1.1                          A bill for an act 
  1.2             relating to natural resources; modifying provisions 
  1.3             for motorized trail grants-in-aid; requiring 
  1.4             implementation of recommendations for state-funded 
  1.5             motorized recreational trails; requiring rulemaking; 
  1.6             amending Minnesota Statutes 2003 Supplement, section 
  1.7             84.930. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.10  84.930, is amended to read: 
  1.11     84.930 [MOTORIZED TRAIL GRANTS-IN-AID.] 
  1.12     Subdivision 1.  [INITIAL VIOLATION.] (a) This section 
  1.13  applies to grants-in-aid for motorized trail construction and 
  1.14  maintenance under sections 84.794, 84.803, 84.83, and 84.927. 
  1.15     (b) If the commissioner of natural resources determines 
  1.16  that a grant-in-aid recipient has violated any federal or state 
  1.17  law, any local ordinance, or any of the terms of the grant 
  1.18  agreement with the commissioner, the commissioner may must 
  1.19  withhold all grant payments for any work occurring after the 
  1.20  date the recipient was notified of the violation and must seek 
  1.21  restitution for any property damage caused by the 
  1.22  violation.  For a first violation, the commissioner must issue a 
  1.23  warning that subsequent violations will result in the penalties 
  1.24  under subdivision 2. 
  1.25     Subd. 2.  [SUBSEQUENT VIOLATIONS.] If, after a first 
  1.26  violation under subdivision 1, the commissioner determines that 
  2.1   a grant-in-aid recipient has again violated any federal or state 
  2.2   law, any local ordinance, or any of the terms of the grant 
  2.3   agreement with the commissioner, the commissioner must impose 
  2.4   the penalties under subdivision 1, and must: 
  2.5      (1) for a second violation, suspend any grant payments and 
  2.6   disallow grant eligibility for one year; and 
  2.7      (2) for a third or subsequent violation, designate the 
  2.8   grant recipient as ineligible for any future grant. 
  2.9      (c) Subd. 3.  [APPEAL.] A grant-in-aid recipient may appeal 
  2.10  the commissioner's decision under paragraph (b) subdivision 1 or 
  2.11  2 in a contested case hearing under section 14.58. 
  2.12     Sec. 2.  [REQUIRED RULEMAKING; MOTORIZED TRAILS.] 
  2.13     (a) The commissioner of natural resources shall adopt rules 
  2.14  to implement the recommendations of the Office of the 
  2.15  Legislative Auditor, contained in the program evaluation report 
  2.16  "State-Funded Trails for Motorized Recreation" (January 2003), 
  2.17  including but not limited to the following: 
  2.18     (1) increase the level of oversight that the commissioner 
  2.19  provides off-highway vehicle grants-in-aid trails and not rely 
  2.20  on indirect and ad hoc oversight.  According to the auditor's 
  2.21  report, the commissioner shall adopt the oversight process used 
  2.22  in Michigan, which requires clubs to submit engineering plans 
  2.23  before trail work on public land is carried out and requires the 
  2.24  commissioner to inspect the trail work after it is completed; 
  2.25     (2) prohibit a local government sponsor from assigning 
  2.26  oversight responsibility for snowmobile or off-highway vehicle 
  2.27  trail grants to a local government official who serves as an 
  2.28  officer or bookkeeper of a grant recipient; and 
  2.29     (3) require a wetlands inspection by a trained professional 
  2.30  when a grant recipient proposes moving earth, such as filling or 
  2.31  grading, for an existing or new off-highway vehicle trail 
  2.32  alignment, to determine whether a wetland permit is required. 
  2.33     (b) The commissioner shall publish the proposed rules under 
  2.34  paragraph (a) within 60 days of the effective date of this act. 
  2.35     Sec. 3.  [EFFECTIVE DATE.] 
  2.36     Sections 1 and 2 are effective the day following final 
  3.1   enactment.