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

CHAPTER 6--S.F.No. 6
An act
relating to state government; appropriating money from the outdoor
heritage fund, clean water fund, parks and trails fund, and arts and cultural
heritage fund; modifying certain outdoor heritage provisions; establishing
accounts; creating state recreation area; modifying restoration evaluations;
modifying grant programs; modifying accountability requirements; modifying
definitions; modifying the Clean Water Legacy Act; modifying Clean Water
Council; establishing State Capitol Preservation Commission; providing
for Capitol building powers and duties; providing appointments; modifying
reporting and other requirements for legacy fund recipients; modifying
previous appropriations; requiring reports;amending Minnesota Statutes 2010,
sections 3.303, subdivision 10; 10A.01, subdivision 35; 85.013, by adding a
subdivision; 85.53, subdivisions 2, 5; 97A.056, subdivisions 2, 3, 6, 9, 10, by
adding subdivisions; 114D.10; 114D.20, subdivisions 1, 2, 3, 6, 7; 114D.30;
114D.35; 114D.50, subdivisions 4, 6; 116.195; 129D.17, subdivision 2; 129D.18,
subdivisions 3, 4; 129D.19, subdivision 5; Laws 2009, chapter 172, article 1,
section 2, subdivisions 3, 15; article 2, section 4, as amended; article 4, section
9, subdivision 5; Laws 2010, chapter 361, article 1, section 2, subdivision 14;
article 2, section 3; proposing coding for new law in Minnesota Statutes, chapters
15B; 16B; 84; 138; repealing Minnesota Statutes 2010, section 114D.45.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1
OUTDOOR HERITAGE FUND


Section 1. OUTDOOR HERITAGE APPROPRIATION.
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
outdoor heritage fund and are available for the fiscal years indicated for each purpose. The
figures "2012" and "2013" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2012, or June 30, 2013, respectively.
"The first year" is fiscal year 2012. "The second year" is fiscal year 2013. "The biennium"
is fiscal years 2012 and 2013. The appropriations in this article are onetime.

APPROPRIATIONS

Available for the Year

Ending June 30

2012
2013


Sec. 2. OUTDOOR HERITAGE

Subdivision 1.Total Appropriation
$
86,484,000
$
471,000
This appropriation is from the outdoor
heritage fund. The amounts that may be
spent for each purpose are specified in the
following subdivisions.

Subd. 2.Prairies
32,671,000
-0-
(a) Wildlife Management Area, Scientific
and Natural Areas, and Prairie Bank
Easement Acquisition - Phase III
$3,931,000 the first year is to the
commissioner of natural resources to:
(1) acquire land in fee for wildlife
management area purposes under Minnesota
Statutes, sections 86A.05, subdivision 8, and
97A.145;
(2) acquire land in fee for scientific and
natural area purposes under Minnesota
Statutes, sections 84.033 and 86A.05,
subdivision 5; and
(3) acquire native prairie bank easements
under Minnesota Statutes, section 84.96.
A list of proposed land or permanent
conservation easement acquisitions must
be provided as part of the required
accomplishment plan. The accomplishment
plan must include an easement monitoring
and enforcement plan. Up to $14,000 is for
establishing a monitoring and enforcement
fund as approved in the accomplishment
plan, and subject to subdivision 15. An
annual financial report is required for
any monitoring and enforcement fund
established, including expenditures from the
fund.
(b) Accelerated Prairie Restoration and
Enhancement on DNR Lands - Phase III
$1,652,000 the first year is to the
commissioner of natural resources to
accelerate the restoration and enhancement
on wildlife management areas, scientific and
natural areas, and land under native prairie
bank easements.
(c) Minnesota Buffers for Wildlife and
Water
$2,249,000 the first year is to the Board of
Water and Soil Resources in cooperation
with Pheasants Forever to acquire permanent
conservation easements to enhance habitat
by expanding riparian wildlife buffers on
private land. A list of proposed easement
acquisitions must be provided as part of
the required accomplishment plan. The
accomplishment plan must include an
easement monitoring and enforcement
plan. Up to $200,000 is for establishing
a monitoring and enforcement fund as
approved in the accomplishment plan
and subject to subdivision 15. An annual
financial report is required for any monitoring
and enforcement fund established, including
expenditures from the fund.
(d) Northern Tallgrass Prairie National
Wildlife Refuge Land Acquisition - Phase
III
$1,720,000 the first year is to the
commissioner of natural resources for an
agreement with The Nature Conservancy
to acquire land or permanent easements
within the Northern Tallgrass Prairie Habitat
Preservation Area in western Minnesota for
addition to the Northern Tallgrass Prairie
National Wildlife Refuge. A list of proposed
land acquisitions must be provided as part
of the required accomplishment plan. The
accomplishment plan must include an
easement monitoring and enforcement plan.
(e) Minnesota Prairie Recovery Project -
Phase II
$4,500,000 the first year is to the
commissioner of natural resources for an
agreement with The Nature Conservancy to
acquire native prairie and savanna and restore
and enhance grasslands and savanna. A list of
proposed land acquisitions must be provided
as part of the required accomplishment plan.
Acquisitions, restorations, and enhancements
must be within the two existing and two
additional pilot focus areas contained in
the accomplishment plan. Annual income
statements and balance sheets for income
and expenses from land acquired with
appropriations from the outdoor heritage
fund must be submitted to the Lessard-Sams
Outdoor Heritage Council.
(f) Cannon River Headwaters Habitat
Complex - Phase I
$1,533,000 the first year is to the
commissioner of natural resources for an
agreement with The Trust for Public Land
to acquire and restore lands in the Cannon
River watershed for wildlife management
area purposes under Minnesota Statutes,
section 86A.05, subdivision 8, or aquatic
management areas under Minnesota Statutes,
sections 86A.05, subdivision 14, and
97C.02. A list of proposed land acquisitions
must be provided as part of the required
accomplishment plan.
(g) Accelerating the Wildlife Management
Area Program - Phase III
$5,500,000 the first year is to the
commissioner of natural resources for an
agreement with Pheasants Forever to acquire
prairie and other habitat areas for wildlife
management area purposes under Minnesota
Statutes, section 86A.05, subdivision
8. A list of proposed land acquisitions
must be provided as part of the required
accomplishment plan.
(h) Accelerating the Waterfowl Production
Area Program - Phase III
$9,815,000 the first year is to the
commissioner of natural resources for
an agreement with Pheasants Forever to
accelerate the acquisition of wetlands and
grasslands to be added to the waterfowl
production area system in Minnesota in
cooperation with the United States Fish and
Wildlife Service. A list of proposed land
acquisitions must be provided as part of the
required accomplishment plan.
(i) The Green Corridor Legacy Program -
Phase III
$1,771,000 the first year is to the
commissioner of natural resources for
an agreement with the Redwood Area
Development Corporation to acquire land
for wildlife management area purposes
under Minnesota Statutes, section 86A.05,
subdivision 8, or aquatic management areas
under Minnesota Statutes, sections 86A.05,
subdivision 14, and 97C.02. A list of
proposed land acquisitions must be provided
as part of the required accomplishment plan.

Subd. 3.Forests
14,371,000
-0-
(a) Minnesota Forests for the Future -
Phase III
$5,409,000 the first year is to the
commissioner of natural resources to
acquire forest and wetland habitat through
working forest easements and fee acquisition
under the Minnesota forests for the future
program pursuant to Minnesota Statutes,
section 84.66. A conservation easement
acquired with money appropriated under this
paragraph must comply with subdivision
13. A list of proposed land acquisitions
must be provided as part of the required
accomplishment plan. The accomplishment
plan must include an easement monitoring
and enforcement plan. Up to $150,000 is for
establishing a monitoring and enforcement
fund as approved in the accomplishment plan
and subject to subdivision 15. An annual
financial report is required for any monitoring
and enforcement fund established, including
expenditures from the fund.
(b) LaSalle Lake: Protecting Critical
Mississippi Headwaters Habitat
$4,632,000 the first year is to the
commissioner of natural resources for an
agreement with The Trust for Public Land
to acquire land adjacent to LaSalle Lake in
Hubbard County. A list of proposed land
acquisitions must be provided as part of
the required accomplishment plan. If the
acquisition is not completed by July 15,
2012, or if a balance remains after acquisition
of land, the money under this paragraph is
available for acquisition under subdivision
2, paragraph (a).
(c) Accelerated Forest Habitat
Enhancement - Phase II
$826,000 the first year is to the commissioner
of natural resources to restore and enhance
lands in state forests, pursuant to Minnesota
Statutes, section 89.021.
(d) Northeastern Minnesota Sharp-Tailed
Grouse Habitat Partnership - Phase II
$988,000 the first year is to the commissioner
of natural resources for an agreement with
Pheasants Forever in cooperation with the
Minnesota Sharp-Tailed Grouse Society
to acquire and enhance lands for wildlife
management area purposes under Minnesota
Statutes, section 86A.05, subdivision
8. A list of proposed land acquisitions
must be provided as part of the required
accomplishment plan.
(e) Lower Mississippi River Habitat
Partnership - Phase II
$707,000 the first year is to the commissioner
of natural resources to acquire and enhance
habitat in the lower Root River and
lower Zumbro River watersheds, pursuant
to Minnesota Statutes, section 86A.05,
subdivisions 7 and 8. A list of proposed land
acquisitions must be provided as part of the
required accomplishment plan.
(f) Protect Key Forest Habitat Lands in
Cass County - Phase II
$604,000 the first year is to the commissioner
of natural resources for an agreement with
Cass County to acquire land in fee for forest
wildlife habitat. A list of proposed land
acquisitions must be provided as part of the
required accomplishment plan.
(g) State Forest Acquisition
$1,205,000 the first year is to the
commissioner of natural resources to acquire
land in fee and permanent management
access easements for state forests under
Minnesota Statutes, section 86A.05,
subdivision 7. A list of proposed land
acquisitions must be provided as part of the
required accomplishment plan.

Subd. 4.Wetlands
15,827,000
-0-
(a) Reinvest in Minnesota Wetlands
Reserve Acquisition and Restoration
Program Partnership - Phase III
$13,000,000 the first year is to the Board
of Water and Soil Resources to acquire
permanent conservation easements and
restore wetlands and associated upland
habitat in cooperation with the United States
Department of Agriculture Wetlands Reserve
Program. A list of proposed land acquisitions
must be provided as part of the required
accomplishment plan. The accomplishment
plan must include an easement monitoring
and enforcement plan. Up to $112,000 is for
establishing a monitoring and enforcement
fund as approved in the accomplishment plan
and subject to subdivision 15. An annual
financial report is required for any monitoring
and enforcement fund established, including
expenditures from the fund and a description
of monitoring and enforcement activities.
(b) Accelerated Shallow Lakes and
Wetlands Restoration and Enhancement -
Phase III
$936,000 the first year is to the commissioner
of natural resources to develop engineering
designs for shallow lakes and wetlands and
restore and enhance shallow lakes.
(c) Shallow Lake Shoreland Protection:
Wild Rice Lakes
$1,891,000 the first year is to the Board of
Water and Soil Resources for an agreement
with Ducks Unlimited to acquire wild
rice lake shoreland habitat in fee and as
permanent conservation easements as
follows: $500,000 to the Department of
Natural Resources; $1,100,000 to the Board
of Water and Soil Resources; and $291,000
to Ducks Unlimited. A list of proposed
land acquisitions must be provided as
part of the required accomplishment plan.
The accomplishment plan must include
an easement monitoring and enforcement
plan. Up to $18,000 is for establishing
a monitoring and enforcement fund as
approved in the accomplishment plan
and subject to subdivision 15. An annual
financial report is required for any monitoring
and enforcement fund established, including
expenditures from the fund.

Subd. 5.Habitat
22,914,000
-0-
(a) Accelerated Aquatic Management
Area Habitat Program - Phase III
$6,500,000 the first year is to the
commissioner of natural resources to
acquire interests in land in fee or permanent
conservation easements for aquatic
management areas under Minnesota Statutes,
sections 86A.05, subdivision 14, and 97C.02,
and to restore and enhance aquatic habitat. A
list of proposed acquisitions and stream and
lake habitat restorations and enhancements
must be provided as part of the required
accomplishment plan. The accomplishment
plan must include an easement monitoring
and enforcement plan.
(b) Coldwater Fish Habitat Enhancement
Program - Phase III
$1,533,000 the first year is to the
commissioner of natural resources for an
agreement with Minnesota Trout Unlimited
to restore, enhance, and protect coldwater
river and stream habitats in Minnesota. A list
of proposed projects, describing types and
locations of restorations and enhancements,
must be provided as part of the required
accomplishment plan.
(c) Land Addition to the Janet Johnson
Memorial Wildlife Management Area
$577,000 the first year is to the commissioner
of natural resources for an agreement with
Chisago County to acquire land in fee to
be added to the Janet Johnson Memorial
Wildlife Management Area under Minnesota
Statutes, section 86A.05, subdivision
8. A list of proposed land acquisitions
must be provided as part of the required
accomplishment plan.
(d) Metro Big Rivers Habitat - Phase II
$5,000,000 the first year is to the
commissioner of natural resources for
agreements to acquire interests in land in
fee or permanent conservation easements
and to restore and enhance natural systems
associated with the Mississippi, Minnesota,
and St. Croix Rivers as follows: $960,000
to the Minnesota Valley National Wildlife
Refuge Trust, Inc.; $150,000 to Great
River Greening; $840,000 to Minnesota
Land Trust; $150,000 to Friends of the
Mississippi River; and $2,900,000 to The
Trust for Public Land. A list of proposed
projects, describing types and locations of
acquisitions, restorations, and enhancements,
must be provided as part of the required
accomplishment plan. The accomplishment
plan must include an easement monitoring
and enforcement plan. Money appropriated
from the outdoor heritage fund for easement
acquisition may be used to establish a
monitoring and enforcement fund as
approved in the accomplishment plan
and subject to subdivision 15. An annual
financial report is required for any monitoring
and enforcement fund established, including
expenditures from the fund.
(e) Protecting Sensitive Shorelands in
North Central Minnesota
$1,098,000 the first year is to the
commissioner of natural resources for
agreements with the Leech Lake Watershed
Foundation and the Minnesota Land Trust
as follows: $339,000 to the Leech Lake
Watershed Foundation; $741,000 to the
Minnesota Land Trust; and $18,000 to the
Department of Natural Resources to pay for
acquisition-related expenses and monitoring
costs of donated permanent conservation
easements on sensitive shorelands in north
central Minnesota. A list of proposed land
acquisitions must be provided as part of
the required accomplishment plan. The
accomplishment plan must include an
easement monitoring and enforcement
plan. Up to $342,000 is for establishing
a monitoring and enforcement fund as
approved in the accomplishment plan
and subject to subdivision 15. An annual
financial report is required for any monitoring
and enforcement fund established, including
expenditures from the fund.
(f) Restoring Native Habitat and Water
Quality to Shell Rock River - Phase II
$2,577,000 the first year is to the
commissioner of natural resources for
an agreement with the Shell Rock River
Watershed District to acquire land in fee
at the headwaters of the Shell Rock River
for aquatic management area purposes
under Minnesota Statutes, sections 86A.05,
subdivision 14, and 97C.02, to restore
and enhance aquatic habitat. The leases
for gravel mining existing at the time of
acquisition may not be extended and all gross
income generated from mining operations
must be transferred to the commissioner of
management and budget and credited to the
outdoor heritage fund. A list of proposed
land acquisitions must be provided as part of
the required accomplishment plan.
(g) Outdoor Heritage Conservation
Partners Grant Program - Phase III
$5,629,000 the first year is to the
commissioner of natural resources for a
program to provide competitive, matching
grants of up to $400,000 to local, regional,
state, and national organizations for
enhancement, restoration, or protection of
forests, wetlands, prairies, and habitat for
fish, game, or wildlife in Minnesota. Grants
shall not be made for activities required to
fulfill the duties of owners of lands subject
to conservation easements. Grants shall
not be made from appropriations in this
paragraph for projects that have a total
project cost exceeding $475,000. $319,000
of this appropriation may be spent for
personnel costs and other administrative
costs. Grantees may acquire land or interests
in land. Easements must be permanent.
Land acquired in fee must be open to
hunting and fishing during the open season
unless otherwise provided by state law. The
program shall require a match of at least ten
percent from nonstate sources for grants of
$100,000 or less and a match of at least 15
percent from nonstate sources for grants over
$100,000. Up to one-third of the match may
be in-kind resources. For grant applications
of $25,000 or less, the commissioner shall
provide a separate, simplified application
process. The criteria for evaluating grant
applications over $25,000 must include the
amount of habitat restored, enhanced, or
protected; local support; encouragement
of a local conservation culture; urgency;
capacity to achieve multiple benefits;
habitat benefits provided; consistency with
current conservation science; adjacency
to protected lands; full funding of the
project; supplementing existing funding;
public access for hunting and fishing during
the open season; sustainability; degree
of collaboration; and use of native plant
materials. All projects must conform to
the Minnesota statewide conservation and
preservation plan. Wildlife habitat projects
must also conform to the Minnesota wildlife
action plan. Subject to the evaluation
criteria and requirements of this paragraph
and Minnesota Statutes, the commissioner
of natural resources shall give priority to
organizations that have a history of receiving
or charter to receive private contributions
for local conservation or habitat projects
when evaluating projects of equal value. If
acquiring land or a conservation easement,
priority shall be given to projects associated
with existing wildlife management areas
under Minnesota Statutes, section 86A.05,
subdivision 8; scientific and natural areas
under Minnesota Statutes, sections 84.033
and 86A.05, subdivision 5; and aquatic
management areas under Minnesota Statutes,
sections 86A.05, subdivision 14, and 97C.02.
All restoration or enhancement projects
must be on land permanently protected by a
conservation easement or public ownership
or in public waters as defined in Minnesota
Statutes, section 103G.005, subdivision
15. Priority shall be given to restoration
and enhancement projects on public lands.
Subdivision 9 applies to grants awarded
under this paragraph. This appropriation is
available until June 30, 2015. No less than
five percent of the amount of each grant
must be held back from reimbursement until
the grant recipient has completed a grant
accomplishment report by the deadline and
in the form prescribed by and satisfactory to
the Lessard-Sams Outdoor Heritage Council.
The commissioner shall provide notice of the
grant program in the 2011 game and fish law
summaries that are prepared under Minnesota
Statutes, section 97A.051, subdivision 2.

Subd. 6.Administration
701,000
471,000
(a) Contract Management
$175,000 the first year is to the commissioner
of natural resources for contract management
duties assigned in this section. The
commissioner shall provide documentation
to the Legislative Coordinating Commission
on the expenditure of these funds.
(b) Legislative Coordinating Commission
(1) $471,000 the first year and $471,000
the second year are to the Legislative
Coordinating Commission for two years of
administrative expenses of the Lessard-Sams
Outdoor Heritage Council and for two years
of compensation and expense reimbursement
of council members.
(2) $13,000 the first year is to the Legislative
Coordinating Commission for the Web site
required under Minnesota Statutes, section
3.303, subdivision 10.
(c) Technical Evaluation Panel
$42,000 the first year is to the commissioner
of natural resources for a technical evaluation
panel to conduct up to ten restoration
evaluations under Minnesota Statutes,
section 97A.056, subdivision 10.

Subd. 7.Availability of Appropriation
Money appropriated in this section may
not be spent on activities unless they are
directly related to and necessary for a
specific appropriation and are specified
in the accomplishment plan. Money
appropriated in this section must not be
spent on indirect costs or other institutional
overhead charges that are not directly related
to and necessary for a specific appropriation.
Unless otherwise provided, the amounts
in this section are available until June 30,
2014, when projects must be completed and
final accomplishments reported. Funds for
restoration or enhancement are available
until June 30, 2016, or four years after
acquisition, whichever is later, in order to
complete restoration or enhancement work.
If a project receives federal funds, the time
period of the appropriation is extended to
equal the availability of federal funding.
Funds appropriated for fee title acquisition
of land may be used to restore, enhance, and
provide for the public use of land acquired
with the appropriation. Public use facilities
must have a minimal impact on habitat on
acquired lands.

Subd. 8.Accomplishment Plans
It is a condition of acceptance of the
appropriations made under this section that
the agency or entity using the appropriation
submit to the Lessard-Sams Outdoor
Heritage Council an accomplishment plan
and periodic accomplishment reports in
the form determined by the council. The
accomplishment plan must identify the
project manager responsible for expending
the appropriation and the final product. The
accomplishment plan must account for the
use of the appropriation and outcomes of
the expenditure in measures of wetlands,
prairies, forests, and fish, game, and wildlife
habitat restored, protected, and enhanced.
The plan must include an evaluation of
results. None of the money provided in this
section may be expended unless the council
has approved the pertinent accomplishment
plan.

Subd. 9.Project Requirements
(a) As a condition of accepting an
appropriation made under this section, an
agency or entity receiving an appropriation
must comply with this subdivision for any
project funded in whole or in part with funds
from the appropriation.
(b) All conservation easements acquired with
money appropriated under this section must:
(1) be permanent; (2) specify the parties to
the easement; (3) specify all of the provisions
of an agreement that are permanent; (4)
specify the habitat types and location
being protected; (5) where appropriate for
conservation or water protection outcomes,
require the grantor to employ practices
retaining water on the eased land as long as
practicable; (6) specify the responsibilities
of the parties for habitat enhancement and
restoration and the associated costs of these
activities; (7) be sent to the office of the
Lessard-Sams Outdoor Heritage Council; (8)
include a long-term stewardship plan and
identify the sources and amount of funding
for monitoring and enforcing the easement
agreement; and (9) identify the parties
responsible for monitoring and enforcing the
easement agreement.
(c) For all restorations, a recipient must
prepare and retain an ecological restoration
and management plan that, to the degree
practicable, is consistent with current
conservation science and ecological goals
for the restoration site. Consideration should
be given to soil, geology, topography, and
other relevant factors that would provide
the best chance for long-term success and
durability of the restoration projects. The
plan must include the proposed timetable for
implementing the restoration, including, but
not limited to, site preparation, establishment
of diverse plant species, maintenance, and
additional enhancement to establish the
restoration; identify long-term maintenance
and management needs of the restoration
and how the maintenance, management,
and enhancement will be financed; and use
current conservation science to achieve the
best restoration.
(d) For new lands acquired, a recipient
must prepare a restoration and management
plan in compliance with paragraph (c),
including identification of sufficient funding
for implementation.
(e) To ensure public accountability for the
use of public funds, a recipient must provide
to the Lessard-Sams Outdoor Heritage
Council documentation of the process
used to select parcels acquired in fee or as
permanent conservation easements and must
provide the council with documentation
of all related transaction costs, including,
but not limited to, appraisals, legal fees,
recording fees, commissions, other similar
costs, and donations. This information
must be provided for all parties involved
in the transaction. The recipient must
also report to the Lessard-Sams Outdoor
Heritage Council any difference between the
acquisition amount paid to the seller and the
state-certified or state-reviewed appraisal, if
a state-certified or state-reviewed appraisal
was conducted. Acquisition data such
as appraisals may remain private during
negotiations but must ultimately be made
public according to Minnesota Statutes,
chapter 13.
(f) Except as otherwise provided in this
section, all restoration and enhancement
projects funded with money appropriated
under this section must be on land
permanently protected by a conservation
easement or public ownership or in public
waters as defined in Minnesota Statutes,
section 103G.005, subdivision 15.
(g) To the extent an appropriation is used to
acquire an interest in real property, a recipient
of an appropriation under this section must
provide to the Lessard-Sams Outdoor
Heritage Council and the commissioner
of management and budget an analysis of
increased operations and maintenance costs
likely to be incurred by public entities as
a result of the acquisition and of how these
costs are to be paid.
(h) A recipient of money from an
appropriation under this section must give
consideration to and make timely written
contact with Conservation Corps Minnesota
for possible use of the corps' services to
contract for restoration and enhancement
services. A copy of the written contact
must be filed with the Lessard-Sams
Outdoor Heritage Council within 15 days of
execution.
(i) A recipient of money under this section
must erect signage according to Laws 2009,
chapter 172, article 5, section 10.


Subd. 10.Payment Conditions and Capital
Equipment Expenditures
All agreements, grants, or contracts referred
to in this section must be administered on
a reimbursement basis unless otherwise
provided in this section. Notwithstanding
Minnesota Statutes, section 16A.41,
expenditures directly related to each
appropriation's purpose made on or after July
1, 2011, are eligible for reimbursement unless
otherwise provided in this section. Periodic
reimbursement must be made upon receiving
documentation that the deliverable items
articulated in the approved accomplishment
plan have been achieved, including partial
achievements as evidenced by approved
progress reports. Reasonable amounts may
be advanced to projects to accommodate
cash flow needs, support future management
of acquired lands, or match a federal share.
The advances must be approved as part of
the accomplishment plan. Capital equipment
expenditures for specific items in excess of
$10,000 must be itemized in and approved as
part of the accomplishment plan.


Subd. 11.Purchase of Recycled and Recyclable
Materials
A political subdivision, public or private
corporation, or other entity that receives an
appropriation under this section must use the
appropriation in compliance with Minnesota
Statutes, sections 16B.121, regarding
purchase of recycled, repairable, and durable
materials, and 16B.122, regarding purchase
and use of paper stock and printing.

Subd. 12.Accessibility
Structural and nonstructural facilities must
meet the design standards in the Americans
with Disabilities Act (ADA) accessibility
guidelines.

Subd. 13.Land Acquisition Restrictions
(a) An interest in real property, including, but
not limited to, an easement or fee title that
is acquired with money appropriated under
this section must be used in perpetuity or for
the specific term of an easement interest for
the purpose for which the appropriation was
made.
(b) A recipient of funding who acquires
an interest in real property subject to this
subdivision may not alter the intended use
of the interest in real property or convey
any interest in the real property acquired
with the appropriation without the prior
review and approval of the Lessard-Sams
Outdoor Heritage Council or its successor.
The council shall notify the chairs and
ranking minority members of the legislative
committees and divisions with jurisdiction
over the outdoor heritage fund at least 15
business days before approval under this
paragraph. The council shall establish
procedures to review requests from recipients
to alter the use of or convey an interest in
real property. These procedures shall allow
for the replacement of the interest in real
property with another interest in real property
meeting the following criteria: (1) the
interest must be at least equal in fair market
value, as certified by the commissioner
of natural resources, to the interest being
replaced; and (2) the interest must be in a
reasonably equivalent location and have a
reasonably equivalent useful conservation
purpose compared to the interest being
replaced, taking into consideration all effects
from fragmentation of the whole habitat.
(c) A recipient of funding who acquires an
interest in real property under paragraph
(a) must separately record a notice of
funding restrictions in the appropriate local
government office where the conveyance
of the interest in real property is filed. The
notice of funding agreement must contain:
(1) a legal description of the interest in real
property covered by the funding agreement;
(2) a reference to the underlying funding
agreement; (3) a reference to this section; and
(4) the following statement: "This interest
in real property shall be administered in
accordance with the terms, conditions, and
purposes of the grant agreement controlling
the acquisition of the property. The interest
in real property, or any portion of the interest
in real property, shall not be sold, transferred,
pledged, or otherwise disposed of or further
encumbered without obtaining the prior
written approval of the Lessard-Sams
Outdoor Heritage Council or its successor.
The ownership of the interest in real property
shall transfer to the state if: (1) the holder of
the interest in real property fails to comply
with the terms and conditions of the grant
agreement or accomplishment plan; or
(2) restrictions are placed on the land that
preclude its use for the intended purpose as
specified in the appropriation."

Subd. 14.Real Property Interest Report
By December 1 each year, a recipient of
money appropriated under this section that
is used for the acquisition of an interest in
real property, including, but not limited to,
an easement or fee title, must submit annual
reports on the status of the real property to
the Lessard-Sams Outdoor Heritage Council
or its successor in a form determined by the
council. The responsibility for reporting
under this section may be transferred by
the recipient of the appropriation to another
person or entity that holds the interest in the
real property. To complete the transfer of
reporting responsibility, the recipient of the
appropriation must: (1) inform the person
to whom the responsibility is transferred of
that person's reporting responsibility; (2)
inform the person to whom the responsibility
is transferred of the property restrictions
under subdivision 13; and (3) provide written
notice to the council of the transfer of
reporting responsibility, including contact
information for the person to whom the
responsibility is transferred. After the
transfer, the person or entity that holds the
interest in the real property is responsible for
reporting requirements under this section.


Subd. 15.Easement Monitoring and
Enforcement Requirements
Money appropriated under this section
for easement monitoring and enforcement
may be spent only on activities included in
an easement monitoring and enforcement
plan contained within the accomplishment
plan. Money received for monitoring
and enforcement, including earnings on
the money received, shall be kept in a
monitoring and enforcement fund held by
the organization and is appropriated for
monitoring and enforcing conservation
easements within Minnesota. Within 120
days after the close of the entity's fiscal
year, an entity receiving appropriations for
easement monitoring and enforcement must
provide an annual financial report to the
Lessard-Sams Outdoor Heritage Council on
the easement monitoring and enforcement
fund as specified in the accomplishment plan.
Money appropriated under this section for
monitoring and enforcement of easements
and earnings on the money appropriated
shall revert to the state if: (1) the easement
transfers to the state under subdivision 13;
(2) the holder of the easement fails to file
an annual report and then fails to cure that
default within 30 days of notification of the
default by the state; or (3) the holder of the
easement fails to comply with the terms
of the monitoring and enforcement plan
contained within the accomplishment plan
and fails to cure that default within 90 days
of notification of the default by the state.

Subd. 16.Successor Organizations
The Lessard-Sams Outdoor Heritage Council
may approve the continuation of a project
with an organization that has adopted
a new name. Continuation of a project
with an organization that has undergone
a significant change in mission, structure,
or purpose requires: (1) notice to the
chairs of the legislative committees with
relevant jurisdiction; and (2) presentation
by the council of proposed legislation either
ratifying or rejecting continued involvement
with the new organization.

Subd. 17.Appropriations Adjustment


(a) Mississippi River Bluffland Prairie
Protection Initiative.
Of the amount appropriated in Laws 2009,
chapter 172, article 1, section 2, subdivision
2, paragraph (f), up to $65,000 is for deposit
in a monitoring and enforcement account as
authorized in subdivision 15.


(b) Critical Shoreline Habitat Protection
Program
Of the amount appropriated in Laws 2010,
chapter 361, article 1, section 2, subdivision
3, paragraph (a), up to $187,000 is for deposit
in a monitoring and enforcement account as
authorized in subdivision 15.


(c) Riparian and Lakeshore Protection in
Dakota County
Of the amount appropriated in Laws 2010,
chapter 361, article 1, section 2, subdivision
5, paragraph (d), up to $80,000 is for deposit
in a monitoring and enforcement account as
authorized in subdivision 15.

(d) Valley Creek Protection Partnership
Of the amount appropriated in Laws 2010,
chapter 361, article 1, section 2, subdivision
5, paragraph (e), up to $12,000 is for deposit
in a monitoring and enforcement account as
authorized in subdivision 15.

    Sec. 3. [84.68] FORESTS FOR THE FUTURE CONSERVATION EASEMENT
ACCOUNT.
    Subdivision 1. Account established; sources. The forests for the future
conservation easement account is created in the natural resources fund in the state treasury.
The following revenue shall be deposited in the account:
(1) contributions to the account or specified for any purposes of the account;
(2) financial contributions required under section 84.66, subdivision 11, or other
applicable law; and
(3) money appropriated or transferred for the purposes described in subdivision 2.
Interest earned on money in the account accrues to the account.
    Subd. 2. Appropriation; purposes of account. Four percent of the balance on July
1 in the forests for the future conservation easement account is annually appropriated
to the commissioner of natural resources and may be spent only to cover the costs of
managing forests for the future conservation easements held by the Department of Natural
Resources, including costs incurred from monitoring, landowner contracts, record keeping,
processing landowner notices, requests for approval or amendments, and enforcement.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 4. Minnesota Statutes 2010, section 97A.056, is amended by adding a subdivision
to read:
    Subd. 1a. Definitions. For the purpose of appropriations from the outdoor heritage
fund, "recipient" means the entity responsible for deliverables financed by the outdoor
heritage fund.
EFFECTIVE DATE.This section is effective retroactively from July 1, 2009.

    Sec. 5. Minnesota Statutes 2010, section 97A.056, subdivision 2, is amended to read:
    Subd. 2. Lessard-Sams Outdoor Heritage Council. (a) The Lessard-Sams
Outdoor Heritage Council of 12 members is created in the legislative branch, consisting of:
    (1) two public members appointed by the senate Subcommittee on Committees of
the Committee on Rules and Administration;
    (2) two public members appointed by the speaker of the house;
    (3) four public members appointed by the governor;
    (4) two members of the senate appointed by the senate Subcommittee on Committees
of the Committee on Rules and Administration; and
    (5) two members of the house of representatives appointed by the speaker of the
house.
    (b) Members appointed under paragraph (a) must not be registered lobbyists.
In making appointments, the governor, senate Subcommittee on Committees of the
Committee on Rules and Administration, and the speaker of the house shall consider
geographic balance, gender, age, ethnicity, and varying interests including hunting and
fishing. The governor's appointments to the council are subject to the advice and consent
of the senate.
    (c) Public members appointed under paragraph (a) shall have practical experience
or expertise or demonstrated knowledge in the science, policy, or practice of restoring,
protecting, and enhancing wetlands, prairies, forests, and habitat for fish, game, and
wildlife.
    (d) Legislative members appointed under paragraph (a) shall include the chairs
of the legislative committees with jurisdiction over environment and natural resources
finance or their designee, one member from the minority party of the senate, and one
member from the minority party of the house of representatives.
    (e) Public members serve four-year terms and. Appointed legislative members serve
at the pleasure of the appointing authority. Public and legislative members continue to
serve until their successors are appointed. Public members shall be initially appointed
according to the following schedule of terms:
    (1) two public members appointed by the governor for a term ending the first
Monday in January 2011;
    (2) one public member appointed by the senate Subcommittee on Committees of the
Committee on Rules and Administration for a term ending the first Monday in January
2011;
    (3) one public member appointed by the speaker of the house for a term ending
the first Monday in January 2011;
    (4) two public members appointed by the governor for a term ending the first
Monday in January 2013;
    (5) one public member appointed by the senate Subcommittee on Committees of the
Committee on Rules and Administration for a term ending the first Monday in January
2013; and
    (6) one public member appointed by the speaker of the house for a term ending the
first Monday in January 2013; and.
    (7) two members of the senate appointed by the senate Subcommittee on Committees
of the Committee on Rules and Administration for a term ending the first Monday in
January 2013, and two members of the house of representatives appointed by the speaker
of the house for a term ending the first Monday in January 2013.
    (f) Compensation Terms, compensation, and removal of public members are as
provided in section 15.0575. A vacancy on the council may be filled by the appointing
authority for the remainder of the unexpired term.
    (g) The first meeting of the council shall be convened by the chair of the Legislative
Coordinating Commission no later than December 1, 2008. Members shall elect a chair,
vice-chair, secretary, and other officers as determined by the council. The chair may
convene meetings as necessary to conduct the duties prescribed by this section.
    (h) Upon coordination with and approval by the Legislative Coordinating
Commission, the council may appoint nonpartisan staff and contract with consultants
as necessary to carry out the functions of the council. Up to one percent of the money
appropriated from the fund may be used to pay for administrative expenses of the council
and for compensation and expense reimbursement of council members.

    Sec. 6. Minnesota Statutes 2010, section 97A.056, subdivision 3, is amended to read:
    Subd. 3. Council recommendations. (a) The council shall make recommendations
to the legislature on appropriations of money from the outdoor heritage fund that are
consistent with the Constitution and state law and that will achieve the outcomes of
existing natural resource plans, including, but not limited to, the Minnesota Statewide
Conservation and Preservation Plan, that directly relate to the restoration, protection, and
enhancement of wetlands, prairies, forests, and habitat for fish, game, and wildlife, and
that prevent forest fragmentation, encourage forest consolidation, and expand restored
native prairie. In making recommendations, the council shall consider a range of options
that would best restore, protect, and enhance wetlands, prairies, forests, and habitat
for fish, game, and wildlife, and shall not adopt definitions of "restore", "protect", or
"enhance" that would limit the council from considering options that are consistent with
the Constitution. The council shall submit its initial recommendations to the legislature no
later than April 1, 2009. Subsequent. The council's recommendations shall be submitted
no later than January 15 each year. The council shall present its recommendations to the
senate and house of representatives committees with jurisdiction over the environment
and natural resources budget by February 15 in odd-numbered years, and within the
first four weeks of the legislative session in even-numbered years. The council's budget
recommendations to the legislature shall be separate from the Department of Natural
Resource's budget recommendations.
    (b) To encourage and support local conservation efforts, the council shall establish a
conservation partners program. Local, regional, state, or national organizations may apply
for matching grants for restoration, protection, and enhancement of wetlands, prairies,
forests, and habitat for fish, game, and wildlife, prevention of forest fragmentation,
encouragement of forest consolidation, and expansion of restored native prairie.
    (c) The council may work with the Clean Water Council to identify projects that
are consistent with both the purpose of the outdoor heritage fund and the purpose of
the clean water fund.
    (d) The council may make recommendations to the Legislative-Citizen Commission
on Minnesota Resources on scientific research that will assist in restoring, protecting, and
enhancing wetlands, prairies, forests, and habitat for fish, game, and wildlife, preventing
forest fragmentation, encouraging forest consolidation, and expanding restored native
prairie.
    (e) Recommendations of the council, including approval of recommendations for the
outdoor heritage fund, require an affirmative vote of at least nine members of the council.
(f) The council may work with the Clean Water Council, the Legislative-Citizen
Commission on Minnesota Resources, the Board of Water and Soil Resources, soil and
water conservation districts, and experts from Minnesota State Colleges and Universities
and the University of Minnesota in developing the council's recommendations.
(g) The council shall develop and implement a process that ensures that citizens
and potential recipients of funds are included throughout the process, including the
development and finalization of the council's recommendations. The process must include
a fair, equitable, and thorough process for reviewing requests for funding and a clear and
easily understood process for ranking projects.
(h) The council shall use the regions of the state based upon the ecological regions
sections and subregions subsections developed by the Department of Natural Resources
and establish objectives for each region and subregion to achieve the purposes of the fund
outlined in the state constitution.
(i) The council shall develop and submit to the Legislative Coordinating Commission
plans for the first ten years of funding, and a framework for 25 years of funding, consistent
with statutory and constitutional requirements. The council may use existing plans from
other legislative, state, and federal sources, as applicable.

    Sec. 7. Minnesota Statutes 2010, section 97A.056, subdivision 6, is amended to read:
    Subd. 6. Audit. The legislative auditor shall audit the outdoor heritage fund
expenditures, including administrative and staffing expenditures, every two years to
ensure that the money is spent to restore, protect, and enhance wetlands, prairies, forests,
and habitat for fish, game, and wildlife in compliance with all applicable law and the
Constitution.

    Sec. 8. Minnesota Statutes 2010, section 97A.056, subdivision 9, is amended to read:
    Subd. 9. Lands in public domain. Money appropriated from the outdoor heritage
fund shall not be used to purchase any land in fee title or a permanent conservation
easement if the land in question is fully or partially owned by the state of Minnesota
or a political subdivision of the state, unless: (1) the purchase creates additional direct
benefit to protect, restore, or enhance the state's wetlands, prairies, forests, or habitat
for fish, game, and wildlife; and (2) the purchase is approved by an affirmative vote of
at least nine members of the council. At least 15 business days prior to a decision under
this subdivision, the council shall submit the planned decision item to the Legislative
Coordinating Commission. The planned decision item takes effect 15 business days
after it is submitted by the council.

    Sec. 9. Minnesota Statutes 2010, section 97A.056, subdivision 10, is amended to read:
    Subd. 10. Restoration evaluations. Beginning July 1, 2011, The commissioner
of natural resources and the Board of Water and Soil Resources shall may convene
a technical evaluation panel comprised of five members, including one technical
representative from the Board of Water and Soil Resources, one technical representative
from the Department of Natural Resources, one technical expert from the University of
Minnesota or the Minnesota State Colleges and Universities, and two representatives
with expertise in the project being evaluated. The board and the commissioner may add
a technical representative from a unit of federal or local government. The members of
the technical evaluation panel may not be associated with the restoration, may vary
depending upon the projects being reviewed, and shall avoid any potential conflicts of
interest. Each year, the board and the commissioner shall may assign a coordinator to
identify a sample of up to ten habitat restoration projects completed with outdoor heritage
funding. The coordinator shall secure the restoration plans for the projects specified and
direct the technical evaluation panel to evaluate the restorations relative to the law, current
science, and the stated goals and standards in the restoration plan and, when applicable, to
the Board of Water and Soil Resources' native vegetation establishment and enhancement
guidelines. The coordinator shall summarize the findings of the panel and provide a report
to the chair of the Lessard-Sams Outdoor Heritage Council and the chairs of the respective
house of representatives and senate policy and finance committees with jurisdiction over
natural resources and spending from the outdoor heritage fund. The report shall determine
if the restorations are meeting planned goals, any problems with the implementation of
restorations, and, if necessary, recommendations on improving restorations. The report
shall be focused on improving future restorations. Up to one-tenth of one percent of
forecasted receipts from the outdoor heritage fund may be used for restoration evaluations
under this section.

    Sec. 10. Laws 2009, chapter 172, article 1, section 2, subdivision 3, is amended to read:

Subd. 3.Forests
18,000,000
18,000,000
$18,000,000 in fiscal year 2010 and
$18,000,000 in fiscal year 2011 are to the
commissioner of natural resources to acquire
land or permanent working forest easements
on private forests in areas identified through
the Minnesota forests for the future program
under Minnesota Statutes, section 84.66.
Up to $750,000 in fiscal year 2011 may
be transferred to the forests for the future
conservation easement account and used
for the purposes specified under Minnesota
Statutes, section 84.68, subdivision 2.
Priority must be given to acquiring land
or interests in private lands within existing
Minnesota state forest boundaries. Any
easements acquired must have a forest
management plan as defined in Minnesota
Statutes, section 290C.02, subdivision 7.
A list of proposed fee title and easement
acquisitions must be provided as part of the
required accomplishment plan. The fiscal
year 2011 appropriation is available only for
acquisitions that, by August 15, 2009, are:
(1) subject to a binding agreement with the
commissioner; and
(2) matched by at least $9,000,000 in private
donations.
EFFECTIVE DATE.This section is effective retroactively from June 29, 2011.

    Sec. 11. Laws 2009, chapter 172, article 1, section 2, subdivision 15, is amended to
read:

Subd. 15.Real Property Interest Report
By December 1 each year, a recipient of
money appropriated under this section that
is used for the acquisition of an interest in
real property, including but not limited to
an easement or fee title, must submit annual
reports on the status of the real property to
the Lessard Outdoor Heritage Council or
its successor in a form determined by the
council. The responsibility for reporting
under this section may be transferred by
the recipient of the appropriation to another
person or entity that holds the interest in the
real property. To complete the transfer of
reporting responsibility, the recipient of the
appropriation must:
(1) inform the person to whom the
responsibility is transferred of that person's
reporting responsibility;
(2) inform the person to whom the
responsibility is transferred of the property
restrictions under subdivision 14; and
(3) provide written notice to the council
of the transfer of reporting responsibility,
including contact information for the person
to whom the responsibility is transferred.
Before the transfer, the entity receiving
the transfer of property must certify to the
Lessard Outdoor Heritage Council, or its
successor, acceptance of all obligations and
responsibilities held by the prior owner.
After the transfer, the person or entity that
holds the interest in the real property is
responsible for reporting requirements under
this section.

    Sec. 12. Laws 2010, chapter 361, article 1, section 2, subdivision 14, is amended to
read:

Subd. 14.Real Property Interest Report
By December 1 each year, a recipient of
money appropriated under this section that
is used for the acquisition of an interest in
real property, including, but not limited to,
an easement or fee title, must submit annual
reports on the status of the real property to
the Lessard-Sams Outdoor Heritage Council
or its successor in a form determined by the
council. The responsibility for reporting
under this section may be transferred by
the recipient of the appropriation to another
person or entity that holds the interest in the
real property. To complete the transfer of
reporting responsibility, the recipient of the
appropriation must: (1) inform the person
to whom the responsibility is transferred of
that person's reporting responsibility; (2)
inform the person to whom the responsibility
is transferred of the property restrictions
under subdivision 13; and (3) provide written
notice to the council of the transfer of
reporting responsibility, including contact
information for the person to whom the
responsibility is transferred; and (4) provide
the Lessard-Sams Outdoor Heritage Council
or its successor written documentation from
the person or entity holding the interest in
real property certifying its acceptance of all
reporting obligations and responsibilities
previously held by the recipient of the
appropriation. After the transfer, the person
or entity that holds the interest in the
real property is responsible for reporting
requirements under this section.

    Sec. 13. EFFECTIVE DATE; RELATIONSHIP TO OTHER
APPROPRIATIONS.
Unless otherwise specified, this article is effective retroactively from July 1, 2011,
and supersedes and replaces funding authorized by order of the Second Judicial District
Court in Case No. 62-CV-11-5203.

ARTICLE 2
CLEAN WATER FUND


Section 1. CLEAN WATER FUND 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
clean water fund and are available for the fiscal years indicated for allowable activities
under the Minnesota Constitution, article XI, section 15. The figures "2012" and "2013"
used in this article mean that the appropriation listed under them are available for the
fiscal year ending June 30, 2012, or June 30, 2013, respectively. "The first year" is fiscal
year 2012. "The second year" is fiscal year 2013. "The biennium" is fiscal years 2012
and 2013. The appropriations in this article are onetime.

APPROPRIATIONS

Available for the Year

Ending June 30

2012
2013


Sec. 2. CLEAN WATER

Subdivision 1.Total Appropriation
$
90,517,000
$
88,912,000
The amounts that may be spent for each
purpose are specified in the following
sections.

Subd. 2.Availability of Appropriation
Money appropriated in this article may
not be spent on activities unless they are
directly related to and necessary for a specific
appropriation. Money appropriated in this
article must not be spent on indirect costs
or other institutional overhead charges that
are not directly related to and necessary for
a specific appropriation. Notwithstanding
Minnesota Statutes, section 16A.28, and
unless otherwise specified in this article,
fiscal year 2012 appropriations are available
until June 30, 2013, and fiscal year 2013
appropriations are available until June 30,
2014. If a project receives federal funds, the
time period of the appropriation is extended
to equal the availability of federal funding.


Sec. 3. DEPARTMENT OF AGRICULTURE
$
7,700,000
$
7,700,000
(a) $350,000 the first year and $350,000 the
second year are to increase monitoring for
pesticides and pesticide degradates in surface
water and groundwater and to use data
collected to assess pesticide use practices.
(b) $850,000 the first year and $850,000
the second year are to increase monitoring
and evaluate trends in the concentration of
nitrates in groundwater in high-risk areas
and regionally and to promote and evaluate
regional and crop-specific nutrient best
management practices. This appropriation is
available until June 30, 2016.
(c) $4,500,000 the first year and $4,500,000
the second year are for the agriculture best
management practices loan program. At
least $3,500,000 the first year and at least
$3,900,000 the second year are for transfer to
the clean water agricultural best management
practices loan account and are available
for pass-through to local governments
and lenders for low-interest loans under
Minnesota Statutes, section 17.117. Any
unencumbered balance that is not used for
pass-through to local governments does not
cancel at the end of the first year and is
available for the second year.
(d) $775,000 the first year and $775,000
the second year are for research, pilot
projects, and technical assistance on proper
implementation of best management
practices and more precise information on
nonpoint contributions to impaired waters.
This appropriation is available until June 30,
2016.
(e) $1,050,000 the first year and $1,050,000
the second year are for research to quantify
agricultural contributions to impaired waters
and for development and evaluation of
best management practices to protect and
restore water resources while maintaining
productivity. This appropriation is available
until June 30, 2016.
(f) $175,000 the first year and $175,000 the
second year are for a research inventory
database containing water-related research
activities. This appropriation is available
until June 30, 2016.


Sec. 4. PUBLIC FACILITIES AUTHORITY
$
16,710,000
$
16,710,000
(a) $11,185,000 the first year and
$11,185,000 the second year are for the total
maximum daily load grant program under
Minnesota Statutes, section 446A.073. This
appropriation is available until June 30, 2016.
(b) $4,275,000 the first year and $4,275,000
the second year are for the clean water legacy
phosphorus reduction grant program under
Minnesota Statutes, section 446A.074. This
appropriation is available until June 30, 2016.
(c) $1,250,000 the first year and $1,250,000
the second year are for small community
wastewater treatment grants and loans under
Minnesota Statutes, section 446A.075. This
appropriation is available until June 30, 2016.
(d) If there are any uncommitted funds at the
end of each fiscal year under paragraph (a),
(b), or (c), the Public Facilities Authority
may transfer the remaining funds to eligible
projects under any of the programs listed
in this section based on their priority rank
on the Pollution Control Agency's project
priority list.


Sec. 5. POLLUTION CONTROL AGENCY
$
24,212,000
$
23,558,000
(a) $7,500,000 the first year and $7,500,000
the second year are for completion of 20
percent of the needed statewide assessments
of surface water quality and trends. Of
this amount, $100,000 the first year and
$100,000 the second year are for grants
to the Red River Watershed Management
Board to enhance and expand the existing
water quality and watershed monitoring river
watch activities in the schools in the Red
River of the North. The Red River Watershed
Management Board shall provide a report to
the commissioner of the Pollution Control
Agency and the legislative committees and
divisions with jurisdiction over environment
and natural resources finance and policy and
the clean water fund by February 15, 2013,
on the expenditure of these funds.
(b) $9,400,000 the first year and $9,400,000
the second year are to develop total maximum
daily load (TMDL) studies and TMDL
implementation plans for waters listed on
the United States Environmental Protection
Agency approved impaired waters list in
accordance with Minnesota Statutes, chapter
114D. The agency shall complete an average
of ten percent of the TMDL's each year over
the biennium.
(c) $1,125,000 the first year and $1,125,000
the second year are for groundwater
assessment, including enhancing the
ambient monitoring network, modeling,
and continuing to monitor for and assess
contaminants of emerging concern.
(d) $750,000 the first year and $750,000
the second year are for water quality
improvements in the lower St. Louis River
and Duluth harbor. This appropriation must
be matched at a rate of 65 percent nonstate
money to 35 percent state money.
(e) $1,000,000 the first year and $1,000,000
the second year are for the clean water
partnership program to provide grants
to protect and improve the basins and
watersheds of the state and provide financial
and technical assistance to study waters
with nonpoint source pollution problems.
Priority shall be given to projects preventing
impairments and degradation of lakes, rivers,
streams, and groundwater in accordance
with Minnesota Statutes, section 114D.20,
subdivision 2, clause (4). Any balance
remaining in the first year does not cancel
and is available for the second year.
(f) $400,000 the first year and $400,000 the
second year are for storm water research and
guidance.
(g) $1,150,000 the first year and $1,150,000
the second year are for TMDL research and
database development.
(h) $800,000 the first year and $800,000
the second year are for national pollutant
discharge elimination system wastewater and
storm water TMDL implementation efforts.
(i) $225,000 the first year and $225,000
the second year are transferred to the
commissioner of administration for the
Environmental Quality Board in cooperation
with the United States Geological Survey
to characterize groundwater flow and
aquifer properties in the I-94 corridor in
cooperation with local units of government.
This appropriation is available until June 30,
2016.
(j) $1,000,000 the first year and $500,000
the second year are for a wild rice standards
study.
(k) $862,000 the first year and $708,000
the second year are for groundwater
protection or prevention of groundwater
degradation activities through enhancing the
county-level delivery system for subsurface
sewage treatment systems (SSTS). The
commissioner shall consult with the SSTS
Compliance Task Force in developing a
distribution allocation for the county base
grants.
(l) Notwithstanding Minnesota Statutes,
section 16A.28, the appropriations
encumbered on or before June 30, 2013,
as grants or contracts in this section are
available until June 30, 2016.



Sec. 6. DEPARTMENT OF NATURAL
RESOURCES
$
10,860,000
$
9,860,000
(a) $1,825,000 the first year and $1,825,000
the second year are for the continuation and
expansion of stream flow monitoring.
(b) $1,150,000 the first year and $1,150,000
the second year are for lake Index of
Biological Integrity (IBI) assessments,
including assessment of 400 additional lakes
and technical analysis to develop an aquatic
plant IBI analysis. The commissioner shall
work with the commissioner of the Pollution
Control Agency on the development of an
assessment tool.
(c) $130,000 the first year and $130,000
the second year are for assessing mercury
contamination of fish, including monitoring
to track the status of waters impaired by
mercury and mercury reduction efforts over
time.
(d) $1,730,000 the first year and $1,730,000
the second year are for TMDL development
and TMDL implementation plans for waters
listed on the United States Environmental
Protection Agency approved impaired waters
list in accordance with Minnesota Statutes,
chapter 114D, and for development of a
watershed assessment tool.
(e) $1,500,000 the first year and $1,500,000
the second year are for water supply
planning, aquifer protection, and monitoring
activities.
(f) $450,000 the first year and $450,000 the
second year are for establishing a Web-based
electronic permitting system to capture water
appropriation use information.
(g) $1,725,000 the first year and $1,725,000
the second year are for shoreland
stewardship, TMDL implementation
coordination, providing technical assistance
to the Drainage Work Group and Drainage
Management Team, and maintaining and
updating data. Of this amount, $235,000
each year is for maintaining and updating
watershed boundaries and integrating
high-resolution digital elevation data with
watershed modeling and $40,000 each year
is for a biomonitoring database. TMDL
implementation coordination efforts shall be
focused on major watersheds with TMDL
implementation plans, including forested
watersheds.
(h) $1,350,000 the first year and $1,350,000
the second year are to acquire and distribute
high-resolution digital elevation data using
light detection and ranging to aid with
impaired waters modeling and TMDL
implementation under Minnesota Statutes,
chapter 114D. The money shall be used
to collect data for areas of the state that
have not acquired the data prior to January
1, 2007, or to complete acquisition and
distribution of the data for those areas of
the state that have not previously received
state funds for acquiring and distributing the
data. The distribution of data acquired under
this paragraph must be conducted under
the auspices of the Minnesota Geospatial
Information Office, which shall receive up
to 2.5 percent of the appropriation in this
paragraph to support coordination of data
acquisition and distribution. Mapping and
data set distribution under this paragraph
must be completed within three years of
funds availability. The commissioner shall
utilize department staff whenever possible.
The commissioner may contract for services
only if the services cannot otherwise be
provided by the department.
(i) $1,000,000 the first year is for
implementation of the metropolitan
groundwater monitoring and protection
activities under Minnesota Laws 2010,
chapter 361, article 2, section 4, subdivision
2.



Sec. 7. BOARD OF WATER AND SOIL
RESOURCES
$
27,534,000
$
27,534,000
(a) $13,750,000 the first year and
$13,750,000 the second year are for
pollution reduction and restoration grants
to local government units and joint powers
organizations of local government units to
protect surface water and drinking water; to
keep water on the land; to protect, enhance,
and restore water quality in lakes, rivers,
and streams; and to protect groundwater
and drinking water, including feedlot water
quality and subsurface sewage treatment
system (SSTS) projects and stream bank,
stream channel, and shoreline restoration
projects. The projects must be of long-lasting
public benefit, include a match, and be
consistent with TMDL implementation plans
or local water management plans.
(b) $3,000,000 the first year and $3,000,000
the second year are for targeted local
resource protection and enhancement grants.
The board shall give priority consideration
to projects and practices that complement,
supplement, or exceed current state standards
for protection, enhancement, and restoration
of water quality in lakes, rivers, and streams
or that protect groundwater from degradation.
Of this amount, at least $1,500,000 each year
is for county SSTS implementation.
(c) $900,000 the first year and $900,000 the
second year are to provide state oversight
and accountability, evaluate results, and
measure the value of conservation program
implementation by local governments,
including submission to the legislature
by March 1 each year an annual report
prepared by the board, in consultation with
the commissioners of natural resources,
health, agriculture, and the Pollution Control
Agency, detailing the recipients and projects
funded under this section. The board shall
require grantees to specify the outcomes that
will be achieved by the grants prior to any
grant awards.
(d) $1,000,000 the first year and $1,000,000
the second year are for technical assistance
and grants for the conservation drainage
program in consultation with the Drainage
Work Group, created under Minnesota
Statutes, section 103B.101, subdivision
13, that consists of projects to retrofit
existing drainage systems with water quality
improvement practices, evaluate outcomes,
and provide outreach to landowners, public
drainage authorities, drainage engineers and
contractors, and others.
(e) $6,000,000 the first year and $6,000,000
the second year are to purchase and restore
permanent conservation easements on
riparian buffers adjacent to public waters,
excluding wetlands, to keep water on the
land in order to decrease sediment, pollutant,
and nutrient transport; reduce hydrologic
impacts to surface waters; and increase
infiltration for groundwater recharge. The
riparian buffers must be at least 50 feet
unless there is a natural impediment, a road,
or other impediment beyond the control
of the landowner. This appropriation may
be used for restoration of riparian buffers
protected by easements purchased with
this appropriation and for stream bank
restorations when the riparian buffers have
been restored.
(f) $1,300,000 the first year and $1,300,000
the second year are for permanent
conservation easements on wellhead
protection areas under Minnesota Statutes,
section 103F.515, subdivision 2, paragraph
(d). Priority must be placed on land that
is located where the vulnerability of the
drinking water supply is designated as high
or very high by the commissioner of health.
(g) $1,500,000 the first year and $1,500,000
the second year are for community partners
grants to local units of government for:
(1) structural or vegetative management
practices that reduce storm water runoff
from developed or disturbed lands to reduce
the movement of sediment, nutrients, and
pollutants for restoration, protection, or
enhancement of water quality in lakes, rivers,
and streams and to protect groundwater
and drinking water; and (2) installation
of proven and effective water retention
practices including, but not limited to, rain
gardens and other vegetated infiltration
basins and sediment control basins in order
to keep water on the land. The projects
must be of long-lasting public benefit,
include a local match, and be consistent with
TMDL implementation plans or local water
management plans. Local government unit
staff and administration costs may be used
as a match.
(h) $84,000 the first year and $84,000 the
second year are for a technical evaluation
panel to conduct up to ten restoration
evaluations under Minnesota Statutes,
section 114D.50, subdivision 6.
(i) The board shall contract for services
with Conservation Corps Minnesota for
restoration, maintenance, and other activities
under this section for $500,000 the first year
and $500,000 the second year.
(j) The board may shift grant or cost-share
funds in this section and may adjust the
technical and administrative assistance
portion of the funds to leverage federal or
other nonstate funds or to address oversight
responsibilities or high-priority needs
identified in local water management plans.
(k) The appropriations in this section are
available until June 30, 2016.


Sec. 8. DEPARTMENT OF HEALTH
$
2,988,000
$
3,050,000
(a) $1,020,000 the first year and $1,020,000
the second year are for addressing public
health concerns related to contaminants
found in Minnesota drinking water for which
no health-based drinking water standard
exists.
(b) $1,415,000 the first year and $1,415,000
the second year are for protection of drinking
water sources.
(c) $250,000 the first year and $250,000 the
second year are for cost-share assistance to
public and private well owners for up to 50
percent of the cost of sealing unused wells.
(d) $303,000 the first year and $365,000 the
second year are to expand the county well
index.


Sec. 9. METROPOLITAN COUNCIL
$
500,000
$
500,000
$500,000 the first year and $500,000 the
second year are for implementation of the
master water supply plan developed under
Minnesota Statutes, section 473.1565.


Sec. 10. LEGISLATURE
$
13,000
$
-0-
$13,000 the first year is for the Legislative
Coordinating Commission for the costs of
developing and implementing a Web site to
contain information on projects receiving
appropriations from the clean water fund and
other constitutionally dedicated funds.


Sec. 11. CARRYFORWARD
(a) The appropriations in Laws 2009, chapter
172, article 2, section 4, paragraph (g), as
amended by Laws 2010, chapter 361, article
2, section 2, are available until June 30,
2013, and may be spent to continue research
and testing on the potential for coal tar
contamination of waters, on the study of
treatment and disposal options, and for grants
to local units of government.
(b) The appropriation in Laws 2010, chapter
361, article 2, section 4, subdivision 1, for
nitrogen and nitrate water quality standards
rulemaking is available until June 30, 2012.
(c) The appropriations in Laws 2009, chapter
172, article 2, section 4, paragraph (a),
as amended by Laws 2010, chapter 361,
article 2, section 2, for total maximum
daily load (TDML) study development and
implementation are available until June 30,
2014.
(d) The appropriations in Laws 2009, chapter
172, article 2, section 2, paragraph (d),
for research and pilot projects related to
ways agricultural practices contribute to
restoring impaired waters and assist with the
development of TMDL plans, are available
until June 30, 2016.
EFFECTIVE DATE.This section is effective retroactively from June 29, 2011.

    Sec. 12. Minnesota Statutes 2010, section 10A.01, subdivision 35, is amended to read:
    Subd. 35. Public official. "Public official" means any:
    (1) member of the legislature;
    (2) individual employed by the legislature as secretary of the senate, legislative
auditor, chief clerk of the house of representatives, revisor of statutes, or researcher,
legislative analyst, or attorney in the Office of Senate Counsel and Research or House
Research;
    (3) constitutional officer in the executive branch and the officer's chief administrative
deputy;
    (4) solicitor general or deputy, assistant, or special assistant attorney general;
    (5) commissioner, deputy commissioner, or assistant commissioner of any state
department or agency as listed in section 15.01 or 15.06, or the state chief information
officer;
    (6) member, chief administrative officer, or deputy chief administrative officer of a
state board or commission that has either the power to adopt, amend, or repeal rules under
chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;
    (7) individual employed in the executive branch who is authorized to adopt, amend,
or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
    (8) executive director of the State Board of Investment;
    (9) deputy of any official listed in clauses (7) and (8);
    (10) judge of the Workers' Compensation Court of Appeals;
    (11) administrative law judge or compensation judge in the State Office of
Administrative Hearings or unemployment law judge in the Department of Employment
and Economic Development;
    (12) member, regional administrator, division director, general counsel, or operations
manager of the Metropolitan Council;
    (13) member or chief administrator of a metropolitan agency;
    (14) director of the Division of Alcohol and Gambling Enforcement in the
Department of Public Safety;
    (15) member or executive director of the Higher Education Facilities Authority;
    (16) member of the board of directors or president of Enterprise Minnesota, Inc.;
    (17) member of the board of directors or executive director of the Minnesota State
High School League;
    (18) member of the Minnesota Ballpark Authority established in section 473.755;
    (19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
    (20) manager of a watershed district, or member of a watershed management
organization as defined under section 103B.205, subdivision 13;
    (21) supervisor of a soil and water conservation district;
(22) director of Explore Minnesota Tourism; or
    (23) citizen member of the Lessard-Sams Outdoor Heritage Council established in
section 97A.056; or
(24) a citizen member of the Clean Water Council established in section 114D.30.

    Sec. 13. Minnesota Statutes 2010, section 114D.10, is amended to read:
114D.10 LEGISLATIVE PURPOSE AND FINDINGS.
    Subdivision 1. Purpose. The purpose of the Clean Water Legacy Act is to protect,
enhance, and restore, and preserve the water quality of Minnesota's surface waters in
lakes, rivers, and streams and to protect groundwater from degradation, by providing
authority, direction, and resources to achieve and maintain water quality standards for
groundwater and surface waters as, including the standards required by section 303(d)
of the federal Clean Water Act, United States Code, title 33, section 1313(d), and other
applicable state and federal regulations.
    Subd. 2. Findings. The legislature finds that:
(1) there is a close link between protecting, enhancing, and restoring, and preserving
the quality of Minnesota's groundwater and surface waters and the ability to develop the
state's economy, enhance its quality of life, and protect its human and natural resources;
(2) achieving the state's water quality goals will require long-term commitment and
cooperation by all state and local agencies, and other public and private organizations
and individuals, with responsibility and authority for water management, planning, and
protection; and
(3) all persons and organizations whose activities affect the quality of waters,
including point and nonpoint sources of pollution, have a responsibility to participate in
and support efforts to achieve the state's water quality goals.

    Sec. 14. Minnesota Statutes 2010, section 114D.20, subdivision 1, is amended to read:
    Subdivision 1. Coordination and cooperation. In implementing this chapter,
public agencies and private entities shall take into consideration the relevant provisions of
local and other applicable water management, conservation, land use, land management,
and development plans and programs. Public agencies with authority for local water
management, conservation, land use, land management, and development plans shall
take into consideration the manner in which their plans affect the implementation of
this chapter. Public agencies shall identify opportunities to participate and assist in the
successful implementation of this chapter, including the funding or technical assistance
needs, if any, that may be necessary. In implementing this chapter, public agencies shall
endeavor to engage the cooperation of organizations and individuals whose activities
affect the quality of groundwater or surface waters, including point and nonpoint sources
of pollution, and who have authority and responsibility for water management, planning,
and protection. To the extent practicable, public agencies shall endeavor to enter into
formal and informal agreements and arrangements with federal agencies and departments
to jointly utilize staff and educational, technical, and financial resources to deliver
programs or conduct activities to achieve the intent of this chapter, including efforts
under the federal Clean Water Act and other federal farm and soil and water conservation
programs. Nothing in this chapter affects the application of silvicultural exemptions under
any federal, state, or local law or requires silvicultural practices more stringent than those
recommended in the timber harvesting and forest management guidelines adopted by the
Minnesota Forest Resources Council under section 89A.05.

    Sec. 15. Minnesota Statutes 2010, section 114D.20, subdivision 2, is amended to read:
    Subd. 2. Goals for implementation. The following goals must guide the
implementation of this chapter:
(1) to identify impaired waters in accordance with federal TMDL requirements
within ten years after the effective date of this section and thereafter to ensure continuing
evaluation of surface waters for impairments;
(2) to submit TMDL's to the United States Environmental Protection Agency for all
impaired waters in a timely manner in accordance with federal TMDL requirements;
(3) to set a reasonable time for implementing restoration of each identified impaired
water;
(4) to provide assistance and incentives to prevent waters from becoming impaired
and to improve the quality of waters that are listed as impaired but do not have an
approved TMDL addressing the impairment;
(5) to promptly seek the delisting of waters from the impaired waters list when those
waters are shown to achieve the designated uses applicable to the waters; and
(6) to achieve compliance with federal Clean Water Act requirements in Minnesota.;
(7) to support effective measures to prevent the degradation of groundwater
according to the groundwater degradation prevention goal under section 103H.001; and
(8) to support effective measures to restore degraded groundwater.

    Sec. 16. Minnesota Statutes 2010, section 114D.20, subdivision 3, is amended to read:
    Subd. 3. Implementation policies. The following policies must guide the
implementation of this chapter:
(1) develop regional and watershed TMDL's and TMDL implementation plans, and
TMDL's and TMDL implementation plans for multiple pollutants, where reasonable and
feasible;
(2) maximize use of available organizational, technical, and financial resources to
perform sampling, monitoring, and other activities to identify degraded groundwater and
impaired waters, including use of citizen monitoring and citizen monitoring data used
by the Pollution Control Agency in assessing water quality must meet that meets the
requirements in Appendix D of the Volunteer Surface Water Monitoring Guide, Minnesota
Pollution Control Agency (2003);
(3) maximize opportunities for restoration of degraded groundwater and impaired
waters, by prioritizing and targeting of available programmatic, financial, and technical
resources and by providing additional state resources to complement and leverage
available resources;
(4) use existing regulatory authorities to achieve restoration for point and nonpoint
sources of pollution where applicable, and promote the development and use of effective
nonregulatory measures to address pollution sources for which regulations are not
applicable;
(5) use restoration methods that have a demonstrated effectiveness in reducing
impairments and provide the greatest long-term positive impact on water quality protection
and improvement and related conservation benefits while incorporating innovative
approaches on a case-by-case basis;
(6) identify for the legislature any innovative approaches that may strengthen or
complement existing programs;
(7) identify and encourage implementation of measures to prevent surface waters
from becoming impaired and to improve the quality of waters that are listed as impaired
but have no approved TMDL addressing the impairment using the best available data and
technology, and establish and report outcome-based performance measures that monitor
the progress and effectiveness of protection and restoration measures; and
(8) monitor and enforce cost-sharing contracts and impose monetary damages in an
amount up to 150 percent of the financial assistance received for failure to comply.; and
(9) identify and encourage implementation of measures to prevent groundwater from
becoming degraded and measures that restore groundwater resources.

    Sec. 17. Minnesota Statutes 2010, section 114D.20, subdivision 6, is amended to read:
    Subd. 6. Priorities for restoration of impaired waters. In implementing
restoration of impaired waters, in addition to the priority considerations in subdivision 5,
the Clean Water Council shall give priority in its recommendations for restoration funding
from the clean water legacy account fund to restoration projects that:
(1) coordinate with and utilize existing local authorities and infrastructure for
implementation;
(2) can be implemented in whole or in part by providing support for existing or
ongoing restoration efforts;
(3) most effectively leverage other sources of restoration funding, including federal,
state, local, and private sources of funds;
(4) show a high potential for early restoration and delisting based upon scientific
data developed through public agency or citizen monitoring or other means; and
(5) show a high potential for long-term water quality and related conservation
benefits.

    Sec. 18. Minnesota Statutes 2010, section 114D.20, subdivision 7, is amended to read:
    Subd. 7. Priorities for funding prevention actions. The Clean Water Council
shall apply the priorities applicable under subdivision 6, as far as practicable, when
recommending priorities for funding actions to prevent groundwater and surface waters
from becoming degraded or impaired and to improve the quality of surface waters that are
listed as impaired but do not have an approved TMDL.

    Sec. 19. Minnesota Statutes 2010, section 114D.30, is amended to read:
114D.30 CLEAN WATER COUNCIL.
    Subdivision 1. Creation; duties. A Clean Water Council is created to advise on the
administration and implementation of this chapter, and foster coordination and cooperation
as described in section 114D.20, subdivision 1. The council may also advise on the
development of appropriate processes for expert scientific review as described in section
114D.35, subdivision 2. The Pollution Control Agency shall provide administrative
support for the council with the support of other member agencies. The members of the
council shall elect a chair from the nonagency voting members of the council.
    Subd. 2. Membership; appointment. (a) The commissioners of natural resources,
agriculture, health, and the Pollution Control Agency, and the executive director of the
Board of Water and Soil Resources shall each appoint one person from their respective
agency to serve as a nonvoting member of the council. Agency members serve as
nonvoting members of the council. Two members of the house of representatives,
including one member from the majority party and one member from the minority party,
appointed by the speaker and two senators, including one member from the majority
party and one member from the minority party, appointed according to the rules of the
senate shall serve at the pleasure of the appointing authority as nonvoting members of
the council. Agency and legislative members appointed under this paragraph serve as
nonvoting members of the council.
(b) Nineteen additional nonagency voting members of the council shall be appointed
by the governor as follows:
(1) two members representing statewide farm organizations;
(2) two members representing business organizations;
(3) two members representing environmental organizations;
(4) one member representing soil and water conservation districts;
(5) one member representing watershed districts;
(6) one member representing nonprofit organizations focused on improvement of
Minnesota lakes or streams;
(7) two members representing organizations of county governments, one member
representing the interests of rural counties and one member representing the interests of
counties in the seven-county metropolitan area;
(8) two members representing organizations of city governments;
(9) one member representing the Metropolitan Council established under section
473.123;
(10) one member representing township officer officers;
(11) one member representing the interests of tribal governments;
(12) one member representing statewide hunting organizations;
(13) one member representing the University of Minnesota or a Minnesota state
university; and
(14) one member representing statewide fishing organizations.
Members appointed under clauses (1) to (14) this paragraph must not be registered
lobbyists or legislators. In making appointments, the governor must attempt to provide for
geographic balance. The members of the council appointed by the governor are subject
to the advice and consent of the senate.
    Subd. 3. Conflict of interest. A Clean Water Council member may not participate
in or vote on a decision of the council relating to an organization in which the member has
either a direct or indirect personal financial interest. While serving on the Clean Water
Council, a member shall avoid any potential conflict of interest.
    Subd. 4. Terms; compensation; removal. The initial terms of members
representing state agencies and the Metropolitan Council expire on the first Monday in
January 2007. Thereafter, The terms of members representing the state agencies and the
Metropolitan Council are four years and are coterminous with the governor. The terms
of other nonlegislative members of the council shall be as provided in section 15.059,
subdivision 2. Members may serve until their successors are appointed and qualify.
Compensation and removal of nonlegislative council members is as provided in section
15.059, subdivisions 3 and 4. Compensation of legislative members is as determined
by the appointing authority. A vacancy on the council may be filled by the appointing
authority provided in subdivision 1 for the remainder of the unexpired term.
    Subd. 5. Implementation plan. The Clean Water Council shall recommend a plan
for implementation of this chapter and the provisions of article XI, section 15, of the
Minnesota Constitution relating to clean water. The recommended plan shall address
general procedures and time frames for implementing this chapter, and shall include a more
specific implementation work plan for the next fiscal biennium and a framework for setting
priorities to address impaired waters consistent with section 114D.20, subdivisions 2 to 7.
The council shall issue the first recommended plan under this subdivision by December 1,
2005, and shall issue a revised plan by December 1 of each even-numbered year thereafter.
    Subd. 6. Recommendations on appropriation of funds. (a) The Clean Water
Council shall recommend to the governor and the legislature the manner in which
money from the clean water legacy account fund should be appropriated for the purposes
identified in section 114D.45, subdivision 3 stated in article XI, section 15, of the
Minnesota Constitution and section 114D.50.
(b) The council's recommendations must:
(1) be to protect, enhance, and restore water quality in lakes, rivers, and streams and
to protect groundwater from degradation and ensure that at least five percent of the clean
water fund is spent only to protect drinking water sources;
(2) be consistent with the purposes, policies, goals, and priorities in sections
114D.05 to 114D.35, this chapter; and shall
(3) allocate adequate support and resources to identify degraded groundwater and
impaired waters, develop TMDL's, implement restoration of groundwater and impaired
waters, and provide assistance and incentives to prevent groundwater and surface waters
from becoming degraded or impaired and improve the quality of surface waters which are
listed as impaired but have no approved TMDL.
(c) The council must recommend methods of ensuring that awards of grants,
loans, or other funds from the clean water legacy account fund specify the outcomes
to be achieved as a result of the funding and specify standards to hold the recipient
accountable for achieving the desired outcomes. Expenditures from the account fund must
be appropriated by law.
    Subd. 7. Biennial report to legislature. By December 1 of each even-numbered
year, the council shall submit a report to the legislature on the activities for which money
has been or will be spent for the current biennium, the activities for which money is
recommended to be spent in the next biennium, and the impact on economic development
of the implementation of efforts to protect and restore groundwater and the impaired waters
program. The report due on December 1, 2014, must include an evaluation of the progress
made through June 30, 2014, in implementing this chapter and the provisions of article XI,
section 15, of the Minnesota Constitution relating to clean water, the need for funding of
future implementation of those sections, and recommendations for the sources of funding.

    Sec. 20. Minnesota Statutes 2010, section 114D.35, is amended to read:
114D.35 PUBLIC AND STAKEHOLDER PARTICIPATION; SCIENTIFIC
REVIEW; EDUCATION.
    Subdivision 1. Public and stakeholder participation. Public agencies and private
entities involved in the implementation of this chapter shall encourage participation by
the public and stakeholders, including local citizens, landowners and managers, and
public and private organizations, in the identification of identifying impaired waters, in
developing TMDL's, and in planning, priority setting, and implementing restoration of
impaired waters, in identifying degraded groundwater, and in protecting and restoring
groundwater resources. In particular, the Pollution Control Agency shall make reasonable
efforts to provide timely information to the public and to stakeholders about impaired
waters that have been identified by the agency. The agency shall seek broad and early
public and stakeholder participation in scoping the activities necessary to develop a
TMDL, including the scientific models, methods, and approaches to be used in TMDL
development, and to implement restoration pursuant to section 114D.15, subdivision 7.
    Subd. 2. Expert scientific advice. The Clean Water Council and public agencies
and private entities shall make use of available public and private expertise from
educational, research, and technical organizations, including the University of Minnesota
and other higher education institutions, to provide appropriate independent expert advice
on models, methods, and approaches used in identifying degraded ground water and
impaired waters, developing TMDL's, and implementing prevention and restoration.
    Subd. 3. Education. The Clean Water Council shall develop strategies for
informing, educating, and encouraging the participation of citizens, stakeholders,
and others regarding the identification of impaired waters, development of TMDL's,
development of TMDL implementation plans, and implementation of restoration for
impaired waters, identification of degraded groundwater, and protection and restoration
of groundwater resources. Public agencies shall be responsible for implementing the
strategies.

    Sec. 21. Minnesota Statutes 2010, section 114D.50, subdivision 6, is amended to read:
    Subd. 6. Restoration evaluations. Beginning July 1, 2011, The Board of Water
and Soil Resources shall may convene a technical evaluation panel comprised of five
members, including one technical representative from the Board of Water and Soil
Resources, one technical representative from the Department of Natural Resources,
one technical expert from the University of Minnesota or the Minnesota State Colleges
and Universities, and two representatives with expertise related to the project being
evaluated. The board may add a technical representative from a unit of federal or local
government. The members of the technical evaluation panel may not be associated with
the restoration, may vary depending upon the projects being reviewed, and shall avoid
any potential conflicts of interest. Each year, the board shall may assign a coordinator
to identify a sample of up to ten habitat restoration projects completed with clean water
funding. The coordinator shall secure the restoration plans for the projects specified
and direct the technical evaluation panel to evaluate the restorations relative to the law,
current science, and the stated goals and standards in the restoration plan and, when
applicable, to the Board of Water and Soil Resources' native vegetation establishment and
enhancement guidelines. The coordinator shall summarize the findings of the panel and
provide a report to the chairs of the respective house of representatives and senate policy
and finance committees with jurisdiction over natural resources and spending from the
clean water fund. The report shall determine if the restorations are meeting planned goals,
any problems with the implementation of restorations, and, if necessary, recommendations
on improving restorations. The report shall be focused on improving future restorations.
Up to one-tenth of one percent of forecasted receipts from the clean water fund may be
used for restoration evaluations under this section.

    Sec. 22. Minnesota Statutes 2010, section 116.195, is amended to read:
116.195 BENEFICIAL USE OF WASTEWATER AND STORM WATER;
CAPITAL GRANTS FOR DEMONSTRATION PROJECTS.
    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
have the meanings given them.
    (b) "Agency" means the Pollution Control Agency.
    (c) "Beneficial use of wastewater or storm water" means:
(1) use of the effluent from a wastewater treatment plant that replaces use of
groundwater; or
(2) use of storm water that replaces the use of groundwater.
    (d) "Capital project" means the acquisition or betterment of public land, buildings,
and other public improvements of a capital nature for the treatment of wastewater intended
for beneficial use or for the use of storm water to replace groundwater use. Capital project
includes projects to retrofit, expand, or construct new treatment facilities.
    Subd. 2. Grants for capital project design. The agency shall make grant awards
to political subdivisions for up to 50 percent of the costs to predesign and design capital
projects that demonstrate the beneficial use of wastewater or storm water. The maximum
amount for a grant under this subdivision is $500,000. The grant agreement must provide
that the predesign and design work being funded is public information and available to
anyone without charge. The agency must make the predesign and design work available
on its Web site.
    Subd. 3. Grants for capital project implementation. The agency shall make grant
awards to political subdivisions for up to 50 percent of the costs to acquire, construct,
install, furnish, and equip capital projects that demonstrate the beneficial use of wastewater
or storm water. The political subdivision must submit design plans and specifications
to the agency as part of the application.
    The agency must consult with the Public Facilities Authority and the commissioner
of natural resources in reviewing and ranking applications for grants under this section.
    The application must identify the uses of the treated wastewater or storm water
and greater weight will be given to applications that include a binding commitment to
participate by the user or users.
    The agency must give preference to projects that will reduce use of the greatest
volume of groundwater from aquifers with the slowest rate of recharge.
    Subd. 4. Application form; procedures. The agency shall develop an application
form and procedures.
    Subd. 5. Reports. The agency shall report by February 1 of each year to the chairs
of the house of representatives and senate committees with jurisdiction over environment
policy and finance and capital investment on the grants made and projects funded under
this section. For each demonstration project funded, the report must include information
on the scale of water constraints for the area, the volume of treated wastewater supply
supplied or storm water available, the quality of the storm water or treated wastewater
supplied and treatment implications for the industrial user, impacts to stream flow and
downstream users, and any considerations related to water appropriation and discharge
permits.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 23. Laws 2009, chapter 172, article 2, section 4, as amended by Laws 2010,
chapter 361, article 2, section 2, is amended to read:

Sec. 4. POLLUTION CONTROL AGENCY
$
24,076,000
$
27,630,000
(a) $9,000,000 the first year and $9,000,000
the second year are to develop total
maximum daily load (TMDL) studies and
TMDL implementation plans for waters
listed on the United States Environmental
Protection Agency approved impaired
waters list in accordance with Minnesota
Statutes, chapter 114D. The agency shall
complete an average of ten percent of the
TMDLs each year over the biennium. Of
this amount, $348,000 the first year is to
retest the comprehensive assessment of the
biological conditions of the lower Minnesota
River and its tributaries within the Lower
Minnesota River Major Watershed, as
previously assessed from 1976 to 1992 under
the Minnesota River Assessment Project
(MRAP). The assessment must include the
same fish species sampling at the same 116
locations and the same macroinvertebrate
sampling at the same 41 locations as the
MRAP assessment. The assessment must:
(1) include an analysis of the findings; and
(2) identify factors that limit aquatic life in
the Minnesota River.
Of this amount, $250,000 the first year is
for a pilot project for the development of
total maximum daily load (TMDL) studies
conducted on a watershed basis within
the Buffalo River watershed in order to
protect, enhance, and restore water quality
in lakes, rivers, and streams. The pilot
project shall include all necessary field
work to develop TMDL studies for all
impaired subwatersheds within the Buffalo
River watershed and provide information
necessary to complete reports for most of the
remaining watersheds, including analysis of
water quality data, identification of sources
of water quality degradation and stressors,
load allocation development, development
of reports that provide protection plans
for subwatersheds that meet water quality
standards, and development of reports that
provide information necessary to complete
TMDL studies for subwatersheds that do not
meet water quality standards, but are not
listed as impaired.
(b) $500,000 the first year is for development
of an enhanced TMDL database to manage
and track progress. Of this amount, $63,000
the first year is to promulgate rules. By
November 1, 2010, the commissioner shall
submit a report to the chairs of the house of
representatives and senate committees with
jurisdiction over environment and natural
resources finance on the outcomes achieved
with this appropriation.
(c) $1,500,000 the first year and $3,169,000
the second year are for grants under
Minnesota Statutes, section 116.195, to
political subdivisions for up to 50 percent of
the costs to predesign, design, and implement
capital projects that use storm water or
treated municipal wastewater instead of
groundwater from drinking water aquifers,
in order to demonstrate the beneficial use
of wastewater or storm water, including
the conservation and protection of water
resources. Of this amount, $1,000,000 the
first year is for grants to ethanol plants that
are within one and one-half miles of a city for
improvements that use storm water or reuse
greater than 300,000 gallons of wastewater
per day. This appropriation is available until
June 30, 2016.
(d) $1,125,000 the first year and $1,125,000
the second year are for groundwater
assessment and drinking water protection to
include:
(1) the installation and sampling of at least
30 new monitoring wells;
(2) the analysis of samples from at least 40
shallow monitoring wells each year for the
presence of endocrine disrupting compounds;
and
(3) the completion of at least four to
five groundwater models for TMDL and
watershed plans.
(e) $2,500,000 the first year is for the clean
water partnership program. Priority shall be
given to projects preventing impairments and
degradation of lakes, rivers, streams, and
groundwater in accordance with Minnesota
Statutes, section 114D.20, subdivision 2,
clause (4). Any balance remaining in the first
year does not cancel and is available for the
second year.
(f) $896,000 the first year is to establish
a network of water monitoring sites, to
include at least 20 additional sites, in public
waters adjacent to wastewater treatment
facilities across the state to assess levels of
endocrine-disrupting compounds, antibiotic
compounds, and pharmaceuticals as required
in this article. The data must be placed on
the agency's Web site.
(g) $155,000 the first year is to provide
notification of the potential for coal tar
contamination, establish a storm water
pond inventory schedule, and develop best
management practices for treating and
cleaning up contaminated sediments as
required in this article. $490,000 the second
year is to provide grants to local units of
government for up to 50 percent of the costs
to implement best management practices to
treat or clean up contaminated sediments
in storm water ponds and other waters as
defined under this article. Local governments
must have adopted an ordinance for the
restricted use of undiluted coal tar sealants
in order to be eligible for a grant, unless a
statewide restriction has been implemented.
A grant awarded under this paragraph must
not exceed $100,000. Up to $145,000 of the
appropriation in the second year may be used
to complete work required under section 28,
paragraph (c).
(h) $350,000 the first year and $600,000 the
second year are for a restoration project in
the lower St. Louis River and Duluth harbor
in order to improve water quality. This
appropriation must be matched by nonstate
money at a rate of at least $2 for every $1 of
state money.
(i) $150,000 the first year and $196,000 the
second year are for grants to the Red River
Watershed Management Board to enhance
and expand existing river watch activities in
the Red River of the North. The Red River
Watershed Management Board shall provide
a report that includes formal evaluation
results from the river watch program to the
commissioners of education and the Pollution
Control Agency and to the legislative natural
resources finance and policy committees
and K-12 finance and policy committees by
February 15, 2011.
(j) $200,000 the first year and $300,000 the
second year are for coordination with the
state of Wisconsin and the National Park
Service on comprehensive water monitoring
and phosphorus reduction activities in the
Lake St. Croix portion of the St. Croix
River. The Pollution Control Agency
shall work with the St. Croix Basin Water
Resources Planning Team and the St. Croix
River Association in implementing the
water monitoring and phosphorus reduction
activities. This appropriation is available
to the extent matched by nonstate sources.
Money not matched by November 15, 2010,
cancels for this purpose and is available for
the purposes of paragraph (a).
(k) $7,500,000 the first year and $7,500,000
the second year are for completion of 20
percent of the needed statewide assessments
of surface water quality and trends. Of this
amount, $175,000 the first year and $200,000
the second year are for monitoring and
analyzing endocrine disruptors in surface
waters.
(l) $100,000 the first year and $150,000
the second year are for civic engagement
in TMDL development. The agency shall
develop a plan for expenditures under
this paragraph. The agency shall give
consideration to civic engagement proposals
from basin or sub-basin organizations,
including the Mississippi Headwaters Board,
the Minnesota River Joint Powers Board,
Area II Minnesota River Basin Projects,
and the Red River Basin Commission.
By November 15, 2009, the plan shall be
submitted to the house and senate chairs
and ranking minority members of the
environmental finance divisions.
(m) $5,000,000 the second year is for
groundwater protection or prevention of
groundwater degradation activities. By
January 15, 2010, the commissioner, in
consultation with the commissioner of
natural resources, the Board of Water and
Soil Resources, and other agencies, shall
submit a report to the chairs of the house of
representatives and senate committees with
jurisdiction over the clean water fund on the
intended use of these funds. The legislature
must approve expenditure of these funds by
law.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered on or
before June 30, 2011, as grants or contracts in
this section are available until June 30, 2013.
EFFECTIVE DATE.This section is effective retroactively from June 29, 2011.

    Sec. 24. Laws 2010, chapter 361, article 2, section 3, is amended to read:
    Sec. 3. CLEAN WATER FUND; 2009 APPROPRIATION ADJUSTMENTS.
The appropriations in fiscal years 2011 2010 and 2012 2011 to the Department of
Natural Resources for high-resolution digital elevation data in Laws 2009, chapter 172,
article 2, section 5, paragraph (d), are available until June 30, 2012.
EFFECTIVE DATE.This section is effective retroactively from June 29, 2011.

    Sec. 25. CIVIC ENGAGEMENT AND PUBLIC EDUCATION.
A recipient of funds appropriated in this article shall incorporate civic engagement
and public education when implementing projects and programs funded under this article.

    Sec. 26. REPEALER.
Minnesota Statutes 2010, section 114D.45, is repealed.

    Sec. 27. EFFECTIVE DATE; RELATIONSHIP TO OTHER
APPROPRIATIONS.
Unless otherwise specified, this article is effective retroactively from July 1, 2011,
and supersedes and replaces funding authorized by order of the Second Judicial District
Court in Case No. 62-CV-11-5203.

ARTICLE 3
PARKS AND TRAILS FUND


Section 1. PARKS AND TRAILS FUND 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 parks and trails fund, or another named fund, and are available for the fiscal years
indicated for each purpose. "The first year" is fiscal year 2012. "The second year" is
fiscal year 2013. "The biennium" is fiscal years 2012 and 2013. Appropriations for the
fiscal year ending June 30, 2012, are effective the day following final enactment. All
appropriations in this article are onetime.

APPROPRIATIONS

Available for the Year

Ending June 30

2012
2013


Sec. 2. PARKS AND TRAILS

Subdivision 1.Total Appropriation
$
39,676,000
$
38,468,000
The amounts that may be spent for each
purpose are specified in the following
sections.

Subd. 2.Availability of Appropriation
Money appropriated in this article may
not be spent on activities unless they are
directly related to and necessary for a specific
appropriation. Money appropriated in this
article must not be spent on indirect costs
or other institutional overhead charges that
are not directly related to and necessary for
a specific appropriation. Notwithstanding
Minnesota Statutes, section 16A.28, and
unless otherwise specified in this article,
fiscal year 2012 appropriations are available
until June 30, 2014, and fiscal year 2013
appropriations are available until June 30,
2015. If a project receives federal funds, the
time period of the appropriation is extended
to equal the availability of federal funding.



Sec. 3. DEPARTMENT OF NATURAL
RESOURCES
$
23,906,000
$
22,327,000
(a) $14,262,000 the first year and
$14,603,000 the second year are for state
parks, recreation areas, and trails to:
(1) connect people to the outdoors;
(2) acquire land and create opportunities;
(3) maintain existing holdings; and
(4) improve cooperation by coordinating
with partners to implement the 25-year
long-range parks and trails legacy plan.
(b) $2,100,000 the first year is for acquisition
of land adjacent to LaSalle Lake in Hubbard
County for a state recreation area. If the
acquisition is not completed by July 15,
2012, or if a balance remains after the
acquisition of the land, the money under this
paragraph is available for acquisitions under
paragraph (a), clause (2).
(c) $7,506,000 the first year and $7,686,000
the second year are for parks and trails of
regional or statewide significance as follows:
(1) $7,331,000 the first year and $7,686,000
the second year are for grants under
Minnesota Statutes, section 85.535, to
acquire, develop, improve, and restore
parks and trails of regional or statewide
significance outside of the metropolitan area,
as defined in Minnesota Statutes, section
473.121, subdivision 2; and
(2) $175,000 the first year is for a grant to
the Greater Minnesota Regional Park and
Trail Coalition to: (1) establish protocols
to determine the origin of visitors, and
projection of potential use of greater
Minnesota regional parks and trails; (2)
collect and compile details on the facilities
within the greater Minnesota regional park
system; and (3) develop evaluation protocol
and criteria to determine priorities for park
and trail acquisition and development. No
local match is required for this grant.
Notwithstanding Minnesota Statutes, section
85.535, subdivision 3, the local match
requirement is ten percent for money
appropriated in fiscal year 2012 for grants
under this section. The commissioner of
natural resources may reduce the nonstate
cash match requirement for grants awarded
to groups of three or more entities if the
commissioner determines that the nonstate
cash match requirement is a financial
burden to one or more of the entities. The
overall reduction in the nonstate cash match
requirement may not exceed 25 percent of
the original nonstate cash match requirement.
Up to 2.5 percent of the total appropriation
may be used for administering the grants.
Any unencumbered balance at the end of a
fiscal year is available for the purposes in
paragraph (a).
(d) $38,000 the first year and $38,000 the
second year are for a technical evaluation
panel to conduct up to ten restoration
evaluations under Minnesota Statutes,
section 85.53, subdivision 5.
(e) The commissioner shall contract for
services with Conservation Corps Minnesota
for restoration, maintenance, and other
activities under this section for at least
$500,000 the first year and $500,000 the
second year.
(f) The commissioner of natural resources
shall convene and facilitate a working group
of nine members to develop consensus
recommendations for the allocation of the
parks and trails fund. The working group
shall have representatives from metropolitan
parks and trails, greater Minnesota parks
and trails, and the Department of Natural
Resources Parks and Trails Division.
The consensus recommendations shall
be submitted no later than November 15,
2012, and presented to the governor for
consideration in the budget for fiscal years
2014 and 2015.


Sec. 4. METROPOLITAN COUNCIL
$
15,763,000
$
16,141,000
(a) $15,763,000 the first year and $16,141,000
the second year are to be distributed under
Minnesota Statutes, section 85.53,
subdivision 3. The Metropolitan Council
may use a portion of this appropriation to
provide grants for metropolitan parks and
trails of regional or statewide significance
within the metropolitan area that are not
eligible under Minnesota Statutes, section
85.53, subdivision 3.
(b) The Metropolitan Council shall submit
a report on the expenditure and use of
money appropriated under this section to
the legislature as provided in Minnesota
Statutes, section 3.195, by March 1 of each
year. The report must detail the outcomes in
terms of additional use of parks and trails
resources, user satisfaction surveys, and
other appropriate outcomes.


Sec. 5. LEGISLATURE
$
7,000
$
-0-
$7,000 the first year is for the Legislative
Coordinating Commission for the costs of
developing and implementing a Web site to
contain information on projects receiving
appropriations from the parks and trails fund
and other constitutionally dedicated funds.

    Sec. 6. Minnesota Statutes 2010, section 85.013, is amended by adding a subdivision
to read:
    Subd. 15a. LaSalle Lake State Recreation Area, Hubbard County.

    Sec. 7. Minnesota Statutes 2010, section 85.53, subdivision 5, is amended to read:
    Subd. 5. Restoration evaluations. Beginning July 1, 2011, The commissioner
of natural resources shall may convene a technical evaluation panel comprised of five
members, including one technical representative from the Board of Water and Soil
Resources, one technical representative from the Department of Natural Resources, one
technical expert from the University of Minnesota or the Minnesota State Colleges and
Universities, and two other representatives with expertise related to the project being
evaluated. The commissioner may add a technical representative from a unit of federal or
local government. The members of the technical evaluation panel may not be associated
with the restoration, may vary depending upon the projects being reviewed, and shall
avoid any potential conflicts of interest. Each year, the commissioner shall may assign
a coordinator to identify a sample of up to ten habitat restoration projects completed
with parks and trails funding. The coordinator shall secure the restoration plans for the
projects specified and direct the technical evaluation panel to evaluate the restorations
relative to the law, current science, and the stated goals and standards in the restoration
plan and, when applicable, to the Board of Water and Soil Resources' native vegetation
establishment and enhancement guidelines. The coordinator shall summarize the findings
of the panel and provide a report to the chairs of the respective house of representatives
and senate policy and finance committees with jurisdiction over natural resources and
spending from the parks and trails fund. The report shall determine if the restorations are
meeting planned goals, any problems with the implementation of restorations, and, if
necessary, recommendations on improving restorations. The report shall be focused on
improving future restorations. Up to one-tenth of one percent of forecasted receipts from
the parks and trails fund may be used for restoration evaluations under this section.

    Sec. 8. LASALLE LAKE STATE RECREATION AREA.
    Subdivision 1. LaSalle Lake State Recreation Area, Hubbard County. The
LaSalle Lake State Recreation Area is established in Hubbard County.
    Subd. 2. Boundaries. The following described lands are located within the
boundaries of the LaSalle Lake State Recreation Area, all in Hubbard County:
    (1) the Southwest Quarter of the Southwest Quarter and the Northwest Quarter of the
Southwest Quarter, except the East 10 acres thereof, of Section 29; the Northeast Quarter
of the Northeast Quarter, the Northwest Quarter of the Northeast Quarter, the Southwest
Quarter of the Northeast Quarter, the Northeast Quarter of the Southwest Quarter, the
Southeast Quarter of the Northwest Quarter, the Southeast Quarter of the Northeast
Quarter, and Government Lots 2, 3, 4, 5, 6, 7, 8, and 9, of Section 30; Government Lots 1,
2, 5, 6, 7, 8, 9, and 10, of Section 31; and Government Lots 1 and 4 of Section 32; all in
Township 145 North, Range 35 West; and
    (2) Government Lot 12, Section 19, Township 145 North, Range 35.
    Subd. 3. Administration. The commissioner of natural resources shall administer
the area according to Minnesota Statutes, section 86A.05, subdivision 3, subject to
existing rules and regulations for state recreation areas. LaSalle Lake State Recreation
Area shall be administered as a satellite unit of Itasca State Park.

    Sec. 9. LASALLE LAKE STATE RECREATION AREA MANAGEMENT
OPTIONS.
By March 1, 2012, the commissioner of natural resources shall submit a report to
the senate and house of representatives committees and divisions with jurisdiction over
natural resources policy and finance evaluating options for the management of the resort
within the LaSalle Lake State Recreation Area, including an evaluation of the option
to lease the resort to a nonstate entity. The evaluation shall include potential financial
arrangements or mechanisms that would make the equivalent of local taxes or payments in
lieu of taxes the responsibility of the nonstate entity.

    Sec. 10. EFFECTIVE DATE; RELATIONSHIP TO OTHER
APPROPRIATIONS.
Unless otherwise specified, this article is effective retroactively from July 1, 2011,
and supersedes and replaces funding authorized by order of the Second Judicial District
Court in Case No. 62-CV-11-5203.

ARTICLE 4
ARTS AND CULTURAL HERITAGE FUND


Section 1. ARTS AND CULTURAL HERITAGE FUND APPROPRIATIONS.
    The sums shown in the columns marked "Appropriations" are appropriated to the
entities and for the purposes specified in this article. The appropriations are from the arts
and cultural heritage fund, and are available for the fiscal years indicated for allowable
activities under the Minnesota Constitution, article XI, section 15. "The first year" is fiscal
year 2012. "The second year" is fiscal year 2013. "The biennium" is fiscal years 2012
and 2013. All appropriations in this article are onetime.

APPROPRIATIONS

Available for the Year

Ending June 30

2012
2013


Sec. 2. ARTS AND CULTURAL HERITAGE

Subdivision 1.Total Appropriation
$
52,600,000
$
52,714,000
The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.Availability of Appropriation
Money appropriated in this article may
not be spent on activities unless they are
directly related to and necessary for a specific
appropriation. Money appropriated in this
article must not be spent on indirect costs
or other institutional overhead charges that
are not directly related to and necessary for
a specific appropriation. Notwithstanding
Minnesota Statutes, section 16A.28, and
unless otherwise specified in this article,
fiscal year 2012 appropriations are available
until June 30, 2013, and fiscal year 2013
appropriations are available until June 30,
2014. If a project receives federal funds, the
time period of the appropriation is extended
to equal the availability of federal funding.

Subd. 3.Minnesota State Arts Board
22,167,000
23,314,000
These amounts are appropriated to the
Minnesota State Arts Board for arts, arts
education, and arts access. Grant agreements
entered into by the Minnesota State Arts
Board and other recipients of appropriations
in this subdivision shall ensure that
these funds are used to supplement and
not substitute for traditional sources of
funding. Appropriations made directly
to the Minnesota State Arts Board shall
supplement, and shall not substitute for,
traditional sources of funding. Each grant
program established within this appropriation
shall be separately administered from other
state appropriations for program planning
and outcome measurements, but may take
into consideration other state resources
awarded in the selection of applicants and
grant award size.
Arts and Arts Access Initiatives.
$17,003,000 the first year and $18,150,000
the second year are to support Minnesota
artists and arts organizations in creating,
producing, and presenting high-quality arts
activities; to overcome barriers to accessing
high-quality arts activities; and to instill the
arts into the community and public life in
this state.
A portion of these funds may be used to:
(1) pay attendance fees and travel costs
for youth to visit art museums, arts
performances, or other arts activities; or
(2) bring artists to schools, libraries, or other
community centers or organizations for
teaching, training, or performance purposes.
Arts Education. $3,276,000 the first year
and $3,276,000 the second year are for
high-quality, age-appropriate arts education
for Minnesotans of all ages to develop
knowledge, skills, and understanding of the
arts.
In collaboration with the Perpich Center
for Arts Education, a portion of this
appropriation may be used for grants to
school districts to provide materials or
resources to teachers, students, and parents
to promote achievement of K-12 academic
standards in the arts.
Arts and Cultural Heritage. $1,073,000
the first year and $1,073,000 the second year
are for events and activities that represent the
diverse cultural arts traditions, including folk
and traditional artists and art organizations,
represented in this state.
Administration, Fiscal Oversight, and
Accountability. $815,000 the first year
and $815,000 the second year are for
administration of grant programs, delivering
technical services, providing fiscal oversight
for the statewide system, and ensuring
accountability for these state resources.
Census. The Minnesota State Arts Board, in
partnership with regional arts councils, shall
maintain a census of Minnesota artists and
artistic organizations.
Thirty percent of the total appropriated to
each of the categories established in this
subdivision is for grants to the regional arts
councils. This percentage does not apply to
administrative costs.

Subd. 4.Department of Education
3,000,000
3,000,000
These amounts are appropriated to the
commissioner of education for grants
allocated using existing formulas under
Minnesota Statutes, section 134.355, to the
12 Minnesota regional library systems, to
provide educational opportunities in the arts,
history, literary arts, and cultural heritage
of Minnesota. These funds may be used
to sponsor programs provided by regional
libraries or to provide grants to local arts
and cultural heritage programs for programs
in partnership with regional libraries. This
appropriation is available until June 30, 2015.

Subd. 5.Minnesota Historical Society
12,050,000
12,050,000
These amounts are appropriated to the
governing board of the Minnesota Historical
Society to preserve and enhance access to
Minnesota's history and its cultural and
historical resources. Grant agreements
entered into by the Minnesota Historical
Society and other recipients of appropriations
in this subdivision shall ensure that
these funds are used to supplement and
not substitute for traditional sources of
funding. Funds directly appropriated to the
Minnesota Historical Society shall be used to
supplement, and not substitute for, traditional
sources of funding. Notwithstanding
Minnesota Statutes, section 16A.28, for
historic preservation projects that improve
historic structures, the amounts are available
until June 30, 2015.
Statewide Historic and Cultural Grants.
$5,250,000 the first year and $5,250,000
the second year are for history programs
and projects operated or conducted by or
through local, county, regional, or other
historical or cultural organizations; or for
activities to preserve significant historic
and cultural resources. Funds are to be
distributed through a competitive grants
process. The Minnesota Historical Society
shall administer these funds using established
grants mechanisms, with assistance from
the advisory committee created under Laws
2009, chapter 172, article 4, section 2,
subdivision 4, paragraph (b), item (ii).
Programs. $4,800,000 the first year and
$4,800,000 the second year are for programs
and purposes related to the historical and
cultural heritage of the state of Minnesota,
conducted by the Minnesota Historical
Society.
History Partnerships. $1,500,000 the
first year and $1,500,000 the second year
are for partnerships involving multiple
organizations, which may include the
Minnesota Historical Society, to preserve and
enhance access to Minnesota's history and
cultural heritage in all regions of the state.
Statewide Survey of Historical and
Archaeological Sites. $250,000 the first
year and $250,000 the second year are
for a contract or contracts to be let on a
competitive basis to conduct statewide
surveys of Minnesota's sites of historical,
archaeological, and cultural significance.
Results of this survey must be published in
a searchable form, available to the public on
a cost-free basis. The Minnesota Historical
Society, the Office of the State Archaeologist,
and the Indian Affairs Council shall each
appoint a representative to an oversight
board to select contractors and direct the
conduct of these surveys. The oversight
board shall consult with the Departments of
Transportation and Natural Resources.
Digital Library. $250,000 the first year and
$250,000 the second year are for a digital
library project to preserve, digitize, and share
Minnesota images, documents, and historical
materials. The Minnesota Historical Society
shall cooperate with the Minitex interlibrary
loan system and shall jointly share this
appropriation for these purposes.

Subd. 6.Department of Administration
9,175,000
8,150,000
These amounts are appropriated to the
commissioner of administration for grants
to the named organizations for the purposes
specified in this subdivision. Up to one
percent of funds may be used by the
commissioner for grants administration.
Grant agreements entered into by
the commissioner and recipients of
appropriations in this subdivision must
ensure that money appropriated in this
subdivision is used to supplement and not
substitute for traditional sources of funding.
Public Radio Grants. $2,650,000 the first
year and $2,650,000 the second year are for
a competitive Arts and Cultural Heritage
Grants Program-Public Radio.
The commissioner shall solicit proposals
and award grants to public radio stations
that satisfy the eligibility requirements
under Minnesota Statutes, section 129D.14,
subdivision 3, and create, produce, acquire,
or distribute radio programs that educate,
enhance, or promote local, regional, or
statewide items of artistic, cultural, or
historic significance. The commissioner
shall give preference to projects that
expand Minnesotans' access to knowledge,
information, arts, state history, or cultural
heritage. This appropriation is available for
eligible costs incurred as of July 1, 2011, and
does not expire until June 30, 2015.
Public Television. $3,700,000 the first
year and $3,700,000 the second year are for
grants to the Minnesota Public Television
Association for production and acquisition
grants according to Minnesota Statutes,
section 129D.18. In recognition of the
sesquicentennial of the American Civil
War, the Minnesota Public Television
Association shall produce new programming
on Minnesota history during that period.
This appropriation is available for eligible
costs incurred as of July 1, 2011, and does
not expire until June 30, 2015.
Veterans Camps. $475,000 the first year
is for grants of $400,000 to the Disabled
Veterans Rest Camp located on Big Marine
Lake in Washington County and $75,000 to
the Veterans on the Lake Resort located on
Fall Lake in St. Louis County.
Zoos. $300,000 the first year and $300,000
the second year are for grants of $200,000
each year to the Como Park Zoo and
$100,000 each year to the Lake Superior Zoo
for programmatic development.
Minnesota Children's Museum. $500,000
the first year and $500,000 the second year
are for grants to the Minnesota Children's
Museum. These amounts are for arts, arts
education, and arts access and to preserve
Minnesota's history and cultural heritage.
Science Museum of Minnesota. $500,000
the first year and $500,000 the second year
are for grants to the Science Museum of
Minnesota. These amounts are for arts, arts
education, and arts access and to preserve
Minnesota's history and cultural heritage.
Minnesota Film and TV Board. $500,000
the first year and $500,000 the second year
are for grants to the Minnesota Film and
TV Board for grants to Minnesota residents
to create film or television productions that
promote Minnesota's cultural heritage and
for the film production jobs program under
Minnesota Statutes, section 116U.26. This
appropriation is available until June 30, 2015.
State Capitol Preservation Commission.
$550,000 the first year is for the purposes of
Minnesota Statutes, section 16B.2405. This
appropriation is available until spent.

Subd. 7.Minnesota Zoological Garden
1,500,000
1,500,000
These amounts are appropriated to
the Minnesota Zoological Board for
programmatic development of the Minnesota
Zoo.

Subd. 8.Minnesota Humanities Center
1,575,000
1,575,000
These amounts are appropriated to the board
of directors of the Minnesota Humanities
Center for the purposes specified in this
subdivision.
Programs and Purposes. $325,000 the first
year and $325,000 the second year are for
programs and purposes of the Minnesota
Humanities Center.
The Minnesota Humanities Center may
consider museums and organizations
celebrating the ethnic identities of
Minnesotans for grants from these funds.
Councils of Color. $500,000 the first
year and $500,000 the second year are for
competitive grants to the Council on Asian
Pacific Minnesotans, the Council on Black
Minnesotans, the Indian Affairs Council, and
the Chicano Latino Affairs Council. Grants
are for programs and cooperation between
the Minnesota Humanities Center and the
grant recipients for community events and
programs that celebrate and preserve artistic,
historical, and cultural heritage.
Civics Education. $250,000 the first year
and $250,000 the second year are for a
competitive Arts and Cultural Heritage
Grants Program-Civics Education. The
commissioner shall award grants to entities
that conduct civics education programs
for the civic and cultural development of
Minnesota youth.
Children's Museums Grants. $500,000 the
first year and $500,000 the second year are
for a competitive Arts and Cultural Heritage
Grants Program-Children's Museums.
The board of directors shall solicit proposals
and award grants to children's museums
for projects and programs that maintain or
promote our cultural heritage.

Subd. 9.Perpich Center For Arts Education
850,000
850,000
These amounts are appropriated to the board
of directors of the Perpich Center for Arts
Education for arts, arts education, and arts
access and to preserve Minnesota's history
and cultural heritage. This appropriation is
available until June 30, 2015.

Subd. 10.Department of Agriculture
1,400,000
1,400,000
These amounts are appropriated to the
commissioner of agriculture for grants to
county agricultural societies to enhance arts
access and education and to preserve and
promote Minnesota's history and cultural
heritage as embodied in its county fairs.
The grants shall be in addition to the aid
distributed to county agricultural societies
under Minnesota Statutes, section 38.02. The
commissioner shall award grants as follows:
(1) $700,000 each year distributed 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; and
(2) $700,000 each year for a competitive
Arts and Cultural Heritage Grants
Program-County Fairs. The commissioner
shall award grants for the development or
enhancement of county fair facilities or other
projects or programs that provide access
to the arts, arts education, or agricultural,
historical, and cultural heritage programs,
including but not limited to agricultural
education centers, arts buildings, and
performance stages.

Subd. 11.Indian Affairs Council
875,000
875,000
These amounts are appropriated to the Indian
Affairs Council for the purposes identified in
this subdivision.
Language Working Group. $75,000 the
first year and $75,000 the second year are
for continuation of the Working Group on
Dakota and Ojibwe Language Revitalization
and Preservation established under Laws
2009, chapter 172, article 4, section 9.
Language Preservation and Education.
$550,000 the first year and $550,000 the
second year are for grants for programs
that preserve Dakota and Ojibwe Indian
languages and to foster educational programs
in Dakota and Ojibwe languages.
Language Immersion. $250,000 the first
year and $250,000 the second year are for
grants of $125,000 each year to the Niigaane
Ojibwe Immersion School and the Wicoie
Nandagikendan Urban Immersion Project to:
(1) develop and expand K-12 curriculum;
(2) provide fluent speakers in the classroom;
(3) develop appropriate testing and
evaluation procedures; and
(4) develop community-based training and
engagement.

Subd. 12.Legislature
8,000
-0-
This amount is appropriated to the Legislative
Coordinating Commission to operate the
Web site for dedicated funds required
under Minnesota Statutes, section 3.303,
subdivision 10.

    Sec. 3. [15B.32] STATE CAPITOL PRESERVATION COMMISSION.
    Subdivision 1. Definitions. (a) As used in this section, the terms defined in this
subdivision have the following meanings.
(b) "Commission" means the State Capitol Preservation Commission created under
this section.
(c) "Capitol Area" means the geographic area defined in section 15B.02.
(d) "Board" means the Capitol Area Architectural and Planning Board created under
section 15B.03.
(e) "Predesign" has the meaning given in section 16B.335, subdivision 3, paragraph
(a).
    Subd. 2. Membership. The State Capitol Preservation Commission consists of 22
members, appointed as follows:
(1) the governor;
(2) the lieutenant governor;
(3) the attorney general;
(4) the chief justice of the Supreme Court, or the chief justice's designee, who shall
be a member of the Supreme Court;
(5) the majority leader of the senate or the majority leader's designee, who shall be
a member of the senate;
(6) the speaker of the house or the speaker's designee, who shall be a member of the
house of representatives;
(7) two members of the senate, including one member from the majority party
appointed by the majority leader and one member from the minority party appointed by
the minority leader;
(8) two members of the house of representatives, including one member appointed
by the speaker of the house and one member from the minority party appointed by the
minority leader;
(9) the chair and ranking minority member of the house of representatives committee
with jurisdiction over capital investment and the chair and ranking minority member of
the senate committee with jurisdiction over capital investment;
(10) the commissioner of administration or the commissioner's designee;
(11) the commissioner of public safety or the commissioner's designee;
(12) the executive director of the Minnesota Historical Society or the executive
director's designee;
(13) the executive secretary of the Capitol Area Architectural and Planning Board;
and
(14) four public members appointed by the governor.
    Subd. 3. Terms and compensation. (a) A member serving on the commission
because the member or the appointing authority for the member holds an elected or
appointed office shall serve on the commission as long as the member or the appointing
authority holds the office.
(b) Public members of the commission shall serve two-year terms. The public
members may not serve for more than three consecutive terms.
(c) The removal of members and filling of vacancies on the commission are as
provided in section 15.059. Public members may receive compensation and expenses as
provided under section 15.059, subdivision 3.
    Subd. 4. Officers and meetings. (a) The governor is the chair of the commission.
The lieutenant governor is the vice-chair of the commission and may act as the chair
of the commission in the absence of the governor. The governor may designate a staff
member to attend commission meetings and vote on the governor's behalf in the absence
of the governor.
(b) The commission shall meet at least quarterly and at other times at the call of the
chair. Meetings of the commission are subject to chapter 13D.
    Subd. 5. Administrative support. The commission may designate an executive
secretary and obtain administrative support through a contract with a state agency or
other means.
    Subd. 6. Duties. (a) The commission:
(1) shall exercise ongoing coordination of the restoration, protection, risk
management, and preservation of the Capitol building;
(2) shall consult with and advise the commissioner of administration, the board, and
the Minnesota Historical Society regarding their applicable statutory responsibilities
for and in the Capitol building;
(3) may assist in the selection of an architectural firm to assist in the preparation of
the predesign plan for the restoration of the Capitol building;
(4) shall develop a comprehensive, multiyear, predesign plan for the restoration
of the Capitol building, review the plan periodically, and, as appropriate, amend and
modify the plan. The predesign plan shall identify appropriate and required functions of
the Capitol building; identify and address space requirements for legislative, executive,
and judicial branch functions; and identify and address the long-term maintenance
and preservation requirements of the Capitol building. In developing the predesign
plan, the commission shall take into account the comprehensive plan for the Minnesota
State Capitol Area, as amended in 2010, the rules governing zoning and design for the
Capitol Area, citizen access, information technology needs, energy efficiency, security,
educational programs including public and school tours, and any additional space needs
for the efficient operation of state government;
(5) shall develop and implement a comprehensive financial plan to fund the
preservation and restoration of the Capitol building;
(6) shall provide annual reports about the condition of the Capitol building and its
needs, as well as all activities related to the restoration of the Capitol building; and
(7) may solicit gifts, grants, or donations of any kind from any private or public
source to carry out the purposes of this section. All gifts, grants, or donations received by
the commission shall be deposited in a State Capitol preservation account established in
the special revenue fund. Money in the account is appropriated to the commissioner of
administration for the activities of the commission and implementation of the predesign
plan under this section.
(b) By January 15 of each year, the commission shall report to the chairs and ranking
minority members of the legislative committees with jurisdiction over the commission
regarding the activities and efforts of the commission in the preceding calendar year,
including recommendations adopted by the commission, the comprehensive financial plan
required under paragraph (a), clause (5), and any proposed draft legislation necessary to
implement the recommendations of the commission.
    Subd. 7. Expiration. Notwithstanding section 15.059, subdivision 5, the State
Capitol Preservation Commission does not expire.

    Sec. 4. [15B.34] CAPITOL BUILDING POWERS AND DUTIES.
The board shall:
(1) jointly, with the commissioner of administration and the Minnesota Historical
Society, establish standards and policies for the repair, furnishing, appearance, and
cleanliness of and change to the public and ceremonial areas of the Capitol building;
(2) review and approve plans and specifications and any changes to approved plans
and specifications involving the alteration of the public and ceremonial areas and the
exterior of the Capitol building;
(3) jointly, with the Minnesota Historical Society, review and approve the design,
structural composition, and location of all monuments, memorials, or works of art
presently located in the public and ceremonial areas of the State Capitol, or that will be
placed in the public or ceremonial areas, according to section 138.68; and
(4) assist the State Capitol Preservation Commission with performance of its duties
as needed.

    Sec. 5. [16B.2405] CAPITOL BUILDING POWERS AND DUTIES.
The commissioner, upon receipt of funding for these purposes, shall:
(1) maintain and operate the Capitol building and grounds according to section
16B.24 and other applicable law;
(2) designate a project manager to oversee and manage predesign, design, and
construction contracts and funding for all modifications to the Capitol building;
(3) manage design and construction projects and funding for the Capitol building
according to section 16B.31 and other applicable law;
(4) lease space in the Capitol building, as provided in section 16B.24, to state
agencies, constitutional officers, and the court administrator on behalf of the judicial
branch and allocate space in the Capitol building to the legislative branch as determined
by the commission;
(5) provide information about the Capitol building to the commission, legislative
bodies, and others as needed regarding maintenance, operation, leasing, condition
assessments, design, and construction projects; and
(6) assist the State Capitol Preservation Commission with performance of its duties
as needed.

    Sec. 6. Minnesota Statutes 2010, section 129D.18, subdivision 3, is amended to read:
    Subd. 3. Conditions. (a) A public station receiving funds appropriated under this
section must:
(1) make programs produced with these funds available for broadcast to all other
public stations eligible to receive grants under this section;
(2) offer free public performance rights for classroom use of programs produced
with these funds to public educational institutions, excluding those materials for which
public television stations do not have rights to distribute;
(3) archive programs produced with these funds and make the programs available
for future use through encore broadcast or other distribution, including online; and
(4) ensure that underwriting credit is given to the Minnesota arts and cultural
heritage fund.
(b) Programs produced in partnership with other mission-centered nonprofit
organizations may be used by the partnering organization for their own educational or
promotional purposes.

    Sec. 7. Minnesota Statutes 2010, section 129D.18, subdivision 4, is amended to read:
    Subd. 4. Reporting. A public station receiving funds appropriated under this section
must report annually by January 15 to the commissioner, the Legislative Coordinating
Commission, and the chairs and ranking minority members of the senate and house
of representatives committees and divisions having jurisdiction over arts and cultural
heritage policy and finance regarding how the previous year's grant funds were expended.
This In addition to all information required of each recipient of money from the arts and
cultural heritage fund under section 3.303, subdivision 10, the report must contain specific
information for each program produced and broadcast, including the cost of production,
the number of stations broadcasting the program, estimated viewership, the number of
hours of legacy program content available for streaming on Web site downloads sites,
and other related measures. If the programs produced include educational material, the
public station must report on these efforts.

    Sec. 8. Minnesota Statutes 2010, section 129D.19, subdivision 5, is amended to read:
    Subd. 5. Reporting. A noncommercial radio station receiving funds appropriated
under this section must report annually by January 15 to the commissioner, the Legislative
Coordinating Commission, and the chairs and ranking minority members of the senate
and house of representatives committees and divisions having jurisdiction over arts and
cultural heritage policy and finance regarding how the previous year's grant funds were
expended. This In addition to all information required of each recipient of money from
the arts and cultural heritage fund under section 3.303, subdivision 10, the report must
contain specific information for each program produced and broadcast, including the
cost of production, the number of stations broadcasting the program, estimated number
of listeners, and other related measures. If the programs produced include educational
material, the noncommercial radio station must report on these efforts.

    Sec. 9. [138.70] CAPITOL BUILDING POWERS AND DUTIES.
The Minnesota Historical Society shall:
(1) assist and advise in research and preservation of historical features of the Capitol
building, appropriate custodial policies, and maintaining and repairing works of art
according to section 138.69;
(2) jointly, with the Capitol Area Architectural and Planning Board, review and
approve the design, structural composition, and location of all monuments, memorials, or
works of art presently located in the public and ceremonial areas of the Capitol building,
or proposed for placement in the public or ceremonial areas, according to section 138.68;
(3) assist with planning and design of restoration and renovations of the Capitol
building in order to provide public access and education through public interpretive
programs according to the society's statutory responsibilities under section 138.69; and
(4) assist the State Capitol Preservation Commission with performance of its duties
as needed.

    Sec. 10. Laws 2009, chapter 172, article 4, section 9, subdivision 5, is amended to read:
    Subd. 5. Report. The working group must report its findings and recommendations,
including draft legislation, if necessary, to the Indian Affairs Council and the chairs and
ranking minority members of the legislative committees and divisions with jurisdiction
over early childhood through grade 12 education and, higher education, and arts and
cultural heritage policy or finance by February 15, 2011, and again by February 15, 2012.
The committee working group expires on February 16, 2011 2013.

    Sec. 11. STATE CAPITOL PRESERVATION COMMISSION APPOINTMENTS
AND FIRST MEETING.
The appointing authorities designated in Minnesota Statutes, section 15B.32,
subdivision 2, must complete their initial appointments to the commission no later than
August 1, 2011. The governor, or the governor's designee, shall convene the first meeting
of the commission within 30 days after the appointments required under this section
have been completed.

    Sec. 12. EFFECTIVE DATE; RELATIONSHIP TO OTHER
APPROPRIATIONS.
Unless otherwise specified, this article is effective retroactively from July 1, 2011,
and supersedes and replaces funding authorized by order of the Second Judicial District
Court in Case No. 62-CV-11-5203.

ARTICLE 5
GENERAL PROVISIONS; ALL LEGACY FUNDS

    Section 1. Minnesota Statutes 2010, section 3.303, subdivision 10, is amended to read:
    Subd. 10. Constitutionally dedicated funding accountability. (a) The Legislative
Coordinating Commission shall develop and maintain a user-friendly, public-oriented
Web site that informs, educates, and demonstrates to the public how the constitutionally
dedicated funds in the arts and cultural heritage fund, outdoor heritage fund, clean water
fund, parks and trails fund, and environment and natural resources trust fund are being
expended to meet the requirements established for each fund in the state constitution.
Information provided on the Web site must include, but is not limited to:
(1) information on all project proposals received by the Outdoor Heritage Council
and the Legislative-Citizen Commission on Minnesota Resources;
(2) information on all projects receiving funding, including:
(i) the name of the project and a project description;
(ii) the name, telephone number, members of the board or equivalent governing
body, and e-mail address of the funding recipient and, when applicable, the Web site
address where the public can directly access detailed information on the recipient's receipt
and use of money for the project;
(iii) the amount and source of funding, including the fiscal year of the appropriation;
(iv) the amount and source of any additional funding or leverage;
(v) the duration of the project;
(vi) the number of full-time equivalents funded under the project. For the purposes
of this item, "full-time equivalent" means a position directly attributed to the receipt of
money from one or more of the funds covered under this section, calculated as the total
number of hours planned for the position divided by 2,088;
(vii) the direct expenses and administration costs of the project;
(viii) proposed measurable outcomes and the plan for measuring and evaluating
the results;
(ix) for pass-through, noncompetitive grants, the entity acting as the fiscal agent or
administering agency and a point of contact for additional information; and
    (x) for competitive grants, the name and a brief description of the qualifications of
all board members or members of an equivalent governing body ultimately responsible
for awarding the grants, as well as any grantmaking advisory group. In addition, an
entity that awards competitive grants, including but not limited to a state agency or any
statewide, regional, or local organization, must report whether an employee, decision
maker, advisory group member, or other person involved in the grant process disclosed
a conflict of interest or potential conflict of interest. If the entity reports that a conflict
of interest or potential conflict of interest was disclosed, the entity must provide the
Legislative Coordinating Commission with a contact person for additional information and
the Legislative Coordinating Commission must post this information on the Web site. An
entity that awards competitive grants must obtain and apply the conflict of interest policies
developed by the commissioner of administration under section 16B.98, subdivision 3,
unless the entity maintains and applies its own documented conflict of interest policies
which are substantially similar to the commissioner of administration's policies;
(3) actual measured outcomes and evaluation of projects as required under sections
85.53, subdivision 2; 114D.50, subdivision 2 4; and 129D.17, subdivision 2;
(4) education about the areas and issues the projects address, including, when
feasible, maps of where projects have been undertaken;
(5) all frameworks developed for future uses of each fund; and
(6) methods by which members of the public may apply for project funds under
any of the constitutionally dedicated funds.
(b) As soon as practicable or by January 15 of the applicable fiscal year, whichever
comes first, a state agency or other recipient of a direct appropriation from a fund covered
under this section shall submit the information required under paragraph (a) and, when
applicable, compile and submit the same information for any grant recipient or other
subrecipient of funding. All information for proposed and funded projects, including
the proposed measurable outcomes, must be made available on the Web site as soon
as practicable. Information on the measured outcomes and evaluation must be posted
as soon as it becomes available. The costs of these activities shall be paid out of the
arts and cultural heritage fund, outdoor heritage fund, clean water fund, parks and
trails fund, and the environment and natural resources trust fund proportionately. For
purposes of this section, "measurable outcomes" means outcomes, indicators, or other
performance measures that may be quantified or otherwise measured in order to measure
the effectiveness of a project or program in meeting its intended goal or purpose.
(c) The Legislative Coordinating Commission shall be responsible for receiving all
ten-year plans and 25-year frameworks for each of the constitutionally dedicated funds. To
the extent practicable, staff for the commission shall provide assistance and oversight to
these planning efforts and shall coordinate public access to hearings and public meetings
for all planning efforts.

    Sec. 2. Minnesota Statutes 2010, section 85.53, subdivision 2, is amended to read:
    Subd. 2. Expenditures; accountability. (a) A project or program receiving funding
from the parks and trails fund must meet or exceed the constitutional requirement to
support parks and trails of regional or statewide significance. A project or program
receiving funding from the parks and trails fund must include measurable outcomes, as
defined in section 3.303, subdivision 10, and a plan for measuring and evaluating the
results. A project or program must be consistent with current science and incorporate
state-of-the-art technology, except when the project or program is a portrayal or restoration
of historical significance.
(b) Money from the parks and trails fund shall be expended to balance the benefits
across all regions and residents of the state.
(c) All A state agency or other recipient of a direct appropriation from the parks and
trails fund must compile and submit all information for funded projects or programs,
including the proposed measurable outcomes and all other items required under section
3.303, subdivision 10, must be made available on 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
practicable. Information on the measured outcomes and evaluation must be posted as soon
as it becomes available.
(d) Grants funded by the parks and trails 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 parks and trails fund may only be spent on projects located
in Minnesota.
(f) When practicable, a direct recipient of an appropriation from the parks and
trails 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 parks and trails 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.

    Sec. 3. Minnesota Statutes 2010, section 97A.056, is amended by adding a subdivision
to read:
    Subd. 11. Recipient requirements. (a) A state agency or other recipient of a direct
appropriation from the outdoor heritage fund must compile and submit all information
for 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.
(b) When practicable, a direct recipient of an appropriation from the outdoor
heritage 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.
(c) Future eligibility for money from the outdoor heritage 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.

    Sec. 4. Minnesota Statutes 2010, 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) All 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, must be made available on
the Web site 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. Information on the measured outcomes and
evaluation must be posted 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.

    Sec. 5. Minnesota Statutes 2010, section 129D.17, subdivision 2, is amended to read:
    Subd. 2. Expenditures; accountability. (a) Funding from the arts and cultural
heritage fund may be spent only for arts, arts education, and arts access, and to preserve
Minnesota's history and cultural heritage. A project or program receiving funding from
the arts and cultural heritage fund must include measurable outcomes, and a plan for
measuring and evaluating the results. A project or program must be consistent with current
scholarship, or best practices, when appropriate and must incorporate state-of-the-art
technology when appropriate.
(b) Funding from the arts and cultural heritage fund may be granted for an entire
project or for part of a project so long as the recipient provides a description and cost for
the entire project and can demonstrate that it has adequate resources to ensure that the
entire project will be completed.
(c) Money from the arts and cultural heritage fund shall be expended for benefits
across all regions and residents of the state.
(d) All A state agency or other recipient of a direct appropriation from the arts and
cultural heritage fund must compile and submit all information for funded projects or
programs, including the proposed measurable outcomes and all other items required under
section 3.303, subdivision 10, must be made available on to the Legislative Coordinating
Commission Web site, as soon as practicable or by January 15 of the applicable fiscal year,
whichever comes first. Information on the measured outcomes and evaluation must be
posted 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.
(e) Grants funded by the arts and cultural heritage fund must be implemented
according to section 16B.98 and must account for all expenditures of funds. Priority for
grant proposals must be given to proposals involving grants that will be competitively
awarded.
(f) All money from the arts and cultural heritage fund must be for projects located
in Minnesota.
(g) When practicable, a direct recipient of an appropriation from the arts and cultural
heritage 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.
(h) Future eligibility for money from the arts and cultural heritage 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.

    Sec. 6. APPLICABILITY.
Sections 7 to 10 apply to any appropriation for fiscal year 2012 or 2013 from a legacy
fund. For the purposes of sections 7 to 10, "legacy fund" means the outdoor heritage fund,
the clean water fund, the parks and trails fund, or the arts and cultural heritage fund

    Sec. 7. GENERAL PROVISIONS.
    Subdivision. 1. Grants. Grants funded by a legacy fund must be implemented
according to Minnesota Statutes, section 16B.98, and the responsible entity must account
for all expenditures of funds.
    Subd. 2. Constitution. A recipient of money from a legacy fund must comply with
the Minnesota Constitution, article XI, section 15, and may not substitute money received
from a legacy fund for a traditional source of funding.
    Subd. 3. Trusts and similar instruments. A recipient of money from a legacy fund
must not use the money to fund a trust, endowment, or similar instrument unless:
(1) the entity reports no later than February 1 each year to the commissioner of
management and budget and the legislative committees with jurisdiction over legacy
funds regarding the recipient's use and fiduciary stewardship of legacy funds during the
period; and
(2) the entity submits to regular audits of the trust, endowment, or similar instrument
by the Office of the Legislative Auditor.

    Sec. 8. IN THE EVENT OF A LAWSUIT.
(a) An appropriation or portion of an appropriation from a legacy fund is canceled to
the extent that a court determines that the appropriation unconstitutionally substitutes for
a traditional source of funding.
(b) Any grant contract or similar agreement that awards money from a legacy fund
must contain the information in paragraph (a).

    Sec. 9. LEGACY ACCOUNTING; TECHNICAL ASSISTANCE.
No later than January 1, 2012, the commissioner of management and budget shall
finalize guidance and best practices to assist state agencies in uniformly accounting for
their expenditure of legacy funds. The commissioner shall make this information available
to all state agencies identified in this act.

    Sec. 10. EFFECTIVE DATE; RELATIONSHIP TO OTHER
APPROPRIATIONS.
Unless otherwise specified, this article is effective retroactively from July 1, 2011,
and supersedes and replaces funding authorized by order of the Second Judicial District
Court in Case No. 62-CV-11-5203.
Presented to the governor July 20, 2011
Signed by the governor July 20, 2011, 9:10 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