1.1A bill for an act
1.2relating to state government; appropriating money for environment, natural
1.3resources, and agriculture; modifying and providing for certain fees; modifying
1.4and providing for disposition of certain revenue; creating accounts; modifying
1.5payment of certain costs; modifying grant programs; providing for agricultural
1.6water quality certification; modifying Minnesota Noxious Weed Law; modifying
1.7pesticide control; modifying animal waste technician provisions; modifying
1.8certain renewable energy and biofuel provisions; modifying bonding requirements
1.9for grain buyers and grain storage; making technical changes; modifying certain
1.10permit requirements; providing for federal law compliance; providing for certain
1.11easements; establishing pollinator habitat program; modifying state trails;
1.12providing for donations to grant-in-aid trail programs; modifying all-terrain
1.13vehicle operating provisions; modifying State Timber Act; modifying water
1.14use requirements; modifying certain park boundaries; modifying reporting
1.15requirements; modifying Petroleum Tank Release Cleanup Act; providing for
1.16silica sand mining model standards and technical assistance; establishing criteria
1.17for wastewater treatment system projects; providing for wastewater laboratory
1.18certification; providing for product stewardship programs; modifying Minnesota
1.19Power Plant Siting Act; providing for sanitary districts; requiring rulemaking;
1.20amending Minnesota Statutes 2012, sections 17.03, subdivision 3; 17.1015;
1.2117.118, subdivision 2; 18.77, subdivisions 3, 4, 10, 12; 18.78, subdivision 3;
1.2218.79, subdivisions 6, 13; 18.82, subdivision 1; 18.91, subdivisions 1, 2; 18B.01,
1.23by adding a subdivision; 18B.065, subdivision 2a; 18B.07, subdivisions 4, 5, 7;
1.2418B.26, subdivision 3; 18B.305; 18B.316, subdivisions 1, 3, 4, 8, 9; 18B.37,
1.25subdivision 4; 18C.430; 18C.433, subdivision 1; 31.94; 41A.10, subdivision 2,
1.26by adding a subdivision; 41A.105, subdivisions 1a, 3, 5; 41A.12, by adding a
1.27subdivision; 41B.04, subdivision 9; 41D.01, subdivision 4; 84.027, by adding
1.28a subdivision; 84.788, by adding a subdivision; 84.794, subdivision 1; 84.798,
1.29by adding a subdivision; 84.803, subdivision 1; 84.82, by adding subdivisions;
1.3084.83, subdivision 2; 84.922, by adding subdivisions; 84.9256, subdivision
1.311; 84.928, subdivision 1; 84D.108, subdivision 2; 85.015, subdivision 13;
1.3285.052, subdivision 6; 85.054, by adding a subdivision; 85.055, subdivisions
1.331, 2; 85.41, by adding a subdivision; 85.42; 85.43; 85.46, subdivision 6,
1.34by adding a subdivision; 89.0385; 89.17; 90.01, subdivisions 4, 5, 6, 8, 11;
1.3590.031, subdivision 4; 90.041, subdivisions 2, 5, 6, 9, by adding subdivisions;
1.3690.045; 90.061, subdivision 8; 90.101, subdivision 1; 90.121; 90.145; 90.151,
1.37subdivisions 1, 2, 3, 4, 6, 7, 8, 9; 90.161; 90.162; 90.171; 90.181, subdivision 2;
1.3890.191, subdivision 1; 90.193; 90.195; 90.201, subdivision 2a; 90.211; 90.221;
1.3990.252, subdivision 1; 90.301, subdivisions 2, 4; 90.41, subdivision 1; 92.50;
2.193.17, subdivision 1; 93.1925, subdivision 2; 93.25, subdivision 2; 93.285,
2.2subdivision 3; 93.46, by adding a subdivision; 93.481, subdivisions 3, 5, by
2.3adding subdivisions; 93.482; 97A.401, subdivision 3; 103G.265, subdivisions 2,
2.43; 103G.271, subdivision 6; 103G.282; 103G.287, subdivisions 1, 5; 103G.615,
2.5subdivision 2; 103I.205, subdivision 1; 103I.601, by adding a subdivision;
2.6114D.50, subdivision 4; 115A.1320, subdivision 1; 115B.20, subdivision 6;
2.7115B.28, subdivision 1; 115C.02, subdivision 4; 115C.08, subdivision 4, by
2.8adding a subdivision; 115D.10; 116.48, subdivision 6; 116C.03, subdivisions
2.92, 4, 5; 116D.04, by adding a subdivision; 116J.437, subdivision 1; 168.1296,
2.10subdivision 1; 216E.12, subdivision 4; 223.17, by adding a subdivision; 232.22,
2.11by adding a subdivision; 239.051, by adding subdivisions; 239.791, subdivisions
2.121, 2a, 2b; 239.7911; 275.066; 296A.01, subdivision 19, by adding a subdivision;
2.13473.846; Laws 2012, chapter 249, section 11; proposing coding for new law in
2.14Minnesota Statutes, chapters 17; 18; 84; 90; 93; 115; 115A; 116C; proposing
2.15coding for new law as Minnesota Statutes, chapter 442A; repealing Minnesota
2.16Statutes 2012, sections 18.91, subdivisions 3, 5; 18B.07, subdivision 6; 90.163;
2.1790.173; 90.41, subdivision 2; 103G.265, subdivision 2a; 115.18, subdivisions 1,
2.183, 4, 5, 6, 7, 8, 9, 10; 115.19; 115.20; 115.21; 115.22; 115.23; 115.24; 115.25;
2.19115.26; 115.27; 115.28; 115.29; 115.30; 115.31; 115.32; 115.33; 115.34; 115.35;
2.20115.36; 115.37; 239.791, subdivision 1a; Minnesota Rules, parts 7021.0010,
2.21subparts 1, 2, 4, 5; 7021.0020; 7021.0030; 7021.0040; 7021.0050, subpart
2.225; 9210.0300; 9210.0310; 9210.0320; 9210.0330; 9210.0340; 9210.0350;
2.239210.0360; 9210.0370; 9210.0380; 9220.0530, subpart 6.
2.24BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.25ARTICLE 1
2.26AGRICULTURE APPROPRIATIONS

2.27
Section 1. SUMMARY OF APPROPRIATIONS.
2.28The amounts shown in this section summarize direct appropriations, by fund, made
2.29in this article.
2.30
2014
2015
Total
2.31
General
$
39,504,000
$
39,646,000
$
79,150,000
2.32
Agricultural
$
1,240,000
$
1,240,000
$
2,480,000
2.33
Remediation
$
388,000
$
388,000
$
776,000
2.34
Total
$
41,132,000
$
41,274,000
$
82,406,000

2.35
Sec. 2. AGRICULTURE APPROPRIATIONS.
2.36The sums shown in the columns marked "Appropriations" are appropriated to the
2.37agencies and for the purposes specified in this article. The appropriations are from the
2.38general fund, or another named fund, and are available for the fiscal years indicated
2.39for each purpose. The figures "2014" and "2015" used in this article mean that the
2.40appropriations listed under them are available for the fiscal year ending June 30, 2014, or
2.41June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
2.42year 2015. "The biennium" is fiscal years 2014 and 2015.
3.1
APPROPRIATIONS
3.2
Available for the Year
3.3
Ending June 30
3.4
2014
2015

3.5
Sec. 3. DEPARTMENT OF AGRICULTURE.
3.6
Subdivision 1.Total Appropriation
$
33,620,000
$
33,736,000
3.7
Appropriations by Fund
3.8
2014
2015
3.9
General
31,992,000
32,102,000
3.10
Agricultural
1,240,000
1,240,000
3.11
Remediation
388,000
388,000
3.12The amounts that may be spent for each
3.13purpose are specified in the following
3.14subdivisions.
3.15
Subd. 2.Protection Services
12,883,000
12,883,000
3.16
Appropriations by Fund
3.17
2014
2015
3.18
General
12,055,000
12,055,000
3.19
Agricultural
440,000
440,000
3.20
Remediation
388,000
388,000
3.21$388,000 the first year and $388,000 the
3.22second year are from the remediation fund
3.23for administrative funding for the voluntary
3.24cleanup program.
3.25$75,000 the first year and $75,000 the second
3.26year are for compensation for destroyed or
3.27crippled animals under Minnesota Statutes,
3.28section 3.737. If the amount in the first year
3.29is insufficient, the amount in the second year
3.30is available in the first year.
3.31$75,000 the first year and $75,000 the second
3.32year are for compensation for crop damage
3.33under Minnesota Statutes, section 3.7371. If
3.34the amount in the first year is insufficient, the
4.1amount in the second year is available in the
4.2first year.
4.3If the commissioner determines that claims
4.4made under Minnesota Statutes, section
4.53.737 or 3.7371, are unusually high, amounts
4.6appropriated for either program may be
4.7transferred to the appropriation for the other
4.8program.
4.9$225,000 the first year and $225,000 the
4.10second year are for an increase in retail food
4.11handler inspections.
4.12$25,000 the first year and $25,000 the second
4.13year are for training manuals for licensure
4.14related to commercial manure application.
4.15$245,000 the first year and $245,000 the
4.16second year are for an increase in the
4.17operating budget for the Laboratory Services
4.18Division.
4.19The commissioner may spend up to $10,000
4.20of the amount appropriated each year under
4.21this subdivision to administer the agricultural
4.22water quality certification program.
4.23Notwithstanding Minnesota Statutes, section
4.2418B.05, $90,000 the first year and $90,000
4.25the second year are from the pesticide
4.26regulatory account in the agricultural fund
4.27for an increase in the operating budget for
4.28the Laboratory Services Division.
4.29Notwithstanding Minnesota Statutes, section
4.3018B.05, $100,000 the first year and $100,000
4.31the second year are from the pesticide
4.32regulatory account in the agricultural fund to
4.33update and modify applicator education and
4.34training materials. No later than January 15,
5.12015, the commissioner must report to the
5.2legislative committees with jurisdiction over
5.3agriculture finance regarding the agency's
5.4progress and a schedule of activities the
5.5commissioner will accomplish to update and
5.6modify additional materials by December
5.731, 2017.
5.8Notwithstanding Minnesota Statutes, section
5.918B.05, $100,000 the first year and $100,000
5.10the second year are from the pesticide
5.11regulatory account in the agricultural fund to
5.12monitor pesticides and pesticide degradates
5.13in surface water and groundwater in areas
5.14vulnerable to surface water impairments and
5.15groundwater degradation and to use data
5.16collected to improve pesticide use practices.
5.17This is a onetime appropriation.
5.18Notwithstanding Minnesota Statutes, section
5.1918B.05, $150,000 the first year and $150,000
5.20the second year are from the pesticide
5.21regulatory account in the agricultural fund
5.22for transfer to the commissioner of natural
5.23resources for pollinator habitat restoration
5.24that is visible to the public, along state trails,
5.25and located in various parts of the state and
5.26that includes an appropriate diversity of
5.27native species selected to provide habitat for
5.28pollinators throughout the growing season.
5.29The commissioner of natural resources may
5.30use up to $25,000 each year for pollinator
5.31habitat signage and public awareness. This is
5.32a onetime appropriation.
5.33
5.34
Subd. 3.Agricultural Marketing and
Development
3,152,000
3,152,000
5.35$186,000 the first year and $186,000 the
5.36second year are for transfer to the Minnesota
6.1grown account and may be used as grants
6.2for Minnesota grown promotion under
6.3Minnesota Statutes, section 17.102. Grants
6.4may be made for one year. Notwithstanding
6.5Minnesota Statutes, section 16A.28, the
6.6appropriations encumbered under contract
6.7on or before June 30, 2015, for Minnesota
6.8grown grants in this paragraph are available
6.9until June 30, 2017.
6.10$190,000 the first year and $190,000 the
6.11second year are for grants to farmers for
6.12demonstration projects involving sustainable
6.13agriculture as authorized in Minnesota
6.14Statutes, section 17.116, and for grants
6.15to small or transitioning farmers. Of the
6.16amount for grants, up to $20,000 may be
6.17used for dissemination of information about
6.18demonstration projects. Notwithstanding
6.19Minnesota Statutes, section 16A.28, the
6.20appropriations encumbered under contract
6.21on or before June 30, 2015, for sustainable
6.22agriculture grants in this paragraph are
6.23available until June 30, 2017.
6.24The commissioner may use funds
6.25appropriated in this subdivision for annual
6.26cost-share payments to resident farmers
6.27or entities that sell, process, or package
6.28agricultural products in this state for the costs
6.29of organic certification. Annual cost-share
6.30payments must be two-thirds of the cost of
6.31the certification or $350, whichever is less.
6.32A certified organic operation is eligible to
6.33receive annual cost-share payments for up to
6.34five years. In any year when federal organic
6.35cost-share program funds are available or
6.36when there is any excess appropriation in
7.1either fiscal year, the commissioner may
7.2allocate these funds for organic market and
7.3program development, including organic
7.4producer education efforts, assistance for
7.5persons transitioning from conventional
7.6to organic agriculture, or sustainable
7.7agriculture demonstration grants authorized
7.8under Minnesota Statutes, section 17.116,
7.9and pertaining to organic research or
7.10demonstration. Any unencumbered balance
7.11does not cancel at the end of the first year
7.12and is available for the second year.
7.13The commissioner may spend up to $25,000
7.14of the amount appropriated each year
7.15under this subdivision for pollinator habitat
7.16education and outreach efforts.
7.17
7.18
Subd. 4.Bioenergy and Value-Added
Agriculture
10,235,000
10,235,000
7.19$10,235,000 the first year and $10,235,000
7.20the second year are for the agricultural
7.21growth, research, and innovation program
7.22in Minnesota Statutes, section 41A.12.
7.23The commissioner shall consider creating
7.24a competitive grant program for small
7.25renewable energy projects for rural residents.
7.26No later than February 1, 2014, and February
7.271, 2015, the commissioner must report to
7.28the legislative committees with jurisdiction
7.29over agriculture policy and finance regarding
7.30the commissioner's accomplishments and
7.31anticipated accomplishments in the following
7.32areas: developing new markets for Minnesota
7.33farmers by providing more fruits and
7.34vegetables for Minnesota school children;
7.35facilitating the start-up, modernization,
7.36or expansion of livestock operations
8.1including beginning and transitioning
8.2livestock operations; facilitating the start-up,
8.3modernization, or expansion of other
8.4beginning and transitioning farms; research
8.5on conventional and cover crops; and biofuel
8.6and other renewable energy development
8.7including small renewable energy projects
8.8for rural residents.
8.9The commissioner may use up to 4.5 percent
8.10of this appropriation for costs incurred to
8.11administer the program. Any unencumbered
8.12balance does not cancel at the end of the first
8.13year and is available for the second year.
8.14Notwithstanding Minnesota Statutes, section
8.1516A.28, the appropriations encumbered
8.16under contract on or before June 30, 2015, for
8.17agricultural growth, research, and innovation
8.18grants in this subdivision are available until
8.19June 30, 2017.
8.20Funds in this appropriation may be used
8.21for bioenergy grants. The NextGen
8.22Energy Board, established in Minnesota
8.23Statutes, section 41A.105, shall make
8.24recommendations to the commissioner on
8.25grants for owners of Minnesota facilities
8.26producing bioenergy; for organizations that
8.27provide for on-station, on-farm field scale
8.28research and outreach to develop and test
8.29the agronomic and economic requirements
8.30of diverse stands of prairie plants and other
8.31perennials for bioenergy systems; or for
8.32certain nongovernmental entities. For the
8.33purposes of this paragraph, "bioenergy"
8.34includes transportation fuels derived from
8.35cellulosic material, as well as the generation
8.36of energy for commercial heat, industrial
9.1process heat, or electrical power from
9.2cellulosic materials via gasification or
9.3other processes. Grants are limited to 50
9.4percent of the cost of research, technical
9.5assistance, or equipment related to bioenergy
9.6production or $500,000, whichever is less.
9.7Grants to nongovernmental entities for the
9.8development of business plans and structures
9.9related to community ownership of eligible
9.10bioenergy facilities together may not exceed
9.11$150,000. The board shall make a good-faith
9.12effort to select projects that have merit and,
9.13when taken together, represent a variety of
9.14bioenergy technologies, biomass feedstocks,
9.15and geographic regions of the state. Projects
9.16must have a qualified engineer provide
9.17certification on the technology and fuel
9.18source. Grantees must provide reports at
9.19the request of the commissioner. No later
9.20than February 1, 2014, and February 1,
9.212015, the commissioner shall report on the
9.22projects funded under this appropriation to
9.23the legislative committees with jurisdiction
9.24over agriculture policy and finance.
9.25
9.26
Subd. 5.Administration and Financial
Assistance
7,350,000
7,460,000
9.27
Appropriations by Fund
9.28
2014
2015
9.29
General
6,550,000
6,660,000
9.30
Agricultural
800,000
800,000
9.31$634,000 the first year and $634,000 the
9.32second year are for continuation of the dairy
9.33development and profitability enhancement
9.34and dairy business planning grant programs
9.35established under Laws 1997, chapter
9.36216, section 7, subdivision 2, and Laws
10.12001, First Special Session chapter 2,
10.2section 9, subdivision 2. The commissioner
10.3may allocate the available sums among
10.4permissible activities, including efforts to
10.5improve the quality of milk produced in the
10.6state in the proportions that the commissioner
10.7deems most beneficial to Minnesota's
10.8dairy farmers. The commissioner must
10.9submit a detailed accomplishment report
10.10and a work plan detailing future plans for,
10.11and anticipated accomplishments from,
10.12expenditures under this program to the
10.13chairs and ranking minority members of the
10.14legislative committees with jurisdiction over
10.15agricultural policy and finance on or before
10.16the start of each fiscal year. If significant
10.17changes are made to the plans in the course
10.18of the year, the commissioner must notify the
10.19chairs and ranking minority members.
10.20$47,000 the first year and $47,000 the second
10.21year are for the Northern Crops Institute.
10.22These appropriations may be spent to
10.23purchase equipment.
10.24$18,000 the first year and $18,000 the
10.25second year are for a grant to the Minnesota
10.26Livestock Breeders' Association.
10.27$235,000 the first year and $235,000 the
10.28second year are for grants to the Minnesota
10.29Agriculture Education Leadership Council
10.30for programs of the council under Minnesota
10.31Statutes, chapter 41D.
10.32$474,000 the first year and $474,000 the
10.33second year are for payments to county and
10.34district agricultural societies and associations
10.35under Minnesota Statutes, section 38.02,
11.1subdivision 1. Aid payments to county and
11.2district agricultural societies and associations
11.3shall be disbursed no later than July 15 of
11.4each year. These payments are the amount of
11.5aid from the state for an annual fair held in
11.6the previous calendar year.
11.7$1,000 the first year and $1,000 the second
11.8year are for grants to the Minnesota State
11.9Poultry Association.
11.10$108,000 the first year and $108,000 the
11.11second year are for annual grants to the
11.12Minnesota Turf Seed Council for basic
11.13and applied research on: (1) the improved
11.14production of forage and turf seed related to
11.15new and improved varieties; and (2) native
11.16plants, including plant breeding, nutrient
11.17management, pest management, disease
11.18management, yield, and viability. The grant
11.19recipient may subcontract with a qualified
11.20third party for some or all of the basic or
11.21applied research.
11.22$500,000 the first year and $500,000 the
11.23second year are for grants to Second Harvest
11.24Heartland on behalf of Minnesota's six
11.25Second Harvest food banks for the purchase
11.26of milk for distribution to Minnesota's food
11.27shelves and other charitable organizations
11.28that are eligible to receive food from the food
11.29banks. Milk purchased under the grants must
11.30be acquired from Minnesota milk processors
11.31and based on low-cost bids. The milk must be
11.32allocated to each Second Harvest food bank
11.33serving Minnesota according to the formula
11.34used in the distribution of United States
11.35Department of Agriculture commodities
12.1under The Emergency Food Assistance
12.2Program (TEFAP). Second Harvest
12.3Heartland must submit quarterly reports
12.4to the commissioner on forms prescribed
12.5by the commissioner. The reports must
12.6include, but are not limited to, information
12.7on the expenditure of funds, the amount
12.8of milk purchased, and the organizations
12.9to which the milk was distributed. Second
12.10Harvest Heartland may enter into contracts
12.11or agreements with food banks for shared
12.12funding or reimbursement of the direct
12.13purchase of milk. Each food bank receiving
12.14money from this appropriation may use up to
12.15two percent of the grant for administrative
12.16expenses.
12.17$94,000 the first year and $94,000 the
12.18second year are for transfer to the Board of
12.19Trustees of the Minnesota State Colleges
12.20and Universities for statewide mental health
12.21counseling support to farm families and
12.22business operators through farm business
12.23management programs at Central Lakes
12.24College and Ridgewater College.
12.25$17,000 the first year and $17,000 the second
12.26year are for grants to the Minnesota State
12.27Horticultural Society.
12.28Notwithstanding Minnesota Statutes,
12.29section 18C.131, $800,000 the first year
12.30and $800,000 the second year are from
12.31the fertilizer inspection account in the
12.32agricultural fund for grants for fertilizer
12.33research as awarded by the Minnesota
12.34Agricultural Fertilizer Research and
12.35Education Council under Minnesota Statutes,
13.1section 18C.71. The amount appropriated in
13.2either fiscal year must not exceed 57 percent
13.3of the inspection fee revenue collected
13.4under Minnesota Statutes, section 18C.425,
13.5subdivision 6, during the previous fiscal
13.6year. No later than February 1, 2015, the
13.7commissioner shall report to the legislative
13.8committees with jurisdiction over agriculture
13.9finance. The report must include the progress
13.10and outcome of funded projects as well as
13.11the sentiment of the council concerning the
13.12need for additional research funds.

13.13
Sec. 4. BOARD OF ANIMAL HEALTH
$
4,869,000
$
4,901,000

13.14
13.15
Sec. 5. AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE
$
2,643,000
$
2,643,000
13.16Money in this appropriation is available for
13.17technical assistance and technology transfer
13.18to bioenergy crop producers and users.

13.19ARTICLE 2
13.20AGRICULTURE POLICY

13.21    Section 1. Minnesota Statutes 2012, section 17.03, subdivision 3, is amended to read:
13.22    Subd. 3. Cooperation with federal agencies. (a) The commissioner shall cooperate
13.23with the government of the United States, with financial agencies created to assist in the
13.24development of the agricultural resources of this state, and so far as practicable may use
13.25the facilities provided by the existing state departments and the various state and local
13.26organizations. This subdivision is intended to relate to every function and duty which
13.27devolves upon the commissioner.
13.28    (b) The commissioner may apply for, receive, and disburse federal funds made
13.29available to the state by federal law or regulation for any purpose related to the powers and
13.30duties of the commissioner. All money received by the commissioner under this paragraph
13.31shall be deposited in the state treasury and is appropriated to the commissioner for the
13.32purposes for which it was received. Money made available under this paragraph may
13.33be paid pursuant to applicable federal regulations and rate structures. Money received
14.1under this paragraph does not cancel and is available for expenditure according to federal
14.2law. The commissioner may contract with and enter into grant agreements with persons,
14.3organizations, educational institutions, firms, corporations, other state agencies, and any
14.4agency or instrumentality of the federal government to carry out agreements made with
14.5the federal government relating to the expenditure of money under this paragraph. Bid
14.6requirements under chapter 16C do not apply to contracts under this paragraph.

14.7    Sec. 2. Minnesota Statutes 2012, section 17.1015, is amended to read:
14.817.1015 PROMOTIONAL EXPENDITURES.
14.9In order to accomplish the purposes of section 17.101, the commissioner may
14.10participate jointly with private persons in appropriate programs and projects and may enter
14.11into contracts to carry out those programs and projects. The contracts may not include
14.12the acquisition of land or buildings and are not subject to the provisions of chapter 16C
14.13relating to competitive bidding.
14.14The commissioner may spend money appropriated for the purposes of section
14.1517.101 in the same manner that private persons, firms, corporations, and associations
14.16make expenditures for these purposes, and expenditures made pursuant to section 17.101
14.17for food, lodging, or travel are not governed by the travel rules of the commissioner of
14.18management and budget.

14.19    Sec. 3. Minnesota Statutes 2012, section 17.118, subdivision 2, is amended to read:
14.20    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this
14.21subdivision have the meanings given them.
14.22    (b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed
14.23cervidae, ratitae, bison, sheep, horses, and llamas.
14.24    (c) "Qualifying expenditures" means the amount spent for:
14.25    (1) the acquisition, construction, or improvement of buildings or facilities for the
14.26production of livestock or livestock products;
14.27    (2) the development of pasture for use by livestock including, but not limited to, the
14.28acquisition, development, or improvement of:
14.29    (i) lanes used by livestock that connect pastures to a central location;
14.30    (ii) watering systems for livestock on pasture including water lines, booster pumps,
14.31and well installations;
14.32    (iii) livestock stream crossing stabilization; and
14.33    (iv) fences; or
15.1    (3) the acquisition of equipment for livestock housing, confinement, feeding, and
15.2waste management including, but not limited to, the following:
15.3    (i) freestall barns;
15.4    (ii) watering facilities;
15.5    (iii) feed storage and handling equipment;
15.6    (iv) milking parlors;
15.7    (v) robotic equipment;
15.8    (vi) scales;
15.9    (vii) milk storage and cooling facilities;
15.10    (viii) bulk tanks;
15.11    (ix) computer hardware and software and associated equipment used to monitor
15.12the productivity and feeding of livestock;
15.13    (x) manure pumping and storage facilities;
15.14    (xi) swine farrowing facilities;
15.15    (xii) swine and cattle finishing barns;
15.16    (xiii) calving facilities;
15.17    (xiv) digesters;
15.18    (xv) equipment used to produce energy;
15.19    (xvi) on-farm processing facilities equipment;
15.20    (xvii) fences; and
15.21    (xviii) livestock pens and corrals and sorting, restraining, and loading chutes.
15.22    Except for qualifying pasture development expenditures under clause (2), qualifying
15.23expenditures only include amounts that are allowed to be capitalized and deducted under
15.24either section 167 or 179 of the Internal Revenue Code in computing federal taxable
15.25income. Qualifying expenditures do not include an amount paid to refinance existing debt.
15.26    (d) "Qualifying period" means, for a grant awarded during a fiscal year, that full
15.27calendar year of which the first six months precede the first day of the current fiscal year. For
15.28example, an eligible person who makes qualifying expenditures during calendar year 2008
15.29is eligible to receive a livestock investment grant between July 1, 2008, and June 30, 2009.

15.30    Sec. 4. [17.9891] PURPOSE.
15.31The commissioner, in consultation with the commissioner of natural resources,
15.32commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
15.33may implement a Minnesota agricultural water quality certification program whereby a
15.34producer who demonstrates practices and management sufficient to protect water quality
15.35is certified for up to ten years and presumed to be contributing the producer's share of
16.1any targeted reduction of water pollutants during the certification period. The program
16.2is voluntary. The program will first be piloted in selected watersheds across the state,
16.3until such time as the commissioner, in consultation with the commissioner of natural
16.4resources, commissioner of the Pollution Control Agency, and Board of Water and Soil
16.5Resources, determines the program is ready for expansion.

16.6    Sec. 5. [17.9892] DEFINITIONS.
16.7    Subdivision 1. Application. The definitions in this section apply to sections
16.817.9891 to 17.993.
16.9    Subd. 2. Certification. "Certification" means a producer has demonstrated
16.10compliance with all applicable environmental rules and statutes for all of the producer's
16.11owned and rented agricultural land and has achieved a satisfactory score through the
16.12certification instrument as verified by a certifying agent.
16.13    Subd. 3. Certifying agent. "Certifying agent" means a person who is authorized
16.14by the commissioner to assess producers to determine whether a producer satisfies the
16.15standards of the program.
16.16    Subd. 4. Effective control. "Effective control" means possession of land by
16.17ownership, written lease, or other legal agreement and authority to act as decision
16.18maker for the day-to-day management of the operation at the time the producer achieves
16.19certification and for the required certification period.
16.20    Subd. 5. Eligible land. "Eligible land" means all acres of a producer's agricultural
16.21operation, whether contiguous or not, that are under the effective control of the producer
16.22at the time the producer enters into the program and that the producer operates with
16.23equipment, labor, and management.
16.24    Subd. 6. Program. "Program" means the Minnesota agricultural water quality
16.25certification program.
16.26    Subd. 7. Technical assistance. "Technical assistance" means professional, advisory,
16.27or cost-share assistance provided to individuals in order to achieve certification.

16.28    Sec. 6. [17.9893] CERTIFICATION INSTRUMENT.
16.29The commissioner, in consultation with the commissioner of natural resources,
16.30commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
16.31shall develop an analytical instrument to assess the water quality practices and
16.32management of agricultural operations. This instrument shall be used to certify that the
16.33water quality practices and management of an agricultural operation are consistent with
17.1state water quality goals and standards. The commissioner shall define a satisfactory score
17.2for certification purposes. The certification instrument tool shall:
17.3(1) integrate applicable existing regulatory requirements;
17.4(2) utilize technology and prioritize ease of use;
17.5(3) utilize a water quality index or score applicable to the landscape;
17.6(4) incorporate a process for updates and revisions as practices, management, and
17.7technology changes become established and approved; and
17.8(5) comprehensively address water quality impacts.

17.9    Sec. 7. [17.9894] CERTIFYING AGENT LICENSE.
17.10    Subdivision 1. License. A person who offers certification services to producers
17.11as part of the program must satisfy all criteria in subdivision 2 and be licensed by
17.12the commissioner. A certifying agent is ineligible to provide certification services
17.13to any producer to whom the certifying agent has also provided technical assistance.
17.14Notwithstanding section 16A.1283, the commissioner may set license fees.
17.15    Subd. 2. Certifying agent requirements. In order to be licensed as a certifying
17.16agent, a person must:
17.17(1) be an agricultural conservation professional employed by the state of Minnesota,
17.18a soil and water conservation district, or the Natural Resources Conservation Service or a
17.19Minnesota certified crop advisor as recognized by the American Society of Agronomy;
17.20(2) have passed a comprehensive exam, as set by the commissioner, evaluating
17.21knowledge of water quality, soil health, best farm management techniques, and the
17.22certification instrument; and
17.23(3) maintain continuing education requirements as set by the commissioner.

17.24    Sec. 8. [17.9895] DUTIES OF A CERTIFYING AGENT.
17.25    Subdivision 1. Duties. A certifying agent shall conduct a formal certification
17.26assessment utilizing the certification instrument to determine whether a producer meets
17.27program criteria. If a producer satisfies all requirements, the certifying agent shall notify
17.28the commissioner of the producer's eligibility and request that the commissioner issue a
17.29certificate. All records and documents used in the assessment shall be compiled by the
17.30certifying agent and submitted to the commissioner.
17.31    Subd. 2. Violations. (a) In the event a certifying agent violates any provision of
17.32sections 17.9891 to 17.993 or an order of the commissioner, the commissioner may issue a
17.33written warning or a correction order and may suspend or revoke a license.
18.1(b) If the commissioner suspends or revokes a license, the certifying agent has ten
18.2days from the date of suspension or revocation to appeal. If a certifying agent appeals, the
18.3commissioner shall hold an administrative hearing within 30 days of the suspension or
18.4revocation of the license, or longer by agreement of the parties, to determine whether the
18.5license is revoked or suspended. The commissioner shall issue an opinion within 30 days.
18.6If a person notifies the commissioner that the person intends to contest the commissioner's
18.7opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with
18.8the applicable provisions of chapter 14 for hearings in contested cases.

18.9    Sec. 9. [17.9896] CERTIFICATION PROCEDURES.
18.10    Subdivision 1. Producer duties. A producer who seeks certification of eligible land
18.11shall conduct an initial assessment using the certification instrument, obtain technical
18.12assistance if necessary to achieve a satisfactory score on the certification instrument, and
18.13apply for certification from a licensed certifying agent.
18.14    Subd. 2. Additional land. Once certified, if a producer obtains effective control
18.15of additional agricultural land, the producer must notify a certifying agent and obtain
18.16certification of the additional land within one year in order to retain the producer's original
18.17certification.
18.18    Subd. 3. Violations. (a) The commissioner may revoke a certification if the
18.19producer fails to obtain certification on any additional land for which the producer obtains
18.20effective control.
18.21(b) The commissioner may revoke a certification and seek reimbursement of any
18.22monetary benefit a producer may have received due to certification from a producer who
18.23fails to maintain certification criteria.
18.24(c) If the commissioner revokes a certification, the producer has ten days from the
18.25date of suspension or revocation to appeal. If a producer appeals, the commissioner shall
18.26hold an administrative hearing within 30 days of the suspension or revocation of the
18.27certification, or longer by agreement of the parties, to determine whether the certification
18.28is revoked or suspended. The commissioner shall issue an opinion within 30 days. If the
18.29producer notifies the commissioner that the producer intends to contest the commissioner's
18.30opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with
18.31the applicable provisions of chapter 14 for hearings in contested cases.

18.32    Sec. 10. [17.9897] CERTIFICATION CERTAINTY.
18.33(a) Once a producer is certified, the producer:
19.1(1) retains certification for up to ten years from the date of certification if the
19.2producer complies with the certification agreement, even if the producer does not comply
19.3with new state water protection laws or rules that take effect during the certification period;
19.4(2) is presumed to be meeting the producer's contribution to any targeted reduction
19.5of pollutants during the certification period;
19.6(3) is required to continue implementation of practices that maintain the producer's
19.7certification; and
19.8(4) is required to retain all records pertaining to certification.
19.9(b) Paragraph (a) does not preclude enforcement of a local rule or ordinance by a
19.10local unit of government.

19.11    Sec. 11. [17.9898] AUDITS.
19.12The commissioner shall perform random audits of producers and certifying agents to
19.13ensure compliance with the program. All producers and certifying agents shall cooperate
19.14with the commissioner during these audits, and provide all relevant documents to the
19.15commissioner for inspection and copying. Any delay, obstruction, or refusal to cooperate
19.16with the commissioner's audit or falsification of or failure to provide required data or
19.17information is a violation subject to the provisions of section 17.9895, subdivision 2, or
19.1817.9896, subdivision 3.

19.19    Sec. 12. [17.9899] DATA.
19.20All data collected under the program that identifies a producer or a producer's
19.21location are considered nonpublic data as defined in section 13.02, subdivision 9, or
19.22private data on individuals as defined in section 13.02, subdivision 12. The commissioner
19.23shall make available summary data of program outcomes on data classified as private
19.24or nonpublic under this section.

19.25    Sec. 13. [17.991] RULEMAKING.
19.26The commissioner may adopt rules to implement the program.

19.27    Sec. 14. [17.992] REPORTS.
19.28The commissioner, in consultation with the commissioner of natural resources,
19.29commissioner of the Pollution Control Agency, and Board of Water and Soil Resources,
19.30shall issue a biennial report to the chairs and ranking minority members of the legislative
19.31committees with jurisdiction over agricultural policy on the status of the program.

20.1    Sec. 15. [17.993] FINANCIAL ASSISTANCE.
20.2The commissioner may use contributions from gifts or other state accounts, provided
20.3that the purpose of the expenditure is consistent with the purpose of the accounts, for
20.4grants, loans, or other financial assistance.

20.5    Sec. 16. Minnesota Statutes 2012, section 18.77, subdivision 3, is amended to read:
20.6    Subd. 3. Control. "Control" means to destroy all or part of the aboveground
20.7growth of noxious weeds manage or prevent the maturation and spread of propagating
20.8parts of noxious weeds from one area to another by a lawful method that does not cause
20.9unreasonable adverse effects on the environment as defined in section 18B.01, subdivision
20.1031
, and prevents the maturation and spread of noxious weed propagating parts from one
20.11area to another.

20.12    Sec. 17. Minnesota Statutes 2012, section 18.77, subdivision 4, is amended to read:
20.13    Subd. 4. Eradicate. "Eradicate" means to destroy the aboveground growth and the
20.14roots and belowground plant parts of noxious weeds by a lawful method that, which
20.15 prevents the maturation and spread of noxious weed propagating parts from one area
20.16to another.

20.17    Sec. 18. Minnesota Statutes 2012, section 18.77, subdivision 10, is amended to read:
20.18    Subd. 10. Permanent pasture, hay meadow, woodlot, and or other noncrop
20.19area. "Permanent pasture, hay meadow, woodlot, and or other noncrop area" means an
20.20area of predominantly native or seeded perennial plants that can be used for grazing or hay
20.21purposes but is not harvested on a regular basis and is not considered to be a growing crop.

20.22    Sec. 19. Minnesota Statutes 2012, section 18.77, subdivision 12, is amended to read:
20.23    Subd. 12. Propagating parts. "Propagating parts" means all plant parts, including
20.24seeds, that are capable of producing new plants.

20.25    Sec. 20. [18.771] NOXIOUS WEED CATEGORIES.
20.26(a) For purposes of this section, noxious weed category includes each of the
20.27following categories.
20.28(b) "Prohibited noxious weeds" includes noxious weeds that must be controlled or
20.29eradicated on all lands within the state. Transportation of a prohibited noxious weed's
20.30propagating parts is restricted by permit except as allowed by section 18.82. Prohibited
21.1noxious weeds may not be sold or propagated in Minnesota. There are two regulatory
21.2listings for prohibited noxious weeds in Minnesota:
21.3(1) the noxious weed eradicate list is established. Prohibited noxious weeds placed
21.4on the noxious weed eradicate list are plants that are not currently known to be present in
21.5Minnesota or are not widely established. These species must be eradicated; and
21.6(2) the noxious weed control list is established. Prohibited noxious weeds placed on
21.7the noxious weed control list are plants that are already established throughout Minnesota
21.8or regions of the state. Species on this list must at least be controlled.
21.9(c) "Restricted noxious weeds" includes noxious weeds that are widely distributed
21.10in Minnesota, but for which the only feasible means of control is to prevent their spread
21.11by prohibiting the importation, sale, and transportation of their propagating parts in the
21.12state, except as allowed by section 18.82.
21.13(d) "Specially regulated plants" includes noxious weeds that may be native
21.14species or have demonstrated economic value, but also have the potential to cause harm
21.15in noncontrolled environments. Plants designated as specially regulated have been
21.16determined to pose ecological, economical, or human or animal health concerns. Species
21.17specific management plans or rules that define the use and management requirements
21.18for these plants must be developed by the commissioner of agriculture for each plant
21.19designated as specially regulated. The commissioner must also take measures to minimize
21.20the potential for harm caused by these plants.
21.21(e) "County noxious weeds" includes noxious weeds that are designated by
21.22individual county boards to be enforced as prohibited noxious weeds within the county's
21.23jurisdiction and must be approved by the commissioner of agriculture, in consultation with
21.24the Noxious Weed Advisory Committee. Each county board must submit newly proposed
21.25county noxious weeds to the commissioner of agriculture for review. Approved county
21.26noxious weeds shall also be posted with the county's general weed notice prior to May 15
21.27each year. Counties are solely responsible for developing county noxious weed lists and
21.28their enforcement.

21.29    Sec. 21. Minnesota Statutes 2012, section 18.78, subdivision 3, is amended to read:
21.30    Subd. 3. Cooperative Weed control agreement. The commissioner, municipality,
21.31or county agricultural inspector or county-designated employee may enter into a
21.32cooperative weed control agreement with a landowner or weed management area
21.33group to establish a mutually agreed-upon noxious weed management plan for up to
21.34three years duration, whereby a noxious weed problem will be controlled without
22.1additional enforcement action. If a property owner fails to comply with the noxious weed
22.2management plan, an individual notice may be served.

22.3    Sec. 22. Minnesota Statutes 2012, section 18.79, subdivision 6, is amended to read:
22.4    Subd. 6. Training for control or eradication of noxious weeds. The commissioner
22.5shall conduct initial training considered necessary for inspectors and county-designated
22.6employees in the enforcement of the Minnesota Noxious Weed Law. The director of the
22.7 University of Minnesota Extension Service may conduct educational programs for the
22.8general public that will aid compliance with the Minnesota Noxious Weed Law. Upon
22.9request, the commissioner may provide information and other technical assistance to the
22.10county agricultural inspector or county-designated employee to aid in the performance of
22.11responsibilities specified by the county board under section 18.81, subdivisions 1a and 1b.

22.12    Sec. 23. Minnesota Statutes 2012, section 18.79, subdivision 13, is amended to read:
22.13    Subd. 13. Noxious weed designation. The commissioner, in consultation with the
22.14Noxious Weed Advisory Committee, shall determine which plants are noxious weeds
22.15subject to control regulation under sections 18.76 to 18.91. The commissioner shall
22.16prepare, publish, and revise as necessary, but at least once every three years, a list of
22.17noxious weeds and their designated classification. The list must be distributed to the public
22.18by the commissioner who may request the help of the University of Minnesota Extension,
22.19the county agricultural inspectors, and any other organization the commissioner considers
22.20appropriate to assist in the distribution. The commissioner may, in consultation with
22.21the Noxious Weed Advisory Committee, accept and consider noxious weed designation
22.22petitions from Minnesota citizens or Minnesota organizations or associations.

22.23    Sec. 24. Minnesota Statutes 2012, section 18.82, subdivision 1, is amended to read:
22.24    Subdivision 1. Permits. Except as provided in section 21.74, if a person wants to
22.25transport along a public highway materials or equipment containing the propagating parts of
22.26weeds designated as noxious by the commissioner, the person must secure a written permit
22.27for transportation of the material or equipment from an inspector or county-designated
22.28employee. Inspectors or county-designated employees may issue permits to persons
22.29residing or operating within their jurisdiction. If the noxious weed propagating parts are
22.30removed from materials and equipment or devitalized before being transported, a permit is
22.31not needed A permit is not required for the transport of noxious weeds for the purpose
22.32of destroying propagating parts at a Department of Agriculture-approved disposal site.
23.1Anyone transporting noxious weed propagating parts for this purpose shall ensure that all
23.2materials are contained in a manner that prevents escape during transport.

23.3    Sec. 25. Minnesota Statutes 2012, section 18.91, subdivision 1, is amended to read:
23.4    Subdivision 1. Duties. The commissioner shall consult with the Noxious Weed
23.5Advisory Committee to advise the commissioner concerning responsibilities under
23.6the noxious weed control program. The committee shall also evaluate species for
23.7invasiveness, difficulty of control, cost of control, benefits, and amount of injury caused
23.8by them. For each species evaluated, the committee shall recommend to the commissioner
23.9on which noxious weed list or lists, if any, the species should be placed. Species currently
23.10 designated as prohibited or restricted noxious weeds or specially regulated plants must
23.11be reevaluated every three years for a recommendation on whether or not they need to
23.12remain on the noxious weed lists. The committee shall also advise the commissioner on
23.13the implementation of the Minnesota Noxious Weed Law and assist the commissioner in
23.14the development of management criteria for each noxious weed category. Members of
23.15the committee are not entitled to reimbursement of expenses nor payment of per diem.
23.16Members shall serve two-year terms with subsequent reappointment by the commissioner.

23.17    Sec. 26. Minnesota Statutes 2012, section 18.91, subdivision 2, is amended to read:
23.18    Subd. 2. Membership. The commissioner shall appoint members, which shall
23.19include representatives from the following:
23.20(1) horticultural science, agronomy, and forestry at the University of Minnesota;
23.21(2) the nursery and landscape industry in Minnesota;
23.22(3) the seed industry in Minnesota;
23.23(4) the Department of Agriculture;
23.24(5) the Department of Natural Resources;
23.25(6) a conservation organization;
23.26(7) an environmental organization;
23.27(8) at least two farm organizations;
23.28(9) the county agricultural inspectors;
23.29(10) city, township, and county governments;
23.30(11) the Department of Transportation;
23.31(12) the University of Minnesota Extension;
23.32(13) the timber and forestry industry in Minnesota;
23.33(14) the Board of Water and Soil Resources; and
23.34(15) soil and water conservation districts.;
24.1(16) Minnesota Association of County Land Commissioners; and
24.2(17) members as needed.

24.3    Sec. 27. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
24.4to read:
24.5    Subd. 4a. Bulk pesticide storage facility. "Bulk pesticide storage facility" means a
24.6facility that is required to have a permit under section 18B.14.

24.7    Sec. 28. Minnesota Statutes 2012, section 18B.065, subdivision 2a, is amended to read:
24.8    Subd. 2a. Disposal site requirement. (a) For agricultural waste pesticides, the
24.9commissioner must designate a place in each county of the state that is available at least
24.10every other year for persons to dispose of unused portions of agricultural pesticides. The
24.11commissioner shall consult with the person responsible for solid waste management
24.12and disposal in each county to determine an appropriate location and to advertise each
24.13collection event. The commissioner may provide a collection opportunity in a county
24.14more frequently if the commissioner determines that a collection is warranted.
24.15    (b) For nonagricultural waste pesticides, the commissioner must provide a disposal
24.16opportunity each year in each county or enter into a contract with a group of counties
24.17under a joint powers agreement or contract for household hazardous waste disposal.
24.18(c) As provided under subdivision 7, the commissioner may enter into cooperative
24.19agreements with local units of government to provide the collections required under
24.20paragraph (a) or (b) and shall provide a local unit of government, as part of the cooperative
24.21agreement, with funding for reasonable costs incurred including, but not limited to, related
24.22supplies, transportation, advertising, and disposal costs as well as reasonable overhead
24.23costs.
24.24    (d) A person who collects waste pesticide under this section shall, on a form
24.25provided or in a method approved by the commissioner, record information on each
24.26waste pesticide product collected including, but not limited to, the quantity collected
24.27and either the product name and its active ingredient or ingredients or the United States
24.28Environmental Protection Agency registration number. The person must submit this
24.29information to the commissioner at least annually by January 30.
24.30    (e) Notwithstanding the recording and reporting requirements of paragraph (d),
24.31persons are not required to record or report agricultural or nonagricultural waste pesticide
24.32collected in the remainder of 2013, 2014, and 2015. The commissioner shall analyze
24.33existing collection data to identify trends that will inform future collection strategies to
24.34better meet the needs and nature of current waste pesticide streams. By January 15, 2015,
25.1the commissioner shall report analysis, recommendations, and proposed policy changes to
25.2this program to legislative committees with jurisdiction over agriculture finance and policy.
25.3EFFECTIVE DATE.This section is effective the day following final enactment
25.4and applies to waste pesticide collected on or after that date through the end of 2015.

25.5    Sec. 29. Minnesota Statutes 2012, section 18B.07, subdivision 4, is amended to read:
25.6    Subd. 4. Pesticide storage safeguards at application sites. A person may not
25.7allow a pesticide, rinsate, or unrinsed pesticide container to be stored, kept, or to remain in
25.8or on any site without safeguards adequate to prevent an incident. Pesticides may not be
25.9stored in any location with an open drain.

25.10    Sec. 30. Minnesota Statutes 2012, section 18B.07, subdivision 5, is amended to read:
25.11    Subd. 5. Use of public water supplies for filling application equipment. (a) A
25.12person may not fill pesticide application equipment directly from a public water supply,
25.13as defined in section 144.382, or from public waters, as defined in section 103G.005,
25.14subdivision 15, unless the outlet from the public equipment or water supply is equipped
25.15with a backflow prevention device that complies with the Minnesota Plumbing Code
25.16under Minnesota Rules, parts 4715.2000 to 4715.2280.
25.17(b) Cross connections between a water supply used for filling pesticide application
25.18equipment are prohibited.
25.19(c) This subdivision does not apply to permitted applications of aquatic pesticides to
25.20public waters.

25.21    Sec. 31. Minnesota Statutes 2012, section 18B.07, subdivision 7, is amended to read:
25.22    Subd. 7. Cleaning equipment in or near surface water Pesticide handling
25.23restrictions. (a) A person may not: fill or clean pesticide application equipment where
25.24pesticides or materials contaminated with pesticides could enter ditches, surface water,
25.25groundwater, wells, drains, or sewers. For wells, the setbacks established in Minnesota
25.26Rules, part 4725.4450, apply.
25.27(1) clean pesticide application equipment in surface waters of the state; or
25.28(2) fill or clean pesticide application equipment adjacent to surface waters,
25.29ditches, or wells where, because of the slope or other conditions, pesticides or materials
25.30contaminated with pesticides could enter or contaminate the surface waters, groundwater,
25.31or wells, as a result of overflow, leakage, or other causes.
25.32(b) This subdivision does not apply to permitted application of aquatic pesticides to
25.33public waters.

26.1    Sec. 32. Minnesota Statutes 2012, section 18B.26, subdivision 3, is amended to read:
26.2    Subd. 3. Registration application and gross sales fee. (a) For an agricultural
26.3pesticide, a registrant shall pay an annual registration application fee for each agricultural
26.4pesticide of $350. The fee is due by December 31 preceding the year for which the
26.5application for registration is made. The fee is nonrefundable.
26.6(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual
26.7registration application fee for each nonagricultural pesticide of $350. The fee is due by
26.8December 31 preceding the year for which the application for registration is made. The
26.9fee is nonrefundable. The registrant of a nonagricultural pesticide shall pay, in addition to
26.10the $350 minimum fee, a fee of 0.5 percent of annual gross sales of the nonagricultural
26.11pesticide in the state and the annual gross sales of the nonagricultural pesticide sold into
26.12the state for use in this state. The commissioner may not assess a fee under this paragraph
26.13if the amount due based on percent of annual gross sales is less than $10 No fee is required
26.14if the fee due amount based on percent of annual gross sales of a nonagricultural pesticide
26.15is less than $10. The registrant shall secure sufficient sales information of nonagricultural
26.16pesticides distributed into this state from distributors and dealers, regardless of distributor
26.17location, to make a determination. Sales of nonagricultural pesticides in this state and
26.18sales of nonagricultural pesticides for use in this state by out-of-state distributors are not
26.19exempt and must be included in the registrant's annual report, as required under paragraph
26.20(g), and fees shall be paid by the registrant based upon those reported sales. Sales of
26.21nonagricultural pesticides in the state for use outside of the state are exempt from the
26.22gross sales fee in this paragraph if the registrant properly documents the sale location and
26.23distributors. A registrant paying more than the minimum fee shall pay the balance due by
26.24March 1 based on the gross sales of the nonagricultural pesticide by the registrant for the
26.25preceding calendar year. A pesticide determined by the commissioner to be a sanitizer or
26.26disinfectant is exempt from the gross sales fee.
26.27(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed
26.28pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the
26.29agricultural pesticide in the state and the annual gross sales of the agricultural pesticide
26.30sold into the state for use in this state.
26.31(d) In those cases where a registrant first sells an agricultural pesticide in or into the
26.32state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer
26.33license and is responsible for payment of the annual gross sales fee under paragraph (c),
26.34record keeping under paragraph (i), and all other requirements of section 18B.316.
26.35(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013,
26.36by the commissioner on the registration and sale of pesticides is less than $6,600,000, the
27.1commissioner, after a public hearing, may increase proportionally the pesticide sales and
27.2product registration fees under this chapter by the amount necessary to ensure this level
27.3of revenue is achieved. The authority under this section expires on June 30, 2014. The
27.4commissioner shall report any fee increases under this paragraph 60 days before the fee
27.5change is effective to the senate and house of representatives agriculture budget divisions.
27.6    (f) An additional fee of 50 percent of the registration application fee must be paid by
27.7the applicant for each pesticide to be registered if the application is a renewal application
27.8that is submitted after December 31.
27.9    (g) A registrant must annually report to the commissioner the amount, type and
27.10annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or
27.11otherwise distributed in the state. The report shall be filed by March 1 for the previous
27.12year's registration. The commissioner shall specify the form of the report or approve
27.13the method for submittal of the report and may require additional information deemed
27.14necessary to determine the amount and type of nonagricultural pesticide annually
27.15distributed in the state. The information required shall include the brand name, United
27.16States Environmental Protection Agency registration number, and amount of each
27.17nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but
27.18the information collected, if made public, shall be reported in a manner which does not
27.19identify a specific brand name in the report.
27.20(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually
27.21report to the commissioner the amount, type, and annual gross sales of each registered
27.22agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the
27.23state for use in the state. The report must be filed by January 31 for the previous year's
27.24sales. The commissioner shall specify the form, contents, and approved electronic method
27.25for submittal of the report and may require additional information deemed necessary to
27.26determine the amount and type of agricultural pesticide annually distributed within the
27.27state or into the state. The information required must include the brand name, United States
27.28Environmental Protection Agency registration number, and amount of each agricultural
27.29pesticide sold, offered for sale, or otherwise distributed in the state or into the state.
27.30(i) A person who registers a pesticide with the commissioner under paragraph (b),
27.31or a registrant under paragraph (d), shall keep accurate records for five years detailing
27.32all distribution or sales transactions into the state or in the state and subject to a fee and
27.33surcharge under this section.
27.34(j) The records are subject to inspection, copying, and audit by the commissioner
27.35and must clearly demonstrate proof of payment of all applicable fees and surcharges
27.36for each registered pesticide product sold for use in this state. A person who is located
28.1outside of this state must maintain and make available records required by this subdivision
28.2in this state or pay all costs incurred by the commissioner in the inspecting, copying, or
28.3auditing of the records.
28.4(k) The commissioner may adopt by rule regulations that require persons subject
28.5to audit under this section to provide information determined by the commissioner to be
28.6necessary to enable the commissioner to perform the audit.
28.7    (l) A registrant who is required to pay more than the minimum fee for any pesticide
28.8under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee
28.9paid after March 1 in the year for which the license is to be issued.

28.10    Sec. 33. Minnesota Statutes 2012, section 18B.305, is amended to read:
28.1118B.305 PESTICIDE EDUCATION AND TRAINING.
28.12    Subdivision 1. Education and training. (a) The commissioner, as the lead agency,
28.13 shall develop, implement or approve, and evaluate, in conjunction consultation with the
28.14 University of Minnesota Extension Service, the Minnesota State Colleges and Universities
28.15system, and other educational institutions, innovative educational and training programs
28.16addressing pesticide concerns including:
28.17(1) water quality protection;
28.18(2) endangered species protection;
28.19(3) minimizing pesticide residues in food and water;
28.20(4) worker protection and applicator safety;
28.21(5) chronic toxicity;
28.22(6) integrated pest management and pest resistance; and
28.23(7) pesticide disposal;
28.24(8) pesticide drift;
28.25(9) relevant laws including pesticide labels and labeling and state and federal rules
28.26and regulations; and
28.27(10) current science and technology updates.
28.28(b) The commissioner shall appoint educational planning committees which must
28.29include representatives of industry and applicators.
28.30(c) Specific current regulatory concerns must be discussed and, if appropriate,
28.31incorporated into each training session. Relevant changes to pesticide product labels or
28.32labeling or state and federal rules and regulations may be included.
28.33(d) The commissioner may approve programs from private industry, higher
28.34education institutions, and nonprofit organizations that meet minimum requirements for
28.35education, training, and certification.
29.1    Subd. 2. Training manual and examination development. The commissioner,
29.2in conjunction with the University of Minnesota Extension Service and other higher
29.3education institutions, shall continually revise and update pesticide applicator training
29.4manuals and examinations. The manuals and examinations must be written to meet or
29.5exceed the minimum standards required by the United States Environmental Protection
29.6Agency and pertinent state specific information. Questions in the examinations must be
29.7determined by the commissioner in consultation with other responsible agencies. Manuals
29.8and examinations must include pesticide management practices that discuss prevention of
29.9pesticide occurrence in groundwaters groundwater and surface water of the state.

29.10    Sec. 34. Minnesota Statutes 2012, section 18B.316, subdivision 1, is amended to read:
29.11    Subdivision 1. Requirement. (a) A person must not distribute offer for sale or sell
29.12an agricultural pesticide in the state or into the state without first obtaining an agricultural
29.13pesticide dealer license.
29.14(b) Each location or place of business from which an agricultural pesticide is
29.15distributed offered for sale or sold in the state or into the state is required to have a
29.16separate agricultural pesticide dealer license.
29.17(c) A person who is a licensed pesticide dealer under section 18B.31 is not required
29.18to also be licensed under this subdivision.

29.19    Sec. 35. Minnesota Statutes 2012, section 18B.316, subdivision 3, is amended to read:
29.20    Subd. 3. Resident agent. A person required to be licensed under subdivisions 1
29.21and 2, or a person licensed as a pesticide dealer pursuant to section 18B.31 and who
29.22operates from a location or place of business outside the state and who distributes offers
29.23for sale or sells an agricultural pesticide into the state, must continuously maintain in
29.24this state the following:
29.25(1) a registered office; and
29.26(2) a registered agent, who may be either a resident of this state whose business
29.27office or residence is identical with the registered office under clause (1), a domestic
29.28corporation or limited liability company, or a foreign corporation of limited liability
29.29company authorized to transact business in this state and having a business office identical
29.30with the registered office.
29.31A person licensed under this section or section 18B.31 shall annually file with the
29.32commissioner, either at the time of initial licensing or as part of license renewal, the name,
29.33address, telephone number, and e-mail address of the licensee's registered agent.
30.1For licensees under section 18B.31 who are located in the state, the licensee is
30.2the registered agent.

30.3    Sec. 36. Minnesota Statutes 2012, section 18B.316, subdivision 4, is amended to read:
30.4    Subd. 4. Responsibility. The resident agent is responsible for the acts of a licensed
30.5agricultural pesticide dealer, or of a licensed pesticide dealer under section 18B.31 who
30.6operates from a location or place of business outside the state and who distributes offers
30.7for sale or sells an agricultural pesticide into the state, as well as the acts of the employees
30.8of those licensees.

30.9    Sec. 37. Minnesota Statutes 2012, section 18B.316, subdivision 8, is amended to read:
30.10    Subd. 8. Report of sales and payment to commissioner. A person who is an
30.11agricultural pesticide dealer, or is a licensed pesticide dealer under section 18B.31, who
30.12distributes offers for sale or sells an agricultural pesticide in or into the state, and a
30.13pesticide registrant pursuant to section 18B.26, subdivision 3, paragraph (d), shall no
30.14later than January 31 of each year report and pay applicable fees on annual gross sales
30.15of agricultural pesticides to the commissioner pursuant to requirements under section
30.1618B.26, subdivision 3 , paragraphs (c) and (h).

30.17    Sec. 38. Minnesota Statutes 2012, section 18B.316, subdivision 9, is amended to read:
30.18    Subd. 9. Application. (a) A person must apply to the commissioner for an
30.19agricultural pesticide dealer license on forms and in a manner approved by the
30.20commissioner.
30.21(b) The applicant must be the person in charge of each location or place of business
30.22from which agricultural pesticides are distributed offered for sale or sold in or into the state.
30.23(c) The commissioner may require that the applicant provide information regarding
30.24the applicant's proposed operations and other information considered pertinent by the
30.25commissioner.
30.26(d) The commissioner may require additional demonstration of licensee qualification
30.27if the licensee has had a license suspended or revoked, or has otherwise had a history of
30.28violations in another state or violations of this chapter.
30.29(e) A licensed agricultural pesticide dealer who changes the dealer's address or place
30.30of business must immediately notify the commissioner of the change.
30.31(f) Beginning January 1, 2011, an application for renewal of an agricultural pesticide
30.32dealer license is complete only when a report and any applicable payment of fees under
30.33subdivision 8 are received by the commissioner.

31.1    Sec. 39. Minnesota Statutes 2012, section 18B.37, subdivision 4, is amended to read:
31.2    Subd. 4. Storage, handling, Incident response, and disposal plan. A pesticide
31.3dealer, agricultural pesticide dealer, or a commercial, noncommercial, or structural pest
31.4control applicator or the business that the applicator is employed by business must develop
31.5and maintain a an incident response plan that describes its pesticide storage, handling,
31.6incident response, and disposal practices the actions that will be taken to prevent and
31.7respond to pesticide incidents. The plan must contain the same information as forms
31.8provided by the commissioner. The plan must be kept at a principal business site or location
31.9within this state and must be submitted to the commissioner upon request on forms provided
31.10by the commissioner. The plan must be available for inspection by the commissioner.

31.11    Sec. 40. Minnesota Statutes 2012, section 18C.430, is amended to read:
31.1218C.430 COMMERCIAL ANIMAL WASTE TECHNICIAN.
31.13    Subdivision 1. Requirement. (a) Except as provided in paragraph (c), after March
31.141, 2000, A person may not manage or apply animal wastes to the land for hire without a
31.15valid commercial animal waste technician license. This section does not apply to a person
31.16managing or applying animal waste on land managed by the person's employer.:
31.17(1) without a valid commercial animal waste technician applicator license;
31.18(2) without a valid commercial animal waste technician site manager license; or
31.19(3) as a sole proprietorship, company, partnership, or corporation unless a
31.20commercial animal waste technician company license is held and a commercial animal
31.21waste technical site manager is employed by the entity.
31.22(b) A person managing or applying animal wastes for hire must have a valid
31.23license identification card when managing or applying animal wastes for hire and must
31.24display it upon demand by an authorized representative of the commissioner or a law
31.25enforcement officer. The commissioner shall prescribe the information required on the
31.26license identification card.
31.27(c) A person who is not a licensed commercial animal waste technician who has had
31.28at least two hours of training or experience in animal waste management may manage
31.29or apply animal waste for hire under the supervision of a commercial animal waste
31.30technician. A commercial animal waste technician applicator must have a minimum of
31.31two hours of certification training in animal waste management and may only manage or
31.32apply animal waste for hire under the supervision of a commercial animal waste technician
31.33site manager. The commissioner shall prescribe the conditions of the supervision and the
31.34form and format required on the certification training.
32.1(d) This section does not apply to a person managing or applying animal waste on
32.2land managed by the person's employer.
32.3    Subd. 2. Responsibility. A person required to be licensed under this section who
32.4performs animal waste management or application for hire or who employs a person to
32.5perform animal waste management or application for compensation is responsible for
32.6proper management or application of the animal wastes.
32.7    Subd. 3. License. (a) A commercial animal waste technician license, including
32.8applicator, site manager, and company:
32.9(1) is valid for three years one year and expires on December 31 of the third year for
32.10which it is issued, unless suspended or revoked before that date;
32.11(2) is not transferable to another person; and
32.12(3) must be prominently displayed to the public in the commercial animal waste
32.13technician's place of business.
32.14(b) The commercial animal waste technician company license number assigned by
32.15the commissioner must appear on the application equipment when a person manages
32.16or applies animal waste for hire.
32.17    Subd. 4. Application. (a) A person must apply to the commissioner for a commercial
32.18animal waste technician license on forms and in the manner required by the commissioner
32.19and must include the application fee. The commissioner shall prescribe and administer
32.20an examination or equivalent measure to determine if the applicant is eligible for the
32.21commercial animal waste technician license, site manager license, or applicator license.
32.22(b) The commissioner of agriculture, in cooperation with the University of
32.23Minnesota Extension Service and appropriate educational institutions, shall establish and
32.24implement a program for training and licensing commercial animal waste technicians.
32.25    Subd. 5. Renewal application. (a) A person must apply to the commissioner of
32.26agriculture to renew a commercial animal waste technician license and must include the
32.27application fee. The commissioner may renew a commercial animal waste technician
32.28applicator or site manager license, subject to reexamination, attendance at workshops
32.29approved by the commissioner, or other requirements imposed by the commissioner to
32.30provide the animal waste technician with information regarding changing technology and
32.31to help ensure a continuing level of competence and ability to manage and apply animal
32.32wastes properly. The applicant may renew a commercial animal waste technician license
32.33within 12 months after expiration of the license without having to meet initial testing
32.34requirements. The commissioner may require additional demonstration of animal waste
32.35technician qualification if a person has had a license suspended or revoked or has had a
32.36history of violations of this section.
33.1(b) An applicant who meets renewal requirements by reexamination instead
33.2of attending workshops must pay a fee for the reexamination as determined by the
33.3commissioner.
33.4    Subd. 6. Financial responsibility. (a) A commercial animal waste technician
33.5license may not be issued unless the applicant furnishes proof of financial responsibility.
33.6The financial responsibility may be demonstrated by (1) proof of net assets equal to or
33.7greater than $50,000, or (2) a performance bond or insurance of the kind and in an amount
33.8determined by the commissioner of agriculture.
33.9(b) The bond or insurance must cover a period of time at least equal to the term of
33.10the applicant's license. The commissioner shall immediately suspend the license of a
33.11person who fails to maintain the required bond or insurance.
33.12(c) An employee of a licensed person is not required to maintain an insurance policy
33.13or bond during the time the employer is maintaining the required insurance or bond.
33.14(d) Applications for reinstatement of a license suspended under paragraph (b) must
33.15be accompanied by proof of satisfaction of judgments previously rendered.
33.16    Subd. 7. Application fee. (a) A person initially applying for or renewing
33.17a commercial animal waste technician applicator license must pay a nonrefundable
33.18application fee of $50 and a fee of $10 for each additional identification card requested.
33.19 $25. A person initially applying for or renewing a commercial animal waste technician
33.20site manager license must pay a nonrefundable application fee of $50. A person initially
33.21applying for or renewing a commercial animal waste technician company license must
33.22pay a nonrefundable application fee of $100.
33.23(b) A license renewal application received after March 1 in the year for which the
33.24license is to be issued is subject to a penalty fee of 50 percent of the application fee. The
33.25penalty fee must be paid before the renewal license may be issued.
33.26(c) An application for a duplicate commercial animal waste technician license must
33.27be accompanied by a nonrefundable fee of $10.

33.28    Sec. 41. Minnesota Statutes 2012, section 18C.433, subdivision 1, is amended to read:
33.29    Subdivision 1. Requirement. Beginning January 1, 2006, only a commercial
33.30animal waste technician, site manager or commercial animal waste technician applicator
33.31 may apply animal waste from a feedlot that:
33.32(1) has a capacity of 300 animal units or more; and
33.33(2) does not have an updated manure management plan that meets the requirements
33.34of Pollution Control Agency rules.

34.1    Sec. 42. Minnesota Statutes 2012, section 31.94, is amended to read:
34.231.94 COMMISSIONER DUTIES.
34.3(a) In order to promote opportunities for organic agriculture in Minnesota, the
34.4commissioner shall:
34.5(1) survey producers and support services and organizations to determine
34.6information and research needs in the area of organic agriculture practices;
34.7(2) work with the University of Minnesota to demonstrate the on-farm applicability
34.8of organic agriculture practices to conditions in this state;
34.9(3) direct the programs of the department so as to work toward the promotion of
34.10organic agriculture in this state;
34.11(4) inform agencies of how state or federal programs could utilize and support
34.12organic agriculture practices; and
34.13(5) work closely with producers, the University of Minnesota, the Minnesota Trade
34.14Office, and other appropriate organizations to identify opportunities and needs as well
34.15as ensure coordination and avoid duplication of state agency efforts regarding research,
34.16teaching, marketing, and extension work relating to organic agriculture.
34.17(b) By November 15 of each year that ends in a zero or a five, the commissioner,
34.18in conjunction with the task force created in paragraph (c), shall report on the status of
34.19organic agriculture in Minnesota to the legislative policy and finance committees and
34.20divisions with jurisdiction over agriculture. The report must include available data on
34.21organic acreage and production, available data on the sales or market performance of
34.22organic products, and recommendations regarding programs, policies, and research efforts
34.23that will benefit Minnesota's organic agriculture sector.
34.24(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the
34.25University of Minnesota on policies and programs that will improve organic agriculture in
34.26Minnesota, including how available resources can most effectively be used for outreach,
34.27education, research, and technical assistance that meet the needs of the organic agriculture
34.28community. The task force must consist of the following residents of the state:
34.29(1) three organic farmers using organic agriculture methods;
34.30(2) one wholesaler or distributor of organic products;
34.31(3) one representative of organic certification agencies;
34.32(4) two organic processors;
34.33(5) one representative from University of Minnesota Extension;
34.34(6) one University of Minnesota faculty member;
34.35(7) one representative from a nonprofit organization representing producers;
34.36(8) two public members;
35.1(9) one representative from the United States Department of Agriculture;
35.2(10) one retailer of organic products; and
35.3(11) one organic consumer representative.
35.4The commissioner, in consultation with the director of the Minnesota Agricultural
35.5Experiment Station; the dean and director of University of Minnesota Extension; and the
35.6dean of the College of Food, Agricultural and Natural Resource Sciences, shall appoint
35.7members to serve staggered two-year three-year terms.
35.8Compensation and removal of members are governed by section 15.059, subdivision
35.96
. The task force must meet at least twice each year and expires on June 30, 2013 2016.
35.10(d) For the purposes of expanding, improving, and developing production and
35.11marketing of the organic products of Minnesota agriculture, the commissioner may
35.12receive funds from state and federal sources and spend them, including through grants or
35.13contracts, to assist producers and processors to achieve certification, to conduct education
35.14or marketing activities, to enter into research and development partnerships, or to address
35.15production or marketing obstacles to the growth and well-being of the industry.
35.16(e) The commissioner may facilitate the registration of state organic production
35.17and handling operations including those exempt from organic certification according to
35.18Code of Federal Regulations, title 7, section 205.101, and certification agents operating
35.19within the state.

35.20    Sec. 43. Minnesota Statutes 2012, section 41A.10, subdivision 2, is amended to read:
35.21    Subd. 2. Cellulosic biofuel production goal. The state cellulosic biofuel production
35.22goal is one-quarter of the total amount necessary for ethanol biofuel use required under
35.23section 239.791, subdivision 1a 1, by 2015 or when cellulosic biofuel facilities in the state
35.24attain a total annual production level of 60,000,000 gallons, whichever is first.

35.25    Sec. 44. Minnesota Statutes 2012, section 41A.10, is amended by adding a subdivision
35.26to read:
35.27    Subd. 3. Expiration. This section expires January 1, 2015.

35.28    Sec. 45. Minnesota Statutes 2012, section 41A.105, subdivision 1a, is amended to read:
35.29    Subd. 1a. Definitions. For the purpose of this section:
35.30    (1) "biobased content" means a chemical, polymer, monomer, or plastic that is not
35.31sold primarily for use as food, feed, or fuel and that has a biobased percentage of at least
35.3251 percent as determined by testing representative samples using American Society for
35.33Testing and Materials specification D6866;
36.1    (2) "biobased formulated product" means a product that is not sold primarily for use
36.2as food, feed, or fuel and that has a biobased content percentage of at least ten percent
36.3as determined by testing representative samples using American Society for Testing
36.4and Materials specification D6866, or that contains a biobased chemical constituent
36.5that displaces a known hazardous or toxic constituent previously used in the product
36.6formulation;
36.7    (1) (3) "biobutanol facility" means a facility at which biobutanol is produced; and
36.8    (2) (4) "biobutanol" means fermentation isobutyl alcohol that is derived from
36.9agricultural products, including potatoes, cereal grains, cheese whey, and sugar beets;
36.10forest products; or other renewable resources, including residue and waste generated
36.11from the production, processing, and marketing of agricultural products, forest products,
36.12and other renewable resources.

36.13    Sec. 46. Minnesota Statutes 2012, section 41A.105, subdivision 3, is amended to read:
36.14    Subd. 3. Duties. The board shall research and report to the commissioner of
36.15agriculture and to the legislature recommendations as to how the state can invest its
36.16resources to most efficiently achieve energy independence, agricultural and natural
36.17resources sustainability, and rural economic vitality. The board shall:
36.18    (1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen,
36.19methanol, biodiesel, and ethanol within Minnesota;
36.20    (2) examine the opportunity for biobased content and biobased formulated product
36.21production at integrated biorefineries or stand alone facilities using agricultural and
36.22forestry feedstocks;
36.23    (2) (3) develop equity grant programs to assist locally owned facilities;
36.24    (3) (4) study the proper role of the state in creating financing and investing and
36.25providing incentives;
36.26    (4) (5) evaluate how state and federal programs, including the Farm Bill, can best
36.27work together and leverage resources;
36.28    (5) (6) work with other entities and committees to develop a clean energy program;
36.29and
36.30    (6) (7) report to the legislature before February 1 each year with recommendations
36.31as to appropriations and results of past actions and projects.

36.32    Sec. 47. Minnesota Statutes 2012, section 41A.105, subdivision 5, is amended to read:
36.33    Subd. 5. Expiration. This section expires June 30, 2014 2015.

37.1    Sec. 48. Minnesota Statutes 2012, section 41A.12, is amended by adding a subdivision
37.2to read:
37.3    Subd. 3a. Grant awards. Grant projects may continue for up to three years.
37.4Multiyear projects must be reevaluated by the commissioner before second- and third-year
37.5funding is approved. A project is limited to one grant for its funding.

37.6    Sec. 49. Minnesota Statutes 2012, section 41B.04, subdivision 9, is amended to read:
37.7    Subd. 9. Restructured loan agreement. (a) For a deferred restructured loan, all
37.8payments on the primary and secondary principal, all payments of interest on the secondary
37.9principal, and an agreed portion of the interest payable to the eligible agricultural lender
37.10on the primary principal must be deferred to the end of the term of the loan.
37.11(b) Interest on secondary principal must accrue at a below market interest rate.
37.12(c) At the conclusion of the term of the restructured loan, the borrower owes primary
37.13principal, secondary principal, and deferred interest on primary and secondary principal.
37.14However, part of this balloon payment may be forgiven following an appraisal by the
37.15lender and the authority to determine the current market value of the real estate subject to
37.16the mortgage. If the current market value of the land after appraisal is less than the amount
37.17of debt owed by the borrower to the lender and authority on this obligation, that portion of
37.18the obligation that exceeds the current market value of the real property must be forgiven
37.19by the lender and the authority in the following order:
37.20(1) deferred interest on secondary principal;
37.21(2) secondary principal;
37.22(3) deferred interest on primary principal;
37.23(4) primary principal as provided in an agreement between the authority and the
37.24lender; and
37.25(5) accrued but not deferred interest on primary principal.
37.26(d) For an amortized restructured loan, payments must include installments on
37.27primary principal and interest on the primary principal. An amortized restructured loan
37.28must be amortized over a time period and upon terms to be established by the authority by
37.29rule.
37.30(e) A borrower may prepay the restructured loan, with all primary and secondary
37.31principal and interest and deferred interest at any time without prepayment penalty.
37.32(f) The authority may not participate in refinancing a restructured loan at the
37.33conclusion of the restructured loan.

37.34    Sec. 50. Minnesota Statutes 2012, section 41D.01, subdivision 4, is amended to read:
38.1    Subd. 4. Expiration. This section expires on June 30, 2013 2018.

38.2    Sec. 51. Minnesota Statutes 2012, section 116J.437, subdivision 1, is amended to read:
38.3    Subdivision 1. Definitions. (a) For the purpose of this section, the following terms
38.4have the meanings given.
38.5    (b) "Green economy" means products, processes, methods, technologies, or services
38.6intended to do one or more of the following:
38.7    (1) increase the use of energy from renewable sources, including through achieving
38.8the renewable energy standard established in section 216B.1691;
38.9    (2) achieve the statewide energy-savings goal established in section 216B.2401,
38.10including energy savings achieved by the conservation investment program under section
38.11216B.241 ;
38.12    (3) achieve the greenhouse gas emission reduction goals of section 216H.02,
38.13subdivision 1, including through reduction of greenhouse gas emissions, as defined in
38.14section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through,
38.15but not limited to, carbon capture, storage, or sequestration;
38.16    (4) monitor, protect, restore, and preserve the quality of surface waters, including
38.17actions to further the purposes of the Clean Water Legacy Act as provided in section
38.18114D.10, subdivision 1 ;
38.19    (5) expand the use of biofuels, including by expanding the feasibility or reducing the
38.20cost of producing biofuels or the types of equipment, machinery, and vehicles that can
38.21use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections
38.2241A.10, subdivision 2, and 41A.11 petroleum replacement goal in section 239.7911; or
38.23    (6) increase the use of green chemistry, as defined in section 116.9401.
38.24For the purpose of clause (3), "green economy" includes strategies that reduce carbon
38.25emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass
38.26transit or otherwise reducing commuting for employees.

38.27    Sec. 52. Minnesota Statutes 2012, section 216E.12, subdivision 4, is amended to read:
38.28    Subd. 4. Contiguous land. (a) When private real property that is an agricultural or
38.29nonagricultural homestead, nonhomestead agricultural land, rental residential property,
38.30and both commercial and noncommercial seasonal residential recreational property, as
38.31those terms are defined in section 273.13 is proposed to be acquired for the construction of
38.32a site or route for a high-voltage transmission line with a capacity of 200 kilovolts or more
38.33by eminent domain proceedings, the fee owner, or when applicable, the fee owner with the
38.34written consent of the contract for deed vendee, or the contract for deed vendee with the
39.1written consent of the fee owner, shall have the option to require the utility to condemn a
39.2fee interest in any amount of contiguous, commercially viable land which the owner or
39.3vendee wholly owns or has contracted to own in undivided fee and elects in writing to
39.4transfer to the utility within 60 days after receipt of the notice of the objects of the petition
39.5filed pursuant to section 117.055. Commercial viability shall be determined without regard
39.6to the presence of the utility route or site. Within 60 days after receipt by the utility of
39.7an owner's election to exercise this option, the utility shall provide written notice to the
39.8owner of any objection the utility has to the owner's election, and if no objection is made
39.9within that time, any objection shall be deemed waived. Within 90 days of the service of
39.10an objection by the utility, the district court having jurisdiction over the eminent domain
39.11proceeding shall hold a hearing to determine whether the utility's objection is upheld or
39.12rejected. The owner or, when applicable, the contract vendee shall have only one such
39.13option and may not expand or otherwise modify an election without the consent of the
39.14utility. The required acquisition of land pursuant to this subdivision shall be considered
39.15an acquisition for a public purpose and for use in the utility's business, for purposes of
39.16chapter 117 and section 500.24, respectively; provided that a utility shall divest itself
39.17completely of all such lands used for farming or capable of being used for farming not
39.18later than the time it can receive the market value paid at the time of acquisition of lands
39.19less any diminution in value by reason of the presence of the utility route or site. Upon
39.20the owner's election made under this subdivision, the easement interest over and adjacent
39.21to the lands designated by the owner to be acquired in fee, sought in the condemnation
39.22petition for a right-of-way for a high-voltage transmission line with a capacity of 200
39.23kilovolts or more shall automatically be converted into a fee taking.
39.24(b) All rights and protections provided to an owner under chapter 117, including in
39.25particular sections 117.031, 117.036, 117.186, and 117.52, apply to acquisition of land
39.26or an interest in land under this section.
39.27(c) Within 90 days of an owner's election under this subdivision to require the utility
39.28to acquire land, or 90 days after a district court decision overruling a utility objection to an
39.29election made pursuant to paragraph (a), the utility must make a written offer to acquire
39.30that land and amend its condemnation petition to include the additional land.
39.31(d) For purposes of this subdivision, "owner" means the fee owner or, when
39.32applicable, the fee owner with the written consent of the contract for deed vendee or the
39.33contract for deed vendee with the written consent of the fee owner.
39.34EFFECTIVE DATE.This section is effective the day following final enactment
39.35and applies to eminent domain proceedings or actions pending or commenced on or after
40.1that date. "Commenced" means when service of notice of the petition under Minnesota
40.2Statutes, section 117.055, is made.

40.3    Sec. 53. Minnesota Statutes 2012, section 223.17, is amended by adding a subdivision
40.4to read:
40.5    Subd. 7a. Bond requirements; claims. For entities licensed under this chapter
40.6and chapter 232, the bond requirements and claims against the bond are governed under
40.7section 232.22, subdivision 6a.

40.8    Sec. 54. Minnesota Statutes 2012, section 232.22, is amended by adding a subdivision
40.9to read:
40.10    Subd. 6a. Bond determinations. If a public grain warehouse operator is licensed
40.11under both this chapter and chapter 223, the warehouse shall have its bond determined
40.12by its gross annual grain purchase amount or its annual average grain storage value,
40.13whichever is greater. For those entities licensed under this chapter and chapter 223, the
40.14entire bond shall be available to any claims against the bond for claims filed under this
40.15chapter and chapter 223.

40.16    Sec. 55. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
40.17to read:
40.18    Subd. 1a. Advanced biofuel. "Advanced biofuel" has the meaning given in Public
40.19Law 110-140, title 2, subtitle A, section 201.

40.20    Sec. 56. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
40.21to read:
40.22    Subd. 5a. Biofuel. "Biofuel" means a renewable fuel with an approved pathway
40.23under authority of the federal Energy Policy Act of 2005, Public Law 109-58, as amended
40.24by the federal Energy Independence and Security Act of 2007, Public Law 110–140, and
40.25approved for sale by the United States Environmental Protection Agency. As such, biofuel
40.26includes both advanced and conventional biofuels.

40.27    Sec. 57. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
40.28to read:
40.29    Subd. 7a. Conventional biofuel. "Conventional biofuel" means ethanol derived
40.30from cornstarch, as defined in Public Law 110-140, title 2, subtitle A, section 201.

41.1    Sec. 58. Minnesota Statutes 2012, section 239.791, subdivision 1, is amended to read:
41.2    Subdivision 1. Minimum ethanol biofuel content required. (a) Except as provided
41.3in subdivisions 10 to 14, a person responsible for the product shall ensure that all gasoline
41.4sold or offered for sale in Minnesota must contain at least the quantity of ethanol biofuel
41.5 required by clause (1) or (2), whichever is greater at the option of the person responsible
41.6for the product:
41.7    (1) the greater of:
41.8    (i) 10.0 percent denatured ethanol conventional biofuel by volume; or
41.9    (2) (ii) the maximum percent of denatured ethanol conventional biofuel by volume
41.10authorized in a waiver granted by the United States Environmental Protection Agency; or
41.11    (2) 10.0 percent of a biofuel, other than a conventional biofuel, by volume authorized
41.12in a waiver granted by the United States Environmental Protection Agency or a biofuel
41.13formulation registered by the United States Environmental Protection Agency under
41.14United States Code, title 42, section 7545.
41.15    (b) For purposes of enforcing the minimum ethanol requirement of paragraph
41.16(a), clause (1), item (i), or clause (2), a gasoline/ethanol gasoline/biofuel blend will be
41.17construed to be in compliance if the ethanol biofuel content, exclusive of denaturants and
41.18other permitted components, comprises not less than 9.2 percent by volume and not more
41.19than 10.0 percent by volume of the blend as determined by an appropriate United States
41.20Environmental Protection Agency or American Society of Testing Materials standard
41.21method of analysis of alcohol/ether content in engine fuels.
41.22    (c) The provisions of this subdivision are suspended during any period of time that
41.23subdivision 1a, paragraph (a), is in effect. The aggregate amount of biofuel blended
41.24pursuant to this subdivision may be any biofuel; however, conventional biofuel must
41.25comprise no less than the portion specified on and after the specified dates:
41.26
(1)
July 1, 2013
90 percent
41.27
(2)
January 1, 2015
80 percent
41.28
(3)
January 1, 2017
70 percent
41.29
(4)
January 1, 2020
60 percent
41.30
(5)
January 1, 2025
no minimum

41.31    Sec. 59. Minnesota Statutes 2012, section 239.791, subdivision 2a, is amended to read:
41.32    Subd. 2a. Federal Clean Air Act waivers; conditions. (a) Before a waiver granted
41.33by the United States Environmental Protection Agency under section 211(f)(4) of the
41.34Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4),
41.35 may alter the minimum content level required by subdivision 1, paragraph (a), clause (2),
41.36or subdivision 1a, paragraph (a), clause (2) (1), item (ii), the waiver must:
42.1    (1) apply to all gasoline-powered motor vehicles irrespective of model year; and
42.2    (2) allow for special regulatory treatment of Reid vapor pressure under Code of
42.3Federal Regulations, title 40, section 80.27, paragraph (d), for blends of gasoline and
42.4ethanol up to the maximum percent of denatured ethanol by volume authorized under
42.5the waiver.
42.6    (b) The minimum ethanol biofuel requirement in subdivision 1, paragraph (a), clause
42.7(2), or subdivision 1a, paragraph (a), clause (2), shall, upon the grant of the federal waiver
42.8 or authority specified in United States Code, title 42, section 7545, that allows for greater
42.9blends of gasoline and biofuel in this state, be effective the day after the commissioner
42.10of commerce publishes notice in the State Register. In making this determination, the
42.11commissioner shall consider the amount of time required by refiners, retailers, pipeline
42.12and distribution terminal companies, and other fuel suppliers, acting expeditiously, to
42.13make the operational and logistical changes required to supply fuel in compliance with
42.14the minimum ethanol biofuel requirement.

42.15    Sec. 60. Minnesota Statutes 2012, section 239.791, subdivision 2b, is amended to read:
42.16    Subd. 2b. Limited liability waiver. No motor fuel shall be deemed to be a defective
42.17product by virtue of the fact that the motor fuel is formulated or blended pursuant to
42.18the requirements of subdivision 1, paragraph (a), clause (2), or subdivision 1a, under
42.19any theory of liability except for simple or willful negligence or fraud. This subdivision
42.20does not preclude an action for negligent, fraudulent, or willful acts. This subdivision
42.21does not affect a person whose liability arises under chapter 115, water pollution control;
42.22115A, waste management; 115B, environmental response and liability; 115C, leaking
42.23underground storage tanks; or 299J, pipeline safety; under public nuisance law for damage
42.24to the environment or the public health; under any other environmental or public health
42.25law; or under any environmental or public health ordinance or program of a municipality
42.26as defined in section 466.01.

42.27    Sec. 61. Minnesota Statutes 2012, section 239.7911, is amended to read:
42.28239.7911 PETROLEUM REPLACEMENT PROMOTION.
42.29    Subdivision 1. Petroleum replacement goal. The tiered petroleum replacement
42.30goal of the state of Minnesota is that biofuel comprises at least the specified portion of
42.31total gasoline sold or offered for sale in this state by each specified year:
42.32    (1) at least 20 percent of the liquid fuel sold in the state is derived from renewable
42.33sources by December 31, 2015; and
43.1    (2) at least 25 percent of the liquid fuel sold in the state is derived from renewable
43.2sources by December 31, 2025.
43.3
(1)
2015
14 percent
43.4
(2)
2017
18 percent
43.5
(3)
2020
25 percent
43.6
(4)
2025
30 percent
43.7    Subd. 2. Promotion of renewable liquid fuels. (a) The commissioner of agriculture,
43.8in consultation with the commissioners of commerce and the Pollution Control Agency,
43.9shall identify and implement activities necessary for the widespread use of renewable
43.10liquid fuels in the state to achieve the goals in subdivision 1. Beginning November
43.111, 2005, and continuing through 2015, the commissioners, or their designees, shall
43.12work with convene a task force pursuant to section 15.014 that includes representatives
43.13from the renewable fuels industry, petroleum retailers, refiners, automakers, small
43.14engine manufacturers, and other interested groups, to. The task force shall assist the
43.15commissioners in carrying out the activities in paragraph (b) and eliminating barriers to the
43.16use of greater biofuel blends in this state. The task force must coordinate efforts with the
43.17NextGen Energy Board, the biodiesel task force, and the Renewable Energy Roundtable
43.18and develop annual recommendations for administrative and legislative action.
43.19    (b) The activities of the commissioners under this subdivision shall include, but not
43.20be limited to:
43.21    (1) developing recommendations for specific, cost-effective incentives necessary
43.22to expedite the use of greater biofuel blends in this state including, but not limited to,
43.23incentives for retailers to install equipment necessary for dispensing to dispense renewable
43.24liquid fuels to the public;
43.25    (2) expanding the renewable-fuel options available to Minnesota consumers by
43.26obtaining federal approval for the use of E20 and additional blends that contain a greater
43.27percentage of ethanol, including but not limited to E30 and E50, as gasoline biofuel;
43.28    (3) developing recommendations for ensuring to ensure that motor vehicles and
43.29small engine equipment have access to an adequate supply of fuel;
43.30    (4) working with the owners and operators of large corporate automotive fleets in the
43.31state to increase their use of renewable fuels; and
43.32    (5) working to maintain an affordable retail price for liquid fuels;
43.33    (6) facilitating the production and use of advanced biofuels in this state; and
43.34    (7) developing procedures for reporting the amount and type of biofuel under
43.35subdivision 1 and section 239.791, subdivision 1, paragraph (c).
44.1    (c) Notwithstanding section 15.014, the task force required under paragraph (a)
44.2expires on December 31, 2015.

44.3    Sec. 62. Minnesota Statutes 2012, section 296A.01, is amended by adding a
44.4subdivision to read:
44.5    Subd. 8b. Biobutanol. "Biobutanol" means isobutyl alcohol produced by
44.6fermenting agriculturally generated organic material that is to be blended with gasoline
44.7and meets either:
44.8    (1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline
44.9for Use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM
44.10for general distribution; or
44.11    (2) in the absence of an ASTM standard specification, the following list of
44.12requirements:
44.13    (i) visually free of sediment and suspended matter;
44.14    (ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient
44.15temperature, whichever is higher;
44.16    (iii) free of any adulterant or contaminant that can render it unacceptable for its
44.17commonly used applications;
44.18    (iv) contains not less than 96 volume percent isobutyl alcohol;
44.19    (v) contains not more than 0.4 volume percent methanol;
44.20    (vi) contains not more than 1.0 volume percent water as determined by ASTM
44.21standard test method E203 or E1064;
44.22    (vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined
44.23by ASTM standard test method D1613;
44.24    (viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters
44.25as determined by ASTM standard test method D381;
44.26    (ix) sulfur content of not more than 30 parts per million as determined by ASTM
44.27standard test method D2622 or D5453; and
44.28    (x) contains not more than four parts per million total inorganic sulfate.

44.29    Sec. 63. Minnesota Statutes 2012, section 296A.01, subdivision 19, is amended to read:
44.30    Subd. 19. E85. "E85" means a petroleum product that is a blend of agriculturally
44.31derived denatured ethanol and gasoline or natural gasoline that typically contains not more
44.32than 85 percent ethanol by volume, but at a minimum must contain 60 51 percent ethanol by
44.33volume. For the purposes of this chapter, the energy content of E85 will be considered to be
45.182,000 BTUs per gallon. E85 produced for use as a motor fuel in alternative fuel vehicles
45.2as defined in subdivision 5 must comply with ASTM specification D5798-07 D5798-11.
45.3EFFECTIVE DATE.This section is effective the day following final enactment.

45.4    Sec. 64. REVISOR'S INSTRUCTION.
45.5The revisor of statutes shall renumber Minnesota Statutes, section 18B.01,
45.6subdivision 4a, as subdivision 4b and correct any cross-references.

45.7    Sec. 65. REPEALER.
45.8Minnesota Statutes 2012, sections 18.91, subdivisions 3 and 5; 18B.07, subdivision
45.96; and 239.791, subdivision 1a, are repealed.

45.10ARTICLE 3
45.11ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS

45.12
Section 1. SUMMARY OF APPROPRIATIONS.
45.13    The amounts shown in this section summarize direct appropriations, by fund, made
45.14in this article.
45.15
2014
2015
Total
45.16
General
$
87,464,000
$
87,843,000
$
175,307,000
45.17
45.18
State Government Special
Revenue
75,000
75,000
150,000
45.19
Environmental
68,680,000
68,825,000
137,505,000
45.20
Natural Resources
91,724,000
94,184,000
185,908,000
45.21
Game and Fish
91,372,000
91,372,000
182,744,000
45.22
Remediation
10,596,000
10,596,000
21,192,000
45.23
Permanent School
200,000
200,000
400,000
45.24
Special Revenue
1,422,000
1,377,000
2,799,000
45.25
Total
$
351,533,000
$
354,472,000
$
706,005,000

45.26
Sec. 2. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.
45.27    The sums shown in the columns marked "Appropriations" are appropriated to the
45.28agencies and for the purposes specified in this article. The appropriations are from the
45.29general fund, or another named fund, and are available for the fiscal years indicated
45.30for each purpose. The figures "2014" and "2015" used in this article mean that the
45.31appropriations listed under them are available for the fiscal year ending June 30, 2014, or
45.32June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
46.1year 2015. "The biennium" is fiscal years 2014 and 2015. Appropriations for the fiscal
46.2year ending June 30, 2013, are effective the day following final enactment.
46.3
APPROPRIATIONS
46.4
Available for the Year
46.5
Ending June 30
46.6
2014
2015

46.7
Sec. 3. POLLUTION CONTROL AGENCY
46.8
Subdivision 1.Total Appropriation
$
85,806,000
$
85,931,000
46.9
Appropriations by Fund
46.10
2014
2015
46.11
General
5,133,000
5,158,000
46.12
46.13
State Government
Special Revenue
75,000
75,000
46.14
Special Revenue
1,422,000
1,377,000
46.15
Environmental
68,680,000
68,825,000
46.16
Remediation
10,496,000
10,496,000
46.17The amounts that may be spent for each
46.18purpose are specified in the following
46.19subdivisions.
46.20
Subd. 2.Water
24,697,000
24,697,000
46.21
Appropriations by Fund
46.22
2014
2015
46.23
General
3,737,000
3,737,000
46.24
46.25
State Government
Special Revenue
75,000
75,000
46.26
Environmental
20,885,000
20,885,000
46.27$1,378,000 the first year and $1,378,000 the
46.28second year are for water program operations.
46.29$1,959,000 the first year and $1,959,000
46.30the second year are for grants to delegated
46.31counties to administer the county feedlot
46.32program under Minnesota Statutes, section
46.33116.0711, subdivisions 2 and 3. By January
46.3415, 2016, the commissioner shall submit a
46.35report detailing the results achieved with
46.36this appropriation to the chairs and ranking
46.37minority members of the senate and house
47.1of representatives committees and divisions
47.2with jurisdiction over environment and
47.3natural resources policy and finance. Money
47.4remaining after the first year is available for
47.5the second year.
47.6$740,000 the first year and $740,000 the
47.7second year are from the environmental
47.8fund to address the need for continued
47.9increased activity in the areas of new
47.10technology review, technical assistance
47.11for local governments, and enforcement
47.12under Minnesota Statutes, sections 115.55
47.13to 115.58, and to complete the requirements
47.14of Laws 2003, chapter 128, article 1, section
47.15165.
47.16$400,000 the first year and $400,000
47.17the second year are for the clean water
47.18partnership program. Any unexpended
47.19balance in the first year does not cancel but
47.20is available in the second year. Priority shall
47.21be given to projects preventing impairments
47.22and degradation of lakes, rivers, streams,
47.23and groundwater according to Minnesota
47.24Statutes, section 114D.20, subdivision 2,
47.25clause (4).
47.26$664,000 the first year and $664,000 the
47.27second year are from the environmental
47.28fund for subsurface sewage treatment
47.29system (SSTS) program administration
47.30and community technical assistance and
47.31education, including grants and technical
47.32assistance to communities for water quality
47.33protection. Of this amount, $80,000 each
47.34year is for assistance to counties through
47.35grants for SSTS program administration.
48.1A county receiving a grant from this
48.2appropriation shall submit a report detailing
48.3the results achieved with the grant to the
48.4commissioner. The county is not eligible for
48.5funds from the second year appropriation
48.6until the commissioner receives the report.
48.7Any unexpended balance in the first year does
48.8not cancel but is available in the second year.
48.9$105,000 the first year and $105,000 the
48.10second year are from the environmental fund
48.11for registration of wastewater laboratories.
48.12$50,000 the first year is from the
48.13environmental fund for providing technical
48.14assistance to local units of government to
48.15address the water quality impacts from
48.16polycyclic aromatic hydrocarbons resulting
48.17from the use of coal tar products as regulated
48.18under Minnesota Statutes, section 116.201.
48.19$313,000 the first year and $313,000 the
48.20second year are from the environmental
48.21fund to be transferred to the commissioner
48.22of health to continue perfluorochemical
48.23biomonitoring in eastern metropolitan
48.24communities, as recommended by the
48.25Environmental Health Tracking and
48.26Biomonitoring Advisory Panel.
48.27Notwithstanding Minnesota Statutes, section
48.2816A.28, the appropriations encumbered on or
48.29before June 30, 2015, as grants or contracts
48.30for SSTS's, surface water and groundwater
48.31assessments, total maximum daily loads,
48.32storm water, and water quality protection in
48.33this subdivision are available until June 30,
48.342018.
48.35
Subd. 3.Air
15,031,000
15,201,000
49.1
Appropriations by Fund
49.2
2014
2015
49.3
Environmental
15,031,000
15,201,000
49.4$200,000 the first year and $200,000 the
49.5second year are from the environmental fund
49.6for a monitoring program under Minnesota
49.7Statutes, section 116.454.
49.8Up to $150,000 the first year and $150,000
49.9the second year may be transferred from the
49.10environmental fund to the small business
49.11environmental improvement loan account
49.12established in Minnesota Statutes, section
49.13116.993.
49.14$125,000 the first year and $125,000 the
49.15second year are from the environmental fund
49.16for monitoring ambient air for hazardous
49.17pollutants in the metropolitan area.
49.18$360,000 the first year and $360,000 the
49.19second year are from the environmental fund
49.20for systematic, localized monitoring efforts
49.21in the state that:
49.22(1) sample ambient air for a period of one to
49.23three months at various sites;
49.24(2) analyze the samples and compare the data
49.25to the agency's fixed air monitoring sites; and
49.26(3) determine whether significant localized
49.27differences exist.
49.28The commissioner, when selecting areas to
49.29monitor, shall give priority to areas where low
49.30income, indigenous American Indians, and
49.31communities of color are disproportionately
49.32impacted by pollution from highway traffic,
49.33air traffic, and industrial sources to assist
49.34with efforts to ensure environmental justice
50.1for those areas. For the purposes of this
50.2paragraph, "environmental justice" means the
50.3fair treatment of people of all races, cultures,
50.4and income levels in the development,
50.5adoption, implementation, and enforcement
50.6of environmental laws and policies.
50.7$540,000 the first year and $540,000 the
50.8second year are from the environmental
50.9fund for emission reduction activities and
50.10grants to small businesses and other nonpoint
50.11emission reduction efforts. Any unexpended
50.12balance in the first year does not cancel but is
50.13available in the second year.
50.14
Subd. 4.Land
17,412,000
17,412,000
50.15
Appropriations by Fund
50.16
2014
2015
50.17
Environmental
6,916,000
6,916,000
50.18
Remediation
10,496,000
10,496,000
50.19All money for environmental response,
50.20compensation, and compliance in the
50.21remediation fund not otherwise appropriated
50.22is appropriated to the commissioners of the
50.23Pollution Control Agency and agriculture
50.24for purposes of Minnesota Statutes, section
50.25115B.20, subdivision 2, clauses (1), (2),
50.26(3), (6), and (7). At the beginning of each
50.27fiscal year, the two commissioners shall
50.28jointly submit an annual spending plan
50.29to the commissioner of management and
50.30budget that maximizes the utilization of
50.31resources and appropriately allocates the
50.32money between the two departments. This
50.33appropriation is available until June 30, 2015.
50.34$3,616,000 the first year and $3,616,000 the
50.35second year are from the remediation fund for
51.1purposes of the leaking underground storage
51.2tank program to protect the land. These same
51.3annual amounts are transferred from the
51.4petroleum tank fund to the remediation fund.
51.5$252,000 the first year and $252,000 the
51.6second year are from the remediation fund
51.7for transfer to the commissioner of health for
51.8private water supply monitoring and health
51.9assessment costs in areas contaminated
51.10by unpermitted mixed municipal solid
51.11waste disposal facilities and drinking water
51.12advisories and public information activities
51.13for areas contaminated by hazardous releases.
51.14
51.15
Subd. 5.Environmental Assistance and
Cross-Media
28,271,000
28,201,000
51.16
Appropriations by Fund
51.17
2014
2015
51.18
Special Revenue
1,422,000
1,377,000
51.19
Environmental
25,848,000
25,823,000
51.20
General
1,001,000
1,001,000
51.21$14,450,000 the first year and $14,450,000
51.22the second year are from the environmental
51.23fund for SCORE grants to counties. Of
51.24this amount, $14,250,000 each year is for
51.25SCORE block grants and $200,000 each year
51.26is for competitive grants.
51.27$119,000 the first year and $119,000 the
51.28second year are from the environmental
51.29fund for environmental assistance grants
51.30or loans under Minnesota Statutes, section
51.31115A.0716. Any unencumbered grant and
51.32loan balances in the first year do not cancel
51.33but are available for grants and loans in the
51.34second year.
51.35$89,000 the first year and $89,000 the
51.36second year are from the environmental fund
52.1for duties related to harmful chemicals in
52.2products under Minnesota Statutes, sections
52.3116.9401 to 116.9407. Of this amount,
52.4$57,000 each year is transferred to the
52.5commissioner of health.
52.6$600,000 the first year and $600,000 the
52.7second year are from the environmental
52.8fund to address environmental health risks.
52.9Of this amount, $499,000 the first year and
52.10$499,000 the second year are for transfer to
52.11the Department of Health.
52.12$312,000 the first year and $312,000 the
52.13second year are from the general fund and
52.14$188,000 the first year and $188,000 the
52.15second year are from the environmental fund
52.16for Environmental Quality Board operations
52.17and support.
52.18$75,000 the first year and $50,000 the second
52.19year are from the environmental fund for
52.20transfer to the Office of Administrative
52.21Hearings to establish sanitary districts.
52.22$1,422,000 the first year and $1,377,000 the
52.23second year are from the special revenue
52.24fund for the Environmental Quality Board to
52.25lead an interagency team to provide technical
52.26assistance regarding the mining, processing,
52.27and transporting of silica sand and develop
52.28the model standards and criteria required
52.29under Minnesota Statutes, section 116C.99.
52.30Of this amount, $266,000 the first year and
52.31$263,000 the second year are for transfer to
52.32the commissioner of health, $447,000 the
52.33first year and $420,000 the second year are
52.34for transfer to the commissioner of natural
52.35resources, $5,000 the first year and $10,000
53.1the second year are for transfer to the Board
53.2of Water and Soil Resources, and $150,000
53.3the first year and $140,000 the second year
53.4are for transfer to the commissioner of
53.5transportation.
53.6$5,000 the first year is from the environmental
53.7fund to prepare and submit a report to the
53.8chairs and ranking minority members of
53.9the senate and house of representatives
53.10committees and divisions with jurisdiction
53.11over the environment and natural resources,
53.12by December 1, 2013, with recommendations
53.13for a statewide recycling refund program
53.14for beverage containers that achieves an 80
53.15percent recycling rate.
53.16All money deposited in the environmental
53.17fund for the metropolitan solid waste
53.18landfill fee in accordance with Minnesota
53.19Statutes, section 473.843, and not otherwise
53.20appropriated, is appropriated for the purposes
53.21of Minnesota Statutes, section 473.844.
53.22Notwithstanding Minnesota Statutes, section
53.2316A.28, the appropriations encumbered on
53.24or before June 30, 2015, as contracts or
53.25grants for surface water and groundwater
53.26assessments; environmental assistance
53.27awarded under Minnesota Statutes, section
53.28115A.0716; technical and research assistance
53.29under Minnesota Statutes, section 115A.152;
53.30technical assistance under Minnesota
53.31Statutes, section 115A.52; and pollution
53.32prevention assistance under Minnesota
53.33Statutes, section 115D.04, are available until
53.34June 30, 2017.
53.35
Subd. 6.Administrative Support
395,000
420,000
54.1The commissioner shall submit the agency's
54.2budget for fiscal years 2016 and 2017 to
54.3the legislature in a manner that allows
54.4the legislature and public to understand
54.5the outcomes that will be achieved with
54.6the appropriations. The budget must be
54.7structured so that a significantly larger
54.8portion of the revenues from solid waste
54.9taxes are spent on solid waste activities.

54.10
Sec. 4. NATURAL RESOURCES
54.11
Subdivision 1.Total Appropriation
$
236,483,000
$
239,514,000
54.12
Appropriations by Fund
54.13
2014
2015
54.14
General
59,707,000
59,978,000
54.15
Natural Resources
85,104,000
87,864,000
54.16
Game and Fish
91,372,000
91,372,000
54.17
Remediation
100,000
100,000
54.18
Permanent School
200,000
200,000
54.19The amounts that may be spent for each
54.20purpose are specified in the following
54.21subdivisions.
54.22
54.23
Subd. 2.Land and Mineral Resources
Management
6,073,000
6,073,000
54.24
Appropriations by Fund
54.25
2014
2015
54.26
General
722,000
722,000
54.27
Natural Resources
3,700,000
3,700,000
54.28
Game and Fish
1,451,000
1,451,000
54.29
Permanent School
200,000
200,000
54.30$68,000 the first year and $68,000 the
54.31second year are for minerals cooperative
54.32environmental research, of which $34,000
54.33the first year and $34,000 the second year are
54.34available only as matched by $1 of nonstate
54.35money for each $1 of state money. The
54.36match may be cash or in-kind.
55.1$251,000 the first year and $251,000 the
55.2second year are for iron ore cooperative
55.3research. Of this amount, $200,000 each year
55.4is from the minerals management account
55.5in the natural resources fund. $175,000 the
55.6first year and $175,000 the second year are
55.7available only as matched by $1 of nonstate
55.8money for each $1 of state money. The match
55.9may be cash or in-kind. Any unencumbered
55.10balance from the first year does not cancel
55.11and is available in the second year.
55.12$2,779,000 the first year and $2,779,000
55.13the second year are from the minerals
55.14management account in the natural resources
55.15fund for use as provided in Minnesota
55.16Statutes, section 93.2236, paragraph (c),
55.17for mineral resource management, projects
55.18to enhance future mineral income, and
55.19projects to promote new mineral resource
55.20opportunities.
55.21$200,000 the first year and $200,000 the
55.22second year are from the state forest suspense
55.23account in the permanent school fund to
55.24accelerate land exchanges, land sales, and
55.25commercial leasing of school trust lands and
55.26to identify, evaluate, and lease construction
55.27aggregate located on school trust lands. This
55.28appropriation is to be used for securing
55.29long-term economic return from the
55.30school trust lands consistent with fiduciary
55.31responsibilities and sound natural resources
55.32conservation and management principles.
55.33$145,000 the first year and $145,000
55.34the second year are from the minerals
55.35management account in the natural resources
56.1fund for transfer to the commissioner of
56.2administration for the school trust lands
56.3director.
56.4The appropriations in Laws 2007, chapter 57,
56.5article 1, section 4, subdivision 2, as amended
56.6by Laws 2009, chapter 37, article 1, section
56.760, and as extended in Laws 2011, First
56.8Special Session chapter 2, article 1, section 4,
56.9subdivision 2, for support of the land records
56.10management system are available until spent.
56.11
Subd. 3.Ecological and Water Resources
28,227,000
30,987,000
56.12
Appropriations by Fund
56.13
2014
2015
56.14
General
11,262,000
11,262,000
56.15
Natural Resources
12,902,000
15,662,000
56.16
Game and Fish
4,063,000
4,063,000
56.17$2,942,000 the first year and $2,942,000 the
56.18second year are from the invasive species
56.19account in the natural resources fund and
56.20$3,706,000 the first year and $3,706,000 the
56.21second year are from the general fund for
56.22management, public awareness, assessment
56.23and monitoring research, and water access
56.24inspection to prevent the spread of invasive
56.25species; management of invasive plants in
56.26public waters; and management of terrestrial
56.27invasive species on state-administered lands.
56.28Of this amount, up to $200,000 each year
56.29is from the invasive species account in the
56.30natural resources fund for liability insurance
56.31coverage for Asian carp deterrent barriers.
56.32$5,000,000 the first year and $5,000,000 the
56.33second year are from the water management
56.34account in the natural resources fund for only
56.35the purposes specified in Minnesota Statutes,
56.36section 103G.27, subdivision 2. Of this
57.1amount, $190,000 the first year and $170,000
57.2the second year are for enhancements to
57.3the online system for water appropriation
57.4permits to account for preliminary approval
57.5requirements and related water appropriation
57.6permit activities.
57.7$53,000 the first year and $53,000 the
57.8second year are for a grant to the Mississippi
57.9Headwaters Board for up to 50 percent of the
57.10cost of implementing the comprehensive plan
57.11for the upper Mississippi within areas under
57.12the board's jurisdiction. By January 15, 2016,
57.13the board shall submit a report detailing the
57.14results achieved with this appropriation to
57.15the commissioner and the chairs and ranking
57.16minority members of the senate and house
57.17of representatives committees and divisions
57.18with jurisdiction over environment and
57.19natural resources policy and finance.
57.20$5,000 the first year and $5,000 the second
57.21year are for payment to the Leech Lake Band
57.22of Chippewa Indians to implement the band's
57.23portion of the comprehensive plan for the
57.24upper Mississippi.
57.25$264,000 the first year and $264,000 the
57.26second year are for grants for up to 50
57.27percent of the cost of implementation of
57.28the Red River mediation agreement. The
57.29commissioner shall submit a report by
57.30January 15, 2015, to the chairs of the
57.31legislative committees having primary
57.32jurisdiction over environment and natural
57.33resources policy and finance on the
57.34accomplishments achieved with the grants.
58.1$1,643,000 the first year and $1,643,000
58.2the second year are from the heritage
58.3enhancement account in the game and
58.4fish fund for only the purposes specified
58.5in Minnesota Statutes, section 297A.94,
58.6paragraph (e), clause (1).
58.7$1,223,000 the first year and $1,223,000 the
58.8second year are from the nongame wildlife
58.9management account in the natural resources
58.10fund for the purpose of nongame wildlife
58.11management. Notwithstanding Minnesota
58.12Statutes, section 290.431, $100,000 the first
58.13year and $100,000 the second year may
58.14be used for nongame wildlife information,
58.15education, and promotion.
58.16$2,500,000 the first year and $5,260,000 the
58.17second year are from the water management
58.18account in the natural resources fund for the
58.19following activities:
58.20(1) installation of additional groundwater
58.21monitoring wells;
58.22(2) increased financial reimbursement
58.23and technical support to soil and water
58.24conservation districts or other local units
58.25of government for groundwater level
58.26monitoring;
58.27(3) additional surface water monitoring and
58.28analysis, including installation of monitoring
58.29gauges;
58.30(4) additional groundwater analysis to
58.31assist with water appropriation permitting
58.32decisions;
59.1(5) additional permit application review
59.2incorporating surface water and groundwater
59.3technical analysis;
59.4(6) enhancement of precipitation data and
59.5analysis to improve the use of irrigation;
59.6(7) enhanced information technology,
59.7including electronic permitting and
59.8integrated data systems; and
59.9(8) increased compliance and monitoring.
59.10$1,000,000 the first year and $1,000,000
59.11the second year are for grants to local units
59.12of government and tribes to prevent the
59.13spread of aquatic invasive species, including
59.14inspection and decontamination programs.
59.15
Subd. 4.Forest Management
34,310,000
34,260,000
59.16
Appropriations by Fund
59.17
2014
2015
59.18
General
21,900,000
21,850,000
59.19
Natural Resources
11,123,000
11,123,000
59.20
Game and Fish
1,287,000
1,287,000
59.21$7,145,000 the first year and $7,145,000
59.22the second year are for prevention,
59.23presuppression, and suppression costs of
59.24emergency firefighting and other costs
59.25incurred under Minnesota Statutes, section
59.2688.12. The amount necessary to pay for
59.27presuppression and suppression costs during
59.28the biennium is appropriated from the general
59.29fund.
59.30By January 15 of each year, the commissioner
59.31of natural resources shall submit a report to
59.32the chairs and ranking minority members
59.33of the house of representatives and senate
59.34committees and divisions having jurisdiction
59.35over environment and natural resources
60.1finance, identifying all firefighting costs
60.2incurred and reimbursements received in
60.3the prior fiscal year. These appropriations
60.4may not be transferred. Any reimbursement
60.5of firefighting expenditures made to the
60.6commissioner from any source other than
60.7federal mobilizations shall be deposited into
60.8the general fund.
60.9$11,123,000 the first year and $11,123,000
60.10the second year are from the forest
60.11management investment account in the
60.12natural resources fund for only the purposes
60.13specified in Minnesota Statutes, section
60.1489.039, subdivision 2.
60.15$1,287,000 the first year and $1,287,000
60.16the second year are from the game and fish
60.17fund to advance ecological classification
60.18systems (ECS) scientific management tools
60.19for forest and invasive species management.
60.20This appropriation is from revenue deposited
60.21in the game and fish fund under Minnesota
60.22Statutes, section 297A.94, paragraph (e),
60.23clause (1).
60.24$580,000 the first year and $580,000 the
60.25second year are for the Forest Resources
60.26Council for implementation of the
60.27Sustainable Forest Resources Act.
60.28$250,000 the first year and $250,000 the
60.29second year are for the FORIST system.
60.30$50,000 the first year is for development of
60.31a plan and recommendations, in consultation
60.32with the University of Minnesota,
60.33Department of Forest Resources, on utilizing
60.34the state forest nurseries to: ensure the
60.35long-term availability of ecologically
61.1appropriate and genetically diverse native
61.2forest seed and seedlings to support state
61.3conservation projects and initiatives;
61.4protect the genetic fitness and resilience of
61.5native forest ecosystems; and support tree
61.6improvement research to address evolving
61.7pressures such as invasive species and
61.8climate change. By December 31, 2013,
61.9the commissioner shall submit a report with
61.10the plan and recommendations to the chairs
61.11and ranking minority members of the senate
61.12and house of representatives committees
61.13and divisions with jurisdiction over natural
61.14resources. The report shall address funding
61.15to improve state forest nursery and tree
61.16improvement capabilities. The report shall
61.17also provide updated recommendations from
61.18those contained in the budget and financial
61.19plan required under Laws 2011, First Special
61.20Session chapter 2, article 4, section 30.
61.21
Subd. 5.Parks and Trails Management
68,202,000
67,902,000
61.22
Appropriations by Fund
61.23
2014
2015
61.24
General
20,130,000
20,130,000
61.25
Natural Resources
45,813,000
45,513,000
61.26
Game and Fish
2,259,000
2,259,000
61.27$1,075,000 the first year and $1,075,000 the
61.28second year are from the water recreation
61.29account in the natural resources fund for
61.30enhancing public water access facilities.
61.31This appropriation is not available until the
61.32commissioner develops and implements
61.33design standards and best management
61.34practices for public water access sites that
61.35maintain and improve water quality by
61.36avoiding shoreline erosion and runoff.
62.1$300,000 the first year is from the water
62.2recreation account in the natural resources
62.3fund for construction of restroom facilities
62.4at the public water access for Crane Lake
62.5on Handberg Road. This is a onetime
62.6appropriation and is available until the
62.7construction is completed.
62.8$5,740,000 the first year and $5,740,000 the
62.9second year are from the natural resources
62.10fund for state trail, park, and recreation area
62.11operations. This appropriation is from the
62.12revenue deposited in the natural resources
62.13fund under Minnesota Statutes, section
62.14297A.94, paragraph (e), clause (2).
62.15$1,005,000 the first year and $1,005,000 the
62.16second year are from the natural resources
62.17fund for trail grants to local units of
62.18government on land to be maintained for at
62.19least 20 years for the purposes of the grants.
62.20This appropriation is from the revenue
62.21deposited in the natural resources fund
62.22under Minnesota Statutes, section 297A.94,
62.23paragraph (e), clause (4). Any unencumbered
62.24balance does not cancel at the end of the first
62.25year and is available for the second year.
62.26$8,424,000 the first year and $8,424,000
62.27the second year are from the snowmobile
62.28trails and enforcement account in the
62.29natural resources fund for the snowmobile
62.30grants-in-aid program. Any unencumbered
62.31balance does not cancel at the end of the first
62.32year and is available for the second year.
62.33$1,460,000 the first year and $1,460,000 the
62.34second year are from the natural resources
62.35fund for the off-highway vehicle grants-in-aid
63.1program. Of this amount, $1,210,000 each
63.2year is from the all-terrain vehicle account;
63.3$150,000 each year is from the off-highway
63.4motorcycle account; and $100,000 each year
63.5is from the off-road vehicle account. Any
63.6unencumbered balance does not cancel at the
63.7end of the first year and is available for the
63.8second year.
63.9$75,000 the first year and $75,000 the second
63.10year are from the cross-country ski account
63.11in the natural resources fund for grooming
63.12and maintaining cross-country ski trails in
63.13state parks, trails, and recreation areas.
63.14$350,000 the first year and $350,000 the
63.15second year are for prairie restorations in
63.16state parks and trails located in various parts
63.17of the state that are visible to the public under
63.18the pollinator habitat program established
63.19under Minnesota Statutes, section 84.973.
63.20$250,000 the first year and $250,000 the
63.21second year are from the state land and
63.22water conservation account (LAWCON)
63.23in the natural resources fund for priorities
63.24established by the commissioner for eligible
63.25state projects and administrative and
63.26planning activities consistent with Minnesota
63.27Statutes, section 84.0264, and the federal
63.28Land and Water Conservation Fund Act.
63.29Any unencumbered balance does not cancel
63.30at the end of the first year and is available for
63.31the second year.
63.32The appropriation in Laws 2009, chapter
63.3337, article 1, section 4, subdivision 5, from
63.34the natural resources fund from the revenue
63.35deposited under Minnesota Statutes, section
64.1297A.94, paragraph (e), clause (4), for local
64.2grants is available until June 30, 2014.
64.3
Subd. 6.Fish and Wildlife Management
62,775,000
62,775,000
64.4
Appropriations by Fund
64.5
2014
2015
64.6
Natural Resources
1,906,000
1,906,000
64.7
Game and Fish
60,869,000
60,869,000
64.8$8,167,000 the first year and $8,167,000
64.9the second year are from the heritage
64.10enhancement account in the game and fish
64.11fund only for activities specified in Minnesota
64.12Statutes, section 297A.94, paragraph (e),
64.13clause (1). Notwithstanding Minnesota
64.14Statutes, section 297A.94, five percent of
64.15this appropriation may be used for expanding
64.16hunter and angler recruitment and retention
64.17activities that emphasize the recruitment and
64.18retention of underrepresented groups.
64.19Notwithstanding Minnesota Statutes, section
64.2084.943, $13,000 the first year and $13,000
64.21the second year from the critical habitat
64.22private sector matching account may be used
64.23to publicize the critical habitat license plate
64.24match program.
64.25
Subd. 7.Enforcement
36,558,000
36,558,000
64.26
Appropriations by Fund
64.27
2014
2015
64.28
General
5,375,000
5,375,000
64.29
Natural Resources
9,640,000
9,640,000
64.30
Game and Fish
21,443,000
21,443,000
64.31
Remediation
100,000
100,000
64.32$1,638,000 the first year and $1,638,000 the
64.33second year are from the general fund for
64.34enforcement efforts to prevent the spread of
64.35aquatic invasive species.
65.1$1,450,000 the first year and $1,450,000
65.2the second year are from the heritage
65.3enhancement account in the game and
65.4fish fund for only the purposes specified
65.5in Minnesota Statutes, section 297A.94,
65.6paragraph (e), clause (1).
65.7$250,000 the first year and $250,000 the
65.8second year are for the conservation officer
65.9pre-employment education program. Of this
65.10amount, $30,000 each year is from the water
65.11recreation account, $13,000 each year is
65.12from the snowmobile account, and $20,000
65.13each year is from the all-terrain vehicle
65.14account in the natural resources fund; and
65.15$187,000 each year is from the game and fish
65.16fund, of which $17,000 each year is from
65.17revenue deposited to the game and fish fund
65.18under Minnesota Statutes, section 297A.94,
65.19paragraph (e), clause (1).
65.20$1,082,000 the first year and $1,082,000 the
65.21second year are from the water recreation
65.22account in the natural resources fund for
65.23grants to counties for boat and water safety.
65.24Any unencumbered balance does not cancel
65.25at the end of the first year and is available for
65.26the second year.
65.27$315,000 the first year and $315,000 the
65.28second year are from the snowmobile
65.29trails and enforcement account in the
65.30natural resources fund for grants to local
65.31law enforcement agencies for snowmobile
65.32enforcement activities. Any unencumbered
65.33balance does not cancel at the end of the first
65.34year and is available for the second year.
66.1$250,000 the first year and $250,000 the
66.2second year are from the all-terrain vehicle
66.3account for grants to qualifying organizations
66.4to assist in safety and environmental
66.5education and monitoring trails on public
66.6lands under Minnesota Statutes, section
66.784.9011. Grants issued under this paragraph:
66.8(1) must be issued through a formal
66.9agreement with the organization; and
66.10(2) must not be used as a substitute for
66.11traditional spending by the organization.
66.12By December 15 each year, an organization
66.13receiving a grant under this paragraph shall
66.14report to the commissioner with details on
66.15expenditures and outcomes from the grant.
66.16Of this appropriation, $25,000 each year
66.17is for administration of these grants. Any
66.18unencumbered balance does not cancel at the
66.19end of the first year and is available for the
66.20second year.
66.21$510,000 the first year and $510,000
66.22the second year are from the natural
66.23resources fund for grants to county law
66.24enforcement agencies for off-highway
66.25vehicle enforcement and public education
66.26activities based on off-highway vehicle use
66.27in the county. Of this amount, $498,000 each
66.28year is from the all-terrain vehicle account;
66.29$11,000 each year is from the off-highway
66.30motorcycle account; and $1,000 each year
66.31is from the off-road vehicle account. The
66.32county enforcement agencies may use
66.33money received under this appropriation
66.34to make grants to other local enforcement
66.35agencies within the county that have a high
66.36concentration of off-highway vehicle use.
67.1Of this appropriation, $25,000 each year
67.2is for administration of these grants. Any
67.3unencumbered balance does not cancel at the
67.4end of the first year and is available for the
67.5second year.
67.6$719,000 the first year and $719,000 the
67.7second year are for development and
67.8maintenance of a records management
67.9system capable of providing real time data
67.10with global positioning system information.
67.11Of this amount, $480,000 each year is from
67.12the general fund, $119,000 each year is
67.13from the game and fish fund, and $120,000
67.14each year is from the heritage enhancement
67.15account in the game and fish fund.
67.16
Subd. 8.Operations Support
638,000
959,000
67.17
Appropriations by Fund
67.18
2014
2015
67.19
General Fund
318,000
639,000
67.20
Natural Resources
320,000
320,000
67.21$320,000 the first year and $320,000 the
67.22second year are from the natural resources
67.23fund for grants to be divided equally between
67.24the city of St. Paul for the Como Park Zoo
67.25and Conservatory and the city of Duluth
67.26for the Duluth Zoo. This appropriation
67.27is from the revenue deposited to the fund
67.28under Minnesota Statutes, section 297A.94,
67.29paragraph (e), clause (5).
67.30$300,000 the first year and $300,000 the
67.31second year are from the special revenue fund
67.32to improve data analytics. The commissioner
67.33may bill the divisions of the agency an
67.34appropriate share of costs associated with
67.35this project. Any information technology
68.1development, support, or costs necessary for
68.2this project shall be incorporated into the
68.3agency's service level agreement with and
68.4paid to the Office of Enterprise Technology.

68.5
68.6
Sec. 5. BOARD OF WATER AND SOIL
RESOURCES
$
13,472,000
$
13,502,000
68.7$3,423,000 the first year and $3,423,000 the
68.8second year are for natural resources block
68.9grants to local governments. Grants must be
68.10matched with a combination of local cash or
68.11in-kind contributions. The base grant portion
68.12related to water planning must be matched
68.13by an amount as specified by Minnesota
68.14Statutes, section 103B.3369. The board may
68.15reduce the amount of the natural resources
68.16block grant to a county by an amount equal to
68.17any reduction in the county's general services
68.18allocation to a soil and water conservation
68.19district from the county's previous year
68.20allocation when the board determines that
68.21the reduction was disproportionate.
68.22$3,116,000 the first year and $3,116,000
68.23the second year are for grants requested
68.24by soil and water conservation districts for
68.25general purposes, nonpoint engineering, and
68.26implementation of the reinvest in Minnesota
68.27reserve program. Upon approval of the
68.28board, expenditures may be made from these
68.29appropriations for supplies and services
68.30benefiting soil and water conservation
68.31districts. Any district requesting a grant
68.32under this paragraph shall maintain a Web
68.33site that publishes, at a minimum, its annual
68.34report, annual audit, annual budget, and
68.35meeting notices and minutes.
69.1$1,602,000 the first year and $1,662,000 the
69.2second year are for the following cost-share
69.3programs:
69.4(1) $302,000 each year is for feedlot water
69.5quality grants for feedlots under 300 animal
69.6units in areas where there are impaired
69.7waters;
69.8(2) $1,200,000 each year is for soil and water
69.9conservation district cost-sharing contracts
69.10for erosion control, nutrient and manure
69.11management, vegetative buffers, and water
69.12quality management; and
69.13(3) $100,000 each year is for county
69.14cooperative weed management programs and
69.15to restore native plants in selected invasive
69.16species management sites by providing local
69.17native seeds and plants to landowners for
69.18implementation.
69.19The board shall submit a report to the
69.20commissioner of the Pollution Control
69.21Agency on the status of subsurface sewage
69.22treatment systems in order to ensure a single,
69.23comprehensive inventory of the systems for
69.24planning purposes.
69.25$386,000 the first year and $386,000
69.26the second year are for implementation,
69.27enforcement, and oversight of the Wetland
69.28Conservation Act.
69.29$166,000 the first year and $166,000
69.30the second year are to provide technical
69.31assistance to local drainage management
69.32officials and for the costs of the Drainage
69.33Work Group.
70.1$100,000 the first year and $100,000
70.2the second year are for a grant to the
70.3Red River Basin Commission for water
70.4quality and floodplain management,
70.5including administration of programs. This
70.6appropriation must be matched by nonstate
70.7funds. If the appropriation in either year is
70.8insufficient, the appropriation in the other
70.9year is available for it.
70.10$120,000 the first year and $60,000
70.11the second year are for grants to Area II
70.12Minnesota River Basin Projects for floodplain
70.13management. The area shall transition to a
70.14watershed district by July 1, 2015.
70.15Notwithstanding Minnesota Statutes, section
70.16103C.501, the board may shift cost-share
70.17funds in this section and may adjust the
70.18technical and administrative assistance
70.19portion of the grant funds to leverage
70.20federal or other nonstate funds or to address
70.21high-priority needs identified in local water
70.22management plans or comprehensive water
70.23management plans.
70.24$450,000 the first year and $450,000 the
70.25second year are for assistance and grants to
70.26local governments to transition local water
70.27management plans to a watershed approach
70.28as provided for in Minnesota Statutes,
70.29chapters 103B, 103C, 103D, and 114D.
70.30$125,000 the first year and $125,000 the
70.31second year are to implement internal control
70.32policies and provide related oversight and
70.33accountability for agency programs.
70.34$310,000 the first year and $310,000 the
70.35second year are to evaluate performance,
71.1financial, and activity information for local
71.2water management entities as prescribed in
71.3Minnesota Statutes, section 103B.102.
71.4The appropriations for grants in this
71.5section are available until expended. If an
71.6appropriation for grants in either year is
71.7insufficient, the appropriation in the other
71.8year is available for it.

71.9
Sec. 6. METROPOLITAN COUNCIL
$
8,890,000
$
8,890,000
71.10
Appropriations by Fund
71.11
2014
2015
71.12
General
3,220,000
3,220,000
71.13
Natural Resources
5,670,000
5,670,000
71.14$2,870,000 the first year and $2,870,000 the
71.15second year are for metropolitan area regional
71.16parks operation and maintenance according
71.17to Minnesota Statutes, section 473.351.
71.18$5,670,000 the first year and $5,670,000 the
71.19second year are from the natural resources
71.20fund for metropolitan area regional parks
71.21and trails maintenance and operations. This
71.22appropriation is from the revenue deposited
71.23in the natural resources fund under Minnesota
71.24Statutes, section 297A.94, paragraph (e),
71.25clause (3).
71.26$350,000 the first year and $350,000 the
71.27second year are for grants to implementing
71.28agencies to acquire and install solar energy
71.29panels made in Minnesota in metropolitan
71.30regional parks and trails. An implementing
71.31agency receiving a grant under this
71.32appropriation shall provide signage near
71.33the solar equipment installed that provides
71.34education on solar energy.

72.1
72.2
Sec. 7. CONSERVATION CORPS
MINNESOTA
$
945,000
$
945,000
72.3
Appropriations by Fund
72.4
2014
2015
72.5
General
455,000
455,000
72.6
Natural Resources
490,000
490,000
72.7Conservation Corps Minnesota may receive
72.8money appropriated from the natural
72.9resources fund under this section only
72.10as provided in an agreement with the
72.11commissioner of natural resources.

72.12
Sec. 8. ZOOLOGICAL BOARD
$
5,637,000
$
5,690,000
72.13
Appropriations by Fund
72.14
2014
2015
72.15
General
5,477,000
5,530,000
72.16
Natural Resources
160,000
160,000
72.17$160,000 the first year and $160,000 the
72.18second year are from the natural resources
72.19fund from the revenue deposited under
72.20Minnesota Statutes, section 297A.94,
72.21paragraph (e), clause (5).

72.22ARTICLE 4
72.23ENVIRONMENT AND NATURAL RESOURCES POLICY

72.24    Section 1. Minnesota Statutes 2012, section 84.027, is amended by adding a
72.25subdivision to read:
72.26    Subd. 19. Federal law compliance. Notwithstanding any law to the contrary,
72.27the commissioner may establish, by written order, policies for the use and operation of
72.28other power-driven mobility devices, as defined under Code of Federal Regulations, title
72.2928, section 35.104, on lands and in facilities administered by the commissioner for the
72.30purposes of implementing the Americans with Disabilities Act, United States Code, title
72.3142, section 12101 et seq. These policies are exempt from the rulemaking provisions of
72.32chapter 14 and section 14.386 does not apply.

72.33    Sec. 2. [84.633] EXCHANGE OF ROAD EASEMENTS.
73.1    Subdivision 1. Authority. The commissioner of natural resources, on behalf of
73.2the state, may convey a road easement according to this section for access across state
73.3land under the commissioner's jurisdiction in exchange for a road easement for access to
73.4property owned by the United States, the state of Minnesota or any of its subdivisions, or a
73.5private party. The exercise of the easement across state land must not cause significant
73.6adverse environmental or natural resources management impacts.
73.7    Subd. 2. Substantially equal acres. The acres covered by the state easement
73.8conveyed by the commissioner must be substantially equal to the acres covered by the
73.9easement being received by the commissioner. For purposes of this section, "substantially
73.10equal" means that the acres do not differ by more than 20 percent. The commissioner's
73.11finding of substantially equal acres is in lieu of an appraisal or other determination of
73.12value of the lands.
73.13    Subd. 3. School trust lands. If the commissioner conveys a road easement over
73.14school trust land to a nongovernmental entity, the term of the road easement is limited
73.15to 50 years. The easement exchanged with the state may be limited to 50 years or may
73.16be perpetual.
73.17    Subd. 4. Terms and conditions. The commissioner may impose terms and
73.18conditions of use as necessary and appropriate under the circumstances. The state may
73.19accept an easement with similar terms and conditions as the state easement.
73.20    Subd. 5. Survey. If the commissioner determines that a survey is required, the
73.21governmental unit or private landowner shall pay to the commissioner a survey fee of not
73.22less than one half of the cost of the survey as determined by the commissioner.
73.23    Subd. 6. Application fee. When a private landowner or governmental unit, except
73.24the state, presents to the commissioner an offer to exchange road easements, the private
73.25landowner or governmental unit shall pay an application fee as provided under section
73.2684.63 to cover reasonable costs for reviewing the application and preparing the easements.
73.27    Subd. 7. Title. If the commissioner determines it is necessary to obtain an opinion
73.28as to the title of the land being encumbered by the easement that will be received by the
73.29commissioner, the governmental unit or private landowner shall submit an abstract of title
73.30or other title information sufficient to determine possession of the land, improvements,
73.31liens, encumbrances, and other matters affecting title.
73.32    Subd. 8. Disposition of fees. (a) Any fee paid under subdivision 5 must be credited
73.33to the account from which expenses are or will be paid and the fee is appropriated for the
73.34expenditures in the same manner as other money in the account.
73.35(b) Any fee paid under subdivision 6 must be deposited in the land management
73.36account in the natural resources fund and is appropriated to the commissioner to cover the
74.1reasonable costs incurred for preparing and issuing the state road easement and accepting
74.2the road easement from the private landowner or governmental entity.

74.3    Sec. 3. Minnesota Statutes 2012, section 84.788, is amended by adding a subdivision
74.4to read:
74.5    Subd. 13. Grant-in-aid donations. (a) At the time of registration, a person
74.6may agree to add a donation of any amount to the off-highway motorcycle registration
74.7fee for grant-in-aid off-highway motorcycle trails. An additional commission may not
74.8be assessed on the donation. The commissioner shall offer the opportunity to make a
74.9donation under this subdivision to all registrants and shall issue a recognition grant-in-aid
74.10trail sticker to registrants contributing $20 or more.
74.11(b) Money donated under this subdivision shall be deposited in the off-highway
74.12motorcycle account in the natural resources fund and shall be used for the grant-in-aid
74.13program as provided under section 84.794, subdivision 2, paragraph (a), clause (3).

74.14    Sec. 4. Minnesota Statutes 2012, section 84.794, subdivision 1, is amended to read:
74.15    Subdivision 1. Registration revenue. Fees from the registration of off-highway
74.16motorcycles, donations received under section 84.788, subdivision 13, and the unrefunded
74.17gasoline tax attributable to off-highway motorcycle use under section 296A.18 must be
74.18deposited in the state treasury and credited to the off-highway motorcycle account in
74.19the natural resources fund.

74.20    Sec. 5. Minnesota Statutes 2012, section 84.798, is amended by adding a subdivision
74.21to read:
74.22    Subd. 11. Grant-in-aid trail donations. (a) At the time of registration, a person
74.23may agree to add a donation of any amount to the off-road vehicle registration fee for
74.24grant-in-aid off-road vehicle trails. An additional commission may not be assessed on the
74.25donation. The commissioner shall offer the opportunity to make a donation under this
74.26subdivision to all registrants and shall issue a recognition grant-in-aid trail sticker to
74.27registrants contributing $20 or more.
74.28(b) Money donated under this subdivision shall be deposited in the off-road vehicle
74.29account in the natural resources fund and shall be used for the grant-in-aid program as
74.30provided under section 84.803, subdivision 2, clause (3).

74.31    Sec. 6. Minnesota Statutes 2012, section 84.803, subdivision 1, is amended to read:
75.1    Subdivision 1. Registration revenue. Fees from the registration of off-road
75.2vehicles, donations received under section 84.798, subdivision 11, and unrefunded
75.3gasoline tax attributable to off-road vehicle use under section 296A.18 must be deposited in
75.4the state treasury and credited to the off-road vehicle account in the natural resources fund.

75.5    Sec. 7. Minnesota Statutes 2012, section 84.82, is amended by adding a subdivision to
75.6read:
75.7    Subd. 2a. Limited nontrail use registration. A snowmobile may be registered for
75.8limited nontrail use. A snowmobile registered under this subdivision may be used solely
75.9for transportation on the frozen surface of public water for purposes of ice fishing and may
75.10not otherwise be operated on a state or grant-in-aid snowmobile trail. The fee for a limited
75.11nontrail use registration is $45 for three years. A limited nontrail use registration is not
75.12transferable. In addition to other penalties prescribed by law, the penalty for violation of
75.13this subdivision is immediate revocation of the limited nontrail use registration. The
75.14commissioner shall ensure that the registration sticker provided for limited nontrail use is
75.15of a different color and is distinguishable from other snowmobile registration and state
75.16trail stickers provided.

75.17    Sec. 8. Minnesota Statutes 2012, section 84.82, is amended by adding a subdivision to
75.18read:
75.19    Subd. 12. Grant-in-aid trail donations. (a) At the time of registration, a person
75.20may agree to add a donation of any amount to the snowmobile registration fee for
75.21grant-in-aid snowmobile trails. An additional commission may not be assessed on the
75.22donation. The commissioner shall offer the opportunity to make a donation under this
75.23subdivision to all registrants and shall issue a recognition grant-in-aid trail sticker to
75.24registrants contributing $20 or more.
75.25(b) Money donated under this subdivision shall be deposited in the snowmobile trails
75.26and enforcement account in the natural resources fund and shall be used for the grant-in-aid
75.27program as provided under section 84.83, subdivision 3, paragraph (a), clause (1).

75.28    Sec. 9. Minnesota Statutes 2012, section 84.83, subdivision 2, is amended to read:
75.29    Subd. 2. Money deposited in the account. Fees from the registration of
75.30snowmobiles and from the issuance of snowmobile state trail stickers, donations received
75.31under section 84.82, subdivision 12, and the unrefunded gasoline tax attributable to
75.32snowmobile use pursuant to section 296A.18 shall be deposited in the state treasury and
75.33credited to the snowmobile trails and enforcement account.

76.1    Sec. 10. Minnesota Statutes 2012, section 84.922, is amended by adding a subdivision
76.2to read:
76.3    Subd. 13. Grant-in-aid trail contributions. (a) At the time of registration,
76.4the commissioner shall offer a registrant the opportunity to make a contribution for
76.5grant-in-aid trails. The commissioner shall issue a recognition grant-in-aid trail sticker to
76.6registrants contributing $20 or more.
76.7(b) Money contributed under this subdivision shall be deposited in the state treasury
76.8and credited to the all-terrain vehicle account and is dedicated for the grant-in-aid trail
76.9program.

76.10    Sec. 11. Minnesota Statutes 2012, section 84.922, is amended by adding a subdivision
76.11to read:
76.12    Subd. 14. No registration weekend. The commissioner shall designate by rule one
76.13weekend each year when, notwithstanding subdivision 1, an all-terrain vehicle may be
76.14operated on state and grant-in-aid all-terrain vehicle trails without a registration issued
76.15under this section. Nonresidents may participate during the designated weekend without a
76.16state trail pass required under section 84.9275.
76.17EFFECTIVE DATE.This section is effective the day following final enactment.

76.18    Sec. 12. Minnesota Statutes 2012, section 84.9256, subdivision 1, is amended to read:
76.19    Subdivision 1. Prohibitions on youthful operators. (a) Except for operation on
76.20public road rights-of-way that is permitted under section 84.928 and as provided under
76.21paragraph (j), a driver's license issued by the state or another state is required to operate an
76.22all-terrain vehicle along or on a public road right-of-way.
76.23    (b) A person under 12 years of age shall not:
76.24    (1) make a direct crossing of a public road right-of-way;
76.25    (2) operate an all-terrain vehicle on a public road right-of-way in the state; or
76.26    (3) operate an all-terrain vehicle on public lands or waters, except as provided in
76.27paragraph (f).
76.28    (c) Except for public road rights-of-way of interstate highways, a person 12 years
76.29of age but less than 16 years may make a direct crossing of a public road right-of-way
76.30of a trunk, county state-aid, or county highway or operate on public lands and waters or
76.31state or grant-in-aid trails, only if that person possesses a valid all-terrain vehicle safety
76.32certificate issued by the commissioner and is accompanied by a person 18 years of age or
76.33older who holds a valid driver's license.
77.1    (d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years
77.2old, but less than 16 18 years old, must:
77.3    (1) successfully complete the safety education and training program under section
77.484.925 , subdivision 1, including a riding component; and
77.5    (2) be able to properly reach and control the handle bars and reach the foot pegs
77.6while sitting upright on the seat of the all-terrain vehicle.
77.7    (e) A person at least 11 years of age may take the safety education and training
77.8program and may receive an all-terrain vehicle safety certificate under paragraph (d), but
77.9the certificate is not valid until the person reaches age 12.
77.10    (f) A person at least ten years of age but under 12 years of age may operate an
77.11all-terrain vehicle with an engine capacity up to 90cc on public lands or waters if
77.12accompanied by a parent or legal guardian.
77.13    (g) A person under 15 years of age shall not operate a class 2 all-terrain vehicle.
77.14    (h) A person under the age of 16 may not operate an all-terrain vehicle on public
77.15lands or waters or on state or grant-in-aid trails if the person cannot properly reach and
77.16control the handle bars and reach the foot pegs while sitting upright on the seat of the
77.17all-terrain vehicle.
77.18(i) Notwithstanding paragraph (c), a nonresident at least 12 years old, but less than
77.1916 years old, may make a direct crossing of a public road right-of-way of a trunk, county
77.20state-aid, or county highway or operate an all-terrain vehicle on public lands and waters
77.21or state or grant-in-aid trails if:
77.22(1) the nonresident youth has in possession evidence of completing an all-terrain
77.23safety course offered by the ATV Safety Institute or another state as provided in section
77.2484.925 , subdivision 3; and
77.25(2) the nonresident youth is accompanied by a person 18 years of age or older who
77.26holds a valid driver's license.
77.27(j) A person 12 years of age but less than 16 years of age may operate an all-terrain
77.28vehicle on the bank, slope, or ditch of a public road right-of-way as permitted under
77.29section 84.928 if the person:
77.30(1) possesses a valid all-terrain vehicle safety certificate issued by the commissioner;
77.31and
77.32(2) is accompanied by a parent or legal guardian on a separate all-terrain vehicle.

77.33    Sec. 13. Minnesota Statutes 2012, section 84.928, subdivision 1, is amended to read:
77.34    Subdivision 1. Operation on roads and rights-of-way. (a) Unless otherwise
77.35allowed in sections 84.92 to 84.928, a person shall not operate an all-terrain vehicle in
78.1this state along or on the roadway, shoulder, or inside bank or slope of a public road
78.2right-of-way of a trunk, county state-aid, or county highway.
78.3    (b) A person may operate a class 1 all-terrain vehicle in the ditch or the outside
78.4bank or slope of a trunk, county state-aid, or county highway unless prohibited under
78.5paragraph (d) or (f).
78.6    (c) A person may operate a class 2 all-terrain vehicle:
78.7    (1) within the public road right-of-way of a county state-aid or county highway on
78.8the extreme right-hand side of the road and left turns may be made from any part of
78.9the road if it is safe to do so under the prevailing conditions, unless prohibited under
78.10paragraph (d) or (f).;
78.11    (2) on the bank, slope, or ditch of a public road right-of-way of a trunk highway,
78.12but only to access businesses or make trail connections, and left turns may be made from
78.13any part of the road if it is safe to do so under the prevailing conditions, unless prohibited
78.14under paragraph (d) or (f); and
78.15    (3) A person may operate a class 2 all-terrain vehicle on the bank or ditch of a
78.16public road right-of-way:
78.17    (i) on a designated class 2 all-terrain vehicle trail.; or
78.18    (ii) to access businesses or make trail connections when operation within the public
78.19road right-of-way is unsafe.
78.20    (d) A road authority as defined under section 160.02, subdivision 25, may after a
78.21public hearing restrict the use of all-terrain vehicles in the public road right-of-way under
78.22its jurisdiction.
78.23    (e) The restrictions in paragraphs (a), (d), (h), (i), and (j) do not apply to the
78.24operation of an all-terrain vehicle on the shoulder, inside bank or slope, ditch, or outside
78.25bank or slope of a trunk, interstate, county state-aid, or county highway:
78.26(1) that is part of a funded grant-in-aid trail; or
78.27(2) when the all-terrain vehicle is owned by or operated under contract with a publicly
78.28or privately owned utility or pipeline company and used for work on utilities or pipelines.
78.29    (f) The commissioner may limit the use of a right-of-way for a period of time if the
78.30commissioner determines that use of the right-of-way causes:
78.31    (1) degradation of vegetation on adjacent public property;
78.32    (2) siltation of waters of the state;
78.33    (3) impairment or enhancement to the act of taking game; or
78.34    (4) a threat to safety of the right-of-way users or to individuals on adjacent public
78.35property.
79.1    The commissioner must notify the road authority as soon as it is known that a closure
79.2will be ordered. The notice must state the reasons and duration of the closure.
79.3    (g) A person may operate an all-terrain vehicle registered for private use and used
79.4for agricultural purposes on a public road right-of-way of a trunk, county state-aid, or
79.5county highway in this state if the all-terrain vehicle is operated on the extreme right-hand
79.6side of the road, and left turns may be made from any part of the road if it is safe to do so
79.7under the prevailing conditions.
79.8    (h) A person shall not operate an all-terrain vehicle within the public road
79.9right-of-way of a trunk, county state-aid, or county highway from April 1 to August 1 in
79.10the agricultural zone unless the vehicle is being used exclusively as transportation to and
79.11from work on agricultural lands. This paragraph does not apply to an agent or employee
79.12of a road authority, as defined in section 160.02, subdivision 25, or the Department of
79.13Natural Resources when performing or exercising official duties or powers.
79.14    (i) A person shall not operate an all-terrain vehicle within the public road right-of-way
79.15of a trunk, county state-aid, or county highway between the hours of one-half hour after
79.16sunset to one-half hour before sunrise, except on the right-hand side of the right-of-way
79.17and in the same direction as the highway traffic on the nearest lane of the adjacent roadway.
79.18    (j) A person shall not operate an all-terrain vehicle at any time within the
79.19right-of-way of an interstate highway or freeway within this state.

79.20    Sec. 14. [84.973] POLLINATOR HABITAT PROGRAM.
79.21(a) The commissioner shall develop best management practices and habitat
79.22restoration guidelines for pollinator habitat enhancement. Best management practices
79.23and guidelines developed under this section must be used for all projects on state lands
79.24and must be a condition of any contract for habitat enhancement or restoration of lands
79.25under the commissioner's control.
79.26(b) Prairie restorations must include an appropriate diversity of native species
79.27selected to provide habitat for pollinators throughout the growing season.

79.28    Sec. 15. Minnesota Statutes 2012, section 84D.108, subdivision 2, is amended to read:
79.29    Subd. 2. Permit requirements. (a) Service providers must complete invasive
79.30species training provided by the commissioner and pass an examination to qualify for a
79.31permit. Service provider permits are valid for three calendar years.
79.32(b) A $50 application and testing fee is required for service provider permit
79.33applications.
80.1(c) Persons working for a permittee must satisfactorily complete aquatic invasive
80.2species-related training provided by the commissioner, except as provided under
80.3paragraph (d).
80.4(d) A person working for and supervised by a permittee is not required to complete
80.5the training under paragraph (c) if the water-related equipment or other water-related
80.6structures remain on the riparian property owned or controlled by the permittee and are
80.7only removed from and placed into the same water of the state.

80.8    Sec. 16. Minnesota Statutes 2012, section 85.015, subdivision 13, is amended to read:
80.9    Subd. 13. Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton,
80.10Koochiching, and Itasca Counties. (a)(1) The Taconite Trail shall originate at Ely in St.
80.11Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to
80.12McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in
80.13Itasca County and there terminate;
80.14(2) The C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County
80.15and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand
80.16Marais in Cook County, thence northeasterly to the international boundary in the vicinity
80.17of the north shore of Lake Superior, and there terminate;
80.18(3) The Grand Marais to International Falls Trail shall originate in Grand Marais
80.19in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area,
80.20to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to
80.21Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St.
80.22Louis County to International Falls in Koochiching County, and there terminate;
80.23(4) The Matthew Lourey Trail shall originate in Duluth in St. Louis County and
80.24extend southerly to St. Croix Chengwatana State Forest in Pine County.
80.25(b) The trails shall be developed primarily for riding and hiking.
80.26(c) In addition to the authority granted in subdivision 1, lands and interests in lands
80.27for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring
80.28any land or interest in land by eminent domain the commissioner of administration shall
80.29obtain the approval of the governor. The governor shall consult with the Legislative
80.30Advisory Commission before granting approval. Recommendations of the Legislative
80.31Advisory Commission shall be advisory only. Failure or refusal of the commission to
80.32make a recommendation shall be deemed a negative recommendation.

80.33    Sec. 17. Minnesota Statutes 2012, section 85.052, subdivision 6, is amended to read:
81.1    Subd. 6. State park reservation system. (a) The commissioner may, by written
81.2order, develop reasonable reservation policies for campsites and other lodging. These
81.3policies are exempt from rulemaking provisions under chapter 14 and section 14.386
81.4does not apply.
81.5(b) The revenue collected from the state park reservation fee established under
81.6subdivision 5, including interest earned, shall be deposited in the state park account in the
81.7natural resources fund and is annually appropriated to the commissioner for the cost of
81.8the state park reservation system.
81.9EFFECTIVE DATE.This section is effective retroactively from March 1, 2012.

81.10    Sec. 18. Minnesota Statutes 2012, section 85.054, is amended by adding a subdivision
81.11to read:
81.12    Subd. 18. La Salle Lake State Recreation Area. A state park permit is not
81.13required and a fee may not be charged for motor vehicle entry, use, or parking in La
81.14Salle Lake State Recreation Area unless the occupants of the vehicle enter, use, or park
81.15in a developed overnight or day-use area.

81.16    Sec. 19. Minnesota Statutes 2012, section 85.055, subdivision 1, is amended to read:
81.17    Subdivision 1. Fees. The fee for state park permits for:
81.18(1) an annual use of state parks is $25;
81.19(2) a second or subsequent vehicle state park permit is $18;
81.20(3) a state park permit valid for one day is $5;
81.21(4) a daily vehicle state park permit for groups is $3;
81.22(5) an annual permit for motorcycles is $20;
81.23(6) an employee's state park permit is without charge; and
81.24(7) a state park permit for disabled persons under section 85.053, subdivision 7,
81.25clauses (1) and (2) to (3), is $12.
81.26The fees specified in this subdivision include any sales tax required by state law.

81.27    Sec. 20. Minnesota Statutes 2012, section 85.055, subdivision 2, is amended to read:
81.28    Subd. 2. Fee deposit and appropriation. The fees collected under this section shall
81.29be deposited in the natural resources fund and credited to the state parks account. Money
81.30in the account, except for the electronic licensing system commission established by the
81.31commissioner under section 84.027, subdivision 15, and the state park reservation system
81.32fee established by the commissioner under section 85.052, subdivisions 5 and 6, is available
81.33for appropriation to the commissioner to operate and maintain the state park system.

82.1    Sec. 21. Minnesota Statutes 2012, section 85.41, is amended by adding a subdivision
82.2to read:
82.3    Subd. 6. Grant-in-aid trail donations. (a) At the time of purchasing the pass
82.4required under subdivision 1, a person may agree to add a donation of any amount to
82.5the cross-country ski pass fee for grant-in-aid cross-country ski trails. An additional
82.6commission may not be assessed on the donation. The commissioner shall offer the
82.7opportunity to make a donation under this subdivision to all pass purchasers and shall
82.8issue a recognition grant-in-aid trail sticker to a person contributing $20 or more.
82.9(b) Money donated under this subdivision shall be deposited in the cross-country ski
82.10account in the natural resources fund and shall be used for the grant-in-aid program as
82.11provided under section 85.43, paragraph (a), clause (1).

82.12    Sec. 22. Minnesota Statutes 2012, section 85.42, is amended to read:
82.1385.42 USER FEE; VALIDITY.
82.14(a) The fee for an annual cross-country ski pass is $19 for an individual age 16 and
82.15over. The fee for a three-year pass is $54 for an individual age 16 and over. This fee
82.16shall be collected at the time the pass is purchased. Three-year passes are valid for three
82.17years beginning the previous July 1. Annual passes are valid for one year beginning
82.18the previous July 1.
82.19(b) The cost for a daily cross-country skier pass is $5 for an individual age 16 and
82.20over. This fee shall be collected at the time the pass is purchased. The daily pass is valid
82.21only for the date designated on the pass form.
82.22(c) A pass must be signed by the skier across the front of the pass to be valid and
82.23becomes nontransferable on signing.
82.24(d) The commissioner and agents shall issue a duplicate pass to a person whose pass
82.25is lost or destroyed, using the process established under section 97A.405, subdivision 3,
82.26and rules adopted thereunder. The fee for a duplicate cross-country ski pass is $2.

82.27    Sec. 23. Minnesota Statutes 2012, section 85.43, is amended to read:
82.2885.43 DISPOSITION OF RECEIPTS; PURPOSE.
82.29(a) Fees from cross-country ski passes and donations received under section 85.41,
82.30subdivision 6, shall be deposited in the state treasury and credited to a cross-country ski
82.31account in the natural resources fund and, except for the electronic licensing system
82.32commission established by the commissioner under section 84.027, subdivision 15, are
82.33appropriated to the commissioner of natural resources for the following purposes:
82.34(1) grants-in-aid for cross-country ski trails to:
83.1(i) counties and municipalities for construction and maintenance of cross-country
83.2ski trails; and
83.3(ii) special park districts as provided in section 85.44 for construction and
83.4maintenance of cross-country ski trails; and
83.5(2) administration of the cross-country ski trail grant-in-aid program.
83.6(b) Development and maintenance of state cross-country ski trails are eligible for
83.7funding from the cross-country ski account if the money is appropriated by law.

83.8    Sec. 24. Minnesota Statutes 2012, section 85.46, subdivision 6, is amended to read:
83.9    Subd. 6. Disposition of receipts. Fees and donations collected under this section,
83.10except for the issuing fee, shall be deposited in the state treasury and credited to the horse
83.11pass account in the natural resources fund. Except for the electronic licensing system
83.12commission established by the commissioner under section 84.027, subdivision 15, the
83.13fees are appropriated to the commissioner of natural resources for trail acquisition, trail
83.14and facility development, and maintenance, enforcement, and rehabilitation of horse
83.15trails or trails authorized for horse use, whether for riding, leading, or driving, on land
83.16administered by the commissioner.

83.17    Sec. 25. Minnesota Statutes 2012, section 85.46, is amended by adding a subdivision
83.18to read:
83.19    Subd. 8. Trail donations. At the time of purchasing the pass required under
83.20subdivision 1, a person may agree to add a donation of any amount to the horse pass
83.21fee for horse trails. An additional commission may not be assessed on the donation.
83.22The commissioner shall offer the opportunity to make a donation under this subdivision
83.23to all pass purchasers and shall issue a recognition trail sticker to a person contributing
83.24$20 or more.

83.25    Sec. 26. Minnesota Statutes 2012, section 89.0385, is amended to read:
83.2689.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST
83.27CERTIFICATION.
83.28(a) After each fiscal year, The commissioner shall certify the total costs incurred for
83.29forest management, forest improvement, and road improvement on state-managed lands
83.30during that year. The commissioner shall distribute forest management receipts credited to
83.31various accounts according to this section.
83.32(b) The amount of the certified costs incurred for forest management activities on
83.33state lands shall be transferred from the account where receipts are deposited to the forest
84.1management investment account in the natural resources fund, except for those costs
84.2certified under section 16A.125. Transfers may occur quarterly, based on quarterly cost and
84.3revenue reports, throughout the fiscal year, with final certification and reconciliation after
84.4each fiscal year. Transfers in a fiscal year cannot exceed receipts credited to the account.

84.5    Sec. 27. Minnesota Statutes 2012, section 89.17, is amended to read:
84.689.17 LEASES AND PERMITS.
84.7(a) Notwithstanding the permit procedures of chapter 90, the commissioner shall
84.8have power to grant and execute, in the name of the state, leases and permits for the use of
84.9any forest lands under the authority of the commissioner for any purpose which in the
84.10commissioner's opinion is not inconsistent with the maintenance and management of the
84.11forest lands, on forestry principles for timber production. Every such lease or permit shall
84.12be revocable at the discretion of the commissioner at any time subject to such conditions
84.13as may be agreed on in the lease. The approval of the commissioner of administration
84.14shall not be required upon any such lease or permit. No such lease or permit for a period
84.15exceeding 21 years shall be granted except with the approval of the Executive Council.
84.16(b) Public access to the leased land for outdoor recreation shall be the same as
84.17access would be under state management.
84.18(c) The commissioner shall, by written order, establish the schedule of application
84.19fees for all leases issued under this section. Notwithstanding section 16A.1285, subdivision
84.202, the application fees shall be set at a rate that neither significantly overrecovers nor
84.21underrecovers costs, including overhead costs, involved in providing the services at the
84.22time of issuing the leases. The commissioner shall update the schedule of application fees
84.23every five years. The schedule of application fees and any adjustment to the schedule are
84.24not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.
84.25(d) Money received under paragraph (c) must be deposited in the land management
84.26account in the natural resources fund and is appropriated to the commissioner to cover the
84.27reasonable costs incurred for issuing leases.
84.28(e) Notwithstanding section 16A.125, subdivision 5, after deducting the reasonable
84.29costs incurred for preparing and issuing the lease application fee paid according to
84.30paragraph (c), all remaining proceeds from the leasing of school trust land and university
84.31land for roads on forest lands must be deposited into the respective permanent fund for
84.32the lands.

84.33    Sec. 28. Minnesota Statutes 2012, section 90.01, subdivision 4, is amended to read:
85.1    Subd. 4. Scaler. "Scaler" means a qualified bonded person designated by the
85.2commissioner to measure timber and cut forest products.

85.3    Sec. 29. Minnesota Statutes 2012, section 90.01, subdivision 5, is amended to read:
85.4    Subd. 5. State appraiser. "State appraiser" means an employee of the department
85.5designated by the commissioner to appraise state lands, which includes, but is not limited
85.6to, timber and other forest resource products, for volume, quality, and value.

85.7    Sec. 30. Minnesota Statutes 2012, section 90.01, subdivision 6, is amended to read:
85.8    Subd. 6. Timber. "Timber" means trees, shrubs, or woody plants, that will produce
85.9forest products of value whether standing or down, and including but not limited to logs,
85.10sawlogs, posts, poles, bolts, pulpwood, cordwood, fuelwood, woody biomass, lumber,
85.11 and woody decorative material.

85.12    Sec. 31. Minnesota Statutes 2012, section 90.01, subdivision 8, is amended to read:
85.13    Subd. 8. Permit holder. "Permit holder" means the person holding who is the
85.14signatory of a permit to cut timber on state lands.

85.15    Sec. 32. Minnesota Statutes 2012, section 90.01, subdivision 11, is amended to read:
85.16    Subd. 11. Effective permit. "Effective permit" means a permit for which the
85.17commissioner has on file full or partial surety security as required by section 90.161, or
85.18 90.162, 90.163, or 90.173 or, in the case of permits issued according to section 90.191 or
85.1990.195 , the commissioner has received a down payment equal to the full appraised value.

85.20    Sec. 33. Minnesota Statutes 2012, section 90.031, subdivision 4, is amended to read:
85.21    Subd. 4. Timber rules. The Executive Council may formulate and establish, from
85.22time to time, rules it deems advisable for the transaction of timber business of the state,
85.23including approval of the sale of timber on any tract in a lot exceeding 6,000 12,000 cords
85.24in volume when the sale is in the best interests of the state, and may abrogate, modify,
85.25or suspend rules at its pleasure.

85.26    Sec. 34. Minnesota Statutes 2012, section 90.041, subdivision 2, is amended to read:
85.27    Subd. 2. Trespass on state lands. The commissioner may compromise and settle,
85.28with the approval of notification to the attorney general, upon terms the commissioner
85.29deems just, any claim of the state for casual and involuntary trespass upon state lands or
85.30timber; provided that no claim shall be settled for less than the full value of all timber
86.1or other materials taken in casual trespass or the full amount of all actual damage or
86.2loss suffered by the state as a result. Upon request, the commissioner shall advise the
86.3Executive Council of any information acquired by the commissioner concerning any
86.4trespass on state lands, giving all details and names of witnesses and all compromises and
86.5settlements made under this subdivision.

86.6    Sec. 35. Minnesota Statutes 2012, section 90.041, subdivision 5, is amended to read:
86.7    Subd. 5. Forest improvement contracts. The commissioner may contract as part
86.8of the timber sale with the purchaser of state timber at either informal or auction sale
86.9for the following forest improvement work to be done on the land included within the
86.10sale area:. Forest improvement work may include activities relating to preparation of
86.11the site for seeding or planting of seedlings or trees, seeding or planting of seedlings or
86.12trees, and other activities relating related to forest regeneration or deemed necessary by
86.13the commissioner to accomplish forest management objectives, including those related
86.14to water quality protection, trail development, and wildlife habitat enhancement. A
86.15contract issued under this subdivision is not subject to the competitive bidding provisions
86.16of chapter 16C and is exempt from the contract approval provisions of section 16C.05,
86.17subdivision 2
. The bid value received in the sale of the timber and the contract bid
86.18cost of the improvement work may be combined and the total value may be considered
86.19by the commissioner in awarding forest improvement contracts under this section.
86.20The commissioner may refuse to accept any and all bids received and cancel a forest
86.21improvement contract sale for good and sufficient reasons.

86.22    Sec. 36. Minnesota Statutes 2012, section 90.041, subdivision 6, is amended to read:
86.23    Subd. 6. Sale of damaged timber. The commissioner may sell at public auction
86.24timber that has been damaged by fire, windstorm, flood, insect, disease, or other natural
86.25cause on notice that the commissioner considers reasonable when there is a high risk that
86.26the salvage value of the timber would be lost.

86.27    Sec. 37. Minnesota Statutes 2012, section 90.041, subdivision 9, is amended to read:
86.28    Subd. 9. Reoffering unsold timber. To maintain and enhance forest ecosystems on
86.29state forest lands, The commissioner may reoffer timber tracts remaining unsold under the
86.30provisions of section 90.101 below appraised value at public auction with the required
86.3130-day notice under section 90.101, subdivision 2.

87.1    Sec. 38. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
87.2to read:
87.3    Subd. 10. Fees. (a) The commissioner may establish a fee schedule that covers the
87.4commissioner's cost of issuing, administering, and processing various permits, permit
87.5modifications, transfers, assignments, amendments, and other transactions necessary to the
87.6administration of activities under this chapter.
87.7(b) A fee established under this subdivision is not subject to the rulemaking
87.8provisions of chapter 14 and section 14.386 does not apply. The commissioner may
87.9establish fees under this subdivision notwithstanding section 16A.1283.

87.10    Sec. 39. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
87.11to read:
87.12    Subd. 11. Debarment. The commissioner may debar a permit holder if the holder
87.13is convicted in Minnesota at the gross misdemeanor or felony level of criminal willful
87.14trespass, theft, fraud, or antitrust violation involving state, federal, county, or privately
87.15owned timber in Minnesota or convicted in any other state involving similar offenses and
87.16penalties for timber owned in that state. The commissioner shall cancel and repossess the
87.17permit directly involved in the prosecution of the crime. The commissioner shall cancel
87.18and repossess all other state timber permits held by the permit holder after taking from
87.19all security deposits money to which the state is entitled. The commissioner shall return
87.20the remainder of the security deposits, if any, to the permit holder. The debarred permit
87.21holder is prohibited from bidding, possessing, or being employed on any state timber
87.22permit during the period of debarment. The period of debarment is not less than one year
87.23or greater than three years. The duration of the debarment is based on the severity of the
87.24violation, past history of compliance with timber permits, and the amount of loss incurred
87.25by the state arising from violations of timber permits.

87.26    Sec. 40. Minnesota Statutes 2012, section 90.045, is amended to read:
87.2790.045 APPRAISAL STANDARDS.
87.28By July 1, 1983, the commissioner shall establish specific timber appraisal standards
87.29according to which all timber appraisals will be conducted under this chapter. The
87.30standards shall include a specification of the maximum allowable appraisal sampling error,
87.31and including the procedures for tree defect allowance, tract area estimation, product
87.32volume estimation, and product value determination. The timber appraisal standards shall
87.33be included in each edition of the timber sales manual published by the commissioner. In
87.34addition to the duties pursuant to section 90.061, every state appraiser shall work within
88.1the guidelines of the timber appraisal standards. The standards shall not be subject to
88.2the rulemaking provisions of chapter 14.

88.3    Sec. 41. Minnesota Statutes 2012, section 90.061, subdivision 8, is amended to read:
88.4    Subd. 8. Appraiser authority; form of documents. State appraisers are
88.5empowered, with the consent of the commissioner, to perform any scaling, and generally
88.6to supervise the cutting and removal of timber and forest products on or from state lands
88.7so far as may be reasonably necessary to insure compliance with the terms of the permits
88.8or other contracts governing the same and protect the state from loss.
88.9The form of appraisal reports, records, and notes to be kept by state appraisers
88.10shall be as the commissioner prescribes.

88.11    Sec. 42. Minnesota Statutes 2012, section 90.101, subdivision 1, is amended to read:
88.12    Subdivision 1. Sale requirements. The commissioner may sell the timber on any
88.13tract of state land and may determine the number of sections or fractional sections of land
88.14to be included in the permit area covered by any one permit issued to the purchaser of
88.15timber on state lands, or in any one contract or other instrument relating thereto. No
88.16timber shall be sold, except (1) to the highest responsible bidder at public auction, or
88.17(2) if unsold at public auction, the commissioner may offer the timber for private sale
88.18for a period of no more than six months one year after the public auction to any person
88.19 responsible bidder who pays the appraised value for the timber. The minimum price shall
88.20be the appraised value as fixed by the report of the state appraiser. Sales may include tracts
88.21in more than one contiguous county or forestry administrative area and shall be held either
88.22in the county or forestry administrative area in which the tract is located or in an adjacent
88.23county or forestry administrative area that is nearest the tract offered for sale or that is
88.24most accessible to potential bidders. In adjoining counties or forestry administrative areas,
88.25sales may not be held less than two hours apart.

88.26    Sec. 43. Minnesota Statutes 2012, section 90.121, is amended to read:
88.2790.121 INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000
88.28CORDS.
88.29(a) The commissioner may sell the timber on any tract of state land in lots not
88.30exceeding 3,000 cords in volume, in the same manner as timber sold at public auction under
88.31section 90.101, and related laws, subject to the following special exceptions and limitations:
88.32(1) the commissioner shall offer all tracts authorized for sale by this section
88.33separately from the sale of tracts of state timber made pursuant to section 90.101;
89.1(2) no bidder may be awarded more than 25 percent of the total tracts offered at the
89.2first round of bidding unless fewer than four tracts are offered, in which case not more than
89.3one tract shall be awarded to one bidder. Any tract not sold at public auction may be offered
89.4for private sale as authorized by section 90.101, subdivision 1, 30 days after the auction to
89.5persons responsible bidders eligible under this section at the appraised value; and
89.6(3) no sale may be made to a person responsible bidder having more than 30
89.7employees. For the purposes of this clause, "employee" means an individual working in
89.8the timber or wood products industry for salary or wages on a full-time or part-time basis.
89.9(b) The auction sale procedure set forth in this section constitutes an additional
89.10alternative timber sale procedure available to the commissioner and is not intended to
89.11replace other authority possessed by the commissioner to sell timber in lots of 3,000
89.12cords or less.
89.13(c) Another bidder or the commissioner may request that the number of employees a
89.14bidder has pursuant to paragraph (a), clause (3), be confirmed by signed affidavit if there is
89.15evidence that the bidder may be ineligible due to exceeding the employee threshold. The
89.16commissioner shall request information from the commissioners of labor and industry and
89.17employment and economic development including the premiums paid by the bidder in
89.18question for workers' compensation insurance coverage for all employees of the bidder.
89.19The commissioner shall review the information submitted by the commissioners of labor
89.20and industry and employment and economic development and make a determination based
89.21on that information as to whether the bidder is eligible. A bidder is considered eligible and
89.22may participate in intermediate auctions until determined ineligible under this paragraph.

89.23    Sec. 44. Minnesota Statutes 2012, section 90.145, is amended to read:
89.2490.145 PURCHASER QUALIFICATIONS AND, REGISTRATION, AND
89.25REQUIREMENTS.
89.26    Subdivision 1. Purchaser qualifications requirements. (a) In addition to any other
89.27requirements imposed by this chapter, the purchaser of a state timber permit issued under
89.28section 90.151 must meet the requirements in paragraphs (b) to (d) (e).
89.29(b) The purchaser and or the purchaser's agents, employees, subcontractors, and
89.30assigns conducting logging operations on the timber permit must comply with general
89.31industry safety standards for logging adopted by the commissioner of labor and industry
89.32under chapter 182. The commissioner of natural resources shall may require a purchaser
89.33to provide proof of compliance with the general industry safety standards.
89.34(c) The purchaser and or the purchaser's agents, subcontractors, and assigns
89.35conducting logging operations on the timber permit must comply with the mandatory
90.1insurance requirements of chapter 176. The commissioner shall may require a purchaser
90.2to provide a copy of the proof of insurance required by section 176.130 before the start of
90.3harvesting operations on any permit.
90.4(d) Before the start of harvesting operations on any permit, the purchaser must certify
90.5that a foreperson or other designated employee who has a current certificate of completion,
90.6 which includes instruction in site-level forest management guidelines or best management
90.7practices, from the Minnesota Logger Education Program (MLEP), the Wisconsin Forest
90.8Industry Safety and Training Alliance (FISTA), or any similar continuous education
90.9program acceptable to the commissioner, is supervising active logging operations.
90.10(e) The purchaser and the purchaser's agents, employees, subcontractors, and assigns
90.11who will be involved with logging or scaling state timber must be in compliance with
90.12this chapter.
90.13    Subd. 2. Purchaser preregistration registration. To facilitate the sale of permits
90.14issued under section 90.151, the commissioner may establish a purchaser preregistration
90.15 registration system to verify the qualifications of a person as a responsible bidder to
90.16purchase a timber permit. Any system implemented by the commissioner shall be limited
90.17in scope to only that information that is required for the efficient administration of the
90.18purchaser qualification provisions requirements of this chapter and shall conform with the
90.19requirements of chapter 13. The registration system established under this subdivision is
90.20not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.

90.21    Sec. 45. Minnesota Statutes 2012, section 90.151, subdivision 1, is amended to read:
90.22    Subdivision 1. Issuance; expiration. (a) Following receipt of the down payment
90.23for state timber required under section 90.14 or 90.191, the commissioner shall issue a
90.24numbered permit to the purchaser, in a form approved by the attorney general, by the
90.25terms of which the purchaser shall be authorized to enter upon the land, and to cut and
90.26remove the timber therein described as designated for cutting in the report of the state
90.27appraiser, according to the provisions of this chapter. The permit shall be correctly
90.28dated and executed by the commissioner and signed by the purchaser. If a permit is not
90.29signed by the purchaser within 60 45 days from the date of purchase, the permit cancels
90.30and the down payment for timber required under section 90.14 forfeits to the state. The
90.31commissioner may grant an additional period for the purchaser to sign the permit, not to
90.32exceed five ten business days, provided the purchaser pays a $125 $200 penalty fee.
90.33    (b) The permit shall expire no later than five years after the date of sale as the
90.34commissioner shall specify or as specified under section 90.191, and the timber shall
90.35be cut and removed within the time specified therein. All cut timber, equipment, and
91.1buildings not removed from the land within 90 days after expiration of the permit shall
91.2become the property of the state. If additional time is needed, the permit holder must
91.3request, prior to the expiration date, and may be granted, for good and sufficient reasons,
91.4up to 90 additional days for the completion of skidding, hauling, and removing all
91.5equipment and buildings. All cut timber, equipment, and buildings not removed from the
91.6land after expiration of the permit becomes the property of the state.
91.7    (c) The commissioner may grant an additional period of time not to exceed 120 240
91.8 days for the removal of cut timber, equipment, and buildings upon receipt of such a written
91.9 request by the permit holder for good and sufficient reasons. The commissioner may grant
91.10a second period of time not to exceed 120 days for the removal of cut timber, equipment,
91.11and buildings upon receipt of a request by the permit holder for hardship reasons only.
91.12 The permit holder may combine in the written request under this paragraph the request
91.13for additional time under paragraph (b).

91.14    Sec. 46. Minnesota Statutes 2012, section 90.151, subdivision 2, is amended to read:
91.15    Subd. 2. Permit requirements. The permit shall state the amount of timber
91.16estimated for cutting on the land, the estimated value thereof, and the price at which it is
91.17sold in units of per thousand feet, per cord, per piece, per ton, or by whatever description
91.18sold, and shall specify that all landings of cut products shall be legibly marked with the
91.19assigned permit number. The permit shall provide for the continuous identification
91.20and control of the cut timber from the time of cutting until delivery to the consumer.
91.21The permit shall provide that failure to continuously identify the timber as specified in
91.22the permit constitutes trespass.

91.23    Sec. 47. Minnesota Statutes 2012, section 90.151, subdivision 3, is amended to read:
91.24    Subd. 3. Security provisions. The permit shall contain such provisions as may be
91.25necessary to secure to the state the title of all timber cut thereunder wherever found until
91.26full payment therefor and until all provisions of the permit have been fully complied
91.27with. The permit shall provide that from the date the same becomes effective cutting
91.28commences until the expiration thereof of the permit, including all extensions, the
91.29purchaser and successors in interest shall be liable to the state for the full permit price of
91.30all timber covered thereby, notwithstanding any subsequent damage or injury thereto or
91.31trespass thereon or theft thereof, and without prejudice to the right of the state to pursue
91.32such timber and recover the value thereof anywhere prior to the payment therefor in full to
91.33the state. If an effective permit is forfeited prior to any cutting activity, the purchaser is
91.34liable to the state for a sum equal to the down payment and bid guarantee. Upon recovery
92.1from any person other than the permit holder, the permit holder shall be deemed released
92.2to the extent of the net amount, after deducting all expenses of collecting same, recovered
92.3by the state from such other person.

92.4    Sec. 48. Minnesota Statutes 2012, section 90.151, subdivision 4, is amended to read:
92.5    Subd. 4. Permit terms. Once a permit becomes effective and cutting commences,
92.6the permit holder is liable to the state for the permit price for all timber required to be cut,
92.7including timber not cut. The permit shall provide that all timber sold or designated for
92.8cutting shall be cut without in such a manner so as not to cause damage to other timber;
92.9that the permit holder shall remove all timber authorized and designated to be cut under
92.10the permit; that timber sold by board measure identified in the permit, but later determined
92.11by the commissioner not to be convertible into board the permit's measure, shall be paid
92.12for by the piece or cord or other unit of measure according to the size, species, or value, as
92.13may be determined by the commissioner; and that all timber products, except as specified
92.14by the commissioner, shall be scaled and the final settlement for the timber cut shall be
92.15made on this scale; and that the permit holder shall pay to the state the permit price for
92.16all timber authorized to be cut, including timber not cut.

92.17    Sec. 49. Minnesota Statutes 2012, section 90.151, subdivision 6, is amended to read:
92.18    Subd. 6. Notice and approval required. The permit shall provide that the permit
92.19holder shall not start cutting any state timber nor clear building sites landings nor logging
92.20roads until the commissioner has been notified and has given prior approval to such
92.21cutting operations. Approval shall not be granted until the permit holder has completed
92.22a presale conference with the state appraiser designated to supervise the cutting. The
92.23permit holder shall also give prior notice whenever permit operations are to be temporarily
92.24halted, whenever permit operations are to be resumed, and when permit operations are to
92.25be completed.

92.26    Sec. 50. Minnesota Statutes 2012, section 90.151, subdivision 7, is amended to read:
92.27    Subd. 7. Liability for timber cut in trespass. The permit shall provide that the
92.28permit holder shall pay the permit price value for any timber sold which is negligently
92.29destroyed or damaged by the permit holder in cutting or removing other timber sold. If the
92.30permit holder shall cut or remove or negligently destroy or damage any timber upon the
92.31land described, not sold under the permit, except such timber as it may be necessary to cut
92.32and remove in the construction of necessary logging roads and landings approved as to
92.33location and route by the commissioner, such timber shall be deemed to have been cut in
93.1trespass. The permit holder shall be liable for any such timber and recourse may be had
93.2upon the bond security deposit.

93.3    Sec. 51. Minnesota Statutes 2012, section 90.151, subdivision 8, is amended to read:
93.4    Subd. 8. Suspension; cancellation. The permit shall provide that the commissioner
93.5shall have the power to order suspension of all operations under the permit when in the
93.6commissioner's judgment the conditions thereof have not been complied with and any
93.7timber cut or removed during such suspension shall be deemed to have been cut in trespass;
93.8that the commissioner may cancel the permit at any time when in the commissioner's
93.9judgment the conditions thereof have not been complied with due to a breach of the permit
93.10conditions and such cancellation shall constitute repossession of the timber by the state;
93.11that the permit holder shall remove equipment and buildings from such land within 90 days
93.12after such cancellation; that, if the purchaser at any time fails to pay any obligations to the
93.13state under any other permits, any or all permits may be canceled; and that any timber cut
93.14or removed in violation of the terms of the permit or of any law shall constitute trespass.

93.15    Sec. 52. Minnesota Statutes 2012, section 90.151, subdivision 9, is amended to read:
93.16    Subd. 9. Slashings disposal. The permit shall provide that the permit holder shall
93.17burn or otherwise dispose of or treat all slashings or other refuse resulting from cutting
93.18operations, as specified in the permit, in the manner now or hereafter provided by law.

93.19    Sec. 53. Minnesota Statutes 2012, section 90.161, is amended to read:
93.2090.161 SURETY BONDS FOR AUCTION SECURITY DEPOSITS
93.21REQUIRED FOR EFFECTIVE TIMBER PERMITS.
93.22    Subdivision 1. Bond Security deposit required. (a) Except as otherwise provided
93.23by law, the purchaser of any state timber, before any timber permit becomes effective for
93.24any purpose, shall give a good and valid bond security in the form of cash; a certified
93.25check; a cashier's check; a postal, bank, or express money order; a corporate surety bond;
93.26or an irrevocable bank letter of credit to the state of Minnesota equal to the value of all
93.27timber covered or to be covered by the permit, as shown by the sale price bid and the
93.28appraisal report as to quantity, less the amount of any payments pursuant to sections
93.29 section 90.14 and 90.163.
93.30(b) The bond security deposit shall be conditioned upon the faithful performance
93.31by the purchaser and successors in interest of all terms and conditions of the permit and
93.32all requirements of law in respect to timber sales. The bond security deposit shall be
93.33approved in writing by the commissioner and filed for record in the commissioner's office.
94.1(c) In the alternative to cash and bond requirements, but upon the same conditions,
94.2 A purchaser may post bond for 100 percent of the purchase price and request refund of the
94.3amount of any payments pursuant to sections section 90.14 and 90.163. The commissioner
94.4may credit the refund to any other permit held by the same permit holder if the permit is
94.5delinquent as provided in section 90.181, subdivision 2, or may credit the refund to any
94.6other permit to which the permit holder requests that it be credited.
94.7(d) In the event of a default, the commissioner may take from the deposit the sum of
94.8money to which the state is entitled. The commissioner shall return the remainder of the
94.9deposit, if any, to the person making the deposit. When cash is deposited as security, it
94.10shall be applied to the amount due when a statement is prepared and transmitted to the
94.11permit holder according to section 90.181. Any balance due to the state shall be shown on
94.12the statement and shall be paid as provided in section 90.181. Any amount of the deposit
94.13in excess of the amount determined to be due according to section 90.181 shall be returned
94.14to the permit holder when a final statement is transmitted under section 90.181. All or
94.15part of a cash deposit may be withheld from application to an amount due on a nonfinal
94.16statement if it appears that the total amount due on the permit will exceed the bid price.
94.17(e) If an irrevocable bank letter of credit is provided as security under paragraph
94.18(a), at the written request of the permittee, the commissioner shall annually allow the
94.19amount of the bank letter of credit to be reduced by an amount proportionate to the value
94.20of timber that has been harvested and for which the state has received payment under the
94.21timber permit. The remaining amount of the bank letter of credit after a reduction under
94.22this paragraph must not be less than the value of the timber remaining to be harvested
94.23under the timber permit.
94.24(f) If cash; a certified check; a cashier's check; a personal check; or a postal, bank, or
94.25express money order is provided as security under paragraph (a) and no cutting of state
94.26timber has taken place on the permit, the commissioner may credit the security provided,
94.27less any deposit required under section 90.14, to any other permit to which the permit
94.28holder requests in writing that it be credited.
94.29    Subd. 2. Failure to bond provide security deposit. If bond the security deposit is
94.30not furnished, no harvesting may occur and the down payment for timber 15 percent of the
94.31permit's purchase price shall forfeit to the state when the permit expires.
94.32    Subd. 3. Subrogation. In case of default When security is provided by surety
94.33bond and the permit holder defaults in payment by the permit holder, the surety upon the
94.34bond shall make payment in full to the state of all sums of money due under such permit;
94.35and thereupon such surety shall be deemed immediately subrogated to all the rights of
94.36the state in the timber so paid for; and such subrogated party may pursue the timber and
95.1recover therefor, or have any other appropriate relief in relation thereto which the state
95.2might or could have had if such surety had not made such payment. No assignment or
95.3other writing on the part of the state shall be necessary to make such subrogation effective,
95.4but the certificate signed by and bearing the official seal of the commissioner, showing the
95.5amount of such timber, the lands from which it was cut or upon which it stood, and the
95.6amount paid therefor, shall be prima facie evidence of such facts.
95.7    Subd. 4. Change of security. Prior to any harvest cutting activity, or activities
95.8incidental to the preparation for harvest, a purchaser having posted a bond security deposit
95.9 for 100 percent of the purchase price of a sale may request the release of the bond security
95.10 and the commissioner shall grant the release upon cash payment to the commissioner of
95.1115 percent of the appraised value of the sale, plus eight percent interest on the appraised
95.12value of the sale from the date of purchase to the date of release while retaining, or upon
95.13repayment of, the permit's down payment and bid guarantee deposit requirement.
95.14    Subd. 5. Return of security. Any security required under this section shall be
95.15returned to the purchaser within 60 days after the final scale.

95.16    Sec. 54. Minnesota Statutes 2012, section 90.162, is amended to read:
95.1790.162 ALTERNATIVE TO BOND OR DEPOSIT REQUIREMENTS
95.18 SECURING TIMBER PERMITS WITH CUTTING BLOCKS.
95.19In lieu of the bond or cash security deposit equal to the value of all timber covered
95.20by the permit required by section 90.161 or 90.173, a purchaser of state timber may elect
95.21in writing on a form prescribed by the attorney general to give good and valid surety to the
95.22state of Minnesota equal to the purchase price for any designated cutting block identified
95.23on the permit before the date the purchaser enters upon the land to begin harvesting the
95.24timber on the designated cutting block.

95.25    Sec. 55. [90.164] TIMBER PERMIT DEVELOPMENT OPTION.
95.26With the completion of the presale conference requirement under section 90.151,
95.27subdivision 6, a permit holder may access the permit area in advance of the permit being
95.28fully secured as required by section 90.161, for the express purpose of clearing approved
95.29landings and logging roads. No cutting of state timber except that incidental to the clearing
95.30of approved landings and logging roads is allowed under this section.

95.31    Sec. 56. Minnesota Statutes 2012, section 90.171, is amended to read:
95.3290.171 ASSIGNMENT OF AUCTION TIMBER PERMITS.
96.1Any permit sold at public auction may be assigned upon written approval of the
96.2commissioner. The assignment of any permit shall be signed and acknowledged by the
96.3permit holder. The commissioner shall not approve any assignment until the assignee has
96.4been determined to meet the qualifications of a responsible bidder and has given to the state
96.5a bond security deposit which shall be substantially in the form of, and shall be deemed
96.6of the same effect as, the bond security deposit required of the original purchaser. The
96.7commissioner may accept the an agreement of the assignee and any corporate surety upon
96.8such an original bond, substituting the assignee in the place of such the original purchaser
96.9and continuing such the original bond in full force and effect, as to the assignee. Thereupon
96.10but not otherwise the permit holder making the assignment shall be released from all
96.11liability arising or accruing from actions taken after the assignment became effective.

96.12    Sec. 57. Minnesota Statutes 2012, section 90.181, subdivision 2, is amended to read:
96.13    Subd. 2. Deferred payments. (a) If the amount of the statement is not paid within
96.1430 days of the date thereof, it shall bear interest at the rate determined pursuant to section
96.1516A.124 , except that the purchaser shall not be required to pay interest that totals $1 or
96.16less. If the amount is not paid within 60 days, the commissioner shall place the account in
96.17the hands of the commissioner of revenue according to chapter 16D, who shall proceed to
96.18collect the same. When deemed in the best interests of the state, the commissioner shall
96.19take possession of the timber for which an amount is due wherever it may be found and
96.20sell the same informally or at public auction after giving reasonable notice.
96.21(b) The proceeds of the sale shall be applied, first, to the payment of the expenses
96.22of seizure and sale; and, second, to the payment of the amount due for the timber, with
96.23interest; and the surplus, if any, shall belong to the state; and, in case a sufficient amount is
96.24not realized to pay these amounts in full, the balance shall be collected by the attorney
96.25general. Neither payment of the amount, nor the recovery of judgment therefor, nor
96.26satisfaction of the judgment, nor the seizure and sale of timber, shall release the sureties
96.27on any bond security deposit given pursuant to this chapter, or preclude the state from
96.28afterwards claiming that the timber was cut or removed contrary to law and recovering
96.29damages for the trespass thereby committed, or from prosecuting the offender criminally.

96.30    Sec. 58. Minnesota Statutes 2012, section 90.191, subdivision 1, is amended to read:
96.31    Subdivision 1. Sale requirements. The commissioner may sell the timber on any
96.32tract of state land in lots not exceeding 500 cords in volume, without formalities but for
96.33not less than the full appraised value thereof, to any person. No sale shall be made under
96.34this section to any person holding two more than four permits issued hereunder which are
97.1still in effect;. except that (1) a partnership as defined in chapter 323, which may include
97.2spouses but which shall provide evidence that a partnership exists, may be holding two
97.3permits for each of not more than three partners who are actively engaged in the business
97.4of logging or who are the spouses of persons who are actively engaged in the business of
97.5logging with that partnership; and (2) a corporation, a majority of whose shares and voting
97.6power are owned by natural persons related to each other within the fourth degree of
97.7kindred according to the rules of the civil law or their spouses or estates, may be holding
97.8two permits for each of not more than three shareholders who are actively engaged in the
97.9business of logging or who are the spouses of persons who are actively engaged in the
97.10business of logging with that corporation.

97.11    Sec. 59. Minnesota Statutes 2012, section 90.193, is amended to read:
97.1290.193 EXTENSION OF TIMBER PERMITS.
97.13The commissioner may, in the case of an exceptional circumstance beyond the
97.14control of the timber permit holder which makes it unreasonable, impractical, and not
97.15feasible to complete cutting and removal under the permit within the time allowed, grant
97.16an one regular extension of for one year. A written request for the regular extension must
97.17be received by the commissioner before the permit expires. The request must state the
97.18reason the extension is necessary and be signed by the permit holder. An interest rate of
97.19eight percent may be charged for the period of extension.

97.20    Sec. 60. Minnesota Statutes 2012, section 90.195, is amended to read:
97.2190.195 SPECIAL USE AND PRODUCT PERMIT.
97.22(a) The commissioner may issue a permit to salvage or cut not to exceed 12 cords of
97.23fuelwood per year for personal use from either or both of the following sources: (1) dead,
97.24down, and diseased damaged trees; (2) other trees that are of negative value under good
97.25forest management practices. The permits may be issued for a period not to exceed one
97.26year. The commissioner shall charge a fee for the permit that shall cover the commissioner's
97.27cost of issuing the permit and as provided under section 90.041, subdivision 10. The fee
97.28 shall not exceed the current market value of fuelwood of similar species, grade, and volume
97.29that is being sold in the area where the salvage or cutting is authorized under the permit.
97.30(b) The commissioner may issue a special product permit under section 89.42 for
97.31commercial use, which may include incidental volumes of boughs, gravel, hay, biomass,
97.32and other products derived from forest management activities. The value of the products
97.33is the current market value of the products that are being sold in the area. The permit may
98.1be issued for a period not to exceed one year and the commissioner shall charge a fee for
98.2the permit as provided under section 90.041, subdivision 10.
98.3(c) The commissioner may issue a special use permit for incidental volumes of
98.4timber from approved right-of-way road clearing across state land for the purpose of
98.5accessing a state timber permit. The permit shall include the volume and value of timber
98.6to be cleared and may be issued for a period not to exceed one year. A presale conference
98.7as required under section 90.151, subdivision 6, must be completed before the start of
98.8any activities under the permit.

98.9    Sec. 61. Minnesota Statutes 2012, section 90.201, subdivision 2a, is amended to read:
98.10    Subd. 2a. Prompt payment of refunds. Any refund of cash that is due to a permit
98.11holder as determined on a final statement transmitted pursuant to section 90.181 or a
98.12refund of cash made pursuant to section 90.161, subdivision 1, or 90.173, paragraph
98.13(a)
, shall be paid to the permit holder according to section 16A.124 unless the refund is
98.14credited on another permit as provided in this chapter.

98.15    Sec. 62. Minnesota Statutes 2012, section 90.211, is amended to read:
98.1690.211 PURCHASE MONEY, WHEN FORFEITED.
98.17If the holder of an effective permit begins to cut and then fails to cut complete any
98.18part thereof of the permit before the expiration of the permit, the permit holder shall
98.19nevertheless pay the price therefor; but under no circumstances shall timber be cut after
98.20the expiration of the permit or extension thereof.

98.21    Sec. 63. Minnesota Statutes 2012, section 90.221, is amended to read:
98.2290.221 TIMBER SALES RECORDS.
98.23The commissioner shall keep timber sales records, including the description of each
98.24tract of land from which any timber is sold; the date of the report of the state appraisers;
98.25the kind, amount, and value of the timber as shown by such report; the date of the sale;
98.26the price for which the timber was sold; the name of the purchaser; the number, date
98.27of issuance and date of expiration of each permit; the date of any assignment of the
98.28permit; the name of the assignee; the dates of the filing and the amounts of the respective
98.29bonds security deposits by the purchaser and assignee; the names of the sureties thereon;
98.30the amount of timber taken from the land; the date of the report of the scaler and state
98.31appraiser; the names of the scaler and the state appraiser who scaled the timber; and the
98.32amount paid for such timber and the date of payment.

99.1    Sec. 64. Minnesota Statutes 2012, section 90.252, subdivision 1, is amended to read:
99.2    Subdivision 1. Consumer scaling. The commissioner may enter into an agreement
99.3with either a timber sale permittee, or the purchaser of the cut products, or both, so
99.4that the scaling of the cut timber and the collection of the payment for the same can be
99.5consummated by the consumer state. Such an agreement shall be approved as to form and
99.6content by the attorney general and shall provide for a bond or cash in lieu of a bond and
99.7such other safeguards as are necessary to protect the interests of the state. The scaling
99.8and payment collection procedure may be used for any state timber sale, except that no
99.9permittee who is also the consumer shall both cut and scale the timber sold unless such
99.10scaling is supervised by a state scaler.

99.11    Sec. 65. Minnesota Statutes 2012, section 90.301, subdivision 2, is amended to read:
99.12    Subd. 2. Seizure of unlawfully cut timber. The commissioner may take possession
99.13of any timber hereafter unlawfully cut upon or taken from any land owned by the state
99.14wherever found and may sell the same informally or at public auction after giving such
99.15notice as the commissioner deems reasonable and after deducting all the expenses of such
99.16sale the proceeds thereof shall be paid into the state treasury to the credit of the proper
99.17fund; and when any timber so unlawfully cut has been intermingled with any other timber
99.18or property so that it cannot be identified or plainly separated therefrom the commissioner
99.19may so seize and sell the whole quantity so intermingled and, in such case, the whole
99.20quantity of such timber shall be conclusively presumed to have been unlawfully taken
99.21from state land. When the timber unlawfully cut or removed from state land is so seized
99.22and sold, the seizure shall not in any manner relieve the trespasser who cut or removed, or
99.23caused the cutting or removal of, any such timber from the full liability imposed by this
99.24chapter for the trespass so committed, but the net amount realized from such sale shall
99.25be credited on whatever judgment is recovered against such trespasser, if the trespass
99.26was deemed to be casual and involuntary.

99.27    Sec. 66. Minnesota Statutes 2012, section 90.301, subdivision 4, is amended to read:
99.28    Subd. 4. Apprehension of trespassers; reward. The commissioner may offer a
99.29reward to be paid to a person giving to the proper authorities any information that leads to
99.30the conviction of a person violating this chapter. The reward is limited to the greater of
99.31$100 or ten percent of the single stumpage value of any timber unlawfully cut or removed.
99.32The commissioner shall pay the reward from funds appropriated for that purpose or from
99.33receipts from the sale of state timber. A reward shall not be paid to salaried forest officers,
99.34state appraisers, scalers, conservation officers, or licensed peace officers.

100.1    Sec. 67. Minnesota Statutes 2012, section 90.41, subdivision 1, is amended to read:
100.2    Subdivision 1. Violations and penalty. (a) Any state scaler or state appraiser who
100.3shall accept any compensation or gratuity for services as such from any other source
100.4except the state of Minnesota, or any state scaler, or other person authorized to scale state
100.5timber, or state appraiser, who shall make any false report, or insert in any such report any
100.6false statement, or shall make any such report without having examined the land embraced
100.7therein or without having actually been upon the land, or omit from any such report any
100.8statement required by law to be made therein, or who shall fail to report any known trespass
100.9committed upon state lands, or who shall conspire with any other person in any manner, by
100.10act or omission or otherwise, to defraud or unlawfully deprive the state of Minnesota of any
100.11land or timber, or the value thereof, shall be guilty of a felony. Any material discrepancy
100.12between the facts and the scale returned by any such person scaling timber for the state
100.13shall be considered prima facie evidence that such person is guilty of violating this statute.
100.14(b) No such appraiser or scaler who has been once discharged for cause shall ever
100.15again be appointed. This provision shall not apply to resignations voluntarily made by and
100.16accepted from such employees.

100.17    Sec. 68. Minnesota Statutes 2012, section 92.50, is amended to read:
100.1892.50 UNSOLD LANDS SUBJECT TO SALE MAY BE LEASED.
100.19    Subdivision 1. Lease terms. (a) The commissioner of natural resources may lease
100.20land under the commissioner's jurisdiction and control:
100.21(1) to remove sand, gravel, clay, rock, marl, peat, and black dirt;
100.22(2) to store ore, waste materials from mines, or rock and tailings from ore milling
100.23plants;
100.24(3) for roads or railroads; or
100.25(4) for other uses consistent with the interests of the state.
100.26(b) The commissioner shall offer the lease at public or private sale for an amount
100.27and under terms and conditions prescribed by the commissioner. Commercial leases for
100.28more than ten years and leases for removal of peat that cover 320 or more acres must be
100.29approved by the Executive Council.
100.30(c) The lease term may not exceed 21 years except:
100.31(1) leases of lands for storage sites for ore, waste materials from mines, or rock and
100.32tailings from ore milling plants, or for the removal of peat for nonagricultural purposes
100.33may not exceed a term of 25 years; and
100.34(2) leases for commercial purposes, including major resort, convention center, or
100.35recreational area purposes, may not exceed a term of 40 years.
101.1(d) Leases must be subject to sale and leasing of the land for mineral purposes and
101.2contain a provision for cancellation for just cause at any time by the commissioner upon
101.3six months' written notice. A longer notice period, not exceeding three years, may be
101.4provided in leases for storing ore, waste materials from mines or rock or tailings from ore
101.5milling plants. The commissioner may determine the terms and conditions, including the
101.6notice period, for cancellation of a lease for the removal of peat and commercial leases.
101.7(e) Except as provided in subdivision 3, money received from leases under this
101.8section must be credited to the fund to which the land belongs.
101.9    Subd. 2. Leases for tailings deposits. The commissioner may grant leases and
101.10licenses to deposit tailings from any iron ore beneficiation plant in any public lake not
101.11exceeding 160 acres in area after holding a public hearing in the manner and under the
101.12procedure provided in Laws 1937, chapter 468, as amended and finding in pursuance
101.13of the hearing:
101.14(a) that such use of each lake is necessary and in the best interests of the public; and
101.15(b) that the proposed use will not result in pollution or sedimentation of any outlet
101.16stream.
101.17The lease or license may not exceed a term of 25 years and must be subject to
101.18cancellation on three years' notice. The commissioner may further restrict use of the lake
101.19to safeguard the public interest, and may require that the lessee or licensee acquire suitable
101.20permits or easements from the owners of lands riparian to the lake. Except as provided
101.21in subdivision 3, money received from the leases or licenses must be deposited in the
101.22permanent school fund.
101.23    Subd. 3. Application fees. (a) The commissioner shall, by written order, establish
101.24the schedule of application fees for all leases issued under this section. Notwithstanding
101.25section 16A.1285, subdivision 2, the application fees shall be set at a rate that neither
101.26significantly overrecovers nor underrecovers costs, including overhead costs, involved in
101.27providing the services at the time of issuing the leases. The commissioner shall update
101.28the schedule of application fees every five years. The schedule of application fees and
101.29any adjustment to the schedule are not subject to the rulemaking provision of chapter 14
101.30and section 14.386 does not apply.
101.31(b) Money received under this subdivision must be deposited in the land management
101.32account in the natural resources fund and is appropriated to the commissioner to cover the
101.33reasonable costs incurred for issuing leases.

101.34    Sec. 69. Minnesota Statutes 2012, section 93.17, subdivision 1, is amended to read:
102.1    Subdivision 1. Lease application. (a) Applications for leases to prospect for iron
102.2ore shall be presented to the commissioner in writing in such form as the commissioner
102.3may prescribe at any time before 4:30 p.m., St. Paul, Minnesota time, on the last business
102.4day before the day specified for the opening of bids, and no bids submitted after that time
102.5shall be considered. The application shall be accompanied by a certified check, cashier's
102.6check, or bank money order payable to the Department of Natural Resources in the sum of
102.7$100 $1,000 for each mining unit. The fee shall be deposited in the minerals management
102.8account in the natural resources fund.
102.9(b) Each application shall be accompanied by a sealed bid setting forth the amount
102.10of royalty per gross ton of crude ore based upon the iron content of the ore when dried at
102.11212 degrees Fahrenheit, in its natural condition or when concentrated, as set out in section
102.1293.20 , subdivisions 12 to 18, that the applicant proposes to pay to the state of Minnesota
102.13in case the lease shall be awarded.

102.14    Sec. 70. Minnesota Statutes 2012, section 93.1925, subdivision 2, is amended to read:
102.15    Subd. 2. Application. (a) An application for a negotiated lease shall be submitted to
102.16the commissioner of natural resources. The commissioner shall prescribe the information
102.17to be included in the application. The applicant shall submit with the application a certified
102.18check, cashier's check, or bank money order, payable to the Department of Natural
102.19Resources in the sum of $100 $2,000, as a fee for filing the application. The application
102.20fee shall not be refunded under any circumstances. The application fee shall be deposited
102.21in the minerals management account in the natural resources fund.
102.22(b) The right is reserved to the state to reject any or all applications for a negotiated
102.23lease.

102.24    Sec. 71. Minnesota Statutes 2012, section 93.25, subdivision 2, is amended to read:
102.25    Subd. 2. Lease requirements. (a) All leases for nonferrous metallic minerals or
102.26petroleum must be approved by the Executive Council, and any other mineral lease issued
102.27pursuant to this section that covers 160 or more acres must be approved by the Executive
102.28Council. The rents, royalties, terms, conditions, and covenants of all such leases shall be
102.29fixed by the commissioner according to rules adopted by the commissioner, but no lease
102.30shall be for a longer term than 50 years, and all rents, royalties, terms, conditions, and
102.31covenants shall be fully set forth in each lease issued. The rents and royalties shall be
102.32credited to the funds as provided in section 93.22.
103.1(b) The applicant for a lease must submit with the application a certified check,
103.2cashier's check, or bank money order payable to the Department of Natural Resources
103.3in the sum of:
103.4(1) $1,000 as a fee for filing an application for a lease being offered at public sale;
103.5(2) $1,000 as a fee for filing an application for a lease being offered under the
103.6preference rights lease availability list; and
103.7(3) $2,000 as a fee for filing an application for a lease through negotiation. The
103.8application fee for a negotiated lease shall not be refunded under any circumstances.
103.9The application fee must be deposited in the minerals management account in the natural
103.10resources fund.

103.11    Sec. 72. Minnesota Statutes 2012, section 93.285, subdivision 3, is amended to read:
103.12    Subd. 3. Stockpile mining unit. (a) Any stockpiled iron ore, wherever situated,
103.13may, in the discretion of the commissioner of natural resources, be designated as a
103.14stockpile mining unit for disposal separately from ore in the ground, such designation to
103.15be made according to section 93.15, so far as applicable.
103.16(b) The commissioner may lease the mining unit at public or private sale for an
103.17amount and under terms and conditions prescribed by the commissioner.
103.18(c) The applicant must submit with the application a certified check, cashier's check,
103.19or bank money order payable to the Department of Natural Resources in the sum of $1,000
103.20as a fee for filing an application for a lease being offered at public sale and in the sum of
103.21$2,000 as a fee for filing an application for a lease through negotiation. The application
103.22fee for a negotiated lease shall not be refunded under any circumstances. The application
103.23fee must be deposited in the minerals management account in the natural resources fund.
103.24(d) The lease term may not exceed 25 years. The amount payable for stockpiled iron
103.25ore material shall be at least equivalent to the minimum royalty that would be payable
103.26under section 93.20.

103.27    Sec. 73. Minnesota Statutes 2012, section 93.46, is amended by adding a subdivision
103.28to read:
103.29    Subd. 10. Scram mining. "Scram mining" means a mining operation that produces
103.30natural iron ore, natural iron ore concentrates, or taconite ore as described in section 93.20,
103.31subdivisions 12 to 18, from previously developed stockpiles, tailing basins, underground
103.32mine workings, or open pits and that involves no more than 80 acres of land not previously
103.33affected by mining, or more than 80 acres of land not previously affected by mining
103.34if the operator can demonstrate that impacts would be substantially the same as other
104.1scram operations. "Land not previously affected by mining" means land upon which mine
104.2wastes have not been deposited and land from which materials have not been removed in
104.3connection with the production or extraction of metallic minerals.

104.4    Sec. 74. Minnesota Statutes 2012, section 93.481, subdivision 3, is amended to read:
104.5    Subd. 3. Term of permit; amendment. (a) A permit issued by the commissioner
104.6pursuant to this section shall be granted for the term determined necessary by the
104.7commissioner for the completion of the proposed mining operation, including reclamation
104.8or restoration. The term of a scram mining permit for iron ore or taconite shall be
104.9determined in the same manner as a permit to mine for an iron ore or taconite mining
104.10operation.
104.11(b) A permit may be amended upon written application to the commissioner. A
104.12permit amendment application fee must be submitted with the written application.
104.13The permit amendment application fee is ten 20 percent of the amount provided for in
104.14subdivision 1, clause (3), for an application for the applicable permit to mine. If the
104.15commissioner determines that the proposed amendment constitutes a substantial change to
104.16the permit, the person applying for the amendment shall publish notice in the same manner
104.17as for a new permit, and a hearing shall be held if written objections are received in the
104.18same manner as for a new permit. An amendment may be granted by the commissioner if
104.19the commissioner determines that lawful requirements have been met.

104.20    Sec. 75. Minnesota Statutes 2012, section 93.481, is amended by adding a subdivision
104.21to read:
104.22    Subd. 4a. Release. A permit may not be released fully or partially without the
104.23written approval of the commissioner. A permit release application fee must be submitted
104.24with the written request for the release. The permit release application fee is 20 percent of
104.25the amount provided for in subdivision 1, clause (3), for an application for the applicable
104.26permit to mine.

104.27    Sec. 76. Minnesota Statutes 2012, section 93.481, subdivision 5, is amended to read:
104.28    Subd. 5. Assignment. A permit may not be assigned or otherwise transferred
104.29without the written approval of the commissioner. A permit assignment application fee
104.30must be submitted with the written application. The permit assignment application fee is
104.31ten 20 percent of the amount provided for in subdivision 1, clause (3), for an application
104.32for the applicable permit to mine.

105.1    Sec. 77. Minnesota Statutes 2012, section 93.481, is amended by adding a subdivision
105.2to read:
105.3    Subd. 5a. Preapplication. Before the preparation of an application for a permit to
105.4mine, persons intending to submit an application must meet with the commissioner for a
105.5preapplication conference and site visit. Prospective applicants must also meet with the
105.6commissioner to outline analyses and tests to be conducted if the results of the analyses
105.7and tests will be used for evaluation of the application. A permit preapplication fee must
105.8be submitted before the preapplication conferences, meetings, and site visit with the
105.9commissioner. The permit preapplication fee is 20 percent of the amount provided in
105.10subdivision 1, clause (3), for an application for the applicable permit to mine.

105.11    Sec. 78. Minnesota Statutes 2012, section 93.482, is amended to read:
105.1293.482 RECLAMATION FEES.
105.13    Subdivision 1. Annual permit to mine fee. (a) The commissioner shall charge
105.14every person holding a permit to mine an annual permit fee. The fee is payable to the
105.15commissioner by June 30 of each year, beginning in 2009.
105.16(b) The annual permit to mine fee for a an iron ore or taconite mining operation is
105.17$60,000 if the operation had production within the calendar year immediately preceding
105.18the year in which payment is due and $30,000 if there was no production within the
105.19immediately preceding calendar year $84,000.
105.20(c) The annual permit to mine fee for a nonferrous metallic minerals mining
105.21operation is $75,000 if the operation had production within the calendar year immediately
105.22preceding the year in which payment is due and $37,500 if there was no production within
105.23the immediately preceding calendar year.
105.24(d) The annual permit to mine fee for a scram mining operation is $5,000 if the
105.25operation had production within the calendar year immediately preceding the year in
105.26which payment is due and $2,500 if there was no production within the immediately
105.27preceding calendar year $10,250.
105.28(e) The annual permit to mine fee for a peat mining operation is $1,000 if the
105.29operation had production within the calendar year immediately preceding the year in
105.30which payment is due and $500 if there was no production within the immediately
105.31preceding calendar year $1,350.
105.32    Subd. 2. Supplemental application fee for taconite and nonferrous metallic
105.33minerals mining operation. (a) In addition to the application fee specified in section
105.3493.481 , the commissioner shall assess a person submitting an application for a permit
105.35to mine for a taconite or, a nonferrous metallic minerals mining, or peat operation the
106.1reasonable costs for reviewing the application and preparing the permit to mine. For
106.2nonferrous metallic minerals mining, the commissioner shall assess reasonable costs for
106.3monitoring construction of the mining facilities. The commissioner may assess a person
106.4submitting a request for amendment, assignment, or full or partial release of a permit to
106.5mine the reasonable costs for reviewing the request and issuing an approval or denial. The
106.6commissioner may assess a person submitting a request for a preapplication conference,
106.7meetings, and a site visit the reasonable costs for reviewing the request and meeting
106.8with the prospective applicant.
106.9(b) The commissioner must give the applicant an estimate of the supplemental
106.10application fee under this subdivision. The estimate must include a brief description
106.11of the tasks to be performed and the estimated cost of each task. The application fee
106.12under section 93.481 must be subtracted from the estimate of costs to determine the
106.13supplemental application fee.
106.14(c) The applicant and the commissioner shall enter into a written agreement to cover
106.15the estimated costs to be incurred by the commissioner.
106.16(d) The commissioner shall not issue the permit to mine until the applicant has paid
106.17all fees in full. The commissioner shall not issue an approved assignment, amendment,
106.18or release until the applicant has paid all fees in full. Upon completion of construction
106.19of a nonferrous metallic minerals facility, the commissioner shall refund the unobligated
106.20balance of the monitoring fee revenue.

106.21    Sec. 79. [93.60] MINERAL DATA AND INSPECTIONS ADMINISTRATION
106.22ACCOUNT.
106.23    Subdivision 1. Account established; sources. The mineral data and inspections
106.24administration account is established in the special revenue fund in the state treasury.
106.25Interest on the account accrues to the account. Fees charged under sections 93.61 and
106.26103I.601, subdivision 4a, shall be credited to the account.
106.27    Subd. 2. Appropriation; purposes of account. Money in the account is
106.28appropriated annually to the commissioner of natural resources to cover the costs of:
106.29(1) operating and maintaining the drill core library in Hibbing, Minnesota; and
106.30(2) conducting inspections of exploratory borings.

106.31    Sec. 80. [93.61] DRILL CORE LIBRARY ACCESS FEE.
106.32Notwithstanding section 13.03, subdivision 3, a person must pay a fee to access
106.33exploration data, exploration drill core data, mineral evaluation data, and mining data
106.34stored in the drill core library located in Hibbing, Minnesota, and managed by the
107.1commissioner of natural resources. The fee is $250 per day. Alternatively, a person may
107.2obtain an annual pass for a fee of $5,000. The fee must be credited to the mineral data and
107.3inspections administration account established in section 93.60 and is appropriated to the
107.4commissioner of natural resources for the reasonable costs of operating and maintaining
107.5the drill core library.

107.6    Sec. 81. [93.70] STATE-OWNED CONSTRUCTION AGGREGATES
107.7RECLAMATION ACCOUNT.
107.8    Subdivision 1. Account established; sources. The state-owned construction
107.9aggregates reclamation account is created in the special revenue fund in the state treasury.
107.10Interest on the account accrues to the account. Fees charged under section 93.71 shall be
107.11credited to the account.
107.12    Subd. 2. Appropriation; purposes of account. Money in the account is
107.13appropriated annually to the commissioner of natural resources to cover the costs of:
107.14(1) reclaiming state lands administered by the commissioner following cessation of
107.15construction aggregates mining operations on the lands; and
107.16(2) issuing and administering contracts needed for the performance of that
107.17reclamation work.

107.18    Sec. 82. [93.71] STATE-OWNED CONSTRUCTION AGGREGATES
107.19RECLAMATION FEE.
107.20    Subdivision 1. Annual reclamation fee; purpose. Except as provided in
107.21subdivision 4, the commissioner of natural resources shall charge a person who holds
107.22a lease or permit to mine construction aggregates on state land administered by the
107.23commissioner an annual reclamation fee. The fee is payable to the commissioner by
107.24January 15 of each year. The purpose of the fee is to pay for reclamation or restoration of
107.25state lands following temporary or permanent cessation of construction aggregates mining
107.26operations. Reclamation and restoration include: land sloping and contouring, spreading
107.27soil from stockpiles, planting vegetation, removing safety hazards, or other measures
107.28needed to return the land to productive and safe nonmining use.
107.29    Subd. 2. Determination of fee. The amount of the annual reclamation fee is
107.30determined as follows:
107.31(1) for aggregates measured in cubic yards upon removal, 15 cents for each cubic yard
107.32removed under the lease or permit within the immediately preceding calendar year; and
107.33(2) for aggregates measured in short tons upon removal, 11 cents per short ton
107.34removed under the lease or permit within the immediately preceding calendar year.
108.1    Subd. 3. Deposit of fees. All fees collected under this section must be deposited in
108.2the state-owned construction aggregates reclamation account established in section 93.70
108.3and credited for use to the same land class from which payment of the fee was derived.
108.4    Subd. 4. Exception. A person who holds a lease to mine construction aggregates on
108.5state land is not subject to the reclamation fee under subdivision 1 if the lease provides
108.6for continuous mining for five or more years at an average rate of 30,000 or more cubic
108.7yards per year over the term of the lease and requires the lessee to perform and pay for
108.8the reclamation.

108.9    Sec. 83. Minnesota Statutes 2012, section 97A.401, subdivision 3, is amended to read:
108.10    Subd. 3. Taking, possessing, and transporting wild animals for certain
108.11purposes. (a) Except as provided in paragraph (b), special permits may be issued without
108.12a fee to take, possess, and transport wild animals as pets and for scientific, educational,
108.13rehabilitative, wildlife disease prevention and control, and exhibition purposes. The
108.14commissioner shall prescribe the conditions for taking, possessing, transporting, and
108.15disposing of the wild animals.
108.16(b) A special permit may not be issued to take or possess wild or native deer for
108.17exhibition, propagation, or as pets.
108.18(c) Notwithstanding rules adopted under this section relating to wildlife rehabilitation
108.19permits, nonresident professional wildlife rehabilitators with a federal rehabilitation
108.20permit may possess and transport wildlife affected by oil spills.

108.21    Sec. 84. Minnesota Statutes 2012, section 103G.265, subdivision 2, is amended to read:
108.22    Subd. 2. Diversion greater than 2,000,000 gallons per day. A water use permit
108.23or a plan that requires a permit or the commissioner's approval, involving a diversion of
108.24waters of the state of more than 2,000,000 gallons per day average in a 30-day period,
108.25to a place outside of this state or from the basin of origin within this state may not be
108.26granted or approved until:
108.27(1) a determination is made by the commissioner that the water remaining in the
108.28basin of origin will be adequate to meet the basin's water resources needs during the
108.29specified life of the diversion project diversion is sustainable and meets the applicable
108.30standards under section 103G.287, subdivision 5; and
108.31(2) approval of the diversion is given by the legislature.

108.32    Sec. 85. Minnesota Statutes 2012, section 103G.265, subdivision 3, is amended to read:
109.1    Subd. 3. Consumptive use of more than 2,000,000 gallons per day. (a) Except
109.2as provided in paragraph (b), A water use permit or a plan that requires a permit or the
109.3commissioner's approval, involving a consumptive use of more than 2,000,000 gallons per
109.4day average in a 30-day period, may not be granted or approved until:
109.5(1) a determination is made by the commissioner that the water remaining in the
109.6basin of origin will be adequate to meet the basin's water resources needs during the
109.7specified life of the consumptive use is sustainable and meets the applicable standards
109.8under section 103G.287, subdivision 5; and
109.9(2) approval of the consumptive use is given by the legislature.
109.10(b) Legislative approval under paragraph (a), clause (2), is not required for a
109.11consumptive use in excess of 2,000,000 gallons per day average in a 30-day period for:
109.12(1) a domestic water supply, excluding industrial and commercial uses of a
109.13municipal water supply;
109.14(2) agricultural irrigation and processing of agricultural products;
109.15(3) construction and mine land dewatering;
109.16(4) pollution abatement or remediation; and
109.17(5) fish and wildlife enhancement projects using surface water sources.

109.18    Sec. 86. Minnesota Statutes 2012, section 103G.271, subdivision 6, is amended to read:
109.19    Subd. 6. Water use permit processing fee. (a) Except as described in paragraphs
109.20(b) to (f), a water use permit processing fee must be prescribed by the commissioner in
109.21accordance with the schedule of fees in this subdivision for each water use permit in force
109.22at any time during the year. Fees collected under this paragraph are credited to the water
109.23management account in the natural resources fund. The schedule is as follows, with the
109.24stated fee in each clause applied to the total amount appropriated:
109.25    (1) $140 for amounts not exceeding 50,000,000 gallons per year;
109.26    (2) $3.50 for residential use, $15 per 1,000,000 gallons for amounts greater than
109.2750,000,000 gallons but less than 100,000,000 gallons per year;
109.28    (3) $4 (2) for use for metallic mine dewatering, mineral processing, and wood
109.29products processing, $8 per 1,000,000 gallons for amounts greater than 100,000,000
109.30gallons but less than 150,000,000 gallons per year;
109.31    (4) $4.50 (3) for use for agricultural irrigation, including sod farms, orchards, and
109.32nurseries, and for livestock watering, $22 per 1,000,000 gallons for amounts greater than
109.33150,000,000 gallons but less than 200,000,000 gallons per year;
109.34    (5) $5 (4) for nonagricultural irrigation, $70 per 1,000,000 gallons for amounts
109.35greater than 200,000,000 gallons but less than 250,000,000 gallons per year; and
110.1    (6) $5.50 (5) for all other uses, $30 per 1,000,000 gallons for amounts greater than
110.2250,000,000 gallons but less than 300,000,000 gallons per year;
110.3    (7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less
110.4than 350,000,000 gallons per year;
110.5    (8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but
110.6less than 400,000,000 gallons per year;
110.7    (9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less
110.8than 450,000,000 gallons per year;
110.9    (10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but
110.10less than 500,000,000 gallons per year; and
110.11    (11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.
110.12    (b) For once-through cooling systems, a water use processing fee must be prescribed
110.13by the commissioner in accordance with the following schedule of fees for each water use
110.14permit in force at any time during the year:
110.15    (1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and
110.16    (2) for all other users, $420 per 1,000,000 gallons.
110.17    (c) The fee is payable based on the amount of water appropriated during the year
110.18and, except as provided in paragraph (f), the minimum fee is $100 $140.
110.19    (d) For water use processing fees other than once-through cooling systems:
110.20    (1) the fee for a city of the first class may not exceed $250,000 $275,000 per year;
110.21    (2) the fee for other entities for any permitted use may not exceed:
110.22    (i) $60,000 $66,000 per year for an entity holding three or fewer permits;
110.23    (ii) $90,000 $99,000 per year for an entity holding four or five permits; or
110.24    (iii) $300,000 $330,000 per year for an entity holding more than five permits;
110.25    (3) the fee for agricultural wild rice irrigation may not exceed $750 per year;
110.26    (4) the fee for a municipality that furnishes electric service and cogenerates steam
110.27for home heating may not exceed $10,000 for its permit for water use related to the
110.28cogeneration of electricity and steam; and
110.29    (5) no fee is required for a project involving the appropriation of surface water to
110.30prevent flood damage or to remove flood waters during a period of flooding, as determined
110.31by the commissioner.
110.32    (e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two
110.33percent per month calculated from the original due date must be imposed on the unpaid
110.34balance of fees remaining 30 days after the sending of a second notice of fees due. A fee
110.35may not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal
110.36governmental agency holding a water appropriation permit.
111.1    (f) The minimum water use processing fee for a permit issued for irrigation of
111.2agricultural land is $20 for years in which:
111.3    (1) there is no appropriation of water under the permit; or
111.4    (2) the permit is suspended for more than seven consecutive days between May 1
111.5and October 1.
111.6    (g) A surcharge of $30 $75 per million gallons in addition to the fee prescribed
111.7in paragraph (a) shall be applied to the volume of water used in each of the months of
111.8May, June, July, and August, and September that exceeds the volume of water used in
111.9January for municipal water use, irrigation of golf courses, and landscape irrigation. The
111.10surcharge for municipalities with more than one permit shall be determined based on the
111.11total appropriations from all permits that supply a common distribution system.
111.12EFFECTIVE DATE.This section is effective January 1, 2014.

111.13    Sec. 87. Minnesota Statutes 2012, section 103G.282, is amended to read:
111.14103G.282 MONITORING TO EVALUATE IMPACTS FROM
111.15APPROPRIATIONS.
111.16    Subdivision 1. Monitoring equipment. The commissioner may require the
111.17installation and maintenance of install and maintain monitoring equipment to evaluate
111.18water resource impacts from permitted appropriations and proposed projects that require
111.19a permit. Monitoring for water resources that supply more than one appropriator must
111.20be designed to minimize costs to individual appropriators. The cost of drilling additional
111.21monitoring wells must be shared proportionally by all permit holders that are directly
111.22affecting a particular water resources feature. The commissioner may require a permit
111.23holder or a proposer of a project to install and maintain monitoring equipment to evaluate
111.24water resource impacts when the commissioner determines that the permitted or proposed
111.25water use is or has the potential to be the primary source of water resource impacts in an
111.26area.
111.27    Subd. 2. Measuring devices required. Monitoring installations required
111.28 established under subdivision 1 must be equipped with automated measuring devices
111.29to measure water levels, flows, or conditions. The commissioner may require a permit
111.30holder or a proposer of a project to perform water measurements. The commissioner
111.31may determine the frequency of measurements and other measuring methods based on
111.32the quantity of water appropriated or used, the source of water, potential connections to
111.33other water resources, the method of appropriating or using water, seasonal and long-term
111.34changes in water levels, and any other facts supplied to the commissioner.
112.1    Subd. 3. Reports and costs. (a) Records of water measurements under subdivision
112.22 must be kept for each installation. The measurements must be reported annually to the
112.3commissioner on or before February 15 of the following year in a format or on forms
112.4prescribed by the commissioner.
112.5(b) The owner or person permit holder or project proposer in charge of an installation
112.6for appropriating or using waters of the state or a proposal that requires a permit is
112.7responsible for all costs related to establishing and maintaining monitoring installations
112.8and to measuring and reporting data. Monitoring costs for water resources that supply
112.9more than one appropriator may be distributed among all users within a monitoring area
112.10determined by the commissioner and assessed based on volumes of water appropriated
112.11and proximity to resources of concern. The commissioner may require a permit holder or
112.12project proposer utilizing monitoring equipment installed by the commissioner to meet
112.13water measurement requirements to cover the costs related to measuring and reporting data.

112.14    Sec. 88. Minnesota Statutes 2012, section 103G.287, subdivision 1, is amended to read:
112.15    Subdivision 1. Applications for groundwater appropriations; preliminary well
112.16construction approval. (a) Groundwater use permit applications are not complete until
112.17the applicant has supplied:
112.18(1) a water well record as required by section 103I.205, subdivision 9, information
112.19on the subsurface geologic formations penetrated by the well and the formation or aquifer
112.20that will serve as the water source, and geologic information from test holes drilled to
112.21locate the site of the production well;
112.22(2) the maximum daily, seasonal, and annual pumpage rates and volumes being
112.23requested;
112.24(3) information on groundwater quality in terms of the measures of quality
112.25commonly specified for the proposed water use and details on water treatment necessary
112.26for the proposed use;
112.27(4) an inventory of existing wells within 1-1/2 miles of the proposed production well
112.28or within the area of influence, as determined by the commissioner. The inventory must
112.29include information on well locations, depths, geologic formations, depth of the pump or
112.30intake, pumping and nonpumping water levels, and details of well construction; and
112.31(5) the results of an aquifer test completed according to specifications approved by
112.32the commissioner. The test must be conducted at the maximum pumping rate requested
112.33in the application and for a length of time adequate to assess or predict impacts to other
112.34wells and surface water and groundwater resources. The permit applicant is responsible
112.35for all costs related to the aquifer test, including the construction of groundwater and
113.1surface water monitoring installations, and water level readings before, during, and after
113.2the aquifer test; and
113.3(6) the results of any assessments conducted by the commissioner under paragraph (c).
113.4(b) The commissioner may waive an application requirement in this subdivision
113.5if the information provided with the application is adequate to determine whether the
113.6proposed appropriation and use of water is sustainable and will protect ecosystems, water
113.7quality, and the ability of future generations to meet their own needs.
113.8(c) The commissioner shall provide an assessment of a proposed well needing a
113.9groundwater appropriation permit. The commissioner shall evaluate the information
113.10submitted as required under section 103I.205, subdivision 1, paragraph (f), and determine
113.11whether the anticipated appropriation request is likely to meet the applicable requirements
113.12of this chapter. If the appropriation request is likely to meet applicable requirements, the
113.13commissioner shall provide the person submitting the information with a letter providing
113.14preliminary approval to construct the well.

113.15    Sec. 89. Minnesota Statutes 2012, section 103G.287, subdivision 5, is amended to read:
113.16    Subd. 5. Interference with other wells Sustainability standard. The
113.17commissioner may issue water use permits for appropriation from groundwater only if
113.18the commissioner determines that the groundwater use is sustainable to supply the needs
113.19of future generations and the proposed use will not harm ecosystems, degrade water, or
113.20reduce water levels beyond the reach of public water supply and private domestic wells
113.21constructed according to Minnesota Rules, chapter 4725.

113.22    Sec. 90. Minnesota Statutes 2012, section 103G.615, subdivision 2, is amended to read:
113.23    Subd. 2. Fees. (a) The commissioner shall establish a fee schedule for permits to
113.24control or harvest aquatic plants other than wild rice. The fees must be set by rule, and
113.25section 16A.1283 does not apply, but the rule must not take effect until 45 legislative
113.26days after it has been reported to the legislature. The fees shall not exceed $2,500 per
113.27permit and shall be based upon the cost of receiving, processing, analyzing, and issuing
113.28the permit, and additional costs incurred after the application to inspect and monitor
113.29the activities authorized by the permit, and enforce aquatic plant management rules and
113.30permit requirements. The permit fee, in the form of a check or money order payable to the
113.31Minnesota Department of Natural Resources, must accompany each permit application.
113.32When application is made to control two or more shoreline nuisance conditions, only the
113.33larger fee applies. Permit fees are:
114.1    (b) A fee for a permit for the (1) to control of rooted aquatic vegetation plants
114.2by pesticide or mechanical means, $90 for each contiguous parcel of shoreline owned
114.3by an owner may be charged, including a three-year automatic aquatic plant control
114.4device permit. This fee may not be charged for permits issued in connection with purple
114.5loosestrife control or lakewide Eurasian water milfoil control programs. or baywide
114.6invasive aquatic plant management permits;
114.7(2) to control filamentous algae, snails that carry swimmer's itch, or leeches, singly
114.8or in combination, $40 for each contiguous parcel or shoreline with a distinct owner;
114.9(3) for offshore control of submersed aquatic plants by pesticide or mechanical
114.10means, $90;
114.11(4) to control plankton algae or free-floating aquatic plants by lakewide or baywide
114.12application of approved pesticides, $90;
114.13(5) for a commercial mechanical control permit, $100 annually, and;
114.14(6) for a commercial harvest permit, $100 plus $300 for each public water listed on
114.15the application that requires an inspection. An inspection is required for waters with no
114.16previous permit history and may be required at other times to monitor the status of the
114.17aquatic plant population.
114.18(b) There is no permit fee for:
114.19(1) permits to transplant aquatic plants in public waters;
114.20(2) permits to move or remove a floating bog in public waters if the floating bog is
114.21lodged against the permittee's property and has not taken root;
114.22(3) invasive aquatic plant management permits; or
114.23    (c) A fee may not be charged to (4) permits applied for by the state or a federal
114.24governmental agency applying for a permit.
114.25    (d) (c) A fee for a permit for the control of rooted aquatic vegetation in a public
114.26water basin that is 20 acres or less in size shall be is one-half of the fee established under
114.27paragraph (a), clause (1).
114.28(d) If the fee does not accompany the application, the applicant shall be notified and
114.29no action will be taken on the application until the fee is received.
114.30(e) A fee is refundable only when the application is withdrawn prior to field
114.31inspection or issuance or denial of the permit or when the commissioner determines that
114.32the activity does not require a permit.
114.33(e) (f) The money received for the permits under this subdivision shall be deposited
114.34in the treasury and credited to the water recreation account in the natural resources fund.
115.1(f) (g) The fee for processing a notification to request authorization for work under
115.2a general permit is $30, until the commissioner establishes a fee by rule as provided
115.3under this subdivision.

115.4    Sec. 91. Minnesota Statutes 2012, section 103I.205, subdivision 1, is amended to read:
115.5    Subdivision 1. Notification required. (a) Except as provided in paragraphs (d)
115.6and (e), a person may not construct a well until a notification of the proposed well on a
115.7form prescribed by the commissioner is filed with the commissioner with the filing fee in
115.8section 103I.208, and, when applicable, the person has met the requirements of paragraph
115.9(f). If after filing the well notification an attempt to construct a well is unsuccessful, a
115.10new notification is not required unless the information relating to the successful well
115.11has substantially changed.
115.12(b) The property owner, the property owner's agent, or the well contractor where a
115.13well is to be located must file the well notification with the commissioner.
115.14(c) The well notification under this subdivision preempts local permits and
115.15notifications, and counties or home rule charter or statutory cities may not require a
115.16permit or notification for wells unless the commissioner has delegated the permitting or
115.17notification authority under section 103I.111.
115.18(d) A person who is an individual that constructs a drive point well on property
115.19owned or leased by the individual for farming or agricultural purposes or as the individual's
115.20place of abode must notify the commissioner of the installation and location of the well.
115.21The person must complete the notification form prescribed by the commissioner and mail
115.22it to the commissioner by ten days after the well is completed. A fee may not be charged
115.23for the notification. A person who sells drive point wells at retail must provide buyers
115.24with notification forms and informational materials including requirements regarding
115.25wells, their location, construction, and disclosure. The commissioner must provide the
115.26notification forms and informational materials to the sellers.
115.27(e) A person may not construct a monitoring well until a permit is issued by the
115.28commissioner for the construction. If after obtaining a permit an attempt to construct a
115.29well is unsuccessful, a new permit is not required as long as the initial permit is modified
115.30to indicate the location of the successful well.
115.31(f) When the operation of a well will require an appropriation permit from the
115.32commissioner of natural resources, a person may not begin construction of the well until
115.33the person submits the following information to the commissioner of natural resources:
115.34(1) the location of the well;
115.35(2) the formation or aquifer that will serve as the water source;
116.1(3) the maximum daily, seasonal, and annual pumpage rates and volumes that will
116.2be requested in the appropriation permit; and
116.3(4) other information requested by the commissioner of natural resources that
116.4is necessary to conduct the preliminary assessment required under section 103G.287,
116.5subdivision 1, paragraph (c).
116.6The person may begin construction after receiving preliminary approval from the
116.7commissioner of natural resources.

116.8    Sec. 92. Minnesota Statutes 2012, section 103I.601, is amended by adding a
116.9subdivision to read:
116.10    Subd. 4a. Exploratory boring inspection fee. For each proposed exploratory
116.11boring identified on the map submitted under subdivision 4, an explorer must submit a fee
116.12of $2,000 to the commissioner of natural resources. The fee must be credited to the mineral
116.13data and inspections administration account established in section 93.60 and is appropriated
116.14to the commissioner of natural resources for the reasonable costs incurred for inspections
116.15of exploratory borings by the commissioner of natural resources or the commissioner's
116.16representative. The fee is nonrefundable, even if the exploratory boring is not conducted.

116.17    Sec. 93. Minnesota Statutes 2012, section 114D.50, subdivision 4, is amended to read:
116.18    Subd. 4. Expenditures; accountability. (a) A project receiving funding from the
116.19clean water fund must meet or exceed the constitutional requirements to protect, enhance,
116.20and restore water quality in lakes, rivers, and streams and to protect groundwater and
116.21drinking water from degradation. Priority may be given to projects that meet more than
116.22one of these requirements. A project receiving funding from the clean water fund shall
116.23include measurable outcomes, as defined in section 3.303, subdivision 10, and a plan for
116.24measuring and evaluating the results. A project must be consistent with current science
116.25and incorporate state-of-the-art technology.
116.26(b) Money from the clean water fund shall be expended to balance the benefits
116.27across all regions and residents of the state.
116.28(c) A state agency or other recipient of a direct appropriation from the clean
116.29water fund must compile and submit all information for proposed and funded projects
116.30or programs, including the proposed measurable outcomes and all other items required
116.31under section 3.303, subdivision 10, to the Legislative Coordinating Commission as soon
116.32as practicable or by January 15 of the applicable fiscal year, whichever comes first. The
116.33Legislative Coordinating Commission must post submitted information on the Web site
116.34required under section 3.303, subdivision 10, as soon as it becomes available. Information
117.1classified as not public under section 13D.05, subdivision 3, paragraph (d), is not required
117.2to be placed on the Web site.
117.3(d) Grants funded by the clean water fund must be implemented according to section
117.416B.98 and must account for all expenditures. Proposals must specify a process for any
117.5regranting envisioned. Priority for grant proposals must be given to proposals involving
117.6grants that will be competitively awarded.
117.7(e) Money from the clean water fund may only be spent on projects that benefit
117.8Minnesota waters.
117.9(f) When practicable, a direct recipient of an appropriation from the clean water fund
117.10shall prominently display on the recipient's Web site home page the legacy logo required
117.11under Laws 2009, chapter 172, article 5, section 10, as amended by Laws 2010, chapter
117.12361, article 3, section 5, accompanied by the phrase "Click here for more information."
117.13When a person clicks on the legacy logo image, the Web site must direct the person to
117.14a Web page that includes both the contact information that a person may use to obtain
117.15additional information, as well as a link to the Legislative Coordinating Commission Web
117.16site required under section 3.303, subdivision 10.
117.17(g) Future eligibility for money from the clean water fund is contingent upon a state
117.18agency or other recipient satisfying all applicable requirements in this section, as well as
117.19any additional requirements contained in applicable session law.
117.20(h) Money from the clean water fund may be used to leverage federal funds through
117.21execution of formal project partnership agreements with federal agencies consistent with
117.22respective federal agency partnership agreement requirements.

117.23    Sec. 94. [115.84] WASTEWATER LABORATORY CERTIFICATION.
117.24    Subdivision 1. Wastewater laboratory certification required. (a) Laboratories
117.25performing wastewater or water analytical laboratory work, the results of which are
117.26reported to the agency to determine compliance with a national pollutant discharge
117.27elimination system (NPDES) permit condition or other regulatory document, must be
117.28certified according to this section.
117.29(b) This section does not apply to:
117.30(1) laboratories that are private and for-profit;
117.31(2) laboratories that perform drinking water analyses; or
117.32(3) laboratories that perform remediation program analyses, such as Superfund or
117.33petroleum analytical work.
117.34(c) Until adoption of rules under subdivision 2, laboratories required to be certified
117.35under this section that submit data to the agency must register by submitting registration
118.1information required by the agency or be certified or accredited by a recognized authority,
118.2such as the commissioner of health under sections 144.97 to 144.99, for the analytical
118.3methods required by the agency.
118.4    Subd. 2. Rules. The agency may adopt rules to govern certification of laboratories
118.5according to this section. Notwithstanding section 16A.1283, the agency may adopt
118.6rules establishing fees.
118.7    Subd. 3. Fees. (a) Until the agency adopts a rule establishing fees for certification,
118.8the agency shall collect fees from laboratories registering with the agency but not
118.9accredited by the commissioner of health under sections 144.97 to 144.99, in amounts
118.10necessary to cover the reasonable costs of the certification program, including reviewing
118.11applications, issuing certifications, and conducting audits and compliance assistance.
118.12(b) Fees under this section must be based on the number, type, and complexity of
118.13analytical methods that laboratories are certified to perform.
118.14(c) Revenue from fees charged by the agency for certification shall be credited to
118.15the environmental fund.
118.16    Subd. 4. Enforcement. (a) The commissioner may deny, suspend, or revoke
118.17wastewater laboratory certification for, but is not limited to, any of the following reasons:
118.18fraud, failure to follow applicable requirements, failure to respond to documented
118.19deficiencies or complete corrective actions necessary to address deficiencies, failure to pay
118.20certification fees, or other violations of federal or state law.
118.21(b) This section and the rules adopted under it may be enforced by any means
118.22provided in section 115.071.

118.23    Sec. 95. Minnesota Statutes 2012, section 115A.1320, subdivision 1, is amended to read:
118.24    Subdivision 1. Duties of the agency. (a) The agency shall administer sections
118.25115A.1310 to 115A.1330.
118.26    (b) The agency shall establish procedures for:
118.27    (1) receipt and maintenance of the registration statements and certifications filed
118.28with the agency under section 115A.1312; and
118.29    (2) making the statements and certifications easily available to manufacturers,
118.30retailers, and members of the public.
118.31    (c) The agency shall annually review the value of the following variables that are
118.32part of the formula used to calculate a manufacturer's annual registration fee under section
118.33115A.1314, subdivision 1 :
118.34    (1) the proportion of sales of video display devices sold to households that
118.35manufacturers are required to recycle;
119.1    (2) the estimated per-pound price of recycling covered electronic devices sold to
119.2households;
119.3    (3) the base registration fee; and
119.4    (4) the multiplier established for the weight of covered electronic devices collected
119.5in section 115A.1314, subdivision 1, paragraph (d). If the agency determines that any of
119.6these values must be changed in order to improve the efficiency or effectiveness of the
119.7activities regulated under sections 115A.1312 to 115A.1330, the agency shall submit
119.8recommended changes and the reasons for them to the chairs of the senate and house of
119.9representatives committees with jurisdiction over solid waste policy.
119.10    (d) By January 15 each year, beginning in 2008, the agency shall calculate estimated
119.11sales of video display devices sold to households by each manufacturer during the preceding
119.12program year, based on national sales data, and forward the estimates to the department.
119.13    (e) The agency shall provide a report to the governor and the legislature on the
119.14implementation of sections 115A.1310 to 115A.1330. For each program year, the report
119.15must discuss the total weight of covered electronic devices recycled and a summary
119.16of information in the reports submitted by manufacturers and recyclers under section
119.17115A.1316 . The report must also discuss the various collection programs used by
119.18manufacturers to collect covered electronic devices; information regarding covered
119.19electronic devices that are being collected by persons other than registered manufacturers,
119.20collectors, and recyclers; and information about covered electronic devices, if any, being
119.21disposed of in landfills in this state. The report must include a description of enforcement
119.22actions under sections 115A.1310 to 115A.1330. The agency may include in its report
119.23other information received by the agency regarding the implementation of sections
119.24115A.1312 to 115A.1330. The report must be done in conjunction with the report required
119.25under section 115D.10 115A.121.
119.26    (f) The agency shall promote public participation in the activities regulated under
119.27sections 115A.1312 to 115A.1330 through public education and outreach efforts.
119.28    (g) The agency shall enforce sections 115A.1310 to 115A.1330 in the manner
119.29provided by sections 115.071, subdivisions 1, 3, 4, 5, and 6; and 116.072, except for those
119.30provisions enforced by the department, as provided in subdivision 2. The agency may
119.31revoke a registration of a collector or recycler found to have violated sections 115A.1310
119.32to 115A.1330.
119.33    (h) The agency shall facilitate communication between counties, collection and
119.34recycling centers, and manufacturers to ensure that manufacturers are aware of video
119.35display devices available for recycling.
120.1    (i) The agency shall develop a form retailers must use to report information to
120.2manufacturers under section 115A.1318 and post it on the agency's Web site.
120.3    (j) The agency shall post on its Web site the contact information provided by each
120.4manufacturer under section 115A.1318, paragraph (e).

120.5    Sec. 96. [115A.141] CARPET PRODUCT STEWARDSHIP PROGRAM;
120.6STEWARDSHIP PLAN.
120.7    Subdivision 1. Definitions. For purposes of this section, the following terms have
120.8the meanings given:
120.9(1) "brand" means a name, symbol, word, or mark that identifies carpet, rather than its
120.10components, and attributes the carpet to the owner or licensee of the brand as the producer;
120.11(2) "carpet" means a manufactured article that is used in commercial or single or
120.12multifamily residential buildings, is affixed or placed on the floor or building walking
120.13surface as a decorative or functional building interior or exterior feature, and is primarily
120.14constructed of a top visible surface of synthetic face fibers or yarns or tufts attached to a
120.15backing system derived from synthetic or natural materials. Carpet includes, but is not
120.16limited to, a commercial or residential broadloom carpet or modular carpet tiles. Carpet
120.17includes a pad or underlayment used in conjunction with a carpet. Carpet does not include
120.18handmade rugs, area rugs, or mats;
120.19(3) "discarded carpet" means carpet that is no longer used for its manufactured
120.20purpose;
120.21(4) "producer" means a person that:
120.22(i) has legal ownership of the brand, brand name, or cobrand of carpet sold in the state;
120.23(ii) imports carpet branded by a producer that meets subclause (i) when the producer
120.24has no physical presence in the United States;
120.25(iii) if subclauses (i) and (ii) do not apply, makes unbranded carpet that is sold
120.26in the state; or
120.27(iv) sells carpet at wholesale or retail, does not have legal ownership of the brand,
120.28and elects to fulfill the responsibilities of the producer for the carpet by certifying that
120.29election in writing to the commissioner;
120.30(5) "recycling" means the process of collecting and preparing recyclable materials and
120.31reusing the materials in their original form or using them in manufacturing processes that
120.32do not cause the destruction of recyclable materials in a manner that precludes further use;
120.33(6) "retailer" means any person who offers carpet for sale at retail in the state;
121.1(7) "reuse" means donating or selling a collected carpet back into the market for
121.2its original intended use, when the carpet retains its original purpose and performance
121.3characteristics;
121.4(8) "sale" or "sell" means transfer of title of carpet for consideration, including a
121.5remote sale conducted through a sales outlet, catalog, Web site, or similar electronic
121.6means. Sale or sell includes a lease through which carpet is provided to a consumer by a
121.7producer, wholesaler, or retailer;
121.8(9) "stewardship assessment" means the amount added to the purchase price of
121.9carpet sold in the state that is necessary to cover the cost of collecting, transporting, and
121.10processing postconsumer carpets by the producer or stewardship organization pursuant to
121.11a product stewardship program;
121.12(10) "stewardship organization" means an organization appointed by one or more
121.13producers to act as an agent on behalf of the producer to design, submit, and administer a
121.14product stewardship program under this section; and
121.15(11) "stewardship plan" means a detailed plan describing the manner in which a
121.16product stewardship program under subdivision 2 will be implemented.
121.17    Subd. 2. Product stewardship program. For all carpet sold in the state, producers
121.18must, individually or through a stewardship organization, implement and finance a
121.19statewide product stewardship program that manages carpet by reducing carpet's waste
121.20generation, promoting its reuse and recycling, and providing for negotiation and execution
121.21of agreements to collect, transport, and process carpet for end-of-life recycling and reuse.
121.22    Subd. 3. Requirement for sale. (a) On and after July 1, 2015, no producer,
121.23wholesaler, or retailer may sell carpet or offer carpet for sale in the state unless the carpet's
121.24producer participates in an approved stewardship plan, either individually or through a
121.25stewardship organization.
121.26(b) Each producer must operate a product stewardship program approved by the
121.27agency or enter into an agreement with a stewardship organization to operate, on the
121.28producer's behalf, a product stewardship program approved by the agency.
121.29    Subd. 4. Requirement to submit plan. (a) On or before March 1, 2015, and before
121.30offering carpet for sale in the state, a producer must submit a stewardship plan to the
121.31agency and receive approval of the plan or must submit documentation to the agency that
121.32demonstrates the producer has entered into an agreement with a stewardship organization
121.33to be an active participant in an approved product stewardship program as described in
121.34subdivision 2. A stewardship plan must include all elements required under subdivision 5.
122.1(b) At least every three years, a producer or stewardship organization operating a
122.2product stewardship program must update the stewardship plan and submit the updated
122.3plan to the agency for review and approval.
122.4(c) It is the responsibility of the entities responsible for each stewardship plan to
122.5notify the agency within 30 days of any significant changes or modifications to the plan or
122.6its implementation. Within 30 days of the notification, a written plan revision must be
122.7submitted to the agency for review and approval.
122.8    Subd. 5. Stewardship plan content. A stewardship plan must contain:
122.9(1) certification that the product stewardship program will accept all discarded carpet
122.10regardless of which producer produced the carpet and its individual components;
122.11(2) contact information for the individual and the entity submitting the plan and for
122.12all producers participating in the product stewardship program;
122.13(3) a description of the methods by which discarded carpet will be collected in all
122.14areas in the state without relying on end-of-life fees, including an explanation of how the
122.15collection system will be convenient and adequate to serve the needs of small businesses
122.16and residents in the seven-county metropolitan area initially and expanding to areas
122.17outside of the seven-county metropolitan area starting July 1, 2016;
122.18(4) a description of how the adequacy of the collection program will be monitored
122.19and maintained;
122.20(5) the names and locations of collectors, transporters, and recycling facilities that
122.21will manage discarded carpet;
122.22(6) a description of how the discarded carpet and the carpet's components will
122.23be safely and securely transported, tracked, and handled from collection through final
122.24recycling and processing;
122.25(7) a description of the method that will be used to reuse, deconstruct, or recycle
122.26the discarded carpet to ensure that the product's components, to the extent feasible, are
122.27transformed or remanufactured into finished products for use;
122.28(8) a description of the promotion and outreach activities that will be used to
122.29encourage participation in the collection and recycling programs and how the activities'
122.30effectiveness will be evaluated and the program modified, if necessary;
122.31(9) the proposed stewardship assessment. The producer or stewardship organization
122.32shall propose a stewardship assessment for any carpet sold in the state. The proposed
122.33stewardship assessment shall be reviewed by an independent auditor to ensure that
122.34the assessment does not exceed the costs of the product stewardship program and the
122.35independent auditor shall recommend an amount for the stewardship assessment;
123.1(10) evidence of adequate insurance and financial assurance that may be required for
123.2collection, handling, and disposal operations;
123.3(11) five-year performance goals, including an estimate of the percentage of
123.4discarded carpet that will be collected, reused, and recycled during each of the first five
123.5years of the stewardship plan. The performance goals must include a specific escalating
123.6goal for the amount of discarded carpet that will be collected and recycled and reused
123.7during each year of the plan. The performance goals must be based on:
123.8(i) the most recent collection data available for the state;
123.9(ii) the amount of carpet disposed of annually;
123.10(iii) the weight of the carpet that is expected to be available for collection annually;
123.11and
123.12(iv) actual collection data from other existing stewardship programs.
123.13The stewardship plan must state the methodology used to determine these goals;
123.14(12) carpet design changes that will be considered to reduce toxicity, water use, or
123.15energy use or to increase recycled content, recyclability, or carpet longevity; and
123.16(13) a discussion of market development opportunities to expand use of recovered
123.17carpet, with consideration of expanding processing activity near areas of collection.
123.18    Subd. 6. Consultation required. (a) Each stewardship organization or individual
123.19producer submitting a stewardship plan must consult with stakeholders including retailers,
123.20installers, collectors, recyclers, local government, customers, and citizens during the
123.21development of the plan, solicit stakeholder comments, and attempt to address any
123.22stakeholder concerns regarding the plan before submitting the plan to the agency for review.
123.23(b) The producer or stewardship organization must invite comments from local
123.24governments, communities, and citizens to report their satisfaction with services, including
123.25education and outreach, provided by the product stewardship program. The information
123.26must be submitted to the agency and used by the agency in reviewing proposed updates or
123.27changes to the stewardship plan.
123.28    Subd. 7. Agency review and approval. (a) Within 90 days after receipt of a proposed
123.29stewardship plan, the agency shall determine whether the plan complies with subdivision
123.305. If the agency approves a plan, the agency shall notify the applicant of the plan approval
123.31in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of
123.32the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must
123.33submit a revised plan to the agency within 60 days after receiving notice of rejection.
123.34(b) Any proposed changes to a stewardship plan must be approved by the agency
123.35in writing.
124.1    Subd. 8. Plan availability. All draft and approved stewardship plans shall be
124.2placed on the agency's Web site for at least 30 days and made available at the agency's
124.3headquarters for public review and comment.
124.4    Subd. 9. Conduct authorized. A producer or stewardship organization that
124.5organizes collection, transport, and processing of carpet under this section is immune
124.6from liability for the conduct under state laws relating to antitrust, restraint of trade,
124.7unfair trade practices, and other regulation of trade or commerce only to the extent that
124.8the conduct is necessary to plan and implement the producer's or organization's chosen
124.9organized collection or recycling system.
124.10    Subd. 10. Responsibility of producers. (a) On and after the date of implementation
124.11of a product stewardship program under this section, a producer of carpet must add the
124.12stewardship assessment, as established according to subdivision 5, clause (9), to the cost
124.13of the carpet sold to retailers and distributors in the state by the producer.
124.14(b) Producers of carpet or the stewardship organization shall provide consumers
124.15with educational materials regarding the stewardship assessment and product stewardship
124.16program. The materials must include, but are not limited to, information regarding available
124.17end-of-life management options for carpet offered through the product stewardship
124.18program and information that notifies consumers that a charge for the operation of the
124.19product stewardship program is included in the purchase price of carpet sold in the state.
124.20    Subd. 11. Responsibility of retailers. (a) On and after July 1, 2015, no carpet may
124.21be sold in the state unless the carpet's producer is participating in an approved stewardship
124.22plan.
124.23(b) On and after the implementation date of a product stewardship program under
124.24this section, each retailer or distributor, as applicable, must ensure that the full amount of
124.25the stewardship assessment added to the cost of carpet by producers under subdivision 10
124.26is included in the purchase price of all carpet sold in the state.
124.27(c) Any retailer may participate, on a voluntary basis, as a designated collection
124.28point pursuant to a product stewardship program under this section and in accordance
124.29with applicable law.
124.30(d) No retailer or distributor shall be found to be in violation of this subdivision if,
124.31on the date the carpet was ordered from the producer or its agent, the producer was listed
124.32as compliant on the agency's Web site according to subdivision 14.
124.33    Subd. 12. Stewardship reports. Beginning October 1, 2016, producers of carpet
124.34sold in the state must individually or through a stewardship organization submit an
124.35annual report to the agency describing the product stewardship program. At a minimum,
124.36the report must contain:
125.1(1) a description of the methods used to collect, transport, and process carpet in all
125.2regions of the state;
125.3(2) the weight of all carpet collected in all regions of the state and a comparison to
125.4the performance goals and recycling rates established in the stewardship plan;
125.5(3) the amount of unwanted carpet collected in the state by method of disposition,
125.6including reuse, recycling, and other methods of processing;
125.7(4) identification of the facilities processing carpet and the number and weight
125.8processed at each facility;
125.9(5) an evaluation of the program's funding mechanism;
125.10(6) samples of educational materials provided to consumers and an evaluation of the
125.11effectiveness of the materials and the methods used to disseminate the materials; and
125.12(7) a description of progress made toward achieving carpet design changes according
125.13to subdivision 5, clause (12).
125.14    Subd. 13. Sales information. Sales information provided to the commissioner
125.15under this section is classified as private or nonpublic data, as specified in section
125.16115A.06, subdivision 13.
125.17    Subd. 14. Agency responsibilities. The agency shall provide, on its Web site, a
125.18list of all compliant producers and brands participating in stewardship plans that the
125.19agency has approved and a list of all producers and brands the agency has identified as
125.20noncompliant with this section.
125.21    Subd. 15. Local government responsibilities. (a) A city, county, or other public
125.22agency may choose to participate voluntarily in a carpet product stewardship program.
125.23(b) Cities, counties, and other public agencies are encouraged to work with producers
125.24and stewardship organizations to assist in meeting product stewardship program recycling
125.25obligations, by providing education and outreach or using other strategies.
125.26(c) A city, county, or other public agency that participates in a product stewardship
125.27program must report for the first year of the program to the agency using the reporting
125.28form provided by the agency on the cost savings as a result of participation and describe
125.29how the savings were used.
125.30    Subd. 16. Administrative fee. (a) The stewardship organization or individual
125.31producer submitting a stewardship plan shall pay an annual administrative fee to the
125.32commissioner. The agency may establish a variable fee based on relevant factors,
125.33including, but not limited to, the portion of carpet sold in the state by members of the
125.34organization compared to the total amount of carpet sold in the state by all organizations
125.35submitting a stewardship plan.
126.1    (b) Prior to July 1, 2015, and before July 1 annually thereafter, the agency shall
126.2identify the costs it incurs under this section. The agency shall set the fee at an amount
126.3that, when paid by every stewardship organization or individual producer that submits a
126.4stewardship plan, is adequate to reimburse the agency's full costs of administering this
126.5section. The total amount of annual fees collected under this subdivision must not exceed
126.6the amount necessary to reimburse costs incurred by the agency to administer this section.
126.7    (c) A stewardship organization or individual producer subject to this subdivision
126.8must pay the agency's administrative fee under paragraph (a) on or before July 1, 2015 and
126.9annually thereafter. Each year after the initial payment, the annual administrative fee may
126.10not exceed five percent of the aggregate stewardship assessment added to the cost of all
126.11carpet sold by producers in the state for the preceding calendar year.
126.12    (d) All fees received under this section shall be deposited to the state treasury and
126.13credited to a product stewardship account in the Special Revenue Fund. Money in the
126.14account is appropriated to the commissioner for the purpose of reimbursing the agency's
126.15costs incurred to administer this section.

126.16    Sec. 97. [115A.1415] ARCHITECTURAL PAINT; PRODUCT STEWARDSHIP
126.17PROGRAM; STEWARDSHIP PLAN.
126.18    Subdivision 1. Definitions. For purposes of this section, the following terms have
126.19the meanings given:
126.20(1) "architectural paint" means interior and exterior architectural coatings sold in
126.21containers of five gallons or less. Architectural paint does not include industrial coatings,
126.22original equipment coatings, or specialty coatings;
126.23(2) "brand" means a name, symbol, word, or mark that identifies architectural paint,
126.24rather than its components, and attributes the paint to the owner or licensee of the brand as
126.25the producer;
126.26(3) "discarded paint" means architectural paint that is no longer used for its
126.27manufactured purpose;
126.28(4) "producer" means a person that:
126.29(i) has legal ownership of the brand, brand name, or cobrand of architectural paint
126.30sold in the state;
126.31(ii) imports architectural paint branded by a producer that meets subclause (i) when
126.32the producer has no physical presence in the United States;
126.33(iii) if subclauses (i) and (ii) do not apply, makes unbranded architectural paint
126.34that is sold in the state; or
127.1(iv) sells architectural paint at wholesale or retail, does not have legal ownership of
127.2the brand, and elects to fulfill the responsibilities of the producer for the architectural paint
127.3by certifying that election in writing to the commissioner;
127.4(5) "recycling" means the process of collecting and preparing recyclable materials and
127.5reusing the materials in their original form or using them in manufacturing processes that
127.6do not cause the destruction of recyclable materials in a manner that precludes further use;
127.7(6) "retailer" means any person who offers architectural paint for sale at retail in
127.8the state;
127.9(7) "reuse" means donating or selling collected architectural paint back into the
127.10market for its original intended use, when the architectural paint retains its original
127.11purpose and performance characteristics;
127.12(8) "sale" or "sell" means transfer of title of architectural paint for consideration,
127.13including a remote sale conducted through a sales outlet, catalog, Web site, or similar
127.14electronic means. Sale or sell includes a lease through which architectural paint is
127.15provided to a consumer by a producer, wholesaler, or retailer;
127.16(9) "stewardship assessment" means the amount added to the purchase price of
127.17architectural paint sold in the state that is necessary to cover the cost of collecting,
127.18transporting, and processing postconsumer architectural paint by the producer or
127.19stewardship organization pursuant to a product stewardship program;
127.20(10) "stewardship organization" means an organization appointed by one or more
127.21producers to act as an agent on behalf of the producer to design, submit, and administer a
127.22product stewardship program under this section; and
127.23(11) "stewardship plan" means a detailed plan describing the manner in which a
127.24product stewardship program under subdivision 2 will be implemented.
127.25    Subd. 2. Product stewardship program. For architectural paint sold in the state,
127.26producers must, individually or through a stewardship organization, implement and
127.27finance a statewide product stewardship program that manages the architectural paint by
127.28reducing the paint's waste generation, promoting its reuse and recycling, and providing for
127.29negotiation and execution of agreements to collect, transport, and process the architectural
127.30paint for end-of-life recycling and reuse.
127.31    Subd. 3. Requirement for sale. (a) On and after July 1, 2014, or three months after
127.32program plan approval, whichever is sooner, no producer, wholesaler, or retailer may sell
127.33or offer for sale in the state architectural paint unless the paint's producer participates in an
127.34approved stewardship plan, either individually or through a stewardship organization.
128.1(b) Each producer must operate a product stewardship program approved by the
128.2agency or enter into an agreement with a stewardship organization to operate, on the
128.3producer's behalf, a product stewardship program approved by the agency.
128.4    Subd. 4. Requirement to submit plan. (a) On or before March 1, 2014, and before
128.5offering architectural paint for sale in the state, a producer must submit a stewardship
128.6plan to the agency and receive approval of the plan or must submit documentation to the
128.7agency that demonstrates the producer has entered into an agreement with a stewardship
128.8organization to be an active participant in an approved product stewardship program as
128.9described in subdivision 2. A stewardship plan must include all elements required under
128.10subdivision 5.
128.11(b) An amendment to the plan, if determined necessary by the commissioner, must
128.12be submitted every five years.
128.13(c) It is the responsibility of the entities responsible for each stewardship plan to
128.14notify the agency within 30 days of any significant changes or modifications to the plan or
128.15its implementation. Within 30 days of the notification, a written plan revision must be
128.16submitted to the agency for review and approval.
128.17    Subd. 5. Stewardship plan content. A stewardship plan must contain:
128.18(1) certification that the product stewardship program will accept all discarded
128.19paint regardless of which producer produced the architectural paint and its individual
128.20components;
128.21(2) contact information for the individual and the entity submitting the plan, a list of
128.22all producers participating in the product stewardship program, and the brands covered by
128.23the product stewardship program;
128.24(3) a description of the methods by which the discarded paint will be collected in all
128.25areas in the state without relying on end-of-life fees, including an explanation of how the
128.26collection system will be convenient and adequate to serve the needs of small businesses
128.27and residents in both urban and rural areas on an ongoing basis and a discussion of how
128.28the existing household hazardous waste infrastructure will be considered when selecting
128.29collection sites;
128.30(4) a description of how the adequacy of the collection program will be monitored
128.31and maintained;
128.32(5) the names and locations of collectors, transporters, and recyclers that will
128.33manage discarded paint;
128.34(6) a description of how the discarded paint and the paint's components will be
128.35safely and securely transported, tracked, and handled from collection through final
128.36recycling and processing;
129.1(7) a description of the method that will be used to reuse, deconstruct, or recycle
129.2the discarded paint to ensure that the paint's components, to the extent feasible, are
129.3transformed or remanufactured into finished products for use;
129.4(8) a description of the promotion and outreach activities that will be used to
129.5encourage participation in the collection and recycling programs and how the activities'
129.6effectiveness will be evaluated and the program modified, if necessary;
129.7(9) the proposed stewardship assessment. The producer or stewardship organization
129.8shall propose a uniform stewardship assessment for any architectural paint sold in the
129.9state. The proposed stewardship assessment shall be reviewed by an independent auditor
129.10to ensure that the assessment does not exceed the costs of the product stewardship program
129.11and the independent auditor shall recommend an amount for the stewardship assessment.
129.12The agency must approve the stewardship assessment;
129.13(10) evidence of adequate insurance and financial assurance that may be required for
129.14collection, handling, and disposal operations;
129.15(11) five-year performance goals, including an estimate of the percentage of
129.16discarded paint that will be collected, reused, and recycled during each of the first five
129.17years of the stewardship plan. The performance goals must include a specific goal for the
129.18amount of discarded paint that will be collected and recycled and reused during each year
129.19of the plan. The performance goals must be based on:
129.20(i) the most recent collection data available for the state;
129.21(ii) the estimated amount of architectural paint disposed of annually;
129.22(iii) the weight of the architectural paint that is expected to be available for collection
129.23annually; and
129.24(iv) actual collection data from other existing stewardship programs.
129.25The stewardship plan must state the methodology used to determine these goals; and
129.26(12) a discussion of the status of end markets for collected architectural paint and
129.27what, if any, additional end markets are needed to improve the functioning of the program.
129.28    Subd. 6. Consultation required. Each stewardship organization or individual
129.29producer submitting a stewardship plan must consult with stakeholders including
129.30retailers, contractors, collectors, recyclers, local government, and customers during the
129.31development of the plan.
129.32    Subd. 7. Agency review and approval. (a) Within 90 days after receipt of a proposed
129.33stewardship plan, the agency shall determine whether the plan complies with subdivision
129.344. If the agency approves a plan, the agency shall notify the applicant of the plan approval
129.35in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of
130.1the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must
130.2submit a revised plan to the agency within 60 days after receiving notice of rejection.
130.3(b) Any proposed changes to a stewardship plan must be approved by the agency
130.4in writing.
130.5    Subd. 8. Plan availability. All draft and approved stewardship plans shall be
130.6placed on the agency's Web site for at least 30 days and made available at the agency's
130.7headquarters for public review and comment.
130.8    Subd. 9. Conduct authorized. A producer or stewardship organization that
130.9organizes collection, transport, and processing of architectural paint under this section
130.10is immune from liability for the conduct under state laws relating to antitrust, restraint
130.11of trade, unfair trade practices, and other regulation of trade or commerce only to the
130.12extent that the conduct is necessary to plan and implement the producer's or organization's
130.13chosen organized collection or recycling system.
130.14    Subd. 10. Responsibility of producers. (a) On and after the date of implementation
130.15of a product stewardship program according to this section, a producer of architectural
130.16paint must add the stewardship assessment, as established under subdivision 5, clause (9),
130.17to the cost of architectural paint sold to retailers and distributors in the state by the producer.
130.18(b) Producers of architectural paint or the stewardship organization shall provide
130.19consumers with educational materials regarding the stewardship assessment and product
130.20stewardship program. The materials must include, but are not limited to, information
130.21regarding available end-of-life management options for architectural paint offered through
130.22the product stewardship program and information that notifies consumers that a charge
130.23for the operation of the product stewardship program is included in the purchase price of
130.24architectural paint sold in the state.
130.25    Subd. 11. Responsibility of retailers. (a) On and after July 1, 2014, or three months
130.26after program plan approval, whichever is sooner, no architectural paint may be sold in the
130.27state unless the paint's producer is participating in an approved stewardship plan.
130.28(b) On and after the implementation date of a product stewardship program
130.29according to this section, each retailer or distributor, as applicable, must ensure that the
130.30full amount of the stewardship assessment added to the cost of paint by producers under
130.31subdivision 10 is included in the purchase price of all architectural paint sold in the state.
130.32(c) Any retailer may participate, on a voluntary basis, as a designated collection
130.33point pursuant to a product stewardship program under this section and in accordance
130.34with applicable law.
131.1(d) No retailer or distributor shall be found to be in violation of this subdivision if,
131.2on the date the architectural paint was ordered from the producer or its agent, the producer
131.3was listed as compliant on the agency's Web site according to subdivision 14.
131.4    Subd. 12. Stewardship reports. Beginning October 1, 2015, producers of
131.5architectural paint sold in the state must individually or through a stewardship organization
131.6submit an annual report to the agency describing the product stewardship program. At a
131.7minimum, the report must contain:
131.8(1) a description of the methods used to collect, transport, and process architectural
131.9paint in all regions of the state;
131.10(2) the weight of all architectural paint collected in all regions of the state and a
131.11comparison to the performance goals and recycling rates established in the stewardship
131.12plan;
131.13(3) the amount of unwanted architectural paint collected in the state by method of
131.14disposition, including reuse, recycling, and other methods of processing;
131.15(4) samples of educational materials provided to consumers and an evaluation of the
131.16effectiveness of the materials and the methods used to disseminate the materials; and
131.17(5) an independent financial audit.
131.18    Subd. 13. Sales information. Sales information provided to the commissioner
131.19under this section is classified as private or nonpublic data, as specified in section
131.20115A.06, subdivision 13.
131.21    Subd. 14. Agency responsibilities. The agency shall provide, on its Web site, a
131.22list of all compliant producers and brands participating in stewardship plans that the
131.23agency has approved and a list of all producers and brands the agency has identified as
131.24noncompliant with this section.
131.25    Subd. 15. Local government responsibilities. (a) A city, county, or other public
131.26agency may choose to participate voluntarily in a product stewardship program.
131.27(b) Cities, counties, and other public agencies are encouraged to work with producers
131.28and stewardship organizations to assist in meeting product stewardship program reuse and
131.29recycling obligations, by providing education and outreach or using other strategies.
131.30(c) A city, county, or other public agency that participates in a product stewardship
131.31program must report for the first year of the program to the agency using the reporting
131.32form provided by the agency on the cost savings as a result of participation and describe
131.33how the savings were used.
131.34    Subd. 16. Administrative fee. (a) The stewardship organization or individual
131.35producer submitting a stewardship plan shall pay an annual administrative fee to the
131.36commissioner. The agency may establish a variable fee based on relevant factors,
132.1including, but not limited to, the portion of architectural paint sold in the state by members
132.2of the organization compared to the total amount of architectural paint sold in the state by
132.3all organizations submitting a stewardship plan.
132.4    (b) Prior to July 1, 2014, and before July 1 annually thereafter, the agency shall
132.5identify the costs it incurs under this section. The agency shall set the fee at an amount
132.6that, when paid by every stewardship organization or individual producer that submits a
132.7stewardship plan, is adequate to reimburse the agency's full costs of administering this
132.8section. The total amount of annual fees collected under this subdivision must not exceed
132.9the amount necessary to reimburse costs incurred by the agency to administer this section.
132.10    (c) A stewardship organization or individual producer subject to this subdivision
132.11must pay the agency's administrative fee under paragraph (a) on or before July 1, 2014 and
132.12annually thereafter. Each year after the initial payment, the annual administrative fee may
132.13not exceed five percent of the aggregate stewardship assessment added to the cost of all
132.14architectural paint sold by producers in the state for the preceding calendar year.
132.15    (d) All fees received under this section shall be deposited to the state treasury and
132.16credited to a product stewardship account in the Special Revenue Fund. Money in the
132.17account is appropriated to the commissioner for the purpose of reimbursing the agency's
132.18costs incurred to administer this section.

132.19    Sec. 98. [115A.142] PRIMARY BATTERIES; PRODUCT STEWARDSHIP
132.20PROGRAM; STEWARDSHIP PLAN.
132.21    Subdivision 1. Definitions. For purposes of this section, the following terms have
132.22the meaning given:
132.23(1) "brand" means a name, symbol, word, or mark that identifies a primary battery,
132.24rather than its components, and attributes the battery to the owner or licensee of the brand
132.25as the producer;
132.26(2) "discarded battery" means a primary battery that is no longer used for its
132.27manufactured purpose;
132.28    (3) "primary battery" means a battery weighing two kilograms or less that is not
132.29designed to be electrically recharged, including, but not limited to, alkaline manganese,
132.30carbon zinc, lithium, silver oxide, and zinc air batteries. Nonremovable batteries and
132.31medical devices as defined in the federal Food, Drug, and Cosmetic Act, United States
132.32Code, title 21, section 321, paragraph (h), as amended, are exempted from this definition.
132.33(4) "producer" means a person that:
132.34(i) has legal ownership of the brand, brand name, or cobrand of a primary battery
132.35sold in the state;
133.1(ii) imports a primary battery branded by a producer that meets subclause (i) when
133.2the producer has no physical presence in the United States;
133.3(iii) if subclauses (i) and (ii) do not apply, makes an unbranded primary battery
133.4that is sold in the state; or
133.5(iv) sells a primary battery at wholesale or retail, does not have legal ownership
133.6of the brand, and elects to fulfill the responsibilities of the producer for the battery by
133.7certifying that election in writing to the commissioner;
133.8(5) "recycling" means the process of collecting and preparing recyclable materials and
133.9reusing the materials in their original form or using them in manufacturing processes that
133.10do not cause the destruction of recyclable materials in a manner that precludes further use;
133.11(6) "retailer" means any person who offers primary batteries for sale at retail in
133.12the state;
133.13(7) "sale" or "sell" means transfer of title of a primary battery for consideration,
133.14including a remote sale conducted through a sales outlet, catalog, Web site, or similar
133.15electronic means. Sale or sell includes a lease through which a primary battery is provided
133.16to a consumer by a producer, wholesaler, or retailer;
133.17(8) "stewardship organization" means an organization appointed by one or more
133.18producers to act as an agent on behalf of the producer to design, submit, and administer a
133.19product stewardship program under this section; and
133.20(9) "stewardship plan" means a detailed plan describing the manner in which a
133.21product stewardship program under subdivision 2 will be implemented.
133.22    Subd. 2. Product stewardship program. For each primary battery sold in the
133.23state, producers must, individually or through a stewardship organization, implement
133.24and finance a statewide product stewardship program that manages primary batteries by
133.25reducing primary battery waste generation, promoting primary battery recycling, and
133.26providing for negotiation and execution of agreements to collect, transport, and process
133.27primary batteries for end-of-life recycling.
133.28    Subd. 3. Requirement for sale. (a) On and after December 1, 2014, or three months
133.29after program plan approval, whichever is sooner, no producer, wholesaler, or retailer may
133.30sell or offer for sale in the state a primary battery unless the battery's producer participates
133.31in an approved stewardship plan, either individually or through a stewardship organization.
133.32(b) Each producer must operate a product stewardship program approved by the
133.33agency or enter into an agreement with a stewardship organization to operate, on the
133.34producer's behalf, a product stewardship program approved by the agency.
133.35    Subd. 4. Requirement to submit plan. (a) On or before August 1, 2014, and before
133.36offering a primary battery for sale in the state, a producer must submit a stewardship
134.1plan to the agency and receive approval of the plan or must submit documentation to the
134.2agency that demonstrates the producer has entered into an agreement with a stewardship
134.3organization to be an active participant in an approved product stewardship program as
134.4described in subdivision 2. A stewardship plan must include all elements required under
134.5subdivision 5.
134.6(b) An amendment to the plan, if determined necessary by the commissioner, must
134.7be submitted every five years.
134.8(c) It is the responsibility of the entities responsible for each stewardship plan to
134.9notify the agency within 30 days of any significant changes or modifications to the plan or
134.10its implementation. Within 30 days of the notification, a written plan revision must be
134.11submitted to the agency for review and approval.
134.12    Subd. 5. Stewardship plan content. A stewardship plan must contain:
134.13(1) certification that the product stewardship program will accept discarded primary
134.14batteries regardless of which producer produced the batteries and their individual
134.15components;
134.16(2) contact information for the individual and the entity submitting the plan, a list of
134.17all producers participating in the product stewardship program, and the brands covered by
134.18the product stewardship program;
134.19(3) a description of the methods by which the discarded primary batteries will
134.20be collected in all areas in the state without relying on end-of-life fees, including an
134.21explanation of how the collection system will be convenient and adequate to serve the
134.22needs of small businesses and residents in both urban and rural areas on an ongoing basis;
134.23(4) a description of how the adequacy of the collection program will be monitored
134.24and maintained;
134.25(5) the names and locations of collectors, transporters, and recyclers that will
134.26manage discarded batteries;
134.27(6) a description of how the discarded primary batteries and the batteries'
134.28components will be safely and securely transported, tracked, and handled from collection
134.29through final recycling and processing;
134.30(7) a description of the method that will be used to recycle the discarded primary
134.31batteries to ensure that the batteries' components, to the extent feasible, are transformed or
134.32remanufactured into finished batteries for use;
134.33(8) a description of the promotion and outreach activities that will be used to
134.34encourage participation in the collection and recycling programs and how the activities'
134.35effectiveness will be evaluated and the program modified, if necessary;
135.1(9) evidence of adequate insurance and financial assurance that may be required for
135.2collection, handling, and disposal operations;
135.3(10) five-year performance goals, including an estimate of the percentage of
135.4discarded primary batteries that will be collected, reused, and recycled during each of the
135.5first five years of the stewardship plan. The performance goals must include a specific
135.6escalating goal for the amount of discarded primary batteries that will be collected and
135.7recycled during each year of the plan. The performance goals must be based on:
135.8(i) the most recent collection data available for the state;
135.9(ii) the estimated amount of primary batteries disposed of annually;
135.10(iii) the weight of primary batteries that is expected to be available for collection
135.11annually;
135.12(iv) actual collection data from other existing stewardship programs; and
135.13    (v) the market share of the producers participating in the plan.
135.14The stewardship plan must state the methodology used to determine these goals; and
135.15(11) a discussion of the status of end markets for discarded batteries and what, if any,
135.16additional end markets are needed to improve the functioning of the program.
135.17    Subd. 6. Consultation required. Each stewardship organization or individual
135.18producer submitting a stewardship plan must consult with stakeholders including retailers,
135.19collectors, recyclers, local government, and customers during the development of the plan.
135.20    Subd. 7. Agency review and approval. (a) Within 90 days after receipt of a proposed
135.21stewardship plan, the agency shall determine whether the plan complies with subdivision
135.225. If the agency approves a plan, the agency shall notify the applicant of the plan approval
135.23in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of
135.24the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must
135.25submit a revised plan to the agency within 60 days after receiving notice of rejection.
135.26(b) Any proposed changes to a stewardship plan must be approved by the agency
135.27in writing.
135.28    Subd. 8. Plan availability. All draft and approved stewardship plans shall be
135.29placed on the agency's Web site for at least 30 days and made available at the agency's
135.30headquarters for public review and comment.
135.31    Subd. 9. Conduct authorized. A producer or stewardship organization that
135.32organizes collection, transport, and processing of primary batteries under this section
135.33is immune from liability for the conduct under state laws relating to antitrust, restraint
135.34of trade, unfair trade practices, and other regulation of trade or commerce only to the
135.35extent that the conduct is necessary to plan and implement the producer's or organization's
135.36chosen organized collection or recycling system.
136.1    Subd. 10. Responsibility of retailers. (a) On and after December 1, 2014, or three
136.2months after program plan approval, whichever is sooner, no primary battery may be sold
136.3in the state unless the battery's producer is participating in an approved stewardship plan.
136.4(b) Any retailer may participate, on a voluntary basis, as a designated collection
136.5point pursuant to a product stewardship program under this section and in accordance
136.6with applicable law.
136.7(c) No retailer or distributor shall be found to be in violation of this subdivision if,
136.8on the date the primary battery was ordered from the producer or its agent, the producer
136.9was listed as compliant on the agency's Web site according to subdivision 12.
136.10    Subd. 11. Stewardship reports. Beginning March 1, 2016, producers of primary
136.11batteries sold in the state must individually or through a stewardship organization
136.12submit an annual report to the agency describing the product stewardship program. At a
136.13minimum, the report must contain:
136.14(1) a description of the methods used to collect, transport, and process primary
136.15batteries in all regions of the state;
136.16(2) the weight of all primary batteries collected in all regions of the state and a
136.17comparison to the performance goals and recycling rates established in the stewardship
136.18plan;
136.19(3) the amount of discarded primary batteries collected in the state by method of
136.20disposition, including recycling, and other methods of processing;
136.21(4) samples of educational materials provided to consumers and an evaluation of the
136.22effectiveness of the materials and the methods used to disseminate the materials; and
136.23(5) an independent financial audit of the stewardship organization.
136.24    Subd. 12. Agency responsibilities. The agency shall provide, on its Web site, a
136.25list of all compliant producers and brands participating in stewardship plans that the
136.26agency has approved and a list of all producers and brands the agency has identified as
136.27noncompliant with this section.
136.28    Subd. 13. Sales information. Sales information provided to the commissioner
136.29under this section is classified as private or nonpublic data, as specified in section
136.30115A.06, subdivision 13.
136.31    Subd. 14. Local government responsibilities. (a) A city, county, or other public
136.32agency may choose to participate voluntarily in a product stewardship program.
136.33(b) Cities, counties, and other public agencies are encouraged to work with producers
136.34and stewardship organizations to assist in meeting product stewardship program recycling
136.35obligations, by providing education and outreach or using other strategies.
137.1(c) A city, county, or other public agency that participates in a product stewardship
137.2program must report for the first year of the program to the agency using the reporting
137.3form provided by the agency on the cost savings as a result of participation and describe
137.4how the savings were used.
137.5    Subd. 15. Administrative fee. (a) The stewardship organization or individual
137.6producer submitting a stewardship plan shall pay an annual administrative fee to the
137.7commissioner. The agency may establish a variable fee based on relevant factors,
137.8including, but not limited to, the portion of primary batteries sold in the state by members
137.9of the organization compared to the total amount of primary batteries sold in the state by
137.10all organizations submitting a stewardship plan.
137.11(b) Prior to July 1, 2015, and before July 1 annually thereafter, the agency shall
137.12identify the costs it incurs under this section. The agency shall set the fee at an amount
137.13that, when paid by every stewardship organization or individual producer that submits a
137.14stewardship plan, is adequate to reimburse the agency's full costs of administering this
137.15section. The total amount of annual fees collected under this subdivision must not exceed
137.16the amount necessary to reimburse costs incurred by the agency to administer this section.
137.17(c) A stewardship organization or individual producer subject to this subdivision
137.18must pay the agency's administrative fee under paragraph (a) on or before July 1, 2015
137.19and annually thereafter.
137.20(d) All fees received under this section shall be deposited to the state treasury and
137.21credited to a product stewardship account in the Special Revenue Fund. Money in the
137.22account is appropriated to the commissioner for the purpose of reimbursing the agency's
137.23costs incurred to administer this section.
137.24    Subd. 16. Exemption; medical device. The requirements of this section do not
137.25apply to a medical device as defined in the Food, Drug, and Cosmetic Act, United States
137.26Code, title 21, section 321, paragraph (h).
137.27    Subd. 17. Private enforcement. (a) The operator of a statewide product stewardship
137.28program established under subdivision 2 that incurs costs exceeding $5,000 to collect,
137.29handle, recycle, or properly dispose of discarded primary batteries sold or offered for sale
137.30in Minnesota by a producer who does not implement its own program or participate in a
137.31program implemented by a stewardship organization, may bring a civil action or actions
137.32to recover costs and fees as specified in paragraph (b) from each nonimplementing or
137.33nonparticipating producer who can reasonably be identified from a brand or marking on a
137.34used consumer battery or from other information.
137.35    (b) An action under paragraph (a) may be brought against one or more primary
137.36battery producers, provided that no such action may be commenced:
138.1    (1) prior to 60 days after written notice of the operator's intention to file suit has been
138.2provided to the agency and the defendant or defendants; or
138.3    (2) if the agency has commenced enforcement actions under subdivision 10 and is
138.4diligently pursuing such actions.
138.5    (c) In any action under paragraph (b), the plaintiff operator may recover from
138.6a defendant nonimplementing or nonparticipating primary battery producer costs the
138.7plaintiff incurred to collect, handle, recycle, or properly dispose of primary batteries
138.8reasonably identified as having originated from the defendant, plus the plaintiff's attorney
138.9fees and litigation costs.

138.10    Sec. 99. [115A.1425] REPORT TO LEGISLATURE AND GOVERNOR.
138.11As part of the report required under section 115A.121, the commissioner of the
138.12Pollution Control Agency shall provide a report to the governor and the legislature on the
138.13implementation of sections 115A.141, 115A.1415, and 115A.142.

138.14    Sec. 100. Minnesota Statutes 2012, section 115B.20, subdivision 6, is amended to read:
138.15    Subd. 6. Report to legislature. Each year By January 31 of each odd-numbered
138.16year, the commissioner of agriculture and the agency shall submit to the senate Finance
138.17Committee, the house of representatives Ways and Means Committee, the Environment
138.18and Natural Resources Committees of the senate and house of representatives, the Finance
138.19Division of the senate Committee on Environment and Natural Resources, and the house
138.20of representatives Committee on Environment and Natural Resources Finance, and the
138.21Environmental Quality Board a report detailing the activities for which money has been
138.22spent pursuant to this section during the previous fiscal year.
138.23EFFECTIVE DATE.This section is effective July 1, 2013.

138.24    Sec. 101. Minnesota Statutes 2012, section 115B.28, subdivision 1, is amended to read:
138.25    Subdivision 1. Duties. In addition to performing duties specified in sections
138.26115B.25 to 115B.37 or in other law, and subject to the limitations on disclosure contained
138.27in section 115B.35, the agency shall:
138.28(1) adopt rules, including rules governing practice and procedure before the agency,
138.29the form and procedure for applications for compensation, and procedures for claims
138.30investigations;
138.31(2) publicize the availability of compensation and application procedures on a
138.32statewide basis with special emphasis on geographical areas surrounding sites identified
139.1by the agency as having releases from a facility where a harmful substance was placed or
139.2came to be located prior to July 1, 1983;
139.3(3) collect, analyze, and make available to the public, in consultation with the
139.4Department of Health, the Pollution Control Agency, the University of Minnesota Medical
139.5and Public Health Schools, and the medical community, data regarding injuries relating to
139.6exposure to harmful substances; and
139.7(4) prepare and transmit by December 31 of each year to the governor and the
139.8legislature an annual legislative report required under section 115B.20, subdivision
139.96, to include (i) a summary of agency activity under clause (3); (ii) data determined
139.10by the agency from actual cases, including but not limited to number of cases, actual
139.11compensation received by each claimant, types of cases, and types of injuries compensated,
139.12as they relate to types of harmful substances as well as length of exposure, but excluding
139.13identification of the claimants; (iii) all administrative costs associated with the business of
139.14the agency; and (iv) agency recommendations for legislative changes, further study, or any
139.15other recommendation aimed at improving the system of compensation.

139.16    Sec. 102. Minnesota Statutes 2012, section 115C.02, subdivision 4, is amended to read:
139.17    Subd. 4. Corrective action. "Corrective action" means an action taken to minimize,
139.18eliminate, or clean up a release to protect the public health and welfare or the environment.
139.19 Corrective action may include environmental covenants pursuant to chapter 114E, an
139.20affidavit required under section 116.48, subdivision 6, or similar notice of a release
139.21recorded with real property records.

139.22    Sec. 103. Minnesota Statutes 2012, section 115C.08, subdivision 4, is amended to read:
139.23    Subd. 4. Expenditures. (a) Money in the fund may only be spent:
139.24(1) to administer the petroleum tank release cleanup program established in this
139.25chapter;
139.26(2) for agency administrative costs under sections 116.46 to 116.50, sections
139.27115C.03 to 115C.06, and costs of corrective action taken by the agency under section
139.28115C.03 , including investigations;
139.29(3) for costs of recovering expenses of corrective actions under section 115C.04;
139.30(4) for training, certification, and rulemaking under sections 116.46 to 116.50;
139.31(5) for agency administrative costs of enforcing rules governing the construction,
139.32installation, operation, and closure of aboveground and underground petroleum storage
139.33tanks;
140.1(6) for reimbursement of the environmental response, compensation, and compliance
140.2account under subdivision 5 and section 115B.26, subdivision 4;
140.3(7) for administrative and staff costs as set by the board to administer the petroleum
140.4tank release program established in this chapter;
140.5(8) for corrective action performance audits under section 115C.093;
140.6(9) for contamination cleanup grants, as provided in paragraph (c);
140.7(10) to assess and remove abandoned underground storage tanks under section
140.8115C.094 and, if a release is discovered, to pay for the specific consultant and contractor
140.9services costs necessary to complete the tank removal project, including, but not limited
140.10to, excavation soil sampling, groundwater sampling, soil disposal, and completion of
140.11an excavation report; and
140.12(11) for property acquisition by the agency when the agency has determined that
140.13purchasing a property where a release has occurred is the most appropriate corrective
140.14action. The to acquire interests in real or personal property, including easements,
140.15environmental covenants under chapter 114E, and leases, that the agency determines are
140.16necessary for corrective actions or to ensure the protectiveness of corrective actions. A
140.17donation of an interest in real property to the agency is not effective until the agency
140.18executes a certificate of acceptance. The state is not liable under this chapter solely as a
140.19result of acquiring an interest in real property under this clause. Agency approval of an
140.20environmental covenant under chapter 114E is sufficient evidence of acceptance of an
140.21interest in real property when the agency is expressly identified as a holder in the covenant.
140.22 Acquisition of all properties real property under this clause, except environmental
140.23covenants under chapter 114E, is subject to approval by the board.
140.24(b) Except as provided in paragraph (c), money in the fund is appropriated to the
140.25board to make reimbursements or payments under this section.
140.26(c) In fiscal years 2010 and 2011, $3,700,000 is annually appropriated from the fund
140.27to the commissioner of employment and economic development for contamination cleanup
140.28grants under section 116J.554. Beginning in fiscal year 2012 and each year thereafter,
140.29$6,200,000 is annually appropriated from the fund to the commissioner of employment
140.30and economic development for contamination cleanup grants under section 116J.554. Of
140.31this amount, the commissioner may spend up to $225,000 annually for administration
140.32of the contamination cleanup grant program. The appropriation does not cancel and is
140.33available until expended. The appropriation shall not be withdrawn from the fund nor the
140.34fund balance reduced until the funds are requested by the commissioner of employment
140.35and economic development. The commissioner shall schedule requests for withdrawals
141.1from the fund to minimize the necessity to impose the fee authorized by subdivision 2.
141.2Unless otherwise provided, the appropriation in this paragraph may be used for:
141.3(1) project costs at a qualifying site if a portion of the cleanup costs are attributable
141.4to petroleum contamination or new and used tar and tar-like substances, including but not
141.5limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist
141.6primarily of hydrocarbons and are found in natural deposits in the earth or are distillates,
141.7fractions, or residues from the processing of petroleum crude or petroleum products as
141.8defined in section 296A.01; and
141.9(2) the costs of performing contamination investigation if there is a reasonable basis
141.10to suspect the contamination is attributable to petroleum or new and used tar and tar-like
141.11substances, including but not limited to bitumen and asphalt, but excluding bituminous or
141.12asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits
141.13in the earth or are distillates, fractions, or residues from the processing of petroleum crude
141.14or petroleum products as defined in section 296A.01.

141.15    Sec. 104. Minnesota Statutes 2012, section 115C.08, is amended by adding a
141.16subdivision to read:
141.17    Subd. 6. Disposition of property acquired for corrective action. (a) If the
141.18commissioner determines that real or personal property acquired by the agency for a
141.19corrective action is no longer needed for corrective action purposes, the commissioner may:
141.20(1) request the commissioner of administration to dispose of the property according
141.21to sections 16B.281 to 16B.287, subject to conditions the commissioner of the Pollution
141.22Control Agency determines necessary to protect the public health and welfare and the
141.23environment or to comply with federal law;
141.24(2) transfer the property to another state agency, a political subdivision, or a special
141.25purpose district as provided in paragraph (b); or
141.26(3) if required by federal law, take actions and dispose of the property according
141.27to federal law.
141.28(b) If the commissioner determines that real or personal property acquired by
141.29the agency for a corrective action must be operated, maintained, or monitored after
141.30completion of other phases of the corrective action, the commissioner may transfer
141.31ownership of the property to another state agency, a political subdivision, or a special
141.32purpose district that agrees to accept the property. A state agency, political subdivision,
141.33or special purpose district may accept and implement terms and conditions of a transfer
141.34under this paragraph. The commissioner may set terms and conditions for the transfer
141.35that the commissioner considers reasonable and necessary to ensure proper operation,
142.1maintenance, and monitoring of corrective actions; protect the public health and welfare
142.2and the environment; and comply with applicable federal and state laws and regulations.
142.3The state agency, political subdivision, or special purpose district to which the property is
142.4transferred is not liable under this chapter solely as a result of acquiring the property or
142.5acting in accordance with the terms and conditions of transfer.
142.6(c) The proceeds of a sale or other transfer of property under this subdivision
142.7by the commissioner or by the commissioner of administration shall be deposited in
142.8the petroleum tank fund or other appropriate fund. Any share of the proceeds that the
142.9agency is required by federal law or regulation to reimburse to the federal government is
142.10appropriated from the fund to the agency for the purpose. Section 16B.287, subdivision 1,
142.11does not apply to real property that is sold by the commissioner of administration and that
142.12was acquired under subdivision 4, clause (11).

142.13    Sec. 105. Minnesota Statutes 2012, section 115D.10, is amended to read:
142.14115D.10 TOXIC POLLUTION PREVENTION EVALUATION REPORT.
142.15The commissioner, in cooperation with the commission, shall report to
142.16the Environment and Natural Resources Committees of the senate and house of
142.17representatives, the Finance Division of the senate Committee on Environment and
142.18Natural Resources, and the house of representatives Committee on Environment and
142.19Natural Resources Finance on progress being made in achieving the objectives of sections
142.20115D.01 to 115D.12. The report must be submitted by February 1 of each even-numbered
142.21year done in conjunction with the report required under section 115A.121.

142.22    Sec. 106. Minnesota Statutes 2012, section 116.48, subdivision 6, is amended to read:
142.23    Subd. 6. Affidavit. (a) Before transferring ownership of property that the owner
142.24knows contains an underground or aboveground storage tank or contained an underground
142.25or aboveground storage tank that had a release for which no corrective action was taken or
142.26if required by the agency as a condition of a corrective action under chapter 115C, the
142.27owner shall record with the county recorder or registrar of titles of the county in which the
142.28property is located an affidavit containing:
142.29(1) a legal description of the property where the tank is located;
142.30(2) a description of the tank, of the location of the tank, and of any known release
142.31from the tank of a regulated substance to the full extent known or reasonably ascertainable;
142.32(3) a description of any restrictions currently in force on the use of the property
142.33resulting from any release; and
142.34(4) the name of the owner.
143.1(b) The county recorder shall record the affidavits in a manner that will insure
143.2their disclosure in the ordinary course of a title search of the subject property. Before
143.3transferring ownership of property that the owner knows contains an underground or
143.4aboveground storage tank, the owner shall deliver to the purchaser a copy of the affidavit
143.5and any additional information necessary to make the facts in the affidavit accurate as of
143.6the date of transfer of ownership.
143.7(c) Failure to record an affidavit as provided in this subdivision does not affect or
143.8prevent any transfer of ownership of the property.

143.9    Sec. 107. Minnesota Statutes 2012, section 116C.03, subdivision 2, is amended to read:
143.10    Subd. 2. Membership. The members of the board are the director of the Office of
143.11Strategic and Long-Range Planning commissioner of administration, the commissioner
143.12of commerce, the commissioner of the Pollution Control Agency, the commissioner
143.13of natural resources, the commissioner of agriculture, the commissioner of health,
143.14the commissioner of employment and economic development, the commissioner of
143.15transportation, the chair of the Board of Water and Soil Resources, and a representative of
143.16the governor's office designated by the governor. The governor shall appoint five members
143.17from the general public to the board, subject to the advice and consent of the senate.
143.18At least two of the five public members must have knowledge of and be conversant in
143.19water management issues in the state. Notwithstanding the provisions of section 15.06,
143.20subdivision 6
, members of the board may not delegate their powers and responsibilities as
143.21board members to any other person.

143.22    Sec. 108. Minnesota Statutes 2012, section 116C.03, subdivision 4, is amended to read:
143.23    Subd. 4. Support. Staff and consultant support for board activities shall be provided
143.24by the Office of Strategic and Long-Range Planning Pollution Control Agency. This
143.25support shall be provided based upon an annual budget and work program developed by
143.26the board and certified to the commissioner by the chair of the board. The board shall
143.27have the authority to request and require staff support from all other agencies of state
143.28government as needed for the execution of the responsibilities of the board.

143.29    Sec. 109. Minnesota Statutes 2012, section 116C.03, subdivision 5, is amended to read:
143.30    Subd. 5. Administration. The board shall contract with the Office of Strategic and
143.31Long-Range Planning Pollution Control Agency for administrative services necessary to
143.32the board's activities. The services shall include personnel, budget, payroll and contract
143.33administration.

144.1    Sec. 110. [116C.99] SILICA SAND MINING MODEL STANDARDS AND
144.2CRITERIA.
144.3    Subdivision 1. Definitions. The definitions in this subdivision apply to this section.
144.4(a) "Local unit of government" means a county, statutory or home rule charter city,
144.5or town.
144.6(b) "Mining" means excavating and mining silica sand by any process, including
144.7digging, excavating, mining, drilling, blasting, tunneling, dredging, stripping, or by shaft.
144.8(c) "Processing" means washing, cleaning, screening, crushing, filtering, sorting,
144.9processing, stockpiling, and storing silica sand, either at the mining site or at any other site.
144.10(d) "Silica sand" means well-rounded, sand-sized grains of quartz (silicon dioxide),
144.11with very little impurities in terms of other minerals. Specifically, the silica sand for the
144.12purposes of this section is commercially valuable for use in the hydraulic fracturing of
144.13shale to obtain oil and natural gas. Silica sand does not include common rock, stone,
144.14aggregate, gravel, sand with a low quartz level, or silica compounds recovered as a
144.15by-product of metallic mining.
144.16(e) "Silica sand project" means the excavation and mining and processing of silica
144.17sand; the washing, cleaning, screening, crushing, filtering, drying, sorting, stockpiling,
144.18and storing of silica sand, either at the mining site or at any other site; the hauling and
144.19transporting of silica sand; or a facility for transporting silica sand to destinations by rail,
144.20barge, truck, or other means of transportation.
144.21(f) "Temporary storage" means the storage of stock piles of silica sand that have
144.22been transported and await further transport.
144.23(g) "Transporting" means hauling and transporting silica sand, by any carrier:
144.24(1) from the mining site to a processing or transfer site; or
144.25(2) from a processing or storage site to a rail, barge, or transfer site for transporting
144.26to destinations.
144.27    Subd. 2. Standards and criteria. (a) By October 1, 2013, the Environmental
144.28Quality Board, in consultation with local units of government, shall develop model
144.29standards and criteria for mining, processing, and transporting silica sand. These standards
144.30and criteria may be used by local units of government in developing local ordinances.
144.31The standards and criteria must include:
144.32(1) recommendations for setbacks or buffers for mining operation and processing,
144.33including:
144.34(i) any residence or residential zoning district boundary;
144.35(ii) any property line or right-of-way line of any existing or proposed street or
144.36highway;
145.1(iii) ordinary high water levels of public waters;
145.2(iv) bluffs;
145.3(v) designated trout streams, Class 2A water as designated in the rules of the
145.4Pollution Control Agency, or any perennially flowing tributary of a designated trout
145.5stream or Class 2A water;
145.6(vi) calcareous fens;
145.7(vii) wellhead protection areas as defined in section 103I.005;
145.8(viii) critical natural habitat acquired by the commissioner of natural resources
145.9under section 84.944; and
145.10(ix) a natural resource easement paid wholly or in part by public funds;
145.11(2) standards for hours of operation;
145.12(3) groundwater and surface water quality and quantity monitoring and mitigation
145.13plan requirements, including:
145.14(i) applicable groundwater and surface water appropriation permit requirements;
145.15(ii) well sealing requirements;
145.16(iii) annual submission of monitoring well data; and
145.17(iv) storm water runoff rate limits not to exceed two-, ten-, and 100-year storm events;
145.18(4) air monitoring and data submission requirements;
145.19(5) dust control requirements;
145.20(6) noise testing and mitigation plan requirements;
145.21(7) blast monitoring plan requirements;
145.22(8) lighting requirements;
145.23(9) inspection requirements;
145.24(10) containment requirements for silica sand in temporary storage to protect air
145.25and water quality;
145.26(11) containment requirements for chemicals used in processing;
145.27(12) financial assurance requirements;
145.28(13) road and bridge impacts and requirements; and
145.29(14) reclamation plan requirements as required under the rules adopted by the
145.30commissioner of natural resources.
145.31    Subd. 3. Silica sand technical assistance team. By October 1, 2013, the
145.32Environmental Quality Board shall assemble a silica sand technical assistance team
145.33to provide local units of government, at their request, with assistance with ordinance
145.34development, zoning, environmental review and permitting, monitoring, or other issues
145.35arising from silica sand mining and processing operations. The technical assistance team
145.36shall be comprised of up to seven members, and shall be chosen from the following
146.1entities: the Department of Natural Resources, the Pollution Control Agency, the Board of
146.2Water and Soil Resources, the Department of Health, the Department of Transportation,
146.3the University of Minnesota, and the Minnesota State Colleges and Universities. A
146.4majority of the members must be from a state agency and have expertise in one or more of
146.5the following areas: silica sand mining, hydrology, air quality, water quality, land use, or
146.6other areas related to silica sand mining.
146.7    Subd. 4. Consideration of technical assistance team recommendations. (a) When
146.8the technical assistance team, at the request of the local unit of government, assembles
146.9findings or makes a recommendation related to a proposed silica sand project for the
146.10protection of human health and the environment, a local government unit must consider
146.11the findings or recommendations of the technical assistance team in its approval or denial
146.12of a silica sand project. If the local government unit does not agree with the technical
146.13assistance team's findings and recommendations, the detailed reasons for the disagreement
146.14must be part of the local government unit's record of decision.
146.15(b) Silica sand project proposers must cooperate in providing local government unit
146.16staff, and members of the technical assistance team with information regarding the project.
146.17EFFECTIVE DATE.This section is effective the day following final enactment.

146.18    Sec. 111. [116C.991] TECHNICAL ASSISTANCE, ORDINANCE, AND PERMIT
146.19LIBRARY.
146.20By October 1, 2013, the Environmental Quality Board, in consultation with local
146.21units of government, shall create and maintain a library on local government ordinances
146.22and local government permits that have been approved for regulation of silica sand
146.23projects for reference by local governments.

146.24    Sec. 112. Minnesota Statutes 2012, section 116D.04, is amended by adding a
146.25subdivision to read:
146.26    Subd. 16. Groundwater; environmental assessment worksheets. When an
146.27environmental assessment worksheet is required for a proposed action that has the
146.28potential to require a groundwater appropriation permit from the commissioner of natural
146.29resources, the board shall require that the environmental assessment worksheet include an
146.30assessment of the water resources available for appropriation.

146.31    Sec. 113. Minnesota Statutes 2012, section 168.1296, subdivision 1, is amended to read:
146.32    Subdivision 1. General requirements and procedures. (a) The commissioner shall
146.33issue critical habitat plates to an applicant who:
147.1(1) is a registered owner of a passenger automobile as defined in section 168.002,
147.2subdivision 24, or recreational vehicle as defined in section 168.002, subdivision 27;
147.3(2) pays a fee of $10 to cover the costs of handling and manufacturing the plates;
147.4(3) pays the registration tax required under section 168.013;
147.5(4) pays the fees required under this chapter;
147.6(5) contributes a minimum of $30 $40 annually to the Minnesota critical habitat
147.7private sector matching account established in section 84.943; and
147.8(6) complies with this chapter and rules governing registration of motor vehicles
147.9and licensing of drivers.
147.10(b) The critical habitat plate application must indicate that the annual contribution
147.11specified under paragraph (a), clause (5), is a minimum contribution to receive the plate
147.12and that the applicant may make an additional contribution to the account.
147.13(c) Owners of recreational vehicles under paragraph (a), clause (1), are eligible
147.14only for special critical habitat license plates for which the designs are selected under
147.15subdivision 2, on or after January 1, 2006.
147.16(d) Special critical habitat license plates, the designs for which are selected under
147.17subdivision 2, on or after January 1, 2006, may be personalized according to section
147.18168.12, subdivision 2a .

147.19    Sec. 114. Minnesota Statutes 2012, section 473.846, is amended to read:
147.20473.846 REPORTS REPORT TO LEGISLATURE.
147.21The agency shall submit to the senate and house of representatives committees
147.22having jurisdiction over environment and natural resources separate reports a report
147.23 describing the activities for which money for landfill abatement has been spent under
147.24sections section 473.844 and 473.845. The report for section 473.844 expenditures shall be
147.25included in the report required by section 115A.411, and shall include recommendations
147.26on the future management and use of the metropolitan landfill abatement account. By
147.27December 31 of each year, the commissioner shall submit the report for section 473.845
147.28 on contingency action trust fund activities.

147.29    Sec. 115. Laws 2012, chapter 249, section 11, is amended to read:
147.30    Sec. 11. COSTS OF SCHOOL TRUST LANDS DIRECTOR AND
147.31LEGISLATIVE PERMANENT SCHOOL FUND COMMISSION.
147.32(a) The costs of the school trust lands director, including the costs of hiring staff,
147.33and the Legislative Permanent School Fund Commission for fiscal years 2014 and 2015
147.34shall be from the state forest development account under Minnesota Statutes, section
148.116A.125, and from the minerals management account under Minnesota Statutes, section
148.293.2236 , as appropriated by the legislature.
148.3(b) The school trust lands director and the Legislative Permanent School Fund
148.4Commission shall submit to the 2014 legislature a proposal to fund the operational costs
148.5of the Legislative Permanent School Fund Commission and school trust lands director
148.6and staff with a cost certification method using revenues generated by the permanent
148.7school fund lands.
148.8EFFECTIVE DATE.This section is effective July 1, 2013.

148.9    Sec. 116. NORTH MISSISSIPPI REGIONAL PARK.
148.10(a) The boundaries of the North Mississippi Regional Park are extended to include
148.11the approximately 20.82 acres of land adjacent to the existing park known as Webber Park
148.12and that part of Shingle Creek that flows through Webber Park and continues through
148.13North Mississippi Regional Park into the Mississippi River.
148.14(b) Funds appropriated for North Mississippi Regional Park may be expended to
148.15provide for visitor amenities, including construction of a natural filtration swimming
148.16pool and a building for park users.
148.17EFFECTIVE DATE.This section is effective the day after the governing body of
148.18the Minneapolis Park and Recreation Board and its chief clerical officer timely complete
148.19their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

148.20    Sec. 117. WASTEWATER TREATMENT SYSTEMS; BENEFICIAL USE.
148.21The Pollution Control Agency shall apply the following criteria to wastewater
148.22treatment system projects:
148.23(1) 30 points shall be assigned if a project will result in an agency approved
148.24beneficial use of treated wastewater to reduce or replace an existing or proposed use of
148.25surface water or ground water, not including land discharge; and
148.26(2) 30 points shall be assigned if a project will result in the beneficial use of treated
148.27wastewater to reduce or replace an existing or proposed use of surface water or ground
148.28water, not including land discharge.
148.29EFFECTIVE DATE.This section is effective July 1, 2014.

148.30    Sec. 118. PERMIT CANCELLATION.
148.31Upon written request submitted by a permit holder to the commissioner of natural
148.32resources on or before June 1, 2015, the commissioner shall cancel any provision in a
149.1timber sale permit sold prior to September 1, 2012, that requires the security payment for
149.2or removal of all or part of the balsam fir when the permit contains at least 50 cords of
149.3balsam fir. The remaining provisions of the permit remain in effect. The permit holder
149.4may be required to fell or pile the balsam fir to meet management objectives.

149.5    Sec. 119. RULEMAKING; POSSESSION AND TRANSPORTATION OF
149.6WILDLIFE.
149.7The commissioner of natural resources may use the good cause exemption under
149.8Minnesota Statutes, section 14.388, subdivision 1, clause (3), to adopt rules to conform
149.9with the changes to Minnesota Statutes 2012, section 97A.401, subdivision 3 contained in
149.10this article, and Minnesota Statutes, section 14.386, does not apply except as provided
149.11under Minnesota Statutes, section 14.388.

149.12    Sec. 120. RULEMAKING; DISPLAY OF PADDLE BOARD LICENSE
149.13NUMBERS.
149.14(a) The commissioner of natural resources shall amend Minnesota Rules, parts
149.156110.0200, 6110.0300, and 6110.0400, to exempt paddle boards from the requirement to
149.16display license certificates and license numbers, in the same manner as other nonmotorized
149.17watercraft such as canoes and kayaks.
149.18(b) The commissioner may use the good cause exemption under Minnesota Statutes,
149.19section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
149.20Statutes, section 14.386, does not apply except as provided under Minnesota Statutes,
149.21section 14.388.

149.22    Sec. 121. RULEMAKING; INDUSTRIAL MINERALS AND NONFERROUS
149.23MINERAL LEASES.
149.24The commissioner of natural resources may use the good cause exemption under
149.25Minnesota Statutes, section 14.388, subdivision 1, clause (3), to amend Minnesota Rules,
149.26parts 6125.0100 to 6125.0700 and 6125.8000 to 6125.8700, to conform with the changes
149.27to Minnesota Statutes, section 93.25, subdivision 2 contained in this article. Minnesota
149.28Statutes, section 14.386, does not apply except as provided under Minnesota Statutes,
149.29section 14.388.

149.30    Sec. 122. RULEMAKING; PERMIT TO MINE.
149.31The commissioner of natural resources may use the good cause exemption under
149.32Minnesota Statutes, section 14.388, subdivision 1, clause (3), to amend Minnesota Rules,
150.1chapter 6130, to conform with the changes to Minnesota Statutes, section 93.46 contained
150.2in this article. Minnesota Statutes, section 14.386, does not apply except as provided
150.3under Minnesota Statutes, section 14.388.

150.4    Sec. 123. RULEMAKING; SILICA SAND.
150.5(a) The commissioner of the Pollution Control Agency shall adopt rules pertaining
150.6to the control of particulate emissions from silica sand mines. The commissioner shall
150.7consider and incorporate, as appropriate to the conditions of this state, Wisconsin
150.8Administrative Code NR 415, in effect as of January 1, 2012, pertaining to industrial
150.9sand mines.
150.10(b) The commissioner of natural resources shall adopt rules pertaining to the
150.11reclamation of silica sand mines. The commissioner shall consider and incorporate, as
150.12appropriate to the conditions of this state, Wisconsin Administrative Code NR 135, in
150.13effect as of January 1, 2012, pertaining to reclamation of industrial sand mines.
150.14(c) By January 1, 2014, the Department of Health shall adopt an air quality health
150.15advisory for silica sand.

150.16    Sec. 124. RULEMAKING; FUGITIVE EMISSIONS.
150.17(a) The commissioner of the Pollution Control Agency shall amend Minnesota
150.18Rules, part 7005.0100, subpart 35a, to read:
150.19""Potential emissions" or "potential to emit" means the maximum capacity while
150.20operating at the maximum hours of operation of an emissions unit, emission facility, or
150.21stationary source to emit a pollutant under its physical and operational design. Any physical
150.22or operational limitation on the capacity of the stationary source to emit a pollutant,
150.23including air pollution control equipment and restriction on hours of operation or on the
150.24type or amount of material combusted, stored, or processed, must be treated as part of its
150.25design if the limitation or the effect it would have on emissions is federally enforceable.
150.26Secondary emissions must not be counted in determining the potential to emit of
150.27an emissions unit, emission facility, or stationary source. Fugitive emissions shall not be
150.28counted when determining potential to emit, unless required under Minnesota Rules, part
150.297007.0200, subpart 2, item B, or applicable federal regulation."
150.30(b) The commissioner may use the good cause exemption under Minnesota Statutes,
150.31section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
150.32Statutes, section 14.386, does not apply, except as provided under Minnesota Statutes,
150.33section 14.388.

151.1    Sec. 125. REPEALER.
151.2Minnesota Statutes 2012, sections 90.163; 90.173; 90.41, subdivision 2; and
151.3103G.265, subdivision 2a, and Minnesota Rules, parts 7021.0010, subparts 1, 2, 4, and
151.45; 7021.0020; 7021.0030; 7021.0040; 7021.0050, subpart 5; 9210.0300; 9210.0310;
151.59210.0320; 9210.0330; 9210.0340; 9210.0350; 9210.0360; 9210.0370; 9210.0380; and
151.69220.0530, subpart 6, are repealed.

151.7ARTICLE 5
151.8SANITARY DISTRICTS

151.9    Section 1. Minnesota Statutes 2012, section 275.066, is amended to read:
151.10275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
151.11    For the purposes of property taxation and property tax state aids, the term "special
151.12taxing districts" includes the following entities:
151.13    (1) watershed districts under chapter 103D;
151.14    (2) sanitary districts under sections 115.18 to 115.37 442A.01 to 442A.29;
151.15    (3) regional sanitary sewer districts under sections 115.61 to 115.67;
151.16    (4) regional public library districts under section 134.201;
151.17    (5) park districts under chapter 398;
151.18    (6) regional railroad authorities under chapter 398A;
151.19    (7) hospital districts under sections 447.31 to 447.38;
151.20    (8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
151.21    (9) Duluth Transit Authority under sections 458A.21 to 458A.37;
151.22    (10) regional development commissions under sections 462.381 to 462.398;
151.23    (11) housing and redevelopment authorities under sections 469.001 to 469.047;
151.24    (12) port authorities under sections 469.048 to 469.068;
151.25    (13) economic development authorities under sections 469.090 to 469.1081;
151.26    (14) Metropolitan Council under sections 473.123 to 473.549;
151.27    (15) Metropolitan Airports Commission under sections 473.601 to 473.680;
151.28    (16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
151.29    (17) Morrison County Rural Development Financing Authority under Laws 1982,
151.30chapter 437, section 1;
151.31    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
151.32    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211,
151.33sections 1 to 6;
152.1    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article
152.25, section 39;
152.3    (21) Middle Mississippi River Watershed Management Organization under sections
152.4103B.211 and 103B.241;
152.5    (22) emergency medical services special taxing districts under section 144F.01;
152.6    (23) a county levying under the authority of section 103B.241, 103B.245, or
152.7103B.251 ;
152.8    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
152.9under Laws 2003, First Special Session chapter 21, article 4, section 12;
152.10    (25) an airport authority created under section 360.0426; and
152.11    (26) any other political subdivision of the state of Minnesota, excluding counties,
152.12school districts, cities, and towns, that has the power to adopt and certify a property tax
152.13levy to the county auditor, as determined by the commissioner of revenue.

152.14    Sec. 2. [442A.01] DEFINITIONS.
152.15    Subdivision 1. Applicability. For the purposes of this chapter, the terms defined
152.16in this section have the meanings given.
152.17    Subd. 2. Chief administrative law judge. "Chief administrative law judge" means
152.18the chief administrative law judge of the Office of Administrative Hearings or the delegate
152.19of the chief administrative law judge under section 14.48.
152.20    Subd. 3. District. "District" means a sanitary district created under this chapter or
152.21under Minnesota Statutes 2012, sections 115.18 to 115.37.
152.22    Subd. 4. Municipality. "Municipality" means a city, however organized.
152.23    Subd. 5. Property owner. "Property owner" means the fee owner of land, or the
152.24beneficial owner of land whose interest is primarily one of possession and enjoyment.
152.25Property owner includes, but is not limited to, vendees under a contract for deed and
152.26mortgagors. Any reference to a percentage of property owners means in number.
152.27    Subd. 6. Related governing body. "Related governing body" means the governing
152.28body of a related governmental subdivision and, in the case of an organized town, means
152.29the town board.
152.30    Subd. 7. Related governmental subdivision. "Related governmental subdivision"
152.31means a municipality or organized town wherein there is a territorial unit of a district or, in
152.32the case of an unorganized area, the county.
152.33    Subd. 8. Territorial unit. "Territorial unit" means all that part of a district situated
152.34within a single municipality, within a single organized town outside of a municipality, or,
152.35in the case of an unorganized area, within a single county.

153.1    Sec. 3. [442A.015] APPLICABILITY.
153.2All new sanitary district formations proposed and all sanitary districts previously
153.3formed under Minnesota Statutes 2012, sections 115.18 to 115.37, must comply with this
153.4chapter, including annexations to, detachments from, and resolutions of sanitary districts
153.5previously formed under Minnesota Statutes 2012, sections 115.18 to 115.37.

153.6    Sec. 4. [442A.02] SANITARY DISTRICTS; PROCEDURES AND AUTHORITY.
153.7    Subdivision 1. Duty of chief administrative law judge. The chief administrative
153.8law judge shall conduct proceedings, make determinations, and issue orders for the
153.9creation of a sanitary district formed under this chapter or the annexation, detachment,
153.10or dissolution of a sanitary district previously formed under Minnesota Statutes 2012,
153.11sections 115.18 to 115.37.
153.12    Subd. 2. Consolidation of proceedings. The chief administrative law judge may
153.13order the consolidation of separate proceedings in the interest of economy and expedience.
153.14    Subd. 3. Contracts, consultants. The chief administrative law judge may contract
153.15with regional, state, county, or local planning commissions and hire expert consultants to
153.16provide specialized information and assistance.
153.17    Subd. 4. Powers of conductor of proceedings. Any person conducting a
153.18proceeding under this chapter may administer oaths and affirmations; receive testimony
153.19of witnesses, and the production of papers, books, and documents; examine witnesses;
153.20and receive and report evidence. Upon the written request of a presiding administrative
153.21law judge or a party, the chief administrative law judge may issue a subpoena for the
153.22attendance of a witness or the production of books, papers, records, or other documents
153.23material to any proceeding under this chapter. The subpoena is enforceable through the
153.24district court in the district in which the subpoena is issued.
153.25    Subd. 5. Rulemaking authority. The chief administrative law judge may adopt
153.26rules that are reasonably necessary to carry out the duties and powers imposed upon the
153.27chief administrative law judge under this chapter. The chief administrative law judge may
153.28initially adopt rules according to section 14.386. Notwithstanding section 16A.1283, the
153.29chief administrative law judge may adopt rules establishing fees.
153.30    Subd. 6. Schedule of filing fees. The chief administrative law judge may prescribe
153.31by rule a schedule of filing fees for any petitions filed under this chapter.
153.32    Subd. 7. Request for hearing transcripts; costs. Any party may request the chief
153.33administrative law judge to cause a transcript of the hearing to be made. Any party
153.34requesting a copy of the transcript is responsible for its costs.
154.1    Subd. 8. Compelled meetings; report. (a) In any proceeding under this chapter,
154.2the chief administrative law judge or conductor of the proceeding may at any time in the
154.3process require representatives from any petitioner, property owner, or involved city, town,
154.4county, political subdivision, or other governmental entity to meet together to discuss
154.5resolution of issues raised by the petition or order that confers jurisdiction on the chief
154.6administrative law judge and other issues of mutual concern. The chief administrative
154.7law judge or conductor of the proceeding may determine which entities are required
154.8to participate in these discussions. The chief administrative law judge or conductor of
154.9the proceeding may require that the parties meet at least three times during a 60-day
154.10period. The parties shall designate a person to report to the chief administrative law
154.11judge or conductor of the proceeding on the results of the meetings immediately after the
154.12last meeting. The parties may be granted additional time at the discretion of the chief
154.13administrative law judge or conductor of the proceedings.
154.14(b) Any proposed resolution or settlement of contested issues that results in a
154.15sanitary district formation, annexation, detachment, or dissolution; places conditions on
154.16any future sanitary district formation, annexation, detachment, or dissolution; or results in
154.17the withdrawal of an objection to a pending proceeding or the withdrawal of a pending
154.18proceeding must be filed with the chief administrative law judge and is subject to the
154.19applicable procedures and statutory criteria of this chapter.
154.20    Subd. 9. Permanent official record. The chief administrative law judge shall
154.21provide information about sanitary district creations, annexations, detachments, and
154.22dissolutions to the Minnesota Pollution Control Agency. The Minnesota Pollution Control
154.23Agency is responsible for maintaining the official record, including all documentation
154.24related to the processes.
154.25    Subd. 10. Shared program costs and fee revenue. The chief administrative
154.26law judge and the Minnesota Pollution Control Agency shall agree on an amount to be
154.27transferred from the Minnesota Pollution Control Agency to the chief administrative law
154.28judge to pay for administration of this chapter, including publication and notification costs.
154.29Sanitary district fees collected by the chief administrative law judge shall be deposited in
154.30the environmental fund.
154.31EFFECTIVE DATE.Subdivision 5 is effective the day following final enactment.

154.32    Sec. 5. [442A.03] FILING OF MAPS IN SANITARY DISTRICT PROCEEDINGS.
154.33Any party initiating a sanitary district proceeding that includes platted land shall file
154.34with the chief administrative law judge maps which are necessary to support and identify
154.35the land description. The maps shall include copies of plats.

155.1    Sec. 6. [442A.04] SANITARY DISTRICT CREATION.
155.2    Subdivision 1. Sanitary district creation. (a) A sanitary district may be created
155.3under this chapter for any territory embracing an area or a group of two or more adjacent
155.4areas, whether contiguous or separate, but not situated entirely within the limits of a
155.5single municipality. The proposed sanitary district must promote the public health and
155.6welfare by providing an adequate and efficient system and means of collecting, conveying,
155.7pumping, treating, and disposing of domestic sewage and garbage and industrial wastes
155.8within the district. When the chief administrative law judge or the Minnesota Pollution
155.9Control Agency finds that there is need throughout the territory for the accomplishment
155.10of these purposes; that these purposes can be effectively accomplished on an equitable
155.11basis by a district if created; and that the creation and maintenance of a district will be
155.12administratively feasible and in furtherance of the public health, safety, and welfare, the
155.13chief administrative law judge shall make an order creating the sanitary district. A sanitary
155.14district is administratively feasible under this section if the district has the financial and
155.15managerial resources needed to deliver adequate and efficient sanitary sewer services
155.16within the proposed district.
155.17(b) Notwithstanding paragraph (a), no district shall be created within 25 miles of the
155.18boundary of any city of the first class without the approval of the governing body thereof
155.19and the approval of the governing body of each and every municipality in the proposed
155.20district by resolution filed with the chief administrative law judge.
155.21(c) If the chief administrative law judge and the Minnesota Pollution Control Agency
155.22disagree on the need to create a sanitary district, they must determine whether not allowing
155.23the sanitary district formation will have a detrimental effect on the environment. If it is
155.24determined that the sanitary district formation will prevent environmental harm, the sanitary
155.25district creation or connection to an existing wastewater treatment system must occur.
155.26    Subd. 2. Proceeding to create sanitary district. (a) A proceeding for the creation
155.27of a district may be initiated by a petition to the chief administrative law judge containing
155.28the following:
155.29(1) a request for creation of the proposed district;
155.30(2) the name proposed for the district, to include the words "sanitary district";
155.31(3) a legal description of the territory of the proposed district, including justification
155.32for inclusion or exclusion for all parcels;
155.33(4) addresses of every property owner within the proposed district boundaries as
155.34provided by the county auditor, with certification from the county auditor; two sets of
155.35address labels for said owners; and a list of e-mail addresses for said owners, if available;
156.1(5) a statement showing the existence in the territory of the conditions requisite for
156.2creation of a district as prescribed in subdivision 1;
156.3(6) a statement of the territorial units represented by and the qualifications of the
156.4respective signers; and
156.5(7) the post office address of each signer, given under the signer's signature.
156.6A petition may consist of separate writings of like effect, each signed by one or more
156.7qualified persons, and all such writings, when filed, shall be considered together as a
156.8single petition.
156.9(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
156.10proposed creation of the district. At the meeting, information must be provided, including
156.11a description of the district's proposed structure, bylaws, territory, ordinances, budget, and
156.12charges and a description of the territory of the proposed district, including justification
156.13for inclusion or exclusion for all parcels. Notice of the meeting must be published for two
156.14successive weeks in a qualified newspaper, as defined under chapter 331A, published
156.15within the territory of the proposed district or, if there is no qualified newspaper published
156.16within the territory, in a qualified newspaper of general circulation in the territory, and
156.17must be posted for two weeks in each territorial unit of the proposed district and on the
156.18Web site of the proposed district, if one exists. Notice of the meeting must be mailed or
156.19e-mailed at least three weeks prior to the meeting to all property tax billing addresses for
156.20all parcels included in the proposed district. The following must be submitted to the chief
156.21administrative law judge with the petition:
156.22(1) a record of the meeting, including copies of all information provided at the
156.23meeting;
156.24(2) a copy of the mailing list provided by the county auditor and used to notify
156.25property owners of the meeting;
156.26(3) a copy of the e-mail list used to notify property owners of the meeting;
156.27(4) the printer's affidavit of publication of public meeting notice;
156.28(5) an affidavit of posting the public meeting notice with information on dates and
156.29locations of posting; and
156.30(6) the minutes or other record of the public meeting documenting that the following
156.31topics were discussed: printer's affidavit of publication of each resolution, with a copy
156.32of the resolution from the newspaper attached; and the affidavit of resolution posting
156.33on the town or proposed district Web site.
156.34(c) Every petition must be signed as follows:
156.35(1) for each municipality wherein there is a territorial unit of the proposed district,
156.36by an authorized officer pursuant to a resolution of the municipal governing body;
157.1(2) for each organized town wherein there is a territorial unit of the proposed district,
157.2by an authorized officer pursuant to a resolution of the town board;
157.3(3) for each county wherein there is a territorial unit of the proposed district consisting
157.4of an unorganized area, by an authorized officer pursuant to a resolution of the county
157.5board or by at least 20 percent of the voters residing and owning land within the unit.
157.6(d) Each resolution must be published in the official newspaper of the governing
157.7body adopting it and becomes effective 40 days after publication, unless within said
157.8period there shall be filed with the governing body a petition signed by qualified electors
157.9of a territorial unit of the proposed district, equal in number to five percent of the number
157.10of electors voting at the last preceding election of the governing body, requesting a
157.11referendum on the resolution, in which case the resolution may not become effective until
157.12approved by a majority of the qualified electors voting at a regular election or special
157.13election that the governing body may call. The notice of an election and the ballot to be
157.14used must contain the text of the resolution followed by the question: "Shall the above
157.15resolution be approved?"
157.16(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
157.17the signer's landowner status as shown by the county auditor's tax assessment records,
157.18certified by the auditor, shall be attached to or endorsed upon the petition.
157.19(f) At any time before publication of the public notice required in subdivision 3,
157.20additional signatures may be added to the petition or amendments of the petition may
157.21be made to correct or remedy any error or defect in signature or otherwise except a
157.22material error or defect in the description of the territory of the proposed district. If the
157.23qualifications of any signer of a petition are challenged, the chief administrative law judge
157.24shall determine the challenge forthwith on the allegations of the petition, the county
157.25auditor's certificate of land ownership, and such other evidence as may be received.
157.26    Subd. 3. Notice of intent to create sanitary district. (a) Upon receipt of a petition
157.27and the record of the public meeting required under subdivision 2, the chief administrative
157.28law judge shall publish a notice of intent to create the proposed sanitary district in the State
157.29Register and mail or e-mail information of that publication to each property owner in the
157.30affected territory at the owner's address as given by the county auditor. The information
157.31must state the date that the notice will appear in the State Register and give the Web site
157.32location for the State Register. The notice must:
157.33(1) describe the petition for creation of the district;
157.34(2) describe the territory affected by the petition;
157.35(3) allow 30 days for submission of written comments on the petition;
158.1(4) state that a person who objects to the petition may submit a written request for
158.2hearing to the chief administrative law judge within 30 days of the publication of the
158.3notice in the State Register; and
158.4(5) state that if a timely request for hearing is not received, the chief administrative
158.5law judge may make a decision on the petition.
158.6(b) If 50 or more individual timely requests for hearing are received, the chief
158.7administrative law judge must hold a hearing on the petition according to the contested
158.8case provisions of chapter 14. The sanitary district proposers are responsible for paying all
158.9costs involved in publicizing and holding a hearing on the petition.
158.10    Subd. 4. Hearing time, place. If a hearing is required pursuant to subdivision 3, the
158.11chief administrative law judge shall designate a time and place for a hearing according
158.12to section 442A.13.
158.13    Subd. 5. Relevant factors. (a) In arriving at a decision, the chief administrative law
158.14judge shall consider the following factors:
158.15(1) administrative feasibility under subdivision 1, paragraph (a);
158.16(2) public health, safety, and welfare impacts;
158.17(3) alternatives for managing the public health impacts;
158.18(4) equities of the petition proposal;
158.19(5) contours of the petition proposal; and
158.20(6) public notification of and interaction on the petition proposal.
158.21(b) Based on the factors in paragraph (a), the chief administrative law judge may
158.22order the sanitary district creation on finding that:
158.23(1) the proposed district is administratively feasible;
158.24(2) the proposed district provides a long-term, equitable solution to pollution
158.25problems affecting public health, safety, and welfare;
158.26(3) property owners within the proposed district were provided notice of the
158.27proposed district and opportunity to comment on the petition proposal; and
158.28(4) the petition complied with the requirements of all applicable statutes and rules
158.29pertaining to sanitary district creation.
158.30(c) The chief administrative law judge may alter the boundaries of the proposed
158.31sanitary district by increasing or decreasing the area to be included or may exclude
158.32property that may be better served by another unit of government. The chief administrative
158.33law judge may also alter the boundaries of the proposed district so as to follow visible,
158.34clearly recognizable physical features for municipal boundaries.
158.35(d) The chief administrative law judge may deny sanitary district creation if the area,
158.36or a part thereof, would be better served by an alternative method.
159.1(e) In all cases, the chief administrative law judge shall set forth the factors that are
159.2the basis for the decision.
159.3    Subd. 6. Findings; order. After the public notice period or the public hearing, if
159.4required under subdivision 3, and based on the petition, any public comments received,
159.5and, if a hearing was held, the hearing record, the chief administrative law judge shall
159.6make findings of fact and conclusions determining whether the conditions requisite for the
159.7creation of a district exist in the territory described in the petition. If the chief administrative
159.8law judge finds that the conditions exist, the judge may make an order creating a district
159.9for the territory described in that petition under the name proposed in the petition or such
159.10other name, including the words "sanitary district," as the judge deems appropriate.
159.11    Subd. 7. Denial of petition. If the chief administrative law judge, after conclusion
159.12of the public notice period or holding a hearing, if required, determines that the creation of
159.13a district in the territory described in the petition is not warranted, the judge shall make
159.14an order denying the petition. The chief administrative law judge shall give notice of the
159.15denial by mail or e-mail to each signer of the petition. No petition for the creation of a
159.16district consisting of the same territory shall be entertained within a year after the date of
159.17an order under this subdivision. Nothing in this subdivision precludes action on a petition
159.18for the creation of a district embracing part of the territory with or without other territory.
159.19    Subd. 8. Notice of order creating sanitary district. The chief administrative law
159.20judge shall publish a notice in the State Register of the final order creating a sanitary
159.21district, referring to the date of the order and describing the territory of the district, and
159.22shall mail or e-mail information of the publication to each property owner in the affected
159.23territory at the owner's address as given by the county auditor. The information must state
159.24the date that the notice will appear in the State Register and give the Web site location
159.25for the State Register. The notice must:
159.26(1) describe the petition for creation of the district;
159.27(2) describe the territory affected by the petition; and
159.28(3) state that a certified copy of the order shall be delivered to the secretary of state
159.29for filing ten days after public notice of the order in the State Register.
159.30    Subd. 9. Filing. Ten days after public notice of the order in the State Register, the
159.31chief administrative law judge shall deliver a certified copy of the order to the secretary
159.32of state for filing. Thereupon, the creation of the district is deemed complete, and it
159.33shall be conclusively presumed that all requirements of law relating thereto have been
159.34complied with. The chief administrative law judge shall also transmit a certified copy of
159.35the order for filing to the county auditor of each county and the clerk or recorder of each
160.1municipality and organized town wherein any part of the territory of the district is situated
160.2and to the secretary of the district board when elected.

160.3    Sec. 7. [442A.05] SANITARY DISTRICT ANNEXATION.
160.4    Subdivision 1. Annexation. (a) A sanitary district annexation may occur under
160.5this chapter for any area adjacent to an existing district upon a petition to the chief
160.6administrative law judge stating the grounds therefor as provided in this section.
160.7(b) The proposed annexation area must embrace an area or a group of two or more
160.8adjacent areas, whether contiguous or separate, but not situated entirely within the limits
160.9of a single municipality. The proposed annexation must promote public health and
160.10welfare by providing an adequate and efficient system and means of collecting, conveying,
160.11pumping, treating, and disposing of domestic sewage and garbage and industrial wastes
160.12within the district. When the chief administrative law judge or the Minnesota Pollution
160.13Control Agency finds that there is need throughout the territory for the accomplishment of
160.14these purposes, that these purposes can be effectively accomplished on an equitable basis
160.15by annexation to a district, and that the creation and maintenance of such annexation will
160.16be administratively feasible and in furtherance of the public health, safety, and welfare,
160.17the chief administrative law judge shall make an order for sanitary district annexation.
160.18A sanitary district is administratively feasible under this section if the district has the
160.19financial and managerial resources needed to deliver adequate and efficient sanitary sewer
160.20services within the proposed district.
160.21(c) Notwithstanding paragraph (b), no annexation to a district shall be approved
160.22within 25 miles of the boundary of any city of the first class without the approval
160.23of the governing body thereof and the approval of the governing body of each and
160.24every municipality in the proposed annexation area by resolution filed with the chief
160.25administrative law judge.
160.26(d) If the chief administrative law judge and the Minnesota Pollution Control Agency
160.27disagree on the need for a sanitary district annexation, they must determine whether not
160.28allowing the sanitary district annexation will have a detrimental effect on the environment.
160.29If it is determined that the sanitary district annexation will prevent environmental harm,
160.30the sanitary district annexation or connection to an existing wastewater treatment system
160.31must occur.
160.32    Subd. 2. Proceeding for annexation. (a) A proceeding for sanitary district
160.33annexation may be initiated by a petition to the chief administrative law judge containing
160.34the following:
160.35(1) a request for proposed annexation to a sanitary district;
161.1(2) a legal description of the territory of the proposed annexation, including
161.2justification for inclusion or exclusion for all parcels;
161.3(3) addresses of every property owner within the existing sanitary district and
161.4proposed annexation area boundaries as provided by the county auditor, with certification
161.5from the county auditor; two sets of address labels for said owners; and a list of e-mail
161.6addresses for said owners, if available;
161.7(4) a statement showing the existence in such territory of the conditions requisite
161.8for annexation to a district as prescribed in subdivision 1;
161.9(5) a statement of the territorial units represented by and qualifications of the
161.10respective signers; and
161.11(6) the post office address of each signer, given under the signer's signature.
161.12A petition may consist of separate writings of like effect, each signed by one or more
161.13qualified persons, and all such writings, when filed, shall be considered together as a
161.14single petition.
161.15(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
161.16proposed annexation to a sanitary district. At the meeting, information must be provided,
161.17including a description of the existing sanitary district's structure, bylaws, territory,
161.18ordinances, budget, and charges; a description of the existing sanitary district's territory;
161.19and a description of the territory of the proposed annexation area, including justification
161.20for inclusion or exclusion for all parcels for the annexation area. Notice of the meeting
161.21must be published for two successive weeks in a qualified newspaper, as defined under
161.22chapter 331A, published within the territories of the existing sanitary district and proposed
161.23annexation area or, if there is no qualified newspaper published within those territories, in
161.24a qualified newspaper of general circulation in the territories, and must be posted for two
161.25weeks in each territorial unit of the existing sanitary district and proposed annexation area
161.26and on the Web site of the existing sanitary district, if one exists. Notice of the meeting
161.27must be mailed or e-mailed at least three weeks prior to the meeting to all property tax
161.28billing addresses for all parcels included in the existing sanitary district and proposed
161.29annexation area. The following must be submitted to the chief administrative law judge
161.30with the petition:
161.31(1) a record of the meeting, including copies of all information provided at the
161.32meeting;
161.33(2) a copy of the mailing list provided by the county auditor and used to notify
161.34property owners of the meeting;
161.35(3) a copy of the e-mail list used to notify property owners of the meeting;
161.36(4) the printer's affidavit of publication of the public meeting notice;
162.1(5) an affidavit of posting the public meeting notice with information on dates and
162.2locations of posting; and
162.3(6) the minutes or other record of the public meeting documenting that the following
162.4topics were discussed: printer's affidavit of publication of each resolution, with copy
162.5of resolution from newspaper attached; and affidavit of resolution posting on town or
162.6existing sanitary district Web site.
162.7(c) Every petition must be signed as follows:
162.8(1) by an authorized officer of the existing sanitary district pursuant to a resolution
162.9of the board;
162.10(2) for each municipality wherein there is a territorial unit of the proposed annexation
162.11area, by an authorized officer pursuant to a resolution of the municipal governing body;
162.12(3) for each organized town wherein there is a territorial unit of the proposed
162.13annexation area, by an authorized officer pursuant to a resolution of the town board; and
162.14(4) for each county wherein there is a territorial unit of the proposed annexation area
162.15consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
162.16county board or by at least 20 percent of the voters residing and owning land within the unit.
162.17(d) Each resolution must be published in the official newspaper of the governing
162.18body adopting it and becomes effective 40 days after publication, unless within said
162.19period there shall be filed with the governing body a petition signed by qualified electors
162.20of a territorial unit of the proposed annexation area, equal in number to five percent of the
162.21number of electors voting at the last preceding election of the governing body, requesting
162.22a referendum on the resolution, in which case the resolution may not become effective
162.23until approved by a majority of the qualified electors voting at a regular election or special
162.24election that the governing body may call. The notice of an election and the ballot to be
162.25used must contain the text of the resolution followed by the question: "Shall the above
162.26resolution be approved?"
162.27(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
162.28the signer's landowner status as shown by the county auditor's tax assessment records,
162.29certified by the auditor, shall be attached to or endorsed upon the petition.
162.30(f) At any time before publication of the public notice required in subdivision 4,
162.31additional signatures may be added to the petition or amendments of the petition may be
162.32made to correct or remedy any error or defect in signature or otherwise except a material
162.33error or defect in the description of the territory of the proposed annexation area. If the
162.34qualifications of any signer of a petition are challenged, the chief administrative law judge
162.35shall determine the challenge forthwith on the allegations of the petition, the county
162.36auditor's certificate of land ownership, and such other evidence as may be received.
163.1    Subd. 3. Joint petition. Different areas may be annexed to a district in a single
163.2proceeding upon a joint petition therefor and upon compliance with the provisions of
163.3subdivisions 1 and 2 with respect to the area affected so far as applicable.
163.4    Subd. 4. Notice of intent for sanitary district annexation. (a) Upon receipt
163.5of a petition and the record of public meeting required under subdivision 2, the chief
163.6administrative law judge shall publish a notice of intent for sanitary district annexation
163.7in the State Register and mail or e-mail information of the publication to each property
163.8owner in the affected territory at the owner's address as given by the county auditor. The
163.9information must state the date that the notice will appear in the State Register and give
163.10the Web site location for the State Register. The notice must:
163.11(1) describe the petition for sanitary district annexation;
163.12(2) describe the territory affected by the petition;
163.13(3) allow 30 days for submission of written comments on the petition;
163.14(4) state that a person who objects to the petition may submit a written request for
163.15hearing to the chief administrative law judge within 30 days of the publication of the
163.16notice in the State Register; and
163.17(5) state that if a timely request for hearing is not received, the chief administrative
163.18law judge may make a decision on the petition.
163.19(b) If 50 or more individual timely requests for hearing are received, the chief
163.20administrative law judge must hold a hearing on the petition according to the contested case
163.21provisions of chapter 14. The sanitary district or annexation area proposers are responsible
163.22for paying all costs involved in publicizing and holding a hearing on the petition.
163.23    Subd. 5. Hearing time, place. If a hearing is required under subdivision 4, the
163.24chief administrative law judge shall designate a time and place for a hearing according
163.25to section 442A.13.
163.26    Subd. 6. Relevant factors. (a) In arriving at a decision, the chief administrative law
163.27judge shall consider the following factors:
163.28(1) administrative feasibility under subdivision 1, paragraph (b);
163.29(2) public health, safety, and welfare impacts;
163.30(3) alternatives for managing the public health impacts;
163.31(4) equities of the petition proposal;
163.32(5) contours of the petition proposal; and
163.33(6) public notification of and interaction on the petition proposal.
163.34(b) Based upon these factors, the chief administrative law judge may order the
163.35annexation to the sanitary district on finding that:
164.1(1) the sanitary district is knowledgeable and experienced in delivering sanitary sewer
164.2services to ratepayers and has provided quality service in a fair and cost-effective manner;
164.3(2) the proposed annexation provides a long-term, equitable solution to pollution
164.4problems affecting public health, safety, and welfare;
164.5(3) property owners within the existing sanitary district and proposed annexation
164.6area were provided notice of the proposed district and opportunity to comment on the
164.7petition proposal; and
164.8(4) the petition complied with the requirements of all applicable statutes and rules
164.9pertaining to sanitary district annexation.
164.10(c) The chief administrative law judge may alter the boundaries of the proposed
164.11annexation area by increasing or decreasing the area to be included or may exclude
164.12property that may be better served by another unit of government. The chief administrative
164.13law judge may also alter the boundaries of the proposed annexation area so as to follow
164.14visible, clearly recognizable physical features for municipal boundaries.
164.15(d) The chief administrative law judge may deny sanitary district annexation if the
164.16area, or a part thereof, would be better served by an alternative method.
164.17(e) In all cases, the chief administrative law judge shall set forth the factors that are
164.18the basis for the decision.
164.19    Subd. 7. Findings; order. (a) After the public notice period or the public hearing, if
164.20required under subdivision 4, and based on the petition, any public comments received,
164.21and, if a hearing was held, the hearing record, the chief administrative law judge shall
164.22make findings of fact and conclusions determining whether the conditions requisite for
164.23the sanitary district annexation exist in the territory described in the petition. If the chief
164.24administrative law judge finds that conditions exist, the judge may make an order for
164.25sanitary district annexation for the territory described in the petition.
164.26(b) All taxable property within the annexed area shall be subject to taxation for
164.27any existing bonded indebtedness or other indebtedness of the district for the cost of
164.28acquisition, construction, or improvement of any disposal system or other works or
164.29facilities beneficial to the annexed area to such extent as the chief administrative law judge
164.30may determine to be just and equitable, to be specified in the order for annexation. The
164.31proper officers shall levy further taxes on such property accordingly.
164.32    Subd. 8. Denial of petition. If the chief administrative law judge, after conclusion
164.33of the public notice period or holding a hearing, if required, determines that the sanitary
164.34district annexation in the territory described in the petition is not warranted, the judge shall
164.35make an order denying the petition. The chief administrative law judge shall give notice
164.36of the denial by mail or e-mail to each signer of the petition. No petition for a sanitary
165.1district annexation consisting of the same territory shall be entertained within a year
165.2after the date of an order under this subdivision. Nothing in this subdivision precludes
165.3action on a petition for a sanitary district annexation embracing part of the territory with
165.4or without other territory.
165.5    Subd. 9. Notice of order for sanitary district annexation. The chief administrative
165.6law judge shall publish in the State Register a notice of the final order for sanitary district
165.7annexation, referring to the date of the order and describing the territory of the annexation
165.8area, and shall mail or e-mail information of the publication to each property owner in the
165.9affected territory at the owner's address as given by the county auditor. The information
165.10must state the date that the notice will appear in the State Register and give the Web site
165.11location for the State Register. The notice must:
165.12(1) describe the petition for annexation to the district;
165.13(2) describe the territory affected by the petition; and
165.14(3) state that a certified copy of the order shall be delivered to the secretary of state
165.15for filing ten days after public notice of the order in the State Register.
165.16    Subd. 10. Filing. Ten days after public notice of the order in the State Register, the
165.17chief administrative law judge shall deliver a certified copy of the order to the secretary
165.18of state for filing. Thereupon, the sanitary district annexation is deemed complete, and it
165.19shall be conclusively presumed that all requirements of law relating thereto have been
165.20complied with. The chief administrative law judge shall also transmit a certified copy of
165.21the order for filing to the county auditor of each county and the clerk or recorder of each
165.22municipality and organized town wherein any part of the territory of the district, including
165.23the newly annexed area, is situated and to the secretary of the district board.

165.24    Sec. 8. [442A.06] SANITARY DISTRICT DETACHMENT.
165.25    Subdivision 1. Detachment. (a) A sanitary district detachment may occur under this
165.26chapter for any area within an existing district upon a petition to the chief administrative
165.27law judge stating the grounds therefor as provided in this section.
165.28(b) The proposed detachment must not have any negative environmental impact
165.29on the proposed detachment area.
165.30(c) If the chief administrative law judge and the Minnesota Pollution Control
165.31Agency disagree on the need for a sanitary district detachment, they must determine
165.32whether not allowing the sanitary district detachment will have a detrimental effect on
165.33the environment. If it is determined that the sanitary district detachment will cause
165.34environmental harm, the sanitary district detachment is not allowed unless the detached
165.35area is immediately connected to an existing wastewater treatment system.
166.1    Subd. 2. Proceeding for detachment. (a) A proceeding for sanitary district
166.2detachment may be initiated by a petition to the chief administrative law judge containing
166.3the following:
166.4(1) a request for proposed detachment from a sanitary district;
166.5(2) a statement that the requisite conditions for inclusion in a district no longer exist
166.6in the proposed detachment area;
166.7(3) a legal description of the territory of the proposed detachment, including
166.8justification for inclusion or exclusion for all parcels;
166.9(4) addresses of every property owner within the sanitary district and proposed
166.10detachment area boundaries as provided by the county auditor, with certification from the
166.11county auditor; two sets of address labels for said owners; and a list of e-mail addresses
166.12for said owners, if available;
166.13(5) a statement of the territorial units represented by and qualifications of the
166.14respective signers; and
166.15(6) the post office address of each signer, given under the signer's signature.
166.16A petition may consist of separate writings of like effect, each signed by one or more
166.17qualified persons, and all such writings, when filed, shall be considered together as a
166.18single petition.
166.19(b) Petitioners must conduct and pay for a public meeting to inform citizens of
166.20the proposed detachment from a sanitary district. At the meeting, information must be
166.21provided, including a description of the existing district's territory and a description of the
166.22territory of the proposed detachment area, including justification for inclusion or exclusion
166.23for all parcels for the detachment area. Notice of the meeting must be published for two
166.24successive weeks in a qualified newspaper, as defined under chapter 331A, published
166.25within the territories of the existing sanitary district and proposed detachment area or, if
166.26there is no qualified newspaper published within those territories, in a qualified newspaper
166.27of general circulation in the territories, and must be posted for two weeks in each territorial
166.28unit of the existing sanitary district and proposed detachment area and on the Web site
166.29of the existing sanitary district, if one exists. Notice of the meeting must be mailed or
166.30e-mailed at least three weeks prior to the meeting to all property tax billing addresses for
166.31all parcels included in the sanitary district. The following must be submitted to the chief
166.32administrative law judge with the petition:
166.33(1) a record of the meeting, including copies of all information provided at the
166.34meeting;
166.35(2) a copy of the mailing list provided by the county auditor and used to notify
166.36property owners of the meeting;
167.1(3) a copy of the e-mail list used to notify property owners of the meeting;
167.2(4) the printer's affidavit of publication of public meeting notice;
167.3(5) an affidavit of posting the public meeting notice with information on dates and
167.4locations of posting; and
167.5(6) minutes or other record of the public meeting documenting that the following
167.6topics were discussed: printer's affidavit of publication of each resolution, with copy
167.7of resolution from newspaper attached; and affidavit of resolution posting on town or
167.8existing sanitary district Web site.
167.9(c) Every petition must be signed as follows:
167.10(1) by an authorized officer of the existing sanitary district pursuant to a resolution
167.11of the board;
167.12(2) for each municipality wherein there is a territorial unit of the proposed detachment
167.13area, by an authorized officer pursuant to a resolution of the municipal governing body;
167.14(3) for each organized town wherein there is a territorial unit of the proposed
167.15detachment area, by an authorized officer pursuant to a resolution of the town board; and
167.16(4) for each county wherein there is a territorial unit of the proposed detachment area
167.17consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
167.18county board or by at least 20 percent of the voters residing and owning land within the unit.
167.19(d) Each resolution must be published in the official newspaper of the governing
167.20body adopting it and becomes effective 40 days after publication, unless within said period
167.21there shall be filed with the governing body a petition signed by qualified electors of a
167.22territorial unit of the proposed detachment area, equal in number to five percent of the
167.23number of electors voting at the last preceding election of the governing body, requesting
167.24a referendum on the resolution, in which case the resolution may not become effective
167.25until approved by a majority of the qualified electors voting at a regular election or special
167.26election that the governing body may call. The notice of an election and the ballot to be
167.27used must contain the text of the resolution followed by the question: "Shall the above
167.28resolution be approved?"
167.29(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
167.30the signer's landowner status as shown by the county auditor's tax assessment records,
167.31certified by the auditor, shall be attached to or endorsed upon the petition.
167.32(f) At any time before publication of the public notice required in subdivision 4,
167.33additional signatures may be added to the petition or amendments of the petition may be
167.34made to correct or remedy any error or defect in signature or otherwise except a material
167.35error or defect in the description of the territory of the proposed detachment area. If the
167.36qualifications of any signer of a petition are challenged, the chief administrative law judge
168.1shall determine the challenge forthwith on the allegations of the petition, the county
168.2auditor's certificate of land ownership, and such other evidence as may be received.
168.3    Subd. 3. Joint petition. Different areas may be detached from a district in a single
168.4proceeding upon a joint petition therefor and upon compliance with the provisions of
168.5subdivisions 1 and 2 with respect to the area affected so far as applicable.
168.6    Subd. 4. Notice of intent for sanitary district detachment. (a) Upon receipt
168.7of a petition and record of public meeting required under subdivision 2, the chief
168.8administrative law judge shall publish a notice of intent for sanitary district detachment
168.9in the State Register and mail or e-mail information of the publication to each property
168.10owner in the affected territory at the owner's address as given by the county auditor. The
168.11information must state the date that the notice will appear in the State Register and give
168.12the Web site location for the State Register. The notice must:
168.13(1) describe the petition for sanitary district detachment;
168.14(2) describe the territory affected by the petition;
168.15(3) allow 30 days for submission of written comments on the petition;
168.16(4) state that a person who objects to the petition may submit a written request for
168.17hearing to the chief administrative law judge within 30 days of the publication of the
168.18notice in the State Register; and
168.19(5) state that if a timely request for hearing is not received, the chief administrative
168.20law judge may make a decision on the petition.
168.21(b) If 50 or more individual timely requests for hearing are received, the chief
168.22administrative law judge must hold a hearing on the petition according to the contested case
168.23provisions of chapter 14. The sanitary district or detachment area proposers are responsible
168.24for paying all costs involved in publicizing and holding a hearing on the petition.
168.25    Subd. 5. Hearing time, place. If a hearing is required under subdivision 4, the
168.26chief administrative law judge shall designate a time and place for a hearing according
168.27to section 442A.13.
168.28    Subd. 6. Relevant factors. (a) In arriving at a decision, the chief administrative law
168.29judge shall consider the following factors:
168.30(1) public health, safety, and welfare impacts for the proposed detachment area;
168.31(2) alternatives for managing the public health impacts for the proposed detachment
168.32area;
168.33(3) equities of the petition proposal;
168.34(4) contours of the petition proposal; and
168.35(5) public notification of and interaction on the petition proposal.
169.1(b) Based upon these factors, the chief administrative law judge may order the
169.2detachment from the sanitary district on finding that:
169.3(1) the proposed detachment area has adequate alternatives for managing public
169.4health impacts due to the detachment;
169.5(2) the proposed detachment area is not necessary for the district to provide a
169.6long-term, equitable solution to pollution problems affecting public health, safety, and
169.7welfare;
169.8(3) property owners within the existing sanitary district and proposed detachment
169.9area were provided notice of the proposed detachment and opportunity to comment on
169.10the petition proposal; and
169.11(4) the petition complied with the requirements of all applicable statutes and rules
169.12pertaining to sanitary district detachment.
169.13(c) The chief administrative law judge may alter the boundaries of the proposed
169.14detachment area by increasing or decreasing the area to be included or may exclude
169.15property that may be better served by another unit of government. The chief administrative
169.16law judge may also alter the boundaries of the proposed detachment area so as to follow
169.17visible, clearly recognizable physical features for municipal boundaries.
169.18(d) The chief administrative law judge may deny sanitary district detachment if the
169.19area, or a part thereof, would be better served by an alternative method.
169.20(e) In all cases, the chief administrative law judge shall set forth the factors that are
169.21the basis for the decision.
169.22    Subd. 7. Findings; order. (a) After the public notice period or the public hearing, if
169.23required under subdivision 4, and based on the petition, any public comments received,
169.24and, if a hearing was held, the hearing record, the chief administrative law judge shall
169.25make findings of fact and conclusions determining whether the conditions requisite for
169.26the sanitary district detachment exist in the territory described in the petition. If the chief
169.27administrative law judge finds that conditions exist, the judge may make an order for
169.28sanitary district detachment for the territory described in the petition.
169.29(b) All taxable property within the detached area shall remain subject to taxation
169.30for any existing bonded indebtedness of the district to such extent as it would have been
169.31subject thereto if not detached and shall also remain subject to taxation for any other
169.32existing indebtedness of the district incurred for any purpose beneficial to such area to
169.33such extent as the chief administrative law judge may determine to be just and equitable,
169.34to be specified in the order for detachment. The proper officers shall levy further taxes on
169.35such property accordingly.
170.1    Subd. 8. Denial of petition. If the chief administrative law judge, after conclusion
170.2of the public notice period or holding a hearing, if required, determines that the sanitary
170.3district detachment in the territory described in the petition is not warranted, the judge
170.4shall make an order denying the petition. The chief administrative law judge shall give
170.5notice of the denial by mail or e-mail to each signer of the petition. No petition for a
170.6detachment from a district consisting of the same territory shall be entertained within a
170.7year after the date of an order under this subdivision. Nothing in this subdivision precludes
170.8action on a petition for a detachment from a district embracing part of the territory with
170.9or without other territory.
170.10    Subd. 9. Notice of order for sanitary district detachment. The chief
170.11administrative law judge shall publish in the State Register a notice of the final order
170.12for sanitary district detachment, referring to the date of the order and describing the
170.13territory of the detached area and shall mail or e-mail information of the publication
170.14to each property owner in the affected territory at the owner's address as given by the
170.15county auditor. The information must state the date that the notice will appear in the State
170.16Register and give the Web site location for the State Register. The notice must:
170.17(1) describe the petition for detachment from the district;
170.18(2) describe the territory affected by the petition; and
170.19(3) state that a certified copy of the order shall be delivered to the secretary of state
170.20for filing ten days after public notice of the order in the State Register.
170.21    Subd. 10. Filing. Ten days after public notice of the order in the State Register, the
170.22chief administrative law judge shall deliver a certified copy of the order to the secretary of
170.23state for filing. Thereupon, the sanitary district detachment is deemed complete, and it
170.24shall be conclusively presumed that all requirements of law relating thereto have been
170.25complied with. The chief administrative law judge shall also transmit a certified copy of
170.26the order for filing to the county auditor of each county and the clerk or recorder of each
170.27municipality and organized town wherein any part of the territory of the district, including
170.28the newly detached area, is situated and to the secretary of the district board.

170.29    Sec. 9. [442A.07] SANITARY DISTRICT DISSOLUTION.
170.30    Subdivision 1. Dissolution. (a) An existing sanitary district may be dissolved under
170.31this chapter upon a petition to the chief administrative law judge stating the grounds
170.32therefor as provided in this section.
170.33(b) The proposed dissolution must not have any negative environmental impact on
170.34the existing sanitary district area.
171.1(c) If the chief administrative law judge and the Minnesota Pollution Control
171.2Agency disagree on the need to dissolve a sanitary district, they must determine whether
171.3not dissolving the sanitary district will have a detrimental effect on the environment. If
171.4it is determined that the sanitary district dissolution will cause environmental harm, the
171.5sanitary district dissolution is not allowed unless the existing sanitary district area is
171.6immediately connected to an existing wastewater treatment system.
171.7    Subd. 2. Proceeding for dissolution. (a) A proceeding for sanitary district
171.8dissolution may be initiated by a petition to the chief administrative law judge containing
171.9the following:
171.10(1) a request for proposed sanitary district dissolution;
171.11(2) a statement that the requisite conditions for a sanitary district no longer exist
171.12in the district area;
171.13(3) a proposal for distribution of the remaining funds of the district, if any, among
171.14the related governmental subdivisions;
171.15(4) a legal description of the territory of the proposed dissolution;
171.16(5) addresses of every property owner within the sanitary district boundaries as
171.17provided by the county auditor, with certification from the county auditor; two sets of
171.18address labels for said owners; and a list of e-mail addresses for said owners, if available;
171.19(6) a statement of the territorial units represented by and the qualifications of the
171.20respective signers; and
171.21(7) the post office address of each signer, given under the signer's signature.
171.22A petition may consist of separate writings of like effect, each signed by one or more
171.23qualified persons, and all such writings, when filed, shall be considered together as a
171.24single petition.
171.25(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
171.26proposed dissolution of a sanitary district. At the meeting, information must be provided,
171.27including a description of the existing district's territory. Notice of the meeting must be
171.28published for two successive weeks in a qualified newspaper, as defined under chapter
171.29331A, published within the territory of the sanitary district or, if there is no qualified
171.30newspaper published within that territory, in a qualified newspaper of general circulation
171.31in the territory and must be posted for two weeks in each territorial unit of the sanitary
171.32district and on the Web site of the existing sanitary district, if one exists. Notice of the
171.33meeting must be mailed or e-mailed at least three weeks prior to the meeting to all property
171.34tax billing addresses for all parcels included in the sanitary district. The following must be
171.35submitted to the chief administrative law judge with the petition:
172.1(1) a record of the meeting, including copies of all information provided at the
172.2meeting;
172.3(2) a copy of the mailing list provided by the county auditor and used to notify
172.4property owners of the meeting;
172.5(3) a copy of the e-mail list used to notify property owners of the meeting;
172.6(4) the printer's affidavit of publication of public meeting notice;
172.7(5) an affidavit of posting the public meeting notice with information on dates and
172.8locations of posting; and
172.9(6) minutes or other record of the public meeting documenting that the following
172.10topics were discussed: printer's affidavit of publication of each resolution, with copy
172.11of resolution from newspaper attached; and affidavit of resolution posting on town or
172.12existing sanitary district Web site.
172.13(c) Every petition must be signed as follows:
172.14(1) by an authorized officer of the existing sanitary district pursuant to a resolution
172.15of the board;
172.16(2) for each municipality wherein there is a territorial unit of the existing sanitary
172.17district, by an authorized officer pursuant to a resolution of the municipal governing body;
172.18(3) for each organized town wherein there is a territorial unit of the existing sanitary
172.19district, by an authorized officer pursuant to a resolution of the town board; and
172.20(4) for each county wherein there is a territorial unit of the existing sanitary district
172.21consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
172.22county board or by at least 20 percent of the voters residing and owning land within the unit.
172.23(d) Each resolution must be published in the official newspaper of the governing body
172.24adopting it and becomes effective 40 days after publication, unless within said period there
172.25shall be filed with the governing body a petition signed by qualified electors of a territorial
172.26unit of the district, equal in number to five percent of the number of electors voting at the
172.27last preceding election of the governing body, requesting a referendum on the resolution,
172.28in which case the resolution may not become effective until approved by a majority of the
172.29qualified electors voting at a regular election or special election that the governing body
172.30may call. The notice of an election and the ballot to be used must contain the text of the
172.31resolution followed by the question: "Shall the above resolution be approved?"
172.32(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
172.33the signer's landowner status as shown by the county auditor's tax assessment records,
172.34certified by the auditor, shall be attached to or endorsed upon the petition.
172.35(f) At any time before publication of the public notice required in subdivision 3,
172.36additional signatures may be added to the petition or amendments of the petition may be
173.1made to correct or remedy any error or defect in signature or otherwise except a material
173.2error or defect in the description of the territory of the proposed dissolution area. If the
173.3qualifications of any signer of a petition are challenged, the chief administrative law judge
173.4shall determine the challenge forthwith on the allegations of the petition, the county
173.5auditor's certificate of land ownership, and such other evidence as may be received.
173.6    Subd. 3. Notice of intent for sanitary district dissolution. (a) Upon receipt
173.7of a petition and record of the public meeting required under subdivision 2, the chief
173.8administrative law judge shall publish a notice of intent of sanitary district dissolution
173.9in the State Register and mail or e-mail information of the publication to each property
173.10owner in the affected territory at the owner's address as given by the county auditor. The
173.11information must state the date that the notice will appear in the State Register and give
173.12the Web site location for the State Register. The notice must:
173.13(1) describe the petition for sanitary district dissolution;
173.14(2) describe the territory affected by the petition;
173.15(3) allow 30 days for submission of written comments on the petition;
173.16(4) state that a person who objects to the petition may submit a written request for
173.17hearing to the chief administrative law judge within 30 days of the publication of the
173.18notice in the State Register; and
173.19(5) state that if a timely request for hearing is not received, the chief administrative
173.20law judge may make a decision on the petition.
173.21(b) If 50 or more individual timely requests for hearing are received, the chief
173.22administrative law judge must hold a hearing on the petition according to the contested
173.23case provisions of chapter 14. The sanitary district dissolution proposers are responsible
173.24for paying all costs involved in publicizing and holding a hearing on the petition.
173.25    Subd. 4. Hearing time, place. If a hearing is required under subdivision 3, the
173.26chief administrative law judge shall designate a time and place for a hearing according
173.27to section 442A.13.
173.28    Subd. 5. Relevant factors. (a) In arriving at a decision, the chief administrative law
173.29judge shall consider the following factors:
173.30(1) public health, safety, and welfare impacts for the proposed dissolution;
173.31(2) alternatives for managing the public health impacts for the proposed dissolution;
173.32(3) equities of the petition proposal;
173.33(4) contours of the petition proposal; and
173.34(5) public notification of and interaction on the petition proposal.
173.35(b) Based upon these factors, the chief administrative law judge may order the
173.36dissolution of the sanitary district on finding that:
174.1(1) the proposed dissolution area has adequate alternatives for managing public
174.2health impacts due to the dissolution;
174.3(2) the sanitary district is not necessary to provide a long-term, equitable solution to
174.4pollution problems affecting public health, safety, and welfare;
174.5(3) property owners within the sanitary district were provided notice of the proposed
174.6dissolution and opportunity to comment on the petition proposal; and
174.7(4) the petition complied with the requirements of all applicable statutes and rules
174.8pertaining to sanitary district dissolution.
174.9(c) The chief administrative law judge may alter the boundaries of the proposed
174.10dissolution area by increasing or decreasing the area to be included or may exclude
174.11property that may be better served by another unit of government. The chief administrative
174.12law judge may also alter the boundaries of the proposed dissolution area so as to follow
174.13visible, clearly recognizable physical features for municipal boundaries.
174.14(d) The chief administrative law judge may deny sanitary district dissolution if the
174.15area, or a part thereof, would be better served by an alternative method.
174.16(e) In all cases, the chief administrative law judge shall set forth the factors that are
174.17the basis for the decision.
174.18    Subd. 6. Findings; order. (a) After the public notice period or the public hearing, if
174.19required under subdivision 3, and based on the petition, any public comments received,
174.20and, if a hearing was held, the hearing record, the chief administrative law judge shall
174.21make findings of fact and conclusions determining whether the conditions requisite for
174.22the sanitary district dissolution exist in the territory described in the petition. If the chief
174.23administrative law judge finds that conditions exist, the judge may make an order for
174.24sanitary district dissolution for the territory described in the petition.
174.25(b) If the chief administrative law judge determines that the conditions requisite for
174.26the creation of the district no longer exist therein, that all indebtedness of the district has
174.27been paid, and that all property of the district except funds has been disposed of, the judge
174.28may make an order dissolving the district and directing the distribution of its remaining
174.29funds, if any, among the related governmental subdivisions on such basis as the chief
174.30administrative law judge determines to be just and equitable, to be specified in the order.
174.31    Subd. 7. Denial of petition. If the chief administrative law judge, after conclusion
174.32of the public notice period or holding a hearing, if required, determines that the sanitary
174.33district dissolution in the territory described in the petition is not warranted, the judge
174.34shall make an order denying the petition. The chief administrative law judge shall give
174.35notice of the denial by mail or e-mail to each signer of the petition. No petition for the
175.1dissolution of a district consisting of the same territory shall be entertained within a year
175.2after the date of an order under this subdivision.
175.3    Subd. 8. Notice of order for sanitary district dissolution. The chief administrative
175.4law judge shall publish in the State Register a notice of the final order for sanitary
175.5district dissolution, referring to the date of the order and describing the territory of the
175.6dissolved district and shall mail or e-mail information of the publication to each property
175.7owner in the affected territory at the owner's address as given by the county auditor. The
175.8information must state the date that the notice will appear in the State Register and give
175.9the Web site location of the State Register. The notice must:
175.10(1) describe the petition for dissolution of the district;
175.11(2) describe the territory affected by the petition; and
175.12(3) state that a certified copy of the order shall be delivered to the secretary of state
175.13for filing ten days after public notice of the order in the State Register.
175.14    Subd. 9. Filing. (a) Ten days after public notice of the order in the State Register,
175.15the chief administrative law judge shall deliver a certified copy of the order to the secretary
175.16of state for filing. Thereupon, the sanitary district dissolution is deemed complete, and it
175.17shall be conclusively presumed that all requirements of law relating thereto have been
175.18complied with. The chief administrative law judge shall also transmit a certified copy of
175.19the order for filing to the county auditor of each county and the clerk or recorder of each
175.20municipality and organized town wherein any part of the territory of the dissolved district
175.21is situated and to the secretary of the district board.
175.22(b) The chief administrative law judge shall also transmit a certified copy of the order
175.23to the treasurer of the district, who must thereupon distribute the remaining funds of the
175.24district as directed by the order and who is responsible for the funds until so distributed.

175.25    Sec. 10. [442A.08] JOINT PUBLIC INFORMATIONAL MEETING.
175.26There must be a joint public informational meeting of the local governments of any
175.27proposed sanitary district creation, annexation, detachment, or dissolution. The joint public
175.28informational meeting must be held after the final mediation meeting or the final meeting
175.29held according to section 442A.02, subdivision 8, if any, and before the hearing on the
175.30matter is held. If no mediation meetings are held, the joint public informational meeting
175.31must be held after the initiating documents have been filed and before the hearing on the
175.32matter. The time, date, and place of the public informational meeting must be determined
175.33jointly by the local governments in the proposed creation, annexation, detachment, or
175.34dissolution areas and by the sanitary district, if one exists. The chair of the sanitary district,
175.35if one exists, and the responsible official for one of the local governments represented at
176.1the meeting must serve as the co-chairs for the informational meeting. Notice of the time,
176.2date, place, and purpose of the informational meeting must be posted by the sanitary
176.3district, if one exists, and local governments in designated places for posting notices. The
176.4sanitary district, if one exists, and represented local governments must also publish, at their
176.5own expense, notice in their respective official newspapers. If the same official newspaper
176.6is used by multiple local government representatives or the sanitary district, a joint notice
176.7may be published and the costs evenly divided. All notice required by this section must
176.8be provided at least ten days before the date for the public informational meeting. At the
176.9public informational meeting, all persons appearing must have an opportunity to be heard,
176.10but the co-chairs may, by mutual agreement, establish the amount of time allowed for each
176.11speaker. The sanitary district board, the local government representatives, and any resident
176.12or affected property owner may be represented by counsel and may place into the record of
176.13the informational meeting documents, expert opinions, or other materials supporting their
176.14positions on issues raised by the proposed proceeding. The secretary of the sanitary district,
176.15if one exists, or a person appointed by the chair must record minutes of the proceedings of
176.16the informational meeting and must make an audio recording of the informational meeting.
176.17The sanitary district, if one exists, or a person appointed by the chair must provide the
176.18chief administrative law judge and the represented local governments with a copy of the
176.19printed minutes and must provide the chief administrative law judge and the represented
176.20local governments with a copy of the audio recording. The record of the informational
176.21meeting for a proceeding under section 442A.04, 442A.05, 442A.06, or 442A.07 is
176.22admissible in any proceeding under this chapter and shall be taken into consideration by
176.23the chief administrative law judge or the chief administrative law judge's designee.

176.24    Sec. 11. [442A.09] ANNEXATION BY ORDER OF POLLUTION CONTROL
176.25AGENCY.
176.26    Subdivision 1. Annexation by ordinance alternative. If a determination or order
176.27by the Minnesota Pollution Control Agency under section 115.49 or other similar statute is
176.28made that cooperation by contract is necessary and feasible between a sanitary district and
176.29an unincorporated area located outside the existing corporate limits of the sanitary district,
176.30the sanitary district required to provide or extend through a contract a governmental
176.31service to an unincorporated area, during the statutory 90-day period provided in section
176.32115.49 to formulate a contract, may in the alternative to formulating a service contract to
176.33provide or extend the service, declare the unincorporated area described in the Minnesota
176.34Pollution Control Agency's determination letter or order annexed to the sanitary district by
176.35adopting an ordinance and submitting it to the chief administrative law judge.
177.1    Subd. 2. Chief administrative law judge's role. The chief administrative law
177.2judge may review and comment on the ordinance but shall approve the ordinance within
177.330 days of receipt. The ordinance is final and the annexation is effective on the date the
177.4chief administrative law judge approves the ordinance.

177.5    Sec. 12. [442A.10] PETITIONERS TO PAY EXPENSES.
177.6Expenses of the preparation and submission of petitions in the proceedings under
177.7sections 442A.04 to 442A.09 shall be paid by the petitioners. Notwithstanding section
177.816A.1283, the Office of Administrative Hearings may adopt rules according to section
177.914.386 to establish fees necessary to support the preparation and submission of petitions
177.10in proceedings under sections 442A.04 to 442A.09. The fees collected by the Office of
177.11Administrative Hearings shall be deposited in the environmental fund.
177.12EFFECTIVE DATE.This section is effective the day following final enactment.

177.13    Sec. 13. [442A.11] TIME LIMITS FOR ORDERS; APPEALS.
177.14    Subdivision 1. Orders; time limit. All orders in proceedings under this chapter
177.15shall be issued within one year from the date of the first hearing thereon, provided that
177.16the time may be extended for a fixed additional period upon consent of all parties of
177.17record. Failure to so order shall be deemed to be an order denying the matter. An appeal
177.18may be taken from such failure to so order in the same manner as an appeal from an
177.19order as provided in subdivision 2.
177.20    Subd. 2. Grounds for appeal. (a) Any person aggrieved by an order issued under
177.21this chapter may appeal to the district court upon the following grounds:
177.22(1) the order was issued without jurisdiction to act;
177.23(2) the order exceeded the jurisdiction of the presiding administrative law judge;
177.24(3) the order was arbitrary, fraudulent, capricious, or oppressive or in unreasonable
177.25disregard of the best interests of the territory affected; or
177.26(4) the order was based upon an erroneous theory of law.
177.27(b) The appeal must be taken in the district court in the county in which the majority
177.28of the area affected is located. The appeal does not stay the effect of the order. All notices
177.29and other documents must be served on both the chief administrative law judge and the
177.30attorney general's assistant assigned to the chief administrative law judge for purposes
177.31of this chapter.
177.32(c) If the court determines that the action involved is unlawful or unreasonable or is
177.33not warranted by the evidence in case an issue of fact is involved, the court may vacate or
178.1suspend the action involved, in whole or in part, as the case requires. The matter shall then
178.2be remanded for further action in conformity with the decision of the court.
178.3(d) To render a review of an order effectual, the aggrieved person shall file with the
178.4court administrator of the district court of the county in which the majority of the area is
178.5located, within 30 days of the order, an application for review together with the grounds
178.6upon which the review is sought.
178.7(e) An appeal lies from the district court as in other civil cases.

178.8    Sec. 14. [442A.12] CHIEF ADMINISTRATIVE LAW JUDGE MAY APPEAL
178.9FROM DISTRICT COURT.
178.10An appeal may be taken under the Rules of Civil Appellate Procedure by the chief
178.11administrative law judge from a final order or judgment made or rendered by the district
178.12court when the chief administrative law judge determines that the final order or judgment
178.13adversely affects the public interest.

178.14    Sec. 15. [442A.13] UNIFORM PROCEDURES.
178.15    Subdivision 1. Hearings. (a) Proceedings initiated by the submission of an initiating
178.16document or by the chief administrative law judge shall come on for hearing within 30 to
178.1760 days from receipt of the document by the chief administrative law judge or from the
178.18date of the chief administrative law judge's action and the person conducting the hearing
178.19must submit an order no later than one year from the date of the first hearing.
178.20(b) The place of the hearing shall be in the county where a majority of the affected
178.21territory is situated, and shall be established for the convenience of the parties.
178.22(c) The chief administrative law judge shall mail notice of the hearing to the
178.23following parties: the sanitary district; any township or municipality presently governing
178.24the affected territory; any township or municipality abutting the affected territory;
178.25the county where the affected territory is situated; and each planning agency that has
178.26jurisdiction over the affected area.
178.27(d) The chief administrative law judge shall see that notice of the hearing is published
178.28for two successive weeks in a legal newspaper of general circulation in the affected area.
178.29(e) When the chief administrative law judge exercises authority to change the
178.30boundaries of the affected area so as to increase the quantity of land, the hearing shall
178.31be recessed and reconvened upon two weeks' published notice in a legal newspaper of
178.32general circulation in the affected area.
178.33    Subd. 2. Transmittal of order. The chief administrative law judge shall see that
178.34copies of the order are mailed to all parties entitled to mailed notice of hearing under
179.1subdivision 1, individual property owners if initiated in that manner, and any other party
179.2of record.

179.3    Sec. 16. [442A.14] DISTRICT BOARD OF MANAGERS.
179.4    Subdivision 1. Composition. The governing body of each district shall be a board
179.5of managers of five members, who shall be voters residing in the district and who may
179.6but need not be officers, members of governing bodies, or employees of the related
179.7governmental subdivisions, except that when there are more than five territorial units in
179.8a district, there must be one board member for each unit.
179.9    Subd. 2. Terms. The terms of the first board members elected after creation of a
179.10district shall be so arranged and determined by the electing body as to expire on the first
179.11business day in January as follows:
179.12(1) the terms of two members in the second calendar year after the year in which
179.13they were elected;
179.14(2) the terms of two other members in the third calendar year after the year in which
179.15they were elected; and
179.16(3) the term of the remaining member in the fourth calendar year after the year in
179.17which the member was elected. In case a board has more than five members, the additional
179.18members shall be assigned to the groups under clauses (1) to (3) to equalize the groups as
179.19far as practicable. Thereafter, board members shall be elected successively for regular
179.20terms beginning upon expiration of the preceding terms and expiring on the first business
179.21day in January of the third calendar year thereafter. Each board member serves until
179.22a successor is elected and has qualified.
179.23    Subd. 3. Election of board. In a district having only one territorial unit, all the
179.24members of the board shall be elected by the related governing body. In a district having
179.25more than one territorial unit, the members of the board shall be elected by the members
179.26of the related governing bodies in joint session except as otherwise provided. The electing
179.27bodies concerned shall meet and elect the first board members of a new district as soon
179.28as practicable after creation of the district and shall meet and elect board members for
179.29succeeding regular terms as soon as practicable after November 1 next preceding the
179.30beginning of the terms to be filled, respectively.
179.31    Subd. 4. Central related governing body. Upon the creation of a district
179.32having more than one territorial unit, the chief administrative law judge, on the basis of
179.33convenience for joint meeting purposes, shall designate one of the related governing
179.34bodies as the central related governing body in the order creating the district or in a
179.35subsequent special order, of which the chief administrative law judge shall notify the
180.1clerks or recorders of all the related governing bodies. Upon receipt of the notification,
180.2the clerk or recorder of the central related governing body shall immediately transmit the
180.3notification to the presiding officer of the body. The officer shall thereupon call a joint
180.4meeting of the members of all the related governing bodies to elect board members, to
180.5be held at such time as the officer shall fix at the regular meeting place of the officer's
180.6governing body or at such other place in the district as the officer shall determine. The
180.7clerk or recorder of the body must give at least ten days' notice of the meeting by mail to
180.8the clerks or recorders of all the other related governing bodies, who shall immediately
180.9transmit the notice to all the members of the related governing bodies, respectively.
180.10Subsequent joint meetings to elect board members for regular terms must be called and
180.11held in like manner. The presiding officer and the clerk or recorder of the central related
180.12governing body shall act respectively as chair and secretary of the joint electing body at
180.13any meeting thereof, but in case of the absence or disability of either of them, the body
180.14may elect a temporary substitute. A majority of the members of each related governing
180.15body is required for a quorum at any meeting of the joint electing body.
180.16    Subd. 5. Nominations. Nominations for board members may be made by petitions,
180.17each signed by ten or more voters residing and owning land in the district, filed with the
180.18clerk, recorder, or secretary of the electing body before the election meeting. No person
180.19shall sign more than one petition. The electing body shall give due consideration to all
180.20nominations but is not limited thereto.
180.21    Subd. 6. Election; single governing body. In the case of an electing body
180.22consisting of a single related governing body, a majority vote of all members is required
180.23for an election. In the case of a joint electing body, a majority vote of members present is
180.24required for an election. In case of lack of a quorum or failure to elect, a meeting of an
180.25electing body may be adjourned to a stated time and place without further notice.
180.26    Subd. 7. Election; multiple governing bodies. In any district having more than
180.27one territorial unit, the related governing bodies, instead of meeting in joint session, may
180.28elect a board member by resolutions adopted by all of them separately, concurring in the
180.29election of the same person. A majority vote of all members of each related governing
180.30body is required for the adoption of any such resolution. The clerks or recorders of the
180.31other related governing bodies shall transmit certified copies of the resolutions to the clerk
180.32or recorder of the central related governing body. Upon receipt of concurring resolutions
180.33from all the related governing bodies, the presiding officer and clerk or recorder of the
180.34central related governing body shall certify the results and furnish certificates of election
180.35as provided for a joint meeting.
181.1    Subd. 8. Vacancies. Any vacancy in the membership of a board must be filled for
181.2the unexpired term in like manner as provided for the regular election of board members.
181.3    Subd. 9. Certification of election; temporary chair. The presiding and recording
181.4officers of the electing body shall certify the results of each election to the county auditor
181.5of each county wherein any part of the district is situated and to the clerk or recorder of
181.6each related governing body and shall make and transmit to each board member elected
181.7a certificate of the board member's election. Upon electing the first board members of a
181.8district, the presiding officer of the electing body shall designate a member to serve as
181.9temporary chair for purposes of initial organization of the board, and the recording
181.10officer of the body shall include written notice thereof to all the board members with
181.11their certificates of election.

181.12    Sec. 17. [442A.15] BOARD ORGANIZATION AND PROCEDURES.
181.13    Subdivision 1. Initial, annual meetings. As soon as practicable after the election
181.14of the first board members of a district, the board shall meet at the call of the temporary
181.15chair to elect officers and take other appropriate action for organization and administration
181.16of the district. Each board shall hold a regular annual meeting at the call of the chair or
181.17otherwise as the board prescribes on or as soon as practicable after the first business day in
181.18January of each year and such other regular and special meetings as the board prescribes.
181.19    Subd. 2. Officers. The officers of each district shall be a chair and a vice-chair,
181.20who shall be members of the board, and a secretary and a treasurer, who may but need
181.21not be members of the board. The board of a new district at its initial meeting or as soon
181.22thereafter as practicable shall elect the officers to serve until the first business day in
181.23January next following. Thereafter, the board shall elect the officers at each regular annual
181.24meeting for terms expiring on the first business day in January next following. Each
181.25officer serves until a successor is elected and has qualified.
181.26    Subd. 3. Meeting place; offices. The board at its initial meeting or as soon
181.27thereafter as practicable shall provide for suitable places for board meetings and for offices
181.28of the district officers and may change the same thereafter as the board deems advisable.
181.29The meeting place and offices may be the same as those of any related governing body,
181.30with the approval of the body. The secretary of the board shall notify the secretary of state,
181.31the county auditor of each county wherein any part of the district is situated, and the clerk
181.32or recorder of each related governing body of the locations and post office addresses of the
181.33meeting place and offices and any changes therein.
181.34    Subd. 4. Budget. At any time before the proceeds of the first tax levy in a district
181.35become available, the district board may prepare a budget comprising an estimate of the
182.1expenses of organizing and administering the district until the proceeds are available, with
182.2a proposal for apportionment of the estimated amount among the related governmental
182.3subdivisions, and may request the governing bodies thereof to advance funds according to
182.4the proposal. The governing bodies may authorize advancement of the requested amounts,
182.5or such part thereof as they respectively deem proper, from any funds available in their
182.6respective treasuries. The board shall include in its first tax levy after receipt of any such
182.7advancements a sufficient sum to cover the same and shall cause the same to be repaid,
182.8without interest, from the proceeds of taxes as soon as received.

182.9    Sec. 18. [442A.16] DISTRICT STATUS AND POWERS.
182.10    Subdivision 1. Status. Every district shall be a public corporation and a governmental
182.11subdivision of the state and shall be deemed to be a municipality or municipal corporation
182.12for the purpose of obtaining federal or state grants or loans or otherwise complying with
182.13any provision of federal or state law or for any other purpose relating to the powers and
182.14purposes of the district for which such status is now or hereafter required by law.
182.15    Subd. 2. Powers and purpose. Every district shall have the powers and purposes
182.16prescribed by this chapter and such others as may now or hereafter be prescribed by law.
182.17No express grant of power or enumeration of powers herein shall be deemed to limit the
182.18generality or scope of any grant of power.
182.19    Subd. 3. Scope of powers and duties. Except as otherwise provided, a power or
182.20duty vested in or imposed upon a district or any of its officers, agents, or employees shall
182.21not be deemed exclusive and shall not supersede or abridge any power or duty vested in or
182.22imposed upon any other agency of the state or any governmental subdivision thereof, but
182.23shall be supplementary thereto.
182.24    Subd. 4. Exercise of power. All the powers of a district shall be exercised by its
182.25board of managers except so far as approval of any action by popular vote or by any other
182.26authority may be expressly required by law.
182.27    Subd. 5. Lawsuits; contracts. A district may sue and be sued and may enter into
182.28any contract necessary or proper for the exercise of its powers or the accomplishment
182.29of its purposes.
182.30    Subd. 6. Property acquisition. A district may acquire by purchase, gift, or
182.31condemnation or may lease or rent any real or personal property within or without the
182.32district that may be necessary for the exercise of district powers or the accomplishment of
182.33district purposes, may hold the property for such purposes, and may lease, rent out, sell, or
182.34otherwise dispose of any property not needed for such purposes.
183.1    Subd. 7. Acceptance of money or property. A district may accept gifts, grants,
183.2or loans of money or other property from the United States, the state, or any person,
183.3corporation, or other entity for district purposes; may enter into any agreement required in
183.4connection therewith; and may hold, use, and dispose of the money or property according
183.5to the terms of the gift, grant, loan, or agreement relating thereto.

183.6    Sec. 19. [442A.17] SPECIFIC PURPOSES AND POWERS.
183.7    Subdivision 1. Pollution prevention. A district may construct, install, improve,
183.8maintain, and operate any system, works, or facilities within or without the district
183.9required to control and prevent pollution of any waters of the state within its territory.
183.10    Subd. 2. Sewage disposal. A district may construct, install, improve, maintain,
183.11and operate any system, works, or facilities within or without the district required to
183.12provide for, regulate, and control the disposal of sewage, industrial waste, and other waste
183.13originating within its territory. The district may require any person upon whose premises
183.14there is any source of sewage, industrial waste, or other waste within the district to
183.15connect the premises with the disposal system, works, or facilities of the district whenever
183.16reasonable opportunity therefor is provided.
183.17    Subd. 3. Garbage, refuse disposal. A district may construct, install, improve,
183.18maintain, and operate any system, works, or facilities within or without the district required
183.19to provide for, regulate, and control the disposal of garbage or refuse originating within the
183.20district. The district may require any person upon whose premises any garbage or refuse is
183.21produced or accumulated to dispose of the garbage or refuse through the system, works, or
183.22facilities of the district whenever reasonable opportunity therefor is provided.
183.23    Subd. 4. Water supply. A district may procure supplies of water necessary for any
183.24purpose under subdivisions 1 to 3 and may construct, install, improve, maintain, and
183.25operate any system, works, or facilities required therefor within or without the district.
183.26    Subd. 5. Roads. (a) To maintain the integrity of and facilitate access to district
183.27systems, works, or facilities, the district may maintain and repair a road by agreement with
183.28the entity that was responsible for the performance of maintenance and repair immediately
183.29prior to the agreement. Maintenance and repair includes but is not limited to providing
183.30lighting, snow removal, and grass mowing.
183.31(b) A district shall establish a taxing subdistrict of benefited property and shall levy
183.32special taxes, pursuant to section 442A.24, subdivision 2, for the purposes of paying the
183.33cost of improvement or maintenance of a road under paragraph (a).
183.34(c) For purposes of this subdivision, a district shall not be construed as a road
183.35authority under chapter 160.
184.1(d) The district and its officers and employees are exempt from liability for any tort
184.2claim for injury to person or property arising from travel on a road maintained by the
184.3district and related to the road's maintenance or condition.

184.4    Sec. 20. [442A.18] DISTRICT PROJECTS AND FACILITIES.
184.5    Subdivision 1. Public property. For the purpose of constructing, improving,
184.6maintaining, or operating any system, works, or facilities designed or used for any purpose
184.7under section 442A.17, a district, its officers, agents, employees, and contractors may enter,
184.8occupy, excavate, and otherwise operate in, upon, under, through, or along any public
184.9highway, including a state trunk highway, or any street, park, or other public grounds so
184.10far as necessary for such work, with the approval of the governing body or other authority
184.11in charge of the public property affected and on such terms as may be agreed upon with the
184.12governing body or authority respecting interference with public use, restoration of previous
184.13conditions, compensation for damages, and other pertinent matters. If an agreement cannot
184.14be reached after reasonable opportunity therefor, the district may acquire the necessary
184.15rights, easements, or other interests in the public property by condemnation, subject to all
184.16applicable provisions of law as in case of taking private property, upon condition that the
184.17court shall determine that there is paramount public necessity for the acquisition.
184.18    Subd. 2. Use of other systems. A district may, upon such terms as may be
184.19agreed upon with the respective governing bodies or authorities concerned, provide for
184.20connecting with or using; lease; or acquire and take over any system, works, or facilities
184.21for any purpose under section 442A.17 belonging to any other governmental subdivision
184.22or other public agency.
184.23    Subd. 3. Use by other governmental bodies. A district may, upon such terms
184.24as may be agreed upon with the respective governing bodies or authorities concerned,
184.25authorize the use by any other governmental subdivision or other public agency of any
184.26system, works, or facilities of the district constructed for any purpose under section
184.27442A.17 so far as the capacity thereof is sufficient beyond the needs of the district. A
184.28district may extend any such system, works, or facilities and permit the use thereof by
184.29persons outside the district, so far as the capacity thereof is sufficient beyond the needs of
184.30the district, upon such terms as the board may prescribe.
184.31    Subd. 4. Joint projects. A district may be a party to a joint cooperative project,
184.32undertaking, or enterprise with one or more other governmental subdivisions or other
184.33public agencies for any purpose under section 442A.17 upon such terms as may be
184.34agreed upon between the governing bodies or authorities concerned. Without limiting the
184.35effect of the foregoing provision or any other provision of this chapter, a district, with
185.1respect to any of said purposes, may act under and be subject to section 471.59, or any
185.2other appropriate law providing for joint or cooperative action between governmental
185.3subdivisions or other public agencies.

185.4    Sec. 21. [442A.19] CONTROL OF SANITARY FACILITIES.
185.5A district may regulate and control the construction, maintenance, and use of privies,
185.6cesspools, septic tanks, toilets, and other facilities and devices for the reception or disposal
185.7of human or animal excreta or other domestic wastes within its territory so far as necessary
185.8to prevent nuisances or pollution or to protect the public health, safety, and welfare
185.9and may prohibit the use of any such facilities or devices not connected with a district
185.10disposal system, works, or facilities whenever reasonable opportunity for such connection
185.11is provided; provided, that the authority of a district under this section does not extend
185.12or apply to the construction, maintenance, operation, or use by any person other than the
185.13district of any disposal system or part thereof within the district under and in accordance
185.14with a valid and existing permit issued by the Minnesota Pollution Control Agency.

185.15    Sec. 22. [442A.20] DISTRICT PROGRAMS, SURVEYS, AND STUDIES.
185.16A district may develop general programs and particular projects within the scope of
185.17its powers and purposes and may make all surveys, studies, and investigations necessary
185.18for the programs and projects.

185.19    Sec. 23. [442A.21] GENERAL AND MUNICIPALITY POWERS.
185.20A district may do and perform all other acts and things necessary or proper for the
185.21effectuation of its powers and the accomplishment of its purposes. Without limiting the
185.22effect of the foregoing provision or any other provision of this chapter, a district, with
185.23respect to each and all of said powers and purposes, shall have like powers as are vested
185.24in municipalities with respect to any similar purposes. The exercise of such powers by a
185.25district and all matters pertaining thereto are governed by the law relating to the exercise
185.26of similar powers by municipalities and matters pertaining thereto, so far as applicable,
185.27with like force and effect, except as otherwise provided.

185.28    Sec. 24. [442A.22] ADVISORY COMMITTEE.
185.29A district board of managers may appoint an advisory committee with membership
185.30and duties as the board prescribes.

185.31    Sec. 25. [442A.23] BOARD POWERS.
186.1    Subdivision 1. Generally. The board of managers of every district shall have charge
186.2and control of all the funds, property, and affairs of the district. With respect thereto, the
186.3board has the same powers and duties as are provided by law for a municipality with respect
186.4to similar municipal matters, except as otherwise provided. Except as otherwise provided,
186.5the chair, vice-chair, secretary, and treasurer of the district have the same powers and duties,
186.6respectively, as the mayor, acting mayor, clerk, and treasurer of a municipality. Except as
186.7otherwise provided, the exercise of the powers and the performance of the duties of the
186.8board and officers of the district and all other activities, transactions, and procedures of the
186.9district or any of its officers, agents, or employees, respectively, are governed by the law
186.10relating to similar matters in a municipality, so far as applicable, with like force and effect.
186.11    Subd. 2. Regulation of district. The board may enact ordinances, prescribe
186.12regulations, adopt resolutions, and take other appropriate action relating to any matter
186.13within the powers and purposes of the district and may do and perform all other acts and
186.14things necessary or proper for the effectuation of said powers and the accomplishment
186.15of said purposes. The board may provide that violation of a district ordinance is a penal
186.16offense and may prescribe penalties for violations, not exceeding those prescribed by
186.17law for violation of municipal ordinances.
186.18    Subd. 3. Arrest; prosecution. (a) Violations of district ordinances may be
186.19prosecuted before any court having jurisdiction of misdemeanors. Any peace officer may
186.20make arrests for violations committed anywhere within the district in the same manner as
186.21for violations of city ordinances or for statutory misdemeanors.
186.22(b) All fines collected shall be deposited in the treasury of the district.

186.23    Sec. 26. [442A.24] TAX LEVIES, ASSESSMENTS, AND SERVICE CHARGES.
186.24    Subdivision 1. Tax levies. The board may levy taxes for any district purpose on all
186.25property taxable within the district.
186.26    Subd. 2. Particular area. In the case where a particular area within the district,
186.27but not the entire district, is benefited by a system, works, or facilities of the district,
186.28the board, after holding a public hearing as provided by law for levying assessments on
186.29benefited property, shall by ordinance establish such area as a taxing subdistrict, to be
186.30designated by number, and shall levy special taxes on all the taxable property therein, to be
186.31accounted for separately and used only for the purpose of paying the cost of construction,
186.32improvement, acquisition, maintenance, or operation of such system, works, or facilities,
186.33or paying the principal and interest on bonds issued to provide funds therefor and expenses
186.34incident thereto. The hearing may be held jointly with a hearing for the purpose of levying
186.35assessments on benefited property within the proposed taxing subdistrict.
187.1    Subd. 3. Benefited property. The board shall levy assessments on benefited property
187.2to provide funds for payment of the cost of construction, improvement, or acquisition of
187.3any system, works, or facilities designed or used for any district purpose or for payment of
187.4the principal of and interest on any bonds issued therefor and expenses incident thereto.
187.5    Subd. 4. Service charges. The board shall prescribe service, use, or rental charges
187.6for persons or premises connecting with or making use of any system, works, or facilities
187.7of the district; prescribe the method of payment and collection of the charges; and provide
187.8for the collection thereof for the district by any related governmental subdivision or
187.9other public agency on such terms as may be agreed upon with the governing body or
187.10other authority thereof.

187.11    Sec. 27. [442A.25] BORROWING POWERS; BONDS.
187.12    Subdivision 1. Borrowing power. The board may authorize the borrowing of
187.13money for any district purpose and provide for the repayment thereof, subject to chapter
187.14475. The taxes initially levied by any district according to section 475.61 for the payment
187.15of district bonds, upon property within each municipality included in the district, shall be
187.16included in computing the levy of the municipality.
187.17    Subd. 2. Bond issuance. The board may authorize the issuance of bonds or
187.18obligations of the district to provide funds for the construction, improvement, or
187.19acquisition of any system, works, or facilities for any district purpose or for refunding
187.20any prior bonds or obligations issued for any such purpose and may pledge the full faith
187.21and credit of the district; the proceeds of tax levies or assessments; service, use, or
187.22rental charges; or any combination thereof to the payment of such bonds or obligations
187.23and interest thereon or expenses incident thereto. An election or vote of the people of
187.24the district is required to authorize the issuance of any bonds or obligations. Except as
187.25otherwise provided in this chapter, the forms and procedures for issuing and selling bonds
187.26and provisions for payment thereof must comply with chapter 475.

187.27    Sec. 28. [442A.26] FUNDS; DISTRICT TREASURY.
187.28The proceeds of all tax levies, assessments, service, use, or rental charges, and
187.29other income of the district must be deposited in the district treasury and must be held
187.30and disposed of as the board may direct for district purposes, subject to any pledges or
187.31dedications made by the board for the use of particular funds for the payment of bonds,
187.32interest thereon, or expenses incident thereto or for other specific purposes.

187.33    Sec. 29. [442A.27] EFFECT OF DISTRICT ORDINANCES AND FACILITIES.
188.1In any case where an ordinance is enacted or a regulation adopted by a district
188.2board relating to the same subject matter and applicable in the same area as an existing
188.3ordinance or regulation of a related governmental subdivision for the district, the district
188.4ordinance or regulation, to the extent of its application, supersedes the ordinance or
188.5regulation of the related governmental subdivision. In any case where an area within a
188.6district is served for any district purpose by a system, works, or facilities of the district,
188.7no system, works, or facilities shall be constructed, maintained, or operated for the same
188.8purpose in the same area by any related governmental subdivision or other public agency
188.9except as approved by the district board.

188.10    Sec. 30. [442A.28] APPLICATION.
188.11This chapter does not abridge or supersede any authority of the Minnesota Pollution
188.12Control Agency or the commissioner of health, but is subject and supplementary thereto.
188.13Districts and members of district boards are subject to the authority of the Minnesota
188.14Pollution Control Agency and have no power or authority to abate or control pollution that
188.15is permitted by and in accord with any classification of waters, standards of water quality,
188.16or permit established, fixed, or issued by the Minnesota Pollution Control Agency.

188.17    Sec. 31. [442A.29] CHIEF ADMINISTRATIVE LAW JUDGE'S POWERS.
188.18    Subdivision 1. Alternative dispute resolution. (a) Notwithstanding sections
188.19442A.01 to 442A.28, before assigning a matter to an administrative law judge for hearing,
188.20the chief administrative law judge, upon consultation with affected parties and considering
188.21the procedures and principles established in sections 442A.01 to 442A.28, may require
188.22that disputes over proposed sanitary district creations, attachments, detachments, or
188.23dissolutions be addressed in whole or in part by means of alternative dispute resolution
188.24processes in place of, or in connection with, hearings that would otherwise be required
188.25under sections 442A.01 to 442A.28, including those provided in chapter 14.
188.26(b) In all proceedings, the chief administrative law judge has the authority and
188.27responsibility to conduct hearings and issue final orders related to the hearings under
188.28sections 442A.01 to 442A.28.
188.29    Subd. 2. Cost of proceedings. (a) The parties to any matter directed to alternative
188.30dispute resolution under subdivision 1 must pay the costs of the alternative dispute
188.31resolution process or hearing in the proportions that the parties agree to.
188.32(b) Notwithstanding section 14.53 or other law, the Office of Administrative
188.33Hearings is not liable for the costs.
189.1(c) If the parties do not agree to a division of the costs before the commencement of
189.2mediation, arbitration, or hearing, the costs must be allocated on an equitable basis by
189.3the mediator, arbitrator, or chief administrative law judge.
189.4(d) The chief administrative law judge may contract with the parties to a matter for
189.5the purpose of providing administrative law judges and reporters for an administrative
189.6proceeding or alternative dispute resolution.
189.7(e) The chief administrative law judge shall assess the cost of services rendered by
189.8the Office of Administrative Hearings as provided by section 14.53.
189.9    Subd. 3. Parties. In this section, "party" means:
189.10(1) a property owner, group of property owners, sanitary district, municipality, or
189.11township that files an initiating document or timely objection under this chapter;
189.12(2) the sanitary district, municipality, or township within which the subject area
189.13is located;
189.14(3) a municipality abutting the subject area; and
189.15(4) any other person, group of persons, or governmental agency residing in, owning
189.16property in, or exercising jurisdiction over the subject area that submits a timely request
189.17and is determined by the presiding administrative law judge to have a direct legal interest
189.18that will be affected by the outcome of the proceeding.
189.19    Subd. 4. Effectuation of agreements. Matters resolved or agreed to by the parties
189.20as a result of an alternative dispute resolution process, or otherwise, may be incorporated
189.21into one or more stipulations for purposes of further proceedings according to the
189.22applicable procedures and statutory criteria of this chapter.
189.23    Subd. 5. Limitations on authority. Nothing in this section shall be construed to
189.24permit a sanitary district, municipality, town, or other political subdivision to take, or
189.25agree to take, an action that is not otherwise authorized by this chapter.

189.26    Sec. 32. REPEALER.
189.27Minnesota Statutes 2012, sections 115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, and 10;
189.28115.19; 115.20; 115.21; 115.22; 115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29;
189.29115.30; 115.31; 115.32; 115.33; 115.34; 115.35; 115.36; and 115.37, are repealed.

189.30    Sec. 33. EFFECTIVE DATE.
189.31Unless otherwise provided in this article, sections 1 to 32 are effective August 1, 2013.