250,000
             gross sales for the immediately 
             previous license or fiscal year    $332     $ 80     $161
                                                $392     $129     $259
             (c) Having $250,001 to $1,000,000
             gross sales for the immediately 
             previous license or fiscal year    $480     $107     $214
                                                $590     $195     $389
             (d) Having $1,000,001 to
             5,000,000 gross sales for the
             immediately previous license or
             fiscal year                        $601     $134     $268
                                                $769     $254     $508
             (e) Having $5,000,001 to 
             $10,000,000 gross sales for 
             the immediately previous 
             license or fiscal year             $692     $161     $321 
                                                $920     $304     $607
             (f) Having over $10,000,000 $10,000,001 to
             $15,000,000 gross sales for the
             immediately previous license or
             fiscal year                        $963     $214     $375
                                              $1,377     $454     $909
             (g) Having $15,000,001 to
             $20,000,000 gross sales or
             service for the immediately
             previous license or fiscal year  $1,608     $531   $1,061
             (h) Having $20,000,001 to
             $25,000,000 gross sales or
             service for the immediately
             previous license or fiscal year  $1,849     $610   $1,220
             (i) Having $25,000,001 to
             $50,000,000 gross sales or
             service for the immediately
             previous license or fiscal year  $2,090     $690   $1,379
             (j) Having $50,000,001 to
             $100,000,000 gross sales or
             service for the immediately
             previous license or fiscal year  $2,330     $769   $1,538
             (k) Having $100,000,000 or
             more gross sales or service
             for the immediately previous
             license or fiscal year           $2,571     $848   $1,697
        5.   Wholesale food processor of
             meat or poultry products
             under supervision of the
             U. S. Department of Agriculture 
             (a) Having gross sales of less 
             than $125,000 for the 
             immediately previous license 
             or fiscal year                     $107     $ 27     $ 54
                                                $112     $ 37     $ 74
             (b) Having $125,000 $125,001 to 
             $250,000 gross sales for the
             immediately previous license
             or fiscal year                     $181     $ 54     $ 80
                                                $214     $ 71     $141
             (c) Having $250,001 to
             $1,000,000 gross sales for the
             immediately previous license
             or fiscal year                     $271     $ 80     $134
                                                $333     $110     $220
             (d) Having $1,000,001 to
             $5,000,000 gross sales 
             for the immediately previous 
             license or fiscal year             $332     $ 80     $161
                                                $425     $140     $281
             (e) Having $5,000,001 to 
             $10,000,000 gross sales for 
             the immediately previous 
             license or fiscal year             $392     $107     $187 
                                                $521     $172     $344
             (f) Having over $10,000,000 $10,000,001 
             gross sales for the immediately 
             previous license or fiscal year    $535     $161     $268 
                                                $765     $252     $505
             (g) Having $15,000,001 to
             $20,000,000 gross sales for the
             immediately previous license or
             fiscal year                        $893     $295     $589
             (h) Having $20,000,001 to
             $25,000,000 gross sales for the
             immediately previous license or
             fiscal year                      $1,027     $339     $678
             (i) Having $25,000,001 to
             $50,000,000 gross sales for the
             immediately previous license or
             fiscal year                      $1,161     $383     $766
             (j) Having $50,000,001 to
             $100,000,000 gross sales for
             the immediately previous license
             or fiscal year                   $1,295     $427     $855
             (k) Having $100,000,001 or
             more gross sales for the
             immediately previous license or
             fiscal year                       $1,428     $471     $942
        6.   Wholesale food processor or
             manufacturer operating only at
             the state fair                     $125     $ 40     $ 50 
        7.   Wholesale food manufacturer
             having the permission of the
             commissioner to use the name
             Minnesota Farmstead cheese         $ 30     $ 10     $ 15
         8.  Nonresident frozen dairy 
             manufacturer                       $200     $ 50     $ 75
         9.  Wholesale food manufacturer
             processing less than 700,000
             pounds per year of raw milk        $ 30     $ 10     $ 15
         10. A milk marketing organization
             without facilities for 
             processing or manufacturing 
             that purchases milk from milk
             producers for delivery to a
             licensed wholesale food 
             processor or manufacturer          $ 50     $ 15     $ 25 
           Sec. 29.  Minnesota Statutes 2002, section 28A.085, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [VIOLATIONS; PROHIBITED ACTS.] The 
        commissioner may charge a reinspection fee for each reinspection 
        of a food handler that: 
           (1) is found with a major violation of requirements in 
        chapter 28, 29, 30, 31, 31A, 32, 33, or 34, or rules adopted 
        under one of those chapters; 
           (2) is found with a violation of section 31.02, 31.161, or 
        31.165, and requires a follow-up inspection after an 
        administrative meeting held pursuant to section 31.14; or 
           (3) fails to correct equipment and facility deficiencies as 
        required in rules adopted under chapter 28, 29, 30, 31, 31A, 32, 
        or 34.  The first reinspection of a firm with gross food sales 
        under $1,000,000 must be assessed at $25 $75.  The fee for a 
        firm with gross food sales over $1,000,000 is $50 $100.  The fee 
        for a subsequent reinspection of a firm for the same violation 
        is 50 percent of their current license fee or $200, whichever is 
        greater.  The establishment must be issued written notice of 
        violations with a reasonable date for compliance listed on the 
        notice.  An initial inspection relating to a complaint is not a 
        reinspection. 
           Sec. 30.  Minnesota Statutes 2002, section 28A.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ANNUAL FEE; EXCEPTIONS.] Every 
        coin-operated food vending machine is subject to an annual state 
        inspection fee of $15 $25 for each nonexempt machine except nut 
        vending machines which are subject to an annual state inspection 
        fee of $5 $10 for each machine, provided that: 
           (a) Food vending machines may be inspected by either a home 
        rule charter or statutory city, or a county, but not both, and 
        if inspected by a home rule charter or statutory city, or a 
        county they shall not be subject to the state inspection fee, 
        but the home rule charter or statutory city, or the county may 
        impose an inspection or license fee of no more than the state 
        inspection fee.  A home rule charter or statutory city or county 
        that does not inspect food vending machines shall not impose a 
        food vending machine inspection or license fee. 
           (b) Vending machines dispensing only gum balls, hard candy, 
        unsorted candy, or ice manufactured and packaged by another 
        shall be exempt from the state inspection fee, but may be 
        inspected by the state.  A home rule charter or statutory city 
        may impose by ordinance an inspection or license fee of no more 
        than the state inspection fee for nonexempt machines on the 
        vending machines described in this paragraph.  A county may 
        impose by ordinance an inspection or license fee of no more than 
        the state inspection fee for nonexempt machines on the vending 
        machines described in this paragraph which are not located in a 
        home rule charter or statutory city.  
           (c) Vending machines dispensing only bottled or canned soft 
        drinks are exempt from the state, home rule charter or statutory 
        city, and county inspection fees, but may be inspected by the 
        commissioner or the commissioner's designee. 
           Sec. 31.  Minnesota Statutes 2002, section 32.394, 
        subdivision 8, is amended to read: 
           Subd. 8.  [GRADE A INSPECTION FEES.] A processor or 
        marketing organization of milk, milk products, sheep milk, or 
        goat milk who wishes to market Grade A milk or use the Grade A 
        label must apply for Grade A inspection service from the 
        commissioner.  A pasteurization plant requesting Grade A 
        inspection service must hold a Grade A permit and pay an annual 
        inspection fee of no more than $500.  For Grade A farm 
        inspection service, the fee must be no more than $50 per farm, 
        paid annually by the processor or by the marketing organization 
        on behalf of its patrons.  For a farm requiring a reinspection 
        in addition to the required biannual inspections, an additional 
        fee of no more than $25 $45 per reinspection must be paid by the 
        processor or by the marketing organization on behalf of its 
        patrons.  The Grade A farm inspection fee must not exceed the 
        lesser of (1) 40 percent of the department's actual average cost 
        per farm inspection or reinspection; or (2) the dollar limits 
        set in this subdivision.  No fee increase may be implemented 
        until after the commissioner has held three or more public 
        hearings.  
           Sec. 32.  Minnesota Statutes 2002, section 32.394, 
        subdivision 8b, is amended to read: 
           Subd. 8b.  [MANUFACTURING GRADE FARM CERTIFICATION.] A 
        processor or marketing organization of milk, milk products, 
        sheep milk, or goat milk who wishes to market other than Grade A 
        milk must apply for a manufacturing grade farm certification 
        inspection from the commissioner.  A manufacturing plant that 
        pasteurizes milk or milk by-products must pay an annual fee 
        based on the number of pasteurization units.  This fee must not 
        exceed $140 per unit.  The fee for farm certification inspection 
        must not be more than $25 per farm to be paid annually by the 
        processor or by the marketing organization on behalf of its 
        patrons.  For a farm requiring more than the one inspection for 
        certification, a reinspection fee of no more than $25 $45 must 
        be paid by the processor or by the marketing organization on 
        behalf of its patrons.  The fee must be set by the commissioner 
        in an amount necessary to cover 40 percent of the department's 
        actual cost of providing the annual inspection but must not 
        exceed the limits in this subdivision.  No fee increase may be 
        implemented until after the commissioner has held three or more 
        public hearings.  
           Sec. 33.  Minnesota Statutes 2002, section 32.394, 
        subdivision 8d, is amended to read: 
           Subd. 8d.  [PROCESSOR ASSESSMENT.] (a) A manufacturer shall 
        pay to the commissioner a fee for fluid milk processed and milk 
        used in the manufacture of fluid milk products sold for retail 
        sale in Minnesota.  Beginning May 1, 1993, the fee is six cents 
        per hundredweight.  If the commissioner determines that a 
        different fee, in an amount not less than five cents and not 
        more than nine cents per hundredweight, when combined with 
        general fund appropriations and fees charged under sections 
        31.39 and 32.394, subdivision 8, is needed to provide adequate 
        funding for the Grades A and B inspection programs and the 
        administration and enforcement of Laws 1993, chapter 65, the 
        commissioner may, by rule, change the fee on processors within 
        the range provided within this subdivision as set by the 
        commissioner's order except that beginning July 1, 2003, the fee 
        is set at seven cents per hundredweight and thereafter no change 
        within any 12-month period may be in excess of one cent per 
        hundredweight. 
           (b) Processors must report quantities of milk processed 
        under paragraph (a) on forms provided by the commissioner.  
        Processor fees must be paid monthly.  The commissioner may 
        require the production of records as necessary to determine 
        compliance with this subdivision. 
           (c) The commissioner may create within the department a 
        dairy consulting program to provide assistance to dairy 
        producers who are experiencing problems meeting the sanitation 
        and quality requirements of the dairy laws and rules. 
           The commissioner may use money appropriated from the dairy 
        services account created in subdivision 9 to pay for the program 
        authorized in this paragraph. 
           Sec. 34.  Minnesota Statutes 2002, section 35.155, is 
        amended to read: 
           35.155 [CERVIDAE IMPORT RESTRICTIONS.] 
           (a) A person must not import cervidae into the state from a 
        herd that is infected or exposed to chronic wasting disease or 
        from a known chronic wasting disease endemic area, as determined 
        by the board.  A person may import cervidae into the state only 
        from a herd that is not in a known chronic wasting disease 
        endemic area, as determined by the board, and the herd has been 
        subject to a state or provincial approved chronic wasting 
        disease monitoring program for at least three years.  Cervidae 
        imported in violation of this section may be seized and 
        destroyed by the commissioner of natural resources. 
           (b) This section expires on June 1, 2003. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 35.  Minnesota Statutes 2002, section 38.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PRO RATA DISTRIBUTION; CONDITIONS.] 
        (1) (a) Money appropriated to aid county and district 
        agricultural societies and associations shall be distributed 
        among all county and district agricultural societies or 
        associations in the state pro rata, upon condition that each of 
        them has complied with the conditions specified in clause 
        (2) paragraph (b). 
           (2) (b) To be eligible to participate in such the 
        distribution of aid, each such agricultural society or 
        association (a) shall have: 
           (1) held an annual fair for each of the three years last 
        past, unless prevented from doing so because of a calamity or an 
        epidemic declared by the board of health as defined in section 
        145A.02, subdivision 2, or the state commissioner of health to 
        exist; (b) shall have 
           (2) an annual membership of 25 or more; (c) shall have 
           (3) paid out to exhibitors for premiums awarded at the last 
        fair held a sum not less than the amount to be received from the 
        state; (d) shall have 
           (4) published and distributed not less than three weeks 
        before the opening day of the fair a premium list, listing all 
        items or articles on which premiums are offered and the amounts 
        of such premiums and shall have paid premiums pursuant to the 
        amount shown for each article or item to be exhibited; provided 
        that premiums for school exhibits may be advertised in the 
        published premium list by reference to a school premium list 
        prepared and circulated during the preceding school year; and 
        shall have collected all fees charged for entering an exhibit at 
        the time the entry was made and in accordance with schedule of 
        entry fees to be charged as published in the premium list; (e) 
        shall have 
           (5) paid not more than one premium on each article or item 
        exhibited, excluding championship or sweepstake awards, and 
        excluding the payment of open class premium awards to 4H Club 
        exhibits which at this same fair had won a first prize award in 
        regular 4H Club competition; (f) shall have and 
           (6) submitted its records and annual report to the 
        commissioner of agriculture on a form provided by the 
        commissioner of agriculture, on or before the first day of 
        November of the current year in which the fair was held. 
           (3) (c) All payments authorized under the provisions of 
        this chapter shall be made only upon the presentation by the 
        commissioner of agriculture with the commissioner of finance of 
        a statement of premium allocations.  As used herein the term 
        premium shall mean the cash award paid to an exhibitor for the 
        merit of an exhibit of livestock, livestock products, grains, 
        fruits, flowers, vegetables, articles of domestic science, 
        handicrafts, hobbies, fine arts, and articles made by school 
        pupils, or the cash award paid to the merit winner of events 
        such as 4H Club or Future Farmer Contest, Youth Group Contests, 
        school spelling contests and school current events contests, the 
        award corresponding to the amount offered in the advertised 
        premium list referred to in schedule 2.  Payments of awards for 
        horse races, ball games, musical contests, talent contests, 
        parades, and for amusement features for which admission is 
        charged, are specifically excluded from consideration as 
        premiums within the meaning of that term as used herein.  Upon 
        receipt of the statement by the commissioner of agriculture, it 
        shall be the duty of the commissioner of finance to shall draw a 
        voucher in favor of the agricultural society or association for 
        the amount to which it is entitled under the provisions of this 
        chapter, which.  The amount shall be computed as follows:  On 
        the first $750 premiums paid by each society or association at 
        the last fair held, such the society or association shall 
        receive 100 percent reimbursement; on the second $750 premiums 
        paid, 80 percent; on the third $750 premiums paid, 60 percent; 
        and on any sum in excess of $2,250, 40 percent.  The 
        commissioner of finance shall make payments not later than July 
        15 of the year following the calendar year in which the annual 
        fair was held. 
           (4) (d) If the total amount of state aid to which the 
        agricultural societies and associations are entitled under the 
        provisions of this chapter exceeds the amount of the 
        appropriation therefor, the amounts to which the societies or 
        associations are entitled shall be prorated so that the total 
        payments by the state will not exceed the appropriation. 
           Sec. 36.  Minnesota Statutes 2002, section 38.02, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CERTIFICATION, COMMISSIONER OF AGRICULTURE.] Any 
        county or district agricultural society which has held its 
        second annual fair is entitled to share pro rata in the 
        distribution.  The commissioner of agriculture shall certify to 
        the secretary of the state agricultural society, within 30 days 
        after payments have been made, a list of all county or district 
        agricultural societies that have complied with this chapter, and 
        which are entitled to share in the appropriation.  All payments 
        shall be made within three months after the agricultural 
        societies submitted their based on reports submitted by 
        agricultural societies under subdivision 1, paragraph (b), 
        clause (2)(f) (6).  
           Sec. 37.  Minnesota Statutes 2002, section 41A.09, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [DEFINITIONS.] For the purposes of this section, 
        the terms defined in this subdivision have the meanings given 
        them. 
           (a) "Ethanol" means fermentation ethyl alcohol derived from 
        agricultural products, including potatoes, cereal, grains, 
        cheese whey, and sugar beets; forest products; or other 
        renewable resources, including residue and waste generated from 
        the production, processing, and marketing of agricultural 
        products, forest products, and other renewable resources, that: 
           (1) meets all of the specifications in ASTM specification D 
        4806-88; and 
           (2) is denatured as specified in Code of Federal 
        Regulations, title 27, parts 20 and 21. 
           (b) "Wet alcohol" means agriculturally derived fermentation 
        ethyl alcohol having a purity of at least 50 percent but less 
        than 99 percent. 
           (c) "Anhydrous alcohol" means fermentation ethyl alcohol 
        derived from agricultural products as described in paragraph 
        (a), but that does not meet ASTM specifications or is not 
        denatured and is shipped in bond for further processing. 
           (d) "Ethanol plant" means a plant at which ethanol, 
        anhydrous alcohol, or wet alcohol is produced. 
           (c) "Commissioner" means the commissioner of agriculture. 
           Sec. 38.  Minnesota Statutes 2002, section 41A.09, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [ETHANOL PRODUCER PAYMENTS.] (a) The 
        commissioner of agriculture shall make cash payments to 
        producers of ethanol, anhydrous alcohol, and wet alcohol located 
        in the state.  These payments shall apply only to ethanol, 
        anhydrous alcohol, and wet alcohol fermented in the state and 
        produced at plants that have begun production by June 30, 2000.  
        For the purpose of this subdivision, an entity that holds a 
        controlling interest in more than one ethanol plant is 
        considered a single producer.  The amount of the payment for 
        each producer's annual production, is: 
           (1) except as provided in paragraph (b) (c), is 20 cents 
        per gallon for each gallon of ethanol or anhydrous alcohol 
        produced on or before June 30, 2000, or ten years after the 
        start of production, whichever is later, 19 cents per gallon; 
        and 
           (2) for each gallon produced of wet alcohol on or before 
        June 30, 2000, or ten years after the start of production, 
        whichever is later, a payment in cents per gallon calculated by 
        the formula "alcohol purity in percent divided by five," and 
        rounded to the nearest cent per gallon, but not less than 11 
        cents per gallon. 
           The producer payments for anhydrous alcohol and wet alcohol 
        under this section may be paid to either the original producer 
        of anhydrous alcohol or wet alcohol or the secondary processor, 
        at the option of the original producer, but not to both.  The 
        first claim for production after June 30, 2003, must be 
        accompanied by a disclosure statement on a form provided by the 
        commissioner.  The disclosure statement must include a detailed 
        description of the organization of the business structure of the 
        claimant listing the percentages of ownership by any person or 
        other entity with an ownership interest of five percent or 
        greater, the distribution of income received by the claimant, 
        including operating income and payments under this subdivision. 
        The disclosure statement must include information sufficient to 
        demonstrate that a majority of the ultimate beneficial interest 
        in the entity receiving payments under this section is owned by 
        farmers or spouses of farmers, as defined in section 500.24, 
        residing in Minnesota.  Subsequent quarterly claims must report 
        changes in ownership.  Payments must not be made to a claimant 
        that has less than a majority of Minnesota farmer control except 
        that the commissioner may grant an exemption from the farmer 
        majority ownership requirement to a claimant that, on the day 
        following final enactment of this section, has demonstrated 
        greater than 40 percent farmer ownership which, when combined 
        with ownership interests of persons residing within 30 miles of 
        the plant, exceeds 50 percent.  In addition, a claimant located 
        in a city of the first class which qualifies for payments in all 
        other respects is not subject to this condition.  Information 
        provided under this paragraph is nonpublic data under section 
        13.02, subdivision 9. 
           (b) No payments shall be made for ethanol production that 
        occurs after June 30, 2010.  
           (b) (c) If the level of production at an ethanol plant 
        increases due to an increase in the production capacity of the 
        plant, the payment under paragraph (a), clause (1), applies to 
        the additional increment of production until ten years after the 
        increased production began.  Once a plant's production capacity 
        reaches 15,000,000 gallons per year, no additional increment 
        will qualify for the payment. 
           (c)  The commissioner shall make payments to producers of 
        ethanol or wet alcohol in the amount of 1.5 cents for each 
        kilowatt hour of electricity generated using closed-loop biomass 
        in a cogeneration facility at an ethanol plant located in the 
        state.  Payments under this paragraph shall be made only for 
        electricity generated at cogeneration facilities that begin 
        operation by June 30, 2000.  The payments apply to electricity 
        generated on or before the date ten years after the producer 
        first qualifies for payment under this paragraph.  Total 
        payments under this paragraph in any fiscal year may not exceed 
        $750,000.  For the purposes of this paragraph: 
           (1) "closed-loop biomass" means any organic material from a 
        plant that is planted for the purpose of being used to generate 
        electricity or for multiple purposes that include being used to 
        generate electricity; and 
           (2) "cogeneration" means the combined generation of: 
           (i) electrical or mechanical power; and 
           (ii) steam or forms of useful energy, such as heat, that 
        are used for industrial, commercial, heating, or cooling 
        purposes. 
           (d)  Payments under paragraphs (a) and (b)  to all 
        producers may not exceed $35,150,000 in a fiscal year. (d) Total 
        payments under paragraphs (a) and (b) (c) to a producer in a 
        fiscal year may not exceed $2,850,000 $3,000,000. 
           (e)  By the last day of October, January, April, and July, 
        each producer shall file a claim for payment for ethanol, 
        anhydrous alcohol, and wet alcohol production during the 
        preceding three calendar months.  A producer with more than one 
        plant shall file a separate claim for each plant.  A producer 
        that files a claim under this subdivision shall include a 
        statement of the producer's total ethanol, anhydrous alcohol, 
        and wet alcohol production in Minnesota during the quarter 
        covered by the claim, including anhydrous alcohol and wet 
        alcohol produced or received from an outside source.  A producer 
        shall file a separate claim for any amount claimed under 
        paragraph (c).  For each claim and statement of total ethanol, 
        anhydrous alcohol, and wet alcohol production filed under this 
        subdivision, the volume of ethanol, anhydrous alcohol, and wet 
        alcohol production or amounts of electricity generated using 
        closed-loop biomass must be examined by an independent certified 
        public accountant in accordance with standards established by 
        the American Institute of Certified Public Accountants. 
           (f)  Payments shall be made November 15, February 15, May 
        15, and August 15.  A separate payment shall be made for each 
        claim filed.  Except as provided in paragraph (j) (g), the total 
        quarterly payment to a producer under this paragraph, excluding 
        amounts paid under paragraph (c), may not exceed $750,000.  
           (g) If the total amount for which all producers are 
        eligible in a quarter under paragraph (c) exceeds the amount 
        available for payments, the commissioner shall make payments in 
        the order in which the plants covered by the claims began 
        generating electricity using closed-loop biomass. 
           (h) After July 1, 1997, new production capacity is only 
        eligible for payment under this subdivision if the commissioner 
        receives: 
           (1) an application for approval of the new production 
        capacity; 
           (2) an appropriate letter of long-term financial commitment 
        for construction of the new production capacity; and 
           (3) copies of all necessary permits for construction of the 
        new production capacity. 
           The commissioner may approve new production capacity based 
        on the order in which the applications are received.  
           (i) The commissioner may not approve any new production 
        capacity after July 1, 1998, except that a producer with an 
        approved production capacity of at least 12,000,000 gallons per 
        year but less than 15,000,000 gallons per year prior to July 1, 
        1998, is approved for 15,000,000 gallons of production capacity. 
           (j) (g) Notwithstanding the quarterly payment limits of 
        paragraph (f), the commissioner shall make an additional payment 
        in the eighth fourth quarter of each fiscal biennium year to 
        ethanol producers for the lesser of:  (1) 19 20 cents per gallon 
        of production in the eighth fourth quarter of the biennium year 
        that is greater than 3,750,000 gallons; or (2) the total amount 
        of payments lost during the first seven three quarters of 
        the biennium fiscal year due to plant outages, repair, or major 
        maintenance.  Total payments to an ethanol producer in a 
        fiscal biennium year, including any payment under this 
        paragraph, must not exceed the total amount the producer is 
        eligible to receive based on the producer's approved production 
        capacity.  The provisions of this paragraph apply only to 
        production losses that occur in quarters beginning after 
        December 31, 1999. 
           (k) For the purposes of this subdivision "new production 
        capacity" means annual ethanol production capacity that was not 
        allowed under a permit issued by the pollution control agency 
        prior to July 1, 1997, or for which construction did not begin 
        prior to July 1, 1997. 
           (h) The commissioner shall reimburse ethanol producers for 
        any deficiency in payments during earlier quarters if the 
        deficiency occurred because appropriated money was insufficient 
        to make timely payments in the full amount provided in paragraph 
        (a).  Notwithstanding the quarterly or annual payment 
        limitations in this subdivision, the commissioner shall begin 
        making payments for earlier deficiencies in each fiscal year 
        that appropriations for ethanol payments exceed the amount 
        required to make eligible scheduled payments.  Payments for 
        earlier deficiencies must continue until the deficiencies for 
        each producer are paid in full. 
           Sec. 39.  Minnesota Statutes 2002, section 116.07, 
        subdivision 7a, is amended to read: 
           Subd. 7a.  [NOTICE OF APPLICATION FOR LIVESTOCK FEEDLOT 
        PERMIT.] (a) A person who applies to the pollution control 
        agency or a county board for a permit to construct or expand a 
        feedlot with a capacity of 500 animal units or more shall, 
        not later less than ten 20 business days after the application 
        is submitted before the date on which a permit is issued, 
        provide notice to each resident and each owner of real property 
        within 5,000 feet of the perimeter of the proposed feedlot.  The 
        notice may be delivered by first class mail, in person, or by 
        the publication in a newspaper of general circulation within the 
        affected area and must include information on the type of 
        livestock and the proposed capacity of the feedlot.  
        Notification under this subdivision is satisfied under an equal 
        or greater notification requirement of a county conditional use 
        permit.  
           (b) The agency or a county board must verify that notice 
        was provided as required under paragraph (a) prior to issuing a 
        permit. 
           Sec. 40.  Minnesota Statutes 2002, section 116D.04, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  Where there is potential for significant 
        environmental effects resulting from any major governmental 
        action, the action shall be preceded by a detailed environmental 
        impact statement prepared by the responsible governmental unit.  
        The environmental impact statement shall be an analytical rather 
        than an encyclopedic document which describes the proposed 
        action in detail, analyzes its significant environmental 
        impacts, discusses appropriate alternatives to the proposed 
        action and their impacts, and explores methods by which adverse 
        environmental impacts of an action could be mitigated.  The 
        environmental impact statement shall also analyze those 
        economic, employment and sociological effects that cannot be 
        avoided should the action be implemented.  To ensure its use in 
        the decision making process, the environmental impact statement 
        shall be prepared as early as practical in the formulation of an 
        action.  
           (a) The board shall by rule establish categories of actions 
        for which environmental impact statements and for which 
        environmental assessment worksheets shall be prepared as well as 
        categories of actions for which no environmental review is 
        required under this section.  
           (b) The responsible governmental unit shall promptly 
        publish notice of the completion of an environmental assessment 
        worksheet in a manner to be determined by the board and shall 
        provide copies of the environmental assessment worksheet to the 
        board and its member agencies.  Comments on the need for an 
        environmental impact statement may be submitted to the 
        responsible governmental unit during a 30 day period following 
        publication of the notice that an environmental assessment 
        worksheet has been completed.  The responsible governmental 
        unit's decision on the need for an environmental impact 
        statement shall be based on the environmental assessment 
        worksheet and the comments received during the comment period, 
        and shall be made within 15 days after the close of the comment 
        period.  The board's chair may extend the 15 day period by not 
        more than 15 additional days upon the request of the responsible 
        governmental unit.  
           (c) An environmental assessment worksheet shall also be 
        prepared for a proposed action whenever material evidence 
        accompanying a petition by not less than 25 individuals, 
        submitted before the proposed project has received final 
        approval by the appropriate governmental units, demonstrates 
        that, because of the nature or location of a proposed action, 
        there may be potential for significant environmental effects.  
        Petitions requesting the preparation of an environmental 
        assessment worksheet shall be submitted to the board.  The chair 
        of the board shall determine the appropriate responsible 
        governmental unit and forward the petition to it.  A decision on 
        the need for an environmental assessment worksheet shall be made 
        by the responsible governmental unit within 15 days after the 
        petition is received by the responsible governmental unit.  The 
        board's chair may extend the 15 day period by not more than 15 
        additional days upon request of the responsible governmental 
        unit.  
           (d) Except in an environmentally sensitive location where 
        Minnesota Rules, part 4410.4300, subpart 29, item B, applies, 
        the proposed action is exempt from environmental review under 
        this chapter and rules of the board, if: 
           (1) the proposed action is: 
           (i) an animal feedlot facility with a capacity of less than 
        1,000 animal units; or 
           (ii) an expansion of an existing animal feedlot facility 
        with a total cumulative capacity of less than 1,000 animal 
        units; 
           (2) the application for the animal feedlot facility 
        includes a written commitment by the proposer to design, 
        construct, and operate the facility in full compliance with 
        pollution control agency feedlot rules; and 
           (3) the county board holds a public meeting for citizen 
        input at least ten business days prior to the pollution control 
        agency or county issuing a feedlot permit for the animal feedlot 
        facility unless another public meeting for citizen input has 
        been held with regard to the feedlot facility to be permitted.  
        The exemption in this paragraph is in addition to other 
        exemptions provided under other law and rules of the board. 
           (e) The board may, prior to final approval of a proposed 
        project, require preparation of an environmental assessment 
        worksheet by a responsible governmental unit selected by the 
        board for any action where environmental review under this 
        section has not been specifically provided for by rule or 
        otherwise initiated.  
           (e) (f) An early and open process shall be utilized to 
        limit the scope of the environmental impact statement to a 
        discussion of those impacts, which, because of the nature or 
        location of the project, have the potential for significant 
        environmental effects.  The same process shall be utilized to 
        determine the form, content and level of detail of the statement 
        as well as the alternatives which are appropriate for 
        consideration in the statement.  In addition, the permits which 
        will be required for the proposed action shall be identified 
        during the scoping process.  Further, the process shall identify 
        those permits for which information will be developed 
        concurrently with the environmental impact statement.  The board 
        shall provide in its rules for the expeditious completion of the 
        scoping process.  The determinations reached in the process 
        shall be incorporated into the order requiring the preparation 
        of an environmental impact statement.  
           (f) (g) Whenever practical, information needed by a 
        governmental unit for making final decisions on permits or other 
        actions required for a proposed project shall be developed in 
        conjunction with the preparation of an environmental impact 
        statement.  
           (g) (h) An environmental impact statement shall be prepared 
        and its adequacy determined within 280 days after notice of its 
        preparation unless the time is extended by consent of the 
        parties or by the governor for good cause.  The responsible 
        governmental unit shall determine the adequacy of an 
        environmental impact statement, unless within 60 days after 
        notice is published that an environmental impact statement will 
        be prepared, the board chooses to determine the adequacy of an 
        environmental impact statement.  If an environmental impact 
        statement is found to be inadequate, the responsible 
        governmental unit shall have 60 days to prepare an adequate 
        environmental impact statement. 
           Sec. 41.  Minnesota Statutes 2002, section 116O.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] The agricultural 
        utilization research institute is established as a nonprofit 
        corporation under section 501(c)(3) of the Internal Revenue Code 
        of 1986, as amended.  The agricultural utilization research 
        institute shall promote the establishment of new products and 
        product uses and the expansion of existing markets for the 
        state's agricultural commodities and products, including direct 
        financial and technical assistance for Minnesota entrepreneurs.  
        The institute must be located near an existing agricultural 
        research facility in the agricultural region of the state must 
        establish or maintain facilities and work with private and 
        public entities to leverage the resources available to achieve 
        maximum results for Minnesota agriculture. 
           Sec. 42.  Minnesota Statutes 2002, section 116O.09, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [BOARD OF DIRECTORS.] The board of directors of 
        the agricultural utilization research institute is comprised of: 
           (1) the chairs of the senate and the house of 
        representatives standing committees with jurisdiction over 
        agriculture policy finance or the chair's designee; 
           (2) two representatives of statewide farm organizations 
        appointed by the commissioner; 
           (3) two representatives of agribusiness, one of whom is a 
        member of the Minnesota Technology, Inc. board representing 
        agribusiness; and 
           (4) three representatives of the commodity promotion 
        councils. 
           A member of the board of directors under clauses (1) (2) to 
        (4), including a member serving on July 1, 2003, may designate a 
        permanent or temporary replacement member representing the same 
        constituency serve for a maximum of two three-year terms.  The 
        board's compensation is governed by section 15.0575, subdivision 
        3. 
           Sec. 43.  Minnesota Statutes 2002, section 116O.09, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DUTIES.] (a) In addition to the duties and 
        powers assigned to the institutes in section 116O.08, the 
        agricultural utilization research institute shall: 
           (1) identify the various market segments characterized by 
        Minnesota's agricultural industry, address each segment's 
        individual needs, and identify development opportunities in each 
        segment for agricultural products; 
           (2) develop and implement a utilization program for each 
        segment that addresses its development needs and identifies 
        techniques to meet those needs opportunities; 
           (3) monitor and coordinate research among the public and 
        private organizations and individuals specifically addressing 
        procedures to transfer new technology to businesses, farmers, 
        and individuals; 
           (4) provide research grants to public and private 
        educational institutions and other organizations that are 
        undertaking basic and applied research that would to promote the 
        development of the various emerging agricultural industries; and 
           (5) provide financial assistance including, but not limited 
        to:  (i) direct loans, guarantees, interest subsidy payments, 
        and equity investments; and (ii) participation in loan 
        participations.  The board of directors shall establish the 
        terms and conditions of the financial assistance. assist 
        organizations and individuals with market analysis and product 
        marketing implementations; 
           (6) to the extent possible earn and receive revenue from 
        contracts, patents, licenses, royalties, grants, 
        fees-for-service, and memberships; 
           (7) work with the department of agriculture, the United 
        States Department of Agriculture, the department of trade and 
        economic development, and other agencies to maximize marketing 
        opportunities locally, nationally, and internationally; and 
           (8) leverage available funds from federal, state, and 
        private sources to develop new markets and value added 
        opportunities for Minnesota agricultural products. 
           (b) The agricultural utilization research institute board 
        of directors shall have the sole approval authority for 
        establishing agricultural utilization research priorities, 
        requests for proposals to meet those priorities, awarding of 
        grants, hiring and direction of personnel, and other 
        expenditures of funds consistent with the adopted and approved 
        mission and goals of the agricultural utilization research 
        institute.  The actions and expenditures of the agricultural 
        utilization research institute are subject to audit and regular 
        annual report to the legislature in general and specifically the 
        house of representatives agriculture committee, the senate 
        agriculture and rural development committee, the house of 
        representatives environment and natural resources finance 
        committee, and the senate environment and agriculture budget 
        division.  The institute shall annually report by February 1 to 
        the senate and house of representatives standing committees with 
        jurisdiction over agricultural policy and funding.  The report 
        must list projects initiated, progress on projects, and 
        financial information relating to expenditures, income from 
        other sources, and other information to allow the committees to 
        evaluate the effectiveness of the institute's activities. 
           Sec. 44.  Minnesota Statutes 2002, section 216C.41, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
        subdivision apply to this section. 
           (b) "Qualified hydroelectric facility" means a 
        hydroelectric generating facility in this state that: 
           (1) is located at the site of a dam, if the dam was in 
        existence as of March 31, 1994; and 
           (2) begins generating electricity after July 1, 1994, or 
        generates electricity after substantial refurbishing of a 
        facility that begins after July 1, 2001. 
           (c) "Qualified wind energy conversion facility" means a 
        wind energy conversion system that: 
           (1) produces two megawatts or less of electricity as 
        measured by nameplate rating and begins generating electricity 
        after December 31, 1996, and before July 1, 1999; 
           (2) begins generating electricity after June 30, 1999, 
        produces two megawatts or less of electricity as measured by 
        nameplate rating, and is: 
           (i) located within one county and owned by a natural person 
        who owns the land where the facility is sited owned by a 
        resident of Minnesota or an entity that is organized under the 
        laws of this state and is not prohibited from owning 
        agricultural land under section 500.24; 
           (ii) owned by a Minnesota small business as defined in 
        section 645.445; 
           (iii) owned by a nonprofit organization; or 
           (iv) owned by a tribal council if the facility is located 
        within the boundaries of the reservation; or 
           (3) begins generating electricity after June 30, 1999, 
        produces seven megawatts or less of electricity as measured by 
        nameplate rating, and: 
           (i) is owned by a cooperative organized under chapter 308A; 
        and 
           (ii) all shares and membership in the cooperative are held 
        by natural persons or estates, at least 51 percent of whom 
        reside in a county or contiguous to a county where the wind 
        energy production facilities of the cooperative are located. 
           (d) "Qualified on-farm biogas recovery facility" means an 
        anaerobic digester system that: 
           (1) is located at the site of an agricultural operation; 
           (2) is owned by a natural person who owns or rents the land 
        where the facility is located; and 
           (3) begins generating electricity after July 1, 2001.  
           (e) "Anaerobic digester system" means a system of 
        components that processes animal waste based on the absence of 
        oxygen and produces gas used to generate electricity. 
           Sec. 45.  Minnesota Statutes 2002, section 273.13, 
        subdivision 23, is amended to read: 
           Subd. 23.  [CLASS 2.] (a) Class 2a property is agricultural 
        land including any improvements that is homesteaded.  The market 
        value of the house and garage and immediately surrounding one 
        acre of land has the same class rates as class 1a property under 
        subdivision 22.  The value of the remaining land including 
        improvements up to and including $600,000 market value has a net 
        class rate of 0.55 percent of market value.  The remaining 
        property over $600,000 market value has a class rate of one 
        percent of market value. 
           (b) Class 2b property is (1) real estate, rural in 
        character and used exclusively for growing trees for timber, 
        lumber, and wood and wood products; (2) real estate that is not 
        improved with a structure and is used exclusively for growing 
        trees for timber, lumber, and wood and wood products, if the 
        owner has participated or is participating in a cost-sharing 
        program for afforestation, reforestation, or timber stand 
        improvement on that particular property, administered or 
        coordinated by the commissioner of natural resources; (3) real 
        estate that is nonhomestead agricultural land; or (4) a landing 
        area or public access area of a privately owned public use 
        airport.  Class 2b property has a net class rate of one percent 
        of market value. 
           (c) Agricultural land as used in this section means 
        contiguous acreage of ten acres or more, used during the 
        preceding year for agricultural purposes.  "Agricultural 
        purposes" as used in this section means the raising or 
        cultivation of agricultural products or enrollment in the 
        Reinvest in Minnesota program under sections 103F.501 to 
        103F.535 or the federal Conservation Reserve Program as 
        contained in Public Law Number 99-198.  Contiguous acreage on 
        the same parcel, or contiguous acreage on an immediately 
        adjacent parcel under the same ownership, may also qualify as 
        agricultural land, but only if it is pasture, timber, waste, 
        unusable wild land, or land included in state or federal farm 
        programs.  Agricultural classification for property shall be 
        determined excluding the house, garage, and immediately 
        surrounding one acre of land, and shall not be based upon the 
        market value of any residential structures on the parcel or 
        contiguous parcels under the same ownership. 
           (d) Real estate, excluding the house, garage, and 
        immediately surrounding one acre of land, of less than ten acres 
        which is exclusively and intensively used for raising or 
        cultivating agricultural products, shall be considered as 
        agricultural land.  
           Land shall be classified as agricultural even if all or a 
        portion of the agricultural use of that property is the leasing 
        to, or use by another person for agricultural purposes. 
           Classification under this subdivision is not determinative 
        for qualifying under section 273.111. 
           The property classification under this section supersedes, 
        for property tax purposes only, any locally administered 
        agricultural policies or land use restrictions that define 
        minimum or maximum farm acreage. 
           (e) The term "agricultural products" as used in this 
        subdivision includes production for sale of:  
           (1) livestock, dairy animals, dairy products, poultry and 
        poultry products, fur-bearing animals, horticultural and nursery 
        stock described in sections 18.44 to 18.61, fruit of all kinds, 
        vegetables, forage, grains, bees, and apiary products by the 
        owner; 
           (2) fish bred for sale and consumption if the fish breeding 
        occurs on land zoned for agricultural use; 
           (3) the commercial boarding of horses if the boarding is 
        done in conjunction with raising or cultivating agricultural 
        products as defined in clause (1); 
           (4) property which is owned and operated by nonprofit 
        organizations used for equestrian activities, excluding racing; 
           (5) game birds and waterfowl bred and raised for use on a 
        shooting preserve licensed under section 97A.115; 
           (6) insects primarily bred to be used as food for animals; 
           (7) trees, grown for sale as a crop, and not sold for 
        timber, lumber, wood, or wood products; and 
           (8) maple syrup taken from trees grown by a person licensed 
        by the Minnesota department of agriculture under chapter 28A as 
        a food processor. 
           (f) If a parcel used for agricultural purposes is also used 
        for commercial or industrial purposes, including but not limited 
        to:  
           (1) wholesale and retail sales; 
           (2) processing of raw agricultural products or other goods; 
           (3) warehousing or storage of processed goods; and 
           (4) office facilities for the support of the activities 
        enumerated in clauses (1), (2), and (3), 
        the assessor shall classify the part of the parcel used for 
        agricultural purposes as class 1b, 2a, or 2b, whichever is 
        appropriate, and the remainder in the class appropriate to its 
        use.  The grading, sorting, and packaging of raw agricultural 
        products for first sale is considered an agricultural purpose.  
        A greenhouse or other building where horticultural or nursery 
        products are grown that is also used for the conduct of retail 
        sales must be classified as agricultural if it is primarily used 
        for the growing of horticultural or nursery products from seed, 
        cuttings, or roots and occasionally as a showroom for the retail 
        sale of those products.  Use of a greenhouse or building only 
        for the display of already grown horticultural or nursery 
        products does not qualify as an agricultural purpose.  
           The assessor shall determine and list separately on the 
        records the market value of the homestead dwelling and the one 
        acre of land on which that dwelling is located.  If any farm 
        buildings or structures are located on this homesteaded acre of 
        land, their market value shall not be included in this separate 
        determination.  
           (g) To qualify for classification under paragraph (b), 
        clause (4), a privately owned public use airport must be 
        licensed as a public airport under section 360.018.  For 
        purposes of paragraph (b), clause (4), "landing area" means that 
        part of a privately owned public use airport properly cleared, 
        regularly maintained, and made available to the public for use 
        by aircraft and includes runways, taxiways, aprons, and sites 
        upon which are situated landing or navigational aids.  A landing 
        area also includes land underlying both the primary surface and 
        the approach surfaces that comply with all of the following:  
           (i) the land is properly cleared and regularly maintained 
        for the primary purposes of the landing, taking off, and taxiing 
        of aircraft; but that portion of the land that contains 
        facilities for servicing, repair, or maintenance of aircraft is 
        not included as a landing area; 
           (ii) the land is part of the airport property; and 
           (iii) the land is not used for commercial or residential 
        purposes. 
        The land contained in a landing area under paragraph (b), clause 
        (4), must be described and certified by the commissioner of 
        transportation.  The certification is effective until it is 
        modified, or until the airport or landing area no longer meets 
        the requirements of paragraph (b), clause (4).  For purposes of 
        paragraph (b), clause (4), "public access area" means property 
        used as an aircraft parking ramp, apron, or storage hangar, or 
        an arrival and departure building in connection with the airport.
           Sec. 46.  [FEEDLOT ENVIRONMENT REVIEW STUDY; REPORT.] 
           The environmental quality board shall conduct a study 
        identifying and evaluating information pertaining to 
        environmental review of feedlots of fewer than 1,000 animal 
        units in Minnesota that must include: 
           (1) significant issues that have been raised during the 
        environmental review process; 
           (2) avoidance, mitigation, and treatment that resulted from 
        consideration of environmental impacts; and 
           (3) an assessment of the impact of Minnesota Statutes, 
        section 116D.04, subdivision 2a, paragraph (d), on public 
        participation. 
           The study shall also examine the process of public 
        notifications, hearings, and opportunities for local residents 
        and property owners to provide input under the pollution control 
        agency's feedlot rules permitting process. 
           The board shall report by January 15, 2004, to the 
        committees of the house of representatives and the senate with 
        jurisdiction over agricultural, environmental, and judiciary 
        policy, and agricultural finance on the results of the study. 
           Sec. 47.  [REPEALER.] 
           Minnesota Statutes 2002, sections 17.110; 18B.05, 
        subdivision 2; 37.26; 41A.09, subdivisions 1, 5a, 6, 7, and 8, 
        are repealed. 

                                   ARTICLE 4
                   PLANT PROTECTION AND EXPORT CERTIFICATION 
           Section 1.  [18G.01] [PLANT PROTECTION; POWERS OF 
        COMMISSIONER OF AGRICULTURE.] 
           (a) This chapter authorizes the commissioner to abate, 
        suppress, eradicate, prevent, or otherwise regulate the 
        introduction or establishment of plant pests that threaten 
        Minnesota's agricultural, forest, or horticultural interests or 
        the general ecological quality of the state. 
           (b) The commissioner may employ entomologists, plant 
        pathologists, and other qualified employees necessary to 
        administer and enforce this chapter. 
           Sec. 2.  [18G.02] [DEFINITIONS.] 
           Subdivision 1.  [SCOPE.] The definitions in this section 
        apply to this chapter. 
           Subd. 2.  [BIOLOGICAL CONTROL AGENT.] "Biological control 
        agent" means a parasite, predator, pathogen, or competitive 
        organism intentionally released by humans for the purpose of 
        biological control with the intent of causing a reduction of a 
        host or prey population. 
           Subd. 3.  [CERTIFICATE.] "Certificate" means a document 
        authorized or prepared by a federal or state regulatory official 
        that affirms, declares, or verifies that an article, plant, 
        product, shipment, or other officially regulated item meets 
        phytosanitary, nursery inspection, pest freedom, plant 
        registration or certification, or other legal requirements. 
           Subd. 4.  [CERTIFICATION.] "Certification" means a 
        regulatory official's act of affirming, declaring, or verifying 
        compliance with phytosanitary, nursery inspection, pest freedom, 
        plant registration or certification, or other legal requirements.
           Subd. 5.  [COMMISSIONER.] "Commissioner" means the 
        commissioner of agriculture or the commissioner's designated 
        employee, representative, or agent. 
           Subd. 6.  [COMPLIANCE AGREEMENT.] "Compliance agreement" 
        means a written agreement between a person and a regulatory 
        agency to achieve compliance with regulatory requirements. 
           Subd. 7.  [CONVEYANCE.] "Conveyance" is a means of 
        transportation. 
           Subd. 8.  [DEPARTMENT.] "Department" means the department 
        of agriculture. 
           Subd. 9.  [EMERGENCY REGULATION.] "Emergency regulation" 
        means a regulation placed in effect by the commissioner without 
        prior public notice in order to take necessary and immediate 
        regulatory action. 
           Subd. 10.  [ERADICATION.] "Eradication" means elimination 
        of a pest from a defined geographic area.  
           Subd. 11.  [EXOTIC SPECIES.] "Exotic species" means a 
        species that is not native to the area.  Exotic species also 
        means a species occurring outside its natural range. 
           Subd. 12.  [HARMFUL PLANT PEST.] "Harmful plant pest" means 
        a plant pest that constitutes a significant threat to the 
        agricultural, forest, or horticultural interests of Minnesota or 
        the general environmental quality of the state. 
           Subd. 13.  [INFECTED.] "Infected" means a plant that is: 
           (1) contaminated with pathogenic microorganisms; 
           (2) being parasitized; 
           (3) a host or carrier of an infectious, transmissible, or 
        contagious pest; or 
           (4) so exposed to a plant listed in clause (1), (2), or (3) 
        that one of those conditions can reasonably be expected to exist 
        and the plant may also pose a risk of contamination to other 
        plants or the environment. 
           Subd. 14.  [INFESTED.] "Infested" means a plant has been 
        overrun by plant pests, including weeds. 
           Subd. 15.  [INVASIVE SPECIES.] "Invasive species" means an 
        exotic or nonnative species whose introduction and establishment 
        causes, or may cause, economic or environmental harm or harm to 
        human health. 
           Subd. 16.  [MARK.] "Mark" means an official indicator 
        affixed by the commissioner for purposes of identification or 
        separation, to, on, around, or near, plants or plant material 
        known or suspected to be infected with a plant pest.  This 
        includes, but is not limited to, paint, markers, tags, seals, 
        stickers, tape, ribbons, signs, or placards. 
           Subd. 17.  [NURSERY STOCK.] "Nursery stock" means a plant 
        intended for planting or propagation, including, but not limited 
        to, trees, shrubs, vines, perennials, biennials, grafts, 
        cuttings, and buds that may be sold for propagation, whether 
        cultivated or wild, and all viable parts of these plants.  
        Nursery stock does not include: 
           (1) field and forage crops; 
           (2) the seeds of grasses, cereal grains, vegetable crops, 
        and flowers; 
           (3) vegetable plants, bulbs, or tubers; 
           (4) cut flowers, unless stems or other portions are 
        intended for propagation; 
           (5) annuals; or 
           (6) Christmas trees. 
           Subd. 18.  [OWNER.] "Owner" includes, but is not limited 
        to, the person with the legal right of possession, 
        proprietorship of, or responsibility for the property or place 
        where any of the articles regulated in this chapter are found, 
        or the person who is in possession of, proprietorship of, or has 
        responsibility for the regulated articles. 
           Subd. 19.  [PERMIT.] "Permit" means a document issued by a 
        regulatory official that allows the movement of any regulated 
        item from one location to another in accordance with specified 
        conditions or requirements and for a specified purpose. 
           Subd. 20.  [PERSON.] "Person" means an individual, firm, 
        corporation, partnership, association, trust, joint stock 
        company, or unincorporated organization; the state; a state 
        agency; or a political subdivision. 
           Subd. 21.  [PEST.] "Pest" means any living agent capable of 
        reproducing itself that causes or may potentially cause harm to 
        plants or other biotic organisms. 
           Subd. 22.  [PHYTOSANITARY CERTIFICATE OR EXPORT 
        CERTIFICATE.] "Phytosanitary certificate" or "export certificate"
        means a document authorized or prepared by a duly authorized 
        federal or state official that affirms, declares, or verifies 
        that an article, nursery stock, plant, plant product, shipment, 
        or any other officially regulated article meets applicable, 
        legally established, plant pest regulations, including this 
        chapter. 
           Subd. 23.  [PLANT.] "Plant" means a plant, plant product, 
        plant part, or reproductive or propagative part of a plant, 
        plant product, or plant part, including all growing media, 
        packing material, or containers associated with the plant, plant 
        part, or plant product. 
           Subd. 24.  [PLANT PEST.] "Plant pest" includes, but is not 
        limited to, an invasive species or any pest of plants, 
        agricultural commodities, horticultural products, nursery stock, 
        or noncultivated plants by organisms such as insects, snails, 
        nematodes, fungi, viruses, bacterium, microorganisms, 
        mycoplasma-like organisms, weeds, plants, and parasitic plants. 
           Subd. 25.  [PRECLEARANCE.] "Preclearance" means an 
        agreement between quarantine officials of exporting and 
        importing states to pass plants, plant material, or other items 
        through quarantine by allowing the exporting state to inspect 
        the plants preshipment, rather than the importing state 
        inspecting the shipment upon arrival. 
           Subd. 26.  [PUBLIC NUISANCE.] "Public nuisance" means: 
           (1) a plant, appliance, conveyance, or article that is 
        infested with plant pests that may cause significant damage or 
        harm; or 
           (2) premises where a plant pest is found. 
           Subd. 27.  [QUARANTINE.] "Quarantine" means an enforced 
        isolation or restriction of free movement of plants, plant 
        material, animals, animal products, or any article or material 
        in order to treat, control, or eradicate a plant pest. 
           Subd. 28.  [REGULATED ARTICLE.] "Regulated article" means 
        any item, the movement of which is governed by quarantine or 
        this chapter. 
           Subd. 29.  [REGULATED NONQUARANTINE PEST.] "Regulated 
        nonquarantine pest" means a plant pest that has not been 
        quarantined by state or federal agencies and whose presence in 
        plants or articles may pose an unacceptable risk to nursery 
        stock, other plants, the environment, or human activities. 
           Subd. 30.  [SIGNIFICANT DAMAGE OR HARM.] "Significant 
        damage" or "harm" means a level of adverse impact that results 
        in economic damage, injury, or loss that exceeds the cost of 
        control for a particular crop. 
           Sec. 3.  [18G.03] [POWERS AND DUTIES OF COMMISSIONER.] 
           Subdivision 1.  [ENTRY AND INSPECTION.] (a) The 
        commissioner may enter and inspect a public or private place 
        that might harbor plant pests and may require that the owner 
        destroy or treat plant pests, plants, or other material. 
           (b) If the owner fails to properly comply with a directive 
        of the commissioner, the commissioner may have any necessary 
        work done at the owner's expense.  The commissioner shall notify 
        the owner of the deadline for paying those expenses.  If the 
        owner does not reimburse the commissioner for an expense within 
        a time specified by the commissioner, the expense is a charge 
        upon the county as provided in subdivision 4. 
           (c) If a dangerous plant pest infestation or infection 
        threatens plants of an area in the state, the commissioner may 
        take any measures necessary to eliminate or alleviate the danger.
           (d) The commissioner may collect fees required by this 
        chapter. 
           (e) The commissioner may issue and enforce a written or 
        printed "stop-sale" order to the owner or custodian of any 
        plants or articles infested or infected with dangerously 
        injurious plant pests. 
           Subd. 2.  [RULES.] The commissioner may adopt rules to 
        carry out the purposes of this chapter.  
           Subd. 3.  [QUARANTINE.] The commissioner may impose a 
        quarantine to restrict or prohibit the transportation or 
        distribution of plants or other materials capable of carrying 
        plant pests into or through any part of this state. 
           Subd. 4.  [COLLECTION OF CHARGES FOR WORK DONE FOR 
        OWNER.] If the commissioner incurs an expense in conjunction 
        with carrying out subdivision 1 and is not reimbursed by the 
        owner of the land, the expense is a legal charge against the 
        land.  After the expense is incurred, the commissioner shall 
        file verified and itemized statements of the cost of all 
        services rendered with the county auditor of the county in which 
        the land is located.  The county auditor shall place a lien in 
        favor of the commissioner against the land involved, which must 
        be certified by the county auditor and collected according to 
        section 429.101. 
           Sec. 4.  [18G.04] [ERADICATION, CONTROL, AND ABATEMENT OF 
        NUISANCES; ISSUING CONTROL ORDERS.] 
           Subdivision 1.  [PUBLIC NUISANCE.] Any premises, plant, 
        appliance, conveyance, or article that is infected or infested 
        with plant pests that may cause significant damage or harm and 
        any premises where any plant pest is found is a public nuisance 
        and must be prosecuted as a public nuisance in all actions and 
        proceedings.  All legal remedies for the prevention and 
        abatement of a nuisance apply to a public nuisance under this 
        section.  It is unlawful for any person to maintain a public 
        nuisance. 
           Subd. 2.  [CONTROL ORDER.] In order to prevent the 
        introduction or spread of harmful or dangerous plant pests, the 
        commissioner may issue orders for necessary control measures. 
        These orders may indicate the type of specific control to be 
        used, the compound or material, the manner or the time of 
        application, and who is responsible for carrying out the control 
        order.  Control orders may include directions to control or 
        abate the plant pest to an acceptable level; eradicate the plant 
        pest; restrict the movement of the plant pest or any material, 
        article, appliance, plant, or means of conveyance suspected to 
        be carrying the plant pest; or destroy plants or plant products 
        infested or infected with a plant pest.  Material suspected of 
        being infested or infected with a plant pest may be confiscated 
        by the commissioner. 
           Sec. 5.  [18G.05] [DISCOVERY OF PLANT PESTS; OFFICIAL 
        MARKING OF INFESTED OR INFECTED ARTICLES.] 
           Upon knowledge of the existence of a dangerous or injurious 
        plant pest or invasive species within the state, the 
        commissioner may conspicuously mark all plants, infested areas, 
        materials, and articles known or suspected to be infected or 
        infested with the plant pest or invasive species.  Persons, 
        owners, or tenants in possession of the premises or area in 
        which the existence of the plant pest or invasive species is 
        suspected must be notified by the commissioner with prescribed 
        control measures.  A person must comply with the commissioner's 
        control order within the prescribed time.  If the commissioner 
        determines that satisfactory control or mitigation of the pest 
        has been achieved, the order must be released. 
           Sec. 6.  [18G.06] [ESTABLISHMENT OF QUARANTINE 
        RESTRICTIONS.] 
           Subdivision 1.  [SCOPE.] The commissioner may impose a 
        quarantine restricting or regulating the production, movement, 
        or existence of plants, plant products, agricultural 
        commodities, crop seed, farm products, or other articles or 
        materials in order that the introduction or spread of a plant 
        pest may be prevented or limited or an existing plant pest may 
        be controlled or eradicated. 
           Subd. 2.  [QUARANTINE NOTICE.] (a) The commissioner may 
        issue orders to take prompt regulatory action in plant pest 
        emergencies on regulated articles.  If continuing quarantine 
        action is required, a formal quarantine may be imposed.  Orders 
        may be issued to retain necessary quarantine action on a few 
        properties if eradication treatments have been applied and 
        continuing quarantine action is no longer necessary for the 
        majority of the regulated area. 
           (b) The commissioner may place an emergency regulation or 
        quarantine in effect without prior public notice in order to 
        take immediate regulatory action to prevent the introduction or 
        establishment of a plant pest. 
           (c) The commissioner may enter into cooperative agreements 
        with the United States Department of Agriculture and other 
        federal, state, city, or county agencies to assist in the 
        enforcement of federal quarantines.  The commissioner may adopt 
        a quarantine or regulation against a pest or an area not covered 
        by a federal quarantine.  The commissioner may seize, destroy, 
        or require treatment of products moved from a federally 
        regulated area if they were not moved in accordance with the 
        federal quarantine regulations or, if certified, they were found 
        to be infested with the pest organism. 
           (d) The commissioner may impose a quarantine against a 
        plant pest that is not quarantined in other states to prevent 
        the spread of the plant pest within this state.  The 
        commissioner may enact a quarantine against a plant pest of 
        regional or national significance even when no federal domestic 
        quarantine has been adopted.  These quarantines regulate 
        intrastate movement between quarantined and nonquarantined areas 
        of this state.  The commissioner may enact a parallel state 
        quarantine if there is a federal quarantine applied to a portion 
        of the state. 
           (e) The commissioner may impose a state exterior quarantine 
        if the plant pest is not established in this state but is 
        established in other states.  State exterior quarantines may be 
        enacted even if no federal domestic quarantine has been 
        adopted.  The commissioner may issue control orders at 
        destinations necessary to prevent the introduction or spread of 
        plant pests. 
           Subd. 3.  [DESCRIPTION OF REGULATED AREAS.] (a) The 
        regulated area to be described in a quarantine may involve the 
        entire state, portions of the state, or certain names and 
        locations of infested properties. 
           (b) Regulated quarantine areas may be subdivided into 
        suppression areas and generally infested areas if it is 
        desirable to control movement into suppression areas from 
        generally infested areas. 
           (c) Quarantine provisions or areas regulated may be amended 
        by the commissioner through publication of a notice to that 
        effect in local newspapers or through direct written notice to 
        affected property owners. 
           (d) If an infestation in a specific regulated area has been 
        eliminated to the extent that movement of the regulated articles 
        no longer present a pest risk, the quarantine in that area may 
        be removed.  The commissioner may also exempt areas from 
        specified requirements until eradication has been achieved. 
           Subd. 4.  [MOVEMENT OF REGULATED ARTICLES.] (a) A regulated 
        article may be refused entry into this state if it is prohibited 
        or is required to be certified and comes from an area regulated 
        by a state or federal quarantine.  The owner or carrier of 
        regulated articles that are reportedly originating in 
        nonregulated areas of a quarantined state must provide proof of 
        origin of the regulated articles.  An invoice, waybill, or other 
        shipping document satisfactory to the receiving state regulatory 
        official is acceptable as proof of origin. 
           (b) Certificates or permits are required for the movement 
        of regulated articles from a regulated area to any point outside 
        the regulated area.  Certificates or permits are not required 
        for a regulated article originating outside of a regulated area 
        moving to another nonregulated area or moving through or 
        reshipped from a regulated area when the point of origin of the 
        article is clearly indicated on a waybill, bill of lading, 
        shipper's invoice, or other similar document accompanying the 
        shipment.  Shipments moving through or being reshipped from a 
        regulated area must be safeguarded against infestation while 
        within the regulated area. 
           Subd. 5.  [PUBLIC NOTIFICATION OF A STATE QUARANTINE OR 
        EMERGENCY REGULATION.] (a) For pest threats of imminent concern, 
        the commissioner may declare an emergency quarantine or enact 
        emergency orders. 
           (b) If circumstances permit, public notice and a public 
        hearing must be held to solicit comments regarding the proposed 
        state quarantine.  If a pest threat is of imminent concern and 
        there is insufficient time to allow full public comment on the 
        proposed quarantine, the commissioner may impose an emergency 
        quarantine until a state quarantine can be implemented. 
           (c) Upon establishment of a state quarantine, and upon 
        institution of modifications or repeal, notices must be sent to 
        the principal parties of interest, including federal and state 
        authorities, and to organizations representing the public 
        involved in the restrictive measures. 
           Subd. 6.  [QUARANTINE REPEAL.] A quarantine may be repealed 
        when its purpose has been accomplished.  If a quarantine has 
        attained its objective or if the progress of events has clearly 
        proved that attainment is not possible by the restrictions 
        adopted, a quarantine may be modified or repealed. 
           Sec. 7.  [18G.07] [TREE CARE AND TREE TRIMMING COMPANY 
        REGISTRY.] 
           Subdivision 1. [CREATION OF REGISTRY.] The commissioner 
        shall maintain a list of all persons and companies that provide 
        tree care or tree trimming services in Minnesota.  All tree care 
        providers, tree trimmers, and persons who remove trees, limbs, 
        branches, brush, or shrubs for hire must provide the following 
        information to the commissioner: 
           (1) accurate and up-to-date business name, address, and 
        telephone number; 
           (2) a complete list of all Minnesota counties in which they 
        work; and 
           (3) a complete list of persons in the business who are 
        certified by the International Society of Arborists. 
           Subd. 2.  [INFORMATION DISSEMINATION.] The commissioner 
        shall provide registered tree care companies with information 
        and data regarding any existing or potential regulated forest 
        pest infestations within the state. 
           Sec. 8.  [18G.09] [SHIPMENT OF PLANT PESTS AND BIOLOGICAL 
        CONTROL AGENTS.] 
           Shipment, introduction into, or release in Minnesota of (1) 
        a plant pest, noxious weed, or other organism that may directly 
        or indirectly affect Minnesota's plant life as a harmful or 
        dangerous pest, parasite, or predator of other organisms, or (2) 
        an arthropod, is prohibited, except under permit issued by the 
        commissioner. 
           No person may sell, offer for sale, move, convey, 
        transport, deliver, ship, or offer for shipment any plant pest, 
        or biological control agent without a permit from the United 
        States Department of Agriculture, Animal and Plant Health 
        Inspection Service or its state equivalent.  A permit may be 
        issued only after the commissioner determines that the proposed 
        shipment or use will not create a hazard to the agricultural, 
        forest, or horticultural interests of this state or the state's 
        general environmental quality.  For interstate movement, the 
        permit must be affixed conspicuously to the exterior of each 
        shipping container, box, package, or appliance; accompany each 
        shipping container, box, package, or appliance; or comply with 
        other directions of the commissioner.  This section does not 
        apply to intrastate shipments of federal or state approved 
        biological control agents used in this state for control of 
        plant pests.  Shipping containers must be escape-proof and the 
        commissioner shall specify labeling and shipping protocols. 
           Sec. 9.  [18G.10] [EXPORT CERTIFICATION, INSPECTIONS, 
        CERTIFICATES, PERMITS, AND FEES.] 
           Subdivision 1.  [PURPOSE.] To ensure continued access to 
        foreign and domestic markets, the commissioner shall provide 
        inspection and certification services to ensure that appropriate 
        phytosanitary restrictions or requirements are fully met. 
           Subd. 2.  [DISPOSITION AND USE OF MONEY RECEIVED.] All fees 
        and penalties collected under this chapter and interest 
        attributable to the money in the account must be deposited in 
        the state treasury and credited to the nursery and phytosanitary 
        account in the agricultural fund.  Money in the account, 
        including interest earned, is appropriated to the commissioner 
        for the administration and enforcement of this chapter. 
           Subd. 3.  [COOPERATIVE AGREEMENTS.] The commissioner may 
        enter into cooperative agreements with federal and state 
        agencies for administration of the export certification 
        program.  An exporter of plants or plant products desiring to 
        originate shipments from Minnesota to a foreign country 
        requiring a phytosanitary certificate or export certificate must 
        submit an application to the commissioner. 
           Subd. 4.  [PHYTOSANITARY AND EXPORT 
        CERTIFICATES.] Application for phytosanitary certificates or 
        export certificates must be made on forms provided or approved 
        by the commissioner.  The commissioner shall conduct inspections 
        of plants, plant products, or facilities for persons that have 
        applied for or intend to apply for a phytosanitary certificate 
        or export certificate from the commissioner.  Inspections must 
        include one or more of the following as requested or required: 
           (1) an inspection of the plants or plant products intended 
        for export under a phytosanitary certificate or export 
        certificate; 
           (2) field inspections of growing plants to determine 
        presence or absence of plant diseases, if necessary; 
           (3) laboratory diagnosis for presence or absence of plant 
        diseases, if necessary; 
           (4) observation and evaluation of procedures and facilities 
        utilized in handling plants and plant products, if necessary; 
        and 
           (5) review of United States Department of Agriculture, 
        Federal Grain Inspection Service Official Export Grain 
        Inspection Certificate logs. 
           The commissioner may issue a phytosanitary certificate or 
        export certificate if the plants or plant products 
        satisfactorily meet the requirements of the importing foreign 
        country and the United States Department of Agriculture 
        requirements.  The requirements of the destination countries 
        must be met by the applicant. 
           Subd. 5.  [CERTIFICATE FEES.] (a) The commissioner shall 
        assess the fees in paragraphs (b) to (f) for the inspection, 
        service, and work performed in carrying out the issuance of a 
        phytosanitary certificate or export certificate.  The inspection 
        fee must be based on mileage and inspection time. 
           (b) Mileage charge:  current United States Internal Revenue 
        Service mileage rate. 
           (c) Inspection time:  $50 per hour minimum or fee necessary 
        to cover department costs.  Inspection time includes the driving 
        time to and from the location in addition to the time spent 
        conducting the inspection. 
           (d) A fee must be charged for any certificate issued that 
        requires laboratory analysis before issuance.  The fee must be 
        deposited into the laboratory account as authorized in section 
        17.85. 
           (e) Certificate fee for product value greater than $250:  
        $75 for each phytosanitary or export certificate issued for any 
        single shipment valued at more than $250 in addition to any 
        mileage or inspection time charges that are assessed. 
           (f) Certificate fee for product value less than $250:  $25 
        for each phytosanitary or export certificate issued for any 
        single shipment valued at less than $250 in addition to any 
        mileage or inspection time charges that are assessed. 
           Subd. 6.  [CERTIFICATE DENIAL OR CANCELLATION.] The 
        commissioner may deny or cancel the issuance of a phytosanitary 
        or export certificate for any of the following reasons: 
           (1) failure of the plants or plant products to meet 
        quarantine, regulations, and requirements imposed by the country 
        for which the phytosanitary or export certificate is being 
        requested; 
           (2) failure to completely or accurately provide the 
        information requested on the application form; 
           (3) failure to ship the exact plants or plant products 
        which were inspected and approved; or 
           (4) failure to pay any fees or costs due the commissioner. 
           Subd. 7.  [PLANT PROTECTION INSPECTIONS, CERTIFICATES, 
        PERMITS, AND FEES.] (a) The commissioner may provide inspection, 
        sampling, or certification services to ensure that Minnesota 
        plant products or commodities meet import requirements of other 
        states or countries. 
           (b) The state plant regulatory official may issue permits 
        and certificates verifying that various Minnesota agricultural 
        products or commodities meet specified phytosanitary 
        requirements, treatment requirements, or pest absence assurances 
        based on determinations by the commissioner.  The commissioner 
        may collect fees sufficient to recover costs for these permits 
        or certificates.  The fees must be deposited in the nursery and 
        phytosanitary account. 
           Sec. 10.  [18G.11] [COOPERATION WITH OTHER JURISDICTIONS.] 
           The commissioner may enter into cooperative agreements with 
        organizations, persons, civic groups, governmental agencies, or 
        other organizations to adopt and execute plans to detect and 
        control areas infested or infected with harmful plant pests.  
        The cooperative agreements may include provisions of joint 
        funding of any control treatment. 
           If a harmful plant pest infestation or infection occurs and 
        cannot be adequately controlled by individual persons, owners, 
        tenants, or local units of government, the commissioner may 
        conduct the necessary control measures independently or on a 
        cooperative basis with federal or other units of government. 
           Sec. 11.  [18G.12] [INVASIVE SPECIES MANAGEMENT AND 
        INVESTIGATION.] 
           Subdivision 1.  [PLANT PEST AND INVASIVE SPECIES RESEARCH.] 
        The commissioner shall conduct research to prevent the 
        introduction or spread of invasive species and plant pests into 
        the state and to investigate the feasibility of their control or 
        eradication. 
           Subd. 2.  [STATEWIDE PROGRAM.] The commissioner shall 
        establish a statewide program to prevent the introduction and 
        the spread of harmful plant pest and terrestrial invasive 
        species.  To the extent possible, the program must provide 
        coordination of efforts among governmental entities and private 
        organizations. 
           Subd. 3.  [INVASIVE SPECIES MANAGEMENT PLAN.] The 
        commissioner shall prepare and maintain a long-term terrestrial 
        invasive species management plan which may include specific 
        plans for individual species.  The plan must address: 
           (1) coordination strategies for detection and prevention of 
        accidental introductions; 
           (2) methods to disseminate information about harmful 
        invasive species to the general public and appropriate 
        agricultural and resource management agencies or organizations; 
           (3) coordination of control efforts for selected harmful 
        terrestrial invasive species; and 
           (4) participation by local units of government and other 
        state and federal agencies in the development and implementation 
        of local management efforts. 
           Subd. 4.  [REGIONAL COOPERATION.] The commissioner shall 
        seek cooperation with other states and Canadian provinces for 
        the purposes of management and control of harmful invasive 
        species. 
           Subd. 5.  [INVASIVE SPECIES ANNUAL REPORT.] By January 15 
        of each year, the commissioner shall submit a report on harmful 
        terrestrial invasive species to the chairs of the legislative 
        committees having jurisdiction over environmental and 
        agricultural resource issues.  The report must include: 
           (1) detailed information on expenditures for 
        administration, education, management, inspections, surveys, and 
        research; 
           (2) an overview of accomplishments achieved during the 
        prior calendar year; 
           (3) an analysis of the effectiveness of management 
        activities; 
           (4) information related to the participation of other state 
        and local units of government; 
           (5) information about shade tree protection efforts and 
        results; 
           (6) an assessment of future management needs; and 
           (7) proposed goals for the coming year. 
           Sec. 12.  [18G.13] [LOCAL PEST CONTROL.] 
           Subdivision 1.  [PURPOSE.] The purpose of this section is 
        to authorize political subdivisions to establish and fund their 
        own programs to control pests that are likely to cause economic 
        or environmental harm or harm to human health. 
           Subd. 2.  [CONTROL.] The governing body of a county, city, 
        or town may appropriate money to control native or exotic pests. 
           Subd. 3.  [COST.] The governing body of the political 
        subdivision may levy a tax on the taxable property within the 
        subdivision to defray the cost of the activities authorized 
        under subdivision 2. 
           Subd. 4.  [CERTIFICATES OF INDEBTEDNESS.] To provide funds 
        for activities authorized in subdivision 2 in advance of 
        collection of the tax under subdivision 3, the governing body 
        may, after the tax has been levied and certified to the county 
        auditor for collection, issue certificates of indebtedness in 
        anticipation of the collection and payment of the tax.  The 
        total amount of the certificates, including principal and 
        interest, must not exceed 90 percent of the amount of the levy 
        and must be payable from the proceeds of the levy no later than 
        two years from the date of issuance.  They must be issued on 
        terms and conditions determined by the governing body and must 
        be sold as provided in section 475.60.  If the governing body 
        determines that an emergency exists, it may make appropriations 
        from the proceeds of the certificates for authorized purposes 
        without complying with statutory or charter provisions requiring 
        that expenditures be based on a prior budget authorization or 
        other budgeting requirements. 
           Subd. 5.  [DEPOSIT OF PROCEEDS IN SEPARATE FUND.] The 
        proceeds of a tax levied under subdivision 3 or an issue of 
        certificates of indebtedness under subdivision 4 must be 
        deposited in the municipal treasury in a separate fund and spent 
        only for purposes authorized by this section.  If no 
        disbursement is made from the fund for a period of five years, 
        any money remaining in the fund may be transferred to the 
        general fund. 
           Subd. 6.  [PENALTY.] A person who prevents, obstructs, or 
        interferes with the county authorities or their agents in 
        carrying out subdivisions 2 to 5, or neglects to comply with the 
        rules and regulations of the county commissioners adopted under 
        authority of those subdivisions, is guilty of a misdemeanor. 
           Subd. 7.  [REGULATIONS; SCOPE.] A city council, board of 
        county commissioners, or town board may by resolution or 
        ordinance adopt and enforce regulations to control and prevent 
        the spread of plant pests and diseases.  The regulations may 
        authorize appropriate officers and employees to: 
           (1) enter and inspect any public or private place that 
        might harbor plant pests; 
           (2) provide for the summary removal of diseased trees from 
        public or private places if necessary to prevent the spread of 
        the disease; 
           (3) require the owner to destroy or treat plant pests, 
        diseased or invasive plants, or other infested material; and 
           (4) provide for the work at the expense of the owner. 
        The expense must be a lien upon the property and may be 
        collected as a special assessment as provided by section 429.101 
        or by charter.  In this subdivision, "private place" means every 
        place except a private home. 
           Sec. 13.  [18G.14] [MOSQUITO ABATEMENT.] 
           Subdivision 1.  [DECLARATION OF POLICY.] The abatement or 
        suppression of mosquitoes is advisable and necessary for the 
        maintenance and improvement of the health, welfare, and 
        prosperity of the people.  Areas where mosquitoes incubate or 
        hatch are declared to be public nuisances and may be abated 
        under this section.  Mosquito abatement may be undertaken under 
        sections 18.041 to 18.161 anywhere in the state by any 
        governmental unit. 
           Subd. 2.  [ESTABLISHING LOCAL BOARD.] A governmental unit 
        may engage in mosquito abatement and establish a mosquito 
        abatement board upon adoption of a resolution to that effect by 
        its governing body or upon adoption of a proposal to that effect 
        by the voters of the governmental unit in the manner provided in 
        subdivision 3. 
           Subd. 3.  [PETITION; HEARING; ELECTION.] If a petition 
        signed by five percent of the property owners or 250 owners, 
        whichever is less, is presented to a governing body requesting 
        the governmental unit to engage in mosquito abatement, a public 
        hearing must be held on the petition by the governing body 
        within 15 days of presentation of the petition.  If the 
        governing body does not, within 15 days after the hearing, adopt 
        a resolution to undertake mosquito abatement, the governing body 
        must order a vote to be taken at the next regular election or 
        town meeting on the proposal to undertake mosquito abatement.  
        The governing body must provide ballots to be used at the 
        election or meeting.  The ballot must bear the words "Shall the 
        (governmental unit) of ....... engage in mosquito abatement?"  
        If the majority of the votes are affirmative, the governing body 
        must take appropriate action as soon as possible to carry on 
        mosquito abatement.  A proposal to undertake mosquito abatement 
        that is rejected by the voters must not be resubmitted to the 
        voters for two years. 
           Subd. 4.  [DISCONTINUING PROGRAM.] If a governmental unit 
        by action of its governing body or voters has chosen to engage 
        in mosquito abatement, the abatement program may be discontinued 
        in the following manner: 
           (1) if the mosquito abatement was originally undertaken by 
        resolution of the governing body, then by the adoption of a 
        resolution to that effect by the governing body, or by the 
        adoption of a proposal to that effect by the voters of the 
        governmental unit in the manner provided in this subdivision; 
        and 
           (2) if the mosquito abatement was originally undertaken by 
        the adoption of a proposal to that effect by the voters of the 
        governmental unit, then only by the adoption of a proposal to 
        that effect by the voters of the governmental unit in the manner 
        provided in subdivision 5. 
           Subd. 5.  [PETITION; HEARING; AND ELECTION TO DISCONTINUE.] 
        If a petition signed by five percent of the property owners or 
        250 owners, whichever is less, is presented to the governing 
        body engaged in mosquito abatement requesting it to discontinue 
        mosquito abatement, a public hearing must be held on the 
        petition by the governing body within 15 days after presentation 
        of the petition.  If the governing body does not, within 15 days 
        after the hearing, adopt a resolution to discontinue mosquito 
        abatement, the governing body must order a vote to be taken at 
        the next regular election or town meeting on the proposal to 
        discontinue mosquito abatement.  The governing body shall 
        provide ballots to be used at the election or meeting.  The 
        ballot must bear the words "Shall the (governmental unit) of 
        ....... discontinue mosquito abatement?"  If a majority of the 
        votes are affirmative, the governing body must take appropriate 
        action as soon as possible to discontinue mosquito abatement.  A 
        proposal to discontinue mosquito abatement that is rejected by 
        the voters must not be resubmitted to the voters for two years. 
           Subd. 6.  [ABATEMENT BOARD.] A governing body that has 
        decided, in the manner required by this section, to engage in 
        mosquito abatement, shall appoint three persons to serve as 
        members of a mosquito abatement board with powers specified in 
        subdivision 8.  Each member of the board holds office at the 
        pleasure of the governing body and serves without compensation, 
        except that board members may be reimbursed for actual expenses 
        incurred in fulfilling board duties. 
           Subd. 7.  [OFFICERS; MEETINGS.] Immediately after 
        appointment of the board and at the first meeting in each 
        succeeding calendar year, the board shall elect a chair, a 
        secretary, a treasurer, and other necessary officers.  The board 
        shall provide for the time and place of holding regular meetings 
        and may establish rules for proceedings.  All meetings of the 
        board are open to the public.  Two members of the board 
        constitute a quorum, but one member may adjourn from day to 
        day.  The board shall keep a written record of its proceedings 
        and an itemized account of all expenditures and disbursements 
        and that record and account must be open at all reasonable times 
        for public inspection. 
           Subd. 8.  [POWERS OF BOARD.] A mosquito abatement board and 
        a joint board established under section 18.131 may, either by 
        board action or through its members, officers, agents, or 
        employees, as may be appropriate: 
           (1) enter any property within the governmental unit at 
        reasonable times to determine whether mosquito breeding exists; 
           (2) take necessary and proper steps for the abatement of 
        mosquitoes and other insects and arachnids, such as ticks, 
        mites, and spiders, as the commissioner may designate; 
           (3) subject to the paramount control of county and state 
        authorities, lagoon and clean up any stagnant pool of water and 
        clean up shores of lakes and streams and other mosquito breeding 
        places; 
           (4) spray with insecticides, approved by the commissioner, 
        areas in the governmental unit found to be breeding places for 
        mosquitoes or other insects or arachnids designated under clause 
        (2); 
           (5) purchase supplies and equipment and employ persons 
        necessary and proper for mosquito abatement; 
           (6) accept gifts of money or equipment to be used for 
        mosquito abatement; and 
           (7) enter into contracts necessary to accomplish mosquito 
        abatement. 
           Subd. 9.  [COOPERATE WITH STATE DEPARTMENTS.] Each mosquito 
        abatement board and each governmental unit engaged in mosquito 
        abatement shall cooperate with the University of Minnesota, the 
        commissioners of agriculture, health, natural resources, and 
        transportation, and the agricultural experiment station. 
           Subd. 10.  [TAX LEVY.] An annual tax may be levied for 
        mosquito abatement purposes on all taxable property in any 
        governmental unit undertaking mosquito abatement under this 
        section.  The tax must be certified, levied, and collected in 
        the same manner as other taxes levied by the governmental unit. 
           Subd. 11.  [CERTIFICATES OF INDEBTEDNESS.] At any time 
        after the annual tax levy has been certified to the county 
        auditor, and not earlier than October 10 in any year, any 
        governing body may, for the purpose of providing the necessary 
        funds for mosquito abatement for the succeeding year, by 
        resolution, issue and sell as many certificates of indebtedness 
        as may be needed in anticipation of the collection of taxes 
        levied under subdivision 10.  Certificates must not be issued in 
        excess of 50 percent of the amount of the tax levy, as spread by 
        the county auditor, to be collected for mosquito abatement.  No 
        certificate may be issued to become due and payable later than 
        December 31 of the year succeeding the year in which the tax 
        levy was made.  The certificates must not be sold for less than 
        par and accrued interest, and must not bear a greater rate of 
        interest than five percent per annum.  Each certificate must 
        state upon its face that the proceeds of the certificate must be 
        used for the mosquito abatement fund, the total amount of the 
        certificates issued, and the amount embraced in the tax levy for 
        that particular purpose.  The certificates must be numbered 
        consecutively and be in denominations of $100 or multiples of 
        $100, may have interest coupons attached, and must be otherwise 
        of a form, on terms, and made payable at a place that will best 
        aid in their negotiation.  The proceeds of the tax assessed and 
        collected on account of the mosquito abatement fund must be 
        irrevocably pledged for the redemption of the certificates 
        issued.  The certificates must be paid solely from the money 
        derived from the levy for the year against which the 
        certificates were issued, or, if they are not sufficient for 
        that purpose, from the levy for the mosquito abatement fund in 
        the next succeeding year.  The money derived from the sale of 
        the certificates must be credited to the mosquito abatement fund 
        for the calendar year immediately succeeding the levy and may 
        not be used or spent until the succeeding year.  No certificates 
        for any year may be issued until all certificates for prior 
        years have been paid.  No certificates may be extended. 
           Subd. 12.  [DEPOSIT AND USE OF FUNDS.] All money received 
        for mosquito abatement purposes, either by way of tax collection 
        or the sale of certificates of indebtedness, must be deposited 
        in the treasury of the governmental unit to the credit of a 
        special fund to be designated as the mosquito abatement fund, 
        must not be used for any other purpose, and must be drawn upon 
        by the proper officials upon the properly authenticated voucher 
        of the mosquito abatement board.  No money may be paid from the 
        fund except on orders drawn upon the officer of the governmental 
        unit having charge of the custody of the mosquito abatement fund 
        and signed by the chair and the secretary of the mosquito 
        abatement board.  Each mosquito abatement board shall annually 
        file an itemized statement of all receipts and disbursements 
        with its governing body. 
           Subd. 13.  [DUTIES OF COMMISSIONER.] The commissioner: 
           (1) may establish rules for the conduct of mosquito 
        abatement operations of governmental units and boards engaged in 
        mosquito abatement; and 
           (2) is an ex officio member of a mosquito abatement board.  
        The commissioner may appoint representatives to act for the 
        commissioner as ex officio members of boards. 
           Subd. 14.  [NATURAL RESOURCES.] The commissioner of natural 
        resources must approve mosquito abatement plans or order 
        modifications the commissioner of natural resources considers 
        necessary for the protection of public water, wild animals, and 
        natural resources before control operations are started on state 
        lands administered by the commissioner of natural resources or 
        in public waters listed on the department of natural resources 
        public waters inventory.  The commissioner of natural resources 
        may make necessary modifications in an approved plan or revoke 
        approval of a plan at any time upon written notice to the 
        governing body or mosquito abatement board. 
           Subd. 15.  [COOPERATION BETWEEN GOVERNMENTAL UNITS.] If two 
        or more adjacent governmental units have authorized mosquito 
        abatement and appointed the members of the mosquito abatement 
        board, the governing bodies may, by written contract, arrange 
        for pooling mosquito abatement funds, apportioning all costs, 
        cooperating in the use of equipment and personnel, and engaging 
        jointly in mosquito abatement upon terms and conditions and 
        subject to mutually agreed upon rules.  The immediate control 
        and management of the joint project may, by the terms of the 
        written contract, be entrusted to a joint committee composed of 
        the chair of each of the boards or other board members. 
           Subd. 16.  [UNORGANIZED TOWNS; POWERS OF COUNTY BOARD.] In 
        any town that is unorganized politically, the county board of 
        the county in which the town is situated has all the rights, 
        powers, and duties conferred by this section upon the governing 
        bodies of towns, including town boards, and the county board 
        must act as though it were the governing body and town board of 
        that town and may authorize and undertake mosquito abatement in 
        the town and cause taxes to be levied for mosquito abatement the 
        same as though the town were organized politically and the 
        county board were the governing body and town board.  The cost 
        of mosquito abatement in such a town must be paid solely by a 
        tax levy on the property within the town where mosquito 
        abatement is undertaken and no part of the expense of mosquito 
        abatement in that town may be a county expense or paid by the 
        county. 
           Subd. 17.  [COST OF STATE'S SERVICE; REFUNDS.] The actual 
        cost to the state of any service rendered or expense incurred by 
        the commissioner of agriculture or natural resources under this 
        section for the benefit of a mosquito abatement board must be 
        reimbursed by the appropriate governmental unit. 
           Sec. 14.  [18G.16] [SHADE TREE PEST AND DISEASE CONTROL.] 
           Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
        subdivision apply to this section. 
           (b) "Metropolitan area" means the counties of Anoka, 
        Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 
           (c) "Municipality" means a home rule charter or statutory 
        city or a town located in the metropolitan area that exercises 
        municipal powers under section 368.01 or any general or special 
        law; a special park district organized under chapter 398; a 
        special-purpose park and recreation board organized under the 
        city charter of a city of the first class located in the 
        metropolitan area; a county in the metropolitan area for the 
        purposes of county-owned property or any portion of a county 
        located outside the geographic boundaries of a city or a town 
        exercising municipal powers; and a municipality or county 
        located outside the metropolitan area with an approved disease 
        control program. 
           (d) "Shade tree disease" means Dutch elm disease, oak wilt, 
        or any disorder affecting the growth and life of shade trees. 
           (e) "Wood utilization or disposal system" means facilities, 
        equipment, or systems used for the removal and disposal of 
        diseased shade trees, including collection, transportation, 
        processing, or storage of wood and assisting in the recovery of 
        materials or energy from wood. 
           (f) "Approved disease control program" means a municipal 
        plan approved by the commissioner to control shade tree disease. 
           (g) "Disease control area" means an area approved by the 
        commissioner within which a municipality will conduct an 
        approved disease control program. 
           (h) "Sanitation" means the identification, inspection, 
        disruption of a common root system, girdling, trimming, removal, 
        and disposal of dead or diseased wood of shade trees, including 
        subsidies for trees removed pursuant to subdivision 4, on public 
        or private property within a disease control area. 
           (i) "Reforestation" means the replacement of shade trees 
        removed from public property and the planting of a tree as part 
        of a municipal disease control program.  For purposes of this 
        paragraph, "public property" includes private property within 
        five feet of the boulevard or street terrace in a city that 
        enacted an ordinance on or before January 1, 1977, that 
        prohibits or requires a permit for the planting of trees in the 
        public right-of-way. 
           Subd. 2.  [COMMISSIONER TO ADOPT RULES.] The commissioner 
        may adopt rules relating to shade tree pest and disease control 
        in any municipality.  The rules must prescribe control measures 
        to be used to prevent the spread of shade tree pests and 
        diseases and must include the following: 
           (1) a definition of shade tree; 
           (2) qualifications for tree inspectors; 
           (3) methods of identifying diseased or infested shade 
        trees; 
           (4) procedures for giving reasonable notice of inspection 
        of private real property; 
           (5) measures for the removal of any shade tree which may 
        contribute to the spread of shade tree pests or disease and for 
        reforestation of pest or disease control areas; 
           (6) approved methods of treatment of shade trees; 
           (7) criteria for priority designation areas in an approved 
        pest or disease control program; and 
           (8) any other matters determined necessary by the 
        commissioner to prevent the spread of shade tree pests or 
        disease and enforce this section. 
           Subd. 3.  [DIAGNOSTIC LABORATORY.] The commissioner shall 
        operate a diagnostic laboratory for culturing diseased or 
        infested trees for positive identification of diseased or 
        infested shade trees. 
           Subd. 4.  [COOPERATION BY UNIVERSITY.] The University of 
        Minnesota College of Natural Resources shall cooperate with the 
        department in control of shade tree disease, pests, and 
        disorders and management of shade tree populations.  The College 
        of Natural Resources shall cooperate with the department to 
        conduct tree inspector certification and recertification 
        workshops for certified tree inspectors.  The College of Natural 
        Resources shall also conduct research into means for identifying 
        diseased shade trees, develop and evaluate control measures, and 
        develop means for disposing of and using diseased shade trees. 
           Subd. 5.  [EXPERIMENTAL PROGRAMS.] The commissioner may 
        establish experimental programs for sanitation or treatment of 
        shade tree diseases and for research into tree varieties most 
        suitable for municipal reforestation.  The research must include 
        considerations of disease resistance, energy conservation, and 
        other factors considered appropriate.  The commissioner may make 
        grants to municipalities or enter into contracts with 
        municipalities, nurseries, colleges, universities, or state or 
        federal agencies in connection with experimental shade tree 
        programs including research to assist municipalities in 
        establishing priority designation areas for shade tree disease 
        control and energy conservation. 
           Subd. 6.  [REMOVAL OF DISEASED OR INFESTED TREES.] After 
        reasonable notice of inspection, an owner of real property 
        containing a shade tree that is diseased, infested, or may 
        contribute to the spread of pests or disease, must remove or 
        treat the tree within the period of time and in the manner 
        established by the commissioner.  Trees that are not removed in 
        compliance with the commissioner's rules must be declared a 
        public nuisance and removed or treated by approved methods by 
        the municipality, which may assess all or part of the expense, 
        limited to the lowest contract rates available that include wage 
        levels which meet Minnesota minimum wage standards, to the 
        property and the expense becomes a lien on the property.  A 
        municipality may assess not more than 50 percent of the expense 
        of treating with an approved method or removing diseased shade 
        trees located on street terraces or boulevards to the abutting 
        properties and the assessment becomes a lien on the property. 
           Subd. 7.  [RULES; APPLICABILITY TO MUNICIPALITIES.] The 
        rules of the commissioner apply in a municipality unless the 
        municipality adopts an ordinance determined by the commissioner 
        to be more stringent than the rules of the commissioner.  The 
        rules of the commissioner or the municipality apply to all state 
        agencies, special purpose districts, and metropolitan 
        commissions as defined in section 473.121, subdivision 5a, that 
        own or control land adjacent to or within a shade tree disease 
        control area. 
           Subd. 8.  [GRANTS TO MUNICIPALITIES.] (a) The commissioner 
        may, in the name of the state and within the limit of 
        appropriations provided, make a grant to a municipality with an 
        approved disease control program for the partial funding of 
        municipal sanitation and reforestation programs to replace trees 
        lost to disease or natural disaster.  The commissioner may make 
        a grant to a home rule charter or statutory city, a special 
        purpose park and recreation board organized under a charter of a 
        city of the first class, a nonprofit corporation serving a city 
        of the first class, or a county having an approved disease 
        control program for the acquisition or implementation of a wood 
        use or disposal system. 
           (b) The commissioner shall adopt rules for the 
        administration of grants under this subdivision.  The rules must 
        contain: 
           (1) procedures for grant applications; 
           (2) conditions and procedures for the administration of 
        grants; 
           (3) criteria of eligibility for grants including, but not 
        limited to, those specified in this subdivision; and 
           (4) other matters the commissioner may find necessary to 
        the proper administration of the grant program. 
           (c) Grants for wood utilization and disposal systems made 
        by the commissioner under this subdivision must not exceed 50 
        percent of the total cost of the system.  Grants for sanitation 
        and reforestation must be combined into one grant program.  
        Grants to a municipality for sanitation must not exceed 50 
        percent of sanitation costs approved by the commissioner 
        including any amount of sanitation costs paid by special 
        assessments, ad valorem taxes, federal grants, or other funds.  
        A municipality must not specially assess a property owner an 
        amount greater than the amount of the tree's sanitation cost 
        minus the amount of the tree's sanitation cost reimbursed by the 
        commissioner.  Grants to municipalities for reforestation must 
        not exceed 50 percent of the wholesale cost of the trees planted 
        under the reforestation program; provided that a reforestation 
        grant to a county may include 90 percent of the cost of the 
        first 50 trees planted on public property in a town not included 
        in the definition of municipality in subdivision 1 and with less 
        than 1,000 population when the town applies to the county.  
        Reforestation grants to towns and home rule charter or statutory 
        cities of less than 4,000 population with an approved disease 
        control program may include 90 percent of the cost of the first 
        50 trees planted on public property.  The governing body of a 
        municipality that receives a reforestation grant under this 
        section must appoint up to seven residents of the municipality 
        or designate an existing municipal board or committee to serve 
        as a reforestation advisory committee to advise the governing 
        body of the municipality in the administration of the 
        reforestation program.  For the purpose of this subdivision, 
        "cost" does not include the value of a gift or dedication of 
        trees required by a municipal ordinance but does include 
        documented "in-kind" services or voluntary work for 
        municipalities with a population of less than 1,000 according to 
        the most recent federal census. 
           (d) Based upon estimates submitted by the municipality to 
        the commissioner, which state the estimated costs of sanitation 
        and reforestation in the succeeding quarter under an approved 
        program, the commissioner shall direct quarterly advance 
        payments to be made by the state to the municipality commencing 
        April 1.  The commissioner shall direct adjustment of any 
        overestimate in a succeeding quarter.  A municipality may elect 
        to receive the proceeds of its sanitation and reforestation 
        grants on a periodic cost reimbursement basis.  
           (e) A home rule charter or statutory city, county outside 
        the metropolitan area, or any municipality, as defined in 
        subdivision 1, may submit an application for a grant authorized 
        by this subdivision concurrently with its request for approval 
        of a disease control program. 
           (f) The commissioner shall not make grants for sanitation 
        and reforestation or wood utilization and disposal systems in 
        excess of 67 percent of the amounts appropriated for those 
        purposes to the municipalities located within the metropolitan 
        area, as defined in subdivision 1. 
           Subd. 9.  [SUBSIDIES TO CERTAIN OWNERS.] A municipality may 
        provide subsidies to nonprofit organizations, to owners of 
        private residential property of five acres or less, to owners of 
        property used for a homestead of more than five acres but less 
        than 20 acres, and to nonprofit cemeteries for the approved 
        treatment or removal of diseased shade trees. 
           Notwithstanding any law to the contrary, an owner of 
        property on which shade trees are located may contract with a 
        municipality to provide protection against the cost of approved 
        treatment or removal of diseased shade trees or shade trees that 
        will contribute to the spread of shade tree diseases.  Under the 
        contract, the municipality must pay for the removal or approved 
        treatment under terms and conditions determined by its governing 
        body. 
           Subd. 10.  [TREE INSPECTOR.] (a) The governing body of each 
        municipality may appoint a qualified tree inspector.  In 
        accordance with section 471.59, two or more municipalities may 
        jointly appoint a tree inspector for the purpose of 
        administering the rules or ordinances in their communities.  If 
        a municipality has not appointed a tree inspector by January 1 
        in any year, the commissioner may assign a qualified employee of 
        the department of agriculture to perform the duties of the tree 
        inspector.  The expense of a tree inspector appointed by the 
        commissioner must be paid by the municipality.  If an employee 
        of the department of agriculture performs those duties, the 
        expense must be billed to the municipality and paid into the 
        state treasury and credited to the nursery and phytosanitary 
        account. 
           (b) Upon a determination by the commissioner that a 
        candidate for the position of tree inspector is qualified, the 
        commissioner shall issue a certificate of qualification to the 
        tree inspector.  The certificate is valid for one year.  A 
        person certified as a tree inspector by the commissioner is 
        authorized upon prior notification to enter and inspect any 
        public or private property that might harbor diseased or 
        infested shade trees. 
           (c) The commissioner may, upon notice and hearing, 
        decertify a tree inspector if it appears that the tree inspector 
        has failed to act competently or in the public interest in the 
        performance of duties.  Notice must be provided and a hearing 
        conducted according to the provisions of chapter 14 governing 
        contested case proceedings.  Nothing in this paragraph limits or 
        otherwise affects the authority of a municipality to dismiss or 
        suspend a tree inspector in its discretion. 
           Subd. 11.  [FINANCING.] (a) A municipality may collect the 
        amount assessed against the property under subdivision 1 as a 
        special assessment and may issue obligations as provided in 
        section 429.101, subdivision 1.  The municipality may, at its 
        option, make any assessment levied payable with interest in 
        installments not to exceed five years from the date of the 
        assessment. 
           (b) After a contract for the sanitation or approved 
        treatment of trees on private property has been approved or the 
        work begun, the municipality may issue obligations to defray the 
        expense of the work financed by special assessments imposed upon 
        private property.  Section 429.091 applies to those obligations 
        with the following modifications: 
           (1) the obligations must be payable not more than five 
        years from the date of issuance; and 
           (2) no election is required. 
           The certificates must not be included in the net debt of 
        the issuing municipality. 
           Subd. 12.  [DEPOSIT OF PROCEEDS IN SEPARATE FUND.] Proceeds 
        of taxes, assessments, and interest collected under this 
        section, bonds or certificates of indebtedness issued under 
        subdivision 10, and grants received under subdivision 7 must be 
        deposited in the municipal treasury in a separate fund and spent 
        only for the purposes authorized by this section. 
           Subd. 13.  [WOOD USE.] The departments of agriculture and 
        natural resources, after consultation with the Minnesota shade 
        tree advisory committee, may investigate, evaluate, and make 
        recommendations to the legislature concerning the potential uses 
        of wood from community trees removed due to disease or other 
        disorders.  These recommendations shall include maximum resource 
        recovery through recycling, use as an alternative energy source, 
        or use in construction or the manufacture of new products. 
           Subd. 14.  [MUNICIPAL OPTION TO PARTICIPATE IN 
        PROGRAM.] The term "municipality" shall include only those 
        municipalities which have informed the commissioner of their 
        intent to continue an approved disease control program.  Any 
        municipality desiring to participate in the grants-in-aid for 
        the partial funding of municipal sanitation and reforestation 
        programs must notify the commissioner in writing before the 
        beginning of the calendar year in which it wants to participate 
        and must have an approved disease control program during any 
        year in which it receives grants-in-aid.  Notwithstanding the 
        provisions of any law to the contrary, no municipality shall be 
        required to have an approved disease control program after 
        December 31, 1981. 
           Subd. 15.  [CERTAIN SPECIES NOT SUBJECT TO CHAPTER 
        18G.] Chapter 18G does not apply to exotic aquatic plants and 
        wild animal species regulated under chapter 84D. 

                                   ARTICLE 5 
                                  NURSERY LAW 
           Section 1.  [18H.02] [DEFINITIONS.] 
           Subdivision 1.  [SCOPE.] The definitions in this section 
        apply to this chapter. 
           Subd. 2.  [AGENT.] "Agent" means a person who, on behalf of 
        another person, receives on consignment, contracts for, or 
        solicits for sale on commission, a plant product from a producer 
        of the product or negotiates the consignment or purchase of a 
        plant product on behalf of another person. 
           Subd. 3.  [ANNUAL.] "Annual" means a plant growing in 
        Minnesota with a life cycle of less than one year. 
           Subd. 4.  [CERTIFICATE.] "Certificate" means a document 
        authorized or prepared by a federal or state regulatory official 
        that affirms, declares, or verifies that a plant, product, 
        shipment, or other officially regulated item meets 
        phytosanitary, nursery inspection, pest freedom, plant 
        registration or certification, or other legal requirements. 
           Subd. 5.  [CERTIFICATION.] "Certification" means a 
        regulatory official's act of affirming, declaring, or verifying 
        compliance with phytosanitary, nursery inspection, pest freedom, 
        plant registration or certification, or other legal requirements.
           Subd. 6.  [CERTIFIED NURSERY STOCK.] "Certified nursery 
        stock" means nursery stock which has been officially inspected 
        by the commissioner and found apparently free of quarantine and 
        regulated nonquarantine pests or significant dangerous or 
        potentially damaging plant pests. 
           Subd. 7.  [COMMISSIONER.] "Commissioner" means the 
        commissioner of agriculture or the commissioner's designated 
        employee, representative, or agent. 
           Subd. 8.  [CONSIGNEE.] "Consignee" means a person to whom a 
        plant, nursery stock, horticultural product, or plant product is 
        shipped for handling, planting, sale, resale, or any other 
        purpose. 
           Subd. 9.  [CONSIGNOR.] "Consignor" means a person who ships 
        or delivers to a consignee a plant, nursery stock, horticultural 
        product, or plant product for handling, planting, sale, resale, 
        or any other purpose. 
           Subd. 10.  [CONTAINER-GROWN.] "Container-grown" means a 
        plant that was produced from a liner or cutting in a container.  
           Subd. 11.  [DEPARTMENT.] "Department" means the Minnesota 
        department of agriculture. 
           Subd. 12.  [DISTRIBUTE.] "Distribute" means offer for sale, 
        sell, barter, ship, deliver for shipment, receive and deliver, 
        offer to deliver, receive on consignment, contract for, solicit 
        for sale on commission, or negotiate the consignment or purchase 
        in this state. 
           Subd. 13.  [INFECTED.] "Infected" means a plant that is: 
           (1) contaminated with pathogenic microorganisms; 
           (2) being parasitized; 
           (3) a host or carrier of an infectious, transmissible, or 
        contagious pest; or 
           (4) so exposed to a plant listed in clause (1), (2), or (3) 
        that one of those conditions can reasonably be expected to exist 
        and the plant may also pose a risk of contamination to other 
        plants or the environment. 
           Subd. 14.  [INFESTED.] "Infested" means a plant has been 
        overrun by plant pests, including weeds. 
           Subd. 15.  [LANDSCAPER.] "Landscaper" includes, but is not 
        limited to, a nursery stock dealer or person who procures 
        certified stock for immediate sale, distribution, or 
        transplantation and who does not grow or care for nursery stock. 
           Subd. 16.  [MARK.] "Mark" means an official indicator 
        affixed by the commissioner for purposes of identification or 
        separation to, on, around, or near plants or plant material 
        known or suspected to be infected with a plant pest.  This 
        includes, but is not limited to, paint, markers, tags, seals, 
        stickers, tape, ribbons, signs, or placards. 
           Subd. 17.  [NURSERY.] "Nursery" means a place where nursery 
        stock is grown, propagated, collected, or distributed, 
        including, but not limited to, private property or property 
        owned, leased, or managed by any agency of the United States, 
        Minnesota or its political subdivisions, or any other state or 
        its political subdivisions where nursery stock is fumigated, 
        treated, packed, or stored. 
           Subd. 18.  [NURSERY CERTIFICATE.] "Nursery certificate" 
        means a document issued by the commissioner recognizing that a 
        person is eligible to sell, offer for sale, or distribute 
        certified nursery stock at a particular location under a 
        specified business name.  
           Subd. 19.  [NURSERY HOBBYIST.] "Nursery hobbyist" means a 
        person who grows, offers for sale, or distributes less than 
        $2,000 worth of certified nursery stock annually. 
           Subd. 20.  [NURSERY STOCK.] "Nursery stock" means a plant 
        intended for planting or propagation, including, but not limited 
        to, trees, shrubs, vines, perennials, biennials, grafts, 
        cuttings, and buds that may be sold for propagation, whether 
        cultivated or wild, and all viable parts of these plants.  
        Nursery stock does not include: 
           (1) field and forage crops; 
           (2) the seeds of grasses, cereal grains, vegetable crops, 
        and flowers; 
           (3) vegetable plants, bulbs, or tubers; 
           (4) cut flowers, unless stems or other portions are 
        intended for propagation; 
           (5) annuals; or 
           (6) Christmas trees. 
           Subd. 21.  [NURSERY STOCK BROKER.] "Nursery stock broker" 
        means a nursery stock dealer engaged in the business of selling 
        or reselling nursery stock as a business transaction without 
        taking ownership or handling the nursery stock. 
           Subd. 22.  [NURSERY STOCK DEALER.] "Nursery stock dealer" 
        means a person involved in the acquisition and further 
        distribution of nursery stock; the utilization of nursery stock 
        for landscaping or purchase of nursery stock for other persons; 
        or the distribution of nursery stock with a mechanical digger, 
        commonly known as a tree spade, or by any other means.  A person 
        who purchases more than half of the nursery stock offered for 
        sale at a sales location during the current certificate year is 
        considered a nursery stock dealer rather than a nursery stock 
        grower for the purposes of determining a proper fee schedule.  
        Nursery stock brokers, landscapers, and tree spade operators are 
        considered nursery stock dealers for purposes of determining 
        proper certification. 
           Subd. 23.  [NURSERY STOCK GROWER.] "Nursery stock grower" 
        includes, but is not limited to, a person who raises, grows, or 
        propagates nursery stock, outdoors or indoors.  A person who 
        grows more than half of the nursery stock offered for sale at a 
        sales location during the current certificate year is considered 
        a nursery stock grower for the purpose of determining a proper 
        fee schedule. 
           Subd. 24.  [OWNER.] "Owner" includes, but is not limited 
        to, the person with the legal right of possession, 
        proprietorship of, or responsibility for the property or place 
        where any of the articles regulated in this chapter are found, 
        or the person who is in possession of, proprietorship of, or has 
        responsibility for the regulated articles. 
           Subd. 25.  [PERSON.] "Person" means an individual, firm, 
        corporation, partnership, association, trust, joint stock 
        company, unincorporated organization, the state, a state agency, 
        or a political subdivision.  
           Subd. 26.  [PLACE OF ORIGIN.] "Place of origin" means the 
        county and state where nursery stock was most recently certified 
        or grown for at least one full growing season. 
           Subd. 27.  [PLANT.] "Plant" means a plant, plant product, 
        plant part, or reproductive or propagative part of a plant, 
        plant product, or plant part, including all growing media, 
        packing material, or containers associated with the plants, 
        plant parts, or plant products. 
           Subd. 28.  [PLANT PEST.] "Plant pest" means a biotic agent 
        that causes or may cause harm to plants. 
           Subd. 29.  [PUBLIC NUISANCE.] "Public nuisance" means: 
           (1) a plant, appliance, conveyance, or article that is 
        infested with plant pests that may cause significant damage or 
        harm; or 
           (2) premises where a plant pest is found. 
           Subd. 30.  [QUARANTINE.] "Quarantine" means an enforced 
        isolation or restriction of free movement of plants, plant 
        material, animals, animal products, or any article or material 
        in order to treat, control, or eradicate a plant pest. 
           Subd. 31.  [REGULATED NONQUARANTINE PEST.] "Regulated 
        nonquarantine pest" means a plant pest that has not been 
        quarantined by state or federal agencies and whose presence in 
        plants or articles may pose an unacceptable risk to nursery 
        stock, other plants, the environment, or human activities. 
           Subd. 32.  [SALES LOCATION.] "Sales location" means a fixed 
        location from which nursery stock is displayed or distributed. 
           Subd. 33.  [TREE SPADE.] "Tree spade" means a mechanical 
        device or machinery capable of removing nursery stock, root 
        system, and soil from the planting in one operation. 
           Subd. 34.  [TREE SPADE OPERATOR.] "Tree spade operator" 
        means a nursery stock dealer who uses a tree spade to dig 
        nursery stock and sells, offers for sale, distributes, and 
        transports certified nursery stock. 
           Sec. 2.  [18H.03] [POWERS AND DUTIES OF COMMISSIONER.] 
           Subdivision 1.  [EMPLOYEES.] The commissioner may employ 
        entomologists, plant pathologists, and other employees necessary 
        to administer this chapter. 
           Subd. 2.  [ENTRY AND INSPECTION; FEES.] (a) The 
        commissioner may enter and inspect a public or private place 
        that might harbor plant pests and may require that the owner 
        destroy or treat plant pests, plants, or other material.  
           (b) If the owner fails to properly comply with a directive 
        of the commissioner within a given period of time, the 
        commissioner may have any necessary work done at the owner's 
        expense.  If the owner does not reimburse the commissioner for 
        the expense within a time specified by the commissioner, the 
        expense is a charge upon the county as provided in subdivision 4.
           (c) If a dangerous plant pest infestation or infection 
        threatens plants of an area in the state, the commissioner may 
        take any measures necessary to eliminate or alleviate the danger.
           (d) The commissioner may collect fees required by this 
        chapter.  
           (e) The commissioner may issue and enforce a written or 
        printed "stop-sale" order to the owner or custodian of any 
        nursery stock if fees required by the nursery are not paid.  The 
        commissioner may not be held liable for the deterioration of 
        nursery stock during the period for which it is held pursuant to 
        a stop-sale order. 
           Subd. 3.  [QUARANTINES.] The commissioner may impose a 
        quarantine to restrict or prohibit the transportation of nursery 
        stock, plants, or other materials capable of carrying plant 
        pests into or through any part of the state. 
           Subd. 4.  [COLLECTION OF CHARGES FOR WORK DONE FOR OWNER.] 
        If the commissioner incurs an expense in conjunction with 
        carrying out subdivision 2 and is not reimbursed by the owner of 
        the land, the expense is a legal charge against the land.  After 
        the expense is incurred, the commissioner shall file verified 
        and itemized statements of the cost of all services rendered 
        with the county auditor of the county in which the land is 
        located.  The county auditor shall place a lien in favor of the 
        commissioner against the land involved, certified by the county 
        auditor, and collected according to section 429.101. 
           Subd. 5.  [DELEGATION AUTHORITY.] The commissioner may, by 
        written agreements, delegate specific inspection, enforcement, 
        and other regulatory duties of this chapter to officials of 
        other agencies.  This delegation may only be made to a state 
        agency, a political subdivision, or a political subdivision's 
        agency that has signed a joint powers agreement with the 
        commissioner as provided in section 471.59. 
           Subd. 6.  [DISSEMINATION OF INFORMATION.] The commissioner 
        may disseminate information among growers relative to treatment 
        of nursery stock in both prevention and elimination of attack by 
        plant pests and diseases. 
           Subd. 7.  [OTHER DUTIES OF SERVICE.] The commissioner may 
        carry out other duties or responsibilities that are of service 
        to the industry or that may be necessary for the protection of 
        the industry. 
           Sec. 3.  [18H.04] [ADOPTION OF RULES.] 
           The commissioner may adopt rules to carry out the purposes 
        of this chapter.  The rules may include, but are not limited to, 
        rules in regard to labeling and the maintenance of viability and 
        vigor of nursery stock.  Rules of the commissioner that are in 
        effect on July 1, 2003, relating to plant protection, nursery 
        inspection, or the Plant Pest Act remain in effect until they 
        are superseded by new rules. 
           Sec. 4.  [18H.05] [NURSERY CERTIFICATE REQUIREMENTS.] 
           (a) No person may offer for sale or distribute nursery 
        stock as a nursery stock grower or dealer without first 
        obtaining the appropriate nursery stock certificate from the 
        commissioner.  Certificates are issued solely for these purposes 
        and may not be used for other purposes. 
           (b) A certificate issued by the commissioner expires on 
        December 31 of the year it is issued. 
           (c) A person required to be certified by this section must 
        apply for a certificate or for renewal on a form furnished by 
        the commissioner which must contain: 
           (1) the name and address of the applicant, the number of 
        locations to be operated by the applicant and their addresses, 
        and the assumed business name of the applicant; 
           (2) if other than an individual, a statement whether a 
        person is a partnership, corporation, or other organization; and 
           (3) the type of business to be operated and, if the 
        applicant is an agent, the principals the applicant represents. 
           (d) No person may:  
           (1) falsely claim to be a certified dealer, grower, broker, 
        or agent; or 
           (2) make willful false statements when applying for a 
        certificate. 
           (e) Each application for a certificate must be accompanied 
        by the appropriate certificate fee under section 18H.07. 
           (f) Certificates issued by the commissioner must be 
        prominently displayed to the public in the place of business 
        where nursery stock is sold or distributed. 
           (g) The commissioner may refuse to issue a certificate for 
        cause. 
           (h) Each grower or dealer is entitled to one sales location 
        under the certificate of the grower or dealer.  Each additional 
        sales location maintained by the person requires the payment of 
        the full certificate fee for each additional sales outlet. 
           (i) A grower who is also a dealer is certified only as a 
        grower for that specific site. 
           (j) A certificate is personal to the applicant and may not 
        be transferred.  A new certificate is necessary if the business 
        entity is changed or if the membership of a partnership is 
        changed, whether or not the business name is changed. 
           (k) The certificate issued to a dealer or grower applies to 
        the particular premises named in the certificate.  However, if 
        prior approval is obtained from the commissioner, the place of 
        business may be moved to the other premises or location without 
        an additional certificate fee. 
           (l) A collector of nursery stock from the wild is required 
        to obtain a dealer's certificate from the commissioner and is 
        subject to all the requirements that apply to the inspection of 
        nursery stock.  All collected nursery stock must be labeled as 
        "collected from the wild." 
           Sec. 5.  [18H.06] [EXEMPT NURSERY SALES.] 
           Subdivision 1.  [NOT-FOR-PROFIT SALES.] An organization or 
        individual may offer for sale certified nursery stock and be 
        exempt from the requirement to obtain a nursery stock dealer 
        certificate if sales are conducted by a nonprofit charitable, 
        educational, or religious organization that: 
           (1) conducts sales or distributions of certified nursery 
        stock on 14 or fewer days in a calendar year; and 
           (2) uses the proceeds from its certified nursery stock 
        sales or distribution for charitable, educational, or religious 
        purposes. 
           Subd. 2.  [NURSERY HOBBYIST SALES.] (a) An organization or 
        individual may offer nursery stock for sale and be exempt from 
        the requirement to obtain a nursery stock dealer certificate if: 
           (1) the gross sales of all nursery stock in a calendar year 
        do not exceed $2,000; 
           (2) all nursery stock sold or distributed by the hobbyist 
        is intended for planting in Minnesota; and 
           (3) all nursery stock purchased or procured for resale or 
        distribution was grown in Minnesota and has been certified by 
        the commissioner. 
           (b) The commissioner may prescribe the conditions of the 
        exempt nursery sales under this subdivision and may conduct 
        routine inspections of the nursery stock offered for sale. 
           Sec. 6.  [18H.07] [FEE SCHEDULE.] 
           Subdivision 1.  [ESTABLISHMENT OF FEES.] The commissioner 
        shall establish fees sufficient to allow for the administration 
        and enforcement of this chapter and rules adopted under this 
        chapter, including the portion of general support costs and 
        statewide indirect costs of the agency attributable to that 
        function, with a reserve sufficient for up to six months.  The 
        commissioner shall review the fee schedule annually in 
        consultation with the Minnesota nursery and landscape advisory 
        committee.  For the certificate year beginning January 1, 2004, 
        the fees are as described in this section. 
           Subd. 2.  [NURSERY STOCK GROWER CERTIFICATE.] (a) A nursery 
        stock grower must pay an annual fee based on the area of all 
        acreage on which nursery stock is grown for certification as 
        follows: 
           (1) less than one-half acre, $150; 
           (2) from one-half acre to two acres, $200; 
           (3) over two acres up to five acres, $300; 
           (4) over five acres up to ten acres, $350; 
           (5) over ten acres up to 20 acres, $500; 
           (6) over 20 acres up to 40 acres, $650; 
           (7) over 40 acres up to 50 acres, $800; 
           (8) over 50 acres up to 200 acres, $1,100; 
           (9) over 200 acres up to 500 acres, $1,500; and 
           (10) over 500 acres, $1,500 plus $2 for each additional 
        acre. 
           (b) In addition to the fees in paragraph (a), a penalty of 
        ten percent of the fee due must be charged for each month that 
        the fee is delinquent for any application for renewal not 
        received by January 1 of the year following expiration of a 
        certificate. 
           Subd. 3.  [NURSERY STOCK DEALER CERTIFICATE.] (a) A nursery 
        stock dealer must pay an annual fee based on the dealer's gross 
        sales of nursery stock per location during the preceding 
        certificate year.  A certificate applicant operating for the 
        first time must pay the minimum fee.  The fees per sales 
        location are: 
           (1) gross sales up to $20,000, $150; 
           (2) gross sales over $20,000 up to $100,000, $175; 
           (3) gross sales over $100,000 up to $250,000, $300; 
           (4) gross sales over $250,000 up to $500,000, $425; 
           (5) gross sales over $500,000 up to $1,000,000, $550; 
           (6) gross sales over $1,000,000 up to $2,000,000, $675; and 
           (7) gross sales over $2,000,000, $800. 
           (b) In addition to the fees in paragraph (a), a penalty of 
        ten percent of the fee due must be charged for each month that 
        the fee is delinquent for any application for renewal not 
        received by January 1 of the year following expiration of a 
        certificate. 
           Subd. 4.  [REINSPECTION; ADDITIONAL OR OPTIONAL INSPECTION 
        FEES.] If a reinspection is required or an additional inspection 
        is needed or requested a fee must be assessed based on mileage 
        and inspection time as follows: 
           (1) mileage must be charged at the current United States 
        Internal Revenue Service reimbursement rate; and 
           (2) inspection time must be charged at the rate of $50 per 
        hour, including the driving time to and from the location in 
        addition to the time spent conducting the inspection. 
           Sec. 7.  [18H.08] [LOCAL SALES AND MISCELLANEOUS.] 
           Subdivision 1.  [SERVICES AND FEES.] The commissioner may 
        make small lot inspections or perform other necessary services 
        for which another charge is not specified.  For these services 
        the commissioner shall set a fee plus expenses that will recover 
        the cost of performing this service.  The commissioner may set 
        an additional acreage fee for inspection of seed production 
        fields for exporters in order to meet domestic and foreign plant 
        quarantine requirements. 
           Subd. 2.  [VIRUS DISEASE-FREE CERTIFICATION.] The 
        commissioner may provide special services such as virus 
        disease-free certification and other similar programs.  
        Participation by nursery stock growers is voluntary.  Plants 
        offered for sale as certified virus-free must be grown according 
        to certain procedures in a manner defined by the commissioner 
        for the purpose of eliminating viruses and other injurious 
        disease or insect pests.  The commissioner shall collect 
        reasonable fees from participating nursery stock growers for 
        services and materials that are necessary to conduct this type 
        of work.  
           Sec. 8.  [18H.09] [NURSERY INSPECTIONS REQUIRED.] 
           (a) All nursery stock growing sites in Minnesota must have 
        had an inspection by the commissioner during the previous 12 
        months and found apparently free from quarantine and regulated 
        nonquarantine pests as well as significantly dangerous or 
        potentially damaging plant pests.  All nursery stock originating 
        from out of state and offered for sale in Minnesota must have 
        been inspected by the appropriate state or federal agency during 
        the previous 12 months and found free from quarantine and 
        regulated nonquarantine pests as well as significantly dangerous 
        or potentially damaging plant pests.  A nursery stock 
        certificate is valid from January 1 to December 31. 
           (b) Nursery stock must be accessible to the commissioner 
        for inspection during regular business hours.  Weeds or other 
        growth that hinder a proper inspection are grounds to suspend or 
        withhold a certificate or require a reinspection. 
           (c) Inspection reports issued to growers must contain a 
        list of the plant pests found at the time of inspection.  
        Withdrawal-from-distribution orders are considered part of the 
        inspection reports.  A withdrawal-from-distribution order must 
        contain a list of plants withdrawn from distribution and the 
        location of the plants. 
           (d) The commissioner may post signs to delineate sections 
        withdrawn from distribution.  These signs must remain in place 
        until the commissioner removes them or grants written permission 
        to the grower to remove the signs. 
           (e) Inspection reports issued to dealers must outline the 
        violations involved and corrective actions to be taken including 
        withdrawal-from-distribution orders which would specify nursery 
        stock that could not be distributed from a certain area. 
           (f) Optional inspections of plants may be conducted by the 
        commissioner upon request by any persons desiring an 
        inspection.  A fee as provided in section 18H.07 must be charged 
        for such an inspection. 
           Sec. 9.  [18H.10] [STORAGE OF NURSERY STOCK.] 
           All nursery stock must be kept and displayed under 
        conditions of temperature, light, and moisture sufficient to 
        maintain the viability and vigor of the nursery stock. 
           Sec. 10.  [18H.11] [NURSERY STOCK STANDARDS.] 
           The American Standard for Nursery Stock, ANSI Z60.1, 
        published by the Nursery and Landscape Association, must be used 
        by the commissioner in determining standards and grades of 
        nursery stock when not in conflict with this chapter. 
           Sec. 11.  [18H.12] [DAMAGED, DISEASED, INFESTED, OR 
        MISREPRESENTED STOCK.] 
           (a) No person may knowingly offer to distribute, advertise, 
        or display nursery stock that is infested or infected with 
        quarantine or regulated nonquarantine pests or significant 
        dangerous or potentially damaging plant pests, including noxious 
        weeds or nursery stock that is in a dying condition, desiccated, 
        frozen or damaged by freezing, or materially damaged in any way. 
           (b) No person may knowingly offer to distribute, advertise, 
        or display nursery stock that may result in the capacity and 
        tendency or effect of deceiving any purchaser or prospective 
        purchaser as to the quantity, size, grade, kind, species name, 
        age, variety, maturity, condition, vigor, hardiness, number of 
        times transplanted, growth ability, growth characteristics, rate 
        of growth, time required before flowering or fruiting, price, 
        origin, place where grown, or any other material respect. 
           (c) Upon discovery or notification of damaged, diseased, 
        infested, or misrepresented stock, the commissioner may place a 
        stop-sale and distribution order on the material.  The order 
        makes it an illegal action to distribute, give away, destroy, 
        alter, or tamper with the plants. 
           (d) The commissioner may conspicuously mark all plants, 
        materials, and articles known or suspected to be infected or 
        infested with quarantine or regulated nonquarantine pests or 
        significant dangerous or potentially damaging plant pests.  The 
        commissioner shall notify the persons, owners, or the tenants in 
        possession of the premises or area in question of the existence 
        of the plant pests. 
           (e) If the commissioner determines that this chapter has 
        been violated, the commissioner may order that the nuisance, 
        infestation, infection, or plant pest be abated by whatever 
        means necessary, including, but not limited to, destruction, 
        confiscation, treatment, return shipment, or quarantine. 
           (f) The plant owner is liable for all costs associated with 
        a stop order or a quarantine, treatment, or destruction of 
        plants.  The commissioner is not liable for any actual or 
        incidental costs incurred by a person due to authorized actions 
        of the commissioner.  The commissioner must be reimbursed by the 
        owner of plants for actual expenses incurred by the commissioner 
        in carrying out a stop order. 
           Sec. 12.  [18H.13] [SHIPMENT OF NURSERY STOCK INTO 
        MINNESOTA.] 
           Subdivision 1.  [LABELING.] Plants, plant materials, or 
        nursery stock distributed into Minnesota must be conspicuously 
        labeled on the exterior with the name of the consignor, the 
        state of origin, and the name of the consignee and must be 
        accompanied by certification documents to satisfy all applicable 
        state and federal quarantines.  Proof of valid nursery 
        certification must also accompany the shipment.  It is the 
        shared responsibility of both the consignee and consignor to 
        examine all shipments for the presence of current and applicable 
        nursery stock certifications for all plant material from all 
        sources of stock in each shipment. 
           Subd. 2.  [RECIPROCITY.] A person residing outside the 
        state may distribute nursery stock in Minnesota if: 
           (1) the person is duly certified under the nursery laws of 
        the state where the nursery stock originates and the laws of 
        that state are essentially equivalent to the laws of Minnesota 
        as determined by the commissioner; and 
           (2) the person complies with this chapter and the rules 
        governing nursery stock distributed in Minnesota. 
           Subd. 3.  [RECIPROCAL AGREEMENTS.] The commissioner may 
        cooperate with and enter into reciprocal agreements with other 
        states regarding licensing and movement of nursery stock.  
        Reciprocal agreements with other states do not prevent the 
        commissioner from prohibiting the distribution in Minnesota of 
        any nursery stock that fails to meet minimum criteria for 
        nursery stock of Minnesota certified growers, dealers, or both.  
        An official directory of certified nurseries and related nursery 
        industry businesses from other states is acceptable in lieu of 
        individual nursery certificates. 
           Subd. 4.  [FOREIGN NURSERY STOCK.] A person receiving a 
        shipment of nursery stock from a foreign country that has not 
        been inspected and released by the United States Department of 
        Agriculture at the port of entry must notify the commissioner of 
        the arrival of the shipment, its contents, and the name of the 
        consignor.  The person must hold the shipment unopened until 
        inspected or released by the commissioner. 
           Subd. 5.  [TRANSPORTATION COMPANIES.] A person who acts as 
        the representative of a transportation company, private carrier, 
        commercial shipper, common carrier, express parcel carrier, or 
        other transportation entity, and receives, ships, or otherwise 
        distributes a carload, box, container, or any package of plants, 
        plant materials, or nursery stock, that does not have all 
        required certificates attached as required or fails to 
        immediately notify the commissioner is in violation of this 
        chapter. 
           Sec. 13.  [18H.14] [LABELING AND ADVERTISING OF NURSERY 
        STOCK.] 
           (a) Plants, plant materials, or nursery stock must not be 
        labeled or advertised with false or misleading information 
        including, but not limited to, scientific name, variety, place 
        of origin, hardiness zone as defined by the United States 
        Commissioner of Agriculture, and growth habit. 
           (b) A person may not offer for distribution plants, plant 
        materials, or nursery stock, represented by some specific or 
        special form of notation, including, but not limited to, "free 
        from" or "grown free of," unless the plants are produced under a 
        specific program approved by the commissioner to address the 
        specific plant properties addressed in the special notation 
        claim. 
           Sec. 14.  [18H.15] [VIOLATIONS.] 
           (a) A person who offers to distribute nursery stock that is 
        uncertified, uninspected, or falsely labeled or advertised 
        possesses an illegal regulated commodity that is considered 
        infested or infected with harmful plant pests and subject to 
        regulatory action and control.  If the commissioner determines 
        that the provisions of this section have been violated, the 
        commissioner may order the destruction of all of the plants 
        unless the person: 
           (1) provides proper phytosanitary preclearance, 
        phytosanitary certification, or nursery stock certification; 
           (2) agrees to have the plants, plant materials, or nursery 
        stock returned to the consignor; and 
           (3) provides proper documentation, certification, or 
        compliance to support advertising claims. 
           (b) The plant owner is liable for all costs associated with 
        a withdrawal-from-distribution order or the quarantine, 
        treatment, or destruction of plants.  The commissioner is not 
        liable for actual or incidental costs incurred by a person due 
        to the commissioner's actions.  The commissioner must be 
        reimbursed by the owner of the plants for the actual expenses 
        incurred in carrying out a withdrawal-from-distribution order or 
        the quarantine, treatment, or destruction of any plants. 
           (c) It is unlawful for a person to: 
           (1) misrepresent, falsify, or knowingly distribute, sell, 
        advertise, or display damaged, mislabeled, misrepresented, 
        infested, or infected nursery stock; 
           (2) fail to obtain a nursery certificate as required by the 
        commissioner; 
           (3) fail to renew a nursery certificate, but continue 
        business operations; 
           (4) fail to display a nursery certificate; 
           (5) misrepresent or falsify a nursery certificate; 
           (6) refuse to submit to a nursery inspection; 
           (7) fail to provide the cooperation necessary to conduct a 
        successful nursery inspection; 
           (8) offer for sale uncertified plants, plant materials, or 
        nursery stock; 
           (9) possess an illegal regulated commodity; 
           (10) violate or disobey a commissioner's order; 
           (11) violate a quarantine issued by the commissioner; 
           (12) fail to obtain phytosanitary certification for plant 
        material or nursery stock brought into Minnesota; 
           (13) deface, mutilate, or destroy a nursery stock 
        certificate, phytosanitary certificate, or phytosanitary 
        preclearance certificate, or other commissioner mark, permit, or 
        certificate; 
           (14) fail to notify the commissioner of an uncertified 
        shipment of plants, plant materials, or nursery stock; or 
           (15) transport uncertified plants, plant materials, or 
        nursery stock in Minnesota. 
           Sec. 15.  [18H.16] [POLITICAL SUBDIVISION ORDINANCES.] 
           A political subdivision must not enact an ordinance or 
        resolution that conflicts with this chapter. 
           Sec. 16.  [18H.17] [NURSERY AND PHYTOSANITARY ACCOUNT.] 
           A nursery and phytosanitary account is established in the 
        state treasury.  The fees and penalties collected under this 
        chapter and interest attributable to money in the account must 
        be deposited in the state treasury and credited to the nursery 
        and phytosanitary account in the agricultural fund.  Money in 
        the account, including interest earned, is annually appropriated 
        to the commissioner for the administration and enforcement for 
        this chapter. 
           Sec. 17.  [18H.18] [CONSERVATION OF CERTAIN WILDFLOWERS.] 
           Subdivision 1.  [RESTRICTIONS ON COLLECTING.] No person 
        shall distribute the state flower (Cypripedium reginae), or any 
        species of lady slipper (Cypripedieae), any member of the orchid 
        family, any gentian (Gentiana), arbutus (epigaea repens), lilies 
        (Lilium), coneflowers (Echinacea), bloodroot (Sanguinaria 
        Canadensis), mayapple (Podophyllum peltatutum), any species of 
        trillium, or lotus (Nelumbo lutea), which have been collected in 
        any manner from any public or private property without the 
        written permission of the property owner and written 
        authorization from the commissioner. 
           Subd. 2.  [COLLECTION WITHOUT SALE.] Wildflower collection 
        from public or private land for the purpose of transplanting the 
        plants to a person's private property and not offering for 
        immediate sale, requires the written permission from the 
        property owner of the land on which the wildflowers are growing. 
           Subd. 3.  [COLLECTION WITH INTENT TO SELL OR DISTRIBUTE 
        WILDFLOWERS.] (a) The wildflowers listed in this section may be 
        offered for immediate sale only if the plants are to be used for 
        scientific or herbarium purposes. 
           (b) The wildflowers listed in this section must not be 
        collected and sold commercially unless the plants are: 
           (1) growing naturally, collected, and cultivated on the 
        collector's property; or 
           (2) collected through the process described in subdivision 
        2 and transplanted and cultivated on the collector's property. 
           (c) The collector must obtain a written permit from the 
        commissioner before the plants may be offered for commercial 
        sale. 

                                   ARTICLE 6 
                           INSPECTION AND ENFORCEMENT 
           Section 1.  [18J.01] [DEFINITIONS.] 
           (a) The definitions in sections 18G.02 and 18H.02 apply to 
        this chapter. 
           (b) For purposes of this chapter, "associated rules" means 
        rules adopted under this chapter, chapter 18G or 18H, or 
        sections 21.80 to 21.92. 
           Sec. 2.  [18J.02] [DUTIES OF COMMISSIONER.] 
           The commissioner shall administer and enforce this chapter, 
        chapters 18G and 18H, sections 21.80 to 21.92, and associated 
        rules. 
           Sec. 3.  [18J.03] [CIVIL LIABILITY.] 
           A person regulated by this chapter, chapter 18G or 18H, or 
        sections 21.80 to 21.92, is civilly liable for any violation of 
        one of those statutes or associated rules by the person's 
        employee or agent. 
           Sec. 4.  [18J.04] [INSPECTION, SAMPLING, ANALYSIS.] 
           Subdivision 1.  [ACCESS AND ENTRY.] The commissioner, upon 
        presentation of official department credentials, must be granted 
        immediate access at reasonable times to sites where a person 
        manufactures, distributes, uses, handles, disposes of, stores, 
        or transports seeds, plants, or other living or nonliving 
        products or other objects regulated under chapter 18G or 18H, 
        sections 21.80 to 21.92, or associated rules. 
           Subd. 2.  [PURPOSE OF ENTRY.] (a) The commissioner may 
        enter sites for:  
           (1) inspection of inventory and equipment for the 
        manufacture, storage, handling, distribution, disposal, or any 
        other process regulated under chapter 18G or 18H, sections 21.80 
        to 21.92, or associated rules; 
           (2) sampling of sites, seeds, plants, products, or other 
        living or nonliving objects that are manufactured, stored, 
        distributed, handled, or disposed of at those sites and 
        regulated under chapter 18G or 18H, sections 21.80 to 21.92, or 
        associated rules; 
           (3) inspection of records related to the manufacture, 
        distribution, storage, handling, or disposal of seeds, plants, 
        products, or other living or nonliving objects regulated under 
        chapter 18G or 18H, sections 21.80 to 21.92, or associated 
        rules; 
           (4) investigating compliance with chapter 18G or 18H, 
        sections 21.80 to 21.92, or associated rules; or 
           (5) other purposes necessary to implement chapter 18G or 
        18H, sections 21.80 to 21.92, or associated rules. 
           (b) The commissioner may enter any public or private 
        premises during or after regular business hours without notice 
        of inspection when a suspected violation of chapter 18G or 18H, 
        sections 21.80 to 21.92, or associated rules may threaten public 
        health or the environment. 
           Subd. 3.  [NOTICE OF INSPECTION SAMPLES AND ANALYSES.] (a) 
        The commissioner shall provide the owner, operator, or agent in 
        charge with a receipt describing any samples obtained.  If 
        requested, the commissioner shall split any samples obtained and 
        provide them to the owner, operator, or agent in charge.  If an 
        analysis is made of the samples, a copy of the results of the 
        analysis must be furnished to the owner, operator, or agent in 
        charge within 30 days after an analysis has been performed.  If 
        an analysis is not performed, the commissioner must notify the 
        owner, operator, or agent in charge within 30 days of the 
        decision not to perform the analysis. 
           (b) The sampling and analysis must be done according to 
        methods provided for under applicable provisions of chapter 18G 
        or 18H, sections 21.80 to 21.92, or associated rules.  In cases 
        not covered by those sections and methods or in cases where 
        methods are available in which improved applicability has been 
        demonstrated the commissioner may adopt appropriate methods from 
        other sources. 
           Subd. 4.  [INSPECTION REQUESTS BY OTHERS.] (a) A person who 
        believes that a violation of chapter 18G or 18H, sections 21.80 
        to 21.92, or associated rules has occurred may request an 
        inspection by giving notice to the commissioner of the 
        violation.  The notice must be in writing, state with reasonable 
        particularity the grounds for the notice, and be signed by the 
        person making the request. 
           (b) If after receiving a notice of violation the 
        commissioner reasonably believes that a violation has occurred, 
        the commissioner shall make a special inspection in accordance 
        with the provisions of this section as soon as practicable, to 
        determine if a violation has occurred. 
           (c) An inspection conducted pursuant to a notice under this 
        subdivision may cover an entire site and is not limited to the 
        portion of the site specified in the notice.  If the 
        commissioner determines that reasonable grounds to believe that 
        a violation occurred do not exist, the commissioner must notify 
        the person making the request in writing of the determination. 
           Subd. 5.  [ORDER TO ENTER AFTER REFUSAL.] After a refusal, 
        or an anticipated refusal based on a prior refusal, to allow 
        entrance on a prior occasion by an owner, operator, or agent in 
        charge to allow entry as specified in this section, the 
        commissioner may apply for an order in the district court in the 
        county where a site is located, that compels a person with 
        authority to allow the commissioner to enter and inspect the 
        site. 
           Subd. 6.  [VIOLATOR LIABLE FOR INSPECTION COSTS.] (a) The 
        cost of reinspection and reinvestigation may be assessed by the 
        commissioner if the person subject to an order of the 
        commissioner does not comply with the order in a reasonable time 
        as provided in the order. 
           (b) The commissioner may enter an order for recovery of the 
        inspection and investigation costs. 
           Subd. 7.  [INVESTIGATION AUTHORITY.] (a) In making 
        inspections under this chapter, the commissioner may administer 
        oaths, certify official acts, issue subpoenas to take and cause 
        to be taken depositions of witnesses, and compel the attendance 
        of witnesses and production of papers, books, documents, 
        records, and testimony. 
           (b) If a person fails to comply with a subpoena, or a 
        witness refuses to produce evidence or to testify to a matter 
        about which the person may be lawfully questioned, the district 
        court shall, on application of the commissioner, compel 
        obedience proceedings for contempt, as in the case of 
        disobedience of the requirements of a subpoena issued by the 
        court or a refusal to testify in court. 
           Sec. 5.  [18J.05] [ENFORCEMENT.] 
           Subdivision 1.  [ENFORCEMENT REQUIRED.] (a) A violation of 
        chapter 18G or 18H, sections 21.80 to 21.92, or an associated 
        rule is a violation of this chapter. 
           (b) Upon the request of the commissioner, county attorneys, 
        sheriffs, and other officers having authority in the enforcement 
        of the general criminal laws must take action to the extent of 
        their authority necessary or proper for the enforcement of 
        chapter 18G or 18H, sections 21.80 to 21.92, or associated rules 
        or valid orders, standards, stipulations, and agreements of the 
        commissioner. 
           Subd. 2.  [COMMISSIONER'S DISCRETION.] If minor violations 
        of chapter 18G or 18H, sections 21.80 to 21.92, or associated 
        rules occur or the commissioner believes the public interest 
        will be best served by a suitable notice of warning in writing, 
        this section does not require the commissioner to: 
           (1) report the violation for prosecution; 
           (2) institute seizure proceedings; or 
           (3) issue a withdrawal from distribution, stop-sale, or 
        other order. 
           Subd. 3.  [CIVIL ACTIONS.] Civil judicial enforcement 
        actions may be brought by the attorney general in the name of 
        the state on behalf of the commissioner.  A county attorney may 
        bring a civil judicial enforcement action upon the request of 
        the commissioner and agreement by the attorney general. 
           Subd. 4.  [INJUNCTION.] The commissioner may apply to a 
        court with jurisdiction for a temporary or permanent injunction 
        to prevent, restrain, or enjoin violations of this chapter. 
           Subd. 5.  [CRIMINAL ACTIONS.] For a criminal action, the 
        county attorney from the county where a criminal violation 
        occurred is responsible for prosecuting a violation of this 
        chapter.  If the county attorney refuses to prosecute, the 
        attorney general on request of the commissioner may prosecute. 
           Subd. 6.  [AGENT FOR SERVICE OF PROCESS.] All persons 
        licensed, permitted, registered, or certified under chapter 18G 
        or 18H, sections 21.80 to 21.92, or associated rules must 
        appoint the commissioner as the agent upon whom all legal 
        process may be served and service upon the commissioner is 
        deemed to be service on the licensee, permittee, registrant, or 
        certified person. 
           Sec. 6.  [18J.06] [FALSE STATEMENT OR RECORD.] 
           A person must not knowingly make or offer a false 
        statement, record, or other information as part of: 
           (1) an application for registration, license, 
        certification, or permit under chapter 18G or 18H, sections 
        21.80 to 21.92, or associated rules; 
           (2) records or reports required under chapter 18G or 18H, 
        sections 21.80 to 21.92, or associated rules; or 
           (3) an investigation of a violation of chapter 18G or 18H, 
        sections 21.80 to 21.92, or associated rules. 
           Sec. 7.  [18J.07] [ADMINISTRATIVE ACTION.] 
           Subdivision 1.  [ADMINISTRATIVE REMEDIES.] The commissioner 
        may seek to remedy violations by a written warning, 
        administrative meeting, cease and desist, stop-use, stop-sale, 
        removal, correction order, or an order, seizure, stipulation, or 
        agreement, if the commissioner determines that the remedy is in 
        the public interest. 
           Subd. 2.  [REVOCATION AND SUSPENSION.] The commissioner 
        may, after written notice and hearing, revoke, suspend, or 
        refuse to grant or renew a registration, permit, license, or 
        certification if a person violates this chapter or has a history 
        within the last three years of violation of this chapter. 
           Subd. 3.  [CANCELLATION OF REGISTRATION, PERMIT, LICENSE, 
        CERTIFICATION.] The commissioner may cancel or revoke a 
        registration, permit, license, or certification provided for 
        under chapter 18G or 18H, sections 21.80 to 21.92, or associated 
        rules or refuse to register, permit, license, or certify under 
        provisions of chapter 18G or 18H, sections 21.80 to 21.92, or 
        associated rules if the registrant, permittee, licensee, or 
        certified person has used fraudulent or deceptive practices in 
        the evasion or attempted evasion of a provision of chapter 18G 
        or 18H, sections 21.80 to 21.92, or associated rules. 
           Subd. 4.  [SERVICE OF ORDER OR NOTICE.] (a) If a person is 
        not available for service of an order, the commissioner may 
        attach the order to the facility, site, seed or seed container, 
        plant or other living or nonliving object regulated under 
        chapter 18G or 18H, sections 21.80 to 21.92, or associated rules 
        and notify the owner, custodian, other responsible party, or 
        registrant. 
           (b) The seed, seed container, plant, or other living or 
        nonliving object regulated under chapter 18G or 18H, sections 
        21.80 to 21.92, or associated rules may not be sold, used, 
        tampered with, or removed until released under conditions 
        specified by the commissioner, by an administrative law judge, 
        or by a court. 
           Subd. 5.  [UNSATISFIED JUDGMENTS.] (a) An applicant for a 
        license, permit, registration, or certification under provisions 
        of this chapter, chapter 18G or 18H, sections 21.80 to 21.92, or 
        associated rules may not allow a final judgment against the 
        applicant for damages arising from a violation of those statutes 
        or rules to remain unsatisfied for a period of more than 30 days.
           (b) Failure to satisfy, within 30 days, a final judgment 
        resulting from a violation of this chapter results in automatic 
        suspension of the license, permit, registration, or 
        certification. 
           Sec. 8.  [18J.08] [APPEALS OF COMMISSIONER'S ORDERS.] 
           Subdivision 1.  [NOTICE OF APPEAL.] (a) After service of an 
        order, a person has 45 days from receipt of the order to notify 
        the commissioner in writing that the person intends to contest 
        the order. 
           (b) If the person fails to notify the commissioner that the 
        person intends to contest the order, the order is a final order 
        of the commissioner and not subject to further judicial or 
        administrative review. 
           Subd. 2.  [ADMINISTRATIVE REVIEW.] If a person notifies the 
        commissioner that the person intends to contest an order issued 
        under this section, the state office of administrative hearings 
        must conduct a hearing in accordance with the applicable 
        provisions of chapter 14 for hearings in contested cases. 
           Subd. 3.  [JUDICIAL REVIEW.] Judicial review of a final 
        decision in a contested case is available as provided in chapter 
        14. 
           Sec. 9.  [18J.09] [CREDITING OF PENALTIES, FEES, AND 
        COSTS.] 
           Penalties, cost reimbursements, fees, and other money 
        collected under this chapter must be deposited into the state 
        treasury and credited to the appropriate nursery and 
        phytosanitary or seed account. 
           Sec. 10.  [18J.10] [CIVIL PENALTIES.] 
           Subdivision 1.  [GENERAL PENALTY.] Except as provided in 
        subdivision 2, a person who violates this chapter or an order, 
        standard, stipulation, agreement, or schedule of compliance of 
        the commissioner is subject to a civil penalty of up to $7,500 
        per day of violation as determined by the court. 
           Subd. 2.  [DEFENSE TO CIVIL REMEDIES AND DAMAGES.] As a 
        defense to a civil penalty or claim for damages under 
        subdivision 1, the defendant may prove that the violation was 
        caused solely by an act of God, an act of war, or an act or 
        failure to act that constitutes sabotage or vandalism, or any 
        combination of these defenses. 
           Subd. 3.  [ACTIONS TO COMPEL PERFORMANCE.] In an action to 
        compel performance of an order of the commissioner to enforce a 
        provision of this chapter, the court may require a defendant 
        adjudged responsible to perform the acts within the person's 
        power that are reasonably necessary to accomplish the purposes 
        of the order. 
           Subd. 4.  [RECOVERY OF PENALTIES BY CIVIL ACTION.] The 
        civil penalties and payments provided for in this chapter may be 
        recovered by a civil action brought by the county attorney or 
        the attorney general in the name of the state. 
           Sec. 11.  [18J.11] [CRIMINAL PENALTIES.] 
           Subdivision 1.  [GENERAL VIOLATION.] Except as provided in 
        subdivisions 2 and 3, a person is guilty of a misdemeanor if the 
        person violates this chapter or an order, standard, stipulation, 
        agreement, or schedule of compliance of the commissioner. 
           Subd. 2.  [VIOLATION ENDANGERING HUMANS.] A person is 
        guilty of a gross misdemeanor if the person violates this 
        chapter or an order, standard, stipulation, agreement, or 
        schedule of compliance of the commissioner, and the violation 
        endangers humans. 
           Subd. 3.  [VIOLATION WITH KNOWLEDGE.] A person is guilty of 
        a gross misdemeanor if the person knowingly violates this 
        chapter or an order, standard, stipulation, agreement, or 
        schedule of compliance of the commissioner. 

                                   ARTICLE 7 
                               CONFORMING CHANGES 
           Section 1.  [REPEALER.] 
           (a) Minnesota Statutes 2002, sections 17.23; 18.012; 
        18.021; 18.022; 18.0223; 18.0225; 18.0227; 18.0228; 18.0229; 
        18.023; 18.024; 18.041; 18.051; 18.061; 18.071; 18.081; 18.091; 
        18.101; 18.111; 18.121; 18.131; 18.141; 18.151; 18.161; 18.331; 
        18.332; 18.333; 18.334; 18.335; 18.44; 18.45; 18.46; 18.47; 
        18.48; 18.49; 18.50; 18.51; 18.52; 18.525; 18.53; 18.54; 18.55; 
        18.56; 18.57; 18.59; 18.60; 18.61; 18.85, are repealed. 
           (b) Minnesota Rules, part 1510.0281, is repealed. 

                                   ARTICLE 8 
                                    SEED LAW 
           Section 1.  Minnesota Statutes 2002, section 21.81, is 
        amended by adding a subdivision to read: 
           Subd. 7a.  [DORMANT.] "Dormant" means viable seed, 
        exclusive of hard seed, that fail to germinate under the 
        specified germination conditions for the kind of seed. 
           Sec. 2.  Minnesota Statutes 2002, section 21.81, 
        subdivision 8, is amended to read: 
           Subd. 8.  [FLOWER SEEDS.] "Flower seeds" includes seeds of 
        herbaceous plants grown for their blooms, ornamental foliage, or 
        other ornamental parts and commonly known and sold under the 
        name of flower seeds in this state.  This does not include 
        native or introduced wildflowers. 
           Sec. 3.  Minnesota Statutes 2002, section 21.81, is amended 
        by adding a subdivision to read: 
           Subd. 10a.  [HARD SEED.] "Hard seed" means seeds that 
        remain hard at the end of the prescribed test period because 
        they have not absorbed water due to an impermeable seed coat. 
           Sec. 4.  Minnesota Statutes 2002, section 21.81, is amended 
        by adding a subdivision to read: 
           Subd. 11a.  [INERT MATTER.] "Inert matter" means all matter 
        that is not seed, including broken seeds, sterile florets, 
        chaff, fungus bodies, and stones as determined by methods 
        defined by rule. 
           Sec. 5.  Minnesota Statutes 2002, section 21.81, is amended 
        by adding a subdivision to read: 
           Subd. 16a.  [NATIVE WILDFLOWER.] "Native wildflower" means 
        a kind, type, or variety of wildflower derived from wildflowers 
        that are indigenous to Minnesota and wildflowers that are 
        defined or designated as native species under chapter 84D. 
           Sec. 6.  Minnesota Statutes 2002, section 21.81, is amended 
        by adding a subdivision to read: 
           Subd. 17b.  [ORIGIN.] "Origin," for an indigenous stand of 
        trees, means the area on which the trees are growing and, for a 
        nonindigenous stand, the place from which the seed or plants 
        were originally introduced.  "Origin" for agricultural and 
        vegetable seed is the area where the seed was produced, and for 
        native grasses and forbs, it is the area where the original seed 
        was harvested. 
           Sec. 7.  Minnesota Statutes 2002, section 21.81, is amended 
        by adding a subdivision to read: 
           Subd. 17c.  [OTHER CROP SEED.] "Other crop seed" means seed 
        of plants grown as crops, other than the variety included in the 
        pure seed, as determined by methods defined by rule. 
           Sec. 8.  Minnesota Statutes 2002, section 21.81, is amended 
        by adding a subdivision to read: 
           Subd. 17d.  [PERSON.] "Person" means an individual, firm, 
        corporation, partnership, association, trust, joint stock 
        company, or unincorporated organization; the state, a state 
        agency, or a political subdivision. 
           Sec. 9.  Minnesota Statutes 2002, section 21.82, is amended 
        to read: 
           21.82 [LABEL REQUIREMENTS; AGRICULTURAL, VEGETABLE, OR 
        FLOWER, OR WILDFLOWER SEEDS.] 
           Subdivision 1.  [FORM.] Each container of agricultural, 
        vegetable, or flower, or wildflower seed which is offered for 
        sale for sowing purposes shall must bear or have attached in a 
        conspicuous place a plainly written or printed label or tag in 
        the English language giving the information required by this 
        section.  This statement shall must not be modified or denied in 
        the labeling or on another label attached to the container.  
           Subd. 2.  [CONTENT.] For agricultural, vegetable, or 
        flower, or wildflower seeds offered for sale as agricultural 
        seed, except as otherwise provided in subdivisions 4, 5, and 
        6, 7 and 8, the label shall must contain:  
           (a) The name of the kind or kind and variety for each 
        agricultural or vegetable seed component in excess of five 
        percent of the whole and the percentage by weight of each in 
        order of its predominance.  The commissioner shall by rule 
        designate the kinds that are required to be labeled as to 
        variety.  If the variety of those kinds generally labeled as to 
        variety is not stated and it is not required to be stated, the 
        label shall show the name of the kind and the words:  "Variety 
        not stated."  The heading "pure seed" must be indicated on the 
        seed label in close association with other required label 
        information.  
           (1) The percentage that is hybrid shall be at least 95 
        percent of the percentage of pure seed shown unless the 
        percentage of pure seed which is hybrid seed is shown 
        separately.  If two or more kinds or varieties are present in 
        excess of five percent and are named on the label, each that is 
        hybrid shall be designated as hybrid on the label.  Any one kind 
        or kind and variety that has pure seed which is less than 95 
        percent but more than 75 percent hybrid seed as a result of 
        incompletely controlled pollination in a cross shall be labeled 
        to show the percentage of pure seed that is hybrid seed or a 
        statement such as "contains from 75 percent to 95 percent hybrid 
        seed."  No one kind or variety of seed shall be labeled as 
        hybrid if the pure seed contains less than 75 percent hybrid 
        seed.  The word hybrid shall be shown on the label in 
        conjunction with the kind.  
           (2) Blends shall be listed on the label using the term 
        "blend" in conjunction with the kind.  
           (3) Mixtures shall be listed on the label using the term 
        "mixture," "mix," or "mixed."  
           (b) Lot number or other lot identification.  
           (c) Origin, if known, or that the origin is unknown.  
           (d) Percentage by weight of all weed seeds present in 
        agricultural, vegetable, or flower seed.  This percentage may 
        not exceed one percent.  If weed seeds are not present in 
        vegetable or flower seeds, The heading "weed seeds seed" may be 
        omitted from the label must be indicated on the seed label in 
        close association with other required label information.  
           (e) Name and rate of occurrence per pound of each kind of 
        restricted noxious weed seeds present.  They shall must be 
        listed under the heading "noxious weed seeds."  If noxious weed 
        seeds are not present in vegetable or flower seeds, the heading 
        "noxious weed seeds" may be omitted from the label in close 
        association with other required label information.  
           (f) Percentage by weight of agricultural, vegetable, or 
        flower seeds other than those kinds and varieties required to be 
        named on the label.  They shall must be listed under the heading 
        "other crop."  If "other crop" seeds are not present in 
        vegetable or flower seeds, the heading "other crop" may be 
        omitted from the label in close association with other required 
        label information.  
           (g) Percentage by weight of inert matter.  The heading 
        "inert matter" must be indicated on the seed label in close 
        association with other required label information.  
           (h) Net weight of contents, to appear on either the 
        container or the label, except that in the case of vegetable or 
        flower seed containers with contents of 200 seeds or less, a 
        statement indicating the number of seeds in the container may be 
        listed along with or in lieu of the net weight of contents.  
           (i) For each named agricultural or vegetable kind or 
        variety of seed:  
           (1) percentage of germination, exclusive of hard or dormant 
        seed or both; 
           (2) percentage of hard or dormant seed or both, if present; 
        and 
           (3) the calendar month and year the percentages were 
        determined by test or the statement "sell by (month and year)" 
        which may not be more than 12 months from the date of test, 
        exclusive of the month of test.  
        The headings for "germination" and "hard seed or dormant seed" 
        percentages must be stated separately on the seed label.  A 
        separate percentage derived from combining these percentages may 
        also be stated on the seed label, but the heading for this 
        percentage must be "total germination and hard seed or dormant 
        seed when applicable."  They must not be stated as "total live 
        seed," "total germination," or in any other unauthorized manner. 
           (j) Name and address of the person who labeled the seed or 
        who sells the seed within this state, or a code number which has 
        been registered with the commissioner.  
           Subd. 3.  [TREATED SEED.] For all named agricultural, 
        vegetable, or flower, or wildflower seeds which are treated, for 
        which a separate label may be used, the label shall must contain:
           (a) (1) a word or statement to indicate that the seed has 
        been treated; 
           (b) (2) the commonly accepted, coined, chemical, or 
        abbreviated generic chemical name of the applied substance; 
           (c) (3) the caution statement "Do not use for food, feed, 
        or oil purposes" if the substance in the amount present with the 
        seed is harmful to human or other vertebrate animals; 
           (d) (4) in the case of mercurials or similarly toxic 
        substances, a poison statement and symbol; 
           (e) (5) a word or statement describing the process used 
        when the treatment is not of pesticide origin; and 
           (f) (6) the date beyond which the inoculant is considered 
        ineffective if the seed is treated with an inoculant.  It shall 
        must be listed on the label as "inoculant:  expires (month and 
        year)" or wording that conveys the same meaning.  
           Subd. 4.  [HYBRID SEED CORN.] For hybrid seed corn purposes 
        a label shall must contain:  
           (a) (1) a statement indicating the number of seeds in the 
        container may be listed along with or in lieu of the net weight 
        of contents; and 
           (b) (2) for each variety of hybrid seed field corn, the day 
        classification as determined by the originator or owner.  The 
        day classification shall must approximate the number of days of 
        growing season necessary from emergence of the corn plant above 
        ground to relative maturity and shall must conform to the day 
        classification established by the director of the Minnesota 
        agricultural experiment station for the appropriate zone.  
           Subd. 5.  [GRASS SEED.] For grass seed and mixtures of 
        grass seeds intended for lawn and turf purposes, the 
        requirements in clauses paragraphs (a) to (c) and (b) must be 
        met.  
           (a) The label shall must contain the percentage by weight 
        of inert matter, up to ten percent by weight except for those 
        kinds specified by rule.  The percentage by weight of foreign 
        material not common to grass seed must be listed as a separate 
        item in close association with the inert matter 
        percentage statement "sell by (month and year listed here)" 
        which may be no more than 15 months from the date of test, 
        exclusive of the month of test.  
           (b) If the seed contains no "other crop" seed, the 
        following statement may be used and may be flagged:  "contains 
        no other crop seed."  
           (c) When grass seeds are sold outside their original 
        containers, the labeling requirements are met if the seed is 
        weighed from a properly labeled container in the presence of the 
        purchaser.  
           Subd. 6.  [COATED AGRICULTURAL SEEDS.] For coated 
        agricultural seeds the label shall must contain:  
           (a) (1) percentage by weight of pure seeds with coating 
        material removed; 
           (b) (2) percentage by weight of coating material shown as a 
        separate item in close association with the percentage of inert 
        matter; and 
           (c) (3) percentage of germination determined on 400 pellets 
        with or without seeds.  
           Subd. 7.  [VEGETABLE SEEDS.] For vegetable seeds prepared 
        for use in home gardens or household plantings the requirements 
        in clauses paragraphs (a) to (d) (p) apply.  The origin may be 
        omitted from the label.  Vegetable seeds packed for sale in 
        commercial quantities to farmers, conservation groups, and other 
        similar entities are considered agricultural seeds and must be 
        labeled accordingly.  
           (a) The label shall must contain the following: name of the 
        kind or kind and variety for each seed component in excess of 
        five percent of the whole and the percentage by weight of each 
        in order of its predominance.  If the variety of those kinds 
        generally labeled as to variety is not stated and it is not 
        required to be stated, the label must show the name of the kind 
        and the words "variety not stated." 
           (b) The percentage that is hybrid must be at least 95 
        percent of the percentage of pure seed shown unless the 
        percentage of pure seed which is hybrid seed is shown 
        separately.  If two or more kinds of varieties are present in 
        excess of five percent and are named on the label, each that is 
        hybrid must be designated as hybrid on the label.  Any one kind 
        or kind and variety that has pure seed that is less than 95 
        percent but more than 75 percent hybrid seed as a result of 
        incompletely controlled pollination in a cross must be labeled 
        to show the percentage of pure seed that is hybrid seed or a 
        statement such as "contains from 75 percent to 95 percent hybrid 
        seed."  No one kind or variety of seed may be labeled as hybrid 
        if the pure seed contains less than 75 percent hybrid seed.  The 
        word "hybrid" must be shown on the label in conjunction with the 
        kind. 
           (c) Blends must be listed on the label using the term 
        "blend" in conjunction with the kind. 
           (d) Mixtures shall be listed on the label using the term 
        "mixture," "mix," or "mixed." 
           (e) The label must show a lot number or other lot 
        identification. 
           (f) The origin may be omitted from the label.  
           (1) (g) The label must show the year for which the seed was 
        packed for sale listed as "packed for (year)," or for seed with 
        a percentage of germination that exceeds the standard last 
        established by the commissioner, the percentage of germination 
        and the calendar month and year that the percentages were 
        determined by test; and, or the calendar month and year the 
        germination test was completed and the statement "sell by (month 
        and year listed here)," which may be no more than 12 months from 
        the date of test, exclusive of the month of test. 
           (2) (h) For vegetable seeds which germinate less than the 
        standard last established by the commissioner, the label must 
        show:  
           (i) (1) a percentage of germination, exclusive of hard or 
        dormant seed or both; 
           (ii) (2) a percentage of hard or dormant seed or both, if 
        present; and 
           (iii) (3) the words "below standard" in not less than eight 
        point type and the month and year the percentages were 
        determined by test. 
           (i) The net weight of the contents must appear on either 
        the container or the label, except that for containers with 
        contents of 200 seeds or less a statement indicating the number 
        of seeds in the container may be listed along with or in lieu of 
        the net weight of contents.  
           (b) (j) The heading for and percentage by weight of pure 
        seed may be omitted from a label if the total is more than 90 
        percent. 
           (k) The heading for and percentage by weight of weed seed 
        may be omitted from a label if they are not present in the seed. 
           (l) The heading "noxious weed seeds" may be omitted from a 
        label if they are not present in the seed. 
           (m) The heading for and percentage by weight of other crop 
        seed may be omitted from a label if it is less than five percent.
           (c) (n) The heading for and percentage by weight of inert 
        matter may be omitted from a label if it is less than ten 
        percent. 
           (o) The label must contain the name and address of the 
        person who labeled the seed or who sells the seed in this state 
        or a code number that has been registered with the commissioner. 
           (d) (p) The labeling requirements for vegetable seeds 
        prepared for use in home gardens or household plantings when 
        sold outside their original containers are met if the seed is 
        weighed from a properly labeled container in the presence of the 
        purchaser.  
           Subd. 8.  [FLOWER SEEDS.] (a) All flower seed labels shall 
        contain: For flower and wildflower seeds prepared for use in 
        home gardens or household plantings, the requirements in 
        paragraphs (a) to (l) apply.  Flower and wildflower seeds packed 
        for sale in commercial quantities to farmers, conservation 
        groups, and other similar entities are considered agricultural 
        seeds and must be labeled accordingly.  
           (1) (a) The label must contain the name of the kind and 
        variety or a statement of type and performance characteristics 
        as prescribed by rules; rule. 
           (b) The percentage that is hybrid must be at least 95 
        percent of the percentage of pure seed shown unless the 
        percentage of pure seed which is hybrid seed is shown 
        separately.  If two or more kinds of varieties are present in 
        excess of five percent and are named on the label, each that is 
        hybrid must be designated as hybrid on the label.  Any one kind 
        or kind and variety that has pure seed that is less than 95 
        percent but more than 75 percent hybrid seed as a result of 
        incompletely controlled pollination in a cross must be labeled 
        to show the percentage of pure seed that is hybrid seed or a 
        statement such as "contains from 75 percent to 95 percent hybrid 
        seed."  No one kind or variety of seed may be labeled as hybrid 
        if the pure seed contains less than 75 percent hybrid seed.  The 
        word "hybrid" must be shown on the label in conjunction with the 
        kind. 
           (c) Blends must be listed on the label using the term 
        "blend" in conjunction with the kind. 
           (d) Mixtures must be listed on the label using the term 
        "mixture," "mix," or "mixed." 
           (e) The label must contain the lot number or other lot 
        identification. 
           (f) The origin may be omitted from the label. 
           (2) (g) The label must contain the year for which the seed 
        was packed for sale listed as "packed for (year)," or for seed 
        with a percentage of germination that exceeds the standard last 
        established by the commissioner, the percentage of germination 
        and the calendar month and year that the percentage was 
        percentages were determined by test; and, or the calendar month 
        and year the germination test was completed and the statement 
        "sell by (month and year listed here)," which may be no more 
        than 12 months from the date of test, exclusive of the month of 
        test. 
           (3) (h) For flower seeds which germinate less than the 
        standard last established by the commissioner, the label must 
        show:  
           (i) the (1) percentage of germination exclusive of hard or 
        dormant seed or both; and 
           (ii) (2) percentage of hard or dormant seed or both, if 
        present; and 
           (3) the words "below standard" in not less than eight point 
        type and the month and year this percentage was determined by 
        test.  
           (b) The origin may be omitted from the label. 
           (i) The label must show the net weight of contents on 
        either the container or the label, except that for containers 
        with contents of 200 seeds or less a statement indicating the 
        number of seeds in the container may be listed along with or in 
        lieu of the net weight of contents. 
           (c) (j) The heading for and percentage by weight of pure 
        seed may be omitted from a label if the total is more than 90 
        percent. 
           (k) The heading for and percentage by weight of weed seed 
        may be omitted from a label if they are not present in the seed. 
           (l) The heading "noxious weed seeds" may be omitted from a 
        label if they are not present in the seed. 
           (m) The heading for and percentage by weight of other crop 
        seed may be omitted from a label if it is less than five percent.
           (d) (n) The heading for and percentage by weight of inert 
        matter may be omitted from a label if it is less than ten 
        percent. 
           (o) The label must show the name and address of the person 
        who labeled the seed or who sells the seed within this state, or 
        a code number which has been registered with the commissioner.  
           Sec. 10.  Minnesota Statutes 2002, section 21.83, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LABEL CONTENT.] For all tree or shrub seed 
        subject to this section the label shall contain:  
           (a) the common name of the species, and the subspecies if 
        appropriate; 
           (b) the scientific name of the genus and species, and the 
        subspecies if appropriate; 
           (c) the lot number or other lot identification; 
           (d) for seed collected from a predominantly indigenous 
        stand, the area of collection given by latitude and longitude, 
        or geographic description, or political subdivision such as 
        state or county; 
           (e) for seed collected from a predominantly nonindigenous 
        stand, the identity of the area of collection and the origin of 
        the stand or the words "origin not indigenous"; 
           (f) the elevation or the upper and lower limits of 
        elevation within which the seed was collected; 
           (g) the percentage of pure seed by weight; 
           (h) for those kinds of seed for which standard testing 
        procedures are prescribed:  
           (1) the percentage of germination exclusive of hard or 
        dormant seed; 
           (2) the percentage of hard or dormant seed, if present; and 
           (3) the calendar month and year the percentages were 
        determined by test; or 
           (4) in lieu of the requirements of clauses (1) to (3), the 
        seed may be labeled "test is in progress, results will be 
        supplied upon request"; 
           (i) for those species for which standard germination 
        testing procedures have not been prescribed by the commissioner, 
        the calendar year in which the seed was collected; and 
           (j) the name and address of the person who labeled the seed 
        or who sells the seed within this state.  
           Sec. 11.  Minnesota Statutes 2002, section 21.84, is 
        amended to read: 
           21.84 [RECORDS.] 
           Each person whose name appears on the label of 
        agricultural, vegetable, flower, wildflower, tree, or shrub 
        seeds subject to section 21.82 or 21.83 shall keep for three 
        years complete records of each lot of agricultural, vegetable, 
        flower, wildflower, tree, or shrub seed sold in this state and 
        shall keep for one year a file sample of each lot of seed after 
        disposition of the lot.  In addition, the grower shall have as a 
        part of the record a "genuine grower's declaration" or a "tree 
        seed collector's declaration."  
           Sec. 12.  Minnesota Statutes 2002, section 21.85, 
        subdivision 11, is amended to read: 
           Subd. 11.  [RULES.] The commissioner may make necessary 
        rules for the proper enforcement of sections 21.80 to 
        21.92 adopt rules under this chapter.  Existing rules shall 
        remain in effect unless permanent rules are made that supersede 
        them.  A violation of the rules is a violation of this chapter. 
           Sec. 13.  Minnesota Statutes 2002, section 21.85, 
        subdivision 13, is amended to read: 
           Subd. 13.  [SAMPLING EXPORT SEED.] The commissioner may 
        sample agricultural, vegetable, flower, wildflower, tree, or 
        shrub seeds which are destined for export to other countries, 
        and may establish and collect suitable fees from the exporter 
        for this service.  
           Sec. 14.  Minnesota Statutes 2002, section 21.86, is 
        amended to read: 
           21.86 [UNLAWFUL ACTS.] 
           Subdivision 1.  [PROHIBITIONS.] A person may not advertise 
        or sell any agricultural, vegetable, flower, or wildflower, tree 
        and, or shrub seed if:  
           (a) except as provided in clauses (1) to (3), a test to 
        determine the percentage of germination required by sections 
        21.82 and 21.83 has not been completed within a nine-month 
        12-month period, exclusive of the calendar month in which the 
        test was completed. or it is offered for sale beyond the sell by 
        date exclusive of the calendar month in which the seed was to 
        have been sold, except that:  
           (1) when advertised or offered for sale as agricultural 
        seed, native grass and forb (wildflowers) seeds must have been 
        tested for percentage of germination as required by section 
        21.82 within a 14-month 15-month period, exclusive of the 
        calendar month in which the test was completed.; 
           (2) it is unlawful to offer cool season lawn and turf 
        grasses including Kentucky bluegrass, red fescue, chewings 
        fescue, hard fescue, tall fescue, perennial ryegrass, 
        intermediate ryegrass, annual ryegrass, colonial bent grass, 
        creeping bent grass, and mixtures or blends of those grasses, 
        for sale beyond the sell by date exclusive of the calendar month 
        in which the seed was to have been sold; 
           (3) this prohibition does not apply to tree, shrub, 
        agricultural, flower, wildflower, or vegetable seeds packaged in 
        hermetically sealed containers.  Seeds packaged in hermetically 
        sealed containers under the conditions defined by rule may be 
        offered for sale for a period of 36 months after the last day of 
        the month that the seeds were tested for germination prior to 
        packaging.; and 
           (3) (4) if seeds in hermetically sealed containers are 
        offered for sale more than 36 months after the last day of the 
        month in which they were tested prior to packaging, they must be 
        retested within a nine-month period, exclusive of the calendar 
        month in which the retest was completed; 
           (b) it is not labeled in accordance with sections 21.82 and 
        21.83 or has false or misleading labeling; 
           (c) false or misleading advertisement has been used in 
        respect to its sale; 
           (d) it contains prohibited noxious weed seeds; 
           (e) it consists of or contains restricted noxious weed 
        seeds in excess of 25 seeds per pound or in excess of the number 
        declared on the label attached to the container of the seed or 
        associated with the seed; 
           (f) it contains more than one percent by weight of all weed 
        seeds; 
           (g) it contains less than the stated net weight of 
        contents; 
           (h) it contains less than the stated number of seeds in the 
        container; 
           (i) it contains any labeling, advertising, or other 
        representation subject to sections 21.82 and 21.83 representing 
        the seed to be certified unless:  
           (1) it has been determined by a seed certifying agency that 
        the seed conformed to standards of purity and identity as to 
        kind, species, subspecies, or variety, and also that tree seed 
        was found to be of the origin and elevation claimed, in 
        compliance with the rules pertaining to the seed; and 
           (2) the seed bears an official label issued for it by a 
        seed certifying agency stating that the seed is of a certified 
        class and a specified kind, species, subspecies, or variety; 
           (j) it is labeled with a variety name but not certified by 
        an official seed certifying agency when it is a variety for 
        which a United States certificate of plant variety protection 
        has been granted under United States Code, title 7, sections 
        2481 to 2486, specifying sale by variety name only as a class of 
        certified seed.  Seed from a certified lot may be labeled as to 
        variety name when used in a blend or mixture by or with approval 
        of the owner of the variety; or 
           (k) the person whose name appears on the label does not 
        have complete records including a file sample of each lot of 
        agricultural, vegetable, flower, tree or shrub seed sold in this 
        state as required in section 21.84. 
           Subd. 2.  [MISCELLANEOUS VIOLATIONS.] No person may:  
           (a) detach, alter, deface, or destroy any label required in 
        sections 21.82 and 21.83 or, alter or substitute seed in a 
        manner that may defeat the purposes of sections 21.82 and 21.83, 
        or alter or falsify any seed tests, laboratory reports, records, 
        or other documents to create a misleading impression as to kind, 
        variety, history, quality, or origin of the seed; 
           (b) hinder or obstruct in any way any authorized person in 
        the performance of duties under sections 21.80 to 21.92; 
           (c) fail to comply with a "stop sale" order or to move or 
        otherwise handle or dispose of any lot of seed held under a stop 
        sale order or attached tags, except with express permission of 
        the enforcing officer for the purpose specified; 
           (d) use the word "type" in any labeling in connection with 
        the name of any agricultural seed variety; 
           (e) use the word "trace" as a substitute for any statement 
        which is required; or 
           (f) plant any agricultural seed which the person knows 
        contains weed seeds or noxious weed seeds in excess of the 
        limits for that seed.  
           Sec. 15.  Minnesota Statutes 2002, section 21.88, is 
        amended to read: 
           21.88 [PENALTIES NOT TO APPLY.] 
           Subdivision 1.  [MISDEMEANOR; GROSS MISDEMEANOR.] A 
        violation of sections 21.80 to 21.92 or a rule adopted under 
        section 21.85 is a misdemeanor.  Each additional day of 
        violation is a separate offense.  A subsequent violation by a 
        person is a gross misdemeanor.  
           Subd. 2.  [UNLAWFUL PRACTICE.] In addition to other 
        penalties provided by law, a person who violates a provision of 
        sections 21.80 to 21.92 or a rule adopted under section 21.85 
        has committed an unlawful practice under sections 325F.68 and 
        325F.69 and is subject to the remedies provided in sections 8.31 
        and 325F.70.  
           Subd. 3.  [PENALTIES NOT TO APPLY.] A person is not subject 
        to the penalties in subdivision 1 or 2 for having sold seeds 
        which were incorrectly labeled or represented as to kind, 
        species, subspecies, if appropriate, variety, type, origin and 
        year, elevation or place of collection if required, if the seeds 
        cannot be identified by examination unless the person has failed 
        to obtain an invoice or genuine grower's or tree seed 
        collector's declaration or other labeling information and to 
        take other reasonable precautions to ensure the identity is as 
        stated.  
           Sec. 16.  Minnesota Statutes 2002, section 21.89, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PERMITS; ISSUANCE AND REVOCATION.] The 
        commissioner shall issue a permit to the initial labeler of 
        agricultural, vegetable, or flower, and wildflower seeds which 
        are sold for use in Minnesota and which conform to and are 
        labeled under sections 21.80 to 21.92.  The categories of 
        permits are as follows: 
           (1) for initial labelers who sell 50,000 pounds or less of 
        agricultural seed each calendar year, an annual permit issued 
        for a fee established in section 21.891, subdivision 2, 
        paragraph (b); 
           (2) for initial labelers who sell vegetable, flower, and 
        wildflower seed packed for use in home gardens or household 
        plantings, an annual permit issued for a fee established in 
        section 21.891, subdivision 2, paragraph (c), based upon the 
        gross sales from the previous year; and 
           (3) for initial labelers who sell more than 50,000 pounds 
        of agricultural seed each calendar year, a permanent permit 
        issued for a fee established in section 21.891, subdivision 2, 
        paragraph (d). 
           In addition, the person shall furnish to the commissioner 
        an itemized statement of all seeds sold in Minnesota for the 
        periods established by the commissioner.  This statement shall 
        be delivered, along with the payment of the fee, based upon the 
        amount and type of seed sold, to the commissioner no later than 
        30 days after the end of each reporting period.  Any person 
        holding a permit shall show as part of the analysis labels or 
        invoices on all agricultural, vegetable, flower, wildflower, 
        tree, or shrub seeds all information the commissioner requires.  
        The commissioner may revoke any permit in the event of failure 
        to comply with applicable laws and rules. 
           Sec. 17.  Minnesota Statutes 2002, section 21.89, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EXEMPTIONS.] An initial labeler who sells for 
        use in Minnesota agricultural, vegetable, or flower seeds must 
        have a seed fee permit unless:  
           (a) The person labels and sells less than 50,000 pounds of 
        agricultural seed in Minnesota each calendar year.  If more than 
        50,000 pounds are labeled and sold in Minnesota by any person, 
        the person must have a seed fee permit and pay fees on all seed 
        sold.  A person who labels and sells grass seeds and mixtures of 
        grass seeds intended for lawn or turf purposes is not exempted 
        from having a permit and paying seed fees on all seeds in this 
        category sold in Minnesota; or 
           (b) the agricultural, vegetable, or flower seeds are of the 
        breeder or foundation seed classes of varieties developed by 
        publicly financed research agencies intended for the purpose of 
        increasing the quantity of seed available.  
           Sec. 18.  [21.891] [MINNESOTA SEED LAW FEES.] 
           Subdivision 1.  [SAMPLING EXPORT SEED.] In accordance with 
        section 21.85, subdivision 13, the commissioner may, if 
        requested, sample seed destined for export to other countries.  
        The fee for sampling export seed is an hourly rate published 
        annually by the commissioner and it must be an amount sufficient 
        to recover the actual costs of the service provided. 
           Subd. 2.  [SEED FEE PERMITS.] (a) An initial labeler who 
        wishes to sell seed in Minnesota must comply with section 21.89, 
        subdivisions 1 and 2, and the procedures in this subdivision.  
        Each initial labeler who wishes to sell seed in Minnesota must 
        apply to the commissioner to obtain a permit.  The application 
        must contain the name and address of the applicant, the 
        application date, and the name and title of the applicant's 
        contact person. 
           (b) The application for a seed permit covered by section 
        21.89, subdivision 2, clause (1), must be accompanied by an 
        application fee of $50. 
           (c) The application for a seed permit covered by section 
        21.89, subdivision 2, clause (2), must be accompanied by an 
        application fee based on the level of annual gross sales as 
        follows: 
           (1) for gross sales of $0 to $25,000, the annual permit fee 
        is $50; 
           (2) for gross sales of $25,001 to $50,000, the annual 
        permit fee is $100; 
           (3) for gross sales of $50,001 to $100,000, the annual 
        permit fee is $200; 
           (4) for gross sales of $100,001 to $250,000, the annual 
        permit fee is $500; 
           (5) for gross sales of $250,001 to $500,000, the annual 
        permit fee is $1,000; and 
           (6) for gross sales of $500,001 and above, the annual 
        permit fee is $2,000. 
           (d) The application for a seed permit covered by section 
        21.89, subdivision 2, clause (3), must be accompanied by an 
        application fee of $50.  Initial labelers holding seed fee 
        permits covered under this paragraph need not apply for a new 
        permit or pay the application fee.  Under this permit category, 
        the fees for the following kinds of agricultural seed sold 
        either in bulk or containers are: 
           (1) oats, wheat, and barley, 6.3 cents per hundredweight; 
           (2) rye, field beans, soybeans, buckwheat, and flax, 8.4 
        cents per hundredweight; 
           (3) field corn, 29.4 cents per hundredweight; 
           (4) forage, lawn and turf grasses, and legumes, 49 cents 
        per hundredweight; 
           (5) sunflower, $1.40 per hundredweight; 
           (6) sugar beet, $3.29 per hundredweight; and 
           (7) for any agricultural seed not listed in clauses (1) to 
        (6), the fee for the crop most closely resembling it in normal 
        planting rate applies.  
           (e) If, for reasons beyond the control and knowledge of the 
        initial labeler, seed is shipped into Minnesota by a person 
        other than the initial labeler, the responsibility for the seed 
        fees are transferred to the shipper.  An application for a 
        transfer of this responsibility must be made to the 
        commissioner.  Upon approval by the commissioner of the 
        transfer, the shipper is responsible for payment of the seed 
        permit fees. 
           (f) Seed permit fees may be included in the cost of the 
        seed either as a hidden cost or as a line item cost on each 
        invoice for seed sold.  To identify the fee on an invoice, the 
        words "Minnesota seed permit fees" must be used. 
           (g) All seed fee permit holders must file semiannual 
        reports with the commissioner, even if no seed was sold during 
        the reporting period.  Each semiannual report must be submitted 
        within 30 days of the end of each reporting period.  The 
        reporting periods are October 1 to March 31 and April 1 to 
        September 30 of each year or July 1 to December 31 and January 1 
        to June 30 of each year.  Permit holders may change their 
        reporting periods with the approval of the commissioner. 
           (h) The holder of a seed fee permit must pay fees on all 
        seed for which the permit holder is the initial labeler and 
        which are covered by sections 21.80 to 21.92 and sold during the 
        reporting period. 
           (i) If a seed fee permit holder fails to submit a 
        semiannual report and pay the seed fee within 30 days after the 
        end of each reporting period, the commissioner shall assess a 
        penalty of $100 or eight percent, calculated on an annual basis, 
        of the fee due, whichever is greater, but no more than $500 for 
        each late semiannual report.  A $15 penalty must be charged when 
        the semiannual report is late, even if no fee is due for the 
        reporting period.  Seed fee permits may be revoked for failure 
        to comply with the applicable provisions of this paragraph or 
        the Minnesota seed law. 
           Subd. 3.  [HYBRID SEED CORN VARIETY REGISTRATION 
        FEE.] Until August 1, 2006, and in accordance with section 
        21.90, subdivision 2, the fee for the registration of each 
        hybrid seed corn variety or blend is $50, which must be paid at 
        the time of registration.  New hybrid seed corn variety 
        registrations received after March 1 and renewed registrations 
        of older varieties received after August 1 of each year have an 
        annual registration fee of $75 per variety. 
           Subd. 4.  [DISCONTINUATION OF REGISTRATION AND 
        TESTING.] The commissioner, in consultation with the Minnesota 
        agricultural experiment station, shall develop a standardized 
        testing method for labelers to determine relative maturity for 
        the hybrid seed corn sold in this state.  Standards may be 
        developed without regard to chapter 14 and without complying 
        with section 14.386.  After development of the standardized 
        method, the registration and testing of hybrids sold in this 
        state will no longer be required. 
           Subd. 5.  [BRAND NAME REGISTRATION FEE.] The fee is $25 for 
        each variety registered for sale by brand name. 
           Sec. 19.  Minnesota Statutes 2002, section 21.90, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FEES.] A record of each new hybrid seed field 
        corn variety to be sold in Minnesota shall be registered with 
        the commissioner by February March 1 of each year by the 
        originator or owner.  Records of all other hybrid seed field 
        corn varieties sold in Minnesota shall be registered with the 
        commissioner by August 1 of each year by the originator or 
        owner.  The commissioner shall establish the annual fee for 
        registration for each variety.  The record shall include the 
        permanent designation of the hybrid as well as the day 
        classification and zone of adaptation, as determined under 
        subdivision 1, which the originator or owner declares to be the 
        zone in which the variety is adapted.  In addition, at the time 
        of the first registration of a hybrid seed field corn variety, 
        the originator or owner shall include a sworn statement that the 
        declaration of the zone of adaptation was based on actual field 
        trials in that zone and that the field trials substantiate the 
        declaration as to the day and zone classifications to which the 
        variety is adapted.  The name or number used to designate a 
        hybrid seed field corn variety in the registration is the only 
        name of all seed corn covered by or sold under that registration.
           Sec. 20.  Minnesota Statutes 2002, section 21.90, 
        subdivision 3, is amended to read: 
           Subd. 3.  [TESTS OF VARIETIES TRANSFER OF MONEY.] If the 
        commissioner needs to verify that a hybrid seed field corn 
        variety is adapted to the corn growing zone declared by the 
        originator or owner, it must, when grown in several official 
        comparative trials by the director of the Minnesota agricultural 
        experiment station in the declared zone of adaptation, have an 
        average kernel moisture at normal harvest time which does not 
        differ from the average kernel moisture content of three or more 
        selected standard varieties adapted for grain production in that 
        particular growing zone by more than four percentage points.  If 
        a new variety when tested has more than six percentage points of 
        moisture over the standard variety, it must have the relative 
        maturity increased by five days in the correct zone of 
        adaptation before it can be sold the second year.  If it does 
        not exceed the standard varieties by more than five percentage 
        points of moisture the second year tested, it can be sold the 
        third year with the same relative maturity.  If upon being 
        tested the third year the moisture percentage points are found 
        to be over the four percentage points allowed, the variety then 
        must have the relative maturity increased by five days in the 
        correct zone.  The varieties to be used as standard varieties 
        for determining adaptability to a zone shall be selected for 
        each zone by the director of the Minnesota agricultural 
        experiment station with the advice and consent of the 
        commissioner of agriculture.  Should a person, firm, originator, 
        or owner of a hybrid seed field corn variety wish to offer 
        hybrid seed for sale or distribution in this state, the person, 
        firm, originator, or owner not having distributed any products 
        in Minnesota during the past ten years, or not having any record 
        of testing by an agency acceptable to the commissioner, then 
        after registration of the variety the commissioner is required 
        to have the variety tested for one year by the director of the 
        Minnesota agricultural experiment station before it may be 
        distributed in Minnesota.  Should any person, firm, originator, 
        or owner of a seed field corn variety be guilty of two 
        successive violations with respect to the declaration of 
        relative maturity date and zone number, then the violator must 
        commence a program of pretesting for varieties as determined by 
        the commissioner.  The list of varieties to be used as standards 
        in each growing zone shall be sent by the commissioner not later 
        than February 1 of each year to each seed firm registering 
        hybrid varieties with the commissioner as of the previous April 
        1.  To assist in defraying the expenses of the Minnesota 
        agricultural experiment station in carrying out the provisions 
        of this section, there shall be transferred annually from the 
        seed inspection account to the agricultural experiment station a 
        sum which shall at least equal 80 60 percent of the total 
        revenue from all hybrid seed field corn variety registrations.  
           Sec. 21.  Minnesota Statutes 2002, section 21.901, is 
        amended to read: 
           21.901 [BRAND NAME REGISTRATION.] 
           The owner or originator of a variety of nonhybrid seed that 
        is to be sold in this state must annually register the variety 
        with the commissioner if the variety is to be sold only under a 
        brand name.  The registration must include the brand name and 
        the variety of seed.  The brand name for a blend or mixture need 
        not be registered. 
           The fee is $15 for each variety registered for sale by 
        brand name. 
           Sec. 22.  [REPEALER.] 
           (a) Minnesota Statutes 2002, section 21.85, subdivisions 1, 
        3, 4, 5, 6, 7, 8, and 9, are repealed.  
           (b) Minnesota Statutes, sections 21.891, subdivisions 3 and 
        4, as added by this article; and 21.90, are repealed August 1, 
        2006. 

                                   ARTICLE 9
                   CENTRAL IRON RANGE SANITARY SEWER DISTRICT
           Section 1.  Laws 2002, chapter 382, article 2, section 1, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DISTRICT.] "Central iron range sanitary sewer 
        district" and "district" mean the area over which the central 
        iron range sanitary sewer board has jurisdiction, which includes 
        the area within the cities of Hibbing, Chisholm, and Buhl, and 
        Kinney; the townships of Kinney, Balkan, and Great Scott; and 
        the territory occupied by Ironworld.  The district shall 
        precisely describe the area over which it has jurisdiction by a 
        metes and bounds description in the comprehensive plan adopted 
        pursuant to section 5. 
           Sec. 2.  Laws 2002, chapter 382, article 2, section 1, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LOCAL GOVERNMENTAL UNITS.] "Local governmental 
        units" or "governmental units" means the iron range resources 
        and rehabilitation board, the cities of Hibbing, Chisholm, and 
        Buhl, and Kinney, and the townships of Kinney, Balkan, and Great 
        Scott. 
           Sec. 3.  Laws 2002, chapter 382, article 2, section 2, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] A sanitary sewer district 
        is established in the cities of Hibbing, Chisholm, and Buhl, and 
        Kinney; the townships of Kinney, Balkan, and Great Scott; and 
        the territory occupied by Ironworld, to be known as the central 
        iron range sanitary sewer district.  The sewer district is under 
        the control and management of the central iron range sanitary 
        sewer board.  The board is established as a public corporation 
        and political subdivision of the state with perpetual succession 
        and all the rights, powers, privileges, immunities, and duties 
        granted to or imposed upon a municipal corporation, as provided 
        in sections 1 to 19.  
           Sec. 4.  Laws 2002, chapter 382, article 2, section 2, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MEMBERS AND SELECTION.] The board is composed of 
        13 members selected as provided in this subdivision.  Each of 
        the town boards of the townships shall meet to appoint one 
        resident to the sewer board.  Four members must be selected by 
        the governing body of the city of Hibbing.  Three members must 
        be selected by the governing body of the city of Chisholm.  Two 
        members must be selected by the governing body of the city of 
        Buhl.  One member must be selected by the governing body of the 
        city of Kinney.  One member must be selected by the iron range 
        resources and rehabilitation board on behalf of Ironworld.  Each 
        member has one vote.  The first terms are as follows:  four for 
        one year, four for two years, and five for three years, fixed by 
        lot at the district's first meeting.  Thereafter, all terms are 
        for three years. 
           Sec. 5.  Laws 2002, chapter 382, article 2, section 3, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PUBLIC EMPLOYEES.] The executive director, if 
        any, and other persons, if any, employed by the district are 
        public employees and have all the rights and duties conferred on 
        public employees under Minnesota Statutes, sections 179A.01 to 
        179A.25.  The board may elect to have employees become members 
        of either the public employees retirement association or the 
        Minnesota state retirement system.  The compensation and 
        conditions of employment of the employees must be governed by 
        rules applicable to state employees in the classified service 
        and to the provisions of Minnesota Statutes, chapter 15A. 
           Sec. 6.  Laws 2002, chapter 382, article 2, section 4, 
        subdivision 6, is amended to read: 
           Subd. 6.  [STUDIES AND INVESTIGATIONS.] The board may 
        conduct research studies and programs, collect and analyze data, 
        prepare reports, maps, charts, and tables, and conduct all 
        necessary hearings and investigations in connection with the 
        need for, benefits of, design, construction, and operation of 
        the district disposal system. 
           Sec. 7.  Laws 2002, chapter 382, article 2, section 4, 
        subdivision 8, is amended to read: 
           Subd. 8.  [PROPERTY RIGHTS, POWERS.] By vote of at least 75 
        percent of the members of the board, the board may acquire by 
        purchase, lease, condemnation, gift, or grant, any real or 
        personal property including positive and negative easements and 
        water and air rights, and it may construct, enlarge, improve, 
        replace, repair, maintain, and operate any interceptor, 
        treatment works, or water facility determined to be necessary or 
        convenient for the collection and disposal of sewage in the 
        district.  Any local governmental unit and the commissioners of 
        transportation and natural resources are authorized to convey to 
        or permit the use of any of the above-mentioned facilities owned 
        or controlled by it, by the board, subject to the rights of the 
        holders of any bonds issued with respect to those facilities, 
        with or without compensation, without an election or approval by 
        any other governmental unit or agency.  All powers conferred by 
        this subdivision may be exercised both within or without the 
        district as may be necessary for the exercise by the board of 
        its powers or the accomplishment of its purposes.  By vote of at 
        least 75 percent of the members of the board, the board may 
        hold, lease, convey, or otherwise dispose of the above-mentioned 
        property for its purposes upon the terms and in the manner it 
        deems advisable.  Unless otherwise provided, the right to 
        acquire lands and property rights by condemnation may be 
        exercised only in accordance with Minnesota Statutes, sections 
        117.011 to 117.232, and applies to any property or interest in 
        the property owned by any local governmental unit.  Property 
        devoted to an actual public use at the time, or held to be 
        devoted to such a use within a reasonable time, must not be so 
        acquired unless a court of competent jurisdiction determines 
        that the use proposed by the board is paramount to the existing 
        use.  Except in the case of property in actual public use, the 
        board may take possession of any property on which condemnation 
        proceedings have been commenced at any time after the issuance 
        of a court order appointing commissioners for its condemnation. 
           Sec. 8.  Laws 2002, chapter 382, article 2, section 4, 
        subdivision 10, is amended to read: 
           Subd. 10.  [DISPOSAL OF PROPERTY.] By vote of at least 75 
        percent of the members of the board, the board may sell, lease, 
        or otherwise dispose of any real or personal property acquired 
        by it which is no longer required for accomplishment of its 
        purposes.  The property may be sold in the manner provided by 
        Minnesota Statutes, section 469.065, insofar as practical.  The 
        board may give notice of sale as it deems appropriate.  When the 
        board determines that any property or any part of the district 
        disposal system acquired from a local governmental unit without 
        compensation is no longer required but is required as a local 
        facility by the governmental unit from which it was acquired, 
        the board may by resolution transfer it to that governmental 
        unit. 
           Sec. 9.  Laws 2002, chapter 382, article 2, section 5, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BOARD PLAN AND PROGRAM.] The board shall 
        adopt a comprehensive plan for the collection, treatment, and 
        disposal of sewage in the district for a designated period the 
        board deems proper and reasonable.  The board shall prepare and 
        adopt subsequent comprehensive plans for the collection, 
        treatment, and disposal of sewage in the district for each 
        succeeding designated period as the board deems proper and 
        reasonable.  All comprehensive plans of the district shall be 
        subject to the planning and zoning authority of St. Louis county 
        and in conformance with all planning and zoning ordinances of 
        St. Louis county.  The first plan, as modified by the board, and 
        any subsequent plan shall take into account the preservation and 
        best and most economic use of water and other natural resources 
        in the area; the preservation, use, and potential for use of 
        lands adjoining waters of the state to be used for the disposal 
        of sewage; and the impact the disposal system will have on 
        present and future land use in the area affected.  In no case 
        shall the comprehensive plan provide for more than 325 
        connections to the disposal system.  All connections must be 
        charged a full assessment.  Connections made after the initial 
        assessment period ends must be charged an amount equal to the 
        initial assessment plus an adjustment for inflation and plus any 
        other charges determined to be reasonable and necessary by the 
        board.  Deferred assessments may be permitted, as provided for 
        in Minnesota Statutes, chapter 429.  The plans shall include the 
        general location of needed interceptors and treatment works, a 
        description of the area that is to be served by the various 
        interceptors and treatment works, a long-range capital 
        improvements program, and any other details as the board deems 
        appropriate.  In developing the plans, the board shall consult 
        with persons designated for the purpose by governing bodies of 
        any governmental unit within the district to represent the 
        entities and shall consider the data, resources, and input 
        offered to the board by the entities and any planning agency 
        acting on behalf of one or more of the entities.  Each plan, 
        when adopted, must be followed in the district and may be 
        revised as often as the board deems necessary. 
           Sec. 10.  Laws 2002, chapter 382, article 2, section 5, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [REMOVAL OF AREA.] After adopting the first plan, 
        any of the local governmental units can elect not to be included 
        within the central iron range sanitary sewer district by 
        delivering a written resolution of the governing body of the 
        governmental unit to the central iron range sanitary sewer 
        district within 60 days of adoption of the first comprehensive 
        plan.  The area of the local governmental unit shall then be 
        removed from the district. 
           Sec. 11.  Laws 2002, chapter 382, article 2, section 6, is 
        amended to read: 
           Sec. 6.  [POWERS TO ISSUE OBLIGATIONS AND IMPOSE SPECIAL 
        ASSESSMENTS.] 
           The central iron range sanitary sewer board, in order to 
        implement the powers granted under sections 1 to 19 to 
        establish, maintain, and administer the central iron range 
        sanitary sewer district upon a vote of at least 75 percent of 
        the members of the board, may issue obligations and impose 
        special assessments against benefited property within the limits 
        of the district benefited by facilities constructed under 
        sections 1 to 19 in the manner provided for local governments by 
        Minnesota Statutes, chapter 429. 
           Sec. 12.  Laws 2002, chapter 382, article 2, section 8, 
        subdivision 3, is amended to read: 
           Subd. 3.  [UTILIZATION OF DISTRICT SYSTEM.] By vote of at 
        least 75 percent of the members of the board, the board may 
        require any person or local governmental unit to provide for the 
        discharge of any sewage, directly or indirectly, into the 
        district disposal system, or to connect any disposal system or a 
        part of it with the district disposal system wherever reasonable 
        opportunity for connection is provided; may regulate the manner 
        in which the connections are made; may require any person or 
        local governmental unit discharging sewage into the disposal 
        system to provide preliminary treatment for it; may prohibit the 
        discharge into the district disposal system of any substance 
        that it determines will or may be harmful to the system or any 
        persons operating it; and may require any local governmental 
        unit to discontinue the acquisition, betterment, or operation of 
        any facility for the unit's disposal system wherever and so far 
        as adequate service is or will be provided by the district 
        disposal system. 
           Sec. 13.  Laws 2002, chapter 382, article 2, section 9, is 
        amended to read: 
           Sec. 9.  [BUDGET.] 
           (a) The board shall prepare and adopt, on or before October 
        1, 2002 2003, and each year thereafter, a budget showing for the 
        following calendar year or other fiscal year determined by the 
        board, sometimes referred to in sections 1 to 19 as the budget 
        year, estimated receipts of money from all sources, including 
        but not limited to payments by each local governmental unit, 
        federal or state grants, taxes on property, and funds on hand at 
        the beginning of the year, and estimated expenditures for: 
           (1) costs of operation, administration, and maintenance of 
        the district disposal system; 
           (2) cost of acquisition and betterment of the district 
        disposal system; and 
           (3) debt service, including principal and interest, on 
        general obligation bonds and certificates issued pursuant to 
        section 13, and any money judgments entered by a court of 
        competent jurisdiction.  
           (b) Expenditures within these general categories, and any 
        other categories as the board may from time to time determine, 
        must be itemized in detail as the board prescribes.  The board 
        and its officers, agents, and employees must not spend money for 
        any purpose other than debt service without having set forth the 
        expense in the budget nor in excess of the amount set forth in 
        the budget for it.  No obligation to make an expenditure of the 
        above-mentioned type is enforceable except as the obligation of 
        the person or persons incurring it.  The board may amend the 
        budget at any time by transferring from one purpose to another 
        any sums except money for debt service and bond proceeds or by 
        increasing expenditures in any amount by which actual cash 
        receipts during the budget year exceed the total amounts 
        designated in the original budget.  The creation of any 
        obligation under section 13, or the receipt of any federal or 
        state grant is a sufficient budget designation of the proceeds 
        for the purpose for which it is authorized, and of the tax or 
        other revenue pledged to pay the obligation and interest on it, 
        whether or not specifically included in any annual budget. 
           Sec. 14.  Laws 2002, chapter 382, article 2, section 10, 
        subdivision 2, is amended to read: 
           Subd. 2.  [METHOD OF ALLOCATION OF CURRENT COSTS.] Current 
        costs must be allocated in the district on an equitable basis as 
        the board may determine by resolution to be in the best 
        interests of the district.  The adoption or revision of any 
        method of allocation used by the board must be by the 
        affirmative vote of at least two-thirds 75 percent of the 
        members of the board. 
           Sec. 15.  Laws 2002, chapter 382, article 2, section 11, is 
        amended to read: 
           Sec. 11.  [TAX LEVIES.] 
           To accomplish any duty imposed on it the board may, upon a 
        vote of at least 75 percent of the members of the board, in 
        addition to the powers granted in sections 1 to 19 and in any 
        other law or charter, exercise the powers granted any 
        municipality by Minnesota Statutes, chapters 117, 412, 429, 475, 
        sections 115.46, 444.075, and 471.59, with respect to the area 
        in the district.  By vote of at least 75 percent of the members 
        of the board, the board may levy taxes upon all taxable property 
        in the district for all or a part of the amount payable to the 
        board, pursuant to section 10, to be assessed and extended as a 
        tax upon that taxable property by the county auditor for the 
        next calendar year, free from any limit of rate or amount 
        imposed by law or charter.  The tax must be collected and 
        remitted in the same manner as other general taxes. 
           Sec. 16.  Laws 2002, chapter 382, article 2, section 12, 
        subdivision 5, is amended to read: 
           Subd. 5.  [POWER OF THE BOARD TO SPECIALLY ASSESS.] The 
        board may, upon a vote of at least 75 percent of the members of 
        the board, specially assess all or any part of the costs of 
        acquisition and betterment as provided in this subdivision, of 
        any project ordered under this section.  The special assessments 
        must be levied in accordance with Minnesota Statutes, sections 
        429.051 to 429.081, except as otherwise provided in this 
        subdivision.  No other provisions of Minnesota Statutes, chapter 
        429, apply.  For purposes of levying the special assessments, 
        the hearing on the project required in subdivision 1 serves as 
        the hearing on the making of the original improvement provided 
        for by Minnesota Statutes, section 429.051.  The area assessed 
        may be less than but may not exceed the area proposed to be 
        assessed as stated in the notice of hearing on the project 
        provided for in subdivision 2. 
           Sec. 17.  Laws 2002, chapter 382, article 2, section 13, 
        subdivision 3, is amended to read: 
           Subd. 3.  [GENERAL OBLIGATION BONDS.] The board may, upon a 
        vote of at least 75 percent of the members of the board, by 
        resolution authorize the issuance of general obligation bonds 
        for the acquisition or betterment of any part of the district 
        disposal system, including but without limitation the payment of 
        interest during construction and for a reasonable period 
        thereafter, or for the refunding of outstanding bonds, 
        certificates of indebtedness, or judgments.  The board shall 
        pledge its full faith and credit and taxing power for the 
        payment of the bonds and shall provide for the issuance and sale 
        and for the security of the bonds in the manner provided in 
        Minnesota Statutes, chapter 475.  The board has the same powers 
        and duties as a municipality issuing bonds under that law, 
        except that no election is required and the debt limitations of 
        Minnesota Statutes, chapter 475, do not apply to the bonds.  The 
        board may also pledge for the payment of the bonds and deduct 
        from the amount of any tax levy required under Minnesota 
        Statutes, section 475.61, subdivision 1, and any revenues 
        receivable under any state and federal grants anticipated by the 
        board and may covenant to refund the bonds if and when and to 
        the extent that for any reason the revenues, together with other 
        funds available and appropriated for that purpose, are not 
        sufficient to pay all principal and interest due or about to 
        become due, provided that the revenues have not been anticipated 
        by the issuance of certificates under subdivision 1. 
           Sec. 18.  Laws 2002, chapter 382, article 2, section 16, is 
        amended to read: 
           Sec. 16.  [SERVICE CONTRACTS WITH GOVERNMENTAL ENTITIES 
        OUTSIDE THE JURISDICTION OF THE BOARD.] 
           (a) The board may, upon a vote of at least 75 percent of 
        the members of the board, contract with the United States or any 
        agency of the federal government, any state or its agency, or 
        any municipal or public corporation, governmental subdivision or 
        agency or political subdivision in any state, outside the 
        jurisdiction of the board, for furnishing services to those 
        entities, including but not limited to planning for and the 
        acquisition, betterment, operation, administration, and 
        maintenance of any or all interceptors, treatment works, and 
        local water and sanitary sewer facilities.  The board may 
        include as one of the terms of the contract that the entity must 
        pay to the board an amount agreed upon as a reasonable estimate 
        of the proportionate share properly allocable to the entity of 
        costs of acquisition, betterment, and debt service previously 
        allocated in the district.  When payments are made by entities 
        to the board, they must be applied in reduction of the total 
        amount of costs thereafter allocated in the district, on an 
        equitable basis as the board deems to be in the best interests 
        of the district, applying so far as practicable and appropriate 
        the criteria set forth in section 10, subdivision 2.  A 
        municipality in the state of Minnesota may enter into a contract 
        and perform all acts and things required as a condition or 
        consideration therefor consistent with the purposes of sections 
        1 to 19, whether or not included among the powers otherwise 
        granted to the municipality by law or charter. 
           (b) The board shall contract with a qualified entity to 
        make necessary inspections of the district facilities, and to 
        otherwise process or assist in processing any of the work of the 
        district. 
           Sec. 19.  [LOCAL APPROVAL.] 
           This article takes effect the day after each of the 
        governing bodies of each of the local governmental units has 
        complied with Minnesota Statutes, section 645.021, subdivision 3.

                                   ARTICLE 10
                                 APPROPRIATIONS 
                              ECONOMIC DEVELOPMENT 
        Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or another named fund, to 
        the agencies and for the purposes specified in this act, to be 
        available for the fiscal years indicated for each purpose.  The 
        figures "2004" and "2005," where used in this act, mean that the 
        appropriation or appropriations listed under them are available 
        for the year ending June 30, 2004, or June 30, 2005, 
        respectively.  The term "first year" means the fiscal year 
        ending June 30, 2004, and the term "second year" means the 
        fiscal year ending June 30, 2005.  The term "DR-1419" as used in 
        this act refers to the area included in Presidential Declaration 
        of Major Disaster DR-1419, whether included in the original 
        declaration or added later by federal government action. 
                                SUMMARY BY FUND
                                  2004          2005           TOTAL
        General            $  134,620,000 $  128,527,000 $  263,147,000
        Petroleum Tank 
        Cleanup                   750,000          -0-          750,000
        Environmental 
        Fund                      700,000        700,000      1,400,000
        Workers'  
        Compensation           21,415,000     20,890,000     42,305,000
        Workforce Development 
        Fund                    9,200,000      9,120,000     18,320,000
        Special Revenue           240,000        240,000        480,000
        TOTAL              $  166,925,000 $  159,477,000 $  326,402,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2004         2005 
        Sec. 2.  TRADE AND ECONOMIC  
        DEVELOPMENT 
        Subdivision 1.  Total 
        Appropriation                     $   67,659,000 $   64,429,000
                      Summary by Fund
        General              57,219,000    54,819,000
        Petroleum Tank
        Cleanup                 750,000       -0-    
        Environmental Fund      700,000       700,000
        Workforce Development
        Fund                  8,750,000     8,670,000
        Special Revenue         240,000       240,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Business and Community 
        Development                           10,489,000      7,734,000
                      Summary by Fund
        General               9,039,000     7,034,000
        Petroleum Tank
        Cleanup                 750,000       -0-    
        Environmental Fund      700,000       700,000
        Of this amount, $35,000 the first year 
        from funds available for small business 
        assistance is for a onetime grant to 
        Blue Earth county for the Rural 
        Advanced Business Facilitation 
        program.  The grant shall be provided 
        on the condition that the funds be 
        matched on a one-to-one basis from 
        nonstate sources.  This appropriation 
        is available until spent. 
        $1,203,000 the first year and 
        $1,203,000 the second year are for 
        Minnesota investment fund grants. 
        $150,000 the first year and $150,000 
        the second year are for grants to the 
        rural policy and development center at 
        Minnesota State University, Mankato.  
        The grant shall be used for research 
        and policy analysis on emerging 
        economic and social issues in rural 
        Minnesota, to serve as a policy 
        resource center for rural Minnesota 
        communities, to encourage collaboration 
        across higher education institutions to 
        provide interdisciplinary team 
        approaches to research and problem 
        solving in rural communities, and to 
        administer overall operations of the 
        center. 
        The grant shall be provided upon the 
        condition that each state-appropriated 
        dollar be matched with a nonstate 
        dollar.  Acceptable matching funds are 
        nonstate contributions that the center 
        has received and have not been used to 
        match previous state grants.  The funds 
        not spent the first year are available 
        the second. 
        $1,000,000 the first year and 
        $1,000,000 the second year are onetime 
        appropriations to encourage and 
        facilitate a joint partnership with the 
        University of Minnesota and the Mayo 
        Foundation for research in 
        biotechnology and medical genomics.  
        This appropriation must be matched 
        dollar for dollar by nonstate funds.  
        Funds shall be made available on a 
        reimbursement basis after certification 
        to the commissioner of finance of the 
        nonstate match.  
        In the first year, the appropriation 
        funds operating costs of the 
        collaboration, including salaries, but 
        does not include capital expenditures.  
        The University of Minnesota and the 
        Mayo Foundation shall submit a business 
        plan to the governor, the chair of the 
        house jobs and economic development 
        committee, and the chair of the senate 
        jobs, housing, and community 
        development committee no later than 
        October 1, 2003.  The plan should 
        identify specific disciplines for 
        development and collaboration, data 
        access and confidentiality policies; 
        timelines, and include a discussion of 
        the expected economic benefits of the 
        partnership to the state of Minnesota.  
        After adoption of the business plan by 
        the governing bodies of the University 
        of Minnesota and the Mayo Foundation, 
        the appropriation in the second year 
        shall be made available on a 
        reimbursement basis to begin 
        implementation of the business plan.  A 
        preliminary report on the budgeted 
        expenditure of these funds should be 
        submitted no later than October 1, 
        2004.  A final report on the 
        expenditure of these funds should be 
        submitted no later than July 31, 2005. 
        $2,000,000 the first year is to the 
        Minnesota investment fund to make 
        grants to local units of government for 
        locally administered grants or loan 
        programs, including buyouts, for 
        businesses directly and adversely 
        affected by flooding in the area 
        included in DR-1419.  Criteria and 
        requirements must be locally 
        established with the approval of the 
        commissioner.  For the purposes of this 
        appropriation, Minnesota Statutes, 
        sections 116J.8731, subdivisions 3, 4, 
        5, and 7; 116J.993; 116J.994; and 
        116J.995, are waived.  Businesses that 
        receive grants or loans from this 
        appropriation must set goals for jobs 
        retained and wages paid within the area 
        included in DR-1419. 
        This is a onetime appropriation and is 
        available until expended. 
        Notwithstanding Minnesota Statutes, 
        section 115C.08, subdivision 4, 
        $750,000 the first year is for grants 
        to local units of government in the 
        area included in DR-1419 to safely 
        rehabilitate buildings if a portion of 
        the rehabilitation costs is 
        attributable to petroleum contamination 
        or to buy out property substantially 
        damaged by a petroleum tank release.  
        This appropriation is not subject to 
        the limitations of Minnesota Statutes, 
        section 115C.09, subdivision 3i. 
        This is a onetime appropriation from 
        the petroleum tank release cleanup fund 
        and is available until expended. 
        Subd. 3.  Minnesota Trade   
        Office                                 2,187,000      2,187,000 
        Of this amount, $127,000 the first year 
        is for a onetime transfer to the 
        department of agriculture for the 
        purposes of agricultural trade 
        promotion. 
        Subd. 4.  Workforce Development        7,385,000      7,385,000 
                      Summary by Fund
        General               7,285,000     7,285,000
        Workforce Development
        Fund                    100,000       100,000
        (a) $6,785,000 the first year and 
        $6,785,000 the second year are for the 
        job skills partnership and pathways 
        programs.  If the appropriation for 
        either year is insufficient, the 
        appropriation for the other year is 
        available.  This appropriation does not 
        cancel. 
        (b) $100,000 the first year and 
        $100,000 the second year are from the 
        workforce development fund for onetime 
        grants to Lifetrack Resources for its 
        immigrant/refugee collaborative 
        programs, including those related to 
        job-seeking skills and workplace 
        orientation, intensive job development, 
        functional work English, and on-site 
        job coaching. 
        (c) $250,000 the first year and 
        $250,000 the second year are from the 
        general fund for grants under Minnesota 
        Statutes, section 116J.8747 to Twin 
        Cities Rise to provide training to 
        hard-to-train individuals.  The 
        commissioner must present information 
        reported by grant recipients to the 
        legislative committees with 
        jurisdiction over economic development 
        by February 15 of 2004 and 2005. 
        (d) $100,000 the first year and 
        $100,000 the second year are for a 
        grant to the Metropolitan Economic 
        Development Association for continuing 
        minority business development programs 
        in the metropolitan area. 
        (e) $150,000 the first year and 
        $150,000 the second year are for grants 
        to WomenVenture for women's business 
        development programs. 
        Subd. 5.  Office of Tourism 
            8,066,000       8,059,000 
        To develop maximum private sector 
        involvement in tourism, $3,500,000 the 
        first year and $3,500,000 the second 
        year of the amounts appropriated for 
        marketing activities are contingent on 
        receipt of an equal contribution from 
        nonstate sources that have been 
        certified by the commissioner.  Up to 
        one-half of the match may be given in 
        in-kind contributions. 
        In order to maximize marketing grant 
        benefits, the commissioner must give 
        priority for joint venture marketing 
        grants to organizations with year-round 
        sustained tourism activities.  For 
        programs and projects submitted, the 
        commissioner must give priority to 
        those that encompass two or more areas 
        or that attract nonresident travelers 
        to the state. 
        If an appropriation for either year for 
        grants is not sufficient, the 
        appropriation for the other year is 
        available for it. 
        The commissioner may use grant dollars 
        or the value of in-kind services to 
        provide the state contribution for the 
        partnership program. 
        Any unexpended money from general fund 
        appropriations made under this 
        subdivision does not cancel but must be 
        placed in a special advertising account 
        for use by the office of tourism to 
        purchase additional media. 
        Of this amount, $50,000 the first year 
        is for a onetime grant to the 
        Mississippi River parkway commission to 
        support the increased promotion of 
        tourism along the Great River Road.  
        This appropriation is available until 
        June 30, 2005. 
        Of this amount, $175,000 the first year 
        and $175,000 the second year are for 
        the Minnesota film board.  The 
        appropriation in each year is available 
        only upon receipt by the board of $1 in 
        matching contributions of money or 
        in-kind from nonstate sources for every 
        $3 provided by this appropriation.  
        Subd. 6.  Administrative Support
             4,992,000      4,604,000
        Subd. 7.  Workforce Services           8,274,000      8,254,000 
                      Summary by Fund
        General               6,389,000     6,389,000
        Workforce Development
        Fund                  1,645,000     1,625,000
        Special Revenue         240,000       240,000
        (a) $990,000 the first year and 
        $990,000 the second year are for 
        displaced homemaker programs under 
        Minnesota Statutes, section 268.96.  Of 
        this amount, $750,000 each year is from 
        the workforce development fund and 
        $240,000 each year is from the special 
        revenue fund.  The commissioner of 
        economic security shall report to the 
        legislature by February 15, 2005, on 
        the outcome of grants under this 
        paragraph. 
        (b) $875,000 the first year and 
        $875,000 the second year are from the 
        workforce development fund for the 
        Opportunities Industrialization Center 
        programs.  
        (c) $1,257,000 the first year and 
        $1,257,000 the second year are for 
        youth intervention programs under 
        Minnesota Statutes, section 268.30.  
        One percent of this appropriation is 
        for a grant to the Minnesota Youth 
        Intervention Programs Association 
        (YIPA) to provide collaborative 
        training and technical assistance to 
        community-based grantees of the 
        program. The base funding in the fiscal 
        year 2006-2007 biennium is $1,446,000 
        each year. 
        (d) $4,154,000 the first year and 
        $4,154,000 the second year are for the 
        Minnesota youth program.  If the 
        appropriation in either year is 
        insufficient, the appropriation for the 
        other year is available.  Of the money 
        appropriated for the summer youth 
        program for the first year, $400,000 is 
        immediately available.  Any remaining 
        balance of the immediately available 
        money is available in the first year. 
        (e) $754,000 the first year and 
        $754,000 the second year are for the 
        Youthbuild program under Minnesota 
        Statutes, sections 268.361 to 
        268.3661.  A Minnesota Youthbuild 
        program funded under this section as 
        authorized in Minnesota Statutes, 
        sections 268.361 to 268.3661, qualifies 
        as an approved training program under 
        Minnesota Rules, part 5200.0930, 
        subpart 1. 
        (f) $20,000 the first year is a onetime 
        appropriation from the workforce 
        development fund for a transfer to the 
        University of Minnesota Duluth for the 
        purpose of funding the continuation of 
        workforce surveys in northeast 
        Minnesota.  The chancellor of the 
        University of Minnesota Duluth is 
        requested to direct the School of 
        Business and Economics to conduct a 
        survey of households and businesses 
        with the goal of providing information 
        on regional workforce demand and 
        supply.  The survey results must be 
        organized and distributed as follows: 
        (1) information organized in the form 
        of a development information sheet to 
        be used in industrial recruiting; 
        (2) a formal report, similar to those 
        produced by the School of Business and 
        Economics previous surveys; 
        (3) appropriate oral presentations to a 
        reasonable number of interested 
        parties; 
        (4) a Web page, usable by economic 
        developers and prospective industries, 
        summarizing the data; and 
        (5) continuous updates to be presented 
        to the legislature. 
        An advisory committee may be appointed 
        to review and aid in the survey effort. 
        Subd. 8.  Rehabilitation Services     21,818,000     21,758,000 
                      Summary by Fund
        General              14,813,000    14,813,000
        Workforce Development
        Fund                  7,005,000     6,945,000
        $11,737,000 the first year and 
        $11,737,000 the second year are for 
        extended employment services for 
        persons with severe disabilities or 
        related conditions under Minnesota 
        Statutes, section 268A.15.  Of this 
        amount, $6,920,000 the first year and 
        $6,920,000 the second year are from the 
        workforce development fund.  
        $1,325,000 the first year and 
        $1,325,000 the second year are for 
        grants to fund the eight centers for 
        independent living.  The base funding 
        in the fiscal year 2006-2007 biennium 
        is $1,690,000 each year.  Money not 
        expended in the first year is available 
        in the second year. 
        $150,000 the first year and $150,000 
        the second year are for grants to the 
        Minnesota employment center for people 
        who are deaf or hard-of-hearing.  Money 
        not expended in the first year is 
        available in the second year. 
        $1,000,000 the first year and 
        $1,000,000 the second year are for 
        grants for programs that provide 
        employment support services to persons 
        with mental illness under Minnesota 
        Statutes, sections 268A.13 and 
        268A.14.  Up to $70,000 each year may 
        be used for administrative and salary 
        expenses. 
        $60,000 the first year is a onetime 
        appropriation from the workforce 
        development fund for education for 
        employers to support HIV/AIDS general 
        education and awareness and to improve 
        capacities to manage HIV/AIDS in the 
        workplace.  The commissioner may 
        contract with a community-based 
        organization for education and legal 
        and technical assistance for employers 
        and their employees.  This 
        appropriation is available until June 
        30, 2005. 
        Subd. 9.  State Services for
        the Blind                              4,448,000      4,448,000 
        The base funding restored by this 
        subdivision is intended to be used to 
        provide services to blind persons, and 
        that restored funding should be used to 
        hire staff that provide direct 
        services, including accessible 
        materials from the communication 
        center, to blind persons. 
        Sec. 3.  MINNESOTA TECHNOLOGY, INC.    3,000,000        -0-     
        $3,000,000 the first year is for 
        transfer from the general fund to the 
        Minnesota Technology, Inc. fund.  This 
        is a onetime appropriation and no base 
        funding is provided for any future year.
        Sec. 4.  HOUSING FINANCE AGENCY
        Subdivision 1.  Total
        Appropriation                         35,385,000     34,885,000
        The amounts that may be spent from this 
        appropriation for certain programs are 
        specified in the following subdivisions.
        This appropriation is for transfer to 
        the housing development fund for the 
        programs specified.  Except as 
        otherwise indicated, this transfer is 
        part of the agency's permanent budget 
        base. 
        Subd. 2.  Roseau Flood Assistance 
        $500,000 the first year is for a 
        onetime grant for the city of Roseau to 
        buy out flood damaged residential 
        properties as provided below.  The 
        agency is authorized to provide 
        assistance for the city of Roseau to 
        acquire properties within the area 
        included in DR-1419 that meet the 
        following criteria: 
        (1) the owner agrees to voluntarily 
        sell the property; 
        (2) the property to be acquired was the 
        principal residence of the owner prior 
        to the flooding described in DR-1419; 
        and 
        (3) the cost of restoring the property 
        to its predamage condition would equal 
        or exceed 50 percent of the market 
        value of the structure before the 
        damage occurred, or the property has 
        been declared uninhabitable by a state 
        or local official in accordance with 
        current codes or ordinances. 
        Property owners may receive assistance 
        from the city in amounts up to the 
        preflood fair market value of their 
        property.  The city must reduce the 
        assistance provided to a property owner 
        by any duplication of benefits from 
        other sources.  If the property owner 
        is selling the structure which served 
        as the principal residence but not the 
        real property on which the structure is 
        located, the assistance must be reduced 
        by the preflood fair market value of 
        the real property.  If the city sells 
        the real property it has acquired with 
        the assistance provided under this 
        subdivision, it will repay to the 
        agency any funds obtained from the sale 
        of the real property.  
        Subd. 3.  Affordable Rental Investment Fund
        $9,273,000 the first year and 
        $9,273,000 the second year are for the 
        affordable rental investment fund 
        program under Minnesota Statutes, 
        section 462A.21, subdivision 8b. 
        This appropriation is to finance the 
        acquisition, rehabilitation, and debt 
        restructuring of federally assisted 
        rental property and for making equity 
        take-out loans under Minnesota 
        Statutes, section 462A.05, subdivision 
        39.  The owner of the federally 
        assisted rental property must agree to 
        participate in the applicable federally 
        assisted housing program and to extend 
        any existing low-income affordability 
        restrictions on the housing for the 
        maximum term permitted.  The owner must 
        also enter into an agreement that gives 
        local units of government, housing and 
        redevelopment authorities, and 
        nonprofit housing organizations the 
        right of first refusal if the rental 
        property is offered for sale.  Priority 
        must be given among comparable 
        properties to properties with the 
        longest remaining term under an 
        agreement for federal rental 
        assistance.  Priority must also be 
        given among comparable rental housing 
        developments to developments that are 
        or will be owned by local government 
        units, a housing and redevelopment 
        authority, or a nonprofit housing 
        organization. 
        Subd. 4.  Family Homeless Prevention
        $3,715,000 the first year and 
        $3,715,000 the second year are for 
        family homeless prevention and 
        assistance programs under Minnesota 
        Statutes, section 462A.204.  Any 
        balance in the first year does not 
        cancel but is available in the second 
        year.  
        Subd. 5.  Challenge Program 
        $9,622,000 the first year and 
        $9,622,000 the second year are for the 
        economic development and housing 
        challenge program under Minnesota 
        Statutes, section 462A.33. 
        Subd. 6.  Rental Assistance for Mentally Ill 
        $1,638,000 the first year and 
        $1,638,000 the second year are for a 
        rental housing assistance program for 
        persons with a mental illness or 
        families with an adult member with a 
        mental illness under Minnesota 
        Statutes, section 462A.2097.  The 
        agency must not reduce the funding 
        under this subdivision. 
        Subd. 7.  Home Ownership Education, 
        Counseling, and Training
        $770,000 the first year and $770,000 
        the second year are for the home 
        ownership education, counseling, and 
        training program under Minnesota 
        Statutes, section 462A.209. 
        Subd. 8.  Housing Trust Fund
        $4,305,000 the first year and 
        $4,305,000 the second year are for the 
        housing trust fund to be deposited in 
        the housing trust fund account created 
        under Minnesota Statutes, section 
        462A.201, and used for the purposes 
        provided in that section.  
        Subd. 9.  Urban Indian Housing Program 
        $180,000 the first year and $180,000 
        the second year are for the urban 
        Indian housing program under Minnesota 
        Statutes, section 462A.07, subdivision 
        15.  
        Subd. 10.  Tribal Indian Housing Program
        $1,105,000 the first year and 
        $1,105,000 the second year are for the 
        tribal Indian housing program under 
        Minnesota Statutes, section 462A.07, 
        subdivision 14.  
        Subd. 11.  Capacity Building Grants 
        $305,000 the first year and $305,000 
        the second year are for nonprofit 
        capacity building grants under 
        Minnesota Statutes, section 462A.21, 
        subdivision 3b.  
        Subd. 12.  Housing Rehabilitation
        and Accessibility
        $3,972,000 the first year and 
        $3,972,000 the second year are for the 
        housing rehabilitation and 
        accessibility program under Minnesota 
        Statutes, section 462A.05, subdivisions 
        14a and 15a. 
        Subd. 13.  Home Ownership
        Assistance Fund
        The budget base for the home ownership 
        assistance fund shall be $885,000 in 
        fiscal year 2006 and $885,000 in fiscal 
        year 2007. 
        Sec. 5.  LABOR AND INDUSTRY                                     
        Subdivision 1.  Total           
        Appropriation                         23,152,000     22,561,000
                      Summary by Fund
        General               2,905,000     2,839,000
        Workers'     
        Compensation         19,797,000    19,272,000
        Workforce Development
        Fund                    450,000       450,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Workers' Compensation 
            10,566,000     10,346,000 
        This appropriation is from the workers' 
        compensation fund. 
        $125,000 the first year and $125,000 
        the second year are for grants to the 
        Vinland Center for rehabilitation 
        service. 
        Subd. 3.  Workplace Services
            6,994,000       6,928,000
                      Summary by Fund
        General               2,905,000     2,839,000
        Workers'
        Compensation          3,639,000     3,639,000
        Workforce Development
        Fund                    450,000       450,000 
        $345,000 the first year and $345,000 
        the second year are for boiler 
        inspections under Minnesota Statutes, 
        section 183.38, subdivision 1.  This is 
        a onetime appropriation and is not 
        added to the department's base. 
        $350,000 each year is from the 
        workforce development fund for the 
        apprenticeship program under Minnesota 
        Statutes, chapter 178. 
        $100,000 the first year and $100,000 
        the second year are for labor education 
        and advancement program grants.  This 
        appropriation is from the workforce 
        development fund. 
        Subd. 4.  General Support 
             5,592,000      5,287,000
        This appropriation is from the workers' 
        compensation fund. 
        Sec. 6.  BUREAU OF MEDIATION SERVICES 
        Subdivision 1.  Total
        Appropriation                          1,773,000      1,773,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Mediation Services 
             1,673,000      1,673,000
        Subd. 3.  Labor Management 
        Cooperation Grants
               100,000        100,000
        $100,000 each year is for grants to 
        area labor-management committees.  
        Grants may be awarded for a 12-month 
        period beginning July 1 of each year.  
        Any unencumbered balance remaining at 
        the end of the first year does not 
        cancel but is available for the second 
        year. 
        Sec. 7.  WORKERS' COMPENSATION
        COURT OF APPEALS                       1,618,000      1,618,000
        This appropriation is from the workers' 
        compensation fund. 
        Sec. 8.  MINNESOTA HISTORICAL 
        SOCIETY 
        Subdivision 1.  Total       
        Appropriation                         22,407,000     22,280,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        The historical society shall make its 
        best possible efforts, including the 
        use of volunteers, to avoid closing 
        historic sites or substantially 
        limiting public access to them.  Before 
        closing any site, the society must 
        consult with, and fully consider 
        proposals from, interested community 
        groups or individuals who are willing 
        to provide financial or in-kind support 
        for site operations. 
        Subd. 2.  Education and     
        Outreach                              12,381,000     12,381,000 
        Subd. 3.  Preservation and  
        Access                                 9,772,000      9,772,000 
        Subd. 4.  Fiscal Agent                   254,000        127,000 
        (a) Minnesota International Center 
                43,000         42,000 
        (b) Minnesota Air National   
        Guard Museum 
                16,000        -0-     
        (c) Minnesota Military Museum 
                67,000        -0-     
        (d) Farmamerica              
               128,000         85,000 
        Notwithstanding any other law, this 
        appropriation may be used for 
        operations. 
        (e) Balances Forward         
        Any unencumbered balance remaining in 
        this subdivision the first year does 
        not cancel but is available for the 
        second year of the biennium. 
        Subd. 5.  Fund Transfer  
        The society may reallocate funds 
        appropriated in and between 
        subdivisions 2 and 3 for any program 
        purposes. 
        Sec. 9.  BOARD OF THE      
        ARTS                                   
        Subdivision 1.  Total 
        Appropriation                          8,593,000      8,593,000 
        If the appropriation for either year is 
        insufficient, the appropriation for the 
        other year is available. 
        Subd. 2.  Operations and Services        404,000        404,000 
        Subd. 3.  Grants Programs              5,767,000      5,767,000 
        Subd. 4.  Regional Arts     
        Councils                               2,422,000      2,422,000 
        Sec. 10.  CHILDREN, FAMILIES 
        AND LEARNING 
        Subdivision 1.  Total
        Appropriation                          3,338,000      3,338,000
        Subd. 2.  Emergency Services
               350,000        350,000
        For emergency services grants under 
        Laws 1997, chapter 162, article 3, 
        section 7.  Any balance in the first 
        year does not cancel but is available 
        in the second year. 
        Subd. 3.  Transitional Housing         2,988,000      2,988,000 
        $2,988,000 the first year and 
        $2,988,000 the second year are for 
        transitional housing programs according 
        to Minnesota Statutes, section 
        119A.43.  Any balance in the first year 
        does not cancel but is available in the 
        second year.  
           Sec. 11.  [CANCELLATIONS AND TRANSFERS.] 
           (a) The unexpended balance as of July 1, 2003, from all 
        appropriations to the capital access program established under 
        Minnesota Statutes, section 116J.8761, is canceled to the 
        general fund. 
           (b) The unexpended balance as of July 1, 2003, in the 
        nongame wildlife tourism program in the department of trade and 
        economic development is canceled to the general fund. 
           (c) Of the appropriation made to the department of trade 
        and economic development in Laws 1997, chapter 200, article 1, 
        section 2, subdivision 2, $361,000 is canceled to the general 
        fund. 
           (d) Of the appropriation made to the public facilities 
        authority in Laws 2000, chapter 492, article 1, section 22, 
        subdivision 3, $700,000 is canceled to the general fund. 
           (e) After July 1, 2003, but before September 30, 2003, the 
        commissioner of finance shall transfer $800,000 of the 
        unexpended balance in the tourism loan account established under 
        Minnesota Statutes, section 116J.617, subdivision 5, to the 
        general fund. 
           (f) Any repayments of principal and any interest earned on 
        money previously in the tourism loan account shall be deposited 
        in the general fund. 
           (g) On or before June 30 of each fiscal year, the 
        commissioner of finance shall transfer $550,000 from the 
        workforce development fund to the general fund. 
           Sec. 12.  Laws 2002, chapter 220, article 13, section 9, 
        subdivision 2, as amended by Laws 2002, chapter 374, article 8, 
        section 6, is amended to read: 
           Subd. 2.  [SPECIAL COMPENSATION FUND.] After June 1, 2003, 
        but no later than June 30, 2003, the commissioner of finance 
        shall transfer $250,000,000 $265,000,000 in assets of the excess 
        surplus account of the special compensation fund created under 
        Minnesota Statutes, section 176.129, to the general fund. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 13.  Laws 2002, chapter 331, section 19, is amended to 
        read:  
           Sec. 19.  [EFFECTIVE DATE.] 
           Sections 16 and 17 are effective July 1, 2003 2004. 
           Sec. 14.  [FEDERAL FUND APPROVAL.] 
           Requests to spend federal grants and aids as shown in the 
        biennial budget document and its supplements for the departments 
        of trade and economic development, economic security, and labor 
        and industry; the Minnesota housing finance agency; and 
        Minnesota Technology, Inc., for which further review was 
        requested under Minnesota Statutes, section 3.3005, subdivision 
        2a, in January or February 2003, are approved and the amounts 
        shown in the budget documents are appropriated for the purpose 
        indicated in the request. 
           Sec. 15.  [REPEALER.] 
           Minnesota Statutes 2002, section 138.91, is repealed. 

                                   ARTICLE 11 
                        DEPARTMENT OF LABOR AND INDUSTRY  
                               POLICY PROVISIONS 
           Section 1.  Minnesota Statutes 2002, section 175.16, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHED.] The department of labor and 
        industry shall consist of the following divisions:  division of 
        workers' compensation, division of boiler inspection, division 
        of occupational safety and health, division of statistics, 
        division of steamfitting standards, division of voluntary 
        apprenticeship, division of labor standards and apprenticeship, 
        and such other divisions as the commissioner of the department 
        of labor and industry may deem necessary and establish.  Each 
        division of the department and persons in charge thereof shall 
        be subject to the supervision of the commissioner of the 
        department of labor and industry and, in addition to such duties 
        as are or may be imposed on them by statute, shall perform such 
        other duties as may be assigned to them by said the commissioner.
        Notwithstanding any other law to the contrary, the commissioner 
        is the administrator and supervisor of all of the department's 
        dispute resolution functions and personnel and may delegate 
        authority to compensation judges and others to make 
        determinations under sections 176.106, 176.238, and 176.239 and 
        to approve settlement of claims under section 176.521. 
           Sec. 2.  Minnesota Statutes 2002, section 177.26, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CREATION.] The division of labor standards 
        and apprenticeship in the department of labor and industry is 
        supervised and controlled by the commissioner of labor and 
        industry.  
           Sec. 3.  Minnesota Statutes 2002, section 177.26, 
        subdivision 2, is amended to read: 
           Subd. 2.  [POWERS AND DUTIES.] The powers, duties, and 
        functions given to the department's division of women and 
        children by this chapter, and other applicable laws relating to 
        wages, hours, and working conditions, are transferred to the 
        division of labor standards.  The division of labor standards 
        and apprenticeship shall administer sections 177.21 to 177.35 
        and chapter chapters 177, 178, 181, 181A, and 184.  The division 
        shall perform duties under sections 181.9435 and 181.9436. 
           Sec. 4.  Minnesota Statutes 2002, section 178.01, is 
        amended to read: 
           178.01 [PURPOSES.] 
           The purposes of this chapter are:  to open to young people 
        regardless of race, sex, creed, color or national origin, the 
        opportunity to obtain training that will equip them for 
        profitable employment and citizenship; to establish as a means 
        to this end, a program of voluntary apprenticeship under 
        approved apprentice agreements providing facilities for their 
        training and guidance in the arts, skills, and crafts of 
        industry and trade, with concurrent, supplementary instruction 
        in related subjects; to promote employment opportunities under 
        conditions providing adequate training and reasonable earnings; 
        to relate the supply of skilled workers to employment demands; 
        to establish standards for apprentice training; to establish an 
        apprenticeship advisory council and apprenticeship committees to 
        assist in effectuating the purposes of this chapter; to provide 
        for a division of voluntary labor standards and apprenticeship 
        within the department of labor and industry; to provide for 
        reports to the legislature regarding the status of apprentice 
        training in the state; to establish a procedure for the 
        determination of apprentice agreement controversies; and to 
        accomplish related ends.  
           Sec. 5.  Minnesota Statutes 2002, section 178.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT OF DIVISION.] There is 
        hereby established a division of voluntary labor standards and 
        apprenticeship in the department of labor and industry.  This 
        division shall be administered by a director, and be under the 
        supervision of the commissioner of labor and industry, 
        hereinafter referred to as the commissioner.  
           Sec. 6.  Minnesota Statutes 2002, section 178.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DIRECTOR OF VOLUNTARY LABOR STANDARDS AND 
        APPRENTICESHIP.] The commissioner shall appoint a director of 
        the division of voluntary labor standards and apprenticeship, 
        hereinafter referred to as the director, and may appoint and 
        employ such clerical, technical, and professional help as is 
        necessary to accomplish the purposes of this chapter.  The 
        director and division staff shall be appointed and shall serve 
        in the classified service pursuant to civil service law and 
        rules.  
           Sec. 7.  [178.12] [REGISTRATION FEE.] 
           The apprenticeship registration account is established in 
        the special revenue fund of the state treasury.  An annual 
        registration fee will be charged to each sponsor for each 
        apprentice registered in the program.  The fee is established at 
        $30 per apprentice.  Subsequent adjustments to this fee will be 
        made pursuant to Minnesota Statutes, sections 16A.1283 and 
        16A.1285, subdivision 2.  The fees collected and any interest 
        earned are appropriated to the commissioner for purposes of this 
        chapter. 
           Sec. 8.  Minnesota Statutes 2002, section 181.9435, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [INVESTIGATION.] The division of labor 
        standards and apprenticeship shall receive complaints of 
        employees against employers relating to sections 181.940 to 
        181.9436 and investigate informally whether an employer may be 
        in violation of sections 181.940 to 181.9436.  The division 
        shall attempt to resolve employee complaints by informing 
        employees and employers of the provisions of the law and 
        directing employers to comply with the law. 
           Sec. 9.  Minnesota Statutes 2002, section 181.9436, is 
        amended to read: 
           181.9436 [POSTING OF LAW.] 
           The division of labor standards and apprenticeship shall 
        develop, with the assistance of interested business and 
        community organizations, an educational poster stating 
        employees' rights under sections 181.940 to 181.9436.  The 
        department shall make the poster available, upon request, to 
        employers for posting on the employer's premises. 
           Sec. 10.  Minnesota Statutes 2002, section 182.667, 
        subdivision 2, is amended to read: 
           Subd. 2.  Any employer who willfully or repeatedly violates 
        the requirements of section 182.653, any safety and health 
        standard promulgated under this chapter, any existing rule 
        promulgated by the department, may be punished by a fine of not 
        more than $20,000 $70,000 or by imprisonment for not more than 
        six months or by both; except, that if the conviction is for a 
        violation committed after a first conviction of such person, 
        punishment shall be a fine of not more than $35,000 $100,000 or 
        by imprisonment for not more than one year, or by both. 
           Sec. 11.  [BOILER INSPECTION AND LICENSE FEE SURCHARGE.] 
           The commissioner of labor and industry shall impose a 
        surcharge of $5 on each of the fees authorized under Minnesota 
        Statutes, section 183.545, subdivisions 2, 3, and 4, for the 
        period starting July 1, 2003, and ending June 30, 2005. 
           Sec. 12.  [WORKERS' COMPENSATION WORKING GROUP.] 
           The commissioner of labor and industry shall convene a 
        working group to study issues related to the medical cost 
        drivers of the workers' compensation program.  The group shall 
        report its findings, along with any recommendations to the 
        workers' compensation advisory council before January 9, 2004.  
        The purpose of the study is to examine the medical cost drivers 
        of the workers' compensation program in order to ensure costs 
        are not excessive, while at the same time ensuring that injured 
        workers have adequate access to health care providers under the 
        workers' compensation system.  The working group shall consist 
        of an equal number of provider, employer, and labor 
        representatives.  The study shall examine: 
           (1) the growth in medical costs in the workers' 
        compensation program compared to the growth in overall medical 
        costs; and 
           (2) the costs that are unique to providing medical services 
        to injured workers under the workers' compensation program. 
           The commissioner shall convene the study group no later 
        than September 1, 2003.  By February 15, 2004, the workers' 
        compensation advisory council must report to the chairs of the 
        legislative committees with jurisdiction over workers' 
        compensation regarding the recommendations of the working group, 
        including a description of action taken on the recommendations. 

                                   ARTICLE 12
                  DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT 
                          POLICY PROVISIONS - PART ONE 
           Section 1.  Minnesota Statutes 2002, section 248.10, is 
        amended to read: 
           248.10 [REHABILITATION COUNCIL FOR THE BLIND.] 
           (a) The commissioner shall establish a rehabilitation 
        council for the blind consistent with the federal Rehabilitation 
        Act of 1973, Public Law Number 93-112, as amended.  Council 
        members shall be compensated as provided in section 15.059, 
        subdivision 3.  The council shall advise the commissioner about 
        programs of the division of state services for the blind. 
           (b) Notwithstanding section 13D.01, the rehabilitation 
        council for the blind may conduct a meeting of its members by 
        telephone or other electronic means so long as the following 
        conditions are met: 
           (1) all members of the council participating in the 
        meeting, wherever their physical location, can hear one another 
        and can hear all discussion and testimony; 
           (2) members of the public present at the regular meeting 
        location of the council can hear all discussion and testimony 
        and all votes of members of the council; 
           (3) at least one member of the council is physically 
        present at the regular meeting location; and 
           (4) all votes are conducted by roll call, so each member's 
        vote on each issue can be identified and recorded. 
           (c) Each member of the council participating in a meeting 
        by telephone or other electronic means is considered present at 
        the meeting for purposes of determining a quorum and 
        participating in all proceedings. 
           (d) If telephone or another electronic means is used to 
        conduct a meeting, the council to the extent practical, shall 
        allow a person to monitor the meeting electronically from a 
        remote location.  The council may require the person making such 
        a connection to pay for documented marginal costs that the 
        council incurs as a result of the additional connection.  
           (e) If telephone or another electronic means is used to 
        conduct a regular, special, or emergency meeting, the council 
        shall provide notice of the regular meeting location, of the 
        fact that some members may participate by electronic means, and 
        of the provisions of paragraph (d).  The timing and method of 
        providing notice is governed by section 13D.04. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 2.  Minnesota Statutes 2002, section 268A.02, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [ELECTRONIC OR TELEPHONIC MEETINGS.] (a) 
        Notwithstanding section 13D.01, the state rehabilitation council 
        and the statewide independent living council may conduct a 
        meeting of its members by telephone or other electronic means so 
        long as the following conditions are met: 
           (1) all members of the council participating in the 
        meeting, wherever their physical location, can hear one another 
        and can hear all discussion and testimony; 
           (2) members of the public present at the regular meeting 
        location of the council can hear all discussion and testimony 
        and all votes of members of the council; 
           (3) at least one member of the council is physically 
        present at the regular meeting location; and 
           (4) all votes are conducted by roll call, so each member's 
        vote on each issue can be identified and recorded.  
           (b) Each member of the council participating in a meeting 
        by telephone or other electronic means is considered present at 
        the meeting for purposes of determining a quorum and 
        participating in all proceedings. 
           (c) If telephone or other electronic means is used to 
        conduct a meeting, the council, to the extent practical, shall 
        allow a person to monitor the meeting electronically from a 
        remote location.  The council may require the person making such 
        a connection to pay for documented marginal costs that the 
        council incurs as a result of the additional connection. 
           (d) If telephone or other electronic means is used to 
        conduct a regular, special, or emergency meeting, the council 
        shall provide notice of the regular meeting location, of the 
        fact that some members may participate by telephone or other 
        electronic means, and of the provisions of paragraph (c).  The 
        timing and method of providing notice is governed by section 
        13D.04. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 3.  Minnesota Statutes 2002, section 517.08, 
        subdivision 1b, is amended to read: 
           Subd. 1b.  [TERM OF LICENSE; FEE; PREMARITAL EDUCATION.] 
        (a) The court administrator shall examine upon oath the party 
        applying for a license relative to the legality of the 
        contemplated marriage.  If at the expiration of a five-day 
        period, on being satisfied that there is no legal impediment to 
        it, including the restriction contained in section 259.13, the 
        court administrator shall issue the license, containing the full 
        names of the parties before and after marriage, and county and 
        state of residence, with the district court seal attached, and 
        make a record of the date of issuance.  The license shall be 
        valid for a period of six months.  In case of emergency or 
        extraordinary circumstances, a judge of the district court of 
        the county in which the application is made, may authorize the 
        license to be issued at any time before the expiration of the 
        five days.  Except as provided in paragraph (b), the court 
        administrator shall collect from the applicant a fee of $70 $80 
        for administering the oath, issuing, recording, and filing all 
        papers required, and preparing and transmitting to the state 
        registrar of vital statistics the reports of marriage required 
        by this section.  If the license should not be used within the 
        period of six months due to illness or other extenuating 
        circumstances, it may be surrendered to the court administrator 
        for cancellation, and in that case a new license shall issue 
        upon request of the parties of the original license without 
        fee.  A court administrator who knowingly issues or signs a 
        marriage license in any manner other than as provided in this 
        section shall pay to the parties aggrieved an amount not to 
        exceed $1,000. 
           (b) The marriage license fee for parties who have completed 
        at least 12 hours of premarital education is $20.  In order to 
        qualify for the reduced fee, the parties must submit a signed 
        and dated statement from the person who provided the premarital 
        education confirming that it was received.  The premarital 
        education must be provided by a licensed or ordained minister or 
        the minister's designee, a person authorized to solemnize 
        marriages under section 517.18, or a person authorized to 
        practice marriage and family therapy under section 148B.33.  The 
        education must include the use of a premarital inventory and the 
        teaching of communication and conflict management skills.  
           (c) The statement from the person who provided the 
        premarital education under paragraph (b) must be in the 
        following form:  
           "I, (name of educator), confirm that (names of both 
        parties) received at least 12 hours of premarital education that 
        included the use of a premarital inventory and the teaching of 
        communication and conflict management skills.  I am a licensed 
        or ordained minister, a person authorized to solemnize marriages 
        under Minnesota Statutes, section 517.18, or a person licensed 
        to practice marriage and family therapy under Minnesota 
        Statutes, section 148B.33." 
           The names of the parties in the educator's statement must 
        be identical to the legal names of the parties as they appear in 
        the marriage license application.  Notwithstanding section 
        138.17, the educator's statement must be retained for seven 
        years, after which time it may be destroyed.  
           (d) If section 259.13 applies to the request for a marriage 
        license, the court administrator shall grant the marriage 
        license without the requested name change.  Alternatively, the 
        court administrator may delay the granting of the marriage 
        license until the party with the conviction: 
           (1) certifies under oath that 30 days have passed since 
        service of the notice for a name change upon the prosecuting 
        authority and, if applicable, the attorney general and no 
        objection has been filed under section 259.13; or 
           (2) provides a certified copy of the court order granting 
        it.  The parties seeking the marriage license shall have the 
        right to choose to have the license granted without the name 
        change or to delay its granting pending further action on the 
        name change request. 
           Sec. 4.  Minnesota Statutes 2002, section 517.08, 
        subdivision 1c, is amended to read: 
           Subd. 1c.  [DISPOSITION OF LICENSE FEE.] (a) Of the 
        marriage license fee collected pursuant to subdivision 1b, 
        paragraph (a), $15 must be retained by the county.  The court 
        administrator must pay $55 $65 to the state treasurer to be 
        deposited as follows: 
           (1) $50 in the general fund; 
           (2) $3 in the special revenue fund to be appropriated to 
        the commissioner of children, families, and learning for 
        parenting time centers under section 119A.37; and 
           (3) $2 in the special revenue fund to be appropriated to 
        the commissioner of health for developing and implementing the 
        MN ENABL program under section 145.9255; and 
           (4) $10 in the special revenue fund to be appropriated to 
        the commissioner of economic security for the displaced 
        homemaker program under section 268.96. 
           (b) Of the $20 fee under subdivision 1b, paragraph (b), $15 
        must be retained by the county.  The state court administrator 
        must pay $5 to the state treasurer to be distributed as provided 
        in paragraph (a), clauses (2) and (3). 
           Sec. 5.  Laws 2001, First Special Session chapter 4, 
        article 2, section 31, is amended to read: 
           Sec. 31.  [WORKFORCE ENHANCEMENT FEE.] 
           Subdivision 1.  [FEE.] Notwithstanding Minnesota Statutes, 
        section 268.022, effective January 1, 2002, the special 
        assessment under that section on taxable wages as defined in 
        Minnesota Statutes, section 268.035, subdivision 24, is 
        suspended until December 31, 2005.  Effective January 1, 2002, 
        there shall be assessed, in addition to unemployment taxes due 
        under Minnesota Statutes, section 268.051, a workforce 
        enhancement fee of .09 .12 percent on taxable wages.  If the 
        commissioner of trade and economic development determines that 
        the need for services under the dislocated worker program 
        substantially exceeds the resources that will be available for 
        that program, the commissioner may increase the fee to no more 
        than .14 percent of taxable wages.  This fee shall be due and be 
        paid on the same schedule and in the same manner as unemployment 
        taxes under Minnesota Statutes, section 268.051.  Any amount 
        past due under this section shall be subject to the same 
        interest and collection provisions as unemployment taxes.  This 
        fee shall expire on December 31, 2005. 
           Subd. 2.  [USE OF FUNDS COLLECTED.] An amount equal to .07 
        percent on taxable wages shall be deposited in the workforce 
        development fund provided for under Minnesota Statutes, section 
        268.022, subdivision 2.  An amount equal to .02 percent on 
        taxable wages, less reimbursement for collection costs of the 
        total amount of the fee, shall be deposited in the unemployment 
        insurance technology initiative account provided for in section 
        32.  The remaining funds collected under this section shall be 
        deposited in the workforce development fund provided for under 
        Minnesota Statutes, section 268.022, subdivision 2. 
           [EFFECTIVE DATE.] This section is effective January 1, 2004.

                                   ARTICLE 13
                        DEPARTMENT OF TRADE AND ECONOMIC
                    DEVELOPMENT POLICY PROVISIONS - PART TWO 
           Section 1.  Minnesota Statutes 2002, section 17.03, 
        subdivision 6, is amended to read: 
           Subd. 6.  [COOPERATION WITH MINNESOTA TRADE DIVISION 
        DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT.] The commissioner 
        of agriculture, and the commissioner of trade and economic 
        development, and the director of the Minnesota trade division 
        shall cooperate with each other to promote the beneficial 
        agricultural interests of the state.  The commissioner of trade 
        and economic development and the director of the Minnesota trade 
        division have agriculture has primary responsibility for 
        promoting state agricultural interests to international 
        markets.  The commissioner of trade and economic development and 
        the director of the Minnesota trade division are agriculture is 
        also responsible for the promotion of national trade programs 
        related to international marketing.  The commissioner of 
        agriculture has primary responsibility for promoting the 
        agriculture interests of producers, promoting state agricultural 
        markets, and promoting agricultural interests of the state in 
        cooperative production and marketing efforts with other states 
        and the United States Department of Agriculture.  The 
        commissioner of agriculture is also responsible for promoting 
        the national and international marketing of state agricultural 
        products. 
           Sec. 2.  Minnesota Statutes 2002, section 17.101, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEPARTMENTAL DUTIES.] For the purposes of 
        expanding, improving, and developing production and marketing of 
        products of Minnesota agriculture, the commissioner shall 
        encourage and promote the production and marketing of these 
        products by means of:  
           (a) advertising Minnesota agricultural products; 
           (b) assisting state agricultural commodity organizations; 
           (c) developing methods to increase processing and marketing 
        of agricultural commodities including commodities not being 
        produced in Minnesota on a commercial scale, but which may have 
        economic potential in national and international markets; 
           (d) investigating and identifying new marketing technology 
        and methods to enhance the competitive position of Minnesota 
        agricultural products; 
           (e) evaluating livestock marketing opportunities; 
           (f) assessing and developing national and international 
        markets for Minnesota agricultural products; 
           (g) studying the conversion of raw agricultural products to 
        manufactured products including ethanol; 
           (h) hosting the visits of foreign trade teams to Minnesota 
        and defraying the teams' expenses; 
           (i) assisting Minnesota agricultural businesses desiring to 
        sell their products; 
           (j) conducting research to eliminate or reduce specific 
        production or technological barriers to market development and 
        trade; and 
           (k) other activities the commissioner deems appropriate to 
        promote Minnesota agricultural products, provided that the 
        activities do not duplicate programs or services provided by the 
        Minnesota trade division or the Minnesota world trade center. 
           Sec. 3.  Minnesota Statutes 2002, section 41A.036, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SMALL BUSINESS DEVELOPMENT LOANS; PREFERENCES.] 
        The following eligible small businesses have preference among 
        all business applicants for small business development loans: 
           (1) businesses located in rural areas of the state that are 
        experiencing the most severe unemployment rates in the state; 
           (2) businesses that are likely to expand and provide 
        additional permanent employment in rural areas of the state, or 
        enhance the quality of existing jobs in those areas; 
           (3) businesses located in border communities that 
        experience a competitive disadvantage due to location; 
           (4) businesses that have been unable to obtain traditional 
        financial assistance due to a disadvantageous location, minority 
        ownership, or other factors rather than due to the business 
        having been considered a poor financial risk; 
           (5) businesses that utilize state resources and reduce 
        state dependence on outside resources, and that produce products 
        or services consistent with the long-term social and economic 
        needs of the state; and 
           (6) businesses located in designated enterprise zones, as 
        described in section 469.168. 
           Sec. 4.  Minnesota Statutes 2002, section 115C.08, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EXPENDITURES.] (a) Money in the fund may only be 
        spent: 
           (1) to administer the petroleum tank release cleanup 
        program established in this chapter; 
           (2) for agency administrative costs under sections 116.46 
        to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
        action taken by the agency under section 115C.03, including 
        investigations; 
           (3) for costs of recovering expenses of corrective actions 
        under section 115C.04; 
           (4) for training, certification, and rulemaking under 
        sections 116.46 to 116.50; 
           (5) for agency administrative costs of enforcing rules 
        governing the construction, installation, operation, and closure 
        of aboveground and underground petroleum storage tanks; 
           (6) for reimbursement of the environmental response, 
        compensation, and compliance account under subdivision 5 and 
        section 115B.26, subdivision 4; 
           (7) for administrative and staff costs as set by the board 
        to administer the petroleum tank release program established in 
        this chapter; 
           (8) for corrective action performance audits under section 
        115C.093; and 
           (9) for contamination cleanup grants, as provided in 
        paragraph (c). 
           (b) Except as provided in paragraph (c), money in the fund 
        is appropriated to the board to make reimbursements or payments 
        under this section. 
           (c) $6,200,000 is annually appropriated from the fund to 
        the commissioner of trade and economic development for 
        contamination cleanup grants under section 116J.554.  Of this 
        amount, the commissioner may spend up to $120,000 $180,000 
        annually for administration of the contamination cleanup grant 
        program.  The appropriation does not cancel and is available 
        until expended.  The appropriation shall not be withdrawn from 
        the fund nor the fund balance reduced until the funds are 
        requested by the commissioner of trade and economic 
        development.  The commissioner shall schedule requests for 
        withdrawals from the fund to minimize the necessity to impose 
        the fee authorized by subdivision 2.  Unless otherwise provided, 
        the appropriation in this paragraph may be used for: 
           (1) project costs at a qualifying site if a portion of the 
        cleanup costs are attributable to petroleum contamination; and 
           (2) the costs of performing contamination investigation if 
        there is a reasonable basis to suspect the contamination is 
        attributable to petroleum. 
           [EFFECTIVE DATE.] This section is effective June 30, 2003. 
           Sec. 5.  Minnesota Statutes 2002, section 116J.011, is 
        amended to read: 
           116J.011 [MISSION.] 
           The mission of the department of trade and economic 
        development is to employ all of the available state government 
        resources to facilitate an economic environment that produces 
        net new job growth in excess of the national average, to improve 
        the quality of existing jobs, and to increase nonresident and 
        resident tourism revenues.  It is part of the department's 
        mission that within the department's resources the commissioner 
        shall endeavor to: 
           (1) prevent the waste or unnecessary spending of public 
        money; 
           (2) use innovative fiscal and human resource practices to 
        manage the state's resources and operate the department as 
        efficiently as possible; 
           (3) coordinate the department's activities wherever 
        appropriate with the activities of other governmental agencies; 
           (4) use technology where appropriate to increase agency 
        productivity, improve customer service, increase public access 
        to information about government, and increase public 
        participation in the business of government; 
           (5) utilize constructive and cooperative labor-management 
        practices to the extent otherwise required by chapters 43A and 
        179A; 
           (6) report to the legislature on the performance of agency 
        operations and the accomplishment of agency goals in the 
        agency's biennial budget according to section 16A.10, 
        subdivision 1; and 
           (7) recommend to the legislature appropriate changes in law 
        necessary to carry out the mission and improve the performance 
        of the department. 
           Sec. 6.  Minnesota Statutes 2002, section 116J.411, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [JOB ENHANCEMENT.] "Job enhancement" means:  
           (1) an increase in wages, and an increase in the 
        responsibility or skill level of job duties; or 
           (2) the provision of additional training or education for 
        employees in existing jobs.  
           Sec. 7.  Minnesota Statutes 2002, section 116J.415, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ORGANIZATION.] The commissioner shall make 
        challenge grants to regional organizations, for the purpose of 
        providing financial assistance to encourage private investment, 
        to provide jobs or job enhancement for low-income persons, and 
        to promote economic development in the rural areas of the state. 
           Sec. 8.  Minnesota Statutes 2002, section 116J.415, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FUNDING REGIONS.] The commissioner shall divide 
        the state outside of the metropolitan area as defined in section 
        473.121, subdivision 2, into six regions.  A region's boundaries 
        must be coterminous with the boundaries of one or more of the 
        development regions established under section 462.385.  The 
        commissioner shall designate up to $1,000,000 for each region, 
        to be awarded over a period of three years allocate all funds 
        remaining in each regional subaccount of the rural 
        rehabilitation account, as established under section 166J.955, 
        to each respective regional organization.  The money designated 
        to each region must be used for revolving loans assistance 
        authorized in this section.  
           Sec. 9.  Minnesota Statutes 2002, section 116J.415, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REVOLVING LOAN FUND.] A regional organization 
        shall establish a commissioner certified revolving loan fund to 
        provide loans to new and expanding businesses in rural Minnesota 
        to promote economic development in rural Minnesota.  Eligible 
        business enterprises include technologically innovative 
        industries, value-added manufacturing, agriprocessing, 
        information industries, and agricultural marketing.  Loan 
        applications given preliminary approval by the organization must 
        be forwarded to the commissioner for final approval.  The amount 
        of state money allocated for each loan is appropriated from the 
        rural rehabilitation account established in section 116J.955 to 
        the organization's regional revolving loan fund when the 
        commissioner gives final approval for each loan.  The amount of 
        money appropriated from the rural rehabilitation account may not 
        exceed 50 percent for each loan.  The amount of nonpublic money 
        must equal at least 50 percent for each loan.  Funds may be used 
        to provide loans, loan guarantees, interest buy-downs, and other 
        forms of participation with private sources of financing, 
        provided that the financial assistance must be for a principal 
        amount that does not exceed one-half of the cost of the project 
        for which financing is sought. 
           Sec. 10.  Minnesota Statutes 2002, section 116J.415, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LOAN ASSISTANCE CRITERIA.] The following 
        criteria apply to loans made under Projects supported through 
        the challenge grant program must be used principally to benefit 
        low-income persons by:  
           (1) loans must be made to businesses that are not likely to 
        undertake a project for which loans are sought without 
        assistance from the challenge grant program; 
           (2) a loan must be used for a project designed principally 
        to benefit low-income persons through the creation of job or 
        business opportunities for them; 
           (3) the minimum loan is $5,000 and the maximum is $200,000; 
           (4) a loan may not exceed 50 percent of the total cost of 
        an individual project; 
           (5) a loan may not be used for a retail development 
        project; and 
           (6) a business applying for a loan, except a 
        microenterprise loan under subdivision 6, must be sponsored by a 
        resolution of the governing body of the local governmental unit 
        within whose jurisdiction the project is located. 
           (1) creating new jobs, job enhancement, or retaining 
        existing jobs; 
           (2) increasing the local tax base; 
           (3) demonstrating that investment of public dollars induces 
        private funds; 
           (4) providing higher wage levels to the community or adding 
        value to current workforce skills; 
           (5) retaining existing business; or 
           (6) attracting out-of-state business. 
           Sec. 11.  Minnesota Statutes 2002, section 116J.415, 
        subdivision 7, is amended to read: 
           Subd. 7.  [REVOLVING FUND ADMINISTRATION.] (a) The 
        commissioner shall establish a minimum interest rate for loans 
        to ensure that necessary management costs are covered.  
           (b) Loan Repayment amounts equal to one-half of the 
        principal and interest must be deposited in the rural 
        rehabilitation revolving fund for challenge grants to the region 
        from which the money was originally designated.  The remaining 
        amount of the loan repayment may must be deposited in the 
        regional revolving loan fund for further distribution by the 
        regional organization, consistent with the loan criteria 
        specified in subdivisions 4 and 5. 
           (c) The first $1,000,000 of revolving loans for each region 
        must be matched by nonstate sources.  The matching requirement 
        does not apply to loans made under paragraph (b). 
           (d) Administrative expenses of each organization may be 
        paid out of the interest earned on loans and on interest earned 
        on money invested by the state board of investment under section 
        116J.413, subdivision 2. 
           Sec. 12.  Minnesota Statutes 2002, section 116J.415, 
        subdivision 11, is amended to read: 
           Subd. 11.  [REPORTING REQUIREMENTS.] An organization that 
        receives a challenge grant shall: 
           (1) submit an annual report to the commissioner by February 
        15 of each August 30 for the preceding fiscal year that includes 
        a description of projects supported by the challenge grant 
        program, an account of loans made, written off, and fully paid 
        during the calendar year, the source and amount of money 
        collected and distributed by the challenge grant program 
        regional revolving fund, and the program's assets and 
        liabilities, and an explanation of administrative 
        expenses funds' cash balance and loans receivable; and 
           (2) provide for an independent annual audit to be performed 
        in accordance with generally accepted accounting practices and 
        auditing standards and submit a copy of each annual audit report 
        to the commissioner. 
           Sec. 13.  Minnesota Statutes 2002, section 116J.553, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REQUIRED CONTENT.] (a) The commissioner shall 
        prescribe and provide the application form.  The application 
        must include at least the following information: 
           (1) identification of the site; 
           (2) an approved response action plan for the site, 
        including the results of engineering and other tests showing the 
        nature and extent of the release or threatened release of 
        contaminants at the site; 
           (3) a detailed estimate, along with necessary supporting 
        evidence, of the total cleanup costs for the site; 
           (4) an appraisal of the current market value of the 
        property, separately taking into account the effect of the 
        contaminants on the market value, prepared by a qualified 
        independent appraiser licensed under chapter 82B using accepted 
        appraisal methodology or, the estimated market value of the 
        property for the latest year shown on the most recent valuation 
        notice used under section 273.121; 
           (5) an assessment of the development potential or likely 
        use of the site after completion of the response action plan, 
        including any specific commitments from third parties to 
        construct improvements on the site; 
           (6) the manner in which the municipality will meet the 
        local match requirement; and 
           (7) any additional information or material that the 
        commissioner prescribes. 
           (b) A response action plan is not required as a condition 
        to receive a grant under section 116J.554, subdivision 1, 
        paragraph (c). 
           Sec. 14.  Minnesota Statutes 2002, section 116J.554, 
        subdivision 2, is amended to read: 
           Subd. 2.  [QUALIFYING SITES.] A site qualifies for a grant 
        under this section, if the following criteria are met: 
           (1) the site is not scheduled for funding during the 
        current or next fiscal year under the Comprehensive 
        Environmental Response, Compensation, and Liability Act, United 
        States Code, title 42, section 9601, et seq. or under the 
        Environmental Response, and Liability Act under sections 115B.01 
        to 115B.24; 
           (2) the appraised value of the site after adjusting for the 
        effect on the value of the presence or possible presence of 
        contaminants using accepted appraisal methodology, or the 
        current market value of the site as issued under section 
        273.121, separately taking into account the effect of the 
        contaminants on the market value, (i) is less than 75 percent of 
        the estimated project costs for the site or (ii) is less than or 
        equal to the estimated cleanup costs for the site and the 
        cleanup costs equal or exceed $3 per square foot for the site; 
        and 
           (3) if the proposed cleanup is completed, it is expected 
        that the site will be improved with buildings or other 
        improvements and these improvements will provide a substantial 
        increase in the property tax base within a reasonable period of 
        time or the site will be used for an important publicly owned or 
        tax-exempt facility. 
           Sec. 15.  Minnesota Statutes 2002, section 116J.64, 
        subdivision 2, is amended to read: 
           Subd. 2.  "Indian" means a person of one-quarter or more 
        Indian blood and who is an enrolled member of a federally 
        recognized Minnesota based band or tribe. 
           Sec. 16.  Minnesota Statutes 2002, section 116J.8731, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PURPOSE.] The Minnesota investment fund is 
        created to provide financial assistance, through partnership 
        with communities, for the creation of new employment or to 
        maintain existing employment, and for business start-up, 
        expansions, and retention.  It shall accomplish these goals by 
        the following means: 
           (1) creation or retention of permanent private-sector jobs 
        in order to create above-average economic growth consistent with 
        environmental protection, which includes investments in 
        technology and equipment that increase productivity and provide 
        for a higher wage; 
           (2) stimulation or leverage of private investment to ensure 
        economic renewal and competitiveness; 
           (3) increasing the local tax base, based on demonstrated 
        measurable outcomes, to guarantee a diversified industry mix; 
           (4) improving the quality of existing jobs, based on 
        increases in wages or improvements in the job duties, training, 
        or education associated with those jobs; 
           (5) improvement of employment and economic opportunity for 
        citizens in the region to create a reasonable standard of 
        living, consistent with federal and state guidelines on low- to 
        moderate-income persons; and 
           (5) (6) stimulation of productivity growth through improved 
        manufacturing or new technologies, including cold weather 
        testing.  
           Sec. 17.  Minnesota Statutes 2002, section 116J.8731, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ELIGIBLE PROJECTS.] Assistance must be evaluated 
        on the existence of the following conditions: 
           (1) creation of new jobs or, retention of existing jobs, or 
        improvements in the quality of existing jobs as measured by the 
        wages, skills, or education associated with those jobs; 
           (2) increase in the tax base; 
           (3) the project can demonstrate that investment of public 
        dollars induces private funds; 
           (4) the project can demonstrate an excessive public 
        infrastructure or improvement cost beyond the means of the 
        affected community and private participants in the project; 
           (5) the project provides higher wage levels to the 
        community or will add value to current workforce skills; 
           (6) whether assistance is necessary to retain existing 
        business; and 
           (7) whether assistance is necessary to attract out-of-state 
        business.  
           A grant or loan cannot be made based solely on a finding 
        that the conditions in clause (6) or (7) exist.  A finding must 
        be made that a condition in clause (1), (2), (3), (4), or (5) 
        also exists. 
           Applications recommended for funding shall be submitted to 
        the commissioner. 
           Sec. 18.  Minnesota Statutes 2002, section 116J.8731, 
        subdivision 5, is amended to read: 
           Subd. 5.  [GRANT LIMITS.] A Minnesota investment fund grant 
        may not be approved for an amount in excess of 
        $500,000 $1,000,000.  This limit covers all money paid to 
        complete the same project, whether paid to one or more grant 
        recipients and whether paid in one or more fiscal years.  The 
        portion of a Minnesota investment fund grant that exceeds 
        $100,000 must be repaid to the state when it is repaid to the 
        local community or recognized Indian tribal government by the 
        person or entity to which it was loaned by the local community 
        or Indian tribal government.  Money repaid to the state must be 
        credited to the general fund a Minnesota investment revolving 
        loan account in the state treasury.  Funds in the account are 
        appropriated to the commissioner and must be used in the same 
        manner as are funds appropriated to the Minnesota investment 
        fund.  Funds repaid to the state through existing Minnesota 
        investment fund agreements must be credited to the Minnesota 
        investment revolving loan account effective July 1, 2003.  A 
        grant or loan may not be made to a person or entity for the 
        operation or expansion of a casino or a store which is used 
        solely or principally for retail sales.  Persons or entities 
        receiving grants or loans must pay each employee total 
        compensation, including benefits not mandated by law, that on an 
        annualized basis is equal to at least 110 percent of the federal 
        poverty level for a family of four. 
           Sec. 19.  Minnesota Statutes 2002, section 116J.8731, 
        subdivision 7, is amended to read: 
           Subd. 7.  [CONTRACTUAL OBLIGATION.] A business receiving 
        Minnesota investment fund grants must demonstrate why the grant 
        is necessary for a project and enter into an agreement with the 
        local grantor.  The agreement, among other things, must obligate 
        the recipient to pay the minimum compensation set by this 
        section and meet job creation or job enhancement goals.  A 
        recipient that breaches the agreement must repay the grant 
        directly to the commissioner.  Repayments under this subdivision 
        must be deposited in the general fund Minnesota investment 
        revolving loan account.  If the commissioner determines, during 
        the repayment period of a Minnesota investment fund loan, that 
        the project for which the loan was made is in imminent danger of 
        ceasing operations due to financial difficulties, the 
        commissioner may elect to delay loan payments due on the loan 
        for a period of no more than two years.  In making a 
        determination about whether a recipient qualifies for possible 
        delay in payments, the commissioner must consider all available 
        information regarding the health of the affected business and 
        the industry in which it operates, the potential for 
        displacement of workers in the event that operations cease, and 
        the likelihood that a delay of payments will provide the 
        business with a reasonable ability to improve its financial 
        condition. 
           Sec. 20.  [116J.8747] [JOB TRAINING PROGRAM GRANT.] 
           Subdivision 1.  [GRANT ALLOWED.] The commissioner may 
        provide a grant to a qualified job training program from money 
        appropriated for the purposes of this section as follows: 
           (1) a $9,000 placement grant paid to a job training program 
        upon placement in employment of a qualified graduate of the 
        program; and 
           (2) a $9,000 retention grant paid to a job training program 
        upon retention in employment of a qualified graduate of the 
        program for at least one year. 
           Subd. 2.  [QUALIFIED JOB TRAINING PROGRAM.] To qualify for 
        grants under this section, a job training program must satisfy 
        the following requirements: 
           (1) the program must be operated by a nonprofit corporation 
        that qualifies under section 501(c)(3) of the Internal Revenue 
        Code; 
           (2) the program must spend at least $15,000 per graduate of 
        the program; 
           (3) the program must provide education and training in: 
           (i) basic skills, such as reading, writing, mathematics, 
        and communications; 
           (ii) thinking skills, such as reasoning, creative thinking, 
        decision making, and problem solving; and 
           (iii) personal qualities, such as responsibility, 
        self-esteem, self-management, honesty, and integrity; 
           (4) the program must provide income supplements, when 
        needed, to participants for housing, counseling, tuition, and 
        other basic needs; 
           (5) the program's education and training course must last 
        for at least six months; 
           (6) individuals served by the program must: 
           (i) be 18 years of age or older; 
           (ii) have federal adjusted gross income of no more than 
        $11,000 per year in the two years immediately before entering 
        the program; 
           (iii) have assets of no more than $7,000, excluding the 
        value of a homestead; and 
           (iv) not have been claimed as a dependent on the federal 
        tax return of another person in the previous taxable year; and 
           (7) the program must be certified by the commissioner of 
        trade and economic development as meeting the requirements of 
        this subdivision. 
           Subd. 3.  [GRADUATION AND RETENTION GRANT 
        REQUIREMENTS.] For purposes of a placement grant under this 
        section, a qualified graduate is a graduate of a job training 
        program qualifying under subdivision 2 who is placed in a job in 
        Minnesota that pays at least $9 per hour or its equivalent plus 
        health care benefits.  To qualify for a retention grant under 
        this section for a retention fee, a job in which the graduate is 
        retained must pay at least $10 per hour or its equivalent plus 
        health care benefits at the end of the first year of employment. 
           Subd. 4.  [DUTIES OF PROGRAM.] (a) A program certified by 
        the commissioner under subdivision 2 must comply with the 
        requirements of this subdivision. 
           (b) A program must maintain records for each qualified 
        graduate.  The records must include information sufficient to 
        verify the graduate's eligibility under this section, identify 
        the employer, and describe the job including its compensation 
        rate and benefits. 
           (c) A program must report by January 1 of each year to the 
        commissioner.  The report must include, at least, information on:
           (1) the number of graduates placed; 
           (2) demographic information on the graduates; 
           (3) the type of position in which each graduate is placed, 
        including compensation information; 
           (4) the tenure of each graduate at the placed position or 
        in other jobs; 
           (5) the amount of employer fees paid to the program; 
           (6) the amount of money raised by the program from other 
        sources; and 
           (7) the types and sizes of employers with which graduates 
        have been placed and retained. 
           Sec. 21.  Minnesota Statutes 2002, section 116J.8764, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [ENROLLMENT OF LOANS WITHOUT COMMISSIONER'S FULL 
        PREMIUM PAYMENT.] The commissioner may continue to accept loans 
        for enrollment into the program even if the amount of funds 
        contained in the account is zero or an amount less than the full 
        amount that is required to be transferred under section 
        116J.8765, subdivision 2, paragraph (a), (b), or (c).  
           Sec. 22.  Minnesota Statutes 2002, section 116J.955, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXPENDITURE OF ACCOUNT.] The commissioner may 
        use the rural rehabilitation account for the purposes that are 
        allowed under the Minnesota rural rehabilitation corporation's 
        charter and agreement with, as may be amended or modified by, 
        the United States Secretary of Agriculture as provided in Public 
        Law Number 499, 81st Congress, enacted May 3, 1950 and as 
        allowed under Laws 1987, chapter 386, article 1.  Not more than 
        three percent of the combined book value of the Minnesota rural 
        rehabilitation corporation's assets account and the regional 
        revolving funds may be used for administrative purposes in a 
        year without approval of the United States Secretary of 
        Agriculture.  Any funds used for administrative purposes may 
        only be drawn from money remaining in the Minnesota rural 
        rehabilitation account.  
           Sec. 23.  Minnesota Statutes 2002, section 116J.966, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AGRICULTURAL PROMOTION.] The commissioner of 
        agriculture, and the commissioner of trade and economic 
        development, and the director of the Minnesota trade division 
        shall cooperate with each other to promote the beneficial 
        agricultural interests of the state.  The commissioner of trade 
        and economic development and the director of the Minnesota trade 
        division have agriculture has primary responsibility for 
        promoting state agricultural interests to international 
        markets.  The commissioner of trade and economic development and 
        the director of the Minnesota trade division are agriculture is 
        also responsible for the promotion of national trade programs 
        related to international marketing.  The commissioner of 
        agriculture has primary responsibility for promoting the 
        agriculture interests of producers, promoting state agricultural 
        markets, and promoting agricultural interests of the state in 
        cooperative production and marketing efforts with other states 
        and the United States Department of Agriculture.  The 
        commissioner of agriculture is also responsible for promoting 
        the national and international marketing of state agricultural 
        products. 
           Sec. 24.  Minnesota Statutes 2002, section 116J.994, 
        subdivision 4, is amended to read: 
           Subd. 4.  [WAGE AND JOB GOALS.] The subsidy agreement, in 
        addition to any other goals, must include:  (1) goals for the 
        number of jobs created, which may include separate goals for the 
        number of part-time or full-time jobs, or, in cases where job 
        loss is specific and demonstrable, goals for the number of jobs 
        retained; and (2) wage goals for the any jobs created or 
        retained; and (3) wage goals for any jobs to be enhanced through 
        increased wages.  After a public hearing, if the creation or 
        retention of jobs is determined not to be a goal, the wage and 
        job goals may be set at zero. 
           In addition to other specific goal time frames, the wage 
        and job goals must contain specific goals to be attained within 
        two years of the benefit date. 
           Sec. 25.  Minnesota Statutes 2002, section 116J.994, 
        subdivision 9, is amended to read: 
           Subd. 9.  [COMPILATION AND SUMMARY REPORT.] The department 
        of trade and economic development must publish a compilation and 
        summary of the results of the reports for the previous calendar 
        year by August 1 of each year 2004 and every other year 
        thereafter.  The reports of the government agencies to the 
        department and the compilation and summary report of the 
        department must be made available to the public. 
           The commissioner must coordinate the production of reports 
        so that useful comparisons across time periods and across 
        grantors can be made.  The commissioner may add other 
        information to the report as the commissioner deems necessary to 
        evaluate business subsidies.  Among the information in the 
        summary and compilation report, the commissioner must include: 
           (1) total amount of subsidies awarded in each development 
        region of the state; 
           (2) distribution of business subsidy amounts by size of the 
        business subsidy; 
           (3) distribution of business subsidy amounts by time 
        category; 
           (4) distribution of subsidies by type and by public 
        purpose; 
           (5) percent of all business subsidies that reached their 
        goals; 
           (6) percent of business subsidies that did not reach their 
        goals by two years from the benefit date; 
           (7) total dollar amount of business subsidies that did not 
        meet their goals after two years from the benefit date; 
           (8) percent of subsidies that did not meet their goals and 
        that did not receive repayment; 
           (9) list of recipients that have failed to meet the terms 
        of a subsidy agreement in the past five years and have not 
        satisfied their repayment obligations; 
           (10) number of part-time and full-time jobs within separate 
        bands of wages; and 
           (11) benefits paid within separate bands of wages.  
           Sec. 26.  Minnesota Statutes 2002, section 116J.994, 
        subdivision 10, is amended to read: 
           Subd. 10.  [COMPILATION.] The department of trade and 
        economic development must publish a compilation of granting 
        agencies' criteria policies adopted in the previous two calendar 
        year years by August 1 of each year 2004 and every other year 
        thereafter. 
           Sec. 27.  Minnesota Statutes 2002, section 116J.995, is 
        amended to read: 
           116J.995 [ECONOMIC GRANTS.] 
           An appropriation rider in an appropriation to the 
        department of trade and economic development that specifies that 
        the appropriation be granted to a particular business or class 
        of businesses must contain a statement of the expected benefits 
        associated with the grant.  At a minimum, the statement must 
        include goals for the number of jobs created or enhanced, wages 
        paid, and the tax revenue increases due to the grant.  The wage 
        and job goals must contain specific goals to be attained within 
        two years of the benefit date.  The statement must specify the 
        recipient's obligation if the recipient does not attain the 
        goals.  At a minimum, the statement must require a recipient 
        failing to meet the job and wage goals to pay back the 
        assistance plus interest to the department of trade and economic 
        development provided that repayment may be prorated to reflect 
        partial fulfillment of goals.  The interest rate must be set at 
        no less than the implicit price deflator as defined under 
        section 116J.994, subdivision 6.  The legislature, after a 
        public hearing, may extend for up to one year the period for 
        meeting the goals provided in the statement. 
           Sec. 28.  Minnesota Statutes 2002, section 116L.02, is 
        amended to read: 
           116L.02 [JOB SKILLS PARTNERSHIP PROGRAM.] 
           (a) The Minnesota job skills partnership program is created 
        to act as a catalyst to bring together employers with specific 
        training needs with educational or other nonprofit institutions 
        which can design programs to fill those needs.  The partnership 
        shall work closely with employers to prepare, train and place 
        prospective or incumbent workers in identifiable positions as 
        well as assisting educational or other nonprofit institutions in 
        developing training programs that coincide with current and 
        future employer requirements.  The partnership shall provide 
        grants to educational or other nonprofit institutions for the 
        purpose of training workers.  A participating business must 
        match the grant-in-aid made by the Minnesota job skills 
        partnership.  The match may be in the form of funding, 
        equipment, or faculty. 
           (b) The partnership program shall administer the health 
        care and human services worker training and retention program 
        under sections 116L.10 to 116L.15. 
           (c) The partnership program is authorized to use funds to 
        pay for training for individuals who have incomes at or below 
        200 percent of the federal poverty line.  The board may grant 
        funds to eligible recipients to pay for board-certified training.
        Eligible recipients of grants may include public, private, or 
        nonprofit entities that provide employment services to 
        low-income individuals. 
           Sec. 29.  Minnesota Statutes 2002, section 116L.04, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PARTNERSHIP PROGRAM.] (a) The partnership 
        program may provide grants-in-aid to educational or other 
        nonprofit educational institutions using the following 
        guidelines:  
           (1) the educational or other nonprofit educational 
        institution is a provider of training within the state in either 
        the public or private sector; 
           (2) the program involves skills training that is an area of 
        employment need; and 
           (3) preference will be given to educational or other 
        nonprofit training institutions which serve economically 
        disadvantaged people, minorities, or those who are victims of 
        economic dislocation and to businesses located in rural areas.  
           (b) A single grant to any one institution shall not exceed 
        $400,000.  Up to 25 percent of a grant may be used for 
        preemployment training. 
           Sec. 30.  Minnesota Statutes 2002, section 116L.04, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [PATHWAYS PROGRAM.] The pathways program may 
        provide grants-in-aid for developing programs which assist in 
        the transition of persons from welfare to work and assist 
        individuals at or below 200 percent of the federal poverty 
        guidelines.  The program is to be operated by the board.  The 
        board shall consult and coordinate with program administrators 
        at the department of economic security to design and provide 
        services for temporary assistance for needy families recipients. 
           Pathways grants-in-aid may be awarded to educational or 
        other nonprofit training institutions for education and training 
        programs and services supporting education and training programs 
        that serve eligible recipients. 
           Preference shall be given to projects that: 
           (1) provide employment with benefits paid to employees; 
           (2) provide employment where there are defined career paths 
        for trainees; 
           (3) pilot the development of an educational pathway that 
        can be used on a continuing basis for transitioning persons from 
        welfare to work; and 
           (4) demonstrate the active participation of department of 
        economic security workforce centers, Minnesota state college and 
        university institutions and other educational institutions, and 
        local welfare agencies. 
           Pathways projects must demonstrate the active involvement 
        and financial commitment of private business.  Pathways projects 
        must be matched with cash or in-kind contributions on at least a 
        one-to-one ratio by participating private business. 
           A single grant to any one institution shall not exceed 
        $400,000.  Up to 25 percent of a grant may be used for 
        preemployment training.  
           The board shall annually, by March 31, report to the 
        commissioners of economic security and trade and economic 
        development on pathways programs, including the number of 
        recipients participating in the program, the number of 
        participants placed in employment, the salary and benefits they 
        receive, and the state program costs per participant. 
           Sec. 31.  Minnesota Statutes 2002, section 116L.12, 
        subdivision 4, is amended to read: 
           Subd. 4.  [GRANTS.] Within the limits of available 
        appropriations, the board shall make grants not to exceed 
        $400,000 each to qualifying consortia to operate local, 
        regional, or statewide training and retention programs.  Grants 
        may be made from TANF funds, general fund appropriations, and 
        any other funding sources available to the board, provided the 
        requirements of those funding sources are satisfied.  Up to 25 
        percent of a grant may be used for preemployment training.  
        Grant awards must establish specific, measurable outcomes and 
        timelines for achieving those outcomes.  
           Sec. 32.  Minnesota Statutes 2002, section 116L.17, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GRANTS.] The board shall make grants to 
        workforce service areas or other eligible organizations to 
        provide services to dislocated workers.  The board shall 
        allocate funds available for the purposes of this section in its 
        discretion to respond to large layoffs.  The board shall 
        regularly allocate funds to provide services to individual 
        dislocated workers or small groups.  The allocation for this 
        purpose must be no less than at least 35 percent and no more 
        than 50 percent of the projected actual collections, including 
        penalty and interest accounts, interest, and other earnings of 
        the workforce development fund during the period for which the 
        allocation is made, less any collection costs paid out of the 
        fund and any amounts appropriated by the legislature from the 
        workforce development fund for programs other than the state 
        dislocated worker program.  The board shall consider the need 
        for services to individual workers and workers in small layoffs 
        in comparison to those in large layoffs relative to the needs in 
        previous years when making this allocation.  The board may, in 
        its discretion, allocate funds carried forward from previous 
        years under subdivision 9 for large, small, or individual 
        layoffs. 
           Sec. 33.  Minnesota Statutes 2002, section 116L.17, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ALLOCATION OF FUNDS.] The board, in consultation 
        with local workforce councils and local elected officials, shall 
        develop a method of distributing funds to provide services for 
        dislocated workers who are dislocated as a result of small or 
        individual layoffs.  The board shall consider current requests 
        for services and the likelihood of future layoffs when making 
        this allocation.  The board shall consider factors for 
        determining the allocation amounts that include, but are not 
        limited to, the previous year's obligations and projected 
        layoffs.  After the first quarter of the program year, the board 
        shall evaluate the obligations by workforce service areas for 
        the purpose of reallocating funds to workforce service areas 
        with increased demand for services.  Periodically throughout the 
        program year, the board shall consider making additional 
        allocations to the workforce service areas with a demonstrated 
        need for increased funding.  The board shall make an initial 
        determination regarding allocations under this subdivision by 
        July 15, 2001, and in subsequent years shall make a 
        determination by April June 15. 
           Sec. 34.  Minnesota Statutes 2002, section 116L.17, 
        subdivision 8, is amended to read: 
           Subd. 8.  [ADMINISTRATIVE COSTS.] No more than three five 
        percent of the funds appropriated to the board for the purposes 
        of this section may be spent by the board for its administrative 
        costs. 
           Sec. 35.  Minnesota Statutes 2002, section 116L.17, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [RAPID RESPONSE ACTIVITIES.] The commissioner, in 
        cooperation with local workforce councils, shall be responsible 
        for implementing the following rapid response activities: 
           (1) establishing on-site contact with employer and employee 
        representatives within a short period of time after becoming 
        aware of a current or projected plant closing or substantial 
        layoff in order to: 
           (i) provide information on and facilitate access to 
        available public programs and services; and 
           (ii) provide emergency assistance adapted to the particular 
        closure or layoff; 
           (2) promoting the formation of a employee-management 
        committee by providing: 
           (i) immediate assistance in the establishment of the 
        employee-management committee; 
           (ii) technical advice and information on sources of 
        assistance and liaison with other public and private services 
        and programs; and 
           (iii) assistance in the selection of worker representatives 
        in the event no union is present; 
           (3) collecting and disseminating information related to 
        economic dislocation, including potential closings or layoffs, 
        and all available resources with the state for dislocated 
        workers; 
           (4) providing or obtaining appropriate financial and 
        technical advice and liaison with economic development agencies 
        and other organizations to assist in efforts to avert 
        dislocation; 
           (5) disseminating information throughout the state on the 
        availability of services and activities carried out by the 
        dislocated worker unit; and 
           (6) assisting the local workforce council in developing its 
        own coordinated response to a plant closing or substantial 
        layoff and access to state economic development assistance. 
           Sec. 36.  Minnesota Statutes 2002, section 116M.14, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LOW-INCOME AREA.] "Low-income area" means 
        Minneapolis, St. Paul, and those cities in the metropolitan area 
        as defined in section 473.121, subdivision 2, that have an 
        average income that is below 60 80 percent of the median income 
        for a four-person family as of the latest report by the United 
        States Census Bureau. 
           Sec. 37.  [SUSPENSION OF MORTGAGE CREDIT CERTIFICATE AID.] 
           Notwithstanding Minnesota Statutes, section 462C.15, during 
        the fiscal years 2004 and 2005, no applications or reports shall 
        be made pursuant to subdivision 1 of that section, no aid shall 
        be provided pursuant to subdivision 3 of that section, and no 
        money is appropriated pursuant to subdivision 4 of that section. 
           Sec. 38.  [WORKFORCE SERVICE AREA STUDY.] 
           The governor's workforce development council, in 
        consultation with representatives of the local workforce 
        councils and local elected officials, shall study the current 
        configuration of workforce services areas in Minnesota and 
        whether the efficiency or quality of service delivery could be 
        improved by changing the boundaries of the workforce service 
        areas or reducing the number of areas.  As part of this study, 
        the council shall develop recommendations for clarifying the 
        governance role of the local workforce councils and strategies 
        for improving the ability of the local workforce councils and 
        local elected officials to oversee and manage an integrated 
        service delivery system at the community level.  Before 
        redesignating any workforce service area, the governor must seek 
        the advice of the local elected officials from the affected 
        workforce services areas.  The council shall report to the 
        legislative committees with jurisdiction over workforce 
        development by January 15, 2004. 
           Sec. 39.  [DISLOCATED WORKER PROGRAM STUDY.] 
           The governor's workforce development council, in 
        consultation with representatives of the local workforce 
        councils, certified providers, including independent grantees, 
        and local elected officials, shall develop recommendations for 
        legislative changes that would improve the efficiency of the 
        dislocated worker program. 
           The governor's workforce development council shall report 
        the recommendations to the legislative committees with 
        jurisdiction over workforce development programs by January 15, 
        2004. 
           Sec. 40.  [REPEALER.] 
           Minnesota Statutes 2002, sections 13.598, subdivision 2; 
        17.03, subdivision 8; 116J.411, subdivision 3; 116J.415, 
        subdivisions 6, 9, and 10; 116J.617, subdivisions 5 and 6; 
        116J.693; and 116J.9665, are repealed. 

                                   ARTICLE 14
                        MOTOR VEHICLE INSTALLMENT SALES
           Section 1.  Minnesota Statutes 2002, section 47.59, 
        subdivision 4a, is amended to read: 
           Subd. 4a.  [FINANCE CHARGE FOR MOTOR VEHICLE RETAIL 
        INSTALLMENT SALES.] A retail installment contract evidencing the 
        retail installment sale of a motor vehicle as defined in section 
        168.66 is subject to the finance charge limitations in 
        paragraphs (a) and (b). 
           (a) The finance charge authorized by this subdivision in a 
        retail installment sale may not exceed the following annual 
        percentage rates applied to the principal balance determined in 
        the same manner as in section 168.71, subdivision 2, clause (5): 
           (1) Class 1.  A motor vehicle designated by the 
        manufacturer by a year model of the same or not more than one 
        year before the year in which the sale is made, 18 percent per 
        year. 
           (2) Class 2.  A motor vehicle designated by the 
        manufacturer by a year model of two to three years before the 
        year in which the sale is made, 19.75 percent per year. 
           (3) Class 3.  Any motor vehicle not in Class 1 or Class 2, 
        23.25 percent per year. 
           (b) A sale of a manufactured home made after July 31, 1983, 
        is governed by this subdivision for purposes of determining the 
        lawful finance charge rate, except that the maximum finance 
        charge for a Class 1 manufactured home may not exceed 14.5 
        percent per year.  A retail installment sale of a manufactured 
        home that imposes a finance charge that is greater than the rate 
        permitted by this subdivision is lawful and enforceable in 
        accordance with its terms until the indebtedness is fully 
        satisfied if the rate was lawful when the sale was made. 
           Sec. 2.  Minnesota Statutes 2002, section 168.66, 
        subdivision 14, is amended to read: 
           Subd. 14.  [CASH SALE PRICE.] "Cash sale price" means the 
        price at which the seller would in good faith sell to the buyer, 
        and the buyer would in good faith buy from the seller, the motor 
        vehicle which is the subject matter of the retail installment 
        contract, if such sale were a sale for cash, instead of a retail 
        installment sale.  The cash sale price may include any taxes, 
        charges for delivery, servicing, repairing or improving the 
        motor vehicle, including accessories and their installation, and 
        any other charges agreed upon between the parties.  The cash 
        price may not include a documentary fee or document 
        administration fee in excess of $25 $50 for services actually 
        rendered to, for, or on behalf of, the retail buyer in 
        preparing, handling, and processing documents relating to the 
        motor vehicle and the closing of the retail sale. 
           Sec. 3.  Minnesota Statutes 2002, section 168.71, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONTENTS.] The retail installment contract shall 
        contain the following items: 
           (1) the cash sale price of the motor vehicle which is the 
        subject matter of the retail installment contract; 
           (2) the total amount of the retail buyer's down payment, 
        whether made in money or goods, or partly in money or partly in 
        goods; 
           (3) the difference between clauses (1) and (2); 
           (4) the charge amount, if any, included in the transaction 
        but not included in clause (1) to pay the balance of an existing 
        purchase money motor vehicle lien which exceeds the value of the 
        trade-in amount, or to discharge an interest in an existing 
        motor vehicle lease, for any insurance and other benefits not 
        included in clause (1), specifying the types of coverage and, 
        taxes, fees, and charges that actually are or will be paid to 
        public officials or government agencies, including those for 
        perfecting, releasing, or satisfying a security interest if such 
        taxes, fees, or charges are not included in clause (1), and any 
        other amount to be financed that is related to the transaction; 
           (5) principal balance, which is the sum of clauses (3) and 
        (4); 
           (6) the amount of the finance charge; 
           (7) the total of payments payable by the retail buyer to 
        the retail seller and the number of installment payments 
        required and the amount of each installment expressed in dollars 
        or percentages, and date of each payment necessary finally to 
        pay the total of payments which is the sum of clauses (5) and 
        (6). 
        Provided, however, that said clauses (1) to (7) inclusive need 
        not be stated in the terms, sequence, or order set forth above.  
        Provided further, that clauses (6) and (7) may be disclosed on 
        the assumption that all scheduled payments under the contract 
        will be made when due. 
        In lieu of the above clauses, the retail seller may give the 
        retail buyer disclosures which satisfy the requirements of the 
        Federal Truth-In-Lending Act in effect as of the time of the 
        contract, notwithstanding whether or not that act applies to the 
        transaction. 
           Sec. 4.  Minnesota Statutes 2002, section 168.75, is 
        amended to read: 
           168.75 [VEHICLE SALES FINANCE COMPANY VIOLATIONS; 
        REMEDIES.] 
           (a) [CRIMINAL VIOLATIONS.] Any person engaged in the 
        business of a sales finance company in this state without a 
        license therefor as provided in sections 168.66 to 168.77 shall 
        be guilty of a gross misdemeanor and punished by a fine not 
        exceeding $3,000, or by imprisonment for a period not to exceed 
        one year, or by both such fine and imprisonment in the 
        discretion of the court.  
           (b) In case of an intentional failure to comply with a 
        fraudulent violation of any provision of sections 168.66 to 
        168.77, the buyer shall have a right to recover from the person 
        committing such violation, to set off or counterclaim in any 
        action by such person to enforce such contract an amount as 
        liquidated damages, the whole of the contract due and payable, 
        plus reasonable attorneys' fees.  
           (c) In case of a failure to comply with any provision of 
        sections 168.66 to 168.77, other than an intentional failure a 
        fraudulent violation, the buyer shall have a right to recover 
        from the person committing such violation, to set off or 
        counterclaim in any action by such person to enforce such 
        contract an amount as liquidated damages equal to three times 
        the amount of any time price differential charged in excess of 
        the amount authorized by sections 168.66 to 168.77 or $50, 
        whichever is greater, plus reasonable attorneys' fees.  
           Sec. 5.  [EFFECTIVE DATE.] 
           Sections 1 to 3 are effective the day following final 
        enactment.  Section 4 is effective August 1, 2003, and applies 
        to all installment sales contracts entered into on or after that 
        date. 

                                   ARTICLE 15
                                 MISCELLANEOUS
           Section 1.  Minnesota Statutes 2002, section 13.462, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PUBLIC DATA.] The names and addresses of 
        applicants for and recipients of benefits, aid, or assistance 
        through programs administered by any political subdivision, 
        state agency, or statewide system that are intended to assist 
        with the purchase of, rehabilitation, or other purposes related 
        to housing or other real property are classified as public data 
        on individuals.  If an applicant or recipient is a corporation, 
        the names and addresses of the officers of the corporation are 
        public data on individuals.  If an applicant or recipient is a 
        partnership, the names and addresses of the partners are public 
        data on individuals.  The amount or value of benefits, aid, or 
        assistance received is public data. 
           Sec. 2.  Minnesota Statutes 2002, section 43A.24, 
        subdivision 2, is amended to read: 
           Subd. 2.  [OTHER ELIGIBLE PERSONS.] The following persons 
        are eligible for state paid life insurance and hospital, 
        medical, and dental benefits as determined in applicable 
        collective bargaining agreements or by the commissioner or by 
        plans pursuant to section 43A.18, subdivision 6, or by the board 
        of regents for employees of the University of Minnesota not 
        covered by collective bargaining agreements.  Coverages made 
        available, including optional coverages, are as contained in the 
        plan established pursuant to section 43A.18, subdivision 2: 
           (a) a member of the state legislature, provided that 
        changes in benefits resulting in increased costs to the state 
        shall not be effective until expiration of the term of the 
        members of the existing house of representatives.  An eligible 
        member of the state legislature may decline to be enrolled for 
        state paid coverages by filing a written waiver with the 
        commissioner.  The waiver shall not prohibit the member from 
        enrolling the member or dependents for optional coverages, 
        without cost to the state, as provided for in section 43A.26.  A 
        member of the state legislature who returns from a leave of 
        absence to a position previously occupied in the civil service 
        shall be eligible to receive the life insurance and hospital, 
        medical, and dental benefits to which the position is entitled; 
           (b) an employee of the legislature or an employee of a 
        permanent study or interim committee or commission or a state 
        employee on leave of absence to work for the legislature, during 
        a regular or special legislative session, as determined by the 
        legislative coordinating commission; 
           (c) a judge of the appellate courts or an officer or 
        employee of these courts; a judge of the district court, a judge 
        of county court, or a judge of county municipal court; a 
        district court referee, judicial officer, court reporter, or law 
        clerk; a district administrator; an employee of the office of 
        the district administrator that is not in the second or fourth 
        judicial district; a court administrator or employee of the 
        court administrator in a judicial district under section 
        480.181, subdivision 1, paragraph (b), and a guardian ad litem 
        program employee; 
           (d) a salaried employee of the public employees retirement 
        association; 
           (e) a full-time military or civilian officer or employee in 
        the unclassified service of the department of military affairs 
        whose salary is paid from state funds; 
           (f) a salaried employee of the Minnesota historical 
        society, whether paid from state funds or otherwise, who is not 
        a member of the governing board; 
           (g) an employee of the regents of the University of 
        Minnesota; 
           (h) notwithstanding section 43A.27, subdivision 3, an 
        employee of the state of Minnesota or the regents of the 
        University of Minnesota who is at least 60 and not yet 65 years 
        of age on July 1, 1982, who is otherwise eligible for employee 
        and dependent insurance and benefits pursuant to section 43A.18 
        or other law, who has at least 20 years of service and retires, 
        earlier than required, within 60 days of March 23, 1982; or an 
        employee who is at least 60 and not yet 65 years of age on July 
        1, 1982, who has at least 20 years of state service and retires, 
        earlier than required, from employment at Rochester state 
        hospital after July 1, 1981; or an employee who is at least 55 
        and not yet 65 years of age on July 1, 1982, and is covered by 
        the Minnesota state retirement system correctional employee 
        retirement plan or the state patrol retirement fund, who has at 
        least 20 years of state service and retires, earlier than 
        required, within 60 days of March 23, 1982.  For purposes of 
        this clause, a person retires when the person terminates active 
        employment in state or University of Minnesota service and 
        applies for a retirement annuity.  Eligibility shall cease when 
        the retired employee attains the age of 65, or when the employee 
        chooses not to receive the annuity that the employee has applied 
        for.  The retired employee shall be eligible for coverages to 
        which the employee was entitled at the time of retirement, 
        subject to any changes in coverage through collective bargaining 
        or plans established pursuant to section 43A.18, for employees 
        in positions equivalent to that from which retired, provided 
        that the retired employee shall not be eligible for state-paid 
        life insurance.  Coverages shall be coordinated with relevant 
        health insurance benefits provided through the federally 
        sponsored Medicare program; 
           (i) an employee of an agency of the state of Minnesota 
        identified through the process provided in this paragraph who is 
        eligible to retire prior to age 65.  The commissioner and the 
        exclusive representative of state employees shall enter into 
        agreements under section 179A.22 to identify employees whose 
        positions are in programs that are being permanently eliminated 
        or reduced due to federal or state policies or practices.  
        Failure to reach agreement identifying these employees is not 
        subject to impasse procedures provided in chapter 179A.  The 
        commissioner must prepare a plan identifying eligible employees 
        not covered by a collective bargaining agreement in accordance 
        with the process outlined in section 43A.18, subdivisions 2 and 
        3.  For purposes of this paragraph, a person retires when the 
        person terminates active employment in state service and applies 
        for a retirement annuity.  Eligibility ends as provided in the 
        agreement or plan, but must cease at the end of the month in 
        which the retired employee chooses not to receive an annuity, or 
        the employee is eligible for employer-paid health insurance from 
        a new employer.  The retired employees shall be eligible for 
        coverages to which they were entitled at the time of retirement, 
        subject to any changes in coverage through collective bargaining 
        or plans established under section 43A.18 for employees in 
        positions equivalent to that from which they retired, provided 
        that the retired employees shall not be eligible for state-paid 
        life insurance; 
           (j) employees of the state board of public defense, with 
        eligibility determined by the state board of public defense in 
        consultation with the commissioner of employee relations; and 
           (k) employees of the health data institute under section 
        62J.451, subdivision 12, as paid for by the health data 
        institute; and 
           (l) employees of supporting organizations of Minnesota 
        Technology, Inc., established after July 1, 2003, under section 
        116O.05, subdivision 4, as paid for by the supporting 
        organization. 
           Sec. 3.  Minnesota Statutes 2002, section 116O.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BOARD OF DIRECTORS.] The corporation is governed 
        by a board of 15 directors.  The selection, membership terms, 
        compensation, removal, and filling of vacancies of public 
        members of the board are as provided in section 15.0575 the 
        corporation's bylaws.  Membership of the board consists of the 
        following: 
           (1) a person from the private sector, appointed by the 
        governor, who shall act as chair and serve as chief science 
        advisor to the governor and the legislature; 
           (2) the dean of the institute of technology of the 
        University of Minnesota; 
           (3) the dean of the graduate school of the University of 
        Minnesota; 
           (4) the commissioner of the department of trade and 
        economic development; 
           (5) the commissioner of administration; 
           (6) six members appointed by the governor, at least one of 
        whom must be a person from a public post-secondary system other 
        than the University of Minnesota; and 
           (7) one member who is not a member of the legislature 
        appointed by each of the following:  the speaker of the house of 
        representatives, the house of representatives minority leader, 
        the senate majority leader, and the senate minority leader. 
           At least 50 percent of the members described in clauses (6) 
        and (7) must live outside the metropolitan area as defined in 
        section 473.121, subdivision 2, and must have experience in 
        manufacturing, the technology industry, or research and 
        development.  
           Sec. 4.  Minnesota Statutes 2002, section 116O.091, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ADVISORY COMMITTEES.] An advisory committee is 
        created to assist in selecting vendors and evaluating the 
        corporation's project outreach activities.  The advisory 
        committee shall include the president of the University of 
        Minnesota or the president's designee, the commissioner of trade 
        and economic development or the commissioner's designee, the 
        chair of the Minnesota Technology, Inc., board of directors or 
        the chair's designee, a member of the state senate appointed by 
        the subcommittee on committees of the senate rules and 
        administration committee, a member of the house of 
        representatives appointed by the speaker, and at least five 
        users of project outreach services appointed by the named 
        members.  The advisory committee expires June 30, 2004. 
           Sec. 5.  Minnesota Statutes 2002, section 116O.12, is 
        amended to read: 
           116O.12 [MINNESOTA TECHNOLOGY ACCOUNT.] 
           (a) The Minnesota technology account is in the special 
        revenue fund.  Money in the account not needed for the immediate 
        purposes of the corporation may be invested by the state board 
        of investment in any way authorized by section 11A.24.  Money in 
        the account is appropriated to the corporation to be used as 
        provided in this chapter.  
           (b) The account consists of:  
           (1) money appropriated and transferred from other state 
        funds; 
           (2) fees and charges collected by the corporation; 
           (3) income from investments and purchases; 
           (4) revenue from loans, rentals, royalties, dividends, and 
        other proceeds collected in connection with lawful corporate 
        purposes; 
           (5) gifts, donations, and bequests made to the corporation; 
        and 
           (6) other income credited to the account by law.  
           Sec. 6.  Minnesota Statutes 2002, section 624.20, 
        subdivision 1, is amended to read: 
           Subdivision 1.  (a) As used in sections 624.20 to 624.25, 
        the term "fireworks" means any substance or combination of 
        substances or article prepared for the purpose of producing a 
        visible or an audible effect by combustion, explosion, 
        deflagration, or detonation, and includes blank cartridges, toy 
        cannons, and toy canes in which explosives are used, the type of 
        balloons which require fire underneath to propel them, 
        firecrackers, torpedoes, skyrockets, Roman candles, daygo bombs, 
        sparklers other than those specified in paragraph (c), or other 
        fireworks of like construction, and any fireworks containing any 
        explosive or inflammable compound, or any tablets or other 
        device containing any explosive substance and commonly used as 
        fireworks.  
           (b) The term "fireworks" shall not include toy pistols, toy 
        guns, in which paper caps containing 25/100 grains or less of 
        explosive compound are used and toy pistol caps which contain 
        less than 20/100 grains of explosive mixture. 
           (c) The term also does not include wire or wood sparklers 
        of not more than 100 grams of mixture per item, other sparkling 
        items which are nonexplosive and nonaerial and contain 75 grams 
        or less of chemical mixture per tube or a total of 200 grams or 
        less for multiple tubes, snakes and glow worms, smoke devices, 
        or trick noisemakers which include paper streamers, party 
        poppers, string poppers, snappers, and drop pops, each 
        consisting of not more than twenty-five hundredths grains of 
        explosive mixture.  The use of items listed in this paragraph is 
        not permitted on public property.  This paragraph does not 
        authorize the purchase of items listed in it by persons younger 
        than 18 years of age.  The age of a purchaser of items listed in 
        this paragraph must be verified by photographic identification. 
           (d) A local unit of government may impose an annual license 
        fee for the retail sale of items authorized under paragraph 
        (c).  The annual license fee of each retail seller that is in 
        the business of selling only the items authorized under 
        paragraph (c) may not exceed $350, and the annual license of 
        each other retail seller may not exceed $100.  A local unit of 
        government may not: 
           (1) impose any fee or charge, other than the fee authorized 
        by this paragraph, on the retail sale of items authorized under 
        paragraph (c); 
           (2) prohibit or restrict the display of items for permanent 
        or temporary retail sale authorized under paragraph (c) that 
        comply with National Fire Protection Association Standard 1124 
        (2003 edition); or 
           (3) impose on a retail seller any financial guarantee 
        requirements, including bonding or insurance provisions, 
        containing restrictions or conditions not imposed on the same 
        basis on all other business licensees. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 7.  [TRANSFER OF RESPONSIBILITIES FOR INDIAN BUSINESS 
        LOAN PROGRAM.] 
           The responsibilities of the Indian Affairs Council in 
        administering the Indian Business Loan program under Minnesota 
        Statutes, section 116J.64, are transferred to the department of 
        trade and economic development, which may enter into an 
        agreement with the governing body of a federally recognized 
        Indian tribe in Minnesota to administer the program or a portion 
        of the program. 
           Sec. 8.  [SEASONAL AGRICULTURAL OPERATIONS; MANUFACTURED 
        HOME PARK EXCLUSIONS.] 
           Notwithstanding Minnesota Statutes, section 327.14, 
        subdivision 3, and section 327.23, subdivision 2, the term 
        "manufactured home park" shall not be construed to include up to 
        four manufactured homes maintained by an individual or a company 
        on premises associated with a seasonal agricultural operation 
        and used exclusively to house labor or other personnel occupied 
        in such operation if: 
           (1) these manufactured homes are equipped with indoor 
        plumbing facilities and meet the standards established in 
        Minnesota Rules, parts 4630.0600, subpart 1, 4630.0700, 
        4630.1200, 4630.3500, and 4715.0310; 
           (2) these manufactured homes provide at least 80 square 
        feet of indoor living space per inhabitant of each home; 
           (3) these manufactured homes are installed in compliance 
        with the state building code under Minnesota Rules, chapter 
        1350; 
           (4) these manufactured homes are in compliance with 
        Minnesota Statutes, section 326.243; 
           (5) the individual or company maintaining these 
        manufactured homes, with the assistance and approval of the city 
        or town where the homes are located, develops a plan to be 
        posted in conspicuous locations near the homes for the 
        sheltering, or the safe evacuation to a safe place of shelter, 
        of the residents of the homes in time of severe weather 
        conditions, such as tornadoes, high winds, and floods; and 
           (6) the individual or company maintains the homes in a 
        clean, orderly, and sanitary condition. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment and expires two years after the 
        effective date. 
           Sec. 9.  [WORKING GROUP ON SUPPORTIVE HOUSING FOR LONG-TERM 
        HOMELESSNESS.] 
           The commissioners of the department of human services, 
        trade and economic development, the Minnesota housing finance 
        agency, and the department of corrections shall convene a 
        working group to develop and implement strategies to foster the 
        development of supportive housing options in order to: 
           (1) reduce the number of Minnesota individuals and families 
        that experience long-term homelessness; 
           (2) reduce the inappropriate use of emergency health care, 
        shelter, chemical dependency, corrections, and similar services; 
        and 
           (3) increase the employability, self-sufficiency, and other 
        social outcomes for individuals and families experiencing 
        long-term homelessness. 
           The working group must include metropolitan area and 
        greater Minnesota representatives of: 
           (1) counties; 
           (2) housing authorities; 
           (3) nonprofit organizations knowledgeable about supportive 
        housing; 
           (4) nonprofit organizations experienced in the provision of 
        services to the homeless; 
           (5) developers and other business interests; 
           (6) philanthropic organizations; and 
           (7) other representatives identified as necessary to the 
        development of the plan, including other government agencies. 
           The working group shall: 
           (1) determine the key characteristics of individuals and 
        families experiencing long-term homelessness for whom affordable 
        housing with links to support services is needed; 
           (2) identify a variety of supportive housing models that 
        address the different needs of individuals and families 
        experiencing long-term homelessness; 
           (3) determine the existing resources that may fund these 
        models for families and individuals who are experiencing 
        long-term homelessness; 
           (4) identify the gaps in capital, operating, and service 
        funding that affect the ability to develop supportive housing 
        models; 
           (5) propose a formal, interagency decision-making process 
        and a plan to fund supportive housing proposals based on the 
        agreed upon criteria, with the goal of maximizing access to 
        funding for the capital, operating, and services costs of 
        supportive housing proposals either scattered site or project 
        based; 
           (6) identify and recommend models to coordinate mainstream 
        resources and services, i.e., resources and services available 
        to the general population, or more specifically, low-income 
        populations, that can be utilized to assist individuals and 
        families experiencing homelessness, so that housing and 
        homelessness supports can be maximized; and 
           (7) identify and recommend remediation actions to remove 
        barriers individuals and families experiencing homelessness face 
        when attempting to access mainstream resources and services. 
           The plan must include an estimate of the statewide need for 
        supportive housing, an estimate of necessary resources to 
        implement the plan, and alternative timetables for 
        implementation of the plan and propose changes in laws and 
        regulations that impede the effective delivery and coordination 
        of services for the targeted population in affordable housing. 
           The commissioners must report on the status of efforts by 
        the working group to improve the effectiveness of the delivery 
        and coordination of services and access to housing for 
        individuals and families experiencing long-term homelessness and 
        recommend next steps to the appropriate committees of the 
        legislature by February 15, 2004. 
           Presented to the governor May 24, 2003 
           Signed by the governor May 28, 2003, 4:04 p.m.