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

CHAPTER 114--H.F.No. 976
An act
relating to state government; appropriating money for environment,
natural resources, and agriculture; modifying and providing for disposition of
certain revenue; modifying pesticide control; providing certain fee exemptions;
establishing agricultural water certification program; modifying Minnesota
Noxious Weed Law; providing for biobased and biofuel products; modifying
certain bond requirements; modifying animal waste technician provisions;
making technical changes; modifying certain permit requirements; providing for
federal law compliance; providing for certain easements; modifying all-terrain
vehicle operating provisions; establishing pollinator habitat program; modifying
snowmobile registration provisions; modifying state trails; modifying State
Timber Act; modifying certain park boundaries and expenditures; modifying
reporting requirements; modifying Petroleum Tank Release Cleanup Act;
providing for silica sand mining model standards and technical assistance;
providing for wastewater laboratory certification; providing for product
stewardship program; providing for discontinuance of Hennepin County Soil and
Water Conservation District; authorizing recreation of Hall's Island; providing
for certain interim ordinance extension or renewal; repealing certain pollution
control rules; modifying certain environmental review; modifying Water Law;
modifying public utilities provisions; providing certain criteria for wastewater
treatment systems; providing for sanitary districts; requiring studies and reports;
requiring rulemaking;amending Minnesota Statutes 2012, sections 13.6435, by
adding a subdivision; 13.7411, subdivision 4; 17.03, subdivision 3; 17.1015;
17.118, subdivision 2; 18.77, subdivisions 3, 4, 10, 12; 18.78, subdivision 3;
18.79, subdivisions 6, 13; 18.82, subdivision 1; 18.91, subdivisions 1, 2; 18B.01,
by adding a subdivision; 18B.07, subdivisions 4, 5, 7; 18B.26, subdivision 3;
18B.305; 18B.316, subdivisions 1, 3, 4, 8, 9; 18B.37, subdivision 4; 18C.111,
subdivision 4; 18C.430; 18C.433, subdivision 1; 31.94; 41A.10, subdivision 2,
by adding a subdivision; 41A.105, subdivisions 1a, 3, 5; 41A.12, subdivision
3, by adding a subdivision; 41B.04, subdivision 9; 41D.01, subdivision 4;
84.027, by adding a subdivision; 84.415, by adding a subdivision; 84.63; 84.82,
subdivision 3, by adding a subdivision; 84.8205, subdivision 1; 84.922, by
adding a subdivision; 84.9256, subdivision 1; 84.928, subdivision 1; 84D.108,
subdivision 2; 85.015, subdivision 13; 85.052, subdivision 6; 85.053, subdivision
8; 85.054, by adding a subdivision; 85.055, subdivisions 1, 2; 85.42; 89.0385;
90.01, subdivisions 4, 5, 6, 8, 11; 90.031, subdivision 4; 90.041, subdivisions
2, 5, 6, 9, by adding subdivisions; 90.045; 90.061, subdivision 8; 90.101,
subdivision 1; 90.121; 90.145; 90.151, subdivisions 1, 2, 3, 4, 6, 7, 8, 9;
90.161; 90.162; 90.171; 90.181, subdivision 2; 90.191, subdivision 1; 90.193;
90.195; 90.201, subdivision 2a; 90.211; 90.221; 90.252, subdivision 1; 90.301,
subdivisions 2, 4; 90.41, subdivision 1; 93.46, by adding a subdivision; 93.481,
subdivision 3; 97A.401, subdivision 3; 103G.265, subdivisions 2, 3; 103G.271,
subdivisions 1, 4; 103G.287, subdivisions 1, 4, 5; 103I.205, subdivision 1;
114D.50, subdivision 4; 115A.1320, subdivision 1; 115B.20, subdivision
6; 115B.28, subdivision 1; 115B.421; 115C.02, subdivision 4; 115C.08,
subdivision 4, by adding a subdivision; 115D.10; 116.48, subdivision 6; 116C.03,
subdivisions 2, 4, 5; 116D.04, by adding a subdivision; 116J.437, subdivision 1;
223.17, by adding a subdivision; 232.22, by adding a subdivision; 239.051, by
adding subdivisions; 239.761, subdivision 3; 239.791, subdivisions 1, 2a, 2b;
239.7911; 275.066; 282.04, subdivision 1; 296A.01, by adding a subdivision;
473.846; 583.215; Laws 2010, chapter 215, article 3, section 3, subdivision 6,
as amended; Laws 2010, chapter 361, article 3, section 7; proposing coding for
new law in Minnesota Statutes, chapters 17; 18; 84; 90; 93; 103G; 115; 115A;
116C; 383B; proposing coding for new law as Minnesota Statutes, chapter 442A;
repealing Minnesota Statutes 2012, sections 18.91, subdivisions 3, 5; 18B.07,
subdivision 6; 90.163; 90.173; 90.41, subdivision 2; 103G.265, subdivision 2a;
115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10; 115.19; 115.20; 115.21; 115.22;
115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29; 115.30; 115.31; 115.32;
115.33; 115.34; 115.35; 115.36; 115.37; 239.791, subdivision 1a; Laws 2011,
First Special Session chapter 2, article 4, section 30; Minnesota Rules, parts
7021.0010, subparts 1, 2, 4, 5; 7021.0020; 7021.0030; 7021.0040; 7021.0050,
subpart 5; 9210.0300; 9210.0310; 9210.0320; 9210.0330; 9210.0340; 9210.0350;
9210.0360; 9210.0370; 9210.0380; 9220.0530, subpart 6.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1
AGRICULTURE APPROPRIATIONS


Section 1. SUMMARY OF APPROPRIATIONS.
The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2014
2015
Total

General
$
39,050,000
$
39,050,000
$
78,100,000

Agricultural
$
1,240,000
$
1,240,000
$
2,480,000

Remediation
$
388,000
$
388,000
$
776,000

Total
$
40,678,000
$
40,678,000
$
81,356,000


Sec. 2. AGRICULTURE APPROPRIATIONS.
The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this act. The appropriations are from the general
fund, or another named fund, and are available for the fiscal years indicated for each
purpose. The figures "2014" and "2015" used in this act mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2014, or June 30, 2015,
respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015.
"The biennium" is fiscal years 2014 and 2015.

APPROPRIATIONS

Available for the Year

Ending June 30

2014
2015


Sec. 3. DEPARTMENT OF AGRICULTURE

Subdivision 1.Total Appropriation
$
33,198,000
$
33,198,000

Appropriations by Fund

2014
2015

General
31,570,000
31,570,000

Remediation
388,000
388,000

Agricultural
1,240,000
1,240,000
The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.Protection Services
12,808,000
12,808,000

Appropriations by Fund

2014
2015

General
11,980,000
11,980,000

Agricultural
440,000
440,000

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.
$25,000 the first year and $25,000 the second
year are for compensation for destroyed or
crippled animals under Minnesota Statutes,
section 3.737. If the amount in the first year
is insufficient, the amount in the second year
is available in the first year.
$75,000 the first year and $75,000 the second
year are for compensation for crop damage
under Minnesota Statutes, section 3.7371. If
the amount in the first year is insufficient, the
amount in the second year is available in the
first year.
If the commissioner determines that claims
made under Minnesota Statutes, section
3.737 or 3.7371, are unusually high, amounts
appropriated for either program may be
transferred to the appropriation for the other
program.
$225,000 the first year and $225,000 the
second year are for an increase in retail food
handler inspections.
$245,000 the first year and $245,000 the
second year are for an increase in the
operating budget for the Laboratory Services
Division.
Notwithstanding Minnesota Statutes, section
18B.05, $90,000 the first year and $90,000
the second year are from the pesticide
regulatory account in the agricultural fund
for an increase in the operating budget for
the Laboratory Services Division.
$100,000 the first year and $100,000 the
second year are from the pesticide regulatory
account in the agricultural fund to monitor
pesticides and pesticide degradates in surface
water and groundwater in areas vulnerable to
surface water impairments and groundwater
degradation and to use data collected to
improve pesticide use practices. This is a
onetime appropriation.
$100,000 the first year and $100,000 the
second year are from the pesticide regulatory
account in the agricultural fund to update
and modify applicator education and training
materials. No later than January 15, 2015, the
commissioner must report to the legislative
committees with jurisdiction over agriculture
finance regarding the agency's progress and a
schedule of activities the commissioner will
accomplish to update and modify additional
materials by December 31, 2017.
Notwithstanding Minnesota Statutes, section
18B.05, $150,000 the first year and $150,000
the second year are from the pesticide
regulatory account in the agricultural fund to:
develop and use best management practices
that protect pollinators by providing habitat
necessary for their survival and reproduction;
incorporate these practices into pesticide
applicator and county agricultural inspector
training; and increase public awareness of
the importance of pollinators and pollinator
habitat. The commissioner may transfer a
portion of this appropriation to the Board of
Regents of the University of Minnesota to
design habitat and measure and report the
outcomes achieved under this paragraph.
This is a onetime appropriation.


Subd. 3.Agricultural Marketing and
Development
3,062,000
3,062,000
$186,000 the first year and $186,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants
for Minnesota grown promotion under
Minnesota Statutes, section 17.102. Grants
may be made for one year. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract
on or before June 30, 2015, for Minnesota
grown grants in this paragraph are available
until June 30, 2017.
$100,000 each year is for a licensed
education professional for the agriculture
in the classroom program to develop and
disseminate curriculum, provide teacher
training opportunities, and work with
schools to enhance agricultural literacy by
incorporating agriculture into classroom
curriculum.
The commissioner may use funds
appropriated in this subdivision for annual
cost-share payments to resident farmers
or entities that sell, process, or package
agricultural products in this state for the costs
of organic certification. Annual cost-share
payments must be 75 percent of the cost of the
certification or $750, whichever is less. The
commissioner may allocate these funds for
organic market and program development,
including organic producer education efforts,
assistance for persons transitioning from
conventional to organic agriculture, or
sustainable agriculture demonstration grants
authorized under Minnesota Statutes, section
17.116, and pertaining to organic research or
demonstration. Any unencumbered balance
does not cancel at the end of the first year
and is available for the second year.


Subd. 4.Bioenergy and Value-Added
Agriculture
10,235,000
10,235,000
$10,235,000 the first year and $10,235,000
the second year are for the agricultural
growth, research, and innovation program
in Minnesota Statutes, section 41A.12.
The commissioner shall consider creating
a competitive grant program for small
renewable energy projects for rural residents.
No later than February 1, 2014, and February
1, 2015, the commissioner must report to
the legislative committees with jurisdiction
over agriculture policy and finance regarding
the commissioner's accomplishments and
anticipated accomplishments in the following
areas: developing new markets for Minnesota
farmers by providing more fruits and
vegetables for Minnesota school children;
facilitating the start-up, modernization,
or expansion of livestock operations
including beginning and transitioning
livestock operations; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms; research
on conventional and cover crops; and biofuel
and other renewable energy development
including small renewable energy projects
for rural residents.
The commissioner may use up to 4.5 percent
of this appropriation for costs incurred to
administer the program. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered
under contract on or before June 30, 2015, for
agricultural growth, research, and innovation
grants in this subdivision are available until
June 30, 2017.
Money in this appropriation may be used
to provide additional assistance to persons
eligible for the pilot agricultural microloan
program under Minnesota Statutes, section
41B.056.
Funds in this appropriation may be used for
grants under this paragraph. The NextGen
Energy Board, established in Minnesota
Statutes, section 41A.105, shall make
recommendations to the commissioner on
grants for owners of Minnesota facilities
producing bioenergy, biobased content,
or a biobased formulated product; for
organizations that provide for on-station,
on-farm field scale research and outreach to
develop and test the agronomic and economic
requirements of diverse stands of prairie
plants and other perennials for bioenergy
systems; or for certain nongovernmental
entities. For the purposes of this paragraph,
"bioenergy" includes transportation fuels
derived from cellulosic material, as well as
the generation of energy for commercial heat,
industrial process heat, or electrical power
from cellulosic materials via gasification or
other processes. Grants are limited to 50
percent of the cost of research, technical
assistance, or equipment related to bioenergy,
biobased content, or biobased formulated
product production or $500,000, whichever
is less. Grants to nongovernmental entities
for the development of business plans and
structures related to community ownership
of eligible bioenergy facilities together may
not exceed $150,000. The board shall make
a good-faith effort to select projects that have
merit and, when taken together, represent a
variety of bioenergy technologies, biomass
feedstocks, and geographic regions of the
state. Projects must have a qualified engineer
provide certification on the technology and
fuel source. Grantees must provide reports
at the request of the commissioner. No later
than February 1, 2014, and February 1,
2015, the commissioner shall report on the
projects funded under this appropriation to
the legislative committees with jurisdiction
over agriculture policy and finance.
Money in this appropriation may be used
for sustainable agriculture grants under
Minnesota Statutes, section 17.116.
Notwithstanding Minnesota Statutes, section
41A.12, subdivision 3, of the amount
appropriated in this subdivision, $1,000,000
the first year and $1,000,000 the second year
are for distribution in equal amounts to each
of the state's county fairs to enhance arts
access and education and to preserve and
promote Minnesota's history and cultural
heritage.


Subd. 5.Administration and Financial
Assistance
7,093,000
7,093,000

Appropriations by Fund

General
6,293,000
6,293,000

Agricultural
800,000
800,000
$634,000 the first year and $634,000 the
second year are for continuation of the dairy
development and profitability enhancement
and dairy business planning grant programs
established under Laws 1997, chapter
216, section 7, subdivision 2, and Laws
2001, First Special Session chapter 2,
section 9, subdivision 2. The commissioner
may allocate the available sums among
permissible activities, including efforts to
improve the quality of milk produced in the
state in the proportions that the commissioner
deems most beneficial to Minnesota's
dairy farmers. The commissioner must
submit a detailed accomplishment report
and a work plan detailing future plans for,
and anticipated accomplishments from,
expenditures under this program to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agricultural policy and finance on or before
the start of each fiscal year. If significant
changes are made to the plans in the course
of the year, the commissioner must notify the
chairs and ranking minority members.
$47,000 the first year and $47,000 the second
year are for the Northern Crops Institute.
These appropriations may be spent to
purchase equipment.
$18,000 the first year and $18,000 the
second year are for a grant to the Minnesota
Livestock Breeders Association.
$235,000 the first year and $235,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.
$474,000 the first year and $474,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1. Aid payments to county and
district agricultural societies and associations
shall be disbursed no later than July 15 of
each year. These payments are the amount of
aid from the state for an annual fair held in
the previous calendar year.
$1,000 the first year and $1,000 the second
year are for grants to the Minnesota State
Poultry Association.
$108,000 the first year and $108,000 the
second year are for annual grants to the
Minnesota Turf Seed Council for basic
and applied research on: (1) the improved
production of forage and turf seed related to
new and improved varieties; and (2) native
plants, including plant breeding, nutrient
management, pest management, disease
management, yield, and viability. The grant
recipient may subcontract with a qualified
third party for some or all of the basic or
applied research.
$500,000 the first year and $500,000 the
second year are for grants to Second Harvest
Heartland on behalf of Minnesota's six
Second Harvest food banks for the purchase
of milk for distribution to Minnesota's food
shelves and other charitable organizations
that are eligible to receive food from the food
banks. Milk purchased under the grants must
be acquired from Minnesota milk processors
and based on low-cost bids. The milk must be
allocated to each Second Harvest food bank
serving Minnesota according to the formula
used in the distribution of United States
Department of Agriculture commodities
under The Emergency Food Assistance
Program (TEFAP). Second Harvest
Heartland must submit quarterly reports
to the commissioner on forms prescribed
by the commissioner. The reports must
include, but are not limited to, information
on the expenditure of funds, the amount
of milk purchased, and the organizations
to which the milk was distributed. Second
Harvest Heartland may enter into contracts
or agreements with food banks for shared
funding or reimbursement of the direct
purchase of milk. Each food bank receiving
money from this appropriation may use up to
two percent of the grant for administrative
expenses.
$94,000 the first year and $94,000 the
second year are for transfer to the Board of
Trustees of the Minnesota State Colleges
and Universities for statewide mental health
counseling support to farm families and
business operators through farm business
management programs at Central Lakes
College and Ridgewater College.
$17,000 the first year and $17,000 the
second year are for grants to the Minnesota
Horticultural Society.
Notwithstanding Minnesota Statutes,
section 18C.131, $800,000 the first year
and $800,000 the second year are from the
fertilizer account in the agricultural fund
for grants for fertilizer research as awarded
by the Minnesota Agricultural Fertilizer
Research and Education Council under
Minnesota Statutes, section 18C.71. The
amount appropriated in either fiscal year
must not exceed 57 percent of the inspection
fee revenue collected under Minnesota
Statutes, section 18C.425, subdivision 6,
during the previous fiscal year. No later
than February 1, 2015, the commissioner
shall report to the legislative committees
with jurisdiction over agriculture finance.
The report must include the progress and
outcome of funded projects as well as the
sentiment of the council concerning the need
for additional research funds.


Sec. 4. BOARD OF ANIMAL HEALTH
$
4,837,000
$
4,837,000



Sec. 5. AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE
$
2,643,000
$
2,643,000

ARTICLE 2
AGRICULTURE POLICY

    Section 1. Minnesota Statutes 2012, section 13.6435, is amended by adding a
subdivision to read:
    Subd. 14. Agricultural water quality certification program. Data collected
under the Minnesota agricultural water quality certification program are classified under
section 17.9899.

    Sec. 2. Minnesota Statutes 2012, section 17.03, subdivision 3, is amended to read:
    Subd. 3. Cooperation with federal agencies. (a) The commissioner shall cooperate
with the government of the United States, with financial agencies created to assist in the
development of the agricultural resources of this state, and so far as practicable may use
the facilities provided by the existing state departments and the various state and local
organizations. This subdivision is intended to relate to every function and duty which
devolves upon the commissioner.
    (b) The commissioner may apply for, receive, and disburse federal funds made
available to the state by federal law or regulation for any purpose related to the powers and
duties of the commissioner. All money received by the commissioner under this paragraph
shall be deposited in the state treasury and is appropriated to the commissioner for the
purposes for which it was received. Money made available under this paragraph may
be paid pursuant to applicable federal regulations and rate structures. Money received
under this paragraph does not cancel and is available for expenditure according to federal
law. The commissioner may contract with and enter into grant agreements with persons,
organizations, educational institutions, firms, corporations, other state agencies, and any
agency or instrumentality of the federal government to carry out agreements made with
the federal government relating to the expenditure of money under this paragraph. Bid
requirements under chapter 16C do not apply to contracts under this paragraph.

    Sec. 3. Minnesota Statutes 2012, section 17.1015, is amended to read:
17.1015 PROMOTIONAL EXPENDITURES.
In order to accomplish the purposes of section 17.101, the commissioner may
participate jointly with private persons in appropriate programs and projects and may enter
into contracts to carry out those programs and projects. The contracts may not include
the acquisition of land or buildings and are not subject to the provisions of chapter 16C
relating to competitive bidding.
The commissioner may spend money appropriated for the purposes of section
17.101 in the same manner that private persons, firms, corporations, and associations
make expenditures for these purposes, and expenditures made pursuant to section 17.101
for food, lodging, or travel are not governed by the travel rules of the commissioner of
management and budget.

    Sec. 4. Minnesota Statutes 2012, section 17.118, subdivision 2, is amended to read:
    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.
    (b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed
cervidae, ratitae, bison, sheep, horses, and llamas.
    (c) "Qualifying expenditures" means the amount spent for:
    (1) the acquisition, construction, or improvement of buildings or facilities for the
production of livestock or livestock products;
    (2) the development of pasture for use by livestock including, but not limited to, the
acquisition, development, or improvement of:
    (i) lanes used by livestock that connect pastures to a central location;
    (ii) watering systems for livestock on pasture including water lines, booster pumps,
and well installations;
    (iii) livestock stream crossing stabilization; and
    (iv) fences; or
    (3) the acquisition of equipment for livestock housing, confinement, feeding, and
waste management including, but not limited to, the following:
    (i) freestall barns;
    (ii) watering facilities;
    (iii) feed storage and handling equipment;
    (iv) milking parlors;
    (v) robotic equipment;
    (vi) scales;
    (vii) milk storage and cooling facilities;
    (viii) bulk tanks;
    (ix) computer hardware and software and associated equipment used to monitor
the productivity and feeding of livestock;
    (x) manure pumping and storage facilities;
    (xi) swine farrowing facilities;
    (xii) swine and cattle finishing barns;
    (xiii) calving facilities;
    (xiv) digesters;
    (xv) equipment used to produce energy;
    (xvi) on-farm processing facilities equipment;
    (xvii) fences; and
    (xviii) livestock pens and corrals and sorting, restraining, and loading chutes.
    Except for qualifying pasture development expenditures under clause (2), qualifying
expenditures only include amounts that are allowed to be capitalized and deducted under
either section 167 or 179 of the Internal Revenue Code in computing federal taxable
income. Qualifying expenditures do not include an amount paid to refinance existing debt.
    (d) "Qualifying period" means, for a grant awarded during a fiscal year, that full
calendar year of which the first six months precede the first day of the current fiscal year. For
example, an eligible person who makes qualifying expenditures during calendar year 2008
is eligible to receive a livestock investment grant between July 1, 2008, and June 30, 2009.

    Sec. 5. [17.9891] PURPOSE.
The commissioner, in consultation with the commissioner of natural resources,
commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
may implement a Minnesota agricultural water quality certification program whereby a
producer who demonstrates practices and management sufficient to protect water quality
is certified for up to ten years and presumed to be contributing the producer's share of
any targeted reduction of water pollutants during the certification period. The program
is voluntary. The voluntary program will first be piloted in selected watersheds across
the state, until the commissioner, in consultation with the Minnesota Agricultural Water
Quality Certification Program Advisory Committee, commissioner of natural resources,
commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
determines the program is suitable to be implemented in other watersheds.

    Sec. 6. [17.9892] DEFINITIONS.
    Subdivision 1. Application. The definitions in this section apply to sections
17.9891 to 17.993.
    Subd. 2. Certification. "Certification" means a producer has demonstrated
compliance with all applicable environmental rules and statutes for all of the producer's
owned and rented agricultural land and has achieved a satisfactory score through the
certification instrument as verified by a certifying agent.
    Subd. 3. Certifying agent. "Certifying agent" means a person who is authorized
by the commissioner to assess producers to determine whether a producer satisfies the
standards of the program.
    Subd. 4. Effective control. "Effective control" means possession of land by
ownership, written lease, or other legal agreement and authority to act as decision
maker for the day-to-day management of the operation at the time the producer achieves
certification and for the required certification period.
    Subd. 5. Eligible land. "Eligible land" means all acres of a producer's agricultural
operation, whether contiguous or not, that are under the effective control of the producer
at the time the producer enters into the program and that the producer operates with
equipment, labor, and management.
    Subd. 6. Program. "Program" means the Minnesota agricultural water quality
certification program.
    Subd. 7. Technical assistance. "Technical assistance" means professional, advisory,
or cost-share assistance provided to individuals in order to achieve certification.

    Sec. 7. [17.9893] CERTIFICATION INSTRUMENT.
The commissioner, in consultation with the Minnesota Agricultural Water Quality
Certification Program Advisory Committee, commissioner of natural resources,
commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
shall develop an analytical instrument to assess the water quality practices and
management of agricultural operations. This instrument shall be used to certify that the
water quality practices and management of an agricultural operation are consistent with
state water quality goals and standards. The commissioner shall define a satisfactory score
for certification purposes. The certification instrument tool shall:
(1) integrate applicable existing regulatory requirements;
(2) utilize technology and prioritize ease of use;
(3) utilize a water quality index or score applicable to the landscape;
(4) incorporate a process for updates and revisions as practices, management, and
technology changes become established and approved; and
(5) comprehensively address water quality impacts.

    Sec. 8. [17.9894] CERTIFYING AGENT LICENSE.
    Subdivision 1. License. A person who offers certification services to producers
as part of the program must satisfy all criteria in subdivision 2 and be licensed by
the commissioner. A certifying agent is ineligible to provide certification services
to any producer to whom the certifying agent has also provided technical assistance.
Notwithstanding section 16A.1283, the commissioner may set license fees.
    Subd. 2. Certifying agent requirements. In order to be licensed as a certifying
agent, a person must:
(1) be an agricultural conservation professional employed by a soil and water
conservation district or the Natural Resources Conservation Service, a Minnesota certified
crop advisor recognized by the American Society of Agronomy, or an individual with
agricultural conservation experience approved by the commissioner. The commissioner
may establish eligibility criteria by rule;
(2) have passed a comprehensive exam, as set by the commissioner, evaluating
knowledge of water quality, soil health, best farm management techniques, and the
certification instrument; and
(3) maintain continuing education requirements as set by the commissioner.

    Sec. 9. [17.9895] DUTIES OF A CERTIFYING AGENT.
    Subdivision 1. Duties. A certifying agent shall conduct a formal certification
assessment utilizing the certification instrument to determine whether a producer meets
program criteria. If a producer satisfies all requirements, the certifying agent shall notify
the commissioner of the producer's eligibility and request that the commissioner issue a
certificate. All records and documents used in the assessment shall be compiled by the
certifying agent and submitted to the commissioner.
    Subd. 2. Violations. (a) In the event a certifying agent violates any provision of
sections 17.9891 to 17.993 or an order of the commissioner, the commissioner may issue a
written warning or a correction order and may suspend or revoke a license.
(b) If the commissioner suspends or revokes a license, the certifying agent has ten
days from the date of suspension or revocation to appeal. If a certifying agent appeals, the
commissioner shall hold an administrative hearing within 30 days of the suspension or
revocation of the license, or longer by agreement of the parties, to determine whether the
license is revoked or suspended. The commissioner shall issue an opinion within 30 days.
If a person notifies the commissioner that the person intends to contest the commissioner's
opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with
the applicable provisions of chapter 14 for hearings in contested cases.

    Sec. 10. [17.9896] CERTIFICATION PROCEDURES.
    Subdivision 1. Producer duties. A producer who seeks certification of eligible land
shall conduct an initial assessment using the certification instrument, obtain technical
assistance if necessary to achieve a satisfactory score on the certification instrument, and
apply for certification from a licensed certifying agent.
    Subd. 2. Owned land. Once certified, if a producer obtains ownership of additional
agricultural land, the producer must notify a certifying agent and obtain certification of the
additional land within one year in order to retain the producer's original certification.
    Subd. 3. Leased land. Once certified, if a producer leases additional land, then the
producer must notify a certifying agent before farming operations commence on the newly
leased land. A producer who operates leased land is not required to implement practices
that permanently alter the landscape in order to be certified or remain certified if the land
is added following the original certification. A producer who operates leased land must
demonstrate sufficient annual crop management practices, consistent with the original
certification agreement, in order to remain certified.
    Subd. 4. Violations. (a) The commissioner may revoke a certification if the
producer violates subdivision 2 or 3.
(b) The commissioner may revoke a certification and seek reimbursement of any
monetary benefit a producer may have received due to certification from a producer who
fails to maintain certification criteria.
(c) If the commissioner revokes a certification, the producer has 30 days from the
date of suspension or revocation to appeal. If a producer appeals, the commissioner shall
hold an administrative hearing within 30 days of the suspension or revocation of the
certification, or longer by agreement of the parties, to determine whether the certification
is revoked or suspended. The commissioner shall issue an opinion within 30 days. If the
producer notifies the commissioner that the producer intends to contest the commissioner's
opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with
the applicable provisions of chapter 14 for hearings in contested cases.

    Sec. 11. [17.9897] CERTIFICATION CERTAINTY.
(a) Once a producer is certified, the producer:
(1) retains certification for up to ten years from the date of certification if the
producer complies with the certification agreement, even if the producer does not comply
with new state water protection laws or rules that take effect during the certification period;
(2) is presumed to be meeting the producer's contribution to any targeted reduction
of pollutants during the certification period;
(3) is required to continue implementation of practices that maintain the producer's
certification; and
(4) is required to retain all records pertaining to certification.
(b) Paragraph (a) does not preclude enforcement of a local rule or ordinance by a
local unit of government.

    Sec. 12. [17.9898] AUDITS.
The commissioner shall perform random audits of producers and certifying agents to
ensure compliance with the program. All producers and certifying agents shall cooperate
with the commissioner during these audits, and provide all relevant documents to the
commissioner for inspection and copying. Any delay, obstruction, or refusal to cooperate
with the commissioner's audit or falsification of or failure to provide required data or
information is a violation subject to the provisions of section 17.9895, subdivision 2, or
17.9896, subdivision 3.

    Sec. 13. [17.9899] DATA.
All data collected under the program that identifies a producer or a producer's
location are considered nonpublic data as defined in section 13.02, subdivision 9, or
private data on individuals as defined in section 13.02, subdivision 12. The commissioner
shall make available summary data of program outcomes on data classified as private
or nonpublic under this section.

    Sec. 14. [17.991] RULEMAKING.
The commissioner may adopt rules to implement the program.

    Sec. 15. [17.992] REPORTS.
The commissioner, in consultation with the Minnesota Agricultural Water Quality
Certification Program Advisory Committee, commissioner of natural resources,
commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
shall issue a biennial report to the chairs and ranking minority members of the legislative
committees with jurisdiction over agricultural policy on the status of the program.

    Sec. 16. [17.993] FINANCIAL ASSISTANCE.
The commissioner may use contributions from gifts or other state accounts, provided
that the purpose of the expenditure is consistent with the purpose of the accounts, for
grants, loans, or other financial assistance.

    Sec. 17. Minnesota Statutes 2012, section 18.77, subdivision 3, is amended to read:
    Subd. 3. Control. "Control" means to destroy all or part of the aboveground
growth of noxious weeds manage or prevent the maturation and spread of propagating
parts of noxious weeds from one area to another by a lawful method that does not cause
unreasonable adverse effects on the environment as defined in section 18B.01, subdivision
31
, and prevents the maturation and spread of noxious weed propagating parts from one
area to another.

    Sec. 18. Minnesota Statutes 2012, section 18.77, subdivision 4, is amended to read:
    Subd. 4. Eradicate. "Eradicate" means to destroy the aboveground growth and the
roots and belowground plant parts of noxious weeds by a lawful method that, which
prevents the maturation and spread of noxious weed propagating parts from one area
to another.

    Sec. 19. Minnesota Statutes 2012, section 18.77, subdivision 10, is amended to read:
    Subd. 10. Permanent pasture, hay meadow, woodlot, and or other noncrop
area. "Permanent pasture, hay meadow, woodlot, and or other noncrop area" means an
area of predominantly native or seeded perennial plants that can be used for grazing or hay
purposes but is not harvested on a regular basis and is not considered to be a growing crop.

    Sec. 20. Minnesota Statutes 2012, section 18.77, subdivision 12, is amended to read:
    Subd. 12. Propagating parts. "Propagating parts" means all plant parts, including
seeds, that are capable of producing new plants.

    Sec. 21. [18.771] NOXIOUS WEED CATEGORIES.
(a) For purposes of designation under section 18.79, subdivision 13, noxious weed
category means each of the following categories.
(b) "Prohibited noxious weeds" includes noxious weeds that must be controlled or
eradicated on all lands within the state. Transportation of a prohibited noxious weed's
propagating parts is restricted by permit except as allowed by section 18.82. Prohibited
noxious weeds may not be sold or propagated in Minnesota. There are two regulatory
listings for prohibited noxious weeds in Minnesota:
(1) the noxious weed eradicate list is established. Prohibited noxious weeds placed
on the noxious weed eradicate list are plants that are not currently known to be present in
Minnesota or are not widely established. These species must be eradicated; and
(2) the noxious weed control list is established. Prohibited noxious weeds placed on
the noxious weed control list are plants that are already established throughout Minnesota
or regions of the state. Species on this list must at least be controlled.
(c) "Restricted noxious weeds" includes noxious weeds that are widely distributed
in Minnesota, but for which the only feasible means of control is to prevent their spread
by prohibiting the importation, sale, and transportation of their propagating parts in the
state, except as allowed by section 18.82.
(d) "Specially regulated plants" includes noxious weeds that may be native
species or have demonstrated economic value, but also have the potential to cause harm
in noncontrolled environments. Plants designated as specially regulated have been
determined to pose ecological, economical, or human or animal health concerns. Species
specific management plans or rules that define the use and management requirements
for these plants must be developed by the commissioner of agriculture for each plant
designated as specially regulated. The commissioner must also take measures to minimize
the potential for harm caused by these plants.
(e) "County noxious weeds" includes noxious weeds that are designated by
individual county boards to be enforced as prohibited noxious weeds within the county's
jurisdiction and must be approved by the commissioner of agriculture, in consultation with
the Noxious Weed Advisory Committee. Each county board must submit newly proposed
county noxious weeds to the commissioner of agriculture for review. Approved county
noxious weeds shall also be posted with the county's general weed notice prior to May 15
each year. Counties are solely responsible for developing county noxious weed lists and
their enforcement.

    Sec. 22. Minnesota Statutes 2012, section 18.78, subdivision 3, is amended to read:
    Subd. 3. Cooperative Weed control agreement. The commissioner, municipality,
or county agricultural inspector or county-designated employee may enter into a
cooperative weed control agreement with a landowner or weed management area
group to establish a mutually agreed-upon noxious weed management plan for up to
three years duration, whereby a noxious weed problem will be controlled without
additional enforcement action. If a property owner fails to comply with the noxious weed
management plan, an individual notice may be served.

    Sec. 23. Minnesota Statutes 2012, section 18.79, subdivision 6, is amended to read:
    Subd. 6. Training for control or eradication of noxious weeds. The commissioner
shall conduct initial training considered necessary for inspectors and county-designated
employees in the enforcement of the Minnesota Noxious Weed Law. The director of the
University of Minnesota Extension Service may conduct educational programs for the
general public that will aid compliance with the Minnesota Noxious Weed Law. Upon
request, the commissioner may provide information and other technical assistance to the
county agricultural inspector or county-designated employee to aid in the performance of
responsibilities specified by the county board under section 18.81, subdivisions 1a and 1b.

    Sec. 24. Minnesota Statutes 2012, section 18.79, subdivision 13, is amended to read:
    Subd. 13. Noxious weed designation. The commissioner, in consultation with the
Noxious Weed Advisory Committee, shall determine which plants are noxious weeds
subject to control regulation under sections 18.76 to 18.91. The commissioner shall
prepare, publish, and revise as necessary, but at least once every three years, a list of
noxious weeds and their designated classification. The list must be distributed to the public
by the commissioner who may request the help of the University of Minnesota Extension,
the county agricultural inspectors, and any other organization the commissioner considers
appropriate to assist in the distribution. The commissioner may, in consultation with
the Noxious Weed Advisory Committee, accept and consider noxious weed designation
petitions from Minnesota citizens or Minnesota organizations or associations.

    Sec. 25. Minnesota Statutes 2012, section 18.82, subdivision 1, is amended to read:
    Subdivision 1. Permits. Except as provided in section 21.74, if a person wants to
transport along a public highway materials or equipment containing the propagating
parts of weeds designated as noxious by the commissioner, the person must secure a
written permit for transportation of the material or equipment from an inspector or
county-designated employee. Inspectors or county-designated employees may issue
permits to persons residing or operating within their jurisdiction. If the noxious weed
propagating parts are removed from materials and equipment or devitalized before
being transported, a permit is not needed A permit is not required for the transport of
noxious weeds for the purpose of destroying propagating parts at a Department of
Agriculture-approved disposal site. Anyone transporting noxious weed propagating parts
for the purpose of disposal at an approved site shall ensure that all materials are contained
in a manner that prevents escape during transport.

    Sec. 26. Minnesota Statutes 2012, section 18.91, subdivision 1, is amended to read:
    Subdivision 1. Duties. The commissioner shall consult with the Noxious Weed
Advisory Committee to advise the commissioner concerning responsibilities under
the noxious weed control program. The committee shall also evaluate species for
invasiveness, difficulty of control, cost of control, benefits, and amount of injury caused
by them. For each species evaluated, the committee shall recommend to the commissioner
on which noxious weed list or lists, if any, the species should be placed. Species currently
designated as prohibited or restricted noxious weeds or specially regulated plants must
be reevaluated every three years for a recommendation on whether or not they need to
remain on the noxious weed lists. The committee shall also advise the commissioner on
the implementation of the Minnesota Noxious Weed Law and assist the commissioner in
the development of management criteria for each noxious weed category. Members of
the committee are not entitled to reimbursement of expenses nor payment of per diem.
Members shall serve two-year terms with subsequent reappointment by the commissioner.

    Sec. 27. Minnesota Statutes 2012, section 18.91, subdivision 2, is amended to read:
    Subd. 2. Membership. The commissioner shall appoint members, which shall
include representatives from the following:
(1) horticultural science, agronomy, and forestry at the University of Minnesota;
(2) the nursery and landscape industry in Minnesota;
(3) the seed industry in Minnesota;
(4) the Department of Agriculture;
(5) the Department of Natural Resources;
(6) a conservation organization;
(7) an environmental organization;
(8) at least two farm organizations;
(9) the county agricultural inspectors;
(10) city, township, and county governments;
(11) the Department of Transportation;
(12) the University of Minnesota Extension;
(13) the timber and forestry industry in Minnesota;
(14) the Board of Water and Soil Resources; and
(15) soil and water conservation districts.;
(16) Minnesota Association of County Land Commissioners; and
(17) members as needed.

    Sec. 28. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
to read:
    Subd. 4a. Bulk pesticide storage facility. "Bulk pesticide storage facility" means a
facility that is required to have a permit under section 18B.14.

    Sec. 29. Minnesota Statutes 2012, section 18B.07, subdivision 4, is amended to read:
    Subd. 4. Pesticide storage safeguards at application sites. A person may not
allow a pesticide, rinsate, or unrinsed pesticide container to be stored, kept, or to remain in
or on any site without safeguards adequate to prevent an incident. Pesticides may not be
stored in an area with access to an open drain, unless a safeguard is provided.

    Sec. 30. Minnesota Statutes 2012, section 18B.07, subdivision 5, is amended to read:
    Subd. 5. Use of public water supplies for filling application equipment. (a) A
person may not fill pesticide application equipment directly from a public water supply,
as defined in section 144.382, or from public waters, as defined in section 103G.005,
subdivision 15, unless the outlet from the public equipment or water supply is equipped
with a backflow prevention device that complies with the Minnesota Plumbing Code
under Minnesota Rules, parts 4715.2000 to 4715.2280.
(b) Cross connections between a water supply used for filling pesticide application
equipment are prohibited.
(c) This subdivision does not apply to permitted applications of aquatic pesticides to
public waters.

    Sec. 31. Minnesota Statutes 2012, section 18B.07, subdivision 7, is amended to read:
    Subd. 7. Cleaning equipment in or near surface water Pesticide handling
restrictions. (a) A person may not:
(1) clean pesticide application equipment in surface waters of the state; or
(2) fill or clean pesticide application equipment adjacent to surface waters,
ditches, or wells where, because of the slope or other conditions, pesticides or materials
contaminated with pesticides could enter or contaminate the surface waters, groundwater,
or wells, as a result of overflow, leakage, or other causes.
(b) This subdivision does not apply to permitted application of aquatic pesticides to
public waters.

    Sec. 32. Minnesota Statutes 2012, section 18B.26, subdivision 3, is amended to read:
    Subd. 3. Registration application and gross sales fee. (a) For an agricultural
pesticide, a registrant shall pay an annual registration application fee for each agricultural
pesticide of $350. The fee is due by December 31 preceding the year for which the
application for registration is made. The fee is nonrefundable.
(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual
registration application fee for each nonagricultural pesticide of $350. The fee is due by
December 31 preceding the year for which the application for registration is made. The
fee is nonrefundable. The registrant of a nonagricultural pesticide shall pay, in addition to
the $350 minimum fee, a fee of 0.5 percent of annual gross sales of the nonagricultural
pesticide in the state and the annual gross sales of the nonagricultural pesticide sold into
the state for use in this state. The commissioner may not assess a fee under this paragraph
if the amount due based on percent of annual gross sales is less than $10 No fee is required
if the fee due amount based on percent of annual gross sales of a nonagricultural pesticide
is less than $10. The registrant shall secure sufficient sales information of nonagricultural
pesticides distributed into this state from distributors and dealers, regardless of distributor
location, to make a determination. Sales of nonagricultural pesticides in this state and
sales of nonagricultural pesticides for use in this state by out-of-state distributors are not
exempt and must be included in the registrant's annual report, as required under paragraph
(g), and fees shall be paid by the registrant based upon those reported sales. Sales of
nonagricultural pesticides in the state for use outside of the state are exempt from the
gross sales fee in this paragraph if the registrant properly documents the sale location and
distributors. A registrant paying more than the minimum fee shall pay the balance due by
March 1 based on the gross sales of the nonagricultural pesticide by the registrant for the
preceding calendar year. A pesticide determined by the commissioner to be a sanitizer or
disinfectant is exempt from the gross sales fee.
(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed
pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the
agricultural pesticide in the state and the annual gross sales of the agricultural pesticide
sold into the state for use in this state.
(d) In those cases where a registrant first sells an agricultural pesticide in or into the
state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer
license and is responsible for payment of the annual gross sales fee under paragraph (c),
record keeping under paragraph (i), and all other requirements of section 18B.316.
(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013,
by the commissioner on the registration and sale of pesticides is less than $6,600,000, the
commissioner, after a public hearing, may increase proportionally the pesticide sales and
product registration fees under this chapter by the amount necessary to ensure this level
of revenue is achieved. The authority under this section expires on June 30, 2014. The
commissioner shall report any fee increases under this paragraph 60 days before the fee
change is effective to the senate and house of representatives agriculture budget divisions.
    (f) An additional fee of 50 percent of the registration application fee must be paid by
the applicant for each pesticide to be registered if the application is a renewal application
that is submitted after December 31.
    (g) A registrant must annually report to the commissioner the amount, type and
annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or
otherwise distributed in the state. The report shall be filed by March 1 for the previous
year's registration. The commissioner shall specify the form of the report or approve
the method for submittal of the report and may require additional information deemed
necessary to determine the amount and type of nonagricultural pesticide annually
distributed in the state. The information required shall include the brand name, United
States Environmental Protection Agency registration number, and amount of each
nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but
the information collected, if made public, shall be reported in a manner which does not
identify a specific brand name in the report.
(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually
report to the commissioner the amount, type, and annual gross sales of each registered
agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the
state for use in the state. The report must be filed by January 31 for the previous year's
sales. The commissioner shall specify the form, contents, and approved electronic method
for submittal of the report and may require additional information deemed necessary to
determine the amount and type of agricultural pesticide annually distributed within the
state or into the state. The information required must include the brand name, United States
Environmental Protection Agency registration number, and amount of each agricultural
pesticide sold, offered for sale, or otherwise distributed in the state or into the state.
(i) A person who registers a pesticide with the commissioner under paragraph (b),
or a registrant under paragraph (d), shall keep accurate records for five years detailing
all distribution or sales transactions into the state or in the state and subject to a fee and
surcharge under this section.
(j) The records are subject to inspection, copying, and audit by the commissioner
and must clearly demonstrate proof of payment of all applicable fees and surcharges
for each registered pesticide product sold for use in this state. A person who is located
outside of this state must maintain and make available records required by this subdivision
in this state or pay all costs incurred by the commissioner in the inspecting, copying, or
auditing of the records.
(k) The commissioner may adopt by rule regulations that require persons subject
to audit under this section to provide information determined by the commissioner to be
necessary to enable the commissioner to perform the audit.
    (l) A registrant who is required to pay more than the minimum fee for any pesticide
under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee
paid after March 1 in the year for which the license is to be issued.

    Sec. 33. Minnesota Statutes 2012, section 18B.305, is amended to read:
18B.305 PESTICIDE EDUCATION AND TRAINING.
    Subdivision 1. Education and training. (a) The commissioner, as the lead agency,
shall develop, implement or approve, and evaluate, in conjunction consultation with the
University of Minnesota Extension Service, the Minnesota State Colleges and Universities
system, and other educational institutions, innovative educational and training programs
addressing pesticide concerns including:
(1) water quality protection;
(2) endangered species protection;
(3) minimizing pesticide residues in food and water;
(4) worker protection and applicator safety;
(5) chronic toxicity;
(6) integrated pest management and pest resistance; and
(7) pesticide disposal;
(8) pesticide drift;
(9) relevant laws including pesticide labels and labeling and state and federal rules
and regulations; and
(10) current science and technology updates.
(b) The commissioner shall appoint educational planning committees which must
include representatives of industry and applicators.
(c) Specific current regulatory concerns must be discussed and, if appropriate,
incorporated into each training session. Relevant changes to pesticide product labels or
labeling or state and federal rules and regulations may be included.
(d) The commissioner may approve programs from private industry, higher
education institutions, and nonprofit organizations that meet minimum requirements for
education, training, and certification.
    Subd. 2. Training manual and examination development. The commissioner, in
conjunction consultation with the University of Minnesota Extension Service and other
higher education institutions, shall continually revise and update pesticide applicator
training manuals and examinations. The manuals and examinations must be written to meet
or exceed the minimum standards required by the United States Environmental Protection
Agency and pertinent state specific information. Questions in the examinations must be
determined by the commissioner in consultation with other responsible agencies. Manuals
and examinations must include pesticide management practices that discuss prevention of
pesticide occurrence in groundwaters groundwater and surface water of the state.

    Sec. 34. Minnesota Statutes 2012, section 18B.316, subdivision 1, is amended to read:
    Subdivision 1. Requirement. (a) A person must not distribute offer for sale or sell
an agricultural pesticide in the state or into the state without first obtaining an agricultural
pesticide dealer license.
(b) Each location or place of business from which an agricultural pesticide is
distributed offered for sale or sold in the state or into the state is required to have a
separate agricultural pesticide dealer license.
(c) A person who is a licensed pesticide dealer under section 18B.31 is not required
to also be licensed under this subdivision.

    Sec. 35. Minnesota Statutes 2012, section 18B.316, subdivision 3, is amended to read:
    Subd. 3. Resident agent. A person required to be licensed under subdivisions 1
and 2, or a person licensed as a pesticide dealer pursuant to section 18B.31 and who
operates from a location or place of business outside the state and who distributes offers
for sale or sells an agricultural pesticide into the state, must continuously maintain in
this state the following:
(1) a registered office; and
(2) a registered agent, who may be either a resident of this state whose business
office or residence is identical with the registered office under clause (1), a domestic
corporation or limited liability company, or a foreign corporation of limited liability
company authorized to transact business in this state and having a business office identical
with the registered office.
A person licensed under this section or section 18B.31 shall annually file with the
commissioner, either at the time of initial licensing or as part of license renewal, the name,
address, telephone number, and e-mail address of the licensee's registered agent.
For licensees under section 18B.31 who are located in the state, the licensee is
the registered agent.

    Sec. 36. Minnesota Statutes 2012, section 18B.316, subdivision 4, is amended to read:
    Subd. 4. Responsibility. The resident agent is responsible for the acts of a licensed
agricultural pesticide dealer, or of a licensed pesticide dealer under section 18B.31 who
operates from a location or place of business outside the state and who distributes offers
for sale or sells an agricultural pesticide into the state, as well as the acts of the employees
of those licensees.

    Sec. 37. Minnesota Statutes 2012, section 18B.316, subdivision 8, is amended to read:
    Subd. 8. Report of sales and payment to commissioner. A person who is an
agricultural pesticide dealer, or is a licensed pesticide dealer under section 18B.31, who
distributes offers for sale or sells an agricultural pesticide in or into the state, and a
pesticide registrant pursuant to section 18B.26, subdivision 3, paragraph (d), shall no
later than January 31 of each year report and pay applicable fees on annual gross sales
of agricultural pesticides to the commissioner pursuant to requirements under section
18B.26, subdivision 3, paragraphs (c) and (h).

    Sec. 38. Minnesota Statutes 2012, section 18B.316, subdivision 9, is amended to read:
    Subd. 9. Application. (a) A person must apply to the commissioner for an
agricultural pesticide dealer license on forms and in a manner approved by the
commissioner.
(b) The applicant must be the person in charge of each location or place of business
from which agricultural pesticides are distributed offered for sale or sold in or into the state.
(c) The commissioner may require that the applicant provide information regarding
the applicant's proposed operations and other information considered pertinent by the
commissioner.
(d) The commissioner may require additional demonstration of licensee qualification
if the licensee has had a license suspended or revoked, or has otherwise had a history of
violations in another state or violations of this chapter.
(e) A licensed agricultural pesticide dealer who changes the dealer's address or place
of business must immediately notify the commissioner of the change.
(f) Beginning January 1, 2011, an application for renewal of an agricultural pesticide
dealer license is complete only when a report and any applicable payment of fees under
subdivision 8 are received by the commissioner.

    Sec. 39. Minnesota Statutes 2012, section 18B.37, subdivision 4, is amended to read:
    Subd. 4. Storage, handling, Incident response, and disposal plan. A pesticide
dealer, agricultural pesticide dealer, or a commercial, noncommercial, or structural pest
control applicator or the business that the applicator is employed by business must develop
and maintain a an incident response plan that describes its pesticide storage, handling,
incident response, and disposal practices the actions that will be taken to prevent and
respond to pesticide incidents. The plan must contain the same information as forms
provided by the commissioner. The plan must be kept at a principal business site or location
within this state and must be submitted to the commissioner upon request on forms provided
by the commissioner. The plan must be available for inspection by the commissioner.

    Sec. 40. Minnesota Statutes 2012, section 18C.111, subdivision 4, is amended to read:
    Subd. 4. Certification of regulatory compliance. (a) The commissioner may,
under rules adopted under section 18C.121, subdivision 1, certify a person to offer or
perform a regulatory compliance inspection of any person or site that stores, handles, or
distributes ammonia or anhydrous ammonia fertilizer. The deadlines established in section
14.125, are extended until June 30, 2014, for rules adopted under this subdivision.
(b) Pursuant to those rules, a person certified under paragraph (a) may issue a
certification of compliance to an inspected person or site if the certified person documents
in writing full compliance with the provisions of this chapter and rules adopted under
this chapter.
(c) A person or site issued a certification of compliance must provide a copy of the
certification to the commissioner immediately upon request or within 90 days following
certification.
(d) Certifications of compliance are valid for a period of three years. The
commissioner may determine a different time period in the interest of public safety or for
other reasonable cause.

    Sec. 41. Minnesota Statutes 2012, section 18C.430, is amended to read:
18C.430 COMMERCIAL ANIMAL WASTE TECHNICIAN.
    Subdivision 1. Requirement. (a) Except as provided in paragraph (c), after March
1, 2000, A person may not manage or apply animal wastes to the land for hire without a
valid commercial animal waste technician license. This section does not apply to a person
managing or applying animal waste on land managed by the person's employer.:
(1) without a valid commercial animal waste technician applicator license;
(2) without a valid commercial animal waste technician site manager license; or
(3) as a sole proprietorship, company, partnership, or corporation unless a
commercial animal waste technician company license is held and a commercial animal
waste technical site manager is employed by the entity.
(b) A person managing or applying animal wastes for hire must have a valid
license identification card when managing or applying animal wastes for hire and must
display it upon demand by an authorized representative of the commissioner or a law
enforcement officer. The commissioner shall prescribe the information required on the
license identification card.
(c) A person who is not a licensed commercial animal waste technician who has had
at least two hours of training or experience in animal waste management may manage
or apply animal waste for hire under the supervision of a commercial animal waste
technician. A commercial animal waste technician applicator must have a minimum of
two hours of certification training in animal waste management and may only manage or
apply animal waste for hire under the supervision of a commercial animal waste technician
site manager. The commissioner shall prescribe the conditions of the supervision and the
form and format required on the certification training.
(d) This section does not apply to a person managing or applying animal waste on
land managed by the person's employer.
    Subd. 2. Responsibility. A person required to be licensed under this section who
performs animal waste management or application for hire or who employs a person to
perform animal waste management or application for compensation is responsible for
proper management or application of the animal wastes.
    Subd. 3. License. (a) A commercial animal waste technician license, including
applicator, site manager, and company:
(1) is valid for three years one year and expires on December 31 of the third year for
which it is issued, unless suspended or revoked before that date;
(2) is not transferable to another person; and
(3) must be prominently displayed to the public in the commercial animal waste
technician's place of business.
(b) The commercial animal waste technician company license number assigned by
the commissioner must appear on the application equipment when a person manages
or applies animal waste for hire.
    Subd. 4. Application. (a) A person must apply to the commissioner for a commercial
animal waste technician license on forms and in the manner required by the commissioner
and must include the application fee. The commissioner shall prescribe and administer
an examination or equivalent measure to determine if the applicant is eligible for the
commercial animal waste technician license, site manager license, or applicator license.
(b) The commissioner of agriculture, in cooperation with the University of
Minnesota Extension Service and appropriate educational institutions, shall establish and
implement a program for training and licensing commercial animal waste technicians.
    Subd. 5. Renewal application. (a) A person must apply to the commissioner of
agriculture to renew a commercial animal waste technician license and must include the
application fee. The commissioner may renew a commercial animal waste technician
applicator or site manager license, subject to reexamination, attendance at workshops
approved by the commissioner, or other requirements imposed by the commissioner to
provide the animal waste technician with information regarding changing technology and
to help ensure a continuing level of competence and ability to manage and apply animal
wastes properly. The applicant may renew a commercial animal waste technician license
within 12 months after expiration of the license without having to meet initial testing
requirements. The commissioner may require additional demonstration of animal waste
technician qualification if a person has had a license suspended or revoked or has had a
history of violations of this section.
(b) An applicant who meets renewal requirements by reexamination instead
of attending workshops must pay a fee for the reexamination as determined by the
commissioner.
    Subd. 6. Financial responsibility. (a) A commercial animal waste technician
license may not be issued unless the applicant furnishes proof of financial responsibility.
The financial responsibility may be demonstrated by (1) proof of net assets equal to or
greater than $50,000, or (2) a performance bond or insurance of the kind and in an amount
determined by the commissioner of agriculture.
(b) The bond or insurance must cover a period of time at least equal to the term of
the applicant's license. The commissioner shall immediately suspend the license of a
person who fails to maintain the required bond or insurance.
(c) An employee of a licensed person is not required to maintain an insurance policy
or bond during the time the employer is maintaining the required insurance or bond.
(d) Applications for reinstatement of a license suspended under paragraph (b) must
be accompanied by proof of satisfaction of judgments previously rendered.
    Subd. 7. Application fee. (a) A person initially applying for or renewing
a commercial animal waste technician applicator license must pay a nonrefundable
application fee of $50 and a fee of $10 for each additional identification card requested.
$25. A person initially applying for or renewing a commercial animal waste technician
site manager license must pay a nonrefundable application fee of $50. A person initially
applying for or renewing a commercial animal waste technician company license must
pay a nonrefundable application fee of $100.
(b) A license renewal application received after March 1 in the year for which the
license is to be issued is subject to a penalty fee of 50 percent of the application fee. The
penalty fee must be paid before the renewal license may be issued.
(c) An application for a duplicate commercial animal waste technician license must
be accompanied by a nonrefundable fee of $10.

    Sec. 42. Minnesota Statutes 2012, section 18C.433, subdivision 1, is amended to read:
    Subdivision 1. Requirement. Beginning January 1, 2006, only a commercial
animal waste technician, site manager or commercial animal waste technician applicator
may apply animal waste from a feedlot that:
(1) has a capacity of 300 animal units or more; and
(2) does not have an updated manure management plan that meets the requirements
of Pollution Control Agency rules.

    Sec. 43. Minnesota Statutes 2012, section 31.94, is amended to read:
31.94 COMMISSIONER DUTIES.
(a) In order to promote opportunities for organic agriculture in Minnesota, the
commissioner shall:
(1) survey producers and support services and organizations to determine
information and research needs in the area of organic agriculture practices;
(2) work with the University of Minnesota to demonstrate the on-farm applicability
of organic agriculture practices to conditions in this state;
(3) direct the programs of the department so as to work toward the promotion of
organic agriculture in this state;
(4) inform agencies of how state or federal programs could utilize and support
organic agriculture practices; and
(5) work closely with producers, the University of Minnesota, the Minnesota Trade
Office, and other appropriate organizations to identify opportunities and needs as well
as ensure coordination and avoid duplication of state agency efforts regarding research,
teaching, marketing, and extension work relating to organic agriculture.
(b) By November 15 of each year that ends in a zero or a five, the commissioner,
in conjunction with the task force created in paragraph (c), shall report on the status of
organic agriculture in Minnesota to the legislative policy and finance committees and
divisions with jurisdiction over agriculture. The report must include available data on
organic acreage and production, available data on the sales or market performance of
organic products, and recommendations regarding programs, policies, and research efforts
that will benefit Minnesota's organic agriculture sector.
(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the
University of Minnesota on policies and programs that will improve organic agriculture in
Minnesota, including how available resources can most effectively be used for outreach,
education, research, and technical assistance that meet the needs of the organic agriculture
community. The task force must consist of the following residents of the state:
(1) three organic farmers using organic agriculture methods;
(2) one wholesaler or distributor of organic products;
(3) one representative of organic certification agencies;
(4) two organic processors;
(5) one representative from University of Minnesota Extension;
(6) one University of Minnesota faculty member;
(7) one representative from a nonprofit organization representing producers;
(8) two public members;
(9) one representative from the United States Department of Agriculture;
(10) one retailer of organic products; and
(11) one organic consumer representative.
The commissioner, in consultation with the director of the Minnesota Agricultural
Experiment Station; the dean and director of University of Minnesota Extension; and the
dean of the College of Food, Agricultural and Natural Resource Sciences, shall appoint
members to serve staggered two-year three-year 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, 2013 2016.
(d) For the purposes of expanding, improving, and developing production and
marketing of the organic products of Minnesota agriculture, the commissioner may
receive funds from state and federal sources and spend them, including through grants or
contracts, to assist producers and processors to achieve certification, to conduct education
or marketing activities, to enter into research and development partnerships, or to address
production or marketing obstacles to the growth and well-being of the industry.
(e) The commissioner may facilitate the registration of state organic production
and handling operations including those exempt from organic certification according to
Code of Federal Regulations, title 7, section 205.101, and certification agents operating
within the state.

    Sec. 44. Minnesota Statutes 2012, section 41A.10, subdivision 2, is amended to read:
    Subd. 2. Cellulosic biofuel production goal. The state cellulosic biofuel production
goal is one-quarter of the total amount necessary for ethanol biofuel use required under
section 239.791, subdivision 1a 1, by 2015 or when cellulosic biofuel facilities in the state
attain a total annual production level of 60,000,000 gallons, whichever is first.

    Sec. 45. Minnesota Statutes 2012, section 41A.10, is amended by adding a subdivision
to read:
    Subd. 3. Expiration. This section expires January 1, 2015.

    Sec. 46. Minnesota Statutes 2012, section 41A.105, subdivision 1a, is amended to read:
    Subd. 1a. Definitions. For the purpose of this section:
    (1) "biobased content" means a chemical, polymer, monomer, or plastic that is not
sold primarily for use as food, feed, or fuel and that has a biobased percentage of at least
51 percent as determined by testing representative samples using American Society for
Testing and Materials specification D6866;
    (2) "biobased formulated product" means a product that is not sold primarily for use
as food, feed, or fuel and that has a biobased content percentage of at least ten percent
as determined by testing representative samples using American Society for Testing
and Materials specification D6866, or that contains a biobased chemical constituent
that displaces a known hazardous or toxic constituent previously used in the product
formulation;
    (1) (3) "biobutanol facility" means a facility at which biobutanol is produced; and
    (2) (4) "biobutanol" means fermentation isobutyl alcohol that is derived from
agricultural products, including potatoes, cereal grains, cheese whey, and sugar beets;
forest products; or other renewable resources, including residue and waste generated
from the production, processing, and marketing of agricultural products, forest products,
and other renewable resources.

    Sec. 47. Minnesota Statutes 2012, section 41A.105, subdivision 3, is amended to read:
    Subd. 3. Duties. The board shall research and report to the commissioner of
agriculture and to the legislature recommendations as to how the state can invest its
resources to most efficiently achieve energy independence, agricultural and natural
resources sustainability, and rural economic vitality. The board shall:
    (1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen,
methanol, biodiesel, and ethanol within Minnesota;
    (2) examine the opportunity for biobased content and biobased formulated product
production at integrated biorefineries or stand alone facilities using agricultural and
forestry feedstocks;
    (2) (3) develop equity grant programs to assist locally owned facilities;
    (3) (4) study the proper role of the state in creating financing and investing and
providing incentives;
    (4) (5) evaluate how state and federal programs, including the Farm Bill, can best
work together and leverage resources;
    (5) (6) work with other entities and committees to develop a clean energy program;
and
    (6) (7) report to the legislature before February 1 each year with recommendations
as to appropriations and results of past actions and projects.

    Sec. 48. Minnesota Statutes 2012, section 41A.105, subdivision 5, is amended to read:
    Subd. 5. Expiration. This section expires June 30, 2014 2015.

    Sec. 49. Minnesota Statutes 2012, section 41A.12, subdivision 3, is amended to read:
    Subd. 3. Oversight. The commissioner, in consultation with the chairs and ranking
minority members of the house of representatives and senate committees with jurisdiction
over agriculture finance, must allocate available funds among eligible uses, develop
competitive eligibility criteria, and award funds on a needs basis. By February 1 each
year, the commissioner shall report to the legislature on the allocation among eligible uses
and any financial assistance provided under this section.

    Sec. 50. Minnesota Statutes 2012, section 41A.12, is amended by adding a subdivision
to read:
    Subd. 3a. Grant awards. Grant projects may continue for up to three years.
Multiyear projects must be reevaluated by the commissioner before second- and third-year
funding is approved. A project is limited to one grant for its funding.

    Sec. 51. Minnesota Statutes 2012, section 41B.04, subdivision 9, is amended to read:
    Subd. 9. Restructured loan agreement. (a) For a deferred restructured loan, all
payments on the primary and secondary principal, all payments of interest on the secondary
principal, and an agreed portion of the interest payable to the eligible agricultural lender
on the primary principal must be deferred to the end of the term of the loan.
(b) Interest on secondary principal must accrue at a below market interest rate.
(c) At the conclusion of the term of the restructured loan, the borrower owes primary
principal, secondary principal, and deferred interest on primary and secondary principal.
However, part of this balloon payment may be forgiven following an appraisal by the
lender and the authority to determine the current market value of the real estate subject to
the mortgage. If the current market value of the land after appraisal is less than the amount
of debt owed by the borrower to the lender and authority on this obligation, that portion of
the obligation that exceeds the current market value of the real property must be forgiven
by the lender and the authority in the following order:
(1) deferred interest on secondary principal;
(2) secondary principal;
(3) deferred interest on primary principal;
(4) primary principal as provided in an agreement between the authority and the
lender; and
(5) accrued but not deferred interest on primary principal.
(d) For an amortized restructured loan, payments must include installments on
primary principal and interest on the primary principal. An amortized restructured loan
must be amortized over a time period and upon terms to be established by the authority by
rule.
(e) A borrower may prepay the restructured loan, with all primary and secondary
principal and interest and deferred interest at any time without prepayment penalty.
(f) The authority may not participate in refinancing a restructured loan at the
conclusion of the restructured loan.

    Sec. 52. Minnesota Statutes 2012, section 41D.01, subdivision 4, is amended to read:
    Subd. 4. Expiration. This section expires on June 30, 2013 2018.

    Sec. 53. Minnesota Statutes 2012, section 116J.437, subdivision 1, is amended to read:
    Subdivision 1. Definitions. (a) For the purpose of this section, the following terms
have the meanings given.
    (b) "Green economy" means products, processes, methods, technologies, or services
intended to do one or more of the following:
    (1) increase the use of energy from renewable sources, including through achieving
the renewable energy standard established in section 216B.1691;
    (2) achieve the statewide energy-savings goal established in section 216B.2401,
including energy savings achieved by the conservation investment program under section
216B.241;
    (3) achieve the greenhouse gas emission reduction goals of section 216H.02,
subdivision 1, including through reduction of greenhouse gas emissions, as defined in
section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through,
but not limited to, carbon capture, storage, or sequestration;
    (4) monitor, protect, restore, and preserve the quality of surface waters, including
actions to further the purposes of the Clean Water Legacy Act as provided in section
114D.10, subdivision 1;
    (5) expand the use of biofuels, including by expanding the feasibility or reducing the
cost of producing biofuels or the types of equipment, machinery, and vehicles that can
use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections
41A.10, subdivision 2, and 41A.11 petroleum replacement goal in section 239.7911; or
    (6) increase the use of green chemistry, as defined in section 116.9401.
For the purpose of clause (3), "green economy" includes strategies that reduce carbon
emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass
transit or otherwise reducing commuting for employees.

    Sec. 54. Minnesota Statutes 2012, section 223.17, is amended by adding a subdivision
to read:
    Subd. 7a. Bond requirements; claims. For entities licensed under this chapter
and chapter 232, the bond requirements and claims against the bond are governed under
section 232.22, subdivision 6a.

    Sec. 55. Minnesota Statutes 2012, section 232.22, is amended by adding a subdivision
to read:
    Subd. 6a. Bond determinations. If a public grain warehouse operator is licensed
under both this chapter and chapter 223, the warehouse shall have its bond determined
by its gross annual grain purchase amount or its annual average grain storage value,
whichever is greater. For those entities licensed under this chapter and chapter 223, the
entire bond shall be available to any claims against the bond for claims filed under this
chapter and chapter 223.

    Sec. 56. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
to read:
    Subd. 1a. Advanced biofuel. "Advanced biofuel" has the meaning given in Public
Law 110-140, title 2, subtitle A, section 201.

    Sec. 57. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
to read:
    Subd. 5a. Biofuel. "Biofuel" means a renewable fuel with an approved pathway
under authority of the federal Energy Policy Act of 2005, Public Law 109-58, as amended
by the federal Energy Independence and Security Act of 2007, Public Law 110–140,
and approved for sale by the United States Environmental Protection Agency. The term
"biofuel" includes both advanced and conventional biofuels.

    Sec. 58. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
to read:
    Subd. 7a. Conventional biofuel. "Conventional biofuel" means ethanol derived
from cornstarch, as defined in Public Law 110-140, title 2, subtitle A, section 201.

    Sec. 59. Minnesota Statutes 2012, section 239.761, subdivision 3, is amended to read:
    Subd. 3. Gasoline. (a) Gasoline that is not blended with ethanol biofuel must not be
contaminated with water or other impurities and must comply with ASTM specification
D4814-08b. Gasoline that is not blended with ethanol biofuel 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 biofuel;
(3) shall not blend the gasoline with other petroleum products that are not gasoline
or denatured, agriculturally derived ethanol biofuel;
(4) shall not blend the gasoline with products commonly and commercially known
as casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or
natural gasoline; and
(5) may blend the gasoline with a detergent additive, an antiknock additive, or an
additive designed to replace tetra-ethyl lead, that is registered by the EPA.

    Sec. 60. Minnesota Statutes 2012, section 239.791, subdivision 1, is amended to read:
    Subdivision 1. Minimum ethanol biofuel content required. (a) Except as provided
in subdivisions 10 to 14, a person responsible for the product shall ensure that all gasoline
sold or offered for sale in Minnesota must contain at least the quantity of ethanol biofuel
required by clause (1) or (2), whichever is greater at the option of the person responsible
for the product:
(1) the greater of:
(i) 10.0 percent denatured ethanol conventional biofuel by volume; or
(2) (ii) the maximum percent of denatured ethanol conventional biofuel by volume
authorized in a waiver granted by the United States Environmental Protection Agency; or
(2) 10.0 percent of a biofuel, other than a conventional biofuel, by volume authorized
in a waiver granted by the United States Environmental Protection Agency or a biofuel
formulation registered by the United States Environmental Protection Agency under
United States Code, title 42, section 7545.
(b) For purposes of enforcing the minimum ethanol requirement of paragraph (a),
clause (1), item (i), a gasoline/ethanol gasoline/biofuel blend will be construed to be in
compliance if the ethanol biofuel content, exclusive of denaturants and other permitted
components, comprises not less than 9.2 percent by volume and not more than 10.0 percent
by volume of the blend as determined by an appropriate United States Environmental
Protection Agency or American Society of Testing Materials standard method of analysis
of alcohol/ether content in engine fuels.
(c) The provisions of this subdivision are suspended during any period of time that
subdivision 1a, paragraph (a), is in effect. The aggregate amount of biofuel blended
pursuant to this subdivision may be any biofuel; however, conventional biofuel must
comprise no less than the portion specified on and after the specified dates:

(1)
July 1, 2013
90 percent

(2)
January 1, 2015
80 percent

(3)
January 1, 2017
70 percent

(4)
January 1, 2020
60 percent

(5)
January 1, 2025
no minimum

    Sec. 61. Minnesota Statutes 2012, section 239.791, subdivision 2a, is amended to read:
    Subd. 2a. Federal Clean Air Act waivers; conditions. (a) Before a waiver granted
by the United States Environmental Protection Agency under section 211(f)(4) of the
Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4),
may alter the minimum content level required by subdivision 1, paragraph (a), clause (2),
or subdivision 1a, paragraph (a), clause (2) (1), item (ii), the waiver must:
(1) apply to all gasoline-powered motor vehicles irrespective of model year; and
(2) allow for special regulatory treatment of Reid vapor pressure under Code of
Federal Regulations, title 40, section 80.27, paragraph (d), for blends of gasoline and
ethanol up to the maximum percent of denatured ethanol by volume authorized under
the waiver.
(b) The minimum ethanol biofuel requirement in subdivision 1, paragraph (a), clause
(2), or subdivision 1a, paragraph (a), clause (2), (1), item (ii), shall, upon the grant of the
federal waiver, be effective the day after the commissioner of commerce publishes notice
in the State Register. In making this determination, the commissioner shall consider the
amount of time required by refiners, retailers, pipeline and distribution terminal companies,
and other fuel suppliers, acting expeditiously, to make the operational and logistical changes
required to supply fuel in compliance with the minimum ethanol biofuel requirement.

    Sec. 62. Minnesota Statutes 2012, section 239.791, subdivision 2b, is amended to read:
    Subd. 2b. Limited liability waiver. No motor fuel shall be deemed to be a defective
product by virtue of the fact that the motor fuel is formulated or blended pursuant to
the requirements of subdivision 1, paragraph (a), clause (2), or subdivision 1a (1), item
(ii), under any theory of liability except for simple or willful negligence or fraud. This
subdivision does not preclude an action for negligent, fraudulent, or willful acts. This
subdivision does not affect a person whose liability arises under chapter 115, water
pollution control; 115A, waste management; 115B, environmental response and liability;
115C, leaking underground storage tanks; or 299J, pipeline safety; under public nuisance
law for damage to the environment or the public health; under any other environmental or
public health law; or under any environmental or public health ordinance or program of a
municipality as defined in section 466.01.

    Sec. 63. Minnesota Statutes 2012, section 239.7911, is amended to read:
239.7911 PETROLEUM REPLACEMENT PROMOTION.
    Subdivision 1. Petroleum replacement goal. The tiered petroleum replacement
goal of the state of Minnesota is that biofuel comprises at least the specified portion of
total gasoline sold or offered for sale in this state by each specified year:
    (1) at least 20 percent of the liquid fuel sold in the state is derived from renewable
sources by December 31, 2015; and
    (2) at least 25 percent of the liquid fuel sold in the state is derived from renewable
sources by December 31, 2025.

(1)
2015
14 percent

(2)
2017
18 percent

(3)
2020
25 percent

(4)
2025
30 percent
    Subd. 2. Promotion of renewable liquid fuels. (a) The commissioner of agriculture,
in consultation with the commissioners of commerce and the Pollution Control Agency,
shall identify and implement activities necessary for the widespread use of renewable
liquid fuels in the state to achieve the goals in subdivision 1. Beginning November
1, 2005, and continuing through 2015, the commissioners, or their designees, shall
work with convene a task force pursuant to section 15.014 that includes representatives
from the renewable fuels industry, petroleum retailers, refiners, automakers, small
engine manufacturers, and other interested groups, to. The task force shall assist the
commissioners in carrying out the activities in paragraph (b) and eliminating barriers to the
use of greater biofuel blends in this state. The task force must coordinate efforts with the
NextGen Energy Board, the biodiesel task force, and the Renewable Energy Roundtable
and develop annual recommendations for administrative and legislative action.
    (b) The activities of the commissioners under this subdivision shall include, but not
be limited to:
    (1) developing recommendations for specific, cost-effective incentives necessary
to expedite the use of greater biofuel blends in this state including, but not limited to,
incentives for retailers to install equipment necessary for dispensing to dispense renewable
liquid fuels to the public;
    (2) expanding the renewable-fuel options available to Minnesota consumers by
obtaining federal approval for the use of E20 and additional blends that contain a greater
percentage of ethanol, including but not limited to E30 and E50, as gasoline biofuel;
    (3) developing recommendations for ensuring to ensure that motor vehicles and
small engine equipment have access to an adequate supply of fuel;
    (4) working with the owners and operators of large corporate automotive fleets in the
state to increase their use of renewable fuels; and
    (5) working to maintain an affordable retail price for liquid fuels;
    (6) facilitating the production and use of advanced biofuels in this state; and
    (7) developing procedures for reporting the amount and type of biofuel under
subdivision 1 and section 239.791, subdivision 1, paragraph (c).
    (c) Notwithstanding section 15.014, the task force required under paragraph (a)
expires on December 31, 2015.

    Sec. 64. Minnesota Statutes 2012, section 296A.01, is amended by adding a
subdivision to read:
    Subd. 8b. Biobutanol. "Biobutanol" means isobutyl alcohol produced by
fermenting agriculturally generated organic material that is to be blended with gasoline
and meets either:
    (1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline
for Use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM
for general distribution; or
    (2) in the absence of an ASTM standard specification, the following list of
requirements:
    (i) visually free of sediment and suspended matter;
    (ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient
temperature, whichever is higher;
    (iii) free of any adulterant or contaminant that can render it unacceptable for its
commonly used applications;
    (iv) contains not less than 96 volume percent isobutyl alcohol;
    (v) contains not more than 0.4 volume percent methanol;
    (vi) contains not more than 1.0 volume percent water as determined by ASTM
standard test method E203 or E1064;
    (vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined
by ASTM standard test method D1613;
    (viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters
as determined by ASTM standard test method D381;
    (ix) sulfur content of not more than 30 parts per million as determined by ASTM
standard test method D2622 or D5453; and
    (x) contains not more than four parts per million total inorganic sulfate.

    Sec. 65. Minnesota Statutes 2012, section 583.215, is amended to read:
583.215 EXPIRATION.
Sections 336.9-601, subsections (h) and (i); 550.365; 559.209; 582.039; and 583.20
to 583.32, expire June 30, 2013 2016.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 66. WASTE PESTICIDE REPORTING; 2013, 2014, AND 2015.
Notwithstanding the recording and reporting requirements of Minnesota Statutes,
section 18B.065, subdivision 2a, paragraph (d), persons are not required to record or
report agricultural or nonagricultural waste pesticide collected after the effective date of
this section in 2013, 2014, and 2015. The commissioner of agriculture shall analyze
existing collection data to identify trends that will inform future collection strategies to
better meet the needs and nature of current waste pesticide streams. By January 15, 2015,
the commissioner shall report analysis, recommendations, and proposed policy changes
to this program to legislative committees and divisions with jurisdiction over agriculture
finance and policy.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 67. POLLINATOR REPORT REQUIRED.
No later than January 15, 2014, the commissioner of agriculture must submit
a pollinator report to the legislative committees and divisions with jurisdiction over
agriculture and natural resources. The commissioner of agriculture must develop the
report in consultation with the commissioners of natural resources and the Pollution
Control Agency, the Board of Water and Soil Resources, and representatives of the
University of Minnesota. The report must include, but is not limited to, the following:
(1) a proposal to establish a pollinator bank to preserve pollinator species diversity;
(2) a proposal to efficiently and effectively create and enhance pollinator nesting and
foraging habitat in this state including establishment of pollinator reserves or refuges; and
(3) the process and criteria the commissioner of agriculture would use to perform a
special review of neonicotinoid pesticides registered by the commissioner for use in this
state currently and in the future.

    Sec. 68. REVISOR'S INSTRUCTION.
The revisor of statutes shall renumber Minnesota Statutes, section 18B.01,
subdivision 4a, as subdivision 4b and correct any cross-references.

    Sec. 69. REPEALER.
Minnesota Statutes 2012, sections 18.91, subdivisions 3 and 5; 18B.07, subdivision
6; and 239.791, subdivision 1a, are repealed.

ARTICLE 3
ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS


Section 1. SUMMARY OF APPROPRIATIONS.
    The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2014
2015
Total

General
$
87,641,000
$
92,690,000
$
180,331,000


State Government Special
Revenue
75,000
75,000
150,000

Environmental
68,836,000
68,982,000
137,818,000

Natural Resources
89,906,000
89,606,000
179,512,000

Game and Fish
91,372,000
91,372,000
182,744,000

Remediation
10,596,000
10,596,000
21,192,000

Permanent School
200,000
200,000
400,000

Total
$
348,626,000
$
353,521,000
$
702,147,000


Sec. 2. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.
    The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2014" and "2015" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2014, or
June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
year 2015. "The biennium" is fiscal years 2014 and 2015. Appropriations for the fiscal
year ending June 30, 2013, are effective the day following final enactment.

APPROPRIATIONS

Available for the Year

Ending June 30

2014
2015


Sec. 3. POLLUTION CONTROL AGENCY

Subdivision 1.Total Appropriation
$
84,171,000
$
84,316,000

Appropriations by Fund

2014
2015

General
4,764,000
4,763,000


State Government
Special Revenue
75,000
75,000

Environmental
68,836,000
68,982,000

Remediation
10,496,000
10,496,000
The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.Water
25,453,000
25,454,000

Appropriations by Fund

General
3,737,000
3,737,000


State Government
Special Revenue
75,000
75,000

Environmental
21,641,000
21,642,000
$1,959,000 the first year and $1,959,000
the second year are for grants to delegated
counties to administer the county feedlot
program under Minnesota Statutes, section
116.0711, subdivisions 2 and 3. By January
15, 2016, the commissioner shall submit a
report detailing the results achieved with
this appropriation to the chairs and ranking
minority members at the senate and house
of representatives committees and divisions
with jurisdiction over environment and
natural resources policy and finance. Money
remaining after the first year is available for
the second year.
$740,000 the first year and $740,000 the
second year are from the environmental
fund to address the need for continued
increased activity in the areas of new
technology review, technical assistance
for local governments, and enforcement
under Minnesota Statutes, sections 115.55
to 115.58, and to complete the requirements
of Laws 2003, chapter 128, article 1, section
165.
$400,000 the first year and $400,000
the second year are for the clean water
partnership program. Any unexpended
balance in the first year does not cancel but
is available in the second year. Priority shall
be given to projects preventing impairments
and degradation of lakes, rivers, streams,
and groundwater according to Minnesota
Statutes, section 114D.20, subdivision 2,
clause (4).
$664,000 the first year and $664,000 the
second year are from the environmental
fund for subsurface sewage treatment
system (SSTS) program administration
and community technical assistance and
education, including grants and technical
assistance to communities for water quality
protection. Of this amount, $129,000 each
year is for assistance to counties through
grants for SSTS program administration.
A county receiving a grant from this
appropriation shall submit the results
achieved with the grant to the commissioner
as part of its annual SSTS report. Any
unexpended balance in the first year does not
cancel but is available in the second year.
$105,000 the first year and $105,000 the
second year are from the environmental fund
for registration of wastewater laboratories.
$913,000 the first year and $913,000 the
second year are from the environmental fund
to continue perfluorochemical biomonitoring
in eastern metropolitan communities, as
recommended by the Environmental Health
Tracking and Biomonitoring Advisory Panel,
and address other environmental health
risks, including air quality. Of this amount,
$812,000 the first year and $812,000 the
second year are for transfer to the Department
of Health.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered on or
before June 30, 2015, as grants or contracts
for SSTS's, surface water and groundwater
assessments, total maximum daily loads,
storm water, and water quality protection in
this subdivision are available until June 30,
2018.

Subd. 3.Air
15,031,000
15,201,000

Appropriations by Fund

Environmental
15,031,000
15,201,000
$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.
Up to $150,000 the first year and $150,000
the second year may be transferred from the
environmental fund to the small business
environmental improvement loan account
established in Minnesota Statutes, section
116.993.
$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.
$210,000 the first year and $210,000 the
second year are from the environmental fund
for systematic, localized monitoring efforts
in the state that:
(1) sample ambient air for a period of one to
three months at various sites;
(2) analyze the samples and compare the data
to the agency's fixed air monitoring sites; and
(3) determine whether significant localized
differences exist.
The commissioner, when selecting areas to
monitor, shall give priority to areas where low
income, indigenous American Indians, and
communities of color are disproportionately
impacted by pollution from highway traffic,
air traffic, and industrial sources to assist
with efforts to ensure environmental justice
for those areas. For the purposes of this
paragraph, "environmental justice" means the
fair treatment of people of all races, cultures,
and income levels in the development,
adoption, implementation, and enforcement
of environmental laws and policies.
$690,000 the first year and $690,000 the
second year are from the environmental
fund for emission reduction activities and
grants to small businesses and other nonpoint
emission reduction efforts. Any unexpended
balance in the first year does not cancel but is
available in the second year.

Subd. 4.Land
17,412,000
17,412,000

Appropriations by Fund

Environmental
6,916,000
6,916,000

Remediation
10,496,000
10,496,000
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 agriculture
for purposes of Minnesota Statutes, section
115B.20, subdivision 2, clauses (1), (2),
(3), (6), and (7). At the beginning of each
fiscal year, the two commissioners shall
jointly submit an annual spending plan
to the commissioner of management and
budget that maximizes the utilization of
resources and appropriately allocates the
money between the two departments. This
appropriation is available until June 30, 2015.
$3,616,000 the first year and $3,616,000 the
second year are from the remediation fund for
purposes of the leaking underground storage
tank program to protect the land. These same
annual amounts are transferred from the
petroleum tank fund to the remediation fund.
$252,000 the first year and $252,000 the
second year are from the remediation fund
for transfer to the commissioner of health for
private water supply monitoring and health
assessment costs in areas contaminated
by unpermitted mixed municipal solid
waste disposal facilities and drinking water
advisories and public information activities
for areas contaminated by hazardous releases.


Subd. 5.Environmental Assistance and
Cross-Media
26,275,000
26,249,000

Appropriations by Fund

Environmental
25,248,000
25,223,000

General
1,027,000
1,026,000
$14,250,000 the first year and $14,250,000
the second year are from the environmental
fund for SCORE block grants to counties.
$119,000 the first year and $119,000 the
second year are from the environmental
fund for environmental assistance grants
or loans under Minnesota Statutes, section
115A.0716. Any unencumbered grant and
loan balances in the first year do not cancel
but are available for grants and loans in the
second year.
$89,000 the first year and $89,000 the
second year are from the environmental fund
for duties related to harmful chemicals in
products under Minnesota Statutes, sections
116.9401 to 116.9407. Of this amount,
$57,000 each year is transferred to the
commissioner of health.
$200,000 the first year and $200,000 the
second year are from the environmental
fund for the costs of implementing general
operating permits for feedlots over 1,000
animal units.
$312,000 the first year and $312,000 the
second year are from the general fund and
$188,000 the first year and $188,000 the
second year are from the environmental fund
for Environmental Quality Board operations
and support.
$75,000 the first year and $50,000 the second
year are from the environmental fund for
transfer to the Office of Administrative
Hearings to establish sanitary districts.
$500,000 the first year and $500,000 the
second year are from the general fund for
the Environmental Quality Board to lead
an interagency team to provide technical
assistance regarding the mining, processing,
and transporting of silica sand and develop
the model standards and criteria required
under Minnesota Statutes, section 116C.99.
The agency may transfer a portion of this
appropriation to the commissioners of natural
resources, health, and transportation and to
the Board of Water and Soil Resources for
additional costs of duties related to silica
sand mining in this act.
The commissioner shall prepare and submit
a report to the chairs and ranking minority
members of the senate and house of
representatives committees and divisions
with jurisdiction over the environment and
natural resources by January 15, 2014, with
recommendations for a statewide recycling
refund program for beverage containers that
achieves an 80 percent recycling rate. In
preparing the report, the commissioner shall
consult with stakeholders, including retailers,
collectors, recyclers, local governments, and
consumers on options to increase the current
recycling rate. An assessment of the financial
impact of any recommended program shall
be included in the report.
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.
$315,000 the first year and $315,000 the
second year are from the environmental
fund for the electronic waste program under
Minnesota Statutes, sections 115A.1310 to
115A.1330.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered on
or before June 30, 2015, as contracts or
grants for surface water and groundwater
assessments; environmental assistance
awarded under Minnesota Statutes, section
115A.0716; technical and research assistance
under Minnesota Statutes, section 115A.152;
technical assistance under Minnesota
Statutes, section 115A.52; and pollution
prevention assistance under Minnesota
Statutes, section 115D.04, are available until
June 30, 2017.

Subd. 6.Remediation Fund
The commissioner shall transfer up to
$46,000,000 from the environmental fund to
the remediation fund for the purposes of the
remediation fund under Minnesota Statutes,
section 116.155, subdivision 2.


Sec. 4. NATURAL RESOURCES

Subdivision 1.Total Appropriation
$
236,744,000
$
241,494,000

Appropriations by Fund

2014
2015

General
61,486,000
66,536,000

Natural Resources
83,586,000
83,286,000

Game and Fish
91,372,000
91,372,000

Remediation
100,000
100,000

Permanent School
200,000
200,000
The amounts that may be spent for each
purpose are specified in the following
subdivisions.


Subd. 2.Land and Mineral Resources
Management
6,287,000
6,687,000

Appropriations by Fund

General
1,164,000
1,564,000

Natural Resources
3,472,000
3,472,000

Game and Fish
1,451,000
1,451,000

Permanent School
200,000
200,000
$68,000 the first year and $68,000 the
second year are for minerals cooperative
environmental research, of which $34,000
the first year and $34,000 the second year are
available only as matched by $1 of nonstate
money for each $1 of state money. The
match may be cash or in-kind.
$251,000 the first year and $251,000 the
second year are for iron ore cooperative
research. Of this amount, $200,000 each year
is from the minerals management account
in the natural resources fund. $175,000 the
first year and $175,000 the second year are
available only as matched by $1 of nonstate
money for each $1 of state money. The match
may be cash or in-kind. Any unencumbered
balance from the first year does not cancel
and is available in the second year.
$2,696,000 the first year and $2,696,000
the second year are from the minerals
management account in the natural resources
fund for use as provided in Minnesota
Statutes, section 93.2236, paragraph (c),
for mineral resource management, projects
to enhance future mineral income, and
projects to promote new mineral resource
opportunities.
$200,000 the first year and $200,000 the
second year are from the state forest suspense
account in the permanent school fund to
accelerate land exchanges, land sales, and
commercial leasing of school trust lands and
to identify, evaluate, and lease construction
aggregate located on school trust lands. This
appropriation is to be used for securing
long-term economic return from the
school trust lands consistent with fiduciary
responsibilities and sound natural resources
conservation and management principles.
The appropriations in Laws 2007, chapter 57,
article 1, section 4, subdivision 2, as amended
by Laws 2009, chapter 37, article 1, section
60, and as extended by Laws 2011, First
Special Session chapter 2, article 1, section 4,
subdivision 2, for support of the land records
management system are available until spent.

Subd. 3.Ecological and Water Resources
27,182,000
31,582,000

Appropriations by Fund

General
12,117,000
16,817,000

Natural Resources
11,002,000
10,702,000

Game and Fish
4,063,000
4,063,000
$3,542,000 the first year and $3,242,000 the
second year are from the invasive species
account in the natural resources fund and
$2,906,000 the first year and $3,206,000 the
second year are from the general fund for
management, public awareness, assessment
and monitoring research, and water access
inspection to prevent the spread of invasive
species; management of invasive plants in
public waters; and management of terrestrial
invasive species on state-administered lands.
$5,000,000 the first year and $5,000,000 the
second year are from the water management
account in the natural resources fund for only
the purposes specified in Minnesota Statutes,
section 103G.27, subdivision 2.
$103,000 the first year and $103,000 the
second year are for a grant to the Mississippi
Headwaters Board for up to 50 percent of
the cost of implementing the comprehensive
plan for the upper Mississippi within areas
under the board's jurisdiction.
$10,000 the first year and $10,000 the second
year are for payment to the Leech Lake Band
of Chippewa Indians to implement the band's
portion of the comprehensive plan for the
upper Mississippi.
$264,000 the first year and $264,000 the
second year are for grants for up to 50
percent of the cost of implementation of
the Red River mediation agreement. The
commissioner shall submit a report to the
chairs of the legislative committees having
primary jurisdiction over environment and
natural resources policy and finance on the
accomplishments achieved with the grants
by January 15, 2015.
$1,643,000 the first year and $1,643,000
the second year are from the heritage
enhancement account in the game and
fish fund for only the purposes specified
in Minnesota Statutes, section 297A.94,
paragraph (e), clause (1).
$1,223,000 the first year and $1,223,000 the
second year are from the nongame wildlife
management account in the natural resources
fund for the purpose of nongame wildlife
management. Notwithstanding Minnesota
Statutes, section 290.431, $100,000 the first
year and $100,000 the second year may
be used for nongame wildlife information,
education, and promotion.
$1,600,000 the first year and $6,000,000 the
second year are from the general fund for the
following activities:
(1) increased financial reimbursement
and technical support to soil and water
conservation districts or other local units
of government for groundwater level
monitoring;
(2) additional surface water monitoring and
analysis, including installation of monitoring
gauges;
(3) additional groundwater analysis to
assist with water appropriation permitting
decisions;
(4) additional permit application review
incorporating surface water and groundwater
technical analysis;
(5) enhancement of precipitation data and
analysis to improve the use of irrigation;
(6) enhanced information technology,
including electronic permitting and
integrated data systems; and
(7) increased compliance and monitoring.
Of this amount, $600,000 the first year is for
silica sand rulemaking and is available until
spent.
The commissioner, in cooperation with the
commissioner of agriculture, shall enforce
compliance with aquatic plant management
requirements regulating the control of
aquatic plants with pesticides and removal of
aquatic plants by mechanical means under
Minnesota Statutes, section 103G.615.

Subd. 4.Forest Management
36,860,000
36,810,000

Appropriations by Fund

General
24,450,000
24,400,000

Natural Resources
11,123,000
11,123,000

Game and Fish
1,287,000
1,287,000
$7,145,000 the first year and $7,145,000
the second year are for prevention,
presuppression, and suppression costs of
emergency firefighting and other costs
incurred under Minnesota Statutes, section
88.12. The amount necessary to pay for
presuppression and suppression costs during
the biennium is appropriated from the general
fund.
By January 15 of each year, the commissioner
of natural resources shall submit a report to
the chairs and ranking minority members
of the house and senate committees
and divisions having jurisdiction over
environment and natural resources finance,
identifying all firefighting costs incurred
and reimbursements received in the prior
fiscal year. These appropriations may
not be transferred. Any reimbursement
of firefighting expenditures made to the
commissioner from any source other than
federal mobilizations shall be deposited into
the general fund.
$11,123,000 the first year and $11,123,000
the second year are from the forest
management investment account in the
natural resources fund for only the purposes
specified in Minnesota Statutes, section
89.039, subdivision 2.
$1,287,000 the first year and $1,287,000
the second year are from the heritage
enhancement account in the game and fish
fund to advance ecological classification
systems (ECS) scientific management tools
for forest and invasive species management.
$580,000 the first year and $580,000 the
second year are for the Forest Resources
Council for implementation of the
Sustainable Forest Resources Act.
$250,000 the first year and $250,000 the
second year are for the FORIST system.
$50,000 the first year is for development of
a plan and recommendations, in consultation
with the University of Minnesota,
Department of Forest Resources, on utilizing
the state forest nurseries to: ensure the
long-term availability of ecologically
appropriate and genetically diverse native
forest seed and seedlings to support state
conservation projects and initiatives;
protect the genetic fitness and resilience of
native forest ecosystems; and support tree
improvement research to address evolving
pressures such as invasive species and
climate change. By December 31, 2013,
the commissioner shall submit a report with
the plan and recommendations to the chairs
and ranking minority members of the senate
and house of representatives committees
and divisions with jurisdiction over natural
resources. The report shall address funding
to improve state forest nursery and tree
improvement capabilities. The report shall
also provide updated recommendations from
those contained in the budget and financial
plan required under Laws 2011, First Special
Session chapter 2, article 4, section 30.
The general fund base budget for forest
management in fiscal year 2016 and
thereafter is $23,850,000.

Subd. 5.Parks and Trails Management
67,802,000
67,802,000

Appropriations by Fund

2014
2015

General
19,780,000
19,780,000

Natural Resources
45,763,000
45,763,000

Game and Fish
2,259,000
2,259,000
$1,075,000 the first year and $1,075,000 the
second year are from the water recreation
account in the natural resources fund for
enhancing public water access facilities
and to prevent the spread of aquatic
invasive species, including inspection and
decontamination programs. Of the amount in
the first year, $300,000 is for construction of
restroom facilities at the public water access
for Crane Lake on Handberg Road and is
available until spent. This appropriation is
not available until the commissioner develops
and implements design standards and best
management practices for public water access
sites that maintain and improve water quality
by avoiding shoreline erosion and runoff.
$5,740,000 the first year and $5,740,000 the
second year are from the natural resources
fund for state trail, park, and recreation area
operations. This appropriation is from the
revenue deposited in the natural resources
fund under Minnesota Statutes, section
297A.94, paragraph (e), clause (2).
$1,005,000 the first year and $1,005,000 the
second year are from the natural resources
fund for trail grants to local units of
government on land to be maintained for at
least 20 years for the purposes of the grants.
This appropriation is from the revenue
deposited in the natural resources fund
under Minnesota Statutes, section 297A.94,
paragraph (e), clause (4). Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
$8,424,000 the first year and $8,424,000
the second year are from the snowmobile
trails and enforcement account in the
natural resources fund for the snowmobile
grants-in-aid program. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
$1,460,000 the first year and $1,460,000 the
second year are from the natural resources
fund for the off-highway vehicle grants-in-aid
program. Of this amount, $1,210,000 each
year is from the all-terrain vehicle account;
$150,000 each year is from the off-highway
motorcycle account; and $100,000 each year
is from the off-road vehicle account. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.
$75,000 the first year and $75,000 the second
year are from the cross-country ski account
in the natural resources fund for grooming
and maintaining cross-country ski trails in
state parks, trails, and recreation areas.
$250,000 the first year and $250,000 the
second year are from the state land and
water conservation account (LAWCON)
in the natural resources fund for priorities
established by the commissioner for eligible
state projects and administrative and
planning activities consistent with Minnesota
Statutes, section 84.0264, and the federal
Land and Water Conservation Fund Act.
Any unencumbered balance does not cancel
at the end of the first year and is available for
the second year.
The appropriation in Laws 2009, chapter
37, article 1, section 4, subdivision 5, from
the natural resources fund from the revenue
deposited under Minnesota Statutes, section
297A.94, paragraph (e), clause (4), for local
grants is available until spent.

Subd. 6.Fish and Wildlife Management
62,775,000
62,775,000

Appropriations by Fund

2014
2015

Natural Resources
1,906,000
1,906,000

Game and Fish
60,869,000
60,869,000
$8,167,000 the first year and $8,167,000
the second year are from the heritage
enhancement account in the game and fish
fund only for activities specified in Minnesota
Statutes, section 297A.94, paragraph (e),
clause (1). Notwithstanding Minnesota
Statutes, section 297A.94, five percent of
this appropriation may be used for expanding
hunter and angler recruitment and retention
activities that emphasize the recruitment and
retention of underrepresented groups.
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.

Subd. 7.Enforcement
35,518,000
35,518,000

Appropriations by Fund

General
3,975,000
3,975,000

Natural Resources
10,000,000
10,000,000

Game and Fish
21,443,000
21,443,000

Remediation
100,000
100,000
$1,718,000 the first year and $1,718,000 the
second year are from the general fund for
enforcement efforts to prevent the spread of
aquatic invasive species.
$1,450,000 the first year and $1,450,000
the second year are from the heritage
enhancement account in the game and
fish fund for only the purposes specified
in Minnesota Statutes, section 297A.94,
paragraph (e), clause (1).
$250,000 the first year and $250,000 the
second year are for the conservation officer
pre-employment education program. Of this
amount, $30,000 each year is from the water
recreation account, $13,000 each year is from
the snowmobile account, and $20,000 each
year is from the all-terrain vehicle account
in the natural resources fund; and $187,000
each year is from the game and fish fund, of
which $17,000 each year is from the heritage
enhancement account.
$1,082,000 the first year and $1,082,000 the
second year are from the water recreation
account in the natural resources fund
for grants to counties for boat and water
safety and to prevent the spread of aquatic
invasive species, including inspection
and decontamination programs. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.
$315,000 the first year and $315,000 the
second year are from the snowmobile
trails and enforcement account in the
natural resources fund for grants to local
law enforcement agencies for snowmobile
enforcement activities. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
$250,000 the first year and $250,000 the
second year are from the all-terrain vehicle
account for grants to qualifying organizations
to assist in safety and environmental
education and monitoring trails on public
lands under Minnesota Statutes, section
84.9011. Grants issued under this paragraph:
(1) must be issued through a formal
agreement with the organization; and
(2) must not be used as a substitute for
traditional spending by the organization.
By December 15 each year, an organization
receiving a grant under this paragraph shall
report to the commissioner with details on
expenditures and outcomes from the grant.
Of this appropriation, $25,000 each year
is for administration of these grants. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.
$510,000 the first year and $510,000
the second year are from the natural
resources fund for grants to county law
enforcement agencies for off-highway
vehicle enforcement and public education
activities based on off-highway vehicle use
in the county. Of this amount, $498,000 each
year is from the all-terrain vehicle account;
$11,000 each year is from the off-highway
motorcycle account; and $1,000 each year
is from the off-road vehicle account. The
county enforcement agencies may use
money received under this appropriation
to make grants to other local enforcement
agencies within the county that have a high
concentration of off-highway vehicle use.
Of this appropriation, $25,000 each year
is for administration of these grants. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.
$720,000 the first year and $720,000 the
second year are for development and
maintenance of a records management
system capable of providing real time data
with global positioning system information.
Of this amount, $360,000 each year is from
the game and fish fund, and $360,000 each
year is from the invasive species account in
the natural resources fund.
Up to $300,000 each year from the invasive
species account is for grants to local units
of government and tribes to prevent the
spread of aquatic invasive species, including
inspection and decontamination programs.

Subd. 8.Operations Support
320,000
320,000

Appropriations by Fund

Natural Resources
320,000
320,000
$320,000 the first year and $320,000 the
second year are from the natural resources
fund for grants to be divided equally between
the city of St. Paul for the Como Park Zoo
and Conservatory and the city of Duluth
for the Duluth Zoo. This appropriation
is from the revenue deposited to the fund
under Minnesota Statutes, section 297A.94,
paragraph (e), clause (5).
The commissioner may spend up to $300,000
per year from the special revenue fund to
improve data analytics. The commissioner
may bill the divisions of the agency an
appropriate share of costs associated with
this project. Any information technology
development, support, or costs necessary for
this project shall be incorporated into the
agency's service level agreement with and
paid to the Office of Enterprise Technology.



Sec. 5. BOARD OF WATER AND SOIL
RESOURCES
$
12,641,000
$
12,641,000
$3,423,000 the first year and $3,423,000 the
second year are for natural resources block
grants to local governments. Grants must be
matched with a combination of local cash or
in-kind contributions. The base grant portion
related to water planning must be matched
by an amount as specified by Minnesota
Statutes, section 103B.3369. The board may
reduce the amount of the natural resources
block grant to a county by an amount equal to
any reduction in the county's general services
allocation to a soil and water conservation
district from the county's previous year
allocation when the board determines that
the reduction was disproportionate.
$3,116,000 the first year and $3,116,000
the second year are for grants requested
by soil and water conservation districts for
general purposes, nonpoint engineering, and
implementation of the reinvest in Minnesota
reserve program. Upon approval of the
board, expenditures may be made from these
appropriations for supplies and services
benefiting soil and water conservation
districts. Any district requesting a grant
under this paragraph shall maintain a Web
page that publishes, at a minimum, its annual
report, annual audit, annual budget, and
meeting notices and minutes.
$1,560,000 the first year and $1,560,000 the
second year are for the following cost-share
programs:
(1) $260,000 each year is for feedlot water
quality grants for feedlots under 300 animal
units in areas where there are impaired
waters;
(2) $1,200,000 each year is for soil and water
conservation district cost-sharing contracts
for erosion control, nutrient and manure
management, vegetative buffers, and water
quality management; and
(3) $100,000 each year is for county
cooperative weed management programs and
to restore native plants in selected invasive
species management sites by providing local
native seeds and plants to landowners for
implementation.
The board shall submit a report to the
commissioner of the Pollution Control
Agency on the status of subsurface sewage
treatment systems in order to ensure a single,
comprehensive inventory of the systems for
planning purposes.
$386,000 the first year and $386,000
the second year are for implementation,
enforcement, and oversight of the Wetland
Conservation Act.
$166,000 the first year and $166,000
the second year are to provide technical
assistance to local drainage management
officials and for the costs of the Drainage
Work Group.
$100,000 the first year and $100,000
the second year are for a grant to the
Red River Basin Commission for water
quality and floodplain management,
including administration of programs. This
appropriation must be matched by nonstate
funds. If the appropriation in either year is
insufficient, the appropriation in the other
year is available for it.
$120,000 the first year and $120,000
the second year are for grants to Area
II Minnesota River Basin Projects for
floodplain management.
Notwithstanding Minnesota Statutes, section
103C.501, the board may shift cost-share
funds in this section and may adjust the
technical and administrative assistance
portion of the grant funds to leverage
federal or other nonstate funds or to address
high-priority needs identified in local water
management plans or comprehensive water
management plans.
$125,000 the first year and $125,000 the
second year are to implement internal control
policies and provide related oversight and
accountability for agency programs.
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. METROPOLITAN COUNCIL
$
8,540,000
$
8,540,000

Appropriations by Fund

2014
2015

General
2,870,000
2,870,000

Natural Resources
5,670,000
5,670,000
$2,870,000 the first year and $2,870,000 the
second year are for metropolitan area regional
parks operation and maintenance according
to Minnesota Statutes, section 473.351.
$5,670,000 the first year and $5,670,000 the
second year are from the natural resources
fund for metropolitan area regional parks
and trails maintenance and operations. This
appropriation is from the revenue deposited
in the natural resources fund under Minnesota
Statutes, section 297A.94, paragraph (e),
clause (3).



Sec. 7. CONSERVATION CORPS
MINNESOTA
$
945,000
$
945,000

Appropriations by Fund

2014
2015

General
455,000
455,000

Natural Resources
490,000
490,000
Conservation Corps Minnesota may receive
money appropriated from the natural
resources fund under this section only
as provided in an agreement with the
commissioner of natural resources.


Sec. 8. ZOOLOGICAL BOARD
$
5,585,000
$
5,585,000

Appropriations by Fund

2014
2015

General
5,425,000
5,425,000

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

    Sec. 9. Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended by
Laws 2010, First Special Session chapter 1, article 6, section 6, is amended to read:

Subd. 6.Transfers In
(a) The amounts appropriated from the
agency indirect costs account in the special
revenue fund are reduced by $328,000 in
fiscal year 2010 and $462,000 in fiscal year
2011, and those amounts must be transferred
to the general fund by June 30, 2011. The
appropriation reductions are onetime.
(b) The commissioner of management and
budget shall transfer $48,000,000 in fiscal
year 2011 from the closed landfill investment
fund in Minnesota Statutes, section 115B.421,
to the general fund. The commissioner shall
transfer $12,000,000 $9,900,000 on July 1
in each of the years, 2014, 2015, 2016, and
2017 $12,550,000 in each of the years 2015
and 2016, and $13,000,000 in 2017 from the
general fund to the closed landfill investment
fund. For each transfer to the closed landfill
investment fund, the commissioner shall
determine the total amount of interest and
other earnings that would have accrued to
the fund if the transfers to the general fund
under this paragraph had not been made and
add this amount to the transfer. The amounts
necessary for these transfers are appropriated
from the general fund in the fiscal years
specified for the transfers.

ARTICLE 4
ENVIRONMENT AND NATURAL RESOURCES STATUTORY CHANGES

    Section 1. Minnesota Statutes 2012, section 13.7411, subdivision 4, is amended to read:
    Subd. 4. Waste management. (a) Product stewardship program. Trade secret
and sales data information submitted to the Pollution Control Agency under the product
stewardship program is classified under section 115A.1415.
(b) Transfer station data. Data received by a county or district from a transfer
station under section 115A.84, subdivision 5, are classified under that section.
(b) (c) Solid waste records. Records of solid waste facilities received, inspected,
or copied by a county pursuant to section 115A.882 are classified pursuant to section
115A.882, subdivision 3.
(c) (d) Customer lists. Customer lists provided to counties or cities by solid waste
collectors are classified under section 115A.93, subdivision 5.

    Sec. 2. Minnesota Statutes 2012, section 84.027, is amended by adding a subdivision
to read:
    Subd. 19. Federal law compliance. Notwithstanding any law to the contrary,
the commissioner may establish, by written order, policies for the use and operation of
other power-driven mobility devices, as defined under Code of Federal Regulations, title
28, section 35.104, on lands and in facilities administered by the commissioner for the
purposes of implementing the Americans with Disabilities Act, United States Code, title
42, section 12101 et seq. These policies are exempt from the rulemaking provisions of
chapter 14 and section 14.386 does not apply.

    Sec. 3. Minnesota Statutes 2012, section 84.415, is amended by adding a subdivision
to read:
    Subd. 7. Existing road right-of-way; fee exemption. A utility license for crossing
public lands or public waters is exempt from all fees specified in this section and in rules
adopted under this section when the utility crossing is on an existing right-of-way of
a public road.
EFFECTIVE DATE.This section is effective July 1, 2014.

    Sec. 4. Minnesota Statutes 2012, section 84.63, is amended to read:
84.63 CONVEYANCE OF INTERESTS IN LANDS TO STATE AND
FEDERAL GOVERNMENTS.
(a) Notwithstanding any existing law to the contrary, the commissioner of natural
resources is hereby authorized on behalf of the state to convey to the United States
or to the state of Minnesota or any of its subdivisions, upon state-owned lands under
the administration of the commissioner of natural resources, permanent or temporary
easements for specified periods or otherwise for trails, highways, roads including
limitation of right of access from the lands to adjacent highways and roads, flowage for
development of fish and game resources, stream protection, flood control, and necessary
appurtenances thereto, such conveyances to be made upon such terms and conditions
including provision for reversion in the event of non-user as the commissioner of natural
resources may determine.
(b) In addition to the fee for the market value of the easement, the commissioner of
natural resources shall assess the applicant the following fees:
(1) an application fee of $2,000 to cover reasonable costs for reviewing the
application and preparing the easement; and
(2) a monitoring fee to cover the projected reasonable costs for monitoring the
construction of the improvement for which the easement was conveyed and preparing
special terms and conditions for the easement. The commissioner must give the applicant
an estimate of the monitoring fee before the applicant submits the fee.
(c) The applicant shall pay these fees to the commissioner of natural resources.
The commissioner shall not issue the easement until the applicant has paid in full the
application fee, the monitoring fee, and the market value payment for the easement.
(d) Upon completion of construction of the improvement for which the easement
was conveyed, the commissioner shall refund the unobligated balance from the monitoring
fee revenue. The commissioner shall not return the application fee, even if the application
is withdrawn or denied.
(e) Money received under paragraph (b) must be deposited in the land management
account in the natural resources fund and is appropriated to the commissioner of natural
resources to cover the reasonable costs incurred for issuing and monitoring easements.
(f) A county or joint county regional railroad authority is exempt from all fees
specified under this section for trail easements on state-owned land.
EFFECTIVE DATE.This section is effective July 1, 2014.

    Sec. 5. [84.633] EXCHANGE OF ROAD EASEMENTS.
    Subdivision 1. Authority. The commissioner of natural resources, on behalf of
the state, may convey a road easement according to this section for access across state
land under the commissioner's jurisdiction in exchange for a road easement for access to
property owned by the United States, the state of Minnesota or any of its subdivisions, or a
private party. The exercise of the easement across state land must not cause significant
adverse environmental or natural resources management impacts. Exchanges under this
section are limited to existing access corridors.
    Subd. 2. Substantially equal acres. The acres covered by the state easement
conveyed by the commissioner must be substantially equal to the acres covered by the
easement being received by the commissioner. For purposes of this section, "substantially
equal" means that the acres do not differ by more than 20 percent. The commissioner's
finding of substantially equal acres is in lieu of an appraisal or other determination of
value of the lands.
    Subd. 3. School trust lands. If the commissioner conveys a road easement over
school trust land to a nongovernmental entity, the term of the road easement is limited
to 50 years. The easement exchanged with the state may be limited to 50 years or may
be perpetual.
    Subd. 4. Terms and conditions. The commissioner may impose terms and
conditions of use as necessary and appropriate under the circumstances. The state may
accept an easement with similar terms and conditions as the state easement.
    Subd. 5. Survey. If the commissioner determines that a survey is required, the
governmental unit or private landowner shall pay to the commissioner a survey fee of not
less than one half of the cost of the survey as determined by the commissioner.
    Subd. 6. Application fee. When a private landowner or governmental unit, except
the state, presents to the commissioner an offer to exchange road easements, the private
landowner or governmental unit shall pay an application fee as provided under section
84.63 to cover reasonable costs for reviewing the application and preparing the easements.
    Subd. 7. Title. If the commissioner determines it is necessary to obtain an opinion
as to the title of the land being encumbered by the easement that will be received by the
commissioner, the governmental unit or private landowner shall submit an abstract of title
or other title information sufficient to determine possession of the land, improvements,
liens, encumbrances, and other matters affecting title.
    Subd. 8. Disposition of fees. (a) Any fee paid under subdivision 5 must be credited
to the account from which expenses are or will be paid and the fee is appropriated for the
expenditures in the same manner as other money in the account.
(b) Any fee paid under subdivision 6 must be deposited in the land management
account in the natural resources fund and is appropriated to the commissioner to cover the
reasonable costs incurred for preparing and issuing the state road easement and accepting
the road easement from the private landowner or governmental entity.

    Sec. 6. Minnesota Statutes 2012, section 84.82, is amended by adding a subdivision to
read:
    Subd. 2a. Nontrail use registration. A snowmobile may be registered for nontrail
use. A snowmobile registered under this subdivision may not be operated on a state or
grant-in-aid snowmobile trail. The fee for a nontrail use registration is $45 for three years.
A nontrail use registration is not transferable. In addition to other penalties prescribed by
law, the penalty for violation of this subdivision is immediate revocation of the nontrail
use registration. The commissioner shall ensure that the registration sticker provided for
limited nontrail use is of a different color and is distinguishable from other snowmobile
registration and state trail stickers provided.

    Sec. 7. Minnesota Statutes 2012, section 84.82, subdivision 3, is amended to read:
    Subd. 3. Fees for registration. (a) The fee for registration of each snowmobile,
other than those used for an agricultural purpose, as defined in section 84.92, subdivision
1c, or those registered by a dealer or manufacturer pursuant to paragraph (b) or (c), or
those registered under subdivision 2a shall be as follows: $75 for three years and $10
for a duplicate or transfer.
(b) The total registration fee for all snowmobiles owned by a dealer and operated for
demonstration or testing purposes shall be $50 per year.
(c) The total registration fee for all snowmobiles owned by a manufacturer and
operated for research, testing, experimentation, or demonstration purposes shall be $150
per year. Dealer and manufacturer registrations are not transferable.
(d) The onetime fee for registration of an exempt snowmobile under subdivision
6a is $6.

    Sec. 8. Minnesota Statutes 2012, section 84.8205, subdivision 1, is amended to read:
    Subdivision 1. Sticker required; fee. (a) A snowmobile that is not registered
in the state under section 84.82, subdivision 3, paragraph (a), or that is registered by a
manufacturer or dealer under section 84.82, subdivision 3, paragraph (b) or (c), may
not be operated on a state or grant-in-aid snowmobile trail unless a snowmobile state
trail sticker is affixed to the snowmobile.
(b) The commissioner of natural resources shall issue a sticker upon application
and payment of a fee. The fee is:
(1) $35 for a one-year snowmobile state trail sticker purchased by an individual; and
(2) $15 for a one-year snowmobile state trail sticker purchased by a dealer or
manufacturer.
(c) In addition to other penalties prescribed by law, an individual in violation of
this subdivision must purchase an annual state trail sticker for a fee of $70. The sticker
is valid from November 1 through June 30. Fees collected under this section, except for
the issuing fee for licensing agents, shall be deposited in the state treasury and credited
to the snowmobile trails and enforcement account in the natural resources fund and,
except for the electronic licensing system commission established by the commissioner
under section 84.027, subdivision 15, must be used for grants-in-aid, trail maintenance,
grooming, and easement acquisition.
    (d) A state trail sticker is not required under this section for:
    (1) a snowmobile that is owned and used by the United States, an Indian tribal
government, another state, or a political subdivision thereof that is exempt from
registration under section 84.82, subdivision 6;
    (2) a collector snowmobile that is operated as provided in a special permit issued for
the collector snowmobile under section 84.82, subdivision 7a;
    (3) a person operating a snowmobile only on the portion of a trail that is owned by
the person or the person's spouse, child, or parent; or
    (4) a snowmobile while being used to groom a state or grant-in-aid trail.

    Sec. 9. Minnesota Statutes 2012, section 84.922, is amended by adding a subdivision
to read:
    Subd. 13. No registration weekend. The commissioner shall designate, by written
order published in the State Register, one weekend each year when, notwithstanding
subdivision 1, an all-terrain vehicle may be operated on state and grant-in-aid all-terrain
vehicle trails without a registration issued under this section. Nonresidents may participate
during the designated weekend without a state trail pass required under section 84.9275.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 10. Minnesota Statutes 2012, section 84.9256, subdivision 1, is amended to read:
    Subdivision 1. Prohibitions on youthful operators. (a) Except for operation on
public road rights-of-way that is permitted under section 84.928 and as provided under
paragraph (j), a driver's license issued by the state or another state is required to operate an
all-terrain vehicle along or on a public road right-of-way.
    (b) A person under 12 years of age shall not:
    (1) make a direct crossing of a public road right-of-way;
    (2) operate an all-terrain vehicle on a public road right-of-way in the state; or
    (3) operate an all-terrain vehicle on public lands or waters, except as provided in
paragraph (f).
    (c) Except for public road rights-of-way of interstate highways, a person 12 years
of age but less than 16 years may make a direct crossing of a public road right-of-way
of a trunk, county state-aid, or county highway or operate on public lands and waters or
state or grant-in-aid trails, only if that person possesses a valid all-terrain vehicle safety
certificate issued by the commissioner and is accompanied by a person 18 years of age or
older who holds a valid driver's license.
    (d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years
old, but less than 16 18 years old, must:
    (1) successfully complete the safety education and training program under section
84.925, subdivision 1, including a riding component; and
    (2) be able to properly reach and control the handle bars and reach the foot pegs
while sitting upright on the seat of the all-terrain vehicle.
    (e) A person at least 11 years of age may take the safety education and training
program and may receive an all-terrain vehicle safety certificate under paragraph (d), but
the certificate is not valid until the person reaches age 12.
    (f) A person at least ten years of age but under 12 years of age may operate an
all-terrain vehicle with an engine capacity up to 90cc on public lands or waters if
accompanied by a parent or legal guardian.
    (g) A person under 15 years of age shall not operate a class 2 all-terrain vehicle.
    (h) A person under the age of 16 may not operate an all-terrain vehicle on public
lands or waters or on state or grant-in-aid trails if the person cannot properly reach and
control the handle bars and reach the foot pegs while sitting upright on the seat of the
all-terrain vehicle.
(i) Notwithstanding paragraph (c), a nonresident at least 12 years old, but less than
16 years old, may make a direct crossing of a public road right-of-way of a trunk, county
state-aid, or county highway or operate an all-terrain vehicle on public lands and waters
or state or grant-in-aid trails if:
(1) the nonresident youth has in possession evidence of completing an all-terrain
safety course offered by the ATV Safety Institute or another state as provided in section
84.925, subdivision 3; and
(2) the nonresident youth is accompanied by a person 18 years of age or older who
holds a valid driver's license.
(j) A person 12 years of age but less than 16 years of age may operate an all-terrain
vehicle on the bank, slope, or ditch of a public road right-of-way as permitted under
section 84.928 if the person:
(1) possesses a valid all-terrain vehicle safety certificate issued by the commissioner;
and
(2) is accompanied by a parent or legal guardian on a separate all-terrain vehicle.

    Sec. 11. Minnesota Statutes 2012, section 84.928, subdivision 1, is amended to read:
    Subdivision 1. Operation on roads and rights-of-way. (a) Unless otherwise
allowed in sections 84.92 to 84.928, a person shall not operate an all-terrain vehicle in
this state along or on the roadway, shoulder, or inside bank or slope of a public road
right-of-way of a trunk, county state-aid, or county highway.
    (b) A person may operate a class 1 all-terrain vehicle in the ditch or the outside
bank or slope of a trunk, county state-aid, or county highway unless prohibited under
paragraph (d) or (f).
    (c) A person may operate a class 2 all-terrain vehicle:
    (1) within the public road right-of-way of a county state-aid or county highway on
the extreme right-hand side of the road and left turns may be made from any part of
the road if it is safe to do so under the prevailing conditions, unless prohibited under
paragraph (d) or (f). A person may operate a class 2 all-terrain vehicle;
    (2) on the bank, slope, or ditch of a public road right-of-way of a trunk, county
state-aid, or county highway but only to access businesses or make trail connections, and
left turns may be made from any part of the road if it is safe to do so under the prevailing
conditions, unless prohibited under paragraph (d) or (f); and
    (3) on the bank or ditch of a public road right-of-way on a designated class 2
all-terrain vehicle trail.
    (d) A road authority as defined under section 160.02, subdivision 25, may after a
public hearing restrict the use of all-terrain vehicles in the public road right-of-way under
its jurisdiction.
    (e) The restrictions in paragraphs (a), (d), (h), (i), and (j) do not apply to the
operation of an all-terrain vehicle on the shoulder, inside bank or slope, ditch, or outside
bank or slope of a trunk, interstate, county state-aid, or county highway:
(1) that is part of a funded grant-in-aid trail; or
(2) when the all-terrain vehicle is owned by or operated under contract with a publicly
or privately owned utility or pipeline company and used for work on utilities or pipelines.
    (f) The commissioner may limit the use of a right-of-way for a period of time if the
commissioner determines that use of the right-of-way causes:
    (1) degradation of vegetation on adjacent public property;
    (2) siltation of waters of the state;
    (3) impairment or enhancement to the act of taking game; or
    (4) a threat to safety of the right-of-way users or to individuals on adjacent public
property.
    The commissioner must notify the road authority as soon as it is known that a closure
will be ordered. The notice must state the reasons and duration of the closure.
    (g) A person may operate an all-terrain vehicle registered for private use and used
for agricultural purposes on a public road right-of-way of a trunk, county state-aid, or
county highway in this state if the all-terrain vehicle is operated on the extreme right-hand
side of the road, and left turns may be made from any part of the road if it is safe to do so
under the prevailing conditions.
    (h) A person shall not operate an all-terrain vehicle within the public road
right-of-way of a trunk, county state-aid, or county highway from April 1 to August 1 in
the agricultural zone unless the vehicle is being used exclusively as transportation to and
from work on agricultural lands. This paragraph does not apply to an agent or employee
of a road authority, as defined in section 160.02, subdivision 25, or the Department of
Natural Resources when performing or exercising official duties or powers.
    (i) A person shall not operate an all-terrain vehicle within the public road right-of-way
of a trunk, county state-aid, or county highway between the hours of one-half hour after
sunset to one-half hour before sunrise, except on the right-hand side of the right-of-way
and in the same direction as the highway traffic on the nearest lane of the adjacent roadway.
    (j) A person shall not operate an all-terrain vehicle at any time within the
right-of-way of an interstate highway or freeway within this state.

    Sec. 12. [84.973] POLLINATOR HABITAT PROGRAM.
(a) The commissioner shall develop best management practices and habitat
restoration guidelines for pollinator habitat enhancement. Best management practices
and guidelines developed under this section must be used for all habitat enhancement or
restoration of lands under the commissioner's control.
(b) Prairie restorations conducted on state lands or with state funds must include
an appropriate diversity of native species selected to provide habitat for pollinators
throughout the growing season.

    Sec. 13. Minnesota Statutes 2012, section 84D.108, subdivision 2, is amended to read:
    Subd. 2. Permit requirements. (a) Service providers must complete invasive
species training provided by the commissioner and pass an examination to qualify for a
permit. Service provider permits are valid for three calendar years.
(b) A $50 application and testing fee is required for service provider permit
applications.
(c) Persons working for a permittee must satisfactorily complete aquatic invasive
species-related training provided by the commissioner, except as provided under
paragraph (d).
(d) A person working for and supervised by a permittee is not required to complete
the training under paragraph (c) if the water-related equipment or other water-related
structures remain on the riparian property owned or controlled by the permittee and are
only removed from and placed into the same water of the state.

    Sec. 14. Minnesota Statutes 2012, section 85.015, subdivision 13, is amended to read:
    Subd. 13. Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton,
Koochiching, and Itasca Counties. (a)(1) The Taconite Trail shall originate at Ely in St.
Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to
McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in
Itasca County and there terminate;
(2) The C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County
and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand
Marais in Cook County, thence northeasterly to the international boundary in the vicinity
of the north shore of Lake Superior, and there terminate;
(3) The Grand Marais to International Falls Trail shall originate in Grand Marais
in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area,
to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to
Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St.
Louis County to International Falls in Koochiching County, and there terminate;
(4) The Matthew Lourey Trail shall originate in Duluth in St. Louis County and
extend southerly to St. Croix Chengwatana State Forest in Pine County.
(b) The trails shall be developed primarily for riding and hiking.
(c) In addition to the authority granted in subdivision 1, lands and interests in lands
for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring
any land or interest in land by eminent domain the commissioner of administration shall
obtain the approval of the governor. The governor shall consult with the Legislative
Advisory Commission before granting approval. Recommendations of the Legislative
Advisory Commission shall be advisory only. Failure or refusal of the commission to
make a recommendation shall be deemed a negative recommendation.

    Sec. 15. Minnesota Statutes 2012, section 85.052, subdivision 6, is amended to read:
    Subd. 6. State park reservation system. (a) The commissioner may, by written
order, develop reasonable reservation policies for campsites and other lodging. These
policies are exempt from rulemaking provisions under chapter 14 and section 14.386
does not apply.
(b) The revenue collected from the state park reservation fee established under
subdivision 5, including interest earned, shall be deposited in the state park account in the
natural resources fund and is annually appropriated to the commissioner for the cost of
the state park reservation system.
EFFECTIVE DATE.This section is effective retroactively from March 1, 2012.

    Sec. 16. Minnesota Statutes 2012, section 85.053, subdivision 8, is amended to read:
    Subd. 8. Military personnel on leave; exemption. (a) A one-day permit, under
subdivision 4, shall be issued without a fee for a motor vehicle being used by a person
who is serving in active military service in any branch or unit of the United States armed
forces and who is stationed outside Minnesota, during the period of active service and for
90 days immediately thereafter, if the person presents the person's current military orders
to the park attendant on duty or other designee of the commissioner.
    (b) For purposes of this section, "active service" has the meaning given under section
190.05, subdivision 5c, when performed outside Minnesota.
(c) A permit is not required for a motor vehicle being used by military personnel or
their dependents who have in their possession the annual pass for United States military
and their dependents issued by the federal government for access to federal recreation sites.

    Sec. 17. Minnesota Statutes 2012, section 85.054, is amended by adding a subdivision
to read:
    Subd. 18. La Salle Lake State Recreation Area. A state park permit is not required
and a fee may not be charged for motor vehicle entry, use, or parking in La Salle Lake
State Recreation Area unless the occupants of the vehicle enter, use, or park in a developed
campground, overnight, or day-use area.

    Sec. 18. Minnesota Statutes 2012, section 85.055, subdivision 1, is amended to read:
    Subdivision 1. Fees. The fee for state park permits for:
(1) an annual use of state parks is $25;
(2) a second or subsequent vehicle state park permit is $18;
(3) a state park permit valid for one day is $5;
(4) a daily vehicle state park permit for groups is $3;
(5) an annual permit for motorcycles is $20;
(6) an employee's state park permit is without charge; and
(7) a state park permit for disabled persons with disabilities under section 85.053,
subdivision 7
, clauses (1) and (2) to (3), is $12.
The fees specified in this subdivision include any sales tax required by state law.

    Sec. 19. Minnesota Statutes 2012, section 85.055, subdivision 2, is amended to read:
    Subd. 2. Fee deposit and appropriation. The fees collected under this section shall
be deposited in the natural resources fund and credited to the state parks account. Money
in the account, except for the electronic licensing system commission established by the
commissioner under section 84.027, subdivision 15, and the state park reservation system
fee established by the commissioner under section 85.052, subdivisions 5 and 6, is available
for appropriation to the commissioner to operate and maintain the state park system.

    Sec. 20. Minnesota Statutes 2012, section 85.42, is amended to read:
85.42 USER FEE; VALIDITY.
(a) The fee for an annual cross-country ski pass is $19 for an individual age 16 and
over. The fee for a three-year pass is $54 for an individual age 16 and over. This fee
shall be collected at the time the pass is purchased. Three-year passes are valid for three
years beginning the previous July 1. Annual passes are valid for one year beginning
the previous July 1.
(b) The cost for a daily cross-country skier pass is $5 for an individual age 16 and
over. This fee shall be collected at the time the pass is purchased. The daily pass is valid
only for the date designated on the pass form.
(c) A pass must be signed by the skier across the front of the pass to be valid and
becomes nontransferable on signing.
(d) The commissioner and agents shall issue a duplicate pass to a person whose pass
is lost or destroyed, using the process established under section 97A.405, subdivision 3,
and rules adopted thereunder. The fee for a duplicate cross-country ski pass is $2.

    Sec. 21. Minnesota Statutes 2012, section 89.0385, is amended to read:
89.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST
CERTIFICATION.
(a) After each fiscal year, The commissioner shall certify the total costs incurred for
forest management, forest improvement, and road improvement on state-managed lands
during that each fiscal year. The commissioner shall distribute forest management receipts
credited to various accounts according to this section.
(b) The amount of the certified costs incurred for forest management activities on
state lands shall be transferred from the account where receipts are deposited to the forest
management investment account in the natural resources fund, except for those costs
certified under section 16A.125. Transfers may occur quarterly, based on quarterly cost and
revenue reports, throughout the fiscal year, with final certification and reconciliation after
each fiscal year. Transfers in a fiscal year cannot exceed receipts credited to the account.

    Sec. 22. Minnesota Statutes 2012, section 90.01, subdivision 4, is amended to read:
    Subd. 4. Scaler. "Scaler" means a qualified bonded person designated by the
commissioner to measure timber and cut forest products.

    Sec. 23. Minnesota Statutes 2012, section 90.01, subdivision 5, is amended to read:
    Subd. 5. State appraiser. "State appraiser" means an employee of the department
designated by the commissioner to appraise state lands, which includes, but is not limited
to, timber and other forest resource products, for volume, quality, and value.

    Sec. 24. Minnesota Statutes 2012, section 90.01, subdivision 6, is amended to read:
    Subd. 6. Timber. "Timber" means trees, shrubs, or woody plants, that will produce
forest products of value whether standing or down, and including but not limited to logs,
sawlogs, posts, poles, bolts, pulpwood, cordwood, fuelwood, woody biomass, lumber,
and woody decorative material.

    Sec. 25. Minnesota Statutes 2012, section 90.01, subdivision 8, is amended to read:
    Subd. 8. Permit holder. "Permit holder" means the person holding who is the
signatory of a permit to cut timber on state lands.

    Sec. 26. Minnesota Statutes 2012, section 90.01, subdivision 11, is amended to read:
    Subd. 11. Effective permit. "Effective permit" means a permit for which the
commissioner has on file full or partial surety security as required by section 90.161, or
90.162, 90.163, or 90.173 or, in the case of permits issued according to section 90.191 or
90.195, the commissioner has received a down payment equal to the full appraised value.

    Sec. 27. Minnesota Statutes 2012, section 90.031, subdivision 4, is amended to read:
    Subd. 4. Timber rules. The Executive Council may formulate and establish, from
time to time, rules it deems advisable for the transaction of timber business of the state,
including approval of the sale of timber on any tract in a lot exceeding 6,000 12,000 cords
in volume when the sale is in the best interests of the state, and may abrogate, modify,
or suspend rules at its pleasure.

    Sec. 28. Minnesota Statutes 2012, section 90.041, subdivision 2, is amended to read:
    Subd. 2. Trespass on state lands. The commissioner may compromise and settle,
with the approval of notification to the attorney general, upon terms the commissioner
deems just, any claim of the state for casual and involuntary trespass upon state lands or
timber; provided that no claim shall be settled for less than the full value of all timber
or other materials taken in casual trespass or the full amount of all actual damage or
loss suffered by the state as a result. Upon request, the commissioner shall advise the
Executive Council of any information acquired by the commissioner concerning any
trespass on state lands, giving all details and names of witnesses and all compromises and
settlements made under this subdivision.

    Sec. 29. Minnesota Statutes 2012, section 90.041, subdivision 5, is amended to read:
    Subd. 5. Forest improvement contracts. The commissioner may contract as part
of the timber sale with the purchaser of state timber at either informal or auction sale
for the following forest improvement work to be done on the land included within the
sale area:. Forest improvement work may include activities relating to preparation of
the site for seeding or planting of seedlings or trees, seeding or planting of seedlings or
trees, and other activities relating related to forest regeneration or deemed necessary by
the commissioner to accomplish forest management objectives, including those related
to water quality protection, trail development, and wildlife habitat enhancement. A
contract issued under this subdivision is not subject to the competitive bidding provisions
of chapter 16C and is exempt from the contract approval provisions of section 16C.05,
subdivision 2
. The bid value received in the sale of the timber and the contract bid
cost of the improvement work may be combined and the total value may be considered
by the commissioner in awarding forest improvement contracts under this section.
The commissioner may refuse to accept any and all bids received and cancel a forest
improvement contract sale for good and sufficient reasons.

    Sec. 30. Minnesota Statutes 2012, section 90.041, subdivision 6, is amended to read:
    Subd. 6. Sale of damaged timber. The commissioner may sell at public auction
timber that has been damaged by fire, windstorm, flood, insect, disease, or other natural
cause on notice that the commissioner considers reasonable when there is a high risk that
the salvage value of the timber would be lost.

    Sec. 31. Minnesota Statutes 2012, section 90.041, subdivision 9, is amended to read:
    Subd. 9. Reoffering unsold timber. To maintain and enhance forest ecosystems on
state forest lands, The commissioner may reoffer timber tracts remaining unsold under the
provisions of section 90.101 below appraised value at public auction with the required
30-day notice under section 90.101, subdivision 2.

    Sec. 32. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
to read:
    Subd. 10. Fees. (a) The commissioner may establish a fee schedule that covers the
commissioner's cost of issuing, administering, and processing various permits, permit
modifications, transfers, assignments, amendments, and other transactions necessary to the
administration of activities under this chapter.
(b) A fee established under this subdivision is not subject to the rulemaking
provisions of chapter 14 and section 14.386 does not apply. The commissioner may
establish fees under this subdivision notwithstanding section 16A.1283.

    Sec. 33. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
to read:
    Subd. 11. Debarment. The commissioner may debar a permit holder if the holder
is convicted in Minnesota at the gross misdemeanor or felony level of criminal willful
trespass, theft, fraud, or antitrust violation involving state, federal, county, or privately
owned timber in Minnesota or convicted in any other state involving similar offenses and
penalties for timber owned in that state. The commissioner shall cancel and repossess the
permit directly involved in the prosecution of the crime. The commissioner shall cancel
and repossess all other state timber permits held by the permit holder after taking from
all security deposits money to which the state is entitled. The commissioner shall return
the remainder of the security deposits, if any, to the permit holder. The debarred permit
holder is prohibited from bidding, possessing, or being employed on any state timber
permit during the period of debarment. The period of debarment is not less than one year
or greater than three years. The duration of the debarment is based on the severity of the
violation, past history of compliance with timber permits, and the amount of loss incurred
by the state arising from violations of timber permits.

    Sec. 34. Minnesota Statutes 2012, section 90.045, is amended to read:
90.045 APPRAISAL STANDARDS.
By July 1, 1983, the commissioner shall establish specific timber appraisal standards
according to which all timber appraisals will be conducted under this chapter. The
standards shall include a specification of the maximum allowable appraisal sampling error,
and including the procedures for tree defect allowance, tract area estimation, product
volume estimation, and product value determination. The timber appraisal standards shall
be included in each edition of the timber sales manual published by the commissioner. In
addition to the duties pursuant to section 90.061, every state appraiser shall work within
the guidelines of the timber appraisal standards. The standards shall not be subject to
the rulemaking provisions of chapter 14.

    Sec. 35. Minnesota Statutes 2012, section 90.061, subdivision 8, is amended to read:
    Subd. 8. Appraiser authority; form of documents. State appraisers are
empowered, with the consent of the commissioner, to perform any scaling, and generally
to supervise the cutting and removal of timber and forest products on or from state lands
so far as may be reasonably necessary to insure compliance with the terms of the permits
or other contracts governing the same and protect the state from loss.
The form of appraisal reports, records, and notes to be kept by state appraisers
shall be as the commissioner prescribes.

    Sec. 36. Minnesota Statutes 2012, section 90.101, subdivision 1, is amended to read:
    Subdivision 1. Sale requirements. The commissioner may sell the timber on any
tract of state land and may determine the number of sections or fractional sections of land
to be included in the permit area covered by any one permit issued to the purchaser of
timber on state lands, or in any one contract or other instrument relating thereto. No
timber shall be sold, except (1) to the highest responsible bidder at public auction, or
(2) if unsold at public auction, the commissioner may offer the timber for private sale
for a period of no more than six months one year after the public auction to any person
responsible bidder who pays the appraised value for the timber. The minimum price shall
be the appraised value as fixed by the report of the state appraiser. Sales may include tracts
in more than one contiguous county or forestry administrative area and shall be held either
in the county or forestry administrative area in which the tract is located or in an adjacent
county or forestry administrative area that is nearest the tract offered for sale or that is
most accessible to potential bidders. In adjoining counties or forestry administrative areas,
sales may not be held less than two hours apart.

    Sec. 37. Minnesota Statutes 2012, section 90.121, is amended to read:
90.121 INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000
CORDS.
(a) The commissioner may sell the timber on any tract of state land in lots not
exceeding 3,000 cords in volume, in the same manner as timber sold at public auction under
section 90.101, and related laws, subject to the following special exceptions and limitations:
(1) the commissioner shall offer all tracts authorized for sale by this section
separately from the sale of tracts of state timber made pursuant to section 90.101;
(2) no bidder may be awarded more than 25 percent of the total tracts offered at the
first round of bidding unless fewer than four tracts are offered, in which case not more than
one tract shall be awarded to one bidder. Any tract not sold at public auction may be offered
for private sale as authorized by section 90.101, subdivision 1, 30 days after the auction to
persons responsible bidders eligible under this section at the appraised value; and
(3) no sale may be made to a person responsible bidder having more than 30
employees. For the purposes of this clause, "employee" means an individual working in
the timber or wood products industry for salary or wages on a full-time or part-time basis.
(b) The auction sale procedure set forth in this section constitutes an additional
alternative timber sale procedure available to the commissioner and is not intended to
replace other authority possessed by the commissioner to sell timber in lots of 3,000
cords or less.
(c) Another bidder or the commissioner may request that the number of employees a
bidder has pursuant to paragraph (a), clause (3), be confirmed by signed affidavit if there is
evidence that the bidder may be ineligible due to exceeding the employee threshold. The
commissioner shall request information from the commissioners of labor and industry and
employment and economic development including the premiums paid by the bidder in
question for workers' compensation insurance coverage for all employees of the bidder.
The commissioner shall review the information submitted by the commissioners of labor
and industry and employment and economic development and make a determination based
on that information as to whether the bidder is eligible. A bidder is considered eligible and
may participate in intermediate auctions until determined ineligible under this paragraph.

    Sec. 38. Minnesota Statutes 2012, section 90.145, is amended to read:
90.145 PURCHASER QUALIFICATIONS AND, REGISTRATION, AND
REQUIREMENTS.
    Subdivision 1. Purchaser qualifications requirements. (a) In addition to any other
requirements imposed by this chapter, the purchaser of a state timber permit issued under
section 90.151 must meet the requirements in paragraphs (b) to (d) (e).
(b) The purchaser and or the purchaser's agents, employees, subcontractors, and
assigns conducting logging operations on the timber permit must comply with general
industry safety standards for logging adopted by the commissioner of labor and industry
under chapter 182. The commissioner of natural resources shall may require a purchaser
to provide proof of compliance with the general industry safety standards.
(c) The purchaser and or the purchaser's agents, subcontractors, and assigns
conducting logging operations on the timber permit must comply with the mandatory
insurance requirements of chapter 176. The commissioner shall may require a purchaser
to provide a copy of the proof of insurance required by section 176.130 before the start of
harvesting operations on any permit.
(d) Before the start of harvesting operations on any permit, the purchaser must certify
that a foreperson or other designated employee who has a current certificate of completion,
which includes instruction in site-level forest management guidelines or best management
practices, from the Minnesota Logger Education Program (MLEP), the Wisconsin Forest
Industry Safety and Training Alliance (FISTA), or any similar continuous education
program acceptable to the commissioner, is supervising active logging operations.
(e) The purchaser and the purchaser's agents, employees, subcontractors, and assigns
who will be involved with logging or scaling state timber must be in compliance with
this chapter.
    Subd. 2. Purchaser preregistration registration. To facilitate the sale of permits
issued under section 90.151, the commissioner may establish a purchaser preregistration
registration system to verify the qualifications of a person as a responsible bidder to
purchase a timber permit. Any system implemented by the commissioner shall be limited
in scope to only that information that is required for the efficient administration of the
purchaser qualification provisions requirements of this chapter and shall conform with the
requirements of chapter 13. The registration system established under this subdivision is
not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.

    Sec. 39. Minnesota Statutes 2012, section 90.151, subdivision 1, is amended to read:
    Subdivision 1. Issuance; expiration. (a) Following receipt of the down payment
for state timber required under section 90.14 or 90.191, the commissioner shall issue a
numbered permit to the purchaser, in a form approved by the attorney general, by the
terms of which the purchaser shall be authorized to enter upon the land, and to cut and
remove the timber therein described as designated for cutting in the report of the state
appraiser, according to the provisions of this chapter. The permit shall be correctly
dated and executed by the commissioner and signed by the purchaser. If a permit is not
signed by the purchaser within 60 45 days from the date of purchase, the permit cancels
and the down payment for timber required under section 90.14 forfeits to the state. The
commissioner may grant an additional period for the purchaser to sign the permit, not to
exceed five ten business days, provided the purchaser pays a $125 $200 penalty fee.
    (b) The permit shall expire no later than five years after the date of sale as the
commissioner shall specify or as specified under section 90.191, and the timber shall
be cut and removed within the time specified therein. All cut timber, equipment, and
buildings not removed from the land within 90 days after expiration of the permit shall
become the property of the state. If additional time is needed, the permit holder must
request, prior to the expiration date, and may be granted, for good and sufficient reasons,
up to 90 additional days for the completion of skidding, hauling, and removing all
equipment and buildings. All cut timber, equipment, and buildings not removed from the
land after expiration of the permit becomes the property of the state.
    (c) The commissioner may grant an additional period of time not to exceed 120 240
days for the removal of cut timber, equipment, and buildings upon receipt of such a written
request by the permit holder for good and sufficient reasons. The commissioner may grant
a second period of time not to exceed 120 days for the removal of cut timber, equipment,
and buildings upon receipt of a request by the permit holder for hardship reasons only.
The permit holder may combine in the written request under this paragraph the request
for additional time under paragraph (b).

    Sec. 40. Minnesota Statutes 2012, section 90.151, subdivision 2, is amended to read:
    Subd. 2. Permit requirements. The permit shall state the amount of timber
estimated for cutting on the land, the estimated value thereof, and the price at which it is
sold in units of per thousand feet, per cord, per piece, per ton, or by whatever description
sold, and shall specify that all landings of cut products shall be legibly marked with the
assigned permit number. The permit shall provide for the continuous identification
and control of the cut timber from the time of cutting until delivery to the consumer.
The permit shall provide that failure to continuously identify the timber as specified in
the permit constitutes trespass.

    Sec. 41. Minnesota Statutes 2012, section 90.151, subdivision 3, is amended to read:
    Subd. 3. Security provisions. The permit shall contain such provisions as may be
necessary to secure to the state the title of all timber cut thereunder wherever found until
full payment therefor and until all provisions of the permit have been fully complied
with. The permit shall provide that from the date the same becomes effective cutting
commences until the expiration thereof of the permit, including all extensions, the
purchaser and successors in interest shall be liable to the state for the full permit price of
all timber covered thereby, notwithstanding any subsequent damage or injury thereto or
trespass thereon or theft thereof, and without prejudice to the right of the state to pursue
such timber and recover the value thereof anywhere prior to the payment therefor in full to
the state. If an effective permit is forfeited prior to any cutting activity, the purchaser is
liable to the state for a sum equal to the down payment and bid guarantee. Upon recovery
from any person other than the permit holder, the permit holder shall be deemed released
to the extent of the net amount, after deducting all expenses of collecting same, recovered
by the state from such other person.

    Sec. 42. Minnesota Statutes 2012, section 90.151, subdivision 4, is amended to read:
    Subd. 4. Permit terms. Once a permit becomes effective and cutting commences,
the permit holder is liable to the state for the permit price for all timber required to be cut,
including timber not cut. The permit shall provide that all timber sold or designated for
cutting shall be cut without in such a manner so as not to cause damage to other timber;
that the permit holder shall remove all timber authorized and designated to be cut under
the permit; that timber sold by board measure identified in the permit, but later determined
by the commissioner not to be convertible into board the permit's measure, shall be paid
for by the piece or cord or other unit of measure according to the size, species, or value, as
may be determined by the commissioner; and that all timber products, except as specified
by the commissioner, shall be scaled and the final settlement for the timber cut shall be
made on this scale; and that the permit holder shall pay to the state the permit price for
all timber authorized to be cut, including timber not cut.

    Sec. 43. Minnesota Statutes 2012, section 90.151, subdivision 6, is amended to read:
    Subd. 6. Notice and approval required. The permit shall provide that the permit
holder shall not start cutting any state timber nor clear building sites landings nor logging
roads until the commissioner has been notified and has given prior approval to such
cutting operations. Approval shall not be granted until the permit holder has completed
a presale conference with the state appraiser designated to supervise the cutting. The
permit holder shall also give prior notice whenever permit operations are to be temporarily
halted, whenever permit operations are to be resumed, and when permit operations are to
be completed.

    Sec. 44. Minnesota Statutes 2012, section 90.151, subdivision 7, is amended to read:
    Subd. 7. Liability for timber cut in trespass. The permit shall provide that the
permit holder shall pay the permit price value for any timber sold which is negligently
destroyed or damaged by the permit holder in cutting or removing other timber sold. If the
permit holder shall cut or remove or negligently destroy or damage any timber upon the
land described, not sold under the permit, except such timber as it may be necessary to cut
and remove in the construction of necessary logging roads and landings approved as to
location and route by the commissioner, such timber shall be deemed to have been cut in
trespass. The permit holder shall be liable for any such timber and recourse may be had
upon the bond security deposit.

    Sec. 45. Minnesota Statutes 2012, section 90.151, subdivision 8, is amended to read:
    Subd. 8. Suspension; cancellation. The permit shall provide that the commissioner
shall have the power to order suspension of all operations under the permit when in the
commissioner's judgment the conditions thereof have not been complied with and any
timber cut or removed during such suspension shall be deemed to have been cut in trespass;
that the commissioner may cancel the permit at any time when in the commissioner's
judgment the conditions thereof have not been complied with due to a breach of the permit
conditions and such cancellation shall constitute repossession of the timber by the state;
that the permit holder shall remove equipment and buildings from such land within 90 days
after such cancellation; that, if the purchaser at any time fails to pay any obligations to the
state under any other permits, any or all permits may be canceled; and that any timber cut
or removed in violation of the terms of the permit or of any law shall constitute trespass.

    Sec. 46. Minnesota Statutes 2012, section 90.151, subdivision 9, is amended to read:
    Subd. 9. Slashings disposal. The permit shall provide that the permit holder shall
burn or otherwise dispose of or treat all slashings or other refuse resulting from cutting
operations, as specified in the permit, in the manner now or hereafter provided by law.

    Sec. 47. Minnesota Statutes 2012, section 90.161, is amended to read:
90.161 SURETY BONDS FOR AUCTION SECURITY DEPOSITS
REQUIRED FOR EFFECTIVE TIMBER PERMITS.
    Subdivision 1. Bond Security deposit required. (a) Except as otherwise provided
by law, the purchaser of any state timber, before any timber permit becomes effective for
any purpose, shall give a good and valid bond security in the form of cash; a certified
check; a cashier's check; a postal, bank, or express money order; a corporate surety bond;
or an irrevocable bank letter of credit to the state of Minnesota equal to the value of all
timber covered or to be covered by the permit, as shown by the sale price bid and the
appraisal report as to quantity, less the amount of any payments pursuant to sections
section 90.14 and 90.163.
(b) The bond security deposit shall be conditioned upon the faithful performance
by the purchaser and successors in interest of all terms and conditions of the permit and
all requirements of law in respect to timber sales. The bond security deposit shall be
approved in writing by the commissioner and filed for record in the commissioner's office.
(c) In the alternative to cash and bond requirements, but upon the same conditions,
A purchaser may post bond for 100 percent of the purchase price and request refund of the
amount of any payments pursuant to sections section 90.14 and 90.163. The commissioner
may credit the refund to any other permit held by the same permit holder if the permit is
delinquent as provided in section 90.181, subdivision 2, or may credit the refund to any
other permit to which the permit holder requests that it be credited.
(d) In the event of a default, the commissioner may take from the deposit the sum of
money to which the state is entitled. The commissioner shall return the remainder of the
deposit, if any, to the person making the deposit. When cash is deposited as security, it
shall be applied to the amount due when a statement is prepared and transmitted to the
permit holder according to section 90.181. Any balance due to the state shall be shown on
the statement and shall be paid as provided in section 90.181. Any amount of the deposit
in excess of the amount determined to be due according to section 90.181 shall be returned
to the permit holder when a final statement is transmitted under section 90.181. All or
part of a cash deposit may be withheld from application to an amount due on a nonfinal
statement if it appears that the total amount due on the permit will exceed the bid price.
(e) If an irrevocable bank letter of credit is provided as security under paragraph
(a), at the written request of the permittee, the commissioner shall annually allow the
amount of the bank letter of credit to be reduced by an amount proportionate to the value
of timber that has been harvested and for which the state has received payment under the
timber permit. The remaining amount of the bank letter of credit after a reduction under
this paragraph must not be less than the value of the timber remaining to be harvested
under the timber permit.
(f) If cash; a certified check; a cashier's check; a personal check; or a postal, bank, or
express money order is provided as security under paragraph (a) and no cutting of state
timber has taken place on the permit, the commissioner may credit the security provided,
less any deposit required under section 90.14, to any other permit to which the permit
holder requests in writing that it be credited.
    Subd. 2. Failure to bond provide security deposit. If bond the security deposit is
not furnished, no harvesting may occur and the down payment for timber 15 percent of the
permit's purchase price shall forfeit to the state when the permit expires.
    Subd. 3. Subrogation. In case of default When security is provided by surety
bond and the permit holder defaults in payment by the permit holder, the surety upon the
bond shall make payment in full to the state of all sums of money due under such permit;
and thereupon such surety shall be deemed immediately subrogated to all the rights of
the state in the timber so paid for; and such subrogated party may pursue the timber and
recover therefor, or have any other appropriate relief in relation thereto which the state
might or could have had if such surety had not made such payment. No assignment or
other writing on the part of the state shall be necessary to make such subrogation effective,
but the certificate signed by and bearing the official seal of the commissioner, showing the
amount of such timber, the lands from which it was cut or upon which it stood, and the
amount paid therefor, shall be prima facie evidence of such facts.
    Subd. 4. Change of security. Prior to any harvest cutting activity, or activities
incidental to the preparation for harvest, a purchaser having posted a bond security deposit
for 100 percent of the purchase price of a sale may request the release of the bond security
and the commissioner shall grant the release upon cash payment to the commissioner of
15 percent of the appraised value of the sale, plus eight percent interest on the appraised
value of the sale from the date of purchase to the date of release while retaining, or upon
repayment of, the permit's down payment and bid guarantee deposit requirement.
    Subd. 5. Return of security. Any security required under this section shall be
returned to the purchaser within 60 days after the final scale.

    Sec. 48. Minnesota Statutes 2012, section 90.162, is amended to read:
90.162 ALTERNATIVE TO BOND OR DEPOSIT REQUIREMENTS
SECURING TIMBER PERMITS WITH CUTTING BLOCKS.
In lieu of the bond or cash security deposit equal to the value of all timber covered
by the permit required by section 90.161 or 90.173, a purchaser of state timber may elect
in writing on a form prescribed by the attorney general to give good and valid surety to the
state of Minnesota equal to the purchase price for any designated cutting block identified
on the permit before the date the purchaser enters upon the land to begin harvesting the
timber on the designated cutting block.

    Sec. 49. [90.164] TIMBER PERMIT DEVELOPMENT OPTION.
With the completion of the presale conference requirement under section 90.151,
subdivision 6, a permit holder may access the permit area in advance of the permit being
fully secured as required by section 90.161, for the express purpose of clearing approved
landings and logging roads. No cutting of state timber except that incidental to the clearing
of approved landings and logging roads is allowed under this section.

    Sec. 50. Minnesota Statutes 2012, section 90.171, is amended to read:
90.171 ASSIGNMENT OF AUCTION TIMBER PERMITS.
Any permit sold at public auction may be assigned upon written approval of the
commissioner. The assignment of any permit shall be signed and acknowledged by the
permit holder. The commissioner shall not approve any assignment until the assignee has
been determined to meet the qualifications of a responsible bidder and has given to the state
a bond security deposit which shall be substantially in the form of, and shall be deemed
of the same effect as, the bond security deposit required of the original purchaser. The
commissioner may accept the an agreement of the assignee and any corporate surety upon
such an original bond, substituting the assignee in the place of such the original purchaser
and continuing such the original bond in full force and effect, as to the assignee. Thereupon
but not otherwise the permit holder making the assignment shall be released from all
liability arising or accruing from actions taken after the assignment became effective.

    Sec. 51. Minnesota Statutes 2012, section 90.181, subdivision 2, is amended to read:
    Subd. 2. Deferred payments. (a) If the amount of the statement is not paid within
30 days of the date thereof, it shall bear interest at the rate determined pursuant to section
16A.124, except that the purchaser shall not be required to pay interest that totals $1 or
less. If the amount is not paid within 60 days, the commissioner shall place the account in
the hands of the commissioner of revenue according to chapter 16D, who shall proceed to
collect the same. When deemed in the best interests of the state, the commissioner shall
take possession of the timber for which an amount is due wherever it may be found and
sell the same informally or at public auction after giving reasonable notice.
(b) The proceeds of the sale shall be applied, first, to the payment of the expenses
of seizure and sale; and, second, to the payment of the amount due for the timber, with
interest; and the surplus, if any, shall belong to the state; and, in case a sufficient amount is
not realized to pay these amounts in full, the balance shall be collected by the attorney
general. Neither payment of the amount, nor the recovery of judgment therefor, nor
satisfaction of the judgment, nor the seizure and sale of timber, shall release the sureties
on any bond security deposit given pursuant to this chapter, or preclude the state from
afterwards claiming that the timber was cut or removed contrary to law and recovering
damages for the trespass thereby committed, or from prosecuting the offender criminally.

    Sec. 52. Minnesota Statutes 2012, section 90.191, subdivision 1, is amended to read:
    Subdivision 1. Sale requirements. The commissioner may sell the timber on any
tract of state land in lots not exceeding 500 cords in volume, without formalities but for
not less than the full appraised value thereof, to any person. No sale shall be made under
this section to any person holding two more than four permits issued hereunder which are
still in effect;. except that (1) a partnership as defined in chapter 323, which may include
spouses but which shall provide evidence that a partnership exists, may be holding two
permits for each of not more than three partners who are actively engaged in the business
of logging or who are the spouses of persons who are actively engaged in the business of
logging with that partnership; and (2) a corporation, a majority of whose shares and voting
power are owned by natural persons related to each other within the fourth degree of
kindred according to the rules of the civil law or their spouses or estates, may be holding
two permits for each of not more than three shareholders who are actively engaged in the
business of logging or who are the spouses of persons who are actively engaged in the
business of logging with that corporation.

    Sec. 53. Minnesota Statutes 2012, section 90.193, is amended to read:
90.193 EXTENSION OF TIMBER PERMITS.
The commissioner may, in the case of an exceptional circumstance beyond the
control of the timber permit holder which makes it unreasonable, impractical, and not
feasible to complete cutting and removal under the permit within the time allowed, grant
an one regular extension of for one year. A written request for the regular extension must
be received by the commissioner before the permit expires. The request must state the
reason the extension is necessary and be signed by the permit holder. An interest rate of
eight percent may be charged for the period of extension.

    Sec. 54. Minnesota Statutes 2012, section 90.195, is amended to read:
90.195 SPECIAL USE AND PRODUCT PERMIT.
(a) 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 damaged trees; (2) other trees that are of negative value under good
forest management practices. The permits may be issued for a period not to exceed one
year. The commissioner shall charge a fee for the permit that shall cover the commissioner's
cost of issuing the permit and as provided under section 90.041, subdivision 10. The fee
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.
(b) The commissioner may issue a special product permit under section 89.42 for
commercial use, which may include incidental volumes of boughs, gravel, hay, biomass,
and other products derived from forest management activities. The value of the products
is the current market value of the products that are being sold in the area. The permit may
be issued for a period not to exceed one year and the commissioner shall charge a fee for
the permit as provided under section 90.041, subdivision 10.
(c) The commissioner may issue a special use permit for incidental volumes of
timber from approved right-of-way road clearing across state land for the purpose of
accessing a state timber permit. The permit shall include the volume and value of timber
to be cleared and may be issued for a period not to exceed one year. A presale conference
as required under section 90.151, subdivision 6, must be completed before the start of
any activities under the permit.

    Sec. 55. Minnesota Statutes 2012, section 90.201, subdivision 2a, is amended to read:
    Subd. 2a. Prompt payment of refunds. Any refund of cash that is due to a permit
holder as determined on a final statement transmitted pursuant to section 90.181 or a
refund of cash made pursuant to section 90.161, subdivision 1, or 90.173, paragraph
(a)
, shall be paid to the permit holder according to section 16A.124 unless the refund is
credited on another permit as provided in this chapter.

    Sec. 56. Minnesota Statutes 2012, section 90.211, is amended to read:
90.211 PURCHASE MONEY, WHEN FORFEITED.
If the holder of an effective permit begins to cut and then fails to cut complete any
part thereof of the permit before the expiration of the permit, the permit holder shall
nevertheless pay the price therefor; but under no circumstances shall timber be cut after
the expiration of the permit or extension thereof.

    Sec. 57. Minnesota Statutes 2012, section 90.221, is amended to read:
90.221 TIMBER SALES RECORDS.
The commissioner shall keep timber sales records, including the description of each
tract of land from which any timber is sold; the date of the report of the state appraisers;
the kind, amount, and value of the timber as shown by such report; the date of the sale;
the price for which the timber was sold; the name of the purchaser; the number, date
of issuance and date of expiration of each permit; the date of any assignment of the
permit; the name of the assignee; the dates of the filing and the amounts of the respective
bonds security deposits by the purchaser and assignee; the names of the sureties thereon;
the amount of timber taken from the land; the date of the report of the scaler and state
appraiser; the names of the scaler and the state appraiser who scaled the timber; and the
amount paid for such timber and the date of payment.

    Sec. 58. Minnesota Statutes 2012, section 90.252, subdivision 1, is amended to read:
    Subdivision 1. Consumer scaling. The commissioner may enter into an agreement
with either a timber sale permittee, or the purchaser of the cut products, or both, so
that the scaling of the cut timber and the collection of the payment for the same can be
consummated by the consumer state. Such an agreement shall be approved as to form and
content by the attorney general and shall provide for a bond or cash in lieu of a bond and
such other safeguards as are necessary to protect the interests of the state. The scaling
and payment collection procedure may be used for any state timber sale, except that no
permittee who is also the consumer shall both cut and scale the timber sold unless such
scaling is supervised by a state scaler.

    Sec. 59. Minnesota Statutes 2012, section 90.301, subdivision 2, is amended to read:
    Subd. 2. Seizure of unlawfully cut timber. The commissioner may take possession
of any timber hereafter unlawfully cut upon or taken from any land owned by the state
wherever found and may sell the same informally or at public auction after giving such
notice as the commissioner deems reasonable and after deducting all the expenses of such
sale the proceeds thereof shall be paid into the state treasury to the credit of the proper
fund; and when any timber so unlawfully cut has been intermingled with any other timber
or property so that it cannot be identified or plainly separated therefrom the commissioner
may so seize and sell the whole quantity so intermingled and, in such case, the whole
quantity of such timber shall be conclusively presumed to have been unlawfully taken
from state land. When the timber unlawfully cut or removed from state land is so seized
and sold, the seizure shall not in any manner relieve the trespasser who cut or removed, or
caused the cutting or removal of, any such timber from the full liability imposed by this
chapter for the trespass so committed, but the net amount realized from such sale shall
be credited on whatever judgment is recovered against such trespasser, if the trespass
was deemed to be casual and involuntary.

    Sec. 60. Minnesota Statutes 2012, section 90.301, subdivision 4, is amended to read:
    Subd. 4. Apprehension of trespassers; reward. The commissioner may offer a
reward to be paid to a person giving to the proper authorities any information that leads to
the conviction of a person violating this chapter. The reward is limited to the greater of
$100 or ten percent of the single stumpage value of any timber unlawfully cut or removed.
The commissioner shall pay the reward from funds appropriated for that purpose or from
receipts from the sale of state timber. A reward shall not be paid to salaried forest officers,
state appraisers, scalers, conservation officers, or licensed peace officers.

    Sec. 61. Minnesota Statutes 2012, section 90.41, subdivision 1, is amended to read:
    Subdivision 1. Violations and penalty. (a) Any state scaler or state appraiser who
shall accept any compensation or gratuity for services as such from any other source
except the state of Minnesota, or any state scaler, or other person authorized to scale state
timber, or state appraiser, who shall make any false report, or insert in any such report any
false statement, or shall make any such report without having examined the land embraced
therein or without having actually been upon the land, or omit from any such report any
statement required by law to be made therein, or who shall fail to report any known trespass
committed upon state lands, or who shall conspire with any other person in any manner, by
act or omission or otherwise, to defraud or unlawfully deprive the state of Minnesota of any
land or timber, or the value thereof, shall be guilty of a felony. Any material discrepancy
between the facts and the scale returned by any such person scaling timber for the state
shall be considered prima facie evidence that such person is guilty of violating this statute.
(b) No such appraiser or scaler who has been once discharged for cause shall ever
again be appointed. This provision shall not apply to resignations voluntarily made by and
accepted from such employees.

    Sec. 62. Minnesota Statutes 2012, section 93.46, is amended by adding a subdivision
to read:
    Subd. 10. Scram mining. "Scram mining" means a mining operation that produces
natural iron ore, natural iron ore concentrates, or taconite ore as described in section 93.20,
subdivisions 12 to 18, from previously developed stockpiles, tailing basins, underground
mine workings, or open pits and that involves no more than 80 acres of land not previously
affected by mining, or more than 80 acres of land not previously affected by mining
if the operator can demonstrate that impacts would be substantially the same as other
scram operations. "Land not previously affected by mining" means land upon which mine
wastes have not been deposited and land from which materials have not been removed in
connection with the production or extraction of metallic minerals.

    Sec. 63. Minnesota Statutes 2012, section 93.481, subdivision 3, is amended to read:
    Subd. 3. Term of permit; amendment. (a) A permit issued by the commissioner
pursuant to this section shall be granted for the term determined necessary by the
commissioner for the completion of the proposed mining operation, including reclamation
or restoration. The term of a scram mining permit for iron ore or taconite shall be
determined in the same manner as a permit to mine for an iron ore or taconite mining
operation.
(b) A permit may be amended upon written application to the commissioner. A
permit amendment application fee must be submitted with the written application. The
permit amendment application fee is ten percent of the amount provided for in subdivision
1, clause (3), for an application for the applicable permit to mine. If the commissioner
determines that the proposed amendment constitutes a substantial change to the permit,
the person applying for the amendment shall publish notice in the same manner as for a
new permit, and a hearing shall be held if written objections are received in the same
manner as for a new permit. An amendment may be granted by the commissioner if the
commissioner determines that lawful requirements have been met.

    Sec. 64. [93.61] DRILL CORE LIBRARY ACCESS.
Consistent with section 13.03, subdivision 3, a person shall not be required to pay a
fee to access exploration data, exploration drill core data, mineral evaluation data, and
mining data stored in the drill core library located in Hibbing, Minnesota, and managed
by the commissioner of natural resources. The library shall be open during regular
business hours.

    Sec. 65. Minnesota Statutes 2012, section 97A.401, subdivision 3, is amended to read:
    Subd. 3. Taking, possessing, and transporting wild animals for certain
purposes. (a) Except as provided in paragraph (b), special permits may be issued without
a fee to take, possess, and transport wild animals as pets and for scientific, educational,
rehabilitative, wildlife disease prevention and control, and exhibition purposes. The
commissioner shall prescribe the conditions for taking, possessing, transporting, and
disposing of the wild animals.
(b) A special permit may not be issued to take or possess wild or native deer for
exhibition, propagation, or as pets.
(c) Nonresident professional wildlife rehabilitators with a federal rehabilitation
permit may possess and transport wildlife affected by oil spills.

    Sec. 66. [103G.217] DRIFTLESS AREA WATER RESOURCES.
(a) Groundwater discharge from natural springs and seepage areas in the driftless
area of Minnesota, corresponding to the area of the state contained within the boundaries
of the Department of Natural Resources Paleozoic Plateau Ecological Section, is vital to
sustaining the coldwater aquatic ecosystems in the region, as well as the recreational,
commercial, agricultural, environmental, aesthetic, and economic well-being of the region.
(b) Within the boundaries of the Department of Natural Resources Paleozoic Plateau
Ecological Section, no excavation or mining of silica sand, including, but not limited to,
digging, excavating, mining, drilling, blasting, tunneling, dredging, stripping, or shafting,
may occur within one mile of a designated trout stream as listed in Minnesota Rules unless
a silica sand mining trout stream setback permit has been issued by the commissioner.
(c) Before issuing a permit under this section, the commissioner shall:
(1) require a project proposer to do a hydrogeological evaluation and collect any
other information necessary to assess potential impacts to hydrogeological features,
including private and public drinking water supply wells; and
(2) identify appropriate setbacks from designated trout streams, springs, and other
hydrogeologic features and any other restrictions necessary to protect trout stream water
quantity, quality, and habitat.
(d) The commissioner may assess the project proposer fees to cover the reasonable
costs of duties performed under this section.
EFFECTIVE DATE.This section is effective the day following final enactment
and applies to new silica sand mining projects and projects for which environmental
review documents have been noticed for public comments after April 30, 2013.

    Sec. 67. Minnesota Statutes 2012, section 103G.265, subdivision 2, is amended to read:
    Subd. 2. Diversion greater than 2,000,000 gallons per day. A water use permit
or a plan that requires a permit or the commissioner's approval, involving a diversion of
waters of the state of more than 2,000,000 gallons per day average in a 30-day period,
to a place outside of this state or from the basin of origin within this state may not be
granted or approved until:
(1) a determination is made by the commissioner that the water remaining in the
basin of origin will be adequate to meet the basin's water resources needs during the
specified life of the diversion project and, for groundwater, the diversion meets the
applicable standards under section 103G.287, subdivision 5; and
(2) approval of the diversion is given by the legislature.

    Sec. 68. Minnesota Statutes 2012, section 103G.265, subdivision 3, is amended to read:
    Subd. 3. Consumptive use of more than 2,000,000 gallons per day. (a) Except
as provided in paragraph (b), A water use permit or a plan that requires a permit or the
commissioner's approval, involving a consumptive use of more than 2,000,000 gallons per
day average in a 30-day period, may not be granted or approved until:
(1) a determination is made by the commissioner that the water remaining in the
basin of origin will be adequate to meet the basin's water resources needs during the
specified life of the consumptive use and, for groundwater, the consumptive use meets the
applicable standards under section 103G.287, subdivision 5; and
(2) approval of the consumptive use is given by the legislature.
(b) Legislative approval under paragraph (a), clause (2), is not required for a
consumptive use in excess of 2,000,000 gallons per day average in a 30-day period for:
(1) a domestic water supply, excluding industrial and commercial uses of a
municipal water supply;
(2) agricultural irrigation and processing of agricultural products;
(3) construction and mine land dewatering;
(4) pollution abatement or remediation; and
(5) fish and wildlife enhancement projects using surface water sources.

    Sec. 69. Minnesota Statutes 2012, section 103G.271, subdivision 1, is amended to read:
    Subdivision 1. Permit required. (a) Except as provided in paragraph (b), the state,
a person, partnership, or association, private or public corporation, county, municipality,
or other political subdivision of the state may not appropriate or use waters of the state
without a water use permit from the commissioner.
(b) This section does not apply to use for a water supply by less than 25 persons
for domestic purposes, except as required by the commissioner under section 103G.287,
subdivision 4, paragraph (b).
(c) The commissioner may issue a state general permit for appropriation of water to a
governmental subdivision or to the general public. The general permit may authorize more
than one project and the appropriation or use of more than one source of water. Water use
permit processing fees and reports required under subdivision 6 and section 103G.281,
subdivision 3
, are required for each project or water source that is included under a general
permit, except that no fee is required for uses totaling less than 15,000,000 gallons annually.

    Sec. 70. Minnesota Statutes 2012, section 103G.271, subdivision 4, is amended to read:
    Subd. 4. Minimum use exemption and local approval of low use permits. (a)
Except for local permits under section 103B.211, subdivision 4, a water use permit is not
required for the appropriation and use of less than a minimum amount prescribed by the
commissioner by rule 10,000 gallons per day and totaling no more than 1,000,000 gallons
per year, except as required by the commissioner under section 103G.287, subdivision 4,
paragraph (b).
(b) Water use permits for more than the minimum amount but less than an
intermediate amount prescribed by rule must be processed and approved at the municipal,
county, or regional level based on rules adopted by the commissioner.
(c) The rules must include provisions for reporting to the commissioner the amounts
of water appropriated under local permits.

    Sec. 71. Minnesota Statutes 2012, section 103G.287, subdivision 1, is amended to read:
    Subdivision 1. Applications for groundwater appropriations; preliminary well
construction approval. (a) Groundwater use permit applications are not complete until
the applicant has supplied:
(1) a water well record as required by section 103I.205, subdivision 9, information
on the subsurface geologic formations penetrated by the well and the formation or aquifer
that will serve as the water source, and geologic information from test holes drilled to
locate the site of the production well;
(2) the maximum daily, seasonal, and annual pumpage rates and volumes being
requested;
(3) information on groundwater quality in terms of the measures of quality
commonly specified for the proposed water use and details on water treatment necessary
for the proposed use;
(4) an inventory of existing wells within 1-1/2 miles of the proposed production well
or within the area of influence, as determined by the commissioner. The inventory must
include information on well locations, depths, geologic formations, depth of the pump or
intake, pumping and nonpumping water levels, and details of well construction; and
(5) the results of an aquifer test completed according to specifications approved by
the commissioner. The test must be conducted at the maximum pumping rate requested
in the application and for a length of time adequate to assess or predict impacts to other
wells and surface water and groundwater resources. The permit applicant is responsible
for all costs related to the aquifer test, including the construction of groundwater and
surface water monitoring installations, and water level readings before, during, and after
the aquifer test; and
(6) the results of any assessments conducted by the commissioner under paragraph (c).
(b) The commissioner may waive an application requirement in this subdivision
if the information provided with the application is adequate to determine whether the
proposed appropriation and use of water is sustainable and will protect ecosystems, water
quality, and the ability of future generations to meet their own needs.
(c) The commissioner shall provide an assessment of a proposed well needing a
groundwater appropriation permit. The commissioner shall evaluate the information
submitted as required under section 103I.205, subdivision 1, paragraph (f), and determine
whether the anticipated appropriation request is likely to meet the applicable requirements
of this chapter. If the appropriation request is likely to meet applicable requirements, the
commissioner shall provide the person submitting the information with a letter providing
preliminary approval to construct the well.

    Sec. 72. Minnesota Statutes 2012, section 103G.287, subdivision 4, is amended to read:
    Subd. 4. Groundwater management areas. (a) The commissioner may designate
groundwater management areas and limit total annual water appropriations and uses within
a designated area to ensure sustainable use of groundwater that protects ecosystems, water
quality, and the ability of future generations to meet their own needs. Water appropriations
and uses within a designated management area must be consistent with a plan approved by
the commissioner that addresses water conservation requirements and water allocation
priorities established in section 103G.261.
(b) Notwithstanding section 103G.271, subdivision 1, paragraph (b), and Minnesota
Rules, within designated groundwater management areas, the commissioner may require
general permits as specified in section 103G.271, subdivision 1, paragraph (c), for water
users using less than 10,000 gallons per day or 1,000,000 gallons per year and water
suppliers serving less than 25 persons for domestic purposes. The commissioner may
waive the requirements under section 103G.281 for general permits issued under this
paragraph, and the fee specified in section 103G.301, subdivision 2, paragraph (c), does
not apply to general permits issued under this paragraph.

    Sec. 73. Minnesota Statutes 2012, section 103G.287, subdivision 5, is amended to read:
    Subd. 5. Interference with other wells Sustainability standard. The
commissioner may issue water use permits for appropriation from groundwater only if
the commissioner determines that the groundwater use is sustainable to supply the needs
of future generations and the proposed use will not harm ecosystems, degrade water, or
reduce water levels beyond the reach of public water supply and private domestic wells
constructed according to Minnesota Rules, chapter 4725.

    Sec. 74. Minnesota Statutes 2012, section 103I.205, subdivision 1, is amended to read:
    Subdivision 1. Notification required. (a) Except as provided in paragraphs (d)
and (e), a person may not construct a well until a notification of the proposed well on a
form prescribed by the commissioner is filed with the commissioner with the filing fee in
section 103I.208, and, when applicable, the person has met the requirements of paragraph
(f). If after filing the well notification an attempt to construct a well is unsuccessful, a
new notification is not required unless the information relating to the successful well
has substantially changed.
(b) The property owner, the property owner's agent, or the well contractor where a
well is to be located must file the well notification with the commissioner.
(c) The well notification under this subdivision preempts local permits and
notifications, and counties or home rule charter or statutory cities may not require a
permit or notification for wells unless the commissioner has delegated the permitting or
notification authority under section 103I.111.
(d) A person who is an individual that constructs a drive point well on property
owned or leased by the individual for farming or agricultural purposes or as the individual's
place of abode must notify the commissioner of the installation and location of the well.
The person must complete the notification form prescribed by the commissioner and mail
it to the commissioner by ten days after the well is completed. A fee may not be charged
for the notification. A person who sells drive point wells at retail must provide buyers
with notification forms and informational materials including requirements regarding
wells, their location, construction, and disclosure. The commissioner must provide the
notification forms and informational materials to the sellers.
(e) A person may not construct a monitoring well until a permit is issued by the
commissioner for the construction. If after obtaining a permit an attempt to construct a
well is unsuccessful, a new permit is not required as long as the initial permit is modified
to indicate the location of the successful well.
(f) When the operation of a well will require an appropriation permit from the
commissioner of natural resources, a person may not begin construction of the well until
the person submits the following information to the commissioner of natural resources:
(1) the location of the well;
(2) the formation or aquifer that will serve as the water source;
(3) the maximum daily, seasonal, and annual pumpage rates and volumes that will
be requested in the appropriation permit; and
(4) other information requested by the commissioner of natural resources that
is necessary to conduct the preliminary assessment required under section 103G.287,
subdivision 1, paragraph (c).
The person may begin construction after receiving preliminary approval from the
commissioner of natural resources.

    Sec. 75. Minnesota Statutes 2012, section 114D.50, subdivision 4, is amended to read:
    Subd. 4. Expenditures; accountability. (a) A project receiving funding from the
clean water fund must meet or exceed the constitutional requirements to protect, enhance,
and restore water quality in lakes, rivers, and streams and to protect groundwater and
drinking water from degradation. Priority may be given to projects that meet more than
one of these requirements. A project receiving funding from the clean water fund shall
include measurable outcomes, as defined in section 3.303, subdivision 10, and a plan for
measuring and evaluating the results. A project must be consistent with current science
and incorporate state-of-the-art technology.
(b) Money from the clean water fund shall be expended to balance the benefits
across all regions and residents of the state.
(c) A state agency or other recipient of a direct appropriation from the clean
water fund must compile and submit all information for proposed and funded projects
or programs, including the proposed measurable outcomes and all other items required
under section 3.303, subdivision 10, to the Legislative Coordinating Commission as soon
as practicable or by January 15 of the applicable fiscal year, whichever comes first. The
Legislative Coordinating Commission must post submitted information on the Web site
required under section 3.303, subdivision 10, as soon as it becomes available. Information
classified as not public under section 13D.05, subdivision 3, paragraph (d), is not required
to be placed on the Web site.
(d) Grants funded by the clean water fund must be implemented according to section
16B.98 and must account for all expenditures. Proposals must specify a process for any
regranting envisioned. Priority for grant proposals must be given to proposals involving
grants that will be competitively awarded.
(e) Money from the clean water fund may only be spent on projects that benefit
Minnesota waters.
(f) When practicable, a direct recipient of an appropriation from the clean water fund
shall prominently display on the recipient's Web site home page the legacy logo required
under Laws 2009, chapter 172, article 5, section 10, as amended by Laws 2010, chapter
361, article 3, section 5, accompanied by the phrase "Click here for more information."
When a person clicks on the legacy logo image, the Web site must direct the person to
a Web page that includes both the contact information that a person may use to obtain
additional information, as well as a link to the Legislative Coordinating Commission Web
site required under section 3.303, subdivision 10.
(g) Future eligibility for money from the clean water fund is contingent upon a state
agency or other recipient satisfying all applicable requirements in this section, as well as
any additional requirements contained in applicable session law.
(h) Money from the clean water fund may be used to leverage federal funds through
execution of formal project partnership agreements with federal agencies consistent with
respective federal agency partnership agreement requirements.

    Sec. 76. [115.84] WASTEWATER LABORATORY CERTIFICATION.
    Subdivision 1. Wastewater laboratory certification required. (a) Laboratories
performing wastewater or water analytical laboratory work, the results of which are
reported to the agency to determine compliance with a national pollutant discharge
elimination system (NPDES) or state disposal system (SDS) permit condition or other
regulatory document, must be certified according to this section.
(b) This section does not apply to:
(1) laboratories that are private and for-profit;
(2) laboratories that perform drinking water analyses; or
(3) laboratories that perform remediation program analyses, such as Superfund or
petroleum analytical work.
(c) Until adoption of rules under subdivision 2, laboratories required to be certified
under this section that submit data to the agency must: (1) register with the agency by
submitting registration information required by the agency; or (2) be certified or accredited
by a recognized authority, such as the commissioner of health under sections 144.97 to
144.99, for the analytical methods required by the agency.
    Subd. 2. Rules. The agency may adopt rules to govern certification of laboratories
according to this section. Notwithstanding section 16A.1283, the agency may adopt
rules establishing fees.
    Subd. 3. Fees. (a) Until the agency adopts a rule establishing fees for certification,
the agency shall collect fees from laboratories registering with the agency, but not
accredited by the commissioner of health under sections 144.97 to 144.99, in amounts
necessary to cover the reasonable costs of the certification program, including reviewing
applications, issuing certifications, and conducting audits and compliance assistance.
(b) Fees under this section must be based on the number, type, and complexity of
analytical methods that laboratories are certified to perform.
(c) Revenue from fees charged by the agency for certification shall be credited to
the environmental fund.
    Subd. 4. Enforcement. (a) The commissioner may deny, suspend, or revoke
wastewater laboratory certification for, but is not limited to, any of the following reasons:
fraud, failure to follow applicable requirements, failure to respond to documented
deficiencies or complete corrective actions necessary to address deficiencies, failure to pay
certification fees, or other violations of federal or state law.
(b) This section and the rules adopted under it may be enforced by any means
provided in section 115.071.

    Sec. 77. Minnesota Statutes 2012, section 115A.1320, subdivision 1, is amended to read:
    Subdivision 1. Duties of the agency. (a) The agency shall administer sections
115A.1310 to 115A.1330.
    (b) The agency shall establish procedures for:
    (1) receipt and maintenance of the registration statements and certifications filed
with the agency under section 115A.1312; and
    (2) making the statements and certifications easily available to manufacturers,
retailers, and members of the public.
    (c) The agency shall annually review the value of the following variables that are
part of the formula used to calculate a manufacturer's annual registration fee under section
115A.1314, subdivision 1:
    (1) the proportion of sales of video display devices sold to households that
manufacturers are required to recycle;
    (2) the estimated per-pound price of recycling covered electronic devices sold to
households;
    (3) the base registration fee; and
    (4) the multiplier established for the weight of covered electronic devices collected
in section 115A.1314, subdivision 1, paragraph (d). If the agency determines that any of
these values must be changed in order to improve the efficiency or effectiveness of the
activities regulated under sections 115A.1312 to 115A.1330, the agency shall submit
recommended changes and the reasons for them to the chairs of the senate and house of
representatives committees with jurisdiction over solid waste policy.
    (d) By January 15 each year, beginning in 2008, the agency shall calculate estimated
sales of video display devices sold to households by each manufacturer during the preceding
program year, based on national sales data, and forward the estimates to the department.
    (e) The agency shall provide a report to the governor and the legislature on the
implementation of sections 115A.1310 to 115A.1330. For each program year, the report
must discuss the total weight of covered electronic devices recycled and a summary
of information in the reports submitted by manufacturers and recyclers under section
115A.1316. The report must also discuss the various collection programs used by
manufacturers to collect covered electronic devices; information regarding covered
electronic devices that are being collected by persons other than registered manufacturers,
collectors, and recyclers; and information about covered electronic devices, if any, being
disposed of in landfills in this state. The report must include a description of enforcement
actions under sections 115A.1310 to 115A.1330. The agency may include in its report
other information received by the agency regarding the implementation of sections
115A.1312 to 115A.1330. The report must be done in conjunction with the report required
under section 115D.10 115A.121.
    (f) The agency shall promote public participation in the activities regulated under
sections 115A.1312 to 115A.1330 through public education and outreach efforts.
    (g) The agency shall enforce sections 115A.1310 to 115A.1330 in the manner
provided by sections 115.071, subdivisions 1, 3, 4, 5, and 6; and 116.072, except for those
provisions enforced by the department, as provided in subdivision 2. The agency may
revoke a registration of a collector or recycler found to have violated sections 115A.1310
to 115A.1330.
    (h) The agency shall facilitate communication between counties, collection and
recycling centers, and manufacturers to ensure that manufacturers are aware of video
display devices available for recycling.
    (i) The agency shall develop a form retailers must use to report information to
manufacturers under section 115A.1318 and post it on the agency's Web site.
    (j) The agency shall post on its Web site the contact information provided by each
manufacturer under section 115A.1318, paragraph (e).

    Sec. 78. [115A.1415] ARCHITECTURAL PAINT; PRODUCT STEWARDSHIP
PROGRAM; STEWARDSHIP PLAN.
    Subdivision 1. Definitions. For purposes of this section, the following terms have
the meanings given:
(1) "architectural paint" means interior and exterior architectural coatings sold in
containers of five gallons or less. Architectural paint does not include industrial coatings,
original equipment coatings, or specialty coatings;
(2) "brand" means a name, symbol, word, or mark that identifies architectural paint,
rather than its components, and attributes the paint to the owner or licensee of the brand as
the producer;
(3) "discarded paint" means architectural paint that is no longer used for its
manufactured purpose;
(4) "producer" means a person that:
(i) has legal ownership of the brand, brand name, or cobrand of architectural paint
sold in the state;
(ii) imports architectural paint branded by a producer that meets subclause (i) when
the producer has no physical presence in the United States;
(iii) if subclauses (i) and (ii) do not apply, makes unbranded architectural paint
that is sold in the state; or
(iv) sells architectural paint at wholesale or retail, does not have legal ownership of
the brand, and elects to fulfill the responsibilities of the producer for the architectural paint
by certifying that election in writing to the commissioner;
(5) "recycling" means the process of collecting and preparing recyclable materials and
reusing the materials in their original form or using them in manufacturing processes that
do not cause the destruction of recyclable materials in a manner that precludes further use;
(6) "retailer" means any person who offers architectural paint for sale at retail in
the state;
(7) "reuse" means donating or selling collected architectural paint back into the
market for its original intended use, when the architectural paint retains its original
purpose and performance characteristics;
(8) "sale" or "sell" means transfer of title of architectural paint for consideration,
including a remote sale conducted through a sales outlet, catalog, Web site, or similar
electronic means. Sale or sell includes a lease through which architectural paint is
provided to a consumer by a producer, wholesaler, or retailer;
(9) "stewardship assessment" means the amount added to the purchase price of
architectural paint sold in the state that is necessary to cover the cost of collecting,
transporting, and processing postconsumer architectural paint by the producer or
stewardship organization pursuant to a product stewardship program;
(10) "stewardship organization" means an organization appointed by one or more
producers to act as an agent on behalf of the producer to design, submit, and administer a
product stewardship program under this section; and
(11) "stewardship plan" means a detailed plan describing the manner in which a
product stewardship program under subdivision 2 will be implemented.
    Subd. 2. Product stewardship program. For architectural paint sold in the state,
producers must, individually or through a stewardship organization, implement and
finance a statewide product stewardship program that manages the architectural paint by
reducing the paint's waste generation, promoting its reuse and recycling, and providing for
negotiation and execution of agreements to collect, transport, and process the architectural
paint for end-of-life recycling and reuse.
    Subd. 3. Requirement for sale. (a) On and after July 1, 2014, or three months after
program plan approval, whichever is sooner, no producer, wholesaler, or retailer may sell
or offer for sale in the state architectural paint unless the paint's producer participates in an
approved stewardship plan, either individually or through a stewardship organization.
(b) Each producer must operate a product stewardship program approved by the
agency or enter into an agreement with a stewardship organization to operate, on the
producer's behalf, a product stewardship program approved by the agency.
    Subd. 4. Requirement to submit plan. (a) On or before March 1, 2014, and before
offering architectural paint for sale in the state, a producer must submit a stewardship
plan to the agency and receive approval of the plan or must submit documentation to the
agency that demonstrates the producer has entered into an agreement with a stewardship
organization to be an active participant in an approved product stewardship program as
described in subdivision 2. A stewardship plan must include all elements required under
subdivision 5.
(b) An amendment to the plan, if determined necessary by the commissioner, must
be submitted every five years.
(c) It is the responsibility of the entities responsible for each stewardship plan to
notify the agency within 30 days of any significant changes or modifications to the plan or
its implementation. Within 30 days of the notification, a written plan revision must be
submitted to the agency for review and approval.
    Subd. 5. Stewardship plan content. A stewardship plan must contain:
(1) certification that the product stewardship program will accept all discarded
paint regardless of which producer produced the architectural paint and its individual
components;
(2) contact information for the individual and the entity submitting the plan, a list of
all producers participating in the product stewardship program, and the brands covered by
the product stewardship program;
(3) a description of the methods by which the discarded paint will be collected in all
areas in the state without relying on end-of-life fees, including an explanation of how the
collection system will be convenient and adequate to serve the needs of small businesses
and residents in both urban and rural areas on an ongoing basis and a discussion of how
the existing household hazardous waste infrastructure will be considered when selecting
collection sites;
(4) a description of how the adequacy of the collection program will be monitored
and maintained;
(5) the names and locations of collectors, transporters, and recyclers that will
manage discarded paint;
(6) a description of how the discarded paint and the paint's components will be
safely and securely transported, tracked, and handled from collection through final
recycling and processing;
(7) a description of the method that will be used to reuse, deconstruct, or recycle
the discarded paint to ensure that the paint's components, to the extent feasible, are
transformed or remanufactured into finished products for use;
(8) a description of the promotion and outreach activities that will be used to
encourage participation in the collection and recycling programs and how the activities'
effectiveness will be evaluated and the program modified, if necessary;
(9) the proposed stewardship assessment. The producer or stewardship organization
shall propose a uniform stewardship assessment for any architectural paint sold in the
state. The proposed stewardship assessment shall be reviewed by an independent auditor
to ensure that the assessment does not exceed the costs of the product stewardship program
and the independent auditor shall recommend an amount for the stewardship assessment.
The agency must approve the stewardship assessment;
(10) evidence of adequate insurance and financial assurance that may be required for
collection, handling, and disposal operations;
(11) five-year performance goals, including an estimate of the percentage of
discarded paint that will be collected, reused, and recycled during each of the first five
years of the stewardship plan. The performance goals must include a specific goal for the
amount of discarded paint that will be collected and recycled and reused during each year
of the plan. The performance goals must be based on:
(i) the most recent collection data available for the state;
(ii) the estimated amount of architectural paint disposed of annually;
(iii) the weight of the architectural paint that is expected to be available for collection
annually; and
(iv) actual collection data from other existing stewardship programs.
The stewardship plan must state the methodology used to determine these goals; and
(12) a discussion of the status of end markets for collected architectural paint and
what, if any, additional end markets are needed to improve the functioning of the program.
    Subd. 6. Consultation required. Each stewardship organization or individual
producer submitting a stewardship plan must consult with stakeholders including
retailers, contractors, collectors, recyclers, local government, and customers during the
development of the plan.
    Subd. 7. Agency review and approval. (a) Within 90 days after receipt of a proposed
stewardship plan, the agency shall determine whether the plan complies with subdivision
4. If the agency approves a plan, the agency shall notify the applicant of the plan approval
in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of
the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must
submit a revised plan to the agency within 60 days after receiving notice of rejection.
(b) Any proposed changes to a stewardship plan must be approved by the agency
in writing.
    Subd. 8. Plan availability. All draft and approved stewardship plans shall be
placed on the agency's Web site for at least 30 days and made available at the agency's
headquarters for public review and comment.
    Subd. 9. Conduct authorized. A producer or stewardship organization that
organizes collection, transport, and processing of architectural paint under this section
is immune from liability for the conduct under state laws relating to antitrust, restraint
of trade, unfair trade practices, and other regulation of trade or commerce only to the
extent that the conduct is necessary to plan and implement the producer's or organization's
chosen organized collection or recycling system.
    Subd. 10. Responsibility of producers. (a) On and after the date of implementation
of a product stewardship program according to this section, a producer of architectural
paint must add the stewardship assessment, as established under subdivision 5, clause (9),
to the cost of architectural paint sold to retailers and distributors in the state by the producer.
(b) Producers of architectural paint or the stewardship organization shall provide
consumers with educational materials regarding the stewardship assessment and product
stewardship program. The materials must include, but are not limited to, information
regarding available end-of-life management options for architectural paint offered through
the product stewardship program and information that notifies consumers that a charge
for the operation of the product stewardship program is included in the purchase price of
architectural paint sold in the state.
    Subd. 11. Responsibility of retailers. (a) On and after July 1, 2014, or three months
after program plan approval, whichever is sooner, no architectural paint may be sold in the
state unless the paint's producer is participating in an approved stewardship plan.
(b) On and after the implementation date of a product stewardship program according
to this section, each retailer or distributor, as applicable, must ensure that the full amount
of the stewardship assessment added to the cost of architectural paint by producers under
subdivision 10 is included in the purchase price of all architectural paint sold in the state.
(c) Any retailer may participate, on a voluntary basis, as a designated collection
point pursuant to a product stewardship program under this section and in accordance
with applicable law.
(d) No retailer or distributor shall be found to be in violation of this subdivision if,
on the date the architectural paint was ordered from the producer or its agent, the producer
was listed as compliant on the agency's Web site according to subdivision 14.
    Subd. 12. Stewardship reports. Beginning October 1, 2015, producers of
architectural paint sold in the state must individually or through a stewardship organization
submit an annual report to the agency describing the product stewardship program. At a
minimum, the report must contain:
(1) a description of the methods used to collect, transport, and process architectural
paint in all regions of the state;
(2) the weight of all architectural paint collected in all regions of the state and a
comparison to the performance goals and recycling rates established in the stewardship
plan;
(3) the amount of unwanted architectural paint collected in the state by method of
disposition, including reuse, recycling, and other methods of processing;
(4) samples of educational materials provided to consumers and an evaluation of the
effectiveness of the materials and the methods used to disseminate the materials; and
(5) an independent financial audit.
    Subd. 13. Data classification. Trade secret and sales information, as defined under
section 13.37, submitted to the agency under this section are private or nonpublic data
under section 13.37.
    Subd. 14. Agency responsibilities. The agency shall provide, on its Web site, a
list of all compliant producers and brands participating in stewardship plans that the
agency has approved and a list of all producers and brands the agency has identified as
noncompliant with this section.
    Subd. 15. Local government responsibilities. (a) A city, county, or other public
agency may choose to participate voluntarily in a product stewardship program.
(b) Cities, counties, and other public agencies are encouraged to work with producers
and stewardship organizations to assist in meeting product stewardship program reuse and
recycling obligations, by providing education and outreach or using other strategies.
(c) A city, county, or other public agency that participates in a product stewardship
program must report for the first year of the program to the agency using the reporting
form provided by the agency on the cost savings as a result of participation and describe
how the savings were used.
    Subd. 16. Administrative fee. (a) The stewardship organization or individual
producer submitting a stewardship plan shall pay an annual administrative fee to the
commissioner. The agency may establish a variable fee based on relevant factors,
including, but not limited to, the portion of architectural paint sold in the state by members
of the organization compared to the total amount of architectural paint sold in the state by
all organizations submitting a stewardship plan.
    (b) Prior to July 1, 2014, and before July 1 annually thereafter, the agency shall
identify the costs it incurs under this section. The agency shall set the fee at an amount
that, when paid by every stewardship organization or individual producer that submits a
stewardship plan, is adequate to reimburse the agency's full costs of administering this
section. The total amount of annual fees collected under this subdivision must not exceed
the amount necessary to reimburse costs incurred by the agency to administer this section.
    (c) A stewardship organization or individual producer subject to this subdivision
must pay the agency's administrative fee under paragraph (a) on or before July 1, 2014 and
annually thereafter. Each year after the initial payment, the annual administrative fee may
not exceed five percent of the aggregate stewardship assessment added to the cost of all
architectural paint sold by producers in the state for the preceding calendar year.
    (d) All fees received under this section shall be deposited to the state treasury and
credited to a product stewardship account in the special revenue fund. For fiscal years
2014 and 2015, the amount collected under this section is annually appropriated to the
agency to implement and enforce this section.

    Sec. 79. [115A.142] REPORT TO LEGISLATURE AND GOVERNOR.
As part of the report required under section 115A.121, the commissioner of the
Pollution Control Agency shall provide a report to the governor and the legislature on
the implementation of section 115A.1415.

    Sec. 80. Minnesota Statutes 2012, section 115B.20, subdivision 6, is amended to read:
    Subd. 6. Report to legislature. Each year By January 31 of each odd-numbered
year, the commissioner of agriculture and the agency shall submit to the senate Finance
Committee, the house of representatives Ways and Means Committee, the Environment
and Natural Resources Committees of the senate and house of representatives, the Finance
Division of the senate Committee on Environment and Natural Resources, and the house
of representatives Committee on Environment and Natural Resources Finance, and the
Environmental Quality Board a report detailing the activities for which money has been
spent pursuant to this section during the previous fiscal year.
EFFECTIVE DATE.This section is effective July 1, 2013.

    Sec. 81. Minnesota Statutes 2012, section 115B.28, subdivision 1, is amended to read:
    Subdivision 1. Duties. In addition to performing duties specified in sections
115B.25 to 115B.37 or in other law, and subject to the limitations on disclosure contained
in section 115B.35, the agency shall:
(1) adopt rules, including rules governing practice and procedure before the agency,
the form and procedure for applications for compensation, and procedures for claims
investigations;
(2) publicize the availability of compensation and application procedures on a
statewide basis with special emphasis on geographical areas surrounding sites identified
by the agency as having releases from a facility where a harmful substance was placed or
came to be located prior to July 1, 1983;
(3) collect, analyze, and make available to the public, in consultation with the
Department of Health, the Pollution Control Agency, the University of Minnesota Medical
and Public Health Schools, and the medical community, data regarding injuries relating to
exposure to harmful substances; and
(4) prepare and transmit by December 31 of each year to the governor and the
legislature an annual legislative report required under section 115B.20, subdivision
6, to include (i) a summary of agency activity under clause (3); (ii) data determined
by the agency from actual cases, including but not limited to number of cases, actual
compensation received by each claimant, types of cases, and types of injuries compensated,
as they relate to types of harmful substances as well as length of exposure, but excluding
identification of the claimants; (iii) all administrative costs associated with the business of
the agency; and (iv) agency recommendations for legislative changes, further study, or any
other recommendation aimed at improving the system of compensation.

    Sec. 82. Minnesota Statutes 2012, section 115B.421, is amended to read:
115B.421 CLOSED LANDFILL INVESTMENT FUND.
The closed landfill investment fund is established in the state treasury. The fund
consists of money credited to the fund, and interest and other earnings on money in the
fund. The commissioner of management and budget shall transfer an initial amount of
$5,100,000 from the balance in the solid waste fund beginning in fiscal year 2000 and
shall continue to transfer $5,100,000 for each following fiscal year, ceasing after 2003.
Beginning July 1, 2003, funds must be deposited as described in section 115B.445. The
fund shall be managed to maximize long-term gain through the State Board of Investment.
Money in the fund may be spent by the commissioner after fiscal year 2020 in accordance
with sections 115B.39 to 115B.444.

    Sec. 83. Minnesota Statutes 2012, section 115C.02, subdivision 4, is amended to read:
    Subd. 4. Corrective action. "Corrective action" means an action taken to minimize,
eliminate, or clean up a release to protect the public health and welfare or the environment.
Corrective action may include, environmental covenants pursuant to chapter 114E, an
affidavit required under section 116.48, subdivision 6, or similar notice of a release
recorded with real property records.

    Sec. 84. Minnesota Statutes 2012, section 115C.08, subdivision 4, is amended to read:
    Subd. 4. Expenditures. (a) Money in the fund may only be spent:
(1) to administer the petroleum tank release cleanup program established in this
chapter;
(2) for agency administrative costs under sections 116.46 to 116.50, sections
115C.03 to 115C.06, and costs of corrective action taken by the agency under section
115C.03, including investigations;
(3) for costs of recovering expenses of corrective actions under section 115C.04;
(4) for training, certification, and rulemaking under sections 116.46 to 116.50;
(5) for agency administrative costs of enforcing rules governing the construction,
installation, operation, and closure of aboveground and underground petroleum storage
tanks;
(6) for reimbursement of the environmental response, compensation, and compliance
account under subdivision 5 and section 115B.26, subdivision 4;
(7) for administrative and staff costs as set by the board to administer the petroleum
tank release program established in this chapter;
(8) for corrective action performance audits under section 115C.093;
(9) for contamination cleanup grants, as provided in paragraph (c);
(10) to assess and remove abandoned underground storage tanks under section
115C.094 and, if a release is discovered, to pay for the specific consultant and contractor
services costs necessary to complete the tank removal project, including, but not limited
to, excavation soil sampling, groundwater sampling, soil disposal, and completion of
an excavation report; and
(11) for property acquisition by the agency when the agency has determined that
purchasing a property where a release has occurred is the most appropriate corrective
action. The to acquire interests in real or personal property, including easements,
environmental covenants under chapter 114E, and leases, that the agency determines are
necessary for corrective actions or to ensure the protectiveness of corrective actions. A
donation of an interest in real property to the agency is not effective until the agency
executes a certificate of acceptance. The state is not liable under this chapter solely as a
result of acquiring an interest in real property under this clause. Agency approval of an
environmental covenant under chapter 114E is sufficient evidence of acceptance of an
interest in real property when the agency is expressly identified as a holder in the covenant.
Acquisition of all properties real property under this clause, except environmental
covenants under chapter 114E, is subject to approval by the board.
(b) Except as provided in paragraph (c), money in the fund is appropriated to the
board to make reimbursements or payments under this section.
(c) In fiscal years 2010 and 2011, $3,700,000 is annually appropriated from the fund
to the commissioner of employment and economic development for contamination cleanup
grants under section 116J.554. Beginning in fiscal year 2012 and each year thereafter,
$6,200,000 is annually appropriated from the fund to the commissioner of employment
and economic development for contamination cleanup grants under section 116J.554. Of
this amount, the commissioner may spend up to $225,000 annually for administration
of the contamination cleanup grant program. The appropriation does not cancel and is
available until expended. The appropriation shall not be withdrawn from the fund nor the
fund balance reduced until the funds are requested by the commissioner of employment
and economic development. The commissioner shall schedule requests for withdrawals
from the fund to minimize the necessity to impose the fee authorized by subdivision 2.
Unless otherwise provided, the appropriation in this paragraph may be used for:
(1) project costs at a qualifying site if a portion of the cleanup costs are attributable
to petroleum contamination or new and used tar and tar-like substances, including but not
limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist
primarily of hydrocarbons and are found in natural deposits in the earth or are distillates,
fractions, or residues from the processing of petroleum crude or petroleum products as
defined in section 296A.01; and
(2) the costs of performing contamination investigation if there is a reasonable basis
to suspect the contamination is attributable to petroleum or new and used tar and tar-like
substances, including but not limited to bitumen and asphalt, but excluding bituminous or
asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits
in the earth or are distillates, fractions, or residues from the processing of petroleum crude
or petroleum products as defined in section 296A.01.

    Sec. 85. Minnesota Statutes 2012, section 115C.08, is amended by adding a subdivision
to read:
    Subd. 6. Disposition of property acquired for corrective action. (a) If the
commissioner determines that real or personal property acquired by the agency for a
corrective action is no longer needed for corrective action purposes, the commissioner may:
(1) request the commissioner of administration to dispose of the property according
to sections 16B.281 to 16B.287, subject to conditions the commissioner of the Pollution
Control Agency determines necessary to protect the public health and welfare and the
environment or to comply with federal law;
(2) transfer the property to another state agency, a political subdivision, or a special
purpose district as provided in paragraph (b); or
(3) if required by federal law, take actions and dispose of the property according
to federal law.
(b) If the commissioner determines that real or personal property acquired by
the agency for a corrective action must be operated, maintained, or monitored after
completion of other phases of the corrective action, the commissioner may transfer
ownership of the property to another state agency, a political subdivision, or a special
purpose district that agrees to accept the property. A state agency, political subdivision,
or special purpose district may accept and implement terms and conditions of a transfer
under this paragraph. The commissioner may set terms and conditions for the transfer
that the commissioner considers reasonable and necessary to ensure proper operation,
maintenance, and monitoring of corrective actions; protect the public health and welfare
and the environment; and comply with applicable federal and state laws and regulations.
The state agency, political subdivision, or special purpose district to which the property is
transferred is not liable under this chapter solely as a result of acquiring the property or
acting in accordance with the terms and conditions of transfer.
(c) The commissioner of administration may charge the agency for actual staff and
other costs related to disposal of the property under paragraph (a), clause (1). The net
proceeds of a sale or other transfer of property under this subdivision by the commissioner
or by the commissioner of administration shall be deposited in the petroleum tank fund or
other appropriate fund. Any share of the proceeds that the agency is required by federal
law or regulation to reimburse to the federal government is appropriated from the fund
to the agency for the purpose. Section 16B.287, subdivision 1, does not apply to real
property that is sold by the commissioner of administration and that was acquired under
subdivision 4, clause (11).

    Sec. 86. Minnesota Statutes 2012, section 115D.10, is amended to read:
115D.10 TOXIC POLLUTION PREVENTION EVALUATION REPORT.
The commissioner, in cooperation with the commission, shall report to
the Environment and Natural Resources Committees of the senate and house of
representatives, the Finance Division of the senate Committee on Environment and
Natural Resources, and the house of representatives Committee on Environment and
Natural Resources Finance on progress being made in achieving the objectives of sections
115D.01 to 115D.12. The report must be submitted by February 1 of each even-numbered
year done in conjunction with the report required under section 115A.121.

    Sec. 87. Minnesota Statutes 2012, section 116.48, subdivision 6, is amended to read:
    Subd. 6. Affidavit. (a) Before transferring ownership of property that the owner
knows contains an underground or aboveground storage tank or contained an underground
or aboveground storage tank that had a release for which no corrective action was taken or
if required by the agency as a condition of a corrective action under chapter 115C, the
owner shall record with the county recorder or registrar of titles of the county in which the
property is located an affidavit containing:
(1) a legal description of the property where the tank is located;
(2) a description of the tank, of the location of the tank, and of any known release
from the tank of a regulated substance to the full extent known or reasonably ascertainable;
(3) a description of any restrictions currently in force on the use of the property
resulting from any release; and
(4) the name of the owner.
(b) The county recorder shall record the affidavits in a manner that will insure
their disclosure in the ordinary course of a title search of the subject property. Before
transferring ownership of property that the owner knows contains an underground or
aboveground storage tank, the owner shall deliver to the purchaser a copy of the affidavit
and any additional information necessary to make the facts in the affidavit accurate as of
the date of transfer of ownership.
(c) Failure to record an affidavit as provided in this subdivision does not affect or
prevent any transfer of ownership of the property.

    Sec. 88. Minnesota Statutes 2012, section 116C.03, subdivision 2, is amended to read:
    Subd. 2. Membership. The members of the board are the director of the Office of
Strategic and Long-Range Planning commissioner of administration, the commissioner
of commerce, the commissioner of the Pollution Control Agency, the commissioner
of natural resources, the commissioner of agriculture, the commissioner of health,
the commissioner of employment and economic development, the commissioner of
transportation, the chair of the Board of Water and Soil Resources, and a representative of
the governor's office designated by the governor. The governor shall appoint five members
from the general public to the board, subject to the advice and consent of the senate.
At least two of the five public members must have knowledge of and be conversant in
water management issues in the state. Notwithstanding the provisions of section 15.06,
subdivision 6
, members of the board may not delegate their powers and responsibilities as
board members to any other person.

    Sec. 89. Minnesota Statutes 2012, section 116C.03, subdivision 4, is amended to read:
    Subd. 4. Support. Staff and consultant support for board activities shall be provided
by the Office of Strategic and Long-Range Planning Pollution Control Agency. This
support shall be provided based upon an annual budget and work program developed by
the board and certified to the commissioner by the chair of the board. The board shall
have the authority to request and require staff support from all other agencies of state
government as needed for the execution of the responsibilities of the board.

    Sec. 90. Minnesota Statutes 2012, section 116C.03, subdivision 5, is amended to read:
    Subd. 5. Administration. The board shall contract with the Office of Strategic and
Long-Range Planning Pollution Control Agency for administrative services necessary to
the board's activities. The services shall include personnel, budget, payroll and contract
administration.

    Sec. 91. [116C.99] SILICA SAND MINING MODEL STANDARDS AND
CRITERIA.
    Subdivision 1. Definitions. The definitions in this subdivision apply to sections
116C.99 to 116C.992.
(a) "Local unit of government" means a county, statutory or home rule charter city,
or town.
(b) "Mining" means excavating silica sand by any process, including digging,
excavating, drilling, blasting, tunneling, dredging, stripping, or by shaft.
(c) "Processing" means washing, cleaning, screening, crushing, filtering, sorting,
processing, stockpiling, and storing silica sand, either at the mining site or at any other site.
(d) "Silica sand" means well-rounded, sand-sized grains of quartz (silicon dioxide),
with very little impurities in terms of other minerals. Specifically, the silica sand for the
purposes of this section is commercially valuable for use in the hydraulic fracturing of
shale to obtain oil and natural gas. Silica sand does not include common rock, stone,
aggregate, gravel, sand with a low quartz level, or silica compounds recovered as a
by-product of metallic mining.
(e) "Silica sand project" means the excavation and mining and processing of silica
sand; the washing, cleaning, screening, crushing, filtering, drying, sorting, stockpiling,
and storing of silica sand, either at the mining site or at any other site; the hauling and
transporting of silica sand; or a facility for transporting silica sand to destinations by rail,
barge, truck, or other means of transportation.
(f) "Temporary storage" means the storage of stock piles of silica sand that have
been transported and await further transport.
(g) "Transporting" means hauling and transporting silica sand, by any carrier:
(1) from the mining site to a processing or transfer site; or
(2) from a processing or storage site to a rail, barge, or transfer site for transporting
to destinations.
    Subd. 2. Standards and criteria. (a) By October 1, 2013, the Environmental
Quality Board, in consultation with local units of government, shall develop model
standards and criteria for mining, processing, and transporting silica sand. These standards
and criteria may be used by local units of government in developing local ordinances. The
standards and criteria shall be different for different geographic areas of the state. The
unique karst conditions and landforms of southeastern Minnesota shall be considered
unique when compared with the flat scoured river terraces and uniform hydrology of the
Minnesota Valley. The standards and criteria developed shall reflect those differences in
varying regions of the state. The standards and criteria must include:
(1) recommendations for setbacks or buffers for mining operation and processing,
including:
(i) any residence or residential zoning district boundary;
(ii) any property line or right-of-way line of any existing or proposed street or
highway;
(iii) ordinary high water levels of public waters;
(iv) bluffs;
(v) designated trout streams, Class 2A water as designated in the rules of the
Pollution Control Agency, or any perennially flowing tributary of a designated trout
stream or Class 2A water;
(vi) calcareous fens;
(vii) wellhead protection areas as defined in section 103I.005;
(viii) critical natural habitat acquired by the commissioner of natural resources
under section 84.944; and
(ix) a natural resource easement paid wholly or in part by public funds;
(2) standards for hours of operation;
(3) groundwater and surface water quality and quantity monitoring and mitigation
plan requirements, including:
(i) applicable groundwater and surface water appropriation permit requirements;
(ii) well sealing requirements;
(iii) annual submission of monitoring well data; and
(iv) storm water runoff rate limits not to exceed two-, ten-, and 100-year storm events;
(4) air monitoring and data submission requirements;
(5) dust control requirements;
(6) noise testing and mitigation plan requirements;
(7) blast monitoring plan requirements;
(8) lighting requirements;
(9) inspection requirements;
(10) containment requirements for silica sand in temporary storage to protect air
and water quality;
(11) containment requirements for chemicals used in processing;
(12) financial assurance requirements;
(13) road and bridge impacts and requirements; and
(14) reclamation plan requirements as required under the rules adopted by the
commissioner of natural resources.
    Subd. 3. Silica sand technical assistance team. By October 1, 2013, the
Environmental Quality Board shall assemble a silica sand technical assistance team
to provide local units of government, at their request, with assistance with ordinance
development, zoning, environmental review and permitting, monitoring, or other issues
arising from silica sand mining and processing operations. The technical assistance team
may be chosen from representatives of the following entities: the Department of Natural
Resources, the Pollution Control Agency, the Board of Water and Soil Resources, the
Department of Health, the Department of Transportation, the University of Minnesota,
the Minnesota State Colleges and Universities, and federal agencies. A majority of the
members must be from a state agency and all members must have expertise in one or more
of the following areas: silica sand mining, hydrology, air quality, water quality, land use,
or other areas related to silica sand mining.
    Subd. 4. Consideration of technical assistance team recommendations. (a) When
the technical assistance team, at the request of the local unit of government, assembles
findings or makes a recommendation related to a proposed silica sand project for the
protection of human health and the environment, a local government unit must consider
the findings or recommendations of the technical assistance team in its approval or denial
of a silica sand project. If the local government unit does not agree with the technical
assistance team's findings and recommendations, the detailed reasons for the disagreement
must be part of the local government unit's record of decision.
(b) Silica sand project proposers must cooperate in providing local government unit
staff, and members of the technical assistance team with information regarding the project.
(c) When a local unit of government requests assistance from the silica sand
technical assistance team for environmental review or permitting of a silica sand project
the local unit of government may assess the project proposer for reasonable costs of the
assistance and use the funds received to reimburse the entity providing that assistance.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 92. [116C.991] ENVIRONMENTAL REVIEW; SILICA SAND PROJECTS.
(a) Until two years after the effective date of this section, an environmental
assessment worksheet must be prepared for any silica sand project that meets or exceeds
the following thresholds, unless the project meets or exceeds the thresholds for an
environmental impact statement under rules of the Environmental Quality Board and an
environmental impact statement must be prepared:
(1) excavates 20 or more acres of land to a mean depth of ten feet or more during its
existence. The local government is the responsible governmental unit; or
(2) is designed to store or is capable of storing more than 7,500 tons of silica sand or
has an annual throughput of more than 200,000 tons of silica sand and is not required to
receive a permit from the Pollution Control Agency. The Pollution Control Agency is the
responsible governmental unit.
(b) In addition to the contents required under statute and rule, an environmental
assessment worksheet completed according to this section must include:
(1) a hydrogeologic investigation assessing potential groundwater and surface water
effects and geologic conditions that could create an increased risk of potentially significant
effects on groundwater and surface water;
(2) for a project with the potential to require a groundwater appropriation permit
from the commissioner of natural resources, an assessment of the water resources
available for appropriation;
(3) an air quality impact assessment that includes an assessment of the potential
effects from airborne particulates and dust;
(4) a traffic impact analysis, including documentation of existing transportation
systems, analysis of the potential effects of the project on transportation, and mitigation
measures to eliminate or minimize adverse impacts;
(5) an assessment of compatibility of the project with other existing uses; and
(6) mitigation measures that could eliminate or minimize any adverse environmental
effects for the project.
EFFECTIVE DATE.This section is effective July 1, 2013, and no permit for
a silica sand project subject to this section may be approved after that date unless the
required environmental review has been completed.

    Sec. 93. [116C.992] TECHNICAL ASSISTANCE, ORDINANCE, AND PERMIT
LIBRARY.
By October 1, 2013, the Environmental Quality Board, in consultation with local
units of government, shall create and maintain a library on local government ordinances
and local government permits that have been approved for regulation of silica sand
projects for reference by local governments.

    Sec. 94. Minnesota Statutes 2012, section 116D.04, is amended by adding a
subdivision to read:
    Subd. 16. Groundwater; environmental assessment worksheets. When an
environmental assessment worksheet is required for a proposed action that has the
potential to require a groundwater appropriation permit from the commissioner of natural
resources, the board shall require that the environmental assessment worksheet include an
assessment of the water resources available for appropriation.

    Sec. 95. Minnesota Statutes 2012, section 282.04, subdivision 1, is amended to read:
    Subdivision 1. Timber sales; land leases and uses. (a) The county auditor, with
terms and conditions set by the county board, may sell timber upon any tract that may be
approved by the natural resources commissioner. The sale of timber shall be made for
cash at not less than the appraised value determined by the county board to the highest
bidder after not less than one week's published notice in an official paper within the
county. Any timber offered at the public sale and not sold may thereafter be sold at private
sale by the county auditor at not less than the appraised value thereof, until the time as
the county board may withdraw the timber from sale. The appraised value of the timber
and the forestry practices to be followed in the cutting of said timber shall be approved
by the commissioner of natural resources.
    (b) Payment of the full sale price of all timber sold on tax-forfeited lands shall be
made in cash at the time of the timber sale, except in the case of oral or sealed bid auction
sales, the down payment shall be no less than 15 percent of the appraised value, and the
balance shall be paid prior to entry. In the case of auction sales that are partitioned and
sold as a single sale with predetermined cutting blocks, the down payment shall be no less
than 15 percent of the appraised price of the entire timber sale which may be held until the
satisfactory completion of the sale or applied in whole or in part to the final cutting block.
The value of each separate block must be paid in full before any cutting may begin in that
block. With the permission of the county contract administrator the purchaser may enter
unpaid blocks and cut necessary timber incidental to developing logging roads as may
be needed to log other blocks provided that no timber may be removed from an unpaid
block until separately scaled and paid for. If payment is provided as specified in this
paragraph as security under paragraph (a) and no cutting has taken place on the contract,
the county auditor may credit the security provided, less any down payment required for
an auction sale under this paragraph, to any other contract issued to the contract holder
by the county under this chapter to which the contract holder requests in writing that it
be credited, provided the request and transfer is made within the same calendar year as
the security was received.
    (c) The county board may sell any timber, including biomass, as appraised or scaled.
Any parcels of land from which timber is to be sold by scale of cut products shall be so
designated in the published notice of sale under paragraph (a), in which case the notice
shall contain a description of the parcels, a statement of the estimated quantity of each
species of timber, and the appraised price of each species of timber for 1,000 feet, per cord
or per piece, as the case may be. In those cases any bids offered over and above the
appraised prices shall be by percentage, the percent bid to be added to the appraised price
of each of the different species of timber advertised on the land. The purchaser of timber
from the parcels shall pay in cash at the time of sale at the rate bid for all of the timber
shown in the notice of sale as estimated to be standing on the land, and in addition shall
pay at the same rate for any additional amounts which the final scale shows to have been
cut or was available for cutting on the land at the time of sale under the terms of the sale.
Where the final scale of cut products shows that less timber was cut or was available
for cutting under terms of the sale than was originally paid for, the excess payment
shall be refunded from the forfeited tax sale fund upon the claim of the purchaser, to be
audited and allowed by the county board as in case of other claims against the county. No
timber, except hardwood pulpwood, may be removed from the parcels of land or other
designated landings until scaled by a person or persons designated by the county board
and approved by the commissioner of natural resources. Landings other than the parcel
of land from which timber is cut may be designated for scaling by the county board by
written agreement with the purchaser of the timber. The county board may, by written
agreement with the purchaser and with a consumer designated by the purchaser when the
timber is sold by the county auditor, and with the approval of the commissioner of natural
resources, accept the consumer's scale of cut products delivered at the consumer's landing.
No timber shall be removed until fully paid for in cash. Small amounts of timber not
exceeding $3,000 in appraised valuation may be sold for not less than the full appraised
value at private sale to individual persons without first publishing notice of sale or calling
for bids, provided that in case of a sale involving a total appraised value of more than $200
the sale shall be made subject to final settlement on the basis of a scale of cut products in
the manner above provided and not more than two of the sales, directly or indirectly to any
individual shall be in effect at one time.
    (d) As directed by the county board, the county auditor may lease tax-forfeited land
to individuals, corporations or organized subdivisions of the state at public or private sale,
and at the prices and under the terms as the county board may prescribe, for use as cottage
and camp sites and for agricultural purposes and for the purpose of taking and removing of
hay, stumpage, sand, gravel, clay, rock, marl, and black dirt from the land, and for garden
sites and other temporary uses provided that no leases shall be for a period to exceed ten
years; provided, further that any leases involving a consideration of more than $12,000 per
year, except to an organized subdivision of the state shall first be offered at public sale in
the manner provided herein for sale of timber. Upon the sale of any leased land, it shall
remain subject to the lease for not to exceed one year from the beginning of the term of the
lease. Any rent paid by the lessee for the portion of the term cut off by the cancellation
shall be refunded from the forfeited tax sale fund upon the claim of the lessee, to be
audited and allowed by the county board as in case of other claims against the county.
    (e) As directed by the county board, the county auditor may lease tax-forfeited land
to individuals, corporations, or organized subdivisions of the state at public or private sale,
at the prices and under the terms as the county board may prescribe, for the purpose
of taking and removing for use for road construction and other purposes tax-forfeited
stockpiled iron-bearing material. The county auditor must determine that the material is
needed and suitable for use in the construction or maintenance of a road, tailings basin,
settling basin, dike, dam, bank fill, or other works on public or private property, and
that the use would be in the best interests of the public. No lease shall exceed ten years.
The use of a stockpile for these purposes must first be approved by the commissioner of
natural resources. The request shall be deemed approved unless the requesting county
is notified to the contrary by the commissioner of natural resources within six months
after receipt of a request for approval for use of a stockpile. Once use of a stockpile has
been approved, the county may continue to lease it for these purposes until approval is
withdrawn by the commissioner of natural resources.
    (f) The county auditor, with the approval of the county board is authorized to grant
permits, licenses, and leases to tax-forfeited lands for the depositing of stripping, lean ores,
tailings, or waste products from mines or ore milling plants, or to use for facilities needed
to recover iron-bearing oxides from tailings basins or stockpiles, or for a buffer area
needed for a mining operation, upon the conditions and for the consideration and for the
period of time, not exceeding 25 years, as the county board may determine. The permits,
licenses, or leases are subject to approval by the commissioner of natural resources.
    (g) Any person who removes any timber from tax-forfeited land before said timber
has been scaled and fully paid for as provided in this subdivision is guilty of a misdemeanor.
    (h) The county auditor may, with the approval of the county board, and without first
offering at public sale, grant leases, for a term not exceeding 25 years, for the removal of
peat and for the production or removal of farm-grown closed-loop biomass as defined in
section 216B.2424, subdivision 1, or short-rotation woody crops from tax-forfeited lands
upon the terms and conditions as the county board may prescribe. Any lease for the removal
of peat, farm-grown closed-loop biomass, or short-rotation woody crops from tax-forfeited
lands must first be reviewed and approved by the commissioner of natural resources if the
lease covers 320 or more acres. No lease for the removal of peat, farm-grown closed-loop
biomass, or short-rotation woody crops shall be made by the county auditor pursuant to this
section without first holding a public hearing on the auditor's intention to lease. One printed
notice in a legal newspaper in the county at least ten days before the hearing, and posted
notice in the courthouse at least 20 days before the hearing shall be given of the hearing.
    (i) Notwithstanding any provision of paragraph (c) to the contrary, the St. Louis
County auditor may, at the discretion of the county board, sell timber to the party who
bids the highest price for all the several kinds of timber, as provided for sales by the
commissioner of natural resources under section 90.14. Bids offered over and above the
appraised price need not be applied proportionately to the appraised price of each of
the different species of timber.
    (j) In lieu of any payment or deposit required in paragraph (b), as directed by the
county board and under terms set by the county board, the county auditor may accept an
irrevocable bank letter of credit in the amount equal to the amount otherwise determined in
paragraph (b). If an irrevocable bank letter of credit is provided under this paragraph, at the
written request of the purchaser, the county may periodically allow the bank letter of credit
to be reduced by an amount proportionate to the value of timber that has been harvested
and for which the county has received payment. The remaining amount of the bank letter
of credit after a reduction under this paragraph must not be less than 20 percent of the value
of the timber purchased. If an irrevocable bank letter of credit or cash deposit is provided
for the down payment required in paragraph (b), and no cutting of timber has taken place
on the contract for which a letter of credit has been provided, the county may allow the
transfer of the letter of credit to any other contract issued to the contract holder by the
county under this chapter to which the contract holder requests in writing that it be credited.

    Sec. 96. [383B.761] DISCONTINUANCE OF HENNEPIN COUNTY SOIL AND
WATER CONSERVATION DISTRICT; TRANSFER OF DUTIES.
    Subdivision 1. Petition. Notwithstanding section 103C.225, the Hennepin County
Board of Commissioners may petition the Minnesota Board of Water and Soil Resources
to discontinue the Hennepin Soil and Water Conservation District and transfer the duties
and authorities of the district to the Hennepin County Board of Commissioners. The
Minnesota Board of Water and Soil Resources has 60 days from the receipt of the petition
to conduct its review. The Minnesota Board of Water and Soil Resources shall make
its determination regarding the petition no later than its first regular meeting following
the 60-day review period.
    Subd. 2. Discontinuance. The Minnesota Board of Water and Soil Resources shall
review the petition submitted under subdivision 1 to determine whether progress toward
the goals identified in section 103C.005 can be achieved by discontinuing the Hennepin
Soil and Water Conservation District and transferring the duties and authorities of the
district to the Hennepin County Board of Commissioners. If the Board of Water and Soil
Resources determines that progress toward the goals identified in section 103C.005 can
be achieved by the discontinuance of the district and the transfer of district duties and
authorities to the Hennepin County Board of Commissioners, the Board of Water and Soil
Resources shall order the discontinuance of the Hennepin Soil and Water Conservation
District. The order shall become effective within 60 days from the date of the order. The
Minnesota Board of Water and Soil Resources may discontinue the Hennepin Soil and
Water Conservation District without a referendum.
    Subd. 3. Transfer of duties and authorities. Upon discontinuance of the
Hennepin Soil and Water Conservation District by the Minnesota Board of Water and Soil
Resources, the Hennepin County Board of Commissioners has the duties and authorities
of a soil and water conservation district. The Hennepin County Board of Commissioners
may assign these duties and responsibilities to the Hennepin County Department of
Environmental Services or other county departments as deemed appropriate by the county
board. All contracts in effect on the date of the discontinuance of the district, to which
the Hennepin Soil and Water Conservation District is a party, remain in force and effect
for the period provided in the contracts. Hennepin County shall be substituted for the
Hennepin Soil and Water Conservation District as party to the contracts and succeed
to the district's rights and duties.
    Subd. 4. Transfer of assets. The Hennepin Conservation District Board of
Supervisors shall transfer the assets of the district to the Hennepin County Board of
Commissioners no later than 60 days from the date of the order. The Hennepin County
Board of Commissioners shall use the transferred assets for purposes of implementing the
transferred duties and authorities.
    Subd. 5. Grants. Upon discontinuance of the Hennepin Soil and Water
Conservation District by the Minnesota Board of Water and Soil Resources, Hennepin
County has the eligibility of a soil and water conservation district for state grant funds.
    Subd. 6. Reestablishment. The Hennepin County Board of Commissioners may
petition the Minnesota Board of Water and Soil Resources to reestablish the Hennepin
Soil and Water Conservation District. Alternatively, the Minnesota Board of Water
and Soil Resources under its authority in section 103C.201, and after giving notice
of corrective actions and time to implement the corrective actions, may reestablish the
Hennepin Soil and Water Conservation District if it determines the goals identified in
section 103C.005 are not being achieved. The Minnesota Board of Water and Soil
Resources may reestablish the Hennepin Soil and Water Conservation District under this
subdivision without a referendum.
EFFECTIVE DATE; LOCAL APPROVAL.This section is effective the day after
the governing body of Hennepin County and its chief clerical officer timely complete their
compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

    Sec. 97. Minnesota Statutes 2012, section 473.846, is amended to read:
473.846 REPORTS REPORT TO LEGISLATURE.
The agency shall submit to the senate and house of representatives committees
having jurisdiction over environment and natural resources separate reports a report
describing the activities for which money for landfill abatement has been spent under
sections section 473.844 and 473.845. The report for section 473.844 expenditures shall be
included in the report required by section 115A.411, and shall include recommendations
on the future management and use of the metropolitan landfill abatement account. By
December 31 of each year, the commissioner shall submit the report for section 473.845
on contingency action trust fund activities.

    Sec. 98. Laws 2010, chapter 361, article 3, section 7, is amended to read:
    Sec. 7. PARKS.
The Minneapolis Park and Recreation Board may acquire all or part of the entire
property known as the Scherer Brothers Lumber Yard for a metropolitan area regional
park and may allocate any future appropriations to the board from the parks and trails
fund to acquire the property. Notwithstanding Minnesota Rules, part 6115.0190, subpart
3 or 5, item E, or 6115.0191, subpart 8, item A, the Minneapolis Park and Recreation
Board is authorized to recreate and restore Hall's Island or such similar island located at
approximately river mile 855 on the Mississippi River, just north of the Plymouth Avenue
bridge, at a project site in Section 15, Township 29 North, Range 24 West, Hennepin
County, Minnesota, on or adjacent to the property known as the Scherer Brothers Lumber
Yard. The commissioner of natural resources shall grant any authorizations, permits, or
permissions necessary to effectuate the project, provided that the project is consistent with
all other standards and guidelines in Minnesota Rules, chapter 6115. If the project is
not constructed within six years of the effective date of this act, the authority provided
in this section to reconstruct Hall's Island expires. The recreation and restoration shall
be coordinated with future efforts to restore habitat along the Mississippi River. Once
recreated and restored, Hall's Island shall remain in public ownership in perpetuity and
shall be maintained as a natural habitat island for birds and other wildlife. Public access
and recreational activities shall be limited to a walking trail to protect the island's wildlife
and habitat.
EFFECTIVE DATE.This section is effective the day after the Minneapolis Park
and Recreation Board timely completes compliance with Minnesota Statutes, section
645.021, subdivisions 2 and 3.

    Sec. 99. NORTH MISSISSIPPI REGIONAL PARK.
(a) The boundaries of the North Mississippi Regional Park are extended to include
the approximately 20.82 acres of land adjacent to the existing park known as Webber Park
and that part of Shingle Creek that flows through Webber Park and continues through
North Mississippi Regional Park into the Mississippi River.
(b) Funds appropriated for North Mississippi Regional Park may be expended to
provide for visitor amenities, including construction of a natural filtration swimming
pool and a building for park users.
EFFECTIVE DATE.This section is effective the day after the governing body of
the Minneapolis Park and Recreation Board and its chief clerical officer timely complete
their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

    Sec. 100. WASTEWATER TREATMENT SYSTEMS; BENEFICIAL USE.
The Pollution Control Agency shall apply the following criteria to wastewater
treatment system projects: at least 30 points shall be assigned if a project will result
in an agency-approved beneficial use of treated wastewater that results in reducing or
replacing the use of groundwater, surface water, or potable water, provided that the project
component resulting in the beneficial use of wastewater accounts for at least 20 percent of
the total eligible cost of the project. Projects receiving points for land discharge beneficial
use shall not receive an additional 30 points.
EFFECTIVE DATE.This section is effective August 1, 2013.

    Sec. 101. PERMIT CANCELLATION.
Upon written request submitted by a permit holder to the commissioner of natural
resources on or before June 1, 2015, the commissioner shall cancel any provision in a
timber sale permit sold prior to September 1, 2012, that requires the security payment for
or removal of all or part of the balsam fir when the permit contains at least 50 cords of
balsam fir. The remaining provisions of the permit remain in effect. The permit holder
may be required to fell or pile the balsam fir to meet management objectives.

    Sec. 102. GROUNDWATER SUSTAINABILITY RECOMMENDATIONS.
The commissioner of natural resources shall develop recommendations on
additional tools needed to fully implement the groundwater sustainability requirements
of Minnesota Statutes, section 103G.287, subdivisions 3 and 5. The recommendations
shall be submitted to the chairs of the environment and natural resources policy and
finance committees by January 15, 2014, and shall include draft legislative language to
implement the recommendations.

    Sec. 103. RULEMAKING; POSSESSION AND TRANSPORTATION OF
WILDLIFE.
The commissioner of natural resources may use the good cause exemption under
Minnesota Statutes, section 14.388, subdivision 1, clause (3), to adopt rules to conform
with the changes to Minnesota Statutes 2012, section 97A.401, subdivision 3, contained in
this article, and Minnesota Statutes, section 14.386, does not apply except as provided
under Minnesota Statutes, section 14.388.

    Sec. 104. RULEMAKING; DISPLAY OF PADDLE BOARD LICENSE
NUMBERS.
(a) The commissioner of natural resources shall amend Minnesota Rules, parts
6110.0200, 6110.0300, and 6110.0400, to exempt paddle boards from the requirement to
display license certificates and license numbers, in the same manner as other nonmotorized
watercraft such as canoes and kayaks.
(b) The commissioner may use the good cause exemption under Minnesota Statutes,
section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
Statutes, section 14.386, does not apply except as provided under Minnesota Statutes,
section 14.388.

    Sec. 105. RULES; SILICA SAND.
(a) The commissioner of the Pollution Control Agency shall adopt rules pertaining
to the control of particulate emissions from silica sand projects. The rulemaking is exempt
from Minnesota Statutes, section 14.125.
(b) The commissioner of natural resources shall adopt rules pertaining to the
reclamation of silica sand mines. The rulemaking is exempt from Minnesota Statutes,
section 14.125.
(c) By January 1, 2014, the Department of Health shall adopt an air quality
health-based value for silica sand.
(d) The Environmental Quality Board shall amend its rules for environmental
review, adopted under Minnesota Statutes, chapter 116D, for silica sand mining and
processing to take into account the increased activity in the state and concerns over the
size of specific operations. The Environmental Quality Board shall consider whether
the requirements of Minnesota Statutes, section 116C.991, should remain part of the
environmental review requirements for silica sand and whether the requirements should
be different for different geographic areas of the state. The rulemaking is exempt from
Minnesota Statutes, section 14.125.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 106. INTERIM ORDINANCE EXTENSION OR RENEWAL.
Notwithstanding Minnesota Statutes, sections 394.34 and 462.355, subdivision
4, until March 1, 2015, a local unit of government may extend for one year an interim
ordinance or renew an expired ordinance prohibiting new or expanded silica sand projects,
as defined in Minnesota Statutes, section 116C.99, and extend the ordinance an additional
year by resolution of the local unit of government.
EFFECTIVE DATE.This section is effective retroactively from March 1, 2013.

    Sec. 107. RULEMAKING; FUGITIVE EMISSIONS.
(a) The commissioner of the Pollution Control Agency shall amend Minnesota
Rules, part 7005.0100, subpart 35a, to read:
""Potential emissions" or "potential to emit" means the maximum capacity while
operating at the maximum hours of operation of an emissions unit, emission facility, or
stationary source to emit a pollutant under its physical and operational design. Any physical
or operational limitation on the capacity of the stationary source to emit a pollutant,
including air pollution control equipment and restriction on hours of operation or on the
type or amount of material combusted, stored, or processed, must be treated as part of its
design if the limitation or the effect it would have on emissions is federally enforceable.
Secondary emissions must not be counted in determining the potential to emit of
an emissions unit, emission facility, or stationary source. Fugitive emissions shall not be
counted when determining potential to emit, unless required under Minnesota Rules, part
7007.0200, subpart 2, item B, or applicable federal regulation."
(b) The commissioner may use the good cause exemption under Minnesota Statutes,
section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
Statutes, section 14.386, does not apply, except as provided under Minnesota Statutes,
section 14.388.

    Sec. 108. REPEALER.
(a) Minnesota Statutes 2012, sections 90.163; 90.173; 90.41, subdivision 2; and
103G.265, subdivision 2a, and Minnesota Rules, parts 7021.0010, subparts 1, 2, 4, and
5; 7021.0020; 7021.0030; 7021.0040; 7021.0050, subpart 5; 9210.0300; 9210.0310;
9210.0320; 9210.0330; 9210.0340; 9210.0350; 9210.0360; 9210.0370; 9210.0380; and
9220.0530, subpart 6, are repealed.
(b) Laws 2011, First Special Session chapter 2, article 4, section 30, is repealed.

ARTICLE 5
SANITARY DISTRICTS

    Section 1. Minnesota Statutes 2012, section 275.066, is amended to read:
275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
    For the purposes of property taxation and property tax state aids, the term "special
taxing districts" includes the following entities:
    (1) watershed districts under chapter 103D;
    (2) sanitary districts under sections 115.18 to 115.37 442A.01 to 442A.29;
    (3) regional sanitary sewer districts under sections 115.61 to 115.67;
    (4) regional public library districts under section 134.201;
    (5) park districts under chapter 398;
    (6) regional railroad authorities under chapter 398A;
    (7) hospital districts under sections 447.31 to 447.38;
    (8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
    (9) Duluth Transit Authority under sections 458A.21 to 458A.37;
    (10) regional development commissions under sections 462.381 to 462.398;
    (11) housing and redevelopment authorities under sections 469.001 to 469.047;
    (12) port authorities under sections 469.048 to 469.068;
    (13) economic development authorities under sections 469.090 to 469.1081;
    (14) Metropolitan Council under sections 473.123 to 473.549;
    (15) Metropolitan Airports Commission under sections 473.601 to 473.680;
    (16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
    (17) Morrison County Rural Development Financing Authority under Laws 1982,
chapter 437, section 1;
    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211,
sections 1 to 6;
    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article
5, section 39;
    (21) Middle Mississippi River Watershed Management Organization under sections
103B.211 and 103B.241;
    (22) emergency medical services special taxing districts under section 144F.01;
    (23) a county levying under the authority of section 103B.241, 103B.245, or
103B.251;
    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
under Laws 2003, First Special Session chapter 21, article 4, section 12;
    (25) an airport authority created under section 360.0426; and
    (26) any other political subdivision of the state of Minnesota, excluding counties,
school districts, cities, and towns, that has the power to adopt and certify a property tax
levy to the county auditor, as determined by the commissioner of revenue.

    Sec. 2. [442A.01] DEFINITIONS.
    Subdivision 1. Applicability. For the purposes of this chapter, the terms defined
in this section have the meanings given.
    Subd. 2. Chief administrative law judge. "Chief administrative law judge" means
the chief administrative law judge of the Office of Administrative Hearings or the delegate
of the chief administrative law judge under section 14.48.
    Subd. 3. District. "District" means a sanitary district created under this chapter or
under Minnesota Statutes 2012, sections 115.18 to 115.37.
    Subd. 4. Municipality. "Municipality" means a city, however organized.
    Subd. 5. Property owner. "Property owner" means the fee owner of land, or the
beneficial owner of land whose interest is primarily one of possession and enjoyment.
Property owner includes, but is not limited to, vendees under a contract for deed and
mortgagors. Any reference to a percentage of property owners means in number.
    Subd. 6. Related governing body. "Related governing body" means the governing
body of a related governmental subdivision and, in the case of an organized town, means
the town board.
    Subd. 7. Related governmental subdivision. "Related governmental subdivision"
means a municipality or organized town wherein there is a territorial unit of a district or, in
the case of an unorganized area, the county.
    Subd. 8. Territorial unit. "Territorial unit" means all that part of a district situated
within a single municipality, within a single organized town outside of a municipality, or,
in the case of an unorganized area, within a single county.

    Sec. 3. [442A.015] APPLICABILITY.
All new sanitary district formations proposed and all sanitary districts previously
formed under Minnesota Statutes 2012, sections 115.18 to 115.37, must comply with this
chapter, including annexations to, detachments from, and dissolutions of sanitary districts
previously formed under Minnesota Statutes 2012, sections 115.18 to 115.37.

    Sec. 4. [442A.02] SANITARY DISTRICTS; PROCEDURES AND AUTHORITY.
    Subdivision 1. Duty of chief administrative law judge. The chief administrative
law judge shall conduct proceedings, make determinations, and issue orders for the
creation of a sanitary district formed under this chapter or the annexation, detachment,
or dissolution of a sanitary district previously formed under Minnesota Statutes 2012,
sections 115.18 to 115.37.
    Subd. 2. Consolidation of proceedings. The chief administrative law judge may
order the consolidation of separate proceedings in the interest of economy and expedience.
    Subd. 3. Contracts, consultants. The chief administrative law judge may contract
with regional, state, county, or local planning commissions and hire expert consultants to
provide specialized information and assistance.
    Subd. 4. Powers of conductor of proceedings. Any person conducting a
proceeding under this chapter may administer oaths and affirmations; receive testimony
of witnesses, and the production of papers, books, and documents; examine witnesses;
and receive and report evidence. Upon the written request of a presiding administrative
law judge or a party, the chief administrative law judge may issue a subpoena for the
attendance of a witness or the production of books, papers, records, or other documents
material to any proceeding under this chapter. The subpoena is enforceable through the
district court in the district in which the subpoena is issued.
    Subd. 5. Rulemaking authority. The chief administrative law judge may adopt
rules that are reasonably necessary to carry out the duties and powers imposed upon the
chief administrative law judge under this chapter. The chief administrative law judge may
initially adopt rules according to section 14.386. Notwithstanding section 16A.1283, the
chief administrative law judge may adopt rules establishing fees.
    Subd. 6. Schedule of filing fees. The chief administrative law judge may prescribe
by rule a schedule of filing fees for any petitions filed under this chapter.
    Subd. 7. Request for hearing transcripts; costs. Any party may request the chief
administrative law judge to cause a transcript of the hearing to be made. Any party
requesting a copy of the transcript is responsible for its costs.
    Subd. 8. Compelled meetings; report. (a) In any proceeding under this chapter,
the chief administrative law judge or conductor of the proceeding may at any time in the
process require representatives from any petitioner, property owner, or involved city, town,
county, political subdivision, or other governmental entity to meet together to discuss
resolution of issues raised by the petition or order that confers jurisdiction on the chief
administrative law judge and other issues of mutual concern. The chief administrative
law judge or conductor of the proceeding may determine which entities are required
to participate in these discussions. The chief administrative law judge or conductor of
the proceeding may require that the parties meet at least three times during a 60-day
period. The parties shall designate a person to report to the chief administrative law
judge or conductor of the proceeding on the results of the meetings immediately after the
last meeting. The parties may be granted additional time at the discretion of the chief
administrative law judge or conductor of the proceedings.
(b) Any proposed resolution or settlement of contested issues that results in a
sanitary district formation, annexation, detachment, or dissolution; places conditions on
any future sanitary district formation, annexation, detachment, or dissolution; or results in
the withdrawal of an objection to a pending proceeding or the withdrawal of a pending
proceeding must be filed with the chief administrative law judge and is subject to the
applicable procedures and statutory criteria of this chapter.
    Subd. 9. Permanent official record. The chief administrative law judge shall
provide information about sanitary district creations, annexations, detachments, and
dissolutions to the Minnesota Pollution Control Agency. The Minnesota Pollution Control
Agency is responsible for maintaining the official record, including all documentation
related to the processes.
    Subd. 10. Shared program costs and fee revenue. The chief administrative
law judge and the Minnesota Pollution Control Agency shall agree on an amount to be
transferred from the Minnesota Pollution Control Agency to the chief administrative law
judge to pay for administration of this chapter, including publication and notification costs.
Sanitary district fees collected by the chief administrative law judge shall be deposited in
the environmental fund.
EFFECTIVE DATE.Subdivision 5 is effective the day following final enactment.

    Sec. 5. [442A.03] FILING OF MAPS IN SANITARY DISTRICT PROCEEDINGS.
Any party initiating a sanitary district proceeding that includes platted land shall file
with the chief administrative law judge maps which are necessary to support and identify
the land description. The maps shall include copies of plats.

    Sec. 6. [442A.04] SANITARY DISTRICT CREATION.
    Subdivision 1. Sanitary district creation. (a) A sanitary district may be created
under this chapter for any territory embracing an area or a group of two or more adjacent
areas, whether contiguous or separate, but not situated entirely within the limits of a
single municipality. The proposed sanitary district must promote the public health and
welfare by providing an adequate and efficient system and means of collecting, conveying,
pumping, treating, and disposing of domestic sewage and garbage and industrial wastes
within the district. When the chief administrative law judge or the Minnesota Pollution
Control Agency finds that there is need throughout the territory for the accomplishment
of these purposes; that these purposes can be effectively accomplished on an equitable
basis by a district if created; and that the creation and maintenance of a district will be
administratively feasible and in furtherance of the public health, safety, and welfare, the
chief administrative law judge shall make an order creating the sanitary district. A sanitary
district is administratively feasible under this section if the district has the financial and
managerial resources needed to deliver adequate and efficient sanitary sewer services
within the proposed district.
(b) Notwithstanding paragraph (a), no district shall be created within 25 miles of the
boundary of any city of the first class without the approval of the governing body thereof
and the approval of the governing body of each and every municipality in the proposed
district by resolution filed with the chief administrative law judge.
(c) If the chief administrative law judge and the Minnesota Pollution Control Agency
disagree on the need to create a sanitary district, they must determine whether not allowing
the sanitary district formation will have a detrimental effect on the environment. If it is
determined that the sanitary district formation will prevent environmental harm, the sanitary
district creation or connection to an existing wastewater treatment system must occur.
    Subd. 2. Proceeding to create sanitary district. (a) A proceeding for the creation
of a district may be initiated by a petition to the chief administrative law judge containing
the following:
(1) a request for creation of the proposed district;
(2) the name proposed for the district, to include the words "sanitary district";
(3) a legal description of the territory of the proposed district, including justification
for inclusion or exclusion for all parcels;
(4) addresses of every property owner within the proposed district boundaries as
provided by the county auditor, with certification from the county auditor; two sets of
address labels for said owners; and a list of e-mail addresses for said owners, if available;
(5) a statement showing the existence in the territory of the conditions requisite for
creation of a district as prescribed in subdivision 1;
(6) a statement of the territorial units represented by and the qualifications of the
respective signers; and
(7) the post office address of each signer, given under the signer's signature.
A petition may consist of separate writings of like effect, each signed by one or more
qualified persons, and all such writings, when filed, shall be considered together as a
single petition.
(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
proposed creation of the district. At the meeting, information must be provided, including
a description of the district's proposed structure, bylaws, territory, ordinances, budget, and
charges and a description of the territory of the proposed district, including justification
for inclusion or exclusion for all parcels. Notice of the meeting must be published for two
successive weeks in a qualified newspaper, as defined under chapter 331A, published
within the territory of the proposed district or, if there is no qualified newspaper published
within the territory, in a qualified newspaper of general circulation in the territory, and
must be posted for two weeks in each territorial unit of the proposed district and on the
Web site of the proposed district, if one exists. Notice of the meeting must be mailed or
e-mailed at least three weeks prior to the meeting to all property tax billing addresses for
all parcels included in the proposed district. The following must be submitted to the chief
administrative law judge with the petition:
(1) a record of the meeting, including copies of all information provided at the
meeting;
(2) a copy of the mailing list provided by the county auditor and used to notify
property owners of the meeting;
(3) a copy of the e-mail list used to notify property owners of the meeting;
(4) the printer's affidavit of publication of public meeting notice;
(5) an affidavit of posting the public meeting notice with information on dates and
locations of posting; and
(6) the minutes or other record of the public meeting documenting that the following
topics were discussed: printer's affidavit of publication of each resolution, with a copy
of the resolution from the newspaper attached; and the affidavit of resolution posting
on the town or proposed district Web site.
(c) Every petition must be signed as follows:
(1) for each municipality wherein there is a territorial unit of the proposed district,
by an authorized officer pursuant to a resolution of the municipal governing body;
(2) for each organized town wherein there is a territorial unit of the proposed district,
by an authorized officer pursuant to a resolution of the town board;
(3) for each county wherein there is a territorial unit of the proposed district consisting
of an unorganized area, by an authorized officer pursuant to a resolution of the county
board or by at least 20 percent of the voters residing and owning land within the unit.
(d) Each resolution must be published in the official newspaper of the governing
body adopting it and becomes effective 40 days after publication, unless within said
period there shall be filed with the governing body a petition signed by qualified electors
of a territorial unit of the proposed district, equal in number to five percent of the number
of electors voting at the last preceding election of the governing body, requesting a
referendum on the resolution, in which case the resolution may not become effective until
approved by a majority of the qualified electors voting at a regular election or special
election that the governing body may call. The notice of an election and the ballot to be
used must contain the text of the resolution followed by the question: "Shall the above
resolution be approved?"
(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
the signer's landowner status as shown by the county auditor's tax assessment records,
certified by the auditor, shall be attached to or endorsed upon the petition.
(f) At any time before publication of the public notice required in subdivision 3,
additional signatures may be added to the petition or amendments of the petition may
be made to correct or remedy any error or defect in signature or otherwise except a
material error or defect in the description of the territory of the proposed district. If the
qualifications of any signer of a petition are challenged, the chief administrative law judge
shall determine the challenge forthwith on the allegations of the petition, the county
auditor's certificate of land ownership, and such other evidence as may be received.
    Subd. 3. Notice of intent to create sanitary district. (a) Upon receipt of a petition
and the record of the public meeting required under subdivision 2, the chief administrative
law judge shall publish a notice of intent to create the proposed sanitary district in the State
Register and mail or e-mail information of that publication to each property owner in the
affected territory at the owner's address as given by the county auditor. The information
must state the date that the notice will appear in the State Register and give the Web site
location for the State Register. The notice must:
(1) describe the petition for creation of the district;
(2) describe the territory affected by the petition;
(3) allow 30 days for submission of written comments on the petition;
(4) state that a person who objects to the petition may submit a written request for
hearing to the chief administrative law judge within 30 days of the publication of the
notice in the State Register; and
(5) state that if a timely request for hearing is not received, the chief administrative
law judge may make a decision on the petition.
(b) If 50 or more individual timely requests for hearing are received, the chief
administrative law judge must hold a hearing on the petition according to the contested
case provisions of chapter 14. The sanitary district proposers are responsible for paying all
costs involved in publicizing and holding a hearing on the petition.
    Subd. 4. Hearing time, place. If a hearing is required pursuant to subdivision 3, the
chief administrative law judge shall designate a time and place for a hearing according
to section 442A.13.
    Subd. 5. Relevant factors. (a) In arriving at a decision, the chief administrative law
judge shall consider the following factors:
(1) administrative feasibility under subdivision 1, paragraph (a);
(2) public health, safety, and welfare impacts;
(3) alternatives for managing the public health impacts;
(4) equities of the petition proposal;
(5) contours of the petition proposal; and
(6) public notification of and interaction on the petition proposal.
(b) Based on the factors in paragraph (a), the chief administrative law judge may
order the sanitary district creation on finding that:
(1) the proposed district is administratively feasible;
(2) the proposed district provides a long-term, equitable solution to pollution
problems affecting public health, safety, and welfare;
(3) property owners within the proposed district were provided notice of the
proposed district and opportunity to comment on the petition proposal; and
(4) the petition complied with the requirements of all applicable statutes and rules
pertaining to sanitary district creation.
(c) The chief administrative law judge may alter the boundaries of the proposed
sanitary district by increasing or decreasing the area to be included or may exclude
property that may be better served by another unit of government. The chief administrative
law judge may also alter the boundaries of the proposed district so as to follow visible,
clearly recognizable physical features for municipal boundaries.
(d) The chief administrative law judge may deny sanitary district creation if the area,
or a part thereof, would be better served by an alternative method.
(e) In all cases, the chief administrative law judge shall set forth the factors that are
the basis for the decision.
    Subd. 6. Findings; order. After the public notice period or the public hearing, if
required under subdivision 3, and based on the petition, any public comments received,
and, if a hearing was held, the hearing record, the chief administrative law judge shall
make findings of fact and conclusions determining whether the conditions requisite for the
creation of a district exist in the territory described in the petition. If the chief administrative
law judge finds that the conditions exist, the judge may make an order creating a district
for the territory described in that petition under the name proposed in the petition or such
other name, including the words "sanitary district," as the judge deems appropriate.
    Subd. 7. Denial of petition. If the chief administrative law judge, after conclusion
of the public notice period or holding a hearing, if required, determines that the creation of
a district in the territory described in the petition is not warranted, the judge shall make
an order denying the petition. The chief administrative law judge shall give notice of the
denial by mail or e-mail to each signer of the petition. No petition for the creation of a
district consisting of the same territory shall be entertained within a year after the date of
an order under this subdivision. Nothing in this subdivision precludes action on a petition
for the creation of a district embracing part of the territory with or without other territory.
    Subd. 8. Notice of order creating sanitary district. The chief administrative law
judge shall publish a notice in the State Register of the final order creating a sanitary
district, referring to the date of the order and describing the territory of the district, and
shall mail or e-mail information of the publication to each property owner in the affected
territory at the owner's address as given by the county auditor. The information must state
the date that the notice will appear in the State Register and give the Web site location
for the State Register. The notice must:
(1) describe the petition for creation of the district;
(2) describe the territory affected by the petition; and
(3) state that a certified copy of the order shall be delivered to the secretary of state
for filing ten days after public notice of the order in the State Register.
    Subd. 9. Filing. Ten days after public notice of the order in the State Register, the
chief administrative law judge shall deliver a certified copy of the order to the secretary
of state for filing. Thereupon, the creation of the district is deemed complete, and it
shall be conclusively presumed that all requirements of law relating thereto have been
complied with. The chief administrative law judge shall also transmit a certified copy of
the order for filing to the county auditor of each county and the clerk or recorder of each
municipality and organized town wherein any part of the territory of the district is situated
and to the secretary of the district board when elected.

    Sec. 7. [442A.05] SANITARY DISTRICT ANNEXATION.
    Subdivision 1. Annexation. (a) A sanitary district annexation may occur under
this chapter for any area adjacent to an existing district upon a petition to the chief
administrative law judge stating the grounds therefor as provided in this section.
(b) The proposed annexation area must embrace an area or a group of two or more
adjacent areas, whether contiguous or separate, but not situated entirely within the limits
of a single municipality. The proposed annexation must promote public health and
welfare by providing an adequate and efficient system and means of collecting, conveying,
pumping, treating, and disposing of domestic sewage and garbage and industrial wastes
within the district. When the chief administrative law judge or the Minnesota Pollution
Control Agency finds that there is need throughout the territory for the accomplishment of
these purposes, that these purposes can be effectively accomplished on an equitable basis
by annexation to a district, and that the creation and maintenance of such annexation will
be administratively feasible and in furtherance of the public health, safety, and welfare,
the chief administrative law judge shall make an order for sanitary district annexation. An
annexation is administratively feasible under this section if the district has the financial
and managerial resources needed to deliver adequate and efficient sanitary sewer services
within the proposed annexation.
(c) Notwithstanding paragraph (b), no annexation to a district shall be approved
within 25 miles of the boundary of any city of the first class without the approval
of the governing body thereof and the approval of the governing body of each and
every municipality in the proposed annexation area by resolution filed with the chief
administrative law judge.
(d) If the chief administrative law judge and the Minnesota Pollution Control Agency
disagree on the need for a sanitary district annexation, they must determine whether not
allowing the sanitary district annexation will have a detrimental effect on the environment.
If it is determined that the sanitary district annexation will prevent environmental harm,
the sanitary district annexation or connection to an existing wastewater treatment system
must occur.
    Subd. 2. Proceeding for annexation. (a) A proceeding for sanitary district
annexation may be initiated by a petition to the chief administrative law judge containing
the following:
(1) a request for proposed annexation to a sanitary district;
(2) a legal description of the territory of the proposed annexation, including
justification for inclusion or exclusion for all parcels;
(3) addresses of every property owner within the existing sanitary district and
proposed annexation area boundaries as provided by the county auditor, with certification
from the county auditor; two sets of address labels for said owners; and a list of e-mail
addresses for said owners, if available;
(4) a statement showing the existence in such territory of the conditions requisite
for annexation to a district as prescribed in subdivision 1;
(5) a statement of the territorial units represented by and qualifications of the
respective signers; and
(6) the post office address of each signer, given under the signer's signature.
A petition may consist of separate writings of like effect, each signed by one or more
qualified persons, and all such writings, when filed, shall be considered together as a
single petition.
(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
proposed annexation to a sanitary district. At the meeting, information must be provided,
including a description of the existing sanitary district's structure, bylaws, territory,
ordinances, budget, and charges; a description of the existing sanitary district's territory;
and a description of the territory of the proposed annexation area, including justification
for inclusion or exclusion for all parcels for the annexation area. Notice of the meeting
must be published for two successive weeks in a qualified newspaper, as defined under
chapter 331A, published within the territories of the existing sanitary district and proposed
annexation area or, if there is no qualified newspaper published within those territories, in
a qualified newspaper of general circulation in the territories, and must be posted for two
weeks in each territorial unit of the existing sanitary district and proposed annexation area
and on the Web site of the existing sanitary district, if one exists. Notice of the meeting
must be mailed or e-mailed at least three weeks prior to the meeting to all property tax
billing addresses for all parcels included in the existing sanitary district and proposed
annexation area. The following must be submitted to the chief administrative law judge
with the petition:
(1) a record of the meeting, including copies of all information provided at the
meeting;
(2) a copy of the mailing list provided by the county auditor and used to notify
property owners of the meeting;
(3) a copy of the e-mail list used to notify property owners of the meeting;
(4) the printer's affidavit of publication of the public meeting notice;
(5) an affidavit of posting the public meeting notice with information on dates and
locations of posting; and
(6) the minutes or other record of the public meeting documenting that the following
topics were discussed: printer's affidavit of publication of each resolution, with copy
of resolution from newspaper attached; and affidavit of resolution posting on town or
existing sanitary district Web site.
(c) Every petition must be signed as follows:
(1) by an authorized officer of the existing sanitary district pursuant to a resolution
of the board;
(2) for each municipality wherein there is a territorial unit of the proposed annexation
area, by an authorized officer pursuant to a resolution of the municipal governing body;
(3) for each organized town wherein there is a territorial unit of the proposed
annexation area, by an authorized officer pursuant to a resolution of the town board; and
(4) for each county wherein there is a territorial unit of the proposed annexation area
consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
county board or by at least 20 percent of the voters residing and owning land within the unit.
(d) Each resolution must be published in the official newspaper of the governing
body adopting it and becomes effective 40 days after publication, unless within said
period there shall be filed with the governing body a petition signed by qualified electors
of a territorial unit of the proposed annexation area, equal in number to five percent of the
number of electors voting at the last preceding election of the governing body, requesting
a referendum on the resolution, in which case the resolution may not become effective
until approved by a majority of the qualified electors voting at a regular election or special
election that the governing body may call. The notice of an election and the ballot to be
used must contain the text of the resolution followed by the question: "Shall the above
resolution be approved?"
(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
the signer's landowner status as shown by the county auditor's tax assessment records,
certified by the auditor, shall be attached to or endorsed upon the petition.
(f) At any time before publication of the public notice required in subdivision 4,
additional signatures may be added to the petition or amendments of the petition may be
made to correct or remedy any error or defect in signature or otherwise except a material
error or defect in the description of the territory of the proposed annexation area. If the
qualifications of any signer of a petition are challenged, the chief administrative law judge
shall determine the challenge forthwith on the allegations of the petition, the county
auditor's certificate of land ownership, and such other evidence as may be received.
    Subd. 3. Joint petition. Different areas may be annexed to a district in a single
proceeding upon a joint petition therefor and upon compliance with the provisions of
subdivisions 1 and 2 with respect to the area affected so far as applicable.
    Subd. 4. Notice of intent for sanitary district annexation. (a) Upon receipt
of a petition and the record of public meeting required under subdivision 2, the chief
administrative law judge shall publish a notice of intent for sanitary district annexation
in the State Register and mail or e-mail information of the publication to each property
owner in the affected territory at the owner's address as given by the county auditor. The
information must state the date that the notice will appear in the State Register and give
the Web site location for the State Register. The notice must:
(1) describe the petition for sanitary district annexation;
(2) describe the territory affected by the petition;
(3) allow 30 days for submission of written comments on the petition;
(4) state that a person who objects to the petition may submit a written request for
hearing to the chief administrative law judge within 30 days of the publication of the
notice in the State Register; and
(5) state that if a timely request for hearing is not received, the chief administrative
law judge may make a decision on the petition.
(b) If 50 or more individual timely requests for hearing are received, the chief
administrative law judge must hold a hearing on the petition according to the contested case
provisions of chapter 14. The sanitary district or annexation area proposers are responsible
for paying all costs involved in publicizing and holding a hearing on the petition.
    Subd. 5. Hearing time, place. If a hearing is required under subdivision 4, the
chief administrative law judge shall designate a time and place for a hearing according
to section 442A.13.
    Subd. 6. Relevant factors. (a) In arriving at a decision, the chief administrative law
judge shall consider the following factors:
(1) administrative feasibility under subdivision 1, paragraph (b);
(2) public health, safety, and welfare impacts;
(3) alternatives for managing the public health impacts;
(4) equities of the petition proposal;
(5) contours of the petition proposal; and
(6) public notification of and interaction on the petition proposal.
(b) Based upon these factors, the chief administrative law judge may order the
annexation to the sanitary district on finding that:
(1) the sanitary district is knowledgeable and experienced in delivering sanitary sewer
services to ratepayers and has provided quality service in a fair and cost-effective manner;
(2) the proposed annexation provides a long-term, equitable solution to pollution
problems affecting public health, safety, and welfare;
(3) property owners within the existing sanitary district and proposed annexation
area were provided notice of the proposed district and opportunity to comment on the
petition proposal; and
(4) the petition complied with the requirements of all applicable statutes and rules
pertaining to sanitary district annexation.
(c) The chief administrative law judge may alter the boundaries of the proposed
annexation area by increasing or decreasing the area to be included or may exclude
property that may be better served by another unit of government. The chief administrative
law judge may also alter the boundaries of the proposed annexation area so as to follow
visible, clearly recognizable physical features for municipal boundaries.
(d) The chief administrative law judge may deny sanitary district annexation if the
area, or a part thereof, would be better served by an alternative method.
(e) In all cases, the chief administrative law judge shall set forth the factors that are
the basis for the decision.
    Subd. 7. Findings; order. (a) After the public notice period or the public hearing, if
required under subdivision 4, and based on the petition, any public comments received,
and, if a hearing was held, the hearing record, the chief administrative law judge shall
make findings of fact and conclusions determining whether the conditions requisite for
the sanitary district annexation exist in the territory described in the petition. If the chief
administrative law judge finds that conditions exist, the judge may make an order for
sanitary district annexation for the territory described in the petition.
(b) All taxable property within the annexed area shall be subject to taxation for
any existing bonded indebtedness or other indebtedness of the district for the cost of
acquisition, construction, or improvement of any disposal system or other works or
facilities beneficial to the annexed area to such extent as the chief administrative law judge
may determine to be just and equitable, to be specified in the order for annexation. The
proper officers shall levy further taxes on such property accordingly.
    Subd. 8. Denial of petition. If the chief administrative law judge, after conclusion
of the public notice period or holding a hearing, if required, determines that the sanitary
district annexation in the territory described in the petition is not warranted, the judge shall
make an order denying the petition. The chief administrative law judge shall give notice
of the denial by mail or e-mail to each signer of the petition. No petition for a sanitary
district annexation consisting of the same territory shall be entertained within a year
after the date of an order under this subdivision. Nothing in this subdivision precludes
action on a petition for a sanitary district annexation embracing part of the territory with
or without other territory.
    Subd. 9. Notice of order for sanitary district annexation. The chief administrative
law judge shall publish in the State Register a notice of the final order for sanitary district
annexation, referring to the date of the order and describing the territory of the annexation
area, and shall mail or e-mail information of the publication to each property owner in the
affected territory at the owner's address as given by the county auditor. The information
must state the date that the notice will appear in the State Register and give the Web site
location for the State Register. The notice must:
(1) describe the petition for annexation to the district;
(2) describe the territory affected by the petition; and
(3) state that a certified copy of the order shall be delivered to the secretary of state
for filing ten days after public notice of the order in the State Register.
    Subd. 10. Filing. Ten days after public notice of the order in the State Register, the
chief administrative law judge shall deliver a certified copy of the order to the secretary
of state for filing. Thereupon, the sanitary district annexation is deemed complete, and it
shall be conclusively presumed that all requirements of law relating thereto have been
complied with. The chief administrative law judge shall also transmit a certified copy of
the order for filing to the county auditor of each county and the clerk or recorder of each
municipality and organized town wherein any part of the territory of the district, including
the newly annexed area, is situated and to the secretary of the district board.

    Sec. 8. [442A.06] SANITARY DISTRICT DETACHMENT.
    Subdivision 1. Detachment. (a) A sanitary district detachment may occur under this
chapter for any area within an existing district upon a petition to the chief administrative
law judge stating the grounds therefor as provided in this section.
(b) The proposed detachment must not have any negative environmental impact
on the proposed detachment area.
(c) If the chief administrative law judge and the Minnesota Pollution Control
Agency disagree on the need for a sanitary district detachment, they must determine
whether not allowing the sanitary district detachment will have a detrimental effect on
the environment. If it is determined that the sanitary district detachment will cause
environmental harm, the sanitary district detachment is not allowed unless the detached
area is immediately connected to an existing wastewater treatment system.
    Subd. 2. Proceeding for detachment. (a) A proceeding for sanitary district
detachment may be initiated by a petition to the chief administrative law judge containing
the following:
(1) a request for proposed detachment from a sanitary district;
(2) a statement that the requisite conditions for inclusion in a district no longer exist
in the proposed detachment area;
(3) a legal description of the territory of the proposed detachment, including
justification for inclusion or exclusion for all parcels;
(4) addresses of every property owner within the sanitary district and proposed
detachment area boundaries as provided by the county auditor, with certification from the
county auditor; two sets of address labels for said owners; and a list of e-mail addresses
for said owners, if available;
(5) a statement of the territorial units represented by and qualifications of the
respective signers; and
(6) the post office address of each signer, given under the signer's signature.
A petition may consist of separate writings of like effect, each signed by one or more
qualified persons, and all such writings, when filed, shall be considered together as a
single petition.
(b) Petitioners must conduct and pay for a public meeting to inform citizens of
the proposed detachment from a sanitary district. At the meeting, information must be
provided, including a description of the existing district's territory and a description of the
territory of the proposed detachment area, including justification for inclusion or exclusion
for all parcels for the detachment area. Notice of the meeting must be published for two
successive weeks in a qualified newspaper, as defined under chapter 331A, published
within the territories of the existing sanitary district and proposed detachment area or, if
there is no qualified newspaper published within those territories, in a qualified newspaper
of general circulation in the territories, and must be posted for two weeks in each territorial
unit of the existing sanitary district and proposed detachment area and on the Web site
of the existing sanitary district, if one exists. Notice of the meeting must be mailed or
e-mailed at least three weeks prior to the meeting to all property tax billing addresses for
all parcels included in the sanitary district. The following must be submitted to the chief
administrative law judge with the petition:
(1) a record of the meeting, including copies of all information provided at the
meeting;
(2) a copy of the mailing list provided by the county auditor and used to notify
property owners of the meeting;
(3) a copy of the e-mail list used to notify property owners of the meeting;
(4) the printer's affidavit of publication of public meeting notice;
(5) an affidavit of posting the public meeting notice with information on dates and
locations of posting; and
(6) minutes or other record of the public meeting documenting that the following
topics were discussed: printer's affidavit of publication of each resolution, with copy
of resolution from newspaper attached; and affidavit of resolution posting on town or
existing sanitary district Web site.
(c) Every petition must be signed as follows:
(1) by an authorized officer of the existing sanitary district pursuant to a resolution
of the board;
(2) for each municipality wherein there is a territorial unit of the proposed detachment
area, by an authorized officer pursuant to a resolution of the municipal governing body;
(3) for each organized town wherein there is a territorial unit of the proposed
detachment area, by an authorized officer pursuant to a resolution of the town board; and
(4) for each county wherein there is a territorial unit of the proposed detachment area
consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
county board or by at least 20 percent of the voters residing and owning land within the unit.
(d) Each resolution must be published in the official newspaper of the governing
body adopting it and becomes effective 40 days after publication, unless within said period
there shall be filed with the governing body a petition signed by qualified electors of a
territorial unit of the proposed detachment area, equal in number to five percent of the
number of electors voting at the last preceding election of the governing body, requesting
a referendum on the resolution, in which case the resolution may not become effective
until approved by a majority of the qualified electors voting at a regular election or special
election that the governing body may call. The notice of an election and the ballot to be
used must contain the text of the resolution followed by the question: "Shall the above
resolution be approved?"
(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
the signer's landowner status as shown by the county auditor's tax assessment records,
certified by the auditor, shall be attached to or endorsed upon the petition.
(f) At any time before publication of the public notice required in subdivision 4,
additional signatures may be added to the petition or amendments of the petition may be
made to correct or remedy any error or defect in signature or otherwise except a material
error or defect in the description of the territory of the proposed detachment area. If the
qualifications of any signer of a petition are challenged, the chief administrative law judge
shall determine the challenge forthwith on the allegations of the petition, the county
auditor's certificate of land ownership, and such other evidence as may be received.
    Subd. 3. Joint petition. Different areas may be detached from a district in a single
proceeding upon a joint petition therefor and upon compliance with the provisions of
subdivisions 1 and 2 with respect to the area affected so far as applicable.
    Subd. 4. Notice of intent for sanitary district detachment. (a) Upon receipt
of a petition and record of public meeting required under subdivision 2, the chief
administrative law judge shall publish a notice of intent for sanitary district detachment
in the State Register and mail or e-mail information of the publication to each property
owner in the affected territory at the owner's address as given by the county auditor. The
information must state the date that the notice will appear in the State Register and give
the Web site location for the State Register. The notice must:
(1) describe the petition for sanitary district detachment;
(2) describe the territory affected by the petition;
(3) allow 30 days for submission of written comments on the petition;
(4) state that a person who objects to the petition may submit a written request for
hearing to the chief administrative law judge within 30 days of the publication of the
notice in the State Register; and
(5) state that if a timely request for hearing is not received, the chief administrative
law judge may make a decision on the petition.
(b) If 50 or more individual timely requests for hearing are received, the chief
administrative law judge must hold a hearing on the petition according to the contested case
provisions of chapter 14. The sanitary district or detachment area proposers are responsible
for paying all costs involved in publicizing and holding a hearing on the petition.
    Subd. 5. Hearing time, place. If a hearing is required under subdivision 4, the
chief administrative law judge shall designate a time and place for a hearing according
to section 442A.13.
    Subd. 6. Relevant factors. (a) In arriving at a decision, the chief administrative law
judge shall consider the following factors:
(1) public health, safety, and welfare impacts for the proposed detachment area;
(2) alternatives for managing the public health impacts for the proposed detachment
area;
(3) equities of the petition proposal;
(4) contours of the petition proposal; and
(5) public notification of and interaction on the petition proposal.
(b) Based upon these factors, the chief administrative law judge may order the
detachment from the sanitary district on finding that:
(1) the proposed detachment area has adequate alternatives for managing public
health impacts due to the detachment;
(2) the proposed detachment area is not necessary for the district to provide a
long-term, equitable solution to pollution problems affecting public health, safety, and
welfare;
(3) property owners within the existing sanitary district and proposed detachment
area were provided notice of the proposed detachment and opportunity to comment on
the petition proposal; and
(4) the petition complied with the requirements of all applicable statutes and rules
pertaining to sanitary district detachment.
(c) The chief administrative law judge may alter the boundaries of the proposed
detachment area by increasing or decreasing the area to be included or may exclude
property that may be better served by another unit of government. The chief administrative
law judge may also alter the boundaries of the proposed detachment area so as to follow
visible, clearly recognizable physical features for municipal boundaries.
(d) The chief administrative law judge may deny sanitary district detachment if the
area, or a part thereof, would be better served by an alternative method.
(e) In all cases, the chief administrative law judge shall set forth the factors that are
the basis for the decision.
    Subd. 7. Findings; order. (a) After the public notice period or the public hearing, if
required under subdivision 4, and based on the petition, any public comments received,
and, if a hearing was held, the hearing record, the chief administrative law judge shall
make findings of fact and conclusions determining whether the conditions requisite for
the sanitary district detachment exist in the territory described in the petition. If the chief
administrative law judge finds that conditions exist, the judge may make an order for
sanitary district detachment for the territory described in the petition.
(b) All taxable property within the detached area shall remain subject to taxation
for any existing bonded indebtedness of the district to such extent as it would have been
subject thereto if not detached and shall also remain subject to taxation for any other
existing indebtedness of the district incurred for any purpose beneficial to such area to
such extent as the chief administrative law judge may determine to be just and equitable,
to be specified in the order for detachment. The proper officers shall levy further taxes on
such property accordingly.
    Subd. 8. Denial of petition. If the chief administrative law judge, after conclusion
of the public notice period or holding a hearing, if required, determines that the sanitary
district detachment in the territory described in the petition is not warranted, the judge
shall make an order denying the petition. The chief administrative law judge shall give
notice of the denial by mail or e-mail to each signer of the petition. No petition for a
detachment from a district consisting of the same territory shall be entertained within a
year after the date of an order under this subdivision. Nothing in this subdivision precludes
action on a petition for a detachment from a district embracing part of the territory with
or without other territory.
    Subd. 9. Notice of order for sanitary district detachment. The chief
administrative law judge shall publish in the State Register a notice of the final order
for sanitary district detachment, referring to the date of the order and describing the
territory of the detached area and shall mail or e-mail information of the publication
to each property owner in the affected territory at the owner's address as given by the
county auditor. The information must state the date that the notice will appear in the State
Register and give the Web site location for the State Register. The notice must:
(1) describe the petition for detachment from the district;
(2) describe the territory affected by the petition; and
(3) state that a certified copy of the order shall be delivered to the secretary of state
for filing ten days after public notice of the order in the State Register.
    Subd. 10. Filing. Ten days after public notice of the order in the State Register, the
chief administrative law judge shall deliver a certified copy of the order to the secretary of
state for filing. Thereupon, the sanitary district detachment is deemed complete, and it
shall be conclusively presumed that all requirements of law relating thereto have been
complied with. The chief administrative law judge shall also transmit a certified copy of
the order for filing to the county auditor of each county and the clerk or recorder of each
municipality and organized town wherein any part of the territory of the district, including
the newly detached area, is situated and to the secretary of the district board.

    Sec. 9. [442A.07] SANITARY DISTRICT DISSOLUTION.
    Subdivision 1. Dissolution. (a) An existing sanitary district may be dissolved under
this chapter upon a petition to the chief administrative law judge stating the grounds
therefor as provided in this section.
(b) The proposed dissolution must not have any negative environmental impact on
the existing sanitary district area.
(c) If the chief administrative law judge and the Minnesota Pollution Control
Agency disagree on the need to dissolve a sanitary district, they must determine whether
not dissolving the sanitary district will have a detrimental effect on the environment. If
it is determined that the sanitary district dissolution will cause environmental harm, the
sanitary district dissolution is not allowed unless the existing sanitary district area is
immediately connected to an existing wastewater treatment system.
    Subd. 2. Proceeding for dissolution. (a) A proceeding for sanitary district
dissolution may be initiated by a petition to the chief administrative law judge containing
the following:
(1) a request for proposed sanitary district dissolution;
(2) a statement that the requisite conditions for a sanitary district no longer exist
in the district area;
(3) a proposal for distribution of the remaining funds of the district, if any, among
the related governmental subdivisions;
(4) a legal description of the territory of the proposed dissolution;
(5) addresses of every property owner within the sanitary district boundaries as
provided by the county auditor, with certification from the county auditor; two sets of
address labels for said owners; and a list of e-mail addresses for said owners, if available;
(6) a statement of the territorial units represented by and the qualifications of the
respective signers; and
(7) the post office address of each signer, given under the signer's signature.
A petition may consist of separate writings of like effect, each signed by one or more
qualified persons, and all such writings, when filed, shall be considered together as a
single petition.
(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
proposed dissolution of a sanitary district. At the meeting, information must be provided,
including a description of the existing district's territory. Notice of the meeting must be
published for two successive weeks in a qualified newspaper, as defined under chapter
331A, published within the territory of the sanitary district or, if there is no qualified
newspaper published within that territory, in a qualified newspaper of general circulation
in the territory and must be posted for two weeks in each territorial unit of the sanitary
district and on the Web site of the existing sanitary district, if one exists. Notice of the
meeting must be mailed or e-mailed at least three weeks prior to the meeting to all property
tax billing addresses for all parcels included in the sanitary district. The following must be
submitted to the chief administrative law judge with the petition:
(1) a record of the meeting, including copies of all information provided at the
meeting;
(2) a copy of the mailing list provided by the county auditor and used to notify
property owners of the meeting;
(3) a copy of the e-mail list used to notify property owners of the meeting;
(4) the printer's affidavit of publication of public meeting notice;
(5) an affidavit of posting the public meeting notice with information on dates and
locations of posting; and
(6) minutes or other record of the public meeting documenting that the following
topics were discussed: printer's affidavit of publication of each resolution, with copy
of resolution from newspaper attached; and affidavit of resolution posting on town or
existing sanitary district Web site.
(c) Every petition must be signed as follows:
(1) by an authorized officer of the existing sanitary district pursuant to a resolution
of the board;
(2) for each municipality wherein there is a territorial unit of the existing sanitary
district, by an authorized officer pursuant to a resolution of the municipal governing body;
(3) for each organized town wherein there is a territorial unit of the existing sanitary
district, by an authorized officer pursuant to a resolution of the town board; and
(4) for each county wherein there is a territorial unit of the existing sanitary district
consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
county board or by at least 20 percent of the voters residing and owning land within the unit.
(d) Each resolution must be published in the official newspaper of the governing body
adopting it and becomes effective 40 days after publication, unless within said period there
shall be filed with the governing body a petition signed by qualified electors of a territorial
unit of the district, equal in number to five percent of the number of electors voting at the
last preceding election of the governing body, requesting a referendum on the resolution,
in which case the resolution may not become effective until approved by a majority of the
qualified electors voting at a regular election or special election that the governing body
may call. The notice of an election and the ballot to be used must contain the text of the
resolution followed by the question: "Shall the above resolution be approved?"
(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
the signer's landowner status as shown by the county auditor's tax assessment records,
certified by the auditor, shall be attached to or endorsed upon the petition.
(f) At any time before publication of the public notice required in subdivision 3,
additional signatures may be added to the petition or amendments of the petition may be
made to correct or remedy any error or defect in signature or otherwise except a material
error or defect in the description of the territory of the proposed dissolution area. If the
qualifications of any signer of a petition are challenged, the chief administrative law judge
shall determine the challenge forthwith on the allegations of the petition, the county
auditor's certificate of land ownership, and such other evidence as may be received.
    Subd. 3. Notice of intent for sanitary district dissolution. (a) Upon receipt
of a petition and record of the public meeting required under subdivision 2, the chief
administrative law judge shall publish a notice of intent of sanitary district dissolution
in the State Register and mail or e-mail information of the publication to each property
owner in the affected territory at the owner's address as given by the county auditor. The
information must state the date that the notice will appear in the State Register and give
the Web site location for the State Register. The notice must:
(1) describe the petition for sanitary district dissolution;
(2) describe the territory affected by the petition;
(3) allow 30 days for submission of written comments on the petition;
(4) state that a person who objects to the petition may submit a written request for
hearing to the chief administrative law judge within 30 days of the publication of the
notice in the State Register; and
(5) state that if a timely request for hearing is not received, the chief administrative
law judge may make a decision on the petition.
(b) If 50 or more individual timely requests for hearing are received, the chief
administrative law judge must hold a hearing on the petition according to the contested
case provisions of chapter 14. The sanitary district dissolution proposers are responsible
for paying all costs involved in publicizing and holding a hearing on the petition.
    Subd. 4. Hearing time, place. If a hearing is required under subdivision 3, the
chief administrative law judge shall designate a time and place for a hearing according
to section 442A.13.
    Subd. 5. Relevant factors. (a) In arriving at a decision, the chief administrative law
judge shall consider the following factors:
(1) public health, safety, and welfare impacts for the proposed dissolution;
(2) alternatives for managing the public health impacts for the proposed dissolution;
(3) equities of the petition proposal;
(4) contours of the petition proposal; and
(5) public notification of and interaction on the petition proposal.
(b) Based upon these factors, the chief administrative law judge may order the
dissolution of the sanitary district on finding that:
(1) the proposed dissolution area has adequate alternatives for managing public
health impacts due to the dissolution;
(2) the sanitary district is not necessary to provide a long-term, equitable solution to
pollution problems affecting public health, safety, and welfare;
(3) property owners within the sanitary district were provided notice of the proposed
dissolution and opportunity to comment on the petition proposal; and
(4) the petition complied with the requirements of all applicable statutes and rules
pertaining to sanitary district dissolution.
(c) The chief administrative law judge may alter the boundaries of the proposed
dissolution area by increasing or decreasing the area to be included or may exclude
property that may be better served by another unit of government. The chief administrative
law judge may also alter the boundaries of the proposed dissolution area so as to follow
visible, clearly recognizable physical features for municipal boundaries.
(d) The chief administrative law judge may deny sanitary district dissolution if the
area, or a part thereof, would be better served by an alternative method.
(e) In all cases, the chief administrative law judge shall set forth the factors that are
the basis for the decision.
    Subd. 6. Findings; order. (a) After the public notice period or the public hearing, if
required under subdivision 3, and based on the petition, any public comments received,
and, if a hearing was held, the hearing record, the chief administrative law judge shall
make findings of fact and conclusions determining whether the conditions requisite for
the sanitary district dissolution exist in the territory described in the petition. If the chief
administrative law judge finds that conditions exist, the judge may make an order for
sanitary district dissolution for the territory described in the petition.
(b) If the chief administrative law judge determines that the conditions requisite for
the creation of the district no longer exist therein, that all indebtedness of the district has
been paid, and that all property of the district except funds has been disposed of, the judge
may make an order dissolving the district and directing the distribution of its remaining
funds, if any, among the related governmental subdivisions on such basis as the chief
administrative law judge determines to be just and equitable, to be specified in the order.
    Subd. 7. Denial of petition. If the chief administrative law judge, after conclusion
of the public notice period or holding a hearing, if required, determines that the sanitary
district dissolution in the territory described in the petition is not warranted, the judge
shall make an order denying the petition. The chief administrative law judge shall give
notice of the denial by mail or e-mail to each signer of the petition. No petition for the
dissolution of a district consisting of the same territory shall be entertained within a year
after the date of an order under this subdivision.
    Subd. 8. Notice of order for sanitary district dissolution. The chief administrative
law judge shall publish in the State Register a notice of the final order for sanitary
district dissolution, referring to the date of the order and describing the territory of the
dissolved district and shall mail or e-mail information of the publication to each property
owner in the affected territory at the owner's address as given by the county auditor. The
information must state the date that the notice will appear in the State Register and give
the Web site location of the State Register. The notice must:
(1) describe the petition for dissolution of the district;
(2) describe the territory affected by the petition; and
(3) state that a certified copy of the order shall be delivered to the secretary of state
for filing ten days after public notice of the order in the State Register.
    Subd. 9. Filing. (a) Ten days after public notice of the order in the State Register,
the chief administrative law judge shall deliver a certified copy of the order to the secretary
of state for filing. Thereupon, the sanitary district dissolution is deemed complete, and it
shall be conclusively presumed that all requirements of law relating thereto have been
complied with. The chief administrative law judge shall also transmit a certified copy of
the order for filing to the county auditor of each county and the clerk or recorder of each
municipality and organized town wherein any part of the territory of the dissolved district
is situated and to the secretary of the district board.
(b) The chief administrative law judge shall also transmit a certified copy of the order
to the treasurer of the district, who must thereupon distribute the remaining funds of the
district as directed by the order and who is responsible for the funds until so distributed.

    Sec. 10. [442A.08] JOINT PUBLIC INFORMATIONAL MEETING.
There must be a joint public informational meeting of the local governments of any
proposed sanitary district creation, annexation, detachment, or dissolution. The joint public
informational meeting must be held after the final mediation meeting or the final meeting
held according to section 442A.02, subdivision 8, if any, and before the hearing on the
matter is held. If no mediation meetings are held, the joint public informational meeting
must be held after the initiating documents have been filed and before the hearing on the
matter. The time, date, and place of the public informational meeting must be determined
jointly by the local governments in the proposed creation, annexation, detachment, or
dissolution areas and by the sanitary district, if one exists. The chair of the sanitary district,
if one exists, and the responsible official for one of the local governments represented at
the meeting must serve as the co-chairs for the informational meeting. Notice of the time,
date, place, and purpose of the informational meeting must be posted by the sanitary
district, if one exists, and local governments in designated places for posting notices. The
sanitary district, if one exists, and represented local governments must also publish, at their
own expense, notice in their respective official newspapers. If the same official newspaper
is used by multiple local government representatives or the sanitary district, a joint notice
may be published and the costs evenly divided. All notice required by this section must
be provided at least ten days before the date for the public informational meeting. At the
public informational meeting, all persons appearing must have an opportunity to be heard,
but the co-chairs may, by mutual agreement, establish the amount of time allowed for each
speaker. The sanitary district board, the local government representatives, and any resident
or affected property owner may be represented by counsel and may place into the record of
the informational meeting documents, expert opinions, or other materials supporting their
positions on issues raised by the proposed proceeding. The secretary of the sanitary district,
if one exists, or a person appointed by the chair must record minutes of the proceedings of
the informational meeting and must make an audio recording of the informational meeting.
The sanitary district, if one exists, or a person appointed by the chair must provide the
chief administrative law judge and the represented local governments with a copy of the
printed minutes and must provide the chief administrative law judge and the represented
local governments with a copy of the audio recording. The record of the informational
meeting for a proceeding under section 442A.04, 442A.05, 442A.06, or 442A.07 is
admissible in any proceeding under this chapter and shall be taken into consideration by
the chief administrative law judge or the chief administrative law judge's designee.

    Sec. 11. [442A.09] ANNEXATION BY ORDER OF POLLUTION CONTROL
AGENCY.
    Subdivision 1. Annexation by ordinance alternative. If a determination or order
by the Minnesota Pollution Control Agency under section 115.49 or other similar statute is
made that cooperation by contract is necessary and feasible between a sanitary district and
an unincorporated area located outside the existing corporate limits of the sanitary district,
the sanitary district required to provide or extend through a contract a governmental
service to an unincorporated area, during the statutory 90-day period provided in section
115.49 to formulate a contract, may in the alternative to formulating a service contract to
provide or extend the service, declare the unincorporated area described in the Minnesota
Pollution Control Agency's determination letter or order annexed to the sanitary district by
adopting an ordinance and submitting it to the chief administrative law judge.
    Subd. 2. Chief administrative law judge's role. The chief administrative law
judge may review and comment on the ordinance but shall approve the ordinance within
30 days of receipt. The ordinance is final and the annexation is effective on the date the
chief administrative law judge approves the ordinance.

    Sec. 12. [442A.10] PETITIONERS TO PAY EXPENSES.
Expenses of the preparation and submission of petitions in the proceedings under
sections 442A.04 to 442A.09 shall be paid by the petitioners. Notwithstanding section
16A.1283, the Office of Administrative Hearings may adopt rules according to section
14.386 to establish fees necessary to support the preparation and submission of petitions
in proceedings under sections 442A.04 to 442A.09. The fees collected by the Office of
Administrative Hearings shall be deposited in the environmental fund.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 13. [442A.11] TIME LIMITS FOR ORDERS; APPEALS.
    Subdivision 1. Orders; time limit. All orders in proceedings under this chapter
shall be issued within one year from the date of the first hearing thereon, provided that
the time may be extended for a fixed additional period upon consent of all parties of
record. Failure to so order shall be deemed to be an order denying the matter. An appeal
may be taken from such failure to so order in the same manner as an appeal from an
order as provided in subdivision 2.
    Subd. 2. Grounds for appeal. (a) Any person aggrieved by an order issued under
this chapter may appeal to the district court upon the following grounds:
(1) the order was issued without jurisdiction to act;
(2) the order exceeded the jurisdiction of the presiding administrative law judge;
(3) the order was arbitrary, fraudulent, capricious, or oppressive or in unreasonable
disregard of the best interests of the territory affected; or
(4) the order was based upon an erroneous theory of law.
(b) The appeal must be taken in the district court in the county in which the majority
of the area affected is located. The appeal does not stay the effect of the order. All notices
and other documents must be served on both the chief administrative law judge and the
attorney general's assistant assigned to the chief administrative law judge for purposes
of this chapter.
(c) If the court determines that the action involved is unlawful or unreasonable or is
not warranted by the evidence in case an issue of fact is involved, the court may vacate or
suspend the action involved, in whole or in part, as the case requires. The matter shall then
be remanded for further action in conformity with the decision of the court.
(d) To render a review of an order effectual, the aggrieved person shall file with the
court administrator of the district court of the county in which the majority of the area is
located, within 30 days of the order, an application for review together with the grounds
upon which the review is sought.
(e) An appeal lies from the district court as in other civil cases.

    Sec. 14. [442A.12] CHIEF ADMINISTRATIVE LAW JUDGE MAY APPEAL
FROM DISTRICT COURT.
An appeal may be taken under the Rules of Civil Appellate Procedure by the chief
administrative law judge from a final order or judgment made or rendered by the district
court when the chief administrative law judge determines that the final order or judgment
adversely affects the public interest.

    Sec. 15. [442A.13] UNIFORM PROCEDURES.
    Subdivision 1. Hearings. (a) Proceedings initiated by the submission of an initiating
document or by the chief administrative law judge shall come on for hearing within 30 to
60 days from receipt of the document by the chief administrative law judge or from the
date of the chief administrative law judge's action and the person conducting the hearing
must submit an order no later than one year from the date of the first hearing.
(b) The place of the hearing shall be in the county where a majority of the affected
territory is situated, and shall be established for the convenience of the parties.
(c) The chief administrative law judge shall mail notice of the hearing to the
following parties: the sanitary district; any township or municipality presently governing
the affected territory; any township or municipality abutting the affected territory;
the county where the affected territory is situated; and each planning agency that has
jurisdiction over the affected area.
(d) The chief administrative law judge shall see that notice of the hearing is published
for two successive weeks in a legal newspaper of general circulation in the affected area.
(e) When the chief administrative law judge exercises authority to change the
boundaries of the affected area so as to increase the quantity of land, the hearing shall
be recessed and reconvened upon two weeks' published notice in a legal newspaper of
general circulation in the affected area.
    Subd. 2. Transmittal of order. The chief administrative law judge shall see that
copies of the order are mailed to all parties entitled to mailed notice of hearing under
subdivision 1, individual property owners if initiated in that manner, and any other party
of record.

    Sec. 16. [442A.14] DISTRICT BOARD OF MANAGERS.
    Subdivision 1. Composition. The governing body of each district shall be a board
of managers of five members, who shall be voters residing in the district and who may
but need not be officers, members of governing bodies, or employees of the related
governmental subdivisions, except that when there are more than five territorial units in
a district, there must be one board member for each unit.
    Subd. 2. Terms. The terms of the first board members elected after creation of a
district shall be so arranged and determined by the electing body as to expire on the first
business day in January as follows:
(1) the terms of two members in the second calendar year after the year in which
they were elected;
(2) the terms of two other members in the third calendar year after the year in which
they were elected; and
(3) the term of the remaining member in the fourth calendar year after the year in
which the member was elected. In case a board has more than five members, the additional
members shall be assigned to the groups under clauses (1) to (3) to equalize the groups as
far as practicable. Thereafter, board members shall be elected successively for regular
terms beginning upon expiration of the preceding terms and expiring on the first business
day in January of the third calendar year thereafter. Each board member serves until
a successor is elected and has qualified.
    Subd. 3. Election of board. In a district having only one territorial unit, all the
members of the board shall be elected by the related governing body. In a district having
more than one territorial unit, the members of the board shall be elected by the members
of the related governing bodies in joint session except as otherwise provided. The electing
bodies concerned shall meet and elect the first board members of a new district as soon
as practicable after creation of the district and shall meet and elect board members for
succeeding regular terms as soon as practicable after November 1 next preceding the
beginning of the terms to be filled, respectively.
    Subd. 4. Central related governing body. Upon the creation of a district
having more than one territorial unit, the chief administrative law judge, on the basis of
convenience for joint meeting purposes, shall designate one of the related governing
bodies as the central related governing body in the order creating the district or in a
subsequent special order, of which the chief administrative law judge shall notify the
clerks or recorders of all the related governing bodies. Upon receipt of the notification,
the clerk or recorder of the central related governing body shall immediately transmit the
notification to the presiding officer of the body. The officer shall thereupon call a joint
meeting of the members of all the related governing bodies to elect board members, to
be held at such time as the officer shall fix at the regular meeting place of the officer's
governing body or at such other place in the district as the officer shall determine. The
clerk or recorder of the body must give at least ten days' notice of the meeting by mail to
the clerks or recorders of all the other related governing bodies, who shall immediately
transmit the notice to all the members of the related governing bodies, respectively.
Subsequent joint meetings to elect board members for regular terms must be called and
held in like manner. The presiding officer and the clerk or recorder of the central related
governing body shall act respectively as chair and secretary of the joint electing body at
any meeting thereof, but in case of the absence or disability of either of them, the body
may elect a temporary substitute. A majority of the members of each related governing
body is required for a quorum at any meeting of the joint electing body.
    Subd. 5. Nominations. Nominations for board members may be made by petitions,
each signed by ten or more voters residing and owning land in the district, filed with the
clerk, recorder, or secretary of the electing body before the election meeting. No person
shall sign more than one petition. The electing body shall give due consideration to all
nominations but is not limited thereto.
    Subd. 6. Election; single governing body. In the case of an electing body
consisting of a single related governing body, a majority vote of all members is required
for an election. In the case of a joint electing body, a majority vote of members present is
required for an election. In case of lack of a quorum or failure to elect, a meeting of an
electing body may be adjourned to a stated time and place without further notice.
    Subd. 7. Election; multiple governing bodies. In any district having more than
one territorial unit, the related governing bodies, instead of meeting in joint session, may
elect a board member by resolutions adopted by all of them separately, concurring in the
election of the same person. A majority vote of all members of each related governing
body is required for the adoption of any such resolution. The clerks or recorders of the
other related governing bodies shall transmit certified copies of the resolutions to the clerk
or recorder of the central related governing body. Upon receipt of concurring resolutions
from all the related governing bodies, the presiding officer and clerk or recorder of the
central related governing body shall certify the results and furnish certificates of election
as provided for a joint meeting.
    Subd. 8. Vacancies. Any vacancy in the membership of a board must be filled for
the unexpired term in like manner as provided for the regular election of board members.
    Subd. 9. Certification of election; temporary chair. The presiding and recording
officers of the electing body shall certify the results of each election to the county auditor
of each county wherein any part of the district is situated and to the clerk or recorder of
each related governing body and shall make and transmit to each board member elected
a certificate of the board member's election. Upon electing the first board members of a
district, the presiding officer of the electing body shall designate a member to serve as
temporary chair for purposes of initial organization of the board, and the recording
officer of the body shall include written notice thereof to all the board members with
their certificates of election.

    Sec. 17. [442A.15] BOARD ORGANIZATION AND PROCEDURES.
    Subdivision 1. Initial, annual meetings. As soon as practicable after the election
of the first board members of a district, the board shall meet at the call of the temporary
chair to elect officers and take other appropriate action for organization and administration
of the district. Each board shall hold a regular annual meeting at the call of the chair or
otherwise as the board prescribes on or as soon as practicable after the first business day in
January of each year and such other regular and special meetings as the board prescribes.
    Subd. 2. Officers. The officers of each district shall be a chair and a vice-chair,
who shall be members of the board, and a secretary and a treasurer, who may but need
not be members of the board. The board of a new district at its initial meeting or as soon
thereafter as practicable shall elect the officers to serve until the first business day in
January next following. Thereafter, the board shall elect the officers at each regular annual
meeting for terms expiring on the first business day in January next following. Each
officer serves until a successor is elected and has qualified.
    Subd. 3. Meeting place; offices. The board at its initial meeting or as soon
thereafter as practicable shall provide for suitable places for board meetings and for offices
of the district officers and may change the same thereafter as the board deems advisable.
The meeting place and offices may be the same as those of any related governing body,
with the approval of the body. The secretary of the board shall notify the secretary of state,
the county auditor of each county wherein any part of the district is situated, and the clerk
or recorder of each related governing body of the locations and post office addresses of the
meeting place and offices and any changes therein.
    Subd. 4. Budget. At any time before the proceeds of the first tax levy in a district
become available, the district board may prepare a budget comprising an estimate of the
expenses of organizing and administering the district until the proceeds are available, with
a proposal for apportionment of the estimated amount among the related governmental
subdivisions, and may request the governing bodies thereof to advance funds according to
the proposal. The governing bodies may authorize advancement of the requested amounts,
or such part thereof as they respectively deem proper, from any funds available in their
respective treasuries. The board shall include in its first tax levy after receipt of any such
advancements a sufficient sum to cover the same and shall cause the same to be repaid,
without interest, from the proceeds of taxes as soon as received.

    Sec. 18. [442A.16] DISTRICT STATUS AND POWERS.
    Subdivision 1. Status. Every district shall be a public corporation and a governmental
subdivision of the state and shall be deemed to be a municipality or municipal corporation
for the purpose of obtaining federal or state grants or loans or otherwise complying with
any provision of federal or state law or for any other purpose relating to the powers and
purposes of the district for which such status is now or hereafter required by law.
    Subd. 2. Powers and purpose. Every district shall have the powers and purposes
prescribed by this chapter and such others as may now or hereafter be prescribed by law.
No express grant of power or enumeration of powers herein shall be deemed to limit the
generality or scope of any grant of power.
    Subd. 3. Scope of powers and duties. Except as otherwise provided, a power or
duty vested in or imposed upon a district or any of its officers, agents, or employees shall
not be deemed exclusive and shall not supersede or abridge any power or duty vested in or
imposed upon any other agency of the state or any governmental subdivision thereof, but
shall be supplementary thereto.
    Subd. 4. Exercise of power. All the powers of a district shall be exercised by its
board of managers except so far as approval of any action by popular vote or by any other
authority may be expressly required by law.
    Subd. 5. Lawsuits; contracts. A district may sue and be sued and may enter into
any contract necessary or proper for the exercise of its powers or the accomplishment
of its purposes.
    Subd. 6. Property acquisition. A district may acquire by purchase, gift, or
condemnation or may lease or rent any real or personal property within or without the
district that may be necessary for the exercise of district powers or the accomplishment of
district purposes, may hold the property for such purposes, and may lease, rent out, sell, or
otherwise dispose of any property not needed for such purposes.
    Subd. 7. Acceptance of money or property. A district may accept gifts, grants,
or loans of money or other property from the United States, the state, or any person,
corporation, or other entity for district purposes; may enter into any agreement required in
connection therewith; and may hold, use, and dispose of the money or property according
to the terms of the gift, grant, loan, or agreement relating thereto.

    Sec. 19. [442A.17] SPECIFIC PURPOSES AND POWERS.
    Subdivision 1. Pollution prevention. A district may construct, install, improve,
maintain, and operate any system, works, or facilities within or without the district
required to control and prevent pollution of any waters of the state within its territory.
    Subd. 2. Sewage disposal. A district may construct, install, improve, maintain,
and operate any system, works, or facilities within or without the district required to
provide for, regulate, and control the disposal of sewage, industrial waste, and other waste
originating within its territory. The district may require any person upon whose premises
there is any source of sewage, industrial waste, or other waste within the district to
connect the premises with the disposal system, works, or facilities of the district whenever
reasonable opportunity therefor is provided.
    Subd. 3. Garbage, refuse disposal. A district may construct, install, improve,
maintain, and operate any system, works, or facilities within or without the district required
to provide for, regulate, and control the disposal of garbage or refuse originating within the
district. The district may require any person upon whose premises any garbage or refuse is
produced or accumulated to dispose of the garbage or refuse through the system, works, or
facilities of the district whenever reasonable opportunity therefor is provided.
    Subd. 4. Water supply. A district may procure supplies of water necessary for any
purpose under subdivisions 1 to 3 and may construct, install, improve, maintain, and
operate any system, works, or facilities required therefor within or without the district.
    Subd. 5. Roads. (a) To maintain the integrity of and facilitate access to district
systems, works, or facilities, the district may maintain and repair a road by agreement with
the entity that was responsible for the performance of maintenance and repair immediately
prior to the agreement. Maintenance and repair includes but is not limited to providing
lighting, snow removal, and grass mowing.
(b) A district shall establish a taxing subdistrict of benefited property and shall levy
special taxes, pursuant to section 442A.24, subdivision 2, for the purposes of paying the
cost of improvement or maintenance of a road under paragraph (a).
(c) For purposes of this subdivision, a district shall not be construed as a road
authority under chapter 160.
(d) The district and its officers and employees are exempt from liability for any tort
claim for injury to person or property arising from travel on a road maintained by the
district and related to the road's maintenance or condition.

    Sec. 20. [442A.18] DISTRICT PROJECTS AND FACILITIES.
    Subdivision 1. Public property. For the purpose of constructing, improving,
maintaining, or operating any system, works, or facilities designed or used for any purpose
under section 442A.17, a district, its officers, agents, employees, and contractors may enter,
occupy, excavate, and otherwise operate in, upon, under, through, or along any public
highway, including a state trunk highway, or any street, park, or other public grounds so
far as necessary for such work, with the approval of the governing body or other authority
in charge of the public property affected and on such terms as may be agreed upon with the
governing body or authority respecting interference with public use, restoration of previous
conditions, compensation for damages, and other pertinent matters. If an agreement cannot
be reached after reasonable opportunity therefor, the district may acquire the necessary
rights, easements, or other interests in the public property by condemnation, subject to all
applicable provisions of law as in case of taking private property, upon condition that the
court shall determine that there is paramount public necessity for the acquisition.
    Subd. 2. Use of other systems. A district may, upon such terms as may be
agreed upon with the respective governing bodies or authorities concerned, provide for
connecting with or using; lease; or acquire and take over any system, works, or facilities
for any purpose under section 442A.17 belonging to any other governmental subdivision
or other public agency.
    Subd. 3. Use by other governmental bodies. A district may, upon such terms
as may be agreed upon with the respective governing bodies or authorities concerned,
authorize the use by any other governmental subdivision or other public agency of any
system, works, or facilities of the district constructed for any purpose under section
442A.17 so far as the capacity thereof is sufficient beyond the needs of the district. A
district may extend any such system, works, or facilities and permit the use thereof by
persons outside the district, so far as the capacity thereof is sufficient beyond the needs of
the district, upon such terms as the board may prescribe.
    Subd. 4. Joint projects. A district may be a party to a joint cooperative project,
undertaking, or enterprise with one or more other governmental subdivisions or other
public agencies for any purpose under section 442A.17 upon such terms as may be
agreed upon between the governing bodies or authorities concerned. Without limiting the
effect of the foregoing provision or any other provision of this chapter, a district, with
respect to any of said purposes, may act under and be subject to section 471.59, or any
other appropriate law providing for joint or cooperative action between governmental
subdivisions or other public agencies.

    Sec. 21. [442A.19] CONTROL OF SANITARY FACILITIES.
A district may regulate and control the construction, maintenance, and use of privies,
cesspools, septic tanks, toilets, and other facilities and devices for the reception or disposal
of human or animal excreta or other domestic wastes within its territory so far as necessary
to prevent nuisances or pollution or to protect the public health, safety, and welfare
and may prohibit the use of any such facilities or devices not connected with a district
disposal system, works, or facilities whenever reasonable opportunity for such connection
is provided; provided, that the authority of a district under this section does not extend
or apply to the construction, maintenance, operation, or use by any person other than the
district of any disposal system or part thereof within the district under and in accordance
with a valid and existing permit issued by the Minnesota Pollution Control Agency.

    Sec. 22. [442A.20] DISTRICT PROGRAMS, SURVEYS, AND STUDIES.
A district may develop general programs and particular projects within the scope of
its powers and purposes and may make all surveys, studies, and investigations necessary
for the programs and projects.

    Sec. 23. [442A.21] GENERAL AND MUNICIPALITY POWERS.
A district may do and perform all other acts and things necessary or proper for the
effectuation of its powers and the accomplishment of its purposes. Without limiting the
effect of the foregoing provision or any other provision of this chapter, a district, with
respect to each and all of said powers and purposes, shall have like powers as are vested
in municipalities with respect to any similar purposes. The exercise of such powers by a
district and all matters pertaining thereto are governed by the law relating to the exercise
of similar powers by municipalities and matters pertaining thereto, so far as applicable,
with like force and effect, except as otherwise provided.

    Sec. 24. [442A.22] ADVISORY COMMITTEE.
A district board of managers may appoint an advisory committee with membership
and duties as the board prescribes.

    Sec. 25. [442A.23] BOARD POWERS.
    Subdivision 1. Generally. The board of managers of every district shall have charge
and control of all the funds, property, and affairs of the district. With respect thereto, the
board has the same powers and duties as are provided by law for a municipality with respect
to similar municipal matters, except as otherwise provided. Except as otherwise provided,
the chair, vice-chair, secretary, and treasurer of the district have the same powers and duties,
respectively, as the mayor, acting mayor, clerk, and treasurer of a municipality. Except as
otherwise provided, the exercise of the powers and the performance of the duties of the
board and officers of the district and all other activities, transactions, and procedures of the
district or any of its officers, agents, or employees, respectively, are governed by the law
relating to similar matters in a municipality, so far as applicable, with like force and effect.
    Subd. 2. Regulation of district. The board may enact ordinances, prescribe
regulations, adopt resolutions, and take other appropriate action relating to any matter
within the powers and purposes of the district and may do and perform all other acts and
things necessary or proper for the effectuation of said powers and the accomplishment
of said purposes. The board may provide that violation of a district ordinance is a penal
offense and may prescribe penalties for violations, not exceeding those prescribed by
law for violation of municipal ordinances.
    Subd. 3. Arrest; prosecution. (a) Violations of district ordinances may be
prosecuted before any court having jurisdiction of misdemeanors. Any peace officer may
make arrests for violations committed anywhere within the district in the same manner as
for violations of city ordinances or for statutory misdemeanors.
(b) All fines collected shall be deposited in the treasury of the district.

    Sec. 26. [442A.24] TAX LEVIES, ASSESSMENTS, AND SERVICE CHARGES.
    Subdivision 1. Tax levies. The board may levy taxes for any district purpose on all
property taxable within the district.
    Subd. 2. Particular area. In the case where a particular area within the district,
but not the entire district, is benefited by a system, works, or facilities of the district,
the board, after holding a public hearing as provided by law for levying assessments on
benefited property, shall by ordinance establish such area as a taxing subdistrict, to be
designated by number, and shall levy special taxes on all the taxable property therein, to be
accounted for separately and used only for the purpose of paying the cost of construction,
improvement, acquisition, maintenance, or operation of such system, works, or facilities,
or paying the principal and interest on bonds issued to provide funds therefor and expenses
incident thereto. The hearing may be held jointly with a hearing for the purpose of levying
assessments on benefited property within the proposed taxing subdistrict.
    Subd. 3. Benefited property. The board shall levy assessments on benefited property
to provide funds for payment of the cost of construction, improvement, or acquisition of
any system, works, or facilities designed or used for any district purpose or for payment of
the principal of and interest on any bonds issued therefor and expenses incident thereto.
    Subd. 4. Service charges. The board shall prescribe service, use, or rental charges
for persons or premises connecting with or making use of any system, works, or facilities
of the district; prescribe the method of payment and collection of the charges; and provide
for the collection thereof for the district by any related governmental subdivision or
other public agency on such terms as may be agreed upon with the governing body or
other authority thereof.

    Sec. 27. [442A.25] BORROWING POWERS; BONDS.
    Subdivision 1. Borrowing power. The board may authorize the borrowing of
money for any district purpose and provide for the repayment thereof, subject to chapter
475. The taxes initially levied by any district according to section 475.61 for the payment
of district bonds, upon property within each municipality included in the district, shall be
included in computing the levy of the municipality.
    Subd. 2. Bond issuance. The board may authorize the issuance of bonds or
obligations of the district to provide funds for the construction, improvement, or
acquisition of any system, works, or facilities for any district purpose or for refunding
any prior bonds or obligations issued for any such purpose and may pledge the full faith
and credit of the district; the proceeds of tax levies or assessments; service, use, or
rental charges; or any combination thereof to the payment of such bonds or obligations
and interest thereon or expenses incident thereto. An election or vote of the people of
the district is required to authorize the issuance of any bonds or obligations. Except as
otherwise provided in this chapter, the forms and procedures for issuing and selling bonds
and provisions for payment thereof must comply with chapter 475.

    Sec. 28. [442A.26] FUNDS; DISTRICT TREASURY.
The proceeds of all tax levies, assessments, service, use, or rental charges, and
other income of the district must be deposited in the district treasury and must be held
and disposed of as the board may direct for district purposes, subject to any pledges or
dedications made by the board for the use of particular funds for the payment of bonds,
interest thereon, or expenses incident thereto or for other specific purposes.

    Sec. 29. [442A.27] EFFECT OF DISTRICT ORDINANCES AND FACILITIES.
In any case where an ordinance is enacted or a regulation adopted by a district
board relating to the same subject matter and applicable in the same area as an existing
ordinance or regulation of a related governmental subdivision for the district, the district
ordinance or regulation, to the extent of its application, supersedes the ordinance or
regulation of the related governmental subdivision. In any case where an area within a
district is served for any district purpose by a system, works, or facilities of the district,
no system, works, or facilities shall be constructed, maintained, or operated for the same
purpose in the same area by any related governmental subdivision or other public agency
except as approved by the district board.

    Sec. 30. [442A.28] APPLICATION.
This chapter does not abridge or supersede any authority of the Minnesota Pollution
Control Agency or the commissioner of health, but is subject and supplementary thereto.
Districts and members of district boards are subject to the authority of the Minnesota
Pollution Control Agency and have no power or authority to abate or control pollution that
is permitted by and in accord with any classification of waters, standards of water quality,
or permit established, fixed, or issued by the Minnesota Pollution Control Agency.

    Sec. 31. [442A.29] CHIEF ADMINISTRATIVE LAW JUDGE'S POWERS.
    Subdivision 1. Alternative dispute resolution. (a) Notwithstanding sections
442A.01 to 442A.28, before assigning a matter to an administrative law judge for hearing,
the chief administrative law judge, upon consultation with affected parties and considering
the procedures and principles established in sections 442A.01 to 442A.28, may require
that disputes over proposed sanitary district creations, attachments, detachments, or
dissolutions be addressed in whole or in part by means of alternative dispute resolution
processes in place of, or in connection with, hearings that would otherwise be required
under sections 442A.01 to 442A.28, including those provided in chapter 14.
(b) In all proceedings, the chief administrative law judge has the authority and
responsibility to conduct hearings and issue final orders related to the hearings under
sections 442A.01 to 442A.28.
    Subd. 2. Cost of proceedings. (a) The parties to any matter directed to alternative
dispute resolution under subdivision 1 must pay the costs of the alternative dispute
resolution process or hearing in the proportions that the parties agree to.
(b) Notwithstanding section 14.53 or other law, the Office of Administrative
Hearings is not liable for the costs.
(c) If the parties do not agree to a division of the costs before the commencement of
mediation, arbitration, or hearing, the costs must be allocated on an equitable basis by
the mediator, arbitrator, or chief administrative law judge.
(d) The chief administrative law judge may contract with the parties to a matter for
the purpose of providing administrative law judges and reporters for an administrative
proceeding or alternative dispute resolution.
(e) The chief administrative law judge shall assess the cost of services rendered by
the Office of Administrative Hearings as provided by section 14.53.
    Subd. 3. Parties. In this section, "party" means:
(1) a property owner, group of property owners, sanitary district, municipality, or
township that files an initiating document or timely objection under this chapter;
(2) the sanitary district, municipality, or township within which the subject area
is located;
(3) a municipality abutting the subject area; and
(4) any other person, group of persons, or governmental agency residing in, owning
property in, or exercising jurisdiction over the subject area that submits a timely request
and is determined by the presiding administrative law judge to have a direct legal interest
that will be affected by the outcome of the proceeding.
    Subd. 4. Effectuation of agreements. Matters resolved or agreed to by the parties
as a result of an alternative dispute resolution process, or otherwise, may be incorporated
into one or more stipulations for purposes of further proceedings according to the
applicable procedures and statutory criteria of this chapter.
    Subd. 5. Limitations on authority. Nothing in this section shall be construed to
permit a sanitary district, municipality, town, or other political subdivision to take, or
agree to take, an action that is not otherwise authorized by this chapter.

    Sec. 32. REPEALER.
Minnesota Statutes 2012, sections 115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, and 10;
115.19; 115.20; 115.21; 115.22; 115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29;
115.30; 115.31; 115.32; 115.33; 115.34; 115.35; 115.36; and 115.37, are repealed.

    Sec. 33. EFFECTIVE DATE.
Unless otherwise provided in this article, sections 1 to 32 are effective August 1, 2013.
Presented to the governor May 22, 2013
Signed by the governor May 23, 2013, 11:31 a.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