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2005 Minnesota Session Laws

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                              CHAPTER 1-S.F.No. 69 
                  An act relating to state government; appropriating 
                  money for agricultural, environmental, natural 
                  resources, and economic development purposes; 
                  establishing and modifying certain programs; providing 
                  for regulation of certain activities and practices; 
                  providing for accounts, assessments, and fees; 
                  amending Minnesota Statutes 2004, sections 3.303, by 
                  adding a subdivision; 16A.125, subdivision 5; 17.03, 
                  subdivision 13; 17.117, subdivision 11, by adding a 
                  subdivision; 17.452, by adding a subdivision; 17.982, 
                  subdivision 1; 17.983, subdivisions 1, 3; 17B.03, 
                  subdivision 1; 18B.05, subdivision 1; 18B.08, 
                  subdivision 4; 18B.26, subdivision 3; 18B.31, 
                  subdivision 5; 18B.315, subdivision 6; 18B.32, 
                  subdivision 6; 18B.33, subdivision 7; 18B.34, 
                  subdivision 5; 18C.141, subdivisions 1, 3, 5; 18C.425, 
                  subdivision 6; 18E.03, subdivision 2; 18G.03, 
                  subdivision 1; 18G.10, subdivisions 5, 7; 18G.16, 
                  subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 14; 18H.02, 
                  subdivisions 21, 22, 23, 32, 34, by adding a 
                  subdivision; 18H.05; 18H.06; 18H.07, subdivisions 1, 
                  2, 3; 18H.09; 18H.13, subdivision 1; 18H.15; 18H.18, 
                  subdivision 1; 19.64, subdivision 1; 25.341, 
                  subdivision 2; 25.39, subdivisions 1, 4; 31.94; 35.02, 
                  subdivision 1; 35.03; 35.05; 35.155; 38.01; 38.16; 
                  41A.09, subdivisions 2a, 3a, by adding subdivisions; 
                  41B.046, subdivision 5; 41B.049, subdivisions 2, 4; 
                  60A.14, subdivision 1; 60K.55, subdivision 2; 72A.20, 
                  by adding a subdivision; 72B.04, subdivision 10; 
                  82B.05, subdivisions 1, 5; 82B.09, subdivision 1; 
                  84.027, subdivisions 12, 15; 84.0274, by adding 
                  subdivisions; 84.0911, subdivision 2; 84.631; 84.775, 
                  subdivision 1; 84.780; 84.788, subdivision 3, by 
                  adding a subdivision; 84.789, by adding a subdivision; 
                  84.791, subdivisions 1, 2; 84.798, subdivision 1, by 
                  adding a subdivision; 84.82, subdivision 2, by adding 
                  a subdivision; 84.8205, subdivisions 1, 3, 4, 6; 
                  84.83, subdivisions 3, 4; 84.86, subdivision 1; 
                  84.922, subdivision 2, by adding a subdivision; 
                  84.925, subdivision 1, by adding a subdivision; 
                  84.9256, subdivision 1, as amended; 84.9257; 84.926; 
                  84.928, subdivisions 1, 2; 84D.03, subdivision 4; 
                  85.015, subdivision 5; 85.053, subdivisions 1, 2; 
                  85.054, subdivision 1, by adding a subdivision; 
                  85.055, subdivision 2, by adding a subdivision; 85.42; 
                  85.43; 86B.415, subdivisions 1, 2, 3, 4, 5, 6, by 
                  adding a subdivision; 88.17, subdivision 1, by adding 
                  subdivisions; 88.6435, subdivision 4; 89.039, 
                  subdivision 1; 89.19, subdivision 2; 89.36, 
                  subdivision 2; 89.37, subdivision 4; 90.195; 92.03, 
                  subdivision 4; 94.342, subdivisions 1, 3, 4, 5; 
                  94.343, subdivisions 1, 3, 7, 8, 10, by adding 
                  subdivisions; 94.344, subdivisions 1, 3, 5, 8, 10, by 
                  adding a subdivision; 97A.055, subdivision 4b; 
                  97A.061, subdivision 1; 97A.075, subdivision 3; 
                  97A.135, subdivision 2a; 97A.4742, subdivision 4; 
                  97A.475, subdivision 3; 97A.482; 97A.485, subdivisions 
                  6, 7; 97A.551, by adding a subdivision; 97B.005, 
                  subdivision 1, as amended; 97B.015, subdivision 7; 
                  97B.020; 97B.025, as amended; 97B.601, subdivision 3; 
                  97B.605; 97B.625, as amended; 97B.641; 97B.655, 
                  subdivision 1; 97C.085; 103B.101, subdivision 9; 
                  103E.081, by adding subdivisions; 103F.535, 
                  subdivision 1; 103G.271, subdivision 6; 103G.301, 
                  subdivision 2; 103G.615, subdivision 2; 103I.681, 
                  subdivision 11; 115.06, subdivision 4; 115.55, 
                  subdivision 5; 115.551; 115A.072, subdivision 1; 
                  115A.12; 115A.554; 115A.929; 115A.9565; 115B.48, 
                  subdivision 8; 115C.07, subdivision 3; 115C.09, 
                  subdivisions 3h, 3j; 115C.13; 115D.04, subdivision 3; 
                  116.07, subdivision 7a; 116C.779, subdivision 2; 
                  116J.551, subdivision 1; 116J.571; 116J.572; 116J.574; 
                  116J.575, as amended; 116J.63, subdivision 2; 
                  116J.8731, subdivision 5; 116J.8747, subdivision 2; 
                  116J.994, subdivisions 7, 9; 116L.03, subdivision 2; 
                  116L.05, by adding a subdivision; 116L.20, 
                  subdivisions 1, 2; 116L.666, subdivision 4; 116O.09, 
                  subdivision 1a; 116P.05, subdivision 2; 120A.40; 
                  129D.02, subdivision 3; 160.232; 161.1419, subdivision 
                  2, by adding a subdivision; 168.1296, subdivision 1; 
                  168.27, by adding a subdivision; 169.733; 169.824, 
                  subdivision 2; 169.85, subdivisions 1, 6; 169.87, 
                  subdivision 4; 169A.63, subdivision 6; 174.52, 
                  subdivision 5; 176.136, subdivision 1a; 183.41, by 
                  adding a subdivision; 183.411, subdivisions 2a, 3; 
                  183.42; 183.44, subdivision 1; 183.51, subdivision 2, 
                  by adding a subdivision; 183.545; 183.57; 216B.2424, 
                  subdivision 1a, as added; 216C.41, subdivisions 2, 5, 
                  5a; 223.17, subdivisions 3, 6; 231.16; 232.22, 
                  subdivision 3; 236.02, subdivision 4; 237.11; 237.295, 
                  subdivisions 1, 2; 237.701, subdivision 1; 239.011, 
                  subdivision 2; 239.05, subdivision 10b, by adding a 
                  subdivision; 239.09; 239.101, subdivision 3; 239.75, 
                  subdivisions 1, 5; 239.761; 239.77, by adding a 
                  subdivision; 239.79, subdivision 4; 239.791, 
                  subdivisions 1, 7, 8, 15; 239.792; 268.19, subdivision 
                  1; 282.04, subdivision 1; 282.08, as amended; 282.38, 
                  subdivision 1; 296A.01, subdivisions 2, 7, 8, 14, 19, 
                  20, 22, 23, 24, 25, 26, 28; 296A.18, subdivision 2; 
                  297H.13, subdivision 2; 298.22, by adding a 
                  subdivision; 298.28, subdivisions 9b, 10; 298.2961, by 
                  adding a subdivision; 325E.311, subdivision 6; 
                  326.975, subdivision 1; 327.23, subdivision 2; 345.47, 
                  subdivisions 3, 3a; 353.657, subdivision 1; 357.021, 
                  subdivisions 1a, 2; 373.40, subdivisions 1, 3; 394.25, 
                  subdivision 3c; 462.355, subdivision 4, as amended; 
                  462.357, subdivision 1e, by adding a subdivision; 
                  462A.05, subdivision 3a; 462A.33, subdivision 2; 
                  469.050, subdivision 5; 469.1082, subdivision 1; 
                  469.310, subdivision 11; 469.319, subdivision 1, by 
                  adding a subdivision; 469.320, subdivision 3; 469.330, 
                  subdivision 11; 469.340, subdivision 1; 471.999; 
                  473.197, subdivision 4; 517.08, subdivisions 1b, 1c; 
                  609.849, as added; Laws 1998, chapter 389, article 16, 
                  section 31, subdivision 4, as amended; Laws 1999, 
                  chapter 224, section 7, as amended; Laws 2003, chapter 
                  128, article 1, section 9, subdivision 6; Laws 2003, 
                  chapter 128, article 1, section 156; Laws 2003, 
                  chapter 128, article 1, section 167, subdivision 1; 
                  Laws 2003, chapter 128, article 1, section 172; Laws 
                  2005, chapter 97, article 13, section 1, subdivision 
                  3; Laws 2005, chapter 97, article 13, section 2, 
                  subdivision 1; proposing coding for new law in 
                  Minnesota Statutes, chapters 16C; 25; 35; 41B; 45; 
                  59B; 84; 86B; 92; 93; 97C; 103F; 116L; 116P; 156; 169; 
                  181; 237; 290; 325F; 354B; 473; repealing Minnesota 
                  Statutes 2004, sections 17.451; 17.452, subdivisions 
                  6, 6a, 7, 10, 11, 12, 13, 13a, 14, 15, 16; 17.983, 
                  subdivision 2; 18B.065, subdivision 5; 18H.02, 
                  subdivisions 15, 19; 19.64, subdivision 4a; 35.0661, 
                  subdivision 4; 41B.046, subdivision 3; 45.0295; 
                  84.901; 94.343, subdivision 6; 94.344, subdivision 6; 
                  94.348; 94.349; 115A.03, subdivisions 8a, 22a; 
                  115A.055, subdivision 1; 115D.03, subdivision 4; 
                  116J.573; 116J.58, subdivision 3; 116L.05, subdivision 
                  4; 178.12; 239.05, subdivisions 6a, 6b; 462C.15; 
                  473.156; 473.197, subdivisions 1, 2, 3, 5; 473.801, 
                  subdivision 6; Laws 1999, chapter 125, section 4, as 
                  amended. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1 
                       AGRICULTURE AND RURAL DEVELOPMENT 
           Section 1.  [AGRICULTURE AND RURAL DEVELOPMENT 
        APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or another named fund, to 
        the agencies and for the purposes specified in this act, to be 
        available for the fiscal years indicated for each purpose. The 
        figures "2006" and "2007," where used in this act, mean that the 
        appropriation or appropriations listed under them are available 
        for the fiscal year ending June 30, 2006, or June 30, 2007, 
        respectively.  The term "the first year" means the year ending 
        June 30, 2006, and the term "the second year" means the year 
        ending June 30, 2007. 
                                SUMMARY BY FUND
                                  2006          2007           TOTAL
        General            $   44,648,000 $   41,804,000 $   86,452,000
        Remediation               388,000        388,000        776,000
        TOTAL              $   45,036,000 $   42,192,000 $   87,228,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2006         2007 
        Sec. 2.  DEPARTMENT OF AGRICULTURE
        Subdivision 1.  Total 
        Appropriation                         40,177,000     37,331,000
                      Summary by Fund
        General              39,789,000    36,943,000
        Remediation             388,000       388,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Protection Services
            10,665,000     10,666,000 
                      Summary by Fund
        General              10,277,000    10,278,000
        Remediation             388,000       388,000
        $388,000 the first year and $388,000 
        the second year are from the 
        remediation fund for administrative 
        funding for the voluntary cleanup 
        program. 
        The balance in the waste pesticide 
        account in the agricultural fund is 
        canceled to the pesticide regulatory 
        account in the agricultural fund and 
        the waste pesticide account is 
        abolished. 
        $150,000 the first year and $150,000 
        the second year are from the 
        agricultural fund and must be spent for 
        increased monitoring of pesticides in 
        groundwater and surface waters 
        throughout the state.  This amount must 
        be used primarily for sample collection 
        and laboratory analytical costs and is 
        in addition to other appropriations and 
        funding for the water monitoring 
        program. 
        Subd. 3.  Agricultural Marketing
        and Development                        4,085,000      3,865,000
        $71,000 the first year and $71,000 the 
        second year are for transfer to the 
        Minnesota grown matching account and 
        may be used as grants for Minnesota 
        grown promotion under Minnesota 
        Statutes, section 17.109.  Grants may 
        be made for one year.  Notwithstanding 
        Minnesota Statutes, section 16A.28, the 
        appropriations encumbered under 
        contract on or before June 30, 2007, 
        for Minnesota grown grants in this 
        subdivision are available until June 
        30, 2009. 
        $80,000 the first year and $80,000 the 
        second year are for grants to farmers 
        for demonstration projects involving 
        sustainable agriculture as authorized 
        in Minnesota Statutes, section 17.116.  
        Of the amount for grants, up to $20,000 
        may be used for dissemination of 
        information about the demonstration 
        projects.  Notwithstanding Minnesota 
        Statutes, section 16A.28, the 
        appropriations encumbered under 
        contract on or before June 30, 2007, 
        for sustainable agriculture grants in 
        this subdivision are available until 
        June 30, 2009. 
        $100,000 the first year and $100,000 
        the second year are to provide training 
        and technical assistance to county and 
        town officials relating to livestock 
        siting issues and local zoning and land 
        use planning including a checklist 
        template that would clarify the 
        federal, state, and local government 
        requirements for consideration of an 
        animal agriculture modernization or 
        expansion project.  In developing the 
        training and technical assistance 
        program, the commissioner may seek 
        assistance from the local planning 
        assistance center of the Department of 
        Administration and shall seek guidance, 
        advice, and support of livestock 
        producer organizations, general 
        agricultural organizations, local 
        government associations, academic 
        institutions, other government 
        agencies, and others with expertise in 
        land use and agriculture. 
        $220,000 the first year is to contract 
        with the University of Minnesota for 
        further research and development of 
        livestock odor and air quality 
        management.  This is a onetime 
        appropriation. 
        The commissioner of agriculture, in 
        consultation with the commissioner of 
        transportation, shall conduct an 
        economic impact study of a rail 
        container load-out facility located in 
        the west-central area of Minnesota.  
        The study must include benefits of a 
        facility to the region and to the state 
        transportation system.  By January 15, 
        2006, the commissioner shall report to 
        the governor and the agriculture policy 
        committees of the senate and house on 
        the findings of the study. 
        Subd. 4.  Value-Added Agricultural Products 
            18,745,000     15,268,000 
        $18,145,000 the first year and 
        $15,168,000 the second year are for 
        ethanol producer payments under 
        Minnesota Statutes, section 41A.09.  
        Payments for eligible ethanol 
        production in fiscal years 2006 and 
        2007 shall be disbursed at the rate of 
        $0.13 per gallon.  If the total amount 
        for which all producers are eligible in 
        a quarter exceeds the amount available 
        for payments, the commissioner shall 
        make payments on a pro rata basis.  If 
        the appropriation exceeds the total 
        amount for which all producers are 
        eligible in a fiscal year for scheduled 
        payments and for deficiencies in 
        payments during previous fiscal years, 
        the balance in the appropriation is 
        available to the commissioner for 
        value-added agricultural programs 
        including the value-added agricultural 
        product processing and marketing grant 
        program under Minnesota Statutes, 
        section 17.101, subdivision 5.  The 
        appropriation remains available until 
        spent. 
        $500,000 in the first year is for 
        grants to gasoline service station 
        owners who, after the effective date of 
        this section, install pumps in this 
        state for dispensing E85 gasoline.  The 
        commissioner may reimburse owners of 
        gasoline service stations for up to 50 
        percent of the total cost of installing 
        an E85 pump, including the tank and any 
        related components, up to a maximum of 
        $15,000 per E85 pump.  The commissioner 
        shall grant priority for E85 pumps 
        installed in areas of the state where 
        gasoline service stations with E85 
        pumps are not reasonably available to 
        the general public.  This appropriation 
        is available until spent. 
        $100,000 the first year and $100,000 
        the second year are for ethanol 
        combustion efficiency grants under 
        Minnesota Statutes, section 41A.09, 
        subdivision 9. 
        Subd. 5.  Administration and Financial Assistance
             6,682,000      7,532,000 
        $1,005,000 the first year and 
        $1,005,000 the second year are for 
        continuation of the dairy development 
        and profitability enhancement and dairy 
        business planning grant programs 
        established under Laws 1997, chapter 
        216, section 7, subdivision 2, and Laws 
        2001, First Special Session chapter 2, 
        section 9, subdivision 2 and to 
        administer a dairy investment tax 
        credit program.  The commissioner may 
        allocate the available sums among 
        permissible activities, including 
        efforts to improve the quality of milk 
        produced in the state in the 
        proportions that the commissioner deems 
        most beneficial to Minnesota's dairy 
        farmers.  The commissioner must submit 
        a work plan detailing plans for 
        expenditures under this program to the 
        chairs of the house and senate 
        committees dealing with agricultural 
        policy and budget on or before the 
        start of each fiscal year.  If 
        significant changes are made to the 
        plans in the course of the year, the 
        commissioner must notify the chairs.  
        $50,000 the first year and $50,000 the 
        second year are for the Northern Crops 
        Institute.  These appropriations may be 
        spent to purchase equipment.  
        $19,000 the first year and $19,000 the 
        second year are for a grant to the 
        Minnesota Livestock Breeders 
        Association. 
        $2,000 the first year and $2,000 the 
        second year are for family farm 
        security interest payment adjustments.  
        If the appropriation for either year is 
        insufficient, the appropriation for the 
        other year is available for it.  No new 
        loans may be approved in fiscal year 
        2006 or 2007. 
        Aid payments to county and district 
        agricultural societies and associations 
        under Minnesota Statutes, section 
        38.02, subdivision 1, shall be 
        disbursed not later than July 15.  
        These payments are the amount of aid 
        owed by the state for an annual fair 
        held in the previous calendar year. 
        $65,000 the first year and $65,000 the 
        second year are for annual grants to 
        the Northern Minnesota Forage-Turf Seed 
        Advisory Committee for basic and 
        applied research on the improved 
        production of forage and turf seed 
        related to new and improved varieties.  
        The grant recipient may subcontract 
        with a qualified third party for some 
        or all of the basic and applied 
        research. 
        $150,000 is for a grant to Second 
        Harvest Heartland on behalf of 
        Minnesota's six Second Harvest food 
        banks for the purchase of milk for 
        distribution to Minnesota's food 
        shelves and other charitable 
        organizations that are eligible to 
        receive food from the food banks.  Milk 
        purchased under the grants must be 
        acquired from Minnesota milk processors 
        and based on low-cost bids.  The milk 
        must be allocated to each Second 
        Harvest food bank serving Minnesota 
        according to the formula used in the 
        distribution of United States 
        Department of Agriculture commodities 
        under The Emergency Food Assistance 
        Program (TEFAP).  Second Harvest 
        Heartland must submit quarterly reports 
        to the commissioner on forms prescribed 
        by the commissioner.  The reports must 
        include, but are not limited to, 
        information on the expenditure of 
        funds, the amount of milk purchased, 
        and the organizations to which the milk 
        was distributed.  Second Harvest 
        Heartland may enter into contracts or 
        agreements with food banks for shared 
        funding or reimbursement of the direct 
        purchase of milk.  Each food bank 
        receiving money from this appropriation 
        may use up to two percent of the grant 
        for administrative expenses.  This is a 
        onetime appropriation. 
        $100,000 the first year and $100,000 
        the second year are for transfer to the 
        Board of Trustees of the Minnesota 
        State Colleges and Universities for 
        mental health counseling support to 
        farm families and business operators 
        through farm business management 
        programs at Central Lakes College and 
        Ridgewater College. 
        $17,000 the first year and $18,000 the 
        second year are for grants to the 
        Minnesota Horticultural Society. 
        Sec. 3.  BOARD OF ANIMAL  
        HEALTH                                 3,259,000      3,261,000 
        $200,000 the first year and $200,000 
        the second year are for a program to 
        control paratuberculosis ("Johne's 
        disease") in domestic bovine herds.  
        $80,000 the first year and $80,000 the 
        second year are for a program to 
        investigate the avian pneumovirus 
        disease and to identify the infected 
        flocks.  This appropriation must be 
        matched on a dollar-for-dollar or 
        in-kind basis with nonstate sources and 
        is in addition to money currently 
        designated for turkey disease 
        research.  Costs of blood sample 
        collection, handling, and 
        transportation, in addition to costs 
        associated with early diagnosis tests 
        and the expenses of vaccine research 
        trials, may be credited to the match. 
        $400,000 the first year and $400,000 
        the second year are for the purposes of 
        cervidae inspection as authorized in 
        Minnesota Statutes, section 17.452. 
        $300,000 the first year and $300,000 
        the second year are for grants to the 
        Veterinary Diagnostic Laboratory at the 
        University of Minnesota to expand 
        animal disease surveillance and to 
        protect animal agriculture and public 
        health.  This appropriation is 
        available until June 30, 2007.  This is 
        a onetime appropriation.  
        Sec. 4.  AGRICULTURAL UTILIZATION
        RESEARCH INSTITUTE                     1,600,000      1,600,000
        Sec. 5.  FUND TRANSFER 
        By June 30, 2007, the commissioner of 
        the Pollution Control Agency shall 
        transfer $600,000 from the unreserved 
        balance of the environmental fund to 
        the commissioner of finance for 
        cancellation to the general fund. 
           Sec. 6.  [16C.137] [MINIMIZING ENERGY USE; RENEWABLE 
        FUELS.] 
           Subdivision 1.  [GOALS AND ACTIONS.] (a) Using 2005 as a 
        baseline, the state of Minnesota shall reduce the use of 
        gasoline by on-road vehicles owned by state departments by 25 
        percent by 2010 and by 50 percent by 2015, and the use of 
        petroleum-based diesel fuel in diesel-fueled vehicles by ten 
        percent by 2010 and 25 percent by 2015. 
           (b) To meet the goals established in paragraph (a), each 
        state department must, whenever legally, technically, and 
        economically feasible, subject to the specific needs of the 
        department and responsible management of agency finances: 
           (1) ensure that all new on-road vehicles purchased, 
        excluding emergency and law enforcement vehicles: 
           (i) use "cleaner fuels" as that term is defined in section 
        16C.135, subdivision 1, clauses (1), (3), and (4); or 
           (ii) have fuel efficiency ratings that exceed 30 miles per 
        gallon for city usage or 35 miles per gallon for highway usage, 
        including but not limited to hybrid electric cars and 
        hydrogen-powered vehicles; 
           (2) increase its use of renewable transportation fuels, 
        including ethanol, biodiesel, and hydrogen from agricultural 
        products; and 
           (3) increase its use of Web-based Internet applications and 
        other electronic information technologies to enhance the access 
        to and delivery of government information and services to the 
        public, and reduce the reliance on the department's fleet for 
        the delivery of such information and services. 
           Subd. 2.  [SMARTFLEET COMMITTEE.] (a) The commissioner of 
        administration, or the commissioner's designee, shall chair a 
        SmartFleet Committee consisting of representatives designated by 
        the commissioners of the Pollution Control Agency, the 
        Departments of Agriculture and Commerce, and other state 
        departments that wish to participate.  To ensure effective and 
        efficient state participation, the SmartFleet Committee must 
        assist state departments in implementing the requirements of 
        this section, including providing information, guidance, sample 
        policies and procedures, and technical and planning assistance. 
           (b) The SmartFleet Committee must evaluate the goals and 
        directives established in this section by December 2006 and 
        periodically thereafter.  The committee may make recommendations 
        to the governor and appropriate committees of the legislature 
        for new or adjusted goals and directives, in light of the 
        progress the state has made implementing this section, and of 
        the availability of new or improved technologies. 
           (c) For the systematic and efficient monitoring of progress 
        in implementing this section by the SmartFleet Committee, the 
        Department of Administration shall implement a fleet reporting 
        and information management system.  Each department will use 
        this management system to demonstrate its progress in complying 
        with this section. 
           Subd. 3.  [EXCLUSION.] Petroleum-based diesel fuel used in 
        a vehicle which a department has retrofit to use ultra low 
        sulfur diesel fuel and to add additional emissions control 
        technologies is excluded when evaluating progress toward the 
        reduction goals established in subdivision 1.  This exclusion 
        applies only to vehicles purchased before the model year in 
        which the federal Environmental Protection Agency's new clean 
        diesel emission reduction rules take effect. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 7.  Minnesota Statutes 2004, section 17.03, 
        subdivision 13, is amended to read: 
           Subd. 13.  [SEMIANNUAL REPORTS.] (a) By October 15 and 
        April 15 of each year, The commissioner shall submit to the 
        legislative committees having jurisdiction over appropriations 
        from the agricultural fund in section 16A.531 a report reports 
        on the amount of revenue raised in each fee account within the 
        fund, the expenditures from each account, and the purposes for 
        which the expenditures were made.  The reports must be issued in 
        February and November each year, to coincide with the forecasts 
        of revenue and expenditures prepared under section 16A.103. 
           (b) The report delivered on October 15 in February of each 
        year must include the commissioner's recommendations, if any, 
        for changes in statutes relating to the fee accounts of the 
        agricultural fund. 
           Sec. 8.  Minnesota Statutes 2004, section 17.117, is 
        amended by adding a subdivision to read: 
           Subd. 5b.  [APPLICATION FEE.] The commissioner may impose a 
        nonrefundable application fee of $50 for each loan issued under 
        the program.  The fees must be credited to the agricultural best 
        management practices administration account, which is hereby 
        established in the agricultural fund.  Interest earned in the 
        account accrues to the account.  Money in the account and 
        interest earned in the accounts established in the agricultural 
        fund under subdivision 5a are appropriated to the commissioner 
        for administrative expenses of the program. 
           Sec. 9.  Minnesota Statutes 2004, section 17.117, 
        subdivision 11, is amended to read: 
           Subd. 11.  [LOANS ISSUED TO BORROWER.] (a) Local lenders 
        may issue loans only for projects that are approved and 
        certified by the local government unit as meeting priority needs 
        identified in a comprehensive water management plan or other 
        local planning documents, are in compliance with accepted 
        practices, standards, specifications, or criteria, and are 
        eligible for financing under Environmental Protection Agency or 
        other applicable guidelines. 
           (b) The local lender may use any additional criteria 
        considered necessary to determine the eligibility of borrowers 
        for loans. 
           (c) Local lenders shall set the terms and conditions of 
        loans to borrowers, except that: 
           (1) no loan to a borrower may exceed $50,000; 
           (2) no loan for a project may exceed $50,000; and 
           (3) no borrower shall, at any time, have multiple loans 
        from this program with a total outstanding loan balance of more 
        than $50,000.  
           (d) The maximum term length for conservation tillage and 
        individual sewage treatment system projects is five years.  The 
        maximum term length for other projects in this paragraph is ten 
        years. 
           (e) Notwithstanding paragraph (c), a local lender may issue 
        a loan of up to $100,000 for a community sewage treatment system 
        serving two or more households.  
           (f) Fees charged at the time of closing must: 
           (1) be in compliance with normal and customary practices of 
        the local lender; 
           (2) be in accordance with published fee schedules issued by 
        the local lender; 
           (3) not be based on participation program; and 
           (4) be consistent with fees charged other similar types of 
        loans offered by the local lender. 
           (f) (g) The interest rate assessed to an outstanding loan 
        balance by the local lender must not exceed three percent per 
        year. 
           Sec. 10.  Minnesota Statutes 2004, section 17.452, is 
        amended by adding a subdivision to read: 
           Subd. 5a.  [OTHER APPLICABLE DEFINITIONS.] The definitions 
        in section 35.153 apply to this section. 
           Sec. 11.  Minnesota Statutes 2004, section 17.982, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CRIMINAL PENALTIES.] A person who violates 
        a provision of chapter 28A, 29, 31, 31A, 31B, or 34 for which a 
        penalty has not been prescribed is guilty of a misdemeanor.  
           Sec. 12.  Minnesota Statutes 2004, section 17.983, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ADMINISTRATIVE PENALTIES; CITATION.] If a 
        person has violated a provision of chapter 28A, 29, 31, 31A, 
        31B, 32, or 34, the commissioner may issue a written citation to 
        the person by personal service or by certified mail.  The 
        citation shall must describe the nature of the violation and the 
        statute or rule alleged to have been violated; state the time 
        for correction, if applicable; and the amount of any proposed 
        fine.  The citation must advise the person to notify the 
        commissioner in writing within 30 days if the person wishes to 
        appeal the citation.  If the person fails to appeal the 
        citation, the citation is the final order and not subject to 
        further review.  
           Sec. 13.  Minnesota Statutes 2004, section 17.983, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CONTESTED CASE.] If a person appeals a citation 
        or a penalty assessment within the time limits in 
        subdivisions subdivision 1 and 2, the commissioner, within 40 
        days after receiving the appeal, shall initiate a contested 
        proceeding under chapter 14.  The report of the administrative 
        law judge is the final decision of the commissioner of 
        agriculture. 
           Sec. 14.  Minnesota Statutes 2004, section 17B.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COMMISSIONER'S POWERS.] The commissioner 
        of agriculture shall exercise general supervision over the 
        inspection, grading, weighing, sampling, and analysis of grain 
        subject to the provisions of the United States Grain Standards 
        Act of 1976 and the rules promulgated thereunder by the United 
        States Department of Agriculture.  This activity may take place 
        within or outside the state of Minnesota.  Scale testing must be 
        performed at export locations or, upon request from and with the 
        consent of the delegated authority, at domestic locations.  Fees 
        for the testing of scales and weighing equipment shall be fixed 
        by the commissioner and must be uniform with those charged by 
        the Division of Weights and Measures of the Department of 
        Commerce. 
           Sec. 15.  Minnesota Statutes 2004, section 18B.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] A pesticide regulatory 
        account is established in the agricultural fund.  Fees, 
        assessments, and penalties collected under this chapter must be 
        deposited in the agricultural fund and credited to the pesticide 
        regulatory account.  Money in the account, including interest, 
        is appropriated to the commissioner for the administration and 
        enforcement of this chapter. 
           Sec. 16.  Minnesota Statutes 2004, section 18B.08, 
        subdivision 4, is amended to read: 
           Subd. 4.  [APPLICATION FEE.] A person initially applying 
        for a chemigation permit must pay a nonrefundable application 
        fee of $50 $250.  A person who holds a fertilizer chemigation 
        permit under section 18C.205, is exempt from the fee in this 
        subdivision.  
           Sec. 17.  Minnesota Statutes 2004, section 18B.26, 
        subdivision 3, is amended to read: 
           Subd. 3.  [APPLICATION FEE.] (a) A registrant shall pay an 
        annual application fee for each pesticide to be registered, and 
        this fee is set at one-tenth of one percent for calendar year 
        1990, at one-fifth of one percent for calendar year 1991, and at 
        two-fifths of one 0.4 percent for calendar year 1992 and 
        thereafter of annual gross sales within the state and annual 
        gross sales of pesticides used in the state, with a minimum 
        nonrefundable fee of $250.  The registrant shall determine when 
        and which pesticides are sold or used in this state.  The 
        registrant shall secure sufficient sales information of 
        pesticides distributed into this state from distributors and 
        dealers, regardless of distributor location, to make a 
        determination.  Sales of pesticides in this state and sales of 
        pesticides for use in this state by out-of-state distributors 
        are not exempt and must be included in the registrant's annual 
        report, as required under paragraph (c), and fees shall be paid 
        by the registrant based upon those reported sales.  Sales of 
        pesticides in the state for use outside of the state are exempt 
        from the application fee in this paragraph if the registrant 
        properly documents the sale location and distributors.  A 
        registrant paying more than the minimum fee shall pay the 
        balance due by March 1 based on the gross sales of the pesticide 
        by the registrant for the preceding calendar year.  The fee for 
        disinfectants and sanitizers shall be the minimum.  The minimum 
        fee is due by December 31 preceding the year for which the 
        application for registration is made.  The commissioner shall 
        spend at least $300,000 per fiscal year from the pesticide 
        regulatory account for the purposes of the waste pesticide 
        collection program. 
           (b) An additional fee of $100 must be paid by the applicant 
        for each pesticide to be registered if the application is a 
        renewal application that is submitted after December 31. 
           (c) A registrant must annually report to the commissioner 
        the amount and type of each registered pesticide sold, offered 
        for sale, or otherwise distributed in the state.  The report 
        shall be filed by March 1 for the previous year's registration.  
        The commissioner shall specify the form of the report and 
        require additional information deemed necessary to determine the 
        amount and type of pesticides annually distributed in the 
        state.  The information required shall include the brand name, 
        amount, and formulation of each pesticide sold, offered for 
        sale, or otherwise distributed in the state, but the information 
        collected, if made public, shall be reported in a manner which 
        does not identify a specific brand name in the report. 
           (d) A registrant who is required to pay more than the 
        minimum fee for any pesticide under paragraph (a) must pay a 
        late fee penalty of $100 for each pesticide application fee paid 
        after March 1 in the year for which the license is to be issued. 
           Sec. 18.  Minnesota Statutes 2004, section 18B.31, 
        subdivision 5, is amended to read: 
           Subd. 5.  [APPLICATION FEE.] (a) An application for a 
        pesticide dealer license must be accompanied by a nonrefundable 
        application fee of $50 $150. 
           (b) If an application for renewal of a pesticide dealer 
        license is not filed before January 1 of the year for which the 
        license is to be issued, an additional fee of $20 must be paid 
        by the applicant before the license is issued. 
           Sec. 19.  Minnesota Statutes 2004, section 18B.315, 
        subdivision 6, is amended to read: 
           Subd. 6.  [FEES.] (a) An applicant for an aquatic pest 
        control license for a business must pay a nonrefundable 
        application fee of $100 $200.  An employee of a licensed 
        business must pay a nonrefundable application fee of $50 for an 
        individual aquatic pest control license. 
           (b) An application received after expiration of the aquatic 
        pest control license is subject to a penalty of 50 percent of 
        the application fee. 
           (c) An applicant that meets renewal requirements by 
        reexamination instead of attending workshops must pay the 
        equivalent workshop fee for the reexamination as determined by 
        the commissioner. 
           Sec. 20.  Minnesota Statutes 2004, section 18B.32, 
        subdivision 6, is amended to read: 
           Subd. 6.  [FEES.] (a) An applicant for a structural pest 
        control license for a business must pay a nonrefundable 
        application fee of $100 $200.  An employee of a licensed 
        business must pay a nonrefundable application fee of $50 for an 
        individual structural pest control license.  
           (b) An application received after expiration of the 
        structural pest control license is subject to a penalty fee of 
        50 percent of the application fee. 
           (c) An applicant that meets renewal requirements by 
        reexamination instead of attending workshops must pay the 
        equivalent workshop fee for the reexamination as determined by 
        the commissioner. 
           Sec. 21.  Minnesota Statutes 2004, section 18B.33, 
        subdivision 7, is amended to read: 
           Subd. 7.  [APPLICATION FEES.] (a) A person initially 
        applying for or renewing a commercial applicator license must 
        pay a nonrefundable application fee of $50. 
           (b) If A license renewal application is not filed 
        before received after March 1 of in the year for which the 
        license is to be issued, an additional is subject to a penalty 
        fee of $10 must be paid before the commercial applicator 50 
        percent of the application fee.  The penalty fee must be paid 
        before the renewal license may be issued. 
           (c) An application for a duplicate commercial applicator 
        license must be accompanied by a nonrefundable application fee 
        of $10.  
           Sec. 22.  Minnesota Statutes 2004, section 18B.34, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FEES.] (a) A person initially applying for or 
        renewing a noncommercial applicator license must pay a 
        nonrefundable application fee of $50, except an applicant who is 
        a government or Minnesota Conservation Corps employee who uses 
        pesticides in the course of performing official duties must pay 
        a nonrefundable application fee of $10.  
           (b) If an A license renewal application for renewal of a 
        noncommercial license is not filed before received after March 1 
        in the year for which the license is to be issued, an additional 
        is subject to a penalty fee of $10 must be paid before the 50 
        percent of the application fee.  The penalty fee must be paid 
        before the renewal license may be issued.  
           (c) An application for a duplicate noncommercial applicator 
        license must be accompanied by a nonrefundable application fee 
        of $10.  
           Sec. 23.  Minnesota Statutes 2004, section 18C.141, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROGRAM ESTABLISHMENT.] The commissioner 
        shall establish a program voluntary programs to certify the 
        accuracy of analyses from soil and manure testing laboratories 
        and promote standardization of soil and manure testing 
        procedures and analytical results.  
           Sec. 24.  Minnesota Statutes 2004, section 18C.141, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ANALYSES REPORTING STANDARDS.] (a) The results 
        obtained from soil, manure, or plant analysis must be reported 
        in accordance with standard reporting units established by the 
        commissioner by rule.  The standard reporting units must conform 
        as far as practical to uniform standards that are adopted on a 
        regional or national basis. 
           (b) If a certified laboratory offers a recommendation for 
        use in Minnesota, the University of Minnesota recommendation or 
        that of another land grant college in a contiguous state must be 
        offered in addition to other recommendations, and the source of 
        the recommendation must be identified on the recommendation 
        form.  If relative levels such as low, medium, or high are 
        presented to classify the analytical results, the corresponding 
        relative levels based on the analysis as designated by the 
        University of Minnesota or the land grant college in a 
        contiguous state must also be presented. 
           Sec. 25.  Minnesota Statutes 2004, section 18C.141, 
        subdivision 5, is amended to read: 
           Subd. 5.  [CERTIFICATION FEES.] (a) The commissioner may 
        charge the actual costs for check sample preparation and 
        shipping. 
           (b) A laboratory applying for certification shall pay an 
        application fee of $100 and a certification fee of $100 before 
        the certification is issued may be charged a nonrefundable 
        certification fee to cover the actual costs for administration 
        of the program.  
           (b) (c) Certification is valid for one year and the renewal 
        fee is $100.  The commissioner shall charge an additional 
        application fee of $100 if a certified laboratory allows 
        certification to lapse before applying for renewed certification 
        renewable on an annual basis. 
           (c) The commissioner shall notify a certified lab that its 
        certification lapses within 30 to 60 days of the date when the 
        certification lapses. 
           (d) The commissioner may accept donations to support the 
        development and operation of soil and manure programs. 
           (e) Revenues under this section are deposited in the 
        fertilizer account of the agricultural fund. 
           Sec. 26.  Minnesota Statutes 2004, section 18C.425, 
        subdivision 6, is amended to read: 
           Subd. 6.  [INSPECTION FEES.] The person responsible for 
        payment of the inspection fees for fertilizers, soil amendments, 
        or plant amendments sold and used in this state must pay an 
        inspection fee of 15 30 cents per ton of fertilizer, soil 
        amendment, and plant amendment sold or distributed in this 
        state, with a minimum of $10 on all tonnage reports.  Products 
        sold or distributed to manufacturers or exchanged between them 
        are exempt from the inspection fee imposed by this subdivision 
        if the products are used exclusively for manufacturing purposes. 
           Sec. 27.  Minnesota Statutes 2004, section 18E.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXPENDITURES.] (a) Money in the agricultural 
        chemical response and reimbursement account may only be used: 
           (1) to pay for the commissioner's responses to incidents 
        under chapters 18B, 18C, and 18D that are not eligible for 
        payment under section 115B.20, subdivision 2; 
           (2) to pay for emergency responses that are otherwise 
        unable to be funded; 
           (3) to reimburse and pay corrective action costs under 
        section 18E.04; and 
           (4) by the board to reimburse the commissioner for board 
        staff and other administrative costs up to $175,000 $225,000 per 
        fiscal year. 
           (b) Money in the agricultural chemical response and 
        reimbursement account is appropriated to the commissioner to 
        make payments as provided in this subdivision. 
           Sec. 28.  Minnesota Statutes 2004, section 18G.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ENTRY AND INSPECTION.] (a) The 
        commissioner may enter and inspect a public or private place 
        that might harbor plant pests and may require that the owner 
        destroy or treat plant pests, plants, or other material. 
           (b) If the owner fails to properly comply with a directive 
        of the commissioner, the commissioner may have any necessary 
        work done at the owner's expense.  The commissioner shall notify 
        the owner of the deadline for paying those expenses.  If the 
        owner does not reimburse the commissioner for an expense within 
        a time specified by the commissioner, the expense is a charge 
        upon the county as provided in subdivision 4. 
           (c) If a dangerous harmful plant pest infestation or 
        infection threatens plants of an area in the state, the 
        commissioner may take any measures necessary to eliminate or 
        alleviate the danger potential significant damage or harm. 
           (d) The commissioner may collect fees required by this 
        chapter. 
           (e) The commissioner may issue and enforce a written or 
        printed "stop-sale" order orders, compliance agreements, and 
        other directives and requests to the owner or custodian of any 
        plants or articles infested or infected with dangerously 
        injurious a harmful plant pests pest. 
           Sec. 29.  Minnesota Statutes 2004, section 18G.10, 
        subdivision 5, is amended to read: 
           Subd. 5.  [CERTIFICATE FEES.] (a) The commissioner shall 
        assess the fees in paragraphs (b) to (f) for the inspection, 
        service, and work performed in carrying out the issuance of a 
        phytosanitary certificate or export certificate.  The inspection 
        fee must be based on mileage and inspection time. 
           (b) Mileage charge:  current United States Internal Revenue 
        Service mileage rate. 
           (c) Inspection time:  $50 per hour minimum or fee necessary 
        to cover department costs.  Inspection time includes the driving 
        time to and from the location in addition to the time spent 
        conducting the inspection. 
           (d) A fee must be charged for any certificate issued that 
        requires laboratory analysis before issuance.  The fee must be 
        deposited into the laboratory account as authorized in section 
        17.85. If laboratory analysis or other technical analysis is 
        required to issue a certificate, the commissioner must set and 
        collect the fee to recover this additional cost. 
           (e) Certificate fee for product value greater than $250:  
        $75 for each phytosanitary or export certificate issued for any 
        single shipment valued at more than $250 in addition to any 
        mileage or inspection time charges that are assessed. 
           (f) Certificate fee for product value less than $250:  $25 
        for each phytosanitary or export certificate issued for any 
        single shipment valued at less than $250 in addition to any 
        mileage or inspection time charges that are assessed. 
           (g) For services provided for in subdivision 7 that are 
        goods and services provided for the direct and primary use of a 
        private individual, business, or other entity, the commissioner 
        must set and collect the fees to cover the cost of the services 
        provided. 
           Sec. 30.  Minnesota Statutes 2004, section 18G.10, 
        subdivision 7, is amended to read: 
           Subd. 7.  [PLANT PROTECTION INSPECTIONS, SUPPLEMENTAL, 
        ADDITIONAL, OR OTHER CERTIFICATES, AND PERMITS, AND FEES.] (a) 
        The commissioner may provide inspection, sampling, or 
        certification services to ensure that Minnesota plant products 
        or commodities meet import requirements of other states or 
        countries. 
           (b) The state plant regulatory official may issue permits 
        and certificates verifying that various Minnesota agricultural 
        products or commodities meet specified phytosanitary plant 
        health requirements, treatment requirements, or pest absence 
        assurances based on determinations by the commissioner.  The 
        commissioner may collect fees sufficient to recover costs for 
        these permits or certificates.  The fees must be deposited in 
        the nursery and phytosanitary account. 
           Sec. 31.  Minnesota Statutes 2004, section 18G.16, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
        subdivision apply to this section. 
           (b) "Metropolitan area" means the counties of Anoka, 
        Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 
           (c) "Municipality" means a home rule charter or statutory 
        city or a town located in the metropolitan area that exercises 
        municipal powers under section 368.01 or any general or special 
        law; a special park district organized under chapter 398; a 
        special-purpose park and recreation board organized under the 
        city charter of a city of the first class located in the 
        metropolitan area; a county in the metropolitan area for the 
        purposes of county-owned property or any portion of a county 
        located outside the geographic boundaries of a city or a town 
        exercising municipal powers; and a municipality or county 
        located outside the metropolitan area with an approved disease 
        control program. 
           (d) "Shade tree disease pest" means Dutch elm disease, oak 
        wilt, or any disorder pests or pathogens affecting the growth 
        and life of shade trees. 
           (e) "Wood utilization or disposal system" means facilities, 
        equipment, or systems used for the removal and disposal of 
        diseased or pest-infested shade trees, including collection, 
        transportation, processing, or storage of wood and assisting in 
        the recovery of materials or energy from wood. 
           (f) "Approved disease pest control program" means a 
        municipal plan approved by the commissioner to control or 
        eradicate a shade tree disease pest. 
           (g) "Disease Pest control area" means an area approved by 
        the commissioner within which a municipality will conduct an 
        approved disease pest control program. 
           (h) "Sanitation" means the identification, inspection, 
        disruption of a common root system, girdling, trimming, removal, 
        and disposal of dead, pest-infested or diseased wood of shade 
        trees, including subsidies for trees removed pursuant to 
        subdivision 4, on public or private property within a disease 
        control area. 
           (i) "Reforestation" means the replacement of shade trees 
        removed from public property and the planting of a tree as part 
        of a municipal disease control program.  For purposes of this 
        paragraph, "public property" includes private property within 
        five feet of the boulevard or street terrace in a city that 
        enacted an ordinance on or before January 1, 1977, that 
        prohibits or requires a permit for the planting of trees in the 
        public right-of-way. 
           (j) "Shade tree" means a woody perennial grown primarily 
        for aesthetic or environmental purposes. 
           Sec. 32.  Minnesota Statutes 2004, section 18G.16, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COMMISSIONER TO ADOPT RULES.] The commissioner 
        may adopt rules relating to shade tree pest and disease control 
        in any municipality.  The rules must prescribe control measures 
        to be used to prevent the spread of shade tree pests and 
        diseases and must include the following: 
           (1) a definition of shade tree; 
           (2) qualifications for tree inspectors; 
           (3) methods of identifying diseased or infested 
        pest-infested shade trees; 
           (4) procedures for giving reasonable notice of inspection 
        of private real property; 
           (5) measures for the removal of any shade tree which may 
        contribute to the spread of shade tree pests or disease and for 
        reforestation of pest or disease control areas; 
           (6) approved methods of treatment of shade trees; 
           (7) criteria for priority designation areas in an approved 
        pest or disease control program; and 
           (8) any other matters determined necessary by the 
        commissioner to prevent the spread of shade tree pests or 
        disease and enforce this section. 
           Sec. 33.  Minnesota Statutes 2004, section 18G.16, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DIAGNOSTIC LABORATORY.] The commissioner shall 
        operate a diagnostic laboratory for culturing diseased or 
        infested pest-infested trees for positive identification of 
        diseased or infested pest-infested shade trees. 
           Sec. 34.  Minnesota Statutes 2004, section 18G.16, 
        subdivision 4, is amended to read: 
           Subd. 4.  [COOPERATION BY UNIVERSITY.] The University of 
        Minnesota College of Natural Resources shall cooperate with the 
        department in control of shade tree disease, pests, and 
        disorders and management of shade tree populations.  The College 
        of Natural Resources shall cooperate with the department to 
        conduct tree inspector certification and recertification 
        workshops for certified tree inspectors.  The College of Natural 
        Resources shall also conduct research into means for identifying 
        diseased or pest-infested shade trees, develop and evaluate 
        control measures, and develop means for disposing of and using 
        diseased or pest-infested shade trees. 
           Sec. 35.  Minnesota Statutes 2004, section 18G.16, 
        subdivision 5, is amended to read: 
           Subd. 5.  [EXPERIMENTAL PROGRAMS.] The commissioner may 
        establish experimental programs for sanitation or treatment of 
        shade tree diseases and for research into tree varieties most 
        suitable for municipal reforestation.  The research must include 
        considerations of disease resistance, energy conservation, and 
        other factors considered appropriate.  The commissioner may make 
        grants to municipalities or enter into contracts with 
        municipalities, nurseries, colleges, universities, or state or 
        federal agencies in connection with experimental shade tree 
        programs including research to assist municipalities in 
        establishing priority designation areas for shade tree disease 
        pest control and energy conservation. 
           Sec. 36.  Minnesota Statutes 2004, section 18G.16, 
        subdivision 6, is amended to read: 
           Subd. 6.  [REMOVAL OF DISEASED OR INFESTED PEST-INFESTED 
        TREES.] After reasonable notice of inspection, an owner of real 
        property containing a shade tree that is diseased, infested, or 
        may contribute to the spread of pests or disease, must remove or 
        treat the tree within the period of time and in the manner 
        established by the commissioner.  Trees that are not removed in 
        compliance with the commissioner's rules must be declared a 
        public nuisance and removed or treated by approved methods by 
        the municipality, which may assess all or part of the expense, 
        limited to the lowest contract rates available that include wage 
        levels which meet Minnesota minimum wage standards, to the 
        property and the expense becomes a lien on the property.  A 
        municipality may assess not more than 50 percent of the expense 
        of treating with an approved method or removing diseased or 
        pest-infested shade trees located on street terraces or 
        boulevards to the abutting properties and the assessment becomes 
        a lien on the property. 
           Sec. 37.  Minnesota Statutes 2004, section 18G.16, 
        subdivision 7, is amended to read: 
           Subd. 7.  [RULES; APPLICABILITY TO MUNICIPALITIES.] The 
        rules of the commissioner apply in a municipality unless the 
        municipality adopts an ordinance determined by the commissioner 
        to be more stringent than the rules of the commissioner.  The 
        rules of the commissioner or the municipality apply to all state 
        agencies, special purpose districts, and metropolitan 
        commissions as defined in section 473.121, subdivision 5a, that 
        own or control land adjacent to or within a shade tree disease 
        pest control area. 
           Sec. 38.  Minnesota Statutes 2004, section 18G.16, 
        subdivision 8, is amended to read: 
           Subd. 8.  [GRANTS TO MUNICIPALITIES.] (a) The commissioner 
        may, in the name of the state and within the limit of 
        appropriations provided, make a grant to a municipality with an 
        approved disease pest control program for the partial funding of 
        municipal sanitation and reforestation programs to replace trees 
        lost to pest, disease, or natural disaster.  The commissioner 
        may make a grant to a home rule charter or statutory city, a 
        special purpose park and recreation board organized under a 
        charter of a city of the first class, a nonprofit corporation 
        serving a city of the first class, or a county having an 
        approved disease control program for the acquisition or 
        implementation of a wood use or disposal system. 
           (b) The commissioner shall adopt rules for the 
        administration of grants under this subdivision.  The rules must 
        contain: 
           (1) procedures for grant applications; 
           (2) conditions and procedures for the administration of 
        grants; 
           (3) criteria of eligibility for grants including, but not 
        limited to, those specified in this subdivision; and 
           (4) other matters the commissioner may find necessary to 
        the proper administration of the grant program. 
           (c) Grants for wood utilization and disposal systems made 
        by the commissioner under this subdivision must not exceed 50 
        percent of the total cost of the system.  Grants for sanitation 
        and reforestation must be combined into one grant program.  
        Grants to a municipality for sanitation must not exceed 50 
        percent of sanitation costs approved by the commissioner 
        including any amount of sanitation costs paid by special 
        assessments, ad valorem taxes, federal grants, or other funds.  
        A municipality must not specially assess a property owner an 
        amount greater than the amount of the tree's sanitation cost 
        minus the amount of the tree's sanitation cost reimbursed by the 
        commissioner.  Grants to municipalities for reforestation must 
        not exceed 50 percent of the wholesale cost of the trees planted 
        under the reforestation program; provided that a reforestation 
        grant to a county may include 90 percent of the cost of the 
        first 50 trees planted on public property in a town not included 
        in the definition of municipality in subdivision 1 and with less 
        than 1,000 population when the town applies to the county.  
        Reforestation grants to towns and home rule charter or statutory 
        cities of less than 4,000 population with an approved disease 
        pest control program may include 90 percent of the cost of the 
        first 50 trees planted on public property.  The governing body 
        of a municipality that receives a reforestation grant under this 
        section must appoint up to seven residents of the municipality 
        or designate an existing municipal board or committee to serve 
        as a reforestation advisory committee to advise the governing 
        body of the municipality in the administration of the 
        reforestation program.  For the purpose of this subdivision, 
        "cost" does not include the value of a gift or dedication of 
        trees required by a municipal ordinance but does include 
        documented "in-kind" services or voluntary work for 
        municipalities with a population of less than 1,000 according to 
        the most recent federal census. 
           (d) Based upon estimates submitted by the municipality to 
        the commissioner, which state the estimated costs of sanitation 
        and reforestation in the succeeding quarter under an approved 
        program, the commissioner shall direct quarterly advance 
        payments to be made by the state to the municipality commencing 
        April 1.  The commissioner shall direct adjustment of any 
        overestimate in a succeeding quarter.  A municipality may elect 
        to receive the proceeds of its sanitation and reforestation 
        grants on a periodic cost reimbursement basis.  
           (e) A home rule charter or statutory city, county outside 
        the metropolitan area, or any municipality, as defined in 
        subdivision 1, may submit an application for a grant authorized 
        by this subdivision concurrently with its request for approval 
        of a disease pest control program. 
           (f) The commissioner shall not make grants for sanitation 
        and reforestation or wood utilization and disposal systems in 
        excess of 67 percent of the amounts appropriated for those 
        purposes to the municipalities located within the metropolitan 
        area, as defined in subdivision 1. 
           Sec. 39.  Minnesota Statutes 2004, section 18G.16, 
        subdivision 9, is amended to read: 
           Subd. 9.  [SUBSIDIES TO CERTAIN OWNERS.] A municipality may 
        provide subsidies to nonprofit organizations, to owners of 
        private residential property of five acres or less, to owners of 
        property used for a homestead of more than five acres but less 
        than 20 acres, and to nonprofit cemeteries for the approved 
        treatment or removal of diseased or pest-infested shade trees. 
           Notwithstanding any law to the contrary, an owner of 
        property on which shade trees are located may contract with a 
        municipality to provide protection against the cost of approved 
        treatment or removal of diseased or pest-infested shade trees or 
        shade trees that will contribute to the spread of shade tree 
        diseases or pest infestations.  Under the contract, the 
        municipality must pay for the removal or approved treatment 
        under terms and conditions determined by its governing body. 
           Sec. 40.  Minnesota Statutes 2004, section 18G.16, 
        subdivision 14, is amended to read: 
           Subd. 14.  [MUNICIPAL OPTION TO PARTICIPATE IN PROGRAM.] 
        The term "municipality" shall include only those municipalities 
        which have informed the commissioner of their intent to continue 
        an approved disease pest control program.  Any municipality 
        desiring to participate in the grants-in-aid for the partial 
        funding of municipal sanitation and reforestation programs must 
        notify the commissioner in writing before the beginning of the 
        calendar year in which it wants to participate and must have an 
        approved disease pest control program during any year in which 
        it receives grants-in-aid.  Notwithstanding the provisions of 
        any law to the contrary, no municipality shall be required to 
        have an approved disease control program after December 31, 1981.
           Sec. 41.  Minnesota Statutes 2004, section 18H.02, is 
        amended by adding a subdivision to read: 
           Subd. 12a.  [INDIVIDUAL.] "Individual" means a human being. 
           Sec. 42.  Minnesota Statutes 2004, section 18H.02, 
        subdivision 21, is amended to read: 
           Subd. 21.  [NURSERY STOCK BROKER.] "Nursery stock broker" 
        means a nursery stock dealer engaged in the business of selling 
        or reselling certified nursery stock as a business transaction 
        without taking ownership or handling the nursery stock. 
           Sec. 43.  Minnesota Statutes 2004, section 18H.02, 
        subdivision 22, is amended to read: 
           Subd. 22.  [NURSERY STOCK DEALER.] "Nursery stock dealer" 
        means a person involved in the acquisition and further 
        distribution of certified nursery stock; the utilization of 
        certified nursery stock for landscaping or purchase of certified 
        nursery stock for other persons; or the distribution 
        of certified nursery stock with a mechanical digger, commonly 
        known as a tree spade, or by any other means.  A person who 
        purchases more than half of the certified nursery stock offered 
        for sale at a sales location during the current certificate year 
        is considered a nursery stock dealer rather than a nursery stock 
        grower for the purposes of determining a proper fee schedule.  
        Nursery stock brokers, landscapers, and tree spade operators are 
        considered nursery stock dealers for purposes of determining 
        proper certification. 
           Sec. 44.  Minnesota Statutes 2004, section 18H.02, 
        subdivision 23, is amended to read: 
           Subd. 23.  [NURSERY STOCK GROWER.] "Nursery stock grower" 
        includes, but is not limited to, a person who raises, grows, or 
        propagates nursery stock, outdoors or indoors.  A person who 
        grows more than half of the certified nursery stock offered for 
        sale at a sales location during the current certificate year is 
        considered a nursery stock grower for the purpose of determining 
        a proper fee schedule. 
           Sec. 45.  Minnesota Statutes 2004, section 18H.02, 
        subdivision 32, is amended to read: 
           Subd. 32.  [SALES LOCATION.] "Sales location" means a fixed 
        location from which certified nursery stock is displayed or 
        distributed. 
           Sec. 46.  Minnesota Statutes 2004, section 18H.02, 
        subdivision 34, is amended to read: 
           Subd. 34.  [TREE SPADE OPERATOR.] "Tree spade operator" 
        means a nursery stock dealer person who uses a tree spade to dig 
        nursery stock and sells, sell, offers offer for sale, 
        distributes distribute, and transports or transport certified 
        nursery stock. 
           Sec. 47.  Minnesota Statutes 2004, section 18H.05, is 
        amended to read: 
           18H.05 [NURSERY CERTIFICATE REQUIREMENTS.] 
           (a) No person may offer for sale or distribute certified 
        nursery stock as a nursery stock grower or dealer without first 
        obtaining the appropriate nursery stock certificate from the 
        commissioner.  The commissioner may not issue a certificate to a 
        person who does not sell certified nursery stock.  Certificates 
        are issued solely for these purposes and may not be used for 
        other purposes. 
           (b) A certificate issued by the commissioner expires on 
        December 31 of the year it is issued. 
           (c) A person required to be certified by this section must 
        apply for a certificate or for renewal on a form furnished by 
        the commissioner which must contain: 
           (1) the name and address of the applicant, the number of 
        locations to be operated by the applicant and their addresses, 
        and the assumed business name of the applicant; 
           (2) if other than an individual, a statement whether a 
        person is a partnership, corporation, or other organization; and 
           (3) the type of business to be operated and, if the 
        applicant is an agent, the principals the applicant represents; 
        and 
           (4) source or sources of purchased nursery stock. 
           (d) No person may:  
           (1) falsely claim to be a certified dealer, grower, broker, 
        or agent; or 
           (2) make willful false statements when applying for a 
        certificate; or 
           (3) sell or distribute certified nursery stock to an 
        uncertified nursery stock dealer who is required to be certified 
        or nursery stock grower. 
           (e) Each application for a certificate must be accompanied 
        by the appropriate certificate fee under section 18H.07. 
           (f) Certificates issued by the commissioner must be 
        prominently displayed to the public in the place of business 
        where certified nursery stock is sold or distributed. 
           (g) The commissioner may refuse to issue a certificate for 
        cause. 
           (h) Each grower or dealer is entitled to one sales location 
        under the certificate of the grower or dealer.  Each additional 
        sales location maintained by the person requires the payment of 
        the full certificate fee for each additional sales outlet. 
           (i) A grower who is also a dealer is certified only as a 
        grower for that specific site. 
           (j) A certificate is personal to the applicant and may not 
        be transferred.  A new certificate is necessary if the business 
        entity is changed or if the membership of a partnership is 
        changed, whether or not the business name is changed. 
           (k) The certificate issued to a dealer or grower applies to 
        the particular premises named in the certificate.  However, if 
        prior approval is obtained from the commissioner, the place of 
        business may be moved to the other premises or location without 
        an additional certificate fee. 
           (l) A collector of nursery stock from the wild is required 
        to obtain a dealer's certificate from the commissioner and is 
        subject to all the requirements that apply to the inspection of 
        nursery stock.  All collected nursery stock must be labeled as 
        "collected from the wild." 
           Sec. 48.  Minnesota Statutes 2004, section 18H.06, is 
        amended to read: 
           18H.06 [EXEMPT NURSERY SALES.] 
           Subdivision 1.  [NOT-FOR-PROFIT SALES.] An organization or 
        individual may offer for sale certified nursery stock and be 
        exempt from the requirement to obtain a nursery stock dealer 
        certificate if sales are conducted by a nonprofit charitable, 
        educational, or religious organization that: 
           (1) conducts sales or distributions of certified nursery 
        stock on 14 ten or fewer days in a calendar year; and 
           (2) uses the proceeds from its certified nursery stock 
        sales or distribution for charitable, educational, or religious 
        purposes. 
           Subd. 2.  [NURSERY HOBBYIST OCCASIONAL SALES.] (a) An 
        organization or individual may offer nursery stock for sale and 
        be exempt from the requirement to obtain a nursery stock dealer 
        certificate if: 
           (1) the gross sales of all nursery stock in a calendar year 
        do not exceed $2,000; 
           (2) all nursery stock sold or distributed by the hobbyist 
        individual is intended for planting in Minnesota; and 
           (3) all nursery stock purchased or procured for resale or 
        distribution was grown in Minnesota and has been certified by 
        the commissioner; and 
           (4) conducts sales or distributions of nursery stock on ten 
        or fewer days in a calendar year. 
           (b) The commissioner may prescribe the conditions of the 
        exempt nursery sales under this subdivision and may conduct 
        routine inspections of the nursery stock offered for sale. 
           Sec. 49.  Minnesota Statutes 2004, section 18H.07, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT OF FEES.] The commissioner 
        shall establish fees sufficient to allow for the administration 
        and enforcement of this chapter and rules adopted under this 
        chapter, including the portion of general support costs and 
        statewide indirect costs of the agency attributable to that 
        function, with a reserve sufficient for up to six months.  The 
        commissioner shall review the fee schedule annually in 
        consultation with the Minnesota Nursery and Landscape Advisory 
        Committee.  For the certificate year beginning January 1, 2004 
        2006, the fees are as described in this section. 
           Sec. 50.  Minnesota Statutes 2004, section 18H.07, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NURSERY STOCK GROWER CERTIFICATE.] (a) A nursery 
        stock grower must pay an annual fee based on the area of all 
        acreage on which nursery stock is grown for certification as 
        follows: 
           (1) less than one-half acre, $150; 
           (2) from one-half acre to two acres, $200; 
           (3) over two acres up to five acres, $300; 
           (4) over five acres up to ten acres, $350; 
           (5) over ten acres up to 20 acres, $500; 
           (6) over 20 acres up to 40 acres, $650; 
           (7) over 40 acres up to 50 acres, $800; 
           (8) over 50 acres up to 200 acres, $1,100; 
           (9) over 200 acres up to 500 acres, $1,500; and 
           (10) over 500 acres, $1,500 plus $2 for each additional 
        acre. 
           (b) In addition to the fees in paragraph (a), a penalty of 
        ten percent of the fee due must be charged for each month, or 
        portion thereof, that the fee is delinquent up to a maximum of 
        30 percent for any application for renewal not received by 
        January 1 of the year following expiration of a certificate. 
           Sec. 51.  Minnesota Statutes 2004, section 18H.07, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NURSERY STOCK DEALER CERTIFICATE.] (a) A nursery 
        stock dealer must pay an annual fee based on the dealer's gross 
        sales of certified nursery stock per location during the 
        preceding most recent certificate year.  A certificate applicant 
        operating for the first time must pay the minimum fee.  The fees 
        per sales location are: 
           (1) gross sales up to $20,000 $5,000, $150; 
           (2) gross sales over $20,000 $5,000 up to $100,000 $20,000, 
        $175; 
           (3) gross sales over $100,000 $20,000 up to 
        $250,000 $50,000, $300; 
           (4) gross sales over $250,000 $50,000 up to 
        $500,000 $75,000, $425; 
           (5) gross sales over $500,000 $75,000 up to 
        $1,000,000 $100,000, $550; 
           (6) gross sales over $1,000,000 $100,000 up to 
        $2,000,000 $200,000, $675; and 
           (7) gross sales over $2,000,000 $200,000, $800. 
           (b) In addition to the fees in paragraph (a), a penalty of 
        ten percent of the fee due must be charged for each month, or 
        portion thereof, that the fee is delinquent up to a maximum of 
        30 percent for any application for renewal not received by 
        January 1 of the year following expiration of a certificate. 
           Sec. 52.  Minnesota Statutes 2004, section 18H.09, is 
        amended to read: 
           18H.09 [NURSERY INSPECTIONS REQUIRED STOCK CERTIFICATION 
        REQUIREMENTS.] 
           (a) All nursery stock growing at sites in Minnesota must 
        have had an identified by nursery stock growers and submitted 
        for inspection must be inspected by the commissioner during 
        within the previous 12 months prior to sale and found apparently 
        free from quarantine and regulated nonquarantine pests as well 
        as significantly dangerous or potentially damaging plant pests.  
        The commissioner may waive a site inspection under the following 
        conditions: 
           (1) the nursery stock is not going to be sold within 12 
        months; 
           (2) the nursery stock will not be moved out of Minnesota; 
        and 
           (3) the nursery site or stock is not subject to 
        certification requirements associated with a state or federally 
        regulated or quarantined plant pest. 
           All nursery stock originating from out of state and offered 
        for sale in Minnesota must have been inspected by the 
        appropriate state or federal agency during the previous 12 
        months and found free from quarantine and regulated 
        nonquarantine pests as well as significantly dangerous or 
        potentially damaging plant pests.  A nursery stock certificate 
        is valid from January 1 to December 31. 
           (b) Nursery stock must be accessible to the commissioner 
        for inspection during regular business hours.  Weeds or other 
        growth that hinder a proper inspection are grounds to suspend or 
        withhold a certificate or require a reinspection. 
           (c) Inspection reports issued to growers must contain a 
        list of the plant pests found at the time of inspection.  
        Withdrawal-from-distribution orders are considered part of the 
        inspection reports.  A withdrawal-from-distribution order must 
        contain a list of plants withdrawn from distribution and the 
        location of the plants. 
           (d) The commissioner may post signs to delineate sections 
        withdrawn from distribution.  These signs must remain in place 
        until the commissioner removes them or grants written permission 
        to the grower to remove the signs. 
           (e) Inspection reports issued to dealers must outline the 
        violations involved and corrective actions to be taken including 
        withdrawal-from-distribution orders which would specify nursery 
        stock that could not be distributed from a certain area. 
           (f) Optional inspections of plants may be conducted by the 
        commissioner upon request by any persons desiring an 
        inspection.  A fee as provided in section 18H.07 must be charged 
        for such an inspection. 
           Sec. 53.  Minnesota Statutes 2004, section 18H.13, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LABELING IDENTIFICATION OF 
        ORIGIN.] Plants, plant materials, or nursery stock distributed 
        into Minnesota must be conspicuously labeled on the exterior 
        with the name of the consignor, the state of origin, and the 
        name of the consignee and must be accompanied by certification 
        documents to satisfy all applicable state and federal 
        quarantines.  Proof of valid nursery certification and origin of 
        all nursery stock must also accompany the shipment.  It is the 
        shared responsibility of both the consignee and consignor to 
        examine all shipments for the presence of current and applicable 
        nursery stock certifications for all plant material from all 
        sources of stock in each shipment. 
           Sec. 54.  Minnesota Statutes 2004, section 18H.15, is 
        amended to read: 
           18H.15 [VIOLATIONS.] 
           (a) A person who offers to distribute nursery stock that is 
        uncertified, uninspected, or falsely labeled or advertised 
        possesses an illegal regulated commodity that is considered 
        infested or infected with harmful plant pests and subject to 
        regulatory action and control.  If the commissioner determines 
        that the provisions of this section have been violated, the 
        commissioner may order the destruction of all of the plants 
        unless the person: 
           (1) provides proper phytosanitary preclearance, 
        phytosanitary certification, or nursery stock certification; 
           (2) agrees to have the plants, plant materials, or nursery 
        stock returned to the consignor; and 
           (3) provides proper documentation, certification, or 
        compliance to support advertising claims. 
           (b) The plant owner is liable for all costs associated with 
        a withdrawal-from-distribution order or the quarantine, 
        treatment, or destruction of plants.  The commissioner is not 
        liable for actual or incidental costs incurred by a person due 
        to the commissioner's actions.  The commissioner must be 
        reimbursed by the owner of the plants for the actual expenses 
        incurred in carrying out a withdrawal-from-distribution order or 
        the quarantine, treatment, or destruction of any plants. 
           (c) It is unlawful for a person to: 
           (1) misrepresent, falsify, or knowingly distribute, sell, 
        advertise, or display damaged, mislabeled, misrepresented, 
        infested, or infected nursery stock; 
           (2) fail to obtain a nursery certificate as required by the 
        commissioner; 
           (3) fail to renew a nursery certificate, but continue 
        business operations; 
           (4) fail to display a nursery certificate; 
           (5) misrepresent or falsify a nursery certificate; 
           (6) refuse to submit to a nursery inspection; 
           (7) fail to provide the cooperation necessary to conduct a 
        successful nursery inspection; 
           (8) offer for sale uncertified plants, plant materials, or 
        nursery stock; 
           (9) possess an illegal regulated commodity; 
           (10) violate or disobey a commissioner's order; 
           (11) violate a quarantine issued by the commissioner; 
           (12) fail to obtain phytosanitary certification for plant 
        material or nursery stock brought into Minnesota; 
           (13) deface, mutilate, or destroy a nursery stock 
        certificate, phytosanitary certificate, or phytosanitary 
        preclearance certificate, or other commissioner mark, permit, or 
        certificate; 
           (14) fail to notify the commissioner of an uncertified 
        shipment of plants, plant materials, or nursery stock; or 
           (15) transport uncertified plants, plant materials, or 
        nursery stock in Minnesota; or 
           (16) sell nursery stock to an uncertified nursery stock 
        dealer who is required to be certified. 
           Sec. 55.  Minnesota Statutes 2004, section 18H.18, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RESTRICTIONS ON COLLECTING.] No person 
        shall distribute the state flower (Cypripedium reginae), or any 
        species of lady slipper (Cypripedieae) orchids 
        (Orchidaceae), any member of the orchid family, any gentian 
        (Gentiana), arbutus (Epigaea repens), lilies (Lilium species), 
        coneflowers (Echinacea species), bloodroot (Sanguinaria 
        canadensis), mayapple (Podophyllum peltatutum), any species of 
        trillium (Trillium species), or lotus (Nelumbo lutea), which 
        have been collected in any manner from any public or private 
        property without the written permission of the property owner 
        and written authorization from the commissioner. 
           Sec. 56.  Minnesota Statutes 2004, section 19.64, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REGISTRATION.] Every person who owns, 
        leases, or possesses colonies of bees or who intends to bring 
        bees into the state under an entry permit shall register the 
        bees with the commissioner on or before April 15 June 1 of each 
        year or within 15 days of entry into Minnesota or taking 
        possession of hives, whichever comes first.  The registration 
        application shall include the name and address of the applicant, 
        a description of the exact location of each of the applicant's 
        apiaries by county, township, range and quarter section, and 
        other information required by the commissioner.  The fee for 
        registration under this subdivision is $10 $25 for beekeepers 
        with fewer than 50 colonies and $50 for beekeepers with 50 or 
        more colonies maintained in the state.  The commissioner shall 
        provide registered beekeepers with the Minnesota pest report.  
        The registration required by this section is not transferable.  
        At least one colony in each location must be plainly and legibly 
        marked with the owner's name and telephone number and address, 
        and other information required by the commissioner.  The 
        department shall provide information on colony locations as 
        reported on the registrations on an Internet Web site or through 
        other appropriate measures. 
           Sec. 57.  Minnesota Statutes 2004, section 25.341, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPLICATION; FEE; TERM.] A person who is 
        required to have a commercial feed license shall submit an 
        application on a form provided or approved by the commissioner 
        accompanied by a license fee of $25 paid to the commissioner for 
        each facility location.  A license is not transferable from one 
        person to another, from one ownership to another, or from one 
        location to another.  The license year is the calendar year.  A 
        license expires on December 31 of the year for which it is 
        issued, except that a license is valid through January 31 of the 
        next year or until the issuance of the renewal license, 
        whichever comes first, if the licensee has filed a renewal 
        application with the commissioner on or before December 31 of 
        the year for which the current license was issued.  A new 
        applicant who Any person who is required to have, but fails to 
        obtain a license within 15 working days of notification of the 
        requirement to obtain a license, or a licensee who fails to 
        comply with license renewal requirements, shall pay a $50 late 
        fee in addition to the license fee.  The commissioner may issue 
        a withdrawal from distribution order on any commercial feed that 
        an unlicensed person produces or distributes in the state until 
        a license is issued.  
           Sec. 58.  [25.342] [CERTIFICATES, FREE SALE.] 
           A nonrefundable application fee of $25 must accompany all 
        free sale certificate requests to facilitate the movement of 
        Minnesota processed and manufactured feeds destined for export 
        from the state.  Each label submitted for review must be 
        accompanied by a nonrefundable $50 application fee. 
           Sec. 59.  Minnesota Statutes 2004, section 25.39, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AMOUNT OF FEE.] (a) An inspection fee at 
        the rate of 16 cents per ton must be paid to the commissioner on 
        commercial feeds distributed in this state by the person who 
        first distributes the commercial feed, except that: 
           (1) no fee needs to need be paid on: 
           (1) (i) a commercial feed if the payment has been made by a 
        previous distributor; or 
           (2) (ii) customer formula feeds if the inspection fee is 
        paid on the commercial feeds which are used as ingredients; or 
           (3) commercial feeds used as ingredients for the 
        manufacture of commercial feeds if the fee has been paid by a 
        previous distributor.  If the fee has already been paid, credit 
        must be given for that payment. (2) a Minnesota feed distributor 
        who distributes can substantiate that greater than 50 percent of 
        the distribution of commercial feed is to purchasers outside the 
        state may purchase commercial feeds, without payment by any 
        person of the inspection fee required on those purchases, under 
        a tonnage fee exemption permit issued by the commissioner.  Such 
        location specific permits shall only be issued on a calendar 
        year basis to commercial feed distributors who submit a $100 
        nonrefundable application fee and comply with rules adopted by 
        the commissioner relative to record keeping, tonnage of 
        commercial feed distributed in Minnesota, total of all 
        commercial feed tonnage distributed, and all other information 
        which the commissioner may require so as to ensure that proper 
        inspection fee payment has been made.  
           (b) In the case of pet food distributed in the state only 
        in packages of ten pounds or less, a listing of each product and 
        a current label for each product must be submitted annually on 
        forms provided by the commissioner and accompanied by an annual 
        fee of $50 for each product in lieu of the inspection fee.  This 
        annual fee is due by July 1.  The inspection fee required by 
        paragraph (a) applies to pet food distributed in packages 
        exceeding ten pounds. 
           (c) In the case of specialty pet food distributed in the 
        state only in packages of ten pounds or less, a listing of each 
        product and a current label for each product must be submitted 
        annually on forms provided by the commissioner and accompanied 
        by an annual fee of $25 for each product in lieu of the 
        inspection fee.  This annual fee is due by July 1.  The 
        inspection fee required by paragraph (a) applies to specialty 
        pet food distributed in packages exceeding ten pounds.  
           (d) The minimum inspection fee is $10 per annual reporting 
        period. 
           Sec. 60.  Minnesota Statutes 2004, section 25.39, 
        subdivision 4, is amended to read: 
           Subd. 4.  [COMMERCIAL FEED INSPECTION ACCOUNT.] A 
        commercial feed inspection account is established in the 
        agricultural fund.  Fees and penalties collected under sections 
        25.35 to 25.43 this chapter and interest attributable to money 
        in the account must be deposited in the agricultural fund and 
        credited to the commercial feed inspection account.  Money in 
        the account, including interest earned, is appropriated to the 
        commissioner for the administration and enforcement of sections 
        25.341 to 25.43 this chapter. 
           Sec. 61.  Minnesota Statutes 2004, section 31.94, is 
        amended to read: 
           31.94 [COMMISSIONER DUTIES.] 
           (a) In order to promote opportunities for organic 
        agriculture in Minnesota, the commissioner shall: 
           (1) survey producers and support services and organizations 
        to determine information and research needs in the area of 
        organic agriculture practices; 
           (2) work with the University of Minnesota to demonstrate 
        the on-farm applicability of organic agriculture practices to 
        conditions in this state; 
           (3) direct the programs of the department so as to work 
        toward the promotion of organic agriculture in this state; 
           (4) inform agencies of how state or federal programs could 
        utilize and support organic agriculture practices; and 
           (5) work closely with producers, the University of 
        Minnesota, the Minnesota Trade Office, and other appropriate 
        organizations to identify opportunities and needs as well as 
        ensure coordination and avoid duplication of state agency 
        efforts regarding research, teaching, marketing, and extension 
        work relating to organic agriculture. 
           (b) By November 15 of each even-numbered year the 
        commissioner, in conjunction with the task force created in 
        paragraph (c), shall report on the status of organic agriculture 
        in Minnesota to the legislative policy and finance committees 
        and divisions with jurisdiction over agriculture.  The report 
        must include: 
           (1) a description of current state or federal programs 
        directed toward organic agriculture, including significant 
        results and experiences of those programs; 
           (2) a description of specific actions the department of 
        agriculture is taking in the area of organic agriculture, 
        including the proportion of the department's budget spent on 
        organic agriculture; 
           (3) a description of current and future research needs at 
        all levels in the area of organic agriculture; 
           (4) suggestions for changes in existing programs or 
        policies or enactment of new programs or policies that will 
        affect organic agriculture; 
           (5) a description of market trends and potential for 
        organic products; 
           (6) available information, using currently reliable data, 
        on the price received, yield, and profitability of organic 
        farms, and a comparison with data on conventional farms; and 
           (7) available information, using currently reliable data, 
        on the positive and negative impacts of organic production on 
        the environment and human health. 
           (c) The commissioner shall appoint a Minnesota Organic 
        Advisory Task Force to advise the commissioner on policies and 
        practices to improve organic agriculture in Minnesota.  The task 
        force must consist of the following residents of the state: 
           (1) three farmers using organic agriculture methods; 
           (2) two organic food wholesalers, retailers, or 
        distributors; 
           (3) one representative of organic food certification 
        agencies; 
           (4) two organic food processors; 
           (5) one representative from the Minnesota Extension 
        Service; 
           (6) one representative from a Minnesota postsecondary 
        research institution; 
           (7) one representative from a nonprofit organization 
        representing producers; 
           (8) one at-large member; 
           (9) one representative from the United States Department of 
        Agriculture; and 
           (10) one organic consumer representative. 
        Terms, compensation, and removal of members are governed by 
        section 15.059, subdivision 6.  The task force must meet at 
        least twice each year and expires on June 30, 2005 2009. 
           (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. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 62.  Minnesota Statutes 2004, section 35.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERS; OFFICERS.] The board has five 
        members appointed by the governor with the advice and consent of 
        the senate, three of whom are producers of livestock in the 
        state, and two of whom are practicing veterinarians licensed in 
        Minnesota.  The dean of the College of Veterinary Medicine and 
        the director of the Veterinary Diagnostic Laboratory of the 
        University of Minnesota may serve as consultant consultants to 
        the board without vote.  Appointments to fill unexpired terms 
        must be made from the classes to which the retiring members 
        belong.  The board shall elect a president and a vice-president 
        from among its members and a veterinarian licensed in Minnesota 
        who is not a member to be its executive director for a term of 
        one year and until a successor qualifies.  The board shall set 
        the duties of the director. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 63.  Minnesota Statutes 2004, section 35.03, is 
        amended to read: 
           35.03 [POWERS, DUTIES, AND REPORTS.] 
           The board shall protect the health of Minnesota domestic 
        animals and carry out the provisions of this chapter.  The board 
        shall make rules necessary to protect the health of domestic 
        animals.  The board shall meet at least quarterly.  Officers 
        must be elected each April.  On or before November 1 of each 
        year the board shall publish an annual report.  The University 
        of Minnesota Veterinary Diagnostic Laboratory is the official 
        laboratory for the board.  At least quarterly, the director of 
        the Veterinary Diagnostic Laboratory must report on the 
        laboratory's activities. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 64.  Minnesota Statutes 2004, section 35.05, is 
        amended to read: 
           35.05 [AUTHORITY OF STATE BOARD.] 
           (a) The state board may quarantine or kill any domestic 
        animal infected with, or which has been exposed to, a contagious 
        or infectious dangerous disease if it is necessary to protect 
        the health of the domestic animals of the state.  
           (b) The board may regulate or prohibit the arrival in and 
        departure from the state of infected or exposed animals and, in 
        case of violation of any rule or prohibition, may detain any 
        animal at its owner's expense.  The board may regulate or 
        prohibit the importation of domestic animals which, in its 
        opinion, may injure the health of Minnesota livestock.  
           (c) When the governor declares an emergency under section 
        35.0661, the board, through its executive director, may 
        implement the United States Voluntary Johne's Disease Herd 
        Status Program for Cattle assume control of such resources 
        within the University of Minnesota's Veterinary Diagnostic 
        Laboratory as necessary to effectively address the disease 
        outbreak.  The director of the laboratory and other laboratory 
        personnel must cooperate fully in performing necessary functions 
        related to the outbreak or threatened outbreak. 
           (d) Rules adopted by the board under authority of this 
        chapter must be published in the State Register. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 65.  [35.153] [DEFINITIONS.] 
           Subdivision 1.  [APPLICABILITY.] The definitions in this 
        section apply to section 17.452, this section, and section 
        35.155.  
           Subd. 2.  [CERVIDAE.] "Cervidae" means animals that are 
        members of the family Cervidae and includes, but is not limited 
        to, white-tailed deer, mule deer, red deer, elk, moose, caribou, 
        reindeer, and muntjac. 
           Subd. 3.  [FARMED CERVIDAE.] "Farmed cervidae" means 
        cervidae that are: 
           (1) raised for any purpose; and 
           (2) registered in a manner approved by the Board of Animal 
        Health. 
           Subd. 4.  [OWNER.] "Owner" means a person who owns or is 
        responsible for the raising of farmed cervidae. 
           Subd. 5.  [HERD.] "Herd" means all cervidae: 
           (1) maintained on common ground for any purpose; or 
           (2) under common ownership or supervision, geographically 
        separated, but that have an interchange or movement of animals 
        without regard to whether the animals are infected with or 
        exposed to diseases. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 66.  Minnesota Statutes 2004, section 35.155, is 
        amended to read: 
           35.155 [FARMED CERVIDAE.] 
           Subdivision 1.  [RUNNING AT LARGE PROHIBITED.] (a) An owner 
        may not allow farmed cervidae to run at large.  The owner must 
        make all reasonable efforts to return escaped farmed cervidae to 
        their enclosures as soon as possible.  The owner must notify the 
        commissioner of natural resources of the escape of farmed 
        cervidae if the farmed cervidae are not returned or captured by 
        the owner within 24 hours of their escape. 
           (b) An owner is liable for expenses of another person in 
        capturing, caring for, and returning farmed cervidae that have 
        left their enclosures if the person capturing the farmed 
        cervidae contacts the owner as soon as possible. 
           (c) If an owner is unwilling or unable to capture escaped 
        farmed cervidae, the commissioner of natural resources may 
        destroy the escaped farmed cervidae.  The commissioner of 
        natural resources must allow the owner to attempt to capture the 
        escaped farmed cervidae prior to destroying the farmed 
        cervidae.  Farmed cervidae that are not captured by 24 hours 
        after escape may be destroyed. 
           Subd. 2.  [WILD CERVIDAE INSIDE CONFINEMENT AREA.] An owner 
        or an employee or agent under the direction of the owner must 
        destroy wild cervidae found within the owner's farmed cervidae 
        confinement area.  The owner, employee, or agent must report the 
        wild cervidae destroyed to a conservation officer or an employee 
        of the Department of Natural Resources, Division of Wildlife, 
        within 24 hours.  The wild cervidae must be disposed of as 
        prescribed by the commissioner of natural resources. 
           Subd. 3.  [FARMING IN NATIVE ELK AREA.] A person may not 
        raise farmed red deer in the native elk area without written 
        approval of the commissioner of natural resources.  The native 
        elk area is the area north of U.S. Highway 2 and west of U.S. 
        Highway 71 and trunk highway 72.  The commissioner of natural 
        resources shall review the proposed farming operation and 
        approve with any condition or deny approval based on risks to 
        the native elk population. 
           Subd. 4.  [FENCING.] Farmed cervidae must be confined in a 
        manner designed to prevent escape.  All perimeter fences for 
        farmed cervidae must be at least 96 inches in height and be 
        constructed and maintained in a way that prevents the escape of 
        farmed cervidae or entry into the premises by free-roaming 
        cervidae. 
           Subd. 5.  [DISEASE CONTROL PROGRAMS.] Farmed cervidae are 
        subject to this chapter and the rules of the Board of Animal 
        Health in the same manner as other livestock and domestic 
        animals, including provisions related to importation and 
        transportation. 
           Subd. 6.  [IDENTIFICATION.] (a) Farmed cervidae must be 
        identified by means approved by the Board of Animal Health.  The 
        identification must be visible to the naked eye during daylight 
        under normal conditions at a distance of 50 yards.  Newborn 
        animals must be identified before December 31 of the year in 
        which the animal is born or before movement from the premises, 
        whichever occurs first. 
           (b) The Board of Animal Health shall register farmed 
        cervidae.  The owner must submit the registration request on 
        forms provided by the board.  The forms must include sales 
        receipts or other documentation of the origin of the cervidae.  
        The board shall provide copies of the registration information 
        to the commissioner of natural resources upon request.  The 
        owner must keep written records of the acquisition and 
        disposition of registered farmed cervidae. 
           Subd. 7.  [INSPECTION.] The commissioner of agriculture and 
        the Board of Animal Health may inspect farmed cervidae, farmed 
        cervidae facilities, and farmed cervidae records.  For each 
        herd, the owner or owners must, on or before January 1, pay an 
        annual inspection fee equal to $10 for each cervid in the herd 
        as reflected in the most recent inventory submitted to the Board 
        of Animal Health, up to a maximum fee of $100.  The commissioner 
        of natural resources may inspect farmed cervidae, farmed 
        cervidae facilities, and farmed cervidae records with reasonable 
        suspicion that laws protecting native wild animals have been 
        violated and must notify the owner in writing at the time of the 
        inspection of the reason for the inspection and must inform the 
        owner in writing after the inspection of whether (1) the cause 
        of the inspection was unfounded; or (2) there will be an ongoing 
        investigation or continuing evaluation. 
           Subd. 8.  [CERVIDAE INSPECTION ACCOUNT.] A cervidae 
        inspection account is established in the state treasury.  The 
        fees collected under this section and interest attributable to 
        money in the account must be deposited in the state treasury and 
        credited to the cervidae inspection account in the special 
        revenue fund.  Money in the account, including interest earned, 
        is appropriated to the Board of Animal Health for the 
        administration and enforcement of this section. 
           Subd. 9.  [CONTESTED CASE HEARING.] A person raising farmed 
        cervidae that is aggrieved with any decision regarding the 
        farmed cervidae may request a contested case hearing under 
        chapter 14. 
           Subd. 10.  [MANDATORY REGISTRATION.] A person may not 
        possess live cervidae in Minnesota unless the person is 
        registered with the Board of Animal Health and meets all the 
        requirements for farmed cervidae under this section.  Cervidae 
        possessed in violation of this subdivision may be seized and 
        destroyed by the commissioner of natural resources. 
           Subd. 11.  [MANDATORY SURVEILLANCE FOR CHRONIC WASTING 
        DISEASE.] (a) An inventory for each farmed cervidae herd must be 
        verified by an accredited veterinarian and filed with the Board 
        of Animal Health every 12 months. 
           (b) Movement of farmed cervidae from any premises to 
        another location must be reported to the Board of Animal Health 
        within 14 days of the movement on forms approved by the Board of 
        Animal Health. 
           (c) All animals from farmed cervidae herds that are over 16 
        months of age that die or are slaughtered must be tested for 
        chronic wasting disease. 
           Subd. 12.  [IMPORTATION.] A person must not import cervidae 
        into the state from a herd that is infected or exposed to 
        chronic wasting disease or from a known chronic wasting disease 
        endemic area, as determined by the board.  A person may import 
        cervidae into the state only from a herd that is not in a known 
        chronic wasting disease endemic area, as determined by the 
        board, and the herd has been subject to a state or provincial 
        approved chronic wasting disease monitoring program for at least 
        three years.  Cervidae imported in violation of this section may 
        be seized and destroyed by the commissioner of natural resources.
           Subd. 13.  [RULES.] The Board of Animal Health shall adopt 
        rules as necessary to implement this section and to otherwise 
        provide for the control of cervidae diseases. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 67.  Minnesota Statutes 2004, section 38.01, is 
        amended to read: 
           38.01 [COUNTY AGRICULTURAL SOCIETIES; FORMATION, POWERS.] 
           (a) An agricultural society or association may be 
        incorporated by citizens of any county, or two or more counties 
        jointly, but only one agricultural society shall be organized in 
        any county.  An agricultural society may sue and be sued in its 
        corporate name; may adopt bylaws, rules, and regulations, alter 
        and amend the same; may purchase and hold, lease and control any 
        real or personal property deemed to promote the objects of the 
        society, and may rent, lease, sell, and convey the same.  Any 
        income from the rental or lease of such the property may be used 
        for any or all of the following purposes:  (1) Acquisition of 
        additional real property; (2) Construction of additional 
        buildings; or (3) Maintenance and care of the society's 
        property.  This section shall not be construed to preclude the 
        continuance of any agricultural society now existing or the 
        granting of aid thereto to the society. 
           (b) An agricultural society shall have jurisdiction and 
        control of the grounds upon which its fairs are held and of the 
        streets and grounds adjacent thereto grounds during such the 
        fair, so far as may be necessary for such purpose fair purposes, 
        and are exempt from local zoning ordinances throughout the year 
        as provided in section 38.16.  At or before the time of holding 
        any fair, the agricultural society may appoint, in writing, as 
        many persons to act as special constables as necessary, for and 
        during the time of holding the same and for a reasonable time 
        prior and subsequent thereto.  These constables, before entering 
        upon their duties, shall take and subscribe the usual oath of 
        office, endorsed upon their appointment, and have and exercise 
        upon the grounds of the society, and within one-half mile 
        thereof, all the power and authority of constables at common law 
        and, in addition thereto, may, within these limits, without 
        warrant, arrest any person found violating any laws of the 
        state, or any rule, regulation, or bylaw of the society, and 
        summarily remove the persons and property of such offenders from 
        the grounds and take them before any court of competent 
        jurisdiction to be dealt with according to law.  Each such peace 
        officer shall wear an appropriate badge of office while acting 
        as such.  
           (c) As an alternative to the appointment of special 
        constables, The society may contract with the sheriff or, local 
        municipality, or security guard as defined in section 626.88 to 
        provide the society with the same police service it may secure 
        by appointing special constables.  A person providing police 
        service pursuant to such a contract is not, by reason of the 
        contract, classified as an employee of the agricultural society 
        for any purpose other than the discharge of powers and duties 
        under the contract.  
           (d) Any person who shall willfully violate any rule or 
        regulation made by such agricultural societies during the days 
        of a fair shall be guilty of a misdemeanor.  
           The provisions of this section supersede all special laws 
        on the same subject. 
           Sec. 68.  Minnesota Statutes 2004, section 38.16, is 
        amended to read: 
           38.16 [EXEMPTION FROM ZONING ORDINANCES.] 
           When lands lying within the corporate limits of towns or 
        cities are owned by a county or agricultural society and used 
        for agricultural fair purposes, the lands and the buildings now 
        or hereafter erected are exempt from the zoning, building, and 
        other ordinances of the town or city; provided, that no license 
        or permit need be obtained from, nor fee paid to, the town or 
        city in connection with the use of the lands.  For the purposes 
        of this section, "agricultural fair purposes" includes the 
        management of property as provided in section 38.01, paragraph 
        (a). 
           Sec. 69.  Minnesota Statutes 2004, section 41A.09, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [DEFINITIONS.] For the purposes of this section, 
        the terms defined in this subdivision have the meanings given 
        them. 
           (a) "Ethanol" means fermentation ethyl alcohol derived from 
        agricultural products, including potatoes, cereal grains, cheese 
        whey, and sugar beets; forest products; or other renewable 
        resources, including residue and waste generated from the 
        production, processing, and marketing of agricultural products, 
        forest products, and other renewable resources, that: 
           (1) meets all of the specifications in ASTM specification 
        D4806-01; and 
           (2) is denatured as specified in Code of Federal 
        Regulations, title 27, parts 20 and 21. 
           (b) "Ethanol plant" means a plant at which ethanol is 
        produced. 
           (c) "Commissioner" means the commissioner of agriculture. 
           (d) "Rural economic infrastructure" means the development 
        of activities that will enhance the value of agricultural crop 
        or livestock commodities or by-products or waste from farming 
        operations through new and improved value-added conversion 
        processes and technologies, the development of more timely and 
        efficient infrastructure delivery systems, and the enhancement 
        of marketing opportunities.  "Rural economic infrastructure" 
        also means land, buildings, structures, fixtures, and 
        improvements located or to be located in Minnesota and used or 
        operated primarily for the processing or the support of 
        production of marketable products from agricultural commodities 
        or wind energy produced in Minnesota. 
           Sec. 70.  Minnesota Statutes 2004, section 41A.09, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [ETHANOL PRODUCER PAYMENTS.] (a) The 
        commissioner shall make cash payments to producers of ethanol 
        located in the state that have begun production at a specific 
        location by June 30, 2000.  For the purpose of this subdivision, 
        an entity that holds a controlling interest in more than one 
        ethanol plant is considered a single producer.  The amount of 
        the payment for each producer's annual production, except as 
        provided in paragraph (c), is 20 cents per gallon for each 
        gallon of ethanol produced at a specific location on or before 
        June 30, 2000, or ten years after the start of production, 
        whichever is later.  Annually, within 90 days of the end of its 
        fiscal year, an ethanol producer receiving payments under this 
        subdivision must file a disclosure statement on a form provided 
        by the commissioner.  The initial disclosure statement must 
        include a summary description of the organization of the 
        business structure of the claimant, a listing of the percentages 
        of ownership by any person or other entity with an ownership 
        interest of five percent or greater, and a copy of its annual 
        audited financial statements, including the auditor's report and 
        footnotes.  The disclosure statement must include information 
        demonstrating what percentage of the entity receiving payments 
        under this section is owned by farmers or other entities 
        eligible to farm or own agricultural land in Minnesota under the 
        provisions of section 500.24.  Subsequent annual reports must 
        reflect noncumulative changes in ownership of ten percent or 
        more of the entity.  The report need not disclose the identity 
        of the persons or entities eligible to farm or own agricultural 
        land with ownership interests, individuals residing within 30 
        miles of the plant, or of any other entity with less than ten 
        percent ownership interest, but the claimant must retain 
        information within its files confirming the accuracy of the data 
        provided.  This data must be made available to the commissioner 
        upon request.  Not later than the 15th day of February in each 
        year the commissioner shall deliver to the chairs of the 
        standing committees of the senate and the house of 
        representatives that deal with agricultural policy and 
        agricultural finance issues an annual report summarizing 
        aggregated data from plants receiving payments under this 
        section during the preceding calendar year.  Audited financial 
        statements and notes and disclosure statements submitted to the 
        commissioner are nonpublic data under section 13.02, subdivision 
        9.  Notwithstanding the provisions of chapter 13 relating to 
        nonpublic data, summaries of the submitted audited financial 
        reports and notes and disclosure statements will be contained in 
        the report to the committee chairs and will be public data.  
           (b) No payments shall be made for ethanol production that 
        occurs after June 30, 2010.  A producer of ethanol shall not 
        transfer the producer's eligibility for payments under this 
        section to an ethanol plant at a different location. 
           (c) If the level of production at an ethanol plant 
        increases due to an increase in the production capacity of the 
        plant, the payment under paragraph (a) applies to the additional 
        increment of production until ten years after the increased 
        production began.  Once a plant's production capacity reaches 
        15,000,000 gallons per year, no additional increment will 
        qualify for the payment. 
           (d) Total payments under paragraphs (a) and (c) to a 
        producer in a fiscal year may not exceed $3,000,000. 
           (e) By the last day of October, January, April, and July, 
        each producer shall file a claim for payment for ethanol 
        production during the preceding three calendar months.  A 
        producer that files a claim under this subdivision shall include 
        a statement of the producer's total ethanol production in 
        Minnesota during the quarter covered by the claim.  For each 
        claim and statement of total ethanol production filed under this 
        subdivision, the volume of ethanol production must be examined 
        by an independent certified public accountant in accordance with 
        standards established by the American Institute of Certified 
        Public Accountants. 
           (f) Payments shall be made November 15, February 15, May 
        15, and August 15.  A separate payment shall be made for each 
        claim filed.  Except as provided in paragraph (g), the total 
        quarterly payment to a producer under this paragraph may not 
        exceed $750,000.  
           (g) Notwithstanding the quarterly payment limits of 
        paragraph (f), the commissioner shall make an additional payment 
        in the fourth quarter of each fiscal year to ethanol producers 
        for the lesser of:  (1) 20 cents per gallon of production in the 
        fourth quarter of the year that is greater than 3,750,000 
        gallons; or (2) the total amount of payments lost during the 
        first three quarters of the fiscal year due to plant outages, 
        repair, or major maintenance.  Total payments to an ethanol 
        producer in a fiscal year, including any payment under this 
        paragraph, must not exceed the total amount the producer is 
        eligible to receive based on the producer's approved production 
        capacity.  The provisions of this paragraph apply only to 
        production losses that occur in quarters beginning after 
        December 31, 1999. 
           (h) The commissioner shall reimburse ethanol producers for 
        any deficiency in payments during earlier quarters if the 
        deficiency occurred because of unallotment or because 
        appropriated money was insufficient to make timely payments in 
        the full amount provided in paragraph (a).  Notwithstanding the 
        quarterly or annual payment limitations in this subdivision, the 
        commissioner shall begin making payments for earlier 
        deficiencies in each fiscal year that appropriations for ethanol 
        payments exceed the amount required to make eligible scheduled 
        payments.  Payments for earlier deficiencies must continue until 
        the deficiencies for each producer are paid in full. 
           (i) The commissioner may make direct payments to producers 
        of rural economic infrastructure with any amount of the annual 
        appropriation for ethanol producer payments and rural economic 
        infrastructure that is in excess of the amount required to make 
        scheduled ethanol producer payments and deficiency payments 
        under paragraphs (a) to (h). 
           Sec. 71.  Minnesota Statutes 2004, section 41A.09, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [MOTOR VEHICLES; ETHANOL COMBUSTION EFFICIENCY 
        GRANTS.] From within the appropriation for each fiscal year to 
        the ethanol development program under this section, or from 
        other appropriated money, the commissioner shall make up to two 
        grants, each in an amount not exceeding $50,000, to qualified 
        applicants proposing to do research on, but not limited to, 
        ethanol's effect on fuel system materials compatibility and ways 
        to improve the energy efficiency of ethanol fuel blends in motor 
        vehicles while meeting all requirements for control of tailpipe 
        emissions.  A grant recipient may receive funding for no more 
        than two consecutive years.  A research project must be matched 
        by $2 of nonstate money for each $3 of state grant money. 
           Sec. 72.  Minnesota Statutes 2004, section 41A.09, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [GUIDELINES.] The commissioner shall establish 
        guidelines not subject to chapter 14 for the submission and 
        review of applications and the awarding of grants under 
        subdivision 9. 
           Sec. 73.  Minnesota Statutes 2004, section 41B.046, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LOANS.] (a) The authority may participate in a 
        stock loan with an eligible lender to a farmer who is eligible 
        under subdivision 4.  Participation is limited to 45 percent of 
        the principal amount of the loan or $40,000, whichever is less.  
        The interest rates and repayment terms of the authority's 
        participation interest may differ from the interest rates and 
        repayment terms of the lender's retained portion of the loan, 
        but the authority's interest rate must not exceed 50 percent of 
        the lender's interest rate. 
           (b) No more than 95 percent of the purchase price of the 
        stock may be financed under this program. 
           (c) Security for stock loans must be the stock purchased, a 
        personal note executed by the borrower, and whatever other 
        security is required by the eligible lender or the authority. 
           (d) The authority may impose a reasonable nonrefundable 
        application fee for each application for a stock loan.  The 
        authority may review the fee annually and make adjustments as 
        necessary.  The application fee is initially $50.  Application 
        fees received by the authority must be deposited in the 
        value-added agricultural product revolving fund revolving loan 
        account established in section 41B.06. 
           (e) Stock loans under this program will be made using money 
        in the value-added agricultural product revolving fund loan 
        account established under subdivision 3 in section 41B.06. 
           (f) The authority may not grant stock loans in a cumulative 
        amount exceeding $2,000,000 for the financing of stock purchases 
        in any one cooperative. 
           (g) Repayments of financial assistance under this section, 
        including principal and interest, must be deposited into the 
        revolving loan account established in section 41B.06. 
           Sec. 74.  Minnesota Statutes 2004, section 41B.049, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REVOLVING FUND DEPOSIT OF REPAYMENTS.] There is 
        established in the state treasury a revolving fund, which is 
        eligible to receive appropriations and the transfer of funds 
        from other services.  All repayments of financial assistance 
        granted under subdivision 1, including principal and interest, 
        must be deposited into this fund.  Interest earned on money in 
        the fund accrues to the fund, and money in the fund is 
        appropriated to the commissioner of agriculture for purposes of 
        the manure digester loan program, including costs incurred by 
        the authority to establish and administer the program the 
        revolving loan account established in section 41B.06. 
           Sec. 75.  Minnesota Statutes 2004, section 41B.049, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LOANS.] (a) The authority may make a direct loan 
        or participate in a loan with an eligible lender to a farmer who 
        is eligible under subdivision 3.  The interest rates and 
        Repayment terms of the authority's participation interest may 
        differ from the interest rates and repayment terms of the 
        lender's retained portion of the loan.  The authority's interest 
        rate for a direct loan or a loan participation must not exceed 
        four percent.  Loans made under this section before July 1, 
        2003, must be no-interest loans.  
           (b) Application for a direct loan or a loan participation 
        must be made on forms prescribed by the authority. 
           (c) Standards for loan amortization shall be set by the 
        Rural Finance Authority not to exceed ten years. 
           (d) Security for the loans must be a personal note executed 
        by the borrower and whatever other security is required by the 
        eligible lender or the authority. 
           (e) No loan proceeds may be used to refinance a debt 
        existing prior to application. 
           (f) The authority may impose a reasonable nonrefundable 
        application fee for each application for a direct loan or a loan 
        participation.  The authority may review the application fees 
        annually and make adjustments as necessary.  The application fee 
        is initially set at $100 for a loan under subdivision 1.  The 
        fees received by the authority must be deposited in the 
        revolving fund created in subdivision 2 loan account established 
        in section 41B.06. 
           [EFFECTIVE DATE.] This section is effective retroactively 
        for any loan made on or after July 1, 2003. 
           Sec. 76.  [41B.055] [LIVESTOCK EQUIPMENT PILOT LOAN 
        PROGRAM.] 
           Subdivision 1.  [ESTABLISHMENT.] The authority must 
        establish and implement a livestock equipment pilot loan program 
        to help finance the first purchase of livestock-related 
        equipment and make livestock facilities improvements. 
           Subd. 2.  [ELIGIBILITY.] Notwithstanding section 41B.03, to 
        be eligible for this program a borrower must: 
           (1) be a resident of Minnesota or general partnership or a 
        family farm corporation, authorized farm corporation, family 
        farm partnership, or authorized farm partnership as defined in 
        section 500.24, subdivision 2; 
           (2) be the principal operator of a livestock farm; 
           (3) have a total net worth, including assets and 
        liabilities of the borrower's spouse and dependents, no greater 
        than the amount stipulated in section 41B.03, subdivision 3; 
           (4) demonstrate an ability to repay the loan; and 
           (5) hold an appropriate feedlot registration or be using 
        the loan under this program to meet registration requirements.  
        In addition to the requirements in clauses (1) to (5), 
        preference must be given to applicants who have farmed less than 
        ten years as evidenced by their filing of schedule F in their 
        federal tax returns. 
           Subd. 3.  [LOANS.] (a) The authority may participate in a 
        livestock equipment loan equal to 90 percent of the purchased 
        equipment value with an eligible lender to a farmer who is 
        eligible under subdivision 2.  Participation is limited to 45 
        percent of the principal amount of the loan or $40,000, 
        whichever is less.  The interest rates and repayment terms of 
        the authority's participation interest may differ from the 
        interest rates and repayment terms of the lender's retained 
        portion of the loan, but the authority's interest rate must not 
        exceed three percent.  The authority may review the interest 
        annually and make adjustments as necessary. 
           (b) Standards for loan amortization must be set by the 
        rural finance authority and must not exceed seven years. 
           (c) Security for a livestock equipment loan must be a 
        personal note executed by the borrower and whatever other 
        security is required by the eligible lender or the authority. 
           (d) Refinancing of existing debt is not an eligible purpose.
           (e) The authority may impose a reasonable, nonrefundable 
        application fee for a livestock equipment loan.  The authority 
        may review the fee annually and make adjustments as necessary.  
        The initial application fee is $50.  Application fees received 
        by the authority must be deposited in the revolving loan account 
        established in section 41B.06. 
           (f) Loans under this program must be made using money in 
        the revolving loan account established in section 41B.06. 
           Subd. 4.  [ELIGIBLE EXPENDITURES.] Money may be used for 
        loans for the acquisition of equipment for animal housing, 
        confinement, animal feeding, milk production, and waste 
        management, including the following, if related to animal 
        husbandry: 
           (1) fences; 
           (2) watering facilities; 
           (3) feed storage and handling equipment; 
           (4) milking parlors; 
           (5) milking equipment; 
           (6) scales; 
           (7) milk storage and cooling facilities; 
           (8) manure pumping and storage facilities; and 
           (9) capital investment in pasture.  
           Sec. 77.  [41B.06] [RURAL FINANCE AUTHORITY REVOLVING LOAN 
        ACCOUNT.] 
           There is established in the rural finance administration 
        fund a rural finance authority revolving loan account that is 
        eligible to receive appropriations and the transfer of loan 
        funds from other programs.  All repayments of financial 
        assistance granted from this account, including principal and 
        interest, must be deposited into this account.  Interest earned 
        on money in the account accrues to the account, and the money in 
        the account is appropriated to the commissioner of agriculture 
        for purposes of the rural finance authority livestock equipment, 
        methane digester, and value-added agricultural product loan 
        programs, including costs incurred by the authority to establish 
        and administer the programs. 
           Sec. 78.  Minnesota Statutes 2004, section 116.07, 
        subdivision 7a, is amended to read: 
           Subd. 7a.  [NOTICE OF APPLICATION FOR LIVESTOCK FEEDLOT 
        PERMIT.] (a) A person who applies to the Pollution Control 
        Agency or a county board for a permit to construct or expand a 
        feedlot with a capacity of 500 animal units or more shall, not 
        less than 20 business days before the date on which a permit is 
        issued, provide notice to each resident and each owner of real 
        property within 5,000 feet of the perimeter of the proposed 
        feedlot.  The notice may be delivered by first class mail, in 
        person, or by the publication in a newspaper of general 
        circulation within the affected area and must include 
        information on the type of livestock and the proposed capacity 
        of the feedlot.  Notification under this subdivision is 
        satisfied under an equal or greater notification requirement of 
        a county conditional use or town permit process.  A person must 
        also send a copy of the notice by first class mail to the clerk 
        of the town in which the feedlot is proposed not less than 20 
        business days before the date on which a permit is issued.  
           (b) The agency or a county board must verify that notice 
        was provided as required under paragraph (a) prior to issuing a 
        permit. 
           Sec. 79.  Minnesota Statutes 2004, section 116O.09, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [BOARD OF DIRECTORS.] The board of directors of 
        the Agricultural Utilization Research Institute is comprised of: 
           (1) the chairs of the senate and the house of 
        representatives standing committees with jurisdiction over 
        agriculture finance or the chair's designee; 
           (2) two representatives of statewide farm organizations; 
           (3) two representatives of agribusiness; and 
           (4) three representatives of the commodity promotion 
        councils. 
           A member of the board of directors under clauses (2) to 
        (4), including a member serving on July 1, 2003, may serve for a 
        maximum of two three-year terms.  The board's compensation is 
        governed by section 15.0575, subdivision 3. 
           Sec. 80.  [156.075] [REQUIREMENT FOR EQUINE TEETH 
        FLOATERS.] 
           Subdivision 1.  [DEFINITIONS.] For purposes of this section 
        the following terms have the meanings given them. 
           (a) "Equine teeth floating" means: 
           (1) removal of enamel points from teeth with handheld, 
        nonmotorized, non-air-powered files or rasps; 
           (2) reestablishing normal molar table angles and freeing up 
        lateral excursion and other normal movements of the mandible; 
           (3) shaping the lingual aspect of the lower arcades and the 
        buccal aspect of the upper arcades to a rounded smooth surface; 
        and 
           (4) removing points from the buccal aspect of the upper 
        arcade and the lingual aspect of the lower arcade. 
           (b) "Indirect supervision" means a veterinarian must be 
        available by telephone or other form of immediate 
        communication.  The veterinarian must be currently licensed 
        under this chapter. 
           Subd. 2.  [EQUINE TEETH FLOATING SERVICES.] (a) A person 
        may perform equine teeth floating services after submitting to 
        the board the following: 
           (1) proof of current certification from the International 
        Association of Equine Dentistry or other professional equine 
        dentistry association as determined by the board; and 
           (2) a written statement signed by a supervising 
        veterinarian experienced in large animal medicine that the 
        applicant will be under direct or indirect supervision of the 
        veterinarian when floating equine teeth. 
           (b) The board must waive the requirement in paragraph (a), 
        clause (1), and allow a person to perform equine teeth floating 
        services if the person provides satisfactory evidence of being 
        actively engaged in equine teeth floating for at least ten of 
        the past 15 years and has generated at least $5,000 annually in 
        personal income from this activity. 
           Sec. 81.  Minnesota Statutes 2004, section 168.27, is 
        amended by adding a subdivision to read: 
           Subd. 29.  [FLEXIBLE FUEL VEHICLE NOTICE.] At the time a 
        dealer delivers a flexible fuel vehicle, the dealer must provide 
        written notice to the consumer that the vehicle is capable of 
        using alternative fuels, including E85 fuel. 
           Sec. 82.  Minnesota Statutes 2004, section 169.87, 
        subdivision 4, is amended to read: 
           Subd. 4.  [VEHICLE TRANSPORTING MILK.] Until June 1, 
        2003 2007, a weight restriction imposed under subdivision 1 by 
        the commissioner of transportation or a local road authority, or 
        imposed by subdivision 2, does not apply to a vehicle 
        transporting milk from the point of production to the point of 
        first processing if, at the time the weight restriction is 
        exceeded, the vehicle is carrying milk loaded at only one point 
        of production.  This subdivision does not authorize a vehicle 
        described in this subdivision to exceed a weight restriction of 
        five tons per axle by more than two tons per axle. 
           [EFFECTIVE DATE.] This section is effective July 1, 2005. 
           Sec. 83.  Minnesota Statutes 2004, section 174.52, 
        subdivision 5, is amended to read: 
           Subd. 5.  [GRANT PROCEDURES AND CRITERIA.] The commissioner 
        shall establish procedures for statutory or home rule charter 
        cities, towns, and counties to apply for grants or loans from 
        the fund and criteria to be used to select projects for funding. 
        The commissioner shall establish these procedures and criteria 
        in consultation with representatives appointed by the 
        Association of Minnesota Counties, League of Minnesota 
        Cities, and Minnesota Township Officers Association Association 
        of Townships, and the appropriate state agency as needed.  The 
        criteria for determining project priority and the amount of a 
        grant or loan must be based upon consideration of: 
           (1) the availability of other state, federal, and local 
        funds; 
           (2) the regional significance of the route; 
           (3) effectiveness of the proposed project in eliminating a 
        transportation system deficiency; 
           (4) the number of persons who will be positively impacted 
        by the project; 
           (5) the project's contribution to other local, regional, or 
        state economic development or redevelopment efforts including 
        livestock and other agricultural operations permitted after the 
        effective date of this section; and 
           (6) ability of the local unit of government to adequately 
        provide for the safe operation and maintenance of the facility 
        upon project completion. 
           Sec. 84.  Minnesota Statutes 2004, section 223.17, 
        subdivision 3, is amended to read: 
           Subd. 3.  [GRAIN BUYERS AND STORAGE ACCOUNT; FEES.] The 
        commissioner shall set the fees for inspections under sections 
        223.15 to 223.22 at levels necessary to pay the expenses of 
        administering and enforcing sections 223.15 to 223.22.  
           The fee for any license issued or renewed after June 30, 
        2001 2005, shall be set according to the following schedule: 
           (a) $125 $140 plus $100 $110 for each additional location 
        for grain buyers whose gross annual purchases are less than 
        $100,000; 
           (b) $250 $275 plus $100 $110 for each additional location 
        for grain buyers whose gross annual purchases are at least 
        $100,000, but not more than $750,000; 
           (c) $375 $415 plus $200 $220 for each additional location 
        for grain buyers whose gross annual purchases are more than 
        $750,000 but not more than $1,500,000; 
           (d) $500 $550 plus $200 $220 for each additional location 
        for grain buyers whose gross annual purchases are more than 
        $1,500,000 but not more than $3,000,000; and 
           (e) $625 $700 plus $200 $220 for each additional location 
        for grain buyers whose gross annual purchases are more than 
        $3,000,000.  
           A penalty amount not to exceed ten percent of the fees due 
        may be imposed by the commissioner for each month for which the 
        fees are delinquent. 
           There is created the grain buyers and storage account in 
        the agricultural fund.  Money collected pursuant to sections 
        223.15 to 223.19 shall be paid into the state treasury and 
        credited to the grain buyers and storage account and is 
        appropriated to the commissioner for the administration and 
        enforcement of sections 223.15 to 223.22. 
           Sec. 85.  Minnesota Statutes 2004, section 223.17, 
        subdivision 6, is amended to read: 
           Subd. 6.  [FINANCIAL STATEMENTS.] For the purpose of fixing 
        or changing the amount of a required bond or for any other 
        proper reason, the commissioner shall require an annual 
        financial statement from a licensee which has been prepared in 
        accordance with generally accepted accounting principles and 
        which meets the following requirements:  
           (a) The financial statement shall include, but not be 
        limited to the following:  (1) a balance sheet; (2) a statement 
        of income (profit and loss); (3) a statement of retained 
        earnings; (4) a statement of changes in financial position; and 
        (5) a statement of the dollar amount of grain purchased in the 
        previous fiscal year of the grain buyer.  
           (b) The financial statement shall be accompanied by a 
        reviewed financial statement or audit prepared by an independent 
        public accountant or a compilation report prepared by a grain 
        commission firm approved by the commissioner, in accordance with 
        standards established by the American Institute of Certified 
        Public Accountants.  Grain buyers purchasing less than 150,000 
        bushels of grain per calendar year may submit a financial 
        statement prepared by a public accountant who is not an employee 
        or a relative within the third degree of kindred according to 
        civil law. 
           (c) The financial statement shall be accompanied by a 
        certification by the chief executive officer or the chief 
        executive officer's designee of the licensee, under penalty of 
        perjury, that the financial statement accurately reflects the 
        financial condition of the licensee for the period specified in 
        the statement. 
           Only one financial statement must be filed for a chain of 
        warehouses owned or operated as a single business entity, unless 
        otherwise required by the commissioner.  Any grain buyer having 
        a net worth in excess of $500,000,000 need not file the 
        financial statement required by this subdivision but must 
        provide the commissioner with a certified net worth statement. 
        All financial statements filed with the commissioner are private 
        or nonpublic data as provided in section 13.02. 
           Sec. 86.  Minnesota Statutes 2004, section 231.16, is 
        amended to read: 
           231.16 [WAREHOUSE OPERATOR OR HOUSEHOLD GOODS WAREHOUSE 
        OPERATOR TO OBTAIN LICENSE.] 
           A warehouse operator or household goods warehouse operator 
        must be licensed annually by the department.  The department 
        shall prescribe the form of the written application.  If the 
        department approves the license application and the applicant 
        files with the department the necessary bond, in the case of 
        household goods warehouse operators, or proof of warehouse 
        operators legal liability insurance coverage in an amount of 
        $50,000 or more, as provided for in this chapter, the department 
        shall issue the license upon payment of the license fee required 
        in this section.  A warehouse operator or household goods 
        warehouse operator to whom a license is issued shall pay a fee 
        as follows:  
                Building square footage used for public storage 
                    (1) 5,000 or less                $100 $110
                    (2) 5,001 to 10,000              $200 $220 
                    (3) 10,001 to 20,000             $300 $330 
                    (4) 20,001 to 100,000            $400 $440
                    (5) 100,001 to 200,000           $500 $550
                    (6) over 200,000                 $600 $660
           A penalty amount not to exceed ten percent of the fees due 
        may be imposed by the commissioner for each month for which the 
        fees are delinquent. 
           Fees collected under this chapter must be paid into the 
        grain buyers and storage account established in section 232.22. 
           The license must be renewed annually on or before July 1, 
        and always upon payment of the full license fee required in this 
        section.  No license shall be issued for any portion of a year 
        for less than the full amount of the license fee required in 
        this section.  Each license obtained under this chapter must be 
        publicly displayed in the main office of the place of business 
        of the warehouse operator or household goods warehouse operator 
        to whom it is issued.  The license authorizes the warehouse 
        operator or household goods warehouse operator to carry on the 
        business of warehousing only in the one city or town named in 
        the application and in the buildings therein described.  The 
        department, without requiring an additional bond and license, 
        may issue permits from time to time to any warehouse operator 
        already duly licensed under the provisions of this chapter to 
        operate an additional warehouse in the same city or town for 
        which the original license was issued during the term thereof, 
        upon the filing an application for a permit in the form 
        prescribed by the department. 
           A license may be refused for good cause shown and revoked 
        by the department for violation of law or of any rule adopted by 
        the department, upon notice and after hearing. 
           Sec. 87.  Minnesota Statutes 2004, section 232.22, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FEES; GRAIN BUYERS AND STORAGE ACCOUNT.] There 
        is created in the agricultural fund an account known as the 
        grain buyers and storage account.  The commissioner shall set 
        the fees for inspections, certifications and licenses under 
        sections 232.20 to 232.25 at levels necessary to pay the costs 
        of administering and enforcing sections 232.20 to 232.25.  All 
        money collected pursuant to sections 232.20 to 232.25 and 
        chapters 233 and 236 shall be paid by the commissioner into the 
        state treasury and credited to the grain buyers and storage 
        account and is appropriated to the commissioner for the 
        administration and enforcement of sections 232.20 to 232.25 and 
        chapters 233 and 236.  All money collected pursuant to chapter 
        231 shall be paid by the commissioner into the grain buyers and 
        storage account and is appropriated to the commissioner for the 
        administration and enforcement of chapter 231.  
           The fees for a license to store grain are as follows: 
           (a) For a license to store grain, $110 for each home rule 
        charter or statutory city or town in which a public grain 
        warehouse is operated. 
           (b) A person with a license to store grain in a public 
        grain warehouse is subject to an examination fee for each 
        licensed location, based on the following schedule for one 
        examination: 
             Bushel Capacity            Examination Fee 
             Less than 150,001                  $300
             150,001 to 250,000                 $425
             250,001 to 500,000                 $545
             500,001 to 750,000                 $700
             750,001 to 1,000,000               $865
             1,000,001 to 1,200,000             $1,040
             1,200,001 to 1,500,000             $1,205
             1,500,001 to 2,000,000             $1,380
             More than 2,000,000                $1,555
           (c) The fee for the second examination is $55 per hour per 
        examiner for warehouse operators who choose to have it performed 
        by the commissioner. 
           (d) A penalty amount not to exceed ten percent of the fees 
        due may be imposed by the commissioner for each month for which 
        the fees are delinquent. 
           Sec. 88.  Minnesota Statutes 2004, section 236.02, 
        subdivision 4, is amended to read: 
           Subd. 4.  [FEES.] The license fee is $140 for each home 
        rule charter or statutory city or town in which a private grain 
        warehouse is operated and which will be used to operate a grain 
        bank.  A penalty amount not to exceed ten percent of the fees 
        due may be imposed by the commissioner for each month for which 
        the fees are delinquent.  The license fee must be set by the 
        commissioner in an amount sufficient to cover the costs of 
        administering and enforcing this chapter.  Fees collected under 
        this chapter must be paid into the grain buyers and storage 
        account established in section 232.22. 
           Sec. 89.  Minnesota Statutes 2004, section 327.23, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MANUFACTURED HOME PARK.] (a) The term 
        "manufactured home park" shall not be construed to include: 
           (1) manufactured homes, buildings, tents or other 
        structures temporarily maintained by any individual or company 
        on premises associated with a work project and used exclusively 
        to house labor or other personnel occupied in such work project; 
        or 
           (2) two or fewer manufactured homes maintained by an 
        individual or company on premises associated with an 
        agricultural operation in an area zoned agricultural, provided 
        the homes: 
           (i) are located within 100 yards of an existing residence 
        on those premises; 
           (ii) are used exclusively to house either family of the 
        individual, at least one of whose members is engaged in 
        agricultural work on the premises, or agricultural labor as 
        defined in section 3121(g) of the Internal Revenue Code; and 
           (iii) meet the requirements of sections 327.31 to 327.35, 
        and Minnesota Rules, chapter 1350, and parts 4630.0600, subpart 
        1; 4630.0700; 4630.1200; 4630.3500; and 4715.0310.  
           (b) The state Department of Health may by rule prescribe 
        such sanitary facilities as it may deem necessary to provide for 
        the sanitation of such structures and the safety of the 
        occupants thereof. 
           Sec. 90.  Minnesota Statutes 2004, section 394.25, 
        subdivision 3c, is amended to read: 
           Subd. 3c.  [FEEDLOT ZONING ORDINANCES.] (a) A county 
        proposing to adopt a new feedlot ordinance or amend an existing 
        feedlot ordinance must notify the Pollution Control Agency and 
        commissioner of agriculture at the beginning of the process, no 
        later than the notice of the first hearing proposing to adopt or 
        amend an ordinance purporting to address feedlots. 
           (b) Prior to final approval of a feedlot ordinance, a 
        county board may submit a copy of the proposed ordinance to the 
        Pollution Control Agency and to the commissioner of agriculture 
        and request review, comment, and preparation of recommendations 
        on the environmental and agricultural effects from specific 
        provisions in the ordinance. 
           (c) The agencies' response to the county may include: 
           (1) any recommendations for improvements in the ordinance; 
        and 
           (2) the legal, social, economic, or scientific 
        justification for each recommendation under clause (1). 
           (d) At the request of the county board, the county must 
        prepare a report on the environmental and agricultural economic 
        effects from specific provisions in the ordinance.  Economic 
        analysis must state whether the ordinance will affect the local 
        economy and describe the kinds of businesses affected and the 
        projected impact the proposal will have on those businesses.  To 
        assist the county, the commissioner of agriculture, in 
        cooperation with the Department of Employment and Economic 
        Development, must develop a template for measuring local 
        economic effects and make it available to the county.  The 
        report must be submitted to the commissioners of employment and 
        economic development and agriculture along with the proposed 
        ordinance. 
           (c) The report may include: 
           (1) any recommendations for improvements in the ordinance; 
        and 
           (2) the legal, social, economic, or scientific 
        justification for each recommendation under clause (1). 
           (d) (e) A local ordinance that contains a setback for new 
        feedlots from existing residences must also provide for a new 
        residence setback from existing feedlots located in areas zoned 
        agricultural at the same distances and conditions specified in 
        the setback for new feedlots, unless the new residence is built 
        to replace an existing residence.  A county may grant a variance 
        from this requirement under section 394.27, subdivision 7. 
           Sec. 91.  Minnesota Statutes 2004, section 462.355, 
        subdivision 4, as amended by Laws 2005, chapter 41, section 17, 
        is amended to read: 
           Subd. 4.  [INTERIM ORDINANCE.] (a) If a municipality is 
        conducting studies or has authorized a study to be conducted or 
        has held or has scheduled a hearing for the purpose of 
        considering adoption or amendment of a comprehensive plan or 
        official controls as defined in section 462.352, subdivision 15, 
        or if new territory for which plans or controls have not been 
        adopted is annexed to a municipality, the governing body of the 
        municipality may adopt an interim ordinance applicable to all or 
        part of its jurisdiction for the purpose of protecting the 
        planning process and the health, safety and welfare of its 
        citizens.  The interim ordinance may regulate, restrict, or 
        prohibit any use, development, or subdivision within the 
        jurisdiction or a portion thereof for a period not to exceed one 
        year from the date it is effective.  
           (b) If a proposed interim ordinance purports to regulate, 
        restrict, or prohibit activities relating to livestock 
        production, a public hearing must be held following a ten-day 
        notice given by publication in a newspaper of general 
        circulation in the municipality before the interim ordinance 
        takes effect.  
           (c) The period of an interim ordinance applicable to an 
        area that is affected by a city's master plan for a municipal 
        airport may be extended for such additional periods as the 
        municipality may deem appropriate, not exceeding a total 
        additional period of 18 months.  In all other cases, no interim 
        ordinance may halt, delay, or impede a subdivision that has been 
        given preliminary approval, nor may any interim ordinance extend 
        the time deadline for agency action set forth in section 15.99 
        with respect to any application filed prior to the effective 
        date of the interim ordinance.  The governing body of the 
        municipality may extend the interim ordinance after a public 
        hearing and written findings have been adopted based upon one or 
        more of the conditions in clause (1), (2), or (3).  The public 
        hearing must be held at least 15 days but not more than 30 days 
        before the expiration of the interim ordinance, and notice of 
        the hearing must be published at least ten days before the 
        hearing.  The interim ordinance may be extended for the 
        following conditions and durations, but, except as provided in 
        clause (3), an interim ordinance may not be extended more than 
        an additional 18 months: 
           (1) up to an additional 120 days following the receipt of 
        the final approval or review by a federal, state, or 
        metropolitan agency when the approval is required by law and the 
        review or approval has not been completed and received by the 
        municipality at least 30 days before the expiration of the 
        interim ordinance; 
           (2) up to an additional 120 days following the completion 
        of any other process required by a state statute, federal law, 
        or court order, when the process is not completed at least 30 
        days before the expiration of the interim ordinance; or 
           (3) up to an additional one year if the municipality has 
        not adopted a comprehensive plan under this section at the time 
        the interim ordinance is enacted. 
           Sec. 92.  Minnesota Statutes 2004, section 462.357, is 
        amended by adding a subdivision to read: 
           Subd. 1g.  [FEEDLOT ZONING CONTROLS.] (a) A municipality 
        proposing to adopt a new feedlot zoning control or to amend an 
        existing feedlot zoning control must notify the Pollution 
        Control Agency and commissioner of agriculture at the beginning 
        of the process, no later than the date notice is given of the 
        first hearing proposing to adopt or amend a zoning control 
        purporting to address feedlots. 
           (b) Prior to final approval of a feedlot zoning control, 
        the governing body of a municipality may submit a copy of the 
        proposed zoning control to the Pollution Control Agency and to 
        the commissioner of agriculture and request review, comment, and 
        recommendations on the environmental and agricultural effects 
        from specific provisions in the ordinance. 
           (c) The agencies' response to the municipality may include: 
           (1) any recommendations for improvements in the ordinance; 
        and 
           (2) the legal, social, economic, or scientific 
        justification for each recommendation under clause (1).  
           (d) At the request of the municipality's governing body, 
        the municipality must prepare a report on the economic effects 
        from specific provisions in the ordinance.  Economic analysis 
        must state whether the ordinance will affect the local economy 
        and describe the kinds of businesses affected and the projected 
        impact the proposal will have on those businesses.  To assist 
        the municipality, the commissioner of agriculture, in 
        cooperation with the Department of Employment and Economic 
        Development, must develop a template for measuring local 
        economic effects and make it available to the municipality.  The 
        report must be submitted to the commissioners of employment and 
        economic development and agriculture along with the proposed 
        ordinance. 
           (e) A local ordinance that contains a setback for new 
        feedlots from existing residences must also provide for a new 
        residence setback from existing feedlots located in areas zoned 
        agricultural at the same distances and conditions specified in 
        the setback for new feedlots, unless the new residence is built 
        to replace an existing residence.  A municipality may grant a 
        variance from this requirement under section 462.358, 
        subdivision 6. 
           Sec. 93.  [TRANSFER OF FUNDS; DEPOSIT OF REPAYMENTS.] 
           The remaining balances in the revolving accounts in 
        Minnesota Statutes, sections 41B.046 and 41B.049, that are 
        dedicated to rural finance authority loan programs under those 
        sections, are transferred to the revolving loan account 
        established in Minnesota Statutes, section 41B.06, on the 
        effective date of this section.  All future receipts from 
        value-added agricultural product loans and methane digester 
        loans originated under Minnesota Statutes, sections 41B.046 and 
        41B.049, must be deposited in the revolving loan account 
        established in Minnesota Statutes, section 41B.06. 
           Sec. 94.  [AGRICULTURAL NUTRIENT TASK FORCE.] 
           (a) There is created an Agricultural Nutrient Task Force 
        consisting of two members of the senate appointed by the chair 
        of the senate Committee on Agriculture, Veterans and Gaming; two 
        members of the house of representatives appointed by the chair 
        of the house Committee on Agriculture and Rural Development; the 
        commissioner of agriculture or the commissioner's designee; and 
        15 public members appointed by the commissioner.  The public 
        members must be broadly representative of the diverse range of 
        persons interested in and knowledgeable about agricultural soil 
        nutrients and must include representatives of agricultural crop 
        growers, fertilizer retailers, soil nutrient consultants, and 
        agricultural soil and nutrient researchers.  Public members of 
        the task force must serve without compensation or reimbursement 
        of personal expenses. 
           (b) The commissioner of agriculture must convene the first 
        meeting of the task force and must provide office support 
        services to the task force as needed.  The task force may 
        determine the date, location, and agenda of additional meetings. 
           (c) The task force must review and make recommendations on 
        at least the following topics and practices: 
           (1) the need for research, education, and training in the 
        selection and application of agricultural fertilizer and soil 
        nutrients in the state; 
           (2) the imposition of a tonnage fee on all agricultural 
        fertilizer applied in Minnesota and the designated uses of the 
        proceeds from the fee; 
           (3) the desirability of amending statutes and rules that 
        apply to the selection, purchase, storage, and application of 
        agricultural fertilizer and soil nutrients, including the 
        reasonableness of rules for their on-farm storage; and 
           (4) methods of inspection and monitoring for compliance 
        with fertilizer regulations to protect against the theft of 
        anhydrous ammonia for production of methamphetamine. 
           (d) On behalf of the task force, not later than February 
        15, 2006, the commissioner of agriculture shall prepare and 
        deliver to the standing agriculture policy committees of the 
        senate and the house of representatives a report and list of 
        recommendations for changes in statutes and rules. 
           (e) The task force expires June 30, 2006. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 95.  [STUDY; BIODIESEL FUEL FOR RESIDENTIAL, 
        COMMERCIAL, AND INDUSTRIAL HEATING.] 
           (a) From the money available to the commissioner of 
        commerce for purposes of studies and technical assistance by the 
        reliability administrator under Minnesota Statutes, section 
        216C.052, and in conformity with the goals and directives of 
        Minnesota Statutes, section 16B.325, the reliability 
        administrator shall perform a comprehensive technical and 
        economic analysis of the benefits to be derived from using 
        biodiesel fuel as defined in Minnesota Statutes, section 239.77, 
        subdivision 1, or biodiesel fuel blends, as a residential, 
        commercial, and industrial heating fuel.  The analysis must 
        consider blends ranging from B2 to B100.  No more than $25,000 
        may be expended for the analysis. 
           (b) Not later than March 15, 2007, the reliability 
        administrator shall report the results of the study and analysis 
        to the appropriate standing committees of the Minnesota senate 
        and house of representatives. 
           Sec. 96.  [CONTINUED SUPPORT FOR SUSTAINABLE AND ORGANIC 
        AGRICULTURE.] 
           The University of Minnesota is requested to continue 
        providing support for sustainable and organic agriculture 
        initiatives including, but not limited to, the alternative swine 
        systems program. 
           Sec. 97.  [REVISOR'S INSTRUCTION.] 
           The revisor of statutes shall change cross-references in 
        Minnesota Statutes and Minnesota Rules to reflect the amendments 
        and repealers in this act and Minnesota Statutes, sections 
        17.452, subdivision 5a; 35.153; and 35.155, as amended in this 
        article. 
           Sec. 98.  [REPEALER.] 
           (a) Minnesota Statutes 2004, section 41B.046, subdivision 
        3, is repealed effective the day following final enactment. 
           (b) Minnesota Statutes 2004, sections 18B.065, subdivision 
        5; and 19.64, subdivision 4a, are repealed. 
           (c) Minnesota Statutes 2004, section 18H.02, subdivisions 
        15 and 19, are repealed. 
           (d) Minnesota Statutes 2004, section 17.983, subdivision 2, 
        is repealed. 
           (e) Minnesota Statutes 2004, section 35.0661, subdivision 
        4, is repealed. 
           (f) Minnesota Statutes 2004, sections 17.451; and 17.452, 
        subdivisions 6, 6a, 7, 10, 11, 12, 13, 13a, 14, 15, and 16, are 
        repealed. 

                                   ARTICLE 2 
                       ENVIRONMENT AND NATURAL RESOURCES 
        Section 1.  [ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or another named fund, to 
        the agencies and for the purposes specified in this article, to 
        be available for the fiscal years indicated for each purpose.  
        The figures "2006" and "2007," where used in this article, mean 
        that the appropriation or appropriations listed under them are 
        available for the fiscal year ending June 30, 2006, or June 30, 
        2007, respectively.  The term "the first year" means the year 
        ending June 30, 2006, and the term "the second year" means the 
        year ending June 30, 2007. 
                                SUMMARY BY FUND
                                  2006          2007           TOTAL
        General            $  113,313,000 $  111,865,000 $  225,178,000
        State Government
        Special Revenue            48,000         48,000         96,000
        Environmental          56,031,000     56,338,000    112,369,000
        Natural Resources      68,443,000     68,671,000    137,114,000
        Game and Fish          86,928,000     87,773,000    174,701,000
        Remediation            11,504,000     11,504,000     23,008,000
        Permanent School          200,000        200,000        400,000
        State Land and Water Conservation
        Account (LAWCON)        1,600,000         -0-         1,600,000
        Environment and Natural Resources
        Trust Fund             18,829,000     18,829,000     37,658,000
        Great Lakes Protection
        Account                  28,000           -0-            28,000
        TOTAL              $  356,924,000 $  355,228,000 $  712,152,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2006         2007 
        Sec. 2.  POLLUTION CONTROL    
        AGENCY  
        Subdivision 1.  Total           
        Appropriation                     $   78,836,000 $  79,154,000
                      Summary by Fund
        General              11,353,000    11,364,000
        State Government 
        Special Revenue          48,000        48,000
        Environmental        56,031,000    56,338,000
        Remediation          11,404,000    11,404,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Water 
            25,428,000     25,439,000
                      Summary by Fund
        General               7,506,000     7,517,000
        State Government
        Special Revenue          48,000        48,000
        Environmental        17,874,000    17,874,000
        $2,348,000 the first year and 
        $2,348,000 the second year are for the 
        clean water partnership program.  Any 
        balance remaining in the first year 
        does not cancel and is available for 
        the second year.  This appropriation 
        may be used for grants to local units 
        of government for the purpose of 
        restoring impaired waters listed under 
        section 303(d) of the federal Clean 
        Water Act in accordance with adopted 
        total maximum daily loads (TMDLs), 
        including implementation of approved 
        clean water partnership diagnostic 
        study work plans that will assist in 
        restoration of such impaired waters. 
        $335,000 the first year and $335,000 
        the second year are for community 
        technical assistance and education, 
        including grants and technical 
        assistance to communities for local and 
        basinwide water quality protection. 
        $405,000 the first year and $405,000 
        the second year are for individual 
        sewage treatment system (ISTS) 
        administration and grants.  Of this 
        amount, $86,000 each year is for 
        assistance to counties through grants 
        for ISTS program administration.  Any 
        unexpended balance in the first year 
        does not cancel but is available in the 
        second year. 
        $480,000 the first year and $480,000 
        the second year are from the 
        environmental fund to address the need 
        for continued increased activity in the 
        areas of new technology review, 
        technical assistance for local 
        governments, and enforcement under 
        Minnesota Statutes, sections 115.55 to 
        115.58, and to complete the 
        requirements of Laws 2003, chapter 128, 
        article 1, sections 164 and 165.  Of 
        this amount, $48,000 each year is for 
        administration of individual septic 
        tank fees, as provided in Minnesota 
        Statutes, section 115.551. 
        $2,324,000 the first year and 
        $2,324,000 the second year must be 
        distributed as grants to delegated 
        counties to administer the county 
        feedlot program.  Distribution of the 
        funds must be conducted according to 
        the following three-part formula: 
        (1) Number of feedlots in the county:  
        60 percent of the total appropriation 
        must be distributed according to the 
        number of feedlots that are required to 
        be registered in the county.  Grants 
        awarded under this clause must be 
        matched with a combination of local 
        cash and in-kind contributions. 
        (2) Minimum program requirements:  25 
        percent of the total appropriation must 
        be distributed based on the county (i) 
        conducting an annual number of 
        inspections at feedlots that is equal 
        to or greater than seven percent of the 
        total number of registered feedlots 
        that are required to be registered in 
        the county; and (ii) meeting 
        noninspection minimum program 
        requirements as identified in the 
        county feedlot workplan form.  Counties 
        that do not meet the inspection 
        requirement must not receive 50 percent 
        of the eligible funding under this 
        clause.  Counties must receive funding 
        for noninspection requirements under 
        this clause according to a scoring 
        system checklist administered by the 
        department.  The commissioner, in 
        consultation with the Minnesota 
        Association of County Feedlot Officers 
        executive team, shall make a final 
        decision regarding any appeal by a 
        county regarding the terms and 
        conditions of this clause. 
        (3) Performance credits:  15 percent of 
        the total appropriation must be 
        distributed according to work that has 
        been done by the counties during the 
        fiscal year.  The amount must be 
        determined by the number of performance 
        credits a county accumulates during the 
        year based on a performance credit 
        matrix jointly agreed upon by the 
        commissioner in consultation with the 
        Minnesota Association of County Feedlot 
        Officers executive team.  To receive an 
        award under this clause the county must 
        meet the requirements of clause (2)(i) 
        and achieve 90 percent of the 
        requirements according to clause 
        (2)(ii) of the formula.  The rate of 
        reimbursement per performance credit 
        item must not exceed $200. 
        Delegated counties are eligible for a 
        minimum grant of $7,500.  To receive 
        the full $7,500 amount a county must 
        meet the requirements under clause (2) 
        of the formula.  Nondelegated counties 
        that apply for delegation shall receive 
        a grant prorated according to the 
        number of full quarters remaining in 
        the program year from the date of 
        commissioner approval of the 
        delegation.  Funds for awards to any 
        newly delegated counties must be made 
        out of the appropriation reserved for 
        clause (3) of the formula.  The 
        commissioner, in consultation with the 
        Minnesota Association of County Feedlot 
        Officers executive team, may decide to 
        use funds reserved for clause (3) of 
        the formula in an amount not to exceed 
        five percent of the total annual 
        appropriation for initiatives to 
        enhance existing delegated county 
        feedlot programs, information and 
        education, or technical assistance 
        efforts to reduce feedlot-related 
        pollution hazards.  Any funds remaining 
        after distribution under clauses (1) 
        and (2) of the formula must be 
        transferred to clause (3) of the 
        formula.  Any money remaining after the 
        first year is available for the second 
        year. 
        Notwithstanding Minnesota Statutes, 
        section 16A.28, the appropriations 
        encumbered under contract on or before 
        June 30, 2007, for clean water 
        partnership, individual sewage 
        treatment systems (ISTS), Minnesota 
        River, total maximum daily loads 
        (TMDLs), and local and basinwide water 
        quality protection grants in this 
        subdivision are available until June 
        30, 2009. 
        Subd. 3.  Air                 
             9,297,000      9,604,000 
                      Summary by Fund
        Environmental         9,297,000     9,604,000
        Up to $150,000 the first year and 
        $150,000 the second year may be 
        transferred to the environmental fund 
        for the small business environmental 
        improvement loan program established in 
        Minnesota Statutes, section 116.993. 
        $200,000 the first year and $200,000 
        the second year are from the 
        environmental fund for a monitoring 
        program under Minnesota Statutes, 
        section 116.454. 
        $125,000 the first year and $125,000 
        the second year are from the 
        environmental fund for monitoring 
        ambient air for hazardous pollutants in 
        the metropolitan area.  
        Subd. 4.  Land 
            18,469,000     18,469,000
                      Summary by Fund
        Environmental         7,065,000     7,065,000
        Remediation          11,404,000    11,404,000
        All money for environmental response, 
        compensation, and compliance in the 
        remediation fund not otherwise 
        appropriated is appropriated to the 
        commissioners of the Pollution Control 
        Agency and the Department of 
        Agriculture for purposes of Minnesota 
        Statutes, section 115B.20, subdivision 
        2, clauses (1), (2), (3), (6), and 
        (7).  At the beginning of each fiscal 
        year, the two commissioners shall 
        jointly submit an annual spending plan 
        to the commissioner of finance that 
        maximizes the utilization of resources 
        and appropriately allocates the money 
        between the two agencies.  This 
        appropriation is available until June 
        30, 2007. 
        $3,616,000 the first year and 
        $3,616,000 the second year are from the 
        petroleum tank fund to be transferred 
        to the remediation fund for purposes of 
        the leaking underground storage tank 
        program to protect the land. 
        $200,000 the first year and $200,000 
        the second year are from the 
        remediation fund to be transferred to 
        the Department of Health for private 
        water supply monitoring and health 
        assessment costs in areas contaminated 
        by unpermitted mixed municipal solid 
        waste disposal facilities. 
        In fiscal years 2006 and 2007, of the 
        money appropriated from the remediation 
        fund under Minnesota Statutes, section 
        116.155, subdivision 2, at least 
        $2,000,000 must be used for cleanup at 
        Valentine Clark and Reserve Mining.  
        Subd. 5.  Multimedia         
             4,305,000      4,305,000 
                      Summary by Fund
        General               2,264,000     2,264,000
        Environmental         2,041,000     2,041,000
        Subd. 6.  Environmental Assistance 
            19,754,000     19,754,000 
                      Summary by Fund
        Environmental        19,754,000    19,754,000
        $12,500,000 each year is from the 
        environmental fund for SCORE block 
        grants to counties.  
        Any unencumbered grant and loan 
        balances in the first year do not 
        cancel but are available for grants and 
        loans in the second year. 
        All money deposited in the 
        environmental fund for the metropolitan 
        solid waste landfill fee in accordance 
        with Minnesota Statutes, section 
        473.843, and not otherwise 
        appropriated, is appropriated for the 
        purposes of Minnesota Statutes, section 
        473.844. 
        $119,000 the first year and $119,000 
        the second year are for environmental 
        assistance grants or loans under 
        Minnesota Statutes, section 115A.0716. 
        Notwithstanding Minnesota Statutes, 
        section 16A.28, the appropriations 
        encumbered under contract on or before 
        June 30, 2007, for environmental 
        assistance grants awarded under 
        Minnesota Statutes, section 115A.0716, 
        and for technical and research 
        assistance under Minnesota Statutes, 
        section 115A.152, technical assistance 
        under Minnesota Statutes, section 
        115A.52, and pollution prevention 
        assistance under Minnesota Statutes, 
        section 115D.04, are available until 
        June 30, 2009.  
        Subd. 7.  Administrative Support                                
             1,583,000      1,583,000 
                      Summary by Fund
        General               1,583,000     1,583,000
        By December 1, 2005, the commissioner 
        shall submit a report to the 
        Environment and Natural Resources 
        Policy and Finance Committees of the 
        house and senate that provides a 
        benchmarking matrix and analysis that 
        compares the environmental review and 
        permitting requirements for forest 
        products and mining industry projects 
        in Minnesota with requirements in other 
        states and countries.  The matrix and 
        analysis must include an assessment of 
        whether the requirements in Minnesota 
        and other relevant states and countries 
        that have similar industries are more 
        strict, less strict, or equivalent to 
        requirements of the federal 
        Environmental Protection Agency and 
        requirements under the National 
        Environmental Policy Act. 
        The commissioner may transfer money 
        from the environmental fund to the 
        remediation fund as necessary for the 
        purposes of the remediation fund under 
        Minnesota Statutes, section 116.155, 
        subdivision 2. 
        Sec. 3.  NATURAL RESOURCES 
        Subdivision 1.  Total       
        Appropriation                        226,157,000    225,980,000 
                      Summary by Fund
        General              75,681,000    74,431,000
        Natural Resources    63,248,000    63,476,000
        Game and Fish        86,928,000    87,773,000
        Remediation             100,000       100,000
        Permanent School        200,000       200,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Land and Mineral Resources
        Management
             8,903,000      8,675,000 
                      Summary by Fund
        General               5,498,000     5,248,000
        Natural Resources     2,222,000     2,222,000
        Game and Fish           983,000     1,005,000
        Permanent School        200,000       200,000
        $275,000 the first year and $275,000 
        the second year are for iron ore 
        cooperative research, of which $137,500 
        the first year and $137,500 the second 
        year are available only as matched by 
        $1 of nonstate money for each $1 of 
        state money.  The match may be cash or 
        in-kind.  
        $86,000 the first year and $86,000 the 
        second year are for minerals 
        cooperative environmental research, of 
        which $43,000 the first year and 
        $43,000 the second year are available 
        only as matched by $1 of nonstate money 
        for each $1 of state money.  The match 
        may be cash or in-kind.  
        $2,046,000 the first year and 
        $2,046,000 the second year are from the 
        minerals management account in the 
        natural resources fund for only the 
        purposes specified in new Minnesota 
        Statutes, section 93.2236, paragraph 
        (c).  Of this amount, $1,526,000 the 
        first year and $1,526,000 the second 
        year are for mineral resource 
        management, $420,000 the first year and 
        $420,000 the second year are for 
        projects to enhance future income and 
        promote new opportunities, including 
        value-added iron products, geological 
        mapping, and mercury research, and 
        $100,000 the first year and $100,000 
        the second year are for environmental 
        review and the processing of permits 
        for mining projects that involve 
        state-owned mineral rights.  The 
        appropriation is from the revenue 
        deposited in the minerals management 
        account under Minnesota Statutes, 
        section 93.22, subdivision 1, paragraph 
        (b).  $100,000 each year is a onetime 
        appropriation. 
        $150,000 the first year and $150,000 
        the second year are from the state 
        forest suspense account in the 
        permanent school fund to accelerate 
        land exchanges, land sales, and 
        commercial leasing of school trust 
        lands.  This appropriation is to be 
        used toward meeting the provisions of 
        Minnesota Statutes, section 92.121, to 
        exchange school trust lands or put 
        alternatives in effect when management 
        practices have diminished or prohibited 
        revenue generation, and the direction 
        of Minnesota Statutes, section 127A.31, 
        to secure maximum long-term economic 
        return from the school trust lands 
        consistent with fiduciary 
        responsibilities and sound natural 
        resources conservation and management 
        principles. 
        $50,000 the first year and $50,000 the 
        second year are from the state forest 
        suspense account in the permanent 
        school fund to identify, evaluate, and 
        lease construction aggregate located on 
        school trust lands. 
        $250,000 the first year is for a grant 
        to the Board of Regents of the 
        University of Minnesota to drill a 
        5,000 foot core sampling bore hole at 
        the Tower-Soudan mine complex in 
        support of a National Science 
        Foundation grant.  This is a onetime 
        appropriation 
        Subd. 3.  Water Resources Management
            11,092,000     11,092,000 
                      Summary by Fund
        General              10,812,000    10,812,000
        Natural Resources       280,000       280,000
        $210,000 the first year and $210,000 
        the second year are for grants 
        associated with the implementation of 
        the Red River mediation agreement. 
        $65,000 the first year and $65,000 the 
        second year are for a grant to the 
        Mississippi Headwaters Board for up to 
        50 percent of the cost of implementing 
        the comprehensive plan for the upper 
        Mississippi within areas under its 
        jurisdiction.  
        $5,000 the first year and $5,000 the 
        second year are for payment to the 
        Leech Lake Band of Chippewa Indians to 
        implement its portion of the 
        comprehensive plan for the upper 
        Mississippi.  
        $125,000 the first year and $125,000 
        the second year are for the 
        construction of ring dikes under 
        Minnesota Statutes, section 103F.161.  
        The ring dikes may be publicly or 
        privately owned.  Any unencumbered 
        balance does not cancel at the end of 
        the first year and is available for the 
        second year. 
        Subd. 4.  Forest Management  
            35,526,000     35,126,000 
                      Summary by Fund
        General              24,961,000    24,561,000
        Natural Resources    10,315,000    10,315,000
        Game and Fish           250,000       250,000
        $7,217,000 the first year and 
        $7,217,000 the second year are for 
        prevention, presuppression, and 
        suppression costs of emergency 
        firefighting and other costs incurred 
        under Minnesota Statutes, section 
        88.12.  If the appropriation for either 
        year is insufficient to cover all costs 
        of presuppression and suppression, the 
        amount necessary to pay for these costs 
        during the biennium is appropriated 
        from the general fund.  By November 15 
        of each year, the commissioner of 
        natural resources shall submit a report 
        to the chairs of the house of 
        representatives Ways and Means 
        Committee, the senate Finance 
        Committee, the Environment and 
        Agriculture Budget Division of the 
        senate Finance Committee, and the house 
        of representatives Agriculture, 
        Environment and Natural Resources 
        Finance Committee, identifying all 
        firefighting costs incurred and 
        reimbursements received in the prior 
        fiscal year.  These appropriations may 
        not be transferred.  Any reimbursement 
        of firefighting expenditures made to 
        the commissioner from any source other 
        than federal mobilizations shall be 
        deposited into the general fund. 
        $10,315,000 the first year and 
        $10,315,000 the second year are from 
        the forest management investment 
        account in the natural resources fund 
        for only the purposes specified in 
        Minnesota Statutes, section 89.039, 
        subdivision 2. 
        $730,000 the first year and $730,000 
        the second year are for the Forest 
        Resources Council for implementation of 
        the Sustainable Forest Resources Act. 
        $350,000 the first year and $350,000 
        the second year are for the FORIST 
        Timber Management Information System 
        and for increased forestry management.  
        The amount in the second year is also 
        available in the first year. 
        $250,000 the first year and $250,000 
        the second year are from the game and 
        fish fund to implement Ecological 
        Classification Systems (ECS) standards 
        on forested landscapes.  This 
        appropriation is from revenue deposited 
        in the game and fish fund under 
        Minnesota Statutes, section 297A.94, 
        paragraph (e), clause (1). 
        $400,000 the first year is for grants 
        to the Natural Resources Research 
        Institute for silvicultural research to 
        improve the quality and quantity of 
        timber fiber.  The appropriation must 
        be matched in the amount of $400,000, 
        in cash or in-kind contributions, from 
        the forest products industry members of 
        the Minnesota Forest Productivity 
        Research Cooperative.  This is a 
        onetime appropriation.  
        Subd. 5.  Parks and Recreation
        Management
            33,001,000     33,161,000 
                      Summary by Fund
        General              19,279,000    19,279,000
        Natural Resources    13,722,000    13,882,000
        $640,000 the first year and $640,000 
        the second year are from the water 
        recreation account in the natural 
        resources fund for state park water 
        access projects. 
        $3,811,000 the first year and 
        $3,971,000 the second year are from the 
        natural resources fund for state park 
        and recreation area operations.  This 
        appropriation is from the revenue 
        deposited in the natural resources fund 
        under Minnesota Statutes, section 
        297A.94, paragraph (e), clause (2). 
        Subd. 6.  Trails and Waterways
        Management
            26,971,000     26,660,000 
                      Summary by Fund
        General               1,684,000     1,284,000
        Natural Resources    23,196,000    23,289,000
        Game and Fish         2,091,000     2,087,000
        $7,224,000 the first year and 
        $7,224,000 the second year are from the 
        snowmobile trails and enforcement 
        account in the natural resources fund 
        for snowmobile grants-in-aid.  The 
        additional money under this item may be 
        used for new grant-in-aid trails.  Any 
        unencumbered balance does not cancel at 
        the end of the first year and is 
        available for the second year. 
        $925,000 the first year and $825,000 
        the second year are from the natural 
        resources fund for off-highway vehicle 
        grants-in-aid.  Of this amount, 
        $575,000 each year is from the 
        all-terrain vehicle account; $150,000 
        each year is from the off-highway 
        motorcycle account; and $200,000 the 
        first year and $100,000 the second year 
        are from the off-road vehicle account.  
        Any unencumbered balance does not 
        cancel at the end of the first year and 
        is available for the second year. 
        $261,000 the first year and $261,000 
        the second year are from the water 
        recreation account in the natural 
        resources fund for a safe harbor 
        program on Lake Superior. 
        $742,000 the first year and $760,000 
        the second year are from the natural 
        resources fund for state trail 
        operations.  This appropriation is from 
        the revenue deposited in the natural 
        resources fund under Minnesota 
        Statutes, section 297A.94, paragraph 
        (e), clause (2).  
        $655,000 the first year and $655,000 
        the second year are from the natural 
        resources fund for trail grants to 
        local units of government on land to be 
        maintained for at least 20 years for 
        the purposes of the grant.  This 
        appropriation is from the revenue 
        deposited in the natural resources fund 
        under Minnesota Statutes, section 
        297A.94, paragraph (e), clause (4).  
        By June 30, 2007, the department shall 
        establish a boat launch and ramp at 
        Horseshoe Bay in Cook County, and 
        rehabilitate the historic fishing pier 
        on Dower Lake in Todd County. 
        $1,600,000 the first year and 
        $1,900,000 the second year are from the 
        water recreation account in the natural 
        resources fund for the acquisition, 
        development, maintenance, and 
        rehabilitation of existing sites for 
        public access and boating facilities on 
        public waters.  This money is from the 
        watercraft license fee increases in 
        this act. 
        $100,000 the first year is for a grant 
        to the Duluth Port Authority to 
        determine the cause of freshwater 
        corrosion of harbor sheet piling, 
        provided these state funds are matched 
        on a dollar-for-dollar basis by 
        nonstate funds.  This is a onetime 
        appropriation.  
        $300,000 is for a grant to the St. 
        Louis and Lake Counties Regional 
        Railroad Authority to complete 
        constructing, furnishing, and equipping 
        Mesabi Station along the 132-mile 
        recreational trail known as Mesabi 
        Trail and located at the intersection 
        of U.S. Highway 53 and marked Trunk 
        Highway 37.  This appropriation is 
        dependent upon a matching contribution 
        of $800,000 from other sources, public 
        or private.  This is a onetime 
        appropriation.  
        $75,000 the first year is from the 
        all-terrain vehicle account in the 
        natural resources fund for a study to 
        determine the amount of gasoline used 
        each year by all-terrain vehicle riders 
        in the state, except for riders with 
        vehicles registered for private use.  
        The commissioners of natural resources, 
        revenue, and transportation shall 
        jointly determine the amount of 
        unrefunded gasoline tax attributable to 
        all-terrain vehicle use in the state 
        and shall report to the legislature by 
        March 1, 2006, with an appropriate 
        proposed revision to Minnesota 
        Statutes, section 296A.18. 
        $50,000 is appropriated from the 
        all-terrain vehicle account in the 
        natural resources fund to the 
        commissioner of natural resources for 
        fiscal year 2006 for a feasibility 
        study on the use of all-terrain 
        vehicles on the North Shore Trail.  All 
        data and information compiled for this 
        study may be used in any future master 
        trail plan revision.  The study shall 
        be reported back to the house and 
        senate environment committee chairs by 
        March 1, 2006. 
        The appropriation in Laws 2003, chapter 
        128, article 1, section 5, subdivision 
        6, from the water recreation account in 
        the natural resources fund for a 
        cooperative project with the United 
        States Army Corps of Engineers to 
        develop the Mississippi Whitewater Park 
        is available until June 30, 2007. 
        By February 15, 2006, the commissioner 
        shall report to the senate Environment, 
        Agriculture and Economic Development 
        Budget Division and the house 
        Environment, Natural Resources, and 
        Agriculture Finance Committees on the 
        management and operational 
        responsibilities for the Mississippi 
        Whitewater Park authorized by Minnesota 
        Statutes, section 85.0156.  The report 
        shall identify who the potential 
        operators, owners, and managers of the 
        park will be as well as related issues. 
        Subd. 7.  Fish and Wildlife Management
            62,688,000     62,866,000 
                      Summary by Fund
        General               2,166,000     1,966,000
        Natural Resources     1,740,000     1,740,000
        Game and Fish        58,782,000    59,160,000
        $407,000 the first year and $412,000 
        the second year are for resource 
        population surveys in the 1837 treaty 
        area.  Of this amount, $265,000 the 
        first year and $270,000 the second year 
        are from the game and fish fund. 
        $3,013,000 the first year and 
        $3,013,000 the second year are from the 
        wildlife acquisition surcharge account 
        for only the purposes specified in 
        Minnesota Statutes, section 97A.071, 
        subdivision 2a.  This appropriation is 
        available until spent. 
        $7,233,000 the first year and 
        $7,233,000 the second year are from the 
        heritage enhancement account in the 
        game and fish fund for only the 
        purposes specified in Minnesota 
        Statutes, section 297A.94, paragraph 
        (e), clause (1).  
        Notwithstanding Minnesota Statutes, 
        section 84.943, $13,000 the first year 
        and $13,000 the second year from the 
        critical habitat private sector 
        matching account may be used to 
        publicize the critical habitat license 
        plate match program. 
        Notwithstanding Minnesota Statutes, 
        section 297A.94, this appropriation may 
        be used for hunter recruitment and 
        retention and public land user 
        facilities. 
        $1,030,000 the first year and $880,000 
        the second year are from the trout and 
        salmon management account for only the 
        purposes specified in Minnesota 
        Statutes, section 97A.075, subdivision 
        3. 
        $1,411,000 the first year and 
        $1,411,000 the second year are from the 
        deer habitat improvement account for 
        only the purposes specified in 
        Minnesota Statutes, section 97A.075, 
        subdivision 1, paragraph (b). 
        $397,000 the first year and $397,000 
        the second year are from the deer and 
        bear management account for only the 
        purposes specified in Minnesota 
        Statutes, section 97A.075, subdivision 
        1, paragraph (c). 
        $851,000 the first year and $851,000 
        the second year are from the waterfowl 
        habitat improvement account for only 
        the purposes specified in Minnesota 
        Statutes, section 97A.075, subdivision 
        2. 
        $890,000 the first year and $890,000 
        the second year are from the pheasant 
        habitat improvement account for only 
        the purposes specified in Minnesota 
        Statutes, section 97A.075, subdivision 
        4. 
        $142,000 the first year and $142,000 
        the second year are from the wild 
        turkey management account for only the 
        purposes specified in Minnesota 
        Statutes, section 97A.075, subdivision 
        5.  Of this amount, $8,000 the first 
        year and $8,000 the second year are 
        appropriated from the game and fish 
        fund for transfer to the wild turkey 
        management account for purposes 
        specified in Minnesota Statutes, 
        section 97A.075, subdivision 5. 
        $200,000 the first year is for 
        coordination and implementation of the 
        roadsides for wildlife program, 
        including roadside wildlife management 
        training for road managers and adjacent 
        landowners, development of local 
        partnerships to maximize roadside 
        habitat benefits, identification and 
        cataloguing of existing and needed 
        technical resources, and development of 
        a steering group to monitor the 
        progress of the program and identify 
        and resolve issues of concern for 
        wildlife management in roadsides.  This 
        is a onetime appropriation.  
        Notwithstanding Minnesota Statutes, 
        section 297A.94, paragraph (e), clause 
        (1), $325,000 is from the revenue 
        deposited to the game and fish fund 
        under Minnesota Statutes, section 
        297A.94, paragraph (e), clause (1), for 
        a grant to "Let's Go Fishing" of 
        Minnesota to promote opportunities for 
        fishing.  The grant recipient must 
        report back to the commissioner by 
        February 1, 2006, on the use and 
        results of the appropriation.  This is 
        a onetime appropriation. * (The 
        preceding text beginning 
        "Notwithstanding Minnesota Statutes, 
        section 297A.94" was indicated as 
        vetoed by the governor.) 
        Notwithstanding Minnesota Statutes, 
        section 16A.28, the appropriations 
        encumbered under contract on or before 
        June 30, 2007, for aquatic restoration 
        grants and wildlife habitat grants are 
        available until June 30, 2008. 
        Subd. 8.  Ecological Services
            10,196,000     10,235,000 
                      Summary by Fund
        General               3,275,000     3,275,000
        Natural Resources     3,215,000     3,215,000
        Game and Fish         3,706,000     3,745,000
        $1,128,000 the first year and 
        $1,128,000 the second year are from the 
        nongame wildlife management account in 
        the natural resources fund for the 
        purpose of nongame wildlife management. 
        Notwithstanding Minnesota Statutes, 
        section 290.431, $100,000 the first 
        year and $100,000 the second year may 
        be used for nongame information, 
        education, and promotion. 
        $477,000 the first year and $477,000 
        the second year are for the reinvest in 
        Minnesota programs of game and fish, 
        critical habitat, and wetlands 
        established under Minnesota Statutes, 
        section 84.95, subdivision 2. 
        $1,588,000 the first year and 
        $1,588,000 the second year are from the 
        heritage enhancement account in the 
        game and fish fund for only the 
        purposes specified in Minnesota 
        Statutes, section 297A.94, paragraph 
        (e), clause (1).  
        Subd. 9.  Enforcement
            28,492,000     28,817,000 
                      Summary by Fund
        General               3,106,000     3,106,000
        Natural Resources     6,963,000     6,938,000
        Game and Fish        18,323,000    18,673,000
        Remediation             100,000       100,000
        $1,082,000 the first year and 
        $1,082,000 the second year are from the 
        water recreation account in the natural 
        resources fund for grants to counties 
        for boat and water safety. 
        $100,000 the first year and $100,000 
        the second year are from the 
        remediation fund for solid waste 
        enforcement activities under Minnesota 
        Statutes, section 116.073. 
        $315,000 the first year and $315,000 
        the second year are from the snowmobile 
        trails and enforcement account in the 
        natural resources fund for grants to 
        local law enforcement agencies for 
        snowmobile enforcement activities. 
        The unexpended balance of money from 
        Laws 1999, chapter 231, section 5, 
        subdivision 6, must be credited to the 
        snowmobile trails and enforcement 
        account and the appropriation for the 
        repair of public trails damaged by 
        snowmobiles shall be canceled.  
        $1,164,000 the first year and 
        $1,164,000 the second year are from the 
        heritage enhancement account in the 
        game and fish fund for only the 
        purposes specified in Minnesota 
        Statutes, section 297A.94, paragraph 
        (e), clause (1).  
        Overtime must be distributed to 
        conservation officers at historical 
        levels; however, a reasonable reduction 
        or addition may be made to the 
        officer's allocation, if justified, 
        based on an individual officer's 
        workload.  If funding for enforcement 
        is reduced because of an unallotment, 
        the overtime bank may be reduced in 
        proportion to reductions made in other 
        areas of the budget. 
        $225,000 the first year and $225,000 
        the second year are from the natural 
        resources fund for grants to county law 
        enforcement agencies for off-highway 
        vehicle enforcement and public 
        education activities based on 
        off-highway vehicle use in the county.  
        Of this amount, $213,000 each year is 
        from the all-terrain vehicle account; 
        $11,000 each year is from the 
        off-highway motorcycle account; and 
        $1,000 each year is from the off-road 
        vehicle account.  The county 
        enforcement agencies may use money 
        received under this appropriation to 
        make grants to other local enforcement 
        agencies within the county that have a 
        high concentration of off-highway 
        vehicle use.  Of this appropriation, 
        $25,000 each year is for administration 
        of these grants. 
        $15,000 the first year is from the 
        off-highway motorcycle account in the 
        natural resources fund to produce an 
        interactive CD-ROM training tool for 
        the off-highway motorcycle education 
        and training program under Minnesota 
        Statutes, section 84.791. 
        $15,000 the first year and $5,000 the 
        second year are from the off-road 
        vehicle account in the natural 
        resources fund to establish the 
        off-road vehicle environment and safety 
        education and training program under 
        Minnesota Statutes, section 84.8015. 
        Subd. 10.  Operations Support
             9,288,000      9,348,000 
                      Summary by Fund
        General               4,900,000     4,900,000
        Natural Resources     1,595,000     1,595,000
        Game and Fish         2,793,000     2,853,000
        $270,000 the first year and $270,000 
        the second year are from the natural 
        resources fund for grants to be divided 
        equally between the city of St. Paul 
        for the Como Zoo and Conservatory and 
        the city of Duluth Zoo.  This 
        appropriation is from the revenue 
        deposited to the fund under Minnesota 
        Statutes, section 297A.94, paragraph 
        (e), clause (5). 
        Sec. 4.  MINNESOTA
        CONSERVATION CORPS                       840,000        840,000 
                      Summary by Fund
        General                 350,000       350,000
        Natural Resources       490,000       490,000
        The Minnesota Conservation Corps may 
        receive money appropriated from the 
        natural resources fund under this 
        section only as provided in an 
        agreement with the commissioner of 
        natural resources. 
        Sec. 5.  BOARD OF WATER
        AND SOIL RESOURCES                    15,440,000     15,231,000
        $4,102,000 the first year and 
        $4,102,000 the second year are for 
        natural resources block grants to local 
        governments. 
        The board may reduce the amount of the 
        natural resources block grant to a 
        county by an amount equal to any 
        reduction in the county's general 
        services allocation to a soil and water 
        conservation district from the county's 
        previous year allocation when the board 
        determines that the reduction was 
        disproportionate. 
        Grants must be matched with a 
        combination of local cash or in-kind 
        contributions.  The base grant portion 
        related to water planning must be 
        matched by an amount that would be 
        raised by a levy under Minnesota 
        Statutes, section 103B.3369. 
        $3,566,000 the first year and 
        $3,566,000 the second year are for 
        grants to soil and water conservation 
        districts for general purposes, 
        nonpoint engineering, and 
        implementation of the reinvest in 
        Minnesota conservation reserve 
        program.  Upon approval of the board, 
        expenditures may be made from these 
        appropriations for supplies and 
        services benefiting soil and water 
        conservation districts. 
        $3,285,000 the first year and 
        $3,285,000 the second year are for 
        grants to soil and water conservation 
        districts for cost-sharing contracts 
        for erosion control and water quality 
        management.  For base grant allocations 
        made prior to January 1, 2007, up to 
        100 percent of this appropriation may 
        be used for technical assistance.  Of 
        this amount, at least $1,500,000 the 
        first year and $1,500,000 the second 
        year are for grants for cost-sharing 
        contracts for water quality management 
        on feedlots. 
        Any balance in the board's cost share 
        program that remains from the fiscal 
        year 2005 appropriation is available in 
        an amount of up to $15,000 for a grant 
        to the Mower County Soil and Water 
        Conservation District to create a small 
        pond demonstration project in the Cedar 
        River Watershed for purposes of water 
        retention and flood control.  The Mower 
        County Soil and Water Conservation 
        District must seek other sources of 
        funding, including federal and private 
        sources, to ensure that the 
        demonstration project is educational 
        and complete. 
        $100,000 the first year and $100,000 
        the second year are for a grant to the 
        Red River Basin Commission to develop a 
        Red River basin plan and to coordinate 
        water management activities in the 
        states and provinces bordering the Red 
        River.  The unencumbered balance in the 
        first year does not cancel but is 
        available for the second year. 
        $105,000 the first year and $105,000 
        the second year are for a grant to Area 
        II, Minnesota River Basin Projects, 
        Inc., for floodplain management, 
        including administration of programs.  
        If the appropriation in either year is 
        insufficient, the appropriation in the 
        other year is available for it. 
        $109,000 the first year is for an 
        implementation assessment of public 
        drainage system buffers and their use, 
        maintenance, and benefits.  The 
        assessment must be done in consultation 
        with farm groups, watershed districts, 
        soil and water conservation districts, 
        counties, and conservation 
        organizations, as well as federal 
        agencies implementing voluntary buffer 
        programs.  The board shall report the 
        results to the senate and house of 
        representatives committees with 
        jurisdiction over drainage systems by 
        January 15, 2006.  This is a onetime 
        appropriation.  
        $100,000 the first year is for beaver 
        damage control grants under new 
        Minnesota Statutes, section 103F.950.  
        This is a onetime appropriation.  
        The appropriations for grants in this 
        section are available until expended.  
        If an appropriation for grants in 
        either year is insufficient, the 
        appropriation in the other year is 
        available for it. 
        Sec. 6.  ZOOLOGICAL BOARD              6,574,000      6,574,000 
                      Summary by Fund
        General               6,439,000     6,439,000
        Natural Resources       135,000       135,000
        $135,000 the first year and $135,000 
        the second year are from the natural 
        resources fund from the revenue 
        deposited under Minnesota Statutes, 
        section 297A.94, paragraph (e), clause 
        (5).  This is a onetime appropriation. 
        Sec. 7.  SCIENCE MUSEUM     
        OF MINNESOTA                             750,000        750,000 
        Sec. 8.  METROPOLITAN COUNCIL          7,870,000      7,870,000
                      Summary by Fund
        General                 3,300,000      3,300,000
        Natural Resources       4,570,000      4,570,000
        $3,300,000 the first year and 
        $3,300,000 the second year are for 
        metropolitan area regional parks 
        maintenance and operations. 
        $4,570,000 the first year and 
        $4,570,000 the second year are from the 
        natural resources fund for metropolitan 
        area regional parks and trails 
        maintenance and operations.  This 
        appropriation is from the revenue 
        deposited in the natural resources fund 
        under Minnesota Statutes, section 
        297A.94, paragraph (e), clause (3). 
        Sec. 9.  FUND TRANSFER 
        By June 30, 2007, the commissioner of 
        the Pollution Control Agency shall 
        transfer $1,459,000 from the 
        environmental fund to the commissioner 
        of finance for cancellation to the 
        general fund.  
        Sec. 10.  MINNESOTA FUTURE 
        RESOURCES FUND 
        By June 30, 2006, and by June 30, 2007, 
        the commissioner of finance shall 
        transfer any remaining unappropriated 
        balance from the Minnesota future 
        resources fund to the general fund. 
        Sec. 11.  MINNESOTA RESOURCES 
        Subdivision 1.  Total
        Appropriation
                                              20,457,000     18,829,000
                      Summary by Fund
        State Land and Water Conservation
        Account (LAWCON)      1,600,000       -0-
        Environment and Natural Resources
        Trust Fund           18,829,000    18,829,000
        Great Lakes Protection
        Account                  28,000       -0-
        Appropriations from the LAWCON account 
        and Great Lakes protection account are 
        available for either year of the 
        biennium. 
        For appropriations from the environment 
        and natural resources trust fund, any 
        unencumbered balance remaining in the 
        first year does not cancel and is 
        available for the second year of the 
        biennium.  Unless otherwise provided, 
        the amounts in this section are 
        available until June 30, 2007, when 
        projects must be completed and final 
        products delivered. 
        Subd. 2.  Definitions 
        (a) "State land and water conservation 
        account (LAWCON)" means the state land 
        and water conservation account in the 
        natural resources fund referred to in 
        Minnesota Statutes, section 116P.14. 
        (b) "Great Lakes protection account" 
        means the Great Lakes protection 
        account referred to in Minnesota 
        Statutes, section 116Q.02, subdivision 
        1. 
        (c) "Trust fund" means the Minnesota 
        environment and natural resources trust 
        fund referred to in Minnesota Statutes, 
        section 116P.02, subdivision 6. 
        Subd. 3.  Administration                 524,000        525,000
                      Summary by Fund
        Trust Fund              524,000       525,000
        (a) Legislative Commission on Minnesota Resources
        $449,000 the first year and $450,000 
        the second year are from the trust fund 
        for administration as provided in 
        Minnesota Statutes, section 116P.09, 
        subdivision 5. * (The text 
        "and $450,000 the second year" was 
        indicated as vetoed by the governor.) 
        (b) Contract Administration
        $75,000 the first year and $75,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for contract administration activities 
        assigned to the commissioner in this 
        section.  This appropriation is 
        available until June 30, 2008. 
        Subd. 4.  Citizen Advisory Committee      10,000         10,000
                      Summary by Fund
        Trust Fund               10,000        10,000
        $10,000 the first year and $10,000 the 
        second year are from the trust fund to 
        the Legislative Commission on Minnesota 
        Resources for expenses of the citizen 
        advisory committee as provided in 
        Minnesota Statutes, section 116P.06.  
        Notwithstanding Minnesota Statutes, 
        section 16A.281, the availability of 
        $15,000 of the appropriation from Laws 
        2003, chapter 128, article 1, section 
        9, subdivision 4, advisory committee, 
        is extended to June 30, 2007. 
        Subd. 5.  Fish and Wildlife Habitat    5,038,000      5,038,000
                      Summary by Fund
        Trust Fund            5,038,000     5,038,000
        (a) Restoring Minnesota's Fish and Wildlife
        Habitat Corridors-Phase III
        $2,031,000 the first year and 
        $2,031,000 the second year are from the 
        trust fund to the commissioner of 
        natural resources for the third 
        biennium for acceleration of agency 
        programs and cooperative agreements 
        with Pheasants Forever, Minnesota Deer 
        Hunters Association, Ducks Unlimited, 
        Inc., National Wild Turkey Federation, 
        the Nature Conservancy, Minnesota Land 
        Trust, the Trust for Public Land, 
        Minnesota Valley National Wildlife 
        Refuge Trust, Inc., U.S. Fish and 
        Wildlife Service, Red Lake Band of 
        Chippewa, Leech Lake Band of Chippewa, 
        Fond du Lac Band of Chippewa, 
        USDA-Natural Resources Conservation 
        Service, and the Board of Water and 
        Soil Resources to plan, restore, and 
        acquire fragmented landscape corridors 
        that connect areas of quality habitat 
        to sustain fish, wildlife, and plants.  
        Expenditures are limited to the 11 
        project areas as defined in the work 
        program.  Land acquired with this 
        appropriation must be sufficiently 
        improved to meet at least minimum 
        habitat and facility management 
        standards as determined by the 
        commissioner of natural resources.  
        This appropriation may not be used for 
        the purchase of residential structures, 
        unless expressly approved in the work 
        program.  Any land acquired in fee 
        title by the commissioner of natural 
        resources with money from this 
        appropriation must be designated:  (1) 
        as an outdoor recreation unit under 
        Minnesota Statutes, section 86A.07; or 
        (2) as provided in Minnesota Statutes, 
        sections 89.018, subdivision 2, 
        paragraph (a); 97A.101; 97A.125; 
        97C.001; and 97C.011.  The commissioner 
        may similarly designate any lands 
        acquired in less than fee title.  This 
        appropriation is available until June 
        30, 2008, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program. 
        (b) Metropolitan Area Wildlife
        Corridors-Phase II
        $1,765,000 the first year and 
        $1,765,000 the second year are from the 
        trust fund to the commissioner of 
        natural resources for the second 
        biennium for acceleration of agency 
        programs and cooperative agreements 
        with the Trust for Public Land, Ducks 
        Unlimited, Inc., Friends of the 
        Mississippi River, Great River 
        Greening, Minnesota Land Trust, 
        Minnesota Valley National Wildlife 
        Refuge Trust, Inc., Pheasants Forever, 
        Inc., and Friends of the Minnesota 
        Valley for the purposes of planning, 
        improving, and protecting important 
        natural areas in the metropolitan 
        region, as defined by Minnesota 
        Statutes, section 473.121, subdivision 
        2, and portions of the surrounding 
        counties, through grants, contracted 
        services, conservation easements, and 
        fee acquisition.  Land acquired with 
        this appropriation must be sufficiently 
        improved to meet at least minimum 
        management standards as determined by 
        the commissioner of natural resources.  
        Expenditures are limited to the 
        identified project areas as defined in 
        the work program.  This appropriation 
        may not be used for the purchase of 
        residential structures, unless 
        expressly approved in the work 
        program.  Any land acquired in fee 
        title by the commissioner of natural 
        resources with money from this 
        appropriation must be designated:  (1) 
        as an outdoor recreation unit under 
        Minnesota Statutes, section 86A.07; or 
        (2) as provided in Minnesota Statutes, 
        sections 89.018, subdivision 2, 
        paragraph (a); 97A.101; 97A.125; 
        97C.001; and 97C.011.  The commissioner 
        may similarly designate any lands 
        acquired in less than fee title.  This 
        appropriation is available until June 
        30, 2008, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program. 
        (c) Development of Scientific and Natural Areas
        $67,000 the first year and $67,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        to develop and enhance lands designated 
        as scientific and natural areas.  This 
        appropriation is available until June 
        30, 2008, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program. 
        (d) Prairie Stewardship of Private Lands
        $50,000 the first year and $50,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        to develop stewardship plans and 
        implement prairie management on private 
        prairie lands on a cost-share basis 
        with private or federal funds.  This 
        appropriation is available until June 
        30, 2008, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program. 
        (e) Local Initiative Grants-Conservation
        Partners and Environmental Partnerships
        $250,000 the first year and $250,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to provide matching grants of 
        up to $20,000 to local government and 
        private organizations for enhancement, 
        restoration, research, and education 
        associated with natural habitat and 
        environmental service projects.  
        Subdivision 16 applies to grants 
        awarded in the approved work program.  
        This appropriation is available until 
        June 30, 2008, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program. 
        (f) Minnesota ReLeaf Community Forest
        Development and Protection
        $250,000 the first year and $250,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for acceleration of the 
        agency program and a cooperative 
        agreement with Tree Trust to protect 
        forest resources, develop 
        inventory-based management plans, and 
        provide matching grants to communities 
        to plant native trees.  At least 
        $390,000 of this appropriation must be 
        used for grants to communities.  For 
        the purposes of this paragraph, the 
        match must be a nonstate contribution, 
        but may be either cash or qualifying 
        in-kind.  This appropriation is 
        available until June 30, 2008, at which 
        time the project must be completed and 
        final projects delivered, unless an 
        earlier date is specified in the work 
        program. 
        (g) Integrated and Pheromonal Control of
        Common Carp
        $275,000 the first year and $275,000 
        the second year are from the trust fund 
        to the University of Minnesota for the 
        second biennium to research new options 
        for controlling common carp.  This 
        appropriation is available until June 
        30, 2009, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program. 
        (h) Biological Control of European Buckthorn
        and Garlic Mustard
        $100,000 the first year and $100,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to research potential insects 
        for biological control of invasive 
        European buckthorn species for the 
        second biennium and to introduce and 
        evaluate insects for biological control 
        of garlic mustard.  This appropriation 
        is available until June 30, 2008, at 
        which time the project must be 
        completed and final products delivered, 
        unless an earlier date is specified in 
        the work program. 
        (i) Land Exchange Revolving Fund for
        Aitkin, Cass, and Crow Wing Counties
        $250,000 the first year and $250,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with Aitkin 
        County for a six-year revolving loan 
        fund to improve public and private land 
        ownership patterns, increase management 
        efficiency, and protect critical 
        habitat in Aitkin, Cass, and Crow Wing 
        Counties.  By June 30, 2011, Aitkin 
        County shall repay the $500,000 to the 
        commissioner of finance for deposit in 
        the environment and natural resources 
        trust fund. * (The preceding text 
        beginning "(i) Land Exchange Revolving 
        Fund" was indicated as vetoed by the 
        governor.) 
        Subd. 6.  Recreation                   7,160,000      5,559,000
                      Summary by Fund
        Trust Fund            5,560,000     5,559,000
        State Land and Water Conservation
        Account (LAWCON)      1,600,000       -0-
        (a) State Park and Recreation Area
        Land Acquisition
        $1,000,000 the first year and 
        $1,000,000 the second year are from the 
        trust fund to the commissioner of 
        natural resources to acquire 
        in-holdings for state park and 
        recreation areas.  Land acquired with 
        this appropriation must be sufficiently 
        improved to meet at least minimum 
        management standards as determined by 
        the commissioner of natural resources.  
        This appropriation is available until 
        June 30, 2008, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program. 
        (b) LAWCON Federal Reimbursements
        $1,600,000 is from the State Land and 
        Water Conservation Account (LAWCON) in 
        the natural resources fund to the 
        commissioner of natural resources for 
        priorities established by the 
        commissioner for eligible state 
        projects and administrative and 
        planning activities consistent with 
        Minnesota Statutes, section 116P.14, 
        and the federal Land and Water 
        Conservation Fund Act.  Subdivision 16 
        applies to grants awarded in the 
        approved work program.  This 
        appropriation is contingent upon 
        receipt of the federal obligation and 
        remains available until June 30, 2008, 
        at which time the project must be 
        completed and final products delivered, 
        unless an earlier date is specified in 
        the work program. 
        (c) State Park and Recreation Area
        Revenue-Enhancing Development
        $100,000 the first year and $100,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to enhance revenue generation 
        in the state's park and recreation 
        system. * (The preceding text beginning 
        "(c) State Park and Recreation Area" 
        was indicated as vetoed by the 
        governor.) 
        (d) Best Management Practices for Parks
        and Outdoor Recreation
        $100,000 the first year and $100,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with the 
        Minnesota Recreation and Park 
        Association to develop and evaluate 
        opportunities to more efficiently 
        manage Minnesota's parks and outdoor 
        recreation areas. 
        (e) Metropolitan Regional Parks Acquisition,
        Rehabilitation, and Development
        $1,000,000 the first year and 
        $1,000,000 the second year are from the 
        trust fund to the Metropolitan Council 
        for subgrants for the acquisition, 
        development, and rehabilitation in the 
        metropolitan regional park system, 
        consistent with the Metropolitan 
        Council regional recreation open space 
        capital improvement plan.  This 
        appropriation may not be used for the 
        purchase of residential structures, may 
        be used to reimburse implementing 
        agencies for acquisition as expressly 
        approved in the work program, and must 
        be matched by at least 40 percent of 
        nonstate money.  Subdivision 16 applies 
        to grants awarded in the approved work 
        program.  This appropriation is 
        available until June 30, 2008, at which 
        time the project must be completed and 
        final products delivered, unless an 
        earlier date is specified in the work 
        program.  If a project financed under 
        this program receives a federal grant 
        award, the availability of the 
        financing from this paragraph for that 
        project is extended to equal the period 
        of the federal grant. 
        (f) Gitchi-Gami State Trail
        $250,000 the first year and $250,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources, in cooperation with the 
        Gitchi-Gami Trail Association, for the 
        fourth biennium, to design and 
        construct approximately two miles of 
        Gitchi-Gami State Trail segments.  This 
        appropriation is available until June 
        30, 2008, at which time the project 
        must be completed and final products 
        delivered.  If this project receives a 
        federal grant award, the availability 
        of the financing from this paragraph 
        for the project is extended to equal 
        the period of the federal grant. 
        (g) Casey Jones State Trail
        $600,000 the first year and $600,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources in cooperation with the 
        Friends of the Casey Jones Trail 
        Association for land acquisition and 
        development of the Casey Jones State 
        Trail in southwest Minnesota.  This 
        appropriation is available until June 
        30, 2008, at which time the project 
        must be completed and final products 
        delivered.  If this project receives a 
        federal grant award, the availability 
        of the financing from this paragraph 
        for the project is extended to equal 
        the period of the federal grant. 
        (h) Paul Bunyan State Trail Connection
        $200,000 the first year and $200,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to acquire land to connect 
        the Paul Bunyan State Trail within the 
        city of Bemidji. 
        (i) Minnesota River Trail Planning
        $100,000 the first year and $100,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with the 
        University of Minnesota to provide 
        trail planning assistance to three 
        communities along the Minnesota River 
        State Trail. 
        (j) Local Initiative Grants-Parks and Natural Areas
        $600,000 the first year and $600,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to provide matching grants to 
        local governments for acquisition and 
        development of natural and scenic areas 
        and local parks as provided in 
        Minnesota Statutes, section 85.019, 
        subdivisions 2 and 4a, and regional 
        parks outside of the metropolitan 
        area.  Grants may provide up to 50 
        percent of the nonfederal share of the 
        project cost, except nonmetropolitan 
        regional park grants may provide up to 
        60 percent of the nonfederal share of 
        the project cost.  $500,000 of this 
        appropriation is for land acquisition 
        for a proposed county regional park on 
        Kraemer Lake in Stearns County.  The 
        commission will monitor the grants for 
        approximate balance over extended 
        periods of time between the 
        metropolitan area, under Minnesota 
        Statutes, section 473.121, subdivision 
        2, and the nonmetropolitan area through 
        work program oversight and periodic 
        allocation decisions.  For the purposes 
        of this paragraph, the match must be a 
        nonstate contribution, but may be 
        either cash or qualifying in-kind.  
        Recipients may receive funding for more 
        than one project in any given grant 
        period.  Subdivision 16 applies to 
        grants awarded in the approved work 
        program.  This appropriation is 
        available until June 30, 2008, at which 
        time the project must be completed and 
        final products delivered. 
        (k) Regional Park Planning for Nonmetropolitan
        Urban Areas
        $43,000 the first year and $43,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with the University of 
        Minnesota to develop a plan for a 
        system of regional recreation areas for 
        major outstate urban complexes in 
        Minnesota. 
        (l) Local and Regional Trail Grant Initiative Program
        $350,000 the first year and $350,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to provide matching grants to 
        local units of government for the cost 
        of acquisition, development, 
        engineering services, and enhancement 
        of existing and new trail facilities.  
        Subdivision 16 applies to grants 
        awarded in the approved work program.  
        This appropriation is available until 
        June 30, 2008, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program.  
        In addition, if a project financed 
        under this program receives a federal 
        grant award, the availability of the 
        financing from this paragraph for that 
        project is extended to equal the period 
        of the federal grant. 
        (m) Mesabi Trail
        $500,000 the first year and $500,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with St. 
        Louis and Lake Counties Regional Rail 
        Authority for the seventh biennium to 
        acquire and develop segments for the 
        Mesabi Trail.  This appropriation is 
        available until June 30, 2008, at which 
        time the project must be completed and 
        final products delivered.  If this 
        project receives a federal grant award, 
        the availability of the financing from 
        this paragraph for the project is 
        extended to equal the period of the 
        federal grant. 
        (n) Cannon Valley Trail Belle Creek Bridge
        Replacement
        $150,000 the first year and $150,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with the 
        Cannon Valley Trail Joint Powers Board 
        for bridge replacement of the Belle 
        Creek Bridge on the Cannon Valley 
        Trail.  This appropriation must be 
        matched by at least $44,000 of nonstate 
        money. 
        (o) Arrowhead Regional Bike Trail Connections Plan
        $42,000 the first year and $41,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with the Arrowhead 
        Regional Development Commission to 
        analyze the Arrowhead's major bike 
        trails and plan new trail connections. 
        (p) Land Acquisition, Minnesota Landscape Arboretum
        $325,000 the first year and $325,000 
        the second year are from the trust fund 
        to the University of Minnesota for an 
        agreement with the University of 
        Minnesota Landscape Arboretum 
        Foundation for the sixth biennium to 
        acquire land from willing sellers.  
        This appropriation must be matched by 
        an equal amount of nonstate money.  
        This appropriation is available until 
        June 30, 2008, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program. 
        (q) Development and Rehabilitation of Minnesota
        Shooting Ranges
        $150,000 the first year and $150,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to provide technical 
        assistance and matching grants to local 
        communities and recreational shooting 
        and archery clubs for the purpose of 
        developing or rehabilitating shooting 
        and archery facilities for public use.  
        Recipient facilities must be open to 
        the general public at reasonable times 
        and for a reasonable fee on a walk-in 
        basis.  This appropriation is available 
        until June 30, 2008, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program. 
        (r) Birding Maps
        $50,000 the first year and $50,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with Audubon Minnesota 
        to create a new birding trail guide for 
        the North Shore/Arrowhead region and 
        reprint and distribute guides for three 
        existing birding trails. 
        Subd. 7.  Water Resources              3,027,000      3,000,000
                      Summary by Fund
        Trust Fund            2,999,000     3,000,000
        Great Lakes Protection
        Account                                28,000
        (a) Local Water Management Matching Challenge Grants
        $500,000 the first year and $500,000 
        the second year are from the trust fund 
        to the Board of Water and Soil 
        Resources to accelerate the local water 
        management challenge grant program 
        under Minnesota Statutes, sections 
        103B.3361 to 103B.3369, through 
        matching grants to implement high 
        priority activities in state-approved 
        comprehensive water management plans.  
        For the purposes of this paragraph, the 
        match must be a nonstate contribution, 
        but may be either cash or qualifying 
        in-kind.  The grants may be provided on 
        an advance basis as specified in the 
        work program.  This appropriation is 
        available until June 30, 2008, at which 
        time the project must be completed and 
        final products delivered, unless an 
        earlier date is specified in the work 
        program. 
        (b) Accelerating and Enhancing Surface Water
        Monitoring for Lakes and Streams
        $300,000 the first year and $300,000 
        the second year are from the trust fund 
        to the commissioner of the Pollution 
        Control Agency for acceleration of 
        agency programs and cooperative 
        agreements with the Minnesota Lakes 
        Association, Rivers Council of 
        Minnesota, and the University of 
        Minnesota to accelerate monitoring 
        efforts through assessments, citizen 
        training, and implementation grants.  
        This appropriation is available until 
        June 30, 2008, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program. 
        (c) Effects of Land Retirements on the
        Minnesota River
        $150,000 the first year and $150,000 
        the second year are from the trust fund 
        to the Board of Water and Soil 
        Resources for a cooperative agreement 
        with the U.S. Geological Survey to 
        evaluate effects of retired or 
        set-aside agricultural lands on the 
        water quality and aquatic habitat of 
        streams in the Minnesota River Basin in 
        order to enhance prioritization of 
        future land retirements.  This 
        appropriation must be matched by an 
        equal amount of nonstate money.  This 
        appropriation is available until June 
        30, 2008, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program. 
        (d) Recycling Treated Municipal Wastewater for
        Industrial Water Use
        $150,000 the first year and $150,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with the 
        Metropolitan Council to determine the 
        feasibility of recycling treated 
        municipal wastewater for industrial 
        use, characterize industrial water 
        demand and quality, and determine the 
        costs to treat municipal wastewater to 
        meet specific industrial needs. 
        (e) Unwanted Hormone Therapy:  Protecting Water
        and Public Health
        $150,000 the first year and $150,000 
        the second year are from the trust fund 
        to the University of Minnesota to 
        determine where behavior-altering 
        estrogenic compounds come from and how 
        they are distributed in wastewater 
        treatment plants.  This appropriation 
        is available until June 30, 2008, at 
        which time the project must be 
        completed and final products delivered, 
        unless an earlier date is specified in 
        the work program. 
        (f) Climate Change Impacts on Minnesota's
        Aquatic Resources
        $125,000 the first year and $125,000 
        the second year are from the trust fund 
        to the University of Minnesota, Natural 
        Resources Research Institute, to 
        quantify climate, hydrologic, and 
        ecological variability and trends; and 
        identify indicators of future climate 
        change effects on aquatic systems.  
        This appropriation is available until 
        June 30, 2008, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work 
        program. * (The preceding text 
        beginning "(f) Climate Change Impacts 
        on Minnesota's" was indicated as vetoed 
        by the governor.) 
        (g) Green Roof Cost Share and Monitoring
        $175,000 the first year and $175,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with Ramsey 
        Conservation District to install green, 
        vegetated roofs on four commercial or 
        industrial buildings in Roseville and 
        Falcon Heights and to monitor their 
        effectiveness for stormwater 
        management, flood reduction, water 
        quality, and energy efficiency.  The 
        cost of the installations must be 
        matched by at least 50 percent nonstate 
        money. * (The preceding text beginning 
        "(g) Green Roof Cost Share" was 
        indicated as vetoed by the governor.) 
        (h) Woodchip Biofilter Treatment of Feedlot Runoff
        $135,000 the first year and $135,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for agreements with Stearns 
        County Soil and Water Conservation 
        District and the University of 
        Minnesota to treat feedlot runoff with 
        woodchip biofilters to remove 
        pollutants and assess improvements to 
        surface water quality.  This 
        appropriation is available until June 
        30, 2008, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program. 
        (i) Improving Water Quality on the Central Sands
        $294,000 the first year and $293,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for agreements with the 
        University of Minnesota and the Central 
        Lakes College Agricultural Center to 
        reduce nitrate and phosphorus losses to 
        groundwater and surface waters of sandy 
        ecoregions through the development, 
        promotion, and adoption of new farming 
        and land management practices and 
        techniques.  This appropriation is 
        available until June 30, 2008, at which 
        time the project must be completed and 
        final products delivered, unless an 
        earlier date is specified in the work 
        program. 
        (j) Improving Impaired Watersheds:  Conservation
        Drainage Research
        $150,000 the first year and $150,000 
        the second year are from the trust fund 
        to the commissioner of agriculture to 
        analyze conservation drainage systems 
        at University of Minnesota research and 
        outreach centers for opportunities to 
        retrofit drainage infrastructure with 
        water quality improvement 
        technologies.  This appropriation is 
        available until June 30, 2008, at which 
        time the project must be completed and 
        final products delivered, unless an 
        earlier date is specified in the work 
        program. 
        (k) Hydrology, Habitat, and Energy Potential
        of Mine Lakes
        $188,000 the first year and $211,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for agency work and 
        agreements with Architectural 
        Resources, Inc., and Northeast 
        Technical Services, Inc., for a 
        coordinated effort of the Central Iron 
        Range Initiative to establish ultimate 
        mine water elevations, outflows, and 
        quality; design optimum future mineland 
        configurations for fish habitat and 
        lakeshore development; and evaluate 
        wind-pumped hydropower potential.  
        $62,000 the first year and $39,000 the 
        second year are from the trust fund to 
        the Minnesota Geological Survey at the 
        University of Minnesota to assess the 
        geology and mine pit morphometry. 
        (l) Hennepin County Beach Water Quality
        Monitoring Project
        $50,000 the first year and $50,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with Hennepin County 
        to develop a predictive model for 
        on-site determination of beach water 
        quality to prevent outbreaks of 
        waterborne illnesses and provide 
        related water safety outreach to the 
        public. 
        (m) Southwest Minnesota Floodwater Retention Projects
        $250,000 the first year and $250,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with Area II 
        MN River Basin Projects, Inc., to 
        acquire easements and construct four 
        floodwater retention projects in the 
        Minnesota River Basin to improve water 
        quality and waterfowl habitat. 
        (n) Upgrades to Blue Heron Research Vessel
        $28,000 is from the Great Lakes 
        protection account in the first year 
        and $133,000 the first year and 
        $134,000 the second year are from the 
        trust fund to the University of 
        Minnesota, Large Lakes Observatory, to 
        upgrade and overhaul the Blue Heron 
        Research Vessel. * (The preceding text 
        beginning "(n) Upgrades to Blue Heron 
        Research Vessel" was indicated as 
        vetoed by the governor.) 
        (o) Bassett Creek Valley Channel Restoration
        $87,000 the first year and $88,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with the city of 
        Minneapolis for design and engineering 
        activities for habitat restoration and 
        water quality and channel improvements 
        for Bassett Creek Valley. 
        (p) Restoration of Indian Lake
        $100,000 the first year and $100,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for agreements with Indian 
        Lake Improvement District and Bemidji 
        State University to demonstrate the 
        removal of excess nutrients from Indian 
        Lake in Wright County.  This 
        appropriation is available until June 
        30, 2008, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program, and is 
        contingent on all appropriate permits 
        being obtained. 
        Subd. 8.  Land Use and Natural Resource
        Information                            1,000,000      1,000,000
                      Summary by Fund
        Trust Fund            1,000,000     1,000,000
        (a) Minnesota County Biological Survey
        $500,000 the first year and $500,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for the tenth biennium to 
        accelerate the survey that identifies 
        significant natural areas and 
        systematically collects and interprets 
        data on the distribution and ecology of 
        native plant communities, rare plants, 
        and rare animals. 
        (b) Soil Survey
        $250,000 the first year and $250,000 
        the second year are from the trust fund 
        to the Board of Water and Soil 
        Resources to accelerate digitizing of 
        completed soil surveys for Web-based 
        user application and for agreements 
        with Pine and Crow Wing Counties to 
        begin soil surveys.  The new soil 
        surveys must be done on a cost-share 
        basis with local and federal funds.  
        This appropriation is available until 
        June 30, 2008, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program. 
        (c) Land Cover Mapping for Natural Resource Protection
        $125,000 the first year and $125,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with 
        Hennepin County to develop GIS tools 
        for prioritizing natural areas for 
        protection and restoration and to 
        update and complete land cover 
        classification mapping. * (The 
        preceding text beginning "(c) Land 
        Cover Mapping for Natural Resource 
        Protection" was indicated as vetoed by 
        the governor.) 
        (d) Open Space Planning and Protection
        $125,000 the first year and $125,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with Anoka 
        Conservation District to protect open 
        space by identifying high priority 
        natural resource corridors through 
        planning, conservation easements, and 
        land dedication as part of development 
        processes. 
        Subd. 9.  Agriculture and Natural
        Resource Industries                    1,342,000      1,341,000
                      Summary by Fund
        Trust Fund            1,342,000     1,341,000
        (a) Completing Third-Party Certification
        of DNR Forest Lands
        $125,000 the first year and $125,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for third-party assessment 
        and certification of 4,470,000 acres of 
        DNR-administered lands under forest 
        sustainability standards established by 
        two internationally recognized forest 
        certification systems, the Forest 
        Stewardship Council system, and the 
        Sustainable Forestry Initiative system. 
        (b) Third-Party Certification of Private Woodlands
        $188,000 the first year and $188,000 
        the second year are from the trust fund 
        to the University of Minnesota, Cloquet 
        Forestry Center, to pilot a third-party 
        certification assessment framework for 
        nonindustrial private forest owners. 
        (c) Sustainable Management of Private Forest Lands
        $437,000 the first year and $437,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to develop stewardship plans 
        for private forested lands, implement 
        stewardship plans on a cost-share basis 
        and for conservation easements matching 
        federal funds.  This appropriation is 
        available until June 30, 2008, at which 
        time the project must be completed and 
        final products delivered, unless an 
        earlier date is specified in the work 
        program. 
        (d) Evaluating Riparian Timber Harvesting
        Guidelines:  Phase 2
        $167,000 the first year and $166,000 
        the second year are from the trust fund 
        to the University of Minnesota for a 
        second biennium to assess the timber 
        harvesting riparian management 
        guidelines for postharvest impacts on 
        terrestrial, aquatic, and wildlife 
        habitat.  This appropriation is 
        available until June 30, 2008, at which 
        time the project must be completed and 
        final products delivered, unless an 
        earlier date is specified in the work 
        program. 
        (e) Third Crops for Water Quality-Phase 2
        $250,000 the first year and $250,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for cooperative agreements 
        with Rural Advantage and the University 
        of Minnesota to accelerate adoption of 
        third crops to enhance water quality, 
        diversify cropping systems, supply 
        bioenergy, and provide wildlife habitat 
        through demonstration, research, and 
        education.  This appropriation is 
        available until June 30, 2008, at which 
        time the project must be completed and 
        final products delivered, unless an 
        earlier date is specified in the work 
        program. 
        (f) Bioconversion of Potato Waste into
        Marketable Biopolymers
        $175,000 the first year and $175,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with Bemidji 
        State University to evaluate the 
        bioconversion of potato waste into 
        plant-based plastics.  This 
        appropriation is available until June 
        30, 2008, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program. 
        Subd. 10.  Energy                      1,896,000      1,896,000
                      Summary by Fund
        Trust Fund            1,896,000     1,896,000
        (a) Clean Energy Resource Teams and Community Wind
        Energy Rebate Program
        $350,000 the first year and $350,000 
        the second year are from the trust fund 
        to the commissioner of commerce.  
        $300,000 of this appropriation is to 
        provide technical assistance to 
        implement cost-effective conservation, 
        energy efficiency, and renewable energy 
        projects.  $400,000 of this 
        appropriation is to assist two 
        Minnesota communities in developing 
        locally owned wind energy projects by 
        offering financial assistance rebates. 
        (b) Planning for Economic Development
        via Energy Independence
        $120,000 the first year and $120,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with the 
        University of Minnesota-Duluth to 
        evaluate the socioeconomic benefits of 
        statewide and community renewable 
        energy production and distribution by 
        analyzing system installation, 
        technical capabilities, 
        cost-competitiveness, economic impacts, 
        and policy incentives. * (The preceding 
        text beginning "(b) Planning for 
        Economic Development" was indicated as 
        vetoed by the governor.) 
        (c) Manure Methane Digester Compatible Wastes
        and Electrical Generation
        $50,000 the first year and $50,000 the 
        second year are from the trust fund to 
        the commissioner of agriculture to 
        research the potential for a centrally 
        located, multifarm manure digester and 
        the potential use of compatible waste 
        streams with manure digesters. 
        (d) Dairy Farm Digesters
        $168,000 the first year and $168,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with the 
        Minnesota Project for a pilot project 
        to evaluate anaerobic digester 
        technology on average size dairy farms 
        of 50 to 300 cows. 
        (e) Wind to Hydrogen Demonstration
        $400,000 the first year and $400,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with the 
        University of Minnesota, West Central 
        Research and Outreach Center, to 
        develop a model community-scale 
        wind-to-hydrogen facility. 
        (f) Natural Gas Production from
        Agricultural Biomass
        $50,000 the first year and $50,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with Sebesta Blomberg 
        and Associates to demonstrate potential 
        natural gas yield using anaerobic 
        digestion of blends of chopped grasses 
        or crop residue with hog manure and 
        determine optimum operating conditions 
        for conversion to natural gas. 
        (g) Biomass-Derived Oils for Generating Electricity
        and Reducing Emissions
        $75,000 the first year and $75,000 the 
        second year are from the trust fund to 
        the University of Minnesota to evaluate 
        the environmental and performance 
        benefits of using renewable 
        biomass-derived oils, such as soybean 
        oil, for generating electricity. 
        (h) Phillips Biomass Community Energy System
        $450,000 the first year and $450,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with 
        Phillips Community Energy Cooperative 
        to assist in the distribution system 
        equipment and construction costs for a 
        biomass district energy system.  This 
        appropriation is contingent on all 
        appropriate permits being obtained and 
        a signed commitment of financing for 
        the biomass electrical generating 
        facility being in place. * (The 
        preceding text beginning "(h) Phillips 
        Biomass Community Energy System" was 
        indicated as vetoed by the governor.) 
        (i) Laurentian Energy Authority Biomass Project
        $233,000 the first year and $233,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with 
        Virginia Public Utility to lease land 
        and plant approximately 1,000 acres of 
        trees to support a proposed conversion 
        to a biomass power plant. * (The 
        preceding text beginning "(i) 
        Laurentian Energy Authority Biomass 
        Project" was indicated as vetoed by the 
        governor.) 
        Subd. 11.  Environmental Education       360,000        360,000
                      Summary by Fund
        Trust Fund              360,000       360,000
        (a) Enhancing Civic Understanding of Groundwater
        $75,000 the first year and $75,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with the Science 
        Museum of Minnesota to create 
        groundwater exhibits and a statewide 
        traveling groundwater classroom 
        program.  This appropriation is 
        available until June 30, 2008, at which 
        time the project must be completed and 
        final products delivered, unless an 
        earlier date is specified in the work 
        program. * The preceding text beginning 
        "(a) Enhancing Civic Understanding of 
        Groundwater" was indicated as vetoed by 
        the governor.) 
        (b) Cedar Creek Natural History Area Interpretive
        Center and Restoration
        $200,000 the first year and $200,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with the 
        University of Minnesota, Cedar Creek 
        Natural History Area, to restore 400 
        acres of savanna and prairie; construct 
        a Science Interpretive Center to 
        publicly demonstrate technologies for 
        energy efficiency; and create 
        interpretive trails.  This 
        appropriation is available until June 
        30, 2008, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program. 
        (c) Environmental Problem-Solving Model
        for Twin Cities Schools
        $38,000 the first year and $37,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with Eco Education to 
        train high school students and teachers 
        on environmental problem solving. * 
        (The preceding text beginning "(c) 
        Environmental Problem-Solving Model" 
        was indicated as vetoed by the 
        governor.) 
        (d) Tamarack Nature Center Exhibits
        $47,000 the first year and $48,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with Ramsey County 
        Parks and Recreation Department to 
        develop interactive ecological exhibits 
        at Tamarack Nature Center. 
        Subd. 12.  Children's Environmental
        Health                                   100,000        100,000
                      Summary by Fund
        Trust Fund              100,000       100,000
        Minnesota Children's Pesticide Exposure
        Reduction Initiative
        $100,000 the first year and $100,000 
        the second year are appropriated to the 
        commissioner of agriculture to reduce 
        children's pesticide exposure through 
        parent education on alternative pest 
        control methods and safe pesticide use. 
        Subd. 13.  Data Availability Requirements
        (a) During the biennium ending June 30, 
        2007, data collected by the projects 
        funded under this section that have 
        value for planning and management of 
        natural resource, emergency 
        preparedness, and infrastructure 
        investments must conform to the 
        enterprise information architecture 
        developed by the Office of Technology.  
        Spatial data must conform to geographic 
        information system guidelines and 
        standards outlined in that architecture 
        and adopted by the Minnesota Geographic 
        Data Clearinghouse at the Land 
        Management Information Center.  A 
        description of these data that adheres 
        to Office of Technology geographic 
        metadata standards must be submitted to 
        the Land Management Information Center 
        to be made available online through the 
        clearinghouse, and the data themselves 
        must be accessible and free to the 
        public unless made private under the 
        Data Practices Act, Minnesota Statutes, 
        chapter 13. 
        (b) To the extent practicable, summary 
        data and results of projects funded 
        under this section should be readily 
        accessible on the Internet and 
        identified as an environment and 
        natural resources trust fund project. 
        (c) As part of project expenditures, 
        recipients of land acquisition 
        appropriations must provide the 
        information necessary to update public 
        recreation information maps to the 
        Department of Natural Resources in the 
        form specified by the department. 
        Subd. 14.  Project Requirements
        It is a condition of acceptance of the 
        appropriations in this section that any 
        agency or entity receiving the 
        appropriation must comply with 
        Minnesota Statutes, chapter 116P, and 
        vegetation planted must be native to 
        Minnesota and preferably of the local 
        ecotype unless the work program 
        approved by the commission expressly 
        allows the planting of species that are 
        not native to Minnesota.  Bridges that 
        are constructed with appropriations 
        under this section must be made out of 
        metal, concrete, or wood. 
        Subd. 15.  Match Requirements
        Unless specifically authorized, 
        appropriations in this section that 
        must be matched and for which the match 
        has not been committed by December 31, 
        2005, are canceled, and in-kind 
        contributions may not be counted as 
        matching funds. 
        Subd. 16.  Payment Conditions and Capital Equipment Expenditures
        All agreements, grants, or contracts 
        referred to in this section must be 
        administered on a reimbursement basis 
        unless otherwise provided in this 
        section.  Notwithstanding Minnesota 
        Statutes, section 16A.41, expenditures 
        made on or after July 1, 2005, or the 
        date the work program is approved, 
        whichever is later, are eligible for 
        reimbursement unless otherwise provided 
        in this section.  Payment must be made 
        upon receiving documentation that 
        project-eligible, reimbursable dollar 
        amounts have been expended, except that 
        reasonable amounts may be advanced to 
        projects to accommodate cash flow needs 
        or match federal funds.  The advances 
        must be approved as part of the work 
        program.  No expenditures for capital 
        equipment are allowed unless expressly 
        authorized in the project work program. 
        Subd. 17.  Purchase of Recycled and Recyclable Materials
        A political subdivision, public or 
        private corporation, or other entity 
        that receives an appropriation in this 
        section must use the appropriation in 
        compliance with Minnesota Statutes, 
        sections 16B.121 and 16B.122, requiring 
        the purchase of recycled, repairable, 
        and durable materials; the purchase of 
        uncoated paper stock; and the use of 
        soy-based ink, the same as if it were a 
        state agency. 
        Subd. 18.  Energy Conservation
        A recipient to whom an appropriation is 
        made in this section for a capital 
        improvement project shall ensure that 
        the project complies with the 
        applicable energy conservation 
        standards contained in law, including 
        Minnesota Statutes, sections 216C.19 
        and 216C.20, and rules adopted 
        thereunder.  The recipient may use the 
        energy planning, advocacy, and state 
        energy office units of the Department 
        of Commerce to obtain information and 
        technical assistance on energy 
        conservation and alternative energy 
        development relating to the planning 
        and construction of the capital 
        improvement project. 
        Subd. 19.  Accessibility
        Structural and nonstructural facilities 
        must meet the design standards in the 
        Americans with Disability Act (ADA) 
        accessibility guidelines. 
           Sec. 12.  Minnesota Statutes 2004, section 16A.125, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FOREST TRUST LANDS.] (a) The term "state forest 
        trust fund lands" as used in this subdivision, means public land 
        in trust under the Constitution set apart as "forest lands under 
        the authority of the commissioner" of natural resources as 
        defined by section 89.001, subdivision 13. 
           (b) The commissioner of finance shall credit the revenue 
        from the forest trust fund lands to the forest suspense 
        account.  The account must specify the trust funds interested in 
        the lands and the respective receipts of the lands. 
           (c) After a fiscal year, the commissioner of finance shall 
        certify the total costs incurred for forestry during that year 
        under appropriations for the protection, improvement, 
        administration, and management of state forest trust fund lands 
        and construction and improvement of forest roads to enhance the 
        forest value of the lands.  The certificate must specify the 
        trust funds interested in the lands.  The commissioner of 
        natural resources shall supply the commissioner of finance with 
        the information needed for the certificate. 
           (d) After a fiscal year, the commissioner shall distribute 
        the receipts credited to the suspense account during that fiscal 
        year as follows: 
           (a) (1) the amount of the certified costs incurred by the 
        state for forest management, forest improvement, and road 
        improvement during the fiscal year shall be transferred to 
        the general fund. forest management investment account 
        established under section 89.039; 
           (2) the balance of the certified costs incurred by the 
        state during the fiscal year shall be transferred to the general 
        fund; and 
           (b) (3) the balance of the receipts shall then be returned 
        prorated to the trust funds in proportion to their respective 
        interests in the lands which produced the receipts. 
           Sec. 13.  Minnesota Statutes 2004, section 84.027, 
        subdivision 12, is amended to read: 
           Subd. 12.  [PROPERTY DISPOSAL; GIFT ACKNOWLEDGMENT; 
        ADVERTISING SALES.] (a) The commissioner may give away to 
        members of the public items with a value of less than $10 $50 
        that are intended to promote conservation of natural resources 
        or create awareness of the state and its resources or natural 
        resource management programs.  The total value of items given to 
        the public under this paragraph may not exceed $25,000 per year. 
           (b) The commissioner may recognize the contribution of 
        money or in-kind services on plaques, signs, publications, 
        audio-visual materials, and media advertisements by allowing the 
        organization's contribution to be acknowledged in print of 
        readable size. 
           (c) The commissioner may accept paid advertising for 
        departmental publications.  Advertising revenues received are 
        appropriated to the commissioner to be used to defray costs of 
        publications, media productions, or other informational 
        materials.  The commissioner may not accept paid advertising 
        from any elected official or candidate for elective office. 
           Sec. 14.  Minnesota Statutes 2004, section 84.027, 
        subdivision 15, is amended to read: 
           Subd. 15.  [ELECTRONIC TRANSACTIONS.] (a) The commissioner 
        may receive an application for, sell, and issue any license, 
        stamp, permit, pass, sticker, duplicate safety training 
        certification, registration, or transfer under the jurisdiction 
        of the commissioner by electronic means, including by telephone. 
        Notwithstanding section 97A.472, electronic and telephone 
        transactions may be made outside of the state.  The commissioner 
        may: 
           (1) provide for the electronic transfer of funds generated 
        by electronic transactions, including by telephone; 
           (2) assign a license an identification number to an 
        applicant who purchases a hunting or fishing license or 
        recreational vehicle registration by electronic means, to serve 
        as temporary authorization to engage in the licensed activity 
        requiring a license or registration until the license or 
        registration is received or expires; 
           (3) charge and permit agents to charge a fee of individuals 
        who make electronic transactions and transactions by 
        telephone or Internet, including the issuing fee under section 
        97A.485, subdivision 6, fees and an additional transaction fee 
        not to exceed $3.50; 
           (4) collect issuing or filing fees as provided under 
        sections 84.788, subdivision 3, paragraph (e); 84.798, 
        subdivision 3, paragraph (b); 84.82, subdivision 2, paragraph 
        (d); 84.8205, subdivisions 5 and 6; 84.922, subdivision 2, 
        paragraph (e); 85.41, subdivision 5; 86B.415, subdivision 8; and 
        97A.485, subdivision 6, and collect establish, by written order, 
        an electronic licensing system commission on to be paid by 
        revenues generated from all sales of licenses as provided under 
        sections 85.43, paragraph (b), and 97A.485, subdivision 7 made 
        through the electronic licensing system.  The commissioner shall 
        establish the commission in a manner that neither significantly 
        overrecovers nor underrecovers costs involved in providing the 
        electronic licensing system; and 
           (5) adopt rules to administer the provisions of this 
        subdivision. 
           (b) Establishment of The transaction fee fees established 
        under paragraph (a), clause (3), and the commission established 
        under paragraph (a), clause (4), is are not subject to the 
        rulemaking procedures of chapter 14 and section 14.386 does not 
        apply. 
           (c) Money received from fees and commissions collected 
        under this subdivision, including interest earned, is annually 
        appropriated from the game and fish fund and the natural 
        resources fund to the commissioner for the cost of electronic 
        licensing. 
           [EFFECTIVE DATE.] This section is effective July 6, 2005. 
           Sec. 15.  Minnesota Statutes 2004, section 84.0274, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [EXCEPTION FOR NONPROFIT ORGANIZATIONS AND 
        GOVERNMENTAL ENTITIES.] When the commissioner acquires land or 
        interests in land from a nonprofit organization or governmental 
        entity, any or all of the provisions of this section may be 
        waived by mutual agreement of the commissioner and the nonprofit 
        organization or governmental entity. 
           Sec. 16.  Minnesota Statutes 2004, section 84.0274, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [RIGHT OF FIRST REFUSAL AGREEMENT.] The 
        commissioner may enter into a right of first refusal agreement 
        with a landowner prior to determining the value of the land.  No 
        right of first refusal agreement shall be made for a period of 
        greater than two years and payment to the landowner for entry 
        into the agreement shall not exceed $5,000. 
           Sec. 17.  Minnesota Statutes 2004, section 84.0911, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RECEIPTS.] Money received from the sale of wild 
        rice licenses issued by the commissioner under section 84.091, 
        subdivision 3, paragraph (a), clauses (1), (3), and (4), and 
        subdivision 3, paragraph (b), except for the electronic 
        licensing system commission established by the commissioner 
        under section 84.027, subdivision 15, shall be credited to the 
        wild rice management account.  
           [EFFECTIVE DATE.] This section is effective July 6, 2005. 
           Sec. 18.  Minnesota Statutes 2004, section 84.631, is 
        amended to read: 
           84.631 [ROAD EASEMENTS ACROSS STATE LANDS.] 
           (a) Except as provided in section 85.015, subdivision 1b, 
        the commissioner, on behalf of the state, may convey a road 
        easement across state land under the commissioner's jurisdiction 
        other than school trust land, to a private person requesting an 
        easement for access to property owned by the person only if the 
        following requirements are met:  (1) there are no reasonable 
        alternatives to obtain access to the property; and (2) the 
        exercise of the easement will not cause significant adverse 
        environmental or natural resource management impacts.  
           (b) The commissioner shall: 
           (1) require the applicant to pay the market value of the 
        easement; 
           (2) provide that the easement reverts to the state in the 
        event of nonuse; and 
           (3) impose other terms and conditions of use as necessary 
        and appropriate under the circumstances.  
           (c) An applicant shall submit a fee of up to $2,000 with 
        each application for a road easement across state land.  The 
        commissioner must give the applicant an estimate of the costs of 
        the road easement before the applicant submits the fee.  The 
        application fee is nonrefundable, even if the application is 
        withdrawn or denied. 
           (d) Fees collected under paragraph (c) must be deposited in 
        the land management account in the natural resources fund. 
           Sec. 19.  Minnesota Statutes 2004, section 84.775, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CIVIL CITATION; AUTHORITY TO ISSUE.] (a) A 
        conservation officer or other licensed peace officer may issue a 
        civil citation to a person who operates: 
           (1) an off-highway motorcycle in violation of sections 
        84.773, subdivision 1 or 2, clause (1); 84.777; 84.788 to 
        84.795; or 84.90; 
           (2) an off-road vehicle in violation of sections 84.773, 
        subdivision 1 or 2, clause (1); 84.777; 84.798 to 84.804; or 
        84.90; or 
           (3) an all-terrain vehicle in violation of sections 84.773, 
        subdivision 1 or 2, clause (1); 84.777; 84.90; or 84.922 to 
        84.928.  
           (b) A civil citation under paragraph (a) shall require 
        restitution for public and private property damage and impose a 
        penalty of: 
           (1) $100 for the first offense; 
           (2) $200 for the second offense; and 
           (3) $500 for third and subsequent offenses. 
           (c) A conservation officer or other licensed peace officer 
        may issue a civil citation to a person who operates an 
        off-highway motorcycle, off-road vehicle, or all-terrain vehicle 
        in violation of section 84.773, subdivision 2, clause (2) or 
        (3).  A civil citation under this paragraph shall require 
        restitution for damage to wetlands and impose a penalty of:  
           (1) $100 for the first offense; 
           (2) $500 for the second offense; and 
           (3) $1,000 for third and subsequent offenses. 
           (d) If the peace officer determines that there is damage to 
        property requiring restitution, the commissioner must send a 
        written explanation of the extent of the damage and the cost of 
        the repair by first class mail to the address provided by the 
        person receiving the citation within 15 days of the date of the 
        citation. 
           (e) An off-road vehicle or all-terrain vehicle that is 
        equipped with a snorkel device and receives a civil citation 
        under this section is subject to twice the penalty amounts in 
        paragraphs (b) and (c). 
           Sec. 20.  Minnesota Statutes 2004, section 84.780, is 
        amended to read: 
           84.780 [OFF-HIGHWAY VEHICLE DAMAGE ACCOUNT.] 
           (a) The off-highway vehicle damage account is created in 
        the natural resources fund.  Money in the off-highway vehicle 
        damage account is appropriated to the commissioner of natural 
        resources for the repair or restoration of property damaged by 
        the operation of off-highway vehicles in an unpermitted area 
        after August 1, 2003, and for the costs of administration for 
        this section.  Before the commissioner may make a payment from 
        this account, the commissioner must determine whether the damage 
        to the property was caused by the unpermitted use of off-highway 
        vehicles, that the applicant has made reasonable efforts to 
        identify the responsible individual and obtain payment from the 
        individual, and that the applicant has made reasonable efforts 
        to prevent reoccurrence.  By June 30, 2005 2008, the 
        commissioner of finance must transfer the remaining balance in 
        the account to the off-highway motorcycle account under section 
        84.794, the off-road vehicle account under section 84.803, and 
        the all-terrain vehicle account under section 84.927.  The 
        amount transferred to each account must be proportionate to the 
        amounts received in the damage account from the relevant 
        off-highway vehicle accounts. 
           (b) Determinations of the commissioner under this section 
        may be made by written order and are exempt from the rulemaking 
        provisions of chapter 14.  Section 14.386 does not apply.  
           (c) This section expires July 1, 2005 2008. 
           Sec. 21. [84.781] [USE OF DEPARTMENT RESOURCES.] 
           The commissioner of natural resources may permit Department 
        of Natural Resources personnel and equipment from the Division 
        of Trails and Waterways to be used to assist local units of 
        government in developing and maintaining off-highway vehicle 
        grant-in-aid trails located on property owned by or under the 
        control of the local unit of government. 
           Sec. 22.  Minnesota Statutes 2004, section 84.788, 
        subdivision 3, is amended to read: 
           Subd. 3.  [APPLICATION; ISSUANCE; REPORTS.] (a) Application 
        for registration or continued registration must be made to the 
        commissioner or an authorized deputy registrar of motor vehicles 
        in a form prescribed by the commissioner.  The form must state 
        the name and address of every owner of the off-highway 
        motorcycle. 
           (b) A person who purchases from a retail dealer an 
        off-highway motorcycle shall make application for registration 
        to the dealer at the point of sale.  The dealer shall issue a 
        dealer temporary ten-day registration permit to each purchaser 
        who applies to the dealer for registration.  The dealer shall 
        submit the completed registration applications and fees to the 
        deputy registrar at least once each week.  No fee may be charged 
        by a dealer to a purchaser for providing the temporary permit. 
           (c) Upon receipt of the application and the appropriate 
        fee, the commissioner or deputy registrar shall issue to the 
        applicant, or provide to the dealer, a 60-day temporary receipt 
        and shall assign a an assigned registration number that or a 
        commissioner or deputy registrar temporary ten-day permit.  Once 
        issued, the registration number must be affixed to the 
        motorcycle in a manner prescribed by the commissioner according 
        to paragraph (f).  A dealer subject to paragraph (b) shall 
        provide the registration materials and or temporary 
        receipt permit to the purchaser within the ten-day temporary 
        permit period. 
           (d) The commissioner shall develop a registration system to 
        register vehicles under this section.  A deputy registrar of 
        motor vehicles acting under section 168.33, is also a deputy 
        registrar of off-highway motorcycles.  The commissioner of 
        natural resources in agreement with the commissioner of public 
        safety may prescribe the accounting and procedural requirements 
        necessary to ensure efficient handling of registrations and 
        registration fees.  Deputy registrars shall strictly comply with 
        the accounting and procedural requirements.  
           (e) In addition to other fees prescribed by law, a filing 
        fee of $4.50 is charged for each off-highway motorcycle 
        registration renewal, duplicate or replacement registration 
        card, and replacement decal and a filing fee of $7 is charged 
        for each off-highway motorcycle registration and registration 
        transfer issued by: 
           (1) a deputy registrar and must be deposited in the 
        treasury of the jurisdiction where the deputy is appointed, or 
        kept if the deputy is not a public official; or 
           (2) the commissioner and must be deposited in the state 
        treasury and credited to the off-highway motorcycle account. 
           (f) Unless exempted in paragraph (g), the owner of an 
        off-highway motorcycle must display a registration decal issued 
        by the commissioner.  If the motorcycle is licensed as a motor 
        vehicle, a registration decal must be affixed on the upper left 
        corner of the rear license plate.  If the motorcycle is not 
        licensed as a motor vehicle, the decal must be attached on the 
        side of the motorcycle and may be attached to the fork tube.  
        The decal must be attached in a manner so that it is visible 
        while a rider is on the motorcycle.  The issued decals must be 
        of a size to work within the constraints of the electronic 
        licensing system, not to exceed three inches high and three 
        inches wide. 
           (g) Display of a registration decal is not required for an 
        off-highway motorcycle: 
           (1) while being operated on private property; or 
           (2) while competing in a closed-course competition event. 
           Sec. 23.  Minnesota Statutes 2004, section 84.788, is 
        amended by adding a subdivision to read: 
           Subd. 11.  [REFUNDS.] The commissioner may issue a refund 
        on a registration, not including any issuing fees paid under 
        subdivision 3, paragraph (e), or section 84.027, subdivision 15, 
        paragraph (a), clause (3), if the refund request is received 
        within 12 months of the original registration and: 
           (1) the off-highway motorcycle was registered incorrectly 
        by the commissioner or the deputy registrar; or 
           (2) the off-highway motorcycle was registered twice, once 
        by the dealer and once by the customer. 
           Sec. 24.  Minnesota Statutes 2004, section 84.789, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [SOUND EMISSIONS.] (a) On and after July 1, 2006, 
        off-highway motorcycles, when operating on public lands, shall 
        at all times be equipped with a silencer or other device that 
        limits sound emissions according to this subdivision. 
           (b) Sound emissions of competition off-highway motorcycles 
        manufactured on or after January 1, 1998, are limited to not 
        more than 96 dbA and, if manufactured prior to January 1, 1998, 
        to not more than 99 dbA, when measured from a distance of 20 
        inches using test procedures established by the Society of 
        Automotive Engineers under Standard J-1287, as applicable. 
           (c) Sound emissions of all other off-highway motorcycles 
        are limited to not more than 96 dbA if manufactured on or after 
        January 1, 1986, and not more than 99 dbA if manufactured prior 
        to January 1, 1986, when measured from a distance of 20 inches 
        using test procedures established by the Society of Automotive 
        Engineers under Standard J-1287, as applicable. 
           (d) Off-highway motorcycles operating in closed course 
        competition events are excluded from the requirements of this 
        subdivision. 
           Sec. 25.  Minnesota Statutes 2004, section 84.791, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROGRAM ESTABLISHED; WHEN REQUIRED.] (a) 
        The commissioner shall establish a comprehensive off-highway 
        motorcycle environment and safety education and training 
        program, including the preparation and dissemination of vehicle 
        information and safety advice to the public, the training of 
        off-highway motorcycle operators, and the issuance of 
        off-highway motorcycle safety certificates to operators under 
        the age of 16 years who successfully complete the off-highway 
        motorcycle environment and safety education and training courses.
           (b) An individual who is convicted of violating a law 
        related to the operation of an off-highway motorcycle must 
        successfully complete the environment and safety education and 
        training program established under paragraph (a) before 
        continuing operation of an off-highway motorcycle. 
           Sec. 26.  Minnesota Statutes 2004, section 84.791, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FEES.] For the purposes of administering the 
        program and to defray a portion of the expenses of training and 
        certifying vehicle operators, the commissioner shall collect a 
        fee not to exceed $5 from each person who receives the training. 
        The commissioner shall collect a fee for issuing a duplicate 
        off-highway motorcycle safety certificate.  The commissioner 
        shall establish the fee for a duplicate off-highway motorcycle 
        safety certificate, to include a $1 issuing fee for licensing 
        agents, that neither significantly overrecovers nor 
        underrecovers costs, including overhead costs, involved in 
        providing the service.  The fees must, except for the issuing 
        fee for licensing agents under this subdivision, shall be 
        deposited in the state treasury and credited to the off-highway 
        motorcycle account in the natural resources fund. 
           Sec. 27.  Minnesota Statutes 2004, section 84.798, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL REQUIREMENTS.] (a) Unless exempted 
        under paragraph (b) or subdivision 2, after January 1, 1995, a 
        person may not operate and an owner may not give permission for 
        another to operate a vehicle off-road, nor may a person have an 
        off-road vehicle not registered under chapter 168 in possession 
        at an off-road vehicle staging area, or designated trail on 
        off-road vehicle-designated trails or area areas on land 
        administered by the commissioner, or on off-road vehicle 
        grant-in-aid trails and areas funded under section 84.803, 
        unless the vehicle has been registered under this section. 
           (b) Annually on the third Saturday of May, nonregistered 
        off-road vehicles may be operated at the Iron Range Off-Highway 
        Vehicle Recreation Area. 
           Sec. 28.  [84.8015] [EDUCATION AND TRAINING.] 
           Subdivision 1.  [PROGRAM ESTABLISHED WHEN REQUIRED.] (a) 
        The commissioner shall establish a comprehensive off-road 
        vehicle environment and safety education and training program, 
        including the preparation and dissemination of vehicle 
        information and safety advice to the public, the training of 
        off-road vehicle operators, and the issuance of off-road vehicle 
        safety certificates to operators 16 to 18 years of age who 
        successfully complete the off-road vehicle environment and 
        safety education and training courses. 
           (b) Beginning July 1, 2006, an individual who is convicted 
        of violating a law related to the operation of an off-road 
        vehicle must successfully complete the environment and safety 
        education and training program established under paragraph (a) 
        before continuing operation of an off-road vehicle. 
           Subd. 2.  [FEES.] For the purposes of administering the 
        program and to defray a portion of the expenses of training and 
        certifying vehicle operators, the commissioner shall collect a 
        fee not to exceed $15 from each person who receives the 
        training.  The commissioner shall collect a fee for issuing a 
        duplicate off-road vehicle safety certificate.  The commissioner 
        shall establish the fee for a duplicate off-road vehicle safety 
        certificate that neither significantly overrecovers nor 
        underrecovers costs, including overhead costs, involved in 
        providing the service.  The fees must be deposited in the state 
        treasury and credited to the off-road vehicle account. 
           Subd. 3.  [COOPERATION AND CONSULTATION.] The commissioner 
        shall cooperate with private organizations and associations, 
        private and public corporations, and local governmental units in 
        furtherance of the program established under this section.  The 
        commissioner shall consult with the commissioner of public 
        safety in regard to training program subject matter and 
        performance testing that leads to the certification of off-road 
        vehicle operators. 
           Subd. 4.  [RECIPROCITY WITH OTHER STATES.] The commissioner 
        may enter into reciprocity agreements or otherwise certify 
        off-road vehicle environment and safety education and training 
        courses from other states that are substantially similar to 
        in-state courses.  Proof of completion of a course subject to a 
        reciprocity agreement or certified as substantially similar is 
        adequate to meet the safety certificate requirements of this 
        section. 
           Sec. 29.  Minnesota Statutes 2004, section 84.798, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [REFUNDS.] The commissioner may issue a refund 
        on a registration, not including any issuing fees paid under 
        subdivision 3, paragraph (b), or section 84.027, subdivision 15, 
        paragraph (a), clause (3), if the refund request is received 
        within 12 months of the original registration and the vehicle 
        was registered incorrectly by the commissioner or the deputy 
        registrar. 
           Sec. 30.  Minnesota Statutes 2004, section 84.82, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPLICATION, ISSUANCE, REPORTS, ADDITIONAL FEE.] 
        (a) Application for registration or reregistration shall be made 
        to the commissioner or an authorized deputy registrar of motor 
        vehicles in a format prescribed by the commissioner and shall 
        state the legal name and address of every owner of the 
        snowmobile.  
           (b) A person who purchases a snowmobile from a retail 
        dealer shall make application for registration to the dealer at 
        the point of sale.  The dealer shall issue a dealer temporary 
        ten-day registration permit to each purchaser who applies to the 
        dealer for registration.  The temporary registration is valid 
        for 60 days from the date of issue.  Each retail dealer shall 
        submit completed registration and fees to the deputy registrar 
        at least once a week.  No fee may be charged by a dealer to a 
        purchaser for providing the temporary permit. 
           (c) Upon receipt of the application and the appropriate fee 
        as hereinafter provided, such snowmobile shall be registered and 
        a the commissioner or deputy registrar shall issue to the 
        applicant, or provide to the dealer, an assigned registration 
        number assigned which shall or a commissioner or deputy 
        registrar temporary ten-day permit.  Once issued, the 
        registration number must be affixed to the snowmobile in a 
        clearly visible and permanent manner for enforcement purposes as 
        the commissioner of natural resources shall prescribe.  A dealer 
        subject to paragraph (b) shall provide the registration 
        materials or temporary permit to the purchaser within the 
        temporary ten-day permit period.  The registration is not valid 
        unless signed by at least one owner. 
           (c) (d) Each deputy registrar of motor vehicles acting 
        pursuant to section 168.33, shall also be a deputy registrar of 
        snowmobiles.  The commissioner of natural resources in agreement 
        with the commissioner of public safety may prescribe the 
        accounting and procedural requirements necessary to assure 
        efficient handling of registrations and registration fees.  
        Deputy registrars shall strictly comply with these accounting 
        and procedural requirements.  
           (d) (e) A fee of $2 in addition to that otherwise 
        prescribed by law shall be charged for: 
           (1) each snowmobile registered by the registrar or a deputy 
        registrar and the additional fee shall be disposed of in the 
        manner provided in section 168.33, subdivision 2; or 
           (2) each snowmobile registered by the commissioner and the 
        additional fee shall be deposited in the state treasury and 
        credited to the snowmobile trails and enforcement account in the 
        natural resources fund.  
           Sec. 31.  Minnesota Statutes 2004, section 84.82, is 
        amended by adding a subdivision to read: 
           Subd. 11.  [REFUNDS.] The commissioner may issue a refund 
        on a registration, not including any issuing fees paid under 
        subdivision 2, paragraph (e), or section 84.027, subdivision 15, 
        paragraph (a), clause (3), if the refund request is received 
        within 12 months of the original registration and: 
           (1) the snowmobile was registered incorrectly by the 
        commissioner or the deputy registrar; or 
           (2) the snowmobile was registered twice, once by the dealer 
        and once by the customer. 
           Sec. 32.  Minnesota Statutes 2004, section 84.8205, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STICKER REQUIRED; FEE.] A person may not 
        operate a snowmobile that is not registered in this state on a 
        state or grant-in-aid snowmobile trail unless a snowmobile state 
        trail sticker is affixed to the snowmobile.  The commissioner of 
        natural resources shall issue a sticker upon application and 
        payment of a $15 fee.  The fee for a three-year snowmobile state 
        trail sticker that is purchased at the time of snowmobile 
        registration is $30.  In addition to other penalties prescribed 
        by law, a person in violation of this subdivision must purchase 
        an annual state trail sticker for a fee of $30.  The sticker is 
        valid from November 1 through April 30.  Fees collected under 
        this section, except for the issuing fee for licensing agents 
        under this section and for the electronic licensing system 
        commission established by the commissioner under section 84.027, 
        subdivision 15, shall be deposited in the state treasury and 
        credited to the snowmobile trails and enforcement account in the 
        natural resources fund and must be used for grants-in-aid, trail 
        maintenance, grooming, and easement acquisition. 
           [EFFECTIVE DATE.] This section is effective July 6, 2005. 
           Sec. 33.  Minnesota Statutes 2004, section 84.8205, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LICENSE AGENTS.] County auditors are appointed 
        agents of the commissioner for the sale of snowmobile state 
        trail stickers.  The commissioner may appoint other state 
        agencies as agents for the sale of the to issue and sell state 
        trail stickers.  A county auditor may appoint subagents within 
        the county or within adjacent counties to sell stickers.  Upon 
        appointment of a subagent, the auditor shall notify the 
        commissioner of the name and address of the subagent.  The 
        auditor may revoke the appointment of a subagent, and The 
        commissioner may revoke the appointment of a state agency an 
        agent at any time.  The commissioner may require an auditor to 
        revoke a subagent's appointment.  The auditor shall furnish 
        stickers on consignment to any subagent who furnishes a surety 
        bond in favor of the county in an amount at least equal to the 
        value of the stickers to be consigned to that subagent.  A 
        surety bond is not required for a state agency appointed by the 
        commissioner.  The county auditor shall be responsible for all 
        stickers issued to and user fees received by agents except in a 
        county where the county auditor does not retain fees paid for 
        license purposes.  In these counties, the responsibilities 
        imposed by this section upon the county auditor are imposed upon 
        the county.  The commissioner may promulgate adopt additional 
        rules governing the accounting and procedures for handling state 
        trail stickers as provided in section 97A.485, subdivision 11. 
           Any resident desiring to sell snowmobile state trail 
        stickers may either purchase for cash or obtain on consignment 
        stickers from a county auditor in groups of not less than ten 
        individual stickers.  In selling stickers, the resident shall be 
        deemed a subagent of the county auditor and the commissioner, 
        and An agent shall observe all rules promulgated adopted by the 
        commissioner for accounting and handling of licenses and 
        stickers pursuant to section 97A.485, subdivision 11. 
           The county auditor An agent shall promptly deposit and 
        remit all money received from the sale of the stickers with the 
        county treasurer and shall promptly transmit any reports 
        required by the commissioner, plus 96 percent of the price paid 
        by each stickerholder, exclusive of the issuing fee, for each 
        sticker sold or consigned by the auditor and subsequently sold 
        to a stickerholder during the accounting period.  The county 
        auditor shall retain as a commission four percent of all sticker 
        fees, excluding the issuing fee for stickers consigned to 
        subagents and the issuing fee on stickers sold by the auditor to 
        stickerholders to the commissioner. 
           Unsold stickers in the hands of any subagent shall be 
        redeemed by the commissioner if presented for redemption within 
        the time prescribed by the commissioner.  Any stickers not 
        presented for redemption within the period prescribed shall be 
        conclusively presumed to have been sold, and the subagent 
        possessing the same or to whom they are charged shall be 
        accountable. 
           [EFFECTIVE DATE.] This section is effective July 6, 2005. 
           Sec. 34.  Minnesota Statutes 2004, section 84.8205, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DISTRIBUTION ISSUANCE OF STICKERS.] The 
        commissioner and agents shall provide issue and sell snowmobile 
        state trail stickers to all agents authorized to issue stickers 
        by the commissioner. 
           [EFFECTIVE DATE.] This section is effective July 6, 2005. 
           Sec. 35.  Minnesota Statutes 2004, section 84.8205, 
        subdivision 6, is amended to read: 
           Subd. 6.  [DUPLICATE STATE TRAIL STICKERS.] The 
        commissioner and agents shall issue a duplicate sticker to 
        persons whose sticker is lost or destroyed using the process 
        established under section 97A.405, subdivision 3, and rules 
        promulgated thereunder.  The fee for a duplicate state trail 
        sticker is $2, with an issuing fee of 50 cents. 
           [EFFECTIVE DATE.] This section is effective July 6, 2005. 
           Sec. 36.  Minnesota Statutes 2004, section 84.83, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PURPOSES FOR THE ACCOUNT.] The money deposited 
        in the account and interest earned on that money may be expended 
        only as appropriated by law for the following purposes:  
           (1) for a grant-in-aid program to counties and 
        municipalities for construction and maintenance of snowmobile 
        trails, including maintenance of trails on lands and waters of 
        Voyageurs National Park, on Lake of the Woods, on Rainy Lake, 
        and on the following lakes in St. Louis County:  Burntside, 
        Crane, Little Long, Mud, Pelican, Shagawa, and Vermilion; 
           (2) for acquisition, development, and maintenance of state 
        recreational snowmobile trails; 
           (3) for snowmobile safety programs; and 
           (4) for the administration and enforcement of sections 
        84.81 to 84.91 and appropriated grants to local law enforcement 
        agencies.  
           Sec. 37.  Minnesota Statutes 2004, section 84.83, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PROVISIONS APPLICABLE TO FUNDING RECIPIENTS.] 
        (a) Recipients of Minnesota trail assistance program funds must 
        be afforded the same protection and be held to the same standard 
        of liability as a political subdivision under chapter 466 for 
        activities associated with the administration, design, 
        construction, maintenance, and grooming of snowmobile trails.  
           (b) Recipients of Minnesota trail assistance program funds 
        who maintain ice trails on public waters listed under 
        subdivision 3, clause (1), or on waters of Voyageurs National 
        Park are expressly immune from liability under section 466.03, 
        subdivision 6e. 
           Sec. 38.  Minnesota Statutes 2004, section 84.86, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIRED RULES.] With a view of achieving 
        maximum use of snowmobiles consistent with protection of the 
        environment the commissioner of natural resources shall adopt 
        rules in the manner provided by chapter 14, for the following 
        purposes: 
           (1) Registration of snowmobiles and display of registration 
        numbers. 
           (2) Use of snowmobiles insofar as game and fish resources 
        are affected. 
           (3) Use of snowmobiles on public lands and waters, or on 
        grant-in-aid trails. 
           (4) Uniform signs to be used by the state, counties, and 
        cities, which are necessary or desirable to control, direct, or 
        regulate the operation and use of snowmobiles. 
           (5) Specifications relating to snowmobile mufflers. 
           (6) A comprehensive snowmobile information and safety 
        education and training program, including but not limited to the 
        preparation and dissemination of snowmobile information and 
        safety advice to the public, the training of snowmobile 
        operators, and the issuance of snowmobile safety certificates to 
        snowmobile operators who successfully complete the snowmobile 
        safety education and training course.  For the purpose of 
        administering such program and to defray expenses of training 
        and certifying snowmobile operators, the commissioner shall 
        collect a fee from each person who receives the youth or adult 
        training.  The commissioner shall collect a fee, to include a $1 
        issuing fee for licensing agents, for issuing a duplicate 
        snowmobile safety certificate.  The commissioner shall establish 
        both fees in a manner that neither significantly overrecovers 
        nor underrecovers costs, including overhead costs, involved in 
        providing the services.  The fees are not subject to the 
        rulemaking provisions of chapter 14 and section 14.386 does not 
        apply.  The fees may be established by the commissioner 
        notwithstanding section 16A.1283.  The fees must, except for the 
        issuing fee for licensing agents under this subdivision, shall 
        be deposited in the snowmobile trails and enforcement account in 
        the natural resources fund and the amount thereof, except for 
        the electronic licensing system commission established by the 
        commissioner under section 84.027, subdivision 15, and issuing 
        fees collected by the commissioner, is appropriated annually to 
        the Enforcement Division of the Department of Natural Resources 
        for the administration of such programs.  In addition to the fee 
        established by the commissioner, instructors may charge each 
        person up to the established fee amount for class materials and 
        expenses.  The commissioner shall cooperate with private 
        organizations and associations, private and public corporations, 
        and local governmental units in furtherance of the program 
        established under this clause.  School districts may cooperate 
        with the commissioner and volunteer instructors to provide space 
        for the classroom portion of the training.  The commissioner 
        shall consult with the commissioner of public safety in regard 
        to training program subject matter and performance testing that 
        leads to the certification of snowmobile operators. 
           (7) The operator of any snowmobile involved in an accident 
        resulting in injury requiring medical attention or 
        hospitalization to or death of any person or total damage to an 
        extent of $500 or more, shall forward a written report of the 
        accident to the commissioner on such form as the commissioner 
        shall prescribe.  If the operator is killed or is unable to file 
        a report due to incapacitation, any peace officer investigating 
        the accident shall file the accident report within ten business 
        days. 
           [EFFECTIVE DATE.] This section is effective July 6, 2005. 
           Sec. 39.  Minnesota Statutes 2004, section 84.922, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPLICATION, ISSUANCE, REPORTS.] (a) Application 
        for registration or continued registration shall be made to the 
        commissioner of natural resources, the commissioner of public 
        safety or an authorized deputy registrar of motor vehicles in a 
        form prescribed by the commissioner.  The form must state the 
        name and address of every owner of the vehicle.  
           (b) A person who purchases an all-terrain vehicle from a 
        retail dealer shall make application for registration to the 
        dealer at the point of sale.  The dealer shall issue a dealer 
        temporary ten-day registration permit to each purchaser who 
        applies to the dealer for registration.  The dealer shall submit 
        the completed registration application and fees to the deputy 
        registrar at least once each week.  No fee may be charged by a 
        dealer to a purchaser for providing the temporary permit. 
           (c) Upon receipt of the application and the appropriate 
        fee, the commissioner or deputy registrar shall issue to the 
        applicant, or provide to the dealer, a 60-day temporary receipt 
        and shall assign a an assigned registration number that or a 
        commissioner or deputy registrar temporary ten-day permit.  Once 
        issued, the registration number must be affixed to the vehicle 
        in a manner prescribed by the commissioner.  A dealer subject to 
        paragraph (b) shall provide the registration materials and or 
        temporary receipt permit to the purchaser within the ten-day 
        temporary permit period.  The commissioner shall use the 
        snowmobile registration system to register vehicles under this 
        section.  
           (d) Each deputy registrar of motor vehicles acting under 
        section 168.33, is also a deputy registrar of all-terrain 
        vehicles.  The commissioner of natural resources in agreement 
        with the commissioner of public safety may prescribe the 
        accounting and procedural requirements necessary to assure 
        efficient handling of registrations and registration fees. 
        Deputy registrars shall strictly comply with the accounting and 
        procedural requirements.  
           (e) In addition to other fees prescribed by law, a filing 
        fee of $4.50 is charged for each all-terrain vehicle 
        registration renewal, duplicate or replacement registration 
        card, and replacement decal and a filing fee of $7 is charged 
        for each all-terrain vehicle registration and registration 
        transfer issued by: 
           (1) a deputy registrar and shall be deposited in the 
        treasury of the jurisdiction where the deputy is appointed, or 
        retained if the deputy is not a public official; or 
           (2) the commissioner and shall be deposited to the state 
        treasury and credited to the all-terrain vehicle account in the 
        natural resources fund. 
           Sec. 40.  Minnesota Statutes 2004, section 84.922, is 
        amended by adding a subdivision to read: 
           Subd. 12.  [REFUNDS.] The commissioner may issue a refund 
        on a registration, not including any issuing fees paid under 
        subdivision 2, paragraph (e), or section 84.027, subdivision 15, 
        paragraph (a), clause (3), if the refund request is received 
        within 12 months of the original registration and: 
           (1) the vehicle was registered incorrectly by the 
        commissioner or the deputy registrar; or 
           (2) the vehicle was registered twice, once by the dealer 
        and once by the customer. 
           Sec. 41.  Minnesota Statutes 2004, section 84.925, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROGRAM ESTABLISHED.] (a) The commissioner 
        shall establish a comprehensive all-terrain vehicle 
        environmental and safety education and training program, 
        including the preparation and dissemination of vehicle 
        information and safety advice to the public, the training of 
        all-terrain vehicle operators, and the issuance of all-terrain 
        vehicle safety certificates to vehicle operators over the age of 
        12 years who successfully complete the all-terrain vehicle 
        environmental and safety education and training course.  
           (b) For the purpose of administering the program and to 
        defray a portion of the expenses of training and certifying 
        vehicle operators, the commissioner shall collect a fee of $15 
        from each person who receives the training.  The commissioner 
        shall collect a fee, to include a $1 issuing fee for licensing 
        agents, for issuing a duplicate all-terrain vehicle safety 
        certificate.  The commissioner shall establish the fee for a 
        duplicate all-terrain vehicle safety certificate that neither 
        significantly overrecovers nor underrecovers costs, including 
        overhead costs, involved in providing the service.  Fee 
        proceeds, except for the issuing fee for licensing agents under 
        this subdivision, shall be deposited in the all-terrain vehicle 
        account in the natural resources fund.  In addition to the fee 
        established by the commissioner, instructors may charge each 
        person the cost of class material and expenses. 
           (c) The commissioner shall cooperate with private 
        organizations and associations, private and public corporations, 
        and local governmental units in furtherance of the program 
        established under this section.  School districts may cooperate 
        with the commissioner and volunteer instructors to provide space 
        for the classroom portion of the training.  The commissioner 
        shall consult with the commissioner of public safety in regard 
        to training program subject matter and performance testing that 
        leads to the certification of vehicle operators.  By June 30, 
        2003, the commissioner shall incorporate a riding component in 
        the safety education and training program. 
           [EFFECTIVE DATE.] This section, except for the the last 
        sentence in paragraph (b), is effective July 6, 2005. 
           Sec. 42.  Minnesota Statutes 2004, section 84.925, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [TRAINING REQUIREMENTS.] (a) An individual who 
        was born after July 1, 1987, and who is 16 years of age or 
        older, must successfully complete the independent study course 
        component of all-terrain vehicle safety training before 
        operating an all-terrain vehicle on public lands. 
           (b) An individual who is convicted of violating a law 
        related to the operation of an all-terrain vehicle must 
        successfully complete the independent study course component of 
        all-terrain vehicle safety training before continuing operation 
        of an all-terrain vehicle. 
           (c) An individual who is convicted for a second or 
        subsequent excess speed, trespass, or wetland violation in an 
        all-terrain vehicle season, or any conviction for careless or 
        reckless operation of an all-terrain vehicle, must successfully 
        complete the independent study and the testing and operating 
        course components of all-terrain vehicle safety training before 
        continuing operation of an all-terrain vehicle. 
           (d) An individual who receives three or more citations and 
        convictions for violating a law related to the operation of an 
        all-terrain vehicle in a two-year period must successfully 
        complete the independent study and the testing and operating 
        course components of all-terrain vehicle safety training before 
        continuing operation of an all-terrain vehicle. 
           (e) An individual must present evidence of compliance with 
        this subdivision before an all-terrain vehicle registration is 
        issued or renewed. 
           [EFFECTIVE DATE.] This section is effective January 1, 2006.
           Sec. 43.  Minnesota Statutes 2004, section 84.9256, 
        subdivision 1, as amended by Laws 2005, chapter 146, section 5, 
        is amended to read: 
           Subdivision 1.  [PROHIBITIONS ON YOUTHFUL OPERATORS.] (a) 
        Except for operation on public road rights-of-way that is 
        permitted under section 84.928, a driver's license issued by the 
        state or another state is required to operate an all-terrain 
        vehicle along or on a public road right-of-way. 
           (b) A person under 12 years of age shall not: 
           (1) make a direct crossing of a public road right-of-way; 
           (2) operate an all-terrain vehicle on a public road 
        right-of-way in the state; or 
           (3) operate an all-terrain vehicle on public lands or 
        waters, except as provided in paragraph (e).  
           (c) Except for public road rights-of-way of interstate 
        highways, a person 12 years of age but less than 16 years may 
        make a direct crossing of a public road right-of-way of a trunk, 
        county state-aid, or county highway or operate on public lands 
        and waters, only if that person possesses a valid all-terrain 
        vehicle safety certificate issued by the commissioner and is 
        accompanied on another all-terrain vehicle by a person 18 years 
        of age or older who holds a valid driver's license.  
           (d) To be issued an all-terrain vehicle safety certificates 
        issued by the commissioner to persons certificate, a person at 
        least 12 years old, but less than 16 years old, are not valid 
        for machines in excess of 90cc engine capacity unless must: 
           (1) the person successfully completed complete the safety 
        education and training program under section 84.925, subdivision 
        1, including a riding component; and 
           (2) the person is 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 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. 
           Sec. 44.  Minnesota Statutes 2004, section 84.9257, is 
        amended to read: 
           84.9257 [PASSENGERS.] 
           (a) A parent or guardian may operate an all-terrain vehicle 
        carrying one passenger who is under 16 years of age and who 
        wears a safety helmet approved by the commissioner of public 
        safety. 
           (b) For the purpose of this section, "guardian" means a 
        legal guardian of a person under age 16, or a person 18 or older 
        who has been authorized by the parent or legal guardian to 
        supervise the person under age 16. 
           (c) A person 18 years of age or older may operate an 
        all-terrain vehicle carrying one passenger who is 16 or 17 years 
        of age and wears a safety helmet approved by the commissioner of 
        public safety. 
           (d) A person 18 years of age or older may operate an 
        all-terrain vehicle carrying one passenger who is 18 years of 
        age or older. 
           Sec. 45.  Minnesota Statutes 2004, section 84.926, is 
        amended to read: 
           84.926 [VEHICLE USE ALLOWED ON PUBLIC LANDS BY THE 
        COMMISSIONER; EXCEPTIONS.] 
           Subdivision 1.  [EXCEPTION BY PERMIT.] 
        Notwithstanding section sections 84.773, subdivision 1, and 
        84.777, on a case by case basis, the commissioner may issue a 
        permit authorizing a person to operate an off-highway vehicle on 
        individual public trails under the commissioner's jurisdiction 
        during specified times and for specified purposes.  
           Subd. 2.  [ALL-TERRAIN VEHICLES; MANAGED OR LIMITED 
        FORESTS; OFF TRAIL.] Notwithstanding section 84.777, but subject 
        to the commissioner's authority under subdivision 5, on state 
        forest lands classified as managed or limited, other than the 
        Richard J. Dorer Memorial Hardwood Forest, a person may use an 
        all-terrain vehicle off forest trails or forest roads when: 
           (1) hunting big game or transporting or installing hunting 
        stands during October, November, and December, when in 
        possession of a valid big game hunting license; 
           (2) retrieving big game in September, when in possession of 
        a valid big game hunting license; 
           (3) tending traps during an open trapping season for 
        protected furbearers, when in possession of a valid trapping 
        license; or 
           (4) trapping minnows, when in possession of a valid minnow 
        dealer, private fish hatchery, or aquatic farm license. 
           Subd. 3.  [ALL-TERRAIN VEHICLES; CLOSED FORESTS; 
        HUNTING.] Notwithstanding section 84.777, the commissioner may 
        determine whether all-terrain vehicles are allowed on specific 
        forest roads, on state forest lands classified as closed, for 
        the purpose of hunting big game during an open big game season.  
        The determination shall be by written order as published in the 
        State Register and is exempt from chapter 14.  Section 14.386 
        does not apply. 
           Subd. 4.  [OFF-ROAD AND ALL-TERRAIN VEHICLES; LIMITED OR 
        MANAGED FORESTS; TRAILS.] Notwithstanding section 84.777, but 
        subject to the commissioner's authority under subdivision 5, on 
        state forest lands classified as limited or managed, other than 
        the Richard J. Dorer Memorial Hardwood Forest, a person may use 
        vehicles registered under chapter 168 or section 84.798 or 
        84.922 on forest trails that are not designated for a specific 
        use when: 
           (1) hunting big game or transporting or installing hunting 
        stands during October, November, and December, when in 
        possession of a valid big game hunting license; 
           (2) retrieving big game in September, when in possession of 
        a valid big game hunting license; 
           (3) tending traps during an open trapping season for 
        protected furbearers, when in possession of a valid trapping 
        license; or 
           (4) trapping minnows, when in possession of a valid minnow 
        dealer, private fish hatchery, or aquatic farm license. 
           Subd. 5.  [LIMITATIONS ON OFF-TRAIL AND UNDESIGNATED TRAIL 
        USE.] The commissioner may designate areas on state forest lands 
        that are not subject to the exceptions provided in subdivisions 
        2 and 4.  Such designations are not subject to the rulemaking 
        provisions of chapter 14 and section 14.386 does not apply.  
        Before designating such areas, the commissioner shall hold a 
        public meeting in the county where the largest portion of the 
        forest lands are located to provide information to and receive 
        comment from the public regarding the proposed designation.  
        Sixty days before the public meeting, notice of the proposed 
        designation shall be published in the legal newspapers that 
        serve the counties in which the lands are located, in a 
        statewide Department of Natural Resources news release, and in 
        the State Register. 
           Sec. 46.  Minnesota Statutes 2004, section 84.928, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [OPERATION ON ROADS AND RIGHTS-OF-WAY.] (a) 
        Unless otherwise allowed in sections 84.92 to 84.929, a person 
        shall not operate an all-terrain vehicle in this state along or 
        on the roadway, shoulder, or inside bank or slope of a public 
        road right-of-way of a trunk, county state-aid, or county 
        highway other than in the ditch or the outside bank or slope of 
        a trunk, county state-aid, or county highway unless prohibited 
        under paragraph (b). 
           (b) A road authority as defined under section 160.02, 
        subdivision 25, may after a public hearing restrict the use of 
        all-terrain vehicles in the ditch or outside bank or slope of a 
        public road right-of-way under its jurisdiction. 
           (c) The restrictions in paragraphs (a), (b), (g), (h), and 
        (i) do not apply to the operation of an all-terrain vehicle on 
        the shoulder, inside bank or slope, ditch, or outside bank or 
        slope of a trunk, interstate, county state-aid, or county 
        highway when the all-terrain vehicle is: 
           (1) owned by or operated under contract with a publicly or 
        privately owned utility or pipeline company; and 
           (2) used for work on utilities or pipelines. 
           (d) The commissioner may limit the use of a right-of-way 
        for a period of time if the commissioner determines that use of 
        the right-of-way causes: 
           (1) degradation of vegetation on adjacent public property; 
           (2) siltation of waters of the state; 
           (3) impairment or enhancement to the act of taking game; or 
           (4) a threat to safety of the right-of-way users or to 
        individuals on adjacent public property. 
           (d) (e) 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. 
           (e) (f) 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.  
           (f) (g) A person shall not operate an all-terrain vehicle 
        within the public road right-of-way of a trunk, county 
        state-aid, or county highway 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. 
           (g) (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 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. 
           (h) (i) A person shall not operate an all-terrain vehicle 
        at any time within the right-of-way of an interstate highway or 
        freeway within this state. 
           Sec. 47.  Minnesota Statutes 2004, section 84.928, 
        subdivision 2, is amended to read: 
           Subd. 2.  [OPERATION GENERALLY.] A person may not drive or 
        operate an all-terrain vehicle: 
           (1) at a rate of speed greater than reasonable or proper 
        under the surrounding circumstances; 
           (2) in a careless, reckless, or negligent manner so as to 
        endanger or to cause injury or damage to the person or property 
        of another; 
           (3) without headlight and taillight lighted at all times if 
        the vehicle is equipped with headlight and taillight; 
           (4) without a functioning stoplight if so equipped; 
           (5) in a tree nursery or planting in a manner that damages 
        or destroys growing stock; 
           (6) without a brake operational by either hand or foot; 
           (7) with more persons than one person on the vehicle than 
        it was designed for, except as allowed under section 84.9257; 
           (8) at a speed exceeding ten miles per hour on the frozen 
        surface of public waters within 100 feet of a person not on an 
        all-terrain vehicle or within 100 feet of a fishing shelter; or 
           (9) with a snorkel device that has a raised air intake six 
        inches or more above the vehicle manufacturer's original air 
        intake, except within the Iron Range Off-Highway Vehicle 
        Recreation Area as described in section 85.013, subdivision 12a, 
        or other public off-highway vehicle recreation areas; or 
           (10) in a manner that violates operation rules adopted by 
        the commissioner. 
           Sec. 48.  Minnesota Statutes 2004, section 84D.03, 
        subdivision 4, is amended to read: 
           Subd. 4.  [COMMERCIAL FISHING AND TURTLE, FROG, AND 
        CRAYFISH HARVESTING RESTRICTIONS IN INFESTED AND NONINFESTED 
        WATERS.] (a) All nets, traps, buoys, anchors, stakes, and lines 
        used for commercial fishing or turtle, frog, or crayfish 
        harvesting in an infested waters, water that is designated 
        because the waters contain it contains invasive fish or 
        invertebrates, may not be used in noninfested any other waters.  
        If a commercial licensee operates in both noninfested waters and 
        an infested waters water designated because the waters contain 
        it contains invasive fish or invertebrates and other waters, all 
        nets, traps, buoys, anchors, stakes, and lines used for 
        commercial fishing or turtle, frog, or crayfish harvesting in 
        noninfested waters not designated as infested with invasive fish 
        or invertebrates must be tagged with tags provided by the 
        commissioner, as specified in the commercial licensee's license 
        or permit, and may not be used in infested waters designated 
        because the waters contain invasive fish or invertebrates. 
           (b) In infested waters designated solely because the waters 
        contain Eurasian water milfoil, All nets, traps, buoys, anchors, 
        stakes, and lines used for commercial fishing or turtle, frog, 
        or crayfish harvesting in an infested water that is designated 
        solely because it contains Eurasian water milfoil must be dried 
        for a minimum of ten days or frozen for a minimum of two days 
        before they are used in noninfested any other waters, except as 
        provided in this paragraph.  Commercial operators licensees must 
        notify the department's regional or area fisheries office or a 
        conservation officer when before removing nets or equipment from 
        an infested waters water designated solely because it contains 
        Eurasian water milfoil and before resetting those nets or 
        equipment in noninfested any other waters.  All aquatic 
        macrophytes Upon notification, the commissioner may authorize a 
        commercial licensee to move nets or equipment to another water 
        without freezing or drying, if that water is designated as 
        infested solely because it contains Eurasian water milfoil.  
           (c) A commercial licensee must be removed remove all 
        aquatic macrophytes from nets and other equipment when the nets 
        and equipment are removed from infested waters of the state. 
           (d) The commissioner shall provide a commercial licensee 
        with a current listing of designated infested waters at the time 
        that a license or permit is issued. 
           Sec. 49.  Minnesota Statutes 2004, section 85.015, 
        subdivision 5, is amended to read: 
           Subd. 5.  [GLACIAL LAKES TRAIL, KANDIYOHI, POPE, AND 
        DOUGLAS COUNTIES.] (a) The trail shall originate at Kandiyohi 
        County Park on the north shore of Green Lake in Kandiyohi County 
        and thence extend northwesterly to Sibley State Park, thence 
        northwesterly to Glacial Lakes State Park in Pope County, thence 
        northeasterly to Lake Carlos State Park in Douglas County, and 
        there terminate. 
           (b) Trails may be established that extend the Glacial Lakes 
        Trail system from New London to Cold Spring. 
           (c) The trail shall be developed primarily for riding and 
        hiking. 
           Sec. 50.  Minnesota Statutes 2004, section 85.053, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FORM, ISSUANCE, VALIDITY.] (a) The 
        commissioner shall prepare and provide state park permits for 
        each calendar year that state a motor vehicle may enter and use 
        state parks, state recreation areas, and state waysides over 50 
        acres in area.  State park permits must be available and placed 
        on sale by January 1 of the calendar year that the permit is 
        valid.  A separate motorcycle permit may be prepared and 
        provided by the commissioner. 
           (b) An annual state park permit must be affixed when 
        purchased and may be used from the time it is affixed purchased 
        for a 12-month period.  State park permits in each category must 
        be numbered consecutively for each year of issue.  
           (c) State park permits shall be issued by employees of the 
        Division of Parks and Recreation as designated by the 
        commissioner.  State park permits also may be consigned to and 
        issued by agents designated by the commissioner who are not 
        employees of the Division of Parks and Recreation.  All proceeds 
        from the sale of permits and all unsold permits consigned to 
        agents shall be returned to the commissioner at such times as 
        the commissioner may direct, but no later than the end of the 
        calendar year for which the permits are effective.  No part of 
        the permit fee may be retained by an agent.  An additional 
        charge or fee in an amount to be determined by the commissioner, 
        but not to exceed four percent of the price of the permit, may 
        be collected and retained by an agent for handling or selling 
        the permits. 
           Sec. 51.  Minnesota Statutes 2004, section 85.053, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REQUIREMENT.] Except as provided in section 
        85.054, a motor vehicle may not enter a state park, state 
        recreation area, or state wayside over 50 acres in area, without 
        a state park permit issued under this section.  Except for 
        vehicles permitted under subdivision 7, paragraph (a), clause 
        (2), the state park permit must be affixed to the lower right 
        corner windshield of the motor vehicle and must be completely 
        affixed by its own adhesive to the windshield, or the 
        commissioner may, by written order, provide an alternative means 
        to display and validate annual permits. 
           Sec. 52.  Minnesota Statutes 2004, section 85.054, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STATE PARK OPEN HOUSE DAY.] (a) A state 
        park permit is not required for a motor vehicle to enter a state 
        park, state monument, state recreation area, or state wayside, 
        on one day each calendar year at each park, which the 
        commissioner may designate as State Park Open House Day.  The 
        commissioner may designate two consecutive days as State Park 
        Open House Day, if the open house is held in conjunction with a 
        special pageant described in section 85.052, subdivision 2.  
           (b) The commissioner shall announce the date of each state 
        park open house day at least 30 days in advance of the date it 
        occurs. 
           (c)  The state park open house day is to acquaint the 
        public with state parks, recreation areas, and waysides. 
           Sec. 53.  Minnesota Statutes 2004, section 85.054, is 
        amended by adding a subdivision to read: 
           Subd. 11.  [BIG BOG STATE RECREATION AREA.] A state park 
        permit is not required and a fee may not be charged for motor 
        vehicle entry or parking at the parking area located north of 
        Tamarac River in the southern unit of Big Bog State Recreation 
        Area, Beltrami County. 
           Sec. 54.  Minnesota Statutes 2004, section 85.055, is 
        amended by adding a subdivision to read: 
           Subd. 1b.  [DISCOUNTS.] Except as otherwise specified in 
        law, and notwithstanding section 16A.1285, subdivision 2, the 
        commissioner may by written order authorize waiver or reduction 
        of state park entrance fees. 
           Sec. 55.  Minnesota Statutes 2004, section 85.055, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FEE DEPOSIT AND APPROPRIATION.] The fees 
        collected under this section shall be deposited in the natural 
        resources fund and credited to a 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, is available for appropriation to the 
        commissioner to operate and maintain the state park system. 
           [EFFECTIVE DATE.] This section is effective July 6, 2005. 
           Sec. 56.  Minnesota Statutes 2004, section 85.42, is 
        amended to read: 
           85.42 [USER FEE; VALIDITY.] 
           (a) The fee for an annual cross-country ski pass is $9 $14 
        for an individual age 16 and over.  The fee for a three-year 
        pass is $24 $39 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 $2 $4 
        for an individual age 16 and over.  This fee shall be collected 
        at the time the pass is purchased.  The daily pass is valid only 
        for the date designated on the pass form. 
           (c) A pass must be signed by the skier across the front of 
        the pass to be valid and becomes nontransferable on signing.  
           Sec. 57.  Minnesota Statutes 2004, section 85.43, is 
        amended to read: 
           85.43 [DISPOSITION OF RECEIPTS; PURPOSE.] 
           (a) Fees from cross-country ski passes shall be deposited 
        in the state treasury and credited to a cross-country ski 
        account in the natural resources fund and, except as provided in 
        paragraph (b) for the electronic licensing system commission 
        established by the commissioner under section 84.027, 
        subdivision 15, are appropriated to the commissioner of natural 
        resources for: 
           (1) grants-in-aid for cross-country ski trails sponsored by 
        local units of government and special park districts as provided 
        in section 85.44; and. 
           (2) maintenance, winter grooming, and associated 
        administrative costs for cross-country ski trails under the 
        jurisdiction of the commissioner. 
           (b) The commissioner shall retain for the operation of the 
        electronic licensing system a commission of 4.7 percent of all 
        cross-country ski pass fees collected. 
           [EFFECTIVE DATE.] This section is effective July 6, 2005. 
           Sec. 58.  Minnesota Statutes 2004, section 86B.415, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [WATERCRAFT 19 FEET OR LESS.] The fee for a 
        watercraft license for watercraft 19 feet or less in length 
        is $18 $27 except: 
           (1) for watercraft, other than personal watercraft, 19 feet 
        in length or less that is offered for rent or lease, the fee is 
        $6 $9; 
           (2) for a canoe, kayak, sailboat, sailboard, paddle boat, 
        or rowing shell 19 feet in length or less, the fee is $7 $10.50; 
           (3) for a watercraft 19 feet in length or less used by a 
        nonprofit corporation for teaching boat and water safety, the 
        fee is as provided in subdivision 4; 
           (4) for a watercraft owned by a dealer under a dealer's 
        license, the fee is as provided in subdivision 5; 
           (5) for a personal watercraft, the fee is $25 $37.50; and 
           (6) for a watercraft less than 17 feet in length, other 
        than a watercraft listed in clauses (1) to (5), the fee 
        is $12 $18. 
           Sec. 59.  Minnesota Statutes 2004, section 86B.415, 
        subdivision 2, is amended to read: 
           Subd. 2.  [WATERCRAFT OVER 19 FEET.] Except as provided in 
        subdivisions 3, 4, and 5, the watercraft license fee: 
           (1) for a watercraft more than 19 feet but less than 26 
        feet in length is $30 $45; 
           (2) for a watercraft 26 feet but less than 40 feet in 
        length is $45 $67.50; and 
           (3) for a watercraft 40 feet in length or longer is $60 $90.
           Sec. 60.  Minnesota Statutes 2004, section 86B.415, 
        subdivision 3, is amended to read: 
           Subd. 3.  [WATERCRAFT OVER 19 FEET FOR HIRE.] The license 
        fee for a watercraft more than 19 feet in length for hire with 
        an operator is $50 $75 each.  
           Sec. 61.  Minnesota Statutes 2004, section 86B.415, 
        subdivision 4, is amended to read: 
           Subd. 4.  [WATERCRAFT USED BY NONPROFIT CORPORATION FOR 
        TEACHING.] The watercraft license fee for a watercraft used by a 
        nonprofit organization for teaching boat and water safety is 
        $3 $4.50 each.  
           Sec. 62.  Minnesota Statutes 2004, section 86B.415, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DEALER'S LICENSE.] There is no separate fee for 
        watercraft owned by a dealer under a dealer's license.  The fee 
        for a dealer's license is $45 $67.50.  
           Sec. 63.  Minnesota Statutes 2004, section 86B.415, 
        subdivision 6, is amended to read: 
           Subd. 6.  [TRANSFER OR DUPLICATE LICENSE.] The fee to 
        transfer a watercraft license or be issued a duplicate license 
        is $3 $4.50.  
           Sec. 64.  Minnesota Statutes 2004, section 86B.415, is 
        amended by adding a subdivision to read: 
           Subd. 11.  [REFUNDS.] The commissioner may issue a refund 
        on a license or title, not including any issuing fees paid under 
        subdivision 8 or section 84.027, subdivision 15, paragraph (a), 
        clause (3), or 86B.870, subdivision 1, paragraph (b), if the 
        refund request is received within 12 months of the original 
        license or title and: 
           (1) the watercraft was licensed or titled incorrectly by 
        the commissioner or the deputy registrar; 
           (2) the customer was incorrectly charged a title fee; or 
           (3) the watercraft was licensed or titled twice, once by 
        the dealer and once by the customer. 
           Sec. 65.  [86B.706] [WATER RECREATION ACCOUNT; RECEIPTS AND 
        PURPOSE.] 
           Subdivision 1.  [CREATION.] The water recreation account is 
        created in the state treasury in the natural resources fund. 
           Subd. 2.  [MONEY DEPOSITED IN ACCOUNT.] The following shall 
        be deposited in the state treasury and credited to the water 
        recreation account: 
           (1) fees and surcharges from titling and licensing of 
        watercraft under this chapter; 
           (2) fines, installment payments, and forfeited bail 
        according to section 86B.705, subdivision 2; 
           (3) civil penalties according to section 84D.13; 
           (4) mooring fees and receipts from the sale of marine gas 
        at state-operated or state-assisted small craft harbors and 
        mooring facilities according to section 86A.21; 
           (5) the unrefunded gasoline tax attributable to watercraft 
        use under section 296A.18; and 
           (6) fees for permits issued to control or harvest aquatic 
        plants other than wild rice under section 103G.615, subdivision 
        2. 
           Subd. 3.  [PURPOSES.] The money in the account may be 
        expended only as appropriated by law for the following purposes: 
           (1) as directed under section 296A.18, subdivision 2, for 
        acquisition, development, maintenance, and rehabilitation of 
        public water access and boating facilities on public waters; 
        lake and river improvements; and boat and water safety; 
           (2) from the fees collected at state-operated or 
        state-assisted small craft harbors and mooring facilities from 
        daily and seasonal moorings and the sale of marine gas, for 
        maintenance, operation, replacement, and expansion of these 
        facilities and for the debt service on state bonds sold to 
        finance these facilities; 
           (3) for administration and enforcement of this chapter as 
        it pertains to titling and licensing of watercraft and use and 
        safe operation of watercraft; grants for county-sponsored and 
        administered boat and water safety programs; and state boat and 
        water safety efforts; 
           (4) for management of aquatic invasive species and the 
        implementation of chapter 84D as it pertains to aquatic invasive 
        species, including control, public awareness, law enforcement, 
        assessment and monitoring, management planning, and research; 
        and 
           (5) for management of aquatic plants and the implementation 
        of section 103G.615 as it pertains to aquatic plants, including 
        plant removal permitting, control, public awareness, law 
        enforcement, assessment and monitoring, management planning, and 
        research. 
           Sec. 66.  Minnesota Statutes 2004, section 88.17, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PERMIT REQUIRED.] (a) A permit to start a 
        fire to burn vegetative materials and other materials allowed by 
        Minnesota Statutes or official state rules and regulations may 
        be given by the commissioner or the commissioner's agent.  This 
        permission shall be in the form of: 
           (1) a written permit signed issued by a forest officer, 
        fire warden, authorized Minnesota pollution control agent, or 
        other person authorized by the forest officer, or town fire 
        warden, and commissioner; or 
           (2) an electronic permit issued by the commissioner, an 
        agent authorized by the commissioner, or an Internet site 
        authorized by the commissioner. 
           (b) Burning permits shall set the time and conditions by 
        which the fire may be started and burned.  The permit shall also 
        specifically list the materials that may be burned.  The 
        permittee must have the permit on their person and shall produce 
        the permit for inspection when requested to do so by a forest 
        officer, town fire warden, conservation officer, or other peace 
        officer.  The permittee shall remain with the fire at all times 
        and before leaving the site shall completely extinguish the 
        fire.  A person shall not start or cause a fire to be started on 
        any land that is not owned or under their legal control without 
        the written permission of the owner, lessee, or an agent of the 
        owner or lessee of the land.  Violating or exceeding the permit 
        conditions shall constitute a misdemeanor and shall be cause for 
        the permit to be revoked. 
           Sec. 67.  Minnesota Statutes 2004, section 88.17, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [ACCOUNT CREATED.] There is created in the state 
        treasury a burning permit account within the natural resources 
        fund where all fees collected under this section shall be 
        deposited. 
           Sec. 68.  Minnesota Statutes 2004, section 88.17, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [PERMIT FEES.] (a) The annual fees for an 
        electronic burning permit are: 
           (1) $5 for a noncommercial burning permit; and 
           (2) for commercial enterprises that obtain multiple 
        permits, $5 per permit for each burning site, up to a maximum of 
        $50 per individual business enterprise per year.  
           (b) Except for the issuing fee under paragraph (c), and for 
        the electronic licensing system commission established by the 
        commissioner under section 84.027, subdivision 15, money 
        received from permits issued under this section shall be 
        deposited in the state treasury and credited to the burning 
        permit account and is annually appropriated to the commissioner 
        of natural resources for the costs of operating the burning 
        permit system. 
           (c) Of the fee amount collected under paragraph (a), $1 
        shall be retained by the permit agent as a commission for 
        issuing electronic permits. 
           (d) Fire wardens who issue written permits may charge a fee 
        of up to $1 for each permit issued, to be retained by the fire 
        warden as a commission for issuing the permit.  This paragraph 
        does not limit a local government unit from charging an 
        administrative fee for issuing open burning permits within its 
        jurisdiction. 
           Sec. 69.  Minnesota Statutes 2004, section 88.6435, 
        subdivision 4, is amended to read: 
           Subd. 4.  [FOREST BOUGH ACCOUNT; DISPOSITION OF PERMIT FEES 
        AND PENALTIES.] (a) The forest bough account is established in 
        the state treasury within the natural resources fund. 
           (b) Fees for permits issued under this section shall be 
        deposited in the state treasury and credited to the special 
        revenue fund forest bough account and, except for the electronic 
        licensing system commission established by the commissioner 
        under section 84.027, subdivision 15, are annually appropriated 
        to the commissioner of natural resources for costs associated 
        with balsam bough educational programs for harvesters and buyers.
           [EFFECTIVE DATE.] This section is effective July 6, 2005. 
           Sec. 70.  Minnesota Statutes 2004, section 89.039, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ACCOUNT ESTABLISHED; SOURCES.] The forest 
        management investment account is created in the natural 
        resources fund in the state treasury and money in the account 
        may be spent only for the purposes provided in subdivision 2.  
        The following revenue shall be deposited in the forest 
        management investment account: 
           (1) timber sales receipts transferred from the consolidated 
        conservation areas account as provided in section 84A.51, 
        subdivision 2; 
           (2) timber sales receipts from forest lands as provided in 
        section 89.035; and 
           (3) money transferred from the forest suspense account 
        according to section 16A.125, subdivision 5; and 
           (4) interest accruing from investment of the account. 
           Sec. 71.  Minnesota Statutes 2004, section 89.19, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RULEMAKING EXEMPTION.] Designations of forest 
        trails and changes to the designations by the commissioner shall 
        be by written order published in the State Register.  
        Designations and changes to designations are not subject to the 
        rulemaking provisions of chapter 14 and section 14.386 does not 
        apply.  Before designating or changing a designation of forest 
        trails, the commissioner shall hold a public meeting in the 
        county where the largest portion of the forest lands are located 
        to provide information to and receive comment from the public 
        regarding the proposed trail designation or change in 
        designation.  Sixty days before the public meeting, notice of 
        the proposed forest trail designation or change in designation 
        shall be published in the legal newspapers that serve the 
        counties in which the lands are located, in a statewide 
        Department of Natural Resources news release, and in the State 
        Register. 
           Sec. 72.  Minnesota Statutes 2004, section 89.36, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PURCHASE OF STOCK.] The commissioner of natural 
        resources may purchase tree planting stock for the purposes 
        herein authorized under the provisions of sections 89.35 to 
        89.39, or any other applicable law now or hereafter in 
        force.  The commissioner must give preference for Minnesota 
        grown planting stock. 
           Sec. 73.  Minnesota Statutes 2004, section 89.37, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PROCEEDS OF SALE.] All money received in payment 
        for tree planting stock supplied under this section shall be 
        deposited in the state treasury and credited to a forest nursery 
        account and are available to the commissioner of natural 
        resources for the purposes of sections 89.35 to 89.37, including 
        up to $250,000 per year for forestry education and technical 
        assistance. 
           Sec. 74.  Minnesota Statutes 2004, section 90.195, is 
        amended to read: 
           90.195 [SPECIAL USE PERMIT.] 
           The commissioner may issue a permit to salvage or cut not 
        to exceed 12 cords of fuelwood per year for personal use from 
        either or both of the following sources:  (1) dead, down, and 
        diseased trees; (2) other trees that are of negative value under 
        good forest management practices.  The permits may be issued for 
        a period not to exceed one year.  The commissioner shall charge 
        a fee, not less than $5, in an amount up to the stumpage for the 
        permit that shall cover the commissioner's cost of issuing the 
        permit and 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.
           Sec. 75.  Minnesota Statutes 2004, section 92.03, 
        subdivision 4, is amended to read: 
           Subd. 4.  [INTERNAL IMPROVEMENT LANDS.] When lands donated 
        to the state under the eighth section of an act of Congress 
        entitled "An act to appropriate the proceeds of the sales of the 
        public lands, and to grant preemption rights," approved 
        September 4, 1841, must be are sold and, the money derived from 
        its sale must be invested, as provided by the Minnesota 
        Constitution, article XI, section 8. 
           Sec. 76.  [92.685] [LAND MANAGEMENT ACCOUNT.] 
           The land management account is created in the natural 
        resources fund.  Money credited to the account is appropriated 
        annually to the commissioner of natural resources for the Lands 
        and Minerals Division to administer the road easement program 
        under section 84.631. 
           Sec. 77.  [93.2236] [MINERALS MANAGEMENT ACCOUNT.] 
           (a) The minerals management account is created as an 
        account in the natural resources fund.  Interest earned on money 
        in the account accrues to the account.  Money in the account may 
        be spent or distributed only as provided in paragraphs (b) and 
        (c). 
           (b) If the balance in the minerals management account 
        exceeds $3,000,000 on June 30, the amount exceeding $3,000,000 
        must be distributed to the permanent school fund and the 
        permanent university fund.  The amount distributed to each fund 
        must be in the same proportion as the total mineral lease 
        revenue received in the previous biennium from school trust 
        lands and university lands. 
           (c) Subject to appropriation by the legislature, money in 
        the minerals management account may be spent by the commissioner 
        of natural resources for mineral resource management and 
        projects to enhance future mineral income and promote new 
        mineral resource opportunities. 
           Sec. 78.  Minnesota Statutes 2004, section 94.342, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CLASS A.] All land owned by the state and 
        controlled or administered by the commissioner or by any 
        division or agency of the Department of Natural Resources shall 
        be known as Class A land for the purposes of sections 94.341 to 
        94.347.  Class A land shall include school, swamp, internal 
        improvement, and other land granted to the state by acts of 
        Congress, state forest land, tax-forfeited land held by the 
        state free from any trust in favor of taxing districts, and 
        other land acquired by the state in any manner and controlled or 
        administered as aforesaid; but this enumeration shall not be 
        deemed exclusive.  
           Sec. 79.  Minnesota Statutes 2004, section 94.342, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CLASS C ADDITIONAL RESTRICTIONS ON RIPARIAN 
        LAND.] Land bordering on or adjacent to any meandered or other 
        public waters and withdrawn from sale by law is Class C riparian 
        land.  Class C Riparian land may not be given in exchange unless 
        expressly authorized by the legislature or unless through the 
        same exchange the state acquires land on the same or other 
        public waters in the same general vicinity affording at least 
        equal opportunity for access to the waters and other riparian 
        use by the public; provided, that any exchange with the United 
        States or any agency thereof may be made free from this 
        limitation upon condition that the state land given in exchange 
        bordering on public waters shall be subject to reservations by 
        the state for public travel along the shores as provided by 
        section 92.45, unless waived as provided in this subdivision, 
        and that there shall be reserved by the state such additional 
        rights of public use upon suitable portions of such state land 
        as the commissioner of natural resources, with the approval of 
        the Land Exchange Board, may deem necessary or desirable for 
        camping, hunting, fishing, access to the water, and other public 
        uses.  In regard to Class B or Class C riparian land that is 
        contained within that portion of the Superior National Forest 
        that is designated as the Boundary Waters Canoe Area Wilderness, 
        the condition that state land given in exchange bordering on 
        public waters must be subject to the public travel reservations 
        provided in section 92.45, may be waived by the Land Exchange 
        Board upon the recommendation of the commissioner of natural 
        resources and, if the land is Class B land, the additional 
        recommendation of the county board in which the land is located. 
           Sec. 80.  Minnesota Statutes 2004, section 94.342, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ADDITIONAL RESTRICTIONS ON STATE PARK LAND.] 
        Land specifically designated by law as a state park may not be 
        given in exchange unless the land is school trust land that is 
        exchanged for Class A or Class C land located outside a state 
        park. 
           Sec. 81.  Minnesota Statutes 2004, section 94.342, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ADDITIONAL RESTRICTIONS ON SCHOOL TRUST LAND.] 
        School trust land may be exchanged with other state Class A land 
        only if the Permanent School Fund Advisory Committee is 
        appointed as temporary trustee of the school trust land for 
        purposes of the exchange.  The committee shall provide 
        independent legal counsel to review the exchanges. 
           Sec. 82.  Minnesota Statutes 2004, section 94.343, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL EXCHANGE PROVISIONS.] Except as 
        otherwise herein provided, (a) Any Class A land may, with the 
        unanimous approval of the board, be exchanged for any publicly 
        held or privately owned land in the manner and subject to the 
        conditions herein prescribed.  Class A land may be exchanged 
        only if it meets the requirements of subdivision 3 or 5. 
           (b) The commissioner, with the approval of the board, shall 
        formulate general programs of exchange of Class A land designed 
        to serve the best interests of the state in the acquisition, 
        development, and use of lands for purposes within the province 
        of the Department of Natural Resources. 
           Sec. 83.  Minnesota Statutes 2004, section 94.343, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [VALUATION OF LAND.] The commissioner shall 
        cause the state land and the land proposed to be exchanged 
        therefor to be examined and value determined as provided in 
        section 84.0272; provided, that in exchanges with the United 
        States or any agency thereof the examination and value 
        determination may be made in the manner as the Land Exchange 
        Board may direct.  The determined values shall not be 
        conclusive, but shall be taken into consideration by the 
        commissioner and the board, together with such other matters as 
        they deem material, in determining the values for the purposes 
        of exchange. 
           Sec. 84.  Minnesota Statutes 2004, section 94.343, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EXCHANGING LAND OF SUBSTANTIALLY EQUAL VALUE 
        REQUIRED OR LOWER VALUE.] (a) Except as otherwise herein 
        provided, Class A land shall be exchanged only for land of at 
        least substantially equal value to the state, as determined by 
        the commissioner, with the approval of the board.  For the 
        purposes of such determination, the commissioner shall cause the 
        state land and the land proposed to be exchanged therefor to be 
        examined and appraised by qualified state appraisers as provided 
        in section 84.0272; provided, that in exchanges with the United 
        States or any agency thereof the examination and appraisal may 
        be made in such manner as the Land Exchange Board may direct.  
        The appraisers shall determine the fair market value of the 
        lands involved, disregarding any minimum value fixed for state 
        land by the state Constitution or by law, and shall make a 
        report thereof, together with such other pertinent information 
        respecting the use and value of the lands to the state as they 
        deem pertinent or as the commissioner or the board may require.  
        Such reports shall be filed and preserved in the same manner as 
        other reports of appraisal of state lands.  The appraised values 
        shall not be conclusive, but shall be taken into consideration 
        by the commissioner and the board, together with such other 
        matters as they deem material, in determining the values for the 
        purposes of exchange. 
           (b) For the purposes of this subdivision, "substantially 
        equal value" means: 
           (1) where the lands being exchanged are both over 100 
        acres, their values do not differ by more than ten percent; and 
           (2) in other cases, the values of the exchanged lands do 
        not differ by more than 20 percent. 
           (c) Other than school trust land, Class A land may be 
        exchanged for land of lesser value if the other party to the 
        exchange pays to the state the amount of the difference in value.
        Money received by the commissioner in such cases shall be 
        credited to the same fund as in the case of sale of the land, if 
        such a fund exists, otherwise to the special fund, if any, from 
        which the cost of the land was paid, otherwise to the general 
        fund. 
           Sec. 85.  Minnesota Statutes 2004, section 94.343, 
        subdivision 7, is amended to read: 
           Subd. 7.  [PUBLIC HEARING.] Before giving final approval to 
        any exchange of Class A land, the board commissioner shall hold 
        a public hearing thereon at the capital city or at some place 
        which it may designate in the general area where the lands 
        involved are situated; provided, that the board may direct such 
        hearing to be held in its behalf by any of its members or by the 
        commissioner or by a referee appointed by the board.  The 
        commissioner shall furnish to the auditor of each county 
        affected a notice of the hearing signed by the state auditor as 
        secretary of the board commissioner, together with a list of all 
        the lands proposed to be exchanged and situated in the county, 
        and the county auditor shall post the same in the auditor's 
        office at least two weeks before the hearing.  The county 
        auditor commissioner shall also cause a copy of the notice, 
        referring to the list of lands posted, to be published at least 
        two weeks before the hearing in a legal newspaper published in 
        the county.  The cost of publication of the notice shall be paid 
        by the state out of any moneys appropriated for the expenses of 
        the board commissioner. 
           Sec. 86.  Minnesota Statutes 2004, section 94.343, 
        subdivision 8, is amended to read: 
           Subd. 8.  [PROPOSALS FOR EXCHANGE.] The commissioner, with 
        the approval of the board, may submit a proposal for exchange of 
        Class A land to any land owner concerned.  Any land owner may 
        submit to the commissioner and the board a proposal for exchange 
        in such form as the commissioner, with the approval of the 
        board, may prescribe. 
           Sec. 87.  Minnesota Statutes 2004, section 94.343, is 
        amended by adding a subdivision to read: 
           Subd. 8a.  [FEES.] (a) When a private landowner or 
        governmental unit, except the state, presents to the 
        commissioner an offer to exchange privately or publicly held 
        land for Class A land, the private landowner or governmental 
        unit shall pay to the commissioner a determination of value fee 
        and survey fee of not less than one-half of the cost of the 
        determination of value and survey fees as determined by the 
        commissioner. 
           (b) Except as provided in paragraph (c), any payment made 
        under paragraph (a) shall be credited to the account from which 
        the expenses are paid and is appropriated for expenditure in the 
        same manner as other money in the account. 
           (c) The fees shall be refunded if the land exchange offer 
        is withdrawn by a private landowner or governmental unit before 
        the money is obligated to be spent. 
           Sec. 88.  Minnesota Statutes 2004, section 94.343, 
        subdivision 10, is amended to read: 
           Subd. 10.  [CONVEYANCE.] Conveyance of Class A land given 
        in exchange shall be made by deed executed by the commissioner 
        in the name of the state, with a certificate of unanimous 
        approval by the board appended.  All such deeds received by the 
        state shall be recorded or registered in the county in which the 
        lands lie, and all recorded deeds and certificates of registered 
        title shall be filed in the office having custody of the state 
        public land records in the Department of Natural Resources.  
           Sec. 89.  Minnesota Statutes 2004, section 94.344, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL EXCHANGE PROVISIONS.] Except as 
        otherwise provided, Class B land, by resolution of the county 
        board of the county where the land is located and with the 
        unanimous approval of the Land Exchange Board, may be exchanged 
        for any publicly held or privately owned land in the same 
        county.  Class B land may be exchanged only if it meets the 
        requirements of subdivision 3 or 5. 
           Sec. 90.  Minnesota Statutes 2004, section 94.344, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [VALUATION OF LANDS.] For an exchange involving 
        Class B land for Class A land, the value of the lands shall be 
        determined by the commissioner, with approval of the Land 
        Exchange Board.  For purposes of the determination, the 
        commissioner shall determine the value of the state and 
        tax-forfeited land proposed to be exchanged in the same manner 
        as Class A land.  For all other purposes, the county board shall 
        appraise the state land and the land in the proposed exchange in 
        the same manner as tax-forfeited land to be offered for sale.  
        The determined values shall not be conclusive, but shall be 
        taken into consideration, together with such other matters as 
        may be deemed material, in determining the values for the 
        purposes of exchange. 
           Sec. 91.  Minnesota Statutes 2004, section 94.344, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EXCHANGING LAND OF SUBSTANTIALLY EQUAL VALUE 
        REQUIRED OR LOWER VALUE.] (a) Except as otherwise provided, 
        Class B land may be exchanged only for land of substantially 
        equal value or greater value to the state, as determined by the 
        county board, with the approval of the commissioner and the Land 
        Exchange Board.  For an exchange involving Class B land for 
        Class A or Class C land, the value of the lands shall be 
        determined by the commissioner, with approval of the Land 
        Exchange Board.  For purposes of the determination, the 
        commissioner shall appraise the state and tax-forfeited land 
        proposed to be exchanged in the same manner as Class A land.  
        For all other purposes, the county board shall appraise the 
        state land and the land in the proposed exchange in the same 
        manner as tax-forfeited land to be offered for sale.  The 
        appraised values shall not be conclusive, but shall be taken 
        into consideration, together with such other matters as may be 
        deemed material, in determining the values for the purposes of 
        exchange. 
           (b) For the purposes of this subdivision, "substantially 
        equal value" means:  
           (1) where the lands being exchanged are both over 100 
        acres, their values do not differ by more than ten percent; and 
           (2) in other cases, the values of the exchanged lands do 
        not differ by more than 20 percent.  
           (c) Class B land may be exchanged for land of lesser value 
        if the other party to the exchange pays to the state the amount 
        of the difference in value.  Money received by the county 
        treasurer shall be disposed of in like manner as the proceeds of 
        a sale of tax-forfeited land. 
           Sec. 92.  Minnesota Statutes 2004, section 94.344, 
        subdivision 5, is amended to read: 
           Subd. 5.  [OBTAINING EXCHANGING LAND OF GREATER VALUE.] (a) 
        Class B land may be exchanged for land of greater value only in 
        case if the other party to the exchange shall waive waives 
        payment for the difference.  
           (b) Except for Class A school trust land, Class B land may 
        be exchanged for Class A land of greater value if the county 
        pays to the state the difference in value. 
           (c) Class B land may be exchanged for United States-owned 
        land of greater value if the county agrees to pay the difference 
        in value. 
           Sec. 93.  Minnesota Statutes 2004, section 94.344, 
        subdivision 8, is amended to read: 
           Subd. 8.  [PROPOSALS FOR EXCHANGE.] By direction of the 
        county board, the county auditor may submit a proposal for 
        exchange of Class B land to any land owner concerned.  Any land 
        owner may file with the county auditor a proposal for exchange 
        for consideration by the county board.  Forms for such proposals 
        shall be prescribed by the commissioner.  
           Sec. 94.  Minnesota Statutes 2004, section 94.344, 
        subdivision 10, is amended to read: 
           Subd. 10.  [APPROVAL; CONVEYANCE.] After approval by the 
        county board, every proposal for the exchange of Class B land 
        shall be transmitted to the commissioner in such form and with 
        such information as the commissioner may prescribe for 
        consideration by the commissioner and by the board.  The county 
        attorney's opinion on the title, with the abstract and other 
        evidence of title, if any, shall accompany the proposal.  If the 
        proposal be is approved by the commissioner and the board and 
        the title be is approved by the attorney general, the same shall 
        be certified to the commissioner of revenue, who shall execute a 
        deed in the name of the state conveying the land given in 
        exchange, with a certificate of unanimous approval by the board 
        appended, and transmit the deed to the county auditor to be 
        delivered upon receipt of a deed conveying to the state the land 
        received in exchange, approved by the county attorney; provided, 
        that if any amount is due the state under the terms of the 
        exchange, the deed from the state shall not be executed or 
        delivered until such amount is paid in full and a certificate 
        thereof by the county auditor is filed with the commissioner of 
        revenue.  The county auditor shall cause all deeds received by 
        the state in such exchanges to be recorded or registered, and 
        thereafter shall file the deeds or the certificates of 
        registered title in the auditor's office.  If the land received 
        by the county in the exchange is either Class A or Class C land, 
        the commissioner of revenue shall deliver the deed for the Class 
        B land to the commissioner of natural resources and following 
        the recording of this deed, the commissioner of natural 
        resources shall deliver to the county auditor a deed conveying 
        the Class A or Class C land to the county auditor to be recorded 
        or registered, and afterwards file the deeds or the certificate 
        of registered title in the auditor's office.  
           Sec. 95.  Minnesota Statutes 2004, section 97A.055, 
        subdivision 4b, is amended to read: 
           Subd. 4b.  [CITIZEN OVERSIGHT SUBCOMMITTEES.] (a) The 
        commissioner shall appoint subcommittees of affected persons to 
        review the reports prepared under subdivision 4; review the 
        proposed work plans and budgets for the coming year; propose 
        changes in policies, activities, and revenue enhancements or 
        reductions; review other relevant information; and make 
        recommendations to the legislature and the commissioner for 
        improvements in the management and use of money in the game and 
        fish fund. 
           (b) The commissioner shall appoint the following 
        subcommittees, each comprised of at least three affected persons:
           (1) a Fisheries Operations Subcommittee to review fisheries 
        funding, excluding activities related to trout and salmon stamp 
        funding; 
           (2) a Wildlife Operations Subcommittee to review wildlife 
        funding, excluding activities related to migratory waterfowl, 
        pheasant, and turkey stamp funding and excluding review of the 
        amounts available under section 97A.075, subdivision 1, 
        paragraphs (b) and (c); 
           (3) a Big Game Subcommittee to review the report required 
        in subdivision 4, paragraph (a), clause (2); 
           (4) an Ecological Services Operations Subcommittee to 
        review ecological services funding; 
           (5) a subcommittee to review game and fish fund funding of 
        enforcement, support services, and Department of Natural 
        Resources administration; 
           (6) a subcommittee to review the trout and salmon stamp 
        report and address funding issues related to trout and salmon; 
           (7) a subcommittee to review the report on the migratory 
        waterfowl stamp and address funding issues related to migratory 
        waterfowl; 
           (8) a subcommittee to review the report on the pheasant 
        stamp and address funding issues related to pheasants; and 
           (9) a subcommittee to review the report on the turkey stamp 
        and address funding issues related to wild turkeys. 
           (c) The chairs of each of the subcommittees shall form a 
        Budgetary Oversight Committee to coordinate the integration of 
        the subcommittee reports into an annual report to the 
        legislature; recommend changes on a broad level in policies, 
        activities, and revenue enhancements or reductions; provide a 
        forum to address issues that transcend the subcommittees; and 
        submit a report for any subcommittee that fails to submit its 
        report in a timely manner. 
           (d) The Budgetary Oversight Committee shall develop 
        recommendations for a biennial budget plan and report for 
        expenditures on game and fish activities.  By August 15 of each 
        even-numbered year, the committee shall submit the budget plan 
        recommendations to the commissioner and to the senate and house 
        committees with jurisdiction over natural resources finance. 
           (e) Each subcommittee shall choose its own chair, except 
        that the chair of the Budgetary Oversight Committee shall be 
        appointed by the commissioner and may not be the chair of any of 
        the subcommittees. 
           (f) The Budgetary Oversight Committee must make 
        recommendations to the commissioner and to the senate and house 
        committees with jurisdiction over natural resources finance for 
        outcome goals from expenditures. 
           (g) Notwithstanding section 15.059, subdivision 5, or other 
        law to the contrary, the Budgetary Oversight Committee and 
        subcommittees do not expire until June 30, 2005 2010. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 96.  Minnesota Statutes 2004, section 97A.061, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICABILITY; AMOUNT.] (a) The 
        commissioner shall annually make a payment to each county having 
        public hunting areas and game refuges.  Money to make the 
        payments is annually appropriated for that purpose from the 
        general fund.  Except as provided in paragraph (b), this section 
        does not apply to state trust fund land and other state land not 
        purchased for game refuge or public hunting purposes.  Except as 
        provided in paragraph (b), the payment shall be the greatest of: 
           (1) 35 percent of the gross receipts from all special use 
        permits and leases of land acquired for public hunting and game 
        refuges; 
           (2) 50 cents per acre on land purchased actually used for 
        public hunting or game refuges; or 
           (3) three-fourths of one percent of the appraised value of 
        purchased land actually used for public hunting and game refuges.
           (b) The payment shall be 50 percent of the dollar amount 
        adjusted for inflation as determined under section 477A.12, 
        subdivision 1, paragraph (a), clause (1), multiplied by the 
        number of acres of land in the county that are owned by another 
        state agency for military purposes and designated as a game 
        refuge under section 97A.085. 
           (c) The payment must be reduced by the amount paid under 
        subdivision 3 for croplands managed for wild geese.  
           (c) (d) The appraised value is the purchase price for five 
        years after acquisition.  The appraised value shall be 
        determined by the county assessor every five years after 
        acquisition. 
           [EFFECTIVE DATE.] This section is effective for aids paid 
        in calendar year 2007 and thereafter. 
           Sec. 97.  Minnesota Statutes 2004, section 97A.075, 
        subdivision 3, is amended to read: 
           Subd. 3.  [TROUT AND SALMON STAMP.] (a) Ninety percent of 
        the revenue from trout and salmon stamps must be credited to the 
        trout and salmon management account.  Money in the account may 
        be used only for: 
           (1) the development, restoration, maintenance, improvement, 
        protection, and preservation of habitat for trout and salmon in 
        trout streams and lakes, including, but not limited to, 
        evaluating habitat; stabilizing eroding stream banks; adding 
        fish cover; modifying stream channels; managing vegetation to 
        protect, shade, or reduce runoff on stream banks; and purchasing 
        equipment to accomplish these tasks; 
           (2) rearing of trout and salmon and, including utility and 
        service costs associated with coldwater hatchery buildings and 
        systems; stocking of trout and salmon in streams and lakes and 
        Lake Superior; and monitoring and evaluating stocked trout and 
        salmon; 
           (3) acquisition of easements and fee title along trout 
        waters; 
           (4) identifying easement and fee title areas along trout 
        waters; and 
           (5) research and special management projects on trout 
        streams, trout lakes, and Lake Superior and the anadromous 
        portions of its tributaries.  
           (b) Money in the account may not be used for costs unless 
        they are directly related to a specific parcel of land or body 
        of water under paragraph (a) or, to specific fish rearing 
        activities under paragraph (a), clause (2), or for costs 
        associated with supplies and equipment to implement trout and 
        salmon management activities under paragraph (a). 
           Sec. 98.  Minnesota Statutes 2004, section 97A.135, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [DISPOSAL OF LAND IN WILDLIFE MANAGEMENT AREAS.] 
        (a) The commissioner may sell or exchange land in a wildlife 
        management area authorized by designation under section 86A.07, 
        subdivision 3, 97A.133, or 97A.145 if the commissioner vacates 
        the designation before the sale or exchange in accordance with 
        this subdivision.  The designation may be vacated only if the 
        commissioner finds, after a public hearing, that the disposal of 
        the land is in the public interest. 
           (b) A sale under this subdivision is subject to sections 
        94.09 to 94.16.  An exchange under this subdivision is subject 
        to sections 94.341 to 94.348 94.347. 
           (c) Revenue received from a sale authorized under paragraph 
        (a) is appropriated to the commissioner for acquisition of 
        replacement wildlife management lands. 
           (d) Land acquired by the commissioner under this 
        subdivision must meet the criteria in section 86A.05, 
        subdivision 8, and as soon as possible after the acquisition 
        must be designated as a wildlife management area under section 
        86A.07, subdivision 3, 97A.133, or 97A.145. 
           (e) In acquiring land under this subdivision, the 
        commissioner must give priority to land within the same 
        geographic region of the state as the land conveyed. 
           Sec. 99.  Minnesota Statutes 2004, section 97A.4742, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ANNUAL REPORT.] By December 15 each year, the 
        commissioner shall submit a report to the legislative committees 
        having jurisdiction over environment and natural resources 
        appropriations and environment and natural resources policy.  
        The report shall state the amount of revenue received in and 
        expenditures made from revenue transferred from the lifetime 
        fish and wildlife trust fund to the game and fish fund and shall 
        describe projects funded, locations of the projects, and results 
        and benefits from the projects.  The report may be included in 
        the game and fish fund report required by section 97A.055, 
        subdivision 4.  The commissioner shall make the annual report 
        available to the public. 
           Sec. 100.  Minnesota Statutes 2004, section 97A.475, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NONRESIDENT HUNTING.] Fees for the following 
        licenses, to be issued to nonresidents, are: 
           (1) to take small game, $73; 
           (2) to take deer with firearms, $135; 
           (3) to take deer by archery, the greater of: 
           (i) an amount equal to the total amount of license fees and 
        surcharges charged to a Minnesota resident to take deer by 
        archery in the person's state or province of residence; or 
           (ii) $135; 
           (4) to take bear, $195; 
           (5) to take turkey, $73; 
           (6) to take raccoon, bobcat, fox, or coyote, or lynx, $155; 
           (7) to take antlered deer in more than one zone, $270; and 
           (8) to take Canada geese during a special season, $4. 
           Sec. 101.  Minnesota Statutes 2004, section 97A.482, is 
        amended to read: 
           97A.482 [LICENSE APPLICATIONS; COLLECTION OF SOCIAL 
        SECURITY NUMBERS.] 
           (a) All applicants for individual noncommercial game and 
        fish licenses under this chapter and chapters 97B and 97C must 
        include the applicant's social security number on the license 
        application.  If an applicant does not have a Social Security 
        number, the applicant must certify that the applicant does not 
        have a Social Security number. 
           (b) The Social Security numbers collected by the 
        commissioner on game and fish license applications are private 
        data under section 13.355, subdivision 1, and must be provided 
        by the commissioner to the commissioner of human services for 
        child support enforcement purposes.  Title IV-D of the Social 
        Security Act, United States Code, title 42, section 666(a)(13), 
        requires the collection of Social Security numbers on game and 
        fish license applications for child support enforcement purposes.
           (c) The commissioners of human services and natural 
        resources shall request a waiver from the secretary of health 
        and human services to exclude any applicant under the age of 16 
        from the requirement under this section and under cross-country 
        ski licensing sections to provide the applicant's Social 
        Security number.  If a waiver is granted, this section will be 
        so amended effective January 1, 2006, or upon the effective date 
        of the waiver, whichever is later. 
           Sec. 102.  Minnesota Statutes 2004, section 97A.485, 
        subdivision 6, is amended to read: 
           Subd. 6.  [LICENSES TO BE SOLD AND ISSUING FEES.] (a) 
        Persons authorized to sell licenses under this section must 
        issue the following licenses for the license fee and the 
        following issuing fees:  
           (1) to take deer or bear with firearms and by archery, the 
        issuing fee is $1; 
           (2) Minnesota sporting, the issuing fee is $1; and 
           (3) to take small game, to take fish by angling or by 
        spearing, and to trap fur-bearing animals, the issuing fee is 
        $1; 
           (4) for a trout and salmon stamp that is not issued 
        simultaneously with an angling or sporting a license, an issuing 
        fee of 50 cents may be charged at the discretion of the 
        authorized seller; 
           (5) for stamps other than a trout and salmon stamp, and for 
        a special season Canada goose license issued simultaneously with 
        a license, there is no fee; and 
           (6) for licenses, seals, tags, or coupons issued without a 
        fee under section 97A.441 or 97A.465, there is no an issuing fee 
        of 50 cents may be charged at the discretion of the authorized 
        seller; 
           (7) for lifetime licenses, there is no fee; and 
           (8) for all other licenses, permits, renewals, or 
        applications or any other transaction through the electronic 
        licensing system under this chapter or any other chapter when an 
        issuing fee is not specified, an issuing fee of 50 cents may be 
        charged at the discretion of the authorized seller. 
           (b) An issuing fee may not be collected for issuance of a 
        trout and salmon stamp if a stamp validation is issued 
        simultaneously with the related angling or sporting license.  
        Only one issuing fee may be collected when selling more than one 
        trout and salmon stamp in the same transaction after the end of 
        the season for which the stamp was issued. 
           (c) The agent shall keep the issuing fee as a commission 
        for selling the licenses.  
           (d) The commissioner shall collect the issuing fee on 
        licenses sold by the commissioner. 
           (e) A license, except stamps, must state the amount of the 
        issuing fee and that the issuing fee is kept by the seller as a 
        commission for selling the licenses. 
           (f) For duplicate licenses, including licenses issued 
        without a fee, the issuing fees are: 
           (1) for licenses to take big game, 75 cents; and 
           (2) for other licenses, 50 cents. 
           (g) The commissioner may issue one-day angling licenses in 
        books of ten licenses each to fishing guides operating charter 
        boats upon receipt of payment of all license fees, excluding the 
        issuing fee required under this section.  Copies of sold and 
        unsold licenses shall be returned to the commissioner.  The 
        commissioner shall refund the charter boat captain for the 
        license fees of all unsold licenses.  Copies of sold licenses 
        shall be maintained by the commissioner for one year. 
           Sec. 103.  Minnesota Statutes 2004, section 97A.485, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ELECTRONIC LICENSING SYSTEM COMMISSION.] The 
        commissioner shall retain for the operation of the electronic 
        licensing system a commission of 4.7 percent of the commission 
        established under section 84.027, subdivision 15, and issuing 
        fees collected by the commissioner on all license fees 
        collected, excluding: 
           (1) the small game surcharge; and 
           (2) all issuing fees; and 
           (3) $2.50 of the license fee for the licenses in section 
        97A.475, subdivisions 6, clauses (1), (2), and (4), 7, 8, 12, 
        and 13. 
           [EFFECTIVE DATE.] This section is effective July 6, 2005. 
           Sec. 104.  Minnesota Statutes 2004, section 97A.551, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [TAGGING AND REGISTRATION.] The commissioner may, 
        by rule, require persons taking, possessing, and transporting 
        certain species of fish to tag the fish with a special fish 
        management tag and may require registration of tagged fish.  A 
        person may not possess or transport a fish species taken in the 
        state for which a special fish management tag is required unless 
        a tag is attached to the fish in a manner prescribed by the 
        commissioner.  The commissioner shall prescribe the manner of 
        issuance and the type of tag as authorized under section 
        97C.087.  The tag must be attached to the fish as prescribed by 
        the commissioner immediately upon reducing the fish to 
        possession and must remain attached to the fish until the fish 
        is processed or consumed.  Species for which a special fish 
        management tag is required must be transported undressed. 
           Sec. 105.  Minnesota Statutes 2004, section 97B.005, 
        subdivision 1, as amended by Laws 2005, chapter 146, section 21, 
        is amended to read: 
           Subdivision 1.  [FIELD TRAINING.] A person may not train 
        hunting dogs afield on public lands administered by the 
        commissioner from April 16 to July 14 except as specifically 
        authorized by permit or rule. 
           Sec. 106.  Minnesota Statutes 2004, section 97B.015, 
        subdivision 7, is amended to read: 
           Subd. 7.  [FEE FOR DUPLICATE CERTIFICATE.] The commissioner 
        shall collect a fee, to include a $1 issuing fee for licensing 
        agents, for issuing a duplicate firearms safety certificate.  
        The commissioner shall establish a fee that neither 
        significantly overrecovers nor underrecovers costs, including 
        overhead costs, involved in providing the service.  The fee is 
        not subject to the rulemaking provisions of chapter 14 and 
        section 14.386 does not apply.  The commissioner may establish 
        the fee notwithstanding section 16A.1283.  The duplicate 
        certificate fees, except for the issuing fee for licensing 
        agents under this subdivision, shall be deposited in the game 
        and fish fund and, except for the electronic licensing system 
        commission established by the commissioner under section 84.027, 
        subdivision 15, and issuing fees collected by the commissioner, 
        are appropriated annually to the Enforcement Division of the 
        Department of Natural Resources for the administration of the 
        firearm safety course program.  
           [EFFECTIVE DATE.] This section is effective July 6, 2005. 
           Sec. 107.  Minnesota Statutes 2004, section 97B.020, is 
        amended to read: 
           97B.020 [FIREARMS SAFETY CERTIFICATE REQUIRED.] 
           (a) Except as provided in this section and section 97A.451, 
        subdivision 3a, a person born after December 31, 1979, may not 
        obtain an annual license to take wild animals by firearms unless 
        the person has:  
           (1) a firearms safety certificate or equivalent 
        certificate,; 
           (2) a driver's license or identification card with a valid 
        firearms safety qualification indicator issued under section 
        171.07, subdivision 13,; 
           (3) a previous hunting license, with a valid firearms 
        safety qualification indicator; or 
           (4) other evidence indicating that the person has completed 
        in this state or in another state a hunter safety course 
        recognized by the department under a reciprocity agreement or 
        certified by the department as substantially similar.  
           (b) A person who is on active duty and has successfully 
        completed basic training in the United States armed forces, 
        reserve component, or National Guard may obtain a hunting 
        license or approval authorizing hunting regardless of whether 
        the person is issued a firearms safety certificate. 
           (b) (c) A person born after December 31, 1979, may not use 
        a lifetime license to take wild animals by firearms, unless the 
        person meets the requirements for obtaining an annual license 
        under paragraph (a) or (b). 
           Sec. 108.  Minnesota Statutes 2004, section 97B.025, as 
        amended by Laws 2005, chapter 146, section 26, is amended to 
        read: 
           97B.025 [HUNTER AND TRAPPER EDUCATION.] 
           (a) The commissioner may establish education courses for 
        hunters.  The commissioner shall collect a fee from each person 
        attending a course.  A fee, to include a $1 issuing fee for 
        licensing agents, shall be collected for issuing a duplicate 
        certificate.  The commissioner shall establish the fees in a 
        manner that neither significantly overrecovers nor underrecovers 
        costs, including overhead costs, involved in providing the 
        services.  The fees are not subject to the rulemaking provisions 
        of chapter 14 and section 14.386 does not apply.  The 
        commissioner may establish the fees notwithstanding section 
        16A.1283.  The fees, except for the issuing fee for licensing 
        agents under this subdivision, shall be deposited in the game 
        and fish fund and the amount thereof, except for the electronic 
        licensing system commission established by the commissioner 
        under section 84.027, subdivision 15, is appropriated annually 
        to the Enforcement Division of the Department of Natural 
        Resources for the administration of the program.  In addition to 
        the fee established by the commissioner for each course, 
        instructors may charge each person up to the established fee 
        amount for class materials and expenses.  School districts may 
        cooperate with the commissioner and volunteer instructors to 
        provide space for the classroom portion of the training. 
           (b) The commissioner shall enter into an agreement with a 
        statewide nonprofit trappers association to conduct a trapper 
        education program.  At a minimum, the program must include at 
        least six hours of classroom, electronic, or correspondence 
        instruction and in the field training.  The program must include 
        a review of state trapping laws and regulations, trapping 
        ethics, the setting and tending of traps and snares, tagging and 
        registration requirements, and the preparation of pelts.  The 
        association shall issue a certificate to persons who complete 
        the program.  The association shall be responsible for all costs 
        of conducting the education program, and shall not charge any 
        fee for attending the course. 
           [EFFECTIVE DATE.] This section is effective July 6, 2005. 
           Sec. 109.  Minnesota Statutes 2004, section 97B.601, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NONRESIDENTS:  RACCOON, BOBCAT, FOX, COYOTE, 
        CANADA LYNX.] A nonresident may not take raccoon, bobcat, fox, 
        or coyote, or Canada lynx by firearms without a separate license 
        to take that animal in addition to a small game license. 
           Sec. 110.  Minnesota Statutes 2004, section 97B.605, is 
        amended to read: 
           97B.605 [COMMISSIONER MAY RESTRICT TAKING OF CERTAIN SMALL 
        GAME ANIMALS.] 
           The commissioner may prescribe restrictions on and 
        designate areas where gray and fox squirrels, cottontail and 
        jack rabbits, snowshoe hare, raccoon, lynx, bobcat, red fox and 
        gray fox, fisher, pine marten, opossum, and badger may be taken 
        and possessed. 
           Sec. 111.  Minnesota Statutes 2004, section 97B.625, as 
        amended by Laws 2005, chapter 146, section 34, is amended to 
        read: 
           97B.625 [LYNX AND BOBCAT.] 
           Subdivision 1.  [SEASON.] Based upon population estimates, 
        the commissioner may set the open season for lynx or bobcat. 
           Subd. 2.  [USE OF A SNARE.] A person may use a snare to 
        take lynx or bobcat, as prescribed by the commissioner, without 
        a permit. 
           Sec. 112.  Minnesota Statutes 2004, section 97B.641, is 
        amended to read: 
           97B.641 [COUGAR, LYNX, AND WOLVERINE.] 
           There is no open season for cougar, lynx, or wolverine. 
           Sec. 113.  Minnesota Statutes 2004, section 97B.655, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [OWNERS AND OCCUPANTS MAY TAKE CERTAIN 
        ANIMALS.] A person may take mink, squirrel, rabbit, hare, 
        raccoon, lynx, bobcat, fox, opossum, muskrat, or beaver on land 
        owned or occupied by the person where the animal is causing 
        damage.  The person may take the animal without a license and in 
        any manner except by poison, or artificial lights in the closed 
        season.  Raccoons may be taken under this subdivision with 
        artificial lights during open season.  A person that kills mink, 
        raccoon, lynx, bobcat, fox, opossum, muskrat, or beaver under 
        this subdivision must notify a conservation officer or employee 
        of the Wildlife Division within 24 hours after the animal is 
        killed. 
           Sec. 114.  Minnesota Statutes 2004, section 97C.085, is 
        amended to read: 
           97C.085 [PERMIT REQUIRED FOR TAGGING FISH.] 
           A person may not tag or otherwise mark a live fish for 
        identification without a permit from the commissioner, except 
        for special fish management tags as authorized under section 
        97A.551. 
           Sec. 115.  [97C.087] [SPECIAL FISH MANAGEMENT TAGS.] 
           Subdivision 1.  [TAGS TO BE ISSUED.] If the commissioner 
        determines it is necessary to require that a species of fish be 
        tagged with a special fish management tag, the commissioner 
        shall prescribe, by rule, the species to be tagged, tagging 
        procedures, and eligibility requirements. 
           Subd. 2.  [APPLICATION FOR TAG.] Application for special 
        fish management tags must be accompanied by a $5, nonrefundable 
        application fee for each tag.  A person may not make more than 
        one tag application each year.  If a person makes more than one 
        application, the person is ineligible for a special fish 
        management tag for that season after determination by the 
        commissioner, without a hearing.  
           Sec. 116.  Minnesota Statutes 2004, section 103B.101, 
        subdivision 9, is amended to read: 
           Subd. 9.  [POWERS AND DUTIES.] In addition to the powers 
        and duties prescribed elsewhere, the board shall: 
           (1) coordinate the water and soil resources planning 
        activities of counties, soil and water conservation districts, 
        watershed districts, watershed management organizations, and any 
        other local units of government through its various authorities 
        for approval of local plans, administration of state grants, and 
        by other means as may be appropriate; 
           (2) facilitate communication and coordination among state 
        agencies in cooperation with the Environmental Quality Board, 
        and between state and local units of government, in order to 
        make the expertise and resources of state agencies involved in 
        water and soil resources management available to the local units 
        of government to the greatest extent possible; 
           (3) coordinate state and local interests with respect to 
        the study in southwestern Minnesota under United States Code, 
        title 16, section 1009; 
           (4) develop information and education programs designed to 
        increase awareness of local water and soil resources problems 
        and awareness of opportunities for local government involvement 
        in preventing or solving them; 
           (5) provide a forum for the discussion of local issues and 
        opportunities relating to water and soil resources management; 
           (6) adopt an annual budget and work program that integrate 
        the various functions and responsibilities assigned to it by 
        law; and 
           (7) report to the governor and the legislature by October 
        15 of each even-numbered year with an assessment of board 
        programs and recommendations for any program changes and board 
        membership changes necessary to improve state and local efforts 
        in water and soil resources management. 
           The board may accept grants, gifts, donations, or 
        contributions in money, services, materials, or otherwise from 
        the United States, a state agency, or other source to achieve an 
        authorized purpose.  The board may enter into a contract or 
        agreement necessary or appropriate to accomplish the transfer. 
        The board may receive and expend money to acquire conservation 
        easements, as defined in chapter 84C, on behalf of the state and 
        federal government consistent with the Camp Ripley's Army 
        Compatible Use Buffer Project. 
           Any money received is hereby appropriated and dedicated for 
        the purpose for which it is granted. 
           Sec. 117.  Minnesota Statutes 2004, section 103E.081, is 
        amended by adding a subdivision to read: 
           Subd 2a.  [PLANTING TREES OVER PUBLIC TILE.] A person must 
        not knowingly plant trees over a public drain tile, unless the 
        person planting the trees receives permission from the drainage 
        authority. 
           Sec. 118.  Minnesota Statutes 2004, section 103E.081, is 
        amended by adding a subdivision to read: 
           Subd. 2b.  [PLANTING TREES OVER PRIVATE TILE.] A person 
        must not knowingly plant trees over a private drain tile that 
        provides for the drainage of land owned or leased by another 
        person, unless the person planting the trees receives permission 
        from all persons who receive drainage benefits from the drain 
        tile. 
           Sec. 119.  Minnesota Statutes 2004, section 103F.535, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RESERVATION OF MARGINAL LAND AND 
        WETLANDS.] (a) Marginal land and wetlands are withdrawn from 
        sale or exchange unless: 
           (1) notice of the existence of the nonforested marginal 
        land or wetlands, in a form prescribed by the Board of Water and 
        Soil Resources, is provided to prospective purchasers; and 
           (2) the deed contains a restrictive covenant, in a form 
        prescribed by the Board of Water and Soil Resources, that 
        precludes enrollment of the land in a state-funded program 
        providing compensation for conservation of marginal land or 
        wetlands. 
           (b) This section does not apply to transfers of land by the 
        Board of Water and Soil Resources to correct errors in legal 
        descriptions under section 103F.515, subdivision 8, or to 
        transfers by the commissioner of natural resources for:  
           (1) land that is currently in nonagricultural commercial 
        use if a restrictive covenant would interfere with the 
        commercial use; 
           (2) land in platted subdivisions; 
           (3) conveyances of land to correct errors in legal 
        descriptions under section 84.0273; 
           (4) exchanges of nonagricultural land with the federal 
        government, or exchanges of Class A, Class B, and Class C 
        riparian nonagricultural land with local units of government 
        under sections 94.342, 94.343, and 94.344, and 94.349; 
           (5) land transferred to political subdivisions for public 
        purposes under sections 84.027, subdivision 10, and 94.10; and 
           (6) land not needed for trail purposes that is sold to 
        adjacent property owners and lease holders under section 85.015, 
        subdivision 1, paragraph (b).  
           (c) This section does not apply to transfers of land by the 
        commissioner of administration or transportation or by the 
        Minnesota Housing Finance Agency, or to transfers of 
        tax-forfeited land under chapter 282 if:  
           (1) the land is in platted subdivisions; or 
           (2) the conveyance is a transfer to correct errors in legal 
        descriptions. 
           (d) This section does not apply to transfers of land by the 
        commissioner of administration or by the Minnesota Housing 
        Finance Agency for: 
           (1) land that is currently in nonagricultural commercial 
        use if a restrictive covenant would interfere with the 
        commercial use; or 
           (2) land transferred to political subdivisions for public 
        purposes under sections 84.027, subdivision 10, and 94.10. 
           Sec. 120.  [103F.950] [BEAVER DAMAGE CONTROL GRANTS.] 
           Subdivision 1.  [ESTABLISHMENT.] The Board of Water and 
        Soil Resources shall establish a beaver damage control grant 
        program to provide grants for the control of beaver activities 
        causing damage to public waters, roads, and ditches and adjacent 
        private property.  The grants may be made to: 
           (1) a joint powers board established under section 471.59 
        by two or more governmental units; 
           (2) soil and water conservation districts; and 
           (3) Indian tribal governments. 
           Subd. 2.  [GRANT AMOUNT.] The board may provide up to 50 
        percent of the costs of implementing a beaver damage control 
        program by a joint powers board. 
           Subd. 3.  [AWARDING OF GRANTS.] Applications for grants 
        must be made to the board on forms prescribed by the board.  The 
        board shall consult with town supervisors and county 
        commissioners representing different areas of the state in 
        developing the application form.  A joint powers board seeking a 
        grant may be required to supply information on the beaver 
        control program it has adopted, the extent of the problem in the 
        geographic area covered by the joint powers agreement, and the 
        ability of the joint powers board to match the state grant.  The 
        board may prioritize the grant applications based upon the 
        information requested as part of the grant application. 
           Subd. 4.  [REPORT.] (a) Within one year after receiving a 
        grant under this section, a joint powers board must report to 
        the Board of Water and Soil Resources on the joint powers 
        board's efforts to control beaver in the area. 
           (b) By December 15 of each even-numbered year, the board 
        shall report to the senate and house environment and natural 
        resources policy and finance committees on the efforts under 
        this section to control beaver. 
           Sec. 121.  Minnesota Statutes 2004, section 103G.271, 
        subdivision 6, is amended to read: 
           Subd. 6.  [WATER USE PERMIT PROCESSING FEE.] (a) Except as 
        described in paragraphs (b) to (f), a water use permit 
        processing fee must be prescribed by the commissioner in 
        accordance with the schedule of fees in this subdivision for 
        each water use permit in force at any time during the year.  The 
        schedule is as follows, with the stated fee in each clause 
        applied to the total amount appropriated: 
           (1) $101 for amounts not exceeding 50,000,000 gallons per 
        year; 
           (2) $3 per 1,000,000 gallons for amounts greater than 
        50,000,000 gallons but less than 100,000,000 gallons per year; 
           (3) $3.50 per 1,000,000 gallons for amounts greater than 
        100,000,000 gallons but less than 150,000,000 gallons per year; 
           (4) $4 per 1,000,000 gallons for amounts greater than 
        150,000,000 gallons but less than 200,000,000 gallons per year; 
           (5) $4.50 per 1,000,000 gallons for amounts greater than 
        200,000,000 gallons but less than 250,000,000 gallons per year; 
           (6) $5 per 1,000,000 gallons for amounts greater than 
        250,000,000 gallons but less than 300,000,000 gallons per year; 
           (7) $5.50 per 1,000,000 gallons for amounts greater than 
        300,000,000 gallons but less than 350,000,000 gallons per year; 
           (8) $6 per 1,000,000 gallons for amounts greater than 
        350,000,000 gallons but less than 400,000,000 gallons per year; 
           (9) $6.50 per 1,000,000 gallons for amounts greater than 
        400,000,000 gallons but less than 450,000,000 gallons per year; 
           (10) $7 per 1,000,000 gallons for amounts greater than 
        450,000,000 gallons but less than 500,000,000 gallons per year; 
        and 
           (11) $7.50 per 1,000,000 gallons for amounts greater than 
        500,000,000 gallons per year. 
           (b) For once-through cooling systems, a water use 
        processing fee must be prescribed by the commissioner in 
        accordance with the following schedule of fees for each water 
        use permit in force at any time during the year: 
           (1) for nonprofit corporations and school districts, $150 
        per 1,000,000 gallons; and 
           (2) for all other users, $200 $300 per 1,000,000 gallons. 
           (c) The fee is payable based on the amount of water 
        appropriated during the year and, except as provided in 
        paragraph (f), the minimum fee is $100.  
           (d) For water use processing fees other than once-through 
        cooling systems:  
           (1) the fee for a city of the first class may not exceed 
        $250,000 per year; 
           (2) the fee for other entities for any permitted use may 
        not exceed: 
           (i) $50,000 per year for an entity holding three or fewer 
        permits; 
           (ii) $75,000 per year for an entity holding four or five 
        permits; 
           (iii) $250,000 per year for an entity holding more than 
        five permits; 
           (3) the fee for agricultural irrigation may not exceed $750 
        per year; 
           (4) the fee for a municipality that furnishes electric 
        service and cogenerates steam for home heating may not exceed 
        $10,000 for its permit for water use related to the cogeneration 
        of electricity and steam; and 
           (5) no fee is required for a project involving the 
        appropriation of surface water to prevent flood damage or to 
        remove flood waters during a period of flooding, as determined 
        by the commissioner.  
           (e) Failure to pay the fee is sufficient cause for revoking 
        a permit.  A penalty of two percent per month calculated from 
        the original due date must be imposed on the unpaid balance of 
        fees remaining 30 days after the sending of a second notice of 
        fees due.  A fee may not be imposed on an agency, as defined in 
        section 16B.01, subdivision 2, or federal governmental agency 
        holding a water appropriation permit. 
           (f) The minimum water use processing fee for a permit 
        issued for irrigation of agricultural land is $20 for years in 
        which: 
           (1) there is no appropriation of water under the permit; or 
           (2) the permit is suspended for more than seven consecutive 
        days between May 1 and October 1. 
           (g) A surcharge of $20 per million gallons in addition to 
        the fee prescribed in paragraph (a) shall be applied to the 
        volume of water used in June, July, and August that exceeds the 
        volume of water used in January for municipal water use, 
        irrigation of golf courses, and landscape irrigation. 
           Sec. 122.  Minnesota Statutes 2004, section 103G.301, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PERMIT APPLICATION FEES.] (a) An application for 
        a permit authorized under this chapter, and each request to 
        amend or transfer an existing permit, must be accompanied by a 
        permit application fee to defray the costs of receiving, 
        recording, and processing the application or request to amend or 
        transfer.  
           (b) The fee to apply for a permit to appropriate water, a 
        permit to construct or repair a dam that is subject to dam 
        safety inspection, or a state general permit or to apply for the 
        state water bank program is $75 $150.  The application fee for a 
        permit to work in public waters or to divert waters for mining 
        must be at least $75 $150, but not more than $500 $1,000, 
        according to a schedule of fees adopted under section 16A.1285. 
           Sec. 123.  Minnesota Statutes 2004, section 103G.615, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FEES.] (a) The commissioner shall establish a 
        fee schedule for permits to control or harvest aquatic plants 
        other than wild rice.  The fees must be set by rule, and section 
        16A.1283 does not apply.  The fees may not exceed $750 per 
        permit based upon the cost of receiving, processing, analyzing, 
        and issuing the permit, and additional costs incurred after the 
        application to inspect and monitor the activities authorized by 
        the permit, and enforce aquatic plant management rules and 
        permit requirements. 
           (b) The fee for a permit for the control of rooted aquatic 
        vegetation is $35 for each contiguous parcel of shoreline owned 
        by an owner.  This fee may not be charged for permits issued in 
        connection with purple loosestrife control or lakewide Eurasian 
        water milfoil control programs. 
           (c) A fee may not be charged to the state or a federal 
        governmental agency applying for a permit. 
           (d) The money received for the permits under this 
        subdivision shall be deposited in the treasury and credited to 
        the game and fish fund water recreation account. 
           Sec. 124.  Minnesota Statutes 2004, section 103I.681, 
        subdivision 11, is amended to read: 
           Subd. 11.  [PERMIT FEE SCHEDULE.] (a) The commissioner of 
        natural resources shall adopt a permit fee schedule under 
        chapter 14.  The schedule may provide minimum fees for various 
        classes of permits, and additional fees, which may be imposed 
        subsequent to the application, based on the cost of receiving, 
        processing, analyzing, and issuing the permit, and the actual 
        inspecting and monitoring of the activities authorized by the 
        permit, including costs of consulting services. 
           (b) A fee may not be imposed on a state or federal 
        governmental agency applying for a permit.  
           (c) The fee schedule may provide for the refund of a fee, 
        in whole or in part, under circumstances prescribed by the 
        commissioner of natural resources.  Permit Fees received must be 
        deposited in the state treasury and credited to the general 
        fund.  The amount of money necessary to pay the refunds is 
        Permit fees received are appropriated annually from the general 
        fund to the commissioner of natural resources for the costs of 
        inspecting and monitoring the activities authorized by the 
        permit, including costs of consulting services.  
           Sec. 125.  Minnesota Statutes 2004, section 115.06, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CITIZEN MONITORING OF WATER QUALITY.] (a) The 
        agency may encourage citizen monitoring of ambient water quality 
        for public waters by: 
           (1) providing technical assistance to citizen and local 
        group water quality monitoring efforts; 
           (2) integrating citizen monitoring data into water quality 
        assessments and agency programs, provided that the data adheres 
        to agency quality assurance and quality control protocols; and 
           (3) seeking public and private funds to: 
           (i) collaboratively develop clear guidelines for water 
        quality monitoring procedures and data management practices for 
        specific data and information uses; 
           (ii) distribute the guidelines to citizens, local 
        governments, and other interested parties; 
           (iii) improve and expand water quality monitoring 
        activities carried out by the agency; and 
           (iv) continue to improve electronic and Web access to water 
        quality data and information about public waters that have been 
        either fully or partially assessed. 
           (b) This subdivision does not authorize a citizen to enter 
        onto private property for any purpose. 
           (c) By January 15 of each odd-numbered year, the 
        commissioner shall report to the senate and house of 
        representatives committees with jurisdiction over environmental 
        policy and finance on activities under this section. 
           (d) This subdivision shall sunset June 30, 2005. 
           Sec. 126.  Minnesota Statutes 2004, section 115.55, 
        subdivision 5, is amended to read: 
           Subd. 5.  [INSPECTION.] (a) An inspection shall be required 
        for all new construction or replacement of a system to determine 
        compliance with agency rule or local standards.  The manner and 
        timing of inspection may be determined by the applicable local 
        ordinance.  The inspection requirement may be satisfied by a 
        review by the designated local official of video, electronic, 
        photographic, or other evidence of compliance provided by the 
        installer.  
           (b) Except as provided in subdivision 5b, paragraph (b), a 
        local unit of government may not issue a building permit or 
        variance for the addition of a bedroom on property served by a 
        system unless the system is in compliance with the applicable 
        requirements, as evidenced by a certificate of compliance issued 
        by a licensed inspector or site evaluator or designer.  A local 
        unit of government may temporarily waive the certificate of 
        compliance requirement for a building permit or variance for 
        which application is made during the period from November 1 to 
        April 30, provided that an inspection of the system is performed 
        by the following June 1 and the applicant submits a certificate 
        of compliance by the following September 30.  This paragraph 
        does not apply if the local unit of government does not have an 
        ordinance requiring a building permit to add a bedroom. 
           (c) A certificate of compliance for an existing system is 
        valid for three years from the date of issuance unless the local 
        unit of government finds evidence of an imminent threat to 
        public health or safety requiring removal and abatement under 
        section 145A.04, subdivision 8.  
           (d) A certificate of compliance for a new system is valid 
        for five years from the date of issuance unless the local unit 
        of government finds evidence of an imminent threat to public 
        health or safety requiring removal and abatement under section 
        145A.04, subdivision 8. 
           (e) A licensed inspector who inspects an existing system 
        may subsequently design and install a new system for that 
        property, provided the inspector is licensed to install 
        individual sewage treatment systems. 
           (f) No system professional may use the professional's 
        position with government, either as an employee or a contractor, 
        to solicit business for the professional's private system 
        enterprise. 
           Sec. 127.  Minnesota Statutes 2004, section 115.551, is 
        amended to read: 
           115.551 [TANK FEE.] 
           (a) An installer shall pay a fee of $25 for each septic 
        system tank installed in the previous calendar year.  The fees 
        required under this section must be paid to the commissioner by 
        January 30 of each year.  The revenue derived from the fee 
        imposed under this section shall be deposited in the 
        environmental fund and is exempt from section 16A.1285. 
           (b) Notwithstanding paragraph (a), for the purposes of 
        performance-based individual sewage treatment systems, the tank 
        fee is limited to $25 per household system installation. 
           Sec. 128.  Minnesota Statutes 2004, section 115A.072, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ENVIRONMENTAL EDUCATION ADVISORY BOARD.] 
        (a) The director shall provide for the development and 
        implementation of environmental education programs that are 
        designed to meet the goals listed in section 115A.073. 
           (b) The Environmental Education Advisory Board shall advise 
        the director in carrying out the director's responsibilities 
        under this section.  The board consists of 20 members as follows:
           (1) a representative of the Pollution Control Agency, 
        appointed by the commissioner of the agency; 
           (2) a representative of the Department of Education, 
        appointed by the commissioner of education; 
           (3) a representative of the Department of Agriculture, 
        appointed by the commissioner of agriculture; 
           (4) a representative of the Department of Health, appointed 
        by the commissioner of health; 
           (5) a representative of the Department of Natural 
        Resources, appointed by the commissioner of natural resources; 
           (6) a representative of the Board of Water and Soil 
        Resources, appointed by that board; 
           (7) a representative of the Environmental Quality Board, 
        appointed by that board; 
           (8) a representative of the Board of Teaching, appointed by 
        that board; 
           (9) a representative of the University of Minnesota 
        Extension Service, appointed by the director of the service; 
           (10) a citizen member from each congressional district, of 
        which two must be licensed teachers currently teaching in the 
        K-12 system, appointed by the director; and 
           (11) three at-large citizen members, appointed by the 
        director. 
        The citizen members shall serve two-year terms.  Compensation of 
        board members is governed by section 15.059, subdivision 6.  The 
        board expires on June 30, 2003 2008. 
           Sec. 129.  Minnesota Statutes 2004, section 115A.12, is 
        amended to read: 
           115A.12 [ADVISORY COUNCILS.] 
           (a) The director shall establish a Solid Waste Management 
        Advisory Council and a Prevention, Reduction, and Recycling an 
        Environmental Innovations Advisory Council that are is broadly 
        representative of the geographic areas and interests of the 
        state.  
           (b) The solid waste council shall have not less than nine 
        nor more than 21 members.  The membership of the solid waste 
        council shall consist of one-third citizen representatives, 
        one-third representatives from local government units, and 
        one-third representatives from private solid waste management 
        firms.  The solid waste council shall contain at least three 
        members experienced in the private recycling industry and at 
        least one member experienced in each of the following areas:  
        state and municipal finance; solid waste collection, processing, 
        and disposal; and solid waste reduction and resource recovery. 
           (c) (b) The Prevention, Reduction, and Recycling 
        Environmental Innovations Advisory Council shall have not less 
        than nine nor or more than 24 members.  The membership shall 
        consist of one-third citizen representatives, one-third 
        representatives of government, institutional, and one-third 
        representatives of business and industry representatives.  The 
        director may appoint nonvoting members from other environmental 
        and business assistance providers in the state. 
           (d) (c) The chairs chair of the advisory councils 
        council shall be appointed by the director.  The director shall 
        provide administrative and staff services for the advisory 
        councils council.  The advisory councils council shall have such 
        duties as are assigned by law or the director.  The Solid Waste 
        Advisory Council shall make recommendations to the office on its 
        solid waste management activities.  The Prevention, Reduction, 
        and Recycling Environmental Innovations Advisory Council shall 
        make recommendations to the office on policy, programs, and 
        legislation in pollution prevention, waste reduction, reuse and, 
        recycling, and resource conservation, and the management of 
        hazardous waste.  The Environmental Innovations Advisory Council 
        shall focus on developing and implementing innovative programs 
        that improve Minnesota's environment by emphasizing front-end 
        preventative, and resource conservation approaches to preventing 
        waste and pollution.  The council shall emphasize partnerships 
        of government, citizens, institutions, and business to develop 
        and implement these programs.  Members of the advisory councils 
        council shall serve without compensation but shall be reimbursed 
        for their reasonable expenses as determined by the director.  
        Notwithstanding section 15.059, subdivision 5, the Solid Waste 
        Management Advisory Council and the Prevention, Reduction, and 
        Recycling Environmental Innovations Advisory Council expire 
        expires June 30, 2003 2009. 
           Sec. 130.  Minnesota Statutes 2004, section 115A.554, is 
        amended to read: 
           115A.554 [AUTHORITY OF SANITARY DISTRICTS.] 
           A sanitary district has the authorities and duties of 
        counties within the district's boundary for purposes of sections 
        115A.0716; 115A.46, subdivisions 4 and 5; 115A.48; 115A.545; 
        115A.551; 115A.552; 115A.553; 115A.919; 115A.929; 115A.93; 
        115A.96, subdivision 6; 115A.961; 116.072; 375.18, subdivision 
        14; 400.04; 400.06; 400.07; 400.08; 400.16; and 400.161. 
           Sec. 131.  Minnesota Statutes 2004, section 115A.929, is 
        amended to read: 
           115A.929 [FEES; ACCOUNTING.] 
           Each political subdivision that provides for solid waste 
        management shall account for all revenue collected from waste 
        management fees, together with interest earned on revenue from 
        the fees, separately from other revenue collected by the 
        political subdivision and shall report revenue collected from 
        the fees and use of the revenue separately from other revenue 
        and use of revenue in any required financial report or audit.  
        Each political subdivision must file with the director, on or 
        before June 30 annually, the separate report of all revenue 
        collected from waste management fees, together with interest on 
        revenue from the fees, for the previous year.  For the purposes 
        of this section, "waste management fees" means: 
           (1) all fees, charges, and surcharges collected under 
        sections 115A.919, 115A.921, and 115A.923; 
           (2) all tipping fees collected at waste management 
        facilities owned or operated by the political subdivision; 
           (3) all charges imposed by the political subdivision for 
        waste collection and management services; and 
           (4) any other fees, charges, or surcharges imposed on waste 
        or for the purpose of waste management, whether collected 
        directly from generators or indirectly through property taxes or 
        as part of utility or other charges for services provided by the 
        political subdivision. 
           Sec. 132.  Minnesota Statutes 2004, section 115A.9565, is 
        amended to read: 
           115A.9565 [CATHODE-RAY TUBE PROHIBITION.] 
           Effective July 1, 2005 2006, a person may not place in 
        mixed municipal solid waste an electronic product containing a 
        cathode-ray tube.  
           Sec. 133.  Minnesota Statutes 2004, section 115B.48, 
        subdivision 8, is amended to read: 
           Subd. 8.  [FULL-TIME EQUIVALENCE.] "Full-time equivalence" 
        means 2,000 hours worked by employees, owners, and others in a 
        dry cleaning facility during a 12-month period beginning July 1 
        of the preceding year and running through June 30 of the year in 
        which the annual registration fee is due.  For those dry 
        cleaning facilities that were in business less than the 12-month 
        period, full-time equivalence means the total of all of the 
        hours worked in the dry cleaning facility, divided by 2,000 and 
        multiplied by a fraction, the numerator of which is 50 and the 
        denominator of which is the number of weeks in business during 
        the reporting period.  For the purposes of section 115B.49, an 
        owner working 2,000 hours or more shall be considered as one 
        full-time equivalent. 
           Sec. 134.  Minnesota Statutes 2004, section 115D.04, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ADMINISTRATION.] (a) The pollution prevention 
        assistance program must be coordinated with other public and 
        private programs that provide management and technical 
        assistance to eligible recipients.  
           (b) The director may make grants to public or private 
        entities to operate elements of the program.  Grantees shall 
        provide periodic reports on their efforts to assist eligible 
        recipients to reduce pollution. 
           (c) A person, when operating or participating in elements 
        of the technical assistance program pursuant to a grant or 
        contract with the office under this section or other law, is an 
        employee of the state, certified to be acting within the scope 
        of employment, for purposes of the indemnification provisions of 
        section 3.736, subdivision 9, for claims that arise out of the 
        information, assistance, and recommendations covered by the 
        grant or contract.  The state is not obligated to defend or 
        indemnify a grantee or contractor under this subdivision to the 
        extent of the grantee's or contractor's liability insurance.  
        The grantee's or contractor's right to indemnity is not a waiver 
        of limitations, defenses, and immunities available to either the 
        grantee or contractor or the state by law. 
           Sec. 135.  Minnesota Statutes 2004, section 116P.05, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DUTIES.] (a) The commission shall recommend a 
        budget plan for expenditures from the environment and natural 
        resources trust fund and shall adopt a strategic plan as 
        provided in section 116P.08.  
           (b) The commission shall recommend expenditures to the 
        legislature from the state land and water conservation account 
        in the natural resources fund.  
           (c) It is a condition of acceptance of the appropriations 
        made from the Minnesota environment and natural resources trust 
        fund, and oil overcharge money under section 4.071, subdivision 
        2, that the agency or entity receiving the appropriation must 
        submit a work program and semiannual progress reports in the 
        form determined by the Legislative Commission on Minnesota 
        Resources, and comply with applicable reporting requirements 
        under section 116P.16.  None of the money provided may be spent 
        unless the commission has approved the pertinent work program. 
           (d) The peer review panel created under section 116P.08 
        must also review, comment, and report to the commission on 
        research proposals applying for an appropriation from the oil 
        overcharge money under section 4.071, subdivision 2. 
           (e) The commission may adopt operating procedures to 
        fulfill its duties under chapter 116P. 
           [EFFECTIVE DATE.] This section is effective for interests 
        in land acquired after June 30, 2005. 
           Sec. 136.  [116P.16] [REAL PROPERTY INTEREST REPORT.] 
           By December 1 each year, a recipient of an appropriation 
        from the trust fund, that is used for the acquisition of an 
        interest in real property, must submit annual reports on the 
        status of the real property to the Legislative Commission on 
        Minnesota Resources in a form determined by the commission.  The 
        responsibility for reporting under this section may be 
        transferred by the recipient of the appropriation to another 
        person who holds the interest in the real property.  To complete 
        the transfer of reporting responsibility, the recipient of the 
        appropriation must: 
           (1) inform the person to whom the responsibility is 
        transferred of that person's reporting responsibility; 
           (2) inform the person to whom the responsibility is 
        transferred of the property restrictions under section 116P.15; 
        and 
           (3) provide written notice to the commission of the 
        transfer of reporting responsibility, including contact 
        information for the person to whom the responsibility is 
        transferred. 
        After the transfer, the person who holds the interest in the 
        real property is responsible for reporting requirements under 
        this section. 
           [EFFECTIVE DATE.] This section is effective for interests 
        in land acquired after June 30, 2005. 
           Sec. 137.  Minnesota Statutes 2004, section 160.232, is 
        amended to read: 
           160.232 [MOWING DITCHES OUTSIDE CITIES.] 
           (a) To provide enhanced roadside habitat for nesting birds 
        and other small wildlife, road authorities may not mow or till 
        the right-of-way of a highway located outside of a home rule 
        charter or statutory city except as allowed in this section and 
        section 160.23. 
           (b) On any highway, the first eight feet away from the road 
        surface, or shoulder if one exists, may be mowed at any time. 
           (c) An entire right-of-way may be mowed after July 31.  
        From August 31 to the following July 31, the entire right-of-way 
        may only be mowed if necessary for safety reasons, and but may 
        not be mowed to a height of less than 12 inches. 
           (d) A right-of-way may be mowed as necessary to maintain 
        sight distance for safety and may be mowed at other times under 
        rules of the commissioner, or by ordinance of a local road 
        authority not conflicting with the rules of the commissioner. 
           (e) A right-of-way may be mowed, burned, or tilled to 
        prepare the right-of-way for the establishment of permanent 
        vegetative cover or for prairie vegetation management.  
           (f) When feasible, road authorities are encouraged to 
        utilize low maintenance, native vegetation that reduces the need 
        to mow, provides wildlife habitat, and maintains public safety. 
           (g) The commissioner of natural resources shall cooperate 
        with the commissioner of transportation to provide enhanced 
        roadside habitat for nesting birds and other small wildlife. 
           Sec. 138.  Minnesota Statutes 2004, section 168.1296, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL REQUIREMENTS AND PROCEDURES.] (a) 
        The registrar shall issue special critical habitat license 
        plates to an applicant who: 
           (1) is an owner or joint owner of a passenger automobile, 
        pickup truck, or van, or recreational equipment; 
           (2) pays a fee of $10 to cover the costs of handling and 
        manufacturing the plates; 
           (3) pays the registration tax required under section 
        168.013; 
           (4) pays the fees required under this chapter; 
           (5) contributes a minimum of $30 annually to the Minnesota 
        critical habitat private sector matching account established in 
        section 84.943; and 
           (6) complies with laws and rules governing registration and 
        licensing of vehicles and drivers. 
           (b) The critical habitat license application form must 
        clearly indicate that the annual contribution specified under 
        paragraph (a), clause (5), is a minimum contribution to receive 
        the license plate and that the applicant may make an additional 
        contribution to the account. 
           (c) Owners of recreational equipment under paragraph (a), 
        clause (1), are eligible only for special critical habitat 
        license plates for which the designs are selected under 
        subdivision 2, on or after January 1, 2006.  
           (d) Special critical habitat license plates, the designs 
        for which are selected under subdivision 2, on or after January 
        1, 2006, may be personalized according to section 168.12, 
        subdivision 2a. 
           Sec. 139.  Minnesota Statutes 2004, section 169A.63, 
        subdivision 6, is amended to read: 
           Subd. 6.  [VEHICLE SUBJECT TO FORFEITURE.] (a) A motor 
        vehicle is subject to forfeiture under this section if it was 
        used in the commission of a designated offense or was used in 
        conduct resulting in a designated license revocation. 
           (b) Motorboats subject to seizure and forfeiture under this 
        section also include their trailers. 
           Sec. 140.  Minnesota Statutes 2004, section 216B.2424, 
        subdivision 1a, as added by Laws 2005, chapter 97, article 5, 
        section 2, is amended to read:  
           Subd. 1a.  [MUNICIPAL WASTE-TO-ENERGY PROJECT.] (a) This 
        subdivision applies only to a biomass project owned or 
        controlled, directly or indirectly, by two municipal utilities 
        as described in subdivision 5a, paragraph (b). 
           (b) Woody biomass from state-owned land must be harvested 
        in compliance with an adopted management plan and a program of 
        ecologically based third-party certification.  
           (c) The project must prepare a fuel plan on an annual basis 
        after commercial operation of the project as described in the 
        power contract between the project and the public utility, and 
        must also prepare annually certificates reflecting the types of 
        fuel used in the preceding year by the project, as described in 
        the power contract.  The fuel plans and certificates shall also 
        be filed with the Minnesota Department of Natural Resources and 
        the Minnesota Department of Commerce within 30 days after being 
        provided to the public utility, as provided by the power 
        contract.  Any person who believes the fuel plans, as amended, 
        and certificates show that the project does not or will not 
        comply with the fuel requirements of this subdivision may file a 
        petition with the commission seeking such a determination.  
           (d) The wood procurement process must utilize third-party 
        audit certification systems to verify that applicable best 
        management practices were utilized in the procurement of the 
        sustainably managed biomass.  If there is a failure to so verify 
        in any two consecutive years during the original contract term, 
        the farm-grown closed-loop biomass requirements of subdivision 2 
        must be increased to 50 percent for the remaining contract term 
        period; however, if in two consecutive subsequent years after 
        the increase has been implemented, it is verified that the 
        conditions in this subdivision have been met, then for the 
        remaining original contract term the closed-loop biomass mandate 
        reverts to 25 percent.  If there is a subsequent failure to 
        verify in a year after the first failure and implementation of 
        the 50 percent requirement, then the closed-loop percentage 
        shall remain at 50 percent for each remaining year of the 
        contract term.  
           (e) In the closed-loop plantation, no transgenic plants may 
        be used.  
           (f) No wood may be harvested from any lands identified by 
        the final or preliminary Minnesota County Biological Survey as 
        having statewide significance as native plant communities, large 
        populations or concentrations of rare species, or critical 
        animal habitat.  
           (g) A wood procurement plan must be prepared every five 
        years and public meetings must be held and written comments 
        taken on the plan and documentation must be provided on why or 
        why not the public inputs were used.  
           (h) Guidelines or best management practices for sustainably 
        managed woody biomass must be adopted by:  
           (1) the Minnesota Department of Natural Resources for 
        managing and maintaining brushland and open land habitat on 
        public and private lands, including, but not limited to, 
        provisions of sections 84.941, 84.942, and 97A.125; and 
           (2) the Minnesota Forest Resources Council for logging 
        slash, using the most recent available scientific information 
        regarding the removal of woody biomass from forest lands, to 
        sustain the management of forest resources as defined by section 
        89.001, subdivisions 8 and 9, with particular attention to soil 
        productivity, biological diversity as defined by section 89A.01, 
        subdivision 3, and wildlife habitat. 
           These guidelines must be completed by July 1, 2007, and the 
        process of developing them must incorporate public notification 
        and comment. 
           (i) The University of Minnesota Initiative for Renewable 
        Energy and the Environment is encouraged to solicit and fund 
        high-quality research projects to develop and consolidate 
        scientific information regarding the removal of woody biomass 
        from forest and brush lands, with particular attention to the 
        environmental impacts on soil productivity, biological 
        diversity, and sequestration of carbon.  The results of this 
        research shall be made available to the public. 
           (j) The two utilities owning or controlling, directly or 
        indirectly, the biomass project described in subdivision 5a, 
        paragraph (b), shall fund or obtain funding from nonstate 
        sources of up to $150,000 by April 1, 2006, to complete the 
        guidelines or best management practices described in paragraph 
        (h).  The expenditures to be funded under this paragraph do not 
        include any of the expenditures to be funded under paragraph (i).
           Sec. 141.  Minnesota Statutes 2004, section 282.04, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TIMBER SALES; LAND LEASES AND USES.] (a) 
        The county auditor may sell timber upon any tract that may be 
        approved by the natural resources commissioner.  The sale of 
        timber shall be made for cash at not less than the appraised 
        value determined by the county board to the highest bidder after 
        not less than one week's published notice in an official paper 
        within the county.  Any timber offered at the public sale and 
        not sold may thereafter be sold at private sale by the county 
        auditor at not less than the appraised value thereof, until the 
        time as the county board may withdraw the timber from sale.  The 
        appraised value of the timber and the forestry practices to be 
        followed in the cutting of said timber shall be approved by the 
        commissioner of natural resources.  
           (b) Payment of the full sale price of all timber sold on 
        tax-forfeited lands shall be made in cash at the time of the 
        timber sale, except in the case of oral or sealed bid auction 
        sales, the down payment shall be no less than 15 percent of the 
        appraised value, and the balance shall be paid prior to entry.  
        In the case of auction sales that are partitioned and sold as a 
        single sale with predetermined cutting blocks, the down payment 
        shall be no less than 15 percent of the appraised price of the 
        entire timber sale which may be held until the satisfactory 
        completion of the sale or applied in whole or in part to the 
        final cutting block.  The value of each separate block must be 
        paid in full before any cutting may begin in that block.  With 
        the permission of the county contract administrator the 
        purchaser may enter unpaid blocks and cut necessary timber 
        incidental to developing logging roads as may be needed to log 
        other blocks provided that no timber may be removed from an 
        unpaid block until separately scaled and paid for.  If payment 
        is provided as specified in this paragraph as security under 
        paragraph (a) and no cutting has taken place on the contract, 
        the county auditor may credit the security provided, less any 
        down payment required for an auction sale under this paragraph, 
        to any other contract issued to the contract holder by the 
        county under this chapter to which the contract holder requests 
        in writing that it be credited, provided the request and 
        transfer is made within the same calendar year as the security 
        was received. 
           (c) The county board may require final settlement on the 
        basis of a scale of cut products.  Any parcels of land from 
        which timber is to be sold by scale of cut products shall be so 
        designated in the published notice of sale under paragraph (a), 
        in which case the notice shall contain a description of the 
        parcels, a statement of the estimated quantity of each species 
        of timber, and the appraised price of each species of timber for 
        1,000 feet, per cord or per piece, as the case may be.  In those 
        cases any bids offered over and above the appraised prices shall 
        be by percentage, the percent bid to be added to the appraised 
        price of each of the different species of timber advertised on 
        the land.  The purchaser of timber from the parcels shall pay in 
        cash at the time of sale at the rate bid for all of the timber 
        shown in the notice of sale as estimated to be standing on the 
        land, and in addition shall pay at the same rate for any 
        additional amounts which the final scale shows to have been cut 
        or was available for cutting on the land at the time of sale 
        under the terms of the sale.  Where the final scale of cut 
        products shows that less timber was cut or was available for 
        cutting under terms of the sale than was originally paid for, 
        the excess payment shall be refunded from the forfeited tax sale 
        fund upon the claim of the purchaser, to be audited and allowed 
        by the county board as in case of other claims against the 
        county.  No timber, except hardwood pulpwood, may be removed 
        from the parcels of land or other designated landings until 
        scaled by a person or persons designated by the county board and 
        approved by the commissioner of natural resources.  Landings 
        other than the parcel of land from which timber is cut may be 
        designated for scaling by the county board by written agreement 
        with the purchaser of the timber.  The county board may, by 
        written agreement with the purchaser and with a consumer 
        designated by the purchaser when the timber is sold by the 
        county auditor, and with the approval of the commissioner of 
        natural resources, accept the consumer's scale of cut products 
        delivered at the consumer's landing.  No timber shall be removed 
        until fully paid for in cash.  Small amounts of timber not 
        exceeding $3,000 in appraised valuation may be sold for not less 
        than the full appraised value at private sale to individual 
        persons without first publishing notice of sale or calling for 
        bids, provided that in case of a sale involving a total 
        appraised value of more than $200 the sale shall be made subject 
        to final settlement on the basis of a scale of cut products in 
        the manner above provided and not more than two of the sales, 
        directly or indirectly to any individual shall be in effect at 
        one time. 
           (d) As directed by the county board, the county auditor may 
        lease tax-forfeited land to individuals, corporations or 
        organized subdivisions of the state at public or private sale, 
        and at the prices and under the terms as the county board may 
        prescribe, for use as cottage and camp sites and for 
        agricultural purposes and for the purpose of taking and removing 
        of hay, stumpage, sand, gravel, clay, rock, marl, and black dirt 
        from the land, and for garden sites and other temporary uses 
        provided that no leases shall be for a period to exceed ten 
        years; provided, further that any leases involving a 
        consideration of more than $12,000 per year, except to an 
        organized subdivision of the state shall first be offered at 
        public sale in the manner provided herein for sale of timber. 
        Upon the sale of any leased land, it shall remain subject to the 
        lease for not to exceed one year from the beginning of the term 
        of the lease.  Any rent paid by the lessee for the portion of 
        the term cut off by the cancellation shall be refunded from the 
        forfeited tax sale fund upon the claim of the lessee, to be 
        audited and allowed by the county board as in case of other 
        claims against the county. 
           (e) As directed by the county board, the county auditor may 
        lease tax-forfeited land to individuals, corporations, or 
        organized subdivisions of the state at public or private sale, 
        at the prices and under the terms as the county board may 
        prescribe, for the purpose of taking and removing for use for 
        road construction and other purposes tax-forfeited stockpiled 
        iron-bearing material.  The county auditor must determine that 
        the material is needed and suitable for use in the construction 
        or maintenance of a road, tailings basin, settling basin, dike, 
        dam, bank fill, or other works on public or private property, 
        and that the use would be in the best interests of the public.  
        No lease shall exceed ten years.  The use of a stockpile for 
        these purposes must first be approved by the commissioner of 
        natural resources.  The request shall be deemed approved unless 
        the requesting county is notified to the contrary by the 
        commissioner of natural resources within six months after 
        receipt of a request for approval for use of a stockpile.  Once 
        use of a stockpile has been approved, the county may continue to 
        lease it for these purposes until approval is withdrawn by the 
        commissioner of natural resources. 
           (f) The county auditor, with the approval of the county 
        board is authorized to grant permits, licenses, and leases to 
        tax-forfeited lands for the depositing of stripping, lean ores, 
        tailings, or waste products from mines or ore milling plants, 
        upon the conditions and for the consideration and for the period 
        of time, not exceeding 15 years, as the county board may 
        determine.  The permits, licenses, or leases are subject to 
        approval by the commissioner of natural resources. 
           (g) Any person who removes any timber from tax-forfeited 
        land before said timber has been scaled and fully paid for as 
        provided in this subdivision is guilty of a misdemeanor. 
           (h) The county auditor may, with the approval of the county 
        board, and without first offering at public sale, grant leases, 
        for a term not exceeding 25 years, for the removal of peat 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), exclusive of the down payment 
        required for an auction sale in paragraph (b).  If an 
        irrevocable bank letter of credit is provided under this 
        paragraph, at the written request of the purchaser, the county 
        may periodically allow the bank letter of credit to be reduced 
        by an amount proportionate to the value of timber that has been 
        harvested and for which the county has received payment.  The 
        remaining amount of the bank letter of credit after a reduction 
        under this paragraph must not be less than 20 percent of the 
        value of the timber purchased.  If no cutting of timber has 
        taken place on the contract for which a letter of credit has 
        been provided, the county may allow the transfer of the letter 
        of credit to any other contract issued to the contract holder by 
        the county under this chapter to which the contract holder 
        requests in writing that it be credited. 
           Sec. 142.  Minnesota Statutes 2004, section 282.08, as 
        amended by Laws 2005, chapter 151, article 5, section 32, is 
        amended to read: 
           282.08 [APPORTIONMENT OF PROCEEDS TO TAXING DISTRICTS.] 
           The net proceeds from the sale or rental of any parcel of 
        forfeited land, or from the sale of products from the forfeited 
        land, must be apportioned by the county auditor to the taxing 
        districts interested in the land, as follows: 
           (1) the portion required to pay any amounts included in the 
        appraised value under section 282.01, subdivision 3, as 
        representing increased value due to any public improvement made 
        after forfeiture of the parcel to the state, but not exceeding 
        the amount certified by the clerk of the municipality must be 
        apportioned to the municipal subdivision entitled to it; 
           (2) the portion required to pay any amount included in the 
        appraised value under section 282.019, subdivision 5, 
        representing increased value due to response actions taken after 
        forfeiture of the parcel to the state, but not exceeding the 
        amount of expenses certified by the Pollution Control Agency or 
        the commissioner of agriculture, must be apportioned to the 
        agency or the commissioner of agriculture and deposited in the 
        fund from which the expenses were paid; 
           (3) the portion of the remainder required to discharge any 
        special assessment chargeable against the parcel for drainage or 
        other purpose whether due or deferred at the time of forfeiture, 
        must be apportioned to the municipal subdivision entitled to it; 
        and 
           (4) any balance must be apportioned as follows: 
           (i) The county board may annually by resolution set aside 
        no more than 30 percent of the receipts remaining to be used for 
        timber forest development on tax-forfeited land and dedicated 
        memorial forests, to be expended under the supervision of the 
        county board.  It must be expended only on projects approved by 
        the commissioner of natural resources improving the health and 
        management of the forest resource. 
           (ii) The county board may annually by resolution set aside 
        no more than 20 percent of the receipts remaining to be used for 
        the acquisition and maintenance of county parks or recreational 
        areas as defined in sections 398.31 to 398.36, to be expended 
        under the supervision of the county board. 
           (iii) Any balance remaining must be apportioned as 
        follows:  county, 40 percent; town or city, 20 percent; and 
        school district, 40 percent, provided, however, that in 
        unorganized territory that portion which would have accrued to 
        the township must be administered by the county board of 
        commissioners. 
           Sec. 143.  Minnesota Statutes 2004, section 282.38, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEVELOPMENT.] In any county where the 
        county board by proper resolution sets aside funds for timber 
        forest development pursuant to section 282.08, 
        clause (3)(a) (5), item (i), or section 459.06, subdivision 2, 
        the Commission commissioner of Iron Range resources and 
        rehabilitation with the approval of the board may upon request 
        of the county board assist said county in carrying out any 
        project for the long range development of its timber forest 
        resources through matching of funds or otherwise, provided that 
        any such project shall first be approved by the commissioner of 
        natural resources. 
           Sec. 144.  Minnesota Statutes 2004, section 296A.18, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MOTORBOAT.] Approximately 1-1/2 percent of all 
        gasoline received in this state and 1-1/2 percent of all 
        gasoline produced or brought into this state, except gasoline 
        used for aviation purposes, is being used as fuel for the 
        operation of motorboats on the waters of this state and of the 
        total revenue derived from the imposition of the gasoline fuel 
        tax for uses other than for aviation purposes, 1-1/2 percent of 
        such revenues the revenue is the amount of tax on fuel used in 
        motorboats operated on the waters of this state.  The amount of 
        unrefunded tax paid on gasoline used for motor boat purposes as 
        computed in this chapter shall be paid into the state treasury 
        and credited to a water recreation account in the special 
        revenue fund for acquisition, development, maintenance, and 
        rehabilitation of sites for public access and boating facilities 
        on public waters; lake and river improvement; state park 
        development; and boat and water safety. 
           Sec. 145.  Minnesota Statutes 2004, section 297H.13, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ALLOCATION OF REVENUES.] (a) 
        $22,000,000 $33,760,000, or 50 70 percent, whichever is greater, 
        of the amounts remitted under this chapter must be credited to 
        the environmental fund established in section 16A.531, 
        subdivision 1. 
           (b) The remainder must be deposited into the general fund. 
           Sec. 146.  Minnesota Statutes 2004, section 462.357, 
        subdivision 1e, is amended to read: 
           Subd. 1e.  [NONCONFORMITIES.] (a) Any nonconformity, 
        including the lawful use or occupation of land or premises 
        existing at the time of the adoption of an additional control 
        under this chapter, may be continued, including through repair, 
        replacement, restoration, maintenance, or improvement, but not 
        including expansion, unless: 
           (1) the nonconformity or occupancy is discontinued for a 
        period of more than one year; or 
           (2) any nonconforming use is destroyed by fire or other 
        peril to the extent of greater than 50 percent of its market 
        value, and no building permit has been applied for within 180 
        days of when the property is damaged.  In this case, a 
        municipality may impose reasonable conditions upon a building 
        permit in order to mitigate any newly created impact on adjacent 
        property. 
           (b) Any subsequent use or occupancy of the land or premises 
        shall be a conforming use or occupancy.  A municipality may, by 
        ordinance, permit an expansion or impose upon nonconformities 
        reasonable regulations to prevent and abate nuisances and to 
        protect the public health, welfare, or safety.  This subdivision 
        does not prohibit a municipality from enforcing an ordinance 
        that applies to adults-only bookstores, adults-only theaters, or 
        similar adults-only businesses, as defined by ordinance. 
           (c) Notwithstanding paragraph (a), a municipality shall 
        regulate the repair, replacement, maintenance, improvement, or 
        expansion of nonconforming uses and structures in floodplain 
        areas to the extent necessary to maintain eligibility in the 
        National Flood Insurance Program and not increase flood damage 
        potential or increase the degree of obstruction to flood flows 
        in the floodway. 
           Sec. 147.  [473.1565] [METROPOLITAN AREA WATER SUPPLY 
        PLANNING ACTIVITIES; ADVISORY COMMITTEE.] 
           Subdivision 1.  [PLANNING ACTIVITIES.] (a) The Metropolitan 
        Council must carry out planning activities addressing the water 
        supply needs of the metropolitan area as defined in section 
        473.121, subdivision 2.  The planning activities must include, 
        at a minimum: 
           (1) development and maintenance of a base of technical 
        information needed for sound water supply decisions including 
        surface and groundwater availability analyses, water demand 
        projections, water withdrawal and use impact analyses, modeling, 
        and similar studies; 
           (2) development and periodic update of a metropolitan area 
        master water supply plan that: 
           (i) provides guidance for local water supply systems and 
        future regional investments; 
           (ii) emphasizes conservation, interjurisdictional 
        cooperation, and long-term sustainability; and 
           (iii) addresses the reliability, security, and 
        cost-effectiveness of the metropolitan area water supply system 
        and its local and subregional components; 
           (3) recommendations for clarifying the appropriate roles 
        and responsibilities of local, regional, and state government in 
        metropolitan area water supply; 
           (4) recommendations for streamlining and consolidating 
        metropolitan area water supply decision-making and approval 
        processes; and 
           (5) recommendations for the ongoing and long-term funding 
        of metropolitan area water supply planning activities and 
        capital investments. 
           (b) The council must carry out the planning activities in 
        this subdivision in consultation with the metropolitan area 
        water supply advisory committee established in subdivision 2. 
           Subd. 2.  [ADVISORY COMMITTEE.] (a) A metropolitan area 
        water supply advisory committee is established to assist the 
        council in its planning activities in subdivision 1.  The 
        advisory committee has the following membership: 
           (1) the commissioner of agriculture or the commissioner's 
        designee; 
           (2) the commissioner of health or the commissioner's 
        designee; 
           (3) the commissioner of natural resources or the 
        commissioner's designee; 
           (4) the commissioner of the pollution control agency or the 
        commissioner's designee; 
           (5) two officials of counties that are located in the 
        metropolitan area, appointed by the governor; 
           (6) five officials of noncounty local governmental units 
        that are located in the metropolitan area, appointed by the 
        governor; and 
           (7) the chair of the Metropolitan Council or the chair's 
        designee, who is chair of the advisory committee. 
           A local government unit in each of the seven counties in 
        the metropolitan area must be represented in the seven 
        appointments made under clauses (5) and (6). 
           (b) Members of the advisory committee appointed by the 
        governor serve at the pleasure of the governor.  Members of the 
        advisory committee serve without compensation but may be 
        reimbursed for their reasonable expenses as determined by the 
        Metropolitan Council.  The advisory committee expires December 
        31, 2008. 
           (c) The council must consider the work and recommendations 
        of the advisory committee when the council is preparing its 
        regional development framework. 
           Subd. 3.  [REPORTS TO LEGISLATURE.] The council must submit 
        reports to the legislature regarding its findings, 
        recommendations, and continuing planning activities under 
        subdivision 1.  The first report must be submitted to the 
        legislature by the date the legislature convenes in 2007 and 
        subsequent reports must be submitted by such date every five 
        years thereafter. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment and applies in the counties of Anoka, 
        Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 
           Sec. 148.  Minnesota Statutes 2004, section 473.197, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DEBT RESERVE; LEVY.] To provide money to pay 
        debt service on bonds issued under the credit enhancement 
        program if pledged revenues are insufficient to pay debt service 
        in repealed subdivision 1 of Minnesota Statutes 2004, section 
        473.197, the council must maintain a debt reserve fund in the 
        manner and with the effect provided by section 118A.04 for 
        public funds until the reserve is no longer pledged or otherwise 
        needed to pay debt service on such bonds.  To provide funds for 
        the debt reserve fund, the council may use up to $3,000,000 of 
        the proceeds of solid waste bonds issued by the council under 
        section 473.831 before its repeal.  To provide additional funds 
        for the debt reserve fund, the council may levy a tax on all 
        taxable property in the metropolitan area and must levy the tax 
        If sums in the debt reserve fund are insufficient to cure any 
        deficiency in the debt service fund established for the bonds, 
        the council must levy a tax on all taxable property in the 
        metropolitan area in the amount needed to liquidate the 
        deficiency.  The tax authorized by this section does not affect 
        the amount or rate of taxes that may be levied by the council 
        for other purposes and is not subject to limit as to rate or 
        amount. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 149.  Laws 1998, chapter 389, article 16, section 31, 
        subdivision 4, as amended by Laws 1999, chapter 180, section 3, 
        and Laws 2001, chapter 164, section 5, is amended to read: 
           Subd. 4.  [COUNTY ENVIRONMENTAL TRUST FUND.] 
        Notwithstanding the provisions of Minnesota Statutes, chapter 
        282, and any other law relating to the apportionment of proceeds 
        from the sale of tax-forfeited land, and except as otherwise 
        provided in this section, a county board must deposit the money 
        received from the sale of land under subdivision 3 into an 
        environmental trust fund established by the county under this 
        subdivision.  The county board may:  (1) deposit part or all of 
        the environmental trust fund money as provided in Minnesota 
        Statutes, chapter 118A; or (2) enter into an agreement with the 
        State Board of Investment to invest all or part of the money in 
        investments under Minnesota Statutes, section 11A.24, 
        subdivisions 1 to 5, on behalf of the county.  The following may 
        be withheld by a county board and are not required to be 
        deposited into an environmental trust fund:  the costs of 
        appraisal, abstracts, and surveys; money received from a sale 
        which is attributable to land owned by a county in fee; amounts 
        paid to lessees for improvements; amounts paid to acquire land 
        which is included in a county plan for exchange and is conveyed 
        to the state in the exchange, including the purchase price, 
        appraisal, abstract, survey, and closing costs; and the costs of 
        sale to lessees or other parties, including the costs of 
        advertising, realtors, and closing services.  If the proceeds 
        from the sale of tax-forfeited land in a county is are $250,000 
        or more, the principal from the sale of the land may not be 
        expended, amount the county may spend from the fund each 
        calendar year may not exceed 5-1/2 percent of the market value 
        of the fund on January 1 of the preceding calendar year, and the 
        county board may spend interest earned on the principal money 
        from the fund only for purposes related to the improvement of 
        natural resources.  To the extent money received from the sale 
        is attributable to tax-forfeited land from another county, the 
        money must be deposited in an environmental trust fund 
        established under this section by that county board. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 150.  Laws 2003, chapter 128, article 1, section 9, 
        subdivision 6, is amended to read: 
        Subd. 6.  Recreation                   7,622,000      5,870,000 
                      Summary by Fund
        Trust Fund            5,622,000     5,870,000
        State Land and Conservation 
        Account (LAWCON)      2,000,000
        (a) State Park and Recreation Area Land 
        Acquisition 
        $750,000 the first year and $750,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to acquire in-holdings for 
        state park and recreation areas.  Land 
        acquired with this appropriation must 
        be sufficiently improved to meet at 
        least minimum management standards as 
        determined by the commissioner of 
        natural resources.  This appropriation 
        is available until June 30, 2006, at 
        which time the project must be 
        completed and final products delivered, 
        unless an earlier date is specified in 
        the work program. 
        (b) LAWCON Federal Reimbursements 
        $2,000,000 is from the state land and 
        water conservation account (LAWCON) in 
        the natural resources fund to the 
        commissioner of natural resources for 
        eligible state projects and 
        administrative and planning activities 
        consistent with Minnesota Statutes, 
        section 116P.14, and the federal Land 
        and Water Conservation Fund Act.  This 
        appropriation is contingent upon 
        receipt of the federal obligation and 
        remains available until June 30, 2006, 
        at which time the project must be 
        completed and final products delivered, 
        unless an earlier date is specified in 
        the work program. 
        (c) Local Initiative Grants-Parks and 
        Natural Areas 
        $1,290,000 the first year and 
        $1,289,000 the second year are from the 
        trust fund to the commissioner of 
        natural resources for matching grants 
        to local governments for acquisition 
        and development of natural and scenic 
        areas and local parks as provided in 
        Minnesota Statutes, section 85.019, 
        subdivisions 2 and 4a, and regional 
        parks outside of the metropolitan 
        area.  Grants may provide up to 50 
        percent of the nonfederal share of the 
        project cost, except nonmetropolitan 
        regional park grants may provide up to 
        60 percent of the nonfederal share of 
        the project cost.  The commission will 
        monitor the grants for approximate 
        balance over extended periods of time 
        between the metropolitan area, under 
        Minnesota Statutes, section 473.121, 
        subdivision 2, and the nonmetropolitan 
        area through work program oversight and 
        periodic allocation decisions.  For the 
        purposes of this paragraph, the match 
        must be a nonstate contribution, but 
        may be either cash or qualifying 
        in-kind.  Recipients may receive 
        funding for more than one project in 
        any given grant period.  This 
        appropriation is available until June 
        30, 2006, at which time the project 
        must be completed and final products 
        delivered. 
        (d) Metropolitan Regional Parks 
        Acquisition, Rehabilitation, and 
        Development 
        $1,670,000 the first year and 
        $1,669,000 the second year are from the 
        trust fund to the commissioner of 
        natural resources for an agreement with 
        the metropolitan council for subgrants 
        for the acquisition, development, and 
        rehabilitation in the metropolitan 
        regional park system, consistent with 
        the metropolitan council regional 
        recreation open space capital 
        improvement plan.  This appropriation 
        may not be used for the purchase of 
        residential structures.  This 
        appropriation may be used to reimburse 
        implementing agencies for acquisition 
        of nonresidential property as expressly 
        approved in the work program.  This 
        appropriation is available until June 
        30, 2006, at which time the project 
        must be completed and final products 
        delivered, unless an earlier date is 
        specified in the work program.  In 
        addition, if a project financed under 
        this program receives a federal grant, 
        the availability of the financing from 
        this paragraph for that project is 
        extended to equal the period of the 
        federal grant. 
        (e) Local and Regional Trail Grant 
        Initiative Program 
        $160,000 the first year and $160,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to provide matching grants to 
        local units of government for the cost 
        of acquisition, development, 
        engineering services, and enhancement 
        of existing and new trail facilities.  
        This appropriation is available until 
        June 30, 2006, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program.  
        In addition, if a project financed 
        under this program receives a federal 
        grant, the availability of the 
        financing from this paragraph for that 
        project is extended to equal the period 
        of the federal grant.  
        (f) Gitchi-Gami State Trail 
        $650,000 the first year and $650,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources, in cooperation with the 
        Gitchi-Gami Trail Association, for the 
        third biennium, to design and construct 
        approximately five miles of Gitchi-Gami 
        state trail segments.  This 
        appropriation must be matched by at 
        least $400,000 of nonstate money.  The 
        availability of the financing from this 
        paragraph is extended to equal the 
        period of any federal money received. 
        (g) Water Recreation:  Boat Access, 
        Fishing Piers, and Shore-fishing 
        $450,000 the first year and $700,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to acquire and develop public 
        water access sites statewide, construct 
        shore-fishing and pier sites, and 
        restore shorelands at public accesses.  
        This appropriation is available until 
        June 30, 2006, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program. 
        (h) Mesabi Trail 
        $190,000 the first year and $190,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources for an agreement with St. 
        Louis and Lake Counties Regional Rail 
        Authority for the sixth biennium to 
        acquire and develop segments of the 
        Mesabi trail.  If a federal grant is 
        received, the availability of the 
        financing from this paragraph is 
        extended to equal the period of the 
        federal grant. 
        (i) Linking Communities Design, 
        Technology, and DNR Trail Resources 
        $92,000 the first year and $92,000 the 
        second year are from the trust fund to 
        the commissioner of natural resources 
        for an agreement with the University of 
        Minnesota to provide designs for up to 
        three state trails incorporating 
        recreation, natural, and cultural 
        features. 
        (j) Ft. Ridgley Historic Site 
        Interpretive Trail 
        $75,000 the first year and $75,000 the 
        second year are from the trust fund to 
        the Minnesota historical society to 
        construct a trail through the original 
        fort site and install interpretive 
        markers.  This appropriation is 
        available until June 30, 2006, at which 
        time the project must be completed and 
        final products delivered, unless an 
        earlier date is specified in the work 
        program. 
        (k) Development and Rehabilitation of 
        Minnesota Shooting Ranges 
        $120,000 the first year and $120,000 
        the second year are from the trust fund 
        to the commissioner of natural 
        resources to provide technical 
        assistance and matching cost-share 
        grants to local recreational shooting 
        and archery clubs for the purpose of 
        developing or rehabilitating shooting 
        and archery facilities for public use.  
        Recipient facilities must be open to 
        the general public at reasonable times 
        and for a reasonable fee on a walk-in 
        basis.  This appropriation is available 
        until June 30, 2006, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program.  
        (l) Land Acquisition, Minnesota 
        Landscape Arboretum 
        $175,000 the first year and $175,000 
        the second year are from the trust fund 
        to the University of Minnesota for an 
        agreement with the University of 
        Minnesota Landscape Arboretum 
        Foundation for the fifth biennium to 
        acquire in-holdings within the 
        arboretum's boundary land from willing 
        sellers.  This appropriation must be 
        matched by an equal amount of nonstate 
        money.  This appropriation is available 
        until June 30, 2006, at which time the 
        project must be completed and final 
        products delivered, unless an earlier 
        date is specified in the work program. 
           Sec. 151.  Laws 2003, chapter 128, article 1, section 156, 
        is amended to read: 
           Sec. 156.  [WATER QUALITY ASSESSMENT PROCESS.] 
           Subdivision 1.  [RULEMAKING.] (a) By January October 1, 
        2006, the pollution control agency shall adopt rules under 
        Minnesota Statutes, chapter 14, relating to water quality 
        assessment for the waters of the state.  The adopted rules must, 
        at a minimum, satisfy paragraphs (b) to (h). 
           (b) The rules must apply to the determination of impaired 
        waters as required by Section 303(d) of the Clean Water Act of 
        1977, United States Code, title 33, chapter 26, section 1313(d). 
           (c) The rules must define the terms "altered materially," 
        "material increase," "material manner," "seriously impaired," 
        and "significant increase," contained in Minnesota Rules, part 
        7050.0150, subpart 3. 
           (d) The rules must define the terms "normal fishery" and 
        "normally present," contained in Minnesota Rules, part 
        7050.0150, subpart 3. 
           (e) The rules must specify that for purposes of the 
        determination of impaired waters, the agency will make an 
        impairment determination based only on pollution of waters of 
        the state that has resulted in degradation of the physical, 
        chemical, or biological qualities of the water body to the 
        extent that attainable or previously existing beneficial uses 
        are actually or potentially lost. 
           (f) The rules must provide that when a person presents 
        information adequately demonstrating that a beneficial use for 
        the water body does not exist and is not attainable due to the 
        natural condition of the water body, the agency shall initiate 
        an administrative process for reclassification of the water to 
        remove the beneficial use. 
           (g) The rules must provide that the agency, in considering 
        impairment due to nutrients and application of nutrient 
        objectives and effluent limitations related to riverine systems 
        or riverine impoundments, must consider temperature and 
        detention time effects on algal populations when the discharge 
        of nutrients is expected to cause or contribute to algal growth 
        that impairs existing or attainable uses. 
           (h) The agency shall apply Minnesota Rules, part 7050.0150, 
        consistent with paragraphs (e) and (g). 
           Subd. 2.  [REPORT TO LEGISLATURE.] By February 1, 2004, and 
        by February 1, 2005, the commissioner shall report to the 
        environment and natural resources finance committees of the 
        house and senate on the status of discussions with stakeholders 
        and the development of the rules required under subdivision 1. 
           Subd. 3.  [TIME LIMIT.] Notwithstanding the time limit in 
        Minnesota Statutes, section 14.125, the authority of the 
        commissioner to publish a notice of intent to adopt rules and 
        adopt rules is revived. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 152.  Laws 2003, chapter 128, article 1, section 167, 
        subdivision 1, is amended to read: 
           Sec. 167.  [FOREST LAND OFF-HIGHWAY VEHICLE USE 
        RECLASSIFICATION.] 
           Subdivision 1.  [FOREST CLASSIFICATION STATUS REVIEW.] (a) 
        By December 31, 2006, the commissioner of natural resources 
        shall complete a review of the forest classification status of 
        all state forests classified as managed or limited, all forest 
        lands under the authority of the commissioner as defined in 
        Minnesota Statutes, section 89.001, subdivision 13, and lands 
        managed by the commissioner under Minnesota Statutes, section 
        282.011.  The review must be conducted on a forest-by-forest and 
        area-by-area basis in accordance with the process and criteria 
        under Minnesota Rules, part 6100.1950.  Except as provided in 
        paragraph (d), after each forest is reviewed, the commissioner 
        must change its status to limited or closed, and must provide a 
        similar status for each of the other areas subject to review 
        under this section after each individual review is completed.  
           (b) If the commissioner determines on January 1, 2005, that 
        the review required under this section cannot be completed by 
        December 31, 2006, the completion date for the review shall be 
        extended to December 31, 2008.  By January 15, 2005, the 
        commissioner shall report to the chairs of the legislative 
        committees with jurisdiction over natural resources policy and 
        finance regarding the status of the process required by this 
        section.  
           (c) Until December 31, 2010, the state forests and areas 
        subject to review under this section are exempt from Minnesota 
        Statutes, section 84.777, unless an individual forest or area 
        has been classified as limited or closed.  
           (d) Notwithstanding the restrictions in paragraph (a), and 
        Minnesota Statutes, section 84.777, all forest lands under the 
        authority of the commissioner as defined in Minnesota Statutes, 
        section 89.001, subdivision 13, and lands managed by the 
        commissioner under Minnesota Statutes, section 282.011, that are 
        north of U.S. Highway 2 shall maintain their present 
        classification unless the commissioner reclassifies the lands 
        under Minnesota Rules, part 6100.1950.  The commissioner shall 
        provide for seasonal trail closures when conditions warrant 
        them.  By December 31, 2008, the commissioner shall complete the 
        review and designate trails on forest lands north of Highway 2 
        as provided in this section. 
           Sec. 153.  [REQUIRED RULEMAKING.] 
           (a) The commissioner of natural resources shall amend 
        Minnesota Rules, part 6232.0300, subpart 7, to permit an 
        individual to operate an all-terrain vehicle on privately owned 
        land in an area open to taking deer by firearms during the legal 
        shooting hours of the deer season, regardless of whether the 
        individual is licensed to take deer on the day of operation, if 
        the individual is: 
           (1) pursuing an occupation when operating the all-terrain 
        vehicle; 
           (2) not in possession of a firearm; and 
           (3) the owner of the land on which the all-terrain vehicle 
        is operated, an employee of the land owner, or an immediate 
        family member of the land owner. 
           (b) The commissioner may use the good cause exemption under 
        Minnesota Statutes, section 14.388, subdivision 1, clause (3), 
        in amending the rule under paragraph (a).  Minnesota Statutes, 
        section 14.386, does not apply, except to the extent provided 
        under Minnesota Statutes, section 14.388. 
           Sec. 154.  [DISPOSITION OF MINERAL PAYMENTS; FISCAL YEARS 
        2006 AND 2007.] 
           (a) Notwithstanding Minnesota Statutes, section 93.22, 
        subdivision 1, in fiscal years 2006 and 2007, all payments under 
        Minnesota Statutes, sections 93.14 to 93.285, shall be made to 
        the Department of Natural Resources and shall be credited 
        according to this section.  
           (b) Twenty percent of all payments under Minnesota 
        Statutes, sections 93.14 to 93.285, shall be credited to the 
        minerals management account in the natural resources fund as 
        costs for the administration and management of state mineral 
        resources by the commissioner of natural resources. 
           (c) The remainder of the payments shall be credited as 
        follows: 
           (1) if the lands or minerals and mineral rights covered by 
        a lease are held by the state by virtue of an act of Congress, 
        payments made under the lease shall be credited to the permanent 
        fund of the class of land to which the leased premises belong; 
           (2) if a lease covers the bed of navigable waters, payments 
        made under the lease shall be credited to the permanent school 
        fund of the state; 
           (3) if the lands or minerals and mineral rights covered by 
        a lease are held by the state in trust for the taxing districts, 
        payments made under the lease shall be distributed annually on 
        the first day of September to the respective counties in which 
        the lands lie, to be apportioned among the taxing districts 
        interested therein as follows:  county, three-ninths; town or 
        city, two-ninths; and school district, four-ninths; 
           (4) if the lands or mineral rights covered by a lease 
        became the absolute property of the state under the provisions 
        of Minnesota Statutes, chapter 84A, payments made under the 
        lease shall be distributed as follows:  county containing the 
        land from which the income was derived, five-eighths; and 
        general fund of the state, three-eighths; and 
           (5) except as provided under this section and except where 
        the disposition of payments may be otherwise directed by law, 
        payments made under a lease shall be paid into the general fund 
        of the state. 
           Sec. 155.  [WASTE MANAGEMENT TASK FORCE.] 
           Subdivision 1.  [CREATION; MEMBERSHIP.] A waste management 
        task force is created.  The chairs of the house and senate 
        committees with primary jurisdiction over environmental policy 
        and environmental finance shall appoint members to the task 
        force.  Five members shall be appointed from each legislative 
        body, including at least two each from the minority caucus.  The 
        chairs of the house committees shall appoint the house co-chair 
        of the task force.  The chairs of the senate committees shall 
        appoint the senate co-chair of the task force.  The Legislative 
        Coordinating Commission shall provide administrative support to 
        the task force. 
           Subd. 2.  [CHARGE.] (a) The waste management task force is 
        charged to examine the management of organic waste in 
        Minnesota.  In developing its findings and recommendations, the 
        task force may consider the following issues: 
           (1) the need for a hierarchy for organic waste that 
        reflects the state's priorities for organic waste disposal; 
           (2) the economics of managing organic waste, and the role 
        of state-funded incentives; 
           (3) the current systems for transporting, processing, and 
        disposing of organic wastes; and 
           (4) how a state organic waste management system would fit 
        into the existing state and county solid waste management 
        systems.  
           (b) The waste management task force is charged to examine 
        alternative methods of establishing a statewide system for the 
        disposal of electronic waste.  In developing its findings and 
        recommendations, the task force may consider the following 
        issues: 
           (1) approaches that place the burden of funding collection 
        and recycling of electronic waste on, respectively, 
        manufacturers, wholesalers, and consumers; 
           (2) approaches similar to the system used to recycle other 
        appliances. 
           (c) The waste management task force is charged to examine 
        prospects for expanding current landfills and siting new 
        landfills. 
           Subd. 3.  [REPORT.] The task force shall report to the 
        house and senate committees with primary jurisdiction over 
        environmental policy and environmental finance any findings and 
        recommendations, including suggested legislation, by January 15, 
        2006. 
           Subd. 4.  [EXPIRATION.] The waste management task force 
        expires July 1, 2006. 
           Sec. 156.  [ENVIRONMENT AND NATURAL RESOURCES TRUST FUND; 
        ADVISORY TASK FORCE.] 
           Subdivision 1.  [ESTABLISHMENT.] (a) An advisory task force 
        to examine the process for making recommendations on 
        expenditures from the environment and natural resources trust 
        fund is created, consisting of: 
           (1) four former members of the current Legislative 
        Commission on Minnesota Resources from the house of 
        representatives, appointed by the executive committee of the 
        commission; 
           (2) four former members of the current Legislative 
        Commission on Minnesota Resources from the senate, appointed by 
        the executive committee of the commission; and 
           (3) eight public members who are not current or past 
        members of the Legislative Commission on Natural Resources or 
        the Citizens Advisory Council, established under Minnesota 
        Statutes, section 116P.06, but who have submitted trust fund 
        proposals for funding, appointed by the governor. 
           (b) The members of the task force shall select a chair who 
        shall preside and convene meetings of the task force.  At least 
        two house members and two senate members appointed must be from 
        the minority caucus.  Current legislative members of the task 
        force are entitled to reimbursement for per diem expenses plus 
        travel expenses incurred in the services of the task force.  
        Public members of the task force shall be compensated as 
        provided in Minnesota Statutes, section 15.0575. 
           (c) The task force shall examine the current process for 
        recommending appropriations from the environment and natural 
        resources trust fund and make recommendations for changes in the 
        process. 
           (d) By February 15, 2006, the task force shall report on 
        its recommendations to the governor and the legislative 
        committees and divisions with jurisdiction over environment and 
        natural resources policy and finance.  
           Subd. 2.  [SUNSET.] The duties of the Legislative 
        Commission on Minnesota Resources to recommend expenditures from 
        the environment and natural resources trust fund expire on June 
        30, 2006. 
           Sec. 157.  [CONTINUATION OF AGREEMENTS.] 
           An agreement entered into between the Metropolitan Council 
        and a participant in the credit enhancement program under 
        Minnesota Statutes 2004, section 473.197, subdivision 5, with 
        respect to bonds issued prior to the effective date of this 
        section, shall continue in effect in accordance with its terms; 
        provided that no provision in such agreement shall be construed 
        to require or allow the council to pledge its full faith and 
        credit and taxing powers to the payment of additional bonds 
        issued after the effective date of this section. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment and applies in the counties of Anoka, 
        Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 
           Sec. 158.  [USE OF CREDIT ENHANCEMENT PROGRAM FUNDS.] 
           The Metropolitan Council must transfer any funds 
        originating from the proceeds of solid waste bonds and available 
        for the credit enhancement program under Minnesota Statutes 
        2004, section 473.197, subdivision 4, to the council's general 
        fund to the extent such funds are no longer pledged or otherwise 
        needed by the council to maintain a debt reserve fund as 
        provided for in ongoing Minnesota Statutes, section 473.197, 
        subdivision 4.  The council must first use the transferred funds 
        for carrying out the metropolitan area water supply planning 
        activities required by Minnesota Statutes, section 473.1565, for 
        staff support of the advisory committee established under that 
        section, and for related purposes.  If the council determines 
        that the transferred funds are no longer needed for such 
        purposes, the council may use any such funds for any general 
        purposes of the council. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment and applies in the counties of Anoka, 
        Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 
           Sec. 159.  [APPLICATION FOR DISABILITY BENEFITS.] 
           Subdivision 1.  [ELIGIBLE PERSON.] For purposes of this 
        section, an eligible person is a person who was employed by the 
        Minnesota Department of Natural Resources as a photo lab 
        supervisor beginning in April 1977 and ending in June 1998. 
           Subd. 2.  [APPLICATION PROCEDURE.] Notwithstanding any 
        contrary provision in Minnesota Statutes, section 352.113, or 
        any other law, an eligible person may file an application for 
        disability benefits from the Minnesota State Retirement System 
        within 60 days of the effective date of this section.  Upon 
        filing of the application, the director must act on the 
        application as if it had been filed within 180 days of 
        termination of the person's employment with the Department of 
        Natural Resources.  The director may approve the disability 
        benefit only if the eligible person establishes that the person 
        became disabled while still a state employee.  If the director 
        approves the disability benefit, the benefit begins to accrue on 
        the date it is approved. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 160.  [PCA/OEA MERGER.] 
           The responsibilities of the Office of Environmental 
        Assistance are transferred to the Pollution Control Agency under 
        Minnesota Statutes, section 15.039.  In addition to the 
        provisions of Minnesota Statutes, section 15.039, no employee in 
        the classified service shall suffer job loss, have a salary 
        reduced, or have employment benefits reduced as a result of the 
        reorganization in this article. 
           Sec. 161.  [REVISOR'S INSTRUCTION.] 
           Except as otherwise provided in this article, the revisor 
        shall make the following changes, with appropriate grammatical 
        corrections, in Minnesota Statutes and Minnesota Rules: 
           (1) delete references to the Office of Environmental 
        Assistance or its director and insert references to the 
        Pollution Control Agency or its commissioner; 
           (2) delete language that is made superfluous by the merger 
        of the agency and the office; 
           (3) in Minnesota Statutes, chapters 115A to 116, delete 
        references to obsolete names of committees in the senate and 
        house of representatives and insert generic references to 
        committees with jurisdiction over the specified areas of 
        governance; and 
           (4) in Minnesota Statutes, chapters 115A to 116, delete 
        obsolete references to reports required to be submitted to the 
        legislature. 
           Sec. 162.  [REPEALER.] 
           Subdivision 1.  [METROPOLITAN COUNCIL.] Minnesota Statutes 
        2004, sections 473.156; and 473.197, subdivisions 1, 2, 3, and 
        5, are repealed effective the day following final enactment. 
           Subd. 2.  [STATE LANDS.] Minnesota Statutes 2004, sections 
        94.343, subdivision 6; 94.344, subdivision 6; 94.348; and 
        94.349, are repealed. 
           Subd. 3.  [PCA/OEA MERGER.] Minnesota Statutes 2004, 
        sections 115A.03, subdivisions 8a and 22a; 115A.055, subdivision 
        1; 115D.03, subdivision 4; and 473.801, subdivision 6, are 
        repealed.  
           Subd. 4.  [OFF-HIGHWAY VEHICLE SAFETY AND CONSERVATION 
        PROGRAM.] Minnesota Statutes 2004, section 84.901, is repealed. 

                                   ARTICLE 3 
                  JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS
        Section 1.  [JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or another named fund, to 
        the agencies and for the purposes specified in this article, to 
        be available for the fiscal years indicated for each purpose.  
        The figures "2006" and "2007," where used in this article, mean 
        that the appropriation or appropriations listed under them are 
        available for the fiscal year ending June 30, 2006, or June 30, 
        2007, respectively.  The term "first year" means the fiscal year 
        ending June 30, 2006, and the term "second year" means the 
        fiscal year ending June 30, 2007. 
                                SUMMARY BY FUND
                                  2006          2007           TOTAL
        General            $  161,219,000 $  146,559,000 $  307,778,000
        Workforce
        Development            16,627,000     16,827,000     33,454,000
        Remediation               700,000        700,000      1,400,000
        Petroleum Tank
        Cleanup                 1,084,000      1,084,000      2,168,000
        Workers'
        Compensation           21,750,000     21,750,000     43,500,000
        TOTAL              $  201,380,000 $  186,920,000 $  388,300,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2006         2007 
        Sec. 2.  EMPLOYMENT AND 
        ECONOMIC DEVELOPMENT 
        Subdivision 1.  Total
        Appropriation                     $   69,825,000 $   54,549,000
                      Summary by Fund
        General              54,448,000    38,972,000
        Remediation             700,000       700,000
        Workforce
        Development          14,677,000    14,877,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Business and
        Community Development                 23,359,000      7,883,000 
                      Summary by Fund
        General              22,659,000     7,183,000
        Remediation             700,000       700,000
        $150,000 the first year and $150,000 
        the second year are from the general 
        fund for a grant under Minnesota 
        Statutes, section 116J.421, to the 
        Rural Policy and Development Center at 
        St. Peter, Minnesota.  The grant shall 
        be used for research and policy 
        analysis on emerging economic and 
        social issues in rural Minnesota, to 
        serve as a policy resource center for 
        rural Minnesota communities, to 
        encourage collaboration across higher 
        education institutions to provide 
        interdisciplinary team approaches to 
        research and problem-solving in rural 
        communities, and to administer overall 
        operations of the center. 
        The grant shall be provided upon the 
        condition that each state-appropriated 
        dollar be matched with a nonstate 
        dollar.  Acceptable matching funds are 
        nonstate contributions that the center 
        has received and have not been used to 
        match previous state grants.  Any funds 
        not spent the first year are available 
        the second year. 
        $155,000 the first year and $155,000 
        the second year are from the general 
        fund for a grant to the Metropolitan 
        Economic Development Association for 
        continuing minority business 
        development programs in the 
        metropolitan area. 
        $150,000 the first year and $150,000 
        the second year are from the general 
        fund for a grant to WomenVenture for 
        women's business development programs. 
        $250,000 the first year and $250,000 
        the second year are to establish a 
        methamphetamine laboratory cleanup 
        revolving loan fund pursuant to 
        Minnesota Statutes, section 446A.083.  
        This is a onetime appropriation.  This 
        appropriation is available until spent. 
        $18,000 in the first year and $17,000 
        in the second year are for onetime 
        grants to the Riverbend Center for 
        Entrepreneurial Facilitation in Blue 
        Earth County.  The grants must be used 
        to continue a program to assist in the 
        development of entrepreneurs and small 
        businesses.  The grants must be 
        provided on the condition that each 
        state-appropriated dollar be matched 
        with a nonstate dollar.  Any balance in 
        the first year does not cancel but is 
        available in the second year. 
        Grant recipients must report to the 
        commissioner by February 1 in each of 
        the two years after the year of receipt 
        of the grant.  The report must detail 
        the number of customers served; the 
        number of businesses started, 
        stabilized, or expanded; the number of 
        jobs created and retained; and business 
        success rates.  The commissioner shall 
        report to the legislature on the 
        program's assistance to entrepreneurs 
        and small businesses.  The report shall 
        contain an evaluation of the results. 
        $15,000,000 the first year is for the 
        direct and indirect expenses of the 
        collaborative research partnership 
        between the University of Minnesota and 
        the Mayo Foundation for research in 
        biotechnology and medical genomics.  
        This is a onetime appropriation.  An 
        annual report on the expenditure of 
        this appropriation must be submitted to 
        the governor and the chairs of the 
        senate Higher Education Budget 
        Division, the house of representatives 
        Higher Education Finance Committee, the 
        senate Environment, Agriculture, and 
        Economic Development Budget Division, 
        and the house of representatives Jobs 
        and Economic Opportunity Policy and 
        Finance Committee, by June 30 of each 
        fiscal year until the appropriation is 
        expended.  This appropriation is 
        available until expended. 
        $100,000 the first year and $100,000 
        the second year are to help small 
        businesses access federal funds through 
        the federal Small Business Innovation 
        Research Program and the federal Small 
        Business Technology Transfer Program.  
        Department services must include 
        maintaining connections to 11 federal 
        programs, assessment of specific 
        funding opportunities, review of 
        funding proposals, referral to specific 
        consulting services, and training 
        workshops throughout the state.  The 
        appropriation is added to the agency's 
        base.  Unless prohibited by federal 
        law, the department must implement fees 
        for services that help companies seek 
        federal Phase II Small Business 
        Innovation Research grants.  The 
        recommended fee schedule must be 
        reported to the chairs of the house of 
        representatives finance committee and 
        senate budget division with 
        jurisdiction over economic development 
        by February 1, 2006. 
        $60,000 the first year and $60,000 the 
        second year are for grants to the 
        Minnesota Inventors Congress.  Of this 
        amount, $10,000 each year is for the 
        Student Inventors Congress. 
        $15,000 the first year from the base is 
        for a onetime grant to La Creche Early 
        Childhood Centers, Inc. of Minneapolis. 
        $125,000 the first year is for a grant 
        to the Northwest Regional Development 
        Commission at Warren to do field 
        research on the planting and production 
        of cold-hardy grape cultivars.  This is 
        a onetime appropriation and is 
        available until expended. * (The 
        preceding text beginning "$125,000 the 
        first year" was indicated as vetoed by 
        the governor.) 
        This vineyard production research 
        project is to select cold-hardy 
        cultivars and cultural practices that 
        can diversify the agricultural 
        landscape of Minnesota and stimulate 
        economic development with subsequent 
        expansion into value-added businesses 
        and the winery industry.  Treatments 
        used in this research project must 
        focus on development of cultural and 
        management practices that include 
        trials on planting depths, vine root 
        care, cultivation techniques, mulching, 
        and other methods that will enhance 
        productivity and winter survival in 
        subzero temperatures. 
        An annual report is required, including 
        an economic assessment that compares 
        the input requirements and feasibility 
        of each overwintering technique and its 
        contribution to the success of the 
        vines.  The report must be submitted to 
        the chairs of the house of 
        representatives and senate policy 
        committees with jurisdiction over 
        agriculture.  The Northwest Regional 
        Development Commission is encouraged to 
        work with the University of Minnesota 
        and the North Dakota State University 
        experiment stations and on-farm sites 
        to evaluate the suitability of 
        regionally developed grape cultivars in 
        areas of harsh winters and short 
        growing seasons. 
        $250,000 the first year is for a 
        onetime grant to the Blandin Foundation 
        for the "get broadband" program.  This 
        appropriation must be matched equally 
        by nonstate funds and is available 
        until expended.  Expenditures made by 
        the Blandin Foundation beginning 
        December 1, 2004, may be used as match 
        for this appropriation.  The "get 
        broadband" program must be designed to 
        increase the use of broadband-based 
        technologies by businesses, schools, 
        health care organizations, government 
        organizations, and the general public. 
        $100,000 the first year is for a 
        onetime grant to the Children's 
        Discovery Museum for furnishing and 
        equipping the new Children's Discovery 
        Museum in Grand Rapids. 
        Subd. 3.  Workforce Partnerships      15,229,000     15,229,000 
                      Summary by Fund
        General               8,347,000     8,347,000
        Workforce
        Development           6,882,000     6,882,000
        $6,785,000 the first year and 
        $6,785,000 the second year are from the 
        general fund for the Minnesota job 
        skills partnership program under 
        Minnesota Statutes, sections 116L.01 to 
        116L.17.  If the appropriation for 
        either year is insufficient, the 
        appropriation for the other year is 
        available.  This appropriation does not 
        cancel. 
        $305,000 the first year and $305,000 
        the second year are from the general 
        fund for a grant under Minnesota 
        Statutes, section 116J.8747, to Twin 
        Cities RISE! to provide training to 
        hard-to-train individuals. 
        $875,000 the first year and $875,000 
        the second year are from the workforce 
        development fund for opportunities 
        industrialization center programs. 
        $500,000 the first year and $500,000 
        the second year are from the workforce 
        development fund for a onetime grant to 
        the Minnesota Opportunities 
        Industrialization Centers State 
        Council.  The grant shall be used by 
        the American Indian Opportunities 
        Industrialization Centers of 
        Minneapolis, and the Northwestern 
        Opportunities Industrialization Centers 
        of Bemidji, to provide training to 
        American Indians on personal financial 
        management and investment and to become 
        small businesspersons.  The 
        opportunities industrialization centers 
        may contract with any accredited state 
        or private educational institution to 
        deliver training. * (The preceding text 
        beginning "$500,000 the first year" was 
        indicated as vetoed by the governor.) 
        $500,000 the first year and $500,000 
        the second year are from the workforce 
        development fund for a onetime grant to 
        the Minnesota Opportunity 
        Industrialization Centers State 
        Council.  The grant shall be used to 
        initiate and expand health occupation 
        training at Minnesota Opportunity 
        Industrialization Centers.  The grant 
        shall be distributed evenly among those 
        Minnesota Opportunity Industrialization 
        Centers that have plans to either 
        initiate or expand health occupations 
        and career ladder training programs for 
        individuals seeking employment as 
        nurses, nursing assistants, home health 
        aides, phlebotomists, or in the field 
        of medical coding.  
        The first $1,450,000 deposited in each 
        year of the biennium and in each year 
        of subsequent bienniums into the 
        contingent account created under 
        Minnesota Statutes, section 268.196, 
        subdivision 3, shall be transferred 
        upon deposit to the workforce 
        development fund created under 
        Minnesota Statutes, section 116L.20.  
        Deposits in excess of the $1,450,000 
        shall be transferred upon deposit to 
        the general fund. 
        $1,069,000 the first year and 
        $1,069,000 the second year are from the 
        general fund and $3,000,000 the first 
        year and $3,000,000 the second year are 
        from the workforce development fund for 
        a onetime grant for the Minnesota youth 
        program.  If the appropriation in 
        either year is insufficient, the 
        appropriation for the other year is 
        available. * (The text 
        "$1,069,000 the first year and 
        $1,069,000 the second year are from the 
        general fund and" was indicated as 
        vetoed by the governor.) 
        $183,000 the first year and $183,000 
        the second year are for a onetime grant 
        for the learn-to-earn summer youth 
        employment program.  This appropriation 
        is available until spent. * (The 
        preceding text beginning "$183,000 the 
        first year" was indicated as vetoed by 
        the governor.) 
        $757,000 the first year and $757,000 
        the second year are from the workforce 
        development fund for a onetime grant 
        for the youthbuild program under 
        Minnesota Statutes, sections 268.361 to 
        268.3661.  A Minnesota Youthbuild 
        program funded under this section as 
        authorized in Minnesota Statutes, 
        sections 116L.361 to 116L.366, 
        qualifies as an approved training 
        program under Minnesota Rules, part 
        5200.0930, subpart 1. 
        $1,000,000 the first year and 
        $1,000,000 the second year are from the 
        workforce development fund for a 
        onetime grant to the Minnesota Alliance 
        of Boys and Girls Clubs to administer a 
        statewide project of youth job skills 
        development.  This project, which may 
        have career guidance components, is to 
        encourage, train, and assist youth in 
        job-seeking skills, workplace 
        orientation, and job-site knowledge 
        through coaching.  This grant requires 
        a 25 percent match from nonstate 
        resources. 
        $5,000 the first year and $5,000 the 
        second year are for a onetime grant to 
        the Northwest Regional Curfew Center 
        under the youth intervention program in 
        Minnesota Statutes, section 116L.30. * 
        (The preceding text beginning "$5,000 
        the first year" was indicated as vetoed 
        by the governor.) 
        $8,500 in the first year and $8,500 in 
        the second year are from the 
        department's base for a grant to the 
        Twin Cities Community Voice Mail to 
        maintain the toll-free telephone number 
        for the Greater Minnesota Project.  The 
        commissioner must ensure that the 
        telephone number is not changed for the 
        2006-2007 biennium. * (The preceding 
        text beginning "$8,500 the first year" 
        was indicated as vetoed by the 
        governor.) 
        $250,000 the first year and $250,000 
        the second year are from the workforce 
        development fund for a grant to 
        Lifetrack Resources for its immigrant 
        and refugee collaborative programs, 
        including those related to job-seeking 
        skills and workplace orientation, 
        intensive job development, functional 
        work English, and on-site job coaching. 
        Subd. 4.  Workforce Services          27,960,000     28,160,000 
                      Summary by Fund
        General              20,165,000    20,165,000
        Workforce
        Development           7,795,000     7,995,000
        $4,864,000 the first year and 
        $4,864,000 the second year are from the 
        general fund and $7,420,000 the first 
        year and $7,420,000 the second year are 
        from the workforce development fund for 
        extended employment services for 
        persons with severe disabilities or 
        related conditions under Minnesota 
        Statutes, section 268A.15.  Of the 
        amount from the workforce development 
        fund, $500,000 each year is onetime. 
        $1,690,000 the first year and 
        $1,690,000 the second year are from the 
        general fund for grants under Minnesota 
        Statutes, section 268A.11, for the 
        eight centers for independent living.  
        Money not expended the first year is 
        available the second year. 
        $150,000 the first year and $150,000 
        the second year are from the general 
        fund and $175,000 the first year and 
        $175,000 the second year are from the 
        workforce development fund for grants 
        under Minnesota Statutes, section 
        268A.03, to Rise, Inc. for the 
        Minnesota Employment Center for People 
        Who are Deaf or Hard-of-Hearing.  Money 
        not expended the first year is 
        available the second year.  Of the 
        amount from the workforce development 
        fund, $150,000 each year is onetime. 
        $1,000,000 the first year and 
        $1,000,000 the second year are from the 
        general fund and $200,000 the first 
        year and $400,000 the second year are 
        from the workforce development fund for 
        grants for programs that provide 
        employment support services to persons 
        with mental illness under Minnesota 
        Statutes, sections 268A.13 and 
        268A.14.  Up to $77,000 each year may 
        be used for administrative and salary 
        expenses.  The appropriation from the 
        workforce development fund is onetime. 
        $4,940,000 the first year and 
        $4,940,000 the second year are from the 
        general fund for state services for the 
        blind activities. 
        $7,521,000 the first year and 
        $7,521,000 the second year are from the 
        general fund for the state's vocational 
        rehabilitation program for people with 
        significant disabilities to assist with 
        employment, under Minnesota Statutes, 
        chapter 268A. 
        On or after July 1, 2005, the 
        commissioner of finance shall cancel 
        the unencumbered balance in the 
        contaminated site cleanup and 
        development account to the unrestricted 
        fund balance in the general fund. 
        Subd. 5.  State-Funded
        Administration                         3,277,000      3,277,000 
        Sec. 3.  MINNESOTA CONSERVATION CORPS  1,200,000      1,200,000
        This appropriation is from the 
        workforce development fund for a 
        onetime appropriation for the purposes 
        of Minnesota Statutes, section 
        84.991. * (The preceding section was 
        indicated as vetoed by the governor.) 
        Sec. 4.  COMMERCE
        Subdivision 1.  Total
        Appropriation                         22,065,000     22,065,000
                      Summary by Fund
        General              20,146,000    20,146,000
        Petroleum
        Cleanup               1,084,000     1,084,000
        Workers'
        Compensation            835,000       835,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Financial Examinations       5,994,000      5,994,000 
        Subd. 3.  Petroleum Tank Release
        Cleanup Board                          1,084,000      1,084,000 
        This appropriation is from the 
        petroleum tank release cleanup fund. 
        Subd. 4.  Administrative Services      5,418,000      5,418,000 
        Subd. 5.  Market Assurance             5,757,000      5,757,000 
                      Summary by Fund
        General               4,922,000     4,922,000
        Workers'
        Compensation            835,000       835,000
        Subd. 6.  Energy and
        Telecommunications                     3,812,000      3,812,000 
        Subd. 7.  Fair Housing Education  
        Of the money appropriated for fair 
        housing education under Laws 2001, 
        chapter 208, section 28, the 
        unencumbered balance is canceled and 
        transferred to the general fund. 
        Subd. 8.  Mortgage Consumer Education
        Of the unexpended balance in the 
        consumer education account established 
        under Minnesota Statutes, section 
        58.10, subdivision 3, $200,000 is 
        transferred to the general fund. 
        Subd. 9.  Liquefied Petroleum Gas Account 
        The unexpended balance in the liquefied 
        petroleum gas account established under 
        Minnesota Statutes, section 239.785, 
        subdivision 6, is canceled and 
        transferred to the general fund. 
        Sec. 5.  HOUSING FINANCE AGENCY
        Subdivision 1.  Total
        Appropriation                         35,235,000     35,235,000
        The amounts that may be spent from this 
        appropriation for certain programs are 
        specified in the following subdivisions.
        This appropriation is for transfer to 
        the housing development fund for the 
        programs specified.  Except as 
        otherwise indicated, this transfer is 
        part of the agency's permanent budget 
        base. 
        Subd. 2.  Challenge Program 
            10,907,000     10,907,000
        For the economic development and 
        housing challenge program under 
        Minnesota Statutes, section 462A.33.  
        Of this amount, $1,285,000 each year 
        shall be made available during the 
        first eight months of the fiscal year 
        exclusively for housing projects for 
        American Indians.  Any funds not 
        committed to housing projects for 
        American Indians in the first eight 
        months of the fiscal year, shall be 
        available for any eligible activity 
        under Minnesota Statutes, section 
        462A.33. 
        Subd. 3.  Housing Trust Fund     
        $6,305,000 the first year and 
        $6,305,000 the second year are for the 
        housing trust fund to be deposited in 
        the housing trust fund account created 
        under Minnesota Statutes, section 
        462A.201, and used for the purposes 
        provided in that section.  The base 
        funding for this program shall be 
        $8,305,000 each year in the 2008-2009 
        biennium. 
        Subd. 4.  Rental Assistance for Mentally Ill 
             1,638,000      1,638,000
        For a rental housing assistance program 
        for persons with a mental illness or 
        families with an adult member with a 
        mental illness under Minnesota 
        Statutes, section 462A.2097.  The 
        agency must not reduce the funding 
        under this subdivision. 
        Subd. 5.  Family Homeless Prevention
             3,715,000      3,715,000 
        For family homeless prevention and 
        assistance programs under Minnesota 
        Statutes, section 462A.204.  Any 
        balance in the first year does not 
        cancel but is available in the second 
        year.  
        As provided in Minnesota Statutes, 
        section 462A.20, subdivision 3, the 
        agency may transfer unencumbered 
        balances from one appropriated account 
        to another as necessary to implement 
        the business plan of the working group 
        on long-term homelessness established 
        in Laws 2003, chapter 128, article 15, 
        section 9. 
        Subd. 6.  Home Ownership
        Assistance Fund                 
        The budget base for the home ownership 
        assistance fund shall be $885,000 in 
        fiscal year 2008 and $885,000 in fiscal 
        year 2009. 
        Subd. 7.  Affordable Rental
        Investment Fund               
        $8,996,000 the first year and 
        $8,996,000 the second year are for the 
        affordable rental investment fund 
        program under Minnesota Statutes, 
        section 462A.21, subdivision 8b. 
        This appropriation is to finance the 
        acquisition, rehabilitation, and debt 
        restructuring of federally assisted 
        rental property and for making equity 
        take-out loans under Minnesota 
        Statutes, section 462A.05, subdivision 
        39.  This appropriation also may be 
        used to finance the acquisition, 
        rehabilitation, and debt restructuring 
        of existing supportive housing 
        properties.  For purposes of this 
        subdivision, "supportive housing" means 
        affordable rental housing with links to 
        services necessary for individuals, 
        youth, and families with children to 
        maintain housing stability. 
        The owner of the federally assisted 
        rental property must agree to 
        participate in the applicable federally 
        assisted housing program and to extend 
        any existing low-income affordability 
        restrictions on the housing for the 
        maximum term permitted.  The owner must 
        also enter into an agreement that gives 
        local units of government, housing and 
        redevelopment authorities, and 
        nonprofit housing organizations the 
        right of first refusal if the rental 
        property is offered for sale.  Priority 
        must be given among comparable 
        federally assisted rental properties to 
        properties with the longest remaining 
        term under an agreement for federal 
        rental assistance.  Priority must also 
        be given among comparable rental 
        housing developments to developments 
        that are or will be owned by local 
        government units, a housing and 
        redevelopment authority, or a nonprofit 
        housing organization. 
        Subd. 8.  Housing Rehabilitation
        and Accessibility                 
        $2,654,000 the first year and 
        $2,654,000 the second year are for the 
        housing rehabilitation and 
        accessibility program under Minnesota 
        Statutes, section 462A.05, subdivisions 
        14a and 15a.  The budget base for the 
        housing rehabilitation and 
        accessibility program shall be 
        $3,972,000 in fiscal year 2008 and 
        $3,972,000 in fiscal year 2009. 
        Subd. 9.  Home Ownership Education, 
        Counseling, and Training
               770,000        770,000
        For the home ownership education, 
        counseling, and training program under 
        Minnesota Statutes, section 462A.209. 
        Subd. 10.  Capacity Building
        Grants                            
        $250,000 the first year and $250,000 
        the second year are for nonprofit 
        capacity building grants under 
        Minnesota Statutes, section 462A.21, 
        subdivision 3b. 
        Sec. 6.  EXPLORE MINNESOTA
        TOURISM                                8,701,000      9,701,000 
        To develop maximum private sector 
        involvement in tourism, $4,000,000 each 
        year must be matched by Explore 
        Minnesota tourism from nonstate 
        sources.  Up to one-half of the total 
        match requirement may include in-kind 
        contributions.  Cash match is defined 
        as revenue to the state or documented 
        case expenditures directly expended to 
        support Explore Minnesota tourism 
        programs. 
        In the second year, for every dollar 
        generated from nonstate sources in the 
        previous year in excess of $4,000,000, 
        an amount of up to $1,000,000 is 
        appropriated from the general fund to 
        Explore Minnesota tourism for marketing 
        purposes.  This incentive is ongoing.  
        In order to maximize marketing grant 
        benefits, the director must give 
        priority for organizational partnership 
        marketing grants to organizations with 
        year-round sustained tourism 
        activities.  For programs and projects 
        submitted, the director must give 
        priority to those that encompass two or 
        more areas or that attract nonresident 
        travelers to the state. 
        Funding for the marketing grants is 
        available either year of the biennium.  
        Unexpended grant funds from the first 
        year are available in the second year. 
        The director may use grant dollars or 
        the value of in-kind services to 
        provide the state contribution for the 
        partnership grant program. 
        Any unexpended money from the general 
        fund appropriations made under this 
        section does not cancel but must be 
        placed in a special marketing account 
        for use by Explore Minnesota tourism 
        for additional marketing activities. 
        Of this amount, $50,000 the first year 
        from the base is for a onetime grant to 
        the Mississippi River Parkway 
        Commission to support the increased 
        promotion of tourism along the Great 
        River Road.  This appropriation is 
        available until June 30, 2007. 
        $250,000 the first year and $250,000 
        the second year are for the Minnesota 
        Film Board.  The appropriation in each 
        year is available only upon receipt by 
        the board of $1 in matching 
        contributions of money or in-kind from 
        nonstate sources for every $3 provided 
        by this appropriation. 
        Of this amount, $60,000 the first year 
        is for a onetime grant to the city of 
        Winona for the Great River Shakespeare 
        Festival.  The funds must be used to 
        promote and market the Great River 
        Shakespeare Festival.  To develop 
        maximum private sector involvement in 
        marketing the festival, $60,000 must be 
        matched by nonstate sources. 
        Sec. 7.  LABOR AND INDUSTRY
        Subdivision 1.  Total
        Appropriation                         22,919,000     22,919,000
                      Summary by Fund
        General               2,872,000     2,872,000
        Workers'
        Compensation         19,297,000    19,297,000
        Workforce
        Development             750,000       750,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Workers' Compensation
            10,371,000     10,371,000 
        This appropriation is from the workers' 
        compensation fund. 
        Up to $150,000 the first year and up to 
        $150,000 the second year are for grants 
        to the Vinland Center for 
        rehabilitation services.  The grants 
        shall be distributed as the department 
        refers injured workers to the Vinland 
        Center to receive rehabilitation 
        services. 
        Subd. 3.  Workplace Services
             7,261,000      7,261,000 
                      Summary by Fund
        General               2,872,000     2,872,000
        Workers'
        Compensation          3,639,000     3,639,000
        Workforce
        Development             750,000       750,000
        $650,000 each year is from the 
        workforce development fund for the 
        apprenticeship program under Minnesota 
        Statutes, chapter 178. 
        $100,000 the first year and $100,000 
        the second year are for labor education 
        and advancement program grants.  This 
        appropriation is from the workforce 
        development fund. 
        The annual license fees authorized 
        under Minnesota Statutes, section 
        326.48, and detailed in Minnesota 
        Rules, part 5230.0100, subpart 3, shall 
        increase $20 for a journeyman 
        high-pressure piping pipefitter 
        license, $20 for a high-pressure piping 
        contracting pipefitter, $10 for an 
        inactive license, and $100 for a 
        high-pressure pipefitting business 
        license. 
        The permit filing and inspection fees 
        authorized under Minnesota Statutes, 
        section 326.47, and detailed in 
        Minnesota Rules, part 5230.0100, 
        subpart 4, shall be increased as 
        follows:  the filing of a permit 
        application shall be increased $50, the 
        minimum high-pressure piping inspection 
        fee shall be increased $50, and the 
        schedule of inspection fee rates shall 
        be increased by ten percent. 
        Subd. 4.  General Support
             5,287,000      5,287,000 
        This appropriation is from the workers' 
        compensation fund. 
        The commissioner of labor and industry 
        shall report to the 2006 legislature on 
        the safety and education program for 
        Minnesota loggers under Minnesota 
        Statutes, section 176.130. 
        Sec. 8.  BUREAU OF MEDIATION SERVICES 
        Subdivision 1.  Total
        Appropriation                          1,773,000      1,773,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Mediation Services 
             1,673,000      1,673,000
        Subd. 3.  Labor Management 
        Cooperation Grants
               100,000        100,000
        $100,000 each year is for onetime 
        grants to area labor-management 
        committees.  Grants may be awarded for 
        a 12-month period beginning July 1 of 
        each year.  Any unencumbered balance 
        remaining at the end of the first year 
        does not cancel but is available for 
        the second year. 
        Sec. 9.  WORKERS' COMPENSATION
        COURT OF APPEALS                       1,618,000      1,618,000 
        This appropriation is from the workers' 
        compensation fund. 
        Sec. 10.  MINNESOTA HISTORICAL
        SOCIETY
        Subdivision 1.  Total
        Appropriation                         23,317,000     23,133,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Education and
        Outreach                          
            13,191,000     13,191,000
        Of this amount, $60,000 each year is to 
        offset the revenue loss from not 
        charging fees for general tours at the 
        Capitol.  Notwithstanding Minnesota 
        Statutes, section 138.668, the 
        Minnesota Historical Society may not 
        charge a fee for its general tours at 
        the Capitol, but may charge fees for 
        special programs other than general 
        tours.  This appropriation is part of 
        the society's budget base. 
        $700,000 the first year and $700,000 
        the second year are to operate historic 
        sites including:  Kelley Farm, Hill 
        House, Lower Sioux Agency, Fort 
        Ridgely, Historic Forestville, the 
        Forest History Center, and the Comstock 
        House.  In order to maximize public 
        access to historic sites, the Minnesota 
        Historical Society shall work with 
        interested communities or individuals 
        who are willing to provide financial or 
        in-kind support for site operations.  
        This appropriation is part of the 
        Minnesota Historical Society's base 
        budget.  This paragraph is effective 
        the day following final enactment. 
        $50,000 the first year and $50,000 the 
        second year are to assist the Minnesota 
        Sesquicentennial Commission for 
        planning and support of its mission. 
        This is a onetime appropriation and is 
        available until January 30, 2009. 
        Subd. 3.  Preservation and Access
             9,772,000      9,772,000
        Subd. 4.  Fiscal Agent         
               354,000        170,000 
        (a) Minnesota International Center 
                43,000         42,000 
        (b) Minnesota Air National   
        Guard Museum 
                16,000          -0-     
        (c) Minnesota Military Museum 
                67,000          -0-     
        (d) Farmamerica              
               128,000        128,000 
        Notwithstanding any other law, this 
        appropriation may be used for 
        operations. 
        (e) $100,000 is appropriated from the 
        general fund to the Minnesota 
        Historical Society for a onetime grant 
        to Otter Tail County for the redesign, 
        furnishing, and equipping of a Veterans 
        Museum in Perham.  This appropriation 
        is available until spent. 
        (f) Balances Forward         
        Any unencumbered balance remaining in 
        this subdivision the first year does 
        not cancel but is available for the 
        second year of the biennium. 
        Subd. 5.  Fund Transfer
        The Minnesota Historical Society may 
        reallocate funds appropriated in and 
        between subdivisions 2 and 3 for any 
        program purposes. 
        Sec. 11.  BOARD OF THE ARTS
        Subdivision 1.  Total
        Appropriation                          8,593,000      8,593,000
        If the appropriation for either year is 
        insufficient, the appropriation for the 
        other year is available. 
        Subd. 2.  Operations and Services      
               404,000        404,000
        Subd. 3.  Grants Programs           
             5,767,000      5,767,000
        Subd. 4.  Regional Arts
        Councils                              
             2,422,000      2,422,000
        Sec. 12.  BOARD OF
        ACCOUNTANCY                              487,000        487,000 
        Effective the day following final 
        enactment and no later than June 30, 
        2006, the Board of Accountancy shall 
        combine its administrative functions 
        with those of the Board of 
        Architecture, Engineering, Land 
        Surveying, Landscape Architecture, 
        Geoscience, and Interior Design.  Both 
        appointed boards shall remain intact, 
        and both shall maintain their status as 
        separate state boards.  
        Sec. 13.  BOARD OF ARCHITECTURE,
        ENGINEERING, LAND SURVEYING,
        LANDSCAPE ARCHITECTURE, GEOSCIENCE,
        AND INTERIOR DESIGN                      785,000        785,000 
        Sec. 14.  BOARD OF BARBER    
        AND COSMETOLOGISTS EXAMINERS             699,000        699,000 
        Sec. 15.  PUBLIC UTILITIES
        COMMISSION                             4,163,000      4,163,000 
        Sec. 16.  BOARD OF ELECTRICITY
        On or before June 30, 2006, the board 
        shall transfer $4,000,000 from the 
        special revenue fund to the general 
        fund. 
           Sec. 17.  [FUND TRANSFER.] 
           By June 30, 2007, the commissioner of the Pollution Control 
        Agency shall transfer $4,000,000 from the metropolitan landfill 
        contingency action trust account within the remediation fund to 
        the commissioner of finance for transfer to the renewable 
        development account, under Minnesota Statutes, section 
        116C.779.  This is a onetime transfer from the metropolitan 
        landfill contingency action trust account to the renewable 
        development account.  It is the intent of the legislature to 
        restore these funds to the metropolitan landfill contingency 
        action trust account as revenues become available in the future 
        to ensure the state meets future financial obligations under 
        Minnesota Statutes, section 473.845.  The funds provided for in 
        this transfer may only be used to make the incentive payments 
        for wind energy conversion systems authorized under Minnesota 
        Statutes, section 116C.779, subdivision 2. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 

                                   ARTICLE 4 
                         JOBS AND ECONOMIC DEVELOPMENT 
                               POLICY PROVISIONS 
           Section 1.  Minnesota Statutes 2004, section 3.303, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [ECONOMIC STATUS OF WOMEN.] The commission shall 
        study and report to the legislature on all matters relating to 
        the economic status of women in Minnesota, including: 
           (1) the contributions of women to the economy; 
           (2) economic security of homemakers and women in the labor 
        force; 
           (3) opportunities for education and vocational training; 
           (4) employment opportunities; 
           (5) women's access to benefits and services provided to 
        citizens of this state; and 
           (6) laws and business practices constituting barriers to 
        the full participation by women in the economy. 
        The commission shall also study the adequacy of programs and 
        services relating to families in Minnesota.  The commission 
        shall communicate its findings and make recommendations to the 
        legislature on an ongoing basis. 
           Sec. 2.  Minnesota Statutes 2004, section 41A.09, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [DEFINITIONS.] For the purposes of this section, 
        the terms defined in this subdivision have the meanings given 
        them. 
           (a) "Ethanol" means fermentation ethyl alcohol derived from 
        agricultural products, including potatoes, cereal grains, cheese 
        whey, and sugar beets; forest products; or other renewable 
        resources, including residue and waste generated from the 
        production, processing, and marketing of agricultural products, 
        forest products, and other renewable resources, that: 
           (1) meets all of the specifications in ASTM specification 
        D4806-01 D4806-04a; and 
           (2) is denatured as specified in Code of Federal 
        Regulations, title 27, parts 20 and 21. 
           (b) "Ethanol plant" means a plant at which ethanol is 
        produced. 
           (c) "Commissioner" means the commissioner of agriculture. 
           Sec. 3.  [45.23] [LICENSE EDUCATION.] 
           The following fees must be paid to the commissioner: 
           (1) initial course approval, $10 for each hour or fraction 
        of one hour of education course approval sought.  Initial course 
        approval expires on the last day of the 24th month after the 
        course is approved; 
           (2) renewal of course approval, $10 per course.  Renewal of 
        course approval expires on the last day of the 24th month after 
        the course is renewed; 
           (3) initial coordinator approval, $100.  Initial 
        coordinator approval expires on the last day of the 24th month 
        after the coordinator is approved; and 
           (4) renewal of coordinator approval, $10.  Renewal of 
        coordinator approval expires on the last day of the 24th month 
        after the coordinator is renewed. 
           Sec. 4.  Minnesota Statutes 2004, section 60A.14, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FEES OTHER THAN EXAMINATION FEES.] In 
        addition to the fees and charges provided for examinations, the 
        following fees must be paid to the commissioner for deposit in 
        the general fund: 
           (a) by township mutual fire insurance companies; 
           (1) for filing certificate of incorporation $25 and 
        amendments thereto, $10; 
           (2) for filing annual statements, $15; 
           (3) for each annual certificate of authority, $15; 
           (4) for filing bylaws $25 and amendments thereto, $10; 
           (b) by other domestic and foreign companies including 
        fraternals and reciprocal exchanges; 
           (1) for filing an application for an initial certification 
        of authority to be admitted to transact business in this state, 
        $1,500; 
           (2) for filing certified copy of certificate of articles of 
        incorporation, $100; 
           (2) (3) for filing annual statement, $225; 
           (3) (4) for filing certified copy of amendment to 
        certificate or articles of incorporation, $100; 
           (4) (5) for filing bylaws, $75 or amendments thereto, $75; 
           (5) (6) for each company's certificate of authority, $575, 
        annually; 
           (c) the following general fees apply: 
           (1) for each certificate, including certified copy of 
        certificate of authority, renewal, valuation of life policies, 
        corporate condition or qualification, $25; 
           (2) for each copy of paper on file in the commissioner's 
        office 50 cents per page, and $2.50 for certifying the same; 
           (3) for license to procure insurance in unadmitted foreign 
        companies, $575; 
           (4) for valuing the policies of life insurance companies, 
        one cent per $1,000 of insurance so valued, provided that the 
        fee shall not exceed $13,000 per year for any company.  The 
        commissioner may, in lieu of a valuation of the policies of any 
        foreign life insurance company admitted, or applying for 
        admission, to do business in this state, accept a certificate of 
        valuation from the company's own actuary or from the 
        commissioner of insurance of the state or territory in which the 
        company is domiciled; 
           (5) for receiving and filing certificates of policies by 
        the company's actuary, or by the commissioner of insurance of 
        any other state or territory, $50; 
           (6) for each appointment of an agent filed with the 
        commissioner, $10; 
           (7) for filing forms and rates, $75 per filing, which may 
        be paid on a quarterly basis in response to an invoice.  Billing 
        and payment may be made electronically; 
           (8) for annual renewal of surplus lines insurer license, 
        $300; 
           (9) $250 filing fee for a large risk alternative rating 
        option plan that meets the $250,000 threshold requirement. 
           The commissioner shall adopt rules to define filings that 
        are subject to a fee. 
           Sec. 5.  Minnesota Statutes 2004, section 60K.55, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LICENSING FEES.] (a) In addition to fees 
        provided for examinations, each insurance producer licensed 
        under this chapter shall pay to the commissioner a fee of: 
           (1) $40 $50 for an initial life, accident and health, 
        property, or casualty license issued to an individual insurance 
        producer, and a fee of $40 $50 for each renewal; 
           (2) $75 $50 for an initial variable life and variable 
        annuity license issued to an individual insurance producer, and 
        a fee of $50 for each renewal; 
           (3) $80 $50 for an initial personal lines license issued to 
        an individual insurance producer, and a fee of $80 $50 for each 
        renewal; 
           (4) $80 $50 for an initial limited lines license issued to 
        an individual insurance producer, and a fee of $80 $50 for each 
        renewal; 
           (5) $200 for an initial license issued to a business 
        entity, and a fee of $150 $200 for each renewal; and 
           (6) $500 for an initial surplus lines license, and a fee of 
        $500 for each renewal. 
           (b) Initial licenses issued under this chapter are valid 
        for a period not to exceed 24 months and expire on October 31 of 
        the renewal year assigned by the commissioner.  Each renewal 
        insurance producer license is valid for a period of 24 months.  
        Licensees who submit renewal applications postmarked or 
        delivered on or before October 15 of the renewal year may 
        continue to transact business whether or not the renewal license 
        has been received by November 1.  Licensees who submit 
        applications postmarked or delivered after October 15 of the 
        renewal year must not transact business after the expiration 
        date of the license until the renewal license has been received. 
           (c) All fees are nonreturnable, except that an overpayment 
        of any fee may be refunded upon proper application.  
           Sec. 6.  Minnesota Statutes 2004, section 72B.04, 
        subdivision 10, is amended to read: 
           Subd. 10.  [FEES.] A fee of $80 $50 is imposed for each 
        initial license or temporary permit and $80 $50 for each renewal 
        thereof or amendment thereto.  A fee of $20 is imposed for the 
        registration of each nonlicensed adjuster who is required to 
        register under section 72B.06.  All fees shall be transmitted to 
        the commissioner and shall be payable to the Department of 
        Commerce. 
           Sec. 7.  Minnesota Statutes 2004, section 82B.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERS.] The Real Estate Appraiser 
        Advisory Board consists of 15 members appointed by the 
        commissioner of commerce.  Three of the members must be public 
        members, four must be consumers of appraisal services, and eight 
        must be real estate appraisers of whom not less than two members 
        shall be registered real property appraisers, licensed real 
        property appraisers, or certified residential real property 
        appraisers and, not less than two members shall be certified 
        general real property appraisers, and not less than one member 
        shall be certified by the Appraisal Qualification Board of the 
        Appraisal Foundation to teach the Uniform Standards of 
        Professional Appraisal Practice.  The board is governed by 
        section 15.0575. 
           Sec. 8.  Minnesota Statutes 2004, section 82B.05, 
        subdivision 5, is amended to read: 
           Subd. 5.  [CONDUCT OF MEETINGS.] Places of regular board 
        meetings must be decided by the vote of members.  Written notice 
        must be given to each member of the time and place of each 
        meeting of the board at least ten days before the scheduled date 
        of regular board meetings.  The board shall establish procedures 
        for emergency board meetings and other operational procedures, 
        subject to the approval of the commissioner.  
           The members of the board shall elect a chair from among the 
        members to preside at board meetings. 
           A quorum of the board is eight members.  
           The board shall meet at least once every six months as 
        determined by a majority vote of the members or a call of the 
        commissioner. 
           Sec. 9.  Minnesota Statutes 2004, section 82B.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AMOUNTS.] The following fees must be paid 
        to the commissioner:  
           (1) $150 for each initial individual real estate 
        appraiser's license:  $150 if the license expires more than 12 
        months after issuance, $100 if the license expires less than 12 
        months after issuance; and a fee of 
           (2) $100 for each renewal. 
           Sec. 10.  Minnesota Statutes 2004, section 115C.07, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RULES.] (a) The board shall adopt rules 
        regarding its practices and procedures, the form and procedure 
        for applications for compensation from the fund, procedures for 
        investigation of claims and specifying the costs that are 
        eligible for reimbursement from the fund.  
           (b) The board may adopt rules requiring certification of 
        environmental consultants. 
           (c) The board may adopt other rules necessary to implement 
        this chapter. 
           (d) The board may use section 14.389 to adopt rules 
        specifying the competitive bidding requirements for consultant 
        services proposals. 
           (e) The board may use section 14.389 to adopt rules 
        specifying the written proposal and invoice requirements for 
        consultant services. 
           Sec. 11.  Minnesota Statutes 2004, section 115C.09, 
        subdivision 3h, is amended to read: 
           Subd. 3h.  [REIMBURSEMENT; ABOVEGROUND TANKS IN BULK 
        PLANTS.] (a) As used in this subdivision, "bulk plant" means an 
        aboveground or underground tank facility with a storage capacity 
        of more than 1,100 gallons but less than 1,000,000 gallons that 
        is used to dispense petroleum into cargo tanks for 
        transportation and sale at another location. 
           (b) Notwithstanding any other provision in this chapter and 
        any rules adopted pursuant to this chapter, the board shall 
        reimburse 90 percent of an applicant's cost for bulk plant 
        upgrades or closures completed between June 1, 1998, and 
        November 1, 2003, to comply with Minnesota Rules, chapter 7151, 
        provided that the board determines the costs were incurred and 
        reasonable.  The reimbursement may not exceed $10,000 per bulk 
        plant.  The board may provide reimbursement under this paragraph 
        for work completed after November 1, 2003, if the work was 
        contracted for prior to that date and was not completed by that 
        date as a result of an unanticipated situation, provided that an 
        application for reimbursement under this paragraph, which may be 
        a renewal of an application previously denied, is submitted 
        prior to December 31, 2005.  
           (c) For corrective action at a bulk plant located on what 
        is or was railroad right-of-way, the board shall reimburse 90 
        percent of total reimbursable costs on the first $40,000 of 
        reimbursable costs and 100 percent of any remaining reimbursable 
        costs when the applicant can document that more than one bulk 
        plant was operated on the same section of right-of-way, as 
        determined by the commissioner of commerce. 
           Sec. 12.  Minnesota Statutes 2004, section 115C.09, 
        subdivision 3j, is amended to read: 
           Subd. 3j.  [RETAIL LOCATIONS AND TRANSPORT VEHICLES.] (a) 
        As used in this subdivision, "retail location" means a facility 
        located in the metropolitan area as defined in section 473.121, 
        subdivision 2, where gasoline is offered for sale to the general 
        public for use in automobiles and trucks.  "Transport vehicle" 
        means a liquid fuel cargo tank used to deliver gasoline into 
        underground storage tanks during 2002 and 2003 at a retail 
        location. 
           (b) Notwithstanding any other provision in this chapter, 
        and any rules adopted under this chapter, the board shall 
        reimburse 90 percent of an applicant's cost for retrofits of 
        retail locations and transport vehicles completed between 
        January 1, 2001, and January 1, 2006, to comply with section 
        116.49, subdivisions 3 and 4, provided that the board determines 
        the costs were incurred and reasonable.  The reimbursement may 
        not exceed $3,000 per retail location and $3,000 per transport 
        vehicle. 
           Sec. 13.  Minnesota Statutes 2004, section 115C.13, is 
        amended to read: 
           115C.13 [REPEALER.] 
           Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 
        115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 
        115C.093, 115C.094, 115C.10, 115C.11, 115C.111, 115C.112, 
        115C.113, 115C.12, and 115C.13, are repealed effective June 30, 
        2007 2012. 
           Sec. 14.  Minnesota Statutes 2004, section 116C.779, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RENEWABLE ENERGY PRODUCTION INCENTIVE.] (a) 
        Until January 1, 2018, up to $6,000,000 $10,900,000 annually 
        must be allocated from available funds in the account to fund 
        renewable energy production incentives.  $4,500,000 $9,400,000 
        of this annual amount is for incentives for up to 100 200 
        megawatts of electricity generated by wind energy conversion 
        systems that are eligible for the incentives under section 
        216C.41.  The balance of this amount, up to $1,500,000 annually, 
        may be used for production incentives for on-farm biogas 
        recovery facilities that are eligible for the incentive under 
        section 216C.41 or for production incentives for other 
        renewables, to be provided in the same manner as under section 
        216C.41.  Any portion of the $6,000,000 $10,900,000 not expended 
        in any calendar year for the incentive is available for other 
        spending purposes under this section.  This subdivision does not 
        create an obligation to contribute funds to the account.  
           (b) The Department of Commerce shall determine eligibility 
        of projects under section 216C.41 for the purposes of this 
        subdivision.  At least quarterly, the Department of Commerce 
        shall notify the public utility of the name and address of each 
        eligible project owner and the amount due to each project under 
        section 216C.41.  The public utility shall make payments within 
        15 working days after receipt of notification of payments due. 
           Sec. 15.  Minnesota Statutes 2004, section 116J.551, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GRANT ACCOUNT.] A contaminated site 
        cleanup and development grant account is created in the general 
        fund.  Money in the account may be used, as appropriated by law, 
        to make grants as provided in section 116J.554 and to pay for 
        the commissioner's costs in reviewing applications and making 
        grants.  Notwithstanding section 16A.28, money appropriated to 
        the account is available for four years. 
           Sec. 16.  Minnesota Statutes 2004, section 116J.571, is 
        amended to read: 
           116J.571 [CREATION OF ACCOUNTS.] 
           Two greater Minnesota redevelopment accounts are created, 
        one in the general fund and one in the bond proceeds fund.  
        Money in the accounts may be used to make grants as provided in 
        section 116J.575.  Money in the bond proceeds fund may only be 
        used for eligible costs for publicly owned property.  Money in 
        the general fund may be used and to pay for the commissioner's 
        costs in reviewing the applications and making grants. 
           Sec. 17.  Minnesota Statutes 2004, section 116J.572, is 
        amended to read: 
           116J.572 [DEFINITIONS.] 
           Subdivision 1.  [SCOPE OF APPLICATION.] For purposes of 
        sections 116J.571 to 116J.575, the terms in this section have 
        the meanings given. 
           Subd. 2.  [DEVELOPMENT AUTHORITY.] "Development authority" 
        includes a statutory or home rule charter city, county, housing 
        and redevelopment authority, economic development authority, or 
        port authority located outside. 
           Subd. 2a.  [METROPOLITAN AREA.] "Metropolitan area" means 
        the seven-county metropolitan area, as defined in section 
        473.121, subdivision 2. 
           Subd. 2b.  [MUNICIPALITY.] "Municipality" means the 
        statutory or home rule charter city, town, or, in the case of 
        unorganized territory, county in which the redevelopment is 
        located. 
           Subd. 3.  [ELIGIBLE REDEVELOPMENT COSTS OR COSTS.] 
        "Eligible Redevelopment costs" or "costs" means the costs of 
        land acquisition, stabilizing unstable soils when infill is 
        required, demolition, infrastructure improvements, and ponding 
        or other environmental infrastructure; building construction, 
        design and engineering; and costs necessary for adaptive reuse 
        of buildings, including remedial activities.  Eligible costs do 
        not include project administration and legal fees. 
           Subd. 4.  [REDEVELOPMENT.] "Redevelopment" means recycling 
        obsolete, abandoned, or underutilized properties for new 
        industrial, commercial, or residential uses. 
           Sec. 18.  Minnesota Statutes 2004, section 116J.574, is 
        amended to read: 
           116J.574 [GRANT APPLICATIONS.] 
           Subdivision 1.  [APPLICATION REQUIRED.] To obtain a 
        redevelopment grant, a development authority shall apply to the 
        commissioner.  The governing body of the municipality must 
        approve the application by resolution. 
           Subd. 2.  [REQUIRED CONTENT.] The commissioner shall 
        prescribe and provide the application form.  The application 
        must include at least the following information: 
           (1) identification of the site; 
           (2) a redevelopment plan for the site; 
           (3) a detailed budget estimate, including along with 
        necessary supporting evidence, of the total redevelopment costs 
        for the site including the total eligible redevelopment costs; 
           (3) a complete (4) an assessment of the development 
        potential or likely use of the site after completion of the 
        redevelopment plan, including any specific commitments from 
        third parties to construct improvements on the site; 
           (4) a complete financing plan, including (5) the manner in 
        which the development authority uses innovative financial 
        partnerships between government, private for-profit, and 
        nonprofit sectors municipality will meet the local match 
        requirement; and 
           (5) (6) any additional information or material that the 
        commissioner prescribes. 
           Sec. 19.  Minnesota Statutes 2004, section 116J.575, as 
        amended by Laws 2005, chapter 20, article 1, section 33, is 
        amended to read: 
           116J.575 [GRANTS.] 
           Subdivision 1.  [COMMISSIONER DISCRETION.] The commissioner 
        may make a grant for up to 50 percent of the eligible costs of a 
        project.  The determination of whether to make a grant for a 
        site is within the discretion of the commissioner, subject to 
        this section and sections 116J.571 to 116J.574 and available 
        unencumbered money in the greater Minnesota redevelopment 
        account.  Notwithstanding section 116J.573, if the commissioner 
        determines that the applications for grants for projects in 
        greater Minnesota are less than the amount of grant funds 
        available, the commissioner may make grants for projects 
        anywhere in Minnesota.  The commissioner's decisions and 
        application of the priorities under this section are not subject 
        to judicial review, except for abuse of discretion. 
           Subd. 1a.  [PRIORITIES.] (a) If applications for grants 
        exceed the available appropriations, grants shall be made for 
        sites that, in the commissioner's judgment, provide the highest 
        return in public benefits for the public costs incurred.  
        "Public benefits" include job creation, bioscience development, 
        environmental benefits to the state and region, efficient use of 
        public transportation, efficient use of existing infrastructure, 
        provision of affordable housing, multiuse development that 
        constitutes community rebuilding rather than single-use 
        development, crime reduction, blight reduction, community 
        stabilization, and property tax base maintenance or 
        improvement.  In making this judgment, the commissioner shall 
        give priority to redevelopment projects with one or more of the 
        following characteristics: 
           (1) the need for redevelopment in conjunction with 
        contamination remediation needs; 
           (2) the redevelopment project meets current tax increment 
        financing requirements for a redevelopment district and tax 
        increments will contribute to the project; 
           (3) the redevelopment potential within the municipality; 
           (4) proximity to public transit if located in the 
        metropolitan area; and 
           (5) multijurisdictional projects that take into account the 
        need for affordable housing, transportation, and environmental 
        impact. 
           (b) The factors in paragraph (a) are not listed in a rank 
        order of priority; rather, the commissioner may weigh each 
        factor, depending upon the facts and circumstances, as the 
        commissioner considers appropriate.  
           Subd. 2.  [APPLICATION CYCLES.] In making grants, the 
        commissioner shall establish semiannual application deadlines in 
        which grants will be authorized from all or part of the 
        available money in the account. 
           Subd. 3.  [MATCH REQUIRED.] In order to qualify for a grant 
        under sections 116J.571 to 116J.575, the municipality must pay 
        for at least one-half of the redevelopment costs as a local 
        match from any money available to the municipality. 
           Sec. 20.  Minnesota Statutes 2004, section 116J.63, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FEES.] (a) Fees for reports, publications, or 
        related publicity or promotional material are not subject to the 
        rulemaking requirements of chapter 14 and are not subject to 
        section 16A.1285.  The fees prescribed by the commissioner must 
        be commensurate with the distribution objective of the 
        department for the material produced or with the cost of 
        furnishing the services.  Except as described in paragraph (b), 
        all fees for materials and services must be deposited in the 
        general fund. 
           (b) The commissioner may sell marketing materials at cost 
        to economic development organizations and others in quantities 
        that would not otherwise be available through general fund 
        appropriations.  Funds received must be placed in a special 
        revolving account and are appropriated to the commissioner to 
        pay for the production of the materials. 
           Sec. 21.  Minnesota Statutes 2004, section 116J.8731, 
        subdivision 5, is amended to read: 
           Subd. 5.  [GRANT LIMITS.] A Minnesota investment fund grant 
        may not be approved for an amount in excess of $1,000,000.  This 
        limit covers all money paid to complete the same project, 
        whether paid to one or more grant recipients and whether paid in 
        one or more fiscal years.  The portion A local community or 
        recognized Indian tribal government may retain 20 percent, but 
        not more than $100,000 of a Minnesota investment fund grant that 
        exceeds $100,000 must be repaid to the state when it is repaid 
        to the local community or recognized Indian tribal government by 
        the person or entity to which it was loaned by the local 
        community or Indian tribal government.  Money repaid to the 
        state must be credited to a Minnesota investment revolving loan 
        account in the state treasury.  Funds in the account are 
        appropriated to the commissioner and must be used in the same 
        manner as are funds appropriated to the Minnesota investment 
        fund.  Funds repaid to the state through existing Minnesota 
        investment fund agreements must be credited to the Minnesota 
        investment revolving loan account effective July 1, 2003 2005.  
        A grant or loan may not be made to a person or entity for the 
        operation or expansion of a casino or a store which is used 
        solely or principally for retail sales.  Persons or entities 
        receiving grants or loans must pay each employee total 
        compensation, including benefits not mandated by law, that on an 
        annualized basis is equal to at least 110 percent of the federal 
        poverty level for a family of four. 
           Sec. 22.  Minnesota Statutes 2004, section 116J.8747, 
        subdivision 2, is amended to read: 
           Subd. 2.  [QUALIFIED JOB TRAINING PROGRAM.] To qualify for 
        grants under this section, a job training program must satisfy 
        the following requirements: 
           (1) the program must be operated by a nonprofit corporation 
        that qualifies under section 501(c)(3) of the Internal Revenue 
        Code; 
           (2) the program must spend at least $15,000 per graduate of 
        the program; 
           (3) the program must provide education and training in: 
           (i) basic skills, such as reading, writing, mathematics, 
        and communications; 
           (ii) thinking skills, such as reasoning, creative thinking, 
        decision making, and problem solving; and 
           (iii) personal qualities, such as responsibility, 
        self-esteem, self-management, honesty, and integrity; 
           (4) the program must provide income supplements, when 
        needed, to participants for housing, counseling, tuition, and 
        other basic needs; 
           (5) the program's education and training course must last 
        for an average of at least six months; 
           (6) individuals served by the program must: 
           (i) be 18 years of age or older; 
           (ii) have federal adjusted gross income of no more than 
        $11,000 per year in the two years calendar year immediately 
        before entering the program; 
           (iii) have assets of no more than $7,000, excluding the 
        value of a homestead; and 
           (iv) not have been claimed as a dependent on the federal 
        tax return of another person in the previous taxable year; and 
           (7) the program must be certified by the commissioner of 
        employment and economic development as meeting the requirements 
        of this subdivision. 
           Sec. 23.  Minnesota Statutes 2004, section 116J.994, 
        subdivision 7, is amended to read: 
           Subd. 7.  [REPORTS BY RECIPIENTS TO GRANTORS.] (a) A 
        business subsidy grantor must monitor the progress by the 
        recipient in achieving agreement goals. 
           (b) A recipient must provide information regarding goals 
        and results for two years after the benefit date or until the 
        goals are met, whichever is later.  If the goals are not met, 
        the recipient must continue to provide information on the 
        subsidy until the subsidy is repaid.  The information must be 
        filed on forms developed by the commissioner in cooperation with 
        representatives of local government.  Copies of the completed 
        forms must be sent to the local government agency that provided 
        the subsidy or to the commissioner if the grantor is a state 
        agency.  If the Iron Range Resources and Rehabilitation Board is 
        the grantor, the copies must be sent to the board.  The report 
        must include: 
           (1) the type, public purpose, and amount of subsidies and 
        type of district, if the subsidy is tax increment financing; 
           (2) the hourly wage of each job created with separate bands 
        of wages; 
           (3) the sum of the hourly wages and cost of health 
        insurance provided by the employer with separate bands of wages; 
           (4) the date the job and wage goals will be reached; 
           (5) a statement of goals identified in the subsidy 
        agreement and an update on achievement of those goals; 
           (6) the location of the recipient prior to receiving the 
        business subsidy; 
           (7) the number of employees who ceased to be employed by 
        the recipient when the recipient relocated to become eligible 
        for the business subsidy; 
           (8) why the recipient did not complete the project outlined 
        in the subsidy agreement at their previous location, if the 
        recipient was previously located at another site in Minnesota; 
           (8) (9) the name and address of the parent corporation of 
        the recipient, if any; 
           (9) (10) a list of all financial assistance by all grantors 
        for the project; and 
           (10) (11) other information the commissioner may request. 
        A report must be filed no later than March 1 of each year for 
        the previous year.  The local agency and the Iron Range 
        Resources and Rehabilitation Board must forward copies of the 
        reports received by recipients to the commissioner by April 1.  
           (c) Financial assistance that is excluded from the 
        definition of "business subsidy" by section 116J.993, 
        subdivision 3, clauses (4), (5), (8), and (16), is subject to 
        the reporting requirements of this subdivision, except that the 
        report of the recipient must include instead:  
           (1) the type, public purpose, and amount of the financial 
        assistance, and type of district if the assistance is tax 
        increment financing; 
           (2) progress towards meeting goals stated in the assistance 
        agreement and the public purpose of the assistance; 
           (3) if the agreement includes job creation, the hourly wage 
        of each job created with separate bands of wages; 
           (4) if the agreement includes job creation, the sum of the 
        hourly wages and cost of health insurance provided by the 
        employer with separate bands of wages; 
           (5) the location of the recipient prior to receiving the 
        assistance; and 
           (6) other information the grantor requests. 
           (d) If the recipient does not submit its report, the local 
        government agency must mail the recipient a warning within one 
        week of the required filing date.  If, after 14 days of the 
        postmarked date of the warning, the recipient fails to provide a 
        report, the recipient must pay to the grantor a penalty of $100 
        for each subsequent day until the report is filed.  The maximum 
        penalty shall not exceed $1,000.  
           Sec. 24.  Minnesota Statutes 2004, section 116J.994, 
        subdivision 9, is amended to read: 
           Subd. 9.  [COMPILATION AND SUMMARY REPORT.] The Department 
        of Employment and Economic Development must publish a 
        compilation and summary of the results of the reports for the 
        previous two calendar years by December 1 of 2004 and every 
        other year thereafter.  The reports of the government agencies 
        to the department and the compilation and summary report of the 
        department must be made available to the public. 
           The commissioner must coordinate the production of reports 
        so that useful comparisons across time periods and across 
        grantors can be made.  The commissioner may add other 
        information to the report as the commissioner deems necessary to 
        evaluate business subsidies.  Among the information in the 
        summary and compilation report, the commissioner must include: 
           (1) total amount of subsidies awarded in each development 
        region of the state; 
           (2) distribution of business subsidy amounts by size of the 
        business subsidy; 
           (3) distribution of business subsidy amounts by time 
        category; 
           (4) distribution of subsidies by type and by public 
        purpose; 
           (5) percent of all business subsidies that reached their 
        goals; 
           (6) percent of business subsidies that did not reach their 
        goals by two years from the benefit date; 
           (7) total dollar amount of business subsidies that did not 
        meet their goals after two years from the benefit date; 
           (8) percent of subsidies that did not meet their goals and 
        that did not receive repayment; 
           (9) list of recipients that have failed to meet the terms 
        of a subsidy agreement in the past five years and have not 
        satisfied their repayment obligations; 
           (10) number of part-time and full-time jobs within separate 
        bands of wages for the entire state and for each development 
        region of the state; and 
           (11) benefits paid within separate bands of wages for the 
        entire state and for each development region of the state; and 
           (12) number of employees in the entire state and in each 
        development region of the state who ceased to be employed 
        because their employers relocated to become eligible for a 
        business subsidy.  
           Sec. 25.  Minnesota Statutes 2004, section 116L.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPOINTMENT.] The Minnesota Job Skills 
        Partnership Board consists of:  seven members appointed by the 
        governor, the chair of the governor's Workforce Development 
        Council, the commissioner of employment and economic 
        development, the chancellor, or the chancellor's designee, of 
        the Minnesota State Colleges and Universities, the president, or 
        the president's designee, of the University of Minnesota, and 
        two nonlegislator members, one appointed by the Subcommittee on 
        Committees of the senate Committee on Rules and Administration 
        and one appointed by the speaker of the house.  If the 
        chancellor or the president of the university makes a 
        designation under this subdivision, the designee must have 
        experience in technical education.  Four of the appointed 
        members must be members of the governor's Workforce Development 
        Council, of whom two must represent organized labor and two must 
        represent business and industry.  One of the appointed members 
        must be a representative of a nonprofit organization that 
        provides workforce development or job training services. 
           Sec. 26.  Minnesota Statutes 2004, section 116L.05, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [USE OF WORKFORCE DEVELOPMENT FUNDS.] After March 
        1 of any fiscal year, the board may use workforce development 
        funds for the purposes outlined in sections 116L.04, 116L.06, 
        and 116L.10 to 116L.14, or to provide incumbent worker training 
        services under section 116L.18 if the following conditions have 
        been met: 
           (1) the board examines relevant economic indicators, 
        including the projected number of layoffs for the remainder of 
        the fiscal year and the next fiscal year, evidence of declining 
        and expanding industries, the number of initial applications for 
        and the number of exhaustions of unemployment benefits, job 
        vacancy data, and any additional relevant information brought to 
        the board's attention; 
           (2) the board accounts for all allocations made in section 
        116L.17, subdivision 2; 
           (3) based on the past expenditures and projected revenue, 
        the board estimates future funding needs for services under 
        section 116L.17 for the remainder of the current fiscal year and 
        the next fiscal year; 
           (4) the board determines there will be unspent funds after 
        meeting the needs of dislocated workers in the current fiscal 
        year and there will be sufficient revenue to meet the needs of 
        dislocated workers in the next fiscal year; and 
           (5) the board reports its findings in clauses (1) to (4) to 
        the chairs of legislative committees with jurisdiction over the 
        workforce development fund, to the commissioners of revenue and 
        finance, and to the public. 
           Sec. 27.  [116L.18] [SPECIAL INCUMBENT WORKER TRAINING 
        GRANTS.] 
           Subdivision 1.  [PURPOSE.] The purpose of the special 
        incumbent worker training grants is to expand opportunities for 
        businesses and workers to gain new skills that are in demand in 
        the Minnesota economy.  The board shall establish criteria for 
        incumbent worker grants under this section and may encourage 
        creative training models, innovative partnerships, and expansion 
        or replication of promising practices.  
           Subd. 2.  [DEFINITIONS.] (a) For the purposes of this 
        section, the following terms have the meanings given them. 
           (b) "Incumbent worker" means an individual employed by a 
        qualifying employer.  
           (c) "Qualifying employer" means a for-profit business or 
        nonprofit organization in Minnesota with at least one full-time 
        paid employee.  Public sector organizations are not considered 
        qualifying employers.  
           (d) "Eligible organization" has the meaning given in 
        section 116L.17. 
           Subd. 3.  [AMOUNT OF GRANTS.] A grant to an eligible 
        organization may not exceed $400,000. 
           Subd. 4.  [MATCHING FUNDS.] The board shall require 
        matching funds from qualifying employers in the form of funding, 
        equipment, or faculty. 
           Subd. 5.  [USE OF FUNDS.] Eligible organizations shall use 
        funds granted under this section for direct training services to 
        provide a measurable increase in the job-related skills of 
        participating incumbent workers.  Eligible organizations may 
        also provide basic assessment, counseling, and preemployment 
        training services requested by the qualifying employer.  No 
        funds may be used for support services as described in section 
        116L.17, subdivision 4, clause (2).  
           Subd. 6.  [PERFORMANCE OUTCOME MEASURES.] The board and the 
        commissioner of employment and economic development shall 
        jointly develop performance outcome measures and standards for 
        this program.  The commissioner and board shall consult with 
        eligible organizations in establishing standards.  Measures at a 
        minimum must include posttraining retention, promotion, and wage 
        increase.  The board and commissioner shall provide a report to 
        the legislature by March 1 of each year on the previous fiscal 
        year's program performance.  Eligible organizations must provide 
        performance data in a timely manner for the completion of this 
        report. 
           Sec. 28.  Minnesota Statutes 2004, section 116L.20, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DETERMINATION AND COLLECTION OF SPECIAL 
        ASSESSMENT.] (a) In addition to amounts due from an employer 
        under the Minnesota unemployment insurance program, each 
        employer, except an employer making reimbursements is liable for 
        a special assessment levied at the rate of seven-hundredths of 
        one .10 percent per year for calendar years 2006 and 2007 on all 
        taxable wages, as defined in section 268.035, subdivision 
        24.  Beginning January 1, 2008, the special assessment shall be 
        levied at a rate of .085 percent per year on all taxable wages.  
        The assessment shall become due and be paid by each employer on 
        the same schedule and in the same manner as other amounts due 
        from an employer under section 268.051, subdivision 1. 
           (b) The special assessment levied under this section shall 
        be subject to the same requirements and collection procedures as 
        any amounts due from an employer under the Minnesota 
        unemployment insurance program. 
           [EFFECTIVE DATE.] This section is effective January 1, 2006.
           Sec. 29.  Minnesota Statutes 2004, section 116L.20, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 
        The money collected under this section shall be deposited in the 
        state treasury and credited to the workforce development fund to 
        provide for employment and training programs.  The workforce 
        development fund is created as a special account in the state 
        treasury. 
           (b) All money in the fund not otherwise appropriated or 
        transferred is appropriated to the Job Skills Partnership Board 
        for the purposes of section 116L.17 and as provided for in 
        paragraph (d).  The board must act as the fiscal agent for the 
        money and must disburse that money for the purposes of section 
        116L.17, not allowing the money to be used for any other 
        obligation of the state.  All money in the workforce development 
        fund shall be deposited, administered, and disbursed in the same 
        manner and under the same conditions and requirements as are 
        provided by law for the other special accounts in the state 
        treasury, except that all interest or net income resulting from 
        the investment or deposit of money in the fund shall accrue to 
        the fund for the purposes of the fund. 
           (c) Reimbursement for costs related to collection of the 
        special assessment shall be in an amount negotiated between the 
        commissioner and the United States Department of Labor. 
           (d) If the board determines that the conditions of section 
        116L.05, subdivision 5, have been met, the board may use funds 
        for the purposes outlined in sections 116L.04, 116L.06, and 
        116L.10 to 116L.14, or to provide incumbent worker training 
        services under section 116L.18. 
           Sec. 30.  Minnesota Statutes 2004, section 116L.666, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PURPOSE; DUTIES OF LOCAL WORKFORCE COUNCIL.] The 
        local workforce council is responsible for providing policy 
        guidance for, and exercising oversight with respect to, 
        activities conducted by local workforce centers in partnership 
        with the local unit or units of general local government within 
        the workforce service area and with the commissioner.  
           A local workforce center is a location where federal, 
        state, and local employment and training services are provided 
        to job seekers and employers. 
           A local workforce council, in accordance with an agreement 
        or agreements with the appropriate chief elected official or 
        officials and the commissioner, shall: 
           (1) determine procedures for the development of the local 
        workforce service area plan.  The procedures may provide for the 
        preparation of all or any part of the plan: 
           (i) by the council; 
           (ii) by any unit of general local or state government in 
        the workforce service area, or by an agency of that unit; or 
           (iii) by any other methods or institutions as may be 
        provided in the agreement; 
           (2) select the recipients for local grants and an 
        administrator of the local workforce service area plan.  These 
        may be the same entity or separate entities and must be chosen 
        from among the following: 
           (i) the council; 
           (ii) a unit of general local or state government in its 
        workforce service area, or an agency of that unit; 
           (iii) a nonprofit organization or corporation; or 
           (iv) any other agreed upon entity; 
           (3) jointly plan for local collaborative activities 
        including the transition of public assistance recipients to 
        employment in the public or private sectors; 
           (4) provide on-site review and oversight of program 
        performance; 
           (5) establish local priorities for service and target 
        populations; 
           (6) ensure nonduplication of services and a unified service 
        delivery system within the workforce service area; and 
           (7) ensure that local workforce centers provide meeting 
        space, free of charge, for meetings of displaced homemaker 
        programs, established under section 116L.96; and 
           (8) nominate individuals to the governor to consider for 
        membership on the governor's Workforce Development Council. 
           Sec. 31.  Minnesota Statutes 2004, section 120A.40, is 
        amended to read: 
           120A.40 [SCHOOL CALENDAR.] 
           (a) Except for learning programs during summer, flexible 
        learning year programs authorized under sections 124D.12 to 
        124D.127, and learning year programs under section 124D.128, a 
        district must not commence an elementary or secondary school 
        year before September 1 Labor Day, except as provided under 
        paragraph (b).  Days devoted to teachers' workshops may be held 
        before September 1 Labor Day.  Districts that enter into 
        cooperative agreements are encouraged to adopt similar school 
        calendars.  
           (b) A district may begin the school year on any day before 
        September 1 Labor Day to accommodate a construction or 
        remodeling project of $400,000 or more affecting a district 
        school facility.  A school district that agrees to the same 
        schedule with a school district in an adjoining state also may 
        begin the school year before Labor Day as authorized under this 
        paragraph. 
           [EFFECTIVE DATE.] This section is effective August 1, 2006. 
           Sec. 32.  Minnesota Statutes 2004, section 129D.02, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COMPENSATION.] Members shall be compensated at 
        the rate of $35 per day spent on board activities.  In addition, 
        members shall receive reimbursement for expenses in the same 
        manner and amount as state employees.  Employees of the state or 
        its political subdivisions shall not be entitled to the per 
        diem, but they shall suffer no loss in compensation or benefits 
        as a result of service on the board.  Members not entitled to 
        the per diem shall receive expenses as provided in this 
        subdivision unless the expenses are reimbursed from another 
        source as provided in section 15.0575, subdivision 3. 
           Sec. 33.  Minnesota Statutes 2004, section 161.1419, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MEMBERS.] (a) The commission shall be composed 
        of 15 members of whom: 
           (1) one shall be appointed by the commissioner of 
        transportation; 
           (2) one shall be appointed by the commissioner of natural 
        resources; 
           (3) one shall be appointed by the commissioner of 
        employment and economic development director of Explore 
        Minnesota Tourism; 
           (4) one shall be appointed by the commissioner of 
        agriculture; 
           (5) one shall be appointed by the director of the Minnesota 
        Historical Society; 
           (6) two shall be members of the senate to be appointed by 
        the Committee on Committees; 
           (7) two shall be members of the house of representatives to 
        be appointed by the speaker; 
           (8) one shall be the secretary appointed pursuant to 
        subdivision 3; and 
           (9) five shall be citizen members appointed by five citizen 
        committees established by the members appointed under clauses 
        (1) to (8), with each citizen committee established within and 
        representing each of the following geographic segments along the 
        Mississippi River: 
           (i) Lake Itasca to but not including the city of Grand 
        Rapids; 
           (ii) Grand Rapids to but not including the city of 
        Brainerd; 
           (iii) Brainerd to but not including the city of Elk River; 
           (iv) Elk River to but not including the city of Hastings; 
        and 
           (v) Hastings to the Iowa border.  
        Each citizen committee member shall be a resident of the 
        geographic segment that the committee and member represents.  
           (b) The members of the commission shall serve for a term 
        expiring at the close of each regular session of the legislature 
        and until their successors are appointed.  Successor members 
        shall be appointed by the same appointing authorities.  Members 
        may be reappointed.  Any vacancy shall be filled by the 
        appointing authority.  The commissioner of transportation, the 
        commissioner of natural resources, and the director of the 
        Minnesota Historical Society shall be ex officio members, and 
        shall be in addition to the 15 members heretofore provided for.  
        Immediately upon making the appointments to the commission the 
        appointing authorities shall so notify the Mississippi River 
        Parkway Commission, hereinafter called the National Commission, 
        giving the names and addresses of the members so appointed. 
           Sec. 34.  Minnesota Statutes 2004, section 161.1419, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [GIFTS, GRANTS, AND ENDOWMENTS.] The commission 
        may accept gifts of money, property, or services; may apply for 
        and accept grants from the United States, the state, a 
        subdivision of the state, or a person for any of its purposes; 
        may enter into an agreement required in connection with it; and 
        may hold, use, and dispose of the money, property, or services 
        in accordance with the terms of the gift, grant, or agreement 
        relating to it.  The commission may also make grants, gifts, and 
        bequests of money, property, or services and enter into 
        contracts to carry out the same.  The gift acceptance procedures 
        of sections 16A.013 to 16A.016 do not apply to this section. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 35.  Minnesota Statutes 2004, section 169.733, is 
        amended to read: 
           169.733 [WHEEL FLAPS ON TRUCK AND TRAILER.] 
           Subdivision 1.  [VEHICLES GENERALLY.] Every truck, 
        truck-tractor, trailer, semitrailer, pole trailer, and rear-end 
        dump truck, excepting rear-end dump farm trucks and military 
        vehicles of the United States, shall, must be provided with 
        wheel flaps or other suitable protection above and behind the 
        rearmost wheels of the vehicle or combination of vehicles to 
        prevent, as far as practicable, such the wheels from throwing 
        dirt, water, or other materials on the windshields of following 
        vehicles which follow.  Such The flaps or protectors shall 
        must be at least as wide as the tires they are protecting 
        and shall have a ground clearance of not more than one-fifth of 
        the horizontal distance from the center of the rearmost axle to 
        the flap under any conditions of loading or operation of the 
        motor nine inches from the ground when the vehicle is empty.  
           Subd. 2.  [VEHICLE WITH CONVEYOR BELT.] For a dump truck or 
        truck with a rigid box fastened to its frame and having a 
        conveyor belt or chain in the bottom of the vehicle which that 
        moves the cargo to the rear end of the vehicle, the flaps shall 
        must be mounted as far to the rear of the vehicle as practicable 
        and shall have a ground clearance of not more than 18 inches 
        when the vehicle is loaded. 
           Subd. 3.  [BOTTOM-DUMP VEHICLE.] In addition to meeting the 
        requirements of subdivision 1, a bottom-dump cargo vehicle 
        transporting sand, gravel, aggregate, dirt, lime rock, silica, 
        or similar material must be equipped with flaps that are mounted 
        to the rear of the axles, cover the entire width of the vehicle, 
        and a center flap between the wheel flaps, which must have a 
        ground clearance of six inches or less when the vehicle is fully 
        loaded.  
           Subd. 4.  [ALTERNATIVE REQUIREMENTS.] If the motor vehicle 
        is so designed and constructed that the above requirements are 
        accomplished by means of body construction or other means of 
        enclosure, then no such protectors or flaps shall be are 
        required. 
           Subd. 5.  [EXTENDED FLAPS.] If the rear wheels are not 
        covered at the top by fenders, body or other parts of the 
        vehicle, the flap or other protective means shall must be 
        extended at least to a point directly above the center of the 
        rearmost axle. 
           Subd. 6.  [LAMPS OR WIRING.] Lamps or wiring shall not be 
        attached to fender flaps. 
           Sec. 36.  Minnesota Statutes 2004, section 169.824, 
        subdivision 2, is amended to read: 
           Subd. 2. [GROSS VEHICLE WEIGHT OF ALL AXLES.] (a) 
        Notwithstanding the provisions of section 169.85, the gross 
        vehicle weight of all axles of a vehicle or combination of 
        vehicles shall not exceed:  
           (1) 80,000 pounds for any vehicle or combination of 
        vehicles on all state trunk highways as defined in section 
        160.02, subdivision 29, and for all routes designated under 
        section 169.832, subdivision 11; 
           (2) 88,000 pounds for any vehicle or combination of 
        vehicles with six or more axles while exclusively engaged in 
        hauling livestock on all state trunk highways other than 
        interstate highways, if the vehicle has a permit under section 
        169.86, subdivision 5, paragraph (k); 
           (3) 73,280 pounds for any vehicle or combination of 
        vehicles with five axles or less on all routes, other than state 
        trunk highways and routes that are designated under section 
        169.832, subdivision 11, except that a vehicle needing 
        reasonable access to a terminal or facilities for food, fuel, 
        repairs, and rest, located within three miles of a ten-ton 
        route, may not exceed 80,000 pounds.  "Terminal" means any 
        location where freight either originates, terminates, or is 
        handled in the transportation process, or where commercial motor 
        carriers maintain operating facilities; and 
           (3) (4) 80,000 pounds for any vehicle or combination of 
        vehicles with six or more axles on all routes, other than state 
        trunk highways and routes that are designated under section 
        169.832, subdivision 11.  
           (b) The maximum weights specified in this section for five 
        consecutive axles shall not apply to a four-axle ready-mix 
        concrete truck which was equipped with a fifth axle prior to 
        June 1, 1981.  The maximum gross weight on four or fewer 
        consecutive axles of vehicles excepted by this clause shall not 
        exceed any maximum weight specified for four or fewer 
        consecutive axles in this section. 
           [EFFECTIVE DATE.] The language in paragraph (a), clause 
        (2), is effective August 1, 2006. 
           Sec. 37.  Minnesota Statutes 2004, section 169.85, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DRIVER TO STOP FOR WEIGHING.] (a) The 
        driver of a vehicle that has been lawfully stopped may be 
        required by an officer to submit the vehicle and load to a 
        weighing by means of portable or stationary scales.  
           (b) In addition, the officer may require that the vehicle 
        be driven to the nearest available scales, but only if: 
           (1) the distance to the scales is no further than five 
        miles, or if the distance from the point where the vehicle is 
        stopped to the vehicle's destination is not increased by more 
        than ten miles as a result of proceeding to the nearest 
        available scales; and 
           (2) if the vehicle is a commercial motor vehicle, no more 
        than two other commercial motor vehicles are waiting to be 
        inspected at the scale.  
           (c) Official traffic control devices as authorized by 
        section 169.06 may be used to direct the driver to the nearest 
        scale.  
           (d) When a truck weight enforcement operation is conducted 
        by means of portable or stationary scales and, signs giving 
        notice of the operation are must be posted within the highway 
        right-of-way and adjacent to the roadway within two miles of the 
        operation,.  The driver of a truck or combination of vehicles 
        registered for or weighing in excess of 12,000 pounds shall 
        proceed to the scale site and submit the vehicle to weighing and 
        inspection. 
           Sec. 38.  Minnesota Statutes 2004, section 169.85, 
        subdivision 6, is amended to read: 
           Subd. 6.  [OFFICER DEFINED.] When used in this section, the 
        word "officer" means a peace officer or member of the State 
        Patrol, an employee of the Department of Public Safety described 
        in section 299D.06, or a peace officer or person under the 
        officer's direction and control employed by a local unit of 
        government who is trained in weight enforcement by the 
        Department of Public Safety. 
           Sec. 39.  [169.864] [SPECIAL PAPER PRODUCTS VEHICLE 
        PERMIT.] 
           Subdivision 1.  [SPECIAL PAPER PRODUCTS VEHICLE 
        PERMIT.] The commissioner may issue a permit for a vehicle that 
        meets the following requirements: 
           (1) is a combination of vehicles, including a truck-tractor 
        and a semi-trailer drawing one additional semitrailer, which may 
        be equipped with an auxiliary dolly, and no semitrailer used in 
        the three-vehicle combination has an overall length in excess of 
        28-1/2 feet; 
           (2) has a maximum gross vehicle weight of 108,000 pounds; 
           (3) complies with the axle weight limits in section 169.824 
        or with the federal bridge formula for axle groups not described 
        in that section; 
           (4) complies with the tire weight limits in section 169.823 
        or the tire manufacturers' recommended load, whichever is less; 
           (5) is operated only in this state on Trunk Highway marked 
        2 between Grand Rapids and the port of Duluth; on Trunk Highway 
        marked 169 between Grand Rapids and its junction with Trunk 
        Highway marked 53; and on Trunk Highway marked 53 between 
        Virginia and the port of Duluth; and 
           (6) the seasonal weight increases authorized under section 
        169.826, subdivision 1, do not apply. 
           Subd. 2.  [TWO-UNIT VEHICLE.] The commissioner may issue a 
        permit for a vehicle that meets the following requirements: 
           (1) is a combination of vehicles consisting of a 
        truck-tractor and a single semitrailer that may exceed 48 feet, 
        but not 53 feet, if the distance from the kingpin to the 
        centerline of the rear axle group of the semitrailer does not 
        exceed 43 feet; 
           (2) has a maximum gross vehicle weight of 90,000 pounds; 
           (3) has a maximum gross vehicle weight of 98,000 pounds 
        during the time when seasonal weight increases authorized under 
        section 169.826, subdivision 1, are in effect; 
           (4) complies with the axle weight limits in section 169.824 
        or with the federal bridge formula for axle groups not described 
        in that section; 
           (5) complies with the tire weight limits in section 169.823 
        or the tire manufacturers' recommended load, whichever is less; 
        and 
           (6) is operated only on the highways specified in 
        subdivision 1, clause (5).  
           Subd. 3.  [RESTRICTIONS.] Vehicles issued permits under 
        subdivisions 1 and 2 must comply with the following restrictions:
           (1) the vehicle must be operated in compliance with 
        seasonal load restrictions under section 169.87; 
           (2) the vehicle may not be operated on the interstate 
        highway system; and 
           (3) the vehicle may be operated on streets or highways 
        under the control of local authorities only upon the approval of 
        the local authority; however, vehicles may have reasonable 
        access to terminals and facilities for food, fuel, repairs, and 
        rest and for continuity of route within one mile of the national 
        network as provided by section 169.81, subdivision 3, and by 
        Code of Federal Regulations, title 23, part 658.19. 
           Subd. 4.  [PERMIT FEE.] Vehicle permits issued under 
        subdivision 1, clause (1), must be annual permits.  The fee is 
        $850 for each vehicle and must be deposited in the trunk highway 
        fund.  An amount sufficient to administer the permit program is 
        appropriated from the trunk highway fund to the commissioner for 
        the costs of administering the permit program. 
           [EFFECTIVE DATE.] This section is effective the latter of 
        August 1, 2006, or the date on which the commissioner determines 
        that building permits have been issued for the construction of a 
        new pulp and paper manufacturing facility at Grand Rapids. 
           Sec. 40.  Minnesota Statutes 2004, section 176.136, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [RELATIVE VALUE FEE SCHEDULE.] (a) The liability 
        of an employer for services included in the medical fee schedule 
        is limited to the maximum fee allowed by the schedule in effect 
        on the date of the medical service, or the provider's actual 
        fee, whichever is lower.  The medical fee schedule effective on 
        October 1, 1991, remains in effect until the commissioner adopts 
        a new schedule by permanent rule.  The commissioner shall adopt 
        permanent rules regulating fees allowable for medical, 
        chiropractic, podiatric, surgical, and other health care 
        provider treatment or service, including those provided to 
        hospital outpatients, by implementing a relative value fee 
        schedule to be effective on October 1, 1993.  The commissioner 
        may adopt by reference the relative value fee schedule adopted 
        for the federal Medicare program or a relative value fee 
        schedule adopted by other federal or state agencies.  The 
        relative value fee schedule must contain reasonable 
        classifications including, but not limited to, classifications 
        that differentiate among health care provider disciplines.  The 
        conversion factors for the original relative value fee schedule 
        must reasonably reflect a 15 percent overall reduction from the 
        medical fee schedule most recently in effect.  The reduction 
        need not be applied equally to all treatment or services, but 
        must represent a gross 15 percent reduction. 
           (b) Effective October 1, 2005, the commissioner shall 
        remove all scaling factors from the relative value units and 
        establish four separate conversion factors according to 
        paragraphs (c) and (d) for each of the following parts of 
        Minnesota Rules: 
           (1) Medical/surgical services in Minnesota Rules, part 
        5221.4030, as defined in part 5221.0700, subpart 3, item C, 
        subitem 2; 
           (2) Pathology and laboratory services in Minnesota Rules, 
        part 5221.4040, as defined in part 5221.0700, subpart 3, item C, 
        subitem 3; 
           (3) Physical medicine and rehabilitation services in 
        Minnesota Rules, part 5221.4050, as defined in part 5221.0700, 
        subpart 3, item C, subitem 4; and 
           (4) Chiropractic services in Minnesota Rules, part 
        5221.4060, as defined in part 5221.0700, subpart 3, item C, 
        subitem 5. 
           (c) The four conversion factors established under paragraph 
        (b) shall be calculated so that there is no change in each 
        maximum fee for each service under the current fee schedule, 
        except as provided in paragraphs (d) and (e). 
           (d) By October 1, 2006, the conversion factor for 
        chiropractic services described in paragraph (b), clause (4), 
        shall be increased to equal 72 percent of the conversion factor 
        for medical/surgical services described in paragraph (b), clause 
        (1).  Beginning October 1, 2005, the increase in chiropractic 
        conversion factor shall be phased in over two years by 
        approximately equal percentage point increases. 
           (e) When adjusting the conversion factors in accordance 
        with paragraph (g) on October 1, 2005, and October 1, 2006, the 
        commissioner may adjust by no less than zero, all of the 
        conversion factors as necessary to offset any overall increase 
        in payments under the fee schedule resulting from the increase 
        in the chiropractic conversion factor. 
           (f) The commissioner shall give notice of the relative 
        value units and conversion factors established under paragraphs 
        (b), (c), and (d) according to the procedures in section 14.386, 
        paragraph (a).  The relative value units and conversion factors 
        established under paragraphs (b), (c), and (d) are not subject 
        to expiration under section 14.386, paragraph (b). 
           (g) After permanent rules have been adopted to implement 
        this section, the conversion factors must be adjusted annually 
        on October 1 by no more than the percentage change computed 
        under section 176.645, but without the annual cap provided by 
        that section.  The commissioner shall annually give notice in 
        the State Register of the adjusted conversion factors and may 
        also give annual notice of any additions, deletions, or changes 
        to the relative value units or service codes adopted by the 
        federal Medicare program.  The relative value units may be 
        statistically adjusted in the same manner as for the original 
        workers' compensation relative value fee schedule.  The notices 
        of the adjusted conversion factors and additions, deletions, or 
        changes to the relative value units and service codes is in lieu 
        of the requirements of chapter 14.  The commissioner shall 
        follow the requirements of section 14.386, paragraph (a).  The 
        annual adjustments to the conversion factors and the medical fee 
        schedules adopted under this section, including all previous fee 
        schedules, are not subject to expiration under section 14.386, 
        paragraph (b).  
           Sec. 41.  [181.722] [MISREPRESENTATION OF EMPLOYMENT 
        RELATIONSHIP PROHIBITED.] 
           Subdivision 1.  [PROHIBITION.] No employer shall 
        misrepresent the nature of its employment relationship with its 
        employees to any federal, state, or local government unit; to 
        other employers; or to its employees.  An employer misrepresents 
        the nature of its employment relationship with its employees if 
        it makes any statement regarding the nature of the relationship 
        that the employer knows or has reason to know is untrue and if 
        it fails to report individuals as employees when legally 
        required to do so. 
           Subd. 2.  [AGREEMENTS TO MISCLASSIFY PROHIBITED.] No 
        employer shall require or request any employee to enter into any 
        agreement, or sign any document, that results in 
        misclassification of the employee as an independent contractor 
        or otherwise does not accurately reflect the employment 
        relationship with the employer. 
           Subd. 3.  [DETERMINATION OF EMPLOYMENT RELATIONSHIP.] For 
        purposes of this section, the nature of an employment 
        relationship is determined using the same tests and in the same 
        manner as employee status is determined under the applicable 
        workers' compensation and unemployment insurance program laws 
        and rules. 
           Subd. 4.  [CIVIL REMEDY.] A construction worker, as defined 
        in section 179.254, who is not an independent contractor and has 
        been injured by a violation of this section, may bring a civil 
        action for damages against the violator.  If the construction 
        worker injured is an employee of the violator of this section, 
        the employee's representative, as defined in section 179.01, 
        subdivision 5, may bring a civil action for damages against the 
        violator on behalf of the employee.  The court may award 
        attorney fees, costs, and disbursements to a construction worker 
        recovering under this section.  
           Subd. 5.  [REPORTING OF VIOLATIONS.] Any court finding that 
        a violation of this section has occurred shall transmit a copy 
        of its findings of fact and conclusions of law to the 
        commissioner of labor and industry.  The commissioner of labor 
        and industry shall report the finding to relevant state and 
        federal agencies, including the commissioner of commerce, the 
        commissioner of employment and economic development, the 
        commissioner of revenue, the federal Internal Revenue Service, 
        and the United States Department of Labor. 
           Sec. 42.  Minnesota Statutes 2004, section 183.41, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [ANNUAL PERMIT.] The commissioner shall issue an 
        annual permit to a boat for the purpose of carrying passengers 
        for hire on the inland waters of the state provided the boat 
        satisfies the inspection requirements of this section.  A boat 
        subject to inspection under this chapter shall be registered 
        with the Division of Boiler Inspection and shall be inspected 
        before a permit may be issued. 
           Sec. 43.  Minnesota Statutes 2004, section 183.411, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [INSPECTION FEES.] The commissioner may set fees 
        fee for inspecting traction engines, show boilers, and show 
        engines shall be the hourly rate pursuant to section 
        16A.1285 183.545, subdivision 3a. 
           Sec. 44.  Minnesota Statutes 2004, section 183.411, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LICENSES.] A license to operate steam farm 
        traction engines, portable and stationary show engines and 
        portable and stationary show boilers shall be issued to an 
        applicant who: 
           (a) (1) is 18 years of age or older; 
           (b) (2) has a licensed second class or higher class 
        engineer or steam traction (hobby) engineer sign the affidavit 
        attesting to the applicant's competence in operating said 
        devices; 
           (c) (3) passes a written test for competence in operating 
        said devices; 
           (d) (4) has at least 25 hours of actual operating 
        experience on said devices; and 
           (e) (5) pays the required fee. 
           A license shall be valid for the lifetime of the licensee.  
        A onetime fee set by the commissioner pursuant to section 
        16A.1285 183.545, subdivision 4, shall be charged for the 
        license. 
           Sec. 45.  Minnesota Statutes 2004, section 183.42, is 
        amended to read: 
           183.42 [INSPECTION EACH YEAR AND REGISTRATION.] 
           Subdivision 1.  [INSPECTION.] Every owner, lessee, or other 
        person having charge of boilers, or pressure vessels, or any 
        boat subject to inspection under this chapter shall cause them 
        to be inspected by the Division of Boiler Inspection.  
        Boilers and boats subject to inspection under this chapter must 
        be inspected at least annually and pressure vessels inspected at 
        least every two years except as provided under section 
        183.45.  A person who fails to have the inspection required by 
        this section shall pay to the commissioner a penalty in the 
        amount of the cost of inspection up to a maximum of $1,000.  The 
        commissioner shall assess a $250 penalty per applicable boiler 
        or pressure vessel for failure to have the inspection required 
        by this section and may seal the boiler or pressure vessel for 
        refusal to allow an inspection as required by this section. 
           Subd. 2.  [REGISTRATION.] Every owner, lessee, or other 
        person having charge of boilers or pressure vessels subject to 
        inspection under this chapter shall register said objects with 
        the Division of Boiler Inspection.  The registration shall be 
        renewed annually and is applicable to each object separately.  
        The fee for registration of a boiler or pressure vessel shall be 
        pursuant to section 183.545, subdivision 10.  The Division of 
        Boiler Inspection may issue a billing statement for each boiler 
        and pressure vessel on record with the division, and may 
        determine a monthly schedule of billings to be followed for 
        owners, lessees, or other persons having charge of a boiler or 
        pressure vessel subject to inspection under this chapter. 
           Subd. 3.  [CERTIFICATE OF REGISTRATION.] The Division of 
        Boiler Inspection shall issue a certificate of registration that 
        lists the boilers and pressure vessels at the location, 
        expiration date of the certificate of registration, last 
        inspection date of each boiler and pressure vessel, and maximum 
        allowable working pressure for each boiler and pressure vessel.  
        The commissioner may make an electronic certificate of 
        registration available to be printed by the owner, lessee, or 
        other person having charge of the boiler or pressure vessel. 
           Sec. 46.  Minnesota Statutes 2004, section 183.44, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MASTERS AND PILOTS.] The Division of 
        Boiler Inspection commissioner or the commissioner's designee 
        shall examine all masters and pilots of boats and vessels 
        carrying passengers for hire on the inland waters of the state 
        as to their qualifications and fitness.  If found trustworthy 
        qualified and competent to perform their duties as a master or 
        pilot of a boat carrying passengers for hire, they shall be 
        given issued a certificate license authorizing them to act as 
        such on the inland waters of the state.  The license shall be 
        renewed annually.  Fees for the original issue and renewal of 
        the license authorized under this section shall be pursuant to 
        section 183.545, subdivision 2. 
           Sec. 47.  Minnesota Statutes 2004, section 183.51, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPLICATIONS.] Any person who desires an 
        engineer's license shall make submit a written application, on 
        blanks furnished by the inspector.  The person shall also 
        successfully pass a written examination for such grade of 
        license applied for commissioner or designee, at least 15 days 
        before the requested exam date.  The application is valid for 
        one year from the date the commissioner or designee received the 
        application. 
           Sec. 48.  Minnesota Statutes 2004, section 183.51, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [EXAMINATIONS.] Each applicant for a license 
        must pass an examination approved by the commissioner.  The 
        examinations shall be of sufficient scope to establish the 
        competency of the applicant to operate a boiler of the 
        applicable license class and grade. 
           Sec. 49.  Minnesota Statutes 2004, section 183.545, is 
        amended to read: 
           183.545 [FEES FOR INSPECTION.] 
           Subdivision 1.  [FEE AMOUNT; VESSELS OPERATED ON INLAND 
        WATERS.] The fees for the inspection of the hull, boiler, 
        machinery, and equipments of vessels are to be set by the 
        commissioner pursuant to section 16A.1285, for vessels of 50 
        tons burden or over and vessels of less than 50 tons 
        burden. operated on inland waters and that carry passengers for 
        hire are as follows: 
           (1) annual operating permit and safety inspections shall be 
        $200; and 
           (2) other inspections, including dry-dock inspections, boat 
        stability tests, and plan reviews, are billed at the hourly rate 
        set in subdivision 3a. 
           Subd. 2.  [FEE AMOUNTS; MASTERS AND PILOTS.] The 
        commissioner shall, pursuant to section 16A.1285, set 
        the license and application fee for an examination of an 
        applicant for a master's or pilot's license is $50, for an or 
        $20 if the applicant possesses a valid, unlimited, current 
        United States Coast Guard master's license.  The annual renewal 
        of a master's or a pilot's license, and for an is $20.  The 
        annual renewal if paid later than ten 30 days after 
        expiration is $35.  The fee for replacement of a current, valid 
        license is $20. 
           Subd. 3.  [BOILER AND PRESSURE VESSEL INSPECTION FEES.] The 
        fees for the annual inspection of boilers and biennial 
        inspection of pressure vessels are to be set by the commissioner 
        pursuant to section 16A.1285, for as follows: 
           (a) (1) boiler inaccessible for internal inspection, $55; 
           (b) (2) boiler accessible for internal inspection, $55; 
           (c) (3) boiler internal inspection over 2,000 square feet 
        heating surface shall be billed at the hourly rate set in 
        subdivision 3a; 
           (d) boiler internal inspection over 4,000 square feet 
        heating surface; 
           (e) boiler internal inspection over 10,000 square feet 
        heating surface; 
           (f) (4) boiler accessible for internal inspection requiring 
        one-half day or more of inspection time shall be billed at the 
        established shop inspection fee hourly rate set in subdivision 
        3a; 
           (g) (5) pressure vessel for internal inspection via 
        manhole, $35; and 
           (h) (6) pressure vessel inaccessible for internal 
        inspection, $35.  
           An additional fee based on the scale of fees applicable to 
        an inspection shall be charged when it is necessary to make a 
        special trip for a hydrostatic test of a boiler or pressure 
        vessel.  
           Subd. 3a.  [HOURLY RATE.] The commissioner shall, pursuant 
        to section 16A.1285, set shop inspection fees hourly rate for an 
        inspection not set elsewhere in this chapter is $80 per hour.  
        Inspection time includes all time related to the shop 
        inspection.  Travel time, billed at the hourly rate, and travel 
        expenses shall be billed for shop inspections, triennial audits, 
        boat stability tests, hydrostatic tests of a boiler or pressure 
        vessel, or any other inspection or consultation requiring a 
        special trip. 
           Subd. 4.  [APPLICANTS BOILER ENGINEER LICENSE FEES.] The 
        commissioner shall, pursuant to section 16A.1285, set the fee 
        for an examination of an applicant For the following licenses, 
        the nonrefundable license and application fee is: 
           (a) (1) chief engineer's license, $50; 
           (b) (2) first class engineer's license, $50; 
           (c) (3) second class engineer's license, $50; 
           (d) (4) special engineer's license, $20; and 
           (e) (5) traction or hobby boiler engineer's license; and, 
        $50. 
           (f) pilot's license. 
           If an applicant, after an examination, is entitled to 
        receive a license, it shall be issued without the payment of any 
        additional charge.  Any license so issued expires one year after 
        the date of its issuance.  An engineer's license may be renewed 
        upon application therefor and the payment of an annual renewal 
        fee as set by the commissioner pursuant to section 16A.1285 of 
        $20.  The annual renewal, if paid later than 30 days after 
        expiration, is $35.  The fee for replacement of a current, valid 
        license is $20.  
           Subd. 6.  [NATIONAL BOARD INSPECTORS.] The fee for an 
        examination of an applicant for a National Board of Boiler and 
        Pressure Vessels Inspectors commission shall be set by the 
        commissioner pursuant to section 16A.1285 is $100.  
           Subd. 7.  [NUCLEAR ENDORSEMENT.] The fee for each 
        examination of an applicant for a National Board of Boiler and 
        Pressure Vessels commissioned inspectors nuclear endorsement 
        shall be set by the commissioner pursuant to section 16A.1285 is 
        $100. 
           Subd. 8.  [CERTIFICATE OF COMPETENCY.] The fee for issuance 
        of the original state of Minnesota certificate of competency for 
        inspectors shall be set by the commissioner pursuant to section 
        16A.1285 is $50.  This fee is waived for inspectors who paid the 
        examination fee.  The fee for an annual renewal of the state of 
        Minnesota certificate of competency shall be set by the 
        commissioner pursuant to section 16A.1285 is $35, and is due 
        January 1 of each year.  The fee for replacement of a current, 
        valid license is $35. 
           Subd. 9.  [DEPOSIT OF FEES.] Fees received under this 
        section and section 183.57 must be deposited in the state 
        treasury and credited to the general fund. 
           Subd. 10.  [BOILER AND PRESSURE VESSEL REGISTRATION 
        FEE.] The annual registration fee for boilers and pressure 
        vessels in use and required to be inspected per section 183.42 
        shall be $10 per boiler and pressure vessel. 
           Sec. 50.  Minnesota Statutes 2004, section 183.57, is 
        amended to read: 
           183.57 [REPORT OF INSURER; EXEMPTION FROM INSPECTION.] 
           Subdivision 1.  [REPORT REQUIRED.] Any insurance company 
        insuring boilers and pressure vessels in this state shall make a 
        written file a report thereof showing the date of inspection, 
        the name of the person making the inspection, the condition of 
        the boiler or pressure vessel as disclosed by the inspection, 
        whether the same is boiler was operated by a properly licensed 
        engineer, and whether a policy of insurance has been issued by 
        the company with reference to the boiler or pressure vessel, and 
        other information as directed by the chief boiler inspector.  
        Within 15 21 days after the inspection, the insurance company 
        shall mail a copy of file the report to with the chief boiler 
        inspector and or designee.  The insurer shall provide a copy of 
        the report to the person, firm, or corporation owning or 
        operating the inspected boiler or pressure vessel inspected.  
        Such report shall be made annually for boilers and biennially 
        for pressure vessels. 
           Subd. 2.  [EXEMPTION.] Every boiler or pressure vessel as 
        to which any insurance company authorized to do business in this 
        state has issued a policy of insurance, after the inspection 
        thereof, is exempt from inspection by the department made under 
        sections 183.375 to 183.62, while the same continues to be 
        insured and provided it continues to be inspected in accordance 
        with the inspection schedule set forth in sections 183.42 and 
        183.45, and the person, firm, or corporation owning or operating 
        the same has an unexpired certificate of exemption from 
        inspection, issued by the chief boiler 
        inspector registration.  The fee set by the commissioner 
        pursuant to section 16A.1285, on the first object inspected and 
        on each object thereafter shall apply to each exempt object.  A 
        certificate of exemption expires one year from date of issue.  
        The certificate of exemption shall be posted in a conspicuous 
        place near the boiler or pressure vessel or in the plant office 
        or boiler room described therein and to which it relates.  Every 
        insurance company shall give written notice to the chief boiler 
        inspector of the cancellation or expiration of every policy of 
        insurance issued by it with reference to policies in this state, 
        and the cause or reason for the cancellation or expiration.  
        These notices of cancellation or expiration shall show the date 
        of the policy and the date when the cancellation has or will 
        become effective. 
           Subd. 4.  [CERTIFICATE OF EXEMPTION.] The Division of 
        Boiler Inspection may issue a billing and exemption certificate 
        for each boiler and pressure vessel which the division records 
        indicate shall be or has been inspected by an insurance company 
        which is providing coverage for the boilers and pressure 
        vessels.  The division may determine the monthly schedule of the 
        billings to be followed for each business insured.  
           Subd. 5.  [NOTICE OF INSURANCE COVERAGE.] The insurer shall 
        notify the commissioner or designee in writing of its policy to 
        insure and inspect boilers and pressure vessels at a location 
        within 30 days of receipt of notification from the insured that 
        a boiler or pressure vessel is present at an insured location.  
        The insurer must also provide a duplicate of the notification to 
        the insured. 
           Subd. 6.  [NOTICE OF DISCONTINUED COVERAGE.] The insurer 
        shall notify the commissioner or designee in writing, within 30 
        days of the effective date, of the discontinuation of insurance 
        coverage of the boilers and pressure vessels at a location and 
        the cause or reason for the discontinuation if the insurer has 
        received notice from the insured that a boiler or pressure 
        vessel is present at an insured location, as provided under 
        subdivision 5.  This notice shall show the effective date when 
        the discontinued policy takes effect. 
           Subd. 7.  [PENALTIES.] The commissioner shall assess upon 
        the insurer a $50 penalty, per applicable boiler and pressure 
        vessel, for failing to submit an inspection report or notify the 
        commissioner of insurance coverage or discontinuation of 
        insurance coverage as set forth in this section.  The 
        commissioner shall assess upon the insurer a penalty of $100, 
        per applicable boiler and pressure vessel, for failing to 
        conduct the required in-service inspection within 120 days after 
        the inspection was due in accordance with section 183.42.  The 
        penalties in this subdivision may only be assessed for notice, 
        reports, and inspections required during the period that the 
        insurance coverage was in effect and for which the insurer has 
        received notice from the insured that a boiler or pressure 
        vessel is present at an insured location, as provided under 
        subdivision 5. 
           Sec. 51.  Minnesota Statutes 2004, section 216C.41, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INCENTIVE PAYMENT; APPROPRIATION.] (a) Incentive 
        payments must be made according to this section to (1) a 
        qualified on-farm biogas recovery facility, (2) the owner or 
        operator of a qualified hydropower facility or qualified wind 
        energy conversion facility for electric energy generated and 
        sold by the facility, (3) a publicly owned hydropower facility 
        for electric energy that is generated by the facility and used 
        by the owner of the facility outside the facility, or (4) the 
        owner of a publicly owned dam that is in need of substantial 
        repair, for electric energy that is generated by a hydropower 
        facility at the dam and the annual incentive payments will be 
        used to fund the structural repairs and replacement of 
        structural components of the dam, or to retire debt incurred to 
        fund those repairs. 
           (b) Payment may only be made upon receipt by the 
        commissioner of finance commerce of an incentive payment 
        application that establishes that the applicant is eligible to 
        receive an incentive payment and that satisfies other 
        requirements the commissioner deems necessary.  The application 
        must be in a form and submitted at a time the commissioner 
        establishes.  
           (c) There is annually appropriated from the general fund 
        renewable development account under section 116C.779 to the 
        commissioner of commerce sums sufficient to make the payments 
        required under this section, other than in addition to the 
        amounts funded by the renewable development account as specified 
        in subdivision 5a. 
           Sec. 52.  Minnesota Statutes 2004, section 216C.41, 
        subdivision 5, is amended to read: 
           Subd. 5.  [AMOUNT OF PAYMENT; WIND FACILITIES LIMIT.] (a) 
        An incentive payment is based on the number of kilowatt hours of 
        electricity generated. The amount of the payment is: 
           (1) for a facility described under subdivision 2, paragraph 
        (a), clause (4), 1.0 cent per kilowatt hour; and 
           (2) for all other facilities, 1.5 cents per kilowatt hour.  
        For electricity generated by qualified wind energy conversion 
        facilities, the incentive payment under this section is limited 
        to no more than 100 200 megawatts of nameplate capacity.  
           (b) For wind energy conversion systems installed and 
        contracted for after January 1, 2002, the total size of a wind 
        energy conversion system under this section must be determined 
        according to this paragraph.  Unless the systems are 
        interconnected with different distribution systems, the 
        nameplate capacity of one wind energy conversion system must be 
        combined with the nameplate capacity of any other wind energy 
        conversion system that is: 
           (1) located within five miles of the wind energy conversion 
        system; 
           (2) constructed within the same calendar year as the wind 
        energy conversion system; and 
           (3) under common ownership. 
        In the case of a dispute, the commissioner of commerce shall 
        determine the total size of the system, and shall draw all 
        reasonable inferences in favor of combining the systems. 
           (c) In making a determination under paragraph (b), the 
        commissioner of commerce may determine that two wind energy 
        conversion systems are under common ownership when the 
        underlying ownership structure contains similar persons or 
        entities, even if the ownership shares differ between the two 
        systems.  Wind energy conversion systems are not under common 
        ownership solely because the same person or entity provided 
        equity financing for the systems. 
           Sec. 53.  Minnesota Statutes 2004, section 216C.41, 
        subdivision 5a, is amended to read: 
           Subd. 5a.  [RENEWABLE DEVELOPMENT ACCOUNT.] The Department 
        of Commerce shall authorize payment of the renewable energy 
        production incentive to wind energy conversion systems for 100 
        200 megawatts of nameplate capacity in addition to the capacity 
        authorized under subdivision 5 and to on-farm biogas recovery 
        facilities.  Payment of the incentive shall be made from the 
        renewable energy development account as provided under section 
        116C.779, subdivision 2. 
           Sec. 54.  Minnesota Statutes 2004, section 237.11, is 
        amended to read: 
           237.11 [INSPECTING RECORDS AND PROPERTY; REPORTS REQUIRED.] 
           Every telephone company subject to the provisions of this 
        chapter, wherever organized, shall keep an office in this state, 
        and make such reports to the department as it shall from time to 
        time require.  All books, records, and files, whether they 
        relate to competitive or noncompetitive services, and all of its 
        property shall be at all times subject to inspection by the 
        commission and the department.  It shall close its accounts and 
        take therefrom a balance sheet on December 31 of each year, and 
        on or before May 1 following, such balance sheet, together with 
        such other information as the department shall require, verified 
        by an officer of the telephone company, shall be filed with the 
        commission and the department, except that a local exchange 
        carrier or a competitive local exchange carrier, as defined in 
        Minnesota Rules, chapter 7811, is only required to file an 
        annual report that includes the company's name, contact person, 
        annual revenue, and status of its 911 update plan. 
           In the event that any telephone company shall fail to file 
        its annual report, as provided by this section, the department 
        is authorized to make such an examination of the books, records, 
        and vouchers of the company as is necessary to procure the 
        necessary data for the annual report and cause the same to be 
        prepared.  The expense of procuring this data and preparing this 
        report shall be paid by the telephone company failing to report, 
        and the amount paid shall be credited by the commissioner of 
        finance to funds appropriated for the expense of the department. 
           The department is authorized to force collection of such 
        sum by an action at law in the name of the department.  
           Sec. 55.  Minnesota Statutes 2004, section 237.295, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PAYMENT FOR INVESTIGATION FILING FEE FOR 
        NEW AUTHORITY.] (a) Whenever the department or commission, in a 
        proceeding upon its own motion, on complaint, or upon an 
        application to it, considers it necessary, in order to carry out 
        the duties imposed on it, to investigate the books, accounts, 
        practices, and activities of any company, parties to the 
        proceeding shall pay the expenses reasonably attributable to the 
        proceeding.  The department and commission shall ascertain the 
        expenses, and the department shall render a bill for those 
        expenses to the parties, at the conclusion of the proceeding.  
        The department is authorized to submit billings to parties at 
        intervals selected by the department during the course of a 
        proceeding.  
           (b) The allocation of costs may be adjusted for cause by 
        the commission during the course of the proceeding, or upon the 
        closing of the docket and issuance of an order.  In addition to 
        the rights granted in subdivision 3, parties to a proceeding may 
        object to the allocation at any time during the proceeding.  
        Withdrawal by a party to a proceeding does not absolve the party 
        from paying allocated costs as determined by the commission.  
        The commission may decide that a party should not pay any 
        allocated costs of the proceeding.  
           (c) The bill constitutes notice of the assessment and a 
        demand for payment.  The amount of the bills assessed by the 
        department under this subdivision must be paid by the parties 
        into the state treasury within 30 days from the date of 
        assessment.  The total amount, in a calendar year, for which a 
        telephone company may become liable, by reason of costs incurred 
        by the department and commission within that calendar year, may 
        not exceed two-fifths of one percent of the gross jurisdictional 
        operating revenue of the telephone company in the last preceding 
        calendar year.  Direct charges may be assessed without regard to 
        this limitation until the gross jurisdictional operating revenue 
        of the telephone company for the preceding calendar year has 
        been reported for the first time.  Where, under this 
        subdivision, costs are incurred within a calendar year that are 
        in excess of two-fifths of one percent of the gross 
        jurisdictional operating revenues, the excess costs are not 
        chargeable as part of the remainder under subdivision 2. 
           (d) Except as otherwise provided in paragraph (e), for 
        purposes of assessing the cost of a proceeding to a party, 
        "party" means any entity or group subject to the laws and rules 
        of this state, however organized, whether public or private, 
        whether domestic or foreign, whether for profit or nonprofit, 
        and whether natural, corporate, or political, such as a business 
        or commercial enterprise organized as any type or combination of 
        corporation, limited liability company, partnership, limited 
        liability partnership, proprietorship, association, cooperative, 
        joint venture, carrier, or utility, and any successor or 
        assignee of any of them; a social or charitable organization; 
        and any type or combination of political subdivision, which 
        includes the executive, judicial, or legislative branch of the 
        state, a local government unit, an agency of the state or a 
        local government unit, or a combination of any of them.  
           (e) For assessment and billing purposes, "party" does not 
        include the Department of Commerce or the Residential Utilities 
        Division of the Office of Attorney General; any entity or group 
        instituted primarily for the purpose of mutual help and not 
        conducted for profit; intervenors awarded compensation under 
        section 237.075, subdivision 10; or any individual or group or 
        counsel for the individual or group representing the interests 
        of end users or classes of end users of services provided by 
        telephone companies or telecommunications carriers, as 
        determined by the commission An application for a new authority 
        must be accompanied by a payment not to exceed $2,000 as 
        determined by the Public Utilities Commission.  This fee will be 
        reviewed annually and adjusted accordingly.  
           Sec. 56.  Minnesota Statutes 2004, section 237.295, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ASSESSMENT OF COSTS.] The department and 
        commission shall quarterly, at least 30 days before the start of 
        each quarter, estimate the total of their expenditures in the 
        performance of their duties relating to telephone companies, 
        other than amounts chargeable to telephone companies under 
        subdivision 1, 5, or 6.  The remainder must be assessed by the 
        department to the telephone companies operating in this state in 
        proportion to their respective gross jurisdictional operating 
        revenues during the last calendar year.  The assessment must be 
        paid into the state treasury within 30 days after the bill has 
        been mailed to the telephone companies.  The bill constitutes 
        notice of the assessment and demand of payment.  The total 
        amount that may be assessed to the telephone companies under 
        this subdivision may not exceed one-eighth three-eighths of one 
        percent of the total gross jurisdictional operating revenues 
        during the calendar year.  The assessment for the third quarter 
        of each fiscal year must be adjusted to compensate for the 
        amount by which actual expenditures by the commission and 
        department for the preceding fiscal year were more or less than 
        the estimated expenditures previously assessed.  A telephone 
        company with gross jurisdictional operating revenues of less 
        than $5,000 is exempt from assessments under this subdivision. 
           Sec. 57.  [237.491] [COMBINED PER NUMBER FEE.] 
           Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
        subdivision apply to this section. 
           (b) "911 emergency and public safety communications program"
        means the program governed by chapter 403. 
           (c) "Minnesota telephone number" means a ten-digit 
        telephone number being used to connect to the public switched 
        telephone network and starting with area code 218, 320, 507, 
        612, 651, 763, or 952, or any subsequent area code assigned to 
        this state. 
           (d) "Service provider" means a provider doing business in 
        this state who provides real time, two-way voice service with a 
        Minnesota telephone number. 
           (e) "Telecommunications access Minnesota program" means the 
        program governed by sections 237.50 to 237.55. 
           (f) "Telephone assistance program" means the program 
        governed by sections 237.69 to 237.711. 
           Subd. 2.  [PER NUMBER FEE.] (a) By January 15, 2006, the 
        commissioner of commerce shall report to the legislature and to 
        the senate Committee on Jobs, Energy, and Community Development 
        and the house Committee on Regulated Industries, recommendations 
        for the amount of and method for assessing a fee that would 
        apply to each service provider based upon the number of 
        Minnesota telephone numbers in use by current customers of the 
        service provider.  The fee would be set at a level calculated to 
        generate only the amount of revenue necessary to fund: 
           (1) the telephone assistance program and the 
        telecommunications access Minnesota program at the levels 
        established by the commission under sections 237.52, subdivision 
        2, and 237.70; and 
           (2) the 911 emergency and public safety communications 
        program at the levels appropriated by law to the commissioner of 
        public safety and the commissioner of finance for purposes of 
        sections 403.11, 403.113, 403.27, 403.30, and 403.31 for each 
        fiscal year. 
           (b) The recommendations must include any changes to 
        Minnesota Statutes necessary to establish the procedures whereby 
        each service provider, to the extent allowed under federal law, 
        would collect and remit the fee proceeds to the commissioner of 
        revenue.  The commissioner of revenue would allocate the fee 
        proceeds to the three funding areas in paragraph (a) and credit 
        the allocations to the appropriate accounts. 
           (c) The recommendations must be designed to allow the 
        combined per telephone number fee to be collected beginning July 
        1, 2006.  The per access line fee used to collect revenues to 
        support the TAP, TAM, and 911 programs remains in effect until 
        the statutory changes necessary to implement the per telephone 
        number fee have been enacted into law. 
           (d) As part of the process of developing the 
        recommendations and preparing the report to the legislature 
        required under paragraph (a), the commissioner of commerce must, 
        at a minimum, consult regularly with the Departments of Public 
        Safety, Finance, and Administration, the Public Utilities 
        Commission, service providers, the chairs and ranking minority 
        members of the senate and house committees, subcommittees, and 
        divisions having jurisdiction over telecommunications and public 
        safety, and other affected parties. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 58.  Minnesota Statutes 2004, section 237.701, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FUND CREATED; AUTHORIZED EXPENDITURES.] 
        The telephone assistance fund is created as a separate account 
        in the state treasury to consist of amounts received by the 
        commissioner of public safety representing the surcharge 
        authorized by section 237.70, subdivision 6, and amounts earned 
        on the fund assets.  Money in the fund may be used only for: 
           (1) reimbursement to local service providers for expenses 
        and credits allowed in section 237.70, subdivision 7, paragraph 
        (d), clause (5); 
           (2) reimbursement of the reasonable administrative expenses 
        of the commission not to exceed $25,000 annually, a portion of 
        which may be used for periodic promotional activities, 
        including, but not limited to, radio or newspaper 
        advertisements, to inform eligible households of the 
        availability of the telephone assistance program; and 
           (3) reimbursement of the statewide indirect cost of the 
        commission. 
           Sec. 59.  Minnesota Statutes 2004, section 239.011, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DUTIES AND POWERS.] To carry out the 
        responsibilities in section 239.01 and subdivision 1, the 
        director: 
           (1) shall take charge of, keep, and maintain in good order 
        the standard of weights and measures of the state and keep a 
        seal so formed as to impress, when appropriate, the letters 
        "MINN" and the date of sealing upon the weights and measures 
        that are sealed; 
           (2) has general supervision of the weights, measures, and 
        weighing and measuring devices offered for sale, sold, or in use 
        in the state; 
           (3) shall maintain traceability of the state standards to 
        the national standards of the National Institute of Standards 
        and Technology; 
           (4) shall enforce this chapter; 
           (5) shall grant variances from department rules, within the 
        limits set by rule, when appropriate to maintain good commercial 
        practices or when enforcement of the rules would cause undue 
        hardship; 
           (6) shall conduct investigations to ensure compliance with 
        this chapter; 
           (7) may delegate to division personnel the 
        responsibilities, duties, and powers contained in this section; 
           (8) shall test annually, and approve when found to be 
        correct, the standards of weights and measures used by the 
        division, by a town, statutory or home rule charter city, or 
        county within the state, or by a person using standards to 
        repair, adjust, or calibrate commercial weights and measures; 
           (9) shall inspect and test weights and measures kept, 
        offered, or exposed for sale; 
           (10) shall inspect and test, to ascertain if they are 
        correct, weights and measures commercially used to: 
           (i) determine the weight, measure, or count of commodities 
        or things sold, offered, or exposed for sale, on the basis of 
        weight, measure, or count; and 
           (ii) compute the basic charge or payment for services 
        rendered on the basis of weight, measure, or count; 
           (11) shall approve for use and mark weights and measures 
        that are found to be correct; 
           (12) shall reject, and mark as rejected, weights and 
        measures that are found to be incorrect and may seize them if 
        those weights and measures: 
           (i) are not corrected within the time specified by the 
        director; 
           (ii) are used or disposed of in a manner not specifically 
        authorized by the director; or 
           (iii) are found to be both incorrect and not capable of 
        being made correct, in which case the director shall condemn 
        those weights and measures; 
           (13) shall weigh, measure, or inspect packaged commodities 
        kept, offered, or exposed for sale, sold, or in the process of 
        delivery, to determine whether they contain the amount 
        represented and whether they are kept, offered, or exposed for 
        sale in accordance with this chapter and department rules.  In 
        carrying out this section, the director must employ recognized 
        sampling procedures, such as those contained in National 
        Institute of Standards and Technology Handbook 133, "Checking 
        the Net Contents of Packaged Goods"; 
           (14) shall prescribe the appropriate term or unit of weight 
        or measure to be used for a specific commodity when an existing 
        term or declaration of quantity does not facilitate value 
        comparisons by consumers, or creates an opportunity for consumer 
        confusion; 
           (15) shall allow reasonable variations from the stated 
        quantity of contents, including variations caused by loss or 
        gain of moisture during the course of good distribution practice 
        or by unavoidable deviations in good manufacturing practice, 
        only after the commodity has entered commerce within the state; 
           (16) shall inspect and test petroleum products in 
        accordance with this chapter and chapter 296A; 
           (17) shall distribute and post notices for used motor oil 
        and used motor oil filters and lead acid battery recycling in 
        accordance with sections 239.54, 325E.11, and 325E.115; 
           (18) shall collect inspection fees in accordance with 
        sections 239.10 and 239.101; and 
           (19) shall provide metrological services and support to 
        businesses and individuals in the United States who wish to 
        market products and services in the member nations of the 
        European Economic Community, and other nations outside of the 
        United States by:  
           (i) meeting, to the extent practicable, the measurement 
        quality assurance standards described in the International 
        Standards Organization ISO 9000, Guide 25 17025; 
           (ii) maintaining, to the extent practicable, certification 
        of the metrology laboratory by a governing body appointed by the 
        European Economic Community an internationally accepted 
        accrediting body such as the National Voluntary Laboratory 
        Accreditation Program (NVLAP); and 
           (iii) providing calibration and consultation services to 
        metrology laboratories in government and private industry in the 
        United States. 
           Sec. 60.  Minnesota Statutes 2004, section 239.05, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [AUTOMOTIVE FUEL.] For the purpose of enforcing 
        the gasoline octane requirements in section 239.792, "automotive 
        fuel" has the meaning given it in Code of Federal Regulations, 
        title 16, section 306.0. 
           Sec. 61.  Minnesota Statutes 2004, section 239.05, 
        subdivision 10b, is amended to read: 
           Subd. 10b.  [OXYGENATE ETHANOL BLENDER.] "Oxygenate Ethanol 
        blender" means a person who has registered with the division to 
        blend and distribute, transport, sell, or offer blends and 
        distributes, transports, sells, or offers to sell gasoline 
        containing a minimum of 2.0 percent, and an average of 2.7 ten 
        percent oxygen ethanol by weight volume. 
           Sec. 62.  Minnesota Statutes 2004, section 239.09, is 
        amended to read: 
           239.09 [SPECIAL POLICE POWERS.] 
           When necessary to enforce this chapter or rules adopted 
        under the authority granted by section 239.06, the director is: 
           (1) authorized and empowered to arrest, without formal 
        warrant, any violator of sections 325E.11 and 325E.115 or of the 
        statute in relation to weights and measures; 
           (2) empowered to seize for use as evidence and without 
        formal warrant, any false weight, measure, weighing or measuring 
        device, package, or commodity found to be used, retained, or 
        offered or exposed for sale or sold in violation of law; 
           (3) during normal business hours, authorized to enter 
        commercial premises; 
           (4) if the premises are not open to the public, authorized 
        to enter commercial premises only after presenting credentials 
        and obtaining consent or after obtaining a search warrant; 
           (5) empowered to issue stop-use, hold, and removal orders 
        with respect to weights and measures commercially used, and 
        packaged commodities or bulk commodities kept, offered, or 
        exposed for sale, that do not comply with the weights and 
        measures laws; and 
           (6) empowered, upon reasonable suspicion of a violation of 
        the weights and measures laws, to stop a commercial vehicle and, 
        after presentation of credentials, inspect the contents of the 
        vehicle, require that the person in charge of the vehicle 
        produce documents concerning the contents, and require the 
        person to proceed with the vehicle to some specified place for 
        inspection; and 
           (7) empowered, after written warning, to issue citations of 
        not less than $100 and not more than $500 to a person who 
        violates any provision of this chapter, any provision of the 
        rules adopted under the authority contained in this chapter, or 
        any provision of statutes enforced by the Division of Weights 
        and Measures. 
           Sec. 63.  Minnesota Statutes 2004, section 239.101, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PETROLEUM INSPECTION FEE.] (a) An inspection fee 
        is imposed (1) on petroleum products when received by the first 
        licensed distributor, and (2) on petroleum products received and 
        held for sale or use by any person when the petroleum products 
        have not previously been received by a licensed distributor.  
        The petroleum inspection fee is $1 for every 1,000 gallons 
        received.  The commissioner of revenue shall collect the fee.  
        The revenue from 81 cents of the fee must first be applied to 
        cover the amounts appropriated.  Fifteen cents of the inspection 
        fee must be deposited in an account in the special revenue fund 
        and is appropriated to the commissioner of commerce for the cost 
        of petroleum product quality inspection expenses and for the 
        inspection and testing of petroleum product-measuring 
        equipment operations of the Division of Weights and Measures, 
        petroleum supply monitoring, and the oil burner retrofit 
        program.  The remainder of the fee must be deposited in the 
        general fund. 
           (b) The commissioner of revenue shall credit a person for 
        inspection fees previously paid in error or for any material 
        exported or sold for export from the state upon filing of a 
        report as prescribed by the commissioner of revenue. 
           (c) The commissioner of revenue may collect the inspection 
        fee along with any taxes due under chapter 296A. 
           Sec. 64.  Minnesota Statutes 2004, section 239.75, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [INSPECTION TO BE MADE.] The director shall:
           (1) take samples, free of charge, of petroleum products 
        wherever processed, blended, held, stored, imported, 
        transferred, offered for sale or use, or sold in Minnesota, 
        limiting each sample to: 
           (i) two-tenths of one one-half gallon, except when an 
        octane test is planned; or 
           (ii) seven-tenths of one gallon for an octane test; 
           (2) inspect and test petroleum product samples according to 
        the methods of ASTM or other valid test methods adopted by rule, 
        to determine whether the products comply with the specifications 
        in section 239.761; 
           (3) inspect petroleum product storage tanks to ensure that 
        the products are free from water and impurities; 
           (4) inspect and test samples submitted to the department by 
        a licensed distributor, making the test results available to the 
        distributor; 
           (5) inspect the labeling, price posting, and price 
        advertising of petroleum product dispensers and advertising 
        signs at businesses or locations where petroleum products are 
        sold, offered for sale or use, or dispensed into motor vehicles; 
           (6) maintain records of all inspections and tests according 
        to the records retention policies of the Department of 
        Administration; 
           (7) delegate to division personnel, at the director's 
        discretion, any or all of the responsibilities, duties, and 
        powers in sections 239.75 to 239.80; 
           (8) publish octane test data and information to assist 
        persons who use, produce and, distribute, or sell gasoline and 
        gasoline-oxygenate blends petroleum-based heating and engine 
        fuels; 
           (9) register gasoline-oxygenate blenders according to the 
        requirements of the EPA; 
           (10) audit the records of any person responsible for the 
        product to determine compliance with sections 239.75 to 239.792; 
           (11) (10) after consulting with the commissioner of the 
        Pollution Control Agency, grant a temporary exemption from the 
        oxygenated gasoline gasoline-ethanol blending requirements in 
        section 239.791 if the supply of oxygenate ethanol is 
        insufficient to produce gasoline-oxygenate gasoline-ethanol 
        blends during an EPA-designated carbon monoxide control period; 
        and 
           (12) (11) adopt, as an enforcement policy for the division, 
        reasonable margins of uncertainty for the tests used to 
        determine compliance with the specifications in section 239.761, 
        the oxygen percentages in section 239.791, and the octane 
        requirements in section 239.792 and apply the margins of 
        uncertainty to only tests performed by the division, not by 
        adding the margins to uncertainties in tests performed by any 
        person responsible for the product. 
           Sec. 65.  Minnesota Statutes 2004, section 239.75, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PRODUCT QUALITY, RESPONSIBILITY.] After a 
        gasoline product petroleum-based engine fuel is purchased, 
        transferred, or otherwise removed from a refinery or terminal, 
        the person responsible for the product shall: 
           (1) keep the product free from contamination with water and 
        impurities; 
           (2) not blend the product with dissimilar petroleum 
        products, for example, gasoline must not be blended with diesel 
        fuel; 
           (3) not blend the product with any contaminant, dye, 
        chemical, or additive, except: 
           (i) agriculturally derived, denatured ethanol that complies 
        with the specifications in this chapter; 
           (ii) an antiknock additive, or an additive designed to 
        replace tetra-ethyl lead, that is registered by the EPA; or 
           (iii) a dye to distinguish heating fuel from low sulfur 
        diesel fuel; or 
           (iv) biodiesel fuel that complies with the specifications 
        in this chapter; and 
           (4) maintain a record of the name or chemical composition 
        of the additive, with the product shipping manifest or bill of 
        lading for one year after the date of the manifest or bill. 
           Sec. 66.  Minnesota Statutes 2004, section 239.761, is 
        amended to read: 
           239.761 [PETROLEUM PRODUCT SPECIFICATIONS.] 
           Subdivision 1.  [APPLICABILITY.] A person responsible for 
        the product must meet the specifications in this section.  The 
        specifications apply to petroleum products processed, held, 
        stored, imported, transferred, distributed, offered for 
        distribution, offered for sale or use, or sold in Minnesota. 
           Subd. 2.  [COORDINATION WITH DEPARTMENTS OF REVENUE AND 
        AGRICULTURE.] The petroleum product specifications in this 
        section are intended to match the definitions and specifications 
        in sections 41A.09 and 296A.01.  Petroleum products named in 
        this section are defined in section 296A.01. 
           Subd. 3.  [GASOLINE.] (a) Gasoline that is not blended with 
        ethanol must not be contaminated with water or other impurities 
        and must comply with ASTM specification D4814-01 D4814-04a.  
        Gasoline that is not blended with ethanol must also comply with 
        the volatility requirements in Code of Federal Regulations, 
        title 40, part 80.  
           (b) After gasoline is sold, transferred, or otherwise 
        removed from a refinery or terminal, a person responsible for 
        the product: 
           (1) may blend the gasoline with agriculturally derived 
        ethanol as provided in subdivision 4; 
           (2) shall not blend the gasoline with any oxygenate other 
        than denatured, agriculturally derived ethanol; 
           (3) shall not blend the gasoline with other petroleum 
        products that are not gasoline or denatured, agriculturally 
        derived ethanol; 
           (4) shall not blend the gasoline with products commonly and 
        commercially known as casinghead gasoline, absorption gasoline, 
        condensation gasoline, drip gasoline, or natural gasoline; and 
           (5) may blend the gasoline with a detergent additive, an 
        antiknock additive, or an additive designed to replace 
        tetra-ethyl lead, that is registered by the EPA. 
           Subd. 4.  [GASOLINE BLENDED WITH ETHANOL.] (a) Gasoline may 
        be blended with up to ten percent, by volume, agriculturally 
        derived, denatured ethanol that complies with the requirements 
        of subdivision 5.  
           (b) A gasoline-ethanol blend must: 
           (1) comply with the volatility requirements in Code of 
        Federal Regulations, title 40, part 80; 
           (2) comply with ASTM specification D4814-01 D4814-04a, or 
        the gasoline base stock from which a gasoline-ethanol blend was 
        produced must comply with ASTM specification D4814-01 D4814-04a; 
        and 
           (3) not be blended with casinghead gasoline, absorption 
        gasoline, condensation gasoline, drip gasoline, or natural 
        gasoline after the gasoline-ethanol blend has been sold, 
        transferred, or otherwise removed from a refinery or terminal. 
           Subd. 5.  [DENATURED ETHANOL.] Denatured ethanol that is to 
        be blended with gasoline must be agriculturally derived and must 
        comply with ASTM specification D4806-01 D4806-04a.  This 
        includes the requirement that ethanol may be denatured only as 
        specified in Code of Federal Regulations, title 27, parts 20 and 
        21. 
           Subd. 6.  [GASOLINE BLENDED WITH NONETHANOL OXYGENATE.] (a) 
        A person responsible for the product shall comply with the 
        following requirements: 
           (1) after July 1, 2000, gasoline containing in excess of 
        one-third of one percent, in total, of nonethanol oxygenates 
        listed in paragraph (b) must not be sold or offered for sale at 
        any time in this state; and 
           (2) after July 1, 2005, gasoline containing any of the 
        nonethanol oxygenates listed in paragraph (b) must not be sold 
        or offered for sale in this state. 
           (b) The oxygenates prohibited under paragraph (a) are: 
           (1) methyl tertiary butyl ether, as defined in section 
        296A.01, subdivision 34; 
           (2) ethyl tertiary butyl ether, as defined in section 
        296A.01, subdivision 18; or 
           (3) tertiary amyl methyl ether. 
           (c) Gasoline that is blended with a nonethanol oxygenate 
        must comply with ASTM specification D4814-01 D4814-04a.  
        Nonethanol oxygenates must not be blended into gasoline after 
        the gasoline has been sold, transferred, or otherwise removed 
        from a refinery or terminal. 
           Subd. 7.  [HEATING FUEL OIL.] Heating fuel oil must comply 
        with ASTM specification D396-01 D396-02a. 
           Subd. 8.  [DIESEL FUEL OIL.] Diesel fuel oil must comply 
        with ASTM specification D975-01a D975-04b, except that diesel 
        fuel oil is not required to meet the diesel lubricity standard 
        until the date that the biodiesel fuel requirement in section 
        239.77, subdivision 2, becomes effective or December 31, 2005, 
        whichever comes first. 
           Subd. 9.  [KEROSENE.] Kerosene must comply with ASTM 
        specification D3699-01 D3699-03. 
           Subd. 10.  [AVIATION GASOLINE.] Aviation gasoline must 
        comply with ASTM specification D910-00 D910-04. 
           Subd. 11.  [AVIATION TURBINE FUEL, JET FUEL.] Aviation 
        turbine fuel and jet fuel must comply with ASTM specification 
        D1655-01 D1655-04. 
           Subd. 12.  [GAS TURBINE FUEL OIL.] Fuel oil for use in 
        nonaviation gas turbine engines must comply with ASTM 
        specification D2880-00 D2880-03. 
           Subd. 13.  [E85.] A blend of ethanol and gasoline, 
        containing at least 60 percent ethanol and not more than 85 
        percent ethanol, produced for use as a motor fuel in alternative 
        fuel vehicles as defined in section 296A.01, subdivision 5, must 
        comply with ASTM specification D5798-99 (2004). 
           Subd. 14.  [M85.] A blend of methanol and gasoline, 
        containing at least 85 percent methanol, produced for use as a 
        motor fuel in alternative fuel vehicles as defined in section 
        296A.01, subdivision 5, must comply with ASTM specification 
        D5797-96. 
           Sec. 67.  Minnesota Statutes 2004, section 239.77, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [DISCLOSURE.] A refinery or terminal shall 
        provide, at the time diesel fuel is sold or transferred from the 
        refinery or terminal, a bill of lading or shipping manifest to 
        the person who receives the fuel.  For biodiesel-blended 
        products, the bill of lading or shipping manifest must disclose 
        biodiesel content, stating volume percentage, gallons of 
        biodiesel per gallons of petroleum diesel base-stock, or an ASTM 
        "Bxx" designation where "xx" denotes the volume percent 
        biodiesel included in the blended product.  This subdivision 
        does not apply to sales or transfers of biodiesel blend stock 
        between refineries, between terminals, or between a refinery and 
        a terminal. 
           Sec. 68.  Minnesota Statutes 2004, section 239.79, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SALE OF CERTAIN PETROLEUM PRODUCTS ON GROSS 
        VOLUME BASIS.] A person responsible for the products listed in 
        this subdivision shall transfer, ship, distribute, offer for 
        distribution, sell, or offer to sell the products by volume.  
        Volumetric measurement of the product must not be temperature 
        compensated, or adjusted by any other factor.  This subdivision 
        applies to gasoline, number one and number two diesel fuel oils, 
        number one and number two heating fuel oils, kerosene, denatured 
        ethanol that is to be blended into gasoline, and an oxygenate 
        that is to be blended into gasoline, and biodiesel.  This 
        subdivision does not apply to the measurement of petroleum 
        products transferred, sold, or traded between refineries, 
        between refineries and terminals, or between terminals.  
           Sec. 69.  Minnesota Statutes 2004, section 239.791, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MINIMUM ETHANOL CONTENT REQUIRED.] (a) 
        Except as provided in subdivisions 10 to 14, a person 
        responsible for the product shall ensure that all gasoline sold 
        or offered for sale in Minnesota must contain at least 10.0 
        percent denatured ethanol by volume. 
           (b) For purposes of enforcing the minimum ethanol 
        requirement of paragraph (a), a gasoline/ethanol blend will be 
        construed to be in compliance if the ethanol content, exclusive 
        of denaturants and permitted contaminants, comprises not less 
        than 9.2 percent by volume and not more than 10.0 percent by 
        volume of the blend as determined by an appropriate United 
        States Environmental Protection Agency or American Society of 
        Testing Materials standard method of analysis of alcohol/ether 
        content in motor engine fuels. 
           Sec. 70.  Minnesota Statutes 2004, section 239.791, 
        subdivision 7, is amended to read: 
           Subd. 7.  [OXYGENATE ETHANOL RECORDS; STATE AUDIT.] The 
        director shall audit the records of registered oxygenate ethanol 
        blenders to ensure that each blender has met all requirements in 
        this chapter.  Specific information or data relating to sales 
        figures or to processes or methods of production unique to the 
        blender or that would tend to adversely affect the competitive 
        position of the blender must be only for the confidential use of 
        the director, unless otherwise specifically authorized by the 
        registered blender. 
           Sec. 71.  Minnesota Statutes 2004, section 239.791, 
        subdivision 8, is amended to read: 
           Subd. 8.  [DISCLOSURE.] A refinery or terminal, shall 
        provide, at the time gasoline is sold or transferred from the 
        refinery or terminal, a bill of lading or shipping manifest to 
        the person who receives the gasoline.  For oxygenated gasoline, 
        the bill of lading or shipping manifest must include the 
        identity and the volume percentage or gallons of oxygenate 
        included in the gasoline, and it must state:  "This fuel 
        contains an oxygenate.  Do not blend this fuel with ethanol or 
        with any other oxygenate."  For nonoxygenated gasoline sold or 
        transferred before October 1, 1997, the bill or manifest must 
        state:  "This fuel must not be sold at retail in a carbon 
        monoxide control area."  For nonoxygenated gasoline sold or 
        transferred after September 30, 1997, the bill or manifest must 
        state:  "This fuel is not oxygenated.  It must not be sold at 
        retail in Minnesota."  This subdivision does not apply to sales 
        or transfers of gasoline between refineries, between terminals, 
        or between a refinery and a terminal. 
           Sec. 72.  Minnesota Statutes 2004, section 239.791, 
        subdivision 15, is amended to read: 
           Subd. 15.  [EXEMPTION FOR CERTAIN BLEND PUMPS.] (a) A 
        person responsible for the product, who offers for sale, sells, 
        or dispenses nonoxygenated premium gasoline under one or more of 
        the exemptions in subdivisions 10 to 14, may sell, offer for 
        sale, or dispense oxygenated gasoline that contains less than 
        the minimum amount of ethanol required under subdivision 1 if 
        all of the following conditions are met: 
           (1) the blended gasoline has an octane rating of 88 or 
        greater; 
           (2) the gasoline is a blend of oxygenated gasoline meeting 
        the requirements of subdivision 1 with nonoxygenated premium 
        gasoline; 
           (3) the blended gasoline contains not more than ten percent 
        nonoxygenated premium gasoline; 
           (4) the blending of oxygenated gasoline with nonoxygenated 
        gasoline occurs within the gasoline dispenser; and 
           (5) the gasoline station at which the gasoline is sold, 
        offered for sale, or delivered is equipped to store gasoline in 
        not more than two storage tanks.  
           (b) This subdivision applies only to those persons who meet 
        the conditions in paragraph (a), clauses (1) through (5), on the 
        effective date of this act August 1, 2004, and have registered 
        with the director within three months of the effective that date 
        of this act. 
           Sec. 73.  Minnesota Statutes 2004, section 239.792, is 
        amended to read: 
           239.792 [GASOLINE OCTANE AUTOMOTIVE FUEL RATINGS, 
        CERTIFICATION, AND POSTING.] 
           Subdivision 1.  [DISCLOSURE DUTIES OF REFINERS, IMPORTERS, 
        AND PRODUCERS.] A manufacturer, hauler, blender, agent, jobber, 
        consignment agent refiner, importer, or distributor who sells, 
        delivers, or distributes gasoline or gasoline-oxygenate blends, 
        shall provide, at the time of delivery, a bill of lading or 
        shipping manifest to the person who receives the gasoline.  The 
        bill or manifest must state the minimum octane of the gasoline 
        delivered.  The stated octane number must be the average of the 
        "motor method" octane number and the "research method" octane 
        number as determined by the test methods in ASTM specification 
        D4814-01, or by a test method adopted by department 
        rule producer of automotive fuel must comply with the automotive 
        fuel rating, certification, and record-keeping requirements of 
        Code of Federal Regulations, title 16, sections 306.5 to 306.7. 
           Subd. 2.  [DISPENSER LABELING DUTIES OF DISTRIBUTORS.] A 
        person responsible for the product shall clearly, conspicuously, 
        and permanently label each gasoline dispenser that is used to 
        sell gasoline or gasoline-oxygenate blends at retail or to 
        dispense gasoline or gasoline-oxygenate blends into the fuel 
        supply tanks of motor vehicles, with the minimum octane of the 
        gasoline dispensed.  The label must meet the following 
        requirements: 
           (a) The octane number displayed on the label must represent 
        the average of the "motor method" octane number and the 
        "research method" octane number as determined by the test 
        methods in ASTM specification D4814-01, or by a test method 
        adopted by department rule. 
           (b) The label must be at least 2-1/2 inches high and three 
        inches wide, with a yellow background, black border, and black 
        figures and letters. 
           (c) The number representing the octane of the gasoline must 
        be at least one inch high. 
           (d) The label must include the words "minimum octane" and 
        the term "(R+M)/2" or "(RON+MON)/2." A licensed distributor of 
        automotive fuel must comply with the certification and 
        record-keeping provisions of Code of Federal Regulations, title 
        16, sections 306.8 and 306.9. 
           Subd. 3.  [DUTIES OF RETAILERS.] A person responsible for 
        the product who sells or transfers automotive fuel to a consumer 
        must comply with the automotive fuel rating posting and 
        record-keeping requirements, and the label specifications of 
        Code of Federal Regulations, title 16, sections 306.10 to 306.12.
           Subd. 4.  [DUTIES OF DIRECTOR.] Upon request, the director 
        shall provide any person with a copy of Code of Federal 
        Regulations, title 16, part 306.  Upon request, the director 
        shall provide any distributor, retailer, or organization of 
        distributors or retailers with the label specifications in Code 
        of Federal Regulations, title 16, section 306.12. 
           Sec. 74.  Minnesota Statutes 2004, section 268.19, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [USE OF DATA.] (a) Except as otherwise 
        provided by this section, data gathered from any person pursuant 
        to the administration of the Minnesota Unemployment Insurance 
        Law are private data on individuals or nonpublic data not on 
        individuals as defined in section 13.02, subdivisions 9 and 12, 
        and may not be disclosed except pursuant to a court order or 
        section 13.05.  A subpoena shall not be considered a court 
        order.  These data may be disseminated to and used by the 
        following agencies without the consent of the subject of the 
        data:  
           (1) state and federal agencies specifically authorized 
        access to the data by state or federal law; 
           (2) any agency of any other state or any federal agency 
        charged with the administration of an unemployment insurance 
        program; 
           (3) any agency responsible for the maintenance of a system 
        of public employment offices for the purpose of assisting 
        individuals in obtaining employment; 
           (4) human rights agencies within Minnesota that have 
        enforcement powers; 
           (5) the Department of Revenue only to the extent necessary 
        for its duties under Minnesota laws; 
           (6) public and private agencies responsible for 
        administering publicly financed assistance programs for the 
        purpose of monitoring the eligibility of the program's 
        recipients; 
           (7) the Department of Labor and Industry and the Division 
        of Insurance Fraud Prevention in the Department of Commerce on 
        an interchangeable basis with the department for uses consistent 
        with the administration of their duties under Minnesota law; 
           (8) local and state welfare agencies for monitoring the 
        eligibility of the data subject for assistance programs, or for 
        any employment or training program administered by those 
        agencies, whether alone, in combination with another welfare 
        agency, or in conjunction with the department or to monitor and 
        evaluate the statewide Minnesota family investment program by 
        providing data on recipients and former recipients of food 
        stamps or food support, cash assistance under chapter 256, 256D, 
        256J, or 256K, child care assistance under chapter 119B, or 
        medical programs under chapter 256B, 256D, or 256L; 
           (9) local and state welfare agencies for the purpose of 
        identifying employment, wages, and other information to assist 
        in the collection of an overpayment debt in an assistance 
        program; 
           (10) local, state, and federal law enforcement agencies for 
        the sole purpose of ascertaining the last known address and 
        employment location of a person who is the subject of a criminal 
        investigation; 
           (10) (11) the federal Immigration and Naturalization 
        Service shall have access to data on specific individuals and 
        specific employers provided the specific individual or specific 
        employer is the subject of an investigation by that agency; and 
           (11) (12) the Department of Health solely for the purposes 
        of epidemiologic investigations.  
           (b) Data on individuals and employers that are collected, 
        maintained, or used by the department in an investigation 
        pursuant to section 268.182 are confidential as to data on 
        individuals and protected nonpublic data not on individuals as 
        defined in section 13.02, subdivisions 3 and 13, and must not be 
        disclosed except pursuant to statute or court order or to a 
        party named in a criminal proceeding, administrative or 
        judicial, for preparation of a defense.  
           (c) Data gathered by the department pursuant to the 
        administration of the Minnesota unemployment insurance program 
        must not be made the subject or the basis for any suit in any 
        civil proceedings, administrative or judicial, unless the action 
        is initiated by the department. 
           Sec. 75.  [290.0676] [EXPLORE MINNESOTA TOURISM TAX 
        REPORT.] 
           Within 30 days of the end of each quarter, the Department 
        of Revenue shall provide Explore Minnesota Tourism with a 
        quarterly report of comparisons of quarterly sales taxes 
        collected under the Standard Industrial Classification System, 
        or equivalent codes in the North America Industry Classification 
        System, in the following areas: 
           (1) SIC 70, lodging; 
           (2) SIC 79, amusement and recreation; and 
           (3) SIC 58, eating and drinking. 
           [EFFECTIVE DATE.] This section is effective for taxable 
        years beginning after December 31, 2004. 
           Sec. 76.  Minnesota Statutes 2004, section 296A.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AGRICULTURAL ALCOHOL GASOLINE.] "Agricultural 
        alcohol gasoline" means a gasoline-ethanol blend of up to ten 
        percent agriculturally derived fermentation ethanol derived from 
        agricultural products, such as potatoes, cereal, grains, cheese 
        whey, sugar beets, forest products, or other renewable 
        resources, that: 
           (1) meets the specifications in ASTM specification D4806-01 
        D4806-04a; and 
           (2) is denatured as specified in Code of Federal 
        Regulations, title 27, parts 20 and 21. 
           Sec. 77.  Minnesota Statutes 2004, section 296A.01, 
        subdivision 7, is amended to read: 
           Subd. 7.  [AVIATION GASOLINE.] "Aviation gasoline" means 
        any gasoline that is capable of use for the purpose of producing 
        or generating power for propelling internal combustion engine 
        aircraft, that meets the specifications in ASTM 
        specification D910-00 D910-04, and that either: 
           (1) is invoiced and billed by a producer, manufacturer, 
        refiner, or blender to a distributor or dealer, by a distributor 
        to a dealer or consumer, or by a dealer to consumer, as 
        "aviation gasoline"; or 
           (2) whether or not invoiced and billed as provided in 
        clause (1), is received, sold, stored, or withdrawn from storage 
        by any person, to be used for the purpose of producing or 
        generating power for propelling internal combustion engine 
        aircraft. 
           Sec. 78.  Minnesota Statutes 2004, section 296A.01, 
        subdivision 8, is amended to read: 
           Subd. 8.  [AVIATION TURBINE FUEL AND JET FUEL.] "Aviation 
        turbine fuel" and "jet fuel" mean blends of hydrocarbons derived 
        from crude petroleum, natural gasoline, and synthetic 
        hydrocarbons, intended for use in aviation turbine engines, and 
        that meet the specifications in ASTM specification 
        D1655-01 D1655.04. 
           Sec. 79.  Minnesota Statutes 2004, section 296A.01, 
        subdivision 14, is amended to read: 
           Subd. 14.  [DIESEL FUEL OIL.] "Diesel fuel oil" means a 
        petroleum distillate or blend of petroleum distillate and 
        residual fuels, intended for use as a motor fuel in internal 
        combustion diesel engines, that meets the specifications in ASTM 
        specification D975-01A D975-04b, except that diesel fuel oil is 
        not required to meet the diesel lubricity standard until the 
        date that the biodiesel fuel requirement in section 239.77, 
        subdivision 2, becomes effective or December 31, 2005, whichever 
        comes first.  Diesel fuel includes number 1 and number 2 fuel 
        oils.  K-1 kerosene is not diesel fuel unless it is blended with 
        diesel fuel for use in motor vehicles.  
           Sec. 80.  Minnesota Statutes 2004, section 296A.01, 
        subdivision 19, is amended to read: 
           Subd. 19.  [E85.] "E85" means a petroleum product that is a 
        blend of agriculturally derived denatured ethanol and gasoline 
        or natural gasoline that typically contains 85 percent ethanol 
        by volume, but at a minimum must contain 60 percent ethanol by 
        volume.  For the purposes of this chapter, the energy content of 
        E85 will be considered to be 82,000 BTUs per gallon.  E85 
        produced for use as a motor fuel in alternative fuel vehicles as 
        defined in subdivision 5 must comply with ASTM specification 
        D5798-99 (2004). 
           Sec. 81.  Minnesota Statutes 2004, section 296A.01, 
        subdivision 20, is amended to read: 
           Subd. 20.  [ETHANOL, DENATURED.] "Ethanol, denatured" means 
        ethanol that is to be blended with gasoline, has been 
        agriculturally derived, and complies with ASTM specification 
        D4806-01 D4806-04a.  This includes the requirement that ethanol 
        may be denatured only as specified in Code of Federal 
        Regulations, title 27, parts 20 and 21. 
           Sec. 82.  Minnesota Statutes 2004, section 296A.01, 
        subdivision 22, is amended to read: 
           Subd. 22.  [GAS TURBINE FUEL OIL.] "Gas turbine fuel oil" 
        means fuel that contains mixtures of hydrocarbon oils free of 
        inorganic acid and excessive amounts of solid or fibrous foreign 
        matter, intended for use in nonaviation gas turbine engines, and 
        that meets the specifications in ASTM specification 
        D2880-00 D2880-03. 
           Sec. 83.  Minnesota Statutes 2004, section 296A.01, 
        subdivision 23, is amended to read: 
           Subd. 23.  [GASOLINE.] (a) "Gasoline" means: 
           (1) all products commonly or commercially known or sold as 
        gasoline regardless of their classification or uses, except 
        casinghead gasoline, absorption gasoline, condensation gasoline, 
        drip gasoline, or natural gasoline that under the requirements 
        of section 239.761, subdivision 3, must not be blended with 
        gasoline that has been sold, transferred, or otherwise removed 
        from a refinery or terminal; and 
           (2) any liquid prepared, advertised, offered for sale or 
        sold for use as, or commonly and commercially used as, a fuel in 
        spark-ignition, internal combustion engines, and that when 
        tested by the Weights and Measures Division meets the 
        specifications in ASTM specification D4814-01 D4814-04a. 
           (b) Gasoline that is not blended with ethanol must not be 
        contaminated with water or other impurities and must comply with 
        both ASTM specification D4814-01 D4814-04a and the volatility 
        requirements in Code of Federal Regulations, title 40, part 80. 
           (c) After gasoline is sold, transferred, or otherwise 
        removed from a refinery or terminal, a person responsible for 
        the product: 
           (1) may blend the gasoline with agriculturally derived 
        ethanol, as provided in subdivision 24; 
           (2) must not blend the gasoline with any oxygenate other 
        than denatured, agriculturally derived ethanol; 
           (3) must not blend the gasoline with other petroleum 
        products that are not gasoline or denatured, agriculturally 
        derived ethanol; 
           (4) must not blend the gasoline with products commonly and 
        commercially known as casinghead gasoline, absorption gasoline, 
        condensation gasoline, drip gasoline, or natural gasoline; and 
           (5) may blend the gasoline with a detergent additive, an 
        antiknock additive, or an additive designed to replace 
        tetra-ethyl lead, that is registered by the EPA. 
           Sec. 84.  Minnesota Statutes 2004, section 296A.01, 
        subdivision 24, is amended to read: 
           Subd. 24.  [GASOLINE BLENDED WITH NONETHANOL OXYGENATE.] 
        "Gasoline blended with nonethanol oxygenate" means gasoline 
        blended with ETBE, MTBE, or other alcohol or ether, except 
        denatured ethanol, that is approved as an oxygenate by the EPA, 
        and that complies with ASTM specification D4814-01 D4814-04a.  
        Oxygenates, other than denatured ethanol, must not be blended 
        into gasoline after the gasoline has been sold, transferred, or 
        otherwise removed from a refinery or terminal. 
           Sec. 85.  Minnesota Statutes 2004, section 296A.01, 
        subdivision 25, is amended to read: 
           Subd. 25.  [GASOLINE BLENDED WITH ETHANOL.] "Gasoline 
        blended with ethanol" means gasoline blended with up to ten 
        percent, by volume, agriculturally derived, denatured ethanol.  
        The blend must comply with the volatility requirements in Code 
        of Federal Regulations, title 40, part 80.  The blend must also 
        comply with ASTM specification D4814-01 D4814-04a, or the 
        gasoline base stock from which a gasoline-ethanol blend was 
        produced must comply with ASTM specification D4814-01 D4814-04a; 
        and the gasoline-ethanol blend must not be blended with 
        casinghead gasoline, absorption gasoline, condensation gasoline, 
        drip gasoline, or natural gasoline after the gasoline-ethanol 
        blend has been sold, transferred, or otherwise removed from a 
        refinery or terminal.  The blend need not comply with ASTM 
        specification D4814-01 D4814-04a if it is subjected to a 
        standard distillation test.  For a distillation test, a 
        gasoline-ethanol blend is not required to comply with the 
        temperature specification at the 50 percent liquid recovery 
        point, if the gasoline from which the gasoline-ethanol blend was 
        produced complies with all of the distillation specifications. 
           Sec. 86.  Minnesota Statutes 2004, section 296A.01, 
        subdivision 26, is amended to read: 
           Subd. 26.  [HEATING FUEL OIL.] "Heating fuel oil" means a 
        petroleum distillate, blend of petroleum distillates and 
        residuals, or petroleum residual heating fuel that meets the 
        specifications in ASTM specification D396-01 D396-02a. 
           Sec. 87.  Minnesota Statutes 2004, section 296A.01, 
        subdivision 28, is amended to read: 
           Subd. 28.  [KEROSENE.] "Kerosene" means a refined petroleum 
        distillate consisting of a homogeneous mixture of hydrocarbons 
        essentially free of water, inorganic acidic and basic compounds, 
        and excessive amounts of particulate contaminants and that meets 
        the specifications in ASTM specification D3699-01 D3699-03. 
           Sec. 88.  Minnesota Statutes 2004, section 298.22, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [SALE OR PRIVATIZATION OF FUNCTIONS.] The 
        commissioner of Iron Range resources and rehabilitation may not 
        sell or privatize the Ironworld Discovery Center or Giants Ridge 
        Golf and Ski Resort without prior approval by a majority vote of 
        the board. 
           Sec. 89.  Minnesota Statutes 2004, section 298.28, 
        subdivision 9b, is amended to read: 
           Subd. 9b.  [TACONITE ENVIRONMENTAL FUND.] Five cents per 
        ton for distributions in 1999, 2000, 2001, 2002, and 2003 must 
        be paid to the taconite environmental fund for use under section 
        298.2961, subdivision 4.  
           [EFFECTIVE DATE.] This section is effective for 
        distributions in 2005 and later years. 
           Sec. 90.  Minnesota Statutes 2004, section 298.28, 
        subdivision 10, is amended to read: 
           Subd. 10.  [INCREASE.] (a) Except as provided in paragraph 
        (b), beginning with distributions in 2000, the amount determined 
        under subdivision 9 shall be increased in the same proportion as 
        the increase in the implicit price deflator as provided in 
        section 298.24, subdivision 1.  Beginning with distributions in 
        2003, the amount determined under subdivision 6, paragraph (a), 
        shall be increased in the same proportion as the increase in the 
        implicit price deflator as provided in section 298.24, 
        subdivision 1.  
           (b) For distributions in 2005 and subsequent years, an 
        amount equal to the increased tax proceeds attributable to the 
        increase in the implicit price deflator as provided in section 
        298.24, subdivision 1, for taxes paid in 2005, except for the 
        amount of revenue increases provided in subdivision 4, paragraph 
        (d), is distributed to the grant and loan fund established in 
        section 298.2961, subdivision 4. 
           Sec. 91.  Minnesota Statutes 2004, section 298.2961, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [GRANT AND LOAN FUND.] (a) A fund is established 
        to receive distributions under section 298.28, subdivision 9b, 
        and to make grants or loans as provided in this subdivision.  
        Any grant or loan made under this subdivision must be approved 
        by a majority of the members of the Iron Range Resources and 
        Rehabilitation Board, established under section 298.22. 
           (b) Distributions received in calendar year 2005 are 
        allocated to the city of Virginia for improvements and repairs 
        to the city's steam heating system. 
           (c) Distributions received in calendar year 2006 are 
        allocated to a project of the public utilities commissions of 
        the cities of Hibbing and Virginia to convert their electrical 
        generating plants to the use of biomass products, such as wood. 
           (d) Distributions received in calendar year 2007 must be 
        paid to the city of Tower to be used for the East Two Rivers 
        project in or near the city of Tower. 
           (e) For distributions received in 2008 and later, amounts 
        may be allocated to joint ventures with mining companies for 
        reclamation of lands containing abandoned or worked out mines to 
        convert these lands to marketable properties for residential, 
        recreational, commercial, or other valuable uses. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 92.  Minnesota Statutes 2004, section 325E.311, 
        subdivision 6, is amended to read: 
           Subd. 6.  [TELEPHONE SOLICITATION.] "Telephone 
        solicitation" means any voice communication over a telephone 
        line for the purpose of encouraging the purchase or rental of, 
        or investment in, property, goods, or services, whether the 
        communication is made by a live operator, through the use of an 
        automatic dialing-announcing device as defined in section 
        325E.26, subdivision 2, or by other means.  Telephone 
        solicitation does not include communications: 
           (1) to any residential subscriber with that subscriber's 
        prior express invitation or permission; or 
           (2) by or on behalf of any person or entity with whom a 
        residential subscriber has a prior or current business or 
        personal relationship;. 
        Telephone solicitation also does not include communications if 
        the caller is identified by a caller identification service and 
        the call is: 
           (3) (i) by or on behalf of an organization that is 
        identified as a nonprofit organization under state or federal 
        law; or 
           (4) (ii) by a person soliciting without the intent to 
        complete, and who does not in fact complete, the sales 
        presentation during the call, but who will complete the sales 
        presentation at a later face-to-face meeting between the 
        solicitor who makes the call and the prospective purchaser; or 
           (iii) by a political party as defined under section 200.02, 
        subdivision 6. 
           Sec. 93.  [325F.991] [911 EMERGENCY PHONE SERVICE 
        REPRESENTATIONS.] 
           Subdivision 1.  [DEFINITIONS.] For purposes of this 
        section, the terms defined in this subdivision have the meanings 
        given them. 
           (a) "911 emergency telecommunications system" means a 
        dedicated emergency telecommunications system required by 
        section 403.025. 
           (b) "Person" means an individual, corporation, firm, or 
        other legal entity. 
           (c) "Service provider" means a person doing business in 
        Minnesota who provides real time, two-way voice service 
        interconnected with the public switched telephone network using 
        numbers allocated for Minnesota by the North American Numbering 
        Plan Administration. 
           Subd. 2.  [REPRESENTATIONS OF 911 SERVICE.] A person shall 
        not advertise, market, or otherwise represent that the person 
        furnishes a service capable of providing access to emergency 
        services by dialing 911 unless the person provides a service 
        that routes 911 calls through the 911 emergency 
        telecommunications system. 
           Subd. 3.  [DISCLOSURE.] A service provider that does not 
        provide 911 dialing that routes 911 calls through the 911 
        emergency telecommunications system must disclose that fact in 
        all advertisements, marketing materials, and contracts.  The 
        disclosure must be in capital letters, in 12-point font, and on 
        the front page of the advertisement, marketing materials, and 
        contracts.  The disclosure must state:  "THIS SERVICE DOES NOT 
        ROUTE 911 CALLS THROUGH THE 911 EMERGENCY SYSTEM." 
           Subd. 4.  [CERTAIN CALLS NOT 911 CALLS.] For purposes of 
        this section, 911 calls routed to the general access number at a 
        public safety answering point do not qualify as being routed 
        through a 911 emergency telecommunications system.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment.  
           Sec. 94.  Minnesota Statutes 2004, section 326.975, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERALLY.] (a) In addition to any other 
        fees, each applicant for a license under sections 326.83 to 
        326.98 shall pay a fee to the contractor's recovery fund.  The 
        contractor's recovery fund is created in the state treasury and 
        must be administered by the commissioner in the manner and 
        subject to all the requirements and limitations provided by 
        section 82.43 with the following exceptions: 
           (1) each licensee who renews a license shall pay in 
        addition to the appropriate renewal fee an additional fee which 
        shall be credited to the contractor's recovery fund.  The amount 
        of the fee shall be based on the licensee's gross annual 
        receipts for the licensee's most recent fiscal year preceding 
        the renewal, on the following scale: 
                  Fee           Gross Receipts
                  $100          under $1,000,000
                  $150          $1,000,000 to $5,000,000
                  $200          over $5,000,000
        Any person who receives a new license shall pay a fee based on 
        the same scale; 
           (2) the sole purpose of this fund is: 
           (i) to compensate any aggrieved owner or lessee of 
        residential property located within this state who obtains a 
        final judgment in any court of competent jurisdiction against a 
        licensee licensed under section 326.84, on grounds of 
        fraudulent, deceptive, or dishonest practices, conversion of 
        funds, or failure of performance arising directly out of any 
        transaction when the judgment debtor was licensed and performed 
        any of the activities enumerated under section 326.83, 
        subdivision 19, on the owner's residential property or on 
        residential property rented by the lessee, or on new residential 
        construction which was never occupied prior to purchase by the 
        owner, or which was occupied by the licensee for less than one 
        year prior to purchase by the owner, and which cause of action 
        arose on or after April 1, 1994; and 
           (ii) to reimburse the Department of Commerce for all legal 
        and administrative expenses, including staffing costs, incurred 
        in administering the fund; 
           (3) nothing may obligate the fund for more than $50,000 per 
        claimant, nor more than $75,000 per licensee; and 
           (4) nothing may obligate the fund for claims based on a 
        cause of action that arose before the licensee paid the recovery 
        fund fee set in clause (1), or as provided in section 326.945, 
        subdivision 3.  
           (b) Should the commissioner pay from the contractor's 
        recovery fund any amount in settlement of a claim or toward 
        satisfaction of a judgment against a licensee, the license shall 
        be automatically suspended upon the effective date of an order 
        by the court authorizing payment from the fund.  No licensee 
        shall be granted reinstatement until the licensee has repaid in 
        full, plus interest at the rate of 12 percent a year, twice the 
        amount paid from the fund on the licensee's account, and has 
        obtained a surety bond issued by an insurer authorized to 
        transact business in this state in the amount of at least 
        $40,000.  
           Sec. 95.  Minnesota Statutes 2004, section 345.47, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SECURITIES.] Securities listed on an established 
        stock exchange shall be sold at the prevailing prices on the 
        exchange.  Other securities may be sold over the counter at 
        prevailing prices or, with prior approval of the State Board of 
        Investment, by another method the commissioner determines 
        advisable.  United States government savings bonds and United 
        States war bonds shall be presented to the United States for 
        payment. 
           Sec. 96.  Minnesota Statutes 2004, section 345.47, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [HOLDING PERIOD.] All securities presumed 
        abandoned under section 345.35 and delivered to the commissioner 
        must be held for at least three years before they are sold.  A 
        person making a claim under this section is entitled to receive 
        either the securities delivered to the commissioner by the 
        holder, if they still remain in the hands of the commissioner, 
        or the proceeds received from the sale, but no person has any 
        claim under this section against the state, the holder, any 
        transfer agent, registrar, or other person acting for or on 
        behalf of a holder for any appreciation in the value of the 
        property occurring after delivery by the holder to the 
        commissioner.  If the property is of a type customarily sold on 
        a recognized market or of a type that may be sold over the 
        counter at prevailing prices, the commissioner may sell the 
        property without notice by publication or otherwise.  The 
        commissioner may proceed with the liquidation after holding for 
        one year, with the exception of securities being held as the 
        result of an insurance company demutualization, these types of 
        securities may be sold upon receipt.  This section grants to the 
        commissioner express authority to sell any property, including, 
        but not limited to, stocks, bonds, notes, bills, and all other 
        public or private securities.  A person making a claim under 
        section 345.35 is entitled to receive the securities delivered 
        to the administrator by the holder, if they remain in the 
        custody of the administrator, or the net proceeds received from 
        sale, and is not entitled to receive any appreciation in the 
        value of the property occurring after sale by the commissioner.  
        The commissioner may liquidate all unclaimed securities 
        currently held in custody in accordance with this section. 
           Sec. 97.  Minnesota Statutes 2004, section 353.657, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERALLY.] In the event a member of the 
        police and fire fund dies from any cause before retirement or 
        after becoming disabled and receiving disability benefits, the 
        association shall grant survivor benefits to a surviving spouse, 
        as defined in section 353.01, subdivision 20, and who was 
        married to the member for a period of at least one year, except 
        that if death occurs in the line of duty no time limit is 
        required.  For purposes of this section, line of duty also 
        includes active military service, as defined in section 190.05, 
        subdivision 5.  The association shall also grant survivor 
        benefits to a dependent child or children, as defined in section 
        353.01, subdivision 15. 
           Notwithstanding the definition of surviving spouse, a 
        former spouse of the member, if any, is entitled to a portion of 
        the monthly surviving spouse benefit if stipulated under the 
        terms of a marriage dissolution decree filed with the 
        association.  If there is no surviving spouse or child or 
        children, a former spouse may be entitled to a lump-sum refund 
        payment under section 353.32, subdivision 1, if provided for in 
        a marriage dissolution decree but not a monthly surviving spouse 
        benefit despite the terms of a marriage dissolution decree filed 
        with the association. 
           The spouse and child or children are entitled to monthly 
        benefits as provided in the following subdivisions. 
           [EFFECTIVE DATE.] This section is effective immediately and 
        applies to members of the police and fire fund at any time on or 
        after September 11, 2001. 
           Sec. 98.  [354B.33] [IRON RANGE RESOURCES AND 
        REHABILITATION; EARLY SEPARATION INCENTIVE PROGRAM 
        AUTHORIZATION.] 
           (a) Notwithstanding any law to the contrary, the 
        commissioner of Iron Range resources and rehabilitation, in 
        consultation with the commissioner of employee relations, may 
        offer a targeted early separation incentive program for 
        employees of the commissioner who have attained the age of 60 
        years and have at least five years of allowable service credit 
        under chapter 352, or who have received credit for at least 30 
        years of allowable service under the provisions of chapter 352. 
           (b) The early separation incentive program may include one 
        or more of the following: 
           (1) employer-paid postseparation health, medical, and 
        dental insurance until age 65; and 
           (2) cash incentives that may, but are not required to be, 
        used to purchase additional years of service credit through the 
        Minnesota State Retirement System, to the extent that the 
        purchases are otherwise authorized by law. 
           (c) The commissioner of Iron Range resources and 
        rehabilitation shall establish eligibility requirements for 
        employees to receive an incentive. 
           (d) The commissioner of Iron Range Resources and 
        Rehabilitation, consistent with the established program 
        provisions under paragraph (b), and with the eligibility 
        requirements under paragraph (c), may designate specific 
        programs or employees as eligible to be offered the incentive 
        program. 
           (e) Acceptance of the offered incentive must be voluntary 
        on the part of the employee and must be in writing.  The 
        incentive may only be offered at the sole discretion of the 
        commissioner of Iron Range resources and rehabilitation. 
           (f) The cost of the incentive is payable solely by funds 
        made available to the commissioner of Iron Range resources and 
        rehabilitation by law, but only on prior approval of the 
        expenditures by a majority of the Iron Range Resources and 
        Rehabilitation Board. 
           (g) This section expires June 30, 2006. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 99.  Minnesota Statutes 2004, section 357.021, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [TRANSMITTAL OF FEES TO COMMISSIONER OF 
        FINANCE.] (a) Every person, including the state of Minnesota and 
        all bodies politic and corporate, who shall transact any 
        business in the district court, shall pay to the court 
        administrator of said court the sundry fees prescribed in 
        subdivision 2.  Except as provided in paragraph (d), the court 
        administrator shall transmit the fees monthly to the 
        commissioner of finance for deposit in the state treasury and 
        credit to the general fund.  $30 of each fee collected in a 
        dissolution action under subdivision 2, clause (1), must be 
        deposited by the commissioner of finance in the special revenue 
        fund and is appropriated to the commissioner of employment and 
        economic development for the displaced homemaker program under 
        section 116L.96. 
           (b) In a county which has a screener-collector position, 
        fees paid by a county pursuant to this subdivision shall be 
        transmitted monthly to the county treasurer, who shall apply the 
        fees first to reimburse the county for the amount of the salary 
        paid for the screener-collector position.  The balance of the 
        fees collected shall then be forwarded to the commissioner of 
        finance for deposit in the state treasury and credited to the 
        general fund.  In a county in a judicial district under section 
        480.181, subdivision 1, paragraph (b), which has a 
        screener-collector position, the fees paid by a county shall be 
        transmitted monthly to the commissioner of finance for deposit 
        in the state treasury and credited to the general fund.  A 
        screener-collector position for purposes of this paragraph is an 
        employee whose function is to increase the collection of fines 
        and to review the incomes of potential clients of the public 
        defender, in order to verify eligibility for that service. 
           (c) No fee is required under this section from the public 
        authority or the party the public authority represents in an 
        action for: 
           (1) child support enforcement or modification, medical 
        assistance enforcement, or establishment of parentage in the 
        district court, or in a proceeding under section 484.702; 
           (2) civil commitment under chapter 253B; 
           (3) the appointment of a public conservator or public 
        guardian or any other action under chapters 252A and 525; 
           (4) wrongfully obtaining public assistance under section 
        256.98 or 256D.07, or recovery of overpayments of public 
        assistance; 
           (5) court relief under chapter 260; 
           (6) forfeiture of property under sections 169A.63 and 
        609.531 to 609.5317; 
           (7) recovery of amounts issued by political subdivisions or 
        public institutions under sections 246.52, 252.27, 256.045, 
        256.25, 256.87, 256B.042, 256B.14, 256B.15, 256B.37, 260B.331, 
        and 260C.331, or other sections referring to other forms of 
        public assistance; 
           (8) restitution under section 611A.04; or 
           (9) actions seeking monetary relief in favor of the state 
        pursuant to section 16D.14, subdivision 5. 
           (d) The fees collected for child support modifications 
        under subdivision 2, clause (13), must be transmitted to the 
        county treasurer for deposit in the county general fund.  The 
        fees must be used by the county to pay for child support 
        enforcement efforts by county attorneys. 
           Sec. 100.  Minnesota Statutes 2004, section 357.021, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FEE AMOUNTS.] The fees to be charged and 
        collected by the court administrator shall be as follows: 
           (1) In every civil action or proceeding in said court, 
        including any case arising under the tax laws of the state that 
        could be transferred or appealed to the Tax Court, the 
        plaintiff, petitioner, or other moving party shall pay, when the 
        first paper is filed for that party in said action, a fee of 
        $235 $240, except in marriage dissolution actions the fee is 
        $270. 
           The defendant or other adverse or intervening party, or any 
        one or more of several defendants or other adverse or 
        intervening parties appearing separately from the others, shall 
        pay, when the first paper is filed for that party in said 
        action, a fee of $235 $240, except in marriage dissolution 
        actions the fee is $270. 
           The party requesting a trial by jury shall pay $75. 
           The fees above stated shall be the full trial fee 
        chargeable to said parties irrespective of whether trial be to 
        the court alone, to the court and jury, or disposed of without 
        trial, and shall include the entry of judgment in the action, 
        but does not include copies or certified copies of any papers so 
        filed or proceedings under chapter 103E, except the provisions 
        therein as to appeals. 
           (2) Certified copy of any instrument from a civil or 
        criminal proceeding, $10, and $5 for an uncertified copy. 
           (3) Issuing a subpoena, $12 for each name. 
           (4) Filing a motion or response to a motion in civil, 
        family, excluding child support, and guardianship cases, $55.  
           (5) Issuing an execution and filing the return thereof; 
        issuing a writ of attachment, injunction, habeas corpus, 
        mandamus, quo warranto, certiorari, or other writs not 
        specifically mentioned, $40. 
           (6) Issuing a transcript of judgment, or for filing and 
        docketing a transcript of judgment from another court, $30. 
           (7) Filing and entering a satisfaction of judgment, partial 
        satisfaction, or assignment of judgment, $5. 
           (8) Certificate as to existence or nonexistence of 
        judgments docketed, $5 for each name certified to. 
           (9) Filing and indexing trade name; or recording basic 
        science certificate; or recording certificate of physicians, 
        osteopaths, chiropractors, veterinarians, or optometrists, $5. 
           (10) For the filing of each partial, final, or annual 
        account in all trusteeships, $40. 
           (11) For the deposit of a will, $20. 
           (12) For recording notary commission, $100, of which, 
        notwithstanding subdivision 1a, paragraph (b), $80 must be 
        forwarded to the commissioner of finance to be deposited in the 
        state treasury and credited to the general fund. 
           (13) Filing a motion or response to a motion for 
        modification of child support, a fee fixed by rule or order of 
        the Supreme Court.  
           (14) All other services required by law for which no fee is 
        provided, such fee as compares favorably with those herein 
        provided, or such as may be fixed by rule or order of the court. 
           (15) In addition to any other filing fees under this 
        chapter, a surcharge in the amount of $75 must be assessed in 
        accordance with section 259.52, subdivision 14, for each 
        adoption petition filed in district court to fund the fathers' 
        adoption registry under section 259.52. 
           The fees in clauses (3) and (5) need not be paid by a 
        public authority or the party the public authority represents. 
           Sec. 101.  Minnesota Statutes 2004, section 373.40, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For purposes of this 
        section, the following terms have the meanings given. 
           (a) "Bonds" means an obligation as defined under section 
        475.51. 
           (b) "Capital improvement" means acquisition or betterment 
        of public lands, development rights in the form of conservation 
        easements under chapter 84C, buildings, or other improvements 
        within the county for the purpose of a county courthouse, 
        administrative building, health or social service facility, 
        correctional facility, jail, law enforcement center, hospital, 
        morgue, library, park, qualified indoor ice arena, and roads and 
        bridges.  An improvement must have an expected useful life of 
        five years or more to qualify.  "Capital improvement" does not 
        include light rail transit or any activity related to it or a 
        recreation or sports facility building (such as, but not limited 
        to, a gymnasium, ice arena, racquet sports facility, swimming 
        pool, exercise room or health spa), unless the building is part 
        of an outdoor park facility and is incidental to the primary 
        purpose of outdoor recreation. 
           (c) "Commissioner" means the commissioner of employment and 
        economic development. 
           (d) "Metropolitan county" means a county located in the 
        seven-county metropolitan area as defined in section 473.121 or 
        a county with a population of 90,000 or more. 
           (e) (d) "Population" means the population established by 
        the most recent of the following (determined as of the date the 
        resolution authorizing the bonds was adopted): 
           (1) the federal decennial census, 
           (2) a special census conducted under contract by the United 
        States Bureau of the Census, or 
           (3) a population estimate made either by the Metropolitan 
        Council or by the state demographer under section 4A.02. 
           (f) (e) "Qualified indoor ice arena" means a facility that 
        meets the requirements of section 373.43. 
           (g) (f) "Tax capacity" means total taxable market value, 
        but does not include captured market value. 
           Sec. 102.  Minnesota Statutes 2004, section 373.40, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CAPITAL IMPROVEMENT PLAN.] (a) A county may 
        adopt a capital improvement plan.  The plan must cover at least 
        the five-year period beginning with the date of its adoption.  
        The plan must set forth the estimated schedule, timing, and 
        details of specific capital improvements by year, together with 
        the estimated cost, the need for the improvement, and sources of 
        revenues to pay for the improvement.  In preparing the capital 
        improvement plan, the county board must consider for each 
        project and for the overall plan: 
           (1) the condition of the county's existing infrastructure, 
        including the projected need for repair or replacement; 
           (2) the likely demand for the improvement; 
           (3) the estimated cost of the improvement; 
           (4) the available public resources; 
           (5) the level of overlapping debt in the county; 
           (6) the relative benefits and costs of alternative uses of 
        the funds; 
           (7) operating costs of the proposed improvements; and 
           (8) alternatives for providing services more efficiently 
        through shared facilities with other counties or local 
        government units. 
           (b) The capital improvement plan and annual amendments to 
        it must be are not effective until approved by the county board 
        after public hearing.  The county must submit the capital 
        improvement plan to the community development division of the 
        Department of Employment and Economic Development.  The plan is 
        not effective if the commissioner disapproves the plan within 90 
        days after it was submitted.  If the commissioner has not 
        disapproved the plan within 90 days after its submission, the 
        plan is deemed approved and effective.  The commissioner shall 
        disapprove a capital improvement plan only if the commissioner 
        determines (1) that the planned improvements cannot be financed 
        within the limits specified in subdivision 4, or (2) the county 
        in preparing the plan did not consider the factors listed in 
        this subdivision or failed to gather the information necessary 
        to evaluate the plan under the factors, or (3) the proposed 
        improvements will result in unnecessary duplication of public 
        facilities provided by other units of government in the region 
        or there is insufficient demand for the facility.  If the plan 
        is disapproved by the commissioner and the county board does not 
        withdraw the plan, the capital improvement plan must be 
        submitted to the voters for approval.  If a majority of the 
        voters approve, the plan is approved and effective. 
           Sec. 103.  Minnesota Statutes 2004, section 462A.05, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [REFINANCING NONPROFITS; RESIDENTIAL HOUSING.] 
        It may refinance the existing indebtedness of nonprofit 
        entities, as defined by the agency owners of rental property, 
        secured by residential housing for occupancy by persons and 
        families of low and moderate income, if refinancing is 
        determined by the agency to be necessary to reduce housing costs 
        to an affordable level or to maintain the supply of affordable 
        low-income housing.  The authority granted in this subdivision 
        is in addition to and not in limitation of the authority granted 
        in section 462A.05, subdivision 14. 
           Sec. 104.  Minnesota Statutes 2004, section 462A.33, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ELIGIBLE RECIPIENTS.] Challenge grants or loans 
        may be made to a city, a federally recognized American Indian 
        tribe or subdivision located in Minnesota, a tribal housing 
        corporation, a private developer, a nonprofit organization, or 
        the owner of the housing, including individuals.  For the 
        purpose of this section, "city" has the meaning given it in 
        section 462A.03, subdivision 21.  To the extent practicable, 
        grants and loans shall be made so that an approximately equal 
        number of housing units are financed in the metropolitan area 
        and in the nonmetropolitan area. 
           Sec. 105.  Minnesota Statutes 2004, section 469.050, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PAY.] A commissioner, including the president, 
        must be paid $35 compensated as provided in section 15.0575, 
        subdivision 3, for each regular or special port authority 
        meeting attended and shall receive reimbursement for expenses 
        incurred while performing duties.  The advisory members of the 
        Duluth authority from the legislature must not be paid for their 
        service to the authority. 
           Sec. 106.  Minnesota Statutes 2004, section 469.1082, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY TO CREATE.] A county located 
        outside the metropolitan area may form a county economic 
        development authority or grant a housing and redevelopment 
        authority the powers specified in subdivision 4, clause (2), if 
        it receives a recommendation to do so from a committee formed 
        under subdivision 2.  An economic development authority 
        established under this section has all the powers and rights of 
        an authority under sections 469.090 to 469.1081, except the 
        authority granted under section 469.094 if so limited under 
        subdivision 4.  This section is in addition to any other 
        authority to create a county economic development authority or 
        service provider.  
           Nothing in this section shall alter or impair any grant of 
        powers, or any other authority granted to a community 
        development agency, a county housing and redevelopment 
        authority, or any county as provided in section 383D.41, Laws 
        1974, chapter 473, as amended, or Laws 1980, chapter 482, as 
        amended.  Any county that has granted economic development 
        powers to a community development agency or a county housing and 
        redevelopment authority under any of these provisions may not 
        form a county economic development authority or grant a housing 
        and redevelopment authority the powers specified in subdivision 
        4, clause (2). 
           Sec. 107.  Minnesota Statutes 2004, section 469.310, 
        subdivision 11, is amended to read: 
           Subd. 11.  [QUALIFIED BUSINESS.] (a) "Qualified business" 
        means A person carrying on a trade or business at a place of 
        business located within a job opportunity building zone is a 
        qualified business for the purposes of sections 469.310 to 
        469.320 according to the criteria in paragraphs (b) to (f).  
           (b) A person is a qualified business only on those parcels 
        of land for which the person has entered into a business subsidy 
        agreement, as required under section 469.313, with the 
        appropriate local government unit in which the parcels are 
        located. 
           (c) Prior to execution of the business subsidy agreement, 
        the local government unit must consider the following factors: 
           (1) how wages compare to the regional industry average; 
           (2) the number of jobs that will be provided relative to 
        overall employment in the community; 
           (3) the economic outlook for the industry the business will 
        engage in; 
           (4) sales that will be generated from outside the state of 
        Minnesota; 
           (5) how the business will build on existing regional 
        strengths or diversify the regional economy; 
           (6) how the business will increase capital investment in 
        the zone; and 
           (7) any other criteria the commissioner deems necessary. 
           (b) (d) A person that relocates a trade or business from 
        outside a job opportunity building zone into a zone is not a 
        qualified business, unless the business meets all of the 
        requirements of paragraphs (b) and (c) and: 
           (1)(i) increases full-time employment in the first full 
        year of operation within the job opportunity building zone by at 
        least a minimum of five jobs or 20 percent, whichever is 
        greater, measured relative to the operations that were relocated 
        and maintains the required level of employment for each year the 
        zone designation applies; or 
           (ii) makes a capital investment in the property located 
        within a zone equivalent to ten percent of the gross revenues of 
        operation that were relocated in the immediately preceding 
        taxable year; and 
           (2) enters a binding written agreement with the 
        commissioner that: 
           (i) pledges the business will meet the requirements of 
        clause (1); 
           (ii) provides for repayment of all tax benefits enumerated 
        under section 469.315 to the business under the procedures in 
        section 469.319, if the requirements of clause (1) are not met 
        for the taxable year or for taxes payable during the year in 
        which the requirements were not met; and 
           (iii) contains any other terms the commissioner determines 
        appropriate. 
           (e) The commissioner may waive the requirements under 
        paragraph (d), clause (1), if the commissioner determines that 
        the qualified business will substantially achieve the factors 
        under this subdivision. 
           (f) A business is not a qualified business if, at its 
        location or locations in the zone, the business is primarily 
        engaged in making retail sales to purchasers who are physically 
        present at the business's zone location. 
           (g) A qualifying business must pay each employee 
        compensation, including benefits not mandated by law, that on an 
        annualized basis is equal to at least 110 percent of the federal 
        poverty level for a family of four. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment and applies to any business entering a 
        business subsidy agreement for a job opportunity development 
        zone after that date, except that paragraph (b) is effective 
        retroactively from June 9, 2003. 
           Sec. 108.  Minnesota Statutes 2004, section 469.319, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REPAYMENT OBLIGATION.] A business must 
        repay the amount of the total tax reduction listed in section 
        469.315 and any refund under section 469.318 in excess of tax 
        liability, received during the two years immediately before it 
        ceased to operate in the zone, if the business: 
           (1) received tax reductions authorized by section 469.315; 
        and 
           (2)(i) did not meet the goals specified in an agreement 
        entered into with the applicant that states any obligation the 
        qualified business must fulfill in order to be eligible for tax 
        benefits.  The commissioner of employment and economic 
        development may extend for up to one year the period for meeting 
        any goals provided in an agreement.  The applicant may extend 
        the period for meeting other goals by documenting in writing the 
        reason for the extension and attaching a copy of the document to 
        its next annual report to the commissioner of employment and 
        economic development; or 
           (ii) ceased to operate its facility located within the job 
        opportunity building zone or otherwise ceases to be or is not a 
        qualified business. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 109.  Minnesota Statutes 2004, section 469.319, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [RECONCILIATION.] Where this section is 
        inconsistent with section 116J.994, subdivision 3, paragraph 
        (e), or 6, or any other provisions of sections 116J.993 to 
        116J.995, this section prevails. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 110.  Minnesota Statutes 2004, section 469.320, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REMEDIES.] If the commissioner determines, based 
        on a report filed under subdivision 1 or other available 
        information, that a zone or subzone is failing to meet its 
        performance goals, the commissioner may take any actions the 
        commissioner determines appropriate, including modification of 
        the boundaries of the zone or a subzone or termination of the 
        zone or a subzone.  Before taking any action, the commissioner 
        shall consult with the applicant and the affected local 
        government units, including notifying them of the proposed 
        actions to be taken.  The commissioner shall publish any order 
        modifying a zone in the State Register and on the Internet.  The 
        applicant may appeal the commissioner's order under the 
        contested case procedures of chapter 14. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 111.  Minnesota Statutes 2004, section 469.330, 
        subdivision 11, is amended to read: 
           Subd. 11.  [QUALIFIED BUSINESS.] (a) "Qualified business" 
        means a person carrying on a trade or business at a 
        biotechnology and health sciences industry facility located 
        within a biotechnology and health sciences industry zone.  A 
        person is a qualified business only on those parcels of land for 
        which it has entered into a business subsidy agreement, as 
        required under section 469.333, with the appropriate local 
        government unit in which the parcels are located. 
           (b) A person that relocates a biotechnology and health 
        sciences industry facility from outside a biotechnology and 
        health sciences industry zone into a zone is not a qualified 
        business, unless the business: 
           (1)(i) increases full-time employment in the first full 
        year of operation within the biotechnology and health sciences 
        industry zone by at least 20 percent measured relative to the 
        operations that were relocated and maintains the required level 
        of employment for each year the zone designation applies; or 
           (ii) makes a capital investment in the property located 
        within a zone equivalent to ten percent of the gross revenues of 
        operation that were relocated in the immediately preceding 
        taxable year; and 
           (2) enters a binding written agreement with the 
        commissioner that: 
           (i) pledges the business will meet the requirements of 
        clause (1); 
           (ii) provides for repayment of all tax benefits enumerated 
        under section 469.336 to the business under the procedures in 
        section 469.340, if the requirements of clause (1) are not met; 
        and 
           (iii) contains any other terms the commissioner determines 
        appropriate. 
           [EFFECTIVE DATE.] This section is effective retroactively 
        from June 9, 2003. 
           Sec. 112.  Minnesota Statutes 2004, section 469.340, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REPAYMENT OBLIGATION.] A business must 
        repay the amount of the tax reduction listed in section 469.336 
        and any refunds under sections 469.338 and 469.339 in excess of 
        tax liability, received during the two years immediately before 
        it ceased to operate in the zone, if the business: 
           (1) received tax reductions authorized by section 469.336; 
        and 
           (2)(i) did not meet the goals specified in an agreement 
        entered into with the applicant that states any obligation the 
        qualified business must fulfill in order to be eligible for tax 
        benefits.  The commissioner of employment and economic 
        development may extend for up to one year the period for meeting 
        any goals provided in an agreement.  The applicant may extend 
        the period for meeting other goals by documenting in writing the 
        reason for the extension and attaching a copy of the document to 
        its next annual report to the commissioner of employment and 
        economic development; or 
           (ii) ceased to operate its facility located within the 
        biotechnology and health sciences industry zone or otherwise 
        ceases to be or is not a qualified business. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 113.  Minnesota Statutes 2004, section 471.999, is 
        amended to read: 
           471.999 [REPORT TO LEGISLATURE.] 
           The commissioner of employee relations shall report to the 
        legislature by January 1 of each year on the status of 
        compliance with section 471.992, subdivision 1, by governmental 
        subdivisions. 
           The report must include a list of the political 
        subdivisions in compliance with section 471.992, subdivision 1, 
        and the estimated cost of compliance.  The report must also 
        include a list of political subdivisions found by the 
        commissioner to be not in compliance, the basis for that 
        finding, recommended changes to achieve compliance, estimated 
        cost of compliance, and recommended penalties, if any.  The 
        commissioner's report must include a list of subdivisions that 
        did not comply with the reporting requirements of this section.  
        The commissioner may request, and a subdivision shall provide, 
        any additional information needed for the preparation of a 
        report under this subdivision. 
           Notwithstanding any rule to the contrary, beginning in 
        2005, a political subdivision must report on its compliance with 
        the requirements of sections 471.991 to 471.999 no more 
        frequently than once every five three years.  No report from a 
        political subdivision is required for 2003 and 2004. 
           Sec. 114.  Minnesota Statutes 2004, section 517.08, 
        subdivision 1b, is amended to read: 
           Subd. 1b.  [TERM OF LICENSE; FEE; PREMARITAL EDUCATION.] 
        (a) The local registrar shall examine upon oath the party 
        applying for a license relative to the legality of the 
        contemplated marriage.  If at the expiration of a five-day 
        period, on being satisfied that there is no legal impediment to 
        it, including the restriction contained in section 259.13, the 
        local registrar shall issue the license, containing the full 
        names of the parties before and after marriage, and county and 
        state of residence, with the county seal attached, and make a 
        record of the date of issuance.  The license shall be valid for 
        a period of six months.  In case of emergency or extraordinary 
        circumstances, a judge of the district court of the county in 
        which the application is made, may authorize the license to be 
        issued at any time before the expiration of the five days.  
        Except as provided in paragraph (b), the local registrar shall 
        collect from the applicant a fee of $85 $100 for administering 
        the oath, issuing, recording, and filing all papers required, 
        and preparing and transmitting to the state registrar of vital 
        statistics the reports of marriage required by this section.  If 
        the license should not be used within the period of six months 
        due to illness or other extenuating circumstances, it may be 
        surrendered to the local registrar for cancellation, and in that 
        case a new license shall issue upon request of the parties of 
        the original license without fee.  A local registrar who 
        knowingly issues or signs a marriage license in any manner other 
        than as provided in this section shall pay to the parties 
        aggrieved an amount not to exceed $1,000. 
           (b) The marriage license fee for parties who have completed 
        at least 12 hours of premarital education is $20 $30.  In order 
        to qualify for the reduced fee, the parties must submit a signed 
        and dated statement from the person who provided the premarital 
        education confirming that it was received.  The premarital 
        education must be provided by a licensed or ordained minister or 
        the minister's designee, a person authorized to solemnize 
        marriages under section 517.18, or a person authorized to 
        practice marriage and family therapy under section 148B.33.  The 
        education must include the use of a premarital inventory and the 
        teaching of communication and conflict management skills.  
           (c) The statement from the person who provided the 
        premarital education under paragraph (b) must be in the 
        following form:  
           "I, (name of educator), confirm that (names of both 
        parties) received at least 12 hours of premarital education that 
        included the use of a premarital inventory and the teaching of 
        communication and conflict management skills.  I am a licensed 
        or ordained minister, a person authorized to solemnize marriages 
        under Minnesota Statutes, section 517.18, or a person licensed 
        to practice marriage and family therapy under Minnesota 
        Statutes, section 148B.33." 
           The names of the parties in the educator's statement must 
        be identical to the legal names of the parties as they appear in 
        the marriage license application.  Notwithstanding section 
        138.17, the educator's statement must be retained for seven 
        years, after which time it may be destroyed.  
           (d) If section 259.13 applies to the request for a marriage 
        license, the local registrar shall grant the marriage license 
        without the requested name change.  Alternatively, the local 
        registrar may delay the granting of the marriage license until 
        the party with the conviction: 
           (1) certifies under oath that 30 days have passed since 
        service of the notice for a name change upon the prosecuting 
        authority and, if applicable, the attorney general and no 
        objection has been filed under section 259.13; or 
           (2) provides a certified copy of the court order granting 
        it.  The parties seeking the marriage license shall have the 
        right to choose to have the license granted without the name 
        change or to delay its granting pending further action on the 
        name change request. 
           Sec. 115.  Minnesota Statutes 2004, section 517.08, 
        subdivision 1c, is amended to read: 
           Subd. 1c.  [DISPOSITION OF LICENSE FEE.] (a) Of the 
        marriage license fee collected pursuant to subdivision 1b, 
        paragraph (a), $15 must be retained by the county.  The local 
        registrar must pay $70 $85 to the commissioner of finance to be 
        deposited as follows: 
           (1) $50 in the general fund; 
           (2) $3 in the special revenue fund to be appropriated to 
        the commissioner of education for parenting time centers under 
        section 119A.37; 
           (3) $2 in the special revenue fund to be appropriated to 
        the commissioner of health for developing and implementing the 
        MN ENABL program under section 145.9255; 
           (4) $10 $25 in the special revenue fund to be is 
        appropriated to the commissioner of employment and economic 
        development for the displaced homemaker program under section 
        116L.96; and 
           (5) $5 in the special revenue fund to be is appropriated to 
        the commissioner of human services for the Minnesota Healthy 
        Marriage and Responsible Fatherhood Initiative under section 
        256.742. 
           (b) Of the $20 $30 fee under subdivision 1b, paragraph (b), 
        $15 must be retained by the county.  The local registrar must 
        pay $5 $15 to the commissioner of finance to be distributed 
        deposited as follows: 
           (1) $5 as provided in paragraph (a), clauses (2) and (3); 
        and 
           (2) $10 in the special revenue fund is appropriated to the 
        commissioner of employment and economic development for the 
        displaced homemaker program under section 116L.96. 
           (c) The increase in the marriage license fee under 
        paragraph (a) provided for in Laws 2004, chapter 273, and 
        disbursement of the increase in that fee to the special fund for 
        the Minnesota Healthy Marriage and Responsible Fatherhood 
        Initiative under paragraph (a), clause (5), is contingent upon 
        the receipt of federal funding under United States Code, title 
        42, section 1315, for purposes of the initiative. 
           Sec. 116.  Minnesota Statutes 2004, section 609.849, as 
        added by Laws 2005, chapter 136, article 17, section 50, is 
        amended to read: 
           609.849 [RAILROAD THAT OBSTRUCTS TREATMENT OF AN INJURED 
        WORKER.] 
           (a) It shall be unlawful for a railroad or person employed 
        by a railroad negligently or to intentionally to: 
           (1) deny, delay, or interfere with medical treatment or 
        first aid treatment to an employee of a railroad who has been 
        injured during employment; or 
           (2) discipline, harass, or intimidate an employee to 
        discourage the employee from receiving medical attention or 
        threaten to discipline an employee who has been injured during 
        employment for requesting medical treatment or first aid 
        treatment. 
           (b) Nothing in this section shall deny a railroad company 
        or railroad employee from making a reasonable inquiry of an 
        injured employee about the circumstance of an injury in order to 
        gather information necessary to identify a safety hazard. 
           (c) It is not a violation under this section for a railroad 
        company or railroad employee to enforce safety regulations. 
           (d) A railroad or a person convicted of a violation of 
        paragraph (a), clause (1) or (2), is guilty of a gross 
        misdemeanor and may be sentenced to imprisonment for not more 
        than one year or to payment of a fine of fined not more than 
        $3,000, or both $1,000 but is not subject to an incarcerative 
        sanction. 
           [EFFECTIVE DATE.] This section is effective August 1, 2005, 
        and applies to crimes committed on or after that date. 
           Sec. 117.  Laws 1999, chapter 224, section 7, as amended by 
        Laws 2004, chapter 261, article 6, section 3, is amended to read:
           Sec. 7.  [SUNSET.] 
           Sections 2 and 4 expire on August 1, 2005 2006, and 
        Minnesota Statutes 1998, sections 237.63, 237.65, and 237.68, 
        expire on December 31, 2004.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment.  
           Sec. 118.  Laws 2003, chapter 128, article 1, section 172, 
        is amended to read: 
           Sec. 172.  [TEMPORARY PETROFUND FEE EXEMPTION FOR MINNESOTA 
        COMMERCIAL AIRLINES.] 
           (a) A commercial airline providing regularly scheduled jet 
        service and with its corporate headquarters in Minnesota is 
        exempt from the fee established in Minnesota Statutes, section 
        115C.08, subdivision 3, until July 1, 2005 2007, provided the 
        airline develops a plan approved by the commissioner of commerce 
        demonstrating that the savings from this exemption will go 
        towards minimizing job losses in Minnesota, and to support the 
        airline's efforts to avoid filing for federal bankruptcy 
        protections. 
           (b) A commercial airline exempted from the fee is 
        ineligible to receive reimbursement under Minnesota Statutes, 
        chapter 115C, until July 1, 2005 2007.  A commercial airline 
        that has a release during the fee exemption period is ineligible 
        to receive reimbursement under Minnesota Statutes, chapter 115C, 
        for the costs incurred in response to that release. 
           Sec. 119.  Laws 2005, chapter 97, article 13, section 1, 
        subdivision 3, is amended to read:  
           Subd. 3.  [HYDROGEN.] "Hydrogen" means hydrogen produced 
        using native renewable energy sources. 
           Sec. 120.  Laws 2005, chapter 97, article 13, section 2, 
        subdivision 1, is amended to read:  
           Subdivision 1.  [EARLY PURCHASE AND DEPLOYMENT OF HYDROGEN, 
        FUEL CELLS, AND RELATED TECHNOLOGIES BY THE STATE.] The 
        Department of Commerce in conjunction with the Department of 
        Administration shall identify opportunities for demonstrating 
        the use of hydrogen, fuel cells and related technologies within 
        state-owned facilities, vehicle fleets, and operations.  
           The Department of Commerce shall recommend to the 
        Department of Administration, when feasible, the purchase and 
        demonstrate demonstration of hydrogen, fuel cells, and related 
        technologies in ways that strategically contribute to realizing 
        Minnesota's hydrogen economy goal as set forth in section 
        216B.013, and which contribute to the following nonexclusive 
        list of objectives:  
           (1) provide needed performance data to the marketplace; 
           (2) identify code and regulatory issues to be resolved; 
           (3) advance or validate a critical area of research; 
           (4) foster economic development and job creation in the 
        state; 
           (5) (4) raise public awareness of hydrogen, fuel cells, and 
        related technologies; or 
           (6) (5) reduce emissions of carbon dioxide and other 
        pollutants.  
           [EFFECTIVE DATE.] This section is effective on the same 
        date that Laws 2005, chapter 97, article 13, section 2, 
        subdivision 1, is effective. 
           Sec. 121.  [SESQUICENTENNIAL COMMISSION.] 
           Subdivision 1.  [COMMISSION; PURPOSE.] The Minnesota 
        Sesquicentennial Commission is established to plan for 
        activities relating to Minnesota's 150th anniversary of 
        statehood.  The commission shall create a plan for capital 
        improvements, celebratory activities, and public engagement in 
        every county in the state of Minnesota. 
           Subd. 2.  [MEMBERSHIP.] The commission shall consist of 17 
        members who shall serve until the completion of the 
        sesquicentennial year of statehood, appointed as follows: 
           (1) nine members appointed by the governor, representing 
        major corporate, nonprofit, and public sectors of the state, 
        selected from all parts of the state; 
           (2) two members appointed by the speaker of the house of 
        representatives; 
           (3) two members appointed by the minority leader of the 
        house of representatives; 
           (4) two members from the majority party in the senate, 
        appointed by the Subcommittee on Committees; and 
           (5) two members from the minority party in the senate, 
        appointed by the Subcommittee on Committees. 
           Subd. 3.  [COMPENSATION; OPERATION.] Members shall select a 
        chair from the membership of the commission.  The chair shall 
        convene all meetings and set the agenda for the commission.  The 
        Minnesota Historical Society shall provide office space and 
        staff support for the commission, and shall cooperate with the 
        University of Minnesota and Minnesota State Colleges and 
        Universities to support the programs of the commission.  
        Meetings shall be at the call of the chair.  The commission may 
        appoint an advisory council to advise and assist the commission 
        with its duties.  Members shall receive no compensation for 
        service on the Sesquicentennial Commission.  Members appointed 
        by the governor may be reimbursed for expenses under Minnesota 
        Statutes, section 15.059, subdivision 3. 
           Subd. 4.  [DUTIES.] The commission shall have the following 
        duties: 
           (1) to present to the governor and legislature a plan for 
        capital grants to pay for capital improvements on Minnesota's 
        historic public and private buildings, to be known as 
        sesquicentennial grants; 
           (2) to seek funding for activities to celebrate the 150th 
        anniversary of statehood, and to form partnerships with private 
        parties to further this mission; and 
           (3) to present an annual report to the governor and 
        legislature outlining progress made towards the celebration of 
        the sesquicentennial. 
           Subd. 5.  [COMMEMORATIVE COIN.] The commission may arrange 
        for design, production, distribution, marketing, and sale of a 
        commemorative coin.  Proceeds from sale of the commemorative 
        coin are appropriated to the commission. 
           Subd. 6.  [EXPIRATION.] The commission shall continue to 
        operate until January 30, 2009, at which time it shall expire. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 122.  [SURPLUS STATE LAND; REDWOOD COUNTY.] 
           Notwithstanding Minnesota Statutes, section 645.021, 
        subdivision 3, the local approval requirement in Laws 2004, 
        chapter 262, article 3, section 26, is revived and 
        available until January 2, 2007. 
           Sec. 123.  [INSTRUCTION TO REVISOR.] 
           The revisor of statutes shall renumber Minnesota Statutes, 
        section 239.05, as section 239.051, alphabetize the definitions, 
        and correct any cross-references to that section accordingly. 
           Sec. 124.  [REPEALER.] 
           (a) Minnesota Statutes 2004, sections 45.0295; 116J.573; 
        116J.58, subdivision 3; 116L.05, subdivision 4; 178.12; 239.05, 
        subdivisions 6a and 6b; and 462C.15, are repealed. 
           (b) Laws 1999, chapter 125, section 4, as amended by Laws 
        2002, chapter 398, section 7, is repealed. 

                                   ARTICLE 5 
                        REGULATION OF SERVICE CONTRACTS 
           Section 1.  [59B.01] [SCOPE AND PURPOSE.] 
           (a) The purpose of this chapter is to create a legal 
        framework within which service contracts may be sold in this 
        state. 
           (b) The following are exempt from this chapter: 
           (1) warranties; 
           (2) maintenance agreements; 
           (3) warranties, service contracts, or maintenance 
        agreements offered by public utilities, as defined in section 
        216B.02, subdivision 4, or an entity or operating unit owned by 
        or under common control with a public utility; 
           (4) service contracts sold or offered for sale to persons 
        other than consumers; 
           (5) service contracts on tangible property where the 
        tangible property for which the service contract is sold has a 
        purchase price of $250 or less, exclusive of sales tax; 
           (6) motor vehicle service contracts as defined in section 
        65B.29, subdivision 1, paragraph (1); 
           (7) service contracts for home security equipment installed 
        by a licensed technology systems contractor; and 
           (8) motor club membership contracts that typically provide 
        roadside assistance services to motorists stranded for reasons 
        that include, but are not limited to, mechanical breakdown or 
        adverse road conditions.  
           (c) The types of agreements referred to in paragraph (b) 
        are not subject to chapters 60A to 79A, except as otherwise 
        specifically provided by law. 
           Sec. 2.  [59B.02] [DEFINITIONS.] 
           Subdivision 1.  [TERMS.] For the purposes of this chapter, 
        the terms defined in this section have the meanings given them. 
           Subd. 2.  [ADMINISTRATOR.] "Administrator" means the person 
        who is responsible for the administration of the service 
        contracts or the service contracts plan or who is responsible 
        for any filings required by this chapter.  
           Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
        commissioner of commerce. 
           Subd. 4.  [CONSUMER.] "Consumer" means a natural person who 
        buys, other than for purposes of resale, any tangible personal 
        property that is distributed in commerce and that is normally 
        used for personal, family, or household purposes and not for 
        business or research purposes. 
           Subd. 5.  [MAINTENANCE AGREEMENT.] "Maintenance agreement" 
        means a contract of limited duration that provides for scheduled 
        maintenance only. 
           Subd. 6.  [PERSON.] "Person" means an individual, 
        partnership, corporation, incorporated or unincorporated 
        association, joint stock company, reciprocal, syndicate, or any 
        similar entity or combination of entities acting in concert. 
           Subd. 7.  [PREMIUM.] "Premium" means the consideration paid 
        to an insurer for a reimbursement insurance policy. 
           Subd. 8.  [PROVIDER.] "Provider" means a person who is 
        contractually obligated to the service contract holder under the 
        terms of the service contract. 
           Subd. 9.  [PROVIDER FEE.] "Provider fee" means the 
        consideration paid for a service contract. 
           Subd. 10.  [REIMBURSEMENT INSURANCE POLICY.] "Reimbursement 
        insurance policy" means a policy of insurance issued to a 
        provider to either provide reimbursement to the provider under 
        the terms of the insured service contracts issued or sold by the 
        provider or, in the event of the provider's nonperformance, to 
        pay on behalf of the provider all covered contractual 
        obligations incurred by the provider under the terms of the 
        insured service contracts issued or sold by the provider. 
           Subd. 11.  [SERVICE CONTRACT.] "Service contract" means a 
        contract or agreement for a separately stated consideration for 
        a specific duration to perform the repair, replacement, or 
        maintenance of property or indemnification for repair, 
        replacement, or maintenance, for the operational or structural 
        failure due to a defect in materials, workmanship, or normal 
        wear and tear, with or without additional provisions for 
        incidental payment of indemnity under limited circumstances. 
        Service contracts may provide for the repair, replacement, or 
        maintenance of property for damage resulting from power surges 
        and accidental damage from handling. 
           Subd. 12.  [SERVICE CONTRACT HOLDER OR CONTRACT 
        HOLDER.] "Service contract holder" or "contract holder" means a 
        person who is the purchaser or holder of a service contract. 
           Subd. 13.  [WARRANTY.] "Warranty" means a warranty made 
        solely by the manufacturer, importer, or seller of property or 
        services without consideration, that is not negotiated or 
        separated from the sale of the product, and is incidental to the 
        sale of the product, that guarantees indemnity for defective 
        parts, mechanical or electrical breakdown, labor, or other 
        remedial measures, such as repair or replacement of the property 
        or repetition of services. 
           Sec. 3.  [59B.03] [REQUIREMENTS FOR TRANSACTING BUSINESS.] 
           Subdivision 1.  [APPOINTMENT OF ADMINISTRATOR.] A provider 
        may, but is not required to, appoint an administrator or other 
        designee to be responsible for any or all of the administration 
        of service contracts and compliance with this chapter. 
           Subd. 2.  [CONTRACT COPIES AND RECEIPTS.] Service contracts 
        must not be issued, sold, or offered for sale in this state 
        unless the provider has: 
           (1) provided a receipt for, or other written evidence of, 
        the purchase of the service contract to the contract holder; 
           (2) provided a copy of the service contract to the service 
        contract holder within a reasonable period of time from the date 
        of purchase; and 
           (3) complied with this chapter. 
           Subd. 3.  [REGISTRATION.] Each provider of service 
        contracts sold in this state shall file a registration with the 
        commissioner on a form prescribed by the commissioner.  Each 
        provider shall pay to the commissioner a fee in the amount of 
        $750 annually. 
           Subd. 4.  [FINANCIAL REQUIREMENTS.] In order to ensure the 
        faithful performance of a provider's obligations to its contract 
        holders, each provider is responsible for complying with the 
        requirements of one of the following: 
           (1) insure all service contracts under a reimbursement 
        insurance policy issued by an insurer authorized to transact 
        insurance in this state, a risk retention group, as that term is 
        defined in United States Code, title 15, section 3901(A)(4), as 
        long as that risk retention group is registered pursuant to 
        section 60E.03 or 60E.04 as applicable, and is in full 
        compliance with the federal Liability Risk Retention Act of 
        1986, United States Code, title 15, section 3901, et al., or 
        issued pursuant to sections 60A.195 to 60A.209, and either: 
           (i) the insurer or risk retention group shall, at the time 
        the policy is filed with the commissioner, and continuously 
        thereafter, maintain surplus as to policyholders and paid-in 
        capital of at least $15,000,000, and annually file audited 
        financial statements with the commissioner; or 
           (ii) the commissioner may authorize an insurer or risk 
        retention group that has surplus as to policyholders and paid-in 
        capital of less than $15,000,000 but at least equal to 
        $10,000,000 to issue the insurance required by this section if 
        the insurer or risk retention group demonstrates to the 
        satisfaction of the commissioner that the company maintains a 
        ratio of direct written premiums, wherever written, to surplus 
        as to policyholders and paid-in capital of not greater than 
        3-to-1; or 
           (2)(i) maintain a funded reserve account for obligations 
        under contracts issued and outstanding in this state.  The 
        reserves must not be less than 40 percent of gross consideration 
        received, less claims paid, on the sale of the service contract 
        for all in-force contracts.  The reserve account is subject to 
        examination and review by the commissioner; and 
           (ii) place in trust with the commissioner a financial 
        security deposit, having a value of not less than five percent 
        of the gross consideration received, less claims paid, on the 
        sale of the service contract for all service contracts issued 
        and in force, but not less than $25,000, consisting of one of 
        the following: 
           (A) a surety bond issued by an authorized surety; 
           (B) securities of the type eligible for deposit by 
        authorized insurers in this state; 
           (C) cash; 
           (D) a letter of credit issued by a qualified financial 
        institution containing an evergreen clause which prevents the 
        expiration of the letter without due notice from the issuer; or 
           (E) another form of security prescribed by rules of the 
        commissioner; or 
           (3)(i) maintain, or its parent company maintain, a net 
        worth or stockholders' equity of $100,000,000; and 
           (ii) upon request, provide the commissioner with a copy of 
        the provider's or the provider's parent company's most recent 
        Form 10-K or Form 20-F filed with the Securities and Exchange 
        Commission (SEC) within the last calendar year, or if the 
        company does not file with the SEC, a copy of the company's 
        audited financial statements, which shows a net worth of the 
        provider or its parent company of at least $100,000,000.  If the 
        provider's parent company's Form 10-K, Form 20-F, or audited 
        financial statements are filed to meet the provider's financial 
        stability requirement, then the parent company shall agree to 
        guarantee the obligations of the provider relating to service 
        contracts sold by the provider in this state. 
           Subd. 5.  [RIGHT OF RETURN.] Service contracts must require 
        the provider to permit the service contract holder to return the 
        service contract within 20 days of the date the service contract 
        was mailed to the service contract holder or within ten days of 
        delivery if the service contract is delivered to the service 
        contract holder at the time of sale or within a longer time 
        period permitted under the service contract.  Upon return of the 
        service contract to the provider within the applicable time 
        period, if no claim has been made under the service contract 
        before its return to the provider, the service contract is void 
        and the provider shall refund to the service contract holder, or 
        credit the account of the service contract holder, with the full 
        purchase price of the service contract.  The right to void the 
        service contract provided in this paragraph is not transferable 
        and applies only to the original service contract purchaser, and 
        only if no claim has been made before its return to the 
        provider.  A ten percent penalty per month must be added to a 
        refund that is not paid or credited within 45 days after return 
        of the service contract to the provider. 
           Subd. 6.  [PREMIUM TAXES.] (a) Provider fees collected on 
        service contracts are not subject to premium taxes. 
           (b) Premiums for reimbursement insurance policies are 
        subject to applicable taxes. 
           Subd. 7.  [LICENSING EXEMPTION.] Except for the 
        registration requirements in subdivision 3, providers and 
        related service contract sellers, administrators, and other 
        persons marketing, selling, or offering to sell service 
        contracts are exempt from any licensing requirements of this 
        state. 
           Subd. 8.  [INSURANCE EXEMPTION.] The marketing, sale, 
        offering for sale, issuance, making, proposing to make, and 
        administration of service contracts by providers and related 
        service contract sellers, administrators, and other persons are 
        exempt from all other provisions of the insurance laws of this 
        state, except as provided in section 72A.20, subdivision 38. 
           Sec. 4.  [59B.04] [REQUIRED DISCLOSURES; REIMBURSEMENT 
        INSURANCE POLICY.] 
           Subdivision 1.  [RIGHT TO PAYMENT OR 
        REIMBURSEMENT.] Reimbursement insurance policies insuring 
        service contracts issued, sold, or offered for sale in this 
        state shall state that the insurer that issued the reimbursement 
        insurance policy shall either reimburse or pay on behalf of the 
        provider any covered sums the provider is legally obligated to 
        pay or, in the event of the provider's nonperformance, shall 
        provide the service which the provider is legally obligated to 
        perform according to the provider's contractual obligations 
        under the service contracts issued or sold by the provider. 
           Subd. 2.  [RIGHT TO APPLY TO COMPANY.] In the event covered 
        service is not provided by the service contract provider within 
        60 days of proof of loss by the service contract holder, the 
        contract holder is entitled to apply directly to the 
        reimbursement insurance company. 
           Sec. 5.  [59B.05] [REQUIRED DISCLOSURE; SERVICE CONTRACTS.] 
           Subdivision 1.  [READABILITY AND GENERAL 
        DISCLOSURE.] Service contracts marketed, sold, offered for sale, 
        issued, made, proposed to be made, or administered in this state 
        must be written, printed, or typed in clear, understandable 
        language that is easy to read and must disclose the requirements 
        set forth in this section, as applicable. 
           Subd. 2.  [IDENTITIES OF PARTIES.] Service contracts must 
        state the name and address of the provider, and must identify 
        any administrator if different from the provider, the service 
        contract seller, and the service contract holder to the extent 
        that the name of the service contract holder has been furnished 
        by the service contract holder.  The identities of the parties 
        are not required to be preprinted on the service contract and 
        may be added to the service contract at the time of sale. 
           Subd. 3.  [TOTAL PURCHASE PRICE AND SALES TERMS.] Service 
        contracts must state the total purchase price and the terms 
        under which the service contract is sold.  The purchase price is 
        not required to be preprinted on the service contract and may be 
        negotiated at the time of sale with the service contract holder. 
           Subd. 4.  [DEDUCTIBLES.] Service contracts must state the 
        existence of any deductible amount, if applicable. 
           Subd. 5.  [COVERAGES, LIMITATIONS, AND EXCLUSIONS.] No 
        particular causes of loss or property are required to be 
        covered, but service contracts must specify the merchandise and 
        services to be provided and, with equal prominence, any 
        limitations, exceptions, or exclusions including, but not 
        limited to, any damage or breakdown not covered by the service 
        contract.  
           Subd. 6.  [RESTRICTIONS ON TRANSFERABILITY.] Service 
        contracts must state any restrictions governing the 
        transferability of the service contract, if applicable. 
           Subd. 7.  [CANCELLATION TERMS.] Service contracts must 
        state the terms, restrictions, or conditions governing 
        cancellation of the service contract prior to the termination or 
        expiration date of the service contract by either the provider 
        or the service contract holder.  The provider of the service 
        contract shall mail a written notice to the contract holder at 
        the last known address of the service contract holder contained 
        in the records of the provider at least 15 days before 
        cancellation by the provider.  Five days' notice is required if 
        the reason for cancellation is nonpayment of the provider fee, a 
        material misrepresentation by the service contract holder to the 
        provider, or a substantial breach of duties by the service 
        contract holder relating to the covered product or its use.  The 
        notice must state the effective date of the cancellation and the 
        reason for the cancellation. 
           Subd. 8.  [DUTIES OF CONTRACT HOLDER.] Service contracts 
        must set forth all of the obligations and duties of the service 
        contract holder, such as the duty to protect against any further 
        damage and any requirement to follow the owner's manual. 
           Subd. 9.  [EXCLUSIONS; CONSEQUENTIAL DAMAGES AND 
        PREEXISTING CONDITIONS.] Service contracts may exclude coverage 
        for consequential damages or preexisting conditions.  These 
        exclusions, if applicable, must be stated in the contract. 
           Sec. 6.  [59B.06] [ADDITIONAL REQUIRED DISCLOSURE; SERVICE 
        CONTRACTS.] 
           Subdivision 1.  [INSURANCE DISCLOSURE.] Service contracts 
        insured under a reimbursement insurance policy pursuant to 
        section 59B.03, subdivision 4, clause (1), must contain a 
        statement in substantially the following form:  "Obligations of 
        the provider under this service contract are insured under a 
        service contract reimbursement insurance policy."  The service 
        contract must also state the name and address of the insurer. 
           Subd. 2.  [DISCLOSURE OF NO INSURANCE.] Service contracts 
        not insured under a reimbursement insurance policy pursuant to 
        section 59B.03, subdivision 4, clause (1), must contain a 
        statement in substantially the following form:  "Obligations of 
        the provider under this service contract are backed by the full 
        faith and credit of the provider." 
           Sec. 7.  [59B.07] [PROHIBITED ACTS.] 
           Subdivision 1.  [DECEPTIVE NAMES.] A provider shall not use 
        in its name the words insurance, casualty, surety, mutual, or 
        any other words descriptive of the insurance, casualty, or 
        surety business; or a name deceptively similar to the name or 
        description of any insurance or surety corporation, or to the 
        name of any other provider.  The word "guaranty" or similar word 
        may be used by a provider.  This section does not apply to a 
        company that was using any of the prohibited language in its 
        name before the effective date of this chapter.  However, a 
        company using the prohibited language in its name shall include 
        in its service contracts a statement in substantially the 
        following form:  "This agreement is not an insurance contract." 
           Subd. 2.  [FALSE OR MISLEADING STATEMENTS.] A provider or 
        its representative shall not in its service contracts, 
        literature, or otherwise make, permit, or cause to be made any 
        false or misleading statement or omit any material statement 
        that would be considered misleading if omitted. 
           Subd. 3.  [REQUIRED PURCHASE.] A person, such as a bank, 
        savings association, lending institution, manufacturer, or 
        seller of any product shall not require the purchase of a 
        service contract as a condition of a loan or a condition for the 
        sale of any property. 
           Sec. 8.  [59B.08] [RECORD-KEEPING REQUIREMENTS.] 
           Subdivision 1.  [GENERALLY.] The provider shall keep 
        accurate accounts, books, and records concerning transactions 
        regulated under this chapter. 
           The provider's accounts, books, and records include the 
        following: 
           (1) copies of each type of service contracts sold; 
           (2) the name and address of each service contract holder to 
        the extent that the name and address have been furnished by the 
        service contract holder; 
           (3) a list of the locations where service contracts are 
        marketed, sold, or offered for sale; and 
           (4) written claims files which shall contain information 
        regarding the services provided or claims payments for contracts 
        that provide for payments or reimbursement, including at least 
        the dates and description of claims related to the service 
        contracts. 
           Subd. 2.  [RETENTION.] (a) Except as provided in paragraph 
        (b), the provider shall retain all records required to be 
        maintained by this section for at least three years after the 
        specified period of coverage has expired. 
           (b) A provider discontinuing business in this state shall 
        maintain its records until it furnishes the commissioner 
        satisfactory proof that it has discharged all obligations to 
        contract holders in this state. 
           Subd. 3.  [MEDIUM.] The records required by this chapter 
        may be, but are not required to be, maintained on a computer 
        disk or other record-keeping technology.  If the records are 
        maintained in other than hard copy, the records must be capable 
        of duplication to legible hard copy at the request of the 
        commissioner. 
           Sec. 9.  [59B.09] [TERMINATION OF REIMBURSEMENT INSURANCE 
        POLICY.] 
           An insurer that issued a reimbursement insurance policy may 
        not terminate the policy unless the insurer mails or delivers 
        written notice of the termination to the commissioner at least 
        30 days before the effective date of termination.  The 
        termination of a reimbursement insurance policy does not reduce 
        the issuer's responsibility for service contracts issued by 
        providers before the date of the termination. 
           Sec. 10.  [59B.10] [OBLIGATION OF REIMBURSEMENT INSURANCE 
        POLICY INSURERS.] 
           Insurers issuing reimbursement insurance to providers are 
        deemed to have received the premiums for the insurance upon the 
        payment of provider fees by consumers for service contracts 
        issued by the insured providers. 
           Nothing in this chapter prevents or limits the right of an 
        insurer that issued a reimbursement insurance policy to seek 
        indemnification or subrogation against a provider if the issuer 
        pays or is obligated to pay the service contract holder sums 
        that the provider was obligated to pay pursuant to the 
        provisions of the service contract. 
           Sec. 11.  [59B.11] [SEVERABILITY PROVISION.] 
           If any provision of this chapter or the application of the 
        provision to any person or circumstances are held invalid, the 
        remainder of this chapter and the application of the provision 
        to person or circumstances other than those as to which it is 
        held invalid, must not be affected. 
           Sec. 12.  Minnesota Statutes 2004, section 72A.20, is 
        amended by adding a subdivision to read: 
           Subd. 38.  [UNFAIR CLAIMS SERVICE; SERVICE CONTRACTS.] No 
        person shall, in connection with a service contract regulated 
        under chapter 59B: 
           (1) attempt to settle claims on the basis of an application 
        or any other material document which was altered without notice 
        to, or knowledge or consent of, the service contract holder; 
           (2) make a material misrepresentation to the service 
        contract holder for the purpose and with the intent of effecting 
        settlement of the claims, loss, or damage under the contract on 
        less favorable terms than those provided in, and contemplated 
        by, the contract; or 
           (3) commit or perform with such frequency as to indicate a 
        general business practice any of the following practices: 
           (i) failure to properly investigate claims; 
           (ii) misrepresentation of pertinent facts or contract 
        provisions relating to coverages at issue; 
           (iii) failure to acknowledge and act upon communications 
        within a reasonable time with respect to claims; 
           (iv) denial of claims without conducting reasonable 
        investigations based upon available information; 
           (v) failure to affirm or deny coverage of claims upon 
        written request of the service contract holder within a 
        reasonable time after proof-of-loss statements have been 
        completed; or 
           (vi) failure to timely provide a reasonable explanation to 
        the service contract holder of the basis in the contract in 
        relation to the facts or applicable law for denial of a claim or 
        for the offer of a compromise settlement. 
           Sec. 13.  [EFFECTIVE DATE.] 
           Sections 1 to 12 are effective January 1, 2006, and apply 
        to service contracts issued on or after that date.  A provider 
        transacting business in this state on or before the date of the 
        enactment of this chapter, which submits an application for 
        registration as a provider under Minnesota Statutes, section 
        59B.03, subdivision 3, within 30 days after the commissioner 
        makes the application available, may continue to transact 
        business in this state until final agency action is taken by the 
        commissioner regarding the registration application and all 
        rights to administrative and judicial review related to that 
        final agency action have been exhausted or have expired. 
           Presented to the governor June 30, 2005 
           Signed by the governor June 30, 2005, 9:10 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569