HF 752

1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to state government; appropriating money for 
  1.3             agricultural and rural development purposes; 
  1.4             establishing and modifying certain programs; providing 
  1.5             for regulation of certain activities and practices; 
  1.6             providing for accounts, assessments, and fees; 
  1.7             amending Minnesota Statutes 2002, sections 17.451; 
  1.8             17.452, subdivisions 8, 10, 11, 12, 13, by adding 
  1.9             subdivisions; 18.525; 18.78; 18.79, subdivisions 2, 3, 
  1.10            5, 6, 9, 10; 18.81, subdivisions 2, 3; 18.84, 
  1.11            subdivision 3; 18.86; 18B.26, subdivision 3; 21.89, 
  1.12            subdivision 2; 21.90, subdivision 2; 21.901; 28A.08, 
  1.13            subdivision 3; 28A.085, subdivision 1; 28A.09, 
  1.14            subdivision 1; 32.394, subdivisions 8, 8b, 8d; 35.155; 
  1.15            41A.09, subdivisions 1, 2a, 3a, by adding 
  1.16            subdivisions; 116.07, subdivision 7a; 116D.04, 
  1.17            subdivisions 2a, 10, 11, 13; 116O.09, subdivisions 1, 
  1.18            1a, 2, 3, 9, 12, 13, by adding subdivisions; proposing 
  1.19            coding for new law in Minnesota Statutes, chapters 18; 
  1.20            21; repealing Minnesota Statutes 2002, sections 
  1.21            17.110; 18.51; 18.52; 18.53; 18.54; 18.79, 
  1.22            subdivisions 1, 7, 11; 18.85; 41A.09, subdivisions 1a, 
  1.23            5a, 6, 7, 8; Minnesota Rules, part 1510.0281. 
  1.24  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.25  Section 1.  [AGRICULTURE AND RURAL DEVELOPMENT APPROPRIATIONS.] 
  1.26     The sums shown in the columns marked "APPROPRIATIONS" are 
  1.27  appropriated from the general fund, or another named fund, to 
  1.28  the agencies and for the purposes specified in this act, to be 
  1.29  available for the fiscal years indicated for each purpose.  The 
  1.30  figures "2004" and "2005," where used in this act, mean that the 
  1.31  appropriation or appropriations listed under them are available 
  1.32  for the year ending June 30, 2004, or June 30, 2005, 
  1.33  respectively.  The term "the first year" means the year ending 
  1.34  June 30, 2004, and the term "the second year" means the year 
  2.1   ending June 30, 2005. 
  2.2                           SUMMARY BY FUND
  2.3                             2004          2005           TOTAL
  2.4   General            $   45,185,000 $   44,620,000 $   89,805,000
  2.5   Remediation               353,000        353,000        706,000
  2.6   TOTAL              $   45,538,000 $   44,973,000 $   90,511,000
  2.7                                              APPROPRIATIONS 
  2.8                                          Available for the Year 
  2.9                                              Ending June 30 
  2.10                                            2004         2005 
  2.11  Sec. 2.  DEPARTMENT OF AGRICULTURE
  2.12  Subdivision 1.  Total  
  2.13  Appropriation                         42,735,000     42,170,000 
  2.14                Summary by Fund
  2.15  General              42,382,000    41,817,000
  2.16  Remediation             353,000       353,000
  2.17  The amounts that may be spent from this 
  2.18  appropriation for each program are 
  2.19  specified in the following subdivision. 
  2.20  Subd. 2.  Protection Services
  2.21       9,138,000      9,138,000 
  2.22                Summary by Fund
  2.23  General               8,785,000     8,785,000
  2.24  Remediation             353,000       353,000
  2.25  $353,000 the first year and $353,000 
  2.26  the second year are from the 
  2.27  remediation fund for administrative 
  2.28  funding for the voluntary cleanup 
  2.29  program. 
  2.30  Subd. 3.  Agricultural Marketing
  2.31  and Development
  2.32       5,209,000      5,209,000 
  2.33  $71,000 the first year and $71,000 the 
  2.34  second year are for transfer to the 
  2.35  Minnesota grown matching account and 
  2.36  may be used as grants for Minnesota 
  2.37  grown promotion under Minnesota 
  2.38  Statutes, section 17.109.  Grants may 
  2.39  be made for one year.  Notwithstanding 
  2.40  Minnesota Statutes, section 16A.28, the 
  2.41  appropriations encumbered under 
  2.42  contract on or before June 30, 2005, 
  2.43  for Minnesota grown grants in this 
  2.44  subdivision are available until June 
  2.45  30, 2007. 
  2.46  $80,000 the first year and $80,000 the 
  2.47  second year are for grants to farmers 
  2.48  for demonstration projects involving 
  2.49  sustainable agriculture as authorized 
  3.1   in Minnesota Statutes, section 17.116.  
  3.2   Of the amount for grants, up to $20,000 
  3.3   may be used for dissemination of 
  3.4   information about the demonstration 
  3.5   projects.  Notwithstanding Minnesota 
  3.6   Statutes, section 16A.28, the 
  3.7   appropriations encumbered under 
  3.8   contract on or before June 30, 2005, 
  3.9   for sustainable agriculture grants in 
  3.10  this subdivision are available until 
  3.11  June 30, 2007. 
  3.12  The commissioner, in consultation with 
  3.13  farm groups and individuals and 
  3.14  organizations in the education 
  3.15  community, shall identify an 
  3.16  appropriate entity in the private 
  3.17  sector to sponsor, house, and carry on 
  3.18  the staffing and function of the Ag in 
  3.19  the Classroom program.  Once an entity 
  3.20  is identified and arrangements for the 
  3.21  transfer finalized, the commissioner 
  3.22  may release educational and program 
  3.23  materials to the new entity. 
  3.24  Subd. 4.  Ethanol Development 
  3.25      22,962,000     21,428,000 
  3.26  Notwithstanding the annual 
  3.27  appropriation for ethanol producer 
  3.28  payments in Minnesota Statutes, section 
  3.29  41A.09, subdivision 1, the general fund 
  3.30  appropriation for fiscal year 2004 is 
  3.31  $22,692,000 and the appropriation for 
  3.32  fiscal year 2005 is $21,428,000.  
  3.33  Payments from these appropriations for 
  3.34  eligible ethanol production in fiscal 
  3.35  years 2004 and 2005 shall be disbursed 
  3.36  at the rate of $0.13 per gallon, and 
  3.37  the base appropriation amounts in 
  3.38  fiscal years 2006 and 2007 must be 
  3.39  calculated as the projected eligible 
  3.40  production in those years times a 
  3.41  payment rate of $0.13 per gallon.  If 
  3.42  the total amount for which all 
  3.43  producers are eligible in a quarter 
  3.44  exceeds the amount available for 
  3.45  payments, the commissioner shall make 
  3.46  payments on a pro rata basis. 
  3.47  Subd. 5.  Administration and
  3.48  Financial Assistance   
  3.49       5,426,000      6,395,000 
  3.50  $1,005,000 the first year and 
  3.51  $1,005,000 the second year are for 
  3.52  continuation of the dairy development 
  3.53  and profitability enhancement and dairy 
  3.54  business planning grant programs 
  3.55  established under Laws 1997, chapter 
  3.56  216, section 7, subdivision 2 and Laws 
  3.57  2001, First Special Session chapter 2, 
  3.58  section 9, subdivision 2.  The 
  3.59  commissioner may allocate the available 
  3.60  sums among permissible activities, 
  3.61  including efforts to improve the 
  3.62  quality of milk produced in the state, 
  3.63  in the proportions which the 
  3.64  commissioner deems most beneficial to 
  4.1   Minnesota's dairy farmers.  The 
  4.2   commissioner must submit a work plan 
  4.3   detailing plans for expenditures under 
  4.4   this program to the chairs of the house 
  4.5   and senate committees dealing with 
  4.6   agricultural policy and budget on or 
  4.7   before the start of each fiscal year.  
  4.8   If significant changes are made to the 
  4.9   plans in the course of the year, the 
  4.10  commissioner must notify the chairs. 
  4.11  $50,000 the first year and $50,000 the 
  4.12  second year are for the Northern Crops 
  4.13  Institute.  These appropriations may be 
  4.14  spent to purchase equipment. 
  4.15  $19,000 the first year and $19,000 the 
  4.16  second year are for a grant to the 
  4.17  Minnesota livestock breeders 
  4.18  association. 
  4.19  $2,000 the first year and $1,000 the 
  4.20  second year are for family farm 
  4.21  security interest payment adjustments.  
  4.22  If the appropriation for either year is 
  4.23  insufficient, the appropriation for the 
  4.24  other year is available for it.  No new 
  4.25  loans may be approved in fiscal year 
  4.26  2004 or 2005. 
  4.27  $500,000 the first year and $1,535,000 
  4.28  the second year are for the 
  4.29  administration and performance of the 
  4.30  duties under Minnesota Statutes, 
  4.31  section 116O.09.  The commissioner 
  4.32  shall transfer up to $100,000 to the 
  4.33  agricultural utilization and research 
  4.34  institute for its operations between 
  4.35  July 1 and September 30, 2003. 
  4.36  Sec. 3.  BOARD OF ANIMAL
  4.37  HEALTH                                 2,803,000      2,803,000 
  4.38  $400,000 the first year and $400,000 
  4.39  the second year are for the purposes of 
  4.40  cervidae inspections as authorized in 
  4.41  Minnesota Statutes, section 17.452. 
  4.42  Sec. 4.  AGRICULTURAL UTILIZATION
  4.43  RESEARCH INSTITUTE                        -0-             -0-  
  4.44     Sec. 5.  Minnesota Statutes 2002, section 17.451, is 
  4.45  amended to read: 
  4.46     17.451 [DEFINITIONS.] 
  4.47     Subdivision 1.  [APPLICABILITY.] The definitions in this 
  4.48  section apply to this section and section 17.452. 
  4.49     Subd. 1a.  [CERVIDAE.] "Cervidae" means animals that are 
  4.50  members of the family Cervidae and includes, but is not limited 
  4.51  to, white-tailed deer, mule deer, red deer, elk, moose, caribou, 
  4.52  reindeer, and muntjac. 
  4.53     Subd. 2.  [FARMED CERVIDAE.] "Farmed cervidae" means 
  5.1   members of the Cervidae family that are: 
  5.2      (1) raised for the any purpose of producing fiber, meat, or 
  5.3   animal by-products, as pets, or as breeding stock; and 
  5.4      (2) registered in a manner approved by the board of animal 
  5.5   health.  
  5.6      Subd. 3.  [OWNER.] "Owner" means a person who owns or is 
  5.7   responsible for the raising of farmed cervidae. 
  5.8      Subd. 4.  [HERD.] "Herd" means: 
  5.9      (1) all cervidae maintained on common ground for any 
  5.10  purpose; or 
  5.11     (2) all cervidae under common ownership or supervision, 
  5.12  geographically separated, but that have an interchange or 
  5.13  movement of animals without regard to whether the animals are 
  5.14  infected with or exposed to diseases. 
  5.15     Sec. 6.  Minnesota Statutes 2002, section 17.452, 
  5.16  subdivision 8, is amended to read: 
  5.17     Subd. 8.  [SLAUGHTER.] Farmed cervidae must be slaughtered 
  5.18  and inspected in accordance with chapters 31 and 31A or the 
  5.19  United States Department of Agriculture voluntary program for 
  5.20  exotic animals, Code of Federal Regulations, title 9, part 352. 
  5.21     Sec. 7.  Minnesota Statutes 2002, section 17.452, 
  5.22  subdivision 10, is amended to read: 
  5.23     Subd. 10.  [FENCING.] (a) Farmed cervidae must be confined 
  5.24  in a manner designed to prevent escape.  Fencing must meet the 
  5.25  requirements in this subdivision unless an alternative is 
  5.26  specifically approved by the commissioner.  The board of animal 
  5.27  health shall follow the guidelines established by the United 
  5.28  States Department of Agriculture in the program for eradication 
  5.29  of bovine tuberculosis.  Perimeter fencing must be of the 
  5.30  following heights: 
  5.31     (1) for fences constructed before August 1, 1995, for 
  5.32  farmed deer, at least 75 inches; 
  5.33     (2) for fences constructed before August 1, 1995, for 
  5.34  farmed elk, at least 90 inches; and 
  5.35     (3) for fences constructed on or after August 1, 1995, for 
  5.36  all farmed cervidae, at least 96 inches. 
  6.1      (b) The farmed cervidae advisory committee shall establish 
  6.2   guidelines designed to prevent the escape of farmed cervidae and 
  6.3   other appropriate management practices.  All perimeter fences 
  6.4   for farmed cervidae must be at least 96 inches in height and be 
  6.5   constructed and maintained in a way that prevents the escape of 
  6.6   farmed cervidae or entry into the premises by free-roaming 
  6.7   cervidae. 
  6.8      (c) The commissioner of agriculture in consultation with 
  6.9   the commissioner of natural resources shall adopt rules 
  6.10  prescribing fencing criteria for farmed cervidae. 
  6.11     [EFFECTIVE DATE.] This section is effective January 1, 2004.
  6.12     Sec. 8.  Minnesota Statutes 2002, section 17.452, 
  6.13  subdivision 11, is amended to read: 
  6.14     Subd. 11.  [DISEASE INSPECTION CONTROL PROGRAMS.] Farmed 
  6.15  cervidae herds are subject to chapter 35 and the rules of the 
  6.16  board of animal health in the same manner as livestock and 
  6.17  domestic animals, including provisions relating to importation 
  6.18  and transportation. 
  6.19     Sec. 9.  Minnesota Statutes 2002, section 17.452, 
  6.20  subdivision 12, is amended to read: 
  6.21     Subd. 12.  [IDENTIFICATION.] (a) Farmed cervidae must be 
  6.22  identified by United States Department of Agriculture metal ear 
  6.23  tags, electronic implants, or other means of identification 
  6.24  approved by the board of animal health in consultation with the 
  6.25  commissioner of natural resources.  Beginning January 1, 2004, 
  6.26  the identification must be visible to the naked eye during 
  6.27  daylight under normal conditions at a distance of 50 yards.  
  6.28  Newborn or imported animals are required to must be identified 
  6.29  by March 1 of each year before December 31 of the year in which 
  6.30  the animal is born or before movement from the premises, 
  6.31  whichever occurs first.  The board shall authorize discrete 
  6.32  permanent identification for farmed cervidae in public displays 
  6.33  or other forums where visible identification is objectionable. 
  6.34     (b) Identification of farmed cervidae is subject to 
  6.35  sections 35.821 to 35.831. 
  6.36     (c) The board of animal health shall register farmed 
  7.1   cervidae upon request of the owner.  The owner must submit the 
  7.2   registration request on forms provided by the board.  The forms 
  7.3   must include sales receipts or other documentation of the origin 
  7.4   of the cervidae.  The board shall provide copies of the 
  7.5   registration information to the commissioner of natural 
  7.6   resources upon request.  The owner must keep written records of 
  7.7   the acquisition and disposition of registered farmed cervidae. 
  7.8      Sec. 10.  Minnesota Statutes 2002, section 17.452, 
  7.9   subdivision 13, is amended to read: 
  7.10     Subd. 13.  [INSPECTION.] The commissioner of agriculture 
  7.11  and the board of animal health may inspect farmed cervidae, 
  7.12  farmed cervidae facilities, and farmed cervidae records.  The 
  7.13  commissioner of natural resources may inspect farmed cervidae, 
  7.14  farmed cervidae facilities, and farmed cervidae records with 
  7.15  reasonable suspicion that laws protecting native wild animals 
  7.16  have been violated. and must notify the owner must be notified 
  7.17  in writing at the time of the inspection of the reason for the 
  7.18  inspection and informed must inform the owner in writing after 
  7.19  the inspection of whether (1) the cause of the inspection was 
  7.20  unfounded; or (2) there will be an ongoing investigation or 
  7.21  continuing evaluation. 
  7.22     Sec. 11.  Minnesota Statutes 2002, section 17.452, is 
  7.23  amended by adding a subdivision to read: 
  7.24     Subd. 15.  [MANDATORY REGISTRATION.] A person may not 
  7.25  possess live cervidae in Minnesota unless the person is 
  7.26  registered with the board of animal health and meets all the 
  7.27  requirements for farmed cervidae under this section.  Cervidae 
  7.28  possessed in violation of this subdivision may be seized and 
  7.29  destroyed by the commissioner of natural resources. 
  7.30     [EFFECTIVE DATE.] This section is effective January 1, 2004.
  7.31     Sec. 12.  Minnesota Statutes 2002, section 17.452, is 
  7.32  amended by adding a subdivision to read: 
  7.33     Subd. 16.  [MANDATORY SURVEILLANCE FOR CHRONIC WASTING 
  7.34  DISEASE.] (a) An inventory for each farmed cervidae herd must be 
  7.35  verified by an accredited veterinarian and filed with the board 
  7.36  of animal health every 12 months. 
  8.1      (b) Movement of farmed cervidae from any premises to 
  8.2   another location must be reported to the board of animal health 
  8.3   within 14 days of such movement on forms approved by the board 
  8.4   of animal health. 
  8.5      (c) All animals from farmed cervidae herds that are over 16 
  8.6   months of age that die or are slaughtered must be tested for 
  8.7   chronic wasting disease. 
  8.8      [EFFECTIVE DATE.] This section is effective January 1, 2004.
  8.9      Sec. 13.  [18.511] [FEE SCHEDULE.] 
  8.10     Subdivision 1.  [ESTABLISHMENT OF FEES.] The commissioner 
  8.11  shall establish fees sufficient to allow for the administration 
  8.12  and enforcement of this chapter and rules adopted under this 
  8.13  chapter, including the portion of general support costs and 
  8.14  statewide indirect costs of the agency attributable to that 
  8.15  function, with a reserve sufficient for up to six months.  The 
  8.16  commissioner shall review the fee schedule annually in 
  8.17  consultation with the Minnesota nursery and landscape advisory 
  8.18  committee.  For the certificate year beginning January 1, 2004, 
  8.19  the fees are as described in this section. 
  8.20     Subd. 2.  [NURSERY STOCK GROWER CERTIFICATE.] (a) A nursery 
  8.21  stock grower must pay an annual fee based on the area of all 
  8.22  acreage on which nursery stock is grown for certification as 
  8.23  follows: 
  8.24     (1) less than one-half acre, $150; 
  8.25     (2) from one-half acre to two acres, $200; 
  8.26     (3) over two acres up to five acres, $300; 
  8.27     (4) over five acres up to ten acres, $350; 
  8.28     (5) over ten acres up to 20 acres, $500; 
  8.29     (6) over 20 acres up to 40 acres, $650; 
  8.30     (7) over 40 acres up to 50 acres, $800; 
  8.31     (8) over 50 acres up to 200 acres, $1,100; 
  8.32     (9) over 200 acres up to 500 acres, $1,500; and 
  8.33     (10) over 500 acres, $1,500 plus $2 for each additional 
  8.34  acre. 
  8.35     (b) In addition to the fees in paragraph (a), a penalty of 
  8.36  ten percent of the fee due must be charged for each month that 
  9.1   the fee is delinquent for any application for renewal not 
  9.2   received by January 1 of the year following expiration of a 
  9.3   certificate. 
  9.4      Subd. 3.  [NURSERY STOCK DEALER, CERTIFICATE.] (a) A 
  9.5   nursery stock dealer must pay an annual fee based on the 
  9.6   dealer's gross sales of nursery stock per location during the 
  9.7   preceding certificate year.  A certificate applicant operating 
  9.8   for the first time shall pay the minimum fee.  The fees are per 
  9.9   sales location as follows: 
  9.10     (1) gross sales up to $20,000, $150; 
  9.11     (2) gross sales over $20,000 up to $100,000, $175; 
  9.12     (3) gross sales over $100,000 up to $250,000, $300; 
  9.13     (4) gross sales over $250,000 up to $500,000, $425; 
  9.14     (5) gross sales over $500,000 up to $1,000,000, $550; 
  9.15     (6) gross sales over $1,000,000 up to $2,000,000, $675; and 
  9.16     (7) gross sales over $2,000,000, $800. 
  9.17     (b) In addition to the fees in paragraph (a), a penalty of 
  9.18  ten percent of the fee due must be charged for each month that 
  9.19  the fee is delinquent for any application for renewal not 
  9.20  received by January 1 of the year following expiration of a 
  9.21  certificate. 
  9.22     Subd. 4.  [REINSPECTION; ADDITIONAL OR OPTIONAL INSPECTION 
  9.23  FEES.] If a reinspection is required or an additional inspection 
  9.24  is needed or requested, a fee shall be assessed based on mileage 
  9.25  and inspection time as follows: 
  9.26     (1) mileage must be charged at the current United States 
  9.27  Internal Revenue Service reimbursement rate; and 
  9.28     (2) inspection time must be charged at the rate of $50 per 
  9.29  hour, including the driving time to and from the location in 
  9.30  addition to the time spent conducting the inspection. 
  9.31     Sec. 14.  Minnesota Statutes 2002, section 18.525, is 
  9.32  amended to read: 
  9.33     18.525 [EXEMPT NURSERY SALES.] 
  9.34     Subdivision 1.  [NOT-FOR-PROFIT SALES.] An 
  9.35  organization does not need to obtain a nursery stock dealer 
  9.36  certificate before offering or individual may offer for sale 
 10.1   certified nursery stock for sale or distribution if the 
 10.2   organization: 
 10.3      (1) is a and be exempt from the requirement to obtain a 
 10.4   nursery stock dealer certificate if sales are conducted by a 
 10.5   nonprofit charitable, educational, or religious organization; 
 10.6      (2) that: 
 10.7      (1) conducts sales or distributions of certified nursery 
 10.8   stock on 14 or fewer days in a calendar year; and 
 10.9      (3) (2) uses the proceeds from its certified nursery stock 
 10.10  sales or distributions for charitable, educational, or religious 
 10.11  purposes. 
 10.12     The organization must notify the commissioner, prior to any 
 10.13  sales or distributions of certified nursery stock and must 
 10.14  demonstrate to the commissioner, if requested, that such sales 
 10.15  or distributions will be conducted on 14 or fewer days in the 
 10.16  calendar year, as provided in clause (2). 
 10.17     Subd. 2.  [NURSERY HOBBYIST SALES.] (a) An organization or 
 10.18  individual may offer nursery stock for sale and be exempt from 
 10.19  the requirement to obtain a nursery stock dealer certificate if: 
 10.20     (1) the gross sales of all nursery stock sold in a calendar 
 10.21  year do not exceed $2,000; 
 10.22     (2) all nursery stock sold or distributed by the hobbyist 
 10.23  is intended for planting in Minnesota; and 
 10.24     (3) all nursery stock purchased or procured for resale or 
 10.25  distribution was grown in Minnesota and has been certified by 
 10.26  the commissioner of agriculture. 
 10.27     (b) The commissioner may prescribe the conditions of the 
 10.28  exempt nursery sales under this subdivision and may conduct 
 10.29  routine inspections of nursery stock offered for sale. 
 10.30     Sec. 15.  [18.541] [NURSERY AND PHYTOSANITARY ACCOUNT.] 
 10.31     A nursery and phytosanitary account is established in the 
 10.32  state treasury.  The fees and penalties collected under this 
 10.33  chapter and interest attributable to money in the account must 
 10.34  be deposited in the state treasury and credited to the nursery 
 10.35  and phytosanitary account in the agricultural fund.  Money in 
 10.36  the account, including interest earned, is appropriated to the 
 11.1   commissioner for administration and enforcement of this chapter. 
 11.2      Sec. 16.  [18.611] [EXPORT CERTIFICATION, INSPECTIONS, 
 11.3   CERTIFICATES, PERMITS, AND FEES.] 
 11.4      Subdivision 1.  [DISPOSITION AND USE OF MONEY 
 11.5   RECEIVED.] All fees and penalties collected under this chapter 
 11.6   and interest attributable to the money in the account must be 
 11.7   deposited in the state treasury and credited to the nursery and 
 11.8   phytosanitary account in the agricultural fund.  Money in the 
 11.9   account, including interest earned, is appropriated to the 
 11.10  commissioner for the administration and enforcement of this 
 11.11  chapter. 
 11.12     Subd. 2.  [COOPERATIVE AGREEMENTS.] The commissioner may 
 11.13  enter into cooperative agreements with federal and state 
 11.14  agencies for administration of the export certification 
 11.15  program.  An exporter of plants or plant products desiring to 
 11.16  originate shipments from Minnesota to a foreign country 
 11.17  requiring a phytosanitary certificate or export certificate must 
 11.18  submit an application to the commissioner. 
 11.19     Subd. 3.  [PHYTOSANITARY AND EXPORT 
 11.20  CERTIFICATES.] Application for phytosanitary certificates or 
 11.21  export certificates must be made on forms provided or approved 
 11.22  by the commissioner.  The commissioner shall conduct inspections 
 11.23  of plants, plant products, or facilities for persons that have 
 11.24  applied for or intend to apply for a phytosanitary certificate 
 11.25  or export certificate from the commissioner.  Inspections must 
 11.26  include one or more of the following as requested or required: 
 11.27     (1) an inspection of the plants or plant products intended 
 11.28  for export under a phytosanitary certificate or export 
 11.29  certificate; 
 11.30     (2) field inspections of growing plants to determine 
 11.31  presence or absence of plant diseases, if necessary; 
 11.32     (3) laboratory diagnosis for presence or absence of plant 
 11.33  diseases, if necessary; 
 11.34     (4) observation and evaluation of procedures and facilities 
 11.35  utilized in handling plants and plant products, if necessary; 
 11.36  and 
 12.1      (5) review of United States Department of Agriculture, 
 12.2   Federal Grain Inspection Service Official Export Grain 
 12.3   Inspection Certificate logs. 
 12.4      The commissioner may issue a phytosanitary or export 
 12.5   certificate if the plants or plant products satisfactorily meet 
 12.6   the requirements of the importing foreign country and the United 
 12.7   States Department of Agriculture requirements.  The requirements 
 12.8   of the destination countries must be met by the applicant. 
 12.9      Subd. 4.  [CERTIFICATE FEES.] (a) The commissioner shall 
 12.10  assess the fees in paragraphs (b) to (f) for the inspection, 
 12.11  service, and work performed in carrying out the issuance of a 
 12.12  phytosanitary certificate or export certificate.  The inspection 
 12.13  fee must be based on mileage and inspection time.  
 12.14     (b) Mileage charge:  current United States Internal Revenue 
 12.15  Service mileage rate. 
 12.16     (c) Inspection time:  $50 per hour minimum or fee necessary 
 12.17  to cover department costs.  Inspection time includes the driving 
 12.18  time to and from the location in addition to the time spent 
 12.19  conducting the inspection. 
 12.20     (d) A fee shall be assessed for any certificate issued that 
 12.21  requires laboratory analysis before issuance.  The fee must be 
 12.22  deposited into the laboratory account as authorized in section 
 12.23  17.85. 
 12.24     (e) Certificate fee for product value greater than $250:  a 
 12.25  fee of $75 for each phytosanitary or export certificate issued 
 12.26  for any single shipment valued at more than $250 in addition to 
 12.27  any mileage or inspection time charges that are assessed. 
 12.28     (f) Certificate fee for product value less than $250:  a 
 12.29  fee of $25 for each phytosanitary or export certificate issued 
 12.30  for any single shipment valued at less than $250 in addition to 
 12.31  any mileage or inspection time charges that are assessed. 
 12.32     Subd. 5.  [CERTIFICATE DENIAL OR CANCELLATION.] The 
 12.33  commissioner may deny or cancel the issuance of a phytosanitary 
 12.34  or export certificate for any of the following reasons: 
 12.35     (1) failure of the plants or plant products to meet 
 12.36  quarantine, regulations, and requirements imposed by the country 
 13.1   for which the phytosanitary or export certificate is being 
 13.2   requested; 
 13.3      (2) failure to completely or accurately provide the 
 13.4   information requested on the application form; 
 13.5      (3) failure to ship the exact plants or plant products 
 13.6   which were inspected and approved; or 
 13.7      (4) failure to pay any fees or costs due the commissioner. 
 13.8      Subd. 6.  [PLANT PROTECTION INSPECTIONS, CERTIFICATES, 
 13.9   PERMITS, AND FEES.] (a) The commissioner may provide inspection, 
 13.10  sampling, or certification services to ensure that Minnesota 
 13.11  plant products or commodities meet import requirements of other 
 13.12  states or countries. 
 13.13     (b) The state plant regulatory official may issue permits 
 13.14  and certificates verifying that various Minnesota agricultural 
 13.15  products or commodities meet specified phytosanitary 
 13.16  requirements, treatment requirements, or pest absence assurances 
 13.17  based on determinations by the commissioner.  The commissioner 
 13.18  may collect fees sufficient to recover costs for these permits 
 13.19  or certificates.  The fees must be deposited in the nursery and 
 13.20  phytosanitary account. 
 13.21     Sec. 17.  [18.612] [CREDITING OF PENALTIES, FEES, AND 
 13.22  COSTS.] 
 13.23     Penalties, cost reimbursements, fees, and other money 
 13.24  collected under this chapter must be deposited into the state 
 13.25  treasury and credited to the appropriate nursery and 
 13.26  phytosanitary or seed account. 
 13.27     Sec. 18.  Minnesota Statutes 2002, section 18.78, is 
 13.28  amended to read: 
 13.29     18.78 [CONTROL OR ERADICATION OF NOXIOUS WEEDS.] 
 13.30     Subdivision 1.  [GENERALLY.] Except as provided in section 
 13.31  18.85, A person owning land, a person occupying land, or a 
 13.32  person responsible for the maintenance of public land shall 
 13.33  control or eradicate all noxious weeds on the land at a time and 
 13.34  in a manner ordered by the commissioner, the county agricultural 
 13.35  inspector, or a local weed inspector. 
 13.36     Subd. 2.  [CONTROL OF PURPLE LOOSESTRIFE.] An owner of 
 14.1   nonfederal lands underlying public waters or wetlands designated 
 14.2   under section 103G.201 is not required to control or eradicate 
 14.3   purple loosestrife below the ordinary high water level of the 
 14.4   public water or wetland.  The commissioner of natural resources 
 14.5   is responsible for control and eradication of purple loosestrife 
 14.6   on public waters and wetlands designated under section 103G.201, 
 14.7   except those located upon lands owned in fee title or managed by 
 14.8   the United States.  The officers, employees, agents, and 
 14.9   contractors of the commissioner of natural resources may enter 
 14.10  upon public waters and wetlands designated under section 
 14.11  103G.201 and, after providing notification to the occupant or 
 14.12  owner of the land, may cross adjacent lands as necessary for the 
 14.13  purpose of investigating purple loosestrife infestations, 
 14.14  formulating methods of eradication, and implementing control and 
 14.15  eradication of purple loosestrife.  The commissioner, after 
 14.16  consultation with the commissioner of agriculture, of natural 
 14.17  resources shall, by June 1 of each year, compile a priority list 
 14.18  of purple loosestrife infestations to be controlled in 
 14.19  designated public waters.  The commissioner of agriculture 
 14.20  natural resources must distribute the list to county 
 14.21  agricultural inspectors, local weed inspectors, and their 
 14.22  appointed agents.  The commissioner of natural resources shall 
 14.23  control listed purple loosestrife infestations in priority order 
 14.24  within the limits of appropriations provided for that purpose.  
 14.25  This procedure shall be the exclusive means for control of 
 14.26  purple loosestrife on designated public waters by the 
 14.27  commissioner of natural resources and shall supersede the other 
 14.28  provisions for control of noxious weeds set forth elsewhere in 
 14.29  this chapter.  The responsibility of the commissioner of natural 
 14.30  resources to control and eradicate purple loosestrife on public 
 14.31  waters and wetlands located on private lands and the authority 
 14.32  to enter upon private lands ends ten days after receipt by the 
 14.33  commissioner of a written statement from the landowner that the 
 14.34  landowner assumes all responsibility for control and eradication 
 14.35  of purple loosestrife under sections 18.78 to 18.88.  State 
 14.36  officers, employees, agents, and contractors of the commissioner 
 15.1   of natural resources are not liable in a civil action for 
 15.2   trespass committed in the discharge of their duties under this 
 15.3   section and are not liable to anyone for damages, except for 
 15.4   damages arising from gross negligence. 
 15.5      Sec. 19.  Minnesota Statutes 2002, section 18.79, 
 15.6   subdivision 2, is amended to read: 
 15.7      Subd. 2.  [AUTHORIZED AGENTS.] The commissioner shall 
 15.8   authorize department of agriculture personnel and may authorize, 
 15.9   in writing, County agricultural inspectors to act as agents in 
 15.10  the administration and enforcement of may administer and enforce 
 15.11  sections 18.76 to 18.88.  
 15.12     Sec. 20.  Minnesota Statutes 2002, section 18.79, 
 15.13  subdivision 3, is amended to read: 
 15.14     Subd. 3.  [ENTRY UPON LAND.] To administer and enforce 
 15.15  sections 18.76 to 18.88, the commissioner, authorized agents of 
 15.16  the commissioner, county agricultural inspectors, and local weed 
 15.17  inspectors may enter upon land without consent of the owner and 
 15.18  without being subject to an action for trespass or any damages.  
 15.19     Sec. 21.  Minnesota Statutes 2002, section 18.79, 
 15.20  subdivision 5, is amended to read: 
 15.21     Subd. 5.  [ORDER FOR CONTROL OR ERADICATION OF NOXIOUS 
 15.22  WEEDS.] The commissioner, A county agricultural inspector, or a 
 15.23  local weed inspector may order the control or eradication of 
 15.24  noxious weeds on any land within the state.  
 15.25     Sec. 22.  Minnesota Statutes 2002, section 18.79, 
 15.26  subdivision 6, is amended to read: 
 15.27     Subd. 6.  [EDUCATIONAL PROGRAMS FOR CONTROL OR ERADICATION 
 15.28  OF NOXIOUS WEEDS.] The commissioner shall conduct education 
 15.29  programs considered necessary for weed inspectors in the 
 15.30  enforcement of the Noxious Weed Law.  The director of the 
 15.31  Minnesota extension service may conduct educational programs for 
 15.32  the general public that will aid compliance with the noxious 
 15.33  weed law. 
 15.34     Sec. 23.  Minnesota Statutes 2002, section 18.79, 
 15.35  subdivision 9, is amended to read: 
 15.36     Subd. 9.  [INJUNCTION.] If the commissioner county 
 16.1   agricultural inspector applies to a court for a temporary or 
 16.2   permanent injunction restraining a person from violating or 
 16.3   continuing to violate sections 18.76 to 18.88, the injunction 
 16.4   may be issued without requiring a bond.  
 16.5      Sec. 24.  Minnesota Statutes 2002, section 18.79, 
 16.6   subdivision 10, is amended to read: 
 16.7      Subd. 10.  [PROSECUTION.] On finding that a person has 
 16.8   violated sections 18.76 to 18.88, the commissioner county 
 16.9   agricultural inspector may start court proceedings in the 
 16.10  locality in which the violation occurred.  The county attorney 
 16.11  may prosecute actions under sections 18.76 to 18.88 within the 
 16.12  county attorney's jurisdiction.  
 16.13     Sec. 25.  Minnesota Statutes 2002, section 18.81, 
 16.14  subdivision 2, is amended to read: 
 16.15     Subd. 2.  [LOCAL WEED INSPECTORS.] Local weed inspectors 
 16.16  shall:  
 16.17     (1) examine all lands, including highways, roads, alleys, 
 16.18  and public ground in the territory over which their jurisdiction 
 16.19  extends to ascertain if section 18.78 and related rules have 
 16.20  been complied with; 
 16.21     (2) see that the control or eradication of noxious weeds is 
 16.22  carried out in accordance with section 18.83 and related 
 16.23  rules; and 
 16.24     (3) issue permits in accordance with section 18.82 and 
 16.25  related rules for the transportation of materials or equipment 
 16.26  infested with noxious weed propagating parts; and 
 16.27     (4) submit reports and attend meetings that the 
 16.28  commissioner requires. 
 16.29     Sec. 26.  Minnesota Statutes 2002, section 18.81, 
 16.30  subdivision 3, is amended to read: 
 16.31     Subd. 3.  [NONPERFORMANCE BY INSPECTORS; REIMBURSEMENT FOR 
 16.32  EXPENSES.] (a) If local weed inspectors neglect or fail to do 
 16.33  their duty as prescribed in this section, the commissioner 
 16.34  county agricultural inspector shall issue a notice to the 
 16.35  inspector providing instructions on how and when to do their 
 16.36  duty.  If, after the time allowed in the notice, the local weed 
 17.1   inspector has not complied as directed, the county agricultural 
 17.2   inspector may perform the duty for the local weed inspector.  A 
 17.3   claim for the expense of doing the local weed inspector's duty 
 17.4   is a legal charge against the municipality in which the 
 17.5   inspector has jurisdiction.  The county agricultural inspector 
 17.6   doing the work may file an itemized statement of costs with the 
 17.7   clerk of the municipality in which the work was performed.  The 
 17.8   municipality shall immediately issue proper warrants to the 
 17.9   county for the work performed.  If the municipality fails to 
 17.10  issue the warrants, the county auditor may include the amount 
 17.11  contained in the itemized statement of costs as part of the next 
 17.12  annual tax levy in the municipality and withhold that amount 
 17.13  from the municipality in making its next apportionment. 
 17.14     (b) If a county agricultural inspector fails to perform the 
 17.15  duties as prescribed in this section, the commissioner shall 
 17.16  issue a notice to the inspector providing instructions on how 
 17.17  and when to do that duty.  
 17.18     (c) The commissioner shall by rule establish procedures to 
 17.19  carry out the enforcement actions for nonperformance required by 
 17.20  this subdivision. 
 17.21     Sec. 27.  Minnesota Statutes 2002, section 18.84, 
 17.22  subdivision 3, is amended to read: 
 17.23     Subd. 3.  [COURT APPEAL OF COSTS; PETITION.] (a) A 
 17.24  landowner who has appealed the cost of noxious weed control 
 17.25  measures under subdivision 2 may petition for judicial review.  
 17.26  The petition must be filed within 30 days after the conclusion 
 17.27  of the hearing before the county board.  The petition must be 
 17.28  filed with the court administrator in the county in which the 
 17.29  land where the noxious weed control measures were undertaken is 
 17.30  located, together with proof of service of a copy of the 
 17.31  petition on the commissioner and the county auditor.  No 
 17.32  responsive pleadings may be required of the commissioner or the 
 17.33  county, and no court fees may be charged for the appearance of 
 17.34  the commissioner or the county in this matter. 
 17.35     (b) The petition must be captioned in the name of the 
 17.36  person making the petition as petitioner and the commissioner of 
 18.1   agriculture and respective county as respondents.  The petition 
 18.2   must include the petitioner's name, the legal description of the 
 18.3   land involved, a copy of the notice to control noxious weeds, 
 18.4   and the date or dates on which appealed control measures were 
 18.5   undertaken. 
 18.6      (c) The petition must state with specificity the grounds 
 18.7   upon which the petitioner seeks to avoid the imposition of a 
 18.8   lien for the cost of noxious weed control measures. 
 18.9      Sec. 28.  Minnesota Statutes 2002, section 18.86, is 
 18.10  amended to read: 
 18.11     18.86 [UNLAWFUL ACTS.] 
 18.12     No person may:  
 18.13     (1) hinder or obstruct in any way the commissioner, the 
 18.14  commissioner's authorized agents, county agricultural 
 18.15  inspectors, or local weed inspectors in the performance of their 
 18.16  duties as provided in sections 18.76 to 18.88 or related rules; 
 18.17     (2) neglect, fail, or refuse to comply with section 18.82 
 18.18  or related rules in the transportation and use of material or 
 18.19  equipment infested with noxious weed propagating parts; 
 18.20     (3) sell material containing noxious weed propagating parts 
 18.21  to a person who does not have a permit to transport that 
 18.22  material or to a person who does not have a screenings permit 
 18.23  issued in accordance with section 21.74; or 
 18.24     (4) neglect, fail, or refuse to comply with a general 
 18.25  notice or an individual notice to control or eradicate noxious 
 18.26  weeds.  
 18.27     Sec. 29.  Minnesota Statutes 2002, section 18B.26, 
 18.28  subdivision 3, is amended to read: 
 18.29     Subd. 3.  [APPLICATION FEE.] (a) A registrant shall pay an 
 18.30  annual application fee for each pesticide to be registered, and 
 18.31  this fee is set at one-tenth of one percent for calendar year 
 18.32  1990, at one-fifth of one percent for calendar year 1991, and at 
 18.33  two-fifths of one percent for calendar year 1992 and thereafter 
 18.34  of annual gross sales within the state and annual gross sales of 
 18.35  pesticides used in the state, with a minimum nonrefundable fee 
 18.36  of $250.  The registrant shall determine when and which 
 19.1   pesticides are sold or used in this state.  The registrant shall 
 19.2   secure sufficient sales information of pesticides distributed 
 19.3   into this state from distributors and dealers, regardless of 
 19.4   distributor location, to make a determination.  Sales of 
 19.5   pesticides in this state and sales of pesticides for use in this 
 19.6   state by out-of-state distributors are not exempt and must be 
 19.7   included in the registrant's annual report, as required under 
 19.8   paragraph (c), and fees shall be paid by the registrant based 
 19.9   upon those reported sales.  Sales of pesticides in the state for 
 19.10  use outside of the state are exempt from the application fee in 
 19.11  this paragraph if the registrant properly documents the sale 
 19.12  location and distributors.  A registrant paying more than the 
 19.13  minimum fee shall pay the balance due by March 1 based on the 
 19.14  gross sales of the pesticide by the registrant for the preceding 
 19.15  calendar year.  The fee for disinfectants and sanitizers shall 
 19.16  be the minimum.  The minimum fee is due by December 31 preceding 
 19.17  the year for which the application for registration is made.  Of 
 19.18  the amount collected after calendar year 1990, at least $600,000 
 19.19  per fiscal year must be credited to the waste pesticide account 
 19.20  under section 18B.065, subdivision 5 The commissioner shall 
 19.21  spend at least $300,000 per fiscal year from the pesticide 
 19.22  regulatory account for the purposes of the waste pesticide 
 19.23  collection program. 
 19.24     (b) An additional fee of $100 must be paid by the applicant 
 19.25  for each pesticide to be registered if the application is a 
 19.26  renewal application that is submitted after December 31. 
 19.27     (c) A registrant must annually report to the commissioner 
 19.28  the amount and type of each registered pesticide sold, offered 
 19.29  for sale, or otherwise distributed in the state.  The report 
 19.30  shall be filed by March 1 for the previous year's registration.  
 19.31  The commissioner shall specify the form of the report and 
 19.32  require additional information deemed necessary to determine the 
 19.33  amount and type of pesticides annually distributed in the 
 19.34  state.  The information required shall include the brand name, 
 19.35  amount, and formulation of each pesticide sold, offered for 
 19.36  sale, or otherwise distributed in the state, but the information 
 20.1   collected, if made public, shall be reported in a manner which 
 20.2   does not identify a specific brand name in the report. 
 20.3      Sec. 30.  Minnesota Statutes 2002, section 21.89, 
 20.4   subdivision 2, is amended to read: 
 20.5      Subd. 2.  [PERMITS; ISSUANCE AND REVOCATION.] (a) The 
 20.6   commissioner shall issue a permit to the initial labeler of 
 20.7   agricultural, vegetable, or flower, and wildflower seeds which 
 20.8   are sold for use in Minnesota and which conform to and are 
 20.9   labeled under sections 21.80 to 21.92.  The categories of 
 20.10  permits are as follows: 
 20.11     (1) for initial labelers who sell 50,000 pounds or less of 
 20.12  agricultural seed each calendar year, an annual permit issued 
 20.13  for a fee established in section 21.891, subdivision 2, 
 20.14  paragraph (b); 
 20.15     (2) for initial labelers who sell vegetable, flower, and 
 20.16  wildflower seed packed for use in home gardens or household 
 20.17  plantings, an annual permit issued for a fee established in 
 20.18  section 21.891, subdivision 2, paragraph (c), based upon the 
 20.19  gross sales from the previous year; and 
 20.20     (3) for initial labelers who sell more than 50,000 pounds 
 20.21  of agricultural seed each calendar year, a permanent permit for 
 20.22  a fee established in section 21.891, subdivision 2, paragraph 
 20.23  (d).  
 20.24     (b) In addition, the person permit holders shall furnish to 
 20.25  the commissioner an itemized statement of all seeds sold in 
 20.26  Minnesota for the periods established by the commissioner.  This 
 20.27  statement shall be delivered, along with the payment of the fee, 
 20.28  based upon the amount and type of seed sold, to the commissioner 
 20.29  no later than 30 days after the end of each reporting period.  
 20.30  Any person holding a permit shall show as part of the analysis 
 20.31  labels or invoices on all agricultural, vegetable, 
 20.32  flower, wildflower, tree or shrub seeds all information the 
 20.33  commissioner requires.  The commissioner may revoke any permit 
 20.34  in the event of failure to comply with applicable laws and rules.
 20.35     Sec. 31.  [21.891] [CHARGES UNDER MINNESOTA SEED LAW.] 
 20.36     Subdivision 1.  [SAMPLING EXPORT SEED.] In accordance with 
 21.1   section 21.85, subdivision 13, the commissioner shall, if 
 21.2   requested, sample seed destined for export to other countries.  
 21.3   The fee for sampling export seed is an hourly rate published 
 21.4   annually by the commissioner and it shall be an amount 
 21.5   sufficient to recover the actual costs for the service provided. 
 21.6      Subd. 2.  [SEED FEE PERMITS.] (a) An initial labeler who 
 21.7   wishes to sell seed in Minnesota must comply with section 21.89, 
 21.8   subdivisions 1 and 2, and the procedures in this subdivision.  
 21.9   Each initial labeler who wishes to sell seed in Minnesota must 
 21.10  apply to the commissioner to obtain a permit.  The application 
 21.11  must contain the name and address of the applicant, the 
 21.12  application date, and the name and title of the applicant's 
 21.13  contact person. 
 21.14     (b) The application for a seed permit covered by section 
 21.15  21.89, subdivision 2, paragraph (a), clause (1), must be 
 21.16  accompanied by an application fee of $50. 
 21.17     (c) The application for a vegetable, flower, and wildflower 
 21.18  seed permit covered by section 21.89, subdivision 2, paragraph 
 21.19  (a), clause (2), must be accompanied by an application fee based 
 21.20  on the level of annual gross sales as follows: 
 21.21     (1) for gross sales of zero to $25,000, the annual permit 
 21.22  fee is $50; 
 21.23     (2) for gross sales of $25,001 to $50,000, the annual 
 21.24  permit fee is $100; 
 21.25     (3) for gross sales of $50,001 to $100,000, the annual 
 21.26  permit fee is $200; 
 21.27     (4) for gross sales of $100,001 to $250,000, the annual 
 21.28  permit fee is $500; 
 21.29     (5) for gross sales of $250,001 to $500,000, the annual 
 21.30  permit fee is $1,000; and 
 21.31     (6) for gross sales of $500,001 and above, the annual 
 21.32  permit fee is $2,000. 
 21.33     (d) The application for an agricultural seed permit covered 
 21.34  by section 21.89, subdivision 2, paragraph (a), clause (3), must 
 21.35  be accompanied by an application fee of $50.  Initial labelers 
 21.36  holding seed fee permits covered under this paragraph need not 
 22.1   apply for a new permit or pay the application fee.  Under this 
 22.2   permit category, the fees for the following kinds of 
 22.3   agricultural seed sold either in bulk or containers are: 
 22.4      (1) oats, wheat, barley:  6.3 cents per hundredweight; 
 22.5      (2) rye, field beans, soybeans, buckwheat, flax:  8.4 cents 
 22.6   per hundredweight; 
 22.7      (3) field corn:  29.4 cents per hundredweight; 
 22.8      (4) forage, lawn and turf grasses, legumes:  49 cents per 
 22.9   hundredweight; 
 22.10     (5) sunflower:  $1.40 per hundredweight; 
 22.11     (6) sugar beet:  $3.29 per hundredweight; and 
 22.12     (7) for any agricultural seed not listed in clauses (1) to 
 22.13  (6), the fee for the crop most closely resembling it in normal 
 22.14  planting rate applies. 
 22.15     (e) If, for reasons beyond the control and knowledge of the 
 22.16  initial labeler, seed is shipped into Minnesota by a person 
 22.17  other than the initial labeler, the responsibility for the seed 
 22.18  fees are transferred to the shipper.  An application for a 
 22.19  transfer of this responsibility must be made to the 
 22.20  commissioner.  Upon approval by the commissioner of the 
 22.21  transfer, the shipper is responsible for payment of the seed 
 22.22  permit fees. 
 22.23     (f) Seed permit fees may be included in the cost of the 
 22.24  seed either as a hidden cost or as a line item cost on each 
 22.25  invoice for seed sold.  To identify the fee on an invoice, the 
 22.26  words, "Minnesota seed permit fees" must be used.  
 22.27     (g) All seed fee permit holders must file semiannual 
 22.28  reports with the commissioner, even if no seed was sold during 
 22.29  the reporting period.  Each semiannual report must be submitted 
 22.30  within 30 days of the end of each reporting period.  The 
 22.31  reporting periods are October 1 to March 31 and April 1 to 
 22.32  September 30 of each year or July 1 to December 31, and January 
 22.33  1 to June 30 of each year.  Permit holders may change their 
 22.34  reporting periods with the approval of the commissioner. 
 22.35     (h) The holder of a seed fee permit must pay fees on all 
 22.36  seed for which the permit holder is the initial labeler and 
 23.1   which are covered by sections 21.80 to 21.92 and sold during the 
 23.2   reporting period. 
 23.3      (i) If a seed fee permit holder fails to submit a 
 23.4   semiannual report and pay the seed fee within 30 days after the 
 23.5   end of each reporting period, the commissioner shall assess a 
 23.6   penalty of $100 or eight percent, calculated on an annual basis, 
 23.7   of the fee due, whichever is greater, but no more than $500 for 
 23.8   each late semiannual report.  A $15 penalty must be charged when 
 23.9   the semiannual report is late, even if no fee is due for the 
 23.10  reporting period.  Seed fee permits may be revoked for failure 
 23.11  to comply with this subdivision or the Minnesota seed law. 
 23.12     Subd. 3.  [HYBRID SEED CORN VARIETY REGISTRATION FEE.] In 
 23.13  accordance with section 21.90, subdivision 2, the fee for the 
 23.14  registration of each hybrid seed corn variety or blend is $50, 
 23.15  which must be paid at the time of registration.  New hybrid seed 
 23.16  corn variety registrations received after March 1 and renewed 
 23.17  registrations of older varieties received after August 1 of each 
 23.18  year will have an annual registration fee of $75 per variety. 
 23.19     Subd. 4.  [BRAND NAME REGISTRATION FEE.] The fee is $25 for 
 23.20  each variety registered for sale by brand name. 
 23.21     Sec. 32.  Minnesota Statutes 2002, section 21.90, 
 23.22  subdivision 2, is amended to read: 
 23.23     Subd. 2.  [FEES.] A record of each new hybrid seed field 
 23.24  corn variety to be sold in Minnesota shall be registered with 
 23.25  the commissioner by February March 1 of each year by the 
 23.26  originator or owner.  Records of all other hybrid seed field 
 23.27  corn varieties sold in Minnesota shall be registered with the 
 23.28  commissioner by August 1 of each year by the originator or 
 23.29  owner.  The commissioner shall establish the annual fee for 
 23.30  registration for each variety.  The record shall include the 
 23.31  permanent designation of the hybrid as well as the day 
 23.32  classification and zone of adaptation, as determined under 
 23.33  subdivision 1, which the originator or owner declares to be the 
 23.34  zone in which the variety is adapted.  In addition, at the time 
 23.35  of the first registration of a hybrid seed field corn variety, 
 23.36  the originator or owner shall include a sworn statement that the 
 24.1   declaration of the zone of adaptation was based on actual field 
 24.2   trials in that zone and that the field trials substantiate the 
 24.3   declaration as to the day and zone classifications to which the 
 24.4   variety is adapted.  The name or number used to designate a 
 24.5   hybrid seed field corn variety in the registration is the only 
 24.6   name of all seed corn covered by or sold under that registration.
 24.7   To assist in defraying the expenses of the Minnesota 
 24.8   agricultural experiment station in carrying out the provisions 
 24.9   of this section, there is transferred annually from the seed 
 24.10  inspection fund to the agricultural experiment station a sum 
 24.11  which shall equal 60 percent of the total revenue from all 
 24.12  hybrid seed field corn variety registrations. 
 24.13     Sec. 33.  Minnesota Statutes 2002, section 21.901, is 
 24.14  amended to read: 
 24.15     21.901 [BRAND NAME REGISTRATION.] 
 24.16     The owner or originator of a variety of nonhybrid seed that 
 24.17  is to be sold in this state must annually register the variety 
 24.18  with the commissioner if the variety is to be sold only under a 
 24.19  brand name.  The registration must include the brand name and 
 24.20  the variety of seed.  The brand name for a blend or mixture need 
 24.21  not be registered. 
 24.22     The fee is $15 for each variety registered for sale by 
 24.23  brand name. 
 24.24     Sec. 34.  Minnesota Statutes 2002, section 28A.08, 
 24.25  subdivision 3, is amended to read: 
 24.26     Subd. 3.  [FEES EFFECTIVE JULY 1, 1999 2003.] 
 24.27                                                    Penalties 
 24.28  Type of food handler                    License    Late     No
 24.29                                          Fee      Renewal  License
 24.30                                          Effective 
 24.31                                          July 1,
 24.32                                          1999
 24.33                                          2003
 24.34  1.   Retail food handler
 24.35       (a) Having gross sales of only
 24.36       prepackaged nonperishable food
 25.1        of less than $15,000 for 
 25.2        the immediately previous 
 25.3        license or fiscal year and 
 25.4        filing a statement with the 
 25.5        commissioner                       $ 48     $ 16     $ 27
 25.6                                           $ 65     $ 21     $ 43
 25.7        (b) Having under $15,000 gross
 25.8        sales including food preparation 
 25.9        or having $15,000 to $50,000 
 25.10       gross sales for the immediately 
 25.11       previous license or fiscal year    $ 65     $ 16     $ 27
 25.12                                          $ 88     $ 29     $ 58
 25.13       (c) Having $50,000 to $250,000 
 25.14       gross sales for the immediately 
 25.15       previous license or fiscal year    $126     $ 37     $ 80 
 25.16                                          $170     $ 56     $112
 25.17       (d) Having $250,000 to 
 25.18       $1,000,000 gross sales for the 
 25.19       immediately previous license or 
 25.20       fiscal year                        $216     $ 54     $107
 25.21                                          $292     $ 96     $193
 25.22       (e) Having $1,000,000 to 
 25.23       $5,000,000 gross sales for the 
 25.24       immediately previous license or 
 25.25       fiscal year                        $601     $107     $187
 25.26                                          $812     $268     $536
 25.27       (f) Having $5,000,000 to
 25.28       $10,000,000 gross sales for the
 25.29       immediately previous license or
 25.30       fiscal year                        $842     $161     $321
 25.31                                        $1,137     $375     $750
 25.32       (g) Having over $10,000,000
 25.33       gross sales for the immediately
 25.34       previous license or fiscal year    $962     $214     $375
 25.35                                        $1,300     $429     $858
 25.36  2.   Wholesale food handler
 26.1        (a) Having gross sales or
 26.2        service of less than $25,000
 26.3        for the immediately previous 
 26.4        license or fiscal year             $ 54     $ 16     $ 16
 26.5                                           $ 73     $ 24     $ 48
 26.6        (b) Having $25,000 to
 26.7        $250,000 gross sales or
 26.8        service for the immediately 
 26.9        previous license or fiscal year    $241     $ 54     $107
 26.10                                          $326     $108     $215
 26.11       (c) Having $250,000 to 
 26.12       $1,000,000 gross sales or
 26.13       service from a mobile unit
 26.14       without a separate food facility
 26.15       for the immediately previous
 26.16       license or fiscal year             $361     $ 80     $161
 26.17                                          $488     $161     $322
 26.18       (d) Having $250,000 to 
 26.19       $1,000,000 gross sales or
 26.20       service not covered under 
 26.21       paragraph (c) for the immediately 
 26.22       previous license or fiscal year    $480     $107     $214
 26.23                                          $648     $214     $428
 26.24       (e) Having $1,000,000 to
 26.25       $5,000,000 gross sales or 
 26.26       service for the immediately 
 26.27       previous license or fiscal year    $601     $134     $268
 26.28                                          $812     $268     $536
 26.29       (f) Having over $5,000,000 gross
 26.30       sales for the immediately 
 26.31       previous license or fiscal year    $692     $161     $321
 26.32                                          $935     $309     $617
 26.33  3.   Food broker                        $120     $ 32     $ 54
 26.34                                          $150     $ 50     $ 99
 26.36  4.   Wholesale food processor
 27.1        or manufacturer 
 27.2        (a) Having gross sales of less 
 27.3        than $125,000 for the 
 27.4        immediately previous license 
 27.5        or fiscal year                     $161     $ 54     $107
 27.6                                           $217     $ 72     $143
 27.7        (b) Having $125,000 to $250,000
 27.8        gross sales for the immediately 
 27.9        previous license or fiscal year    $332     $ 80     $161
 27.10                                          $448     $148     $296
 27.12       (c) Having $250,001 to $1,000,000
 27.13       gross sales for the immediately 
 27.14       previous license or fiscal year    $480     $107     $214
 27.15                                          $648     $214     $428
 27.16       (d) Having $1,000,001 to
 27.17       5,000,000 gross sales for the
 27.18       immediately previous license or
 27.19       fiscal year                        $601     $134     $268
 27.20                                          $812     $268     $536
 27.21       (e) Having $5,000,001 to 
 27.22       $10,000,000 gross sales for 
 27.23       the immediately previous 
 27.24       license or fiscal year             $692     $161     $321 
 27.25                                          $935     $309     $617
 27.26       (f) Having over $10,000,000 
 27.27       gross sales for the immediately 
 27.28       previous license or fiscal year    $963     $214     $375
 27.29                                        $1,301     $429     $859
 27.30  5.   Wholesale food processor of
 27.31       meat or poultry products
 27.32       under supervision of the
 27.33       U. S. Department of Agriculture 
 27.34       (a) Having gross sales of less 
 27.35       than $125,000 for the 
 27.36       immediately previous license 
 28.1        or fiscal year                     $107     $ 27     $ 54
 28.2                                           $145     $ 48     $ 96
 28.3        (b) Having $125,000 to 
 28.4        $250,000 gross sales for the
 28.5        immediately previous license
 28.6        or fiscal year                     $181     $ 54     $ 80
 28.7                                           $245     $ 81     $162
 28.8        (c) Having $250,001 to
 28.9        $1,000,000 gross sales for the
 28.10       immediately previous license
 28.11       or fiscal year                     $271     $ 80     $134
 28.12                                          $366     $121     $242
 28.13       (d) Having $1,000,001 to
 28.14       $5,000,000 gross sales 
 28.15       for the immediately previous 
 28.16       license or fiscal year             $332     $ 80     $161
 28.17                                          $448     $148     $296
 28.18       (e) Having $5,000,001 to 
 28.19       $10,000,000 gross sales for 
 28.20       the immediately previous 
 28.21       license or fiscal year             $392     $107     $187 
 28.22                                          $530     $175     $350
 28.23       (f) Having over $10,000,000 
 28.24       gross sales for the immediately 
 28.25       previous license or fiscal year    $535     $161     $268 
 28.26                                          $723     $239     $477
 28.27  6.   Wholesale food processor or
 28.28       manufacturer operating only at
 28.29       the state fair                     $125     $ 40     $ 50 
 28.30  7.   Wholesale food manufacturer
 28.31       having the permission of the
 28.32       commissioner to use the name
 28.33       Minnesota Farmstead cheese         $ 30     $ 10     $ 15
 28.34   8.  Nonresident frozen dairy 
 28.35       manufacturer                       $200     $ 50     $ 75
 28.36   9.  Wholesale food manufacturer
 29.1        processing less than 700,000
 29.2        pounds per year of raw milk        $ 30     $ 10     $ 15
 29.3    10. A milk marketing organization
 29.4        without facilities for 
 29.5        processing or manufacturing 
 29.6        that purchases milk from milk
 29.7        producers for delivery to a
 29.8        licensed wholesale food 
 29.9        processor or manufacturer          $ 50     $ 15     $ 25
 29.10     Sec. 35.  Minnesota Statutes 2002, section 28A.085, 
 29.11  subdivision 1, is amended to read: 
 29.12     Subdivision 1.  [VIOLATIONS; PROHIBITED ACTS.] The 
 29.13  commissioner may charge a reinspection fee for each reinspection 
 29.14  of a food handler that: 
 29.15     (1) is found with a major violation of requirements in 
 29.16  chapter 28, 29, 30, 31, 31A, 32, 33, or 34, or rules adopted 
 29.17  under one of those chapters; 
 29.18     (2) is found with a violation of section 31.02, 31.161, or 
 29.19  31.165, and requires a follow-up inspection after an 
 29.20  administrative meeting held pursuant to section 31.14; or 
 29.21     (3) fails to correct equipment and facility deficiencies as 
 29.22  required in rules adopted under chapter 28, 29, 30, 31, 31A, 32, 
 29.23  or 34.  The first reinspection of a firm with gross food sales 
 29.24  under $1,000,000 must be assessed at $25 $75.  The fee for a 
 29.25  firm with gross food sales over $1,000,000 is $50 $100.  The fee 
 29.26  for a subsequent reinspection of a firm for the same violation 
 29.27  is 50 percent of their current license fee or $200, whichever is 
 29.28  greater.  The establishment must be issued written notice of 
 29.29  violations with a reasonable date for compliance listed on the 
 29.30  notice.  An initial inspection relating to a complaint is not a 
 29.31  reinspection. 
 29.32     Sec. 36.  Minnesota Statutes 2002, section 28A.09, 
 29.33  subdivision 1, is amended to read: 
 29.34     Subdivision 1.  [ANNUAL FEE; EXCEPTIONS.] Every 
 29.35  coin-operated food vending machine is subject to an annual state 
 29.36  inspection fee of $15 $25 for each nonexempt machine except nut 
 30.1   vending machines which are subject to an annual state inspection 
 30.2   fee of $5 $10 for each machine, provided that: 
 30.3      (a) Food vending machines may be inspected by either a home 
 30.4   rule charter or statutory city, or a county, but not both, and 
 30.5   if inspected by a home rule charter or statutory city, or a 
 30.6   county they shall not be subject to the state inspection fee, 
 30.7   but the home rule charter or statutory city, or the county may 
 30.8   impose an inspection or license fee of no more than the state 
 30.9   inspection fee.  A home rule charter or statutory city or county 
 30.10  that does not inspect food vending machines shall not impose a 
 30.11  food vending machine inspection or license fee. 
 30.12     (b) Vending machines dispensing only gum balls, hard candy, 
 30.13  unsorted candy, or ice manufactured and packaged by another 
 30.14  shall be exempt from the state inspection fee, but may be 
 30.15  inspected by the state.  A home rule charter or statutory city 
 30.16  may impose by ordinance an inspection or license fee of no more 
 30.17  than the state inspection fee for nonexempt machines on the 
 30.18  vending machines described in this paragraph.  A county may 
 30.19  impose by ordinance an inspection or license fee of no more than 
 30.20  the state inspection fee for nonexempt machines on the vending 
 30.21  machines described in this paragraph which are not located in a 
 30.22  home rule charter or statutory city.  
 30.23     (c) Vending machines dispensing only bottled or canned soft 
 30.24  drinks are exempt from the state, home rule charter or statutory 
 30.25  city, and county inspection fees, but may be inspected by the 
 30.26  commissioner or the commissioner's designee. 
 30.27     Sec. 37.  Minnesota Statutes 2002, section 32.394, 
 30.28  subdivision 8, is amended to read: 
 30.29     Subd. 8.  [GRADE A INSPECTION FEES.] A processor or 
 30.30  marketing organization of milk, milk products, sheep milk, or 
 30.31  goat milk who wishes to market Grade A milk or use the Grade A 
 30.32  label must apply for Grade A inspection service from the 
 30.33  commissioner.  A pasteurization plant requesting Grade A 
 30.34  inspection service must hold a Grade A permit and pay an annual 
 30.35  inspection fee of no more than $500.  For Grade A farm 
 30.36  inspection service, the fee must be no more than $50 per farm, 
 31.1   paid annually by the processor or by the marketing organization 
 31.2   on behalf of its patrons.  For a farm requiring a reinspection 
 31.3   in addition to the required biannual inspections, an additional 
 31.4   fee of no more than $25 $45 per reinspection must be paid by the 
 31.5   processor or by the marketing organization on behalf of its 
 31.6   patrons.  The Grade A farm inspection fee must not exceed the 
 31.7   lesser of (1) 40 percent of the department's actual average cost 
 31.8   per farm inspection or reinspection; or (2) the dollar limits 
 31.9   set in this subdivision.  No fee increase may be implemented 
 31.10  until after the commissioner has held three or more public 
 31.11  hearings.  
 31.12     Sec. 38.  Minnesota Statutes 2002, section 32.394, 
 31.13  subdivision 8b, is amended to read: 
 31.14     Subd. 8b.  [MANUFACTURING GRADE FARM CERTIFICATION.] A 
 31.15  processor or marketing organization of milk, milk products, 
 31.16  sheep milk, or goat milk who wishes to market other than Grade A 
 31.17  milk must apply for a manufacturing grade farm certification 
 31.18  inspection from the commissioner.  A manufacturing plant that 
 31.19  pasteurizes milk or milk by-products must pay an annual fee 
 31.20  based on the number of pasteurization units.  This fee must not 
 31.21  exceed $140 per unit.  The fee for farm certification inspection 
 31.22  must not be more than $25 per farm to be paid annually by the 
 31.23  processor or by the marketing organization on behalf of its 
 31.24  patrons.  For a farm requiring more than the one inspection for 
 31.25  certification, a reinspection fee of no more than $25 $45 must 
 31.26  be paid by the processor or by the marketing organization on 
 31.27  behalf of its patrons.  The fee must be set by the commissioner 
 31.28  in an amount necessary to cover 40 percent of the department's 
 31.29  actual cost of providing the annual inspection but must not 
 31.30  exceed the limits in this subdivision.  No fee increase may be 
 31.31  implemented until after the commissioner has held three or more 
 31.32  public hearings.  
 31.33     Sec. 39.  Minnesota Statutes 2002, section 32.394, 
 31.34  subdivision 8d, is amended to read: 
 31.35     Subd. 8d.  [PROCESSOR ASSESSMENT.] (a) A manufacturer shall 
 31.36  pay to the commissioner a fee for fluid milk processed and milk 
 32.1   used in the manufacture of fluid milk products sold for retail 
 32.2   sale in Minnesota.  Beginning May 1, 1993, the fee is six cents 
 32.3   per hundredweight.  If the commissioner determines that a 
 32.4   different fee, in an amount not less than five cents and not 
 32.5   more than nine cents per hundredweight, when combined with 
 32.6   general fund appropriations and fees charged under sections 
 32.7   31.39 and 32.394, subdivision 8, is needed to provide adequate 
 32.8   funding for the Grades A and B inspection programs and the 
 32.9   administration and enforcement of Laws 1993, chapter 65, the 
 32.10  commissioner may, by rule, change the fee on processors within 
 32.11  the range provided within this subdivision as set by the 
 32.12  commissioner's order except that beginning July 1, 2003, the fee 
 32.13  is set at seven cents per hundredweight and thereafter no change 
 32.14  within any 12-month period may be in excess of one cent per 
 32.15  hundredweight. 
 32.16     (b) Processors must report quantities of milk processed 
 32.17  under paragraph (a) on forms provided by the commissioner.  
 32.18  Processor fees must be paid monthly.  The commissioner may 
 32.19  require the production of records as necessary to determine 
 32.20  compliance with this subdivision. 
 32.21     (c) The commissioner may create within the department a 
 32.22  dairy consulting program to provide assistance to dairy 
 32.23  producers who are experiencing problems meeting the sanitation 
 32.24  and quality requirements of the dairy laws and rules. 
 32.25     The commissioner may use money appropriated from the dairy 
 32.26  services account created in subdivision 9 to pay for the program 
 32.27  authorized in this paragraph. 
 32.28     Sec. 40.  Minnesota Statutes 2002, section 35.155, is 
 32.29  amended to read: 
 32.30     35.155 [CERVIDAE IMPORT RESTRICTIONS.] 
 32.31     (a) A person must not import cervidae into the state from a 
 32.32  herd that is infected or exposed to chronic wasting disease or 
 32.33  from a known chronic wasting disease endemic area, as determined 
 32.34  by the board.  A person may import cervidae into the state only 
 32.35  from a herd that is not in a known chronic wasting disease 
 32.36  endemic area, as determined by the board, and the herd has been 
 33.1   subject to a state or provincial approved chronic wasting 
 33.2   disease monitoring program for at least three years.  Cervidae 
 33.3   imported in violation of this section may be seized and 
 33.4   destroyed by the commissioner of natural resources. 
 33.5      (b) This section expires on June 1, 2003. 
 33.6      [EFFECTIVE DATE.] This section is effective the day 
 33.7   following final enactment. 
 33.8      Sec. 41.  Minnesota Statutes 2002, section 41A.09, 
 33.9   subdivision 1, is amended to read: 
 33.10     Subdivision 1.  [APPROPRIATION.] A sum sufficient to make 
 33.11  the payments required by this section $35,000,000 is annually 
 33.12  appropriated from the general fund to the commissioner of 
 33.13  agriculture and all money so appropriated is available until 
 33.14  expended for purposes of developing ethanol production in 
 33.15  Minnesota. 
 33.16     Sec. 42.  Minnesota Statutes 2002, section 41A.09, 
 33.17  subdivision 2a, is amended to read: 
 33.18     Subd. 2a.  [DEFINITIONS.] For the purposes of this section, 
 33.19  the terms defined in this subdivision have the meanings given 
 33.20  them. 
 33.21     (a) "Ethanol" means fermentation ethyl alcohol derived from 
 33.22  agricultural products, including potatoes, cereal, grains, 
 33.23  cheese whey, and sugar beets; forest products; or other 
 33.24  renewable resources, including residue and waste generated from 
 33.25  the production, processing, and marketing of agricultural 
 33.26  products, forest products, and other renewable resources, that: 
 33.27     (1) meets all of the specifications in ASTM specification D 
 33.28  4806-88; and 
 33.29     (2) is denatured as specified in Code of Federal 
 33.30  Regulations, title 27, parts 20 and 21. 
 33.31     (b) "Wet alcohol" means agriculturally derived fermentation 
 33.32  ethyl alcohol having a purity of at least 50 percent but less 
 33.33  than 99 percent. 
 33.34     (c) "Anhydrous alcohol" means fermentation ethyl alcohol 
 33.35  derived from agricultural products as described in paragraph 
 33.36  (a), but that does not meet ASTM specifications or is not 
 34.1   denatured and is shipped in bond for further processing. 
 34.2      (d) "Ethanol plant" means a plant at which ethanol, 
 34.3   anhydrous alcohol, or wet alcohol is produced. 
 34.4      (c) "Commissioner" means the commissioner of agriculture. 
 34.5      Sec. 43.  Minnesota Statutes 2002, section 41A.09, 
 34.6   subdivision 3a, is amended to read: 
 34.7      Subd. 3a.  [ETHANOL PRODUCER PAYMENTS.] (a) The 
 34.8   commissioner of agriculture shall make cash payments to 
 34.9   producers of ethanol, anhydrous alcohol, and wet alcohol located 
 34.10  in the state.  These payments shall apply only to ethanol, 
 34.11  anhydrous alcohol, and wet alcohol fermented in the state and 
 34.12  produced at plants that have begun production by June 30, 2000.  
 34.13  For the purpose of this subdivision, an entity that holds a 
 34.14  controlling interest in more than one ethanol plant is 
 34.15  considered a single producer.  The amount of the payment for 
 34.16  each producer's annual production, is: 
 34.17     (1) except as provided in paragraph (b) (c), is 20 cents 
 34.18  per gallon for each gallon of ethanol or anhydrous alcohol 
 34.19  produced on or before June 30, 2000, or ten years after the 
 34.20  start of production, whichever is later, 19 cents per gallon; 
 34.21  and 
 34.22     (2) for each gallon produced of wet alcohol on or before 
 34.23  June 30, 2000, or ten years after the start of production, 
 34.24  whichever is later, a payment in cents per gallon calculated by 
 34.25  the formula "alcohol purity in percent divided by five," and 
 34.26  rounded to the nearest cent per gallon, but not less than 11 
 34.27  cents per gallon. 
 34.28     The producer payments for anhydrous alcohol and wet alcohol 
 34.29  under this section may be paid to either the original producer 
 34.30  of anhydrous alcohol or wet alcohol or the secondary processor, 
 34.31  at the option of the original producer, but not to both. 
 34.32     The first claim for production after June 30, 2003, must be 
 34.33  accompanied by a disclosure statement on a form provided by the 
 34.34  commissioner.  The disclosure statement must include a detailed 
 34.35  description of the organization of the business structure of the 
 34.36  claimant listing the percentages of ownership by any person or 
 35.1   other entity with an ownership interest of five percent or 
 35.2   greater, the distribution of income received by the claimant, 
 35.3   including operating income and payments under this subdivision, 
 35.4   and any other relevant financial information requested by the 
 35.5   commissioner.  The disclosure statement must include information 
 35.6   sufficient to demonstrate that a majority of the ultimate 
 35.7   beneficial interest in the entity receiving payments under this 
 35.8   section is owned by farmers or spouses of farmers, as defined in 
 35.9   section 500.24, residing in Minnesota.  Subsequent quarterly 
 35.10  claims must report changes in ownership.  Payments must not be 
 35.11  made to a claimant that has less than a majority of Minnesota 
 35.12  farmer control; provided, however, a claimant located in a city 
 35.13  of the first class which qualifies for payments in all other 
 35.14  respects is not subject to this condition.  Information provided 
 35.15  under this paragraph is nonpublic data under section 13.02, 
 35.16  subdivision 9. 
 35.17     (b) No payments shall be made for ethanol production that 
 35.18  occurs after June 30, 2010.  Nonetheless, catch-up payments may 
 35.19  be made either before or after June 30, 2010, for production 
 35.20  prior to June 30, 2010, if payments in the earlier quarters were 
 35.21  reduced because appropriated money was insufficient to make 
 35.22  timely payments in the amount provided in paragraph (a) to all 
 35.23  eligible producers.  To assure that each ethanol producer 
 35.24  receives the full amount of ethanol producer payments to which 
 35.25  the producer is entitled by reason of promises made by the state 
 35.26  in return for equity investment in ethanol production 
 35.27  facilities, the commissioner shall calculate for each producer a 
 35.28  value to be known as the "obligated balance."  The obligated 
 35.29  balance represents the total dollar value, as of July 1, 2003, 
 35.30  that is or will be owed to each Minnesota ethanol producer for 
 35.31  ethanol produced by eligible capacity during all eligible 
 35.32  quarters at a payment rate of 20 cents per gallon.  The 
 35.33  obligated balance is a unique number for each producer and is 
 35.34  reduced on a dollar-for-dollar basis as payments are made to 
 35.35  that producer.  Ethanol producer payments from the state must 
 35.36  continue until the obligated balance for each producer is 
 36.1   reduced to zero. 
 36.2      (b) (c) If the level of production at an ethanol plant 
 36.3   increases due to an increase in the production capacity of the 
 36.4   plant, the payment under paragraph (a), clause (1), applies to 
 36.5   the additional increment of production until ten years after the 
 36.6   increased production began.  Once a plant's production capacity 
 36.7   reaches 15,000,000 gallons per year, no additional increment 
 36.8   will qualify for the payment. 
 36.9      (c) (d) The commissioner shall make payments to producers 
 36.10  of ethanol or wet alcohol in the amount of 1.5 cents for each 
 36.11  kilowatt hour of electricity generated using closed-loop biomass 
 36.12  in a cogeneration facility at an ethanol plant located in the 
 36.13  state.  Payments under this paragraph shall be made only for 
 36.14  electricity generated at cogeneration facilities that begin 
 36.15  operation by June 30, 2000.  The payments apply to electricity 
 36.16  generated on or before the date ten years after the producer 
 36.17  first qualifies for payment under this paragraph.  Total 
 36.18  payments under this paragraph in any fiscal year may not exceed 
 36.19  $750,000.  For the purposes of this paragraph: 
 36.20     (1) "closed-loop biomass" means any organic material from a 
 36.21  plant that is planted for the purpose of being used to generate 
 36.22  electricity or for multiple purposes that include being used to 
 36.23  generate electricity; and 
 36.24     (2) "cogeneration" means the combined generation of: 
 36.25     (i) electrical or mechanical power; and 
 36.26     (ii) steam or forms of useful energy, such as heat, that 
 36.27  are used for industrial, commercial, heating, or cooling 
 36.28  purposes. 
 36.29     (d) (e) Payments under paragraphs (a) and (b) (c) to all 
 36.30  producers may not exceed $35,150,000 in a fiscal year.  Total 
 36.31  payments under paragraphs (a) and (b) (c) to a producer in a 
 36.32  fiscal year may not exceed $2,850,000 $3,000,000. 
 36.33     (e) (f) By the last day of October, January, April, and 
 36.34  July, each producer shall file a claim for payment for ethanol, 
 36.35  anhydrous alcohol, and wet alcohol production during the 
 36.36  preceding three calendar months.  A producer with more than one 
 37.1   plant shall file a separate claim for each plant.  A producer 
 37.2   that files a claim under this subdivision shall include a 
 37.3   statement of the producer's total ethanol, anhydrous alcohol, 
 37.4   and wet alcohol production in Minnesota during the quarter 
 37.5   covered by the claim, including anhydrous alcohol and wet 
 37.6   alcohol produced or received from an outside source.  A producer 
 37.7   shall file a separate claim for any amount claimed under 
 37.8   paragraph (c) (d).  For each claim and statement of total 
 37.9   ethanol, anhydrous alcohol, and wet alcohol production filed 
 37.10  under this subdivision, the volume of ethanol, anhydrous 
 37.11  alcohol, and wet alcohol production or amounts of electricity 
 37.12  generated using closed-loop biomass must be examined by an 
 37.13  independent certified public accountant in accordance with 
 37.14  standards established by the American Institute of Certified 
 37.15  Public Accountants. 
 37.16     (f) (g) Payments shall be made November 15, February 15, 
 37.17  May 15, and August 15.  A separate payment shall be made for 
 37.18  each claim filed.  Except as provided in paragraph (j), the 
 37.19  total quarterly payment to a producer under this paragraph, 
 37.20  excluding amounts paid under paragraph (c) (d), may not exceed 
 37.21  $750,000.  
 37.22     (g) If the total amount for which all producers are 
 37.23  eligible in a quarter under paragraph (c) exceeds the amount 
 37.24  available for payments, the commissioner shall make payments in 
 37.25  the order in which the plants covered by the claims began 
 37.26  generating electricity using closed-loop biomass. 
 37.27     (h) After July 1, 1997, new production capacity is only 
 37.28  eligible for payment under this subdivision if the commissioner 
 37.29  receives: 
 37.30     (1) an application for approval of the new production 
 37.31  capacity; 
 37.32     (2) an appropriate letter of long-term financial commitment 
 37.33  for construction of the new production capacity; and 
 37.34     (3) copies of all necessary permits for construction of the 
 37.35  new production capacity. 
 37.36     The commissioner may approve new production capacity based 
 38.1   on the order in which the applications are received.  
 38.2      (i) The commissioner may not approve any new production 
 38.3   capacity after July 1, 1998, except that a producer with an 
 38.4   approved production capacity of at least 12,000,000 gallons per 
 38.5   year but less than 15,000,000 gallons per year prior to July 1, 
 38.6   1998, is approved for 15,000,000 gallons of production capacity. 
 38.7      (j) Notwithstanding the quarterly payment limits of 
 38.8   paragraph (f) (g), the commissioner shall make an additional 
 38.9   payment in the eighth quarter of each fiscal biennium to ethanol 
 38.10  producers for the lesser of:  (1) 19 20 cents per gallon of 
 38.11  production in the eighth quarter of the biennium that is greater 
 38.12  than 3,750,000 gallons; or (2) the total amount of payments lost 
 38.13  during the first seven quarters of the biennium due to plant 
 38.14  outages, repair, or major maintenance.  Total payments to an 
 38.15  ethanol producer in a fiscal biennium, including any payment 
 38.16  under this paragraph, must not exceed the total amount the 
 38.17  producer is eligible to receive based on the producer's approved 
 38.18  production capacity.  The provisions of this paragraph apply 
 38.19  only to production losses that occur in quarters beginning after 
 38.20  December 31, 1999. 
 38.21     (k) For the purposes of this subdivision "new production 
 38.22  capacity" means annual ethanol production capacity that was not 
 38.23  allowed under a permit issued by the pollution control agency 
 38.24  prior to July 1, 1997, or for which construction did not begin 
 38.25  prior to July 1, 1997. 
 38.26     Sec. 44.  Minnesota Statutes 2002, section 41A.09, is 
 38.27  amended by adding a subdivision to read: 
 38.28     Subd. 3b.  [LIMITATION ON ELIGIBILITY FOR PAYMENTS.] A 
 38.29  producer of ethanol is eligible for ethanol producer payments 
 38.30  under subdivision 3a only while the producer is in compliance 
 38.31  with the shareholder rights provisions of subdivision 3c. 
 38.32     Sec. 45.  Minnesota Statutes 2002, section 41A.09, is 
 38.33  amended by adding a subdivision to read: 
 38.34     Subd. 3c.  [BUSINESS ASSOCIATIONS PRODUCING ETHANOL; 
 38.35  SHAREHOLDER RIGHTS.] (a) A business association organized under 
 38.36  chapter 302A, 308A, or 322B that receives 25 percent or more of 
 39.1   its gross revenues from the sale of fuel-grade ethanol must 
 39.2   comply with this subdivision in addition to other applicable 
 39.3   state and federal laws. 
 39.4      (b) The provisions of the chapter of Minnesota Statutes 
 39.5   under which the business organization is established and any 
 39.6   amendments or successor requirements to that chapter apply to 
 39.7   every business association identified in paragraph (a).  The 
 39.8   rights granted in this subdivision also apply to the spouse of 
 39.9   the shareholder.  In addition to other requirements of law, a 
 39.10  business association must maintain records of all proceedings of 
 39.11  meetings of shareholders and directors during the previous 
 39.12  three-year period, including the vote of each director on roll 
 39.13  call votes.  Roll call votes are required on actions that 
 39.14  directly establish marketing agreements, operational contracts, 
 39.15  and shareholder dividend payments.  Roll call voting is also 
 39.16  required on any matter upon the request of one or more 
 39.17  directors.  Every duly elected director of a business 
 39.18  association identified in paragraph (a) has the right to 
 39.19  inspect, in person and at any reasonable time, the business 
 39.20  records required by this paragraph. 
 39.21     (c) Meetings of the board of directors must be open to the 
 39.22  shareholders of the business and the shareholders' spouses.  
 39.23  Shareholders must be given notice of all scheduled meetings 
 39.24  except those of an emergency nature.  Portions of meetings 
 39.25  relating to labor negotiations, current litigation, and 
 39.26  personnel matters are excluded from the provisions of this 
 39.27  paragraph. 
 39.28     (d) Notwithstanding the provisions of other law, upon 
 39.29  receipt of a written petition concerning governance matters 
 39.30  signed by at least 50 shareholders or five percent of the 
 39.31  shareholders, whichever is less, of a business association, the 
 39.32  matter in the petition must be presented to the shareholders for 
 39.33  a vote at the next annual or special meeting.  A shareholder 
 39.34  wishing to have a matter heard at an annual or special meeting 
 39.35  must submit the petition to the business association not less 
 39.36  than 60 days prior to the scheduled annual meeting or special 
 40.1   meeting.  For purposes of this subdivision, "governance matters" 
 40.2   means matters properly contained in the articles of 
 40.3   incorporation or bylaws by adopting, amending, or repealing 
 40.4   bylaws or the articles of incorporation. 
 40.5      (e) If the directors of a business association provide 
 40.6   information to shareholders to influence their votes on a matter 
 40.7   to be decided by a vote of the shareholders under a successful 
 40.8   petition submitted under paragraph (d), the directors must 
 40.9   provide the organizers of the petition or person presenting the 
 40.10  petition equal time and opportunity to include their position on 
 40.11  the matter to the shareholders in a substantially similar mode 
 40.12  and range of distribution.  The organizers of the petition must 
 40.13  pay the costs of inclusion of their position. 
 40.14     (f) A business association subject to this subdivision must 
 40.15  include in its bylaws a provision allowing each duly elected 
 40.16  board member access to each current ethanol marketing contract 
 40.17  or operating contract entered into by the business association 
 40.18  and transactions conducted under the marketing contract.  
 40.19  Further, the bylaws must provide that each current ethanol 
 40.20  marketing or operating contract, and all ethanol marketing and 
 40.21  operating contracts in effect during the previous two years, and 
 40.22  transactions conducted under the marketing contracts, be made 
 40.23  available for examination by the commissioner of agriculture or 
 40.24  the commissioner's designated representative.  Marketing and 
 40.25  operating information examined by the commissioner or the 
 40.26  commissioner's designated representative is nonpublic data under 
 40.27  section 13.02, subdivision 9. 
 40.28     (g) A business association subject to this subdivision that 
 40.29  is organized after the effective date of this section must 
 40.30  include the provisions of this section in its bylaws or articles 
 40.31  of incorporation.  A business association in existence prior to 
 40.32  the effective date of this subdivision must adopt amendments to 
 40.33  its bylaws or articles of incorporation in compliance with these 
 40.34  provisions not later than 12 months after the effective date.  
 40.35     Sec. 46.  Minnesota Statutes 2002, section 116.07, 
 40.36  subdivision 7a, is amended to read: 
 41.1      Subd. 7a.  [NOTICE OF APPLICATION FOR LIVESTOCK FEEDLOT 
 41.2   PERMIT.] (a) A person who applies to the pollution control 
 41.3   agency or a county board for a permit to construct or expand a 
 41.4   feedlot with a capacity of 500 animal units or more shall, 
 41.5   not later less than ten business days after the application is 
 41.6   submitted before the date on which a permit is issued, provide 
 41.7   notice to each resident and each owner of real property within 
 41.8   5,000 feet of the perimeter of the proposed feedlot.  The notice 
 41.9   may be delivered by first class mail, in person, or by the 
 41.10  publication in a newspaper of general circulation within the 
 41.11  affected area and must include information on the type of 
 41.12  livestock and the proposed capacity of the feedlot.  
 41.13  Notification under this subdivision is satisfied under an equal 
 41.14  or greater notification requirement of a county conditional use 
 41.15  permit.  
 41.16     (b) The agency or a county board must verify that notice 
 41.17  was provided as required under paragraph (a) prior to issuing a 
 41.18  permit. 
 41.19     Sec. 47.  Minnesota Statutes 2002, section 116D.04, 
 41.20  subdivision 2a, is amended to read: 
 41.21     Subd. 2a.  Where there is potential for significant 
 41.22  environmental effects resulting from any major governmental 
 41.23  action, the action shall be preceded by a detailed environmental 
 41.24  impact statement prepared by the responsible governmental unit.  
 41.25  The environmental impact statement shall be an analytical rather 
 41.26  than an encyclopedic document which describes the proposed 
 41.27  action in detail, analyzes its significant environmental 
 41.28  impacts, discusses appropriate alternatives to the proposed 
 41.29  action and their impacts, and explores methods by which adverse 
 41.30  environmental impacts of an action could be mitigated.  The 
 41.31  environmental impact statement shall also analyze those 
 41.32  economic, employment and sociological effects that cannot be 
 41.33  avoided should the action be implemented.  To ensure its use in 
 41.34  the decision making process, the environmental impact statement 
 41.35  shall be prepared as early as practical in the formulation of an 
 41.36  action.  
 42.1      (a) The board shall by rule establish categories of actions 
 42.2   for which environmental impact statements and for which 
 42.3   environmental assessment worksheets shall be prepared as well as 
 42.4   categories of actions for which no environmental review is 
 42.5   required under this section.  
 42.6      (b) The responsible governmental unit shall promptly 
 42.7   publish notice of the completion of an environmental assessment 
 42.8   worksheet in a manner to be determined by the board and shall 
 42.9   provide copies of the environmental assessment worksheet to the 
 42.10  board and its member agencies.  Comments on the need for an 
 42.11  environmental impact statement may be submitted to the 
 42.12  responsible governmental unit during a 30 day period following 
 42.13  publication of the notice that an environmental assessment 
 42.14  worksheet has been completed.  The responsible governmental 
 42.15  unit's decision on the need for an environmental impact 
 42.16  statement shall be based on the environmental assessment 
 42.17  worksheet and the comments received during the comment period, 
 42.18  and shall be made within 15 days after the close of the comment 
 42.19  period.  The board's chair may extend the 15 day period by not 
 42.20  more than 15 additional days upon the request of the responsible 
 42.21  governmental unit.  
 42.22     (c) An environmental assessment worksheet shall also be 
 42.23  prepared for a proposed action whenever material evidence 
 42.24  accompanying a petition by not less than 25 individuals, 
 42.25  submitted before the proposed project has received final 
 42.26  approval by the appropriate governmental units, demonstrates 
 42.27  that, because of the nature or location of a proposed action, 
 42.28  there may be potential for significant environmental effects.  
 42.29  Petitions requesting the preparation of an environmental 
 42.30  assessment worksheet shall be submitted to the board.  The chair 
 42.31  of the board shall determine the appropriate responsible 
 42.32  governmental unit and forward the petition to it.  A decision on 
 42.33  the need for an environmental assessment worksheet shall be made 
 42.34  by the responsible governmental unit within 15 days after the 
 42.35  petition is received by the responsible governmental unit.  The 
 42.36  board's chair may extend the 15 day period by not more than 15 
 43.1   additional days upon request of the responsible governmental 
 43.2   unit.  Except in an environmentally sensitive location where 
 43.3   Minnesota Rules, part 4410.4300, subpart 29, item B, applies, 
 43.4   the proposed action is exempt from Minnesota Rules, parts 
 43.5   4410.0200 to 4410.6500, if: 
 43.6      (1) it is: 
 43.7      (i) an animal feedlot facility with a capacity of less than 
 43.8   1,000 animal units; or 
 43.9      (ii) an expansion of an existing animal feedlot facility by 
 43.10  less than 1,000 animal units; and 
 43.11     (2) the application for the animal feedlot facility 
 43.12  includes a written commitment by the proposer to design, 
 43.13  construct, and operate the facility in full compliance with 
 43.14  Minnesota Rules, chapter 7020. 
 43.15     (d) The board may, prior to final approval of a proposed 
 43.16  project, require preparation of an environmental assessment 
 43.17  worksheet by a responsible governmental unit selected by the 
 43.18  board for any action where environmental review under this 
 43.19  section has not been specifically provided for by rule or 
 43.20  otherwise initiated.  
 43.21     (e) An early and open process shall be utilized to limit 
 43.22  the scope of the environmental impact statement to a discussion 
 43.23  of those impacts, which, because of the nature or location of 
 43.24  the project, have the potential for significant environmental 
 43.25  effects.  The same process shall be utilized to determine the 
 43.26  form, content and level of detail of the statement as well as 
 43.27  the alternatives which are appropriate for consideration in the 
 43.28  statement.  In addition, the permits which will be required for 
 43.29  the proposed action shall be identified during the scoping 
 43.30  process.  Further, the process shall identify those permits for 
 43.31  which information will be developed concurrently with the 
 43.32  environmental impact statement.  The board shall provide in its 
 43.33  rules for the expeditious completion of the scoping process.  
 43.34  The determinations reached in the process shall be incorporated 
 43.35  into the order requiring the preparation of an environmental 
 43.36  impact statement.  
 44.1      (f) Whenever practical, information needed by a 
 44.2   governmental unit for making final decisions on permits or other 
 44.3   actions required for a proposed project shall be developed in 
 44.4   conjunction with the preparation of an environmental impact 
 44.5   statement.  
 44.6      (g) An environmental impact statement shall be prepared and 
 44.7   its adequacy determined within 280 days after notice of its 
 44.8   preparation unless the time is extended by consent of the 
 44.9   parties or by the governor for good cause.  The responsible 
 44.10  governmental unit shall determine the adequacy of an 
 44.11  environmental impact statement, unless within 60 days after 
 44.12  notice is published that an environmental impact statement will 
 44.13  be prepared, the board chooses to determine the adequacy of an 
 44.14  environmental impact statement.  If an environmental impact 
 44.15  statement is found to be inadequate, the responsible 
 44.16  governmental unit shall have 60 days to prepare an adequate 
 44.17  environmental impact statement.  
 44.18     Sec. 48.  Minnesota Statutes 2002, section 116D.04, 
 44.19  subdivision 10, is amended to read: 
 44.20     Subd. 10.  Decisions on the need for an environmental 
 44.21  assessment worksheet, the need for an environmental impact 
 44.22  statement and the adequacy of an environmental impact statement 
 44.23  may be reviewed by a declaratory judgment action in the district 
 44.24  court of the county wherein the proposed action, or any part 
 44.25  thereof, would be undertaken appeals brought by any person 
 44.26  aggrieved by the decision.  Judicial review under this section 
 44.27  shall be initiated within 30 days after the governmental unit 
 44.28  makes the decision, and a bond may be required under section 
 44.29  562.02 unless at the time of hearing on the application for the 
 44.30  bond the plaintiff has shown that the claim has sufficient 
 44.31  possibility of success on the merits to sustain the burden 
 44.32  required for the issuance of a temporary restraining order.  
 44.33  Nothing in this section shall be construed to alter the 
 44.34  requirements for a temporary restraining order or a preliminary 
 44.35  injunction pursuant to the Minnesota rules of civil procedure 
 44.36  for district courts.  The board may initiate judicial review of 
 45.1   decisions referred to herein and may intervene as of right in 
 45.2   any proceeding brought under this subdivision.  
 45.3      Sec. 49.  Minnesota Statutes 2002, section 116D.04, 
 45.4   subdivision 11, is amended to read: 
 45.5      Subd. 11.  If the board or governmental unit which is 
 45.6   required to act within a time period specified in this section 
 45.7   fails to so act, any person may seek an order of the district 
 45.8   court relief through the court of appeals requiring the board or 
 45.9   governmental unit to immediately take the action mandated by 
 45.10  subdivisions 2a and 3a.  The court of appeals shall make a 
 45.11  decision based on the information and record supplied by the 
 45.12  responsible governmental unit. 
 45.13     Sec. 50.  Minnesota Statutes 2002, section 116D.04, 
 45.14  subdivision 13, is amended to read: 
 45.15     Subd. 13.  This section may be enforced by injunction, 
 45.16  action to compel performance, or other appropriate action in the 
 45.17  district court of the county where the violation takes 
 45.18  place court of appeals.  The court of appeals shall have full 
 45.19  jurisdiction to hear and determine the matter appealed.  The 
 45.20  proceeding may be governed by the Rules of Civil Appellate 
 45.21  Procedure.  Upon the request of the board or the chair of the 
 45.22  board, the attorney general may bring an action under this 
 45.23  subdivision. 
 45.24     Sec. 51.  Minnesota Statutes 2002, section 116O.09, 
 45.25  subdivision 1, is amended to read: 
 45.26     Subdivision 1.  [ESTABLISHMENT.] The agricultural 
 45.27  utilization research institute innovation center is established 
 45.28  as a nonprofit corporation under section 501(c)(3) of the 
 45.29  Internal Revenue Code of 1986, as amended.  The agricultural 
 45.30  utilization research institute shall within the department of 
 45.31  agriculture to promote the establishment of new products and 
 45.32  product uses and the expansion of existing markets for the 
 45.33  state's agricultural commodities and products, including direct 
 45.34  financial and technical assistance for Minnesota entrepreneurs.  
 45.35  The institute must be located near an existing agricultural 
 45.36  research facility in the agricultural region of the 
 46.1   state commissioner must establish or maintain facilities for the 
 46.2   center with priority to continued use of facilities at Crookston 
 46.3   and Marshall.  The center shall work with private and public 
 46.4   entities to leverage the resources available to achieve maximum 
 46.5   results for Minnesota agriculture. 
 46.6      Sec. 52.  Minnesota Statutes 2002, section 116O.09, 
 46.7   subdivision 1a, is amended to read: 
 46.8      Subd. 1a.  [BOARD OF DIRECTORS.] The board of directors of 
 46.9   the agricultural utilization research institute innovation 
 46.10  center is comprised of: 
 46.11     (1) the chairs of the senate and the house of 
 46.12  representatives standing committees with jurisdiction over 
 46.13  agriculture policy finance or the chair's designee; 
 46.14     (2) the commissioner or the commissioner's designee; 
 46.15     (3) the dean of the college of agriculture of the 
 46.16  University of Minnesota or the dean's representative; 
 46.17     (2) (4) two representatives of statewide farm organizations 
 46.18  appointed by the commissioner; 
 46.19     (3) (5) two representatives of agribusiness, one of whom is 
 46.20  a member of the Minnesota Technology, Inc. board representing 
 46.21  agribusiness appointed by the commissioner; and 
 46.22     (4) (6) three representatives of the commodity promotion 
 46.23  councils appointed by the commissioner. 
 46.24     A member of the board of directors under clauses (1) to (4) 
 46.25  to (6), including a member serving on July 1, 2003, may 
 46.26  designate a permanent or temporary replacement member 
 46.27  representing the same constituency serve for a maximum of two 
 46.28  three-year terms.  The board's compensation is governed by 
 46.29  section 15.0575, subdivision 3. 
 46.30     Sec. 53.  Minnesota Statutes 2002, section 116O.09, 
 46.31  subdivision 2, is amended to read: 
 46.32     Subd. 2.  [DUTIES.] (a) In addition to the duties and 
 46.33  powers assigned to the institutes in section 116O.08, the 
 46.34  agricultural utilization research institute innovation center 
 46.35  shall: 
 46.36     (1) identify the various market segments characterized by 
 47.1   Minnesota's agricultural industry, address each segment's 
 47.2   individual needs, and identify development opportunities in each 
 47.3   segment for agricultural products; 
 47.4      (2) develop and implement a utilization program for each 
 47.5   segment that addresses its development needs and identifies 
 47.6   techniques to meet those needs opportunities; 
 47.7      (3) monitor and coordinate research among the public and 
 47.8   private organizations and individuals specifically addressing 
 47.9   procedures to transfer new technology to businesses, farmers, 
 47.10  and individuals; 
 47.11     (4) provide research grants to public and private 
 47.12  educational institutions and other organizations that are 
 47.13  undertaking basic and applied research that would to promote the 
 47.14  development of the various emerging agricultural industries; and 
 47.15     (5) provide financial assistance including, but not limited 
 47.16  to:  (i) direct loans, guarantees, interest subsidy payments, 
 47.17  and equity investments; and (ii) participation in loan 
 47.18  participations.  The board of directors shall establish the 
 47.19  terms and conditions of the financial assistance. assist 
 47.20  organizations and individuals with market analysis and product 
 47.21  marketing implementations; 
 47.22     (6) to the extent possible earn and receive revenue from 
 47.23  contracts, patents, licenses, royalties, grants, 
 47.24  fees-for-service, and memberships; 
 47.25     (7) work with other divisions within the department of 
 47.26  agriculture, the United States Department of Agriculture, the 
 47.27  department of trade and economic development, and other agencies 
 47.28  to maximize marketing opportunities locally, nationally, and 
 47.29  internationally; and 
 47.30     (8) leverage available funds from federal, state, and 
 47.31  private sources to develop new markets and value added 
 47.32  opportunities for Minnesota agricultural products. 
 47.33     (b) The agricultural utilization research 
 47.34  institute commissioner shall recommend to the board of directors 
 47.35  shall have the sole approval authority for establishing 
 47.36  agricultural utilization research priorities, requests for 
 48.1   proposals to meet those priorities, awarding of grants, hiring 
 48.2   and direction of personnel, and other expenditures of funds 
 48.3   consistent with the adopted and approved mission and goals of 
 48.4   the agricultural utilization research institute innovation 
 48.5   center.  The actions and expenditures of the agricultural 
 48.6   utilization research institute are subject to audit and regular 
 48.7   annual report to the legislature in general and specifically the 
 48.8   house of representatives agriculture committee, the senate 
 48.9   agriculture and rural development committee, the house of 
 48.10  representatives environment and natural resources finance 
 48.11  committee, and the senate environment and agriculture budget 
 48.12  division.  The center shall annually report by February 1 to the 
 48.13  senate and house of representative standing committees with 
 48.14  jurisdiction over agricultural policy and funding.  The report 
 48.15  must list projects initiated, progress on projects, and 
 48.16  financial information relating to expenditures, income from 
 48.17  other sources, and other information to allow the chairs to 
 48.18  evaluate the effectiveness of the center's activities. 
 48.19     Sec. 54.  Minnesota Statutes 2002, section 116O.09, 
 48.20  subdivision 3, is amended to read: 
 48.21     Subd. 3.  [STAFF.] The commissioner, at the direction of 
 48.22  the board of directors, shall hire provide staff for the 
 48.23  agricultural utilization research institute.  Persons employed 
 48.24  by the agricultural utilization research institute are not state 
 48.25  employees and may participate in state retirement, deferred 
 48.26  compensation, insurance, or other plans that apply to state 
 48.27  employees generally and are subject to regulation by the state 
 48.28  campaign finance and public disclosure board and administrative 
 48.29  support for the center as needed within the resources 
 48.30  available.  The staff shall include a division director for the 
 48.31  center. 
 48.32     Sec. 55.  Minnesota Statutes 2002, section 116O.09, 
 48.33  subdivision 9, is amended to read: 
 48.34     Subd. 9.  [MEETINGS.] The board of directors shall meet at 
 48.35  least twice each year and may hold additional meetings upon 
 48.36  giving notice in accordance with the bylaws of the 
 49.1   institute chapter 13D.  Board meetings are subject to chapter 
 49.2   13D, except section 13D.01, subdivision 1b 6, paragraph (a), as 
 49.3   it pertains to financial information, business plans, income and 
 49.4   expense projections, customer lists, market and feasibility 
 49.5   studies, and trade secret information as defined by section 
 49.6   13.37, subdivision 1, paragraph (b). This information is 
 49.7   nonpublic data under chapter 13. 
 49.8      Sec. 56.  Minnesota Statutes 2002, section 116O.09, 
 49.9   subdivision 12, is amended to read: 
 49.10     Subd. 12.  [FUNDS.] The institute center may accept and use 
 49.11  gifts, grants, or contributions from any source.  Unless 
 49.12  otherwise restricted by the terms of a gift or bequest, the 
 49.13  board center may sell, exchange, or otherwise dispose of and 
 49.14  invest or reinvest the money, securities, or other property 
 49.15  given or bequested to it.  The principal of these funds, the 
 49.16  income from them, and all other revenues received by it from any 
 49.17  nonstate source must be placed in the depositories the board 
 49.18  determines deposited in the state treasury and credited to the 
 49.19  agricultural innovation center account and is subject to 
 49.20  expenditure for the board's center's purposes.  Expenditures of 
 49.21  more than $25,000 must be approved by the full board. 
 49.22     Sec. 57.  Minnesota Statutes 2002, section 116O.09, is 
 49.23  amended by adding a subdivision to read: 
 49.24     Subd. 12a.  [AGRICULTURAL INNOVATION CENTER ACCOUNT.] An 
 49.25  agricultural innovation center account is established in the 
 49.26  agricultural fund in the state treasury.  All gifts, grants, or 
 49.27  contributions from any source received by the department of 
 49.28  agriculture for agricultural innovation shall be deposited in 
 49.29  the state treasury and credited to the agricultural innovation 
 49.30  center account.  Unless otherwise restricted by the terms of the 
 49.31  gift or bequest, the department of agriculture may sell, 
 49.32  exchange, or otherwise dispose of any gift or bequest.  The 
 49.33  proceeds from the sale or disposal shall be deposited in the 
 49.34  agriculture innovation center account. 
 49.35     All negotiable assets transferred from the agricultural 
 49.36  innovation center under subdivision 14 shall be deposited into 
 50.1   the agricultural innovation account. 
 50.2      Money in the account, including interest earned, is 
 50.3   appropriated to the commissioner for the administration of this 
 50.4   section. 
 50.5      Sec. 58.  Minnesota Statutes 2002, section 116O.09, 
 50.6   subdivision 13, is amended to read: 
 50.7      Subd. 13.  [ACCOUNTS; AUDITS DEFINITIONS.] The institute 
 50.8   may establish funds and accounts that it finds convenient.  The 
 50.9   board shall provide for and pay the cost of an independent 
 50.10  annual audit of its official books and records by the 
 50.11  legislative auditor subject to sections 3.971 and 3.972.  A copy 
 50.12  of this audit shall be filed with the secretary of state. 
 50.13     For purposes of this section, "institute" "center" means 
 50.14  the agricultural utilization research institute innovation 
 50.15  center established under this section and "board of directors" 
 50.16  means the board of directors of the agricultural utilization 
 50.17  research institute innovation center and "commissioner" means 
 50.18  the commissioner of agriculture. 
 50.19     Sec. 59.  Minnesota Statutes 2002, section 116O.09, is 
 50.20  amended by adding a subdivision to read: 
 50.21     Subd. 14.  [TRANSFER.] The commissioner of administration, 
 50.22  in consultation with the commissioner of agriculture, shall take 
 50.23  measures necessary to transfer the functions, assets, and 
 50.24  liabilities from the corporation established under this section 
 50.25  to the department of agriculture.  During the transition period 
 50.26  the commissioner of agriculture must be fully informed of all 
 50.27  expenditures of the corporation.  There is no obligation for the 
 50.28  commissioner to pay state funds for projects or operations of 
 50.29  the agricultural utilization research institute beyond October 
 50.30  1, 2003, unless approved by the board and the commissioner.  
 50.31     Sec. 60.  [REVISOR'S INSTRUCTION.] 
 50.32     The revisor shall change the term "agricultural utilization 
 50.33  research institute" to "agricultural innovation center" in 
 50.34  Minnesota Statutes and change "institute" to "center" in 
 50.35  Minnesota Statutes, section 116O.09.  The revisor shall recodify 
 50.36  Minnesota Statutes, section 116O.09 into Minnesota Statutes, 
 51.1   chapter 17. 
 51.2      Sec. 61.  [REPEALER.] 
 51.3      Minnesota Statutes 2002, sections 17.110; 18.51; 18.52; 
 51.4   18.53; 18.54; 18.79, subdivisions 1, 7, and 11; 18.85; 41A.09, 
 51.5   subdivisions 1a, 5a, 6, 7, and 8, are repealed. 
 51.6      Sec. 62.  [REPEALER; MINNESOTA RULES.] 
 51.7      Minnesota Rules, part 1510.0281, is repealed. 
 51.8      Sec. 63.  [EFFECTIVE DATE.] 
 51.9      Except as otherwise provided, this act is effective July 1, 
 51.10  2003.