HF 678

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to agriculture; providing risk management, 
  1.3             tax relief, right-to-farm, and technology development 
  1.4             assistance; appropriating money; amending Minnesota 
  1.5             Statutes 1998, sections 3.7371, subdivisions 1, 2, 3, 
  1.6             and 5; 17.115, by adding a subdivision; 97B.655, 
  1.7             subdivision 1; 123B.55; and 126C.17, subdivision 10; 
  1.8             proposing coding for new law in Minnesota Statutes, 
  1.9             chapter 290. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11                             ARTICLE 1 
  1.12                          RISK MANAGEMENT 
  1.13     Section 1.  [CROP OR REVENUE INSURANCE ASSISTANCE.] 
  1.14     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
  1.15  subdivision apply to this section. 
  1.16     (b) "Commissioner" means the commissioner of agriculture. 
  1.17     (c) "Disaster county" means a county that was declared to 
  1.18  be a disaster county by the federal government in 1997 or 1998. 
  1.19     (d) "Farmer" means a natural person residing in Minnesota 
  1.20  who operates a family farm as defined in Minnesota Statutes, 
  1.21  section 500.24, subdivision 2, located wholly or in part in a 
  1.22  disaster county.  "Farmer" also means a resident who is a 
  1.23  shareholder in a family farm corporation or a partner in a 
  1.24  family farm partnership as defined in Minnesota Statutes, 
  1.25  section 500.24, subdivision 2, located wholly or in part in a 
  1.26  disaster county. 
  1.27     Subd. 2.  [PROGRAM ANNOUNCEMENT.] As soon as possible, but 
  2.1   no later than 30 days after the effective date of this section, 
  2.2   the commissioner shall announce procedures and distribute 
  2.3   application forms for the insurance assistance program in this 
  2.4   section. 
  2.5      Subd. 3.  [ELIGIBILITY.] A farmer is eligible for state 
  2.6   assistance under this section if the crop covered by the 
  2.7   insurance is located in a disaster county and the farmer or the 
  2.8   farmer's revenue insurance or federal crop insurance agent 
  2.9   submits a properly completed application for assistance to the 
  2.10  commissioner on forms provided by the commissioner on or before 
  2.11  December 31, 1999. 
  2.12     Subd. 4.  [REIMBURSEMENT RATE, PRIORITY, AND MAXIMUM 
  2.13  ASSISTANCE.] (a) From funds appropriated for purposes of this 
  2.14  section, the commissioner shall provide reimbursement to an 
  2.15  eligible farmer for 50 percent of premiums and administrative 
  2.16  fees paid for revenue insurance or federal crop insurance on 
  2.17  crops grown in a disaster county for the 1999 growing season.  
  2.18  The maximum reimbursement available to any farmer, or in the 
  2.19  case of a family farm corporation or a family farm partnership, 
  2.20  to the family farm corporation or partnership, is $4,000. 
  2.21     (b) Properly completed applications for revenue insurance 
  2.22  or federal crop insurance assistance take priority in the order 
  2.23  in which they are received by the commissioner. 
  2.24     (c) The farmer must be listed as the payee, or one of the 
  2.25  payees, on the reimbursement check. 
  2.26     Sec. 2.  [APPROPRIATIONS.] 
  2.27     Subdivision 1.  [REVENUE INSURANCE OR FEDERAL CROP 
  2.28  INSURANCE ASSISTANCE.] $8,800,000 is appropriated to the 
  2.29  commissioner of agriculture for purposes of section 1 from the 
  2.30  budget reserve and cash flow account under Minnesota Statutes, 
  2.31  section 16A.152.  Up to $....... of this appropriation is 
  2.32  available for necessary program administration costs of the 
  2.33  department of agriculture.  
  2.34     Subd. 2.  [CROP DISEASE RESEARCH.] $1,600,000 is 
  2.35  appropriated from the general fund to the University of 
  2.36  Minnesota agricultural experiment station for research into 
  3.1   wheat and barley scab, soybean mold, and other crop diseases. 
  3.2      Subd. 3.  [ALTERNATIVE CROPS.] $1,000,000 is appropriated 
  3.3   from the general fund to the Agricultural Utilization Research 
  3.4   Institute to provide technical assistance and grants to 
  3.5   producers to move towards producing alternative crops.  
  3.6   Technical assistance and grants under this program must be 
  3.7   coordinated with programs of the department of agriculture. 
  3.8      Subd. 4.  [MARKETING TRAINING.] $2,000,000 is appropriated 
  3.9   from the general fund to the Agricultural Utilization Research 
  3.10  Institute to provide technical assistance and grants to 
  3.11  producers for farm-to-market initiatives including livestock 
  3.12  processing cooperatives and for initial project assessments and 
  3.13  feasibility studies.  Technical assistance and grants under this 
  3.14  program must be coordinated with programs of the department of 
  3.15  agriculture. 
  3.16     Subd. 5.  [AVAILABILITY.] The appropriations in this 
  3.17  section are available until June 30, 2001. 
  3.18     Sec. 3.  [EFFECTIVE DATE.] 
  3.19     This article is effective June 1, 1999. 
  3.20                             ARTICLE 2  
  3.21                             TAX RELIEF 
  3.22     Section 1.  [AGRICULTURAL PROPERTY TAX RELIEF AND 
  3.23  ASSISTANCE.] 
  3.24     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
  3.25  subdivision apply to this section. 
  3.26     (b) "Commissioner" means the commissioner of revenue. 
  3.27     (c) "Eligible farmer" means a farmer that (1) qualified for 
  3.28  the federal earned income tax credit under section 32 of the 
  3.29  Internal Revenue Code for the 1998 tax year; or (2) had a 
  3.30  farming loss for the 1998 tax year determined under section 
  3.31  172(i) of the Internal Revenue Code, except that only income and 
  3.32  deductions attributable to farming activities for which the 
  3.33  person meets the definition of farmer under paragraph (e) apply. 
  3.34     (d) "Farm service agency" means the United States Farm 
  3.35  Service Agency. 
  3.36     (e) "Farmer" means a person who produces an agricultural 
  4.1   crop or livestock and is certified by the farm service agency as 
  4.2   bearing a percentage of the risk for the production operation. 
  4.3      (f) "Internal Revenue Code" means the Internal Revenue Code 
  4.4   of 1986, as amended through December 31, 1998. 
  4.5      (g) "Livestock" means cattle, hogs, poultry, and sheep. 
  4.6      Subd. 2.  [PAYMENT TO FARMERS.] An eligible farmer may 
  4.7   apply to the commissioner by April 20, 1999, for a payment as 
  4.8   provided under this subdivision.  The payment is equal to $4 for 
  4.9   every acre in Minnesota on which the farmer produced an 
  4.10  agricultural crop for crop year 1998 as certified by the farm 
  4.11  service agency.  The commissioner shall prepare application 
  4.12  forms for the payment and ensure that they are available 
  4.13  throughout the state.  To receive a payment under this 
  4.14  subdivision, a farmer must include with the application:  (1) a 
  4.15  certification from the farm service agency of the number of 
  4.16  acres farmed including any percentage of risk for particular 
  4.17  acres; and (2) any federal income tax forms or schedules or 
  4.18  other information for the 1998 tax year the commissioner 
  4.19  requires to determine eligibility for the payment under this 
  4.20  section.  The commissioner shall make the payment to each 
  4.21  eligible farmer by May 15, 1999. 
  4.22     Subd. 3.  [REFUND IN LIEU OF PAYMENT.] In lieu of the per 
  4.23  acre payment under subdivision 2, an eligible farmer may receive 
  4.24  a property tax refund under subdivisions 4 to 8.  To qualify, 
  4.25  the farmer must apply for the refund. 
  4.26     Subd. 4.  [REFUND AMOUNT.] The refund equals the full 
  4.27  amount of the property tax payment due and payable on May 15, 
  4.28  1999, on class 1b agricultural homestead property or class 2a 
  4.29  agricultural homestead property as defined in Minnesota 
  4.30  Statutes, section 273.13, but not to exceed 160 acres, and 
  4.31  excluding that portion of the tax attributable to the house, 
  4.32  garage, and surrounding acre of land.  If a portion of the 160 
  4.33  acres was leased for the 1998 agricultural production year, the 
  4.34  refund amount shall be prorated so that only the portion of the 
  4.35  property which was not leased for the 1998 agricultural 
  4.36  production year qualifies for the refund.  
  5.1      Subd. 5.  [CERTIFICATION.] The commissioner shall develop 
  5.2   and distribute a form by March 1, 1999, for use by the county 
  5.3   auditors to ascertain qualification for the refund under 
  5.4   subdivisions 4 to 8.  The form shall require the property owner 
  5.5   to certify the percentage of that property, if any, that was 
  5.6   leased to anyone for the 1998 agricultural production year.  The 
  5.7   property owner shall file the form with the county auditor by 
  5.8   March 15, 1999.  
  5.9      Subd. 6.  [VERIFICATION.] The county auditor shall 
  5.10  determine the amount of the refund for all qualifying properties 
  5.11  in the county for which the owner has applied under subdivision 
  5.12  5.  By April 10, 1999, the county auditor shall notify all 
  5.13  applicants of the amount of the refund. 
  5.14     Subd. 7.  [CERTIFICATION AND PAYMENT.] By April 20, 1999, 
  5.15  an eligible farmer applying for the refund under subdivisions 4 
  5.16  to 8 shall send the commissioner:  (1) a copy of the 
  5.17  certification that the taxpayer received from the county 
  5.18  auditor; and (2) any federal income tax forms or schedules or 
  5.19  other information for the 1998 tax year the commissioner 
  5.20  requires to determine eligibility for the refund under 
  5.21  subdivisions 4 to 8.  The commissioner shall issue a refund to 
  5.22  each qualifying taxpayer by May 15, 1999. 
  5.23     Subd. 8.  [PROPERTY TAX REFUND.] Taxpayers benefiting from 
  5.24  the refund under subdivisions 4 to 8 must deduct the amount of 
  5.25  the refund from the net property taxes payable when applying for 
  5.26  a property tax refund under Minnesota Statutes 1998, section 
  5.27  290A.04, subdivision 2. 
  5.28     Subd. 9.  [APPROPRIATION.] $40,000,000 is appropriated from 
  5.29  the general fund to the commissioner of revenue for fiscal year 
  5.30  1999 to make the payments required under this section. 
  5.31     Sec. 2.  Minnesota Statutes 1998, section 123B.55, is 
  5.32  amended to read: 
  5.33     123B.55 [DEBT SERVICE LEVY.] 
  5.34     A district may levy the amounts necessary to make payments 
  5.35  for bonds issued and for interest on them, including the bonds 
  5.36  and interest on them, issued as authorized by Minnesota Statutes 
  6.1   1974, section 275.125, subdivision 3, clause (7)(C); and the 
  6.2   amounts necessary for repayment of debt service loans and 
  6.3   capital loans, minus the amount of debt service equalization 
  6.4   revenue of the district.  A levy authorized under this section 
  6.5   must be spread on the net tax capacity of the district excluding 
  6.6   the net tax capacity of class 2a homestead agricultural land and 
  6.7   class 2b nonhomestead agricultural land classified under section 
  6.8   273.13, subdivision 23, but including the net tax capacity of 
  6.9   the house, garage, and one acre of land. 
  6.10     Sec. 3.  Minnesota Statutes 1998, section 126C.17, 
  6.11  subdivision 10, is amended to read: 
  6.12     Subd. 10.  [SCHOOL REFERENDUM LEVY; MARKET VALUE.] 
  6.13  Notwithstanding the provisions of subdivision 9, a school 
  6.14  referendum levy approved after November 1, 1992, for taxes 
  6.15  payable in 1993 and thereafter, must be levied against the 
  6.16  referendum market value of all taxable property as defined in 
  6.17  section 126C.01, subdivision 3, except that the market value of 
  6.18  class 2a homestead agricultural land and class 2b nonhomestead 
  6.19  agricultural land classified under section 273.13, subdivision 
  6.20  23, other than the house, garage, and one acre of land shall be 
  6.21  excluded.  Any referendum levy amount subject to the 
  6.22  requirements of this subdivision must be certified separately to 
  6.23  the county auditor under section 275.07. 
  6.24     All other provisions of subdivision 9 that do not conflict 
  6.25  with this subdivision apply to referendum levies under this 
  6.26  subdivision. 
  6.27     Sec. 4.  [290.033] [AVERAGING OF FARM INCOME.] 
  6.28     An individual engaged in a farming business as defined in 
  6.29  section 1301 of the Internal Revenue Code who elects to average 
  6.30  income under section 1301 of the Internal Revenue Code for 
  6.31  federal income tax purposes may elect to average income under 
  6.32  this section.  The tax imposed under section 290.06, subdivision 
  6.33  2c, shall be computed in like manner as the tax imposed under 
  6.34  section 1301 of the Internal Revenue Code, except that the tax 
  6.35  rates in section 290.06 shall apply and that references to 
  6.36  section 290.06 shall be substituted for references to "section 
  7.1   1," in section 1301 of the Internal Revenue Code. 
  7.2      Sec. 5.  [EFFECTIVE DATE.] 
  7.3      Section 1 is effective the day following final enactment.  
  7.4      Sections 2 and 3 are effective for bond referenda passed 
  7.5   after the date of final enactment. 
  7.6      Section 4 is effective for taxable years beginning after 
  7.7   December 31, 1998. 
  7.8                              ARTICLE 3 
  7.9                           RIGHT-TO-HARVEST 
  7.10     Section 1.  Minnesota Statutes 1998, section 3.7371, 
  7.11  subdivision 1, is amended to read: 
  7.12     Subdivision 1.  [AUTHORIZATION.] Notwithstanding section 
  7.13  3.736, subdivision 3, paragraph (e), or any other law, a person 
  7.14  who owns an agricultural crop shall be compensated by the 
  7.15  commissioner of agriculture for an agricultural crop that is 
  7.16  damaged or destroyed by elk or deer as provided in this section. 
  7.17     Sec. 2.  Minnesota Statutes 1998, section 3.7371, 
  7.18  subdivision 2, is amended to read: 
  7.19     Subd. 2.  [CLAIM FORM.] The crop owner must prepare a claim 
  7.20  on forms provided by the commissioner and available at the 
  7.21  county extension agent's office.  The claim form must be filed 
  7.22  with the commissioner.  A claim form may not be filed for crop 
  7.23  damage or destruction that occurs before June 3, 1987, or in the 
  7.24  case of damage or destruction by deer, before January 1, 1999.  
  7.25     Sec. 3.  Minnesota Statutes 1998, section 3.7371, 
  7.26  subdivision 3, is amended to read: 
  7.27     Subd. 3.  [COMPENSATION.] The crop owner is entitled to the 
  7.28  target price or the market price, whichever is greater, of the 
  7.29  damaged or destroyed crop plus adjustments for yield loss 
  7.30  determined according to agricultural stabilization and 
  7.31  conservation service programs for individual farms, adjusted 
  7.32  annually, as determined by the commissioner, upon recommendation 
  7.33  of the county extension agent for the owner's county.  The 
  7.34  commissioner, upon recommendation of the agent, shall determine 
  7.35  whether the crop damage or destruction is caused by elk or deer 
  7.36  and, if so, the amount of the crop that is damaged or 
  8.1   destroyed.  In any calendar year, a crop owner may not be 
  8.2   compensated for a damaged or destroyed crop that is less than 
  8.3   $100 in value and may be compensated up to $20,000, as 
  8.4   determined under this section, if normal harvest procedures for 
  8.5   the area are followed. 
  8.6      Sec. 4.  Minnesota Statutes 1998, section 3.7371, 
  8.7   subdivision 5, is amended to read: 
  8.8      Subd. 5.  [DECISION ON CLAIMS; OPENING LAND TO HUNTING.] If 
  8.9   the commissioner finds that the crop owner has shown that the 
  8.10  damage or destruction of the owner's crop was caused more 
  8.11  probably than not by elk or deer, the commissioner shall pay 
  8.12  compensation as provided in this section and the rules of the 
  8.13  commissioner.  Total compensation to all claimants shall not 
  8.14  exceed the amount of funds appropriated for Laws 1987, chapter 
  8.15  373 the purpose by the legislature.  A crop owner who receives 
  8.16  compensation under this section may, by written permission, 
  8.17  permit hunting on the land at the landowner's discretion.  
  8.18     Sec. 5.  Minnesota Statutes 1998, section 97B.655, 
  8.19  subdivision 1, is amended to read: 
  8.20     Subdivision 1.  [OWNERS AND OCCUPANTS MAY TAKE CERTAIN 
  8.21  ANIMALS.] A person may take mink, squirrel, rabbit, hare, 
  8.22  raccoon, lynx, bobcat, fox, opossum, muskrat, or beaver or no 
  8.23  more than one deer per year on land owned or occupied by the 
  8.24  person where the animal is causing damage.  The person may take 
  8.25  the animal without a license and in any manner except by poison, 
  8.26  or artificial lights in the closed season.  Raccoons may be 
  8.27  taken under this subdivision with artificial lights during open 
  8.28  season.  A person that kills mink, raccoon, lynx, bobcat, fox, 
  8.29  opossum, muskrat, deer, or beaver under this subdivision must 
  8.30  notify a conservation officer or employee of the division within 
  8.31  24 hours after the animal is killed. 
  8.32     Sec. 6.  [APPROPRIATION.] 
  8.33     $500,000 is appropriated from the general fund to the 
  8.34  commissioner of agriculture for payments under Minnesota 
  8.35  Statutes, section 3.7371, for damage or destruction by deer.  
  8.36  This appropriation is available until June 30, 2001. 
  9.1                              ARTICLE 4 
  9.2                        TECHNOLOGY DEVELOPMENT 
  9.3      Section 1.  Minnesota Statutes 1998, section 17.115, is 
  9.4   amended by adding a subdivision to read: 
  9.5      Subd. 5.  [FEEDLOT MANURE PROCESSING AND ODOR CONTROL 
  9.6   TECHNOLOGY.] Notwithstanding subdivision 2, paragraphs (b) and 
  9.7   (c), interest-free loans up to $200,000 may be made under this 
  9.8   section to any resident of Minnesota for feedlot manure 
  9.9   processing and odor control technology projects.  Loans under 
  9.10  this subdivision may be used as a match for federal loans or 
  9.11  grants.  Money from repayment of loans must be deposited in the 
  9.12  revolving loan account for this program to be used for future 
  9.13  projects.  
  9.14     Sec. 2.  [APPROPRIATIONS.] 
  9.15     Subdivision 1.  [FEEDLOT MANURE PROCESSING AND ODOR CONTROL 
  9.16  TECHNOLOGY LOANS.] $2,000,000 is appropriated from the general 
  9.17  fund to the commissioner of agriculture to be used for loans 
  9.18  under section 1.  This appropriation is available until June 30, 
  9.19  2001. 
  9.20     Subd. 2.  [FEEDLOT UPGRADES.] $10,000,000 is appropriated 
  9.21  from the general fund to the board of water and soil resources 
  9.22  for grants to assist operators of small- to mid-sized farms in 
  9.23  upgrading their feedlots to meet new environmental standards.  
  9.24  This appropriation is available until June 30, 2001.