HF 1611

2nd Engrossment - 87th Legislature (2011 - 2012) Posted on 05/17/2011 12:12pm

A bill for an act
relating to agriculture; changing certain programs, requirements, fees, and duties;
amending Minnesota Statutes 2010, sections 18B.03, subdivision 1, as amended;
18B.065, by adding a subdivision; 18B.316, subdivision 6; 18G.07, subdivision
1; 18G.10, subdivisions 5, 7, by adding a subdivision; 18H.07, subdivisions
2, 3; 18H.10; 18H.14; 21.82, subdivisions 7, 8; 35.0661, subdivisions 2, 3;
41A.105, by adding a subdivision; 41A.12, subdivisions 2, 4; 115.03, by adding a
subdivision; 116.07, subdivision 7d; 223.17, subdivision 6; 232.22, subdivisions
3, 4, 5; 232.23, subdivision 10; 232.24, subdivisions 1, 2; 236.02, subdivision
5, by adding a subdivision; Laws 2011, chapter 14, section 6; proposing coding
for new law as Minnesota Statutes, chapter 32C; repealing Minnesota Statutes
2010, sections 17B.01; 17B.02; 17B.03; 17B.04; 17B.041; 17B.0451; 17B.048;
17B.05; 17B.06; 17B.07; 17B.10; 17B.11; 17B.12; 17B.13; 17B.14; 17B.15,
subdivisions 1, 3; 17B.16; 17B.17; 17B.18; 17B.20; 17B.22, subdivisions 1,
2; 17B.28; 17B.29; 232.24, subdivision 3; 395.14; 395.15; 395.16; 395.17;
395.18; 395.19; 395.20; 395.21; 395.22; 395.23; 395.24; Minnesota Rules, parts
1505.0780; 1505.0810; 1562.0100, subparts 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25; 1562.0200; 1562.0700, subparts
1b, 3; 1562.0900; 1562.1300.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 18B.03, subdivision 1, as amended by
Laws 2011, chapter 14, section 7, is amended to read:

Subdivision 1.

Administration by commissioner.

The commissioner shall
administer, implement, and enforce this chapter and the Department of Agriculture
is the lead state agency for the regulation of pesticides. The commissioner has the
sole regulatory authority over the terrestrial application of pesticides, including, but
not limited to, the application of pesticides to agricultural crops, structures, and other
nonaquatic environments. new text begin Except as provided in subdivision 3, a state agency other than
the Department of Agriculture shall not regulate or require permits for the terrestrial or
nonaquatic application of pesticides.
new text end

Sec. 2.

Minnesota Statutes 2010, section 18B.065, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Indemnification. new text end

new text begin (a) A local unit of government, when operating or
participating in a waste pesticide collection program pursuant to a cooperative agreement
with the commissioner under this section, is an employee of the state, certified to be
acting within the scope of employment, for purposes of the indemnification provisions of
section 3.736, subdivision 9, for claims that arise out of the transportation, management,
or disposal of any waste pesticide covered by the agreement:
new text end

new text begin (1) from and after the time the waste permanently leaves the local unit of
government's possession and comes into the possession of the state's authorized
transporter; and
new text end

new text begin (2) during the time the waste is transported between the local unit of government
facilities by the state's authorized transporter.
new text end

new text begin (b) The state is not obligated to defend or indemnify a local unit of government under
this subdivision to the extent of the local unit of government's liability insurance. The
local unit of government's right to indemnify is not a waiver of the limitation, defenses,
and immunities available to either the local unit of government or the state by law.
new text end

Sec. 3.

Minnesota Statutes 2010, section 18B.316, subdivision 6, is amended to read:

Subd. 6.

Agricultural pesticide sales invoices.

new text begin (a) new text end Sales invoices for agricultural
pesticides sold in or into this state by a licensed agricultural pesticide dealer or a pesticide
dealer under this section must show the percent of gross sales fee rate assessed and the
gross sales fee paid under section 18B.26, subdivision 3, paragraph (c).

new text begin (b) A licensed agricultural pesticide dealer or a pesticide dealer may request an
exemption from paragraph (a). The request for exemption must be in writing to the
commissioner and must include verifiable information to justify that compliance with
paragraph (a) is an extreme business hardship for the licensed agricultural pesticide dealer
or pesticide dealer. The commissioner may approve or reject a request for exemption
based upon review of the submitted information. An approved exemption under this
paragraph is valid for one calendar year. The commissioner must maintain a list of those
licensed agricultural pesticide dealers or pesticide dealers that have been granted an
exemption on the department's Web site.
new text end

new text begin (c) A licensed agricultural pesticide dealer or a pesticide dealer issued an exemption
under paragraph (b) must include the following statement on each sales invoice for any
sale of an agricultural pesticide: "Minnesota Department of Agriculture Annual Gross
Sales Fees of 0.55% have been Assessed and Paid on the Sale of an Agricultural Pesticide."
new text end

new text begin (d) new text end Only the person who actually will pay the gross sales fee may show the rate or
the amount of the fee as a line item on the sales invoice.

Sec. 4.

Minnesota Statutes 2010, section 18G.07, subdivision 1, is amended to read:

Subdivision 1.

Creation of registry.

(a) The commissioner shall maintain a list of
all persons new text begin , businesses, new text end and companies that new text begin employ persons who new text end provide tree care or tree
trimming services in Minnesota. All new text begin commercial new text end tree care providers, tree trimmers, and
deleted text begin persons who deleted text end new text begin employers that direct employees to new text end remove trees, limbs, branches, brush, or
shrubs for hire must be registered deleted text begin by deleted text end new text begin with new text end the commissioner.

(b) Persons or companies who are required to be registered under paragraph (a) must
register annually by providing the following to the commissioner:

(1) accurate and up-to-date business name, address, and telephone number;

(2) a complete list of all Minnesota counties in which they work; and

(3) a nonrefundable fee of $25 for initial application or renewing the registration.

(c) All persons and companies required to be registered under paragraph (a) must
register before conducting the activities specified in paragraph (a). Annual registration
expires December 31, must be renewed annually, and the renewal fee remitted by January
deleted text begin 7 deleted text end new text begin 1 new text end of the year for which it is issued. In addition, a penalty of ten percent of the renewal fee
due must be charged for each month, or portion of a month, that the fee is delinquent up to
a maximum of 30 percent for any application for renewal postmarked after December 31.

Sec. 5.

Minnesota Statutes 2010, section 18G.10, subdivision 5, is amended to read:

Subd. 5.

Certificate fees.

(a) The commissioner shall assess the fees in paragraphs
(b) to (f) for the inspection, service, and work performed in carrying out the issuance of
a phytosanitary certificate or export certificate. The inspection fee must be based on
mileage and inspection time.

(b) Mileage charge: current United States Internal Revenue Service mileage rate.

(c) Inspection time: $50 per hour minimum or fee necessary to cover department
costs. Inspection time includes the driving time to and from the location in addition to
the time spent conducting the inspection.

(d) If laboratory analysis or other technical analysis is required to issue a certificate,
the commissioner must set and collect the fee to recover this additional cost.

(e) Certificate fee for product value greater than $250: $75 new text begin minimum or fee
necessary to cover department costs, including research and processing costs, new text end for each
phytosanitary or export certificate issued for any single shipment valued at more than $250
in addition to any mileage or inspection time charges that are assessed.

(f) Certificate fee for product value less than $250: $25 new text begin minimum or fee necessary to
cover department costs, including research and processing costs, new text end for each phytosanitary or
export certificate issued for any single shipment valued at less than $250 in addition to
any mileage or inspection time charges that are assessed.

(g) For services provided for in subdivision 7 that are goods and services provided
for the direct and primary use of a private individual, business, or other entity, the
commissioner must set and collect the fees to cover the cost of the services provided.

Sec. 6.

Minnesota Statutes 2010, section 18G.10, subdivision 7, is amended to read:

Subd. 7.

Supplemental, additional, or other certificates and permits.

(a) The
commissioner may provide inspection, sampling, or certification services to ensure
that Minnesota new text begin plant treatment processes, new text end plant products new text begin , new text end or commodities meet import
requirements of other states or countries.

(b) The state plant regulatory official may issue permits and certificates verifying that
various Minnesota agricultural new text begin plant treatment processes, new text end products new text begin , new text end or commodities meet
specified plant health requirements, treatment requirements, or pest absence assurances
based on determinations by the commissioner.

Sec. 7.

Minnesota Statutes 2010, section 18G.10, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Misuse of a certificate or permit. new text end

new text begin Certificates, permits, and official letters
issued to support certification or permit processes are not transferable to another location
or another person.
new text end

Sec. 8.

Minnesota Statutes 2010, section 18H.07, subdivision 2, is amended to read:

Subd. 2.

Nursery stock grower certificate.

(a) A nursery stock grower must
pay an annual fee based on the area of all acreage on which nursery stock is grown for
certification as follows:

(1) less than one-half acre, $150;

(2) from one-half acre to two acres, $200;

(3) over two acres up to five acres, $300;

(4) over five acres up to ten acres, $350;

(5) over ten acres up to 20 acres, $500;

(6) over 20 acres up to 40 acres, $650;

(7) over 40 acres up to 50 acres, $800;

(8) over 50 acres up to 200 acres, $1,100;

(9) over 200 acres up to 500 acres, $1,500; and

(10) over 500 acres, $1,500 plus $2 for each additional acre.

(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due
must be charged for each month, or portion thereof, that the fee is delinquent up to a
maximum of 30 percent for any application for renewal not postmarked by December 31
of the current year.

new text begin Beginning April 1, a firm found operating without a nursery stock growers certificate
must pay the required nursery stock growers certificate fee.
new text end

Sec. 9.

Minnesota Statutes 2010, section 18H.07, subdivision 3, is amended to read:

Subd. 3.

Nursery stock dealer certificate.

(a) A nursery stock dealer must pay an
annual fee based on the dealer's gross sales of certified nursery stock per location during
the most recent certificate year. A certificate applicant operating for the first time must pay
the minimum fee. The fees per sales location are:

(1) gross sales up to $5,000, $150;

(2) gross sales over $5,000 up to $20,000, $175;

(3) gross sales over $20,000 up to $50,000, $300;

(4) gross sales over $50,000 up to $75,000, $425;

(5) gross sales over $75,000 up to $100,000, $550;

(6) gross sales over $100,000 up to $200,000, $675; and

(7) gross sales over $200,000, $800.

(b) In addition to the fees in paragraph (a), a penalty of ten percent of the fee due
must be charged for each month, or portion thereof, that the fee is delinquent up to a
maximum of 30 percent for any application for renewal not postmarked by December 31
of the current year.

new text begin Beginning April 1, a firm found operating without a nursery stock dealer certificate
must pay the required nursery stock dealer certificate fee.
new text end

Sec. 10.

Minnesota Statutes 2010, section 18H.10, is amended to read:

18H.10 STORAGE OF NURSERY STOCK.

new text begin (a) new text end All nursery stock must be kept and displayed under conditions of temperature,
light, and moisture sufficient to maintain the viability and vigor of the nursery stock.

new text begin (b) new text end Packaged dormant nursery stock must be stored under conditions that retard
growth, prevent etiolated growth, and protect its viability.

new text begin (c) Balled and burlapped nursery stock being held for sale to the public must be kept
in a moisture-holding material approved by the commissioner and not toxic to plants.
The moisture-holding material must adequately cover and protect the ball of earth and
must be kept moist at all times.
new text end

Sec. 11.

Minnesota Statutes 2010, section 18H.14, is amended to read:

18H.14 LABELING AND ADVERTISING OF NURSERY STOCK.

(a) Plants, plant materials, or nursery stock must not be labeled or advertised with
false or misleading information including, but not limited to, scientific name, variety,
place of origin, hardiness zone as defined by the United States Department of Agriculture,
and growth habit.

(b) A person may not offer for distribution plants, plant materials, or nursery stock,
represented by some specific or special form of notation, including, but not limited to,
"free from" or "grown free of," unless the plants are produced under a specific program
approved by the commissioner to address the specific plant properties addressed in the
special notation claim.

new text begin (c) Nursery stock collected from the wild state must be inspected and certified
prior to sale and at the time of sale must be labeled "Collected from the Wild." The label
must remain on each plant or clump of plants while it is offered for sale and during the
distribution process. The collected stock may be grown in nursery rows at least two years,
after which the plants may be sold without the labeling required by this paragraph.
new text end

Sec. 12.

Minnesota Statutes 2010, section 21.82, subdivision 7, is amended to read:

Subd. 7.

Vegetable seeds.

For vegetable seeds prepared for use in home gardens
or household plantings the requirements in paragraphs (a) to (p) apply. Vegetable seeds
packed for sale in commercial quantities to farmers, conservation groups, and other similar
entities are considered agricultural seeds and must be labeled accordingly.

(a) The label must contain the name of the kind or kind and variety for each seed
component in excess of five percent of the whole and the percentage by weight of each
in order of its predominance. If the variety of those kinds generally labeled as to variety
is not stated and it is not required to be stated, the label must show the name of the kind
and the words "variety not stated."

(b) The percentage that is hybrid must be at least 95 percent of the percentage of pure
seed shown unless the percentage of pure seed which is hybrid seed is shown separately.
If two or more kinds of varieties are present in excess of five percent and are named on
the label, each that is hybrid must be designated as hybrid on the label. Any one kind or
kind and variety that has pure seed that is less than 95 percent but more than 75 percent
hybrid seed as a result of incompletely controlled pollination in a cross must be labeled
to show the percentage of pure seed that is hybrid seed or a statement such as "contains
from 75 percent to 95 percent hybrid seed." No one kind or variety of seed may be labeled
as hybrid if the pure seed contains less than 75 percent hybrid seed. The word "hybrid"
must be shown on the label in conjunction with the kind.

(c) Blends must be listed on the label using the term "blend" in conjunction with
the kind.

(d) Mixtures shall be listed on the label using the term "mixture," "mix," or "mixed."

(e) The label must show a lot number or other lot identification.

(f) The origin may be omitted from the label.

(g) The label must show the year for which the seed was packed for sale listed as
"packed for (year)" for seed with a percentage of germination that exceeds the standard last
established by the commissioner, the percentage of germination and the calendar month
and year that the percentages were determined by test, or the calendar month and year the
germination test was completed and the statement "sell by (month and year listed here),"
which may be no more than 12 months from the date of test, exclusive of the month of test.

(h) For vegetable seeds which germinate less than the standard last established by
the commissioner, the label must show:

(1) a percentage of germination, exclusive of hard or dormant seed or both;

(2) a percentage of hard or dormant seed or both, if present; and

(3) the words "below standard" in not less than eight point type and the month and
year the percentages were determined by test.

(i) The net weight of the contents new text begin or a statement indicating the number of seeds in
the container or both, new text end must appear on either the container or the label deleted text begin , except that for
containers with contents of 200 seeds or less a statement indicating the number of seeds in
the container may be listed along with or in lieu of the net weight of contents deleted text end .

(j) The heading for and percentage by weight of pure seed may be omitted from a
label if the total is more than 90 percent.

(k) The heading for and percentage by weight of weed seed may be omitted from a
label if they are not present in the seed.

(l) The heading "noxious weed seeds" may be omitted from a label if they are not
present in the seed.

(m) The heading for and percentage by weight of other crop seed may be omitted
from a label if it is less than five percent.

(n) The heading for and percentage by weight of inert matter may be omitted from a
label if it is less than ten percent.

(o) The label must contain the name and address of the person who labeled the
seed or who sells the seed in this state or a code number that has been registered with
the commissioner.

(p) The labeling requirements for vegetable seeds prepared for use in home gardens
or household plantings when sold outside their original containers are met if the seed is
weighed from a properly labeled container in the presence of the purchaser.

Sec. 13.

Minnesota Statutes 2010, section 21.82, subdivision 8, is amended to read:

Subd. 8.

Flower seeds.

For flower and wildflower seeds prepared for use in home
gardens or household plantings, the requirements in paragraphs (a) to (l) apply. Flower
and wildflower seeds packed for sale in commercial quantities to farmers, conservation
groups, and other similar entities are considered agricultural seeds and must be labeled
accordingly.

(a) The label must contain the name of the kind and variety or a statement of type
and performance characteristics as prescribed by rule.

(b) The percentage that is hybrid must be at least 95 percent of the percentage of pure
seed shown unless the percentage of pure seed which is hybrid seed is shown separately.
If two or more kinds of varieties are present in excess of five percent and are named on
the label, each that is hybrid must be designated as hybrid on the label. Any one kind or
kind and variety that has pure seed that is less than 95 percent but more than 75 percent
hybrid seed as a result of incompletely controlled pollination in a cross must be labeled
to show the percentage of pure seed that is hybrid seed or a statement such as "contains
from 75 percent to 95 percent hybrid seed." No one kind or variety of seed may be labeled
as hybrid if the pure seed contains less than 75 percent hybrid seed. The word "hybrid"
must be shown on the label in conjunction with the kind.

(c) Blends must be listed on the label using the term "blend" in conjunction with
the kind.

(d) Mixtures must be listed on the label using the term "mixture," "mix," or "mixed."

(e) The label must contain the lot number or other lot identification.

(f) The origin may be omitted from the label.

(g) The label must contain the year for which the seed was packed for sale listed as
"packed for (year)" for seed with a percentage of germination that exceeds the standard last
established by the commissioner, the percentage of germination and the calendar month
and year that the percentages were determined by test, or the calendar month and year the
germination test was completed and the statement "sell by (month and year listed here),"
which may be no more than 12 months from the date of test, exclusive of the month of test.

(h) For flower seeds which germinate less than the standard last established by
the commissioner, the label must show:

(1) percentage of germination exclusive of hard or dormant seed or both;

(2) percentage of hard or dormant seed or both, if present; and

(3) the words "below standard" in not less than eight point type and the month and
year this percentage was determined by test.

(i) The label must show the net weight of contents new text begin or a statement indicating the
number of seeds in the container, or both, new text end on either the container or the label deleted text begin , except that
for containers with contents of 200 seeds or less a statement indicating the number of
seeds in the container may be listed along with or in lieu of the net weight of contents deleted text end .

(j) The heading for and percentage by weight of pure seed may be omitted from a
label if the total is more than 90 percent.

(k) The heading for and percentage by weight of weed seed may be omitted from a
label if they are not present in the seed.

(l) The heading "noxious weed seeds" may be omitted from a label if they are not
present in the seed.

(m) The heading for and percentage by weight of other crop seed may be omitted
from a label if it is less than five percent.

(n) The heading for and percentage by weight of inert matter may be omitted from a
label if it is less than ten percent.

(o) The label must show the name and address of the person who labeled the seed
or who sells the seed within this state, or a code number which has been registered with
the commissioner.

Sec. 14.

new text begin [32C.01] ORGANIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Dairy Research, Teaching, and Consumer
Education Authority is established as a public corporation. The business of the authority
must be conducted under the name "Dairy Research, Teaching, and Consumer Education
Authority."
new text end

new text begin Subd. 2. new text end

new text begin Board of directors. new text end

new text begin The authority is governed by a board of nine directors.
The term of a director, except as otherwise provided in this subdivision, is four years.
The commissioner of agriculture is a member of the board. The governor shall appoint
four members of the board. Two of the members appointed by the governor must be
currently engaged in the business of operating a dairy. Two of the members appointed
by the governor must be representatives of Minnesota-based businesses actively engaged
in working with or serving Minnesota's dairy industry. The dean of the University of
Minnesota College of Food, Agriculture and Natural Resource Sciences, or the dean's
designee, is a member of the board. One member of the board must be a representative
of a state trade association that represents the interests of milk producers. One member
of the board must be a representative of the Minnesota Division of the Midwest Dairy
Council. One member of the board must be a member of the agricultural education
faculty of the Minnesota State Colleges and Universities System. The four members of
the initial board of directors who are appointed by the governor must be appointed for
terms of four years, and the other four members must be appointed for an initial term of
two years. Vacancies for the governor's appointed positions on the board must be filled by
appointment of the governor. Vacancies for other positions on the board must be filled
by the named represented entities. Board members must not be compensated for their
services other than to be reimbursed for reasonable expenses incurred in connection with
their duties as board members. This reimbursement must be reviewed annually by the
commissioner of management and budget.
new text end

new text begin Subd. 3. new text end

new text begin Bylaws. new text end

new text begin The board must adopt bylaws necessary for the conduct of the
business of the authority, consistent with this chapter.
new text end

new text begin Subd. 4. new text end

new text begin Place of business. new text end

new text begin The board must locate and maintain the authority's
place of business within the state.
new text end

new text begin Subd. 5. new text end

new text begin Chair. new text end

new text begin The board must annually elect from among its members a chair and
other officers necessary for the performance of its duties.
new text end

new text begin Subd. 6. new text end

new text begin Meetings. new text end

new text begin The board must meet at least four times each year and may hold
additional meetings upon giving notice in accordance with the bylaws of the authority.
Board meetings are subject to chapter 13D.
new text end

new text begin Subd. 7. new text end

new text begin Conflict of interest. new text end

new text begin A director, employee, or officer of the authority may
not participate in or vote on a decision of the board relating to an organization in which
the director has either a direct or indirect financial interest.
new text end

new text begin Subd. 8. new text end

new text begin Economic interest statements. new text end

new text begin Directors and officers of the authority are
public officials for the purpose of section 10A.09, and must file statements of economic
interest with the Campaign Finance and Public Disclosure Board.
new text end

Sec. 15.

new text begin [32C.02] POWERS.
new text end

new text begin Subdivision 1. new text end

new text begin General corporate powers. new text end

new text begin (a) The authority has the powers granted
to a business corporation by section 302A.161, subdivisions 3; 4; 5; 7; 8; 9; 11; 12; 13,
except that the authority may not act as a general partner in any partnership; 14; 15; 16; 17;
18; and 22, and the powers necessary or convenient to exercise the enumerated powers.
new text end

new text begin (b) Section 302A.041 applies to this chapter and the authority in the same manner
that it applies to business corporations established under chapter 302A.
new text end

new text begin Subd. 2. new text end

new text begin Facility design; development and operation. new text end

new text begin The authority may enter into
management contracts, lease agreements, or both, with a Minnesota nonprofit corporation
to design, develop, and operate a facility to further the purposes of this chapter at the site
determined by the board and on the terms that the board finds desirable. The board must
identify and acquire a site that will accommodate the following facilities and activities:
new text end

new text begin (1) housing for bred and lactating animals;
new text end

new text begin (2) milking parlor;
new text end

new text begin (3) automatic milking systems;
new text end

new text begin (4) cross-ventilated and natural-ventilated housing;
new text end

new text begin (5) transition cow housing;
new text end

new text begin (6) special needs and hospital housing;
new text end

new text begin (7) classrooms and a conference room;
new text end

new text begin (8) dairy processing facility with retail;
new text end

new text begin (9) visitors' center;
new text end

new text begin (10) student housing;
new text end

new text begin (11) laboratory facilities;
new text end

new text begin (12) space to accommodate installation of an anaerobic digester system to research
energy production from feedstock produced on-site or from off-site sources; and
new text end

new text begin (13) space for feed storage to allow for research capabilities at the facility.
new text end

new text begin Notwithstanding the provisions of section 32C.01, subdivision 7, relating to conflict
of interest, a director or officer of the authority who is also a director, officer, or member
of a nonprofit corporation with which the authority enters into management contracts or
lease agreements may participate in and vote on the decision of the board as to the terms
and conditions of management contracts or lease agreements between the Minnesota
nonprofit corporation and the authority.
new text end

new text begin Subd. 3. new text end

new text begin Funds. new text end

new text begin The authority may accept and use gifts, grants, or contributions
from any source to support operation of the facility. Unless otherwise restricted by the
terms of a gift or bequest, the board may sell, exchange, or otherwise dispose of, and
invest or reinvest the money, securities, or other property given or bequeathed to it. The
principal of these funds, the income from them, and all other revenues received by the
authority from any nonstate source must be placed in depositories chosen by the board
and are subject to expenditure for the board's purposes. Expenditures of $25,000 or more
must be approved by the full board.
new text end

new text begin Subd. 4. new text end

new text begin Animals; regulation. new text end

new text begin The authority must comply with all applicable
laws and rules relating to quarantine, transportation, examination, habitation, care, and
treatment of animals.
new text end

Sec. 16.

new text begin [32C.03] EMPLOYEES.
new text end

new text begin (a) The board may hire an executive director of the authority and other employees
the board considers necessary to carry out the program, conduct research, and operate and
maintain facilities of the authority.
new text end

new text begin (b) Persons employed by contractors or lessees are not state employees and may
not participate in state retirement, deferred compensation, insurance, or other plans that
apply to state employees generally and are not subject to regulation by the Campaign
Finance and Public Disclosure Board, provided, however, that any employee of the state
or any employee or faculty member of the University of Minnesota or Minnesota State
Colleges and Universities System who teaches or conducts research at the authority does
not have their status as employees of the state, the University of Minnesota, or Minnesota
State Colleges and Universities System interrupted by virtue of having their employment
activity take place at facilities owned by the authority.
new text end

Sec. 17.

new text begin [32C.04] ACCOUNTS; AUDITS.
new text end

new text begin The authority may establish funds and accounts that it determines to be reasonable
and necessary to conduct the business of the authority. The board shall provide for and
pay the cost of an independent annual audit of its official books and records by the state
auditor. A copy of this audit must be filed with the secretary of state.
new text end

Sec. 18.

new text begin [32C.05] ANNUAL REPORT.
new text end

new text begin The board shall submit a report to the chairs of the senate and house of
representatives agriculture committees and the governor on the activities of the authority
and its contractors and lessees by February 1 of each year. The report must include at
least the following:
new text end

new text begin (1) a description of each of the programs that the authority has provided or
undertaken at some time during the previous year;
new text end

new text begin (2) an identification of the sources of funding in the previous year for the authority's
programs including federal, state, and local government, foundations, gifts, donations,
fees, and all other sources;
new text end

new text begin (3) a description of the administrative expenses of the authority during the previous
year;
new text end

new text begin (4) a listing of the assets and liabilities of the authority at the end of the previous
fiscal year;
new text end

new text begin (5) a description of any changes made to the operational plan during the previous
year; and
new text end

new text begin (6) a description of any newly adopted or significant changes to bylaws, policies,
rules, or programs created or administered by the authority during the previous year.
new text end

new text begin Reports must be made to the legislature as required by section 3.195.
new text end

Sec. 19.

Minnesota Statutes 2010, section 35.0661, subdivision 2, is amended to read:

Subd. 2.

Quarantine zones.

Upon an emergency declaration by the governor
under subdivision 1, the board or any licensed veterinarian designated by the board may
establish quarantine zones of control in any area where a specific animal is deemed by a
licensed veterinarian as likely to be infected with the disease based on an actual veterinary
examination or laboratory testing. Quarantine zones of control new text begin to restrict the movement of
livestock new text end must be the smallest size practicable to prevent the spread of disease and must
exist for the shortest duration consistent with effective disease control. deleted text begin A quarantine zone
of control must not extend beyond a radius of three miles from an animal deemed as likely
to be infected with the disease, unless the board has adopted a rule regarding a specific
disease requiring a larger quarantine zone of control.
deleted text end

Sec. 20.

Minnesota Statutes 2010, section 35.0661, subdivision 3, is amended to read:

Subd. 3.

Restrictions on movement out of quarantine zones.

(a) The board may
issue orders restricting the movement of persons, deleted text begin livestock, deleted text end machinery, and personal
property deleted text begin out of zones deleted text end new text begin off infected premises new text end designated by the board as quarantined under
subdivision 2. The executive director of the board or any licensed veterinarian designated
by the board may issue the orders. An order may be issued upon a determination that
reasonable cause exists to believe that the movement of persons or personal property out
of a quarantine zone will reasonably threaten to transport a dangerous, infectious, or
communicable disease outside of the quarantine zone.

(b) The order must be served upon any person subject to the order. The restrictions
sought by the board on movement out of a quarantine zone must be limited to the greatest
extent possible consistent with the paramount disease control objectives as determined by
the board. An order under this section may be served on any day at any time. The order
must include a notice of the person's rights under this section, including the ability to enter
into an agreement to abide by disease control measures under paragraph (c) and the right
to request a court hearing under paragraph (d).

(c) No person may be restricted by an order under this subdivision for longer than 72
hours, exclusive of Saturdays, Sundays, and legal holidays, so long as the person agrees to
abide by the disease control measures established by the board. The person shall sign an
acknowledgment form prepared by the board evidencing the person's agreement to abide
by the disease control measures established by the board.

(d) A person whose movements are restricted by an order under this subdivision may
seek a district court hearing on the order at any time after it is served on the person. The
hearing may be held by electronic means as soon as possible. The subject of the order may:

(1) contest imposition of the order on grounds that it is an abuse of the board's
discretion under this section; or

(2) seek a variance from it to allow movement of a person inconsistent with the
order, upon a showing that the person would otherwise suffer irreparable harm.

Sec. 21.

Minnesota Statutes 2010, section 41A.105, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin For the purpose of this section:
new text end

new text begin (1) "biobutanol facility" means a facility at which biobutanol is produced; and
new text end

new text begin (2) "biobutanol" means fermentation isobutyl alcohol that is derived from
agricultural products, including potatoes, cereal grains, cheese whey, and sugar beets;
forest products; or other renewable resources, including residue and waste generated
from the production, processing, and marketing of agricultural products, forest products,
and other renewable resources.
new text end

Sec. 22.

Minnesota Statutes 2010, section 41A.12, subdivision 2, is amended to read:

Subd. 2.

Activities authorized.

For the purposes of this program, the commissioner
may issue grants, loans, or other forms of financial assistance. Eligible activities include,
but are not limited to, grants to livestock producers under the livestock investment grant
program under section 17.118, bioenergy awards made by the NextGen Energy Board
under section 41A.105, new text begin cost-share grants for the installation of biofuel blender pumps, new text end and
financial assistance to support other rural economic infrastructure activities.

Sec. 23.

Minnesota Statutes 2010, section 41A.12, subdivision 4, is amended to read:

Subd. 4.

Sunset.

This section expires on June 30, deleted text begin 2013 deleted text end new text begin 2015 new text end .

Sec. 24.

Minnesota Statutes 2010, section 115.03, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Aquatic application of pesticides. new text end

new text begin (a) The agency may issue National
Pollutant Discharge Elimination System permits for pesticide applications to waters of the
United States that are required by federal law or rule. The agency shall not require permits
for aquatic pesticide applications beyond what is required by federal law or rule.
new text end

new text begin (b) The agency shall not regulate or require permits for the terrestrial application
of pesticides.
new text end

Sec. 25.

Minnesota Statutes 2010, section 116.07, subdivision 7d, is amended to read:

Subd. 7d.

Exemption.

new text begin (a) new text end Notwithstanding subdivision 7 or Minnesota Rules,
chapter 7020, to the contrary, and notwithstanding the proximity to public or private
waters, an owner or resident of agricultural land on which livestock have been allowed to
pasture deleted text begin as defined by Minnesota Rules, chapter 7020, deleted text end at any time during the ten-year period
beginning January 1, deleted text begin 1990 deleted text end new text begin 2010 new text end , is permanently exempt from requirements related to
feedlot or manure management on that land for so long as the property remains in pasture.

new text begin (b) For the purposes of this subdivision, "pasture" means areas where livestock graze
on grass or other growing plants. Pasture also means agricultural land where livestock are
allowed to forage during the winter time and which land is used for cropping purposes
in the growing season. In either case, the concentration of animals must be such that a
vegetative cover, whether of grass, growing plants, or crops, is maintained during the
growing season except in the immediate vicinity of temporary supplemental feeding
or watering devices.
new text end

Sec. 26.

Minnesota Statutes 2010, section 223.17, subdivision 6, is amended to read:

Subd. 6.

Financial statements.

deleted text begin For the purpose of fixing or changing the amount of
a required bond or for any other proper reason, deleted text end The commissioner deleted text begin shall deleted text end new text begin may new text end require an
annual financial statement from a licensee which has been prepared in accordance with
generally accepted accounting principles and which meets the following requirements:

(a) The financial statement shall include, but not be limited to the following: (1)
a balance sheet; (2) a statement of income (profit and loss); (3) a statement of retained
earnings; (4) a statement of changes in financial position; and (5) a statement of the dollar
amount of grain purchased in the previous fiscal year of the grain buyer.

(b) The financial statement shall be accompanied by a compilation report of the
financial statement that is prepared by a grain commission firm or a management firm
approved by the commissioner or by an independent public accountant, in accordance with
standards established by the American Institute of Certified Public Accountants. Grain
buyers purchasing less than 150,000 bushels of grain per calendar year may submit a
financial statement prepared by a public accountant who is not an employee or a relative
within the third degree of kindred according to civil law.

(c) The financial statement shall be accompanied by a certification by the chief
executive officer or the chief executive officer's designee of the licensee, under penalty
of perjury, that the financial statement accurately reflects the financial condition of the
licensee for the period specified in the statement.

Only one financial statement must be filed for a chain of warehouses owned or
operated as a single business entity, unless otherwise required by the commissioner. Any
grain buyer having a net worth in excess of $500,000,000 need not file the financial
statement required by this subdivision but must provide the commissioner with a certified
net worth statement. All financial statements filed with the commissioner are private or
nonpublic data as provided in section 13.02.

Sec. 27.

Minnesota Statutes 2010, section 232.22, subdivision 3, is amended to read:

Subd. 3.

Fees; grain buyers and storage account.

There is created in the
agricultural fund an account known as the grain buyers and storage account. The
commissioner shall set the fees for deleted text begin inspections deleted text end new text begin examinations new text end , certifications new text begin , new text end and licenses
under sections 232.20 to 232.25 at levels necessary to pay the costs of administering and
enforcing sections 232.20 to 232.25. All money collected pursuant to sections 232.20
to 232.25 and chapters 233 and 236 shall be paid by the commissioner into the state
treasury and credited to the grain buyers and storage account and is appropriated to the
commissioner for the administration and enforcement of sections 232.20 to 232.25 and
chapters 233 and 236. All money collected pursuant to chapter 231 shall be paid by
the commissioner into the grain buyers and storage account and is appropriated to the
commissioner for the administration and enforcement of chapter 231.

The fees for a license to store grain are as follows:

(a) For a license to store grain, $110 for each home rule charter or statutory city or
town in which a public grain warehouse is operated.

(b) A person with a license to store grain in a public grain warehouse is subject to
an examination fee for each licensed location, based on the following schedule for one
examination:

	Bushel Capacity	Examination Fee
	Less than 150,001	$	300
	150,001 to 250,000	$	425
	250,001 to 500,000	$	545
	500,001 to 750,000	$	700
	750,001 to 1,000,000	$	865
	1,000,001 to 1,200,000	$	1,040
	1,200,001 to 1,500,000	$	1,205
	1,500,001 to 2,000,000	$	1,380
	More than 2,000,000	$	1,555

(c) The fee for the second examination is $55 per hour per examiner for warehouse
operators who choose to have it performed by the commissioner.

(d) A penalty amount not to exceed ten percent of the fees due may be imposed by
the commissioner for each month for which the fees are delinquent.

Sec. 28.

Minnesota Statutes 2010, section 232.22, subdivision 4, is amended to read:

Subd. 4.

Bonding.

new text begin (a) new text end Before a license is issued, the applicant for a public grain
warehouse operator's license shall file with the commissioner a bond in a penal sum
prescribed by the commissioner deleted text begin . The penal sum on a condition one bond shall be
established by rule by the commissioner pursuant to the requirements of chapter 14 for all
grain outstanding on grain warehouse receipts. The penal sum on a condition two bond
shall not be less than $10,000 for each location up to a maximum of five locations. deleted text end new text begin based
on the annual average liability as stated on the statement of grain in storage report and
applying the following amounts:
new text end

new text begin (1) $10,000 for storages with annual average storage liability of more than $0 but
not more than $25,000;
new text end

new text begin (2) $20,000 for storages with annual average storage liability of more than $25,001
but not more than $50,000;
new text end

new text begin (3) $30,000 for storages with annual average storage liability of more than $50,001
but not more than $75,000;
new text end

new text begin (4) $50,000 for storages with annual average storage liability of more than $75,001
but not more than $100,000;
new text end

new text begin (5) $75,000 for storages with annual average storage liability of more than $100,001
but not more than $200,000;
new text end

new text begin (6) $125,000 for storages with annual average storage liability of more than
$200,001 but not more than $300,000;
new text end

new text begin (7) $175,000 for storages with annual average storage liability of more than
$300,001 but not more than $400,000;
new text end

new text begin (8) $225,000 for storages with annual average storage liability of more than
$400,001 but not more than $500,000;
new text end

new text begin (9) $275,000 for storages with annual average storage liability of more than
$500,001 but not more than $600,000;
new text end

new text begin (10) $325,000 for storages with annual average storage liability of more than
$600,001 but not more than $700,000;
new text end

new text begin (11) $425,000 for storages with annual average storage liability of more than
$800,001 but not more than $900,000;
new text end

new text begin (12) $475,000 for storages with annual average storage liability of more than
$900,001 but not more than $1,000,000; and
new text end

new text begin (13) $500,000 for storages with annual average storage liability of more than
$1,000,000.
new text end

new text begin (b) Bonds must be continuous until canceled. To cancel a bond, a surety must provide
90 days' written notice of the bond's termination date to the licensee and the commissioner.
new text end

Sec. 29.

Minnesota Statutes 2010, section 232.22, subdivision 5, is amended to read:

Subd. 5.

Statement of grain in storage; reports.

(a) All public grain warehouse
operators must by deleted text begin the tenth day of each month deleted text end new text begin February 15 of each year new text end file with the
commissioner on deleted text begin forms deleted text end new text begin a form new text end approved by the commissioner a report showing the
new text begin highest monthly new text end net liability of all grain outstanding on grain warehouse receipts deleted text begin as of the
close of business on the last day of deleted text end new text begin that occurred during new text end the preceding deleted text begin month deleted text end new text begin calendar
year new text end . This report shall be used for the purpose of establishing the penal sum of the bond.

new text begin (b) Warehouse operators that are at a maximum bond and want to continue at
maximum bond do not need to file this report.
new text end

deleted text begin (b) If deleted text end new text begin (c) It is a violation of this chapter for new text end any public grain warehouse operator
deleted text begin willfully neglects or refuses deleted text end new text begin to fail new text end to file the report required in clause (a) deleted text begin for two
consecutive months, the commissioner may immediately suspend the person's license
and the licensee must surrender the license to the commissioner. Within 15 days the
licensee may request an administrative hearing subject to chapter 14 to determine if the
license should be revoked. If no request is made within 15 days the commissioner shall
revoke the license deleted text end .

deleted text begin (c) deleted text end new text begin (d) new text end Every public grain warehouse operator shall keep in a place of safety complete
and accurate records and accounts relating to any grain warehouse operated. The records
shall reflect each commodity received and shipped daily, the balance remaining in the
grain warehouse at the close of each business day, a listing of all unissued grain warehouse
receipts in the operator's possession, a record of all grain warehouse receipts issued which
remain outstanding and a record of all grain warehouse receipts which have been returned
for cancellation. Copies of grain warehouse receipts or other documents evidencing
ownership of grain by a depositor, or other liability of the grain warehouse operator, shall
be retained as long as the liability exists but must be kept for a minimum of three years.

deleted text begin (d) deleted text end new text begin (e) new text end Every public grain warehouse operator must maintain in the grain warehouse
at all times grain of proper grade and sufficient quantity to meet delivery obligations on
all outstanding grain warehouse receipts.

Sec. 30.

Minnesota Statutes 2010, section 232.23, subdivision 10, is amended to read:

Subd. 10.

Delivery of grain.

deleted text begin (a) deleted text end On the redemption of a grain warehouse receipt
and payment of all lawful charges, the grain represented by the receipt is immediately
deliverable to the depositor or the depositor's order, and is not subject to any further charge
for storage after demand for delivery has been made and proper facilities for receiving and
shipping the grain have been provided. If delivery has not commenced within 48 hours
after demand has been made and proper facilities have been provided, the public grain
warehouse operator issuing the grain warehouse receipt is liable to the owner in damages
not exceeding two cents per bushel for each day's delay, unless the public grain warehouse
operator makes delivery to different owners in the order demanded as rapidly as it can be
done through ordinary diligence, or unless insolvency has occurred.

deleted text begin (b) If a disagreement arises between the person receiving and the person delivering
the grain at a public grain warehouse in this state as to the proper grade or dockage of any
grain, an average sample of at least three quarts of the grain in dispute may be taken by
either or both of the persons interested. The sample shall be certified by both the owner
and the public grain warehouse operator as being true samples of the grain in dispute
on the delivery day. The samples shall be forwarded in a suitable airtight container by
parcel post or express, prepaid, with the name and address of both parties, to the head of
the grain inspection program of the Department of Agriculture, who shall, upon request,
examine the grain, and determine what grade or dockage the samples of grain are entitled
to under the inspection rules. Before the results of the inspection are released to the person
requesting the inspection, the person shall pay the required fee. The fee shall be the same
as that required for similar services rendered by the grain inspection program.
deleted text end

Sec. 31.

Minnesota Statutes 2010, section 232.24, subdivision 1, is amended to read:

Subdivision 1.

Schedule of deleted text begin inspection deleted text end new text begin examination new text end .

A licensee under sections
232.20 to 232.25 is subject to two deleted text begin audits deleted text end new text begin examinations new text end annually conducted by the
commissioner or the agricultural marketing service of the United States Department of
Agriculture. The commissioner may, by rule, authorize one deleted text begin audit deleted text end new text begin examination new text end to be
conducted by a qualified nongovernmental unit.

Sec. 32.

Minnesota Statutes 2010, section 232.24, subdivision 2, is amended to read:

Subd. 2.

Financial reports.

A licensee under sections 232.20 to 232.25 new text begin upon request
new text end must provide to the commissioner a copy of the financial reports of an audit conducted by
a qualified nongovernmental unit containing information the commissioner requires.

Sec. 33.

Minnesota Statutes 2010, section 236.02, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Statement of grain in storage; reports. new text end

new text begin (a) Annually by February 15
each grain bank operator must file with the commissioner on a form approved by the
commissioner a report showing the highest monthly net liability of all grain outstanding
on grain bank receipts that occurred during the preceding calendar year. This report must
be used for the purpose of establishing the sum of the bond.
new text end

new text begin (b) Grain bank operators that are at maximum bond and want to continue at
maximum bond do not need to file this report.
new text end

new text begin (c) It is a violation of this chapter for a public grain bank operator to fail to file
the report required in clause (a).
new text end

Sec. 34.

Minnesota Statutes 2010, section 236.02, subdivision 5, is amended to read:

Subd. 5.

deleted text begin Bond deleted text end new text begin Bonding new text end .

deleted text begin A license may not be issued for the operation of a
grain bank until the applicant has filed with the department a bond in a sum set by the
department. The bond may not be less than $1,500 for each license and must at all times
be large enough to protect the holders of outstanding grain bank receipts. Bonds must be
filed annually and cover the period of the grain bank license. deleted text end new text begin (a) Before a license is issued,
the applicant for a grain bank operator's license shall file with the commissioner a bond in
a penal sum prescribed by the commissioner based on the annual average liability as stated
on the statement of grain in storage report and applying the following amounts:
new text end

new text begin (1) $1,500 for storages with annual average storage liability of more than $0 but not
more than $5,000;
new text end

new text begin (2) $3,000 for storages with annual average storage liability of more than $5,001 but
not more than $10,000;
new text end

new text begin (3) $8,000 for storages with annual average storage liability of more than $10,001
but not more than $25,000;
new text end

new text begin (4) $15,000 for storages with annual average storage liability of more than $25,001
but not more than $50,000;
new text end

new text begin (5) $35,000 for storages with annual average storage liability of more than $50,001
but not more than $100,000;
new text end

new text begin (6) $75,000 for storages with annual average storage liability of more than $100,001
but not more than $200,000;
new text end

new text begin (7) $125,000 for storages with annual average storage liability of more than
$200,001 but not more than $300,000; and
new text end

new text begin (8) $150,000 for storages with annual average storage liability of more than
$300,001.
new text end

new text begin (b) Bonds must be continuous until canceled. To cancel a bond, a surety must provide
90 days' written notice of the bond's termination date to the licensee and the commissioner.
new text end

Bonds must run to the state of Minnesota and be for the benefit of all persons storing
grain in a grain bank. They must be conditioned upon the faithful performance by the
grain bank operator of the law relating to the operation of grain banks by the grain bank
operator and related rules of the department. deleted text begin The department may require increases in
the amounts of bonds as it considers necessary for the protection of grain bank receipt
holders. deleted text end The surety of grain bank bonds must be a corporate surety company authorized to
transact business in Minnesota.

Sec. 35.

Laws 2011, chapter 14, section 6, is amended by adding an effective date to
read:

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from April 16, 2011.
new text end

Sec. 36. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2010, sections 17B.01; 17B.02; 17B.03; 17B.04; 17B.041;
17B.0451; 17B.048; 17B.05; 17B.06; 17B.07; 17B.10; 17B.11; 17B.12; 17B.13; 17B.14;
17B.15, subdivisions 1 and 3; 17B.16; 17B.17; 17B.18; 17B.20; 17B.22, subdivisions 1
and 2; 17B.28; 17B.29; 232.24, subdivision 3; 395.14; 395.15; 395.16; 395.17; 395.18;
395.19; 395.20; 395.21; 395.22; 395.23; and 395.24, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 1505.0780; 1505.0810; 1562.0100, subparts 3, 4, 5,
6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25; 1562.0200;
1562.0700, subparts 1b and 3; 1562.0900; and 1562.1300, new text end new text begin are repealed.
new text end