Journal of the House - 49th Day - Thursday, May 7, 2009

A quorum was present.

Magnus was excused.

Hoppe was excused until 11:25 a.m. Davids was excused until 1:35 p.m.

The Chief Clerk proceeded to read the Journal of the preceding day. Brown moved that further reading of the Journal be dispensed with and that the Journal be approved as corrected by the Chief Clerk. The motion prevailed.

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REPORTS OF STANDING COMMITTEES AND DIVISIONS

Solberg from the Committee on Ways and Means to which was referred:

H. F. No. 108, A bill for an act relating to traffic regulations; making seat belt violation a primary offense in all seating positions regardless of age; making technical changes; amending Minnesota Statutes 2008, sections 169.686, subdivisions 1, 2, by adding a subdivision; 171.05, subdivision 2b; 171.055, subdivision 2.

Reported the same back with the recommendation that the bill pass.

The report was adopted.

Solberg from the Committee on Ways and Means to which was referred:

H. F. No. 696, A bill for an act relating to state lands; providing for certain private sales to resolve trespass issues; authorizing acquisition of certain easements; modifying management authority for tax-forfeited lands; adding to and deleting from certain state parks; removing land from the Minnesota wild and scenic rivers program; authorizing public and private sales of surplus state land; providing for certain leases; modifying previous sales authorization and land description; requiring location of sites for veterans cemetery; amending Minnesota Statutes 2008, sections 84.0273; 282.04, subdivision 1; Laws 2007, chapter 131, article 2, section 38; Laws 2008, chapter 368, article 1, sections 21, subdivisions 4, 5; 34; proposing coding for new law in Minnesota Statutes, chapter 84.

Reported the same back with the recommendation that the bill pass.

The report was adopted.

Solberg from the Committee on Ways and Means to which was referred:

H. F. No. 927, A bill for an act relating to labor and industry; modifying construction codes and licensing; requiring rulemaking; amending Minnesota Statutes 2008, sections 326B.082, subdivision 12; 326B.084; 326B.121, by adding a subdivision; 326B.43, subdivision 1, by adding a subdivision; 326B.435, subdivisions 2, 6; 326B.475, subdivisions 1, 6; 326B.50, subdivision 3, by adding a subdivision; 326B.52; 326B.53; 326B.55; 326B.57; 326B.58; 326B.59; 326B.801; 326B.84; 326B.921, subdivision 1; 326B.974; proposing coding for new law in Minnesota Statutes, chapter 326B; repealing Minnesota Statutes 2008, section 326B.43, subdivision 5.

Reported the same back with the following amendments:

Page 7, delete section 11

Page 8, delete section 12

Page 14, line 6, delete "provide" and insert "allow to occur"

Renumber the sections in sequence and correct the internal references

Correct the title numbers accordingly

With the recommendation that when so amended the bill pass.

The report was adopted.

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Solberg from the Committee on Ways and Means to which was referred:

H. F. No. 1193, A bill for an act relating to claims against the state; providing for settlement of various claims; appropriating money.

Reported the same back with the recommendation that the bill pass.

The report was adopted.

Solberg from the Committee on Ways and Means to which was referred:

H. F. No. 1218, A bill for an act relating to state government; ratifying state labor contracts.

Reported the same back with the recommendation that the bill pass.

The report was adopted.

Carlson from the Committee on Finance to which was referred:

H. F. No. 1231, A bill for an act relating to state government; appropriating money from dedicated funds for natural resource and cultural heritage purposes.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

OUTDOOR HERITAGE FUND

Section 1. OUTDOOR HERITAGE FUND APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article. The appropriations are from the outdoor heritage fund and are available for the fiscal years indicated for each purpose. The figures "2010" and "2011" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal year 2011. "The biennium" is fiscal years 2010 and 2011.

APPROPRIATIONS

Available for the Year

Ending June 30

2010 2011

Sec. 2. OUTDOOR HERITAGE

Subdivision 1. Total Appropriation $69,230,000 $-0-

This appropriation is from the outdoor heritage fund.

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

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Subd. 2. Prairies 14,213,000 -0-

(a) Accelerated Prairie and Grassland Management

$1,700,000 in fiscal year 2010 is to the commissioner of natural resources to accelerate the restoration and enhancement of native prairie vegetation on public lands, including roadsides. A list of proposed projects, describing the types and locations of restorations and enhancements, must be provided as part of the required accomplishment plan. To the extent possible, prairie restorations conducted with money appropriated in this section must plant vegetation or sow seed only of ecotypes native to Minnesota, and preferably of the local ecotype, using a high diversity of species originating from as close to the restoration site as possible, and protect existing native prairies from genetic contamination.

(b) Green Corridor Legacy Program

$1,617,000 in fiscal year 2010 is to the commissioner of natural resources for an agreement with the Southwest Initiative Foundation or successor to acquire land for purposes allowed under the Minnesota Constitution, article XI, section 15, in Redwood County to be added to the state outdoor recreation system as defined in Minnesota Statutes, chapter 86A. A list of proposed fee title acquisitions must be provided as part of the required accomplishment plan. The commissioner of natural resources must agree to each proposed acquisition. No more than five percent of this appropriation may be spent on professional services directly related to this appropriation's purposes.

$3,000,000 in fiscal year 2010 is to the commissioner of natural resources for an agreement with Pheasants Forever or successor to acquire and restore land to be added to the state wildlife management area system. A list of proposed fee title acquisitions and a list of proposed restoration projects, describing the types and locations of restorations, must be provided as part of the required accomplishment plan. The commissioner of natural resources must agree to each proposed acquisition. To the extent possible, prairie restorations conducted with money appropriated in this section must plant vegetation or sow seed only of ecotypes native to Minnesota, and preferably of the local ecotype, using a high diversity of species originating from as close to the restoration site as possible, and protect existing native prairies from genetic contamination.

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(d) Accelerated Prairie Grassland Wildlife Management Area Acquisition

$3,913,000 in fiscal year 2010 is to the commissioner of natural resources to acquire land for wildlife management areas with native prairie or grassland habitats. A list of proposed fee title acquisitions must be provided as part of the required accomplishment plan.

(e) Northern Tall Grass Prairie National Wildlife Refuge Protection

$1,583,000 in fiscal year 2010 is to the commissioner of natural resources for an agreement with the United States Fish and Wildlife Service to acquire land or permanent easements within the Northern Tall Grass Prairie Habitat Preservation Area in western Minnesota. The commissioner may advance funds to the United States Fish and Wildlife Service. A list of proposed fee title and permanent easement acquisitions must be provided as part of the required accomplishment plan. Land acquired for these purposes must remain in the possession of a state or local government or private party based in Minnesota; a permanent easement may be granted.

(f) Bluffland Prairie Protection Initiative

$500,000 in fiscal year 2010 is to the commissioner of natural resources for an agreement with the Minnesota Land Trust or successor to acquire permanent easements protecting critical prairie and grassland habitats in the blufflands in southeastern Minnesota. A list of proposed fee title and permanent easement acquisitions must be provided as part of the required accomplishment plan.

(g) Rum River ─ Cedar Creek Initiative

$1,900,000 in fiscal year 2010 is to the commissioner of natural resources for an agreement with Anoka County to acquire land at the confluence of the Rum River and Cedar Creek in Anoka County. Acquired land must remain open to hunting and fishing, consistent with the capacity of the land, during the open season, as determined by the commissioner of natural resources. This is the first of two planned appropriations for this acquisition.

Subd. 3. Forests 20,000,000 -0-

$20,000,000 in fiscal year 2010 is to the commissioner of natural resources to acquire land or permanent working forest easements on private forests in areas identified through the state forest for the future program. Priority must be given to acquiring land or interests in private lands within existing Minnesota state forest

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boundaries. Any easements acquired must have a forest management plan as described in Minnesota Statutes, section 290C.02, subdivision 7. A list of proposed fee title and easement acquisitions must be provided as part of the required accomplishment plan. The appropriation is available for closings taking place after April 30, 2010. This is the first of two planned appropriations for this program. The commissioner shall, prior to acquiring land or interests under this provision, certify in writing that sound management of such land is assured, and sufficient assurance is contained in the legally binding language of any agreement. This written determination by the commissioner shall be published in the State Register.

Subd. 4. Wetlands 20,536,000 -0-

(a) Accelerated Wildlife Management Area Acquisition

$2,900,000 in fiscal year 2010 is to the commissioner of natural resources to acquire land for wildlife management areas. A list of proposed fee title acquisitions must be provided as part of the required accomplishment plan.

(b) Accelerated Shallow Lake Restorations and Enhancements

$2,528,000 in fiscal year 2010 is to the commissioner of natural resources for an agreement with Ducks Unlimited, Inc. or successor to restore and enhance shallow lake habitats. Up to $400,000 of this appropriation may be used for permanent easements related to shallow lake restorations and enhancements. A list of proposed easements and projects, describing the types and locations of easements, restorations, and enhancements, must be provided as part of the required accomplishment plan. The commissioner of natural resources must agree to each easement, restoration, and enhancement.

$5,600,000 in fiscal year 2010 is to the commissioner of natural resources for an agreement with Pheasants Forever or successor to acquire and restore wetland and related upland habitats, in cooperation with the United States Fish and Wildlife Service and Ducks Unlimited, Inc. or successor to be managed as waterfowl production areas. A list of proposed acquisitions and a list of proposed projects, describing the types and locations of restorations, must be provided as part of the required accomplishment plan.

(d) Shallow Lake Critical Shoreland

$450,000 in fiscal year 2010 is to the commissioner of natural resources for an agreement with Ducks Unlimited, Inc. or successor to protect habitat by acquiring land associated with

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shallow lakes. A list of proposed acquisitions must be provided as part of the required accomplishment plan. The commissioner of natural resources must agree to each proposed acquisition.

(e) Reinvest in Minnesota Wetlands Reserve Program Acquisition and Restoration

$9,058,000 in fiscal year 2010 is to the Board of Water and Soil Resources to acquire permanent easements and restore wetlands and associated uplands in cooperation with the United States Department of Agriculture Wetlands Reserve Program. A list of proposed acquisitions and a list of proposed projects, describing the types and locations of restorations, must be provided as part of the required accomplishment plan.

Subd. 5. Fish, Game, and Wildlife Habitat 13,903,000 -0-

(a) Outdoor Heritage Conservation Partners Grant Program

4,000,000 in fiscal year 2010 is to the commissioner of natural resources to provide competitive, matching grants of up to $400,000 to local, regional, state, and national organizations, including government, for enhancement, restoration, or protection of forests, wetlands, prairies, and habitat for fish, game, or wildlife in Minnesota. Up to 2-1/2 percent of this appropriation may be used for administering the grant. The funds may be advanced in three equal sums, on or after November 1, 2009, February 1, 2010, and April 1, 2010. Grantees may protect land through acquisition of land or interests in land. Easements must be permanent. Land acquired in fee must be open to hunting and fishing during the open season unless otherwise provided by state law. The commissioner of natural resources must agree to each proposed acquisition of land or interest in land. The program shall require a match of at least $1 nonstate funds to $10 state funds. The nonstate dollars match may be in-kind. The criteria for evaluating grant applications must include amount of habitat restored, enhanced, or protected; local support; degree of collaboration; urgency; multiple benefits; habitat benefits provided; consistency with sound conservation science; adjacency to protected lands; full funding of the project; supplementing existing funding; public access for hunting and fishing during the open season; sustainability; and use of native plant materials. All projects must conform to the Minnesota statewide conservation and preservation plan. Wildlife habitat projects must also conform to the state wildlife action plan. Priority shall be given to projects acquiring land or easements associated with existing wildlife management areas. All restoration or enhancement projects must be on land permanently protected by conservation easement or public ownership. To the extent possible, prairie restorations conducted with money appropriated in this section must plant vegetation or sow seed only of ecotypes native to Minnesota, and preferably of

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the local ecotype, using a high diversity of species originating from as close to the restoration site as possible, and protect existing native prairies from genetic contamination. Subdivision 10 applies to grants awarded under this paragraph. This appropriation is available until June 30, 2013, at which time all grant projects must be completed and final products delivered, unless an earlier date is specified in the grant agreement. No less than 15 percent of the amount of each grant must be held back from reimbursement until the grant recipient has completed a grant accomplishment report in the form prescribed by and satisfactory to the Outdoor Heritage Council.

(b) Aquatic Management Area Acquisition

$5,748,000 in fiscal year 2010 is to the commissioner of natural resources to acquire land in fee title and easement to be added to the state aquatic management area system. Acquired land must remain open to hunting and fishing, consistent with the capacity of the land, during the open season, as determined by the commissioner of natural resources. A list of proposed fee title and easement acquisitions must be provided as part of the required accomplishment plan.

$2,050,000 in fiscal year 2010 is to the commissioner of natural resources for an agreement with Trout Unlimited or successor to restore, enhance, and protect cold water river and stream habitats in Minnesota. A list of proposed acquisitions and a list of proposed projects, describing the types and locations of restorations and enhancements, must be provided as part of the required accomplishment plan. The commissioner of natural resources must agree to each proposed acquisition, restoration, and enhancement.

(d) Dakota County Habitat Protection

$1,000,000 in fiscal year 2010 is to the commissioner of natural resources for an agreement with Dakota County for acquisition of permanent easements. A list of proposed acquisitions must be provided as part of the required accomplishment plan.

(e) Lake Rebecca Water Quality Improvement Project

$450,000 in fiscal year 2010 is to the commissioner of natural resources for an agreement with the Three Rivers Park District to improve the water quality in Lake Rebecca in Lake Rebecca Park Reserve in Hennepin County. A description of the activities to enhance fish habitat in Lake Rebecca must be provided as part of the required accomplishment plan.

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(f) Fountain Lake Fish Barriers

$655,000 in fiscal year 2010 is to the commissioner of natural resources for an agreement with the Shell Rock River Watershed District to construct fish barriers at three locations on Fountain Lake. Land acquisition necessary for fish barrier construction is permitted. A list of proposed projects, describing the types and locations of barriers, must be provided as part of the required accomplishment plan. The commissioner of natural resources must agree to each proposed barrier.

Subd. 6. Administration and Other 578,000 -0-

(a) Contract Management

$175,000 in fiscal year 2010 is to the commissioner of natural resources for contract management in fiscal years 2010 and 2011 for duties assigned in this section.

(b) Legislative Coordinating Commission

$403,000 in fiscal year 2010 is to the Legislative Coordinating Commission for administrative expenses of the Outdoor Heritage Council and for compensation and expense reimbursement of council members. Up to $100,000 may be transferred to the water recreation account as reimbursement for advances to the Outdoor Heritage Council made in fiscal year 2009. No more than 1.25 full-time equivalent staff positions may be created with these funds. Excess funds not required for the purposes of this section shall be returned by the Legislative Coordinating Commission.

Subd. 7. Availability of Appropriation

Unless otherwise provided, the amounts in this section are available until June 30, 2011, when projects must be completed and final accomplishments reported. For acquisition of an interest in real property, the amounts in this section are available until June 30, 2012. If a project receives federal funds, the time period of the appropriation is extended to equal the availability of federal funding.

Subd. 8. Cash Advances

When the project authorized under subdivision 3 would be impeded by projected cash deficiencies resulting from delays in the receipt of dedicated income, and when the deficiencies would be corrected within fiscal year 2010, the commissioner of finance may use fund-level cash reserves to meet cash demands of the project. If funds are transferred from the general fund to meet cash flow needs, the cash flow transfers must be returned to the general fund as soon as sufficient cash balances are available in the outdoor

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heritage fund. Any interest earned on general fund cash flow transfers accrues to the general fund and not to the outdoor heritage fund.

Subd. 9. Accomplishment Plans

It is a condition of acceptance of the appropriations made by this section that the agency or entity using the appropriation shall submit to the council an accomplishment plan and periodic accomplishment reports in the form determined by the Outdoor Heritage Council. The accomplishment plan must account for the use of the appropriation and outcomes of the expenditure in measures of wetlands, prairies, forests, and fish, game, and wildlife habitat restored, protected, and enhanced. The plan must include evaluation of results. None of the money provided in this section may be expended unless the council has approved the pertinent accomplishment plan.

Subd. 10. Project Requirements

(a) As a condition of accepting an appropriation in this section, any agency or entity receiving an appropriation must, for any project funded in whole or in part with funds from the appropriation:

(1) plant vegetation or sow seed only of ecotypes native to Minnesota, and preferably of the local ecotype, using a high diversity of species originating from as close to the restoration site as possible, and protect existing native prairies from genetic contamination, to the extent possible if conducting prairie restorations is a component of the accomplishment plan;

(2) provide that all easements:

(i) are permanent;

(ii) specify the parties to an easement in the easement;

(iii) specify all of the provisions of an agreement that are permanent;

(iv) are sent to the office of the Outdoor Heritage Council; and

(v) include a long-term stewardship plan and funding for monitoring and enforcing the easement agreement;

(3) for all restorations, prepare an ecological restoration and management plan that, to the degree practicable, is consistent with the highest quality conservation and ecological goals for the restoration site. Consideration should be given to soil, geology, topography, and other relevant factors that would provide the best chance for long-term success of the restoration projects. The plan

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shall include the proposed timetable for implementing the restoration, including, but not limited to, site preparation, establishment of diverse plant species, maintenance, and additional enhancement to establish the restoration; identify long-term maintenance and management needs of the restoration and how the maintenance, management, and enhancement will be financed; and use the best available science to achieve the best restoration;

(4) for new lands acquired, prepare a restoration and management plan in compliance with clause (3), including identification of sufficient funding for implementation;

(5) to ensure public accountability for the use of public funds, provide to the Outdoor Heritage Council documentation of the selection process used to identify parcels acquired and provide documentation of all related transaction costs, including, but not limited to, appraisals, legal fees, recording fees, commissions, other similar costs, and donations. This information must be provided for all parties involved in the transaction. The recipient shall also report to the Outdoor Heritage Council any difference between the acquisition amount paid to the seller and the state-certified or state-reviewed appraisal. Acquisition data such as appraisals may remain private during negotiations but must ultimately be made public according to Minnesota Statutes, chapter 13;

(6) provide that all restoration and enhancement projects are on land permanently protected by conservation easement or public ownership;

(7) to the extent the appropriation is used to acquire an interest in real property, provide to the Outdoor Heritage Council and the commissioner of finance an analysis of increased operations and maintenance costs likely to be incurred by public entities as a result of the acquisition and of how these costs may be paid for; and

(8) give consideration to and make timely written contact with the Minnesota Conservation Corps for consideration of possible use of their services to contract for restoration and enhancement services.

Subd. 11. Payment Conditions and Capital Equipment Expenditures

All agreements, grants, or contracts referred to in this section must be administered on a reimbursement basis unless otherwise provided in this section. Payments for reimbursement may not be made before November 1, 2009. Notwithstanding Minnesota Statutes, section 16A.41, expenditures directly related to each appropriation's purpose made on or after July 1, 2009, are eligible for reimbursement unless otherwise provided in this section.

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Periodic payment must be made upon receiving documentation that the deliverable items articulated in the approved accomplishment plan have been achieved, including partial achievements as evidenced by approved progress reports. Reasonable amounts may be advanced to projects to accommodate cash flow needs or to match federal share. The advances must be approved as part of the accomplishment plan. Capital equipment expenditures in excess of $10,000 must be approved as part of the accomplishment plan.

Subd. 12. Purchase of Recycled and Recyclable Materials

A political subdivision, public or private corporation, or other entity that receives an appropriation in this section must use the appropriation in compliance with Minnesota Statutes, sections 16B.121, regarding purchase of recycled, repairable, and durable materials, and 16B.122, regarding purchase and use of paper stock and printing.

Subd. 13. Accessibility

Structural and nonstructural facilities must meet the design standards in the Americans with Disabilities Act (ADA) accessibility guidelines.

Subd. 14. Land Acquisition Restrictions

(a) An interest in real property, including but not limited to an easement or fee title, that is acquired with money appropriated under this section must be used in perpetuity or for the specific term of an easement interest for the purpose for which the appropriation was made.

(b) A recipient of funding who acquires an interest in real property subject to this subdivision may not alter the intended use of the interest in real property or convey any interest in the real property acquired with the appropriation without the prior review and approval of the Outdoor Heritage Council or its successor. The council shall establish procedures to review requests from recipients to alter the use of or convey an interest in real property. These procedures shall allow for the replacement of the interest in real property with another interest in real property meeting the following criteria:

(1) the interest is at least equal in fair market value, as certified by the commissioner of natural resources, to the interest being replaced; and

(2) the interest is in a reasonably equivalent location and has a reasonably equivalent useful conservation purpose compared to the interest being replaced.

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(c) A recipient of funding who acquires an interest in real property under paragraph (a) must separately record a notice of funding restrictions in the appropriate local government office where the conveyance of the interest in real property is filed. The notice of funding agreement must contain:

(1) a legal description of the interest in real property covered by the funding agreement;

(2) a reference to the underlying funding agreement;

(3) a reference to this section; and

(4) the following statement: "This interest in real property shall be administered in accordance with the terms, conditions, and purposes of the grant agreement controlling the acquisition of the property. The interest in real property, or any portion of the interest in real property, shall not be sold, transferred, pledged, or otherwise disposed of or further encumbered without obtaining the prior written approval of the Outdoor Heritage Council or its successor. If the holder of the interest in real property fails to comply with the terms and conditions of the grant agreement or work program, ownership of the interest in real property shall transfer to the state."

Subd. 15. Real Property Interest Report

By December 1 each year, a recipient of money appropriated under this section that is used for the acquisition of an interest in real property, including but not limited to an easement or fee title, must submit annual reports on the status of the real property to the Outdoor Heritage Council or its successor in a form determined by the council. The responsibility for reporting under this section may be transferred by the recipient of the appropriation to another person or entity that holds the interest in the real property. To complete the transfer of reporting responsibility, the recipient of the appropriation must:

(1) inform the person to whom the responsibility is transferred of that person's reporting responsibility;

(2) inform the person to whom the responsibility is transferred of the property restrictions under subdivision 14; and

(3) provide written notice to the council of the transfer of reporting responsibility, including contact information for the person to whom the responsibility is transferred. Before the transfer, the entity receiving the transfer of property must certify to the Outdoor Heritage Council, or its successor, acceptance of all obligations and responsibilities held by the prior owner.

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After the transfer, the person or entity that holds the interest in the real property is responsible for reporting requirements under this section.

Subd. 16. Reports to Finance

All reports submitted to the Outdoor Heritage Council by recipients of money appropriated under this section must also submit the reports to the commissioner of finance. The commissioner must maintain a Web site with a searchable data base providing the public with information on expenditures from the outdoor heritage fund. To the extent practical the commissioner must use systems developed to track expenditure of federal money under the American Recovery and Reinvestment Act to track expenditures from the outdoor heritage fund.

Sec. 3. LEGISLATURE. $117,000 $165,000

$54,000 the first year and $36,000 the second year are for the Legislative Coordinating Commission to fulfill the duties required under Minnesota Statutes, section 3.303, subdivision 10.

$63,000 the first year and $63,000 the second year are for the legislative auditor to conduct restoration audits under Minnesota Statutes, section 3.971, subdivision 9, and $66,000 the second year is for program and financial audits.

Sec. 4. REVISOR'S INSTRUCTION.

The revisor shall remove all references to the "Lessard Outdoor Heritage Council" in Minnesota Statutes, and replace those references with "Outdoor Heritage Council."

ARTICLE 2

CLEAN WATER FUND

Section 1. CLEAN WATER FUND APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article. The appropriations are from the clean water fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2010" and "2011" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal year 2011. "The biennium" is fiscal years 2010 and 2011. Appropriations for the fiscal year ending June 30, 2009, are effective the day following final enactment. All appropriations in this article are onetime only.

APPROPRIATIONS

Available for the Year

Ending June 30

2010 2011

Sec. 2. DEPARTMENT OF AGRICULTURE $3,414,000 $5,850,000

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(a) $339,000 the first year is to intensively monitor and analyze three sub-watersheds for changes in agricultural runoff related to land management practices and evaluate best management practices in sub-watersheds within the Root River Watershed in southeastern Minnesota. The commissioner shall submit a report on the use of this appropriation to the chairs of the house of representatives and senate committees with jurisdiction over agriculture, agriculture finance, environment and natural resources, and environment and natural resources finance by January 15, 2012. This appropriation is available until spent.

(b) $325,000 the first year and $350,000 the second year are to increase monitoring for pesticides and pesticide degradates in surface water and groundwater and to use data collected to assess pesticide use practices.

(c) $375,000 the first year and $750,000 the second year are to increase drinking water protection from agricultural chemicals, primarily nitrates.

(d) $875,000 the first year and $1,750,000 the second year are for research, pilot projects, and technical assistance related to ways agricultural practices can contribute to restoring impaired waters. Of this amount, $330,000 the first year and $330,000 the second year may be used for technical assistance and grants to establish a conservation drainage program in consultation with the Board of Water and Soil Resources and the drainage workgroup that consists of pilot projects to retrofit existing drainage systems with water quality improvement practices, evaluate outcomes, and provide outreach to landowners, public drainage authorities, drainage engineers and contractors, and others.

(e) $1,000,000 the first year and $2,500,000 the second year are for the agricultural best management practices loan program. At least $965,000 the first year and at least $2,400,000 the second year are for transfer to the agricultural best management practices loan account created pursuant to Minnesota Statutes, section 17.117, subdivision 5a, and are available for pass-through to local governments and lenders for low-interest loans. Loans under this paragraph are to be repaid to the clean water fund established under the Minnesota Constitution, article XI, section 15.

(f) $500,000 the first year and $500,000 the second year are for a transfer to the Board of Water and Soil Resources for feedlot water quality improvement grants to operations with 300 or fewer animal units and prioritized by pollution prevention potential. The board shall give priority consideration to projects that leverage federal or other nonstate funds or contributions and to projects that address high-priority needs identified in local water management plans. These amounts are in addition to any amount recommended by another committee for feedlot water quality improvement grants.

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Sec. 3. PUBLIC FACILITIES AUTHORITY $8,125,000 $17,250,000

(a) $5,000,000 the first year and $10,000,000 the second year are for the total maximum daily load grant program under Minnesota Statutes, section 446A.073. This appropriation is available until spent.

(b) $2,500,000 the first year and $5,000,000 the second year are for the clean water legacy phosphorus reduction grant program under Minnesota Statutes, section 446A.074. This appropriation is available until spent.

(c) $125,000 the first year and $250,000 the second year are for the small community wastewater treatment program for technical assistance grants under Minnesota Statutes, section 446A.075. This appropriation is available until spent.

(d) $500,000 the first year and $2,000,000 the second year are for the small community wastewater treatment program for reconstruction loans and grants under Minnesota Statutes, section 446A.075. This appropriation is available until spent.

Sec. 4. POLLUTION CONTROL AGENCY $16,503,000 $23,688,000

(a) $9,000,000 the first year and $9,000,000 the second year are to develop total maximum daily load (TMDL) studies and TMDL implementation plans for waters listed on the United States Environmental Protection Agency approved impaired waters list in accordance with Minnesota Statutes, chapter 114D. The agency shall complete an average of ten percent of the TMDLs each year over the biennium.

(b) $500,000 the first year and $1,188,000 the second year are for development of an enhanced TMDL database to manage and track progress. Of this amount, $63,000 the first year is to promulgate rules.

(c) $1,500,000 the first year and $3,500,000 the second year are for grants under Minnesota Statutes, section 116.195, to political subdivisions for up to 50 percent of the costs to predesign, design, and implement capital projects that use treated municipal wastewater instead of groundwater from drinking water aquifers, in order to demonstrate the beneficial use of wastewater, including the conservation and protection of water resources.

(d) $750,000 the first year and $1,500,000 the second year are for groundwater assessment and drinking water protection to include:

(1) the installation and sampling of at least 30 new monitoring wells;

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(2) the analysis of samples from at least 40 shallow monitoring wells each year for the presence of endocrine disrupting compounds; and

(3) the completion of at least four to five groundwater models for TMDL and watershed plans.

(e) $348,000 the first year is to retest the comprehensive assessment of the biological conditions of the lower Minnesota River and its tributaries within the Lower Minnesota River Major Watershed, as previously assessed from 1976 to 1992 under the Minnesota River Assessment Project (MRAP). The assessment must include the same fish species sampling at the same 116 locations and the same macroinvertebrate sampling at the same 41 locations as the MRAP assessment. The assessment must:

(1) include an analysis of the findings; and

(2) identify factors that limit aquatic life in the Minnesota River.

(f) $2,500,000 the first year and $7,500,000 the second year are for the clean water partnership program. Priority shall be given to projects preventing impairments and degradation of lakes, rivers, streams, and groundwater in accordance with Minnesota Statutes, section 114D.20, subdivision 2, clause (4). Any balance remaining in the first year does not cancel and is available for the second year.

(g) $1,000,000 the first year is to establish a network of water monitoring sites in public waters adjacent to wastewater treatment facilities across the state to assess levels of endocrine-disrupting compounds, antibiotic compounds, and pharmaceuticals as required in this article.

(h) $155,000 the first year is to provide notification of the potential for coal tar contamination, establish a storm water pond inventory schedule, and develop best management practices for treating and cleaning up contaminated sediments as required in this article. $1,000,000 the second year is to develop a model ordinance for the restricted use of undiluted coal tar sealants and to provide grants to local units of government for up to 50 percent of the costs to implement best management practices to treat or clean up contaminated sediments in storm water ponds and other waters as defined under this article. Local governments must have adopted an ordinance for the restricted use of undiluted coal tar sealants in order to be eligible for a grant, unless a statewide restriction has been implemented. A grant awarded under this paragraph must not exceed $100,000.

(i) $750,000 in fiscal year 2010 is for a restoration project in the lower St. Louis River and Duluth harbor.

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Notwithstanding Minnesota Statutes, section 16A.28, the appropriations encumbered on or before June 30, 2011, as grants or contracts in this subdivision are available until June 30, 2013.

Sec. 5. DEPARTMENT OF NATURAL RESOURCES $5,208,000 $9,566,000

(a) $1,050,000 the first year and $1,665,000 the second year are for work assisting in water quality assessment, total maximum daily load study and implementation, and watershed restoration and protection.

(b) $375,000 the first year and $750,000 the second year are for drinking water planning and protection activities.

(c) $950,000 the second year is for work assisting in water quality assessment, total maximum daily load study and implementation, and watershed restoration and protection in accordance with Minnesota Statutes, chapter 114D.

(d) $1,058,000 the first year and $1,601,000 the second year are for work assisting in water quality assessment, total maximum daily load study and implementation, and watershed restoration and protection in accordance with Minnesota Statutes, chapter 114D.

(e) $2,500,000 the first year and $2,500,000 the second year are to acquire and distribute high-resolution digital elevation data to be used to predict water and sediment flows, and for planning and installation measures to clean up impaired waters. The data will be collected for areas of the state that have not acquired such data prior to January 1, 2007, or to complete acquisition and distribution of the data for those areas of the state that have not previously received state funds for acquiring and distributing the data. The distribution of data acquired under this paragraph must be conducted under the auspices of the Land Management Information Center or its successor, which shall receive 2.5 percent of the appropriation in this paragraph to support coordination of data acquisition and distribution. Mapping and data set distribution under this paragraph must be completed within three years of funds availability. The commissioner shall utilize department staff whenever possible. The commissioner may contract for services only if they cannot otherwise be provided by the department. If the commissioner contracts for services with this appropriation and any of the work done under the contract will be done outside of the United States, the commissioner must report to the chairs of the house of representatives and senate finance committees on the proposed contract at least 30 days before entering into the contract. The report must include an analysis of why the contract with the selected contractor provides the state with "best value," as defined in Minnesota Statutes, section 16C.02; any alternatives to the selected contractor that were

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considered; what data will be provided to the contractor, including the data that will be transmitted outside of the United States; what security measures will be taken to ensure that the data is treated in accordance with the Minnesota Government Data Practices Act; and what remedies will be available to the state if the data is not treated in accordance with the Minnesota Government Data Practices Act.

(f) $225,000 the first year and $225,000 the second year are to adopt rules for the Mississippi River corridor critical area under Minnesota Statutes, section 116G.15. The commissioner shall begin rulemaking under chapter 14 no later than January 15, 2010. At least 30 days prior to beginning the rulemaking, the commissioner shall notify local units of government within the Mississippi River corridor critical area of the intent to adopt rules. The local units of government shall make reasonable efforts to notify the public of the contact information for the appropriate department staff. The commissioner shall maintain an e-mail list of interested parties to provide timely information about the proposed schedule for rulemaking, opportunities for public comment, and contact information for the appropriate department staff.

(g) $1,875,000 the second year is to investigate physical and recharge characteristics as part of the collection and interpretation of subsurface geological information and acceleration of the county geologic atlas program. This appropriation represents a continuing effort to complete the county geologic atlases throughout the state in order to provide information and assist in planning for the sustainable use of ground and surface water that does not harm ecosystems, degrade water quality, or compromise the ability of future generations to meet their own needs. This appropriation is available until December 31, 2014.

Sec. 6. BOARD OF WATER AND SOIL RESOURCES $7,000,000 $18,424,000

(a) $1,500,000 the first year and $5,000,000 the second year are to purchase and restore permanent conservation easements on riparian buffers of up to 100 feet adjacent to public waters, excluding wetlands, to keep water on the land in order to decrease sediment, pollutant and nutrient transport, reduce hydrologic impacts to surface waters, and increase infiltration for groundwater recharge. The riparian buffers must be at least 50 feet unless there is a natural impediment, a road, or other impediment beyond the control of the landowner. This appropriation may be used for restoration of riparian buffers protected by easements purchased with this appropriation and for stream bank restorations when the riparian buffers have been restored. Up to five percent may be used for administration of this program.

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(b) $1,500,000 the first year and $4,424,000 the second year are for grants to watershed districts and watershed management organizations for: (i) structural or vegetative management practices that reduce storm water runoff from developed or disturbed lands to reduce the movement of sediment, nutrients, and pollutants or to leverage federal funds for restoration, protection, or enhancement of water quality in lakes, rivers, and streams and to protect groundwater and drinking water; and (ii) the installation of proven and effective water retention practices including, but not limited to, rain gardens and other vegetated infiltration basins and sediment control basins in order to keep water on the land. The projects must be of long-lasting public benefit, include a local match, and be consistent with TMDL implementation plans or local water management plans. Watershed district and watershed management organization staff and administration may be used for local match. Priority may be given to school projects that can be used to demonstrate water retention practices. Up to five percent may be used for administering the grants.

(c) $1,500,000 the first year and $4,500,000 the second year are for nonpoint source pollution reduction and restoration grants to watershed districts, watershed management organizations, and soil and water conservation districts for grants in addition to grants available under paragraphs (a) and (b) to keep water on the land and to protect, enhance, and restore water quality in lakes, rivers, and streams, and to protect groundwater and drinking water. The projects must be of long-lasting public benefit, include a local match, and be consistent with TMDL implementation plans or local water management plans. Up to five percent may be used for administering the grants.

(d) $500,000 the first year and $1,500,000 the second year are for permanent conservation easements on wellhead protection areas under Minnesota Statutes, section 103F.515, subdivision 2, paragraph (d). Priority must be placed on land that is located where the vulnerability of the drinking water supply management area, as defined under Minnesota Rules, part 4720.5100, subpart 13, is designated as high or very high by the commissioner of health.

(e) $1,000,000 the first year and $2,000,000 the second year are for feedlot water quality improvement grants for feedlots under 300 animal units on riparian land, to include water quality assessment to determine the effectiveness of the grants in protecting, enhancing, and restoring water quality in lakes, rivers, and streams, and in protecting groundwater from degradation.

(f) $1,000,000 the first year and $1,000,000 the second year are for grants to implement stream bank, stream channel, and lakeshore, line protection, and restoration projects to protect water quality.

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The board shall contract for services with the Minnesota Conservation Corps for restoration, maintenance, and other activities under this section for at least $500,000 the first year and $500,000 the second year.

The board may shift grant or cost-share funds in this section and may adjust the technical and administrative assistance portion of the funds to leverage federal or other nonstate funds or to address oversight responsibilities or high-priority needs identified in local water management plans.

The board shall give priority consideration to projects and practices that complement, supplement, or exceed current state standards for protection, enhancement, and restoration of water quality in lakes, rivers, and streams or that protect groundwater from degradation.

To the extent possible, any restoration conducted with money appropriated in this section must plant vegetation or sow seed only of ecotypes native to Minnesota, and preferably of the local ecotype, using a high diversity of species originating from as close to the restoration site as possible, and protect existing native prairies from genetic contamination.

The board shall submit a report on the expenditure and use of money appropriated under this section to the chairs of the house of representatives and senate committees with jurisdiction over environment and natural resources and environment and natural resources finance by March 1 of each year. The report must provide detail on: the expenditure of funds, including maps; the effectiveness of the expenditures in protecting, enhancing, and restoring water quality in lakes, rivers, and streams and protecting groundwater from degradation; and the effectiveness of the expenditures in keeping water on the land.

Sec. 7. DEPARTMENT OF HEALTH $1,250,000 $2,500,000

(a) $805,000 the first year and $1,610,000 the second year are for protection of drinking water sources, including assisting 30 or more communities in fiscal year 2010 and 60 or more communities in fiscal year 2011 with the development and implementation of community source water protection plans before new community wells are installed, and awarding ten or more communities in fiscal year 2010 and 20 or more communities in fiscal year 2011 with source water protection implementation grants.

(b) $445,000 the first year and $890,000 the second year are for addressing public health concerns related to contaminants found in Minnesota drinking water for which no health-based drinking water standard exists. The commissioner shall characterize and issue health-based guidance for three or more additional

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unregulated drinking water contaminants in fiscal year 2010, and seven or more additional unregulated drinking water contaminants in fiscal year 2011.

Sec. 8. UNIVERSITY OF MINNESOTA $750,000 $820,000

(a) $820,000 the second year is for the geological survey to continue and to initiate the production of county geologic atlases. This appropriation represents a continuing effort to complete the county geologic atlases throughout the state in order to provide information and assist in planning for the sustainable use of ground and surface water that does not harm ecosystems, degrade water quality, or compromise the ability of future generations to meet their own needs. This appropriation is available until December 31, 2014.

(b) $750,000 the first year is to develop the comprehensive statewide sustainable water resources ten-year plan and 25-year detailed framework in article 5.

Sec. 9. LEGISLATURE $117,000 $165,000

(a) $54,000 the first year and $36,000 the second year are for the Legislative Coordinating Commission to fulfill the duties as required under Minnesota Statutes, section 3.303, subdivision 10.

(b) $63,000 the first year and $63,000 the second year are for the legislative auditor to conduct restoration audits under Minnesota Statutes, section 3.971, subdivision 9, and $66,000 the second year is for program and financial audits.

Sec. 10. Minnesota Statutes 2008, section 17.117, subdivision 11a, is amended to read:

Subd. 11a. Eligible projects. All projects that remediate or mitigate adverse environmental impacts are eligible if:

(1) the project is eligible under the allocation agreement and funding sources designated by the local government unit to finance the project; and

(2) manure management projects remediate or mitigate impacts from facilities with less than 1,000 animal units as defined in Minnesota Rules, chapter 7020.

The purchase of variable rate fertilizer application machinery or equipment is an eligible project if the machinery or equipment is capable of precision-applying three or more products simultaneously and the person commits to using the machinery or equipment in this state for at least five years. The maximum loan amount for this purpose is $100,000.

Sec. 11. Minnesota Statutes 2008, section 103F.515, subdivision 2, is amended to read:

Subd. 2. Eligible land. (a) Land may be placed in the ~~conservation~~ reinvest in Minnesota reserve program if the land meets the requirements of paragraphs (b) and (c) or paragraph (d).

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(b) Land is eligible if the land:

(1) is marginal agricultural land;

(2) is adjacent to marginal agricultural land and is either beneficial to resource protection or necessary for efficient recording of the land description;

(3) consists of a drained wetland;

(4) is land that with a windbreak or water quality improvement practice would be beneficial to resource protection;

(5) is land in a sensitive groundwater area;

(6) is riparian land;

(7) is cropland or noncropland adjacent to restored wetlands to the extent of up to four acres of cropland or one acre of noncropland for each acre of wetland restored;

(8) is a woodlot on agricultural land;

(9) is abandoned building site on agricultural land, provided that funds are not used for compensation of the value of the buildings; or

(10) is land ~~on a hillside~~ used for pasture that is marginal in nature.

(1) be owned by the landowner, or a parent or other blood relative of the landowner, for at least one year before the date of application;

(2) be at least five acres in size, except for a drained wetland area, riparian area, windbreak, woodlot, wellhead protection area, or abandoned building site, or be a whole field ~~as defined by the United States Agricultural Stabilization and Conservation Services~~;

(3) not be set aside, enrolled or diverted under another federal or state government program unless enrollment in the ~~conservation~~ reinvest in Minnesota reserve program would provide additional conservation benefits or a longer term of enrollment than under the current federal or state program; and

(4) have been in agricultural crop production for at least two of the last five years before the date of application except drained wetlands, riparian lands, woodlots, abandoned building sites, environmentally sensitive areas, wellhead protection areas, or land on a hillside used for pasture.

(d) ~~In selecting drained wetlands for enrollment in the program, the highest priority must be given to wetlands with a cropping history during the period 1976 to 1985.~~ Land is eligible if the land is a wellhead protection area as defined under section 103I.005, subdivision 24, and has a wellhead protection plan approved by the commissioner of health.

(e) In selecting land for enrollment in the program, highest priority must be given to permanent easements that are consistent with the purposes stated in section 103F.505.

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Sec. 12. Minnesota Statutes 2008, section 103F.515, subdivision 4, is amended to read:

Subd. 4. Nature of property rights acquired. (a) A conservation easement must prohibit:

(1) alteration of wildlife habitat and other natural features, unless specifically approved by the board;

(2) agricultural crop production and livestock grazing, unless specifically approved by the board for ~~wildlife~~ conservation management purposes; and

(3) grazing of livestock except, for agreements entered before the effective date of Laws 1990, chapter 391, grazing of livestock may be allowed only if approved by the board after consultation with the commissioner of natural resources, in the case of severe drought, or a local emergency declared under section 12.29; and

~~(4)~~ (3) spraying with chemicals or mowing, except:

(i) as necessary to comply with noxious weed control laws or;

(ii) for emergency control of pests necessary to protect public health; or

(iii) as approved by the board for conservation management purposes.

(b) A conservation easement is subject to the terms of the agreement provided in subdivision 5.

(c) A conservation easement must allow repairs, improvements, and inspections necessary to maintain public drainage systems provided the easement area is restored to the condition required by the terms of the conservation easement.

(d) Notwithstanding paragraph (a), the board must permit the harvest of native grasses for use in seed production or bioenergy on wellhead protection lands eligible under subdivision 2, paragraph (d).

Sec. 13. [116.201] COAL TAR.

A state agency may not purchase undiluted coal tar sealant. For the purposes of this section, "undiluted coal tar sealant" means a sealant material containing coal tar that has not been mixed with asphalt and is for use on asphalt surfaces, including driveways and parking lots.

EFFECTIVE DATE. This section is effective July 1, 2010.

Sec. 14. Minnesota Statutes 2008, section 116G.15, is amended to read:

116G.15 MISSISSIPPI RIVER CORRIDOR CRITICAL AREA.

Subdivision 1. Establishment; purpose. ~~(a)~~ The federal Mississippi National River and Recreation Area established pursuant to United States Code, title 16, section 460zz-2(k), is designated an area of critical concern in accordance with this chapter. The governor shall review the existing Mississippi River critical area plan and specify any additional standards and guidelines to affected communities in accordance with section 116G.06, subdivision 2, paragraph (b), clauses (3) and (4), needed to insure preservation of the area pending the completion of the federal plan. The purpose of the designation is to:

(1) protect and preserve the Mississippi River and adjacent lands that the legislature finds to be unique, valuable, and dynamic and environmental state and regional resources for the benefit of the health, safety, and welfare of the citizens of the state, region, and nation;

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(2) prevent and mitigate irreversible damages to the natural resources listed under clause (1);

(3) preserve and enhance the natural, aesthetic, cultural, recreational, and historical values of the Mississippi River and its corridor for public use and benefit;

(4) protect and preserve the Mississippi River and its corridor as an essential element in the national, state, and regional transportation, sewer and water, and recreational systems; and

(5) protect and preserve the biological and ecological functions of the Mississippi River and its corridor.

The results of an environmental impact statement prepared under chapter 116D begun before and completed after July 1, 1994, for a proposed project that is located in the Mississippi River critical area north of the United States Army Corps of Engineers Lock and Dam Number One must be submitted in a report to the chairs of the environment and natural resources policy and finance committees of the house of representatives and the senate prior to the issuance of any state or local permits and the authorization for an issuance of any bonds for the project. A report made under this paragraph shall be submitted by the responsible governmental unit that prepared the environmental impact statement, and must list alternatives to the project that are determined by the environmental impact statement to be economically less expensive and environmentally superior to the proposed project and identify any legislative actions that may assist in the implementation of environmentally superior alternatives. This paragraph does not apply to a proposed project to be carried out by the Metropolitan Council or a metropolitan agency as defined in section 473.121.

(b) If the results of an environmental impact statement required to be submitted by paragraph (a) indicate that there is an economically less expensive and environmentally superior alternative, then no member agency of the Environmental Quality Board shall issue a permit for the facility that is the subject of the environmental impact statement, other than an economically less expensive and environmentally superior alternative, nor shall any government bonds be issued for the facility, other than an economically less expensive and environmentally superior alternative, until after the legislature has adjourned its regular session sine die in 1996.

Subd. 2. Administration; rules. (a) The commissioner of natural resources may adopt rules under chapter 14 as necessary for the administration of the Mississippi River corridor critical area program. Duties of the Environmental Quality Council or the Environmental Quality Board referenced in this chapter and related rules and in the governor's executive order number 79-19, published in the State Register on March 12, 1979, related to the Mississippi River corridor critical area shall be the duties of the commissioner. All rules adopted by the board pursuant to these duties remain in effect and shall be enforced until amended or repealed by the commissioner in accordance with law. The commissioner shall work in consultation with the United States Army Corps of Engineers, the National Park Service, the Metropolitan Council, other agencies, local units of government, and other interested parties to ensure that the Mississippi River corridor critical area is managed in a way that:

(1) conserves the scenic, environmental, recreational, mineral, economic, cultural, and historic resources and functions of the river corridor;

(2) maintains the river channel for transportation by providing and maintaining barging and fleeting areas in appropriate locations consistent with the character of the Mississippi River and riverfront;

(3) provides for the continuation and development of a variety of urban uses, including industrial and commercial uses, and residential uses, where appropriate, within the Mississippi River and its corridor;

(4) utilizes certain reaches of the river as a source of water supply and for receiving wastewater effluents and discharges that meet all applicable standards; and

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(5) protects and preserves the biological and ecological functions of the Mississippi River and its corridor.

(b) The Metropolitan Council shall incorporate the standards developed under this section into its planning and shall work with local units of government and the commissioner to ensure the standards are being adopted and implemented appropriately.

Subd. 3. Districts. The commissioner shall establish districts within the Mississippi River corridor critical area. The commissioner must seek to minimize the number of districts within any one municipality and take into account existing ordinances. The commissioner shall consider the following when establishing the districts:

(1) the protection of the major features of the river in existence as of March 12, 1979;

(2) the protection of improvements such as parks, trails, natural areas, recreational areas, and interpretive centers;

(3) the use of the Mississippi River as a source of drinking water;

(4) the protection of resources identified in the Mississippi National River and Recreation Area Comprehensive Management Plan;

(5) the protection of resources identified in comprehensive plans developed by counties, cities, and towns within the Mississippi River corridor critical area;

(6) the intent of the Mississippi River corridor critical area land use districts from the governor's executive order number 79-19, published in the State Register on March 12, 1979; and

(7) identified scenic, geologic, and ecological resources.

Subd. 4. Standards. (a) The commissioner shall establish minimum guidelines and standards for the districts established in subdivision 3. The guidelines and standards for each district shall include the intent of each district, key resources, and features to be protected or enhanced based upon paragraph (b), permitted uses, and dimensional and performance standards for development. The commissioner must take into account existing ordinances when developing the guidelines and standards under this section. The commissioner may provide certain exceptions and criteria for standards, including, but not limited to, exceptions for river access facilities, water supply facilities, storm water facilities, wastewater treatment facilities, and hydropower facilities.

(b) The guidelines and standards must protect or enhance the following key resources and features:

(1) floodplains;

(2) wetlands;

(3) gorges;

(4) areas of confluence with key tributaries;

(5) natural drainage routes;

(6) shorelines and riverbanks;

(7) bluffs;

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(8) steep slopes and very steep slopes;

(9) unstable soils and bedrock;

(10) significant existing vegetative stands, tree canopies, and native plant communities;

(11) scenic views and vistas;

(12) publicly owned parks, trails, and open spaces;

(13) cultural and historic sites and structures; and

(14) water quality.

(c) The commissioner shall establish a map to define bluffs and bluff-related features within the Mississippi River corridor critical area. At the outset of the rulemaking process, the commissioner shall create a preliminary map of all the bluffs and bluff lines within the Mississippi River corridor critical area, based on the guidelines in paragraph (d). The rulemaking process shall provide an opportunity to refine the preliminary bluff map. The commissioner may add to or remove areas of demonstrably unique or atypical conditions that warrant special protection or exemption. At the end of the rulemaking process, the commissioner shall adopt a final bluff map that contains associated features, including bluff lines, bases of bluffs, steep slopes, and very steep slopes.

(d) The following guidelines shall be used by the commissioner to create a preliminary bluff map as part of the rulemaking process:

(1) "bluff face" or "bluff" means the area between the bluff line and the bluff base. A bluff is a high, steep, natural topographic feature such as a broad hill, cliff, or embankment with a slope of 18 percent or greater and a vertical rise of at least ten feet between the bluff base and the bluff line;

(2) "bluff line" means a line delineating the top of a slope connecting the points at which the slope becomes less than 18 percent. More than one bluff line may be encountered proceeding upslope from the river valley;

(3) "bluff base" means a line delineating the bottom of a slope connecting the points at which the slope becomes 18 percent or greater. More than one bluff base may be encountered proceeding landward from the water;

(4) "steep slopes" means 12 percent to 18 percent slopes. Steep slopes are natural topographic features with an average slope of 12 to 18 percent measured over a horizontal distance of 50 feet or more; and

(5) "very steep slopes" means slopes 18 percent or greater. Very steep slopes are natural topographic features with an average slope of 18 percent or greater, measured over a horizontal distance of 50 feet or more.

Subd. 5. Application. The standards established under this section shall be used:

(1) by local units of government when preparing or updating plans or modifying regulations;

(2) by state and regional agencies for permit regulation and in developing plans within their jurisdiction;

(3) by the Metropolitan Council for reviewing plans and regulations; and

(4) by the commissioner when approving plans and regulations, and reviewing development permit applications.

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Subd. 6. Notification; fees. (a) A local unit of government or a regional or state agency shall notify the commissioner of natural resources of all developments in the corridor that require discretionary actions under their rules at least ten days before taking final action on the application. The commissioner may establish exemptions from the notification requirement for certain types of applications. For purposes of this section, a discretionary action includes all actions that require a public hearing, including variances, conditional use permits, and zoning amendments.

(b) The commissioner shall recover costs of reviewing information submitted under paragraph (a). Amounts collected under this paragraph must be credited to an account in the natural resources fund and are appropriated to the commissioner.

Subd. 7. Rules. The commissioner shall adopt rules to ensure compliance with this section. By January 15, 2010, the commissioner shall begin the rulemaking required by this section under chapter 14. Until the rules required under this section take effect, the commissioner shall administer the Mississippi River corridor critical area program in accordance with the governor's executive order number 79-19, published in the State Register on March 12, 1979.

Sec. 15. COAL TAR; NOTIFICATION, INVENTORY, AND BEST MANAGEMENT PRACTICES.

(a) By January 15, 2010, the commissioner of the Pollution Control Agency shall notify state agencies and local units of government of the potential for contamination of constructed storm water ponds and wetlands or natural ponds used for the collection of storm water via constructed conveyances with polycyclic aromatic hydrocarbons from the use of coal tar sealant products. For the purpose of this section, a storm water pond is a treatment pond constructed and operated for water quality treatment, storm water detention, and flood control. Storm water ponds do not include areas of temporary ponding, such as ponds that exist only during a construction project or short-term accumulations of water in road ditches.

(b) By January 15, 2010, the commissioner of the Pollution Control Agency shall establish a schedule and information requirements for state agencies and local units of government regulated under a national pollutant discharge elimination system or state disposal system permit for municipal separate storm sewer systems to report to the commissioner of the Pollution Control Agency on all storm water ponds and other waters defined in paragraph (a) located within their jurisdiction.

(c) The commissioner of the Pollution Control Agency shall develop best management practices for state agencies and local units of government regulated under a national pollutant discharge elimination system or state disposal system permit for municipal separate storm sewer systems treating or cleaning up contaminated sediments in storm water ponds and other waters defined under paragraph (a) and make the best management practices available on the agency's Web site. As part of the development of the best management practices, the commissioner shall:

(1) sample a set of storm water pond sediments in residential, commercial, and industrial areas for polycyclic aromatic hydrocarbons and other contaminants of potential concern;

(2) investigate the feasibility of screening methods to provide more cost-effective analytical results and to identify which kinds of ponds are likely to have the highest concentrations of polycyclic aromatic hydrocarbons; and

(3) develop guidance on testing, treatment, removal, and disposal of polycyclic aromatic hydrocarbon contaminated sediments.

(d) The commissioner of the Pollution Control Agency shall incorporate the requirements for inventory and best management practices specified in paragraphs (b) and (c) into the next permitting cycle for the national pollutant discharge elimination system or state disposal system permit for municipal separate storm sewer systems.

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Sec. 16. ENDOCRINE-DISRUPTOR MONITORING.

(a) The commissioner of the Pollution Control Agency shall establish a network of water monitoring sites in public waters adjacent to wastewater treatment facilities across the state to assess levels of endocrine disrupting compounds, antibiotic compounds, and pharmaceuticals.

(b) Each of the monitoring sites must provide enhanced monitoring of the effluent at the discharge point of the wastewater treatment facility and monitoring of the public waters above and below the discharge point.

(c) The monitoring sites must be located throughout the state, represent a variety of wastewater treatment facility sizes based on the number of gallons of water discharged per day, and represent a variety of waste treatment systems used for primary, secondary, and tertiary disinfecting treatment and management of biosolids.

(d) In establishing the monitoring network, the commissioner of the Pollution Control Agency must consult with the commissioners of health and natural resources, the United States Geological Survey, the Metropolitan Council, local wastewater treatment facility operators, and the Water Resources Center at the University of Minnesota. Consideration may be given to monitoring sites at facilities identified as part of a total maximum daily load study and facilities located on a water body identified for enhanced protection. The initial monitoring network must include at least ten sites.

(e) Monitoring must include, but is not limited to, endocrine-disrupting compounds from natural and synthetic hormones, pharmaceuticals, personal care products, and a range of industrial products and by-products. At a minimum, concentrations of estrone, nonylphenol, bisphenol-A, 17-beta-estradiol, 17-alpha-ethynylestradiol, estriol, and antibacterial triclosan must be monitored. Additional compounds, antibacterial compounds, and pharmaceuticals potentially impacting human health and aquatic communities may be considered for identification and monitoring including, but not limited to, nonylphenol ethoxylates, octylphenol, and octylphenol ethoxylates; the hormones androstenedione, trenbelone, and diethylphthalate; antidepressant medications, including fluoxetine and fluvoxamine; carbamazepine; and triclocarban.

(f) The commissioner of the Pollution Control Agency shall begin the monitoring and testing required under this section no later than November 1, 2009. Information about requirements under this section and the results from the monitoring and testing must be available on the agency's Web site by June 1, 2010. The commissioner shall submit a preliminary report on the results of the monitoring and testing to the chairs of the legislative committees with jurisdiction over environment and natural resources policy and finance by April 15, 2010, and a final report no later than January 15, 2011.

ARTICLE 3

PARKS AND TRAILS FUND

Section 1. PARKS AND TRAILS FUND APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article. The appropriations are from the parks and trails fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2010" and "2011" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal year 2011. "The biennium" is fiscal years 2010 and 2011. Appropriations for the fiscal year ending June 30, 2009, are effective the day following final enactment. All appropriations in this article are onetime only.

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APPROPRIATIONS

Available for the Year

Ending June 30

2010 2011

Sec. 2. NATURAL RESOURCES $10,399,000 $21,257,000

(a) $6,749,000 the first year and $14,807,000 the second year are to:

(1) connect people to the outdoors by providing access, conservation education, and interpretative services with a goal of attracting 350,000 additional visitors to state parks, recreation areas, forest campgrounds, and trails by the end of the biennium, reaching 25 percent of all state parks and trails visitors through education programming, including conducting at least 500 conservation education programs, by:

(i) enhancing marketing and technology to target new audiences and provide new opportunities to engage citizens, including enhancements to the department's Web site, community assistance, and volunteer coordination and enhancement;

(ii) increasing the number of naturalist interns from 18 to 30 each year under the new Minnesota Naturalist Corps established under Minnesota Statutes, section 84.992;

(iii) adding eight new full-time equivalent naturalists to provide expanded programming, with a focus on families and children;

(iv) opening or reopening visitor centers at Lake Bronson, Blue Mounds, St. Croix, and Grand Portage State Parks and expanding visitor center hours at additional high profile parks;

(v) advancing new conservation education delivery methods reaching new and younger audiences with 50 new MP3 audio trail guides, educational touch screen computers, podcasts, and videocasts;

(vi) constructing information centers and kiosks in state parks, including: a pilot project to construct information centers that include self-registration equipment and touch screen displays; electronic information kiosks that include touch screen displays; and information kiosks near campgrounds and day use areas used to display maps, policies, and other information;

(vii) providing interpretive services for state trails, including at least five new kiosks, signage, updating five trail maps, and developing three new resource-oriented brochures;

(viii) producing a new state map integrating state parks, recreation areas, forest campgrounds, trails, and regional park and trail facilities; and

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(ix) enhancing cross-country skiing in at least ten state parks, recreation areas, forest campgrounds, or trails;

(2) accelerate natural resource management, restoration, and protection activities at state parks, including:

(i) restoring at least 700 additional acres of state park land;

(ii) conducting invasive species detection, prevention, and response activities on at least 4,000 acres of state park lands and waters and reestablishing native plants, shrubs, and trees after invasive species removal;

(iii) providing rapid response to terrestrial and aquatic new invasive species detections and infestations on state park lands and waters and state trails;

(iv) conducting prescribed burns on an additional 6,000 acres; and

(v) restoring and managing native prairies and woodlands along at least six percent of the developed miles of state trails, including removing invasive species;

(3) accelerate facility maintenance and rehabilitation by:

(i) upgrading at least three percent of facilities in overnight and day use areas;

(ii) improving access to parks and trails systems for visitors of all ability levels at no fewer than 15 sites each year;

(iii) enhancing the trail surface of at least 100 miles of state trails, resurfacing 20 to 40 miles of state trails, repairing six to ten trail bridges, and replacing two to four bridges; and

(iv) rehabilitating and renewing trails in state parks, recreation areas, or forest campgrounds for hiking, biking, and horseback riding at the rate of at least four percent per year; and

(4) accelerate facility energy conservation by increasing energy conservation and operations, promoting new conservation-based energy sources, reducing energy costs and installing solar energy equipment, including solar thermal energy equipment, as part of the following projects:

(i) the design and installation of sustainable energy features, including the use of solar energy, at a new campground in Split Rock Lighthouse State Park;

(ii) the installation of solar energy equipment to power a new sanitation building and campsites in St. Croix State Park;

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(iii) the installation of solar energy equipment to power sanitation buildings and campsites at the Pine Ridge Campground in Itasca State Park;

(iv) the installation of solar power equipment for educational demonstration projects and to offset the use of electricity at Jay Cooke, Bear Head Lake, Afton, Sibley, Lake Carlos, Glacial Lakes, Maplewood, William O'Brien, Wild River, and Lac Qui Parle State Parks;

(v) the installation of solar energy equipment at the Iron Range Off-Highway Vehicle Recreation Area in Gilbert;

(vi) the installation of solar energy equipment to power a sanitation building and lighting at the Silver Bay Marina;

(vii) the installation of solar energy equipment to power the rest area and visitor center at Grand Portage State Park; and

(viii) the installation of solar energy equipment to power sanitation buildings and campsites at the Lake Shetek State Park and additional solar energy projects if funding is available.

The commissioner shall contract for services with the Minnesota Conservation Corps for restoration, maintenance, and other activities under this paragraph for at least $600,000 the first year and $1,000,000 the second year.

The commissioner shall leverage federal stimulus funding for these purposes to the extent possible.

To the extent possible, any prairie restoration conducted with money appropriated in this section must plant vegetation or sow seed only of ecotypes native to Minnesota, and preferably of the local ecotype, using a high diversity of species originating from as close to the restoration site as possible, and protect existing native prairies from genetic contamination.

(b) $1,000,000 the first year and $2,000,000 the second year are for grants for solar energy projects in metropolitan regional parks and trails that meet the requirements of Minnesota Statutes, section 473.147, or that is currently recognized as meeting the constitutional requirement of being a park or trail of regional or statewide significance, and parks and trails outside the metropolitan area that are currently recognized as meeting the constitutional requirement of being a park or trail of regional or statewide significance. Up to 2-1/2 percent of this appropriation may be used for administering the grants. Of this appropriation, at least $1,000,000 shall be designated for projects utilizing solar thermal technology and equipment. The commissioner shall give priority to projects that:

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(1) would be visible to park or trail visitors and that demonstrate the use of solar energy;

(2) would provide on-site information explaining the installation, its benefits, and the benefits of renewable energy;

(3) would reduce the use of energy from fossil fuels;

(4) incorporate designs that reflect the aesthetics of the installation site; or

(5) provide education to visitors on energy conservation or climate change.

(c) $2,650,000 the first year and $4,450,000 the second year are for grants under Minnesota Statutes, section 85.535, to metropolitan regional parks and trails that meet the requirements of Minnesota Statutes, section 473.147, or that is currently recognized as meeting the constitutional requirement of being a park or trail of regional or statewide significance, and parks and trails outside the metropolitan area that are currently recognized as meeting the constitutional requirement of being a park or trail of regional or statewide significance. Grants under this section must only be used for acquisition, restoration, maintenance, and development. Up to 2-1/2 percent of this appropriation may be used for administering the grants.

(d) The commissioner shall develop a ten-year strategic state parks and trails plan considering traditional funding and the funding available under the Minnesota Constitution, article XI, section 15.

(e) The commissioner, in consultation with the commissioner of the Pollution Control Agency, the Board of Water and Soil Resources, the Outdoor Heritage Council, the Minnesota Board of the Arts, and the Minnesota Historical Society, shall develop a logo to be used in signage required of projects and programs receiving funds from the outdoor heritage fund, clean water fund, parks and trails fund, and arts and cultural heritage fund.

(f) The commissioner shall submit a report on the expenditure and use of money appropriated under this section to the legislature by March 1 of each year. The report must relate the expenditure of funds by the categories established and detail the outcomes in terms of additional use of parks and trails resources, user satisfaction surveys, and other appropriate outcomes.

(g) Grant agreements entered into by the commissioner of natural resources and recipients of money appropriated under this section shall ensure that the funds are used to supplement and not substitute for traditional sources of funding.

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Sec. 3. METROPOLITAN COUNCIL $7,500,000 $14,600,000

(a) $7,500,000 the first year and $14,600,000 the second year are from the parks and trails fund to be distributed as required under Minnesota Statutes, section 85.53, subdivision 3, except that of this amount, $40,000 the first year is for a grant to Hennepin County to plant trees along the Victory Memorial Parkway.

(b) The Metropolitan Council shall submit a report on the expenditure and use of money appropriated under this section to the legislature by March 10 of each year. The report must detail the outcomes in terms of additional use of parks and trails resources, user satisfaction surveys, and other appropriate outcomes.

(c) Grant agreements entered into by the Metropolitan Council and recipients of money appropriated under this section shall ensure that the funds are used to supplement and not substitute for traditional sources of funding.

Sec. 4. LEGISLATURE $51,000 $68,000

(a) $23,000 the first year and $15,000 the second year are for the Legislative Coordinating Commission to fulfill the duties as required under Minnesota Statutes, section 3.303, subdivision 10.

(b) $28,000 the first year and $28,000 the second year are for the legislative auditor to conduct restoration audits under Minnesota Statutes, section 3.971, subdivision 9, and $25,000 the second year is for program and financial audits.

Sec. 5. AVAILABILITY OF APPROPRIATIONS.

Unless otherwise provided, the amounts in this article are available until June 30, 2011, when projects must be completed and final accomplishments reported. Appropriations for 2011 are available for use until June 30, 2012. For acquisition of an interest in real property, the amounts in this section appropriated in fiscal year 2010 are available until June 30, 2012, and the amounts in this section appropriated in fiscal year 2011 are available until June 30, 2013. If a project receives federal funds, the time period of the appropriation is extended to equal the availability of federal funding.

Sec. 6. [84.992] MINNESOTA NATURALIST CORPS.

Subdivision 1. Establishment. The Minnesota Naturalist Corps is established under the direct control and supervision of the commissioner of natural resources.

Subd. 2. Program. The commissioner of natural resources shall develop a program for the Minnesota Naturalist Corps that supports state parks in providing interpretation of the natural and cultural features of state parks in order to enhance visitors' awareness, understanding, and appreciation of those features and encourages the wise and sustainable use of the environment.

Subd. 3. Training and mentoring. The commissioner must develop and implement a training program that adequately prepares Minnesota Naturalist Corps members for the tasks assigned. Each corps member shall be assigned a state park naturalist as a mentor.

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Subd. 4. Uniform patch. Uniforms worn by members of the Minnesota Naturalist Corps must have a patch that includes the name of the Minnesota Naturalist Corps and information that the program is funded by the clean water, land, and legacy amendment to the Minnesota Constitution adopted by the voters in November 2008.

Subd. 5. Eligibility. A person is eligible to enroll in the Minnesota Naturalist Corps if the person:

(1) is a permanent resident of the state;

(2) is a participant in an approved college internship program or has a postsecondary degree in a natural resource or conservation related field; and

(3) has completed at least one year of postsecondary education.

Subd. 6. Corps member status. Minnesota Naturalist Corps members are not eligible for unemployment benefits if their services are excluded under section 268.035, subdivision 20, and are not eligible for other benefits except workers' compensation. The corps members are not employees of the state within the meaning of section 43A.02, subdivision 21.

Subd. 7. Employee displacement. The commissioner must certify that the assignment of Minnesota Naturalist Corps members will not result in the displacement of currently employed workers or workers on seasonal layoff or layoff from a substantially equivalent position, including partial displacement such as reduction in hours of nonovertime work, wages, or other employment benefits. The department may not terminate, lay off, reduce the seasonal hours of, or reduce the working hours of any employee for the purpose of using a corps member with available funds.

Sec. 7. [85.535] PARKS AND TRAILS GRANT PROGRAM.

Subdivision 1. Establishment. The commissioner of natural resources shall administer a program to provide grants from the parks and trails fund to support parks and trails of regional or statewide significance.

Subd. 2. Eligibility. To be eligible for grants under this section, a park or trail must:

(1) be a metropolitan regional park or trail that meets the requirements of section 473.147 or that is currently recognized as meeting the constitutional requirement of being a park or trail of regional or statewide significance; or

(2) be a park or trail outside the metropolitan area, as defined in section 473.121, subdivision 2, that is currently recognized as meeting the constitutional requirement of being a park or trail of regional or statewide significance.

Subd. 3. Priorities. In awarding trails grants under this section, the commissioner shall give priority to trail projects that provide:

(1) connectivity;

(2) enhanced opportunities for commuters; and

(3) enhanced safety.

Subd. 4. Match. Recipients must provide a nonstate cash match of at least 25 percent of the total eligible project costs.

Subd. 5. Rule exemption. The commissioner is not subject to the rulemaking provisions of chapter 14 in implementing this section, and section 14.386 does not apply.

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ARTICLE 4

ARTS AND CULTURAL HERITAGE FUND

Section 1. ARTS AND CULTURAL HERITAGE FUND APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article. The appropriations are from the arts and cultural heritage fund and are available for the fiscal years indicated for each purpose. The figures "2010" and "2011" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal year 2011. "The biennium" is fiscal years 2010 and 2011.

APPROPRIATIONS

Available for the Year

Ending June 30

2010 2011

Sec. 2. ARTS AND CULTURAL HERITAGE

Subdivision 1. Total Appropriation $44,633,000 $44,556,000

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

Subd. 2. Minnesota Board of the Arts

(a) The appropriations in this subdivision are to the Minnesota Board of the Arts from the arts and cultural heritage fund. Grants agreements entered into by the Board of the Arts and other recipients of appropriations in this section shall ensure that these funds are used to supplement and not supplant traditional sources of funding. Appropriations made directly to the Board of the Arts shall supplement, and shall not substitute for traditional sources of funding. Funds appropriated in the first year may be carried over to the second. These are onetime appropriations. No more than 2.5 percent of each appropriation may be used for administration by the Board of the Arts. The Board of the Arts with the assistance of recipients funded under this section shall report on all expenditures made from these funds to the legislature and governor by January 15 of each year. Each grant program established within this appropriation shall be separately administered from other state appropriations for program planning and outcome measurements, but may take into consideration other state resources awarded in the selection of applicants and grant award size. Distinctive goals and measurable outcomes shall be established and reported on.

(b) Regional Arts Boards. $6,000,000 is appropriated on January 1, 2010, and $6,000,000 in 2011 for grants programs to artists, arts programs, programs for the literary arts, and programs for arts education and access; such grants are to be made by

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regional arts boards. Each regional arts council must ensure that a portion of the funds available under this paragraph is used for grants to artists using nontraditional or innovative materials or methods, or for grants to artists dealing with nontraditional subjects.

(c) Statewide Arts Access. $1,000,000 on January 1, 2010, and $1,000,000 in 2011 is appropriated for organizations and programs that provide access to the arts on a statewide basis.

(d) Artists Economic Development Fund. $500,000 in 2010 and $500,000 in 2011 are appropriated to provide individual grants to artists for the purposes of economic subvention or artistic development.

(e) $150,000 in 2010 is appropriated to the Board of the Arts for the creation and conduct of a census of Minnesota artists and artistic organizations; this census must be conducted through a competitive grant to be administered by the arts board and conducted in partnership with the regional arts councils.

Subd. 3. Minnesota Historical Society

(a) The appropriations in this subdivision are to the Minnesota Historical Society from the arts and cultural heritage fund to preserve and enhance access to Minnesota's history and its cultural and historical resources. Grants agreements entered into by the Minnesota Historical Society and other recipients of appropriations in this section shall ensure that these funds are used to supplement and not substitute for traditional sources of funding. Funds directly appropriated to the Minnesota Historical Society shall be used to supplement, and not substitute for, traditional sources of funding. Funds appropriated in the first year may be carried over to the second. These are onetime appropriations. No more than 2.5 percent of each appropriation may be used for administration by the Minnesota Historical Society. The Minnesota Historical Society, with the assistance of recipients funded under this section, shall report on all expenditures made from these funds to the legislature and governor by January 15 of each year.

(b) Minnesota History Educational Network. $2,000,000 in 2010 and $1,000,000 in 2011 are appropriated for programs and projects of service to historical and cultural programs across the state. Among these may be funds for the operation of a Minnesota History Educational Network, to provide educational and programmatic content to schools, teachers, museums, historic sites, and libraries; funds for a history at home project, to provide historical content and materials to persons in their homes, places of work, schools, libraries, and on the Internet; and programs to provide hands on support to historical and cultural organizations, including the purveyance of information and expertise regarding

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collections, preservation, and operation of local historic sites and societies. These programs and projects may be conducted in partnership with either local historical societies, schools, or libraries, as selected by the Minnesota Historical Society.

(c) Statewide Historic and Cultural Grants. (i) $6,000,000 on January 1, 2010, and $6,000,000 in 2011 are appropriated for history programs and projects operated or conducted by or through local, county, regional or other historical or cultural organizations; or for activities to preserve significant historic and cultural resources. Funds are to be distributed through a competitive grants process. The Minnesota Historical Society shall administer these funds using established grants mechanisms, and with assistance from the advisory committee created herein. The Preston grain elevator restoration and recreation project shall be eligible for grants under this program.

Also eligible for a grant under this section are projects previously approved by the Minnesota Historical Society that have had this approved funding refused by a public board or governing body, provided that these projects are now administered by a nonprofit organization.

(ii) The Minnesota Historical Society shall appoint a historic resources advisory committee, with members from each of the eight congressional districts, and representatives of local, county, and statewide historical and cultural organizations and programs, to provide policy and grant making guidance on expenditures of funds from this paragraph. This membership shall include, but is not limited to, members representing the interests of historic preservation, local history, archaeology, archival programs, and other cultural programs related to the history of Minnesota. A significant number of members on this advisory committee should represent local interests. This committee shall seek input from all interested parties, and shall make recommendations for expenditures from these funds to the executive council of the Minnesota Historical Society; all expenditures must meet the requirements of Minnesota Statutes, section 138.01.

(iii) $500,000 in 2010 and $500,000 in 2011 are appropriated to the Minnesota Historical Society for the creation of materials, training, and assistance to local historical societies and others receiving grants under this paragraph. These funds may not be used to hire permanent staff.

(d) Collections. $250,000 in 2010 is appropriated to the Minnesota Historical Society for the purchase, acquisition, storage, and restoration of Minnesota's historical and cultural artifacts. These funds may be carried over until expended. None of these funds may be used for administration.

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(e) $2,000,000 in 2010 is appropriated from the arts and cultural heritage fund to the Minnesota Historical Society for HELP projects under Minnesota Statutes, section 138.0375, subdivision 3.

(f) $150,000 in 2010 is appropriated to the Minnesota Historical Society for a competitive grant to be issued by the society for analysis of historical programs in the state. The analysis shall determine where public collections, museums, programs, and services relating to historical and cultural heritage exist; the depth of the collection or program as it relates to the geographic, topic focus, and time frames covered; and where such services do not exist. The analysis shall advise the state as to the best strategies to use existing financial resources to improve the delivery of history education and historical resources throughout Minnesota. The Minnesota Historical Society shall cooperate with the grant recipient, and shall provide full access to data and materials needed to complete this study. The study shall be reported to the Legislative Coordinating Commission by December 1, 2009.

(g) $2,000,000 on January 1, 2010, and $500,000 on January 1, 2011, are appropriated to the Minnesota Historical Society for an exhibit on the regional, local, and cultural diversity of Minnesota's history and cultural heritage. These funds are available until expended. These funds are for the creation of both traveling exhibits to be made available to local historical and cultural organizations and an exhibit to be housed at the Minnesota History Center. The Minnesota Historical Society shall raise funds from private sources to augment this appropriation, with a goal of $1,500,000 in private funds to be raised. This is not a match requirement, but the Minnesota Historical Society shall certify that a good faith effort has been made.

Subd. 4. Statewide Survey of Historical and Archaeological Sites

$500,000 in 2010 and $500,000 in 2011 are appropriated to the Department of Administration, for a contract to be let on a competitive basis to conduct a general statewide survey of Minnesota's sites of historical, archaeological, and cultural significance. Results of this survey must be published in a searchable form, available to the public on a cost-free basis. The Minnesota Historical Society, the Office of the State Archaeologist, and the Board of Indian Affairs shall each appoint a representative to an oversight board, to select a contractor and direct the conduct of this survey. The oversight board shall consult with the Minnesota Departments of Transportation and Natural Resources. Funds appropriated for this purpose do not cancel and may be carried over from one year to the next.

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Subd. 5. Programs of Artistic, Educational, Historic, or Cultural Significance

(a) Funds in this subdivision are appropriated to the commissioner of the Department of Administration for grants to the named organizations for the purposes specified in this subdivision. Grants made to public television or radio organizations are subject to Minnesota Statutes, section 129D.18, and are not subject to conditions in this paragraph.

(b) Grant agreements entered into by the commissioner and recipients of appropriations in this subdivision must ensure that money appropriated in this subdivision is used to supplement and not substitute for traditional sources of funding. No more than 2.5 percent of any grant may be used for administration. The Department of Administration may use up to one percent of appropriated funds for administration. These are onetime appropriations. A cultural grants advisory board may be established by the Department of Administration to provide advice and assistance in the making of grants under this subdivision. The board, if appointed, shall consist of seven members, to be appointed by the commissioner. One member shall represent public radio and television, one shall represent Minnesota zoos, one shall represent the Minnesota Center for the Humanities, and the remaining four shall be appointed by the commissioner to represent a diverse set of cultural interests. All recipients of funds under this subdivision shall report to the legislature by January 15 of each year on uses of those funds.

(c) Public Television. $2,000,000 on January 1, 2010, and $5,000,000 on January 1, 2011, are appropriated to public television, to the fund created under Minnesota Statutes, section 129D.18, for the development of educational materials, programs, and publicly available programming on the artistic, historical, and cultural heritage of the state and people of Minnesota. Acknowledgment of the funding sources must be included in all materials produced in this grant. None of these funds may be used for normal operations or infrastructure.

(d) Public Television and Radio; Documentary. $500,000 in 2010 and $500,000 in 2011 are appropriated, half each, to Minnesota public television and public radio organizations for the separate creation of radio and television documentaries regarding the uses and results of Minnesota's dedicated funding for outdoor resources, clean water, trails, arts, and cultural heritage. These documentaries shall be conducted according to the professional standards of these organizations, and shall be independent of and separate from any state control over content.

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(e) Minnesota Public Radio. $2,000,000 on January 1, 2010, and $3,000,000 on January 1, 2011, are appropriated to public radio for the development of educational materials, programs, and publicly available programming on the artistic, historical, and cultural heritage of the state and people of Minnesota. None of these funds may be used for normal operations or infrastructure.

(f) Association of Minnesota Public Educational Radio Stations. $1,000,000 in 2010 and $2,000,000 in 2011 are appropriated to the Association of Minnesota Public Educational Radio Stations for the development of educational materials, programs, and publicly available programming on the artistic, historical, and cultural heritage of the state and people of Minnesota. None of these funds may be used for normal operations or infrastructure.

(g) Civics Education. $1,000,000 in 2010 and $1,000,000 in 2011 are appropriated to the Minnesota Center for the Humanities for grants to Kids Voting Minnesota, Learning Law and Democracy Foundation, and YMCA Youth in Government to conduct civics education programs for the civic and cultural development of Minnesota youth.

(h) Children's Museums. $500,000 in 2010 and $500,000 in 2011 are appropriated for grants to Minnesota's museums for children, for exhibits and programming on the artistic, historical, and cultural heritage of the state and people of Minnesota. None of these funds may be used for normal operations or infrastructure. Half of these funds are for a children's museum in Duluth, and the other half for a children's museum in St. Paul.

(i) Minnesota Science Museum. $500,000 in 2010 and $500,000 in 2011 are appropriated for the operation of and programmatic development of the Minnesota Science Museum, for exhibits and programming on the artistic, historical, and cultural heritage of the state and people of Minnesota. None of these funds may be used for normal operations or infrastructure. Funds shall be matched by the Science Museum at a ratio of one to one.

(j) Minnesota Digital Library. $500,000 in 2010 and $500,000 in 2011 are appropriated for the Minnesota digital library project, operated by the Minitex system, to preserve, digitize, and share Minnesota images, documents, and historic materials.

(k) Minnesota Center for the Humanities. $500,000 in 2010 and $500,000 in 2011 are appropriated to the Minnesota Center for the Humanities for programmatic development.

$500,000 in 2010 and $500,000 in 2011 are appropriated to the Minnesota Center for the Humanities for grants to museums and organizations celebrating the ethnic identities of Minnesotans. The

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Minnesota Center for the Humanities shall develop a written plan for the competitive issuance of these grants, and shall submit that plan for review and approval by the Department of Administration.

(l) Zoos. $2,000,000 in 2010 and $2,000,000 in 2011 are appropriated for the programmatic development of Minnesota's zoos. Three-quarters of this fund in any year shall be reserved in equal portions each for the Minnesota Zoo, the Como Zoo, and the Duluth Zoo. The remainder may be apportioned through a competitive grants process or may be allocated by the commissioner to zoos that are accredited by the Association of Zoos and Aquariums or that demonstrate to the commissioner a plan for working toward that accreditation during the biennium ending June 30, 2011.

(m) Councils of Color. $125,000 in 2010 and $125,000 in 2011 are for the Council on Asian-Pacific Minnesotans, for community events and to celebrate and preserve the culture of Asian-Pacific Minnesotans. $125,000 in 2010 and $125,000 in 2011 are for the Council on Black Minnesotans for community events, technical projects, and an affirmative action baseline study. $125,000 in 2010 and $125,000 in 2011 are for the Indian Affairs Council for the preservation of Indian Cultural sites and the burial and handling of remains. $125,000 in 2010 and $125,000 in 2011 are to the Council on Affairs of Chicano/Latino people for community events and initiatives that preserve the culture of Latinos in Minnesota and for research on community needs.

(n) Film and TV Board. $50,000 is appropriated to the Film and TV Board for a grant to plan for future uses of a revolving loan fund or other financial mechanism to stabilize future film rebates and job creation. This appropriation may also be used for film festival planning.

Subd. 6. Minnesota State Capitol

The Department of Administration, the Capitol Area Architecture and Planning Board, and the Minnesota Historical Society shall consider and report to the legislature on possible uses of funds created under the Minnesota Constitution, article XI, section 15, for the restoration, renovation, and repair of the State Capitol.

Sec. 3. DEPARTMENT OF EDUCATION.

Subdivision 1. Arts education $2,000,000 $2,000,000

(a) This appropriation is for grants to school districts to provide materials or resources to teachers, students, and parents to promote achievement of K-12 academic standards in the arts. The commissioner must ensure these grants are distributed equitably among districts in all regions of the state. No more than 2.5 percent of grants under this section may be used for administration.

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(b) The commissioner may award a grant under this subdivision only if a district demonstrates that the money will supplement traditional sources of funding and will not be used as a substitute.

(c) An applicant for a grant under this subdivision must state the outcomes to be achieved with the grant money, and must report to the commissioner within 90 days after the grant funds have been spent on achievement of the proposed outcomes.

(d) Of these funds, $150,000 in 2010 is appropriated to the commissioner for the creation and conduct of a census of public school-based arts education offerings during the school day and in after-school noncompetitive activities, and of arts education opportunities for persons of all ages through community education and in nonprofit community-based programs.

Subd. 2. Arts access 4,000,000 4,000,000

(a) This appropriation is for grants to provide access to arts and arts education for all ages. The commissioner may award grants to school districts, community education programs, libraries, or to other community organizations. No more than 2.5 percent of any grant may be used by the department for administration. The commissioner must ensure these grants are distributed equitably among all regions of the state. Grants under this subdivision may be used for either or both of these purposes:

(1) to pay attendance fees and travel costs for youth to visit art museums, arts performances, or other arts activities; or

(2) to bring artists to schools, libraries, or other community centers or organizations for teaching, training, or performance purposes.

(b) The commissioner may award a grant under this subdivision only if the recipient demonstrates that the money will supplement traditional sources of funding and will not be used as a substitute.

Subd. 3. Libraries 5,000,000 5,000,000

$5,000,000 in 2010 and $5,000,000 in 2011 are appropriated to the Department of Education for grants allocated using existing formulas under Minnesota Statutes, section 134.355, to the 12 Minnesota Regional Library Systems, to provide educational opportunities in the arts, history, literary arts, and cultural heritage of Minnesota. No more than 2.5 percent of funds may be used for administration by regional library systems. This is a onetime

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appropriation. These funds may be used to sponsor programs provided by regional libraries, or to provide grants to local arts and cultural heritage programs for programs in partnership with regional libraries. None of these funds may be used for maintenance of effort requirements. Counties are not subject to maintenance of effort requirements pertaining to these funds.

Subd. 4. Reporting of outcomes

The commissioner must report to the legislature by January 15, 2010, and January 15, 2011, on grants made for arts education and on grants made for arts access under this section. Each report must include the recipient, the amount, and the purpose of each grant. Each report must also summarize the expected and actual outcomes of the grant funding.

Sec. 4. LEGISLATURE $33,000 $56,000

(a) $33,000 the first year and $21,000 the second year are for the Legislative Coordinating Commission to fulfill the duties as required under Minnesota Statutes, section 3.303, subdivision 10.

(b) $35,000 the second year is for the legislative auditor to conduct program and financial audits.

Sec. 5. INDIAN LANGUAGE PRESERVATION.

(a) $150,000 is appropriated in fiscal year 2010 from the arts and cultural heritage fund to the Indian Affairs Council for the working group on Dakota and Ojibwe Language Revitalization and Preservation created under article 7, section 7. Any balance in fiscal year 2010 is available in fiscal year 2011.

(b) $600,000 in 2010 and $750,000 in 2011 are appropriated jointly to the Department of Education and the Office of Higher Education to issue grants for programs to preserve Native Indian languages and to foster educational programs in Native languages.

Sec. 6. APPROPRIATIONS.

Subdivision 1. Commissioner. The sums indicated in this section are appropriated from the arts and cultural heritage fund to the Indian Affairs Council for the fiscal years designated.

Subd. 2. Dakota and Ojibwe immersion programs. For a grant to the Niigaane Ojibwe Immersion School and the Wicoie Nandagikendan Urban Immersion Project:

$250,000 . . . . . 2010

$250,000 . . . . . 2011

Of this amount, $125,000 each year is available for Niigaane Ojibwe Immersion School and $125,000 each year is available for Wicoie Nandagikendan Urban Immersion Project to:

(1) develop and expand K-12 curriculum;

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(2) provide fluent speakers in the classroom;

(3) develop appropriate testing and evaluation procedures; and

(4) develop community-based training and engagement.

This is a onetime appropriation.

ARTICLE 5

GOVERNANCE

Section 1. [3.3004] PRINCIPLES FOR SPENDING LEGACY FUNDS.

Subdivision 1. Application. The principles in this section are intended to guide the legislature in making appropriations from the dedicated funds created under the Minnesota Constitution, article XI, section 15. To the extend practicable, the Outdoor Heritage Council shall refer to these principles in their planning and project consideration.

Subd. 2. Legal principles. Appropriations from the dedicated funds must meet all requirements of the Minnesota Constitution, article XI, section 15, and all other legal requirements.

Subd. 3. Governance, process, and administrative principles. In making appropriations from the dedicated funds, the legislature must attempt to:

(1) use existing systems, agencies, and entities to distribute funds, rather than create new bureaucracies;

(2) be in accordance with plans for each fund, based on current science and on public engagement, and with outcomes that are achieved in a reasonable amount of time;

(3) develop and use indicators of success and accountability that meet the public's demands for open and transparent processes;

(4) increase outreach and encourage participation in the legislative and grant-making process so that a wider variety of Minnesotans receive funds; and

(5) develop innovative uses of funds that work across traditional boundaries and encourage cooperation among multiple interest groups.

Subd. 4. Outcome principles. In making appropriations from the dedicated funds, the legislature must attempt to:

(1) increase the percentage of Minnesotans who participate in the enjoyment, use, and maintenance of our cultural and outdoor resources;

(2) provide every Minnesotan greater access to arts, history, and cultural activities, arts education opportunities, clean water, including quality drinking water, a fully restored outdoors environment with hunting and fishing opportunities, outdoor recreation, public broadcasting signals, and engagement in Minnesota's traditions and history;

(3) prevent pollution and restore impaired waters;

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(4) strive toward meeting statewide priorities and values, emphasizing geographical and regional fairness within each fund;

(5) give priority to projects that improve the state or a regional economy, creating jobs and leveraging nonstate money; and

(6) communicate through visible identification the direct results of investments made with money from the constitutionally dedicated funds.

Sec. 2. Minnesota Statutes 2008, section 3.303, is amended by adding a subdivision to read:

Subd. 10. Constitutionally dedicated funding accountability. (a) The Legislative Coordinating Commission shall develop and maintain a user-friendly, public-oriented Web site that informs, educates, and demonstrates to the public how the constitutionally dedicated funds in the arts and cultural heritage fund, outdoor heritage fund, clean water fund, parks and trails fund, and environment and natural resources trust fund are being expended to meet the requirements established for each fund in the state constitution. Information provided on the Web site must include, but is not limited to:

(1) information on all project proposals received by the Outdoor Heritage Council and the Legislative-Citizen Commission on Minnesota Resources;

(2) information on all projects receiving funding, including proposed measurable outcomes and the plan for measuring and evaluating the results;

(3) measured outcomes and evaluation of projects as required under sections 85.53, subdivision 2; 97A.056, subdivision 9; 114D.50, subdivision 2; and 129D.17, subdivision 2;

(4) education about the areas and issues the projects address, including, when feasible, maps of where projects have been undertaken;

(5) all frameworks developed for future uses of each fund; and

(6) methods by which members of the public may apply for project funds under any of the constitutionally dedicated funds.

(b) All information for proposed and funded projects, including the proposed measurable outcomes, must be made available on the Web site as soon as practicable. Information on the measured outcomes and evaluation must be posted as soon as it becomes available. The costs of these activities shall be paid out of the arts and cultural heritage fund, outdoor heritage fund, clean water fund, parks and trails fund, and the environment and natural resources trust fund proportionately. For purposes of this section, "measurable outcomes" means outcomes, indicators, or other performance measures that may be quantified or otherwise measured in order to measure the effectiveness of a project or program in meeting its intended goal or purpose.

(c) The Legislative Coordinating Commission shall be responsible for receiving all ten-year plans and 25-year frameworks for each of the constitutionally dedicated funds. To the extent practicable, staff for the commission shall provide assistance and oversight to these planning efforts and shall coordinate public access to hearings and public meetings for all planning efforts.

Sec. 3. [3.358] LEGISLATIVE GUIDE.

A legislative guide shall be created stating principles for the use and expected outcomes of all funds from dedicated sales taxes pursuant to the Minnesota Constitution, article XI, section 15. This guide shall be created jointly by the Cultural and Outdoor Resources Division of the house of representatives, and by the appropriate senate committee as designated by the majority leader of the senate.

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The legislative guide required by this section shall be for the years 2010 to 2015 and shall include the following provisions:

(1) principles by which to guide future expenditures for each fund;

(2) desired outcomes for such expenditures;

(3) a general statement applicable to later years for these funds; and

(4) consideration of financial methods such as revolving loan funds that may be used in future appropriations.

The legislative guide shall be completed by the legislative committees by December 15, 2009, and shall be considered and discussed by all committees with jurisdiction over these funds at public hearings.

To the extent practicable, the legislative guide shall be used to direct future appropriations of the legislature.

Sec. 4. Minnesota Statutes 2008, section 3.971, is amended by adding a subdivision to read:

Subd. 9. Restoration audits. The legislative auditor shall conduct restoration audits on a portion of land restorations funded in whole or in part with state funds, to determine whether the activities and programs funded with state funds, including the outdoor heritage fund, the parks and trails fund, the clean water fund, the environment and natural resources trust fund, and state-issued bonds, are accomplishing their restoration goals. The audit must include a critical analysis of the restoration goals and objectives, scientific evaluation of the results, and the effectiveness of the restorations in meeting applicable restoration requirements. The legislative auditor shall hire or contract with scientists and other appropriate persons to meet this requirement. Restoration audits shall be funded out of the fund that funded the restoration, when possible. For the purposes of this section, a "restoration audit" is a scientific evaluation of an area of land that has been restored in order to determine whether the restoration meets applicable requirements for the restoration.

Sec. 5. Minnesota Statutes 2008, section 85.53, is amended to read:

85.53 PARKS AND TRAILS FUND.

Subdivision 1. Establishment. The parks and trails fund is established in the Minnesota Constitution, article XI, section 15. All money earned by the parks and trails fund must be credited to the fund.

Subd. 2. Expenditures; accountability. (a) A project or program receiving funding from the parks and trails fund must meet or exceed the constitutional requirement to support parks and trails of regional or statewide significance. A project or program receiving funding from the parks and trails fund must include measurable outcomes, as defined in section 3.303, subdivision 10, and a plan for measuring and evaluating the results. A project or program must be consistent with current science when appropriate and incorporate state-of-the-art technology when appropriate.

(b) Funding from the parks and trails fund must be requested and granted for an entire project, even if the project will take multiple years to complete. For the purposes of this requirement, a project that is part of a larger project and that could also be considered a single project is a single project.

(c) Biennially, money from the parks and trails fund shall be expended to balance the benefits across all regions and residents of the state.

(d) All information for funded projects, including the proposed measurable outcomes, must be made available on the Web site required under section 3.303, subdivision 10, as soon as practicable. Information on the measured outcomes and evaluation must be posted as soon as it becomes available.

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(e) Grants funded by the parks and trails fund must be implemented according to section 16B.98. Proposals must specify all organizations, including contact information, that will receive any portion of a grant and specify a process for any regranting envisioned. Priority for grant proposals must be given to proposals involving grants that will be competitively awarded.

(f) A recipient of money from the parks and trails fund must display a sign on lands and capital improvements purchased, restored, or protected with money from the parks and trails fund that includes the logo developed by the commissioner of natural resources to identify it as a project funded with money from the vote of the people of Minnesota on November 4, 2008.

(g) Money from the parks and trails fund may only be spent on projects located in Minnesota.

Subd. 3. Metropolitan area distribution formula. Money appropriated from the parks and trails fund to the Metropolitan Council shall be distributed to implementing agencies, as defined in section 473.351, subdivision 1, paragraph (a), as grants according to the following formula:

(1) 45 percent of the money must be disbursed according to the allocation formula in section 473.351, subdivision 3, to each implementing agency;

(2) 31.5 percent of the money must be distributed based on each implementing agency's relative share of the most recent estimate of the population of the metropolitan area;

(3) 13.5 percent of the money must be distributed based on each implementing agency's relative share of nonlocal visits based on the most recent user visitation survey conducted by the Metropolitan Council; and

(4) ten percent of the money must be distributed as grants to implementing agencies for land acquisition within Metropolitan Council approved regional parks and trails master plan boundaries under the council's park acquisition opportunity grant program. The Metropolitan Council must provide a match of $2 of the council's park bonds for every $3 of state funds for the park acquisition opportunity grant program.

Subd. 4. Data availability. Data collected by the projects funded with money from the parks and trails fund that have value for planning and management of natural resources, emergency preparedness, and infrastructure investments must conform to the enterprise information architecture developed by the Office of Enterprise Technology. Spatial data must conform to geographic information system guidelines and standards outlined in that architecture and adopted by the Minnesota Geographic Data Clearinghouse at the Land Management Information Center. A description of these data that adheres to the Office of Enterprise Technology geographic metadata standards must be submitted to the Land Management Information Center to be made available online through the clearinghouse and the data must be accessible and free to the public unless made private under chapter 13. To the extent practicable, summary data and results of projects and programs funded with money from the parks and trails fund should be readily accessible on the Internet and identified as a parks and trails fund project.

Subd. 5. Special review. A project receiving an appropriation or appropriations from the parks and trails fund totaling $10,000,000 or more in a biennium is subject to the following requirements:

(1) the attorney general must review and approve all contracts and real estate transactions, including conservation easements, and make a determination of whether they are in the best interest of the state and whether they meet all applicable requirements; and

(2) a second appraisal, meeting the state appraisal requirements for land acquisitions under section 84.0272, must be conducted and approved by the commissioner of natural resources for all real estate transactions, including conservation easements.

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Sec. 6. Minnesota Statutes 2008, section 97A.056, subdivision 2, is amended to read:

Subd. 2. ~~Lessard~~ Outdoor Heritage Council. (a) The ~~Lessard~~ Outdoor Heritage Council of 12 members is created in the legislative branch, consisting of:

(1) two public members appointed by the senate Subcommittee on Committees of the Committee on Rules and Administration;

(2) two public members appointed by the speaker of the house;

(3) four public members appointed by the governor;

(4) two members of the senate appointed by the senate Subcommittee on Committees of the Committee on Rules and Administration; and

(5) two members of the house of representatives appointed by the speaker of the house.

(b) Members appointed under paragraph (a) must not be registered lobbyists. In making appointments, the governor, senate Subcommittee on Committees of the Committee on Rules and Administration, and the speaker of the house shall consider geographic balance, gender, age, ethnicity, and varying interests including hunting and fishing. The governor's appointments to the council are subject to the advice and consent of the senate.

(c) Public members appointed under paragraph (a) shall have practical experience or expertise or demonstrated knowledge in the science, policy, or practice of restoring, protecting, and enhancing wetlands, prairies, forests, and habitat for fish, game, and wildlife.

(d) Legislative members appointed under paragraph (a) shall include the chairs of the legislative committees with jurisdiction over environment and natural resources finance or their designee, one member from the minority party of the senate, and one member from the minority party of the house of representatives.

(e) Members serve four-year terms and shall be initially appointed according to the following schedule of terms:

(1) two public members appointed by the governor for a term ending the first Monday in January 2011;

(2) one public member appointed by the senate Subcommittee on Committees of the Committee on Rules and Administration for a term ending the first Monday in January 2011;

(3) one public member appointed by the speaker of the house for a term ending the first Monday in January 2011;

(4) two public members appointed by the governor for a term ending the first Monday in January 2013;

(5) one public member appointed by the senate Subcommittee on Committees of the Committee on Rules and Administration for a term ending the first Monday in January 2013;

(6) one public member appointed by the speaker of the house for a term ending the first Monday in January 2013; and

(7) two members of the senate appointed by the senate Subcommittee on Committees of the Committee on Rules and Administration for a term ending the first Monday in January 2013, and two members of the house of representatives appointed by the speaker of the house for a term ending the first Monday in January 2013.

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(f) Compensation and removal of public members are as provided in section 15.0575. A vacancy on the council may be filled by the appointing authority for the remainder of the unexpired term.

(g) The first meeting of the council shall be convened by the chair of the Legislative Coordinating Commission no later than December 1, 2008. Members shall elect a chair, vice-chair, secretary, and other officers as determined by the council. The chair may convene meetings as necessary to conduct the duties prescribed by this section.

(h) The ~~Department of Natural Resources~~ Legislative Coordinating Commission shall provide administrative support for the council. Up to one percent of the money appropriated from the fund may be used to cover the ~~staffing and related~~ administrative expenses of the ~~department and to cover the compensation and travel~~ council; office expenses; and per diem and expenses of council members pursuant to this subdivision; the staffing and related administrative expenses of the legislative auditor under section 3.971, subdivision 9; and the staffing and related expenses of the Legislative Coordinating Commission under section 3.303, subdivision 10.

Sec. 7. Minnesota Statutes 2008, section 97A.056, subdivision 3, is amended to read:

Subd. 3. Council recommendations. (a) The council shall make recommendations to the legislature on appropriations of money from the outdoor heritage fund that are consistent with the Constitution and state law and that ~~take into consideration~~ will achieve the outcomes of existing natural resource plans, including, but not limited to, the Minnesota Statewide Conservation and Preservation Plan, that directly relate to the restoration, protection, and enhancement of wetlands, prairies, forests, and habitat for fish, game, and wildlife, and that prevent forest fragmentation, encourage forest consolidation, and expand restored native prairie. The council shall submit its initial recommendations to the legislature no later than April 1, 2009. Subsequent recommendations shall be submitted no later than January 15 each year. The council shall present its recommendations to the senate and house of representatives committees with jurisdiction over the environment and natural resources budget by February 15 in odd-numbered years, and within the first four weeks of the legislative session in even-numbered years. The council's budget recommendations to the legislature shall be separate from the Department of Natural Resource's budget recommendations.

(b) To encourage and support local conservation efforts, the council shall establish a conservation partners program. Local, regional, state, or national organizations may apply for matching grants for restoration, protection, and enhancement of wetlands, prairies, forests, and habitat for fish, game, and wildlife, prevention of forest fragmentation, encouragement of forest consolidation, and expansion of restored native prairie.

(c) The council may work with the Clean Water Council to identify projects that are consistent with both the purpose of the outdoor heritage fund and the purpose of the clean water fund.

(d) The council may make recommendations to the Legislative-Citizen Commission on Minnesota Resources on scientific research that will assist in restoring, protecting, and enhancing wetlands, prairies, forests, and habitat for fish, game, and wildlife, preventing forest fragmentation, encouraging forest consolidation, and expanding restored native prairie.

(e) Recommendations of the council, including approval of recommendations for the outdoor heritage fund, require an affirmative vote of at least nine members of the council.

(f) The council may work with the Clean Water Council, the Legislative-Citizen Commission on Minnesota Resources, the Board of Water and Soil Resources, soil and water conservation districts, and experts from Minnesota State Colleges and Universities and the University of Minnesota in developing the council's recommendations.

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(g) The council shall develop and implement a process that ensures that citizens and potential recipients of funds are included throughout the process, including the development and finalization of the council's recommendations. The process must include a fair, equitable, and thorough process for reviewing requests for funding and a clear and easily understood process for ranking projects.

(h) The council shall use the regions of the state based upon the ecological regions and subregions developed by the Department of Natural Resources and establish objectives for each region and subregion to achieve the purposes of the fund outlined in the state constitution.

(i) The council shall develop and submit to the Legislative Coordinating Commission plans for the first ten years of funding, and a framework for 25 years of funding, consistent with statutory and constitutional requirements. The council may use existing plans from other legislative, state, and federal sources, as applicable.

Sec. 8. Minnesota Statutes 2008, section 97A.056, subdivision 6, is amended to read:

Subd. 6. Audit. The ~~council shall select an independent auditor to~~ legislative auditor shall audit the outdoor heritage fund expenditures, including administrative and staffing expenditures, every two years to ensure that the money is spent to restore, protect, and enhance wetlands, prairies, forests, and habitat for fish, game, and wildlife.

Sec. 9. Minnesota Statutes 2008, section 97A.056, subdivision 7, is amended to read:

Subd. 7. Legislative oversight. ~~(a)~~ The senate and house of representatives chairs of the committees with jurisdiction over the environment and natural resources budget shall convene a joint hearing to review the activities and evaluate the effectiveness of the council and ~~evaluate the effectiveness and efficiency of the department's administration and staffing of the council after five years but~~ to receive reports on the council from the legislative auditor no later than June 30, 2014.

(b) By January 15, 2013, a professional outside review authority shall be chosen by the chairs of the house of representatives and senate committees with jurisdiction over environment and natural resources to evaluate the effectiveness and efficiency of the department's administration and staffing of the council. A report shall be submitted to the chairs by January 15, 2014.

Sec. 10. Minnesota Statutes 2008, section 97A.056, is amended by adding a subdivision to read:

Subd. 8. Priorities and expenditure requirements. (a) A project receiving funding from the outdoor heritage fund must meet or exceed the constitutional requirements to restore, protect, and enhance wetlands, prairies, forests, and habitat for fish, game, and wildlife. Priority must be given to projects that meet more than one of these requirements. A project must be consistent with current science when appropriate and incorporate state of the art technology when appropriate. The council may establish funding priorities to direct funding toward the highest priorities. Priority may be given to projects that are time sensitive or have a sense of urgency.

(b) Funding from the outdoor heritage fund must be requested and granted for an entire project, even if the project will take multiple years to complete. For the purposes of this requirement, a project that is part of a larger project and that could also be considered a single project is a single project.

(c) Biennially, money from the outdoor heritage fund shall be expended to balance the benefits across all regions and residents of the state.

(d) Grants funded by the outdoor heritage fund must be implemented according to section 16B.98. Proposals must specify all organizations, including contact information, that will receive any portion of a grant and specify a process for any regranting envisioned. Priority for grant proposals must be given to proposals involving grants that will be competitively awarded.

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(e) Money from the outdoor heritage fund may only be spent on projects located in Minnesota.

Sec. 11. Minnesota Statutes 2008, section 97A.056, is amended by adding a subdivision to read:

Subd. 9. Proposal and project requirements. (a) A request for funding from the outdoor heritage fund shall:

(1) include a list of measurable outcomes, as defined in section 3.303, subdivision 10, and a plan for measuring and evaluating the results;

(2) to the extent practicable, include a list of any lands to be acquired, protected, or restored; and

(3) identify the entity that will hold the title or easement of any lands to be acquired or protected.

(b) Lands acquired by fee with funds from the outdoor heritage fund must be open to the public taking of game and fish during the open season unless otherwise provided by law.

(c) Lands acquired by fee, restored, or protected by easements with money from the outdoor heritage fund should ensure the viability of Minnesota's forests, prairies, wetlands, and habitats by supporting native biological diversity and their ecological complexes and provide protection against invasive species, and must meet one or more of the following criteria:

(1) are identified as an area of biodiversity significance by the county biological survey;

(2) maintain or enhance native plant, fish, or wildlife species designated as endangered or threatened under section 84.0895;

(3) maintain a native ecological community;

(4) possess a unique quality that is of value to the biodiversity of the region;

(5) are adjacent to lands meeting one or more of the requirements under clauses (1) to (4) and that, when restored or protected, enhance those adjacent lands;

(6) are degraded lands that, when restored, would provide or contribute to critical habitat for native plants, fish, and wildlife; or

(7) enhance native plant, fish, or wildlife species.

(d) Lands acquired by fee or easement purchased in whole or in part with money from the outdoor heritage fund must be perpetually protected and have an ecological restoration plan with sufficient funding for implementation. The ecological restoration plan must meet the statutory definitions of restore, protect, and enhance in section 84.02. Consideration should be given to relevant factors that would provide the best chance for long-term success of the restoration. The plan shall:

(1) include the proposed timetable for implementing the restoration, including site preparation, establishment of diverse plant species, maintenance, and additional enhancement to establish the restoration;

(2) identify long-term maintenance and management needs of the restoration and how the maintenance, management, and enhancement will be financed; and

(3) take advantage of the most current science and include innovative techniques to achieve the best restoration.

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(e) To the extent possible, lands restored with money from the outdoor heritage fund must use vegetation only of Minnesota's native ecotypes, using a high diversity of species originating from as close to the restoration site as possible, and must protect existing native prairies from genetic contamination.

(f) Lands purchased, restored, or protected by easements with money from the outdoor heritage fund are not eligible for wetland replacement or mitigation credits.

(g) A recipient of money from the outdoor heritage fund must display a sign on lands purchased, restored, or protected by easements with money from the outdoor heritage fund that identifies it as a project funded with money from the vote of the people of Minnesota on November 4, 2008.

(h) To ensure public accountability for the use of public funds, a recipient of money from the outdoor heritage fund must provide documentation to the council of the selection process used to identify parcels acquired and provide documentation of all related transaction costs, including but not limited to appraisals, legal fees, recording fees, commissions, other similar costs, and donations. This information must be provided for all parties involved in the transaction. The recipient shall also report to the council any difference between the acquisition amount paid to the seller and the state-certified or state-reviewed appraisal. Acquisition data such as appraisals may remain private during negotiations but must ultimately be made public according to chapter 13.

(i) The owner of an interest in real property acquired with money from the outdoor heritage fund may not alter the intended use of the interest in real property or convey any interest in the real property acquired with the appropriation without notifying the council in writing. For the purposes of this section, "interest in real property" includes, but is not limited to, an easement or fee title to property.

(j) A recipient of money from the outdoor heritage fund shall not use the funds to cover any organizational or operational expenses not related to the project being funded.

(k) All information for proposed and funded projects, including the proposed measurable outcomes, must be made available on the Web site required under section 3.303, subdivision 10, as soon as practicable. Information on the measured outcomes and evaluation must be posted as it becomes available.

Sec. 12. Minnesota Statutes 2008, section 97A.056, is amended by adding a subdivision to read:

Subd. 10. Data availability. Data collected by the projects funded with money from the outdoor heritage fund that have value for planning and management of natural resources, emergency preparedness, and infrastructure investments must conform to the enterprise information architecture developed by the Office of Enterprise Technology. Spatial data must conform to geographic information system guidelines and standards outlined in that architecture and adopted by the Minnesota Geographic Data Clearinghouse at the Land Management Information Center. A description of these data that adheres to the Office of Enterprise Technology geographic metadata standards must be submitted to the Land Management Information Center to be made available online through the clearinghouse and the data must be accessible and free to the public unless made private under chapter 13. To the extent practicable, summary data and results of projects funded with money from the outdoor heritage fund should be readily accessible on the Internet and identified as an outdoor heritage fund project.

Sec. 13. Minnesota Statutes 2008, section 97A.056, is amended by adding a subdivision to read:

Subd. 11. Report required. The council shall, by January 15 of each year, submit a report to the governor, the chairs of the house of representatives appropriations and senate finance committees, and the chairs of the house of representatives and senate committees on environment and natural resources and the committees with jurisdiction over the outdoor heritage fund. The report must be available to the public and posted on the Web site required under section 3.303, subdivision 10. The report must include:

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(1) the source and amount of all revenues collected and distributed by the council, including all administrative and other expenses;

(2) a description of the assets and liabilities of the outdoor heritage fund;

(3) any findings or recommendations that are deemed proper to assist the legislature in formulating legislation;

(4) a list of all gifts and donations with a value over $1,000; and

(5) a copy of the most recent audit required under subdivision 6 and any restoration audits required under section 3.971, subdivision 9, completed during the preceding biennium.

Sec. 14. Minnesota Statutes 2008, section 97A.056, is amended by adding a subdivision to read:

Subd. 12. Special review. A project receiving an appropriation or appropriations from the outdoor heritage fund totaling $10,000,000 or more in a biennium is subject to the following requirements:

Sec. 15. Minnesota Statutes 2008, section 114D.50, is amended to read:

114D.50 CLEAN WATER FUND.

Subdivision 1. Establishment. The clean water fund is established in the Minnesota Constitution, article XI, section 15. All money earned by the fund must be credited to the fund.

Subd. 2. Sustainable drinking water account. The sustainable drinking water account is established as an account in the clean water fund.

Subd. 3. Purpose. (a) The clean water fund may be spent only to protect, enhance, and restore water quality in lakes, rivers, and streams, to protect groundwater from degradation, and to protect drinking water sources by:

(1) providing additional grants, loans, and technical assistance to public agencies and others who are participating in the process of testing waters, identifying impaired waters, developing total maximum daily loads, implementing restoration plans for impaired waters, and evaluating the effectiveness of restoration;

(2) supporting additional measures to prevent surface waters from becoming impaired and to improve the quality of waters that are listed as impaired, but do not have an approved total maximum daily load addressing the impairment;

(3) providing additional grants and loans for wastewater and storm water treatment projects through the Public Facilities Authority;

(4) supporting additional measures to prevent the degradation of groundwater in accordance with the groundwater degradation prevention goal under section 103H.001; and

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(5) providing additional funds to state agencies to carry out their responsibilities, including enhanced compliance and enforcement, under this chapter.

(b) Funds from the clean water fund must supplement traditional sources of funding for these purposes and may not be used as a substitute.

Subd. 4. Expenditures; accountability. (a) A project receiving funding from the clean water fund must meet or exceed the constitutional requirements to protect, enhance, and restore water quality in lakes, rivers, and streams and to protect groundwater from degradation. Priority must be given to projects that meet more than one of these requirements. A project receiving funding from the clean water fund shall include measurable outcomes, as defined in section 3.303, subdivision 10, and a plan for measuring and evaluating the results. A project must be consistent with current science when appropriate and incorporate state-of-the-art technology when appropriate.

(b) Biennially, money from the clean water fund shall be expended to balance the benefits across all regions and residents of the state.

(c) All information for proposed and funded projects, including the proposed measurable outcomes, must be made available on the Web site required under section 3.303, subdivision 10, as soon as practicable. Information on the measured outcomes and evaluation must be posted as it becomes available. Information classified as not public under section 13D.05, subdivision 3, paragraph (d), is not required to be placed on the Web site.

(d) Grants funded by the clean water fund must be implemented according to section 16B.98. Proposals must specify all organizations, including contact information, that will receive any portion of a grant and specify a process for any regranting envisioned. Priority for grant proposals must be given to proposals involving grants that will be competitively awarded.

(e) A recipient of money from the clean water fund must display a sign on lands and capital improvements purchased, restored, or protected with money from the clean water fund that identifies it as a project funded with money from the vote of the people of Minnesota on November 4, 2008.

(f) Money from the clean water fund may only be spent on projects located in Minnesota.

Subd. 5. Data availability. Data collected by the projects funded with money from the clean water fund that have value for planning and management of natural resources, emergency preparedness, and infrastructure investments must conform to the enterprise information architecture developed by the Office of Enterprise Technology. Spatial data must conform to geographic information system guidelines and standards outlined in that architecture and adopted by the Minnesota Geographic Data Clearinghouse at the Land Management Information Center. A description of these data that adheres to the Office of Enterprise Technology geographic metadata standards must be submitted to the Land Management Information Center to be made available online through the clearinghouse and the data must be accessible and free to the public unless made private under chapter 13. To the extent practicable, summary data and results of projects funded with money from the clean water fund should be readily accessible on the Internet and identified as a clean water fund project.

Subd. 6. Special review. A project receiving an appropriation or appropriations from the clean water fund totaling $10,000,000 or more in a biennium is subject to the following requirements:

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Sec. 16. Minnesota Statutes 2008, section 116P.05, subdivision 2, is amended to read:

Subd. 2. Duties. (a) The commission shall recommend an annual legislative bill for appropriations from the environment and natural resources trust fund and shall adopt a strategic plan as provided in section 116P.08. Approval of the recommended legislative bill requires an affirmative vote of at least 12 members of the commission.

(b) The commission shall recommend expenditures to the legislature from the state land and water conservation account in the natural resources fund.

(c) It is a condition of acceptance of the appropriations made from the Minnesota environment and natural resources trust fund, and oil overcharge money under section 4.071, subdivision 2, that the agency or entity receiving the appropriation must submit a work program and semiannual progress reports in the form determined by the Legislative-Citizen Commission on Minnesota Resources, and comply with applicable reporting requirements under section 116P.16. The work program and semiannual progress reports must include a list of measurable outcomes and a plan for measuring and evaluating the results. A list of any lands to be restored, or acquired in fee title or through easements, and the entity that will hold the title or easement must be identified in the work program. None of the money provided may be spent unless the commission has approved the pertinent work program.

(d) The peer review panel created under section 116P.08 must also review, comment, and report to the commission on research proposals applying for an appropriation from the oil overcharge money under section 4.071, subdivision 2.

(e) The commission may adopt operating procedures to fulfill its duties under this chapter.

(f) As part of the operating procedures, the commission shall:

(1) ensure that members' expectations are to participate in all meetings related to funding decision recommendations;

(2) recommend adequate funding for increased citizen outreach and communications for trust fund expenditure planning;

(3) allow administrative expenses as part of individual project expenditures based on need;

(4) provide for project outcome evaluation;

(5) keep the grant application, administration, and review process as simple as possible; and

(6) define and emphasize the leveraging of additional sources of money that project proposers should consider when making trust fund proposals.

Sec. 17. Minnesota Statutes 2008, section 129D.17, is amended to read:

129D.17 ARTS AND CULTURAL HERITAGE FUND.

Subdivision 1. Establishment. The arts and cultural heritage fund is established in the Minnesota Constitution, article XI, section 15. All money earned by the fund must be credited to the fund.

Subd. 2. Expenditures; accountability. (a) Funding from the arts and cultural heritage fund may be spent only for arts, arts education, and arts access and to preserve Minnesota's history and cultural heritage. A project or program receiving funding from the arts and cultural heritage fund must include measurable outcomes, as defined in

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section 3.303, subdivision 10, and a plan for measuring and evaluating the results. A project or program must be consistent with current scholarship, or best practices, when appropriate and incorporate state-of-the-art technology when appropriate.

(b) Funding from the arts and cultural heritage fund may be granted for an entire project or for part of a project so long as the recipient provides a description and cost for the entire project and can demonstrate that it has adequate resources to ensure that the entire project will be completed.

(c) Biennially, money from the arts and cultural heritage fund shall be expended to balance the benefits across all regions and residents of the state.

(e) Grants funded by the arts and cultural heritage fund must be implemented according to section 16B.98. Proposals must specify all organizations, including contact information, that will receive any portion of a grant and specify a process for any regranting envisioned. Priority for grant proposals must be given to proposals involving grants that will be competitively awarded.

(f) A recipient of money from the arts and cultural heritage fund must display a sign on capital projects and an acknowledgment in a printed program or other material funded with money from the arts and cultural heritage fund that identifies it as a project funded with money from the vote of the people of Minnesota on November 4, 2008.

(g) All money from the arts and cultural heritage fund must be for projects located in Minnesota.

Subd. 3. Special review. A project receiving an appropriation or appropriations from the arts and cultural heritage fund totaling $10,000,000 or more in a biennium is subject to the following requirements:

(1) the attorney general must review and approve all contracts and real estate transactions and make a determination of whether they are in the best interest of the state and whether they meet all applicable requirements; and

(2) a second appraisal, meeting the state appraisal requirements for land acquisitions, must be conducted.

Sec. 18. STATE AND REGIONAL PARKS AND TRAILS FRAMEWORK.

(a) $250,000 in fiscal year 2010 is appropriated from the parks and trails fund to the commissioner of natural resources for a collaborative project to develop a 25-year framework for the use of the money available in the parks and trails fund under the Minnesota Constitution, article XI, section 15, and other traditional sources of funding. The collaborative project shall consist of a joint effort between representatives of the commissioner of natural resources, the Metropolitan Council and its implementing agencies, the Central Minnesota Regional Parks and Trails Coordinating Board, and regional parks and trails organizations outside the metropolitan area. The members shall prepare a ten-year strategic parks and trails coordination plan and develop a 25-year framework for use of the funding that includes goals and measurable outcomes and includes a vision for Minnesotans of what the state and regional parks will look like in 25 years.

(b) In developing the coordination plan and framework, the members shall utilize a process, including Web site survey tools and regional listening sessions, to be staffed by the commissioner, that ensures that citizens are included in development and finalization of the final plan and framework. The commissioner, council, and board shall provide for input from user groups and local and regional park and trail organizations.

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(1) a proposed definition of "parks and trails of regional significance";

(2) a plan to increase the number of visitors to state and regional parks;

(3) assessment of the need for new or expanded regional outdoor recreation systems to preserve and connect high-quality, diverse natural resources in areas with concentrated and increasing populations;

(4) budgeting for ongoing maintenance;

(5) decommissions;

(6) a plan for trails that takes into account connectivity and the potential for use by commuters;

(7) requirements for local contribution; and

(8) benchmarks, beginning no later than July 1, 2014.

(d) The commissioner shall submit the ten-year plan and 25-year framework in November 15, 2009.

Sec. 19. ARTS AND CULTURAL HERITAGE FRAMEWORK.

(a) By February 1, 2010, a joint subcommittee of the house of representatives and senate committees with jurisdiction over the arts and cultural heritage fund shall conduct public meetings to gather additional public stakeholder input and provide recommendations to their respective bodies for a one-year plan establishing criteria, priorities, and parameters for awarding grants and resources. The joint subcommittee shall select representatives to participate in the collaborative project created under paragraph (b). The Legislative Coordinating Commission may use resources allocated to it under this section to provide the research and analysis necessary for the subcommittee to complete their work.

(b) $250,000 in fiscal year 2010 is appropriated from the arts and cultural heritage fund to the Legislative Coordinating Commission for a collaborative project to develop a ten-year plan and a 25-year framework for the use of the money available in the arts and cultural heritage fund under the Minnesota Constitution, article XI, section 15, and other traditional sources of funding. The collaborative project shall consist of a joint effort between representatives nominated by various listed organizations as follows, and approved by the director: an arts education organization serving youth, an arts education organization serving adults, a civics education organization, the Minnesota Historical Society, local and regional historical organizations, Minnesota Board of the Arts, selected Minnesota zoos, children's museums, and libraries, Minnesota public television and radio, the Minnesota Center for the Humanities, and the Science Museum of Minnesota. The speaker of the house and the senate Subcommittee on Committees of the Committee on Rules and Administration shall each appoint three public members with expertise in the arts and cultural heritage, who have no connection to existing arts and cultural heritage organizations, and who come from diverse areas of the state, to provide public perspective on future frameworks for funding. The commission shall ensure that public hearings are conducted by those creating plans and frameworks under this section. The members shall prepare a ten-year plan and a 25-year framework for use of the funding that includes goals and measurable outcomes and includes a vision for Minnesotans of what arts, history, and cultural heritage will look like in 25 years. The Legislative Coordinating Commission may choose to issue a contract to the University of Minnesota to conduct and coordinate this collaborative project, or may let a competitive grant to another organization for such a contract.

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(c) In developing the coordination plan and framework, the members shall utilize a process, including Web site survey tools and regional listening sessions, to be staffed by the Legislative Coordinating Commission, that ensures that citizens are included in development and finalization of the final plan and framework. The Legislative Coordinating Commission shall provide for input from user groups and local and regional arts and cultural heritage organizations.

(d) The plan and framework must include:

(1) a proposed definition of "arts, history, and cultural heritage";

(2) a plan to increase participation in arts, history, and cultural activities;

(3) plans to enhance services to persons, programs, artists, and communities not traditionally served by existing programs, including plans to develop and change existing program priorities to meet these goals;

(4) a plan for serving areas with limited access to arts, historical, and cultural heritage organizations;

(5) parameters for ongoing budgeting;

(6) requirements for local contribution;

(7) standards for measuring outcomes;

(8) leveraging private and nonstate dollars and examining the economic impact of new and expanded programs;

(9) consideration and feasibility of a revolving loan fund for capital projects; and

(10) consideration of ways to best limit funding to Minnesota-only projects.

(e) The director of the Legislative Coordinating Commission shall submit the ten-year plan and a 25-year framework in a report to the legislature no later than October 1, 2010, and shall submit a preliminary report no later than December 15, 2009.

Sec. 20. COMPREHENSIVE STATEWIDE SUSTAINABLE WATER RESOURCES DETAILED FRAMEWORK.

(a) The University of Minnesota shall develop a comprehensive statewide sustainable water resources detailed framework to protect, conserve, and enhance the quantity and quality of the state's ground and surface waters. The detailed framework shall be a long-range, 25-year detailed framework, with an implementation schedule and associated benchmarks, for policy, research, monitoring, and evaluation in order to achieve sustainable ground and surface water use, including the ecological benefits provided by water resources to humans and fish and wildlife habitat. For the purposes of the detailed framework, water use is sustainable when the use does not harm ecosystems, degrade water quality, or compromise the ability of future generations to meet their own needs.

(b) The detailed framework shall be developed by the University of Minnesota Water Resources Center in cooperation with federal, state, and local government and private nonprofits with expertise in water resources. In developing the detailed framework, the water resources plans of organizations with water resources expertise shall be considered. The detailed framework must include, but is not limited to, identification of infrastructure needs, drinking water, ground and surface waters, storm water, agricultural and industrial needs, the interfaces of climate change, development and land use, and demographics. The detailed framework must identify best practices and methods for determining the effectiveness of those practices for wastewater treatment, drinking water source protection, pollution prevention, conservation, and water valuation.

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(c) The University of Minnesota shall also develop a ten-year plan for sustainable water resources. In developing this plan, the University of Minnesota Water Resources Center shall examine existing plans, as available and appropriate, from the Environmental Quality Board and Clean Water Council.

(d) The University of Minnesota shall submit the detailed framework to the chairs of the legislative committees with jurisdiction over agriculture policy and finance and environment and natural resources policy and finance by January 1, 2011.

(e) It is a condition of acceptance of this appropriation that the University of Minnesota must submit a work plan, a timeline, a budget, and periodic progress reports to the Legislative Coordinating Commission. After review, the work plan, progress reports, and any comments on the plan must be submitted to the house of representatives and senate environment finance and policy committees, and to the Legislative Coordinating Commission.

Sec. 21. LIMITS ON APPROPRIATIONS.

All appropriations from any fund created under the Minnesota Constitution, article XI, section 15, shall be onetime only, for the 2010-2011 biennium, and shall not carry forward past 2011 unless otherwise stated. No appropriations may be carried forward as part of a budget base. The legislature shall reconsider all funding before the beginning of the 2011 legislative session, and shall construct new appropriations without regard to past funding decisions.

ARTICLE 6

MANAGEMENT

Section 1. [84C.021] CONSERVATION EASEMENT PURPOSE STATEMENT.

A conservation easement purchased in whole or in part with state funds appropriated on or after July 1, 2009, must include a statement of the conservation purposes of the easement including the conservation attributes associated with the real property and the benefit to the general public intended to be served by the restriction on uses of the real property subject to the conservation easement.

Sec. 2. [84C.06] LONG-TERM LAND MANAGEMENT ACCOUNT.

Subdivision 1. Account established. A long-term land management account is established in the special revenue fund. The commissioner of finance shall credit to the long-term land management account the contributions required under subdivision 2 and any gifts and donations made to the account. The State Board of Investment shall invest the principle of the account. All earnings on the investment shall accrue to the account. For the purposes of this section, land management includes monitoring and enforcement. The commissioner of finance shall report to the legislature by January 15 of each odd-numbered year on contributions and investment earnings of the account and, effective in 2019, on expenditures from the account. "Monitoring" for purposes of this section means review of actual practices of land management as they occur. "Enforcement" for purposes of this section means actions taken to ensure compliance with laws and stated agreements.

Subd. 2. Contributions required. (a) A holder of a permanent conservation easement purchased in whole or in part with state funds appropriated on or after July 1, 2009, shall contribute the greater of $10,000 or five percent of the appraised value of the land to the long-term land management account established in subdivision 1 within 30 days of purchasing the easement.

(b) A holder of a permanent conservation easement that transfers the conservation easement to the state on or after July 1, 2009, shall contribute the greater of $10,000 or five percent of the appraised value of the land to the long-term land management account established in subdivision 1 within 30 days of transferring the easement unless the contribution requirement has been met by the state.

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(c) The owner of land acquired in fee title purchased in whole or in part with state funds appropriated on or after July 1, 2009, for natural resource purposes, including lands acquired by the commissioner of natural resources and lands acquired to restore, protect, and enhance wetlands, prairies, forests, habitat, water quality, and other natural resources, shall contribute the greater of $10,000 or five percent of the appraised value of the land to the long-term land management account established in subdivision 1 within 30 days of purchasing the land.

(d) The owner of land acquired in fee title purchased in whole or in part with state funds for natural resource purposes, including lands acquired by the commissioner of natural resources or lands acquired to restore, protect, and enhance wetlands, prairies, forests, habitat, water quality, and other natural resources, that transfers land to the state on or after July 1, 2009, shall contribute the greater of $10,000 or five percent of the appraised value of the land to the long-term land management account established in subdivision 1 within 30 days of transferring the land unless the contribution requirement has been met by the state. This paragraph does not apply to a unit of local government for land acquired for park purposes, trails, open space, conservation, and agricultural preservation, if the commissioner of natural resources determines that the governing body of the unit of local government has approved a plan to manage the land for as long as the unit of local government owns the land.

(e) Nothing in this section prohibits a holder of an easement or the owner of land in fee title from accepting gifts or other funds to be used in meeting the contribution requirements of this section or prohibits a contribution from being made on behalf of a holder of an easement or owner of land in fee title to meet the requirements of this section.

(f) For the purposes of this section, "appraised value" is the most recent assessor's estimated market value under section 273.11, subdivision 1, the most recent purchase price, or the most recent appraised value of the land, whichever is greater.

(g) For conservation easements acquired under chapters 103B to 103H, or when federal funds contribute to the purchase of an easement, the state's easement cost as determined by rates established by the Board of Water and Soil Resources, will be the basis for determining the five percent in this section.

Subd. 3. Exemption. The commissioner of natural resources and the Board of Water and Soil Resources may waive the contribution requirement under subdivision 2 for a holder of a conservation easement or owner of land in fee title, upon request, provided the following conditions are met:

(1) for the holder of a conservation easement, the holder must:

(i) demonstrate a history of providing long-term management, monitoring, and enforcement of conservation easements;

(ii) demonstrate the ability to fund long-term management, monitoring, and enforcement of conservation easements; and

(iii) have or soon will set aside funds for the management, monitoring, and enforcement of the conservation easement subject to the requirement under subdivision 2, such as administration of an account similar to the long-term land management account established under this section.

(2) for the owner of land in fee title, the owner must:

(i) demonstrate a history of providing land management in accordance with applicable requirements and natural resource purposes;

(ii) demonstrate the ability to fund the applicable land management requirements and purposes; and

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(iii) have or soon will set aside funds for the management of the land subject to the requirement under subdivision 2, such as administration of an account similar to the long-term land management account established under this section.

Subd. 4. Expenditures. Money appropriated from the long-term land management account must only be spent on the management, monitoring, and enforcement of conservation easements to ensure that the purposes for conservation easements according to section 84C.021 are met and on the management of lands purchased with state funds for natural resource purposes. Funds must be appropriated by law and shall not be appropriated until July 1, 2017.

Sec. 3. Minnesota Statutes 2008, section 477A.12, subdivision 2, is amended to read:

Subd. 2. Procedure. Lands for which payments in lieu are made pursuant to section 97A.061, subdivision 3, and Laws 1973, chapter 567, or lands for which a onetime payment has been made under section 477A.121 shall not be eligible for payments under this section. Each county auditor shall certify to the Department of Natural Resources during July of each year prior to the payment year the number of acres of county-administered other natural resources land within the county. The Department of Natural resources may, in addition to the certification of acreage, require descriptive lists of land so certified. The commissioner of natural resources shall determine and certify to the commissioner of revenue by March 1 of the payment year:

(1) the number of acres and most recent appraised value of acquired natural resources land within each county;

(2) the number of acres of commissioner-administered natural resources land within each county;

(3) the number of acres of county-administered other natural resources land within each county, based on the reports filed by each county auditor with the commissioner of natural resources; and

(4) the number of acres of land utilization project land within each county.

The commissioner of transportation shall determine and certify to the commissioner of revenue by March 1 of the payment year the number of acres of land and the appraised value of the land described in subdivision 1, paragraph (b), but only if it exceeds 500 acres.

The commissioner of revenue shall determine the distributions provided for in this section using the number of acres and appraised values certified by the commissioner of natural resources and the commissioner of transportation by March 1 of the payment year.

Sec. 4. [477A.121] NATURAL RESOURCES LAND ONETIME PAYMENT.

Subdivision 1. Onetime payments. (a) A onetime payment shall be made under this section on any acquired natural resources land purchased with funds from the outdoor heritage fund appropriated on or after July 1, 2009, to the county in which the land is located. The payment is equal to 25 percent of the appraised value of the acquired natural resources land.

(b) Each year, the commissioner of natural resources shall determine the total amount of payments for each county on acquired natural resources lands located in the county that were acquired in the previous calendar year and certify that amount to the commissioner of revenue by March 1.

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Subd. 2. Determination of appraised value. For the purposes of this section, the appraised value of acquired natural resources land is the purchase price. If the acquisition involves a donation, the appraised value of acquired natural resources land is the value determined for the commissioner of natural resources by a licensed appraiser, or the county assessor's estimated market value if the county assessor's estimated market value is less than $100,000 and no appraisal has been done.

Subd. 3. Transfer; source of funds. An amount necessary to make the payments required under this section is annually appropriated to the commissioner of natural resources from the outdoor heritage fund for transfer to the commissioner of revenue. The commissioner of revenue shall make the payments required under this section to the counties at the same time that the first half of aid payments under sections 477A.011 to 477A.014 are made.

Subd. 4. Investment and use of funds. (a) Upon receipt of a onetime payment, the county shall disburse to each town an equivalent percentage of the onetime payment as would have been distributed to the town under section 477A.14 of funds paid under section 477A.12.

(b) The onetime payment remaining after disbursement under paragraph (a) shall be invested and only the interest may be expended, except that the board may approve by unanimous vote the use of principal for authorized purposes when it is determined that the interest payment is insufficient for a required expenditure. The interest or authorized principal may only be used for the purposes under section 97A.061 or 477A.12.

Sec. 5. EFFECTIVE DATE.

(a) Sections 1 to 4 are effective July 1, 2009, except that sections 1 to 4 do not apply to the Board of Water and Soil Resources until September 30, 2010; and

(b) Sections 1 to 4 do not apply to any project or appropriation contained in this act.

ARTICLE 7

MISCELLANEOUS

Section 1. [3.3006] APPLICATION.

The definitions of "enhance," "protect," and "restore" in section 84.02 apply to all funds appropriated and purposes authorized under the clean water fund, parks and trails fund, and outdoor heritage fund.

Sec. 2. Minnesota Statutes 2008, section 84.02, is amended by adding a subdivision to read:

Subd. 4a. Enhance. "Enhance" means to improve in value, quality, and desirability in order to increase the ecological value of the land or water.

Sec. 3. Minnesota Statutes 2008, section 84.02, is amended by adding a subdivision to read:

Subd. 6a. Protect. "Protect" means actions taken to preserve the structure and functions of ecological systems to maintain active and healthy ecosystems and prevent future degradation.

Sec. 4. Minnesota Statutes 2008, section 84.02, is amended by adding a subdivision to read:

Subd. 6b. Restore. "Restore" means renewing degraded, damaged, or destroyed ecosystems through active human intervention to achieve high-quality ecosystems that provide the structure, function, biological diversity, and dynamics of the specific ecosystem.

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Sec. 5. [129D.18] PUBLIC TELEVISION AND RADIO CULTURAL AND HERITAGE PRODUCTION AND ACQUISITION GRANTS.

Subdivision 1. Use of grant funds. Money appropriated from the Minnesota arts and cultural heritage fund may be designated to make grants to public stations, as defined in section 129D.12, subdivision 2, and public educational radio stations. Grants received under this section must be used to create, produce, acquire, or distribute programs that educate, enhance, or promote local, regional, or statewide items of artistic, cultural, or historic significance. Grant funds may be used to cover any expenses associated with the creation, production, acquisition, or distribution of public television or radio programs through broadcast or online, including the creation and distribution of educational materials.

Subd. 2. Administration. Money appropriated under this section must be used by the commissioner of administration to make grants based upon the recommendations of the Minnesota Public Television Association or the Association of Minnesota Public Educational Radio Stations.

Subd. 3. Conditions. (a) A public station or public educational radio station receiving funds appropriated under this section must:

(1) make programs produced with these funds available for broadcast to all other public stations or public educational radio stations eligible to receive grants under this section;

(2) offer free public performance rights for public educational institutions;

(3) archive programs produced with these funds and make the programs available for future use through encore broadcast or other distribution, including online; and

(4) ensure that underwriting credit is given to the Minnesota arts and cultural heritage fund.

(b) Programs produced in partnership with other mission-centered nonprofit organizations may be used by the partnering organization for its own educational or promotional purposes.

Subd. 4. Reporting. A public station or public educational radio station receiving funds appropriated under this section must report annually by August 1 to the commissioner and the chairs of the senate and house of representatives committees and divisions having jurisdiction over arts and cultural heritage policy and budget regarding how the previous year's grant funds were expended. This report must contain specific information regarding the details for each program produced and broadcast, including the cost of production, the number of stations broadcasting the program, estimated viewership or number of listeners, the number of Web site downloads, and other related measures. If the programs produced include educational material, the public station or public educational radio station must report to the commissioner on these efforts.

Sec. 6. [138.0375] HISTORY EDUCATION LEARNING PROGRAM.

Subdivision 1. History education learning program established. The history education learning program (HELP) is established to augment the preservation of historic sites and museums in Minnesota with funding from the arts and cultural heritage fund created by the Minnesota Constitution, article XI, section 15.

Subd. 2. Eligible projects. (a) HELP funding must be for one or more of the following purposes:

(1) code compliance at a historic site or museum, including, but not limited to, health and safety, Americans with Disabilities Act requirements, hazardous material abatement, access improvement, air quality improvement, energy conservation measures, or sustainable energy systems;

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(2) building, grounds, or infrastructure repairs or maintenance necessary to preserve or protect the historic site or museum; or

(3) improvements or modernization for interactive, interpretive, or cultural purposes at a historic site or museum.

(b) Up to 15 percent of an appropriation under this section may be used for design, project management, and administrative costs.

Subd. 3. State-owned or state-operated historic sites and museums. Money appropriated for purposes of this subdivision is for state-owned or state-operated historic sites and museums and must be used for the purposes described in subdivision 2.

Subd. 4. Project priorities; report to legislature. (a) The Minnesota Historical Society shall establish criteria for prioritizing HELP projects.

(b) By January 15 of each year, the Minnesota Historical Society shall submit a prioritization plan to the chairs and ranking minority members of the house of representatives and senate committees and divisions with jurisdiction over arts and cultural heritage finance. The prioritization plan must include, without limitation, a list of the projects that have been paid for during the preceding calendar year with HELP funding, a prioritized list of projects for which HELP funding will be sought during the next six fiscal years, and a summary of the need and estimated costs for each project.

Sec. 7. VOLUNTEER WORKING GROUP ON DAKOTA AND OJIBWE LANGUAGE REVITALIZATION AND PRESERVATION.

Subdivision 1. Establishment. A volunteer working group is established to develop a unified strategy to revitalize and preserve indigenous languages of the 11 federally recognized American Indian tribes in Minnesota. As the federal government recognized through passage of the Esther Martinez Native American Languages Preservation Act of 2006, the revitalization and preservation of American Indian languages is of vital importance to preserving the American Indian culture. There have been recent efforts in Minnesota to develop programs to teach the Dakota and Ojibwe languages to students and to create fluent speakers at both the kindergarten through grade 12 level and at the postsecondary level. The volunteer working group shall, among other duties, inventory these efforts and make recommendations regarding how to further revitalize and preserve Dakota and Ojibwe languages.

Subd. 2. Membership. The executive director of the Minnesota Indian Affairs Council shall invite each of the 11 federally recognized tribes under Minnesota Statutes, section 3.922, subdivision 1, clause (1), to participate by appointing one member of each tribe to the working group. Three additional members shall be appointed by the Indian Affairs Council. Two of these members must represent the American Indian population in the Minneapolis-St. Paul area and one member must represent the American Indian population in Duluth. Other working group members may include, at their discretion, the commissioner of education or the commissioner's appointee, the director of the Office of Higher Education or the director's appointee, the director of the Minnesota Historical Society or the director's appointee, one member of the Board of Teaching, one member of the senate appointed by its Subcommittee on Committees, and one member of the house of representatives appointed by the speaker of the house. The working group may add other members as deemed appropriate by a majority vote of the existing members. The executive director of the Indian Affairs Council must convene the first meeting no later than September 1, 2009. At the first meeting, the members shall elect from amongst themselves a chair and vice chair of the working group.

Subd. 3. Duties. The working group must develop strategies for the 11 federally recognized American Indian tribes and the state to work together to revitalize and preserve the Dakota and Ojibwe languages in Minnesota. The duties of the working group include, but are not limited to:

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(1) creating an inventory of existing programs designed to preserve Dakota and Ojibwe languages in the state, including postsecondary programs, programs in tribal schools, and other schools throughout the state;

(2) creating an inventory of available resources for Dakota and Ojibwe language revitalization and immersion programs, including curriculum, educational materials, and trained teachers;

(3) identifying curriculum needs to train teachers to teach the Dakota and Ojibwe languages in immersion programs and barriers to training teachers to teach the Dakota and Ojibwe language;

(4) identifying classroom curriculum needs for teaching students in Dakota and Ojibwe languages;

(5) determining how the identified curriculum needs should be met;

(6) determining if there is a need for a central repository of resources, and if there is a need, where the repository should be located, how it should be structured, and who should have responsibility for maintaining the repository;

(7) determining what technical assistance the state could offer to further Dakota and Ojibwe language immersion programs;

(8) identifying both existing state and national financial resources available to further Dakota and Ojibwe language revitalization and preservation efforts;

(9) identifying current state and federal law, rules, regulations, and policy that should be repealed, modified, or waived, in order to further Dakota and Ojibwe language immersion programs; and

(10) assessing the level of interest in the community for Dakota and Ojibwe language immersion programs.

Subd. 4. Report. The working group must report its findings and recommendations to the Indian Affairs Council and the committees of the legislature having jurisdiction over early childhood through grade 12 education and higher education by February 15, 2011. The committee expires on February 16, 2011.

EFFECTIVE DATE. This section is effective the day following final enactment.

ARTICLE 8

INVASIVE SPECIES

Section 1. APPROPRIATION; FOREST PROTECTION RESERVE.

$2,000,000 is appropriated in fiscal year 2010 from the outdoor heritage fund to the commissioner of agriculture to identify, prevent, and in consultation with the forest resources council, protect Minnesota forests by rapidly and effectively responding to the threat or presence of plant pests. At the commissioner's discretion, the commissioner may access this appropriation if sufficient resources are not available from state, federal, or other sources or if the commissioner determines that sufficient state, federal, or other resources will not be available to the commissioner in time to effectively prevent the introduction or spread of tree pests and avert environmental or economic harm. Up to $125,000 is available immediately to the commissioner of agriculture to update the state's invasive and exotic tree pest plans by addressing the role of all stakeholders in preventing the introduction or spread of, responding to, and containing outbreaks and in remediation. The commissioner shall work in consultation with the commissioner of natural resources, the Forest Resources Council, and the Forest Protection Task Force and shall report findings and recommendations to the governor and the appropriate legislative committees. The report must include recommendations to ensure that a coordinated and effective response network is in place to protect our forests. The

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commissioner of agriculture may transfer all or part of this appropriation to the commissioner of natural resources and may award grants to local units of government or other entities. Any unencumbered balance does not cancel at the end of fiscal year 2010 and is available in fiscal year 2011.

Sec. 2. STATE EXTERNAL FIREWOOD QUARANTINE.

As authorized under Minnesota Statutes, section 18G.06, the commissioner of agriculture must immediately issue and enforce an emergency state exterior quarantine to prevent the entry of firewood into this state unless the person possessing the firewood demonstrates to the satisfaction of the commissioner or the commissioner's agent that the firewood:

(1) was aged at least two years;

(2) has been heated sufficiently to kill pests and disease; or

(3) is either transported or will be received by a person who has entered into a compliance agreement with the commissioner.

The quarantine may be modified or repealed at the discretion of the commissioner of agriculture, as provided under Minnesota Statutes, section 18G.06, subdivision 6."

Delete the title and insert:

"A bill for an act relating to state government; appropriating money from constitutionally dedicated funds and providing for policy and governance of outdoor heritage, clean water, parks and trails, and arts and cultural heritage purposes; establishing and modifying grants and funding programs; providing for advisory groups; providing appointments; requiring reports; requiring rulemaking; amending Minnesota Statutes 2008, sections 3.303, by adding a subdivision; 3.971, by adding a subdivision; 17.117, subdivision 11a; 18G.11, by adding a subdivision; 84.02, by adding subdivisions; 85.53; 97A.056, subdivisions 2, 3, 6, 7, by adding subdivisions; 103F.515, subdivisions 2, 4; 114D.50; 116G.15; 116P.05, subdivision 2; 129D.17; 477A.12, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 3; 84; 84C; 85; 116; 129D; 138; 477A."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Rules and Legislative Administration.

The report was adopted.

Solberg from the Committee on Ways and Means to which was referred:

H. F. No. 1298, A bill for an act relating to public finance; providing terms and conditions relating to issuance of obligations and financing of public improvements; modifying restrictions on mail elections; providing tax credit and interest subsidy bonds; providing emergency debt certificates; authorizing the issuance of local bonds; authorizing the cities of Chisago City and Lindstrom to establish a joint venture, issue debt for use outside of the jurisdiction, and share revenues; providing for the additional financing of metropolitan area transit and paratransit capital expenditures; authorizing the issuance of certain obligations; authorizing counties to make joint purchases of energy and energy generation projects; authorizing Mountain Iron economic development and Winona County economic authorities to form limited liability companies; eliminating the maximum limit on state agricultural society's bonded debt and the sunset on the authority to issue bonds and modifying its authorized investments of debt service funds; extending sunset for special service and housing improvement districts; modifying authority of municipalities to

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issue bonds for certain postemployment benefits; appropriating money; amending Minnesota Statutes 2008, sections 37.31, subdivisions 1, 7; 37.33, subdivision 3; 37.34; 126C.55, subdivision 4; 204B.46; 275.065, subdivision 6; 360.036, subdivision 2; 366.095, subdivision 1; 373.01, subdivision 3; 373.40, subdivision 1; 373.47, subdivision 1; 373.48, subdivision 1, by adding a subdivision; 383B.117, subdivision 2; 410.32; 412.301; 428A.03, subdivision 1; 428A.08; 428A.09; 428A.10; 428A.101; 428A.21; 446A.086, by adding a subdivision; 469.005, subdivision 1; 469.034, subdivision 2; 469.153, subdivision 2; 471.191, subdivision 1; 473.1293, by adding a subdivision; 473.39, by adding a subdivision; 474A.02, subdivisions 2, 14; 475.51, subdivision 4; 475.52, subdivision 6; 475.58, subdivision 1; 475.67, subdivision 8; Laws 1971, chapter 773, sections 1, subdivision 2, as amended; 4, as amended; Laws 2008, chapter 366, article 6, section 46, subdivisions 1, 2; proposing coding for new law in Minnesota Statutes, chapters 16A; 475; repealing Minnesota Statutes 2008, section 37.31, subdivision 8; Laws 1998, chapter 407, article 8, section 12, subdivision 4.

Reported the same back with the following amendments:

Page 29, delete section 44

Renumber the sections in sequence

With the recommendation that when so amended the bill pass.

The report was adopted.

Lenczewski from the Committee on Taxes to which was referred:

H. F. No. 2367, A bill for an act relating to property taxation; providing a property tax abatement for newly-constructed residential structures in flood-damaged areas; appropriating money.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. TAX ABATEMENT; NEWLY CONSTRUCTED RESIDENTIAL STRUCTURES IN FLOOD-DAMAGED CITIES.

Subdivision 1. Eligibility. (a) A residential structure qualifies for a tax abatement under this section, if:

(1) the structure is located in a city that is eligible to designate a development zone under Minnesota Statutes, section 469.1731;

(2) the structure is located in a county designated as an emergency area under presidential declaration FEMA-3304-EM;

(3) the structure is located on property classified as class 1a, 1b, 2a, 4a, 4b, 4bb, or 4d under Minnesota Statutes, section 273.13;

(4) no part of the structure was in existence prior to January 1, 2009; and

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(5) construction of the structure is commenced prior to December 31, 2010. For the purposes of this clause, construction is deemed to have been commenced if a proper building permit has been issued and the mandatory footing or foundation inspection has been completed.

Subd. 2. Application. Application for the abatement authorized under this section must be filed by January 2 of the year following the year in which construction began. The application must be filed with the assessor of the county in which the property is located on a form prescribed by the commissioner of revenue.

Subd. 3. Tax abated. (a) For a property qualifying under subdivision 1 and classified as either 1a, 1b, 2a, 4b, or 4bb, the tax attributable to (1) $150,000 of market value, or (2) the entire market value of the structure, whichever is less, shall be abated. For a property qualifying under subdivision 1 and classified as class 4a or 4d, the tax attributable to (1) $20,000 of market value per residential unit, or (2) the entire market value of the structure, whichever is less, shall be abated.

(b) The abatement under paragraph (a) shall be in effect for two taxes payable years, corresponding to the two assessment years after construction has begun. The abatement shall not apply to any special assessments that have been levied against the property.

Subd. 4. Reimbursement. By May 1 of each taxes payable year in which an abatement has been authorized under this section, the auditor shall report the amount of taxes abated for each jurisdiction within the county to the commissioner of revenue, on a form prescribed by the commissioner. On or before September 1 of each taxes payable year in which an abatement has been authorized under this section, the commissioner of revenue shall reimburse each local jurisdiction for the amount of taxes abated for the year under this section.

Subd. 5. Appropriation. The amount necessary to make the reimbursements required under this section is annually appropriated to the commissioner of revenue from the general fund.

EFFECTIVE DATE. This section is effective for assessment years 2010 to 2012, for taxes payable in 2011 to 2013."

Delete the title and insert:

"A bill for an act relating to property taxation; providing a property tax abatement for newly constructed residential structures in flood-damaged areas; appropriating money."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. Nos. 108, 696, 927, 1193, 1218 and 1298 were read for the second time.

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INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Davnie introduced:

H. F. No. 2372, A bill for an act relating to the city of Minneapolis; repealing special street light provisions; repealing Laws 1959, chapter 577.

The bill was read for the first time and referred to the Committee on State and Local Government Operations Reform, Technology and Elections.

Brod introduced:

H. F. No. 2373, A bill for an act proposing an amendment to the Minnesota Constitution, article XIII, by adding a section; providing authority to the Minnesota Public Utilities Commission, or its successor, to issue a certificate of need for the construction of a nuclear electric generating plant.

The bill was read for the first time and referred to the Energy Finance and Policy Division.

Olin introduced:

H. F. No. 2374, A bill for an act relating to higher education; establishing a student loan forgiveness program for dentists to increase enrollment in the University of Minnesota School of Dentistry; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 136A.

The bill was read for the first time and referred to the Committee on Finance.

Hayden, Clark and Champion introduced:

H. F. No. 2375, A bill for an act relating to state government; modifying provisions governing observance of Juneteenth; amending Minnesota Statutes 2008, section 10.55.

The bill was read for the first time and referred to the Committee on State and Local Government Operations Reform, Technology and Elections.

Emmer and Buesgens introduced:

H. F. No. 2376, A bill for an act relating to commerce; exempting from federal regulation under the commerce clause of the Constitution of the United States a firearm, a firearm accessory, or ammunition manufactured and retained in Minnesota; proposing coding for new law in Minnesota Statutes, chapter 624.

The bill was read for the first time and referred to the Committee on Public Safety Policy and Oversight.

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There being no objection, the order of business advanced to Motions and Resolutions.

MOTIONS AND RESOLUTIONS

Sertich introduced:

House Concurrent Resolution No. 1, A House concurrent resolution relating to deadlines; deleting the fifth deadline.

The house concurrent resolution was referred to the Committee on Rules and Legislative Administration.

Sertich moved that the House recess subject to the call of the Chair. The motion prevailed.

RECESS

RECONVENED

The House reconvened and was called to order by the Speaker.

Champion was excused between the hours of 11:00 a.m. and 11:30 a.m.

CALENDAR FOR THE DAY

H. F. No. 885 was reported to the House.

Nornes, Westrom and Murdock moved to amend H. F. No. 885, the first engrossment, as follows:

Page 7, after line 25, insert:

"Sec. 9. Minnesota Statutes 2008, section 469.312, subdivision 5, is amended to read:

Subd. 5. Duration limit. (a) The maximum duration of a zone is 12 years. The applicant may request a shorter duration. The commissioner may specify a shorter duration, regardless of the requested duration.

(b) The duration limit under this subdivision and the duration of the zone for purposes of allowance of tax incentives described in section 469.315 is extended by three calendar years for each parcel of property that meets the following requirements:

(1) the qualified business operates an ethanol plant, as defined in section 41A.09, on the site that includes the parcel; and

(2) the business subsidy agreement was executed after April 30, 2006.

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(c) Notwithstanding the 12-year zone limitation, any qualified business that signs a business subsidy agreement, as required under sections 469.310, subdivision 11, and 469.313, before December 31, 2015, is entitled to claim the tax benefits for which it qualifies under section 469.315 for the year in which the business subsidy agreement is signed and ten additional years, if the following requirements are met:

(1) a business closed or ceased its operations during calendar year 2008 or 2009, resulting in the loss of one or more jobs, within the jurisdiction of the local government unit entering the business subsidy agreement; and

(2) the local government designates the qualified business as the replacement for the business that ceased its operations, regardless of whether the qualified business is operating in the same or similar line of business or at the same location. This authority applies only to allow designation of one qualified business as a replacement for a business that closed or ceased operations.

EFFECTIVE DATE. This section is effective the day following final enactment."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Nornes et al amendment and the roll was called. There were 48 yeas and 80 nays as follows:

Those who voted in the affirmative were: