1.1                          A bill for an act 
  1.2             relating to the environment; providing authority, 
  1.3             direction, and funding to achieve and maintain water 
  1.4             quality standards for Minnesota's surface waters; 
  1.5             appropriating money; amending Minnesota Statutes 2002, 
  1.6             section 290.06, subdivision 1; Minnesota Statutes 2003 
  1.7             Supplement, section 290.06, subdivision 2c; proposing 
  1.8             coding for new law in Minnesota Statutes, chapter 116. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [116.381] [CITATION.] 
  1.11     Sections 116.381 to 116.389 may be cited as the Minnesota 
  1.12  Surface Water Protection and Restoration Act. 
  1.13     Sec. 2.  [116.382] [LEGISLATIVE PURPOSE AND FINDINGS.] 
  1.14     Subdivision 1.  [PURPOSE.] The purpose of the Minnesota 
  1.15  Surface Water Protection and Restoration Act is to protect, 
  1.16  restore, and preserve the quality of Minnesota's surface waters 
  1.17  by providing authority, direction, and resources to achieve and 
  1.18  maintain water quality standards as required by section 303(d) 
  1.19  of the federal Clean Water Act, United States Code, title 42, 
  1.20  section 1313(d), and applicable federal regulations. 
  1.21     Subd. 2.  [FINDINGS.] The legislature finds that: 
  1.22     (1) there is a close link between protecting, restoring, 
  1.23  and preserving the quality of Minnesota's surface waters and the 
  1.24  ability to develop the state's economy, enhance its quality of 
  1.25  life, and protect its human and natural resources; 
  1.26     (2) achieving the state's water quality goals will require 
  1.27  long-term commitment and cooperation by all state and local 
  2.1   agencies, and other public and private organizations and 
  2.2   individuals, with responsibility and authority for water 
  2.3   management, planning, and protection; and 
  2.4      (3) all persons and organizations whose activities affect 
  2.5   the quality of waters, including point and nonpoint sources of 
  2.6   pollution, have a responsibility to participate in and support 
  2.7   efforts to achieve the state's water quality goals. 
  2.8      Sec. 3.  [116.383] [DEFINITIONS.] 
  2.9      Subdivision 1.  [APPLICATION.] The definitions provided in 
  2.10  this section apply to the terms used in sections 1 to 9. 
  2.11     Subd. 2.  [CITIZEN MONITORING.] "Citizen monitoring" means 
  2.12  monitoring of surface water quality by individuals and 
  2.13  nongovernmental organizations that is consistent with Pollution 
  2.14  Control Agency guidance on monitoring procedures, quality 
  2.15  assurance protocols, and data management. 
  2.16     Subd. 3.  [TOTAL MAXIMUM DAILY LOAD OR TMDL.] "Total 
  2.17  maximum daily load" or "TMDL" means a calculation of the maximum 
  2.18  amount of a pollutant that may be introduced into a surface 
  2.19  water and still ensure that applicable water quality standards 
  2.20  for that water are achieved and maintained.  A TMDL is the sum 
  2.21  of the pollutant load allocations for all sources of the 
  2.22  pollutant.  A TMDL must take into account seasonable variations 
  2.23  and a margin of safety. 
  2.24     Subd. 4.  [FEDERAL TMDL REQUIREMENTS.] "Federal TMDL 
  2.25  requirements" means the requirements of section 303(d) of the 
  2.26  federal Clean Water Act, United States Code, title 42, section 
  2.27  1313(d), and associated regulations and guidance. 
  2.28     Subd. 5.  [IMPAIRED WATER.] "Impaired water" means surface 
  2.29  water that does not meet applicable water quality standards due 
  2.30  in whole or in part to pollutants from point or nonpoint 
  2.31  sources, or any combination thereof. 
  2.32     Subd. 6.  [POLLUTANT LOAD ALLOCATIONS.] "Pollutant load 
  2.33  allocations" means the wasteload allocation and load allocation 
  2.34  for a pollutant that are necessary to comply with the total 
  2.35  loading capacity for a pollutant required by a TMDL.  "Wasteload 
  2.36  allocation" includes loading attributable to existing and future 
  3.1   point sources of the pollutant.  "Load allocation" includes 
  3.2   loading attributable to existing and future nonpoint sources, as 
  3.3   well as natural background, of the pollutant.  "Natural 
  3.4   background" means pollution resulting from the multiplicity of 
  3.5   factors in nature that determine the physical, chemical, or 
  3.6   biological conditions in a water body but does not include 
  3.7   measurable and distinguishable pollution that is attributable to 
  3.8   human activity or influence. 
  3.9      Subd. 7.  [PUBLIC AGENCIES.] "Public agencies" means all 
  3.10  state agencies, political subdivisions, and other public 
  3.11  organizations, with authority, responsibility, or expertise in 
  3.12  protecting, restoring, or preserving the quality of surface 
  3.13  waters, managing or planning for surface waters and related 
  3.14  lands, or financing waters-related projects.  Public agencies 
  3.15  includes counties, cities, towns, joint powers organizations and 
  3.16  special purpose units of government, and the University of 
  3.17  Minnesota and other public educational institutions. 
  3.18     Subd. 8.  [RESTORATION.] "Restoration" means actions, 
  3.19  including effectiveness monitoring, that are taken to achieve 
  3.20  and maintain water quality standards for impaired waters in 
  3.21  accordance with a TMDL that has been approved by the United 
  3.22  States Environmental Protection Agency under federal TMDL 
  3.23  requirements. 
  3.24     Subd. 9.  [SURFACE WATERS.] "Surface waters" means waters 
  3.25  of the state as defined in section 115.01, subdivision 22, 
  3.26  excluding groundwater as defined in section 115.01, subdivision 
  3.27  6. 
  3.28     Subd. 10.  [THIRD-PARTY TMDL.] "Third-party TMDL" means a 
  3.29  TMDL that is developed in whole or in part by a public or 
  3.30  private entity other than the Minnesota Pollution Control Agency 
  3.31  consistent with the goals, policies, and priorities in section 
  3.32  116.384. 
  3.33     Subd. 11.  [WATER QUALITY STANDARDS.] "Water quality 
  3.34  standards" means state and federal law, rules, and regulations 
  3.35  establishing designated uses for surface waters, and setting 
  3.36  forth the standards and requirements governing the quality or 
  4.1   properties of surface waters that must be achieved to support 
  4.2   those designated uses. 
  4.3      Sec. 4.  [116.384] [IMPLEMENTATION; COORDINATION; GOALS; 
  4.4   POLICIES; AND PRIORITIES.] 
  4.5      Subdivision 1.  [COORDINATION AND COOPERATION.] In 
  4.6   implementing sections 116.381 to 116.389, the Pollution Control 
  4.7   Agency and other public agencies shall take into consideration 
  4.8   the relevant provisions of local and other applicable water 
  4.9   management, conservation, land use, land management, and 
  4.10  development plans and programs.  Public agencies with authority 
  4.11  for local water management, conservation, land use, land 
  4.12  management, and development plans shall take into consideration 
  4.13  the manner in which their plans affect the implementation of 
  4.14  sections 116.381 to 116.389.  Public agencies, in consultation 
  4.15  with the Pollution Control Agency, shall identify opportunities 
  4.16  to participate and assist in the successful implementation of 
  4.17  sections 116.381 to 116.389, including the funding or technical 
  4.18  assistance needs, if any, that would be necessary to take such 
  4.19  actions.  In implementing sections 116.381 to 116.389, the 
  4.20  Pollution Control Agency and other public agencies shall 
  4.21  endeavor to engage the cooperation of all organizations and 
  4.22  individuals whose activities affect the quality of surface 
  4.23  waters, including point and nonpoint sources of pollution, and 
  4.24  who have authority and responsibility for water management, 
  4.25  planning, and protection.  To the extent practicable, the 
  4.26  Pollution Control Agency and other public agencies shall 
  4.27  endeavor to enter into formal and informal agreements and 
  4.28  arrangements with federal agencies and departments to jointly 
  4.29  utilize staff and resources to deliver programs or conduct 
  4.30  activities to achieve the intent of sections 116.381 to 116.389, 
  4.31  including efforts under the federal Clean Water Act and other 
  4.32  federal farm and soil and water conservation programs. 
  4.33     Subd. 2.  [GOALS FOR IMPLEMENTATION.] The following goals 
  4.34  shall guide the implementation of sections 116.381 to 116.389: 
  4.35     (1) to identify all impaired waters in accordance with 
  4.36  federal TMDL requirements within ten years after the effective 
  5.1   date of this section and thereafter to ensure continuing 
  5.2   evaluation of surface waters for impairments; 
  5.3      (2) to submit TMDL's to the United States Environmental 
  5.4   Protection Agency for all impaired waters in a timely manner in 
  5.5   accordance with federal TMDL requirements; 
  5.6      (3) to set a reasonable time for implementing restoration 
  5.7   of each identified impaired water; and 
  5.8      (4) to identify waters within an area for which a TMDL is 
  5.9   being developed that are at risk of becoming impaired and where 
  5.10  early assistance or incentives may be appropriate to prevent the 
  5.11  waters from becoming impaired waters. 
  5.12     Subd. 3.  [IMPLEMENTATION POLICIES.] The following policies 
  5.13  shall guide the implementation of sections 116.381 to 116.389: 
  5.14     (1) develop regional and watershed TMDL's, and TMDL's for 
  5.15  multiple pollutants, where reasonable and feasible; 
  5.16     (2) maximize use of available organizational, technical, 
  5.17  and financial resources to perform sampling, monitoring, and 
  5.18  other activities to identify impaired waters, including use of 
  5.19  volunteers consistent with appropriate quality assurance and 
  5.20  quality control requirements; 
  5.21     (3) maximize opportunities for restoration of impaired 
  5.22  waters by prioritizing and targeting of available programmatic, 
  5.23  financial, and technical resources, and by providing additional 
  5.24  state resources to complement and leverage available resources; 
  5.25     (4) use existing regulatory authorities to achieve 
  5.26  restoration for point and nonpoint sources of pollution where 
  5.27  applicable, and promote the development and use of effective 
  5.28  nonregulatory measures to address pollution sources for which 
  5.29  regulations are not applicable; 
  5.30     (5) utilize restoration methods that have a demonstrated 
  5.31  effectiveness in reducing impairments and provide the greatest 
  5.32  long-term positive impact on water quality protection and 
  5.33  improvement while incorporating innovative approaches on a 
  5.34  case-by-case basis; 
  5.35     (6) identify for the legislature any innovative approaches 
  5.36  that may strengthen or complement existing programs; and 
  6.1      (7) identify and encourage implementation of measures to 
  6.2   prevent otherwise nonimpaired waters from becoming impaired. 
  6.3      Subd. 4.  [PRIORITIES FOR IDENTIFYING IMPAIRED WATERS.] The 
  6.4   Pollution Control Agency, in accordance with federal TMDL 
  6.5   requirements, shall set priorities for identifying impaired 
  6.6   waters, giving consideration to: 
  6.7      (1) waters where impairments would pose the greatest 
  6.8   potential risk to human or aquatic health; and 
  6.9      (2) waters where data developed through public agency or 
  6.10  citizen monitoring or other means provides evidence that an 
  6.11  impaired condition exists. 
  6.12     Subd. 5.  [PRIORITIES FOR DEVELOPING TMDL'S.] The Pollution 
  6.13  Control Agency shall set priorities for developing and approving 
  6.14  TMDL's and submitting them to the United States Environmental 
  6.15  Protection Agency, taking into account the severity of the 
  6.16  impairment, the designated uses of those waters, and other 
  6.17  applicable federal TMDL requirements.  In setting priorities, 
  6.18  the Pollution Control Agency shall also give consideration to 
  6.19  waters and watersheds: 
  6.20     (1) with impairments that pose the greatest potential risk 
  6.21  to human or aquatic health; 
  6.22     (2) where other public agencies and participating 
  6.23  organizations and individuals, especially local, basinwide, or 
  6.24  regional agencies or organizations, have demonstrated readiness 
  6.25  to assist in carrying out the responsibilities, including 
  6.26  availability and organization of human, technical, and financial 
  6.27  resources necessary to undertake the work; and 
  6.28     (3) where there is demonstrated coordination and 
  6.29  cooperation among cities, counties, watershed districts, and 
  6.30  soil and water conservation districts in planning and 
  6.31  implementing activities that will assist in carrying out the 
  6.32  responsibilities. 
  6.33     Subd. 6.  [PRIORITIES FOR RESTORATION OF IMPAIRED 
  6.34  WATERS.] In implementing restoration of impaired waters, in 
  6.35  addition to the priority considerations in subdivision 5, 
  6.36  clauses (1) to (3), state agencies shall give priority for 
  7.1   restoration funding from the water protection account to 
  7.2   restoration projects that: 
  7.3      (1) coordinate with and utilize existing local authorities 
  7.4   and infrastructure for implementation; 
  7.5      (2) can be implemented in whole or in part by providing 
  7.6   support for existing or ongoing restoration efforts; 
  7.7      (3) most effectively leverage other sources of restoration 
  7.8   funding, including federal, state, local, and private sources of 
  7.9   funds; and 
  7.10     (4) show a high potential for early restoration and 
  7.11  delisting based upon data developed through public agency or 
  7.12  citizen monitoring or other means. 
  7.13     Sec. 5.  [116.385] [ADMINISTRATION; POLLUTION CONTROL 
  7.14  AGENCY.] 
  7.15     Subdivision 1.  [GENERAL DUTIES AND AUTHORITIES.] The 
  7.16  Pollution Control Agency, in accordance with federal TMDL 
  7.17  requirements, shall identify impaired waters and propose a list 
  7.18  of such waters for review and approval by the United States 
  7.19  Environmental Protection Agency, develop and approve TMDL's for 
  7.20  listed impaired waters and submit the approved TMDL's to the 
  7.21  United States Environmental Protection Agency in accordance with 
  7.22  federal TMDL requirements, and propose to delist waters from the 
  7.23  Environmental Protection Agency's impaired waters list.  The 
  7.24  Pollution Control Agency is primarily responsible for planning 
  7.25  and coordinating the restoration of impaired waters, monitoring 
  7.26  the effectiveness of restoration actions in achieving water 
  7.27  quality standards for impaired waters, and promoting actions 
  7.28  that are intended to prevent otherwise nonimpaired waters from 
  7.29  becoming impaired waters.  The Pollution Control Agency shall 
  7.30  seek to support existing or ongoing efforts to address or reduce 
  7.31  impairments in surface waters that have been listed as impaired 
  7.32  but where a TMDL has not yet been approved. 
  7.33     Subd. 2.  [ADMINISTRATIVE PROCEDURES FOR TMDL 
  7.34  APPROVAL.] The approval of a TMDL by the Pollution Control 
  7.35  Agency shall be considered a final decision of the agency and is 
  7.36  subject to the contested case procedures of sections 14.57 to 
  8.1   14.62 and to judicial review under sections 14.63 to 14.69.  A 
  8.2   TMDL is not subject to the rulemaking requirements of chapter 14.
  8.3      Subd. 3.  [THIRD-PARTY TMDL DEVELOPMENT.] The Pollution 
  8.4   Control Agency may enter into agreements with any qualified 
  8.5   public or private entity setting forth the terms and conditions 
  8.6   under which that entity is authorized to develop a third-party 
  8.7   TMDL.  A third-party TMDL is subject to modification and 
  8.8   approval by the Pollution Control Agency, and must be approved 
  8.9   by the Pollution Control Agency before it is submitted to the 
  8.10  United States Environmental Protection Agency.  The Pollution 
  8.11  Control Agency shall consider authorizing the development of 
  8.12  third-party TMDL's consistent with the goals, policies, and 
  8.13  priorities determined under section 116.384. 
  8.14     Subd. 4.  [IMPLEMENTATION PLAN.] The Pollution Control 
  8.15  Agency, in consultation with the Impaired Waters Coordinating 
  8.16  Council, shall prepare a plan for implementation of sections 
  8.17  116.381 to 116.389.  The plan shall address general procedures 
  8.18  and timeframes for implementing sections 116.381 to 116.389, and 
  8.19  shall include a more specific implementation work plan for the 
  8.20  next fiscal biennium and a framework for setting priorities to 
  8.21  address impaired waters consistent with section 116.384, 
  8.22  subdivisions 5 and 6.  The agency shall issue the first 
  8.23  implementation plan under this subdivision by December 1, 2004, 
  8.24  and shall issue a revised work plan by December 1 of each 
  8.25  even-numbered year thereafter. 
  8.26     Sec. 6.  [116.386] [IMPAIRED WATERS COORDINATING COUNCIL.] 
  8.27     Subdivision 1.  [CREATION; DUTIES.] An Impaired Waters 
  8.28  Coordinating Council is created to advise on the administration 
  8.29  and implementation of sections 116.381 to 116.389, and foster 
  8.30  coordination and cooperation as described in section 116.384, 
  8.31  subdivision 1.  The council may also advise the Pollution 
  8.32  Control Agency on the development of appropriate processes for 
  8.33  expert scientific review as described in section 116.387, 
  8.34  subdivision 2.  The Pollution Control Agency shall provide 
  8.35  administrative support for the council.  The members of the 
  8.36  council shall elect a chair from the nonagency members of the 
  9.1   council. 
  9.2      Subd. 2.  [MEMBERSHIP; APPOINTMENT.] The commissioners of 
  9.3   natural resources, agriculture, and the Pollution Control 
  9.4   Agency, and the executive director of the Board of Water and 
  9.5   Soil Resources shall each appoint one person from the respective 
  9.6   agency to serve as a member of the council.  The commissioner of 
  9.7   the Pollution Control Agency, in consultation with the other 
  9.8   state agencies represented on the council, shall appoint 13 
  9.9   additional nonagency members of the council as follows: 
  9.10     (1) two members representing statewide farm organizations; 
  9.11     (2) two members representing business organizations; 
  9.12     (3) two members representing environmental organizations; 
  9.13     (4) one member representing soil and water conservation 
  9.14  districts; 
  9.15     (5) one member representing watershed districts; 
  9.16     (6) one member representing organizations focused on 
  9.17  improvement of Minnesota lakes or streams; 
  9.18     (7) one member representing an organization of county 
  9.19  governments; 
  9.20     (8) two members representing organizations of city 
  9.21  governments; and 
  9.22     (9) one member representing the Metropolitan Council 
  9.23  established under section 473.123. 
  9.24     Subd. 3.  [TERMS; COMPENSATION; REMOVAL; FILLING 
  9.25  VACANCIES.] Terms, compensation, removal, and filling of 
  9.26  vacancies for the council shall be as provided in section 
  9.27  15.059, subdivisions 2, 3, and 4. 
  9.28     Subd. 4.  [RECOMMENDATIONS ON APPROPRIATION OF FUNDS.] The 
  9.29  Impaired Waters Coordinating Council shall recommend to the 
  9.30  governor the manner in which money from the water protection 
  9.31  account should be appropriated for the purposes identified in 
  9.32  section 116.389, subdivision 3.  In making its recommendations, 
  9.33  the council shall be mindful of the purposes, policies, goals, 
  9.34  and priorities in sections 116.381 to 116.386, in particular the 
  9.35  implementation goals and policies in section 116.384, 
  9.36  subdivisions 2 and 3, and the priorities in section 116.384, 
 10.1   subdivisions 4 to 6, and shall allocate adequate support and 
 10.2   resources for identifying impaired waters, developing TMDL's, 
 10.3   and restoration of impaired waters. 
 10.4      Subd. 5.  [BIENNIAL REPORT TO THE LEGISLATURE.] By December 
 10.5   1 of each even-numbered year, the council shall submit a report 
 10.6   to the legislature on the activities for which money from the 
 10.7   water protection account has been or will be spent for the 
 10.8   current biennium, and the activities for which money from the 
 10.9   account is recommended to be spent in the next biennium.  The 
 10.10  report due on December 1, 2012, shall include an evaluation of 
 10.11  the progress made through June 30, 2012, in implementing 
 10.12  sections 116.381 to 116.389, the need for funding of future 
 10.13  implementation of those sections, and recommendations for the 
 10.14  sources of such funding. 
 10.15     Sec. 7.  [116.387] [PUBLIC AND STAKEHOLDER PARTICIPATION; 
 10.16  SCIENTIFIC REVIEW; EDUCATION.] 
 10.17     Subdivision 1.  [PUBLIC AND STAKEHOLDER 
 10.18  PARTICIPATION.] Public agencies involved in the implementation 
 10.19  of sections 116.381 to 116.389 shall encourage participation by 
 10.20  the public and stakeholders, including local citizens, 
 10.21  landowners and managers, and public and private organizations, 
 10.22  in the identification of impaired waters, in developing TMDL's, 
 10.23  and in planning and implementing restoration of impaired 
 10.24  waters.  In particular, the Pollution Control Agency shall make 
 10.25  reasonable efforts to provide timely information to the public 
 10.26  and to stakeholders about impaired waters that have been 
 10.27  identified by the agency.  The agency shall seek broad and early 
 10.28  public and stakeholder participation in scoping the activities 
 10.29  necessary to develop a TMDL, including the scientific models, 
 10.30  methods, and approaches to be used in TMDL development, and to 
 10.31  implement restoration as provided in section 116.383, 
 10.32  subdivision 8. 
 10.33     Subd. 2.  [EXPERT SCIENTIFIC ADVICE.] The Pollution Control 
 10.34  Agency shall make use of available expertise from educational, 
 10.35  research, and technical organizations, including higher 
 10.36  education institutions, to provide appropriate independent 
 11.1   expert advice on models, methods, and approaches used in 
 11.2   identifying impaired waters, developing TMDL's, and implementing 
 11.3   restoration. 
 11.4      Subd. 3.  [EDUCATION.] The Pollution Control Agency, 
 11.5   Department of Natural Resources, Board of Water and Soil 
 11.6   Resources, Department of Agriculture, Office of Environmental 
 11.7   Assistance, and other public agencies involved in implementing 
 11.8   sections 116.381 to 116.389, shall develop and implement 
 11.9   strategies for informing, educating, and encouraging the 
 11.10  participation of citizens, stakeholders, and others regarding 
 11.11  the identification of impaired waters, development of TMDL's, 
 11.12  and development and implementation of restoration for impaired 
 11.13  waters. 
 11.14     Sec. 8.  Minnesota Statutes 2002, section 290.06, 
 11.15  subdivision 1, is amended to read: 
 11.16     Subdivision 1.  [COMPUTATION, CORPORATIONS.] The franchise 
 11.17  tax imposed upon corporations shall be computed by applying to 
 11.18  their taxable income the rate of ~~9.8~~ ten percent. 
 11.19     <b>[EFFECTIVE DATE.]</b> This section is effective for taxable 
 11.20  years beginning after December 31, 2003. 
 11.21     Sec. 9.  Minnesota Statutes 2003 Supplement, section 
 11.22  290.06, subdivision 2c, is amended to read: 
 11.23     Subd. 2c.  [SCHEDULES OF RATES FOR INDIVIDUALS, ESTATES, 
 11.24  AND TRUSTS.] (a) The income taxes imposed by this chapter upon 
 11.25  married individuals filing joint returns and surviving spouses 
 11.26  as defined in section 2(a) of the Internal Revenue Code must be 
 11.27  computed by applying to their taxable net income the following 
 11.28  schedule of rates: 
 11.29     (1) On the first $25,680, ~~5.35~~ 5.39 percent; 
 11.30     (2) On all over $25,680, but not over $102,030, ~~7.05~~ 7.15 
 11.31  percent; 
 11.32     (3) On all over $102,030, ~~7.85~~ 8.05 percent. 
 11.33     Married individuals filing separate returns, estates, and 
 11.34  trusts must compute their income tax by applying the above rates 
 11.35  to their taxable income, except that the income brackets will be 
 11.36  one-half of the above amounts.  
 12.1      (b) The income taxes imposed by this chapter upon unmarried 
 12.2   individuals must be computed by applying to taxable net income 
 12.3   the following schedule of rates: 
 12.4      (1) On the first $17,570, ~~5.35~~ 5.39 percent; 
 12.5      (2) On all over $17,570, but not over $57,710, ~~7.05~~ 7.15 
 12.6   percent; 
 12.7      (3) On all over $57,710, ~~7.85~~ 8.05 percent. 
 12.8      (c) The income taxes imposed by this chapter upon unmarried 
 12.9   individuals qualifying as a head of household as defined in 
 12.10  section 2(b) of the Internal Revenue Code must be computed by 
 12.11  applying to taxable net income the following schedule of rates: 
 12.12     (1) On the first $21,630, ~~5.35~~ 5.39 percent; 
 12.13     (2) On all over $21,630, but not over $86,910, ~~7.05~~ 7.15 
 12.14  percent; 
 12.15     (3) On all over $86,910, ~~7.85~~ 8.05 percent. 
 12.16     (d) In lieu of a tax computed according to the rates set 
 12.17  forth in this subdivision, the tax of any individual taxpayer 
 12.18  whose taxable net income for the taxable year is less than an 
 12.19  amount determined by the commissioner must be computed in 
 12.20  accordance with tables prepared and issued by the commissioner 
 12.21  of revenue based on income brackets of not more than $100.  The 
 12.22  amount of tax for each bracket shall be computed at the rates 
 12.23  set forth in this subdivision, provided that the commissioner 
 12.24  may disregard a fractional part of a dollar unless it amounts to 
 12.25  50 cents or more, in which case it may be increased to $1. 
 12.26     (e) An individual who is not a Minnesota resident for the 
 12.27  entire year must compute the individual's Minnesota income tax 
 12.28  as provided in this subdivision.  After the application of the 
 12.29  nonrefundable credits provided in this chapter, the tax 
 12.30  liability must then be multiplied by a fraction in which:  
 12.31     (1) the numerator is the individual's Minnesota source 
 12.32  federal adjusted gross income as defined in section 62 of the 
 12.33  Internal Revenue Code and increased by the additions required 
 12.34  under section 290.01, subdivision 19a, clauses (1), (5), and 
 12.35  (6), and reduced by the subtraction under section 290.01, 
 12.36  subdivision 19b, clause (11), and the Minnesota assignable 
 13.1   portion of the subtraction for United States government interest 
 13.2   under section 290.01, subdivision 19b, clause (1), after 
 13.3   applying the allocation and assignability provisions of section 
 13.4   290.081, clause (a), or 290.17; and 
 13.5      (2) the denominator is the individual's federal adjusted 
 13.6   gross income as defined in section 62 of the Internal Revenue 
 13.7   Code of 1986, increased by the amounts specified in section 
 13.8   290.01, subdivision 19a, clauses (1), (5), and (6), and reduced 
 13.9   by the amounts specified in section 290.01, subdivision 19b, 
 13.10  clauses (1) and (11). 
 13.11     <b>[EFFECTIVE DATE.]</b> This section is effective for taxable 
 13.12  years beginning after December 31, 2003. 
 13.13     Sec. 10.  [APPROPRIATIONS.] 
 13.14     Subdivision 1.  [GENERAL PROVISIONS.] The appropriations in 
 13.15  this section are from the environmental fund, and are available 
 13.16  until June 30, 2005. 
 13.17     Subd. 2.  [POLLUTION CONTROL AGENCY.] $100,000,000 is 
 13.18  appropriated to the Pollution Control Agency for the purposes 
 13.19  stated: 
 13.20     (1) $....... for statewide assessment of surface water 
 13.21  quality and trends.  Up to $....... of this appropriation is 
 13.22  available for grants to support volunteer monitoring of surface 
 13.23  waters; 
 13.24     (2) $....... to develop TMDL's pursuant to the United 
 13.25  States Environmental Protection Agency-approved 2002 impaired 
 13.26  waters list; 
 13.27     (3) $....... for restoration as defined in Minnesota 
 13.28  Statutes, section 116.383, subdivision 8; 
 13.29     (4) $....... for measures to prevent otherwise nonimpaired 
 13.30  waters from becoming impaired waters; and 
 13.31     (5) $....... for grants to public agencies associated with 
 13.32  individual sewage treatment systems and financial assistance for 
 13.33  upgrading and replacing those systems. 
 13.34     Sec. 11.  [EFFECTIVE DATE.] 
 13.35     Sections 1 to 7 are effective the day following final 
 13.36  enactment.  Section 10 is effective July 1, 2004.