1.1                          A bill for an act 
  1.2             relating to the organization and operation of state 
  1.3             government; appropriating money for environmental, 
  1.4             natural resource, and agricultural purposes; providing 
  1.5             for regulation of certain activities and practices; 
  1.6             amending Minnesota Statutes 1996, sections 17.59, 
  1.7             subdivision 4; 35.82, subdivision 2; 41A.09, 
  1.8             subdivision 1a; 84.871; 84.943, subdivision 3; 
  1.9             86B.313, subdivision 3, and by adding subdivisions; 
  1.10            86B.415, by adding a subdivision; 89A.03, subdivision 
  1.11            1; 90.193; 93.002, subdivision 1; 103F.155, 
  1.12            subdivision 2; 103F.161, subdivision 2; 103G.271, 
  1.13            subdivision 6; 116.011; 116.07, by adding a 
  1.14            subdivision; 308A.131, subdivision 1; and 308A.705, 
  1.15            subdivision 3; Minnesota Statutes 1997 Supplement, 
  1.16            sections 41A.09, subdivision 3a; 115.55, subdivision 
  1.17            5a; 116.07, subdivision 7; 116.18, subdivision 3c; and 
  1.18            308A.705, subdivision 1; proposing coding for new law 
  1.19            in Minnesota Statutes, chapters 17; 85; 86B; and 116; 
  1.20            proposing coding for new law as Minnesota Statutes, 
  1.21            chapter 18G. 
  1.22  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.23  Section 1.  [ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.] 
  1.24     The sums in the columns headed "APPROPRIATIONS" are 
  1.25  appropriated from the general fund, or another named fund, to 
  1.26  the agencies and for the purposes specified in this act to be 
  1.27  available for the fiscal years indicated for each purpose.  The 
  1.28  figures "1998" and "1999," where used in this act, mean that the 
  1.29  appropriation or appropriations listed under them are available 
  1.30  for the year ending June 30, 1998, or June 30, 1999, 
  1.31  respectively. 
  1.32                          SUMMARY BY FUND
  1.33                                            1998         1999
  2.1   General Fund                          $5,416,000     $9,408,000
  2.2                                              APPROPRIATIONS 
  2.3                                          Available for the Year 
  2.4                                              Ending June 30 
  2.5                                             1998         1999 
  2.6   Sec. 2.  POLLUTION CONTROL
  2.7   AGENCY                                     -0-        1,625,000
  2.8   $50,000 is for a scoping study for a 
  2.9   cost-benefit model to analyze the costs 
  2.10  of water quality standards.  This is a 
  2.11  one-time appropriation. 
  2.12  $375,000 is for acceleration of 
  2.13  research being conducted on deformities 
  2.14  and possible causes found in 
  2.15  amphibians.  The funding must be shared 
  2.16  with the departments of agriculture, 
  2.17  natural resources, and health and with 
  2.18  the appropriate University of Minnesota 
  2.19  departments.  $39,000 of the 
  2.20  appropriation must be shared with 
  2.21  Hamline University for its friends of 
  2.22  the frog program.  The money must be 
  2.23  used for research and monitoring of 
  2.24  amphibian deformities, including, but 
  2.25  not limited to, a possible groundwater 
  2.26  surface water interconnection.  The 
  2.27  money may be used as a match for any 
  2.28  federal dollars available.  This is a 
  2.29  one-time appropriation. 
  2.30  $1,000,000 is for grants to local units 
  2.31  of government for the individual sewage 
  2.32  treatment system program under 
  2.33  Minnesota Statutes, section 116.18, 
  2.34  subdivision 3c. 
  2.35  $200,000 is for technical assistance 
  2.36  for lake monitoring, assessment, and 
  2.37  analysis. 
  2.38  The availability of the appropriation 
  2.39  in Laws 1997, chapter 216, section 15, 
  2.40  subdivision 14, paragraph (c), to 
  2.41  monitor and research the effects of 
  2.42  endocrine disrupting chemicals in 
  2.43  surface waters is extended to June 30, 
  2.44  2000. 
  2.45  Sec. 3.  ZOOLOGICAL BOARD                500,000         -0-   
  2.46  $500,000 is for zoo operations.  This 
  2.47  is a one-time supplemental 
  2.48  appropriation.  By September 1, 1998, 
  2.49  the board shall report to the governor, 
  2.50  the chair of the senate environment and 
  2.51  agriculture budget division, and the 
  2.52  chair of the house environment, natural 
  2.53  resources, and agriculture finance 
  2.54  committee on recommendations to 
  2.55  internally manage the effects of 
  2.56  lowered attendance projections and 
  2.57  methods for improving attendance 
  2.58  forecasting. 
  2.59  Sec. 4.  NATURAL RESOURCES             4,356,000      3,843,000
  2.60  $30,000 in fiscal year 1999 is for a 
  3.1   grant under Minnesota Statutes, section 
  3.2   103F.161, to the Chisago Lake 
  3.3   improvement district for improvements 
  3.4   to the outlet project. 
  3.5   $500,000 in fiscal year 1999 is for 
  3.6   operations at Fort Snelling park and 
  3.7   for resource protection. 
  3.8   $476,000 in fiscal year 1998 is for 
  3.9   sealing inactive wells on state-owned 
  3.10  land.  The commissioner shall determine 
  3.11  project priorities as appropriate based 
  3.12  upon need.  This appropriation is 
  3.13  available until expended. 
  3.14  $250,000 in fiscal year 1998 is for 
  3.15  population and habitat objectives of 
  3.16  the nongame wildlife management program.
  3.17  $120,000 in fiscal year 1999 is to 
  3.18  accelerate white pine management on 
  3.19  state forest lands.  
  3.20  $750,000 in fiscal year 1998 is for 
  3.21  improvement of camper safety and 
  3.22  security in state forest campgrounds 
  3.23  and to make repairs to selected state 
  3.24  forest campgrounds. 
  3.25  $200,000 in fiscal year 1998 is for 
  3.26  operational costs related to wildlife 
  3.27  management at the area level. 
  3.28  $500,000 in fiscal year 1998 and 
  3.29  $250,000 in fiscal year 1999 are for 
  3.30  the interpretation, management, and 
  3.31  monitoring of scientific and natural 
  3.32  areas. 
  3.33  $340,000 in fiscal year 1999 is for 
  3.34  technical assistance and grants to 
  3.35  assist local government units and 
  3.36  organizations in the metropolitan area 
  3.37  to acquire and develop natural areas 
  3.38  and greenways. 
  3.39  $700,000 in fiscal year 1998 is for 
  3.40  state trail maintenance and amenities.  
  3.41  $250,000 of this amount is for 
  3.42  improvements including trail 
  3.43  connections, lighting, and landscaping 
  3.44  related to the trail bridge over 
  3.45  Highway 36 in North St. Paul. 
  3.46  $500,000 in fiscal year 1999 is for 
  3.47  further work to develop protected water 
  3.48  flow recommendations on Minnesota 
  3.49  streams and for support of river 
  3.50  restoration.  $300,000 of this amount 
  3.51  is for stream protection on Brown's 
  3.52  Creek in Washington county. 
  3.53  $53,000 in fiscal year 1999 is for 
  3.54  minerals cooperative environmental 
  3.55  research.  $26,500 is available only as 
  3.56  matched by $1 of nonstate money for 
  3.57  each $1 of state money.  This 
  3.58  appropriation is added to the 
  3.59  appropriation in Laws 1997, chapter 
  3.60  216, section 5, subdivision 2.  The 
  4.1   appropriation is available until 
  4.2   September 30, 1999. 
  4.3   $200,000 in fiscal year 1999 is for a 
  4.4   grant to the Minnesota forest resources 
  4.5   council for implementation of the 
  4.6   generic environmental impact statement 
  4.7   study on timber harvesting and forest 
  4.8   management in Minnesota.  This is a 
  4.9   one-time appropriation. 
  4.10  $75,000 in fiscal year 1998 is to 
  4.11  repair state forest land in Morrison, 
  4.12  Mille Lacs, Kanabec, and Crow Wing 
  4.13  counties. 
  4.14  $100,000 in fiscal year 1998 is to: 
  4.15  (1) conduct engineering and hydraulic 
  4.16  studies in conjunction with the 
  4.17  proposed development of an urban 
  4.18  whitewater trail along the Mississippi 
  4.19  river in the lower St. Anthony falls 
  4.20  area below the stone arch bridge in 
  4.21  Minneapolis; and 
  4.22  (2) examine the economic impact, market 
  4.23  use potential, public safety concerns, 
  4.24  environmental considerations, and land 
  4.25  and water use impacts of the proposed 
  4.26  Mississippi urban whitewater trail. 
  4.27  In fulfilling the duties under the 
  4.28  preceding paragraph, the commissioner 
  4.29  must coordinate and work with affected 
  4.30  local, state, and federal governments 
  4.31  and interested citizen groups, 
  4.32  including, but not limited to, the 
  4.33  National Park Service, the United 
  4.34  States Army Corps of Engineers, the 
  4.35  University of Minnesota, the Minnesota 
  4.36  historical society, the metropolitan 
  4.37  parks and open space commission, the 
  4.38  Minneapolis park board, and the 
  4.39  Mississippi Whitewater Park Development 
  4.40  Corporation.  The commissioner must 
  4.41  report to the senate and house 
  4.42  environmental finance committees by 
  4.43  March 1, 1999, on the findings from the 
  4.44  studies required in the preceding 
  4.45  paragraph. 
  4.46  $155,000 in fiscal year 1998 is for 
  4.47  development and maintenance of habitat 
  4.48  and facilities, and data management 
  4.49  system development at Swan Lake 
  4.50  wildlife management area.  
  4.51  $100,000 is for a grant to the township 
  4.52  of Linwood in Anoka county to construct 
  4.53  a surface water drainage system to 
  4.54  control water pollution.  This 
  4.55  appropriation is available until 
  4.56  expended. 
  4.57  $300,000 in fiscal year 1998 is for a 
  4.58  grant to the Sauk river watershed 
  4.59  district for renovation of the Sauk 
  4.60  river dam.  The grant must not exceed 
  4.61  50 percent of the cost of the project. 
  4.62  This appropriation is available until 
  5.1   expended. 
  5.2   $350,000 in fiscal year 1998 is to 
  5.3   serve as the state match to federal 
  5.4   money to remove surplus sediment along 
  5.5   the east bank of the Mississippi river 
  5.6   at Little Falls.  The commissioner must 
  5.7   coordinate and work with the United 
  5.8   States Army Corps of Engineers on this 
  5.9   project.  This appropriation is 
  5.10  available until expended. 
  5.11  $300,000 in fiscal year 1998 is for a 
  5.12  forestry information management system 
  5.13  to improve the timber sale program, 
  5.14  forest development model, and fire 
  5.15  management. 
  5.16  $50,000 in fiscal year 1998 is for 
  5.17  ecosystem-based management workshops 
  5.18  for teams of local officials, natural 
  5.19  resource managers, and citizens. 
  5.20  $200,000 in fiscal year 1999 is for 
  5.21  aquatic plant restoration.  This is a 
  5.22  one-time appropriation, available until 
  5.23  expended.  
  5.24  $300,000 in fiscal year 1999 is for 
  5.25  long-term monitoring of lake ecosystems.
  5.26  $200,000 in fiscal year 1999 is for an 
  5.27  enhanced lake classification system to 
  5.28  provide comprehensive lake 
  5.29  descriptions.  This is a one-time 
  5.30  appropriation, available until expended.
  5.31  $500,000 in fiscal year 1999 is to 
  5.32  identify lake watershed boundaries for 
  5.33  lakes greater than 100 acres in a 
  5.34  geographic information system format.  
  5.35  This is a one-time appropriation, 
  5.36  available until expended.  
  5.37  $300,000 in fiscal year 1999 is to 
  5.38  develop methodologies to assess the 
  5.39  cumulative effects of development on 
  5.40  lakes.  This is a one-time 
  5.41  appropriation, available until expended.
  5.42  $100,000 is for a grant to the Upper 
  5.43  Swede Hollow Association for 
  5.44  improvements in and around Swede Hollow 
  5.45  Park.  The appropriation shall be used 
  5.46  for plantings, tuckpointing, 
  5.47  improvements to railway trestles, trail 
  5.48  repair, reconstruction of the pond 
  5.49  outlet, and other trail improvements. 
  5.50  $50,000 in fiscal year 1998 and $50,000 
  5.51  in fiscal year 1999 are for an 
  5.52  agreement with the College of 
  5.53  Architecture and Landscape Architecture 
  5.54  to develop environmental brownfields 
  5.55  mitigation strategies. 
  5.56  $200,000 in fiscal year 1999 is for 
  5.57  publication of an aquatic plant 
  5.58  identification manual.  This is a 
  5.59  one-time appropriation, available until 
  5.60  expended. 
  6.1   The appropriation in Laws 1997, chapter 
  6.2   216, section 5, subdivision 4, for 
  6.3   grants to local community forest 
  6.4   ecosystem health programs is available 
  6.5   until June 30, 2000. 
  6.6   The appropriations in Laws 1996, 
  6.7   chapter 407, section 3, for the Iron 
  6.8   Range off-highway vehicle recreation 
  6.9   area are available until June 30, 2000. 
  6.10  Sec. 5.  BOARD OF WATER AND 
  6.11  SOIL RESOURCES                           400,000    2,560,000   
  6.12  $200,000 in fiscal year 1998 is for a 
  6.13  grant to the Faribault county soil and 
  6.14  water conservation district for the 
  6.15  quad-lakes restoration project in 
  6.16  Faribault and Blue Earth counties and 
  6.17  is available until expended. 
  6.18  $1,000,000 in fiscal year 1999 is for 
  6.19  shoreland and watershed best management 
  6.20  practices cost-share to protect 
  6.21  watershed and riparian areas. 
  6.22  $1,460,000 in fiscal year 1999 is for 
  6.23  grants to counties and local water 
  6.24  planning agencies for lake assessment 
  6.25  activities. 
  6.26  $200,000 in fiscal year 1998 is for a 
  6.27  grant to the University of Minnesota 
  6.28  extension service to improve existing 
  6.29  Minnesota extension guidance and guide 
  6.30  books.  This is a one-time 
  6.31  appropriation, available until expended.
  6.32  $100,000 in fiscal year 1999 is for a 
  6.33  pilot grant program to soil and water 
  6.34  conservation districts for cost-sharing 
  6.35  contracts with landowners to establish 
  6.36  and maintain plantings of trees, 
  6.37  shrubs, and grass strips that are 
  6.38  native species of a local ecotype for 
  6.39  the primary purpose of controlling snow 
  6.40  deposition for the benefit of public 
  6.41  transportation.  The board, in 
  6.42  consultation with the Minnesota 
  6.43  Association of Soil and Water 
  6.44  Conservation Districts, shall select at 
  6.45  least five districts for participation 
  6.46  in the pilot program.  Up to 20 percent 
  6.47  of the appropriation may be used for 
  6.48  the technical and administrative 
  6.49  expenses of soil and water conservation 
  6.50  districts to implement this paragraph.  
  6.51  The board shall enter into grant 
  6.52  agreements to accomplish the transfer 
  6.53  of funds to soil and water conservation 
  6.54  districts and to establish guidelines 
  6.55  to implement this paragraph.  
  6.56  Cost-sharing contracts between soil and 
  6.57  water conservation districts and 
  6.58  landowners may provide for annual 
  6.59  payments to landowners for 
  6.60  maintenance.  This appropriation is 
  6.61  available until spent. 
  6.62  Sec. 6.  AGRICULTURE                     160,000        630,000
  7.1   $60,000 in fiscal year 1998 and 
  7.2   $205,000 in fiscal year 1999 are for 
  7.3   expansion of efforts to prevent the 
  7.4   establishment and spread of gypsy moths 
  7.5   in Minnesota. 
  7.6   $75,000 in fiscal year 1999 is for 
  7.7   additional matching funds for the WIC 
  7.8   coupon program. 
  7.9   $50,000 in fiscal year 1999 is added to 
  7.10  the appropriation in Laws 1997, chapter 
  7.11  216, section 7, subdivision 4, for 
  7.12  beaver damage control grants. 
  7.13  $100,000 in fiscal year 1998 is added 
  7.14  to the appropriation in Laws 1997, 
  7.15  chapter 216, section 7, subdivision 4, 
  7.16  to accomplish reform of the federal 
  7.17  milk market order system and for legal 
  7.18  actions opposing the Northeast Dairy 
  7.19  Compact.  
  7.20  $250,000 in fiscal year 1999 is for a 
  7.21  grant to the Market Champ, Inc. board. 
  7.22  $50,000 in fiscal year 1999 is for the 
  7.23  Passing on the Farm Center established 
  7.24  in Minnesota Statutes, section 17.985.  
  7.25  This appropriation is in addition to 
  7.26  appropriations in Laws 1997, chapter 
  7.27  216, section 7, subdivision 4. 
  7.28  Sec. 7.  ATTORNEY GENERAL               -0-             100,000
  7.29  For purposes of the legal assistance to 
  7.30  counties in section 34.  This 
  7.31  appropriation is available for fiscal 
  7.32  year 1999. 
  7.33  Sec. 8.  UNIVERSITY
  7.34  OF MINNESOTA                            -0-             650,000 
  7.35  For alternative and sustainable hog 
  7.36  production facilities and programs, to 
  7.37  be located at the University of 
  7.38  Minnesota at Morris.  Of the 
  7.39  appropriation, $125,000 is for a grant 
  7.40  to the Minnesota Institute for 
  7.41  Sustainable Agriculture to extend 
  7.42  funding for the Alternative Swine 
  7.43  Production Systems Task Force and 
  7.44  coordinator.  Of the appropriation, 
  7.45  $137,500 is to establish a faculty 
  7.46  position in Agricultural and Community 
  7.47  Sociology, focusing on the 
  7.48  sustainability of agricultural systems 
  7.49  and rural communities, located at 
  7.50  Morris.  The position shall be defined 
  7.51  by the Alternative Swine Production 
  7.52  Systems Task Force.  This appropriation 
  7.53  is available until June 30, 1999. 
  7.54     Sec. 9.  Minnesota Statutes 1996, section 17.59, 
  7.55  subdivision 4, is amended to read: 
  7.56     Subd. 4.  [DEPOSIT AND USE OF CHECKOFF FEES.] Checkoff fees 
  7.57  collected pursuant to sections 17.51 to 17.69 shall be deposited 
  8.1   in a federally insured depository institution the commodities 
  8.2   research and promotion account in the special revenue fund of 
  8.3   the state treasury and, after appropriation by law, shall be 
  8.4   disbursed by the officers and employees approved by the council 
  8.5   for the necessary expenses incurred in the administration of 
  8.6   sections 17.51 to 17.69.  Checkoff fees collected shall be used 
  8.7   exclusively for the purpose collected and not to support or 
  8.8   oppose a political party or a candidate for nomination or 
  8.9   election to a public office. 
  8.10     Sec. 10.  [17.987] [MARKET CHAMP, INC; ACCESS TO QUALITY 
  8.11  GENETICS BY FAMILY FARMERS.] 
  8.12     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] Market Champ, 
  8.13  Inc. is established as a nonprofit public corporation under 
  8.14  chapter 317A and is subject to the provisions of that chapter. 
  8.15  The corporation is neither a state agency nor an entity within 
  8.16  the University of Minnesota.  The purpose of the corporation is 
  8.17  to transfer high quality swine genetic material from the 
  8.18  University of Minnesota to the family farmers of the state in 
  8.19  order to enhance the state's economic growth and the 
  8.20  competitiveness of family farmers.  Market Champ, Inc. shall 
  8.21  assist Minnesota swine producers in understanding genetic 
  8.22  technologies and developing improved animal genetic lines. 
  8.23     Subd. 2.  [DUTIES.] (a) Market Champ, Inc. shall: 
  8.24     (1) encourage family farmers to use the highest quality 
  8.25  swine genetics; 
  8.26     (2) facilitate the transfer of the latest swine genetic 
  8.27  research and technology information and materials from the 
  8.28  University of Minnesota and other sources to family farmers; 
  8.29     (3) assist family farmers to market the swine they produce; 
  8.30  and 
  8.31     (4) develop a system for tracking their products through 
  8.32  the processing, meat packing, and marketing system to determine 
  8.33  the market value of the genetic technology. 
  8.34     (b) Market Champ, Inc. shall: 
  8.35     (1) provide genetic testing, counseling, and assistance in 
  8.36  genetic decisions to identify new market developments and 
  9.1   capture value-added opportunities; 
  9.2      (2) provide centralized testing services with regional 
  9.3   technology transfer specialists; 
  9.4      (3) secure access to new genetic tests and services for all 
  9.5   Minnesota producers through licensing agreements; and 
  9.6      (4) assist family farmers who do not otherwise have access 
  9.7   to high quality genetic technologies. 
  9.8      Subd. 3.  [BOARD OF DIRECTORS.] (a) Market Champ, Inc. 
  9.9   shall be governed by a board of directors consisting of 21 
  9.10  voting members, appointed by the governor. 
  9.11     (b) The members of the board shall be: 
  9.12     (1) four representatives of small family farmers with under 
  9.13  250 sows; 
  9.14     (2) two representatives of purebred swine producers; 
  9.15     (3) two members of the Minnesota Pork Producers 
  9.16  Association; 
  9.17     (4) two appropriate representatives of the pork industry; 
  9.18     (5) two members of the meat packing industry; 
  9.19     (6) two members representing the University of Minnesota; 
  9.20     (7) two members representing Minnesota state colleges and 
  9.21  universities; 
  9.22     (8) the commissioner of agriculture; and 
  9.23     (9) the majority and minority leaders of the senate, the 
  9.24  speaker of the house of representatives, and the minority leader 
  9.25  of the house of representatives, or their designees. 
  9.26  Members listed in clauses (1) to (5) must be recommended by the 
  9.27  president of the University of Minnesota or a designee of the 
  9.28  president, in consultation with the chairs of the senate and 
  9.29  house of representatives committees with jurisdiction over 
  9.30  agricultural policy and finance issues. 
  9.31     (c) Meetings of the board are subject to section 471.705. 
  9.32     Subd. 4.  [BYLAWS.] Bylaws of Market Champ, Inc. must 
  9.33  provide for the qualification and removal of directors and for 
  9.34  filling vacancies on the board in a manner not inconsistent with 
  9.35  this section. 
  9.36     Subd. 5.  [ARTICLES OF INCORPORATION.] The articles of 
 10.1   incorporation of Market Champ, Inc. must be filed with the 
 10.2   secretary of state under chapter 317A and must be consistent 
 10.3   with this section. 
 10.4      Subd. 6.  [AUDIT.] Market Champ, Inc. shall contract with 
 10.5   the legislative auditor to perform audits and must report the 
 10.6   results to the legislature. 
 10.7      Subd. 7.  [REPORT.] The board of directors of Market Champ, 
 10.8   Inc. shall submit an annual report on the activities of Market 
 10.9   Champ, Inc. by January 15 of each year to the appropriations, 
 10.10  finance, and agriculture committees of the legislature and to 
 10.11  the governor.  The report must include a description of the 
 10.12  corporation's activities for the past year, a list of all 
 10.13  contracts entered into by the corporation, and a financial 
 10.14  report of revenues and expenditures of the corporation. 
 10.15     Subd. 8.  [EXPIRATION.] The board of directors of Market 
 10.16  Champ, Inc. expires on June 30, 2003. 
 10.17     Sec. 11.  [18G.01] [PURPOSE.] 
 10.18     The purpose of this chapter is to minimize the 
 10.19  environmental risks associated with improper handling, 
 10.20  management, or application of animal wastes generated by large 
 10.21  animal feedlots.  
 10.22     Sec. 12.  [18G.02] [TRAINING AND LICENSING FOR ANIMAL WASTE 
 10.23  TECHNICIANS.] 
 10.24     After March 1, 2000, a person who manages or applies animal 
 10.25  wastes for hire must hold a valid commercial animal waste 
 10.26  technician license. 
 10.27     The commissioner of agriculture, in cooperation with the 
 10.28  Minnesota extension service and appropriate educational 
 10.29  institutions, shall establish and implement a program for 
 10.30  training and licensing commercial animal waste technicians.  
 10.31     Sec. 13.  [18G.03] [COMMERCIAL ANIMAL WASTE TECHNICIAN.] 
 10.32     Subdivision 1.  [REQUIREMENT.] (a) After March 1, 2000, a 
 10.33  person may not manage or apply animal wastes for hire without a 
 10.34  valid commercial animal waste technician license.  
 10.35     (b) A commercial animal waste technician licensee must have 
 10.36  a valid license identification card when managing or applying 
 11.1   animal wastes for hire and must display it upon demand by an 
 11.2   authorized representative of the commissioner or a law 
 11.3   enforcement officer.  The commissioner shall prescribe the 
 11.4   information required on the license identification card.  
 11.5      Subd. 2.  [RESPONSIBILITY.] A person required to be 
 11.6   licensed under this section who performs animal waste management 
 11.7   or application for hire or who employs a licensed technician to 
 11.8   perform animal waste management or application for compensation 
 11.9   is responsible for proper management or application of the 
 11.10  animal wastes. 
 11.11     Subd. 3.  [LICENSE.] A commercial animal waste technician 
 11.12  license: 
 11.13     (1) is valid for three years and expires on December 31 of 
 11.14  the third year for which it is issued, unless suspended or 
 11.15  revoked before that date; 
 11.16     (2) is not transferable to another person; and 
 11.17     (3) must be prominently displayed to the public in the 
 11.18  commercial animal waste technician's place of business. 
 11.19     Subd. 4.  [APPLICATION.] A person must apply to the 
 11.20  commissioner for a commercial animal waste technician license on 
 11.21  forms and in the manner required by the commissioner and must 
 11.22  include the application fee.  The commissioner shall prescribe 
 11.23  and administer an examination or equivalent measure to determine 
 11.24  if the applicant is eligible for the commercial animal waste 
 11.25  technician license. 
 11.26     Subd. 5.  [RENEWAL APPLICATION.] A person must apply to the 
 11.27  commissioner of agriculture to renew a commercial animal waste 
 11.28  technician license and must include the application fee.  The 
 11.29  commissioner may renew a commercial animal waste technician 
 11.30  license, subject to reexamination, attendance at workshops 
 11.31  approved by the commissioner, or other requirements imposed by 
 11.32  the commissioner to provide the animal waste technician with 
 11.33  information regarding changing technology and to help ensure a 
 11.34  continuing level of competence and ability to manage and apply 
 11.35  animal wastes properly.  The applicant may renew a commercial 
 11.36  animal waste technician license within 12 months after 
 12.1   expiration of the license without having to meet initial testing 
 12.2   requirements.  The commissioner may require additional 
 12.3   demonstration of animal waste technician qualification if a 
 12.4   person has had a license suspended or revoked or has had a 
 12.5   history of violations of this section. 
 12.6      Subd. 6.  [FINANCIAL RESPONSIBILITY.] (a) A commercial 
 12.7   animal waste technician license may not be issued unless the 
 12.8   applicant furnishes proof of financial responsibility.  The 
 12.9   financial responsibility may be demonstrated by (1) proof of net 
 12.10  assets equal to or greater than $50,000, or (2) a performance 
 12.11  bond or insurance of the kind and in an amount determined by the 
 12.12  commissioner of agriculture. 
 12.13     (b) The bond or insurance must cover a period of time at 
 12.14  least equal to the term of the applicant's license.  The 
 12.15  commissioner shall immediately suspend the license of a person 
 12.16  who fails to maintain the required bond or insurance.  
 12.17     (c) An employee of a licensed person is not required to 
 12.18  maintain an insurance policy or bond during the time the 
 12.19  employer is maintaining the required insurance or bond. 
 12.20     (d) Applications for reinstatement of a license suspended 
 12.21  under paragraph (b) must be accompanied by proof of satisfaction 
 12.22  of judgments previously rendered.  
 12.23     Subd. 7.  [APPLICATION FEE.] (a) A person initially 
 12.24  applying for or renewing a commercial animal waste technician 
 12.25  license must pay a nonrefundable application fee of $50.  
 12.26     (b) Fees collected under this subdivision must be deposited 
 12.27  in the animal waste liability account.  
 12.28     Sec. 14.  [18G.04] [NONCOMMERCIAL ANIMAL WASTE TECHNICIAN; 
 12.29  PLAN FOR LICENSING.] 
 12.30     The commissioner of agriculture, in consultation with the 
 12.31  commissioner of the pollution control agency, the Minnesota 
 12.32  extension service, and statewide farm organizations including 
 12.33  the Minnesota Farmers Union and the Farm Bureau Federation, 
 12.34  shall design a program for the training and licensure of 
 12.35  noncommercial animal waste technicians.  Not later than March 1, 
 12.36  1999, the commissioner shall report to the legislature on 
 13.1   recommendations for implementing the program for training and 
 13.2   licensing noncommercial animal waste technicians. The 
 13.3   recommendations must include at least the following: 
 13.4      (1) persons and activities that should be exempt from 
 13.5   licensure; 
 13.6      (2) dates by which persons should be required to obtain the 
 13.7   noncommercial animal waste technician license; 
 13.8      (3) content of the noncommercial animal waste technician 
 13.9   training curriculum; and 
 13.10     (4) procedures and timelines for implementing noncommercial 
 13.11  animal waste technician training programs. 
 13.12     Sec. 15.  Minnesota Statutes 1996, section 35.82, 
 13.13  subdivision 2, is amended to read: 
 13.14     Subd. 2.  [DISPOSITION OF CARCASSES.] (a) Except as 
 13.15  provided in subdivision 1b and paragraph (d), every person 
 13.16  owning or controlling any domestic animal that has died or been 
 13.17  killed otherwise than by being slaughtered for human or animal 
 13.18  consumption, shall as soon as reasonably possible bury the 
 13.19  carcass at least three feet deep in the ground or thoroughly 
 13.20  burn it or dispose of it by another method approved by the board 
 13.21  as being effective for the protection of public health and the 
 13.22  control of livestock diseases.  The board, through its executive 
 13.23  secretary, may issue permits to owners of rendering plants 
 13.24  located in Minnesota which are operated and conducted as 
 13.25  required by law, to transport carcasses of domestic animals and 
 13.26  fowl that have died, or have been killed otherwise than by being 
 13.27  slaughtered for human or animal consumption, over the public 
 13.28  highways to their plants for rendering purposes in accordance 
 13.29  with the rules adopted by the board relative to transportation, 
 13.30  rendering, and other provisions the board considers necessary to 
 13.31  prevent the spread of disease.  The board may issue permits to 
 13.32  owners of rendering plants located in an adjacent state with 
 13.33  which a reciprocal agreement is in effect under subdivision 3. 
 13.34     (b) Carcasses collected by rendering plants under permit 
 13.35  may be used for pet food or mink food if the owner or operator 
 13.36  meets the requirements of subdivision 1b. 
 14.1      (c) An authorized employee or agent of the board may enter 
 14.2   private or public property and inspect the carcass of any 
 14.3   domestic animal that has died or has been killed other than by 
 14.4   being slaughtered for human or animal consumption.  Failure to 
 14.5   dispose of the carcass of any domestic animal within the period 
 14.6   specified by this subdivision is a public nuisance.  The board 
 14.7   may petition the district court of the county in which a carcass 
 14.8   is located for a writ requiring the abatement of the public 
 14.9   nuisance.  A civil action commenced under this paragraph does 
 14.10  not preclude a criminal prosecution under this section.  No 
 14.11  person may sell, offer to sell, give away, or convey along a 
 14.12  public road or on land the person does not own, the carcass of a 
 14.13  domestic animal when the animal died or was killed other than by 
 14.14  being slaughtered for human or animal consumption unless it is 
 14.15  done with a special permit pursuant to this section.  The 
 14.16  carcass or parts of a domestic animal that has died or has been 
 14.17  killed other than by being slaughtered for human or animal 
 14.18  consumption may be transported along a public road for a medical 
 14.19  or scientific purpose if the carcass is enclosed in a leakproof 
 14.20  container to prevent spillage or the dripping of liquid waste.  
 14.21  The board may adopt rules relative to the transportation of the 
 14.22  carcass of any domestic animal for a medical or scientific 
 14.23  purpose.  A carcass on a public thoroughfare may be transported 
 14.24  for burial or other disposition in accordance with this section. 
 14.25     No person who owns or controls diseased animals shall 
 14.26  negligently or willfully permit them to escape from that control 
 14.27  or to run at large. 
 14.28     (d) A sheep producer may compost sheep carcasses owned by 
 14.29  the producer on the producer's land without a permit and is 
 14.30  exempt from compost facility specifications contained in rules 
 14.31  of the board. 
 14.32     (e) The board shall develop best management practices for 
 14.33  dead animal disposal and the pollution control agency feedlot 
 14.34  program shall distribute them to livestock producers in the 
 14.35  state.  
 14.36     (f) The board shall not issue to any swine producer a 
 15.1   permit for the homogenization of piglet carcasses.  No swine 
 15.2   producer may dispose of piglet carcasses by the process of 
 15.3   homogenization. 
 15.4      Sec. 16.  Minnesota Statutes 1996, section 41A.09, 
 15.5   subdivision 1a, is amended to read: 
 15.6      Subd. 1a.  [ETHANOL PRODUCTION GOAL.] It is a goal of the 
 15.7   state that ethanol production plants in the state attain a total 
 15.8   annual production level of 220,000,000 244,000,000 gallons.  
 15.9      Sec. 17.  Minnesota Statutes 1997 Supplement, section 
 15.10  41A.09, subdivision 3a, is amended to read: 
 15.11     Subd. 3a.  [PAYMENTS.] (a) The commissioner of agriculture 
 15.12  shall make cash payments to producers of ethanol, anhydrous 
 15.13  alcohol, and wet alcohol located in the state.  These payments 
 15.14  shall apply only to ethanol, anhydrous alcohol, and wet alcohol 
 15.15  fermented in the state and produced at plants that have begun 
 15.16  production by June 30, 2000.  For the purpose of this 
 15.17  subdivision, an entity that holds a controlling interest in more 
 15.18  than one ethanol plant is considered a single producer.  The 
 15.19  amount of the payment for each producer's annual production is: 
 15.20     (1) except as provided in paragraph (b), for each gallon of 
 15.21  ethanol or anhydrous alcohol produced on or before June 30, 
 15.22  2000, or ten years after the start of production, whichever is 
 15.23  later, 20 cents per gallon; and 
 15.24     (2) for each gallon produced of wet alcohol on or before 
 15.25  June 30, 2000, or ten years after the start of production, 
 15.26  whichever is later, a payment in cents per gallon calculated by 
 15.27  the formula "alcohol purity in percent divided by five," and 
 15.28  rounded to the nearest cent per gallon, but not less than 11 
 15.29  cents per gallon. 
 15.30     The producer payments for anhydrous alcohol and wet alcohol 
 15.31  under this section may be paid to either the original producer 
 15.32  of anhydrous alcohol or wet alcohol or the secondary processor, 
 15.33  at the option of the original producer, but not to both. 
 15.34     (b) If the level of production at an ethanol plant 
 15.35  increases due to an increase in the production capacity of the 
 15.36  plant and the increased production begins by June 30, 2000, the 
 16.1   payment under paragraph (a), clause (1), applies to the 
 16.2   additional increment of production until ten years after the 
 16.3   increased production began.  Once a plant's production capacity 
 16.4   reaches 15,000,000 gallons per year, no additional increment 
 16.5   will qualify for the payment. 
 16.6      (c) The commissioner shall make payments to producers of 
 16.7   ethanol or wet alcohol in the amount of 1.5 cents for each 
 16.8   kilowatt hour of electricity generated using closed-loop biomass 
 16.9   in a cogeneration facility at an ethanol plant located in the 
 16.10  state.  Payments under this paragraph shall be made only for 
 16.11  electricity generated at cogeneration facilities that begin 
 16.12  operation by June 30, 2000.  The payments apply to electricity 
 16.13  generated on or before the date ten years after the producer 
 16.14  first qualifies for payment under this paragraph.  Total 
 16.15  payments under this paragraph in any fiscal year may not exceed 
 16.16  $750,000.  For the purposes of this paragraph: 
 16.17     (1) "closed-loop biomass" means any organic material from a 
 16.18  plant that is planted for the purpose of being used to generate 
 16.19  electricity or for multiple purposes that include being used to 
 16.20  generate electricity; and 
 16.21     (2) "cogeneration" means the combined generation of: 
 16.22     (i) electrical or mechanical power; and 
 16.23     (ii) steam or forms of useful energy, such as heat, that 
 16.24  are used for industrial, commercial, heating, or cooling 
 16.25  purposes. 
 16.26     (d) The total payments under paragraphs (a) and (b) to all 
 16.27  producers may not exceed $34,000,000 in a fiscal year.  Total 
 16.28  payments under paragraphs (a) and (b) to a producer in a fiscal 
 16.29  year may not exceed $3,000,000. 
 16.30     (e) By the last day of October, January, April, and July, 
 16.31  each producer shall file a claim for payment for ethanol, 
 16.32  anhydrous alcohol, and wet alcohol production during the 
 16.33  preceding three calendar months.  A producer with more than one 
 16.34  plant shall file a separate claim for each plant.  A producer 
 16.35  shall file a separate claim for the original production capacity 
 16.36  of each plant and for each additional increment of production 
 17.1   that qualifies under paragraph (b).  A producer that files a 
 17.2   claim under this subdivision shall include a statement of the 
 17.3   producer's total ethanol, anhydrous alcohol, and wet alcohol 
 17.4   production in Minnesota during the quarter covered by the claim, 
 17.5   including anhydrous alcohol and wet alcohol produced or received 
 17.6   from an outside source.  A producer shall file a separate claim 
 17.7   for any amount claimed under paragraph (c).  For each claim and 
 17.8   statement of total ethanol, anhydrous alcohol, and wet alcohol 
 17.9   production filed under this subdivision, the volume of ethanol, 
 17.10  anhydrous alcohol, and wet alcohol production or amounts of 
 17.11  electricity generated using closed-loop biomass must be examined 
 17.12  by an independent certified public accountant in accordance with 
 17.13  standards established by the American Institute of Certified 
 17.14  Public Accountants. 
 17.15     (f) Payments shall be made November 15, February 15, May 
 17.16  15, and August 15.  A separate payment shall be made for each 
 17.17  claim filed.  The total quarterly payment to a producer under 
 17.18  this paragraph, excluding amounts paid under paragraph (c), may 
 17.19  not exceed $750,000.  If the total amount for which all 
 17.20  producers are eligible in a quarter under paragraphs (a) and (b) 
 17.21  exceeds $8,500,000, the commissioner shall make payments in the 
 17.22  order in which the portion of production capacity covered by 
 17.23  each claim went into production.  If the total amount of ethanol 
 17.24  or wet alcohol production reported for a quarter under paragraph 
 17.25  (e) equals or exceeds 55,000,000 gallons: 
 17.26     (1) payments under this subdivision do not apply to the 
 17.27  amount produced in excess of 55,000,000 gallons; 
 17.28     (2) the commissioner shall make payments to producers in 
 17.29  the order in which the portion of production capacity covered by 
 17.30  each claim began production; and 
 17.31     (3) only those producers that receive payments for the 
 17.32  quarter, or received payments under paragraph (a) or (b) in an 
 17.33  earlier quarter, will be eligible for future ethanol or wet 
 17.34  alcohol production payments under this subdivision to each 
 17.35  producer by prorating the amount available for the quarter 
 17.36  against the total production in the quarter for which all 
 18.1   producers are eligible. 
 18.2      (g) If the total amount for which all producers are 
 18.3   eligible in a quarter under paragraph (c) exceeds the amount 
 18.4   available for payments, the commissioner shall make payments in 
 18.5   the order in which the plants covered by the claims began 
 18.6   generating electricity using closed-loop biomass. 
 18.7      (h) After July 1, 1997, new production capacity is only 
 18.8   eligible for payment under this subdivision if the commissioner 
 18.9   receives: 
 18.10     (1) an application for approval of the new production 
 18.11  capacity; 
 18.12     (2) an appropriate letter of long-term financial commitment 
 18.13  for construction of the new capacity; and 
 18.14     (3) copies of all necessary permits for construction of the 
 18.15  new capacity. 
 18.16     The commissioner may approve the additional capacity based 
 18.17  on the order in which the applications are received.  Except as 
 18.18  provided in paragraph (i), the commissioner shall not 
 18.19  approve projected production capacity in excess of the 
 18.20  limitations in paragraph (f) 61,000,000 gallons per quarter.  
 18.21  Existing plants are not eligible for new capacity beyond planned 
 18.22  expansions reported to the commissioner by February 1997. 
 18.23     (i) Notwithstanding the limits imposed in paragraph (h), 
 18.24  the commissioner shall approve additional production capacity 
 18.25  sufficient to allow producers located in Albert Lea, Bingham 
 18.26  Lake, Luverne, and Preston eligibility for producer payments to 
 18.27  the same limits as other producers under paragraphs (a) and (b). 
 18.28     Sec. 18.  Minnesota Statutes 1996, section 84.871, is 
 18.29  amended to read: 
 18.30     84.871 [MUFFLERS EQUIPMENT REQUIREMENTS.] 
 18.31     Subdivision 1.  [MUFFLERS.] Except as provided in this 
 18.32  section, every snowmobile shall be equipped at all times with a 
 18.33  muffler in good working order which blends the exhaust noise 
 18.34  into the overall snowmobile noise and is in constant operation 
 18.35  to prevent excessive or unusual noise.  The exhaust system shall 
 18.36  not emit or produce a sharp popping or crackling sound.  This 
 19.1   section does not apply to organized races or similar competitive 
 19.2   events held on (1) private lands, with the permission of the 
 19.3   owner, lessee, or custodian of the land; (2) public lands and 
 19.4   water under the jurisdiction of the commissioner of natural 
 19.5   resources, with the commissioner's permission; or (3) other 
 19.6   public lands, with the consent of the public agency owning the 
 19.7   land.  No person shall have for sale, sell, or offer for sale on 
 19.8   any new snowmobile any muffler that fails to comply with the 
 19.9   specifications required by the rules of the commissioner after 
 19.10  the effective date of the rules.  
 19.11     Subd. 2.  [METAL TRACTION DEVICES ON SNOWMOBILE TRACKS.] No 
 19.12  snowmobile with a track equipped with metal traction devices may 
 19.13  be operated on public lands, roads, or trails, or road or trail 
 19.14  rights-of-way, except that the commissioner of natural resources 
 19.15  may permit the use of new metal traction devices on snowmobile 
 19.16  trails after study and testing on paved surfaces.  
 19.17     Sec. 19.  Minnesota Statutes 1996, section 84.943, 
 19.18  subdivision 3, is amended to read: 
 19.19     Subd. 3.  [APPROPRIATIONS MUST BE MATCHED BY PRIVATE 
 19.20  FUNDS.] Appropriations transferred to the critical habitat 
 19.21  private sector matching account and money credited to the 
 19.22  account under section 168.1296, subdivision 5, may be expended 
 19.23  only to the extent that they are matched equally with 
 19.24  contributions to the account from private sources, including 
 19.25  money credited to the account under section 168.1296, 
 19.26  subdivision 5, or by funds contributed to the nongame wildlife 
 19.27  management account.  The private contributions may be made in 
 19.28  cash or in contributions of land or interests in land that are 
 19.29  designated by the commissioner of natural resources as program 
 19.30  acquisitions.  Appropriations transferred to the account that 
 19.31  are not matched within three years from the date of the 
 19.32  appropriation shall cancel to the source of the appropriation.  
 19.33  For the purposes of this section, the private contributions of 
 19.34  land or interests in land shall be valued in accordance with 
 19.35  their appraised value. 
 19.36     Sec. 20.  [85.0156] [MISSISSIPPI WHITEWATER TRAIL.] 
 20.1      Subdivision 1.  [CREATION.] An urban whitewater trail is 
 20.2   created along the Mississippi river in the lower St. Anthony 
 20.3   falls area below the stone arch bridge in Minneapolis.  The 
 20.4   trail must be primarily developed for whitewater rafters, 
 20.5   canoers, and kayakers. 
 20.6      Subd. 2.  [COMMISSIONER'S DUTIES.] (a) The commissioner of 
 20.7   natural resources must coordinate the creation of the whitewater 
 20.8   trail by placing designation signs near and along the river and 
 20.9   must publicize the designation. 
 20.10     (b) In designating the Mississippi whitewater trail, the 
 20.11  commissioner must work with other federal, state, and local 
 20.12  agencies and private businesses and organizations interested in 
 20.13  the trail. 
 20.14     Subd. 3.  [GIFTS; DONATIONS.] The commissioner of natural 
 20.15  resources is authorized to accept, on behalf of a nonprofit 
 20.16  corporation, donations of land or easements in land for the 
 20.17  whitewater trail and may seek and accept money for the trail 
 20.18  from other public and private sources. 
 20.19     Sec. 21.  Minnesota Statutes 1996, section 86B.313, is 
 20.20  amended by adding a subdivision to read: 
 20.21     Subd. 2a.  [RULES DECAL.] A personal watercraft may not be 
 20.22  operated without a personal watercraft rules decal, issued by 
 20.23  the commissioner, attached to the personal watercraft so as to 
 20.24  be in full view and readable by the operator while underway. 
 20.25     Sec. 22.  Minnesota Statutes 1996, section 86B.313, 
 20.26  subdivision 3, is amended to read: 
 20.27     Subd. 3.  [OPERATOR'S PERMIT PERSONAL WATERCRAFT 
 20.28  CERTIFICATE.] (a) Except as provided in paragraphs (c) and (d), 
 20.29  all operators of a personal watercraft, whether rented, owned, 
 20.30  or borrowed for use, must obtain and have in possession a 
 20.31  personal watercraft certificate.  The commissioner shall issue a 
 20.32  personal watercraft certificate to an applicant who is at least 
 20.33  16 years of age who: 
 20.34     (1) completes a personal watercraft education course 
 20.35  approved by the commissioner; 
 20.36     (2) passes a test on personal watercraft as prescribed by 
 21.1   the commissioner; and 
 21.2      (3) pays the required fee. 
 21.3      (b) The certificates must be issued by the commissioner by 
 21.4   May 1, 2000, to operators between the ages of 16 and 25 years, 
 21.5   and by May 1, 2001, to operators over the age of 25 years. 
 21.6      (c) The commissioner may recognize personal watercraft 
 21.7   certificates or their equivalent issued by other states or 
 21.8   countries. 
 21.9      (d) Except in the case of an emergency, a person 13 years 
 21.10  of age or over but less than 18 years of age may not operate a 
 21.11  personal watercraft, regardless of horsepower, without 
 21.12  possessing a valid watercraft operator's permit personal 
 21.13  watercraft certificate as required by this section 86B.305, 
 21.14  unless there is a person 18 21 years of age or older on board 
 21.15  the craft who possesses a personal watercraft certificate and to 
 21.16  whom the watercraft's kill switch is attached.  In addition to 
 21.17  the permit requirement, a person 13 years of age operating a 
 21.18  personal watercraft must maintain unaided observation by a 
 21.19  person 18 years of age or older.  
 21.20     (e) It is unlawful for the owner of a personal watercraft 
 21.21  to permit the personal watercraft to be operated contrary to 
 21.22  this subdivision. 
 21.23     (f) The fee for acquiring a personal watercraft certificate 
 21.24  is $10 and the fee for a duplicate certificate is $5.  The fee 
 21.25  must be deposited in a separate account in the natural resources 
 21.26  fund and used for the purposes of training and testing personal 
 21.27  watercraft operators. 
 21.28     Sec. 23.  Minnesota Statutes 1996, section 86B.313, is 
 21.29  amended by adding a subdivision to read: 
 21.30     Subd. 5.  [CITIZEN COMPLAINTS; NUISANCE.] (a) An owner of 
 21.31  lakeshore in this state, or a renter or guest of a lakeshore 
 21.32  owner, may register a complaint for appropriate action with a 
 21.33  local law enforcement officer if any personal watercraft is 
 21.34  operated in one specific area of a lake for more than 30 
 21.35  consecutive minutes. 
 21.36     (b) Operation of a personal watercraft in one specific area 
 22.1   of a lake for more than 30 consecutive minutes is a public 
 22.2   nuisance under section 609.74. 
 22.3      Sec. 24.  Minnesota Statutes 1996, section 86B.415, is 
 22.4   amended by adding a subdivision to read: 
 22.5      Subd. 7a.  [PERSONAL WATERCRAFT SURCHARGE.] A $30 surcharge 
 22.6   for every three-year period is placed on each personal 
 22.7   watercraft license issued under this section.  The fee shall be 
 22.8   deposited in the state treasury and credited to the personal 
 22.9   watercraft account created under section 86B.803.  
 22.10     Sec. 25.  [86B.803] [PERSONAL WATERCRAFT ACCOUNT.] 
 22.11     Subdivision 1.  [CREATION.] There is created in the state 
 22.12  treasury an account known as the personal watercraft account in 
 22.13  the natural resources fund. 
 22.14     Subd. 2.  [PURPOSE.] The money deposited in the account and 
 22.15  interest earned on the money may be expended only as 
 22.16  appropriated by law for enhancing state law enforcement 
 22.17  capabilities related to personal watercraft by hiring 
 22.18  recreational specialists to enforce natural resources laws 
 22.19  statewide.  At least half of the recreational specialists hired 
 22.20  must be from a protected class. 
 22.21     Sec. 26.  Minnesota Statutes 1996, section 89A.03, 
 22.22  subdivision 1, is amended to read: 
 22.23     Subdivision 1.  [MEMBERSHIP.] The Minnesota forest 
 22.24  resources council has 13 14 members appointed by the governor.  
 22.25  Council membership must include one representative from each of 
 22.26  the following: 
 22.27     (1) an organization representing environmental interests 
 22.28  within the state; 
 22.29     (2) an organization representing the interests of 
 22.30  management of game species; 
 22.31     (3) a conservation organization; 
 22.32     (4) an association representing forest products industry 
 22.33  within the state; 
 22.34     (5) a commercial logging contractor active in a forest 
 22.35  product association; 
 22.36     (6) a statewide association representing the resort and 
 23.1   tourism industry; 
 23.2      (7) a faculty or researcher of a Minnesota research or 
 23.3   higher educational institution; 
 23.4      (8) an owner of nonindustrial, private forest land of 40 
 23.5   acres or more; 
 23.6      (9) an agricultural woodlot owner; 
 23.7      (10) the department; 
 23.8      (11) a county land commissioner who is a member of the 
 23.9   Minnesota association of county land commissioners; 
 23.10     (12) the United States Forest Service unit with land 
 23.11  management responsibility in Minnesota; and 
 23.12     (13) a labor organization with membership having an 
 23.13  interest in forest resource issues; and 
 23.14     (14) a representative recommended by the Indian affairs 
 23.15  council. 
 23.16     Sec. 27.  Minnesota Statutes 1996, section 90.193, is 
 23.17  amended to read: 
 23.18     90.193 [EXTENSION OF TIMBER PERMITS.] 
 23.19     The commissioner may, in the case of an exceptional 
 23.20  circumstance beyond the control of the timber permit holder 
 23.21  which makes it unreasonable, impractical, and not feasible to 
 23.22  complete cutting and removal under the permit within the time 
 23.23  allowed, grant an extension of one year.  A request for the 
 23.24  extension must be received by the commissioner before the permit 
 23.25  expires.  The request must state the reason the extension is 
 23.26  necessary and be signed by the permit holder.  The value of the 
 23.27  timber remaining to be cut will be recalculated using current 
 23.28  stumpage rates.  Any timber cut during the period of extension 
 23.29  or remaining uncut at the expiration of the extension shall be 
 23.30  billed for at the stumpage rates determined at the time of 
 23.31  extension provided that in no event shall stumpage rates be less 
 23.32  than those in effect at the time of the original sale.  An 
 23.33  interest rate of eight percent will may be charged for the 
 23.34  period of extension.  
 23.35     Sec. 28.  Minnesota Statutes 1996, section 93.002, 
 23.36  subdivision 1, is amended to read: 
 24.1      Subdivision 1.  [ESTABLISHMENT.] The mineral coordinating 
 24.2   committee is established to plan for diversified mineral 
 24.3   development.  The mineral coordinating committee consists of the 
 24.4   director of the minerals division of the department of natural 
 24.5   resources, the deputy commissioner of the Minnesota pollution 
 24.6   control agency, the director of United Steelworkers of America, 
 24.7   district 11, or the director's designee, the director of the 
 24.8   Minnesota geological survey, the dean of the University of 
 24.9   Minnesota institute of technology, and the director of the 
 24.10  natural resources research institute, and three individuals 
 24.11  appointed by the governor for a four-year term, one each 
 24.12  representing the iron ore and taconite, the nonferrous metallic 
 24.13  minerals, and the industrial minerals industries within the 
 24.14  state.  The director of the minerals division of the department 
 24.15  of natural resources shall serve as chair.  A member of the 
 24.16  committee may designate another person of the member's 
 24.17  organization to act in the member's place.  The commissioner of 
 24.18  natural resources shall provide staff and administrative 
 24.19  services necessary for the committee's activities. 
 24.20     The mineral coordinating committee is encouraged to solicit 
 24.21  and receive advice from representatives of the United States 
 24.22  Bureau of Mines, the United States Geological Survey, and the 
 24.23  United States Environmental Protection Agency.  Notwithstanding 
 24.24  Minnesota Statutes 1997 Supplement, section 15.059, the minerals 
 24.25  coordinating committee expires on June 30, 2008. 
 24.26     Sec. 29.  Minnesota Statutes 1996, section 103F.155, 
 24.27  subdivision 2, is amended to read: 
 24.28     Subd. 2.  [COMMISSIONER'S REVIEW.] (a) The commissioner 
 24.29  shall review the plan and consult with the state office of civil 
 24.30  defense and other appropriate state and federal agencies.  
 24.31  Following the review, the commissioner shall accept, require 
 24.32  modification, or reject the plan.  
 24.33     (b) If required modifications are not made, or if the plan 
 24.34  is rejected, the commissioner shall order the removal of the 
 24.35  emergency protection measures and shall not provide grant money 
 24.36  under section 103F.161 until the plan is approved or the 
 25.1   required modifications are made. 
 25.2      Sec. 30.  Minnesota Statutes 1996, section 103F.161, 
 25.3   subdivision 2, is amended to read: 
 25.4      Subd. 2.  [ACTION ON GRANT APPLICATIONS.] (a) A local 
 25.5   government may apply to the commissioner for a grant on forms 
 25.6   provided by the commissioner.  The commissioner shall confer 
 25.7   with the local government requesting the grant and may make a 
 25.8   grant up to $75,000 $100,000 based on the following 
 25.9   considerations: 
 25.10     (1) the extent and effectiveness of mitigation measures 
 25.11  already implemented by the local government requesting the 
 25.12  grant; 
 25.13     (2) the feasibility, practicality, and effectiveness of the 
 25.14  proposed mitigation measures and the associated nonflood related 
 25.15  benefits and detriments; 
 25.16     (3) the level of grant assistance that should be provided 
 25.17  to the local government, based on available facts regarding the 
 25.18  nature, extent, and severity of flood problems; 
 25.19     (4) the frequency of occurrence of severe flooding that has 
 25.20  resulted in declaration of the area as a flood disaster area by 
 25.21  the President of the United States; 
 25.22     (5) the economic, social, and environmental benefits and 
 25.23  detriments of the proposed mitigation measures; 
 25.24     (6) whether the floodplain management ordinance or 
 25.25  regulation adopted by the local government meets the minimum 
 25.26  standards established by the commissioner, the degree of 
 25.27  enforcement of the ordinance or regulation, and whether the 
 25.28  local government is complying with the ordinance or regulation; 
 25.29     (7) the degree to which the grant request is consistent 
 25.30  with local water plans developed under chapters 103B and 103D; 
 25.31     (8) the financial capability of the local government to 
 25.32  solve its flood hazard problems without financial assistance; 
 25.33  and 
 25.34     (9) the estimated cost and method of financing of the 
 25.35  proposed mitigation measures based on local money and federal 
 25.36  and state financial assistance. 
 26.1      (b) If the amount of the grant requested is $75,000 
 26.2   $200,000 or more, the commissioner shall determine, under the 
 26.3   considerations in paragraph (a), whether any part of the grant 
 26.4   should be awarded.  The commissioner must submit an 
 26.5   appropriation request to the governor and the legislature for 
 26.6   funding consideration before each odd-numbered year, consisting 
 26.7   of requests or parts of grant requests of $75,000 $100,000 or 
 26.8   more.  The commissioner must prioritize the grant requests, 
 26.9   under the considerations in paragraph (a), beginning with the 
 26.10  projects the commissioner determines most deserving of financing.
 26.11     (c) A grant may not exceed one-half the total cost of the 
 26.12  proposed mitigation measures. 
 26.13     (d) After July 1, 1991, grants made under this section may 
 26.14  be made to local governments whose grant requests are part of, 
 26.15  or responsive to, a comprehensive local water plan prepared 
 26.16  under chapter 103B or 103D. 
 26.17     Sec. 31.  Minnesota Statutes 1996, section 103G.271, 
 26.18  subdivision 6, is amended to read: 
 26.19     Subd. 6.  [WATER USE PERMIT PROCESSING FEE.] (a) Except as 
 26.20  described in paragraphs (b) to (f), a water use permit 
 26.21  processing fee must be prescribed by the commissioner in 
 26.22  accordance with the following schedule of fees for each water 
 26.23  use permit in force at any time during the year: 
 26.24     (1) 0.05 cents per 1,000 gallons for the first 50,000,000 
 26.25  gallons per year; 
 26.26     (2) 0.10 cents per 1,000 gallons for amounts greater than 
 26.27  50,000,000 gallons but less than 100,000,000 gallons per year; 
 26.28     (3) 0.15 cents per 1,000 gallons for amounts greater than 
 26.29  100,000,000 gallons but less than 150,000,000 gallons per year; 
 26.30  and 
 26.31     (4) 0.20 cents per 1,000 gallons for amounts greater than 
 26.32  150,000,000 gallons but less than 200,000,000 gallons per year; 
 26.33     (5) 0.25 cents per 1,000 gallons for amounts greater than 
 26.34  200,000,000 gallons but less than 250,000,000 gallons per year; 
 26.35     (6) 0.30 cents per 1,000 gallons for amounts greater than 
 26.36  250,000,000 gallons but less than 300,000,000 gallons per year; 
 27.1      (7) 0.35 cents per 1,000 gallons for amounts greater than 
 27.2   300,000,000 gallons but less than 350,000,000 gallons per year; 
 27.3      (8) 0.40 cents per 1,000 gallons for amounts greater than 
 27.4   350,000,000 gallons but less than 400,000,000 gallons per year; 
 27.5   and 
 27.6      (9) 0.45 cents per 1,000 gallons for amounts greater than 
 27.7   400,000,000 gallons per year.  
 27.8      (b) For once-through cooling systems, a water use 
 27.9   processing fee must be prescribed by the commissioner in 
 27.10  accordance with the following schedule of fees for each water 
 27.11  use permit in force at any time during the year: 
 27.12     (1) for nonprofit corporations and school districts: 
 27.13     (i) 5.0 cents per 1,000 gallons until December 31, 1991; 
 27.14     (ii) 10.0 cents per 1,000 gallons from January 1, 1992, 
 27.15  until December 31, 1996; and 
 27.16     (iii) 15.0 cents per 1,000 gallons after January 1, 1997; 
 27.17  and 
 27.18     (2) for all other users, 20 cents per 1,000 gallons. 
 27.19     (c) The fee is payable based on the amount of water 
 27.20  appropriated during the year and, except as provided in 
 27.21  paragraph (f), the minimum fee is $50.  
 27.22     (d) For water use processing fees other than once-through 
 27.23  cooling systems:  
 27.24     (1) the fee for a city of the first class may not exceed 
 27.25  $175,000 per year; 
 27.26     (2) the fee for other entities for any permitted use may 
 27.27  not exceed: 
 27.28     (i) $35,000 per year for an entity holding three or fewer 
 27.29  permits; 
 27.30     (ii) $50,000 per year for an entity holding four or five 
 27.31  permits; 
 27.32     (iii) $175,000 per year for an entity holding more than 
 27.33  five permits; 
 27.34     (3) the fee for agricultural irrigation may not exceed $750 
 27.35  per year; and 
 27.36     (4) the fee for a municipality that furnishes electric 
 28.1   service and cogenerates steam for home heating may not exceed 
 28.2   $10,000 for its permit for water use related to the cogeneration 
 28.3   of electricity and steam; and 
 28.4      (5) no fee is required for a project involving the 
 28.5   appropriation of surface water to prevent flood damage or to 
 28.6   remove flood waters during a period of flooding, as determined 
 28.7   by the commissioner.  
 28.8      (e) Failure to pay the fee is sufficient cause for revoking 
 28.9   a permit.  A penalty of two percent per month calculated from 
 28.10  the original due date must be imposed on the unpaid balance of 
 28.11  fees remaining 30 days after the sending of a second notice of 
 28.12  fees due.  A fee may not be imposed on an agency, as defined in 
 28.13  section 16B.01, subdivision 2, or federal governmental agency 
 28.14  holding a water appropriation permit. 
 28.15     (f) The minimum water use processing fee for a permit 
 28.16  issued for irrigation of agricultural land is $10 for years in 
 28.17  which: 
 28.18     (1) there is no appropriation of water under the permit; or 
 28.19     (2) the permit is suspended for more than seven consecutive 
 28.20  days between May 1 and October 1. 
 28.21     (g) For once-through systems fees payable after July 1, 
 28.22  1993, 75 percent of the fees must be credited to a special 
 28.23  account and are appropriated to the Minnesota public facilities 
 28.24  authority for loans under section 446A.21. 
 28.25     Sec. 32.  Minnesota Statutes 1997 Supplement, section 
 28.26  115.55, subdivision 5a, is amended to read: 
 28.27     Subd. 5a.  [INSPECTION CRITERIA FOR EXISTING SYSTEMS.] (a) 
 28.28  An inspection of an existing system must evaluate the criteria 
 28.29  in paragraphs (b) to (h). 
 28.30     (b) If the inspector finds one or more of the following 
 28.31  conditions: 
 28.32     (1) sewage discharge to surface water; 
 28.33     (2) sewage discharge to ground surface; 
 28.34     (3) sewage backup; or 
 28.35     (4) a cesspool; or 
 28.36     (5) any other situation with the potential to immediately 
 29.1   and adversely affect or threaten public health or safety, 
 29.2   then the system constitutes an imminent threat to public health 
 29.3   or safety and, if not repaired, must be upgraded, replaced, or 
 29.4   its use discontinued within ten months of receipt of the notice 
 29.5   described in subdivision 5b, or within a shorter period of time 
 29.6   if required by local ordinance. 
 29.7      (c) An existing system that has none of the conditions in 
 29.8   paragraph (b), and has at least two feet of soil separation need 
 29.9   not be upgraded, repaired, replaced, or its use discontinued, 
 29.10  notwithstanding any local ordinance that is more restrictive. 
 29.11     (d) Paragraph (c) does not apply to systems in shoreland 
 29.12  areas regulated under sections 103F.201 to 103F.221, wellhead 
 29.13  protection areas as defined in section 103I.005, or those used 
 29.14  in connection with food, beverage, and lodging establishments 
 29.15  regulated under chapter 157. 
 29.16     (e) If the local unit of government with jurisdiction over 
 29.17  the system has adopted an ordinance containing local standards 
 29.18  pursuant to subdivision 7, the existing system must comply with 
 29.19  the ordinance.  If the system does not comply with the 
 29.20  ordinance, it must be upgraded, replaced, or its use 
 29.21  discontinued according to the ordinance. 
 29.22     (f) If a seepage pit, drywell, cesspool, or leaching pit 
 29.23  exists and the local unit of government with jurisdiction over 
 29.24  the system has not adopted local standards to the contrary, the 
 29.25  system is failing and must be upgraded, replaced, or its use 
 29.26  discontinued within the time required by subdivision 3 or local 
 29.27  ordinance. 
 29.28     (g) If the system fails to provide sufficient groundwater 
 29.29  protection, then the local unit of government or its agent shall 
 29.30  order that the system be upgraded, replaced, or its use 
 29.31  discontinued within the time required by rule or the local 
 29.32  ordinance. 
 29.33     (h) The authority to find a threat to public health under 
 29.34  section 145A.04, subdivision 8, is in addition to the authority 
 29.35  to make a finding under paragraphs (b) to (d). 
 29.36     Sec. 33.  Minnesota Statutes 1996, section 116.011, is 
 30.1   amended to read: 
 30.2      116.011 [ANNUAL POLLUTION REPORT.] 
 30.3      A goal of the pollution control agency is to reduce the 
 30.4   amount of pollution that is emitted in the state.  The pollution 
 30.5   control agency shall include in its annual performance report 
 30.6   information detailing the best estimate of the agency of the 
 30.7   total volume of water and air pollution that was emitted in the 
 30.8   state in the previous calendar year.  The agency shall report 
 30.9   its findings for both water and air pollution: 
 30.10     (1) in gross amounts, including the percentage increase or 
 30.11  decrease over the previous calendar year; and 
 30.12     (2) in a manner which will demonstrate the magnitude of the 
 30.13  various sources of water and air pollution; and 
 30.14     (3) in an annual record of all pollution emissions 
 30.15  exceeding permit levels for each emission facility, including 
 30.16  what enforcement action was taken by the agency.  
 30.17     The annual performance report must be given to the 
 30.18  legislature and made available to the public. 
 30.19     Sec. 34.  Minnesota Statutes 1997 Supplement, section 
 30.20  116.07, subdivision 7, is amended to read: 
 30.21     Subd. 7.  [COUNTIES; PROCESSING OF APPLICATIONS FOR ANIMAL 
 30.22  LOT PERMITS.] Any Minnesota county board may, by resolution, 
 30.23  with approval of the pollution control agency, assume 
 30.24  responsibility for processing applications for permits required 
 30.25  by the pollution control agency under this section for livestock 
 30.26  feedlots, poultry lots or other animal lots.  The responsibility 
 30.27  for permit application processing, if assumed by a county, may 
 30.28  be delegated by the county board to any appropriate county 
 30.29  officer or employee.  
 30.30     (a) For the purposes of this subdivision, the term 
 30.31  "processing" includes: 
 30.32     (1) the distribution to applicants of forms provided by the 
 30.33  pollution control agency; 
 30.34     (2) the receipt and examination of completed application 
 30.35  forms, and the certification, in writing, to the pollution 
 30.36  control agency either that the animal lot facility for which a 
 31.1   permit is sought by an applicant will comply with applicable 
 31.2   rules and standards, or, if the facility will not comply, the 
 31.3   respects in which a variance would be required for the issuance 
 31.4   of a permit; and 
 31.5      (3) rendering to applicants, upon request, assistance 
 31.6   necessary for the proper completion of an application. 
 31.7      (b) For the purposes of this subdivision, the term 
 31.8   "processing" may include, at the option of the county board, 
 31.9   issuing, denying, modifying, imposing conditions upon, or 
 31.10  revoking permits pursuant to the provisions of this section or 
 31.11  rules promulgated pursuant to it, subject to review, suspension, 
 31.12  and reversal by the pollution control agency.  The pollution 
 31.13  control agency shall, after written notification, have 15 days 
 31.14  to review, suspend, modify, or reverse the issuance of the 
 31.15  permit.  After this period, the action of the county board is 
 31.16  final, subject to appeal as provided in chapter 14. 
 31.17     (c) For the purpose of administration of rules adopted 
 31.18  under this subdivision, the commissioner and the agency may 
 31.19  provide exceptions for cases where the owner of a feedlot has 
 31.20  specific written plans to close the feedlot within five years.  
 31.21  These exceptions include waiving requirements for major capital 
 31.22  improvements. 
 31.23     (d) For purposes of this subdivision, a discharge caused by 
 31.24  an extraordinary natural event such as a precipitation event of 
 31.25  greater magnitude than the 25-year, 24-hour event, tornado, or 
 31.26  flood in excess of the 100-year flood is not a "direct discharge 
 31.27  of pollutants." 
 31.28     (e) In adopting and enforcing rules under this subdivision, 
 31.29  the commissioner shall cooperate closely with other governmental 
 31.30  agencies. 
 31.31     (f) The pollution control agency shall work with the 
 31.32  Minnesota extension service, the department of agriculture, the 
 31.33  board of water and soil resources, producer groups, local units 
 31.34  of government, as well as with appropriate federal agencies such 
 31.35  as the Soil Conservation Service and the Agricultural 
 31.36  Stabilization and Conservation Service, to notify and educate 
 32.1   producers of rules under this subdivision at the time the rules 
 32.2   are being developed and adopted and at least every two years 
 32.3   thereafter. 
 32.4      (g) The pollution control agency shall adopt rules 
 32.5   governing the issuance and denial of permits for livestock 
 32.6   feedlots, poultry lots or other animal lots pursuant to this 
 32.7   section.  A feedlot permit is not required for livestock 
 32.8   feedlots with more than ten but less than 50 animal units; 
 32.9   provided they are not in shoreland areas.  These rules apply 
 32.10  both to permits issued by counties and to permits issued by the 
 32.11  pollution control agency directly.  
 32.12     (h) The pollution control agency shall exercise supervising 
 32.13  authority with respect to the processing of animal lot permit 
 32.14  applications by a county. 
 32.15     (i) After May 17, 1997, any new rules or amendments to 
 32.16  existing rules proposed under the authority granted in this 
 32.17  subdivision, must be submitted to the members of legislative 
 32.18  policy committees with jurisdiction over agriculture and the 
 32.19  environment prior to final adoption.  The rules must not become 
 32.20  effective until 90 days after the proposed rules are submitted 
 32.21  to the members.  
 32.22     (j) The attorney general shall provide legal assistance to 
 32.23  counties that elect to adopt, review, or modify ordinances 
 32.24  relating to animal feedlots. 
 32.25     (k) A county may adopt by ordinance standards for animal 
 32.26  feedlots that are more stringent than standards in pollution 
 32.27  control agency rules. 
 32.28     Sec. 35.  Minnesota Statutes 1996, section 116.07, is 
 32.29  amended by adding a subdivision to read: 
 32.30     Subd. 7b.  [PERMIT REQUIREMENTS.] (a) Neither the pollution 
 32.31  control agency nor a county board may issue a permit to 
 32.32  construct or expand a feedlot if: 
 32.33     (1) the feedlot would operate with a clay, earthen, or 
 32.34  flexible membrane lined animal waste lagoon; or 
 32.35     (2) the feedlot has a design capacity of over 1,000 animal 
 32.36  units, unless the permit issued is an Individual National 
 33.1   Pollutant Discharge Elimination System (NPDES) permit as 
 33.2   required under the federal Clean Water Act. 
 33.3      (b) Paragraph (a) does not prohibit the issuance of a 
 33.4   permit for the construction of a clay, earthen, or flexible 
 33.5   membrane lined animal waste lagoon if the feedlot has a design 
 33.6   capacity of 750 animal units or less and is part of the animal 
 33.7   waste management facility for a dairy or beef cattle operation.  
 33.8   The animal unit capacity under this paragraph must be calculated 
 33.9   with regard only to the population of mature bovine animals and 
 33.10  must disregard animals that are (1) steers or slaughter heifers 
 33.11  under the weight of 800 pounds, or (2) replacement dairy stock. 
 33.12     (c) Existing animal feedlots having a design capacity of 
 33.13  1,000 animal units or more must be brought into compliance with 
 33.14  the requirement for a General National Pollutant Discharge 
 33.15  Elimination System (NPDES) permit as required under the federal 
 33.16  Clean Water Act. 
 33.17     Sec. 36.  [116.0711] [ANIMAL WASTE LIABILITY ACCOUNT; 
 33.18  SURCHARGE.] 
 33.19     Subdivision 1.  [ESTABLISHMENT OF ACCOUNT.] An animal waste 
 33.20  liability account is established in the environmental fund.  
 33.21  Money in the account is appropriated to the commissioner for 
 33.22  containment and cleanup of animal wastes. 
 33.23     Subd. 2.  [FEEDLOT PERMIT SURCHARGE.] A surcharge of $1 per 
 33.24  animal unit of design capacity for feedlots having a design 
 33.25  capacity of 750 animal units or more must be paid on feedlot 
 33.26  construction permits issued or renewed by the pollution control 
 33.27  agency or a county board.  Money collected under this section 
 33.28  must be deposited in the state treasury and credited to the 
 33.29  animal waste liability account.  
 33.30     Sec. 37.  [116.0712] [ANIMAL WASTE CONTROL AND SPILL 
 33.31  INVENTORY AND REPORTING; CONTINGENCY PLAN.] 
 33.32     The pollution control agency, in cooperation with the 
 33.33  commissioner of agriculture and county officials, shall 
 33.34  investigate the problems of proper control of animal wastes 
 33.35  generated by animal feedlots and conduct an inventory of animal 
 33.36  waste facilities and storage sites and the needs relative to the 
 34.1   management, transportation, and application of animal wastes and 
 34.2   shall develop an informational reporting system of animal waste 
 34.3   quantities generated, applied, and disposed of in the state.  
 34.4   The agency shall also develop a statewide animal waste 
 34.5   contingency plan including containment, closure, and cleanup 
 34.6   measures. 
 34.7      Sec. 38.  [116.0713] [DENIAL OF PERMIT APPLICATIONS.] 
 34.8      (a) The commissioner may reject an application for a permit 
 34.9   filed with the commissioner upon making a specific finding that: 
 34.10     (1) the applicant is unsuited or unqualified to perform the 
 34.11  obligations of a permit holder based upon a finding that the 
 34.12  applicant or any officer, director, partner, or resident general 
 34.13  manager of the facility for which application has been made: 
 34.14     (i) has misrepresented a material fact in applying for a 
 34.15  permit; 
 34.16     (ii) has violated environmental laws of any state or the 
 34.17  United States in a manner that has caused significant and 
 34.18  material environmental damage; 
 34.19     (iii) has had any permit revoked under the environmental 
 34.20  laws of any state or the United States; or 
 34.21     (iv) has otherwise demonstrated through previous actions 
 34.22  that the applicant lacks competency to reliably carry out the 
 34.23  obligations imposed by law upon the permit holder; or 
 34.24     (2) the application substantially duplicates an application 
 34.25  by the same applicant denied within the past five years, which 
 34.26  denial has not been reversed by a court of competent 
 34.27  jurisdiction.  Nothing in this section prohibits an applicant 
 34.28  from submitting a new application for a permit previously denied 
 34.29  if the new application represents a good faith attempt by the 
 34.30  applicant to correct the deficiencies that served as the basis 
 34.31  for the denial in the original application.  
 34.32     (b) All applications filed with the commissioner must 
 34.33  include a certification, sworn to under oath and signed by the 
 34.34  applicant, that the applicant is not disqualified by reason of 
 34.35  this section from obtaining a permit.  In the absence of 
 34.36  evidence to the contrary, that certification constitutes a prima 
 35.1   facie showing of the suitability and qualification of the 
 35.2   applicant.  If at any point in the application review, 
 35.3   recommendation, or hearing process, the commissioner finds the 
 35.4   applicant has made any material misrepresentation of fact in 
 35.5   regard to this certification, consideration of the application 
 35.6   may be suspended and the application may be rejected under this 
 35.7   section. 
 35.8      (c) Rejection of an application under this section 
 35.9   constitutes final agency action upon that application and may be 
 35.10  appealed to a district court as provided for in statute. 
 35.11     Sec. 39.  Minnesota Statutes 1997 Supplement, section 
 35.12  116.18, subdivision 3c, is amended to read: 
 35.13     Subd. 3c.  [INDIVIDUAL ON-SITE TREATMENT SYSTEMS PROGRAM.] 
 35.14  (a) Beginning in fiscal year 1989, up to ten percent of the 
 35.15  money to be awarded as grants under subdivision 3a in any single 
 35.16  fiscal year, up to a maximum of $1,000,000, may be set aside for 
 35.17  the award of grants by the agency to municipalities to reimburse 
 35.18  owners of individual on-site wastewater treatment systems for a 
 35.19  part of the costs of upgrading or replacing the systems. 
 35.20     (b) An individual on-site treatment system is a wastewater 
 35.21  treatment system, or part thereof, that uses soil treatment and 
 35.22  disposal technology to treat 5,000 gallons or less of wastewater 
 35.23  per day from dwellings or other establishments, or an 
 35.24  alternative discharging sewage system serving one or more 
 35.25  dwellings and other establishments that discharges less than 
 35.26  10,000 gallons of water per day and uses any treatment and 
 35.27  disposal methods other than subsurface soil treatment and 
 35.28  disposal, as permitted under section 115.58. 
 35.29     (c) Municipalities may apply yearly for grants of up to 50 
 35.30  percent of the cost of replacing or upgrading individual on-site 
 35.31  treatment systems within their jurisdiction, up to a limit of 
 35.32  $5,000 per system or per connection to a cluster system.  Before 
 35.33  agency approval of the grant application, a municipality must 
 35.34  certify that:  
 35.35     (1) it has adopted and is enforcing the requirements of 
 35.36  Minnesota Rules governing individual sewage treatment systems; 
 36.1      (2) the existing systems for which application is made do 
 36.2   not conform to those rules, are at least 20 years old, do not 
 36.3   serve seasonal residences, and were not constructed with state 
 36.4   or federal funds; and 
 36.5      (3) the costs requested do not include administrative 
 36.6   costs, costs for improvements or replacements made before the 
 36.7   application is submitted to the agency unless it pertains to the 
 36.8   plan finally adopted, and planning and engineering costs other 
 36.9   than those for the individual site evaluations and system design.
 36.10     (d) The federal and state regulations regarding the award 
 36.11  of state and federal wastewater treatment grants do not apply to 
 36.12  municipalities or systems funded under this subdivision, except 
 36.13  as provided in this subdivision.  
 36.14     (e) The agency shall adopt permanent rules regarding 
 36.15  priorities, distribution of funds, payments, inspections, 
 36.16  procedures for administration of the agency's duties, and other 
 36.17  matters that the agency finds necessary for proper 
 36.18  administration of grants awarded under this subdivision.  
 36.19     Sec. 40.  Minnesota Statutes 1996, section 308A.131, 
 36.20  subdivision 1, is amended to read: 
 36.21     Subdivision 1.  [CONTENTS.] (a) The incorporators shall 
 36.22  prepare the articles, which must include:  
 36.23     (1) the name of the cooperative; 
 36.24     (2) the purpose of the cooperative; 
 36.25     (3) the principal place of business for the cooperative; 
 36.26     (4) the period of duration for the cooperative, if the 
 36.27  duration is not to be perpetual; 
 36.28     (5) the total authorized number of shares and the par value 
 36.29  of each share if the cooperative is organized on a capital stock 
 36.30  basis; 
 36.31     (6) a description of the classes of shares, if the shares 
 36.32  are to be classified; 
 36.33     (7) a statement of the number of shares in each class and 
 36.34  relative rights, preferences, and restrictions granted to or 
 36.35  imposed upon the shares of each class, and a provision that only 
 36.36  common stockholders have voting power; 
 37.1      (8) a statement that individuals owning common stock shall 
 37.2   be restricted to one vote in the affairs of the cooperative or a 
 37.3   statement that the cooperative is one described in section 
 37.4   308A.641, subdivision 2; 
 37.5      (9) a statement that shares of stock are transferable only 
 37.6   with the approval of the board; 
 37.7      (10) a statement that dividends on the capital stock and 
 37.8   nonstock units of equity of the cooperative may not exceed eight 
 37.9   percent annually; 
 37.10     (11) the names, post office addresses, and terms of office 
 37.11  of the directors of the first board; 
 37.12     (12) a statement that net income in excess of dividends and 
 37.13  additions to reserves shall be distributed on the basis of 
 37.14  patronage, and that the records of the cooperative may show the 
 37.15  interest of patrons, stockholders of any classes, and members in 
 37.16  the reserves; and 
 37.17     (13) the registered office address of the cooperative and 
 37.18  the name of the registered agent, if any, at that address.  
 37.19     (b) The articles must always contain the provisions in 
 37.20  paragraph (a), except that the names, post office addresses, and 
 37.21  terms of offices of the directors of the first board may be 
 37.22  omitted after their successors have been elected by the members 
 37.23  or the articles are amended in their entirety. 
 37.24     (c) The articles may contain other lawful provisions.  
 37.25     (d) The articles must be signed by the incorporators.  
 37.26     Sec. 41.  Minnesota Statutes 1997 Supplement, section 
 37.27  308A.705, subdivision 1, is amended to read: 
 37.28     Subdivision 1.  [DISTRIBUTION OF NET INCOME.] Net income in 
 37.29  excess of dividends on capital stock, nonstock units of equity, 
 37.30  and additions to reserves shall be distributed on the basis of 
 37.31  patronage.  A cooperative may establish allocation units, 
 37.32  whether the units are functional, divisional, departmental, 
 37.33  geographic, or otherwise, and pooling arrangements and may 
 37.34  account for and distribute net income on the basis of allocation 
 37.35  units and pooling arrangements.  A cooperative may offset the 
 37.36  net loss of an allocation unit or pooling arrangement against 
 38.1   the net income of other allocation units or pooling arrangements 
 38.2   to the extent permitted by section 1388(j) of the Internal 
 38.3   Revenue Code of 1986, as amended through December 31, 1996. 
 38.4      Sec. 42.  Minnesota Statutes 1996, section 308A.705, 
 38.5   subdivision 3, is amended to read: 
 38.6      Subd. 3.  [DIVIDENDS.] Dividends may be paid on capital 
 38.7   stock and nonstock units of equity only if the net income of the 
 38.8   cooperative for the previous fiscal year is sufficient.  The 
 38.9   dividends are not cumulative. 
 38.10     Sec. 43.  [AGGREGATE RESOURCES TASK FORCE.] 
 38.11     Subdivision 1.  [CREATION; MEMBERSHIP.] (a) An aggregate 
 38.12  resources task force consists of 12 members appointed as follows:
 38.13     (1) the chair of the senate environment and agriculture 
 38.14  budget division shall appoint one citizen member with experience 
 38.15  in the state's aggregates industry, one citizen member who is an 
 38.16  employee of a local government unit that works with 
 38.17  environmental and land use impacts from aggregate mining, and 
 38.18  four members of the senate, two of whom must be members of the 
 38.19  minority caucus; and 
 38.20     (2) the chair of the house environment, natural resources 
 38.21  and agriculture finance committee shall appoint one citizen 
 38.22  member who is an employee of a local governmental unit that 
 38.23  works with environmental and land use impacts from aggregate 
 38.24  mining, one citizen member with experience in native prairie 
 38.25  conservation, and four members of the house, two of whom must be 
 38.26  members of the minority caucus.  
 38.27     (b) The appointing authorities must make their respective 
 38.28  appointments not later than July 1, 1998.  
 38.29     (c) The first meeting of the task force must be convened by 
 38.30  a person designated by the chair of the senate environment and 
 38.31  agriculture budget division.  Task force members shall then 
 38.32  elect a permanent chair from among the task force members.  
 38.33     Subd. 2.  [DUTIES.] The task force shall examine current 
 38.34  and projected issues concerning the need for and use of the 
 38.35  state's aggregate resources.  The task force shall seek input 
 38.36  from the aggregate industry, state agencies, counties, local 
 39.1   units of government, environmental organizations, and other 
 39.2   interested parties on aggregate resource issues, including 
 39.3   resource inventory, resource depletion, mining practices, 
 39.4   nuisance problems, safety, competing land uses and land use 
 39.5   planning, native prairie conservation, environmental review, 
 39.6   local permit requirements, reclamation, recycling, 
 39.7   transportation of aggregates, and the aggregate material tax.  
 39.8      Subd. 3.  [REPORT.] Not later than February 1, 2000, the 
 39.9   task force shall report to the legislature on the findings of 
 39.10  its study.  The report must include a recommendation as to 
 39.11  whether there is a need for a comprehensive statewide policy on 
 39.12  any aggregate resource issue.  If the task force recommends a 
 39.13  statewide policy, the report must include recommendations on the 
 39.14  framework for the statewide policy.  
 39.15     Subd. 4.  [EXPIRATION.] The aggregate resources task force 
 39.16  expires 45 days after its report and recommendations are 
 39.17  delivered to the legislature, or on June 30, 2001, whichever 
 39.18  date is earlier. 
 39.19     Sec. 44.  [GENERIC ENVIRONMENTAL IMPACT STATEMENT.] 
 39.20     (a) A generic environmental impact statement must be 
 39.21  prepared under the direction of the environmental quality board 
 39.22  to examine the long-term effects of the livestock industry as it 
 39.23  exists and as it is changing on the economy, environment, and 
 39.24  way of life of Minnesota and its citizens.  At a minimum, the 
 39.25  study must address: 
 39.26     (1) the overall dimensions of animal agriculture in 
 39.27  Minnesota, including species of livestock; an inventory of 
 39.28  numbers, types, and locations of facilities; and the related 
 39.29  support networks and economic activity involved in the life 
 39.30  cycles of livestock; 
 39.31     (2) environmental issues associated with livestock 
 39.32  production from growing feed to raising the animals to their 
 39.33  shipment to their processing and sale to consumer; effects on 
 39.34  air, groundwater, surface water, land, and other aspects of the 
 39.35  environment both within and without the state examined and 
 39.36  correlated to various management practices, facilities, and 
 40.1   other variables affecting the environment; 
 40.2      (3) economic issues such as the various financial and 
 40.3   ownership arrangements currently or potentially used in the 
 40.4   industries, patterns of vertical integration, size, long-term 
 40.5   sustainability of various forms of ownership and production 
 40.6   methods, access to markets, current and anticipated financial 
 40.7   trends, effects of governmental policies, and comparative 
 40.8   economic impact of alternative means of production; and 
 40.9      (4) the roles of various units of government in regulation 
 40.10  of various aspects of feedlot operation including federal, 
 40.11  state, interstate bodies, counties, townships, soil conservation 
 40.12  districts, watershed districts, and others with planning, 
 40.13  zoning, or environmental responsibilities. 
 40.14     (b) Not later than March 1, 1999, the environmental quality 
 40.15  board shall report to the agriculture finance committees of the 
 40.16  senate and the house of representatives an interim progress 
 40.17  report on the generic environmental impact statement under 
 40.18  paragraph (a).  The interim report must include a timeline and 
 40.19  progress toward accomplishing the goals of the impact statement. 
 40.20     Sec. 45.  [PROPOSED REVISED STANDARDS FOR HYDROGEN SULFIDE 
 40.21  EXPOSURE.] 
 40.22     Not later than June 30, 2000, the commissioner of the 
 40.23  pollution control agency, in consultation with the commissioners 
 40.24  of health and agriculture, shall propose revised standards for 
 40.25  hydrogen sulfide exposure levels within livestock confinement 
 40.26  facilities having a design capacity of 500 animal units or more 
 40.27  and at various distances up to 5,000 feet from animal waste 
 40.28  storage facilities.  The commissioner shall report the proposed 
 40.29  revised standards to the legislature not later than September 1, 
 40.30  2000. 
 40.31     Sec. 46.  [LIMITS ON FEEDLOT PERMITS.] 
 40.32     (a) Neither the pollution control agency nor a county may 
 40.33  issue a permit to construct or expand an animal feedlot having a 
 40.34  design capacity exceeding 750 animal units. 
 40.35     (b) If the feedlot is for beef cattle, the animal unit 
 40.36  capacity under this section must be calculated with regard only 
 41.1   to the population of beef cattle weighing 800 pounds or more. 
 41.2      (c) If the feedlot is for dairy cattle, the animal unit 
 41.3   capacity must be calculated with regard only to the population 
 41.4   of mature dairy stock, and must disregard replacement dairy 
 41.5   stock. 
 41.6      (d) If the feedlot is for breeding and farrowing swine, the 
 41.7   animal unit capacity must be calculated with regard only to 
 41.8   animals weighing 40 pounds or more. 
 41.9      Sec. 47.  [COUNTIES AND TOWNS TO REPORT.] 
 41.10     (a) Not later than August 1, 1998, each county and each 
 41.11  town that has adopted ordinances related to animal feedlots 
 41.12  shall supply copies of the ordinances to the commissioner of 
 41.13  agriculture.  A county or town that adopts a new or amended 
 41.14  ordinance related to animal feedlots shall report the new or 
 41.15  amended ordinance to the commissioner within 60 days after the 
 41.16  adoption. 
 41.17     (b) The reporting requirements of paragraph (a) expire 
 41.18  after June 30, 2001. 
 41.19     Sec. 48.  [LEGISLATIVE AUDITOR TO CONDUCT PROGRAM AUDIT.] 
 41.20     Not later than April 1, 1999, the legislative auditor shall 
 41.21  complete and report to the legislature on a program audit of 
 41.22  pollution control agency policies, procedures, and activities 
 41.23  related to animal feedlots as defined in Minnesota Rules, part 
 41.24  7020.0300, subpart 3.  The audit must consider, among other 
 41.25  issues, pollution control agency activities concerning: 
 41.26     (1) monitoring of odors and hydrogen sulfide levels at 
 41.27  various directions and distances from animal feedlot manure 
 41.28  lagoons; 
 41.29     (2) issuance of national pollutant discharge elimination 
 41.30  system (NPDES) permits as that duty is delegated under the 
 41.31  federal Clean Water Act; and 
 41.32     (3) oversight of feedlot rule enforcement in counties which 
 41.33  have elected to manage and enforce animal feedlot permitting 
 41.34  authority. 
 41.35     Sec. 49.  [LOON STUDY.] 
 41.36     The commissioner and nongame section of the department of 
 42.1   natural resources must survey and analyze the impact of personal 
 42.2   watercraft on loons in waters where loon nesting exists and 
 42.3   report to the house and senate environment policy committees by 
 42.4   January 1, 1999. 
 42.5      Sec. 50.  [BENTON COUNTY APPROPRIATIONS.] 
 42.6      The $85,000 appropriated for a grant to Benton county in 
 42.7   Laws 1997, chapter 216, section 2, subdivision 5, and any future 
 42.8   money appropriated to Benton county for payment of costs of a 
 42.9   final order or settlement of a lawsuit for environmental 
 42.10  response costs at a mixed municipal solid waste facility must be 
 42.11  apportioned among the local units of government that were 
 42.12  parties to the final order or settlement in the same proportion 
 42.13  that the local units of government agreed to as their share of 
 42.14  the liability. 
 42.15     Sec. 51.  [LOAN WORK PLAN.] 
 42.16     The loan awarded by the director of the office of 
 42.17  environmental assistance to United Recycling, Inc. under 
 42.18  Minnesota Statutes, section 115A.48, subdivision 5, and 
 42.19  Minnesota Rules, chapter 9210, is converted into a grant under 
 42.20  Minnesota Statutes, section 115A.0716, subdivision 1.  The 
 42.21  director shall disburse funds to United Recycling, Inc., 
 42.22  provided that the director has received a new project workplan 
 42.23  that includes performance goals for carpet recovery and 
 42.24  recycling, and demonstrates matching capital expenditures by the 
 42.25  recipient of an amount equal to or greater than the amount of 
 42.26  the grant award. 
 42.27     Sec. 52.  [WATER QUALITY COST-BENEFIT MODEL SCOPING TASK 
 42.28  FORCE.] 
 42.29     The commissioner of the pollution control agency shall 
 42.30  convene a task force comprising of no more than three 
 42.31  representatives each from industry, municipalities, watershed 
 42.32  management groups, labor, agriculture, and environmental groups 
 42.33  within 30 days of the effective date of this section.  The task 
 42.34  force shall select an entity to conduct a scoping study for a 
 42.35  cost-benefit model to analyze water quality standards.  The 
 42.36  scoping study shall include:  a watershed-based approach that 
 43.1   evaluates both point and nonpoint pollution sources, the extent 
 43.2   of the costs and benefits to be evaluated, the necessary 
 43.3   elements of the model, a model that is transferable to other 
 43.4   watersheds and standards, and the characteristics of the 
 43.5   watersheds and standards to be evaluated.  By October 15, 1998, 
 43.6   the task force shall review the completed scoping study and make 
 43.7   recommendations on the scope, cost, and time frame for 
 43.8   development of the model to the commissioner and to the chairs 
 43.9   of the house and senate environment and natural resources 
 43.10  committees, the chair of the house environment, natural 
 43.11  resources, and agriculture finance committee, and the chair of 
 43.12  the senate environment and agriculture budget division. 
 43.13     Sec. 53.  [EFFECTIVE DATES.] 
 43.14     Effective April 1, 1998, the commissioner of natural 
 43.15  resources may begin development of educational materials, 
 43.16  administrative and testing procedures, and a records program to 
 43.17  implement the personal watercraft certificate program under 
 43.18  section 22.  Sections 21, 24, and 25 are effective January 1, 
 43.19  1999.  Section 9 is effective July 1, 1999.  The remainder of 
 43.20  this act is effective the day following final enactment.