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CHAPTER 114--H.F.No. 976

An act

relating to state government; appropriating money for environment, natural resources, and agriculture; modifying and providing for disposition of certain revenue; modifying pesticide control; providing certain fee exemptions; establishing agricultural water certification program; modifying Minnesota Noxious Weed Law; providing for biobased and biofuel products; modifying certain bond requirements; modifying animal waste technician provisions; making technical changes; modifying certain permit requirements; providing for federal law compliance; providing for certain easements; modifying all-terrain vehicle operating provisions; establishing pollinator habitat program; modifying snowmobile registration provisions; modifying state trails; modifying State Timber Act; modifying certain park boundaries and expenditures; modifying reporting requirements; modifying Petroleum Tank Release Cleanup Act; providing for silica sand mining model standards and technical assistance; providing for wastewater laboratory certification; providing for product stewardship program; providing for discontinuance of Hennepin County Soil and Water Conservation District; authorizing recreation of Hall's Island; providing for certain interim ordinance extension or renewal; repealing certain pollution control rules; modifying certain environmental review; modifying Water Law; modifying public utilities provisions; providing certain criteria for wastewater treatment systems; providing for sanitary districts; requiring studies and reports; requiring rulemaking;

amending Minnesota Statutes 2012, sections 13.6435, by adding a subdivision; 13.7411, subdivision 4; 17.03, subdivision 3; 17.1015; 17.118, subdivision 2; 18.77, subdivisions 3, 4, 10, 12; 18.78, subdivision 3; 18.79, subdivisions 6, 13; 18.82, subdivision 1; 18.91, subdivisions 1, 2; 18B.01, by adding a subdivision; 18B.07, subdivisions 4, 5, 7; 18B.26, subdivision 3; 18B.305; 18B.316, subdivisions 1, 3, 4, 8, 9; 18B.37, subdivision 4; 18C.111, subdivision 4; 18C.430; 18C.433, subdivision 1; 31.94; 41A.10, subdivision 2, by adding a subdivision; 41A.105, subdivisions 1a, 3, 5; 41A.12, subdivision 3, by adding a subdivision; 41B.04, subdivision 9; 41D.01, subdivision 4; 84.027, by adding a subdivision; 84.415, by adding a subdivision; 84.63; 84.82, subdivision 3, by adding a subdivision; 84.8205, subdivision 1; 84.922, by adding a subdivision; 84.9256, subdivision 1; 84.928, subdivision 1; 84D.108, subdivision 2; 85.015, subdivision 13; 85.052, subdivision 6; 85.053, subdivision 8; 85.054, by adding a subdivision; 85.055, subdivisions 1, 2; 85.42; 89.0385; 90.01, subdivisions 4, 5, 6, 8, 11; 90.031, subdivision 4; 90.041, subdivisions 2, 5, 6, 9, by adding subdivisions; 90.045; 90.061, subdivision 8; 90.101, subdivision 1; 90.121; 90.145; 90.151, subdivisions 1, 2, 3, 4, 6, 7, 8, 9; 90.161; 90.162; 90.171; 90.181, subdivision 2; 90.191, subdivision 1; 90.193; 90.195; 90.201, subdivision 2a; 90.211; 90.221; 90.252, subdivision 1; 90.301, subdivisions 2, 4; 90.41, subdivision 1; 93.46, by adding a subdivision; 93.481, subdivision 3; 97A.401, subdivision 3; 103G.265, subdivisions 2, 3; 103G.271, subdivisions 1, 4; 103G.287, subdivisions 1, 4, 5; 103I.205, subdivision 1; 114D.50, subdivision 4; 115A.1320, subdivision 1; 115B.20, subdivision 6; 115B.28, subdivision 1; 115B.421; 115C.02, subdivision 4; 115C.08, subdivision 4, by adding a subdivision; 115D.10; 116.48, subdivision 6; 116C.03, subdivisions 2, 4, 5; 116D.04, by adding a subdivision; 116J.437, subdivision 1; 223.17, by adding a subdivision; 232.22, by adding a subdivision; 239.051, by adding subdivisions; 239.761, subdivision 3; 239.791, subdivisions 1, 2a, 2b; 239.7911; 275.066; 282.04, subdivision 1; 296A.01, by adding a subdivision; 473.846; 583.215; Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended; Laws 2010, chapter 361, article 3, section 7; proposing coding for new law in Minnesota Statutes, chapters 17; 18; 84; 90; 93; 103G; 115; 115A; 116C; 383B; proposing coding for new law as Minnesota Statutes, chapter 442A; repealing Minnesota Statutes 2012, sections 18.91, subdivisions 3, 5; 18B.07, subdivision 6; 90.163; 90.173; 90.41, subdivision 2; 103G.265, subdivision 2a; 115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10; 115.19; 115.20; 115.21; 115.22; 115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29; 115.30; 115.31; 115.32; 115.33; 115.34; 115.35; 115.36; 115.37; 239.791, subdivision 1a; Laws 2011, First Special Session chapter 2, article 4, section 30; Minnesota Rules, parts 7021.0010, subparts 1, 2, 4, 5; 7021.0020; 7021.0030; 7021.0040; 7021.0050, subpart 5; 9210.0300; 9210.0310; 9210.0320; 9210.0330; 9210.0340; 9210.0350; 9210.0360; 9210.0370; 9210.0380; 9220.0530, subpart 6.

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

ARTICLE 1

AGRICULTURE APPROPRIATIONS

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made in this article. new text end

new text begin 2014 new text end new text begin 2015 new text end new text begin Total new text end
new text begin General new text end new text begin $ new text end new text begin 39,050,000 new text end new text begin $ new text end new text begin 39,050,000 new text end new text begin $ new text end new text begin 78,100,000 new text end
new text begin Agricultural new text end new text begin $ new text end new text begin 1,240,000 new text end new text begin $ new text end new text begin 1,240,000 new text end new text begin $ new text end new text begin 2,480,000 new text end
new text begin Remediation new text end new text begin $ new text end new text begin 388,000 new text end new text begin $ new text end new text begin 388,000 new text end new text begin $ new text end new text begin 776,000 new text end
new text begin Total new text end new text begin $ new text end new text begin 40,678,000 new text end new text begin $ new text end new text begin 40,678,000 new text end new text begin $ new text end new text begin 81,356,000 new text end

Sec. 2.

new text begin AGRICULTURE APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this act. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2014" and "2015" used in this act mean that the appropriations listed under them are available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015. "The biennium" is fiscal years 2014 and 2015. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2014 new text end new text begin 2015 new text end

Sec. 3.

new text begin DEPARTMENT OF AGRICULTURE new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin 33,198,000 new text end new text begin $ new text end new text begin 33,198,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2014 new text end new text begin 2015 new text end
new text begin General new text end new text begin 31,570,000 new text end new text begin 31,570,000 new text end
new text begin Remediation new text end new text begin 388,000 new text end new text begin 388,000 new text end
new text begin Agricultural new text end new text begin 1,240,000 new text end new text begin 1,240,000 new text end

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

new text begin Subd. 2. new text end

new text begin Protection Services new text end

new text begin 12,808,000 new text end new text begin 12,808,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2014 new text end new text begin 2015 new text end
new text begin General new text end new text begin 11,980,000 new text end new text begin 11,980,000 new text end
new text begin Agricultural new text end new text begin 440,000 new text end new text begin 440,000 new text end
new text begin Remediation new text end new text begin 388,000 new text end new text begin 388,000 new text end

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

new text begin $25,000 the first year and $25,000 the second year are for compensation for destroyed or crippled animals under Minnesota Statutes, section 3.737. If the amount in the first year is insufficient, the amount in the second year is available in the first year. new text end

new text begin $75,000 the first year and $75,000 the second year are for compensation for crop damage under Minnesota Statutes, section 3.7371. If the amount in the first year is insufficient, the amount in the second year is available in the first year. new text end

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

new text begin $225,000 the first year and $225,000 the second year are for an increase in retail food handler inspections. new text end

new text begin $245,000 the first year and $245,000 the second year are for an increase in the operating budget for the Laboratory Services Division. new text end

new text begin Notwithstanding Minnesota Statutes, section 18B.05, $90,000 the first year and $90,000 the second year are from the pesticide regulatory account in the agricultural fund for an increase in the operating budget for the Laboratory Services Division. new text end

new text begin $100,000 the first year and $100,000 the second year are from the pesticide regulatory account in the agricultural fund to monitor pesticides and pesticide degradates in surface water and groundwater in areas vulnerable to surface water impairments and groundwater degradation and to use data collected to improve pesticide use practices. This is a onetime appropriation. new text end

new text begin $100,000 the first year and $100,000 the second year are from the pesticide regulatory account in the agricultural fund to update and modify applicator education and training materials. No later than January 15, 2015, the commissioner must report to the legislative committees with jurisdiction over agriculture finance regarding the agency's progress and a schedule of activities the commissioner will accomplish to update and modify additional materials by December 31, 2017. new text end

new text begin Notwithstanding Minnesota Statutes, section 18B.05, $150,000 the first year and $150,000 the second year are from the pesticide regulatory account in the agricultural fund to: develop and use best management practices that protect pollinators by providing habitat necessary for their survival and reproduction; incorporate these practices into pesticide applicator and county agricultural inspector training; and increase public awareness of the importance of pollinators and pollinator habitat. The commissioner may transfer a portion of this appropriation to the Board of Regents of the University of Minnesota to design habitat and measure and report the outcomes achieved under this paragraph. This is a onetime appropriation. new text end

new text begin Subd. 3. new text end

new text begin Agricultural Marketing and Development new text end

new text begin 3,062,000 new text end new text begin 3,062,000 new text end

new text begin $186,000 the first year and $186,000 the second year are for transfer to the Minnesota grown account and may be used as grants for Minnesota grown promotion under Minnesota Statutes, section 17.102. Grants may be made for one year. Notwithstanding Minnesota Statutes, section 16A.28, the appropriations encumbered under contract on or before June 30, 2015, for Minnesota grown grants in this paragraph are available until June 30, 2017. new text end

new text begin $100,000 each year is for a licensed education professional for the agriculture in the classroom program to develop and disseminate curriculum, provide teacher training opportunities, and work with schools to enhance agricultural literacy by incorporating agriculture into classroom curriculum. new text end

new text begin The commissioner may use funds appropriated in this subdivision for annual cost-share payments to resident farmers or entities that sell, process, or package agricultural products in this state for the costs of organic certification. Annual cost-share payments must be 75 percent of the cost of the certification or $750, whichever is less. The commissioner may allocate these funds for organic market and program development, including organic producer education efforts, assistance for persons transitioning from conventional to organic agriculture, or sustainable agriculture demonstration grants authorized under Minnesota Statutes, section 17.116, and pertaining to organic research or demonstration. Any unencumbered balance does not cancel at the end of the first year and is available for the second year. new text end

new text begin Subd. 4. new text end

new text begin Bioenergy and Value-Added Agriculture new text end

new text begin 10,235,000 new text end new text begin 10,235,000 new text end

new text begin $10,235,000 the first year and $10,235,000 the second year are for the agricultural growth, research, and innovation program in Minnesota Statutes, section 41A.12. The commissioner shall consider creating a competitive grant program for small renewable energy projects for rural residents. No later than February 1, 2014, and February 1, 2015, the commissioner must report to the legislative committees with jurisdiction over agriculture policy and finance regarding the commissioner's accomplishments and anticipated accomplishments in the following areas: developing new markets for Minnesota farmers by providing more fruits and vegetables for Minnesota school children; facilitating the start-up, modernization, or expansion of livestock operations including beginning and transitioning livestock operations; facilitating the start-up, modernization, or expansion of other beginning and transitioning farms; research on conventional and cover crops; and biofuel and other renewable energy development including small renewable energy projects for rural residents. new text end

new text begin The commissioner may use up to 4.5 percent of this appropriation for costs incurred to administer the program. Any unencumbered balance does not cancel at the end of the first year and is available for the second year. Notwithstanding Minnesota Statutes, section 16A.28, the appropriations encumbered under contract on or before June 30, 2015, for agricultural growth, research, and innovation grants in this subdivision are available until June 30, 2017. new text end

new text begin Money in this appropriation may be used to provide additional assistance to persons eligible for the pilot agricultural microloan program under Minnesota Statutes, section 41B.056. new text end

new text begin Funds in this appropriation may be used for grants under this paragraph. The NextGen Energy Board, established in Minnesota Statutes, section 41A.105, shall make recommendations to the commissioner on grants for owners of Minnesota facilities producing bioenergy, biobased content, or a biobased formulated product; for organizations that provide for on-station, on-farm field scale research and outreach to develop and test the agronomic and economic requirements of diverse stands of prairie plants and other perennials for bioenergy systems; or for certain nongovernmental entities. For the purposes of this paragraph, "bioenergy" includes transportation fuels derived from cellulosic material, as well as the generation of energy for commercial heat, industrial process heat, or electrical power from cellulosic materials via gasification or other processes. Grants are limited to 50 percent of the cost of research, technical assistance, or equipment related to bioenergy, biobased content, or biobased formulated product production or $500,000, whichever is less. Grants to nongovernmental entities for the development of business plans and structures related to community ownership of eligible bioenergy facilities together may not exceed $150,000. The board shall make a good-faith effort to select projects that have merit and, when taken together, represent a variety of bioenergy technologies, biomass feedstocks, and geographic regions of the state. Projects must have a qualified engineer provide certification on the technology and fuel source. Grantees must provide reports at the request of the commissioner. No later than February 1, 2014, and February 1, 2015, the commissioner shall report on the projects funded under this appropriation to the legislative committees with jurisdiction over agriculture policy and finance. new text end

new text begin Money in this appropriation may be used for sustainable agriculture grants under Minnesota Statutes, section 17.116. new text end

new text begin Notwithstanding Minnesota Statutes, section 41A.12, subdivision 3, of the amount appropriated in this subdivision, $1,000,000 the first year and $1,000,000 the second year are for distribution in equal amounts to each of the state's county fairs to enhance arts access and education and to preserve and promote Minnesota's history and cultural heritage. new text end

new text begin Subd. 5. new text end

new text begin Administration and Financial Assistance new text end

new text begin 7,093,000 new text end new text begin 7,093,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin 6,293,000 new text end new text begin 6,293,000 new text end
new text begin Agricultural new text end new text begin 800,000 new text end new text begin 800,000 new text end

new text begin $634,000 the first year and $634,000 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 that the commissioner deems most beneficial to Minnesota's dairy farmers. The commissioner must submit a detailed accomplishment report and a work plan detailing future plans for, and anticipated accomplishments from, expenditures under this program to the chairs and ranking minority members of the legislative committees with jurisdiction over agricultural policy and finance 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 and ranking minority members. new text end

new text begin $47,000 the first year and $47,000 the second year are for the Northern Crops Institute. These appropriations may be spent to purchase equipment. new text end

new text begin $18,000 the first year and $18,000 the second year are for a grant to the Minnesota Livestock Breeders Association. new text end

new text begin $235,000 the first year and $235,000 the second year are for grants to the Minnesota Agricultural Education and Leadership Council for programs of the council under Minnesota Statutes, chapter 41D. new text end

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

new text begin $1,000 the first year and $1,000 the second year are for grants to the Minnesota State Poultry Association. new text end

new text begin $108,000 the first year and $108,000 the second year are for annual grants to the Minnesota Turf Seed Council for basic and applied research on: (1) the improved production of forage and turf seed related to new and improved varieties; and (2) native plants, including plant breeding, nutrient management, pest management, disease management, yield, and viability. The grant recipient may subcontract with a qualified third party for some or all of the basic or applied research. new text end

new text begin $500,000 the first year and $500,000 the second year are for grants to Second Harvest Heartland on behalf of Minnesota's six Second Harvest food banks for the purchase of milk for distribution to Minnesota's food shelves and other charitable organizations that are eligible to receive food from the food banks. Milk purchased under the grants must be acquired from Minnesota milk processors and based on low-cost bids. The milk must be allocated to each Second Harvest food bank serving Minnesota according to the formula used in the distribution of United States Department of Agriculture commodities under The Emergency Food Assistance Program (TEFAP). Second Harvest Heartland must submit quarterly reports to the commissioner on forms prescribed by the commissioner. The reports must include, but are not limited to, information on the expenditure of funds, the amount of milk purchased, and the organizations to which the milk was distributed. Second Harvest Heartland may enter into contracts or agreements with food banks for shared funding or reimbursement of the direct purchase of milk. Each food bank receiving money from this appropriation may use up to two percent of the grant for administrative expenses. new text end

new text begin $94,000 the first year and $94,000 the second year are for transfer to the Board of Trustees of the Minnesota State Colleges and Universities for statewide mental health counseling support to farm families and business operators through farm business management programs at Central Lakes College and Ridgewater College. new text end

new text begin $17,000 the first year and $17,000 the second year are for grants to the Minnesota Horticultural Society. new text end

new text begin Notwithstanding Minnesota Statutes, section 18C.131, $800,000 the first year and $800,000 the second year are from the fertilizer account in the agricultural fund for grants for fertilizer research as awarded by the Minnesota Agricultural Fertilizer Research and Education Council under Minnesota Statutes, section 18C.71. The amount appropriated in either fiscal year must not exceed 57 percent of the inspection fee revenue collected under Minnesota Statutes, section 18C.425, subdivision 6, during the previous fiscal year. No later than February 1, 2015, the commissioner shall report to the legislative committees with jurisdiction over agriculture finance. The report must include the progress and outcome of funded projects as well as the sentiment of the council concerning the need for additional research funds. new text end

Sec. 4.

new text begin BOARD OF ANIMAL HEALTH new text end

new text begin $ new text end new text begin 4,837,000 new text end new text begin $ new text end new text begin 4,837,000 new text end

Sec. 5.

new text begin AGRICULTURAL UTILIZATION RESEARCH INSTITUTE new text end

new text begin $ new text end new text begin 2,643,000 new text end new text begin $ new text end new text begin 2,643,000 new text end

ARTICLE 2

AGRICULTURE POLICY

Section 1.

Minnesota Statutes 2012, section 13.6435, is amended by adding a subdivision to read:

new text begin Subd. 14. new text end

new text begin Agricultural water quality certification program. new text end

new text begin Data collected under the Minnesota agricultural water quality certification program are classified under section 17.9899. new text end

Sec. 2.

Minnesota Statutes 2012, section 17.03, subdivision 3, is amended to read:

Subd. 3.

Cooperation with federal agencies.

(a) The commissioner shall cooperate with the government of the United States, with financial agencies created to assist in the development of the agricultural resources of this state, and so far as practicable may use the facilities provided by the existing state departments and the various state and local organizations. This subdivision is intended to relate to every function and duty which devolves upon the commissioner.

(b) The commissioner may apply for, receive, and disburse federal funds made available to the state by federal law or regulation for any purpose related to the powers and duties of the commissioner. All money received by the commissioner under this paragraph shall be deposited in the state treasury and is appropriated to the commissioner for the purposes for which it was received. new text begin Money made available under this paragraph may be paid pursuant to applicable federal regulations and rate structures. new text end Money received under this paragraph does not cancel and is available for expenditure according to federal law. The commissioner may contract with and enter into grant agreements with persons, organizations, educational institutions, firms, corporations, other state agencies, and any agency or instrumentality of the federal government to carry out agreements made with the federal government relating to the expenditure of money under this paragraph. Bid requirements under chapter 16C do not apply to contracts under this paragraph.

Sec. 3.

Minnesota Statutes 2012, section 17.1015, is amended to read:

17.1015 PROMOTIONAL EXPENDITURES.

In order to accomplish the purposes of section 17.101, the commissioner may participate jointly with private persons in appropriate programs and projects and may enter into contracts to carry out those programs and projects. The contracts may not include the acquisition of land or buildings and are not subject to the provisions of chapter 16C relating to competitive bidding.

The commissioner may spend money appropriated for the purposes of section 17.101new text begin in the same manner that private persons, firms, corporations, and associations make expenditures for these purposesnew text end , and expenditures made pursuant to section 17.101 for food, lodging, or travel are not governed by the travel rules of the commissioner of management and budget.

Sec. 4.

Minnesota Statutes 2012, section 17.118, subdivision 2, is amended to read:

Subd. 2.

Definitions.

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

(b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed cervidae, ratitae, bison, sheep, horses, and llamas.

(c) "Qualifying expenditures" means the amount spent for:

(1) the acquisition, construction, or improvement of buildings or facilities for the production of livestock or livestock products;

(2) the development of pasture for use by livestock including, but not limited to, the acquisition, development, or improvement of:

(i) lanes used by livestock that connect pastures to a central location;

(ii) watering systems for livestock on pasture including water lines, booster pumps, and well installations;

(iii) livestock stream crossing stabilization; and

(iv) fences; or

(3) the acquisition of equipment for livestock housing, confinement, feeding, and waste management including, but not limited to, the following:

(i) freestall barns;

(ii) watering facilities;

(iii) feed storage and handling equipment;

(iv) milking parlors;

(v) robotic equipment;

(vi) scales;

(vii) milk storage and cooling facilities;

(viii) bulk tanks;

(ix) computer hardware and software and associated equipment used to monitor the productivity and feeding of livestock;

(x) manure pumping and storage facilities;

(xi) swine farrowing facilities;

(xii) swine and cattle finishing barns;

(xiii) calving facilities;

(xiv) digesters;

(xv) equipment used to produce energy;

(xvi) on-farm processing facilities equipment;

(xvii) fences; and

(xviii) livestock pens and corrals and sorting, restraining, and loading chutes.

Except for qualifying pasture development expenditures under clause (2), qualifying expenditures only include amounts that are allowed to be capitalized and deducted under either section 167 or 179 of the Internal Revenue Code in computing federal taxable income. Qualifying expenditures do not include an amount paid to refinance existing debt.

deleted text begin (d) "Qualifying period" means, for a grant awarded during a fiscal year, that full calendar year of which the first six months precede the first day of the current fiscal year. For example, an eligible person who makes qualifying expenditures during calendar year 2008 is eligible to receive a livestock investment grant between July 1, 2008, and June 30, 2009. deleted text end

Sec. 5.

new text begin [17.9891] PURPOSE. new text end

new text begin The commissioner, in consultation with the commissioner of natural resources, commissioner of the Pollution Control Agency, and Board of Water and Soil Resources, may implement a Minnesota agricultural water quality certification program whereby a producer who demonstrates practices and management sufficient to protect water quality is certified for up to ten years and presumed to be contributing the producer's share of any targeted reduction of water pollutants during the certification period. The program is voluntary. The voluntary program will first be piloted in selected watersheds across the state, until the commissioner, in consultation with the Minnesota Agricultural Water Quality Certification Program Advisory Committee, commissioner of natural resources, commissioner of the Pollution Control Agency, and Board of Water and Soil Resources, determines the program is suitable to be implemented in other watersheds. new text end

Sec. 6.

new text begin [17.9892] DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin The definitions in this section apply to sections 17.9891 to 17.993. new text end

new text begin Subd. 2. new text end

new text begin Certification. new text end

new text begin "Certification" means a producer has demonstrated compliance with all applicable environmental rules and statutes for all of the producer's owned and rented agricultural land and has achieved a satisfactory score through the certification instrument as verified by a certifying agent. new text end

new text begin Subd. 3. new text end

new text begin Certifying agent. new text end

new text begin "Certifying agent" means a person who is authorized by the commissioner to assess producers to determine whether a producer satisfies the standards of the program. new text end

new text begin Subd. 4. new text end

new text begin Effective control. new text end

new text begin "Effective control" means possession of land by ownership, written lease, or other legal agreement and authority to act as decision maker for the day-to-day management of the operation at the time the producer achieves certification and for the required certification period. new text end

new text begin Subd. 5. new text end

new text begin Eligible land. new text end

new text begin "Eligible land" means all acres of a producer's agricultural operation, whether contiguous or not, that are under the effective control of the producer at the time the producer enters into the program and that the producer operates with equipment, labor, and management. new text end

new text begin Subd. 6. new text end

new text begin Program. new text end

new text begin "Program" means the Minnesota agricultural water quality certification program. new text end

new text begin Subd. 7. new text end

new text begin Technical assistance. new text end

new text begin "Technical assistance" means professional, advisory, or cost-share assistance provided to individuals in order to achieve certification. new text end

Sec. 7.

new text begin [17.9893] CERTIFICATION INSTRUMENT. new text end

new text begin The commissioner, in consultation with the Minnesota Agricultural Water Quality Certification Program Advisory Committee, commissioner of natural resources, commissioner of the Pollution Control Agency, and Board of Water and Soil Resources, shall develop an analytical instrument to assess the water quality practices and management of agricultural operations. This instrument shall be used to certify that the water quality practices and management of an agricultural operation are consistent with state water quality goals and standards. The commissioner shall define a satisfactory score for certification purposes. The certification instrument tool shall: new text end

new text begin (1) integrate applicable existing regulatory requirements; new text end

new text begin (2) utilize technology and prioritize ease of use; new text end

new text begin (3) utilize a water quality index or score applicable to the landscape; new text end

new text begin (4) incorporate a process for updates and revisions as practices, management, and technology changes become established and approved; and new text end

new text begin (5) comprehensively address water quality impacts. new text end

Sec. 8.

new text begin [17.9894] CERTIFYING AGENT LICENSE. new text end

new text begin Subdivision 1. new text end

new text begin License. new text end

new text begin A person who offers certification services to producers as part of the program must satisfy all criteria in subdivision 2 and be licensed by the commissioner. A certifying agent is ineligible to provide certification services to any producer to whom the certifying agent has also provided technical assistance. Notwithstanding section 16A.1283, the commissioner may set license fees. new text end

new text begin Subd. 2. new text end

new text begin Certifying agent requirements. new text end

new text begin In order to be licensed as a certifying agent, a person must: new text end

new text begin (1) be an agricultural conservation professional employed by a soil and water conservation district or the Natural Resources Conservation Service, a Minnesota certified crop advisor recognized by the American Society of Agronomy, or an individual with agricultural conservation experience approved by the commissioner. The commissioner may establish eligibility criteria by rule; new text end

new text begin (2) have passed a comprehensive exam, as set by the commissioner, evaluating knowledge of water quality, soil health, best farm management techniques, and the certification instrument; and new text end

new text begin (3) maintain continuing education requirements as set by the commissioner. new text end

Sec. 9.

new text begin [17.9895] DUTIES OF A CERTIFYING AGENT. new text end

new text begin Subdivision 1. new text end

new text begin Duties. new text end

new text begin A certifying agent shall conduct a formal certification assessment utilizing the certification instrument to determine whether a producer meets program criteria. If a producer satisfies all requirements, the certifying agent shall notify the commissioner of the producer's eligibility and request that the commissioner issue a certificate. All records and documents used in the assessment shall be compiled by the certifying agent and submitted to the commissioner. new text end

new text begin Subd. 2. new text end

new text begin Violations. new text end

new text begin (a) In the event a certifying agent violates any provision of sections 17.9891 to 17.993 or an order of the commissioner, the commissioner may issue a written warning or a correction order and may suspend or revoke a license. new text end

new text begin (b) If the commissioner suspends or revokes a license, the certifying agent has ten days from the date of suspension or revocation to appeal. If a certifying agent appeals, the commissioner shall hold an administrative hearing within 30 days of the suspension or revocation of the license, or longer by agreement of the parties, to determine whether the license is revoked or suspended. The commissioner shall issue an opinion within 30 days. If a person notifies the commissioner that the person intends to contest the commissioner's opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with the applicable provisions of chapter 14 for hearings in contested cases. new text end

Sec. 10.

new text begin [17.9896] CERTIFICATION PROCEDURES. new text end

new text begin Subdivision 1. new text end

new text begin Producer duties. new text end

new text begin A producer who seeks certification of eligible land shall conduct an initial assessment using the certification instrument, obtain technical assistance if necessary to achieve a satisfactory score on the certification instrument, and apply for certification from a licensed certifying agent. new text end

new text begin Subd. 2. new text end

new text begin Owned land. new text end

new text begin Once certified, if a producer obtains ownership of additional agricultural land, the producer must notify a certifying agent and obtain certification of the additional land within one year in order to retain the producer's original certification. new text end

new text begin Subd. 3. new text end

new text begin Leased land. new text end

new text begin Once certified, if a producer leases additional land, then the producer must notify a certifying agent before farming operations commence on the newly leased land. A producer who operates leased land is not required to implement practices that permanently alter the landscape in order to be certified or remain certified if the land is added following the original certification. A producer who operates leased land must demonstrate sufficient annual crop management practices, consistent with the original certification agreement, in order to remain certified. new text end

new text begin Subd. 4. new text end

new text begin Violations. new text end

new text begin (a) The commissioner may revoke a certification if the producer violates subdivision 2 or 3. new text end

new text begin (b) The commissioner may revoke a certification and seek reimbursement of any monetary benefit a producer may have received due to certification from a producer who fails to maintain certification criteria. new text end

new text begin (c) If the commissioner revokes a certification, the producer has 30 days from the date of suspension or revocation to appeal. If a producer appeals, the commissioner shall hold an administrative hearing within 30 days of the suspension or revocation of the certification, or longer by agreement of the parties, to determine whether the certification is revoked or suspended. The commissioner shall issue an opinion within 30 days. If the producer notifies the commissioner that the producer intends to contest the commissioner's opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with the applicable provisions of chapter 14 for hearings in contested cases. new text end

Sec. 11.

new text begin [17.9897] CERTIFICATION CERTAINTY. new text end

new text begin (a) Once a producer is certified, the producer: new text end

new text begin (1) retains certification for up to ten years from the date of certification if the producer complies with the certification agreement, even if the producer does not comply with new state water protection laws or rules that take effect during the certification period; new text end

new text begin (2) is presumed to be meeting the producer's contribution to any targeted reduction of pollutants during the certification period; new text end

new text begin (3) is required to continue implementation of practices that maintain the producer's certification; and new text end

new text begin (4) is required to retain all records pertaining to certification. new text end

new text begin (b) Paragraph (a) does not preclude enforcement of a local rule or ordinance by a local unit of government. new text end

Sec. 12.

new text begin [17.9898] AUDITS. new text end

new text begin The commissioner shall perform random audits of producers and certifying agents to ensure compliance with the program. All producers and certifying agents shall cooperate with the commissioner during these audits, and provide all relevant documents to the commissioner for inspection and copying. Any delay, obstruction, or refusal to cooperate with the commissioner's audit or falsification of or failure to provide required data or information is a violation subject to the provisions of section 17.9895, subdivision 2, or 17.9896, subdivision 3. new text end

Sec. 13.

new text begin [17.9899] DATA. new text end

new text begin All data collected under the program that identifies a producer or a producer's location are considered nonpublic data as defined in section 13.02, subdivision 9, or private data on individuals as defined in section 13.02, subdivision 12. The commissioner shall make available summary data of program outcomes on data classified as private or nonpublic under this section. new text end

Sec. 14.

new text begin [17.991] RULEMAKING. new text end

new text begin The commissioner may adopt rules to implement the program. new text end

Sec. 15.

new text begin [17.992] REPORTS. new text end

new text begin The commissioner, in consultation with the Minnesota Agricultural Water Quality Certification Program Advisory Committee, commissioner of natural resources, commissioner of the Pollution Control Agency, and Board of Water and Soil Resources, shall issue a biennial report to the chairs and ranking minority members of the legislative committees with jurisdiction over agricultural policy on the status of the program. new text end

Sec. 16.

new text begin [17.993] FINANCIAL ASSISTANCE. new text end

new text begin The commissioner may use contributions from gifts or other state accounts, provided that the purpose of the expenditure is consistent with the purpose of the accounts, for grants, loans, or other financial assistance. new text end

Sec. 17.

Minnesota Statutes 2012, section 18.77, subdivision 3, is amended to read:

Subd. 3.

Control.

"Control" means to deleted text begin destroy all or part of the aboveground growth of noxious weedsdeleted text end new text begin manage or prevent the maturation and spread of propagating parts of noxious weeds from one area to anothernew text end by a lawful method that does not cause unreasonable adverse effects on the environment as defined in section 18B.01, subdivision 31deleted text begin , and prevents the maturation and spread of noxious weed propagating parts from one area to anotherdeleted text end .

Sec. 18.

Minnesota Statutes 2012, section 18.77, subdivision 4, is amended to read:

Subd. 4.

Eradicate.

"Eradicate" means to destroy the aboveground deleted text begin growth and the rootsdeleted text end new text begin and belowground plant partsnew text end of noxious weeds by a lawful method deleted text begin thatdeleted text end new text begin , whichnew text end prevents the maturation and spread of noxious weed propagating parts from one area to another.

Sec. 19.

Minnesota Statutes 2012, section 18.77, subdivision 10, is amended to read:

Subd. 10.

Permanent pasture, hay meadow, woodlot, deleted text begin anddeleted text end new text begin ornew text end other noncrop area.

"Permanent pasture, hay meadow, woodlot, deleted text begin anddeleted text end new text begin ornew text end other noncrop area" means an area of predominantly native or seeded perennial plants that can be used for grazing or hay purposes but is not harvested on a regular basis and is not considered to be a growing crop.

Sec. 20.

Minnesota Statutes 2012, section 18.77, subdivision 12, is amended to read:

Subd. 12.

Propagating parts.

"Propagating parts" means new text begin all new text end plant parts, including seeds, that are capable of producing new plants.

Sec. 21.

new text begin [18.771] NOXIOUS WEED CATEGORIES. new text end

new text begin (a) For purposes of designation under section 18.79, subdivision 13, noxious weed category means each of the following categories. new text end

new text begin (b) "Prohibited noxious weeds" includes noxious weeds that must be controlled or eradicated on all lands within the state. Transportation of a prohibited noxious weed's propagating parts is restricted by permit except as allowed by section 18.82. Prohibited noxious weeds may not be sold or propagated in Minnesota. There are two regulatory listings for prohibited noxious weeds in Minnesota: new text end

new text begin (1) the noxious weed eradicate list is established. Prohibited noxious weeds placed on the noxious weed eradicate list are plants that are not currently known to be present in Minnesota or are not widely established. These species must be eradicated; and new text end

new text begin (2) the noxious weed control list is established. Prohibited noxious weeds placed on the noxious weed control list are plants that are already established throughout Minnesota or regions of the state. Species on this list must at least be controlled. new text end

new text begin (c) "Restricted noxious weeds" includes noxious weeds that are widely distributed in Minnesota, but for which the only feasible means of control is to prevent their spread by prohibiting the importation, sale, and transportation of their propagating parts in the state, except as allowed by section 18.82. new text end

new text begin (d) "Specially regulated plants" includes noxious weeds that may be native species or have demonstrated economic value, but also have the potential to cause harm in noncontrolled environments. Plants designated as specially regulated have been determined to pose ecological, economical, or human or animal health concerns. Species specific management plans or rules that define the use and management requirements for these plants must be developed by the commissioner of agriculture for each plant designated as specially regulated. The commissioner must also take measures to minimize the potential for harm caused by these plants. new text end

new text begin (e) "County noxious weeds" includes noxious weeds that are designated by individual county boards to be enforced as prohibited noxious weeds within the county's jurisdiction and must be approved by the commissioner of agriculture, in consultation with the Noxious Weed Advisory Committee. Each county board must submit newly proposed county noxious weeds to the commissioner of agriculture for review. Approved county noxious weeds shall also be posted with the county's general weed notice prior to May 15 each year. Counties are solely responsible for developing county noxious weed lists and their enforcement. new text end

Sec. 22.

Minnesota Statutes 2012, section 18.78, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Cooperativedeleted text end Weed control agreement.

The commissioner, municipality, or county agricultural inspector or county-designated employee may enter into a deleted text begin cooperativedeleted text end weed control agreement with a landowner or weed management area group to establish a mutually agreed-upon noxious weed management plan for up to three years duration, whereby a noxious weed problem will be controlled without additional enforcement action. If a property owner fails to comply with the noxious weed management plan, an individual notice may be served.

Sec. 23.

Minnesota Statutes 2012, section 18.79, subdivision 6, is amended to read:

Subd. 6.

Training for control or eradication of noxious weeds.

The commissioner shall conduct initial training considered necessary for inspectors and county-designated employees in the enforcement of the Minnesota Noxious Weed Law. The director of deleted text begin thedeleted text end new text begin University of new text end Minnesota Extension deleted text begin Servicedeleted text end may conduct educational programs for the general public that will aid compliance with the Minnesota Noxious Weed Law. Upon request, the commissioner may provide information and other technical assistance to the county agricultural inspector or county-designated employee to aid in the performance of responsibilities specified by the county board under section 18.81, subdivisions 1a and 1b.

Sec. 24.

Minnesota Statutes 2012, section 18.79, subdivision 13, is amended to read:

Subd. 13.

Noxious weed designation.

The commissioner, in consultation with the Noxious Weed Advisory Committee, shall determine which plants are noxious weeds subject to deleted text begin controldeleted text end new text begin regulationnew text end under sections 18.76 to 18.91. The commissioner shall prepare, publish, and revise as necessary, but at least once every three years, a list of noxious weeds and their designated classification. The list must be distributed to the public by the commissioner who may request the help of deleted text begin thedeleted text end University of Minnesota Extension, the county agricultural inspectors, and any other organization the commissioner considers appropriate to assist in the distribution. The commissioner may, in consultation with the Noxious Weed Advisory Committee, accept and consider noxious weed designation petitions from Minnesota citizens or Minnesota organizations or associations.

Sec. 25.

Minnesota Statutes 2012, section 18.82, subdivision 1, is amended to read:

Subdivision 1.

Permits.

Except as provided in section 21.74, if a person wants to transport along a public highway materials or equipment containing the propagating parts of weeds designated as noxious by the commissioner, the person must secure a written permit for transportation of the material or equipment from an inspector or county-designated employee. Inspectors or county-designated employees may issue permits to persons residing or operating within their jurisdiction. deleted text begin If the noxious weed propagating parts are removed from materials and equipment or devitalized before being transported, a permit is not neededdeleted text end new text begin A permit is not required for the transport of noxious weeds for the purpose of destroying propagating parts at a Department of Agriculture-approved disposal site. Anyone transporting noxious weed propagating parts for the purpose of disposal at an approved site shall ensure that all materials are contained in a manner that prevents escape during transportnew text end .

Sec. 26.

Minnesota Statutes 2012, section 18.91, subdivision 1, is amended to read:

Subdivision 1.

Duties.

The commissioner shall consult with the Noxious Weed Advisory Committee to advise the commissioner concerning responsibilities under the noxious weed control program. The committee shall deleted text begin alsodeleted text end evaluate species for invasiveness, difficulty of control, cost of control, benefits, and amount of injury caused by them. For each species evaluated, the committee shall recommend to the commissioner on which noxious weed list or lists, if any, the species should be placed. Species deleted text begin currentlydeleted text end designated as prohibited or restricted noxious weeds new text begin or specially regulated plants new text end must be reevaluated every three years for a recommendation on whether or not they need to remain on the noxious weed lists.new text begin The committee shall also advise the commissioner on the implementation of the Minnesota Noxious Weed Law and assist the commissioner in the development of management criteria for each noxious weed category.new text end Members of the committee are not entitled to reimbursement of expenses nor payment of per diem. Members shall serve two-year terms with subsequent reappointment by the commissioner.

Sec. 27.

Minnesota Statutes 2012, section 18.91, subdivision 2, is amended to read:

Subd. 2.

Membership.

The commissioner shall appoint members, which shall include representatives from the following:

(1) horticultural science, agronomy, and forestry at the University of Minnesota;

(2) the nursery and landscape industry in Minnesota;

(3) the seed industry in Minnesota;

(4) the Department of Agriculture;

(5) the Department of Natural Resources;

(6) a conservation organization;

(7) an environmental organization;

(8) at least two farm organizations;

(9) the county agricultural inspectors;

(10) city, township, and county governments;

(11) the Department of Transportation;

(12) the University of Minnesota Extension;

(13) the timber and forestry industry in Minnesota;

(14) the Board of Water and Soil Resources; deleted text begin anddeleted text end

(15) soil and water conservation districtsdeleted text begin .deleted text end new text begin ;new text end

new text begin (16) Minnesota Association of County Land Commissioners; and new text end

new text begin (17) members as needed. new text end

Sec. 28.

Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision to read:

new text begin Subd. 4a. new text end

new text begin Bulk pesticide storage facility. new text end

new text begin "Bulk pesticide storage facility" means a facility that is required to have a permit under section 18B.14. new text end

Sec. 29.

Minnesota Statutes 2012, section 18B.07, subdivision 4, is amended to read:

Subd. 4.

Pesticide new text begin storage new text end safeguards deleted text begin at application sitesdeleted text end .

A person may not allow a pesticide, rinsate, or unrinsed pesticide container to be stored, kept, or to remain in or on any site without safeguards adequate to prevent an incident.new text begin Pesticides may not be stored in an area with access to an open drain, unless a safeguard is provided.new text end

Sec. 30.

Minnesota Statutes 2012, section 18B.07, subdivision 5, is amended to read:

Subd. 5.

Use of deleted text begin publicdeleted text end water supplies for filling new text begin application new text end equipment.

new text begin (a) new text end A person may not fill pesticide application equipment directly from a public water supply, as defined in section 144.382, new text begin or from public waters, as defined in section 103G.005, subdivision 15, new text end unless the deleted text begin outlet from the publicdeleted text end new text begin equipment or new text end water supply is equipped with a backflow prevention device that complies with the Minnesota Plumbing Code under Minnesota Rules, parts 4715.2000 to 4715.2280.

new text begin (b) Cross connections between a water supply used for filling pesticide application equipment are prohibited. new text end

new text begin (c) This subdivision does not apply to permitted applications of aquatic pesticides to public waters. new text end

Sec. 31.

Minnesota Statutes 2012, section 18B.07, subdivision 7, is amended to read:

Subd. 7.

deleted text begin Cleaning equipment in or near surface waterdeleted text end new text begin Pesticide handling restrictionsnew text end .

(a) A person may not:

(1) clean pesticide application equipment in surface waters of the state; or

(2) fill or clean pesticide application equipment adjacent to surface waters, ditches, or wells where, because of the slope or other conditions, pesticides or materials contaminated with pesticides could enter or contaminate the surface waters, groundwater, or wells, as a result of overflow, leakage, or other causes.

(b) This subdivision does not apply to permitted application of aquatic pesticides to public waters.

Sec. 32.

Minnesota Statutes 2012, section 18B.26, subdivision 3, is amended to read:

Subd. 3.

Registration application and gross sales fee.

(a) For an agricultural pesticide, a registrant shall pay an annual registration application fee for each agricultural pesticide of $350. The fee is due by December 31 preceding the year for which the application for registration is made. The fee is nonrefundable.

(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual registration application fee for each nonagricultural pesticide of $350. The fee is due by December 31 preceding the year for which the application for registration is made. The fee is nonrefundable. The registrant of a nonagricultural pesticide shall pay, in addition to the $350 minimum fee, a fee of 0.5 percent of annual gross sales of the nonagricultural pesticide in the state and the annual gross sales of the nonagricultural pesticide sold into the state for use in this state. deleted text begin The commissioner may not assess a fee under this paragraph if the amount due based on percent of annual gross sales is less than $10deleted text end new text begin No fee is required if the fee due amount based on percent of annual gross sales of a nonagricultural pesticide is less than $10new text end . The registrant shall secure sufficient sales information of nonagricultural pesticides distributed into this state from distributors and dealers, regardless of distributor location, to make a determination. Sales of nonagricultural pesticides in this state and sales of nonagricultural 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 (g), and fees shall be paid by the registrant based upon those reported sales. Sales of nonagricultural pesticides in the state for use outside of the state are exempt from the gross sales 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 nonagricultural pesticide by the registrant for the preceding calendar year. A pesticide determined by the commissioner to be a sanitizer or disinfectant is exempt from the gross sales fee.

(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the agricultural pesticide in the state and the annual gross sales of the agricultural pesticide sold into the state for use in this state.

(d) In those cases where a registrant first sells an agricultural pesticide in or into the state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer license and is responsible for payment of the annual gross sales fee under paragraph (c), record keeping under paragraph (i), and all other requirements of section 18B.316.

(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013, by the commissioner on the registration and sale of pesticides is less than $6,600,000, the commissioner, after a public hearing, may increase proportionally the pesticide sales and product registration fees under this chapter by the amount necessary to ensure this level of revenue is achieved. The authority under this section expires on June 30, 2014. The commissioner shall report any fee increases under this paragraph 60 days before the fee change is effective to the senate and house of representatives agriculture budget divisions.

(f) An additional fee of 50 percent of the registration application fee 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.

(g) A registrant must annually report to the commissioner the amount, type and annual gross sales of each registered nonagricultural 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 or approve the method for submittal of the report and may require additional information deemed necessary to determine the amount and type of nonagricultural pesticide annually distributed in the state. The information required shall include the brand name, United States Environmental Protection Agency registration number, and amount of each nonagricultural 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.

(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually report to the commissioner the amount, type, and annual gross sales of each registered agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the state for use in the state. The report must be filed by January 31 for the previous year's sales. The commissioner shall specify the form, contents, and approved electronic method for submittal of the report and may require additional information deemed necessary to determine the amount and type of agricultural pesticide annually distributed within the state or into the state. The information required must include the brand name, United States Environmental Protection Agency registration number, and amount of each agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the state.

(i) A person who registers a pesticide with the commissioner under paragraph (b), or a registrant under paragraph (d), shall keep accurate records for five years detailing all distribution or sales transactions into the state or in the state and subject to a fee and surcharge under this section.

(j) The records are subject to inspection, copying, and audit by the commissioner and must clearly demonstrate proof of payment of all applicable fees and surcharges for each registered pesticide product sold for use in this state. A person who is located outside of this state must maintain and make available records required by this subdivision in this state or pay all costs incurred by the commissioner in the inspecting, copying, or auditing of the records.

(k) The commissioner may adopt by rule regulations that require persons subject to audit under this section to provide information determined by the commissioner to be necessary to enable the commissioner to perform the audit.

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

Sec. 33.

Minnesota Statutes 2012, section 18B.305, is amended to read:

18B.305 PESTICIDE EDUCATION AND TRAINING.

Subdivision 1.

Education and training.

(a) The commissionernew text begin , as the lead agency,new text end shall develop,new text begin implement or approve, and evaluate,new text end in deleted text begin conjunctiondeleted text end new text begin consultationnew text end with deleted text begin thedeleted text end University of Minnesota Extension deleted text begin Servicedeleted text end new text begin , the Minnesota State Colleges and Universities system, and other educational institutionsnew text end , innovative educational and training programs addressing pesticide concerns including:

(1) water quality protection;

(2) endangered speciesnew text begin protectionnew text end ;

(3) new text begin minimizing new text end pesticide residues in food and water;

(4) worker protectionnew text begin and applicator safetynew text end ;

(5) chronic toxicity;

(6) integrated pest managementnew text begin and pest resistancenew text end ; deleted text begin anddeleted text end

(7) pesticide disposalnew text begin ;new text end

new text begin (8) pesticide drift; new text end

new text begin (9) relevant laws including pesticide labels and labeling and state and federal rules and regulations; and new text end

new text begin (10) current science and technology updatesnew text end .

(b) The commissioner shall appoint educational planning committees which must include representatives of industrynew text begin and applicatorsnew text end .

(c) Specific current regulatory concerns must be discussed and, if appropriate, incorporated into each training session.new text begin Relevant changes to pesticide product labels or labeling or state and federal rules and regulations may be included.new text end

(d) The commissioner may approve programs from private industrynew text begin , higher education institutions,new text end and nonprofit organizations that meet minimum requirements for education, training, and certification.

Subd. 2.

Training manual and examination development.

The commissioner, in deleted text begin conjunctiondeleted text end new text begin consultationnew text end with deleted text begin thedeleted text end University of Minnesota Extension deleted text begin Servicedeleted text end new text begin and other higher education institutionsnew text end , shall continually revise and update pesticide applicator training manuals and examinations. The manuals and examinations must be written to meet or exceed the minimum standards required by the United States Environmental Protection Agency and pertinent state specific information. Questions in the examinations must be determined by the new text begin commissioner in consultation with other new text end responsible agencies. Manuals and examinations must include pesticide management practices that discuss prevention of pesticide occurrence in deleted text begin groundwatersdeleted text end new text begin groundwater and surface waternew text end of the state.

Sec. 34.

Minnesota Statutes 2012, section 18B.316, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) A person must not deleted text begin distributedeleted text end new text begin offer for salenew text end or sell an agricultural pesticide in the state or into the state without first obtaining an agricultural pesticide dealer license.

(b) Each location or place of business from which an agricultural pesticide is deleted text begin distributeddeleted text end new text begin offered for salenew text end or sold in the state or into the state is required to have a separate agricultural pesticide dealer license.

(c) A person who is a licensed pesticide dealer under section 18B.31 is not required to also be licensed under this subdivision.

Sec. 35.

Minnesota Statutes 2012, section 18B.316, subdivision 3, is amended to read:

Subd. 3.

Resident agent.

A person required to be licensed under subdivisions 1 and 2, or a person licensed as a pesticide dealer pursuant to section 18B.31 and who operates from a location or place of business outside the state and who deleted text begin distributesdeleted text end new text begin offers for salenew text end or sells an agricultural pesticide into the state, must continuously maintain in this state the following:

(1) a registered office; and

(2) a registered agent, who may be either a resident of this state whose business office or residence is identical with the registered office under clause (1), a domestic corporation or limited liability company, or a foreign corporation of limited liability company authorized to transact business in this state and having a business office identical with the registered office.

A person licensed under this section or section 18B.31 shall annually file with the commissioner, either at the time of initial licensing or as part of license renewal, the name, address, telephone number, and e-mail address of the licensee's registered agent.

For licensees under section 18B.31 who are located in the state, the licensee is the registered agent.

Sec. 36.

Minnesota Statutes 2012, section 18B.316, subdivision 4, is amended to read:

Subd. 4.

Responsibility.

The resident agent is responsible for the acts of a licensed agricultural pesticide dealer, or of a licensed pesticide dealer under section 18B.31 who operates from a location or place of business outside the state and who deleted text begin distributesdeleted text end new text begin offers for salenew text end or sells an agricultural pesticide into the state, as well as the acts of the employees of those licensees.

Sec. 37.

Minnesota Statutes 2012, section 18B.316, subdivision 8, is amended to read:

Subd. 8.

Report of sales and payment to commissioner.

A person who is an agricultural pesticide dealer, or is a licensed pesticide dealer under section 18B.31, who deleted text begin distributesdeleted text end new text begin offers for salenew text end or sells an agricultural pesticide in or into the state, and a pesticide registrant pursuant to section 18B.26, subdivision 3, paragraph (d), shall no later than January 31 of each year report and pay applicable fees on annual gross sales of agricultural pesticides to the commissioner pursuant to requirements under section 18B.26, subdivision 3, paragraphs (c) and (h).

Sec. 38.

Minnesota Statutes 2012, section 18B.316, subdivision 9, is amended to read:

Subd. 9.

Application.

(a) A person must apply to the commissioner for an agricultural pesticide dealer license on forms and in a manner approved by the commissioner.

(b) The applicant must be the person in charge of each location or place of business from which agricultural pesticides are deleted text begin distributeddeleted text end new text begin offered for salenew text end or sold in or into the state.

(c) The commissioner may require that the applicant provide information regarding the applicant's proposed operations and other information considered pertinent by the commissioner.

(d) The commissioner may require additional demonstration of licensee qualification if the licensee has had a license suspended or revoked, or has otherwise had a history of violations in another state or violations of this chapter.

(e) A licensed agricultural pesticide dealer who changes the dealer's address or place of business must immediately notify the commissioner of the change.

(f) Beginning January 1, 2011, an application for renewal of an agricultural pesticide dealer license is complete only when a report and any applicable payment of fees under subdivision 8 are received by the commissioner.

Sec. 39.

Minnesota Statutes 2012, section 18B.37, subdivision 4, is amended to read:

Subd. 4.

deleted text begin Storage, handling,deleted text end Incident responsedeleted text begin , and disposaldeleted text end plan.

A pesticide dealer, agricultural pesticide dealer, or a commercial, noncommercial, or structural pest control deleted text begin applicator or the business that the applicator is employed bydeleted text end new text begin businessnew text end must develop and maintain deleted text begin adeleted text end new text begin an incident responsenew text end plan that describes deleted text begin its pesticide storage, handling, incident response, and disposal practicesdeleted text end new text begin the actions that will be taken to prevent and respond to pesticide incidents. The plan must contain the same information as forms provided by the commissionernew text end . The plan must be kept at a principal business site or location within this state and must be submitted to the commissioner upon request deleted text begin on forms provided by the commissioner. The plan must be available for inspection by the commissionerdeleted text end .

Sec. 40.

Minnesota Statutes 2012, section 18C.111, subdivision 4, is amended to read:

Subd. 4.

Certification of regulatory compliance.

(a) The commissioner may, under rules adopted under section 18C.121, subdivision 1, certify a person to offer or perform a regulatory compliance inspection of any person or site that stores, handles, or distributes ammonia or anhydrous ammonia fertilizer.new text begin The deadlines established in section 14.125, are extended until June 30, 2014, for rules adopted under this subdivision.new text end

(b) Pursuant to those rules, a person certified under paragraph (a) may issue a certification of compliance to an inspected person or site if the certified person documents in writing full compliance with the provisions of this chapter and rules adopted under this chapter.

(c) A person or site issued a certification of compliance must provide a copy of the certification to the commissioner immediately upon request or within 90 days following certification.

(d) Certifications of compliance are valid for a period of three years. The commissioner may determine a different time period in the interest of public safety or for other reasonable cause.

Sec. 41.

Minnesota Statutes 2012, section 18C.430, is amended to read:

18C.430 COMMERCIAL ANIMAL WASTE TECHNICIAN.

Subdivision 1.

Requirement.

(a) deleted text begin Except as provided in paragraph (c), after March 1, 2000,deleted text end A person may not manage or apply animal wastesnew text begin to the landnew text end for hire deleted text begin without a valid commercial animal waste technician license. This section does not apply to a person managing or applying animal waste on land managed by the person's employer.deleted text end new text begin :new text end

new text begin (1) without a valid commercial animal waste technician applicator license; new text end

new text begin (2) without a valid commercial animal waste technician site manager license; or new text end

new text begin (3) as a sole proprietorship, company, partnership, or corporation unless a commercial animal waste technician company license is held and a commercial animal waste technical site manager is employed by the entity. new text end

(b) A person managing or applying animal wastes for hire must have a valid license identification card when managing or applying animal wastes for hire and must display it upon demand by an authorized representative of the commissioner or a law enforcement officer. The commissioner shall prescribe the information required on the license identification card.

(c) deleted text begin A person who is not a licensed commercial animal waste technician who has had at least two hours of training or experience in animal waste management may manage or apply animal waste for hire under the supervision of a commercial animal waste technician.deleted text end new text begin A commercial animal waste technician applicator must have a minimum of two hours of certification training in animal waste management and may only manage or apply animal waste for hire under the supervision of a commercial animal waste technician site manager. The commissioner shall prescribe the conditions of the supervision and the form and format required on the certification training.new text end

new text begin (d) This section does not apply to a person managing or applying animal waste on land managed by the person's employer. new text end

Subd. 2.

Responsibility.

A person required to be licensed under this section who performs animal waste management or application for hire or who employs a person to perform animal waste management or application for compensation is responsible for proper management or application of the animal wastes.

Subd. 3.

License.

new text begin (a) new text end A commercial animal waste technician licensenew text begin , including applicator, site manager, and companynew text end :

(1) is valid for deleted text begin three yearsdeleted text end new text begin one yearnew text end and expires on December 31 of the deleted text begin thirddeleted text end year for which it is issued, unless suspended or revoked before that date;

(2) is not transferable to another person; and

(3) must be prominently displayed to the public in the commercial animal waste technician's place of business.

new text begin (b) The commercial animal waste technician company license number assigned by the commissioner must appear on the application equipment when a person manages or applies animal waste for hire. new text end

Subd. 4.

Application.

(a) A person must apply to the commissioner for a commercial animal waste technician license on forms and in the manner required by the commissioner and must include the application fee. The commissioner shall prescribe and administer an examination or equivalent measure to determine if the applicant is eligible for the commercial animal waste technician licensenew text begin , site manager license, or applicator licensenew text end .

(b) The commissioner of agriculture, in cooperation with deleted text begin thedeleted text end new text begin University of new text end Minnesota Extension deleted text begin Servicedeleted text end and appropriate educational institutions, shall establish and implement a program for training and licensing commercial animal waste technicians.

Subd. 5.

Renewal application.

new text begin (a) new text end A person must apply to the commissioner of agriculture to renew a commercial animal waste technician license and must include the application fee. The commissioner may renew a commercial animal waste technician new text begin applicator or site manager new text end license, subject to reexamination, attendance at workshops approved by the commissioner, or other requirements imposed by the commissioner to provide the animal waste technician with information regarding changing technology and to help ensure a continuing level of competence and ability to manage and apply animal wastes properly. The applicant may renew a commercial animal waste technician license within 12 months after expiration of the license without having to meet initial testing requirements. The commissioner may require additional demonstration of animal waste technician qualification if a person has had a license suspended or revoked or has had a history of violations of this section.

new text begin (b) An applicant who meets renewal requirements by reexamination instead of attending workshops must pay a fee for the reexamination as determined by the commissioner. new text end

Subd. 6.

Financial responsibility.

(a) A commercial animal waste technician license may not be issued unless the applicant furnishes proof of financial responsibility. The financial responsibility may be demonstrated by (1) proof of net assets equal to or greater than $50,000, or (2) a performance bond or insurance of the kind and in an amount determined by the commissioner of agriculture.

(b) The bond or insurance must cover a period of time at least equal to the term of the applicant's license. The commissioner shall immediately suspend the license of a person who fails to maintain the required bond or insurance.

(c) An employee of a licensed person is not required to maintain an insurance policy or bond during the time the employer is maintaining the required insurance or bond.

(d) Applications for reinstatement of a license suspended under paragraph (b) must be accompanied by proof of satisfaction of judgments previously rendered.

Subd. 7.

Application fee.

new text begin (a) new text end A person initially applying for or renewing a commercial animal waste technician new text begin applicator new text end license must pay a nonrefundable deleted text begin applicationdeleted text end fee of deleted text begin $50 and a fee of $10 for each additional identification card requested.deleted text end new text begin $25. A person initially applying for or renewing a commercial animal waste technician site manager license must pay a nonrefundable application fee of $50. A person initially applying for or renewing a commercial animal waste technician company license must pay a nonrefundable application fee of $100.new text end

new text begin (b) A license renewal application received after March 1 in the year for which the license is to be issued is subject to a penalty fee of 50 percent of the application fee. The penalty fee must be paid before the renewal license may be issued. new text end

new text begin (c) An application for a duplicate commercial animal waste technician license must be accompanied by a nonrefundable fee of $10. new text end

Sec. 42.

Minnesota Statutes 2012, section 18C.433, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

Beginning January 1, 2006, only a commercial animal waste techniciandeleted text begin ,deleted text end new text begin site manager or commercial animal waste technician applicatornew text end may apply animal waste from a feedlot that:

(1) has a capacity of 300 animal units or more; and

(2) does not have an updated manure management plan that meets the requirements of Pollution Control Agency rules.

Sec. 43.

Minnesota Statutes 2012, section 31.94, is amended to read:

31.94 COMMISSIONER DUTIES.

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

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

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

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

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

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

(b) By November 15 of each year that ends in a zero or a five, the commissioner, in conjunction with the task force created in paragraph (c), shall report on the status of organic agriculture in Minnesota to the legislative policy and finance committees and divisions with jurisdiction over agriculture. The report must include available data on organic acreage and production, available data on the sales or market performance of organic products, and recommendations regarding programs, policies, and research efforts that will benefit Minnesota's organic agriculture sector.

(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the University of Minnesota on policies and programs that will improve organic agriculture in Minnesota, including how available resources can most effectively be used for outreach, education, research, and technical assistance that meet the needs of the organic agriculture community. The task force must consist of the following residents of the state:

(1) three new text begin organic new text end farmers deleted text begin using organic agriculture methodsdeleted text end ;

(2) one wholesaler or distributor of organic products;

(3) one representative of organic certification agencies;

(4) two organic processors;

(5) one representative from University of Minnesota Extension;

(6) one University of Minnesota faculty member;

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

(8) two public members;

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

(10) one retailer of organic products; and

(11) one organic consumer representative.

The commissioner, in consultation with the director of the Minnesota Agricultural Experiment Station; the dean and director of University of Minnesota Extensiondeleted text begin ;deleted text end and the dean of the College of Food, Agricultural and Natural Resource Sciencesnew text begin ,new text end shall appoint members to serve deleted text begin staggered two-yeardeleted text end new text begin three-yearnew text end terms.

Compensation and removal of members are governed by section 15.059, subdivision 6. The task force must meet at least twice each year and expires on June 30, deleted text begin 2013deleted text end new text begin 2016new text end .

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

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

Sec. 44.

Minnesota Statutes 2012, section 41A.10, subdivision 2, is amended to read:

Subd. 2.

Cellulosic biofuel production goal.

The state cellulosic biofuel production goal is one-quarter of the total amount necessary for deleted text begin ethanoldeleted text end new text begin biofuelnew text end use required under section 239.791, subdivision deleted text begin 1adeleted text end new text begin 1new text end , by 2015 or when cellulosic biofuel facilities in the state attain a total annual production level of 60,000,000 gallons, whichever is first.

Sec. 45.

Minnesota Statutes 2012, section 41A.10, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin This section expires January 1, 2015. new text end

Sec. 46.

Minnesota Statutes 2012, section 41A.105, subdivision 1a, is amended to read:

Subd. 1a.

Definitions.

For the purpose of this section:

new text begin (1) "biobased content" means a chemical, polymer, monomer, or plastic that is not sold primarily for use as food, feed, or fuel and that has a biobased percentage of at least 51 percent as determined by testing representative samples using American Society for Testing and Materials specification D6866; new text end

new text begin (2) "biobased formulated product" means a product that is not sold primarily for use as food, feed, or fuel and that has a biobased content percentage of at least ten percent as determined by testing representative samples using American Society for Testing and Materials specification D6866, or that contains a biobased chemical constituent that displaces a known hazardous or toxic constituent previously used in the product formulation; new text end

deleted text begin (1)deleted text end new text begin (3)new text end "biobutanol facility" means a facility at which biobutanol is produced; and

deleted text begin (2)deleted text end new text begin (4)new text end "biobutanol" means fermentation isobutyl alcohol that is 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.

Sec. 47.

Minnesota Statutes 2012, section 41A.105, subdivision 3, is amended to read:

Subd. 3.

Duties.

The board shall research and report to the commissioner of agriculture and to the legislature recommendations as to how the state can invest its resources to most efficiently achieve energy independence, agricultural and natural resources sustainability, and rural economic vitality. The board shall:

(1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen, methanol, biodiesel, and ethanol within Minnesota;

new text begin (2) examine the opportunity for biobased content and biobased formulated product production at integrated biorefineries or stand alone facilities using agricultural and forestry feedstocks; new text end

deleted text begin (2)deleted text end new text begin (3)new text end develop equity grant programs to assist locally owned facilities;

deleted text begin (3)deleted text end new text begin (4)new text end study the proper role of the state in creating financing and investing and providing incentives;

deleted text begin (4)deleted text end new text begin (5)new text end evaluate how state and federal programs, including the Farm Bill, can best work together and leverage resources;

deleted text begin (5)deleted text end new text begin (6)new text end work with other entities and committees to develop a clean energy program; and

deleted text begin (6)deleted text end new text begin (7)new text end report to the legislature before February 1 each year with recommendations as to appropriations and results of past actions and projects.

Sec. 48.

Minnesota Statutes 2012, section 41A.105, subdivision 5, is amended to read:

Subd. 5.

Expiration.

This section expires June 30, deleted text begin 2014deleted text end new text begin 2015new text end .

Sec. 49.

Minnesota Statutes 2012, section 41A.12, subdivision 3, is amended to read:

Subd. 3.

Oversight.

The commissioner, in consultation with the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over agriculture finance, must allocate available funds among eligible uses, develop competitive eligibility criteria, and award funds on a needs basis.new text begin By February 1 each year, the commissioner shall report to the legislature on the allocation among eligible uses and any financial assistance provided under this section.new text end

Sec. 50.

Minnesota Statutes 2012, section 41A.12, is amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Grant awards. new text end

new text begin Grant projects may continue for up to three years. Multiyear projects must be reevaluated by the commissioner before second- and third-year funding is approved. A project is limited to one grant for its funding. new text end

Sec. 51.

Minnesota Statutes 2012, section 41B.04, subdivision 9, is amended to read:

Subd. 9.

Restructured loan agreement.

(a) For a deferred restructured loan, all payments on the primary and secondary principal, all payments of interest on the secondary principal, and an agreed portion of the interest payable to the eligible agricultural lender on the primary principal must be deferred to the end of the term of the loan.

(b) Interest on secondary principal must accrue at a below market interest rate.

(c) At the conclusion of the term of the restructured loan, the borrower owes primary principal, secondary principal, and deferred interest on primary and secondary principal. However, part of this balloon payment may be forgiven following an appraisal by the lender and the authority to determine the current market value of the real estate subject to the mortgage. If the current market value of the land after appraisal is less than the amount of debt owed by the borrower to the lender and authority on this obligation, that portion of the obligation that exceeds the current market value of the real property must be forgiven by the lender and the authority in the following order:

(1) deferred interest on secondary principal;

(2) secondary principal;

(3) deferred interest on primary principal;

(4) primary principal as provided in an agreement between the authority and the lender; and

(5) accrued but not deferred interest on primary principal.

(d) For an amortized restructured loan, payments must include installments on primary principal and interest on the primary principal. An amortized restructured loan must be amortized over a time period and upon terms to be established by the authority by rule.

(e) A borrower may prepay the restructured loan, with all primary and secondary principal and interest and deferred interest at any time deleted text begin without prepayment penaltydeleted text end .

(f) The authority may not participate in refinancing a restructured loan at the conclusion of the restructured loan.

Sec. 52.

Minnesota Statutes 2012, section 41D.01, subdivision 4, is amended to read:

Subd. 4.

Expiration.

This section expires on June 30, deleted text begin 2013deleted text end new text begin 2018new text end .

Sec. 53.

Minnesota Statutes 2012, section 116J.437, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Green economy" means products, processes, methods, technologies, or services intended to do one or more of the following:

(1) increase the use of energy from renewable sources, including through achieving the renewable energy standard established in section 216B.1691;

(2) achieve the statewide energy-savings goal established in section 216B.2401, including energy savings achieved by the conservation investment program under section 216B.241;

(3) achieve the greenhouse gas emission reduction goals of section 216H.02, subdivision 1, including through reduction of greenhouse gas emissions, as defined in section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through, but not limited to, carbon capture, storage, or sequestration;

(4) monitor, protect, restore, and preserve the quality of surface waters, including actions to further the purposes of the Clean Water Legacy Act as provided in section 114D.10, subdivision 1;

(5) expand the use of biofuels, including by expanding the feasibility or reducing the cost of producing biofuels or the types of equipment, machinery, and vehicles that can use biofuels, including activities to achieve the deleted text begin biofuels 25 by 2025 initiative in sections 41A.10, subdivision 2, and 41A.11deleted text end new text begin petroleum replacement goal in section 239.7911new text end ; or

(6) increase the use of green chemistry, as defined in section 116.9401.

For the purpose of clause (3), "green economy" includes strategies that reduce carbon emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass transit or otherwise reducing commuting for employees.

Sec. 54.

Minnesota Statutes 2012, section 223.17, is amended by adding a subdivision to read:

new text begin Subd. 7a. new text end

new text begin Bond requirements; claims. new text end

new text begin For entities licensed under this chapter and chapter 232, the bond requirements and claims against the bond are governed under section 232.22, subdivision 6a. new text end

Sec. 55.

Minnesota Statutes 2012, section 232.22, is amended by adding a subdivision to read:

new text begin Subd. 6a. new text end

new text begin Bond determinations. new text end

new text begin If a public grain warehouse operator is licensed under both this chapter and chapter 223, the warehouse shall have its bond determined by its gross annual grain purchase amount or its annual average grain storage value, whichever is greater. For those entities licensed under this chapter and chapter 223, the entire bond shall be available to any claims against the bond for claims filed under this chapter and chapter 223. new text end

Sec. 56.

Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Advanced biofuel. new text end

new text begin "Advanced biofuel" has the meaning given in Public Law 110-140, title 2, subtitle A, section 201. new text end

Sec. 57.

Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision to read:

new text begin Subd. 5a. new text end

new text begin Biofuel. new text end

new text begin "Biofuel" means a renewable fuel with an approved pathway under authority of the federal Energy Policy Act of 2005, Public Law 109-58, as amended by the federal Energy Independence and Security Act of 2007, Public Law 110–140, and approved for sale by the United States Environmental Protection Agency. The term "biofuel" includes both advanced and conventional biofuels. new text end

Sec. 58.

Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision to read:

new text begin Subd. 7a. new text end

new text begin Conventional biofuel. new text end

new text begin "Conventional biofuel" means ethanol derived from cornstarch, as defined in Public Law 110-140, title 2, subtitle A, section 201. new text end

Sec. 59.

Minnesota Statutes 2012, section 239.761, subdivision 3, is amended to read:

Subd. 3.

Gasoline.

(a) Gasoline that is not blended with deleted text begin ethanoldeleted text end new text begin biofuelnew text end must not be contaminated with water or other impurities and must comply with ASTM specification D4814-08b. Gasoline that is not blended with deleted text begin ethanoldeleted text end new text begin biofuelnew text end must also comply with the volatility requirements in Code of Federal Regulations, title 40, part 80.

(b) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal, a person responsible for the product:

(1) may blend the gasoline with agriculturally derived ethanol as provided in subdivision 4;

(2) shall not blend the gasoline with any oxygenate other than deleted text begin denatured, agriculturally derived ethanoldeleted text end new text begin biofuelnew text end ;

(3) shall not blend the gasoline with other petroleum products that are not gasoline or deleted text begin denatured, agriculturally derived ethanoldeleted text end new text begin biofuelnew text end ;

(4) shall not blend the gasoline with products commonly and commercially known as casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural gasoline; and

(5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive designed to replace tetra-ethyl lead, that is registered by the EPA.

Sec. 60.

Minnesota Statutes 2012, section 239.791, subdivision 1, is amended to read:

Subdivision 1.

Minimum deleted text begin ethanoldeleted text end new text begin biofuelnew text end content required.

(a) Except as provided in subdivisions 10 to 14, a person responsible for the product shall ensure that all gasoline sold or offered for sale in Minnesota must contain at least the quantity of deleted text begin ethanoldeleted text end new text begin biofuelnew text end required by clause (1) or (2), deleted text begin whichever is greaterdeleted text end new text begin at the option of the person responsible for the productnew text end :

(1) new text begin the greater of:new text end

new text begin (i) new text end 10.0 percent deleted text begin denatured ethanoldeleted text end new text begin conventional biofuelnew text end by volume; or

deleted text begin (2)deleted text end new text begin (ii)new text end the maximum percent of deleted text begin denatured ethanoldeleted text end new text begin conventional biofuelnew text end by volume authorized in a waiver granted by the United States Environmental Protection Agencynew text begin ; ornew text end

new text begin (2) 10.0 percent of a biofuel, other than a conventional biofuel, by volume authorized in a waiver granted by the United States Environmental Protection Agency or a biofuel formulation registered by the United States Environmental Protection Agency under United States Code, title 42, section 7545new text end .

(b) For purposes of enforcing the deleted text begin minimum ethanoldeleted text end requirement of paragraph (a), clause (1), new text begin item (i), new text end a deleted text begin gasoline/ethanoldeleted text end new text begin gasoline/biofuelnew text end blend will be construed to be in compliance if the deleted text begin ethanoldeleted text end new text begin biofuelnew text end content, exclusive of denaturants and other permitted components, comprises not less than 9.2 percent by volume and not more than 10.0 percent by volume of the blend as determined by an appropriate United States Environmental Protection Agency or American Society of Testing Materials standard method of analysis deleted text begin of alcohol/ether content in engine fuelsdeleted text end .

(c) deleted text begin The provisions of this subdivision are suspended during any period of time that subdivision 1a, paragraph (a), is in effect.deleted text end new text begin The aggregate amount of biofuel blended pursuant to this subdivision may be any biofuel; however, conventional biofuel must comprise no less than the portion specified on and after the specified dates:new text end

new text begin (1) new text end new text begin July 1, 2013 new text end new text begin 90 percent new text end
new text begin (2) new text end new text begin January 1, 2015 new text end new text begin 80 percent new text end
new text begin (3) new text end new text begin January 1, 2017 new text end new text begin 70 percent new text end
new text begin (4) new text end new text begin January 1, 2020 new text end new text begin 60 percent new text end
new text begin (5) new text end new text begin January 1, 2025 new text end new text begin no minimum new text end

Sec. 61.

Minnesota Statutes 2012, section 239.791, subdivision 2a, is amended to read:

Subd. 2a.

Federal Clean Air Act waivers; conditions.

(a) Before a waiver granted by the United States Environmental Protection Agency under deleted text begin section 211(f)(4) of the Clean Air Act,deleted text end United States Code, title 42, section 7545, deleted text begin subsection (f), paragraph (4),deleted text end may alter the minimum content level required by subdivision 1, paragraph (a), clause deleted text begin (2), or subdivision 1a, paragraph (a), clause (2)deleted text end new text begin (1), item (ii)new text end , the waiver must:

(1) apply to all gasoline-powered motor vehicles irrespective of model year; and

(2) allow for special regulatory treatment of Reid vapor pressure under Code of Federal Regulations, title 40, section 80.27, paragraph (d), for blends of gasoline and ethanol up to the maximum percent of denatured ethanol by volume authorized under the waiver.

(b) The minimum deleted text begin ethanoldeleted text end new text begin biofuelnew text end requirement in subdivision 1, paragraph (a), clause deleted text begin (2), or subdivision 1a, paragraph (a), clause (2),deleted text end new text begin (1), item (ii),new text end shall, upon the grant of the federal waiver, be effective the day after the commissioner of commerce publishes notice in the State Register. In making this determination, the commissioner shall consider the amount of time required by refiners, retailers, pipeline and distribution terminal companies, and other fuel suppliers, acting expeditiously, to make the operational and logistical changes required to supply fuel in compliance with the minimum deleted text begin ethanoldeleted text end new text begin biofuel new text end requirement.

Sec. 62.

Minnesota Statutes 2012, section 239.791, subdivision 2b, is amended to read:

Subd. 2b.

Limited liability waiver.

No motor fuel shall be deemed to be a defective product by virtue of the fact that the motor fuel is formulated or blended pursuant to the requirements of subdivision 1, paragraph (a), clause deleted text begin (2), or subdivision 1adeleted text end new text begin (1), item (ii)new text end , under any theory of liability except for simple or willful negligence or fraud. This subdivision does not preclude an action for negligent, fraudulent, or willful acts. This subdivision does not affect a person whose liability arises under chapter 115, water pollution control; 115A, waste management; 115B, environmental response and liability; 115C, leaking underground storage tanks; or 299J, pipeline safety; under public nuisance law for damage to the environment or the public health; under any other environmental or public health law; or under any environmental or public health ordinance or program of a municipality as defined in section 466.01.

Sec. 63.

Minnesota Statutes 2012, section 239.7911, is amended to read:

239.7911 PETROLEUM REPLACEMENT PROMOTION.

Subdivision 1.

Petroleum replacement goal.

The tiered petroleum replacement goal of the state of Minnesota is thatnew text begin biofuel comprises at least the specified portion of total gasoline sold or offered for sale in this state by each specified yearnew text end :

deleted text begin (1) at least 20 percent of the liquid fuel sold in the state is derived from renewable sources by December 31, 2015; and deleted text end

deleted text begin (2) at least 25 percent of the liquid fuel sold in the state is derived from renewable sources by December 31, 2025. deleted text end

new text begin (1) new text end new text begin 2015 new text end new text begin 14 percent new text end
new text begin (2) new text end new text begin 2017 new text end new text begin 18 percent new text end
new text begin (3) new text end new text begin 2020 new text end new text begin 25 percent new text end
new text begin (4) new text end new text begin 2025 new text end new text begin 30 percent new text end

Subd. 2.

Promotion of renewable liquid fuels.

(a) The commissioner of agriculture, in consultation with the commissioners of commerce and the Pollution Control Agency, shall identify and implement activities necessary deleted text begin for the widespread use of renewable liquid fuels in the statedeleted text end new text begin to achieve the goals in subdivision 1new text end . Beginning November 1, 2005, and continuing through 2015, the commissioners, or their designees, shall deleted text begin work withdeleted text end new text begin convene a task force pursuant to section 15.014 that includesnew text end representatives from the renewable fuels industry, petroleum retailers, refiners, automakers, small engine manufacturers, and other interested groupsdeleted text begin , todeleted text end new text begin . The task force shall assist the commissioners in carrying out the activities in paragraph (b) and eliminating barriers to the use of greater biofuel blends in this state. The task force must coordinate efforts with the NextGen Energy Board, the biodiesel task force, and the Renewable Energy Roundtable andnew text end develop annual recommendations for administrative and legislative action.

(b) The activities of the commissioners under this subdivision shall include, but not be limited to:

(1) developing recommendations for new text begin specific, cost-effective new text end incentives new text begin necessary to expedite the use of greater biofuel blends in this state including, but not limited to, incentives new text end for retailers to install equipment necessary deleted text begin for dispensingdeleted text end new text begin to dispensenew text end renewable liquid fuels to the public;

(2) expanding the renewable-fuel options available to Minnesota consumers by obtaining federal approval for the use of deleted text begin E20 anddeleted text end additional blends that contain a greater percentage of deleted text begin ethanol, including but not limited to E30 and E50, as gasolinedeleted text end new text begin biofuelnew text end ;

(3) developing recommendations deleted text begin for ensuringdeleted text end new text begin to ensure new text end that motor vehicles and small engine equipment have access to an adequate supply of fuel;

(4) working with the owners and operators of large corporate automotive fleets in the state to increase their use of renewable fuels; deleted text begin anddeleted text end

(5) working to maintain an affordable retail price for liquid fuelsnew text begin ;new text end

new text begin (6) facilitating the production and use of advanced biofuels in this state; and new text end

new text begin (7) developing procedures for reporting the amount and type of biofuel under subdivision 1 and section 239.791, subdivision 1, paragraph (c)new text end .

new text begin (c) Notwithstanding section 15.014, the task force required under paragraph (a) expires on December 31, 2015. new text end

Sec. 64.

Minnesota Statutes 2012, section 296A.01, is amended by adding a subdivision to read:

new text begin Subd. 8b. new text end

new text begin Biobutanol. new text end

new text begin "Biobutanol" means isobutyl alcohol produced by fermenting agriculturally generated organic material that is to be blended with gasoline and meets either: new text end

new text begin (1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline for Use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM for general distribution; or new text end

new text begin (2) in the absence of an ASTM standard specification, the following list of requirements: new text end

new text begin (i) visually free of sediment and suspended matter; new text end

new text begin (ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient temperature, whichever is higher; new text end

new text begin (iii) free of any adulterant or contaminant that can render it unacceptable for its commonly used applications; new text end

new text begin (iv) contains not less than 96 volume percent isobutyl alcohol; new text end

new text begin (v) contains not more than 0.4 volume percent methanol; new text end

new text begin (vi) contains not more than 1.0 volume percent water as determined by ASTM standard test method E203 or E1064; new text end

new text begin (vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined by ASTM standard test method D1613; new text end

new text begin (viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters as determined by ASTM standard test method D381; new text end

new text begin (ix) sulfur content of not more than 30 parts per million as determined by ASTM standard test method D2622 or D5453; and new text end

new text begin (x) contains not more than four parts per million total inorganic sulfate. new text end

Sec. 65.

Minnesota Statutes 2012, section 583.215, is amended to read:

583.215 EXPIRATION.

Sections 336.9-601, subsections (h) and (i); 550.365; 559.209; 582.039; and 583.20 to 583.32, expire June 30, deleted text begin 2013deleted text end new text begin 2016new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 66.

new text begin WASTE PESTICIDE REPORTING; 2013, 2014, AND 2015. new text end

new text begin Notwithstanding the recording and reporting requirements of Minnesota Statutes, section 18B.065, subdivision 2a, paragraph (d), persons are not required to record or report agricultural or nonagricultural waste pesticide collected after the effective date of this section in 2013, 2014, and 2015. The commissioner of agriculture shall analyze existing collection data to identify trends that will inform future collection strategies to better meet the needs and nature of current waste pesticide streams. By January 15, 2015, the commissioner shall report analysis, recommendations, and proposed policy changes to this program to legislative committees and divisions with jurisdiction over agriculture finance and policy. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 67.

new text begin POLLINATOR REPORT REQUIRED. new text end

new text begin No later than January 15, 2014, the commissioner of agriculture must submit a pollinator report to the legislative committees and divisions with jurisdiction over agriculture and natural resources. The commissioner of agriculture must develop the report in consultation with the commissioners of natural resources and the Pollution Control Agency, the Board of Water and Soil Resources, and representatives of the University of Minnesota. The report must include, but is not limited to, the following: new text end

new text begin (1) a proposal to establish a pollinator bank to preserve pollinator species diversity; new text end

new text begin (2) a proposal to efficiently and effectively create and enhance pollinator nesting and foraging habitat in this state including establishment of pollinator reserves or refuges; and new text end

new text begin (3) the process and criteria the commissioner of agriculture would use to perform a special review of neonicotinoid pesticides registered by the commissioner for use in this state currently and in the future. new text end

Sec. 68.

new text begin REVISOR'S INSTRUCTION. new text end

new text begin The revisor of statutes shall renumber Minnesota Statutes, section 18B.01, subdivision 4a, as subdivision 4b and correct any cross-references. new text end

Sec. 69.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2012, sections 18.91, subdivisions 3 and 5; 18B.07, subdivision 6; and 239.791, subdivision 1a, new text end new text begin are repealed. new text end

ARTICLE 3

ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made in this article. new text end

new text begin 2014 new text end new text begin 2015 new text end new text begin Total new text end
new text begin General new text end new text begin $ new text end new text begin 87,641,000 new text end new text begin $ new text end new text begin 92,690,000 new text end new text begin $ new text end new text begin 180,331,000 new text end
new text begin State Government Special Revenue new text end new text begin 75,000 new text end new text begin 75,000 new text end new text begin 150,000 new text end
new text begin Environmental new text end new text begin 68,836,000 new text end new text begin 68,982,000 new text end new text begin 137,818,000 new text end
new text begin Natural Resources new text end new text begin 89,906,000 new text end new text begin 89,606,000 new text end new text begin 179,512,000 new text end
new text begin Game and Fish new text end new text begin 91,372,000 new text end new text begin 91,372,000 new text end new text begin 182,744,000 new text end
new text begin Remediation new text end new text begin 10,596,000 new text end new text begin 10,596,000 new text end new text begin 21,192,000 new text end
new text begin Permanent School new text end new text begin 200,000 new text end new text begin 200,000 new text end new text begin 400,000 new text end
new text begin Total new text end new text begin $ new text end new text begin 348,626,000 new text end new text begin $ new text end new text begin 353,521,000 new text end new text begin $ new text end new text begin 702,147,000 new text end

Sec. 2.

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

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2014" and "2015" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015. "The biennium" is fiscal years 2014 and 2015. Appropriations for the fiscal year ending June 30, 2013, are effective the day following final enactment. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2014 new text end new text begin 2015 new text end

Sec. 3.

new text begin POLLUTION CONTROL AGENCY new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin 84,171,000 new text end new text begin $ new text end new text begin 84,316,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2014 new text end new text begin 2015 new text end
new text begin General new text end new text begin 4,764,000 new text end new text begin 4,763,000 new text end
new text begin State Government Special Revenue new text end new text begin 75,000 new text end new text begin 75,000 new text end
new text begin Environmental new text end new text begin 68,836,000 new text end new text begin 68,982,000 new text end
new text begin Remediation new text end new text begin 10,496,000 new text end new text begin 10,496,000 new text end

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

new text begin Subd. 2. new text end

new text begin Water new text end

new text begin 25,453,000 new text end new text begin 25,454,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin 3,737,000 new text end new text begin 3,737,000 new text end
new text begin State Government Special Revenue new text end new text begin 75,000 new text end new text begin 75,000 new text end
new text begin Environmental new text end new text begin 21,641,000 new text end new text begin 21,642,000 new text end

new text begin $1,959,000 the first year and $1,959,000 the second year are for grants to delegated counties to administer the county feedlot program under Minnesota Statutes, section 116.0711, subdivisions 2 and 3. By January 15, 2016, the commissioner shall submit a report detailing the results achieved with this appropriation to the chairs and ranking minority members at the senate and house of representatives committees and divisions with jurisdiction over environment and natural resources policy and finance. Money remaining after the first year is available for the second year. new text end

new text begin $740,000 the first year and $740,000 the second year are from the environmental fund to address the need for continued increased activity in the areas of new technology review, technical assistance for local governments, and enforcement under Minnesota Statutes, sections 115.55 to 115.58, and to complete the requirements of Laws 2003, chapter 128, article 1, section 165. new text end

new text begin $400,000 the first year and $400,000 the second year are for the clean water partnership program. Any unexpended balance in the first year does not cancel but is available in the second year. Priority shall be given to projects preventing impairments and degradation of lakes, rivers, streams, and groundwater according to Minnesota Statutes, section 114D.20, subdivision 2, clause (4). new text end

new text begin $664,000 the first year and $664,000 the second year are from the environmental fund for subsurface sewage treatment system (SSTS) program administration and community technical assistance and education, including grants and technical assistance to communities for water quality protection. Of this amount, $129,000 each year is for assistance to counties through grants for SSTS program administration. A county receiving a grant from this appropriation shall submit the results achieved with the grant to the commissioner as part of its annual SSTS report. Any unexpended balance in the first year does not cancel but is available in the second year. new text end

new text begin $105,000 the first year and $105,000 the second year are from the environmental fund for registration of wastewater laboratories. new text end

new text begin $913,000 the first year and $913,000 the second year are from the environmental fund to continue perfluorochemical biomonitoring in eastern metropolitan communities, as recommended by the Environmental Health Tracking and Biomonitoring Advisory Panel, and address other environmental health risks, including air quality. Of this amount, $812,000 the first year and $812,000 the second year are for transfer to the Department of Health. new text end

new text begin Notwithstanding Minnesota Statutes, section 16A.28, the appropriations encumbered on or before June 30, 2015, as grants or contracts for SSTS's, surface water and groundwater assessments, total maximum daily loads, storm water, and water quality protection in this subdivision are available until June 30, 2018. new text end

new text begin Subd. 3. new text end

new text begin Air new text end

new text begin 15,031,000 new text end new text begin 15,201,000 new text end
new text begin Appropriations by Fund new text end
new text begin Environmental new text end new text begin 15,031,000 new text end new text begin 15,201,000 new text end

new text begin $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. new text end

new text begin Up to $150,000 the first year and $150,000 the second year may be transferred from the environmental fund to the small business environmental improvement loan account established in Minnesota Statutes, section 116.993. new text end

new text begin $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. new text end

new text begin $210,000 the first year and $210,000 the second year are from the environmental fund for systematic, localized monitoring efforts in the state that: new text end

new text begin (1) sample ambient air for a period of one to three months at various sites; new text end

new text begin (2) analyze the samples and compare the data to the agency's fixed air monitoring sites; and new text end

new text begin (3) determine whether significant localized differences exist. new text end

new text begin The commissioner, when selecting areas to monitor, shall give priority to areas where low income, indigenous American Indians, and communities of color are disproportionately impacted by pollution from highway traffic, air traffic, and industrial sources to assist with efforts to ensure environmental justice for those areas. For the purposes of this paragraph, "environmental justice" means the fair treatment of people of all races, cultures, and income levels in the development, adoption, implementation, and enforcement of environmental laws and policies. new text end

new text begin $690,000 the first year and $690,000 the second year are from the environmental fund for emission reduction activities and grants to small businesses and other nonpoint emission reduction efforts. Any unexpended balance in the first year does not cancel but is available in the second year. new text end

new text begin Subd. 4. new text end

new text begin Land new text end

new text begin 17,412,000 new text end new text begin 17,412,000 new text end
new text begin Appropriations by Fund new text end
new text begin Environmental new text end new text begin 6,916,000 new text end new text begin 6,916,000 new text end
new text begin Remediation new text end new text begin 10,496,000 new text end new text begin 10,496,000 new text end

new text begin 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 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 management and budget that maximizes the utilization of resources and appropriately allocates the money between the two departments. This appropriation is available until June 30, 2015. new text end

new text begin $3,616,000 the first year and $3,616,000 the second year are from the remediation fund for purposes of the leaking underground storage tank program to protect the land. These same annual amounts are transferred from the petroleum tank fund to the remediation fund. new text end

new text begin $252,000 the first year and $252,000 the second year are from the remediation fund for transfer to the commissioner of health for private water supply monitoring and health assessment costs in areas contaminated by unpermitted mixed municipal solid waste disposal facilities and drinking water advisories and public information activities for areas contaminated by hazardous releases. new text end

new text begin Subd. 5. new text end

new text begin Environmental Assistance and Cross-Media new text end

new text begin 26,275,000 new text end new text begin 26,249,000 new text end
new text begin Appropriations by Fund new text end
new text begin Environmental new text end new text begin 25,248,000 new text end new text begin 25,223,000 new text end
new text begin General new text end new text begin 1,027,000 new text end new text begin 1,026,000 new text end

new text begin $14,250,000 the first year and $14,250,000 the second year are from the environmental fund for SCORE block grants to counties. new text end

new text begin $119,000 the first year and $119,000 the second year are from the environmental fund for environmental assistance grants or loans under Minnesota Statutes, section 115A.0716. Any unencumbered grant and loan balances in the first year do not cancel but are available for grants and loans in the second year. new text end

new text begin $89,000 the first year and $89,000 the second year are from the environmental fund for duties related to harmful chemicals in products under Minnesota Statutes, sections 116.9401 to 116.9407. Of this amount, $57,000 each year is transferred to the commissioner of health. new text end

new text begin $200,000 the first year and $200,000 the second year are from the environmental fund for the costs of implementing general operating permits for feedlots over 1,000 animal units. new text end

new text begin $312,000 the first year and $312,000 the second year are from the general fund and $188,000 the first year and $188,000 the second year are from the environmental fund for Environmental Quality Board operations and support. new text end

new text begin $75,000 the first year and $50,000 the second year are from the environmental fund for transfer to the Office of Administrative Hearings to establish sanitary districts. new text end

new text begin $500,000 the first year and $500,000 the second year are from the general fund for the Environmental Quality Board to lead an interagency team to provide technical assistance regarding the mining, processing, and transporting of silica sand and develop the model standards and criteria required under Minnesota Statutes, section 116C.99. The agency may transfer a portion of this appropriation to the commissioners of natural resources, health, and transportation and to the Board of Water and Soil Resources for additional costs of duties related to silica sand mining in this act. new text end

new text begin The commissioner shall prepare and submit a report to the chairs and ranking minority members of the senate and house of representatives committees and divisions with jurisdiction over the environment and natural resources by January 15, 2014, with recommendations for a statewide recycling refund program for beverage containers that achieves an 80 percent recycling rate. In preparing the report, the commissioner shall consult with stakeholders, including retailers, collectors, recyclers, local governments, and consumers on options to increase the current recycling rate. An assessment of the financial impact of any recommended program shall be included in the report. new text end

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

new text begin $315,000 the first year and $315,000 the second year are from the environmental fund for the electronic waste program under Minnesota Statutes, sections 115A.1310 to 115A.1330. new text end

new text begin Notwithstanding Minnesota Statutes, section 16A.28, the appropriations encumbered on or before June 30, 2015, as contracts or grants for surface water and groundwater assessments; environmental assistance awarded under Minnesota Statutes, section 115A.0716; 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, 2017. new text end

new text begin Subd. 6. new text end

new text begin Remediation Fund new text end

new text begin The commissioner shall transfer up to $46,000,000 from the environmental fund to the remediation fund for the purposes of the remediation fund under Minnesota Statutes, section 116.155, subdivision 2. new text end

Sec. 4.

new text begin NATURAL RESOURCES new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin 236,744,000 new text end new text begin $ new text end new text begin 241,494,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2014 new text end new text begin 2015 new text end
new text begin General new text end new text begin 61,486,000 new text end new text begin 66,536,000 new text end
new text begin Natural Resources new text end new text begin 83,586,000 new text end new text begin 83,286,000 new text end
new text begin Game and Fish new text end new text begin 91,372,000 new text end new text begin 91,372,000 new text end
new text begin Remediation new text end new text begin 100,000 new text end new text begin 100,000 new text end
new text begin Permanent School new text end new text begin 200,000 new text end new text begin 200,000 new text end

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

new text begin Subd. 2. new text end

new text begin Land and Mineral Resources Management new text end

new text begin 6,287,000 new text end new text begin 6,687,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin 1,164,000 new text end new text begin 1,564,000 new text end
new text begin Natural Resources new text end new text begin 3,472,000 new text end new text begin 3,472,000 new text end
new text begin Game and Fish new text end new text begin 1,451,000 new text end new text begin 1,451,000 new text end
new text begin Permanent School new text end new text begin 200,000 new text end new text begin 200,000 new text end

new text begin $68,000 the first year and $68,000 the second year are for minerals cooperative environmental research, of which $34,000 the first year and $34,000 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. new text end

new text begin $251,000 the first year and $251,000 the second year are for iron ore cooperative research. Of this amount, $200,000 each year is from the minerals management account in the natural resources fund. $175,000 the first year and $175,000 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 from the first year does not cancel and is available in the second year. new text end

new text begin $2,696,000 the first year and $2,696,000 the second year are from the minerals management account in the natural resources fund for use as provided in Minnesota Statutes, section 93.2236, paragraph (c), for mineral resource management, projects to enhance future mineral income, and projects to promote new mineral resource opportunities. new text end

new text begin $200,000 the first year and $200,000 the second year are from the state forest suspense account in the permanent school fund to accelerate land exchanges, land sales, and commercial leasing of school trust lands and to identify, evaluate, and lease construction aggregate located on school trust lands. This appropriation is to be used for securing long-term economic return from the school trust lands consistent with fiduciary responsibilities and sound natural resources conservation and management principles. new text end

new text begin The appropriations in Laws 2007, chapter 57, article 1, section 4, subdivision 2, as amended by Laws 2009, chapter 37, article 1, section 60, and as extended by Laws 2011, First Special Session chapter 2, article 1, section 4, subdivision 2, for support of the land records management system are available until spent. new text end

new text begin Subd. 3. new text end

new text begin Ecological and Water Resources new text end

new text begin 27,182,000 new text end new text begin 31,582,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin 12,117,000 new text end new text begin 16,817,000 new text end
new text begin Natural Resources new text end new text begin 11,002,000 new text end new text begin 10,702,000 new text end
new text begin Game and Fish new text end new text begin 4,063,000 new text end new text begin 4,063,000 new text end

new text begin $3,542,000 the first year and $3,242,000 the second year are from the invasive species account in the natural resources fund and $2,906,000 the first year and $3,206,000 the second year are from the general fund for management, public awareness, assessment and monitoring research, and water access inspection to prevent the spread of invasive species; management of invasive plants in public waters; and management of terrestrial invasive species on state-administered lands. new text end

new text begin $5,000,000 the first year and $5,000,000 the second year are from the water management account in the natural resources fund for only the purposes specified in Minnesota Statutes, section 103G.27, subdivision 2. new text end

new text begin $103,000 the first year and $103,000 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 the board's jurisdiction. new text end

new text begin $10,000 the first year and $10,000 the second year are for payment to the Leech Lake Band of Chippewa Indians to implement the band's portion of the comprehensive plan for the upper Mississippi. new text end

new text begin $264,000 the first year and $264,000 the second year are for grants for up to 50 percent of the cost of implementation of the Red River mediation agreement. The commissioner shall submit a report to the chairs of the legislative committees having primary jurisdiction over environment and natural resources policy and finance on the accomplishments achieved with the grants by January 15, 2015. new text end

new text begin $1,643,000 the first year and $1,643,000 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). new text end

new text begin $1,223,000 the first year and $1,223,000 the second year are from the nongame wildlife management account in the natural resources fund for the purpose of nongame wildlife management. Notwithstanding Minnesota Statutes, section 290.431, $100,000 the first year and $100,000 the second year may be used for nongame wildlife information, education, and promotion. new text end

new text begin $1,600,000 the first year and $6,000,000 the second year are from the general fund for the following activities: new text end

new text begin (1) increased financial reimbursement and technical support to soil and water conservation districts or other local units of government for groundwater level monitoring; new text end

new text begin (2) additional surface water monitoring and analysis, including installation of monitoring gauges; new text end

new text begin (3) additional groundwater analysis to assist with water appropriation permitting decisions; new text end

new text begin (4) additional permit application review incorporating surface water and groundwater technical analysis; new text end

new text begin (5) enhancement of precipitation data and analysis to improve the use of irrigation; new text end

new text begin (6) enhanced information technology, including electronic permitting and integrated data systems; and new text end

new text begin (7) increased compliance and monitoring. new text end

new text begin Of this amount, $600,000 the first year is for silica sand rulemaking and is available until spent. new text end

new text begin The commissioner, in cooperation with the commissioner of agriculture, shall enforce compliance with aquatic plant management requirements regulating the control of aquatic plants with pesticides and removal of aquatic plants by mechanical means under Minnesota Statutes, section 103G.615. new text end

new text begin Subd. 4. new text end

new text begin Forest Management new text end

new text begin 36,860,000 new text end new text begin 36,810,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin 24,450,000 new text end new text begin 24,400,000 new text end
new text begin Natural Resources new text end new text begin 11,123,000 new text end new text begin 11,123,000 new text end
new text begin Game and Fish new text end new text begin 1,287,000 new text end new text begin 1,287,000 new text end

new text begin $7,145,000 the first year and $7,145,000 the second year are for prevention, presuppression, and suppression costs of emergency firefighting and other costs incurred under Minnesota Statutes, section 88.12. The amount necessary to pay for presuppression and suppression costs during the biennium is appropriated from the general fund. new text end

new text begin By January 15 of each year, the commissioner of natural resources shall submit a report to the chairs and ranking minority members of the house and senate committees and divisions having jurisdiction over environment and natural resources finance, identifying all firefighting costs incurred and reimbursements received in the prior fiscal year. These appropriations may not be transferred. Any reimbursement of firefighting expenditures made to the commissioner from any source other than federal mobilizations shall be deposited into the general fund. new text end

new text begin $11,123,000 the first year and $11,123,000 the second year are from the forest management investment account in the natural resources fund for only the purposes specified in Minnesota Statutes, section 89.039, subdivision 2. new text end

new text begin $1,287,000 the first year and $1,287,000 the second year are from the heritage enhancement account in the game and fish fund to advance ecological classification systems (ECS) scientific management tools for forest and invasive species management. new text end

new text begin $580,000 the first year and $580,000 the second year are for the Forest Resources Council for implementation of the Sustainable Forest Resources Act. new text end

new text begin $250,000 the first year and $250,000 the second year are for the FORIST system. new text end

new text begin $50,000 the first year is for development of a plan and recommendations, in consultation with the University of Minnesota, Department of Forest Resources, on utilizing the state forest nurseries to: ensure the long-term availability of ecologically appropriate and genetically diverse native forest seed and seedlings to support state conservation projects and initiatives; protect the genetic fitness and resilience of native forest ecosystems; and support tree improvement research to address evolving pressures such as invasive species and climate change. By December 31, 2013, the commissioner shall submit a report with the plan and recommendations to the chairs and ranking minority members of the senate and house of representatives committees and divisions with jurisdiction over natural resources. The report shall address funding to improve state forest nursery and tree improvement capabilities. The report shall also provide updated recommendations from those contained in the budget and financial plan required under Laws 2011, First Special Session chapter 2, article 4, section 30. new text end

new text begin The general fund base budget for forest management in fiscal year 2016 and thereafter is $23,850,000. new text end

new text begin Subd. 5. new text end

new text begin Parks and Trails Management new text end

new text begin 67,802,000 new text end new text begin 67,802,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2014 new text end new text begin 2015 new text end
new text begin General new text end new text begin 19,780,000 new text end new text begin 19,780,000 new text end
new text begin Natural Resources new text end new text begin 45,763,000 new text end new text begin 45,763,000 new text end
new text begin Game and Fish new text end new text begin 2,259,000 new text end new text begin 2,259,000 new text end

new text begin $1,075,000 the first year and $1,075,000 the second year are from the water recreation account in the natural resources fund for enhancing public water access facilities and to prevent the spread of aquatic invasive species, including inspection and decontamination programs. Of the amount in the first year, $300,000 is for construction of restroom facilities at the public water access for Crane Lake on Handberg Road and is available until spent. This appropriation is not available until the commissioner develops and implements design standards and best management practices for public water access sites that maintain and improve water quality by avoiding shoreline erosion and runoff. new text end

new text begin $5,740,000 the first year and $5,740,000 the second year are from the natural resources fund for state trail, park, and recreation area operations. This appropriation is from the revenue deposited in the natural resources fund under Minnesota Statutes, section 297A.94, paragraph (e), clause (2). new text end

new text begin $1,005,000 the first year and $1,005,000 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 grants. This appropriation is from the revenue deposited in the natural resources fund under Minnesota Statutes, section 297A.94, paragraph (e), clause (4). Any unencumbered balance does not cancel at the end of the first year and is available for the second year. new text end

new text begin $8,424,000 the first year and $8,424,000 the second year are from the snowmobile trails and enforcement account in the natural resources fund for the snowmobile grants-in-aid program. Any unencumbered balance does not cancel at the end of the first year and is available for the second year. new text end

new text begin $1,460,000 the first year and $1,460,000 the second year are from the natural resources fund for the off-highway vehicle grants-in-aid program. Of this amount, $1,210,000 each year is from the all-terrain vehicle account; $150,000 each year is from the off-highway motorcycle account; and $100,000 each year is from the off-road vehicle account. Any unencumbered balance does not cancel at the end of the first year and is available for the second year. new text end

new text begin $75,000 the first year and $75,000 the second year are from the cross-country ski account in the natural resources fund for grooming and maintaining cross-country ski trails in state parks, trails, and recreation areas. new text end

new text begin $250,000 the first year and $250,000 the second year are from the state land and water conservation account (LAWCON) in the natural resources fund for priorities established by the commissioner for eligible state projects and administrative and planning activities consistent with Minnesota Statutes, section 84.0264, and the federal Land and Water Conservation Fund Act. Any unencumbered balance does not cancel at the end of the first year and is available for the second year. new text end

new text begin The appropriation in Laws 2009, chapter 37, article 1, section 4, subdivision 5, from the natural resources fund from the revenue deposited under Minnesota Statutes, section 297A.94, paragraph (e), clause (4), for local grants is available until spent. new text end

new text begin Subd. 6. new text end

new text begin Fish and Wildlife Management new text end

new text begin 62,775,000 new text end new text begin 62,775,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2014 new text end new text begin 2015 new text end
new text begin Natural Resources new text end new text begin 1,906,000 new text end new text begin 1,906,000 new text end
new text begin Game and Fish new text end new text begin 60,869,000 new text end new text begin 60,869,000 new text end

new text begin $8,167,000 the first year and $8,167,000 the second year are from the heritage enhancement account in the game and fish fund only for activities specified in Minnesota Statutes, section 297A.94, paragraph (e), clause (1). Notwithstanding Minnesota Statutes, section 297A.94, five percent of this appropriation may be used for expanding hunter and angler recruitment and retention activities that emphasize the recruitment and retention of underrepresented groups. new text end

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

new text begin Subd. 7. new text end

new text begin Enforcement new text end

new text begin 35,518,000 new text end new text begin 35,518,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin 3,975,000 new text end new text begin 3,975,000 new text end
new text begin Natural Resources new text end new text begin 10,000,000 new text end new text begin 10,000,000 new text end
new text begin Game and Fish new text end new text begin 21,443,000 new text end new text begin 21,443,000 new text end
new text begin Remediation new text end new text begin 100,000 new text end new text begin 100,000 new text end

new text begin $1,718,000 the first year and $1,718,000 the second year are from the general fund for enforcement efforts to prevent the spread of aquatic invasive species. new text end

new text begin $1,450,000 the first year and $1,450,000 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). new text end

new text begin $250,000 the first year and $250,000 the second year are for the conservation officer pre-employment education program. Of this amount, $30,000 each year is from the water recreation account, $13,000 each year is from the snowmobile account, and $20,000 each year is from the all-terrain vehicle account in the natural resources fund; and $187,000 each year is from the game and fish fund, of which $17,000 each year is from the heritage enhancement account. new text end

new text begin $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 and to prevent the spread of aquatic invasive species, including inspection and decontamination programs. Any unencumbered balance does not cancel at the end of the first year and is available for the second year. new text end

new text begin $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. Any unencumbered balance does not cancel at the end of the first year and is available for the second year. new text end

new text begin $250,000 the first year and $250,000 the second year are from the all-terrain vehicle account for grants to qualifying organizations to assist in safety and environmental education and monitoring trails on public lands under Minnesota Statutes, section 84.9011. Grants issued under this paragraph: (1) must be issued through a formal agreement with the organization; and (2) must not be used as a substitute for traditional spending by the organization. By December 15 each year, an organization receiving a grant under this paragraph shall report to the commissioner with details on expenditures and outcomes from the grant. Of this appropriation, $25,000 each year is for administration of these grants. Any unencumbered balance does not cancel at the end of the first year and is available for the second year. new text end

new text begin $510,000 the first year and $510,000 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, $498,000 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. Any unencumbered balance does not cancel at the end of the first year and is available for the second year. new text end

new text begin $720,000 the first year and $720,000 the second year are for development and maintenance of a records management system capable of providing real time data with global positioning system information. Of this amount, $360,000 each year is from the game and fish fund, and $360,000 each year is from the invasive species account in the natural resources fund. new text end

new text begin Up to $300,000 each year from the invasive species account is for grants to local units of government and tribes to prevent the spread of aquatic invasive species, including inspection and decontamination programs. new text end

new text begin Subd. 8. new text end

new text begin Operations Support new text end

new text begin 320,000 new text end new text begin 320,000 new text end
new text begin Appropriations by Fund new text end
new text begin Natural Resources new text end new text begin 320,000 new text end new text begin 320,000 new text end

new text begin $320,000 the first year and $320,000 the second year are from the natural resources fund for grants to be divided equally between the city of St. Paul for the Como Park Zoo and Conservatory and the city of Duluth for the Duluth Zoo. This appropriation is from the revenue deposited to the fund under Minnesota Statutes, section 297A.94, paragraph (e), clause (5). new text end

new text begin The commissioner may spend up to $300,000 per year from the special revenue fund to improve data analytics. The commissioner may bill the divisions of the agency an appropriate share of costs associated with this project. Any information technology development, support, or costs necessary for this project shall be incorporated into the agency's service level agreement with and paid to the Office of Enterprise Technology. new text end

Sec. 5.

new text begin BOARD OF WATER AND SOIL RESOURCES new text end

new text begin $ new text end new text begin 12,641,000 new text end new text begin $ new text end new text begin 12,641,000 new text end

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

new text begin $3,116,000 the first year and $3,116,000 the second year are for grants requested by soil and water conservation districts for general purposes, nonpoint engineering, and implementation of the reinvest in Minnesota reserve program. Upon approval of the board, expenditures may be made from these appropriations for supplies and services benefiting soil and water conservation districts. Any district requesting a grant under this paragraph shall maintain a Web page that publishes, at a minimum, its annual report, annual audit, annual budget, and meeting notices and minutes. new text end

new text begin $1,560,000 the first year and $1,560,000 the second year are for the following cost-share programs: new text end

new text begin (1) $260,000 each year is for feedlot water quality grants for feedlots under 300 animal units in areas where there are impaired waters; new text end

new text begin (2) $1,200,000 each year is for soil and water conservation district cost-sharing contracts for erosion control, nutrient and manure management, vegetative buffers, and water quality management; and new text end

new text begin (3) $100,000 each year is for county cooperative weed management programs and to restore native plants in selected invasive species management sites by providing local native seeds and plants to landowners for implementation. new text end

new text begin The board shall submit a report to the commissioner of the Pollution Control Agency on the status of subsurface sewage treatment systems in order to ensure a single, comprehensive inventory of the systems for planning purposes. new text end

new text begin $386,000 the first year and $386,000 the second year are for implementation, enforcement, and oversight of the Wetland Conservation Act. new text end

new text begin $166,000 the first year and $166,000 the second year are to provide technical assistance to local drainage management officials and for the costs of the Drainage Work Group. new text end

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

new text begin $120,000 the first year and $120,000 the second year are for grants to Area II Minnesota River Basin Projects for floodplain management. new text end

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

new text begin $125,000 the first year and $125,000 the second year are to implement internal control policies and provide related oversight and accountability for agency programs. new text end

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

Sec. 6.

new text begin METROPOLITAN COUNCIL new text end

new text begin $ new text end new text begin 8,540,000 new text end new text begin $ new text end new text begin 8,540,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2014 new text end new text begin 2015 new text end
new text begin General new text end new text begin 2,870,000 new text end new text begin 2,870,000 new text end
new text begin Natural Resources new text end new text begin 5,670,000 new text end new text begin 5,670,000 new text end

new text begin $2,870,000 the first year and $2,870,000 the second year are for metropolitan area regional parks operation and maintenance according to Minnesota Statutes, section 473.351. new text end

new text begin $5,670,000 the first year and $5,670,000 the second year are from the natural resources fund for metropolitan area regional parks and trails maintenance and operations. This appropriation is from the revenue deposited in the natural resources fund under Minnesota Statutes, section 297A.94, paragraph (e), clause (3). new text end

Sec. 7.

new text begin CONSERVATION CORPS MINNESOTA new text end

new text begin $ new text end new text begin 945,000 new text end new text begin $ new text end new text begin 945,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2014 new text end new text begin 2015 new text end
new text begin General new text end new text begin 455,000 new text end new text begin 455,000 new text end
new text begin Natural Resources new text end new text begin 490,000 new text end new text begin 490,000 new text end

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

Sec. 8.

new text begin ZOOLOGICAL BOARD new text end

new text begin $ new text end new text begin 5,585,000 new text end new text begin $ new text end new text begin 5,585,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2014 new text end new text begin 2015 new text end
new text begin General new text end new text begin 5,425,000 new text end new text begin 5,425,000 new text end
new text begin Natural Resources new text end new text begin 160,000 new text end new text begin 160,000 new text end

new text begin $160,000 the first year and $160,000 the second year are from the natural resources fund from the revenue deposited under Minnesota Statutes, section 297A.94, paragraph (e), clause (5). new text end

Sec. 9.

Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended by Laws 2010, First Special Session chapter 1, article 6, section 6, is amended to read:

Subd. 6.

Transfers In

(a) The amounts appropriated from the agency indirect costs account in the special revenue fund are reduced by $328,000 in fiscal year 2010 and $462,000 in fiscal year 2011, and those amounts must be transferred to the general fund by June 30, 2011. The appropriation reductions are onetime.

(b) The commissioner of management and budget shall transfer $48,000,000 in fiscal year 2011 from the closed landfill investment fund in Minnesota Statutes, section 115B.421, to the general fund. The commissioner shall transfer deleted text begin $12,000,000deleted text end new text begin $9,900,000new text end on July 1 deleted text begin in each of the yearsdeleted text end new text begin ,new text end 2014, deleted text begin 2015, 2016, and 2017deleted text end new text begin $12,550,000 in each of the years 2015 and 2016, and $13,000,000 in 2017new text end from the general fund to the closed landfill investment fund. For each transfer to the closed landfill investment fund, the commissioner shall determine the total amount of interest and other earnings that would have accrued to the fund if the transfers to the general fund under this paragraph had not been made and add this amount to the transfer. The amounts necessary for these transfers are appropriated from the general fund in the fiscal years specified for the transfers.

ARTICLE 4

ENVIRONMENT AND NATURAL RESOURCES STATUTORY CHANGES

Section 1.

Minnesota Statutes 2012, section 13.7411, subdivision 4, is amended to read:

Subd. 4.

Waste management.

(a) new text begin Product stewardship program. Trade secret and sales data information submitted to the Pollution Control Agency under the product stewardship program is classified under section 115A.1415.new text end

new text begin (b) new text end Transfer station data. Data received by a county or district from a transfer station under section 115A.84, subdivision 5, are classified under that section.

deleted text begin (b)deleted text end new text begin (c) new text end Solid waste records. Records of solid waste facilities received, inspected, or copied by a county pursuant to section 115A.882 are classified pursuant to section 115A.882, subdivision 3.

deleted text begin (c)deleted text end new text begin (d) new text end Customer lists. Customer lists provided to counties or cities by solid waste collectors are classified under section 115A.93, subdivision 5.

Sec. 2.

Minnesota Statutes 2012, section 84.027, is amended by adding a subdivision to read:

new text begin Subd. 19. new text end

new text begin Federal law compliance. new text end

new text begin Notwithstanding any law to the contrary, the commissioner may establish, by written order, policies for the use and operation of other power-driven mobility devices, as defined under Code of Federal Regulations, title 28, section 35.104, on lands and in facilities administered by the commissioner for the purposes of implementing the Americans with Disabilities Act, United States Code, title 42, section 12101 et seq. These policies are exempt from the rulemaking provisions of chapter 14 and section 14.386 does not apply. new text end

Sec. 3.

Minnesota Statutes 2012, section 84.415, is amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Existing road right-of-way; fee exemption. new text end

new text begin A utility license for crossing public lands or public waters is exempt from all fees specified in this section and in rules adopted under this section when the utility crossing is on an existing right-of-way of a public road. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2014. new text end

Sec. 4.

Minnesota Statutes 2012, section 84.63, is amended to read:

84.63 CONVEYANCE OF INTERESTS IN LANDS TO STATE AND FEDERAL GOVERNMENTS.

(a) Notwithstanding any existing law to the contrary, the commissioner of natural resources is hereby authorized on behalf of the state to convey to the United States or to the state of Minnesota or any of its subdivisions, upon state-owned lands under the administration of the commissioner of natural resources, permanent or temporary easements for specified periods or otherwise for trails, highways, roads including limitation of right of access from the lands to adjacent highways and roads, flowage for development of fish and game resources, stream protection, flood control, and necessary appurtenances thereto, such conveyances to be made upon such terms and conditions including provision for reversion in the event of non-user as the commissioner of natural resources may determine.

(b) In addition to the fee for the market value of the easement, the commissioner of natural resources shall assess the applicant the following fees:

(1) an application fee of $2,000 to cover reasonable costs for reviewing the application and preparing the easement; and

(2) a monitoring fee to cover the projected reasonable costs for monitoring the construction of the improvement for which the easement was conveyed and preparing special terms and conditions for the easement. The commissioner must give the applicant an estimate of the monitoring fee before the applicant submits the fee.

(c) The applicant shall pay these fees to the commissioner of natural resources. The commissioner shall not issue the easement until the applicant has paid in full the application fee, the monitoring fee, and the market value payment for the easement.

(d) Upon completion of construction of the improvement for which the easement was conveyed, the commissioner shall refund the unobligated balance from the monitoring fee revenue. The commissioner shall not return the application fee, even if the application is withdrawn or denied.

(e) Money received under paragraph (b) must be deposited in the land management account in the natural resources fund and is appropriated to the commissioner of natural resources to cover the reasonable costs incurred for issuing and monitoring easements.

new text begin (f) A county or joint county regional railroad authority is exempt from all fees specified under this section for trail easements on state-owned land. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2014. new text end

Sec. 5.

new text begin [84.633] EXCHANGE OF ROAD EASEMENTS. new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin The commissioner of natural resources, on behalf of the state, may convey a road easement according to this section for access across state land under the commissioner's jurisdiction in exchange for a road easement for access to property owned by the United States, the state of Minnesota or any of its subdivisions, or a private party. The exercise of the easement across state land must not cause significant adverse environmental or natural resources management impacts. Exchanges under this section are limited to existing access corridors. new text end

new text begin Subd. 2. new text end

new text begin Substantially equal acres. new text end

new text begin The acres covered by the state easement conveyed by the commissioner must be substantially equal to the acres covered by the easement being received by the commissioner. For purposes of this section, "substantially equal" means that the acres do not differ by more than 20 percent. The commissioner's finding of substantially equal acres is in lieu of an appraisal or other determination of value of the lands. new text end

new text begin Subd. 3. new text end

new text begin School trust lands. new text end

new text begin If the commissioner conveys a road easement over school trust land to a nongovernmental entity, the term of the road easement is limited to 50 years. The easement exchanged with the state may be limited to 50 years or may be perpetual. new text end

new text begin Subd. 4. new text end

new text begin Terms and conditions. new text end

new text begin The commissioner may impose terms and conditions of use as necessary and appropriate under the circumstances. The state may accept an easement with similar terms and conditions as the state easement. new text end

new text begin Subd. 5. new text end

new text begin Survey. new text end

new text begin If the commissioner determines that a survey is required, the governmental unit or private landowner shall pay to the commissioner a survey fee of not less than one half of the cost of the survey as determined by the commissioner. new text end

new text begin Subd. 6. new text end

new text begin Application fee. new text end

new text begin When a private landowner or governmental unit, except the state, presents to the commissioner an offer to exchange road easements, the private landowner or governmental unit shall pay an application fee as provided under section 84.63 to cover reasonable costs for reviewing the application and preparing the easements. new text end

new text begin Subd. 7. new text end

new text begin Title. new text end

new text begin If the commissioner determines it is necessary to obtain an opinion as to the title of the land being encumbered by the easement that will be received by the commissioner, the governmental unit or private landowner shall submit an abstract of title or other title information sufficient to determine possession of the land, improvements, liens, encumbrances, and other matters affecting title. new text end

new text begin Subd. 8. new text end

new text begin Disposition of fees. new text end

new text begin (a) Any fee paid under subdivision 5 must be credited to the account from which expenses are or will be paid and the fee is appropriated for the expenditures in the same manner as other money in the account. new text end

new text begin (b) Any fee paid under subdivision 6 must be deposited in the land management account in the natural resources fund and is appropriated to the commissioner to cover the reasonable costs incurred for preparing and issuing the state road easement and accepting the road easement from the private landowner or governmental entity. new text end

Sec. 6.

Minnesota Statutes 2012, section 84.82, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Nontrail use registration. new text end

new text begin A snowmobile may be registered for nontrail use. A snowmobile registered under this subdivision may not be operated on a state or grant-in-aid snowmobile trail. The fee for a nontrail use registration is $45 for three years. A nontrail use registration is not transferable. In addition to other penalties prescribed by law, the penalty for violation of this subdivision is immediate revocation of the nontrail use registration. The commissioner shall ensure that the registration sticker provided for limited nontrail use is of a different color and is distinguishable from other snowmobile registration and state trail stickers provided. new text end

Sec. 7.

Minnesota Statutes 2012, section 84.82, subdivision 3, is amended to read:

Subd. 3.

Fees for registration.

(a) The fee for registration of each snowmobile, other than those used for an agricultural purpose, as defined in section 84.92, subdivision 1c, deleted text begin ordeleted text end those registered by a dealer or manufacturer pursuant to paragraph (b) or (c)new text begin , or those registered under subdivision 2anew text end shall be as follows: $75 for three years and $10 for a duplicate or transfer.

(b) The total registration fee for all snowmobiles owned by a dealer and operated for demonstration or testing purposes shall be $50 per year.

(c) The total registration fee for all snowmobiles owned by a manufacturer and operated for research, testing, experimentation, or demonstration purposes shall be $150 per year. Dealer and manufacturer registrations are not transferable.

(d) The onetime fee for registration of an exempt snowmobile under subdivision 6a is $6.

Sec. 8.

Minnesota Statutes 2012, section 84.8205, subdivision 1, is amended to read:

Subdivision 1.

Sticker required; fee.

(a) A snowmobile that is not registered in the statenew text begin under section 84.82, subdivision 3, paragraph (a),new text end or that is registered by a manufacturer or dealer under section 84.82, subdivision 3, paragraph (b) or (c), may not be operated on a state or grant-in-aid snowmobile trail unless a snowmobile state trail sticker is affixed to the snowmobile.

(b) The commissioner of natural resources shall issue a sticker upon application and payment of a fee. The fee is:

(1) $35 for a one-year snowmobile state trail sticker purchased by an individual; and

(2) $15 for a one-year snowmobile state trail sticker purchased by a dealer or manufacturer.

(c) In addition to other penalties prescribed by law, an individual in violation of this subdivision must purchase an annual state trail sticker for a fee of $70. The sticker is valid from November 1 through June 30. Fees collected under this section, except for the issuing fee for licensing agents, shall be deposited in the state treasury and credited to the snowmobile trails and enforcement account in the natural resources fund and, except for the electronic licensing system commission established by the commissioner under section 84.027, subdivision 15, must be used for grants-in-aid, trail maintenance, grooming, and easement acquisition.

(d) A state trail sticker is not required under this section for:

(1) a snowmobile that is owned and used by the United States, an Indian tribal government, another state, or a political subdivision thereof that is exempt from registration under section 84.82, subdivision 6;

(2) a collector snowmobile that is operated as provided in a special permit issued for the collector snowmobile under section 84.82, subdivision 7a;

(3) a person operating a snowmobile only on the portion of a trail that is owned by the person or the person's spouse, child, or parent; or

(4) a snowmobile while being used to groom a state or grant-in-aid trail.

Sec. 9.

Minnesota Statutes 2012, section 84.922, is amended by adding a subdivision to read:

new text begin Subd. 13. new text end

new text begin No registration weekend. new text end

new text begin The commissioner shall designate, by written order published in the State Register, one weekend each year when, notwithstanding subdivision 1, an all-terrain vehicle may be operated on state and grant-in-aid all-terrain vehicle trails without a registration issued under this section. Nonresidents may participate during the designated weekend without a state trail pass required under section 84.9275. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2012, section 84.9256, subdivision 1, is amended to read:

Subdivision 1.

Prohibitions on youthful operators.

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

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

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

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

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

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

(d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years old, but less than deleted text begin 16deleted text end new text begin 18new text end years old, must:

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

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

(e) A person at least 11 years of age may take the safety education and training program and may receive an all-terrain vehicle safety certificate under paragraph (d), but the certificate is not valid until the person reaches age 12.

(f) A person at least ten years of age but under 12 years of age may operate an all-terrain vehicle with an engine capacity up to 90cc on public lands or waters if accompanied by a parent or legal guardian.

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

(h) A person under the age of 16 may not operate an all-terrain vehicle on public lands or waters or on state or grant-in-aid trails if the person cannot properly reach and control the handle bars and reach the foot pegs while sitting upright on the seat of the all-terrain vehicle.

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

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

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

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

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

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

Sec. 11.

Minnesota Statutes 2012, 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 84.928, 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.

(b) A person may operate a class 1 all-terrain vehicle in the ditch or the outside bank or slope of a trunk, county state-aid, or county highway unless prohibited under paragraph (d) or (f).

(c) A person may operate a class 2 all-terrain vehiclenew text begin :new text end

new text begin (1) new text end within the public road right-of-way of a county state-aid or county highway 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, unless prohibited under paragraph (d) or (f)deleted text begin . A person may operate a class 2 all-terrain vehicledeleted text end new text begin ;new text end

new text begin (2) on the bank, slope, or ditch of a public road right-of-way of a trunk, county state-aid, or county highway but only to access businesses or make trail connections, and left turns may be made from any part of the road if it is safe to do so under the prevailing conditions, unless prohibited under paragraph (d) or (f); and new text end

new text begin (3)new text end on the bank or ditch of a public road right-of-way on a designated class 2 all-terrain vehicle trail.

(d) 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 public road right-of-way under its jurisdiction.

(e) The restrictions in paragraphs (a), (d), (h), (i), and (j) do not apply to the operation of an all-terrain vehicle on the shoulder, inside bank or slope, ditch, or outside bank or slope of a trunk, interstate, county state-aid, or county highway:

(1) that is part of a funded grant-in-aid trail; or

(2) when the all-terrain vehicle is owned by or operated under contract with a publicly or privately owned utility or pipeline company and used for work on utilities or pipelines.

(f) 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.

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.

(g) 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.

(h) 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.

(i) 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.

(j) 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. 12.

new text begin [84.973] POLLINATOR HABITAT PROGRAM. new text end

new text begin (a) The commissioner shall develop best management practices and habitat restoration guidelines for pollinator habitat enhancement. Best management practices and guidelines developed under this section must be used for all habitat enhancement or restoration of lands under the commissioner's control. new text end

new text begin (b) Prairie restorations conducted on state lands or with state funds must include an appropriate diversity of native species selected to provide habitat for pollinators throughout the growing season. new text end

Sec. 13.

Minnesota Statutes 2012, section 84D.108, subdivision 2, is amended to read:

Subd. 2.

Permit requirements.

(a) Service providers must complete invasive species training provided by the commissioner and pass an examination to qualify for a permit. Service provider permits are valid for three calendar years.

(b) A $50 application and testing fee is required for service provider permit applications.

(c) Persons working for a permittee must satisfactorily complete aquatic invasive species-related training provided by the commissionernew text begin , except as provided under paragraph (d)new text end .

new text begin (d) A person working for and supervised by a permittee is not required to complete the training under paragraph (c) if the water-related equipment or other water-related structures remain on the riparian property owned or controlled by the permittee and are only removed from and placed into the same water of the state. new text end

Sec. 14.

Minnesota Statutes 2012, section 85.015, subdivision 13, is amended to read:

Subd. 13.

Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton, Koochiching, and Itasca Counties.

(a)(1) The Taconite Trail shall originate at Ely in St. Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in Itasca County and there terminate;

(2) The C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand Marais in Cook County, thence northeasterly to the international boundary in the vicinity of the north shore of Lake Superior, and there terminate;

(3) The Grand Marais to International Falls Trail shall originate in Grand Marais in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area, to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St. Louis County to International Falls in Koochiching County, and there terminate;

(4) The Matthew Lourey Trail shall originate in Duluth in St. Louis County and extend southerly to deleted text begin St. Croixdeleted text end new text begin Chengwatananew text end State Forest in Pine County.

(b) The trails shall be developed primarily for riding and hiking.

(c) In addition to the authority granted in subdivision 1, lands and interests in lands for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring any land or interest in land by eminent domain the commissioner of administration shall obtain the approval of the governor. The governor shall consult with the Legislative Advisory Commission before granting approval. Recommendations of the Legislative Advisory Commission shall be advisory only. Failure or refusal of the commission to make a recommendation shall be deemed a negative recommendation.

Sec. 15.

Minnesota Statutes 2012, section 85.052, subdivision 6, is amended to read:

Subd. 6.

State park reservation system.

new text begin (a) new text end The commissioner may, by written order, develop reasonable reservation policies for campsites and other lodging. These policies are exempt from rulemaking provisions under chapter 14 and section 14.386 does not apply.

new text begin (b) The revenue collected from the state park reservation fee established under subdivision 5, including interest earned, shall be deposited in the state park account in the natural resources fund and is annually appropriated to the commissioner for the cost of the state park reservation system. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from March 1, 2012. new text end

Sec. 16.

Minnesota Statutes 2012, section 85.053, subdivision 8, is amended to read:

Subd. 8.

Military personnel deleted text begin on leavedeleted text end ; exemption.

(a) A one-day permit, under subdivision 4, shall be issued without a fee for a motor vehicle being used by a person who is serving in active military service in any branch or unit of the United States armed forces and who is stationed outside Minnesota, during the period of active service and for 90 days immediately thereafter, if the person presents the person's current military orders to the park attendant on duty or other designee of the commissioner.

(b) For purposes of this section, "active service" has the meaning given under section 190.05, subdivision 5c, when performed outside Minnesota.

new text begin (c) A permit is not required for a motor vehicle being used by military personnel or their dependents who have in their possession the annual pass for United States military and their dependents issued by the federal government for access to federal recreation sites. new text end

Sec. 17.

Minnesota Statutes 2012, section 85.054, is amended by adding a subdivision to read:

new text begin Subd. 18. new text end

new text begin La Salle Lake State Recreation Area. new text end

new text begin A state park permit is not required and a fee may not be charged for motor vehicle entry, use, or parking in La Salle Lake State Recreation Area unless the occupants of the vehicle enter, use, or park in a developed campground, overnight, or day-use area. new text end

Sec. 18.

Minnesota Statutes 2012, 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 $25;

(2) a second or subsequent vehicle state park permit is $18;

(3) a state park permit valid for one day is $5;

(4) a daily vehicle state park permit for groups is $3;

(5) an annual permit for motorcycles is $20;

(6) an employee's state park permit is without charge; and

(7) a state park permit for deleted text begin disableddeleted text end persons new text begin with disabilitiesnew text end under section 85.053, subdivision 7, clauses (1) deleted text begin and (2)deleted text end new text begin to (3)new text end , is $12.

The fees specified in this subdivision include any sales tax required by state law.

Sec. 19.

Minnesota Statutes 2012, section 85.055, subdivision 2, is amended to read:

Subd. 2.

Fee deposit and appropriation.

The fees collected under this section shall be deposited in the natural resources fund and credited to the state parks account. Money in the account, except for the electronic licensing system commission established by the commissioner under section 84.027, subdivision 15,new text begin and the state park reservation system fee established by the commissioner under section 85.052, subdivisions 5 and 6,new text end is available for appropriation to the commissioner to operate and maintain the state park system.

Sec. 20.

Minnesota Statutes 2012, section 85.42, is amended to read:

85.42 USER FEE; VALIDITY.

(a) The fee for an annual cross-country ski pass is $19 for an individual age 16 and over. The fee for a three-year pass is $54 for an individual age 16 and over. This fee shall be collected at the time the pass is purchased. Three-year passes are valid for three years beginning the previous July 1. Annual passes are valid for one year beginning the previous July 1.

(b) The cost for a daily cross-country skier pass is $5 for an individual age 16 and over. This fee shall be collected at the time the pass is purchased. The daily pass is valid only for the date designated on the pass form.

(c) A pass must be signed by the skier across the front of the pass to be valid and becomes nontransferable on signing.

new text begin (d) The commissioner and agents shall issue a duplicate pass to a person whose pass is lost or destroyed, using the process established under section 97A.405, subdivision 3, and rules adopted thereunder. The fee for a duplicate cross-country ski pass is $2. new text end

Sec. 21.

Minnesota Statutes 2012, section 89.0385, is amended to read:

89.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST CERTIFICATION.

(a) deleted text begin After each fiscal year,deleted text end The commissioner shall certify the total costs incurred for forest management, forest improvement, and road improvement on state-managed lands during deleted text begin thatdeleted text end new text begin each fiscalnew text end year. The commissioner shall distribute forest management receipts credited to various accounts according to this section.

(b) The amount of the certified costs incurred for forest management activities on state lands shall be transferred from the account where receipts are deposited to the forest management investment account in the natural resources fund, except for those costs certified under section 16A.125. new text begin Transfers may occur quarterly, based on quarterly cost and revenue reports, throughout the fiscal year, with final certification and reconciliation after each fiscal year. new text end Transfers in a fiscal year cannot exceed receipts credited to the account.

Sec. 22.

Minnesota Statutes 2012, section 90.01, subdivision 4, is amended to read:

Subd. 4.

Scaler.

"Scaler" means a qualified bonded person designated by the commissioner to measure new text begin timber and new text end cut forest products.

Sec. 23.

Minnesota Statutes 2012, section 90.01, subdivision 5, is amended to read:

Subd. 5.

State appraiser.

"State appraiser" means an employee of the department designated by the commissioner to appraise state landsnew text begin , which includes, but is not limited to, timber and other forest resource products, for volume, quality, and valuenew text end .

Sec. 24.

Minnesota Statutes 2012, section 90.01, subdivision 6, is amended to read:

Subd. 6.

Timber.

"Timber" means treesnew text begin , shrubs, or woody plants,new text end that will produce forest products of value whether standing or down, and including but not limited to logs, new text begin sawlogs, new text end posts, poles, bolts, pulpwood, cordwood, new text begin fuelwood, woody biomass, new text end lumbernew text begin ,new text end and new text begin woody new text end decorative material.

Sec. 25.

Minnesota Statutes 2012, section 90.01, subdivision 8, is amended to read:

Subd. 8.

Permit holder.

"Permit holder" means the person deleted text begin holdingdeleted text end new text begin who is the signatory ofnew text end a permit to cut timber on state lands.

Sec. 26.

Minnesota Statutes 2012, section 90.01, subdivision 11, is amended to read:

Subd. 11.

Effective permit.

"Effective permit" means a permit for which the commissioner has on file full or partial deleted text begin suretydeleted text end new text begin securitynew text end as required by section 90.161deleted text begin ,deleted text end new text begin ornew text end 90.162deleted text begin , 90.163, or 90.173deleted text end or, in the case of permits issued according to section 90.191 or 90.195, the commissioner has received a down payment equal to the full appraised value.

Sec. 27.

Minnesota Statutes 2012, section 90.031, subdivision 4, is amended to read:

Subd. 4.

Timber rules.

The Executive Council may formulate and establish, from time to time, rules it deems advisable for the transaction of timber business of the state, including approval of the sale of timber on any tract in a lot exceeding deleted text begin 6,000deleted text end new text begin 12,000new text end cords in volume when the sale is in the best interests of the state, and may abrogate, modify, or suspend rules at its pleasure.

Sec. 28.

Minnesota Statutes 2012, section 90.041, subdivision 2, is amended to read:

Subd. 2.

Trespass on state lands.

The commissioner may compromise and settle, with deleted text begin the approval ofdeleted text end new text begin notification tonew text end the attorney general, upon terms the commissioner deems just, any claim of the state for casual and involuntary trespass upon state lands or timber; provided that no claim shall be settled for less than the full value of all timber or other materials taken in casual trespass or the full amount of all actual damage or loss suffered by the state as a result. new text begin Upon request, new text end the commissioner shall advise the Executive Council of any information acquired by the commissioner concerning any trespass on state lands, giving all details and names of witnesses and all compromises and settlements made under this subdivision.

Sec. 29.

Minnesota Statutes 2012, section 90.041, subdivision 5, is amended to read:

Subd. 5.

Forest improvement contracts.

The commissioner may contract as part of the timber sale with the purchaser of state timber at either informal or auction sale for deleted text begin the followingdeleted text end forest improvement work to be done on the land included within the sale areadeleted text begin :deleted text end new text begin . Forest improvement work may include activities relating tonew text end preparation of the site for seeding or planting of seedlings or trees, seeding or planting of seedlings or trees, and other activities deleted text begin relatingdeleted text end new text begin relatednew text end to forest regenerationnew text begin or deemed necessary by the commissioner to accomplish forest management objectives, including those related to water quality protection, trail development, and wildlife habitat enhancementnew text end . A contract issued under this subdivision is not subject to the competitive bidding provisions of chapter 16C and is exempt from the contract approval provisions of section 16C.05, subdivision 2.new text begin The bid value received in the sale of the timber and the contract bid cost of the improvement work may be combined and the total value may be considered by the commissioner in awarding forest improvement contracts under this section. The commissioner may refuse to accept any and all bids received and cancel a forest improvement contract sale for good and sufficient reasons.new text end

Sec. 30.

Minnesota Statutes 2012, section 90.041, subdivision 6, is amended to read:

Subd. 6.

Sale of damaged timber.

The commissioner may sell at public auction timber that has been damaged by fire, windstorm, flood, new text begin insect, disease, new text end or other natural cause on notice that the commissioner considers reasonable when there is a high risk that the salvage value of the timber would be lost.

Sec. 31.

Minnesota Statutes 2012, section 90.041, subdivision 9, is amended to read:

Subd. 9.

Reoffering unsold timber.

deleted text begin To maintain and enhance forest ecosystems on state forest lands,deleted text end The commissioner may reoffer timber tracts remaining unsold under the provisions of section 90.101 below appraised value at public auction with the required 30-day notice under section 90.101, subdivision 2.

Sec. 32.

Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Fees. new text end

new text begin (a) The commissioner may establish a fee schedule that covers the commissioner's cost of issuing, administering, and processing various permits, permit modifications, transfers, assignments, amendments, and other transactions necessary to the administration of activities under this chapter. new text end

new text begin (b) A fee established under this subdivision is not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply. The commissioner may establish fees under this subdivision notwithstanding section 16A.1283. new text end

Sec. 33.

Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Debarment. new text end

new text begin The commissioner may debar a permit holder if the holder is convicted in Minnesota at the gross misdemeanor or felony level of criminal willful trespass, theft, fraud, or antitrust violation involving state, federal, county, or privately owned timber in Minnesota or convicted in any other state involving similar offenses and penalties for timber owned in that state. The commissioner shall cancel and repossess the permit directly involved in the prosecution of the crime. The commissioner shall cancel and repossess all other state timber permits held by the permit holder after taking from all security deposits money to which the state is entitled. The commissioner shall return the remainder of the security deposits, if any, to the permit holder. The debarred permit holder is prohibited from bidding, possessing, or being employed on any state timber permit during the period of debarment. The period of debarment is not less than one year or greater than three years. The duration of the debarment is based on the severity of the violation, past history of compliance with timber permits, and the amount of loss incurred by the state arising from violations of timber permits. new text end

Sec. 34.

Minnesota Statutes 2012, section 90.045, is amended to read:

90.045 APPRAISAL STANDARDS.

By July 1, 1983, the commissioner shall establish specific timber appraisal standards according to which all timber appraisals will be conducted under this chapter. The standards shall include a specification of the maximum allowable appraisal sampling error, deleted text begin anddeleted text end new text begin includingnew text end the procedures for tree defect allowance, tract area estimation, product volume estimation, and product value determination. The timber appraisal standards shall be included in each edition of the timber sales manual published by the commissioner. In addition to the duties pursuant to section 90.061, every state appraiser shall work within the guidelines of the timber appraisal standards. The standards shall not be subject to the rulemaking provisions of chapter 14.

Sec. 35.

Minnesota Statutes 2012, section 90.061, subdivision 8, is amended to read:

Subd. 8.

Appraiser authority; form of documents.

State appraisers are empowered, with the consent of the commissioner, to perform any scaling, and generally to supervise the cutting and removal of timber new text begin and forest products new text end on or from state lands so far as may be reasonably necessary to insure compliance with the terms of the permits or other contracts governing the same and protect the state from loss.

The form of appraisal reports, records, and notes to be kept by state appraisers shall be as the commissioner prescribes.

Sec. 36.

Minnesota Statutes 2012, section 90.101, subdivision 1, is amended to read:

Subdivision 1.

Sale requirements.

The commissioner may sell the timber on any tract of state land and may determine the number of sections or fractional sections of land to be included in the permit area covered by any one permit issued to the purchaser of timber on state lands, or in any one contract or other instrument relating thereto. No timber shall be sold, except (1) to the highest responsible bidder at public auction, or (2) if unsold at public auctionnew text begin ,new text end the commissioner may offer the timber for private sale for a period of no more than deleted text begin six monthsdeleted text end new text begin one yearnew text end after the public auction to any deleted text begin persondeleted text end new text begin responsible biddernew text end who pays the appraised value for the timber. The minimum price shall be the appraised value as fixed by the report of the state appraiser. Sales may include tracts in more than one contiguous county or forestry administrative area and shall be held either in the county or forestry administrative area in which the tract is located or in an adjacent county or forestry administrative area that is nearest the tract offered for sale or that is most accessible to potential bidders. In adjoining counties or forestry administrative areas, sales may not be held less than two hours apart.

Sec. 37.

Minnesota Statutes 2012, section 90.121, is amended to read:

90.121 INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000 CORDS.

(a) The commissioner may sell the timber on any tract of state land in lots not exceeding 3,000 cords in volume, in the same manner as timber sold at public auction under section 90.101, and related laws, subject to the following special exceptions and limitations:

(1) the commissioner shall offer all tracts authorized for sale by this section separately from the sale of tracts of state timber made pursuant to section 90.101;

(2) no bidder may be awarded more than 25 percent of the total tracts offered at the first round of bidding unless fewer than four tracts are offered, in which case not more than one tract shall be awarded to one bidder. Any tract not sold at public auction may be offered for private sale as authorized by section 90.101, subdivision 1, new text begin 30 days after the auction new text end to deleted text begin personsdeleted text end new text begin responsible biddersnew text end eligible under this section at the appraised value; and

(3) no sale may be made to a deleted text begin persondeleted text end new text begin responsible biddernew text end having more than 30 employees. For the purposes of this clause, "employee" means an individual working in the timber or wood products industry for salary or wages on a full-time or part-time basis.

(b) The auction sale procedure set forth in this section constitutes an additional alternative timber sale procedure available to the commissioner and is not intended to replace other authority possessed by the commissioner to sell timber in lots of 3,000 cords or less.

(c) Another bidder or the commissioner may request that the number of employees a bidder has pursuant to paragraph (a), clause (3), be confirmed new text begin by signed affidavit new text end if there is evidence that the bidder may be ineligible due to exceeding the employee threshold. The commissioner shall request information from the commissioners of labor and industry and employment and economic development including the premiums paid by the bidder in question for workers' compensation insurance coverage for all employees of the bidder. The commissioner shall review the information submitted by the commissioners of labor and industry and employment and economic development and make a determination based on that information as to whether the bidder is eligible. A bidder is considered eligible and may participate in intermediate auctions until determined ineligible under this paragraph.

Sec. 38.

Minnesota Statutes 2012, section 90.145, is amended to read:

90.145 PURCHASER QUALIFICATIONS deleted text begin ANDdeleted text end new text begin ,new text end REGISTRATIONnew text begin , AND REQUIREMENTSnew text end .

Subdivision 1.

Purchaser deleted text begin qualificationsdeleted text end new text begin requirementsnew text end .

(a) In addition to any other requirements imposed by this chapter, the purchaser of a state timber permit issued under section 90.151 must meet the requirements in paragraphs (b) to deleted text begin (d)deleted text end new text begin (e)new text end .

(b) The purchaser deleted text begin anddeleted text end new text begin ornew text end the purchaser's agents, employees, subcontractors, and assigns new text begin conducting logging operations on the timber permit new text end must comply with general industry safety standards for logging adopted by the commissioner of labor and industry under chapter 182. The commissioner of natural resources deleted text begin shalldeleted text end new text begin maynew text end require a purchaser to provide proof of compliance with the general industry safety standards.

(c) The purchaser deleted text begin anddeleted text end new text begin ornew text end the purchaser's agents, subcontractors, and assigns new text begin conducting logging operations on the timber permit new text end must comply with the mandatory insurance requirements of chapter 176. The commissioner deleted text begin shalldeleted text end new text begin maynew text end require a purchaser to provide a copy of the proof of insurance required by section 176.130 before the start of harvesting operations on any permit.

(d) Before the start of harvesting operations on any permit, the purchaser must certify that a foreperson or other designated employee who has a current certificate of completionnew text begin ,new text end new text begin which includes instruction in site-level forest management guidelines or best management practices, new text end from the Minnesota Logger Education Program (MLEP), the Wisconsin Forest Industry Safety and Training Alliance (FISTA), or any similar new text begin continuous education new text end program acceptable to the commissioner, is supervising active logging operations.

new text begin (e) The purchaser and the purchaser's agents, employees, subcontractors, and assigns who will be involved with logging or scaling state timber must be in compliance with this chapter. new text end

Subd. 2.

Purchaser deleted text begin preregistrationdeleted text end new text begin registrationnew text end .

To facilitate the sale of permits issued under section 90.151, the commissioner may establish a deleted text begin purchaser preregistrationdeleted text end new text begin registration new text end systemnew text begin to verify the qualifications of a person as a responsible bidder to purchase a timber permitnew text end . Any system implemented by the commissioner shall be limited in scope to only that information that is required for the efficient administration of the purchaser qualification deleted text begin provisionsdeleted text end new text begin requirements new text end of this chapter deleted text begin and shall conform with the requirements of chapter 13.deleted text end new text begin The registration system established under this subdivision is not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.new text end

Sec. 39.

Minnesota Statutes 2012, section 90.151, subdivision 1, is amended to read:

Subdivision 1.

Issuance; expiration.

(a) Following receipt of the down payment for state timber required under section 90.14 or 90.191, the commissioner shall issue a numbered permit to the purchaser, in a form approved by the attorney general, by the terms of which the purchaser shall be authorized to enter upon the land, and to cut and remove the timber therein described as designated for cutting in the report of the state appraiser, according to the provisions of this chapter. The permit shall be correctly dated and executed by the commissioner and signed by the purchaser. If a permit is not signed by the purchaser within deleted text begin 60deleted text end new text begin 45new text end days from the date of purchase, the permit cancels and the down payment for timber required under section 90.14 forfeits to the state. The commissioner may grant an additional period for the purchaser to sign the permit, not to exceed deleted text begin fivedeleted text end new text begin tennew text end business days, provided the purchaser pays a deleted text begin $125deleted text end new text begin $200new text end penalty fee.

(b) The permit shall expire no later than five years after the date of sale as the commissioner shall specify or as specified under section 90.191, and the timber shall be cut new text begin and removed new text end within the time specified therein. deleted text begin All cut timber, equipment, and buildings not removed from the land within 90 days after expiration of the permit shall become the property of the state.deleted text end new text begin If additional time is needed, the permit holder must request, prior to the expiration date, and may be granted, for good and sufficient reasons, up to 90 additional days for the completion of skidding, hauling, and removing all equipment and buildings. All cut timber, equipment, and buildings not removed from the land after expiration of the permit becomes the property of the state.new text end

(c) The commissioner may grant an additional period of time not to exceed deleted text begin 120deleted text end new text begin 240new text end days for the removal of cut timber, equipment, and buildings upon receipt of deleted text begin suchdeleted text end new text begin a writtennew text end request by the permit holder for good and sufficient reasons. deleted text begin The commissioner may grant a second period of time not to exceed 120 days for the removal of cut timber, equipment, and buildings upon receipt of a request by the permit holder for hardship reasons only.deleted text end new text begin The permit holder may combine in the written request under this paragraph the request for additional time under paragraph (b).new text end

Sec. 40.

Minnesota Statutes 2012, section 90.151, subdivision 2, is amended to read:

Subd. 2.

Permit requirements.

The permit shall state the amount of timber estimated for cutting on the land, the estimated value thereof, and the price at which it is sold new text begin in units of new text end per thousand feet, per cord, per piece, new text begin per ton, new text end or by whatever description sold, and shall specify that all landings of cut products shall be legibly marked with the assigned permit number. The permit shall provide for the continuous identification new text begin and control new text end of the cut timber from the time of cutting until delivery to the consumer. The permit shall provide that failure to continuously identify the timber as specified in the permit constitutes trespass.

Sec. 41.

Minnesota Statutes 2012, section 90.151, subdivision 3, is amended to read:

Subd. 3.

Security provisions.

The permit shall contain such provisions as may be necessary to secure to the state the title of all timber cut thereunder wherever found until full payment therefor and until all provisions of the permit have been fully complied with. The permit shall provide that from the date deleted text begin the same becomes effectivedeleted text end new text begin cutting commencesnew text end until the expiration deleted text begin thereofdeleted text end new text begin of the permitnew text end , including all extensions, the purchaser and successors in interest shall be liable to the state for the full permit price of all timber covered thereby, notwithstanding any subsequent damage or injury thereto or trespass thereon or theft thereof, and without prejudice to the right of the state to pursue such timber and recover the value thereof anywhere prior to the payment therefor in full to the state. new text begin If an effective permit is forfeited prior to any cutting activity, the purchaser is liable to the state for a sum equal to the down payment and bid guarantee. new text end Upon recovery from any person other than the permit holder, the permit holder shall be deemed released to the extent of the net amount, after deducting all expenses of collecting same, recovered by the state from such other person.

Sec. 42.

Minnesota Statutes 2012, section 90.151, subdivision 4, is amended to read:

Subd. 4.

Permit terms.

new text begin Once a permit becomes effective and cutting commences, the permit holder is liable to the state for the permit price for all timber required to be cut, including timber not cut. new text end The permit shall provide that all timber sold or designated for cutting shall be cut deleted text begin withoutdeleted text end new text begin in such a manner so as not to causenew text end damage to other timber; that the permit holder shall remove all timber authorized new text begin and designated new text end to be cut under the permit; that timber sold by deleted text begin boarddeleted text end measure new text begin identified in the permit, new text end but later determined by the commissioner not to be convertible into deleted text begin boarddeleted text end new text begin the permit's new text end measurenew text begin ,new text end shall be paid for by the piece or cord or other unit of measure according to the size, species, or value, as may be determined by the commissioner;new text begin andnew text end that all timber products, except as specified by the commissioner, shall be scaled and the final settlement for the timber cut shall be made on this scaledeleted text begin ; and that the permit holder shall pay to the state the permit price for all timber authorized to be cut, including timber not cutdeleted text end .

Sec. 43.

Minnesota Statutes 2012, section 90.151, subdivision 6, is amended to read:

Subd. 6.

Notice and approval required.

The permit shall provide that the permit holder shall not start cutting any state timber nor clear deleted text begin building sitesdeleted text end new text begin landingsnew text end nor logging roads until the commissioner has been notified and has given prior approval to such cutting operations. Approval shall not be granted until the permit holder has completed a presale conference with the state appraiser designated to supervise the cutting. The permit holder shall also give prior notice whenever permit operations are to be temporarily halted, whenever permit operations are to be resumed, and when permit operations are to be completed.

Sec. 44.

Minnesota Statutes 2012, section 90.151, subdivision 7, is amended to read:

Subd. 7.

Liability for timber cut in trespass.

The permit shall provide that the permit holder shall pay the permit price value for any timber sold which is negligently destroyed or damaged by the permit holder in cutting or removing other timber sold. If the permit holder shall cut or remove or negligently destroy or damage any timber upon the land described, not sold under the permit, except such timber as it may be necessary to cut and remove in the construction of necessary logging roads and landings approved as to location and route by the commissioner, such timber shall be deemed to have been cut in trespass. The permit holder shall be liable for any such timber and recourse may be had upon the deleted text begin bonddeleted text end new text begin security depositnew text end .

Sec. 45.

Minnesota Statutes 2012, section 90.151, subdivision 8, is amended to read:

Subd. 8.

Suspension; cancellation.

The permit shall provide that the commissioner shall have the power to order suspension of all operations under the permit when deleted text begin in the commissioner's judgmentdeleted text end the conditions thereof have not been complied with and any timber cut or removed during such suspension shall be deemed to have been cut in trespass; that the commissioner may cancel the permit at any time deleted text begin when in the commissioner's judgment the conditions thereof have not been complied withdeleted text end new text begin due to a breach of the permit conditionsnew text end and such cancellation shall constitute repossession of the timber by the state; that the permit holder shall remove equipment and buildings from such land within 90 days after such cancellation; that, if the purchaser at any time fails to pay any obligations to the state under any other permits, any or all permits may be canceled; and that any timber new text begin cut or new text end removed in violation of the terms of the permit or of any law shall constitute trespass.

Sec. 46.

Minnesota Statutes 2012, section 90.151, subdivision 9, is amended to read:

Subd. 9.

Slashings disposal.

The permit shall provide that the permit holder shall deleted text begin burn or otherwisedeleted text end dispose ofnew text begin or treatnew text end all slashings or other refuse resulting from cutting operationsnew text begin , as specified in the permit,new text end in the manner now or hereafter provided by law.

Sec. 47.

Minnesota Statutes 2012, section 90.161, is amended to read:

90.161 deleted text begin SURETY BONDS FOR AUCTIONdeleted text end new text begin SECURITY DEPOSITS REQUIRED FOR EFFECTIVEnew text end TIMBER PERMITS.

Subdivision 1.

deleted text begin Bonddeleted text end new text begin Security depositnew text end required.

new text begin (a) new text end Except as otherwise provided by law, the purchaser of any state timber, before any timber permit becomes effective for any purpose, shall give deleted text begin adeleted text end good and valid deleted text begin bonddeleted text end new text begin security in the form of cash; a certified check; a cashier's check; a postal, bank, or express money order; a corporate surety bond; or an irrevocable bank letter of creditnew text end to the state of Minnesota equal to the value of all timber covered or to be covered by the permit, as shown by the sale price bid and the appraisal report as to quantity, less the amount of any payments pursuant to deleted text begin sectionsdeleted text end new text begin section new text end 90.14 deleted text begin and 90.163deleted text end .

new text begin (b)new text end The deleted text begin bonddeleted text end new text begin security depositnew text end shall be conditioned upon the faithful performance by the purchaser and successors in interest of all terms and conditions of the permit and all requirements of law in respect to timber sales. The deleted text begin bonddeleted text end new text begin security depositnew text end shall be approved in writing by the commissioner and filed for record in the commissioner's office.

new text begin (c)new text end deleted text begin In the alternative to cash and bond requirements, but upon the same conditions,deleted text end A purchaser may post bond for 100 percent of the purchase price and request refund of the amount of any payments pursuant to deleted text begin sectionsdeleted text end new text begin sectionnew text end 90.14 deleted text begin and 90.163deleted text end . The commissioner may credit the refund to any other permit held by the same permit holder if the permit is delinquent as provided in section 90.181, subdivision 2, or may credit the refund to any other permit to which the permit holder requests that it be credited.

new text begin (d) In the event of a default, the commissioner may take from the deposit the sum of money to which the state is entitled. The commissioner shall return the remainder of the deposit, if any, to the person making the deposit. When cash is deposited as security, it shall be applied to the amount due when a statement is prepared and transmitted to the permit holder according to section 90.181. Any balance due to the state shall be shown on the statement and shall be paid as provided in section 90.181. Any amount of the deposit in excess of the amount determined to be due according to section 90.181 shall be returned to the permit holder when a final statement is transmitted under section 90.181. All or part of a cash deposit may be withheld from application to an amount due on a nonfinal statement if it appears that the total amount due on the permit will exceed the bid price. new text end

new text begin (e) If an irrevocable bank letter of credit is provided as security under paragraph (a), at the written request of the permittee, the commissioner shall annually allow the amount of the bank letter of credit to be reduced by an amount proportionate to the value of timber that has been harvested and for which the state has received payment under the timber permit. The remaining amount of the bank letter of credit after a reduction under this paragraph must not be less than the value of the timber remaining to be harvested under the timber permit. new text end

new text begin (f) If cash; a certified check; a cashier's check; a personal check; or a postal, bank, or express money order is provided as security under paragraph (a) and no cutting of state timber has taken place on the permit, the commissioner may credit the security provided, less any deposit required under section 90.14, to any other permit to which the permit holder requests in writing that it be credited. new text end

Subd. 2.

Failure to deleted text begin bonddeleted text end new text begin provide security depositnew text end .

If deleted text begin bonddeleted text end new text begin the security depositnew text end is not furnished, no harvesting may occur and deleted text begin the down payment for timberdeleted text end new text begin 15 percent of the permit's purchase pricenew text end shall forfeit to the statenew text begin when the permit expiresnew text end .

Subd. 3.

Subrogation.

deleted text begin In case of defaultdeleted text end new text begin When security is provided by surety bond and the permit holder defaultsnew text end in payment deleted text begin by the permit holderdeleted text end new text begin ,new text end the surety upon the bond shall make payment in full to the state of all sums of money due under such permit; and thereupon such surety shall be deemed immediately subrogated to all the rights of the state in the timber so paid for; and such subrogated party may pursue the timber and recover therefor, or have any other appropriate relief in relation thereto which the state might or could have had if such surety had not made such payment. No assignment or other writing on the part of the state shall be necessary to make such subrogation effective, but the certificate signed by and bearing the official seal of the commissioner, showing the amount of such timber, the lands from which it was cut or upon which it stood, and the amount paid therefor, shall be prima facie evidence of such facts.

Subd. 4.

Change of security.

Prior to any deleted text begin harvestdeleted text end new text begin cuttingnew text end activity, or activities incidental to the preparation for harvest, a purchaser having posted a deleted text begin bonddeleted text end new text begin security depositnew text end for 100 percent of the purchase price of a sale may request the release of the deleted text begin bonddeleted text end new text begin securitynew text end and the commissioner shall grant the release deleted text begin upon cash payment to the commissioner of 15 percent of the appraised value of the sale, plus eight percent interest on the appraised value of the sale from the date of purchase to the date of releasedeleted text end new text begin while retaining, or upon repayment of, the permit's down payment and bid guarantee deposit requirementnew text end .

new text begin Subd. 5. new text end

new text begin Return of security. new text end

new text begin Any security required under this section shall be returned to the purchaser within 60 days after the final scale. new text end

Sec. 48.

Minnesota Statutes 2012, section 90.162, is amended to read:

90.162 deleted text begin ALTERNATIVE TO BOND OR DEPOSIT REQUIREMENTSdeleted text end new text begin SECURING TIMBER PERMITS WITH CUTTING BLOCKSnew text end .

In lieu of the deleted text begin bond or cashdeleted text end new text begin securitynew text end deposit equal to the value of all timber covered by the permit required by section 90.161 deleted text begin or 90.173deleted text end , a purchaser of state timber may elect in writing on a form prescribed by the attorney general to give good and valid surety to the state of Minnesota equal to the purchase price for any designated cutting block identified on the permit before the date the purchaser enters upon the land to begin harvesting the timber on the designated cutting block.

Sec. 49.

new text begin [90.164] TIMBER PERMIT DEVELOPMENT OPTION. new text end

new text begin With the completion of the presale conference requirement under section 90.151, subdivision 6, a permit holder may access the permit area in advance of the permit being fully secured as required by section 90.161, for the express purpose of clearing approved landings and logging roads. No cutting of state timber except that incidental to the clearing of approved landings and logging roads is allowed under this section. new text end

Sec. 50.

Minnesota Statutes 2012, section 90.171, is amended to read:

90.171 ASSIGNMENT OF AUCTION TIMBER PERMITS.

Any permit sold at public auction may be assigned upon written approval of the commissioner. The assignment of any permit shall be signed and acknowledged by the permit holder. The commissioner shall not approve any assignment until the assignee has new text begin been determined to meet the qualifications of a responsible bidder and has new text end given to the state a deleted text begin bonddeleted text end new text begin security depositnew text end which shall be substantially in the form of, and shall be deemed of the same effect as, the deleted text begin bonddeleted text end new text begin security depositnew text end required of the original purchaser. The commissioner may accept deleted text begin thedeleted text end new text begin an new text end agreement of the assignee and any corporate surety upon deleted text begin suchdeleted text end new text begin an new text end original bond, substituting the assignee in the place of deleted text begin suchdeleted text end new text begin the new text end original purchaser and continuing deleted text begin suchdeleted text end new text begin the new text end original bond in full force and effect, as to the assignee. Thereupon but not otherwise the permit holder making the assignment shall be released from all liability arising or accruing from actions taken after the assignment became effective.

Sec. 51.

Minnesota Statutes 2012, section 90.181, subdivision 2, is amended to read:

Subd. 2.

Deferred payments.

(a) If the amount of the statement is not paid within 30 days of the date thereof, it shall bear interest at the rate determined pursuant to section 16A.124, except that the purchaser shall not be required to pay interest that totals $1 or less. If the amount is not paid within 60 days, the commissioner shall place the account in the hands of the commissioner of revenue according to chapter 16D, who shall proceed to collect the same. When deemed in the best interests of the state, the commissioner shall take possession of the timber for which an amount is due wherever it may be found and sell the same informally or at public auction after giving reasonable notice.

(b) The proceeds of the sale shall be applied, first, to the payment of the expenses of seizure and sale; and, second, to the payment of the amount due for the timber, with interest; and the surplus, if any, shall belong to the state; and, in case a sufficient amount is not realized to pay these amounts in full, the balance shall be collected by the attorney general. Neither payment of the amount, nor the recovery of judgment therefor, nor satisfaction of the judgment, nor the seizure and sale of timber, shall release the sureties on any deleted text begin bonddeleted text end new text begin security depositnew text end given pursuant to this chapter, or preclude the state from afterwards claiming that the timber was cut or removed contrary to law and recovering damages for the trespass thereby committed, or from prosecuting the offender criminally.

Sec. 52.

Minnesota Statutes 2012, section 90.191, subdivision 1, is amended to read:

Subdivision 1.

Sale requirements.

The commissioner may sell the timber on any tract of state land in lots not exceeding 500 cords in volume, without formalities but for not less than the full appraised value thereof, to any person. No sale shall be made under this section to any person holding deleted text begin twodeleted text end new text begin more than fournew text end permits issued hereunder which are still in effectdeleted text begin ;deleted text end new text begin .new text end deleted text begin except that (1) a partnership as defined in chapter 323, which may include spouses but which shall provide evidence that a partnership exists, may be holding two permits for each of not more than three partners who are actively engaged in the business of logging or who are the spouses of persons who are actively engaged in the business of logging with that partnership; and (2) a corporation, a majority of whose shares and voting power are owned by natural persons related to each other within the fourth degree of kindred according to the rules of the civil law or their spouses or estates, may be holding two permits for each of not more than three shareholders who are actively engaged in the business of logging or who are the spouses of persons who are actively engaged in the business of logging with that corporation.deleted text end

Sec. 53.

Minnesota Statutes 2012, section 90.193, is amended to read:

90.193 EXTENSION OF TIMBER PERMITS.

The commissioner may, in the case of an exceptional circumstance beyond the control of the timber permit holder which makes it unreasonable, impractical, and not feasible to complete cutting and removal under the permit within the time allowed, grant deleted text begin andeleted text end new text begin one regularnew text end extension deleted text begin ofdeleted text end new text begin fornew text end one year. A new text begin written new text end request for the new text begin regular new text end extension must be received by the commissioner before the permit expires. The request must state the reason the extension is necessary and be signed by the permit holder. An interest rate of eight percent may be charged for the period of extension.

Sec. 54.

Minnesota Statutes 2012, section 90.195, is amended to read:

90.195 SPECIAL USE new text begin AND PRODUCT new text end PERMIT.

new text begin (a) new text end The commissioner may issue a permit to salvage or cut not to exceed 12 cords of fuelwood per year for personal use from either or both of the following sources: (1) dead, down, and deleted text begin diseaseddeleted text end new text begin damagednew text end trees; (2) other trees that are of negative value under good forest management practices. The permits may be issued for a period not to exceed one year. The commissioner shall charge a fee for the permit deleted text begin that shall cover the commissioner's cost of issuing the permit anddeleted text end new text begin as provided under section 90.041, subdivision 10. The feenew text end shall not exceed the current market value of fuelwood of similar species, grade, and volume that is being sold in the area where the salvage or cutting is authorized under the permit.

new text begin (b) The commissioner may issue a special product permit under section 89.42 for commercial use, which may include incidental volumes of boughs, gravel, hay, biomass, and other products derived from forest management activities. The value of the products is the current market value of the products that are being sold in the area. The permit may be issued for a period not to exceed one year and the commissioner shall charge a fee for the permit as provided under section 90.041, subdivision 10. new text end

new text begin (c) The commissioner may issue a special use permit for incidental volumes of timber from approved right-of-way road clearing across state land for the purpose of accessing a state timber permit. The permit shall include the volume and value of timber to be cleared and may be issued for a period not to exceed one year. A presale conference as required under section 90.151, subdivision 6, must be completed before the start of any activities under the permit. new text end

Sec. 55.

Minnesota Statutes 2012, section 90.201, subdivision 2a, is amended to read:

Subd. 2a.

Prompt payment of refunds.

Any refund of cash that is due to a permit holder as determined on a final statement transmitted pursuant to section 90.181 or a refund of cash made pursuant to section 90.161, subdivision 1, deleted text begin or 90.173, paragraph (a),deleted text end shall be paid to the permit holder according to section 16A.124 unless the refund is credited on another permit as provided in this chapter.

Sec. 56.

Minnesota Statutes 2012, section 90.211, is amended to read:

90.211 PURCHASE MONEY, WHEN FORFEITED.

If the holder of an effective permit new text begin begins to cut and then new text end fails to deleted text begin cutdeleted text end new text begin completenew text end any part deleted text begin thereofdeleted text end new text begin of the permitnew text end before the expiration of the permit, the permit holder shall nevertheless pay the price therefor; but under no circumstances shall timber be cut after the expiration of the permit or extension thereof.

Sec. 57.

Minnesota Statutes 2012, section 90.221, is amended to read:

90.221 TIMBER SALES RECORDS.

The commissioner shall keep timber sales records, including the description of each tract of land from which any timber is sold; the date of the report of the state appraisers; the kind, amount, and value of the timber as shown by such report; the date of the sale; the price for which the timber was sold; the name of the purchaser; the number, date of issuance and date of expiration of each permit; the date of any assignment of the permit; the name of the assignee; the dates of the filing and the amounts of the respective deleted text begin bondsdeleted text end new text begin security depositsnew text end by the purchaser and assignee; the names of the sureties thereon; the amount of timber taken from the land; the date of the report of the scaler and state appraiser; the names of the scaler and the state appraiser who scaled the timber; and the amount paid for such timber and the date of payment.

Sec. 58.

Minnesota Statutes 2012, section 90.252, subdivision 1, is amended to read:

Subdivision 1.

Consumer scaling.

The commissioner may enter into an agreement with either a timber sale permittee, or the purchaser of the cut products, or both, so that the scaling of the cut timber and the collection of the payment for the same can be consummated by the deleted text begin consumerdeleted text end new text begin statenew text end . Such an agreement shall be approved as to form and content by the attorney general and shall provide for a bond or cash in lieu of a bond and such other safeguards as are necessary to protect the interests of the state. The scaling and payment collection procedure may be used for any state timber sale, except that no permittee who is also the consumer shall both cut and scale the timber sold unless such scaling is supervised by a state scaler.

Sec. 59.

Minnesota Statutes 2012, section 90.301, subdivision 2, is amended to read:

Subd. 2.

Seizure of unlawfully cut timber.

The commissioner may take possession of any timber hereafter unlawfully cut upon or taken from any land owned by the state wherever found and may sell the same informally or at public auction after giving such notice as the commissioner deems reasonable and after deducting all the expenses of such sale the proceeds thereof shall be paid into the state treasury to the credit of the proper fund; and when any timber so unlawfully cut has been intermingled with any other timber or property so that it cannot be identified or plainly separated therefrom the commissioner may so seize and sell the whole quantity so intermingled and, in such case, the whole quantity of such timber shall be conclusively presumed to have been unlawfully taken from state land. When the timber unlawfully cut or removed from state land is so seized and soldnew text begin ,new text end the seizure shall not in any manner relieve the trespasser who cut or removed, or caused the cutting or removal of, any such timber from the full liability imposed by this chapter for the trespass so committed, but the net amount realized from such sale shall be credited on whatever judgment is recovered against such trespassernew text begin , if the trespass was deemed to be casual and involuntarynew text end .

Sec. 60.

Minnesota Statutes 2012, section 90.301, subdivision 4, is amended to read:

Subd. 4.

Apprehension of trespassers; reward.

The commissioner may offer a reward to be paid to a person giving to the proper authorities any information that leads to the conviction of a person violating this chapter. The reward is limited to the greater of $100 or ten percent of the single stumpage value of any timber unlawfully cut or removed. The commissioner shall pay the reward from funds appropriated for that purpose or from receipts from the sale of state timber. A reward shall not be paid to salaried forest officers, new text begin state appraisers, scalers, new text end conservation officers, or licensed peace officers.

Sec. 61.

Minnesota Statutes 2012, section 90.41, subdivision 1, is amended to read:

Subdivision 1.

Violationsnew text begin and penaltynew text end .

new text begin (a) new text end Any state scaler or state appraiser who shall accept any compensation or gratuity for services as such from any other source except the state of Minnesota, or any state scaler, or other person authorized to scale state timber, or state appraiser, who shall make any false report, or insert in any such report any false statement, or shall make any such report without having examined the land embraced therein or without having actually been upon the land, or omit from any such report any statement required by law to be made therein, or who shall fail to report any known trespass committed upon state lands, or who shall conspire with any other person in any manner, by act or omission or otherwise, to defraud or unlawfully deprive the state of Minnesota of any land or timber, or the value thereof, shall be guilty of a felony. Any material discrepancy between the facts and the scale returned by any such person scaling timber for the state shall be considered prima facie evidence that such person is guilty of violating this statute.

new text begin (b) new text end No such appraiser or scaler who has been once discharged for cause shall ever again be appointed. This provision shall not apply to resignations voluntarily made by and accepted from such employees.

Sec. 62.

Minnesota Statutes 2012, section 93.46, is amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Scram mining. new text end

new text begin "Scram mining" means a mining operation that produces natural iron ore, natural iron ore concentrates, or taconite ore as described in section 93.20, subdivisions 12 to 18, from previously developed stockpiles, tailing basins, underground mine workings, or open pits and that involves no more than 80 acres of land not previously affected by mining, or more than 80 acres of land not previously affected by mining if the operator can demonstrate that impacts would be substantially the same as other scram operations. "Land not previously affected by mining" means land upon which mine wastes have not been deposited and land from which materials have not been removed in connection with the production or extraction of metallic minerals. new text end

Sec. 63.

Minnesota Statutes 2012, section 93.481, subdivision 3, is amended to read:

Subd. 3.

Term of permit; amendment.

new text begin (a) new text end A permit issued by the commissioner pursuant to this section shall be granted for the term determined necessary by the commissioner for the completion of the proposed mining operation, including reclamation or restoration.new text begin The term of a scram mining permit for iron ore or taconite shall be determined in the same manner as a permit to mine for an iron ore or taconite mining operation.new text end

new text begin (b)new text end A permit may be amended upon written application to the commissioner. A permit amendment application fee must be submitted with the written application. The permit amendment application fee is ten percent of the amount provided for in subdivision 1, clause (3), for an application for the applicable permit to mine. If the commissioner determines that the proposed amendment constitutes a substantial change to the permit, the person applying for the amendment shall publish notice in the same manner as for a new permit, and a hearing shall be held if written objections are received in the same manner as for a new permit. An amendment may be granted by the commissioner if the commissioner determines that lawful requirements have been met.

Sec. 64.

new text begin [93.61] DRILL CORE LIBRARY ACCESS. new text end

new text begin Consistent with section 13.03, subdivision 3, a person shall not be required to pay a fee to access exploration data, exploration drill core data, mineral evaluation data, and mining data stored in the drill core library located in Hibbing, Minnesota, and managed by the commissioner of natural resources. The library shall be open during regular business hours. new text end

Sec. 65.

Minnesota Statutes 2012, 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, propagation, or as pets.

new text begin (c) Nonresident professional wildlife rehabilitators with a federal rehabilitation permit may possess and transport wildlife affected by oil spills. new text end

Sec. 66.

new text begin [103G.217] DRIFTLESS AREA WATER RESOURCES. new text end

new text begin (a) Groundwater discharge from natural springs and seepage areas in the driftless area of Minnesota, corresponding to the area of the state contained within the boundaries of the Department of Natural Resources Paleozoic Plateau Ecological Section, is vital to sustaining the coldwater aquatic ecosystems in the region, as well as the recreational, commercial, agricultural, environmental, aesthetic, and economic well-being of the region. new text end

new text begin (b) Within the boundaries of the Department of Natural Resources Paleozoic Plateau Ecological Section, no excavation or mining of silica sand, including, but not limited to, digging, excavating, mining, drilling, blasting, tunneling, dredging, stripping, or shafting, may occur within one mile of a designated trout stream as listed in Minnesota Rules unless a silica sand mining trout stream setback permit has been issued by the commissioner. new text end

new text begin (c) Before issuing a permit under this section, the commissioner shall: new text end

new text begin (1) require a project proposer to do a hydrogeological evaluation and collect any other information necessary to assess potential impacts to hydrogeological features, including private and public drinking water supply wells; and new text end

new text begin (2) identify appropriate setbacks from designated trout streams, springs, and other hydrogeologic features and any other restrictions necessary to protect trout stream water quantity, quality, and habitat. new text end

new text begin (d) The commissioner may assess the project proposer fees to cover the reasonable costs of duties performed under this section. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and applies to new silica sand mining projects and projects for which environmental review documents have been noticed for public comments after April 30, 2013. new text end

Sec. 67.

Minnesota Statutes 2012, section 103G.265, subdivision 2, is amended to read:

Subd. 2.

Diversion greater than 2,000,000 gallons per day.

A water use permit or a plan that requires a permit or the commissioner's approval, involving a diversion of waters of the state of more than 2,000,000 gallons per day average in a 30-day period, to a place outside of this state or from the basin of origin within this state may not be granted or approved untildeleted text begin :deleted text end

deleted text begin (1)deleted text end a determination is made by the commissioner that the water remaining in the basin of origin will be adequate to meet the basin's water resources needs during the specified life of the diversion projectnew text begin and, for groundwater, the diversion meets the applicable standards under section 103G.287, subdivision 5new text end deleted text begin ; anddeleted text end

deleted text begin (2) approval of the diversion is given by the legislaturedeleted text end .

Sec. 68.

Minnesota Statutes 2012, section 103G.265, subdivision 3, is amended to read:

Subd. 3.

Consumptive use of more than 2,000,000 gallons per day.

deleted text begin (a) Except as provided in paragraph (b),deleted text end A water use permit or a plan that requires a permit or the commissioner's approval, involving a consumptive use of more than 2,000,000 gallons per day average in a 30-day period, may not be granted or approved untildeleted text begin :deleted text end

deleted text begin (1)deleted text end a determination is made by the commissioner that the water remaining in the basin of origin will be adequate to meet the basin's water resources needs during the specified life of the consumptive usenew text begin and, for groundwater, the consumptive use meets the applicable standards under section 103G.287, subdivision 5new text end deleted text begin ; anddeleted text end

deleted text begin (2) approval of the consumptive use is given by the legislaturedeleted text end .

deleted text begin (b) Legislative approval under paragraph (a), clause (2), is not required for a consumptive use in excess of 2,000,000 gallons per day average in a 30-day period for: deleted text end

deleted text begin (1) a domestic water supply, excluding industrial and commercial uses of a municipal water supply; deleted text end

deleted text begin (2) agricultural irrigation and processing of agricultural products; deleted text end

deleted text begin (3) construction and mine land dewatering; deleted text end

deleted text begin (4) pollution abatement or remediation; and deleted text end

deleted text begin (5) fish and wildlife enhancement projects using surface water sources. deleted text end

Sec. 69.

Minnesota Statutes 2012, section 103G.271, subdivision 1, is amended to read:

Subdivision 1.

Permit required.

(a) Except as provided in paragraph (b), the state, a person, partnership, or association, private or public corporation, county, municipality, or other political subdivision of the state may not appropriate or use waters of the state without a water use permit from the commissioner.

(b) This section does not apply to use for a water supply by less than 25 persons for domestic purposesnew text begin , except as required by the commissioner under section 103G.287, subdivision 4, paragraph (b)new text end .

(c) The commissioner may issue a state general permit for appropriation of water to a governmental subdivision or to the general public. The general permit may authorize more than one project and the appropriation or use of more than one source of water. Water use permit processing fees and reports required under subdivision 6 and section 103G.281, subdivision 3, are required for each project or water source that is included under a general permit, except that no fee is required for uses totaling less than 15,000,000 gallons annually.

Sec. 70.

Minnesota Statutes 2012, section 103G.271, subdivision 4, is amended to read:

Subd. 4.

Minimum use exemption and local approval of low use permits.

(a) Except for local permits under section 103B.211, subdivision 4, a water use permit is not required for the appropriation and use of less than deleted text begin a minimum amount prescribed by the commissioner by ruledeleted text end new text begin 10,000 gallons per day and totaling no more than 1,000,000 gallons per year, except as required by the commissioner under section 103G.287, subdivision 4, paragraph (b)new text end .

(b) Water use permits for more than the minimum amount but less than an intermediate amount prescribed by rule must be processed and approved at the municipal, county, or regional level based on rules adopted by the commissioner.

(c) The rules must include provisions for reporting to the commissioner the amounts of water appropriated under local permits.

Sec. 71.

Minnesota Statutes 2012, section 103G.287, subdivision 1, is amended to read:

Subdivision 1.

Applications for groundwater appropriationsnew text begin ; preliminary well construction approvalnew text end .

(a) Groundwater use permit applications are not complete until the applicant has supplied:

(1) a water well record as required by section 103I.205, subdivision 9, information on the subsurface geologic formations penetrated by the well and the formation or aquifer that will serve as the water source, and geologic information from test holes drilled to locate the site of the production well;

(2) the maximum daily, seasonal, and annual pumpage rates and volumes being requested;

(3) information on groundwater quality in terms of the measures of quality commonly specified for the proposed water use and details on water treatment necessary for the proposed use;

(4) an inventory of existing wells within 1-1/2 miles of the proposed production well or within the area of influence, as determined by the commissioner. The inventory must include information on well locations, depths, geologic formations, depth of the pump or intake, pumping and nonpumping water levels, and details of well construction; deleted text begin anddeleted text end

(5) the results of an aquifer test completed according to specifications approved by the commissioner. The test must be conducted at the maximum pumping rate requested in the application and for a length of time adequate to assess or predict impacts to other wells and surface water and groundwater resources. The permit applicant is responsible for all costs related to the aquifer test, including the construction of groundwater and surface water monitoring installations, and water level readings before, during, and after the aquifer testnew text begin ; andnew text end

new text begin (6) the results of any assessments conducted by the commissioner under paragraph (c)new text end .

(b) The commissioner may waive an application requirement in this subdivision if the information provided with the application is adequate to determine whether the proposed appropriation and use of water is sustainable and will protect ecosystems, water quality, and the ability of future generations to meet their own needs.

new text begin (c) The commissioner shall provide an assessment of a proposed well needing a groundwater appropriation permit. The commissioner shall evaluate the information submitted as required under section 103I.205, subdivision 1, paragraph (f), and determine whether the anticipated appropriation request is likely to meet the applicable requirements of this chapter. If the appropriation request is likely to meet applicable requirements, the commissioner shall provide the person submitting the information with a letter providing preliminary approval to construct the well. new text end

Sec. 72.

Minnesota Statutes 2012, section 103G.287, subdivision 4, is amended to read:

Subd. 4.

Groundwater management areas.

new text begin (a) new text end The commissioner may designate groundwater management areas and limit total annual water appropriations and uses within a designated area to ensure sustainable use of groundwater that protects ecosystems, water quality, and the ability of future generations to meet their own needs. Water appropriations and uses within a designated management area must be consistent with a plan approved by the commissioner that addresses water conservation requirements and water allocation priorities established in section 103G.261.

new text begin (b) Notwithstanding section 103G.271, subdivision 1, paragraph (b), and Minnesota Rules, within designated groundwater management areas, the commissioner may require general permits as specified in section 103G.271, subdivision 1, paragraph (c), for water users using less than 10,000 gallons per day or 1,000,000 gallons per year and water suppliers serving less than 25 persons for domestic purposes. The commissioner may waive the requirements under section 103G.281 for general permits issued under this paragraph, and the fee specified in section 103G.301, subdivision 2, paragraph (c), does not apply to general permits issued under this paragraph. new text end

Sec. 73.

Minnesota Statutes 2012, section 103G.287, subdivision 5, is amended to read:

Subd. 5.

deleted text begin Interference with other wellsdeleted text end new text begin Sustainability standardnew text end .

The commissioner may issue water use permits for appropriation from groundwater only if the commissioner determines that the groundwater use is sustainable to supply the needs of future generations and the proposed use will not harm ecosystems, degrade water, or reduce water levels beyond the reach of public water supply and private domestic wells constructed according to Minnesota Rules, chapter 4725.

Sec. 74.

Minnesota Statutes 2012, section 103I.205, subdivision 1, is amended to read:

Subdivision 1.

Notification required.

(a) Except as provided in paragraphs (d) and (e), a person may not construct a well until a notification of the proposed well on a form prescribed by the commissioner is filed with the commissioner with the filing fee in section 103I.208new text begin , and, when applicable, the person has met the requirements of paragraph (f)new text end . If after filing the well notification an attempt to construct a well is unsuccessful, a new notification is not required unless the information relating to the successful well has substantially changed.

(b) The property owner, the property owner's agent, or the well contractor where a well is to be located must file the well notification with the commissioner.

(c) The well notification under this subdivision preempts local permits and notifications, and counties or home rule charter or statutory cities may not require a permit or notification for wells unless the commissioner has delegated the permitting or notification authority under section 103I.111.

(d) A person who is an individual that constructs a drive point well on property owned or leased by the individual for farming or agricultural purposes or as the individual's place of abode must notify the commissioner of the installation and location of the well. The person must complete the notification form prescribed by the commissioner and mail it to the commissioner by ten days after the well is completed. A fee may not be charged for the notification. A person who sells drive point wells at retail must provide buyers with notification forms and informational materials including requirements regarding wells, their location, construction, and disclosure. The commissioner must provide the notification forms and informational materials to the sellers.

(e) A person may not construct a monitoring well until a permit is issued by the commissioner for the construction. If after obtaining a permit an attempt to construct a well is unsuccessful, a new permit is not required as long as the initial permit is modified to indicate the location of the successful well.

new text begin (f) When the operation of a well will require an appropriation permit from the commissioner of natural resources, a person may not begin construction of the well until the person submits the following information to the commissioner of natural resources: new text end

new text begin (1) the location of the well; new text end

new text begin (2) the formation or aquifer that will serve as the water source; new text end

new text begin (3) the maximum daily, seasonal, and annual pumpage rates and volumes that will be requested in the appropriation permit; and new text end

new text begin (4) other information requested by the commissioner of natural resources that is necessary to conduct the preliminary assessment required under section 103G.287, subdivision 1, paragraph (c). new text end

new text begin The person may begin construction after receiving preliminary approval from the commissioner of natural resources. new text end

Sec. 75.

Minnesota Statutes 2012, section 114D.50, subdivision 4, is amended to read:

Subd. 4.

Expenditures; accountability.

(a) A project receiving funding from the clean water fund must meet or exceed the constitutional requirements to protect, enhance, and restore water quality in lakes, rivers, and streams and to protect groundwater and drinking water from degradation. Priority may be given to projects that meet more than one of these requirements. A project receiving funding from the clean water fund shall include measurable outcomes, as defined in section 3.303, subdivision 10, and a plan for measuring and evaluating the results. A project must be consistent with current science and incorporate state-of-the-art technology.

(b) Money from the clean water fund shall be expended to balance the benefits across all regions and residents of the state.

(c) A state agency or other recipient of a direct appropriation from the clean water fund must compile and submit all information for proposed and funded projects or programs, including the proposed measurable outcomes and all other items required under section 3.303, subdivision 10, to the Legislative Coordinating Commission as soon as practicable or by January 15 of the applicable fiscal year, whichever comes first. The Legislative Coordinating Commission must post submitted information on the Web site required under section 3.303, subdivision 10, as soon as it becomes available. Information classified as not public under section 13D.05, subdivision 3, paragraph (d), is not required to be placed on the Web site.

(d) Grants funded by the clean water fund must be implemented according to section 16B.98 and must account for all expenditures. Proposals must specify a process for any regranting envisioned. Priority for grant proposals must be given to proposals involving grants that will be competitively awarded.

(e) Money from the clean water fund may only be spent on projects that benefit Minnesota waters.

(f) When practicable, a direct recipient of an appropriation from the clean water fund shall prominently display on the recipient's Web site home page the legacy logo required under Laws 2009, chapter 172, article 5, section 10, as amended by Laws 2010, chapter 361, article 3, section 5, accompanied by the phrase "Click here for more information." When a person clicks on the legacy logo image, the Web site must direct the person to a Web page that includes both the contact information that a person may use to obtain additional information, as well as a link to the Legislative Coordinating Commission Web site required under section 3.303, subdivision 10.

(g) Future eligibility for money from the clean water fund is contingent upon a state agency or other recipient satisfying all applicable requirements in this section, as well as any additional requirements contained in applicable session law.

new text begin (h) Money from the clean water fund may be used to leverage federal funds through execution of formal project partnership agreements with federal agencies consistent with respective federal agency partnership agreement requirements. new text end

Sec. 76.

new text begin [115.84] WASTEWATER LABORATORY CERTIFICATION. new text end

new text begin Subdivision 1. new text end

new text begin Wastewater laboratory certification required. new text end

new text begin (a) Laboratories performing wastewater or water analytical laboratory work, the results of which are reported to the agency to determine compliance with a national pollutant discharge elimination system (NPDES) or state disposal system (SDS) permit condition or other regulatory document, must be certified according to this section. new text end

new text begin (b) This section does not apply to: new text end

new text begin (1) laboratories that are private and for-profit; new text end

new text begin (2) laboratories that perform drinking water analyses; or new text end

new text begin (3) laboratories that perform remediation program analyses, such as Superfund or petroleum analytical work. new text end

new text begin (c) Until adoption of rules under subdivision 2, laboratories required to be certified under this section that submit data to the agency must: (1) register with the agency by submitting registration information required by the agency; or (2) be certified or accredited by a recognized authority, such as the commissioner of health under sections 144.97 to 144.99, for the analytical methods required by the agency. new text end

new text begin Subd. 2. new text end

new text begin Rules. new text end

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

new text begin Subd. 3. new text end

new text begin Fees. new text end

new text begin (a) Until the agency adopts a rule establishing fees for certification, the agency shall collect fees from laboratories registering with the agency, but not accredited by the commissioner of health under sections 144.97 to 144.99, in amounts necessary to cover the reasonable costs of the certification program, including reviewing applications, issuing certifications, and conducting audits and compliance assistance. new text end

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

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

new text begin Subd. 4. new text end

new text begin Enforcement. new text end

new text begin (a) The commissioner may deny, suspend, or revoke wastewater laboratory certification for, but is not limited to, any of the following reasons: fraud, failure to follow applicable requirements, failure to respond to documented deficiencies or complete corrective actions necessary to address deficiencies, failure to pay certification fees, or other violations of federal or state law. new text end

new text begin (b) This section and the rules adopted under it may be enforced by any means provided in section 115.071. new text end

Sec. 77.

Minnesota Statutes 2012, section 115A.1320, subdivision 1, is amended to read:

Subdivision 1.

Duties of the agency.

(a) The agency shall administer sections 115A.1310 to 115A.1330.

(b) The agency shall establish procedures for:

(1) receipt and maintenance of the registration statements and certifications filed with the agency under section 115A.1312; and

(2) making the statements and certifications easily available to manufacturers, retailers, and members of the public.

(c) The agency shall annually review the value of the following variables that are part of the formula used to calculate a manufacturer's annual registration fee under section 115A.1314, subdivision 1:

(1) the proportion of sales of video display devices sold to households that manufacturers are required to recycle;

(2) the estimated per-pound price of recycling covered electronic devices sold to households;

(3) the base registration fee; and

(4) the multiplier established for the weight of covered electronic devices collected in section 115A.1314, subdivision 1, paragraph (d). If the agency determines that any of these values must be changed in order to improve the efficiency or effectiveness of the activities regulated under sections 115A.1312 to 115A.1330, the agency shall submit recommended changes and the reasons for them to the chairs of the senate and house of representatives committees with jurisdiction over solid waste policy.

(d) By January 15 each year, beginning in 2008, the agency shall calculate estimated sales of video display devices sold to households by each manufacturer during the preceding program year, based on national sales data, and forward the estimates to the department.

(e) The agency shall provide a report to the governor and the legislature on the implementation of sections 115A.1310 to 115A.1330. For each program year, the report must discuss the total weight of covered electronic devices recycled and a summary of information in the reports submitted by manufacturers and recyclers under section 115A.1316. The report must also discuss the various collection programs used by manufacturers to collect covered electronic devices; information regarding covered electronic devices that are being collected by persons other than registered manufacturers, collectors, and recyclers; and information about covered electronic devices, if any, being disposed of in landfills in this state. The report must include a description of enforcement actions under sections 115A.1310 to 115A.1330. The agency may include in its report other information received by the agency regarding the implementation of sections 115A.1312 to 115A.1330. The report must be done in conjunction with the report required under section deleted text begin 115D.10deleted text end new text begin 115A.121new text end .

(f) The agency shall promote public participation in the activities regulated under sections 115A.1312 to 115A.1330 through public education and outreach efforts.

(g) The agency shall enforce sections 115A.1310 to 115A.1330 in the manner provided by sections 115.071, subdivisions 1, 3, 4, 5, and 6; and 116.072, except for those provisions enforced by the department, as provided in subdivision 2. The agency may revoke a registration of a collector or recycler found to have violated sections 115A.1310 to 115A.1330.

(h) The agency shall facilitate communication between counties, collection and recycling centers, and manufacturers to ensure that manufacturers are aware of video display devices available for recycling.

(i) The agency shall develop a form retailers must use to report information to manufacturers under section 115A.1318 and post it on the agency's Web site.

(j) The agency shall post on its Web site the contact information provided by each manufacturer under section 115A.1318, paragraph (e).

Sec. 78.

new text begin [115A.1415] ARCHITECTURAL PAINT; PRODUCT STEWARDSHIP PROGRAM; STEWARDSHIP PLAN. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have the meanings given: new text end

new text begin (1) "architectural paint" means interior and exterior architectural coatings sold in containers of five gallons or less. Architectural paint does not include industrial coatings, original equipment coatings, or specialty coatings; new text end

new text begin (2) "brand" means a name, symbol, word, or mark that identifies architectural paint, rather than its components, and attributes the paint to the owner or licensee of the brand as the producer; new text end

new text begin (3) "discarded paint" means architectural paint that is no longer used for its manufactured purpose; new text end

new text begin (4) "producer" means a person that: new text end

new text begin (i) has legal ownership of the brand, brand name, or cobrand of architectural paint sold in the state; new text end

new text begin (ii) imports architectural paint branded by a producer that meets subclause (i) when the producer has no physical presence in the United States; new text end

new text begin (iii) if subclauses (i) and (ii) do not apply, makes unbranded architectural paint that is sold in the state; or new text end

new text begin (iv) sells architectural paint at wholesale or retail, does not have legal ownership of the brand, and elects to fulfill the responsibilities of the producer for the architectural paint by certifying that election in writing to the commissioner; new text end

new text begin (5) "recycling" means the process of collecting and preparing recyclable materials and reusing the materials in their original form or using them in manufacturing processes that do not cause the destruction of recyclable materials in a manner that precludes further use; new text end

new text begin (6) "retailer" means any person who offers architectural paint for sale at retail in the state; new text end

new text begin (7) "reuse" means donating or selling collected architectural paint back into the market for its original intended use, when the architectural paint retains its original purpose and performance characteristics; new text end

new text begin (8) "sale" or "sell" means transfer of title of architectural paint for consideration, including a remote sale conducted through a sales outlet, catalog, Web site, or similar electronic means. Sale or sell includes a lease through which architectural paint is provided to a consumer by a producer, wholesaler, or retailer; new text end

new text begin (9) "stewardship assessment" means the amount added to the purchase price of architectural paint sold in the state that is necessary to cover the cost of collecting, transporting, and processing postconsumer architectural paint by the producer or stewardship organization pursuant to a product stewardship program; new text end

new text begin (10) "stewardship organization" means an organization appointed by one or more producers to act as an agent on behalf of the producer to design, submit, and administer a product stewardship program under this section; and new text end

new text begin (11) "stewardship plan" means a detailed plan describing the manner in which a product stewardship program under subdivision 2 will be implemented. new text end

new text begin Subd. 2. new text end

new text begin Product stewardship program. new text end

new text begin For architectural paint sold in the state, producers must, individually or through a stewardship organization, implement and finance a statewide product stewardship program that manages the architectural paint by reducing the paint's waste generation, promoting its reuse and recycling, and providing for negotiation and execution of agreements to collect, transport, and process the architectural paint for end-of-life recycling and reuse. new text end

new text begin Subd. 3. new text end

new text begin Requirement for sale. new text end

new text begin (a) On and after July 1, 2014, or three months after program plan approval, whichever is sooner, no producer, wholesaler, or retailer may sell or offer for sale in the state architectural paint unless the paint's producer participates in an approved stewardship plan, either individually or through a stewardship organization. new text end

new text begin (b) Each producer must operate a product stewardship program approved by the agency or enter into an agreement with a stewardship organization to operate, on the producer's behalf, a product stewardship program approved by the agency. new text end

new text begin Subd. 4. new text end

new text begin Requirement to submit plan. new text end

new text begin (a) On or before March 1, 2014, and before offering architectural paint for sale in the state, a producer must submit a stewardship plan to the agency and receive approval of the plan or must submit documentation to the agency that demonstrates the producer has entered into an agreement with a stewardship organization to be an active participant in an approved product stewardship program as described in subdivision 2. A stewardship plan must include all elements required under subdivision 5. new text end

new text begin (b) An amendment to the plan, if determined necessary by the commissioner, must be submitted every five years. new text end

new text begin (c) It is the responsibility of the entities responsible for each stewardship plan to notify the agency within 30 days of any significant changes or modifications to the plan or its implementation. Within 30 days of the notification, a written plan revision must be submitted to the agency for review and approval. new text end

new text begin Subd. 5. new text end

new text begin Stewardship plan content. new text end

new text begin A stewardship plan must contain: new text end

new text begin (1) certification that the product stewardship program will accept all discarded paint regardless of which producer produced the architectural paint and its individual components; new text end

new text begin (2) contact information for the individual and the entity submitting the plan, a list of all producers participating in the product stewardship program, and the brands covered by the product stewardship program; new text end

new text begin (3) a description of the methods by which the discarded paint will be collected in all areas in the state without relying on end-of-life fees, including an explanation of how the collection system will be convenient and adequate to serve the needs of small businesses and residents in both urban and rural areas on an ongoing basis and a discussion of how the existing household hazardous waste infrastructure will be considered when selecting collection sites; new text end

new text begin (4) a description of how the adequacy of the collection program will be monitored and maintained; new text end

new text begin (5) the names and locations of collectors, transporters, and recyclers that will manage discarded paint; new text end

new text begin (6) a description of how the discarded paint and the paint's components will be safely and securely transported, tracked, and handled from collection through final recycling and processing; new text end

new text begin (7) a description of the method that will be used to reuse, deconstruct, or recycle the discarded paint to ensure that the paint's components, to the extent feasible, are transformed or remanufactured into finished products for use; new text end

new text begin (8) a description of the promotion and outreach activities that will be used to encourage participation in the collection and recycling programs and how the activities' effectiveness will be evaluated and the program modified, if necessary; new text end

new text begin (9) the proposed stewardship assessment. The producer or stewardship organization shall propose a uniform stewardship assessment for any architectural paint sold in the state. The proposed stewardship assessment shall be reviewed by an independent auditor to ensure that the assessment does not exceed the costs of the product stewardship program and the independent auditor shall recommend an amount for the stewardship assessment. The agency must approve the stewardship assessment; new text end

new text begin (10) evidence of adequate insurance and financial assurance that may be required for collection, handling, and disposal operations; new text end

new text begin (11) five-year performance goals, including an estimate of the percentage of discarded paint that will be collected, reused, and recycled during each of the first five years of the stewardship plan. The performance goals must include a specific goal for the amount of discarded paint that will be collected and recycled and reused during each year of the plan. The performance goals must be based on: new text end

new text begin (i) the most recent collection data available for the state; new text end

new text begin (ii) the estimated amount of architectural paint disposed of annually; new text end

new text begin (iii) the weight of the architectural paint that is expected to be available for collection annually; and new text end

new text begin (iv) actual collection data from other existing stewardship programs. new text end

new text begin The stewardship plan must state the methodology used to determine these goals; and new text end

new text begin (12) a discussion of the status of end markets for collected architectural paint and what, if any, additional end markets are needed to improve the functioning of the program. new text end

new text begin Subd. 6. new text end

new text begin Consultation required. new text end

new text begin Each stewardship organization or individual producer submitting a stewardship plan must consult with stakeholders including retailers, contractors, collectors, recyclers, local government, and customers during the development of the plan. new text end

new text begin Subd. 7. new text end

new text begin Agency review and approval. new text end

new text begin (a) Within 90 days after receipt of a proposed stewardship plan, the agency shall determine whether the plan complies with subdivision 4. If the agency approves a plan, the agency shall notify the applicant of the plan approval in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must submit a revised plan to the agency within 60 days after receiving notice of rejection. new text end

new text begin (b) Any proposed changes to a stewardship plan must be approved by the agency in writing. new text end

new text begin Subd. 8. new text end

new text begin Plan availability. new text end

new text begin All draft and approved stewardship plans shall be placed on the agency's Web site for at least 30 days and made available at the agency's headquarters for public review and comment. new text end

new text begin Subd. 9. new text end

new text begin Conduct authorized. new text end

new text begin A producer or stewardship organization that organizes collection, transport, and processing of architectural paint under this section is immune from liability for the conduct under state laws relating to antitrust, restraint of trade, unfair trade practices, and other regulation of trade or commerce only to the extent that the conduct is necessary to plan and implement the producer's or organization's chosen organized collection or recycling system. new text end

new text begin Subd. 10. new text end

new text begin Responsibility of producers. new text end

new text begin (a) On and after the date of implementation of a product stewardship program according to this section, a producer of architectural paint must add the stewardship assessment, as established under subdivision 5, clause (9), to the cost of architectural paint sold to retailers and distributors in the state by the producer. new text end

new text begin (b) Producers of architectural paint or the stewardship organization shall provide consumers with educational materials regarding the stewardship assessment and product stewardship program. The materials must include, but are not limited to, information regarding available end-of-life management options for architectural paint offered through the product stewardship program and information that notifies consumers that a charge for the operation of the product stewardship program is included in the purchase price of architectural paint sold in the state. new text end

new text begin Subd. 11. new text end

new text begin Responsibility of retailers. new text end

new text begin (a) On and after July 1, 2014, or three months after program plan approval, whichever is sooner, no architectural paint may be sold in the state unless the paint's producer is participating in an approved stewardship plan. new text end

new text begin (b) On and after the implementation date of a product stewardship program according to this section, each retailer or distributor, as applicable, must ensure that the full amount of the stewardship assessment added to the cost of architectural paint by producers under subdivision 10 is included in the purchase price of all architectural paint sold in the state. new text end

new text begin (c) Any retailer may participate, on a voluntary basis, as a designated collection point pursuant to a product stewardship program under this section and in accordance with applicable law. new text end

new text begin (d) No retailer or distributor shall be found to be in violation of this subdivision if, on the date the architectural paint was ordered from the producer or its agent, the producer was listed as compliant on the agency's Web site according to subdivision 14. new text end

new text begin Subd. 12. new text end

new text begin Stewardship reports. new text end

new text begin Beginning October 1, 2015, producers of architectural paint sold in the state must individually or through a stewardship organization submit an annual report to the agency describing the product stewardship program. At a minimum, the report must contain: new text end

new text begin (1) a description of the methods used to collect, transport, and process architectural paint in all regions of the state; new text end

new text begin (2) the weight of all architectural paint collected in all regions of the state and a comparison to the performance goals and recycling rates established in the stewardship plan; new text end

new text begin (3) the amount of unwanted architectural paint collected in the state by method of disposition, including reuse, recycling, and other methods of processing; new text end

new text begin (4) samples of educational materials provided to consumers and an evaluation of the effectiveness of the materials and the methods used to disseminate the materials; and new text end

new text begin (5) an independent financial audit. new text end

new text begin Subd. 13. new text end

new text begin Data classification. new text end

new text begin Trade secret and sales information, as defined under section 13.37, submitted to the agency under this section are private or nonpublic data under section 13.37. new text end

new text begin Subd. 14. new text end

new text begin Agency responsibilities. new text end

new text begin The agency shall provide, on its Web site, a list of all compliant producers and brands participating in stewardship plans that the agency has approved and a list of all producers and brands the agency has identified as noncompliant with this section. new text end

new text begin Subd. 15. new text end

new text begin Local government responsibilities. new text end

new text begin (a) A city, county, or other public agency may choose to participate voluntarily in a product stewardship program. new text end

new text begin (b) Cities, counties, and other public agencies are encouraged to work with producers and stewardship organizations to assist in meeting product stewardship program reuse and recycling obligations, by providing education and outreach or using other strategies. new text end

new text begin (c) A city, county, or other public agency that participates in a product stewardship program must report for the first year of the program to the agency using the reporting form provided by the agency on the cost savings as a result of participation and describe how the savings were used. new text end

new text begin Subd. 16. new text end

new text begin Administrative fee. new text end

new text begin (a) The stewardship organization or individual producer submitting a stewardship plan shall pay an annual administrative fee to the commissioner. The agency may establish a variable fee based on relevant factors, including, but not limited to, the portion of architectural paint sold in the state by members of the organization compared to the total amount of architectural paint sold in the state by all organizations submitting a stewardship plan. new text end

new text begin (b) Prior to July 1, 2014, and before July 1 annually thereafter, the agency shall identify the costs it incurs under this section. The agency shall set the fee at an amount that, when paid by every stewardship organization or individual producer that submits a stewardship plan, is adequate to reimburse the agency's full costs of administering this section. The total amount of annual fees collected under this subdivision must not exceed the amount necessary to reimburse costs incurred by the agency to administer this section. new text end

new text begin (c) A stewardship organization or individual producer subject to this subdivision must pay the agency's administrative fee under paragraph (a) on or before July 1, 2014 and annually thereafter. Each year after the initial payment, the annual administrative fee may not exceed five percent of the aggregate stewardship assessment added to the cost of all architectural paint sold by producers in the state for the preceding calendar year. new text end

new text begin (d) All fees received under this section shall be deposited to the state treasury and credited to a product stewardship account in the special revenue fund. For fiscal years 2014 and 2015, the amount collected under this section is annually appropriated to the agency to implement and enforce this section. new text end

Sec. 79.

new text begin [115A.142] REPORT TO LEGISLATURE AND GOVERNOR. new text end

new text begin As part of the report required under section 115A.121, the commissioner of the Pollution Control Agency shall provide a report to the governor and the legislature on the implementation of section 115A.1415. new text end

Sec. 80.

Minnesota Statutes 2012, section 115B.20, subdivision 6, is amended to read:

Subd. 6.

Report to legislature.

deleted text begin Each yeardeleted text end new text begin By January 31 of each odd-numbered yearnew text end , the commissioner of agriculture and the agency shall submit to the senate Finance Committee, the house of representatives 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 has been spent pursuant to this section during the previous fiscal year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013. new text end

Sec. 81.

Minnesota Statutes 2012, section 115B.28, subdivision 1, is amended to read:

Subdivision 1.

Duties.

In addition to performing duties specified in sections 115B.25 to 115B.37 or in other law, and subject to the limitations on disclosure contained in section 115B.35, the agency shall:

(1) adopt rules, including rules governing practice and procedure before the agency, the form and procedure for applications for compensation, and procedures for claims investigations;

(2) publicize the availability of compensation and application procedures on a statewide basis with special emphasis on geographical areas surrounding sites identified by the agency as having releases from a facility where a harmful substance was placed or came to be located prior to July 1, 1983;

(3) collect, analyze, and make available to the public, in consultation with the Department of Health, the Pollution Control Agency, the University of Minnesota Medical and Public Health Schools, and the medical community, data regarding injuries relating to exposure to harmful substances; and

(4) prepare and transmit deleted text begin by December 31 of each year to the governor anddeleted text end the deleted text begin legislature an annualdeleted text end new text begin legislativenew text end reportnew text begin required under section 115B.20, subdivision 6,new text end to include (i) a summary of agency activity under clause (3); (ii) data determined by the agency from actual cases, including but not limited to number of cases, actual compensation received by each claimant, types of cases, and types of injuries compensated, as they relate to types of harmful substances as well as length of exposure, but excluding identification of the claimants; (iii) all administrative costs associated with the business of the agency; and (iv) agency recommendations for legislative changes, further study, or any other recommendation aimed at improving the system of compensation.

Sec. 82.

Minnesota Statutes 2012, 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. deleted text begin The commissioner of management and budget 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.deleted text end 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 sections 115B.39 to 115B.444.

Sec. 83.

Minnesota Statutes 2012, section 115C.02, subdivision 4, is amended to read:

Subd. 4.

Corrective action.

"Corrective action" means an action taken to minimize, eliminate, or clean up a release to protect the public health and welfare or the environment.new text begin Corrective action may include, environmental covenants pursuant to chapter 114E, an affidavit required under section 116.48, subdivision 6, or similar notice of a release recorded with real property records.new text end

Sec. 84.

Minnesota Statutes 2012, 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;

(9) for contamination cleanup grants, as provided in paragraph (c);

(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; and

(11) deleted text begin for property acquisition by the agency when the agency has determined that purchasing a property where a release has occurred is the most appropriate corrective action. Thedeleted text end new text begin to acquire interests in real or personal property, including easements, environmental covenants under chapter 114E, and leases, that the agency determines are necessary for corrective actions or to ensure the protectiveness of corrective actions. A donation of an interest in real property to the agency is not effective until the agency executes a certificate of acceptance. The state is not liable under this chapter solely as a result of acquiring an interest in real property under this clause. Agency approval of an environmental covenant under chapter 114E is sufficient evidence of acceptance of an interest in real property when the agency is expressly identified as a holder in the covenant.new text end Acquisition of deleted text begin all propertiesdeleted text end new text begin real property under this clause, except environmental covenants under chapter 114E,new text end is subject to approval by the board.

(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) In fiscal years 2010 and 2011, $3,700,000 is annually appropriated from the fund to the commissioner of employment and economic development for contamination cleanup grants under section 116J.554. Beginning in fiscal year 2012 and each year thereafter, $6,200,000 is annually appropriated from the fund to the commissioner of employment and economic development for contamination cleanup grants under section 116J.554. Of this amount, the commissioner may spend up to $225,000 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 employment 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 or new and used tar and tar-like substances, including but not limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits in the earth or are distillates, fractions, or residues from the processing of petroleum crude or petroleum products as defined in section 296A.01; and

(2) the costs of performing contamination investigation if there is a reasonable basis to suspect the contamination is attributable to petroleum or new and used tar and tar-like substances, including but not limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits in the earth or are distillates, fractions, or residues from the processing of petroleum crude or petroleum products as defined in section 296A.01.

Sec. 85.

Minnesota Statutes 2012, section 115C.08, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Disposition of property acquired for corrective action. new text end

new text begin (a) If the commissioner determines that real or personal property acquired by the agency for a corrective action is no longer needed for corrective action purposes, the commissioner may: new text end

new text begin (1) request the commissioner of administration to dispose of the property according to sections 16B.281 to 16B.287, subject to conditions the commissioner of the Pollution Control Agency determines necessary to protect the public health and welfare and the environment or to comply with federal law; new text end

new text begin (2) transfer the property to another state agency, a political subdivision, or a special purpose district as provided in paragraph (b); or new text end

new text begin (3) if required by federal law, take actions and dispose of the property according to federal law. new text end

new text begin (b) If the commissioner determines that real or personal property acquired by the agency for a corrective action must be operated, maintained, or monitored after completion of other phases of the corrective action, the commissioner may transfer ownership of the property to another state agency, a political subdivision, or a special purpose district that agrees to accept the property. A state agency, political subdivision, or special purpose district may accept and implement 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 corrective 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 transfer. new text end

new text begin (c) The commissioner of administration may charge the agency for actual staff and other costs related to disposal of the property under paragraph (a), clause (1). The net proceeds of a sale or other transfer of property under this subdivision by the commissioner or by the commissioner of administration shall be deposited in the petroleum tank fund or other appropriate 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 fund to the agency for the purpose. Section 16B.287, subdivision 1, does not apply to real property that is sold by the commissioner of administration and that was acquired under subdivision 4, clause (11). new text end

Sec. 86.

Minnesota Statutes 2012, section 115D.10, is amended to read:

115D.10 TOXIC POLLUTION PREVENTION EVALUATION REPORT.

The commissioner, in cooperation with the commission, shall report 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 progress being made in achieving the objectives of sections 115D.01 to 115D.12. The report must be deleted text begin submitted by February 1 of each even-numbered yeardeleted text end new text begin done in conjunction with the report required under section 115A.121new text end .

Sec. 87.

Minnesota Statutes 2012, section 116.48, subdivision 6, is amended to read:

Subd. 6.

Affidavit.

new text begin (a) new text end Before transferring ownership of property that the owner knows contains an underground or aboveground storage tank or contained an underground or aboveground storage tank that had a release for which no corrective action was takennew text begin or if required by the agency as a condition of a corrective action under chapter 115Cnew text end , the owner shall record with the county recorder or registrar of titles of the county in which the property is located an affidavit containing:

(1) a legal description of the property where the tank is located;

(2) a description of the tank, of the location of the tank, and of any known release from the tank of a regulated substancenew text begin to the full extent known or reasonably ascertainablenew text end ;

(3) a description of any restrictions currently in force on the use of the property resulting from any release; and

(4) the name of the owner.

new text begin (b) new text end The county recorder shall record the affidavits in a manner that will insure their disclosure in the ordinary course of a title search of the subject property. Before transferring ownership of property that the owner knows contains an underground or aboveground storage tank, the owner shall deliver to the purchaser a copy of the affidavit and any additional information necessary to make the facts in the affidavit accurate as of the date of transfer of ownership.

new text begin (c) Failure to record an affidavit as provided in this subdivision does not affect or prevent any transfer of ownership of the property. new text end

Sec. 88.

Minnesota Statutes 2012, section 116C.03, subdivision 2, is amended to read:

Subd. 2.

Membership.

The members of the board are the deleted text begin director of the Office of Strategic and Long-Range Planningdeleted text end new text begin commissioner of administrationnew text end , the commissioner of commerce, the commissioner of the Pollution Control Agency, the commissioner of natural resources, the commissioner of agriculture, the commissioner of health, the commissioner of employment and economic development, the commissioner of transportation, the chair of the Board of Water and Soil Resources, and a representative of the governor's office designated by the governor. The governor shall appoint five members from the general public to the board, subject to the advice and consent of the senate. At least two of the five public members must have knowledge of and be conversant in water management issues in the state. Notwithstanding the provisions of section 15.06, subdivision 6, members of the board may not delegate their powers and responsibilities as board members to any other person.

Sec. 89.

Minnesota Statutes 2012, section 116C.03, subdivision 4, is amended to read:

Subd. 4.

Support.

Staff and consultant support for board activities shall be provided by the deleted text begin Office of Strategic and Long-Range Planningdeleted text end new text begin Pollution Control Agencynew text end . This support shall be provided based upon an annual budget and work program developed by the board and certified to the commissioner by the chair of the board. The board shall have the authority to request and require staff support from all other agencies of state government as needed for the execution of the responsibilities of the board.

Sec. 90.

Minnesota Statutes 2012, section 116C.03, subdivision 5, is amended to read:

Subd. 5.

Administration.

The board shall contract with the deleted text begin Office of Strategic and Long-Range Planningdeleted text end new text begin Pollution Control Agencynew text end for administrative services necessary to the board's activities. The services shall include personnel, budget, payroll and contract administration.

Sec. 91.

new text begin [116C.99] SILICA SAND MINING MODEL STANDARDS AND CRITERIA. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The definitions in this subdivision apply to sections 116C.99 to 116C.992. new text end

new text begin (a) "Local unit of government" means a county, statutory or home rule charter city, or town. new text end

new text begin (b) "Mining" means excavating silica sand by any process, including digging, excavating, drilling, blasting, tunneling, dredging, stripping, or by shaft. new text end

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

new text begin (d) "Silica sand" means well-rounded, sand-sized grains of quartz (silicon dioxide), with very little impurities in terms of other minerals. Specifically, the silica sand for the purposes of this section is commercially valuable for use in the hydraulic fracturing of shale to obtain oil and natural gas. Silica sand does not include common rock, stone, aggregate, gravel, sand with a low quartz level, or silica compounds recovered as a by-product of metallic mining. new text end

new text begin (e) "Silica sand project" means the excavation and mining and processing of silica sand; the washing, cleaning, screening, crushing, filtering, drying, sorting, stockpiling, and storing of silica sand, either at the mining site or at any other site; the hauling and transporting of silica sand; or a facility for transporting silica sand to destinations by rail, barge, truck, or other means of transportation. new text end

new text begin (f) "Temporary storage" means the storage of stock piles of silica sand that have been transported and await further transport. new text end

new text begin (g) "Transporting" means hauling and transporting silica sand, by any carrier: new text end

new text begin (1) from the mining site to a processing or transfer site; or new text end

new text begin (2) from a processing or storage site to a rail, barge, or transfer site for transporting to destinations. new text end

new text begin Subd. 2. new text end

new text begin Standards and criteria. new text end

new text begin (a) By October 1, 2013, the Environmental Quality Board, in consultation with local units of government, shall develop model standards and criteria for mining, processing, and transporting silica sand. These standards and criteria may be used by local units of government in developing local ordinances. The standards and criteria shall be different for different geographic areas of the state. The unique karst conditions and landforms of southeastern Minnesota shall be considered unique when compared with the flat scoured river terraces and uniform hydrology of the Minnesota Valley. The standards and criteria developed shall reflect those differences in varying regions of the state. The standards and criteria must include: new text end

new text begin (1) recommendations for setbacks or buffers for mining operation and processing, including: new text end

new text begin (i) any residence or residential zoning district boundary; new text end

new text begin (ii) any property line or right-of-way line of any existing or proposed street or highway; new text end

new text begin (iii) ordinary high water levels of public waters; new text end

new text begin (iv) bluffs; new text end

new text begin (v) designated trout streams, Class 2A water as designated in the rules of the Pollution Control Agency, or any perennially flowing tributary of a designated trout stream or Class 2A water; new text end

new text begin (vi) calcareous fens; new text end

new text begin (vii) wellhead protection areas as defined in section 103I.005; new text end

new text begin (viii) critical natural habitat acquired by the commissioner of natural resources under section 84.944; and new text end

new text begin (ix) a natural resource easement paid wholly or in part by public funds; new text end

new text begin (2) standards for hours of operation; new text end

new text begin (3) groundwater and surface water quality and quantity monitoring and mitigation plan requirements, including: new text end

new text begin (i) applicable groundwater and surface water appropriation permit requirements; new text end

new text begin (ii) well sealing requirements; new text end

new text begin (iii) annual submission of monitoring well data; and new text end

new text begin (iv) storm water runoff rate limits not to exceed two-, ten-, and 100-year storm events; new text end

new text begin (4) air monitoring and data submission requirements; new text end

new text begin (5) dust control requirements; new text end

new text begin (6) noise testing and mitigation plan requirements; new text end

new text begin (7) blast monitoring plan requirements; new text end

new text begin (8) lighting requirements; new text end

new text begin (9) inspection requirements; new text end

new text begin (10) containment requirements for silica sand in temporary storage to protect air and water quality; new text end

new text begin (11) containment requirements for chemicals used in processing; new text end

new text begin (12) financial assurance requirements; new text end

new text begin (13) road and bridge impacts and requirements; and new text end

new text begin (14) reclamation plan requirements as required under the rules adopted by the commissioner of natural resources. new text end

new text begin Subd. 3. new text end

new text begin Silica sand technical assistance team. new text end

new text begin By October 1, 2013, the Environmental Quality Board shall assemble a silica sand technical assistance team to provide local units of government, at their request, with assistance with ordinance development, zoning, environmental review and permitting, monitoring, or other issues arising from silica sand mining and processing operations. The technical assistance team may be chosen from representatives of the following entities: the Department of Natural Resources, the Pollution Control Agency, the Board of Water and Soil Resources, the Department of Health, the Department of Transportation, the University of Minnesota, the Minnesota State Colleges and Universities, and federal agencies. A majority of the members must be from a state agency and all members must have expertise in one or more of the following areas: silica sand mining, hydrology, air quality, water quality, land use, or other areas related to silica sand mining. new text end

new text begin Subd. 4. new text end

new text begin Consideration of technical assistance team recommendations. new text end

new text begin (a) When the technical assistance team, at the request of the local unit of government, assembles findings or makes a recommendation related to a proposed silica sand project for the protection of human health and the environment, a local government unit must consider the findings or recommendations of the technical assistance team in its approval or denial of a silica sand project. If the local government unit does not agree with the technical assistance team's findings and recommendations, the detailed reasons for the disagreement must be part of the local government unit's record of decision. new text end

new text begin (b) Silica sand project proposers must cooperate in providing local government unit staff, and members of the technical assistance team with information regarding the project. new text end

new text begin (c) When a local unit of government requests assistance from the silica sand technical assistance team for environmental review or permitting of a silica sand project the local unit of government may assess the project proposer for reasonable costs of the assistance and use the funds received to reimburse the entity providing that assistance. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 92.

new text begin [116C.991] ENVIRONMENTAL REVIEW; SILICA SAND PROJECTS. new text end

new text begin (a) Until two years after the effective date of this section, an environmental assessment worksheet must be prepared for any silica sand project that meets or exceeds the following thresholds, unless the project meets or exceeds the thresholds for an environmental impact statement under rules of the Environmental Quality Board and an environmental impact statement must be prepared: new text end

new text begin (1) excavates 20 or more acres of land to a mean depth of ten feet or more during its existence. The local government is the responsible governmental unit; or new text end

new text begin (2) is designed to store or is capable of storing more than 7,500 tons of silica sand or has an annual throughput of more than 200,000 tons of silica sand and is not required to receive a permit from the Pollution Control Agency. The Pollution Control Agency is the responsible governmental unit. new text end

new text begin (b) In addition to the contents required under statute and rule, an environmental assessment worksheet completed according to this section must include: new text end

new text begin (1) a hydrogeologic investigation assessing potential groundwater and surface water effects and geologic conditions that could create an increased risk of potentially significant effects on groundwater and surface water; new text end

new text begin (2) for a project with the potential to require a groundwater appropriation permit from the commissioner of natural resources, an assessment of the water resources available for appropriation; new text end

new text begin (3) an air quality impact assessment that includes an assessment of the potential effects from airborne particulates and dust; new text end

new text begin (4) a traffic impact analysis, including documentation of existing transportation systems, analysis of the potential effects of the project on transportation, and mitigation measures to eliminate or minimize adverse impacts; new text end

new text begin (5) an assessment of compatibility of the project with other existing uses; and new text end

new text begin (6) mitigation measures that could eliminate or minimize any adverse environmental effects for the project. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013, and no permit for a silica sand project subject to this section may be approved after that date unless the required environmental review has been completed. new text end

Sec. 93.

new text begin [116C.992] TECHNICAL ASSISTANCE, ORDINANCE, AND PERMIT LIBRARY. new text end

new text begin By October 1, 2013, the Environmental Quality Board, in consultation with local units of government, shall create and maintain a library on local government ordinances and local government permits that have been approved for regulation of silica sand projects for reference by local governments. new text end

Sec. 94.

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

new text begin Subd. 16. new text end

new text begin Groundwater; environmental assessment worksheets. new text end

new text begin When an environmental assessment worksheet is required for a proposed action that has the potential to require a groundwater appropriation permit from the commissioner of natural resources, the board shall require that the environmental assessment worksheet include an assessment of the water resources available for appropriation. new text end

Sec. 95.

Minnesota Statutes 2012, section 282.04, subdivision 1, is amended to read:

Subdivision 1.

Timber sales; land leases and uses.

(a) The county auditornew text begin , with terms and conditions set by the county board,new text end may sell timber upon any tract that may be approved by the natural resources commissioner. The sale of timber shall be made for cash at not less than the appraised value determined by the county board to the highest bidder after not less than one week's published notice in an official paper within the county. Any timber offered at the public sale and not sold may thereafter be sold at private sale by the county auditor at not less than the appraised value thereof, until the time as the county board may withdraw the timber from sale. The appraised value of the timber and the forestry practices to be followed in the cutting of said timber shall be approved by the commissioner of natural resources.

(b) Payment of the full sale price of all timber sold on tax-forfeited lands shall be made in cash at the time of the timber sale, except in the case of oral or sealed bid auction sales, the down payment shall be no less than 15 percent of the appraised value, and the balance shall be paid prior to entry. In the case of auction sales that are partitioned and sold as a single sale with predetermined cutting blocks, the down payment shall be no less than 15 percent of the appraised price of the entire timber sale which may be held until the satisfactory completion of the sale or applied in whole or in part to the final cutting block. The value of each separate block must be paid in full before any cutting may begin in that block. With the permission of the county contract administrator the purchaser may enter unpaid blocks and cut necessary timber incidental to developing logging roads as may be needed to log other blocks provided that no timber may be removed from an unpaid block until separately scaled and paid for. If payment is provided as specified in this paragraph as security under paragraph (a) and no cutting has taken place on the contract, the county auditor may credit the security provided, less any down payment required for an auction sale under this paragraph, to any other contract issued to the contract holder by the county under this chapter to which the contract holder requests in writing that it be credited, provided the request and transfer is made within the same calendar year as the security was received.

(c) The county board may sell any timber, including biomass, as appraised or scaled. Any parcels of land from which timber is to be sold by scale of cut products shall be so designated in the published notice of sale under paragraph (a), in which case the notice shall contain a description of the parcels, a statement of the estimated quantity of each species of timber, and the appraised price of each species of timber for 1,000 feet, per cord or per piece, as the case may be. In those cases any bids offered over and above the appraised prices shall be by percentage, the percent bid to be added to the appraised price of each of the different species of timber advertised on the land. The purchaser of timber from the parcels shall pay in cash at the time of sale at the rate bid for all of the timber shown in the notice of sale as estimated to be standing on the land, and in addition shall pay at the same rate for any additional amounts which the final scale shows to have been cut or was available for cutting on the land at the time of sale under the terms of the sale. Where the final scale of cut products shows that less timber was cut or was available for cutting under terms of the sale than was originally paid for, the excess payment shall be refunded from the forfeited tax sale fund upon the claim of the purchaser, to be audited and allowed by the county board as in case of other claims against the county. No timber, except hardwood pulpwood, may be removed from the parcels of land or other designated landings until scaled by a person or persons designated by the county board and approved by the commissioner of natural resources. Landings other than the parcel of land from which timber is cut may be designated for scaling by the county board by written agreement with the purchaser of the timber. The county board may, by written agreement with the purchaser and with a consumer designated by the purchaser when the timber is sold by the county auditor, and with the approval of the commissioner of natural resources, accept the consumer's scale of cut products delivered at the consumer's landing. No timber shall be removed until fully paid for in cash. Small amounts of timber not exceeding $3,000 in appraised valuation may be sold for not less than the full appraised value at private sale to individual persons without first publishing notice of sale or calling for bids, provided that in case of a sale involving a total appraised value of more than $200 the sale shall be made subject to final settlement on the basis of a scale of cut products in the manner above provided and not more than two of the sales, directly or indirectly to any individual shall be in effect at one time.

(d) As directed by the county board, the county auditor may lease tax-forfeited land to individuals, corporations or organized subdivisions of the state at public or private sale, and at the prices and under the terms as the county board may prescribe, for use as cottage and camp sites and for agricultural purposes and for the purpose of taking and removing of hay, stumpage, sand, gravel, clay, rock, marl, and black dirt from the land, and for garden sites and other temporary uses provided that no leases shall be for a period to exceed ten years; provided, further that any leases involving a consideration of more than $12,000 per year, except to an organized subdivision of the state shall first be offered at public sale in the manner provided herein for sale of timber. Upon the sale of any leased land, it shall remain subject to the lease for not to exceed one year from the beginning of the term of the lease. Any rent paid by the lessee for the portion of the term cut off by the cancellation shall be refunded from the forfeited tax sale fund upon the claim of the lessee, to be audited and allowed by the county board as in case of other claims against the county.

(e) As directed by the county board, the county auditor may lease tax-forfeited land to individuals, corporations, or organized subdivisions of the state at public or private sale, at the prices and under the terms as the county board may prescribe, for the purpose of taking and removing for use for road construction and other purposes tax-forfeited stockpiled iron-bearing material. The county auditor must determine that the material is needed and suitable for use in the construction or maintenance of a road, tailings basin, settling basin, dike, dam, bank fill, or other works on public or private property, and that the use would be in the best interests of the public. No lease shall exceed ten years. The use of a stockpile for these purposes must first be approved by the commissioner of natural resources. The request shall be deemed approved unless the requesting county is notified to the contrary by the commissioner of natural resources within six months after receipt of a request for approval for use of a stockpile. Once use of a stockpile has been approved, the county may continue to lease it for these purposes until approval is withdrawn by the commissioner of natural resources.

(f) The county auditor, with the approval of the county board is authorized to grant permits, licenses, and leases to tax-forfeited lands for the depositing of stripping, lean ores, tailings, or waste products from mines or ore milling plants, or to use for facilities needed to recover iron-bearing oxides from tailings basins or stockpiles, or for a buffer area needed for a mining operation, upon the conditions and for the consideration and for the period of time, not exceeding 25 years, as the county board may determine. The permits, licenses, or leases are subject to approval by the commissioner of natural resources.

(g) Any person who removes any timber from tax-forfeited land before said timber has been scaled and fully paid for as provided in this subdivision is guilty of a misdemeanor.

(h) The county auditor may, with the approval of the county board, and without first offering at public sale, grant leases, for a term not exceeding 25 years, for the removal of peat and for the production or removal of farm-grown closed-loop biomass as defined in section 216B.2424, subdivision 1, or short-rotation woody crops from tax-forfeited lands upon the terms and conditions as the county board may prescribe. Any lease for the removal of peat, farm-grown closed-loop biomass, or short-rotation woody crops from tax-forfeited lands must first be reviewed and approved by the commissioner of natural resources if the lease covers 320 or more acres. No lease for the removal of peat, farm-grown closed-loop biomass, or short-rotation woody crops shall be made by the county auditor pursuant to this section without first holding a public hearing on the auditor's intention to lease. One printed notice in a legal newspaper in the county at least ten days before the hearing, and posted notice in the courthouse at least 20 days before the hearing shall be given of the hearing.

(i) Notwithstanding any provision of paragraph (c) to the contrary, the St. Louis County auditor may, at the discretion of the county board, sell timber to the party who bids the highest price for all the several kinds of timber, as provided for sales by the commissioner of natural resources under section 90.14. Bids offered over and above the appraised price need not be applied proportionately to the appraised price of each of the different species of timber.

(j) In lieu of any payment or deposit required in paragraph (b), as directed by the county board and under terms set by the county board, the county auditor may accept an irrevocable bank letter of credit in the amount equal to the amount otherwise determined in paragraph (b). If an irrevocable bank letter of credit is provided under this paragraph, at the written request of the purchaser, the county may periodically allow the bank letter of credit to be reduced by an amount proportionate to the value of timber that has been harvested and for which the county has received payment. The remaining amount of the bank letter of credit after a reduction under this paragraph must not be less than 20 percent of the value of the timber purchased. If an irrevocable bank letter of credit or cash deposit is provided for the down payment required in paragraph (b), and no cutting of timber has taken place on the contract for which a letter of credit has been provided, the county may allow the transfer of the letter of credit to any other contract issued to the contract holder by the county under this chapter to which the contract holder requests in writing that it be credited.

Sec. 96.

new text begin [383B.761] DISCONTINUANCE OF HENNEPIN COUNTY SOIL AND WATER CONSERVATION DISTRICT; TRANSFER OF DUTIES. new text end

new text begin Subdivision 1. new text end

new text begin Petition. new text end

new text begin Notwithstanding section 103C.225, the Hennepin County Board of Commissioners may petition the Minnesota Board of Water and Soil Resources to discontinue the Hennepin Soil and Water Conservation District and transfer the duties and authorities of the district to the Hennepin County Board of Commissioners. The Minnesota Board of Water and Soil Resources has 60 days from the receipt of the petition to conduct its review. The Minnesota Board of Water and Soil Resources shall make its determination regarding the petition no later than its first regular meeting following the 60-day review period. new text end

new text begin Subd. 2. new text end

new text begin Discontinuance. new text end

new text begin The Minnesota Board of Water and Soil Resources shall review the petition submitted under subdivision 1 to determine whether progress toward the goals identified in section 103C.005 can be achieved by discontinuing the Hennepin Soil and Water Conservation District and transferring the duties and authorities of the district to the Hennepin County Board of Commissioners. If the Board of Water and Soil Resources determines that progress toward the goals identified in section 103C.005 can be achieved by the discontinuance of the district and the transfer of district duties and authorities to the Hennepin County Board of Commissioners, the Board of Water and Soil Resources shall order the discontinuance of the Hennepin Soil and Water Conservation District. The order shall become effective within 60 days from the date of the order. The Minnesota Board of Water and Soil Resources may discontinue the Hennepin Soil and Water Conservation District without a referendum. new text end

new text begin Subd. 3. new text end

new text begin Transfer of duties and authorities. new text end

new text begin Upon discontinuance of the Hennepin Soil and Water Conservation District by the Minnesota Board of Water and Soil Resources, the Hennepin County Board of Commissioners has the duties and authorities of a soil and water conservation district. The Hennepin County Board of Commissioners may assign these duties and responsibilities to the Hennepin County Department of Environmental Services or other county departments as deemed appropriate by the county board. All contracts in effect on the date of the discontinuance of the district, to which the Hennepin Soil and Water Conservation District is a party, remain in force and effect for the period provided in the contracts. Hennepin County shall be substituted for the Hennepin Soil and Water Conservation District as party to the contracts and succeed to the district's rights and duties. new text end

new text begin Subd. 4. new text end

new text begin Transfer of assets. new text end

new text begin The Hennepin Conservation District Board of Supervisors shall transfer the assets of the district to the Hennepin County Board of Commissioners no later than 60 days from the date of the order. The Hennepin County Board of Commissioners shall use the transferred assets for purposes of implementing the transferred duties and authorities. new text end

new text begin Subd. 5. new text end

new text begin Grants. new text end

new text begin Upon discontinuance of the Hennepin Soil and Water Conservation District by the Minnesota Board of Water and Soil Resources, Hennepin County has the eligibility of a soil and water conservation district for state grant funds. new text end

new text begin Subd. 6. new text end

new text begin Reestablishment. new text end

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

new text begin EFFECTIVE DATE; LOCAL APPROVAL. new text end

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

Sec. 97.

Minnesota Statutes 2012, section 473.846, is amended to read:

473.846 deleted text begin REPORTSdeleted text end new text begin REPORTnew text end TO LEGISLATURE.

The agency shall submit to the senate and house of representatives committees having jurisdiction over environment and natural resources deleted text begin separate reportsdeleted text end new text begin a reportnew text end describing the activities for which money for landfill abatement has been spent under deleted text begin sectionsdeleted text end new text begin sectionnew text end 473.844 deleted text begin and 473.845deleted text end . The report deleted text begin for section 473.844 expendituresdeleted text end shall be included in the report required by section 115A.411, and shall include recommendations on the future management and use of the metropolitan landfill abatement account. deleted text begin By December 31 of each year, the commissioner shall submit the report for section 473.845 on contingency action trust fund activities.deleted text end

Sec. 98.

Laws 2010, chapter 361, article 3, section 7, is amended to read:

Sec. 7.

PARKS.

The Minneapolis Park and Recreation Board may acquire all or part of the entire property known as the Scherer Brothers Lumber Yard for a metropolitan area regional park and may allocate any future appropriations to the board from the parks and trails fund to acquire the property.new text begin Notwithstanding Minnesota Rules, part 6115.0190, subpart 3 or 5, item E, or 6115.0191, subpart 8, item A, the Minneapolis Park and Recreation Board is authorized to recreate and restore Hall's Island or such similar island located at approximately river mile 855 on the Mississippi River, just north of the Plymouth Avenue bridge, at a project site in Section 15, Township 29 North, Range 24 West, Hennepin County, Minnesota, on or adjacent to the property known as the Scherer Brothers Lumber Yard. The commissioner of natural resources shall grant any authorizations, permits, or permissions necessary to effectuate the project, provided that the project is consistent with all other standards and guidelines in Minnesota Rules, chapter 6115. If the project is not constructed within six years of the effective date of this act, the authority provided in this section to reconstruct Hall's Island expires. The recreation and restoration shall be coordinated with future efforts to restore habitat along the Mississippi River. Once recreated and restored, Hall's Island shall remain in public ownership in perpetuity and shall be maintained as a natural habitat island for birds and other wildlife. Public access and recreational activities shall be limited to a walking trail to protect the island's wildlife and habitat.new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the Minneapolis Park and Recreation Board timely completes compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end

Sec. 99.

new text begin NORTH MISSISSIPPI REGIONAL PARK. new text end

new text begin (a) The boundaries of the North Mississippi Regional Park are extended to include the approximately 20.82 acres of land adjacent to the existing park known as Webber Park and that part of Shingle Creek that flows through Webber Park and continues through North Mississippi Regional Park into the Mississippi River. new text end

new text begin (b) Funds appropriated for North Mississippi Regional Park may be expended to provide for visitor amenities, including construction of a natural filtration swimming pool and a building for park users. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the Minneapolis Park and Recreation Board and its chief clerical officer timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end

Sec. 100.

new text begin WASTEWATER TREATMENT SYSTEMS; BENEFICIAL USE. new text end

new text begin The Pollution Control Agency shall apply the following criteria to wastewater treatment system projects: at least 30 points shall be assigned if a project will result in an agency-approved beneficial use of treated wastewater that results in reducing or replacing the use of groundwater, surface water, or potable water, provided that the project component resulting in the beneficial use of wastewater accounts for at least 20 percent of the total eligible cost of the project. Projects receiving points for land discharge beneficial use shall not receive an additional 30 points. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013. new text end

Sec. 101.

new text begin PERMIT CANCELLATION. new text end

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

Sec. 102.

new text begin GROUNDWATER SUSTAINABILITY RECOMMENDATIONS. new text end

new text begin The commissioner of natural resources shall develop recommendations on additional tools needed to fully implement the groundwater sustainability requirements of Minnesota Statutes, section 103G.287, subdivisions 3 and 5. The recommendations shall be submitted to the chairs of the environment and natural resources policy and finance committees by January 15, 2014, and shall include draft legislative language to implement the recommendations. new text end

Sec. 103.

new text begin RULEMAKING; POSSESSION AND TRANSPORTATION OF WILDLIFE. new text end

new text begin The commissioner of natural resources may use the good cause exemption under Minnesota Statutes, section 14.388, subdivision 1, clause (3), to adopt rules to conform with the changes to Minnesota Statutes 2012, section 97A.401, subdivision 3, contained in this article, and Minnesota Statutes, section 14.386, does not apply except as provided under Minnesota Statutes, section 14.388. new text end

Sec. 104.

new text begin RULEMAKING; DISPLAY OF PADDLE BOARD LICENSE NUMBERS. new text end

new text begin (a) The commissioner of natural resources shall amend Minnesota Rules, parts 6110.0200, 6110.0300, and 6110.0400, to exempt paddle boards from the requirement to display license certificates and license numbers, in the same manner as other nonmotorized watercraft such as canoes and kayaks. new text end

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

Sec. 105.

new text begin RULES; SILICA SAND. new text end

new text begin (a) The commissioner of the Pollution Control Agency shall adopt rules pertaining to the control of particulate emissions from silica sand projects. The rulemaking is exempt from Minnesota Statutes, section 14.125. new text end

new text begin (b) The commissioner of natural resources shall adopt rules pertaining to the reclamation of silica sand mines. The rulemaking is exempt from Minnesota Statutes, section 14.125. new text end

new text begin (c) By January 1, 2014, the Department of Health shall adopt an air quality health-based value for silica sand. new text end

new text begin (d) The Environmental Quality Board shall amend its rules for environmental review, adopted under Minnesota Statutes, chapter 116D, for silica sand mining and processing to take into account the increased activity in the state and concerns over the size of specific operations. The Environmental Quality Board shall consider whether the requirements of Minnesota Statutes, section 116C.991, should remain part of the environmental review requirements for silica sand and whether the requirements should be different for different geographic areas of the state. The rulemaking is exempt from Minnesota Statutes, section 14.125. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 106.

new text begin INTERIM ORDINANCE EXTENSION OR RENEWAL. new text end

new text begin Notwithstanding Minnesota Statutes, sections 394.34 and 462.355, subdivision 4, until March 1, 2015, a local unit of government may extend for one year an interim ordinance or renew an expired ordinance prohibiting new or expanded silica sand projects, as defined in Minnesota Statutes, section 116C.99, and extend the ordinance an additional year by resolution of the local unit of government. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 107.

new text begin RULEMAKING; FUGITIVE EMISSIONS. new text end

new text begin (a) The commissioner of the Pollution Control Agency shall amend Minnesota Rules, part 7005.0100, subpart 35a, to read: new text end

new text begin ""Potential emissions" or "potential to emit" means the maximum capacity while operating at the maximum hours of operation of an emissions unit, emission facility, or stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitation on the capacity of the stationary source to emit a pollutant, including air pollution control equipment and restriction on hours of operation or on the type or amount of material combusted, stored, or processed, must be treated as part of its design if the limitation or the effect it would have on emissions is federally enforceable. new text end

new text begin Secondary emissions must not be counted in determining the potential to emit of an emissions unit, emission facility, or stationary source. Fugitive emissions shall not be counted when determining potential to emit, unless required under Minnesota Rules, part 7007.0200, subpart 2, item B, or applicable federal regulation." new text end

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

Sec. 108.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Statutes 2012, sections 90.163; 90.173; 90.41, subdivision 2; and 103G.265, subdivision 2a, new text end new text begin and new text end new text begin Minnesota Rules, parts 7021.0010, subparts 1, 2, 4, and 5; 7021.0020; 7021.0030; 7021.0040; 7021.0050, subpart 5; 9210.0300; 9210.0310; 9210.0320; 9210.0330; 9210.0340; 9210.0350; 9210.0360; 9210.0370; 9210.0380; and 9220.0530, subpart 6, new text end new text begin are repealed. new text end

new text begin (b) new text end new text begin Laws 2011, First Special Session chapter 2, article 4, section 30, new text end new text begin is repealed. new text end

ARTICLE 5

SANITARY DISTRICTS

Section 1.

Minnesota Statutes 2012, section 275.066, is amended to read:

275.066 SPECIAL TAXING DISTRICTS; DEFINITION.

For the purposes of property taxation and property tax state aids, the term "special taxing districts" includes the following entities:

(1) watershed districts under chapter 103D;

(2) sanitary districts under sections deleted text begin 115.18 to 115.37deleted text end new text begin 442A.01 to 442A.29new text end ;

(3) regional sanitary sewer districts under sections 115.61 to 115.67;

(4) regional public library districts under section 134.201;

(5) park districts under chapter 398;

(6) regional railroad authorities under chapter 398A;

(7) hospital districts under sections 447.31 to 447.38;

(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;

(9) Duluth Transit Authority under sections 458A.21 to 458A.37;

(10) regional development commissions under sections 462.381 to 462.398;

(11) housing and redevelopment authorities under sections 469.001 to 469.047;

(12) port authorities under sections 469.048 to 469.068;

(13) economic development authorities under sections 469.090 to 469.1081;

(14) Metropolitan Council under sections 473.123 to 473.549;

(15) Metropolitan Airports Commission under sections 473.601 to 473.680;

(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;

(17) Morrison County Rural Development Financing Authority under Laws 1982, chapter 437, section 1;

(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;

(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections 1 to 6;

(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5, section 39;

(21) Middle Mississippi River Watershed Management Organization under sections 103B.211 and 103B.241;

(22) emergency medical services special taxing districts under section 144F.01;

(23) a county levying under the authority of section 103B.241, 103B.245, or 103B.251;

(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home under Laws 2003, First Special Session chapter 21, article 4, section 12;

(25) an airport authority created under section 360.0426; and

(26) any other political subdivision of the state of Minnesota, excluding counties, school districts, cities, and towns, that has the power to adopt and certify a property tax levy to the county auditor, as determined by the commissioner of revenue.

Sec. 2.

new text begin [442A.01] DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin For the purposes of this chapter, the terms defined in this section have the meanings given. new text end

new text begin Subd. 2. new text end

new text begin Chief administrative law judge. new text end

new text begin "Chief administrative law judge" means the chief administrative law judge of the Office of Administrative Hearings or the delegate of the chief administrative law judge under section 14.48. new text end

new text begin Subd. 3. new text end

new text begin District. new text end

new text begin "District" means a sanitary district created under this chapter or under Minnesota Statutes 2012, sections 115.18 to 115.37. new text end

new text begin Subd. 4. new text end

new text begin Municipality. new text end

new text begin "Municipality" means a city, however organized. new text end

new text begin Subd. 5. new text end

new text begin Property owner. new text end

new text begin "Property owner" means the fee owner of land, or the beneficial owner of land whose interest is primarily one of possession and enjoyment. Property owner includes, but is not limited to, vendees under a contract for deed and mortgagors. Any reference to a percentage of property owners means in number. new text end

new text begin Subd. 6. new text end

new text begin Related governing body. new text end

new text begin "Related governing body" means the governing body of a related governmental subdivision and, in the case of an organized town, means the town board. new text end

new text begin Subd. 7. new text end

new text begin Related governmental subdivision. new text end

new text begin "Related governmental subdivision" means a municipality or organized town wherein there is a territorial unit of a district or, in the case of an unorganized area, the county. new text end

new text begin Subd. 8. new text end

new text begin Territorial unit. new text end

new text begin "Territorial unit" means all that part of a district situated within a single municipality, within a single organized town outside of a municipality, or, in the case of an unorganized area, within a single county. new text end

Sec. 3.

new text begin [442A.015] APPLICABILITY. new text end

new text begin All new sanitary district formations proposed and all sanitary districts previously formed under Minnesota Statutes 2012, sections 115.18 to 115.37, must comply with this chapter, including annexations to, detachments from, and dissolutions of sanitary districts previously formed under Minnesota Statutes 2012, sections 115.18 to 115.37. new text end

Sec. 4.

new text begin [442A.02] SANITARY DISTRICTS; PROCEDURES AND AUTHORITY. new text end

new text begin Subdivision 1. new text end

new text begin Duty of chief administrative law judge. new text end

new text begin The chief administrative law judge shall conduct proceedings, make determinations, and issue orders for the creation of a sanitary district formed under this chapter or the annexation, detachment, or dissolution of a sanitary district previously formed under Minnesota Statutes 2012, sections 115.18 to 115.37. new text end

new text begin Subd. 2. new text end

new text begin Consolidation of proceedings. new text end

new text begin The chief administrative law judge may order the consolidation of separate proceedings in the interest of economy and expedience. new text end

new text begin Subd. 3. new text end

new text begin Contracts, consultants. new text end

new text begin The chief administrative law judge may contract with regional, state, county, or local planning commissions and hire expert consultants to provide specialized information and assistance. new text end

new text begin Subd. 4. new text end

new text begin Powers of conductor of proceedings. new text end

new text begin Any person conducting a proceeding under this chapter may administer oaths and affirmations; receive testimony of witnesses, and the production of papers, books, and documents; examine witnesses; and receive and report evidence. Upon the written request of a presiding administrative law judge or a party, the chief administrative law judge may issue a subpoena for the attendance of a witness or the production of books, papers, records, or other documents material to any proceeding under this chapter. The subpoena is enforceable through the district court in the district in which the subpoena is issued. new text end

new text begin Subd. 5. new text end

new text begin Rulemaking authority. new text end

new text begin The chief administrative law judge may adopt rules that are reasonably necessary to carry out the duties and powers imposed upon the chief administrative law judge under this chapter. The chief administrative law judge may initially adopt rules according to section 14.386. Notwithstanding section 16A.1283, the chief administrative law judge may adopt rules establishing fees. new text end

new text begin Subd. 6. new text end

new text begin Schedule of filing fees. new text end

new text begin The chief administrative law judge may prescribe by rule a schedule of filing fees for any petitions filed under this chapter. new text end

new text begin Subd. 7. new text end

new text begin Request for hearing transcripts; costs. new text end

new text begin Any party may request the chief administrative law judge to cause a transcript of the hearing to be made. Any party requesting a copy of the transcript is responsible for its costs. new text end

new text begin Subd. 8. new text end

new text begin Compelled meetings; report. new text end

new text begin (a) In any proceeding under this chapter, the chief administrative law judge or conductor of the proceeding may at any time in the process require representatives from any petitioner, property owner, or involved city, town, county, political subdivision, or other governmental entity to meet together to discuss resolution of issues raised by the petition or order that confers jurisdiction on the chief administrative law judge and other issues of mutual concern. The chief administrative law judge or conductor of the proceeding may determine which entities are required to participate in these discussions. The chief administrative law judge or conductor of the proceeding may require that the parties meet at least three times during a 60-day period. The parties shall designate a person to report to the chief administrative law judge or conductor of the proceeding on the results of the meetings immediately after the last meeting. The parties may be granted additional time at the discretion of the chief administrative law judge or conductor of the proceedings. new text end

new text begin (b) Any proposed resolution or settlement of contested issues that results in a sanitary district formation, annexation, detachment, or dissolution; places conditions on any future sanitary district formation, annexation, detachment, or dissolution; or results in the withdrawal of an objection to a pending proceeding or the withdrawal of a pending proceeding must be filed with the chief administrative law judge and is subject to the applicable procedures and statutory criteria of this chapter. new text end

new text begin Subd. 9. new text end

new text begin Permanent official record. new text end

new text begin The chief administrative law judge shall provide information about sanitary district creations, annexations, detachments, and dissolutions to the Minnesota Pollution Control Agency. The Minnesota Pollution Control Agency is responsible for maintaining the official record, including all documentation related to the processes. new text end

new text begin Subd. 10. new text end

new text begin Shared program costs and fee revenue. new text end

new text begin The chief administrative law judge and the Minnesota Pollution Control Agency shall agree on an amount to be transferred from the Minnesota Pollution Control Agency to the chief administrative law judge to pay for administration of this chapter, including publication and notification costs. Sanitary district fees collected by the chief administrative law judge shall be deposited in the environmental fund. new text end

new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 5 is effective the day following final enactment. new text end

Sec. 5.

new text begin [442A.03] FILING OF MAPS IN SANITARY DISTRICT PROCEEDINGS. new text end

new text begin Any party initiating a sanitary district proceeding that includes platted land shall file with the chief administrative law judge maps which are necessary to support and identify the land description. The maps shall include copies of plats. new text end

Sec. 6.

new text begin [442A.04] SANITARY DISTRICT CREATION. new text end

new text begin Subdivision 1. new text end

new text begin Sanitary district creation. new text end

new text begin (a) A sanitary district may be created under this chapter for any territory embracing an area or a group of two or more adjacent areas, whether contiguous or separate, but not situated entirely within the limits of a single municipality. The proposed sanitary district must promote the public health and welfare by providing an adequate and efficient system and means of collecting, conveying, pumping, treating, and disposing of domestic sewage and garbage and industrial wastes within the district. When the chief administrative law judge or the Minnesota Pollution Control Agency finds that there is need throughout the territory for the accomplishment of these purposes; that these purposes can be effectively accomplished on an equitable basis by a district if created; and that the creation and maintenance of a district will be administratively feasible and in furtherance of the public health, safety, and welfare, the chief administrative law judge shall make an order creating the sanitary district. A sanitary district is administratively feasible under this section if the district has the financial and managerial resources needed to deliver adequate and efficient sanitary sewer services within the proposed district. new text end

new text begin (b) Notwithstanding paragraph (a), no district shall be created within 25 miles of the boundary of any city of the first class without the approval of the governing body thereof and the approval of the governing body of each and every municipality in the proposed district by resolution filed with the chief administrative law judge. new text end

new text begin (c) If the chief administrative law judge and the Minnesota Pollution Control Agency disagree on the need to create a sanitary district, they must determine whether not allowing the sanitary district formation will have a detrimental effect on the environment. If it is determined that the sanitary district formation will prevent environmental harm, the sanitary district creation or connection to an existing wastewater treatment system must occur. new text end

new text begin Subd. 2. new text end

new text begin Proceeding to create sanitary district. new text end

new text begin (a) A proceeding for the creation of a district may be initiated by a petition to the chief administrative law judge containing the following: new text end

new text begin (1) a request for creation of the proposed district; new text end

new text begin (2) the name proposed for the district, to include the words "sanitary district"; new text end

new text begin (3) a legal description of the territory of the proposed district, including justification for inclusion or exclusion for all parcels; new text end

new text begin (4) addresses of every property owner within the proposed district boundaries as provided by the county auditor, with certification from the county auditor; two sets of address labels for said owners; and a list of e-mail addresses for said owners, if available; new text end

new text begin (5) a statement showing the existence in the territory of the conditions requisite for creation of a district as prescribed in subdivision 1; new text end

new text begin (6) a statement of the territorial units represented by and the qualifications of the respective signers; and new text end

new text begin (7) the post office address of each signer, given under the signer's signature. new text end

new text begin A petition may consist of separate writings of like effect, each signed by one or more qualified persons, and all such writings, when filed, shall be considered together as a single petition. new text end

new text begin (b) Petitioners must conduct and pay for a public meeting to inform citizens of the proposed creation of the district. At the meeting, information must be provided, including a description of the district's proposed structure, bylaws, territory, ordinances, budget, and charges and a description of the territory of the proposed district, including justification for inclusion or exclusion for all parcels. Notice of the meeting must be published for two successive weeks in a qualified newspaper, as defined under chapter 331A, published within the territory of the proposed district or, if there is no qualified newspaper published within the territory, in a qualified newspaper of general circulation in the territory, and must be posted for two weeks in each territorial unit of the proposed district and on the Web site of the proposed district, if one exists. Notice of the meeting must be mailed or e-mailed at least three weeks prior to the meeting to all property tax billing addresses for all parcels included in the proposed district. The following must be submitted to the chief administrative law judge with the petition: new text end

new text begin (1) a record of the meeting, including copies of all information provided at the meeting; new text end

new text begin (2) new text end new text begin a copy of the mailing list provided by the county auditor and used to notify property owners of the meeting; new text end

new text begin (3) a copy of the e-mail list used to notify property owners of the meeting; new text end

new text begin (4) the printer's affidavit of publication of public meeting notice; new text end

new text begin (5) an affidavit of posting the public meeting notice with information on dates and locations of posting; and new text end

new text begin (6) the minutes or other record of the public meeting documenting that the following topics were discussed: printer's affidavit of publication of each resolution, with a copy of the resolution from the newspaper attached; and the affidavit of resolution posting on the town or proposed district Web site. new text end

new text begin (c) Every petition must be signed as follows: new text end

new text begin (1) for each municipality wherein there is a territorial unit of the proposed district, by an authorized officer pursuant to a resolution of the municipal governing body; new text end

new text begin (2) for each organized town wherein there is a territorial unit of the proposed district, by an authorized officer pursuant to a resolution of the town board; new text end

new text begin (3) for each county wherein there is a territorial unit of the proposed district consisting of an unorganized area, by an authorized officer pursuant to a resolution of the county board or by at least 20 percent of the voters residing and owning land within the unit. new text end

new text begin (d) Each resolution must be published in the official newspaper of the governing body adopting it and becomes effective 40 days after publication, unless within said period there shall be filed with the governing body a petition signed by qualified electors of a territorial unit of the proposed district, equal in number to five percent of the number of electors voting at the last preceding election of the governing body, requesting a referendum on the resolution, in which case the resolution may not become effective until approved by a majority of the qualified electors voting at a regular election or special election that the governing body may call. The notice of an election and the ballot to be used must contain the text of the resolution followed by the question: "Shall the above resolution be approved?" new text end

new text begin (e) If any signer is alleged to be a landowner in a territorial unit, a statement as to the signer's landowner status as shown by the county auditor's tax assessment records, certified by the auditor, shall be attached to or endorsed upon the petition. new text end

new text begin (f) At any time before publication of the public notice required in subdivision 3, additional signatures may be added to the petition or amendments of the petition may be made to correct or remedy any error or defect in signature or otherwise except a material error or defect in the description of the territory of the proposed district. If the qualifications of any signer of a petition are challenged, the chief administrative law judge shall determine the challenge forthwith on the allegations of the petition, the county auditor's certificate of land ownership, and such other evidence as may be received. new text end

new text begin Subd. 3. new text end

new text begin Notice of intent to create sanitary district. new text end

new text begin (a) Upon receipt of a petition and the record of the public meeting required under subdivision 2, the chief administrative law judge shall publish a notice of intent to create the proposed sanitary district in the State Register and mail or e-mail information of that publication to each property owner in the affected territory at the owner's address as given by the county auditor. The information must state the date that the notice will appear in the State Register and give the Web site location for the State Register. The notice must: new text end

new text begin (1) describe the petition for creation of the district; new text end

new text begin (2) describe the territory affected by the petition; new text end

new text begin (3) allow 30 days for submission of written comments on the petition; new text end

new text begin (4) state that a person who objects to the petition may submit a written request for hearing to the chief administrative law judge within 30 days of the publication of the notice in the State Register; and new text end

new text begin (5) state that if a timely request for hearing is not received, the chief administrative law judge may make a decision on the petition. new text end

new text begin (b) If 50 or more individual timely requests for hearing are received, the chief administrative law judge must hold a hearing on the petition according to the contested case provisions of chapter 14. The sanitary district proposers are responsible for paying all costs involved in publicizing and holding a hearing on the petition. new text end

new text begin Subd. 4. new text end

new text begin Hearing time, place. new text end

new text begin If a hearing is required pursuant to subdivision 3, the chief administrative law judge shall designate a time and place for a hearing according to section 442A.13. new text end

new text begin Subd. 5. new text end

new text begin Relevant factors. new text end

new text begin (a) In arriving at a decision, the chief administrative law judge shall consider the following factors: new text end

new text begin (1) administrative feasibility under subdivision 1, paragraph (a); new text end

new text begin (2) public health, safety, and welfare impacts; new text end

new text begin (3) alternatives for managing the public health impacts; new text end

new text begin (4) equities of the petition proposal; new text end

new text begin (5) contours of the petition proposal; and new text end

new text begin (6) public notification of and interaction on the petition proposal. new text end

new text begin (b) Based on the factors in paragraph (a), the chief administrative law judge may order the sanitary district creation on finding that: new text end

new text begin (1) the proposed district is administratively feasible; new text end

new text begin (2) the proposed district provides a long-term, equitable solution to pollution problems affecting public health, safety, and welfare; new text end

new text begin (3) property owners within the proposed district were provided notice of the proposed district and opportunity to comment on the petition proposal; and new text end

new text begin (4) the petition complied with the requirements of all applicable statutes and rules pertaining to sanitary district creation. new text end

new text begin (c) The chief administrative law judge may alter the boundaries of the proposed sanitary district by increasing or decreasing the area to be included or may exclude property that may be better served by another unit of government. The chief administrative law judge may also alter the boundaries of the proposed district so as to follow visible, clearly recognizable physical features for municipal boundaries. new text end

new text begin (d) The chief administrative law judge may deny sanitary district creation if the area, or a part thereof, would be better served by an alternative method. new text end

new text begin (e) In all cases, the chief administrative law judge shall set forth the factors that are the basis for the decision. new text end

new text begin Subd. 6. new text end

new text begin Findings; order. new text end

new text begin After the public notice period or the public hearing, if required under subdivision 3, and based on the petition, any public comments received, and, if a hearing was held, the hearing record, the chief administrative law judge shall make findings of fact and conclusions determining whether the conditions requisite for the creation of a district exist in the territory described in the petition. If the chief administrative law judge finds that the conditions exist, the judge may make an order creating a district for the territory described in that petition under the name proposed in the petition or such other name, including the words "sanitary district," as the judge deems appropriate. new text end

new text begin Subd. 7. new text end

new text begin Denial of petition. new text end

new text begin If the chief administrative law judge, after conclusion of the public notice period or holding a hearing, if required, determines that the creation of a district in the territory described in the petition is not warranted, the judge shall make an order denying the petition. The chief administrative law judge shall give notice of the denial by mail or e-mail to each signer of the petition. No petition for the creation of a district consisting of the same territory shall be entertained within a year after the date of an order under this subdivision. Nothing in this subdivision precludes action on a petition for the creation of a district embracing part of the territory with or without other territory. new text end

new text begin Subd. 8. new text end

new text begin Notice of order creating sanitary district. new text end

new text begin The chief administrative law judge shall publish a notice in the State Register of the final order creating a sanitary district, referring to the date of the order and describing the territory of the district, and shall mail or e-mail information of the publication to each property owner in the affected territory at the owner's address as given by the county auditor. The information must state the date that the notice will appear in the State Register and give the Web site location for the State Register. The notice must: new text end

new text begin (1) describe the petition for creation of the district; new text end

new text begin (2) describe the territory affected by the petition; and new text end

new text begin (3) state that a certified copy of the order shall be delivered to the secretary of state for filing ten days after public notice of the order in the State Register. new text end

new text begin Subd. 9. new text end

new text begin Filing. new text end

new text begin Ten days after public notice of the order in the State Register, the chief administrative law judge shall deliver a certified copy of the order to the secretary of state for filing. Thereupon, the creation of the district is deemed complete, and it shall be conclusively presumed that all requirements of law relating thereto have been complied with. The chief administrative law judge shall also transmit a certified copy of the order for filing to the county auditor of each county and the clerk or recorder of each municipality and organized town wherein any part of the territory of the district is situated and to the secretary of the district board when elected. new text end

Sec. 7.

new text begin [442A.05] SANITARY DISTRICT ANNEXATION. new text end

new text begin Subdivision 1. new text end

new text begin Annexation. new text end

new text begin (a) A sanitary district annexation may occur under this chapter for any area adjacent to an existing district upon a petition to the chief administrative law judge stating the grounds therefor as provided in this section. new text end

new text begin (b) The proposed annexation area must embrace an area or a group of two or more adjacent areas, whether contiguous or separate, but not situated entirely within the limits of a single municipality. The proposed annexation must promote public health and welfare by providing an adequate and efficient system and means of collecting, conveying, pumping, treating, and disposing of domestic sewage and garbage and industrial wastes within the district. When the chief administrative law judge or the Minnesota Pollution Control Agency finds that there is need throughout the territory for the accomplishment of these purposes, that these purposes can be effectively accomplished on an equitable basis by annexation to a district, and that the creation and maintenance of such annexation will be administratively feasible and in furtherance of the public health, safety, and welfare, the chief administrative law judge shall make an order for sanitary district annexation. An annexation is administratively feasible under this section if the district has the financial and managerial resources needed to deliver adequate and efficient sanitary sewer services within the proposed annexation. new text end

new text begin (c) Notwithstanding paragraph (b), no annexation to a district shall be approved within 25 miles of the boundary of any city of the first class without the approval of the governing body thereof and the approval of the governing body of each and every municipality in the proposed annexation area by resolution filed with the chief administrative law judge. new text end

new text begin (d) If the chief administrative law judge and the Minnesota Pollution Control Agency disagree on the need for a sanitary district annexation, they must determine whether not allowing the sanitary district annexation will have a detrimental effect on the environment. If it is determined that the sanitary district annexation will prevent environmental harm, the sanitary district annexation or connection to an existing wastewater treatment system must occur. new text end

new text begin Subd. 2. new text end

new text begin Proceeding for annexation. new text end

new text begin (a) A proceeding for sanitary district annexation may be initiated by a petition to the chief administrative law judge containing the following: new text end

new text begin (1) a request for proposed annexation to a sanitary district; new text end

new text begin (2) a legal description of the territory of the proposed annexation, including justification for inclusion or exclusion for all parcels; new text end

new text begin (3) addresses of every property owner within the existing sanitary district and proposed annexation area boundaries as provided by the county auditor, with certification from the county auditor; two sets of address labels for said owners; and a list of e-mail addresses for said owners, if available; new text end

new text begin (4) a statement showing the existence in such territory of the conditions requisite for annexation to a district as prescribed in subdivision 1; new text end

new text begin (5) a statement of the territorial units represented by and qualifications of the respective signers; and new text end

new text begin (6) the post office address of each signer, given under the signer's signature. new text end

new text begin A petition may consist of separate writings of like effect, each signed by one or more qualified persons, and all such writings, when filed, shall be considered together as a single petition. new text end

new text begin (b) Petitioners must conduct and pay for a public meeting to inform citizens of the proposed annexation to a sanitary district. At the meeting, information must be provided, including a description of the existing sanitary district's structure, bylaws, territory, ordinances, budget, and charges; a description of the existing sanitary district's territory; and a description of the territory of the proposed annexation area, including justification for inclusion or exclusion for all parcels for the annexation area. Notice of the meeting must be published for two successive weeks in a qualified newspaper, as defined under chapter 331A, published within the territories of the existing sanitary district and proposed annexation area or, if there is no qualified newspaper published within those territories, in a qualified newspaper of general circulation in the territories, and must be posted for two weeks in each territorial unit of the existing sanitary district and proposed annexation area and on the Web site of the existing sanitary district, if one exists. Notice of the meeting must be mailed or e-mailed at least three weeks prior to the meeting to all property tax billing addresses for all parcels included in the existing sanitary district and proposed annexation area. The following must be submitted to the chief administrative law judge with the petition: new text end

new text begin (1) a record of the meeting, including copies of all information provided at the meeting; new text end

new text begin (2) a copy of the mailing list provided by the county auditor and used to notify property owners of the meeting; new text end

new text begin (3) a copy of the e-mail list used to notify property owners of the meeting; new text end

new text begin (4) the printer's affidavit of publication of the public meeting notice; new text end

new text begin (5) an affidavit of posting the public meeting notice with information on dates and locations of posting; and new text end

new text begin (6) the minutes or other record of the public meeting documenting that the following topics were discussed: printer's affidavit of publication of each resolution, with copy of resolution from newspaper attached; and affidavit of resolution posting on town or existing sanitary district Web site. new text end

new text begin (c) Every petition must be signed as follows: new text end

new text begin (1) by an authorized officer of the existing sanitary district pursuant to a resolution of the board; new text end

new text begin (2) for each municipality wherein there is a territorial unit of the proposed annexation area, by an authorized officer pursuant to a resolution of the municipal governing body; new text end

new text begin (3) for each organized town wherein there is a territorial unit of the proposed annexation area, by an authorized officer pursuant to a resolution of the town board; and new text end

new text begin (4) for each county wherein there is a territorial unit of the proposed annexation area consisting of an unorganized area, by an authorized officer pursuant to a resolution of the county board or by at least 20 percent of the voters residing and owning land within the unit. new text end

new text begin (d) Each resolution must be published in the official newspaper of the governing body adopting it and becomes effective 40 days after publication, unless within said period there shall be filed with the governing body a petition signed by qualified electors of a territorial unit of the proposed annexation area, equal in number to five percent of the number of electors voting at the last preceding election of the governing body, requesting a referendum on the resolution, in which case the resolution may not become effective until approved by a majority of the qualified electors voting at a regular election or special election that the governing body may call. The notice of an election and the ballot to be used must contain the text of the resolution followed by the question: "Shall the above resolution be approved?" new text end

new text begin (e) If any signer is alleged to be a landowner in a territorial unit, a statement as to the signer's landowner status as shown by the county auditor's tax assessment records, certified by the auditor, shall be attached to or endorsed upon the petition. new text end

new text begin (f) At any time before publication of the public notice required in subdivision 4, additional signatures may be added to the petition or amendments of the petition may be made to correct or remedy any error or defect in signature or otherwise except a material error or defect in the description of the territory of the proposed annexation area. If the qualifications of any signer of a petition are challenged, the chief administrative law judge shall determine the challenge forthwith on the allegations of the petition, the county auditor's certificate of land ownership, and such other evidence as may be received. new text end

new text begin Subd. 3. new text end

new text begin Joint petition. new text end

new text begin Different areas may be annexed to a district in a single proceeding upon a joint petition therefor and upon compliance with the provisions of subdivisions 1 and 2 with respect to the area affected so far as applicable. new text end

new text begin Subd. 4. new text end

new text begin Notice of intent for sanitary district annexation. new text end

new text begin (a) Upon receipt of a petition and the record of public meeting required under subdivision 2, the chief administrative law judge shall publish a notice of intent for sanitary district annexation in the State Register and mail or e-mail information of the publication to each property owner in the affected territory at the owner's address as given by the county auditor. The information must state the date that the notice will appear in the State Register and give the Web site location for the State Register. The notice must: new text end

new text begin (1) describe the petition for sanitary district annexation; new text end

new text begin (2) describe the territory affected by the petition; new text end

new text begin (3) allow 30 days for submission of written comments on the petition; new text end

new text begin (4) state that a person who objects to the petition may submit a written request for hearing to the chief administrative law judge within 30 days of the publication of the notice in the State Register; and new text end

new text begin (5) state that if a timely request for hearing is not received, the chief administrative law judge may make a decision on the petition. new text end

new text begin (b) If 50 or more individual timely requests for hearing are received, the chief administrative law judge must hold a hearing on the petition according to the contested case provisions of chapter 14. The sanitary district or annexation area proposers are responsible for paying all costs involved in publicizing and holding a hearing on the petition. new text end

new text begin Subd. 5. new text end

new text begin Hearing time, place. new text end

new text begin If a hearing is required under subdivision 4, the chief administrative law judge shall designate a time and place for a hearing according to section 442A.13. new text end

new text begin Subd. 6. new text end

new text begin Relevant factors. new text end

new text begin (a) In arriving at a decision, the chief administrative law judge shall consider the following factors: new text end

new text begin (1) administrative feasibility under subdivision 1, paragraph (b); new text end

new text begin (2) public health, safety, and welfare impacts; new text end

new text begin (3) alternatives for managing the public health impacts; new text end

new text begin (4) equities of the petition proposal; new text end

new text begin (5) contours of the petition proposal; and new text end

new text begin (6) public notification of and interaction on the petition proposal. new text end

new text begin (b) Based upon these factors, the chief administrative law judge may order the annexation to the sanitary district on finding that: new text end

new text begin (1) the sanitary district is knowledgeable and experienced in delivering sanitary sewer services to ratepayers and has provided quality service in a fair and cost-effective manner; new text end

new text begin (2) the proposed annexation provides a long-term, equitable solution to pollution problems affecting public health, safety, and welfare; new text end

new text begin (3) property owners within the existing sanitary district and proposed annexation area were provided notice of the proposed district and opportunity to comment on the petition proposal; and new text end

new text begin (4) the petition complied with the requirements of all applicable statutes and rules pertaining to sanitary district annexation. new text end

new text begin (c) The chief administrative law judge may alter the boundaries of the proposed annexation area by increasing or decreasing the area to be included or may exclude property that may be better served by another unit of government. The chief administrative law judge may also alter the boundaries of the proposed annexation area so as to follow visible, clearly recognizable physical features for municipal boundaries. new text end

new text begin (d) The chief administrative law judge may deny sanitary district annexation if the area, or a part thereof, would be better served by an alternative method. new text end

new text begin (e) In all cases, the chief administrative law judge shall set forth the factors that are the basis for the decision. new text end

new text begin Subd. 7. new text end

new text begin Findings; order. new text end

new text begin (a) After the public notice period or the public hearing, if required under subdivision 4, and based on the petition, any public comments received, and, if a hearing was held, the hearing record, the chief administrative law judge shall make findings of fact and conclusions determining whether the conditions requisite for the sanitary district annexation exist in the territory described in the petition. If the chief administrative law judge finds that conditions exist, the judge may make an order for sanitary district annexation for the territory described in the petition. new text end

new text begin (b) All taxable property within the annexed area shall be subject to taxation for any existing bonded indebtedness or other indebtedness of the district for the cost of acquisition, construction, or improvement of any disposal system or other works or facilities beneficial to the annexed area to such extent as the chief administrative law judge may determine to be just and equitable, to be specified in the order for annexation. The proper officers shall levy further taxes on such property accordingly. new text end

new text begin Subd. 8. new text end

new text begin Denial of petition. new text end

new text begin If the chief administrative law judge, after conclusion of the public notice period or holding a hearing, if required, determines that the sanitary district annexation in the territory described in the petition is not warranted, the judge shall make an order denying the petition. The chief administrative law judge shall give notice of the denial by mail or e-mail to each signer of the petition. No petition for a sanitary district annexation consisting of the same territory shall be entertained within a year after the date of an order under this subdivision. Nothing in this subdivision precludes action on a petition for a sanitary district annexation embracing part of the territory with or without other territory. new text end

new text begin Subd. 9. new text end

new text begin Notice of order for sanitary district annexation. new text end

new text begin The chief administrative law judge shall publish in the State Register a notice of the final order for sanitary district annexation, referring to the date of the order and describing the territory of the annexation area, and shall mail or e-mail information of the publication to each property owner in the affected territory at the owner's address as given by the county auditor. The information must state the date that the notice will appear in the State Register and give the Web site location for the State Register. The notice must: new text end

new text begin (1) describe the petition for annexation to the district; new text end

new text begin (2) describe the territory affected by the petition; and new text end

new text begin (3) state that a certified copy of the order shall be delivered to the secretary of state for filing ten days after public notice of the order in the State Register. new text end

new text begin Subd. 10. new text end

new text begin Filing. new text end

new text begin Ten days after public notice of the order in the State Register, the chief administrative law judge shall deliver a certified copy of the order to the secretary of state for filing. Thereupon, the sanitary district annexation is deemed complete, and it shall be conclusively presumed that all requirements of law relating thereto have been complied with. The chief administrative law judge shall also transmit a certified copy of the order for filing to the county auditor of each county and the clerk or recorder of each municipality and organized town wherein any part of the territory of the district, including the newly annexed area, is situated and to the secretary of the district board. new text end

Sec. 8.

new text begin [442A.06] SANITARY DISTRICT DETACHMENT. new text end

new text begin Subdivision 1. new text end

new text begin Detachment. new text end

new text begin (a) A sanitary district detachment may occur under this chapter for any area within an existing district upon a petition to the chief administrative law judge stating the grounds therefor as provided in this section. new text end

new text begin (b) The proposed detachment must not have any negative environmental impact on the proposed detachment area. new text end

new text begin (c) If the chief administrative law judge and the Minnesota Pollution Control Agency disagree on the need for a sanitary district detachment, they must determine whether not allowing the sanitary district detachment will have a detrimental effect on the environment. If it is determined that the sanitary district detachment will cause environmental harm, the sanitary district detachment is not allowed unless the detached area is immediately connected to an existing wastewater treatment system. new text end

new text begin Subd. 2. new text end

new text begin Proceeding for detachment. new text end

new text begin (a) A proceeding for sanitary district detachment may be initiated by a petition to the chief administrative law judge containing the following: new text end

new text begin (1) a request for proposed detachment from a sanitary district; new text end

new text begin (2) a statement that the requisite conditions for inclusion in a district no longer exist in the proposed detachment area; new text end

new text begin (3) a legal description of the territory of the proposed detachment, including justification for inclusion or exclusion for all parcels; new text end

new text begin (4) addresses of every property owner within the sanitary district and proposed detachment area boundaries as provided by the county auditor, with certification from the county auditor; two sets of address labels for said owners; and a list of e-mail addresses for said owners, if available; new text end

new text begin (5) a statement of the territorial units represented by and qualifications of the respective signers; and new text end

new text begin (6) the post office address of each signer, given under the signer's signature. new text end

new text begin A petition may consist of separate writings of like effect, each signed by one or more qualified persons, and all such writings, when filed, shall be considered together as a single petition. new text end

new text begin (b) Petitioners must conduct and pay for a public meeting to inform citizens of the proposed detachment from a sanitary district. At the meeting, information must be provided, including a description of the existing district's territory and a description of the territory of the proposed detachment area, including justification for inclusion or exclusion for all parcels for the detachment area. Notice of the meeting must be published for two successive weeks in a qualified newspaper, as defined under chapter 331A, published within the territories of the existing sanitary district and proposed detachment area or, if there is no qualified newspaper published within those territories, in a qualified newspaper of general circulation in the territories, and must be posted for two weeks in each territorial unit of the existing sanitary district and proposed detachment area and on the Web site of the existing sanitary district, if one exists. Notice of the meeting must be mailed or e-mailed at least three weeks prior to the meeting to all property tax billing addresses for all parcels included in the sanitary district. The following must be submitted to the chief administrative law judge with the petition: new text end

new text begin (1) a record of the meeting, including copies of all information provided at the meeting; new text end

new text begin (2) a copy of the mailing list provided by the county auditor and used to notify property owners of the meeting; new text end

new text begin (3) a copy of the e-mail list used to notify property owners of the meeting; new text end

new text begin (4) the printer's affidavit of publication of public meeting notice; new text end

new text begin (5) an affidavit of posting the public meeting notice with information on dates and locations of posting; and new text end

new text begin (6) minutes or other record of the public meeting documenting that the following topics were discussed: printer's affidavit of publication of each resolution, with copy of resolution from newspaper attached; and affidavit of resolution posting on town or existing sanitary district Web site. new text end

new text begin (c) Every petition must be signed as follows: new text end

new text begin (1) by an authorized officer of the existing sanitary district pursuant to a resolution of the board; new text end

new text begin (2) for each municipality wherein there is a territorial unit of the proposed detachment area, by an authorized officer pursuant to a resolution of the municipal governing body; new text end

new text begin (3) for each organized town wherein there is a territorial unit of the proposed detachment area, by an authorized officer pursuant to a resolution of the town board; and new text end

new text begin (4) for each county wherein there is a territorial unit of the proposed detachment area consisting of an unorganized area, by an authorized officer pursuant to a resolution of the county board or by at least 20 percent of the voters residing and owning land within the unit. new text end

new text begin (d) Each resolution must be published in the official newspaper of the governing body adopting it and becomes effective 40 days after publication, unless within said period there shall be filed with the governing body a petition signed by qualified electors of a territorial unit of the proposed detachment area, equal in number to five percent of the number of electors voting at the last preceding election of the governing body, requesting a referendum on the resolution, in which case the resolution may not become effective until approved by a majority of the qualified electors voting at a regular election or special election that the governing body may call. The notice of an election and the ballot to be used must contain the text of the resolution followed by the question: "Shall the above resolution be approved?" new text end

new text begin (e) If any signer is alleged to be a landowner in a territorial unit, a statement as to the signer's landowner status as shown by the county auditor's tax assessment records, certified by the auditor, shall be attached to or endorsed upon the petition. new text end

new text begin (f) At any time before publication of the public notice required in subdivision 4, additional signatures may be added to the petition or amendments of the petition may be made to correct or remedy any error or defect in signature or otherwise except a material error or defect in the description of the territory of the proposed detachment area. If the qualifications of any signer of a petition are challenged, the chief administrative law judge shall determine the challenge forthwith on the allegations of the petition, the county auditor's certificate of land ownership, and such other evidence as may be received. new text end

new text begin Subd. 3. new text end

new text begin Joint petition. new text end

new text begin Different areas may be detached from a district in a single proceeding upon a joint petition therefor and upon compliance with the provisions of subdivisions 1 and 2 with respect to the area affected so far as applicable. new text end

new text begin Subd. 4. new text end

new text begin Notice of intent for sanitary district detachment. new text end

new text begin (a) Upon receipt of a petition and record of public meeting required under subdivision 2, the chief administrative law judge shall publish a notice of intent for sanitary district detachment in the State Register and mail or e-mail information of the publication to each property owner in the affected territory at the owner's address as given by the county auditor. The information must state the date that the notice will appear in the State Register and give the Web site location for the State Register. The notice must: new text end

new text begin (1) describe the petition for sanitary district detachment; new text end

new text begin (2) describe the territory affected by the petition; new text end

new text begin (3) allow 30 days for submission of written comments on the petition; new text end

new text begin (4) state that a person who objects to the petition may submit a written request for hearing to the chief administrative law judge within 30 days of the publication of the notice in the State Register; and new text end

new text begin (5) state that if a timely request for hearing is not received, the chief administrative law judge may make a decision on the petition. new text end

new text begin (b) If 50 or more individual timely requests for hearing are received, the chief administrative law judge must hold a hearing on the petition according to the contested case provisions of chapter 14. The sanitary district or detachment area proposers are responsible for paying all costs involved in publicizing and holding a hearing on the petition. new text end

new text begin Subd. 5. new text end

new text begin Hearing time, place. new text end

new text begin If a hearing is required under subdivision 4, the chief administrative law judge shall designate a time and place for a hearing according to section 442A.13. new text end

new text begin Subd. 6. new text end

new text begin Relevant factors. new text end

new text begin (a) In arriving at a decision, the chief administrative law judge shall consider the following factors: new text end

new text begin (1) public health, safety, and welfare impacts for the proposed detachment area; new text end

new text begin (2) alternatives for managing the public health impacts for the proposed detachment area; new text end

new text begin (3) equities of the petition proposal; new text end

new text begin (4) contours of the petition proposal; and new text end

new text begin (5) public notification of and interaction on the petition proposal. new text end

new text begin (b) Based upon these factors, the chief administrative law judge may order the detachment from the sanitary district on finding that: new text end

new text begin (1) the proposed detachment area has adequate alternatives for managing public health impacts due to the detachment; new text end

new text begin (2) the proposed detachment area is not necessary for the district to provide a long-term, equitable solution to pollution problems affecting public health, safety, and welfare; new text end

new text begin (3) property owners within the existing sanitary district and proposed detachment area were provided notice of the proposed detachment and opportunity to comment on the petition proposal; and new text end

new text begin (4) the petition complied with the requirements of all applicable statutes and rules pertaining to sanitary district detachment. new text end

new text begin (c) The chief administrative law judge may alter the boundaries of the proposed detachment area by increasing or decreasing the area to be included or may exclude property that may be better served by another unit of government. The chief administrative law judge may also alter the boundaries of the proposed detachment area so as to follow visible, clearly recognizable physical features for municipal boundaries. new text end

new text begin (d) The chief administrative law judge may deny sanitary district detachment if the area, or a part thereof, would be better served by an alternative method. new text end

new text begin (e) In all cases, the chief administrative law judge shall set forth the factors that are the basis for the decision. new text end

new text begin Subd. 7. new text end

new text begin Findings; order. new text end

new text begin (a) After the public notice period or the public hearing, if required under subdivision 4, and based on the petition, any public comments received, and, if a hearing was held, the hearing record, the chief administrative law judge shall make findings of fact and conclusions determining whether the conditions requisite for the sanitary district detachment exist in the territory described in the petition. If the chief administrative law judge finds that conditions exist, the judge may make an order for sanitary district detachment for the territory described in the petition. new text end

new text begin (b) All taxable property within the detached area shall remain subject to taxation for any existing bonded indebtedness of the district to such extent as it would have been subject thereto if not detached and shall also remain subject to taxation for any other existing indebtedness of the district incurred for any purpose beneficial to such area to such extent as the chief administrative law judge may determine to be just and equitable, to be specified in the order for detachment. The proper officers shall levy further taxes on such property accordingly. new text end

new text begin Subd. 8. new text end

new text begin Denial of petition. new text end

new text begin If the chief administrative law judge, after conclusion of the public notice period or holding a hearing, if required, determines that the sanitary district detachment in the territory described in the petition is not warranted, the judge shall make an order denying the petition. The chief administrative law judge shall give notice of the denial by mail or e-mail to each signer of the petition. No petition for a detachment from a district consisting of the same territory shall be entertained within a year after the date of an order under this subdivision. Nothing in this subdivision precludes action on a petition for a detachment from a district embracing part of the territory with or without other territory. new text end

new text begin Subd. 9. new text end

new text begin Notice of order for sanitary district detachment. new text end

new text begin The chief administrative law judge shall publish in the State Register a notice of the final order for sanitary district detachment, referring to the date of the order and describing the territory of the detached area and shall mail or e-mail information of the publication to each property owner in the affected territory at the owner's address as given by the county auditor. The information must state the date that the notice will appear in the State Register and give the Web site location for the State Register. The notice must: new text end

new text begin (1) describe the petition for detachment from the district; new text end

new text begin (2) describe the territory affected by the petition; and new text end

new text begin (3) state that a certified copy of the order shall be delivered to the secretary of state for filing ten days after public notice of the order in the State Register. new text end

new text begin Subd. 10. new text end

new text begin Filing. new text end

new text begin Ten days after public notice of the order in the State Register, the chief administrative law judge shall deliver a certified copy of the order to the secretary of state for filing. Thereupon, the sanitary district detachment is deemed complete, and it shall be conclusively presumed that all requirements of law relating thereto have been complied with. The chief administrative law judge shall also transmit a certified copy of the order for filing to the county auditor of each county and the clerk or recorder of each municipality and organized town wherein any part of the territory of the district, including the newly detached area, is situated and to the secretary of the district board. new text end

Sec. 9.

new text begin [442A.07] SANITARY DISTRICT DISSOLUTION. new text end

new text begin Subdivision 1. new text end

new text begin Dissolution. new text end

new text begin (a) An existing sanitary district may be dissolved under this chapter upon a petition to the chief administrative law judge stating the grounds therefor as provided in this section. new text end

new text begin (b) The proposed dissolution must not have any negative environmental impact on the existing sanitary district area. new text end

new text begin (c) If the chief administrative law judge and the Minnesota Pollution Control Agency disagree on the need to dissolve a sanitary district, they must determine whether not dissolving the sanitary district will have a detrimental effect on the environment. If it is determined that the sanitary district dissolution will cause environmental harm, the sanitary district dissolution is not allowed unless the existing sanitary district area is immediately connected to an existing wastewater treatment system. new text end

new text begin Subd. 2. new text end

new text begin Proceeding for dissolution. new text end

new text begin (a) A proceeding for sanitary district dissolution may be initiated by a petition to the chief administrative law judge containing the following: new text end

new text begin (1) a request for proposed sanitary district dissolution; new text end

new text begin (2) a statement that the requisite conditions for a sanitary district no longer exist in the district area; new text end

new text begin (3) a proposal for distribution of the remaining funds of the district, if any, among the related governmental subdivisions; new text end

new text begin (4) a legal description of the territory of the proposed dissolution; new text end

new text begin (5) addresses of every property owner within the sanitary district boundaries as provided by the county auditor, with certification from the county auditor; two sets of address labels for said owners; and a list of e-mail addresses for said owners, if available; new text end

new text begin (6) a statement of the territorial units represented by and the qualifications of the respective signers; and new text end

new text begin (7) the post office address of each signer, given under the signer's signature. new text end

new text begin A petition may consist of separate writings of like effect, each signed by one or more qualified persons, and all such writings, when filed, shall be considered together as a single petition. new text end

new text begin (b) Petitioners must conduct and pay for a public meeting to inform citizens of the proposed dissolution of a sanitary district. At the meeting, information must be provided, including a description of the existing district's territory. Notice of the meeting must be published for two successive weeks in a qualified newspaper, as defined under chapter 331A, published within the territory of the sanitary district or, if there is no qualified newspaper published within that territory, in a qualified newspaper of general circulation in the territory and must be posted for two weeks in each territorial unit of the sanitary district and on the Web site of the existing sanitary district, if one exists. Notice of the meeting must be mailed or e-mailed at least three weeks prior to the meeting to all property tax billing addresses for all parcels included in the sanitary district. The following must be submitted to the chief administrative law judge with the petition: new text end

new text begin (1) a record of the meeting, including copies of all information provided at the meeting; new text end

new text begin (2) a copy of the mailing list provided by the county auditor and used to notify property owners of the meeting; new text end

new text begin (3) a copy of the e-mail list used to notify property owners of the meeting; new text end

new text begin (4) the printer's affidavit of publication of public meeting notice; new text end

new text begin (5) an affidavit of posting the public meeting notice with information on dates and locations of posting; and new text end

new text begin (6) minutes or other record of the public meeting documenting that the following topics were discussed: printer's affidavit of publication of each resolution, with copy of resolution from newspaper attached; and affidavit of resolution posting on town or existing sanitary district Web site. new text end

new text begin (c) Every petition must be signed as follows: new text end

new text begin (1) by an authorized officer of the existing sanitary district pursuant to a resolution of the board; new text end

new text begin (2) for each municipality wherein there is a territorial unit of the existing sanitary district, by an authorized officer pursuant to a resolution of the municipal governing body; new text end

new text begin (3) for each organized town wherein there is a territorial unit of the existing sanitary district, by an authorized officer pursuant to a resolution of the town board; and new text end

new text begin (4) for each county wherein there is a territorial unit of the existing sanitary district consisting of an unorganized area, by an authorized officer pursuant to a resolution of the county board or by at least 20 percent of the voters residing and owning land within the unit. new text end

new text begin (d) Each resolution must be published in the official newspaper of the governing body adopting it and becomes effective 40 days after publication, unless within said period there shall be filed with the governing body a petition signed by qualified electors of a territorial unit of the district, equal in number to five percent of the number of electors voting at the last preceding election of the governing body, requesting a referendum on the resolution, in which case the resolution may not become effective until approved by a majority of the qualified electors voting at a regular election or special election that the governing body may call. The notice of an election and the ballot to be used must contain the text of the resolution followed by the question: "Shall the above resolution be approved?" new text end

new text begin (e) If any signer is alleged to be a landowner in a territorial unit, a statement as to the signer's landowner status as shown by the county auditor's tax assessment records, certified by the auditor, shall be attached to or endorsed upon the petition. new text end

new text begin (f) At any time before publication of the public notice required in subdivision 3, additional signatures may be added to the petition or amendments of the petition may be made to correct or remedy any error or defect in signature or otherwise except a material error or defect in the description of the territory of the proposed dissolution area. If the qualifications of any signer of a petition are challenged, the chief administrative law judge shall determine the challenge forthwith on the allegations of the petition, the county auditor's certificate of land ownership, and such other evidence as may be received. new text end

new text begin Subd. 3. new text end

new text begin Notice of intent for sanitary district dissolution. new text end

new text begin (a) Upon receipt of a petition and record of the public meeting required under subdivision 2, the chief administrative law judge shall publish a notice of intent of sanitary district dissolution in the State Register and mail or e-mail information of the publication to each property owner in the affected territory at the owner's address as given by the county auditor. The information must state the date that the notice will appear in the State Register and give the Web site location for the State Register. The notice must: new text end

new text begin (1) describe the petition for sanitary district dissolution; new text end

new text begin (2) describe the territory affected by the petition; new text end

new text begin (3) allow 30 days for submission of written comments on the petition; new text end

new text begin (4) state that a person who objects to the petition may submit a written request for hearing to the chief administrative law judge within 30 days of the publication of the notice in the State Register; and new text end

new text begin (5) state that if a timely request for hearing is not received, the chief administrative law judge may make a decision on the petition. new text end

new text begin (b) If 50 or more individual timely requests for hearing are received, the chief administrative law judge must hold a hearing on the petition according to the contested case provisions of chapter 14. The sanitary district dissolution proposers are responsible for paying all costs involved in publicizing and holding a hearing on the petition. new text end

new text begin Subd. 4. new text end

new text begin Hearing time, place. new text end

new text begin If a hearing is required under subdivision 3, the chief administrative law judge shall designate a time and place for a hearing according to section 442A.13. new text end

new text begin Subd. 5. new text end

new text begin Relevant factors. new text end

new text begin (a) In arriving at a decision, the chief administrative law judge shall consider the following factors: new text end

new text begin (1) public health, safety, and welfare impacts for the proposed dissolution; new text end

new text begin (2) alternatives for managing the public health impacts for the proposed dissolution; new text end

new text begin (3) equities of the petition proposal; new text end

new text begin (4) contours of the petition proposal; and new text end

new text begin (5) public notification of and interaction on the petition proposal. new text end

new text begin (b) Based upon these factors, the chief administrative law judge may order the dissolution of the sanitary district on finding that: new text end

new text begin (1) the proposed dissolution area has adequate alternatives for managing public health impacts due to the dissolution; new text end

new text begin (2) the sanitary district is not necessary to provide a long-term, equitable solution to pollution problems affecting public health, safety, and welfare; new text end

new text begin (3) property owners within the sanitary district were provided notice of the proposed dissolution and opportunity to comment on the petition proposal; and new text end

new text begin (4) the petition complied with the requirements of all applicable statutes and rules pertaining to sanitary district dissolution. new text end

new text begin (c) The chief administrative law judge may alter the boundaries of the proposed dissolution area by increasing or decreasing the area to be included or may exclude property that may be better served by another unit of government. The chief administrative law judge may also alter the boundaries of the proposed dissolution area so as to follow visible, clearly recognizable physical features for municipal boundaries. new text end

new text begin (d) The chief administrative law judge may deny sanitary district dissolution if the area, or a part thereof, would be better served by an alternative method. new text end

new text begin (e) In all cases, the chief administrative law judge shall set forth the factors that are the basis for the decision. new text end

new text begin Subd. 6. new text end

new text begin Findings; order. new text end

new text begin (a) After the public notice period or the public hearing, if required under subdivision 3, and based on the petition, any public comments received, and, if a hearing was held, the hearing record, the chief administrative law judge shall make findings of fact and conclusions determining whether the conditions requisite for the sanitary district dissolution exist in the territory described in the petition. If the chief administrative law judge finds that conditions exist, the judge may make an order for sanitary district dissolution for the territory described in the petition. new text end

new text begin (b) If the chief administrative law judge determines that the conditions requisite for the creation of the district no longer exist therein, that all indebtedness of the district has been paid, and that all property of the district except funds has been disposed of, the judge may make an order dissolving the district and directing the distribution of its remaining funds, if any, among the related governmental subdivisions on such basis as the chief administrative law judge determines to be just and equitable, to be specified in the order. new text end

new text begin Subd. 7. new text end

new text begin Denial of petition. new text end

new text begin If the chief administrative law judge, after conclusion of the public notice period or holding a hearing, if required, determines that the sanitary district dissolution in the territory described in the petition is not warranted, the judge shall make an order denying the petition. The chief administrative law judge shall give notice of the denial by mail or e-mail to each signer of the petition. No petition for the dissolution of a district consisting of the same territory shall be entertained within a year after the date of an order under this subdivision. new text end

new text begin Subd. 8. new text end

new text begin Notice of order for sanitary district dissolution. new text end

new text begin The chief administrative law judge shall publish in the State Register a notice of the final order for sanitary district dissolution, referring to the date of the order and describing the territory of the dissolved district and shall mail or e-mail information of the publication to each property owner in the affected territory at the owner's address as given by the county auditor. The information must state the date that the notice will appear in the State Register and give the Web site location of the State Register. The notice must: new text end

new text begin (1) describe the petition for dissolution of the district; new text end

new text begin (2) describe the territory affected by the petition; and new text end

new text begin (3) state that a certified copy of the order shall be delivered to the secretary of state for filing ten days after public notice of the order in the State Register. new text end

new text begin Subd. 9. new text end

new text begin Filing. new text end

new text begin (a) Ten days after public notice of the order in the State Register, the chief administrative law judge shall deliver a certified copy of the order to the secretary of state for filing. Thereupon, the sanitary district dissolution is deemed complete, and it shall be conclusively presumed that all requirements of law relating thereto have been complied with. The chief administrative law judge shall also transmit a certified copy of the order for filing to the county auditor of each county and the clerk or recorder of each municipality and organized town wherein any part of the territory of the dissolved district is situated and to the secretary of the district board. new text end

new text begin (b) The chief administrative law judge shall also transmit a certified copy of the order to the treasurer of the district, who must thereupon distribute the remaining funds of the district as directed by the order and who is responsible for the funds until so distributed. new text end

Sec. 10.

new text begin [442A.08] JOINT PUBLIC INFORMATIONAL MEETING. new text end

new text begin There must be a joint public informational meeting of the local governments of any proposed sanitary district creation, annexation, detachment, or dissolution. The joint public informational meeting must be held after the final mediation meeting or the final meeting held according to section 442A.02, subdivision 8, if any, and before the hearing on the matter is held. If no mediation meetings are held, the joint public informational meeting must be held after the initiating documents have been filed and before the hearing on the matter. The time, date, and place of the public informational meeting must be determined jointly by the local governments in the proposed creation, annexation, detachment, or dissolution areas and by the sanitary district, if one exists. The chair of the sanitary district, if one exists, and the responsible official for one of the local governments represented at the meeting must serve as the co-chairs for the informational meeting. Notice of the time, date, place, and purpose of the informational meeting must be posted by the sanitary district, if one exists, and local governments in designated places for posting notices. The sanitary district, if one exists, and represented local governments must also publish, at their own expense, notice in their respective official newspapers. If the same official newspaper is used by multiple local government representatives or the sanitary district, a joint notice may be published and the costs evenly divided. All notice required by this section must be provided at least ten days before the date for the public informational meeting. At the public informational meeting, all persons appearing must have an opportunity to be heard, but the co-chairs may, by mutual agreement, establish the amount of time allowed for each speaker. The sanitary district board, the local government representatives, and any resident or affected property owner may be represented by counsel and may place into the record of the informational meeting documents, expert opinions, or other materials supporting their positions on issues raised by the proposed proceeding. The secretary of the sanitary district, if one exists, or a person appointed by the chair must record minutes of the proceedings of the informational meeting and must make an audio recording of the informational meeting. The sanitary district, if one exists, or a person appointed by the chair must provide the chief administrative law judge and the represented local governments with a copy of the printed minutes and must provide the chief administrative law judge and the represented local governments with a copy of the audio recording. The record of the informational meeting for a proceeding under section 442A.04, 442A.05, 442A.06, or 442A.07 is admissible in any proceeding under this chapter and shall be taken into consideration by the chief administrative law judge or the chief administrative law judge's designee. new text end

Sec. 11.

new text begin [442A.09] ANNEXATION BY ORDER OF POLLUTION CONTROL AGENCY. new text end

new text begin Subdivision 1. new text end

new text begin Annexation by ordinance alternative. new text end

new text begin If a determination or order by the Minnesota Pollution Control Agency under section 115.49 or other similar statute is made that cooperation by contract is necessary and feasible between a sanitary district and an unincorporated area located outside the existing corporate limits of the sanitary district, the sanitary district required to provide or extend through a contract a governmental service to an unincorporated area, during the statutory 90-day period provided in section 115.49 to formulate a contract, may in the alternative to formulating a service contract to provide or extend the service, declare the unincorporated area described in the Minnesota Pollution Control Agency's determination letter or order annexed to the sanitary district by adopting an ordinance and submitting it to the chief administrative law judge. new text end

new text begin Subd. 2. new text end

new text begin Chief administrative law judge's role. new text end

new text begin The chief administrative law judge may review and comment on the ordinance but shall approve the ordinance within 30 days of receipt. The ordinance is final and the annexation is effective on the date the chief administrative law judge approves the ordinance. new text end

Sec. 12.

new text begin [442A.10] PETITIONERS TO PAY EXPENSES. new text end

new text begin Expenses of the preparation and submission of petitions in the proceedings under sections 442A.04 to 442A.09 shall be paid by the petitioners. Notwithstanding section 16A.1283, the Office of Administrative Hearings may adopt rules according to section 14.386 to establish fees necessary to support the preparation and submission of petitions in proceedings under sections 442A.04 to 442A.09. The fees collected by the Office of Administrative Hearings shall be deposited in the environmental fund. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

new text begin [442A.11] TIME LIMITS FOR ORDERS; APPEALS. new text end

new text begin Subdivision 1. new text end

new text begin Orders; time limit. new text end

new text begin All orders in proceedings under this chapter shall be issued within one year from the date of the first hearing thereon, provided that the time may be extended for a fixed additional period upon consent of all parties of record. Failure to so order shall be deemed to be an order denying the matter. An appeal may be taken from such failure to so order in the same manner as an appeal from an order as provided in subdivision 2. new text end

new text begin Subd. 2. new text end

new text begin Grounds for appeal. new text end

new text begin (a) Any person aggrieved by an order issued under this chapter may appeal to the district court upon the following grounds: new text end

new text begin (1) the order was issued without jurisdiction to act; new text end

new text begin (2) the order exceeded the jurisdiction of the presiding administrative law judge; new text end

new text begin (3) the order was arbitrary, fraudulent, capricious, or oppressive or in unreasonable disregard of the best interests of the territory affected; or new text end

new text begin (4) the order was based upon an erroneous theory of law. new text end

new text begin (b) The appeal must be taken in the district court in the county in which the majority of the area affected is located. The appeal does not stay the effect of the order. All notices and other documents must be served on both the chief administrative law judge and the attorney general's assistant assigned to the chief administrative law judge for purposes of this chapter. new text end

new text begin (c) If the court determines that the action involved is unlawful or unreasonable or is not warranted by the evidence in case an issue of fact is involved, the court may vacate or suspend the action involved, in whole or in part, as the case requires. The matter shall then be remanded for further action in conformity with the decision of the court. new text end

new text begin (d) To render a review of an order effectual, the aggrieved person shall file with the court administrator of the district court of the county in which the majority of the area is located, within 30 days of the order, an application for review together with the grounds upon which the review is sought. new text end

new text begin (e) An appeal lies from the district court as in other civil cases. new text end

Sec. 14.

new text begin [442A.12] CHIEF ADMINISTRATIVE LAW JUDGE MAY APPEAL FROM DISTRICT COURT. new text end

new text begin An appeal may be taken under the Rules of Civil Appellate Procedure by the chief administrative law judge from a final order or judgment made or rendered by the district court when the chief administrative law judge determines that the final order or judgment adversely affects the public interest. new text end

Sec. 15.

new text begin [442A.13] UNIFORM PROCEDURES. new text end

new text begin Subdivision 1. new text end

new text begin Hearings. new text end

new text begin (a) Proceedings initiated by the submission of an initiating document or by the chief administrative law judge shall come on for hearing within 30 to 60 days from receipt of the document by the chief administrative law judge or from the date of the chief administrative law judge's action and the person conducting the hearing must submit an order no later than one year from the date of the first hearing. new text end

new text begin (b) The place of the hearing shall be in the county where a majority of the affected territory is situated, and shall be established for the convenience of the parties. new text end

new text begin (c) The chief administrative law judge shall mail notice of the hearing to the following parties: the sanitary district; any township or municipality presently governing the affected territory; any township or municipality abutting the affected territory; the county where the affected territory is situated; and each planning agency that has jurisdiction over the affected area. new text end

new text begin (d) The chief administrative law judge shall see that notice of the hearing is published for two successive weeks in a legal newspaper of general circulation in the affected area. new text end

new text begin (e) When the chief administrative law judge exercises authority to change the boundaries of the affected area so as to increase the quantity of land, the hearing shall be recessed and reconvened upon two weeks' published notice in a legal newspaper of general circulation in the affected area. new text end

new text begin Subd. 2. new text end

new text begin Transmittal of order. new text end

new text begin The chief administrative law judge shall see that copies of the order are mailed to all parties entitled to mailed notice of hearing under subdivision 1, individual property owners if initiated in that manner, and any other party of record. new text end

Sec. 16.

new text begin [442A.14] DISTRICT BOARD OF MANAGERS. new text end

new text begin Subdivision 1. new text end

new text begin Composition. new text end

new text begin The governing body of each district shall be a board of managers of five members, who shall be voters residing in the district and who may but need not be officers, members of governing bodies, or employees of the related governmental subdivisions, except that when there are more than five territorial units in a district, there must be one board member for each unit. new text end

new text begin Subd. 2. new text end

new text begin Terms. new text end

new text begin The terms of the first board members elected after creation of a district shall be so arranged and determined by the electing body as to expire on the first business day in January as follows: new text end

new text begin (1) the terms of two members in the second calendar year after the year in which they were elected; new text end

new text begin (2) the terms of two other members in the third calendar year after the year in which they were elected; and new text end

new text begin (3) the term of the remaining member in the fourth calendar year after the year in which the member was elected. In case a board has more than five members, the additional members shall be assigned to the groups under clauses (1) to (3) to equalize the groups as far as practicable. Thereafter, board members shall be elected successively for regular terms beginning upon expiration of the preceding terms and expiring on the first business day in January of the third calendar year thereafter. Each board member serves until a successor is elected and has qualified. new text end

new text begin Subd. 3. new text end

new text begin Election of board. new text end

new text begin In a district having only one territorial unit, all the members of the board shall be elected by the related governing body. In a district having more than one territorial unit, the members of the board shall be elected by the members of the related governing bodies in joint session except as otherwise provided. The electing bodies concerned shall meet and elect the first board members of a new district as soon as practicable after creation of the district and shall meet and elect board members for succeeding regular terms as soon as practicable after November 1 next preceding the beginning of the terms to be filled, respectively. new text end

new text begin Subd. 4. new text end

new text begin Central related governing body. new text end

new text begin Upon the creation of a district having more than one territorial unit, the chief administrative law judge, on the basis of convenience for joint meeting purposes, shall designate one of the related governing bodies as the central related governing body in the order creating the district or in a subsequent special order, of which the chief administrative law judge shall notify the clerks or recorders of all the related governing bodies. Upon receipt of the notification, the clerk or recorder of the central related governing body shall immediately transmit the notification to the presiding officer of the body. The officer shall thereupon call a joint meeting of the members of all the related governing bodies to elect board members, to be held at such time as the officer shall fix at the regular meeting place of the officer's governing body or at such other place in the district as the officer shall determine. The clerk or recorder of the body must give at least ten days' notice of the meeting by mail to the clerks or recorders of all the other related governing bodies, who shall immediately transmit the notice to all the members of the related governing bodies, respectively. Subsequent joint meetings to elect board members for regular terms must be called and held in like manner. The presiding officer and the clerk or recorder of the central related governing body shall act respectively as chair and secretary of the joint electing body at any meeting thereof, but in case of the absence or disability of either of them, the body may elect a temporary substitute. A majority of the members of each related governing body is required for a quorum at any meeting of the joint electing body. new text end

new text begin Subd. 5. new text end

new text begin Nominations. new text end

new text begin Nominations for board members may be made by petitions, each signed by ten or more voters residing and owning land in the district, filed with the clerk, recorder, or secretary of the electing body before the election meeting. No person shall sign more than one petition. The electing body shall give due consideration to all nominations but is not limited thereto. new text end

new text begin Subd. 6. new text end

new text begin Election; single governing body. new text end

new text begin In the case of an electing body consisting of a single related governing body, a majority vote of all members is required for an election. In the case of a joint electing body, a majority vote of members present is required for an election. In case of lack of a quorum or failure to elect, a meeting of an electing body may be adjourned to a stated time and place without further notice. new text end

new text begin Subd. 7. new text end

new text begin Election; multiple governing bodies. new text end

new text begin In any district having more than one territorial unit, the related governing bodies, instead of meeting in joint session, may elect a board member by resolutions adopted by all of them separately, concurring in the election of the same person. A majority vote of all members of each related governing body is required for the adoption of any such resolution. The clerks or recorders of the other related governing bodies shall transmit certified copies of the resolutions to the clerk or recorder of the central related governing body. Upon receipt of concurring resolutions from all the related governing bodies, the presiding officer and clerk or recorder of the central related governing body shall certify the results and furnish certificates of election as provided for a joint meeting. new text end

new text begin Subd. 8. new text end

new text begin Vacancies. new text end

new text begin Any vacancy in the membership of a board must be filled for the unexpired term in like manner as provided for the regular election of board members. new text end

new text begin Subd. 9. new text end

new text begin Certification of election; temporary chair. new text end

new text begin The presiding and recording officers of the electing body shall certify the results of each election to the county auditor of each county wherein any part of the district is situated and to the clerk or recorder of each related governing body and shall make and transmit to each board member elected a certificate of the board member's election. Upon electing the first board members of a district, the presiding officer of the electing body shall designate a member to serve as temporary chair for purposes of initial organization of the board, and the recording officer of the body shall include written notice thereof to all the board members with their certificates of election. new text end

Sec. 17.

new text begin [442A.15] BOARD ORGANIZATION AND PROCEDURES. new text end

new text begin Subdivision 1. new text end

new text begin Initial, annual meetings. new text end

new text begin As soon as practicable after the election of the first board members of a district, the board shall meet at the call of the temporary chair to elect officers and take other appropriate action for organization and administration of the district. Each board shall hold a regular annual meeting at the call of the chair or otherwise as the board prescribes on or as soon as practicable after the first business day in January of each year and such other regular and special meetings as the board prescribes. new text end

new text begin Subd. 2. new text end

new text begin Officers. new text end

new text begin The officers of each district shall be a chair and a vice-chair, who shall be members of the board, and a secretary and a treasurer, who may but need not be members of the board. The board of a new district at its initial meeting or as soon thereafter as practicable shall elect the officers to serve until the first business day in January next following. Thereafter, the board shall elect the officers at each regular annual meeting for terms expiring on the first business day in January next following. Each officer serves until a successor is elected and has qualified. new text end

new text begin Subd. 3. new text end

new text begin Meeting place; offices. new text end

new text begin The board at its initial meeting or as soon thereafter as practicable shall provide for suitable places for board meetings and for offices of the district officers and may change the same thereafter as the board deems advisable. The meeting place and offices may be the same as those of any related governing body, with the approval of the body. The secretary of the board shall notify the secretary of state, the county auditor of each county wherein any part of the district is situated, and the clerk or recorder of each related governing body of the locations and post office addresses of the meeting place and offices and any changes therein. new text end

new text begin Subd. 4. new text end

new text begin Budget. new text end

new text begin At any time before the proceeds of the first tax levy in a district become available, the district board may prepare a budget comprising an estimate of the expenses of organizing and administering the district until the proceeds are available, with a proposal for apportionment of the estimated amount among the related governmental subdivisions, and may request the governing bodies thereof to advance funds according to the proposal. The governing bodies may authorize advancement of the requested amounts, or such part thereof as they respectively deem proper, from any funds available in their respective treasuries. The board shall include in its first tax levy after receipt of any such advancements a sufficient sum to cover the same and shall cause the same to be repaid, without interest, from the proceeds of taxes as soon as received. new text end

Sec. 18.

new text begin [442A.16] DISTRICT STATUS AND POWERS. new text end

new text begin Subdivision 1. new text end

new text begin Status. new text end

new text begin Every district shall be a public corporation and a governmental subdivision of the state and shall be deemed to be a municipality or municipal corporation for the purpose of obtaining federal or state grants or loans or otherwise complying with any provision of federal or state law or for any other purpose relating to the powers and purposes of the district for which such status is now or hereafter required by law. new text end

new text begin Subd. 2. new text end

new text begin Powers and purpose. new text end

new text begin Every district shall have the powers and purposes prescribed by this chapter and such others as may now or hereafter be prescribed by law. No express grant of power or enumeration of powers herein shall be deemed to limit the generality or scope of any grant of power. new text end

new text begin Subd. 3. new text end

new text begin Scope of powers and duties. new text end

new text begin Except as otherwise provided, a power or duty vested in or imposed upon a district or any of its officers, agents, or employees shall not be deemed exclusive and shall not supersede or abridge any power or duty vested in or imposed upon any other agency of the state or any governmental subdivision thereof, but shall be supplementary thereto. new text end

new text begin Subd. 4. new text end

new text begin Exercise of power. new text end

new text begin All the powers of a district shall be exercised by its board of managers except so far as approval of any action by popular vote or by any other authority may be expressly required by law. new text end

new text begin Subd. 5. new text end

new text begin Lawsuits; contracts. new text end

new text begin A district may sue and be sued and may enter into any contract necessary or proper for the exercise of its powers or the accomplishment of its purposes. new text end

new text begin Subd. 6. new text end

new text begin Property acquisition. new text end

new text begin A district may acquire by purchase, gift, or condemnation or may lease or rent any real or personal property within or without the district that may be necessary for the exercise of district powers or the accomplishment of district purposes, may hold the property for such purposes, and may lease, rent out, sell, or otherwise dispose of any property not needed for such purposes. new text end

new text begin Subd. 7. new text end

new text begin Acceptance of money or property. new text end

new text begin A district may accept gifts, grants, or loans of money or other property from the United States, the state, or any person, corporation, or other entity for district purposes; may enter into any agreement required in connection therewith; and may hold, use, and dispose of the money or property according to the terms of the gift, grant, loan, or agreement relating thereto. new text end

Sec. 19.

new text begin [442A.17] SPECIFIC PURPOSES AND POWERS. new text end

new text begin Subdivision 1. new text end

new text begin Pollution prevention. new text end

new text begin A district may construct, install, improve, maintain, and operate any system, works, or facilities within or without the district required to control and prevent pollution of any waters of the state within its territory. new text end

new text begin Subd. 2. new text end

new text begin Sewage disposal. new text end

new text begin A district may construct, install, improve, maintain, and operate any system, works, or facilities within or without the district required to provide for, regulate, and control the disposal of sewage, industrial waste, and other waste originating within its territory. The district may require any person upon whose premises there is any source of sewage, industrial waste, or other waste within the district to connect the premises with the disposal system, works, or facilities of the district whenever reasonable opportunity therefor is provided. new text end

new text begin Subd. 3. new text end

new text begin Garbage, refuse disposal. new text end

new text begin A district may construct, install, improve, maintain, and operate any system, works, or facilities within or without the district required to provide for, regulate, and control the disposal of garbage or refuse originating within the district. The district may require any person upon whose premises any garbage or refuse is produced or accumulated to dispose of the garbage or refuse through the system, works, or facilities of the district whenever reasonable opportunity therefor is provided. new text end

new text begin Subd. 4. new text end

new text begin Water supply. new text end

new text begin A district may procure supplies of water necessary for any purpose under subdivisions 1 to 3 and may construct, install, improve, maintain, and operate any system, works, or facilities required therefor within or without the district. new text end

new text begin Subd. 5. new text end

new text begin Roads. new text end

new text begin (a) To maintain the integrity of and facilitate access to district systems, works, or facilities, the district may maintain and repair a road by agreement with the entity that was responsible for the performance of maintenance and repair immediately prior to the agreement. Maintenance and repair includes but is not limited to providing lighting, snow removal, and grass mowing. new text end

new text begin (b) A district shall establish a taxing subdistrict of benefited property and shall levy special taxes, pursuant to section 442A.24, subdivision 2, for the purposes of paying the cost of improvement or maintenance of a road under paragraph (a). new text end

new text begin (c) For purposes of this subdivision, a district shall not be construed as a road authority under chapter 160. new text end

new text begin (d) The district and its officers and employees are exempt from liability for any tort claim for injury to person or property arising from travel on a road maintained by the district and related to the road's maintenance or condition. new text end

Sec. 20.

new text begin [442A.18] DISTRICT PROJECTS AND FACILITIES. new text end

new text begin Subdivision 1. new text end

new text begin Public property. new text end

new text begin For the purpose of constructing, improving, maintaining, or operating any system, works, or facilities designed or used for any purpose under section 442A.17, a district, its officers, agents, employees, and contractors may enter, occupy, excavate, and otherwise operate in, upon, under, through, or along any public highway, including a state trunk highway, or any street, park, or other public grounds so far as necessary for such work, with the approval of the governing body or other authority in charge of the public property affected and on such terms as may be agreed upon with the governing body or authority respecting interference with public use, restoration of previous conditions, compensation for damages, and other pertinent matters. If an agreement cannot be reached after reasonable opportunity therefor, the district may acquire the necessary rights, easements, or other interests in the public property by condemnation, subject to all applicable provisions of law as in case of taking private property, upon condition that the court shall determine that there is paramount public necessity for the acquisition. new text end

new text begin Subd. 2. new text end

new text begin Use of other systems. new text end

new text begin A district may, upon such terms as may be agreed upon with the respective governing bodies or authorities concerned, provide for connecting with or using; lease; or acquire and take over any system, works, or facilities for any purpose under section 442A.17 belonging to any other governmental subdivision or other public agency. new text end

new text begin Subd. 3. new text end

new text begin Use by other governmental bodies. new text end

new text begin A district may, upon such terms as may be agreed upon with the respective governing bodies or authorities concerned, authorize the use by any other governmental subdivision or other public agency of any system, works, or facilities of the district constructed for any purpose under section 442A.17 so far as the capacity thereof is sufficient beyond the needs of the district. A district may extend any such system, works, or facilities and permit the use thereof by persons outside the district, so far as the capacity thereof is sufficient beyond the needs of the district, upon such terms as the board may prescribe. new text end

new text begin Subd. 4. new text end

new text begin Joint projects. new text end

new text begin A district may be a party to a joint cooperative project, undertaking, or enterprise with one or more other governmental subdivisions or other public agencies for any purpose under section 442A.17 upon such terms as may be agreed upon between the governing bodies or authorities concerned. Without limiting the effect of the foregoing provision or any other provision of this chapter, a district, with respect to any of said purposes, may act under and be subject to section 471.59, or any other appropriate law providing for joint or cooperative action between governmental subdivisions or other public agencies. new text end

Sec. 21.

new text begin [442A.19] CONTROL OF SANITARY FACILITIES. new text end

new text begin A district may regulate and control the construction, maintenance, and use of privies, cesspools, septic tanks, toilets, and other facilities and devices for the reception or disposal of human or animal excreta or other domestic wastes within its territory so far as necessary to prevent nuisances or pollution or to protect the public health, safety, and welfare and may prohibit the use of any such facilities or devices not connected with a district disposal system, works, or facilities whenever reasonable opportunity for such connection is provided; provided, that the authority of a district under this section does not extend or apply to the construction, maintenance, operation, or use by any person other than the district of any disposal system or part thereof within the district under and in accordance with a valid and existing permit issued by the Minnesota Pollution Control Agency. new text end

Sec. 22.

new text begin [442A.20] DISTRICT PROGRAMS, SURVEYS, AND STUDIES. new text end

new text begin A district may develop general programs and particular projects within the scope of its powers and purposes and may make all surveys, studies, and investigations necessary for the programs and projects. new text end

Sec. 23.

new text begin [442A.21] GENERAL AND MUNICIPALITY POWERS. new text end

new text begin A district may do and perform all other acts and things necessary or proper for the effectuation of its powers and the accomplishment of its purposes. Without limiting the effect of the foregoing provision or any other provision of this chapter, a district, with respect to each and all of said powers and purposes, shall have like powers as are vested in municipalities with respect to any similar purposes. The exercise of such powers by a district and all matters pertaining thereto are governed by the law relating to the exercise of similar powers by municipalities and matters pertaining thereto, so far as applicable, with like force and effect, except as otherwise provided. new text end

Sec. 24.

new text begin [442A.22] ADVISORY COMMITTEE. new text end

new text begin A district board of managers may appoint an advisory committee with membership and duties as the board prescribes. new text end

Sec. 25.

new text begin [442A.23] BOARD POWERS. new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin The board of managers of every district shall have charge and control of all the funds, property, and affairs of the district. With respect thereto, the board has the same powers and duties as are provided by law for a municipality with respect to similar municipal matters, except as otherwise provided. Except as otherwise provided, the chair, vice-chair, secretary, and treasurer of the district have the same powers and duties, respectively, as the mayor, acting mayor, clerk, and treasurer of a municipality. Except as otherwise provided, the exercise of the powers and the performance of the duties of the board and officers of the district and all other activities, transactions, and procedures of the district or any of its officers, agents, or employees, respectively, are governed by the law relating to similar matters in a municipality, so far as applicable, with like force and effect. new text end

new text begin Subd. 2. new text end

new text begin Regulation of district. new text end

new text begin The board may enact ordinances, prescribe regulations, adopt resolutions, and take other appropriate action relating to any matter within the powers and purposes of the district and may do and perform all other acts and things necessary or proper for the effectuation of said powers and the accomplishment of said purposes. The board may provide that violation of a district ordinance is a penal offense and may prescribe penalties for violations, not exceeding those prescribed by law for violation of municipal ordinances. new text end

new text begin Subd. 3. new text end

new text begin Arrest; prosecution. new text end

new text begin (a) Violations of district ordinances may be prosecuted before any court having jurisdiction of misdemeanors. Any peace officer may make arrests for violations committed anywhere within the district in the same manner as for violations of city ordinances or for statutory misdemeanors. new text end

new text begin (b) All fines collected shall be deposited in the treasury of the district. new text end

Sec. 26.

new text begin [442A.24] TAX LEVIES, ASSESSMENTS, AND SERVICE CHARGES. new text end

new text begin Subdivision 1. new text end

new text begin Tax levies. new text end

new text begin The board may levy taxes for any district purpose on all property taxable within the district. new text end

new text begin Subd. 2. new text end

new text begin Particular area. new text end

new text begin In the case where a particular area within the district, but not the entire district, is benefited by a system, works, or facilities of the district, the board, after holding a public hearing as provided by law for levying assessments on benefited property, shall by ordinance establish such area as a taxing subdistrict, to be designated by number, and shall levy special taxes on all the taxable property therein, to be accounted for separately and used only for the purpose of paying the cost of construction, improvement, acquisition, maintenance, or operation of such system, works, or facilities, or paying the principal and interest on bonds issued to provide funds therefor and expenses incident thereto. The hearing may be held jointly with a hearing for the purpose of levying assessments on benefited property within the proposed taxing subdistrict. new text end

new text begin Subd. 3. new text end

new text begin Benefited property. new text end

new text begin The board shall levy assessments on benefited property to provide funds for payment of the cost of construction, improvement, or acquisition of any system, works, or facilities designed or used for any district purpose or for payment of the principal of and interest on any bonds issued therefor and expenses incident thereto. new text end

new text begin Subd. 4. new text end

new text begin Service charges. new text end

new text begin The board shall prescribe service, use, or rental charges for persons or premises connecting with or making use of any system, works, or facilities of the district; prescribe the method of payment and collection of the charges; and provide for the collection thereof for the district by any related governmental subdivision or other public agency on such terms as may be agreed upon with the governing body or other authority thereof. new text end

Sec. 27.

new text begin [442A.25] BORROWING POWERS; BONDS. new text end

new text begin Subdivision 1. new text end

new text begin Borrowing power. new text end

new text begin The board may authorize the borrowing of money for any district purpose and provide for the repayment thereof, subject to chapter 475. The taxes initially levied by any district according to section 475.61 for the payment of district bonds, upon property within each municipality included in the district, shall be included in computing the levy of the municipality. new text end

new text begin Subd. 2. new text end

new text begin Bond issuance. new text end

new text begin The board may authorize the issuance of bonds or obligations of the district to provide funds for the construction, improvement, or acquisition of any system, works, or facilities for any district purpose or for refunding any prior bonds or obligations issued for any such purpose and may pledge the full faith and credit of the district; the proceeds of tax levies or assessments; service, use, or rental charges; or any combination thereof to the payment of such bonds or obligations and interest thereon or expenses incident thereto. An election or vote of the people of the district is required to authorize the issuance of any bonds or obligations. Except as otherwise provided in this chapter, the forms and procedures for issuing and selling bonds and provisions for payment thereof must comply with chapter 475. new text end

Sec. 28.

new text begin [442A.26] FUNDS; DISTRICT TREASURY. new text end

new text begin The proceeds of all tax levies, assessments, service, use, or rental charges, and other income of the district must be deposited in the district treasury and must be held and disposed of as the board may direct for district purposes, subject to any pledges or dedications made by the board for the use of particular funds for the payment of bonds, interest thereon, or expenses incident thereto or for other specific purposes. new text end

Sec. 29.

new text begin [442A.27] EFFECT OF DISTRICT ORDINANCES AND FACILITIES. new text end

new text begin In any case where an ordinance is enacted or a regulation adopted by a district board relating to the same subject matter and applicable in the same area as an existing ordinance or regulation of a related governmental subdivision for the district, the district ordinance or regulation, to the extent of its application, supersedes the ordinance or regulation of the related governmental subdivision. In any case where an area within a district is served for any district purpose by a system, works, or facilities of the district, no system, works, or facilities shall be constructed, maintained, or operated for the same purpose in the same area by any related governmental subdivision or other public agency except as approved by the district board. new text end

Sec. 30.

new text begin [442A.28] APPLICATION. new text end

new text begin This chapter does not abridge or supersede any authority of the Minnesota Pollution Control Agency or the commissioner of health, but is subject and supplementary thereto. Districts and members of district boards are subject to the authority of the Minnesota Pollution Control Agency and have no power or authority to abate or control pollution that is permitted by and in accord with any classification of waters, standards of water quality, or permit established, fixed, or issued by the Minnesota Pollution Control Agency. new text end

Sec. 31.

new text begin [442A.29] CHIEF ADMINISTRATIVE LAW JUDGE'S POWERS. new text end

new text begin Subdivision 1. new text end

new text begin Alternative dispute resolution. new text end

new text begin (a) Notwithstanding sections 442A.01 to 442A.28, before assigning a matter to an administrative law judge for hearing, the chief administrative law judge, upon consultation with affected parties and considering the procedures and principles established in sections 442A.01 to 442A.28, may require that disputes over proposed sanitary district creations, attachments, detachments, or dissolutions be addressed in whole or in part by means of alternative dispute resolution processes in place of, or in connection with, hearings that would otherwise be required under sections 442A.01 to 442A.28, including those provided in chapter 14. new text end

new text begin (b) In all proceedings, the chief administrative law judge has the authority and responsibility to conduct hearings and issue final orders related to the hearings under sections 442A.01 to 442A.28. new text end

new text begin Subd. 2. new text end

new text begin Cost of proceedings. new text end

new text begin (a) The parties to any matter directed to alternative dispute resolution under subdivision 1 must pay the costs of the alternative dispute resolution process or hearing in the proportions that the parties agree to. new text end

new text begin (b) Notwithstanding section 14.53 or other law, the Office of Administrative Hearings is not liable for the costs. new text end

new text begin (c) If the parties do not agree to a division of the costs before the commencement of mediation, arbitration, or hearing, the costs must be allocated on an equitable basis by the mediator, arbitrator, or chief administrative law judge. new text end

new text begin (d) The chief administrative law judge may contract with the parties to a matter for the purpose of providing administrative law judges and reporters for an administrative proc