| FILE NUMBER:
H. F. 10, First Special Session
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DATE: June 13, 2001
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| Version: First Engrossment
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STATUS: Rules
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| Authors: Holsten
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| Subject: Environment and Natural Resources
Finance Omnibus Bill
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| Analyst: John Helland, 651-296-5039 Mike Bull, 651-296-8961 Sam Rankin, 651-296-5047
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| This document can be made available in alternative formats upon request. Please call (651) 296-6753 [voice]; or the Minnesota State Relay Service at 1-800-627-3529 [TTY] for assistance. |
This is the funding bill for the agencies and departments that have environmental, natural resources and agricultural responsibilities.
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| 1 | Environment, natural resources, and agriculture appropriations. The general fund dollar amount appropriated is $415,531,000 for the biennium, and the total amount appropriated from all relevant funds is $798,913,000. |
| 2 | Pollution control agency. Appropriations total $104,396,000 for the biennium. |
| Subd. 1. Total appropriation. $52,146,000 in the first year and $52,250,000 in the second. | |
| Subd. 2. Protection of the water. $16,160,000 in the first year and $16,581,000 in the second. | |
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| Subd. 3. Protection of the air. $7,716,000 in the first year and $7,876,000 in the second year. | |
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| Subd. 4. Protection of the land. $10,059,000 in the first year and $10,321,000 in the second year. | |
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| Subd. 5. Integrated environmental programs. $16,120,000 in the first year and $15,248,000 in the second year. | |
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| Subd. 6. Administrative support. $2,091,000 in the first year and $2,224,000 in the second year. | |
| Subd. 7. Deficiency appropriation for FLSA. $500,000 in fiscal year 2001 is from the solid waste fund for back pay owed under the Fair Labor Standards Act. | |
| 3 | Office of environmental assistance. Appropriations total $55,440,000 for the biennium. |
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| 4 | Zoo board. Appropriations total $15,417,000 for the biennium. |
| 5 | Department of natural resources. Appropriations total $472,570,000 for the biennium. Significant riders (with biennium dollar totals) include (pages 9-25): |
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| 6 | Board of water and soil resources (BOWSR). Appropriations total $37,990,000 for the biennium. Riders include (found on pages 25-27): |
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| 7 | Minnesota-Wisconsin boundary area commission. Appropriation totals $393,000 for the biennium. |
| 8 | Science museum. Appropriations total $2,600,000 for the biennium. |
| 9 | Agriculture Riders. |
| Subd. 1. Total appropriation. Appropriates $22,338,000 in FY 2002 and $22,512,000 in FY 2003 to the commissioner of agriculture. | |
| Subd. 2. Protection services. | |
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| Subd. 3. Agricultural marketing and development. | |
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| Subd. 4. Administration and financial assistance. | |
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| 10 | Board of animal health. |
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| 11 | Minnesota horticultural society. |
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| 12 | Agricultural utilization research institute. |
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| 13 | ACRRA fee balance. Exempts the agricultural chemical response and reimbursement account fee schedule from the general requirement that all fees must be approved by the legislature. This will allow the commissioner of agriculture to continue to manage the fee so that the balance in the account remains between $1,000,000 and $5,000,000. |
| 14 | Minnesota resources. Appropriations total $50,272,000 for the biennium, including $34,620,000 from the environmental and natural resources trust fund, and $15,385,000 from the future resources fund. (Pages 33-51) |
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| 15 | Minnesota planning. Provides $75,000 to Minnesota planning for a plan to reorganize state water programs and functions (see section 155). |
| 16 | Fund transfers. Provides, among other things, bridge funding for the PCA. |
| 17 | Dairy products. Clarifies the status of government data relating to financial and production information reported to the commissioner of agriculture under the dairy statutes. |
| 18 | Ethical guidelines for farm advocates. Omits obsolete language concerning the farm advocates program. |
| 19 | Value-added agricultural product processing and marketing grant program. Amends existing language to allow groups wishing to form marketing cooperatives to also be eligible for grants, and equity in the new business can also be held by family farm corporations rather than just by individual farmers. |
| 20 | License for Minnesota grown logo. Removes a late fee for an expired license to use the Minnesota grown logo. |
| 21 | Minnesota certification program. |
| Subd. 1. Establishment. Current statute, adopted by the 2000 legislature, established a pilot program to certify agricultural products as to the authenticity of claims made by their producers. This section is amended so that the "pilot" nature of the program is removed, making it permanent. | |
| Subd. 2. Certification process. Requires that applicants for certification must submit applications to the commissioner of agriculture for review by knowledgeable evaluators from the department, the University, and other agencies. An application may be accepted, denied, or returned to the applicant for more work. Criteria for reviewing the application are outlined. | |
| Subd. 3. Intellectual property. The commissioner is charged with creating a logo and development of promotional resources, including the Internet. | |
| Subd. 4. Certification revocation or suspension; misdemeanor. Establishes grounds for the revocation of certification. | |
| Subd. 5. Minnesota certified account; fees. The Minnesota certified account is set up in the agricultural fund. The commissioner must charge a $100 fee for certification. Additional fees may be charged if other special costs are involved. | |
| Subd. 6. No guarantee or warranty. Certification by the state does not constitute a guarantee or warranty, and the state or other parties cannot be found liable for certification or refusal to certify. | |
| Subd. 7. Expiration. The Minnesota certification program expires June 30, 2007. | |
| 22 | Minnesota Grown; appropriations must be matched by private funds. Expands the definition of "private contributions" to include advertising, listing fees, and sales promotion. |
| 23 | Shared savings loan program. |
| Subd. 1. Establishment. Slightly amends the language creating the shared savings loan program. Greater emphasis is given to increasing energy production by agricultural producers and improving the environment. | |
| Subd. 2. Loan criteria. Loans are to make environmental improvements or enhance farm profitability. The limit on loans is raised from $15,000 to $25,000 for individuals and from $75,000 to $100,000 for joint projects. | |
| Subd. 3. Awarding of loans. Removes the need for a direct cause-effect link between cost savings and the ability to repay a loan. Emphasizes overall farm profitability and environmental benefits. Loan priority will no longer be ranked on the basis of cost savings for each practice. | |
| Subd. 4. Administration; information dissemination. No change in this subdivision. | |
| Subd. 5. Farm manure digester technology. Adds a new subdivision codifying the grant program in a 1998 appropriation for manure digester technology. | |
| 24 | Sustainable agriculture demonstration grants. |
| Subd. 1. Establishment. Broadens the charge for the grant program to include enterprise diversification including new crops and livestock. Drops the provision that energy production be targeted to on-farm use. | |
| Subd. 2. Eligibility. Allows grants for reducing costs or improving marketing opportunities. | |
| Subd. 3. Awarding of grants. Requires that an agricultural marketing specialist now be included on the technical review panel that ranks grant applications. | |
| 25 | Agriculture best management practices loan program. |
| Subd. 1. Purpose. The principal purpose of the program is clearly stated "to reduce environmental pollution." | |
| Subd. 2. Authority. Expands the specific authority and tools available to meet the goals of mitigating adverse environmental impacts. Requires that the program establish a consistent programmatic framework for allocating funds. | |
| Subd. 3. Appropriations. Clarifies the authority of the commissioner to use directly appropriated money for the program in addition to money in the water pollution control revolving fund. | |
| Subd. 4. Definitions. Adds several new definitions and clarifies others, including "applicant," "best management practices," "cost incurred," "project," "rural landowner," and "farmer." A "local lender" may be a traditional lender or a local government unit. | |
| Subd. 5. Use of funds. Assures that funds will be used as required by the contributor of the funds. | |
| Subd. 5a. Agricultural and environmental revolving accounts. Establishes these accounts in the general fund to receive grants and appropriations for the best management practices program. Loans are repaid to the accounts. Money in the accounts is appropriated for purposes of the program. | |
| Subd. 6. Application. Details the local units of government that can apply for the loan funds. These include counties, soil and water conservation districts, and joint power organizations established for soil and water conservation. In some instances a county can designate another group to apply for loan funds. Each geographic area can have only one applicant. | |
| Subd. 6a. Review and ranking of applications. The commissioner is to chair a subcommittee convened to review and rank applications. Criteria are specified for ranking the applications. | |
| Subd. 6b. Allocation amount. The subcommittee reviewing and ranking applications must also determine the amount allocated to each applicant, based on a set of criteria, specified. | |
| Subd. 7. Payments to local lenders. Payments to local lenders must follow program guidelines. | |
| Subd. 8. Allocation agreement. Local units of government must work out an "allocation agreement" with the commissioner. The terms of this agreement will govern duties, obligations, and requirements of each party. | |
| Subd. 9. Allocation recission. The commissioner is obligated to review the annual report provided by each local government that receives an allocation and may initiate recission proceedings if the results are unsatisfactory. | |
| Subd. 9a. Authority and responsibilities of local government units. Details the obligations and responsibilities of a local government that administers the best management practices program in a geographic area. | |
| Subd. 9b. Lender agreement. Allows local lenders to participate in the program so long as they comply with the terms of the lender agreement. Sanctions are provided in case of noncompliance. | |
| Subd. 10. Authority and responsibilities of local lenders. The local lender is required to communicate with the local government concerning each loan. Upon demand by a local government the local lender must withhold all or part of a loan disbursement. | |
| Subd. 11. Loans issued to borrower. Specifies criteria and limits on a loan from a local lender to a borrower. Conservation tillage and individual sewer treatment system project loans are limited to five-year loans. Many other types of project loans are limited to ten years. The local lender must not charge more than three percent interest on the outstanding loan balance. | |
| Subd. 11a. Eligible projects. Projects are eligible if they remediate or mitigate adverse environmental impacts and are included in the allocation agreement with the local government and, if the project is for manure management, that it relates to a facility with less than 1,000 animal units. | |
| Subd. 12. Data privacy. Specified data on local governments, local lenders, and borrowers are private or nonpublic data. | |
| Subd. 13. Establishment of account. Clarifies the role of the public facilities authority in creating the best management practices revolving fund. | |
| Subd. 14. Fees and interest. This subdivision of current language on fees and interest is deleted. | |
| Subd. 15. Commissioner's report. Clarifies the content of the biennial report made by the commissioner to the legislature. | |
| Subd. 16. Liens against property. Revises the priority among recorded liens against property and allows a county to bill amounts owed on the property tax statement. | |
| Subd. 17. Referendum exemption. Clarifies the exemption of these loans from a determination of indebtedness when a local government acting as a local lender under this program. | |
| 26 | Fees for permits for Eurasian wild pigs (Sus scrofa). Fees for Sus Scrofa are to be deposited in the general fund. |
| 27 | Definition; agricultural commodity. For purposes of commodity promotion, cultivated wild rise is included within the definition of commodity. |
| 28 | Definition; first purchaser. Establishes a definition of first purchaser for cultivated wild rice. |
| 29 | Definition; producer. Establishes a definition of producer for cultivated wild rice. |
| 30 | Refund of fees. In the list of producers not eligible for a refund of checkoff fees, the terminology for cultivated wild rice is corrected. Also exempts the checkoff fee for cultivated wild rice that has been assessed a fee by a jurisdiction outside of Minnesota. |
| 31 | Laboratory services account. Clarifies responsibilities of the agricultural laboratory. Assures that the laboratory may provide technical services for a fee to any party in support of food safety. |
| 32 | Livestock dealer. Deletes an erroneous cross reference to frozen food processing plants. |
| 33 | Grain inspection administration; appropriation. Corrects a cross reference. |
| 34 | School pest management coordinator. Establishes a new subdivision of statute defining a school pest management coordinator. |
| 35 | Waste pesticide collection account; appropriation. Transfers this account from the state treasury to the agricultural fund. |
| 36 | Pesticide application in schools. Establishes a new section of statute to specify persons authorized to use pesticides in public schools and creating a registry of school pest management coordinators. |
| 37 | Pesticide application on golf courses. Establishes a new section of statute to specify persons authorized to use pesticides on golf courses. |
| 38 | Payment of corrective action costs. Establishes a timeline for submitting applications for reimbursement for eligible corrective actions. |
| 39 | Reimbursement payments. Regroups reimbursement payment categories under the ACRRA program by pay 90 percent of the first $200,000 (except for the first $1,000). Reimbursement rates above $200,000 remain unchanged. |
| 40 | Reimbursement or payment decisions. Establishes a first-level appeal procedure if a reimbursement request has been denied. A contested case hearing can proceed if the board hearing continues to result in disapproval of requested reimbursement. |
| 41 | Service testing and identification. The agriculture department may collect fees sufficient to recover costs for providing seed purity, germination, and identification tests and deposit the fees in the agricultural fund. |
| 42 | Wholesale produce dealer licenses; appropriation of fees. The registration fee for a wholesale produce dealer license is increased from $50 to $75 and the percentage-of-purchase fee is increased from .025 percent to .045 percent. The maximum annual fee amount is raised from $1,500 to $2,000 per license. Fees and penalties are to be deposited in the agricultural fund. |
| 43 | Application; date of issuance. A new provision allows a new food handler license to be issued up to 14 days before the normal license period, in which case the 14 days are covered by the license. |
| 44 | Delegation to local board of health. Requires that a local government that takes over inspections of retail grocery or convenience stores must charge a fee no higher than proportionate to the actual cost of licensing and inspection services. |
| 45 | Agreements to perform duties of the commissioner. Deletes an erroneous cross reference. |
| 46 | Food handler plan review. The fee for food handler plan reviews must be based on the square footage of the facility. Fees are to be deposited in the food handler review account in the agricultural fund. |
| 47 | Food handler reinspection account; appropriation. The food handler reinspection account is established in the agricultural fund. Reinspection fees get deposited there. |
| 48 | Egg handler fees. The annual fee for an egg handler is increased. The fee is based on the number of cases handled each year. |
| 49 | Equipment. Equipment for handling and storing eggs must be capable of maintaining a temperature of 45 degrees Fahrenheit. |
| 50 | Egg temperature. Eggs held in storage must be maintained at a temperature not exceeding 45 degrees Fahrenheit. |
| 51 | Vehicle temperature. A vehicle used to transport eggs must maintain a temperature not exceeding 45 degrees Fahrenheit. |
| 52 | Uniformity with federal law; shell eggs. Updates the specific reference to federal regulations on the handling of shell eggs that the state of Minnesota adopts by reference, subject to amendment by the commissioner. |
| 53 | Dairy grade rules; manufacturing plant standards. Adopts federal regulations on grading and inspection standards as the Minnesota Rules. |
| 54 | Assessments: inspection services; commercial canneries account. Raises the annual cap on the cannery fee from $3,000 to $6,000. Establishes the commercial canneries account in the agricultural fund. Commercial canneries inspection fees get deposited there. |
| 55 | Federal assistance; meat and poultry inspection. Removes the strict administrative cap of 50 percent of the cost of the state/federal cooperative meat and poultry inspection program. |
| 56 | Milk procurement fee. Establishes a new fee of $0.0071 (71 hundredths of one cent) per hundredweight of milk delivered to any processor in the state. The fee on milk sold outside of the state may be paid either by the producer or by the out-of-state processor. The new fee is deposited in the dairy services account in the agricultural fund. |
| 57 | Penalties. If a producer has caused the contamination of a bulk load of milk by antibiotic residue, the farm must be inspected by a representative of the processing plant and the producer to determine the cause of the contamination. |
| 58 | Approval of dairy plants. A fee is charged for the department's work in approving the construction or alteration of a dairy plant. The fee is $45 per hour of staff time. |
| 59 | Rules. Corrects references to specific federal documents explaining federal dairy regulations. |
| 60 | Laboratory certification. The arrangement for charging fees to laboratories certified by the department is simplified and made more specific. |
| 61 | Farm bulk milk pick-up tankers. Expands the range of milk hauling equipment that must be inspected annually. |
| 62 | Milk for manufacturing; quality standards. Corrects a reference to specific federal dairy regulations. |
| 63 | Minnesota grades; butter. Adopts U.S. grades for butter as Minnesota grades for purposes of the package labeling. |
| 64 | Selected class I dairy products. Corrects an erroneous reference to federal regulations. |
| 65 | Selected class II dairy products. Corrects an erroneous reference to federal regulations. |
| 66 | Beverage inspection account; appropriation. The beverage inspection account is established in the agricultural fund. Beverage inspection fees and fines get deposited there. |
| 67 | Rural finance authority; establishment. Allows the state auditor to designate a staff person to serve on the RFA. |
| 68 | Eligibility for the restructured loan program. Removes a requirement that an applicant for the restructured loan program must have at least a 50 percent debt to asset ratio. |
| 69 | Loan participation. Increases the maximum participation in an agricultural improvement loan from $100,000 to $125,000. |
| 70 | Specifications; agricultural improvement loan program. Removes the provision in current law prohibiting the agricultural improvement loan program from refinancing an existing debt. |
| 71 | Establishment; value-added agricultural product loan program. Allows the option for a loan from this program to be made to a group that already owns and operates an agricultural product processing facility. |
| 72 | Disposition of reimbursement from natural disasters. Requires money received by the commissioner of natural resources as reimbursement for damages, losses, or service costs incurred because of a natural disaster to be deposited in the special revenue fund and appropriated to the commissioner. |
| 73 | Minnesota conservation corps. Changes existing statutory language relating to MCC, including eliminating the "Corps to Career" program. |
| 74 | Snowmobile account clarification. Includes grants for local law enforcement as a purpose in account. |
| 75 | All-terrain vehicle (ATV) safety program. Allows a DNR fee of $15 for persons taking ATV safety and training course. |
| 76 | ATV safety certification. Requires certain elements to obtain ATV safety certificate for ages 12-16. |
| 77 | ATV passengers. Allows a parent or guardian to carry a under the age of 16 passenger on an ATV. |
| 78 | Technical ATV. |
| 79 | Minnesota river trail. Provides for a state trail along the river valley from Big Stone Lake State Park to LeSueur. |
| 80 | Central lakes trail. Provides new state trail in Ottertail, Grant, and Douglas counties, starting in Fergus Falls. |
| 81-87 | Park fees. Requires fee deposit in new state park account in the natural resources fund. |
| 88 | New canoe and boating routes for two rivers. Red River of the North and Long Prairie. |
| 89 | Water recreation. Creates a standing appropriation to DNR from fees and proceeds from activities at state small craft harbors and mooring facilities. |
| 90 | Water skipping. Allows a sanctioned snowmobiler for this purpose, under certain conditions, to practice water skipping legally. |
| 91-100 | Decorative vegetation material. Changes existing statutes on cutting, harvesting, and processing of decorative vegetation material on public and private land. Allows field citations. |
| 101 | Firefighting expenses. Deposits these expenses in the general fund. |
| 102 | Forest landscape reporting. Requires certain landscape region reporting by a certain date, under the Forest Resources Council. |
| 103 | Advisory committee sunset. Sunsets the minerals advisory committee in June 30, 2005. |
| 104 | Wildlife stamps. Permits a continuing design contest for these stamps. |
| 105 | Wildlife citizens subcommittees. Creates them for various fish and wildlife and ecological services activities, and the chairs become a budget oversight committee to assist the DNR. |
| 106 | Pictoral stamps. Authorizes a pictorial turkey or trout and salmon stamp to be sold for $2. |
| 107 | Stamp signature. Makes waterfowl or pheasant stamp valid with signed name. |
| 108-113 | Technical stamp provisions. |
| 114 | Seniors fishing. Requires senior citizens to pay the same fee as others for the opportunity of fishing. |
| 115-116 | Technical stamp provisions. |
| 117 | Agricultural land definition. The definition of agricultural land for trespass purposes is expanded to include planted native or introduced grassland or hay land and land in short rotation woody crops. |
| 118-119 | Technical stamp provisions. |
| 120 | Permit duration for aboveground storage facility. Authorizes agency permits for major aboveground storage facilities to be issued for up to 10 years. |
| 121 | New ISTS technologies. Eliminates new ISTS technologies procedures. |
| 122 | Environmental assistance revolving loan account. Creates an environmental assistance revolving loan account. |
| 123 | Transfer station loan. Extends payback period for transfer station loan to a county, from 12 years to 16 years. |
| 124 | Mixed municipal solid waste processing payment. Requires the director of the office of environmental assistance to pay to a county $5 per ton of mixed municipal solid waste that is generated in the county and processed at a resource recovery facility located in Minnesota. |
| 125 | Use of SCORE grants. Extends use of SCORE grants by counties to allow subsidy for processing waste. |
| 126 | Elimination of waste tire nuisance abatement reference. |
| 127 | Elimination of waste tire nuisance abatement reference. |
| 128 | Dry cleaner environmental response fees. Re-authorizes the collection of these fees. |
| 129 | Petrofund. Eliminates reference to completed Petrofund rulemaking. |
| 130 | Petrofund. Eliminates two categories of costs eligible to be reimbursed under the Petrofund program. |
| 131 | Petrofund. Clarifies when requests for reimbursement may be submitted. |
| 132 | Petrofund. Eliminates existing special categories for Petrofund reimbursement. |
| 133 | Petrofund. Provides Petrofund reimbursement at bulk plant that was located on a railroad right of way. |
| 134 | Petrofund. Makes performance audits of Petrofund corrective actions optional for the Petrofund board. |
| 135 | Petrofund. Allows the Petrofund board to sanction a contractor or consultant that fails to reasonably supervise its employees or representatives to assure compliance with Petrofund law and rules. |
| 136 | Petrofund. Adds new references in Petrofund statutes that will be repealed as of June 30, 2005. |
| 137 | Hazardous waste generator licenses and fees. Specifies that licenses may be issued for a period not to exceed 5 years. Also provides for exemptions. |
| 138 | Chlorofluorocarbon regulations; definitions. Specifies application of definitions. |
| 139 | Agricultural utilization research institute board of directors. Corrects the name of legislative committees which cross-reference membership on the institute. |
| 140 | Land and water conservation funds. |
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| 141 | LCMR land acquisition. |
| 142 | Grain buyers and storage account; fees. Licenses issued after June 30, 2001, are increased. |
| 143 | Warehouse operator or household goods warehouse operator to obtain license. License fees are increased. |
| 144 | E85 fuel; definition. Allows denatured ethanol to be blended with "natural gasoline" to produce E85 fuel. |
| 145 | Technical. |
| 146 | Lottery-in-lieu. Sets lottery-in-lieu funding for natural resources purposes at 87% in 2002 and 2003, and 88.5% in 2004 and afterwards. |
| 147 | Metropolitan landfill contingency action trust fund. Expands potential uses of MLCAT funds to include response costs at certain unpermitted facilities. |
| 148 | Technical. |
| 149 | Conservation law enforcement authority. Specifies the authority for an Indian conservation enforcement authority by the DNR on reservation lands and ceded territory. |
| 150 | Farmer-Lender mediation extension. Extends the farmer-lender mediation program to July 1, 2003. |
| 151 | Sunsets forest resources council on June 30, 2007. |
| 152 | Advisory committee sunset. Sunsets the off-road vehicle advisory committee in the Iron Range area on June 30, 2005. |
| 153 | Technical LCMR project reauthorization. |
| 154 | BWCA land inventory. Extends the University of Minnesota study and report to 2003. |
| 155 | Reorganization of state water programs and functions. Directs the office of strategic and long-range planning to develop and present to the legislature a plan for reorganizing the state's water programs and functions. |
| 156 | Temporary suspension of rule; use of live virus on poultry. Suspends for 17 months a Minnesota rule prohibiting the use of "active or infective agent(s)" so that such a live virus vaccine can be used to combat the avian pneumovirus disease. |
| 157 | Unrefunded gas tax study. Determines the percentage of revenue from fuel tax used on state and county forest roads. |
| 158 | McQuade small craft harbor findings and acquisition. |
| 159 | Sunken log moratorium. Requires the DNR to suspend recovery of sunken logs authorized last year and cancel all existing leases that were issued. |
| 160 | Report by finance commissioner. Requires the commissioner of finance to identify and report on inactive special revenue funds. |
| 161 | Refund of certain dairy fines. To the extent that a civil fine levied and collected under the 1999 version of Minnesota Statutes, section 32.21, paragraph (d), [dealing with the presence of drug residues in raw milk] is in excess of a fine that could have been levied after amendments made by the legislature in 2000, the commissioner of agriculture must forgive (or reimburse) the excess amount to the producer. |
| 162 | Repealers. Repeals certain statutes and rules relating to: |
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