1.1.................... moves to amend H.F. No. 976 as follows:
1.2Delete everything after the enacting clause and insert:

1.3"ARTICLE 1

1.4AGRICULTURE APPROPRIATIONS

Section 1. SUMMARY OF APPROPRIATIONS.

1.6The amounts shown in this section summarize direct appropriations, by fund, made
1.7in this article.

		2014		2015		Total
General	$	39,504,000	$	39,646,000	$	79,150,000
Agricultural	$	1,240,000	$	1,240,000	$	2,480,000
Remediation	$	388,000	$	388,000	$	776,000
Total	$	41,132,000	$	41,274,000	$	82,406,000

Sec. 2. AGRICULTURE APPROPRIATIONS.

1.14The sums shown in the columns marked "Appropriations" are appropriated to the
1.15agencies and for the purposes specified in this act. The appropriations are from the general
1.16fund, or another named fund, and are available for the fiscal years indicated for each
1.17purpose. The figures "2014" and "2015" used in this act mean that the appropriations
1.18listed under them are available for the fiscal year ending June 30, 2014, or June 30, 2015,
1.19respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015.
1.20"The biennium" is fiscal years 2014 and 2015.

Sec. 3. DEPARTMENT OF AGRICULTURE.

Subdivision 1.Total Appropriation

33,620,000

33,736,000

Appropriations by Fund
	2014	2015
General	31,992,000	32,102,000
Agricultural	1,240,000	1,240,000
Remediation	388,000	388,000

2.7The amounts that may be spent for each
2.8purpose are specified in the following
2.9subdivisions.

Subd. 2.Protection Services

12,883,000

Appropriations by Fund
General	12,055,000	12,055,000
Agricultural	440,000	440,000
Remediation	388,000	388,000

2.15$388,000 the first year and $388,000 the
2.16second year are from the remediation fund
2.17for administrative funding for the voluntary
2.18cleanup program.
2.19$75,000 the first year and $75,000 the second
2.20year are for compensation for destroyed or
2.21crippled animals under Minnesota Statutes,
2.22section 3.737. If the amount in the first year
2.23is insufficient, the amount in the second year
2.24is available in the first year.
2.25$75,000 the first year and $75,000 the second
2.26year are for compensation for crop damage
2.27under Minnesota Statutes, section 3.7371. If
2.28the amount in the first year is insufficient, the
2.29amount in the second year is available in the
2.30first year.
2.31If the commissioner determines that claims
2.32made under Minnesota Statutes, section
2.333.737 or 3.7371, are unusually high, amounts
2.34appropriated for either program may be
3.1transferred to the appropriation for the other
3.2program.
3.3$225,000 the first year and $225,000 the
3.4second year are for an increase in retail food
3.5handler inspections.
3.6$25,000 the first year and $25,000 the second
3.7year are for training manuals for licensure
3.8related to commercial manure application.
3.9$245,000 the first year and $245,000 the
3.10second year are for an increase in the
3.11operating budget for the laboratory services
3.12division.
3.13The commissioner may spend up to $10,000
3.14of the amount appropriated each year under
3.15this subdivision to administer the agricultural
3.16water quality certification program.
3.17Notwithstanding Minnesota Statutes, section
3.1818B.05, $90,000 the first year and $90,000
3.19the second year are from the pesticide
3.20regulatory account in the agricultural fund
3.21for an increase in the operating budget for
3.22the laboratory services division.
3.23Notwithstanding Minnesota Statutes, section
3.2418B.05, $100,000 the first year and $100,000
3.25the second year are from the pesticide
3.26regulatory account in the agricultural fund to
3.27update and modify applicator education and
3.28training materials. No later than January 15,
3.292015, the commissioner must report to the
3.30legislative committees with jurisdiction over
3.31agriculture finance regarding the agency's
3.32progress and a schedule of activities the
3.33commissioner will accomplish to update and
4.1modify additional materials by December
4.231, 2017.
4.3Notwithstanding Minnesota Statutes, section
4.418B.05, $100,000 the first year and $100,000
4.5the second year are from the pesticide
4.6regulatory account in the agricultural fund to
4.7monitor pesticides and pesticide degradates
4.8in surface water and groundwater in areas
4.9vulnerable to surface water impairments and
4.10groundwater degradation, and to use data
4.11collected to improve pesticide use practices.
4.12This is a onetime appropriation.
4.13Notwithstanding Minnesota Statutes, section
4.1418B.05, $150,000 the first year and $150,000
4.15the second year are from the pesticide
4.16regulatory account in the agricultural fund
4.17for transfer to the commissioner of natural
4.18resources for pollinator habitat restoration
4.19that is visible to the public, along state trails,
4.20located in various parts of the state, and
4.21that includes an appropriate diversity of
4.22native species selected to provide habitat for
4.23pollinators throughout the growing season.
4.24The commissioner of natural resources may
4.25use up to $25,000 each year for pollinator
4.26habitat signage and public awareness. This is
4.27a onetime appropriation.

Subd. 3.Agricultural Marketing and
Development

3,152,000

4.30$186,000 the first year and $186,000 the
4.31second year are for transfer to the Minnesota
4.32grown account and may be used as grants
4.33for Minnesota grown promotion under
4.34Minnesota Statutes, section 17.102. Grants
4.35may be made for one year. Notwithstanding
5.1Minnesota Statutes, section 16A.28, the
5.2appropriations encumbered under contract
5.3on or before June 30, 2015, for Minnesota
5.4grown grants in this paragraph are available
5.5until June 30, 2017.
5.6$190,000 the first year and $190,000 the
5.7second year are for grants to farmers for
5.8demonstration projects involving sustainable
5.9agriculture as authorized in Minnesota
5.10Statutes, section 17.116 and for grants
5.11to small or transitioning farmers. Of the
5.12amount for grants, up to $20,000 may be
5.13used for dissemination of information about
5.14demonstration projects. Notwithstanding
5.15Minnesota Statutes, section 16A.28, the
5.16appropriations encumbered under contract
5.17on or before June 30, 2015, for sustainable
5.18agriculture grants in this paragraph are
5.19available until June 30, 2017.
5.20The commissioner may use funds
5.21appropriated in this subdivision for annual
5.22cost-share payments to resident farmers
5.23or entities that sell, process, or package
5.24agricultural products in this state for the costs
5.25of organic certification. Annual cost-share
5.26payments must be two-thirds of the cost of
5.27the certification or $350, whichever is less.
5.28A certified organic operation is eligible to
5.29receive annual cost-share payments for up to
5.30five years. In any year when federal organic
5.31cost-share program funds are available or
5.32when there is any excess appropriation in
5.33either fiscal year, the commissioner may
5.34allocate these funds for organic market and
5.35program development, including organic
5.36producer education efforts, assistance for
6.1persons transitioning from conventional
6.2to organic agriculture, or sustainable
6.3agriculture demonstration grants authorized
6.4under Minnesota Statutes, section 17.116,
6.5and pertaining to organic research or
6.6demonstration. Any unencumbered balance
6.7does not cancel at the end of the first year
6.8and is available for the second year.
6.9The commissioner may spend up to $25,000
6.10of the amount appropriated each year
6.11under this subdivision for pollinator habitat
6.12education and outreach efforts.

Subd. 4.Bioenergy and Value-Added
Agriculture

10,235,000

6.15$10,235,000 the first year and $10,235,000
6.16the second year are for the agricultural
6.17growth, research, and innovation program
6.18in Minnesota Statutes, section 41A.12.
6.19The commissioner shall consider creating
6.20a competitive grant program for small
6.21renewable energy projects for rural residents.
6.22No later than February 1, 2014 and February
6.231, 2015, the commissioner must report to
6.24the legislative committees with jurisdiction
6.25over agriculture policy and finance regarding
6.26the commissioner's accomplishments and
6.27anticipated accomplishments in the following
6.28areas: developing new markets for Minnesota
6.29farmers by providing more fruits and
6.30vegetables for Minnesota school children;
6.31facilitating the start-up, modernization
6.32or expansion of livestock operations
6.33including beginning and transitioning
6.34livestock operations; facilitating the start-up,
6.35modernization or expansion of other
6.36beginning and transitioning farms; research
7.1on conventional and cover crops; and biofuel
7.2and other renewable energy development
7.3including small renewable energy projects
7.4for rural residents.
7.5The commissioner may use up to 4.5 percent
7.6of this appropriation for costs incurred to
7.7administer the program. Any unencumbered
7.8balance does not cancel at the end of the first
7.9year and is available for the second year.
7.10Notwithstanding Minnesota Statutes, section
7.1116A.28, the appropriations encumbered
7.12under contract on or before June 30, 2015, for
7.13agricultural growth, research, and innovation
7.14grants in this paragraph are available until
7.15June 30, 2017.
7.16Funds in this appropriation may be used
7.17for bioenergy grants. The NextGen
7.18Energy Board, established in Minnesota
7.19Statutes, section 41A.105, shall make
7.20recommendations to the commissioner on
7.21grants for owners of Minnesota facilities
7.22producing bioenergy, organizations that
7.23provide for on-station, on-farm field scale
7.24research and outreach to develop and test
7.25the agronomic and economic requirements
7.26of diverse stands of prairie plants and other
7.27perennials for bioenergy systems or grants
7.28for certain nongovernmental entities. For
7.29the purposes of this paragraph, "bioenergy"
7.30includes transportation fuels derived from
7.31cellulosic material, as well as the generation
7.32of energy for commercial heat, industrial
7.33process heat, or electrical power from
7.34cellulosic materials via gasification or
7.35other processes. Grants are limited to 50
7.36percent of the cost of research, technical
8.1assistance, or equipment related to bioenergy
8.2production or $500,000, whichever is less.
8.3Grants to nongovernmental entities for the
8.4development of business plans and structures
8.5related to community ownership of eligible
8.6bioenergy facilities together may not exceed
8.7$150,000. The board shall make a good-faith
8.8effort to select projects that have merit, and,
8.9when taken together, represent a variety of
8.10bioenergy technologies, biomass feedstocks,
8.11and geographic regions of the state. Projects
8.12must have a qualified engineer provide
8.13certification on the technology and fuel
8.14source. Grantees must provide reports at
8.15the request of the commissioner. No later
8.16than February 1, 2014 and February 1,
8.172015, the commissioner shall report on the
8.18projects funded under this appropriation to
8.19the legislative committees with jurisdiction
8.20over agriculture policy and finance.

Subd. 5.Administration and Financial
Assistance

7,350,000

7,460,000

Appropriations by Fund
	2014	2015
General	6,550,000	6,660,000
Agricultural	800,000	800,000

8.27$634,000 the first year and $634,000 the
8.28second year are for continuation of the dairy
8.29development and profitability enhancement
8.30and dairy business planning grant programs
8.31established under Laws 1997, chapter
8.32216, section 7, subdivision 2, and Laws
8.332001, First Special Session chapter 2,
8.34section 9, subdivision 2. The commissioner
8.35may allocate the available sums among
8.36permissible activities, including efforts to
9.1improve the quality of milk produced in the
9.2state in the proportions that the commissioner
9.3deems most beneficial to Minnesota's
9.4dairy farmers. The commissioner must
9.5submit a detailed accomplishment report
9.6and a work plan detailing future plans for,
9.7and anticipated accomplishments from,
9.8expenditures under this program to the
9.9chairs and ranking minority members of the
9.10legislative committees with jurisdiction over
9.11agricultural policy and finance on or before
9.12the start of each fiscal year. If significant
9.13changes are made to the plans in the course
9.14of the year, the commissioner must notify the
9.15chairs and ranking minority members.
9.16$47,000 the first year and $47,000 the second
9.17year are for the Northern Crops Institute.
9.18These appropriations may be spent to
9.19purchase equipment.
9.20$18,000 the first year and $18,000 the
9.21second year are for a grant to the Minnesota
9.22Livestock Breeders Association.
9.23$235,000 the first year and $235,000 the
9.24second year are for grants to the Minnesota
9.25Agricultural Education and Leadership
9.26Council for programs of the council under
9.27Minnesota Statutes, chapter 41D.
9.28$474,000 the first year and $474,000 the
9.29second year are for payments to county and
9.30district agricultural societies and associations
9.31under Minnesota Statutes, section 38.02,
9.32subdivision 1. Aid payments to county and
9.33district agricultural societies and associations
9.34shall be disbursed no later than July 15 of
9.35each year. These payments are the amount of
10.1aid from the state for an annual fair held in
10.2the previous calendar year.
10.3$1,000 the first year and $1,000 the second
10.4year are for grants to the Minnesota State
10.5Poultry Association.
10.6$108,000 the first year and $108,000 the
10.7second year are for annual grants to the
10.8Minnesota Turf Seed Council for basic
10.9and applied research on: (1) the improved
10.10production of forage and turf seed related to
10.11new and improved varieties; and (2) native
10.12plants, including plant breeding, nutrient
10.13management, pest management, disease
10.14management, yield, and viability. The grant
10.15recipient may subcontract with a qualified
10.16third party for some or all of the basic or
10.17applied research.
10.18$500,000 the first year and $500,000 the
10.19second year are for grants to Second Harvest
10.20Heartland on behalf of Minnesota's six
10.21Second Harvest food banks for the purchase
10.22of milk for distribution to Minnesota's food
10.23shelves and other charitable organizations
10.24that are eligible to receive food from the food
10.25banks. Milk purchased under the grants must
10.26be acquired from Minnesota milk processors
10.27and based on low-cost bids. The milk must be
10.28allocated to each Second Harvest food bank
10.29serving Minnesota according to the formula
10.30used in the distribution of United States
10.31Department of Agriculture commodities
10.32under The Emergency Food Assistance
10.33Program (TEFAP). Second Harvest
10.34Heartland must submit quarterly reports
10.35to the commissioner on forms prescribed
11.1by the commissioner. The reports must
11.2include, but are not limited to, information
11.3on the expenditure of funds, the amount
11.4of milk purchased, and the organizations
11.5to which the milk was distributed. Second
11.6Harvest Heartland may enter into contracts
11.7or agreements with food banks for shared
11.8funding or reimbursement of the direct
11.9purchase of milk. Each food bank receiving
11.10money from this appropriation may use up to
11.11two percent of the grant for administrative
11.12expenses.
11.13$94,000 the first year and $94,000 the
11.14second year are for transfer to the Board of
11.15Trustees of the Minnesota State Colleges
11.16and Universities for statewide mental health
11.17counseling support to farm families and
11.18business operators through farm business
11.19management programs at Central Lakes
11.20College and Ridgewater College.
11.21$17,000 the first year and $17,000 the
11.22second year are for grants to the Minnesota
11.23Horticultural Society.
11.24Notwithstanding Minnesota Statutes,
11.25section 18C.131, $800,000 the first year
11.26and $800,000 the second year are from the
11.27fertilizer account in the agricultural fund
11.28for grants for fertilizer research as awarded
11.29by the Minnesota Agricultural Fertilizer
11.30Research and Education Council under
11.31Minnesota Statutes, section 18C.71. The
11.32amount appropriated in either fiscal year
11.33must not exceed 57 percent of the inspection
11.34fee revenue collected under Minnesota
11.35Statutes, section 18C.425, subdivision 6,
12.1during the previous fiscal year. No later
12.2than February 1, 2015, the commissioner
12.3shall report to the legislative committees
12.4with jurisdiction over agriculture finance.
12.5The report must include the progress and
12.6outcome of funded projects as well as the
12.7sentiment of the council concerning the need
12.8for additional research funds.

Sec. 4. BOARD OF ANIMAL HEALTH

4,869,000

4,901,000

Sec. 5. AGRICULTURAL UTILIZATION
RESEARCH INSTITUTE

2,643,000

12.12Money in this appropriation is available for
12.13technical assistance and technology transfer
12.14to bioenergy crop producers and users.

12.15ARTICLE 2

12.16AGRICULTURE POLICY

12.17    Section 1. Minnesota Statutes 2012, section 17.03, subdivision 3, is amended to read:
12.18    Subd. 3. Cooperation with federal agencies. (a) The commissioner shall cooperate
12.19with the government of the United States, with financial agencies created to assist in the
12.20development of the agricultural resources of this state, and so far as practicable may use
12.21the facilities provided by the existing state departments and the various state and local
12.22organizations. This subdivision is intended to relate to every function and duty which
12.23devolves upon the commissioner.
12.24    (b) The commissioner may apply for, receive, and disburse federal funds made
12.25available to the state by federal law or regulation for any purpose related to the powers and
12.26duties of the commissioner. All money received by the commissioner under this paragraph
12.27shall be deposited in the state treasury and is appropriated to the commissioner for the
12.28purposes for which it was received. Money made available under this paragraph may
12.29be paid pursuant to applicable federal regulations and rate structures. Money received
12.30under this paragraph does not cancel and is available for expenditure according to federal
12.31law. The commissioner may contract with and enter into grant agreements with persons,
12.32organizations, educational institutions, firms, corporations, other state agencies, and any
12.33agency or instrumentality of the federal government to carry out agreements made with
13.1the federal government relating to the expenditure of money under this paragraph. Bid
13.2requirements under chapter 16C do not apply to contracts under this paragraph.

13.3    Sec. 2. Minnesota Statutes 2012, section 17.1015, is amended to read:
13.417.1015 PROMOTIONAL EXPENDITURES.
13.5In order to accomplish the purposes of section 17.101, the commissioner may
13.6participate jointly with private persons in appropriate programs and projects and may enter
13.7into contracts to carry out those programs and projects. The contracts may not include
13.8the acquisition of land or buildings and are not subject to the provisions of chapter 16C
13.9relating to competitive bidding.
13.10The commissioner may spend money appropriated for the purposes of section
13.1117.101 in the same manner as private persons, firms, corporations, and associations make
13.12expenditures for these purposes, and expenditures made pursuant to section 17.101 for
13.13food, lodging, or travel are not governed by the travel rules of the commissioner of
13.14management and budget.

13.15    Sec. 3. Minnesota Statutes 2012, section 17.118, subdivision 2, is amended to read:
13.16    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this
13.17subdivision have the meanings given them.
13.18    (b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed
13.19cervidae, ratitae, bison, sheep, horses, and llamas.
13.20    (c) "Qualifying expenditures" means the amount spent for:
13.21    (1) the acquisition, construction, or improvement of buildings or facilities for the
13.22production of livestock or livestock products;
13.23    (2) the development of pasture for use by livestock including, but not limited to, the
13.24acquisition, development, or improvement of:
13.25    (i) lanes used by livestock that connect pastures to a central location;
13.26    (ii) watering systems for livestock on pasture including water lines, booster pumps,
13.27and well installations;
13.28    (iii) livestock stream crossing stabilization; and
13.29    (iv) fences; or
13.30    (3) the acquisition of equipment for livestock housing, confinement, feeding, and
13.31waste management including, but not limited to, the following:
13.32    (i) freestall barns;
13.33    (ii) watering facilities;
13.34    (iii) feed storage and handling equipment;
14.1    (iv) milking parlors;
14.2    (v) robotic equipment;
14.3    (vi) scales;
14.4    (vii) milk storage and cooling facilities;
14.5    (viii) bulk tanks;
14.6    (ix) computer hardware and software and associated equipment used to monitor
14.7the productivity and feeding of livestock;
14.8    (x) manure pumping and storage facilities;
14.9    (xi) swine farrowing facilities;
14.10    (xii) swine and cattle finishing barns;
14.11    (xiii) calving facilities;
14.12    (xiv) digesters;
14.13    (xv) equipment used to produce energy;
14.14    (xvi) on-farm processing facilities equipment;
14.15    (xvii) fences; and
14.16    (xviii) livestock pens and corrals and sorting, restraining, and loading chutes.
14.17    Except for qualifying pasture development expenditures under clause (2), qualifying
14.18expenditures only include amounts that are allowed to be capitalized and deducted under
14.19either section 167 or 179 of the Internal Revenue Code in computing federal taxable
14.20income. Qualifying expenditures do not include an amount paid to refinance existing debt.
14.21    ~~(d) "Qualifying period" means, for a grant awarded during a fiscal year, that full~~
14.22~~calendar year of which the first six months precede the first day of the current fiscal year. For~~
14.23~~example, an eligible person who makes qualifying expenditures during calendar year 2008~~
14.24~~is eligible to receive a livestock investment grant between July 1, 2008, and June 30, 2009.~~

14.25    Sec. 4. [17.9891] PURPOSE.
14.26The commissioner, in consultation with the commissioners of pollution control and
14.27natural resources and the Board of Water and Soil Resources, may implement a Minnesota
14.28agricultural water quality certification program whereby a producer who demonstrates
14.29practices and management sufficient to protect water quality is certified for up to ten years
14.30and presumed to be contributing the producer's share of any targeted reduction of water
14.31pollutants during the certification period. The program is voluntary. The program will first
14.32be piloted in selected watersheds across the state, until such time as the commissioner, in
14.33consultation with the commissioners of pollution control and natural resources and the
14.34Board of Water and Soil Resources, determines the program is ready for expansion.

15.1    Sec. 5. [17.9892] DEFINITIONS.
15.2    Subdivision 1. Application. The definitions in this section apply to sections
15.317.9891 to 17.993.
15.4    Subd. 2. Technical assistance. "Technical assistance" means professional, advisory,
15.5or cost-share assistance provided to individuals in order to achieve certification.
15.6    Subd. 3. Certifying agent. "Certifying agent" means a person who is authorized
15.7by the commissioner to assess producers to determine whether a producer satisfies the
15.8standards of the program.
15.9    Subd. 4. Certification. "Certification" means a producer has demonstrated
15.10compliance with all applicable environmental rules and statutes for all of the producer's
15.11owned and rented agricultural land, and has achieved a satisfactory score through the
15.12certification instrument as verified by a certifying agent.
15.13    Subd. 5. Eligible land. "Eligible land" means all acres of a producer's agricultural
15.14operation, whether contiguous or not, that are under the effective control of the producer
15.15at the time the producer enters into the program, and that the producer operates with
15.16equipment, labor, and management.
15.17    Subd. 6. Effective control. "Effective control" means possession of land by
15.18ownership, written lease, or other legal agreement and authority to act as decision
15.19maker for the day-to-day management of the operation at the time the producer achieves
15.20certification and for the required certification period.
15.21    Subd. 7. Program. "Program" means the Minnesota agricultural water quality
15.22certification program.

15.23    Sec. 6. [17.9893] CERTIFICATION INSTRUMENT.
15.24The commissioner, in consultation with the commissioners of pollution control
15.25and natural resources and the Board of Water and Soil Resources, shall develop an
15.26analytical instrument to assess the water quality practices and management of agricultural
15.27operations. This instrument shall be used to certify that the water quality practices and
15.28management of an agricultural operation are consistent with state water quality goals and
15.29standards. The commissioner shall define a satisfactory score for certification purposes.
15.30The certification instrument tool shall:
15.31(1) integrate applicable existing regulatory requirements;
15.32(2) utilize technology and prioritize ease of use;
15.33(3) utilize a water quality index or score applicable to the landscape;
15.34(4) incorporate a process for updates and revisions as practices, management, and
15.35technology changes become established and approved; and
16.1(5) comprehensively address water quality impacts.

16.2    Sec. 7. [17.9894] CERTIFYING AGENT LICENSE.
16.3    Subdivision 1. License. A person who offers certification services to producers
16.4as part of the program must satisfy all criteria in subdivision 2 and be licensed by the
16.5commissioner. A certifying agent is ineligible to provide certification services to any
16.6producer to whom the certifying agent has also provided technical assistance. The
16.7commissioner may set license fees.
16.8    Subd. 2. Certifying agent requirements. In order to be licensed as a certifying
16.9agent, a person must:
16.10(1) be an agricultural conservation professional employed by the state of Minnesota,
16.11a Soil and Water Conservation District, or the Natural Resources Conservation Service, or a
16.12Minnesota certified crop advisor as recognized by the American Society of Agronomy; and
16.13(2) have passed a comprehensive exam, as set by the commissioner, evaluating
16.14knowledge of water quality, soil health, best farm management techniques, and the
16.15certification instrument; and
16.16(3) maintain continuing education requirements as set by the commissioner.

16.17    Sec. 8. [17.9895] DUTIES OF A CERTIFYING AGENT.
16.18    Subdivision 1. Duties. A certifying agent shall conduct a formal certification
16.19assessment utilizing the certification instrument to determine whether a producer meets
16.20program criteria. If a producer satisfies all requirements, the certifying agent shall notify
16.21the commissioner of the producer's eligibility and request that the commissioner issue a
16.22certificate. All records and documents used in the assessment shall be compiled by the
16.23certifying agent and submitted to the commissioner.
16.24    Subd. 2. Violations. (a) In the event a certifying agent violates any provision of
16.25sections 17.9891 to 17.993 or an order of the commissioner, the commissioner may issue a
16.26written warning or a correction order and may suspend or revoke a license.
16.27(b) If the commissioner suspends or revokes a license, the certifying agent has ten
16.28days from the date of suspension or revocation to appeal. If a certifying agent appeals, the
16.29commissioner shall hold an administrative hearing within 30 days of the suspension or
16.30revocation of the license, or longer by agreement of the parties, to determine whether the
16.31license is revoked or suspended. The commissioner shall issue an opinion within 30 days.
16.32If a person notifies the commissioner that the person intends to contest the commissioner's
16.33opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with
16.34the applicable provisions of chapter 14 for hearings in contested cases.

17.1    Sec. 9. [17.9896] CERTIFICATION PROCEDURES.
17.2    Subdivision 1, Producer duties. A producer who seeks certification of eligible land
17.3shall conduct an initial assessment using the certification instrument, obtain technical
17.4assistance if necessary to achieve a satisfactory score on the certification instrument, and
17.5apply for certification from a licensed certifying agent.
17.6    Subd. 2. Additional land. Once certified, if a producer obtains effective control
17.7of additional agricultural land, the producer must notify a certifying agent and obtain
17.8certification of the additional land within one year in order to retain the producer's original
17.9certification.
17.10    Subd. 3. Violations. (a) The commissioner may revoke a certification if the
17.11producer fails to obtain certification on any additional land for which the producer obtains
17.12effective control.
17.13(b) The commissioner may revoke a certification and seek reimbursement of any
17.14monetary benefit a producer may have received due to certification from a producer who
17.15fails to maintain certification criteria.
17.16(c) If the commissioner revokes a certification, the producer has ten days from the
17.17date of suspension or revocation to appeal. If a producer appeals, the commissioner shall
17.18hold an administrative hearing within 30 days of the suspension or revocation of the
17.19certification, or longer by agreement of the parties, to determine whether the certification
17.20is revoked or suspended. The commissioner shall issue an opinion within 30 days. If the
17.21producer notifies the commissioner that the producer intends to contest the commissioner's
17.22opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with
17.23the applicable provisions of chapter 14 for hearings in contested cases.

17.24    Sec. 10. [17.9897] CERTIFICATION CERTAINTY.
17.25(a) Once a producer is certified, the producer:
17.26(1) will retain certification for up to ten years from the date of certification if the
17.27producer complies with the certification agreement even if the producer does not comply
17.28with new state water protection laws or rules that take effect during the certification period;
17.29(2) is presumed to be meeting the producer's contribution to any targeted reduction
17.30of pollutants during the certification period;
17.31(3) is required to continue implementation of practices that maintain the producer's
17.32certification; and
17.33(4) is required to retain all records pertaining to certification.
17.34(b) Paragraph (a) does not preclude enforcement of a local rule or ordinance by a
17.35local unit of government.

18.1    Sec. 11. [17.9898] AUDITS.
18.2The commissioner shall perform random audits of producers and certifying agents to
18.3ensure compliance with the program. All producers and certifying agents shall cooperate
18.4with the commissioner during these audits, and provide all relevant documents to the
18.5commissioner for inspection and copying. Any delay, obstruction, or refusal to cooperate
18.6with the commissioner's audit, or falsification of or failure to provide required data or
18.7information, is a violation subject to the provisions of section 17.9895, subdivision 2, or
18.817.9896, subdivision 3.

18.9    Sec. 12. [17.9899] DATA.
18.10All data collected under the program that identifies a producer or a producer's
18.11location shall be considered nonpublic data as defined in section 13.02, subdivision 9, or
18.12private data on individuals as defined in section 13.02, subdivision 12. The commissioner
18.13shall make available summary data of program outcomes on data classified as private
18.14or nonpublic under this section.

18.15    Sec. 13. [17.991] RULEMAKING.
18.16The commissioner may develop rules to implement the program.

18.17    Sec. 14. [17.992] REPORTS.
18.18The commissioner, in consultation with the commissioners of pollution control and
18.19natural resources and the Board of Water and Soil Resources, shall issue a biennial report
18.20to the chairs and ranking minority members of the legislative committees with jurisdiction
18.21over agricultural policy on the status of the program.

18.22    Sec. 15. [17.993] FINANCIAL ASSISTANCE.
18.23The commissioner may use contributions from gifts or other state accounts, provided
18.24that the purpose of the expenditure is consistent with the purpose of the accounts, for
18.25grants, loans, or other financial assistance.

18.26    Sec. 16. Minnesota Statutes 2012, section 18.77, subdivision 3, is amended to read:
18.27    Subd. 3. Control. "Control" means to ~~destroy all or part of the aboveground~~
18.28~~growth of noxious weeds~~ manage or prevent the maturation and spread of propagating
18.29parts of noxious weeds from one area to another by a lawful method that does not cause
18.30unreasonable adverse effects on the environment as defined in section 18B.01, subdivision
19.131 ~~, and prevents the maturation and spread of noxious weed propagating parts from one~~
19.2~~area to another~~.

19.3    Sec. 17. Minnesota Statutes 2012, section 18.77, subdivision 4, is amended to read:
19.4    Subd. 4. Eradicate. "Eradicate" means to destroy the aboveground ~~growth and the~~
19.5~~roots~~ and belowground plant parts of noxious weeds by a lawful method ~~that~~ which prevents
19.6the maturation and spread of noxious weed propagating parts from one area to another.

19.7    Sec. 18. Minnesota Statutes 2012, section 18.77, subdivision 10, is amended to read:
19.8    Subd. 10. Permanent pasture, hay meadow, woodlot, ~~and~~ or other noncrop
19.9area. "Permanent pasture, hay meadow, woodlot, ~~and~~ or other noncrop area" means an
19.10area of predominantly native or seeded perennial plants that can be used for grazing or hay
19.11purposes but is not harvested on a regular basis and is not considered to be a growing crop.

19.12    Sec. 19. Minnesota Statutes 2012, section 18.77, subdivision 12, is amended to read:
19.13    Subd. 12. Propagating parts. "Propagating parts" means all plant parts, including
19.14seeds, that are capable of producing new plants.

19.15    Sec. 20. [18.771] NOXIOUS WEED CATEGORIES.
19.16(a) For purposes of this section, noxious weed category includes each of the
19.17following categories.
19.18(b) "Prohibited noxious weed" includes noxious weeds that must be controlled or
19.19eradicated on all lands within the state. Transportation of a prohibited noxious weed's
19.20propagating parts shall be restricted by permit except as allowed by section 18.82.
19.21Prohibited noxious weeds cannot be sold or propagated in Minnesota. There are two
19.22regulatory listings for prohibited noxious weeds in Minnesota:
19.23(1) The "Noxious Weed Eradicate List" is established. Prohibited noxious weeds
19.24placed on the Noxious Weed Eradicate List are plants that are not currently known to be
19.25present in Minnesota or are not widely established. These species must be eradicated.
19.26(2) The "Noxious Weed Control List" is established. Prohibited noxious weeds
19.27placed on the Noxious Weed Control List are plants that are already established throughout
19.28Minnesota or regions of the state. Species on this list must at least be controlled.
19.29(c) "Restricted noxious weeds" includes noxious weeds that are widely distributed
19.30in Minnesota, but whose only feasible means of control is to prevent their spread by
19.31prohibiting the importation, sale, and transportation of their propagating parts in the state
19.32except as allowed by section 18.82.
20.1(d) "Specially regulated plants" includes noxious weeds that may be native
20.2species or have demonstrated economic value, but also have the potential to cause harm
20.3in noncontrolled environments. Plants designated as specially regulated have been
20.4determined to pose ecological, economical, or human or animal health concerns. Species
20.5specific management plans or rules that define the use and management requirements
20.6for these plants must be developed by the commissioner of agriculture for each plant
20.7designated as specially regulated. The commissioner must also take measures to minimize
20.8the potential for harm caused by these plants.
20.9(e) "County noxious weeds" includes noxious weeds that are designated by
20.10individual county boards to be enforced as prohibited noxious weeds within the county's
20.11jurisdiction and must be approved by the commissioner of agriculture, in consultation with
20.12the Noxious Weed Advisory Committee. Each county board must submit newly proposed
20.13county noxious weeds to the commissioner of agriculture for review. Approved county
20.14noxious weeds shall also be posted with the county's general weed notice prior to May 15
20.15each year. Counties are solely responsible for developing county noxious weed lists and
20.16their enforcement.

20.17    Sec. 21. Minnesota Statutes 2012, section 18.78, subdivision 3, is amended to read:
20.18    Subd. 3. ~~Cooperative~~ Weed control agreement. The commissioner, municipality,
20.19or county agricultural inspector or county-designated employee may enter into a
20.20~~cooperative~~ weed control agreement with a landowner or weed management area
20.21group to establish a mutually agreed-upon noxious weed management plan for up to
20.22three years duration, whereby a noxious weed problem will be controlled without
20.23additional enforcement action. If a property owner fails to comply with the noxious weed
20.24management plan, an individual notice may be served.

20.25    Sec. 22. Minnesota Statutes 2012, section 18.79, subdivision 6, is amended to read:
20.26    Subd. 6. Training for control or eradication of noxious weeds. The commissioner
20.27shall conduct initial training considered necessary for inspectors and county-designated
20.28employees in the enforcement of the Minnesota Noxious Weed Law. The director of
20.29~~the~~University of Minnesota Extension ~~Service~~ may conduct educational programs for the
20.30general public that will aid compliance with the Minnesota Noxious Weed Law. Upon
20.31request, the commissioner may provide information and other technical assistance to the
20.32county agricultural inspector or county-designated employee to aid in the performance of
20.33responsibilities specified by the county board under section 18.81, subdivisions 1a and 1b.

21.1    Sec. 23. Minnesota Statutes 2012, section 18.79, subdivision 13, is amended to read:
21.2    Subd. 13. Noxious weed designation. The commissioner, in consultation with the
21.3Noxious Weed Advisory Committee, shall determine which plants are noxious weeds
21.4subject to ~~control~~ regulation under sections 18.76 to 18.91. The commissioner shall
21.5prepare, publish, and revise as necessary, but at least once every three years, a list of
21.6noxious weeds and their designated classification. The list must be distributed to the public
21.7by the commissioner who may request the help of ~~the~~ University of Minnesota Extension,
21.8the county agricultural inspectors, and any other organization the commissioner considers
21.9appropriate to assist in the distribution. The commissioner may, in consultation with
21.10the Noxious Weed Advisory Committee, accept and consider noxious weed designation
21.11petitions from Minnesota citizens or Minnesota organizations or associations.

21.12    Sec. 24. Minnesota Statutes 2012, section 18.82, subdivision 1, is amended to read:
21.13    Subdivision 1. Permits. Except as provided in section 21.74, if a person wants to
21.14transport along a public highway materials or equipment containing the propagating parts of
21.15weeds designated as noxious by the commissioner, the person must secure a written permit
21.16for transportation of the material or equipment from an inspector or county-designated
21.17employee. Inspectors or county-designated employees may issue permits to persons
21.18residing or operating within their jurisdiction. ~~If the noxious weed propagating parts are~~
21.19~~removed from materials and equipment or devitalized before being transported, a permit is~~
21.20~~not needed~~ A permit is not required for the transport of noxious weeds for the purpose
21.21of destroying propagating parts at a Department of Agriculture-approved disposal site.
21.22Anyone transporting noxious weed propagating parts for this purpose shall ensure that all
21.23materials are contained in a manner that prevents escape during transport.

21.24    Sec. 25. Minnesota Statutes 2012, section 18.91, subdivision 1, is amended to read:
21.25    Subdivision 1. Duties. The commissioner shall consult with the Noxious Weed
21.26Advisory Committee to advise the commissioner concerning responsibilities under
21.27the noxious weed control program. The committee shall ~~also~~ evaluate species for
21.28invasiveness, difficulty of control, cost of control, benefits, and amount of injury caused
21.29by them. For each species evaluated, the committee shall recommend to the commissioner
21.30on which noxious weed list or lists, if any, the species should be placed. Species ~~currently~~
21.31 designated as prohibited or restricted noxious weeds or specially regulated plants must
21.32be reevaluated every three years for a recommendation on whether or not they need to
21.33remain on the noxious weed lists. The committee shall also advise the commissioner on
21.34the implementation of the Minnesota Noxious Weed Law and assist the commissioner in
22.1the development of management criteria for each noxious weed category. Members of
22.2the committee are not entitled to reimbursement of expenses nor payment of per diem.
22.3Members shall serve two-year terms with subsequent reappointment by the commissioner.

22.4    Sec. 26. Minnesota Statutes 2012, section 18.91, subdivision 2, is amended to read:
22.5    Subd. 2. Membership. The commissioner shall appoint members, which shall
22.6include representatives from the following:
22.7(1) horticultural science, agronomy, and forestry at the University of Minnesota;
22.8(2) the nursery and landscape industry in Minnesota;
22.9(3) the seed industry in Minnesota;
22.10(4) the Department of Agriculture;
22.11(5) the Department of Natural Resources;
22.12(6) a conservation organization;
22.13(7) an environmental organization;
22.14(8) at least two farm organizations;
22.15(9) the county agricultural inspectors;
22.16(10) city, township, and county governments;
22.17(11) the Department of Transportation;
22.18(12) ~~the~~ University of Minnesota Extension;
22.19(13) the timber and forestry industry in Minnesota;
22.20(14) the Board of Water and Soil Resources; ~~and~~
22.21(15) soil and water conservation districts.;
22.22(16) Minnesota Association of County Land Commissioners; and
22.23(17) members as needed.

22.24    Sec. 27. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
22.25to read:
22.26    Subd. 4a. Bulk pesticide storage facility. "Bulk pesticide storage facility" means a
22.27facility that is required to have a permit under section 18B.14.

22.28    Sec. 28. Minnesota Statutes 2012, section 18B.065, subdivision 2a, is amended to read:
22.29    Subd. 2a. Disposal site requirement. (a) For agricultural waste pesticides, the
22.30commissioner must designate a place in each county of the state that is available at least
22.31every other year for persons to dispose of unused portions of agricultural pesticides. The
22.32commissioner shall consult with the person responsible for solid waste management
22.33and disposal in each county to determine an appropriate location and to advertise each
23.1collection event. The commissioner may provide a collection opportunity in a county
23.2more frequently if the commissioner determines that a collection is warranted.
23.3    (b) For nonagricultural waste pesticides, the commissioner must provide a disposal
23.4opportunity each year in each county or enter into a contract with a group of counties
23.5under a joint powers agreement or contract for household hazardous waste disposal.
23.6(c) As provided under subdivision 7, the commissioner may enter into cooperative
23.7agreements with local units of government to provide the collections required under
23.8paragraph (a) or (b) and shall provide a local unit of government, as part of the cooperative
23.9agreement, with funding for reasonable costs incurred including, but not limited to, related
23.10supplies, transportation, advertising, and disposal costs as well as reasonable overhead
23.11costs.
23.12    (d) A person who collects waste pesticide under this section shall, on a form
23.13provided or in a method approved by the commissioner, record information on each
23.14waste pesticide product collected including, but not limited to, the quantity collected
23.15and either the product name and its active ingredient or ingredients or the United States
23.16Environmental Protection Agency registration number. The person must submit this
23.17information to the commissioner at least annually by January 30.
23.18    (e) Notwithstanding the recording and reporting requirements of paragraph (d),
23.19persons are not required to record or report agricultural or nonagricultural waste pesticide
23.20collected in the remainder of 2013, 2014, and 2015. The commissioner shall analyze
23.21existing collection data to identify trends that will inform future collection strategies to
23.22better meet the needs and nature of current waste pesticide streams. By January 15, 2015,
23.23the commissioner shall report analysis, recommendations, and proposed policy changes to
23.24this program to legislative committees with jurisdiction over agriculture finance and policy.
23.25EFFECTIVE DATE.This section is effective the day following final enactment
23.26and applies to waste pesticide collected on or after that date through the end of 2015.

23.27    Sec. 29. Minnesota Statutes 2012, section 18B.07, subdivision 4, is amended to read:
23.28    Subd. 4. Pesticide storage safeguards ~~at application sites~~. A person may not
23.29allow a pesticide, rinsate, or unrinsed pesticide container to be stored, kept, or to remain in
23.30or on any site without safeguards adequate to prevent an incident. Pesticides may not be
23.31stored in any location with an open drain.

23.32    Sec. 30. Minnesota Statutes 2012, section 18B.07, subdivision 5, is amended to read:
23.33    Subd. 5. Use of ~~public~~ water supplies for filling application equipment. (a) A
23.34person may not fill pesticide application equipment directly from a public water supply,
24.1as defined in section 144.382, or from public waters, as defined in section 103G.005,
24.2subdivision 15, unless the outlet from the ~~public~~ water supply is equipped with a backflow
24.3prevention device that complies with and is installed in accordance with the Minnesota
24.4Plumbing Code under Minnesota Rules, parts 4715.2000 to 4715.2280. A nurse tank not
24.5connected to the water supply, an atmospheric vacuum breaker, and air gap that is 2.0 times
24.6the effective diameter of the outlet, a pressurized vacuum breaker, or a reduced pressure
24.7principle backflow prevention device must also comply with the requirements under the
24.8Minnesota Plumbing Code under Minnesota Rules, parts 4715.2000 to 4715.2280.
24.9(b) Cross connections between a water supply used for filling pesticide application
24.10equipment are prohibited.
24.11(c) This subdivision does not apply to permitted applications of aquatic pesticides to
24.12public waters.

24.13    Sec. 31. Minnesota Statutes 2012, section 18B.07, subdivision 7, is amended to read:
24.14    Subd. 7. ~~Cleaning equipment in or near surface water~~ Pesticide handling
24.15restrictions. (a) A person may not: fill or clean pesticide application equipment where
24.16pesticides or materials contaminated with pesticides could enter ditches, surface water,
24.17groundwater, wells, drains, or sewers. For wells, the setbacks established in Minnesota
24.18Rules, part 4725.4450, apply.
24.19~~(1) clean pesticide application equipment in surface waters of the state; or~~
24.20~~(2) fill or clean pesticide application equipment adjacent to surface waters,~~
24.21~~ditches, or wells where, because of the slope or other conditions, pesticides or materials~~
24.22~~contaminated with pesticides could enter or contaminate the surface waters, groundwater,~~
24.23~~or wells, as a result of overflow, leakage, or other causes.~~
24.24(b) This subdivision does not apply to permitted application of aquatic pesticides to
24.25public waters.

24.26    Sec. 32. Minnesota Statutes 2012, section 18B.26, subdivision 3, is amended to read:
24.27    Subd. 3. Registration application and gross sales fee. (a) For an agricultural
24.28pesticide, a registrant shall pay an annual registration application fee for each agricultural
24.29pesticide of $350. The fee is due by December 31 preceding the year for which the
24.30application for registration is made. The fee is nonrefundable.
24.31(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual
24.32registration application fee for each nonagricultural pesticide of $350. The fee is due by
24.33December 31 preceding the year for which the application for registration is made. The
24.34fee is nonrefundable. The registrant of a nonagricultural pesticide shall pay, in addition to
25.1the $350 minimum fee, a fee of 0.5 percent of annual gross sales of the nonagricultural
25.2pesticide in the state and the annual gross sales of the nonagricultural pesticide sold into
25.3the state for use in this state. ~~The commissioner may not assess a fee under this paragraph~~
25.4~~if the amount due based on percent of annual gross sales is less than $10~~ No fee is required
25.5if the fee due amount based on percent of annual gross sales of a nonagricultural pesticide
25.6is less than $10. The registrant shall secure sufficient sales information of nonagricultural
25.7pesticides distributed into this state from distributors and dealers, regardless of distributor
25.8location, to make a determination. Sales of nonagricultural pesticides in this state and
25.9sales of nonagricultural pesticides for use in this state by out-of-state distributors are not
25.10exempt and must be included in the registrant's annual report, as required under paragraph
25.11(g), and fees shall be paid by the registrant based upon those reported sales. Sales of
25.12nonagricultural pesticides in the state for use outside of the state are exempt from the
25.13gross sales fee in this paragraph if the registrant properly documents the sale location and
25.14distributors. A registrant paying more than the minimum fee shall pay the balance due by
25.15March 1 based on the gross sales of the nonagricultural pesticide by the registrant for the
25.16preceding calendar year. A pesticide determined by the commissioner to be a sanitizer or
25.17disinfectant is exempt from the gross sales fee.
25.18(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed
25.19pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the
25.20agricultural pesticide in the state and the annual gross sales of the agricultural pesticide
25.21sold into the state for use in this state.
25.22(d) In those cases where a registrant first sells an agricultural pesticide in or into the
25.23state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer
25.24license and is responsible for payment of the annual gross sales fee under paragraph (c),
25.25record keeping under paragraph (i), and all other requirements of section 18B.316.
25.26(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013,
25.27by the commissioner on the registration and sale of pesticides is less than $6,600,000, the
25.28commissioner, after a public hearing, may increase proportionally the pesticide sales and
25.29product registration fees under this chapter by the amount necessary to ensure this level
25.30of revenue is achieved. The authority under this section expires on June 30, 2014. The
25.31commissioner shall report any fee increases under this paragraph 60 days before the fee
25.32change is effective to the senate and house of representatives agriculture budget divisions.
25.33    (f) An additional fee of 50 percent of the registration application fee must be paid by
25.34the applicant for each pesticide to be registered if the application is a renewal application
25.35that is submitted after December 31.
26.1    (g) A registrant must annually report to the commissioner the amount, type and
26.2annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or
26.3otherwise distributed in the state. The report shall be filed by March 1 for the previous
26.4year's registration. The commissioner shall specify the form of the report or approve
26.5the method for submittal of the report and may require additional information deemed
26.6necessary to determine the amount and type of nonagricultural pesticide annually
26.7distributed in the state. The information required shall include the brand name, United
26.8States Environmental Protection Agency registration number, and amount of each
26.9nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but
26.10the information collected, if made public, shall be reported in a manner which does not
26.11identify a specific brand name in the report.
26.12(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually
26.13report to the commissioner the amount, type, and annual gross sales of each registered
26.14agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the
26.15state for use in the state. The report must be filed by January 31 for the previous year's
26.16sales. The commissioner shall specify the form, contents, and approved electronic method
26.17for submittal of the report and may require additional information deemed necessary to
26.18determine the amount and type of agricultural pesticide annually distributed within the
26.19state or into the state. The information required must include the brand name, United States
26.20Environmental Protection Agency registration number, and amount of each agricultural
26.21pesticide sold, offered for sale, or otherwise distributed in the state or into the state.
26.22(i) A person who registers a pesticide with the commissioner under paragraph (b),
26.23or a registrant under paragraph (d), shall keep accurate records for five years detailing
26.24all distribution or sales transactions into the state or in the state and subject to a fee and
26.25surcharge under this section.
26.26(j) The records are subject to inspection, copying, and audit by the commissioner
26.27and must clearly demonstrate proof of payment of all applicable fees and surcharges
26.28for each registered pesticide product sold for use in this state. A person who is located
26.29outside of this state must maintain and make available records required by this subdivision
26.30in this state or pay all costs incurred by the commissioner in the inspecting, copying, or
26.31auditing of the records.
26.32(k) The commissioner may adopt by rule regulations that require persons subject
26.33to audit under this section to provide information determined by the commissioner to be
26.34necessary to enable the commissioner to perform the audit.
27.1    (l) A registrant who is required to pay more than the minimum fee for any pesticide
27.2under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee
27.3paid after March 1 in the year for which the license is to be issued.

27.4    Sec. 33. Minnesota Statutes 2012, section 18B.305, is amended to read:
27.518B.305 PESTICIDE EDUCATION AND TRAINING.
27.6    Subdivision 1. Education and training. (a) The commissioner, as the lead agency,
27.7 shall develop, implement or approve, and evaluate, in ~~conjunction~~ consultation with ~~the~~
27.8 University of Minnesota Extension ~~Service~~, the Minnesota State Colleges and Universities
27.9system, and other educational institutions, innovative educational and training programs
27.10addressing pesticide concerns including:
27.11(1) water quality protection;
27.12(2) endangered species protection;
27.13(3) minimizing pesticide residues in food and water;
27.14(4) worker protection and applicator safety;
27.15(5) chronic toxicity;
27.16(6) integrated pest management and pest resistance; ~~and~~
27.17(7) pesticide disposal;
27.18(8) pesticide drift;
27.19(9) relevant laws including pesticide labels and labeling and state and federal rules
27.20and regulations; and
27.21(10) current science and technology updates.
27.22(b) The commissioner shall appoint educational planning committees which must
27.23include representatives of industry and applicators.
27.24(c) Specific current regulatory concerns must be discussed and, if appropriate,
27.25incorporated into each training session. Relevant changes to pesticide product labels or
27.26labeling or state and federal rules and regulations may be included.
27.27(d) The commissioner may approve programs from private industry, higher
27.28education institutions, and nonprofit organizations that meet minimum requirements for
27.29education, training, and certification.
27.30    Subd. 2. Training manual and examination development. The commissioner,
27.31in conjunction with ~~the~~ University of Minnesota Extension ~~Service~~ and other higher
27.32education institutions, shall continually revise and update pesticide applicator training
27.33manuals and examinations. The manuals and examinations must be written to meet or
27.34exceed the minimum standards required by the United States Environmental Protection
27.35Agency and pertinent state specific information. Questions in the examinations must be
28.1determined by the commissioner in consultation with other responsible agencies. Manuals
28.2and examinations must include pesticide management practices that discuss prevention of
28.3pesticide occurrence in ~~groundwaters~~ groundwater and surface water of the state.

28.4    Sec. 34. Minnesota Statutes 2012, section 18B.316, subdivision 1, is amended to read:
28.5    Subdivision 1. Requirement. (a) A person must not ~~distribute~~ offer for sale or sell
28.6an agricultural pesticide in the state or into the state without first obtaining an agricultural
28.7pesticide dealer license.
28.8(b) Each location or place of business from which an agricultural pesticide is
28.9~~distributed~~ offered for sale or sold in the state or into the state is required to have a
28.10separate agricultural pesticide dealer license.
28.11(c) A person who is a licensed pesticide dealer under section 18B.31 is not required
28.12to also be licensed under this subdivision.

28.13    Sec. 35. Minnesota Statutes 2012, section 18B.316, subdivision 3, is amended to read:
28.14    Subd. 3. Resident agent. A person required to be licensed under subdivisions 1
28.15and 2, or a person licensed as a pesticide dealer pursuant to section 18B.31 and who
28.16operates from a location or place of business outside the state and who ~~distributes~~ offers
28.17for sale or sells an agricultural pesticide into the state, must continuously maintain in
28.18this state the following:
28.19(1) a registered office; and
28.20(2) a registered agent, who may be either a resident of this state whose business
28.21office or residence is identical with the registered office under clause (1), a domestic
28.22corporation or limited liability company, or a foreign corporation of limited liability
28.23company authorized to transact business in this state and having a business office identical
28.24with the registered office.
28.25A person licensed under this section or section 18B.31 shall annually file with the
28.26commissioner, either at the time of initial licensing or as part of license renewal, the name,
28.27address, telephone number, and e-mail address of the licensee's registered agent.
28.28For licensees under section 18B.31 who are located in the state, the licensee is
28.29the registered agent.

28.30    Sec. 36. Minnesota Statutes 2012, section 18B.316, subdivision 4, is amended to read:
28.31    Subd. 4. Responsibility. The resident agent is responsible for the acts of a licensed
28.32agricultural pesticide dealer, or of a licensed pesticide dealer under section 18B.31 who
28.33operates from a location or place of business outside the state and who ~~distributes~~ offers
29.1for sale or sells an agricultural pesticide into the state, as well as the acts of the employees
29.2of those licensees.

29.3    Sec. 37. Minnesota Statutes 2012, section 18B.316, subdivision 8, is amended to read:
29.4    Subd. 8. Report of sales and payment to commissioner. A person who is an
29.5agricultural pesticide dealer, or is a licensed pesticide dealer under section 18B.31, who
29.6~~distributes~~ offers for sale or sells an agricultural pesticide in or into the state, and a
29.7pesticide registrant pursuant to section 18B.26, subdivision 3, paragraph (d), shall no
29.8later than January 31 of each year report and pay applicable fees on annual gross sales
29.9of agricultural pesticides to the commissioner pursuant to requirements under section
29.1018B.26, subdivision 3 , paragraphs (c) and (h).

29.11    Sec. 38. Minnesota Statutes 2012, section 18B.316, subdivision 9, is amended to read:
29.12    Subd. 9. Application. (a) A person must apply to the commissioner for an
29.13agricultural pesticide dealer license on forms and in a manner approved by the
29.14commissioner.
29.15(b) The applicant must be the person in charge of each location or place of business
29.16from which agricultural pesticides are ~~distributed~~ offered for sale or sold in or into the state.
29.17(c) The commissioner may require that the applicant provide information regarding
29.18the applicant's proposed operations and other information considered pertinent by the
29.19commissioner.
29.20(d) The commissioner may require additional demonstration of licensee qualification
29.21if the licensee has had a license suspended or revoked, or has otherwise had a history of
29.22violations in another state or violations of this chapter.
29.23(e) A licensed agricultural pesticide dealer who changes the dealer's address or place
29.24of business must immediately notify the commissioner of the change.
29.25(f) Beginning January 1, 2011, an application for renewal of an agricultural pesticide
29.26dealer license is complete only when a report and any applicable payment of fees under
29.27subdivision 8 are received by the commissioner.

29.28    Sec. 39. Minnesota Statutes 2012, section 18B.37, subdivision 4, is amended to read:
29.29    Subd. 4. ~~Storage, handling,~~ Incident response~~, and disposal~~ plan. A pesticide
29.30dealer, agricultural pesticide dealer, or a commercial, noncommercial, or structural pest
29.31control ~~applicator or the business that the applicator is employed by~~ business must develop
29.32and maintain a an incident response plan that describes ~~its pesticide storage, handling,~~
29.33~~incident response, and disposal practices~~ the actions that will be taken to prevent and
30.1respond to pesticide incidents. The plan must contain the same information as forms
30.2provided by the commissioner. The plan must be kept at a principal business site or location
30.3within this state and must be submitted to the commissioner upon request ~~on forms provided~~
30.4~~by the commissioner. The plan must be available for inspection by the commissioner~~.

30.5    Sec. 40. Minnesota Statutes 2012, section 18C.430, is amended to read:
30.618C.430 COMMERCIAL ANIMAL WASTE TECHNICIAN.
30.7    Subdivision 1. Requirement. (a) ~~Except as provided in paragraph (c), after March~~
30.8~~1, 2000,~~ A person may not manage or apply animal wastes to the land for hire ~~without a~~
30.9~~valid commercial animal waste technician license. This section does not apply to a person~~
30.10~~managing or applying animal waste on land managed by the person's employer.~~:
30.11(1) without a valid commercial animal waste technician applicator license;
30.12(2) without a valid commercial animal waste technician site manager license; or
30.13(3) as a sole proprietorship, company, partnership, or corporation unless a
30.14commercial animal waste technician company license is held and a commercial animal
30.15waste technical site manager is employed by the entity.
30.16(b) A person managing or applying animal wastes for hire must have a valid
30.17license identification card when managing or applying animal wastes for hire and must
30.18display it upon demand by an authorized representative of the commissioner or a law
30.19enforcement officer. The commissioner shall prescribe the information required on the
30.20license identification card.
30.21(c) ~~A person who is not a licensed commercial animal waste technician who has had~~
30.22~~at least two hours of training or experience in animal waste management may manage~~
30.23~~or apply animal waste for hire under the supervision of a commercial animal waste~~
30.24~~technician.~~ A commercial animal waste technician applicator must have a minimum of
30.25two hours of certification training in animal waste management and may only manage or
30.26apply animal waste for hire under the supervision of a commercial animal waste technician
30.27site manager. The commissioner shall prescribe the conditions of the supervision and the
30.28form and format required on the certification training.
30.29(d) This section does not apply to a person managing or applying animal waste on
30.30land managed by the person's employer.
30.31    Subd. 2. Responsibility. A person required to be licensed under this section who
30.32performs animal waste management or application for hire or who employs a person to
30.33perform animal waste management or application for compensation is responsible for
30.34proper management or application of the animal wastes.
31.1    Subd. 3. License. (a) A commercial animal waste technician license, including
31.2applicator, site manager, and company:
31.3(1) is valid for ~~three years~~ one year and expires on December 31 of the ~~third~~ year for
31.4which it is issued, unless suspended or revoked before that date;
31.5(2) is not transferable to another person; and
31.6(3) must be prominently displayed to the public in the commercial animal waste
31.7technician's place of business.
31.8(b) The commercial animal waste technician company license number assigned by
31.9the commissioner must appear on the application equipment when a person manages
31.10or applies animal waste for hire.
31.11    Subd. 4. Application. (a) A person must apply to the commissioner for a commercial
31.12animal waste technician license on forms and in the manner required by the commissioner
31.13and must include the application fee. The commissioner shall prescribe and administer
31.14an examination or equivalent measure to determine if the applicant is eligible for the
31.15commercial animal waste technician license, site manager license or applicator license.
31.16(b) The commissioner of agriculture, in cooperation with ~~the~~ University of
31.17Minnesota Extension ~~Service~~ and appropriate educational institutions, shall establish and
31.18implement a program for training and licensing commercial animal waste technicians.
31.19    Subd. 5. Renewal application. (a) A person must apply to the commissioner of
31.20agriculture to renew a commercial animal waste technician license and must include the
31.21application fee. The commissioner may renew a commercial animal waste technician
31.22applicator or site manager license, subject to reexamination, attendance at workshops
31.23approved by the commissioner, or other requirements imposed by the commissioner to
31.24provide the animal waste technician with information regarding changing technology and
31.25to help ensure a continuing level of competence and ability to manage and apply animal
31.26wastes properly. The applicant may renew a commercial animal waste technician license
31.27within 12 months after expiration of the license without having to meet initial testing
31.28requirements. The commissioner may require additional demonstration of animal waste
31.29technician qualification if a person has had a license suspended or revoked or has had a
31.30history of violations of this section.
31.31(b) An applicant who meets renewal requirements by reexamination instead
31.32of attending workshops must pay a fee for the reexamination as determined by the
31.33commissioner.
31.34    Subd. 6. Financial responsibility. (a) A commercial animal waste technician
31.35license may not be issued unless the applicant furnishes proof of financial responsibility.
31.36The financial responsibility may be demonstrated by (1) proof of net assets equal to or
32.1greater than $50,000, or (2) a performance bond or insurance of the kind and in an amount
32.2determined by the commissioner of agriculture.
32.3(b) The bond or insurance must cover a period of time at least equal to the term of
32.4the applicant's license. The commissioner shall immediately suspend the license of a
32.5person who fails to maintain the required bond or insurance.
32.6(c) An employee of a licensed person is not required to maintain an insurance policy
32.7or bond during the time the employer is maintaining the required insurance or bond.
32.8(d) Applications for reinstatement of a license suspended under paragraph (b) must
32.9be accompanied by proof of satisfaction of judgments previously rendered.
32.10    Subd. 7. Application fee. (a) A person initially applying for or renewing
32.11a commercial animal waste technician applicator license must pay a nonrefundable
32.12~~application~~ fee of ~~$50 and a fee of $10 for each additional identification card requested.~~
32.13 $25. A person initially applying for or renewing a commercial animal waste technician
32.14site manager license must pay a nonrefundable application fee of $50. A person initially
32.15applying for or renewing a commercial animal waste technician company license must
32.16pay a nonrefundable application fee of $100.
32.17(b) A license renewal application received after March 1 in the year for which the
32.18license is to be issued is subject to a penalty fee of 50 percent of the application fee. The
32.19penalty fee must be paid before the renewal license may be issued.
32.20(c) An application for a duplicate commercial animal waste technician license must
32.21be accompanied by a nonrefundable fee of $10.

32.22    Sec. 41. Minnesota Statutes 2012, section 18C.433, subdivision 1, is amended to read:
32.23    Subdivision 1. Requirement. Beginning January 1, 2006, only a commercial
32.24animal waste technician, site manager or commercial animal waste technician applicator
32.25 may apply animal waste from a feedlot that:
32.26(1) has a capacity of 300 animal units or more; and
32.27(2) does not have an updated manure management plan that meets the requirements
32.28of Pollution Control Agency rules.

32.29    Sec. 42. Minnesota Statutes 2012, section 31.94, is amended to read:
32.3031.94 COMMISSIONER DUTIES.
32.31(a) In order to promote opportunities for organic agriculture in Minnesota, the
32.32commissioner shall:
32.33(1) survey producers and support services and organizations to determine
32.34information and research needs in the area of organic agriculture practices;
33.1(2) work with the University of Minnesota to demonstrate the on-farm applicability
33.2of organic agriculture practices to conditions in this state;
33.3(3) direct the programs of the department so as to work toward the promotion of
33.4organic agriculture in this state;
33.5(4) inform agencies of how state or federal programs could utilize and support
33.6organic agriculture practices; and
33.7(5) work closely with producers, the University of Minnesota, the Minnesota Trade
33.8Office, and other appropriate organizations to identify opportunities and needs as well
33.9as ensure coordination and avoid duplication of state agency efforts regarding research,
33.10teaching, marketing, and extension work relating to organic agriculture.
33.11(b) By November 15 of each year that ends in a zero or a five, the commissioner,
33.12in conjunction with the task force created in paragraph (c), shall report on the status of
33.13organic agriculture in Minnesota to the legislative policy and finance committees and
33.14divisions with jurisdiction over agriculture. The report must include available data on
33.15organic acreage and production, available data on the sales or market performance of
33.16organic products, and recommendations regarding programs, policies, and research efforts
33.17that will benefit Minnesota's organic agriculture sector.
33.18(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the
33.19University of Minnesota on policies and programs that will improve organic agriculture in
33.20Minnesota, including how available resources can most effectively be used for outreach,
33.21education, research, and technical assistance that meet the needs of the organic agriculture
33.22community. The task force must consist of the following residents of the state:
33.23(1) three organic farmers ~~using organic agriculture methods~~;
33.24(2) one wholesaler or distributor of organic products;
33.25(3) one representative of organic certification agencies;
33.26(4) two organic processors;
33.27(5) one representative from University of Minnesota Extension;
33.28(6) one University of Minnesota faculty member;
33.29(7) one representative from a nonprofit organization representing producers;
33.30(8) two public members;
33.31(9) one representative from the United States Department of Agriculture;
33.32(10) one retailer of organic products; and
33.33(11) one organic consumer representative.
33.34The commissioner, in consultation with the director of the Minnesota Agricultural
33.35Experiment Station; the dean and director of University of Minnesota Extension; and the
34.1dean of the College of Food, Agricultural and Natural Resource Sciences, shall appoint
34.2members to serve ~~staggered two~~ three-year terms.
34.3Compensation and removal of members are governed by section 15.059, subdivision
34.46 . The task force must meet at least twice each year and expires on June 30, ~~2013~~ 2016.
34.5(d) For the purposes of expanding, improving, and developing production and
34.6marketing of the organic products of Minnesota agriculture, the commissioner may
34.7receive funds from state and federal sources and spend them, including through grants or
34.8contracts, to assist producers and processors to achieve certification, to conduct education
34.9or marketing activities, to enter into research and development partnerships, or to address
34.10production or marketing obstacles to the growth and well-being of the industry.
34.11(e) The commissioner may facilitate the registration of state organic production
34.12and handling operations including those exempt from organic certification according to
34.13Code of Federal Regulations, title 7, section 205.101, and certification agents operating
34.14within the state.

34.15    Sec. 43. Minnesota Statutes 2012, section 41A.10, subdivision 2, is amended to read:
34.16    Subd. 2. Cellulosic biofuel production goal. The state cellulosic biofuel production
34.17goal is one-quarter of the total amount necessary for ~~ethanol~~ biofuel use required under
34.18section 239.791, subdivision 1a 1, by 2015 or when cellulosic biofuel facilities in the state
34.19attain a total annual production level of 60,000,000 gallons, whichever is first.

34.20    Sec. 44. Minnesota Statutes 2012, section 41A.10, is amended by adding a subdivision
34.21to read:
34.22    Subd. 3. Expiration. This section expires January 1, 2015.

34.23    Sec. 45. Minnesota Statutes 2012, section 41A.105, subdivision 1a, is amended to read:
34.24    Subd. 1a. Definitions. For the purpose of this section:
34.25    (1) "biobased content" means a chemical, polymer, monomer, or plastic that is not
34.26sold primarily for use as food, feed, or fuel and that has a biobased percentage of at least
34.2751 percent as determined by testing representative samples using American Society for
34.28Testing and Materials specification D6866;
34.29    (2) "biobased formulated product" means a product that is not sold primarily for use
34.30as food, feed, or fuel and that has a biobased content percentage of at least ten percent
34.31as determined by testing representative samples using American Society for Testing
34.32and Materials specification D6866, or that contains a biobased chemical constituent
35.1that displaces a known hazardous or toxic constituent previously used in the product
35.2formulation;
35.3    ~~(1)~~ (3) "biobutanol facility" means a facility at which biobutanol is produced; and
35.4    ~~(2)~~ (4) "biobutanol" means fermentation isobutyl alcohol that is derived from
35.5agricultural products, including potatoes, cereal grains, cheese whey, and sugar beets;
35.6forest products; or other renewable resources, including residue and waste generated
35.7from the production, processing, and marketing of agricultural products, forest products,
35.8and other renewable resources.

35.9    Sec. 46. Minnesota Statutes 2012, section 41A.105, subdivision 3, is amended to read:
35.10    Subd. 3. Duties. The board shall research and report to the commissioner of
35.11agriculture and to the legislature recommendations as to how the state can invest its
35.12resources to most efficiently achieve energy independence, agricultural and natural
35.13resources sustainability, and rural economic vitality. The board shall:
35.14    (1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen,
35.15methanol, biodiesel, and ethanol within Minnesota;
35.16    (2) examine the opportunity for biobased content and biobased formulated product
35.17production at integrated biorefineries or stand alone facilities using agricultural and
35.18forestry feedstocks;
35.19    ~~(2)~~ (3) develop equity grant programs to assist locally owned facilities;
35.20    ~~(3)~~ (4) study the proper role of the state in creating financing and investing and
35.21providing incentives;
35.22    ~~(4)~~ (5) evaluate how state and federal programs, including the Farm Bill, can best
35.23work together and leverage resources;
35.24    ~~(5)~~ (6) work with other entities and committees to develop a clean energy program;
35.25and
35.26    ~~(6)~~ (7) report to the legislature before February 1 each year with recommendations
35.27as to appropriations and results of past actions and projects.

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

35.30    Sec. 48. Minnesota Statutes 2012, section 41A.12, is amended by adding a subdivision
35.31to read:
36.1    Subd. 3a. Grant awards. Grant projects may continue for up to three years.
36.2Multiyear projects must be reevaluated by the commissioner before second- and third-year
36.3funding is approved. A project is limited to one grant for its funding.

36.4    Sec. 49. Minnesota Statutes 2012, section 41B.04, subdivision 9, is amended to read:
36.5    Subd. 9. Restructured loan agreement. (a) For a deferred restructured loan, all
36.6payments on the primary and secondary principal, all payments of interest on the secondary
36.7principal, and an agreed portion of the interest payable to the eligible agricultural lender
36.8on the primary principal must be deferred to the end of the term of the loan.
36.9(b) Interest on secondary principal must accrue at a below market interest rate.
36.10(c) At the conclusion of the term of the restructured loan, the borrower owes primary
36.11principal, secondary principal, and deferred interest on primary and secondary principal.
36.12However, part of this balloon payment may be forgiven following an appraisal by the
36.13lender and the authority to determine the current market value of the real estate subject to
36.14the mortgage. If the current market value of the land after appraisal is less than the amount
36.15of debt owed by the borrower to the lender and authority on this obligation, that portion of
36.16the obligation that exceeds the current market value of the real property must be forgiven
36.17by the lender and the authority in the following order:
36.18(1) deferred interest on secondary principal;
36.19(2) secondary principal;
36.20(3) deferred interest on primary principal;
36.21(4) primary principal as provided in an agreement between the authority and the
36.22lender; and
36.23(5) accrued but not deferred interest on primary principal.
36.24(d) For an amortized restructured loan, payments must include installments on
36.25primary principal and interest on the primary principal. An amortized restructured loan
36.26must be amortized over a time period and upon terms to be established by the authority by
36.27rule.
36.28(e) A borrower may prepay the restructured loan, with all primary and secondary
36.29principal and interest and deferred interest at any time ~~without prepayment penalty~~.
36.30(f) The authority may not participate in refinancing a restructured loan at the
36.31conclusion of the restructured loan.

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

37.1    Sec. 51. Minnesota Statutes 2012, section 116J.437, subdivision 1, is amended to read:
37.2    Subdivision 1. Definitions. (a) For the purpose of this section, the following terms
37.3have the meanings given.
37.4    (b) "Green economy" means products, processes, methods, technologies, or services
37.5intended to do one or more of the following:
37.6    (1) increase the use of energy from renewable sources, including through achieving
37.7the renewable energy standard established in section 216B.1691;
37.8    (2) achieve the statewide energy-savings goal established in section 216B.2401,
37.9including energy savings achieved by the conservation investment program under section
37.10216B.241 ;
37.11    (3) achieve the greenhouse gas emission reduction goals of section 216H.02,
37.12subdivision 1, including through reduction of greenhouse gas emissions, as defined in
37.13section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through,
37.14but not limited to, carbon capture, storage, or sequestration;
37.15    (4) monitor, protect, restore, and preserve the quality of surface waters, including
37.16actions to further the purposes of the Clean Water Legacy Act as provided in section
37.17114D.10, subdivision 1 ;
37.18    (5) expand the use of biofuels, including by expanding the feasibility or reducing the
37.19cost of producing biofuels or the types of equipment, machinery, and vehicles that can
37.20use biofuels, including activities to achieve the ~~biofuels 25 by 2025 initiative in sections~~
37.21~~41A.10, subdivision 2, and~~ ~~41A.11~~ petroleum replacement goal in section 239.7911; or
37.22    (6) increase the use of green chemistry, as defined in section 116.9401.
37.23For the purpose of clause (3), "green economy" includes strategies that reduce carbon
37.24emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass
37.25transit or otherwise reducing commuting for employees.

37.26    Sec. 52. Minnesota Statutes 2012, section 223.17, is amended by adding a subdivision
37.27to read:
37.28    Subd. 7a. Bond requirements; claims. For entities licensed under this chapter
37.29and chapter 232, the bond requirements and claims against the bond are governed under
37.30section 232.22, subdivision 6a.

37.31    Sec. 53. Minnesota Statutes 2012, section 232.22, is amended by adding a subdivision
37.32to read:
37.33    Subd. 6a. Bond determinations. If a public grain warehouse operator is licensed
37.34under both this chapter and chapter 223, the warehouse shall have its bond determined
38.1by its gross annual grain purchase amount or its annual average grain storage value,
38.2whichever is greater. For those entities licensed under this chapter and chapter 223, the
38.3entire bond shall be available to any claims against the bond for claims filed under this
38.4chapter and chapter 223.

38.5    Sec. 54. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
38.6to read:
38.7    Subd. 1a. Advanced biofuel. "Advanced biofuel" has the meaning given in Public
38.8Law 110-140, title 2, subtitle A, section 201.

38.9    Sec. 55. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
38.10to read:
38.11    Subd. 5a. Biofuel. "Biofuel" means a renewable fuel with an approved pathway
38.12under authority of the federal Energy Policy Act of 2005, Public Law 109-58, as amended
38.13by the federal Energy Independence and Security Act of 2007, Public Law 110–140, and
38.14approved for sale by the United States Environmental Protection Agency. As such, biofuel
38.15includes both advanced and conventional biofuels.

38.16    Sec. 56. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision
38.17to read:
38.18    Subd. 7a. Conventional biofuel. "Conventional biofuel" means ethanol derived
38.19from cornstarch, as defined in Public Law 110-140, title 2, subtitle A, section 201.

38.20    Sec. 57. Minnesota Statutes 2012, section 239.791, subdivision 1, is amended to read:
38.21    Subdivision 1. Minimum ~~ethanol~~ biofuel content required. (a) Except as provided
38.22in subdivisions 10 to 14, a person responsible for the product shall ensure that all gasoline
38.23sold or offered for sale in Minnesota must contain at least the quantity of ~~ethanol~~ biofuel
38.24 required by clause (1) or (2), ~~whichever is greater~~ at the option of the person responsible
38.25for the product:
38.26    (1) the greater of:
38.27    (i) 10.0 percent ~~denatured ethanol~~ conventional biofuel by volume; or
38.28    ~~(2)~~ (ii) the maximum percent of ~~denatured ethanol~~ conventional biofuel by volume
38.29authorized in a waiver granted by the United States Environmental Protection Agency; or
38.30    (2) 10.0 percent of a biofuel, other than a conventional biofuel, by volume authorized
38.31in a waiver granted by the United States Environmental Protection Agency or a biofuel
39.1formulation registered by the United States Environmental Protection Agency under
39.2United States Code, title 42, section 7545.
39.3    (b) For purposes of enforcing the ~~minimum ethanol~~ requirement of paragraph
39.4(a), clause (1), item (i), or clause (2), a ~~gasoline/ethanol~~ gasoline/biofuel blend will be
39.5construed to be in compliance if the ~~ethanol~~ biofuel content, exclusive of denaturants and
39.6other permitted components, comprises not less than 9.2 percent by volume and not more
39.7than 10.0 percent by volume of the blend as determined by an appropriate United States
39.8Environmental Protection Agency or American Society of Testing Materials standard
39.9method of analysis ~~of alcohol/ether content in engine fuels~~.
39.10    (c) ~~The provisions of this subdivision are suspended during any period of time that~~
39.11~~subdivision 1a, paragraph (a), is in effect.~~ The aggregate amount of biofuel blended
39.12pursuant to this subdivision may be any biofuel; however, conventional biofuel must
39.13comprise no less than the portion specified on and after the specified dates:

(1)	July 1, 2013	90 percent
(2)	January 1, 2015	80 percent
(3)	January 1, 2017	70 percent
(4)	January 1, 2020	60 percent
(5)	January 1, 2025	no minimum

39.19    Sec. 58. Minnesota Statutes 2012, section 239.791, subdivision 2a, is amended to read:
39.20    Subd. 2a. Federal Clean Air Act waivers; conditions. (a) Before a waiver granted
39.21by the United States Environmental Protection Agency under ~~section 211(f)(4) of the~~
39.22~~Clean Air Act,~~ United States Code, title 42, section 7545, ~~subsection (f), paragraph (4),~~
39.23 may alter the minimum content level required by subdivision 1, paragraph (a), clause ~~(2),~~
39.24~~or subdivision 1a, paragraph (a), clause (2)~~ (1), item (ii), the waiver must:
39.25    (1) apply to all gasoline-powered motor vehicles irrespective of model year; and
39.26    (2) allow for special regulatory treatment of Reid vapor pressure under Code of
39.27Federal Regulations, title 40, section 80.27, paragraph (d), for blends of gasoline and
39.28ethanol up to the maximum percent of denatured ethanol by volume authorized under
39.29the waiver.
39.30    (b) The minimum ~~ethanol~~ biofuel requirement in subdivision 1, paragraph (a), clause
39.31(2), ~~or subdivision 1a, paragraph (a), clause (2),~~ shall, upon the grant of the federal waiver
39.32 or authority specified in United States Code, title 42, section 7545, that allows for greater
39.33blends of gasoline and biofuel in this state, be effective the day after the commissioner
39.34of commerce publishes notice in the State Register. In making this determination, the
39.35commissioner shall consider the amount of time required by refiners, retailers, pipeline
39.36and distribution terminal companies, and other fuel suppliers, acting expeditiously, to
40.1make the operational and logistical changes required to supply fuel in compliance with
40.2the minimum ~~ethanol~~ biofuel requirement.

40.3    Sec. 59. Minnesota Statutes 2012, section 239.791, subdivision 2b, is amended to read:
40.4    Subd. 2b. Limited liability waiver. No motor fuel shall be deemed to be a defective
40.5product by virtue of the fact that the motor fuel is formulated or blended pursuant to
40.6the requirements of subdivision 1, paragraph (a), clause (2), ~~or subdivision 1a,~~ under
40.7any theory of liability except for simple or willful negligence or fraud. This subdivision
40.8does not preclude an action for negligent, fraudulent, or willful acts. This subdivision
40.9does not affect a person whose liability arises under chapter 115, water pollution control;
40.10115A, waste management; 115B, environmental response and liability; 115C, leaking
40.11underground storage tanks; or 299J, pipeline safety; under public nuisance law for damage
40.12to the environment or the public health; under any other environmental or public health
40.13law; or under any environmental or public health ordinance or program of a municipality
40.14as defined in section 466.01.

40.15    Sec. 60. Minnesota Statutes 2012, section 239.7911, is amended to read:
40.16239.7911 PETROLEUM REPLACEMENT PROMOTION.
40.17    Subdivision 1. Petroleum replacement goal. The tiered petroleum replacement
40.18goal of the state of Minnesota is that biofuel comprises at least the specified portion of
40.19total gasoline sold or offered for sale in this state by each specified year:
40.20    ~~(1) at least 20 percent of the liquid fuel sold in the state is derived from renewable~~
40.21~~sources by December 31, 2015; and~~
40.22    ~~(2) at least 25 percent of the liquid fuel sold in the state is derived from renewable~~
40.23~~sources by December 31, 2025.~~

(1)	2015	14 percent
(2)	2017	18 percent
(3)	2020	25 percent
(4)	2025	30 percent

40.28    Subd. 2. Promotion of renewable liquid fuels. (a) The commissioner of agriculture,
40.29in consultation with the commissioners of commerce and the Pollution Control Agency,
40.30shall identify and implement activities necessary ~~for the widespread use of renewable~~
40.31~~liquid fuels in the state~~ to achieve the goals in subdivision 1. Beginning November
40.321, 2005, and continuing through 2015, the commissioners, or their designees, shall
40.33~~work with~~ convene a task force pursuant to section 15.014 that includes representatives
40.34from the renewable fuels industry, petroleum retailers, refiners, automakers, small
41.1engine manufacturers, and other interested groups~~, to~~. The task force shall assist the
41.2commissioners in carrying out the activities in paragraph (b) and eliminating barriers to the
41.3use of greater biofuel blends in this state. The task force must coordinate efforts with the
41.4NextGen Energy Board, the biodiesel task force, and the Renewable Energy Roundtable
41.5and develop annual recommendations for administrative and legislative action.
41.6    (b) The activities of the commissioners under this subdivision shall include, but not
41.7be limited to:
41.8    (1) developing recommendations for specific, cost-effective incentives necessary
41.9to expedite the use of greater biofuel blends in this state including, but not limited to,
41.10incentives for retailers to install equipment necessary ~~for dispensing~~ to dispense renewable
41.11liquid fuels to the public;
41.12    (2) expanding the renewable-fuel options available to Minnesota consumers by
41.13obtaining federal approval for the use of ~~E20 and~~ additional blends that contain a greater
41.14percentage of ~~ethanol, including but not limited to E30 and E50, as gasoline~~ biofuel;
41.15    (3) developing recommendations ~~for ensuring~~ to ensure that motor vehicles and
41.16small engine equipment have access to an adequate supply of fuel;
41.17    (4) working with the owners and operators of large corporate automotive fleets in the
41.18state to increase their use of renewable fuels; ~~and~~
41.19    (5) working to maintain an affordable retail price for liquid fuels;
41.20    (6) facilitating the production and use of advanced biofuels in this state; and
41.21    (7) developing procedures for reporting the amount and type of biofuel under
41.22subdivision 1, and section 239.791, subdivision 1, paragraph (c).
41.23    (c) Notwithstanding section 15.014, the task force required under paragraph (a)
41.24expires on December 31, 2015.

41.25    Sec. 61. Minnesota Statutes 2012, section 296A.01, is amended by adding a
41.26subdivision to read:
41.27    Subd. 8b. Biobutanol. "Biobutanol" means isobutyl alcohol produced by
41.28fermenting agriculturally generated organic material that is to be blended with gasoline
41.29and meets either:
41.30    (1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline
41.31for use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM
41.32for general distribution; or
41.33    (2) in the absence of an ASTM Standard Specification, the following list of
41.34requirements:
41.35    (i) visually free of sediment and suspended matter;
42.1    (ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient
42.2temperature whichever is higher;
42.3    (iii) free of any adulterant or contaminant that can render it unacceptable for its
42.4commonly used applications;
42.5    (iv) contains not less than 96 volume percent isobutyl alcohol;
42.6    (v) contains not more than 0.4 volume percent methanol;
42.7    (vi) contains not more than 1.0 volume percent water as determined by ASTM
42.8standard test method E203 or E1064;
42.9    (vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined
42.10by ASTM standard test method D1613;
42.11    (viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters
42.12as determined by ASTM standard test method D381;
42.13    (ix) sulfur content of not more than 30 parts per million as determined by ASTM
42.14standard test method D2622 or D5453; and
42.15    (x) contains not more than 4 parts per million total inorganic sulfate.

42.16    Sec. 62. Minnesota Statutes 2012, section 296A.01, subdivision 19, is amended to read:
42.17    Subd. 19. E85. "E85" means a petroleum product that is a blend of agriculturally
42.18derived denatured ethanol and gasoline or natural gasoline that ~~typically~~ contains not more
42.19than 85 percent ethanol by volume, but at a minimum must contain 6051 percent ethanol by
42.20volume. For the purposes of this chapter, the energy content of E85 will be considered to be
42.2182,000 BTUs per gallon. E85 produced for use as a motor fuel in alternative fuel vehicles
42.22as defined in subdivision 5 must comply with ASTM specification ~~D5798-07~~ D5798-11.
42.23EFFECTIVE DATE.This section is effective the day following final enactment.

42.24    Sec. 63. REVISOR'S INSTRUCTION.
42.25The revisor of statutes shall renumber Minnesota Statutes, section 18B.01,
42.26subdivision 4a, as subdivision 4b and correct any cross-references.

42.27    Sec. 64. REPEALER.
42.28Minnesota Statutes 2012, sections 18.91, subdivisions 3 and 5; 18B.07, subdivision
42.296; and 239.791, subdivision 1a, are repealed.

42.30ARTICLE 3

42.31ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS

Section 1. SUMMARY OF APPROPRIATIONS.

43.1 The amounts shown in this section summarize direct appropriations, by fund, made
43.2in this article.

		2014		2015		Total
General	$	87,464,000	$	87,843,000	$	175,307,000
State Government Special Revenue		75,000		75,000		150,000
Environmental		68,680,000		68,825,000		137,505,000
Natural Resources		91,424,000		94,184,000		185,608,000
Game and Fish		91,372,000		91,372,000		182,744,000
Remediation		10,596,000		10,596,000		21,192,000
Permanent School		200,000		200,000		400,000
Special Revenue		1,722,000		1,677,000		3,399,000
Total	$	377,492,000	$	377,637,000	$	755,129,000

Sec. 2. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.

43.15 The sums shown in the columns marked "Appropriations" are appropriated to the
43.16agencies and for the purposes specified in this article. The appropriations are from the
43.17general fund, or another named fund, and are available for the fiscal years indicated
43.18for each purpose. The figures "2014" and "2015" used in this article mean that the
43.19appropriations listed under them are available for the fiscal year ending June 30, 2014, or
43.20June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
43.21year 2015. "The biennium" is fiscal years 2014 and 2015. Appropriations for the fiscal
43.22year ending June 30, 2013, are effective the day following final enactment.

Sec. 3. POLLUTION CONTROL AGENCY

Subdivision 1.Total Appropriation

85,806,000

85,931,000

Appropriations by Fund
	2014	2015
General	5,133,000	5,158,000
State Government Special Revenue	75,000	75,000
Special Revenue	1,422,000	1,377,000
Environmental	68,680,000	68,825,000
Remediation	10,496,000	10,496,000

44.1The amounts that may be spent for each
44.2purpose are specified in the following
44.3subdivisions.

Subd. 2.Water

24,697,000

Appropriations by Fund
	2014	2015
General	3,737,000	3,737,000
State Government Special Revenue	75,000	75,000
Environmental	20,885,000	20,885,000

44.11$1,378,000 the first year and $1,378,000 the
44.12second year are for water program operations.
44.13$1,959,000 the first year and $1,959,000
44.14the second year are for grants to delegated
44.15counties to administer the county feedlot
44.16program under Minnesota Statutes, section
44.17116.0711, subdivisions 2 and 3. By January
44.1815, 2016, the commissioner shall submit a
44.19report detailing the results achieved with
44.20this appropriation to the chairs and ranking
44.21minority members of the senate and house
44.22of representatives committees and divisions
44.23with jurisdiction over environment and
44.24natural resources policy and finance. Money
44.25remaining after the first year is available for
44.26the second year.
44.27$740,000 the first year and $740,000 the
44.28second year are from the environmental
44.29fund to address the need for continued
44.30increased activity in the areas of new
44.31technology review, technical assistance
44.32for local governments, and enforcement
44.33under Minnesota Statutes, sections 115.55
44.34to 115.58, and to complete the requirements
44.35of Laws 2003, chapter 128, article 1, section
44.36165.
45.1$400,000 the first year and $400,000
45.2the second year are for the clean water
45.3partnership program. Any unexpended
45.4balance in the first year does not cancel but
45.5is available in the second year. Priority shall
45.6be given to projects preventing impairments
45.7and degradation of lakes, rivers, streams,
45.8and groundwater according to Minnesota
45.9Statutes, section 114D.20, subdivision 2,
45.10clause (4).
45.11$664,000 the first year and $664,000 the
45.12second year are from the environmental
45.13fund for subsurface sewage treatment
45.14system (SSTS) program administration
45.15and community technical assistance and
45.16education, including grants and technical
45.17assistance to communities for water quality
45.18protection. Of this amount, $80,000 each
45.19year is for assistance to counties through
45.20grants for SSTS program administration.
45.21A county receiving a grant from this
45.22appropriation shall submit a report detailing
45.23the results achieved with the grant to the
45.24commissioner. The county is not eligible for
45.25funds from the second year appropriation
45.26until the commissioner receives the report.
45.27Any unexpended balance in the first year does
45.28not cancel but is available in the second year.
45.29$105,000 the first year and $105,000 the
45.30second year are from the environmental fund
45.31for registration of wastewater laboratories.
45.32$50,000 the first year is from the
45.33environmental fund for providing technical
45.34assistance to local units of government to
45.35address the water quality impacts from
46.1polycyclic aromatic hyrdrocarbons resulting
46.2from the use of coal tar products as regulated
46.3under Minnesota Statutes, section 116C.201.
46.4$313,000 the first year and $313,000 the
46.5second year are from the environmental
46.6fund to be transferred to the commissioner
46.7of health to continue perfluorochemical
46.8biomonitoring in eastern metropolitan
46.9communities, as recommended by the
46.10Environmental Health Tracking and
46.11Biomonitoring Advisory Panel.
46.12Notwithstanding Minnesota Statutes, section
46.1316A.28, the appropriations encumbered on or
46.14before June 30, 2015, as grants or contracts
46.15for SSTS's, surface water and groundwater
46.16assessments, total maximum daily loads,
46.17storm water, and water quality protection in
46.18this subdivision are available until June 30,
46.192018.

Subd. 3.Air

15,031,000

15,201,000

Appropriations by Fund
	2014	2015
Environmental	15,031,000	15,201,000

46.24$200,000 the first year and $200,000 the
46.25second year are from the environmental fund
46.26for a monitoring program under Minnesota
46.27Statutes, section 116.454.
46.28Up to $150,000 the first year and $150,000
46.29the second year may be transferred from the
46.30environmental fund to the small business
46.31environmental improvement loan account
46.32established in Minnesota Statutes, section
46.33116.993.
47.1$125,000 the first year and $125,000 the
47.2second year are from the environmental fund
47.3for monitoring ambient air for hazardous
47.4pollutants in the metropolitan area.
47.5$360,000 the first year and $360,000 the
47.6second year are from the environmental fund
47.7for systematic, localized monitoring efforts
47.8in the state that:
47.9(1) sample ambient air for a period of one to
47.10three months at various sites;
47.11(2) analyze the samples and compare the data
47.12to the agency's fixed air monitoring sites; and
47.13(3) determine whether significant localized
47.14differences exist.
47.15The commissioner, when selecting areas to
47.16monitor, shall give priority to areas where low
47.17income, indigenous American Indians, and
47.18communities of color are disproportionately
47.19impacted by pollution from highway traffic,
47.20air traffic, and industrial sources to assist
47.21with efforts to ensure environmental justice
47.22for those areas. For the purposes of this
47.23paragraph "environmental justice" means the
47.24fair treatment of people of all races, cultures,
47.25and income levels in the development,
47.26adoption, implementation, and enforcement
47.27of environmental laws and policies.
47.28$540,000 the first year and $540,000 the
47.29second year are from the environmental
47.30fund for emission reductions activities and
47.31grants to small businesses and other nonpoint
47.32emission reduction efforts. Any unexpended
47.33balance in the first year does not cancel but is
47.34available in the second year.

Subd. 4.Land

17,412,000

Appropriations by Fund
	2014	2015
Environmental	6,916,000	6,916,000
Remediation	10,496,000	10,496,000

48.6All money for environmental response,
48.7compensation, and compliance in the
48.8remediation fund not otherwise appropriated
48.9is appropriated to the commissioners of the
48.10Pollution Control Agency and agriculture
48.11for purposes of Minnesota Statutes, section
48.12115B.20, subdivision 2, clauses (1), (2),
48.13(3), (6), and (7). At the beginning of each
48.14fiscal year, the two commissioners shall
48.15jointly submit an annual spending plan
48.16to the commissioner of management and
48.17budget that maximizes the utilization of
48.18resources and appropriately allocates the
48.19money between the two departments. This
48.20appropriation is available until June 30, 2015.
48.21$3,616,000 the first year and $3,616,000 the
48.22second year are from the remediation fund for
48.23purposes of the leaking underground storage
48.24tank program to protect the land. These same
48.25annual amounts are transferred from the
48.26petroleum tank fund to the remediation fund.
48.27$252,000 the first year and $252,000 the
48.28second year are from the remediation fund
48.29for transfer to the commissioner of health for
48.30private water supply monitoring and health
48.31assessment costs in areas contaminated
48.32by unpermitted mixed municipal solid
48.33waste disposal facilities and drinking water
48.34advisories and public information activities
48.35for areas contaminated by hazardous releases.

Subd. 5.Environmental Assistance and
Cross-Media

28,271,000

28,201,000

Appropriations by Fund
	2014	2015
Special Revenue	1,422,000	1,377,000
Environmental	25,848,000	25,823,000
General	1,001,000	1,001,000

49.8$14,450,000 the first year and $14,450,000
49.9the second year are from the environmental
49.10fund for SCORE grants to counties. Of
49.11this amount, $14,250,000 each year is for
49.12SCORE block grants and $200,000 each year
49.13is for competitive grants.
49.14$119,000 the first year and $119,000 the
49.15second year are from the environmental
49.16fund for environmental assistance grants
49.17or loans under Minnesota Statutes, section
49.18115A.0716. Any unencumbered grant and
49.19loan balances in the first year do not cancel
49.20but are available for grants and loans in the
49.21second year.
49.22$89,000 the first year and $89,000 the
49.23second year are from the environmental fund
49.24for duties related to harmful chemicals in
49.25products under Minnesota Statutes, sections
49.26116.9401 to 116.9407. Of this amount,
49.27$57,000 each year is transferred to the
49.28commissioner of health.
49.29$600,000 the first year and $600,000 the
49.30second year are from the environmental
49.31fund to address environmental health risks.
49.32Of this amount, $499,000 the first year and
49.33$499,000 the second year are for transfer to
49.34the Department of Health.
50.1$312,000 the first year and $312,000 the
50.2second year are from the general fund and
50.3$188,000 the first year and $188,000 the
50.4second year are from the environmental fund
50.5for Environmental Quality Board operations
50.6and support.
50.7$75,000 the first year and $50,000 the second
50.8year are from the environmental fund for
50.9transfer to the Office of Administrative
50.10Hearings to establish sanitary districts.
50.11$1,442,000 the first year and $1,377,000 the
50.12second year are from the special revenue
50.13fund for the Environmental Quality Board
50.14to lead an interagency team to provide
50.15technical assistance regarding the mining,
50.16processing, and transporting of silica sand
50.17and develop the model standards and criteria
50.18required under new Minnesota Statues,
50.19section 116C.99. Of this amount, $266,000
50.20the first year and $263,000 the second year
50.21are for transfer to the commissioner of
50.22health, $447,000 the first year and $420,000
50.23the second year are for transfer to the
50.24commissioner of natural resources, $5,000
50.25the first year and $10,000 the second year are
50.26for transfer to the Board of Water and Soil
50.27Resources, and $150,000 the first year and
50.28$140,000 the second year are for transfer to
50.29the commissioner of Transportation.
50.30$5,000 the first year is from the environmental
50.31fund to prepare and submit a report to the
50.32chairs and ranking minority members of
50.33the senate and house of representatives
50.34committees and divisions with jurisdiction
50.35over the environment and natural resources,
51.1by December 1, 2013, with recommendations
51.2for a statewide recycling refund program
51.3for beverage containers that achieves an 80
51.4percent recycling rate.
51.5All money deposited in the environmental
51.6fund for the metropolitan solid waste
51.7landfill fee in accordance with Minnesota
51.8Statutes, section 473.843, and not otherwise
51.9appropriated, is appropriated for the purposes
51.10of Minnesota Statutes, section 473.844.
51.11Notwithstanding Minnesota Statutes, section
51.1216A.28, the appropriations encumbered on
51.13or before June 30, 2015, as contracts or
51.14grants for surface water and groundwater
51.15assessments; environmental assistance
51.16awarded under Minnesota Statutes, section
51.17115A.0716; technical and research assistance
51.18under Minnesota Statutes, section 115A.152;
51.19technical assistance under Minnesota
51.20Statutes, section 115A.52; and pollution
51.21prevention assistance under Minnesota
51.22Statutes, section 115D.04, are available until
51.23June 30, 2017.

Subd. 6.Administrative Support

395,000

420,000

51.25The commissioner shall submit the agency's
51.26budget for fiscal years 2016 and 2017 to
51.27the legislature in a manner that allows
51.28the legislature and public to understand
51.29the outcomes that will be achieved with
51.30the appropriations. The budget must be
51.31structured so that a significantly larger
51.32portion of the revenues from solid waste
51.33taxes are spent on solid waste activities.

Sec. 4. NATURAL RESOURCES

Subdivision 1.Total Appropriation

236,783,000

239,814,000

Appropriations by Fund
	2014	2015
General	59,707,000	59,978,000
Natural Resources	85,104,000	87,864,000
Game and Fish	91,372,000	91,372,000
Remediation	100,000	100,000
Permanent School	200,000	200,000
Special Revenue Fund	300,000	300,000

52.11The amounts that may be spent for each
52.12purpose are specified in the following
52.13subdivisions.

Subd. 2.Land and Mineral Resources
Management

6,073,000

Appropriations by Fund
	2014	2015
General	722,000	722,000
Natural Resources	3,700,000	3,700,000
Game and Fish	1,451,000	1,451,000
Permanent School	200,000	200,000

52.22$68,000 the first year and $68,000 the
52.23second year are for minerals cooperative
52.24environmental research, of which $34,000
52.25the first year and $34,000 the second year are
52.26available only as matched by $1 of nonstate
52.27money for each $1 of state money. The
52.28match may be cash or in-kind.
52.29$251,000 the first year and $251,000 the
52.30second year are for iron ore cooperative
52.31research. Of this amount, $200,000 each year
52.32is from the minerals management account
52.33in the natural resources fund. $175,000 the
52.34first year and $175,000 the second year are
52.35available only as matched by $1 of nonstate
52.36money for each $1 of state money. The match
52.37may be cash or in-kind. Any unencumbered
53.1balance from the first year does not cancel
53.2and is available in the second year.
53.3$2,779,000 the first year and $2,779,000
53.4the second year are from the minerals
53.5management account in the natural resources
53.6fund for use as provided in Minnesota
53.7Statutes, section 93.2236, paragraph (c),
53.8for mineral resource management, projects
53.9to enhance future mineral income, and
53.10projects to promote new mineral resource
53.11opportunities.
53.12$200,000 the first year and $200,000 the
53.13second year are from the state forest suspense
53.14account in the permanent school fund to
53.15accelerate land exchanges, land sales, and
53.16commercial leasing of school trust lands and
53.17to identify, evaluate, and lease construction
53.18aggregate located on school trust lands. This
53.19appropriation is to be used for securing
53.20long-term economic return from the
53.21school trust lands consistent with fiduciary
53.22responsibilities and sound natural resources
53.23conservation and management principles.
53.24$145,000 the first year and $145,000
53.25the second year are from the minerals
53.26management account in the natural resources
53.27fund for transfer to the commissioner of
53.28administration for the school trust lands
53.29director.
53.30The appropriations in Laws 2011, first
53.31special session, chapter 2, article 1, section 4,
53.32for support of the lands records management
53.33system are available until spent.

Subd. 3.Ecological and Water Resources

28,227,000

30,987,000

Appropriations by Fund
	2014	2015
General	11,262,000	11,262,000
Natural Resources	12,902,000	15,662,000
Game and Fish	4,063,000	4,063,000

54.6$2,942,000 the first year and $2,942,000 the
54.7second year are from the invasive species
54.8account in the natural resources fund and
54.9$3,706,000 the first year and $3,706,000 the
54.10second year are from the general fund for
54.11management, public awareness, assessment
54.12and monitoring research, and water access
54.13inspection to prevent the spread of invasive
54.14species; management of invasive plants in
54.15public waters; and management of terrestrial
54.16invasive species on state-administered lands.
54.17Of this amount, up to $200,000 each year
54.18is from the invasive species account in the
54.19natural resources fund for liability insurance
54.20coverage for Asian carp deterrent barriers.
54.21$5,000,000 the first year and $5,000,000 the
54.22second year are from the water management
54.23account in the natural resources fund for only
54.24the purposes specified in Minnesota Statutes,
54.25section 103G.27, subdivision 2. Of this
54.26amount, $190,000 the first year and $170,000
54.27the second year are for enhancements to
54.28the online system for water appropriation
54.29permits to account for preliminary approval
54.30requirements and related water appropriation
54.31permit activities.
54.32$53,000 the first year and $53,000 the
54.33second year are for a grant to the Mississippi
54.34Headwaters Board for up to 50 percent of the
54.35cost of implementing the comprehensive plan
54.36for the upper Mississippi within areas under
55.1the board's jurisdiction. By January 15, 2016,
55.2the board shall submit a report detailing the
55.3results achieved with this appropriation to
55.4the commissioner and the chairs and ranking
55.5minority members of the senate and house
55.6of representatives committees and divisions
55.7with jurisdiction over environment and
55.8natural resources policy and finance.
55.9$5,000 the first year and $5,000 the second
55.10year are for payment to the Leech Lake Band
55.11of Chippewa Indians to implement the band's
55.12portion of the comprehensive plan for the
55.13upper Mississippi.
55.14$264,000 the first year and $264,000 the
55.15second year are for grants for up to 50
55.16percent of the cost of implementation of
55.17the Red River mediation agreement. The
55.18commissioner shall submit a report to the
55.19chairs of the legislative committees having
55.20primary jurisdiction over environment and
55.21natural resources policy and finance on the
55.22accomplishments achieved with the grants
55.23by January 15, 2015.
55.24$1,643,000 the first year and $1,643,000
55.25the second year are from the heritage
55.26enhancement account in the game and
55.27fish fund for only the purposes specified
55.28in Minnesota Statutes, section 297A.94,
55.29paragraph (e), clause (1).
55.30$1,223,000 the first year and $1,223,000 the
55.31second year are from the nongame wildlife
55.32management account in the natural resources
55.33fund for the purpose of nongame wildlife
55.34management. Notwithstanding Minnesota
55.35Statutes, section 290.431, $100,000 the first
56.1year and $100,000 the second year may
56.2be used for nongame wildlife information,
56.3education, and promotion.
56.4$2,500,000 the first year and $5,260,000 the
56.5second year are from the water management
56.6account in the natural resources fund to the
56.7commissioner of natural resources for the
56.8following activities:
56.9(1) installation of additional groundwater
56.10monitoring wells;
56.11(2) increased financial reimbursement
56.12and technical support to soil and water
56.13conservation districts or other local units
56.14of government for groundwater level
56.15monitoring;
56.16(3) additional surface water monitoring and
56.17analysis, including installation of monitoring
56.18gauges;
56.19(4) additional groundwater analysis to
56.20assist with water appropriation permitting
56.21decisions;
56.22(5) additional permit application review
56.23incorporating surface water and groundwater
56.24technical analysis;
56.25(6) enhancement of precipitation data and
56.26analysis to improve the use of irrigation; and
56.27(7) enhanced information technology,
56.28including electronic permitting and
56.29integrated data systems; and
56.30(8) increased compliance and monitoring.

Subd. 4.Forest Management

34,310,000

34,260,000

Appropriations by Fund
	2014	2015
General	21,900,000	21,850,000
Natural Resources	11,123,000	11,123,000
Game and Fish	1,287,000	1,287,000

57.4$7,145,000 the first year and $7,145,000
57.5the second year are for prevention,
57.6presuppression, and suppression costs of
57.7emergency firefighting and other costs
57.8incurred under Minnesota Statutes, section
57.988.12. The amount necessary to pay for
57.10presuppression and suppression costs during
57.11the biennium is appropriated from the general
57.12fund.
57.13By January 15 of each year, the commissioner
57.14of natural resources shall submit a report to
57.15the chairs and ranking minority members
57.16of the house and senate committees
57.17and divisions having jurisdiction over
57.18environment and natural resources finance,
57.19identifying all firefighting costs incurred
57.20and reimbursements received in the prior
57.21fiscal year. These appropriations may
57.22not be transferred. Any reimbursement
57.23of firefighting expenditures made to the
57.24commissioner from any source other than
57.25federal mobilizations shall be deposited into
57.26the general fund.
57.27$11,123,000 the first year and $11,123,000
57.28the second year are from the forest
57.29management investment account in the
57.30natural resources fund for only the purposes
57.31specified in Minnesota Statutes, section
57.3289.039, subdivision 2.
57.33$1,287,000 the first year and $1,287,000
57.34the second year are from the game and fish
57.35fund to advance ecological classification
58.1systems (ECS) scientific management tools
58.2for forest and invasive species management.
58.3This appropriation is from revenue deposited
58.4in the game and fish fund under Minnesota
58.5Statutes, section 297A.94, paragraph (e),
58.6clause (1).
58.7$580,000 the first year and $580,000 the
58.8second year are for the Forest Resources
58.9Council for implementation of the
58.10Sustainable Forest Resources Act.
58.11$250,000 the first year and $250,000 the
58.12second year are for the FORIST system.
58.13$50,000 the first year is for the development
58.14of a plan and recommendations, in
58.15consultation with the University of
58.16Minnesota, Department of Forest Resources,
58.17on utilizing the state forest nurseries
58.18to: insure the long-term availability of
58.19ecologically appropriate and genetically
58.20diverse native forest seed and seedlings
58.21to support state conservation projects and
58.22initiatives; protect the genetic fitness and
58.23resilience of native forest ecosystems; and
58.24support tree improvement research to address
58.25evolving pressures such as invasive species
58.26and climate change. By December 31, 2013,
58.27the commissioner shall submit a report with
58.28the plan and recommendations to the chairs
58.29and ranking minority members of the senate
58.30and house of representatives committees
58.31and divisions with jurisdiction over natural
58.32resources. The report shall address funding
58.33to improve state forest nursery and tree
58.34improvement capabilities. The report shall
58.35also provide updated recommendations from
59.1those contained in the budget and financial
59.2plan required under Laws 2011, First Special
59.3Session chapter 2, article 4, section 30.

Subd. 5.Parks and Trails Management

67,902,000

Appropriations by Fund
	2014	2015
General	20,130,000	20,130,000
Natural Resources	45,513,000	45,513,000
Game and Fish	2,259,000	2,259,000

59.10$1,075,000 the first year and $1,075,000 the
59.11second year are from the water recreation
59.12account in the natural resources fund for
59.13enhancing public water access facilities.
59.14This appropriation is not available until the
59.15commissioner develops and implements
59.16design standards and best management
59.17practices for public water access sites that
59.18maintain and improve water quality by
59.19avoiding shoreline erosion and runoff.
59.20$5,740,000 the first year and $5,740,000 the
59.21second year are from the natural resources
59.22fund for state trail, park, and recreation area
59.23operations. This appropriation is from the
59.24revenue deposited in the natural resources
59.25fund under Minnesota Statutes, section
59.26297A.94, paragraph (e), clause (2).
59.27$1,005,000 the first year and $1,005,000 the
59.28second year are from the natural resources
59.29fund for trail grants to local units of
59.30government on land to be maintained for at
59.31least 20 years for the purposes of the grants.
59.32This appropriation is from the revenue
59.33deposited in the natural resources fund
59.34under Minnesota Statutes, section 297A.94,
59.35paragraph (e), clause (4). Any unencumbered
60.1balance does not cancel at the end of the first
60.2year and is available for the second year.
60.3$8,424,000 the first year and $8,424,000
60.4the second year are from the snowmobile
60.5trails and enforcement account in the
60.6natural resources fund for the snowmobile
60.7grants-in-aid program. Any unencumbered
60.8balance does not cancel at the end of the first
60.9year and is available for the second year.
60.10$1,460,000 the first year and $1,460,000 the
60.11second year are from the natural resources
60.12fund for the off-highway vehicle grants-in-aid
60.13program. Of this amount, $1,210,000 each
60.14year is from the all-terrain vehicle account;
60.15$150,000 each year is from the off-highway
60.16motorcycle account; and $100,000 each year
60.17is from the off-road vehicle account. Any
60.18unencumbered balance does not cancel at the
60.19end of the first year and is available for the
60.20second year.
60.21$75,000 the first year and $75,000 the second
60.22year are from the cross country ski account
60.23in the natural resources fund for grooming
60.24and maintaining cross country ski trails in
60.25state parks, trails, and recreation areas.
60.26$350,000 the first year and $350,000 the
60.27second year are for prairie restorations in state
60.28parks and trails located in various parts of the
60.29state that are visible to the public under the
60.30pollinator habitat program established under
60.31new Minnesota Statutes, section 84.973.
60.32$250,000 the first year and $250,000 the
60.33second year are from the state land and
60.34water conservation account (LAWCON)
60.35in the natural resources fund for priorities
61.1established by the commissioner for eligible
61.2state projects and administrative and planning
61.3activities consistent with Minnesota Statutes,
61.484.0264, and the federal Land and Water
61.5Conservation Fund Act. Any unencumbered
61.6balance does not cancel at the end of the first
61.7year and is available for the second year.
61.8The appropriation in Laws 2009, chapter
61.937, article 1, section 4, subdivision 5, from
61.10the natural resources fund from the revenue
61.11deposited under Minnesota Statutes, section
61.12297A.94, paragraph (e), clause (4), for local
61.13grants is available until June 30, 2014.

Subd. 6.Fish and Wildlife Management

62,775,000

Appropriations by Fund
	2014	2015
Natural Resources	1,906,000	1,906,000
Game and Fish	60,869,000	60,869,000

61.19$8,167,000 the first year and $8,167,000
61.20the second year are from the heritage
61.21enhancement account in the game and fish
61.22fund only for activities specified in Minnesota
61.23Statutes, section 297A.94, paragraph (e),
61.24clause (1). Notwithstanding Minnesota
61.25Statutes, section 297A.94, five percent of
61.26this appropriation may be used for expanding
61.27hunter and angler recruitment and retention
61.28activities that emphasize the recruitment and
61.29retention of underrepresented groups.
61.30Notwithstanding Minnesota Statutes, section
61.3184.943, $13,000 the first year and $13,000
61.32the second year from the critical habitat
61.33private sector matching account may be used
61.34to publicize the critical habitat license plate
61.35match program.

Subd. 7.Enforcement

36,558,000

Appropriations by Fund
	2014	2015
General	5,375,000	5,375,000
Natural Resources	9,640,000	9,640,000
Game and Fish	21,443,000	21,443,000
Remediation	100,000	100,000

62.8$1,638,000 the first year and $1,638,000 the
62.9second year are from the general fund for
62.10enforcement efforts to prevent the spread of
62.11aquatic invasive species.
62.12$1,450,000 the first year and $1,450,000
62.13the second year are from the heritage
62.14enhancement account in the game and
62.15fish fund for only the purposes specified
62.16in Minnesota Statutes, section 297A.94,
62.17paragraph (e), clause (1).
62.18$250,000 the first year and $250,000 the
62.19second year are for the conservation officer
62.20pre-employment education program. Of this
62.21amount, $30,000 each year is from the water
62.22recreation account, $13,000 each year is
62.23from the snowmobile account, and $20,000
62.24each year is from the all-terrain vehicle
62.25account in the natural resources fund; and
62.26$187,000 each year is from the game and fish
62.27fund, of which $17,000 each year is from
62.28revenue deposited to the game and fish fund
62.29under Minnesota Statutes, section 297A.94,
62.30paragraph (e), clause (1).
62.31$1,082,000 the first year and $1,082,000 the
62.32second year are from the water recreation
62.33account in the natural resources fund for
62.34grants to counties for boat and water safety.
62.35Any unencumbered balance does not cancel
63.1at the end of the first year and is available for
63.2the second year.
63.3$315,000 the first year and $315,000 the
63.4second year are from the snowmobile
63.5trails and enforcement account in the
63.6natural resources fund for grants to local
63.7law enforcement agencies for snowmobile
63.8enforcement activities. Any unencumbered
63.9balance does not cancel at the end of the first
63.10year and is available for the second year.
63.11$250,000 the first year and $250,000 the
63.12second year are from the all-terrain vehicle
63.13account for grants to qualifying organizations
63.14to assist in safety and environmental
63.15education and monitoring trails on public
63.16lands under Minnesota Statutes, section
63.1784.9011. Grants issued under this paragraph:
63.18(1) must be issued through a formal
63.19agreement with the organization; and
63.20(2) must not be used as a substitute for
63.21traditional spending by the organization.
63.22By December 15 each year, an organization
63.23receiving a grant under this paragraph shall
63.24report to the commissioner with details on
63.25expenditures and outcomes from the grant.
63.26Of this appropriation, $25,000 each year
63.27is for administration of these grants. Any
63.28unencumbered balance does not cancel at the
63.29end of the first year and is available for the
63.30second year.
63.31$510,000 the first year and $510,000
63.32the second year are from the natural
63.33resources fund for grants to county law
63.34enforcement agencies for off-highway
63.35vehicle enforcement and public education
64.1activities based on off-highway vehicle use
64.2in the county. Of this amount, $498,000 each
64.3year is from the all-terrain vehicle account;
64.4$11,000 each year is from the off-highway
64.5motorcycle account; and $1,000 each year
64.6is from the off-road vehicle account. The
64.7county enforcement agencies may use
64.8money received under this appropriation
64.9to make grants to other local enforcement
64.10agencies within the county that have a high
64.11concentration of off-highway vehicle use.
64.12Of this appropriation, $25,000 each year
64.13is for administration of these grants. Any
64.14unencumbered balance does not cancel at the
64.15end of the first year and is available for the
64.16second year.
64.17$719,000 the first year and $719,000 the
64.18second year are for development and
64.19maintenance of a records management
64.20system capable of providing real time data
64.21with global positioning system information.
64.22Of this amount, $480,000 each year is from
64.23the general fund, $119,000 each year is
64.24from the game and fish fund, and $120,000
64.25each year is from the heritage enhancement
64.26account in the game and fish fund.
64.27$1,000,000 the first year and $1,000,000 the
64.28second year are for grants to local units of
64.29government to prevent the spread of aquatic
64.30invasive species, including inspection and
64.31decontamination programs.

Subd. 8.Operations Support

938,000

1,259,000

Appropriations by Fund
	2014	2015
General Fund	318,000	639,000
Natural Resources	320,000	320,000
Special Revenue Fund	300,000	300,000

65.4$320,000 the first year and $320,000 the
65.5second year are from the natural resources
65.6fund for grants to be divided equally between
65.7the city of St. Paul for the Como Park Zoo
65.8and Conservatory and the city of Duluth
65.9for the Duluth Zoo. This appropriation
65.10is from the revenue deposited to the fund
65.11under Minnesota Statutes, section 297A.94,
65.12paragraph (e), clause (5).
65.13$300,000 the first year and $300,000 the
65.14second year are from the special revenue fund
65.15to improve data analytics. The commissioner
65.16may bill the divisions of the agency an
65.17appropriate share of costs associated with
65.18this project. Any information technology
65.19development, support, or costs necessary for
65.20this project shall be incorporated into the
65.21agency's service level agreement with and
65.22paid to the Office of Enterprise Technology.

Sec. 5. BOARD OF WATER AND SOIL
RESOURCES

13,472,000

13,502,000

65.25$3,423,000 the first year and $3,423,000 the
65.26second year are for natural resources block
65.27grants to local governments. Grants must be
65.28matched with a combination of local cash or
65.29in-kind contributions. The base grant portion
65.30related to water planning must be matched
65.31by an amount as specified by Minnesota
65.32Statutes, section 103B.3369. The board may
65.33reduce the amount of the natural resources
65.34block grant to a county by an amount equal to
65.35any reduction in the county's general services
66.1allocation to a soil and water conservation
66.2district from the county's previous year
66.3allocation when the board determines that
66.4the reduction was disproportionate.
66.5$3,116,000 the first year and $3,116,000
66.6the second year are for grants requested
66.7by soil and water conservation districts for
66.8general purposes, nonpoint engineering, and
66.9implementation of the reinvest in Minnesota
66.10reserve program. Upon approval of the
66.11board, expenditures may be made from these
66.12appropriations for supplies and services
66.13benefiting soil and water conservation
66.14districts. Any district requesting a grant
66.15under this paragraph shall maintain a Web
66.16page that publishes, at a minimum, its annual
66.17report, annual audit, annual budget, and
66.18meeting notices and minutes.
66.19$1,602,000 the first year and $1,662,000 the
66.20second year are for the following cost-share
66.21programs:
66.22(1) $302,000 each year is for feedlot water
66.23quality grants for feedlots under 300 animal
66.24units in areas where there are impaired
66.25waters;
66.26(2) $1,200,000 each year is for soil and water
66.27conservation districts cost-sharing contracts
66.28for erosion control, nutrient and manure
66.29management, vegetative buffers, and water
66.30quality management; and
66.31(3) $100,000 each year is for county
66.32cooperative weed management programs and
66.33to restore native plants in selected invasive
66.34species management sites by providing local
67.1native seeds and plants to landowners for
67.2implementation.
67.3The board shall submit a report to the
67.4commissioner of the Pollution Control
67.5Agency on the status of subsurface sewage
67.6treatment systems in order to ensure a single,
67.7comprehensive inventory of the systems for
67.8planning purposes.
67.9$386,000 the first year and $386,000
67.10the second year are for implementation,
67.11enforcement, and oversight of the Wetland
67.12Conservation Act.
67.13$166,000 the first year and $166,000
67.14the second year are to provide technical
67.15assistance to local drainage management
67.16officials and for the costs of the Drainage
67.17Work Group.
67.18$100,000 the first year and $100,000
67.19the second year are for a grant to the
67.20Red River Basin Commission for water
67.21quality and floodplain management,
67.22including administration of programs. This
67.23appropriation must be matched by nonstate
67.24funds. If the appropriation in either year is
67.25insufficient, the appropriation in the other
67.26year is available for it.
67.27$120,000 the first year and $60,000
67.28the second year are for grants to Area II
67.29Minnesota River Basin Projects for floodplain
67.30management. The area shall transition to a
67.31watershed district by July 1, 2015.
67.32Notwithstanding Minnesota Statutes, section
67.33103C.501, the board may shift cost-share
67.34funds in this section and may adjust the
68.1technical and administrative assistance
68.2portion of the grant funds to leverage
68.3federal or other nonstate funds or to address
68.4high-priority needs identified in local water
68.5management plans or comprehensive water
68.6management plans.
68.7$450,000 the first year and $450,000 the
68.8second year are for assistance and grants to
68.9local governments to transition local water
68.10management plans to a watershed approach
68.11as provided for in Minnesota Statutes,
68.12chapters 103B, 103C, 103D, and 114D.
68.13$125,000 the first year and $125,000 the
68.14second year are to implement internal control
68.15policies and provide related oversight and
68.16accountability for agency programs.
68.17$310,000 the first year and $310,000 the
68.18second year are to evaluate performance,
68.19financial, and activity information for local
68.20water management entities as prescribed in
68.21Minnesota Statutes, section 103B.102.
68.22The appropriations for grants in this
68.23section are available until expended. If an
68.24appropriation for grants in either year is
68.25insufficient, the appropriation in the other
68.26year is available for it.

Sec. 6. METROPOLITAN COUNCIL

8,890,000

Appropriations by Fund
	2014	2015
General	3,220,000	3,220,000
Natural Resources	5,670,000	5,670,000

68.32$2,870,000 the first year and $2,870,000 the
68.33second year are for metropolitan area regional
69.1parks operation and maintenance according
69.2to Minnesota Statutes, section 473.351.
69.3$5,670,000 the first year and $5,670,000 the
69.4second year are from the natural resources
69.5fund for metropolitan area regional parks
69.6and trails maintenance and operations. This
69.7appropriation is from the revenue deposited
69.8in the natural resources fund under Minnesota
69.9Statutes, section 297A.94, paragraph (e),
69.10clause (3).
69.11$350,000 the first year and $350,000 the
69.12second year are for grants to implementing
69.13agencies to acquire and install solar energy
69.14panels made in Minnesota in metropolitan
69.15regional parks and trails. An implementing
69.16agency receiving a grant under this
69.17appropriation shall provide signage near
69.18the solar equipment installed that provides
69.19education on solar energy.

Sec. 7. CONSERVATION CORPS
MINNESOTA

945,000

Appropriations by Fund
	2014	2015
General	455,000	455,000
Natural Resources	490,000	490,000

69.26Conservation Corps Minnesota may receive
69.27money appropriated from the natural
69.28resources fund under this section only
69.29as provided in an agreement with the
69.30commissioner of natural resources.

Sec. 8. ZOOLOGICAL BOARD

5,637,000

5,690,000

Appropriations by Fund
	2014	2015
General	5,477,000	5,530,000
Natural Resources	160,000	160,000

70.3$160,000 the first year and $160,000 the
70.4second year are from the natural resources
70.5fund from the revenue deposited under
70.6Minnesota Statutes, section 297A.94,
70.7paragraph (e), clause (5).

70.8ARTICLE 4

70.9ENVIRONMENT AND NATURAL RESOURCES POLICY

70.10    Section 1. Minnesota Statutes 2012, section 13.7411, subdivision 4, is amended to read:
70.11    Subd. 4. Waste management. (a) Product stewardship programs. Trade secret
70.12information submitted to the Pollution Control Agency under product stewardship
70.13programs are classified under sections 115A.141 to 115A.142.
70.14(b) Transfer station data. Data received by a county or district from a transfer
70.15station under section 115A.84, subdivision 5, are classified under that section.
70.16~~(b)~~ (c) Solid waste records. Records of solid waste facilities received, inspected,
70.17or copied by a county pursuant to section 115A.882 are classified pursuant to section
70.18115A.882, subdivision 3 .
70.19~~(c)~~ (d) Customer lists. Customer lists provided to counties or cities by solid waste
70.20collectors are classified under section 115A.93, subdivision 5.

70.21    Sec. 2. Minnesota Statutes 2012, section 84.027, is amended by adding a subdivision
70.22to read:
70.23    Subd. 19. Federal law compliance. Notwithstanding any law to the contrary,
70.24the commissioner may establish, by written order, policies for the use and operation of
70.25other power-driven mobility devices, as defined under Code of Federal Regulations, title
70.2628, section 35.104, on lands and in facilities administered by the commissioner for the
70.27purposes of implementing the Americans with Disabilities Act, United States Code, title
70.2842, section 12101 et seq. These policies are exempt from the rulemaking provisions of
70.29chapter 14 and section 14.386 does not apply.

70.30    Sec. 3. [84.633] EXCHANGE OF ROAD EASEMENTS.
70.31    Subdivision 1. Authority. The commissioner of natural resources, on behalf of
70.32the state, may convey a road easement according to this section for access across state
70.33land under the commissioner's jurisdiction in exchange for a road easement for access to
71.1property owned by the United States, the state of Minnesota or any of its subdivisions, or a
71.2private party. The exercise of the easement across state land must not cause significant
71.3adverse environmental or natural resources management impacts.
71.4    Subd. 2. Substantially equal acres. The acres covered by the state easement
71.5conveyed by the commissioner must be substantially equal to the acres covered by the
71.6easement being received by the commissioner. For purposes of this section, "substantially
71.7equal" means that the acres do not differ by more than 20 percent. The commissioner's
71.8finding of substantially equal acres is in lieu of an appraisal or other determination of
71.9value of the lands.
71.10    Subd. 3. School trust lands. If the commissioner conveys a road easement over
71.11school trust land to a nongovernmental entity, the term of the road easement is limited
71.12to 50 years. The easement exchanged with the state may be limited to 50 years or may
71.13be perpetual.
71.14    Subd. 4. Terms and conditions. The commissioner may impose terms and
71.15conditions of use as necessary and appropriate under the circumstances. The state may
71.16accept an easement with similar terms and conditions as the state easement.
71.17    Subd. 5. Survey. If the commissioner determines that a survey is required, the
71.18governmental unit or private landowner shall pay to the commissioner a survey fee of not
71.19less than one half of the cost of the survey as determined by the commissioner.
71.20    Subd. 6. Application fee. When a private landowner or governmental unit, except
71.21the state, presents to the commissioner an offer to exchange road easements, the private
71.22landowner or governmental unit shall pay an application fee as provided under section
71.2384.63 to cover reasonable costs for reviewing the application and preparing the easements.
71.24    Subd. 7. Title. If the commissioner determines it is necessary to obtain an opinion
71.25as to the title of the land being encumbered by the easement that will be received by the
71.26commissioner, the governmental unit or private landowner shall submit an abstract of title
71.27or other title information sufficient to determine possession of the land, improvements,
71.28liens, encumbrances, and other matters affecting title.
71.29    Subd. 8. Disposition of fees. (a) Any fee paid under subdivision 5 must be credited
71.30to the account from which expenses are or will be paid and the fee is appropriated for the
71.31expenditures in the same manner as other money in the account.
71.32(b) Any fee paid under subdivision 6 must be deposited in the land management
71.33account in the natural resources fund and is appropriated to the commissioner to cover the
71.34reasonable costs incurred for preparing and issuing the state road easement and accepting
71.35the road easement from the private landowner or governmental entity.

72.1    Sec. 4. Minnesota Statutes 2012, section 84.82, is amended by adding a subdivision to
72.2read:
72.3    Subd. 2a. Limited nontrail use registration. A snowmobile may be registered for
72.4limited nontrail use. A snowmobile registered under this subdivision may be used solely
72.5for transportation on the frozen surface of public water for purposes of ice fishing and may
72.6not otherwise be operated on a state or grant-in-aid snowmobile trail. The fee for a limited
72.7nontrail use registration is $45 for three years. A limited nontrail use registration is not
72.8transferable. In addition to other penalties prescribed by law, the penalty for violation of
72.9this subdivision is immediate revocation of the limited nontrail use registration. The
72.10commissioner shall ensure that the registration sticker provided for limited nontrail use is
72.11of a different color and is distinguishable from other snowmobile registration and state
72.12trail stickers provided.

72.13    Sec. 5. [84.973] POLLINATOR HABITAT PROGRAM.
72.14(a) The commissioner shall develop best management practices and habitat
72.15restoration guidelines for pollinator habitat enhancement. Best management practices
72.16and guidelines developed under this section must be used for all projects on state lands
72.17and must be a condition of any contract for habitat enhancement or restoration of lands
72.18under the commissioner's control.
72.19(b) Prairie restorations must include an appropriate diversity of native species
72.20selected to provide habitat for pollinators throughout the growing season.

72.21    Sec. 6. Minnesota Statutes 2012, section 84D.108, subdivision 2, is amended to read:
72.22    Subd. 2. Permit requirements. (a) Service providers must complete invasive
72.23species training provided by the commissioner and pass an examination to qualify for a
72.24permit. Service provider permits are valid for three calendar years.
72.25(b) A $50 application and testing fee is required for service provider permit
72.26applications.
72.27(c) Persons working for a permittee must satisfactorily complete aquatic invasive
72.28species-related training provided by the commissioner, except as provided under
72.29paragraph (d).
72.30(d) A person working for and supervised by a permittee is not required to complete
72.31the training under paragraph (c) if the water-related equipment or other water-related
72.32structures remain on the riparian property owned or controlled by the permittee and are
72.33only removed from and placed into the same water of the state.

73.1    Sec. 7. Minnesota Statutes 2012, section 85.015, subdivision 13, is amended to read:
73.2    Subd. 13. Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton,
73.3Koochiching, and Itasca Counties. (a)(1) The Taconite Trail shall originate at Ely in St.
73.4Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to
73.5McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in
73.6Itasca County and there terminate;
73.7(2) The C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County
73.8and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand
73.9Marais in Cook County, thence northeasterly to the international boundary in the vicinity
73.10of the north shore of Lake Superior, and there terminate;
73.11(3) The Grand Marais to International Falls Trail shall originate in Grand Marais
73.12in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area,
73.13to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to
73.14Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St.
73.15Louis County to International Falls in Koochiching County, and there terminate;
73.16(4) The Matthew Lourey Trail shall originate in Duluth in St. Louis County and
73.17extend southerly to ~~St. Croix~~ Chengwatana State Forest in Pine County.
73.18(b) The trails shall be developed primarily for riding and hiking.
73.19(c) In addition to the authority granted in subdivision 1, lands and interests in lands
73.20for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring
73.21any land or interest in land by eminent domain the commissioner of administration shall
73.22obtain the approval of the governor. The governor shall consult with the Legislative
73.23Advisory Commission before granting approval. Recommendations of the Legislative
73.24Advisory Commission shall be advisory only. Failure or refusal of the commission to
73.25make a recommendation shall be deemed a negative recommendation.

73.26    Sec. 8. Minnesota Statutes 2012, section 85.052, subdivision 6, is amended to read:
73.27    Subd. 6. State park reservation system. (a) The commissioner may, by written
73.28order, develop reasonable reservation policies for campsites and other lodging. These
73.29policies are exempt from rulemaking provisions under chapter 14 and section 14.386
73.30does not apply.
73.31(b) The revenue collected from the state park reservation fee established under
73.32subdivision 5, including interest earned, shall be deposited in the state park account in the
73.33natural resources fund and is annually appropriated to the commissioner for the cost of
73.34the state park reservation system.
73.35EFFECTIVE DATE.This section is effective retroactively from March 1, 2012.

74.1    Sec. 9. Minnesota Statutes 2012, section 85.054, is amended by adding a subdivision
74.2to read:
74.3    Subd. 18. La Salle Lake State Recreation Area. A state park permit is not
74.4required and a fee may not be charged for motor vehicle entry, use, or parking in La Salle
74.5Lake State Recreation Area unless the occupants of the vehicle enter, use, or park in a
74.6developed campground or day-use area.

74.7    Sec. 10. Minnesota Statutes 2012, section 85.055, subdivision 1, is amended to read:
74.8    Subdivision 1. Fees. The fee for state park permits for:
74.9(1) an annual use of state parks is $25;
74.10(2) a second or subsequent vehicle state park permit is $18;
74.11(3) a state park permit valid for one day is $5;
74.12(4) a daily vehicle state park permit for groups is $3;
74.13(5) an annual permit for motorcycles is $20;
74.14(6) an employee's state park permit is without charge; and
74.15(7) a state park permit for disabled persons under section 85.053, subdivision 7,
74.16clauses (1) ~~and (2)~~ to (3), is $12.
74.17The fees specified in this subdivision include any sales tax required by state law.

74.18    Sec. 11. Minnesota Statutes 2012, section 85.055, subdivision 2, is amended to read:
74.19    Subd. 2. Fee deposit and appropriation. The fees collected under this section shall
74.20be deposited in the natural resources fund and credited to the state parks account. Money
74.21in the account, except for the electronic licensing system commission established by the
74.22commissioner under section 84.027, subdivision 15, and the state park reservation system
74.23fee established by the commissioner under section 85.052, subdivisions 5 and 6, is available
74.24for appropriation to the commissioner to operate and maintain the state park system.

74.25    Sec. 12. Minnesota Statutes 2012, section 85.42, is amended to read:
74.2685.42 USER FEE; VALIDITY.
74.27(a) The fee for an annual cross-country ski pass is $19 for an individual age 16 and
74.28over. The fee for a three-year pass is $54 for an individual age 16 and over. This fee
74.29shall be collected at the time the pass is purchased. Three-year passes are valid for three
74.30years beginning the previous July 1. Annual passes are valid for one year beginning
74.31the previous July 1.
75.1(b) The cost for a daily cross-country skier pass is $5 for an individual age 16 and
75.2over. This fee shall be collected at the time the pass is purchased. The daily pass is valid
75.3only for the date designated on the pass form.
75.4(c) A pass must be signed by the skier across the front of the pass to be valid and
75.5becomes nontransferable on signing.
75.6(d) The commissioner and agents shall issue a duplicate pass to a person whose pass
75.7is lost or destroyed, using the process established under section 97A.405, subdivision 3,
75.8and rules adopted thereunder. The fee for a duplicate cross-country ski pass is $2.

75.9    Sec. 13. Minnesota Statutes 2012, section 89.0385, is amended to read:
75.1089.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST
75.11CERTIFICATION.
75.12(a) ~~After each fiscal year,~~ The commissioner shall certify the total costs incurred for
75.13forest management, forest improvement, and road improvement on state-managed lands
75.14during that year. The commissioner shall distribute forest management receipts credited to
75.15various accounts according to this section.
75.16(b) The amount of the certified costs incurred for forest management activities on
75.17state lands shall be transferred from the account where receipts are deposited to the forest
75.18management investment account in the natural resources fund, except for those costs
75.19certified under section 16A.125. Transfers may occur quarterly, based on quarterly cost and
75.20revenue reports, throughout the fiscal year, with final certification and reconciliation after
75.21each fiscal year. Transfers in a fiscal year cannot exceed receipts credited to the account.

75.22    Sec. 14. Minnesota Statutes 2012, section 89.17, is amended to read:
75.2389.17 LEASES AND PERMITS.
75.24(a) Notwithstanding the permit procedures of chapter 90, the commissioner shall
75.25have power to grant and execute, in the name of the state, leases and permits for the use of
75.26any forest lands under the authority of the commissioner for any purpose which in the
75.27commissioner's opinion is not inconsistent with the maintenance and management of the
75.28forest lands, on forestry principles for timber production. Every such lease or permit shall
75.29be revocable at the discretion of the commissioner at any time subject to such conditions
75.30as may be agreed on in the lease. The approval of the commissioner of administration
75.31shall not be required upon any such lease or permit. No such lease or permit for a period
75.32exceeding 21 years shall be granted except with the approval of the Executive Council.
75.33(b) Public access to the leased land for outdoor recreation shall be the same as
75.34access would be under state management.
76.1(c) The commissioner shall, by written order, establish the schedule of application
76.2fees for all leases issued under this section. Notwithstanding section 16A.1285, subdivision
76.32, the application fees shall be set at a rate that neither significantly overrecovers nor
76.4underrecovers costs, including overhead costs, involved in providing the services at the
76.5time of issuing the leases. The commissioner shall update the schedule of application fees
76.6every five years. The schedule of application fees and any adjustment to the schedule are
76.7not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.
76.8(d) Money received under paragraph (c) must be deposited in the land management
76.9account in the natural resources fund and is appropriated to the commissioner to cover the
76.10reasonable costs incurred for issuing leases.
76.11(e) Notwithstanding section 16A.125, subdivision 5, after deducting the ~~reasonable~~
76.12~~costs incurred for preparing and issuing the lease~~ application fee paid according to
76.13paragraph (c), all remaining proceeds from the leasing of school trust land and university
76.14land for roads on forest lands must be deposited into the respective permanent fund for
76.15the lands.

76.16    Sec. 15. Minnesota Statutes 2012, section 90.01, subdivision 4, is amended to read:
76.17    Subd. 4. Scaler. "Scaler" means a qualified bonded person designated by the
76.18commissioner to measure timber and cut forest products.

76.19    Sec. 16. Minnesota Statutes 2012, section 90.01, subdivision 5, is amended to read:
76.20    Subd. 5. State appraiser. "State appraiser" means an employee of the department
76.21designated by the commissioner to appraise state lands, which includes, but is not limited
76.22to, timber and other forest resource products, for volume, quality, and value.

76.23    Sec. 17. Minnesota Statutes 2012, section 90.01, subdivision 6, is amended to read:
76.24    Subd. 6. Timber. "Timber" means trees, shrubs, or woody plants, that will produce
76.25forest products of value whether standing or down, and including but not limited to logs,
76.26sawlogs, posts, poles, bolts, pulpwood, cordwood, fuelwood, woody biomass, lumber,
76.27 and woody decorative material.

76.28    Sec. 18. Minnesota Statutes 2012, section 90.01, subdivision 8, is amended to read:
76.29    Subd. 8. Permit holder. "Permit holder" means the person ~~holding~~ who is the
76.30signatory of a permit to cut timber on state lands.

76.31    Sec. 19. Minnesota Statutes 2012, section 90.01, subdivision 11, is amended to read:
77.1    Subd. 11. Effective permit. "Effective permit" means a permit for which the
77.2commissioner has on file full or partial ~~surety~~ security as required by section 90.161, or
77.3 90.162, ~~90.163, or~~ ~~90.173~~ or, in the case of permits issued according to section 90.191 or
77.490.195 , the commissioner has received a down payment equal to the full appraised value.

77.5    Sec. 20. Minnesota Statutes 2012, section 90.031, subdivision 4, is amended to read:
77.6    Subd. 4. Timber rules. The Executive Council may formulate and establish, from
77.7time to time, rules it deems advisable for the transaction of timber business of the state,
77.8including approval of the sale of timber on any tract in a lot exceeding ~~6,000~~ 12,000 cords
77.9in volume when the sale is in the best interests of the state, and may abrogate, modify,
77.10or suspend rules at its pleasure.

77.11    Sec. 21. Minnesota Statutes 2012, section 90.041, subdivision 2, is amended to read:
77.12    Subd. 2. Trespass on state lands. The commissioner may compromise and settle,
77.13with ~~the approval of~~ notification to the attorney general, upon terms the commissioner
77.14deems just, any claim of the state for casual and involuntary trespass upon state lands or
77.15timber; provided that no claim shall be settled for less than the full value of all timber
77.16or other materials taken in casual trespass or the full amount of all actual damage or
77.17loss suffered by the state as a result. Upon request, the commissioner shall advise the
77.18Executive Council of any information acquired by the commissioner concerning any
77.19trespass on state lands, giving all details and names of witnesses and all compromises and
77.20settlements made under this subdivision.

77.21    Sec. 22. Minnesota Statutes 2012, section 90.041, subdivision 5, is amended to read:
77.22    Subd. 5. Forest improvement contracts. The commissioner may contract as part
77.23of the timber sale with the purchaser of state timber at either informal or auction sale
77.24for ~~the following~~ forest improvement work to be done on the land included within the
77.25sale area:. Forest improvement work may include activities relating to preparation of
77.26the site for seeding or planting of seedlings or trees, seeding or planting of seedlings or
77.27trees, and other activities ~~relating~~ related to forest regeneration or deemed necessary by
77.28the commissioner to accomplish forest management objectives, including those related
77.29to water quality protection, trail development, and wildlife habitat enhancement. A
77.30contract issued under this subdivision is not subject to the competitive bidding provisions
77.31of chapter 16C and is exempt from the contract approval provisions of section 16C.05,
77.32subdivision 2 . The bid value received in the sale of the timber and the contract bid
77.33cost of the improvement work may be combined and the total value may be considered
78.1by the commissioner in awarding forest improvement contracts under this section.
78.2The commissioner may refuse to accept any and all bids received and cancel a forest
78.3improvement contract sale for good and sufficient reasons.

78.4    Sec. 23. Minnesota Statutes 2012, section 90.041, subdivision 6, is amended to read:
78.5    Subd. 6. Sale of damaged timber. The commissioner may sell at public auction
78.6timber that has been damaged by fire, windstorm, flood, insect, disease, or other natural
78.7cause on notice that the commissioner considers reasonable when there is a high risk that
78.8the salvage value of the timber would be lost.

78.9    Sec. 24. Minnesota Statutes 2012, section 90.041, subdivision 9, is amended to read:
78.10    Subd. 9. Reoffering unsold timber. ~~To maintain and enhance forest ecosystems on~~
78.11~~state forest lands,~~ The commissioner may reoffer timber tracts remaining unsold under the
78.12provisions of section 90.101 below appraised value at public auction with the required
78.1330-day notice under section 90.101, subdivision 2.

78.14    Sec. 25. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
78.15to read:
78.16    Subd. 10. Fees. (a) The commissioner may establish a fee schedule that covers the
78.17commissioner's cost of issuing, administering, and processing various permits, permit
78.18modifications, transfers, assignments, amendments, and other transactions necessary to the
78.19administration of activities under this chapter.
78.20(b) A fee established under this subdivision is not subject to the rulemaking
78.21provisions of chapter 14 and section 14.386 does not apply. The commissioner may
78.22establish fees under this subdivision notwithstanding section 16A.1283.

78.23    Sec. 26. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
78.24to read:
78.25    Subd. 11. Debarment. The commissioner may debar a permit holder if the holder
78.26is convicted in Minnesota at the gross misdemeanor or felony level of criminal willful
78.27trespass, theft, fraud, or antitrust violation involving state, federal, county, or privately
78.28owned timber in Minnesota or convicted in any other state involving similar offenses and
78.29penalties for timber owned in that state. The commissioner shall cancel and repossess the
78.30permit directly involved in the prosecution of the crime. The commissioner shall cancel
78.31and repossess all other state timber permits held by the permit holder after taking from
78.32all security deposits money to which the state is entitled. The commissioner shall return
79.1the remainder of the security deposits, if any, to the permit holder. The debarred permit
79.2holder is prohibited from bidding, possessing, or being employed on any state timber
79.3permit during the period of debarment. The period of debarment is not less than one year
79.4or greater than three years. The duration of the debarment is based on the severity of the
79.5violation, past history of compliance with timber permits, and the amount of loss incurred
79.6by the state arising from violations of timber permits.

79.7    Sec. 27. Minnesota Statutes 2012, section 90.045, is amended to read:
79.890.045 APPRAISAL STANDARDS.
79.9By July 1, 1983, the commissioner shall establish specific timber appraisal standards
79.10according to which all timber appraisals will be conducted under this chapter. The
79.11standards shall include a specification of the maximum allowable appraisal sampling error,
79.12~~and~~ including the procedures for tree defect allowance, tract area estimation, product
79.13volume estimation, and product value determination. The timber appraisal standards shall
79.14be included in each edition of the timber sales manual published by the commissioner. In
79.15addition to the duties pursuant to section 90.061, every state appraiser shall work within
79.16the guidelines of the timber appraisal standards. The standards shall not be subject to
79.17the rulemaking provisions of chapter 14.

79.18    Sec. 28. Minnesota Statutes 2012, section 90.061, subdivision 8, is amended to read:
79.19    Subd. 8. Appraiser authority; form of documents. State appraisers are
79.20empowered, with the consent of the commissioner, to perform any scaling, and generally
79.21to supervise the cutting and removal of timber and forest products on or from state lands
79.22so far as may be reasonably necessary to insure compliance with the terms of the permits
79.23or other contracts governing the same and protect the state from loss.
79.24The form of appraisal reports, records, and notes to be kept by state appraisers
79.25shall be as the commissioner prescribes.

79.26    Sec. 29. Minnesota Statutes 2012, section 90.101, subdivision 1, is amended to read:
79.27    Subdivision 1. Sale requirements. The commissioner may sell the timber on any
79.28tract of state land and may determine the number of sections or fractional sections of land
79.29to be included in the permit area covered by any one permit issued to the purchaser of
79.30timber on state lands, or in any one contract or other instrument relating thereto. No
79.31timber shall be sold, except (1) to the highest responsible bidder at public auction, or
79.32(2) if unsold at public auction, the commissioner may offer the timber for private sale
79.33for a period of no more than ~~six months~~ one year after the public auction to any ~~person~~
80.1 responsible bidder who pays the appraised value for the timber. The minimum price shall
80.2be the appraised value as fixed by the report of the state appraiser. Sales may include tracts
80.3in more than one contiguous county or forestry administrative area and shall be held either
80.4in the county or forestry administrative area in which the tract is located or in an adjacent
80.5county or forestry administrative area that is nearest the tract offered for sale or that is
80.6most accessible to potential bidders. In adjoining counties or forestry administrative areas,
80.7sales may not be held less than two hours apart.

80.8    Sec. 30. Minnesota Statutes 2012, section 90.121, is amended to read:
80.990.121 INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000
80.10CORDS.
80.11(a) The commissioner may sell the timber on any tract of state land in lots not
80.12exceeding 3,000 cords in volume, in the same manner as timber sold at public auction under
80.13section 90.101, and related laws, subject to the following special exceptions and limitations:
80.14(1) the commissioner shall offer all tracts authorized for sale by this section
80.15separately from the sale of tracts of state timber made pursuant to section 90.101;
80.16(2) no bidder may be awarded more than 25 percent of the total tracts offered at the
80.17first round of bidding unless fewer than four tracts are offered, in which case not more than
80.18one tract shall be awarded to one bidder. Any tract not sold at public auction may be offered
80.19for private sale as authorized by section 90.101, subdivision 1, 30 days after the auction to
80.20~~persons~~ responsible bidders eligible under this section at the appraised value; and
80.21(3) no sale may be made to a ~~person~~ responsible bidder having more than 30
80.22employees. For the purposes of this clause, "employee" means an individual working in
80.23the timber or wood products industry for salary or wages on a full-time or part-time basis.
80.24(b) The auction sale procedure set forth in this section constitutes an additional
80.25alternative timber sale procedure available to the commissioner and is not intended to
80.26replace other authority possessed by the commissioner to sell timber in lots of 3,000
80.27cords or less.
80.28(c) Another bidder or the commissioner may request that the number of employees a
80.29bidder has pursuant to paragraph (a), clause (3), be confirmed by signed affidavit if there is
80.30evidence that the bidder may be ineligible due to exceeding the employee threshold. The
80.31commissioner shall request information from the commissioners of labor and industry and
80.32employment and economic development including the premiums paid by the bidder in
80.33question for workers' compensation insurance coverage for all employees of the bidder.
80.34The commissioner shall review the information submitted by the commissioners of labor
80.35and industry and employment and economic development and make a determination based
81.1on that information as to whether the bidder is eligible. A bidder is considered eligible and
81.2may participate in intermediate auctions until determined ineligible under this paragraph.

81.3    Sec. 31. Minnesota Statutes 2012, section 90.145, is amended to read:
81.490.145 PURCHASER QUALIFICATIONS ~~AND~~, REGISTRATION, AND
81.5REQUIREMENTS.
81.6    Subdivision 1. Purchaser ~~qualifications~~ requirements. (a) In addition to any other
81.7requirements imposed by this chapter, the purchaser of a state timber permit issued under
81.8section 90.151 must meet the requirements in paragraphs (b) to ~~(d)~~ (e).
81.9(b) The purchaser ~~and~~ or the purchaser's agents, employees, subcontractors, and
81.10assigns conducting logging operations on the timber permit must comply with general
81.11industry safety standards for logging adopted by the commissioner of labor and industry
81.12under chapter 182. The commissioner of natural resources ~~shall~~ may require a purchaser
81.13to provide proof of compliance with the general industry safety standards.
81.14(c) The purchaser ~~and~~ or the purchaser's agents, subcontractors, and assigns
81.15conducting logging operations on the timber permit must comply with the mandatory
81.16insurance requirements of chapter 176. The commissioner ~~shall~~ may require a purchaser
81.17to provide a copy of the proof of insurance required by section 176.130 before the start of
81.18harvesting operations on any permit.
81.19(d) Before the start of harvesting operations on any permit, the purchaser must certify
81.20that a foreperson or other designated employee who has a current certificate of completion,
81.21 which includes instruction in site-level forest management guidelines or best management
81.22practices, from the Minnesota Logger Education Program (MLEP), the Wisconsin Forest
81.23Industry Safety and Training Alliance (FISTA), or any similar continuous education
81.24program acceptable to the commissioner, is supervising active logging operations.
81.25(e) The purchaser and the purchaser's agents, employees, subcontractors, and assigns
81.26who will be involved with logging or scaling state timber must be in compliance with
81.27this chapter.
81.28    Subd. 2. Purchaser ~~preregistration~~ registration. To facilitate the sale of permits
81.29issued under section 90.151, the commissioner may establish a ~~purchaser preregistration~~
81.30 registration system to verify the qualifications of a person as a responsible bidder to
81.31purchase a timber permit. Any system implemented by the commissioner shall be limited
81.32in scope to only that information that is required for the efficient administration of the
81.33purchaser qualification ~~provisions~~ requirements of this chapter ~~and shall conform with the~~
81.34~~requirements of chapter 13.~~ The registration system established under this subdivision is
81.35not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.

82.1    Sec. 32. Minnesota Statutes 2012, section 90.151, subdivision 1, is amended to read:
82.2    Subdivision 1. Issuance; expiration. (a) Following receipt of the down payment
82.3for state timber required under section 90.14 or 90.191, the commissioner shall issue a
82.4numbered permit to the purchaser, in a form approved by the attorney general, by the
82.5terms of which the purchaser shall be authorized to enter upon the land, and to cut and
82.6remove the timber therein described as designated for cutting in the report of the state
82.7appraiser, according to the provisions of this chapter. The permit shall be correctly
82.8dated and executed by the commissioner and signed by the purchaser. If a permit is not
82.9signed by the purchaser within 60 45 days from the date of purchase, the permit cancels
82.10and the down payment for timber required under section 90.14 forfeits to the state. The
82.11commissioner may grant an additional period for the purchaser to sign the permit, not to
82.12exceed ~~five~~ ten business days, provided the purchaser pays a ~~$125~~ $200 penalty fee.
82.13    (b) The permit shall expire no later than five years after the date of sale as the
82.14commissioner shall specify or as specified under section 90.191, and the timber shall
82.15be cut and removed within the time specified therein. ~~All cut timber, equipment, and~~
82.16~~buildings not removed from the land within 90 days after expiration of the permit shall~~
82.17~~become the property of the state.~~ If additional time is needed, the permit holder must
82.18request, prior to the expiration date, and may be granted, for good and sufficient reasons,
82.19up to 90 additional days for the completion of skidding, hauling, and removing all
82.20equipment and buildings. All cut timber, equipment, and buildings not removed from the
82.21land after expiration of the permit becomes the property of the state.
82.22    (c) The commissioner may grant an additional period of time not to exceed ~~120~~ 240
82.23 days for the removal of cut timber, equipment, and buildings upon receipt of ~~such~~ a written
82.24 request by the permit holder for good and sufficient reasons. ~~The commissioner may grant~~
82.25~~a second period of time not to exceed 120 days for the removal of cut timber, equipment,~~
82.26~~and buildings upon receipt of a request by the permit holder for hardship reasons only.~~
82.27 The permit holder may combine in the written request under this paragraph the request
82.28for additional time under paragraph (b).

82.29    Sec. 33. Minnesota Statutes 2012, section 90.151, subdivision 2, is amended to read:
82.30    Subd. 2. Permit requirements. The permit shall state the amount of timber
82.31estimated for cutting on the land, the estimated value thereof, and the price at which it is
82.32sold in units of per thousand feet, per cord, per piece, per ton, or by whatever description
82.33sold, and shall specify that all landings of cut products shall be legibly marked with the
82.34assigned permit number. The permit shall provide for the continuous identification
82.35and control of the cut timber from the time of cutting until delivery to the consumer.
83.1The permit shall provide that failure to continuously identify the timber as specified in
83.2the permit constitutes trespass.

83.3    Sec. 34. Minnesota Statutes 2012, section 90.151, subdivision 3, is amended to read:
83.4    Subd. 3. Security provisions. The permit shall contain such provisions as may be
83.5necessary to secure to the state the title of all timber cut thereunder wherever found until
83.6full payment therefor and until all provisions of the permit have been fully complied
83.7with. The permit shall provide that from the date ~~the same becomes effective~~ cutting
83.8commences until the expiration ~~thereof~~ of the permit, including all extensions, the
83.9purchaser and successors in interest shall be liable to the state for the full permit price of
83.10all timber covered thereby, notwithstanding any subsequent damage or injury thereto or
83.11trespass thereon or theft thereof, and without prejudice to the right of the state to pursue
83.12such timber and recover the value thereof anywhere prior to the payment therefor in full to
83.13the state. If an effective permit is forfeited prior to any cutting activity, the purchaser is
83.14liable to the state for a sum equal to the down payment and bid guarantee. Upon recovery
83.15from any person other than the permit holder, the permit holder shall be deemed released
83.16to the extent of the net amount, after deducting all expenses of collecting same, recovered
83.17by the state from such other person.

83.18    Sec. 35. Minnesota Statutes 2012, section 90.151, subdivision 4, is amended to read:
83.19    Subd. 4. Permit terms. Once a permit becomes effective and cutting commences,
83.20the permit holder is liable to the state for the permit price for all timber required to be cut,
83.21including timber not cut. The permit shall provide that all timber sold or designated for
83.22cutting shall be cut ~~without~~ in such a manner so as not to cause damage to other timber;
83.23that the permit holder shall remove all timber authorized and designated to be cut under
83.24the permit; that timber sold by ~~board~~ measure identified in the permit, but later determined
83.25by the commissioner not to be convertible into ~~board~~ the permit's measure, shall be paid
83.26for by the piece or cord or other unit of measure according to the size, species, or value, as
83.27may be determined by the commissioner; and that all timber products, except as specified
83.28by the commissioner, shall be scaled and the final settlement for the timber cut shall be
83.29made on this scale~~; and that the permit holder shall pay to the state the permit price for~~
83.30~~all timber authorized to be cut, including timber not cut~~.

83.31    Sec. 36. Minnesota Statutes 2012, section 90.151, subdivision 6, is amended to read:
83.32    Subd. 6. Notice and approval required. The permit shall provide that the permit
83.33holder shall not start cutting any state timber nor clear ~~building sites~~ landings nor logging
84.1roads until the commissioner has been notified and has given prior approval to such
84.2cutting operations. Approval shall not be granted until the permit holder has completed
84.3a presale conference with the state appraiser designated to supervise the cutting. The
84.4permit holder shall also give prior notice whenever permit operations are to be temporarily
84.5halted, whenever permit operations are to be resumed, and when permit operations are to
84.6be completed.

84.7    Sec. 37. Minnesota Statutes 2012, section 90.151, subdivision 7, is amended to read:
84.8    Subd. 7. Liability for timber cut in trespass. The permit shall provide that the
84.9permit holder shall pay the permit price value for any timber sold which is negligently
84.10destroyed or damaged by the permit holder in cutting or removing other timber sold. If the
84.11permit holder shall cut or remove or negligently destroy or damage any timber upon the
84.12land described, not sold under the permit, except such timber as it may be necessary to cut
84.13and remove in the construction of necessary logging roads and landings approved as to
84.14location and route by the commissioner, such timber shall be deemed to have been cut in
84.15trespass. The permit holder shall be liable for any such timber and recourse may be had
84.16upon the ~~bond~~ security deposit.

84.17    Sec. 38. Minnesota Statutes 2012, section 90.151, subdivision 8, is amended to read:
84.18    Subd. 8. Suspension; cancellation. The permit shall provide that the commissioner
84.19shall have the power to order suspension of all operations under the permit when ~~in the~~
84.20~~commissioner's judgment~~ the conditions thereof have not been complied with and any
84.21timber cut or removed during such suspension shall be deemed to have been cut in trespass;
84.22that the commissioner may cancel the permit at any time ~~when in the commissioner's~~
84.23~~judgment the conditions thereof have not been complied with~~ due to a breach of the permit
84.24conditions and such cancellation shall constitute repossession of the timber by the state;
84.25that the permit holder shall remove equipment and buildings from such land within 90 days
84.26after such cancellation; that, if the purchaser at any time fails to pay any obligations to the
84.27state under any other permits, any or all permits may be canceled; and that any timber cut
84.28or removed in violation of the terms of the permit or of any law shall constitute trespass.

84.29    Sec. 39. Minnesota Statutes 2012, section 90.151, subdivision 9, is amended to read:
84.30    Subd. 9. Slashings disposal. The permit shall provide that the permit holder shall
84.31~~burn or otherwise~~ dispose of or treat all slashings or other refuse resulting from cutting
84.32operations, as specified in the permit, in the manner now or hereafter provided by law.

85.1    Sec. 40. Minnesota Statutes 2012, section 90.161, is amended to read:
85.290.161 ~~SURETY BONDS FOR AUCTION~~ SECURITY DEPOSITS
85.3REQUIRED FOR EFFECTIVE TIMBER PERMITS.
85.4    Subdivision 1. ~~Bond~~ Security deposit required. (a) Except as otherwise provided
85.5by law, the purchaser of any state timber, before any timber permit becomes effective for
85.6any purpose, shall give a good and valid ~~bond~~ security in the form of cash; a certified
85.7check; a cashier's check; a postal, bank, or express money order; a corporate surety bond;
85.8or an irrevocable bank letter of credit to the state of Minnesota equal to the value of all
85.9timber covered or to be covered by the permit, as shown by the sale price bid and the
85.10appraisal report as to quantity, less the amount of any payments pursuant to ~~sections~~
85.11 section 90.14 ~~and~~ ~~90.163~~.
85.12(b) The ~~bond~~ security deposit shall be conditioned upon the faithful performance
85.13by the purchaser and successors in interest of all terms and conditions of the permit and
85.14all requirements of law in respect to timber sales. The ~~bond~~ security deposit shall be
85.15approved in writing by the commissioner and filed for record in the commissioner's office.
85.16(c) ~~In the alternative to cash and bond requirements, but upon the same conditions,~~
85.17 A purchaser may post bond for 100 percent of the purchase price and request refund of the
85.18amount of any payments pursuant to ~~sections~~ section 90.14 ~~and~~ ~~90.163~~. The commissioner
85.19may credit the refund to any other permit held by the same permit holder if the permit is
85.20delinquent as provided in section 90.181, subdivision 2, or may credit the refund to any
85.21other permit to which the permit holder requests that it be credited.
85.22(d) In the event of a default, the commissioner may take from the deposit the sum of
85.23money to which the state is entitled. The commissioner shall return the remainder of the
85.24deposit, if any, to the person making the deposit. When cash is deposited as security, it
85.25shall be applied to the amount due when a statement is prepared and transmitted to the
85.26permit holder according to section 90.181. Any balance due to the state shall be shown on
85.27the statement and shall be paid as provided in section 90.181. Any amount of the deposit
85.28in excess of the amount determined to be due according to section 90.181 shall be returned
85.29to the permit holder when a final statement is transmitted under section 90.181. All or
85.30part of a cash deposit may be withheld from application to an amount due on a nonfinal
85.31statement if it appears that the total amount due on the permit will exceed the bid price.
85.32(e) If an irrevocable bank letter of credit is provided as security under paragraph
85.33(a), at the written request of the permittee, the commissioner shall annually allow the
85.34amount of the bank letter of credit to be reduced by an amount proportionate to the value
85.35of timber that has been harvested and for which the state has received payment under the
85.36timber permit. The remaining amount of the bank letter of credit after a reduction under
86.1this paragraph must not be less than the value of the timber remaining to be harvested
86.2under the timber permit.
86.3(f) If cash; a certified check; a cashier's check; a personal check; or a postal, bank, or
86.4express money order is provided as security under paragraph (a) and no cutting of state
86.5timber has taken place on the permit, the commissioner may credit the security provided,
86.6less any deposit required under section 90.14, to any other permit to which the permit
86.7holder requests in writing that it be credited.
86.8    Subd. 2. Failure to ~~bond~~ provide security deposit. If ~~bond~~ the security deposit is
86.9not furnished, no harvesting may occur and ~~the down payment for timber~~ 15 percent of the
86.10permit's purchase price shall forfeit to the state when the permit expires.
86.11    Subd. 3. Subrogation. ~~In case of default~~ When security is provided by surety
86.12bond and the permit holder defaults in payment ~~by the permit holder~~, the surety upon the
86.13bond shall make payment in full to the state of all sums of money due under such permit;
86.14and thereupon such surety shall be deemed immediately subrogated to all the rights of
86.15the state in the timber so paid for; and such subrogated party may pursue the timber and
86.16recover therefor, or have any other appropriate relief in relation thereto which the state
86.17might or could have had if such surety had not made such payment. No assignment or
86.18other writing on the part of the state shall be necessary to make such subrogation effective,
86.19but the certificate signed by and bearing the official seal of the commissioner, showing the
86.20amount of such timber, the lands from which it was cut or upon which it stood, and the
86.21amount paid therefor, shall be prima facie evidence of such facts.
86.22    Subd. 4. Change of security. Prior to any ~~harvest~~ cutting activity, or activities
86.23incidental to the preparation for harvest, a purchaser having posted a ~~bond~~ security deposit
86.24 for 100 percent of the purchase price of a sale may request the release of the ~~bond~~ security
86.25 and the commissioner shall grant the release ~~upon cash payment to the commissioner of~~
86.26~~15 percent of the appraised value of the sale, plus eight percent interest on the appraised~~
86.27~~value of the sale from the date of purchase to the date of release~~ while retaining, or upon
86.28repayment of, the permit's down payment and bid guarantee deposit requirement.
86.29    Subd. 5. Return of security. Any security required under this section shall be
86.30returned to the purchaser within 60 days after the final scale.

86.31    Sec. 41. Minnesota Statutes 2012, section 90.162, is amended to read:
86.3290.162 ~~ALTERNATIVE TO BOND OR DEPOSIT REQUIREMENTS~~
86.33 SECURING TIMBER PERMITS WITH CUTTING BLOCKS.
86.34In lieu of the ~~bond or cash~~ security deposit equal to the value of all timber covered
86.35by the permit required by section 90.161 or ~~90.173~~, a purchaser of state timber may elect
87.1in writing on a form prescribed by the attorney general to give good and valid surety to the
87.2state of Minnesota equal to the purchase price for any designated cutting block identified
87.3on the permit before the date the purchaser enters upon the land to begin harvesting the
87.4timber on the designated cutting block.

87.5    Sec. 42. [90.164] TIMBER PERMIT DEVELOPMENT OPTION.
87.6With the completion of the presale conference requirement under section 90.151,
87.7subdivision 6, a permit holder may access the permit area in advance of the permit being
87.8fully secured as required by section 90.161, for the express purpose of clearing approved
87.9landings and logging roads. No cutting of state timber except that incidental to the clearing
87.10of approved landings and logging roads is allowed under this section.

87.11    Sec. 43. Minnesota Statutes 2012, section 90.171, is amended to read:
87.1290.171 ASSIGNMENT OF AUCTION TIMBER PERMITS.
87.13Any permit sold at public auction may be assigned upon written approval of the
87.14commissioner. The assignment of any permit shall be signed and acknowledged by the
87.15permit holder. The commissioner shall not approve any assignment until the assignee has
87.16been determined to meet the qualifications of a responsible bidder and has given to the state
87.17a ~~bond~~ security deposit which shall be substantially in the form of, and shall be deemed
87.18of the same effect as, the ~~bond~~ security deposit required of the original purchaser. The
87.19commissioner may accept ~~the~~ an agreement of the assignee and any corporate surety upon
87.20~~such~~ an original bond, substituting the assignee in the place of ~~such~~ the original purchaser
87.21and continuing ~~such~~ the original bond in full force and effect, as to the assignee. Thereupon
87.22but not otherwise the permit holder making the assignment shall be released from all
87.23liability arising or accruing from actions taken after the assignment became effective.

87.24    Sec. 44. Minnesota Statutes 2012, section 90.181, subdivision 2, is amended to read:
87.25    Subd. 2. Deferred payments. (a) If the amount of the statement is not paid within
87.2630 days of the date thereof, it shall bear interest at the rate determined pursuant to section
87.2716A.124 , except that the purchaser shall not be required to pay interest that totals $1 or
87.28less. If the amount is not paid within 60 days, the commissioner shall place the account in
87.29the hands of the commissioner of revenue according to chapter 16D, who shall proceed to
87.30collect the same. When deemed in the best interests of the state, the commissioner shall
87.31take possession of the timber for which an amount is due wherever it may be found and
87.32sell the same informally or at public auction after giving reasonable notice.
88.1(b) The proceeds of the sale shall be applied, first, to the payment of the expenses
88.2of seizure and sale; and, second, to the payment of the amount due for the timber, with
88.3interest; and the surplus, if any, shall belong to the state; and, in case a sufficient amount is
88.4not realized to pay these amounts in full, the balance shall be collected by the attorney
88.5general. Neither payment of the amount, nor the recovery of judgment therefor, nor
88.6satisfaction of the judgment, nor the seizure and sale of timber, shall release the sureties
88.7on any ~~bond~~ security deposit given pursuant to this chapter, or preclude the state from
88.8afterwards claiming that the timber was cut or removed contrary to law and recovering
88.9damages for the trespass thereby committed, or from prosecuting the offender criminally.

88.10    Sec. 45. Minnesota Statutes 2012, section 90.191, subdivision 1, is amended to read:
88.11    Subdivision 1. Sale requirements. The commissioner may sell the timber on any
88.12tract of state land in lots not exceeding 500 cords in volume, without formalities but for
88.13not less than the full appraised value thereof, to any person. No sale shall be made under
88.14this section to any person holding ~~two~~ more than four permits issued hereunder which are
88.15still in effect;. ~~except that (1) a partnership as defined in chapter 323, which may include~~
88.16~~spouses but which shall provide evidence that a partnership exists, may be holding two~~
88.17~~permits for each of not more than three partners who are actively engaged in the business~~
88.18~~of logging or who are the spouses of persons who are actively engaged in the business of~~
88.19~~logging with that partnership; and (2) a corporation, a majority of whose shares and voting~~
88.20~~power are owned by natural persons related to each other within the fourth degree of~~
88.21~~kindred according to the rules of the civil law or their spouses or estates, may be holding~~
88.22~~two permits for each of not more than three shareholders who are actively engaged in the~~
88.23~~business of logging or who are the spouses of persons who are actively engaged in the~~
88.24~~business of logging with that corporation.~~

88.25    Sec. 46. Minnesota Statutes 2012, section 90.193, is amended to read:
88.2690.193 EXTENSION OF TIMBER PERMITS.
88.27The commissioner may, in the case of an exceptional circumstance beyond the
88.28control of the timber permit holder which makes it unreasonable, impractical, and not
88.29feasible to complete cutting and removal under the permit within the time allowed, grant
88.30an one regular extension of for one year. A written request for the regular extension must
88.31be received by the commissioner before the permit expires. The request must state the
88.32reason the extension is necessary and be signed by the permit holder. An interest rate of
88.33eight percent may be charged for the period of extension.

89.1    Sec. 47. Minnesota Statutes 2012, section 90.195, is amended to read:
89.290.195 SPECIAL USE AND PRODUCT PERMIT.
89.3(a) The commissioner may issue a permit to salvage or cut not to exceed 12 cords of
89.4fuelwood per year for personal use from either or both of the following sources: (1) dead,
89.5down, and ~~diseased~~ damaged trees; (2) other trees that are of negative value under good
89.6forest management practices. The permits may be issued for a period not to exceed one
89.7year. The commissioner shall charge a fee for the permit ~~that shall cover the commissioner's~~
89.8~~cost of issuing the permit and~~ as provided under section 90.041, subdivision 10. The fee
89.9 shall not exceed the current market value of fuelwood of similar species, grade, and volume
89.10that is being sold in the area where the salvage or cutting is authorized under the permit.
89.11(b) The commissioner may issue a special product permit under section 89.42 for
89.12commercial use, which may include incidental volumes of boughs, gravel, hay, biomass,
89.13and other products derived from forest management activities. The value of the products
89.14is the current market value of the products that are being sold in the area. The permit may
89.15be issued for a period not to exceed one year and the commissioner shall charge a fee for
89.16the permit as provided under section 90.041, subdivision 10.
89.17(c) The commissioner may issue a special use permit for incidental volumes of
89.18timber from approved right-of-way road clearing across state land for the purpose of
89.19accessing a state timber permit. The permit shall include the volume and value of timber
89.20to be cleared and may be issued for a period not to exceed one year. A presale conference
89.21as required under section 90.151, subdivision 6, must be completed before the start of
89.22any activities under the permit.

89.23    Sec. 48. Minnesota Statutes 2012, section 90.201, subdivision 2a, is amended to read:
89.24    Subd. 2a. Prompt payment of refunds. Any refund of cash that is due to a permit
89.25holder as determined on a final statement transmitted pursuant to section 90.181 or a
89.26refund of cash made pursuant to section 90.161, subdivision 1, or ~~90.173, paragraph~~
89.27~~(a)~~ , shall be paid to the permit holder according to section 16A.124 unless the refund is
89.28credited on another permit as provided in this chapter.

89.29    Sec. 49. Minnesota Statutes 2012, section 90.211, is amended to read:
89.3090.211 PURCHASE MONEY, WHEN FORFEITED.
89.31If the holder of an effective permit begins to cut and then fails to ~~cut~~ complete any
89.32part ~~thereof~~ of the permit before the expiration of the permit, the permit holder shall
89.33nevertheless pay the price therefor; but under no circumstances shall timber be cut after
89.34the expiration of the permit or extension thereof.

90.1    Sec. 50. Minnesota Statutes 2012, section 90.221, is amended to read:
90.290.221 TIMBER SALES RECORDS.
90.3The commissioner shall keep timber sales records, including the description of each
90.4tract of land from which any timber is sold; the date of the report of the state appraisers;
90.5the kind, amount, and value of the timber as shown by such report; the date of the sale;
90.6the price for which the timber was sold; the name of the purchaser; the number, date
90.7of issuance and date of expiration of each permit; the date of any assignment of the
90.8permit; the name of the assignee; the dates of the filing and the amounts of the respective
90.9~~bonds~~ security deposits by the purchaser and assignee; the names of the sureties thereon;
90.10the amount of timber taken from the land; the date of the report of the scaler and state
90.11appraiser; the names of the scaler and the state appraiser who scaled the timber; and the
90.12amount paid for such timber and the date of payment.

90.13    Sec. 51. Minnesota Statutes 2012, section 90.252, subdivision 1, is amended to read:
90.14    Subdivision 1. Consumer scaling. The commissioner may enter into an agreement
90.15with either a timber sale permittee, or the purchaser of the cut products, or both, so
90.16that the scaling of the cut timber and the collection of the payment for the same can be
90.17consummated by the ~~consumer~~ state. Such an agreement shall be approved as to form and
90.18content by the attorney general and shall provide for a bond or cash in lieu of a bond and
90.19such other safeguards as are necessary to protect the interests of the state. The scaling
90.20and payment collection procedure may be used for any state timber sale, except that no
90.21permittee who is also the consumer shall both cut and scale the timber sold unless such
90.22scaling is supervised by a state scaler.

90.23    Sec. 52. Minnesota Statutes 2012, section 90.301, subdivision 2, is amended to read:
90.24    Subd. 2. Seizure of unlawfully cut timber. The commissioner may take possession
90.25of any timber hereafter unlawfully cut upon or taken from any land owned by the state
90.26wherever found and may sell the same informally or at public auction after giving such
90.27notice as the commissioner deems reasonable and after deducting all the expenses of such
90.28sale the proceeds thereof shall be paid into the state treasury to the credit of the proper
90.29fund; and when any timber so unlawfully cut has been intermingled with any other timber
90.30or property so that it cannot be identified or plainly separated therefrom the commissioner
90.31may so seize and sell the whole quantity so intermingled and, in such case, the whole
90.32quantity of such timber shall be conclusively presumed to have been unlawfully taken
90.33from state land. When the timber unlawfully cut or removed from state land is so seized
90.34and sold, the seizure shall not in any manner relieve the trespasser who cut or removed, or
91.1caused the cutting or removal of, any such timber from the full liability imposed by this
91.2chapter for the trespass so committed, but the net amount realized from such sale shall
91.3be credited on whatever judgment is recovered against such trespasser, if the trespass
91.4was deemed to be casual and involuntary.

91.5    Sec. 53. Minnesota Statutes 2012, section 90.301, subdivision 4, is amended to read:
91.6    Subd. 4. Apprehension of trespassers; reward. The commissioner may offer a
91.7reward to be paid to a person giving to the proper authorities any information that leads to
91.8the conviction of a person violating this chapter. The reward is limited to the greater of
91.9$100 or ten percent of the single stumpage value of any timber unlawfully cut or removed.
91.10The commissioner shall pay the reward from funds appropriated for that purpose or from
91.11receipts from the sale of state timber. A reward shall not be paid to salaried forest officers,
91.12state appraisers, scalers, conservation officers, or licensed peace officers.

91.13    Sec. 54. Minnesota Statutes 2012, section 90.41, subdivision 1, is amended to read:
91.14    Subdivision 1. Violations and penalty. (a) Any state scaler or state appraiser who
91.15shall accept any compensation or gratuity for services as such from any other source
91.16except the state of Minnesota, or any state scaler, or other person authorized to scale state
91.17timber, or state appraiser, who shall make any false report, or insert in any such report any
91.18false statement, or shall make any such report without having examined the land embraced
91.19therein or without having actually been upon the land, or omit from any such report any
91.20statement required by law to be made therein, or who shall fail to report any known trespass
91.21committed upon state lands, or who shall conspire with any other person in any manner, by
91.22act or omission or otherwise, to defraud or unlawfully deprive the state of Minnesota of any
91.23land or timber, or the value thereof, shall be guilty of a felony. Any material discrepancy
91.24between the facts and the scale returned by any such person scaling timber for the state
91.25shall be considered prima facie evidence that such person is guilty of violating this statute.
91.26(b) No such appraiser or scaler who has been once discharged for cause shall ever
91.27again be appointed. This provision shall not apply to resignations voluntarily made by and
91.28accepted from such employees.

91.29    Sec. 55. Minnesota Statutes 2012, section 92.50, is amended to read:
91.3092.50 UNSOLD LANDS SUBJECT TO SALE MAY BE LEASED.
91.31    Subdivision 1. Lease terms. (a) The commissioner of natural resources may lease
91.32land under the commissioner's jurisdiction and control:
91.33(1) to remove sand, gravel, clay, rock, marl, peat, and black dirt;
92.1(2) to store ore, waste materials from mines, or rock and tailings from ore milling
92.2plants;
92.3(3) for roads or railroads; or
92.4(4) for other uses consistent with the interests of the state.
92.5(b) The commissioner shall offer the lease at public or private sale for an amount
92.6and under terms and conditions prescribed by the commissioner. Commercial leases for
92.7more than ten years and leases for removal of peat that cover 320 or more acres must be
92.8approved by the Executive Council.
92.9(c) The lease term may not exceed 21 years except:
92.10(1) leases of lands for storage sites for ore, waste materials from mines, or rock and
92.11tailings from ore milling plants, or for the removal of peat for nonagricultural purposes
92.12may not exceed a term of 25 years; and
92.13(2) leases for commercial purposes, including major resort, convention center, or
92.14recreational area purposes, may not exceed a term of 40 years.
92.15(d) Leases must be subject to sale and leasing of the land for mineral purposes and
92.16contain a provision for cancellation for just cause at any time by the commissioner upon
92.17six months' written notice. A longer notice period, not exceeding three years, may be
92.18provided in leases for storing ore, waste materials from mines or rock or tailings from ore
92.19milling plants. The commissioner may determine the terms and conditions, including the
92.20notice period, for cancellation of a lease for the removal of peat and commercial leases.
92.21(e) Except as provided in subdivision 3, money received from leases under this
92.22section must be credited to the fund to which the land belongs.
92.23    Subd. 2. Leases for tailings deposits. The commissioner may grant leases and
92.24licenses to deposit tailings from any iron ore beneficiation plant in any public lake not
92.25exceeding 160 acres in area after holding a public hearing in the manner and under the
92.26procedure provided in Laws 1937, chapter 468, as amended and finding in pursuance
92.27of the hearing:
92.28(a) that such use of each lake is necessary and in the best interests of the public; and
92.29(b) that the proposed use will not result in pollution or sedimentation of any outlet
92.30stream.
92.31The lease or license may not exceed a term of 25 years and must be subject to
92.32cancellation on three years' notice. The commissioner may further restrict use of the lake
92.33to safeguard the public interest, and may require that the lessee or licensee acquire suitable
92.34permits or easements from the owners of lands riparian to the lake. Except as provided
92.35in subdivision 3, money received from the leases or licenses must be deposited in the
92.36permanent school fund.
93.1    Subd. 3. Application fees. (a) The commissioner shall, by written order, establish
93.2the schedule of application fees for all leases issued under this section. Notwithstanding
93.3section 16A.1285, subdivision 2, the application fees shall be set at a rate that neither
93.4significantly overrecovers nor underrecovers costs, including overhead costs, involved in
93.5providing the services at the time of issuing the leases. The commissioner shall update
93.6the schedule of application fees every five years. The schedule of application fees and
93.7any adjustment to the schedule are not subject to the rulemaking provision of chapter 14
93.8and section 14.386 does not apply.
93.9(b) Money received under this subdivision must be deposited in the land management
93.10account in the natural resources fund and is appropriated to the commissioner to cover the
93.11reasonable costs incurred for issuing leases.

93.12    Sec. 56. Minnesota Statutes 2012, section 93.17, subdivision 1, is amended to read:
93.13    Subdivision 1. Lease application. (a) Applications for leases to prospect for iron
93.14ore shall be presented to the commissioner in writing in such form as the commissioner
93.15may prescribe at any time before 4:30 p.m., St. Paul, Minnesota time, on the last business
93.16day before the day specified for the opening of bids, and no bids submitted after that time
93.17shall be considered. The application shall be accompanied by a certified check, cashier's
93.18check, or bank money order payable to the Department of Natural Resources in the sum of
93.19~~$100~~ $1,000 for each mining unit. The fee shall be deposited in the minerals management
93.20account in the natural resources fund.
93.21(b) Each application shall be accompanied by a sealed bid setting forth the amount
93.22of royalty per gross ton of crude ore based upon the iron content of the ore when dried at
93.23212 degrees Fahrenheit, in its natural condition or when concentrated, as set out in section
93.2493.20 , subdivisions 12 to 18, that the applicant proposes to pay to the state of Minnesota
93.25in case the lease shall be awarded.

93.26    Sec. 57. Minnesota Statutes 2012, section 93.1925, subdivision 2, is amended to read:
93.27    Subd. 2. Application. (a) An application for a negotiated lease shall be submitted to
93.28the commissioner of natural resources. The commissioner shall prescribe the information
93.29to be included in the application. The applicant shall submit with the application a certified
93.30check, cashier's check, or bank money order, payable to the Department of Natural
93.31Resources in the sum of ~~$100~~ $2,000, as a fee for filing the application. The application
93.32fee shall not be refunded under any circumstances. The application fee shall be deposited
93.33in the minerals management account in the natural resources fund.
94.1(b) The right is reserved to the state to reject any or all applications for a negotiated
94.2lease.

94.3    Sec. 58. Minnesota Statutes 2012, section 93.25, subdivision 2, is amended to read:
94.4    Subd. 2. Lease requirements. (a) All leases for nonferrous metallic minerals or
94.5petroleum must be approved by the Executive Council, and any other mineral lease issued
94.6pursuant to this section that covers 160 or more acres must be approved by the Executive
94.7Council. The rents, royalties, terms, conditions, and covenants of all such leases shall be
94.8fixed by the commissioner according to rules adopted by the commissioner, but no lease
94.9shall be for a longer term than 50 years, and all rents, royalties, terms, conditions, and
94.10covenants shall be fully set forth in each lease issued. The rents and royalties shall be
94.11credited to the funds as provided in section 93.22.
94.12(b) The applicant for a lease must submit with the application a certified check,
94.13cashier's check, or bank money order payable to the Department of Natural Resources
94.14in the sum of:
94.15(1) $1,000 as a fee for filing an application for a lease being offered at public sale;
94.16(2) $1,000 as a fee for filing an application for a lease being offered under the
94.17preference rights lease availability list; and
94.18(3) $2,000 as a fee for filing an application for a lease through negotiation. The
94.19application fee for a negotiated lease shall not be refunded under any circumstances.
94.20The application fee must be deposited in the minerals management account in the natural
94.21resources fund.

94.22    Sec. 59. Minnesota Statutes 2012, section 93.285, subdivision 3, is amended to read:
94.23    Subd. 3. Stockpile mining unit. (a) Any stockpiled iron ore, wherever situated,
94.24may, in the discretion of the commissioner of natural resources, be designated as a
94.25stockpile mining unit for disposal separately from ore in the ground, such designation to
94.26be made according to section 93.15, so far as applicable.
94.27(b) The commissioner may lease the mining unit at public or private sale for an
94.28amount and under terms and conditions prescribed by the commissioner.
94.29(c) The applicant must submit with the application a certified check, cashier's check,
94.30or bank money order payable to the Department of Natural Resources in the sum of $1,000
94.31as a fee for filing an application for a lease being offered at public sale and in the sum of
94.32$2,000 as a fee for filing an application for a lease through negotiation. The application
94.33fee for a negotiated lease shall not be refunded under any circumstances. The application
94.34fee must be deposited in the minerals management account in the natural resources fund.
95.1(d) The lease term may not exceed 25 years. The amount payable for stockpiled iron
95.2ore material shall be at least equivalent to the minimum royalty that would be payable
95.3under section 93.20.

95.4    Sec. 60. Minnesota Statutes 2012, section 93.46, is amended by adding a subdivision
95.5to read:
95.6    Subd. 10. Scram mining. "Scram mining" means a mining operation that produces
95.7natural iron ore, natural iron ore concentrates, or taconite ore as described in section 93.20,
95.8subdivisions 12 to 18, from previously developed stockpiles, tailing basins, underground
95.9mine workings, or open pits and that involves no more than 80 acres of land not previously
95.10affected by mining, or more than 80 acres of land not previously affected by mining
95.11if the operator can demonstrate that impacts would be substantially the same as other
95.12scram operations. "Land not previously affected by mining" means land upon which mine
95.13wastes have not been deposited and land from which materials have not been removed in
95.14connection with the production or extraction of metallic minerals.

95.15    Sec. 61. Minnesota Statutes 2012, section 93.481, subdivision 3, is amended to read:
95.16    Subd. 3. Term of permit; amendment. (a) A permit issued by the commissioner
95.17pursuant to this section shall be granted for the term determined necessary by the
95.18commissioner for the completion of the proposed mining operation, including reclamation
95.19or restoration. The term of a scram mining permit for iron ore or taconite shall be
95.20determined in the same manner as a permit to mine for an iron ore or taconite mining
95.21operation.
95.22(b) A permit may be amended upon written application to the commissioner. A
95.23permit amendment application fee must be submitted with the written application.
95.24The permit amendment application fee is ~~ten~~ 20 percent of the amount provided for in
95.25subdivision 1, clause (3), for an application for the applicable permit to mine. If the
95.26commissioner determines that the proposed amendment constitutes a substantial change to
95.27the permit, the person applying for the amendment shall publish notice in the same manner
95.28as for a new permit, and a hearing shall be held if written objections are received in the
95.29same manner as for a new permit. An amendment may be granted by the commissioner if
95.30the commissioner determines that lawful requirements have been met.

95.31    Sec. 62. Minnesota Statutes 2012, section 93.481, is amended by adding a subdivision
95.32to read:
96.1    Subd. 4a. Release. A permit may not be released fully or partially without the
96.2written approval of the commissioner. A permit release application fee must be submitted
96.3with the written request for the release. The permit release application fee is 20 percent of
96.4the amount provided for in subdivision 1, clause (3), for an application for the applicable
96.5permit to mine.

96.6    Sec. 63. Minnesota Statutes 2012, section 93.481, subdivision 5, is amended to read:
96.7    Subd. 5. Assignment. A permit may not be assigned or otherwise transferred
96.8without the written approval of the commissioner. A permit assignment application fee
96.9must be submitted with the written application. The permit assignment application fee is
96.10~~ten~~ 20 percent of the amount provided for in subdivision 1, clause (3), for an application
96.11for the applicable permit to mine.

96.12    Sec. 64. Minnesota Statutes 2012, section 93.481, is amended by adding a subdivision
96.13to read:
96.14    Subd. 5a. Preapplication. Before the preparation of an application for a permit to
96.15mine, persons intending to submit an application must meet with the commissioner for a
96.16preapplication conference and site visit. Prospective applicants must also meet with the
96.17commissioner to outline analyses and tests to be conducted if the results of the analyses
96.18and tests will be used for evaluation of the application. A permit preapplication fee must
96.19be submitted before the preapplication conferences, meetings, and site visit with the
96.20commissioner. The permit preapplication fee is 20 percent of the amount provided in
96.21subdivision 1, clause (3), for an application for the applicable permit to mine.

96.22    Sec. 65. Minnesota Statutes 2012, section 93.482, is amended to read:
96.2393.482 RECLAMATION FEES.
96.24    Subdivision 1. Annual permit to mine fee. (a) The commissioner shall charge
96.25every person holding a permit to mine an annual permit fee. The fee is payable to the
96.26commissioner by June 30 of each year, beginning in 2009.
96.27(b) The annual permit to mine fee for a an iron ore or taconite mining operation is
96.28~~$60,000 if the operation had production within the calendar year immediately preceding~~
96.29~~the year in which payment is due and $30,000 if there was no production within the~~
96.30~~immediately preceding calendar year~~ $84,000.
96.31(c) The annual permit to mine fee for a nonferrous metallic minerals mining
96.32operation is $75,000 ~~if the operation had production within the calendar year immediately~~
97.1~~preceding the year in which payment is due and $37,500 if there was no production within~~
97.2~~the immediately preceding calendar year~~.
97.3(d) The annual permit to mine fee for a scram mining operation is ~~$5,000 if the~~
97.4~~operation had production within the calendar year immediately preceding the year in~~
97.5~~which payment is due and $2,500 if there was no production within the immediately~~
97.6~~preceding calendar year~~ $10,250.
97.7(e) The annual permit to mine fee for a peat mining operation is ~~$1,000 if the~~
97.8~~operation had production within the calendar year immediately preceding the year in~~
97.9~~which payment is due and $500 if there was no production within the immediately~~
97.10~~preceding calendar year~~ $1,350.
97.11    Subd. 2. Supplemental application ~~fee for taconite and nonferrous metallic~~
97.12~~minerals mining operation~~. (a) In addition to the application fee specified in section
97.1393.481 , the commissioner shall assess a person submitting an application for a permit
97.14to mine for a taconite or, a nonferrous metallic minerals mining, or peat operation the
97.15reasonable costs for reviewing the application and preparing the permit to mine. For
97.16nonferrous metallic minerals mining, the commissioner shall assess reasonable costs for
97.17monitoring construction of the mining facilities. The commissioner may assess a person
97.18submitting a request for amendment, assignment, or full or partial release of a permit to
97.19mine the reasonable costs for reviewing the request and issuing an approval or denial. The
97.20commissioner may assess a person submitting a request for a preapplication conference,
97.21meetings, and a site visit the reasonable costs for reviewing the request and meeting
97.22with the prospective applicant.
97.23(b) The commissioner must give the applicant an estimate of the supplemental
97.24application fee under this subdivision. The estimate must include a brief description
97.25of the tasks to be performed and the estimated cost of each task. The application fee
97.26under section 93.481 must be subtracted from the estimate of costs to determine the
97.27supplemental application fee.
97.28(c) The applicant and the commissioner shall enter into a written agreement to cover
97.29the estimated costs to be incurred by the commissioner.
97.30(d) The commissioner shall not issue the permit to mine until the applicant has paid
97.31all fees in full. The commissioner shall not issue an approved assignment, amendment,
97.32or release until the applicant has paid all fees in full. Upon completion of construction
97.33of a nonferrous metallic minerals facility, the commissioner shall refund the unobligated
97.34balance of the monitoring fee revenue.

98.1    Sec. 66. [93.60] MINERAL DATA AND INSPECTIONS ADMINISTRATION
98.2ACCOUNT.
98.3    Subdivision 1. Account established; sources. The mineral data and inspections
98.4administration account is established in the special revenue fund in the state treasury.
98.5Interest on the account accrues to the account. Fees charged under sections 93.61 and
98.6103I.601, subdivision 4a, shall be credited to the account.
98.7    Subd. 2. Appropriation; purposes of account. Money in the account is
98.8appropriated annually to the commissioner of natural resources to cover the costs of:
98.9(1) operating and maintaining the drill core library in Hibbing, Minnesota; and
98.10(2) conducting inspections of exploratory borings.

98.11    Sec. 67. [93.61] DRILL CORE LIBRARY ACCESS FEE.
98.12Notwithstanding section 13.03, subdivision 3, a person must pay a fee to access
98.13exploration data, exploration drill core data, mineral evaluation data, and mining data
98.14stored in the drill core library located in Hibbing, Minnesota, and managed by the
98.15commissioner of natural resources. The fee is $250 per day. Alternatively, a person may
98.16obtain an annual pass for a fee of $5,000. The fee must be credited to the mineral data and
98.17inspections administration account established in section 93.60 and is appropriated to the
98.18commissioner of natural resources for the reasonable costs of operating and maintaining
98.19the drill core library.

98.20    Sec. 68. [93.70] STATE-OWNED CONSTRUCTION AGGREGATES
98.21RECLAMATION ACCOUNT.
98.22    Subdivision 1. Account established; sources. The state-owned construction
98.23aggregates reclamation account is created in the special revenue fund in the state treasury.
98.24Interest on the account accrues to the account. Fees charged under section 93.71 shall be
98.25credited to the account.
98.26    Subd. 2. Appropriation; purposes of account. Money in the account is
98.27appropriated annually to the commissioner of natural resources to cover the costs of:
98.28(1) reclaiming state lands administered by the commissioner following cessation of
98.29construction aggregates mining operations on the lands; and
98.30(2) issuing and administering contracts needed for the performance of that
98.31reclamation work.

98.32    Sec. 69. [93.71] STATE-OWNED CONSTRUCTION AGGREGATES
98.33RECLAMATION FEE.
99.1    Subdivision 1. Annual reclamation fee; purpose. Except as provided in
99.2subdivision 4, the commissioner of natural resources shall charge a person who holds
99.3a lease or permit to mine construction aggregates on state land administered by the
99.4commissioner an annual reclamation fee. The fee is payable to the commissioner by
99.5January 15 of each year. The purpose of the fee is to pay for reclamation or restoration of
99.6state lands following temporary or permanent cessation of construction aggregates mining
99.7operations. Reclamation and restoration include: land sloping and contouring, spreading
99.8soil from stockpiles, planting vegetation, removing safety hazards, or other measures
99.9needed to return the land to productive and safe nonmining use.
99.10    Subd. 2. Determination of fee. The amount of the annual reclamation fee is
99.11determined as follows:
99.12(1) for aggregates measured in cubic yards upon removal, 15 cents for each cubic yard
99.13removed under the lease or permit within the immediately preceding calendar year; and
99.14(2) for aggregates measured in short tons upon removal, 11 cents per short ton
99.15removed under the lease or permit within the immediately preceding calendar year.
99.16    Subd. 3. Deposit of fees. All fees collected under this section must be deposited in
99.17the state-owned construction aggregates reclamation account established in section 93.70
99.18and credited for use to the same land class from which payment of the fee was derived.
99.19    Subd. 4. Exception. A person who holds a lease to mine construction aggregates on
99.20state land is not subject to the reclamation fee under subdivision 1 if the lease provides
99.21for continuous mining for five or more years at an average rate of 30,000 or more cubic
99.22yards per year over the term of the lease and requires the lessee to perform and pay for
99.23the reclamation.

99.24    Sec. 70. Minnesota Statutes 2012, section 97A.045, subdivision 1, is amended to read:
99.25    Subdivision 1. Duties; generally. (a) The commissioner shall do all things the
99.26commissioner determines are necessary to preserve, protect, and propagate desirable
99.27species of wild animals. The commissioner shall make special provisions for the
99.28management of fish and wildlife to ensure recreational opportunities for anglers and
99.29hunters. The commissioner shall acquire wild animals for breeding or stocking and may
99.30dispose of or destroy undesirable or predatory wild animals and their dens, nests, houses,
99.31or dams.
99.32(b) Notwithstanding chapters 17 and 35, the commissioner, in consultation with the
99.33commissioner of agriculture and the executive director of the Board of Animal Health, may
99.34capture, take, or control nonnative or domestic animals that are released, have escaped,
99.35or are otherwise running at large and causing damage to natural resources or agricultural
100.1lands, or that are posing a threat to wildlife, domestic animals, or human health. The
100.2commissioner may work with other agencies to assist in the capture, taking, or control and
100.3may authorize persons to take such animals. The commissioner may collect a civil penalty
100.4equal to the actual costs incurred by the Department of Natural Resources from a person
100.5who owns nonnative or domestic animals that are captured, taken, or controlled under this
100.6paragraph. The civil penalty shall be deposited in the game and fish fund.

100.7    Sec. 71. Minnesota Statutes 2012, section 97A.401, subdivision 3, is amended to read:
100.8    Subd. 3. Taking, possessing, and transporting wild animals for certain
100.9purposes. (a) Except as provided in paragraph (b), special permits may be issued without
100.10a fee to take, possess, and transport wild animals as pets and for scientific, educational,
100.11rehabilitative, wildlife disease prevention and control, and exhibition purposes. The
100.12commissioner shall prescribe the conditions for taking, possessing, transporting, and
100.13disposing of the wild animals.
100.14(b) A special permit may not be issued to take or possess wild or native deer for
100.15exhibition, propagation, or as pets.
100.16(c) Notwithstanding rules adopted under this section relating to wildlife rehabilitation
100.17permits, nonresident professional wildlife rehabilitators with a federal rehabilitation
100.18permit may possess and transport wildlife affected by oil spills.

100.19    Sec. 72. Minnesota Statutes 2012, section 103G.265, subdivision 2, is amended to read:
100.20    Subd. 2. Diversion greater than 2,000,000 gallons per day. A water use permit
100.21or a plan that requires a permit or the commissioner's approval, involving a diversion of
100.22waters of the state of more than 2,000,000 gallons per day average in a 30-day period,
100.23to a place outside of this state or from the basin of origin within this state may not be
100.24granted or approved until:
100.25~~(1)~~ a determination is made by the commissioner that the ~~water remaining in the~~
100.26~~basin of origin will be adequate to meet the basin's water resources needs during the~~
100.27~~specified life of the diversion project~~ diversion is sustainable and meets the applicable
100.28standards under section 103G.287, subdivision 5~~; and~~
100.29~~(2) approval of the diversion is given by the legislature~~.

100.30    Sec. 73. Minnesota Statutes 2012, section 103G.265, subdivision 3, is amended to read:
100.31    Subd. 3. Consumptive use of more than 2,000,000 gallons per day. ~~(a) Except~~
100.32~~as provided in paragraph (b),~~ A water use permit or a plan that requires a permit or the
101.1commissioner's approval, involving a consumptive use of more than 2,000,000 gallons per
101.2day average in a 30-day period, may not be granted or approved until:
101.3~~(1)~~ a determination is made by the commissioner that the ~~water remaining in the~~
101.4~~basin of origin will be adequate to meet the basin's water resources needs during the~~
101.5~~specified life of the~~ consumptive use is sustainable and meets the applicable standards
101.6under section 103G.287, subdivision 5~~; and~~
101.7~~(2) approval of the consumptive use is given by the legislature~~.
101.8~~(b) Legislative approval under paragraph (a), clause (2), is not required for a~~
101.9~~consumptive use in excess of 2,000,000 gallons per day average in a 30-day period for:~~
101.10~~(1) a domestic water supply, excluding industrial and commercial uses of a~~
101.11~~municipal water supply;~~
101.12~~(2) agricultural irrigation and processing of agricultural products;~~
101.13~~(3) construction and mine land dewatering;~~
101.14~~(4) pollution abatement or remediation; and~~
101.15~~(5) fish and wildlife enhancement projects using surface water sources.~~

101.16    Sec. 74. Minnesota Statutes 2012, section 103G.271, subdivision 6, is amended to read:
101.17    Subd. 6. Water use permit processing fee. (a) Except as described in paragraphs
101.18(b) to (f), a water use permit processing fee must be prescribed by the commissioner in
101.19accordance with the schedule of fees in this subdivision for each water use permit in force
101.20at any time during the year. Fees collected under this paragraph are credited to the water
101.21management account in the natural resources fund. The schedule is as follows, with the
101.22stated fee in each clause applied to the total amount appropriated:
101.23    (1) ~~$140 for amounts not exceeding 50,000,000 gallons per year;~~
101.24    ~~(2) $3.50~~ for residential use, $15 per 1,000,000 gallons ~~for amounts greater than~~
101.25~~50,000,000 gallons but less than 100,000,000 gallons per year~~;
101.26    ~~(3) $4~~ (2) for use for metallic mine dewatering, mineral processing, and wood
101.27products processing, $8 per 1,000,000 gallons ~~for amounts greater than 100,000,000~~
101.28~~gallons but less than 150,000,000 gallons per year~~;
101.29    ~~(4) $4.50~~ (3) for use for nonagricultural irrigation, $75 per 1,000,000 gallons ~~for~~
101.30~~amounts greater than 150,000,000 gallons but less than 200,000,000 gallons per year~~; and
101.31    ~~(5) $5~~ (4) for all other uses, $35 per 1,000,000 gallons ~~for amounts greater than~~
101.32~~200,000,000 gallons but less than 250,000,000 gallons per year;~~.
101.33    ~~(6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but~~
101.34~~less than 300,000,000 gallons per year;~~
102.1    ~~(7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less~~
102.2~~than 350,000,000 gallons per year;~~
102.3    ~~(8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but~~
102.4~~less than 400,000,000 gallons per year;~~
102.5    ~~(9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less~~
102.6~~than 450,000,000 gallons per year;~~
102.7    ~~(10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but~~
102.8~~less than 500,000,000 gallons per year; and~~
102.9    ~~(11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.~~
102.10    (b) For once-through cooling systems, a water use processing fee must be prescribed
102.11by the commissioner in accordance with the following schedule of fees for each water use
102.12permit in force at any time during the year:
102.13    (1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and
102.14    (2) for all other users, $420 per 1,000,000 gallons.
102.15    (c) The fee is payable based on the amount of water appropriated during the year
102.16and, except as provided in paragraph (f), the minimum fee is ~~$100~~ $140.
102.17    (d) For water use processing fees other than once-through cooling systems:
102.18    (1) the fee for a city of the first class may not exceed ~~$250,000~~ $275,000 per year;
102.19    (2) the fee for other entities for any permitted use may not exceed:
102.20    (i) ~~$60,000~~ $66,000 per year for an entity holding three or fewer permits;
102.21    (ii) ~~$90,000~~ $99,000 per year for an entity holding four or five permits; or
102.22    (iii) ~~$300,000~~ $330,000 per year for an entity holding more than five permits;
102.23    (3) the fee for ~~agricultural~~ wild rice irrigation may not exceed $750 per year;
102.24    (4) the fee for a municipality that furnishes electric service and cogenerates steam
102.25for home heating may not exceed $10,000 for its permit for water use related to the
102.26cogeneration of electricity and steam; and
102.27    (5) no fee is required for a project involving the appropriation of surface water to
102.28prevent flood damage or to remove flood waters during a period of flooding, as determined
102.29by the commissioner.
102.30    (e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two
102.31percent per month calculated from the original due date must be imposed on the unpaid
102.32balance of fees remaining 30 days after the sending of a second notice of fees due. A fee
102.33may not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal
102.34governmental agency holding a water appropriation permit.
102.35    (f) The minimum water use processing fee for a permit issued for irrigation of
102.36agricultural land is $20 for years in which:
103.1    (1) there is no appropriation of water under the permit; or
103.2    (2) the permit is suspended for more than seven consecutive days between May 1
103.3and October 1.
103.4    (g) A surcharge of ~~$30~~ $75 per million gallons in addition to the fee prescribed in
103.5paragraph (a) shall be applied to the volume of water used in each of the months of May,
103.6June, July, ~~and~~ August, and September that exceeds the volume of water used in January
103.7for ~~municipal water use, irrigation of golf courses, and landscape irrigation~~ all water uses,
103.8excluding agricultural irrigation, golf course irrigation, metallic mine dewatering, mineral
103.9processing, and wood products processing. The surcharge for ~~municipalities~~ a permit
103.10holder with more than one permit shall be determined based on the total appropriations
103.11from all permits that supply a common distribution system.
103.12EFFECTIVE DATE.This section is effective January 1, 2014.

103.13    Sec. 75. Minnesota Statutes 2012, section 103G.282, is amended to read:
103.14103G.282 MONITORING TO EVALUATE IMPACTS FROM
103.15APPROPRIATIONS.
103.16    Subdivision 1. Monitoring equipment. The commissioner may ~~require the~~
103.17~~installation and maintenance of~~ install and maintain monitoring equipment to evaluate
103.18water resource impacts from permitted appropriations and proposed projects that require
103.19a permit. ~~Monitoring for water resources that supply more than one appropriator must~~
103.20~~be designed to minimize costs to individual appropriators. The cost of drilling additional~~
103.21~~monitoring wells must be shared proportionally by all permit holders that are directly~~
103.22~~affecting a particular water resources feature.~~ The commissioner may require a permit
103.23holder or a proposer of a project to install and maintain monitoring equipment to evaluate
103.24water resource impacts when the commissioner determines that the permitted or proposed
103.25water use is or has the potential to be the primary source of water resource impacts in an
103.26area.
103.27    Subd. 2. Measuring devices required. Monitoring installations ~~required~~
103.28 established under subdivision 1 must be equipped with automated measuring devices
103.29to measure water levels, flows, or conditions. The commissioner may require a permit
103.30holder or a proposer of a project to perform water measurements. The commissioner
103.31may determine the frequency of measurements and other measuring methods based on
103.32the quantity of water appropriated or used, the source of water, potential connections to
103.33other water resources, the method of appropriating or using water, seasonal and long-term
103.34changes in water levels, and any other facts supplied to the commissioner.
104.1    Subd. 3. Reports and costs. (a) Records of water measurements under subdivision
104.22 must be kept for each installation. The measurements must be reported annually to the
104.3commissioner on or before February 15 of the following year in a format or on forms
104.4prescribed by the commissioner.
104.5(b) The ~~owner or person~~ permit holder or project proposer in charge of an installation
104.6for appropriating or using waters of the state or a proposal that requires a permit is
104.7responsible for all costs related to establishing and maintaining monitoring installations
104.8and to measuring and reporting data. ~~Monitoring costs for water resources that supply~~
104.9~~more than one appropriator may be distributed among all users within a monitoring area~~
104.10~~determined by the commissioner and assessed based on volumes of water appropriated~~
104.11~~and proximity to resources of concern.~~ The commissioner may require a permit holder or
104.12project proposer utilizing monitoring equipment installed by the commissioner to meet
104.13water measurement requirements to cover the costs related to measuring and reporting data.

104.14    Sec. 76. Minnesota Statutes 2012, section 103G.287, subdivision 1, is amended to read:
104.15    Subdivision 1. Applications for groundwater appropriations; preliminary well
104.16construction approval. (a) Groundwater use permit applications are not complete until
104.17the applicant has supplied:
104.18(1) a water well record as required by section 103I.205, subdivision 9, information
104.19on the subsurface geologic formations penetrated by the well and the formation or aquifer
104.20that will serve as the water source, and geologic information from test holes drilled to
104.21locate the site of the production well;
104.22(2) the maximum daily, seasonal, and annual pumpage rates and volumes being
104.23requested;
104.24(3) information on groundwater quality in terms of the measures of quality
104.25commonly specified for the proposed water use and details on water treatment necessary
104.26for the proposed use;
104.27(4) an inventory of existing wells within 1-1/2 miles of the proposed production well
104.28or within the area of influence, as determined by the commissioner. The inventory must
104.29include information on well locations, depths, geologic formations, depth of the pump or
104.30intake, pumping and nonpumping water levels, and details of well construction; ~~and~~
104.31(5) the results of an aquifer test completed according to specifications approved by
104.32the commissioner. The test must be conducted at the maximum pumping rate requested
104.33in the application and for a length of time adequate to assess or predict impacts to other
104.34wells and surface water and groundwater resources. The permit applicant is responsible
104.35for all costs related to the aquifer test, including the construction of groundwater and
105.1surface water monitoring installations, and water level readings before, during, and after
105.2the aquifer test; and
105.3(6) the results of any assessments conducted by the commissioner under paragraph (c).
105.4(b) The commissioner may waive an application requirement in this subdivision
105.5if the information provided with the application is adequate to determine whether the
105.6proposed appropriation and use of water is sustainable and will protect ecosystems, water
105.7quality, and the ability of future generations to meet their own needs.
105.8(c) The commissioner shall provide an assessment of a proposed well needing a
105.9groundwater appropriation permit. The commissioner shall evaluate the information
105.10submitted as required under section 103I.205, subdivision 1, paragraph (f), and determine
105.11whether the anticipated appropriation request is likely to meet the applicable requirements
105.12of this chapter. If the appropriation request is likely to meet applicable requirements, the
105.13commissioner shall provide the person submitting the information with a letter providing
105.14preliminary approval to construct the well.

105.15    Sec. 77. Minnesota Statutes 2012, section 103G.287, subdivision 5, is amended to read:
105.16    Subd. 5. ~~Interference with other wells~~ Sustainability standard. The
105.17commissioner may issue water use permits for appropriation from groundwater only if
105.18the commissioner determines that the groundwater use is sustainable to supply the needs
105.19of future generations and the proposed use will not harm ecosystems, degrade water, or
105.20reduce water levels beyond the reach of public water supply and private domestic wells
105.21constructed according to Minnesota Rules, chapter 4725.

105.22    Sec. 78. Minnesota Statutes 2012, section 103G.615, subdivision 2, is amended to read:
105.23    Subd. 2. Fees. (a) ~~The commissioner shall establish a fee schedule for permits to~~
105.24~~control or harvest aquatic plants other than wild rice. The fees must be set by rule, and~~
105.25~~section~~ ~~16A.1283~~ ~~does not apply, but the rule must not take effect until 45 legislative~~
105.26~~days after it has been reported to the legislature.~~ The fees ~~shall not exceed $2,500 per~~
105.27~~permit and~~ shall be based upon the cost of receiving, processing, analyzing, and issuing
105.28the permit, and additional costs incurred after the application to inspect and monitor
105.29the activities authorized by the permit, and enforce aquatic plant management rules and
105.30permit requirements. The permit fee, in the form of a check or money order payable to the
105.31Minnesota Department of Natural Resources, must accompany each permit application.
105.32When application is made to control two or more shoreline nuisance conditions, only the
105.33larger fee applies. Permit fees are:
106.1    ~~(b) A fee for a permit for the~~ (1) to control of rooted aquatic ~~vegetation~~ plants
106.2by pesticide or mechanical means, $90 for each contiguous parcel of shoreline owned
106.3by an owner ~~may be charged~~, including a three-year automatic aquatic plant control
106.4device permit. This fee may not be charged for ~~permits issued in connection with~~ purple
106.5loosestrife control or lakewide ~~Eurasian water milfoil control programs.~~ or baywide
106.6invasive aquatic plant management permits;
106.7(2) to control filamentous algae, snails that carry swimmer's itch, or leeches, singly
106.8or in combination, $40 for each contiguous parcel or shoreline with a distinct owner;
106.9(3) for offshore control of submersed aquatic plants by pesticide or mechanical
106.10means, $90;
106.11(4) to control plankton algae or free-floating aquatic plants by lakewide or baywide
106.12application of approved pesticides, $90;
106.13(5) for a commercial mechanical control permit, $100 annually, and;
106.14(6) for a commercial harvest permit, $100 plus $300 for each public water listed on
106.15the application that requires an inspection. An inspection is required for waters with no
106.16previous permit history and may be required at other times to monitor the status of the
106.17aquatic plant population.
106.18(b) There is no permit fee for:
106.19(1) permits to transplant aquatic plants in public waters;
106.20(2) permits to move or remove a floating bog in public waters if the floating bog is
106.21lodged against the permittee's property and has not taken root;
106.22(3) invasive aquatic plant management permits; or
106.23    ~~(c) A fee may not be charged to~~ (4) permits applied for by the state or a federal
106.24governmental agency ~~applying for a permit~~.
106.25    ~~(d)~~ (c) A fee for a permit for the control of rooted aquatic vegetation in a public
106.26water basin that is 20 acres or less in size ~~shall be~~ is one-half of the fee established under
106.27paragraph (a), clause (1).
106.28(d) If the fee does not accompany the application, the applicant shall be notified and
106.29no action will be taken on the application until the fee is received.
106.30(e) A fee is refundable only when the application is withdrawn prior to field
106.31inspection or issuance or denial of the permit or when the commissioner determines that
106.32the activity does not require a permit.
106.33~~(e)~~ (f) The money received for the permits under this subdivision shall be deposited
106.34in the ~~treasury and credited to the~~ water recreation account in the natural resources fund.
107.1~~(f)~~ (g) The fee for processing a notification to request authorization for work under
107.2a general permit is $30~~, until the commissioner establishes a fee by rule as provided~~
107.3~~under this subdivision~~.

107.4    Sec. 79. Minnesota Statutes 2012, section 103I.205, subdivision 1, is amended to read:
107.5    Subdivision 1. Notification required. (a) Except as provided in paragraphs (d)
107.6and (e), a person may not construct a well until a notification of the proposed well on a
107.7form prescribed by the commissioner is filed with the commissioner with the filing fee in
107.8section 103I.208, and, when applicable, the person has met the requirements of paragraph
107.9(f). If after filing the well notification an attempt to construct a well is unsuccessful, a
107.10new notification is not required unless the information relating to the successful well
107.11has substantially changed.
107.12(b) The property owner, the property owner's agent, or the well contractor where a
107.13well is to be located must file the well notification with the commissioner.
107.14(c) The well notification under this subdivision preempts local permits and
107.15notifications, and counties or home rule charter or statutory cities may not require a
107.16permit or notification for wells unless the commissioner has delegated the permitting or
107.17notification authority under section 103I.111.
107.18(d) A person who is an individual that constructs a drive point well on property
107.19owned or leased by the individual for farming or agricultural purposes or as the individual's
107.20place of abode must notify the commissioner of the installation and location of the well.
107.21The person must complete the notification form prescribed by the commissioner and mail
107.22it to the commissioner by ten days after the well is completed. A fee may not be charged
107.23for the notification. A person who sells drive point wells at retail must provide buyers
107.24with notification forms and informational materials including requirements regarding
107.25wells, their location, construction, and disclosure. The commissioner must provide the
107.26notification forms and informational materials to the sellers.
107.27(e) A person may not construct a monitoring well until a permit is issued by the
107.28commissioner for the construction. If after obtaining a permit an attempt to construct a
107.29well is unsuccessful, a new permit is not required as long as the initial permit is modified
107.30to indicate the location of the successful well.
107.31(f) When the operation of a well will require an appropriation permit from the
107.32commissioner of natural resources, a person may not begin construction of the well until
107.33the person submits the following information to the commissioner of natural resources:
107.34(1) the location of the well;
107.35(2) the formation or aquifer that will serve as the water source;
108.1(3) the maximum daily, seasonal, and annual pumpage rates and volumes that will
108.2be requested in the appropriation permit; and
108.3(4) other information requested by the commissioner of natural resources that
108.4is necessary to conduct the preliminary assessment required under section 103G.287,
108.5subdivision 1, paragraph (c).
108.6The person may begin construction after receiving preliminary approval from the
108.7commissioner of natural resources.

108.8    Sec. 80. Minnesota Statutes 2012, section 103I.601, is amended by adding a
108.9subdivision to read:
108.10    Subd. 4a. Exploratory boring inspection fee. For each proposed exploratory
108.11boring identified on the map submitted under subdivision 4, an explorer must submit a fee
108.12of $2,000 to the commissioner of natural resources. The fee must be credited to the mineral
108.13data and inspections administration account established in section 93.60 and is appropriated
108.14to the commissioner of natural resources for the reasonable costs incurred for inspections
108.15of exploratory borings by the commissioner of natural resources or the commissioner's
108.16representative. The fee is nonrefundable, even if the exploratory boring is not conducted.

108.17    Sec. 81. Minnesota Statutes 2012, section 114D.50, subdivision 4, is amended to read:
108.18    Subd. 4. Expenditures; accountability. (a) A project receiving funding from the
108.19clean water fund must meet or exceed the constitutional requirements to protect, enhance,
108.20and restore water quality in lakes, rivers, and streams and to protect groundwater and
108.21drinking water from degradation. Priority may be given to projects that meet more than
108.22one of these requirements. A project receiving funding from the clean water fund shall
108.23include measurable outcomes, as defined in section 3.303, subdivision 10, and a plan for
108.24measuring and evaluating the results. A project must be consistent with current science
108.25and incorporate state-of-the-art technology.
108.26(b) Money from the clean water fund shall be expended to balance the benefits
108.27across all regions and residents of the state.
108.28(c) A state agency or other recipient of a direct appropriation from the clean
108.29water fund must compile and submit all information for proposed and funded projects
108.30or programs, including the proposed measurable outcomes and all other items required
108.31under section 3.303, subdivision 10, to the Legislative Coordinating Commission as soon
108.32as practicable or by January 15 of the applicable fiscal year, whichever comes first. The
108.33Legislative Coordinating Commission must post submitted information on the Web site
108.34required under section 3.303, subdivision 10, as soon as it becomes available. Information
109.1classified as not public under section 13D.05, subdivision 3, paragraph (d), is not required
109.2to be placed on the Web site.
109.3(d) Grants funded by the clean water fund must be implemented according to section
109.416B.98 and must account for all expenditures. Proposals must specify a process for any
109.5regranting envisioned. Priority for grant proposals must be given to proposals involving
109.6grants that will be competitively awarded.
109.7(e) Money from the clean water fund may only be spent on projects that benefit
109.8Minnesota waters.
109.9(f) When practicable, a direct recipient of an appropriation from the clean water fund
109.10shall prominently display on the recipient's Web site home page the legacy logo required
109.11under Laws 2009, chapter 172, article 5, section 10, as amended by Laws 2010, chapter
109.12361, article 3, section 5, accompanied by the phrase "Click here for more information."
109.13When a person clicks on the legacy logo image, the Web site must direct the person to
109.14a Web page that includes both the contact information that a person may use to obtain
109.15additional information, as well as a link to the Legislative Coordinating Commission Web
109.16site required under section 3.303, subdivision 10.
109.17(g) Future eligibility for money from the clean water fund is contingent upon a state
109.18agency or other recipient satisfying all applicable requirements in this section, as well as
109.19any additional requirements contained in applicable session law.
109.20(h) Money from the clean water fund may be used to leverage federal funds through
109.21execution of formal project partnership agreements with federal agencies consistent with
109.22respective federal agency partnership agreement requirements.

109.23    Sec. 82. [115.84] WASTEWATER LABORATORY CERTIFICATION.
109.24    Subdivision 1. Wastewater laboratory certification required. (a) Laboratories
109.25performing wastewater or water analytical laboratory work, the results of which are
109.26reported to the agency to determine compliance with a national pollutant discharge
109.27elimination system (NPDES) permit condition or other regulatory document, must be
109.28certified according to this section.
109.29(b) This section does not apply to:
109.30(1) laboratories that are private and for-profit;
109.31(2) laboratories that perform drinking water analyses; or
109.32(3) laboratories that perform remediation program analyses, such as Superfund or
109.33petroleum analytical work.
109.34(c) Until adoption of rules under subdivision 2, laboratories required to be certified
109.35under this section that submit data to the agency must register by submitting registration
110.1information required by the agency or be certified or accredited by a recognized authority,
110.2such as the commissioner of health under sections 144.97 to 144.99, for the analytical
110.3methods required by agency.
110.4    Subd 2. Rules. The agency may adopt rules to govern certification of laboratories
110.5according to this section. Notwithstanding section 16A.1283, the agency may adopt
110.6rules establishing fees.
110.7    Subd. 3. Fees. (a) Until the agency adopts a rule establishing fees for certification,
110.8the agency shall collect fees from laboratories registering with the agency but not
110.9accredited by the commissioner of health under sections 144.97 to 144.99, in amounts
110.10necessary to cover the reasonable costs of the certification program, including reviewing
110.11applications, issuing certifications, and conducting audits and compliance assistance.
110.12(b) Fees under this section must be based on the number, type, and complexity of
110.13analytical methods that laboratories are certified to perform.
110.14(c) Revenue from fees charged by the agency for certification shall be credited to
110.15the environmental fund.
110.16    Subd. 4. Enforcement. (a) The commissioner may deny, suspend, or revoke
110.17wastewater laboratory certification for, but is not limited to, any of the following reasons:
110.18fraud, failure to follow applicable requirements, failure to respond to documented
110.19deficiencies or complete corrective actions necessary to address deficiencies, failure to pay
110.20certification fees, or other violations of federal or state law.
110.21(b) This section and the rules adopted under it may be enforced by any means
110.22provided in section 115.071.

110.23    Sec. 83. Minnesota Statutes 2012, section 115A.1320, subdivision 1, is amended to read:
110.24    Subdivision 1. Duties of the agency. (a) The agency shall administer sections
110.25115A.1310 to 115A.1330.
110.26    (b) The agency shall establish procedures for:
110.27    (1) receipt and maintenance of the registration statements and certifications filed
110.28with the agency under section 115A.1312; and
110.29    (2) making the statements and certifications easily available to manufacturers,
110.30retailers, and members of the public.
110.31    (c) The agency shall annually review the value of the following variables that are
110.32part of the formula used to calculate a manufacturer's annual registration fee under section
110.33115A.1314, subdivision 1 :
110.34    (1) the proportion of sales of video display devices sold to households that
110.35manufacturers are required to recycle;
111.1    (2) the estimated per-pound price of recycling covered electronic devices sold to
111.2households;
111.3    (3) the base registration fee; and
111.4    (4) the multiplier established for the weight of covered electronic devices collected
111.5in section 115A.1314, subdivision 1, paragraph (d). If the agency determines that any of
111.6these values must be changed in order to improve the efficiency or effectiveness of the
111.7activities regulated under sections 115A.1312 to 115A.1330, the agency shall submit
111.8recommended changes and the reasons for them to the chairs of the senate and house of
111.9representatives committees with jurisdiction over solid waste policy.
111.10    (d) By January 15 each year, beginning in 2008, the agency shall calculate estimated
111.11sales of video display devices sold to households by each manufacturer during the preceding
111.12program year, based on national sales data, and forward the estimates to the department.
111.13    (e) The agency shall provide a report to the governor and the legislature on the
111.14implementation of sections 115A.1310 to 115A.1330. For each program year, the report
111.15must discuss the total weight of covered electronic devices recycled and a summary
111.16of information in the reports submitted by manufacturers and recyclers under section
111.17115A.1316 . The report must also discuss the various collection programs used by
111.18manufacturers to collect covered electronic devices; information regarding covered
111.19electronic devices that are being collected by persons other than registered manufacturers,
111.20collectors, and recyclers; and information about covered electronic devices, if any, being
111.21disposed of in landfills in this state. The report must include a description of enforcement
111.22actions under sections 115A.1310 to 115A.1330. The agency may include in its report
111.23other information received by the agency regarding the implementation of sections
111.24115A.1312 to 115A.1330. The report must be done in conjunction with the report required
111.25under section ~~115D.10~~ 115A.121.
111.26    (f) The agency shall promote public participation in the activities regulated under
111.27sections 115A.1312 to 115A.1330 through public education and outreach efforts.
111.28    (g) The agency shall enforce sections 115A.1310 to 115A.1330 in the manner
111.29provided by sections 115.071, subdivisions 1, 3, 4, 5, and 6; and 116.072, except for those
111.30provisions enforced by the department, as provided in subdivision 2. The agency may
111.31revoke a registration of a collector or recycler found to have violated sections 115A.1310
111.32to 115A.1330.
111.33    (h) The agency shall facilitate communication between counties, collection and
111.34recycling centers, and manufacturers to ensure that manufacturers are aware of video
111.35display devices available for recycling.
112.1    (i) The agency shall develop a form retailers must use to report information to
112.2manufacturers under section 115A.1318 and post it on the agency's Web site.
112.3    (j) The agency shall post on its Web site the contact information provided by each
112.4manufacturer under section 115A.1318, paragraph (e).

112.5    Sec. 84. [115A.141] CARPET PRODUCT STEWARDSHIP PROGRAM;
112.6STEWARDSHIP PLAN.
112.7    Subdivision 1. Definitions. For purposes of this section, the following terms have
112.8the meanings given:
112.9(1) "brand" means a name, symbol, word, or mark that identifies carpet, rather than its
112.10components, and attributes the carpet to the owner or licensee of the brand as the producer;
112.11(2) "carpet" means a manufactured article that is used in commercial or single or
112.12multifamily residential buildings, is affixed or placed on the floor or building walking
112.13surface as a decorative or functional building interior or exterior feature, and is primarily
112.14constructed of a top visible surface of synthetic face fibers or yarns or tufts attached to a
112.15backing system derived from synthetic or natural materials. Carpet includes, but is not
112.16limited to, a commercial or residential broadloom carpet or modular carpet tiles. Carpet
112.17includes a pad or underlayment used in conjunction with a carpet. Carpet does not include
112.18handmade rugs, area rugs, or mats;
112.19(3) "discarded carpet" means carpet that is no longer used for its manufactured
112.20purpose;
112.21(4) "producer" means a person that:
112.22(i) has legal ownership of the brand, brand name, or cobrand of carpet sold in the state;
112.23(ii) imports carpet branded by a producer that meets subclause (i) when the producer
112.24has no physical presence in the United States;
112.25(iii) if subclauses (i) and (ii) do not apply, makes unbranded carpet that is sold
112.26in the state; or
112.27(iv) sells carpet at wholesale or retail, does not have legal ownership of the brand,
112.28and elects to fulfill the responsibilities of the producer for the carpet by certifying that
112.29election in writing to the commissioner;
112.30(5) "recycling" means the process of collecting and preparing recyclable materials and
112.31reusing the materials in their original form or using them in manufacturing processes that
112.32do not cause the destruction of recyclable materials in a manner that precludes further use;
112.33(6) "retailer" means any person who offers carpet for sale at retail in the state;
113.1(7) "reuse" means donating or selling a collected carpet back into the market for
113.2its original intended use, when the carpet retains its original purpose and performance
113.3characteristics;
113.4(8) "sale" or "sell" means transfer of title of carpet for consideration, including a
113.5remote sale conducted through a sales outlet, catalog, Web site, or similar electronic
113.6means. Sale or sell includes a lease through which carpet is provided to a consumer by a
113.7producer, wholesaler, or retailer;
113.8(9) "stewardship assessment" means the amount added to the purchase price of
113.9carpet sold in the state that is necessary to cover the cost of collecting, transporting, and
113.10processing postconsumer carpets by the producer or stewardship organization pursuant to
113.11a product stewardship program;
113.12(10) "stewardship organization" means an organization appointed by one or more
113.13producers to act as an agent on behalf of the producer to design, submit, and administer a
113.14product stewardship program under this section; and
113.15(11) "stewardship plan" means a detailed plan describing the manner in which a
113.16product stewardship program under subdivision 2 will be implemented.
113.17    Subd. 2. Product stewardship program. For all carpet sold in the state, producers
113.18must, individually or through a stewardship organization, implement and finance a
113.19statewide product stewardship program that manages carpet by reducing carpet's waste
113.20generation, promoting its reuse and recycling, and providing for negotiation and execution
113.21of agreements to collect, transport, and process carpet for end-of-life recycling and reuse.
113.22    Subd. 3. Requirement for sale. (a) On and after July 1, 2015, no producer,
113.23wholesaler, or retailer may sell carpet or offer carpet for sale in the state unless the carpet's
113.24producer participates in an approved stewardship plan, either individually or through a
113.25stewardship organization.
113.26(b) Each producer must operate a product stewardship program approved by the
113.27agency or enter into an agreement with a stewardship organization to operate, on the
113.28producer's behalf, a product stewardship program approved by the agency.
113.29    Subd. 4. Requirement to submit plan. (a) On or before March 1, 2015, and before
113.30offering carpet for sale in the state, a producer must submit a stewardship plan to the
113.31agency and receive approval of the plan or must submit documentation to the agency that
113.32demonstrates the producer has entered into an agreement with a stewardship organization
113.33to be an active participant in an approved product stewardship program as described in
113.34subdivision 2. A stewardship plan must include all elements required under subdivision 5.
114.1(b) At least every three years, a producer or stewardship organization operating a
114.2product stewardship program must update the stewardship plan and submit the updated
114.3plan to the agency for review and approval.
114.4(c) It is the responsibility of the entities responsible for each stewardship plan to
114.5notify the agency within 30 days of any significant changes or modifications to the plan or
114.6its implementation. Within 30 days of the notification, a written plan revision must be
114.7submitted to the agency for review and approval.
114.8    Subd. 5. Stewardship plan content. A stewardship plan must contain:
114.9(1) certification that the product stewardship program will accept all discarded carpet
114.10regardless of which producer produced the carpet and its individual components;
114.11(2) contact information for the individual and the entity submitting the plan and for
114.12all producers participating in the product stewardship program;
114.13(3) a description of the methods by which discarded carpet will be collected in all
114.14areas in the state without relying on end-of-life fees, including an explanation of how the
114.15collection system will be convenient and adequate to serve the needs of small businesses
114.16and residents in the seven-county metropolitan area initially and expanding to areas
114.17outside of the seven-county metropolitan area starting July 1, 2016;
114.18(4) a description of how the adequacy of the collection program will be monitored
114.19and maintained;
114.20(5) the names and locations of collectors, transporters, and recycling facilities that
114.21will manage discarded carpet;
114.22(6) a description of how the discarded carpet and the carpet's components will
114.23be safely and securely transported, tracked, and handled from collection through final
114.24recycling and processing;
114.25(7) a description of the method that will be used to reuse, deconstruct, or recycle
114.26the discarded carpet to ensure that the product's components, to the extent feasible, are
114.27transformed or remanufactured into finished products for use;
114.28(8) a description of the promotion and outreach activities that will be used to
114.29encourage participation in the collection and recycling programs and how the activities'
114.30effectiveness will be evaluated and the program modified, if necessary;
114.31(9) the proposed stewardship assessment. The producer or stewardship organization
114.32shall propose a stewardship assessment for any carpet sold in the state. The proposed
114.33stewardship assessment shall be reviewed by an independent auditor to ensure that
114.34the assessment does not exceed the costs of the product stewardship program and the
114.35independent auditor shall recommend an amount for the stewardship assessment;
115.1(10) evidence of adequate insurance and financial assurance that may be required for
115.2collection, handling, and disposal operations;
115.3(11) five-year performance goals, including an estimate of the percentage of
115.4discarded carpet that will be collected, reused, and recycled during each of the first five
115.5years of the stewardship plan. The performance goals must include a specific escalating
115.6goal for the amount of discarded carpet that will be collected and recycled and reused
115.7during each year of the plan. The performance goals must be based on:
115.8(i) the most recent collection data available for the state;
115.9(ii) the amount of carpet disposed of annually;
115.10(iii) the weight of the carpet that is expected to be available for collection annually;
115.11and
115.12(iv) actual collection data from other existing stewardship programs.
115.13The stewardship plan must state the methodology used to determine these goals;
115.14(12) carpet design changes that will be considered to reduce toxicity, water use, or
115.15energy use or to increase recycled content, recyclability, or carpet longevity; and
115.16(13) a discussion of market development opportunities to expand use of recovered
115.17carpet, with consideration of expanding processing activity near areas of collection.
115.18    Subd. 6. Consultation required. (a) Each stewardship organization or individual
115.19producer submitting a stewardship plan must consult with stakeholders including retailers,
115.20installers, collectors, recyclers, local government, customers, and citizens during the
115.21development of the plan, solicit stakeholder comments, and attempt to address any
115.22stakeholder concerns regarding the plan before submitting the plan to the agency for review.
115.23(b) The producer or stewardship organization must invite comments from local
115.24governments, communities, and citizens to report their satisfaction with services, including
115.25education and outreach, provided by the product stewardship program. The information
115.26must be submitted to the agency and used by the agency in reviewing proposed updates or
115.27changes to the stewardship plan.
115.28    Subd. 7. Agency review and approval. (a) Within 90 days after receipt of a proposed
115.29stewardship plan, the agency shall determine whether the plan complies with subdivision
115.305. If the agency approves a plan, the agency shall notify the applicant of the plan approval
115.31in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of
115.32the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must
115.33submit a revised plan to the agency within 60 days after receiving notice of rejection.
115.34(b) Any proposed changes to a stewardship plan must be approved by the agency
115.35in writing.
116.1    Subd. 8. Plan availability. All draft and approved stewardship plans shall be
116.2placed on the agency's Web site for at least 30 days and made available at the agency's
116.3headquarters for public review and comment.
116.4    Subd. 9. Conduct authorized. A producer or stewardship organization that
116.5organizes collection, transport, and processing of carpet under this section is immune
116.6from liability for the conduct under state laws relating to antitrust, restraint of trade,
116.7unfair trade practices, and other regulation of trade or commerce only to the extent that
116.8the conduct is necessary to plan and implement the producer's or organization's chosen
116.9organized collection or recycling system.
116.10    Subd. 10. Responsibility of producers. (a) On and after the date of implementation
116.11of a product stewardship program under this section, a producer of carpet must add the
116.12stewardship assessment, as established according to subdivision 5, clause (9), to the cost
116.13of the carpet sold to retailers and distributors in the state by the producer.
116.14(b) Producers of carpet or the stewardship organization shall provide consumers
116.15with educational materials regarding the stewardship assessment and product stewardship
116.16program. The materials must include, but are not limited to, information regarding available
116.17end-of-life management options for carpet offered through the product stewardship
116.18program and information that notifies consumers that a charge for the operation of the
116.19product stewardship program is included in the purchase price of carpet sold in the state.
116.20    Subd. 11. Responsibility of retailers. (a) On and after July 1, 2015, no carpet may
116.21be sold in the state unless the carpet's producer is participating in an approved stewardship
116.22plan.
116.23(b) On and after the implementation date of a product stewardship program under
116.24this section, each retailer or distributor, as applicable, must ensure that the full amount of
116.25the stewardship assessment added to the cost of carpet by producers under subdivision 10
116.26is included inthe purchase price of all carpet sold in the state.
116.27(c) Any retailer may participate, on a voluntary basis, as a designated collection
116.28point pursuant to a product stewardship program under this section and in accordance
116.29with applicable law.
116.30(d) No retailer or distributor shall be found to be in violation of this subdivision if,
116.31on the date the carpet was ordered from the producer or its agent, the producer was listed
116.32as compliant on the agency's Web site according to subdivision 14.
116.33    Subd. 12. Stewardship reports. Beginning October 1, 2016, producers of carpet
116.34sold in the state must individually or through a stewardship organization submit an
116.35annual report to the agency describing the product stewardship program. At a minimum,
116.36the report must contain:
117.1(1) a description of the methods used to collect, transport, and process carpet in all
117.2regions of the state;
117.3(2) the weight of all carpet collected in all regions of the state and a comparison to
117.4the performance goals and recycling rates established in the stewardship plan;
117.5(3) the amount of unwanted carpet collected in the state by method of disposition,
117.6including reuse, recycling, and other methods of processing;
117.7(4) identification of the facilities processing carpet and the number and weight
117.8processed at each facility;
117.9(5) an evaluation of the program's funding mechanism;
117.10(6) samples of educational materials provided to consumers and an evaluation of the
117.11effectiveness of the materials and the methods used to disseminate the materials; and
117.12(7) a description of progress made toward achieving carpet design changes according
117.13to subdivision 5, clause (12).
117.14    Subd. 13. Sales information. Sales information provided to the commissioner
117.15under this section is classified as private or nonpublic data, as specified in section
117.16115A.06, subdivision 13.
117.17    Subd. 14. Agency responsibilities. The agency shall provide, on its Web site, a
117.18list of all compliant producers and brands participating in stewardship plans that the
117.19agency has approved and a list of all producers and brands the agency has identified as
117.20noncompliant with this section.
117.21    Subd. 15. Local government responsibilities. (a) A city, county, or other public
117.22agency may choose to participate voluntarily in a carpet product stewardship program.
117.23(b) Cities, counties, and other public agencies are encouraged to work with producers
117.24and stewardship organizations to assist in meeting product stewardship program recycling
117.25obligations, by providing education and outreach or using other strategies.
117.26(c) A city, county, or other public agency that participates in a product stewardship
117.27program must report for the first year of the program to the agency using the reporting
117.28form provided by the agency on the cost savings as a result of participation and describe
117.29how the savings were used.
117.30    Subd. 16. Administrative fee. (a) The stewardship organization or individual
117.31producer submitting a stewardship plan shall pay an annual administrative fee to the
117.32commissioner. The agency may establish a variable fee based on relevant factors,
117.33including, but not limited to, the portion of carpet sold in the state by members of the
117.34organization compared to the total amount of carpet sold in the state by all organizations
117.35submitting a stewardship plan.
118.1    (b) Prior to July 1, 2015, and before July 1 annually thereafter, the agency shall
118.2identify the costs it incurs under this section. The agency shall set the fee at an amount
118.3that, when paid by every stewardship organization or individual producer that submits a
118.4stewardship plan, is adequate to reimburse the agency's full costs of administering this
118.5section. The total amount of annual fees collected under this subdivision must not exceed
118.6the amount necessary to reimburse costs incurred by the agency to administer this section.
118.7    (c) A stewardship organization or individual producer subject to this subdivision
118.8must pay the agency's administrative fee under paragraph (a) on or before July 1, 2015 and
118.9annually thereafter. Each year after the initial payment, the annual administrative fee may
118.10not exceed five percent of the aggregate stewardship assessment added to the cost of all
118.11carpet sold by producers in the state for the preceding calendar year.
118.12    (d) All fees received under this section shall be deposited to the state treasury and
118.13credited to a product stewardship account in the Special Revenue Fund. Money in the
118.14account is appropriated to the commissioner for the purpose of reimbursing the agency's
118.15costs incurred to administer this section.

118.16    Sec. 85. [115A.1415] ARCHITECTURAL PAINT; PRODUCT STEWARDSHIP
118.17PROGRAM; STEWARDSHIP PLAN.
118.18    Subdivision 1. Definitions. For purposes of this section, the following terms have
118.19the meanings given:
118.20(1) "architectural paint" means interior and exterior architectural coatings sold in
118.21containers of five gallons or less. Architectural paint does not include industrial coatings,
118.22original equipment coatings, or specialty coatings;
118.23(2) "brand" means a name, symbol, word, or mark that identifies architectural paint,
118.24rather than its components, and attributes the paint to the owner or licensee of the brand as
118.25the producer;
118.26(3) "discarded paint" means architectural paint that is no longer used for its
118.27manufactured purpose;
118.28(4) "producer" means a person that:
118.29(i) has legal ownership of the brand, brand name, or cobrand of architectural paint
118.30sold in the state;
118.31(ii) imports architectural paint branded by a producer that meets subclause (i) when
118.32the producer has no physical presence in the United States;
118.33(iii) if subclauses (i) and (ii) do not apply, makes unbranded architectural paint
118.34that is sold in the state; or
119.1(iv) sells architectural paint at wholesale or retail, does not have legal ownership of
119.2the brand, and elects to fulfill the responsibilities of the producer for the architectural paint
119.3by certifying that election in writing to the commissioner;
119.4(5) "recycling" means the process of collecting and preparing recyclable materials and
119.5reusing the materials in their original form or using them in manufacturing processes that
119.6do not cause the destruction of recyclable materials in a manner that precludes further use;
119.7(6) "retailer" means any person who offers architectural paint for sale at retail in
119.8the state;
119.9(7) "reuse" means donating or selling collected architectural paint back into the
119.10market for its original intended use, when the architectural paint retains its original
119.11purpose and performance characteristics;
119.12(8) "sale" or "sell" means transfer of title of architectural paint for consideration,
119.13including a remote sale conducted through a sales outlet, catalog, Web site, or similar
119.14electronic means. Sale or sell includes a lease through which architectural paint is
119.15provided to a consumer by a producer, wholesaler, or retailer;
119.16(9) "stewardship assessment" means the amount added to the purchase price of
119.17architectural paint sold in the state that is necessary to cover the cost of collecting,
119.18transporting, and processing postconsumer architectural paint by the producer or
119.19stewardship organization pursuant to a product stewardship program;
119.20(10) "stewardship organization" means an organization appointed by one or more
119.21producers to act as an agent on behalf of the producer to design, submit, and administer a
119.22product stewardship program under this section; and
119.23(11) "stewardship plan" means a detailed plan describing the manner in which a
119.24product stewardship program under subdivision 2 will be implemented.
119.25    Subd. 2. Product stewardship program. For architectural paint sold in the state,
119.26producers must, individually or through a stewardship organization, implement and
119.27finance a statewide product stewardship program that manages the architectural paint by
119.28reducing the paint's waste generation, promoting its reuse and recycling, and providing for
119.29negotiation and execution of agreements to collect, transport, and process the architectural
119.30paint for end-of-life recycling and reuse.
119.31    Subd. 3. Requirement for sale. (a) On and after July 1, 2014, or three months after
119.32program plan approval, whichever is sooner, no producer, wholesaler, or retailer may sell
119.33or offer for sale in the state architectural paint unless the paint's producer participates in an
119.34approved stewardship plan, either individually or through a stewardship organization.
120.1(b) Each producer must operate a product stewardship program approved by the
120.2agency or enter into an agreement with a stewardship organization to operate, on the
120.3producer's behalf, a product stewardship program approved by the agency.
120.4    Subd. 4. Requirement to submit plan. (a) On or before March 1, 2014, and before
120.5offering architectural paint for sale in the state, a producer must submit a stewardship
120.6plan to the agency and receive approval of the plan or must submit documentation to the
120.7agency that demonstrates the producer has entered into an agreement with a stewardship
120.8organization to be an active participant in an approved product stewardship program as
120.9described in subdivision 2. A stewardship plan must include all elements required under
120.10subdivision 5.
120.11(b) An amendment to the plan, if determined necessary by the commissioner, must
120.12be submitted every five years.
120.13(c) It is the responsibility of the entities responsible for each stewardship plan to
120.14notify the agency within 30 days of any significant changes or modifications to the plan or
120.15its implementation. Within 30 days of the notification, a written plan revision must be
120.16submitted to the agency for review and approval.
120.17    Subd. 5. Stewardship plan content. A stewardship plan must contain:
120.18(1) certification that the product stewardship program will accept all discarded
120.19paint regardless of which producer produced the architectural paint and its individual
120.20components;
120.21(2) contact information for the individual and the entity submitting the plan, a list of
120.22all producers participating in the product stewardship program, and the brands covered by
120.23the product stewardship program;
120.24(3) a description of the methods by which the discarded paint will be collected in all
120.25areas in the state without relying on end-of-life fees, including an explanation of how the
120.26collection system will be convenient and adequate to serve the needs of small businesses
120.27and residents in both urban and rural areas on an ongoing basis and a discussion of how
120.28the existing household hazardous waste infrastructure will be considered when selecting
120.29collection sites;
120.30(4) a description of how the adequacy of the collection program will be monitored
120.31and maintained;
120.32(5) the names and locations of collectors, transporters, and recyclers that will
120.33manage discarded paint;
120.34(6) a description of how the discarded paint and the paint's components will be
120.35safely and securely transported, tracked, and handled from collection through final
120.36recycling and processing;
121.1(7) a description of the method that will be used to reuse, deconstruct, or recycle
121.2the discarded paint to ensure that the paint's components, to the extent feasible, are
121.3transformed or remanufactured into finished products for use;
121.4(8) a description of the promotion and outreach activities that will be used to
121.5encourage participation in the collection and recycling programs and how the activities'
121.6effectiveness will be evaluated and the program modified, if necessary;
121.7(9) the proposed stewardship assessment. The producer or stewardship organization
121.8shall propose a uniform stewardship assessment for any architectural paint sold in the
121.9state. The proposed stewardship assessment shall be reviewed by an independent auditor
121.10to ensure that the assessment does not exceed the costs of the product stewardship program
121.11and the independent auditor shall recommend an amount for the stewardship assessment.
121.12The agency must approve the stewardship assessment;
121.13(10) evidence of adequate insurance and financial assurance that may be required for
121.14collection, handling, and disposal operations;
121.15(11) five-year performance goals, including an estimate of the percentage of
121.16discarded paint that will be collected, reused, and recycled during each of the first five
121.17years of the stewardship plan. The performance goals must include a specific goal for the
121.18amount of discarded paint that will be collected and recycled and reused during each year
121.19of the plan. The performance goals must be based on:
121.20(i) the most recent collection data available for the state;
121.21(ii) the estimated amount of architectural paint disposed of annually;
121.22(iii) the weight of the architectural paint that is expected to be available for collection
121.23annually; and
121.24(iv) actual collection data from other existing stewardship programs.
121.25The stewardship plan must state the methodology used to determine these goals; and
121.26(12) a discussion of the status of end markets for collected architectural paint and
121.27what, if any, additional end markets are needed to improve the functioning of the program.
121.28    Subd. 6. Consultation required. Each stewardship organization or individual
121.29producer submitting a stewardship plan must consult with stakeholders including
121.30retailers, contractors, collectors, recyclers, local government, and customers during the
121.31development of the plan.
121.32    Subd. 7. Agency review and approval. (a) Within 90 days after receipt of a proposed
121.33stewardship plan, the agency shall determine whether the plan complies with subdivision
121.344. If the agency approves a plan, the agency shall notify the applicant of the plan approval
121.35in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of
122.1the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must
122.2submit a revised plan to the agency within 60 days after receiving notice of rejection.
122.3(b) Any proposed changes to a stewardship plan must be approved by the agency
122.4in writing.
122.5    Subd. 8. Plan availability. All draft and approved stewardship plans shall be
122.6placed on the agency's Web site for at least 30 days and made available at the agency's
122.7headquarters for public review and comment.
122.8    Subd. 9. Conduct authorized. A producer or stewardship organization that
122.9organizes collection, transport, and processing of architectural paint under this section
122.10is immune from liability for the conduct under state laws relating to antitrust, restraint
122.11of trade, unfair trade practices, and other regulation of trade or commerce only to the
122.12extent that the conduct is necessary to plan and implement the producer's or organization's
122.13chosen organized collection or recycling system.
122.14    Subd. 10. Responsibility of producers. (a) On and after the date of implementation
122.15of a product stewardship program according to this section, a producer of architectural
122.16paint must add the stewardship assessment, as established under subdivision 5, clause (9),
122.17to the cost of architectural paint sold to retailers and distributors in the state by the producer.
122.18(b) Producers of architectural paint or the stewardship organization shall provide
122.19consumers with educational materials regarding the stewardship assessment and product
122.20stewardship program. The materials must include, but are not limited to, information
122.21regarding available end-of-life management options for architectural paint offered through
122.22the product stewardship program and information that notifies consumers that a charge
122.23for the operation of the product stewardship program is included in the purchase price of
122.24architectural paint sold in the state.
122.25    Subd. 11. Responsibility of retailers. (a) On and after July 1, 2014, or three months
122.26after program plan approval, whichever is sooner, no architectural paint may be sold in the
122.27state unless the paint's producer is participating in an approved stewardship plan.
122.28(b) On and after the implementation date of a product stewardship program
122.29according to this section, each retailer or distributor, as applicable, must ensure that the
122.30full amount of the stewardship assessment added to the cost of carpet by producers under
122.31subdivision 10 is included inthe purchase price of all architectural paint sold in the state.
122.32(c) Any retailer may participate, on a voluntary basis, as a designated collection
122.33point pursuant to a product stewardship program under this section and in accordance
122.34with applicable law.
123.1(d) No retailer or distributor shall be found to be in violation of this subdivision if,
123.2on the date the architectural paint was ordered from the producer or its agent, the producer
123.3was listed as compliant on the agency's Web site according to subdivision 14.
123.4    Subd. 12. Stewardship reports. Beginning October 1, 2015, producers of
123.5architectural paint sold in the state must individually or through a stewardship organization
123.6submit an annual report to the agency describing the product stewardship program. At a
123.7minimum, the report must contain:
123.8(1) a description of the methods used to collect, transport, and process architectural
123.9paint in all regions of the state;
123.10(2) the weight of all architectural paint collected in all regions of the state and a
123.11comparison to the performance goals and recycling rates established in the stewardship
123.12plan;
123.13(3) the amount of unwanted architectural paint collected in the state by method of
123.14disposition, including reuse, recycling, and other methods of processing;
123.15(4) samples of educational materials provided to consumers and an evaluation of the
123.16effectiveness of the materials and the methods used to disseminate the materials; and
123.17(5) an independent financial audit.
123.18    Subd. 13. Sales information. Sales information provided to the commissioner
123.19under this section is classified as private or nonpublic data, as specified in section
123.20115A.06, subdivision 13.
123.21    Subd. 14. Agency responsibilities. The agency shall provide, on its Web site, a
123.22list of all compliant producers and brands participating in stewardship plans that the
123.23agency has approved and a list of all producers and brands the agency has identified as
123.24noncompliant with this section.
123.25    Subd. 15. Local government responsibilities. (a) A city, county, or other public
123.26agency may choose to participate voluntarily in a product stewardship program.
123.27(b) Cities, counties, and other public agencies are encouraged to work with producers
123.28and stewardship organizations to assist in meeting product stewardship program reuse and
123.29recycling obligations, by providing education and outreach or using other strategies.
123.30(c) A city, county, or other public agency that participates in a product stewardship
123.31program must report for the first year of the program to the agency using the reporting
123.32form provided by the agency on the cost savings as a result of participation and describe
123.33how the savings were used.
123.34    Subd. 16. Administrative fee. (a) The stewardship organization or individual
123.35producer submitting a stewardship plan shall pay an annual administrative fee to the
123.36commissioner. The agency may establish a variable fee based on relevant factors,
124.1including, but not limited to, the portion of architectural paint sold in the state by members
124.2of the organization compared to the total amount of architectural paint sold in the state by
124.3all organizations submitting a stewardship plan.
124.4    (b) Prior to July 1, 2014, and before July 1 annually thereafter, the agency shall
124.5identify the costs it incurs under this section. The agency shall set the fee at an amount
124.6that, when paid by every stewardship organization or individual producer that submits a
124.7stewardship plan, is adequate to reimburse the agency's full costs of administering this
124.8section. The total amount of annual fees collected under this subdivision must not exceed
124.9the amount necessary to reimburse costs incurred by the agency to administer this section.
124.10    (c) A stewardship organization or individual producer subject to this subdivision
124.11must pay the agency's administrative fee under paragraph (a) on or before July 1, 2014 and
124.12annually thereafter. Each year after the initial payment, the annual administrative fee may
124.13not exceed five percent of the aggregate stewardship assessment added to the cost of all
124.14architectural paint sold by producers in the state for the preceding calendar year.
124.15    (d) All fees received under this section shall be deposited to the state treasury and
124.16credited to a product stewardship account in the Special Revenue Fund. Money in the
124.17account is appropriated to the commissioner for the purpose of reimbursing the agency's
124.18costs incurred to administer this section.

124.19    Sec. 86. [115A.142] PRIMARY BATTERIES; PRODUCT STEWARDSHIP
124.20PROGRAM; STEWARDSHIP PLAN.
124.21    Subdivision 1. Definitions. For purposes of this section, the following terms have
124.22the meaning given:
124.23(1) "brand" means a name, symbol, word, or mark that identifies a primary battery,
124.24rather than its components, and attributes the battery to the owner or licensee of the brand
124.25as the producer;
124.26(2) "discarded battery" means a primary battery that is no longer used for its
124.27manufactured purpose;
124.28    (3) "primary battery" means a battery weighing two kilograms or less that is not
124.29designed to be electrically recharged, including, but not limited to, alkaline manganese,
124.30carbon zinc, lithium, silver oxide, and zinc air batteries. Nonremovable batteries and
124.31medical devices as defined in the federal Food, Drug, and Cosmetic Act, United States
124.32Code, title 21, section 321(h), as amended, are exempted from this definition.
124.33(4) "producer" means a person that:
124.34(i) has legal ownership of the brand, brand name, or cobrand of a primary battery
124.35sold in the state;
125.1(ii) imports a primary battery branded by a producer that meets subclause (i) when
125.2the producer has no physical presence in the United States;
125.3(iii) if subclauses (i) and (ii) do not apply, makes an unbranded primary battery
125.4that is sold in the state; or
125.5(iv) sells a primary battery at wholesale or retail, does not have legal ownership
125.6of the brand, and elects to fulfill the responsibilities of the producer for the battery by
125.7certifying that election in writing to the commissioner;
125.8(5) "recycling" means the process of collecting and preparing recyclable materials and
125.9reusing the materials in their original form or using them in manufacturing processes that
125.10do not cause the destruction of recyclable materials in a manner that precludes further use;
125.11(6) "retailer" means any person who offers primary batteries for sale at retail in
125.12the state;
125.13(7) "sale" or "sell" means transfer of title of a primary battery for consideration,
125.14including a remote sale conducted through a sales outlet, catalog, Web site, or similar
125.15electronic means. Sale or sell includes a lease through which a primary battery is provided
125.16to a consumer by a producer, wholesaler, or retailer;
125.17(8) "stewardship organization" means an organization appointed by one or more
125.18producers to act as an agent on behalf of the producer to design, submit, and administer a
125.19product stewardship program under this section; and
125.20(9) "stewardship plan" means a detailed plan describing the manner in which a
125.21product stewardship program under subdivision 2 will be implemented.
125.22    Subd. 2. Product stewardship program. For each primary battery sold in the
125.23state, producers must, individually or through a stewardship organization, implement
125.24and finance a statewide product stewardship program that manages primary batteries by
125.25reducing primary battery waste generation, promoting primary battery recycling, and
125.26providing for negotiation and execution of agreements to collect, transport, and process
125.27primary batteries for end-of-life recycling.
125.28    Subd. 3. Requirement for sale. (a) On and after December 1, 2014, or three months
125.29after program plan approval, whichever is sooner, no producer, wholesaler, or retailer may
125.30sell or offer for sale in the state a primary battery unless the battery's producer participates
125.31in an approved stewardship plan, either individually or through a stewardship organization.
125.32(b) Each producer must operate a product stewardship program approved by the
125.33agency or enter into an agreement with a stewardship organization to operate, on the
125.34producer's behalf, a product stewardship program approved by the agency.
125.35    Subd. 4. Requirement to submit plan. (a) On or before August 1, 2014, and before
125.36offering a primary battery for sale in the state, a producer must submit a stewardship
126.1plan to the agency and receive approval of the plan or must submit documentation to the
126.2agency that demonstrates the producer has entered into an agreement with a stewardship
126.3organization to be an active participant in an approved product stewardship program as
126.4described in subdivision 2. A stewardship plan must include all elements required under
126.5subdivision 5.
126.6(b) An amendment to the plan, if determined necessary by the commissioner, must
126.7be submitted every five years.
126.8(c) It is the responsibility of the entities responsible for each stewardship plan to
126.9notify the agency within 30 days of any significant changes or modifications to the plan or
126.10its implementation. Within 30 days of the notification, a written plan revision must be
126.11submitted to the agency for review and approval.
126.12    Subd. 5. Stewardship plan content. A stewardship plan must contain:
126.13(1) certification that the product stewardship program will accept discarded primary
126.14batteries regardless of which producer produced the batteries and their individual
126.15components;
126.16(2) contact information for the individual and the entity submitting the plan, a list of
126.17all producers participating in the product stewardship program, and the brands covered by
126.18the product stewardship program;
126.19(3) a description of the methods by which the discarded primary batteries will
126.20be collected in all areas in the state without relying on end-of-life fees, including an
126.21explanation of how the collection system will be convenient and adequate to serve the
126.22needs of small businesses and residents in both urban and rural areas on an ongoing basis;
126.23(4) a description of how the adequacy of the collection program will be monitored
126.24and maintained;
126.25(5) the names and locations of collectors, transporters, and recyclers that will
126.26manage discarded batteries;
126.27(6) a description of how the discarded primary batteries and the batteries'
126.28components will be safely and securely transported, tracked, and handled from collection
126.29through final recycling and processing;
126.30(7) a description of the method that will be used to recycle the discarded primary
126.31batteries to ensure that the batteries' components, to the extent feasible, are transformed or
126.32remanufactured into finished batteries for use;
126.33(8) a description of the promotion and outreach activities that will be used to
126.34encourage participation in the collection and recycling programs and how the activities'
126.35effectiveness will be evaluated and the program modified, if necessary;
127.1(9) evidence of adequate insurance and financial assurance that may be required for
127.2collection, handling, and disposal operations;
127.3(10) five-year performance goals, including an estimate of the percentage of
127.4discarded primary batteries that will be collected, reused, and recycled during each of the
127.5first five years of the stewardship plan. The performance goals must include a specific
127.6escalating goal for the amount of discarded primary batteries that will be collected and
127.7recycled during each year of the plan. The performance goals must be based on:
127.8(i) the most recent collection data available for the state;
127.9(ii) the estimated amount of primary batteries disposed of annually;
127.10(iii) the weight of primary batteries that is expected to be available for collection
127.11annually;
127.12(iv) actual collection data from other existing stewardship programs; and
127.13    (v) the market share of the producers participating in the plan.
127.14The stewardship plan must state the methodology used to determine these goals; and
127.15(11) a discussion of the status of end markets for discarded batteries and what, if any,
127.16additional end markets are needed to improve the functioning of the program.
127.17    Subd. 6. Consultation required. Each stewardship organization or individual
127.18producer submitting a stewardship plan must consult with stakeholders including retailers,
127.19collectors, recyclers, local government, and customers during the development of the plan.
127.20    Subd. 7. Agency review and approval. (a) Within 90 days after receipt of a proposed
127.21stewardship plan, the agency shall determine whether the plan complies with subdivision
127.225. If the agency approves a plan, the agency shall notify the applicant of the plan approval
127.23in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of
127.24the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must
127.25submit a revised plan to the agency within 60 days after receiving notice of rejection.
127.26(b) Any proposed changes to a stewardship plan must be approved by the agency
127.27in writing.
127.28    Subd. 8. Plan availability. All draft and approved stewardship plans shall be
127.29placed on the agency's Web site for at least 30 days and made available at the agency's
127.30headquarters for public review and comment.
127.31    Subd. 9. Conduct authorized. A producer or stewardship organization that
127.32organizes collection, transport, and processing of primary batteries under this section
127.33is immune from liability for the conduct under state laws relating to antitrust, restraint
127.34of trade, unfair trade practices, and other regulation of trade or commerce only to the
127.35extent that the conduct is necessary to plan and implement the producer's or organization's
127.36chosen organized collection or recycling system.
128.1    Subd. 10. Responsibility of retailers. (a) On and after December 1, 2014, or three
128.2months after program plan approval, whichever is sooner, no primary battery may be sold
128.3in the state unless the battery's producer is participating in an approved stewardship plan.
128.4(b) Any retailer may participate, on a voluntary basis, as a designated collection
128.5point pursuant to a product stewardship program under this section and in accordance
128.6with applicable law.
128.7(c) No retailer or distributor shall be found to be in violation of this subdivision if,
128.8on the date the primary battery was ordered from the producer or its agent, the producer
128.9was listed as compliant on the agency's Web site according to subdivision 12.
128.10    Subd. 11. Stewardship reports. Beginning March 1, 2016, producers of primary
128.11batteries sold in the state must individually or through a stewardship organization
128.12submit an annual report to the agency describing the product stewardship program. At a
128.13minimum, the report must contain:
128.14(1) a description of the methods used to collect, transport, and process primary
128.15batteries in all regions of the state;
128.16(2) the weight of all primary batteries collected in all regions of the state and a
128.17comparison to the performance goals and recycling rates established in the stewardship
128.18plan;
128.19(3) the amount of discarded primary batteries collected in the state by method of
128.20disposition, including recycling, and other methods of processing;
128.21(4) samples of educational materials provided to consumers and an evaluation of the
128.22effectiveness of the materials and the methods used to disseminate the materials; and
128.23(5) an independent financial audit of the stewardship organization.
128.24    Subd. 12. Agency responsibilities. The agency shall provide, on its Web site, a
128.25list of all compliant producers and brands participating in stewardship plans that the
128.26agency has approved and a list of all producers and brands the agency has identified as
128.27noncompliant with this section.
128.28    Subd. 13. Sales information. Sales information provided to the commissioner
128.29under this section is classified as private or nonpublic data, as specified in section
128.30115A.06, subdivision 13.
128.31    Subd. 14. Local government responsibilities. (a) A city, county, or other public
128.32agency may choose to participate voluntarily in a product stewardship program.
128.33(b) Cities, counties, and other public agencies are encouraged to work with producers
128.34and stewardship organizations to assist in meeting product stewardship program recycling
128.35obligations, by providing education and outreach or using other strategies.
129.1(c) A city, county, or other public agency that participates in a product stewardship
129.2program must report for the first year of the program to the agency using the reporting
129.3form provided by the agency on the cost savings as a result of participation and describe
129.4how the savings were used.
129.5    Subd. 15. Administrative fee. (a) The stewardship organization or individual
129.6producer submitting a stewardship plan shall pay an annual administrative fee to the
129.7commissioner. The agency may establish a variable fee based on relevant factors,
129.8including, but not limited to, the portion of primary batteries sold in the state by members
129.9of the organization compared to the total amount of primary batteries sold in the state by
129.10all organizations submitting a stewardship plan.
129.11(b) Prior to July 1, 2015, and before July 1 annually thereafter, the agency shall
129.12identify the costs it incurs under this section. The agency shall set the fee at an amount
129.13that, when paid by every stewardship organization or individual producer that submits a
129.14stewardship plan, is adequate to reimburse the agency's full costs of administering this
129.15section. The total amount of annual fees collected under this subdivision must not exceed
129.16the amount necessary to reimburse costs incurred by the agency to administer this section.
129.17(c) A stewardship organization or individual producer subject to this subdivision
129.18must pay the agency's administrative fee under paragraph (a) on or before July 1, 2015
129.19and annually thereafter.
129.20(d) All fees received under this section shall be deposited to the state treasury and
129.21credited to a product stewardship account in the Special Revenue Fund. Money in the
129.22account is appropriated to the commissioner for the purpose of reimbursing the agency's
129.23costs incurred to administer this section.
129.24    Subd. 16. Exemption; medical device. The requirements of this section do not
129.25apply to a medical device as defined in the Food, Drug, and Cosmetic Act, United States
129.26Code, title 21, section 321, paragraph (h).
129.27    Subd. 17. Private enforcement. (a) The operator of a statewide product stewardship
129.28program established under subdivision 2 that incurs costs exceeding $5,000 to collect,
129.29handle, recycle, or properly dispose of discarded primary batteries sold or offered for sale
129.30in Minnesota by a producer who does not implement its own program or participate in a
129.31program implemented by a stewardship organization, may bring a civil action or actions
129.32to recover costs and fees as specified in paragraph (b) from each nonimplementing or
129.33nonparticipating producer who can reasonably be identified from a brand or marking on a
129.34used consumer battery or from other information.
129.35    (b) An action under paragraph (a) may be brought against one or more primary
129.36battery producers, provided that no such action may be commenced:
130.1    (1) prior to 60 days after written notice of the operator's intention to file suit has been
130.2provided to the agency and the defendant or defendants; or
130.3    (2) if the agency has commenced enforcement actions under subdivision 10 and is
130.4diligently pursuing such actions.
130.5    (c) In any action under paragraph (b), the plaintiff operator may recover from
130.6a defendant nonimplementing or nonparticipating primary battery producer costs the
130.7plaintiff incurred to collect, handle, recycle, or properly dispose of primary batteries
130.8reasonably identified as having originated from the defendant, plus the plaintiff's attorney
130.9fees and litigation costs.

130.10    Sec. 87. [115A.1425] REPORT TO LEGISLATURE AND GOVERNOR.
130.11As part of the report required under section 115A.121, the commissioner of the
130.12Pollution Control Agency shall provide a report to the governor and the legislature on the
130.13implementation of sections 115A.141, 115A.1415, and 115A.142.

130.14    Sec. 88. Minnesota Statutes 2012, section 115B.20, subdivision 6, is amended to read:
130.15    Subd. 6. Report to legislature. ~~Each year~~ By January 31 of each odd-numbered
130.16year, the commissioner of agriculture and the agency shall submit to the senate Finance
130.17Committee, the house of representatives Ways and Means Committee, the Environment
130.18and Natural Resources Committees of the senate and house of representatives, the Finance
130.19Division of the senate Committee on Environment and Natural Resources, and the house
130.20of representatives Committee on Environment and Natural Resources Finance, and the
130.21Environmental Quality Board a report detailing the activities for which money has been
130.22spent pursuant to this section during the previous fiscal year.
130.23EFFECTIVE DATE.This section is effective July 1, 2013.

130.24    Sec. 89. Minnesota Statutes 2012, section 115B.28, subdivision 1, is amended to read:
130.25    Subdivision 1. Duties. In addition to performing duties specified in sections
130.26115B.25 to 115B.37 or in other law, and subject to the limitations on disclosure contained
130.27in section 115B.35, the agency shall:
130.28(1) adopt rules, including rules governing practice and procedure before the agency,
130.29the form and procedure for applications for compensation, and procedures for claims
130.30investigations;
130.31(2) publicize the availability of compensation and application procedures on a
130.32statewide basis with special emphasis on geographical areas surrounding sites identified
131.1by the agency as having releases from a facility where a harmful substance was placed or
131.2came to be located prior to July 1, 1983;
131.3(3) collect, analyze, and make available to the public, in consultation with the
131.4Department of Health, the Pollution Control Agency, the University of Minnesota Medical
131.5and Public Health Schools, and the medical community, data regarding injuries relating to
131.6exposure to harmful substances; and
131.7(4) prepare and transmit ~~by December 31 of each year to the governor and~~ the
131.8~~legislature an annual~~ legislative report required under section 115B.20, subdivision
131.96, to include (i) a summary of agency activity under clause (3); (ii) data determined
131.10by the agency from actual cases, including but not limited to number of cases, actual
131.11compensation received by each claimant, types of cases, and types of injuries compensated,
131.12as they relate to types of harmful substances as well as length of exposure, but excluding
131.13identification of the claimants; (iii) all administrative costs associated with the business of
131.14the agency; and (iv) agency recommendations for legislative changes, further study, or any
131.15other recommendation aimed at improving the system of compensation.

131.16    Sec. 90. Minnesota Statutes 2012, section 115C.02, subdivision 4, is amended to read:
131.17    Subd. 4. Corrective action. "Corrective action" means an action taken to minimize,
131.18eliminate, or clean up a release to protect the public health and welfare or the environment.
131.19 Corrective action may include environmental covenants pursuant to chapter 114E, an
131.20affidavit required under section 116.48, subdivision 6, or similar notice of a release
131.21recorded with real property records.

131.22    Sec. 91. Minnesota Statutes 2012, section 115C.08, subdivision 4, is amended to read:
131.23    Subd. 4. Expenditures. (a) Money in the fund may only be spent:
131.24(1) to administer the petroleum tank release cleanup program established in this
131.25chapter;
131.26(2) for agency administrative costs under sections 116.46 to 116.50, sections
131.27115C.03 to 115C.06, and costs of corrective action taken by the agency under section
131.28115C.03 , including investigations;
131.29(3) for costs of recovering expenses of corrective actions under section 115C.04;
131.30(4) for training, certification, and rulemaking under sections 116.46 to 116.50;
131.31(5) for agency administrative costs of enforcing rules governing the construction,
131.32installation, operation, and closure of aboveground and underground petroleum storage
131.33tanks;
132.1(6) for reimbursement of the environmental response, compensation, and compliance
132.2account under subdivision 5 and section 115B.26, subdivision 4;
132.3(7) for administrative and staff costs as set by the board to administer the petroleum
132.4tank release program established in this chapter;
132.5(8) for corrective action performance audits under section 115C.093;
132.6(9) for contamination cleanup grants, as provided in paragraph (c);
132.7(10) to assess and remove abandoned underground storage tanks under section
132.8115C.094 and, if a release is discovered, to pay for the specific consultant and contractor
132.9services costs necessary to complete the tank removal project, including, but not limited
132.10to, excavation soil sampling, groundwater sampling, soil disposal, and completion of
132.11an excavation report; and
132.12(11) ~~for property acquisition by the agency when the agency has determined that~~
132.13~~purchasing a property where a release has occurred is the most appropriate corrective~~
132.14~~action. The~~ to acquire interests in real or personal property, including easements,
132.15environmental covenants under chapter 114E, and leases, that the agency determines are
132.16necessary for corrective actions or to ensure the protectiveness of corrective actions. A
132.17donation of an interest in real property to the agency is not effective until the agency
132.18executes a certificate of acceptance. The state is not liable under this chapter solely as a
132.19result of acquiring an interest in real property under this clause. Agency approval of an
132.20environmental covenant under chapter 114E is sufficient evidence of acceptance of an
132.21interest in real property when the agency is expressly identified as a holder in the covenant.
132.22 Acquisition of ~~all properties~~ real property under this clause, except environmental
132.23covenants under chapter 114E, is subject to approval by the board.
132.24(b) Except as provided in paragraph (c), money in the fund is appropriated to the
132.25board to make reimbursements or payments under this section.
132.26(c) In fiscal years 2010 and 2011, $3,700,000 is annually appropriated from the fund
132.27to the commissioner of employment and economic development for contamination cleanup
132.28grants under section 116J.554. Beginning in fiscal year 2012 and each year thereafter,
132.29$6,200,000 is annually appropriated from the fund to the commissioner of employment
132.30and economic development for contamination cleanup grants under section 116J.554. Of
132.31this amount, the commissioner may spend up to $225,000 annually for administration
132.32of the contamination cleanup grant program. The appropriation does not cancel and is
132.33available until expended. The appropriation shall not be withdrawn from the fund nor the
132.34fund balance reduced until the funds are requested by the commissioner of employment
132.35and economic development. The commissioner shall schedule requests for withdrawals
133.1from the fund to minimize the necessity to impose the fee authorized by subdivision 2.
133.2Unless otherwise provided, the appropriation in this paragraph may be used for:
133.3(1) project costs at a qualifying site if a portion of the cleanup costs are attributable
133.4to petroleum contamination or new and used tar and tar-like substances, including but not
133.5limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist
133.6primarily of hydrocarbons and are found in natural deposits in the earth or are distillates,
133.7fractions, or residues from the processing of petroleum crude or petroleum products as
133.8defined in section 296A.01; and
133.9(2) the costs of performing contamination investigation if there is a reasonable basis
133.10to suspect the contamination is attributable to petroleum or new and used tar and tar-like
133.11substances, including but not limited to bitumen and asphalt, but excluding bituminous or
133.12asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits
133.13in the earth or are distillates, fractions, or residues from the processing of petroleum crude
133.14or petroleum products as defined in section 296A.01.

133.15    Sec. 92. Minnesota Statutes 2012, section 115C.08, is amended by adding a subdivision
133.16to read:
133.17    Subd. 6. Disposition of property acquired for corrective action. (a) If the
133.18commissioner determines that real or personal property acquired by the agency for a
133.19corrective action is no longer needed for corrective action purposes, the commissioner may:
133.20(1) request the commissioner of administration to dispose of the property according
133.21to sections 16B.281 to 16B.287, subject to conditions the commissioner of the Pollution
133.22Control Agency determines necessary to protect the public health and welfare and the
133.23environment or to comply with federal law;
133.24(2) transfer the property to another state agency, a political subdivision, or a special
133.25purpose district as provided in paragraph (b); or
133.26(3) if required by federal law, take actions and dispose of the property according
133.27to federal law.
133.28(b) If the commissioner determines that real or personal property acquired by
133.29the agency for a corrective action must be operated, maintained, or monitored after
133.30completion of other phases of the corrective action, the commissioner may transfer
133.31ownership of the property to another state agency, a political subdivision, or a special
133.32purpose district that agrees to accept the property. A state agency, political subdivision,
133.33or special purpose district may accept and implement terms and conditions of a transfer
133.34under this paragraph. The commissioner may set terms and conditions for the transfer
133.35that the commissioner considers reasonable and necessary to ensure proper operation,
134.1maintenance, and monitoring of corrective actions; protect the public health and welfare
134.2and the environment; and comply with applicable federal and state laws and regulations.
134.3The state agency, political subdivision, or special purpose district to which the property is
134.4transferred is not liable under this chapter solely as a result of acquiring the property or
134.5acting in accordance with the terms and conditions of transfer.
134.6(c) The proceeds of a sale or other transfer of property under this subdivision
134.7by the commissioner or by the commissioner of administration shall be deposited in
134.8the petroleum tank fund or other appropriate fund. Any share of the proceeds that the
134.9agency is required by federal law or regulation to reimburse to the federal government is
134.10appropriated from the fund to the agency for the purpose. Section 16B.287, subdivision 1,
134.11does not apply to real property that is sold by the commissioner of administration and that
134.12was acquired under subdivision 4, clause (11).

134.13    Sec. 93. Minnesota Statutes 2012, section 115D.10, is amended to read:
134.14115D.10 TOXIC POLLUTION PREVENTION EVALUATION REPORT.
134.15The commissioner, in cooperation with the commission, shall report to
134.16the Environment and Natural Resources Committees of the senate and house of
134.17representatives, the Finance Division of the senate Committee on Environment and
134.18Natural Resources, and the house of representatives Committee on Environment and
134.19Natural Resources Finance on progress being made in achieving the objectives of sections
134.20115D.01 to 115D.12. The report must be ~~submitted by February 1 of each even-numbered~~
134.21~~year~~ done in conjunction with the report required under section 115A.121.

134.22    Sec. 94. Minnesota Statutes 2012, section 116.48, subdivision 6, is amended to read:
134.23    Subd. 6. Affidavit. (a) Before transferring ownership of property that the owner
134.24knows contains an underground or aboveground storage tank or contained an underground
134.25or aboveground storage tank that had a release for which no corrective action was taken or
134.26if required by the agency as a condition of a corrective action under chapter 115C, the
134.27owner shall record with the county recorder or registrar of titles of the county in which the
134.28property is located an affidavit containing:
134.29(1) a legal description of the property where the tank is located;
134.30(2) a description of the tank, of the location of the tank, and of any known release
134.31from the tank of a regulated substance to the full extent known or reasonably ascertainable;
134.32(3) a description of any restrictions currently in force on the use of the property
134.33resulting from any release; and
134.34(4) the name of the owner.
135.1(b) The county recorder shall record the affidavits in a manner that will insure
135.2their disclosure in the ordinary course of a title search of the subject property. Before
135.3transferring ownership of property that the owner knows contains an underground or
135.4aboveground storage tank, the owner shall deliver to the purchaser a copy of the affidavit
135.5and any additional information necessary to make the facts in the affidavit accurate as of
135.6the date of transfer of ownership.
135.7(c) Failure to record an affidavit as provided in this subdivision does not affect or
135.8prevent any transfer of ownership of the property.

135.9    Sec. 95. Minnesota Statutes 2012, section 116C.03, subdivision 2, is amended to read:
135.10    Subd. 2. Membership. The members of the board are the ~~director of the Office of~~
135.11~~Strategic and Long-Range Planning~~ commissioner of administration, the commissioner
135.12of commerce, the commissioner of the Pollution Control Agency, the commissioner
135.13of natural resources, the commissioner of agriculture, the commissioner of health,
135.14the commissioner of employment and economic development, the commissioner of
135.15transportation, the chair of the Board of Water and Soil Resources, and a representative of
135.16the governor's office designated by the governor. The governor shall appoint five members
135.17from the general public to the board, subject to the advice and consent of the senate.
135.18At least two of the five public members must have knowledge of and be conversant in
135.19water management issues in the state. Notwithstanding the provisions of section 15.06,
135.20subdivision 6 , members of the board may not delegate their powers and responsibilities as
135.21board members to any other person.

135.22    Sec. 96. Minnesota Statutes 2012, section 116C.03, subdivision 4, is amended to read:
135.23    Subd. 4. Support. Staff and consultant support for board activities shall be provided
135.24by the ~~Office of Strategic and Long-Range Planning~~ Pollution Control Agency. This
135.25support shall be provided based upon an annual budget and work program developed by
135.26the board and certified to the commissioner by the chair of the board. The board shall
135.27have the authority to request and require staff support from all other agencies of state
135.28government as needed for the execution of the responsibilities of the board.

135.29    Sec. 97. Minnesota Statutes 2012, section 116C.03, subdivision 5, is amended to read:
135.30    Subd. 5. Administration. The board shall contract with the ~~Office of Strategic and~~
135.31~~Long-Range Planning~~ Pollution Control Agency for administrative services necessary to
135.32the board's activities. The services shall include personnel, budget, payroll and contract
135.33administration.

136.1    Sec. 98. [116C.99] SILICA SAND MINING MODEL STANDARDS AND
136.2CRITERIA.
136.3    Subdivision 1. Definitions. The definitions in this subdivision apply to this section.
136.4(a) "Local unit of government" means a county, statutory or home rule charter city,
136.5or town.
136.6(b) "Mining" means excavating and mining silica sand by any process, including
136.7digging, excavating, mining, drilling, blasting, tunneling, dredging, stripping, or by shaft.
136.8(c) "Processing" means washing, cleaning, screening, crushing, filtering, sorting,
136.9processing, stockpiling, and storing silica sand, either at the mining site or at any other site.
136.10(d) "Silica sand" means well-rounded, sand-sized grains of quartz (silicon dioxide),
136.11with very little impurities in terms of other minerals. Specifically, the silica sand for the
136.12purposes of this section is commercially valuable for use in the hydraulic fracturing of
136.13shale to obtain oil and natural gas. Silica sand does not include common rock, stone,
136.14aggregate, gravel, sand with a low quartz level, or silica compounds recovered as a
136.15by-product of metallic mining.
136.16(e) "Silica sand project" means the excavation and mining and processing of silica
136.17sand; the washing, cleaning, screening, crushing, filtering, drying, sorting, stockpiling,
136.18and storing of silica sand, either at the mining site or at any other site; the hauling and
136.19transporting of silica sand; or a facility for transporting silica sand to destinations by rail,
136.20barge, truck, or other means of transportation.
136.21(f) "Temporary storage" means the storage of stock piles of silica sand that have
136.22been transported and await further transport.
136.23(g) "Transporting" means hauling and transporting silica sand, by any carrier:
136.24(1) from the mining site to a processing or transfer site; or
136.25(2) from a processing or storage site to a rail, barge, or transfer site for transporting
136.26to destinations.
136.27    Subd. 2. Standards and criteria. (a) By October 1, 2013, the Environmental
136.28Quality Board, in consultation with local units of government, shall develop model
136.29standards and criteria for mining, processing, and transporting silica sand. These standards
136.30and criteria may be used by local units of government in developing local ordinances.
136.31The standards and criteria must include:
136.32(1) recommendations for setbacks or buffers for mining operation and processing,
136.33including:
136.34(i) any residence or residential zoning district boundary;
136.35(ii) any property line or right-of-way line of any existing or proposed street or
136.36highway;
137.1(iii) ordinary high water levels of public waters;
137.2(iv) bluffs;
137.3(v) designated trout streams, Class 2A water as designated in the rules of the
137.4Pollution Control Agency, or any perennially flowing tributary of a designated trout
137.5stream or Class 2A water;
137.6(vi) calcareous fens;
137.7(vii) wellhead protection areas as defined in section 103I.005;
137.8(viii) critical natural habitat acquired by the commissioner of natural resources
137.9under section 84.944; and
137.10(ix) a natural resource easement paid wholly or in part by public funds;
137.11(2) standards for hours of operation;
137.12(3) groundwater and surface water quality and quantity monitoring and mitigation
137.13plan requirements, including:
137.14(i) applicable groundwater and surface water appropriation permit requirements;
137.15(ii) well sealing requirements;
137.16(iii) annual submission of monitoring well data; and
137.17(iv) storm water runoff rate limits not to exceed two-, ten-, and 100-year storm events;
137.18(4) air monitoring and data submission requirements;
137.19(5) dust control requirements;
137.20(6) noise testing and mitigation plan requirements;
137.21(7) blast monitoring plan requirements;
137.22(8) lighting requirements;
137.23(9) inspection requirements;
137.24(10) containment requirements for silica sand in temporary storage to protect air
137.25and water quality;
137.26(11) containment requirements for chemicals used in processing;
137.27(12) financial assurance requirements;
137.28(13) road and bridge impacts and requirements; and
137.29(14) reclamation plan requirements as required under the rules adopted by the
137.30commissioner of natural resources.
137.31    Subd. 3. Silica sand technical assistance team. By October 1, 2013, the
137.32Environmental Quality Board shall assemble a silica sand technical assistance team
137.33to provide local units of government, at their request, with assistance with ordinance
137.34development, zoning, environmental review and permitting, monitoring, or other issues
137.35arising from silica sand mining and processing operations. The technical assistance team
137.36shall be comprised of up to seven members, and shall be chosen from the following
138.1entities: the Department of Natural Resources, the Pollution Control Agency, the Board of
138.2Water and Soil Resources, the Department of Health, the Department of Transportation,
138.3the University of Minnesota, and the Minnesota State Colleges and Universities. A
138.4majority of the members must be from a state agency and have expertise in one or more of
138.5the following areas: silica sand mining, hydrology, air quality, water quality, land use, or
138.6other areas related to silica sand mining.
138.7    Subd. 4. Consideration of technical assistance team recommendations. (a) When
138.8the technical assistance team, at the request of the local unit of government, assembles
138.9findings or makes a recommendation related to a proposed silica sand project for the
138.10protection of human health and the environment, a local government unit must consider
138.11the findings or recommendations of the technical assistance team in its approval or denial
138.12of a silica sand project. If the local government unit does not agree with the technical
138.13assistance team's findings and recommendations, the detailed reasons for the disagreement
138.14must be part of the local government unit's record of decision.
138.15(b) Silica sand project proposers must cooperate in providing local government unit
138.16staff, and members of the technical assistance team with information regarding the project.
138.17EFFECTIVE DATE.This section is effective the day following final enactment.

138.18    Sec. 99. [116C.991] TECHNICAL ASSISTANCE, ORDINANCE, AND PERMIT
138.19LIBRARY.
138.20By October 1, 2013, the Environmental Quality Board, in consultation with local
138.21units of government, shall create and maintain a library on local government ordinances
138.22and local government permits that have been approved for regulation of silica sand
138.23projects for reference by local governments.

138.24    Sec. 100. Minnesota Statutes 2012, section 116D.04, is amended by adding a
138.25subdivision to read:
138.26    Subd. 16. Groundwater; environmental assessment worksheets. When an
138.27environmental assessment worksheet is required for a proposed action that has the
138.28potential to require a groundwater appropriation permit from the commissioner of natural
138.29resources, the board shall require that the environmental assessment worksheet include an
138.30assessment of the water resources available for appropriation.

138.31    Sec. 101. Minnesota Statutes 2012, section 168.1296, subdivision 1, is amended to read:
138.32    Subdivision 1. General requirements and procedures. (a) The commissioner shall
138.33issue critical habitat plates to an applicant who:
139.1(1) is a registered owner of a passenger automobile as defined in section 168.002,
139.2subdivision 24, or recreational vehicle as defined in section 168.002, subdivision 27;
139.3(2) pays a fee of $10 to cover the costs of handling and manufacturing the plates;
139.4(3) pays the registration tax required under section 168.013;
139.5(4) pays the fees required under this chapter;
139.6(5) contributes a minimum of ~~$30~~ $40 annually to the Minnesota critical habitat
139.7private sector matching account established in section 84.943; and
139.8(6) complies with this chapter and rules governing registration of motor vehicles
139.9and licensing of drivers.
139.10(b) The critical habitat plate application must indicate that the annual contribution
139.11specified under paragraph (a), clause (5), is a minimum contribution to receive the plate
139.12and that the applicant may make an additional contribution to the account.
139.13(c) Owners of recreational vehicles under paragraph (a), clause (1), are eligible
139.14only for special critical habitat license plates for which the designs are selected under
139.15subdivision 2, on or after January 1, 2006.
139.16(d) Special critical habitat license plates, the designs for which are selected under
139.17subdivision 2, on or after January 1, 2006, may be personalized according to section
139.18168.12, subdivision 2a .

139.19    Sec. 102. Minnesota Statutes 2012, section 473.846, is amended to read:
139.20473.846 ~~REPORTS~~ REPORT TO LEGISLATURE.
139.21The agency shall submit to the senate and house of representatives committees
139.22having jurisdiction over environment and natural resources ~~separate reports~~ a report
139.23 describing the activities for which money for landfill abatement has been spent under
139.24~~sections~~ section 473.844 ~~and~~ ~~473.845~~. The report ~~for section~~ ~~473.844~~ ~~expenditures~~ shall be
139.25included in the report required by section 115A.411, and shall include recommendations
139.26on the future management and use of the metropolitan landfill abatement account. By
139.27~~December 31 of each year, the commissioner shall submit the report for section~~ ~~473.845~~
139.28 ~~on contingency action trust fund activities.~~

139.29    Sec. 103. Laws 2012, chapter 249, section 11, is amended to read:
139.30    Sec. 11. COSTS OF SCHOOL TRUST LANDS DIRECTOR AND
139.31LEGISLATIVE PERMANENT SCHOOL FUND COMMISSION.
139.32(a) The costs of the school trust lands director, including the costs of hiring staff,
139.33and the Legislative Permanent School Fund Commission for fiscal years 2014 and 2015
139.34shall be from the ~~state forest development account under Minnesota Statutes, section~~
140.1~~16A.125, and from the~~ minerals management account under Minnesota Statutes, section
140.293.2236 , as appropriated by the legislature.
140.3(b) The school trust lands director and the Legislative Permanent School Fund
140.4Commission shall submit to the 2014 legislature a proposal to fund the operational costs
140.5of the Legislative Permanent School Fund Commission and school trust lands director
140.6and staff with a cost certification method using revenues generated by the permanent
140.7school fund lands.
140.8EFFECTIVE DATE.This section is effective July 1, 2013.

140.9    Sec. 104. WASTEWATER TREATMENT SYSTEMS; BENEFICIAL USE.
140.10The Pollution Control Agency shall apply the following criteria to wastewater
140.11treatment system projects:
140.12(1) thirty points shall be assigned if a project will result in an agency approved
140.13beneficial use of treated wastewater to reduce or replace an existing or proposed use of
140.14surface water or ground water, not including land discharge; and
140.15(2) thirty points shall be assigned if a project will result in the beneficial use of
140.16treated wastewater to reduce or replace an existing or proposed use of surface water or
140.17ground water, not including land discharge.
140.18EFFECTIVE DATE.This section is effective July 1, 2014.

140.19    Sec. 105. RULEMAKING; POSSESSION AND TRANSPORTATION OF
140.20WILDLIFE.
140.21The commissioner of natural resources may use the good cause exemption under
140.22Minnesota Statutes, section 14.388, subdivision 1, clause (3), to adopt rules to conform
140.23with the changes to Minnesota Statutes 2012, section 97A.401, subdivision 3 contained in
140.24this article, and Minnesota Statutes, section 14.386, does not apply except as provided
140.25under Minnesota Statutes, section 14.388.

140.26    Sec. 106. RULEMAKING; DISPLAY OF PADDLE BOARD LICENSE
140.27NUMBERS.
140.28(a) The commissioner of natural resources shall amend Minnesota Rules, parts
140.296110.0200, 6110.0300, and 6110.0400, to exempt paddle boards from the requirement to
140.30display license certificates and license numbers, in the same manner as other nonmotorized
140.31watercraft such as canoes and kayaks.
141.1(b) The commissioner may use the good cause exemption under Minnesota Statutes,
141.2section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
141.3Statutes, section 14.386, does not apply except as provided under Minnesota Statutes,
141.4section 14.388.

141.5    Sec. 107. RULEMAKING; INDUSTRIAL MINERALS AND NONFERROUS
141.6MINERAL LEASES.
141.7The commissioner of natural resources may use the good cause exemption under
141.8Minnesota Statutes, section 14.388, subdivision 1, clause (3), to amend Minnesota Rules,
141.9parts 6125.0100 to 6125.0700 and 6125.8000 to 6125.8700, to conform with the changes
141.10to Minnesota Statutes, section 93.25, subdivision 2 contained in this article. Minnesota
141.11Statutes, section 14.386, does not apply except as provided under Minnesota Statutes,
141.12section 14.388.

141.13    Sec. 108. RULEMAKING; PERMIT TO MINE.
141.14The commissioner of natural resources may use the good cause exemption under
141.15Minnesota Statutes, section 14.388, subdivision 1, clause (3), to amend Minnesota Rules,
141.16chapter 6130, to conform with the changes to Minnesota Statutes, section 93.46 contained
141.17in this article. Minnesota Statutes, section 14.386, does not apply except as provided
141.18under Minnesota Statutes, section 14.388.

141.19    Sec. 109. RULEMAKING; SILICA SAND.
141.20(a) The commissioner of the Pollution Control Agency shall adopt rules pertaining
141.21to the control of particulate emissions from silica sand mines. The commissioner shall
141.22consider and incorporate, as appropriate to the conditions of this state, Wisconsin
141.23Administrative Code NR 415, in effect as of January 1, 2012, pertaining to industrial
141.24sand mines.
141.25(b) The commissioner of natural resources shall adopt rules pertaining to the
141.26reclamation of silica sand mines. The commissioner shall consider and incorporate, as
141.27appropriate to the conditions of this state, Wisconsin Administrative Code NR 135, in
141.28effect as of January 1, 2012, pertaining to reclamation of industrial sand mines.
141.29(c) By January 1, 2014, the Department of Health shall adopt an air quality health
141.30advisory for silica sand.

141.31    Sec. 110. RULEMAKING; FUGITIVE EMISSIONS.
142.1(a) The commissioner of the Pollution Control Agency shall amend Minnesota
142.2Rules, part 7005.0100, subpart 35a, to read:
142.3""Potential emissions" or "potential to emit" means the maximum capacity while
142.4operating at the maximum hours of operation of an emissions unit, emission facility, or
142.5stationary source to emit a pollutant under its physical and operational design. Any physical
142.6or operational limitation on the capacity of the stationary source to emit a pollutant,
142.7including air pollution control equipment and restriction on hours of operation or on the
142.8type or amount of material combusted, stored, or processed, must be treated as part of its
142.9design if the limitation or the effect it would have on emissions is federally enforceable.
142.10Secondary emissions must not be counted in determining the potential to emit of
142.11an emissions unit, emission facility, or stationary source. Fugitive emissions shall not be
142.12counted when determining potential to emit, unless required under Minnesota Rules, part
142.137007.0200, subpart 2, item B, or applicable federal regulation."
142.14(b) The commissioner may use the good cause exemption under Minnesota Statutes,
142.15section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
142.16Statutes, section 14.386, does not apply, except as provided under Minnesota Statutes,
142.17section 14.388.

142.18    Sec. 111. REPEALER.
142.19Minnesota Statutes 2012, sections 90.163; 90.173; and 90.41, subdivision 2, and
142.20Minnesota Rules, parts 7021.0010, subparts 1, 2, 4, and 5; 7021.0020; 7021.0030;
142.217021.0040; 7021.0050, subpart 5; 9210.0300; 9210.0310; 9210.0320; 9210.0330;
142.229210.0340; 9210.0350; 9210.0360; 9210.0370; 9210.0380; and 9220.0530, subpart 6, are
142.23repealed.

142.24ARTICLE 5

142.25SANITARY DISTRICTS

142.26    Section 1. Minnesota Statutes 2012, section 275.066, is amended to read:
142.27275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
142.28    For the purposes of property taxation and property tax state aids, the term "special
142.29taxing districts" includes the following entities:
142.30    (1) watershed districts under chapter 103D;
142.31    (2) sanitary districts under sections ~~115.18~~ to ~~115.37~~ 442A.01 to 442A.29;
142.32    (3) regional sanitary sewer districts under sections 115.61 to 115.67;
142.33    (4) regional public library districts under section 134.201;
142.34    (5) park districts under chapter 398;
143.1    (6) regional railroad authorities under chapter 398A;
143.2    (7) hospital districts under sections 447.31 to 447.38;
143.3    (8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
143.4    (9) Duluth Transit Authority under sections 458A.21 to 458A.37;
143.5    (10) regional development commissions under sections 462.381 to 462.398;
143.6    (11) housing and redevelopment authorities under sections 469.001 to 469.047;
143.7    (12) port authorities under sections 469.048 to 469.068;
143.8    (13) economic development authorities under sections 469.090 to 469.1081;
143.9    (14) Metropolitan Council under sections 473.123 to 473.549;
143.10    (15) Metropolitan Airports Commission under sections 473.601 to 473.680;
143.11    (16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
143.12    (17) Morrison County Rural Development Financing Authority under Laws 1982,
143.13chapter 437, section 1;
143.14    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
143.15    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211,
143.16sections 1 to 6;
143.17    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article
143.185, section 39;
143.19    (21) Middle Mississippi River Watershed Management Organization under sections
143.20103B.211 and 103B.241;
143.21    (22) emergency medical services special taxing districts under section 144F.01;
143.22    (23) a county levying under the authority of section 103B.241, 103B.245, or
143.23103B.251 ;
143.24    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
143.25under Laws 2003, First Special Session chapter 21, article 4, section 12;
143.26    (25) an airport authority created under section 360.0426; and
143.27    (26) any other political subdivision of the state of Minnesota, excluding counties,
143.28school districts, cities, and towns, that has the power to adopt and certify a property tax
143.29levy to the county auditor, as determined by the commissioner of revenue.

143.30    Sec. 2. [442A.01] DEFINITIONS.
143.31    Subdivision 1. Applicability. For the purposes of this chapter, the terms defined
143.32in this section have the meanings given.
143.33    Subd. 2. Chief administrative law judge. "Chief administrative law judge" means
143.34the chief administrative law judge of the Office of Administrative Hearings or the delegate
143.35of the chief administrative law judge under section 14.48.
144.1    Subd. 3. District. "District" means a sanitary district created under this chapter or
144.2under Minnesota Statutes 2012, sections 115.18 to 115.37.
144.3    Subd. 4. Municipality. "Municipality" means a city, however organized.
144.4    Subd. 5. Property owner. "Property owner" means the fee owner of land, or the
144.5beneficial owner of land whose interest is primarily one of possession and enjoyment.
144.6Property owner includes, but is not limited to, vendees under a contract for deed and
144.7mortgagors. Any reference to a percentage of property owners means in number.
144.8    Subd. 6. Related governing body. "Related governing body" means the governing
144.9body of a related governmental subdivision and, in the case of an organized town, means
144.10the town board.
144.11    Subd. 7. Related governmental subdivision. "Related governmental subdivision"
144.12means a municipality or organized town wherein there is a territorial unit of a district or, in
144.13the case of an unorganized area, the county.
144.14    Subd. 8. Territorial unit. "Territorial unit" means all that part of a district situated
144.15within a single municipality, within a single organized town outside of a municipality, or,
144.16in the case of an unorganized area, within a single county.

144.17    Sec. 3. [442A.015] APPLICABILITY.
144.18All new sanitary district formations proposed and all sanitary districts previously
144.19formed under Minnesota Statutes 2012, sections 115.18 to 115.37, must comply with this
144.20chapter, including annexations to, detachments from, and resolutions of sanitary districts
144.21previously formed under Minnesota Statutes 2012, sections 115.18 to 115.37.

144.22    Sec. 4. [442A.02] SANITARY DISTRICTS; PROCEDURES AND AUTHORITY.
144.23    Subdivision 1. Duty of chief administrative law judge. The chief administrative
144.24law judge shall conduct proceedings, make determinations, and issue orders for the
144.25creation of a sanitary district formed under this chapter or the annexation, detachment,
144.26or dissolution of a sanitary district previously formed under Minnesota Statutes 2012,
144.27sections 115.18 to 115.37.
144.28    Subd. 2. Consolidation of proceedings. The chief administrative law judge may
144.29order the consolidation of separate proceedings in the interest of economy and expedience.
144.30    Subd. 3. Contracts, consultants. The chief administrative law judge may contract
144.31with regional, state, county, or local planning commissions and hire expert consultants to
144.32provide specialized information and assistance.
144.33    Subd. 4. Powers of conductor of proceedings. Any person conducting a
144.34proceeding under this chapter may administer oaths and affirmations; receive testimony
145.1of witnesses, and the production of papers, books, and documents; examine witnesses;
145.2and receive and report evidence. Upon the written request of a presiding administrative
145.3law judge or a party, the chief administrative law judge may issue a subpoena for the
145.4attendance of a witness or the production of books, papers, records, or other documents
145.5material to any proceeding under this chapter. The subpoena is enforceable through the
145.6district court in the district in which the subpoena is issued.
145.7    Subd. 5. Rulemaking authority. The chief administrative law judge may adopt
145.8rules that are reasonably necessary to carry out the duties and powers imposed upon the
145.9chief administrative law judge under this chapter. The chief administrative law judge may
145.10initially adopt rules according to section 14.386. Notwithstanding section 16A.1283, the
145.11chief administrative law judge may adopt rules establishing fees.
145.12    Subd. 6. Schedule of filing fees. The chief administrative law judge may prescribe
145.13by rule a schedule of filing fees for any petitions filed under this chapter.
145.14    Subd. 7. Request for hearing transcripts; costs. Any party may request the chief
145.15administrative law judge to cause a transcript of the hearing to be made. Any party
145.16requesting a copy of the transcript is responsible for its costs.
145.17    Subd. 8. Compelled meetings; report. (a) In any proceeding under this chapter,
145.18the chief administrative law judge or conductor of the proceeding may at any time in the
145.19process require representatives from any petitioner, property owner, or involved city, town,
145.20county, political subdivision, or other governmental entity to meet together to discuss
145.21resolution of issues raised by the petition or order that confers jurisdiction on the chief
145.22administrative law judge and other issues of mutual concern. The chief administrative
145.23law judge or conductor of the proceeding may determine which entities are required
145.24to participate in these discussions. The chief administrative law judge or conductor of
145.25the proceeding may require that the parties meet at least three times during a 60-day
145.26period. The parties shall designate a person to report to the chief administrative law
145.27judge or conductor of the proceeding on the results of the meetings immediately after the
145.28last meeting. The parties may be granted additional time at the discretion of the chief
145.29administrative law judge or conductor of the proceedings.
145.30(b) Any proposed resolution or settlement of contested issues that results in a
145.31sanitary district formation, annexation, detachment, or dissolution; places conditions on
145.32any future sanitary district formation, annexation, detachment, or dissolution; or results in
145.33the withdrawal of an objection to a pending proceeding or the withdrawal of a pending
145.34proceeding must be filed with the chief administrative law judge and is subject to the
145.35applicable procedures and statutory criteria of this chapter.
146.1    Subd. 9. Permanent official record. The chief administrative law judge shall
146.2provide information about sanitary district creations, annexations, detachments, and
146.3dissolutions to the Minnesota Pollution Control Agency. The Minnesota Pollution Control
146.4Agency is responsible for maintaining the official record, including all documentation
146.5related to the processes.
146.6    Subd. 10. Shared program costs and fee revenue. The chief administrative
146.7law judge and the Minnesota Pollution Control Agency shall agree on an amount to be
146.8transferred from the Minnesota Pollution Control Agency to the chief administrative law
146.9judge to pay for administration of this chapter, including publication and notification costs.
146.10Sanitary district fees collected by the chief administrative law judge shall be deposited in
146.11the environmental fund.
146.12EFFECTIVE DATE.Subdivision 5 is effective the day following final enactment.

146.13    Sec. 5. [442A.03] FILING OF MAPS IN SANITARY DISTRICT PROCEEDINGS.
146.14Any party initiating a sanitary district proceeding that includes platted land shall file
146.15with the chief administrative law judge maps which are necessary to support and identify
146.16the land description. The maps shall include copies of plats.

146.17    Sec. 6. [442A.04] SANITARY DISTRICT CREATION.
146.18    Subdivision 1. Sanitary district creation. (a) A sanitary district may be created
146.19under this chapter for any territory embracing an area or a group of two or more adjacent
146.20areas, whether contiguous or separate, but not situated entirely within the limits of a
146.21single municipality. The proposed sanitary district must promote the public health and
146.22welfare by providing an adequate and efficient system and means of collecting, conveying,
146.23pumping, treating, and disposing of domestic sewage and garbage and industrial wastes
146.24within the district. When the chief administrative law judge or the Minnesota Pollution
146.25Control Agency finds that there is need throughout the territory for the accomplishment
146.26of these purposes; that these purposes can be effectively accomplished on an equitable
146.27basis by a district if created; and that the creation and maintenance of a district will be
146.28administratively feasible and in furtherance of the public health, safety, and welfare, the
146.29chief administrative law judge shall make an order creating the sanitary district. A sanitary
146.30district is administratively feasible under this section if the district has the financial and
146.31managerial resources needed to deliver adequate and efficient sanitary sewer services
146.32within the proposed district.
146.33(b) Notwithstanding paragraph (a), no district shall be created within 25 miles of the
146.34boundary of any city of the first class without the approval of the governing body thereof
147.1and the approval of the governing body of each and every municipality in the proposed
147.2district by resolution filed with the chief administrative law judge.
147.3(c) If the chief administrative law judge and the Minnesota Pollution Control Agency
147.4disagree on the need to create a sanitary district, they must determine whether not allowing
147.5the sanitary district formation will have a detrimental effect on the environment. If it is
147.6determined that the sanitary district formation will prevent environmental harm, the sanitary
147.7district creation or connection to an existing wastewater treatment system must occur.
147.8    Subd. 2. Proceeding to create sanitary district. (a) A proceeding for the creation
147.9of a district may be initiated by a petition to the chief administrative law judge containing
147.10the following:
147.11(1) a request for creation of the proposed district;
147.12(2) the name proposed for the district, to include the words "sanitary district";
147.13(3) a legal description of the territory of the proposed district, including justification
147.14for inclusion or exclusion for all parcels;
147.15(4) addresses of every property owner within the proposed district boundaries as
147.16provided by the county auditor, with certification from the county auditor; two sets of
147.17address labels for said owners; and a list of e-mail addresses for said owners, if available;
147.18(5) a statement showing the existence in the territory of the conditions requisite for
147.19creation of a district as prescribed in subdivision 1;
147.20(6) a statement of the territorial units represented by and the qualifications of the
147.21respective signers; and
147.22(7) the post office address of each signer, given under the signer's signature.
147.23A petition may consist of separate writings of like effect, each signed by one or more
147.24qualified persons, and all such writings, when filed, shall be considered together as a
147.25single petition.
147.26(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
147.27proposed creation of the district. At the meeting, information must be provided, including
147.28a description of the district's proposed structure, bylaws, territory, ordinances, budget, and
147.29charges and a description of the territory of the proposed district, including justification
147.30for inclusion or exclusion for all parcels. Notice of the meeting must be published for two
147.31successive weeks in a qualified newspaper, as defined under chapter 331A, published
147.32within the territory of the proposed district or, if there is no qualified newspaper published
147.33within the territory, in a qualified newspaper of general circulation in the territory, and
147.34must be posted for two weeks in each territorial unit of the proposed district and on the
147.35Web site of the proposed district, if one exists. Notice of the meeting must be mailed or
147.36e-mailed at least three weeks prior to the meeting to all property tax billing addresses for
148.1all parcels included in the proposed district. The following must be submitted to the chief
148.2administrative law judge with the petition:
148.3(1) a record of the meeting, including copies of all information provided at the
148.4meeting;
148.5(2) a copy of the mailing list provided by the county auditor and used to notify
148.6property owners of the meeting;
148.7(3) a copy of the e-mail list used to notify property owners of the meeting;
148.8(4) the printer's affidavit of publication of public meeting notice;
148.9(5) an affidavit of posting the public meeting notice with information on dates and
148.10locations of posting; and
148.11(6) the minutes or other record of the public meeting documenting that the following
148.12topics were discussed: printer's affidavit of publication of each resolution, with a copy
148.13of the resolution from the newspaper attached; and the affidavit of resolution posting
148.14on the town or proposed district Web site.
148.15(c) Every petition must be signed as follows:
148.16(1) for each municipality wherein there is a territorial unit of the proposed district,
148.17by an authorized officer pursuant to a resolution of the municipal governing body;
148.18(2) for each organized town wherein there is a territorial unit of the proposed district,
148.19by an authorized officer pursuant to a resolution of the town board;
148.20(3) for each county wherein there is a territorial unit of the proposed district consisting
148.21of an unorganized area, by an authorized officer pursuant to a resolution of the county
148.22board or by at least 20 percent of the voters residing and owning land within the unit.
148.23(d) Each resolution must be published in the official newspaper of the governing
148.24body adopting it and becomes effective 40 days after publication, unless within said
148.25period there shall be filed with the governing body a petition signed by qualified electors
148.26of a territorial unit of the proposed district, equal in number to five percent of the number
148.27of electors voting at the last preceding election of the governing body, requesting a
148.28referendum on the resolution, in which case the resolution may not become effective until
148.29approved by a majority of the qualified electors voting at a regular election or special
148.30election that the governing body may call. The notice of an election and the ballot to be
148.31used must contain the text of the resolution followed by the question: "Shall the above
148.32resolution be approved?"
148.33(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
148.34the signer's landowner status as shown by the county auditor's tax assessment records,
148.35certified by the auditor, shall be attached to or endorsed upon the petition.
149.1(f) At any time before publication of the public notice required in subdivision 3,
149.2additional signatures may be added to the petition or amendments of the petition may
149.3be made to correct or remedy any error or defect in signature or otherwise except a
149.4material error or defect in the description of the territory of the proposed district. If the
149.5qualifications of any signer of a petition are challenged, the chief administrative law judge
149.6shall determine the challenge forthwith on the allegations of the petition, the county
149.7auditor's certificate of land ownership, and such other evidence as may be received.
149.8    Subd. 3. Notice of intent to create sanitary district. (a) Upon receipt of a petition
149.9and the record of the public meeting required under subdivision 2, the chief administrative
149.10law judge shall publish a notice of intent to create the proposed sanitary district in the State
149.11Register and mail or e-mail information of that publication to each property owner in the
149.12affected territory at the owner's address as given by the county auditor. The information
149.13must state the date that the notice will appear in the State Register and give the Web site
149.14location for the State Register. The notice must:
149.15(1) describe the petition for creation of the district;
149.16(2) describe the territory affected by the petition;
149.17(3) allow 30 days for submission of written comments on the petition;
149.18(4) state that a person who objects to the petition may submit a written request for
149.19hearing to the chief administrative law judge within 30 days of the publication of the
149.20notice in the State Register; and
149.21(5) state that if a timely request for hearing is not received, the chief administrative
149.22law judge may make a decision on the petition.
149.23(b) If 50 or more individual timely requests for hearing are received, the chief
149.24administrative law judge must hold a hearing on the petition according to the contested
149.25case provisions of chapter 14. The sanitary district proposers are responsible for paying all
149.26costs involved in publicizing and holding a hearing on the petition.
149.27    Subd. 4. Hearing time, place. If a hearing is required pursuant to subdivision 3, the
149.28chief administrative law judge shall designate a time and place for a hearing according
149.29to section 442A.13.
149.30    Subd. 5. Relevant factors. (a) In arriving at a decision, the chief administrative law
149.31judge shall consider the following factors:
149.32(1) administrative feasibility under subdivision 1, paragraph (a);
149.33(2) public health, safety, and welfare impacts;
149.34(3) alternatives for managing the public health impacts;
149.35(4) equities of the petition proposal;
149.36(5) contours of the petition proposal; and
150.1(6) public notification of and interaction on the petition proposal.
150.2(b) Based on the factors in paragraph (a), the chief administrative law judge may
150.3order the sanitary district creation on finding that:
150.4(1) the proposed district is administratively feasible;
150.5(2) the proposed district provides a long-term, equitable solution to pollution
150.6problems affecting public health, safety, and welfare;
150.7(3) property owners within the proposed district were provided notice of the
150.8proposed district and opportunity to comment on the petition proposal; and
150.9(4) the petition complied with the requirements of all applicable statutes and rules
150.10pertaining to sanitary district creation.
150.11(c) The chief administrative law judge may alter the boundaries of the proposed
150.12sanitary district by increasing or decreasing the area to be included or may exclude
150.13property that may be better served by another unit of government. The chief administrative
150.14law judge may also alter the boundaries of the proposed district so as to follow visible,
150.15clearly recognizable physical features for municipal boundaries.
150.16(d) The chief administrative law judge may deny sanitary district creation if the area,
150.17or a part thereof, would be better served by an alternative method.
150.18(e) In all cases, the chief administrative law judge shall set forth the factors that are
150.19the basis for the decision.
150.20    Subd. 6. Findings; order. After the public notice period or the public hearing, if
150.21required under subdivision 3, and based on the petition, any public comments received,
150.22and, if a hearing was held, the hearing record, the chief administrative law judge shall
150.23make findings of fact and conclusions determining whether the conditions requisite for the
150.24creation of a district exist in the territory described in the petition. If the chief administrative
150.25law judge finds that the conditions exist, the judge may make an order creating a district
150.26for the territory described in that petition under the name proposed in the petition or such
150.27other name, including the words "sanitary district," as the judge deems appropriate.
150.28    Subd. 7. Denial of petition. If the chief administrative law judge, after conclusion
150.29of the public notice period or holding a hearing, if required, determines that the creation of
150.30a district in the territory described in the petition is not warranted, the judge shall make
150.31an order denying the petition. The chief administrative law judge shall give notice of the
150.32denial by mail or e-mail to each signer of the petition. No petition for the creation of a
150.33district consisting of the same territory shall be entertained within a year after the date of
150.34an order under this subdivision. Nothing in this subdivision precludes action on a petition
150.35for the creation of a district embracing part of the territory with or without other territory.
151.1    Subd. 8. Notice of order creating sanitary district. The chief administrative law
151.2judge shall publish a notice in the State Register of the final order creating a sanitary
151.3district, referring to the date of the order and describing the territory of the district, and
151.4shall mail or e-mail information of the publication to each property owner in the affected
151.5territory at the owner's address as given by the county auditor. The information must state
151.6the date that the notice will appear in the State Register and give the Web site location
151.7for the State Register. The notice must:
151.8(1) describe the petition for creation of the district;
151.9(2) describe the territory affected by the petition; and
151.10(3) state that a certified copy of the order shall be delivered to the secretary of state
151.11for filing ten days after public notice of the order in the State Register.
151.12    Subd. 9. Filing. Ten days after public notice of the order in the State Register, the
151.13chief administrative law judge shall deliver a certified copy of the order to the secretary
151.14of state for filing. Thereupon, the creation of the district is deemed complete, and it
151.15shall be conclusively presumed that all requirements of law relating thereto have been
151.16complied with. The chief administrative law judge shall also transmit a certified copy of
151.17the order for filing to the county auditor of each county and the clerk or recorder of each
151.18municipality and organized town wherein any part of the territory of the district is situated
151.19and to the secretary of the district board when elected.

151.20    Sec. 7. [442A.05] SANITARY DISTRICT ANNEXATION.
151.21    Subdivision 1. Annexation. (a) A sanitary district annexation may occur under
151.22this chapter for any area adjacent to an existing district upon a petition to the chief
151.23administrative law judge stating the grounds therefor as provided in this section.
151.24(b) The proposed annexation area must embrace an area or a group of two or more
151.25adjacent areas, whether contiguous or separate, but not situated entirely within the limits
151.26of a single municipality. The proposed annexation must promote public health and
151.27welfare by providing an adequate and efficient system and means of collecting, conveying,
151.28pumping, treating, and disposing of domestic sewage and garbage and industrial wastes
151.29within the district. When the chief administrative law judge or the Minnesota Pollution
151.30Control Agency finds that there is need throughout the territory for the accomplishment of
151.31these purposes, that these purposes can be effectively accomplished on an equitable basis
151.32by annexation to a district, and that the creation and maintenance of such annexation will
151.33be administratively feasible and in furtherance of the public health, safety, and welfare,
151.34the chief administrative law judge shall make an order for sanitary district annexation.
151.35A sanitary district is administratively feasible under this section if the district has the
152.1financial and managerial resources needed to deliver adequate and efficient sanitary sewer
152.2services within the proposed district.
152.3(c) Notwithstanding paragraph (b), no annexation to a district shall be approved
152.4within 25 miles of the boundary of any city of the first class without the approval
152.5of the governing body thereof and the approval of the governing body of each and
152.6every municipality in the proposed annexation area by resolution filed with the chief
152.7administrative law judge.
152.8(d) If the chief administrative law judge and the Minnesota Pollution Control Agency
152.9disagree on the need for a sanitary district annexation, they must determine whether not
152.10allowing the sanitary district annexation will have a detrimental effect on the environment.
152.11If it is determined that the sanitary district annexation will prevent environmental harm,
152.12the sanitary district annexation or connection to an existing wastewater treatment system
152.13must occur.
152.14    Subd. 2. Proceeding for annexation. (a) A proceeding for sanitary district
152.15annexation may be initiated by a petition to the chief administrative law judge containing
152.16the following:
152.17(1) a request for proposed annexation to a sanitary district;
152.18(2) a legal description of the territory of the proposed annexation, including
152.19justification for inclusion or exclusion for all parcels;
152.20(3) addresses of every property owner within the existing sanitary district and
152.21proposed annexation area boundaries as provided by the county auditor, with certification
152.22from the county auditor; two sets of address labels for said owners; and a list of e-mail
152.23addresses for said owners, if available;
152.24(4) a statement showing the existence in such territory of the conditions requisite
152.25for annexation to a district as prescribed in subdivision 1;
152.26(5) a statement of the territorial units represented by and qualifications of the
152.27respective signers; and
152.28(6) the post office address of each signer, given under the signer's signature.
152.29A petition may consist of separate writings of like effect, each signed by one or more
152.30qualified persons, and all such writings, when filed, shall be considered together as a
152.31single petition.
152.32(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
152.33proposed annexation to a sanitary district. At the meeting, information must be provided,
152.34including a description of the existing sanitary district's structure, bylaws, territory,
152.35ordinances, budget, and charges; a description of the existing sanitary district's territory;
152.36and a description of the territory of the proposed annexation area, including justification
153.1for inclusion or exclusion for all parcels for the annexation area. Notice of the meeting
153.2must be published for two successive weeks in a qualified newspaper, as defined under
153.3chapter 331A, published within the territories of the existing sanitary district and proposed
153.4annexation area or, if there is no qualified newspaper published within those territories, in
153.5a qualified newspaper of general circulation in the territories, and must be posted for two
153.6weeks in each territorial unit of the existing sanitary district and proposed annexation area
153.7and on the Web site of the existing sanitary district, if one exists. Notice of the meeting
153.8must be mailed or e-mailed at least three weeks prior to the meeting to all property tax
153.9billing addresses for all parcels included in the existing sanitary district and proposed
153.10annexation area. The following must be submitted to the chief administrative law judge
153.11with the petition:
153.12(1) a record of the meeting, including copies of all information provided at the
153.13meeting;
153.14(2) a copy of the mailing list provided by the county auditor and used to notify
153.15property owners of the meeting;
153.16(3) a copy of the e-mail list used to notify property owners of the meeting;
153.17(4) the printer's affidavit of publication of the public meeting notice;
153.18(5) an affidavit of posting the public meeting notice with information on dates and
153.19locations of posting; and
153.20(6) the minutes or other record of the public meeting documenting that the following
153.21topics were discussed: printer's affidavit of publication of each resolution, with copy
153.22of resolution from newspaper attached; and affidavit of resolution posting on town or
153.23existing sanitary district Web site.
153.24(c) Every petition must be signed as follows:
153.25(1) by an authorized officer of the existing sanitary district pursuant to a resolution
153.26of the board;
153.27(2) for each municipality wherein there is a territorial unit of the proposed annexation
153.28area, by an authorized officer pursuant to a resolution of the municipal governing body;
153.29(3) for each organized town wherein there is a territorial unit of the proposed
153.30annexation area, by an authorized officer pursuant to a resolution of the town board; and
153.31(4) for each county wherein there is a territorial unit of the proposed annexation area
153.32consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
153.33county board or by at least 20 percent of the voters residing and owning land within the unit.
153.34(d) Each resolution must be published in the official newspaper of the governing
153.35body adopting it and becomes effective 40 days after publication, unless within said
153.36period there shall be filed with the governing body a petition signed by qualified electors
154.1of a territorial unit of the proposed annexation area, equal in number to five percent of the
154.2number of electors voting at the last preceding election of the governing body, requesting
154.3a referendum on the resolution, in which case the resolution may not become effective
154.4until approved by a majority of the qualified electors voting at a regular election or special
154.5election that the governing body may call. The notice of an election and the ballot to be
154.6used must contain the text of the resolution followed by the question: "Shall the above
154.7resolution be approved?"
154.8(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
154.9the signer's landowner status as shown by the county auditor's tax assessment records,
154.10certified by the auditor, shall be attached to or endorsed upon the petition.
154.11(f) At any time before publication of the public notice required in subdivision 4,
154.12additional signatures may be added to the petition or amendments of the petition may be
154.13made to correct or remedy any error or defect in signature or otherwise except a material
154.14error or defect in the description of the territory of the proposed annexation area. If the
154.15qualifications of any signer of a petition are challenged, the chief administrative law judge
154.16shall determine the challenge forthwith on the allegations of the petition, the county
154.17auditor's certificate of land ownership, and such other evidence as may be received.
154.18    Subd. 3. Joint petition. Different areas may be annexed to a district in a single
154.19proceeding upon a joint petition therefor and upon compliance with the provisions of
154.20subdivisions 1 and 2 with respect to the area affected so far as applicable.
154.21    Subd. 4. Notice of intent for sanitary district annexation. (a) Upon receipt
154.22of a petition and the record of public meeting required under subdivision 2, the chief
154.23administrative law judge shall publish a notice of intent for sanitary district annexation
154.24in the State Register and mail or e-mail information of the publication to each property
154.25owner in the affected territory at the owner's address as given by the county auditor. The
154.26information must state the date that the notice will appear in the State Register and give
154.27the Web site location for the State Register. The notice must:
154.28(1) describe the petition for sanitary district annexation;
154.29(2) describe the territory affected by the petition;
154.30(3) allow 30 days for submission of written comments on the petition;
154.31(4) state that a person who objects to the petition may submit a written request for
154.32hearing to the chief administrative law judge within 30 days of the publication of the
154.33notice in the State Register; and
154.34(5) state that if a timely request for hearing is not received, the chief administrative
154.35law judge may make a decision on the petition.
155.1(b) If 50 or more individual timely requests for hearing are received, the chief
155.2administrative law judge must hold a hearing on the petition according to the contested case
155.3provisions of chapter 14. The sanitary district or annexation area proposers are responsible
155.4for paying all costs involved in publicizing and holding a hearing on the petition.
155.5    Subd. 5. Hearing time, place. If a hearing is required under subdivision 4, the
155.6chief administrative law judge shall designate a time and place for a hearing according
155.7to section 442A.13.
155.8    Subd. 6. Relevant factors. (a) In arriving at a decision, the chief administrative law
155.9judge shall consider the following factors:
155.10(1) administrative feasibility under subdivision 1, paragraph (a);
155.11(2) public health, safety, and welfare impacts;
155.12(3) alternatives for managing the public health impacts;
155.13(4) equities of the petition proposal;
155.14(5) contours of the petition proposal; and
155.15(6) public notification of and interaction on the petition proposal.
155.16(b) Based upon these factors, the chief administrative law judge may order the
155.17annexation to the sanitary district on finding that:
155.18(1) the sanitary district is knowledgeable and experienced in delivering sanitary sewer
155.19services to ratepayers and has provided quality service in a fair and cost-effective manner;
155.20(2) the proposed annexation provides a long-term, equitable solution to pollution
155.21problems affecting public health, safety, and welfare;
155.22(3) property owners within the existing sanitary district and proposed annexation
155.23area were provided notice of the proposed district and opportunity to comment on the
155.24petition proposal; and
155.25(4) the petition complied with the requirements of all applicable statutes and rules
155.26pertaining to sanitary district annexation.
155.27(c) The chief administrative law judge may alter the boundaries of the proposed
155.28annexation area by increasing or decreasing the area to be included or may exclude
155.29property that may be better served by another unit of government. The chief administrative
155.30law judge may also alter the boundaries of the proposed annexation area so as to follow
155.31visible, clearly recognizable physical features for municipal boundaries.
155.32(d) The chief administrative law judge may deny sanitary district annexation if the
155.33area, or a part thereof, would be better served by an alternative method.
155.34(e) In all cases, the chief administrative law judge shall set forth the factors that are
155.35the basis for the decision.
156.1    Subd. 7. Findings; order. (a) After the public notice period or the public hearing, if
156.2required under subdivision 4, and based on the petition, any public comments received,
156.3and, if a hearing was held, the hearing record, the chief administrative law judge shall
156.4make findings of fact and conclusions determining whether the conditions requisite for
156.5the sanitary district annexation exist in the territory described in the petition. If the chief
156.6administrative law judge finds that conditions exist, the judge may make an order for
156.7sanitary district annexation for the territory described in the petition.
156.8(b) All taxable property within the annexed area shall be subject to taxation for
156.9any existing bonded indebtedness or other indebtedness of the district for the cost of
156.10acquisition, construction, or improvement of any disposal system or other works or
156.11facilities beneficial to the annexed area to such extent as the chief administrative law judge
156.12may determine to be just and equitable, to be specified in the order for annexation. The
156.13proper officers shall levy further taxes on such property accordingly.
156.14    Subd. 8. Denial of petition. If the chief administrative law judge, after conclusion
156.15of the public notice period or holding a hearing, if required, determines that the sanitary
156.16district annexation in the territory described in the petition is not warranted, the judge shall
156.17make an order denying the petition. The chief administrative law judge shall give notice
156.18of the denial by mail or e-mail to each signer of the petition. No petition for a sanitary
156.19district annexation consisting of the same territory shall be entertained within a year
156.20after the date of an order under this subdivision. Nothing in this subdivision precludes
156.21action on a petition for a sanitary district annexation embracing part of the territory with
156.22or without other territory.
156.23    Subd. 9. Notice of order for sanitary district annexation. The chief administrative
156.24law judge shall publish in the State Register a notice of the final order for sanitary district
156.25annexation, referring to the date of the order and describing the territory of the annexation
156.26area, and shall mail or e-mail information of the publication to each property owner in the
156.27affected territory at the owner's address as given by the county auditor. The information
156.28must state the date that the notice will appear in the State Register and give the Web site
156.29location for the State Register. The notice must:
156.30(1) describe the petition for annexation to the district;
156.31(2) describe the territory affected by the petition; and
156.32(3) state that a certified copy of the order shall be delivered to the secretary of state
156.33for filing ten days after public notice of the order in the State Register.
156.34    Subd. 10. Filing. Ten days after public notice of the order in the State Register, the
156.35chief administrative law judge shall deliver a certified copy of the order to the secretary
156.36of state for filing. Thereupon, the sanitary district annexation is deemed complete, and it
157.1shall be conclusively presumed that all requirements of law relating thereto have been
157.2complied with. The chief administrative law judge shall also transmit a certified copy of
157.3the order for filing to the county auditor of each county and the clerk or recorder of each
157.4municipality and organized town wherein any part of the territory of the district, including
157.5the newly annexed area, is situated and to the secretary of the district board.

157.6    Sec. 8. [442A.06] SANITARY DISTRICT DETACHMENT.
157.7    Subdivision 1. Detachment. (a) A sanitary district detachment may occur under this
157.8chapter for any area within an existing district upon a petition to the chief administrative
157.9law judge stating the grounds therefor as provided in this section.
157.10(b) The proposed detachment must not have any negative environmental impact
157.11on the proposed detachment area.
157.12(c) If the chief administrative law judge and the Minnesota Pollution Control
157.13Agency disagree on the need for a sanitary district detachment, they must determine
157.14whether not allowing the sanitary district detachment will have a detrimental effect on
157.15the environment. If it is determined that the sanitary district detachment will cause
157.16environmental harm, the sanitary district detachment is not allowed unless the detached
157.17area is immediately connected to an existing wastewater treatment system.
157.18    Subd. 2. Proceeding for detachment. (a) A proceeding for sanitary district
157.19detachment may be initiated by a petition to the chief administrative law judge containing
157.20the following:
157.21(1) a request for proposed detachment from a sanitary district;
157.22(2) a statement that the requisite conditions for inclusion in a district no longer exist
157.23in the proposed detachment area;
157.24(3) a legal description of the territory of the proposed detachment, including
157.25justification for inclusion or exclusion for all parcels;
157.26(4) addresses of every property owner within the sanitary district and proposed
157.27detachment area boundaries as provided by the county auditor, with certification from the
157.28county auditor; two sets of address labels for said owners; and a list of e-mail addresses
157.29for said owners, if available;
157.30(5) a statement of the territorial units represented by and qualifications of the
157.31respective signers; and
157.32(6) the post office address of each signer, given under the signer's signature.
157.33A petition may consist of separate writings of like effect, each signed by one or more
157.34qualified persons, and all such writings, when filed, shall be considered together as a
157.35single petition.
158.1(b) Petitioners must conduct and pay for a public meeting to inform citizens of
158.2the proposed detachment from a sanitary district. At the meeting, information must be
158.3provided, including a description of the existing district's territory and a description of the
158.4territory of the proposed detachment area, including justification for inclusion or exclusion
158.5for all parcels for the detachment area. Notice of the meeting must be published for two
158.6successive weeks in a qualified newspaper, as defined under chapter 331A, published
158.7within the territories of the existing sanitary district and proposed detachment area or, if
158.8there is no qualified newspaper published within those territories, in a qualified newspaper
158.9of general circulation in the territories, and must be posted for two weeks in each territorial
158.10unit of the existing sanitary district and proposed detachment area and on the Web site
158.11of the existing sanitary district, if one exists. Notice of the meeting must be mailed or
158.12e-mailed at least three weeks prior to the meeting to all property tax billing addresses for
158.13all parcels included in the sanitary district. The following must be submitted to the chief
158.14administrative law judge with the petition:
158.15(1) a record of the meeting, including copies of all information provided at the
158.16meeting;
158.17(2) a copy of the mailing list provided by the county auditor and used to notify
158.18property owners of the meeting;
158.19(3) a copy of the e-mail list used to notify property owners of the meeting;
158.20(4) the printer's affidavit of publication of public meeting notice;
158.21(5) an affidavit of posting the public meeting notice with information on dates and
158.22locations of posting; and
158.23(6) minutes or other record of the public meeting documenting that the following
158.24topics were discussed: printer's affidavit of publication of each resolution, with copy
158.25of resolution from newspaper attached; and affidavit of resolution posting on town or
158.26existing sanitary district Web site.
158.27(c) Every petition must be signed as follows:
158.28(1) by an authorized officer of the existing sanitary district pursuant to a resolution
158.29of the board;
158.30(2) for each municipality wherein there is a territorial unit of the proposed detachment
158.31area, by an authorized officer pursuant to a resolution of the municipal governing body;
158.32(3) for each organized town wherein there is a territorial unit of the proposed
158.33detachment area, by an authorized officer pursuant to a resolution of the town board; and
158.34(4) for each county wherein there is a territorial unit of the proposed detachment area
158.35consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
158.36county board or by at least 20 percent of the voters residing and owning land within the unit.
159.1(d) Each resolution must be published in the official newspaper of the governing
159.2body adopting it and becomes effective 40 days after publication, unless within said period
159.3there shall be filed with the governing body a petition signed by qualified electors of a
159.4territorial unit of the proposed detachment area, equal in number to five percent of the
159.5number of electors voting at the last preceding election of the governing body, requesting
159.6a referendum on the resolution, in which case the resolution may not become effective
159.7until approved by a majority of the qualified electors voting at a regular election or special
159.8election that the governing body may call. The notice of an election and the ballot to be
159.9used must contain the text of the resolution followed by the question: "Shall the above
159.10resolution be approved?"
159.11(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
159.12the signer's landowner status as shown by the county auditor's tax assessment records,
159.13certified by the auditor, shall be attached to or endorsed upon the petition.
159.14(f) At any time before publication of the public notice required in subdivision 4,
159.15additional signatures may be added to the petition or amendments of the petition may be
159.16made to correct or remedy any error or defect in signature or otherwise except a material
159.17error or defect in the description of the territory of the proposed detachment area. If the
159.18qualifications of any signer of a petition are challenged, the chief administrative law judge
159.19shall determine the challenge forthwith on the allegations of the petition, the county
159.20auditor's certificate of land ownership, and such other evidence as may be received.
159.21    Subd. 3. Joint petition. Different areas may be detached from a district in a single
159.22proceeding upon a joint petition therefor and upon compliance with the provisions of
159.23subdivisions 1 and 2 with respect to the area affected so far as applicable.
159.24    Subd. 4. Notice of intent for sanitary district detachment. (a) Upon receipt
159.25of a petition and record of public meeting required under subdivision 2, the chief
159.26administrative law judge shall publish a notice of intent for sanitary district detachment
159.27in the State Register and mail or e-mail information of the publication to each property
159.28owner in the affected territory at the owner's address as given by the county auditor. The
159.29information must state the date that the notice will appear in the State Register and give
159.30the Web site location for the State Register. The notice must:
159.31(1) describe the petition for sanitary district detachment;
159.32(2) describe the territory affected by the petition;
159.33(3) allow 30 days for submission of written comments on the petition;
159.34(4) state that a person who objects to the petition may submit a written request for
159.35hearing to the chief administrative law judge within 30 days of the publication of the
159.36notice in the State Register; and
160.1(5) state that if a timely request for hearing is not received, the chief administrative
160.2law judge may make a decision on the petition.
160.3(b) If 50 or more individual timely requests for hearing are received, the chief
160.4administrative law judge must hold a hearing on the petition according to the contested case
160.5provisions of chapter 14. The sanitary district or detachment area proposers are responsible
160.6for paying all costs involved in publicizing and holding a hearing on the petition.
160.7    Subd. 5. Hearing time, place. If a hearing is required under subdivision 4, the
160.8chief administrative law judge shall designate a time and place for a hearing according
160.9to section 442A.13.
160.10    Subd. 6. Relevant factors. (a) In arriving at a decision, the chief administrative law
160.11judge shall consider the following factors:
160.12(1) public health, safety, and welfare impacts for the proposed detachment area;
160.13(2) alternatives for managing the public health impacts for the proposed detachment
160.14area;
160.15(3) equities of the petition proposal;
160.16(4) contours of the petition proposal; and
160.17(5) public notification of and interaction on the petition proposal.
160.18(b) Based upon these factors, the chief administrative law judge may order the
160.19detachment from the sanitary district on finding that:
160.20(1) the proposed detachment area has adequate alternatives for managing public
160.21health impacts due to the detachment;
160.22(2) the proposed detachment area is not necessary for the district to provide a
160.23long-term, equitable solution to pollution problems affecting public health, safety, and
160.24welfare;
160.25(3) property owners within the existing sanitary district and proposed detachment
160.26area were provided notice of the proposed detachment and opportunity to comment on
160.27the petition proposal; and
160.28(4) the petition complied with the requirements of all applicable statutes and rules
160.29pertaining to sanitary district detachment.
160.30(c) The chief administrative law judge may alter the boundaries of the proposed
160.31detachment area by increasing or decreasing the area to be included or may exclude
160.32property that may be better served by another unit of government. The chief administrative
160.33law judge may also alter the boundaries of the proposed detachment area so as to follow
160.34visible, clearly recognizable physical features for municipal boundaries.
160.35(d) The chief administrative law judge may deny sanitary district detachment if the
160.36area, or a part thereof, would be better served by an alternative method.
161.1(e) In all cases, the chief administrative law judge shall set forth the factors that are
161.2the basis for the decision.
161.3    Subd. 7. Findings; order. (a) After the public notice period or the public hearing, if
161.4required under subdivision 4, and based on the petition, any public comments received,
161.5and, if a hearing was held, the hearing record, the chief administrative law judge shall
161.6make findings of fact and conclusions determining whether the conditions requisite for
161.7the sanitary district detachment exist in the territory described in the petition. If the chief
161.8administrative law judge finds that conditions exist, the judge may make an order for
161.9sanitary district detachment for the territory described in the petition.
161.10(b) All taxable property within the detached area shall remain subject to taxation
161.11for any existing bonded indebtedness of the district to such extent as it would have been
161.12subject thereto if not detached and shall also remain subject to taxation for any other
161.13existing indebtedness of the district incurred for any purpose beneficial to such area to
161.14such extent as the chief administrative law judge may determine to be just and equitable,
161.15to be specified in the order for detachment. The proper officers shall levy further taxes on
161.16such property accordingly.
161.17    Subd. 8. Denial of petition. If the chief administrative law judge, after conclusion
161.18of the public notice period or holding a hearing, if required, determines that the sanitary
161.19district detachment in the territory described in the petition is not warranted, the judge
161.20shall make an order denying the petition. The chief administrative law judge shall give
161.21notice of the denial by mail or e-mail to each signer of the petition. No petition for a
161.22detachment from a district consisting of the same territory shall be entertained within a
161.23year after the date of an order under this subdivision. Nothing in this subdivision precludes
161.24action on a petition for a detachment from a district embracing part of the territory with
161.25or without other territory.
161.26    Subd. 9. Notice of order for sanitary district detachment. The chief
161.27administrative law judge shall publish in the State Register a notice of the final order
161.28for sanitary district detachment, referring to the date of the order and describing the
161.29territory of the detached area and shall mail or e-mail information of the publication
161.30to each property owner in the affected territory at the owner's address as given by the
161.31county auditor. The information must state the date that the notice will appear in the State
161.32Register and give the Web site location for the State Register. The notice must:
161.33(1) describe the petition for detachment from the district;
161.34(2) describe the territory affected by the petition; and
161.35(3) state that a certified copy of the order shall be delivered to the secretary of state
161.36for filing ten days after public notice of the order in the State Register.
162.1    Subd. 10. Filing. Ten days after public notice of the order in the State Register, the
162.2chief administrative law judge shall deliver a certified copy of the order to the secretary of
162.3state for filing. Thereupon, the sanitary district detachment is deemed complete, and it
162.4shall be conclusively presumed that all requirements of law relating thereto have been
162.5complied with. The chief administrative law judge shall also transmit a certified copy of
162.6the order for filing to the county auditor of each county and the clerk or recorder of each
162.7municipality and organized town wherein any part of the territory of the district, including
162.8the newly detached area, is situated and to the secretary of the district board.

162.9    Sec. 9. [442A.07] SANITARY DISTRICT DISSOLUTION.
162.10    Subdivision 1. Dissolution. (a) An existing sanitary district may be dissolved under
162.11this chapter upon a petition to the chief administrative law judge stating the grounds
162.12therefor as provided in this section.
162.13(b) The proposed dissolution must not have any negative environmental impact on
162.14the existing sanitary district area.
162.15(c) If the chief administrative law judge and the Minnesota Pollution Control
162.16Agency disagree on the need to dissolve a sanitary district, they must determine whether
162.17not dissolving the sanitary district will have a detrimental effect on the environment. If
162.18it is determined that the sanitary district dissolution will cause environmental harm, the
162.19sanitary district dissolution is not allowed unless the existing sanitary district area is
162.20immediately connected to an existing wastewater treatment system.
162.21    Subd. 2. Proceeding for dissolution. (a) A proceeding for sanitary district
162.22dissolution may be initiated by a petition to the chief administrative law judge containing
162.23the following:
162.24(1) a request for proposed sanitary district dissolution;
162.25(2) a statement that the requisite conditions for a sanitary district no longer exist
162.26in the district area;
162.27(3) a proposal for distribution of the remaining funds of the district, if any, among
162.28the related governmental subdivisions;
162.29(4) a legal description of the territory of the proposed dissolution;
162.30(5) addresses of every property owner within the sanitary district boundaries as
162.31provided by the county auditor, with certification from the county auditor; two sets of
162.32address labels for said owners; and a list of e-mail addresses for said owners, if available;
162.33(6) a statement of the territorial units represented by and the qualifications of the
162.34respective signers; and
162.35(7) the post office address of each signer, given under the signer's signature.
163.1A petition may consist of separate writings of like effect, each signed by one or more
163.2qualified persons, and all such writings, when filed, shall be considered together as a
163.3single petition.
163.4(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
163.5proposed dissolution of a sanitary district. At the meeting, information must be provided,
163.6including a description of the existing district's territory. Notice of the meeting must be
163.7published for two successive weeks in a qualified newspaper, as defined under chapter
163.8331A, published within the territory of the sanitary district or, if there is no qualified
163.9newspaper published within that territory, in a qualified newspaper of general circulation
163.10in the territory and must be posted for two weeks in each territorial unit of the sanitary
163.11district and on the Web site of the existing sanitary district, if one exists. Notice of the
163.12meeting must be mailed or e-mailed at least three weeks prior to the meeting to all property
163.13tax billing addresses for all parcels included in the sanitary district. The following must be
163.14submitted to the chief administrative law judge with the petition:
163.15(1) a record of the meeting, including copies of all information provided at the
163.16meeting;
163.17(2) a copy of the mailing list provided by the county auditor and used to notify
163.18property owners of the meeting;
163.19(3) a copy of the e-mail list used to notify property owners of the meeting;
163.20(4) the printer's affidavit of publication of public meeting notice;
163.21(5) an affidavit of posting the public meeting notice with information on dates and
163.22locations of posting; and
163.23(6) minutes or other record of the public meeting documenting that the following
163.24topics were discussed: printer's affidavit of publication of each resolution, with copy
163.25of resolution from newspaper attached; and affidavit of resolution posting on town or
163.26existing sanitary district Web site.
163.27(c) Every petition must be signed as follows:
163.28(1) by an authorized officer of the existing sanitary district pursuant to a resolution
163.29of the board;
163.30(2) for each municipality wherein there is a territorial unit of the existing sanitary
163.31district, by an authorized officer pursuant to a resolution of the municipal governing body;
163.32(3) for each organized town wherein there is a territorial unit of the existing sanitary
163.33district, by an authorized officer pursuant to a resolution of the town board; and
163.34(4) for each county wherein there is a territorial unit of the existing sanitary district
163.35consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
163.36county board or by at least 20 percent of the voters residing and owning land within the unit.
164.1(d) Each resolution must be published in the official newspaper of the governing body
164.2adopting it and becomes effective 40 days after publication, unless within said period there
164.3shall be filed with the governing body a petition signed by qualified electors of a territorial
164.4unit of the district, equal in number to five percent of the number of electors voting at the
164.5last preceding election of the governing body, requesting a referendum on the resolution,
164.6in which case the resolution may not become effective until approved by a majority of the
164.7qualified electors voting at a regular election or special election that the governing body
164.8may call. The notice of an election and the ballot to be used must contain the text of the
164.9resolution followed by the question: "Shall the above resolution be approved?"
164.10(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
164.11the signer's landowner status as shown by the county auditor's tax assessment records,
164.12certified by the auditor, shall be attached to or endorsed upon the petition.
164.13(f) At any time before publication of the public notice required in subdivision 3,
164.14additional signatures may be added to the petition or amendments of the petition may be
164.15made to correct or remedy any error or defect in signature or otherwise except a material
164.16error or defect in the description of the territory of the proposed dissolution area. If the
164.17qualifications of any signer of a petition are challenged, the chief administrative law judge
164.18shall determine the challenge forthwith on the allegations of the petition, the county
164.19auditor's certificate of land ownership, and such other evidence as may be received.
164.20    Subd. 3. Notice of intent for sanitary district dissolution. (a) Upon receipt
164.21of a petition and record of the public meeting required under subdivision 2, the chief
164.22administrative law judge shall publish a notice of intent of sanitary district dissolution
164.23in the State Register and mail or e-mail information of the publication to each property
164.24owner in the affected territory at the owner's address as given by the county auditor. The
164.25information must state the date that the notice will appear in the State Register and give
164.26the Web site location for the State Register. The notice must:
164.27(1) describe the petition for sanitary district dissolution;
164.28(2) describe the territory affected by the petition;
164.29(3) allow 30 days for submission of written comments on the petition;
164.30(4) state that a person who objects to the petition may submit a written request for
164.31hearing to the chief administrative law judge within 30 days of the publication of the
164.32notice in the State Register; and
164.33(5) state that if a timely request for hearing is not received, the chief administrative
164.34law judge may make a decision on the petition.
164.35(b) If 50 or more individual timely requests for hearing are received, the chief
164.36administrative law judge must hold a hearing on the petition according to the contested
165.1case provisions of chapter 14. The sanitary district dissolution proposers are responsible
165.2for paying all costs involved in publicizing and holding a hearing on the petition.
165.3    Subd. 4. Hearing time, place. If a hearing is required under subdivision 3, the
165.4chief administrative law judge shall designate a time and place for a hearing according
165.5to section 442A.13.
165.6    Subd. 5. Relevant factors. (a) In arriving at a decision, the chief administrative law
165.7judge shall consider the following factors:
165.8(1) public health, safety, and welfare impacts for the proposed dissolution;
165.9(2) alternatives for managing the public health impacts for the proposed dissolution;
165.10(3) equities of the petition proposal;
165.11(4) contours of the petition proposal; and
165.12(5) public notification of and interaction on the petition proposal.
165.13(b) Based upon these factors, the chief administrative law judge may order the
165.14dissolution of the sanitary district on finding that:
165.15(1) the proposed dissolution area has adequate alternatives for managing public
165.16health impacts due to the dissolution;
165.17(2) the sanitary district is not necessary to provide a long-term, equitable solution to
165.18pollution problems affecting public health, safety, and welfare;
165.19(3) property owners within the sanitary district were provided notice of the proposed
165.20dissolution and opportunity to comment on the petition proposal; and
165.21(4) the petition complied with the requirements of all applicable statutes and rules
165.22pertaining to sanitary district dissolution.
165.23(c) The chief administrative law judge may alter the boundaries of the proposed
165.24dissolution area by increasing or decreasing the area to be included or may exclude
165.25property that may be better served by another unit of government. The chief administrative
165.26law judge may also alter the boundaries of the proposed dissolution area so as to follow
165.27visible, clearly recognizable physical features for municipal boundaries.
165.28(d) The chief administrative law judge may deny sanitary district dissolution if the
165.29area, or a part thereof, would be better served by an alternative method.
165.30(e) In all cases, the chief administrative law judge shall set forth the factors that are
165.31the basis for the decision.
165.32    Subd. 6. Findings; order. (a) After the public notice period or the public hearing, if
165.33required under subdivision 3, and based on the petition, any public comments received,
165.34and, if a hearing was held, the hearing record, the chief administrative law judge shall
165.35make findings of fact and conclusions determining whether the conditions requisite for
165.36the sanitary district dissolution exist in the territory described in the petition. If the chief
166.1administrative law judge finds that conditions exist, the judge may make an order for
166.2sanitary district dissolution for the territory described in the petition.
166.3(b) If the chief administrative law judge determines that the conditions requisite for
166.4the creation of the district no longer exist therein, that all indebtedness of the district has
166.5been paid, and that all property of the district except funds has been disposed of, the judge
166.6may make an order dissolving the district and directing the distribution of its remaining
166.7funds, if any, among the related governmental subdivisions on such basis as the chief
166.8administrative law judge determines to be just and equitable, to be specified in the order.
166.9    Subd. 7. Denial of petition. If the chief administrative law judge, after conclusion
166.10of the public notice period or holding a hearing, if required, determines that the sanitary
166.11district dissolution in the territory described in the petition is not warranted, the judge
166.12shall make an order denying the petition. The chief administrative law judge shall give
166.13notice of the denial by mail or e-mail to each signer of the petition. No petition for the
166.14dissolution of a district consisting of the same territory shall be entertained within a year
166.15after the date of an order under this subdivision.
166.16    Subd. 8. Notice of order for sanitary district dissolution. The chief administrative
166.17law judge shall publish in the State Register a notice of the final order for sanitary
166.18district dissolution, referring to the date of the order and describing the territory of the
166.19dissolved district and shall mail or e-mail information of the publication to each property
166.20owner in the affected territory at the owner's address as given by the county auditor. The
166.21information must state the date that the notice will appear in the State Register and give
166.22the Web site location of the State Register. The notice must:
166.23(1) describe the petition for dissolution of the district;
166.24(2) describe the territory affected by the petition; and
166.25(3) state that a certified copy of the order shall be delivered to the secretary of state
166.26for filing ten days after public notice of the order in the State Register.
166.27    Subd. 9. Filing. (a) Ten days after public notice of the order in the State Register,
166.28the chief administrative law judge shall deliver a certified copy of the order to the secretary
166.29of state for filing. Thereupon, the sanitary district dissolution is deemed complete, and it
166.30shall be conclusively presumed that all requirements of law relating thereto have been
166.31complied with. The chief administrative law judge shall also transmit a certified copy of
166.32the order for filing to the county auditor of each county and the clerk or recorder of each
166.33municipality and organized town wherein any part of the territory of the dissolved district
166.34is situated and to the secretary of the district board.
167.1(b) The chief administrative law judge shall also transmit a certified copy of the order
167.2to the treasurer of the district, who must thereupon distribute the remaining funds of the
167.3district as directed by the order and who is responsible for the funds until so distributed.

167.4    Sec. 10. [442A.08] JOINT PUBLIC INFORMATIONAL MEETING.
167.5There must be a joint public informational meeting of the local governments of any
167.6proposed sanitary district creation, annexation, detachment, or dissolution. The joint public
167.7informational meeting must be held after the final mediation meeting or the final meeting
167.8held according to section 442A.02, subdivision 8, if any, and before the hearing on the
167.9matter is held. If no mediation meetings are held, the joint public informational meeting
167.10must be held after the initiating documents have been filed and before the hearing on the
167.11matter. The time, date, and place of the public informational meeting must be determined
167.12jointly by the local governments in the proposed creation, annexation, detachment, or
167.13dissolution areas and by the sanitary district, if one exists. The chair of the sanitary district,
167.14if one exists, and the responsible official for one of the local governments represented at
167.15the meeting must serve as the co-chairs for the informational meeting. Notice of the time,
167.16date, place, and purpose of the informational meeting must be posted by the sanitary
167.17district, if one exists, and local governments in designated places for posting notices. The
167.18sanitary district, if one exists, and represented local governments must also publish, at their
167.19own expense, notice in their respective official newspapers. If the same official newspaper
167.20is used by multiple local government representatives or the sanitary district, a joint notice
167.21may be published and the costs evenly divided. All notice required by this section must
167.22be provided at least ten days before the date for the public informational meeting. At the
167.23public informational meeting, all persons appearing must have an opportunity to be heard,
167.24but the co-chairs may, by mutual agreement, establish the amount of time allowed for each
167.25speaker. The sanitary district board, the local government representatives, and any resident
167.26or affected property owner may be represented by counsel and may place into the record of
167.27the informational meeting documents, expert opinions, or other materials supporting their
167.28positions on issues raised by the proposed proceeding. The secretary of the sanitary district,
167.29if one exists, or a person appointed by the chair must record minutes of the proceedings of
167.30the informational meeting and must make an audio recording of the informational meeting.
167.31The sanitary district, if one exists, or a person appointed by the chair must provide the
167.32chief administrative law judge and the represented local governments with a copy of the
167.33printed minutes and must provide the chief administrative law judge and the represented
167.34local governments with a copy of the audio recording. The record of the informational
167.35meeting for a proceeding under section 442A.04, 442A.05, 442A.06, or 442A.07 is
168.1admissible in any proceeding under this chapter and shall be taken into consideration by
168.2the chief administrative law judge or the chief administrative law judge's designee.

168.3    Sec. 11. [442A.09] ANNEXATION BY ORDER OF POLLUTION CONTROL
168.4AGENCY.
168.5    Subdivision 1. Annexation by ordinance alternative. If a determination or order
168.6by the Minnesota Pollution Control Agency under section 115.49 or other similar statute is
168.7made that cooperation by contract is necessary and feasible between a sanitary district and
168.8an unincorporated area located outside the existing corporate limits of the sanitary district,
168.9the sanitary district required to provide or extend through a contract a governmental
168.10service to an unincorporated area, during the statutory 90-day period provided in section
168.11115.49 to formulate a contract, may in the alternative to formulating a service contract to
168.12provide or extend the service, declare the unincorporated area described in the Minnesota
168.13Pollution Control Agency's determination letter or order annexed to the sanitary district by
168.14adopting an ordinance and submitting it to the chief administrative law judge.
168.15    Subd. 2. Chief administrative law judge's role. The chief administrative law
168.16judge may review and comment on the ordinance but shall approve the ordinance within
168.1730 days of receipt. The ordinance is final and the annexation is effective on the date the
168.18chief administrative law judge approves the ordinance.

168.19    Sec. 12. [442A.10] PETITIONERS TO PAY EXPENSES.
168.20Expenses of the preparation and submission of petitions in the proceedings under
168.21sections 442A.04 to 442A.09 shall be paid by the petitioners. Notwithstanding section
168.2216A.1283, the Office of Administrative Hearings may adopt rules according to section
168.2314.386 to establish fees necessary to support the preparation and submission of petitions
168.24in proceedings under sections 442A.04 to 442A.09. The fees collected by the Office of
168.25Administrative Hearings shall be deposited in the environmental fund.
168.26EFFECTIVE DATE.This section is effective the day following final enactment.

168.27    Sec. 13. [442A.11] TIME LIMITS FOR ORDERS; APPEALS.
168.28    Subdivision 1. Orders; time limit. All orders in proceedings under this chapter
168.29shall be issued within one year from the date of the first hearing thereon, provided that
168.30the time may be extended for a fixed additional period upon consent of all parties of
168.31record. Failure to so order shall be deemed to be an order denying the matter. An appeal
168.32may be taken from such failure to so order in the same manner as an appeal from an
168.33order as provided in subdivision 2.
169.1    Subd. 2. Grounds for appeal. (a) Any person aggrieved by an order issued under
169.2this chapter may appeal to the district court upon the following grounds:
169.3(1) the order was issued without jurisdiction to act;
169.4(2) the order exceeded the jurisdiction of the presiding administrative law judge;
169.5(3) the order was arbitrary, fraudulent, capricious, or oppressive or in unreasonable
169.6disregard of the best interests of the territory affected; or
169.7(4) the order was based upon an erroneous theory of law.
169.8(b) The appeal must be taken in the district court in the county in which the majority
169.9of the area affected is located. The appeal does not stay the effect of the order. All notices
169.10and other documents must be served on both the chief administrative law judge and the
169.11attorney general's assistant assigned to the chief administrative law judge for purposes
169.12of this chapter.
169.13(c) If the court determines that the action involved is unlawful or unreasonable or is
169.14not warranted by the evidence in case an issue of fact is involved, the court may vacate or
169.15suspend the action involved, in whole or in part, as the case requires. The matter shall then
169.16be remanded for further action in conformity with the decision of the court.
169.17(d) To render a review of an order effectual, the aggrieved person shall file with the
169.18court administrator of the district court of the county in which the majority of the area is
169.19located, within 30 days of the order, an application for review together with the grounds
169.20upon which the review is sought.
169.21(e) An appeal lies from the district court as in other civil cases.

169.22    Sec. 14. [442A.12] CHIEF ADMINISTRATIVE LAW JUDGE MAY APPEAL
169.23FROM DISTRICT COURT.
169.24An appeal may be taken under the Rules of Civil Appellate Procedure by the chief
169.25administrative law judge from a final order or judgment made or rendered by the district
169.26court when the chief administrative law judge determines that the final order or judgment
169.27adversely affects the public interest.

169.28    Sec. 15. [442A.13] UNIFORM PROCEDURES.
169.29    Subdivision 1. Hearings. (a) Proceedings initiated by the submission of an initiating
169.30document or by the chief administrative law judge shall come on for hearing within 30 to
169.3160 days from receipt of the document by the chief administrative law judge or from the
169.32date of the chief administrative law judge's action and the person conducting the hearing
169.33must submit an order no later than one year from the date of the first hearing.
170.1(b) The place of the hearing shall be in the county where a majority of the affected
170.2territory is situated, and shall be established for the convenience of the parties.
170.3(c) The chief administrative law judge shall mail notice of the hearing to the
170.4following parties: the sanitary district; any township or municipality presently governing
170.5the affected territory; any township or municipality abutting the affected territory;
170.6the county where the affected territory is situated; and each planning agency that has
170.7jurisdiction over the affected area.
170.8(d) The chief administrative law judge shall see that notice of the hearing is published
170.9for two successive weeks in a legal newspaper of general circulation in the affected area.
170.10(e) When the chief administrative law judge exercises authority to change the
170.11boundaries of the affected area so as to increase the quantity of land, the hearing shall
170.12be recessed and reconvened upon two weeks' published notice in a legal newspaper of
170.13general circulation in the affected area.
170.14    Subd. 2. Transmittal of order. The chief administrative law judge shall see that
170.15copies of the order are mailed to all parties entitled to mailed notice of hearing under
170.16subdivision 1, individual property owners if initiated in that manner, and any other party
170.17of record.

170.18    Sec. 16. [442A.14] DISTRICT BOARD OF MANAGERS.
170.19    Subdivision 1. Composition. The governing body of each district shall be a board
170.20of managers of five members, who shall be voters residing in the district and who may
170.21but need not be officers, members of governing bodies, or employees of the related
170.22governmental subdivisions, except that when there are more than five territorial units in
170.23a district, there must be one board member for each unit.
170.24    Subd. 2. Terms. The terms of the first board members elected after creation of a
170.25district shall be so arranged and determined by the electing body as to expire on the first
170.26business day in January as follows:
170.27(1) the terms of two members in the second calendar year after the year in which
170.28they were elected;
170.29(2) the terms of two other members in the third calendar year after the year in which
170.30they were elected; and
170.31(3) the term of the remaining member in the fourth calendar year after the year in
170.32which the member was elected. In case a board has more than five members, the additional
170.33members shall be assigned to the groups under clauses (1) to (3) to equalize the groups as
170.34far as practicable. Thereafter, board members shall be elected successively for regular
170.35terms beginning upon expiration of the preceding terms and expiring on the first business
171.1day in January of the third calendar year thereafter. Each board member serves until
171.2a successor is elected and has qualified.
171.3    Subd. 3. Election of board. In a district having only one territorial unit, all the
171.4members of the board shall be elected by the related governing body. In a district having
171.5more than one territorial unit, the members of the board shall be elected by the members
171.6of the related governing bodies in joint session except as otherwise provided. The electing
171.7bodies concerned shall meet and elect the first board members of a new district as soon
171.8as practicable after creation of the district and shall meet and elect board members for
171.9succeeding regular terms as soon as practicable after November 1 next preceding the
171.10beginning of the terms to be filled, respectively.
171.11    Subd. 4. Central related governing body. Upon the creation of a district
171.12having more than one territorial unit, the chief administrative law judge, on the basis of
171.13convenience for joint meeting purposes, shall designate one of the related governing
171.14bodies as the central related governing body in the order creating the district or in a
171.15subsequent special order, of which the chief administrative law judge shall notify the
171.16clerks or recorders of all the related governing bodies. Upon receipt of the notification,
171.17the clerk or recorder of the central related governing body shall immediately transmit the
171.18notification to the presiding officer of the body. The officer shall thereupon call a joint
171.19meeting of the members of all the related governing bodies to elect board members, to
171.20be held at such time as the officer shall fix at the regular meeting place of the officer's
171.21governing body or at such other place in the district as the officer shall determine. The
171.22clerk or recorder of the body must give at least ten days' notice of the meeting by mail to
171.23the clerks or recorders of all the other related governing bodies, who shall immediately
171.24transmit the notice to all the members of the related governing bodies, respectively.
171.25Subsequent joint meetings to elect board members for regular terms must be called and
171.26held in like manner. The presiding officer and the clerk or recorder of the central related
171.27governing body shall act respectively as chair and secretary of the joint electing body at
171.28any meeting thereof, but in case of the absence or disability of either of them, the body
171.29may elect a temporary substitute. A majority of the members of each related governing
171.30body is required for a quorum at any meeting of the joint electing body.
171.31    Subd. 5. Nominations. Nominations for board members may be made by petitions,
171.32each signed by ten or more voters residing and owning land in the district, filed with the
171.33clerk, recorder, or secretary of the electing body before the election meeting. No person
171.34shall sign more than one petition. The electing body shall give due consideration to all
171.35nominations but is not limited thereto.
172.1    Subd. 6. Election; single governing body. In the case of an electing body
172.2consisting of a single related governing body, a majority vote of all members is required
172.3for an election. In the case of a joint electing body, a majority vote of members present is
172.4required for an election. In case of lack of a quorum or failure to elect, a meeting of an
172.5electing body may be adjourned to a stated time and place without further notice.
172.6    Subd. 7. Election; multiple governing bodies. In any district having more than
172.7one territorial unit, the related governing bodies, instead of meeting in joint session, may
172.8elect a board member by resolutions adopted by all of them separately, concurring in the
172.9election of the same person. A majority vote of all members of each related governing
172.10body is required for the adoption of any such resolution. The clerks or recorders of the
172.11other related governing bodies shall transmit certified copies of the resolutions to the clerk
172.12or recorder of the central related governing body. Upon receipt of concurring resolutions
172.13from all the related governing bodies, the presiding officer and clerk or recorder of the
172.14central related governing body shall certify the results and furnish certificates of election
172.15as provided for a joint meeting.
172.16    Subd. 8. Vacancies. Any vacancy in the membership of a board must be filled for
172.17the unexpired term in like manner as provided for the regular election of board members.
172.18    Subd. 9. Certification of election; temporary chair. The presiding and recording
172.19officers of the electing body shall certify the results of each election to the county auditor
172.20of each county wherein any part of the district is situated and to the clerk or recorder of
172.21each related governing body and shall make and transmit to each board member elected
172.22a certificate of the board member's election. Upon electing the first board members of a
172.23district, the presiding officer of the electing body shall designate a member to serve as
172.24temporary chair for purposes of initial organization of the board, and the recording
172.25officer of the body shall include written notice thereof to all the board members with
172.26their certificates of election.

172.27    Sec. 17. [442A.15] BOARD ORGANIZATION AND PROCEDURES.
172.28    Subdivision 1. Initial, annual meetings. As soon as practicable after the election
172.29of the first board members of a district, the board shall meet at the call of the temporary
172.30chair to elect officers and take other appropriate action for organization and administration
172.31of the district. Each board shall hold a regular annual meeting at the call of the chair or
172.32otherwise as the board prescribes on or as soon as practicable after the first business day in
172.33January of each year and such other regular and special meetings as the board prescribes.
172.34    Subd. 2. Officers. The officers of each district shall be a chair and a vice-chair,
172.35who shall be members of the board, and a secretary and a treasurer, who may but need
173.1not be members of the board. The board of a new district at its initial meeting or as soon
173.2thereafter as practicable shall elect the officers to serve until the first business day in
173.3January next following. Thereafter, the board shall elect the officers at each regular annual
173.4meeting for terms expiring on the first business day in January next following. Each
173.5officer serves until a successor is elected and has qualified.
173.6    Subd. 3. Meeting place; offices. The board at its initial meeting or as soon
173.7thereafter as practicable shall provide for suitable places for board meetings and for offices
173.8of the district officers and may change the same thereafter as the board deems advisable.
173.9The meeting place and offices may be the same as those of any related governing body,
173.10with the approval of the body. The secretary of the board shall notify the secretary of state,
173.11the county auditor of each county wherein any part of the district is situated, and the clerk
173.12or recorder of each related governing body of the locations and post office addresses of the
173.13meeting place and offices and any changes therein.
173.14    Subd. 4. Budget. At any time before the proceeds of the first tax levy in a district
173.15become available, the district board may prepare a budget comprising an estimate of the
173.16expenses of organizing and administering the district until the proceeds are available, with
173.17a proposal for apportionment of the estimated amount among the related governmental
173.18subdivisions, and may request the governing bodies thereof to advance funds according to
173.19the proposal. The governing bodies may authorize advancement of the requested amounts,
173.20or such part thereof as they respectively deem proper, from any funds available in their
173.21respective treasuries. The board shall include in its first tax levy after receipt of any such
173.22advancements a sufficient sum to cover the same and shall cause the same to be repaid,
173.23without interest, from the proceeds of taxes as soon as received.

173.24    Sec. 18. [442A.16] DISTRICT STATUS AND POWERS.
173.25    Subdivision 1. Status. Every district shall be a public corporation and a governmental
173.26subdivision of the state and shall be deemed to be a municipality or municipal corporation
173.27for the purpose of obtaining federal or state grants or loans or otherwise complying with
173.28any provision of federal or state law or for any other purpose relating to the powers and
173.29purposes of the district for which such status is now or hereafter required by law.
173.30    Subd. 2. Powers and purpose. Every district shall have the powers and purposes
173.31prescribed by this chapter and such others as may now or hereafter be prescribed by law.
173.32No express grant of power or enumeration of powers herein shall be deemed to limit the
173.33generality or scope of any grant of power.
173.34    Subd. 3. Scope of powers and duties. Except as otherwise provided, a power or
173.35duty vested in or imposed upon a district or any of its officers, agents, or employees shall
174.1not be deemed exclusive and shall not supersede or abridge any power or duty vested in or
174.2imposed upon any other agency of the state or any governmental subdivision thereof, but
174.3shall be supplementary thereto.
174.4    Subd. 4. Exercise of power. All the powers of a district shall be exercised by its
174.5board of managers except so far as approval of any action by popular vote or by any other
174.6authority may be expressly required by law.
174.7    Subd. 5. Lawsuits; contracts. A district may sue and be sued and may enter into
174.8any contract necessary or proper for the exercise of its powers or the accomplishment
174.9of its purposes.
174.10    Subd. 6. Property acquisition. A district may acquire by purchase, gift, or
174.11condemnation or may lease or rent any real or personal property within or without the
174.12district that may be necessary for the exercise of district powers or the accomplishment of
174.13district purposes, may hold the property for such purposes, and may lease, rent out, sell, or
174.14otherwise dispose of any property not needed for such purposes.
174.15    Subd. 7. Acceptance of money or property. A district may accept gifts, grants,
174.16or loans of money or other property from the United States, the state, or any person,
174.17corporation, or other entity for district purposes; may enter into any agreement required in
174.18connection therewith; and may hold, use, and dispose of the money or property according
174.19to the terms of the gift, grant, loan, or agreement relating thereto.

174.20    Sec. 19. [442A.17] SPECIFIC PURPOSES AND POWERS.
174.21    Subdivision 1. Pollution prevention. A district may construct, install, improve,
174.22maintain, and operate any system, works, or facilities within or without the district
174.23required to control and prevent pollution of any waters of the state within its territory.
174.24    Subd. 2. Sewage disposal. A district may construct, install, improve, maintain,
174.25and operate any system, works, or facilities within or without the district required to
174.26provide for, regulate, and control the disposal of sewage, industrial waste, and other waste
174.27originating within its territory. The district may require any person upon whose premises
174.28there is any source of sewage, industrial waste, or other waste within the district to
174.29connect the premises with the disposal system, works, or facilities of the district whenever
174.30reasonable opportunity therefor is provided.
174.31    Subd. 3. Garbage, refuse disposal. A district may construct, install, improve,
174.32maintain, and operate any system, works, or facilities within or without the district required
174.33to provide for, regulate, and control the disposal of garbage or refuse originating within the
174.34district. The district may require any person upon whose premises any garbage or refuse is
175.1produced or accumulated to dispose of the garbage or refuse through the system, works, or
175.2facilities of the district whenever reasonable opportunity therefor is provided.
175.3    Subd. 4. Water supply. A district may procure supplies of water necessary for any
175.4purpose under subdivisions 1 to 3 and may construct, install, improve, maintain, and
175.5operate any system, works, or facilities required therefor within or without the district.
175.6    Subd. 5. Roads. (a) To maintain the integrity of and facilitate access to district
175.7systems, works, or facilities, the district may maintain and repair a road by agreement with
175.8the entity that was responsible for the performance of maintenance and repair immediately
175.9prior to the agreement. Maintenance and repair includes but is not limited to providing
175.10lighting, snow removal, and grass mowing.
175.11(b) A district shall establish a taxing subdistrict of benefited property and shall levy
175.12special taxes, pursuant to section 442A.24, subdivision 2, for the purposes of paying the
175.13cost of improvement or maintenance of a road under paragraph (a).
175.14(c) For purposes of this subdivision, a district shall not be construed as a road
175.15authority under chapter 160.
175.16(d) The district and its officers and employees are exempt from liability for any tort
175.17claim for injury to person or property arising from travel on a road maintained by the
175.18district and related to the road's maintenance or condition.

175.19    Sec. 20. [442A.18] DISTRICT PROJECTS AND FACILITIES.
175.20    Subdivision 1. Public property. For the purpose of constructing, improving,
175.21maintaining, or operating any system, works, or facilities designed or used for any purpose
175.22under section 442A.17, a district, its officers, agents, employees, and contractors may enter,
175.23occupy, excavate, and otherwise operate in, upon, under, through, or along any public
175.24highway, including a state trunk highway, or any street, park, or other public grounds so
175.25far as necessary for such work, with the approval of the governing body or other authority
175.26in charge of the public property affected and on such terms as may be agreed upon with the
175.27governing body or authority respecting interference with public use, restoration of previous
175.28conditions, compensation for damages, and other pertinent matters. If an agreement cannot
175.29be reached after reasonable opportunity therefor, the district may acquire the necessary
175.30rights, easements, or other interests in the public property by condemnation, subject to all
175.31applicable provisions of law as in case of taking private property, upon condition that the
175.32court shall determine that there is paramount public necessity for the acquisition.
175.33    Subd. 2. Use of other systems. A district may, upon such terms as may be
175.34agreed upon with the respective governing bodies or authorities concerned, provide for
175.35connecting with or using; lease; or acquire and take over any system, works, or facilities
176.1for any purpose under section 442A.17 belonging to any other governmental subdivision
176.2or other public agency.
176.3    Subd. 3. Use by other governmental bodies. A district may, upon such terms
176.4as may be agreed upon with the respective governing bodies or authorities concerned,
176.5authorize the use by any other governmental subdivision or other public agency of any
176.6system, works, or facilities of the district constructed for any purpose under section
176.7442A.17 so far as the capacity thereof is sufficient beyond the needs of the district. A
176.8district may extend any such system, works, or facilities and permit the use thereof by
176.9persons outside the district, so far as the capacity thereof is sufficient beyond the needs of
176.10the district, upon such terms as the board may prescribe.
176.11    Subd. 4. Joint projects. A district may be a party to a joint cooperative project,
176.12undertaking, or enterprise with one or more other governmental subdivisions or other
176.13public agencies for any purpose under section 442A.17 upon such terms as may be
176.14agreed upon between the governing bodies or authorities concerned. Without limiting the
176.15effect of the foregoing provision or any other provision of this chapter, a district, with
176.16respect to any of said purposes, may act under and be subject to section 471.59, or any
176.17other appropriate law providing for joint or cooperative action between governmental
176.18subdivisions or other public agencies.

176.19    Sec. 21. [442A.19] CONTROL OF SANITARY FACILITIES.
176.20A district may regulate and control the construction, maintenance, and use of privies,
176.21cesspools, septic tanks, toilets, and other facilities and devices for the reception or disposal
176.22of human or animal excreta or other domestic wastes within its territory so far as necessary
176.23to prevent nuisances or pollution or to protect the public health, safety, and welfare
176.24and may prohibit the use of any such facilities or devices not connected with a district
176.25disposal system, works, or facilities whenever reasonable opportunity for such connection
176.26is provided; provided, that the authority of a district under this section does not extend
176.27or apply to the construction, maintenance, operation, or use by any person other than the
176.28district of any disposal system or part thereof within the district under and in accordance
176.29with a valid and existing permit issued by the Minnesota Pollution Control Agency.

176.30    Sec. 22. [442A.20] DISTRICT PROGRAMS, SURVEYS, AND STUDIES.
176.31A district may develop general programs and particular projects within the scope of
176.32its powers and purposes and may make all surveys, studies, and investigations necessary
176.33for the programs and projects.

177.1    Sec. 23. [442A.21] GENERAL AND MUNICIPALITY POWERS.
177.2A district may do and perform all other acts and things necessary or proper for the
177.3effectuation of its powers and the accomplishment of its purposes. Without limiting the
177.4effect of the foregoing provision or any other provision of this chapter, a district, with
177.5respect to each and all of said powers and purposes, shall have like powers as are vested
177.6in municipalities with respect to any similar purposes. The exercise of such powers by a
177.7district and all matters pertaining thereto are governed by the law relating to the exercise
177.8of similar powers by municipalities and matters pertaining thereto, so far as applicable,
177.9with like force and effect, except as otherwise provided.

177.10    Sec. 24. [442A.22] ADVISORY COMMITTEE.
177.11A district board of managers may appoint an advisory committee with membership
177.12and duties as the board prescribes.

177.13    Sec. 25. [442A.23] BOARD POWERS.
177.14    Subdivision 1. Generally. The board of managers of every district shall have charge
177.15and control of all the funds, property, and affairs of the district. With respect thereto, the
177.16board has the same powers and duties as are provided by law for a municipality with respect
177.17to similar municipal matters, except as otherwise provided. Except as otherwise provided,
177.18the chair, vice-chair, secretary, and treasurer of the district have the same powers and duties,
177.19respectively, as the mayor, acting mayor, clerk, and treasurer of a municipality. Except as
177.20otherwise provided, the exercise of the powers and the performance of the duties of the
177.21board and officers of the district and all other activities, transactions, and procedures of the
177.22district or any of its officers, agents, or employees, respectively, are governed by the law
177.23relating to similar matters in a municipality, so far as applicable, with like force and effect.
177.24    Subd. 2. Regulation of district. The board may enact ordinances, prescribe
177.25regulations, adopt resolutions, and take other appropriate action relating to any matter
177.26within the powers and purposes of the district and may do and perform all other acts and
177.27things necessary or proper for the effectuation of said powers and the accomplishment
177.28of said purposes. The board may provide that violation of a district ordinance is a penal
177.29offense and may prescribe penalties for violations, not exceeding those prescribed by
177.30law for violation of municipal ordinances.
177.31    Subd. 3. Arrest; prosecution. (a) Violations of district ordinances may be
177.32prosecuted before any court having jurisdiction of misdemeanors. Any peace officer may
177.33make arrests for violations committed anywhere within the district in the same manner as
177.34for violations of city ordinances or for statutory misdemeanors.
178.1(b) All fines collected shall be deposited in the treasury of the district.

178.2    Sec. 26. [442A.24] TAX LEVIES, ASSESSMENTS, AND SERVICE CHARGES.
178.3    Subdivision 1. Tax levies. The board may levy taxes for any district purpose on all
178.4property taxable within the district.
178.5    Subd. 2. Particular area. In the case where a particular area within the district,
178.6but not the entire district, is benefited by a system, works, or facilities of the district,
178.7the board, after holding a public hearing as provided by law for levying assessments on
178.8benefited property, shall by ordinance establish such area as a taxing subdistrict, to be
178.9designated by number, and shall levy special taxes on all the taxable property therein, to be
178.10accounted for separately and used only for the purpose of paying the cost of construction,
178.11improvement, acquisition, maintenance, or operation of such system, works, or facilities,
178.12or paying the principal and interest on bonds issued to provide funds therefor and expenses
178.13incident thereto. The hearing may be held jointly with a hearing for the purpose of levying
178.14assessments on benefited property within the proposed taxing subdistrict.
178.15    Subd. 3. Benefited property. The board shall levy assessments on benefited property
178.16to provide funds for payment of the cost of construction, improvement, or acquisition of
178.17any system, works, or facilities designed or used for any district purpose or for payment of
178.18the principal of and interest on any bonds issued therefor and expenses incident thereto.
178.19    Subd. 4. Service charges. The board shall prescribe service, use, or rental charges
178.20for persons or premises connecting with or making use of any system, works, or facilities
178.21of the district; prescribe the method of payment and collection of the charges; and provide
178.22for the collection thereof for the district by any related governmental subdivision or
178.23other public agency on such terms as may be agreed upon with the governing body or
178.24other authority thereof.

178.25    Sec. 27. [442A.25] BORROWING POWERS; BONDS.
178.26    Subdivision 1. Borrowing power. The board may authorize the borrowing of
178.27money for any district purpose and provide for the repayment thereof, subject to chapter
178.28475. The taxes initially levied by any district according to section 475.61 for the payment
178.29of district bonds, upon property within each municipality included in the district, shall be
178.30included in computing the levy of the municipality.
178.31    Subd. 2. Bond issuance. The board may authorize the issuance of bonds or
178.32obligations of the district to provide funds for the construction, improvement, or
178.33acquisition of any system, works, or facilities for any district purpose or for refunding
178.34any prior bonds or obligations issued for any such purpose and may pledge the full faith
179.1and credit of the district; the proceeds of tax levies or assessments; service, use, or
179.2rental charges; or any combination thereof to the payment of such bonds or obligations
179.3and interest thereon or expenses incident thereto. An election or vote of the people of
179.4the district is required to authorize the issuance of any bonds or obligations. Except as
179.5otherwise provided in this chapter, the forms and procedures for issuing and selling bonds
179.6and provisions for payment thereof must comply with chapter 475.

179.7    Sec. 28. [442A.26] FUNDS; DISTRICT TREASURY.
179.8The proceeds of all tax levies, assessments, service, use, or rental charges, and
179.9other income of the district must be deposited in the district treasury and must be held
179.10and disposed of as the board may direct for district purposes, subject to any pledges or
179.11dedications made by the board for the use of particular funds for the payment of bonds,
179.12interest thereon, or expenses incident thereto or for other specific purposes.

179.13    Sec. 29. [442A.27] EFFECT OF DISTRICT ORDINANCES AND FACILITIES.
179.14In any case where an ordinance is enacted or a regulation adopted by a district
179.15board relating to the same subject matter and applicable in the same area as an existing
179.16ordinance or regulation of a related governmental subdivision for the district, the district
179.17ordinance or regulation, to the extent of its application, supersedes the ordinance or
179.18regulation of the related governmental subdivision. In any case where an area within a
179.19district is served for any district purpose by a system, works, or facilities of the district,
179.20no system, works, or facilities shall be constructed, maintained, or operated for the same
179.21purpose in the same area by any related governmental subdivision or other public agency
179.22except as approved by the district board.

179.23    Sec. 30. [442A.28] APPLICATION.
179.24This chapter does not abridge or supersede any authority of the Minnesota Pollution
179.25Control Agency or the commissioner of health, but is subject and supplementary thereto.
179.26Districts and members of district boards are subject to the authority of the Minnesota
179.27Pollution Control Agency and have no power or authority to abate or control pollution that
179.28is permitted by and in accord with any classification of waters, standards of water quality,
179.29or permit established, fixed, or issued by the Minnesota Pollution Control Agency.

179.30    Sec. 31. [442A.29] CHIEF ADMINISTRATIVE LAW JUDGE'S POWERS.
179.31    Subdivision 1. Alternative dispute resolution. (a) Notwithstanding sections
179.32442A.01 to 442A.28, before assigning a matter to an administrative law judge for hearing,
180.1the chief administrative law judge, upon consultation with affected parties and considering
180.2the procedures and principles established in sections 442A.01 to 442A.28, may require
180.3that disputes over proposed sanitary district creations, attachments, detachments, or
180.4dissolutions be addressed in whole or in part by means of alternative dispute resolution
180.5processes in place of, or in connection with, hearings that would otherwise be required
180.6under sections 442A.01 to 442A.28, including those provided in chapter 14.
180.7(b) In all proceedings, the chief administrative law judge has the authority and
180.8responsibility to conduct hearings and issue final orders related to the hearings under
180.9sections 442A.01 to 442A.28.
180.10    Subd. 2. Cost of proceedings. (a) The parties to any matter directed to alternative
180.11dispute resolution under subdivision 1 must pay the costs of the alternative dispute
180.12resolution process or hearing in the proportions that the parties agree to.
180.13(b) Notwithstanding section 14.53 or other law, the Office of Administrative
180.14Hearings is not liable for the costs.
180.15(c) If the parties do not agree to a division of the costs before the commencement of
180.16mediation, arbitration, or hearing, the costs must be allocated on an equitable basis by
180.17the mediator, arbitrator, or chief administrative law judge.
180.18(d) The chief administrative law judge may contract with the parties to a matter for
180.19the purpose of providing administrative law judges and reporters for an administrative
180.20proceeding or alternative dispute resolution.
180.21(e) The chief administrative law judge shall assess the cost of services rendered by
180.22the Office of Administrative Hearings as provided by section 14.53.
180.23    Subd. 3. Parties. In this section, "party" means:
180.24(1) a property owner, group of property owners, sanitary district, municipality, or
180.25township that files an initiating document or timely objection under this chapter;
180.26(2) the sanitary district, municipality, or township within which the subject area
180.27is located;
180.28(3) a municipality abutting the subject area; and
180.29(4) any other person, group of persons, or governmental agency residing in, owning
180.30property in, or exercising jurisdiction over the subject area that submits a timely request
180.31and is determined by the presiding administrative law judge to have a direct legal interest
180.32that will be affected by the outcome of the proceeding.
180.33    Subd. 4. Effectuation of agreements. Matters resolved or agreed to by the parties
180.34as a result of an alternative dispute resolution process, or otherwise, may be incorporated
180.35into one or more stipulations for purposes of further proceedings according to the
180.36applicable procedures and statutory criteria of this chapter.
181.1    Subd. 5. Limitations on authority. Nothing in this section shall be construed to
181.2permit a sanitary district, municipality, town, or other political subdivision to take, or
181.3agree to take, an action that is not otherwise authorized by this chapter.

181.4    Sec. 32. REPEALER.
181.5Minnesota Statutes 2012, sections 115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, and 10;
181.6115.19; 115.20; 115.21; 115.22; 115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29;
181.7115.30; 115.31; 115.32; 115.33; 115.34; 115.35; 115.36; and 115.37, are repealed.

181.8    Sec. 33. EFFECTIVE DATE.
181.9Unless otherwise provided in this article, sections 1 to 32 are effective August
181.101, 2013."
181.11Amend the title accordingly

APPROPRIATIONS

Available for the Year

Ending June 30