Bill Text: MN SF1607 | 2013-2014 | 88th Legislature | Engrossed

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Bill Title: Omnibus environment, natural resources, agriculture, commerce, energy, jobs, and economic development appropriations bill

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Engrossed - Dead) 2013-04-20 - Senate file first reading, referred to Ways and Means [SF1607 Detail]

Download: Minnesota-2013-SF1607-Engrossed.html

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A bill for an act

relating to state government; appropriating money for environment, natural
resources, agriculture, commerce, energy, jobs, and economic development;
modifying and providing for certain fees; modifying and providing for
disposition of certain revenue; modifying pesticide control; modifying animal
waste technician provisions; making technical changes; modifying certain permit
requirements; providing for federal law compliance; providing for certain
easements; modifying snowmobile registration provisions; modifying state trails;
modifying State Timber Act; modifying certain park boundaries and expenditures;
modifying reporting requirements; modifying Petroleum Tank Release Cleanup
Act; providing for silica sand mining model standards and technical assistance;
providing for wastewater laboratory certification; providing for product
stewardship program; providing for discontinuance of Hennepin County Soil and
Water Conservation District; providing for school forests; providing for county
intermediate timber sales; authorizing recreation of Hall's Island; providing
for certain interim ordinance extension or renewal; repealing certain pollution
control rules; providing for solar energy production incentives; creating Office of
Broadband Development; modifying certain environmental review; modifying
public utility provisions; providing for sanitary districts; modifying labor and
industry policy provisions; modifying employment and economic development
programs; reducing unemployment insurance employer tax; creating pilot
projects; modifying residential contract for deed requirements; providing
penalties; requiring studies and reports; requiring rulemaking;amending
Minnesota Statutes 2012, sections 13.7411, subdivision 4; 16B.122, subdivision
2; 17.03, subdivision 3; 17.1015; 18B.305; 18C.430; 18C.433, subdivision 1;
45.0135, subdivision 6; 60A.14, subdivision 1; 65B.84, subdivision 1; 84.027, by
adding a subdivision; 84.415, by adding a subdivision; 84.63; 84.82, subdivision
3, by adding a subdivision; 84.8205, subdivision 1; 85.015, subdivision 13;
85.052, subdivision 6; 85.053, subdivision 8; 85.054, by adding a subdivision;
85.055, subdivisions 1, 2; 85.42; 89.0385; 89.41; 90.01, subdivisions 4, 5, 6, 8,
11; 90.031, subdivision 4; 90.041, subdivisions 2, 5, 6, 9, by adding subdivisions;
90.045; 90.061, subdivision 8; 90.101, subdivision 1; 90.121; 90.145; 90.151,
subdivisions 1, 2, 3, 4, 6, 7, 8, 9; 90.161; 90.162; 90.171; 90.181, subdivision 2;
90.191, subdivision 1; 90.193; 90.195; 90.201, subdivision 2a; 90.211; 90.221;
90.252, subdivision 1; 90.301, subdivisions 2, 4; 90.41, subdivision 1; 93.46, by
adding a subdivision; 93.481, subdivision 3; 97A.401, subdivision 3; 115A.1320,
subdivision 1; 115B.20, subdivision 6; 115B.28, subdivision 1; 115B.421;
115C.02, subdivision 4; 115C.08, subdivision 4, by adding a subdivision;
115D.10; 116.48, subdivision 6; 116C.03, subdivisions 2, 4, 5; 116J.8731,
subdivisions 2, 3; 116U.26; 136F.37; 179.02, by adding a subdivision; 216B.16,
by adding a subdivision; 237.012, subdivision 3; 237.52, subdivisions 4, 5;
239.101, subdivision 3; 245.4712, subdivision 1; 268A.13; 268A.14, subdivision
1; 275.066; 282.01, subdivisions 1a, 1d; 282.04, by adding a subdivision; 298.22,
subdivision 1; 298.28, subdivision 9b; 299F.011, by adding a subdivision; 326.02,
subdivision 5; 326B.163, by adding subdivisions; 326B.184, subdivisions 1, 2,
by adding a subdivision; 326B.187; 326B.33, subdivisions 19, 21; 326B.36,
subdivision 7; 326B.37, by adding a subdivision; 326B.49, subdivisions 2, 3;
341.321; 473.846; 507.235, subdivision 2; 559.211, subdivision 2; Laws 2010,
chapter 215, article 3, section 3, subdivision 6, as amended; Laws 2010, chapter
361, article 3, section 7; proposing coding for new law in Minnesota Statutes,
chapters 84; 90; 93; 115; 115A; 116; 116J; 116L; 216C; 237; 326B; 383B; 559;
proposing coding for new law as Minnesota Statutes, chapter 442A; repealing
Minnesota Statutes 2012, sections 90.163; 90.173; 90.41, subdivision 2; 115.18,
subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10; 115.19; 115.20; 115.21; 115.22; 115.23;
115.24; 115.25; 115.26; 115.27; 115.28; 115.29; 115.30; 115.31; 115.32; 115.33;
115.34; 115.35; 115.36; 115.37; 116W.01; 116W.02; 116W.03; 116W.035;
116W.04; 116W.05; 116W.06; 116W.20; 116W.21; 116W.23; 116W.24; 116W.25;
116W.26; 116W.27; 116W.28; 116W.29; 116W.30; 116W.31; 116W.32; 116W.33;
116W.34; 326B.31, subdivisions 18, 19, 22; 507.235, subdivision 4; Laws 2011,
First Special Session chapter 2, article 4, section 30; Minnesota Rules, parts
1307.0032; 6115.0190, subparts 3, 5; 6115.0191, subpart 8, item A; 7021.0010,
subparts 1, 2, 4, 5; 7021.0020; 7021.0030; 7021.0040; 7021.0050, subpart
5; 9210.0300; 9210.0310; 9210.0320; 9210.0330; 9210.0340; 9210.0350;
9210.0360; 9210.0370; 9210.0380; 9220.0530, subpart 6.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS

Section 1. SUMMARY OF APPROPRIATIONS.

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

			2014		2015		Total
	General	$	89,107,000	$	89,153,000	$	178,260,000
	State Government Special Revenue		75,000		75,000		150,000
	Environmental		67,530,000		67,350,000		134,880,000
	Natural Resources		88,397,000		88,397,000		176,794,000
	Game and Fish		89,682,000		89,682,000		179,364,000
	Remediation		10,596,000		10,596,000		21,192,000
	Permanent School		200,000		200,000		400,000
	Total	$	345,587,000	$	345,453,000	$	691,040,000

Sec. 2. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.

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

				APPROPRIATIONS
				Available for the Year
				Ending June 30
					2014		2015

Sec. 3. POLLUTION CONTROL AGENCY

Subdivision 1.Total Appropriation

$

83,049,000

$

82,869,000

	Appropriations by Fund
		2014	2015
	General	4,948,000	4,948,000
	State Government Special Revenue	75,000	75,000
	Environmental	67,530,000	67,350,000
	Remediation	10,496,000	10,496,000

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

Subd. 2.Water

23,697,000

23,697,000

	Appropriations by Fund
	General	3,737,000	3,737,000
	State Government Special Revenue	75,000	75,000
	Environmental	19,885,000	19,885,000

$1,959,000 the first year and $1,959,000
the second year are for grants to delegated
counties to administer the county feedlot
program under Minnesota Statutes, section
116.0711, subdivisions 2 and 3. Money
remaining after the first year is available for
the second year.
$500,000 the first year and $500,000 the
second year are from the environmental fund
for additional water program operations
related to permitting. This is a onetime
appropriation.
$740,000 the first year and $740,000 the
second year are from the environmental
fund to address the need for continued
increased activity in the areas of new
technology review, technical assistance
for local governments, and enforcement
under Minnesota Statutes, sections 115.55
to 115.58, and to complete the requirements
of Laws 2003, chapter 128, article 1, section
165.
$400,000 the first year and $400,000
the second year are for the clean water
partnership program. Any unexpended
balance in the first year does not cancel but
is available in the second year. Priority shall
be given to projects preventing impairments
and degradation of lakes, rivers, streams,
and groundwater according to Minnesota
Statutes, section 114D.20, subdivision 2,
clause (4).
$664,000 the first year and $664,000 the
second year are from the environmental
fund for subsurface sewage treatment
system (SSTS) program administration
and community technical assistance and
education, including grants and technical
assistance to communities for water quality
protection. Of this amount, $80,000 each
year is for assistance to counties through
grants for SSTS program administration.
Any unexpended balance in the first year does
not cancel but is available in the second year.
$105,000 the first year and $105,000 the
second year are from the environmental fund
for registration of wastewater laboratories.
The commissioner shall conduct testing on
the effectiveness of peat-based products for
control of oil spills in the state. By January
15, 2014, the commissioner shall report on
the testing to the chairs and ranking minority
members of the legislative committees and
divisions with jurisdiction over environment
and natural resources and finance. The
report shall include an analysis of the cost
to maintain stocks of peat-based materials at
strategic locations in the state.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered on or
before June 30, 2015, as grants or contracts
for SSTS's, surface water and groundwater
assessments, total maximum daily loads,
storm water, and water quality protection in
this subdivision are available until June 30,
2018.

Subd. 3.Air

14,431,000

14,301,000

	Appropriations by Fund
	Environmental	14,431,000	14,301,000

$200,000 the first year and $200,000 the
second year are from the environmental fund
for a monitoring program under Minnesota
Statutes, section 116.454.
Up to $150,000 the first year and $150,000
the second year may be transferred from the
environmental fund to the small business
environmental improvement loan account
established in Minnesota Statutes, section
116.993.
$425,000 the first year and $125,000 the
second year are from the environmental
fund for monitoring ambient air for
hazardous pollutants in the metropolitan
area, including the purchase of mobile
monitoring equipment. The commissioner,
when selecting areas to monitor with the
new mobile monitoring equipment, shall
give priority to areas where low-income,
indigenous American Indians, and
communities of color are disproportionately
impacted by pollution from highway traffic,
air traffic, and industrial sources.

Subd. 4.Land

17,412,000

17,412,000

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

All money for environmental response,
compensation, and compliance in the
remediation fund not otherwise appropriated
is appropriated to the commissioners of the
Pollution Control Agency and agriculture
for purposes of Minnesota Statutes, section
115B.20, subdivision 2, clauses (1), (2),
(3), (6), and (7). At the beginning of each
fiscal year, the two commissioners shall
jointly submit an annual spending plan
to the commissioner of management and
budget that maximizes the utilization of
resources and appropriately allocates the
money between the two departments. This
appropriation is available until June 30, 2015.
$3,616,000 the first year and $3,616,000 the
second year are from the remediation fund for
purposes of the leaking underground storage
tank program to protect the land. These same
annual amounts are transferred from the
petroleum tank fund to the remediation fund.
$252,000 the first year and $252,000 the
second year are from the remediation fund
for transfer to the commissioner of health for
private water supply monitoring and health
assessment costs in areas contaminated
by unpermitted mixed municipal solid
waste disposal facilities and drinking water
advisories and public information activities
for areas contaminated by hazardous releases.

Subd. 5.Environmental Assistance and Cross-Media

27,138,000

27,088,000

	Appropriations by Fund
	Environmental	26,298,000	26,248,000
	General	840,000	840,000

$14,250,000 the first year and $14,250,000
the second year are from the environmental
fund for SCORE block grants to counties.
$119,000 the first year and $119,000 the
second year are from the environmental
fund for environmental assistance grants
or loans under Minnesota Statutes, section
115A.0716. Any unencumbered grant and
loan balances in the first year do not cancel
but are available for grants and loans in the
second year.
$89,000 the first year and $89,000 the
second year are from the environmental fund
for duties related to harmful chemicals in
products under Minnesota Statutes, sections
116.9401 to 116.9407. Of this amount,
$57,000 each year is transferred to the
commissioner of health.
$200,000 the first year and $200,000 the
second year are from the environmental
fund for the costs of implementing general
operating permits for feedlots over 1,000
animal units.
$913,000 the first year and $913,000 the
second year are from the environmental fund
to continue perfluorochemical biomonitoring
in eastern metropolitan communities, as
recommended by the Environmental Health
Tracking and Biomonitoring Advisory Panel,
and address other environmental health risks.
Of this amount, $812,000 the first year and
$812,000 the second year are for transfer to
the Department of Health.
$151,000 the first year and $151,000 the
second year are from the general fund for
Environmental Quality Board operations and
support.
$75,000 the first year and $50,000 the second
year are from the environmental fund for
transfer to the Office of Administrative
Hearings to establish sanitary districts.
All money deposited in the environmental
fund for the metropolitan solid waste
landfill fee in accordance with Minnesota
Statutes, section 473.843, and not otherwise
appropriated, is appropriated for the purposes
of Minnesota Statutes, section 473.844.
$25,000 the first year is from the
environmental fund to prepare and submit
a report to the chairs and ranking minority
members of the senate and house of
representatives committees and divisions
with jurisdiction over the environment and
natural resources by January 15, 2014, with
recommendations for a statewide recycling
refund program for beverage containers that
achieves an 80 percent recycling rate. In
preparing the report, the commissioner shall
consult with stakeholders, including retailers,
collectors, recyclers, local governments, and
consumers on options to increase the current
recycling rate. An assessment of the financial
impact of any recommended program shall
be included in the report. This is a onetime
appropriation.
$315,000 the first year and $315,000 the
second year are from the environmental
fund for the electronic waste program under
Minnesota Statutes, sections 115A.1310 to
115A.1330.
$300,000 the first year and $300,000 the
second year are from the environmental fund
for the additional duties related to silica
sand mining in this act. The agency may
transfer a portion of this appropriation to the
commissioners of natural resources, health,
and transportation for additional costs of
duties related to silica sand mining in this
act. This is a onetime appropriation.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered on
or before June 30, 2015, as contracts or
grants for surface water and groundwater
assessments; environmental assistance
awarded under Minnesota Statutes, section
115A.0716; technical and research assistance
under Minnesota Statutes, section 115A.152;
technical assistance under Minnesota
Statutes, section 115A.52; and pollution
prevention assistance under Minnesota
Statutes, section 115D.04, are available until
June 30, 2017.

Subd. 6.Administrative Support

371,000

371,000

Subd. 7.Remediation Fund

The commissioner shall transfer up to
$46,000,000 from the environmental fund to
the remediation fund for the purposes of the
remediation fund under Minnesota Statutes,
section 116.155, subdivision 2.

Sec. 4. NATURAL RESOURCES

Subdivision 1.Total Appropriation

$

233,706,000

$

233,752,000

	Appropriations by Fund
		2014	2015
	General	61,647,000	61,693,000
	Natural Resources	82,077,000	82,077,000
	Game and Fish	89,682,000	89,682,000
	Remediation	100,000	100,000
	Permanent School	200,000	200,000

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

Subd. 2.Land and Mineral Resources Management

6,830,000

6,876,000

	Appropriations by Fund
	General	1,725,000	1,771,000
	Natural Resources	3,472,000	3,472,000
	Game and Fish	1,433,000	1,433,000
	Permanent School	200,000	200,000

$68,000 the first year and $68,000 the
second year are for minerals cooperative
environmental research, of which $34,000
the first year and $34,000 the second year are
available only as matched by $1 of nonstate
money for each $1 of state money. The
match may be cash or in-kind.
$251,000 the first year and $251,000 the
second year are for iron ore cooperative
research. Of this amount, $200,000 each year
is from the minerals management account
in the natural resources fund. $175,000 the
first year and $175,000 the second year are
available only as matched by $1 of nonstate
money for each $1 of state money. The match
may be cash or in-kind. Any unencumbered
balance from the first year does not cancel
and is available in the second year.
$2,696,000 the first year and $2,696,000
the second year are from the minerals
management account in the natural resources
fund for use as provided in Minnesota
Statutes, section 93.2236, paragraph (c),
for mineral resource management, projects
to enhance future mineral income, and
projects to promote new mineral resource
opportunities.
$200,000 the first year and $200,000 the
second year are from the state forest suspense
account in the permanent school fund to
accelerate land exchanges, land sales, and
commercial leasing of school trust lands and
to identify, evaluate, and lease construction
aggregate located on school trust lands. This
appropriation is to be used for securing
maximum long-term economic return
from the school trust lands consistent with
fiduciary responsibilities and sound natural
resources conservation and management
principles.
The appropriations in Laws 2007, chapter
57, article 1, section 4, subdivision 2, as
amended by Laws 2009, chapter 37, article
1, section 60, and as extended by Laws
2011, First Special Session chapter 2, article
1, section 4, subdivision 2, for support of
the land records management system are
available until June 30, 2015.

Subd. 3.Ecological and Water Resources

25,443,000

25,443,000

	Appropriations by Fund
	General	11,317,000	11,317,000
	Natural Resources	10,183,000	10,183,000
	Game and Fish	3,943,000	3,943,000

$2,942,000 the first year and $2,942,000 the
second year are from the invasive species
account in the natural resources fund and
$3,706,000 the first year and $3,706,000 the
second year are from the general fund for
management, public awareness, assessment
and monitoring research, and water access
inspection to prevent the spread of invasive
species; management of invasive plants in
public waters; and management of terrestrial
invasive species on state-administered lands.
$5,000,000 the first year and $5,000,000 the
second year are from the water management
account in the natural resources fund for only
the purposes specified in Minnesota Statutes,
section 103G.27, subdivision 2.
$103,000 the first year and $103,000 the
second year are for a grant to the Mississippi
Headwaters Board for up to 50 percent of
the cost of implementing the comprehensive
plan for the upper Mississippi within areas
under the board's jurisdiction.
$10,000 the first year and $10,000 the second
year are for payment to the Leech Lake Band
of Chippewa Indians to implement the band's
portion of the comprehensive plan for the
upper Mississippi.
$264,000 the first year and $264,000 the
second year are for grants for up to 50
percent of the cost of implementation of
the Red River mediation agreement. The
commissioner shall submit a report to the
chairs of the legislative committees having
primary jurisdiction over environment and
natural resources policy and finance on the
accomplishments achieved with the grants
by January 15, 2015.
$1,636,000 the first year and $1,636,000
the second year are from the heritage
enhancement account in the game and
fish fund for only the purposes specified
in Minnesota Statutes, section 297A.94,
paragraph (e), clause (1).
$1,223,000 the first year and $1,223,000 the
second year are from the nongame wildlife
management account in the natural resources
fund for the purpose of nongame wildlife
management. Notwithstanding Minnesota
Statutes, section 290.431, $100,000 the first
year and $100,000 the second year may
be used for nongame wildlife information,
education, and promotion.

Subd. 4.Forest Management

37,207,000

37,207,000

	Appropriations by Fund
	General	24,850,000	24,850,000
	Natural Resources	11,093,000	11,093,000
	Game and Fish	1,264,000	1,264,000

$7,145,000 the first year and $7,145,000
the second year are for prevention,
presuppression, and suppression costs of
emergency firefighting and other costs
incurred under Minnesota Statutes, section
88.12. The amount necessary to pay for
presuppression and suppression costs during
the biennium is appropriated from the general
fund.
By January 15 of each year, the commissioner
of natural resources shall submit a report to
the chairs and ranking minority members
of the house and senate committees
and divisions having jurisdiction over
environment and natural resources finance,
identifying all firefighting costs incurred
and reimbursements received in the prior
fiscal year. These appropriations may
not be transferred. Any reimbursement
of firefighting expenditures made to the
commissioner from any source other than
federal mobilizations shall be deposited into
the general fund.
$11,093,000 the first year and $11,093,000
the second year are from the forest
management investment account in the
natural resources fund for only the purposes
specified in Minnesota Statutes, section
89.039, subdivision 2.
$1,000,000 the first year and $1,000,000
the second year are from the heritage
enhancement account in the game and fish
fund to advance ecological classification
systems (ECS) scientific management tools
for forest and invasive species management.
$580,000 the first year and $580,000 the
second year are for the Forest Resources
Council for implementation of the
Sustainable Forest Resources Act.
$250,000 the first year and $250,000 the
second year are for the FORIST system.

Subd. 5.Parks and Trails Management

67,502,000

67,502,000

	Appropriations by Fund
	General	19,780,000	19,780,000
	Natural Resources	45,463,000	45,463,000
	Game and Fish	2,259,000	2,259,000

$775,000 the first year and $1,075,000 the
second year are from the water recreation
account in the natural resources fund for
enhancing public water access facilities.
$5,731,000 the first year and $5,731,000 the
second year are from the natural resources
fund for state trail, park, and recreation area
operations. This appropriation is from the
revenue deposited in the natural resources
fund under Minnesota Statutes, section
297A.94, paragraph (e), clause (2).
$1,005,000 the first year and $1,005,000 the
second year are from the natural resources
fund for trail grants to local units of
government on land to be maintained for at
least 20 years for the purposes of the grants.
This appropriation is from the revenue
deposited in the natural resources fund
under Minnesota Statutes, section 297A.94,
paragraph (e), clause (4). Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
$8,424,000 the first year and $8,424,000
the second year are from the snowmobile
trails and enforcement account in the
natural resources fund for the snowmobile
grants-in-aid program. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
$1,460,000 the first year and $1,460,000 the
second year are from the natural resources
fund for the off-highway vehicle grants-in-aid
program. Of this amount, $1,210,000 each
year is from the all-terrain vehicle account;
$150,000 each year is from the off-highway
motorcycle account; and $100,000 each year
is from the off-road vehicle account. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.
$75,000 the first year and $75,000 the second
year are from the cross-country ski account
in the natural resources fund for grooming
and maintaining cross-country ski trails in
state parks, trails, and recreation areas.
$300,000 the first year from the water
recreation account in the natural resources
fund is for construction of restroom facilities
at the public water access for Crane Lake
on Handberg Road. This is a onetime
appropriation and is available until the
construction is completed.
The appropriation in Laws 2009, chapter
37, article 1, section 4, subdivision 5, from
the natural resources fund from the revenue
deposited under Minnesota Statutes, section
297A.94, paragraph (e), clause (4), for local
grants is available until June 30, 2014.

Subd. 6.Fish and Wildlife Management

61,176,000

61,176,000

	Appropriations by Fund
	Natural Resources	1,906,000	1,906,000
	Game and Fish	59,270,000	59,270,000

$8,167,000 the first year and $8,167,000
the second year are from the heritage
enhancement account in the game and fish
fund only for activities specified in Minnesota
Statutes, section 297A.94, paragraph (e),
clause (1). Notwithstanding Minnesota
Statutes, section 297A.94, five percent of
this appropriation may be used for expanding
hunter and angler recruitment and retention.
Notwithstanding Minnesota Statutes, section
84.943, $13,000 the first year and $13,000
the second year from the critical habitat
private sector matching account may be used
to publicize the critical habitat license plate
match program.

Subd. 7.Enforcement

35,228,000

35,228,000

	Appropriations by Fund
	General	3,975,000	3,975,000
	Natural Resources	9,640,000	9,640,000
	Game and Fish	21,513,000	21,513,000
	Remediation	100,000	100,000

$1,718,000 the first year and $1,718,000 the
second year are from the general fund for
enforcement efforts to prevent the spread of
aquatic invasive species.
$1,450,000 the first year and $1,450,000
the second year are from the heritage
enhancement account in the game and
fish fund for only the purposes specified
in Minnesota Statutes, section 297A.94,
paragraph (e), clause (1).
$250,000 the first year and $250,000 the
second year are for the conservation officer
pre-employment education program. Of this
amount, $30,000 each year is from the water
recreation account, $13,000 each year is from
the snowmobile account, and $20,000 each
year is from the all-terrain vehicle account
in the natural resources fund; and $187,000
each year is from the game and fish fund, of
which $17,000 each year is from the heritage
enhancement account.
$1,082,000 the first year and $1,082,000 the
second year are from the water recreation
account in the natural resources fund for
grants to counties for boat and water safety.
Any unencumbered balance does not cancel
at the end of the first year and is available for
the second year.
$315,000 the first year and $315,000 the
second year are from the snowmobile
trails and enforcement account in the
natural resources fund for grants to local
law enforcement agencies for snowmobile
enforcement activities. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
$250,000 the first year and $250,000 the
second year are from the all-terrain vehicle
account for grants to qualifying organizations
to assist in safety and environmental
education and monitoring trails on public
lands under Minnesota Statutes, section
84.9011. Grants issued under this paragraph:
(1) must be issued through a formal
agreement with the organization; and
(2) must not be used as a substitute for
traditional spending by the organization.
By December 15 each year, an organization
receiving a grant under this paragraph shall
report to the commissioner with details on
expenditures and outcomes from the grant.
Of this appropriation, $25,000 each year
is for administration of these grants. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.
$510,000 the first year and $510,000
the second year are from the natural
resources fund for grants to county law
enforcement agencies for off-highway
vehicle enforcement and public education
activities based on off-highway vehicle use
in the county. Of this amount, $498,000 each
year is from the all-terrain vehicle account;
$11,000 each year is from the off-highway
motorcycle account; and $1,000 each year
is from the off-road vehicle account. The
county enforcement agencies may use
money received under this appropriation
to make grants to other local enforcement
agencies within the county that have a high
concentration of off-highway vehicle use.
Of this appropriation, $25,000 each year
is for administration of these grants. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.
$500,000 the first year and $500,000 the
second year are from the game and fish
fund for grants to county law enforcement
agencies for invasive species enforcement.

Subd. 8.Operations Support

320,000

320,000

	Appropriations by Fund
	Natural Resources	320,000	320,000

$320,000 the first year and $320,000 the
second year are from the natural resources
fund for grants to be divided equally between
the city of St. Paul for the Como Park Zoo
and Conservatory and the city of Duluth
for the Duluth Zoo. This appropriation
is from the revenue deposited to the fund
under Minnesota Statutes, section 297A.94,
paragraph (e), clause (5).

Sec. 5. BOARD OF WATER AND SOIL RESOURCES

$

12,683,000

$

12,683,000

$3,423,000 the first year and $3,423,000 the
second year are for natural resources block
grants to local governments. Grants must be
matched with a combination of local cash or
in-kind contributions. The base grant portion
related to water planning must be matched
by an amount as specified by Minnesota
Statutes, section 103B.3369. The board may
reduce the amount of the natural resources
block grant to a county by an amount equal to
any reduction in the county's general services
allocation to a soil and water conservation
district from the county's previous year
allocation when the board determines that
the reduction was disproportionate.
$3,116,000 the first year and $3,116,000
the second year are for grants requested
by soil and water conservation districts for
general purposes, nonpoint engineering, and
implementation of the reinvest in Minnesota
reserve program. Upon approval of the
board, expenditures may be made from these
appropriations for supplies and services
benefiting soil and water conservation
districts. Any district requesting a grant
under this paragraph shall maintain a Web
page that publishes, at a minimum, its annual
report, annual audit, annual budget, and
meeting notices and minutes.
$1,560,000 the first year and $1,560,000
the second year are for grants to soil and
water conservation districts for cost-sharing
contracts for erosion control, water quality
management, and feedlot water quality
projects.
$386,000 the first year and $386,000 the
second year are for implementation and
oversight of the Wetland Conservation Act.
$166,000 the first year and $166,000 the
second year are to provide assistance to local
drainage management officials and for the
costs of the Drainage Work Group.
$100,000 the first year and $100,000 the
second year are for a grant to the Red
River Basin Commission for water quality
and floodplain management, including
administration of programs. If the
appropriation in either year is insufficient, the
appropriation in the other year is available
for it.
$120,000 the first year and $120,000
the second year are for grants to Area
II Minnesota River Basin Projects for
floodplain management.
$42,000 each year is to the Minnesota River
Board for expenses to measure and report the
results of projects in the 12 major watersheds
within the Minnesota River basin.
Notwithstanding Minnesota Statutes, section
103C.501, the board may shift cost-share
funds in this section and may adjust the
technical and administrative assistance
portion of the grant funds to leverage
federal or other nonstate funds or to address
high-priority needs identified in local water
management plans or comprehensive water
management plans.
$125,000 the first year and $125,000 the
second year are to implement internal control
policies and provide related oversight and
accountability for agency programs.
The appropriations for grants in this
section are available until expended. If an
appropriation for grants in either year is
insufficient, the appropriation in the other
year is available for it.

Sec. 6. METROPOLITAN COUNCIL

$

8,540,000

$

8,540,000

	Appropriations by Fund
		2014	2015
	General	2,870,000	2,870,000
	Natural Resources	5,670,000	5,670,000

$2,870,000 the first year and $2,870,000 the
second year are for metropolitan area regional
parks operation and maintenance according
to Minnesota Statutes, section 473.351.
$5,670,000 the first year and $5,670,000 the
second year are from the natural resources
fund for metropolitan area regional parks
and trails maintenance and operations. This
appropriation is from the revenue deposited
in the natural resources fund under Minnesota
Statutes, section 297A.94, paragraph (e),
clause (3).

Sec. 7. CONSERVATION CORPS MINNESOTA

$

945,000

$

945,000

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

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

Sec. 8. ZOOLOGICAL BOARD

$

5,585,000

$

5,585,000

	Appropriations by Fund
		2014	2015
	General	5,425,000	5,425,000
	Natural Resources	160,000	160,000

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

Sec. 9. SCIENCE MUSEUM OF MINNESOTA

$

1,079,000

$

1,079,000

    Sec. 10. Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended by
Laws 2010, First Special Session chapter 1, article 6, section 6, is amended to read:

Subd. 6.Transfers In

(a) The amounts appropriated from the
agency indirect costs account in the special
revenue fund are reduced by $328,000 in
fiscal year 2010 and $462,000 in fiscal year
2011, and those amounts must be transferred
to the general fund by June 30, 2011. The
appropriation reductions are onetime.
(b) The commissioner of management and
budget shall transfer $48,000,000 in fiscal
year 2011 from the closed landfill investment
fund in Minnesota Statutes, section 115B.421,
to the general fund. The commissioner shall
transfer $12,000,000 $10,000,000 on July 1
in each of the years, 2014, 2015, 2016, and
2017 $12,500,000 in each of the years 2015
and 2016, and $13,000,000 in 2017 from the
general fund to the closed landfill investment
fund. For each transfer to the closed landfill
investment fund, the commissioner shall
determine the total amount of interest and
other earnings that would have accrued to
the fund if the transfers to the general fund
under this paragraph had not been made and
add this amount to the transfer. The amounts
necessary for these transfers are appropriated
from the general fund in the fiscal years
specified for the transfers.

ARTICLE 2

ENVIRONMENT AND NATURAL RESOURCES STATUTORY CHANGES

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

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

    Sec. 3. Minnesota Statutes 2012, section 84.415, is amended by adding a subdivision
to read:
    Subd. 7. Existing road right-of-way; fee exemption. A utility license for crossing
public lands or public waters is exempt from all fees specified in this section and in rules
adopted under this section when the utility crossing is on an existing right-of-way of
a public road.

    Sec. 4. Minnesota Statutes 2012, section 84.63, is amended to read:
84.63 CONVEYANCE OF INTERESTS IN LANDS TO STATE AND
FEDERAL GOVERNMENTS.
(a) Notwithstanding any existing law to the contrary, the commissioner of natural
resources is hereby authorized on behalf of the state to convey to the United States
or to the state of Minnesota or any of its subdivisions, upon state-owned lands under
the administration of the commissioner of natural resources, permanent or temporary
easements for specified periods or otherwise for trails, highways, roads including
limitation of right of access from the lands to adjacent highways and roads, flowage for
development of fish and game resources, stream protection, flood control, and necessary
appurtenances thereto, such conveyances to be made upon such terms and conditions
including provision for reversion in the event of non-user as the commissioner of natural
resources may determine.
(b) In addition to the fee for the market value of the easement, the commissioner of
natural resources shall assess the applicant the following fees:
(1) an application fee of $2,000 to cover reasonable costs for reviewing the
application and preparing the easement; and
(2) a monitoring fee to cover the projected reasonable costs for monitoring the
construction of the improvement for which the easement was conveyed and preparing
special terms and conditions for the easement. The commissioner must give the applicant
an estimate of the monitoring fee before the applicant submits the fee.
(c) The applicant shall pay these fees to the commissioner of natural resources.
The commissioner shall not issue the easement until the applicant has paid in full the
application fee, the monitoring fee, and the market value payment for the easement.
(d) Upon completion of construction of the improvement for which the easement
was conveyed, the commissioner shall refund the unobligated balance from the monitoring
fee revenue. The commissioner shall not return the application fee, even if the application
is withdrawn or denied.
(e) Money received under paragraph (b) must be deposited in the land management
account in the natural resources fund and is appropriated to the commissioner of natural
resources to cover the reasonable costs incurred for issuing and monitoring easements.
(f) A county or joint county regional railroad authority is exempt from all fees
specified under this section for trail easements on state-owned land.

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

    Sec. 6. Minnesota Statutes 2012, section 84.82, is amended by adding a subdivision to
read:
    Subd. 2a. Nontrail use registration. A snowmobile may be registered for nontrail
use. A snowmobile registered under this subdivision may not be operated on a state or
grant-in-aid snowmobile trail. The fee for a nontrail use registration is $45 for three years.
A nontrail use registration is not transferable. In addition to other penalties prescribed by
law, the penalty for violation of this subdivision is immediate revocation of the nontrail
use registration.

    Sec. 7. Minnesota Statutes 2012, section 84.82, subdivision 3, is amended to read:
    Subd. 3. Fees for registration. (a) The fee for registration of each snowmobile,
other than those used for an agricultural purpose, as defined in section 84.92, subdivision
1c, or those registered by a dealer or manufacturer pursuant to paragraph (b) or (c), or
those registered under subdivision 2a shall be as follows: $75 for three years and $10
for a duplicate or transfer.
(b) The total registration fee for all snowmobiles owned by a dealer and operated for
demonstration or testing purposes shall be $50 per year.
(c) The total registration fee for all snowmobiles owned by a manufacturer and
operated for research, testing, experimentation, or demonstration purposes shall be $150
per year. Dealer and manufacturer registrations are not transferable.
(d) The onetime fee for registration of an exempt snowmobile under subdivision
6a is $6.

    Sec. 8. Minnesota Statutes 2012, section 84.8205, subdivision 1, is amended to read:
    Subdivision 1. Sticker required; fee. (a) A snowmobile that is not registered
in the state under section 84.82, subdivision 3, paragraph (a), or that is registered by a
manufacturer or dealer under section 84.82, subdivision 3, paragraph (b) or (c), may
not be operated on a state or grant-in-aid snowmobile trail unless a snowmobile state
trail sticker is affixed to the snowmobile.
(b) The commissioner of natural resources shall issue a sticker upon application
and payment of a fee. The fee is:
(1) $35 for a one-year snowmobile state trail sticker purchased by an individual; and
(2) $15 for a one-year snowmobile state trail sticker purchased by a dealer or
manufacturer.
(c) In addition to other penalties prescribed by law, an individual in violation of
this subdivision must purchase an annual state trail sticker for a fee of $70. The sticker
is valid from November 1 through June 30. Fees collected under this section, except for
the issuing fee for licensing agents, shall be deposited in the state treasury and credited
to the snowmobile trails and enforcement account in the natural resources fund and,
except for the electronic licensing system commission established by the commissioner
under section 84.027, subdivision 15, must be used for grants-in-aid, trail maintenance,
grooming, and easement acquisition.
    (d) A state trail sticker is not required under this section for:
    (1) a snowmobile that is owned and used by the United States, an Indian tribal
government, another state, or a political subdivision thereof that is exempt from
registration under section 84.82, subdivision 6;
    (2) a collector snowmobile that is operated as provided in a special permit issued for
the collector snowmobile under section 84.82, subdivision 7a;
    (3) a person operating a snowmobile only on the portion of a trail that is owned by
the person or the person's spouse, child, or parent; or
    (4) a snowmobile while being used to groom a state or grant-in-aid trail.

    Sec. 9. Minnesota Statutes 2012, section 85.015, subdivision 13, is amended to read:
    Subd. 13. Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton,
Koochiching, and Itasca Counties. (a)(1) The Taconite Trail shall originate at Ely in St.
Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to
McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in
Itasca County and there terminate;
(2) The C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County
and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand
Marais in Cook County, thence northeasterly to the international boundary in the vicinity
of the north shore of Lake Superior, and there terminate;
(3) The Grand Marais to International Falls Trail shall originate in Grand Marais
in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area,
to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to
Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St.
Louis County to International Falls in Koochiching County, and there terminate;
(4) The Matthew Lourey Trail shall originate in Duluth in St. Louis County and
extend southerly to St. Croix Chengwatana State Forest in Pine County.
(b) The trails shall be developed primarily for riding and hiking.
(c) In addition to the authority granted in subdivision 1, lands and interests in lands
for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring
any land or interest in land by eminent domain the commissioner of administration shall
obtain the approval of the governor. The governor shall consult with the Legislative
Advisory Commission before granting approval. Recommendations of the Legislative
Advisory Commission shall be advisory only. Failure or refusal of the commission to
make a recommendation shall be deemed a negative recommendation.

    Sec. 10. Minnesota Statutes 2012, section 85.052, subdivision 6, is amended to read:
    Subd. 6. State park reservation system. (a) The commissioner may, by written
order, develop reasonable reservation policies for campsites and other lodging. These
policies are exempt from rulemaking provisions under chapter 14 and section 14.386
does not apply.
(b) The revenue collected from the state park reservation fee established under
subdivision 5, including interest earned, shall be deposited in the state park account in the
natural resources fund and is annually appropriated to the commissioner for the cost of
the state park reservation system.
EFFECTIVE DATE.This section is effective retroactively from March 1, 2012.

    Sec. 11. Minnesota Statutes 2012, section 85.053, subdivision 8, is amended to read:
    Subd. 8. Military personnel on leave; exemption. (a) A one-day permit, under
subdivision 4, shall be issued without a fee for a motor vehicle being used by a person
who is serving in active military service in any branch or unit of the United States armed
forces and who is stationed outside Minnesota, during the period of active service and for
90 days immediately thereafter, if the person presents the person's current military orders
to the park attendant on duty or other designee of the commissioner.
    (b) For purposes of this section, "active service" has the meaning given under section
190.05 , subdivision 5c, when performed outside Minnesota.
(c) A permit is not required for a motor vehicle being used by military personnel or
their dependents who have in their possession the annual pass for United States military
and their dependents issued by the federal government for access to federal recreation sites.

    Sec. 12. Minnesota Statutes 2012, section 85.054, is amended by adding a subdivision
to read:
    Subd. 18. La Salle Lake State Recreation Area. A state park permit is not
required and a fee may not be charged for motor vehicle entry, use, or parking in La Salle
Lake State Recreation Area unless the occupants of the vehicle enter, use, or park in a
developed campground or day-use area.

    Sec. 13. Minnesota Statutes 2012, section 85.055, subdivision 1, is amended to read:
    Subdivision 1. Fees. The fee for state park permits for:
(1) an annual use of state parks is $25;
(2) a second or subsequent vehicle state park permit is $18;
(3) a state park permit valid for one day is $5;
(4) a daily vehicle state park permit for groups is $3;
(5) an annual permit for motorcycles is $20;
(6) an employee's state park permit is without charge; and
(7) a state park permit for disabled persons with disabilities under section 85.053,
subdivision 7 , clauses (1) and (2) to (3), is $12.
The fees specified in this subdivision include any sales tax required by state law.

    Sec. 14. Minnesota Statutes 2012, section 85.055, subdivision 2, is amended to read:
    Subd. 2. Fee deposit and appropriation. The fees collected under this section shall
be deposited in the natural resources fund and credited to the state parks account. Money
in the account, except for the electronic licensing system commission established by the
commissioner under section 84.027, subdivision 15, and the state park reservation system
fee established by the commissioner under section 85.052, subdivisions 5 and 6, is available
for appropriation to the commissioner to operate and maintain the state park system.

    Sec. 15. Minnesota Statutes 2012, section 85.42, is amended to read:
85.42 USER FEE; VALIDITY.
(a) The fee for an annual cross-country ski pass is $19 for an individual age 16 and
over. The fee for a three-year pass is $54 for an individual age 16 and over. This fee
shall be collected at the time the pass is purchased. Three-year passes are valid for three
years beginning the previous July 1. Annual passes are valid for one year beginning
the previous July 1.
(b) The cost for a daily cross-country skier pass is $5 for an individual age 16 and
over. This fee shall be collected at the time the pass is purchased. The daily pass is valid
only for the date designated on the pass form.
(c) A pass must be signed by the skier across the front of the pass to be valid and
becomes nontransferable on signing.
(d) The commissioner and agents shall issue a duplicate pass to a person whose pass
is lost or destroyed, using the process established under section 97A.405, subdivision 3,
and rules adopted thereunder. The fee for a duplicate cross-country ski pass is $2.

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

    Sec. 17. Minnesota Statutes 2012, section 89.41, is amended to read:
89.41 EDUCATIONAL UNITS MAY ESTABLISH AND MAINTAIN SCHOOL
FORESTS.
    Subdivision 1. Establishment and maintenance of school forests. Any school
district in the state, however organized, the University of Minnesota, or any branch
thereof, any state university, community college, or other public educational institution
or agency of the state, all herein referred to as agencies, may establish and maintain
school forests as herein provided according to this section, subject to the approval of the
commissioner of natural resources. Any such agency may use for the purpose of such a
forest any land belonging to it, or may acquire land therefor by gift or with contributed
funds. For the purpose of a school forest, an agency may use land the agency owns or uses
under an agreement or may acquire land by gift or with contributed funds.
    Subd. 2. Conveyance of tax-forfeited land for school forest use. For the purposes
of such forest school forests established under this section, any tax-forfeited lands may be
sold by the county board to any such an agency or may be conveyed by the commissioner of
revenue to any such an agency in like manner as provided for the sale or conveyance of such
tax-forfeited lands to governmental subdivisions under section 282.01 and amendments
thereof. A conveyance under this subdivision is made without monetary compensation or
consideration for the conveyance, but the conveyance is subject to the conditional use and
reversion provisions under section 282.01, subdivisions 1c and 1d, paragraph (e).
    Subd. 3. Monitoring and reporting. The commissioner shall annually monitor
tax-forfeited lands conveyed according to subdivision 2 to determine whether the
lands continue to be used as school forests. The commissioner shall submit an annual
monitoring report to the commissioner of revenue that identifies any lands no longer
used as school forests.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 18. Minnesota Statutes 2012, section 90.01, subdivision 4, is amended to read:
    Subd. 4. Scaler. "Scaler" means a qualified bonded person designated by the
commissioner to measure timber and cut forest products.

    Sec. 19. Minnesota Statutes 2012, section 90.01, subdivision 5, is amended to read:
    Subd. 5. State appraiser. "State appraiser" means an employee of the department
designated by the commissioner to appraise state lands, which includes, but is not limited
to, timber and other forest resource products, for volume, quality, and value.

    Sec. 20. Minnesota Statutes 2012, section 90.01, subdivision 6, is amended to read:
    Subd. 6. Timber. "Timber" means trees, shrubs, or woody plants, that will produce
forest products of value whether standing or down, and including but not limited to logs,
sawlogs, posts, poles, bolts, pulpwood, cordwood, fuelwood, woody biomass, lumber,
and woody decorative material.

    Sec. 21. Minnesota Statutes 2012, section 90.01, subdivision 8, is amended to read:
    Subd. 8. Permit holder. "Permit holder" means the person holding who is the
signatory of a permit to cut timber on state lands.

    Sec. 22. Minnesota Statutes 2012, section 90.01, subdivision 11, is amended to read:
    Subd. 11. Effective permit. "Effective permit" means a permit for which the
commissioner has on file full or partial surety security as required by section 90.161, or
90.162, 90.163, or 90.173 or, in the case of permits issued according to section 90.191 or
90.195 , the commissioner has received a down payment equal to the full appraised value.

    Sec. 23. Minnesota Statutes 2012, section 90.031, subdivision 4, is amended to read:
    Subd. 4. Timber rules. The Executive Council may formulate and establish, from
time to time, rules it deems advisable for the transaction of timber business of the state,
including approval of the sale of timber on any tract in a lot exceeding 6,000 12,000 cords
in volume when the sale is in the best interests of the state, and may abrogate, modify,
or suspend rules at its pleasure.

    Sec. 24. Minnesota Statutes 2012, section 90.041, subdivision 2, is amended to read:
    Subd. 2. Trespass on state lands. The commissioner may compromise and settle,
with the approval of notification to the attorney general, upon terms the commissioner
deems just, any claim of the state for casual and involuntary trespass upon state lands or
timber; provided that no claim shall be settled for less than the full value of all timber
or other materials taken in casual trespass or the full amount of all actual damage or
loss suffered by the state as a result. Upon request, the commissioner shall advise the
Executive Council of any information acquired by the commissioner concerning any
trespass on state lands, giving all details and names of witnesses and all compromises and
settlements made under this subdivision.

    Sec. 25. Minnesota Statutes 2012, section 90.041, subdivision 5, is amended to read:
    Subd. 5. Forest improvement contracts. The commissioner may contract as part
of the timber sale with the purchaser of state timber at either informal or auction sale
for the following forest improvement work to be done on the land included within the
sale area:. Forest improvement work may include activities relating to preparation of
the site for seeding or planting of seedlings or trees, seeding or planting of seedlings or
trees, and other activities relating related to forest regeneration or deemed necessary by
the commissioner to accomplish forest management objectives, including those related
to water quality protection, trail development, and wildlife habitat enhancement. A
contract issued under this subdivision is not subject to the competitive bidding provisions
of chapter 16C and is exempt from the contract approval provisions of section 16C.05,
subdivision 2 . The bid value received in the sale of the timber and the contract bid
cost of the improvement work may be combined and the total value may be considered
by the commissioner in awarding forest improvement contracts under this section.
The commissioner may refuse to accept any and all bids received and cancel a forest
improvement contract sale for good and sufficient reasons.

    Sec. 26. Minnesota Statutes 2012, section 90.041, subdivision 6, is amended to read:
    Subd. 6. Sale of damaged timber. The commissioner may sell at public auction
timber that has been damaged by fire, windstorm, flood, insect, disease, or other natural
cause on notice that the commissioner considers reasonable when there is a high risk that
the salvage value of the timber would be lost.

    Sec. 27. Minnesota Statutes 2012, section 90.041, subdivision 9, is amended to read:
    Subd. 9. Reoffering unsold timber. To maintain and enhance forest ecosystems on
state forest lands, The commissioner may reoffer timber tracts remaining unsold under the
provisions of section 90.101 below appraised value at public auction with the required
30-day notice under section 90.101, subdivision 2.

    Sec. 28. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
to read:
    Subd. 10. Fees. (a) The commissioner may establish a fee schedule that covers the
commissioner's cost of issuing, administering, and processing various permits, permit
modifications, transfers, assignments, amendments, and other transactions necessary to the
administration of activities under this chapter.
(b) A fee established under this subdivision is not subject to the rulemaking
provisions of chapter 14 and section 14.386 does not apply. The commissioner may
establish fees under this subdivision notwithstanding section 16A.1283.

    Sec. 29. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision
to read:
    Subd. 11. Debarment. The commissioner may debar a permit holder if the holder
is convicted in Minnesota at the gross misdemeanor or felony level of criminal willful
trespass, theft, fraud, or antitrust violation involving state, federal, county, or privately
owned timber in Minnesota or convicted in any other state involving similar offenses and
penalties for timber owned in that state. The commissioner shall cancel and repossess the
permit directly involved in the prosecution of the crime. The commissioner shall cancel
and repossess all other state timber permits held by the permit holder after taking from
all security deposits money to which the state is entitled. The commissioner shall return
the remainder of the security deposits, if any, to the permit holder. The debarred permit
holder is prohibited from bidding, possessing, or being employed on any state timber
permit during the period of debarment. The period of debarment is not less than one year
or greater than three years. The duration of the debarment is based on the severity of the
violation, past history of compliance with timber permits, and the amount of loss incurred
by the state arising from violations of timber permits.

    Sec. 30. Minnesota Statutes 2012, section 90.045, is amended to read:
90.045 APPRAISAL STANDARDS.
By July 1, 1983, the commissioner shall establish specific timber appraisal standards
according to which all timber appraisals will be conducted under this chapter. The
standards shall include a specification of the maximum allowable appraisal sampling error,
and including the procedures for tree defect allowance, tract area estimation, product
volume estimation, and product value determination. The timber appraisal standards shall
be included in each edition of the timber sales manual published by the commissioner. In
addition to the duties pursuant to section 90.061, every state appraiser shall work within
the guidelines of the timber appraisal standards. The standards shall not be subject to
the rulemaking provisions of chapter 14.

    Sec. 31. Minnesota Statutes 2012, section 90.061, subdivision 8, is amended to read:
    Subd. 8. Appraiser authority; form of documents. State appraisers are
empowered, with the consent of the commissioner, to perform any scaling, and generally
to supervise the cutting and removal of timber and forest products on or from state lands
so far as may be reasonably necessary to insure compliance with the terms of the permits
or other contracts governing the same and protect the state from loss.
The form of appraisal reports, records, and notes to be kept by state appraisers
shall be as the commissioner prescribes.

    Sec. 32. Minnesota Statutes 2012, section 90.101, subdivision 1, is amended to read:
    Subdivision 1. Sale requirements. The commissioner may sell the timber on any
tract of state land and may determine the number of sections or fractional sections of land
to be included in the permit area covered by any one permit issued to the purchaser of
timber on state lands, or in any one contract or other instrument relating thereto. No
timber shall be sold, except (1) to the highest responsible bidder at public auction, or
(2) if unsold at public auction, the commissioner may offer the timber for private sale
for a period of no more than six months one year after the public auction to any person
responsible bidder who pays the appraised value for the timber. The minimum price shall
be the appraised value as fixed by the report of the state appraiser. Sales may include tracts
in more than one contiguous county or forestry administrative area and shall be held either
in the county or forestry administrative area in which the tract is located or in an adjacent
county or forestry administrative area that is nearest the tract offered for sale or that is
most accessible to potential bidders. In adjoining counties or forestry administrative areas,
sales may not be held less than two hours apart.

    Sec. 33. Minnesota Statutes 2012, section 90.121, is amended to read:
90.121 INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000
CORDS.
(a) The commissioner may sell the timber on any tract of state land in lots not
exceeding 3,000 cords in volume, in the same manner as timber sold at public auction under
section 90.101, and related laws, subject to the following special exceptions and limitations:
(1) the commissioner shall offer all tracts authorized for sale by this section
separately from the sale of tracts of state timber made pursuant to section 90.101;
(2) no bidder may be awarded more than 25 percent of the total tracts offered at the
first round of bidding unless fewer than four tracts are offered, in which case not more than
one tract shall be awarded to one bidder. Any tract not sold at public auction may be offered
for private sale as authorized by section 90.101, subdivision 1, 30 days after the auction to
persons responsible bidders eligible under this section at the appraised value; and
(3) no sale may be made to a person responsible bidder having more than 30
employees. For the purposes of this clause, "employee" means an individual working in
the timber or wood products industry for salary or wages on a full-time or part-time basis.
(b) The auction sale procedure set forth in this section constitutes an additional
alternative timber sale procedure available to the commissioner and is not intended to
replace other authority possessed by the commissioner to sell timber in lots of 3,000
cords or less.
(c) Another bidder or the commissioner may request that the number of employees a
bidder has pursuant to paragraph (a), clause (3), be confirmed by signed affidavit if there is
evidence that the bidder may be ineligible due to exceeding the employee threshold. The
commissioner shall request information from the commissioners of labor and industry and
employment and economic development including the premiums paid by the bidder in
question for workers' compensation insurance coverage for all employees of the bidder.
The commissioner shall review the information submitted by the commissioners of labor
and industry and employment and economic development and make a determination based
on that information as to whether the bidder is eligible. A bidder is considered eligible and
may participate in intermediate auctions until determined ineligible under this paragraph.

    Sec. 34. Minnesota Statutes 2012, section 90.145, is amended to read:
90.145 PURCHASER QUALIFICATIONS AND, REGISTRATION, AND
REQUIREMENTS.
    Subdivision 1. Purchaser qualifications requirements. (a) In addition to any other
requirements imposed by this chapter, the purchaser of a state timber permit issued under
section 90.151 must meet the requirements in paragraphs (b) to (d) (e).
(b) The purchaser and or the purchaser's agents, employees, subcontractors, and
assigns conducting logging operations on the timber permit must comply with general
industry safety standards for logging adopted by the commissioner of labor and industry
under chapter 182. The commissioner of natural resources shall may require a purchaser
to provide proof of compliance with the general industry safety standards.
(c) The purchaser and or the purchaser's agents, subcontractors, and assigns
conducting logging operations on the timber permit must comply with the mandatory
insurance requirements of chapter 176. The commissioner shall may require a purchaser
to provide a copy of the proof of insurance required by section 176.130 before the start of
harvesting operations on any permit.
(d) Before the start of harvesting operations on any permit, the purchaser must certify
that a foreperson or other designated employee who has a current certificate of completion,
which includes instruction in site-level forest management guidelines or best management
practices, from the Minnesota Logger Education Program (MLEP), the Wisconsin Forest
Industry Safety and Training Alliance (FISTA), or any similar continuous education
program acceptable to the commissioner, is supervising active logging operations.
(e) The purchaser and the purchaser's agents, employees, subcontractors, and assigns
who will be involved with logging or scaling state timber must be in compliance with
this chapter.
    Subd. 2. Purchaser preregistration registration. To facilitate the sale of permits
issued under section 90.151, the commissioner may establish a purchaser preregistration
registration system to verify the qualifications of a person as a responsible bidder to
purchase a timber permit. Any system implemented by the commissioner shall be limited
in scope to only that information that is required for the efficient administration of the
purchaser qualification provisions requirements of this chapter and shall conform with the
requirements of chapter 13. The registration system established under this subdivision is
not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.

    Sec. 35. Minnesota Statutes 2012, section 90.151, subdivision 1, is amended to read:
    Subdivision 1. Issuance; expiration. (a) Following receipt of the down payment
for state timber required under section 90.14 or 90.191, the commissioner shall issue a
numbered permit to the purchaser, in a form approved by the attorney general, by the
terms of which the purchaser shall be authorized to enter upon the land, and to cut and
remove the timber therein described as designated for cutting in the report of the state
appraiser, according to the provisions of this chapter. The permit shall be correctly
dated and executed by the commissioner and signed by the purchaser. If a permit is not
signed by the purchaser within 60 45 days from the date of purchase, the permit cancels
and the down payment for timber required under section 90.14 forfeits to the state. The
commissioner may grant an additional period for the purchaser to sign the permit, not to
exceed five ten business days, provided the purchaser pays a $125 $200 penalty fee.
    (b) The permit shall expire no later than five years after the date of sale as the
commissioner shall specify or as specified under section 90.191, and the timber shall
be cut and removed within the time specified therein. All cut timber, equipment, and
buildings not removed from the land within 90 days after expiration of the permit shall
become the property of the state. If additional time is needed, the permit holder must
request, prior to the expiration date, and may be granted, for good and sufficient reasons,
up to 90 additional days for the completion of skidding, hauling, and removing all
equipment and buildings. All cut timber, equipment, and buildings not removed from the
land after expiration of the permit becomes the property of the state.
    (c) The commissioner may grant an additional period of time not to exceed 120 240
days for the removal of cut timber, equipment, and buildings upon receipt of such a written
request by the permit holder for good and sufficient reasons. The commissioner may grant
a second period of time not to exceed 120 days for the removal of cut timber, equipment,
and buildings upon receipt of a request by the permit holder for hardship reasons only.
The permit holder may combine in the written request under this paragraph the request
for additional time under paragraph (b).

    Sec. 36. Minnesota Statutes 2012, section 90.151, subdivision 2, is amended to read:
    Subd. 2. Permit requirements. The permit shall state the amount of timber
estimated for cutting on the land, the estimated value thereof, and the price at which it is
sold in units of per thousand feet, per cord, per piece, per ton, or by whatever description
sold, and shall specify that all landings of cut products shall be legibly marked with the
assigned permit number. The permit shall provide for the continuous identification
and control of the cut timber from the time of cutting until delivery to the consumer.
The permit shall provide that failure to continuously identify the timber as specified in
the permit constitutes trespass.

    Sec. 37. Minnesota Statutes 2012, section 90.151, subdivision 3, is amended to read:
    Subd. 3. Security provisions. The permit shall contain such provisions as may be
necessary to secure to the state the title of all timber cut thereunder wherever found until
full payment therefor and until all provisions of the permit have been fully complied
with. The permit shall provide that from the date the same becomes effective cutting
commences until the expiration thereof of the permit, including all extensions, the
purchaser and successors in interest shall be liable to the state for the full permit price of
all timber covered thereby, notwithstanding any subsequent damage or injury thereto or
trespass thereon or theft thereof, and without prejudice to the right of the state to pursue
such timber and recover the value thereof anywhere prior to the payment therefor in full to
the state. If an effective permit is forfeited prior to any cutting activity, the purchaser is
liable to the state for a sum equal to the down payment and bid guarantee. Upon recovery
from any person other than the permit holder, the permit holder shall be deemed released
to the extent of the net amount, after deducting all expenses of collecting same, recovered
by the state from such other person.

    Sec. 38. Minnesota Statutes 2012, section 90.151, subdivision 4, is amended to read:
    Subd. 4. Permit terms. Once a permit becomes effective and cutting commences,
the permit holder is liable to the state for the permit price for all timber required to be cut,
including timber not cut. The permit shall provide that all timber sold or designated for
cutting shall be cut without in such a manner so as not to cause damage to other timber;
that the permit holder shall remove all timber authorized and designated to be cut under
the permit; that timber sold by board measure identified in the permit, but later determined
by the commissioner not to be convertible into board the permit's measure, shall be paid
for by the piece or cord or other unit of measure according to the size, species, or value, as
may be determined by the commissioner; and that all timber products, except as specified
by the commissioner, shall be scaled and the final settlement for the timber cut shall be
made on this scale; and that the permit holder shall pay to the state the permit price for
all timber authorized to be cut, including timber not cut.

    Sec. 39. Minnesota Statutes 2012, section 90.151, subdivision 6, is amended to read:
    Subd. 6. Notice and approval required. The permit shall provide that the permit
holder shall not start cutting any state timber nor clear building sites landings nor logging
roads until the commissioner has been notified and has given prior approval to such
cutting operations. Approval shall not be granted until the permit holder has completed
a presale conference with the state appraiser designated to supervise the cutting. The
permit holder shall also give prior notice whenever permit operations are to be temporarily
halted, whenever permit operations are to be resumed, and when permit operations are to
be completed.

    Sec. 40. Minnesota Statutes 2012, section 90.151, subdivision 7, is amended to read:
    Subd. 7. Liability for timber cut in trespass. The permit shall provide that the
permit holder shall pay the permit price value for any timber sold which is negligently
destroyed or damaged by the permit holder in cutting or removing other timber sold. If the
permit holder shall cut or remove or negligently destroy or damage any timber upon the
land described, not sold under the permit, except such timber as it may be necessary to cut
and remove in the construction of necessary logging roads and landings approved as to
location and route by the commissioner, such timber shall be deemed to have been cut in
trespass. The permit holder shall be liable for any such timber and recourse may be had
upon the bond security deposit.

    Sec. 41. Minnesota Statutes 2012, section 90.151, subdivision 8, is amended to read:
    Subd. 8. Suspension; cancellation. The permit shall provide that the commissioner
shall have the power to order suspension of all operations under the permit when in the
commissioner's judgment the conditions thereof have not been complied with and any
timber cut or removed during such suspension shall be deemed to have been cut in trespass;
that the commissioner may cancel the permit at any time when in the commissioner's
judgment the conditions thereof have not been complied with due to a breach of the permit
conditions and such cancellation shall constitute repossession of the timber by the state;
that the permit holder shall remove equipment and buildings from such land within 90 days
after such cancellation; that, if the purchaser at any time fails to pay any obligations to the
state under any other permits, any or all permits may be canceled; and that any timber cut
or removed in violation of the terms of the permit or of any law shall constitute trespass.

    Sec. 42. Minnesota Statutes 2012, section 90.151, subdivision 9, is amended to read:
    Subd. 9. Slashings disposal. The permit shall provide that the permit holder shall
burn or otherwise dispose of or treat all slashings or other refuse resulting from cutting
operations, as specified in the permit, in the manner now or hereafter provided by law.

    Sec. 43. Minnesota Statutes 2012, section 90.161, is amended to read:
90.161 SURETY BONDS FOR AUCTION SECURITY DEPOSITS
REQUIRED FOR EFFECTIVE TIMBER PERMITS.
    Subdivision 1. Bond Security deposit required. (a) Except as otherwise provided
by law, the purchaser of any state timber, before any timber permit becomes effective for
any purpose, shall give a good and valid bond security in the form of cash; a certified
check; a cashier's check; a postal, bank, or express money order; a corporate surety bond;
or an irrevocable bank letter of credit to the state of Minnesota equal to the value of all
timber covered or to be covered by the permit, as shown by the sale price bid and the
appraisal report as to quantity, less the amount of any payments pursuant to sections
section 90.14 and 90.163.
(b) The bond security deposit shall be conditioned upon the faithful performance
by the purchaser and successors in interest of all terms and conditions of the permit and
all requirements of law in respect to timber sales. The bond security deposit shall be
approved in writing by the commissioner and filed for record in the commissioner's office.
(c) In the alternative to cash and bond requirements, but upon the same conditions,
A purchaser may post bond for 100 percent of the purchase price and request refund of the
amount of any payments pursuant to sections section 90.14 and 90.163. The commissioner
may credit the refund to any other permit held by the same permit holder if the permit is
delinquent as provided in section 90.181, subdivision 2, or may credit the refund to any
other permit to which the permit holder requests that it be credited.
(d) In the event of a default, the commissioner may take from the deposit the sum of
money to which the state is entitled. The commissioner shall return the remainder of the
deposit, if any, to the person making the deposit. When cash is deposited as security, it
shall be applied to the amount due when a statement is prepared and transmitted to the
permit holder according to section 90.181. Any balance due to the state shall be shown on
the statement and shall be paid as provided in section 90.181. Any amount of the deposit
in excess of the amount determined to be due according to section 90.181 shall be returned
to the permit holder when a final statement is transmitted under section 90.181. All or
part of a cash deposit may be withheld from application to an amount due on a nonfinal
statement if it appears that the total amount due on the permit will exceed the bid price.
(e) If an irrevocable bank letter of credit is provided as security under paragraph
(a), at the written request of the permittee, the commissioner shall annually allow the
amount of the bank letter of credit to be reduced by an amount proportionate to the value
of timber that has been harvested and for which the state has received payment under the
timber permit. The remaining amount of the bank letter of credit after a reduction under
this paragraph must not be less than the value of the timber remaining to be harvested
under the timber permit.
(f) If cash; a certified check; a cashier's check; a personal check; or a postal, bank, or
express money order is provided as security under paragraph (a) and no cutting of state
timber has taken place on the permit, the commissioner may credit the security provided,
less any deposit required under section 90.14, to any other permit to which the permit
holder requests in writing that it be credited.
    Subd. 2. Failure to bond provide security deposit. If bond the security deposit is
not furnished, no harvesting may occur and the down payment for timber 15 percent of the
permit's purchase price shall forfeit to the state when the permit expires.
    Subd. 3. Subrogation. In case of default When security is provided by surety
bond and the permit holder defaults in payment by the permit holder, the surety upon the
bond shall make payment in full to the state of all sums of money due under such permit;
and thereupon such surety shall be deemed immediately subrogated to all the rights of
the state in the timber so paid for; and such subrogated party may pursue the timber and
recover therefor, or have any other appropriate relief in relation thereto which the state
might or could have had if such surety had not made such payment. No assignment or
other writing on the part of the state shall be necessary to make such subrogation effective,
but the certificate signed by and bearing the official seal of the commissioner, showing the
amount of such timber, the lands from which it was cut or upon which it stood, and the
amount paid therefor, shall be prima facie evidence of such facts.
    Subd. 4. Change of security. Prior to any harvest cutting activity, or activities
incidental to the preparation for harvest, a purchaser having posted a bond security deposit
for 100 percent of the purchase price of a sale may request the release of the bond security
and the commissioner shall grant the release upon cash payment to the commissioner of
15 percent of the appraised value of the sale, plus eight percent interest on the appraised
value of the sale from the date of purchase to the date of release while retaining, or upon
repayment of, the permit's down payment and bid guarantee deposit requirement.
    Subd. 5. Return of security. Any security required under this section shall be
returned to the purchaser within 60 days after the final scale.

    Sec. 44. Minnesota Statutes 2012, section 90.162, is amended to read:
90.162 ALTERNATIVE TO BOND OR DEPOSIT REQUIREMENTS
SECURING TIMBER PERMITS WITH CUTTING BLOCKS.
In lieu of the bond or cash security deposit equal to the value of all timber covered
by the permit required by section 90.161 or 90.173, a purchaser of state timber may elect
in writing on a form prescribed by the attorney general to give good and valid surety to the
state of Minnesota equal to the purchase price for any designated cutting block identified
on the permit before the date the purchaser enters upon the land to begin harvesting the
timber on the designated cutting block.

    Sec. 45. [90.164] TIMBER PERMIT DEVELOPMENT OPTION.
With the completion of the presale conference requirement under section 90.151,
subdivision 6, a permit holder may access the permit area in advance of the permit being
fully secured as required by section 90.161, for the express purpose of clearing approved
landings and logging roads. No cutting of state timber except that incidental to the clearing
of approved landings and logging roads is allowed under this section.

    Sec. 46. Minnesota Statutes 2012, section 90.171, is amended to read:
90.171 ASSIGNMENT OF AUCTION TIMBER PERMITS.
Any permit sold at public auction may be assigned upon written approval of the
commissioner. The assignment of any permit shall be signed and acknowledged by the
permit holder. The commissioner shall not approve any assignment until the assignee has
been determined to meet the qualifications of a responsible bidder and has given to the state
a bond security deposit which shall be substantially in the form of, and shall be deemed
of the same effect as, the bond security deposit required of the original purchaser. The
commissioner may accept the an agreement of the assignee and any corporate surety upon
such an original bond, substituting the assignee in the place of such the original purchaser
and continuing such the original bond in full force and effect, as to the assignee. Thereupon
but not otherwise the permit holder making the assignment shall be released from all
liability arising or accruing from actions taken after the assignment became effective.

    Sec. 47. Minnesota Statutes 2012, section 90.181, subdivision 2, is amended to read:
    Subd. 2. Deferred payments. (a) If the amount of the statement is not paid within
30 days of the date thereof, it shall bear interest at the rate determined pursuant to section
16A.124 , except that the purchaser shall not be required to pay interest that totals $1 or
less. If the amount is not paid within 60 days, the commissioner shall place the account in
the hands of the commissioner of revenue according to chapter 16D, who shall proceed to
collect the same. When deemed in the best interests of the state, the commissioner shall
take possession of the timber for which an amount is due wherever it may be found and
sell the same informally or at public auction after giving reasonable notice.
(b) The proceeds of the sale shall be applied, first, to the payment of the expenses
of seizure and sale; and, second, to the payment of the amount due for the timber, with
interest; and the surplus, if any, shall belong to the state; and, in case a sufficient amount is
not realized to pay these amounts in full, the balance shall be collected by the attorney
general. Neither payment of the amount, nor the recovery of judgment therefor, nor
satisfaction of the judgment, nor the seizure and sale of timber, shall release the sureties
on any bond security deposit given pursuant to this chapter, or preclude the state from
afterwards claiming that the timber was cut or removed contrary to law and recovering
damages for the trespass thereby committed, or from prosecuting the offender criminally.

    Sec. 48. Minnesota Statutes 2012, section 90.191, subdivision 1, is amended to read:
    Subdivision 1. Sale requirements. The commissioner may sell the timber on any
tract of state land in lots not exceeding 500 cords in volume, without formalities but for
not less than the full appraised value thereof, to any person. No sale shall be made under
this section to any person holding two more than four permits issued hereunder which are
still in effect;. except that (1) a partnership as defined in chapter 323, which may include
spouses but which shall provide evidence that a partnership exists, may be holding two
permits for each of not more than three partners who are actively engaged in the business
of logging or who are the spouses of persons who are actively engaged in the business of
logging with that partnership; and (2) a corporation, a majority of whose shares and voting
power are owned by natural persons related to each other within the fourth degree of
kindred according to the rules of the civil law or their spouses or estates, may be holding
two permits for each of not more than three shareholders who are actively engaged in the
business of logging or who are the spouses of persons who are actively engaged in the
business of logging with that corporation.

    Sec. 49. Minnesota Statutes 2012, section 90.193, is amended to read:
90.193 EXTENSION OF TIMBER PERMITS.
The commissioner may, in the case of an exceptional circumstance beyond the
control of the timber permit holder which makes it unreasonable, impractical, and not
feasible to complete cutting and removal under the permit within the time allowed, grant
an one regular extension of for one year. A written request for the regular extension must
be received by the commissioner before the permit expires. The request must state the
reason the extension is necessary and be signed by the permit holder. An interest rate of
eight percent may be charged for the period of extension.

    Sec. 50. Minnesota Statutes 2012, section 90.195, is amended to read:
90.195 SPECIAL USE AND PRODUCT PERMIT.
(a) The commissioner may issue a permit to salvage or cut not to exceed 12 cords of
fuelwood per year for personal use from either or both of the following sources: (1) dead,
down, and diseased damaged trees; (2) other trees that are of negative value under good
forest management practices. The permits may be issued for a period not to exceed one
year. The commissioner shall charge a fee for the permit that shall cover the commissioner's
cost of issuing the permit and as provided under section 90.041, subdivision 10. The fee
shall not exceed the current market value of fuelwood of similar species, grade, and volume
that is being sold in the area where the salvage or cutting is authorized under the permit.
(b) The commissioner may issue a special product permit under section 89.42 for
commercial use, which may include incidental volumes of boughs, gravel, hay, biomass,
and other products derived from forest management activities. The value of the products
is the current market value of the products that are being sold in the area. The permit may
be issued for a period not to exceed one year and the commissioner shall charge a fee for
the permit as provided under section 90.041, subdivision 10.
(c) The commissioner may issue a special use permit for incidental volumes of
timber from approved right-of-way road clearing across state land for the purpose of
accessing a state timber permit. The permit shall include the volume and value of timber
to be cleared and may be issued for a period not to exceed one year. A presale conference
as required under section 90.151, subdivision 6, must be completed before the start of
any activities under the permit.

    Sec. 51. Minnesota Statutes 2012, section 90.201, subdivision 2a, is amended to read:
    Subd. 2a. Prompt payment of refunds. Any refund of cash that is due to a permit
holder as determined on a final statement transmitted pursuant to section 90.181 or a
refund of cash made pursuant to section 90.161, subdivision 1, or 90.173, paragraph
(a) , shall be paid to the permit holder according to section 16A.124 unless the refund is
credited on another permit as provided in this chapter.

    Sec. 52. Minnesota Statutes 2012, section 90.211, is amended to read:
90.211 PURCHASE MONEY, WHEN FORFEITED.
If the holder of an effective permit begins to cut and then fails to cut complete any
part thereof of the permit before the expiration of the permit, the permit holder shall
nevertheless pay the price therefor; but under no circumstances shall timber be cut after
the expiration of the permit or extension thereof.

    Sec. 53. Minnesota Statutes 2012, section 90.221, is amended to read:
90.221 TIMBER SALES RECORDS.
The commissioner shall keep timber sales records, including the description of each
tract of land from which any timber is sold; the date of the report of the state appraisers;
the kind, amount, and value of the timber as shown by such report; the date of the sale;
the price for which the timber was sold; the name of the purchaser; the number, date
of issuance and date of expiration of each permit; the date of any assignment of the
permit; the name of the assignee; the dates of the filing and the amounts of the respective
bonds security deposits by the purchaser and assignee; the names of the sureties thereon;
the amount of timber taken from the land; the date of the report of the scaler and state
appraiser; the names of the scaler and the state appraiser who scaled the timber; and the
amount paid for such timber and the date of payment.

    Sec. 54. Minnesota Statutes 2012, section 90.252, subdivision 1, is amended to read:
    Subdivision 1. Consumer scaling. The commissioner may enter into an agreement
with either a timber sale permittee, or the purchaser of the cut products, or both, so
that the scaling of the cut timber and the collection of the payment for the same can be
consummated by the consumer state. Such an agreement shall be approved as to form and
content by the attorney general and shall provide for a bond or cash in lieu of a bond and
such other safeguards as are necessary to protect the interests of the state. The scaling
and payment collection procedure may be used for any state timber sale, except that no
permittee who is also the consumer shall both cut and scale the timber sold unless such
scaling is supervised by a state scaler.

    Sec. 55. Minnesota Statutes 2012, section 90.301, subdivision 2, is amended to read:
    Subd. 2. Seizure of unlawfully cut timber. The commissioner may take possession
of any timber hereafter unlawfully cut upon or taken from any land owned by the state
wherever found and may sell the same informally or at public auction after giving such
notice as the commissioner deems reasonable and after deducting all the expenses of such
sale the proceeds thereof shall be paid into the state treasury to the credit of the proper
fund; and when any timber so unlawfully cut has been intermingled with any other timber
or property so that it cannot be identified or plainly separated therefrom the commissioner
may so seize and sell the whole quantity so intermingled and, in such case, the whole
quantity of such timber shall be conclusively presumed to have been unlawfully taken
from state land. When the timber unlawfully cut or removed from state land is so seized
and sold, the seizure shall not in any manner relieve the trespasser who cut or removed, or
caused the cutting or removal of, any such timber from the full liability imposed by this
chapter for the trespass so committed, but the net amount realized from such sale shall
be credited on whatever judgment is recovered against such trespasser, if the trespass
was deemed to be casual and involuntary.

    Sec. 56. Minnesota Statutes 2012, section 90.301, subdivision 4, is amended to read:
    Subd. 4. Apprehension of trespassers; reward. The commissioner may offer a
reward to be paid to a person giving to the proper authorities any information that leads to
the conviction of a person violating this chapter. The reward is limited to the greater of
$100 or ten percent of the single stumpage value of any timber unlawfully cut or removed.
The commissioner shall pay the reward from funds appropriated for that purpose or from
receipts from the sale of state timber. A reward shall not be paid to salaried forest officers,
state appraisers, scalers, conservation officers, or licensed peace officers.

    Sec. 57. Minnesota Statutes 2012, section 90.41, subdivision 1, is amended to read:
    Subdivision 1. Violations and penalty. (a) Any state scaler or state appraiser who
shall accept any compensation or gratuity for services as such from any other source
except the state of Minnesota, or any state scaler, or other person authorized to scale state
timber, or state appraiser, who shall make any false report, or insert in any such report any
false statement, or shall make any such report without having examined the land embraced
therein or without having actually been upon the land, or omit from any such report any
statement required by law to be made therein, or who shall fail to report any known trespass
committed upon state lands, or who shall conspire with any other person in any manner, by
act or omission or otherwise, to defraud or unlawfully deprive the state of Minnesota of any
land or timber, or the value thereof, shall be guilty of a felony. Any material discrepancy
between the facts and the scale returned by any such person scaling timber for the state
shall be considered prima facie evidence that such person is guilty of violating this statute.
(b) No such appraiser or scaler who has been once discharged for cause shall ever
again be appointed. This provision shall not apply to resignations voluntarily made by and
accepted from such employees.

    Sec. 58. Minnesota Statutes 2012, section 93.46, is amended by adding a subdivision
to read:
    Subd. 10. Scram mining. "Scram mining" means a mining operation that produces
natural iron ore, natural iron ore concentrates, or taconite ore as described in section 93.20,
subdivisions 12 to 18, from previously developed stockpiles, tailing basins, underground
mine workings, or open pits and that involves no more than 80 acres of land not previously
affected by mining, or more than 80 acres of land not previously affected by mining
if the operator can demonstrate that impacts would be substantially the same as other
scram operations. "Land not previously affected by mining" means land upon which mine
wastes have not been deposited and land from which materials have not been removed in
connection with the production or extraction of metallic minerals.

    Sec. 59. Minnesota Statutes 2012, section 93.481, subdivision 3, is amended to read:
    Subd. 3. Term of permit; amendment. (a) A permit issued by the commissioner
pursuant to this section shall be granted for the term determined necessary by the
commissioner for the completion of the proposed mining operation, including reclamation
or restoration. The term of a scram mining permit for iron ore or taconite shall be
determined in the same manner as a permit to mine for an iron ore or taconite mining
operation.
(b) A permit may be amended upon written application to the commissioner. A
permit amendment application fee must be submitted with the written application. The
permit amendment application fee is ten percent of the amount provided for in subdivision
1, clause (3), for an application for the applicable permit to mine. If the commissioner
determines that the proposed amendment constitutes a substantial change to the permit,
the person applying for the amendment shall publish notice in the same manner as for a
new permit, and a hearing shall be held if written objections are received in the same
manner as for a new permit. An amendment may be granted by the commissioner if the
commissioner determines that lawful requirements have been met.

    Sec. 60. [93.61] DRILL CORE LIBRARY ACCESS.
Consistent with section 13.03, subdivision 3, a person shall not be required to pay a
fee to access exploration data, exploration drill core data, mineral evaluation data, and
mining data stored in the drill core library located in Hibbing, Minnesota, and managed
by the commissioner of natural resources. The library shall be open during regular
business hours.

    Sec. 61. Minnesota Statutes 2012, section 97A.401, subdivision 3, is amended to read:
    Subd. 3. Taking, possessing, and transporting wild animals for certain
purposes. (a) Except as provided in paragraph (b), special permits may be issued without
a fee to take, possess, and transport wild animals as pets and for scientific, educational,
rehabilitative, wildlife disease prevention and control, and exhibition purposes. The
commissioner shall prescribe the conditions for taking, possessing, transporting, and
disposing of the wild animals.
(b) A special permit may not be issued to take or possess wild or native deer for
exhibition, propagation, or as pets.
(c) Nonresident professional wildlife rehabilitators with a federal rehabilitation
permit may possess and transport wildlife affected by oil spills.

    Sec. 62. [115.84] WASTEWATER LABORATORY CERTIFICATION.
    Subdivision 1. Wastewater laboratory certification required. (a) Laboratories
performing wastewater or water analytical laboratory work, the results of which are
reported to the agency to determine compliance with a national pollutant discharge
elimination system (NPDES) permit condition or other regulatory document, must be
certified according to this section.
(b) This section does not apply to:
(1) laboratories that are private and for-profit;
(2) laboratories that perform drinking water analyses; or
(3) laboratories that perform remediation program analyses, such as Superfund or
petroleum analytical work.
(c) Until adoption of rules under subdivision 2, laboratories required to be certified
under this section that submit data to the agency must: (1) register with the agency by
submitting registration information required by the agency; or (2) be certified or accredited
by a recognized authority, such as the commissioner of health under sections 144.97 to
144.99, for the analytical methods required by the agency.
    Subd. 2. Rules. The agency may adopt rules to govern certification of laboratories
according to this section. Notwithstanding section 16A.1283, the agency may adopt
rules establishing fees.
    Subd. 3. Fees. (a) Until the agency adopts a rule establishing fees for certification,
the agency shall collect fees from laboratories registering with the agency, but not
accredited by the commissioner of health under sections 144.97 to 144.99, in amounts
necessary to cover the reasonable costs of the certification program, including reviewing
applications, issuing certifications, and conducting audits and compliance assistance.
(b) Fees under this section must be based on the number, type, and complexity of
analytical methods that laboratories are certified to perform.
(c) Revenue from fees charged by the agency for certification shall be credited to
the environmental fund.
    Subd. 4. Enforcement. (a) The commissioner may deny, suspend, or revoke
wastewater laboratory certification for, but is not limited to, any of the following reasons:
fraud, failure to follow applicable requirements, failure to respond to documented
deficiencies or complete corrective actions necessary to address deficiencies, failure to pay
certification fees, or other violations of federal or state law.
(b) This section and the rules adopted under it may be enforced by any means
provided in section 115.071.

    Sec. 63. Minnesota Statutes 2012, section 115A.1320, subdivision 1, is amended to read:
    Subdivision 1. Duties of the agency. (a) The agency shall administer sections
115A.1310 to 115A.1330.
    (b) The agency shall establish procedures for:
    (1) receipt and maintenance of the registration statements and certifications filed
with the agency under section 115A.1312; and
    (2) making the statements and certifications easily available to manufacturers,
retailers, and members of the public.
    (c) The agency shall annually review the value of the following variables that are
part of the formula used to calculate a manufacturer's annual registration fee under section
115A.1314, subdivision 1 :
    (1) the proportion of sales of video display devices sold to households that
manufacturers are required to recycle;
    (2) the estimated per-pound price of recycling covered electronic devices sold to
households;
    (3) the base registration fee; and
    (4) the multiplier established for the weight of covered electronic devices collected
in section 115A.1314, subdivision 1, paragraph (d). If the agency determines that any of
these values must be changed in order to improve the efficiency or effectiveness of the
activities regulated under sections 115A.1312 to 115A.1330, the agency shall submit
recommended changes and the reasons for them to the chairs of the senate and house of
representatives committees with jurisdiction over solid waste policy.
    (d) By January 15 each year, beginning in 2008, the agency shall calculate estimated
sales of video display devices sold to households by each manufacturer during the preceding
program year, based on national sales data, and forward the estimates to the department.
    (e) The agency shall provide a report to the governor and the legislature on the
implementation of sections 115A.1310 to 115A.1330. For each program year, the report
must discuss the total weight of covered electronic devices recycled and a summary
of information in the reports submitted by manufacturers and recyclers under section
115A.1316 . The report must also discuss the various collection programs used by
manufacturers to collect covered electronic devices; information regarding covered
electronic devices that are being collected by persons other than registered manufacturers,
collectors, and recyclers; and information about covered electronic devices, if any, being
disposed of in landfills in this state. The report must include a description of enforcement
actions under sections 115A.1310 to 115A.1330. The agency may include in its report
other information received by the agency regarding the implementation of sections
115A.1312 to 115A.1330. The report must be done in conjunction with the report required
under section 115D.10 115A.121.
    (f) The agency shall promote public participation in the activities regulated under
sections 115A.1312 to 115A.1330 through public education and outreach efforts.
    (g) The agency shall enforce sections 115A.1310 to 115A.1330 in the manner
provided by sections 115.071, subdivisions 1, 3, 4, 5, and 6; and 116.072, except for those
provisions enforced by the department, as provided in subdivision 2. The agency may
revoke a registration of a collector or recycler found to have violated sections 115A.1310
to 115A.1330.
    (h) The agency shall facilitate communication between counties, collection and
recycling centers, and manufacturers to ensure that manufacturers are aware of video
display devices available for recycling.
    (i) The agency shall develop a form retailers must use to report information to
manufacturers under section 115A.1318 and post it on the agency's Web site.
    (j) The agency shall post on its Web site the contact information provided by each
manufacturer under section 115A.1318, paragraph (e).

    Sec. 64. [115A.141] ARCHITECTURAL PAINT; PRODUCT STEWARDSHIP
PROGRAM; STEWARDSHIP PLAN.
    Subdivision 1. Definitions. For purposes of this section, the following terms have
the meanings given:
(1) "architectural paint" means interior and exterior architectural coatings sold in
containers of five gallons or less. Architectural paint does not include industrial coatings,
original equipment coatings, or specialty coatings;
(2) "brand" means a name, symbol, word, or mark that identifies architectural paint,
rather than its components, and attributes the paint to the owner or licensee of the brand as
the producer;
(3) "discarded paint" means architectural paint that is no longer used for its
manufactured purpose;
(4) "producer" means a person that:
(i) has legal ownership of the brand, brand name, or cobrand of architectural paint
sold in the state;
(ii) imports architectural paint branded by a producer that meets item (i) when the
producer has no physical presence in the United States;
(iii) if items (i) and (ii) do not apply, makes unbranded architectural paint that is
sold in the state; or
(iv) sells architectural paint at wholesale or retail, does not have legal ownership of
the brand, and elects to fulfill the responsibilities of the producer for the architectural paint
by certifying that election in writing to the commissioner;
(5) "recycling" means the process of collecting and preparing recyclable materials and
reusing the materials in their original form or using them in manufacturing processes that
do not cause the destruction of recyclable materials in a manner that precludes further use;
(6) "retailer" means any person who offers architectural paint for sale at retail in
the state;
(7) "reuse" means donating or selling collected architectural paint back into the
market for its original intended use, when the architectural paint retains its original
purpose and performance characteristics;
(8) "sale" or "sell" means transfer of title of architectural paint for consideration,
including a remote sale conducted through a sales outlet, catalog, Web site, or similar
electronic means. Sale or sell includes a lease through which architectural paint is
provided to a consumer by a producer, wholesaler, or retailer;
(9) "stewardship assessment" means the amount added to the purchase price of
architectural paint sold in the state that is necessary to cover the cost of collecting,
transporting, and processing postconsumer architectural paint by the producer or
stewardship organization pursuant to a product stewardship program;
(10) "stewardship organization" means an organization appointed by one or more
producers to act as an agent on behalf of the producer to design, submit, and administer a
product stewardship program under this section; and
(11) "stewardship plan" means a detailed plan describing the manner in which a
product stewardship program under subdivision 2 will be implemented.
    Subd. 2. Product stewardship program. For architectural paint sold in the state,
producers must, individually or through a stewardship organization, implement and
finance a statewide product stewardship program that manages the architectural paint by
reducing the paint's waste generation, promoting its reuse and recycling, and providing for
negotiation and execution of agreements to collect, transport, and process the architectural
paint for end-of-life recycling and reuse.
    Subd. 3. Requirement for sale. (a) On and after July 1, 2014, or three months after
program plan approval, whichever is sooner, no producer, wholesaler, or retailer may sell
or offer for sale in the state architectural paint unless the paint's producer participates in an
approved stewardship plan, either individually or through a stewardship organization.
(b) Each producer must operate a product stewardship program approved by the
agency or enter into an agreement with a stewardship organization to operate, on the
producer's behalf, a product stewardship program approved by the agency.
    Subd. 4. Requirement to submit plan. (a) On or before March 1, 2014, and before
offering architectural paint for sale in the state, a producer must submit a stewardship
plan to the agency and receive approval of the plan or must submit documentation to the
agency that demonstrates the producer has entered into an agreement with a stewardship
organization to be an active participant in an approved product stewardship program as
described in subdivision 2. A stewardship plan must include all elements required under
subdivision 5.
(b) An amendment to the plan, if determined necessary by the commissioner, must
be submitted every five years.
(c) It is the responsibility of the entities responsible for each stewardship plan to
notify the agency within 30 days of any significant changes or modifications to the plan or
its implementation. Within 30 days of the notification, a written plan revision must be
submitted to the agency for review and approval.
    Subd. 5. Stewardship plan content. A stewardship plan must contain:
(1) certification that the product stewardship program will accept all discarded
paint regardless of which producer produced the architectural paint and its individual
components;
(2) contact information for the individual and the entity submitting the plan, a list of
all producers participating in the product stewardship program, and the brands covered by
the product stewardship program;
(3) a description of the methods by which the discarded paint will be collected in all
areas in the state without relying on end-of-life fees, including an explanation of how the
collection system will be convenient and adequate to serve the needs of small businesses
and residents in both urban and rural areas on an ongoing basis and a discussion of how
the existing household hazardous waste infrastructure will be considered when selecting
collection sites;
(4) a description of how the adequacy of the collection program will be monitored
and maintained;
(5) the names and locations of collectors, transporters, and recyclers that will
manage discarded paint;
(6) a description of how the discarded paint and the paint's components will be
safely and securely transported, tracked, and handled from collection through final
recycling and processing;
(7) a description of the method that will be used to reuse, deconstruct, or recycle
the discarded paint to ensure that the paint's components, to the extent feasible, are
transformed or remanufactured into finished products for use;
(8) a description of the promotion and outreach activities that will be used to
encourage participation in the collection and recycling programs and how the activities'
effectiveness will be evaluated and the program modified, if necessary;
(9) the proposed stewardship assessment. The producer or stewardship organization
shall propose a uniform stewardship assessment for any architectural paint sold in the
state. The proposed stewardship assessment shall be reviewed by an independent auditor
to ensure that the assessment does not exceed the costs of the product stewardship program
and the independent auditor shall recommend an amount for the stewardship assessment.
The agency must approve the stewardship assessment;
(10) evidence of adequate insurance and financial assurance that may be required for
collection, handling, and disposal operations;
(11) five-year performance goals, including an estimate of the percentage of
discarded paint that will be collected, reused, and recycled during each of the first five
years of the stewardship plan. The performance goals must include a specific goal for the
amount of discarded paint that will be collected and recycled and reused during each year
of the plan. The performance goals must be based on:
(i) the most recent collection data available for the state;
(ii) the estimated amount of architectural paint disposed of annually;
(iii) the weight of the architectural paint that is expected to be available for collection
annually; and
(iv) actual collection data from other existing stewardship programs.
The stewardship plan must state the methodology used to determine these goals; and
(12) a discussion of the status of end markets for collected architectural paint and
what, if any, additional end markets are needed to improve the functioning of the program.
    Subd. 6. Consultation required. Each stewardship organization or individual
producer submitting a stewardship plan must consult with stakeholders including
retailers, contractors, collectors, recyclers, local government, and customers during the
development of the plan.
    Subd. 7. Agency review and approval. (a) Within 90 days after receipt of a proposed
stewardship plan, the agency shall determine whether the plan complies with subdivision
4. If the agency approves a plan, the agency shall notify the applicant of the plan approval
in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of
the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must
submit a revised plan to the agency within 60 days after receiving notice of rejection.
(b) Any proposed changes to a stewardship plan must be approved by the agency
in writing.
    Subd. 8. Plan availability. All draft and approved stewardship plans shall be
placed on the agency's Web site for at least 30 days and made available at the agency's
headquarters for public review and comment.
    Subd. 9. Conduct authorized. A producer or stewardship organization that
organizes collection, transport, and processing of architectural paint under this section
is immune from liability for the conduct under state laws relating to antitrust, restraint
of trade, unfair trade practices, and other regulation of trade or commerce only to the
extent that the conduct is necessary to plan and implement the producer's or organization's
chosen organized collection or recycling system.
    Subd. 10. Responsibility of producers. (a) On and after the date of implementation
of a product stewardship program according to this section, a producer of architectural
paint must add the stewardship assessment, as established under subdivision 5, clause (9),
to the cost of architectural paint sold to retailers and distributors in the state by the producer.
(b) Producers of architectural paint or the stewardship organization shall provide
consumers with educational materials regarding the stewardship assessment and product
stewardship program. The materials must include, but are not limited to, information
regarding available end-of-life management options for architectural paint offered through
the product stewardship program and information that notifies consumers that a charge
for the operation of the product stewardship program is included in the purchase price of
architectural paint sold in the state.
    Subd. 11. Responsibility of retailers. (a) On and after July 1, 2014, or three months
after program plan approval, whichever is sooner, no architectural paint may be sold in the
state unless the paint's producer is participating in an approved stewardship plan.
(b) On and after the implementation date of a product stewardship program according
to this section, each retailer or distributor, as applicable, must ensure that the full amount
of the stewardship assessment added to the cost of architectural paint by producers under
subdivision 10 is included in the purchase price of all architectural paint sold in the state.
(c) Any retailer may participate, on a voluntary basis, as a designated collection
point pursuant to a product stewardship program under this section and in accordance
with applicable law.
(d) No retailer or distributor shall be found to be in violation of this subdivision if,
on the date the architectural paint was ordered from the producer or its agent, the producer
was listed as compliant on the agency's Web site according to subdivision 14.
    Subd. 12. Stewardship reports. Beginning October 1, 2015, producers of
architectural paint sold in the state must individually or through a stewardship organization
submit an annual report to the agency describing the product stewardship program. At a
minimum, the report must contain:
(1) a description of the methods used to collect, transport, and process architectural
paint in all regions of the state;
(2) the weight of all architectural paint collected in all regions of the state and a
comparison to the performance goals and recycling rates established in the stewardship
plan;
(3) the amount of unwanted architectural paint collected in the state by method of
disposition, including reuse, recycling, and other methods of processing;
(4) samples of educational materials provided to consumers and an evaluation of the
effectiveness of the materials and the methods used to disseminate the materials; and
(5) an independent financial audit.
    Subd. 13. Data classification. Trade secret information, as defined under section
13.37, submitted to the agency under this section is nonpublic data under section 13.37,
subdivision 2.
    Subd. 14. Agency responsibilities. The agency shall provide, on its Web site, a
list of all compliant producers and brands participating in stewardship plans that the
agency has approved and a list of all producers and brands the agency has identified as
noncompliant with this section.
    Subd. 15. Local government responsibilities. (a) A city, county, or other public
agency may choose to participate voluntarily in a product stewardship program.
(b) Cities, counties, and other public agencies are encouraged to work with producers
and stewardship organizations to assist in meeting product stewardship program reuse and
recycling obligations, by providing education and outreach or using other strategies.
(c) A city, county, or other public agency that participates in a product stewardship
program must report for the first year of the program to the agency using the reporting
form provided by the agency on the cost savings as a result of participation and describe
how the savings were used.
    Subd. 16. Administrative fee. (a) The stewardship organization or individual
producer submitting a stewardship plan shall pay the agency an annual administrative fee.
The agency shall set the fee at an amount that, when paid by every stewardship organization
or individual producer that submits a stewardship plan, is adequate to cover the agency's
full costs of administering and enforcing this section. The agency may establish a variable
fee based on relevant factors, including, but not limited to, the portion of architectural
paint sold in the state by members of the organization compared to the total amount of
architectural paint sold in the state by all organizations submitting a stewardship plan.
(b) The total amount of annual fees collected under this subdivision must not exceed
the amount necessary to recover costs incurred by the agency in connection with the
administration and enforcement of this section.
(c) The agency shall identify the direct program development or regulatory costs
it incurs under this section before stewardship plans are submitted and shall establish a
fee in an amount adequate to cover those costs, which shall be paid by a stewardship
organization or individual producer that submits a stewardship plan. The commissioner
must make the proposed fee available for public review and comment for at least 30 days.
(d) A stewardship organization or individual producer subject to this section must
pay to the commissioner the agency's administrative fee under paragraph (a) on or before
July 1, 2014, and annually thereafter and the agency's onetime development fee under
paragraph (c) on or before July 1 the year following submission of a stewardship plan.
Each year after the initial payment, the annual administrative fee may not exceed five
percent of the aggregate stewardship assessment collected for the preceding calendar year.
    (e) The commissioner must deposit the fees collected under this section in the
state treasury and credit the fee to the miscellaneous special revenue account in the
environmental fund. Fees in the account may be used by the commissioner to implement
and enforce this section. For fiscal years 2014 and 2015, the amount collected under this
section is annually appropriated to the agency to implement and enforce this section.

    Sec. 65. [115A.142] REPORT TO LEGISLATURE AND GOVERNOR.
As part of the report required under section 115A.121, the commissioner of the
Pollution Control Agency shall provide a report to the governor and the legislature on
the implementation of section 115A.141.

    Sec. 66. Minnesota Statutes 2012, section 115B.20, subdivision 6, is amended to read:
    Subd. 6. Report to legislature. Each year By January 31 of each odd-numbered
year, the commissioner of agriculture and the agency shall submit to the senate Finance
Committee, the house of representatives Ways and Means Committee, the Environment
and Natural Resources Committees of the senate and house of representatives, the Finance
Division of the senate Committee on Environment and Natural Resources, and the house
of representatives Committee on Environment and Natural Resources Finance, and the
Environmental Quality Board a report detailing the activities for which money has been
spent pursuant to this section during the previous fiscal year.
EFFECTIVE DATE.This section is effective July 1, 2013.

    Sec. 67. Minnesota Statutes 2012, section 115B.28, subdivision 1, is amended to read:
    Subdivision 1. Duties. In addition to performing duties specified in sections
115B.25 to 115B.37 or in other law, and subject to the limitations on disclosure contained
in section 115B.35, the agency shall:
(1) adopt rules, including rules governing practice and procedure before the agency,
the form and procedure for applications for compensation, and procedures for claims
investigations;
(2) publicize the availability of compensation and application procedures on a
statewide basis with special emphasis on geographical areas surrounding sites identified
by the agency as having releases from a facility where a harmful substance was placed or
came to be located prior to July 1, 1983;
(3) collect, analyze, and make available to the public, in consultation with the
Department of Health, the Pollution Control Agency, the University of Minnesota Medical
and Public Health Schools, and the medical community, data regarding injuries relating to
exposure to harmful substances; and
(4) prepare and transmit by December 31 of each year to the governor and the
legislature an annual legislative report required under section 115B.20, subdivision
6, to include (i) a summary of agency activity under clause (3); (ii) data determined
by the agency from actual cases, including but not limited to number of cases, actual
compensation received by each claimant, types of cases, and types of injuries compensated,
as they relate to types of harmful substances as well as length of exposure, but excluding
identification of the claimants; (iii) all administrative costs associated with the business of
the agency; and (iv) agency recommendations for legislative changes, further study, or any
other recommendation aimed at improving the system of compensation.

    Sec. 68. Minnesota Statutes 2012, section 115B.421, is amended to read:
115B.421 CLOSED LANDFILL INVESTMENT FUND.
The closed landfill investment fund is established in the state treasury. The fund
consists of money credited to the fund, and interest and other earnings on money in the
fund. The commissioner of management and budget shall transfer an initial amount of
$5,100,000 from the balance in the solid waste fund beginning in fiscal year 2000 and
shall continue to transfer $5,100,000 for each following fiscal year, ceasing after 2003.
Beginning July 1, 2003, funds must be deposited as described in section 115B.445. The
fund shall be managed to maximize long-term gain through the State Board of Investment.
Money in the fund may be spent by the commissioner after fiscal year 2020 in accordance
with sections 115B.39 to 115B.444.

    Sec. 69. Minnesota Statutes 2012, section 115C.02, subdivision 4, is amended to read:
    Subd. 4. Corrective action. "Corrective action" means an action taken to minimize,
eliminate, or clean up a release to protect the public health and welfare or the environment.
Corrective action may include, environmental covenants pursuant to chapter 114E, an
affidavit required under section 116.48, subdivision 6, or similar notice of a release
recorded with real property records.

    Sec. 70. Minnesota Statutes 2012, section 115C.08, subdivision 4, is amended to read:
    Subd. 4. Expenditures. (a) Money in the fund may only be spent:
(1) to administer the petroleum tank release cleanup program established in this
chapter;
(2) for agency administrative costs under sections 116.46 to 116.50, sections
115C.03 to 115C.06, and costs of corrective action taken by the agency under section
115C.03 , including investigations;
(3) for costs of recovering expenses of corrective actions under section 115C.04;
(4) for training, certification, and rulemaking under sections 116.46 to 116.50;
(5) for agency administrative costs of enforcing rules governing the construction,
installation, operation, and closure of aboveground and underground petroleum storage
tanks;
(6) for reimbursement of the environmental response, compensation, and compliance
account under subdivision 5 and section 115B.26, subdivision 4;
(7) for administrative and staff costs as set by the board to administer the petroleum
tank release program established in this chapter;
(8) for corrective action performance audits under section 115C.093;
(9) for contamination cleanup grants, as provided in paragraph (c);
(10) to assess and remove abandoned underground storage tanks under section
115C.094 and, if a release is discovered, to pay for the specific consultant and contractor
services costs necessary to complete the tank removal project, including, but not limited
to, excavation soil sampling, groundwater sampling, soil disposal, and completion of
an excavation report; and
(11) for property acquisition by the agency when the agency has determined that
purchasing a property where a release has occurred is the most appropriate corrective
action. The to acquire interests in real or personal property, including easements,
environmental covenants under chapter 114E, and leases, that the agency determines are
necessary for corrective actions or to ensure the protectiveness of corrective actions. A
donation of an interest in real property to the agency is not effective until the agency
executes a certificate of acceptance. The state is not liable under this chapter solely as a
result of acquiring an interest in real property under this clause. Agency approval of an
environmental covenant under chapter 114E is sufficient evidence of acceptance of an
interest in real property when the agency is expressly identified as a holder in the covenant.
Acquisition of all properties real property under this clause, except environmental
covenants under chapter 114E, is subject to approval by the board.
(b) Except as provided in paragraph (c), money in the fund is appropriated to the
board to make reimbursements or payments under this section.
(c) In fiscal years 2010 and 2011, $3,700,000 is annually appropriated from the fund
to the commissioner of employment and economic development for contamination cleanup
grants under section 116J.554. Beginning in fiscal year 2012 and each year thereafter,
$6,200,000 is annually appropriated from the fund to the commissioner of employment
and economic development for contamination cleanup grants under section 116J.554. Of
this amount, the commissioner may spend up to $225,000 annually for administration
of the contamination cleanup grant program. The appropriation does not cancel and is
available until expended. The appropriation shall not be withdrawn from the fund nor the
fund balance reduced until the funds are requested by the commissioner of employment
and economic development. The commissioner shall schedule requests for withdrawals
from the fund to minimize the necessity to impose the fee authorized by subdivision 2.
Unless otherwise provided, the appropriation in this paragraph may be used for:
(1) project costs at a qualifying site if a portion of the cleanup costs are attributable
to petroleum contamination or new and used tar and tar-like substances, including but not
limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist
primarily of hydrocarbons and are found in natural deposits in the earth or are distillates,
fractions, or residues from the processing of petroleum crude or petroleum products as
defined in section 296A.01; and
(2) the costs of performing contamination investigation if there is a reasonable basis
to suspect the contamination is attributable to petroleum or new and used tar and tar-like
substances, including but not limited to bitumen and asphalt, but excluding bituminous or
asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits
in the earth or are distillates, fractions, or residues from the processing of petroleum crude
or petroleum products as defined in section 296A.01.

    Sec. 71. Minnesota Statutes 2012, section 115C.08, is amended by adding a subdivision
to read:
    Subd. 6. Disposition of property acquired for corrective action. (a) If the
commissioner determines that real or personal property acquired by the agency for a
corrective action is no longer needed for corrective action purposes, the commissioner may:
(1) request the commissioner of administration to dispose of the property according
to sections 16B.281 to 16B.287, subject to conditions the commissioner of the Pollution
Control Agency determines necessary to protect the public health and welfare and the
environment or to comply with federal law;
(2) transfer the property to another state agency, a political subdivision, or a special
purpose district as provided in paragraph (b); or
(3) if required by federal law, take actions and dispose of the property according
to federal law.
(b) If the commissioner determines that real or personal property acquired by
the agency for a corrective action must be operated, maintained, or monitored after
completion of other phases of the corrective action, the commissioner may transfer
ownership of the property to another state agency, a political subdivision, or a special
purpose district that agrees to accept the property. A state agency, political subdivision,
or special purpose district may accept and implement terms and conditions of a transfer
under this paragraph. The commissioner may set terms and conditions for the transfer
that the commissioner considers reasonable and necessary to ensure proper operation,
maintenance, and monitoring of corrective actions; protect the public health and welfare
and the environment; and comply with applicable federal and state laws and regulations.
The state agency, political subdivision, or special purpose district to which the property is
transferred is not liable under this chapter solely as a result of acquiring the property or
acting in accordance with the terms and conditions of transfer.
(c) The commissioner of administration may charge the agency for actual staff and
other costs related to disposal of the property under paragraph (a), clause (1). The net
proceeds of a sale or other transfer of property under this subdivision by the commissioner
or by the commissioner of administration shall be deposited in the petroleum tank fund or
other appropriate fund. Any share of the proceeds that the agency is required by federal
law or regulation to reimburse to the federal government is appropriated from the fund
to the agency for the purpose. Section 16B.287, subdivision 1, does not apply to real
property that is sold by the commissioner of administration and that was acquired under
subdivision 4, clause (11).

    Sec. 72. Minnesota Statutes 2012, section 115D.10, is amended to read:
115D.10 TOXIC POLLUTION PREVENTION EVALUATION REPORT.
The commissioner, in cooperation with the commission, shall report to
the Environment and Natural Resources Committees of the senate and house of
representatives, the Finance Division of the senate Committee on Environment and
Natural Resources, and the house of representatives Committee on Environment and
Natural Resources Finance on progress being made in achieving the objectives of sections
115D.01 to 115D.12. The report must be submitted by February 1 of each even-numbered
year done in conjunction with the report required under section 115A.121.

    Sec. 73. Minnesota Statutes 2012, section 116.48, subdivision 6, is amended to read:
    Subd. 6. Affidavit. (a) Before transferring ownership of property that the owner
knows contains an underground or aboveground storage tank or contained an underground
or aboveground storage tank that had a release for which no corrective action was taken or
if required by the agency as a condition of a corrective action under chapter 115C, the
owner shall record with the county recorder or registrar of titles of the county in which the
property is located an affidavit containing:
(1) a legal description of the property where the tank is located;
(2) a description of the tank, of the location of the tank, and of any known release
from the tank of a regulated substance to the full extent known or reasonably ascertainable;
(3) a description of any restrictions currently in force on the use of the property
resulting from any release; and
(4) the name of the owner.
(b) The county recorder shall record the affidavits in a manner that will insure
their disclosure in the ordinary course of a title search of the subject property. Before
transferring ownership of property that the owner knows contains an underground or
aboveground storage tank, the owner shall deliver to the purchaser a copy of the affidavit
and any additional information necessary to make the facts in the affidavit accurate as of
the date of transfer of ownership.
(c) Failure to record an affidavit as provided in this subdivision does not affect or
prevent any transfer of ownership of the property.

    Sec. 74. [116.68] SILICA SAND MINING MODEL STANDARDS AND
CRITERIA.
    Subdivision 1. Definitions. The definitions in this subdivision apply to sections
116.68 and 116.69.
(a) "Local unit of government" means a county, statutory or home rule charter city,
or town.
(b) "Mining" means excavating silica sand by any process, including digging,
excavating, drilling, blasting, tunneling, dredging, stripping, or by shaft.
(c) "Processing" means washing, cleaning, screening, crushing, filtering, sorting,
processing, stockpiling, and storing silica sand, either at the mining site or at any other site.
(d) "Silica sand" means well-rounded, sand-sized grains of quartz (silicon dioxide),
with very little impurities in terms of other minerals. Specifically, the silica sand for the
purposes of this section is commercially valuable for use in the hydraulic fracturing of
shale to obtain oil and natural gas. Silica sand does not include common rock, stone,
aggregate, gravel, sand with a low quartz level, or silica compounds recovered as a
by-product of metallic mining.
(e) "Silica sand project" means the excavation and mining and processing of silica
sand; the washing, cleaning, screening, crushing, filtering, drying, sorting, stockpiling,
and storing of silica sand, either at the mining site or at any other site; the hauling and
transporting of silica sand; or a facility for transporting silica sand to destinations by rail,
barge, truck, or other means of transportation.
(f) "Temporary storage" means the storage of stock piles of silica sand that have
been transported and await further transport.
(g) "Transporting" means hauling and transporting silica sand, by any carrier:
(1) from the mining site to a processing or transfer site; or
(2) from a processing or storage site to a rail, barge, or transfer site for transporting
to destinations.
    Subd. 2. Standards and criteria. (a) By October 1, 2013, the agency and the
commissioners of natural resources, health, and transportation, in consultation with local
units of government, shall develop model standards and criteria for mining, processing,
and transporting silica sand. These standards and criteria may be used by local units of
government in developing local ordinances. The standards and criteria shall be different
for different geographic areas of the state. The unique karst conditions and landforms of
southeastern Minnesota shall be considered unique when compared with the flat scoured
river terraces and uniform hydrology of the Minnesota Valley. The standards and criteria
developed shall reflect those differences in varying regions of the state. The standards
and criteria must include:
(1) recommendations for setbacks or buffers for mining operation and processing,
including:
(i) any residence or residential zoning district boundary;
(ii) any property line or right-of-way line of any existing or proposed street or
highway;
(iii) ordinary high water levels of public waters;
(iv) bluffs;
(v) designated trout streams, Class 2A water as designated in the rules of the
Pollution Control Agency, or any perennially flowing tributary of a designated trout
stream or Class 2A water;
(vi) calcareous fens;
(vii) wellhead protection areas as defined in section 103I.005;
(viii) critical natural habitat acquired by the commissioner of natural resources
under section 84.944; and
(ix) a natural resource easement paid wholly or in part by public funds;
(2) standards for hours of operation;
(3) groundwater and surface water quality and quantity monitoring and mitigation
plan requirements, including:
(i) applicable groundwater and surface water appropriation permit requirements;
(ii) well sealing requirements;
(iii) annual submission of monitoring well data; and
(iv) storm water runoff rate limits not to exceed two-, ten-, and 100-year storm events;
(4) air monitoring and data submission requirements;
(5) dust control requirements;
(6) noise testing and mitigation plan requirements;
(7) blast monitoring plan requirements;
(8) lighting requirements;
(9) inspection requirements;
(10) containment requirements for silica sand in temporary storage to protect air
and water quality;
(11) containment requirements for chemicals used in processing;
(12) financial assurance requirements;
(13) road and bridge impacts and requirements; and
(14) reclamation plan requirements as required under the rules adopted by the
commissioner of natural resources.
    Subd. 3. Silica sand technical assistance team. By October 1, 2013, the agency
and the commissioners of natural resources, health, and transportation shall assemble
a silica sand technical assistance team to provide local units of government, at their
request, with assistance with ordinance development, zoning, environmental review and
permitting, monitoring, or other issues arising from silica sand mining and processing
operations. The technical assistance team must not impose any fee or charge for this
service. A majority of the members must be from a state agency and all of the members
must have expertise in one or more of the following areas: silica sand mining, hydrology,
air quality, water quality, land use, or other areas related to silica sand mining.
    Subd. 4. Consideration of technical assistance team recommendations. (a) When
the technical assistance team, at the request of the local unit of government, assembles
findings or makes a recommendation related to a proposed silica sand project for the
protection of human health and the environment, a local government unit must consider
the findings or recommendations of the technical assistance team in its approval or denial
of a silica sand project. If the local government unit does not agree with the technical
assistance team's findings and recommendations, the detailed reasons for the disagreement
must be part of the local government unit's record of decision.
(b) Silica sand project proposers must cooperate in providing local government unit
staff, and members of the technical assistance team with information regarding the project.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 75. [116.685] ENVIRONMENTAL REVIEW; SILICA SAND PROJECTS.
(a) Until one year after the effective date of this section, an environmental
assessment worksheet shall be prepared for any silica sand project that will excavate 20 or
more acres of land to a mean depth of ten feet or more during its existence, unless the
project meets or exceeds the thresholds for an environmental impact statement under rules
of the Environmental Quality Board, and an environmental impact statement must be
prepared. In addition to the contents required under statute and rule, an environmental
assessment worksheet completed pursuant to this section must include the following:
(1) a hydrogeologic investigation assessing potential groundwater and surface water
effects and geologic conditions that could create an increased risk of potentially significant
effects on groundwater and surface water;
(2) for a project with the potential to require a groundwater appropriation permit
from the commissioner of natural resources, an assessment of the water resources
available for appropriation;
(3) an air quality impact assessment that includes an assessment of the potential
effects from airborne particulates and dust;
(4) a traffic impact analysis, including documentation of existing transportation
systems, analysis of the potential effects of the project on transportation, and mitigation
measures to eliminate or minimize adverse impacts;
(5) an assessment of compatibility of the project with other existing uses; and
(6) mitigation measures that could eliminate or minimize any adverse environmental
effects for the project.
EFFECTIVE DATE.This section is effective July 1, 2013, and applies to projects
that commence after that date.

    Sec. 76. [116.69] TECHNICAL ASSISTANCE, ORDINANCE, AND PERMIT
LIBRARY.
By October 1, 2013, the agency, in consultation with local units of government,
shall create and maintain an online library on local government ordinances and local
government permits that have been approved for regulation of silica sand projects for
reference by local governments.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 77. Minnesota Statutes 2012, section 116C.03, subdivision 2, is amended to read:
    Subd. 2. Membership. The members of the board are the director of the Office of
Strategic and Long-Range Planning commissioner of administration, the commissioner
of commerce, the commissioner of the Pollution Control Agency, the commissioner
of natural resources, the commissioner of agriculture, the commissioner of health,
the commissioner of employment and economic development, the commissioner of
transportation, the chair of the Board of Water and Soil Resources, and a representative of
the governor's office designated by the governor. The governor shall appoint five members
from the general public to the board, subject to the advice and consent of the senate.
At least two of the five public members must have knowledge of and be conversant in
water management issues in the state. Notwithstanding the provisions of section 15.06,
subdivision 6 , members of the board may not delegate their powers and responsibilities as
board members to any other person.

    Sec. 78. Minnesota Statutes 2012, section 116C.03, subdivision 4, is amended to read:
    Subd. 4. Support. Staff and consultant support for board activities shall be provided
by the Office of Strategic and Long-Range Planning Pollution Control Agency. This
support shall be provided based upon an annual budget and work program developed by
the board and certified to the commissioner by the chair of the board. The board shall
have the authority to request and require staff support from all other agencies of state
government as needed for the execution of the responsibilities of the board.

    Sec. 79. Minnesota Statutes 2012, section 116C.03, subdivision 5, is amended to read:
    Subd. 5. Administration. The board shall contract with the Office of Strategic and
Long-Range Planning Pollution Control Agency for administrative services necessary to
the board's activities. The services shall include personnel, budget, payroll and contract
administration.

    Sec. 80. Minnesota Statutes 2012, section 282.01, subdivision 1a, is amended to read:
    Subd. 1a. Conveyance to public entities. (a) Upon written request from a state
agency or a governmental subdivision of the state, a parcel of unsold tax-forfeited land
must be withheld from sale or lease to others for a maximum of six months. The request
must be submitted to the county auditor. Upon receipt, the county auditor must withhold
the parcel from sale or lease to any other party for six months, and must confirm the
starting date of the six-month withholding period to the requesting agency or subdivision.
If the request is from a governmental subdivision of the state, the governmental
subdivision must pay the maintenance costs incurred by the county during the period the
parcel is withheld. The county board may approve a sale or conveyance to the requesting
party during the withholding period. A conveyance of the property to the requesting
party terminates the withholding period.
A governmental subdivision of the state must not make, and a county auditor must
not act upon, a second request to withhold a parcel from sale or lease within 18 months
of a previous request for that parcel. A county may reject a request made under this
paragraph if the request is made more than 30 days after the county has given notice to the
requesting state agency or governmental subdivision of the state that the county intends to
sell or otherwise dispose of the property.
(b) Nonconservation tax-forfeited lands may be sold by the county board, for
their market value as determined by the county board, to an organized or incorporated
governmental subdivision of the state for any public purpose for which the subdivision is
authorized to acquire property. When the term "market value" is used in this section, it
means an estimate of the full and actual market value of the parcel as determined by the
county board, but in making this determination, the board and the persons employed by or
under contract with the board in order to perform, conduct, or assist in the determination,
are exempt from the licensure requirements of chapter 82B.
(c) Nonconservation tax-forfeited lands may be released from the trust in favor of
the taxing districts on application to the county board by a state agency for an authorized
use at not less than their market value as determined by the county board.
(d) Nonconservation tax-forfeited lands may be sold by the county board to an
organized or incorporated governmental subdivision of the state or state agency for less
than their market value if:
(1) the county board determines that a sale at a reduced price is in the public interest
because a reduced price is necessary to provide an incentive to correct the blighted
conditions that make the lands undesirable in the open market, or the reduced price will
lead to the development of affordable housing; and
(2) the governmental subdivision or state agency has documented its specific plans
for correcting the blighted conditions or developing affordable housing, and the specific
law or laws that empower it to acquire real property in furtherance of the plans.
If the sale under this paragraph is to a governmental subdivision of the state, the
commissioner of revenue must convey the property on behalf of the state by quit claim
deed. If the sale under this paragraph is to a state agency, the commissioner must issue a
conveyance document that releases the property from the trust in favor of the taxing
districts.
(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
may be conveyed by the commissioner of revenue in the name of the state to a
governmental subdivision for an authorized public use, if an application is submitted to the
commissioner which includes a statement of facts as to the use to be made of the tract and
the favorable recommendation of the county board. For the purposes of this paragraph,
"authorized public use" means a use that allows an indefinite segment of the public to
physically use and enjoy the property in numbers appropriate to its size and use, or is for a
public service facility. Authorized public uses as defined in this paragraph are limited to:
(1) a road, or right-of-way for a road;
(2) a park that is both available to, and accessible by, the public that contains
improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;
(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
with a reasonable amount of surrounding land maintained in its natural state;
(4) transit facilities for buses, light rail transit, commuter rail or passenger rail,
including transit ways, park-and-ride lots, transit stations, maintenance and garage
facilities, and other facilities related to a public transit system;
(5) public beaches or boat launches;
(6) public parking;
(7) civic recreation or conference facilities; and
(8) public service facilities such as fire halls, police stations, lift stations, water
towers, sanitation facilities, water treatment facilities, and administrative offices.
No monetary compensation or consideration is required for the conveyance, except as
provided in subdivision 1g, but the conveyance is subject to the conditions provided in
law, including, but not limited to, the reversion provisions of subdivisions 1c and 1d.
(f) The commissioner of revenue shall convey a parcel of nonconservation
tax-forfeited land to a local governmental subdivision of the state by quit claim deed
on behalf of the state upon the favorable recommendation of the county board if the
governmental subdivision has certified to the board that prior to forfeiture the subdivision
was entitled to the parcel under a written development agreement or instrument, but
the conveyance failed to occur prior to forfeiture. No compensation or consideration is
required for, and no conditions attach to, the conveyance.
(g) The commissioner of revenue shall convey a parcel of nonconservation
tax-forfeited land to the association of a common interest community by quit claim deed
upon the favorable recommendation of the county board if the association certifies to the
board that prior to forfeiture the association was entitled to the parcel under a written
agreement, but the conveyance failed to occur prior to forfeiture. No compensation or
consideration is required for, and no conditions attach to, the conveyance.
(h) Conservation tax-forfeited land may be sold to a governmental subdivision of
the state for less than its market value for either: (1) creation or preservation of wetlands;
(2) drainage or storage of storm water under a storm water management plan; or (3)
preservation, or restoration and preservation, of the land in its natural state. The deed must
contain a restrictive covenant limiting the use of the land to one of these purposes for
30 years or until the property is reconveyed back to the state in trust. At any time, the
governmental subdivision may reconvey the property to the state in trust for the taxing
districts. The deed of reconveyance is subject to approval by the commissioner of revenue.
No part of a purchase price determined under this paragraph shall be refunded upon a
reconveyance, but the amount paid for a conveyance under this paragraph may be taken
into account by the county board when setting the terms of a future sale of the same
property to the same governmental subdivision under paragraph (b) or (d). If the lands
are unplatted and located outside of an incorporated municipality and the commissioner
of natural resources determines there is a mineral use potential, the sale is subject to the
approval of the commissioner of natural resources.
(i) A park and recreation board in a city of the first class is a governmental
subdivision for the purposes of this section.
(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed
by the commissioner of revenue in the name of the state to a governmental subdivision for
a school forest under section 89.41. An application that includes a statement of facts as
to the use to be made of the tract and the favorable recommendation of the county board
and the commissioner of natural resources must be submitted to the commissioner of
revenue. No monetary compensation or consideration is required for the conveyance, but
the conveyance is subject to the conditional use and reversion provisions of subdivisions
1c and 1d, paragraph (e). At any time, the governmental subdivision may reconvey the
property back to the state in trust for the taxing districts. The deed of reconveyance is
subject to approval by the commissioner of revenue.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 81. Minnesota Statutes 2012, section 282.01, subdivision 1d, is amended to read:
    Subd. 1d. Reverter for failure to use; conveyance to state. (a) After three years
from the date of any conveyance of tax-forfeited land to a governmental subdivision for
an authorized public use as provided in this section, regardless of when the deed for the
authorized public use was executed, if the governmental subdivision has failed to put the
land to that use, or abandons that use, the governing body of the subdivision must: (1)
with the approval of the county board, purchase the property for an authorized public
purpose at the present market value as determined by the county board, or (2) authorize
the proper officers to convey the land, or the part of the land not required for an authorized
public use, to the state of Minnesota in trust for the taxing districts. If the governing body
purchases the property under clause (1), the commissioner of revenue shall, upon proper
application submitted by the county auditor, convey the property on behalf of the state by
quit claim deed to the subdivision free of a use restriction and the possibility of reversion
or defeasement. If the governing body decides to reconvey the property to the state under
this clause, the officers shall execute a deed of conveyance immediately. The conveyance
is subject to the approval of the commissioner and its form must be approved by the
attorney general. For 15 years from the date of the conveyance, there is no failure to put
the land to the authorized public use and no abandonment of that use if a formal plan of
the governmental subdivision, including, but not limited to, a comprehensive plan or land
use plan, shows an intended future use of the land for the authorized public use.
(b) Property held by a governmental subdivision of the state under a conditional use
deed executed under this section by the commissioner of revenue on or after January 1,
2007, may be acquired by that governmental subdivision after 15 years from the date
of the conveyance if the commissioner determines upon written application from the
subdivision that the subdivision has in fact put the property to the authorized public use for
which it was conveyed, and the subdivision has made a finding that it has no current plans
to change the use of the lands. Prior to conveying the property, the commissioner shall
inquire whether the county board where the land is located objects to a conveyance of the
property to the subdivision without conditions and without further act by or obligation of
the subdivision. If the county does not object within 60 days, and the commissioner makes
a favorable determination, the commissioner shall issue a quit claim deed on behalf of
the state unconditionally conveying the property to the governmental subdivision. For
purposes of this paragraph, demonstration of an intended future use for the authorized
public use in a formal plan of the governmental subdivision does not constitute use for
that authorized public use.
(c) Property held by a governmental subdivision of the state under a conditional use
deed executed under this section by the commissioner of revenue before January 1, 2007,
is released from the use restriction and possibility of reversion on January 1, 2022, if the
county board records a resolution describing the land and citing this paragraph. The
county board may authorize the county treasurer to deduct the amount of the recording
fees from future settlements of property taxes to the subdivision.
(d) Except for tax-forfeited land conveyed to establish a school forest under section
89.41, property conveyed under a conditional use deed executed under this section by
the commissioner of revenue, regardless of when the deed for the authorized public use
was executed, is released from the use restriction and reverter, and any use restriction or
reverter for which no declaration of reversion has been recorded with the county recorder
or registrar of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30
years from the date the deed was acknowledged; or (3) final resolution of an appeal to
district court under subdivision 1e, if a lis pendens related to the appeal is recorded in the
office of the county recorder or registrar of titles, as appropriate, prior to January 1, 2015.
(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a
school forest under section 89.41 is subject to a perpetual conditional use deed and reverter.
The property reverts to the state in trust for the taxing districts by operation of law if the
commissioner of natural resources determines and reports to the commissioner of revenue
under section 89.41, subdivision 3, that the governmental subdivision has failed to use the
land for school forest purposes for three consecutive years. The commissioner of revenue
shall record a declaration of reversion for land that has reverted under this paragraph.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 82. Minnesota Statutes 2012, section 282.04, is amended by adding a subdivision
to read:
    Subd. 1b. Intermediate timber sales. (a) The county auditor may sell the timber on
any tract of tax-forfeited land in lots not exceeding 3,000 cords in volume, in the same
manner as timber sold at public auction under subdivision 1 and related laws, subject to
the following special exceptions and limitations:
(1) the county auditor shall offer all tracts authorized for sale under this subdivision
separately from the sale of tracts of timber made pursuant to subdivision 1;
(2) no bidder may be awarded more than 25 percent of the total tracts offered at the
first round of bidding unless fewer than four tracts are offered, in which case not more
than one tract shall be awarded to one bidder; and
(3) no sale may be made to a person having more than 30 employees, unless
approved by the commissioner of natural resources.
Any tract not sold at public auction under this subdivision may be offered for
private sale as authorized by subdivision 1, to persons eligible under this subdivision at
the appraised value.
For the purposes of this subdivision, "employee" means an individual working in the
timber or wood products industry for salary or wages on a full-time or part-time basis.
(b) The auction sale procedure set forth in this subdivision constitutes an additional
alternative timber sale procedure available to the county auditor and is not intended to
replace other authority possessed by the county auditor to sell timber in lots of 3,000
cords or less.
(c) Another bidder or the county auditor may request that the number of employees a
bidder has pursuant to paragraph (a), clause (3), be confirmed if there is evidence that the
bidder may be ineligible due to exceeding the employee threshold. The county auditor
shall request information from the commissioners of labor and industry and employment
and economic development including the premiums paid by the bidder in question for
workers' compensation insurance coverage for all employees of the bidder. The county
auditor shall review the information submitted by the commissioners of labor and industry
and employment and economic development and make a determination based on that
information as to whether the bidder is eligible. A bidder is considered eligible and may
participate in intermediate auctions until determined ineligible under this paragraph.
(d) Notwithstanding paragraph (a), the county auditor may sell timber under this
subdivision in excess of 3,000 cords in volume if approved by the commissioner of natural
resources.

    Sec. 83. [383B.761] DISCONTINUANCE OF HENNEPIN COUNTY SOIL AND
WATER CONSERVATION DISTRICT; TRANSFER OF DUTIES.
    Subdivision 1. Petition. Notwithstanding section 103C.225, the Hennepin County
Board of Commissioners may petition the Minnesota Board of Water and Soil Resources
to discontinue the Hennepin Soil and Water Conservation District and transfer the duties
and authorities of the district to the Hennepin County Board of Commissioners. The
Minnesota Board of Water and Soil Resources has 60 days from the receipt of the petition
to conduct its review. The Minnesota Board of Water and Soil Resources shall make
its determination regarding the petition no later than its first regular meeting following
the 60-day review period.
    Subd. 2. Discontinuance. The Minnesota Board of Water and Soil Resources shall
review the petition submitted under subdivision 1 to determine whether progress toward
the goals identified in section 103C.005 can be achieved by discontinuing the Hennepin
Soil and Water Conservation District and transferring the duties and authorities of the
district to the Hennepin County Board of Commissioners. If the Board of Water and Soil
Resources determines that progress toward the goals identified in section 103C.005 can
be achieved by the discontinuance of the district and the transfer of district duties and
authorities to the Hennepin County Board of Commissioners, the Board of Water and Soil
Resources shall order the discontinuance of the Hennepin Soil and Water Conservation
District. The order shall become effective within 60 days from the date of the order. The
Minnesota Board of Water and Soil Resources may discontinue the Hennepin Soil and
Water Conservation District without a referendum.
    Subd. 3. Transfer of duties and authorities. Upon discontinuance of the
Hennepin Soil and Water Conservation District by the Minnesota Board of Water and Soil
Resources, the Hennepin County Board of Commissioners has the duties and authorities
of a soil and water conservation district. The Hennepin County Board of Commissioners
may assign these duties and responsibilities to the Hennepin County Department of
Environmental Services or other county departments as deemed appropriate by the county
board. All contracts in effect on the date of the discontinuance of the district, to which
the Hennepin Soil and Water Conservation District is a party, remain in force and effect
for the period provided in the contracts. Hennepin County shall be substituted for the
Hennepin Soil and Water Conservation District as party to the contracts and succeed
to the district's rights and duties.
    Subd. 4. Transfer of assets. The Hennepin Conservation District Board of
Supervisors shall transfer the assets of the district to the Hennepin County Board of
Commissioners no later than 60 days from the date of the order. The Hennepin County
Board of Commissioners shall use the transferred assets for purposes of implementing the
transferred duties and authorities.
    Subd. 5. Grants. Upon discontinuance of the Hennepin Soil and Water
Conservation District by the Minnesota Board of Water and Soil Resources, Hennepin
County has the eligibility of a soil and water conservation district for state grant funds.
    Subd. 6. Reestablishment. The Hennepin County Board of Commissioners may
petition the Minnesota Board of Water and Soil Resources to reestablish the Hennepin
Soil and Water Conservation District. Alternatively, the Minnesota Board of Water
and Soil Resources under its authority in section 103C.201, and after giving notice
of corrective actions and time to implement the corrective actions, may reestablish the
Hennepin Soil and Water Conservation District if it determines the goals identified in
section 103C.005 are not being achieved. The Minnesota Board of Water and Soil
Resources may reestablish the Hennepin Soil and Water Conservation District under this
subdivision without a referendum.
EFFECTIVE DATE; LOCAL APPROVAL.This section is effective the day after
the governing body of Hennepin County and its chief clerical officer timely complete their
compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

    Sec. 84. Minnesota Statutes 2012, section 473.846, is amended to read:
473.846 REPORTS REPORT TO LEGISLATURE.
The agency shall submit to the senate and house of representatives committees
having jurisdiction over environment and natural resources separate reports a report
describing the activities for which money for landfill abatement has been spent under
sections section 473.844 and 473.845. The report for section 473.844 expenditures shall be
included in the report required by section 115A.411, and shall include recommendations
on the future management and use of the metropolitan landfill abatement account. By
December 31 of each year, the commissioner shall submit the report for section 473.845
on contingency action trust fund activities.

    Sec. 85. Laws 2010, chapter 361, article 3, section 7, is amended to read:
    Sec. 7. PARKS.
The Minneapolis Park and Recreation Board may acquire all or part of the entire
property known as the Scherer Brothers Lumber Yard for a metropolitan area regional
park and may allocate any future appropriations to the board from the parks and trails fund
to acquire the property. Notwithstanding Minnesota Rules, part 6115.0190, subpart 3 or
5, item E, or 6115.0191, subpart 8, item A, the Minneapolis Park and Recreation Board
is authorized to recreate Hall's Island or such similar island located at approximately
river mile 855 on the Mississippi River, just north of the Plymouth Avenue bridge, at
a project site in Section 15, Township 29 North, Range 24 West, Hennepin County,
Minnesota, on or adjacent to the property known as the Scherer Brothers Lumber
Yard. The commissioner of natural resources shall grant any authorizations, permits, or
permissions necessary to effectuate the project, provided that the project is consistent with
all other standards and guidelines in Minnesota Rules, chapter 6115. If the project is not
constructed within six years of the effective date of this act, the authority provided in this
section to reconstruct Hall's Island expires. Once recreated, Hall's Island shall remain in
public ownership in perpetuity.
EFFECTIVE DATE.This section is effective the day after the Minneapolis Park
and Recreation Board timely completes compliance with Minnesota Statutes, section
645.021, subdivisions 2 and 3.

    Sec. 86. NORTH MISSISSIPPI REGIONAL PARK.
(a) The boundaries of the North Mississippi Regional Park are extended to include
the approximately 20.82 acres of land adjacent to the existing park known as Webber Park
and that part of Shingle Creek that flows through Webber Park and continues through
North Mississippi Regional Park into the Mississippi River.
(b) Funds appropriated for North Mississippi Regional Park may be expended to
provide for visitor amenities, including construction of a natural lake pond and building
for lake pond users.
EFFECTIVE DATE.This section is effective the day after the Minneapolis Park
and Recreation Board timely completes compliance with Minnesota Statutes, section
645.021, subdivisions 2 and 3.

    Sec. 87. PERMIT CANCELLATION.
Upon written request submitted by a permit holder to the commissioner of natural
resources on or before June 1, 2015, the commissioner shall cancel any provision in a
timber sale permit sold prior to September 1, 2012, that requires the security payment for,
or removal of all or part of the balsam fir when the permit contains at least 50 cords of
balsam fir. The remaining provisions of the permit remain in effect. The permit holder
may be required to fell or pile the balsam fir to meet management objectives.

    Sec. 88. RULEMAKING AUTHORITY.
The commissioner of natural resources may use the good cause exemption under
Minnesota Statutes, section 14.388, subdivision 1, clause (3), to adopt rules to conform
with the changes in this article to Minnesota Statutes, section 97A.401, subdivision 3, and
Minnesota Statutes, section 14.386, does not apply except as provided under Minnesota
Statutes, section 14.388.

    Sec. 89. RULEMAKING; DISPLAY OF PADDLE BOARD LICENSE
NUMBERS.
(a) The commissioner of natural resources shall amend Minnesota Rules, parts
6110.0200, 6110.0300, and 6110.0400, to exempt paddle boards from the requirement to
display license certificates and license numbers, in the same manner as other nonmotorized
watercraft such as canoes and kayaks.
(b) The commissioner may use the good cause exemption under Minnesota Statutes,
section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
Statutes, section 14.386, does not apply except as provided under Minnesota Statutes,
section 14.388.

    Sec. 90. RULES; SILICA SAND.
(a) The commissioner of the Pollution Control Agency shall adopt rules pertaining
to the control of particulate emissions from silica sand mines.
(b) The commissioner of natural resources shall adopt rules pertaining to the
reclamation of silica sand mines.
(c) By January 1, 2014, the Department of Health shall adopt an air quality health
advisory for silica sand.
(d) By August 1, 2013, the Environmental Quality Board shall amend its rules for
environmental review, adopted under Minnesota Statutes, chapter 116D, for silica sand
mining and processing to take into account the increased activity in the state and concerns
over the size of specific operations. The board may use the good cause exemption under
Minnesota Statutes, section 14.388, subdivision 1, clause (1).
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 91. INTERIM ORDINANCE EXTENSION OR RENEWAL.
Notwithstanding Minnesota Statutes, sections 394.34 and 462.355, subdivision
4, until March 1, 2015, a local unit of government may extend for one year an interim
ordinance or renew an expired ordinance prohibiting new or expanded silica sand projects,
as defined in Minnesota Statutes, section 116.68, subdivision 1, and extend the ordinance
an additional year by resolution of the local unit of government.
EFFECTIVE DATE.This section is effective retroactively to March 1, 2013.

    Sec. 92. REPEALER.
(a) Minnesota Statutes 2012, sections 90.163; 90.173; and 90.41, subdivision 2, are
repealed.
(b) Laws 2011, First Special Session chapter 2, article 4, section 30, is repealed.
(c) Minnesota Rules, parts 6115.0190, subparts 3 and 5; 6115.0191, subpart 8, item
A; 7021.0010, subparts 1, 2, 4, and 5; 7021.0020; 7021.0030; 7021.0040; 7021.0050,
subpart 5; 9210.0300; 9210.0310; 9210.0320; 9210.0330; 9210.0340; 9210.0350;
9210.0360; 9210.0370; 9210.0380; and 9220.0530, subpart 6, are repealed.

ARTICLE 3

AGRICULTURE

	Section 1. SUMMARY OF APPROPRIATIONS.

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

			2014		2015		Total
	General	$	38,780,000	$	38,780,000	$	77,560,000
	Agricultural	$	800,000	$	800,000	$	1,600,000
	Remediation	$	388,000	$	388,000	$	776,000
	Total	$	39,968,000	$	39,968,000	$	79,936,000

Sec. 2. AGRICULTURE APPROPRIATIONS.

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

				APPROPRIATIONS
				Available for the Year
				Ending June 30
					2014		2015

Sec. 3. DEPARTMENT OF AGRICULTURE

Subdivision 1.Total Appropriation

$

32,488,000

$

32,488,000

	Appropriations by Fund
		2014	2015
	General	31,300,000	31,300,000
	Remediation	388,000	388,000
	Agricultural	800,000	800,000

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

Subd. 2.Protection Services

12,283,000

12,283,000

	Appropriations by Fund
	General	11,895,000	11,895,000
	Remediation	388,000	388,000

$388,000 the first year and $388,000 the
second year are from the remediation fund
for administrative funding for the voluntary
cleanup program.
$75,000 the first year and $75,000 the second
year are for compensation for destroyed or
crippled animals under Minnesota Statues,
section 3.737. If the amount in the first year
is insufficient, the amount in the second year
is available in the first year.
$75,000 the first year and $75,000 the second
year are for compensation for crop damage
under Minnesota Statutes, section 3.7371. If
the amount in the first year is insufficient, the
amount in the second year is available in the
first year.
If the commissioner determines that claims
made under Minnesota Statutes, section
3.737 or 3.7371, are unusually high, amounts
appropriated for either program may be
transferred to the appropriation for the other
program.
$335,000 the first year and $335,000 the
second year are for an increase in the
operating budget for the laboratory services
division.

Subd. 3.Agricultural Marketing and Development

3,062,000

3,062,000

$186,000 the first year and $186,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants
for Minnesota grown promotion under
Minnesota Statutes, section 17.102. Grants
may be made for one year. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract
on or before June 30, 2015, for Minnesota
grown grants in this paragraph are available
until June 30, 2017.
$100,000 each year is for a licensed
education professional for the agriculture
in the classroom program to develop and
disseminate curriculum, provide teacher
training opportunities, and work with
schools to enhance agricultural literacy by
incorporating agriculture into classroom
curriculum.
$10,000 the first year and $10,000 the second
year are for annual cost-share payments to
resident farmers or entities that sell, process,
or package agricultural products in this state
for the costs of organic certification. Annual
cost-share payments must be two-thirds of the
cost of the certification or $350, whichever
is less. A certified organic operation
is eligible to receive annual cost-share
payments for up to five years. In any year
when federal organic cost-share program
funds are available or when there is any
excess appropriation in either fiscal year, the
commissioner may allocate these funds for
organic market and program development,
including organic producer education efforts,
assistance for persons transitioning from
conventional to organic agriculture, or
sustainable agriculture demonstration grants
authorized under Minnesota Statutes, section
17.116, and pertaining to organic research or
demonstration. Any unencumbered balance
does not cancel at the end of the first year
and is available for the second year.

Subd. 4.Bioenergy and Value-Added Agriculture

9,400,000

9,400,000

$6,500,000 the first year and $7,700,000
the second year are for the agricultural
growth, research, and innovation program
in Minnesota Statutes, section 41A.12. The
commissioner may use up to 4.5 percent
of this appropriation for costs incurred to
administer the program. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered
under contract on or before June 30, 2015, for
agricultural growth, research, and innovation
grants in this paragraph are available until
June 30, 2017.
Money in this appropriation may be used
to provide additional assistance to persons
eligible for the pilot agricultural microloan
program under Minnesota Statutes, section
41B.056.
Money in this appropriation may be used
for sustainable agriculture grants under
Minnesota Statutes, section 17.116.
Money in this appropriation may be
used for bioenergy grants. The NextGen
Energy Board, established in Minnesota
Statutes, section 41A.105, shall make
recommendations to the commissioner on
grants for owners of Minnesota facilities
producing bioenergy, organizations that
provide for on-station, on-farm field scale
research and outreach to develop and test
the agronomic and economic requirements
of diverse stands of prairie plants and other
perennials for bioenergy systems or grants
for certain nongovernmental entities. For
the purposes of this paragraph, "bioenergy"
includes transportation fuels derived from
cellulosic material, as well as the generation
of energy for commercial heat, industrial
process heat, or electrical power from
cellulosic materials via gasification or
other processes. Grants are limited to 50
percent of the cost of research, technical
assistance, or equipment related to bioenergy
production or $500,000, whichever is less.
Grants to nongovernmental entities for the
development of business plans and structures
related to community ownership of eligible
bioenergy facilities together may not exceed
$150,000. The board shall make a good-faith
effort to select projects that have merit, and,
when taken together, represent a variety of
bioenergy technologies, biomass feedstocks,
and geographic regions of the state. Projects
must have a qualified engineer provide
certification on the technology and fuel
source. Grantees must provide reports at
the request of the commissioner. No later
than February 1, 2015, the commissioner
shall report on the projects funded under this
appropriation to the legislative committees
with jurisdiction over agriculture finance.
Notwithstanding Minnesota Statutes, section
41A.12, subdivision 3, of the amount
appropriated in this subdivision, $2,900,000
the first year and $1,700,000 the second year
are for the following purposes:
(1) $500,000 each year is for grants to the
Agricultural Utilization Research Institute;
(2) $500,000 each year is for transfer
to the Minnesota Agriculture Education
Leadership Council to contract with member
organizations of the council to assist with
the farm business management database
and a statewide one-on-one farm business
management delivery system;
(3) $100,000 each year is for grants to the
director of the Minnesota Extension Service
of the University of Minnesota for 4-H;
(4) $100,000 each year is for grants to the
Minnesota FFA Association;
(5) $200,000 the first year is for transfer to the
Rural Finance Authority revolving account
under Minnesota Statutes, section 41B.06,
for the pilot agricultural microloan program
under Minnesota Statutes, section 41B.056;
(6) $500,000 each year is available for
distribution in equal amounts to each of the
state's county fairs to enhance arts access
and education and to preserve and promote
Minnesota's history and cultural heritage; and
(7) $1,000,000 the first year is for a grant
to the city of Morris for loans or grants to
agricultural processing facilities for energy
efficiency improvements.
Funds available under clause (7) shall be
used to increase conservation and promote
energy efficiency through retrofitting existing
systems and installing new systems to
recover waste heat from industrial processes
and reuse energy. The appropriation for
a grant in clause (7) is not available until
the commissioner determines that at least
$1,000,000 is committed to the project from
nonpublic sources.
The base budget for the agricultural growth,
research, and innovation program for fiscal
year 2016 and later is $9,400,000.

Subd. 5.Administration and Financial Assistance

7,743,000

7,743,000

	Appropriations by Fund
	General	6,943,000	6,943,000
	Agricultural	800,000	800,000

$634,000 the first year and $634,000 the
second year are for continuation of the dairy
development and profitability enhancement
and dairy business planning grant programs
established under Laws 1997, chapter
216, section 7, subdivision 2, and Laws
2001, First Special Session chapter 2,
section 9, subdivision 2. The commissioner
may allocate the available sums among
permissible activities, including efforts to
improve the quality of milk produced in the
state in the proportions that the commissioner
deems most beneficial to Minnesota's
dairy farmers. The commissioner must
submit a detailed accomplishment report
and a work plan detailing future plans for,
and anticipated accomplishments from,
expenditures under this program to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agricultural policy and finance on or before
the start of each fiscal year. If significant
changes are made to the plans in the course
of the year, the commissioner must notify the
chairs and ranking minority members.
$47,000 the first year and $47,000 the second
year are for the Northern Crops Institute.
These appropriations may be spent to
purchase equipment.
$18,000 the first year and $18,000 the
second year are for a grant to the Minnesota
Livestock Breeders Association.
$235,000 the first year and $235,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D.
$474,000 the first year and $474,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1. Aid payments to county and
district agricultural societies and associations
shall be disbursed no later than July 15 of
each year. These payments are the amount of
aid from the state for an annual fair held in
the previous calendar year.
$1,000 the first year and $1,000 the second
year are for grants to the Minnesota State
Poultry Association.
$108,000 the first year and $108,000 the
second year are for annual grants to the
Minnesota Turf Seed Council for basic
and applied research on: (1) the improved
production of forage and turf seed related to
new and improved varieties; and (2) native
plants, including plant breeding, nutrient
management, pest management, disease
management, yield, and viability. The grant
recipient may subcontract with a qualified
third party for some or all of the basic or
applied research.
$1,000,000 the first year and $1,000,000 the
second year are for grants to Second Harvest
Heartland on behalf of Minnesota's six
Second Harvest food banks for the purchase
of milk for distribution to Minnesota's food
shelves and other charitable organizations
that are eligible to receive food from the food
banks. Milk purchased under the grants must
be acquired from Minnesota milk processors
and based on low-cost bids. The milk must be
allocated to each Second Harvest food bank
serving Minnesota according to the formula
used in the distribution of United States
Department of Agriculture commodities
under The Emergency Food Assistance
Program (TEFAP). Second Harvest
Heartland must submit quarterly reports
to the commissioner on forms prescribed
by the commissioner. The reports must
include, but are not limited to, information
on the expenditure of funds, the amount
of milk purchased, and the organizations
to which the milk was distributed. Second
Harvest Heartland may enter into contracts
or agreements with food banks for shared
funding or reimbursement of the direct
purchase of milk. Each food bank receiving
money from this appropriation may use up to
two percent of the grant for administrative
expenses.
$94,000 the first year and $94,000 the
second year are for transfer to the Board of
Trustees of the Minnesota State Colleges
and Universities for statewide mental health
counseling support to farm families and
business operators through farm business
management programs at Central Lakes
College and Ridgewater College.
$17,000 the first year and $17,000 the
second year are for grants to the Minnesota
Horticultural Society.
Notwithstanding Minnesota Statutes,
section 18C.131, $800,000 the first year
and $800,000 the second year are from the
fertilizer account in the agricultural fund
for grants for fertilizer research as awarded
by the Minnesota Agricultural Fertilizer
Research and Education Council under
Minnesota Statutes, section 18C.71. The
amount appropriated in either fiscal year
must not exceed 57 percent of the inspection
fee revenue collected under Minnesota
Statutes, section 18C.425, subdivision 6,
during the previous fiscal year. No later
than February 1, 2015, the commissioner
shall report to the legislative committees
with jurisdiction over agriculture finance.
The report must include the progress and
outcome of funded projects as well as the
sentiment of the council concerning the need
for additional research funds.

Sec. 4. BOARD OF ANIMAL HEALTH

$

4,837,000

$

4,837,000

Sec. 5. AGRICULTURAL UTILIZATION RESEARCH INSTITUTE

$

2,643,000

$

2,643,000

    Sec. 6. Minnesota Statutes 2012, section 17.03, subdivision 3, is amended to read:
    Subd. 3. Cooperation with federal agencies. (a) The commissioner shall cooperate
with the government of the United States, with financial agencies created to assist in the
development of the agricultural resources of this state, and so far as practicable may use
the facilities provided by the existing state departments and the various state and local
organizations. This subdivision is intended to relate to every function and duty which
devolves upon the commissioner.
    (b) The commissioner may apply for, receive, and disburse federal funds made
available to the state by federal law or regulation for any purpose related to the powers and
duties of the commissioner. All money received by the commissioner under this paragraph
shall be deposited in the state treasury and is appropriated to the commissioner for the
purposes for which it was received. Money made available under this paragraph may
be paid pursuant to applicable federal regulations and rate structures. Money received
under this paragraph does not cancel and is available for expenditure according to federal
law. The commissioner may contract with and enter into grant agreements with persons,
organizations, educational institutions, firms, corporations, other state agencies, and any
agency or instrumentality of the federal government to carry out agreements made with
the federal government relating to the expenditure of money under this paragraph. Bid
requirements under chapter 16C do not apply to contracts under this paragraph.

    Sec. 7. Minnesota Statutes 2012, section 17.1015, is amended to read:
17.1015 PROMOTIONAL EXPENDITURES.
In order to accomplish the purposes of section 17.101, the commissioner may
participate jointly with private persons in appropriate programs and projects and may enter
into contracts to carry out those programs and projects. The contracts may not include
the acquisition of land or buildings and are not subject to the provisions of chapter 16C
relating to competitive bidding.
The commissioner may spend money appropriated for the purposes of section
17.101 in the same manner that private persons, firms, corporations, and associations
make expenditures for these purposes, and expenditures made pursuant to section 17.101
for food, lodging, or travel are not governed by the travel rules of the commissioner of
management and budget.

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

    Sec. 9. Minnesota Statutes 2012, section 18C.430, is amended to read:
18C.430 COMMERCIAL ANIMAL WASTE TECHNICIAN.
    Subdivision 1. Requirement. (a) Except as provided in paragraph (c), after March
1, 2000, A person may not manage or apply animal wastes to the land for hire without a
valid commercial animal waste technician license. This section does not apply to a person
managing or applying animal waste on land managed by the person's employer.:
(1) without a valid commercial animal waste technician applicator license;
(2) without a valid commercial animal waste technician site manager license; or
(3) as a sole proprietorship, company, partnership, or corporation unless a
commercial animal waste technician company license is held and a commercial animal
waste technical site manager is employed by the entity.
(b) A person managing or applying animal wastes for hire must have a valid
license identification card when managing or applying animal wastes for hire and must
display it upon demand by an authorized representative of the commissioner or a law
enforcement officer. The commissioner shall prescribe the information required on the
license identification card.
(c) A person who is not a licensed commercial animal waste technician who has had
at least two hours of training or experience in animal waste management may manage
or apply animal waste for hire under the supervision of a commercial animal waste
technician. A commercial animal waste technician applicator must have a minimum of
two hours of certification training in animal waste management and may only manage or
apply animal waste for hire under the supervision of a commercial animal waste technician
site manager. The commissioner shall prescribe the conditions of the supervision and the
form and format required on the certification training.
(d) This section does not apply to a person managing or applying animal waste on
land managed by the person's employer.
    Subd. 2. Responsibility. A person required to be licensed under this section who
performs animal waste management or application for hire or who employs a person to
perform animal waste management or application for compensation is responsible for
proper management or application of the animal wastes.
    Subd. 3. License. (a) A commercial animal waste technician license, including
applicator, site manager, and company:
(1) is valid for three years one year and expires on December 31 of the third year for
which it is issued, unless suspended or revoked before that date;
(2) is not transferable to another person; and
(3) must be prominently displayed to the public in the commercial animal waste
technician's place of business.
(b) The commercial animal waste technician company license number assigned by
the commissioner must appear on the application equipment when a person manages
or applies animal waste for hire.
    Subd. 4. Application. (a) A person must apply to the commissioner for a commercial
animal waste technician license on forms and in the manner required by the commissioner
and must include the application fee. The commissioner shall prescribe and administer
an examination or equivalent measure to determine if the applicant is eligible for the
commercial animal waste technician license, site manager license or applicator license.
(b) The commissioner of agriculture, in cooperation with the University of
Minnesota Extension Service and appropriate educational institutions, shall establish and
implement a program for training and licensing commercial animal waste technicians.
    Subd. 5. Renewal application. (a) A person must apply to the commissioner of
agriculture to renew a commercial animal waste technician license and must include the
application fee. The commissioner may renew a commercial animal waste technician
applicator or site manager license, subject to reexamination, attendance at workshops
approved by the commissioner, or other requirements imposed by the commissioner to
provide the animal waste technician with information regarding changing technology and
to help ensure a continuing level of competence and ability to manage and apply animal
wastes properly. The applicant may renew a commercial animal waste technician license
within 12 months after expiration of the license without having to meet initial testing
requirements. The commissioner may require additional demonstration of animal waste
technician qualification if a person has had a license suspended or revoked or has had a
history of violations of this section.
(b) An applicant who meets renewal requirements by reexamination instead
of attending workshops must pay a fee for the reexamination as determined by the
commissioner.
    Subd. 6. Financial responsibility. (a) A commercial animal waste technician
license may not be issued unless the applicant furnishes proof of financial responsibility.
The financial responsibility may be demonstrated by (1) proof of net assets equal to or
greater than $50,000, or (2) a performance bond or insurance of the kind and in an amount
determined by the commissioner of agriculture.
(b) The bond or insurance must cover a period of time at least equal to the term of
the applicant's license. The commissioner shall immediately suspend the license of a
person who fails to maintain the required bond or insurance.
(c) An employee of a licensed person is not required to maintain an insurance policy
or bond during the time the employer is maintaining the required insurance or bond.
(d) Applications for reinstatement of a license suspended under paragraph (b) must
be accompanied by proof of satisfaction of judgments previously rendered.
    Subd. 7. Application fee. (a) A person initially applying for or renewing
a commercial animal waste technician applicator license must pay a nonrefundable
application fee of $50 and a fee of $10 for each additional identification card requested.
$25. A person initially applying for or renewing a commercial animal waste technician
site manager license must pay a nonrefundable application fee of $50. A person initially
applying for or renewing a commercial animal waste technician company license must
pay a nonrefundable application fee of $100.
(b) A license renewal application received after March 1 in the year for which the
license is to be issued is subject to a penalty fee of 50 percent of the application fee. The
penalty fee must be paid before the renewal license may be issued.
(c) An application for a duplicate commercial animal waste technician license must
be accompanied by a nonrefundable fee of $10.

    Sec. 10. Minnesota Statutes 2012, section 18C.433, subdivision 1, is amended to read:
    Subdivision 1. Requirement. Beginning January 1, 2006, only a commercial
animal waste technician, site manager or commercial animal waste technician applicator
may apply animal waste from a feedlot that:
(1) has a capacity of 300 animal units or more; and
(2) does not have an updated manure management plan that meets the requirements
of Pollution Control Agency rules.

    Sec. 11. UPDATE REQUIRED; REPORT.
No later than December 31, 2017, the commissioner of agriculture must use
existing pesticide regulatory account resources to update and modify applicator education
and training materials as required in section 8. No later than January 15, 2015, the
commissioner must report to the legislative committees and divisions with jurisdiction over
agriculture policy and finance regarding the agency's progress and a schedule of additional
activities the commissioner will accomplish to meet the December 31, 2017, deadline.

ARTICLE 4

COMMERCE AND ENERGY

Section 1. SUMMARY OF APPROPRIATIONS.

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

			2014		2015		Total
	General	$	31,276,000	$	29,276,000	$	60,552,000
	Petroleum Tank		1,052,000		1,052,000		2,104,000
	Workers' Compensation		751,000		751,000		1,502,000
	Total	$	33,079,000	$	31,079,000	$	64,158,000

Sec. 2. COMMERCE AND ENERGY APPROPRIATIONS.

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

				APPROPRIATIONS
				Available for the Year
				Ending June 30
					2014		2015

Sec. 3. DEPARTMENT OF COMMERCE

Subdivision 1.Total Appropriation

$

26,901,000

$

24,901,000

	Appropriations by Fund
		2014	2015
	General	25,098,000	23,098,000
	Petroleum Tank	1,052,000	1,052,000
	Workers' Compensation	751,000	751,000

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

Subd. 2.Financial Institutions

4,885,000

4,885,000

$142,000 each year is for the regulation of
mortgage originators and servicers under
Minnesota Statutes, chapters 58 and 58A.

Subd. 3.Petroleum Tank Release Compensation Board

1,052,000

1,052,000

This appropriation is from the petroleum
tank fund.

Subd. 4.Administrative Services

6,490,000

6,490,000

$375,000 each year is for additional
compliance efforts with unclaimed property.
The commissioner may issue contracts for
these services.

Subd. 5.Telecommunications

1,259,000

1,259,000

$250,000 each year is for the Broadband
Development Office.
The following transfers are from the
telecommunications access Minnesota
fund. $500,000 the first year and $800,000
the second year and each year thereafter
are for transfer to the commissioner of
human services to supplement the ongoing
operational expenses of the Commission
of Deaf, DeafBlind, and Hard of Hearing
Minnesotans.
$290,000 each year is for transfer to the
chief information officer for the purpose of
coordinating technology accessibility and
usability.

Subd. 6.Enforcement

4,048,000

4,048,000

	Appropriations by Fund
	General	3,850,000	3,850,000
	Workers' Compensation	198,000	198,000

Subd. 7.Energy Resources

5,252,000

3,252,000

$2,000,000 the first year is for the
weatherization assistance program. This is a
onetime appropriation and is available until
June 30, 2015.

Subd. 8.Insurance

3,915,000

3,915,000

	Appropriations by Fund
	General	3,362,000	3,362,000
	Workers' Compensation	553,000	553,000

Sec. 4. PUBLIC UTILITIES COMMISSION

$

6,178,000

$

6,178,000

    Sec. 5. Minnesota Statutes 2012, section 45.0135, subdivision 6, is amended to read:
    Subd. 6. Insurance fraud prevention account. The insurance fraud prevention
account is created in the state treasury. Money received from assessments under
subdivision 7 and transferred from the automobile theft prevention account in section
65B.84, subdivision 1, is deposited in the account. Money in this fund is appropriated
to the commissioner of commerce for the purposes specified in this section and sections
60A.951 to 60A.956.

    Sec. 6. Minnesota Statutes 2012, section 60A.14, subdivision 1, is amended to read:
    Subdivision 1. Fees other than examination fees. In addition to the fees and
charges provided for examinations, the following fees must be paid to the commissioner
for deposit in the general fund:
(a) by township mutual fire insurance companies;
(1) for filing certificate of incorporation $25 and amendments thereto, $10;
(2) for filing annual statements, $15;
(3) for each annual certificate of authority, $15;
(4) for filing bylaws $25 and amendments thereto, $10;
(b) by other domestic and foreign companies including fraternals and reciprocal
exchanges;
(1) for filing an application for an initial certification of authority to be admitted
to transact business in this state, $1,500;
(2) for filing certified copy of certificate of articles of incorporation, $100;
(3) for filing annual statement, $225;
(4) for filing certified copy of amendment to certificate or articles of incorporation,
$100;
(5) for filing bylaws, $75 or amendments thereto, $75;
(6) for each company's certificate of authority, $575, annually;
(c) the following general fees apply:
(1) for each certificate, including certified copy of certificate of authority, renewal,
valuation of life policies, corporate condition or qualification, $25;
(2) for each copy of paper on file in the commissioner's office 50 cents per page,
and $2.50 for certifying the same;
(3) for license to procure insurance in unadmitted foreign companies, $575;
(4) for valuing the policies of life insurance companies, one cent per $1,000 of
insurance so valued, provided that the fee shall not exceed $13,000 per year for any
company. The commissioner may, in lieu of a valuation of the policies of any foreign life
insurance company admitted, or applying for admission, to do business in this state, accept
a certificate of valuation from the company's own actuary or from the commissioner of
insurance of the state or territory in which the company is domiciled;
(5) for receiving and filing certificates of policies by the company's actuary, or by
the commissioner of insurance of any other state or territory, $50;
(6) for each appointment of an agent filed with the commissioner, $10 $30;
(7) for filing forms, rates, and compliance certifications under section 60A.315, $140
per filing, or $125 per filing when submitted via electronic filing system. Filing fees
may be paid on a quarterly basis in response to an invoice. Billing and payment may
be made electronically;
(8) for annual renewal of surplus lines insurer license, $300.
The commissioner shall adopt rules to define filings that are subject to a fee.

    Sec. 7. Minnesota Statutes 2012, section 65B.84, subdivision 1, is amended to read:
    Subdivision 1. Program described; commissioner's duties; appropriation. (a)
The commissioner of commerce shall:
(1) develop and sponsor the implementation of statewide plans, programs, and
strategies to combat automobile theft, improve the administration of the automobile theft
laws, and provide a forum for identification of critical problems for those persons dealing
with automobile theft;
(2) coordinate the development, adoption, and implementation of plans, programs,
and strategies relating to interagency and intergovernmental cooperation with respect
to automobile theft enforcement;
(3) annually audit the plans and programs that have been funded in whole or in part
to evaluate the effectiveness of the plans and programs and withdraw funding should the
commissioner determine that a plan or program is ineffective or is no longer in need
of further financial support from the fund;
(4) develop a plan of operation including:
(i) an assessment of the scope of the problem of automobile theft, including areas
of the state where the problem is greatest;
(ii) an analysis of various methods of combating the problem of automobile theft;
(iii) a plan for providing financial support to combat automobile theft;
(iv) a plan for eliminating car hijacking; and
(v) an estimate of the funds required to implement the plan; and
(5) distribute money, in consultation with the commissioner of public safety,
pursuant to subdivision 3 from the automobile theft prevention special revenue account
for automobile theft prevention activities, including:
(i) paying the administrative costs of the program;
(ii) providing financial support to the State Patrol and local law enforcement
agencies for automobile theft enforcement teams;
(iii) providing financial support to state or local law enforcement agencies for
programs designed to reduce the incidence of automobile theft and for improved
equipment and techniques for responding to automobile thefts;
(iv) providing financial support to local prosecutors for programs designed to reduce
the incidence of automobile theft;
(v) providing financial support to judicial agencies for programs designed to reduce
the incidence of automobile theft;
(vi) providing financial support for neighborhood or community organizations or
business organizations for programs designed to reduce the incidence of automobile
theft and to educate people about the common methods of automobile theft, the models
of automobiles most likely to be stolen, and the times and places automobile theft is
most likely to occur; and
(vii) providing financial support for automobile theft educational and training
programs for state and local law enforcement officials, driver and vehicle services exam
and inspections staff, and members of the judiciary.
(b) The commissioner may not spend in any fiscal year more than ten percent of the
money in the fund for the program's administrative and operating costs. The commissioner
is annually appropriated and must distribute the amount of the proceeds credited to
the automobile theft prevention special revenue account each year, less the transfer of
$1,300,000 each year to the general fund described in section 168A.40, subdivision 4.
(c) At the end of each fiscal year, the commissioner may transfer any unobligated
balances in the auto theft prevention account to the insurance fraud prevention account
under section 45.0135, subdivision 6.

    Sec. 8. Minnesota Statutes 2012, section 216B.16, is amended by adding a subdivision
to read:
    Subd. 6e. Revenue allocation among consumer classes. (a) This subdivision
applies only to investor-owned electric utilities who have at least 50,000 customers, but
no more than 200,000 customers.
(b) For all filings made prior to January 1, 2018, cost of service shall be the primary
consideration in the commission's determination of revenue allocation among customer
classes. The commission's discretion to deviate from cost of service and consider noncost
factors when it determines revenue allocation among customer classes is limited to the
following parameters:
(1) no deviations of more than four percent for all filings made after January 1,
2014; and
(2) no deviations of more than two percent for all filings made after January 1, 2016.
Revenue allocation among customer classes that deviates from the cost of service must be
supported by a preponderance of the evidence.
(c) For all filings made on or after January 1, 2018, cost of service shall be the only
consideration in the commission's determination of revenue allocation among customer
classes.
(d) At least 60 days prior to its next general rate proceeding, a utility subject to
this subdivision shall be required to meet with interested stakeholders to explore the
possibility of expanding or increasing access to electric affordability programs for
low-income consumers.
(e) Upon the filing of a general rate case by a utility subject to this subdivision in
which the filing utility seeks to impose rates based on cost of service, the filing utility
must deposit $10,000 into an account devoted to funding a program approved by the
commission under section 216B.16, subdivision 15. The funds shall be used to expand the
outreach of the commission-approved affordability program.
EFFECTIVE DATE.The section is effective the day following final enactment and
applies to general rate changes filed on or after that date.

    Sec. 9. [216C.411] DEFINITIONS.
For the purposes of sections 216C.411 to 216C.415, the following terms have the
meanings given.
(a) "Made in Minnesota" means the manufacture in this state of solar photovoltaic
modules:
(1) at a manufacturing facility located in Minnesota that is registered and authorized
to manufacture and apply the UL 1703 certification mark to solar photovoltaic modules by
Underwriters Laboratory (UL), CSA International, Intertek, or an equivalent UL-approved
independent certification agency;
(2) that bear UL 1703 certification marks from UL, CSA International, Intertek, or
an equivalent UL-approved independent certification agency, which must be physically
applied to the modules at a manufacturing facility described in clause (1); and
(3) that are manufactured in Minnesota:
(i) by manufacturing processes that must include tabbing, stringing, and lamination;
or
(ii) by interconnecting low-voltage direct current photovoltaic elements that produce
the final useful photovoltaic output of the modules.
A solar photovoltaic module that is manufactured by attaching microinverters, direct
current optimizers, or other power electronics to a laminate or solar photovoltaic
module that has received UL 1703 certification marks outside Minnesota from UL, CSA
International, Intertek, or an equivalent UL-approved independent certification agency is
not "Made in Minnesota" under this paragraph.
    (b) "Solar photovoltaic module" has the meaning given in section 116C.7791,
subdivision 1, paragraph (e).
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 10. [216C.412] "MADE IN MINNESOTA" SOLAR ENERGY
PRODUCTION INCENTIVE ACCOUNT.
    Subdivision 1. Account established; account management. A "Made in
Minnesota" solar energy production incentive account is established as a separate account
in the special revenue fund in the state treasury. Earnings, such as interest, dividends,
and any other earnings arising from account assets, must be credited to the account.
Funds remaining in the account at the end of a fiscal year do not cancel to the general
fund but remain in the account. There is annually appropriated from the account to the
commissioner of commerce money sufficient to make the incentive payments under
section 216C.415 and to administer sections 216C.412 to 216C.415.
    Subd. 2. Payments from utilities and associations. (a) Beginning January 1, 2014,
and each January 1 thereafter, through 2023, for a total of ten years, each electric public
utility, cooperative electric association, and municipal electric utility subject to section
216B.241 must annually pay to the commissioner of commerce five percent of the amount
it was required to spend in the previous year, based on its sale of electricity, on energy
conservation improvements under section 216B.241, subdivisions 1a and 1b. Payments
made under this paragraph count towards satisfying expenditure obligations of a public
utility, cooperative electric association, or municipal utility under section 216B.241,
subdivision 1b. The commissioner shall, upon receipt of the funds, deposit them in the
account established in subdivision 1. A public utility, municipal utility, or cooperative
electric association subject to this paragraph must be credited energy-savings for the
purpose of satisfying its energy savings requirement under section 216B.241, subdivision
1c, based on its payment to the commissioner. For a cooperative electric association or
municipal utility, the kilowatt hours of energy-savings credit equals the total dollar amount
transferred by the utility to the commissioner under this paragraph divided by the utility's
or association's average cost per kilowatt hour saved for the previous calendar year under
its conservation improvement program under section 216B.241.
(b) Notwithstanding section 116C.779, subdivision 1, paragraph (g), beginning
January 1, 2014, and continuing through January 1, 2023, for a total of ten years, the utility
that manages the account under section 116C.779 must annually pay from that account to
the commissioner an amount that, when added to the total amount paid to the commissioner
of commerce under paragraph (a), totals $15,000,000 annually. The commissioner shall,
upon receipt of the payment, deposit it in the account established in subdivision 1.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 11. [216C.413] "MADE IN MINNESOTA" SOLAR ENERGY
PRODUCTION INCENTIVE; QUALIFICATION.
    Subdivision 1. Application. A manufacturer of solar photovoltaic modules seeking
to qualify those modules as eligible to receive the "Made in Minnesota" solar energy
production incentive must submit an application to the commissioner of commerce on a
form prescribed by the commissioner. The application must contain:
(1) a technical description of the solar photovoltaic module and the processes used
to manufacture it, excluding proprietary details;
(2) documentation that the solar photovoltaic module meets all the required
applicable parts of the "Made in Minnesota" definition in section 216C.411, including
evidence of the UL 1703 right to mark for all solar photovoltaic modules seeking to
qualify as "Made in Minnesota";
(3) any additional nonproprietary information requested by the commissioner
of commerce; and
(4) certification signed by the chief executive officer of the manufacturing company
attesting to the truthfulness of the contents of the application and supporting materials
under penalty of perjury.
    Subd. 2. Certification. If the commissioner determines that a manufacturer's solar
photovoltaic module meets the definition of "Made in Minnesota" in section 216C.411, the
commissioner shall issue the manufacturer a "Made in Minnesota" certificate containing
the name and model numbers of the certified solar photovoltaic modules and the date of
certification. The commissioner must issue or deny the issuance of a certificate within 90
days of receipt of a completed application. A copy of the certificate must be provided to
each purchaser of the solar photovoltaic module.
    Subd. 3. Revocation of certification. The commissioner may revoke a certification
of a module as "Made in Minnesota" if the commissioner finds that the module no longer
meets the requirements to be certified. The revocation does not affect incentive payments
awarded prior to the revocation.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 12. [216C.414] "MADE IN MINNESOTA" SOLAR ENERGY
PRODUCTION INCENTIVE.
    Subdivision 1. Setting incentive. Within 90 days of a module being certified as
"Made in Minnesota," the commissioner of commerce shall set a solar energy production
incentive amount for that solar photovoltaic module for the purpose of the incentive
payment under section 216C.415. The incentive is a performance-based financial
incentive expressed as a per kilowatt-hour amount. The amount shall be used for incentive
applications approved in the year to which the incentive amount is applicable for the
ten-year duration of the incentive payments. An incentive amount must be calculated for
each module for each calendar year, through 2023.
    Subd. 2. Criteria for determining incentive amount. (a) The commissioner shall
set the incentive payment amount by determining the average amount of incentive payment
required to allow an average owner of installed solar photovoltaic modules a reasonable
return on their investment. In setting the incentive amount the commissioner shall consider:
(1) an estimate of the installed cost per kilowatt-direct current, based on the cost data
supplied by the manufacturer in the application submitted under section 216C.413, and an
estimate of the average installation cost based on a representative sample of Minnesota
solar photovoltaic installed projects;
(2) the average insolation rate in Minnesota;
(3) an estimate of the decline in the generation efficiency of the solar photovoltaic
modules over time;
(4) the rate paid by utilities to owners of solar photovoltaic modules under section
216B.164 or other law;
(5) applicable federal tax incentives for installing solar photovoltaic modules; and
(6) the estimated levelized cost per kilowatt-hour generated.
(b) The commissioner shall annually, for incentive applications received in a year,
revise each incentive amount based on the factors in paragraph (a), clauses (1) to (6),
general market conditions, and the availability of other incentives. In no case shall the
"Made in Minnesota" incentive amount result in the "Made in Minnesota" incentives paid
exceeding 40 percent, net of average applicable taxes on the ten-year incentive payments,
of the average historic installation cost per kilowatt. The commissioner may exceed the 40
percent cap if the commissioner determines it is necessary to fully expend funds available
for incentive payments in a particular year.
    Subd. 3. Metering of production. A utility or association must, at the expense of a
customer, provide a meter to measure the production of a solar photovoltaic module
system that is approved to receive incentive payments. The utility or association must
furnish the commissioner with information sufficient for the commissioner to determine
the incentive payment. The information must be provided on a calendar year basis by no
later than March 1. The commissioner shall provide an association or utility with forms to
use to provide the production information. A customer must attest to the accuracy of the
production information.
    Subd. 4. Payment due date. Payments must be made no later than July 1 following
the year of production.
    Subd. 5. Renewable energy credits. Renewable energy credits associated with
energy provided to a utility or association for which an incentive payment is made belong
to the utility or association.

    Sec. 13. [216C.415] "MADE IN MINNESOTA" SOLAR ENERGY
PRODUCTION INCENTIVE; PAYMENT.
    Subdivision 1. Incentive payment. Incentive payments may be made under this
section only to an owner of grid-connected solar photovoltaic modules with a total
nameplate capacity below 40-kilowatts direct current who:
(1) has submitted to the commissioner, on a form established by the commissioner,
an application to receive the incentive that has been approved by the commissioner;
(2) has received a "Made in Minnesota" certificate under section 216C.413 for
the module; and
(3) has installed on residential or commercial property solar photovoltaic modules
that are generating electricity and has received a "Made in Minnesota" certificate under
section 216C.413.
    Subd. 2. Application process. Applications for an incentive payment must be
received by the commissioner between January 1 and February 28. The commissioner
shall by a random method approve the number of applications the commissioner
reasonably determines will exhaust the funds available for payment for the ten-year period
of incentive payments. Applications for residential and commercial installations shall be
separately randomly approved. The random method adopted by the commissioner must
allow for the commissioner to achieve statewide geographic distribution of the kilowatt
hours of payment if there are sufficient applications to achieve that distribution.
    Subd. 3. Commissioner approval of incentive application. The commissioner
must approve an application for an incentive for an owner to be eligible for incentive
payments. The commissioner must not approve an application in a calendar year if the
commissioner determines there will not be sufficient funding available to pay an incentive
to the applicant for any portion of the ten-year duration of payment. The commissioner
shall annually establish a cap on the cumulative capacity for a program year based on
funds available and historic average installation costs. Receipt of an incentive is not
an entitlement and payment need only be made from available funds in the "Made in
Minnesota" solar production incentive account.
    Subd. 4. Eligibility window; payment duration. (a) Payments may be made under
this section only for electricity generated from new solar photovoltaic module installations
that are commissioned between January 1, 2014, and December 31, 2023.
(b) The payment eligibility window of the incentive begins and runs consecutively
from the date the solar system is commissioned.
(c) An owner of solar photovoltaic modules may receive payments under this
section for a particular module for a period of ten years provided that sufficient funds are
available in the account.
(d) No payment may be made under this section for electricity generated after
December 31, 2033.
(e) An owner of solar photovoltaic modules may not first begin to receive payments
under this section after December 31, 2024.
    Subd. 5. Allocation of payments. (a) If there are sufficient applications,
approximately 50 percent of the incentive payment shall be for owners of eligible solar
photovoltaic modules installed on residential property, and approximately 50 percent shall
be for owners of eligible solar photovoltaic modules installed on commercial property.
(b) The commissioner shall endeavor to geographically distribute incentives paid
under this section to owners of solar photovoltaic modules installed throughout the state.
(c) For purposes of this subdivision:
(1) "residential property" means residential real estate that is occupied and used as a
homestead by its owner or by a renter and includes "multifamily housing development"
as defined in section 462C.02, subdivision 5, except that residential property on which
solar photovoltaic modules (i) whose capacity exceeds 10 kilowatts is installed; or (ii)
connected to a utility's distribution system and whose electricity is purchased by several
residents, each of whom own a share of the electricity generated, shall be deemed
commercial property; and
(2) "commercial property" means real property on which is located a business,
government, or nonprofit establishment.
    Subd. 6. Limitation. An owner receiving an incentive payment under this section
may not receive a rebate under section 116C.7791 for the same solar photovoltaic modules.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 14. Minnesota Statutes 2012, section 237.012, subdivision 3, is amended to read:
    Subd. 3. Annual reports. The commissioner of commerce Office of Broadband
Development must annually by February 10 report on the achievement of the goals
under subdivisions 1 and 2 to the chairs and ranking minority members of the legislative
committees with primary jurisdiction over telecommunication issues. The report must
also suggest policies, incentives, and legislation designed to accelerate the achievement of
the goals. The report on goals under subdivision 1 must be made through 2015.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 15. Minnesota Statutes 2012, section 237.52, subdivision 4, is amended to read:
    Subd. 4. Appropriation. Money in the fund is appropriated to the commissioner of
commerce to implement sections 237.51 to 237.56, to the commissioner of employment
and economic development to implement section 248.062, and to the commissioner of
human services to implement section 256C.30, and to the Legislative Coordinating
Commission to provide captioning of legislative activity on the commission's Web site
and for a consolidated access fund for other state agencies.

    Sec. 16. Minnesota Statutes 2012, section 237.52, subdivision 5, is amended to read:
    Subd. 5. Expenditures. (a) Money in the fund may only be used for:
(1) expenses of the Department of Commerce, including personnel cost, public
relations, advisory board members' expenses, preparation of reports, and other reasonable
expenses not to exceed ten percent of total program expenditures;
(2) reimbursing the commissioner of human services for purchases made or services
provided pursuant to section 237.53; and
(3) contracting for the provision of TRS required by section 237.54; and
(4) expenses of the Legislative Coordinating Commission for providing captioning
of legislative activity on the commission's Web site as required under the Americans
with Disabilities Act and section 363A.42 and for a consolidated access fund for other
state agencies.
(b) All costs directly associated with the establishment of the program, the purchase
and distribution of telecommunications devices, and the provision of TRS are either
reimbursable or directly payable from the fund after authorization by the commissioner
of commerce. The commissioner of commerce shall contract with one or more TRS
providers to indemnify the telecommunications service providers for any fines imposed
by the Federal Communications Commission related to the failure of the relay service to
comply with federal service standards. Notwithstanding section 16A.41, the commissioner
may advance money to the TRS providers if the providers establish to the commissioner's
satisfaction that the advance payment is necessary for the provision of the service. The
advance payment may be used only for working capital reserve for the operation of the
service. The advance payment must be offset or repaid by the end of the contract fiscal
year together with interest accrued from the date of payment.

    Sec. 17. [237.90] OFFICE OF BROADBAND DEVELOPMENT.
    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
have the meanings given them.
(b) "Broadband" or "broadband service" means any service providing advanced
telecommunications capability and Internet access with transmission speeds that, at a
minimum, meet the Federal Communications Commission definition for broadband.
(c) "Local unit of government" means any political subdivision of the state including,
without limitation, counties, statutory and home rule charter cities, and towns.
(d) "Office" means the Office of Broadband Development established in subdivision
2.
    Subd. 2. Office established. An Office of Broadband Development is established
within the Department of Commerce. The director serves in the unclassified service and
must be qualified by experience and training in broadband. The office may employ staff
necessary to carry out the office's duties under subdivision 4.
    Subd. 3. Purpose. The purpose of the office is to encourage, foster, develop, and
improve broadband within the state in order to:
(1) drive job creation, promote innovation, and expand markets for Minnesota
businesses;
(2) serve the ongoing and growing needs of Minnesota's education systems, health
care system, public safety system, industries and businesses, governmental operations,
and citizens; and
(3) improve accessibility for underserved communities and populations.
    Subd. 4. Duties. The office shall have the power and duty to:
(1) coordinate with state, regional, local, and private entities to develop, to the
maximum extent practicable, a uniform statewide broadband access and usage policy;
(2) develop, recommend, and implement a statewide plan to encourage cost-effective
broadband access, and to make recommendations for increased usage, particularly in
rural and other underserved areas;
(3) coordinate efforts, in consultation and cooperation with appropriate state
agencies, local units of government, and private entities, to meet the state's broadband
goals in section 237.012;
(4) develop, coordinate, and implement the state's broadband infrastructure
development program, including a "dig once" policy with the Department of Transportation;
(5) provide consultation services to local units of government or other project
sponsors in connection with the planning, acquisition, improvement, construction, or
development of any broadband deployment project;
(6) encourage public-private partnerships to increase deployment and adoption
of broadband services and applications, including recommending funding options and
possible incentives to encourage investment in broadband expansion;
(7) monitor the broadband development efforts of other states and nations in areas
such as business, education, public safety, and health;
(8) monitor broadband-related activities at the federal level, including regulatory and
policy changes and the potential impact on broadband deployment and sustainability in
the state;
(9) serve as an information clearinghouse for federal programs providing financial
assistance to institutions located in rural areas seeking to obtain access to high speed
broadband service, and use this information as an outreach tool to make institutions
located in rural areas that are unserved or underserved with respect to broadband service
aware of the existence of federal assistance;
    (10) evaluate security, vulnerability, and redundancy actions necessary to ensure
reliability;
(11) coordinate with the Governor's Broadband Task Force;
(12) provide an annual report, as required by subdivision 5; and
(13) perform any other activities consistent with the office's purpose.
    Subd. 5. Reporting. (a) Beginning on January 15, 2014, and each year thereafter,
the Office of Broadband Development shall report to the legislative committees with
jurisdiction over telecommunications policy and finance on the office's activities during
the previous year.
(b) The report shall contain, at a minimum:
(1) an analysis of the current availability and use of broadband, including average
broadband speeds, within the state;
(2) information gathered from schools, libraries, hospitals, and public safety facilities
across the state, determining the actual speed and capacity of broadband currently in use
and the need, if any, for increases in speed and capacity to meet current or anticipated needs;
(3) an analysis of incumbent broadband infrastructure within the state and its ability
to spur economic development;
(4) an analysis of the degree to which new, additional, or improved broadband
infrastructure would spur economic development in the state;
(5) a summary of the office's activities in coordinating broadband infrastructure
development;
(6) any proposed legislative and policy initiatives; and
(7) any other information requested by the legislative committees having jurisdiction
over telecommunications policy and finance, or that the office deems necessary.
(c) The report may be submitted electronically and is subject to section 3.195,
subdivision 1.

    Sec. 18. Minnesota Statutes 2012, section 239.101, subdivision 3, is amended to read:
    Subd. 3. Petroleum inspection fee; appropriation, uses. (a) An inspection fee
is imposed (1) on petroleum products when received by the first licensed distributor,
and (2) on petroleum products received and held for sale or use by any person when the
petroleum products have not previously been received by a licensed distributor. The
petroleum inspection fee is $1 for every 1,000 gallons received. The commissioner of
revenue shall collect the fee. The revenue from 81 93 cents of the fee is appropriated to
the commissioner of commerce for the cost of operations of the Division of Weights and
Measures, petroleum supply monitoring, and to make grants to providers of low-income
weatherization services to install renewable energy equipment in households that are
eligible for weatherization assistance under Minnesota's weatherization assistance
program state plan. The remainder of the fee must be deposited in the general fund.
    (b) The commissioner of revenue shall credit a person for inspection fees previously
paid in error or for any material exported or sold for export from the state upon filing of a
report as prescribed by the commissioner of revenue.
    (c) The commissioner of revenue may collect the inspection fee along with any
taxes due under chapter 296A.
(d) Of the 93 cents appropriated in paragraph (a), at least five percent shall be used
to make grants to providers of low-income weatherization services to install renewable
energy equipment in households that are eligible for weatherization assistance under
Minnesota's weatherization assistance program state plan.

    Sec. 19. STATE BROADBAND STRATEGY; REPORT.
The Office of Broadband Development shall conduct research and produce a
report recommending a set of programs and strategies the state can pursue to promote
improvement, more efficient and effective use, and expansion of broadband services in
ways that will have the greatest impact on the state's economic development, by which is
meant enhancing the ability of Minnesota citizens and businesses to develop their skills,
expand businesses to new markets, develop new products, reach more customers, and
lower costs. While the state's broadband goals in Minnesota Statutes, section 237.012,
address the universal provision of greater broadband access and speed statewide, this report
must consider broadband as an economic development tool and must examine and analyze:
(1) how the state can best use its limited resources to adopt strategies and make
investments to improve the use of broadband services by subgroups of broadband users,
including mobile broadband users, that promise to deliver the greatest economic impact
per dollar of state investment;
(2) roles the state can play in addition to financial assistance for broadband
infrastructure, including supporting education and training for Minnesotans to enable
them to use broadband more effectively; and
(3) strategies and opportunities for state investment to leverage additional amounts
of private capital and financial assistance from the federal government in order to achieve
these goals.
By January 15, 2014, the office shall submit the report to the chairs and ranking minority
members of the senate and house of representatives committees with jurisdiction over
telecommunications issues.

    Sec. 20. SOLAR PHOTOVOLTAIC MODULES.
No solar photovoltaic module may be installed that is financed directly or indirectly,
wholly or in part, with money appropriated in this act, unless the solar photovoltaic
module is made in Minnesota as defined in Minnesota Statutes, section 16B.323,
subdivision 1, paragraph (b).

    Sec. 21. VALUE OF ON-SITE ENERGY STORAGE STUDY.
(a) The commissioner of commerce shall contract with an independent consultant
selected through a request for proposal process to produce a report analyzing the potential
costs and benefits of installing utility-managed energy storage modules in residential and
commercial buildings in this state. The study must:
(1) estimate the potential value of on-site energy storage modules as a
load-management tool to reduce costs for individual customers and for the utility,
including, but not limited to, reductions in energy, particularly peaking and capacity costs;
(2) examine the interaction of energy storage modules with on-site solar photovoltaic
modules; and
(3) analyze existing barriers to the installation of on-site energy storage modules
by utilities, and examine strategies and design potential economic incentives, including
using utility funds expended under Minnesota Statutes, section 216B.241, to overcome
those barriers.
By January 1, 2014, the commissioner of commerce shall submit the study to the chairs
and ranking minority members of the legislative committees with jurisdiction over energy
policy and finance.
(b) The commissioner of commerce shall assess an amount, not to exceed $100,000,
under Minnesota Statutes, section 216B.241, subdivision 1e, for the purpose of completing
the study described in this section.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 22. VALUE OF SOLAR THERMAL STUDY.
(a) The commissioner of commerce shall contract with an independent consultant
selected through a request for proposal process to produce a report analyzing the potential
costs and benefits of expanding the installation of solar thermal projects, as defined in
Minnesota Statutes, section 216B.2411, subdivision 2, in residential and commercial
buildings in this state. The study must examine the potential for solar thermal projects to
reduce heating and cooling costs for individual customers and to reduce utilities' costs.
The study must also analyze existing barriers to the installation of solar thermal projects
by utilities, and examine strategies and design potential economic incentives, including
using utility funds expended under Minnesota Statutes, section 216B.241, to overcome
those barriers. By January 1, 2014, the commissioner of commerce shall submit the study
to the chairs and ranking minority members of the legislative committees with jurisdiction
over energy policy and finance.
(b) The commissioner of commerce shall assess an amount, not to exceed $100,000,
under Minnesota Statutes, section 216B.241, subdivision 1e, for the purpose of completing
the study described in this section.
EFFECTIVE DATE.This section is effective the day following final enactment.

ARTICLE 5

JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS

Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.

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

			2014		2015		Total
	General	$	158,050,000	$	137,714,000	$	295,764,000
	Workforce Development		20,246,000		20,246,000		40,492,000
	Remediation		700,000		700,000		1,400,000
	Workers' Compensation		22,784,000		22,574,000		45,358,000
	Total	$	201,780,000	$	181,234,000	$	383,014,000

Sec. 2. JOBS AND ECONOMIC DEVELOPMENT.

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

				APPROPRIATIONS
				Available for the Year
				Ending June 30
					2014		2015

Sec. 3. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

Subdivision 1.Total Appropriation

$

95,692,000

$

95,452,000

	Appropriations by Fund
		2014	2015
	General	75,775,000	75,535,000
	Remediation	700,000	700,000
	Workforce Development	19,217,000	19,217,000

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

Subd. 2.Business and Community Development

45,571,000

45,471,000

	Appropriations by Fund
	General	44,169,000	44,069,000
	Remediation	700,000	700,000
	Workforce Development	702,000	702,000

(a)(1) $15,000,000 each year is for
the Minnesota investment fund under
Minnesota Statutes, section 116J.8731. This
appropriation is available until spent.
(2) Of the amount available under clause
(1), up to $3,000,000 in fiscal year 2014
is for a loan to facilitate initial investment
in the purchase and operation of a
biopharmaceutical manufacturing facility.
This loan is not subject to the loan limitations
under Minnesota Statutes, section 116J.8731,
and shall be forgiven by the commissioner
of employment and economic development
upon verification of meeting performance
goals. Purchases related to and for the
purposes of this loan award must be made
between January 1, 2013, and June 30, 2015.
The amount under this clause is available
until expended.
(3) Of the amount available under clause
(1), up to $2,000,000 is available for a
loan for subsequent investment in the
biopharmaceutical facility project in clause
(2). The amount under this clause is available
until expended. Loan thresholds under clause
(2) must be achieved and maintained to
receive funding. Loans are not subject to the
loan limitations under Minnesota Statutes,
section 116J.8731, and shall be forgiven
by the commissioner of employment and
economic development upon verification
of meeting performance goals. Purchases
related to and for the purposes of loan awards
must be made during the biennium the loan
was received.
(4) Notwithstanding any law to the contrary,
the biopharmaceutical manufacturing facility
in this paragraph shall be deemed eligible
for the Minnesota job creation fund under
new Minnesota Statutes, section 116J.8748,
by having at least $25,000,000 in capital
investment and 190 retained employees.
(5) For purposes of clauses (1) to (4),
"biopharmaceutical" and "biologics" are
interchangeable and mean medical drugs
or medicinal preparations produced using
technology that uses biological systems,
living organisms, or derivatives of living
organisms, to make or modify products or
processes for specific use. The medical drugs
or medicinal preparations include but are not
limited to proteins, antibodies, nucleic acids,
and vaccines.
(b) $12,500,000 each year is for the
Minnesota job creation fund under Minnesota
Statutes, section 116J.8748. Of this amount,
the commissioner of employment and
economic development may use up to three
percent for administrative expenses. This
appropriation is available until spent.
(c) $1,000,000 each year is from the general
fund for grants under Minnesota Statutes,
section 116J.571, for the redevelopment
program. This appropriation is available
until spent.
(d) $12,000 each year is from the general
fund for a grant to the Upper Minnesota Film
Office.
(e) $325,000 each year is from the general
fund for the Minnesota Film and TV Board.
The appropriation in each year is available
only upon receipt by the board of $1 in
matching contributions of money or in-kind
contributions from nonstate sources for every
$3 provided by this appropriation, except that
each year up to $50,000 is available on July
1 even if the required matching contribution
has not been received by that date.
(f) $1,272,000 each year is from the
general fund for contaminated site cleanup
and development grants under Minnesota
Statutes, sections 116J.551 to 116J.558. This
appropriation is available until expended.
(g) $700,000 each year is from the
remediation fund for contaminated site
cleanup and development grants under
Minnesota Statutes, sections 116J.551 to
116J.558. This appropriation is available
until expended.
(h) $4,195,000 each year is from the general
fund for the Minnesota job skills partnership
program under Minnesota Statutes, sections
116L.01 to 116L.17. If the appropriation for
either year is insufficient, the appropriation
for the other year is available. This
appropriation is available until spent.
(i) $5,000,000 each year is from the general
fund for a grant to the Minnesota Film
and TV Board for the film production jobs
program under Minnesota Statutes, section
116U.26. This appropriation is available
until expended.
(j) $200,000 each year is from the general
fund for a grant to Enterprise Minnesota, Inc.,
for the small business growth acceleration
program under Minnesota Statutes, section
116O.115. This appropriation is available
until expended.
(k) $169,000 each year is from the general
fund for a grant to WomenVenture for
women's business development programs.
(l) $170,000 each year is from the general
fund and $50,000 each year is from the
workforce development fund for a grant to
the Metropolitan Economic Development
Association for continuing minority business
development programs in the metropolitan
area. This appropriation must be used for
providing free or reduced fee business
consulting services to minority entrepreneurs
and contractors.
(m)(1) $350,000 each year is from the
workforce development fund for a grant
to BioBusiness Alliance of Minnesota for
bioscience business development programs
to promote and position the state as a global
leader in bioscience business activities.
These funds may be used to create, recruit,
retain, and expand biobusiness activity
in Minnesota; implement the destination
2025 statewide plan; update a statewide
assessment of the bioscience industry and
the competitive position of Minnesota-based
bioscience businesses relative to other
states and other nations; and develop and
implement business and scenario-planning
models to create, recruit, retain, and expand
biobusiness activity in Minnesota.
(2) The BioBusiness Alliance must report
each year by February 15 to the committees
of the house of representatives and the senate
having jurisdiction over bioscience industry
activity in Minnesota on the use of funds;
the number of bioscience businesses and
jobs created, recruited, retained, or expanded
in the state since the last reporting period;
the competitive position of the biobusiness
industry; and utilization rates and results of
the business and scenario-planning models
and outcomes resulting from utilization of
the business and scenario-planning models.
(n) $35,000 each year is from the general
fund for a grant to the Minnesota Inventors
Congress, of which at least $3,500 must be
used for youth inventors.
(o) $100,000 each year is from the
workforce development fund for a grant
under Minnesota Statutes, section 116J.421,
to the Rural Policy and Development
Center at St. Peter, Minnesota. The grant
shall be used for research and policy
analysis on emerging economic and social
issues in rural Minnesota, to serve as a
policy resource center for rural Minnesota
communities, to encourage collaboration
across higher education institutions, to
provide interdisciplinary team approaches
to research and problem-solving in rural
communities, and to administer overall
operations of the center.
(p) $50,000 each year is from the general
fund for a grant to the North Central Small
Business Development Center at Central
Lakes College. This appropriation is
available until spent.
(q) $125,000 each year is from the general
fund for a grant to the South Central
Small Business Development Center at
Minnesota State University, Mankato. This
appropriation is available until spent.
(r) $144,000 each year is from the general
fund for a grant to the Neighborhood
Development Center. This appropriation is
available until spent.
(s) $135,000 each year is from the general
fund for a grant to the Arrowhead Economic
Opportunity Agency. This appropriation is
available until spent.
(t) $100,000 the first year is from the general
fund for a grant to the St. Paul East Side
Area Business Association (ESABA) for
development and support of a business
assessment plan for business growth in
St. Paul's east side. This is a onetime
appropriation and is available until spent.
(u) $135,000 each year is from the general
fund for a grant to Advocating Change
Together for training, technical assistance,
and resource materials for persons with
developmental and mental illness disabilities.
(v) $189,000 each year is from the general
fund for grants of $63,000 to eligible
organizations each year to assist in the
development of entrepreneurs and small
businesses. Each state grant dollar must be
matched with $1 of nonstate funds. Three
grants must be awarded to continue or
develop a program. This appropriation is
available until spent.

Subd. 3.Workforce Development

13,745,000

13,605,000

	Appropriations by Fund
	General	2,060,000	1,920,000
	Workforce Development	11,685,000	11,685,000

(a) $3,500,000 each year is from the
workforce development fund for the
Minnesota youth program under Minnesota
Statutes, sections 116L.56 and 116L.561.
(b) $1,000,000 each year is from the
workforce development fund for the
youthbuild program under Minnesota
Statutes, sections 116L.361 to 116L.366.
(c) $150,000 each year is from the general
fund and $300,000 each year is from the
workforce development fund for a grant
under Minnesota Statutes, section 116J.8747,
to Twin Cities RISE! to provide training to
hard-to-train individuals. Funds unexpended
in the first year are available for expenditure
in the second year.
(d) $200,000 each year is from the general
fund for a grant to Minnesota Diversified
Industries, Inc., to provide progressive
development and employment opportunities
for people with disabilities.
(e) $300,000 each year is from the general
fund and $175,000 each year is from the
workforce development fund for a grant
under Minnesota Statutes, section 268A.03,
to Rise, Inc. for the Minnesota Employment
Center for People Who are Deaf or Hard of
Hearing. Money not expended the first year
is available the second year.
(f) $300,000 each year is from the workforce
development fund for a grant to Lifetrack
Resources for its immigrant and refugee
collaborative program, including those
related to job-seeking skills and workplace
orientation, intensive job development,
functional work English, and on-site job
coaching.
(g) $1,475,000 each year is from the
workforce development fund for the
Opportunities Industrialization Center
programs.
(h) $1,150,000 each year is from the
workforce development fund for grants for
the Minneapolis summer youth employment
program. The grants shall be used to fund
up to 500 jobs for youth each summer. Of
this appropriation, $300,000 each year is for
a grant to the learn-to-earn summer youth
employment program. The commissioner
shall establish criteria for awarding the
grants. This appropriation is available in
either year of the biennium and is available
until spent.
(i) $750,000 each year is from the workforce
development fund for a grant to the
Minnesota Alliance of Boys and Girls
Clubs to administer a statewide project
of youth jobs skills development. This
project, which may have career guidance
components, including health and life skills,
is to encourage, train, and assist youth in
job-seeking skills, workplace orientation,
and job-site knowledge through coaching.
This grant requires a 25 percent match from
nonstate resources.
(j) $561,000 each year is from the workforce
development fund for grants to fund summer
youth employment in St. Paul. The grants
shall be used to fund up to 500 jobs for
youth each summer. The commissioner shall
establish criteria for awarding the grants.
This appropriation is available in either year
of the biennium and is available until spent.
(k) $350,000 each year is from the workforce
development fund for grants to provide
communication access and employment
support for a regional transition program
that specializes in providing culturally
appropriate transition services leading to
employment for deaf, hard-of-hearing, and
deaf-blind students.
(l) $263,000 each year is from the workforce
development fund for a grant to Central
Minnesota Jobs and Training Service. This
appropriation is available until spent.
(m) $200,000 each year is from the
workforce development fund for a grant to
Goodwill/Easter Seals for the business career
pathways program. This appropriation is
available until spent.
(n) $155,000 each year is from the workforce
development fund for a grant to the
International Institute of Minnesota for the
medical career pathway program. This
appropriation is available until spent.
(o) $160,000 each year is from the workforce
development fund for a grant to Project for
Pride in Living, Inc. This appropriation is
available until spent.
(p) $300,000 each year is from the
workforce development fund for a grant
to RESOURCE-Pathway to Advancement.
This appropriation is available until spent.
(q) $100,000 each year is from the workforce
development fund for a grant to SOAR
Careers-Duluth Manufacturing Pathways.
This appropriation is available until spent.
(r) $300,000 each year is from the workforce
development fund for a grant to Southwest
Minnesota Private Industry Council for
adult transitions to employment. This
appropriation is available until spent.
(s) $250,000 each year is from the
workforce development fund for a grant to
the African Development Center for job,
entrepreneur, and financial training programs
in Minneapolis, St. Cloud, Willmar,
Mankato, and Rochester. This is a onetime
appropriation and is available until spent.
(t) $135,000 each year is from the workforce
development fund for a grant to the
Northeast Minnesota Office of Job Training
for the Career EdVenture program. This
appropriation is available until spent.
(u) $135,000 each year is from the workforce
development fund for a grant to the South
Central Workforce Council/Minnesota
Valley Action Council. This appropriation is
available until spent.
(v) $135,000 each year is from the general
fund and $50,000 each year is from the
workforce development fund for a grant to
Northern Connections in Perham to operate
a workforce program that provides one-stop
supportive services to individuals as they
transition into the workforce.
(w) $1,070,000 the first year and $930,000
the second year are appropriated from
the general fund for the publication,
dissemination, and use of labor market
information under Minnesota Statutes,
section 116J.4011, and for pilot programs
in the workforce service areas specified in
article 7, section 20, to combine career and
higher education advising.

Subd. 4.General Support Services

1,018,000

1,018,000

Subd. 5.Minnesota Trade Office

2,142,000

2,142,000

(a) $300,000 each year is for the STEP grants
in Minnesota Statutes, section 116J.979.
(b) $180,000 each year is for the Invest
Minnesota marketing initiative in Minnesota
Statutes, section 116J.9801. Notwithstanding
any other law, this provision does not expire.

Subd. 6.Vocational Rehabilitation

27,191,000

27,191,000

	Appropriations by Fund
	General	20,361,000	20,361,000
	Workforce Development	6,830,000	6,830,000

(a) $10,800,000 each year is from the general
fund for the state's vocational rehabilitation
program under Minnesota Statutes, chapter
268A.
(b) $2,261,000 each year is from the general
fund for grants to centers for independent
living under Minnesota Statutes, section
268A.11.
(c) $5,120,000 each year from the general
fund and $6,830,000 each year from the
workforce development fund is for extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.16.
(d) $2,055,000 each year is from the general
fund for grants to programs that provide
employment support services to persons with
mental illness under Minnesota Statutes,
sections 268A.13 and 268A.14.

Subd. 7.Services for the Blind

5,925,000

5,925,000

Sec. 4. HOUSING FINANCE AGENCY

Subdivision 1.Total Appropriation

$

63,048,000

$

43,048,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.
This appropriation is for transfer to the
housing development fund for the programs
specified in this section. Except as otherwise
indicated, this transfer is part of the agency's
permanent budget base.

Subd. 2.Challenge Program

21,955,000

6,955,000

(a) This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.
Of this amount, $1,208,000 each year shall
be made available during the first 11 months
of the fiscal year exclusively for housing
projects for American Indians. Any funds not
committed to housing projects for American
Indians in the first 11 months of the fiscal year
shall be available for any eligible activity
under Minnesota Statues, section 462A.33.
(b) Of this amount, $15,000,000 is a onetime
appropriation and is targeted for housing in
communities and regions that have:
(1)(i) low housing vacancy rates; and
(ii) cooperatively developed a plan that
identifies current and future housing needs;
and
(2)(i) experienced job growth since 2005 and
have at least 2,000 jobs within the commuter
shed;
(ii) evidence of anticipated job expansion; or
(iii) a significant portion of area employees
who commute more than 30 miles between
their residence and their employment.
(c) Preference must be given among
comparable housing proposals to proposals
that include a meaningful contribution from
area employers that reduces the need for
deferred loan or grant funds from state
resources.
(d) The base funding for this program in the
2016-2017 biennium is $6,955,000 each year.

Subd. 3.Housing Trust Fund

15,555,000

10,555,000

(a) This appropriation is for deposit in the
housing trust fund account created under
Minnesota Statutes, section 462A.201, and
may be used for the purposes provided in
that section.
(b) Of this amount, $3,000,000 is a onetime
appropriation for temporary rental assistance
for families with school-age children who
have changed school or home at least
once in the last school year. The agency,
in consultation with the Department of
Education, may establish additional targeting
criteria.
(c) Of this amount, $2,000,000 is a onetime
appropriation for temporary rental assistance
for adults who are in the process of being
released from state correctional facilities
or on supervised release in the community
who are homeless or at risk of becoming
homeless. The agency, in consultation with
the Department of Corrections, may establish
additional targeting criteria to identify
those adults most at risk of reentering state
correctional facilities.
(d) Of this amount, $500,000 is a onetime
appropriation for a grant to the nonprofit
organization selected to administer the state
demonstration project for high-risk adults
established under Laws 2007, chapter 54,
article 1, section 19.
(e) The base funding for this program in fiscal
years 2016 and 2017 is $9,555,000 each year.

Subd. 4.Rental Assistance for Mentally Ill

3,638,000

3,638,000

This appropriation is for the rental housing
assistance program under Minnesota Statutes,
section 462A.2097. The base funding for
this program in the 2016-2017 biennium is
$2,638,000 each year.

Subd. 5.Family Homeless Prevention

9,465,000

9,465,000

This appropriation is for the family homeless
prevention and assistance programs under
Minnesota Statutes, section 462A.204.
The base funding for this program in the
2016-2017 biennium is $7,465,000 each year.

Subd. 6.Home Ownership Assistance Fund

797,000

797,000

This appropriation is for the home ownership
assistance program under Minnesota
Statutes, section 462A.21, subdivision 8.

Subd. 7.Affordable Rental Investment Fund

5,218,000

5,218,000

(a) This appropriation is for the affordable
rental investment fund program under
Minnesota Statutes, section 462A.21,
subdivision 8b, to finance the acquisition,
rehabilitation, and debt restructuring of
federally assisted rental property and for
making equity takeout loans under Minnesota
Statutes, section 462A.05, subdivision 39.
(b) The owner of federally assisted rental
property must agree to participate in
the applicable federally assisted housing
program and to extend any existing
low-income affordability restrictions on the
housing for the maximum term permitted.
The owner must also enter into an agreement
that gives local units of government,
housing and redevelopment authorities,
and nonprofit housing organizations the
right of first refusal if the rental property
is offered for sale. Priority must be given
among comparable federally assisted rental
properties to properties with the longest
remaining term under an agreement for
federal assistance. Priority must also be
given among comparable rental housing
developments to developments that are or
will be owned by local government units, a
housing and redevelopment authority, or a
nonprofit housing organization.
(c) The appropriation also may be used to
finance the acquisition, rehabilitation, and
debt restructuring of existing supportive
housing properties. For purposes of this
subdivision, "supportive housing" means
affordable rental housing with links to
services necessary for individuals, youth, and
families with children to maintain housing
stability.
(d) Of this amount, $250,000 each year is
for transfer to the capacity-building grants
in subdivision 10.
(e) The base funding for the affordable rental
investment fund program under Minnesota
Statutes, section 462A.21, subdivision 8b,
in fiscal years 2016 and 2017, is $4,218,000
each year.

Subd. 8.Housing Rehabilitation

2,772,000

2,772,000

This appropriation is for housing assistance
for the rehabilitation of single-family homes
under the housing rehabilitation program
under Minnesota Statutes, section 462A.05,
subdivision 14.

Subd. 9.Homeownership Education, Counseling, and Training

751,000

751,000

This appropriation is for the homeownership
education, counseling, and training program
under Minnesota Statutes, section 462A.209.

Subd. 10.Capacity-Building Grants

125,000

125,000

This appropriation is for nonprofit
capacity-building grants under Minnesota
Statutes, section 462A.21, subdivision 3b.

Subd. 11.Rental Rehabilitation

2,772,000

2,772,000

This appropriation is for the rental housing
rehabilitation loan program under Minnesota
Statutes, section 462A.05, subdivision 14.

Subd. 12.Transfers and Appropriations

(a) The remaining balance of appropriations
in Laws 2012, First Special Session chapter
1, article 1, section 7, for the economic
development and housing challenge program
that is unobligated to loans to homeowners
or rental property owners as of June 30,
2013, estimated to be $3,000,000 is canceled
to the general fund. By August 1, 2013,
the commissioner of the Housing Finance
Agency shall provide the commissioner of
management and budget with the information
necessary to determine the amount that is
uncommitted and available for transfer.
(b) The amount canceled to the general fund
under paragraph (a) is appropriated to the
Housing Finance Agency from the general
fund for transfer to the housing development
fund for the rehabilitation loan program
under Minnesota Statutes, section 462A.05,
subdivision 14. Until August 1, 2014,
priority in the use of these funds shall be
given to assistance for eligible homeowners
residing in the area included in DR-4069
whose homes were damaged as a result of
the storms and flooding that occurred June
14 to June 21, 2012.

Sec. 5. DEPARTMENT OF LABOR AND INDUSTRY

Subdivision 1.Total Appropriation

$

22,866,000

$

22,866,000

	Appropriations by Fund
		2014	2015
	General	966,000	966,000
	Workers' Compensation	20,871,000	20,871,000
	Workforce Development	1,029,000	1,029,000

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

Subd. 2.Workers' Compensation

10,678,000

10,678,000

This appropriation is from the workers'
compensation fund.
$200,000 each year is for grants to the
Vinland Center for rehabilitation services.
Grants shall be distributed as the department
refers injured workers to the Vinland Center
for rehabilitation services.

Subd. 3.Labor Standards and Apprenticeship

1,995,000

1,995,000

	Appropriations by Fund
	General	966,000	966,000
	Workforce Development	1,029,000	1,029,000

(a) $816,000 each year is from the
general fund for the labor standards and
apprenticeship program.
(b) $150,000 each year is from the general
fund for a child labor initiative for expanding
education and outreach to high schools and
targeted industries to ensure minors entering
the workforce are safe.
(c) $879,000 each year is appropriated from
the workforce development fund for the
apprenticeship program under Minnesota
Statutes, chapter 178, and includes
$100,000 each year for labor education and
advancement program grants and to expand
and promote registered apprenticeship
training in nonconstruction trade programs.
(d) $150,000 each year is appropriated
from the workforce development fund for
prevailing wage enforcement.

Subd. 4.Workplace Safety

4,154,000

4,154,000

This appropriation is from the workers'
compensation fund.

Subd. 5.General Support

6,039,000

6,039,000

This appropriation is from the workers'
compensation fund.

Sec. 6. EXPLORE MINNESOTA TOURISM

$

15,888,000

$

15,888,000

To develop maximum private sector
involvement in tourism, $1,000,000 in fiscal
year 2014 and $1,000,000 in fiscal year 2015
must be matched by Explore Minnesota
Tourism from nonstate sources. Each $1 of
state incentive must be matched with $6 of
private sector funding. Cash match is defined
as revenue to the state or documented cash
expenditures directly expended to support
Explore Minnesota Tourism programs. Up
to one-half of the private sector contribution
may be in-kind or soft match. The incentive
in fiscal year 2014 shall be based on fiscal
year 2013 private sector contributions. The
incentive in fiscal year 2015 shall be based on
fiscal year 2014 private sector contributions.
This incentive is ongoing:
(1) funding for the marketing grants is
available either year of the biennium.
Unexpended grant funds from the first year
are available in the second year; and
(2) unexpended money from the general
fund appropriations made under this section
does not cancel but must be placed in a
special marketing account for use by Explore
Minnesota Tourism for additional marketing
activities.
Base funding for Explore Minnesota Tourism
shall be $15,968,000 each year in the fiscal
year 2016-2017 biennium.
$100,000 each year is for a grant to the
Northern Lights International Music Festival.

Sec. 7. BUREAU OF MEDIATION SERVICES

$

1,873,000

$

1,777,000

(a) $68,000 each year is for grants to area
labor management committees. Grants may
be awarded for a 12-month period beginning
July 1 each year. Any unencumbered balance
remaining at the end of the first year does not
cancel but is available for the second year.
(b) $100,000 in fiscal year 2014 is
appropriated from the general fund to the
Bureau of Mediation Services for transfer
to the Office of Enterprise Technology to
develop a new business management system
for case and document management. This is
a onetime appropriation and is available for
spending until June 30, 2015. Any ongoing
information technology support or costs for
this application will be incorporated into the
service level agreement and will be paid to
the Office of Enterprise Technology by the
Bureau of Mediation Services under the rates
and mechanism specified in that agreement.
Of this amount, $25,000 each year is added
to the Bureau of Mediation Services base
budget to cover the information technology
support costs for this application.

Sec. 8. WORKERS' COMPENSATION COURT OF APPEALS

$

1,913,000

$

1,703,000

This appropriation is from the workers'
compensation fund.
Of this appropriation, $210,000 is a
onetime appropriation and is available for
spending until June 30, 2015. $100,000 in
fiscal year 2014 is appropriated from the
workers' compensation fund to the Workers'
Compensation Court of Appeals for transfer
to the Office of Enterprise Technology to
develop a paperless case management system
and to ensure that services and hardware
are accessible and compatible with systems
with which the Workers' Compensation
Court of Appeals must interact. This is a
onetime appropriation and is available for
spending until June 30, 2015. Any ongoing
information technology support or costs for
this application will be incorporated into the
service level agreement and will be paid to
the Office of Enterprise Technology by the
Workers' Compensation Court of Appeals
under the rates and mechanism specified in
that agreement.

ARTICLE 6

LABOR AND INDUSTRY

    Section 1. Minnesota Statutes 2012, section 299F.011, is amended by adding a
subdivision to read:
    Subd. 4d. Single-family dwelling; fire sprinklers. (a) The State Building Code,
the State Fire Code, or a political subdivision of the state by code, by ordinance, as a
condition of receiving public funding, or in any other way, must not require the installation
of fire sprinklers, any fire sprinkler system components, or automatic fire-extinguishing
equipment or devices in any new or existing single-family detached dwelling unit.
(b) This subdivision does not affect or limit a requirement for smoke or fire
detectors, alarms, or their components.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 2. Minnesota Statutes 2012, section 326.02, subdivision 5, is amended to read:
    Subd. 5. Limitation. The provisions of sections 326.02 to 326.15 shall not apply
to the preparation of plans and specifications for the erection, enlargement, or alteration
of any building or other structure by any person, for that person's exclusive occupancy
or use, unless such occupancy or use involves the public health or safety or the health
or safety of the employees of said person, or of the buildings listed in section 326.03,
subdivision 2 , nor to any detailed or shop plans required to be furnished by a contractor
to a registered engineer, landscape architect, architect, or certified interior designer,
nor to any standardized manufactured product, nor to any construction superintendent
supervising the execution of work designed by an architect, landscape architect, engineer,
or certified interior designer licensed or certified in accordance with section 326.03, nor
to the planning for and supervision of the construction and installation of work by an
electrical or elevator contractor or master plumber as defined in and licensed pursuant to
chapter 326B, where such work is within the scope of such licensed activity and not
within the practice of professional engineering, or architecture, or where the person does
not claim to be a certified interior designer as defined in subdivision 2, 3, or 4b.

    Sec. 3. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 9. Direct supervision. "Direct supervision" means:
(1) an unlicensed individual is being directly supervised by an individual licensed
to perform the elevator work being supervised during the entire time the unlicensed
individual is performing elevator work;
(2) the licensed individual is physically present at the location where the unlicensed
individual is performing elevator work and immediately available to the unlicensed
individual at all times for assistance and direction;
(3) the licensed individual shall review the elevator work performed by the
unlicensed individual before the elevator work is operated; and
(4) the licensed individual is able to and does determine that all elevator work
performed by the unlicensed individual is performed in compliance with the elevator code.

    Sec. 4. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 10. Elevator contractor. "Elevator contractor" means a licensed contractor
whose responsible licensed individual is a master elevator constructor. An elevator
contractor license does not itself qualify its holder to perform or supervise elevator work
authorized by holding a personal license issued by the commissioner.

    Sec. 5. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 11. Limited elevator contractor. "Limited elevator contractor" means a
licensed contractor whose responsible licensed individual is a limited master elevator
constructor. A limited elevator contractor or its employees may only install, test, or alter
residential elevators, platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited
use or limited application elevator equipment, conveyors, and special purpose personnel
elevators.

    Sec. 6. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 11a. Limited elevator work. "Limited elevator work" means the installing,
maintaining, altering, repairing, testing, planning, or laying out of residential elevators,
platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited use or limited
application elevator equipment, conveyors, and special purpose personnel elevators
as covered by Minnesota Rules, chapters 1307 and 1315. Limited elevator work also
includes electrical wiring on the load side of the elevator equipment disconnect and the
decommissioning of elevator equipment to enable safe removal.

    Sec. 7. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 12. Elevator work. "Elevator work" means the installing, maintaining,
altering, repairing, testing, planning, or laying out of elevator apparatus or equipment as
covered by Minnesota Rules, chapters 1307 and 1315. Elevator work also includes the
disconnection of electrical wiring on the load side of the elevator disconnect and the
decommissioning of elevator equipment to enable safe removal.

    Sec. 8. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 13. Master elevator constructor. "Master elevator constructor" means
an individual having the necessary qualifications, training, experience, and technical
knowledge to properly plan, lay out, supervise, and perform the installation, maintenance,
altering, testing, wiring, and repair of apparatus and equipment for elevators, including
electrical wiring on the load side of the elevator equipment disconnect and who is licensed
as a master elevator constructor by the commissioner.

    Sec. 9. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 14. Limited master elevator constructor. "Limited master elevator
constructor" means an individual having the necessary qualifications, training, experience,
and technical knowledge to properly plan, lay out, supervise, and perform the testing,
altering, installation, maintenance, and repair of wiring, apparatus, and equipment for
residential elevators, platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited
use or limited application elevator equipment, conveyors, and special purpose personnel
elevators, including wiring on the load side of the elevator equipment disconnect and who
is licensed as a limited master elevator constructor by the commissioner.

    Sec. 10. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 14a. Limited journeyman elevator constructor. "Limited journeyman
elevator constructor" means an individual having the necessary qualifications, training,
experience, and technical knowledge to install, maintain, alter, test, and repair apparatus
and equipment for residential elevators, platform lifts, stairway chairlifts, dumbwaiters,
material lifts, limited use or limited application elevator equipment, conveyors and special
purpose personnel elevators, including electrical wiring on the load side of the elevator
equipment disconnect and who is licensed as a limited journeyman elevator constructor by
the commissioner.

    Sec. 11. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 15. Journeyman elevator constructor. "Journeyman elevator constructor"
means an individual having the necessary qualifications, training, experience, and
technical knowledge to install, maintain, alter, test, and repair apparatus and equipment for
elevators, including electrical wiring on the load side of the elevator equipment disconnect
and who is licensed as a journeyman elevator constructor by the commissioner.

    Sec. 12. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 16. Registered unlicensed elevator constructor. "Registered unlicensed
elevator constructor" means an individual who has registered with the department but is
not licensed by the commissioner to perform elevator work.

    Sec. 13. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 17. Residential dwelling. "Residential dwelling" is a single dwelling unit
that is contained in a one-family, two-family, or multifamily dwelling. A residential
dwelling also includes outdoor space at a one-family dwelling.

    Sec. 14. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 18. Responsible licensed individual. "Responsible licensed individual"
means an individual licensed as a master elevator constructor or limited master elevator
constructor who is identified as the responsible licensed individual on an elevator
contractor license application.

    Sec. 15. [326B.164] LICENSES.
    Subdivision 1. Master elevator constructor. (a) Except as otherwise provided by
law, no individual shall perform or supervise elevator work, unless:
(1) the individual is licensed by the commissioner as a master elevator constructor;
and
(2) the elevator work is for a licensed elevator contractor and the individual is an
employee, partner, or officer of, or is the licensed contractor.
(b) An applicant for a master elevator constructor license shall:
(1) have at least one year of experience, acceptable to the commissioner, as a
licensed journeyman elevator constructor; or
(2) have at least six years' experience, acceptable to the commissioner, in planning
for, laying out, supervising, and installing apparatus, equipment, and wiring for elevators.
(c) Individuals licensed as master elevator constructors under section 326B.33,
subdivision 11, as of December 31, 2013, shall not be required to pass an examination
under this section but, effective January 1, 2014, shall be subject to the requirements of
sections 326B.163 to 326B.191.
(d) Except for the initial license term, as a condition of license renewal, master
elevator constructors must attain a minimum of 16 hours of continuing education credit
approved by the commissioner every renewal period. Not less than 12 hours shall be based
on the Minnesota Elevator Code or elevator technology, and not less than four hours shall
be based on the National Electrical Code.
    Subd. 2. Limited master elevator constructor. (a) Except as otherwise provided
by law, no individual shall perform or supervise elevator work on residential elevators,
platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited use or limited
application elevator equipment, conveyors, and special purpose personnel elevators, unless:
(1) the individual is licensed by the commissioner as a limited master elevator
constructor; and
(2) the elevator work is for a limited elevator contractor and the individual is an
employee, partner, or officer of, or is the licensed contractor.
(b) An applicant for a limited master elevator constructor license shall have at
least three years of experience, acceptable to the commissioner, in installing apparatus,
equipment, and wiring for elevators.
(c) Except for the initial license term, as a condition of license renewal, limited
master elevator constructors must attain a minimum of eight hours of continuing education
credit approved by the commissioner every renewal period. Not less than six hours shall
be based on the Minnesota Elevator Code or elevator technology, and not less than two
hours on the National Electrical Code.
    Subd. 3. Journeyman elevator constructor. (a) Except as otherwise provided
by law, no individual shall perform and supervise elevator work except for planning or
laying out of elevator work, unless:
(1) the individual is licensed by the commissioner as a journeyman elevator
constructor; and
(2) the elevator work is for an elevator contractor, and the individual is an employee,
partner, or officer of the licensed elevator contractor.
(b) An applicant for a journeyman elevator constructor license shall have completed
a four-year elevator mechanics apprenticeship registered with the United States
Department of Labor or worked at least 9,000 hours in five consecutive years for a
licensed elevator contractor, acceptable to the commissioner, installing, maintaining,
modernizing, testing, wiring, and repairing elevators.
(c) Individuals licensed as journeyman elevator constructors under section 326B.33,
subdivision 8, as of December 31, 2013, shall not be required to pass an examination
under this section but, effective January 1, 2014, shall be subject to the requirements of
sections 326B.163 to 326B.191.
(d) As a condition of license renewal, journeyman elevator constructors must attain
a minimum of 16 hours of continuing education credit approved by the commissioner
every renewal period. Not less than 12 hours shall be based on the Minnesota Elevator
Code or elevator technology, and not less than four hours shall be based on the National
Electrical Code.
    Subd. 3a. Limited journeyman elevator constructor. (a) Except as otherwise
provided by law, no individual shall perform or supervise elevator work on residential
elevators, platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited use
or limited application elevator equipment, conveyors, and special purpose personnel
elevators, except for planning or laying out of elevator work, unless:
(1) the individual is licensed by the commissioner as a limited journeyman elevator
constructor; and
(2) the elevator work is for a limited elevator contractor or an elevator contractor,
and the individual is an employee, partner, or officer of the licensed limited elevator
contractor or licensed elevator contractor.
(b) An applicant for a limited journeyman elevator constructor license shall have
at least two years of experience, acceptable to the commissioner, in installing apparatus,
equipment, and wiring for elevators.
(c) Except for the initial license term, as a condition of license renewal, limited
journeyman elevator constructors must attain a minimum of eight hours of continuing
education credit approved by the commissioner every renewal period. Not less than six
hours shall be based on the Minnesota Elevator Code or elevator technology, and not less
than two hours on the National Electrical Code.
    Subd. 4. Registered unlicensed elevator constructor. (a) An unlicensed individual
shall not perform elevator work, unless the individual has first registered with the
department as an unlicensed elevator constructor. Except as allowed by subdivision 12, a
registered unlicensed elevator constructor shall not perform elevator work unless the work
is performed under the direct supervision of an individual actually licensed to perform
such work. The licensed elevator constructor and the registered unlicensed elevator
constructor must be employed by the same employer. Unlicensed individuals shall not
supervise the performance of elevator work or make assignments of elevator work to
unlicensed individuals. Licensed elevator constructors shall provide direct supervision for
no more than two registered unlicensed elevator constructors.
(b) Notwithstanding any other provision of this section, no individual other than a
master elevator constructor or limited master elevator constructor shall plan or lay out
elevator wiring, apparatus, or equipment.
(c) Contractors employing registered unlicensed elevator constructors performing
elevator work shall maintain records establishing compliance with this subdivision that
shall identify all unlicensed individuals performing elevator work and shall permit the
department to examine and copy all such records.
(d) When a licensed elevator constructor supervises the elevator work of an
unlicensed individual, the licensed elevator constructor is responsible for ensuring that the
elevator work complies with this section and the Minnesota Elevator Code.
(e) A registered unlicensed elevator constructor with a minimum of one year
experience may perform the following maintenance tasks for elevator equipment without
being provided with direct supervision: oiling, cleaning, greasing, painting, relamping,
and replacing of escalator and moving walk comb teeth.
    Subd. 5. Registration of unlicensed individuals. (a) Unlicensed individuals
performing elevator work for a contractor shall register with the department in the manner
prescribed by the commissioner. Experience credit for elevator work performed in
Minnesota after January 1, 2009, by an applicant for a license identified in this section
shall not be granted where the applicant has not registered with the department or is
not licensed by the department.
(b) As a condition of renewal of registration, unlicensed individuals shall attain a
minimum of two hours of continuing education credit, approved by the commissioner,
every renewal period. The continuing education course shall be based on the Minnesota
Elevator Code or elevator technology.
(c) Individuals registered under section 326B.33, subdivision 13, whose registration
expires after July 31, 2013, shall be subject to the registration requirements of this
subdivision and the requirements of sections 326B.163 to 326B.191.
    Subd. 6. Contractor's license required. (a) No individual, other than an employee,
partner, or officer of a licensed contractor, as defined by section 326B.163, subdivision
10, shall perform or offer to perform elevator work with or without compensation, unless
the individual obtains a contractor's license. A contractor's license does not of itself
qualify its holder to perform or supervise the elevator work authorized by holding any
class of personal license.
(b) Companies licensed under section 326B.33, subdivision 14, as of July 31, 2013,
shall not be required to comply with this subdivision.
    Subd. 7. Bond required. As a condition of licensing, each contractor shall give
and maintain bond to the state in the sum of $25,000, conditioned upon the faithful and
lawful performance of all work contracted for or performed by the contractor within the
state of Minnesota, and such bond shall be for the benefit of persons injured or suffering
financial loss by reason of failure of such performance. The bond shall be filed with
the commissioner and shall be in lieu of all other license bonds to any other political
subdivision. The bond shall be written by a corporate surety licensed to do business
in the state of Minnesota.
    Subd. 8. Insurance required. Each elevator contractor shall have and maintain
in effect general liability insurance, which includes premises and operations insurance
and products and completed operations insurance, with limits of at least $100,000 per
occurrence, $300,000 aggregate limit for bodily injury, and property damage insurance
with limits of at least $50,000, or a policy with a single limit for bodily injury and property
damage of $300,000 per occurrence and $300,000 aggregate limits. The insurance shall be
written by an insurer licensed to do business in the state of Minnesota, and each contractor
shall maintain on file with the commissioner a certificate evidencing such insurance. In the
event of a policy cancellation, the insurer shall send written notice to the commissioner at
the same time that a cancellation request is received from or a notice is sent to the insured.
    Subd. 9. Employment of responsible individual. (a) Each elevator contractor
must designate a responsible master elevator constructor or limited master elevator
constructor who shall be the responsible individual for the performance of all elevator
work in accordance with the requirements of sections 326B.163 to 326B.191, all rules
adopted under these sections, and all orders issued under section 326B.082. The classes of
work that a licensed contractor is authorized to perform shall be limited to the classes of
work that the responsible individual is allowed to perform.
(b) When a contractor's license is held by an individual, sole proprietorship,
partnership, limited liability company, or corporation, and the individual, proprietor, one
of the partners, one of the members, or an officer of the corporation, respectively, is not the
responsible master elevator constructor or limited master elevator constructor, all elevator
permits shall be submitted by the responsible master elevator constructor or limited
master elevator constructor. If the contractor is an individual or a sole proprietorship,
the responsible master or limited master elevator constructor must be the individual,
proprietor, or managing employee. If the contractor is a partnership, the responsible
master or limited master elevator constructor must be a general partner or managing
employee. If the licensed contractor is a limited liability company, the responsible master
or limited master elevator constructor must be a chief manager or managing employee.
If the contractor is a corporation, the responsible master or limited master elevator
constructor must be an officer or managing employee. If the responsible master or limited
master elevator constructor is a managing employee, the responsible individual must be
actively engaged in performing elevator work on behalf of the contractor and cannot be
employed in any capacity performing elevator work for any other elevator contractor or
employer. An individual may be the responsible individual for only one contractor.
(c) All applications and renewals for contractor licenses shall include a verified
statement that the applicant and responsible individual are in compliance with this
subdivision.
    Subd. 10. Examination. In addition to the other requirements described in this
section and sections 326B.091 to 326B.098, as a precondition to issuance of a personal
license, each applicant must pass a written or oral examination developed and administered
by the commissioner to ensure the competence of each applicant for license. An oral
examination shall be administered only to an applicant who furnishes a written statement
from a certified teacher or other professional, trained in the area of reading disabilities,
stating that the applicant has a specific reading disability that would prevent the applicant
from performing satisfactorily on a written test. The oral examination shall be structured
so that an applicant who passes the examination will not impair the applicant's own safety
or that of others while acting as a licensed individual.
    Subd. 11. License, registration, and renewal fees; expiration. (a) Unless revoked
or suspended under this chapter, all licenses issued or renewed under this section expire on
the following schedule:
(1) master licenses expire March 1 of each odd-numbered year after issuance or
renewal;
(2) elevator contractor licenses expire March 1 of each even-numbered year after
issuance or renewal;
(3) journeyman elevator constructor licenses expire two years from the date of
original issuance and every two years thereafter; and
(4) registrations of unlicensed individuals expire one year from the date of original
issuance and every year thereafter.
(b) For purposes of calculating license fees and renewal license fees required under
section 326B.092:
(1) the registration of an unlicensed individual under subdivision 5 shall be
considered an entry-level license;
(2) the journeyman elevator constructor and the limited journeyman elevator
constructor shall be considered a journeyman license;
(3) the master elevator constructor and limited master elevator constructor licenses
shall be considered master licenses; and
(4) an elevator contractor license shall be considered a business license.
    Subd. 12. Exemption from licensing. Employees of a licensed elevator contractor
or licensed limited elevator contractor are not required to hold or obtain a license
under this section or be provided with direct supervision by a licensed master elevator
constructor, licensed limited master elevator constructor, licensed elevator constructor,
or licensed limited elevator constructor to install, maintain, or repair platform lifts and
stairway chairlifts. Unlicensed employees performing elevator work under this exemption
must comply with subdivision 5. This exemption does not include the installation,
maintenance, repair, or replacement of electrical wiring for elevator equipment.
    Subd. 13. Reciprocity. (a) The commissioner may enter into reciprocity agreements
for personal licenses with another state and issue a personal license without requiring the
applicant to pass an examination provided the applicant:
(1) submits an application under this section;
(2) pays the application and examination fee and license fee required under section
326B.092; and
(3) holds a valid comparable license in the state participating in the agreement.
(b) Reciprocity agreements are subject to the following:
(1) the parties to the agreement must administer a statewide licensing program that
includes examination and qualifying experience or training comparable to Minnesota's;
(2) the experience and training requirements under which an individual applicant
qualified for examination in the qualifying state must be deemed equal to or greater than
required for an applicant making application in Minnesota at the time the applicant
acquired the license in the qualifying state;
(3) the applicant must have acquired the license in the qualifying state through an
examination deemed equivalent to the same class of license examination in Minnesota.
A lesser class of license may be granted where the applicant has acquired a greater
class of license in the qualifying state, and the applicant otherwise meets the conditions
of this subdivision;
(4) at the time of application, the applicant must hold a valid license in the qualifying
state and have held the license continuously for at least one year before making application
in Minnesota;
(5) an applicant is not eligible for a license under this subdivision if the applicant has
failed the same or greater class of license examination in Minnesota, or if the applicant's
license of the same or greater class has been revoked or suspended; and
(6) an applicant who has failed to renew a personal license for two years or more
after its expiration is not eligible for a license under this subdivision.

    Sec. 16. Minnesota Statutes 2012, section 326B.184, subdivision 1, is amended to read:
    Subdivision 1. Permits. No person may construct, install, alter, repair, or remove
an elevator without first filing an application for a permit with the department or a
municipality authorized by subdivision 4 to inspect elevators. A permit issued by the
department is valid for work commenced within 12 months of application and completed
within two years of application. Where no work is commenced within 12 months of
application, an applicant may cancel the permit and request a refund of inspection fees.

    Sec. 17. Minnesota Statutes 2012, section 326B.184, is amended by adding a
subdivision to read:
    Subd. 1a. Department permit and inspection fees. (a) The department permit and
inspection fees to construct, install, alter, repair, or remove an elevator are as follows:
(1) the permit fee is $100;
(2) the inspection fee is 0.015 of the total cost of the permitted work for labor and
materials, including related electrical and mechanical equipment. The inspection fee
covers two inspections. The inspection fee for additional inspections is $80 per hour;
(3) when inspections scheduled by the permit submitter are not able to be completed
because the work is not complete, a fee equal to two hours at the hourly rate of $80 must
be paid by the permit submitter; and
(4) when the owner or permit holder requests inspections be performed outside of
normal work hours or on weekends or holidays, an hourly rate of $120 in addition to
the inspection fee must be paid.
(b) The department fees for inspection of existing elevators when requested by the
elevator owner or as a result of an accident resulting in personal injury are at an hourly rate
of $80 during normal work hours or $120 outside of normal work hours or on weekends or
holidays, with a one-hour minimum.
EFFECTIVE DATE.This section is effective January 1, 2014.

    Sec. 18. Minnesota Statutes 2012, section 326B.184, subdivision 2, is amended to read:
    Subd. 2. Operating permits and fees; periodic inspections. (a) No person may
operate an elevator without first obtaining an annual operating permit from the department
or a municipality authorized by subdivision 4 to issue annual operating permits. A $100
annual operating permit fee must be paid to the department for each annual operating
permit issued by the department, except that the original annual operating permit must
be included in the permit fee for the initial installation of the elevator. Annual operating
permits must be issued at 12-month intervals from the date of the initial annual operating
permit. For each subsequent year, an owner must be granted an annual operating permit
for the elevator upon the owner's or owner's agent's submission of a form prescribed by
the commissioner and payment of the $100 fee. Each form must include the location of
the elevator, the results of any periodic test required by the code, and any other criteria
established by rule. An annual operating permit may be revoked by the commissioner upon
an audit of the periodic testing results submitted with the application or a failure to comply
with elevator code requirements, inspections, or any other law related to elevators. Except
for an initial operating permit fee, hand-powered manlifts and electric endless belt manlifts,
and vertical reciprocating conveyors are not subject to a subsequent operating permit fee.
(b) All elevators are subject to periodic inspections by the department or a
municipality authorized by subdivision 4 to perform periodic inspections, except that
hand-powered manlifts and electric endless belt manlifts are exempt from periodic
inspections. Periodic inspections by the department shall be performed at the following
intervals:
(1) a special purpose personnel elevator is subject to inspection not more than once
every five years;
(2) an elevator located within a house of worship that does not have attached school
facilities is subject to inspection not more than once every three years; and
(3) all other elevators are subject to inspection not more than once each year.

    Sec. 19. Minnesota Statutes 2012, section 326B.187, is amended to read:
326B.187 RULES.
    The commissioner may adopt rules for the following purposes:
    (1) to establish minimum qualifications for elevator inspectors that must include
possession of a current elevator constructor electrician's license issued by the department
and proof of successful completion of the national elevator industry education program
examination or equivalent experience;
    (2) to establish minimum qualifications for limited elevator inspectors;
    (3) to establish criteria for the qualifications of elevator contractors;
    (4) to establish elevator standards under sections 326B.106, subdivisions 1 and 3,
and 326B.13;
    (5) to establish procedures for appeals of decisions of the commissioner under
chapter 14 and procedures allowing the commissioner, before issuing a decision, to seek
advice from the elevator trade, building owners or managers, and others knowledgeable in
the installation, construction, and repair of elevators; and
    (6) to establish requirements for the registration of all elevators.

    Sec. 20. Minnesota Statutes 2012, section 326B.33, subdivision 19, is amended to read:
    Subd. 19. License, registration, and renewal fees; expiration. (a) Unless
revoked or suspended under this chapter, all licenses issued or renewed under this section
expire on the date specified in this subdivision. Master licenses expire March 1 of each
odd-numbered year after issuance or renewal. Electrical contractor licenses expire March
1 of each even-numbered year after issuance or renewal. Technology system contractor
and satellite system contractor licenses expire August 1 of each even-numbered year after
issuance or renewal. All other personal licenses expire two years from the date of original
issuance and every two years thereafter. Registrations of unlicensed individuals expire
one year from the date of original issuance and every year thereafter.
(b) For purposes of calculating license fees and renewal license fees required under
section 326B.092:
(1) the registration of an unlicensed individual under subdivision 12 shall be
considered an entry level license;
(2) the following licenses shall be considered journeyman licenses: Class A
journeyman electrician, Class B journeyman electrician, Class A installer, Class B
installer, elevator constructor, lineman, maintenance electrician, satellite system installer,
and power limited technician;
(3) the following licenses shall be considered master licenses: Class A master
electrician, and Class B master electrician, and master elevator constructor; and
(4) the following licenses shall be considered business licenses: Class A electrical
contractor, Class B electrical contractor, elevator contractor, satellite system contractor,
and technology systems contractor.
(c) For each filing of a certificate of responsible person by an employer, the fee is
$100.

    Sec. 21. Minnesota Statutes 2012, section 326B.33, subdivision 21, is amended to read:
    Subd. 21. Exemptions from licensing. (a) An individual who is a maintenance
electrician is not required to hold or obtain a license under sections 326B.31 to 326B.399 if:
    (1) the individual is engaged in the maintenance and repair of electrical equipment,
apparatus, and facilities that are owned or leased by the individual's employer and that are
located within the limits of property operated, maintained, and either owned or leased by
the individual's employer;
    (2) the individual is supervised by:
    (i) the responsible master electrician for a contractor who has contracted with the
individual's employer to provide services for which a contractor's license is required; or
    (ii) a licensed master electrician, a licensed maintenance electrician, an electrical
engineer, or, if the maintenance and repair work is limited to technology circuits or
systems work, a licensed power limited technician; and
    (3) the individual's employer has on file with the commissioner a current certificate
of responsible person, signed by the responsible master electrician of the contractor, the
licensed master electrician, the licensed maintenance electrician, the electrical engineer, or
the licensed power limited technician, and stating that the person signing the certificate
is responsible for ensuring that the maintenance and repair work performed by the
employer's employees complies with the Minnesota Electrical Act and the rules adopted
under that act. The employer must pay a filing fee to file a certificate of responsible person
with the commissioner. The certificate shall expire two years from the date of filing. In
order to maintain a current certificate of responsible person, the employer must resubmit a
certificate of responsible person, with a filing fee, no later than two years from the date
of the previous submittal.
    (b) Employees of a licensed electrical or technology systems contractor or other
employer where provided with supervision by a master electrician in accordance with
subdivision 1, or power limited technician in accordance with subdivision 7, paragraph
(a), clause (1), are not required to hold a license under sections 326B.31 to 326B.399
for the planning, laying out, installing, altering, and repairing of technology circuits or
systems except planning, laying out, or installing:
    (1) in other than residential dwellings, class 2 or class 3 remote control circuits that
control circuits or systems other than class 2 or class 3, except circuits that interconnect
these systems through communication, alarm, and security systems are exempted from
this paragraph;
    (2) class 2 or class 3 circuits in electrical cabinets, enclosures, or devices containing
physically unprotected circuits other than class 2 or class 3; or
    (3) technology circuits or systems in hazardous classified locations as covered by
chapter 5 of the National Electrical Code.
    (c) Companies and their employees that plan, lay out, install, alter, or repair class
2 and class 3 remote control wiring associated with plug or cord and plug connected
appliances other than security or fire alarm systems installed in a residential dwelling are
not required to hold a license under sections 326B.31 to 326B.399.
    (d) Heating, ventilating, air conditioning, and refrigeration contractors and their
employees are not required to hold or obtain a license under sections 326B.31 to 326B.399
when performing heating, ventilating, air conditioning, or refrigeration work as described
in section 326B.38.
    (e) Employees of any electrical, communications, or railway utility, cable
communications company as defined in section 238.02, or a telephone company as defined
under section 237.01 or its employees, or of any independent contractor performing work
on behalf of any such utility, cable communications company, or telephone company, shall
not be required to hold a license under sections 326B.31 to 326B.399:
    (1) while performing work on installations, materials, or equipment which are owned
or leased, and operated and maintained by such utility, cable communications company, or
telephone company in the exercise of its utility, antenna, or telephone function, and which
    (i) are used exclusively for the generation, transformation, distribution, transmission,
or metering of electric current, or the operation of railway signals, or the transmission
of intelligence and do not have as a principal function the consumption or use of electric
current or provided service by or for the benefit of any person other than such utility, cable
communications company, or telephone company, and
    (ii) are generally accessible only to employees of such utility, cable communications
company, or telephone company or persons acting under its control or direction, and
    (iii) are not on the load side of the service point or point of entrance for
communication systems;
    (2) while performing work on installations, materials, or equipment which are a part
of the street lighting operations of such utility; or
    (3) while installing or performing work on outdoor area lights which are directly
connected to a utility's distribution system and located upon the utility's distribution poles,
and which are generally accessible only to employees of such utility or persons acting
under its control or direction.
    (f) An owner shall not be required to hold or obtain a license under sections 326B.31
to 326B.399.
(g) Companies and their employees licensed under section 326B.164 shall not be
required to hold or obtain a license under sections 326B.31 to 326B.399, while performing
elevator work.

    Sec. 22. Minnesota Statutes 2012, section 326B.36, subdivision 7, is amended to read:
    Subd. 7. Exemptions from inspections. Installations, materials, or equipment shall
not be subject to inspection under sections 326B.31 to 326B.399:
    (1) when owned or leased, operated and maintained by any employer whose
maintenance electricians are exempt from licensing under sections 326B.31 to 326B.399,
while performing electrical maintenance work only as defined by rule;
    (2) when owned or leased, and operated and maintained by any electrical,
communications, or railway utility, cable communications company as defined in section
238.02 , or telephone company as defined under section 237.01, in the exercise of its
utility, antenna, or telephone function; and
    (i) are used exclusively for the generations, transformation, distribution,
transmission, or metering of electric current, or the operation of railway signals, or the
transmission of intelligence, and do not have as a principal function the consumption or
use of electric current by or for the benefit of any person other than such utility, cable
communications company, or telephone company; and
    (ii) are generally accessible only to employees of such utility, cable communications
company, or telephone company or persons acting under its control or direction; and
    (iii) are not on the load side of the service point or point of entrance for
communication systems;
    (3) when used in the street lighting operations of an electrical utility;
    (4) when used as outdoor area lights which are owned and operated by an electrical
utility and which are connected directly to its distribution system and located upon the
utility's distribution poles, and which are generally accessible only to employees of such
utility or persons acting under its control or direction;
    (5) when the installation, material, and equipment are in facilities subject to the
jurisdiction of the federal Mine Safety and Health Act; or
    (6) when the installation, material, and equipment is part of an elevator installation
for which the elevator contractor, licensed under section 326B.33 326B.164, is required to
obtain a permit from the authority having jurisdiction as provided by section 326B.184,
and the inspection has been or will be performed by an elevator inspector certified and
licensed by the department. This exemption shall apply only to installations, material, and
equipment permitted or required to be connected on the load side of the disconnecting
means required for elevator equipment under National Electrical Code Article 620, and
elevator communications and alarm systems within the machine room, car, hoistway, or
elevator lobby.

    Sec. 23. Minnesota Statutes 2012, section 326B.37, is amended by adding a
subdivision to read:
    Subd. 15. Utility interconnected wind generation installations. (a) Fees
associated with utility interconnected generation installations consisting of one or more
generator sources interconnected with a utility power system and not supplying other
premises loads are calculated according to paragraph (b) or (c).
(b) The inspection fee is calculated according to subdivisions 2, 3, 4, and 6,
paragraphs (d), (f), (j), and (k). A fee must be included for the generators and utility
interconnect feeders, but not for a utility service.
(c) There is a plan review fee and inspection fee for the entire electrical installation.
The plan review fee is based on the valuation of the electrical installation related to one of
the generator systems that is part of the overall installation, not to include the supporting
tower or other nonelectrical equipment or structures, calculated according to section
326B.153, subdivision 2. The inspection fee is $80 for each individual tower, including
any voltage matching transformers located at the tower, and the fee for the feeders
interconnecting the individual towers to the utility power system is calculated according to
subdivisions 4 and 6, paragraph (k).

    Sec. 24. Minnesota Statutes 2012, section 326B.49, subdivision 2, is amended to read:
    Subd. 2. Fees for plan reviews and audits. Plumbing system plans and
specifications that are submitted to the commissioner for review shall be accompanied by
the appropriate plan examination fees. If the commissioner determines, upon review of
the plans, that inadequate fees were paid, the necessary additional fees shall be paid prior
to plan approval. The commissioner shall charge the following fees for plan reviews and
audits of plumbing installations for public, commercial, and industrial buildings:
    (1) systems with both water distribution and drain, waste, and vent systems and
having:
    (i) 25 or fewer drainage fixture units, $150;
    (ii) 26 to 50 drainage fixture units, $250;
    (iii) 51 to 150 drainage fixture units, $350;
    (iv) 151 to 249 drainage fixture units, $500;
    (v) 250 or more drainage fixture units, $3 per drainage fixture unit to a maximum
of $4,000; and
    (vi) interceptors, separators, or catch basins, $70 per interceptor, separator, or catch
basin design;
    (2) building sewer service only, $150;
    (3) building water service only, $150;
    (4) building water distribution system only, no drainage system, $5 per supply
fixture unit or $150, whichever is greater;
    (5) storm drainage system, a minimum fee of $150 or:
    (i) $50 per drain opening, up to a maximum of $500; and
    (ii) $70 per interceptor, separator, or catch basin design;
    (6) manufactured home park or campground, one to 25 sites, $300;
    (7) manufactured home park or campground, 26 to 50 sites, $350;
    (8) manufactured home park or campground, 51 to 125 sites, $400;
    (9) manufactured home park or campground, more than 125 sites, $500; and
    (10) accelerated review, double the regular fee, one-half to be refunded if no
response from the commissioner within 15 business days; and
    (11) (10) revision to previously reviewed or incomplete plans:
    (i) review of plans for which the commissioner has issued two or more requests for
additional information, per review, $100 or ten percent of the original fee, whichever
is greater;
    (ii) proposer-requested revision with no increase in project scope, $50 or ten percent
of original fee, whichever is greater; and
    (iii) proposer-requested revision with an increase in project scope, $50 plus the
difference between the original project fee and the revised project fee.
EFFECTIVE DATE.This section is effective January 1, 2014.

    Sec. 25. Minnesota Statutes 2012, section 326B.49, subdivision 3, is amended to read:
    Subd. 3. Inspection Permits; fees. The commissioner shall charge the following
fees for inspections under sections 326B.42 to 326B.49:

	Residential inspection fee (each visit)		$	50
	Public, Commercial, and Industrial Inspections		Inspection Fee
	25 or fewer drainage fixture units		$	300
	26 to 50 drainage fixture units		$	900
	51 to 150 drainage fixture units		$	1,200
	151 to 249 drainage fixture units		$	1,500
	250 or more drainage fixture units		$	1,800
	Callback fee (each visit)		$	100

(a) Before commencement of a plumbing installation to be inspected by the
commissioner, the plumbing contractor or registered plumbing employer performing the
plumbing work must submit to the commissioner an application for a permit and the
permit and inspection fees in paragraphs (b) to (f).
(b) The permit fee is $100.
(c) The residential inspection fee is $50 for each inspection trip.
(d) The public, commercial, and industrial inspection fees are as follows:
(1) for systems with water distribution, drain, waste, and vent system connection:
(i) $25 for each fixture, permanently connected appliance, floor drain, or other
appurtenance;
    (ii) $25 for each water conditioning, water treatment, or water filtration system;
(iii) $25 for each interceptor, separator, catch basin, or manhole;
(2) roof drains, $25 for each drain;
(3) building sewer service only, $100;
(4) building water service only, $100;
(5) building water distribution system only, no drainage system, $5 for each fixture
supplied;
(6) storm drainage system, a minimum fee of $25 for each drain opening, interceptor,
separator, or catch basin;
(7) manufactured home park or campground, $25 for each site;
(8) reinspection fee to verify corrections, regardless of the total fee submitted, $100
for each reinspection; and
(9) each $100 in fees paid covers one inspection trip.
(e) In addition to the fees in paragraph (c), the fee submitter must pay an hourly rate of
$80 during regular business hours, or $120 when inspections are requested to be performed
outside of normal work hours or on weekends and holidays, with a two-hour minimum
where the fee submitter requests inspections of installations as systems are being installed.
(f) The fee submitter must pay a fee equal to two hours at the hourly rate of $80
when inspections scheduled by the submitter are not able to be completed because the
work is not complete.

    Sec. 26. Minnesota Statutes 2012, section 341.321, is amended to read:
341.321 FEE SCHEDULE.
    (a) The fee schedule for professional licenses issued by the commissioner is as
follows:
    (1) referees, $45 $80 for each initial license and each renewal;
    (2) promoters, $400 $700 for each initial license and each renewal;
    (3) judges and knockdown judges, $45 $80 for each initial license and each renewal;
    (4) trainers, $45 $80 for each initial license and each renewal;
    (5) ring announcers, $45 $80 for each initial license and each renewal;
    (6) seconds, $45 $80 for each initial license and each renewal;
    (7) timekeepers, $45 $80 for each initial license and each renewal;
    (8) combatants, $45 $120 for each initial license and each renewal;
    (9) managers, $45 $80 for each initial license and each renewal; and
    (10) ringside physicians, $45 $80 for each initial license and each renewal.
In addition to the license fee and the late filing penalty fee in section 341.32, subdivision
2 , if applicable, an individual who applies for a professional license on the same day the
combative sporting event is held shall pay a late fee of $100 plus the original license fee of
$45 $120 at the time the application is submitted.
    (b) The fee schedule for amateur licenses issued by the commissioner is as follows:
    (1) referees, $45 $80 for each initial license and each renewal;
    (2) promoters, $400 $700 for each initial license and each renewal;
    (3) judges and knockdown judges, $45 $80 for each initial license and each renewal;
    (4) trainers, $45 $80 for each initial license and each renewal;
    (5) ring announcers, $45 $80 for each initial license and each renewal;
    (6) seconds, $45 $80 for each initial license and each renewal;
    (7) timekeepers, $45 $80 for each initial license and each renewal;
    (8) combatant, $25 $60 for each initial license and each renewal;
    (9) managers, $45 $80 for each initial license and each renewal; and
    (10) ringside physicians, $45 $80 for each initial license and each renewal.
    (c) The commissioner shall establish a contest fee for each combative sport contest.
The professional combative sport contest fee is $1,500 per event or not more than four
percent of the gross ticket sales, whichever is greater, as determined by the commissioner
when the combative sport contest is scheduled, except that the amateur combative sport
contest fee shall be $500 $1,500 or not more than four percent of the gross ticket sales,
whichever is greater. The commissioner shall consider the size and type of venue when
establishing a contest fee. The commissioner may establish the maximum number
of complimentary tickets allowed for each event by rule. A professional or amateur
combative sport contest fee is nonrefundable.
    (d) All fees and penalties collected by the commissioner must be deposited in the
commissioner account in the special revenue fund.

    Sec. 27. REPEALER.
(a) Minnesota Rules, part 1307.0032, is repealed effective December 31, 2013.
(b) Minnesota Statutes 2012, section 326B.31, subdivisions 18, 19, and 22, are
repealed.

ARTICLE 7

EMPLOYMENT AND ECONOMIC DEVELOPMENT

    Section 1. [116J.4011] LABOR MARKET INFORMATION DATA
PRODUCTION REQUIREMENT.
(a) As part of the commissioner's obligation under section 116J.401, the
commissioner must, in collaboration with the Office of Higher Education and local
workforce councils, produce and publish labor market analysis describing the alignment
between employer requirements and workforce qualifications.
(b) The analysis must include a description of job trends that supports career choice
and job seeking including:
(1) measures of current job growth, projected future job growth, and current job
vacancies;
(2) a breakdown of these measures, whenever feasible, by industry, occupation,
statewide and substate region, by educational requirement, state employee retirement
trends, and by racial trends;
(3) a description of industry- or occupation-based credentials and minimum
educational standards necessary for successful employment in each area; and
(4) a designation of areas of opportunity based on high growth, high vacancy, and
high pay conditions.
(c) The analysis must include a description of workforce supply and quality,
including:
(1) a description of the current educational attainment of the workforce and its
distribution across industries, occupations, and regions;
(2) the number and distribution of recent graduates of and current enrollees in
postsecondary institutions by academic concentration or major and by credential type; and
(3) the completion rate, employment outcome, and average debt for recent
postsecondary graduates by program of study, institution type, and credential.
(d) The analysis must be reviewed on a regular basis by representatives from the
business and postsecondary sectors, and any feedback should be incorporated into data
collection and presentation where feasible. This feedback may also include surveys of
employers on their skill, credential, and other workforce requirements when necessary.
(e) Analysis, data, and reports required by this section must be easily accessible, easily
readable, and prominently presented on the Department of Employment and Economic
Development Web site and Web sites of workforce centers. Information on job vacancies
and areas of potential employment opportunities should link to educational or credential
requirements, appropriate training or educational offerings, prevailing wages, and other
indicators of market conditions deemed important to career choosers and job seekers.

    Sec. 2. Minnesota Statutes 2012, section 116J.8731, subdivision 2, is amended to read:
    Subd. 2. Administration. Except as set forth in this section, the commissioner
shall administer the fund as part of the Small Cities Development Block Grant Program.
and funds shall be made available to local communities and recognized Indian tribal
governments in accordance with the rules adopted for economic development grants in
the small cities community development block grant program, except that. All units
of general purpose local government are eligible applicants for Minnesota investment
funds. The commissioner may provide forgivable loans directly to a private enterprise
and not require a local community or recognized Indian tribal government application
other than a resolution supporting the assistance. The commissioner may also make funds
available within the department for eligible expenditures under subdivision 3, clause
(2). A home rule charter or statutory city, county, or town may loan or grant money
received from repayment of funds awarded under this section to a regional development
commission, other regional entity, or statewide community capital fund as determined by
the commissioner, to capitalize or to provide the local match required for capitalization of
a regional or statewide revolving loan fund.

    Sec. 3. Minnesota Statutes 2012, section 116J.8731, subdivision 3, is amended to read:
    Subd. 3. Eligible expenditures. The money appropriated for this section may
be used to:
(1) fund loans or grants for infrastructure, loans, loan guarantees, interest buy-downs,
and other forms of participation with private sources of financing, provided that a loan to
a private enterprise must be for a principal amount not to exceed one-half of the cost of
the project for which financing is sought;
(2) fund strategic investments in renewable energy market development, such as
low interest loans for renewable energy equipment manufacturing, training grants to
support renewable energy workforce, development of a renewable energy supply chain
that represents and strengthens the industry throughout the state, and external marketing
to garner more national and international investment into Minnesota's renewable sector.
Expenditures in external marketing for renewable energy market development are not
subject to the limitations in clause (1); and
(3) provide private entrepreneurs with training, other technical assistance, and
financial assistance, as provided in the small cities development block grant program.

    Sec. 4. [116J.8748] MINNESOTA JOB CREATION FUND.
    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
have the meanings given.
(b) "Agreement" or "business subsidy agreement" means a business subsidy
agreement under section 116J.994 that must include, but is not limited to: specification
of the duration of the agreement, job goals and a timeline for achieving those goals over
the duration of the agreement, construction and other investment goals and a timeline for
achieving those goals over the duration of the agreement, and the value of benefits the
firm may receive following achievement of capital investment and employment goals.
The local government and business must report to the commissioner on the business
performance using the forms developed by the commissioner.
(c) "Business" means an individual, corporation, partnership, limited liability
company, association, or other entity.
(d) "Capital investment" means money that is expended for the purpose of building
or improving real fixed property where employees under paragraphs (g) and (h) are or
will be employed and also includes construction materials, services, and supplies, and the
purchase and installation of equipment and machinery as provided under subdivision 4,
paragraph (b), clause (5).
(e) "Commissioner" means the commissioner of employment and economic
development.
(f) "Minnesota job creation fund business" means a business that is designated
by the commissioner under subdivision 3.
(g) "New full-time employee" means an employee who:
(1) begins work at a Minnesota job creation fund business facility noted in a business
subsidy agreement and following the designation as a job creation fund business; and
(2) has expected work hours of at least 2,080 hours annually.
(h) "Retained job" means a full-time position:
(1) that existed at the facility prior to the designation as a job creation fund business;
and
(2) has expected work hours of at least 2,080 hours annually.
(i) "Wages" has the meaning given in section 290.92, subdivision 1, clause (1).
    Subd. 2. Application. (a) In order to qualify for designation as a Minnesota job
creation fund business under subdivision 3, a business must submit an application to the
local government entity where the facility is or will be located.
(b) A local government must submit the business application along with other
application materials to the commissioner for approval.
(c) The applications required under paragraphs (a) and (b) must be in the form and
be made under the procedures specified by the commissioner.
    Subd. 3. Minnesota job creation fund business designation; requirements. (a)
To receive designation as a Minnesota job creation fund business, a business must satisfy
all of the following conditions:
(1) the business is or will be engaged in, within Minnesota, one of the following
as its primary business activity:
(i) manufacturing;
(ii) warehousing;
(iii) distribution;
(iv) information technology;
(v) finance;
(vi) insurance; or
(vii) professional or technical services;
(2) the business must not be primarily engaged in lobbying; gambling; entertainment;
professional sports; political consulting; leisure; hospitality; or professional services
provided by attorneys, accountants, business consultants, physicians, or health care
consultants, or primarily engaged in making retail sales to purchasers who are physically
present at the business's location;
(3) the business must enter into a binding capital investment and job creation
business subsidy agreement with the commissioner to expend at least $500,000 in capital
investment in a capital investment project within one year following designation as a
Minnesota job creation fund business and:
(i) create at least ten new full-time employee positions within two years of the
benefit date following the designation as a Minnesota job creation fund business; or
(ii) expend at least $25,000,000, which may include the installation and purchase of
machinery and equipment, in capital investment and retain at least 200 employees;
(4) positions or employees moved or relocated from another Minnesota location
of the Minnesota job creation fund business must not be included in any calculation or
determination of job creation or new positions under this paragraph; and
(5) a Minnesota job creation fund business must not terminate, lay off, or reduce
the working hours of an employee for the purpose of hiring an individual to satisfy job
creation goals under this subdivision.
(b) Prior to approving the proposed designation of a business under this subdivision,
the commissioner shall consider the following:
(1) the economic outlook of the industry in which the business engages;
(2) the projected sales of the business that will be generated from outside the state
of Minnesota;
(3) how the business will build on existing regional, national, and international
strengths to diversify the state's economy;
(4) whether the business activity would occur without financial assistance;
(5) whether the business is unable to expand at an existing Minnesota operation
due to facility or land limitations;
(6) whether the business has viable location options outside Minnesota;
(7) the effect of financial assistance on industry competitors in Minnesota;
(8) financial contributions to the project made by local governments; and
(9) any other criteria the commissioner deems necessary.
(c) Upon receiving notification of local approval under subdivision 2, the
commissioner shall review the determination by the local government and consider the
conditions listed in paragraphs (a) and (b) to determine whether it is in the best interests of
the state and local area to designate a business as a Minnesota job creation fund business.
(d) If the commissioner designates a business as a Minnesota job creation fund
business, the business subsidy agreement shall include the performance outcome
commitments and the expected financial value of any Minnesota job creation fund benefits.
(e) The commissioner may amend an agreement once, upon request of a local
government on behalf of a business, only if the performance is expected to exceed
thresholds stated in the original agreement.
(f) A business may apply to be designated as a Minnesota job creation fund business
at the same location more than once only if all goals under a previous Minnesota job
creation fund agreement have been met and the agreement is completed.
    Subd. 4. Certification; benefits. (a) The commissioner may certify a Minnesota job
creation fund business as eligible to receive a specific value of benefit under paragraphs
(b) and (c) when the business has achieved its job creation and capital investment goals
noted in its agreement under subdivision 3.
(b) A qualified Minnesota job creation fund business may be certified eligible for the
benefits in this paragraph for up to five years as determined by the commissioner when
considering the best interests of the state and local area. The eligibility for the following
benefits begins the date the commissioner certifies the business as a qualified Minnesota
job creation fund business under this subdivision:
(1) up to five percent rebate on capital investment on qualifying purchases as
provided in subdivision 5 with the total rebate for a project not to exceed $500,000;
(2) an award of up to $500,000 based on full-time job creation and wages paid as
provided in subdivision 6 with the total award not to exceed $500,000;
(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation
awards are allowable for projects that have at least $25,000,000 in capital investment
and 200 new employees;
(4) up to $1,000,000 in capital investment rebates are allowable for projects that
have at least $25,000,000 in capital investment and 200 retained employees; and
(5) for clauses (3) and (4) only, the capital investment expenditure requirements may
include the installation and purchases of machinery and equipment. These expenditures
are not eligible for the capital investment rebate provided under subdivision 5.
(c) The job creation award may be provided in multiple years as long as the qualified
Minnesota job creation fund business continues to meet the job creation goals provided
for in its agreement under subdivision 3 and the total award does not exceed $500,000
except as provided under paragraph (b), clauses (3) and (4).
(d) No rebates or award may be provided until the Minnesota job creation fund
business has at least $500,000 in capital investment in the project and at least ten full-time
jobs have been created and maintained for at least one year or the retained employees, as
provided in paragraph (b), clause (4), remain for at least one year. The agreement may
require additional performance outcomes that need to be achieved before rebates and
awards are provided. If the number of retained jobs is at least 200, but less than the retained
jobs stated in the business subsidy agreement, the award shall be reduced proportionately.
(e) The forms needed to be submitted to document performance by the Minnesota
job creation fund business must be in the form and be made under the procedures specified
by the commissioner. The forms shall include documentation and certification by the
business that it is in compliance with the business subsidy agreement, sections 116J.871
and 116L.66, and other provisions as specified by the commissioner.
(f) Minnesota job creation fund businesses must pay each new full-time employee
added pursuant to the agreement total compensation, including benefits not mandated by
law, that on an annualized basis is equal to at least 110 percent of the federal poverty
level for a family of four.
(g) A Minnesota job creation fund business must demonstrate reasonable progress on
its capital investment expenditures within six months following designation as a Minnesota
job creation fund business to ensure that the capital investment goal in the agreement
under subdivision 1 will be met. Businesses not making reasonable progress will not be
eligible for benefits under the submitted application and will need to work with the local
government unit to resubmit a new application and request to be a Minnesota job creation
fund business. Notwithstanding the goals noted in its agreement under subdivision 1, this
action shall not be considered a default of the business subsidy agreement.
    Subd. 5. Capital investment rebate. (a) A qualified Minnesota job creation fund
business is eligible for a rebate on the purchase and use of construction materials, services,
and supplies used for or consumed in the construction project as described in the goals
under the agreement provided under subdivision 1, paragraph (b).
(b) The rebate under this subdivision applies regardless of whether the purchases are
made by the qualified Minnesota job creation fund business or a contractor hired to perform
work or provide services at the qualified Minnesota job creation fund business location.
(c) Minnesota job creation fund businesses seeking the rebate for capital investment
provided under subdivision 4 must submit forms and applications to the Department of
Employment and Economic Development as prescribed by the commissioner of each
department.
    Subd. 6. Job creation award. (a) A qualified Minnesota job creation fund business
is eligible for an annual award for each new job created and maintained by the business
using the following schedule: $1,000 for each job position paying annual wages at least
$26,000 but less than $35,000; $2,000 for each job position paying at least $35,000 but
less than $45,000; and $3,000 for each job position paying at least $45,000; and as noted
in the goals under the agreement provided under subdivision 1.
(b) The job creation award schedule must be adjusted annually using the percentage
increase in the federal poverty level for a family of four.
(c) Minnesota job creation fund businesses seeking an award credit provided under
subdivision 4 must submit forms and applications to the Department of Employment and
Economic Development as prescribed by the commissioner.
    Subd. 7. Rules. The procedures and operations used by the commissioner are
exempt from the rulemaking provisions of chapter 14.
EFFECTIVE DATE.This section is effective January 1, 2014.

    Sec. 5. [116J.9661] TRADE POLICY ADVISORY COUNCIL.
    Subdivision 1. Establishment. The Trade Policy Advisory Council is established to
advise and assist the governor and the legislature regarding United States trade agreements.
    Subd. 2. Membership. (a) The Trade Policy Advisory Council shall have 14
members, as follows:
(1) the commissioner of employment and economic development or designee;
(2) the commissioner of agriculture or designee;
(3) two senators, including one appointed by the Subcommittee on Committees of the
Committee on Rules and Administration, and one appointed by the minority leader; and
(4) two members of the house of representatives, including one member appointed
by the speaker of the house and one member appointed by the minority leader; and
(5) eight members appointed by the governor. The governor's appointees shall
represent specified interests, as follows:
(i) two representatives of organized labor;
(ii) a representative of an organization representing environmental interests;
(iii) a representative from each of two separate organizations representing family
farmers;
(iv) two representatives from business and industry;
(v) a representative of a nonprofit organization focused on international trade and
development.
(b) The Trade Policy Advisory Council may invite representatives from other state
agencies, industries, trade and labor organizations, nongovernmental organizations, and
local governments to join the council as nonvoting ex officio members.
(c) Except for initial appointments, the appointing authorities shall make
appointments by the first Monday in January of every odd-numbered year.
    Subd. 3. Term. Except for the initial appointees, members of the Trade Policy
Advisory Council shall serve for a term of two years and may be reappointed. Members
shall serve until their successors have been appointed.
    Subd. 4. Administration. The commissioner of employment and economic
development or the commissioner's designee shall provide meeting space and
administrative services for the council.
    Subd. 5. Initial appointments and first meeting. The appointing authorities shall
appoint the first members of the council by September 15, 2013. The first appointees shall
serve until the first Monday in January, 2015. The commissioner of the Department of
Employment and Economic Development shall convene the first meeting by December
15, 2013, and shall act as chair until the council elects a chair at its first meeting.
    Subd. 6. Chair. The members shall elect a chair from the legislative members
of the advisory council.
    Subd. 7. No compensation. Public members of the advisory council serve without
compensation or payment of expenses.
    Subd. 8. Duties. The Trade Policy Advisory Council shall:
(1) advise the governor and the legislature on matters relating to United States
trade agreements;
(2) assess the potential impact of federal trade agreements on the state's economy;
(3) advise the governor and the legislature of the group's findings and make
recommendations, including any draft legislation necessary to implement the
recommendations, to the governor and the legislature;
(4) determine, on a case-by-case basis, the impact of a specific federal trade
agreement by requesting input from state agencies, seeking expert advice, convening
public hearings, and taking other reasonable and appropriate actions;
(5) request information from the Office of the United States Trade Representative
necessary to conduct an appropriate review of government procurement agreements or
other trade issues; and
(6) receive information obtained by the United States Trade Representative's single
point of contact for Minnesota.
    Subd. 9. Report. The Trade Policy Advisory Council shall submit a report to the
chairs and ranking minority members of the legislative committees and divisions of the
Senate and House of Representatives with primary jurisdiction over jobs with its findings
and recommendations no less than once per fiscal year. The report shall include draft
legislation to implement its recommendations.
    Subd. 10. Sunset. The council will sunset January 1, 2020.

    Sec. 6. [116J.978] MINNESOTA TRADE OFFICES IN FOREIGN MARKETS.
    Subdivision 1. Establishment. The commissioner of employment and economic
development shall, by July 1, 2014, establish three new Minnesota Trade Offices in key
foreign markets selected by the commissioner for their potential to increase Minnesota
exports and attract foreign direct investment.
    Subd. 2. Duties. The duties of each office may include, with regard to their
respective market areas, the duties stated in section 116J.966.
    Subd. 3. Discretionary powers. Each office may:
(1) apply for, accept, and disburse grants and other aids from the federal government
and other public or private sources;
(2) sponsor and conduct conferences and studies, collect and disseminate
information, and issue reports relating to trade with and foreign direct investment in
Minnesota companies; and
(3) establish a Web site in furtherance of its duties.
    Subd. 4. Staff. Each office may employ staff necessary to carry out the office's
duties under subdivision 2.
    Subd. 5. Accountability. (a) The commissioner shall establish a performance
rating system for each office and create specific annual goals for the offices to meet. The
commissioner shall monitor activities of the office, including, but not limited to, the number
of inquires and projects received and completed; meetings arranged between Minnesota
companies and potential investors, distributors, or customers; and agreements signed.
(b) The commissioner shall submit a report to the chairs and ranking minority
members of the committees and divisions in the senate and house of representatives with
primary jurisdiction over economic development by February 15 of each odd-numbered
year. The report shall include the performance ratings of each office and shall specify
for each office the number of inquiries and projects received and completed; meetings
arranged between Minnesota companies and potential investors, distributors, or customers;
and agreements signed.

    Sec. 7. [116J.979] MINNESOTA STEP GRANTS.
    Subdivision 1. Establishment. The commissioner of employment and economic
development shall create a State Trade and Export Promotion grants program, hereafter
STEP grants, to provide financial and technical assistance to eligible Minnesota small
businesses with an active interest in exporting products or services to foreign markets.
    Subd. 2. Grants. Recipients may apply, on an application devised by the
commissioner, for up to $7,500 in reimbursement for approved export-development
activities, including, but not limited to:
(1) participation in trade missions;
(2) export training;
(3) exhibition at trade shows or industry-specific events;
(4) translation of marketing materials;
(5) development of foreign language Web sites, Gold Key, or other business
matchmaking services;
(6) company-specific international sales activities; and
(7) testing and certification required to sell products in foreign markets.

    Sec. 8. [116J.9801] INVEST MINNESOTA.
The commissioner shall establish the Invest Minnesota marketing initiative. This
initiative must focus on branding the state's economic development initiatives and
promoting Minnesota business opportunities. The initiative may include measures to
communicate the benefits of doing business in Minnesota to companies considering
relocating, establishing a United States presence, or expanding.

    Sec. 9. [116L.191] WORKFORCE CENTER; CREDENTIAL ASSISTANCE.
(a) The commissioner shall provide at local workforce centers services that
assist individuals in identifying and obtaining industry-recognized credentials for jobs,
particularly jobs in high demand. The workforce centers must consult and cooperate
with training institutions, particularly postsecondary institutions, to identify credential
programs to individuals.
(b) Each workforce center shall provide information under section 116J.4011,
paragraph (b), clause (3), linked as a shortcut from the desktop of each workforce center
computer and available in hard copy. Prominent signs should be posted in workforce
centers directing individuals to where they can find a list of top job vacancies and related
credential information.

    Sec. 10. Minnesota Statutes 2012, section 116U.26, is amended to read:
116U.26 FILM PRODUCTION JOBS PROGRAM.
    (a) The film production jobs program is created. The program shall be operated
by the Minnesota Film and TV Board with administrative oversight and control by the
commissioner of administration employment and economic development. The program
shall make payment to producers of feature films, national television or Internet programs,
documentaries, music videos, and commercials that directly create new film jobs in
Minnesota. To be eligible for a payment, a producer must submit documentation to the
Minnesota Film and TV Board of expenditures for production costs incurred in Minnesota
that are directly attributable to the production in Minnesota of a film product.
    The Minnesota Film and TV Board shall make recommendations to the
commissioner of administration employment and economic development about program
payment, but the commissioner has the authority to make the final determination on
payments. The commissioner's determination must be based on proper documentation of
eligible production costs submitted for payments. No more than five percent of the funds
appropriated for the program in any year may be expended for administration, including
costs for independent audits and financial reviews of projects.
    (b) For the purposes of this section:
    (1) "production costs" means the cost of the following:
    (i) a story and scenario to be used for a film;
    (ii) salaries of talent, management, and labor, including payments to personal
services corporations for the services of a performing artist;
    (iii) set construction and operations, wardrobe, accessories, and related services;
    (iv) photography, sound synchronization, lighting, and related services;
    (v) editing and related services;
    (vi) rental of facilities and equipment; or
    (vii) other direct costs of producing the film in accordance with generally accepted
entertainment industry practice; and
(viii) above-the-line talent fees for nonresident talent; or
(ix) costs incurred during postproduction; and
    (2) "film" means a feature film, television or Internet show, pilot, program, series,
documentary, music video, or television commercial, whether on film, video, or digital
media. Film does not include news, current events, public programming, or a program
that includes weather or market reports; a talk show; a production with respect to a
questionnaire or contest; a sports event or sports activity; a gala presentation or awards
show; a finished production that solicits funds; or a production for which the production
company is required under United States Code, title 18, section 2257, to maintain records
with respect to a performer portrayed in a single-media or multimedia program.
    (c) Notwithstanding any other law to the contrary, the Minnesota Film and TV Board
may make reimbursements of: (1) up to 20 25 percent of film production costs for films that
locate production outside the metropolitan area, as defined in section 473.121, subdivision
2, or that incur production costs in excess of $5,000,000 a minimum Minnesota expenditure
of $1,000,000 in the metropolitan area within a 12-month period; or (2) up to 15 20
percent of film production costs for films that incur less than $1,000,000 in Minnesota
production costs of $5,000,000 or less in the metropolitan area within a 12-month period.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 11. Minnesota Statutes 2012, section 136F.37, is amended to read:
136F.37 JOB PLACEMENT IMPACT ON PROGRAM REVIEW;
INFORMATION TO STUDENTS.
    Subdivision 1. Colleges; technical occupational program. The board must
assess labor market data when conducting college program reviews. Colleges must
provide prospective students with the job placement rate for graduates of technical and
occupational programs offered at the colleges.
    Subd. 2. DEED labor market survey; MnSCU usage and disclosure. The data
assessed under subdivision 1 must include labor market data compiled by the Department
of Employment and Economic Development under section 116J.4011. The board and its
colleges and universities must use this market data when deciding upon course and program
offerings. The board must provide a link to this labor market data on its Internet portal.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 12. Minnesota Statutes 2012, section 245.4712, subdivision 1, is amended to read:
    Subdivision 1. Availability of community support services. (a) County boards
must provide or contract for sufficient community support services within the county to
meet the needs of adults with serious and persistent mental illness who are residents of the
county. Adults may be required to pay a fee according to section 245.481. The community
support services program must be designed to improve the ability of adults with serious
and persistent mental illness to:
    (1) work in a regular or supported work environment find and maintain competitive
employment;
    (2) handle basic activities of daily living;
    (3) participate in leisure time activities;
    (4) set goals and plans; and
    (5) obtain and maintain appropriate living arrangements.
    The community support services program must also be designed to reduce the
need for and use of more intensive, costly, or restrictive placements both in number of
admissions and length of stay.
    (b) Community support services are those services that are supportive in nature and
not necessarily treatment oriented, and include:
    (1) conducting outreach activities such as home visits, health and wellness checks,
and problem solving;
    (2) connecting people to resources to meet their basic needs;
    (3) finding, securing, and supporting people in their housing;
    (4) attaining and maintaining health insurance benefits;
    (5) assisting with job applications, finding and maintaining employment, and
securing a stable financial situation;
    (6) fostering social support, including support groups, mentoring, peer support, and
other efforts to prevent isolation and promote recovery; and
    (7) educating about mental illness, treatment, and recovery.
    (c) Community support services shall use all available funding streams. The county
shall maintain the level of expenditures for this program, as required under section
245.4835 . County boards must continue to provide funds for those services not covered
by other funding streams and to maintain an infrastructure to carry out these services. The
county is encouraged to fund evidence-based practices such as Individual Placement and
Support Supported Employment and Illness Management and Recovery.
    (d) The commissioner shall collect data on community support services programs,
including, but not limited to, demographic information such as age, sex, race, the number
of people served, and information related to housing, employment, hospitalization,
symptoms, and satisfaction with services.

    Sec. 13. Minnesota Statutes 2012, section 268A.13, is amended to read:
268A.13 EMPLOYMENT SUPPORT SERVICES FOR PERSONS WITH
MENTAL ILLNESS.
The commissioner of employment and economic development, in cooperation
with the commissioner of human services, shall develop a statewide program of grants
as outlined in section 268A.14 to provide services for persons with mental illness who
want to work in supported employment. Projects funded under this section must: (1)
assist persons with mental illness in obtaining and retaining competitive employment; (2)
emphasize individual community placements for clients client preferences; (3) ensure
interagency collaboration at the local level between vocational rehabilitation field offices,
county service agencies, community support programs operating under the authority of
section 245.4712, and community rehabilitation providers, in assisting clients; (4) ensure
services are integrated with mental health treatment; (5) provide benefits counseling;
(6) conduct rapid job search; and (4) (7) involve clients in the planning, development,
oversight, and delivery of support services. Project funds may not be used to provide
services in segregated settings such as the center-based employment subprograms as
defined in section 268A.01.
The commissioner of employment and economic development, in consultation
with the commissioner of human services, shall develop a request for proposals which is
consistent with the requirements of this section and section 268A.14 and which specifies
the types of services that must be provided by grantees. Priority for funding shall be given
to organizations with experience in developing innovative employment support services
for persons with mental illness carrying out evidence-based practices. Each applicant for
funds under this section shall submit an evaluation protocol as part of the grant application.

    Sec. 14. Minnesota Statutes 2012, section 268A.14, subdivision 1, is amended to read:
    Subdivision 1. Employment support services and programs. The commissioner
of employment and economic development, in cooperation with the commissioner of
human services, shall operate a statewide system to reimburse providers for employment
support services for persons with mental illness. The system shall be operated to support
employment programs and services where:
(1) services provided are readily accessible to all persons with mental illness who
want to work, including rapid competitive job search, so they can make progress toward
economic self-sufficiency;
(2) services provided are made an integral part of all mental health treatment and
rehabilitation programs for persons with mental illness to ensure that they have the ability
and opportunity to consider a variety of work options;
(3) programs help persons with mental illness form long-range plans for employment
that fit their skills and abilities by ensuring that ongoing time-unlimited support, crisis
management, placement, and career planning services are available;
(4) services provided give persons with mental illness the information needed
to make informed choices about employment expectations and options, including
information on the types of employment available in the local community, the types of
employment services available, the impact of employment on eligibility for governmental
benefits, and career options;
(5) programs assess whether persons with mental illness being serviced are satisfied
with the services and outcomes. Satisfaction assessments shall address at least whether
persons like their jobs, whether quality of life is improved, whether potential for
advancement exists, and whether there are adequate support services in place;
(6) programs encourage persons with mental illness being served to be involved in
employment support services issues by allowing them to participate in the development of
individual rehabilitation plans and to serve on boards, committees, task forces, and review
bodies that shape employment services policies and that award grants, and by encouraging
and helping them to establish and participate in self-help and consumer advocacy groups;
(7) programs encourage employers to expand employment opportunities for
persons with mental illness and, to maximize the hiring of persons with mental illness,
educate employers about the needs and abilities of persons with mental illness and the
requirements of the Americans with Disabilities Act;
(8) programs encourage persons with mental illness, vocational rehabilitation
professionals, and mental health professionals to learn more about current work incentive
provisions in governmental benefits programs;
(9) programs establish and maintain linkages with a wide range of other programs
and services, including educational programs, housing programs, economic assistance
services, community support services, and clinical services to ensure that persons with
mental illness can obtain and maintain employment;
(10) programs participate in ongoing training across agencies and service delivery
systems so that providers in human services systems understand their respective roles,
rules, and responsibilities and understand the options that exist for providing employment
and community support services to persons with mental illness; and
(11) programs work with local communities to expand system capacity to provide
access to employment services to all persons with mental illness who want them.

    Sec. 15. UNEMPLOYMENT INSURANCE EMPLOYER TAX REDUCTION.
(a) Notwithstanding Minnesota Statutes, section 268.051, subdivision 2, if, on
September 30, 2013, the balance in the Minnesota unemployment trust fund is more than
$800,000,000, the base tax rate for calendar year 2014 is 0.1 percent and there will be no
additional assessment assigned. If, on September 30, 2014, the balance in the Minnesota
unemployment trust fund is more than $900,000,000, the base tax rate for calendar year
2015 is 0.1 percent and there will be no additional assessment assigned.
(b) This section expires December 31, 2015.

    Sec. 16. PILOT PROGRAMS; COMBINING CAREER AND HIGHER
EDUCATION ADVISING.
The workforce council in each of the workforce service areas of Hennepin/Carver,
Northeast Minnesota, Stearns/Benton, and rural Minnesota CEP must with at least one
public school district in its service area, cooperate in operating a program to assist high
school students in selecting careers of interest to a student and a postsecondary path to
prepare for that career. The local workforce council shall individually advise a student on
jobs in high demand in areas of interest to a student. Advising must include information
on various career paths and associated jobs, the salary profile of those jobs, and the
credentials and other training desired by employers for those jobs. A district may assist
the local workforce council by, among other activities:
(1) describing to the local workforce council what kind of vocational exploration the
student already received;
(2) identifying opportunities for the council to assist students by providing office
space at school to meet with students, access to assemblies and other groups for testing
and career exploration, access to teachers through in-service and in other manners, to
support students to use a pilot program; and
(3) working with students after testing and advising by the local workforce council.

ARTICLE 8

MISCELLANEOUS ECONOMIC DEVELOPMENT PROVISIONS

    Section 1. Minnesota Statutes 2012, section 16B.122, subdivision 2, is amended to read:
    Subd. 2. Purchases; printing. (a) Whenever practicable, a public entity shall:
(1) purchase uncoated office paper and printing paper;
(2) purchase recycled content paper with at least ten percent postconsumer material
by weight;
(3) purchase paper which has not been dyed with colors, excluding pastel colors;
(4) purchase recycled content paper that is manufactured using little or no chlorine
bleach or chlorine derivatives;
(5) use no more than two colored inks, standard or processed, except in formats
where they are necessary to convey meaning;
(6) use reusable binding materials or staples and bind documents by methods that do
not use glue;
(7) use soy-based inks; and
(8) produce reports, publications, and periodicals that are readily recyclable within
the state resource recovery program; and
(9) purchase paper which has been made on a paper machine located in Minnesota.
(b) Paragraph (a), clause (1), does not apply to coated paper that is made with at
least 50 percent postconsumer material.
(c) A public entity shall print documents on both sides of the paper where commonly
accepted publishing practices allow.
(d) Notwithstanding paragraph (a), clause (2), and section 16B.121, copier paper
purchased by a state agency must contain at least ten percent postconsumer material by
fiber content.

    Sec. 2. Minnesota Statutes 2012, section 179.02, is amended by adding a subdivision
to read:
    Subd. 6. Grants. (a) The commissioner of mediation services may make grants
to private nonprofit entities that assist in resolution of disputes. The commissioner
shall establish a grant review committee to assist the commissioner in review of grant
applications under this subdivision.
(b) To be eligible for a grant under this subdivision, a nonprofit organization must
meet the requirements of section 494.05, subdivision 1, clauses (1), (2), (4), and (5).
(c) A grant agreement may include performance-based standards that apply to a
specified percentage of the potential grant amount. A grant may include a requirement for
a matching contribution from a nonstate source.
(d) A nonprofit entity receiving a grant must, as a condition of the grant, agree to
comply with guidelines adopted by the state court administrator under section 494.015,
subdivision 1, and with other conditions the commissioner may impose. Sections
16B.97 and 16B.98 and policies adopted under those sections apply to grants under this
subdivision. The exclusions in section 494.03 apply to grants under this subdivision.
(e) Grantees must report to the commissioner data required under chapter 494 and
additional information required by the commissioner to evaluate quality and outcomes.

    Sec. 3. Minnesota Statutes 2012, section 298.22, subdivision 1, is amended to read:
    Subdivision 1. The office of the commissioner of Iron Range resources and
rehabilitation. (1) The office of the commissioner of Iron Range resources and
rehabilitation is created as an agency in the executive branch of state government. The
governor shall appoint the commissioner of Iron Range resources and rehabilitation under
section 15.06.
(2) The commissioner may hold other positions or appointments that are not
incompatible with duties as commissioner of Iron Range resources and rehabilitation. The
commissioner may appoint a deputy commissioner. All expenses of the commissioner,
including the payment of staff and other assistance as may be necessary, must be paid
out of the amounts appropriated by section 298.28 or otherwise made available by law
to the commissioner. Notwithstanding chapters 16A, 16B, and 16C, the commissioner
may utilize contracting options available under section 471.345 when the commissioner
determines it is in the best interest of the agency. The agency is not subject to sections
16E.016 and 16C.05.
(3) When the commissioner determines that distress and unemployment exists or
may exist in the future in any county by reason of the removal of natural resources or
a possibly limited use of natural resources in the future and any resulting decrease in
employment, the commissioner may use whatever amounts of the appropriation made to
the commissioner of revenue in section 298.28 that are determined to be necessary and
proper in the development of the remaining resources of the county and in the vocational
training and rehabilitation of its residents, except that the amount needed to cover cost
overruns awarded to a contractor by an arbitrator in relation to a contract awarded by
the commissioner or in effect after July 1, 1985, is appropriated from the general fund.
For the purposes of this section, "development of remaining resources" includes, but is
not limited to, the promotion of tourism.

    Sec. 4. Minnesota Statutes 2012, section 298.28, subdivision 9b, is amended to read:
    Subd. 9b. Taconite environmental fund. Five cents per ton must be paid to the
taconite environmental fund for use under section 298.2961, subdivision 4. 0.20 cent per
ton must be paid to the taconite environmental fund for use under section 298.2961,
subdivision 4. 0.20 cent per ton must be paid to the city of Eveleth to be used for the
support of the Hockey Hall of Fame, provided that it continues to operate in that city.

    Sec. 5. Minnesota Statutes 2012, section 507.235, subdivision 2, is amended to read:
    Subd. 2. Penalty for failure to file. (a) A vendee who fails to record a contract for
deed, as required by subdivision 1, is subject to a civil penalty, payable under subdivision
5, equal to two percent of the principal amount of the contract debt, unless the vendee
has not received a copy of the contract for deed in recordable form, as required under
subdivision 1a. Payments of the penalty shall be deposited in the general fund of the
county. The penalty may be enforced as a lien against the vendee's interest in the property.
(b) A person receiving an assignment of a vendee's interest in a contract for deed
who fails to record the assignment as required by subdivision 1 is subject to a civil penalty,
payable under subdivision 5, equal to two percent of the original principal amount of the
contract debt. Payments of the penalty must be deposited in the general fund of the county.
The penalty may be enforced as a lien against the vendee's interest in the property.

    Sec. 6. [559.201] DEFINITIONS.
    Subdivision 1. Application. The definitions in this section apply to section 559.202.
    Subd. 2. Business day. "Business day" means any day other than a Saturday,
Sunday, or holiday as defined in section 645.44, subdivision 5.
    Subd. 3. Family farm security loan. "Family farm security loan" has the meaning
given in Minnesota Statutes 2008, section 41.52, subdivision 5.
    Subd. 4. Multiple seller. "Multiple seller" means a person that has acted as a seller
in four or more contracts for deed involving residential real property during the 12-month
period that precedes either: (1) the date on which the purchaser executes a purchase
agreement under section 559.202; or (2) if there is no purchase agreement, the date on
which the purchaser executes a contract for deed under section 559.202. A contract for
deed transaction that is exempt under section 559.202, subdivision 2, is a contract for deed
for the purposes of determining whether a seller is a multiple seller.
    Subd. 5. Person. "Person" means a natural person, partnership, corporation, limited
liability company, association, trust, or other legal entity, however organized.
    Subd. 6. Purchase agreement. "Purchase agreement" means a purchase agreement
for a contract for deed, an earnest money contract, or an executed option contemplating
that, at closing, the seller and the purchaser will enter into a contract for deed.
    Subd. 7. Purchaser. "Purchaser" means a natural person who enters into a contract
for deed to purchase residential real property. Purchaser includes all purchasers who enter
into the same contract for deed to purchase residential real property.
    Subd. 8. Residential real property. "Residential real property" means real property
consisting of one to four family dwelling units, one of which the purchaser intends to
occupy as the purchaser's principal place of residence. Residential real property does
not include property subject to a family farm security loan or a transaction subject to
sections 583.20 to 583.32.

    Sec. 7. [559.202] CONTRACTS FOR DEED INVOLVING RESIDENTIAL
PROPERTY.
    Subdivision 1. Notice required. (a) In addition to the disclosures required under
sections 513.52 to 513.60, a multiple seller must deliver the notice specified under
subdivision 3 to a prospective purchaser as provided under this subdivision.
(b) If there is a purchase agreement, the notice must be affixed to the front of
the purchase agreement. A contract for deed for which notice is required under this
subdivision may not be executed for five business days following the execution of the
purchase agreement and delivery of the notice and instructions for cancellation.
(c) If there is no purchase agreement, a multiple seller must deliver the notice in a
document separate from any other document or writing to a prospective purchaser no less
than five business days before the prospective purchaser executes the contract for deed.
(d) The notice must be:
(1) written in at least 12-point type; and
(2) signed and dated by the purchaser.
(e) If a dispute arises concerning whether or when the notice required by this
subdivision was provided to the purchaser, there is a rebuttable presumption that the notice
was not provided unless the original executed contract for deed contains the following
statement, initialed by the purchaser: "By initialing here ....... purchaser acknowledges
receipt at least five business days before signing this contract for deed of the disclosure
statement entitled "Important Information About Contracts for Deed" required by
Minnesota Statutes, section 559.202, subdivision 3."
    Subd. 2. Exception. This section does not apply if the purchaser is represented
throughout the transaction by either:
(1) a person licensed to practice law in this state; or
(2) a person licensed as a real estate broker or salesperson under chapter 82,
provided that the representation does not create a dual agency, as that term is defined
in section 82.55, subdivision 6.
    Subd. 3. Content of the notice. The notice must contain the following verbatim
language:

"IMPORTANT INFORMATION ABOUT CONTRACTS FOR DEED

Know What You Are Getting Into
(1) A contract for deed is a complex legal agreement. You are NOT a tenant. Mortgage
foreclosure laws don't apply.
(2) You should know ALL of your obligations and rights before you sign a purchase
agreement or contract for deed.
(3) You (seller must circle one):

	(a)	DO	DO NOT	have to pay homeowner's insurance.
	(b)	DO	DO NOT	have to pay property taxes.
	(c)	DO	DO NOT	have to make and pay for some or all of the repairs or maintenance, as described in the contract for deed.

(4) After some time, you may need to make a large lump sum payment (called a "balloon
payment"). Know when it is due and how much it will be. You'll probably need to get a
new mortgage, another financial arrangement, or pay for the balance in cash at that time.
(5) If you miss just a single payment or can't make the balloon payment, the seller can
cancel your contract. You will likely lose all the money you have already paid. You will
likely lose your ability to purchase the home. The seller can begin an eviction action
against you in just a few months.
(6) Within four months of signing the contract for deed, you must "record" it in the office
of the county recorder or registrar of titles in the county in which the property is located.
If you do not do so, you could face a fine.
Key Things Highly Recommended Before You Sign
(1) Get advice from a lawyer or the Minnesota Home Ownership Center at 1-866-462-6466
or go to www.hocmn.org. To find a lawyer through the Minnesota State Bar Association,
go to www.mnfindalawyer.com.
(2) Get an independent, professional appraisal of the property to learn what it is worth.
(3) Get an independent, professional inspection of the property.
(4) Buy title insurance or ask a real estate lawyer for a "title opinion."
(5) Check with the city or county to find out if there are inspection reports or unpaid
utility bills.
(6) Check with a title company or the county where the property is located to find out if
there is a mortgage or other lien on the property and if the property taxes have been paid.
(7) Ensure that your interest rate does not exceed the maximum allowed by law by calling
the Department of Commerce at 651-297-7053 to get a recorded message for the current
month's maximum rate.
If You Are Entering into a Purchase Agreement
(1) If you haven't already signed the contract for deed, you can cancel the purchase
agreement (and get all your money back) if you do so within five business days after
getting this notice.
(2) To cancel the purchase agreement, you must follow the provisions of Minnesota
Statutes, section 559.217, subdivision 4. Ask a lawyer for help."
    Subd. 4. Right to cancel purchase agreement. (a) A prospective purchaser may
cancel a purchase agreement within five business days after actually receiving the notice
required under subdivision 1 if a multiple seller fails to timely deliver the notice, provided
that the contract for deed has not been executed by all parties.
(b) A prospective purchaser may cancel the purchase agreement in accordance with
the provisions of section 559.217, subdivision 4.
(c) In the event of cancellation, the multiple seller may not impose a penalty and must
promptly refund all payments made by the prospective purchaser prior to cancellation.
    Subd. 5. Remedies for failure to timely deliver notices. (a) Notwithstanding
any contrary provision in the purchase agreement or contract for deed, a purchaser has
a private right of action against a multiple seller who fails to timely deliver the notice
required under subdivision 1. The multiple seller is liable to the purchaser for:
(1) the greater of actual damages or statutory damages of $2,500; and
(2) reasonable attorney fees and court costs.
(b) A multiple seller who knowingly fails to timely deliver the notice required
under subdivision 1 is liable to the purchaser for triple the actual or statutory damages
available under paragraph (a), whichever is greater, provided that the purchaser must elect
the remedy provided under either paragraph (a) or this paragraph and may not recover
damages under both paragraphs.
(c) The rights and remedies provided in this subdivision are cumulative to, and not
a limitation of, any other rights and remedies provided under law. An action brought
pursuant to this subdivision must be commenced within four years from the date of the
alleged violation.
    Subd. 6. Effects of violation. A violation of this section has no effect on the
validity of the contract.
    Subd. 7. Duty of multiple seller to account. Upon reasonable request by the
purchaser and no more than once every 12-month period, a multiple seller must provide an
accounting of all payments made pursuant to the contract for deed, the amount of interest
paid, and the amount remaining to satisfy the principal balance under the contract.
    Subd. 8. No waiver. The provisions of this section may not be waived.
EFFECTIVE DATE.This section is effective August 1, 2013, and applies to
transactions in which the contract for deed and the purchase agreement for the contract
for deed, if any, were both executed on or after that date.

    Sec. 8. Minnesota Statutes 2012, section 559.211, subdivision 2, is amended to read:
    Subd. 2. Remedies additional. The remedies provided in this section are in
addition to and do not limit other rights or remedies available to purchasers or vendors of
real estate. Subject to the provisions of sections 559.213 and 559.217, subdivision 7, this
section shall not be construed to bar a court from determining the validity, effectiveness,
or consequences of proceeding under section 559.21 or 559.217, or granting other relief in
connection therewith, by reason of the failure of a purchaser to seek or obtain relief under
this section prior to the purported effective date of the termination of the contract.

    Sec. 9. 2013 DISTRIBUTION ONLY.
For the 2013 distribution, a special fund is established to receive 28.6 cents per ton
of the amount that otherwise would be distributed under Minnesota Statutes, section
298.28, subdivision 6. The following amounts are allocated to St. Louis County acting as
the fiscal agent for the recipients for the specific purposes:
(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water
supply system;
(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities
required as a result of actions undertaken by United States Steel Corporation;
(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water supply
system payable upon agreement with ArcelorMittal to satisfy water permit conditions;
(4) 2.5 cents per ton to the city of Tower for the Tower Marina;
(5) 2.5 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer
system to replace aging effluent lines and for parking lot repaving;
(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant
improvements;
(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacements project;
(8) 0.5 cents per ton to the town of Crystal Bay for construction of the Claire Nelson
transmodal facility;
(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine
Hockey Arena renovation;
(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center
to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and
Greenway Township;
(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;
(12) 0.7 cents per ton to the city of Chisholm for Center Drive;
(13) 2.1 cents per ton to the Crane Lake Water and Sanitary District for sanitary
sewer extension and must be matched; and
(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy.
EFFECTIVE DATE.This section is effective for the 2013 distribution, all of which
must be made in the August 2013 payment.

    Sec. 10. ST. PAUL RIVERCENTRE ARENA.
Notwithstanding Laws 1998, chapter 404, section 23, subdivision 6, as amended
by Laws 2002, chapter 220, Article 10, section 35, the repayment amounts due from the
city of St. Paul in fiscal years 2014 and 2015 shall be reduced by $500,000 each year. No
repayments are required from the city of St. Paul from fiscal years 2016 through 2021.
Amounts scheduled to be repaid in fiscal years 2016 through 2021 must be used solely
to pay for or finance design, construction, or equipment to make arena improvements
according to a project list mutually agreed to between the lessee and the city of St. Paul's
lease representative.

    Sec. 11. REPEALER.
Minnesota Statutes 2012, sections 116W.01; 116W.02; 116W.03; 116W.035;
116W.04; 116W.05; 116W.06; 116W.20; 116W.21; 116W.23; 116W.24; 116W.25;
116W.26; 116W.27; 116W.28; 116W.29; 116W.30; 116W.31; 116W.32; 116W.33;
116W.34; and 507.235, subdivision 4, are repealed, effective the day following final
enactment.

ARTICLE 9

SANITARY DISTRICTS

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

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

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

    Sec. 4. [442A.02] SANITARY DISTRICTS; PROCEDURES AND AUTHORITY.
    Subdivision 1. Duty of chief administrative law judge. The chief administrative
law judge shall conduct proceedings, make determinations, and issue orders for the
creation of a sanitary district formed under this chapter or the annexation, detachment,
or dissolution of a sanitary district previously formed under Minnesota Statutes 2012,
sections 115.18 to 115.37.
    Subd. 2. Consolidation of proceedings. The chief administrative law judge may
order the consolidation of separate proceedings in the interest of economy and expedience.
    Subd. 3. Contracts, consultants. The chief administrative law judge may contract
with regional, state, county, or local planning commissions and hire expert consultants to
provide specialized information and assistance.
    Subd. 4. Powers of conductor of proceedings. Any person conducting a
proceeding under this chapter may administer oaths and affirmations; receive testimony
of witnesses, and the production of papers, books, and documents; examine witnesses;
and receive and report evidence. Upon the written request of a presiding administrative
law judge or a party, the chief administrative law judge may issue a subpoena for the
attendance of a witness or the production of books, papers, records, or other documents
material to any proceeding under this chapter. The subpoena is enforceable through the
district court in the district in which the subpoena is issued.
    Subd. 5. Rulemaking authority. The chief administrative law judge may adopt
rules that are reasonably necessary to carry out the duties and powers imposed upon the
chief administrative law judge under this chapter. The chief administrative law judge may
initially adopt rules according to section 14.386. Notwithstanding section 16A.1283, the
chief administrative law judge may adopt rules establishing fees.
    Subd. 6. Schedule of filing fees. The chief administrative law judge may prescribe
by rule a schedule of filing fees for any petitions filed under this chapter.
    Subd. 7. Request for hearing transcripts; costs. Any party may request the chief
administrative law judge to cause a transcript of the hearing to be made. Any party
requesting a copy of the transcript is responsible for its costs.
    Subd. 8. Compelled meetings; report. (a) In any proceeding under this chapter,
the chief administrative law judge or conductor of the proceeding may at any time in the
process require representatives from any petitioner, property owner, or involved city, town,
county, political subdivision, or other governmental entity to meet together to discuss
resolution of issues raised by the petition or order that confers jurisdiction on the chief
administrative law judge and other issues of mutual concern. The chief administrative
law judge or conductor of the proceeding may determine which entities are required
to participate in these discussions. The chief administrative law judge or conductor of
the proceeding may require that the parties meet at least three times during a 60-day
period. The parties shall designate a person to report to the chief administrative law
judge or conductor of the proceeding on the results of the meetings immediately after the
last meeting. The parties may be granted additional time at the discretion of the chief
administrative law judge or conductor of the proceedings.
(b) Any proposed resolution or settlement of contested issues that results in a
sanitary district formation, annexation, detachment, or dissolution; places conditions on
any future sanitary district formation, annexation, detachment, or dissolution; or results in
the withdrawal of an objection to a pending proceeding or the withdrawal of a pending
proceeding must be filed with the chief administrative law judge and is subject to the
applicable procedures and statutory criteria of this chapter.
    Subd. 9. Data from state agencies. The chief administrative law judge may
request boundary-related information that is otherwise classified as public data from any
state department or agency to assist in carrying out the chief administrative law judge's
duties under this chapter. The department or agency shall promptly furnish the requested
information.
    Subd. 10. Permanent official record. The chief administrative law judge shall
provide information about sanitary district creations, annexations, detachments, and
dissolutions to the Minnesota Pollution Control Agency. The Minnesota Pollution Control
Agency is responsible for maintaining the official record, including all documentation
related to the processes.
    Subd. 11. Shared program costs and fee revenue. The chief administrative
law judge and the Minnesota Pollution Control Agency shall agree on an amount to be
transferred from the Minnesota Pollution Control Agency to the chief administrative law
judge to pay for administration of this chapter, including publication and notification costs.
Sanitary district fees collected by the chief administrative law judge shall be deposited in
the environmental fund.
EFFECTIVE DATE.Subdivision 5 is effective the day following final enactment.

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

    Sec. 6. [442A.04] SANITARY DISTRICT CREATION.
    Subdivision 1. Sanitary district creation. (a) A sanitary district may be created
under this chapter for any territory embracing an area or a group of two or more adjacent
areas, whether contiguous or separate, but not situated entirely within the limits of a
single municipality. The proposed sanitary district must promote the public health and
welfare by providing an adequate and efficient system and means of collecting, conveying,
pumping, treating, and disposing of domestic sewage and garbage and industrial wastes
within the district. When the chief administrative law judge or the Minnesota Pollution
Control Agency finds that there is need throughout the territory for the accomplishment
of these purposes; that these purposes can be effectively accomplished on an equitable
basis by a district if created; and that the creation and maintenance of a district will be
administratively feasible and in furtherance of the public health, safety, and welfare, the
chief administrative law judge shall make an order creating the sanitary district. A sanitary
district is administratively feasible under this section if the district has the financial and
managerial resources needed to deliver adequate and efficient sanitary sewer services
within the proposed district.
(b) Notwithstanding paragraph (a), no district shall be created within 25 miles of the
boundary of any city of the first class without the approval of the governing body thereof
and the approval of the governing body of each and every municipality in the proposed
district by resolution filed with the chief administrative law judge.
(c) If the chief administrative law judge and the Minnesota Pollution Control Agency
disagree on the need to create a sanitary district, they must determine whether not allowing
the sanitary district formation will have a detrimental effect on the environment. If it is
determined that the sanitary district formation will prevent environmental harm, the sanitary
district creation or connection to an existing wastewater treatment system must occur.
    Subd. 2. Proceeding to create sanitary district. (a) A proceeding for the creation
of a district may be initiated by a petition to the chief administrative law judge containing
the following:
(1) a request for creation of the proposed district;
(2) the name proposed for the district, to include the words "sanitary district";
(3) a legal description of the territory of the proposed district, including justification
for inclusion or exclusion for all parcels;
(4) addresses of every property owner within the proposed district boundaries as
provided by the county auditor, with certification from the county auditor; two sets of
address labels for said owners; and a list of e-mail addresses for said owners, if available;
(5) a statement showing the existence in the territory of the conditions requisite for
creation of a district as prescribed in subdivision 1;
(6) a statement of the territorial units represented by and the qualifications of the
respective signers; and
(7) the post office address of each signer, given under the signer's signature.
A petition may consist of separate writings of like effect, each signed by one or more
qualified persons, and all such writings, when filed, shall be considered together as a
single petition.
(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
proposed creation of the district. At the meeting, information must be provided, including
a description of the district's proposed structure, bylaws, territory, ordinances, budget, and
charges and a description of the territory of the proposed district, including justification
for inclusion or exclusion for all parcels. Notice of the meeting must be published for two
successive weeks in a qualified newspaper, as defined under chapter 331A, published
within the territory of the proposed district or, if there is no qualified newspaper published
within the territory, in a qualified newspaper of general circulation in the territory, and
must be posted for two weeks in each territorial unit of the proposed district and on the
Web site of the proposed district, if one exists. Notice of the meeting must be mailed or
e-mailed at least three weeks prior to the meeting to all property tax billing addresses for
all parcels included in the proposed district. The following must be submitted to the chief
administrative law judge with the petition:
(1) a record of the meeting, including copies of all information provided at the
meeting;
(2) a copy of the mailing list provided by the county auditor and used to notify
property owners of the meeting;
(3) a copy of the e-mail list used to notify property owners of the meeting;
(4) the printer's affidavit of publication of public meeting notice;
(5) an affidavit of posting the public meeting notice with information on dates and
locations of posting; and
(6) the minutes or other record of the public meeting documenting that the following
topics were discussed: printer's affidavit of publication of each resolution, with a copy
of the resolution from the newspaper attached; and the affidavit of resolution posting
on the town or proposed district Web site.
(c) Every petition must be signed as follows:
(1) for each municipality wherein there is a territorial unit of the proposed district,
by an authorized officer pursuant to a resolution of the municipal governing body;
(2) for each organized town wherein there is a territorial unit of the proposed district,
by an authorized officer pursuant to a resolution of the town board;
(3) for each county wherein there is a territorial unit of the proposed district consisting
of an unorganized area, by an authorized officer pursuant to a resolution of the county
board or by at least 20 percent of the voters residing and owning land within the unit.
(d) Each resolution must be published in the official newspaper of the governing
body adopting it and becomes effective 40 days after publication, unless within said
period there shall be filed with the governing body a petition signed by qualified electors
of a territorial unit of the proposed district, equal in number to five percent of the number
of electors voting at the last preceding election of the governing body, requesting a
referendum on the resolution, in which case the resolution may not become effective until
approved by a majority of the qualified electors voting at a regular election or special
election that the governing body may call. The notice of an election and the ballot to be
used must contain the text of the resolution followed by the question: "Shall the above
resolution be approved?"
(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
the signer's landowner status as shown by the county auditor's tax assessment records,
certified by the auditor, shall be attached to or endorsed upon the petition.
(f) At any time before publication of the public notice required in subdivision 3,
additional signatures may be added to the petition or amendments of the petition may
be made to correct or remedy any error or defect in signature or otherwise except a
material error or defect in the description of the territory of the proposed district. If the
qualifications of any signer of a petition are challenged, the chief administrative law judge
shall determine the challenge forthwith on the allegations of the petition, the county
auditor's certificate of land ownership, and such other evidence as may be received.
    Subd. 3. Notice of intent to create sanitary district. (a) Upon receipt of a petition
and the record of the public meeting required under subdivision 2, the chief administrative
law judge shall publish a notice of intent to create the proposed sanitary district in the State
Register and mail or e-mail information of that publication to each property owner in the
affected territory at the owner's address as given by the county auditor. The information
must state the date that the notice will appear in the State Register and give the Web site
location for the State Register. The notice must:
(1) describe the petition for creation of the district;
(2) describe the territory affected by the petition;
(3) allow 30 days for submission of written comments on the petition;
(4) state that a person who objects to the petition may submit a written request for
hearing to the chief administrative law judge within 30 days of the publication of the
notice in the State Register; and
(5) state that if a timely request for hearing is not received, the chief administrative
law judge may make a decision on the petition.
(b) If 50 or more individual timely requests for hearing are received, the chief
administrative law judge must hold a hearing on the petition according to the contested
case provisions of chapter 14. The sanitary district proposers are responsible for paying all
costs involved in publicizing and holding a hearing on the petition.
    Subd. 4. Hearing time, place. If a hearing is required pursuant to subdivision 3, the
chief administrative law judge shall designate a time and place for a hearing according
to section 442A.13.
    Subd. 5. Relevant factors. (a) In arriving at a decision, the chief administrative law
judge shall consider the following factors:
(1) administrative feasibility under subdivision 1, paragraph (a);
(2) public health, safety, and welfare impacts;
(3) alternatives for managing the public health impacts;
(4) equities of the petition proposal;
(5) contours of the petition proposal; and
(6) public notification of and interaction on the petition proposal.
(b) Based on the factors in paragraph (a), the chief administrative law judge may
order the sanitary district creation on finding that:
(1) the proposed district is administratively feasible;
(2) the proposed district provides a long-term, equitable solution to pollution
problems affecting public health, safety, and welfare;
(3) property owners within the proposed district were provided notice of the
proposed district and opportunity to comment on the petition proposal; and
(4) the petition complied with the requirements of all applicable statutes and rules
pertaining to sanitary district creation.
(c) The chief administrative law judge may alter the boundaries of the proposed
sanitary district by increasing or decreasing the area to be included or may exclude
property that may be better served by another unit of government. The chief administrative
law judge may also alter the boundaries of the proposed district so as to follow visible,
clearly recognizable physical features for municipal boundaries.
(d) The chief administrative law judge may deny sanitary district creation if the area,
or a part thereof, would be better served by an alternative method.
(e) In all cases, the chief administrative law judge shall set forth the factors that are
the basis for the decision.
    Subd. 6. Findings; order. After the public notice period or the public hearing, if
required under subdivision 3, and based on the petition, any public comments received,
and, if a hearing was held, the hearing record, the chief administrative law judge shall
make findings of fact and conclusions determining whether the conditions requisite for the
creation of a district exist in the territory described in the petition. If the chief administrative
law judge finds that the conditions exist, the judge may make an order creating a district
for the territory described in that petition under the name proposed in the petition or such
other name, including the words "sanitary district," as the judge deems appropriate.
    Subd. 7. Denial of petition. If the chief administrative law judge, after conclusion
of the public notice period or holding a hearing, if required, determines that the creation of
a district in the territory described in the petition is not warranted, the judge shall make
an order denying the petition. The chief administrative law judge shall give notice of the
denial by mail or e-mail to each signer of the petition. No petition for the creation of a
district consisting of the same territory shall be entertained within a year after the date of
an order under this subdivision. Nothing in this subdivision precludes action on a petition
for the creation of a district embracing part of the territory with or without other territory.
    Subd. 8. Notice of order creating sanitary district. The chief administrative law
judge shall publish a notice in the State Register of the final order creating a sanitary
district, referring to the date of the order and describing the territory of the district, and
shall mail or e-mail information of the publication to each property owner in the affected
territory at the owner's address as given by the county auditor. The information must state
the date that the notice will appear in the State Register and give the Web site location
for the State Register. The notice must:
(1) describe the petition for creation of the district;
(2) describe the territory affected by the petition; and
(3) state that a certified copy of the order shall be delivered to the secretary of state
for filing ten days after public notice of the order in the State Register.
    Subd. 9. Filing. Ten days after public notice of the order in the State Register, the
chief administrative law judge shall deliver a certified copy of the order to the secretary
of state for filing. Thereupon, the creation of the district is deemed complete, and it
shall be conclusively presumed that all requirements of law relating thereto have been
complied with. The chief administrative law judge shall also transmit a certified copy of
the order for filing to the county auditor of each county and the clerk or recorder of each
municipality and organized town wherein any part of the territory of the district is situated
and to the secretary of the district board when elected.

    Sec. 7. [442A.05] SANITARY DISTRICT ANNEXATION.
    Subdivision 1. Annexation. (a) A sanitary district annexation may occur under
this chapter for any area adjacent to an existing district upon a petition to the chief
administrative law judge stating the grounds therefor as provided in this section.
(b) The proposed annexation area must embrace an area or a group of two or more
adjacent areas, whether contiguous or separate, but not situated entirely within the limits
of a single municipality. The proposed annexation must promote public health and
welfare by providing an adequate and efficient system and means of collecting, conveying,
pumping, treating, and disposing of domestic sewage and garbage and industrial wastes
within the district. When the chief administrative law judge or the Minnesota Pollution
Control Agency finds that there is need throughout the territory for the accomplishment of
these purposes, that these purposes can be effectively accomplished on an equitable basis
by annexation to a district, and that the creation and maintenance of such annexation will
be administratively feasible and in furtherance of the public health, safety, and welfare,
the chief administrative law judge shall make an order for sanitary district annexation. An
annexation is administratively feasible under this section if the district has the financial
and managerial resources needed to deliver adequate and efficient sanitary sewer services
within the proposed annexation.
(c) Notwithstanding paragraph (b), no annexation to a district shall be approved
within 25 miles of the boundary of any city of the first class without the approval
of the governing body thereof and the approval of the governing body of each and
every municipality in the proposed annexation area by resolution filed with the chief
administrative law judge.
(d) If the chief administrative law judge and the Minnesota Pollution Control Agency
disagree on the need for a sanitary district annexation, they must determine whether not
allowing the sanitary district annexation will have a detrimental effect on the environment.
If it is determined that the sanitary district annexation will prevent environmental harm,
the sanitary district annexation or connection to an existing wastewater treatment system
must occur.
    Subd. 2. Proceeding for annexation. (a) A proceeding for sanitary district
annexation may be initiated by a petition to the chief administrative law judge containing
the following:
(1) a request for proposed annexation to a sanitary district;
(2) a legal description of the territory of the proposed annexation, including
justification for inclusion or exclusion for all parcels;
(3) addresses of every property owner within the existing sanitary district and
proposed annexation area boundaries as provided by the county auditor, with certification
from the county auditor; two sets of address labels for said owners; and a list of e-mail
addresses for said owners, if available;
(4) a statement showing the existence in such territory of the conditions requisite
for annexation to a district as prescribed in subdivision 1;
(5) a statement of the territorial units represented by and qualifications of the
respective signers; and
(6) the post office address of each signer, given under the signer's signature.
A petition may consist of separate writings of like effect, each signed by one or more
qualified persons, and all such writings, when filed, shall be considered together as a
single petition.
(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
proposed annexation to a sanitary district. At the meeting, information must be provided,
including a description of the existing sanitary district's structure, bylaws, territory,
ordinances, budget, and charges; a description of the existing sanitary district's territory;
and a description of the territory of the proposed annexation area, including justification
for inclusion or exclusion for all parcels for the annexation area. Notice of the meeting
must be published for two successive weeks in a qualified newspaper, as defined under
chapter 331A, published within the territories of the existing sanitary district and proposed
annexation area or, if there is no qualified newspaper published within those territories, in
a qualified newspaper of general circulation in the territories, and must be posted for two
weeks in each territorial unit of the existing sanitary district and proposed annexation area
and on the Web site of the existing sanitary district, if one exists. Notice of the meeting
must be mailed or e-mailed at least three weeks prior to the meeting to all property tax
billing addresses for all parcels included in the existing sanitary district and proposed
annexation area. The following must be submitted to the chief administrative law judge
with the petition:
(1) a record of the meeting, including copies of all information provided at the
meeting;
(2) a copy of the mailing list provided by the county auditor and used to notify
property owners of the meeting;
(3) a copy of the e-mail list used to notify property owners of the meeting;
(4) the printer's affidavit of publication of the public meeting notice;
(5) an affidavit of posting the public meeting notice with information on dates and
locations of posting; and
(6) the minutes or other record of the public meeting documenting that the following
topics were discussed: printer's affidavit of publication of each resolution, with copy
of resolution from newspaper attached; and affidavit of resolution posting on town or
existing sanitary district Web site.
(c) Every petition must be signed as follows:
(1) by an authorized officer of the existing sanitary district pursuant to a resolution
of the board;
(2) for each municipality wherein there is a territorial unit of the proposed annexation
area, by an authorized officer pursuant to a resolution of the municipal governing body;
(3) for each organized town wherein there is a territorial unit of the proposed
annexation area, by an authorized officer pursuant to a resolution of the town board; and
(4) for each county wherein there is a territorial unit of the proposed annexation area
consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
county board or by at least 20 percent of the voters residing and owning land within the unit.
(d) Each resolution must be published in the official newspaper of the governing
body adopting it and becomes effective 40 days after publication, unless within said
period there shall be filed with the governing body a petition signed by qualified electors
of a territorial unit of the proposed annexation area, equal in number to five percent of the
number of electors voting at the last preceding election of the governing body, requesting
a referendum on the resolution, in which case the resolution may not become effective
until approved by a majority of the qualified electors voting at a regular election or special
election that the governing body may call. The notice of an election and the ballot to be
used must contain the text of the resolution followed by the question: "Shall the above
resolution be approved?"
(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
the signer's landowner status as shown by the county auditor's tax assessment records,
certified by the auditor, shall be attached to or endorsed upon the petition.
(f) At any time before publication of the public notice required in subdivision 4,
additional signatures may be added to the petition or amendments of the petition may be
made to correct or remedy any error or defect in signature or otherwise except a material
error or defect in the description of the territory of the proposed annexation area. If the
qualifications of any signer of a petition are challenged, the chief administrative law judge
shall determine the challenge forthwith on the allegations of the petition, the county
auditor's certificate of land ownership, and such other evidence as may be received.
    Subd. 3. Joint petition. Different areas may be annexed to a district in a single
proceeding upon a joint petition therefor and upon compliance with the provisions of
subdivisions 1 and 2 with respect to the area affected so far as applicable.
    Subd. 4. Notice of intent for sanitary district annexation. (a) Upon receipt
of a petition and the record of public meeting required under subdivision 2, the chief
administrative law judge shall publish a notice of intent for sanitary district annexation
in the State Register and mail or e-mail information of the publication to each property
owner in the affected territory at the owner's address as given by the county auditor. The
information must state the date that the notice will appear in the State Register and give
the Web site location for the State Register. The notice must:
(1) describe the petition for sanitary district annexation;
(2) describe the territory affected by the petition;
(3) allow 30 days for submission of written comments on the petition;
(4) state that a person who objects to the petition may submit a written request for
hearing to the chief administrative law judge within 30 days of the publication of the
notice in the State Register; and
(5) state that if a timely request for hearing is not received, the chief administrative
law judge may make a decision on the petition.
(b) If 50 or more individual timely requests for hearing are received, the chief
administrative law judge must hold a hearing on the petition according to the contested case
provisions of chapter 14. The sanitary district or annexation area proposers are responsible
for paying all costs involved in publicizing and holding a hearing on the petition.
    Subd. 5. Hearing time, place. If a hearing is required under subdivision 4, the
chief administrative law judge shall designate a time and place for a hearing according
to section 442A.13.
    Subd. 6. Relevant factors. (a) In arriving at a decision, the chief administrative law
judge shall consider the following factors:
(1) administrative feasibility under subdivision 1, paragraph (b);
(2) public health, safety, and welfare impacts;
(3) alternatives for managing the public health impacts;
(4) equities of the petition proposal;
(5) contours of the petition proposal; and
(6) public notification of and interaction on the petition proposal.
(b) Based upon these factors, the chief administrative law judge may order the
annexation to the sanitary district on finding that:
(1) the sanitary district is knowledgeable and experienced in delivering sanitary sewer
services to ratepayers and has provided quality service in a fair and cost-effective manner;
(2) the proposed annexation provides a long-term, equitable solution to pollution
problems affecting public health, safety, and welfare;
(3) property owners within the existing sanitary district and proposed annexation
area were provided notice of the proposed district and opportunity to comment on the
petition proposal; and
(4) the petition complied with the requirements of all applicable statutes and rules
pertaining to sanitary district annexation.
(c) The chief administrative law judge may alter the boundaries of the proposed
annexation area by increasing or decreasing the area to be included or may exclude
property that may be better served by another unit of government. The chief administrative
law judge may also alter the boundaries of the proposed annexation area so as to follow
visible, clearly recognizable physical features for municipal boundaries.
(d) The chief administrative law judge may deny sanitary district annexation if the
area, or a part thereof, would be better served by an alternative method.
(e) In all cases, the chief administrative law judge shall set forth the factors that are
the basis for the decision.
    Subd. 7. Findings; order. (a) After the public notice period or the public hearing, if
required under subdivision 4, and based on the petition, any public comments received,
and, if a hearing was held, the hearing record, the chief administrative law judge shall
make findings of fact and conclusions determining whether the conditions requisite for
the sanitary district annexation exist in the territory described in the petition. If the chief
administrative law judge finds that conditions exist, the judge may make an order for
sanitary district annexation for the territory described in the petition.
(b) All taxable property within the annexed area shall be subject to taxation for
any existing bonded indebtedness or other indebtedness of the district for the cost of
acquisition, construction, or improvement of any disposal system or other works or
facilities beneficial to the annexed area to such extent as the chief administrative law judge
may determine to be just and equitable, to be specified in the order for annexation. The
proper officers shall levy further taxes on such property accordingly.
    Subd. 8. Denial of petition. If the chief administrative law judge, after conclusion
of the public notice period or holding a hearing, if required, determines that the sanitary
district annexation in the territory described in the petition is not warranted, the judge shall
make an order denying the petition. The chief administrative law judge shall give notice
of the denial by mail or e-mail to each signer of the petition. No petition for a sanitary
district annexation consisting of the same territory shall be entertained within a year
after the date of an order under this subdivision. Nothing in this subdivision precludes
action on a petition for a sanitary district annexation embracing part of the territory with
or without other territory.
    Subd. 9. Notice of order for sanitary district annexation. The chief administrative
law judge shall publish in the State Register a notice of the final order for sanitary district
annexation, referring to the date of the order and describing the territory of the annexation
area, and shall mail or e-mail information of the publication to each property owner in the
affected territory at the owner's address as given by the county auditor. The information
must state the date that the notice will appear in the State Register and give the Web site
location for the State Register. The notice must:
(1) describe the petition for annexation to the district;
(2) describe the territory affected by the petition; and
(3) state that a certified copy of the order shall be delivered to the secretary of state
for filing ten days after public notice of the order in the State Register.
    Subd. 10. Filing. Ten days after public notice of the order in the State Register, the
chief administrative law judge shall deliver a certified copy of the order to the secretary
of state for filing. Thereupon, the sanitary district annexation is deemed complete, and it
shall be conclusively presumed that all requirements of law relating thereto have been
complied with. The chief administrative law judge shall also transmit a certified copy of
the order for filing to the county auditor of each county and the clerk or recorder of each
municipality and organized town wherein any part of the territory of the district, including
the newly annexed area, is situated and to the secretary of the district board.

    Sec. 8. [442A.06] SANITARY DISTRICT DETACHMENT.
    Subdivision 1. Detachment. (a) A sanitary district detachment may occur under this
chapter for any area within an existing district upon a petition to the chief administrative
law judge stating the grounds therefor as provided in this section.
(b) The proposed detachment must not have any negative environmental impact
on the proposed detachment area.
(c) If the chief administrative law judge and the Minnesota Pollution Control
Agency disagree on the need for a sanitary district detachment, they must determine
whether not allowing the sanitary district detachment will have a detrimental effect on
the environment. If it is determined that the sanitary district detachment will cause
environmental harm, the sanitary district detachment is not allowed unless the detached
area is immediately connected to an existing wastewater treatment system.
    Subd. 2. Proceeding for detachment. (a) A proceeding for sanitary district
detachment may be initiated by a petition to the chief administrative law judge containing
the following:
(1) a request for proposed detachment from a sanitary district;
(2) a statement that the requisite conditions for inclusion in a district no longer exist
in the proposed detachment area;
(3) a legal description of the territory of the proposed detachment, including
justification for inclusion or exclusion for all parcels;
(4) addresses of every property owner within the sanitary district and proposed
detachment area boundaries as provided by the county auditor, with certification from the
county auditor; two sets of address labels for said owners; and a list of e-mail addresses
for said owners, if available;
(5) a statement of the territorial units represented by and qualifications of the
respective signers; and
(6) the post office address of each signer, given under the signer's signature.
A petition may consist of separate writings of like effect, each signed by one or more
qualified persons, and all such writings, when filed, shall be considered together as a
single petition.
(b) Petitioners must conduct and pay for a public meeting to inform citizens of
the proposed detachment from a sanitary district. At the meeting, information must be
provided, including a description of the existing district's territory and a description of the
territory of the proposed detachment area, including justification for inclusion or exclusion
for all parcels for the detachment area. Notice of the meeting must be published for two
successive weeks in a qualified newspaper, as defined under chapter 331A, published
within the territories of the existing sanitary district and proposed detachment area or, if
there is no qualified newspaper published within those territories, in a qualified newspaper
of general circulation in the territories, and must be posted for two weeks in each territorial
unit of the existing sanitary district and proposed detachment area and on the Web site
of the existing sanitary district, if one exists. Notice of the meeting must be mailed or
e-mailed at least three weeks prior to the meeting to all property tax billing addresses for
all parcels included in the sanitary district. The following must be submitted to the chief
administrative law judge with the petition:
(1) a record of the meeting, including copies of all information provided at the
meeting;
(2) a copy of the mailing list provided by the county auditor and used to notify
property owners of the meeting;
(3) a copy of the e-mail list used to notify property owners of the meeting;
(4) the printer's affidavit of publication of public meeting notice;
(5) an affidavit of posting the public meeting notice with information on dates and
locations of posting; and
(6) minutes or other record of the public meeting documenting that the following
topics were discussed: printer's affidavit of publication of each resolution, with copy
of resolution from newspaper attached; and affidavit of resolution posting on town or
existing sanitary district Web site.
(c) Every petition must be signed as follows:
(1) by an authorized officer of the existing sanitary district pursuant to a resolution
of the board;
(2) for each municipality wherein there is a territorial unit of the proposed detachment
area, by an authorized officer pursuant to a resolution of the municipal governing body;
(3) for each organized town wherein there is a territorial unit of the proposed
detachment area, by an authorized officer pursuant to a resolution of the town board; and
(4) for each county wherein there is a territorial unit of the proposed detachment area
consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
county board or by at least 20 percent of the voters residing and owning land within the unit.
(d) Each resolution must be published in the official newspaper of the governing
body adopting it and becomes effective 40 days after publication, unless within said period
there shall be filed with the governing body a petition signed by qualified electors of a
territorial unit of the proposed detachment area, equal in number to five percent of the
number of electors voting at the last preceding election of the governing body, requesting
a referendum on the resolution, in which case the resolution may not become effective
until approved by a majority of the qualified electors voting at a regular election or special
election that the governing body may call. The notice of an election and the ballot to be
used must contain the text of the resolution followed by the question: "Shall the above
resolution be approved?"
(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
the signer's landowner status as shown by the county auditor's tax assessment records,
certified by the auditor, shall be attached to or endorsed upon the petition.
(f) At any time before publication of the public notice required in subdivision 4,
additional signatures may be added to the petition or amendments of the petition may be
made to correct or remedy any error or defect in signature or otherwise except a material
error or defect in the description of the territory of the proposed detachment area. If the
qualifications of any signer of a petition are challenged, the chief administrative law judge
shall determine the challenge forthwith on the allegations of the petition, the county
auditor's certificate of land ownership, and such other evidence as may be received.
    Subd. 3. Joint petition. Different areas may be detached from a district in a single
proceeding upon a joint petition therefor and upon compliance with the provisions of
subdivisions 1 and 2 with respect to the area affected so far as applicable.
    Subd. 4. Notice of intent for sanitary district detachment. (a) Upon receipt
of a petition and record of public meeting required under subdivision 2, the chief
administrative law judge shall publish a notice of intent for sanitary district detachment
in the State Register and mail or e-mail information of the publication to each property
owner in the affected territory at the owner's address as given by the county auditor. The
information must state the date that the notice will appear in the State Register and give
the Web site location for the State Register. The notice must:
(1) describe the petition for sanitary district detachment;
(2) describe the territory affected by the petition;
(3) allow 30 days for submission of written comments on the petition;
(4) state that a person who objects to the petition may submit a written request for
hearing to the chief administrative law judge within 30 days of the publication of the
notice in the State Register; and
(5) state that if a timely request for hearing is not received, the chief administrative
law judge may make a decision on the petition.
(b) If 50 or more individual timely requests for hearing are received, the chief
administrative law judge must hold a hearing on the petition according to the contested case
provisions of chapter 14. The sanitary district or detachment area proposers are responsible
for paying all costs involved in publicizing and holding a hearing on the petition.
    Subd. 5. Hearing time, place. If a hearing is required under subdivision 4, the
chief administrative law judge shall designate a time and place for a hearing according
to section 442A.13.
    Subd. 6. Relevant factors. (a) In arriving at a decision, the chief administrative law
judge shall consider the following factors:
(1) public health, safety, and welfare impacts for the proposed detachment area;
(2) alternatives for managing the public health impacts for the proposed detachment
area;
(3) equities of the petition proposal;
(4) contours of the petition proposal; and
(5) public notification of and interaction on the petition proposal.
(b) Based upon these factors, the chief administrative law judge may order the
detachment from the sanitary district on finding that:
(1) the proposed detachment area has adequate alternatives for managing public
health impacts due to the detachment;
(2) the proposed detachment area is not necessary for the district to provide a
long-term, equitable solution to pollution problems affecting public health, safety, and
welfare;
(3) property owners within the existing sanitary district and proposed detachment
area were provided notice of the proposed detachment and opportunity to comment on
the petition proposal; and
(4) the petition complied with the requirements of all applicable statutes and rules
pertaining to sanitary district detachment.
(c) The chief administrative law judge may alter the boundaries of the proposed
detachment area by increasing or decreasing the area to be included or may exclude
property that may be better served by another unit of government. The chief administrative
law judge may also alter the boundaries of the proposed detachment area so as to follow
visible, clearly recognizable physical features for municipal boundaries.
(d) The chief administrative law judge may deny sanitary district detachment if the
area, or a part thereof, would be better served by an alternative method.
(e) In all cases, the chief administrative law judge shall set forth the factors that are
the basis for the decision.
    Subd. 7. Findings; order. (a) After the public notice period or the public hearing, if
required under subdivision 4, and based on the petition, any public comments received,
and, if a hearing was held, the hearing record, the chief administrative law judge shall
make findings of fact and conclusions determining whether the conditions requisite for
the sanitary district detachment exist in the territory described in the petition. If the chief
administrative law judge finds that conditions exist, the judge may make an order for
sanitary district detachment for the territory described in the petition.
(b) All taxable property within the detached area shall remain subject to taxation
for any existing bonded indebtedness of the district to such extent as it would have been
subject thereto if not detached and shall also remain subject to taxation for any other
existing indebtedness of the district incurred for any purpose beneficial to such area to
such extent as the chief administrative law judge may determine to be just and equitable,
to be specified in the order for detachment. The proper officers shall levy further taxes on
such property accordingly.
    Subd. 8. Denial of petition. If the chief administrative law judge, after conclusion
of the public notice period or holding a hearing, if required, determines that the sanitary
district detachment in the territory described in the petition is not warranted, the judge
shall make an order denying the petition. The chief administrative law judge shall give
notice of the denial by mail or e-mail to each signer of the petition. No petition for a
detachment from a district consisting of the same territory shall be entertained within a
year after the date of an order under this subdivision. Nothing in this subdivision precludes
action on a petition for a detachment from a district embracing part of the territory with
or without other territory.
    Subd. 9. Notice of order for sanitary district detachment. The chief
administrative law judge shall publish in the State Register a notice of the final order
for sanitary district detachment, referring to the date of the order and describing the
territory of the detached area and shall mail or e-mail information of the publication
to each property owner in the affected territory at the owner's address as given by the
county auditor. The information must state the date that the notice will appear in the State
Register and give the Web site location for the State Register. The notice must:
(1) describe the petition for detachment from the district;
(2) describe the territory affected by the petition; and
(3) state that a certified copy of the order shall be delivered to the secretary of state
for filing ten days after public notice of the order in the State Register.
    Subd. 10. Filing. Ten days after public notice of the order in the State Register, the
chief administrative law judge shall deliver a certified copy of the order to the secretary of
state for filing. Thereupon, the sanitary district detachment is deemed complete, and it
shall be conclusively presumed that all requirements of law relating thereto have been
complied with. The chief administrative law judge shall also transmit a certified copy of
the order for filing to the county auditor of each county and the clerk or recorder of each
municipality and organized town wherein any part of the territory of the district, including
the newly detached area, is situated and to the secretary of the district board.

    Sec. 9. [442A.07] SANITARY DISTRICT DISSOLUTION.
    Subdivision 1. Dissolution. (a) An existing sanitary district may be dissolved under
this chapter upon a petition to the chief administrative law judge stating the grounds
therefor as provided in this section.
(b) The proposed dissolution must not have any negative environmental impact on
the existing sanitary district area.
(c) If the chief administrative law judge and the Minnesota Pollution Control
Agency disagree on the need to dissolve a sanitary district, they must determine whether
not dissolving the sanitary district will have a detrimental effect on the environment. If
it is determined that the sanitary district dissolution will cause environmental harm, the
sanitary district dissolution is not allowed unless the existing sanitary district area is
immediately connected to an existing wastewater treatment system.
    Subd. 2. Proceeding for dissolution. (a) A proceeding for sanitary district
dissolution may be initiated by a petition to the chief administrative law judge containing
the following:
(1) a request for proposed sanitary district dissolution;
(2) a statement that the requisite conditions for a sanitary district no longer exist
in the district area;
(3) a proposal for distribution of the remaining funds of the district, if any, among
the related governmental subdivisions;
(4) a legal description of the territory of the proposed dissolution;
(5) addresses of every property owner within the sanitary district boundaries as
provided by the county auditor, with certification from the county auditor; two sets of
address labels for said owners; and a list of e-mail addresses for said owners, if available;
(6) a statement of the territorial units represented by and the qualifications of the
respective signers; and
(7) the post office address of each signer, given under the signer's signature.
A petition may consist of separate writings of like effect, each signed by one or more
qualified persons, and all such writings, when filed, shall be considered together as a
single petition.
(b) Petitioners must conduct and pay for a public meeting to inform citizens of the
proposed dissolution of a sanitary district. At the meeting, information must be provided,
including a description of the existing district's territory. Notice of the meeting must be
published for two successive weeks in a qualified newspaper, as defined under chapter
331A, published within the territory of the sanitary district or, if there is no qualified
newspaper published within that territory, in a qualified newspaper of general circulation
in the territory and must be posted for two weeks in each territorial unit of the sanitary
district and on the Web site of the existing sanitary district, if one exists. Notice of the
meeting must be mailed or e-mailed at least three weeks prior to the meeting to all property
tax billing addresses for all parcels included in the sanitary district. The following must be
submitted to the chief administrative law judge with the petition:
(1) a record of the meeting, including copies of all information provided at the
meeting;
(2) a copy of the mailing list provided by the county auditor and used to notify
property owners of the meeting;
(3) a copy of the e-mail list used to notify property owners of the meeting;
(4) the printer's affidavit of publication of public meeting notice;
(5) an affidavit of posting the public meeting notice with information on dates and
locations of posting; and
(6) minutes or other record of the public meeting documenting that the following
topics were discussed: printer's affidavit of publication of each resolution, with copy
of resolution from newspaper attached; and affidavit of resolution posting on town or
existing sanitary district Web site.
(c) Every petition must be signed as follows:
(1) by an authorized officer of the existing sanitary district pursuant to a resolution
of the board;
(2) for each municipality wherein there is a territorial unit of the existing sanitary
district, by an authorized officer pursuant to a resolution of the municipal governing body;
(3) for each organized town wherein there is a territorial unit of the existing sanitary
district, by an authorized officer pursuant to a resolution of the town board; and
(4) for each county wherein there is a territorial unit of the existing sanitary district
consisting of an unorganized area, by an authorized officer pursuant to a resolution of the
county board or by at least 20 percent of the voters residing and owning land within the unit.
(d) Each resolution must be published in the official newspaper of the governing body
adopting it and becomes effective 40 days after publication, unless within said period there
shall be filed with the governing body a petition signed by qualified electors of a territorial
unit of the district, equal in number to five percent of the number of electors voting at the
last preceding election of the governing body, requesting a referendum on the resolution,
in which case the resolution may not become effective until approved by a majority of the
qualified electors voting at a regular election or special election that the governing body
may call. The notice of an election and the ballot to be used must contain the text of the
resolution followed by the question: "Shall the above resolution be approved?"
(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to
the signer's landowner status as shown by the county auditor's tax assessment records,
certified by the auditor, shall be attached to or endorsed upon the petition.
(f) At any time before publication of the public notice required in subdivision 3,
additional signatures may be added to the petition or amendments of the petition may be
made to correct or remedy any error or defect in signature or otherwise except a material
error or defect in the description of the territory of the proposed dissolution area. If the
qualifications of any signer of a petition are challenged, the chief administrative law judge
shall determine the challenge forthwith on the allegations of the petition, the county
auditor's certificate of land ownership, and such other evidence as may be received.
    Subd. 3. Notice of intent for sanitary district dissolution. (a) Upon receipt
of a petition and record of the public meeting required under subdivision 2, the chief
administrative law judge shall publish a notice of intent of sanitary district dissolution
in the State Register and mail or e-mail information of the publication to each property
owner in the affected territory at the owner's address as given by the county auditor. The
information must state the date that the notice will appear in the State Register and give
the Web site location for the State Register. The notice must:
(1) describe the petition for sanitary district dissolution;
(2) describe the territory affected by the petition;
(3) allow 30 days for submission of written comments on the petition;
(4) state that a person who objects to the petition may submit a written request for
hearing to the chief administrative law judge within 30 days of the publication of the
notice in the State Register; and
(5) state that if a timely request for hearing is not received, the chief administrative
law judge may make a decision on the petition.
(b) If 50 or more individual timely requests for hearing are received, the chief
administrative law judge must hold a hearing on the petition according to the contested
case provisions of chapter 14. The sanitary district dissolution proposers are responsible
for paying all costs involved in publicizing and holding a hearing on the petition.
    Subd. 4. Hearing time, place. If a hearing is required under subdivision 3, the
chief administrative law judge shall designate a time and place for a hearing according
to section 442A.13.
    Subd. 5. Relevant factors. (a) In arriving at a decision, the chief administrative law
judge shall consider the following factors:
(1) public health, safety, and welfare impacts for the proposed dissolution;
(2) alternatives for managing the public health impacts for the proposed dissolution;
(3) equities of the petition proposal;
(4) contours of the petition proposal; and
(5) public notification of and interaction on the petition proposal.
(b) Based upon these factors, the chief administrative law judge may order the
dissolution of the sanitary district on finding that:
(1) the proposed dissolution area has adequate alternatives for managing public
health impacts due to the dissolution;
(2) the sanitary district is not necessary to provide a long-term, equitable solution to
pollution problems affecting public health, safety, and welfare;
(3) property owners within the sanitary district were provided notice of the proposed
dissolution and opportunity to comment on the petition proposal; and
(4) the petition complied with the requirements of all applicable statutes and rules
pertaining to sanitary district dissolution.
(c) The chief administrative law judge may alter the boundaries of the proposed
dissolution area by increasing or decreasing the area to be included or may exclude
property that may be better served by another unit of government. The chief administrative
law judge may also alter the boundaries of the proposed dissolution area so as to follow
visible, clearly recognizable physical features for municipal boundaries.
(d) The chief administrative law judge may deny sanitary district dissolution if the
area, or a part thereof, would be better served by an alternative method.
(e) In all cases, the chief administrative law judge shall set forth the factors that are
the basis for the decision.
    Subd. 6. Findings; order. (a) After the public notice period or the public hearing, if
required under subdivision 3, and based on the petition, any public comments received,
and, if a hearing was held, the hearing record, the chief administrative law judge shall
make findings of fact and conclusions determining whether the conditions requisite for
the sanitary district dissolution exist in the territory described in the petition. If the chief
administrative law judge finds that conditions exist, the judge may make an order for
sanitary district dissolution for the territory described in the petition.
(b) If the chief administrative law judge determines that the conditions requisite for
the creation of the district no longer exist therein, that all indebtedness of the district has
been paid, and that all property of the district except funds has been disposed of, the judge
may make an order dissolving the district and directing the distribution of its remaining
funds, if any, among the related governmental subdivisions on such basis as the chief
administrative law judge determines to be just and equitable, to be specified in the order.
    Subd. 7. Denial of petition. If the chief administrative law judge, after conclusion
of the public notice period or holding a hearing, if required, determines that the sanitary
district dissolution in the territory described in the petition is not warranted, the judge
shall make an order denying the petition. The chief administrative law judge shall give
notice of the denial by mail or e-mail to each signer of the petition. No petition for the
dissolution of a district consisting of the same territory shall be entertained within a year
after the date of an order under this subdivision.
    Subd. 8. Notice of order for sanitary district dissolution. The chief administrative
law judge shall publish in the State Register a notice of the final order for sanitary
district dissolution, referring to the date of the order and describing the territory of the
dissolved district and shall mail or e-mail information of the publication to each property
owner in the affected territory at the owner's address as given by the county auditor. The
information must state the date that the notice will appear in the State Register and give
the Web site location of the State Register. The notice must:
(1) describe the petition for dissolution of the district;
(2) describe the territory affected by the petition; and
(3) state that a certified copy of the order shall be delivered to the secretary of state
for filing ten days after public notice of the order in the State Register.
    Subd. 9. Filing. (a) Ten days after public notice of the order in the State Register,
the chief administrative law judge shall deliver a certified copy of the order to the secretary
of state for filing. Thereupon, the sanitary district dissolution is deemed complete, and it
shall be conclusively presumed that all requirements of law relating thereto have been
complied with. The chief administrative law judge shall also transmit a certified copy of
the order for filing to the county auditor of each county and the clerk or recorder of each
municipality and organized town wherein any part of the territory of the dissolved district
is situated and to the secretary of the district board.
(b) The chief administrative law judge shall also transmit a certified copy of the order
to the treasurer of the district, who must thereupon distribute the remaining funds of the
district as directed by the order and who is responsible for the funds until so distributed.

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

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

    Sec. 12. [442A.10] PETITIONERS TO PAY EXPENSES.
Expenses of the preparation and submission of petitions in the proceedings under
sections 442A.04 to 442A.09 shall be paid by the petitioners. Notwithstanding section
16A.1283, the Office of Administrative Hearings may adopt rules according to section
14.386 to establish fees necessary to support the preparation and submission of petitions
in proceedings under sections 442A.04 to 442A.09. The fees collected by the Office of
Administrative Hearings shall be deposited in the environmental fund.
EFFECTIVE DATE.This section is effective the day following final enactment.

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

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

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

    Sec. 16. [442A.14] DISTRICT BOARD OF MANAGERS.
    Subdivision 1. Composition. The governing body of each district shall be a board
of managers of five members, who shall be voters residing in the district and who may
but need not be officers, members of governing bodies, or employees of the related
governmental subdivisions, except that when there are more than five territorial units in
a district, there must be one board member for each unit.
    Subd. 2. Terms. The terms of the first board members elected after creation of a
district shall be so arranged and determined by the electing body as to expire on the first
business day in January as follows:
(1) the terms of two members in the second calendar year after the year in which
they were elected;
(2) the terms of two other members in the third calendar year after the year in which
they were elected; and
(3) the term of the remaining member in the fourth calendar year after the year in
which the member was elected. In case a board has more than five members, the additional
members shall be assigned to the groups under clauses (1) to (3) to equalize the groups as
far as practicable. Thereafter, board members shall be elected successively for regular
terms beginning upon expiration of the preceding terms and expiring on the first business
day in January of the third calendar year thereafter. Each board member serves until
a successor is elected and has qualified.
    Subd. 3. Election of board. In a district having only one territorial unit, all the
members of the board shall be elected by the related governing body. In a district having
more than one territorial unit, the members of the board shall be elected by the members
of the related governing bodies in joint session except as otherwise provided. The electing
bodies concerned shall meet and elect the first board members of a new district as soon
as practicable after creation of the district and shall meet and elect board members for
succeeding regular terms as soon as practicable after November 1 next preceding the
beginning of the terms to be filled, respectively.
    Subd. 4. Central related governing body. Upon the creation of a district
having more than one territorial unit, the chief administrative law judge, on the basis of
convenience for joint meeting purposes, shall designate one of the related governing
bodies as the central related governing body in the order creating the district or in a
subsequent special order, of which the chief administrative law judge shall notify the
clerks or recorders of all the related governing bodies. Upon receipt of the notification,
the clerk or recorder of the central related governing body shall immediately transmit the
notification to the presiding officer of the body. The officer shall thereupon call a joint
meeting of the members of all the related governing bodies to elect board members, to
be held at such time as the officer shall fix at the regular meeting place of the officer's
governing body or at such other place in the district as the officer shall determine. The
clerk or recorder of the body must give at least ten days' notice of the meeting by mail to
the clerks or recorders of all the other related governing bodies, who shall immediately
transmit the notice to all the members of the related governing bodies, respectively.
Subsequent joint meetings to elect board members for regular terms must be called and
held in like manner. The presiding officer and the clerk or recorder of the central related
governing body shall act respectively as chair and secretary of the joint electing body at
any meeting thereof, but in case of the absence or disability of either of them, the body
may elect a temporary substitute. A majority of the members of each related governing
body is required for a quorum at any meeting of the joint electing body.
    Subd. 5. Nominations. Nominations for board members may be made by petitions,
each signed by ten or more voters residing and owning land in the district, filed with the
clerk, recorder, or secretary of the electing body before the election meeting. No person
shall sign more than one petition. The electing body shall give due consideration to all
nominations but is not limited thereto.
    Subd. 6. Election; single governing body. In the case of an electing body
consisting of a single related governing body, a majority vote of all members is required
for an election. In the case of a joint electing body, a majority vote of members present is
required for an election. In case of lack of a quorum or failure to elect, a meeting of an
electing body may be adjourned to a stated time and place without further notice.
    Subd. 7. Election; multiple governing bodies. In any district having more than
one territorial unit, the related governing bodies, instead of meeting in joint session, may
elect a board member by resolutions adopted by all of them separately, concurring in the
election of the same person. A majority vote of all members of each related governing
body is required for the adoption of any such resolution. The clerks or recorders of the
other related governing bodies shall transmit certified copies of the resolutions to the clerk
or recorder of the central related governing body. Upon receipt of concurring resolutions
from all the related governing bodies, the presiding officer and clerk or recorder of the
central related governing body shall certify the results and furnish certificates of election
as provided for a joint meeting.
    Subd. 8. Vacancies. Any vacancy in the membership of a board must be filled for
the unexpired term in like manner as provided for the regular election of board members.
    Subd. 9. Certification of election; temporary chair. The presiding and recording
officers of the electing body shall certify the results of each election to the county auditor
of each county wherein any part of the district is situated and to the clerk or recorder of
each related governing body and shall make and transmit to each board member elected
a certificate of the board member's election. Upon electing the first board members of a
district, the presiding officer of the electing body shall designate a member to serve as
temporary chair for purposes of initial organization of the board, and the recording
officer of the body shall include written notice thereof to all the board members with
their certificates of election.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Sec. 32. REPEALER.
Minnesota Statutes 2012, sections 115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, and 10;
115.19; 115.20; 115.21; 115.22; 115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29;
115.30; 115.31; 115.32; 115.33; 115.34; 115.35; 115.36; and 115.37, are repealed.

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