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HF 846A

Conference Committee Report - 89th Legislature (2015 - 2016) Posted on 05/18/2015 11:21am

KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 846
1.2A bill for an act
1.3relating to state government; appropriating money for environment and natural
1.4resources; modifying public entity purchasing requirements; modifying solid
1.5waste provisions; modifying subsurface sewage treatment systems provisions;
1.6modifying compensable losses due to harmful substances; modifying invasive
1.7species provisions; modifying state parks and trails provisions; modifying
1.8requirements for fire training; modifying auxiliary forest provisions; modifying
1.9recreational vehicle provisions; providing for all-terrain vehicle safety training
1.10indication on drivers' licenses and identification cards; modifying and providing
1.11for certain fees; creating and modifying certain accounts; providing for and
1.12modifying certain grants; modifying disposition of certain revenue; modifying
1.13certain permit provisions; providing for condemnation of certain school trust
1.14lands; modifying Water Law; providing for certain enforcement delay; modifying
1.15personal flotation device provisions; regulating wake surfing; modifying game
1.16and fish laws; modifying Metropolitan Area Water Supply Advisory Committee
1.17and specifying duties; providing for Minnesota Pollution Control Agency
1.18Citizens' Board; prohibiting sale of certain personal care products containing
1.19synthetic plastic microbeads; requiring reports; requiring rulemaking;amending
1.20Minnesota Statutes 2014, sections 16A.531, subdivision 1a; 16C.073, subdivision
1.212; 84.415, subdivision 7; 84.788, subdivision 5, by adding a subdivision; 84.82,
1.22subdivision 6; 84.84; 84.92, subdivisions 8, 9, 10; 84.922, subdivision 4;
1.2384.925, subdivision 5; 84.9256, subdivision 1; 84.928, subdivision 1; 84D.01,
1.24subdivisions 13, 15, 17, 18, by adding a subdivision; 84D.03, subdivision 3;
1.2584D.06; 84D.10, subdivision 3; 84D.11, subdivision 1; 84D.12, subdivisions 1,
1.263; 84D.13, subdivision 5; 84D.15, subdivision 3; 85.015, subdivision 28, by
1.27adding a subdivision; 85.054, subdivision 12; 85.32, subdivision 1; 86B.313,
1.28subdivisions 1, 4; 86B.315; 86B.401, subdivision 3; 88.17, subdivision 3;
1.2988.49, subdivisions 3, 4, 5, 6, 7, 8, 9, 11; 88.491, subdivision 2; 88.50; 88.51,
1.30subdivisions 1, 3; 88.52, subdivisions 2, 3, 4, 5, 6; 88.523; 88.53, subdivisions
1.311, 2; 88.6435, subdivision 4; 90.14; 90.193; 94.10, subdivision 2; 94.16,
1.32subdivisions 2, 3; 97A.045, subdivision 11; 97A.057, subdivision 1; 97A.435,
1.33subdivision 4; 97A.465, by adding a subdivision; 97B.063; 97B.081, subdivision
1.343; 97B.085, subdivision 2; 97B.301, by adding a subdivision; 97B.668; 97C.005,
1.35subdivision 1, by adding a subdivision; 97C.301, by adding a subdivision;
1.3697C.345, by adding a subdivision; 97C.501, subdivision 2; 103B.101, by adding
1.37a subdivision; 103B.3355; 103F.612, subdivision 2; 103G.005, by adding a
1.38subdivision; 103G.222, subdivisions 1, 3; 103G.2242, subdivisions 1, 2, 3, 4,
1.3912, 14; 103G.2251; 103G.245, subdivision 2; 103G.271, subdivisions 3, 5, 6a;
1.40103G.287, subdivisions 1, 2; 103G.291, subdivision 3; 103G.301, subdivision
1.415a; 115.03, by adding a subdivision; 115.073; 115.55, subdivisions 1, 3; 115.56,
1.42subdivision 2; 115A.03, subdivision 25a; 115A.551, subdivision 2a; 115A.557,
1.43subdivision 2; 115A.93, subdivision 1; 115B.34, subdivision 2; 115C.05; 116.02;
2.1116.03, subdivision 1; 116.07, subdivisions 4d, 4j, 7, by adding a subdivision;
2.2116D.04, by adding a subdivision; 144.12, by adding a subdivision; 171.07,
2.3by adding a subdivision; 282.011, subdivision 3; 446A.073, subdivisions 1,
2.43, 4; 473.1565; Laws 2010, chapter 215, article 3, section 3, subdivision 6, as
2.5amended; Laws 2014, chapter 312, article 12, section 6, subdivision 5; proposing
2.6coding for new law in Minnesota Statutes, chapters 84; 84D; 85; 92; 97A;
2.797B; 103B; 103G; 114C; 115; 115A; 325E; repealing Minnesota Statutes 2014,
2.8sections 84.68; 86B.13, subdivisions 2, 4; 88.47; 88.48; 88.49, subdivisions
2.91, 2, 10; 88.491, subdivision 1; 88.51, subdivision 2; 97A.475, subdivision
2.1025; 97B.905, subdivision 3; 116.02, subdivisions 7, 8, 10; 282.013; 477A.19;
2.11Minnesota Rules, part 6264.0400, subparts 27, 28.
2.12May 17, 2015
2.13The Honorable Kurt L. Daudt
2.14Speaker of the House of Representatives
2.15The Honorable Sandra L. Pappas
2.16President of the Senate
2.17We, the undersigned conferees for H. F. No. 846 report that we have agreed upon the
2.18items in dispute and recommend as follows:
2.19That the Senate recede from its amendment and that H. F. No. 846 be further
2.20amended as follows:
2.21Delete everything after the enacting clause and insert:

2.22"ARTICLE 1
2.23AGRICULTURE APPROPRIATIONS

2.24
Section 1. AGRICULTURE APPROPRIATIONS
2.25The sums shown in the columns marked "Appropriations" are appropriated to the
2.26agencies and for the purposes specified in this article. The appropriations are from the
2.27general fund, or another named fund, and are available for the fiscal years indicated
2.28for each purpose. The figures "2016" and "2017" used in this article mean that the
2.29appropriations listed under them are available for the fiscal year ending June 30, 2016, or
2.30June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal
2.31year 2017. "The biennium" is fiscal years 2016 and 2017.
2.32
APPROPRIATIONS
2.33
Available for the Year
2.34
Ending June 30
2.35
2016
2017

2.36
Sec. 2. DEPARTMENT OF AGRICULTURE
2.37
Subdivision 1.Total Appropriation
$
41,510,000
$
45,512,000
2.38
Appropriations by Fund
2.39
2016
2017
2.40
General
40,932,000
44,934,000
3.1
Remediation
388,000
388,000
3.2
Agricultural
190,000
190,000
3.3The amounts that may be spent for each
3.4purpose are specified in the following
3.5subdivisions.
3.6
Subd. 2.Protection Services
16,452,000
16,402,000
3.7
Appropriations by Fund
3.8
2016
2017
3.9
General
15,874,000
15,824,000
3.10
Agricultural
190,000
190,000
3.11
Remediation
388,000
388,000
3.12$25,000 the first year and $25,000 the second
3.13year are to develop and maintain cottage
3.14food license exemption outreach and training
3.15materials.
3.16$75,000 the first year is for the commissioner,
3.17in consultation with the Northeast Regional
3.18Corrections Center and the United Food
3.19and Commercial Workers, to study and
3.20provide recommendations for upgrading the
3.21existing processing facility on the campus of
3.22the Northeast Regional Corrections Center
3.23into a USDA-certified food processing
3.24facility. The commissioner shall report these
3.25recommendations to the chairs of the house
3.26of representatives and senate committees
3.27with jurisdiction over agriculture finance by
3.28March 15, 2016.
3.29$75,000 the second year is for a coordinator
3.30for the correctional facility vocational
3.31training pilot program.
3.32$388,000 the first year and $388,000 the
3.33second year are from the remediation fund
4.1for administrative funding for the voluntary
4.2cleanup program.
4.3$225,000 the first year and $175,000
4.4the second year are for compensation
4.5for destroyed or crippled animals under
4.6Minnesota Statutes, section 3.737. This
4.7appropriation may be spent to compensate
4.8for animals that were destroyed or crippled
4.9during fiscal years 2014 and 2015. If the
4.10amount in the first year is insufficient, the
4.11amount in the second year is available in the
4.12first year.
4.13$125,000 the first year and $125,000 the
4.14second year are for compensation for crop
4.15damage under Minnesota Statutes, section
4.163.7371. If the amount in the first year is
4.17insufficient, the amount in the second year is
4.18available in the first year.
4.19If the commissioner determines that claims
4.20made under Minnesota Statutes, section
4.213.737 or 3.7371, are unusually high, amounts
4.22appropriated for either program may be
4.23transferred to the appropriation for the other
4.24program.
4.25$70,000 the first year and $70,000 the second
4.26year are for additional cannery inspections.
4.27$100,000 the first year and $100,000 the
4.28second year are for increased oversight of
4.29delegated local health boards.
4.30$100,000 the first year and $100,000 the
4.31second year are to decrease the turnaround
4.32time for retail food handler plan reviews.
4.33$1,024,000 the first year and $1,024,000 the
4.34second year are to streamline the retail food
5.1safety regulatory and licensing experience
5.2for regulated businesses and to decrease the
5.3inspection delinquency rate.
5.4$1,350,000 the first year and $1,350,000 the
5.5second year are for additional inspections of
5.6food manufacturers and wholesalers.
5.7$150,000 the first year and $150,000 the
5.8second year are for additional funding for
5.9dairy inspection services.
5.10$150,000 the first year and $150,000 the
5.11second year are for additional funding for
5.12laboratory services operations.
5.13$250,000 the first year and $250,000
5.14the second year are for additional meat
5.15inspection services, including inspections
5.16provided under the correctional facility
5.17vocational training pilot program.
5.18Notwithstanding Minnesota Statutes, section
5.1918B.05, $90,000 the first year and $90,000
5.20the second year are from the pesticide
5.21regulatory account in the agricultural fund
5.22for an increase in the operating budget for
5.23the Laboratory Services Division.
5.24$100,000 the first year and $100,000 the
5.25second year are from the pesticide regulatory
5.26account in the agricultural fund to update
5.27and modify applicator education and training
5.28materials.
5.29
5.30
Subd. 3.Agricultural Marketing and
Development
3,973,000
3,873,000
5.31The commissioner may provide one-stop
5.32access for farmers in need of information or
5.33assistance to obtain or renew licenses, meet
6.1state regulatory requirements, or resolve
6.2disputes with state agencies.
6.3The commissioner must provide outreach
6.4to urban farmers regarding the department's
6.5financial and technical assistance programs
6.6and must assist urban farmers in applying for
6.7assistance.
6.8$100,000 the first year is to (1) enhance the
6.9commissioner's efforts to identify existing
6.10and emerging opportunities for Minnesota's
6.11agricultural producers and processors to
6.12export their products to Cuba, consistent with
6.13federal law, and (2) effectively communicate
6.14these opportunities to the producers and
6.15processors.
6.16$186,000 the first year and $186,000 the
6.17second year are for transfer to the Minnesota
6.18grown account and may be used as grants
6.19for Minnesota grown promotion under
6.20Minnesota Statutes, section 17.102. Grants
6.21may be made for one year. Notwithstanding
6.22Minnesota Statutes, section 16A.28, the
6.23appropriations encumbered under contract
6.24on or before June 30, 2017, for Minnesota
6.25grown grants in this paragraph are available
6.26until June 30, 2019.
6.27$634,000 the first year and $634,000 the
6.28second year are for continuation of the dairy
6.29development and profitability enhancement
6.30and dairy business planning grant programs
6.31established under Laws 1997, chapter
6.32216, section 7, subdivision 2, and Laws
6.332001, First Special Session chapter 2,
6.34section 9, subdivision 2. The commissioner
6.35may allocate the available sums among
7.1permissible activities, including efforts to
7.2improve the quality of milk produced in the
7.3state, in the proportions that the commissioner
7.4deems most beneficial to Minnesota's dairy
7.5farmers. The commissioner must submit
7.6a detailed accomplishment report and
7.7a work plan detailing future plans for,
7.8and anticipated accomplishments from,
7.9expenditures under this program to the
7.10chairs and ranking minority members of the
7.11legislative committees with jurisdiction over
7.12agriculture policy and finance on or before
7.13the start of each fiscal year. If significant
7.14changes are made to the plans in the course
7.15of the year, the commissioner must notify the
7.16chairs and ranking minority members.
7.17The commissioner may use funds
7.18appropriated in this subdivision for annual
7.19cost-share payments to resident farmers
7.20or entities that sell, process, or package
7.21agricultural products in this state for the costs
7.22of organic certification. The commissioner
7.23may allocate these funds for assistance for
7.24persons transitioning from conventional to
7.25organic agriculture.
7.26
7.27
Subd. 4.Agriculture, Bioenergy, and
Bioproduct Advancement
15,018,000
18,985,000
7.28$4,483,000 the first year and $8,500,000 the
7.29second year are for transfer to the agriculture
7.30research, education, extension, and
7.31technology transfer account under Minnesota
7.32Statutes, section 41A.14, subdivision 3. The
7.33transfer in this paragraph includes money for
7.34plant breeders at the University of Minnesota
7.35for wild rice, potatoes, and grapes. Of these
7.36amounts, at least $600,000 each year is for
8.1agriculture rapid response under Minnesota
8.2Statutes, section 41A.14, subdivision 1,
8.3clause (2). Of the amount appropriated in
8.4this paragraph, $1,000,000 each year is
8.5for transfer to the Board of Regents of the
8.6University of Minnesota for research to
8.7determine (1) what is causing avian influenza,
8.8(2) why some fowl are more susceptible,
8.9and (3) prevention measures that can be
8.10taken. Of the amount appropriated in this
8.11paragraph, $2,000,000 each year is for grants
8.12to the Minnesota Agriculture Education
8.13Leadership Council to enhance agricultural
8.14education with priority given to Farm
8.15Business Management challenge grants.
8.16To the extent practicable, funds expended
8.17under Minnesota Statutes, section 41A.14,
8.18subdivision 1, clauses (1) and (2), must
8.19supplement and not supplant existing sources
8.20and levels of funding.
8.21$10,235,000 the first year and $10,235,000
8.22the second year are for the agricultural
8.23growth, research, and innovation program
8.24in Minnesota Statutes, section 41A.12. No
8.25later than February 1, 2016, and February
8.261, 2017, the commissioner must report to
8.27the legislative committees with jurisdiction
8.28over agriculture policy and finance regarding
8.29the commissioner's accomplishments
8.30and anticipated accomplishments in
8.31the following areas: facilitating the
8.32start-up, modernization, or expansion of
8.33livestock operations including beginning
8.34and transitioning livestock operations;
8.35developing new markets for Minnesota
8.36farmers by providing more fruits, vegetables,
9.1meat, grain, and dairy for Minnesota school
9.2children; assisting value-added agricultural
9.3businesses to begin or expand, access new
9.4markets, or diversify products; developing
9.5urban agriculture; facilitating the start-up,
9.6modernization, or expansion of other
9.7beginning and transitioning farms including
9.8loans under Minnesota Statutes, section
9.941B.056; sustainable agriculture on farm
9.10research and demonstration; development or
9.11expansion of food hubs and other alternative
9.12community-based food distribution systems;
9.13and research on bioenergy, biobased content,
9.14or biobased formulated products and other
9.15renewable energy development. The
9.16commissioner may use up to 4.5 percent
9.17of this appropriation for costs incurred to
9.18administer the program. Any unencumbered
9.19balance does not cancel at the end of the first
9.20year and is available for the second year.
9.21Notwithstanding Minnesota Statutes, section
9.2216A.28, the appropriations encumbered
9.23under contract on or before June 30, 2017, for
9.24agricultural growth, research, and innovation
9.25grants are available until June 30, 2019.
9.26The commissioner may use funds
9.27appropriated for the agricultural growth,
9.28research, and innovation program as provided
9.29in this paragraph. The commissioner may
9.30award grants to owners of Minnesota
9.31facilities producing bioenergy, biobased
9.32content, or a biobased formulated product;
9.33to organizations that provide for on-station,
9.34on-farm field scale research and outreach to
9.35develop and test the agronomic and economic
9.36requirements of diverse strands of prairie
10.1plants and other perennials for bioenergy
10.2systems; or to certain nongovernmental
10.3entities. For the purposes of this paragraph,
10.4"bioenergy" includes transportation fuels
10.5derived from cellulosic material, as well as
10.6the generation of energy for commercial heat,
10.7industrial process heat, or electrical power
10.8from cellulosic materials via gasification or
10.9other processes. Grants are limited to 50
10.10percent of the cost of research, technical
10.11assistance, or equipment related to bioenergy,
10.12biobased content, or biobased formulated
10.13product production or $500,000, whichever
10.14is less. Grants to nongovernmental entities
10.15for the development of business plans and
10.16structures related to community ownership
10.17of eligible bioenergy facilities together may
10.18not exceed $150,000. The commissioner
10.19shall make a good-faith effort to select
10.20projects that have merit and, when taken
10.21together, represent a variety of bioenergy
10.22technologies, biomass feedstocks, and
10.23geographic regions of the state. Projects
10.24must have a qualified engineer provide
10.25certification on the technology and fuel
10.26source. Grantees must provide reports at the
10.27request of the commissioner.
10.28Of the amount appropriated for the
10.29agricultural growth, research, and innovation
10.30program in this subdivision, $1,000,000 the
10.31first year and $1,000,000 the second year
10.32are for distribution in equal amounts to each
10.33of the state's county fairs to preserve and
10.34promote Minnesota agriculture.
10.35Of the amount appropriated for the
10.36agricultural growth, research, and innovation
11.1program in this subdivision, $500,000 in
11.2fiscal year 2016 and $1,500,000 in fiscal
11.3year 2017 are for incentive payments
11.4under Minnesota Statutes, sections 41A.16,
11.541A.17, and 41A.18. If the appropriation
11.6exceeds the total amount for which all
11.7producers are eligible in a fiscal year, the
11.8balance of the appropriation is available
11.9to the commissioner for the agricultural
11.10growth, research, and innovation program.
11.11Notwithstanding Minnesota Statutes,
11.12section 16A.28, the first year appropriation
11.13is available until June 30, 2017, and the
11.14second year appropriation is available until
11.15June 30, 2018. The commissioner may use
11.16up to 4.5 percent of the appropriation for
11.17administration of the incentive payment
11.18programs.
11.19Of the amount appropriated for the
11.20agricultural growth, research, and innovation
11.21program in this subdivision, $250,000 the first
11.22year is for grants to communities to develop
11.23or expand food hubs and other alternative
11.24community-based food distribution
11.25systems. Of this amount, $50,000 is for
11.26the commissioner to consult with existing
11.27food hubs, alternative community-based
11.28food distribution systems, and University
11.29of Minnesota Extension to identify best
11.30practices for use by other Minnesota
11.31communities. No later than December 15,
11.322015, the commissioner must report to the
11.33legislative committees with jurisdiction over
11.34agriculture and health regarding the status of
11.35emerging alternative community-based food
11.36distribution systems in the state along with
12.1recommendations to eliminate any barriers to
12.2success. This is a onetime appropriation.
12.3$250,000 the first year and $250,000 the
12.4second year are for grants that enable
12.5retail petroleum dispensers to dispense
12.6biofuels to the public in accordance with the
12.7biofuel replacement goals established under
12.8Minnesota Statutes, section 239.7911. A
12.9retail petroleum dispenser selling petroleum
12.10for use in spark ignition engines for vehicle
12.11model years after 2000 is eligible for grant
12.12money under this paragraph if the retail
12.13petroleum dispenser has no more than 15
12.14retail petroleum dispensing sites and each
12.15site is located in Minnesota. The grant
12.16money received under this paragraph must
12.17be used for the installation of appropriate
12.18technology that uses fuel dispensing
12.19equipment appropriate for at least one fuel
12.20dispensing site to dispense gasoline that is
12.21blended with 15 percent of agriculturally
12.22derived, denatured ethanol, by volume, and
12.23appropriate technical assistance related to
12.24the installation. A grant award must not
12.25exceed 85 percent of the cost of the technical
12.26assistance and appropriate technology,
12.27including remetering of and retrofits for
12.28retail petroleum dispensers and replacement
12.29of petroleum dispenser projects. The
12.30commissioner may use up to $35,000 of this
12.31appropriation for administrative expenses.
12.32The commissioner shall cooperate with
12.33biofuel stakeholders in the implementation
12.34of the grant program. The commissioner
12.35must report to the legislative committees
12.36with jurisdiction over agriculture policy and
13.1finance by February 1 each year, detailing
13.2the number of grants awarded under this
13.3paragraph and the projected effect of the grant
13.4program on meeting the biofuel replacement
13.5goals under Minnesota Statutes, section
13.6239.7911. These are onetime appropriations.
13.7$25,000 the first year and $25,000 the second
13.8year are for grants to the Southern Minnesota
13.9Initiative Foundation to promote local foods
13.10through an annual event that raises public
13.11awareness of local foods and connects local
13.12food producers and processors with potential
13.13buyers.
13.14
13.15
Subd. 5.Administration and Financial
Assistance
6,067,000
6,252,000
13.16$150,000 the first year and $150,000 the
13.17second year are for grants to the Center for
13.18Rural Policy and Development.
13.19The base for the farm-to-foodshelf program
13.20in fiscal years 2018 and 2019 is $1,100,000
13.21each year.
13.22$25,000 the first year is for the livestock
13.23industry study.
13.24$47,000 the first year and $47,000 the second
13.25year are for the Northern Crops Institute.
13.26These appropriations may be spent to
13.27purchase equipment.
13.28$18,000 the first year and $18,000 the
13.29second year are for grants to the Minnesota
13.30Livestock Breeders Association.
13.31$235,000 the first year and $235,000 the
13.32second year are for grants to the Minnesota
13.33Agricultural Education and Leadership
14.1Council for programs of the council under
14.2Minnesota Statutes, chapter 41D.
14.3$474,000 the first year and $474,000 the
14.4second year are for payments to county and
14.5district agricultural societies and associations
14.6under Minnesota Statutes, section 38.02,
14.7subdivision 1. Aid payments to county and
14.8district agricultural societies and associations
14.9shall be disbursed no later than July 15 of
14.10each year. These payments are the amount of
14.11aid from the state for an annual fair held in
14.12the previous calendar year.
14.13$1,000 the first year and $1,000 the second
14.14year are for grants to the Minnesota State
14.15Poultry Association.
14.16$108,000 the first year and $108,000 the
14.17second year are for annual grants to the
14.18Minnesota Turf Seed Council for basic
14.19and applied research on: (1) the improved
14.20production of forage and turf seed related to
14.21new and improved varieties; and (2) native
14.22plants, including plant breeding, nutrient
14.23management, pest management, disease
14.24management, yield, and viability. The grant
14.25recipient may subcontract with a qualified
14.26third party for some or all of the basic or
14.27applied research.
14.28$550,000 the first year and $550,000 the
14.29second year are for grants to Second Harvest
14.30Heartland on behalf of Minnesota's six
14.31Second Harvest food banks for the purchase
14.32of milk for distribution to Minnesota's food
14.33shelves and other charitable organizations
14.34that are eligible to receive food from the food
14.35banks. Milk purchased under the grants must
15.1be acquired from Minnesota milk processors
15.2and based on low-cost bids. The milk must be
15.3allocated to each Second Harvest food bank
15.4serving Minnesota according to the formula
15.5used in the distribution of United States
15.6Department of Agriculture commodities
15.7under The Emergency Food Assistance
15.8Program (TEFAP). Second Harvest
15.9Heartland must submit quarterly reports
15.10to the commissioner on forms prescribed
15.11by the commissioner. The reports must
15.12include, but are not limited to, information
15.13on the expenditure of funds, the amount
15.14of milk purchased, and the organizations
15.15to which the milk was distributed. Second
15.16Harvest Heartland may enter into contracts
15.17or agreements with food banks for shared
15.18funding or reimbursement of the direct
15.19purchase of milk. Each food bank receiving
15.20money from this appropriation may use up to
15.21two percent of the grant for administrative
15.22expenses.
15.23$113,000 the first year and $113,000 the
15.24second year are for transfer to the Board of
15.25Trustees of the Minnesota State Colleges
15.26and Universities for statewide mental health
15.27counseling support to farm families and
15.28business operators. South Central College
15.29shall serve as the fiscal agent.
15.30$17,000 the first year and $17,000 the
15.31second year are for grants to the Minnesota
15.32Horticultural Society.

15.33
Sec. 3. BOARD OF ANIMAL HEALTH
$
5,318,000
$
5,384,000

16.1
16.2
Sec. 4. AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE
$
3,643,000
$
3,643,000

16.3    Sec. 5. AVIAN INFLUENZA RESPONSE ACTIVITIES; APPROPRIATIONS.
16.4(a) $3,619,000 is appropriated from the general fund in fiscal year 2016 to the
16.5commissioner of agriculture for avian influenza emergency response activities. The
16.6commissioner may use money appropriated under this paragraph to purchase necessary
16.7euthanasia and composting equipment and to reimburse costs incurred by local units of
16.8government directly related to avian influenza emergency response activities that are not
16.9eligible for federal reimbursement. This appropriation is available the day following final
16.10enactment until June 30, 2017.
16.11(b) $1,853,000 is appropriated from the general fund in fiscal year 2016 to the
16.12Board of Animal Health for avian influenza emergency response activities. The Board
16.13may use money appropriated under this paragraph to purchase necessary euthanasia and
16.14composting equipment. This appropriation is available the day following final enactment
16.15until June 30, 2017.
16.16(c) $103,000 is appropriated from the general fund in fiscal year 2016 to the
16.17commissioner of health for avian influenza emergency response activities. This
16.18appropriation is available the day following final enactment until June 30, 2017.
16.19(d) $350,000 is appropriated from the general fund in fiscal year 2016 to the
16.20commissioner of natural resources for sampling wild animals to detect and monitor the
16.21avian influenza virus. This appropriation may also be used to conduct serology sampling,
16.22in consultation with the Board of Animal Health and the University of Minnesota Pomeroy
16.23Chair in Avian Health, from birds within a control zone and outside of a control zone.
16.24This appropriation is available the day following final enactment until June 30, 2017.
16.25(e) $544,000 is appropriated from the general fund in fiscal year 2016 to the
16.26commissioner of public safety to operate the State Emergency Operation Center in
16.27coordination with the statewide avian influenza response activities. Appropriations
16.28under this paragraph may also be used to support a staff person at the state's agricultural
16.29incident command post in Willmar. This appropriation is available the day following final
16.30enactment until June 30, 2017.
16.31(f) The commissioner of management and budget may transfer unexpended balances
16.32from the appropriations in this section to any state agency for operating expenses related
16.33to avian influenza emergency response activities. The commissioner of management and
16.34budget must report each transfer to the chairs and ranking minority members of the senate
16.35Committee on Finance and the house of representatives Committee on Ways and Means.

17.1    Sec. 6. RURAL FINANCE AUTHORITY; APPROPRIATION.
17.2$10,000,000 is appropriated in fiscal year 2016 from the general fund to the
17.3commissioner of agriculture for transfer to the rural finance authority revolving loan
17.4account under Minnesota Statutes, section 41B.06, for the purposes of disaster recovery
17.5loans under Minnesota Statutes, section 41B.047. This appropriation is available the day
17.6following final enactment until June 30, 2017.

17.7    Sec. 7. AVIAN INFLUENZA; FEDERAL FUNDS APPROPRIATION AND
17.8REPORTING.
17.9All federal money received in fiscal years 2015 through 2017 by the Board of Animal
17.10Health or the commissioner of agriculture, health, natural resources, or public safety to
17.11address avian influenza is appropriated in the fiscal year when it is received. Before
17.12spending federal funds appropriated in this section, the commissioner of management and
17.13budget shall report the anticipated federal funds appropriated under this section and their
17.14intended purpose to the Legislative Advisory Commission, consistent with the urgent
17.15federal funds request procedure under Minnesota Statutes, section 3.3005, subdivision
17.164. By January 15, 2018, the commissioner of management and budget shall report the
17.17actual federal funds received and appropriated under this section and their actual use
17.18to the Legislative Advisory Commission.

17.19    Sec. 8. EFFECTIVE DATE.
17.20Sections 5 to 7 are effective the day following final enactment.

17.21ARTICLE 2
17.22AGRICULTURE POLICY

17.23    Section 1. Minnesota Statutes 2014, section 3.737, is amended by adding a subdivision
17.24to read:
17.25    Subd. 6. Federal reimbursement. The commissioner must pursue federal
17.26reimbursement for any compensation payment issued under this section while:
17.27(1) the United States Fish and Wildlife Service lists the Minnesota population of gray
17.28wolves as endangered and threatened wildlife under the federal Endangered Species Act; or
17.29(2) the federal government otherwise prohibits livestock producers from protecting
17.30their livestock from wolf depredation.

17.31    Sec. 2. Minnesota Statutes 2014, section 13.643, subdivision 1, is amended to read:
18.1    Subdivision 1. Department of Agriculture data. (a) Loan and grant applicant
18.2data. The following data on applicants, collected by the Department of Agriculture in its
18.3sustainable agriculture revolving loan and grant programs program under sections 17.115
18.4
and section 17.116, are private or nonpublic: nonfarm income; credit history; insurance
18.5coverage; machinery and equipment list; financial information; and credit information
18.6requests.
18.7(b) Farm advocate data. The following data supplied by farmer clients to
18.8Minnesota farm advocates and to the Department of Agriculture are private data on
18.9individuals: financial history, including listings of assets and debts, and personal and
18.10emotional status information.

18.11    Sec. 3. Minnesota Statutes 2014, section 18B.01, subdivision 28, is amended to read:
18.12    Subd. 28. Structural pest. "Structural pest" means a an invertebrate pest, other
18.13than a plant, or commensal rodent in, on, under, or near a structure such as a residential
18.14or commercial building.

18.15    Sec. 4. Minnesota Statutes 2014, section 18B.01, subdivision 29, is amended to read:
18.16    Subd. 29. Structural pest control. "Structural pest control" means the control of
18.17any structural pest through the use of a device, a procedure, or application of pesticides or
18.18through other means in or around a building or other structures, including trucks, boxcars,
18.19ships, aircraft, docks, and fumigation vaults, and the business activity related to use of a
18.20device, a procedure, or application of a pesticide.

18.21    Sec. 5. Minnesota Statutes 2014, section 18B.05, subdivision 1, is amended to read:
18.22    Subdivision 1. Establishment. A pesticide regulatory account is established in the
18.23agricultural fund. Fees, assessments, and penalties collected under this chapter must
18.24be deposited in the agricultural fund and credited to the pesticide regulatory account.
18.25Money in the account, including interest, is appropriated to the commissioner for the
18.26administration and enforcement of this chapter and up to $20,000 per fiscal year may also
18.27be used by the commissioner for purposes of section 18H.14, paragraph (e).

18.28    Sec. 6. Minnesota Statutes 2014, section 18B.32, subdivision 1, is amended to read:
18.29    Subdivision 1. Requirement. (a) A person may not engage in structural pest
18.30control applications:
18.31(1) for hire without a structural pest control license; and
19.1(2) as a sole proprietorship, company, partnership, or corporation unless the person
19.2is or employs a licensed master in structural pest control operations.
19.3(b) A structural pest control licensee must have a valid license identification card
19.4when applying to purchase a restricted use pesticide or apply pesticides for hire and must
19.5display it upon demand by an authorized representative of the commissioner or a law
19.6enforcement officer. The license identification card must contain information required by
19.7the commissioner.
19.8(c) Notwithstanding the licensing requirements of this subdivision, a person may
19.9control the following nuisance or economically damaging wild animals, by trapping,
19.10without a structural pest control license:
19.11(1) fur-bearing animals, as defined in section 97A.015, with a valid trapping license
19.12or special permit from the commissioner of natural resources; and
19.13(2) skunks, woodchucks, gophers, porcupines, coyotes, moles, and weasels.

19.14    Sec. 7. Minnesota Statutes 2014, section 18B.33, subdivision 1, is amended to read:
19.15    Subdivision 1. Requirement. (a) A person may not apply a pesticide for hire
19.16without a commercial applicator license for the appropriate use categories or a structural
19.17pest control license.
19.18    (b) A commercial applicator licensee must have a valid license identification card
19.19when applying to purchase a restricted use pesticide or apply pesticides for hire and must
19.20display it upon demand by an authorized representative of the commissioner or a law
19.21enforcement officer. The commissioner shall prescribe the information required on the
19.22license identification card.

19.23    Sec. 8. Minnesota Statutes 2014, section 18B.34, subdivision 1, is amended to read:
19.24    Subdivision 1. Requirement. (a) Except for a licensed commercial applicator,
19.25certified private applicator, or licensed structural pest control applicator, a person,
19.26including a government employee, may not purchase or use a restricted use pesticide in
19.27performance of official duties without having a noncommercial applicator license for an
19.28appropriate use category.
19.29    (b) A licensee must have a valid license identification card when applying pesticides
19.30and must display it upon demand by an authorized representative of the commissioner
19.31or a law enforcement officer. The license identification card must contain information
19.32required by the commissioner.

19.33    Sec. 9. Minnesota Statutes 2014, section 18C.425, subdivision 6, is amended to read:
20.1    Subd. 6. Payment of inspection fee. (a) The person who registers and distributes in
20.2the state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411
20.3shall pay the inspection fee to the commissioner.
20.4(b) The person licensed under section 18C.415 who distributes a fertilizer to a person
20.5not required to be so licensed shall pay the inspection fee to the commissioner, except as
20.6exempted under section 18C.421, subdivision 1, paragraph (b).
20.7(c) The person responsible for payment of the inspection fees for fertilizers, soil
20.8amendments, or plant amendments sold and used in this state must pay an inspection fee
20.9of 30 39 cents per ton, and until June 30, 2019, an additional 40 cents per ton, of fertilizer,
20.10soil amendment, and plant amendment sold or distributed in this state, with a minimum
20.11of $10 on all tonnage reports. Notwithstanding section 18C.131, the commissioner
20.12must deposit all revenue from the additional 40 cent per ton fee in the agricultural
20.13fertilizer research and education account in section 18C.80. Products sold or distributed to
20.14manufacturers or exchanged between them are exempt from the inspection fee imposed by
20.15this subdivision if the products are used exclusively for manufacturing purposes.
20.16(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant
20.17amendment, or soil amendment distribution amounts and inspection fees paid for a period
20.18of three years.

20.19    Sec. 10. Minnesota Statutes 2014, section 18C.70, subdivision 2, is amended to read:
20.20    Subd. 2. Powers and duties. The council must review applications and select
20.21projects to receive agricultural fertilizer research and education program grants, as
20.22authorized in section 18C.71. The council must establish a program to provide grants to
20.23research, education, and technology transfer projects related to agricultural fertilizer, soil
20.24amendments, and plant amendments. For the purpose of this section, "fertilizer" includes
20.25soil amendments and plant amendments, but does not include vegetable or animal manures
20.26that are not manipulated. The commissioner is responsible for all fiscal and administrative
20.27duties in the first year and may use up to eight percent of program revenue to offset costs
20.28incurred. No later than October 1, 2007, the commissioner must provide the council with
20.29an estimate of the annual costs the commissioner would incur in administering the program.

20.30    Sec. 11. [18C.80] AGRICULTURAL FERTILIZER RESEARCH AND
20.31EDUCATION ACCOUNT.
20.32    Subdivision 1. Account; appropriation. An agricultural fertilizer research
20.33and education account is established in the agricultural fund. Money in the account,
20.34including interest earned, is appropriated to the commissioner for grants determined by the
21.1Minnesota Agricultural Fertilizer Research and Education Council under section 18C.71.
21.2The commissioner may use up to $80,000 each fiscal year for direct costs incurred to
21.3provide fiscal and administrative support to the council as required under section 18C.70,
21.4subdivision 2. The commissioner may also recover associated indirect costs from the
21.5account as required under section 16A.127.
21.6    Subd. 2. Expiration. This section expires June 30, 2020.

21.7    Sec. 12. Minnesota Statutes 2014, section 18G.10, subdivision 3, is amended to read:
21.8    Subd. 3. Cooperative agreements. The commissioner may enter into cooperative
21.9agreements with federal and state agencies for administration of the export certification
21.10program. An exporter of plants or plant products desiring to originate shipments from
21.11Minnesota to a foreign country requiring a phytosanitary certificate or export certificate
21.12must submit an application to the commissioner.

21.13    Sec. 13. Minnesota Statutes 2014, section 18G.10, subdivision 4, is amended to read:
21.14    Subd. 4. Phytosanitary and export certificates. An exporter of plants or plant
21.15products desiring to originate shipments from Minnesota to a foreign country requiring
21.16a phytosanitary certificate or export certificate must submit an application to the
21.17commissioner. Application for phytosanitary certificates or export certificates must be
21.18made on forms provided or approved by the commissioner. The commissioner shall may
21.19conduct inspections of plants, plant products, or facilities for persons that have applied for
21.20or intend to apply for a phytosanitary certificate or export certificate from the commissioner.
21.21Inspections must include one or more of the following as requested or required:
21.22(1) an inspection of the plants or plant products intended for export under a
21.23phytosanitary certificate or export certificate;
21.24(2) field inspections of growing plants to determine presence or absence of plant
21.25diseases, if necessary;
21.26(3) laboratory diagnosis for presence or absence of plant diseases, if necessary;
21.27(4) observation and evaluation of procedures and facilities utilized in handling
21.28plants and plant products, if necessary; and
21.29(5) review of United States Department of Agriculture, Federal Grain Inspection
21.30Service Official Export Grain Inspection Certificate logs.
21.31The commissioner may issue a phytosanitary certificate or export certificate if the
21.32plants or plant products satisfactorily meet the requirements of the importing foreign
21.33country and the United States Department of Agriculture requirements. The requirements
21.34of the destination countries must be met by the applicant.

22.1    Sec. 14. Minnesota Statutes 2014, section 18G.10, subdivision 5, is amended to read:
22.2    Subd. 5. Certificate fees. (a) The commissioner shall assess the fees in paragraphs
22.3(b) to (f) fees sufficient to recover all costs for the inspection, service, and work performed
22.4in carrying out the issuance of a phytosanitary certificate or export certificate. The
22.5inspection fee must be based on mileage and inspection time.
22.6(b) Mileage charge: current United States Internal Revenue Service mileage rate.
22.7(c) Inspection time: $50 per hour minimum or fee necessary to cover department
22.8costs. Inspection time includes the driving time to and from the location in addition to
22.9the time spent conducting the inspection.
22.10(d) (b) If laboratory analysis or other technical analysis is required to issue a
22.11certificate, the commissioner must set and collect the fee to recover this additional cost.
22.12(e) (c) The certificate fee for product value greater than $250: is $75 or a fee amount,
22.13not to exceed $300, that is sufficient to recover all processing costs for each phytosanitary
22.14or export certificate issued for any single shipment valued at more than $250 in addition to
22.15any mileage or inspection time charges that are assessed.
22.16(f) Certificate fee for product value less than $250: $25 for each phytosanitary or
22.17export certificate issued for any single shipment valued at less than $250 in addition to
22.18any mileage or inspection time charges that are assessed.
22.19(g) (d) For services provided for in subdivision 7 that are goods and services
22.20provided for the direct and primary use of a private individual, business, or other entity,
22.21the commissioner must set and collect the fees to cover the cost of the services provided.

22.22    Sec. 15. Minnesota Statutes 2014, section 18H.02, subdivision 20, is amended to read:
22.23    Subd. 20. Nursery stock. "Nursery stock" means a plant intended for planting or
22.24propagation, including, but not limited to, trees, shrubs, vines, perennials, biennials, grafts,
22.25cuttings, and buds that may be sold for propagation, whether cultivated or wild, and all
22.26viable parts of these plants. Nursery stock does not include:
22.27(1) field and forage crops or sod;
22.28(2) the seeds of grasses, cereal grains, vegetable crops, and flowers;
22.29(3) vegetable plants, bulbs, or tubers;
22.30(4) cut flowers, unless stems or other portions are intended for propagation;
22.31(5) annuals; or
22.32(6) Christmas trees.

22.33    Sec. 16. Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision
22.34to read:
23.1    Subd. 32a. Sod. "Sod" means the upper portion of soil that contains the roots of
23.2grasses and the living grass plants.

23.3    Sec. 17. Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision
23.4to read:
23.5    Subd. 35. Tropical plant. "Tropical plant" means a plant that has a United States
23.6Department of Agriculture hardiness zone designation of zone 6 or greater, or an annual
23.7minimum hardiness temperature of -9 degrees Fahrenheit.

23.8    Sec. 18. Minnesota Statutes 2014, section 18H.06, subdivision 2, is amended to read:
23.9    Subd. 2. Occasional sales. (a) An individual may offer nursery stock for sale and be
23.10exempt from the requirement to obtain a nursery stock dealer certificate if:
23.11(1) the gross sales of all nursery stock in a calendar year do not exceed $2,000;
23.12(2) all nursery stock sold or distributed by the individual is intended for planting
23.13in Minnesota;
23.14(3) all nursery stock purchased or procured for resale or distribution was grown in
23.15Minnesota and has been certified by the commissioner; and
23.16(4) the individual conducts sales or distributions of nursery stock on ten or fewer
23.17days in a calendar year.
23.18(b) The commissioner may prescribe the conditions of the exempt nursery sales under
23.19this subdivision and may conduct routine inspections of the nursery stock offered for sale.

23.20    Sec. 19. Minnesota Statutes 2014, section 18H.07, is amended to read:
23.2118H.07 FEE SCHEDULE.
23.22    Subdivision 1. Establishment of fees. The commissioner shall establish fees
23.23sufficient to allow for the administration and enforcement of this chapter and rules adopted
23.24under this chapter, including the portion of general support costs and statewide indirect
23.25costs of the agency attributable to that function, with a reserve sufficient for up to six
23.26months. The commissioner shall review the fee schedule annually in consultation with
23.27the Minnesota Nursery and Landscape Advisory Committee. For the certificate year
23.28beginning January 1, 2006, the fees are as described in this section.
23.29    Subd. 2. Nursery stock grower certificate. (a) A nursery stock grower must
23.30pay an annual fee based on the area of all acreage on which nursery stock is grown for
23.31certification as follows:
23.32(1) less than one-half acre, $150;
23.33(2) from one-half acre to two acres, $200;
24.1(3) over two acres up to five acres, $300;
24.2(4) over five acres up to ten acres, $350;
24.3(5) over ten acres up to 20 acres, $500;
24.4(6) over 20 acres up to 40 acres, $650;
24.5(7) over 40 acres up to 50 acres, $800;
24.6(8) over 50 acres up to 200 acres, $1,100;
24.7(9) over 200 acres up to 500 acres, $1,500; and
24.8(10) over 500 acres, $1,500 plus $2 for each additional acre.
24.9(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due
24.10must be charged for each month, or portion thereof, that the fee is delinquent up to a
24.11maximum of 30 percent for any application for renewal not postmarked by December 31
24.12of the current year.
24.13(c) A nursery stock grower found operating without a valid nursery stock grower
24.14certificate cannot offer for sale or sell nursery stock until: (1) payment is received by the
24.15commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee
24.16owed; and (2) a new certificate is issued to the nursery stock grower by the commissioner.
24.17    Subd. 3. Nursery stock dealer certificate. (a) A nursery stock dealer must pay an
24.18annual fee based on the dealer's gross sales of certified nursery stock per location during
24.19the most recent certificate year. A certificate applicant operating for the first time must pay
24.20the minimum fee. The fees per sales location are:
24.21(1) gross sales up to $5,000, $150;
24.22(2) gross sales over $5,000 up to $20,000, $175;
24.23(3) gross sales over $20,000 up to $50,000, $300;
24.24(4) gross sales over $50,000 up to $75,000, $425;
24.25(5) gross sales over $75,000 up to $100,000, $550;
24.26(6) gross sales over $100,000 up to $200,000, $675; and
24.27(7) gross sales over $200,000, $800.
24.28(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due
24.29must be charged for each month, or portion thereof, that the fee is delinquent up to a
24.30maximum of 30 percent for any application for renewal not postmarked by December 31
24.31of the current year.
24.32(c) A nursery stock dealer found operating without a valid nursery stock dealer
24.33certificate cannot offer for sale or sell nursery stock until: (1) payment is received by the
24.34commissioner for (i) the certificate fee due, and (ii) a penalty equal to the certificate fee
24.35owed; and (2) a new certificate is issued to the nursery stock dealer by the commissioner.
25.1    Subd. 4. Reinspection; additional or optional inspection fees. If a reinspection is
25.2required or an additional inspection is needed or requested a fee must be assessed based
25.3on mileage and inspection time as follows:
25.4(1) mileage must be charged at the current United States Internal Revenue Service
25.5reimbursement rate; and
25.6(2) inspection time must be charged at the rate of $50 per hour a rate sufficient to
25.7recover all inspection costs, including the driving time to and from the location in addition
25.8to the time spent conducting the inspection.

25.9    Sec. 20. Minnesota Statutes 2014, section 18H.17, is amended to read:
25.1018H.17 NURSERY AND PHYTOSANITARY ACCOUNT.
25.11A nursery and phytosanitary account is established in the state treasury. The fees
25.12and penalties collected under this chapter and interest attributable to money in the account
25.13must be deposited in the state treasury and credited to the nursery and phytosanitary
25.14account in the agricultural fund. Money in the account, including interest earned, is
25.15annually appropriated to the commissioner for the administration and enforcement for
25.16this chapter. The commissioner may spend no more than $20,000 from the account each
25.17fiscal year for purposes of section 18H.14, paragraph (e).

25.18    Sec. 21. Minnesota Statutes 2014, section 18J.01, is amended to read:
25.1918J.01 DEFINITIONS.
25.20(a) The definitions in sections 18G.02, 18H.02, 18K.02, 27.01, 223.16, 231.01,
25.21and 232.21 apply to this chapter.
25.22(b) For purposes of this chapter, "associated rules" means rules adopted under this
25.23chapter, chapter 18G, 18H, 18K, 27, 223, 231, or 232, or sections 21.80 to 21.92.
25.24EFFECTIVE DATE.This section is effective the day following final enactment.

25.25    Sec. 22. Minnesota Statutes 2014, section 18J.02, is amended to read:
25.2618J.02 DUTIES OF COMMISSIONER.
25.27The commissioner shall administer and enforce this chapter, chapters 18G, 18H,
25.2818K, 27, 223, 231, and 232; sections 21.80 to 21.92; and associated rules.
25.29EFFECTIVE DATE.This section is effective the day following final enactment.

25.30    Sec. 23. Minnesota Statutes 2014, section 18J.03, is amended to read:
26.118J.03 CIVIL LIABILITY.
26.2A person regulated by this chapter, chapter 18G, 18H, 18K, 27, 223, 231, or 232,
26.3or sections 21.80 to 21.92, is civilly liable for any violation of one of those statutes or
26.4associated rules by the person's employee or agent.
26.5EFFECTIVE DATE.This section is effective the day following final enactment.

26.6    Sec. 24. Minnesota Statutes 2014, section 18J.04, subdivision 1, is amended to read:
26.7    Subdivision 1. Access and entry. The commissioner, upon presentation of official
26.8department credentials, must be granted immediate access at reasonable times to sites
26.9where a person manufactures, distributes, uses, handles, disposes of, stores, or transports
26.10seeds, plants, grain, household goods, general merchandise, produce, or other living or
26.11nonliving products or other objects regulated under chapter 18G, 18H, 18K, 27, 223, 231,
26.12or 232; sections 21.80 to 21.92; or associated rules.
26.13EFFECTIVE DATE.This section is effective the day following final enactment.

26.14    Sec. 25. Minnesota Statutes 2014, section 18J.04, subdivision 2, is amended to read:
26.15    Subd. 2. Purpose of entry. (a) The commissioner may enter sites for:
26.16(1) inspection of inventory and equipment for the manufacture, storage, handling,
26.17distribution, disposal, or any other process regulated under chapter 18G, 18H, 18K, 27,
26.18223, 231, or 232; sections 21.80 to 21.92; or associated rules;
26.19(2) sampling of sites, seeds, plants, products, grain, household goods, general
26.20merchandise, produce, or other living or nonliving objects that are manufactured, stored,
26.21distributed, handled, or disposed of at those sites and regulated under chapter 18G, 18H,
26.2218K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules;
26.23(3) inspection of records related to the manufacture, distribution, storage, handling,
26.24or disposal of seeds, plants, products, grain, household goods, general merchandise,
26.25produce, or other living or nonliving objects regulated under chapter 18G, 18H, 18K, 27,
26.26223, 231, or 232; sections 21.80 to 21.92; or associated rules;
26.27(4) investigating compliance with chapter 18G, 18H, 18K, 27, 223, 231, or 232;
26.28sections 21.80 to 21.92; or associated rules; or
26.29(5) other purposes necessary to implement chapter 18G, 18H, 18K, 27, 223, 231, or
26.30232; sections 21.80 to 21.92; or associated rules.
26.31(b) The commissioner may enter any public or private premises during or after
26.32regular business hours without notice of inspection when a suspected violation of chapter
27.118G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules may
27.2threaten public health or the environment.
27.3EFFECTIVE DATE.This section is effective the day following final enactment.

27.4    Sec. 26. Minnesota Statutes 2014, section 18J.04, subdivision 3, is amended to read:
27.5    Subd. 3. Notice of inspection samples and analyses. (a) The commissioner shall
27.6provide the owner, operator, or agent in charge with a receipt describing any samples
27.7obtained. If requested, the commissioner shall split any samples obtained and provide
27.8them to the owner, operator, or agent in charge. If an analysis is made of the samples,
27.9a copy of the results of the analysis must be furnished to the owner, operator, or agent
27.10in charge within 30 days after an analysis has been performed. If an analysis is not
27.11performed, the commissioner must notify the owner, operator, or agent in charge within 30
27.12days of the decision not to perform the analysis.
27.13(b) The sampling and analysis must be done according to methods provided for
27.14under applicable provisions of chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections
27.1521.80 to 21.92; or associated rules. In cases not covered by those sections and methods
27.16or in cases where methods are available in which improved applicability has been
27.17demonstrated the commissioner may adopt appropriate methods from other sources.
27.18EFFECTIVE DATE.This section is effective the day following final enactment.

27.19    Sec. 27. Minnesota Statutes 2014, section 18J.04, subdivision 4, is amended to read:
27.20    Subd. 4. Inspection requests by others. (a) A person who believes that a violation
27.21of chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated
27.22rules has occurred may request an inspection by giving notice to the commissioner of the
27.23violation. The notice must be in writing, state with reasonable particularity the grounds
27.24for the notice, and be signed by the person making the request.
27.25(b) If after receiving a notice of violation the commissioner reasonably believes that
27.26a violation has occurred, the commissioner shall make a special inspection in accordance
27.27with the provisions of this section as soon as practicable, to determine if a violation has
27.28occurred.
27.29(c) An inspection conducted pursuant to a notice under this subdivision may cover
27.30an entire site and is not limited to the portion of the site specified in the notice. If the
27.31commissioner determines that reasonable grounds to believe that a violation occurred
27.32do not exist, the commissioner must notify the person making the request in writing of
27.33the determination.
28.1EFFECTIVE DATE.This section is effective the day following final enactment.

28.2    Sec. 28. Minnesota Statutes 2014, section 18J.05, subdivision 1, is amended to read:
28.3    Subdivision 1. Enforcement required. (a) A violation of chapter 18G, 18H, 18K, 27,
28.4223, 231, or 232; sections 21.80 to 21.92; or an associated rule is a violation of this chapter.
28.5(b) Upon the request of the commissioner, county attorneys, sheriffs, and other
28.6officers having authority in the enforcement of the general criminal laws must take action
28.7to the extent of their authority necessary or proper for the enforcement of chapter 18G,
28.818H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules or valid
28.9orders, standards, stipulations, and agreements of the commissioner.
28.10EFFECTIVE DATE.This section is effective the day following final enactment.

28.11    Sec. 29. Minnesota Statutes 2014, section 18J.05, subdivision 2, is amended to read:
28.12    Subd. 2. Commissioner's discretion. If minor violations of chapter 18G, 18H,
28.1318K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules occur or the
28.14commissioner believes the public interest will be best served by a suitable notice of
28.15warning in writing, this section does not require the commissioner to:
28.16(1) report the violation for prosecution;
28.17(2) institute seizure proceedings; or
28.18(3) issue a withdrawal from distribution, stop-sale, or other order.
28.19EFFECTIVE DATE.This section is effective the day following final enactment.

28.20    Sec. 30. Minnesota Statutes 2014, section 18J.05, subdivision 6, is amended to read:
28.21    Subd. 6. Agent for service of process. All persons licensed, permitted, registered,
28.22or certified under chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or
28.23associated rules must appoint the commissioner as the agent upon whom all legal process
28.24may be served and service upon the commissioner is deemed to be service on the licensee,
28.25permittee, registrant, or certified person.
28.26EFFECTIVE DATE.This section is effective the day following final enactment.

28.27    Sec. 31. Minnesota Statutes 2014, section 18J.06, is amended to read:
28.2818J.06 FALSE STATEMENT OR RECORD.
28.29A person must not knowingly make or offer a false statement, record, or other
28.30information as part of:
29.1(1) an application for registration, license, certification, or permit under chapter 18G,
29.218H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules;
29.3(2) records or reports required under chapter 18G, 18H, 18K, 27, 223, 231, or 232;
29.4sections 21.80 to 21.92; or associated rules; or
29.5(3) an investigation of a violation of chapter 18G, 18H, 18K, 27, 223, 231, or 232;
29.6sections 21.80 to 21.92; or associated rules.
29.7EFFECTIVE DATE.This section is effective the day following final enactment.

29.8    Sec. 32. Minnesota Statutes 2014, section 18J.07, subdivision 3, is amended to read:
29.9    Subd. 3. Cancellation of registration, permit, license, certification. The
29.10commissioner may cancel or revoke a registration, permit, license, or certification
29.11provided for under chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92;
29.12or associated rules or refuse to register, permit, license, or certify under provisions of
29.13chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules
29.14if the registrant, permittee, licensee, or certified person has used fraudulent or deceptive
29.15practices in the evasion or attempted evasion of a provision of chapter 18G, 18H, 18K, 27,
29.16223, 231, or 232; sections 21.80 to 21.92; or associated rules.
29.17EFFECTIVE DATE.This section is effective the day following final enactment.

29.18    Sec. 33. Minnesota Statutes 2014, section 18J.07, subdivision 4, is amended to read:
29.19    Subd. 4. Service of order or notice. (a) If a person is not available for service of an
29.20order, the commissioner may attach the order to the facility, site, seed or seed container,
29.21plant or other living or nonliving object regulated under chapter 18G, 18H, 18K, 27, 223,
29.22231, or 232; sections 21.80 to 21.92; or associated rules and notify the owner, custodian,
29.23other responsible party, or registrant.
29.24(b) The seed, seed container, plant, or other living or nonliving object regulated
29.25under chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated
29.26rules may not be sold, used, tampered with, or removed until released under conditions
29.27specified by the commissioner, by an administrative law judge, or by a court.
29.28EFFECTIVE DATE.This section is effective the day following final enactment.

29.29    Sec. 34. Minnesota Statutes 2014, section 18J.07, subdivision 5, is amended to read:
29.30    Subd. 5. Unsatisfied judgments. (a) An applicant for a license, permit, registration,
29.31or certification under provisions of this chapter, chapter 18G, 18H, 18K, 27, 223, 231, or
29.32232; sections 21.80 to 21.92; or associated rules may not allow a final judgment against
30.1the applicant for damages arising from a violation of those statutes or rules to remain
30.2unsatisfied for a period of more than 30 days.
30.3(b) Failure to satisfy, within 30 days, a final judgment resulting from a violation of this
30.4chapter results in automatic suspension of the license, permit, registration, or certification.
30.5EFFECTIVE DATE.This section is effective the day following final enactment.

30.6    Sec. 35. Minnesota Statutes 2014, section 18J.09, is amended to read:
30.718J.09 CREDITING OF PENALTIES, FEES, AND COSTS.
30.8Penalties, cost reimbursements, fees, and other money collected under this chapter
30.9must be deposited into the state treasury and credited to the appropriate nursery and
30.10phytosanitary, industrial hemp, or seed account.
30.11EFFECTIVE DATE.This section is effective the day following final enactment.

30.12    Sec. 36. Minnesota Statutes 2014, section 18J.11, subdivision 1, is amended to read:
30.13    Subdivision 1. General violation. Except as provided in subdivisions 2 and, 3, and
30.144, a person is guilty of a misdemeanor if the person violates this chapter or an order,
30.15standard, stipulation, agreement, or schedule of compliance of the commissioner.
30.16EFFECTIVE DATE.This section is effective the day following final enactment.

30.17    Sec. 37. Minnesota Statutes 2014, section 18J.11, is amended by adding a subdivision
30.18to read:
30.19    Subd. 4. Controlled substance offenses. Prosecution under this section does not
30.20preclude prosecution under chapter 152.
30.21EFFECTIVE DATE.This section is effective the day following final enactment.

30.22    Sec. 38. [18K.01] SHORT TITLE.
30.23This chapter may be referred to as the "Industrial Hemp Development Act."
30.24EFFECTIVE DATE.This section is effective the day following final enactment.

30.25    Sec. 39. [18K.02] DEFINITIONS.
30.26    Subdivision 1. Scope. The definitions in this section apply to this chapter.
30.27    Subd. 2. Commissioner. "Commissioner" means the commissioner of agriculture.
31.1    Subd. 3. Industrial hemp. "Industrial hemp" means the plant Cannabis sativa L.
31.2and any part of the plant, whether growing or not, with a delta-9 tetrahydrocannabinol
31.3concentration of not more than 0.3 percent on a dry weight basis. Industrial hemp is not
31.4marijuana as defined in section 152.01, subdivision 9.
31.5    Subd. 4. Marijuana. "Marijuana" has the meaning given in section 152.01,
31.6subdivision 9.
31.7EFFECTIVE DATE.This section is effective the day following final enactment.

31.8    Sec. 40. [18K.03] AGRICULTURAL CROP; POSSESSION AUTHORIZED.
31.9Industrial hemp is an agricultural crop in this state. A person may possess, transport,
31.10process, sell, or buy industrial hemp that is grown pursuant to this chapter.
31.11EFFECTIVE DATE.This section is effective the day following final enactment.

31.12    Sec. 41. [18K.04] LICENSING.
31.13    Subdivision 1. Requirement; issuance; presumption. (a) A person must obtain a
31.14license from the commissioner before growing industrial hemp for commercial purposes.
31.15A person must apply to the commissioner in the form prescribed by the commissioner and
31.16must pay the annual registration and inspection fee established by the commissioner in
31.17accordance with section 16A.1285, subdivision 2. The license application must include
31.18the name and address of the applicant and the legal description of the land area or areas
31.19where industrial hemp will be grown by the applicant.
31.20(b) When an applicant has paid the fee and completed the application process to the
31.21satisfaction of the commissioner, the commissioner must issue a license which is valid
31.22until December 31 of the year of application.
31.23(c) A person licensed under this section is presumed to be growing industrial hemp
31.24for commercial purposes.
31.25    Subd. 2. Background check; data classification. The commissioner must require
31.26each first-time applicant for a license to submit to a background investigation conducted
31.27by the Bureau of Criminal Apprehension as a condition of licensure. As part of the
31.28background investigation, the Bureau of Criminal Apprehension must conduct criminal
31.29history checks of Minnesota records and is authorized to exchange fingerprints with the
31.30United States Department of Justice, Federal Bureau of Investigation for the purpose of a
31.31criminal background check of the national files. The cost of the investigation must be paid
31.32by the applicant. Criminal history records provided to the commissioner under this section
31.33must be treated as private data on individuals, as defined in section 13.02, subdivision 12.
32.1    Subd. 3. Federal requirements. The applicant must demonstrate to the satisfaction
32.2of the commissioner that the applicant has complied with all applicable federal
32.3requirements pertaining to the production, distribution, and sale of industrial hemp.
32.4EFFECTIVE DATE.This section is effective the day following final enactment.

32.5    Sec. 42. [18K.05] ANNUAL REPORT; SALES NOTIFICATION.
32.6(a) Annually, a licensee must file with the commissioner:
32.7(1) documentation demonstrating to the commissioner's satisfaction that the seeds
32.8planted by the licensee are of a type and variety that contain no more than three-tenths of
32.9one percent delta-9 tetrahydrocannabinol; and
32.10(2) a copy of any contract to grow industrial hemp.
32.11(b) Within 30 days, a licensee must notify the commissioner of each sale or
32.12distribution of industrial hemp grown by the licensee including, but not limited to, the
32.13name and address of the person receiving the industrial hemp and the amount of industrial
32.14hemp sold or distributed.
32.15EFFECTIVE DATE.This section is effective the day following final enactment.

32.16    Sec. 43. [18K.06] RULEMAKING.
32.17(a) The commissioner shall adopt rules governing the production, testing, and
32.18licensing of industrial hemp.
32.19(b) Rules adopted under paragraph (a) must include, but not be limited to, provisions
32.20governing:
32.21(1) the supervision and inspection of industrial hemp during its growth and harvest;
32.22(2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;
32.23(3) the use of background checks results required under section 18K.04 to approve
32.24or deny a license application; and
32.25(4) any other provision or procedure necessary to carry out the purposes of this
32.26chapter.
32.27(c) Rules issued under this section must be consistent with federal law regarding
32.28the production, distribution, and sale of industrial hemp.
32.29EFFECTIVE DATE.This section is effective the day after the federal government
32.30authorizes the commercial production of industrial hemp in this country.

32.31    Sec. 44. [18K.07] FEES.
33.1Fees collected under this chapter must be credited to the industrial hemp account,
33.2which is hereby established in the agricultural fund in the state treasury. Interest earned
33.3in the account accrues to the account. Funds in the industrial hemp account are annually
33.4appropriated to the commissioner to implement and enforce this chapter.
33.5EFFECTIVE DATE.This section is effective the day following final enactment.

33.6    Sec. 45. [18K.08] DEFENSE FOR POSSESSION OF MARIJUANA.
33.7It is an affirmative defense to a prosecution for the possession of marijuana under
33.8chapter 152 if:
33.9(1) the defendant possesses industrial hemp grown pursuant to this chapter; or
33.10(2) the defendant has a valid controlled substance registration from the United States
33.11Department of Justice, Drug Enforcement Administration, if required under federal law.
33.12EFFECTIVE DATE.This section is effective the day following final enactment.

33.13    Sec. 46. [18K.09] PILOT PROGRAM; OTHER RESEARCH AUTHORIZED.
33.14    Subdivision 1. Authorized activity. The commissioner may grow or cultivate
33.15industrial hemp pursuant to a pilot program administered by the commissioner to study
33.16the growth, cultivation, or marketing of industrial hemp. The commissioner may: (1)
33.17authorize institutions of higher education to grow or cultivate industrial hemp as part
33.18of the commissioner's pilot program or as is necessary to perform other agricultural,
33.19renewable energy, or academic research; and (2) contract with public or private entities for
33.20testing or other activities authorized under this subdivision. Authorized activity under this
33.21section may include collecting seed from wild hemp sources.
33.22    Subd. 2. Site registration. Before growing or cultivating industrial hemp pursuant
33.23to this section, each site must be registered with and certified by the commissioner. A
33.24person must register each site annually in the form prescribed by the commissioner and
33.25must pay the annual registration and certification fee established by the commissioner in
33.26accordance with section 16A.1285, subdivision 2.
33.27    Subd. 3. Rulemaking. The commissioner may adopt rules that govern the pilot
33.28program pursuant to this section and Public Law 113-79.
33.29EFFECTIVE DATE.This section is effective the day following final enactment.

33.30    Sec. 47. Minnesota Statutes 2014, section 21.89, subdivision 2, is amended to read:
33.31    Subd. 2. Permits; issuance and revocation. The commissioner shall issue a permit
33.32to the initial labeler of agricultural, vegetable, flower, and wildflower seeds which are sold
34.1for use in Minnesota and which conform to and are labeled under sections 21.80 to 21.92.
34.2The categories of permits are as follows:
34.3(1) for initial labelers who sell 50,000 pounds or less of agricultural seed each
34.4calendar year, an annual permit issued for a fee established in section 21.891, subdivision
34.52
, paragraph (b);
34.6(2) for initial labelers who sell vegetable, flower, and wildflower seed packed for
34.7use in home gardens or household plantings, and initial labelers who sell native grasses
34.8and wildflower seed in commercial or agricultural quantities, an annual permit issued for
34.9a fee established in section 21.891, subdivision 2, paragraph (c), based upon the gross
34.10sales from the previous year; and
34.11(3) for initial labelers who sell more than 50,000 pounds of agricultural seed
34.12each calendar year, a permanent permit issued for a fee established in section 21.891,
34.13subdivision 2
, paragraph (d).
34.14In addition, the person shall furnish to the commissioner an itemized statement of all
34.15seeds sold in Minnesota for the periods established by the commissioner. This statement
34.16shall be delivered, along with the payment of the fee, based upon the amount and type
34.17of seed sold, to the commissioner no later than 30 days after the end of each reporting
34.18period. Any person holding a permit shall show as part of the analysis labels or invoices
34.19on all agricultural, vegetable, flower, wildflower, tree, or shrub seeds all information the
34.20commissioner requires. The commissioner may revoke any permit in the event of failure
34.21to comply with applicable laws and rules.

34.22    Sec. 48. Minnesota Statutes 2014, section 21.891, subdivision 2, is amended to read:
34.23    Subd. 2. Seed fee permits. (a) An initial labeler who wishes to sell seed in
34.24Minnesota must comply with section 21.89, subdivisions 1 and 2, and the procedures in
34.25this subdivision. Each initial labeler who wishes to sell seed in Minnesota must apply to
34.26the commissioner to obtain a permit. The application must contain the name and address of
34.27the applicant, the application date, and the name and title of the applicant's contact person.
34.28(b) The application for a seed permit covered by section 21.89, subdivision 2, clause
34.29(1), must be accompanied by an application fee of $50 $75.
34.30(c) The application for a seed permit covered by section 21.89, subdivision 2, clause
34.31(2), must be accompanied by an application fee based on the level of annual gross sales
34.32as follows:
34.33(1) for gross sales of $0 to $25,000, the annual permit fee is $50 $75;
34.34(2) for gross sales of $25,001 to $50,000, the annual permit fee is $100 $150;
34.35(3) for gross sales of $50,001 to $100,000, the annual permit fee is $200 $300;
35.1(4) for gross sales of $100,001 to $250,000, the annual permit fee is $500 $750;
35.2(5) for gross sales of $250,001 to $500,000, the annual permit fee is $1,000 $1,500;
35.3and
35.4(6) for gross sales of $500,001 and above to $1,000,000, the annual permit fee is
35.5$2,000 $3,000; and
35.6(7) for gross sales of $1,000,001 and above, the annual permit fee is $4,500.
35.7(d) The application for a seed permit covered by section 21.89, subdivision 2, clause
35.8(3), must be accompanied by an application fee of $50 $75. Initial labelers holding seed
35.9fee permits covered under this paragraph need not apply for a new permit or pay the
35.10application fee. Under this permit category, the fees for the following kinds of agricultural
35.11seed sold either in bulk or containers are:
35.12(1) oats, wheat, and barley, 6.3 9 cents per hundredweight;
35.13(2) rye, field beans, soybeans, buckwheat, and flax, 8.4 12 cents per hundredweight;
35.14(3) field corn, 29.4 17 cents per hundredweight 80,000 seed unit;
35.15(4) forage, lawn and turf grasses, and legumes, 49 69 cents per hundredweight;
35.16(5) sunflower, $1.40 $1.96 per hundredweight;
35.17(6) sugar beet, $3.29 12 cents per hundredweight 100,000 seed unit; and
35.18(7) soybeans, 7.5 cents per 140,000 seed unit; and
35.19(7) (8) for any agricultural seed not listed in clauses (1) to (6) (7), the fee for the crop
35.20most closely resembling it in normal planting rate applies.
35.21(e) If, for reasons beyond the control and knowledge of the initial labeler, seed is
35.22shipped into Minnesota by a person other than the initial labeler, the responsibility for the
35.23seed fees are transferred to the shipper. An application for a transfer of this responsibility
35.24must be made to the commissioner. Upon approval by the commissioner of the transfer,
35.25the shipper is responsible for payment of the seed permit fees.
35.26(f) Seed permit fees may be included in the cost of the seed either as a hidden cost or
35.27as a line item cost on each invoice for seed sold. To identify the fee on an invoice, the
35.28words "Minnesota seed permit fees" must be used.
35.29(g) All seed fee permit holders must file semiannual reports with the commissioner,
35.30even if no seed was sold during the reporting period. Each semiannual report must be
35.31submitted within 30 days of the end of each reporting period. The reporting periods are
35.32October 1 to March 31 and April 1 to September 30 of each year or July 1 to December
35.3331 and January 1 to June 30 of each year. Permit holders may change their reporting
35.34periods with the approval of the commissioner.
36.1(h) The holder of a seed fee permit must pay fees on all seed for which the permit
36.2holder is the initial labeler and which are covered by sections 21.80 to 21.92 and sold
36.3during the reporting period.
36.4(i) If a seed fee permit holder fails to submit a semiannual report and pay the seed
36.5fee within 30 days after the end of each reporting period, the commissioner shall assess a
36.6penalty of $100 or eight percent, calculated on an annual basis, of the fee due, whichever
36.7is greater, but no more than $500 for each late semiannual report. A $15 penalty must be
36.8charged when the semiannual report is late, even if no fee is due for the reporting period.
36.9Seed fee permits may be revoked for failure to comply with the applicable provisions of
36.10this paragraph or the Minnesota seed law.

36.11    Sec. 49. Minnesota Statutes 2014, section 21.891, subdivision 5, is amended to read:
36.12    Subd. 5. Brand name registration fee. The fee is $25 $50 for each variety
36.13registered for sale by brand name.

36.14    Sec. 50. Minnesota Statutes 2014, section 25.341, subdivision 2, is amended to read:
36.15    Subd. 2. Application; fee; term. A person who is required to have a commercial
36.16feed license shall submit an application on a form provided or approved by the
36.17commissioner accompanied by a fee of $25 $75 paid to the commissioner for each
36.18location. A license is not transferable from one person to another, from one ownership to
36.19another, or from one location to another. The license year is the calendar year. A license
36.20expires on December 31 of the year for which it is issued, except that a license is valid
36.21through January 31 of the next year or until the issuance of the renewal license, whichever
36.22comes first, if the licensee has filed a renewal application with the commissioner on or
36.23before December 31 of the year for which the current license was issued. Any person who
36.24is required to have, but fails to obtain a license or a licensee who fails to comply with
36.25license renewal requirements, shall pay a $50 $100 late fee in addition to the license fee.

36.26    Sec. 51. Minnesota Statutes 2014, section 25.39, subdivision 1, is amended to read:
36.27    Subdivision 1. Amount of fee. (a) An inspection fee at the rate of 16 cents per ton
36.28must be paid to the commissioner on commercial feeds distributed in this state by the
36.29person who first distributes the commercial feed, except that:
36.30(1) no fee need be paid on:
36.31(i) a commercial feed if the payment has been made by a previous distributor; or
36.32(ii) customer formula feeds if the inspection fee is paid on the commercial feeds
36.33which are used as ingredients; or
37.1(2) a Minnesota feed distributor who can substantiate that greater than 50 percent
37.2of the distribution of commercial feed is to purchasers outside the state may purchase
37.3commercial feeds without payment of the inspection fee under a tonnage fee exemption
37.4permit issued by the commissioner. Such location specific permits shall be issued on a
37.5calendar year basis to commercial feed distributors who submit a $100 nonrefundable
37.6application fee and comply with rules adopted by the commissioner relative to record
37.7keeping, tonnage of commercial feed distributed in Minnesota, total of all commercial
37.8feed tonnage distributed, and all other information which the commissioner may require
37.9so as to ensure that proper inspection fee payment has been made.
37.10(b) In the case of pet food distributed in the state only in packages of ten pounds
37.11or less, a listing of each product and a current label for each product must be submitted
37.12annually on forms provided by the commissioner and accompanied by an annual fee of
37.13$50 $100 for each product in lieu of the inspection fee. This annual fee is due by July 1.
37.14The inspection fee required by paragraph (a) applies to pet food distributed in packages
37.15exceeding ten pounds.
37.16(c) In the case of specialty pet food distributed in the state only in packages of
37.17ten pounds or less, a listing of each product and a current label for each product must
37.18be submitted annually on forms provided by the commissioner and accompanied by an
37.19annual fee of $25 $100 for each product in lieu of the inspection fee. This annual fee is
37.20due by July 1. The inspection fee required by paragraph (a) applies to specialty pet food
37.21distributed in packages exceeding ten pounds.
37.22(d) The minimum inspection fee is $10 $75 per annual reporting period.

37.23    Sec. 52. Minnesota Statutes 2014, section 25.39, subdivision 1a, is amended to read:
37.24    Subd. 1a. Containers of ten pounds or less. A distributor who is subject to the
37.25annual fee specified in subdivision 1, paragraph (b) or (c), shall do the following:
37.26(1) before beginning distribution, file with the commissioner a listing of pet and
37.27specialty pet foods to be distributed in the state only in containers of ten pounds or less,
37.28on forms provided by the commissioner. The listing under this clause must be renewed
37.29annually before July 1 and is the basis for the payment of the annual fee. New products
37.30added during the year must be submitted to the commissioner as a supplement to the
37.31annual listing before distribution; and
37.32(2) if the annual renewal of the listing is not received before July 1 or if an unlisted
37.33product is distributed, pay a late filing fee of $10 $100 per product in addition to the
37.34normal charge for the listing. The late filing fee under this clause is in addition to any
37.35other penalty under this chapter.

38.1    Sec. 53. [28A.152] COTTAGE FOODS EXEMPTION.
38.2    Subdivision 1. Licensing provisions applicability. (a) The licensing provisions of
38.3sections 28A.01 to 28A.16 do not apply to the following:
38.4(1) an individual who prepares and sells food that is not potentially hazardous food,
38.5as defined in Minnesota Rules, part 4626.0020, subpart 62, if the following requirements
38.6are met:
38.7(i) the prepared food offered for sale under this clause is labeled to accurately reflect
38.8the name and address of the individual preparing and selling the food, the date on which
38.9the food was prepared, and the ingredients and any possible allergens; and
38.10(ii) the individual displays at the point of sale a clearly legible sign or placard stating:
38.11"These products are homemade and not subject to state inspection."; and
38.12(2) an individual who prepares and sells home-processed and home-canned food
38.13products if the following requirements are met:
38.14(i) the products are pickles, vegetables, or fruits having an equilibrium pH value of
38.154.6 or lower;
38.16(ii) the products are home-processed and home-canned in Minnesota;
38.17(iii) the individual displays at the point of sale a clearly legible sign or placard
38.18stating: "These canned goods are homemade and not subject to state inspection."; and
38.19(iv) each container of the product sold or offered for sale under this clause is
38.20accurately labeled to provide the name and address of the individual who processed
38.21and canned the goods, the date on which the goods were processed and canned, and
38.22ingredients and any possible allergens.
38.23(b) An individual who qualifies for an exemption under paragraph (a), clause (2), is
38.24also exempt from the provisions of sections 31.31 and 31.392.
38.25    Subd. 2. Direct sales to consumers. (a) An individual qualifying for an exemption
38.26under subdivision 1 may sell the exempt food:
38.27(1) directly to the ultimate consumer;
38.28(2) at a community event or farmers' market; or
38.29(3) directly from the individual's home to the consumer, to the extent allowed by
38.30local ordinance.
38.31(b) If an exempt food product will be delivered to the ultimate consumer upon sale
38.32of the food product, the individual who prepared the food product must be the person who
38.33delivers the food product to the ultimate consumer.
38.34(c) Food products exempt under subdivision 1, paragraph (a), clause (2), may not be
38.35sold outside of Minnesota.
39.1(d) Food products exempt under subdivision 1 may be sold over the Internet but
39.2must be delivered directly to the ultimate consumer by the individual who prepared the
39.3food product. The statement "These products are homemade and not subject to state
39.4inspection." must be displayed on the Web site that offers the exempt foods for purchase.
39.5    Subd. 3. Limitation on sales. An individual selling exempt foods under this section
39.6is limited to total sales with gross receipts of $18,000 or less in a calendar year.
39.7    Subd. 4. Registration. An individual who prepares and sells exempt food under
39.8subdivision 1 must register annually with the commissioner. The annual registration fee is
39.9$50. An individual with $5,000 or less in annual gross receipts from the sale of exempt
39.10food under this section is not required to pay the registration fee.
39.11    Subd. 5. Training. (a) An individual with gross receipts between $5,000 and
39.12$18,000 in a calendar year from the sale of exempt food under this section must complete a
39.13safe food handling training course that is approved by the commissioner before registering
39.14under subdivision 4. The training shall not exceed eight hours and must be completed
39.15every three years while the individual is registered under subdivision 4.
39.16(b) An individual with gross receipts of less than $5,000 in a calendar year from
39.17the sale of exempt food under this section must satisfactorily complete an online course
39.18and exam as approved by the commissioner before registering under subdivision 4. The
39.19commissioner shall offer the online course and exam under this paragraph at no cost to
39.20the individual.
39.21    Subd. 6. Local ordinances. This section does not preempt the application of any
39.22business licensing requirement or sanitation, public health, or zoning ordinance of a
39.23political subdivision.
39.24    Subd. 7. Account established. A cottage foods account is created as a separate
39.25account in the agricultural fund in the state treasury for depositing money received by the
39.26commissioner under this section. Money in the account, including interest, is appropriated
39.27to the commissioner for purposes of this section.

39.28    Sec. 54. Minnesota Statutes 2014, section 32.075, is amended to read:
39.2932.075 TERM OF LICENSE; TRANSFERABILITY; FEES AND PENALTIES.
39.30Every An initial license issued by the commissioner shall be for a period ending
39.31expires on the following December 31st day of December next following, and shall is not
39.32be transferable. A renewal license is valid for two years and expires on December 31 of
39.33the second year. The fee for each such an initial or renewal license shall be $50 and each
39.34renewal thereof shall be $25 and is $60. The fee shall be paid to the commissioner before
39.35any the commissioner issues an initial or renewal license or renewal thereof is issued. If a
40.1license renewal is not applied for on or before January 1 of each year, a penalty of $10 $30
40.2shall be imposed. A person who does not renew a license within one year following its
40.3December 31 expiration date, except those persons who do not renew such license while
40.4engaged in active military service, shall be required to prove competency and qualification
40.5pursuant to section 32.073, before a license is issued. The commissioner may require any
40.6other person who renews a license to prove competency and qualification in the same
40.7manner. All license fees and penalties received by the commissioner shall be paid into the
40.8state treasury deposited in the dairy services account in the agricultural fund.

40.9    Sec. 55. Minnesota Statutes 2014, section 32.105, is amended to read:
40.1032.105 MILK PROCUREMENT FEE.
40.11Each dairy plant operator within the state must pay to the commissioner on or before
40.12the 18th of each month a fee of .71 1.1 cents per hundredweight of milk purchased the
40.13previous month. If a milk producer within the state ships milk out of the state for sale, the
40.14producer must pay the fee to the commissioner unless the purchaser voluntarily pays the fee.
40.15Producers who ship milk out of state or processors must submit monthly reports as
40.16to milk purchases along with the appropriate procurement fee to the commissioner. The
40.17commissioner may have access to all relevant purchase or sale records as necessary to
40.18verify compliance with this section and may require the producer or purchaser to produce
40.19records as necessary to determine compliance.
40.20The fees collected under this section must be deposited in the dairy services account
40.21in the agricultural fund. Money in the account, including interest earned, is appropriated
40.22to the commissioner to administer this chapter.

40.23    Sec. 56. [41A.14] AGRICULTURE RESEARCH, EDUCATION, EXTENSION,
40.24AND TECHNOLOGY TRANSFER GRANT PROGRAM.
40.25    Subdivision 1. Duties; grants. The agriculture research, education, extension, and
40.26technology transfer grant program is created. The purpose of the grant program is to
40.27provide investments that will most efficiently achieve long-term agricultural productivity
40.28increases through improved infrastructure, vision, and accountability. The scope and
40.29intent of the grants, to the extent possible, shall provide for a long-term base funding
40.30that allows the research grantee to continue the functions of the research, education, and
40.31extension efforts to a practical conclusion. Priority for grants shall be given to human
40.32infrastructure. The commissioner shall provide grants for:
40.33(1) agricultural research and technology transfer needs and recipients including
40.34agricultural research and extension at the University of Minnesota, research and outreach
41.1centers, the College of Food, Agricultural and Natural Resource Sciences, the Minnesota
41.2Agricultural Experiment Station, University of Minnesota Extension Service, the
41.3University of Minnesota Veterinary School, the Veterinary Diagnostic Laboratory,
41.4the Stakman-Borlaug Center, and the Minnesota Agriculture Fertilizer Research and
41.5Education Council;
41.6(2) agriculture rapid response for plant and animal diseases and pests; and
41.7(3) agricultural education including but not limited to the Minnesota Agriculture
41.8Education Leadership Council, farm business management, mentoring programs, graduate
41.9debt forgiveness, and high school programs.
41.10    Subd. 2. Advisory panel. In awarding grants under this section, the commissioner
41.11must consult with an advisory panel consisting of the following stakeholders:
41.12(1) a representative of the College of Food, Agricultural and Natural Resource
41.13Sciences at the University of Minnesota;
41.14(2) a representative of the Minnesota State Colleges and Universities system;
41.15(3) a representative of the Minnesota Farm Bureau;
41.16(4) a representative of the Minnesota Farmers Union;
41.17(5) a person representing agriculture industry statewide;
41.18(6) a representative of each of the state commodity councils organized under section
41.1917.54 and the Minnesota Pork Board;
41.20(7) a person representing an association of primary manufacturers of forest products;
41.21(8) a person representing organic or sustainable agriculture; and
41.22(9) a person representing statewide environment and natural resource conservation
41.23organizations.
41.24    Subd. 3. Account. An agriculture research, education, extension, and technology
41.25transfer account is created in the agricultural fund in the state treasury. The account
41.26consists of money received in the form of gifts, grants, reimbursement, or appropriations
41.27from any source for any of the purposes provided in subdivision 1, and any interest or
41.28earnings of the account. Money in the account is appropriated to the commissioner of
41.29agriculture for the purposes under subdivision 1.

41.30    Sec. 57. [41A.15] DEFINITIONS.
41.31    Subdivision 1. Scope. For the purposes of sections 41A.15 to 41A.18, the terms
41.32defined in this section have the meanings given them.
41.33    Subd. 2. Advanced biofuel. "Advanced biofuel" has the meaning given in section
41.34239.051, subdivision 1a.
42.1    Subd. 3. Biomass thermal production. "Biomass thermal production" means the
42.2generation of energy for commercial heat or industrial process heat from a cellulosic
42.3material or other material composed of forestry or agricultural feedstocks for a new or
42.4expanding capacity facility or a facility that is displacing existing use of fossil fuel after
42.5the effective date of this section.
42.6    Subd. 4. Cellulosic biomass. "Cellulosic biomass" means material primarily made
42.7up of cellulose, hemicellulose, or lingnin, or a combination of those ingredients.
42.8    Subd. 5. Cellulosic sugar. "Cellulosic sugar" means sugar derived from cellulosic
42.9biomass from agricultural or forestry resources.
42.10    Subd. 6. Commissioner. "Commissioner" means the commissioner of agriculture.
42.11    Subd. 7. Cover crops. "Cover crops" means grasses, legumes, forbs, or other
42.12herbaceous plants that are known to be noninvasive and not listed as a noxious weed in
42.13Minnesota and that are either interseeded into living cash crops or planted on agricultural
42.14fields during fallow periods for seasonal cover and conservation purposes.
42.15    Subd. 8. MMbtu. "MMbtu" means 1,000,000 British thermal units.
42.16    Subd. 9. Perennial crops. "Perennial crops" means agriculturally produced plants
42.17that are known to be noninvasive and not listed as a noxious weed in Minnesota and that
42.18have a life cycle of at least three years at the location where the plants are being cultivated.
42.19Biomass from alfalfa produced in a two-year rotation shall be considered a perennial crop.
42.20    Subd. 10. Renewable chemical. "Renewable chemical" means a chemical with
42.21biobased content as defined in section 41A.105, subdivision 1a.

42.22    Sec. 58. [41A.16] ADVANCED BIOFUEL PRODUCTION INCENTIVE.
42.23    Subdivision 1. Eligibility. (a) A facility eligible for payment under this section must
42.24source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or
42.25less from the state border, raw materials may be sourced from within a 100-mile radius.
42.26Raw materials must be from agricultural or forestry sources or from solid waste. The
42.27facility must be located in Minnesota, must begin production at a specific location by June
42.2830, 2025, and must not begin operating above 95,000 MMbtu of annual biofuel production
42.29before July 1, 2015. Eligible facilities include existing companies and facilities that are
42.30adding advanced biofuel production capacity, or retrofitting existing capacity, as well as
42.31new companies and facilities. Production of conventional corn ethanol and conventional
42.32biodiesel is not eligible. Eligible advanced biofuel facilities must produce at least 95,000
42.33MMbtu a year.
42.34(b) No payments shall be made for advanced biofuel production that occurs after
42.35June 30, 2035, for those eligible biofuel producers under paragraph (a).
43.1(c) An eligible producer of advanced biofuel shall not transfer the producer's
43.2eligibility for payments under this section to an advanced biofuel facility at a different
43.3location.
43.4(d) A producer that ceases production for any reason is ineligible to receive
43.5payments under this section until the producer resumes production.
43.6(e) Renewable chemical production for which payment has been received under
43.7section 41A.17, and biomass thermal production for which payment has been received
43.8under section 41A.18, are not eligible for payment under this section.
43.9    Subd. 2. Payment amounts; limits. (a) The commissioner shall make payments
43.10to eligible producers of advanced biofuel. The amount of the payment for each eligible
43.11producer's annual production is $2.1053 per MMbtu for advanced biofuel production from
43.12cellulosic biomass, and $1.053 per MMbtu for advanced biofuel production from sugar or
43.13starch at a specific location for ten years after the start of production.
43.14(b) Total payments under this section to an eligible biofuel producer in a fiscal
43.15year may not exceed the amount necessary for 2,850,000 MMbtu of biofuel production.
43.16Total payments under this section to all eligible biofuel producers in a fiscal year may
43.17not exceed the amount necessary for 17,100,000 MMbtu of biofuel production. The
43.18commissioner shall award payments on a first-come, first-served basis within the limits of
43.19available funding.
43.20(c) For purposes of this section, an entity that holds a controlling interest in more
43.21than one advanced biofuel facility is considered a single eligible producer.
43.22    Subd. 3. Perennial and cover crops required. To be eligible for payment under
43.23this section, a producer that produces advanced biofuel from agricultural cellulosic
43.24biomass other than corn kernel fiber or biogas must derive at least the following portions
43.25of the producer's total eligible MMbtus from perennial crop or cover crop biomass:
43.26(1) ten percent during the first two years of eligible production;
43.27(2) 30 percent during the third and fourth years of eligible production; and
43.28(3) 50 percent during the fifth through tenth years of eligible production.
43.29    Subd. 4. Cellulosic forestry biomass requirements. All forestry-derived cellulosic
43.30biomass must be produced using Minnesota state biomass harvesting guidelines or the
43.31equivalent. All biomass from brushlands must be produced using Minnesota brushland
43.32harvesting biomass harvest guidelines or the equivalent. Forestry-derived cellulosic
43.33biomass that comes from land parcels greater than 160 acres must be certified by the Forest
43.34Stewardship Council, Sustainable Forestry Initiative, or American Tree Farm System.
43.35Uncertified land from parcels of 160 acres or less and federal land must be harvested by
44.1a logger who has completed training for biomass harvesting from the Minnesota logger
44.2education program or the equivalent and have a forest stewardship plan.
44.3    Subd. 5. Agricultural cellulosic biomass sourcing plan. (a) An eligible producer
44.4who utilizes agricultural cellulosic biomass must submit a responsible biomass sourcing
44.5plan for approval by the commissioner prior to applying for payments under this section.
44.6The commissioner shall make the plan publicly available. The plan must:
44.7(1) provide a detailed explanation of how agricultural cellulosic biomass will be
44.8produced and managed in a way that preserves soil quality, does not increase soil and
44.9nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts
44.10on wildlife habitat, and reduces greenhouse gas emissions;
44.11(2) include the producer's approach to verifying that biomass suppliers are following
44.12the plan;
44.13(3) discuss how new technologies and practices that are not yet commercially viable
44.14may be encouraged and adopted during the life of the facility, and how the producer will
44.15encourage continuous improvement during the life of the project;
44.16(4) include specific numeric goals and timelines for making progress;
44.17(5) require agronomic practices that result in a positive Natural Resources
44.18Conservation Service Soil Conditioning Index score for acres from which biomass from
44.19corn stover will be harvested; and
44.20(6) include biennial soil sampling to verify maintained or increased levels of soil
44.21organic matter.
44.22(b) An eligible producer who utilizes agricultural cellulosic biomass and receives
44.23payments under this section shall submit an annual report on the producer's responsible
44.24biomass sourcing plan to the commissioner by January 15 each year. The report must
44.25include data on progress made by the producer in meeting specific goals laid out in the
44.26plan. The commissioner shall make the report publicly available. The commissioner shall
44.27perform an annual review of submitted reports and may make a determination that the
44.28producer is not following the plan based on the reports submitted. The commissioner
44.29may take appropriate steps, including reducing or ceasing payments, until the producer
44.30is in compliance with the plan.
44.31    Subd. 6. Claims. (a) By the last day of October, January, April, and July, each eligible
44.32biofuel producer shall file a claim for payment for advanced biofuel production during the
44.33preceding three calendar months. An eligible biofuel producer that files a claim under
44.34this subdivision shall include a statement of the eligible biofuel producer's total advanced
44.35biofuel production in Minnesota during the quarter covered by the claim. For each claim
44.36and statement of total advanced biofuel production filed under this subdivision, the volume
45.1of advanced biofuel production must be examined by a CPA firm with a valid permit to
45.2practice under chapter 326A, in accordance with Statements on Standards for Attestation
45.3Engagements established by the American Institute of Certified Public Accountants.
45.4(b) The commissioner must issue payments by November 15, February 15, May 15,
45.5and August 15. A separate payment must be made for each claim filed.

45.6    Sec. 59. [41A.17] RENEWABLE CHEMICAL PRODUCTION INCENTIVE.
45.7    Subdivision 1. Eligibility. (a) A facility eligible for payment under this program
45.8must source at least 80 percent biobased content, as defined in section 41A.105,
45.9subdivision 1a, clause (1), from Minnesota. If a facility is sited 50 miles or less from the
45.10state border, biobased content must be sourced from within a 100-mile radius. Biobased
45.11content must be from agricultural or forestry sources or from solid waste. The facility
45.12must be located in Minnesota, must begin production at a specific location by June 30,
45.132025, and must not begin production of 3,000,000 pounds of chemicals annually before
45.14January 1, 2015. Eligible facilities include existing companies and facilities that are
45.15adding production capacity, or retrofitting existing capacity, as well as new companies and
45.16facilities. Eligible renewable chemical facilities must produce at least 3,000,000 pounds
45.17per year. Renewable chemicals produced through processes that are fully commercial
45.18before January 1, 2000, are not eligible.
45.19(b) No payments shall be made for renewable chemical production that occurs after
45.20June 30, 2035, for those eligible renewable chemical producers under paragraph (a).
45.21(c) An eligible producer of renewable chemicals shall not transfer the producer's
45.22eligibility for payments under this section to a renewable chemical facility at a different
45.23location.
45.24(d) A producer that ceases production for any reason is ineligible to receive
45.25payments under this section until the producer resumes production.
45.26(e) Advanced biofuel production for which payment has been received under section
45.2741A.16, and biomass thermal production for which payment has been received under
45.28section 41A.18, are not eligible for payment under this section.
45.29    Subd. 2. Payment amounts; bonus; limits. (a) The commissioner shall make
45.30payments to eligible producers of renewable chemicals located in the state. The amount of
45.31the payment for each producer's annual production is $0.03 per pound of sugar-derived
45.32renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of
45.33cellulosic-derived renewable chemical produced at a specific location for ten years after
45.34the start of production.
46.1(b) An eligible facility producing renewable chemicals using agricultural cellulosic
46.2biomass is eligible for a 20 percent bonus payment for each MMbtu produced from
46.3agricultural biomass that is derived from perennial crop or cover crop biomass.
46.4(c) Total payments under this section to an eligible renewable chemical producer in
46.5a fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable
46.6chemical production. Total payments under this section to all eligible renewable chemical
46.7producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of
46.8renewable chemical production. The commissioner shall award payments on a first-come,
46.9first-served basis within the limits of available funding.
46.10(d) For purposes of this section, an entity that holds a controlling interest in more
46.11than one renewable chemical production facility is considered a single eligible producer.
46.12    Subd. 3. Cellulosic biomass requirements. All forestry-derived cellulosic biomass
46.13must be produced using Minnesota state biomass harvesting guidelines or the equivalent.
46.14All cellulosic biomass from brushlands must be produced using Minnesota brushland
46.15harvesting biomass harvest guidelines or the equivalent. Forestry-derived cellulosic
46.16biomass that comes from land parcels greater than 160 acres must be certified by the Forest
46.17Stewardship Council, Sustainable Forestry Initiative, or American Tree Farm System.
46.18Uncertified land from parcels of 160 acres or less and federal land must be harvested by
46.19a logger who has completed training for biomass harvesting from the Minnesota logger
46.20education program or the equivalent and have a forest stewardship plan.
46.21    Subd. 4. Agricultural cellulosic biomass sourcing plan. (a) An eligible producer
46.22who utilizes agricultural cellulosic biomass must submit a responsible biomass sourcing
46.23plan to the commissioner prior to applying for payments under this section. The plan must:
46.24(1) provide a detailed explanation of how agricultural cellulosic biomass will be
46.25produced and managed in a way that preserves soil quality, does not increase soil and
46.26nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts
46.27on wildlife habitat, and reduces greenhouse gas emissions;
46.28(2) include the producer's approach to verifying that biomass suppliers are following
46.29the plan;
46.30(3) discuss how new technologies and practices that are not yet commercially viable
46.31may be encouraged and adopted during the life of the facility, and how the producer will
46.32encourage continuous improvement during the life of the project; and
46.33(4) include specific numeric goals and timelines for making progress.
46.34(b) An eligible producer who utilizes agricultural cellulosic biomass and receives
46.35payments under this section shall submit an annual report on the producer's responsible
46.36biomass sourcing plan to the commissioner by January 15 each year. The report must
47.1include data on progress made by the producer in meeting specific goals laid out in the
47.2plan. The commissioner shall make the report publicly available. The commissioner shall
47.3perform an annual review of submitted reports and may make a determination that the
47.4producer is not following the plan based on the reports submitted. The commissioner
47.5may take appropriate steps, including reducing or ceasing payments, until the producer
47.6is in compliance with the plan.
47.7    Subd. 5. Claims. (a) By the last day of October, January, April, and July, each
47.8eligible renewable chemical producer shall file a claim for payment for renewable
47.9chemical production during the preceding three calendar months. An eligible renewable
47.10chemical producer that files a claim under this subdivision shall include a statement of
47.11the eligible producer's total renewable chemical production in Minnesota during the
47.12quarter covered by the claim. For each claim and statement of total renewable chemical
47.13production filed under this paragraph, the volume of renewable chemical production
47.14must be examined by a CPA firm with a valid permit to practice under chapter 326A, in
47.15accordance with Statements on Standards for Attestation Engagements established by the
47.16American Institute of Certified Public Accountants.
47.17(b) The commissioner must issue payments by November 15, February 15, May 15,
47.18and August 15. A separate payment must be made for each claim filed.

47.19    Sec. 60. [41A.18] BIOMASS THERMAL PRODUCTION INCENTIVE.
47.20    Subdivision 1. Eligibility. (a) A facility eligible for payment under this section must
47.21source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or
47.22less from the state border, raw materials should be sourced from within a 100-mile radius.
47.23Raw materials must be from agricultural or forestry sources. The facility must be located
47.24in Minnesota, must have begun production at a specific location by June 30, 2025, and
47.25must not begin before July 1, 2015. Eligible facilities include existing companies and
47.26facilities that are adding production capacity, or retrofitting existing capacity, as well as
47.27new companies and facilities. Eligible biomass thermal production facilities must produce
47.28at least 1,000 MMbtu per year.
47.29(b) No payments shall be made for biomass thermal production that occurs after June
47.3030, 2035, for those eligible biomass thermal producers under paragraph (a).
47.31(c) An eligible producer of biomass thermal production shall not transfer the
47.32producer's eligibility for payments under this section to a biomass thermal production
47.33facility at a different location.
47.34(d) A producer that ceases production for any reason is ineligible to receive
47.35payments under this section until the producer resumes production.
48.1(e) Biofuel production for which payment has been received under section 41A.16,
48.2and renewable chemical production for which payment has been received under section
48.341A.17, are not eligible for payment under this section.
48.4    Subd. 2. Payment amounts; bonus; limits; blending. (a) The commissioner shall
48.5make payments to eligible producers of biomass thermal located in the state. The amount
48.6of the payment for each producer's annual production is $5.00 per MMbtu of biomass
48.7thermal production produced at a specific location for ten years after the start of production.
48.8(b) An eligible facility producing biomass thermal using agricultural cellulosic
48.9biomass is eligible for a 20 percent bonus payment for each MMbtu produced from
48.10agricultural biomass that is derived from perennial crop or cover crop biomass.
48.11(c) Total payments under this section to an eligible thermal producer in a fiscal
48.12year may not exceed the amount necessary for 30,000 MMbtu of thermal production.
48.13Total payments under this section to all eligible thermal producers in a fiscal year may
48.14not exceed the amount necessary for 150,000 MMbtu of total thermal production. The
48.15commissioner shall award payments on a first-come, first-served basis within the limits of
48.16available funding.
48.17(d) An eligible facility may blend a cellulosic feedstock with other fuels in the
48.18biomass thermal production facility, but only the percentage attributable to cellulosic
48.19material is eligible to receive payment.
48.20(e) For purposes of this section, an entity that holds a controlling interest in more
48.21than one biomass thermal production facility is considered a single eligible producer.
48.22    Subd. 3. Cellulosic biomass requirements. All forestry-derived cellulosic biomass
48.23must be produced using Minnesota state biomass harvesting guidelines or the equivalent.
48.24All biomass from brushland must be produced using Minnesota brushland harvesting
48.25biomass guidelines or the equivalent. Forestry-derived cellulosic biomass that comes from
48.26land parcels greater than 160 acres must be certified by the Forest Stewardship Council,
48.27the Sustainable Forestry Initiative, or American Tree Farm. Uncertified land from parcels
48.28of 160 acres or less and federal land must be harvested by a logger who has completed
48.29training for biomass harvesting from the Minnesota logger education program or the
48.30equivalent and have a forest stewardship plan.
48.31    Subd. 4. Agricultural cellulosic biomass sourcing plan. (a) An eligible producer
48.32who utilizes agricultural cellulosic biomass must submit a responsible biomass sourcing
48.33plan to the commissioner prior to applying for payments under this section. The plan must:
48.34(1) provide a detailed explanation of how agricultural cellulosic biomass will be
48.35produced and managed in a way that preserves soil quality, does not increase soil and
49.1nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts
49.2on wildlife habitat, and reduces greenhouse gas emissions;
49.3(2) include the producer's approach to verifying that biomass suppliers are following
49.4the plan;
49.5(3) discuss how new technologies and practices that are not yet commercially viable
49.6may be encouraged and adopted during the life of the facility, and how the producer will
49.7encourage continuous improvement during the life of the project; and
49.8(4) include specific numeric goals and timelines for making progress.
49.9(b) An eligible producer who utilizes agricultural cellulosic biomass and receives
49.10payments under this section shall submit an annual report on the producer's responsible
49.11biomass sourcing plan to the commissioner by January 15 each year. The report must
49.12include data on progress made by the producer in meeting specific goals laid out in the
49.13plan. The commissioner shall make the report publicly available. The commissioner shall
49.14perform an annual review of submitted reports and may make a determination that the
49.15producer is not following the plan based on the reports submitted. The commissioner
49.16may take appropriate steps, including reducing or ceasing payments, until the producer
49.17is in compliance with the plan.
49.18    Subd. 5. Claims. (a) By the last day of October, January, April, and July, each
49.19producer shall file a claim for payment for biomass thermal production during the
49.20preceding three calendar months. A producer that files a claim under this subdivision shall
49.21include a statement of the producer's total biomass thermal production in Minnesota
49.22during the quarter covered by the claim. For each claim and statement of total biomass
49.23thermal production filed under this paragraph, the volume of biomass thermal production
49.24must be examined by a CPA firm with a valid permit to practice under chapter 326A, in
49.25accordance with Statements on Standards for Attestation Engagements established by the
49.26American Institute of Certified Public Accountants.
49.27(b) The commissioner must issue payments by November 15, February 15, May 15,
49.28and August 15. A separate payment shall be made for each claim filed.

49.29    Sec. 61. [41A.19] REPORT; INCENTIVE PROGRAMS.
49.30By January 15 each year, the commissioner shall report on the incentive programs
49.31under sections 41A.16, 41A.17, and 41A.18 to the legislative committees with jurisdiction
49.32over environment and agriculture policy and finance. The report shall include information
49.33on production and incentive expenditures under the programs.

49.34    Sec. 62. Minnesota Statutes 2014, section 41B.03, subdivision 6, is amended to read:
50.1    Subd. 6. Application fee. The authority may impose a reasonable nonrefundable
50.2application fee for each application submitted for a beginning farmer loan or a
50.3seller-sponsored loan. The application fee is initially $50. The authority may review the
50.4fee annually and make adjustments as necessary. The fee must be deposited in the state
50.5treasury and credited to an account in the special revenue fund. Money in the account is
50.6appropriated to the commissioner for administrative expenses of the beginning farmer
50.7and seller-sponsored loan programs the Rural Finance Authority administrative account
50.8established in subdivision 7.

50.9    Sec. 63. Minnesota Statutes 2014, section 41B.03, is amended by adding a subdivision
50.10to read:
50.11    Subd. 7. Rural Finance Authority administrative account. There is established
50.12in the agricultural fund a Rural Finance Authority administrative account. Money in the
50.13account, including interest, is appropriated to the commissioner of agriculture for the
50.14administrative expenses of the loan programs administered by the Rural Finance Authority.

50.15    Sec. 64. Minnesota Statutes 2014, section 41B.04, subdivision 17, is amended to read:
50.16    Subd. 17. Application and origination fee. The authority may impose a reasonable
50.17nonrefundable application fee for each application and an origination fee for each loan
50.18issued under the loan restructuring program. The origination fee is 1.5 percent of the
50.19authority's participation interest in the loan and the application fee is $50. The authority
50.20may review the fees annually and make adjustments as necessary. The fees must be
50.21deposited in the state treasury and credited to an account in the special revenue fund.
50.22Money in the account is appropriated to the commissioner for administrative expenses
50.23of the loan restructuring program the Rural Finance Authority administrative account
50.24established in section 41B.03.

50.25    Sec. 65. Minnesota Statutes 2014, section 41B.043, subdivision 3, is amended to read:
50.26    Subd. 3. Application and origination fee. The authority may impose a reasonable
50.27nonrefundable application fee for each application submitted for a participation issued
50.28under the agricultural improvement loan program. The application fee is initially $50. The
50.29authority may review the fees annually and make adjustments as necessary. The fees must
50.30be deposited in the state treasury and credited to an account in the special revenue fund.
50.31Money in this account is appropriated to the commissioner for administrative expenses of
50.32the agricultural improvement loan program the Rural Finance Authority administrative
50.33account established in section 41B.03.

51.1    Sec. 66. Minnesota Statutes 2014, section 41B.045, subdivision 3, is amended to read:
51.2    Subd. 3. Specifications. No loan may be made to refinance an existing debt. Each
51.3loan participation must be secured by a mortgage on real property and such other security
51.4as the authority may require.

51.5    Sec. 67. Minnesota Statutes 2014, section 41B.045, subdivision 4, is amended to read:
51.6    Subd. 4. Application and origination fee. The authority may impose a reasonable
51.7nonrefundable application fee for each application for a loan participation and an
51.8origination fee for each loan issued under the livestock expansion loan program. The
51.9origination fee initially shall be set at 1.5 percent and the application fee at $50. The
51.10authority may review the fees annually and make adjustments as necessary. The fees must
51.11be deposited in the state treasury and credited to an account in the special revenue fund.
51.12Money in this account is appropriated to the commissioner for administrative expenses of
51.13the livestock expansion loan program the Rural Finance Authority administrative account
51.14established in section 41B.03.

51.15    Sec. 68. Minnesota Statutes 2014, section 41B.046, subdivision 5, is amended to read:
51.16    Subd. 5. Loans. (a) The authority may participate in a stock loan with an eligible
51.17lender to a farmer who is eligible under subdivision 4. Participation is limited to 45
51.18percent of the principal amount of the loan or $40,000, whichever is less. The interest
51.19rates and repayment terms of the authority's participation interest may differ from the
51.20interest rates and repayment terms of the lender's retained portion of the loan, but the
51.21authority's interest rate must not exceed 50 percent of the lender's interest rate.
51.22(b) No more than 95 percent of the purchase price of the stock may be financed
51.23under this program.
51.24(c) Security for stock loans must be the stock purchased, a personal note executed by
51.25the borrower, and whatever other security is required by the eligible lender or the authority.
51.26(d) The authority may impose a reasonable nonrefundable application fee for each
51.27application for a stock loan. The authority may review the fee annually and make
51.28adjustments as necessary. The application fee is initially $50. Application fees received
51.29by the authority must be deposited in the revolving loan account established in section
51.3041B.06 Rural Finance Authority administrative account established in section 41B.03.
51.31(e) Stock loans under this program will be made using money in the revolving
51.32loan account established in section 41B.06.
51.33(f) The authority may not grant stock loans in a cumulative amount exceeding
51.34$2,000,000 for the financing of stock purchases in any one cooperative.
52.1(g) Repayments of financial assistance under this section, including principal and
52.2interest, must be deposited into the revolving loan account established in section 41B.06.

52.3    Sec. 69. Minnesota Statutes 2014, section 41B.047, subdivision 1, is amended to read:
52.4    Subdivision 1. Establishment. The authority shall establish and implement a
52.5disaster recovery loan program to help farmers:
52.6    (1) clean up, repair, or replace farm structures and septic and water systems, as well
52.7as replace seed, other crop inputs, feed, and livestock, when damaged by high winds,
52.8hail, tornado, or flood; or
52.9    (2) purchase watering systems, irrigation systems, and other drought mitigation
52.10systems and practices when drought is the cause of the purchase.;
52.11(3) restore farmland; or
52.12(4) replace flocks, make building improvements, and cover the loss of revenue when
52.13the replacement, improvements, or loss of revenue is due to the confirmed presence of
52.14the highly pathogenic avian influenza in a commercial poultry or game flock located
52.15in Minnesota.

52.16    Sec. 70. Minnesota Statutes 2014, section 41B.047, subdivision 3, is amended to read:
52.17    Subd. 3. Eligibility. To be eligible for this program, a borrower must:
52.18    (1) meet the requirements of section 41B.03, subdivision 1;
52.19    (2) certify that the damage or loss was (i) sustained within a county that was the
52.20subject of a state or federal disaster declaration or (ii) due to the confirmed presence of
52.21the highly pathogenic avian influenza in a commercial poultry or game flock located
52.22in Minnesota;
52.23    (3) demonstrate an ability to repay the loan; and
52.24    (4) have a total net worth, including assets and liabilities of the borrower's spouse
52.25and dependents, of less than $660,000 in 2004 and an amount in subsequent years which
52.26is adjusted for inflation by multiplying that amount by the cumulative inflation rate as
52.27determined by the Consumer Price Index; and
52.28    (5) (4) have received at least 50 percent of average annual gross income from
52.29farming for the past three years.

52.30    Sec. 71. Minnesota Statutes 2014, section 41B.047, subdivision 4, is amended to read:
52.31    Subd. 4. Loans. (a) The authority may participate in a disaster recovery loan with
52.32an eligible lender to a farmer who is eligible under subdivision 3. Participation is limited
52.33to 45 percent of the principal amount of the loan or $50,000 $200,000, whichever is less.
53.1The interest rates and repayment terms of the authority's participation interest may differ
53.2from the interest rates and repayment terms of the lender's retained portion of the loan, but
53.3the authority's interest rate must not exceed four percent.
53.4    (b) Standards for loan amortization shall be set by the Rural Finance Authority
53.5not to exceed ten years.
53.6    (c) Security for the disaster recovery loans must be a personal note executed by the
53.7borrower and whatever other security is required by the eligible lender or the authority.
53.8    (d) The authority may impose a reasonable nonrefundable application fee for a
53.9disaster recovery loan. The authority may review the fee annually and make adjustments
53.10as necessary. The application fee is initially $50. Application fees received by the
53.11authority must be deposited in the revolving loan account established under section
53.1241B.06 Rural Finance Authority administrative account established in section 41B.03.
53.13    (e) Disaster recovery loans under this program will be made using money in the
53.14revolving loan account established under section 41B.06.
53.15    (f) Repayments of financial assistance under this section, including principal and
53.16interest, must be deposited into the revolving loan account established under section
53.1741B.06 .

53.18    Sec. 72. Minnesota Statutes 2014, section 41B.048, subdivision 6, is amended to read:
53.19    Subd. 6. Loans. (a) The authority may disburse loans through a fiscal agent to
53.20farmers and agricultural landowners who are eligible under subdivision 5. The total
53.21accumulative loan principal must not exceed $75,000 per loan.
53.22(b) The fiscal agent may impose a loan origination fee in the amount of one percent
53.23of the total approved loan. This fee is to be paid by the borrower to the fiscal agent at
53.24the time of loan closing.
53.25(c) The loan may be disbursed over a period not to exceed 12 years.
53.26(d) A borrower may receive loans, depending on the availability of funds, for planted
53.27areas up to 160 acres for up to:
53.28(1) the total amount necessary for establishment of the crop;
53.29(2) the total amount of maintenance costs, including weed control, during the first
53.30three years; and
53.31(3) 70 percent of the estimated value of one year's growth of the crop for years
53.32four through 12.
53.33(e) Security for the loan must be the crop, a personal note executed by the borrower, an
53.34interest in the land upon which the crop is growing, and whatever other security is required
53.35by the fiscal agent or the authority. All recording fees must be paid by the borrower.
54.1(f) The authority may prescribe forms and establish an application process for
54.2applicants to apply for a loan.
54.3(g) The authority may impose a reasonable, nonrefundable application fee for each
54.4application for a loan under this program. The application fee is initially $50. Application
54.5fees received by the authority must be deposited in the revolving loan account established
54.6under section 41B.06 Rural Finance Authority administrative account established in
54.7section 41B.03.
54.8(h) Loans under the program must be made using money in the revolving loan
54.9account established under section 41B.06.
54.10(i) All repayments of financial assistance granted under this section, including
54.11principal and interest, must be deposited into the revolving loan account established
54.12under section 41B.06.
54.13(j) The interest payable on loans made by the authority for the agroforestry loan
54.14program must, if funded by revenue bond proceeds, be at a rate not less than the rate on the
54.15revenue bonds, and may be established at a higher rate necessary to pay costs associated
54.16with the issuance of the revenue bonds and a proportionate share of the cost of administering
54.17the program. The interest payable on loans for the agroforestry loan program funded from
54.18sources other than revenue bond proceeds must be at a rate determined by the authority.
54.19(k) Loan principal balance outstanding plus all assessed interest must be repaid
54.20within 120 days of harvest, but no later than 15 years from planting.

54.21    Sec. 73. Minnesota Statutes 2014, section 41B.049, subdivision 4, is amended to read:
54.22    Subd. 4. Loans. (a) The authority may make a direct loan or participate in a loan
54.23with an eligible lender to a farmer who is eligible under subdivision 3. Repayment terms
54.24of the authority's participation interest may differ from repayment terms of the lender's
54.25retained portion of the loan. Loans made under this section must be no-interest loans.
54.26(b) Application for a direct loan or a loan participation must be made on forms
54.27prescribed by the authority.
54.28(c) Standards for loan amortization shall be set by the Rural Finance Authority
54.29not to exceed ten years.
54.30(d) Security for the loans must be a personal note executed by the borrower and
54.31whatever other security is required by the eligible lender or the authority.
54.32(e) No loan proceeds may be used to refinance a debt existing prior to application.
54.33(f) The authority may impose a reasonable nonrefundable application fee for
54.34each application for a direct loan or a loan participation. The authority may review the
54.35application fees annually and make adjustments as necessary. The application fee is
55.1initially set at $100 for a loan under subdivision 1. The fees received by the authority must
55.2be deposited in the revolving loan account established in section 41B.06 Rural Finance
55.3Authority administrative account established in section 41B.03.

55.4    Sec. 74. Minnesota Statutes 2014, section 41B.055, subdivision 3, is amended to read:
55.5    Subd. 3. Loans. (a) The authority may participate in a livestock equipment loan
55.6equal to 90 percent of the purchased equipment value with an eligible lender to a farmer
55.7who is eligible under subdivision 2. Participation is limited to 45 percent of the principal
55.8amount of the loan or $40,000, whichever is less. The interest rates and repayment terms
55.9of the authority's participation interest may differ from the interest rates and repayment
55.10terms of the lender's retained portion of the loan, but the authority's interest rate must
55.11not exceed three percent. The authority may review the interest annually and make
55.12adjustments as necessary.
55.13    (b) Standards for loan amortization must be set by the Rural Finance Authority
55.14and must not exceed ten years.
55.15    (c) Security for a livestock equipment loan must be a personal note executed by the
55.16borrower and whatever other security is required by the eligible lender or the authority.
55.17    (d) Refinancing of existing debt is not an eligible purpose.
55.18    (e) The authority may impose a reasonable, nonrefundable application fee for
55.19a livestock equipment loan. The authority may review the fee annually and make
55.20adjustments as necessary. The initial application fee is $50. Application fees received
55.21by the authority must be deposited in the revolving loan account established in section
55.2241B.06 Rural Finance Authority administrative account established in section 41B.03.
55.23    (f) Loans under this program must be made using money in the revolving loan
55.24account established in section 41B.06.

55.25    Sec. 75. Minnesota Statutes 2014, section 41B.056, subdivision 2, is amended to read:
55.26    Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
55.27(b) "Intermediary" means any lending institution or other organization of a for-profit
55.28or nonprofit nature that is in good standing with the state of Minnesota that has the
55.29appropriate business structure and trained personnel suitable to providing efficient
55.30disbursement of loan funds and the servicing and collection of loans.
55.31(c) "Specialty crops" means agricultural crops, such as annuals, flowers, perennials,
55.32and other horticultural products, that are intensively cultivated.
56.1(d) "Eligible livestock" means poultry that has been allowed access to the outside,
56.2sheep, or goats beef cattle, dairy cattle, swine, poultry, goats, mules, farmed cervidae,
56.3ratitae, bison, sheep, horses, and llamas.

56.4    Sec. 76. [41B.057] FARM OPPORTUNITY LOAN PROGRAM.
56.5    Subdivision 1. Establishment. The authority shall establish a farm opportunity loan
56.6program to provide loans that enable farmers to:
56.7(1) add value to crops or livestock produced in Minnesota;
56.8(2) adopt best management practices that emphasize sufficiency and self-sufficiency;
56.9(3) reduce or improve management of agricultural inputs resulting in environmental
56.10improvements; or
56.11(4) increase production of on-farm energy.
56.12    Subd. 2. Loan criteria. (a) The farm opportunity loan program shall provide loans
56.13for purchase of new or used equipment and installation of equipment for projects that
56.14make environmental improvements and enhance farm profitability. The loan program
56.15shall also be used to add value to crops or livestock produced in Minnesota by, but not
56.16limited to, initiating or expanding livestock product processing; purchasing equipment to
56.17initiate, upgrade, or modernize value-added agricultural businesses; or increasing farmers'
56.18processing and aggregating capacity facilitating entry into farm-to-institution and other
56.19markets. Eligible loan uses do not include expenses related to seeds, fertilizer, fuel, or
56.20other operating expenses.
56.21(b) The authority may impose a reasonable, nonrefundable application fee for a farm
56.22opportunity loan. The authority may review the fee annually and make adjustments as
56.23necessary. The initial application fee is $50. Application fees received by the authority
56.24must be deposited in the Rural Finance Authority administrative account established
56.25in section 41B.03.
56.26(c) Loans may only be made to Minnesota residents engaged in farming. Standards
56.27for loan amortization must be set by the Rural Finance Authority and must not exceed
56.28ten years.
56.29(d) The borrower must show the ability to repay the loan.
56.30(e) Refinancing of existing debt is not an eligible expense.
56.31(f) Loans under this program must be made using money in the revolving loan
56.32account established in section 41B.06.
56.33    Subd. 3. Loan participation. The authority may participate in a farm opportunity
56.34loan with an eligible lender, as defined in section 41B.02, subdivision 8, to a farmer or a
56.35group of farmers on joint projects who are eligible under subdivision 2, paragraph (c),
57.1and who are actively engaged in farming. Participation is limited to 45 percent of the
57.2principal amount of the loan or $45,000 per individual, whichever is less. For loans to a
57.3group made up of four or more individuals, participation is limited to 45 percent of the
57.4principal amount of the loan or $180,000, whichever is less. The interest rate on the
57.5loans must not exceed six percent.

57.6    Sec. 77. Minnesota Statutes 2014, section 41B.06, is amended to read:
57.741B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.
57.8    There is established in the rural finance administration fund a Rural Finance
57.9Authority revolving loan account that is eligible to receive appropriations and the transfer
57.10of loan funds from other programs. All repayments of financial assistance granted from
57.11this account, including principal and interest, must be deposited into this account. Interest
57.12earned on money in the account accrues to the account, and the money in the account is
57.13appropriated to the commissioner of agriculture for purposes of the Rural Finance Authority
57.14livestock equipment, methane digester, disaster recovery, value-added agricultural
57.15product, agroforestry, and agricultural microloan, and farm opportunity loan programs,
57.16including costs incurred by the authority to establish and administer the programs.

57.17    Sec. 78. Minnesota Statutes 2014, section 135A.52, is amended by adding a
57.18subdivision to read:
57.19    Subd. 6. Farm business management. Minnesota State Colleges and Universities
57.20campuses that offer farm business management may specify space availability in the
57.21delivery of farm business management courses.

57.22    Sec. 79. Minnesota Statutes 2014, section 375.30, subdivision 2, is amended to read:
57.23    Subd. 2. Wild hemp. A county board, by resolution, may appropriate and spend
57.24money as necessary to spray and otherwise eradicate wild hemp, commonly known as
57.25marijuana, on private property within the county. The county board may authorize the
57.26use of county equipment, personnel and supplies and materials to spray or otherwise
57.27eradicate wild hemp on private property, and may pro rate the expenses involved between
57.28the county and owner or occupant of the property. Industrial hemp grown by a person
57.29licensed under chapter 18K is not wild hemp.

57.30    Sec. 80. Minnesota Statutes 2014, section 500.24, subdivision 4, is amended to read:
57.31    Subd. 4. Reports. (a) The chief executive officer of every pension or investment
57.32fund, corporation, limited partnership, limited liability company, or entity that is seeking
58.1to qualify for an exemption from the commissioner, and the trustee of a family farm trust
58.2that holds any interest in agricultural land or land used for the breeding, feeding, pasturing,
58.3growing, or raising of livestock, dairy or poultry, or products thereof, or land used for
58.4the production of agricultural crops or fruit or other horticultural products, other than a
58.5bona fide encumbrance taken for purposes of security, or which is engaged in farming
58.6or proposing to commence farming in this state after May 20, 1973, shall file with the
58.7commissioner a report containing the following information and documents:
58.8(1) the name of the pension or investment fund, corporation, limited partnership, or
58.9limited liability company and its place of incorporation, certification, or registration;
58.10(2) the address of the pension or investment plan headquarters or of the registered
58.11office of the corporation in this state, the name and address of its registered agent in this state
58.12and, in the case of a foreign corporation, limited partnership, or limited liability company,
58.13the address of its principal office in its place of incorporation, certification, or registration;
58.14(3) the acreage and location listed by quarter-quarter section, township, and county
58.15of each lot or parcel of agricultural land or land used for the keeping or feeding of poultry
58.16in this state owned or leased by the pension or investment fund, limited partnership,
58.17corporation, or limited liability company;
58.18(4) the names and addresses of the officers, administrators, directors, or trustees of
58.19the pension or investment fund, or of the officers, shareholders owning more than ten
58.20percent of the stock, including the percent of stock owned by each such shareholder, the
58.21members of the board of directors of the corporation, and the members of the limited
58.22liability company, and the general and limited partners and the percentage of interest in
58.23the partnership by each partner;
58.24(5) the farm products which the pension or investment fund, limited partnership,
58.25corporation, or limited liability company produces or intends to produce on its agricultural
58.26land;
58.27(6) with the first report, a copy of the title to the property where the farming operations
58.28are or will occur indicating the particular exception claimed under subdivision 3; and
58.29(7) with the first or second report, a copy of the conservation plan proposed by the
58.30soil and water conservation district, and with subsequent reports a statement of whether
58.31the conservation plan was implemented.
58.32The report of a corporation, trust, limited liability company, or partnership seeking
58.33to qualify hereunder as a family farm corporation, an authorized farm corporation, an
58.34authorized livestock farm corporation, a family farm partnership, an authorized farm
58.35partnership, a family farm limited liability company, an authorized farm limited liability
58.36company, or a family farm trust or under an exemption from the commissioner shall
59.1contain the following additional information: the number of shares, partnership interests,
59.2or governance and financial rights owned by persons or current beneficiaries of a family
59.3farm trust residing on the farm or actively engaged in farming, or their relatives within
59.4the third degree of kindred according to the rules of the civil law or their spouses; the
59.5name, address, and number of shares owned by each shareholder, partnership interests
59.6owned by each partner or governance and financial rights owned by each member, and a
59.7statement as to percentage of gross receipts of the corporation derived from rent, royalties,
59.8dividends, interest, and annuities. No pension or investment fund, limited partnership,
59.9corporation, or limited liability company shall commence farming in this state until the
59.10commissioner has inspected the report and certified that its proposed operations comply
59.11with the provisions of this section.
59.12(b) Every pension or investment fund, limited partnership, trust, corporation, or
59.13limited liability company as described in paragraph (a) shall, prior to April 15 of each
59.14year, file with the commissioner a report containing the information required in paragraph
59.15(a), based on its operations in the preceding calendar year and its status at the end of the
59.16year. A pension or investment fund, limited partnership, corporation, or limited liability
59.17company that does not file the report by April 15 must pay a $500 civil penalty. The
59.18penalty is a lien on the land being farmed under subdivision 3 until the penalty is paid.
59.19(c) The commissioner may, for good cause shown, issue a written waiver or
59.20reduction of the civil penalty for failure to make a timely filing of the annual report
59.21required by this subdivision. The waiver or reduction is final and conclusive with respect
59.22to the civil penalty, and may not be reopened or modified by an officer, employee, or
59.23agent of the state, except upon a showing of fraud or malfeasance or misrepresentation
59.24of a material fact. The report required under paragraph (b) must be completed prior to a
59.25reduction or waiver under this paragraph. The commissioner may enter into an agreement
59.26under this paragraph only once for each corporation or partnership.
59.27(d) All reports required by paragraph (a) shall include a filing fee of $15. The fee
59.28must be deposited in the state treasury and credited to an account in the agricultural fund.
59.29Money in the account, including interest, is appropriated to the commissioner for the
59.30administrative expenses of this section.
59.31(d) (e) Failure to file a required report or the willful filing of false information is a
59.32gross misdemeanor.

59.33    Sec. 81. Minnesota Statutes 2014, section 583.215, is amended to read:
59.34583.215 EXPIRATION.
60.1Sections 336.9-601, subsections (h) and (i); 550.365; 559.209; 582.039; and 583.20
60.2to 583.32, expire June 30, 2016 2017.
60.3EFFECTIVE DATE.This section is effective May 23, 2016, if the legislature does
60.4not meet in regular session in calendar year 2016 before May 23, 2016. If the legislature
60.5meets in regular session in calendar year 2016 before May 23, 2016, this section is void.

60.6    Sec. 82. Laws 2014, chapter 312, article 12, section 3, is amended to read:
60.7
Sec. 3. AGRICULTURE.
$
-0-
$
2,750,000
60.8$2,000,000 in 2015 is for a grant to Second
60.9Harvest Heartland on behalf of the six
60.10Feeding America food banks that serve
60.11Minnesota to compensate agricultural
60.12producers and processors for costs incurred
60.13to harvest and package for transfer surplus
60.14fruits, vegetables, or other agricultural
60.15commodities that would otherwise go
60.16unharvested or, be discarded, or be sold in
60.17a secondary market. Surplus commodities
60.18must be distributed statewide to food
60.19shelves and other charitable organizations
60.20that are eligible to receive food from the
60.21food banks. Surplus food acquired under
60.22this appropriation must be from Minnesota
60.23producers and processors. Second Harvest
60.24Heartland must report when required by, and
60.25in the form prescribed by, the commissioner.
60.26For fiscal year 2015, Second Harvest
60.27Heartland may use up to 11 percent of any
60.28grant received for administrative expenses
60.29and up to four percent of the grant for
60.30transportation expenses. For fiscal years
60.312016 and 2017, Second Harvest Heartland
60.32may use up to five percent of any grant
60.33received for administrative expenses. This
61.1is a onetime appropriation and is available
61.2until June 30, 2017.
61.3The commissioner shall examine how other
61.4states are implementing the industrial hemp
61.5research authority provided in Public Law
61.6113-79 and gauge the interest of Minnesota
61.7higher education institutions. No later
61.8than January 15, 2015, the commissioner
61.9must report the information and items for
61.10legislative consideration to the legislative
61.11committees with jurisdiction over agriculture
61.12policy and finance.
61.13$350,000 in 2015 is for an increase in retail
61.14food handler inspections.
61.15$200,000 in 2015 is added to the
61.16appropriation in Laws 2013, chapter 114,
61.17article 1, section 3, subdivision 4, for
61.18distribution to the state's county fairs. This is
61.19a onetime appropriation.
61.20$200,000 in 2015 is for a grant as determined
61.21by the commissioner to a public higher
61.22education institution to research porcine
61.23epidemic diarrhea virus. This is a onetime
61.24appropriation and is available until June 30,
61.252017.

61.26    Sec. 83. LIVESTOCK INDUSTRY STUDY.
61.27The commissioner of agriculture must identify causes of the relative growth or
61.28decline in the number of head of poultry and livestock produced in Minnesota, Iowa,
61.29North Dakota, South Dakota, Wisconsin, and Nebraska over the last ten years, including
61.30but not limited to the impact of nuisance conditions and lawsuits filed against poultry or
61.31livestock farms. No later than February 1, 2016, the commissioner must report findings
61.32by poultry and livestock sector and provide recommendations on how to strengthen and
61.33expand Minnesota animal agriculture to the legislative committees with jurisdiction over
61.34agriculture policy and finance.

62.1    Sec. 84. CORRECTIONAL FACILITY VOCATIONAL TRAINING PILOT
62.2PROGRAM.
62.3    Subdivision 1. Pilot program. The commissioner of agriculture must coordinate
62.4a pilot program operated by the Northeast Regional Corrections Center to train inmates
62.5for careers as meat cutters upon release. The commissioner must facilitate program
62.6development and ensure that the program prepares inmates to meet applicable food safety
62.7and licensure requirements.
62.8    Subd. 2. Program development. In facilitating development of the pilot program,
62.9the commissioner must consult with the commissioner of employment and economic
62.10development and a representative of each of the following organizations:
62.11(1) Northeast Regional Corrections Center; and
62.12(2) United Food and Commercial Workers.
62.13    Subd. 3. Report required. No later than February 1, 2017, the commissioner must
62.14report on the progress and outcomes of the program to the legislative committees with
62.15jurisdiction over agriculture, economic development, higher education, and public safety.
62.16    Subd. 4. Expiration. This section expires on June 30, 2017.

62.17    Sec. 85. URBAN AGRICULTURE DEVELOPMENT PROPOSAL.
62.18The commissioner of agriculture must convene interested stakeholders and develop
62.19a proposal to effectively and efficiently promote urban agriculture in Minnesota cities.
62.20For purposes of this section, "urban agriculture" means producing agricultural plants,
62.21poultry, or livestock on public or private property within city limits. No later than January
62.2215, 2016, the commissioner must report to the legislative committees with jurisdiction
62.23over agriculture policy and finance and submit proposed legislation that includes a new
62.24definition of urban agriculture if the commissioner and stakeholders determine that a
62.25different definition more accurately defines urban agriculture.

62.26    Sec. 86. BALANCES TRANSFERRED; ACCOUNTS ABOLISHED.
62.27The balances in the accounts created under Minnesota Statutes, sections 41B.03,
62.28subdivision 6; 41B.04, subdivision 17; 41B.043, subdivision 3; and 41B.045, subdivision
62.294, are transferred to the Rural Finance Authority administrative account established under
62.30Minnesota Statutes, section 41B.03, subdivision 7, and the original accounts are abolished.
63.1The balance in the account created under Minnesota Statutes, section 17.115,
63.2is transferred to the Rural Finance Authority revolving loan account established under
63.3Minnesota Statutes, section 41B.06, and the original account is abolished.

63.4    Sec. 87. REPEALER.
63.5Minnesota Statutes 2014, sections 17.115; 28A.15, subdivisions 9 and 10; and
63.6116V.03, are repealed.

63.7ARTICLE 3
63.8ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS

63.9
Section 1. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.
63.10    The sums shown in the columns marked "Appropriations" are appropriated to the
63.11agencies and for the purposes specified in this article. The appropriations are from the
63.12general fund, or another named fund, and are available for the fiscal years indicated
63.13for each purpose. The figures "2016" and "2017" used in this article mean that the
63.14appropriations listed under them are available for the fiscal year ending June 30, 2016, or
63.15June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal
63.16year 2017. "The biennium" is fiscal years 2016 and 2017. Appropriations for the fiscal
63.17year ending June 30, 2015, are effective the day following final enactment.
63.18
APPROPRIATIONS
63.19
Available for the Year
63.20
Ending June 30
63.21
2016
2017

63.22
Sec. 2. POLLUTION CONTROL AGENCY
63.23
Subdivision 1.Total Appropriation
$
94,582,000
$
91,784,000
63.24
Appropriations by Fund
63.25
2016
2017
63.26
General
6,395,000
5,727,000
63.27
63.28
State Government
Special Revenue
75,000
75,000
63.29
Environmental
73,480,000
74,548,000
63.30
Remediation
14,632,000
11,434,000
63.31The amounts that may be spent for each
63.32purpose are specified in the following
63.33subdivisions.
64.1The commissioner must present the agency's
64.2biennial budget for fiscal years 2018 and
64.32019 to the legislature in a transparent way
64.4by agency division, including the proposed
64.5budget bill and presentations of the budget to
64.6committees and divisions with jurisdiction
64.7over the agency's budget.
64.8
Subd. 2.Water
26,388,000
26,081,000
64.9
Appropriations by Fund
64.10
2016
2017
64.11
General
4,307,000
3,627,000
64.12
64.13
State Government
Special Revenue
75,000
75,000
64.14
Environmental
22,006,000
22,379,000
64.15$1,959,000 the first year and $1,959,000
64.16the second year are for grants to delegated
64.17counties to administer the county feedlot
64.18program under Minnesota Statutes, section
64.19116.0711, subdivisions 2 and 3. Money
64.20remaining after the first year is available for
64.21the second year.
64.22$753,000 the first year and $765,000 the
64.23second year are from the environmental
64.24fund to address the need for continued
64.25increased activity in the areas of new
64.26technology review, technical assistance
64.27for local governments, and enforcement
64.28under Minnesota Statutes, sections 115.55
64.29to 115.58, and to complete the requirements
64.30of Laws 2003, chapter 128, article 1, section
64.31165.
64.32$673,000 the first year and $683,000 the
64.33second year are from the environmental
64.34fund for subsurface sewage treatment
64.35system (SSTS) program administration
64.36and community technical assistance and
65.1education, including grants and technical
65.2assistance to communities for water quality
65.3protection. Of this amount, $129,000 each
65.4year is for assistance to counties through
65.5grants for SSTS program administration.
65.6A county receiving a grant from this
65.7appropriation shall submit the results
65.8achieved with the grant to the commissioner
65.9as part of its annual SSTS report. Any
65.10unexpended balance in the first year does not
65.11cancel but is available in the second year.
65.12$107,000 the first year and $109,000 the
65.13second year are from the environmental fund
65.14for registration of wastewater laboratories.
65.15$913,000 the first year and $913,000 the
65.16second year are from the environmental fund
65.17to continue perfluorochemical biomonitoring
65.18in eastern metropolitan communities, as
65.19recommended by the Environmental Health
65.20Tracking and Biomonitoring Advisory Panel,
65.21and address other environmental health risks,
65.22including air quality. The communities must
65.23include Hmong and other immigrant farming
65.24communities. Of this amount, up to $677,000
65.25the first year and $677,000 the second year
65.26are for transfer to the Department of Health.
65.27$250,000 the first year and $250,000 the
65.28second year are from the general fund for:
65.29(1) a municipal liaison to assist municipalities
65.30in implementing and participating in the
65.31water quality standards rulemaking process
65.32and navigating the NPDES/SDS permitting
65.33process;
65.34(2) enhanced economic analysis in the
65.35water quality standards rulemaking process,
66.1including more specific analysis and
66.2identification of cost-effective permitting;
66.3(3) development of statewide economic
66.4analyses and templates to reduce the
66.5amount of information and time required for
66.6municipalities to apply for variances from
66.7water quality standards; and
66.8(4) coordinating with the Public Facilities
66.9Authority to identify and advocate for
66.10the resources needed for municipalities to
66.11achieve permit requirements.
66.12$500,000 the first year is for independent
66.13peer reviews under Minnesota Statutes,
66.14section 115.035, and cost analyses of water
66.15quality standards and rules. A portion of
66.16this appropriation may be transferred to the
66.17commissioner of management and budget for
66.18water quality standards cost analyses.
66.19$200,000 the first year is for a grant to
66.20the Red River Basin Commission for
66.21development of a water quality strategic plan
66.22for the Red River of the North. This is a
66.23onetime appropriation and is available until
66.24June 30, 2018. The plan must include, but is
66.25not limited to, consistency in water quality
66.26goals and objectives for the Red River of the
66.27North and pollution reduction allocations for
66.28both point and nonpoint sources on the Red
66.29River of the North and for individual major
66.30watersheds tributary to the Red River of the
66.31North. The Red River Basin Commission
66.32must involve the interests of local, state, and
66.33federal government, business and industry,
66.34environmental groups, and Red River
66.35Basin landowners. The Red River Basin
67.1Commission must report progress on the plan
67.2to the house of representatives and senate
67.3committees and divisions with jurisdiction
67.4over environment policy and finance by
67.5February 15 in 2016 and 2017, and must
67.6submit the completed plan by December 31,
67.72017.
67.8Notwithstanding Minnesota Statutes, section
67.916A.28, the appropriations encumbered on or
67.10before June 30, 2017, as grants or contracts
67.11for subsurface sewage treatment systems,
67.12surface water and groundwater assessments,
67.13total maximum daily loads, storm water, and
67.14water quality protection in this subdivision
67.15are available until June 30, 2020.
67.16
Subd. 3.Air
15,640,000
16,087,000
67.17
Appropriations by Fund
67.18
2016
2017
67.19
Environmental
15,640,000
16,087,000
67.20$202,000 the first year and $204,000 the
67.21second year are from the environmental fund
67.22for a monitoring program under Minnesota
67.23Statutes, section 116.454.
67.24Up to $150,000 the first year and $150,000
67.25the second year may be transferred from the
67.26environmental fund to the small business
67.27environmental improvement loan account
67.28established in Minnesota Statutes, section
67.29116.993.
67.30$340,000 the first year and $346,000 the
67.31second year are from the environmental fund
67.32for monitoring ambient air for hazardous
67.33pollutants.
68.1$691,000 the first year and $693,000 the
68.2second year are from the environmental fund
68.3for emission reduction activities and grants to
68.4small businesses and other nonpoint emission
68.5reduction efforts. Of this amount, $100,000
68.6the first year and $100,000 the second year is
68.7to continue work with Clean Air Minnesota,
68.8and the commissioner may enter into an
68.9agreement with Environmental Initiative
68.10to support this effort. Any unexpended
68.11balance in the first year does not cancel but is
68.12available in the second year.
68.13
Subd. 4.Land
21,663,000
18,584,000
68.14
Appropriations by Fund
68.15
2016
2017
68.16
Environmental
7,031,000
7,150,000
68.17
Remediation
14,632,000
11,434,000
68.18All money for environmental response,
68.19compensation, and compliance in the
68.20remediation fund not otherwise appropriated
68.21is appropriated to the commissioners of the
68.22Pollution Control Agency and agriculture
68.23for purposes of Minnesota Statutes, section
68.24115B.20, subdivision 2, clauses (1), (2),
68.25(3), (6), and (7). At the beginning of each
68.26fiscal year, the two commissioners shall
68.27jointly submit an annual spending plan
68.28to the commissioner of management and
68.29budget that maximizes the utilization of
68.30resources and appropriately allocates the
68.31money between the two departments. This
68.32appropriation is available until June 30, 2017.
68.33$4,279,000 the first year and $4,343,000 the
68.34second year are from the remediation fund
68.35for purposes of the leaking underground
69.1storage tank program to investigate, clean up,
69.2and prevent future releases from underground
69.3petroleum storage tanks, and to the petroleum
69.4remediation program for purposes of vapor
69.5assessment and remediation. These same
69.6annual amounts are transferred from the
69.7petroleum tank fund to the remediation fund.
69.8$252,000 the first year and $252,000 the
69.9second year are from the remediation fund
69.10for transfer to the commissioner of health for
69.11private water supply monitoring and health
69.12assessment costs in areas contaminated
69.13by unpermitted mixed municipal solid
69.14waste disposal facilities and drinking water
69.15advisories and public information activities
69.16for areas contaminated by hazardous releases.
69.17$743,000 the first year is transferred from the
69.18general account in the remediation fund to
69.19the dry cleaner environmental response and
69.20reimbursement account in the remediation
69.21fund for the purpose of remediating
69.22land contaminated by a release from a
69.23dry cleaning facility, as provided under
69.24Minnesota Statutes, section 115B.50. The
69.25commissioner shall prioritize expenditures
69.26from this transfer to address contaminated
69.27sites that pose the greatest risk to public
69.28health or welfare or to the environment, as
69.29established in Minnesota Statutes, section
69.30115B.17, subdivision 13. This is a onetime
69.31transfer. The commissioner shall reimburse
69.32only a person who otherwise would not be
69.33responsible for a release or threatened release
69.34under Minnesota Statutes, section 115B.03,
69.35for all but $10,000 of the environmental
69.36response costs incurred by the person if the
70.1commissioner determines that the costs are
70.2reasonable and were actually incurred. To be
70.3eligible for reimbursement from this transfer,
70.4a person seeking reimbursement must make
70.5a request to the commissioner, as required
70.6under Minnesota Statutes, section 115B.50,
70.7subdivision 2, on or before the day following
70.8final enactment of this act.
70.9$868,000 the first year is from the remediation
70.10fund for a grant to the city of Mountain Iron
70.11for remediation of the abandoned wastewater
70.12treatment pond of the former Nichols
70.13Township. This is a onetime appropriation
70.14that is available until June 30, 2019.
70.15
70.16
Subd. 5.Environmental Assistance and
Cross-Media
30,891,000
31,032,000
70.17
Appropriations by Fund
70.18
2016
2017
70.19
Environmental
28,803,000
28,932,000
70.20
General
2,088,000
2,100,000
70.21$17,250,000 the first year and $17,250,000
70.22the second year are from the environmental
70.23fund for SCORE block grants to counties.
70.24$119,000 the first year and $119,000 the
70.25second year are from the environmental
70.26fund for environmental assistance grants
70.27or loans under Minnesota Statutes, section
70.28115A.0716. Any unencumbered grant and
70.29loan balances in the first year do not cancel
70.30but are available for grants and loans in the
70.31second year.
70.32$90,000 the first year and $90,000 the
70.33second year are from the environmental fund
70.34for duties related to harmful chemicals in
70.35products under Minnesota Statutes, sections
71.1116.9401 to 116.9407. Of this amount,
71.2$57,000 each year is transferred to the
71.3commissioner of health.
71.4$203,000 the first year and $207,000 the
71.5second year are from the environmental
71.6fund for the costs of implementing general
71.7operating permits for feedlots over 1,000
71.8animal units.
71.9$315,000 the first year and $319,000 the
71.10second year are from the general fund and
71.11$192,000 the first year and $192,000 the
71.12second year are from the environmental fund
71.13for Environmental Quality Board operations
71.14and support.
71.15$50,000 the first year and $50,000 the second
71.16year are from the environmental fund for
71.17transfer to the Office of Administrative
71.18Hearings to establish sanitary districts.
71.19$502,000 the first year and $503,000 the
71.20second year are from the general fund for
71.21the Environmental Quality Board to lead
71.22an interagency team to provide technical
71.23assistance regarding the mining, processing,
71.24and transporting of silica sand. Of this
71.25amount, up to $75,000 each year may be
71.26transferred to the commissioner of natural
71.27resources to review the implementation
71.28of the rules adopted by the commissioner
71.29pursuant to Laws 2013, ‎chapter 114, article 4,
71.30section 105, paragraph (b), pertaining to the
71.31reclamation of silica sand mines, to ensure
71.32that local government reclamation programs
71.33are implemented in a manner consistent with
71.34the rules.
72.1$450,000 the first year and $450,000 the
72.2second year are from the environmental
72.3fund to develop and maintain systems to
72.4support permitting and regulatory business
72.5processes and agency data. This is a onetime
72.6appropriation.
72.7$1,000,000 the first year and $1,000,000 the
72.8second year are for competitive recycling
72.9grants under Minnesota Statutes, section
72.10115A.565. This appropriation is available
72.11until June 30, 2018.
72.12$50,000 the first year and $50,000 the second
72.13year are to acquire and co-locate waste and
72.14recycling receptacles, in cooperation with
72.15the commissioner of administration, at the
72.16State Office Building. Any remaining funds
72.17may be used for these purposes at other
72.18facilities within the Capitol complex. This is
72.19a onetime appropriation.
72.20All money deposited in the environmental
72.21fund for the metropolitan solid waste
72.22landfill fee in accordance with Minnesota
72.23Statutes, section 473.843, and not otherwise
72.24appropriated, is appropriated for the purposes
72.25of Minnesota Statutes, section 473.844.
72.26Notwithstanding Minnesota Statutes, section
72.2716A.28, the appropriations encumbered on
72.28or before June 30, 2017, as contracts or
72.29grants for surface water and groundwater
72.30assessments; environmental assistance
72.31awarded under Minnesota Statutes, section
72.32115A.0716; technical and research assistance
72.33under Minnesota Statutes, section 115A.152;
72.34technical assistance under Minnesota
72.35Statutes, section 115A.52; and pollution
73.1prevention assistance under Minnesota
73.2Statutes, section 115D.04, are available until
73.3June 30, 2019.
73.4
Subd. 6.Transfers
73.5By June 30, 2016, the commissioner of
73.6management and budget shall transfer
73.7$51,308,000 from the closed landfill
73.8investment fund to the general fund.
73.9The commissioner of the Pollution Control
73.10Agency shall transfer $8,100,000 in
73.11fiscal year 2016 from the metropolitan
73.12landfill contingency action trust account in
73.13Minnesota Statutes, section 473.845, to the
73.14commissioner of management and budget for
73.15cancellation to the general fund.
73.16
Subd. 7.Remediation Fund
73.17The commissioner shall transfer up to
73.18$42,000,000 from the environmental fund to
73.19the remediation fund for the purposes of the
73.20remediation fund under Minnesota Statutes,
73.21section 116.155, subdivision 2.
73.22$2,500,000 is transferred from the petroleum
73.23tank fund to the remediation fund and
73.24is appropriated in the first year to the
73.25commissioner for a grant to the city of
73.26Paynesville to add an air stripping treatment
73.27process to a water treatment plant for
73.28removal of volatile organic compounds. This
73.29appropriation is effective January 1, 2016.

73.30
Sec. 3. NATURAL RESOURCES
73.31
Subdivision 1.Total Appropriation
$
263,944,000
$
261,979,000
73.32
Appropriations by Fund
73.33
2016
2017
74.1
General
75,331,000
74,062,000
74.2
Natural Resources
84,927,000
85,603,000
74.3
Game and Fish
102,386,000
102,014,000
74.4
Remediation
1,100,000
100,000
74.5
Permanent School
200,000
200,000
74.6The amounts that may be spent for each
74.7purpose are specified in the following
74.8subdivisions.
74.9
74.10
Subd. 2.Land and Mineral Resources
Management
6,461,000
5,521,000
74.11
Appropriations by Fund
74.12
2016
2017
74.13
General
1,585,000
1,585,000
74.14
Natural Resources
3,332,000
3,392,000
74.15
Game and Fish
344,000
344,000
74.16
Remediation
1,000,000
-0-
74.17
Permanent School
200,000
200,000
74.18$68,000 the first year and $68,000 the
74.19second year are for minerals cooperative
74.20environmental research, of which $34,000
74.21the first year and $34,000 the second year are
74.22available only as matched by $1 of nonstate
74.23money for each $1 of state money. The
74.24match may be cash or in-kind.
74.25$251,000 the first year and $251,000 the
74.26second year are for iron ore cooperative
74.27research. Of this amount, $200,000 each year
74.28is from the minerals management account
74.29in the natural resources fund. $175,000 the
74.30first year and $175,000 the second year are
74.31available only as matched by $1 of nonstate
74.32money for each $1 of state money. The match
74.33may be cash or in-kind. Any unencumbered
74.34balance from the first year does not cancel
74.35and is available in the second year.
75.1$2,755,000 the first year and $2,815,000
75.2the second year are from the minerals
75.3management account in the natural resources
75.4fund for use as provided in Minnesota
75.5Statutes, section 93.2236, paragraph (c),
75.6for mineral resource management, projects
75.7to enhance future mineral income, and
75.8projects to promote new mineral resource
75.9opportunities.
75.10$200,000 the first year and $200,000 the
75.11second year are from the state forest suspense
75.12account in the permanent school fund to
75.13accelerate land exchanges, land sales, and
75.14commercial leasing of school trust lands and
75.15to identify, evaluate, and lease construction
75.16aggregate located on school trust lands. This
75.17appropriation is to be used for securing
75.18long-term economic return from the
75.19school trust lands consistent with fiduciary
75.20responsibilities and sound natural resources
75.21conservation and management principles.
75.22Notwithstanding Minnesota Statutes, section
75.23115B.20, $1,000,000 the first year is from
75.24the dedicated account within the remediation
75.25fund for the purposes of Minnesota Statutes,
75.26section 115B.20, subdivision 2, clause (4),
75.27to acquire salt lands as described under
75.28Minnesota Statutes, section 92.05, within
75.29Bear Head Lake State Park. This is a onetime
75.30appropriation and is available until June 30,
75.312018.
75.32
Subd. 3.Ecological and Water Resources
32,414,000
32,167,000
75.33
Appropriations by Fund
75.34
2016
2017
75.35
General
17,526,000
17,110,000
76.1
Natural Resources
10,502,000
10,576,000
76.2
Game and Fish
4,386,000
4,481,000
76.3$3,242,000 the first year and $3,242,000 the
76.4second year are from the invasive species
76.5account in the natural resources fund and
76.6$3,206,000 the first year and $3,206,000 the
76.7second year are from the general fund for
76.8management, public awareness, assessment
76.9and monitoring research, and water access
76.10inspection to prevent the spread of invasive
76.11species; management of invasive plants in
76.12public waters; and management of terrestrial
76.13invasive species on state-administered lands.
76.14$5,000,000 the first year and $5,000,000 the
76.15second year are from the water management
76.16account in the natural resources fund for only
76.17the purposes specified in Minnesota Statutes,
76.18section 103G.27, subdivision 2.
76.19$124,000 the first year and $124,000 the
76.20second year are for a grant to the Mississippi
76.21Headwaters Board for up to 50 percent of
76.22the cost of implementing the comprehensive
76.23plan for the upper Mississippi within areas
76.24under the board's jurisdiction.
76.25$10,000 the first year and $10,000 the second
76.26year are for payment to the Leech Lake Band
76.27of Chippewa Indians to implement the band's
76.28portion of the comprehensive plan for the
76.29upper Mississippi.
76.30$264,000 the first year and $264,000 the
76.31second year are for grants for up to 50
76.32percent of the cost of implementation of the
76.33Red River mediation agreement.
77.1$2,018,000 the first year and $2,018,000
77.2the second year are from the heritage
77.3enhancement account in the game and
77.4fish fund for only the purposes specified
77.5in Minnesota Statutes, section 297A.94,
77.6paragraph (e), clause (1).
77.7$950,000 the first year and $950,000 the
77.8second year are from the nongame wildlife
77.9management account in the natural resources
77.10fund for the purpose of nongame wildlife
77.11management. Notwithstanding Minnesota
77.12Statutes, section 290.431, $100,000 the first
77.13year and $100,000 the second year may
77.14be used for nongame wildlife information,
77.15education, and promotion.
77.16$6,000,000 the first year and $6,000,000 the
77.17second year are from the general fund for the
77.18following activities:
77.19(1) financial reimbursement and technical
77.20support to soil and water conservation
77.21districts or other local units of government
77.22for groundwater level monitoring;
77.23(2) surface water monitoring and analysis,
77.24including installation of monitoring gauges;
77.25(3) groundwater analysis to assist with water
77.26appropriation permitting decisions;
77.27(4) permit application review incorporating
77.28surface water and groundwater technical
77.29analysis;
77.30(5) precipitation data and analysis to improve
77.31the use of irrigation;
77.32(6) information technology, including
77.33electronic permitting and integrated data
77.34systems; and
78.1(7) compliance and monitoring.
78.2$10,000 the first year and $64,000 the
78.3second year are to study, in cooperation
78.4with the Board of Water and Soil Resources,
78.5the feasibility of the state assuming
78.6administration of the section 404 permit
78.7program of the federal Clean Water Act
78.8as required in this act. This is a onetime
78.9appropriation.
78.10$100,000 the first year is to develop
78.11cost estimates, in cooperation with the
78.12Metropolitan Council, for the augmentation
78.13of White Bear Lake with water from
78.14the Sucker Lake chain of lakes. The
78.15commissioner must submit a report with
78.16the cost estimates developed under this
78.17paragraph to the chairs and ranking minority
78.18members of the house of representatives
78.19and senate committees and divisions with
78.20jurisdiction over environment and natural
78.21resources policy and finance by February 1,
78.222016. This is a onetime appropriation.
78.23The commissioner of natural resources must
78.24create a groundwater model that uses existing
78.25data for the Bonanza Valley Groundwater
78.26Management Area to describe the current
78.27groundwater conditions and characterize the
78.28nature and extent of the primary aquifers
78.29and the relationship of surface water and
78.30groundwater.
78.31$400,000 the first year is for grants to assist
78.32in the construction of flood protection rural
78.33and farmstead ring levees in the Red River
78.34watershed. Grants may not exceed 50 percent
78.35of the cost of the projects. This is a onetime
79.1appropriation and is available until June 30,
79.22019.
79.3$75,000 is for a grant to the city of Virginia
79.4for erosion control on the northeast side of
79.5Silver Lake to protect public and private
79.6property and infrastructure.
79.7
Subd. 4.Forest Management
39,614,000
39,781,000
79.8
Appropriations by Fund
79.9
2016
2017
79.10
General
26,446,000
26,350,000
79.11
Natural Resources
11,881,000
12,144,000
79.12
Game and Fish
1,287,000
1,287,000
79.13$7,145,000 the first year and $7,145,000
79.14the second year are for prevention,
79.15presuppression, and suppression costs of
79.16emergency firefighting and other costs
79.17incurred under Minnesota Statutes, section
79.1888.12. The amount necessary to pay for
79.19presuppression and suppression costs during
79.20the biennium is appropriated from the general
79.21fund.
79.22By January 15 of each year, the commissioner
79.23of natural resources shall submit a report to
79.24the chairs and ranking minority members
79.25of the house and senate committees
79.26and divisions having jurisdiction over
79.27environment and natural resources finance,
79.28identifying all firefighting costs incurred
79.29and reimbursements received in the prior
79.30fiscal year. These appropriations may
79.31not be transferred. Any reimbursement
79.32of firefighting expenditures made to the
79.33commissioner from any source other than
79.34federal mobilizations shall be deposited into
79.35the general fund.
80.1$11,881,000 the first year and $12,144,000
80.2the second year are from the forest
80.3management investment account in the
80.4natural resources fund for only the purposes
80.5specified in Minnesota Statutes, section
80.689.039, subdivision 2. The base for fiscal
80.7year 2018 and later is $11,644,000.
80.8$1,287,000 the first year and $1,287,000
80.9the second year are from the heritage
80.10enhancement account in the game and fish
80.11fund to advance ecological classification
80.12systems (ECS) scientific management tools
80.13for forest and invasive species management.
80.14This appropriation is from revenue deposited
80.15in the game and fish fund under Minnesota
80.16Statutes, section 297A.94, paragraph (e),
80.17clause (1).
80.18$780,000 the first year and $780,000 the
80.19second year are for the Forest Resources
80.20Council for implementation of the
80.21Sustainable Forest Resources Act.
80.22$250,000 the first year and $250,000 the
80.23second year are for the FORIST system.
80.24At least $500,000 the first year is for forest
80.25road maintenance. The commissioner
80.26shall use the money to perform needed
80.27maintenance on forest roads in conjunction
80.28with timber sales.
80.29The commissioner shall contract with a
80.30telecommunication provider to place a cell
80.31phone transmitter on the ranger tower on
80.32Side Lake in St. Louis County.
80.33
Subd. 5.Parks and Trails Management
74,064,000
73,650,000
81.1
Appropriations by Fund
81.2
2016
2017
81.3
General
24,967,000
24,427,000
81.4
Natural Resources
46,831,000
46,950,000
81.5
Game and Fish
2,266,000
2,273,000
81.6$1,075,000 the first year and $1,075,000 the
81.7second year are from the water recreation
81.8account in the natural resources fund for
81.9enhancing public water access facilities.
81.10$5,740,000 the first year and $5,740,000 the
81.11second year are from the natural resources
81.12fund for state trail, park, and recreation area
81.13operations. This appropriation is from the
81.14revenue deposited in the natural resources
81.15fund under Minnesota Statutes, section
81.16297A.94, paragraph (e), clause (2).
81.17$1,005,000 the first year and $1,005,000 the
81.18second year are from the natural resources
81.19fund for park and trail grants to local units of
81.20government on land to be maintained for at
81.21least 20 years for the purposes of the grants.
81.22This appropriation is from the revenue
81.23deposited in the natural resources fund
81.24under Minnesota Statutes, section 297A.94,
81.25paragraph (e), clause (4). Any unencumbered
81.26balance does not cancel at the end of the first
81.27year and is available for the second year.
81.28$8,424,000 the first year and $8,424,000
81.29the second year are from the snowmobile
81.30trails and enforcement account in the
81.31natural resources fund for the snowmobile
81.32grants-in-aid program. Any unencumbered
81.33balance does not cancel at the end of the first
81.34year and is available for the second year.
82.1$1,360,000 the first year and $1,360,000
82.2the second year are from the natural
82.3resources fund for the off-highway vehicle
82.4grants-in-aid program. Of this amount,
82.5$1,210,000 each year is from the all-terrain
82.6vehicle account; and $150,000 each year is
82.7from the off-highway motorcycle account.
82.8Any unencumbered balance does not cancel
82.9at the end of the first year and is available for
82.10the second year.
82.11$75,000 the first year and $75,000 the second
82.12year are from the cross-country ski account
82.13in the natural resources fund for grooming
82.14and maintaining cross-country ski trails in
82.15state parks, trails, and recreation areas.
82.16$250,000 the first year and $250,000 the
82.17second year are from the state land and
82.18water conservation account (LAWCON)
82.19in the natural resources fund for priorities
82.20established by the commissioner for eligible
82.21state projects and administrative and
82.22planning activities consistent with Minnesota
82.23Statutes, section 84.0264, and the federal
82.24Land and Water Conservation Fund Act.
82.25Any unencumbered balance does not cancel
82.26at the end of the first year and is available for
82.27the second year.
82.28$968,000 the first year and $968,000 the
82.29second year are from the off-road vehicle
82.30account in the natural resources fund. Of
82.31this amount, $568,000 each year is for parks
82.32and trails management for off-road vehicle
82.33purposes; $325,000 each year is for the
82.34off-road vehicle grant in aid program; and
82.35$75,000 each year is for a new full-time
83.1employee position or contract in northern
83.2Minnesota to work in conjunction with the
83.3Minnesota Four-Wheel Drive Association
83.4to address off-road vehicle touring routes
83.5and other issues related to off-road vehicle
83.6activities. Of this appropriation, the $325,000
83.7each year is onetime.
83.8$65,000 the first year is from the water
83.9recreation account in the natural resources
83.10fund to cooperate with local units of
83.11government in marking routes and
83.12designating river accesses and campsites
83.13under Minnesota Statutes, section 85.32.
83.14This is a onetime appropriation and is
83.15available until June 30, 2019.
83.16$190,000 the first year is for a grant to the
83.17city of Virginia for the additional cost of
83.18supporting a trail due to the rerouting of
83.19U.S. Highway No. 53. This is a onetime
83.20appropriation and is available until June 30,
83.212019.
83.22$50,000 the first year is for development of
83.23a master plan for the Mississippi Blufflands
83.24Trail, including work on possible extensions
83.25or connections to other state or regional
83.26trails. This is a onetime appropriation that is
83.27available until June 30, 2017.
83.28$61,000 from the natural resources fund the
83.29first year is for a grant to the city of East
83.30Grand Forks for payment under a reciprocity
83.31agreement for the Red River State Recreation
83.32Area.
83.33$500,000 the first year is for restoration or
83.34replacement of a historic trestle bridge in
84.1Blackduck. This is a onetime appropriation
84.2and is available until June 30, 2019.
84.3The base for parks and trails operations in
84.4the natural resources fund in fiscal year 2018
84.5and thereafter is $46,450,000.
84.6
Subd. 6.Fish and Wildlife Management
71,177,000
71,713,000
84.7
Appropriations by Fund
84.8
2016
2017
84.9
Natural Resources
1,908,000
1,912,000
84.10
Game and Fish
69,269,000
69,801,000
84.11$8,167,000 the first year and $8,167,000
84.12the second year are from the heritage
84.13enhancement account in the game and fish
84.14fund only for activities specified in Minnesota
84.15Statutes, section 297A.94, paragraph (e),
84.16clause (1). Notwithstanding Minnesota
84.17Statutes, section 297A.94, five percent of
84.18this appropriation may be used for expanding
84.19hunter and angler recruitment and retention.
84.20$1,000,000 the first year and $1,000,000
84.21the second year are from the game and
84.22fish fund for shooting sports facility grants
84.23under Minnesota Statutes, section 87A.10,
84.24including grants for archery facilities. Up to
84.25$100,000 each year is available for shooting
84.26sports facilities on state lands. Grants must
84.27be matched with a nonstate match, which
84.28may include in-kind contributions. This is a
84.29onetime appropriation and is available until
84.30June 30, 2019.
84.31The game and fish fund base for fish and
84.32wildlife management in fiscal year 2018 and
84.33thereafter is $65,619,000.
85.1Notwithstanding Minnesota Statutes, section
85.284.943, $13,000 the first year and $13,000
85.3the second year from the critical habitat
85.4private sector matching account may be used
85.5to publicize the critical habitat license plate
85.6match program.
85.7
Subd. 7.Enforcement
39,344,000
38,377,000
85.8
Appropriations by Fund
85.9
2016
2017
85.10
General
4,257,000
4,140,000
85.11
Natural Resources
10,153,000
10,309,000
85.12
Game and Fish
24,834,000
23,828,000
85.13
Remediation
100,000
100,000
85.14$200,000 the first year is from the general
85.15fund and $1,900,000 the first year is from the
85.16game and fish fund are for aviation services.
85.17This appropriation is onetime.
85.18$1,718,000 the first year and $1,718,000 the
85.19second year are from the general fund for
85.20enforcement efforts to prevent the spread of
85.21aquatic invasive species.
85.22$1,537,000 the first year and $1,580,000
85.23the second year are from the heritage
85.24enhancement account in the game and
85.25fish fund for only the purposes specified
85.26in Minnesota Statutes, section 297A.94,
85.27paragraph (e), clause (1).
85.28$1,082,000 the first year and $1,082,000 the
85.29second year are from the water recreation
85.30account in the natural resources fund for
85.31grants to counties for boat and water safety.
85.32Any unencumbered balance does not cancel
85.33at the end of the first year and is available for
85.34the second year.
86.1$315,000 the first year and $315,000 the
86.2second year are from the snowmobile
86.3trails and enforcement account in the
86.4natural resources fund for grants to local
86.5law enforcement agencies for snowmobile
86.6enforcement activities. Any unencumbered
86.7balance does not cancel at the end of the first
86.8year and is available for the second year.
86.9$250,000 the first year and $250,000
86.10the second year are from the all-terrain
86.11vehicle account for grants to qualifying
86.12organizations to assist in safety and
86.13environmental education and monitoring
86.14trails on public lands under Minnesota
86.15Statutes, section 84.9011. Grants issued
86.16under this paragraph must be issued through
86.17a formal agreement with the organization.
86.18By December 15 each year, an organization
86.19receiving a grant under this paragraph shall
86.20report to the commissioner with details on
86.21expenditures and outcomes from the grant.
86.22Of this appropriation, $25,000 each year
86.23is for administration of these grants. Any
86.24unencumbered balance does not cancel at the
86.25end of the first year and is available for the
86.26second year.
86.27$510,000 the first year and $510,000
86.28the second year are from the natural
86.29resources fund for grants to county law
86.30enforcement agencies for off-highway
86.31vehicle enforcement and public education
86.32activities based on off-highway vehicle use
86.33in the county. Of this amount, $498,000 each
86.34year is from the all-terrain vehicle account;
86.35$11,000 each year is from the off-highway
86.36motorcycle account; and $1,000 each year
87.1is from the off-road vehicle account. The
87.2county enforcement agencies may use
87.3money received under this appropriation
87.4to make grants to other local enforcement
87.5agencies within the county that have a high
87.6concentration of off-highway vehicle use.
87.7Of this appropriation, $25,000 each year
87.8is for administration of these grants. Any
87.9unencumbered balance does not cancel at the
87.10end of the first year and is available for the
87.11second year.
87.12
Subd. 8.Operations Support
870,000
770,000
87.13
Appropriations by Fund
87.14
2016
2017
87.15
General
550,000
450,000
87.16
Natural Resources
320,000
320,000
87.17$320,000 the first year and $320,000 the
87.18second year are from the natural resources
87.19fund for grants to be divided equally between
87.20the city of St. Paul for the Como Park Zoo
87.21and Conservatory and the city of Duluth
87.22for the Duluth Zoo. This appropriation
87.23is from the revenue deposited to the fund
87.24under Minnesota Statutes, section 297A.94,
87.25paragraph (e), clause (5).
87.26$300,000 the first year and $450,000 the
87.27second year are for legal costs related to water
87.28management. This is a onetime appropriation
87.29and is available until June 30, 2018.
87.30With money appropriated in this section, the
87.31commissioner shall give preference to call
87.32centers located in Minnesota.
87.33
Subd. 9.Cancellation
88.1The general fund appropriation of $1,000,000
88.2in Laws 2014, chapter 312, article 12, section
88.36, subdivision 2, is canceled on July 1, 2015.

88.4
88.5
Sec. 4. BOARD OF WATER AND SOIL
RESOURCES
$
13,237,000
$
13,415,000
88.6$3,423,000 the first year and $3,423,000 the
88.7second year are for natural resources block
88.8grants to local governments. Grants must be
88.9matched with a combination of local cash or
88.10in-kind contributions. The base grant portion
88.11related to water planning must be matched
88.12by an amount as specified by Minnesota
88.13Statutes, section 103B.3369. The board may
88.14reduce the amount of the natural resources
88.15block grant to a county by an amount equal to
88.16any reduction in the county's general services
88.17allocation to a soil and water conservation
88.18district from the county's previous year
88.19allocation when the board determines that
88.20the reduction was disproportionate.
88.21$3,116,000 the first year and $3,116,000 the
88.22second year are for grants to soil and water
88.23conservation districts for general purposes,
88.24nonpoint engineering, and implementation of
88.25the reinvest in Minnesota reserve program.
88.26Expenditures may be made from these
88.27appropriations for supplies and services
88.28benefiting soil and water conservation
88.29districts. Any district receiving a grant under
88.30this paragraph shall maintain a Web page that
88.31publishes, at a minimum, its annual report,
88.32annual audit, annual budget, and meeting
88.33notices.
89.1$1,560,000 the first year and $1,560,000 the
89.2second year are for the following cost-share
89.3programs:
89.4(1) $260,000 each year is for feedlot water
89.5quality grants for feedlots under 300 animal
89.6units and nutrient and manure management
89.7projects in watersheds where there are
89.8impaired waters;
89.9(2) $1,200,000 each year is for soil and
89.10water conservation district cost-sharing
89.11contracts for perennially vegetated riparian
89.12buffers, erosion control, water retention
89.13and treatment, and other high-priority
89.14conservation practices; and
89.15(3) $100,000 each year is for county
89.16cooperative weed management programs and
89.17to restore native plants in selected invasive
89.18species management sites.
89.19$800,000 the first year and $750,000
89.20the second year are for implementation,
89.21enforcement, and oversight of the Wetland
89.22Conservation Act, including administration
89.23of the wetland banking program and in-lieu
89.24fee mechanism. The base for fiscal year 2018
89.25and later is $761,000.
89.26$166,000 the first year and $166,000
89.27the second year are to provide technical
89.28assistance to local drainage management
89.29officials and for the costs of the Drainage
89.30Work Group.
89.31$100,000 the first year and $100,000
89.32the second year are for a grant to the
89.33Red River Basin Commission for water
89.34quality and floodplain management,
90.1including administration of programs. This
90.2appropriation must be matched by nonstate
90.3funds. If the appropriation in either year is
90.4insufficient, the appropriation in the other
90.5year is available for it.
90.6$140,000 the first year and $140,000
90.7the second year are for grants to Area
90.8II Minnesota River Basin Projects for
90.9floodplain management.
90.10$8,000 the first year and $262,000 the
90.11second year are to study, in cooperation
90.12with the commissioner of natural resources,
90.13the feasibility of the state assuming
90.14administration of the section 404 permit
90.15program of the federal Clean Water Act
90.16as required in this act. This is a onetime
90.17appropriation.
90.18Notwithstanding Minnesota Statutes, section
90.19103C.501, the board may shift cost-share
90.20funds in this section and may adjust the
90.21technical and administrative assistance
90.22portion of the grant funds to leverage
90.23federal or other nonstate funds or to address
90.24high-priority needs identified in local water
90.25management plans or comprehensive water
90.26management plans.
90.27The appropriations for grants in this
90.28section are available until expended. If an
90.29appropriation for grants in either year is
90.30insufficient, the appropriation in the other
90.31year is available for it.
90.32The base for the board in fiscal year 2018 and
90.33thereafter is increased by $11,000,000 for
90.34grants to soil and water conservation districts
90.35to implement buffer requirements.

91.1
Sec. 5. METROPOLITAN COUNCIL
$
8,740,000
$
8,740,000
91.2
Appropriations by Fund
91.3
2016
2017
91.4
General
3,070,000
3,070,000
91.5
Natural Resources
5,670,000
5,670,000
91.6$2,870,000 the first year and $2,870,000 the
91.7second year are for metropolitan area regional
91.8parks operation and maintenance according
91.9to Minnesota Statutes, section 473.351.
91.10$5,670,000 the first year and $5,670,000 the
91.11second year are from the natural resources
91.12fund for metropolitan area regional parks
91.13and trails maintenance and operations. This
91.14appropriation is from the revenue deposited
91.15in the natural resources fund under Minnesota
91.16Statutes, section 297A.94, paragraph (e),
91.17clause (3).
91.18$200,000 the first year and $200,000 the
91.19second year are for the Metropolitan Area
91.20Water Supply Policy Advisory Committee
91.21study and the Metropolitan Area Water
91.22Supply Technical Advisory Committee
91.23required under Minnesota Statutes, section
91.24473.1565. This is a onetime appropriation.

91.25
91.26
Sec. 6. CONSERVATION CORPS
MINNESOTA
$
945,000
$
945,000
91.27
Appropriations by Fund
91.28
2016
2017
91.29
General
455,000
455,000
91.30
Natural Resources
490,000
490,000
91.31Conservation Corps Minnesota may receive
91.32money appropriated from the natural
91.33resources fund under this section only
92.1as provided in an agreement with the
92.2commissioner of natural resources.

92.3
Sec. 7. ZOOLOGICAL BOARD
$
8,410,000
$
8,410,000
92.4
Appropriations by Fund
92.5
2016
2017
92.6
General
8,250,000
8,250,000
92.7
Natural Resources
160,000
160,000
92.8$160,000 the first year and $160,000 the
92.9second year are from the natural resources
92.10fund from the revenue deposited under
92.11Minnesota Statutes, section 297A.94,
92.12paragraph (e), clause (5).

92.13
Sec. 8. SCIENCE MUSEUM
$
1,079,000
$
1,079,000

92.14
Sec. 9. ADMINISTRATION
$
300,000
$
300,000
92.15$300,000 the first year and $300,000
92.16the second year are from the state forest
92.17suspense account in the permanent school
92.18fund for the school trust lands director to
92.19accelerate land exchanges, land sales, and
92.20commercial leasing of school trust lands and
92.21to identify, evaluate, and lease construction
92.22aggregate located on school trust lands. This
92.23appropriation is to be used for securing
92.24long-term economic return from the
92.25school trust lands consistent with fiduciary
92.26responsibilities and sound natural resources
92.27conservation and management principles.

92.28
Sec. 10. REPAYMENT; TRANSFER
92.29The commissioner of management and
92.30budget shall transfer $19,016,000 in fiscal
92.31year 2018 and $19,016,000 in fiscal year
92.322019 from the general fund to the closed
93.1landfill investment fund created in Minnesota
93.2Statutes, section 115B.421.

93.3    Sec. 11. Laws 2010, chapter 215, article 3, section 5, subdivision 4, is amended to read:
93.4
Subd. 4.Returned Grants
93.5Beginning July 1, 2010, all returned grant
93.6money originating from general fund grant
93.7programs will be deposited into individual
93.8accounts in the special revenue fund and held
93.9for eventual transfer back to the general fund.
93.10On December 15, 2010, and on December
93.1115 of each year thereafter, $310,000 of the
93.12receipts in this special revenue fund will
93.13be transferred to the general fund. If less
93.14than $310,000 is available on the transfer
93.15date, an additional transfer on June 15
93.16sufficient to make the $310,000 annual
93.17obligation will be made may be used for
93.18the purposes of Minnesota Statutes, section
93.19103B.102, for grants to local governments
93.20as authorized in Minnesota Statutes, section
93.21103B.3369, or to cover onetime costs for
93.22implementation of natural resources block
93.23grant funded programs, including the
93.24Wetland Conservation Act, wetland banking,
93.25shoreland management, and local water
93.26management programs.

93.27    Sec. 12. Laws 2014, chapter 312, article 12, section 6, subdivision 5, is amended to read:
93.28
93.29
Subd. 5.Fish and Wildlife
Management
-0-
2,412,000
93.30$3,000 in 2015 is from the heritage
93.31enhancement account in the game and fish
93.32fund for a report on aquatic plant management
93.33permitting policies for the management
94.1of narrow-leaved and hybrid cattail in a
94.2range of basin types across the state. The
94.3report shall be submitted to the chairs and
94.4ranking minority members of the house of
94.5representatives and senate committees with
94.6jurisdiction over environment and natural
94.7resources by December 15, 2014, and include
94.8recommendations for any necessary changes
94.9in statutes, rules, or permitting procedures.
94.10This is a onetime appropriation.
94.11$9,000 in 2015 is from the game and fish
94.12fund for the commissioner, in consultation
94.13with interested parties, agencies, and other
94.14states, to develop a detailed restoration plan
94.15to recover the historical native population of
94.16bobwhite quail in Minnesota for its ecological
94.17and recreational benefits to the citizens of the
94.18state. The commissioner shall conduct public
94.19meetings in developing the plan. No later
94.20than January 15, 2015, the commissioner
94.21must report on the plan's progress to the
94.22legislative committees with jurisdiction over
94.23environment and natural resources policy
94.24and finance. This is a onetime appropriation.
94.25$2,000,000 in 2015 is from the game and
94.26fish fund for shooting sports facility grants
94.27under Minnesota Statutes, section 87A.10.
94.28The commissioner may spend up to $50,000
94.29of this appropriation to administer the grant.
94.30This is a onetime appropriation and is
94.31available until June 30, 2017.
94.32$400,000 in 2015 is from the heritage
94.33enhancement account in the game and fish
94.34fund for hunter and angler recruitment
94.35and retention activities and grants to local
95.1chapters of Let's Go Fishing of Minnesota
95.2to provide community outreach to senior
95.3citizens, youth, and veterans and for the costs
95.4associated with establishing and recruiting
95.5new chapters. The grants must be matched
95.6with cash or in-kind contributions from
95.7nonstate sources. Of this amount, $25,000
95.8is for Asian Outdoor Heritage for youth
95.9fishing recruitment efforts and outreach in
95.10the metropolitan area. The commissioner
95.11shall establish a grant application process
95.12that includes a standard for ownership
95.13of equipment purchased under the grant
95.14program and contract requirements that
95.15cover the disposition of purchased equipment
95.16if the grantee no longer exists. Any
95.17equipment purchased with state grant money
95.18must be specified on the grant application
95.19and approved by the commissioner. The
95.20commissioner may spend up to three percent
95.21of the appropriation to administer the grant.
95.22This is a onetime appropriation and is
95.23available until June 30, 2016.

95.24    Sec. 13. REPEALER.
95.25Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended by Laws
95.262010, First Special Session chapter 1, article 6, section 6, Laws 2013, chapter 114, article
95.273, section 9, is repealed.

95.28ARTICLE 4
95.29ENVIRONMENT AND NATURAL RESOURCES STATUTORY CHANGES

95.30    Section 1. Minnesota Statutes 2014, section 16C.073, subdivision 2, is amended to read:
95.31    Subd. 2. Purchases; printing. (a) Whenever practicable, a public entity shall:
95.32(1) purchase uncoated copy paper, office paper, and printing paper;
96.1(2) purchase recycled content copy paper with at least ten 30 percent postconsumer
96.2material by weight and purchase printing and office paper with at least ten percent
96.3postconsumer material by weight;
96.4(3) purchase copy, office, and printing paper which has not been dyed with colors,
96.5excluding pastel colors;
96.6(4) purchase recycled content copy, office, and printing paper that is manufactured
96.7using little or no chlorine bleach or chlorine derivatives;
96.8(5) use no more than two colored inks, standard or processed, except in formats
96.9where they are necessary to convey meaning;
96.10(6) (5) use reusable binding materials or staples and bind documents by methods
96.11that do not use glue;
96.12(7) (6) use soy-based inks;
96.13(8) (7) produce reports, publications, and periodicals that are readily recyclable
96.14within the state resource recovery program; and
96.15(9) (8) purchase paper which has been made on a paper machine located in Minnesota.
96.16(b) Paragraph (a), clause (1), does not apply to coated paper that is made with at
96.17least 50 percent postconsumer material.
96.18(c) A public entity shall print documents on both sides of the paper where commonly
96.19accepted publishing practices allow.
96.20(d) Notwithstanding paragraph (a), clause (2), and section 16C.0725, copier paper
96.21purchased by a state agency must contain at least ten percent postconsumer material by
96.22fiber content.

96.23    Sec. 2. Minnesota Statutes 2014, section 84.415, subdivision 7, is amended to read:
96.24    Subd. 7. Existing road right-of-way; Application fee exemption. (a) A utility
96.25license for crossing public lands or public waters is exempt from all application fees
96.26specified in this section and in rules adopted under this section when the utility crossing is
96.27on an existing right-of-way of a public road.
96.28(b) This subdivision does not apply to electric power lines, cables, or conduits 100
96.29kilovolts or greater or to main pipelines for gas, liquids, or solids in suspension.
96.30EFFECTIVE DATE.This section is effective retroactively from July 1, 2014, and
96.31does not authorize the retroactive collection of fees.

96.32    Sec. 3. [84.69] NATURAL RESOURCES CONSERVATION EASEMENT
96.33STEWARDSHIP ACCOUNT.
97.1    Subdivision 1. Account established; sources. The natural resources conservation
97.2easement stewardship account is created in the special revenue fund. The account consists
97.3of money credited to the account and interest and other earnings on money in the account.
97.4The State Board of Investment must manage the account to maximize long-term gain. The
97.5following revenue must be deposited in the natural resources conservation easement
97.6stewardship account:
97.7(1) contributions to the account or specified for any purpose of the account;
97.8(2) contributions under subdivision 3; section 84.66, subdivision 11; or other
97.9applicable law;
97.10(3) money appropriated for any of the purposes described in subdivision 2;
97.11(4) money appropriated for monitoring and enforcement of easements and earnings
97.12on the money appropriated that revert to the state under section 97A.056, subdivision
97.1317, or other applicable law; and
97.14(5) gifts under section 84.085 for conservation easement stewardship.
97.15    Subd. 2. Appropriation; purposes of account. Five percent of the balance on
97.16July 1 of each year in the natural resources conservation easement stewardship account
97.17is annually appropriated to the commissioner of natural resources and may be spent
97.18only to cover the costs of managing conservation easements held by the Department
97.19of Natural Resources, including costs associated with monitoring, landowner contacts,
97.20records storage and management, processing landowner notices, requests for approval
97.21or amendments, enforcement, and legal services associated with conservation easement
97.22management activities.
97.23    Subd. 3. Financial contributions. The commissioner shall seek a financial
97.24contribution to the natural resources conservation easement stewardship account for each
97.25conservation easement acquired by or assigned to the Department of Natural Resources.
97.26Unless otherwise provided by law, the commissioner shall determine the amount of the
97.27contribution, which must be an amount calculated to earn sufficient money to meet
97.28the costs of managing the conservation easement at a level that neither significantly
97.29overrecovers nor underrecovers the costs. In determining the amount of the financial
97.30contribution, the commissioner shall consider:
97.31(1) the estimated annual staff hours needed to manage the conservation easement,
97.32taking into consideration factors such as easement type, size, location, and complexity;
97.33(2) the average hourly wages for the class or classes of employees expected to
97.34manage the conservation easement;
97.35(3) the estimated annual travel expenses to manage the conservation easement;
98.1(4) the estimated annual miscellaneous costs to manage the conservation easement,
98.2including supplies and equipment, information technology support, and aerial flyovers;
98.3(5) the estimated annualized cost of legal services, including the cost to enforce the
98.4easement in the event of a violation; and
98.5(6) the expected rate of return on investments in the account.
98.6EFFECTIVE DATE.Subdivisions 1 and 2 of this section are effective the day
98.7following final enactment. Subdivision 3 of this section is effective for conservation
98.8easements acquired with money appropriated on or after July 1, 2015, and for acquisitions
98.9of conservation easements by gift that are initiated on or after July 1, 2015.

98.10    Sec. 4. Minnesota Statutes 2014, section 84.788, subdivision 5, is amended to read:
98.11    Subd. 5. Report of ownership transfers; fee. A person who sells or transfers (a)
98.12Application for transfer of ownership of an off-highway motorcycle registered under
98.13this section shall report the sale or transfer must be made to the commissioner within
98.1415 days of the date of transfer.
98.15(b) An application for transfer must be executed by the registered owner and the
98.16buyer on a form prescribed by the commissioner with the owner's registration certificate,
98.17purchaser using a bill of sale, and a $4 fee that includes the vehicle serial number.
98.18(c) The purchaser is subject to the penalties imposed by section 84.774 if the
98.19purchaser fails to apply for transfer of ownership as provided under this subdivision.
98.20EFFECTIVE DATE.This section is effective January 1, 2016.

98.21    Sec. 5. Minnesota Statutes 2014, section 84.788, is amended by adding a subdivision
98.22to read:
98.23    Subd. 5a. Report of registration transfers. (a) Application for transfer of
98.24registration under this section must be made to the commissioner within 15 days of the
98.25date of transfer.
98.26(b) An application for transfer must be executed by the registered owner and the
98.27purchaser using a bill of sale that includes the vehicle serial number.
98.28(c) The purchaser is subject to the penalties imposed by section 84.774 if the
98.29purchaser fails to apply for transfer of registration as provided under this subdivision.
98.30EFFECTIVE DATE.This section is effective January 1, 2016.

98.31    Sec. 6. [84.8031] GRANT-IN-AID APPLICATIONS; REVIEW PERIOD.
99.1The commissioner must review an off-road vehicle grant-in-aid application and, if
99.2approved, commence public review of the application within 60 days after the completed
99.3application has been locally approved and submitted to an area parks and trails office. If
99.4the commissioner fails to approve or deny the application within 60 days after submission,
99.5the application is deemed approved and the commissioner must provide for a 30-day
99.6public review period.

99.7    Sec. 7. Minnesota Statutes 2014, section 84.82, subdivision 2a, is amended to read:
99.8    Subd. 2a. Nontrail use registration. A snowmobile may be registered for nontrail
99.9use. A snowmobile registered under this subdivision may not be operated on a state or
99.10grant-in-aid snowmobile trail. The fee for a nontrail use registration of a snowmobile with
99.11an engine displacement that is greater than 125 cubic centimeters is $45 for three years. A
99.12nontrail use registration is not transferable. In addition to other penalties prescribed by
99.13law, the penalty for violation of this subdivision is immediate revocation of the nontrail
99.14use registration. The commissioner shall ensure that the registration sticker provided for
99.15limited nontrail use is of a different color and is distinguishable from other snowmobile
99.16registration and state trail stickers provided.

99.17    Sec. 8. Minnesota Statutes 2014, section 84.82, subdivision 6, is amended to read:
99.18    Subd. 6. Exemptions. Registration is not required under this section for:
99.19    (1) a snowmobile owned and used by the United States, an Indian tribal government,
99.20another state, or a political subdivision thereof;
99.21    (2) a snowmobile registered in a country other than the United States temporarily
99.22used within this state;
99.23    (3) a snowmobile that is covered by a valid license of another state and has not been
99.24within this state for more than 30 consecutive days or that is registered by an Indian tribal
99.25government to a tribal member and has not been outside the tribal reservation boundary
99.26for more than 30 consecutive days;
99.27    (4) a snowmobile used exclusively in organized track racing events;
99.28    (5) a snowmobile in transit by a manufacturer, distributor, or dealer;
99.29    (6) a snowmobile at least 15 years old in transit by an individual for use only on
99.30land owned or leased by the individual; or
99.31    (7) a snowmobile while being used to groom a state or grant-in-aid trail; or
99.32    (8) a snowmobile with an engine displacement that is 125 cubic centimeters or less
99.33and the snowmobile is not operated on a state or grant-in-aid trail.

100.1    Sec. 9. Minnesota Statutes 2014, section 84.84, is amended to read:
100.284.84 TRANSFER OR TERMINATION OF SNOWMOBILE OWNERSHIP.
100.3(a) Within 15 days after the transfer of ownership, or any part thereof, other than a
100.4security interest, or the destruction or abandonment of any snowmobile, written notice
100.5thereof of the transfer or destruction or abandonment shall be given to the commissioner
100.6in such form as the commissioner shall prescribe.
100.7(b) An application for transfer must be executed by the registered owner and the
100.8purchaser using a bill of sale that includes the vehicle serial number.
100.9(c) The purchaser is subject to the penalties imposed by section 84.88 if the purchaser
100.10fails to apply for transfer of ownership as provided under this subdivision. Every owner
100.11or part owner of a snowmobile shall, upon failure to give such notice of destruction or
100.12abandonment, be subject to the penalties imposed by Laws 1967, chapter 876 section 84.88.
100.13EFFECTIVE DATE.This section is effective July 1, 2016.

100.14    Sec. 10. Minnesota Statutes 2014, section 84.92, subdivision 8, is amended to read:
100.15    Subd. 8. All-terrain vehicle or vehicle. "All-terrain vehicle" or "vehicle" means
100.16a motorized vehicle of with: (1) not less than three, but not more than six low pressure
100.17or non-pneumatic tires, that is limited in engine displacement of less than 1,000 cubic
100.18centimeters and; (2) a total dry weight of 2,000 pounds or less; and (3) a total width
100.19from outside of tire rim to outside of tire rim that is 65 inches or less. All-terrain vehicle
100.20includes a class 1 all-terrain vehicle and class 2 all-terrain vehicle. All-terrain vehicle does
100.21not include a golf cart, mini-truck, dune buggy, or go-cart or a vehicle designed and used
100.22specifically for lawn maintenance, agriculture, logging, or mining purposes.

100.23    Sec. 11. Minnesota Statutes 2014, section 84.92, subdivision 9, is amended to read:
100.24    Subd. 9. Class 1 all-terrain vehicle. "Class 1 all-terrain vehicle" means an
100.25all-terrain vehicle that has a total dry weight of less than 1,200 pounds width from outside
100.26of tire rim to outside of tire rim that is 50 inches or less.

100.27    Sec. 12. Minnesota Statutes 2014, section 84.92, subdivision 10, is amended to read:
100.28    Subd. 10. Class 2 all-terrain vehicle. "Class 2 all-terrain vehicle" means an
100.29all-terrain vehicle that has a total dry weight of 1,200 to 1,800 pounds width from outside
100.30of tire rim to outside of tire rim that is greater than 50 inches but not more than 65 inches.

100.31    Sec. 13. Minnesota Statutes 2014, section 84.922, subdivision 4, is amended to read:
101.1    Subd. 4. Report of transfers. A person who sells or transfers ownership of a
101.2vehicle registered under this section shall report the sale or (a) Application for transfer of
101.3ownership must be made to the commissioner within 15 days of the date of transfer.
101.4(b) An application for transfer must be executed by the registered owner and
101.5the purchaser on a form prescribed by the commissioner with the owner's registration
101.6certificate, using a bill of sale and a $4 fee that includes the vehicle serial number.
101.7(c) The purchaser is subject to the penalties imposed by section 84.774 if the
101.8purchaser fails to apply for transfer of ownership as provided under this subdivision.
101.9EFFECTIVE DATE.This section is effective January 1, 2016.

101.10    Sec. 14. Minnesota Statutes 2014, section 84.925, subdivision 5, is amended to read:
101.11    Subd. 5. Training requirements. (a) An individual who was born after July 1,
101.121987, and who is 16 years of age or older, must successfully complete the independent
101.13study course component of all-terrain vehicle safety training before operating an all-terrain
101.14vehicle on public lands or waters, public road rights-of-way, or state or grant-in-aid trails.
101.15    (b) An individual who is convicted of violating a law related to the operation of an
101.16all-terrain vehicle must successfully complete the independent study course component of
101.17all-terrain vehicle safety training before continuing operation of an all-terrain vehicle.
101.18    (c) An individual who is convicted for a second or subsequent excess speed, trespass,
101.19or wetland violation in an all-terrain vehicle season, or any conviction for careless or
101.20reckless operation of an all-terrain vehicle, must successfully complete the independent
101.21study and the testing and operating course components of all-terrain vehicle safety training
101.22before continuing operation of an all-terrain vehicle.
101.23    (d) An individual who receives three or more citations and convictions for violating a
101.24law related to the operation of an all-terrain vehicle in a two-year period must successfully
101.25complete the independent study and the testing and operating course components of
101.26all-terrain vehicle safety training before continuing operation of an all-terrain vehicle.
101.27    (e) An individual must present evidence of compliance with this subdivision before
101.28an all-terrain vehicle registration is issued or renewed. A person may use the following as
101.29evidence of meeting all-terrain vehicle safety certificate requirements:
101.30    (1) a valid all-terrain vehicle safety certificate issued by the commissioner;
101.31    (2) a driver's license that has a valid all-terrain vehicle safety certificate indicator
101.32issued under section 171.07, subdivision 18; or
101.33    (3) an identification card that has a valid all-terrain vehicle safety certificate indicator
101.34issued under section 171.07, subdivision 18.
102.1EFFECTIVE DATE.This section is effective January 1, 2016, or the date the new
102.2driver and vehicle services information technology system is implemented, whichever
102.3comes later.

102.4    Sec. 15. Minnesota Statutes 2014, section 84.9256, subdivision 1, is amended to read:
102.5    Subdivision 1. Prohibitions on youthful operators. (a) Except for operation on
102.6public road rights-of-way that is permitted under section 84.928 and as provided under
102.7paragraph (j), a driver's license issued by the state or another state is required to operate an
102.8all-terrain vehicle along or on a public road right-of-way.
102.9    (b) A person under 12 years of age shall not:
102.10    (1) make a direct crossing of a public road right-of-way;
102.11    (2) operate an all-terrain vehicle on a public road right-of-way in the state; or
102.12    (3) operate an all-terrain vehicle on public lands or waters, except as provided in
102.13paragraph (f).
102.14    (c) Except for public road rights-of-way of interstate highways, a person 12 years
102.15of age but less than 16 years may make a direct crossing of a public road right-of-way
102.16of a trunk, county state-aid, or county highway or operate on public lands and waters or
102.17state or grant-in-aid trails, only if that person possesses a valid all-terrain vehicle safety
102.18certificate issued by the commissioner and is accompanied by a person 18 years of age or
102.19older who holds a valid driver's license.
102.20    (d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years
102.21old, but less than 16 years old, must:
102.22    (1) successfully complete the safety education and training program under section
102.2384.925 , subdivision 1, including a riding component; and
102.24    (2) be able to properly reach and control the handle bars and reach the foot pegs
102.25while sitting upright on the seat of the all-terrain vehicle.
102.26    (e) A person at least 11 years of age may take the safety education and training
102.27program and may receive an all-terrain vehicle safety certificate under paragraph (d), but
102.28the certificate is not valid until the person reaches age 12.
102.29    (f) A person at least ten years of age but under 12 years of age may operate an
102.30all-terrain vehicle with an engine capacity up to 90cc on public lands or waters if
102.31accompanied by a parent or legal guardian.
102.32    (g) A person under 15 years of age shall not operate a class 2 all-terrain vehicle.
102.33    (h) A person under the age of 16 may not operate an all-terrain vehicle on public
102.34lands or waters or on state or grant-in-aid trails if the person cannot properly reach and
103.1control the handle bars and reach the foot pegs while sitting upright on the seat of the
103.2all-terrain vehicle.
103.3(i) Notwithstanding paragraph (c), a nonresident at least 12 years old, but less than
103.416 years old, may make a direct crossing of a public road right-of-way of a trunk, county
103.5state-aid, or county highway or operate an all-terrain vehicle on public lands and waters
103.6or state or grant-in-aid trails if:
103.7(1) the nonresident youth has in possession evidence of completing an all-terrain
103.8safety course offered by the ATV Safety Institute or another state as provided in section
103.984.925 , subdivision 3; and
103.10(2) the nonresident youth is accompanied by a person 18 years of age or older who
103.11holds a valid driver's license.
103.12(j) A person 12 years of age but less than 16 years of age may operate an all-terrain
103.13vehicle on the roadway, bank, slope, or ditch of a public road right-of-way as permitted
103.14under section 84.928 if the person:
103.15(1) possesses a valid all-terrain vehicle safety certificate issued by the commissioner;
103.16and
103.17(2) is accompanied by a parent or legal guardian on a separate all-terrain vehicle.

103.18    Sec. 16. Minnesota Statutes 2014, section 84.928, subdivision 1, is amended to read:
103.19    Subdivision 1. Operation on roads and rights-of-way. (a) Unless otherwise
103.20allowed in sections 84.92 to 84.928 or by local ordinance under paragraph (k), a person shall
103.21not operate an all-terrain vehicle in this state along or on the roadway, shoulder, or inside
103.22bank or slope of a public road right-of-way of a trunk, county state-aid, or county highway.
103.23    (b) A person may operate a class 1 all-terrain vehicle in the ditch or the outside
103.24bank or slope of a trunk, county state-aid, or county highway unless prohibited under
103.25paragraph (d) or (f).
103.26    (c) A person may operate a class 1 all-terrain vehicle designed by the manufacturer
103.27for off-road use to be driven by a steering wheel and equipped with operator and passenger
103.28seat belts and a roll-over protective structure or a class 2 all-terrain vehicle:
103.29    (1) within the public road right-of-way of a county state-aid or county highway on
103.30the right shoulder or the extreme right-hand side of the road and left turns may be made
103.31from any part of the road if it is safe to do so under the prevailing conditions, unless
103.32prohibited under paragraph (d) or (f);
103.33    (2) on the bank, slope, or ditch of a public road right-of-way of a trunk, county
103.34state-aid, or county highway but only to access businesses or make trail connections, and
104.1left turns may be made from any part of the road if it is safe to do so under the prevailing
104.2conditions, unless prohibited under paragraph (d) or (f); and
104.3    (3) on the bank or ditch of a public road right-of-way on a designated class 2
104.4all-terrain vehicle trail.
104.5    (d) A road authority as defined under section 160.02, subdivision 25, may after a
104.6public hearing restrict the use of all-terrain vehicles in the public road right-of-way under
104.7its jurisdiction.
104.8    (e) The restrictions in paragraphs (a), (d), (h), (i), and (j) do not apply to the
104.9operation of an all-terrain vehicle on the shoulder, inside bank or slope, ditch, or outside
104.10bank or slope of a trunk, interstate, county state-aid, or county highway:
104.11(1) that is part of a funded grant-in-aid trail; or
104.12(2) when the all-terrain vehicle is owned by or operated under contract with:
104.13(i) a road authority as defined under section 160.02, subdivision 25; or
104.14(ii) a publicly or privately owned utility or pipeline company and used for work
104.15on utilities or pipelines.
104.16    (f) The commissioner may limit the use of a right-of-way for a period of time if the
104.17commissioner determines that use of the right-of-way causes:
104.18    (1) degradation of vegetation on adjacent public property;
104.19    (2) siltation of waters of the state;
104.20    (3) impairment or enhancement to the act of taking game; or
104.21    (4) a threat to safety of the right-of-way users or to individuals on adjacent public
104.22property.
104.23    The commissioner must notify the road authority as soon as it is known that a closure
104.24will be ordered. The notice must state the reasons and duration of the closure.
104.25    (g) A person may operate an all-terrain vehicle registered for private use and used
104.26for agricultural purposes on a public road right-of-way of a trunk, county state-aid, or
104.27county highway in this state if the all-terrain vehicle is operated on the extreme right-hand
104.28side of the road, and left turns may be made from any part of the road if it is safe to do so
104.29under the prevailing conditions.
104.30    (h) A person shall not operate an all-terrain vehicle within the public road
104.31right-of-way of a trunk, county state-aid, or county highway from April 1 to August 1 in
104.32the agricultural zone unless the vehicle is being used exclusively as transportation to and
104.33from work on agricultural lands. This paragraph does not apply to an agent or employee
104.34of a road authority, as defined in section 160.02, subdivision 25, or the Department of
104.35Natural Resources when performing or exercising official duties or powers.
105.1    (i) A person shall not operate an all-terrain vehicle within the public road right-of-way
105.2of a trunk, county state-aid, or county highway between the hours of one-half hour after
105.3sunset to one-half hour before sunrise, except on the right-hand side of the right-of-way
105.4and in the same direction as the highway traffic on the nearest lane of the adjacent roadway.
105.5    (j) A person shall not operate an all-terrain vehicle at any time within the
105.6right-of-way of an interstate highway or freeway within this state.
105.7(k) A county, city, or town, acting through its governing body, may by ordinance
105.8allow a person to operate an all-terrain vehicle on a public road or street under its
105.9jurisdiction to access businesses and residences and to make trail connections.
105.10EFFECTIVE DATE.The amendments to paragraph (e) of this section are effective
105.11the day following final enactment.

105.12    Sec. 17. Minnesota Statutes 2014, section 84D.01, is amended by adding a subdivision
105.13to read:
105.14    Subd. 1a. Aquatic invasive species affirmation. "Aquatic invasive species
105.15affirmation" means an affirmation of the summary of the aquatic invasive species laws of
105.16this chapter that is part of watercraft licenses and nonresident fishing licenses, as provided
105.17in section 84D.106.
105.18EFFECTIVE DATE.This section is effective January 1, 2016.

105.19    Sec. 18. Minnesota Statutes 2014, section 84D.01, subdivision 13, is amended to read:
105.20    Subd. 13. Prohibited invasive species. "Prohibited invasive species" means a
105.21nonnative species that has been listed designated as a prohibited invasive species in a rule
105.22adopted by the commissioner under section 84D.12.

105.23    Sec. 19. Minnesota Statutes 2014, section 84D.01, subdivision 15, is amended to read:
105.24    Subd. 15. Regulated invasive species. "Regulated invasive species" means a
105.25nonnative species that has been listed designated as a regulated invasive species in a rule
105.26adopted by the commissioner under section 84D.12.

105.27    Sec. 20. Minnesota Statutes 2014, section 84D.01, subdivision 17, is amended to read:
105.28    Subd. 17. Unlisted nonnative species. "Unlisted nonnative species" means a
105.29nonnative species that has not been listed designated as a prohibited invasive species, a
105.30regulated invasive species, or an unregulated nonnative species in a rule adopted by the
105.31commissioner under section 84D.12.

106.1    Sec. 21. Minnesota Statutes 2014, section 84D.01, subdivision 18, is amended to read:
106.2    Subd. 18. Unregulated nonnative species. "Unregulated nonnative species" means
106.3a nonnative species that has been listed designated as an unregulated nonnative species in
106.4a rule adopted by the commissioner under section 84D.12.

106.5    Sec. 22. Minnesota Statutes 2014, section 84D.06, is amended to read:
106.684D.06 UNLISTED NONNATIVE SPECIES.
106.7    Subdivision 1. Process. A person may not introduce an unlisted nonnative aquatic
106.8plant or wild animal species unless:
106.9(1) the person has notified the commissioner in a manner and form prescribed by
106.10the commissioner;
106.11(2) the commissioner has made the classification determination required in
106.12subdivision 2 and listed designated the species as appropriate; and
106.13(3) the introduction is allowed under the applicable provisions of this chapter.
106.14    Subd. 2. Classification. (a) If the commissioner determines that a species for which
106.15a notification is received under subdivision 1 should be classified as a prohibited invasive
106.16species, the commissioner shall:
106.17(1) adopt a rule under section 84D.12, subdivision 3, listing designating the species
106.18as a prohibited invasive species; and
106.19(2) notify the person from which the notification was received that the species is
106.20subject to section 84D.04.
106.21(b) If the commissioner determines that a species for which a notification is
106.22received under subdivision 1 should be classified as an unregulated nonnative species,
106.23the commissioner shall:
106.24(1) adopt a rule under section 84D.12, subdivision 3, listing designating the species
106.25as an unregulated nonnative species; and
106.26(2) notify the person from which the notification was received that the species is not
106.27subject to regulation under this chapter.
106.28(c) If the commissioner determines that a species for which a notification is received
106.29under subdivision 1 should be classified as a regulated invasive species, the commissioner
106.30shall notify the applicant that the species is subject to the requirements in section 84D.07.

106.31    Sec. 23. Minnesota Statutes 2014, section 84D.10, subdivision 3, is amended to read:
106.32    Subd. 3. Removal and confinement. (a) A conservation officer or other licensed
106.33peace officer may order:
107.1    (1) the removal of aquatic macrophytes or prohibited invasive species from
107.2water-related equipment, including decontamination using hot water or high pressure
107.3equipment when available on site, before it the water-related equipment is transported or
107.4before it is placed into waters of the state;
107.5    (2) confinement of the water-related equipment at a mooring, dock, or other location
107.6until the water-related equipment is removed from the water;
107.7    (3) removal of water-related equipment from waters of the state to remove prohibited
107.8invasive species if the water has not been listed by the commissioner as being infested
107.9with that species; and
107.10    (4) a prohibition on placing water-related equipment into waters of the state when
107.11the water-related equipment has aquatic macrophytes or prohibited invasive species
107.12attached in violation of subdivision 1 or when water has not been drained or the drain plug
107.13has not been removed in violation of subdivision 4.; and
107.14    (5) decontamination of water-related equipment when available on site.
107.15    (b) An order for removal of prohibited invasive species under paragraph (a), clause
107.16(1), or decontamination of water-related equipment under paragraph (a), clause (5),
107.17may include tagging the water-related equipment and issuing a notice that specifies
107.18a time frame for completing the removal or decontamination and reinspection of the
107.19water-related equipment.
107.20    (b) (c) An inspector who is not a licensed peace officer may issue orders under
107.21paragraph (a), clauses (1), (3), and (4), and (5).

107.22    Sec. 24. [84D.106] AQUATIC INVASIVE SPECIES AFFIRMATION.
107.23Aquatic invasive species affirmation is required for all:
107.24(1) watercraft licenses issued under section 86B.401; and
107.25(2) all nonresident fishing licenses, as provided in section 97C.301, subdivision 2a.
107.26EFFECTIVE DATE.Clause (1) of this section is effective January 1, 2016, and
107.27clause (2) of this section is effective March 1, 2016.

107.28    Sec. 25. Minnesota Statutes 2014, section 84D.11, subdivision 1, is amended to read:
107.29    Subdivision 1. Prohibited invasive species. The commissioner may issue a permit
107.30for the propagation, possession, importation, purchase, or transport of a prohibited invasive
107.31species for the purposes of disposal, decontamination, control, research, or education.

107.32    Sec. 26. Minnesota Statutes 2014, section 84D.12, subdivision 1, is amended to read:
107.33    Subdivision 1. Required rules. The commissioner shall adopt rules:
108.1    (1) listing designating prohibited invasive species, regulated invasive species, and
108.2unregulated nonnative species of aquatic plants and wild animals;
108.3    (2) governing the application for and issuance of permits under this chapter, which
108.4rules may include a fee schedule; and
108.5    (3) governing notification under section 84D.08.

108.6    Sec. 27. Minnesota Statutes 2014, section 84D.12, subdivision 3, is amended to read:
108.7    Subd. 3. Expedited rules. The commissioner may adopt rules under section 84.027,
108.8subdivision 13
, that list designate:
108.9    (1) prohibited invasive species of aquatic plants and wild animals;
108.10    (2) regulated invasive species of aquatic plants and wild animals; and
108.11    (3) unregulated nonnative species of aquatic plants and wild animals.

108.12    Sec. 28. Minnesota Statutes 2014, section 84D.13, subdivision 5, is amended to read:
108.13    Subd. 5. Civil penalties. (a) A civil citation issued under this section must impose
108.14the following penalty amounts:
108.15    (1) for transporting aquatic macrophytes in violation of section 84D.09, $100;
108.16    (2) for placing or attempting to place into waters of the state water-related equipment
108.17that has aquatic macrophytes attached, $200;
108.18    (3) for unlawfully possessing or transporting a prohibited invasive species other
108.19than an aquatic macrophyte, $500;
108.20    (4) for placing or attempting to place into waters of the state water-related equipment
108.21that has prohibited invasive species attached when the waters are not listed by the
108.22commissioner as being infested with that invasive species, $500;
108.23    (5) for intentionally damaging, moving, removing, or sinking a buoy marking, as
108.24prescribed by rule, Eurasian water milfoil, $100;
108.25    (6) for failing to have drain plugs or similar devices removed or opened while
108.26transporting water-related equipment or for failing to remove plugs, open valves, and
108.27drain water from water-related equipment, other than marine sanitary systems, before
108.28leaving waters of the state, $100; and
108.29    (7) for transporting infested water off riparian property without a permit as required
108.30by rule, $200; and
108.31    (8) for failing to have aquatic invasive species affirmation displayed or available for
108.32inspection as provided in sections 86B.401 and 97C.301, subdivision 2a, $25.
109.1(b) A civil citation that is issued to a person who has one or more prior convictions
109.2or final orders for violations of this chapter is subject to twice the penalty amounts listed
109.3in paragraph (a).

109.4    Sec. 29. Minnesota Statutes 2014, section 84D.15, subdivision 3, is amended to read:
109.5    Subd. 3. Use of money in account. Money credited to the invasive species account
109.6in subdivision 2 shall be used for management of invasive species and implementation of
109.7this chapter as it pertains to invasive species, including control, public awareness, law
109.8enforcement, assessment and monitoring, management planning, habitat improvements,
109.9and research.

109.10    Sec. 30. Minnesota Statutes 2014, section 85.015, is amended by adding a subdivision
109.11to read:
109.12    Subd. 1e. Connection to state parks and recreation areas. Trails designated under
109.13this section may include connections to state parks or recreation areas that generally lie in
109.14between or within the vicinity of the waymarks specifically named in the designation.

109.15    Sec. 31. Minnesota Statutes 2014, section 85.015, is amended by adding a subdivision
109.16to read:
109.17    Subd. 6a. Mississippi Blufflands Trail; Goodhue and Wabasha Counties. (a)
109.18The Mississippi Blufflands Trail shall originate at the Cannon Valley Trail and thence
109.19extend generally southeasterly along the Mississippi River through Frontenac State Park in
109.20Goodhue County and continue through Goodhue and Wabasha Counties to the city of Lake
109.21City, and there terminate. The trail shall include connections to the Rattlesnake Bluff Trail.
109.22(b) The trail shall be developed primarily for riding and hiking.
109.23(c) In establishing, developing, maintaining, and operating the trail, the
109.24commissioner shall cooperate with local units of government and private individuals and
109.25groups whenever feasible.

109.26    Sec. 32. Minnesota Statutes 2014, section 85.015, subdivision 7, is amended to read:
109.27    Subd. 7. Blufflands Trail system, Fillmore, Olmsted, Winona, and Houston
109.28Counties. (a) The Root River Trail shall originate at Chatfield in Fillmore County, and
109.29thence extend easterly in the Root River Valley to the intersection of the river with
109.30Minnesota Trunk Highway No. 26 in Houston County, and extend to the Mississippi River.
109.31(b) Additional trails may be established that extend the Blufflands Trail system to
109.32include La Crescent, Hokah, Caledonia, and Spring Grove in Houston County; Preston,
110.1Harmony, Fountain, Wykoff, Spring Valley, Mabel, Prosper, Canton, and Ostrander,
110.2and connections to the Iowa border including a connection to Niagara Cave in Fillmore
110.3County; Rochester, Dover, Eyota, Stewartville, Byron, and Chester Woods County Park in
110.4Olmsted County; and Winona, Minnesota City, Rollingstone, Altura, Lewiston, Utica,
110.5St. Charles, and Elba in Winona County. In addition to the criteria in section 86A.05,
110.6subdivision 4
, these trails must utilize abandoned railroad rights-of-way where possible.
110.7(c) The trails shall be developed primarily for nonmotorized riding and hiking.

110.8    Sec. 33. Minnesota Statutes 2014, section 85.015, subdivision 28, is amended to read:
110.9    Subd. 28. Camp Ripley/Veterans State Trail, Crow Wing, Cass, and Morrison
110.10Counties. The trail shall originate at Crow Wing State Park in Crow Wing County at
110.11the southern end of the Paul Bunyan Trail and shall extend from Crow Wing State Park
110.12westerly to the city of Pillager, then southerly along the west side of Camp Ripley, then
110.13easterly along the south side of Camp Ripley across to the east side of the Mississippi
110.14River, and then northerly through Fort Ripley to Crow Wing State Park. A second segment
110.15of the trail shall be established that shall extend in a southerly direction and in close
110.16proximity to the Mississippi River from the southeasterly portion of the first segment of
110.17the trail to the city of Little Falls, and then terminate at the Soo Line Trail in Morrison
110.18County. Separation of motorized and nonmotorized corridors is acceptable as needed.

110.19    Sec. 34. [85.0506] LAKE VERMILION-SOUDAN UNDERGROUND MINE
110.20STATE PARK; HOISTS.
110.21The Lake Vermilion-Soudan Underground Mine State Park mine tour operation is
110.22exempt from sections 326B.163 to 326B.191. The federal mine code for hoists that lift
110.23people under Code of Federal Regulations, title 30, part 57, subpart R, applies to the
110.24Lake Vermilion-Soudan Underground Mine State Park hoist. The commissioner shall
110.25employ a hoist safety expert to conduct an annual inspection of the hoist system at the
110.26Lake Vermilion-Soudan Underground Mine State Park.

110.27    Sec. 35. Minnesota Statutes 2014, section 85.054, subdivision 12, is amended to read:
110.28    Subd. 12. Lake Vermilion-Soudan Underground Mine State Park. A state park
110.29permit is not required and a fee may not be charged for motor vehicle entry or parking
110.30at the visitor parking area of Soudan Underground Mine State Park and the Stuntz Bay
110.31boat house area.

110.32    Sec. 36. Minnesota Statutes 2014, section 85.32, subdivision 1, is amended to read:
111.1    Subdivision 1. Areas marked. The commissioner of natural resources is authorized
111.2in cooperation with local units of government and private individuals and groups when
111.3feasible to mark state water trails on the Little Fork, Big Fork, Minnesota, St. Croix,
111.4Snake, Mississippi, Red Lake, Cannon, Straight, Des Moines, Crow Wing, St. Louis, Pine,
111.5Rum, Kettle, Cloquet, Root, Zumbro, Pomme de Terre within Swift County, Watonwan,
111.6Cottonwood, Whitewater, Chippewa from Benson in Swift County to Montevideo in
111.7Chippewa County, Long Prairie, Red River of the North, Sauk, Otter Tail, Redwood,
111.8Blue Earth, Cedar, Shell Rock, and Crow Rivers which have historic and scenic values
111.9and to mark appropriately points of interest, portages, camp sites, and all dams, rapids,
111.10waterfalls, whirlpools, and other serious hazards which are dangerous to canoe, kayak,
111.11and watercraft travelers.

111.12    Sec. 37. Minnesota Statutes 2014, section 86B.401, subdivision 3, is amended to read:
111.13    Subd. 3. Licensing. (a) The license agent shall register the watercraft on receiving
111.14an application and the license fee. A license and registration sticker with a registration
111.15number shall be issued and must be affixed to the watercraft as prescribed by the
111.16commissioner of natural resources.
111.17(b) A license includes aquatic invasive species affirmation as provided in section
111.1884D.106. The aquatic invasive species affirmation portion of the license must be on board
111.19or available with the signed license certificate. The aquatic invasive species affirmation will
111.20be provided with an application for a new, transfer, duplicate, or renewal watercraft license.
111.21(c) The license is not valid unless signed by at least one owner.
111.22(d) Failure to complete the aquatic invasive species affirmation in this subdivision is
111.23subject to the penalty prescribed in section 84D.13, subdivision 5.
111.24EFFECTIVE DATE.This section is effective January 1, 2016.

111.25    Sec. 38. Minnesota Statutes 2014, section 87A.10, is amended to read:
111.2687A.10 TRAP SHOOTING SPORTS FACILITY GRANTS.
111.27The commissioner of natural resources shall administer a program to provide
111.28cost-share grants to local recreational shooting clubs or local units of government for up to
111.2950 percent of the costs of developing or rehabilitating trap shooting sports facilities for
111.30public use. A facility rehabilitated or developed with a grant under this section must
111.31be open to the general public at reasonable times and for a reasonable fee on a walk-in
111.32basis. The commissioner shall give preference to projects that will provide the most
111.33opportunities for youth.

112.1    Sec. 39. Minnesota Statutes 2014, section 88.17, subdivision 3, is amended to read:
112.2    Subd. 3. Special permits. The following special permits are required at all times,
112.3including when the ground is snow-covered:
112.4(a) Fire training. A permit to start a fire for the instruction and training of
112.5firefighters, including liquid fuels training, may be given by the commissioner or agent of
112.6the commissioner. Except for owners or operators conducting fire training in specialized
112.7industrial settings pursuant to applicable federal, state, or local standards, owners
112.8or operators conducting open burning for the purpose of instruction and training of
112.9firefighters with regard to structures must follow the techniques described in a document
112.10entitled: Structural Burn Training Procedures for the Minnesota Technical College System
112.11use only fuel materials as outlined in the current edition of National Fire Protection
112.12Association 1403, Standard on Live Fire Training Evolutions, and obtain the applicable
112.13live burn documents in accordance with the current edition of the Board of Firefighter
112.14Training and Education's live burn plan established according to section 299N.02,
112.15subdivision 3, clause (2).
112.16(b) Permanent tree and brush open burning sites. A permit for the operation of
112.17a permanent tree and brush burning site may be given by the commissioner or agent of
112.18the commissioner. Applicants for a permanent open burning site permit shall submit a
112.19complete application on a form provided by the commissioner. Existing permanent tree
112.20and brush open burning sites must submit for a permit within 90 days of the passage of
112.21this statute for a burning permit. New site applications must be submitted at least 90
112.22days before the date of the proposed operation of the permanent open burning site. The
112.23application must be submitted to the commissioner and must contain:
112.24(1) the name, address, and telephone number of all owners of the site proposed for
112.25use as the permanent open burning site;
112.26(2) if the operator for the proposed permanent open burning site is different from the
112.27owner, the name, address, and telephone number of the operator;
112.28(3) a general description of the materials to be burned, including the source and
112.29estimated quantity, dimensions of the site and burn pile areas, hours and dates of operation,
112.30and provisions for smoke management; and
112.31(4) a topographic or similarly detailed map of the site and surrounding area within
112.32a one-mile circumference showing all structures that might be affected by the operation
112.33of the site.
112.34Only trees, tree trimmings, or brush that cannot be disposed of by an alternative
112.35method such as chipping, composting, or other method shall be permitted to be burned
112.36at a permanent open burning site. A permanent tree and brush open burning site must
113.1be located and operated so as not to create a nuisance or endanger water quality. The
113.2commissioner shall revoke the permit or order actions to mitigate threats to public health,
113.3safety, and the environment in the event that permit conditions are violated.

113.4    Sec. 40. Minnesota Statutes 2014, section 88.49, subdivision 3, is amended to read:
113.5    Subd. 3. Recording Provisions of auxiliary forest contract to run with the land.
113.6The commissioner shall submit such contract in recordable form to the owner of the land
113.7covered thereby. If the owner shall indicate to the commissioner an unwillingness to
113.8execute the same, or if the owner or any of the persons having an interest therein or lien
113.9thereon fail to execute it within 60 days from the time of its submission to the owner, all
113.10proceedings relating to the making of this land into an auxiliary forest shall be at an end.
113.11When the contract shall have been executed it shall forthwith be recorded in the
113.12office of the county recorder at the expense of the owner or, if the title to the land be
113.13registered, with the registrar of titles. At the time the contract is recorded with the county
113.14recorder for record the owner, at the owner's expense, shall record with the county recorder
113.15a certificate from the county attorney to the effect that no change in record title thereof has
113.16occurred, that no liens or other encumbrances have been placed thereon, and that no taxes
113.17have accrued thereon since the making of the previous certificate. It shall be the duty of
113.18the county attorney to furnish this certificate without further compensation.
113.19All the provisions of the a recorded contract shall be for an auxiliary forest are deemed
113.20covenants running with the land from the date of the filing of the contract for record.

113.21    Sec. 41. Minnesota Statutes 2014, section 88.49, subdivision 4, is amended to read:
113.22    Subd. 4. Effect. Upon the filing of the contract for record, the land therein described
113.23in the contract shall become, and, during the life of the contract, remain and be, an
113.24auxiliary forest entitled to all the benefits and subject to all the restrictions of sections
113.2588.47 88.49 to 88.53, all of which shall be deemed a. These sections are part of the
113.26obligation of the contract and shall be are inviolate, subject only to the police power of the
113.27state, to the power of eminent domain, and to the right of the parties thereto by mutual
113.28agreement to make applicable to the contract any laws of the state enacted subsequent to its
113.29the execution and filing. This provision shall not be so construed as to prevent amendatory
113.30or supplementary legislation which does of the contract. Laws enacted subsequent to
113.31the date of execution of the contract are applicable to the contract, so long as the laws
113.32do not impair these the contract rights of the parties thereto, or as to prevent amendatory
113.33or supplementary legislation in respect of the culture, care, or management of the lands
113.34included in any such contract signatories of the contract or their successors or assigns.

114.1    Sec. 42. Minnesota Statutes 2014, section 88.49, subdivision 5, is amended to read:
114.2    Subd. 5. Cancellation. Upon the failure of (a) If the owner fails to faithfully to
114.3fulfill and perform such the contract or, any provision thereof of the contract, or any
114.4requirement of sections 88.47 88.49 to 88.53, or any rule adopted by the commissioner
114.5thereunder adopts under those sections, the commissioner may cancel the contract in
114.6the manner herein provided. The commissioner shall give to the owner, in the manner
114.7prescribed in section 88.48, subdivision 4, 60 days' notice of a hearing thereon at which
114.8the owner may appear and show cause, if any, why the contract should not be canceled.
114.9The commissioner shall thereupon then determine whether the contract should be canceled
114.10and make an order to that effect. Notice of the commissioner's determination and the
114.11making of the order shall be given to The commissioner shall give the owner in the manner
114.12provided in section 88.48, subdivision 4 notice of the commissioner's determination and
114.13order. On determining If the commissioner determines that the contract should be canceled
114.14and no appeal therefrom be taken the owner does not appeal the determination as provided
114.15in subdivision 7, the commissioner shall send notice thereof of the cancellation to the
114.16auditor of the county and to the town clerk of the town affected and file with the recorder a
114.17certified copy of the order, who. The recorder shall forthwith note the cancellation upon
114.18the record thereof, and thereupon the land therein described in the contract shall cease to
114.19be an auxiliary forest and, together with the timber thereon on the land, become liable
114.20to for all taxes and assessments that otherwise would have been levied against it had it
114.21never been an auxiliary forest the land from the time of the making of the contract, any
114.22notwithstanding provisions of the statutes of limitation to the contrary notwithstanding,
114.23less. The amount of taxes paid under the provisions of section 88.51, subdivision 1,
114.24together with interest on such taxes and assessments at six percent per annum, but without
114.25penalties, must be subtracted from the tax owed by the owner.
114.26(b) The commissioner may in like manner and with like effect cancel the contract
114.27upon written application of the owner.
114.28(c) The commissioner shall cancel any the contract if the owner has made successful
114.29application successfully applied under sections 290C.01 to 290C.11, the Sustainable Forest
114.30Incentive Act, sections 290C.01 to 290C.11, and has paid to the county treasurer the tax
114.31difference between the amount which that would have been paid had the land under contract
114.32been subject to the Minnesota Tree Growth Tax Law and the Sustainable Forest Incentive
114.33Act from the date of the recording of the contract and the amount actually paid under
114.34section 88.51, subdivisions subdivision 1, and Minnesota Statutes 2014, section 88.51,
114.35subdivision 2. This tax difference must be calculated based on the years the lands would
114.36have been taxed under the Tree Growth Tax Law and the Sustainable Forest Incentive Act.
115.1The sustainable forest tax difference is net of the incentive payment of section 290C.07.
115.2If the amount which that would have been paid, had if the land under contract had been
115.3under the Minnesota Tree Growth Tax Law and the Sustainable Forest Incentive Act from
115.4the date of the filing of the contract, was filed is less than the amount actually paid under
115.5the contract, the cancellation shall be made without further payment by the owner.
115.6When (d) If the execution of any the contract creating an auxiliary forest shall have
115.7been is procured through fraud or deception practiced upon on the county board or, the
115.8commissioner, or any other person or body representing the state, it may be canceled
115.9cancel it upon suit brought by the attorney general at the direction of the commissioner.
115.10This cancellation shall have has the same effect as the cancellation of a contract by the
115.11commissioner.

115.12    Sec. 43. Minnesota Statutes 2014, section 88.49, subdivision 6, is amended to read:
115.13    Subd. 6. Assessment after cancellation. (a) For the purpose of levying such taxes,
115.14the county auditor shall, immediately upon receipt of receiving notice of the cancellation
115.15of any a contract creating an auxiliary forest, direct the local assessor to assess the lands
115.16within the forest, excluding the value of merchantable timber and minerals and other
115.17things of value taxed under the provisions of Minnesota Statutes 2014, section 88.51,
115.18subdivision 2
, as of for each of the years during which the lands have been were included
115.19within the auxiliary forest. The local assessor shall forthwith make the assessment and
115.20certify the same to the county auditor. The county auditor shall thereupon levy a tax on the
115.21assessable value of the land as, fixed by section 273.13, for each of the years during which
115.22the land has been was within an auxiliary forest, at the rate at which other real estate
115.23within the taxing district was taxed in those years. The tax so assessed and levied against
115.24any land shall be is a first and prior lien upon the land and upon all timber and forest
115.25products growing, grown, or cut thereon on the land and removed therefrom from the land.
115.26These taxes shall must be enforced in the same manner as other taxes on real estate are
115.27enforced and, in addition thereto, the lien of the tax on forest products cut or removed
115.28from this land shall must be enforced by the seizure and sale of the forest products.
115.29(b) No person shall, after the mailing by the commissioner, as provided in subdivision
115.305, of notice of hearing on the cancellation of a the contract making any lands an auxiliary
115.31forest, cut or remove from these lands any timber or forest products growing, grown, or
115.32cut thereon until all taxes levied under this subdivision shall have been are paid, or, in the
115.33event such if the levy shall is not have been completed, until the owner shall have has given
115.34a bond payable to the county, with sureties approved by the county auditor, in such the
116.1amount as the county auditor shall deem deems ample for the payment of all taxes that may
116.2be levied thereon under this subdivision, conditioned for the payment of such the taxes.
116.3(c) Any person who shall violate any of the provisions of violates this subdivision
116.4shall be is guilty of a felony.

116.5    Sec. 44. Minnesota Statutes 2014, section 88.49, subdivision 7, is amended to read:
116.6    Subd. 7. Appeal. (a) The owner may appeal from any cancellation order of the
116.7commissioner to the district court of the county wherein where the land is situate, located
116.8by serving notice of appeal on the commissioner and filing the same with the court
116.9administrator of the district court within 30 days after the date of mailing of notice
116.10of such order.
116.11(b) The appeal shall must be tried between the state of Minnesota and the owner by
116.12the court as a suit for the rescission of a contract is tried, and the judgment of the court
116.13shall be is substituted for the cancellation order of the commissioner, and shall be is final.

116.14    Sec. 45. Minnesota Statutes 2014, section 88.49, subdivision 8, is amended to read:
116.15    Subd. 8. Proceedings in lieu of cancellation. If cause for the cancellation of any a
116.16contract shall exist exists, the commissioner may, in lieu of canceling such the contract,
116.17perform the terms and conditions, other than the payment of that the owner was required
116.18to perform, except that the commissioner may not pay any taxes, that the owner was
116.19required, by the contract or by law or by the rules of the commissioner, to be performed by
116.20the owner, and may for that purpose to have paid by law. The commissioner may use any
116.21available moneys appropriated for the maintenance of the commissioner's division and
116.22any other lawful means to perform all other terms and conditions required to maintain the
116.23auxiliary forest status. The commissioner shall, on December 1 each year, certify to the
116.24auditor of each county the amount of moneys thus expended on and the value of services
116.25thus rendered in respect of any lands therein for land in the county since December 1 of
116.26the preceding year. The county auditor shall forthwith assess and levy the amount shown
116.27by this certificate against the lands described therein. This amount shall bear bears interest
116.28at the rate of six percent per annum and shall be is a lien upon the lands described therein,
116.29and. The collection thereof of the tax must be enforced in the same manner as taxes
116.30levied under section 88.52, subdivision 1;, and, if such the tax be is not sooner paid, it
116.31shall must be added to, and the payment thereof enforced with, the yield tax imposed
116.32under section 88.52, subdivision 2.

116.33    Sec. 46. Minnesota Statutes 2014, section 88.49, subdivision 9, is amended to read:
117.1    Subd. 9. Auxiliary forests; withdrawal of land from. (a) Land needed for other
117.2purposes may be withdrawn from an auxiliary forest as herein provided. The owner may
117.3submit a verified application therefor in a form prescribed by the commissioner of natural
117.4resources may be made by the owner to the county board of the county in which the land is
117.5situated, describing the land and stating the purpose of withdrawal. Like proceedings shall
117.6be had upon the application as upon an application for the establishment of an auxiliary
117.7forest, except that consideration need be given only to the questions to be determined as
117.8provided in this subdivision. The county board shall consider the application and hear any
117.9matter offered in support of or in opposition to the application. The county board shall
117.10make proper record of its action upon the application. If the application is rejected, the
117.11county board shall prepare a written statement stating the reasons for the rejection within
117.1230 days of the date of rejection. If the application is rejected, the county auditor shall,
117.13within 30 days of the rejection, endorse the rejection on the application and return it,
117.14together with a copy of the written statement prepared by the county board stating the
117.15reasons for rejection to the applicant. The rejected application and written statement must
117.16be sent to the owner by certified mail at the address given in the application.
117.17(b) If the application is disapproved as to only a part of the lands described, the
117.18county auditor shall notify the applicant in the same manner as if the application were
117.19rejected. The applicant may amend the application within 60 days after the notice is
117.20mailed. If it is not amended, the application is deemed rejected.
117.21(c) If the county board shall determine determines that the land proposed to be
117.22withdrawn is needed and is suitable for the purposes set forth in the application, and
117.23that the remaining land in the auxiliary forest is suitable and sufficient for the purposes
117.24thereof of the auxiliary forest as provided by law, the board may, in its discretion, grant
117.25the application, subject to the approval of the commissioner. Upon such approval a
117.26supplemental contract evidencing the withdrawal shall be executed, filed, and recorded
117.27or registered as the case may require, in like manner as an original auxiliary forest
117.28contract. Thereupon by both the county board and the commissioner, the county auditor
117.29shall notify the applicant and the commissioner. Upon notice from the county auditor,
117.30the commissioner shall cause to be prepared a supplemental contract executed by the
117.31commissioner on behalf of the state and by the owner of the fee title or the holder of
117.32a state deed and by all other persons having any liens on the land and witnessed and
117.33acknowledged as provided by law for the execution of recordable deeds of conveyance.
117.34Notices sent by certified mail to the owner in fee at the address given in the application
117.35is deemed notice to all persons executing the supplemental contract. The supplemental
117.36contract must be prepared by the director of the Division of Forestry on a recordable
118.1form approved by an attorney appointed by the commissioner. Every supplemental
118.2contract must be approved by the Executive Council. The commissioner shall submit the
118.3supplemental contract to the owner of the land. If the owner indicates to the commissioner
118.4an unwillingness to execute the supplemental contract, or if the owner or any of the
118.5persons with an interest in the land or a lien upon the land fail to execute the contract
118.6within 60 days from the time of submission of the contract to the owner for execution, all
118.7proceedings relating back to the withdrawal of the land from an auxiliary forest shall be at
118.8an end. When the supplemental contract is executed, it must be recorded in the office of
118.9the county recorder at the expense of the owner or, if the title to the land is registered, the
118.10supplemental contract must be recorded with the registrar of titles. At the time the contract
118.11is recorded with the county recorder, the owner, at the owner's expense, shall record with
118.12the county recorder a certificate from the county attorney to the effect that no change in
118.13record title to the land has occurred, that no liens or other encumbrances have been placed
118.14on the land, and that no taxes have accrued on the land since the making of the previous
118.15certificate. The county attorney must furnish this certificate without further compensation.
118.16Upon execution and recording of the supplemental contract, the land described in the
118.17supplemental contract shall cease that is to be withdrawn from the auxiliary forest ceases
118.18to be part of the auxiliary forest, and, together with the timber thereon, shall be the owner
118.19is liable to taxes and assessments of the withdrawn portion together with the timber on the
118.20withdrawn portion in like manner as upon cancellation of an auxiliary forest contract.

118.21    Sec. 47. Minnesota Statutes 2014, section 88.49, subdivision 11, is amended to read:
118.22    Subd. 11. Auxiliary forests; transfer of title; procedure on division. The title to
118.23the land in an auxiliary forest or any part thereof of an auxiliary forest is subject to transfer
118.24in the same manner as the title to other real estate, subject to the auxiliary forest contract
118.25therefor and to applicable provisions of law. In case If the ownership of such a an auxiliary
118.26forest is divided into two or more parts by any transfer or transfers of title and the owners
118.27of all such the parts desire to have the same parts made separate auxiliary forests, they the
118.28owners may join in a verified application therefor to the county board of the county in
118.29which the forest is situated in a form prescribed by the commissioner of natural resources.
118.30If the county board determines that each of the parts into which the forest has been divided
118.31is suitable and sufficient for a separate auxiliary forest as provided by law, it may, in
118.32its discretion, grant the application, subject to the approval of the commissioner. Upon
118.33such approval, the commissioner shall prepare a new auxiliary forest contract for each
118.34part transferred, with like provisions and for the remainder of the same term as the prior
118.35contract in force for the entire forest at the time of the transfer, and shall also prepare a
119.1modification of such the prior contract, eliminating therefrom the part or parts of the land
119.2transferred but otherwise leaving the remaining land subject to all the provisions of such
119.3the contract. The new contract or contracts and modification of the prior contract shall
119.4must be executed and otherwise dealt with in like manner as provided for an original a
119.5supplemental auxiliary forest contract in subdivision 9, but no such instrument shall must
119.6take effect until all of them, covering together all parts of the forest existing before the
119.7transfer, have been executed, filed, and recorded or registered, as the case may require.
119.8Upon the taking effect of When all such the instruments take effect, the owner of the
119.9forest prior to the transfer shall be is divested of all rights and relieved from all liabilities
119.10under the contract then in force with respect to the parts transferred except such those as
119.11may have existed or accrued at the time of the taking effect of such instruments, and
119.12thereafter the several tracts into which the forest has been divided and the respective
119.13owners thereof shall be are subject to the new contract or contracts or the modified prior
119.14contract relating thereto, as the case may be, as provided for an original auxiliary forest
119.15contract. The provisions of this subdivision shall not supersede or affect the application
119.16of any other provision of law to any auxiliary forest which is divided by transfer of title
119.17unless the procedure herein authorized is fully consummated.

119.18    Sec. 48. Minnesota Statutes 2014, section 88.491, subdivision 2, is amended to read:
119.19    Subd. 2. Effect of expired contract. When auxiliary forest contracts expire,
119.20or prior to expiration by mutual agreement between the land owner landowner and the
119.21appropriate county office, the lands previously covered by an auxiliary forest contract
119.22automatically qualify for inclusion under the provisions of the Sustainable Forest Incentive
119.23Act; provided that when such lands are included in the Sustainable Forest Incentive Act
119.24prior to expiration of the auxiliary forest contract, they will be transferred and a tax paid as
119.25provided in section 88.49, subdivision 5, upon application and inclusion in the sustainable
119.26forest incentive program. The land owner landowner shall pay taxes in an amount equal to
119.27the difference between:
119.28(1) the sum of:
119.29(i) the amount which would have been paid from the date of the recording of the
119.30contract had the land under contract been subject to the Minnesota Tree Growth Tax
119.31Law; plus
119.32(ii) beginning with taxes payable in 2003, the taxes that would have been paid if the
119.33land had been enrolled in the sustainable forest incentive program; and
119.34(2) the amount actually paid under section 88.51, subdivisions subdivision 1, and
119.35Minnesota Statutes 2014, section 88.51, subdivision 2.

120.1    Sec. 49. Minnesota Statutes 2014, section 88.50, is amended to read:
120.288.50 TAXATION.
120.3Every auxiliary forest in this state shall must be taxed in the manner and to the extent
120.4hereinafter provided according to sections 88.49 to 88.53 and not otherwise. Except as
120.5expressly permitted by sections 88.47 88.49 to 88.53, no auxiliary forest shall be taxed
120.6for, or in any manner, directly or indirectly made to contribute to, or become liable for
120.7the payment of, any tax or assessment, general or special, or any bond, certificate of
120.8indebtedness, or other public obligation of any name or kind, made, issued, or created
120.9subsequent to the filing of the contract creating the auxiliary forest, provided that
120.10temporary buildings, structures, or other fixtures of whatsoever kind located upon land
120.11within an auxiliary forest shall be valued and assessed as personal property and classified
120.12as class 3 under the general system of ad valorem taxation. In any proceeding for the
120.13making of a special improvement under the laws of this state by which any auxiliary forest
120.14will be benefited, the owner thereof may subject the lands therein to assessment therefor in
120.15the manner provided by law, by filing the owner's written consent in writing to the making
120.16of the assessment in the tribunal in which the proceeding is pending, whereupon. The lands
120.17shall for the purposes of the improvement and assessment not be treated as lands not in an
120.18auxiliary forest; but the lien of any assessment so levied on lands in any auxiliary forest shall
120.19be is subject to the provisions of the contract creating the auxiliary forest and subordinate
120.20to the lien of any tax imposed under the provisions of sections 88.47 88.49 to 88.53.

120.21    Sec. 50. Minnesota Statutes 2014, section 88.51, subdivision 1, is amended to read:
120.22    Subdivision 1. Annual tax, ten cents per acre. (a) From and after the filing of the
120.23contract creating any tract of land an auxiliary forest under sections 88.47 88.49 to 88.53
120.24and hereafter upon any tract heretofore created as an auxiliary forest, the surface of the
120.25land therein, exclusive of mineral or anything of value thereunder, shall must be taxed
120.26annually at the rate of 10 cents per acre. This tax shall must be levied and collected, and
120.27the payment thereof of the tax, with penalties and interest, enforced in the same manner as
120.28other taxes on real estate, and shall must be credited to the funds of the taxing districts
120.29affected in the proportion of their interest in the taxes on this land if it had not been so
120.30made an auxiliary forest; provided, that such tax shall be is due in full on or before May
120.3131, after the levy thereof. Failure to pay when due any tax so levied shall be is cause
120.32for cancellation of the contract.
120.33(b) The levy upon the land of the taxes provided for by section 88.49, subdivision 5,
120.34upon the cancellation of a contract, shall discharge and annul discharges and annuls all
120.35unpaid taxes levied or assessed thereon on the land.

121.1    Sec. 51. Minnesota Statutes 2014, section 88.51, subdivision 3, is amended to read:
121.2    Subd. 3. Determination of estimated market value. In determining the net tax
121.3capacity of property within any taxing district, the value of the surface of lands within any
121.4auxiliary forest therein in the taxing district, as determined by the county board under the
121.5provisions of section 88.48, subdivision 3, shall, for all purposes except the levying of
121.6taxes on lands within any such forest, be deemed the estimated market value thereof of
121.7those surface lands.

121.8    Sec. 52. Minnesota Statutes 2014, section 88.52, subdivision 2, is amended to read:
121.9    Subd. 2. Examination, report. When any timber growing or standing in any
121.10auxiliary forest shall have become is suitable for merchantable forest products, the
121.11commissioner shall, at the written request of the owner, a copy of which shall at the time be
121.12filed in the office of the county auditor, make an examination of the timber and designate
121.13for the owner the kind and number of trees most suitable to be cut if in the judgment of
121.14the commissioner there be any, and. The cutting and removal of these designated trees so
121.15designated shall must be in accordance with the instructions of the commissioner. The
121.16commissioner shall inspect the cutting or removal and determine whether it or the manner
121.17of its performance constitute a violation of the terms of the contract creating the auxiliary
121.18forest or of the laws applicable thereto laws, or of the instructions of the commissioner
121.19relative to the cutting and removal. Any such violation shall be is ground for cancellation
121.20of the contract by the commissioner; otherwise the contract shall continue continues in
121.21force for the remainder of the period therein stated in the contract, regardless of the cutting
121.22and removal. Within 90 days after the completion of any cutting or removal operation,
121.23the commissioner shall make a report of findings thereon and transmit copies of such the
121.24report to the county auditor and the surveyor general.

121.25    Sec. 53. Minnesota Statutes 2014, section 88.52, subdivision 3, is amended to read:
121.26    Subd. 3. Kinds, permit, scale report, assessment and payment of tax. (a) Upon
121.27the filing of the owner's written request of the owner as provided in subdivision 2, the
121.28director of lands and forestry, with the county board or the county land commissioner,
121.29shall determine within 30 days the kinds, quantities, and value on the stump of the timber
121.30proposed to be cut.
121.31Before the cutting is to begin, the director of lands and forestry shall file with the
121.32county auditor a report showing the kinds, quantities, and value of the timber proposed to
121.33be cut or removed and approved by the director of lands and forestry for cutting within
121.34two years after the date of approval of the report by the director of lands and forestry. The
122.1county auditor shall assess and levy the estimated yield tax thereon, make proper record
122.2of this assessment and levy in the auditor's office, and notify the owner of the auxiliary
122.3forest of the tax amount thereof. The owner shall, before any timber in the forest is cut or
122.4removed, give a bond payable to the state of Minnesota, or in lieu thereof, a deposit in
122.5cash with the county treasurer, in the amount required by the report, which shall be and not
122.6less than 150 percent of the amount of the levy, conditioned for the payment of all taxes on
122.7the timber to be cut or removed. Upon receipt of notification from the county auditor that
122.8the bond or cash requirement has been deposited, the director of lands and forestry will
122.9issue a cutting permit in accordance with the report. The owner shall keep an accurate
122.10count or scale of all timber cut. On or before the fifteenth day of April 15 following
122.11issuance of such the cutting permit, and on or before the fifteenth day of April 15 of each
122.12succeeding year in which any merchantable wood products were cut on auxiliary forest
122.13lands prior to the termination of such the permit, the owner of the timber covered by the
122.14permit shall file with the director of lands and forestry a sworn statement, submitted in
122.15duplicate, on a form prepared by the director of lands and forestry, one copy of which
122.16shall must be transmitted to the county auditor, specifying the quantity and value of each
122.17variety of timber and kind of product cut during the preceding year ending on March 31,
122.18as shown by the scale or measurement thereof made on the ground as cut, skidded, or
122.19loaded as the case may be. If no such scale or measurement shall have been was made on
122.20the ground, an estimate thereof shall must be made and such estimate corrected by the first
122.21scale or measurement, made in the due course of business, and such. The correction must
122.22at once be filed with the director of lands and forestry who shall immediately transmit it to
122.23the county auditor. On or before the fifteenth day of May 15 following the filing of the
122.24sworn statement covering the quantity and value of timber cut under an authorized permit,
122.25the auditor shall assess and levy a yield (severance) tax, according to Minnesota Statutes
122.262014, section 88.51, subdivision 2, of the timber cut during the year ending on the March
122.2731st 31 preceding the date of assessing and levying this tax. This tax is payable and must
122.28be paid to the county treasurer on or before the following May 31 next following. Copies
122.29of the yield (severance) tax assessment and of the yield (severance) tax payment shall must
122.30be filed with the director of lands and forestry and the county auditor. Except as otherwise
122.31provided, all yield (severance) taxes herein provided for shall must be levied and collected,
122.32and payment thereof, with penalties and interest, enforced in the same manner as taxes
122.33imposed under the provisions of section 88.51, subdivision 1, and shall must be credited to
122.34the funds of the taxing districts affected in the proportion of their interests in the taxes on
122.35the land producing the yield (severance) tax. At any time On deeming it necessary, the
122.36director of lands and forestry may order an inspection of any or all cutting areas within
123.1an auxiliary forest and also may require the owner of the auxiliary forest to produce for
123.2inspection by the director of lands and forestry of any or all cutting records pertaining to
123.3timber cutting operations within an auxiliary forest for the purpose of determining the
123.4accuracy of scale or measurement reports, and if intentional error in scale or measurement
123.5reports is found to exist, shall levy and assess a tax triple the yield (severance) tax on the
123.6stumpage value of the timber cut in excess of the quantity and value reported.
123.7(b) The following alternative method of assessing and paying annually the yield tax
123.8on an auxiliary forest is to be available to an auxiliary forest owner upon application and
123.9upon approval of the county board of the county within which the auxiliary forest is located.
123.10For auxiliary forests entered under this subdivision paragraph, the county auditor
123.11shall assess and levy the yield tax by multiplying the acreage of each legal description
123.12included within the auxiliary forest by the acre quantity of the annual growth by species,
123.13calculated in cords, or in thousands of feet board measure Minnesota standard log scale
123.14rule, whichever is more reasonably usable, for the major species found in each type by
123.15the from year-to-year appraised stumpage prices for each of these species, used by the
123.16Division of Lands and Forestry, Department of Natural Resources, in selling trust fund
123.17timber located within the district in which the auxiliary forest is located. The assessed
123.18value of the annual growth of the auxiliary forest, thus determined, shall be is subject to
123.19a ten percent of stumpage value yield tax, payable annually on or before May 31. In all
123.20other respects the assessment, levying and collection of the yield tax, as provided for in
123.21this subdivision shall must follow the procedures specified in clause paragraph (a).
123.22Forest owners operating under this subdivision shall be paragraph are subject to all
123.23other provisions of the auxiliary forest law except such the provisions of clause paragraph
123.24(a) as that are in conflict with this subdivision paragraph. Penalties for intentional failure
123.25by the owner to report properly the quantity and value of the annual growth upon an
123.26auxiliary forest entered under this subdivision paragraph and for failure to pay the yield
123.27tax when due shall be are the same as the penalties specified in other subdivisions of this
123.28law for like failure to abide by its provisions.
123.29To qualify for the assessment and levying of the yield tax by this method, the
123.30owner of the forest requesting this method of taxation must submit a map or maps
123.31and a tabulation in acres and in quantity of growth by legal descriptions showing the
123.32division of the area covered by the auxiliary forest for which this method of taxation is
123.33requested into the following forest types, namely: white and Norway red pine; jack pine;
123.34aspen-birch; spruce-balsam fir; swamp black spruce; tamarack; cedar; upland hardwoods;
123.35lowland hardwoods; upland brush and grass (temporarily nonproductive); lowland brush
123.36(temporarily nonproductive); and permanently nonproductive (open bogs, stagnant
124.1swamps, rock outcrops, flowage, etc.). Definition of these types and determination of the
124.2average rate or rates of growth (in cords or thousand feet, board measure, Minnesota
124.3standard log scale rule, which ever whichever is more logically applicable for each of
124.4them) shall must be made by the director of the Division of Lands and Forestry, Minnesota
124.5Department of Natural Resources, with the advice and assistance of the land commissioner
124.6of the county in which the auxiliary forest is located; the director of the United States
124.7Forest Service's North Central Forest Experiment Station; and the director of the School of
124.8Forestry, University of Minnesota. Before the approval of the application of the owner of
124.9an auxiliary forest to have the auxiliary or proposed auxiliary forest taxed under provisions
124.10of this subdivision paragraph is submitted to the county board, the distribution between
124.11types of the area as shown on the maps and in the tabulations submitted by the owner of the
124.12auxiliary or proposed auxiliary forest shall must be examined and their accuracy determined
124.13by the director of the Division of Lands and Forestry, Department of Natural Resources,
124.14with the assistance of the county board of the county in which the auxiliary forest is located.
124.15During the life of the auxiliary forest, contract timber cutting operations within the
124.16various types shown upon the type map accepted as a part of the approved auxiliary forest
124.17application shall do not bring about a reclassification of the forest types shown upon that
124.18map or those maps until after the passage of ten years following the termination of said the
124.19timber cutting operations and then only upon proof of a change in type.

124.20    Sec. 54. Minnesota Statutes 2014, section 88.52, subdivision 4, is amended to read:
124.21    Subd. 4. Hearing, procedure. The owner of any land or timber upon which a yield
124.22tax is assessed and levied as provided in this section may, within 15 days after mailing
124.23of notice of the amount of the tax, file with the county auditor a demand for hearing
124.24thereon on the tax before the county board. The county auditor shall thereupon fix a date
124.25of hearing, which shall must be held within 30 days after the filing of the demand, and
124.26mail to the owner notice of the time and place of the hearing. The owner may appear at
124.27the meeting and present evidence and argument as to the amount of the tax and as to any
124.28related matter relating thereto. The county board shall thereupon determine whether the
124.29tax as levied is proper in amount and make its order thereon. The county auditor shall
124.30forthwith mail to the owner a notice of the order. If the amount of the tax is increased or
124.31reduced by the order, the county auditor shall make a supplemental assessment and levy
124.32thereof, as in this subdivision provided.

124.33    Sec. 55. Minnesota Statutes 2014, section 88.52, subdivision 5, is amended to read:
125.1    Subd. 5. Yield tax, a prior lien. Throughout the life of any such auxiliary forest,
125.2the yield tax accruing thereon shall constitute and be yield tax constitutes and is a first and
125.3prior lien upon all the merchantable timber and forest products growing or grown thereon;
125.4and, if not paid when due, this yield tax, together with penalties and interest thereon as
125.5otherwise provided by law and all expenses of collecting same, shall continue continues to
125.6be a lien upon the timber and forest products and every part and parcel thereof wherever
125.7the same may be or however much changed in form or otherwise improved until the yield
125.8tax is fully paid. Such The lien may be foreclosed and the property subject thereto to
125.9the lien dealt with by action in the name of the state, brought by the county attorney at
125.10the request of the county auditor.

125.11    Sec. 56. Minnesota Statutes 2014, section 88.52, subdivision 6, is amended to read:
125.12    Subd. 6. Timber held exempt from yield tax. Timber cut from an auxiliary forest
125.13by an owner and used by the owner for fuel, fencing, or building on land occupied by the
125.14owner which is within or contiguous to the auxiliary forest where cut shall be is exempt
125.15from the yield tax, and, as to timber so cut and used, the requirements of subdivisions
125.161 and 2 shall do not be applicable and in lieu thereof apply. The owner shall, prior to
125.17cutting, file with the county auditor, on a form prepared by the commissioner, a statement
125.18showing the quantity of each kind of forest products proposed to be cut and the purposes
125.19for which the same the products will be used.

125.20    Sec. 57. Minnesota Statutes 2014, section 88.523, is amended to read:
125.2188.523 AUXILIARY FOREST CONTRACTS; SUPPLEMENTAL
125.22AGREEMENTS.
125.23Upon application of the owner, any auxiliary forest contract heretofore or hereafter
125.24executed may be made subject to any provisions of law enacted subsequent to the execution
125.25of the contract and in force at the time of application, so far as not already applicable, with
125.26the approval of the county board and the commissioner of natural resources. As evidence
125.27thereof A supplemental agreement in a form prescribed by the commissioner and approved
125.28by the attorney general shall must be executed by the commissioner in behalf of the state
125.29and by the owner. Such The supplemental agreement shall must be filed and recorded in
125.30like manner as the original supplemental contract under section 88.49, subdivision 9, and
125.31shall thereupon take takes effect upon filing and recording.

125.32    Sec. 58. Minnesota Statutes 2014, section 88.53, subdivision 1, is amended to read:
126.1    Subdivision 1. Time for disposal. Any corporation, association, or organization
126.2may acquire and hold any amount of land without restriction and without limit as to
126.3acreage or quantity for the purpose of including same within and holding same as an
126.4auxiliary forest under the provisions of sections 88.47 to 88.53. When the same shall
126.5cease land ceases to be an auxiliary forest, the owners shall have five years within which
126.6to dispose of the land, any provisions of general law to the contrary notwithstanding.

126.7    Sec. 59. Minnesota Statutes 2014, section 88.53, subdivision 2, is amended to read:
126.8    Subd. 2. Rules. The director shall make rules and adopt and prescribe such forms
126.9and procedure as shall be is necessary in carrying out the provisions of sections 88.47
126.10
88.49 to 88.53; and the director and every county board, county recorder, registrar of titles,
126.11assessor, tax collector, and every other person in official authority having any duties to
126.12perform under or growing out of sections 88.47 88.49 to 88.53 are hereby severally vested
126.13with full power and authority to enforce such rules, employ help and assistance, acquire
126.14and use equipment and supplies, or do any other act or thing reasonably necessary to the
126.15proper performance of duties under or arising from the administration and enforcement of
126.16sections 88.47 88.49 to 88.53. It shall be the duty of The director to must cause periodic
126.17inspections to be made of all auxiliary forests for the purpose of determining whether
126.18relative contract and statutory provisions relative thereto are being complied with.

126.19    Sec. 60. Minnesota Statutes 2014, section 88.6435, subdivision 4, is amended to read:
126.20    Subd. 4. Forest bough account; disposition of fees. (a) The forest bough account
126.21is established in the state treasury within the natural resources fund.
126.22(b) Fees for permits issued under this section shall must be deposited in the state
126.23treasury and credited to the forest bough account and, except for the electronic licensing
126.24system commission established by the commissioner under section 84.027, subdivision
126.2515
, are annually appropriated to the commissioner of natural resources for costs associated
126.26with balsam bough educational special forest product information and education programs
126.27for harvesters and buyers.

126.28    Sec. 61. Minnesota Statutes 2014, section 90.14, is amended to read:
126.2990.14 AUCTION SALE PROCEDURE.
126.30(a) All state timber shall be offered and sold by the same unit of measurement as it
126.31was appraised. No tract shall be sold to any person other than the purchaser in whose name
126.32the bid was made. The commissioner may refuse to approve any and all bids received and
126.33cancel a sale of state timber for good and sufficient reasons.
127.1(b) The purchaser at any sale of timber shall, immediately upon the approval of the
127.2bid, or, if unsold at public auction, at the time of purchase at a subsequent sale under section
127.390.101 , subdivision 1, pay to the commissioner a down payment of 15 percent of the
127.4appraised value. In case any purchaser fails to make such payment, the purchaser shall be
127.5liable therefor to the state in a civil action, and the commissioner may reoffer the timber for
127.6sale as though no bid or sale under section 90.101, subdivision 1, therefor had been made.
127.7(c) In lieu of the scaling of state timber required by this chapter, a purchaser of state
127.8timber may, at the time of payment by the purchaser to the commissioner of 15 percent
127.9of the appraised value, elect in writing on a form prescribed by the attorney general to
127.10purchase a permit based solely on the appraiser's estimate of the volume of timber described
127.11in the permit, provided that the commissioner has expressly designated the availability of
127.12such option for that tract on the list of tracts available for sale as required under section
127.1390.101 . A purchaser who elects in writing on a form prescribed by the attorney general
127.14to purchase a permit based solely on the appraiser's estimate of the volume of timber
127.15described on the permit does not have recourse to the provisions of section 90.281.
127.16(d) In the case of a public auction sale conducted by a sealed bid process, tracts shall
127.17be awarded to the high bidder, who shall pay to the commissioner a down payment of 15
127.18percent of the appraised value that must be received or postmarked within 14 days of
127.19the date of the sealed bid opening. If a purchaser fails to make the down payment, the
127.20purchaser is liable for the down payment to the state and the commissioner may offer the
127.21timber for sale to the next highest bidder as though no higher bid had been made.
127.22(e) Except as otherwise provided by law, at the time the purchaser signs a permit
127.23issued under section 90.151, the commissioner shall require the purchaser to make a bid
127.24guarantee payment to the commissioner in an amount equal to 15 percent of the total
127.25purchase price of the permit less the down payment amount required by paragraph (b)
127.26for any bid increase in excess of $5,000 $10,000 of the appraised value. If a required bid
127.27guarantee payment is not submitted with the signed permit, no harvesting may occur, the
127.28permit cancels, and the down payment for timber forfeits to the state. The bid guarantee
127.29payment forfeits to the state if the purchaser and successors in interest fail to execute
127.30an effective permit.
127.31EFFECTIVE DATE.This section is effective June 1, 2015, and applies to permits
127.32sold on or after that date.

127.33    Sec. 62. Minnesota Statutes 2014, section 90.193, is amended to read:
127.3490.193 EXTENSION OF TIMBER PERMITS.
128.1The commissioner may, in the case of an exceptional circumstance beyond the
128.2control of the timber permit holder which makes it unreasonable, impractical, and not
128.3feasible to complete cutting and removal under the permit within the time allowed, grant
128.4one regular extension for one year. A written request for the regular extension must be
128.5received by the commissioner before the permit expires. The request must state the reason
128.6the extension is necessary and be signed by the permit holder. An interest rate of eight
128.7five percent may be charged for the period of extension.
128.8EFFECTIVE DATE.This section is effective the day following final enactment.

128.9    Sec. 63. [92.83] CONDEMNATION OF SCHOOL TRUST LAND.
128.10    Subdivision 1. Purpose. The purpose of this section is to extinguish the school trust
128.11interest in school trust lands where long-term economic return is prohibited by designation
128.12or policy while producing economic benefits for Minnesota's public schools. For the
128.13purposes of satisfying the Minnesota Constitution, article XI, section 8, which limits the
128.14sale of school trust lands to a public sale, the commissioner of natural resources shall
128.15acquire school trust lands through condemnation, as provided in subdivision 2.
128.16    Subd. 2. Commencement of condemnation proceedings. When the commissioner
128.17of natural resources has determined sufficient money is available to acquire any of the
128.18lands identified under section 84.027, subdivision 18, paragraph (c), the commissioner
128.19shall proceed to extinguish the school trust interest by condemnation action. When
128.20requested by the commissioner, the attorney general shall commence condemnation of
128.21the identified school trust lands.
128.22    Subd. 3. Payment. The portion of the payment of the award and judgment that
128.23is for the value of the land shall be deposited into the permanent school fund. The
128.24remainder of the award and judgment payment shall first be remitted for reimbursement
128.25to the accounts from which expenses were paid, with any remainder deposited into the
128.26permanent school fund.
128.27    Subd. 4. Account. The school trust lands account is created in the state treasury.
128.28Money credited to the account is appropriated to the commissioner of natural resources
128.29for the purposes of this section.

128.30    Sec. 64. Minnesota Statutes 2014, section 94.10, subdivision 2, is amended to read:
128.31    Subd. 2. Public sale requirements. (a) After complying with subdivision 1 and
128.32before any public sale of surplus state-owned land is made and at least 30 days before
128.33the sale, the commissioner of natural resources shall publish a notice of the sale in a
128.34newspaper of general distribution in the county in which the real property to be sold is
129.1situated. The notice shall specify the time and place at which the sale will commence, a
129.2general description of the lots or tracts to be offered, and a general statement of the terms
129.3of sale. The commissioner shall also provide electronic notice of sale.
129.4(b) The minimum bid for a parcel of land must include the estimated value or
129.5appraised value of the land and any improvements and, if any of the land is valuable for
129.6merchantable timber, the value of the merchantable timber. The minimum bid may include
129.7expenses incurred by the commissioner in rendering the property salable, including
129.8survey, appraisal, legal, advertising, and other expenses.
129.9(c) Except as provided under paragraph (d), parcels remaining unsold after the
129.10offering may be sold to anyone agreeing to pay at least 75 percent of the appraised
129.11value. The sale shall continue until all parcels are sold or until the commissioner orders a
129.12reappraisal or withdraws the remaining parcels from sale.
129.13(d) The commissioner may retain the services of a licensed real estate broker to find
129.14a buyer for parcels remaining unsold after the offering. The sale price may be negotiated
129.15by the broker, but must not be less than 90 percent of the appraised value as determined by
129.16the commissioner. The broker's fee must be established by prior agreement between the
129.17commissioner and the broker and must not exceed ten percent of the sale price for sales of
129.18$10,000 or more. The broker's fee must be paid to the broker from the proceeds of the sale.

129.19    Sec. 65. Minnesota Statutes 2014, section 94.16, subdivision 2, is amended to read:
129.20    Subd. 2. Payment of expenses. A portion of the proceeds from the sale equal
129.21in amount to the survey, appraisal, legal, advertising, real estate broker fee, and other
129.22expenses incurred by the commissioner of natural resources in rendering the property
129.23salable and sold shall be remitted to the account from which the expenses were paid,
129.24and are appropriated and immediately available for expenditure in the same manner as
129.25other money in the account.

129.26    Sec. 66. Minnesota Statutes 2014, section 94.16, subdivision 3, is amended to read:
129.27    Subd. 3. Proceeds from natural resources land. (a) Except as provided in
129.28paragraph paragraphs (b) and (c), the remainder of the proceeds from the sale of lands
129.29classified as a unit of the outdoor recreation system under section 86A.05 that were under
129.30the control and supervision of the commissioner of natural resources shall be credited to
129.31the land acquisition account in the natural resources fund.
129.32    (b) The remainder of the proceeds from the sale of administrative sites under the
129.33control and supervision of the commissioner of natural resources shall be credited to the
129.34facilities management account established under section 84.0857 and used to acquire
130.1facilities or renovate existing buildings for administrative use or to acquire land for,
130.2design, and construct administrative buildings for the Department of Natural Resources.
130.3(c) The remainder of the proceeds from the sale of land not within a unit of the
130.4outdoor recreation system under section 86A.05 and not an administrative site, but under
130.5the control and supervision of the commissioner of natural resources, shall be credited to
130.6the school trust lands account established under section 92.83.

130.7    Sec. 67. Minnesota Statutes 2014, section 97A.055, subdivision 4b, is amended to read:
130.8    Subd. 4b. Citizen oversight committees. (a) The commissioner shall appoint
130.9committees of affected persons to review the reports prepared under subdivision 4; review
130.10the proposed work plans and budgets for the coming year; propose changes in policies,
130.11activities, and revenue enhancements or reductions; review other relevant information;
130.12and make recommendations to the legislature and the commissioner for improvements in
130.13the management and use of money in the game and fish fund.
130.14    (b) The commissioner shall appoint the following committees, each comprised
130.15of at least ten affected persons:
130.16    (1) a Fisheries Oversight Committee to review fisheries funding and expenditures,
130.17including activities related to trout and salmon stamps and walleye stamps; and
130.18    (2) a Wildlife Oversight Committee to review wildlife funding and expenditures,
130.19including activities related to migratory waterfowl, pheasant, and wild turkey management
130.20and deer and big game management.
130.21    (c) The chairs of the Fisheries Oversight Committee and the Wildlife Oversight
130.22Committee, and four additional members from each committee, shall form a Budgetary
130.23Oversight Committee to coordinate the integration of the fisheries and wildlife oversight
130.24committee reports into an annual report to the legislature; recommend changes on a broad
130.25level in policies, activities, and revenue enhancements or reductions; and provide a forum
130.26to address issues that transcend the fisheries and wildlife oversight committees.
130.27    (d) The Budgetary Oversight Committee shall develop recommendations for a
130.28biennial budget plan and report for expenditures on game and fish activities. By August 15
130.29of each even-numbered year, the committee shall submit the budget plan recommendations
130.30to the commissioner and to the senate and house of representatives committees with
130.31jurisdiction over natural resources finance.
130.32    (e) The chairs of the Fisheries Oversight Committee and the Wildlife Oversight
130.33Committee shall be chosen by their respective committees. The chair of the Budgetary
130.34Oversight Committee shall be appointed by the commissioner and may not be the chair of
130.35either of the other oversight committees.
131.1    (f) The Budgetary Oversight Committee may make recommendations to the
131.2commissioner and to the senate and house of representatives committees with jurisdiction
131.3over natural resources finance for outcome goals from expenditures.
131.4    (g) The committees authorized under this subdivision are not advisory councils or
131.5committees governed by section 15.059 and are not subject to section 15.059. Committee
131.6members appointed by the commissioner may request reimbursement for mileage
131.7expenses in the same manner and amount as authorized by the commissioner's plan
131.8adopted under section 43A.18, subdivision 2. Committee members must not receive daily
131.9compensation for oversight activities. The Fisheries Oversight Committee, the Wildlife
131.10Oversight Committee, and the Budgetary Oversight Committee expire June 30, 2015 2020.
131.11EFFECTIVE DATE.This section is effective the day following final enactment.

131.12    Sec. 68. Minnesota Statutes 2014, section 97B.668, is amended to read:
131.1397B.668 CANADA GEESE GAME BIRDS CAUSING DAMAGE.
131.14Notwithstanding sections 97B.091 and 97B.805, subdivisions 1 and 2, a person or
131.15agent of that person on lands and nonpublic waters owned or operated by the person
131.16may nonlethally scare, haze, chase, or harass Canada geese game birds that are causing
131.17property damage from March 11 to August 31 or to protect a disease risk at any time or
131.18place that a hunting season for the game birds is not open. This section does not apply to
131.19public waters as defined under section 103G.005, subdivision 15, or. This section does not
131.20apply to migratory waterfowl on nests and other federally protected game birds on nests,
131.21except ducks and geese on nests unless when a permit is obtained under section 97A.401.

131.22    Sec. 69. Minnesota Statutes 2014, section 97C.301, is amended by adding a
131.23subdivision to read:
131.24    Subd. 2a. Aquatic invasive species affirmation. (a) A nonresident license to
131.25take fish issued under section 97A.475, subdivision 7, includes aquatic invasive species
131.26affirmation as provided in section 84D.106.
131.27(b) The aquatic invasive species affirmation portion of the license must be displayed
131.28with the signed nonresident license to take fish issued under section 97A.475, subdivision
131.297. The aquatic invasive species affirmation will be provided at the time of purchase of a
131.30new or duplicate nonresident license.
131.31(c) If a license is purchased online, the aquatic invasive species affirmation may be
131.32completed electronically as part of the online sales process, and the electronic record of
131.33the license sale is sufficient for documenting the affirmation.
132.1(d) Failure to complete the aquatic invasive species affirmation in this subdivision is
132.2subject to the penalty prescribed in section 84D.13, subdivision 5.
132.3EFFECTIVE DATE.This section is effective March 1, 2016.

132.4    Sec. 70. Minnesota Statutes 2014, section 103B.101, is amended by adding a
132.5subdivision to read:
132.6    Subd. 12a. Authority to issue penalty orders. (a) A county or watershed district
132.7with jurisdiction or the Board of Water and Soil Resources may issue an order requiring
132.8violations of the water resources riparian protection requirements under sections 103F.48,
132.9103F.415, and 103F.421, to be corrected and administratively assessing monetary
132.10penalties up to $500 for noncompliance commencing on day one of the 11th month
132.11after the noncompliance notice was issued. One-half of the proceeds collected from an
132.12administrative penalty order issued under this section must be remitted to the county or
132.13watershed district with jurisdiction over the noncompliant site.
132.14(b) Administrative penalties may be reissued and appealed under paragraph (a)
132.15according to section 103F.48, subdivision 9.

132.16    Sec. 71. Minnesota Statutes 2014, section 103B.101, is amended by adding a
132.17subdivision to read:
132.18    Subd. 16. Wetland stakeholder coordination. The board shall work with
132.19wetland stakeholders to foster mutual understanding and provide recommendations for
132.20improvements to the management of wetlands and related land and water resources,
132.21including recommendations for updating the Wetland Conservation Act, developing
132.22an in-lieu fee program as defined in section 103G.005, subdivision 10g, and related
132.23provisions. The board may convene informal working groups or work teams to provide
132.24information and education and to develop recommendations.

132.25    Sec. 72. [103B.103] EASEMENT STEWARDSHIP ACCOUNTS.
132.26    Subdivision 1. Accounts established; sources. (a) The water and soil conservation
132.27easement stewardship account and the mitigation easement stewardship account are
132.28created in the special revenue fund. The accounts consist of money credited to the
132.29accounts and interest and other earnings on money in the accounts. The State Board of
132.30Investment must manage the accounts to maximize long-term gain.
132.31(b) Revenue from contributions and money appropriated for any purposes of the
132.32account as described in subdivision 2 must be deposited in the water and soil conservation
132.33easement stewardship account. Revenue from contributions, wetland banking fees
133.1designated for stewardship purposes by the board, easement stewardship payments
133.2authorized under subdivision 3, and money appropriated for any purposes of the account
133.3as described in subdivision 2 must be deposited in the mitigation easement stewardship
133.4account.
133.5    Subd. 2. Appropriation; purposes of accounts. Five percent of the balance on
133.6July 1 each year in the water and soil conservation easement stewardship account and
133.7five percent of the balance on July 1 each year in the mitigation easement stewardship
133.8account are annually appropriated to the board and may be spent only to cover the costs
133.9of managing easements held by the board, including costs associated with monitoring,
133.10landowner contacts, records storage and management, processing landowner notices,
133.11requests for approval or amendments, enforcement, and legal services associated with
133.12easement management activities.
133.13    Subd. 3. Financial contributions. The board shall seek a financial contribution
133.14to the water and soil conservation easement stewardship account for each conservation
133.15easement acquired by the board. The board shall seek a financial contribution or assess an
133.16easement stewardship payment to the mitigation easement stewardship account for each
133.17wetland banking easement acquired by the board. Unless otherwise provided by law,
133.18the board shall determine the amount of the contribution or payment, which must be an
133.19amount calculated to earn sufficient money to meet the costs of managing the easement at
133.20a level that neither significantly overrecovers nor underrecovers the costs. In determining
133.21the amount of the financial contribution, the board shall consider:
133.22(1) the estimated annual staff hours needed to manage the conservation easement,
133.23taking into consideration factors such as easement type, size, location, and complexity;
133.24(2) the average hourly wages for the class or classes of state and local employees
133.25expected to manage the easement;
133.26(3) the estimated annual travel expenses to manage the easement;
133.27(4) the estimated annual miscellaneous costs to manage the easement, including
133.28supplies and equipment, information technology support, and aerial flyovers;
133.29(5) the estimated annualized costs of legal services, including the cost to enforce the
133.30easement in the event of a violation; and
133.31(6) the expected rate of return on investments in the account.
133.32EFFECTIVE DATE.Subdivisions 1 and 2 of this section are effective the day
133.33following final enactment. Subdivision 3 of this section is effective for conservation
133.34easements acquired with money appropriated on or after July 1, 2015, and for acquisitions
133.35of conservation easements by gift or as a condition of approval for wetland mitigation as
133.36provided in Minnesota Rules, chapter 8420, that are initiated on or after July 1, 2015.

134.1    Sec. 73. Minnesota Statutes 2014, section 103B.3355, is amended to read:
134.2103B.3355 WETLAND FUNCTIONS FOR DETERMINING PUBLIC
134.3VALUES.
134.4(a) The public values of wetlands must be determined based upon the functions of
134.5wetlands for:
134.6(1) water quality, including filtering of pollutants to surface and groundwater,
134.7utilization of nutrients that would otherwise pollute public waters, trapping of sediments,
134.8shoreline protection, and utilization of the wetland as a recharge area for groundwater;
134.9(2) floodwater and storm water retention, including the potential for flooding in
134.10the watershed, the value of property subject to flooding, and the reduction in potential
134.11flooding by the wetland;
134.12(3) public recreation and education, including hunting and fishing areas, wildlife
134.13viewing areas, and nature areas;
134.14(4) commercial uses, including wild rice and cranberry growing and harvesting
134.15and aquaculture;
134.16(5) fish, wildlife, native plant habitats;
134.17(6) low-flow augmentation;
134.18(7) carbon sequestration; and
134.19(8) other public uses.
134.20(b) The Board of Water and Soil Resources, in consultation with the commissioners of
134.21natural resources and agriculture and local government units, shall adopt rules establishing:
134.22(1) scientific methodologies for determining the functions of wetlands; and
134.23(2) criteria for determining the resulting public values of wetlands.
134.24(c) The methodologies and criteria established under this section or other
134.25methodologies and criteria that include the functions in paragraph (a) and are approved
134.26by the board, in consultation with the commissioners of natural resources and agriculture
134.27and local government units, must be used to determine the functions and resulting public
134.28values of wetlands in the state. The functions listed in paragraph (a) are not listed in
134.29order of priority.
134.30(d) Public value criteria established or approved by the board under this section do
134.31not apply in areas subject to local comprehensive wetland protection and management
134.32plans established under section 103G.2243.
134.33(e) The Board of Water and Soil Resources, in consultation with the commissioners
134.34of natural resources and agriculture and local government units, may must identify regions
134.35areas of the state where preservation, enhancement, restoration, and establishment
134.36of wetlands would have high public value. The board, in consultation with the
135.1commissioners, may must identify high priority wetland regions areas for wetland
135.2replacement using available information relating to the factors listed in paragraph
135.3(a), the historic loss and abundance of wetlands, current applicable state and local
135.4government water management and natural resource plans, and studies using a watershed
135.5approach to identify current and future watershed needs. The board shall notify local
135.6units of government with water planning authority of these high priority regions areas.
135.7Designation of high priority areas is exempt from the rulemaking requirements of chapter
135.814, and section 14.386 does not apply. Designation of high priority areas is not effective
135.9until 30 days after publication in the State Register.
135.10(f) Local units of government, as part of a state-approved comprehensive local
135.11water management plan as defined in section 103B.3363, subdivision 3, a state-approved
135.12comprehensive watershed management plan as defined in section 103B.3363, subdivision
135.133a, or a state-approved local comprehensive wetland protection and management plan
135.14under section 103G.2243, may identify priority areas for wetland replacement and provide
135.15them for consideration under paragraph (e).

135.16    Sec. 74. Minnesota Statutes 2014, section 103D.335, subdivision 21, is amended to
135.17read:
135.18    Subd. 21. Contracts. The managers may make contracts or other arrangements with
135.19the federal government, persons, railroads or other corporations, political subdivisions,
135.20and the state or other states, with drainage authorities, flood control, soil conservation,
135.21or other improvement districts in this state or other states, for cooperation or assistance
135.22in constructing, maintaining, and operating the projects of the watershed district, or for
135.23the control of its waters, or for making surveys and investigations or reports on them.
135.24Property acquired for flood damage reduction purposes by the watershed district may be
135.25operated or leased by the district for agricultural purposes during periods the property is
135.26not needed for flood control, provided it remains subject to use by the watershed district
135.27as necessary for flood control purposes. Notwithstanding section 16A.695, revenue
135.28received by the watershed district from the operation or lease of state bond financed
135.29property acquired for flood control purposes shall be retained by the district in a separate
135.30project-specific account and used solely for flood control operation, maintenance, and
135.31replacement purposes within the related project area and, if the district determines that the
135.32account contains adequate reserves for future operation, maintenance, and replacement,
135.33any excess may be used for the construction, operation, maintenance, or replacement of
135.34other flood control projects as approved by the commissioner.

136.1    Sec. 75. Minnesota Statutes 2014, section 103F.421, subdivision 4, is amended to read:
136.2    Subd. 4. Application for cost-sharing funds. The landowner has 90 days after a
136.3mediated settlement is filed complaint is substantiated to apply for state cost-sharing funds
136.4that will provide 75 percent of the cost of the permanent conservation practices. Only 50
136.5Fifty percent of the cost share will be provided if the application is not made within 90
136.6days after the settlement is filed, unless the soil and water conservation district or the
136.7board provides an extension. An extension must be granted if funds are not available. The
136.8landowner must apply for 50 percent of the cost share within 270 days after the mediated
136.9settlement is filed.

136.10    Sec. 76. Minnesota Statutes 2014, section 103F.421, is amended by adding a
136.11subdivision to read:
136.12    Subd. 6. Application of state and federal law. Nothing in this section is intended
136.13to preclude the application of other applicable state or federal law.

136.14    Sec. 77. [103F.48] RIPARIAN PROTECTION AND WATER QUALITY
136.15PRACTICES.
136.16    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
136.17have the meanings given them.
136.18(b) "Board" means the Board of Water and Soil Resources.
136.19(c) "Buffer" means an area consisting of perennial vegetation, excluding invasive
136.20plants and noxious weeds, adjacent to all bodies of water within the state and that protects
136.21the water resources of the state from runoff pollution; stabilizes soils, shores, and banks;
136.22and protects or provides riparian corridors.
136.23(d) "Buffer protection map" means buffer maps established and maintained by the
136.24commissioner of natural resources.
136.25(e) "Commissioner" means the commissioner of natural resources.
136.26(f) "Executive director" means the executive director of the Board of Water and
136.27Soil Resources.
136.28(g) "Local water management authority" means a watershed district, metropolitan
136.29water management organization, or county operating separately or jointly in its role as
136.30local water management authority under chapter 103B or 103D.
136.31(h) "Normal water level" means the level evidenced by the long-term presence of
136.32surface water as indicated directly by hydrophytic plants or hydric soils or indirectly
136.33determined via hydrological models or analysis.
136.34(i) "Public waters" has the meaning given in section 103G.005, subdivision 15.
137.1    Subd. 2. Purpose. It is the policy of the state to establish riparian buffers and
137.2water quality practices to:
137.3(1) protect state water resources from erosion and runoff pollution;
137.4(2) stabilize soils, shores, and banks; and
137.5(3) protect or provide riparian corridors.
137.6    Subd. 3. Water resources riparian protection requirements on public waters
137.7and public drainage systems. (a) Except as provided in paragraph (b), landowners
137.8owning property adjacent to a water body identified and mapped on a buffer protection
137.9map must maintain a buffer to protect the state's water resources as follows:
137.10(1) for all public waters, the more restrictive of:
137.11(i) a 50-foot average width, 30-foot minimum width, continuous buffer of
137.12perennially rooted vegetation; or
137.13(ii) the state shoreland standards and criteria adopted by the commissioner under
137.14section 103F.211; and
137.15(2) for public drainage systems established under chapter 103E, a 16.5-foot
137.16minimum width continuous buffer of perennially rooted vegetation on ditches within the
137.17benefited area of public drainage systems.
137.18(b) A landowner owning property adjacent to a water body identified in a buffer
137.19protection map and whose property is used for cultivation farming may meet the
137.20requirements under paragraph (a) by adopting an alternative riparian water quality
137.21practice, or combination of structural, vegetative, and management practices, based on the
137.22Natural Resources Conservation Service Field Office Technical Guide or other practices
137.23approved by the board, that provide water quality protection comparable to the buffer
137.24protection for the water body that the property abuts.
137.25(c) The width of a buffer must be measured from the top or crown of the bank. Where
137.26there is no defined bank, measurement must be from the edge of the normal water level.
137.27(d) Upon request by a landowner or authorized agent or operator of a landowner,
137.28a technical professional employee or contractor of the soil and water conservation
137.29district or its delegate may issue a validation of compliance with the requirements of
137.30this subdivision. The soil and water conservation district validation may be appealed to
137.31the board as described in subdivision 9.
137.32(e) Buffers or alternative water quality practices required under paragraph (a) or
137.33(b) must be in place on or before:
137.34(1) November 1, 2017, for public waters; and
137.35(2) November 1, 2018, for public drainage systems.
138.1    Subd. 4. Local water resources riparian protection. On or before July 1, 2017,
138.2the soil and water conservation district shall develop, adopt, and submit to each local
138.3water management authority within its boundary a summary of watercourses for inclusion
138.4in the local water management authority's plan. A local water management authority that
138.5receives a summary of watercourses identified under this subdivision must revise its
138.6comprehensive local water management plan or comprehensive watershed management
138.7plan to incorporate the soil and water conservation district recommendations.
138.8    Subd. 5. Exemptions. Land adjacent to waters subject to subdivision 3 is exempt
138.9from the water resource protection requirements under subdivision 3, to the extent these
138.10exemptions are not inconsistent with the requirements of the state shoreland rules adopted
138.11by the commissioner pursuant to section 103F.211, if it is:
138.12(1) enrolled in the federal Conservation Reserve Program;
138.13(2) used as a public or private water access or recreational use area including
138.14stairways, landings, picnic areas, access paths, beach and watercraft access areas, and
138.15permitted water-oriented structures as provided in the shoreland model standards and
138.16criteria adopted pursuant to section 103F.211 or as provided for in an approved local
138.17government shoreland ordinance;
138.18(3) covered by a road, trail, building, or other structures; or
138.19(4) regulated by a national pollutant discharge elimination system/state disposal
138.20system (NPDES/SDS) permit under Minnesota Rules, chapter 7090, and provides water
138.21resources riparian protection, in any of the following categories:
138.22(i) municipal separate storm sewer system (MS4);
138.23(ii) construction storm water (CSW); or
138.24(iii) industrial storm water (ISW);
138.25(5) part of a water-inundation cropping system; or
138.26(6) in a temporary nonvegetated condition due to drainage tile installation and
138.27maintenance, alfalfa or other perennial crop or plant seeding, or construction or
138.28conservation projects authorized by a federal, state, or local government unit.
138.29    Subd. 6. Local implementation and assistance. (a) Soil and water conservation
138.30districts must assist landowners with implementation of the water resource riparian
138.31protection requirements established in this section. For the purposes of this subdivision,
138.32assistance includes planning, technical assistance, implementation of approved alternative
138.33practices, and tracking progress towards compliance with the requirements.
138.34(b) The commissioner or the board must provide sufficient funding to soil and water
138.35conservation districts to implement this section.
139.1    Subd. 7. Corrective actions. (a) If the soil and water conservation district
139.2determines a landowner is not in compliance with this section, the district must notify the
139.3county or watershed district with jurisdiction over the noncompliant site. The county or
139.4watershed district must provide the landowner with a list of corrective actions needed to
139.5come into compliance and a practical timeline to meet the requirements in this section.
139.6The county or watershed district with jurisdiction must provide a copy of the corrective
139.7action notice to the board.
139.8(b) If the landowner does not comply with the list of actions and timeline provided,
139.9the county or watershed district may enforce this section under the authority granted in
139.10section 103B.101, subdivision 12a. Before exercising this authority, a county or watershed
139.11district must adopt a plan containing procedures for the issuance of administrative penalty
139.12orders and may issue orders beginning November 1, 2017. If a county or watershed
139.13district with jurisdiction over the noncompliant site has not adopted a plan under this
139.14paragraph, the board may enforce this section under the authority granted in section
139.15103B.101, subdivision 12a.
139.16(c) If the county, watershed district, or board determines that sufficient steps have
139.17been taken to fully resolve noncompliance, all or part of the penalty may be forgiven.
139.18(d) An order issued under paragraph (b) may be appealed to the board as provided
139.19under subdivision 9.
139.20(e) A corrective action is not required for conditions resulting from a flood or other
139.21act of nature.
139.22(f) A landowner agent or operator of a landowner may not remove or willfully degrade
139.23a riparian buffer or water quality practice, wholly or partially, unless the agent or operator
139.24has obtained a signed statement from the property owner stating that the permission for the
139.25work has been granted by the unit of government authorized to approve the work in this
139.26section or that a buffer or water quality practice is not required as validated by the soil and
139.27water conservation district. Removal or willful degradation of a riparian buffer or water
139.28quality practice, wholly or partially, by an agent or operator is a separate and independent
139.29offense and may be subject to the corrective actions and penalties in this subdivision.
139.30    Subd. 8. Funding subject to withholding. The state may withhold funding from a
139.31local water management authority or a soil and water conservation district that fails to
139.32implement this section. Funding subject to withholding includes soil and water program
139.33aid, a natural resources block grant, and other project or program funding. Funding may
139.34be restored upon the board's approval of a corrective action plan.
139.35    Subd. 9. Appeals of validations and penalty orders. A landowner or agent or
139.36operator may appeal the terms and conditions of a soil and water conservation district
140.1validation or an administrative penalty order to the board within 30 days of receipt of
140.2written or electronic notice of the validation or order. The request for appeal must be in
140.3writing. The appealing party must provide a copy of the validation or order that is being
140.4appealed, the basis for the appeal, and any supporting evidence. The request for appeal
140.5may be submitted personally, by first class mail, or electronically to the executive director.
140.6If a written or electronic request for appeal is not submitted within 30 days, the validation
140.7or order is final. The executive director shall review the request and supporting evidence
140.8and issue a decision within 60 days of receipt of an appeal. The executive director's
140.9decision is appealable directly to the Court of Appeals pursuant to sections 14.63 to 14.69.
140.10    Subd. 10. Landowner financial assistance and public drainage system procedure.
140.11(a) A landowner or drainage authority may contact the soil and water conservation district
140.12for information on how to apply for local, state, or federal cost-share grants, contracts, or
140.13loans that are available to establish buffers or other water resource protection measures.
140.14(b) The provisions of sections 103E.011, subdivision 5; 103E.021, subdivision 6;
140.15and 103E.715 may be used in advance or retroactively to acquire or provide compensation
140.16for all or part of the buffer strip establishment or alternative riparian water quality
140.17practices as required under subdivision 3, paragraph (a), within the benefited area of a
140.18public drainage system. Implementation of this subdivision is not subject to limitation of
140.19project costs to the current benefits adopted for the drainage system.
140.20    Subd. 11. State lands. This section applies to the state and its departments and
140.21agencies.

140.22    Sec. 78. Minnesota Statutes 2014, section 103F.612, subdivision 2, is amended to read:
140.23    Subd. 2. Application. (a) A wetland owner may apply to the county where a
140.24wetland is located for designation of a wetland preservation area in a high priority wetland
140.25area identified in a comprehensive local water plan, as defined in section 103B.3363,
140.26subdivision 3
, and located within a high priority wetland region designated by the Board
140.27of Water and Soil Resources, if the county chooses to accept wetland preservation area
140.28applications. The application must be made on forms provided by the board. If a wetland
140.29is located in more than one county, the application must be submitted to the county where
140.30the majority of the wetland is located.
140.31(b) The application shall be executed and acknowledged in the manner required
140.32by law to execute and acknowledge a deed and must contain at least the following
140.33information and other information the Board of Water and Soil Resources requires:
141.1(1) legal description of the area to be approved, which must include an upland strip
141.2at least 16-1/2 feet in width around the perimeter of wetlands within the area and may
141.3include total upland area of up to four acres for each acre of wetland;
141.4(2) parcel identification numbers where designated by the county auditor;
141.5(3) name and address of the owner;
141.6(4) a statement by the owner covenanting that the land will be preserved as a wetland
141.7and will only be used in accordance with conditions prescribed by the Board of Water and
141.8Soil Resources and providing that the restrictive covenant will be binding on the owner
141.9and the owner's successors or assigns, and will run with the land.
141.10(c) The upland strip required in paragraph (b), clause (1), must be planted with
141.11permanent vegetation other than a noxious weed.

141.12    Sec. 79. Minnesota Statutes 2014, section 103G.005, is amended by adding a
141.13subdivision to read:
141.14    Subd. 10g. In-lieu fee program. "In-lieu fee program" means a program in which
141.15wetland replacement requirements of section 103G.222 are satisfied through payment of
141.16money to the board or a board-approved sponsor to develop replacement credits according
141.17to section 103G.2242, subdivision 12.

141.18    Sec. 80. Minnesota Statutes 2014, section 103G.222, subdivision 1, is amended to read:
141.19    Subdivision 1. Requirements. (a) Wetlands must not be drained or filled, wholly or
141.20partially, unless replaced by restoring or creating wetland areas of actions that provide
141.21at least equal public value under a replacement plan approved as provided in section
141.22103G.2242 , a replacement plan under a local governmental unit's comprehensive wetland
141.23protection and management plan approved by the board under section 103G.2243, or, if a
141.24permit to mine is required under section 93.481, under a mining reclamation plan approved
141.25by the commissioner under the permit to mine. For project-specific wetland replacement
141.26completed prior to wetland impacts authorized or conducted under a permit to mine within
141.27the Great Lakes and Rainy River watershed basins, those basins shall be considered a single
141.28watershed for purposes of determining wetland replacement ratios. Mining reclamation
141.29plans shall apply the same principles and standards for replacing wetlands by restoration
141.30or creation of wetland areas that are applicable to mitigation plans approved as provided
141.31in section 103G.2242. Public value must be determined in accordance with section
141.32103B.3355 or a comprehensive wetland protection and management plan established
141.33under section 103G.2243. Sections 103G.221 to 103G.2372 also apply to excavation in
141.34permanently and semipermanently flooded areas of types 3, 4, and 5 wetlands.
142.1    (b) Replacement must be guided by the following principles in descending order
142.2of priority:
142.3    (1) avoiding the direct or indirect impact of the activity that may destroy or diminish
142.4the wetland;
142.5    (2) minimizing the impact by limiting the degree or magnitude of the wetland
142.6activity and its implementation;
142.7    (3) rectifying the impact by repairing, rehabilitating, or restoring the affected
142.8wetland environment;
142.9    (4) reducing or eliminating the impact over time by preservation and maintenance
142.10operations during the life of the activity;
142.11    (5) compensating for the impact by restoring a wetland; and
142.12    (6) compensating for the impact by replacing or providing substitute wetland
142.13resources or environments.
142.14    For a project involving the draining or filling of wetlands in an amount not exceeding
142.1510,000 square feet more than the applicable amount in section 103G.2241, subdivision 9,
142.16paragraph (a), the local government unit may make an on-site sequencing determination
142.17without a written alternatives analysis from the applicant.
142.18    (c) If a wetland is located in a cultivated field, then replacement must be accomplished
142.19through restoration only without regard to the priority order in paragraph (b), provided
142.20that the altered wetland is not converted to a nonagricultural use for at least ten years.
142.21    (d) If a wetland is replaced under paragraph (c), or drained under section 103G.2241,
142.22subdivision 2
, paragraph (b) or (e), the local government unit may require a deed
142.23restriction that prohibits nonagricultural use for at least ten years. The local government
142.24unit may require the deed restriction if it determines the wetland area drained is at risk of
142.25conversion to a nonagricultural use within ten years based on the zoning classification,
142.26proximity to a municipality or full service road, or other criteria as determined by the
142.27local government unit.
142.28    (e) Restoration and replacement of wetlands must be accomplished in accordance
142.29with the ecology of the landscape area affected and ponds that are created primarily to
142.30fulfill storm water management, and water quality treatment requirements may not be
142.31used to satisfy replacement requirements under this chapter unless the design includes
142.32pretreatment of runoff and the pond is functioning as a wetland.
142.33    (f) Except as provided in paragraph (g), for a wetland or public waters wetland
142.34located on nonagricultural land, replacement must be in the ratio of two acres of replaced
142.35wetland for each acre of drained or filled wetland.
143.1    (g) For a wetland or public waters wetland located on agricultural land or in a greater
143.2than 80 percent area, replacement must be in the ratio of one acre of replaced wetland
143.3for each acre of drained or filled wetland.
143.4    (h) Wetlands that are restored or created as a result of an approved replacement plan
143.5are subject to the provisions of this section for any subsequent drainage or filling.
143.6    (i) Except in a greater than 80 percent area, only wetlands that have been
143.7restored from previously drained or filled wetlands, wetlands created by excavation in
143.8nonwetlands, wetlands created by dikes or dams along public or private drainage ditches,
143.9or wetlands created by dikes or dams associated with the restoration of previously
143.10drained or filled wetlands may be used in a statewide banking program established in for
143.11wetland replacement according to rules adopted under section 103G.2242, subdivision 1.
143.12Modification or conversion of nondegraded naturally occurring wetlands from one type to
143.13another are not eligible for enrollment in a statewide wetlands bank wetland replacement.
143.14    (j) The Technical Evaluation Panel established under section 103G.2242, subdivision
143.152
, shall ensure that sufficient time has occurred for the wetland to develop wetland
143.16characteristics of soils, vegetation, and hydrology before recommending that the wetland
143.17be deposited in the statewide wetland bank. If the Technical Evaluation Panel has reason
143.18to believe that the wetland characteristics may change substantially, the panel shall
143.19postpone its recommendation until the wetland has stabilized.
143.20    (k) This section and sections 103G.223 to 103G.2242, 103G.2364, and 103G.2365
143.21apply to the state and its departments and agencies.
143.22    (l) For projects involving draining or filling of wetlands associated with a new public
143.23transportation project, and for projects expanded solely for additional traffic capacity,
143.24public transportation authorities may purchase credits from the board at the cost to the
143.25board to establish credits. Proceeds from the sale of credits provided under this paragraph
143.26are appropriated to the board for the purposes of this paragraph. For the purposes of this
143.27paragraph, "transportation project" does not include an airport project.
143.28    (m) A replacement plan for wetlands is not required for individual projects that
143.29result in the filling or draining of wetlands for the repair, rehabilitation, reconstruction,
143.30or replacement of a currently serviceable existing state, city, county, or town public road
143.31necessary, as determined by the public transportation authority, to meet state or federal
143.32design or safety standards or requirements, excluding new roads or roads expanded solely
143.33for additional traffic capacity lanes. This paragraph only applies to authorities for public
143.34transportation projects that:
143.35    (1) minimize the amount of wetland filling or draining associated with the project
143.36and consider mitigating important site-specific wetland functions on site;
144.1    (2) except as provided in clause (3), submit project-specific reports to the board, the
144.2Technical Evaluation Panel, the commissioner of natural resources, and members of the
144.3public requesting a copy at least 30 days prior to construction that indicate the location,
144.4amount, and type of wetlands to be filled or drained by the project or, alternatively,
144.5convene an annual meeting of the parties required to receive notice to review projects to
144.6be commenced during the upcoming year; and
144.7    (3) for minor and emergency maintenance work impacting less than 10,000 square
144.8feet, submit project-specific reports, within 30 days of commencing the activity, to the board
144.9that indicate the location, amount, and type of wetlands that have been filled or drained.
144.10    Those required to receive notice of public transportation projects may appeal
144.11minimization, delineation, and on-site mitigation decisions made by the public
144.12transportation authority to the board according to the provisions of section 103G.2242,
144.13subdivision 9
. The Technical Evaluation Panel shall review minimization and delineation
144.14decisions made by the public transportation authority and provide recommendations
144.15regarding on-site mitigation if requested to do so by the local government unit, a
144.16contiguous landowner, or a member of the Technical Evaluation Panel.
144.17    Except for state public transportation projects, for which the state Department of
144.18Transportation is responsible, the board must replace the wetlands, and wetland areas of
144.19public waters if authorized by the commissioner or a delegated authority, drained or filled
144.20by public transportation projects on existing roads.
144.21    Public transportation authorities at their discretion may deviate from federal and
144.22state design standards on existing road projects when practical and reasonable to avoid
144.23wetland filling or draining, provided that public safety is not unreasonably compromised.
144.24The local road authority and its officers and employees are exempt from liability for
144.25any tort claim for injury to persons or property arising from travel on the highway and
144.26related to the deviation from the design standards for construction or reconstruction under
144.27this paragraph. This paragraph does not preclude an action for damages arising from
144.28negligence in construction or maintenance on a highway.
144.29    (n) If a landowner seeks approval of a replacement plan after the proposed project
144.30has already affected the wetland, the local government unit may require the landowner to
144.31replace the affected wetland at a ratio not to exceed twice the replacement ratio otherwise
144.32required.
144.33    (o) A local government unit may request the board to reclassify a county or
144.34watershed on the basis of its percentage of presettlement wetlands remaining. After
144.35receipt of satisfactory documentation from the local government, the board shall change
144.36the classification of a county or watershed. If requested by the local government unit,
145.1the board must assist in developing the documentation. Within 30 days of its action to
145.2approve a change of wetland classifications, the board shall publish a notice of the change
145.3in the Environmental Quality Board Monitor.
145.4    (p) One hundred citizens who reside within the jurisdiction of the local government
145.5unit may request the local government unit to reclassify a county or watershed on the basis
145.6of its percentage of presettlement wetlands remaining. In support of their petition, the
145.7citizens shall provide satisfactory documentation to the local government unit. The local
145.8government unit shall consider the petition and forward the request to the board under
145.9paragraph (o) or provide a reason why the petition is denied.

145.10    Sec. 81. Minnesota Statutes 2014, section 103G.222, subdivision 3, is amended to read:
145.11    Subd. 3. Wetland replacement siting. (a) Impacted wetlands in a 50 to 80 percent
145.12area must be replaced in a 50 to 80 percent area or in a less than 50 percent area. Impacted
145.13wetlands in a less than 50 percent area must be replaced in a less than 50 percent area.
145.14All wetland replacement must follow this priority order:
145.15    (1) on site or in the same minor watershed as the impacted wetland;
145.16    (2) in the same watershed as the impacted wetland;
145.17    (3) in the same county or wetland bank service area as the impacted wetland; and
145.18    (4) in another wetland bank service area; and.
145.19    (5) statewide for public transportation projects, except that wetlands impacted in
145.20less than 50 percent areas must be replaced in less than 50 percent areas, and wetlands
145.21impacted in the seven-county metropolitan area must be replaced at a ratio of two to one in:
145.22(i) the affected county or, (ii) in another of the seven metropolitan counties, or (iii) in one
145.23of the major watersheds that are wholly or partially within the seven-county metropolitan
145.24area, but at least one to one must be replaced within the seven-county metropolitan area.
145.25    (b) The exception in paragraph (a), clause (5), does not apply to replacement
145.26completed using wetland banking credits established by a person who submitted a
145.27complete wetland banking application to a local government unit by April 1, 1996.
145.28(b) Notwithstanding paragraph (a), wetland banking credits approved according to
145.29a complete wetland banking application submitted to a local government unit by April
145.301, 1996, may be used to replace wetland impacts resulting from public transportation
145.31projects statewide.
145.32    (c) Notwithstanding paragraph (a), clauses (1) and (2), the priority order for
145.33replacement by wetland banking begins at paragraph (a), clause (3), according to rules
145.34adopted under section 103G.2242, subdivision 1.
146.1    (c) (d) When reasonable, practicable, and environmentally beneficial replacement
146.2opportunities are not available in siting priorities listed in paragraph (a), the applicant
146.3may seek opportunities at the next level.
146.4    (d) (e) For the purposes of this section, "reasonable, practicable, and environmentally
146.5beneficial replacement opportunities" are defined as opportunities that:
146.6    (1) take advantage of naturally occurring hydrogeomorphological conditions and
146.7require minimal landscape alteration;
146.8    (2) have a high likelihood of becoming a functional wetland that will continue
146.9in perpetuity;
146.10    (3) do not adversely affect other habitat types or ecological communities that are
146.11important in maintaining the overall biological diversity of the area; and
146.12    (4) are available and capable of being done after taking into consideration cost,
146.13existing technology, and logistics consistent with overall project purposes.
146.14    (e) Applicants and local government units shall rely on board-approved
146.15comprehensive inventories of replacement opportunities and watershed conditions,
146.16including the Northeast Minnesota Wetland Mitigation Inventory and Assessment (January
146.172010), in determining whether reasonable, practicable, and environmentally beneficial
146.18replacement opportunities are available.
146.19    (f) Regulatory agencies, local government units, and other entities involved in
146.20wetland restoration shall collaborate to identify potential replacement opportunities within
146.21their jurisdictional areas.
146.22    (g) The board must establish wetland replacement ratios and wetland bank service
146.23area priorities to implement the siting and targeting of wetland replacement and encourage
146.24the use of high priority areas for wetland replacement.

146.25    Sec. 82. Minnesota Statutes 2014, section 103G.2242, subdivision 1, is amended to
146.26read:
146.27    Subdivision 1. Rules. (a) The board, in consultation with the commissioner, shall
146.28adopt rules governing the approval of wetland value replacement plans under this section
146.29and public waters work permits affecting public waters wetlands under section 103G.245.
146.30These rules must address the criteria, procedure, timing, and location of acceptable
146.31replacement of wetland values; and may address the state establishment and administration
146.32of a wetland banking program for public and private projects, which may include including
146.33provisions allowing monetary payment to the wetland banking program for alteration of
146.34wetlands on agricultural land for an in-lieu fee program; the administrative, monitoring, and
146.35enforcement procedures to be used; and a procedure for the review and appeal of decisions
147.1under this section. In the case of peatlands, the replacement plan rules must consider the
147.2impact on carbon balance described in the report required by Laws 1990, chapter 587, and
147.3include the planting of trees or shrubs. Any in-lieu fee program established by the board
147.4must conform with Code of Federal Regulations, title 33, section 332.8, as amended.
147.5(b) After the adoption of the rules, a replacement plan must be approved by a
147.6resolution of the governing body of the local government unit, consistent with the
147.7provisions of the rules or a comprehensive wetland protection and management plan
147.8approved under section 103G.2243.
147.9(c) If the local government unit fails to apply the rules, or fails to implement a
147.10local comprehensive wetland protection and management plan established under section
147.11103G.2243 , the government unit is subject to penalty as determined by the board.

147.12    Sec. 83. Minnesota Statutes 2014, section 103G.2242, subdivision 2, is amended to
147.13read:
147.14    Subd. 2. Evaluation. (a) Questions concerning the public value, location, size,
147.15or type of a wetland shall be submitted to and determined by a Technical Evaluation
147.16Panel after an on-site inspection. The Technical Evaluation Panel shall be composed of
147.17a technical professional employee of the board, a technical professional employee of
147.18the local soil and water conservation district or districts, a technical professional with
147.19expertise in water resources management appointed by the local government unit, and
147.20a technical professional employee of the Department of Natural Resources for projects
147.21affecting public waters or wetlands adjacent to public waters. The panel shall use the
147.22"United States Army Corps of Engineers Wetland Delineation Manual" (January 1987),
147.23including updates, supplementary guidance, and replacements, if any, "Wetlands of
147.24the United States" (United States Fish and Wildlife Service Circular 39, 1971 edition),
147.25and "Classification of Wetlands and Deepwater Habitats of the United States" (1979
147.26edition). The panel shall provide the wetland determination and recommendations on
147.27other technical matters to the local government unit that must approve a replacement plan,
147.28wetland banking plan sequencing, exemption determination, no-loss determination, or
147.29wetland boundary or type determination and may recommend approval or denial of the
147.30plan. The authority must consider and include the decision of the Technical Evaluation
147.31Panel in their approval or denial of a plan or determination.
147.32    (b) Persons conducting wetland or public waters boundary delineations or type
147.33determinations are exempt from the requirements of chapter 326. The board may develop
147.34a professional wetland delineator certification program.
148.1(c) The board must establish an interagency team to assist in identifying and
148.2evaluating potential wetland replacement sites. The team must consist of members
148.3of the Technical Evaluation Panel and representatives from the Department of Natural
148.4Resources; the Pollution Control Agency; the United States Army Corps of Engineers, St.
148.5Paul district; and other organizations as determined by the board.

148.6    Sec. 84. Minnesota Statutes 2014, section 103G.2242, subdivision 3, is amended to
148.7read:
148.8    Subd. 3. Replacement completion. (a) Replacement of wetland values must be
148.9completed prior to or concurrent with the actual draining or filling of a wetland, unless:
148.10(1) an irrevocable bank letter of credit or other security financial assurance
148.11acceptable to the local government unit or the board is given to the local government unit
148.12or the board to guarantee the successful completion of the replacement.; or
148.13(2) the replacement is approved under an in-lieu fee program according to rules
148.14adopted under subdivision 1. In the case of an in-lieu fee program established by a
148.15board-approved sponsor, the board may require that a financial assurance in an amount
148.16and method acceptable to the board be given to the board to ensure the approved sponsor
148.17fulfills the sponsor's obligation to complete the required wetland replacement.
148.18The board may establish, sponsor, or administer a wetland banking program, which
148.19may include provisions allowing monetary payment to the wetland bank for impacts to
148.20wetlands on agricultural land, for impacts that occur in greater than 80 percent areas, and
148.21for public road projects. (b) The board may acquire land in fee title, purchase or accept
148.22easements, enter into agreements, and purchase existing wetland replacement credits to
148.23facilitate the wetland banking program. The board may establish in-lieu fee payment
148.24amounts and hold money in an account in the special revenue fund, which is appropriated
148.25to the board to be used solely for establishing replacement wetlands and administering the
148.26wetland banking program.
148.27(c) The board shall coordinate the establishment and operation of a wetland bank
148.28with the United States Army Corps of Engineers, the Natural Resources Conservation
148.29Service of the United States Department of Agriculture, and the commissioners of natural
148.30resources, agriculture, and the Pollution Control Agency.

148.31    Sec. 85. Minnesota Statutes 2014, section 103G.2242, subdivision 4, is amended to
148.32read:
148.33    Subd. 4. Decision. Upon receiving and considering all required data, the local
148.34government unit reviewing replacement plan applications, banking plan sequencing
149.1applications, and exemption or no-loss determination requests must act on all replacement
149.2plan applications, banking plan sequencing applications, and exemption or no-loss
149.3determination requests in compliance with section 15.99.

149.4    Sec. 86. Minnesota Statutes 2014, section 103G.2242, subdivision 12, is amended to
149.5read:
149.6    Subd. 12. Replacement credits. (a) No public or private wetland restoration,
149.7enhancement, or construction may be allowed for replacement unless specifically
149.8designated for replacement and paid for by the individual or organization performing the
149.9wetland restoration, enhancement, or construction, and is completed prior to any draining
149.10or filling of the wetland.
149.11    (b) Paragraph (a) does not apply to a wetland whose owner has paid back with
149.12interest the individual or organization restoring, enhancing, or constructing the wetland.
149.13    (c) Notwithstanding section 103G.222, subdivision 1, paragraph (i), the following
149.14actions, and others established in rule, that are consistent with criteria in rules adopted by
149.15the board in conjunction with the commissioners of natural resources and agriculture, are
149.16eligible for replacement credit as determined by the local government unit or the board,
149.17including enrollment in a statewide wetlands bank:
149.18    (1) reestablishment of permanent native, noninvasive vegetative cover on a wetland
149.19on agricultural land that was planted with annually seeded crops, was in a crop rotation
149.20seeding of pasture grasses or legumes, or was in a land retirement program during the
149.21past ten years;
149.22    (2) buffer areas of permanent native, noninvasive vegetative cover established or
149.23preserved on upland adjacent to replacement wetlands;
149.24    (3) wetlands restored for conservation purposes under terminated easements or
149.25contracts; and
149.26    (4) water quality treatment ponds constructed to pretreat storm water runoff prior
149.27to discharge to wetlands, public waters, or other water bodies, provided that the water
149.28quality treatment ponds must be associated with an ongoing or proposed project that
149.29will impact a wetland and replacement credit for the treatment ponds is based on the
149.30replacement of wetland functions and on an approved storm water management plan for
149.31the local government.; and
149.32    (5) in a greater than 80 percent area, restoration and protection of streams and
149.33riparian buffers that are important to the functions and sustainability of aquatic resources.
150.1    (d) Notwithstanding section 103G.222, subdivision 1, paragraphs (f) and (g), the
150.2board may establish by rule different replacement ratios for restoration projects with
150.3exceptional natural resource value.

150.4    Sec. 87. Minnesota Statutes 2014, section 103G.2242, subdivision 14, is amended to
150.5read:
150.6    Subd. 14. Fees established. (a) Fees must be assessed for managing wetland bank
150.7accounts and transactions as follows:
150.8    (1) account maintenance annual fee: one percent of the value of credits not to
150.9exceed $500;
150.10    (2) account establishment, deposit, or transfer: 6.5 percent of the value of credits not
150.11to exceed $1,000 per establishment, deposit, or transfer; and
150.12    (3) withdrawal fee: 6.5 percent of the value of credits withdrawn.
150.13    (b) The board may establish fees at or below the amounts in paragraph (a) for
150.14single-user or other dedicated wetland banking accounts.
150.15    (c) Fees for single-user or other dedicated wetland banking accounts established
150.16pursuant to section 103G.005, subdivision 10e, clause (4), are limited to establishment
150.17of a wetland banking account and are assessed at the rate of 6.5 percent of the value of
150.18the credits not to exceed $1,000.
150.19    (d) The board may assess a fee to pay the costs associated with establishing
150.20conservation easements, or other long-term protection mechanisms prescribed in the rules
150.21adopted under subdivision 1, on property used for wetland replacement.

150.22    Sec. 88. Minnesota Statutes 2014, section 103G.2251, is amended to read:
150.23103G.2251 STATE CONSERVATION EASEMENTS; WETLAND BANK
150.24CREDIT.
150.25    In greater than 80 percent areas, preservation of wetlands, riparian buffers, and
150.26watershed areas essential to maintaining important functions and sustainability of aquatic
150.27resources in the watershed that are protected by a permanent conservation easement
150.28as defined under section 84C.01 and held by the board may be eligible for wetland
150.29replacement or mitigation credits, according to rules adopted by the board. To be eligible
150.30for credit under this section, a conservation easement must be established after May 24,
150.312008, and approved by the board. Wetland areas on private lands preserved under this
150.32section are not eligible for replacement or mitigation credit if the area has been protected
150.33using public conservation funds.

151.1    Sec. 89. Minnesota Statutes 2014, section 103G.245, subdivision 2, is amended to read:
151.2    Subd. 2. Exceptions. A public waters work permit is not required for:
151.3(1) work in altered natural watercourses that are part of drainage systems established
151.4under chapter 103D or 103E if the work in the waters is undertaken according to chapter
151.5103D or 103E; or
151.6(2) a drainage project for a drainage system established under chapter 103E that does
151.7not substantially affect public waters.; or
151.8(3) culvert restoration or replacement of the same size and elevation, if the
151.9restoration or replacement does not impact a designated trout stream.

151.10    Sec. 90. Minnesota Statutes 2014, section 103G.271, subdivision 3, is amended to read:
151.11    Subd. 3. Permit restriction during summer months. The commissioner must not
151.12modify or restrict the amount of appropriation from a groundwater source authorized in a
151.13water use permit issued to irrigate agricultural land between May April 1 and October
151.141, or, for agricultural land with a crop, until November 15, unless the commissioner
151.15determines the authorized amount of appropriation endangers a domestic water supply.

151.16    Sec. 91. Minnesota Statutes 2014, section 103G.271, subdivision 5, is amended to read:
151.17    Subd. 5. Prohibition on once-through water use permits. (a) Except as provided
151.18in paragraph (c), the commissioner may not issue a water use permit to increase the
151.19volume of appropriation from a groundwater source for a once-through cooling system.
151.20(b) Except as provided in paragraph (c), once-through system water use permits
151.21using in excess of 5,000,000 gallons annually must be terminated by the commissioner,
151.22unless the discharge is into a public water basin within a nature preserve approved by the
151.23commissioner and established prior to January 1, 2001. The commissioner may issue a
151.24permit for a system in existence prior to January 1, 2015, for up to 5,000,000 gallons
151.25annually. Existing once-through systems must not be expanded and are required to convert
151.26to water efficient alternatives within the design life of existing equipment.
151.27(c) Notwithstanding paragraphs (a) and (b), the commissioner, with the approval of
151.28the commissioners of health and the Pollution Control Agency, may issue once-through
151.29system water use permits on an annual basis for groundwater thermal exchange devices
151.30or aquifer storage and recovery systems that return all once-through system water to the
151.31source aquifer. Water use permit processing fees in subdivision 6, paragraph (a), apply
151.32to all water withdrawals under this paragraph, including any reuse of water returned to
151.33the source aquifer.

152.1    Sec. 92. Minnesota Statutes 2014, section 103G.271, subdivision 6a, is amended to read:
152.2    Subd. 6a. Payment of fees for past unpermitted appropriations. An entity that
152.3appropriates water without a required permit under subdivision 1 must pay the applicable
152.4water use permit processing fee specified in subdivision 6 for the period during which the
152.5unpermitted appropriation occurred. The fees for unpermitted appropriations are required
152.6for the previous seven calendar years after being notified of the need for a permit. This
152.7fee is in addition to any other fee or penalty assessed. The commissioner may waive
152.8payment of fees for past unpermitted appropriations for a residential system permitted
152.9under subdivision 5, paragraph (b).

152.10    Sec. 93. Minnesota Statutes 2014, section 103G.287, subdivision 1, is amended to read:
152.11    Subdivision 1. Applications for groundwater appropriations; preliminary well
152.12construction approval. (a) Groundwater use permit applications are not complete until
152.13the applicant has supplied:
152.14(1) a water well record as required by section 103I.205, subdivision 9, information
152.15on the subsurface geologic formations penetrated by the well and the formation or aquifer
152.16that will serve as the water source, and geologic information from test holes drilled to
152.17locate the site of the production well;
152.18(2) the maximum daily, seasonal, and annual pumpage rates and volumes being
152.19requested;
152.20(3) information on groundwater quality in terms of the measures of quality
152.21commonly specified for the proposed water use and details on water treatment necessary
152.22for the proposed use;
152.23(4) an inventory of existing wells within 1-1/2 miles of the proposed production well
152.24or within the area of influence, as determined by the commissioner. The inventory must
152.25include information on well locations, depths, geologic formations, depth of the pump or
152.26intake, pumping and nonpumping water levels, and details of well construction;
152.27(5) (4) the results of an aquifer test completed according to specifications approved
152.28by the commissioner. The test must be conducted at the maximum pumping rate requested
152.29in the application and for a length of time adequate to assess or predict impacts to other
152.30wells and surface water and groundwater resources. The permit applicant is responsible
152.31for all costs related to the aquifer test, including the construction of groundwater and
152.32surface water monitoring installations, and water level readings before, during, and after
152.33the aquifer test; and
152.34(6) (5) the results of any assessments conducted by the commissioner under
152.35paragraph (c).
153.1(b) The commissioner may waive an application requirement in this subdivision
153.2if the information provided with the application is adequate to determine whether the
153.3proposed appropriation and use of water is sustainable and will protect ecosystems, water
153.4quality, and the ability of future generations to meet their own needs.
153.5(c) The commissioner shall provide an assessment of a proposed well needing a
153.6groundwater appropriation permit. The commissioner shall evaluate the information
153.7submitted as required under section 103I.205, subdivision 1, paragraph (f), and determine
153.8whether the anticipated appropriation request is likely to meet the applicable requirements
153.9of this chapter. If the appropriation request is likely to meet applicable requirements, the
153.10commissioner shall provide the person submitting the information with a letter providing
153.11preliminary approval to construct the well.

153.12    Sec. 94. [103G.289] WELL INTERFERENCE; WELL SEALING.
153.13The commissioner shall not validate a well interference claim if the affected well has
153.14been sealed prior to the completion of the commissioner's investigation of the complaint.
153.15If the well is sealed prior to completion of the investigation, the commissioner must
153.16dismiss the complaint.

153.17    Sec. 95. Minnesota Statutes 2014, section 103G.291, subdivision 3, is amended to read:
153.18    Subd. 3. Water supply plans; demand reduction. (a) Every public water supplier
153.19serving more than 1,000 people must submit a water supply plan to the commissioner
153.20for approval by January 1, 1996. In accordance with guidelines developed by the
153.21commissioner, the plan must address projected demands, adequacy of the water supply
153.22system and planned improvements, existing and future water sources, natural resource
153.23impacts or limitations, emergency preparedness, water conservation, supply and demand
153.24reduction measures, and allocation priorities that are consistent with section 103G.261.
153.25Public water suppliers must update their plan and, upon notification, submit it to the
153.26commissioner for approval every ten years.
153.27    (b) The water supply plan in paragraph (a) is required for all communities in the
153.28metropolitan area, as defined in section 473.121, with a municipal water supply system
153.29and is a required element of the local comprehensive plan required under section 473.859.
153.30Water supply plans or updates submitted after December 31, 2008, must be consistent
153.31with the metropolitan area master water supply plan required under section 473.1565,
153.32subdivision 1, paragraph (a), clause (2).
153.33    (c) Public water suppliers serving more than 1,000 people must encourage
153.34water conservation by employing water use demand reduction measures, as defined in
154.1subdivision 4, paragraph (a), before requesting approval from the commissioner of health
154.2under section 144.383, paragraph (a), to construct a public water supply well or requesting
154.3an increase in the authorized volume of appropriation. The commissioner of natural
154.4resources and the water supplier shall use a collaborative process to achieve demand
154.5reduction measures as a part of a water supply plan review process.
154.6    (d) Public water suppliers serving more than 1,000 people must submit records
154.7that indicate the number of connections and amount of use by customer category and
154.8volume of water unaccounted for with the annual report of water use required under
154.9section 103G.281, subdivision 3.
154.10    (e) For the purposes of this section, "public water supplier" means an entity that owns,
154.11manages, or operates a public water supply, as defined in section 144.382, subdivision 4.
154.12EFFECTIVE DATE.This section is effective the day following final enactment.

154.13    Sec. 96. Minnesota Statutes 2014, section 103G.301, subdivision 5a, is amended to read:
154.14    Subd. 5a. Town fees limited exemption. Notwithstanding this section or any
154.15other law, no permit application, general permit notification, or field inspection fee shall
154.16be charged to a town in connection with the construction or alteration of a town road,
154.17bridge, or culvert shall exceed $100.

154.18    Sec. 97. [114C.40] VOLUNTARY SELF REPORTING OF VIOLATIONS.
154.19    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
154.20have the meaning given.
154.21(b) "Commissioner" means the commissioner of the Pollution Control Agency.
154.22(c) "Environmental requirement" means a requirement in a law administered by the
154.23agency, a rule adopted by the agency, a permit or order issued by the agency, an agreement
154.24entered into with the agency, or a court order issued pursuant to any of the foregoing.
154.25(d) "Regulated entity" means a public or private organization that is subject to
154.26environmental requirements.
154.27    Subd. 2. Enforcement delay. The commissioner must defer for at least 90 days
154.28enforcement of an environmental requirement against a regulated entity if:
154.29(1) violation of the environmental requirement was first identified by the regulated
154.30entity or an employee of or person contracted by the regulated entity;
154.31(2) the regulated entity notified the commissioner of the violation within two
154.32business days of it coming to the regulated entity's attention;
154.33(3) the regulated entity has not been subject to an enforcement action within the past
154.34two years from the date of the notification under clause (2); and
155.1(4) the regulated entity has committed, in writing, to correct the violation as
155.2expeditiously as possible under the circumstances.
155.3    Subd. 3. Penalties waived. The commissioner must not impose or bring an action
155.4for any administrative, civil, or criminal penalties against a regulated entity if, after the
155.590-day delay provided under subdivision 2, the regulated entity has corrected the violation
155.6or has a schedule to correct the violation approved by the commissioner.
155.7    Subd. 4. Exceptions. Notwithstanding subdivisions 2 and 3, the commissioner
155.8may, at any time, bring:
155.9(1) a criminal enforcement action against any person who commits a violation
155.10under section 609.671;
155.11(2) a civil or administrative enforcement action, which may include a penalty, under
155.12section 115.071 or 116.072, against the regulated entity if:
155.13(i) a violation caused serious harm to, or presents an imminent and substantial
155.14endangerment to, human health or the environment;
155.15(ii) a violation is of the specific terms of an administrative order, a judicial order or
155.16consent decree, a stipulation agreement, or a schedule of compliance;
155.17(iii) a violation has resulted in a substantial economic benefit which gives the
155.18regulated entity a clear advantage over its business competitors; or
155.19(iv) a violation is identified through a legally mandated monitoring or sampling
155.20requirement prescribed by statute, regulation, permit, judicial or administrative order,
155.21or consent agreement; or
155.22(3) an enforcement action against a regulated entity to enjoin an imminent and
155.23substantial danger under section 116.11.
155.24    Subd. 5. Reporting required by law. Nothing in this section alters the obligation of
155.25any regulated entity to report releases, violations, or other matters that are required to be
155.26reported by state or federal law, rule, permit, or enforcement action.

155.27    Sec. 98. [115.035] INDEPENDENT PEER REVIEW OF WATER QUALITY
155.28STANDARDS.
155.29(a) For the purposes of this section, "independent peer review" means a peer review
155.30conducted by an expert or experts in an area related to the work being reviewed who was
155.31not directly or indirectly involved with the work conducted or contracted by the agency
155.32and who is not currently employed by the agency.
155.33(b) The commissioner of the Pollution Control Agency shall ensure that any
155.34proposed change to a water quality standard under this chapter or chapter 116 is subject to
155.35an independent peer review when:
156.1(1) the estimated financial impact to affected permittees is $50,000,000 or more, in
156.2total, within the first five years of implementation;
156.3(2) the change supports or proposes a significant new precedent, model, or
156.4methodology; or
156.5(3) the change addresses a significant controversial issue.
156.6(c) The commissioner must provide notice and take public comment on the charge
156.7questions for independent peer review and must allow written and oral public comment as
156.8part of the independent peer review process and the peer review report. Documentation of
156.9compliance with the notice and comment requirements and the peer review report must
156.10be included in the statement of need and reasonableness.
156.11(d) The commissioner shall ensure that peer review is conducted in accordance
156.12with the guidance contained in the United States Environmental Protection Agency's
156.13Peer Review Handbook.

156.14    Sec. 99. Minnesota Statutes 2014, section 115.44, is amended by adding a subdivision
156.15to read:
156.16    Subd. 9. Annual report. (a) By January 15 each year, the commissioner shall
156.17post on the Pollution Control Agency's Web site a report on the agency's activities
156.18the previous calendar year to implement standards and classification requirements into
156.19national pollutant discharge elimination system and state disposal system permits held by
156.20municipalities. The report must include:
156.21(1) a summary of permits issued or reissued over the previous calendar year,
156.22including any changes to permitted effluent limits due to water quality standards adopted
156.23or revised during the previous permit term;
156.24(2) highlights of innovative approaches employed by the agency and municipalities
156.25to develop and achieve permit requirements in a cost-effective manner;
156.26(3) a summary of standards development and water quality rulemaking activities
156.27over the previous calendar year, including economic analyses;
156.28(4) a summary of standards development and water quality rulemaking activities
156.29anticipated for the next three years, including economic analyses;
156.30(5) a process and timeframe for municipalities to provide input to the agency
156.31regarding their needs based on the information provided in the report; and
156.32(6) a list of anticipated permitting initiatives in the next calendar year that may
156.33impact municipalities and the agency's plan for involving the municipalities throughout
156.34the planning and decision making process. The plan must include opportunities for input
156.35and public comment from municipalities on rulemaking initiatives prior to preparation of
157.1a statement of need and reasonableness required under section 14.131. The commissioner
157.2must ensure the agency's plan under this clause is implemented.
157.3(b) For the purposes of this section, "economic analyses" must include assessments
157.4of the potential costs to regulated municipalities associated with water quality standards
157.5or rules proposed by the agency.

157.6    Sec. 100. Minnesota Statutes 2014, section 115.55, subdivision 1, is amended to read:
157.7    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to sections
157.8115.55 to 115.56.
157.9    (b) "Advisory committee" means the Advisory Committee on Subsurface Sewage
157.10Treatment Systems established under the subsurface sewage treatment system rules. The
157.11advisory committee must be appointed to ensure geographic representation of the state
157.12and include elected public officials.
157.13    (c) "Applicable requirements" means:
157.14    (1) local ordinances that comply with the subsurface sewage treatment system rules,
157.15as required in subdivision 2; or
157.16    (2) in areas without compliant ordinances described in clause (1), the subsurface
157.17sewage treatment system rules.
157.18(d) "Building sewer connected to a subsurface sewage treatment system" means the
157.19pipe that connects a structure to a subsurface sewage treatment system. Building sewers
157.20connected to subsurface sewage treatment systems are codefined as both plumbing and
157.21subsurface sewage treatment system components.
157.22    (d) (e) "City" means a statutory or home rule charter city.
157.23    (e) (f) "Commissioner" means the commissioner of the Pollution Control Agency.
157.24    (f) (g) "Dwelling" means a building or place used or intended to be used by human
157.25occupants as a single-family or two-family unit.
157.26    (g) (h) "Subsurface sewage treatment system" or "system" means a sewage treatment
157.27system, or part thereof, that uses subsurface soil treatment and disposal, or a holding tank,
157.28serving a dwelling, other establishment, or a group thereof, and that does not require a
157.29state permit. Subsurface sewage treatment system includes a building sewer connected
157.30to a subsurface sewage treatment system.
157.31    (h) (i) "Subsurface sewage treatment system professional" means an inspector,
157.32installer, designer, service provider, or maintainer.
157.33    (i) (j) "Subsurface sewage treatment system rules" means rules adopted by the
157.34agency that establish minimum standards and criteria for the design, location, installation,
157.35use, maintenance, and closure of subsurface sewage treatment systems.
158.1    (j) (k) "Inspector" means a person who inspects subsurface sewage treatment
158.2systems for compliance with the applicable requirements.
158.3    (k) (l) "Installer" means a person who constructs or repairs subsurface sewage
158.4treatment systems.
158.5    (l) (m) "Local unit of government" means a township, city, or county.
158.6    (m) (n) "Performance-based system" means a system that is designed specifically
158.7for environmental conditions on a site and is designed to adequately protect the public
158.8health and the environment and provide consistent, reliable, long-term performance. At a
158.9minimum, a performance based system must ensure that applicable water quality standards
158.10are met in both ground and surface water that ultimately receive the treated sewage.
158.11    (n) (o) "Maintainer " means a person who removes solids and liquids from and
158.12maintains and repairs components of subsurface sewage treatment systems including, but
158.13not limited to, sewage, aerobic, and holding tanks.
158.14    (o) (p) "Seasonal dwelling" means a dwelling that is occupied or used for less than
158.15180 days per year and less than 120 consecutive days.
158.16    (p) (q) "Septic system tank" means any covered receptacle designed, constructed,
158.17and installed as part of a subsurface sewage treatment system.
158.18    (q) (r) "Designer" means a person who:
158.19    (1) investigates soils and site characteristics to determine suitability, limitations, and
158.20sizing requirements; and
158.21    (2) designs subsurface sewage treatment systems.
158.22    (r) (s) "Straight-pipe system" means a sewage disposal system that transports raw or
158.23partially treated sewage directly to a lake, a stream, a drainage system, or ground surface.

158.24    Sec. 101. Minnesota Statutes 2014, section 115.56, subdivision 2, is amended to read:
158.25    Subd. 2. License required. (a) Except as provided in paragraph (b), a person may
158.26not design, install, maintain, pump, inspect, or provide service to a subsurface sewage
158.27treatment system without a license issued by the commissioner. Licenses issued under this
158.28section allow work on subsurface sewage treatment systems that do not require a state
158.29permit using prescriptive designs and design guidances provided by the agency. Licensees
158.30who design systems using these prescriptive designs and design guidances are not subject
158.31to the additional licensing requirements of section 326.03.
158.32    (b) A license is not required for a person who complies with the applicable
158.33requirements if the person is:
158.34    (1) a qualified employee of state or local government who is a certified professional;
159.1    (2) an individual who constructs a subsurface sewage treatment system on land that
159.2is owned or leased by the individual and functions solely as the individual's dwelling or
159.3seasonal dwelling, unless specifically disallowed in local ordinance. A person constructing
159.4a subsurface sewage treatment system under this clause must comply with all local
159.5administrative and technical requirements. In addition, the system must be inspected
159.6before being covered and a compliance report must be provided to the local unit of
159.7government after the inspection;
159.8    (3) a farmer who pumps and disposes of sewage waste from subsurface sewage
159.9treatment systems, holding tanks, and privies on land that is owned or leased by the
159.10farmer; or
159.11    (4) an individual who performs labor or services for a licensed business under this
159.12section in connection with the design, installation, operation, pumping, or inspection of a
159.13subsurface sewage treatment system at the direction and under the personal supervision of
159.14a person certified under this section.
159.15    (c) The commissioner, in conjunction with the University of Minnesota Extension
159.16Service or another higher education institution, shall ensure adequate training and design
159.17guidance exists for subsurface sewage treatment system certified professionals.
159.18    (d) The commissioner shall conduct examinations to test the knowledge of applicants
159.19for certification and shall issue documentation of certification.
159.20    (e) Licenses may be issued only upon submission of general liability insurance, a
159.21corporate surety bond in the amount of at least $10,000 $25,000, and the name of the
159.22individual who will be the designated certified individual for that business. The bond may
159.23be for both plumbing work and subsurface sewage treatment work if the bond complies
159.24with the requirements of this section and satisfies the requirements and references
159.25identified in section 326B.46, subdivision 2.
159.26    (f) Local units of government may not require additional local licenses for
159.27subsurface sewage treatment system businesses.
159.28    (g) No other professional license under section 326.03 is required to design, install,
159.29maintain, inspect, or provide service for a subsurface sewage treatment system that does
159.30not require a state permit using prescriptive designs and design guidances provided by
159.31the agency if the system designer, installer, maintainer, inspector, or service provider
159.32is licensed under this subdivision and the local unit of government has not adopted
159.33additional requirements.

159.34    Sec. 102. Minnesota Statutes 2014, section 115A.03, subdivision 25a, is amended to
159.35read:
160.1    Subd. 25a. Recyclable materials. "Recyclable materials" means materials that are
160.2separated from mixed municipal solid waste for the purpose of recycling or composting,
160.3including paper, glass, plastics, metals, automobile oil, batteries, and source-separated
160.4compostable materials, and sole source food waste streams that are managed through
160.5biodegradative processes. Refuse-derived fuel or other material that is destroyed by
160.6incineration is not a recyclable material.

160.7    Sec. 103. Minnesota Statutes 2014, section 115A.03, subdivision 32a, is amended to
160.8read:
160.9    Subd. 32a. Source-separated compostable materials. "Source-separated
160.10compostable materials" means materials that:
160.11    (1) are separated at the source by waste generators for the purpose of preparing
160.12them for use as compost;
160.13    (2) are collected separately from mixed municipal solid waste, and are governed by
160.14the licensing provisions of section 115A.93;
160.15    (3) are comprised of food wastes, fish and animal waste, plant materials, diapers,
160.16sanitary products, and paper that is not recyclable because the commissioner has
160.17determined that no other person is willing to accept the paper for recycling;
160.18    (4) are delivered to a facility to undergo controlled microbial degradation to yield
160.19a humus-like product meeting the agency's class I or class II, or equivalent, compost
160.20standards and where process residues rejects do not exceed 15 percent by weight of the
160.21total material delivered to the facility; and
160.22    (5) may be delivered to a transfer station, mixed municipal solid waste processing
160.23facility, or recycling facility only for the purposes of composting or transfer to a
160.24composting facility, unless the commissioner determines that no other person is willing
160.25to accept the materials.

160.26    Sec. 104. Minnesota Statutes 2014, section 115A.1314, subdivision 1, is amended to
160.27read:
160.28    Subdivision 1. Registration fee. (a) Each manufacturer who registers under section
160.29115A.1312 must, by September 1, 2007, and each year thereafter, pay to the commissioner
160.30of revenue an annual registration fee. The commissioner of revenue must deposit the fee
160.31in the state treasury and credit the fee to the environmental fund.
160.32    (b) The registration fee is equal to a base fee of $2,500, plus a variable recycling
160.33fee calculated according to the formula:
160.34    ((A x B) - (C + D)) x E, where:
161.1    (1) A = the number of pounds of a manufacturer's video display devices sold to
161.2households during the previous program year, as reported to the department under section
161.3115A.1316, subdivision 1 ;
161.4    (2) B = the proportion of sales of video display devices required to be recycled, set at
161.50.6 for the first program year and 0.8 for the second program year and every year thereafter;
161.6    (3) C = the number of pounds of covered electronic devices recycled by a
161.7manufacturer from households during the previous program year, as reported to the
161.8department under section 115A.1316, subdivision 1;
161.9    (4) D = the number of recycling credits a manufacturer elects to use to calculate the
161.10variable recycling fee, as reported to the department under section 115A.1316, subdivision
161.111; and
161.12    (5) E = the estimated per-pound cost of recycling, initially set at $0.50 per pound for
161.13manufacturers who recycle less than 50 percent of the product (A x B); $0.40 per pound
161.14for manufacturers who recycle at least 50 percent but less than 90 percent of the product
161.15(A x B); and $0.30 per pound for manufacturers who recycle at least 90 percent but less
161.16than 100 percent of the product (A x B).
161.17    (c) If, as specified in paragraph (b), the term C - (A x B) equals a positive number of
161.18pounds, that amount is defined as the manufacturer's recycling credits. A manufacturer
161.19may retain recycling credits to be added, in whole or in part, to the actual value of C, as
161.20reported under section 115A.1316, subdivision 2, during any succeeding program year,
161.21provided that no more than 25 percent of a manufacturer's obligation (A x B) for any
161.22program year may be met with recycling credits generated in a prior program year. A
161.23manufacturer may sell any portion or all of its recycling credits to another manufacturer, at
161.24a price negotiated by the parties, who may use the credits in the same manner.
161.25    (d) For the purpose of calculating a manufacturer's variable recycling fee under
161.26paragraph (b), the weight of covered electronic devices collected from households located
161.27outside the 11-county metropolitan area, as defined in subdivision 2, paragraph (c), is
161.28calculated at 1.5 times their actual weight.
161.29    (e) The registration fee for the initial program year and the base registration fee
161.30thereafter for a manufacturer who produces fewer than 100 video display devices for sale
161.31annually to households is $1,250.
161.32(f) For the ninth program year, the agency shall publish a statewide recycling goal of
161.3316,000,000 pounds.
161.34(g) For the ninth program year, the agency shall determine each registered
161.35manufacturer's market share of video display devices to be collected and recycled based
161.36on the manufacturer's percentage share of the total weight of video display devices sold
162.1as reported to the department for the eighth program year as reported to the agency by
162.2July 15, 2015. By July 30, 2015, the agency shall provide each manufacturer with a
162.3determination of its share of video display devices to be collected and recycled, which
162.4is the quotient of the total weight of the manufacturer's video display devices sold to
162.5households in the eighth program year, divided by the total weight of all manufacturers'
162.6video display devices sold to households in this state based on reporting to the agency for
162.7the eighth program year, then applied proportionally to the statewide recycling goal of
162.816,000,000 pounds as specified in paragraph (f).
162.9(h) If a manufacturer's obligation for the recycling of video display devices as
162.10determined in paragraph (b), clauses (1) and (2), by weight is higher than the obligation
162.11determined by the agency in paragraph (g), then the higher number is the obligation for
162.12program year nine.
162.13(i) For the ninth program year, a manufacturer that did not report sales data to the
162.14department for the eighth or ninth program years shall be subject to a recycling obligation
162.15that is equal to 80 percent by weight of the manufacturer's video display devices sold
162.16to households.

162.17    Sec. 105. Minnesota Statutes 2014, section 115A.1415, subdivision 16, is amended to
162.18read:
162.19    Subd. 16. Administrative fee. (a) The stewardship organization or individual
162.20producer submitting a stewardship plan shall pay an annual administrative fee to the
162.21commissioner. The agency may establish a variable fee based on relevant factors,
162.22including, but not limited to, the portion of architectural paint sold in the state by members
162.23of the organization compared to the total amount of architectural paint sold in the state by
162.24all organizations submitting a stewardship plan.
162.25    (b) Prior to July 1, 2014, and before July 1 annually thereafter, the agency shall
162.26identify the costs it incurs under this section. The agency shall set the fee at an amount
162.27that, when paid by every stewardship organization or individual producer that submits a
162.28stewardship plan, is adequate to reimburse the agency's full costs of administering this
162.29section. The total amount of annual fees collected under this subdivision must not exceed
162.30the amount necessary to reimburse costs incurred by the agency to administer this section.
162.31    (c) A stewardship organization or individual producer subject to this subdivision
162.32must pay the agency's administrative fee under paragraph (a) on or before July 1, 2014,
162.33and annually thereafter. Each year after the initial payment, the annual administrative fee
162.34may not exceed five percent of the aggregate stewardship assessment added to the cost of
162.35all architectural paint sold by producers in the state for the preceding calendar year.
163.1    (d) All fees received under this section shall be deposited in the state treasury and
163.2credited to a product stewardship account in the special revenue fund. For fiscal years
163.32014 and, 2015, 2016, and 2017, the amount collected under this section is annually
163.4appropriated to the agency to implement and enforce this section.

163.5    Sec. 106. Minnesota Statutes 2014, section 115A.551, subdivision 2a, is amended to
163.6read:
163.7    Subd. 2a. County recycling goals. (a) By December 31, 2030, each county will
163.8have as a goal to recycle the following amounts:
163.9(1) for a county outside of the metropolitan area, 35 percent by weight of total
163.10solid waste generation; and
163.11(2) for a metropolitan county, 75 percent by weight of total solid waste generation.
163.12(b) Each county will develop and implement or require political subdivisions within
163.13the county to develop and implement programs, practices, or methods designed to meet its
163.14recycling goal. Nothing in this section or in any other law may be construed to prohibit a
163.15county from establishing a higher recycling goal.
163.16(c) Any quantified recyclable materials that meet the definition in subdivision 1,
163.17paragraph (a), or section 115A.03, subdivision 25a, are eligible to be counted toward a
163.18county's recycling goal under this subdivision.

163.19    Sec. 107. Minnesota Statutes 2014, section 115A.557, subdivision 2, is amended to read:
163.20    Subd. 2. Purposes for which money may be spent. (a) A county receiving money
163.21distributed by the commissioner under this section may use the money only for the
163.22development and implementation of programs to:
163.23(1) reduce the amount of solid waste generated;
163.24(2) recycle the maximum amount of solid waste technically feasible;
163.25(3) create and support markets for recycled products;
163.26(4) remove problem materials from the solid waste stream and develop proper
163.27disposal options for them;
163.28(5) inform and educate all sectors of the public about proper solid waste management
163.29procedures;
163.30(6) provide technical assistance to public and private entities to ensure proper solid
163.31waste management;
163.32(7) provide educational, technical, and financial assistance for litter prevention;
163.33(8) process mixed municipal solid waste generated in the county at a resource
163.34recovery facility located in Minnesota; and
164.1(9) compost source-separated compostable materials, including the provision of
164.2receptacles for residential composting.;
164.3(10) prevent food waste or collect and transport food donated to humans or to be
164.4fed to animals; and
164.5(11) process source-separated compostable materials that are to be used to produce
164.6Class I or Class II compost, as defined in Minnesota Rules, part 7035.2836, after being
164.7processed in an anaerobic digester, but not to construct buildings or acquire equipment.
164.8(b) Beginning in fiscal year 2015 and continuing thereafter, of any money distributed
164.9by the commissioner under this section to a metropolitan county, as defined in section
164.10473.121, subdivision 4 , that exceeds the amount the county was eligible to receive under
164.11this section in fiscal year 2014: (1) at least 50 percent must be expended on activities in
164.12paragraph (a), clause clauses (9) to (11); and (2) the remainder must be expended on
164.13activities in paragraph (a), clauses (1) to (7) and (9) to (11) that advance the county toward
164.14achieving its recycling goal under section 115A.551.
164.15EFFECTIVE DATE.This section is effective the day following final enactment.

164.16    Sec. 108. [115A.565] RECYCLING COMPETITIVE GRANT PROGRAM.
164.17    Subdivision 1. Grant program established. The commissioner shall make
164.18competitive grants to political subdivisions to establish curbside recycling or composting,
164.19increase recycling or composting, reduce the amount of recyclable materials entering
164.20disposal facilities, or reduce the costs associated with hauling waste by locating collection
164.21sites as close as possible to the site where the waste is generated. To be eligible for grants
164.22under this section, a political subdivision must be located outside the seven-county
164.23metropolitan area and a city must have a population of less than 45,000.
164.24    Subd. 2. Application. (a) The commissioner must develop forms and procedures
164.25for soliciting and reviewing applications for grants under this section.
164.26(b) The determination of whether to make a grant under this section is within the
164.27discretion of the commissioner, subject to subdivision 4. The commissioner's decisions
164.28are not subject to judicial review, except for abuse of discretion.
164.29    Subd. 3. Priorities; eligible projects. (a) If applications for grants exceed the
164.30available appropriations, grants must be made for projects that, in the commissioner's
164.31judgment, provide the highest return in public benefits.
164.32(b) To be eligible to receive a grant, a project must:
164.33(1) be locally administered;
164.34(2) have an educational component and measurable outcomes;
164.35(3) request $250,000 or less;
165.1(4) demonstrate local direct and indirect matching support of at least a quarter
165.2amount of the grant request; and
165.3(5) include at least one of the following elements:
165.4(i) transition to residential recycling through curbside or centrally located collection
165.5sites;
165.6(ii) development of local recycling systems to support curbside recycling; or
165.7(iii) development or expansion of local recycling systems to support recycling bulk
165.8materials, including, but not limited to, electronic waste.
165.9    Subd. 4. Cancellation of grant. If a grant is awarded under this section and
165.10funds are not encumbered for the grant within four years after the award date, the grant
165.11must be canceled.

165.12    Sec. 109. Minnesota Statutes 2014, section 115A.93, subdivision 1, is amended to read:
165.13    Subdivision 1. License and registration required; reporting. (a) A person may
165.14not collect mixed municipal solid waste for hire without a license from the jurisdiction
165.15where the mixed municipal solid waste is collected. The local licensing entity shall submit
165.16a list of licensed collectors to the agency.
165.17(b) A person may not collect recyclable materials for hire unless registered with the
165.18agency. If a person is licensed under paragraph (a), the person need not register with
165.19the agency under this paragraph.
165.20(c) The agency, in consultation with the Solid Waste Management Coordinating
165.21Board, the Association of Minnesota Counties, the Minnesota Solid Waste Administrators
165.22Association, and representatives from the waste industry shall, by July 1, 2016, develop
165.23uniform short and long reporting forms that will reduce duplicative reporting to
165.24governmental units by collectors of solid waste and recyclable materials.
165.25(d) A collector of mixed municipal solid waste or recyclable materials shall separately
165.26report to the agency on an annual basis information including, but not limited to, the
165.27quantity of mixed municipal solid waste and the quantity of recyclable materials collected:
165.28(1) from commercial customers;
165.29(2) from residential customers;
165.30(3) by county of origin; and
165.31(4) by destination of the material.

165.32    Sec. 110. Minnesota Statutes 2014, section 115B.34, subdivision 2, is amended to read:
166.1    Subd. 2. Property damage losses. (a) Losses compensable by the fund for property
166.2damage are limited to the following losses caused by damage to the principal residence of
166.3the claimant:
166.4(1) the reasonable cost of replacing or decontaminating the primary source of
166.5drinking water for the property not to exceed the amount actually expended by the
166.6claimant or assessed by a local taxing authority, if the Department of Health has confirmed
166.7that the remedy provides safe drinking water and advised that the water not be used for
166.8drinking or determined that the replacement or decontamination of the source of drinking
166.9water was necessary, up to a maximum of $25,000;
166.10(2) the reasonable cost to install a mitigation system for the claimant's principal
166.11residence, not to exceed the amount actually expended by the claimant, if the agency has
166.12recommended such installation to protect human health due to soil vapor intrusion into
166.13the residence from releases of harmful substances. Reimbursement of eligible claims
166.14shall not exceed $25,000;
166.15(2) (3) losses incurred as a result of a bona fide sale of the property at less than
166.16the appraised market value under circumstances that constitute a hardship to the owner,
166.17limited to 75 percent of the difference between the appraised market value and the selling
166.18price, but not to exceed $25,000; and
166.19(3) (4) losses incurred as a result of the inability of an owner in hardship circumstances
166.20to sell the property due to the presence of harmful substances, limited to the increase in
166.21costs associated with the need to maintain two residences, but not to exceed $25,000.
166.22(b) In computation of the loss under paragraph (a), clause (3) (4), the agency shall
166.23offset the loss by the amount of any income received by the claimant from the rental
166.24of the property.
166.25(c) For purposes of paragraph (a), the following definitions apply:
166.26(1) "appraised market value" means an appraisal of the market value of the property
166.27disregarding any decrease in value caused by the presence of a harmful substance in
166.28or on the property; and
166.29(2) "hardship" means an urgent need to sell the property based on a special
166.30circumstance of the owner including catastrophic medical expenses, inability of the owner
166.31to physically maintain the property due to a physical or mental condition, and change of
166.32employment of the owner or other member of the owner's household requiring the owner
166.33to move to a different location.
166.34(d) Appraisals are subject to agency approval. The agency may adopt rules
166.35governing approval of appraisals, criteria for establishing a hardship, and other matters
166.36necessary to administer this subdivision.

167.1    Sec. 111. Minnesota Statutes 2014, section 115B.48, is amended by adding a
167.2subdivision to read:
167.3    Subd. 9. Owner or operator. "Owner or operator" means a person who:
167.4(1) owns or has owned a dry cleaning facility; or
167.5(2) owns or owned real property on which a dry cleaning facility operates or operated.
167.6EFFECTIVE DATE.This section is effective only upon enactment of a transfer
167.7of $743,000 in fiscal year 2016 from the general account in the remediation fund to the
167.8dry cleaner environmental response and reimbursement account for reimbursement
167.9of remediation costs by persons other than responsible parties, as specified in article 3,
167.10section 2, subdivision 4.

167.11    Sec. 112. Minnesota Statutes 2014, section 116.02, subdivision 1, is amended to read:
167.12    Subdivision 1. Creation. A pollution control agency, designated as the Minnesota
167.13Pollution Control Agency, is hereby created. The agency shall consist of the commissioner
167.14and eight members appointed by the governor, by and with the advice and consent of the
167.15senate. One of such members shall be a person knowledgeable in the field of agriculture
167.16and one shall be representative of organized labor.

167.17    Sec. 113. Minnesota Statutes 2014, section 116.02, subdivision 5, is amended to read:
167.18    Subd. 5. Agency is successor to commission. The Pollution Control Agency is
167.19the successor of the Water Pollution Control Commission, and all powers and duties
167.20now vested in or imposed upon said commission by chapter 115, or any act amendatory
167.21thereof or supplementary thereto, are hereby transferred to, imposed upon, and vested in
167.22the Minnesota commissioner of the Pollution Control Agency, except as to those matters
167.23pending before the commission in which hearings have been held and evidence has been
167.24adduced. The Water Pollution Commission shall complete its action in such pending
167.25matters not later than six months from May 26, 1967. The Water Pollution Control
167.26Commission, as heretofore constituted, is hereby abolished, (a) effective upon completion
167.27of its action in the pending cases, as hereinbefore provided for; or (b) six months from
167.28May 26, 1967, whichever is the earlier.

167.29    Sec. 114. Minnesota Statutes 2014, section 116.03, subdivision 1, is amended to read:
167.30    Subdivision 1. Office. (a) The Office of Commissioner of the Pollution Control
167.31Agency is created and is under the supervision and control of the commissioner, who is
167.32appointed by the governor under the provisions of section 15.06.
168.1(b) The commissioner may appoint a deputy commissioner and assistant
168.2commissioners who shall be in the unclassified service.
168.3(c) The commissioner shall make all decisions on behalf of the agency that are not
168.4required to be made by the agency under section 116.02.

168.5    Sec. 115. Minnesota Statutes 2014, section 116.03, subdivision 2a, is amended to read:
168.6    Subd. 2a. Mission; efficiency. It is part of the agency's mission that within the
168.7agency's resources the commissioner and the members of the agency shall endeavor to:
168.8(1) prevent the waste or unnecessary spending of public money;
168.9(2) use innovative fiscal and human resource practices to manage the state's
168.10resources and operate the agency as efficiently as possible;
168.11(3) coordinate the agency's activities wherever appropriate with the activities of
168.12other governmental agencies;
168.13(4) use technology where appropriate to increase agency productivity, improve
168.14customer service, increase public access to information about government, and increase
168.15public participation in the business of government;
168.16(5) utilize constructive and cooperative labor-management practices to the extent
168.17otherwise required by chapters 43A and 179A;
168.18(6) report to the legislature on the performance of agency operations and the
168.19accomplishment of agency goals in the agency's biennial budget according to section
168.2016A.10, subdivision 1 ; and
168.21(7) recommend to the legislature appropriate changes in law necessary to carry out
168.22the mission and improve the performance of the agency.

168.23    Sec. 116. Minnesota Statutes 2014, section 116.07, subdivision 4d, is amended to read:
168.24    Subd. 4d. Permit fees. (a) The agency may collect permit fees in amounts not greater
168.25than those necessary to cover the reasonable costs of developing, reviewing, and acting
168.26upon applications for agency permits and implementing and enforcing the conditions of
168.27the permits pursuant to agency rules. Permit fees shall not include the costs of litigation.
168.28The fee schedule must reflect reasonable and routine direct and indirect costs associated
168.29with permitting, implementation, and enforcement. The agency may impose an additional
168.30enforcement fee to be collected for a period of up to two years to cover the reasonable costs
168.31of implementing and enforcing the conditions of a permit under the rules of the agency.
168.32Any money collected under this paragraph shall be deposited in the environmental fund.
168.33(b) Notwithstanding paragraph (a), the agency shall collect an annual fee from
168.34the owner or operator of all stationary sources, emission facilities, emissions units, air
169.1contaminant treatment facilities, treatment facilities, potential air contaminant storage
169.2facilities, or storage facilities subject to the requirement to obtain a permit a notification,
169.3permit, or license requirement under subchapter this chapter, subchapters I and V of
169.4the federal Clean Air Act, United States Code, title 42, section 7401 et seq., or section
169.5116.081 or rules adopted thereunder. The annual fee shall be used to pay for all direct
169.6and indirect reasonable costs, including attorney general legal costs, required to develop
169.7and administer the notification, permit, or license program requirements of subchapter
169.8this chapter, subchapters I and V of the federal Clean Air Act, United States Code, title
169.942, section 7401 et seq., and sections of this chapter and the or rules adopted under
169.10this chapter related to air contamination and noise thereunder. Those costs include the
169.11reasonable costs of reviewing and acting upon an application for a permit; implementing
169.12and enforcing statutes, rules, and the terms and conditions of a permit; emissions, ambient,
169.13and deposition monitoring; preparing generally applicable regulations; responding to
169.14federal guidance; modeling, analyses, and demonstrations; preparing inventories and
169.15tracking emissions; and providing information to the public about these activities.
169.16(c) The agency shall set fees that:
169.17(1) will result in the collection, in the aggregate, from the sources listed in paragraph
169.18(b), of an amount not less than $25 per ton of each volatile organic compound; pollutant
169.19regulated under United States Code, title 42, section 7411 or 7412 (section 111 or 112
169.20of the federal Clean Air Act); and each pollutant, except carbon monoxide, for which a
169.21national primary ambient air quality standard has been promulgated;
169.22(2) may result in the collection, in the aggregate, from the sources listed in paragraph
169.23(b), of an amount not less than $25 per ton of each pollutant not listed in clause (1) that is
169.24regulated under this chapter or air quality rules adopted under this chapter; and
169.25(3) shall collect, in the aggregate, from the sources listed in paragraph (b), the
169.26amount needed to match grant funds received by the state under United States Code, title
169.2742, section 7405 (section 105 of the federal Clean Air Act).
169.28The agency must not include in the calculation of the aggregate amount to be collected
169.29under clauses (1) and (2) any amount in excess of 4,000 tons per year of each air pollutant
169.30from a source. The increase in air permit fees to match federal grant funds shall be a
169.31surcharge on existing fees. The commissioner may not collect the surcharge after the grant
169.32funds become unavailable. In addition, the commissioner shall use nonfee funds to the
169.33extent practical to match the grant funds so that the fee surcharge is minimized.
169.34(d) To cover the reasonable costs described in paragraph (b), the agency shall provide
169.35in the rules promulgated under paragraph (c) for an increase in the fee collected in each year
169.36by the percentage, if any, by which the Consumer Price Index for the most recent calendar
170.1year ending before the beginning of the year the fee is collected exceeds the Consumer Price
170.2Index for the calendar year 1989. For purposes of this paragraph the Consumer Price Index
170.3for any calendar year is the average of the Consumer Price Index for all-urban consumers
170.4published by the United States Department of Labor, as of the close of the 12-month period
170.5ending on August 31 of each calendar year. The revision of the Consumer Price Index that
170.6is most consistent with the Consumer Price Index for calendar year 1989 shall be used.
170.7(e) Any money collected under paragraphs (b) to (d) must be deposited in the
170.8environmental fund and must be used solely for the activities listed in paragraph (b).
170.9(f) Permit applicants who wish to construct, reconstruct, or modify a facility may
170.10offer to reimburse the agency for the costs of staff time or consultant services needed to
170.11expedite the permit development process, including the analysis of environmental review
170.12documents. The reimbursement shall be in addition to permit application fees imposed by
170.13law. When the agency determines that it needs additional resources to develop the permit
170.14application in an expedited manner, and that expediting the development is consistent with
170.15permitting program priorities, the agency may accept the reimbursement. Reimbursements
170.16accepted by the agency are appropriated to the agency for the purpose of developing
170.17the permit or analyzing environmental review documents. Reimbursement by a permit
170.18applicant shall precede and not be contingent upon issuance of a permit; shall not affect
170.19the agency's decision on whether to issue or deny a permit, what conditions are included
170.20in a permit, or the application of state and federal statutes and rules governing permit
170.21determinations; and shall not affect final decisions regarding environmental review.
170.22(g) The fees under this subdivision are exempt from section 16A.1285.

170.23    Sec. 117. Minnesota Statutes 2014, section 116.07, subdivision 4j, is amended to read:
170.24    Subd. 4j. Permits; solid waste facilities. (a) The agency may not issue a permit
170.25for new or additional capacity for a mixed municipal solid waste resource recovery or
170.26disposal facility as defined in section 115A.03 unless each county using or projected in
170.27the permit to use the facility has in place a solid waste management plan approved under
170.28section 115A.46 or 473.803 and amended as required by section 115A.96, subdivision 6.
170.29The agency shall issue the permit only if the capacity of the facility is consistent with the
170.30needs for resource recovery or disposal capacity identified in the approved plan or plans.
170.31Consistency must be determined by the Pollution Control Agency. Plans approved before
170.32January 1, 1990, need not be revised if the capacity sought in the permit is consistent
170.33with the approved plan or plans.
170.34(b) The agency shall require as part of the permit application for a waste incineration
170.35facility identification of preliminary plans for ash management and ash leachate treatment
171.1or ash utilization. The permit issued by the agency must include requirements for ash
171.2management and ash leachate treatment.
171.3(c) Within 180 days of receipt of a completed application, the agency shall approve,
171.4disapprove, or delay decision on the application, with reasons for the delay, in writing.
171.5(d) The agency may not issue a permit for a new disposal facility, as defined in
171.6section 115A.03, subdivision 10, or a permit to expand an existing disposal facility unless:
171.7(1) all local units of government in which the facility is to be sited and exercising
171.8their respective land use and zoning authority pursuant to chapter 366, 494, or 462 have
171.9granted approval for and provided any required public notices of the new or expanded
171.10facility prior to the issuance of the permit;
171.11(2) all local units of government in which the facility is to be sited and exercising
171.12their respective land use and zoning authority pursuant to chapter 366, 494, or 462 have
171.13authorized the permit to be issued prior to or concurrent with the required approval by
171.14the local unit of government; or
171.15(3) the new or expanded facility is part of and will be sited on land already identified
171.16in an approved solid waste management plan as described in paragraph (a).
171.17(e) The commissioners of the Pollution Control Agency and natural resources shall
171.18apply Minnesota Rules, parts 7001.3050, subpart 3, item G, and 7035.2525, subpart 2,
171.19item G, to solid waste facilities permitted under and in compliance with those rules and in
171.20compliance with Minnesota Rules, chapter 6132.
171.21EFFECTIVE DATE.This section is effective the day following final enactment.

171.22    Sec. 118. Minnesota Statutes 2014, section 116.07, subdivision 7, is amended to read:
171.23    Subd. 7. Counties; processing of applications for animal lot permits. Any
171.24Minnesota county board may, by resolution, with approval of the Pollution Control
171.25Agency, assume responsibility for processing applications for permits required by the
171.26Pollution Control Agency under this section for livestock feedlots, poultry lots or other
171.27animal lots. The responsibility for permit application processing, if assumed by a county,
171.28may be delegated by the county board to any appropriate county officer or employee.
171.29(a) For the purposes of this subdivision, the term "processing" includes:
171.30(1) the distribution to applicants of forms provided by the Pollution Control Agency;
171.31(2) the receipt and examination of completed application forms, and the certification,
171.32in writing, to the Pollution Control Agency either that the animal lot facility for which a
171.33permit is sought by an applicant will comply with applicable rules and standards, or, if
171.34the facility will not comply, the respects in which a variance would be required for the
171.35issuance of a permit; and
172.1(3) rendering to applicants, upon request, assistance necessary for the proper
172.2completion of an application.
172.3(b) For the purposes of this subdivision, the term "processing" may include, at the
172.4option of the county board, issuing, denying, modifying, imposing conditions upon, or
172.5revoking permits pursuant to the provisions of this section or rules promulgated pursuant
172.6to it, subject to review, suspension, and reversal by the Pollution Control Agency. The
172.7Pollution Control Agency shall, after written notification, have 15 days to review, suspend,
172.8modify, or reverse the issuance of the permit. After this period, the action of the county
172.9board is final, subject to appeal as provided in chapter 14. For permit applications filed
172.10after October 1, 2001, section 15.99 applies to feedlot permits issued by the agency or a
172.11county pursuant to this subdivision.
172.12(c) For the purpose of administration of rules adopted under this subdivision, the
172.13commissioner and the agency may provide exceptions for cases where the owner of a
172.14feedlot has specific written plans to close the feedlot within five years. These exceptions
172.15include waiving requirements for major capital improvements.
172.16(d) For purposes of this subdivision, a discharge caused by an extraordinary natural
172.17event such as a precipitation event of greater magnitude than the 25-year, 24-hour event,
172.18tornado, or flood in excess of the 100-year flood is not a "direct discharge of pollutants."
172.19(e) In adopting and enforcing rules under this subdivision, the commissioner shall
172.20cooperate closely with other governmental agencies.
172.21(f) The Pollution Control Agency shall work with the Minnesota Extension Service,
172.22the Department of Agriculture, the Board of Water and Soil Resources, producer groups,
172.23local units of government, as well as with appropriate federal agencies such as the Natural
172.24Resources Conservation Service and the Farm Service Agency, to notify and educate
172.25producers of rules under this subdivision at the time the rules are being developed and
172.26adopted and at least every two years thereafter.
172.27(g) The Pollution Control Agency shall adopt rules governing the issuance and
172.28denial of permits for livestock feedlots, poultry lots or other animal lots pursuant to this
172.29section. Pastures are exempt from the rules authorized under this paragraph. A feedlot
172.30permit is not required for livestock feedlots with more than ten but less than 50 animal
172.31units; provided they are not in shoreland areas. A livestock feedlot permit does not
172.32become required solely because of a change in the ownership of the buildings, grounds,
172.33or feedlot. These rules apply both to permits issued by counties and to permits issued
172.34by the Pollution Control Agency directly.
172.35(h) The Pollution Control Agency shall exercise supervising authority with respect
172.36to the processing of animal lot permit applications by a county.
173.1(i) Any new rules or amendments to existing rules proposed under the authority
173.2granted in this subdivision, or to implement new fees on animal feedlots, must be
173.3submitted to the members of legislative policy and finance committees with jurisdiction
173.4over agriculture and the environment prior to final adoption. The rules must not become
173.5effective until 90 days after the proposed rules are submitted to the members.
173.6(j) Until new rules are adopted that provide for plans for manure storage structures,
173.7any plans for a liquid manure storage structure must be prepared or approved by a
173.8registered professional engineer or a United States Department of Agriculture, Natural
173.9Resources Conservation Service employee.
173.10(k) A county may adopt by ordinance standards for animal feedlots that are more
173.11stringent than standards in Pollution Control Agency rules.
173.12(l) After January 1, 2001, a county that has not accepted delegation of the feedlot
173.13permit program must hold a public meeting prior to the agency issuing a feedlot permit
173.14for a feedlot facility with 300 or more animal units, unless another public meeting has
173.15been held with regard to the feedlot facility to be permitted.
173.16(m) After the proposed rules published in the State Register, volume 24, number 25,
173.17are finally adopted, the agency may not impose additional conditions as a part of a feedlot
173.18permit, unless specifically required by law or agreed to by the feedlot operator.
173.19(n) For the purposes of feedlot permitting, a discharge from land-applied manure
173.20or a manure stockpile that is managed according to agency rule must not be subject to
173.21a fine for a discharge violation.
173.22(o) For the purposes of feedlot permitting, manure that is land applied, or a manure
173.23stockpile that is managed according to agency rule, must not be considered a discharge
173.24into waters of the state, unless the discharge is to waters of the state, as defined by
173.25section 103G.005, subdivision 17, except type 1 or type 2 wetlands, as defined in section
173.26103G.005, subdivision 17b , and does not meet discharge standards established for feedlots
173.27under agency rule.
173.28(p) Unless the upgrade is needed to correct an immediate public health threat under
173.29section 145A.04, subdivision 8, or the facility is determined to be a concentrated animal
173.30feeding operation under Code of Federal Regulations, title 40, section 122.23, in effect on
173.31April 15, 2003, the agency may not require a feedlot operator:
173.32(1) to spend more than $3,000 to upgrade an existing feedlot with less than 300
173.33animal units unless cost-share money is available to the feedlot operator for 75 percent of
173.34the cost of the upgrade; or
174.1(2) to spend more than $10,000 to upgrade an existing feedlot with between 300
174.2and 500 animal units, unless cost-share money is available to the feedlot operator for 75
174.3percent of the cost of the upgrade or $50,000, whichever is less.
174.4(q) For the purposes of this section, "pastures" means areas, including winter feeding
174.5areas as part of a grazing area, where grass or other growing plants are used for grazing
174.6and where the concentration of animals allows a vegetative cover to be maintained during
174.7the growing season except that vegetative cover is not required:
174.8(1) in the immediate vicinity of supplemental feeding or watering devices;
174.9(2) in associated corrals and chutes where livestock are gathered for the purpose of
174.10sorting, veterinary services, loading and unloading trucks and trailers, and other necessary
174.11activities related to good animal husbandry practices; and
174.12(3) in associated livestock access lanes used to convey livestock to and from areas
174.13of the pasture.
174.14(r) A feedlot operator who stores and applies up to 100,000 gallons per calendar year
174.15of private truck wash wastewater resulting from trucks that transport animals or supplies
174.16to and from the feedlot does not require a permit to land-apply industrial by-products
174.17if the feedlot operator stores and applies the wastewater in accordance with Pollution
174.18Control Agency requirements for land applications of industrial by-product that do not
174.19require a permit.
174.20(s) A feedlot operator who holds a permit from the Pollution Control Agency to
174.21land-apply industrial by-products from a private truck wash is not required to have a
174.22certified land applicator apply the private truck wash wastewater if the wastewater is
174.23applied by the feedlot operator to cropland owned or leased by the feedlot operator or
174.24by a commercial animal waste technician licensed by the commissioner of agriculture
174.25under chapter 18C.
174.26For purposes of this paragraph and paragraph (r), "private truck wash" means a truck
174.27washing facility owned or leased, operated, and used only by a feedlot operator to wash
174.28trucks owned or leased by the feedlot operator and used to transport animals or supplies
174.29to and from the feedlot.

174.30    Sec. 119. Minnesota Statutes 2014, section 116.07, is amended by adding a subdivision
174.31to read:
174.32    Subd. 13. Limitation regarding certain policies, guidelines, and other
174.33nonbinding interpretive statements. The commissioner shall not seek to implement or
174.34enforce against any entity or permittee a policy, guideline, or other nonbinding interpretive
174.35statement that meets the definition of a rule under chapter 14 if the policy, guideline, or
175.1other nonbinding interpretive statement has not been adopted as a rule in accordance
175.2with chapter 14.

175.3    Sec. 120. Minnesota Statutes 2014, section 116C.991, is amended to read:
175.4116C.991 ENVIRONMENTAL REVIEW; SILICA SAND PROJECTS.
175.5(a) Until July 1, 2015 a final rule is adopted pursuant to Laws 2013, chapter 114,
175.6article 4, section 105, paragraph (d), an environmental assessment worksheet must be
175.7prepared for any silica sand project that meets or exceeds the following thresholds,
175.8unless the project meets or exceeds the thresholds for an environmental impact statement
175.9under rules of the Environmental Quality Board and an environmental impact statement
175.10must be prepared:
175.11(1) excavates 20 or more acres of land to a mean depth of ten feet or more during its
175.12existence. The local government is the responsible governmental unit; or
175.13(2) is designed to store or is capable of storing more than 7,500 tons of silica sand or
175.14has an annual throughput of more than 200,000 tons of silica sand and is not required to
175.15receive a permit from the Pollution Control Agency. The Pollution Control Agency is the
175.16responsible governmental unit.
175.17(b) In addition to the contents required under statute and rule, an environmental
175.18assessment worksheet completed according to this section must include:
175.19(1) a hydrogeologic investigation assessing potential groundwater and surface water
175.20effects and geologic conditions that could create an increased risk of potentially significant
175.21effects on groundwater and surface water;
175.22(2) for a project with the potential to require a groundwater appropriation permit
175.23from the commissioner of natural resources, an assessment of the water resources
175.24available for appropriation;
175.25(3) an air quality impact assessment that includes an assessment of the potential
175.26effects from airborne particulates and dust;
175.27(4) a traffic impact analysis, including documentation of existing transportation
175.28systems, analysis of the potential effects of the project on transportation, and mitigation
175.29measures to eliminate or minimize adverse impacts;
175.30(5) an assessment of compatibility of the project with other existing uses; and
175.31(6) mitigation measures that could eliminate or minimize any adverse environmental
175.32effects for the project.
175.33EFFECTIVE DATE.This section is effective the day following final enactment.

176.1    Sec. 121. Minnesota Statutes 2014, section 116D.04, is amended by adding a
176.2subdivision to read:
176.3    Subd. 17. Discretionary review notification. The commissioners of natural
176.4resources and the Pollution Control Agency, when ordering the preparation of a
176.5discretionary environmental impact statement or discretionary environmental assessment
176.6worksheet for a proposed action, must notify the proposer of the action by certified mail at
176.7least 21 calendar days prior to making the order.

176.8    Sec. 122. Minnesota Statutes 2014, section 127A.353, subdivision 1, is amended to
176.9read:
176.10    Subdivision 1. Appointment. The school trust lands director shall be appointed
176.11by the governor. The commissioner of administration shall provide office space for
176.12the director. The commissioner shall provide human resources, payroll, accounting,
176.13procurement, and other similar administrative services to the school trust lands director.
176.14The director's appointment is subject to the advice and consent of the senate.

176.15    Sec. 123. Minnesota Statutes 2014, section 144.12, is amended by adding a subdivision
176.16to read:
176.17    Subd. 4. Camper cabins and bunk houses. Camper cabins and bunk houses are
176.18exempt from floor space, air space, or bed spacing requirements applicable to lodging
176.19establishments adopted by the commissioner. For the purposes of this section:
176.20(1) "bunk house" means a building, structure, or enclosure intended to sleep more
176.21than one person for up to three nights that does not include a kitchen or bathroom; and
176.22(2) "camper cabin" means a permanent rustic enclosure with walls and a floor
176.23that does not include a kitchen or bath; is located in a state park administered by the
176.24commissioner of natural resources, at a resort as defined under section 157.15, subdivision
176.2511, or at a recreational camping area as defined under section 327.14, subdivision 8; and is
176.26intended to be a place where sleeping accommodations are furnished to the public.

176.27    Sec. 124. Minnesota Statutes 2014, section 171.07, is amended by adding a subdivision
176.28to read:
176.29    Subd. 18. All-terrain vehicle safety certificate. (a) The department shall maintain
176.30in its records information transmitted electronically from the commissioner of natural
176.31resources identifying each person to whom the commissioner has issued an all-terrain
176.32vehicle safety certificate. The records transmitted from the Department of Natural
176.33Resources must contain the full name and date of birth as required for the driver's license
177.1or identification card. Records that are not matched to a driver's license or identification
177.2card record may be deleted after seven years.
177.3(b) After receiving information under paragraph (a) that a person has received an
177.4all-terrain vehicle safety certificate, the department shall include, on all drivers' licenses
177.5or Minnesota identification cards subsequently issued to the person, a graphic or written
177.6indication that the person has received the certificate.
177.7(c) If a person who has received an all-terrain vehicle safety certificate applies
177.8for a driver's license or Minnesota identification card before that information has been
177.9transmitted to the department, the department may accept a copy of the certificate as proof
177.10of its issuance and shall then follow the procedures in paragraph (b).
177.11EFFECTIVE DATE.This section is effective January 1, 2016, or the date the new
177.12driver and vehicle services information technology system is implemented, whichever
177.13comes later.

177.14    Sec. 125. Minnesota Statutes 2014, section 282.011, subdivision 3, is amended to read:
177.15    Subd. 3. Title examination. The commissioner of revenue shall, if requested by the
177.16purchaser or the county attorney of the county where all or a portion of the land is situated,
177.17deliver the deed to the county attorney for use under Minnesota Statutes 2014, section
177.1888.48, subdivision 5 , but such delivery shall not be considered delivery to the purchaser.
177.19The county attorney shall be instructed when taking the transferral of the deed that said
177.20deed shall not be delivered to the purchaser unless the land involved is accepted as and
177.21placed into an auxiliary forest.

177.22    Sec. 126. Minnesota Statutes 2014, section 446A.073, subdivision 1, is amended to
177.23read:
177.24    Subdivision 1. Program established. When money is appropriated for grants
177.25under this program, the authority shall award grants up to a maximum of $3,000,000 to
177.26governmental units to cover up to one-half the cost of wastewater treatment or storm water
177.27infrastructure projects made necessary by:
177.28(1) a wasteload reduction prescribed under a total maximum daily load plan required
177.29by section 303(d) of the federal Clean Water Act, United States Code, title 33, section
177.301313(d);
177.31(2) a phosphorus concentration or mass limit which requires discharging one
177.32milligram per liter or less at permitted design flow which is incorporated into a permit
177.33issued by the Pollution Control Agency;
178.1(3) any other water quality-based effluent limit established under section 115.03,
178.2subdivision 1, paragraph (e), clause (8), and incorporated into a permit issued by the
178.3Pollution Control Agency that exceeds secondary treatment limits; or
178.4(4) a total nitrogen limit of ten milligrams per liter or less for a land-based treatment
178.5system.

178.6    Sec. 127. Minnesota Statutes 2014, section 446A.073, subdivision 3, is amended to
178.7read:
178.8    Subd. 3. Project priorities. When money is appropriated for grants under this
178.9program, the authority shall accept applications during the month of July and reserve
178.10money for projects expected to proceed with construction by the end of the fiscal year in
178.11the order listed on the Pollution Control Agency's project priority list and in an amount
178.12based on the cost estimate submitted to the authority in the grant application or the as-bid
178.13costs, whichever is less. Notwithstanding Minnesota Rules, chapter 7077, the Pollution
178.14Control Agency may rank a drinking water infrastructure project on the agency's project
178.15priority list if the project is necessary to meet an applicable requirement in subdivision 1.

178.16    Sec. 128. Minnesota Statutes 2014, section 446A.073, subdivision 4, is amended to
178.17read:
178.18    Subd. 4. Grant approval. The authority must make a grant for an eligible project
178.19only after:
178.20(1) the applicant has submitted the as-bid cost for the wastewater treatment or storm
178.21water infrastructure project;
178.22(2) the Pollution Control Agency has approved the as-bid costs and certified the
178.23grant eligible portion of the project; and
178.24(3) the authority has determined that the additional financing necessary to complete
178.25the project has been committed from other sources.

178.26    Sec. 129. Minnesota Statutes 2014, section 473.1565, is amended to read:
178.27473.1565 METROPOLITAN AREA WATER SUPPLY PLANNING
178.28ACTIVITIES; ADVISORY COMMITTEE COMMITTEES.
178.29    Subdivision 1. Planning activities. (a) The Metropolitan Council must carry out
178.30planning activities addressing the water supply needs of the metropolitan area as defined
178.31in section 473.121, subdivision 2. The planning activities must include, at a minimum:
178.32    (1) development and maintenance of a base of technical information needed for
178.33sound water supply decisions including surface and groundwater availability analyses,
179.1water demand projections, water withdrawal and use impact analyses, modeling, and
179.2similar studies;
179.3    (2) development and periodic update of a metropolitan area master water supply
179.4plan, prepared in cooperation with and subject to the approval of the commissioner of
179.5natural resources policy advisory committee established in this section, that:
179.6    (i) provides guidance for local water supply systems and future regional investments;
179.7    (ii) emphasizes conservation, interjurisdictional cooperation, and long-term
179.8sustainability; and
179.9    (iii) addresses the reliability, security, and cost-effectiveness of the metropolitan area
179.10water supply system and its local and subregional components;
179.11    (3) recommendations for clarifying the appropriate roles and responsibilities of
179.12local, regional, and state government in metropolitan area water supply;
179.13    (4) recommendations for streamlining and consolidating metropolitan area water
179.14supply decision-making and approval processes; and
179.15    (5) recommendations for the ongoing and long-term funding of metropolitan area
179.16water supply planning activities and capital investments.
179.17    (b) The council must carry out the planning activities in this subdivision in
179.18consultation with the Metropolitan Area Water Supply Policy and Technical Advisory
179.19Committee Committees established in subdivision 2 this section.
179.20    Subd. 2. Policy advisory committee. (a) A Metropolitan Area Water Supply
179.21Policy Advisory Committee is established to assist the council in its planning activities in
179.22subdivision 1. The policy advisory committee has the following membership:
179.23    (1) the commissioner of agriculture or the commissioner's designee;
179.24    (2) the commissioner of health or the commissioner's designee;
179.25    (3) the commissioner of natural resources or the commissioner's designee;
179.26    (4) the commissioner of the Pollution Control Agency or the commissioner's
179.27designee;
179.28    (5) two officials of counties that are located in the metropolitan area, appointed by
179.29the governor, in consultation with the Association of Minnesota Counties;
179.30    (6) five officials of noncounty local governmental units that are located in the
179.31metropolitan area, appointed by the governor, in consultation with the Association of
179.32Metropolitan Municipalities;
179.33    (7) the chair of the Metropolitan Council or the chair's designee, who is chair of the
179.34advisory committee; and
180.1(8) one official each from the counties of Chisago, Isanti, Sherburne, and Wright,
180.2appointed by the governor, in consultation with the Association of Minnesota Counties
180.3and the League of Minnesota Cities; and
180.4(9) a representative of the Saint Paul Regional Water Services, appointed by and
180.5serving at the pleasure of the Saint Paul Regional Water Services, and a representative
180.6of the Minneapolis Water Department, appointed by and serving at the pleasure of the
180.7mayor of the city of Minneapolis.
180.8    A local government unit in each of the seven counties in the metropolitan area
180.9and Chisago, Isanti, Sherburne, and Wright Counties must be represented in the 11
180.10appointments made under clauses (5), (6), and (8).
180.11    (b) Members of the advisory committee appointed by the governor serve at the
180.12pleasure of the governor. Members of the advisory committee serve without compensation
180.13but may be reimbursed for their reasonable expenses as determined by the Metropolitan
180.14Council. The advisory committee expires December 31, 2016.
180.15    (c) The council must consider the work and recommendations of the policy advisory
180.16committee when the council is preparing its regional development framework.
180.17    Subd. 2a. Technical advisory committee. A Metropolitan Area Water Supply
180.18Technical Advisory Committee is established to inform the policy advisory committee's
180.19work by providing scientific and engineering expertise necessary to provide the region
180.20an adequate and sustainable water supply. The technical advisory committee consists of
180.2115 members appointed by the policy advisory committee, with the majority of members
180.22representing single-city and multicity public water supply systems in the metropolitan
180.23area and including experts in:
180.24(1) water resources analysis and modeling;
180.25(2) hydrology; and
180.26(3) the engineering, planning, design, and construction of water systems or water
180.27systems finance.
180.28Members of the technical advisory committee serve at the pleasure of the policy advisory
180.29committee, without compensation, but may be reimbursed for their reasonable expenses as
180.30determined by the council.
180.31    Subd. 3. Reports to legislature. (a) The council must submit reports to the
180.32legislature regarding its findings, recommendations, and continuing planning activities
180.33under subdivision 1. These reports shall be included in the "Minnesota Water Plan"
180.34required in section 103B.151, and five-year interim reports may be provided as necessary.
180.35(b) By February 15, 2017, and at least every five years thereafter, the policy advisory
180.36committee shall report to the council, the Legislative Water Commission, and the chairs
181.1and ranking minority members of the house of representatives and senate committees and
181.2divisions with jurisdiction over environment and natural resources with the information
181.3required under this section. The policy advisory committee's report and recommendations
181.4must include information provided by the technical advisory committee.
181.5EFFECTIVE DATE; APPLICATION.This section is effective the day following
181.6final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
181.7Scott, and Washington.

181.8    Sec. 130. SURPLUS STATE LAND SALES.
181.9The school trust lands director shall identify, in consultation with the commissioner
181.10of natural resources, at least $5,000,000 in state-owned lands suitable for sale. The lands
181.11identified shall not be within a unit of the outdoor recreation system under Minnesota
181.12Statutes, section 86A.05, an administrative site, or trust land. The commissioner shall
181.13sell at least $3,000,000 worth of lands identified under this section by June 30, 2017.
181.14Notwithstanding Minnesota Statutes, section 94.16, subdivision 3, or any other law to the
181.15contrary, the amount of the proceeds from the sale of lands that exceeds the actual expenses
181.16of selling the lands must be deposited in the school trust lands account and used to
181.17extinguish the school trust interest as provided under Minnesota Statutes, section 92.83, on
181.18school trust lands that have public water access sites or old growth forests located on them.

181.19    Sec. 131. REQUIRED RULEMAKING; SUBSURFACE SEWAGE TREATMENT
181.20SYSTEMS.
181.21The commissioner of the Pollution Control Agency shall adopt rules, using the
181.22expedited rulemaking process in Minnesota Statutes, section 14.389, that set forth
181.23procedures to conform with the changes to Minnesota Statutes, chapter 115, under this act
181.24and to streamline the subsurface sewage treatment system (SSTS) license application and
181.25renewal process in a manner that:
181.26(1) surety bond and insurance requirements of licensed SSTS businesses meet the
181.27requirements of Minnesota Statutes, chapter 115 and section 326B.46, subdivision 2; and
181.28(2) properly trained SSTS installers may complete work on a building sewer with
181.29respect to the Plumbing Code and plumbing program and SSTS designers and inspectors
181.30may complete work on a building sewer connected to an SSTS with respect to the
181.31Plumbing Code and plumbing program.

181.32    Sec. 132. WETLAND CONSERVATION ACT REPORT.
182.1By March 15, 2016, the Board of Water and Soil Resources, in cooperation with the
182.2Department of Natural Resources, shall report to the committees with jurisdiction over
182.3environment and natural resources on the proposals to implement high priority areas for
182.4wetland replacement and in-lieu fees for replacement and modify wetland replacement
182.5siting and actions eligible for credit. In developing the report, the board and department
182.6shall consult with stakeholders and agencies.

182.7    Sec. 133. ALL-TERRAIN VEHICLE REGISTRATION TRANSITION.
182.8(a) A person must have an unexpired class 1 or class 2 all-terrain vehicle or off-road
182.9vehicle registration and may continue to display the unexpired class 1 or class 2 all-terrain
182.10vehicle or off-road vehicle registration until the electronic licensing system has been
182.11upgraded to conform with the amendments to Minnesota Statutes, section 84.92, under
182.12this act.
182.13(b) When the electronic licensing system has been upgraded, a person who possesses
182.14an unexpired class 1 or class 2 all-terrain vehicle or off-road vehicle registration may
182.15continue to display that unexpired class 1 or class 2 all-terrain vehicle or off-road vehicle
182.16registration until the class 1 or class 2 all-terrain vehicle or off-road vehicle registration is
182.17renewed, transferred, or replacement registration is applied for.

182.18    Sec. 134. COST ANALYSIS OF WATER QUALITY STANDARDS.
182.19(a) The commissioner of management and budget, after consultation with the
182.20commissioner of the Pollution Control Agency, shall issue a request for proposal not to
182.21exceed $500,000 to contract with a nonstate entity for an engineering cost analysis of
182.22current and recently adopted, proposed, or anticipated changes to water quality standards
182.23and rules, including:
182.24(1) recently adopted or proposed changes to total suspended solid, nutrient, chloride,
182.25nitrate, and sulfate standards;
182.26(2) proposed nondegradation rulemaking provisions; and
182.27(3) proposed changes to water quality standards to incorporate a tiered aquatic
182.28life use framework.
182.29(b) The contractor may employ engineering subcontractors serving local
182.30governments to complete the analysis. The analysis must include a cost analysis for a
182.31representative sample of at least 15 communities and provide an estimate of the cost impact
182.32to average residential and commercial connections in those communities. The sample
182.33must include a diverse set of communities based on geography, watersheds, community
183.1size, wastewater facility types and operators, storm water system types, and other factors
183.2to ensure the analysis is representative of the state as a whole. The analysis must include:
183.3(1) an estimate of the overall capital and operating costs to maintain and upgrade
183.4wastewater and storm water systems for existing water quality standards;
183.5(2) an estimate of the overall capital and operating costs likely to be incurred
183.6to upgrade wastewater and storm water systems for recently adopted, proposed, or
183.7anticipated changes to water quality standards; and
183.8(3) an estimate of the incremental effect to overall water quality in the receiving
183.9waters as a direct result of the recently adopted, proposed, or anticipated changes to
183.10water quality standards.
183.11(c) The commissioner shall submit the analysis to the chairs and ranking minority
183.12members of the committees and divisions of the house of representatives and senate with
183.13jurisdiction over water quality standards no later than January 1, 2017.
183.14(d) Any appropriation for the contract under paragraph (a) does not cancel and is
183.15available until expended. Any money in excess of the $500,000 needed must be paid
183.16from the agency's base budget.
183.17EFFECTIVE DATE.This section is effective the day following final enactment.

183.18    Sec. 135. RED RIVER MINIMUM WATER QUALITY STANDARDS.
183.19As part of achieving phosphorous reductions needed to protect the Red River and
183.20Lake Winnipeg, the Minnesota Pollution Control Agency shall work with the North Dakota
183.21Department of Health and the United States Environmental Protection Agency Regions 5
183.22and 8 and with wastewater treatment plants in the Red River Basin that discharge more
183.23than 1,800 pounds of phosphorus per year to place wastewater treatment plants on a
183.24schedule to achieve a one milligram per liter total phosphorus effluent limit no sooner than
183.252025, unless a sooner date is mutually agreed to for a treatment plant by the agencies.

183.26    Sec. 136. WILD RICE WATER QUALITY STANDARDS.
183.27(a) Until the commissioner of the Pollution Control Agency amends rules refining
183.28the wild rice water quality standard in Minnesota Rules, part 7050.0224, subpart 2, to
183.29consider all independent research and publicly funded research and to include criteria for
183.30identifying waters and a list of waters subject to the standard, implementation of the wild
183.31rice water quality standard in Minnesota Rules, part 7050.0224, subpart 2, shall be limited
183.32to the following, unless the permittee requests additional conditions:
184.1(1) when issuing, modifying, or renewing national pollutant discharge elimination
184.2system (NPDES) or state disposal system (SDS) permits, the agency shall endeavor to
184.3protect wild rice, and in doing so shall be limited by the following conditions:
184.4(i) the agency shall not require permittees to expend money for design or
184.5implementation of sulfate treatment technologies or other forms of sulfate mitigation; and
184.6(ii) the agency may require sulfate minimization plans in permits; and
184.7(2) the agency shall not list waters containing natural beds of wild rice as impaired
184.8for sulfate under section 303(d) of the federal Clean Water Act, United States Code, title
184.933, section 1313, until the rulemaking described in this paragraph takes effect.
184.10(b) Upon the rule described in paragraph (a) taking effect, the agency may reopen
184.11permits issued or reissued after the effective date of this section as needed to include
184.12numeric permit limits based on the wild rice water quality standard.
184.13(c) The commissioner shall complete the rulemaking described in paragraph (a) by
184.14January 15, 2018.

184.15    Sec. 137. FEDERAL CLEAN WATER ACT SECTION 404 PERMIT PROGRAM
184.16FEASIBILITY STUDY.
184.17(a) The Board of Water and Soil Resources and the commissioner of natural
184.18resources shall study the feasibility of the state assuming administration of the section
184.19404 permit program of the federal Clean Water Act. The United States Army Corps of
184.20Engineers, St. Paul District; and the United States Environmental Protection Agency shall
184.21be consulted with during the development of the study. The study shall identify:
184.22(1) the federal requirements for state assumption of the 404 program;
184.23(2) the potential extent of assumption, including those waters that would remain under
184.24the jurisdiction of the United States Army Corps of Engineers due to the prohibition of 404
184.25assumption in certain waters as defined in section 404(g)(1) of the federal Clean Water Act;
184.26(3) differences in waters regulated under Minnesota laws compared to waters of the
184.27United States, including complications and potential solutions to address the current
184.28uncertainties relating to determining waters of the United States;
184.29(4) measures to ensure the protection of aquatic resources consistent with the Clean
184.30Water Act, Wetland Conservation Act, and the public waters program administered by the
184.31Department of Natural Resources;
184.32(5) changes to existing state law, including changes to current implementation
184.33structure and processes, that would need to occur to allow for state assumption of the
184.34404 program;
185.1(6) new agency responsibilities for implementing federal requirements and
185.2procedures that would become the obligation of the state under assumption, including the
185.3staff and resources needed for implementation;
185.4(7) the estimated costs and savings that would accrue to affected units of government;
185.5(8) the effect on application review and approval processes and time frames;
185.6(9) alternatives to assumption that would also achieve the goals of regulatory
185.7simplification, efficiency, and reduced permitting times;
185.8(10) options for financing any additional costs of implementation; and
185.9(11) other information as determined by the board and commissioner.
185.10(b) The board and commissioner shall involve stakeholders in the development of
185.11the plan of study consistent with Minnesota Statutes, section 103B.101, subdivision 16.
185.12(c) By January 15, 2017, the board and commissioner must report the study to the
185.13legislative policy and finance committees and divisions with jurisdiction over environment
185.14and natural resources.

185.15    Sec. 138. METROPOLITAN PARKS; INTEREST EARNINGS.
185.16Notwithstanding Laws 1985, First Special Session chapter 15, section 5, subdivision
185.172, paragraph (b), and Laws 1987, chapter 384, article 3, section 45, the Metropolitan
185.18Council shall use the interest earnings in Laws 1985, First Special Session chapter 15,
185.19section 5, subdivision 2, for the use and betterment of all regional recreational open space
185.20lands under the jurisdiction of the Metropolitan Council.
185.21EFFECTIVE DATE.This section is effective January 1, 2018.

185.22    Sec. 139. REFUNDS; YOUTH BEAR LICENSES.
185.23The commissioner of natural resources may issue refunds for youth bear licenses
185.24that were purchased between August 1, 2013, and June 30, 2014, to individuals who were
185.2510, 11, or 12 years old at the time of purchase until June 30, 2016.

185.26    Sec. 140. WATER RETENTION PROJECTS.
185.27By August 1, 2015, the commissioner of natural resources, in cooperation with
185.28the commissioners of agriculture and the Pollution Control Agency, the Board of Water
185.29and Soil Resources, and other interested parties, shall develop proposals for significant
185.30large-scale projects that provide flood water retention, water quality improvements,
185.31nutrient and sediment reduction, and wildlife habitat for submission to the Lessard-Sams
185.32Outdoor Heritage Council, Clean Water Council, and the Legislative-Citizen Commission
185.33on Minnesota Resources for funding in fiscal year 2017. Any deadlines established by the
186.1Lessard-Sams Outdoor Heritage Council, Clean Water Council, or the Legislative-Citizen
186.2Commission on Minnesota Resources are waived for purposes of the submissions.

186.3    Sec. 141. WILD TURKEY CRITICAL HABITAT PLATE.
186.4The commissioner of natural resources and the commissioner of public safety must
186.5select a design depicting wild turkey when selecting designs for the next selection of critical
186.6habitat plates as provided under Minnesota Statutes, section 168.1296, subdivision 2.

186.7    Sec. 142. BASE BUDGET REPORT.
186.8The commissioners of agriculture, natural resources, and the Pollution Control
186.9Agency shall each submit a report that contains the details of their base budgets,
186.10including prior appropriation riders, to the chairs and ranking minority members of the
186.11house of representatives and senate committees and divisions with jurisdiction over the
186.12environment and natural resources by October 15, 2016.

186.13    Sec. 143. NEGATIVE SURFACE WATER IMPACTS; RECOMMENDATIONS.
186.14By December 15, 2015, the commissioner of natural resources shall consult with
186.15interested stakeholders and submit a report to the Legislative Water Commission and
186.16the chairs and ranking minority members of the house of representatives and senate
186.17committees and divisions with jurisdiction over the environment and natural resources
186.18policy and finance on recommendations for statutory or rule definitions and thresholds for
186.19negative impacts to surface waters as described in Minnesota Statutes, sections 103G.285
186.20and 103G.287, subdivision 2. Stakeholders must include but are not limited to agricultural
186.21interests; environmental interests; businesses; community water suppliers; state, federal,
186.22and local agencies; universities; and other interested stakeholders.

186.23    Sec. 144. RULEMAKING; SSTS; EXISTING CAMPGROUNDS AND
186.24RESORTS.
186.25(a) The commissioner of the Pollution Control Agency shall adopt rules, using the
186.26expedited rulemaking process in Minnesota Statutes, section 14.389, to eliminate the need
186.27for existing campgrounds and resorts that are open for 180 days or less per year to estimate
186.28wastewater flow rates to subsurface sewage treatment systems as required by Minnesota
186.29Rules, part 7081.0040, subpart 1, item B. The rules shall establish flow monitoring and
186.30recording for subsurface sewage treatment systems at existing campgrounds and resorts
186.31that are open for 180 days or less per year as provided in paragraphs (b) to (f).
187.1(b) The rules shall provide that existing campgrounds and resorts are allowed to use
187.2the following flow measurement methods:
187.3(1) sewage lift station pump with runtime meter and counter;
187.4(2) sewage flow meter;
187.5(3) flow meters on wells; and
187.6(4) water softener system with flow measurement when the measurement includes
187.7all flow to the subsurface soil treatment system, including backwash.
187.8(c) The measured flow rate must include the total of all treatment systems that are
187.9located on the resort or campground. If fewer than 25 percent of the systems are not
187.10measured, an average of the metered systems can be used to determine the flow from
187.11the unmetered systems.
187.12(d) A daily flow rate and daily campground occupancy rate must be recorded for a
187.13minimum of two weeks, centered on and including July 4. Weekly monitoring must also
187.14be done for an additional continuous two weeks prior and two weeks following July 4.
187.15(e) If no flow data exists, the existing campground or resort owner or operator shall
187.16implement an acceptable flow measurement plan and start measuring and recording flow
187.17data within 120 days of notification.
187.18(f) Flow measurement devices must be calibrated before start-up of monitoring and
187.19another calibration during the test to verify results.
187.20EFFECTIVE DATE.This section is effective the day following final enactment.

187.21    Sec. 145. RULEMAKING; SEPTIC SYSTEM PROFESSIONALS;
187.22ELIGIBILITY.
187.23The commissioner of the Pollution Control Agency shall adopt rules, using the
187.24expedited rulemaking process in Minnesota Statutes, section 14.389, to create a procedure
187.25for previously or currently certification-eligible septic system professionals to apply to
187.26re-establish or maintain certification eligibility. The conditional eligibility shall begin upon
187.27acceptance of an application by the Pollution Control Agency and end upon completion of
187.28recertification procedures, including completion of necessary continuing education and
187.29examinations. The length of the conditional eligibility shall be limited to one year.
187.30EFFECTIVE DATE.This section is effective the day following final enactment.

187.31    Sec. 146. INITIAL IMPLEMENTATION; WAIVERS.
187.32A soil and water conservation district must grant a conditional compliance waiver
187.33under Minnesota Statutes, section 103F.48, to landowners who have applied for and
188.1maintained eligibility for financial assistance within one year of the dates listed in
188.2Minnesota Statutes, section 103F.48, subdivision 3, paragraph (e), according to Minnesota
188.3Statutes, section 103F.48. A conditional compliance waiver also must be granted to
188.4landowners who are subject to a drainage proceeding commenced under Minnesota
188.5Statutes, sections 103E.011, subdivision 5; 103E.021, subdivision 6; and 103E.715. The
188.6conditional compliance waiver is valid until financial assistance is available for buffer
188.7installation, but not later than November 1, 2018.

188.8    Sec. 147. TRANSFERS.
188.9(a) By June 30, 2015, the commissioner of management and budget shall transfer
188.10to the natural resources conservation easement stewardship account, established in
188.11Minnesota Statutes, section 84.69, the remaining balance in the forests for the future
188.12conservation easement account under Minnesota Statutes, section 84.68.
188.13(b) By June 30, 2015, the commissioner of management and budget shall transfer
188.14to the natural resources conservation easement stewardship account, established in
188.15Minnesota Statutes, section 84.69, the following amounts:
188.16(1) $114,840 from Laws 2011, First Special Session chapter 6, article 1, section
188.172, subdivision 3, paragraph (a);
188.18(2) $25,000 from Laws 2012, chapter 264, article 1, section 2, subdivision 5,
188.19paragraph (a); and
188.20(3) $14,000 from Laws 2013, chapter 137, article 1, section 2, subdivision 2,
188.21paragraph (c).
188.22(c) The commissioner of management and budget shall transfer additional
188.23amounts from Laws 2013, chapter 137, article 1, section 2, subdivision 2, paragraph
188.24(c), to the natural resources conservation easement stewardship account, established in
188.25Minnesota Statutes, section 84.69, upon closing on conservation easements funded by the
188.26appropriation, provided that total transfers to the account shall not exceed $42,000.
188.27(d) The commissioner of management and budget shall transfer amounts from
188.28Laws 2014, chapter 256, article 1, section 2, subdivision 2, paragraph (e), to the natural
188.29resources conservation easement stewardship account, established in Minnesota Statutes,
188.30section 84.69, upon closing on conservation easements funded by the appropriation,
188.31provided that total transfers to the account shall not exceed $112,000.
188.32(e) By June 30, 2015, the commissioner of management and budget shall transfer to
188.33the water and soil conservation easement stewardship account, established in Minnesota
188.34Statutes, section 103B.103, the following amounts:
189.1(1) $191,667 from Laws 2011, First Special Session chapter 6, article 1, section
189.22, subdivision 2, paragraph (c);
189.3(2) $57,750 from Laws 2011, First Special Session chapter 6, article 1, section
189.42, subdivision 4, paragraph (a);
189.5(3) $15,750 from Laws 2011, First Special Session chapter 6, article 1, section
189.62, subdivision 4, paragraph (c);
189.7(4) $48,000 from Laws 2012, chapter 264, article 1, section 2, subdivision 2,
189.8paragraph (a);
189.9(5) $1,821 from Laws 2012, chapter 264, article 1, section 2, subdivision 3,
189.10paragraph (a);
189.11(6) $26,400 from Laws 2013, chapter 137, article 1, section 2, subdivision 3,
189.12paragraph (b);
189.13(7) $26,400 from Laws 2013, chapter 137, article 1, section 2, subdivision 2,
189.14paragraph (e);
189.15(8) $4,800 from Laws 2013, chapter 137, article 1, section 2, subdivision 4,
189.16paragraph (d); and
189.17(9) $4,500 from Laws 2014, chapter 256, article 1, section 2, subdivision 2,
189.18paragraph (f).
189.19(f) The commissioner of management and budget shall continue to transfer money,
189.20appropriated to the Board of Water and Soil Resources on or before June 30, 2015,
189.21for conservation easement monitoring and enforcement funds to the water and soil
189.22conservation easement stewardship account, established in Minnesota Statutes, section
189.23103B.103, upon closing on conservation easements, provided that total transfers to the
189.24account shall not exceed the "up to" amount specified in each appropriation.
189.25EFFECTIVE DATE.This section is effective the day following final enactment.

189.26    Sec. 148. REVISOR'S INSTRUCTIONS.
189.27(a) The revisor of statutes shall delete the range reference "88.47 to 88.53" wherever
189.28it appears in Minnesota Statutes and Minnesota Rules and insert "88.49 to 88.53."
189.29(b) The revisor of statutes shall renumber the subdivisions of Minnesota Statutes,
189.30section 103G.005, to retain alphabetical order and shall correct cross-references to the
189.31renumbered subdivisions.

189.32    Sec. 149. REVISOR'S INSTRUCTION.
189.33The revisor of statutes shall prepare draft legislation to amend statutes to conform
189.34with structural changes to the Minnesota Pollution Control Agency under sections 110
190.1to 113 and 147. The revisor shall submit the proposed legislation to the chairs of the
190.2house of representatives and senate committees with jurisdiction over environment policy
190.3by January 1, 2016.

190.4    Sec. 150. REPEALER.
190.5(a) Minnesota Statutes 2014, sections 84.68; 88.47; 88.48; 88.49, subdivisions 1, 2,
190.6and 10; 88.491, subdivision 1; 88.51, subdivision 2; and 282.013, are repealed.
190.7(b) Minnesota Statutes 2014, section 86B.13, subdivisions 2 and 4, are repealed.
190.8(c) Minnesota Statutes 2014, section 116.02, subdivisions 2, 3, 4, 6, 7, 8, 9, and
190.910, are repealed.
190.10(d) Minnesota Statutes 2014, sections 103F.421, subdivision 5; 103F.451; and
190.11114D.50, subdivision 4a, are repealed.
190.12EFFECTIVE DATE.Paragraph (b) of this section is effective the day following
190.13final enactment.

190.14ARTICLE 5
190.15GAME AND FISH

190.16    Section 1. Minnesota Statutes 2014, section 84.027, subdivision 13a, is amended to read:
190.17    Subd. 13a. Game and fish expedited permanent rules. (a) In addition to the
190.18authority granted in subdivision 13, the commissioner of natural resources may adopt rules
190.19under section 14.389 that are authorized under:
190.20    (1) chapters 97A, 97B, and 97C to describe zone or permit area boundaries, to
190.21designate fish spawning beds or fish preserves, to select hunters or anglers for areas,
190.22to provide for registration of game or fish, to prevent or control wildlife disease, or to
190.23correct errors or omissions in rules that do not have a substantive effect on the intent or
190.24application of the original rule; or
190.25    (2) section 84D.12 to list prohibited invasive species, regulated invasive species, and
190.26unregulated nonnative species.
190.27(b) The commissioner of natural resources may adopt rules under section 14.389
190.28that are authorized under chapters 97A, 97B, and 97C, for purposes in addition to those
190.29listed in paragraph (a), clause (1), subject to the notice and public hearing provisions
190.30of section 14.389, subdivision 5.
190.31EFFECTIVE DATE.This section is effective the day following final enactment.

190.32    Sec. 2. Minnesota Statutes 2014, section 84.0274, subdivision 3, is amended to read:
191.1    Subd. 3. Condemnation limits. No lands shall be acquired by the commissioner
191.2of natural resources by means of condemnation unless the owner requests that the
191.3owner's lands be condemned or the condemnation is specifically authorized by law.
191.4Notwithstanding subdivision 5, paragraph (g), and sections 117.52 and 117.521, the owner
191.5shall not be paid relocation costs when the owner requests that their lands be condemned.

191.6    Sec. 3. Minnesota Statutes 2014, section 84.0274, subdivision 5, is amended to read:
191.7    Subd. 5. Owner's rights. When the state proposes to purchase in fee or any lesser
191.8interest in land which will be administered by the commissioner of natural resources, the
191.9landowner shall have the following rights:
191.10    (a) the right to be informed of the specific intended use of the property and of any
191.11change in the intended use of the property which occurs during the acquisition process.
191.12The owner shall also be informed that the documents regarding the purchase will be public
191.13records if the land is purchased by the state;
191.14    (b) the right to be paid a fair price for the property. The price shall include the
191.15fair market value of the land plus:
191.16    (1) all necessary incidental costs such as abstracting and recording fees related
191.17to the sale. The costs of clearing title defects, paying taxes, and attorney's fees are not
191.18reimbursable; and
191.19    (2) any penalties incurred by the owner where the property is security for a loan or
191.20advance of credit that contains a provision requiring or permitting the imposition of a
191.21penalty if the loan or advance of credit is prepaid;
191.22    (c) the right to payment, at the owner's election, in a lump sum or in up to four
191.23annual installments;
191.24    (d) the right to have the property fairly appraised by the state. The state's appraiser
191.25shall physically inspect the property and the owner shall be allowed to accompany the
191.26appraiser when the appraisal is made. The state's appraiser shall certify in the appraisal
191.27report to having physically inspected the property and having given the landowner an
191.28opportunity to accompany the appraiser on inspections. Notwithstanding section 13.44,
191.29subdivision 3
, before an offer is made, the landowner shall be informed of the value
191.30determined pursuant to section 84.0272;
191.31    (e) the right to retain a qualified independent appraiser to conduct an appraisal at any
191.32time prior to certification of the state's appraisal of the property and to be reimbursed for
191.33appraisal fees as provided in section 117.232, subdivision 1, if the land is sold to the state
191.34and to have that appraisal considered along with the state's in certifying the selling price
191.35and the right to be reimbursed for appraisal fees up to $1,500 if the land is sold to the state;
192.1    (f) the right to have the state acquire the property by means of condemnation upon
192.2the owner's request with the agreement of the commissioner;
192.3    (g) when the property is being acquired by condemnation or the condemnation is
192.4specifically authorized by law, the right to receive or waive relocation assistance, services,
192.5payments and benefits as provided in sections 117.52 and 117.521 and to contest the state's
192.6offer for relocation and moving expenses;
192.7    (h) the right to accept the state's offer for the property and contest the state's offer for
192.8relocation and moving expenses;
192.9    (i) the right to continue occupancy of the property until full payment is received,
192.10provided that when the owner elects to receive payment in annual installments pursuant to
192.11clause (c), the owner may retain occupancy until the first payment is made; and
192.12    (j) the right to seek the advice of counsel regarding any aspect of the land transaction.

192.13    Sec. 4. Minnesota Statutes 2014, section 84D.03, subdivision 3, is amended to read:
192.14    Subd. 3. Bait harvest from infested waters. (a) Taking wild animals from infested
192.15waters for bait or aquatic farm purposes is prohibited, except as provided in paragraph (b),
192.16(c), or (d), and section 97C.341.
192.17    (b) In waters that are listed as infested waters, except those listed because they
192.18contain as infested with prohibited invasive species of fish or certifiable diseases of fish, as
192.19defined under section 17.4982, subdivision 6, taking wild animals may be permitted for:
192.20    (1) commercial taking of wild animals for bait and aquatic farm purposes according
192.21to as provided in a permit issued under section 84D.11, subject to rules adopted by the
192.22commissioner; and
192.23    (2) bait purposes for noncommercial personal use in waters that contain Eurasian
192.24water milfoil, when the infested waters are listed solely because they contain Eurasian
192.25water milfoil and if the equipment for taking is limited to cylindrical minnow traps not
192.26exceeding 16 inches in diameter and 32 inches in length; and.
192.27(3) (c) In streams or rivers that are listed as infested waters, except those listed as
192.28infested with certifiable diseases of fish, as defined under section 17.4982, subdivision 6,
192.29the harvest of bullheads, goldeyes, mooneyes, sheepshead (freshwater drum), and suckers
192.30for bait from streams or rivers listed as infested waters, by hook and line for noncommercial
192.31personal use. Other provisions that apply to this clause are is allowed as follows:
192.32(i) (1) fish taken under this clause paragraph must be used on the same body of water
192.33where caught and while still on that water body. Where the river or stream is divided by
192.34barriers such as dams, the fish must be caught and used on the same section of the river
192.35or stream;
193.1(ii) (2) fish taken under this clause paragraph may not be transported live from or
193.2off the water body;
193.3(iii) (3) fish harvested under this clause paragraph may only be used in accordance
193.4with this section;
193.5(iv) (4) any other use of wild animals used for bait from infested waters is prohibited;
193.6(v) (5) fish taken under this clause paragraph must meet all other size restrictions
193.7and requirements as established in rules; and
193.8(vi) (6) all species listed under this clause paragraph shall be included in the person's
193.9daily limit as established in rules, if applicable.
193.10(d) In the Mississippi River downstream of St. Anthony Falls and the St.
193.11Croix River downstream of the dam at Taylors Falls, including portions described as
193.12Minnesota-Wisconsin boundary waters in Minnesota Rules, part 6266.0500, subpart 1,
193.13items A and B, the harvest of gizzard shad by cast net for noncommercial personal use as
193.14bait for angling, as provided in a permit issued under section 84D.11, is allowed as follows:
193.15    (1) nontarget species must immediately be returned to the water;
193.16(2) gizzard shad taken under this paragraph must be used on the same body of water
193.17where caught and while still on that water body. Where the river is divided by barriers
193.18such as dams, the gizzard shad must be caught and used on the same section of the river;
193.19(3) gizzard shad taken under this paragraph may not be transported off the water
193.20body; and
193.21(4) gizzard shad harvested under this paragraph may only be used in accordance
193.22with this section.
193.23This paragraph expires December 1, 2017.
193.24    (c) (e) Equipment authorized for minnow harvest in a listed infested water by permit
193.25issued under paragraph (b) may not be transported to, or used in, any waters other than
193.26waters specified in the permit.

193.27    Sec. 5. Minnesota Statutes 2014, section 86B.201, is amended by adding a subdivision
193.28to read:
193.29    Subd. 4. Construction area restrictions. The commissioner, after consulting with
193.30the governmental units and contractors involved in a construction project, may adopt,
193.31by written order, temporary water surface use controls for recreational uses at public
193.32construction and maintenance sites that cross or are adjacent to waters of the state for a
193.33period of time not to exceed the duration of the construction or maintenance project.
193.34Temporary controls adopted under this subdivision are exempt from the rulemaking
193.35requirements of chapter 14 and section 14.386 does not apply.

194.1    Sec. 6. Minnesota Statutes 2014, section 86B.313, subdivision 1, is amended to read:
194.2    Subdivision 1. General requirements. (a) In addition to requirements of other laws
194.3relating to watercraft, a person may not operate or permit the operation of a personal
194.4watercraft:
194.5(1) without each person on board the personal watercraft wearing a United States
194.6Coast Guard (USCG) approved Type I, II, III, or V wearable personal flotation device
194.7with a USCG label indicating it either is approved for or does not prohibit use with
194.8personal watercraft or water skiing;
194.9(2) between one hour before sunset and 9:30 a.m.;
194.10(3) at greater than slow-no wake speed within 150 feet of:
194.11(i) a shoreline;
194.12(ii) a dock;
194.13(iii) a swimmer;
194.14(iv) a raft used for swimming or diving; or
194.15(v) a moored, anchored, or nonmotorized watercraft;
194.16(4) while towing a person on water skis, a kneeboard, an inflatable craft, or any
194.17other device unless:
194.18(i) an observer is on board; or
194.19(ii) the personal watercraft is equipped with factory-installed or factory-specified
194.20accessory mirrors that give the operator a wide field of vision to the rear;
194.21(5) without the lanyard-type engine cutoff switch being attached to the person,
194.22clothing, or personal flotation device of the operator, if the personal watercraft is equipped
194.23by the manufacturer with such a device;
194.24(6) if any part of the spring-loaded throttle mechanism has been removed, altered, or
194.25tampered with so as to interfere with the return-to-idle system;
194.26(7) to chase or harass wildlife;
194.27(8) through emergent or floating vegetation at other than a slow-no wake speed;
194.28(9) in a manner that unreasonably or unnecessarily endangers life, limb, or property,
194.29including weaving through congested watercraft traffic, jumping the wake of another
194.30watercraft within 150 feet of the other watercraft, or operating the watercraft while
194.31facing backwards;
194.32(10) in any other manner that is not reasonable and prudent; or
194.33(11) without a personal watercraft rules decal, issued by the commissioner, attached
194.34to the personal watercraft so as to be in full view of the operator.
195.1(b) Paragraph (a), clause (3), does not apply to a person operating a personal
195.2watercraft to launch or land a person on water skis, a kneeboard, or similar device by the
195.3most direct route to open water.

195.4    Sec. 7. Minnesota Statutes 2014, section 86B.313, subdivision 4, is amended to read:
195.5    Subd. 4. Dealers and rental operations. (a) A dealer of personal watercraft shall
195.6distribute a summary of the laws and rules governing the operation of personal watercraft
195.7and, upon request, shall provide instruction to a purchaser regarding:
195.8(1) the laws and rules governing personal watercraft; and
195.9(2) the safe operation of personal watercraft.
195.10(b) A person who offers personal watercraft for rent:
195.11(1) shall provide a summary of the laws and rules governing the operation of
195.12personal watercraft and provide instruction regarding the laws and rules and the safe
195.13operation of personal watercraft to each person renting a personal watercraft;
195.14(2) shall provide a United States Coast Guard (USCG) approved Type I, II, III, or V
195.15wearable personal flotation device with a USCG label indicating it either is approved for
195.16or does not prohibit use with personal watercraft or water skiing and any other required
195.17safety equipment to all persons who rent a personal watercraft at no additional cost; and
195.18(3) shall require that a watercraft operator's permit from this state or from the
195.19operator's state of residence be shown each time a personal watercraft is rented to any
195.20person younger than age 18 and shall record the permit on the form provided by the
195.21commissioner.
195.22(c) Each dealer of personal watercraft or person offering personal watercraft for rent
195.23shall have the person who purchases or rents a personal watercraft sign a form provided
195.24by the commissioner acknowledging that the purchaser or renter has been provided a copy
195.25of the laws and rules regarding personal watercraft operation and has read them. The form
195.26must be retained by the dealer or person offering personal watercraft for rent for a period
195.27of six months following the date of signature and must be made available for inspection
195.28by sheriff's deputies or conservation officers during normal business hours.

195.29    Sec. 8. Minnesota Statutes 2014, section 86B.315, is amended to read:
195.3086B.315 TOWING PERSON ON WATER SKIS OR OTHER DEVICE.
195.31    Subdivision 1. Observer or mirror required. A person may not operate a
195.32watercraft on waters of this state and create a wake for a wake surfer or tow a person on
195.33water skis, an aquaplane, a surfboard, a saucer, or a similar device unless:
196.1(1) there is another person in the watercraft in addition to the operator who is in a
196.2position to continually observe the person being towed; or
196.3(2) the boat is equipped with a mirror providing the operator a wide field of vision
196.4to the rear.
196.5    Subd. 2. Prohibited night skiing or towing prohibited activities. On waters of this
196.6state, from one-half hour after sunset to sunrise of the following day, a person may not:
196.7(1) wake surf;
196.8(2) operate a watercraft creating a wake for a wake surfer;
196.9(3) be towed by a watercraft; or
196.10(4) operate a watercraft towing a person on water skis, an aquaplane, a surfboard, a
196.11saucer, or another device on waters of this state from one hour after sunset to sunrise of
196.12the following day.

196.13    Sec. 9. Minnesota Statutes 2014, section 97A.015, subdivision 49, is amended to read:
196.14    Subd. 49. Undressed bird. "Undressed bird" means:
196.15(1) a bird, excluding including ducks, with a fully feathered wing intact; or
196.16(2) a duck with a fully feathered wing and head attached; or
196.17(3) a pheasant, Hungarian partridge, or wild turkey with one leg and foot intact.

196.18    Sec. 10. Minnesota Statutes 2014, section 97A.045, subdivision 11, is amended to read:
196.19    Subd. 11. Power to prevent or control wildlife disease. (a) If the commissioner
196.20determines that action is necessary to prevent or control a wildlife disease, the
196.21commissioner may prevent or control wildlife disease in a species of wild animal in
196.22addition to the protection provided by the game and fish laws by further limiting, closing,
196.23expanding, or opening seasons or areas of the state; by reducing or increasing limits in
196.24areas of the state; by establishing disease management zones; by authorizing free licenses;
196.25by allowing shooting from motor vehicles by persons designated by the commissioner;
196.26by issuing replacement licenses for sick animals; by requiring sample collection from
196.27hunter-harvested animals; by limiting wild animal possession, transportation, and
196.28disposition; and by restricting wildlife feeding.
196.29    (b) The commissioner shall restrict wildlife feeding within the modified accredited
196.30bovine tuberculosis zone proposed by the Board of Animal Health. In addition to any
196.31other penalties provided by law, a person who violates wildlife feeding restrictions
196.32required under this paragraph may not obtain a hunting license to take a wild animal
196.33for two years after the date of conviction.
197.1    (c) The commissioner may prevent or control wildlife disease in a species of wild
197.2animal in the state by posting restrictions on public access to active disease areas or by
197.3emergency rule adopted under section 84.027, subdivision 13.
197.4EFFECTIVE DATE.This section is effective the day following final enactment.

197.5    Sec. 11. Minnesota Statutes 2014, section 97A.057, subdivision 1, is amended to read:
197.6    Subdivision 1. Compliance with federal law. The commissioner shall take any
197.7action necessary to comply with the Federal Aid in Wildlife Restoration Act, United
197.8States Code, title 16, sections 669 to 669i, and the Federal Aid in Fish Restoration Act,
197.9United States Code, title 16, sections 777 to 777k. Notwithstanding section 16E.145 or
197.10any other law to the contrary, an appropriation for an information or telecommunications
197.11technology project from the game and fish fund, as established in section 97A.055, must
197.12be made to the commissioner. Any assets acquired with or expenditures made from the
197.13game and fish fund must remain under control of the commissioner.
197.14EFFECTIVE DATE.This section is effective the day following final enactment.

197.15    Sec. 12. Minnesota Statutes 2014, section 97A.211, subdivision 1, is amended to read:
197.16    Subdivision 1. Notice to appear in court. (a) A person must be given notice to
197.17appear in court for a misdemeanor violation of the game and fish laws; chapter 84, 84D,
197.18103E, or 103G; sections 103F.201 to 103F.221; or section 103F.601 or 609.68 if:
197.19(1) the person is arrested and is released from custody prior to appearing before a
197.20court; or
197.21(2) the person is subject to a lawful arrest and is not arrested because it reasonably
197.22appears to the enforcement officer that arrest is unnecessary to prevent further criminal
197.23conduct and that there is a substantial likelihood that the person will respond to a notice.
197.24(b) The enforcement officer shall prepare, in quadruplicate, a written or electronic
197.25notice to appear in court as provided by Rules of Criminal Procedure and section 169.99.
197.26The notice must be in the form and has the effect of a summons and complaint. The notice
197.27must contain the name and address of the person charged, and the offense, and. The notice
197.28must contain the time and the place to appear in court. The court must have jurisdiction
197.29within the county where the offense is alleged to have been committed or must direct the
197.30defendant to contact the court or violations bureau to schedule an appearance.

197.31    Sec. 13. Minnesota Statutes 2014, section 97A.211, subdivision 2, is amended to read:
198.1    Subd. 2. Release after arrest. A person arrested for a misdemeanor violation of
198.2the game and fish laws; chapter 84, 84D, 103E, or 103G; sections 103F.201 to 103F.221;
198.3or section 103F.601 or 609.68 may obtain release by signing the written notice prepared
198.4by the arresting officer promising to appear in court. The officer shall deliver a copy
198.5marked "SUMMONS" notice to the person arrested. The officer must then release the
198.6person from custody.

198.7    Sec. 14. Minnesota Statutes 2014, section 97A.255, subdivision 4, is amended to read:
198.8    Subd. 4. Each violation a separate offense; prosecution of aggregated offenses.
198.9(a) Except as allowed in paragraph (b), each wild animal unlawfully taken, bought,
198.10sold, transported, or possessed is a separate offense. If acquitted, a person may not be
198.11prosecuted for a similar offense involving another animal in the same incident.
198.12(b) In any prosecution that involves two or more offenses committed by the same
198.13person within six months in two or more counties, the accused may be prosecuted in any
198.14county in which one of the offenses was committed for all of the offenses in aggregate.
198.15EFFECTIVE DATE.This section is effective the day following final enactment.

198.16    Sec. 15. Minnesota Statutes 2014, section 97A.411, subdivision 3, is amended to read:
198.17    Subd. 3. Deer license. (a) Except as provided in paragraphs (b) and (c), a license
198.18to take deer by archery, firearms, or muzzleloader issued after the opening of the related
198.19archery, firearms, or muzzleloader deer season, respectively, is not valid until the second
198.20day after unless it is was issued prior to legal shooting hours on the day of its first use.
198.21(b) The commissioner may issue a license to take additional deer under section
198.2297B.301, subdivision 4 , that is not valid immediately upon issuance unless it was issued
198.23prior to legal shooting hours on the day the license is first used.
198.24(c) Paragraph (a) does not apply to deer licenses for discharged military personnel
198.25under section 97A.465, subdivision 4.

198.26    Sec. 16. Minnesota Statutes 2014, section 97A.435, subdivision 4, is amended to read:
198.27    Subd. 4. Separate selection of eligible licensees. (a) The commissioner may
198.28conduct a separate selection for up to 20 percent of the turkey licenses to be issued for any
198.29area. Only persons who are owners or tenants of and who live on at least 40 acres of land
198.30in the permit area, and their family members who live on the qualifying land, are eligible
198.31applicants for turkey licenses for the separate selection. The qualifying land may be
198.32noncontiguous. Persons who are unsuccessful in a separate selection must be included in
198.33the selection for the remaining licenses. Persons who obtain a license in a separate selection
199.1must allow public turkey hunting on their land during that turkey season. A license issued
199.2under this subdivision is restricted to the permit area where the qualifying land is located.
199.3(b) The commissioner may by rule establish criteria for determining eligible family
199.4members under this subdivision.

199.5    Sec. 17. Minnesota Statutes 2014, section 97A.465, is amended by adding a
199.6subdivision to read:
199.7    Subd. 7. Residents of veterans homes. (a) A resident from a Minnesota veterans
199.8home may obtain a firearm or muzzleloader deer license during the season and take
199.9antlerless deer without a permit in all areas of the state open during the respective regular
199.10firearms or muzzleloader deer seasons in any permit area. This subdivision does not
199.11authorize the taking of an antlerless deer by another member of a party under section
199.1297B.301, subdivision 3, in an area closed to taking antlerless deer or where the number of
199.13antlerless deer that may be taken is limited by a quota on the number of permits.
199.14(b) A person may assist a Minnesota veterans home resident during the firearms or
199.15muzzleloader deer season without having a deer hunting license, but the person may
199.16not shoot a deer.

199.17    Sec. 18. [97A.56] FERAL SWINE.
199.18    Subdivision 1. Definition. For purposes of this section, "feral swine" means a
199.19member of the genus and species Sus scrofa that lives in the wild.
199.20    Subd. 2. Prohibited actions; penalty. (a) A person may not possess or release
199.21feral swine or swine that were feral during any part of the swines' lifetime or allow feral
199.22swine to run at large.
199.23(b) A person may not hunt or trap feral swine, except as authorized by the
199.24commissioner for feral swine control or eradication. It is not a violation of this section if a
199.25person shoots a feral swine and reports the taking to the commissioner within 24 hours.
199.26All swine taken in this manner must be surrendered to the commissioner.
199.27(c) A person who violates this subdivision is guilty of a misdemeanor.
199.28    Subd. 3. Authorized removal of feral swine. A person authorized under game and
199.29fish laws to take feral swine is not liable to the owner for the value of the animals.
199.30EFFECTIVE DATE.This section is effective the day following final enactment.

199.31    Sec. 19. Minnesota Statutes 2014, section 97B.041, is amended to read:
200.197B.041 POSSESSION OF FIREARMS AND AMMUNITION RESTRICTED
200.2IN DEER ZONES.
200.3    (a) A person may not possess a firearm or ammunition outdoors during the period
200.4beginning the fifth day before the open firearms season and ending the second day after
200.5the close of the season within an area where deer may be taken by a firearm, except:
200.6    (1) during the open season and in an area where big game may be taken, a firearm
200.7and ammunition authorized for taking big game in that area may be used to take big game
200.8in that area if the person has a valid big game license in possession;
200.9    (2) an unloaded firearm that is in a case or in a closed trunk of a motor vehicle;
200.10    (3) a shotgun and shells containing No. 4 buckshot or smaller diameter lead shot
200.11or steel shot;
200.12    (4) a handgun or rifle capable of firing only rimfire cartridges of .17 and .22 caliber,
200.13including .22 magnum caliber cartridges;
200.14    (5) handguns possessed by a person authorized to carry a handgun under sections
200.15624.714 and 624.715 for the purpose authorized; and
200.16    (6) on a target range operated under a permit from the commissioner.
200.17    (b) This section does not apply during an open firearms season in an area where deer
200.18may be taken only by muzzleloader, except that muzzle-loading firearms lawful for the
200.19taking of deer may be possessed only by persons with a valid license to take deer by
200.20muzzleloader during the muzzleloader season. While muzzleloader hunting, a person with
200.21a valid license to take deer by muzzleloader may not possess a firearm other than:
200.22(1) a muzzleloader that is legal for taking deer under section 97B.031, subdivision
200.231
; and
200.24(2) a firearm as described in paragraph (a), clauses (2) to (5).
200.25(c) A first violation of paragraph (a) is punishable by a warning.

200.26    Sec. 20. Minnesota Statutes 2014, section 97B.063, is amended to read:
200.2797B.063 HUNTER SATISFACTION SURVEY.
200.28The commissioner shall annually administer the collection of hunter information
200.29related to participation and satisfaction. This may include information on preferences,
200.30values, interests, participation rates and patterns, barriers to participation, or other factors.
200.31The data shall be collected using established social science methods. The commissioner
200.32shall annually submit a summary of the information gathered under this section to
200.33the chairs and ranking minority members of the house of representatives and senate
200.34committees and divisions with jurisdiction over environment and natural resources no
201.1later than January 1 for the preceding fiscal year. The commissioner shall also make the
201.2summary information available on the department's Web site.

201.3    Sec. 21. Minnesota Statutes 2014, section 97B.081, subdivision 3, is amended to read:
201.4    Subd. 3. Exceptions. (a) It is not a violation of this section for a person to:
201.5(1) cast the rays of a spotlight, headlight, or other artificial light to take raccoons
201.6according to section 97B.621, subdivision 3, or tend traps according to section 97B.931;
201.7(2) hunt fox or coyote from January 1 to March 15 while using a handheld artificial
201.8light, provided that the person is:
201.9(i) on foot;
201.10(ii) using a shotgun;
201.11(iii) not within a public road right-of-way;
201.12(iv) using a handheld or electronic calling device; and
201.13(v) not within 200 feet of a motor vehicle; or
201.14(3) cast the rays of a handheld artificial light to retrieve wounded or dead big game
201.15animals, provided that the person is:
201.16(i) on foot; and
201.17(ii) not in possession of a firearm or bow.
201.18(b) It is not a violation of subdivision 2 for a person to cast the rays of a spotlight,
201.19headlight, or other artificial light to:
201.20(1) carry out any agricultural, safety, emergency response, normal vehicle operation,
201.21or occupation-related activities that do not involve taking wild animals; or
201.22(2) carry out outdoor recreation as defined in section 97B.001 that is not related to
201.23spotting, locating, or taking a wild animal.
201.24(c) Except as otherwise provided by the game and fish laws, it is not a violation of
201.25this section for a person to use an electronic range finder device from one-half hour before
201.26sunrise until one-half hour after sunset while lawfully hunting wild animals.
201.27(d) It is not a violation of this section for a licensed bear hunter to cast the rays of a
201.28handheld artificial light to track or retrieve a wounded or dead bear while possessing a
201.29firearm, provided that the person:
201.30(1) has the person's valid bear hunting license in possession;
201.31(2) is on foot; and
201.32(3) is following the blood trail of a bear that was shot during legal shooting hours.

201.33    Sec. 22. Minnesota Statutes 2014, section 97B.085, subdivision 2, is amended to read:
202.1    Subd. 2. Taking unprotected wild animals; permit required. A person may not
202.2use radio equipment to take unprotected wild animals without a permit. The commissioner
202.3may issue a permit to take unprotected animals with radio equipment. The commissioner
202.4shall cancel the permit upon receiving a valid complaint of misconduct regarding the
202.5permittee's hunting activities.

202.6    Sec. 23. Minnesota Statutes 2014, section 97B.301, is amended by adding a
202.7subdivision to read:
202.8    Subd. 9. Residents age 84 or over may take deer of either sex. A resident age 84
202.9or over may take a deer of either sex. This subdivision does not authorize the taking of an
202.10antlerless deer by another member of a party under subdivision 3.

202.11    Sec. 24. [97B.722] POSSESSION OF FIREARMS; HUNTING TURKEY.
202.12(a) While afield hunting turkeys, licensees may not have in possession or control
202.13any firearm or bow and arrow except those defined as legal for taking turkeys in rules
202.14adopted by the commissioner.
202.15(b) Paragraph (a) does not apply to a person carrying a handgun in compliance
202.16with section 624.714.

202.17    Sec. 25. [97B.9251] BEAVER SEASON.
202.18The commissioner may establish open seasons and restrictions for taking beaver from
202.199:00 a.m. on the Saturday nearest October 26 in the North Zone and from 9:00 a.m. on the
202.20Saturday nearest October 30 in the South Zone. The seasons shall be open until May 15.

202.21    Sec. 26. Minnesota Statutes 2014, section 97C.345, is amended by adding a
202.22subdivision to read:
202.23    Subd. 3a. Cast nets for gizzard shad. (a) Cast nets may be used only to take
202.24gizzard shad for use as bait for angling:
202.25(1) from July 1 to November 30; and
202.26(2) from the Mississippi River downstream of St. Anthony Falls and the St.
202.27Croix River downstream of the dam at Taylors Falls, including portions described as
202.28Minnesota-Wisconsin boundary waters in Minnesota Rules, part 6266.0500, subpart
202.291, items A and B, that are listed as infested waters as allowed under section 84D.03,
202.30subdivision 3.
203.1(b) Cast nets used under this subdivision must be monofilament and may not exceed
203.2seven feet in diameter, and mesh size must be from three-eighths to five-eighths inch bar
203.3measure.
203.4(c) This subdivision expires December 1, 2017. The commissioner must report
203.5to the chairs and ranking minority members of the house of representatives and senate
203.6committees with jurisdiction over environment and natural resources by March 1, 2018,
203.7on the number of permits issued, conservation impacts from the use of cast nets, and
203.8recommendations for any necessary changes in statutes or rules.

203.9    Sec. 27. Minnesota Statutes 2014, section 97C.501, subdivision 2, is amended to read:
203.10    Subd. 2. Minnow dealers. (a) A person may not be a minnow dealer without a
203.11minnow dealer license except as provided in subdivision 3.
203.12(b) A minnow dealer must obtain a minnow dealer's vehicle license for each motor
203.13vehicle used to transport minnows. The serial number, motor vehicle license number,
203.14make, and model must be on the license. The license must be conspicuously displayed
203.15in the vehicle.
203.16(c) A minnow dealer may not transport minnows out of the state without an
203.17exporting minnow dealer license. A minnow dealer must obtain an exporting minnow
203.18dealer's vehicle license for each motor vehicle used to transport minnows out of the state.
203.19The serial number, motor vehicle license number, make, and model must be on the license.
203.20The license must be conspicuously displayed in the vehicle.
203.21(d) A person with a minnow dealer's license may sell minnows at one retail outlet.
203.22A minnow dealer must obtain a minnow retailer license for each additional retail outlet
203.23operated. A minnow dealer operating a retail outlet under a minnow dealer's license must
203.24list the following information for the retail outlet: name of the business; city; state; zip
203.25code; and legal description or fire number. The retail outlet name and location may be
203.26changed by making application to the commissioner.
203.27(e) A minnow dealer may designate employees as helpers who are authorized to
203.28take, buy, sell, and transport minnows on behalf of the minnow dealer. The employees
203.29designated as helpers must be listed on the minnow dealer's license, and a copy of the
203.30license designating the employee as a helper must be in the helper's possession when
203.31acting on behalf of the minnow dealer. The minnow dealer may add and delete helpers
203.32listed on the dealer's license within a license year by notifying the commissioner in writing
203.33of the change to the license. Employees who are acting under the direction and control of
203.34the minnow dealer but who are not designated as helpers may not buy or sell minnows on
204.1behalf of the minnow dealer. This paragraph does not apply to employees selling minnows
204.2at the retail outlet location under paragraph (d).
204.3EFFECTIVE DATE.This section is effective March 1, 2016.

204.4    Sec. 28. RULEMAKING; LIFTING SPEARING BANS AND NORTHERN PIKE
204.5REGULATIONS.
204.6(a) The commissioner of natural resources shall amend Minnesota Rules, parts
204.76262.0575, subpart 9, and 6264.0400, subparts 70 and 72, to delete the language
204.8prohibiting spearing.
204.9(b) Notwithstanding Minnesota Statutes, section 97C.007, the commissioner of
204.10natural resources shall amend Minnesota Rules, part 6264.0400, subpart 71, to delete the
204.11language prohibiting spearing and modify the northern pike protected slot to 26 to 40 inches.
204.12(c) The commissioner may use the good cause exemption under Minnesota Statutes,
204.13section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
204.14Statutes, section 14.386, does not apply.
204.15EFFECTIVE DATE.This section is effective July 1, 2015.

204.16    Sec. 29. RULEMAKING; WATER SURFACE USE RESTRICTIONS.
204.17(a) The commissioner of natural resources shall amend Minnesota Rules, part
204.186110.3700, subpart 9, to allow a longer period of temporary special controls in situations
204.19of local emergency by deleting "five" and inserting "30" and deleting "five-day" and
204.20inserting "30-day."
204.21(b) The commissioner may use the good cause exemption under Minnesota Statutes,
204.22section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
204.23Statutes, section 14.386, does not apply except as provided under Minnesota Statutes,
204.24section 14.388.

204.25    Sec. 30. RULEMAKING; PERSONAL FLOTATION DEVICES.
204.26(a) To conform with changes in federal regulation, the commissioner of natural
204.27resources shall amend Minnesota Rules, part 6110.1200, subpart 3, as follows:
204.28(1) delete the term "Type I, II, or III" and insert "wearable";
204.29(2) delete the term "Type IV" and insert "throwable";
204.30(3) delete items B and D and reletter the remaining items; and
204.31(4) insert a new item that reads:
204.32"C. All personal flotation devices required by this subpart must be:
205.1(1) approved by the U.S. Coast Guard;
205.2(2) legibly marked with any requirements and the approval number issued by the
205.3U.S. Coast Guard;
205.4(3) in serviceable condition free of tears, rot, punctures, or waterlogging, and with
205.5all straps and fasteners present and in good condition;
205.6(4) of the appropriate size for the intended wearer, if the device is designed to be worn,
205.7and in compliance with any requirements listed on the U.S. Coast Guard approval label;
205.8(5) for wearable devices, either readily accessible or worn, except when:
205.9(a) devices are required to be worn to be accepted as U.S. Coast Guard-approved; or
205.10(b) wearing a U.S. Coast Guard-approved wearable personal flotation device is
205.11mandatory; and
205.12(6) for throwable devices, immediately available.
205.13"Readily accessible" means easily retrievable within a reasonable amount of time
205.14in an emergency. "Immediately available" means easily reached in time of emergency.
205.15Personal flotation devices located in locked containers, under heavy objects, or left in
205.16shipping bags are not considered readily accessible or immediately available."
205.17(b) The commissioner may use the good cause exemption under Minnesota Statutes,
205.18section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
205.19Statutes, section 14.386, does not apply except as provided under Minnesota Statutes,
205.20section 14.388.

205.21    Sec. 31. RULEMAKING; MOTORIZED TRAIL ENVIRONMENTAL REVIEW.
205.22(a) The Environmental Quality Board shall amend Minnesota Rules, chapter 4410, to
205.23allow the following without preparing a mandatory environmental assessment worksheet:
205.24(1) constructing a recreational trail less than 25 miles long on forested or other
205.25naturally vegetated land for a recreational use;
205.26(2) adding a new motorized recreational use or a seasonal motorized recreational
205.27use to an existing motorized recreational trail if the treadway width is not expanded as a
205.28result of the added use; and
205.29(3) designating an existing, legally constructed route, such as a logging road, for
205.30motorized recreational trail use.
205.31(b) The board may use the good cause exemption rulemaking procedure under
205.32Minnesota Statutes, section 14.388, subdivision 1, clause (3), to adopt rules under this
205.33section, and Minnesota Statutes, section 14.386, does not apply except as provided under
205.34Minnesota Statutes, section 14.388.

206.1    Sec. 32. REPEALER.
206.2(a) Minnesota Statutes 2014, section 97A.475, subdivision 25, is repealed.
206.3(b) Minnesota Rules, part 6264.0400, subparts 27 and 28, are repealed.
206.4EFFECTIVE DATE.Paragraph (b) is effective July 1, 2015."
206.5Amend the title as follows:
206.6Page 1, delete lines 2 to 17
206.7Page 1, line 18, delete everything before "amending" and insert "relating to state
206.8government; appropriating money for agriculture, environment, and natural resources;
206.9modifying public entity purchasing requirements; modifying solid waste provisions;
206.10modifying subsurface sewage treatment systems provisions; modifying Dry Cleaner
206.11Environmental Response and Reimbursement Law; modifying environmental review;
206.12modifying structure of Minnesota Pollution Control Agency; modifying disposition of
206.13certain revenue; providing for temporary water surface use controls; providing for riparian
206.14buffers; providing for self-reporting of certain environmental violations; modifying
206.15compensable losses due to harmful substances; modifying invasive species provisions;
206.16modifying landowners' bill of rights; modifying state parks and trails provisions;
206.17modifying recreational vehicle provisions; modifying land sale and acquisition provisions;
206.18modifying forestry and timber provisions; modifying regulation of camper cabins and bunk
206.19houses; providing for all-terrain vehicle safety training indication on drivers' licenses and
206.20identification cards; creating accounts; modifying certain grant, permit, and fee provisions;
206.21modifying Water Law; modifying personal flotation device provisions; regulating wake
206.22surfing; modifying game and fish laws; modifying metropolitan area water supply planning
206.23provisions; regulating water quality standards; making policy and technical changes to
206.24various agricultural related provisions, including provisions related to pesticides, plant
206.25protection, fertilizers, nursery law, seeds, dairy, food handlers, food, farmland, farming,
206.26and loans; authorizing the Industrial Hemp Development Act; modifying license exclusions
206.27for the direct sale of certain prepared food; establishing the agriculture research, education,
206.28extension, and technology transfer grant program; providing incentive payments; providing
206.29a vocational training pilot program; establishing the farm opportunity loan program;
206.30requiring studies and reports; requiring rulemaking; providing criminal penalties;"
206.31Correct the title numbers accordingly
207.1
We request the adoption of this report and repassage of the bill.
207.2
House Conferees:
207.3
.....
.....
207.4
Denny McNamara
Rod Hamilton
207.5
.....
.....
207.6
Tom Hackbarth
Dan Fabian
207.7
.....
207.8
David Dill
207.9
Senate Conferees:
207.10
.....
.....
207.11
David J. Tomassoni
Dan Sparks
207.12
.....
.....
207.13
John A. Hoffman
John Marty
207.14
.....
207.15
Bill Weber