HF 1218

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 17.4988; 
  1.8             18.525; 18.78; 18.79, subdivisions 2, 3, 5, 6, 9, 10, 
  1.9             11; 18.81, subdivisions 2, 3; 18.84, subdivision 3; 
  1.10            18.85; 18.86; 18B.26, subdivision 3; 21.89, 
  1.11            subdivision 2; 21.90, subdivision 2; 21.901; 28A.08, 
  1.12            subdivision 3; 28A.085, subdivision 1; 28A.09, 
  1.13            subdivision 1; 32.394, subdivisions 8, 8b, 8d; 37.03, 
  1.14            subdivision 1; 41A.09, subdivisions 2a, 3a; 116O.09, 
  1.15            subdivisions 1, 1a, 2, 3, 8, 9, 12, 13, by adding a 
  1.16            subdivision; proposing coding for new law in Minnesota 
  1.17            Statutes, chapters 18; 21; repealing Minnesota 
  1.18            Statutes 2002, sections 17.101, subdivision 5; 17.110; 
  1.19            18.51; 18.52; 18.53; 18.54; 18.79, subdivisions 1, 4, 
  1.20            7, 8; 18B.065, subdivision 5; 41A.09, subdivisions 1, 
  1.21            1a, 6, 7, 8. 
  1.22  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.23  Section 1.  [AGRICULTURE AND RURAL DEVELOPMENT APPROPRIATIONS.] 
  1.24     The sums shown in the columns marked "APPROPRIATIONS" are 
  1.25  appropriated from the general fund, or another named fund, to 
  1.26  the agencies and for the purposes specified in this act, to be 
  1.27  available for the fiscal years indicated for each purpose.  The 
  1.28  figures "2004" and "2005," where used in this act, mean that the 
  1.29  appropriation or appropriations listed under them are available 
  1.30  for the year ending June 30, 2004, or June 30, 2005, 
  1.31  respectively.  The term "the first year" means the year ending 
  1.32  June 30, 2004, and the term "the second year" means the year 
  1.33  ending June 30, 2005. 
  2.1                           SUMMARY BY FUND
  2.2                             2004          2005           TOTAL
  2.3   General            $   39,558,000 $   38,379,000 $   77,937,000
  2.4   Environmental             353,000        353,000        706,000
  2.5   TOTAL              $   39,911,000 $   38,732,000 $   78,643,000
  2.6                                              APPROPRIATIONS 
  2.7                                          Available for the Year 
  2.8                                              Ending June 30 
  2.9                                             2004         2005 
  2.10  Sec. 2.  DEPARTMENT OF AGRICULTURE
  2.11  Subdivision 1.  Total  
  2.12  Appropriation                         36,291,000     35,112,000 
  2.13                Summary by Fund
  2.14  General              35,938,000    34,759,000
  2.15  Environmental           353,000       353,000
  2.16  The amounts that may be spent from this 
  2.17  appropriation for each program are 
  2.18  specified in the following subdivision. 
  2.19  Subd. 2.  Protection Services
  2.20       9,138,000      9,138,000 
  2.21                Summary by Fund
  2.22  General               8,785,000     8,785,000
  2.23  Environmental           353,000       353,000
  2.24  $353,000 the first year and $353,000 
  2.25  the second year are from the 
  2.26  environmental fund for administrative 
  2.27  funding for the voluntary cleanup 
  2.28  program. 
  2.29  Subd. 3.  Agricultural Marketing
  2.30  and Development
  2.31       5,209,000      5,209,000 
  2.32  $71,000 the first year and $71,000 the 
  2.33  second year are for transfer to the 
  2.34  Minnesota grown matching account and 
  2.35  may be used as grants for Minnesota 
  2.36  grown promotion under Minnesota 
  2.37  Statutes, section 17.109.  Grants may 
  2.38  be made for one year.  Notwithstanding 
  2.39  Minnesota Statutes, section 16A.28, the 
  2.40  appropriations encumbered under 
  2.41  contract on or before June 30, 2005, 
  2.42  for Minnesota grown grants in this 
  2.43  subdivision are available until June 
  2.44  30, 2007. 
  2.45  $80,000 the first year and $80,000 the 
  2.46  second year are for grants to farmers 
  2.47  for demonstration projects involving 
  2.48  sustainable agriculture as authorized 
  2.49  in Minnesota Statutes, section 17.116.  
  2.50  Of the amount for grants, up to $20,000 
  3.1   may be used for dissemination of 
  3.2   information about the demonstration 
  3.3   projects.  Notwithstanding Minnesota 
  3.4   Statutes, section 16A.28, the 
  3.5   appropriations encumbered under 
  3.6   contract on or before June 30, 2005, 
  3.7   for sustainable agriculture grants in 
  3.8   this subdivision are available until 
  3.9   June 30, 2007. 
  3.10  Subd. 4.  Ethanol Development 
  3.11      17,663,000     16,484,000 
  3.12  The total payments from the ethanol 
  3.13  development account to all producers 
  3.14  may not exceed $17,663,000 for fiscal 
  3.15  year 2004 and $16,484,000 for fiscal 
  3.16  year 2005.  If the total amount for 
  3.17  which all producers are eligible in a 
  3.18  quarter exceeds the amount available 
  3.19  for payments, the commissioner shall 
  3.20  make the payments on a pro rata basis. 
  3.21  Subd. 5.  Administration and
  3.22  Financial Assistance   
  3.23       4,281,000      4,281,000 
  3.24  $805,000 the first year and $805,000 
  3.25  the second year are for continuation of 
  3.26  the dairy development and profitability 
  3.27  enhancement and dairy business planning 
  3.28  grant programs established under Laws 
  3.29  1997, chapter 216, section 7, 
  3.30  subdivision 2 and Laws 2001, First 
  3.31  Special Session chapter 2, section 9, 
  3.32  subdivision 2.  The commissioner may 
  3.33  allocate the available sums among 
  3.34  permissible activities, including 
  3.35  efforts to improve the quality of milk 
  3.36  produced in the state, in the 
  3.37  proportions which the commissioner 
  3.38  deems most beneficial to Minnesota's 
  3.39  dairy farmers.  The commissioner must 
  3.40  submit a work plan detailing plans for 
  3.41  expenditures under this program to the 
  3.42  chairs of the house and senate 
  3.43  committees dealing with agricultural 
  3.44  policy and budget on or before the 
  3.45  start of each fiscal year.  If 
  3.46  significant changes are made to the 
  3.47  plans in the course of the year, the 
  3.48  commissioner must notify the chairs. 
  3.49  $50,000 the first year and $50,000 the 
  3.50  second year are for the Northern Crops 
  3.51  Institute.  These appropriations may be 
  3.52  spent to purchase equipment. 
  3.53  $2,000 the first year and $1,000 the 
  3.54  second year are for family farm 
  3.55  security interest payment adjustments.  
  3.56  If the appropriation for either year is 
  3.57  insufficient, the appropriation for the 
  3.58  other year is available for it.  No new 
  3.59  loans may be approved in fiscal year 
  3.60  2004 or 2005. 
  3.61  Sec. 3.  BOARD OF ANIMAL
  3.62  HEALTH                                 2,403,000      2,403,000 
  4.1   Sec. 4.  AGRICULTURAL UTILIZATION
  4.2   RESEARCH INSTITUTE                     1,217,000      1,217,000
  4.3      Sec. 5.  Minnesota Statutes 2002, section 17.4988, is 
  4.4   amended to read: 
  4.5      17.4988 [LICENSE AND INSPECTION FEES.] 
  4.6      Subdivision 1.  [REQUIREMENTS FOR ISSUANCE.] A permit or 
  4.7   license must be issued by the commissioner if the requirements 
  4.8   of law are met and the license and permit fees specified in this 
  4.9   section are paid. 
  4.10     Subd. 2.  [AQUATIC FARMING LICENSE.] (a) The annual fee for 
  4.11  an aquatic farming license is $70 $220. 
  4.12     (b) The aquatic farming license may contain endorsements 
  4.13  for the rights and privileges of the following licenses under 
  4.14  the game and fish laws.  The endorsement must be made upon 
  4.15  payment of the license fee prescribed in section 97A.475 for the 
  4.16  following licenses: 
  4.17     (1) minnow dealer license; 
  4.18     (2) minnow retailer license for sale of minnows as bait; 
  4.19     (3) minnow exporting license; 
  4.20     (4) aquatic farm vehicle endorsement, which includes a 
  4.21  minnow dealer vehicle license, a minnow retailer vehicle 
  4.22  license, an exporting minnow vehicle license, and a fish vendor 
  4.23  license; 
  4.24     (5) sucker egg taking license; and 
  4.25     (6) game fish packers license. 
  4.26     Subd. 3.  [INSPECTION FEES.] The fees for the following 
  4.27  inspections are:  
  4.28     (1) initial inspection of each water to be licensed, $50; 
  4.29     (2) fish health inspection and certification, $20 $65 plus 
  4.30  $100 $315 per lot thereafter; and 
  4.31     (3) initial inspection for containment and quarantine 
  4.32  facility inspections, $50. 
  4.33     Subd. 4.  [AQUARIUM FACILITY.] (a) A person operating a 
  4.34  commercial aquarium facility must have a commercial aquarium 
  4.35  facility license issued by the commissioner if the facility 
  4.36  contains species of aquatic life that are for sale and that are 
  5.1   present in waters of the state.  The commissioner may require an 
  5.2   aquarium facility license for aquarium facilities importing or 
  5.3   holding species of aquatic life that are for sale and that are 
  5.4   not present in Minnesota if those species can survive in waters 
  5.5   of the state.  The fee for an aquarium facility license 
  5.6   is $19 $60. 
  5.7      (b) Game fish transferred by an aquarium facility must be 
  5.8   accompanied by a receipt containing the information required on 
  5.9   a shipping document by section 17.4985, subdivision 3, paragraph 
  5.10  (b). 
  5.11     [EFFECTIVE DATE.] This section is effective March 1, 2004. 
  5.12     Sec. 6.  [18.511] [FEE SCHEDULE.] 
  5.13     Subdivision 1.  [ESTABLISHMENT OF FEES.] The commissioner 
  5.14  shall establish fees sufficient to allow for the administration 
  5.15  and enforcement of the provisions of this chapter and rules 
  5.16  adopted under this chapter, including the portion of general 
  5.17  support costs and statewide indirect costs of the agency 
  5.18  attributable to that function, with a reserve sufficient for up 
  5.19  to six months.  The commissioner shall review the fee schedule 
  5.20  annually in consultation with the Minnesota nursery and 
  5.21  landscape regulatory advisory committee.  For the certificate 
  5.22  year beginning January 1, 2004, the fees are as described in 
  5.23  this section. 
  5.24     Subd. 2.  [NURSERY STOCK GROWER CERTIFICATE.] (a) A nursery 
  5.25  stock grower shall pay an annual fee before the commissioner 
  5.26  issues a nursery stock grower's certificate.  The fee is based 
  5.27  on the area of all acreage on which nursery stock is grown for 
  5.28  certification as follows: 
  5.29     (1) less than one-half acre, $150; 
  5.30     (2) over one-half acre to and including two acres, $200; 
  5.31     (3) over two acres to and including five acres, $300; 
  5.32     (4) over five acres to and including ten acres, $350; 
  5.33     (5) over ten acres to and including 20 acres, $500; 
  5.34     (6) over 20 acres to and including 40 acres, $650; 
  5.35     (7) over 40 acres to and including 50 acres, $800; 
  5.36     (8) over 50 acres to and including 200 acres, $1,100; 
  6.1      (9) over 200 acres to and including 500 acres, $1,500; and 
  6.2      (10) over 500 acres, $1,500 plus $2 per acre for each 
  6.3   additional acre. 
  6.4      (b) In addition to the fees in paragraph (a), a penalty of 
  6.5   ten percent of the fee due must be charged for each month that 
  6.6   the fee is delinquent for any application for renewal not 
  6.7   received by January 1 of the year following expiration of a 
  6.8   certificate. 
  6.9      Subd. 3.  [NURSERY STOCK DEALER, CERTIFICATE.] (a) A 
  6.10  nursery stock dealer shall pay an annual fee to obtain a nursery 
  6.11  dealer's certificate.  The fee shall be based on the dealer's 
  6.12  gross sales of nursery stock per location during the preceding 
  6.13  certificate year.  A certificate applicant operating for the 
  6.14  first time shall pay the minimum fee.  The fees are per sales 
  6.15  location as follows: 
  6.16     (1) gross sales up to $20,000, $150; 
  6.17     (2) gross sales over $20,000 up to $100,000, $175; 
  6.18     (3) gross sales over $100,000 up to $250,000, $300; 
  6.19     (4) gross sales over $250,000 up to $500,000, $425; 
  6.20     (5) gross sales over $500,000 up to $1,000,000, $550; 
  6.21     (6) gross sales over $1,000,000 up to $2,000,000, $675; and 
  6.22     (7) gross sales over $2,000,000, $800. 
  6.23     (b) In addition to the fees in paragraph (a), a penalty of 
  6.24  ten percent of the fee due must be charged for each month that 
  6.25  the fee is delinquent for any application for renewal not 
  6.26  received by January 1 of the year following expiration of a 
  6.27  certificate. 
  6.28     Subd. 4.  [REINSPECTION; ADDITIONAL OR OPTIONAL INSPECTION 
  6.29  FEES.] If a reinspection is required or an additional inspection 
  6.30  is needed or requested, a fee shall be assessed based on mileage 
  6.31  and inspection time as follows: 
  6.32     (1) mileage charge:  current Internal Revenue Service 
  6.33  reimbursement rate; and 
  6.34     (2) inspection time:  $50 per hour. 
  6.35     Inspection time includes the driving time to and from the 
  6.36  location in addition to the time spent conducting the inspection.
  7.1      Sec. 7.  Minnesota Statutes 2002, section 18.525, is 
  7.2   amended to read: 
  7.3      18.525 [EXEMPT SALES.] 
  7.4      Subdivision 1.  An organization does not need to obtain a 
  7.5   nursery stock dealer certificate before offering certified 
  7.6   nursery stock for sale or distribution if the organization: 
  7.7      (1) is a nonprofit charitable, educational, or religious 
  7.8   organization; 
  7.9      (2) conducts sales or distributions of certified nursery 
  7.10  stock on 14 or fewer days in a calendar year; and 
  7.11     (3) uses the proceeds from its certified nursery stock 
  7.12  sales or distributions for charitable, educational, or religious 
  7.13  purposes. 
  7.14     The organization must notify the commissioner, prior to any 
  7.15  sales or distributions of certified nursery stock and must 
  7.16  demonstrate to the commissioner, if requested, that such sales 
  7.17  or distributions will be conducted on 14 or fewer days in the 
  7.18  calendar year, as provided in clause (2). 
  7.19     Subd. 2.  [HOBBYIST SALES.] (a) An organization or 
  7.20  individual may offer for sale certified nursery stock and is 
  7.21  exempt from the requirement to obtain a nursery stock dealer 
  7.22  certificate when all the following conditions apply: 
  7.23     (1) the gross sales of all nursery stock sold in a calendar 
  7.24  year do not exceed $1,000; 
  7.25     (2) all nursery stock sold or distributed by the hobbyist 
  7.26  is intended for planting in Minnesota; and 
  7.27     (3) all nursery stock purchased or procured for resale or 
  7.28  distribution was grown in Minnesota and has been certified by 
  7.29  the commissioner of agriculture. 
  7.30     (b) The commissioner may prescribe the conditions of the 
  7.31  certificate-exempt nursery sales and may conduct routine 
  7.32  inspections of nursery stock offered for sale in these 
  7.33  circumstances. 
  7.34     Sec. 8.  [18.541] [DISPOSITION AND USE OF MONEY RECEIVED.] 
  7.35     A nursery program account is established in the 
  7.36  agricultural fund in the state treasury.  All fees collected 
  8.1   under this chapter and interest attributable to money in the 
  8.2   account must be deposited in the nursery program account.  Money 
  8.3   in the account, including interest earned, is annually 
  8.4   appropriated to the commissioner to administer and enforce this 
  8.5   chapter. 
  8.6      Sec. 9.  [18.611] [EXPORT CERTIFICATION, INSPECTIONS, 
  8.7   CERTIFICATES, PERMITS, AND FEES.] 
  8.8      Subdivision 1.  [FINDINGS; PURPOSE.] Most foreign countries 
  8.9   and several states have quarantines, restrictions, or 
  8.10  phytosanitary requirements, and regulations that must be met 
  8.11  before a plant or plant product may be imported into their 
  8.12  country or state.  To ensure continued access to foreign and 
  8.13  domestic markets, the commissioner shall provide inspection and 
  8.14  certification services to ensure that appropriate phytosanitary 
  8.15  restrictions or requirements are fully met. 
  8.16     Subd. 2.  [PLANT PROTECTION ACCOUNT.] A plant protection 
  8.17  account is established in the agricultural fund in the state 
  8.18  treasury.  All fees collected under this section must be 
  8.19  deposited in the plant protection account.  Money in this 
  8.20  account is appropriated to the commissioner to pay costs 
  8.21  associated with providing export certification and plant 
  8.22  protection permits and certificates for Minnesota agricultural 
  8.23  and plant products.  Penalties collected under this section in 
  8.24  the enforcement of this chapter must be deposited in the plant 
  8.25  protection account. 
  8.26     Subd. 3.  [COOPERATIVE AGREEMENTS.] The commissioner may 
  8.27  enter into cooperative agreements with federal and state 
  8.28  agencies for administration of the export certification 
  8.29  program.  An exporter of plants or plant products desiring to 
  8.30  originate shipments from Minnesota to a foreign country 
  8.31  requiring a phytosanitary or export certificate must submit an 
  8.32  application to the commissioner. 
  8.33     Subd. 4.  [PHYTOSANITARY AND EXPORT 
  8.34  CERTIFICATES.] Application for phytosanitary or export 
  8.35  certificates must be made on forms provided or approved by the 
  8.36  commissioner.  The commissioner shall conduct inspections of 
  9.1   plants, plant products, or facilities for persons that have 
  9.2   applied for or intend to apply for a phytosanitary or export 
  9.3   certificate from the commissioner.  Inspections must include one 
  9.4   or more of the following as requested or required: 
  9.5      (1) an inspection of the plants or plant products intended 
  9.6   for export under a phytosanitary or export certificate; 
  9.7      (2) field inspections of growing plants to determine 
  9.8   presence or absence of plant diseases, if necessary; 
  9.9      (3) laboratory diagnosis for presence or absence of plant 
  9.10  diseases, if necessary; 
  9.11     (4) observation and evaluation of procedures and facilities 
  9.12  utilized in handling plants and plant products, if necessary; 
  9.13  and 
  9.14     (5) review of United States Department of Agriculture, 
  9.15  Federal Grain Inspection Service Official Export Grain 
  9.16  Inspection Certificate logs. 
  9.17     The commissioner may issue a phytosanitary or export 
  9.18  certificate if the plants or plant products satisfactorily meet 
  9.19  the requirements of the importing foreign country and the United 
  9.20  States Department of Agriculture requirements.  The requirements 
  9.21  of the destination countries must be met by the applicant. 
  9.22     Subd. 5.  [CERTIFICATE FEES.] The commissioner shall assess 
  9.23  the following fees for the inspection, service, and work 
  9.24  performed in carrying out the issuance of a phytosanitary or 
  9.25  export certificate:  
  9.26     (1) mileage charge for inspection:  36.5 cents per mile or 
  9.27  current United States Internal Revenue Service mileage rate; 
  9.28     (2) inspection time, including the driving time to and from 
  9.29  the location in addition to the time spent conducting the 
  9.30  inspection:  $50 per hour minimum or a fee necessary to cover 
  9.31  department costs; 
  9.32     (3) certificate fee for product value greater than $250:  
  9.33  $75 for each phytosanitary or export certificate issued for any 
  9.34  single shipment valued at more than $250 in addition to any 
  9.35  mileage or inspection time charges that are assessed; and 
  9.36     (4) certificate fee for product value less than $250:  $25 
 10.1   for each phytosanitary or export certificate issued for any 
 10.2   single shipment valued at less than $250 in addition to any 
 10.3   mileage or inspection time charges that are assessed. 
 10.4      Subd. 6.  [CERTIFICATE DENIAL OR CANCELLATION.] The 
 10.5   commissioner may deny or cancel the issuance of a phytosanitary 
 10.6   or export certificate for any of the following reasons: 
 10.7      (1) failure of the plants or plant products to meet 
 10.8   quarantine, regulations, and requirements imposed by the country 
 10.9   for which the phytosanitary or export certificate is being 
 10.10  requested; 
 10.11     (2) failure to completely or accurately provide the 
 10.12  information requested on the application form; 
 10.13     (3) failure to ship the exact plants or plant products 
 10.14  which were inspected and approved; or 
 10.15     (4) failure to pay any fees or costs due the commissioner. 
 10.16     Subd. 7.  [PLANT PROTECTION INSPECTIONS, CERTIFICATES, 
 10.17  PERMITS, AND FEES.] (a) The commissioner may provide inspection, 
 10.18  sampling, or certification services to ensure that Minnesota 
 10.19  plant products or commodities meet import requirements of other 
 10.20  states or countries. 
 10.21     (b) The state plant regulatory official may issue permits 
 10.22  and certificates verifying that various Minnesota agricultural 
 10.23  products or commodities meet specified phytosanitary 
 10.24  requirements, treatment requirements, or pest absence assurances 
 10.25  based on determinations by the commissioner.  The commissioner 
 10.26  may collect fees sufficient to recover costs for these permits 
 10.27  or certificates.  The fees must be deposited in the plant 
 10.28  protection account. 
 10.29     Sec. 10.  [18.612] [CREDITING OF PENALTIES, FEES, AND 
 10.30  COSTS.] 
 10.31     Penalties, cost reimbursements, fees, and other money 
 10.32  collected under this chapter must be deposited into the state 
 10.33  treasury and credited to the appropriate plant protection, 
 10.34  nursery, or seed account. 
 10.35     Sec. 11.  Minnesota Statutes 2002, section 18.78, is 
 10.36  amended to read: 
 11.1      18.78 [CONTROL OR ERADICATION OF NOXIOUS WEEDS.] 
 11.2      Subdivision 1.  [GENERALLY.] Except as provided in section 
 11.3   18.85, a person owning land, a person occupying land, or a 
 11.4   person responsible for the maintenance of public land shall 
 11.5   control or eradicate all noxious weeds on the land at a time and 
 11.6   in a manner ordered by the commissioner, the county agricultural 
 11.7   inspector, or a local weed inspector. 
 11.8      Subd. 2.  [CONTROL OF PURPLE LOOSESTRIFE.] An owner of 
 11.9   nonfederal lands underlying public waters or wetlands designated 
 11.10  under section 103G.201 is not required to control or eradicate 
 11.11  purple loosestrife below the ordinary high water level of the 
 11.12  public water or wetland.  The commissioner of natural resources 
 11.13  is responsible for control and eradication of purple loosestrife 
 11.14  on public waters and wetlands designated under section 103G.201, 
 11.15  except those located upon lands owned in fee title or managed by 
 11.16  the United States.  The officers, employees, agents, and 
 11.17  contractors of the commissioner of natural resources may enter 
 11.18  upon public waters and wetlands designated under section 
 11.19  103G.201 and, after providing notification to the occupant or 
 11.20  owner of the land, may cross adjacent lands as necessary for the 
 11.21  purpose of investigating purple loosestrife infestations, 
 11.22  formulating methods of eradication, and implementing control and 
 11.23  eradication of purple loosestrife.  The commissioner, after 
 11.24  consultation with the commissioner of agriculture, of natural 
 11.25  resources shall, by June 1 of each year, compile a priority list 
 11.26  of purple loosestrife infestations to be controlled in 
 11.27  designated public waters.  The commissioner of agriculture 
 11.28  natural resources must distribute the list to county 
 11.29  agricultural inspectors, local weed inspectors, and their 
 11.30  appointed agents.  The commissioner of natural resources shall 
 11.31  control listed purple loosestrife infestations in priority order 
 11.32  within the limits of appropriations provided for that purpose.  
 11.33  This procedure shall be the exclusive means for control of 
 11.34  purple loosestrife on designated public waters by the 
 11.35  commissioner of natural resources and shall supersede the other 
 11.36  provisions for control of noxious weeds set forth elsewhere in 
 12.1   this chapter.  The responsibility of the commissioner of natural 
 12.2   resources to control and eradicate purple loosestrife on public 
 12.3   waters and wetlands located on private lands and the authority 
 12.4   to enter upon private lands ends ten days after receipt by the 
 12.5   commissioner of a written statement from the landowner that the 
 12.6   landowner assumes all responsibility for control and eradication 
 12.7   of purple loosestrife under sections 18.78 to 18.88.  State 
 12.8   officers, employees, agents, and contractors of the commissioner 
 12.9   of natural resources are not liable in a civil action for 
 12.10  trespass committed in the discharge of their duties under this 
 12.11  section and are not liable to anyone for damages, except for 
 12.12  damages arising from gross negligence. 
 12.13     Sec. 12.  Minnesota Statutes 2002, section 18.79, 
 12.14  subdivision 2, is amended to read: 
 12.15     Subd. 2.  [AUTHORIZED AGENTS.] The commissioner shall 
 12.16  authorize department of agriculture personnel and may authorize, 
 12.17  in writing, County agricultural inspectors to act as agents in 
 12.18  the administration and enforcement of shall administer and 
 12.19  enforce sections 18.76 to 18.88.  
 12.20     Sec. 13.  Minnesota Statutes 2002, section 18.79, 
 12.21  subdivision 3, is amended to read: 
 12.22     Subd. 3.  [ENTRY UPON LAND.] To administer and enforce 
 12.23  sections 18.76 to 18.88, the commissioner, authorized agents of 
 12.24  the commissioner, county agricultural inspectors, and local weed 
 12.25  inspectors may enter upon land without consent of the owner and 
 12.26  without being subject to an action for trespass or any damages.  
 12.27     Sec. 14.  Minnesota Statutes 2002, section 18.79, 
 12.28  subdivision 5, is amended to read: 
 12.29     Subd. 5.  [ORDER FOR CONTROL OR ERADICATION OF NOXIOUS 
 12.30  WEEDS.] The commissioner, A county agricultural inspector, or a 
 12.31  local weed inspector may order the control or eradication of 
 12.32  noxious weeds on any land within the state.  
 12.33     Sec. 15.  Minnesota Statutes 2002, section 18.79, 
 12.34  subdivision 6, is amended to read: 
 12.35     Subd. 6.  [EDUCATIONAL PROGRAMS FOR CONTROL OR ERADICATION 
 12.36  OF NOXIOUS WEEDS.] The commissioner shall conduct education 
 13.1   programs considered necessary for weed inspectors in the 
 13.2   enforcement of the Noxious Weed Law.  The director of the 
 13.3   Minnesota extension service may conduct educational programs for 
 13.4   the general public that will aid compliance with the noxious 
 13.5   weed law. 
 13.6      Sec. 16.  Minnesota Statutes 2002, section 18.79, 
 13.7   subdivision 9, is amended to read: 
 13.8      Subd. 9.  [INJUNCTION.] If the commissioner county 
 13.9   agricultural inspector applies to a court for a temporary or 
 13.10  permanent injunction restraining a person from violating or 
 13.11  continuing to violate sections 18.76 to 18.88, the injunction 
 13.12  may be issued without requiring a bond.  
 13.13     Sec. 17.  Minnesota Statutes 2002, section 18.79, 
 13.14  subdivision 10, is amended to read: 
 13.15     Subd. 10.  [PROSECUTION.] On finding that a person has 
 13.16  violated sections 18.76 to 18.88, the commissioner county 
 13.17  agricultural inspector may start court proceedings in the 
 13.18  locality in which the violation occurred.  The county attorney 
 13.19  may prosecute actions under sections 18.76 to 18.88 within the 
 13.20  county attorney's jurisdiction.  
 13.21     Sec. 18.  Minnesota Statutes 2002, section 18.79, 
 13.22  subdivision 11, is amended to read: 
 13.23     Subd. 11.  [QUARANTINE.] The commissioner county 
 13.24  agricultural inspector may establish a noxious weed quarantine 
 13.25  according to section 18.85 and may hire additional employees and 
 13.26  purchase the necessary equipment, supplies, or services to 
 13.27  properly carry out the eradication of noxious weeds on 
 13.28  quarantined land.  
 13.29     Sec. 19.  Minnesota Statutes 2002, section 18.81, 
 13.30  subdivision 2, is amended to read: 
 13.31     Subd. 2.  [LOCAL WEED INSPECTORS.] Local weed inspectors 
 13.32  shall:  
 13.33     (1) examine all lands, including highways, roads, alleys, 
 13.34  and public ground in the territory over which their jurisdiction 
 13.35  extends to ascertain if section 18.78 and related rules have 
 13.36  been complied with; 
 14.1      (2) see that the control or eradication of noxious weeds is 
 14.2   carried out in accordance with section 18.83 and related 
 14.3   rules; and 
 14.4      (3) issue permits in accordance with section 18.82 and 
 14.5   related rules for the transportation of materials or equipment 
 14.6   infested with noxious weed propagating parts; and 
 14.7      (4) submit reports and attend meetings that the 
 14.8   commissioner requires. 
 14.9      Sec. 20.  Minnesota Statutes 2002, section 18.81, 
 14.10  subdivision 3, is amended to read: 
 14.11     Subd. 3.  [NONPERFORMANCE BY INSPECTORS; REIMBURSEMENT FOR 
 14.12  EXPENSES.] (a) If local weed inspectors neglect or fail to do 
 14.13  their duty as prescribed in this section, the commissioner 
 14.14  county agricultural inspector shall issue a notice to the 
 14.15  inspector providing instructions on how and when to do their 
 14.16  duty.  If, after the time allowed in the notice, the local weed 
 14.17  inspector has not complied as directed, the county agricultural 
 14.18  inspector may perform the duty for the local weed inspector.  A 
 14.19  claim for the expense of doing the local weed inspector's duty 
 14.20  is a legal charge against the municipality in which the 
 14.21  inspector has jurisdiction.  The county agricultural inspector 
 14.22  doing the work may file an itemized statement of costs with the 
 14.23  clerk of the municipality in which the work was performed.  The 
 14.24  municipality shall immediately issue proper warrants to the 
 14.25  county for the work performed.  If the municipality fails to 
 14.26  issue the warrants, the county auditor may include the amount 
 14.27  contained in the itemized statement of costs as part of the next 
 14.28  annual tax levy in the municipality and withhold that amount 
 14.29  from the municipality in making its next apportionment. 
 14.30     (b) If a county agricultural inspector fails to perform the 
 14.31  duties as prescribed in this section, the commissioner shall 
 14.32  issue a notice to the inspector providing instructions on how 
 14.33  and when to do that duty.  
 14.34     (c) The commissioner shall by rule establish procedures to 
 14.35  carry out the enforcement actions for nonperformance required by 
 14.36  this subdivision. 
 15.1      Sec. 21.  Minnesota Statutes 2002, section 18.84, 
 15.2   subdivision 3, is amended to read: 
 15.3      Subd. 3.  [COURT APPEAL OF COSTS; PETITION.] (a) A 
 15.4   landowner who has appealed the cost of noxious weed control 
 15.5   measures under subdivision 2 may petition for judicial review.  
 15.6   The petition must be filed within 30 days after the conclusion 
 15.7   of the hearing before the county board.  The petition must be 
 15.8   filed with the court administrator in the county in which the 
 15.9   land where the noxious weed control measures were undertaken is 
 15.10  located, together with proof of service of a copy of the 
 15.11  petition on the commissioner and the county auditor.  No 
 15.12  responsive pleadings may be required of the commissioner or the 
 15.13  county, and no court fees may be charged for the appearance of 
 15.14  the commissioner or the county in this matter. 
 15.15     (b) The petition must be captioned in the name of the 
 15.16  person making the petition as petitioner and the commissioner of 
 15.17  agriculture and respective county as respondents.  The petition 
 15.18  must include the petitioner's name, the legal description of the 
 15.19  land involved, a copy of the notice to control noxious weeds, 
 15.20  and the date or dates on which appealed control measures were 
 15.21  undertaken. 
 15.22     (c) The petition must state with specificity the grounds 
 15.23  upon which the petitioner seeks to avoid the imposition of a 
 15.24  lien for the cost of noxious weed control measures. 
 15.25     Sec. 22.  Minnesota Statutes 2002, section 18.85, is 
 15.26  amended to read: 
 15.27     18.85 [NOXIOUS WEED QUARANTINE.] 
 15.28     Subdivision 1.  [NEED FOR QUARANTINE.] If there is an 
 15.29  infestation of noxious weeds beyond the ability of the person 
 15.30  who owns or occupies the land to eradicate it, the commissioner 
 15.31  county agricultural inspector may, upon request of the person 
 15.32  who owns the land or on the commissioner's county agricultural 
 15.33  inspector's own initiative, take necessary steps to prevent the 
 15.34  further spread of the weed.  To this end, the commissioner 
 15.35  county agricultural inspector may quarantine a tract of land 
 15.36  that is infested and put into operation the necessary means for 
 16.1   the eradication of the weed; provided that the county board and 
 16.2   municipality in which the land is located must approve of the 
 16.3   quarantine before it can be initiated. 
 16.4      Subd. 2.  [NOTICE OF QUARANTINE.] The commissioner county 
 16.5   agricultural inspector, upon entering a tract of land for the 
 16.6   purpose of this section, shall notify in writing the persons who 
 16.7   own or occupy the land of the entry and quarantine.  If the 
 16.8   necessary means of eradication have been completed, 
 16.9   the commissioner county agricultural inspector shall notify, in 
 16.10  writing, the persons who own or occupy the land that the 
 16.11  quarantine effort is complete.  
 16.12     Subd. 3.  [EXPENSES.] The expenses for eradication of 
 16.13  noxious weeds on quarantined land must be paid by the 
 16.14  commissioner county from the funds provided for this purpose.  
 16.15     Counties, municipalities, and owners or occupants must 
 16.16  reimburse the commissioner county before January 1 of each year. 
 16.17  The county shall pay 20 percent of the expenses, the 
 16.18  municipality shall pay ten percent, and the owner or occupant 
 16.19  shall pay ten percent. 
 16.20     Sec. 23.  Minnesota Statutes 2002, section 18.86, is 
 16.21  amended to read: 
 16.22     18.86 [UNLAWFUL ACTS.] 
 16.23     No person may:  
 16.24     (1) hinder or obstruct in any way the commissioner, the 
 16.25  commissioner's authorized agents, county agricultural 
 16.26  inspectors, or local weed inspectors in the performance of their 
 16.27  duties as provided in sections 18.76 to 18.88 or related rules; 
 16.28     (2) neglect, fail, or refuse to comply with section 18.82 
 16.29  or related rules in the transportation and use of material or 
 16.30  equipment infested with noxious weed propagating parts; 
 16.31     (3) sell material containing noxious weed propagating parts 
 16.32  to a person who does not have a permit to transport that 
 16.33  material or to a person who does not have a screenings permit 
 16.34  issued in accordance with section 21.74; or 
 16.35     (4) neglect, fail, or refuse to comply with a general 
 16.36  notice or an individual notice to control or eradicate noxious 
 17.1   weeds.  
 17.2      Sec. 24.  Minnesota Statutes 2002, section 18B.26, 
 17.3   subdivision 3, is amended to read: 
 17.4      Subd. 3.  [APPLICATION FEE.] (a) A registrant shall pay an 
 17.5   annual application fee for each pesticide to be registered, and 
 17.6   this fee is set at one-tenth of one percent for calendar year 
 17.7   1990, at one-fifth of one percent for calendar year 1991, and at 
 17.8   two-fifths of one percent for calendar year 1992 and thereafter 
 17.9   of annual gross sales within the state and annual gross sales of 
 17.10  pesticides used in the state, with a minimum nonrefundable fee 
 17.11  of $250.  The registrant shall determine when and which 
 17.12  pesticides are sold or used in this state.  The registrant shall 
 17.13  secure sufficient sales information of pesticides distributed 
 17.14  into this state from distributors and dealers, regardless of 
 17.15  distributor location, to make a determination.  Sales of 
 17.16  pesticides in this state and sales of pesticides for use in this 
 17.17  state by out-of-state distributors are not exempt and must be 
 17.18  included in the registrant's annual report, as required under 
 17.19  paragraph (c), and fees shall be paid by the registrant based 
 17.20  upon those reported sales.  Sales of pesticides in the state for 
 17.21  use outside of the state are exempt from the application fee in 
 17.22  this paragraph if the registrant properly documents the sale 
 17.23  location and distributors.  A registrant paying more than the 
 17.24  minimum fee shall pay the balance due by March 1 based on the 
 17.25  gross sales of the pesticide by the registrant for the preceding 
 17.26  calendar year.  The fee for disinfectants and sanitizers shall 
 17.27  be the minimum.  The minimum fee is due by December 31 preceding 
 17.28  the year for which the application for registration is made.  Of 
 17.29  the amount collected after calendar year 1990, at least $600,000 
 17.30  per fiscal year must be credited to the waste pesticide account 
 17.31  under section 18B.065, subdivision 5. 
 17.32     (b) An additional fee of $100 must be paid by the applicant 
 17.33  for each pesticide to be registered if the application is a 
 17.34  renewal application that is submitted after December 31. 
 17.35     (c) A registrant must annually report to the commissioner 
 17.36  the amount and type of each registered pesticide sold, offered 
 18.1   for sale, or otherwise distributed in the state.  The report 
 18.2   shall be filed by March 1 for the previous year's registration.  
 18.3   The commissioner shall specify the form of the report and 
 18.4   require additional information deemed necessary to determine the 
 18.5   amount and type of pesticides annually distributed in the 
 18.6   state.  The information required shall include the brand name, 
 18.7   amount, and formulation of each pesticide sold, offered for 
 18.8   sale, or otherwise distributed in the state, but the information 
 18.9   collected, if made public, shall be reported in a manner which 
 18.10  does not identify a specific brand name in the report. 
 18.11     Sec. 25.  Minnesota Statutes 2002, section 21.89, 
 18.12  subdivision 2, is amended to read: 
 18.13     Subd. 2.  [PERMITS; ISSUANCE AND REVOCATION.] (a) The 
 18.14  commissioner shall issue a permit to the initial labeler of 
 18.15  agricultural, vegetable, or flower, and wildflower seeds which 
 18.16  are sold for use in Minnesota and which conform to and are 
 18.17  labeled under sections 21.80 to 21.92.  The commissioner shall 
 18.18  issue three categories of permits according to the conditions in 
 18.19  paragraphs (b) to (d). 
 18.20     (b) For initial labelers who sell 50,000 pounds or less of 
 18.21  agricultural seed each calendar year, the commissioner shall 
 18.22  issue an annual permit for a fee established in section 21.891, 
 18.23  subdivision 2, paragraph (b). 
 18.24     (c) For initial labelers who sell vegetable, flower, and 
 18.25  wildflower seed packed for use in home gardens or household 
 18.26  plantings, the commissioner shall issue an annual permit for a 
 18.27  fee established in section 21.891, subdivision 2, paragraph 
 18.28  (c).  The fee amount shall be based upon the gross sales from 
 18.29  the previous year. 
 18.30     (d) For initial labelers who sell more than 50,000 pounds 
 18.31  of agricultural seed each calendar year, the commissioner shall 
 18.32  issue a permanent permit for an issuance fee established in 
 18.33  section 21.891, subdivision 2, paragraph (d).  In addition, the 
 18.34  person shall furnish to the commissioner an itemized statement 
 18.35  of all seeds sold in Minnesota for the periods established by 
 18.36  the commissioner.  This statement shall be delivered, along with 
 19.1   the payment of the fee, based upon the amount and type of seed 
 19.2   sold, to the commissioner no later than 30 days after the end of 
 19.3   each reporting period.  Any person holding a permit shall show 
 19.4   as part of the analysis labels or invoices on all agricultural, 
 19.5   vegetable, flower, wildflower, tree or shrub seeds all 
 19.6   information the commissioner requires.  The commissioner may 
 19.7   revoke any permit in the event of failure to comply with 
 19.8   applicable laws and rules. 
 19.9      Sec. 26.  [21.891] [CHARGES UNDER MINNESOTA SEED LAW.] 
 19.10     Subdivision 1.  [SAMPLING EXPORT SEED.] In accordance with 
 19.11  section 21.85, subdivision 13, the commissioner shall, if 
 19.12  requested, sample seed destined for export to other countries.  
 19.13  The fee for sampling export seed is an hourly rate published 
 19.14  annually by the commissioner and it shall be an amount 
 19.15  sufficient to recover the actual costs for the service provided. 
 19.16     Subd. 2.  [SEED FEE PERMITS.] (a) An initial labeler who 
 19.17  wishes to sell seed in Minnesota must comply with section 21.89, 
 19.18  subdivisions 1 and 2, and the procedures in this subdivision.  
 19.19  Each initial labeler who wishes to sell seed in Minnesota must 
 19.20  apply to the commissioner to obtain a permit.  The application 
 19.21  must contain the name and address of the applicant, the 
 19.22  application date, and the name and title of the applicant's 
 19.23  contact person. 
 19.24     (b) The application for a seed permit covered by section 
 19.25  21.89, subdivision 2, paragraph (b), must be accompanied by an 
 19.26  application fee of $50. 
 19.27     (c) The application for a seed permit covered by section 
 19.28  21.89, subdivision 2, paragraph (c), must be accompanied by an 
 19.29  application fee based on the level of annual gross sales as 
 19.30  follows: 
 19.31     (1) for gross sales of zero to $25,000, the annual permit 
 19.32  fee is $50; 
 19.33     (2) for gross sales of $25,001 to $50,000, the annual 
 19.34  permit fee is $100; 
 19.35     (3) for gross sales of $50,001 to $100,000, the annual 
 19.36  permit fee is $200; 
 20.1      (4) for gross sales of $100,001 to $250,000, the annual 
 20.2   permit fee is $500; 
 20.3      (5) for gross sales of $250,001 to $500,000, the annual 
 20.4   permit fee is $1,000; and 
 20.5      (6) for gross sales of $500,001 and above, the annual 
 20.6   permit fee is $2,000. 
 20.7      (d) The application for a seed permit covered by section 
 20.8   21.89, subdivision 2, paragraph (d), must be accompanied by an 
 20.9   application fee of $50.  Initial labelers holding seed fee 
 20.10  permits covered under this subdivision need not apply for a new 
 20.11  permit or pay the application fee.  Under this permit category, 
 20.12  the fees for the following kinds of agricultural seed sold 
 20.13  either in bulk or containers are: 
 20.14     (1) oats, wheat, barley:  6.3 cents per hundredweight; 
 20.15     (2) rye, field beans, soybeans, buckwheat, flax:  8.4 cents 
 20.16  per hundredweight; 
 20.17     (3) field corn:  29.4 cents per hundredweight; 
 20.18     (4) forage, lawn and turf grasses, legumes:  49 cents per 
 20.19  hundredweight; 
 20.20     (5) sunflower:  $1.40 per hundredweight; 
 20.21     (6) sugar beet:  $3.29 per hundredweight; and 
 20.22     (7) for any agricultural seed not listed in clauses (1) to 
 20.23  (6), the fee for the crop most closely resembling it in normal 
 20.24  planting rate applies. 
 20.25     (e) If, for reasons beyond the control and knowledge of the 
 20.26  initial labeler, seed is shipped into Minnesota by a person 
 20.27  other than the initial labeler, the responsibility for the seed 
 20.28  fees are transferred to the shipper.  An application for a 
 20.29  transfer of this responsibility must be made to the 
 20.30  commissioner.  Upon approval by the commissioner of the 
 20.31  transfer, the shipper is responsible for payment of the seed 
 20.32  permit fees. 
 20.33     (f) Seed permit fees may be included in the cost of the 
 20.34  seed either as a hidden cost or as a line item cost on each 
 20.35  invoice for seed sold.  To identify the fee on an invoice, the 
 20.36  words, "Minnesota seed permit fees" must be used.  
 21.1      (g) All seed fee permit holders must file semiannual 
 21.2   reports with the commissioner, even if no seed was sold during 
 21.3   the reporting period.  Each semiannual report must be submitted 
 21.4   within 30 days of the end of each reporting period.  The 
 21.5   reporting periods are October 1 to March 31 and April 1 to 
 21.6   September 30 of each year or July 1 to December 31, and January 
 21.7   1 to June 30 of each year.  Permit holders may change their 
 21.8   reporting periods with the approval of the commissioner. 
 21.9      (h) The holder of a seed fee permit must pay fees on all 
 21.10  seed for which the permit holder is the initial labeler and 
 21.11  which are covered by sections 21.80 to 21.92 and sold during the 
 21.12  reporting period. 
 21.13     (i) If a seed fee permit holder fails to submit a 
 21.14  semiannual report and pay the seed fee within 30 days after the 
 21.15  end of each reporting period, the commissioner shall assess a 
 21.16  penalty of $100 or eight percent, calculated on an annual basis, 
 21.17  of the fee due, whichever is greater, but no more than $500 for 
 21.18  each late semiannual report.  A $15 penalty must be charged when 
 21.19  the semiannual report is late, even if no fee is due for the 
 21.20  reporting period.  Seed fee permits may be revoked for failure 
 21.21  to comply with this subdivision or the Minnesota seed law. 
 21.22     Subd. 3.  [HYBRID SEED CORN VARIETY REGISTRATION FEE.] In 
 21.23  accordance with section 21.90, subdivision 2, the fee for the 
 21.24  registration of each hybrid seed corn variety or blend is $50, 
 21.25  which must be paid at the time of registration.  New hybrid seed 
 21.26  corn variety registrations received after March 1 and renewed 
 21.27  registrations of older varieties received after August 1 of each 
 21.28  year will have an annual registration fee of $75 per variety. 
 21.29     Subd. 4.  [BRAND NAME REGISTRATION FEE.] The fee is $25 for 
 21.30  each variety registered for sale by brand name. 
 21.31     Sec. 27.  Minnesota Statutes 2002, section 21.90, 
 21.32  subdivision 2, is amended to read: 
 21.33     Subd. 2.  [FEES.] A record of each new hybrid seed field 
 21.34  corn variety to be sold in Minnesota shall be registered with 
 21.35  the commissioner by February March 1 of each year by the 
 21.36  originator or owner.  Records of all other hybrid seed field 
 22.1   corn varieties sold in Minnesota must be registered with the 
 22.2   commissioner by August 1 of each year by the originator or 
 22.3   owner.  The commissioner shall establish the annual fee for 
 22.4   registration for each variety.  The record shall include the 
 22.5   permanent designation of the hybrid as well as the day 
 22.6   classification and zone of adaptation, as determined under 
 22.7   subdivision 1, which the originator or owner declares to be the 
 22.8   zone in which the variety is adapted.  In addition, at the time 
 22.9   of the first registration of a hybrid seed field corn variety, 
 22.10  the originator or owner shall include a sworn statement that the 
 22.11  declaration of the zone of adaptation was based on actual field 
 22.12  trials in that zone and that the field trials substantiate the 
 22.13  declaration as to the day and zone classifications to which the 
 22.14  variety is adapted.  The name or number used to designate a 
 22.15  hybrid seed field corn variety in the registration is the only 
 22.16  name of all seed corn covered by or sold under that registration.
 22.17  To assist in defraying the expenses of the Minnesota 
 22.18  agricultural experiment station in carrying out the provisions 
 22.19  of this section, there is transferred annually from the seed 
 22.20  inspection fund to the agricultural experiment station a sum 
 22.21  which shall at least equal 60 percent of the total revenue from 
 22.22  all hybrid seed field corn variety registrations. 
 22.23     Sec. 28.  Minnesota Statutes 2002, section 21.901, is 
 22.24  amended to read: 
 22.25     21.901 [BRAND NAME REGISTRATION.] 
 22.26     The owner or originator of a variety of nonhybrid seed that 
 22.27  is to be sold in this state must annually register the variety 
 22.28  with the commissioner if the variety is to be sold only under a 
 22.29  brand name.  The registration must include the brand name and 
 22.30  the variety of seed.  The brand name for a blend or mixture need 
 22.31  not be registered. 
 22.32     The fee is $15 for each variety registered for sale by 
 22.33  brand name. 
 22.34     Sec. 29.  Minnesota Statutes 2002, section 28A.08, 
 22.35  subdivision 3, is amended to read: 
 22.36     Subd. 3.  [FEES EFFECTIVE JULY 1, 1999 2003.] 
 23.1                                                     Penalties 
 23.2   Type of food handler                    License    Late     No
 23.3                                           Fee      Renewal  License
 23.4                                           Effective 
 23.5                                           July 1,
 23.6                                           1999
 23.7                                           2003
 23.8   1.   Retail food handler
 23.9        (a) Having gross sales of only
 23.10       prepackaged nonperishable food
 23.11       of less than $15,000 for 
 23.12       the immediately previous 
 23.13       license or fiscal year and 
 23.14       filing a statement with the 
 23.15       commissioner                       $ 48     $ 16     $ 27
 23.16                                          $ 65     $ 21     $ 43
 23.17       (b) Having under $15,000 gross
 23.18       sales including food preparation 
 23.19       or having $15,000 to $50,000 
 23.20       gross sales for the immediately 
 23.21       previous license or fiscal year    $ 65     $ 16     $ 27
 23.22                                          $ 88     $ 29     $ 58
 23.23       (c) Having $50,000 to $250,000 
 23.24       gross sales for the immediately 
 23.25       previous license or fiscal year    $126     $ 37     $ 80 
 23.26                                          $170     $ 56     $112
 23.27       (d) Having $250,000 to 
 23.28       $1,000,000 gross sales for the 
 23.29       immediately previous license or 
 23.30       fiscal year                        $216     $ 54     $107
 23.31                                          $292     $ 96     $193
 23.32       (e) Having $1,000,000 to 
 23.33       $5,000,000 gross sales for the 
 23.34       immediately previous license or 
 23.35       fiscal year                        $601     $107     $187
 23.36                                          $812     $268     $536
 24.1        (f) Having $5,000,000 to
 24.2        $10,000,000 gross sales for the
 24.3        immediately previous license or
 24.4        fiscal year                        $842     $161     $321
 24.5                                         $1,137     $375     $750
 24.6        (g) Having over $10,000,000
 24.7        gross sales for the immediately
 24.8        previous license or fiscal year    $962     $214     $375
 24.9                                         $1,300     $429     $858
 24.10  2.   Wholesale food handler
 24.11       (a) Having gross sales or
 24.12       service of less than $25,000
 24.13       for the immediately previous 
 24.14       license or fiscal year             $ 54     $ 16     $ 16
 24.15                                          $ 73     $ 24     $ 48
 24.16       (b) Having $25,000 to
 24.17       $250,000 gross sales or
 24.18       service for the immediately 
 24.19       previous license or fiscal year    $241     $ 54     $107
 24.20                                          $326     $108     $215
 24.21       (c) Having $250,000 to 
 24.22       $1,000,000 gross sales or
 24.23       service from a mobile unit
 24.24       without a separate food facility
 24.25       for the immediately previous
 24.26       license or fiscal year             $361     $ 80     $161
 24.27                                          $488     $161     $322
 24.28       (d) Having $250,000 to 
 24.29       $1,000,000 gross sales or
 24.30       service not covered under 
 24.31       paragraph (c) for the immediately 
 24.32       previous license or fiscal year    $480     $107     $214
 24.33                                          $648     $214     $428
 24.34       (e) Having $1,000,000 to
 24.35       $5,000,000 gross sales or 
 24.36       service for the immediately 
 25.1        previous license or fiscal year    $601     $134     $268
 25.2                                           $812     $268     $536
 25.3        (f) Having over $5,000,000 gross
 25.4        sales for the immediately 
 25.5        previous license or fiscal year    $692     $161     $321
 25.6                                           $935     $309     $617
 25.7   3.   Food broker                        $120     $ 32     $ 54
 25.8                                           $150     $ 50     $ 99
 25.10  4.   Wholesale food processor
 25.11       or manufacturer 
 25.12       (a) Having gross sales of less 
 25.13       than $125,000 for the 
 25.14       immediately previous license 
 25.15       or fiscal year                     $161     $ 54     $107
 25.16                                          $217     $ 72     $143
 25.17       (b) Having $125,000 to $250,000
 25.18       gross sales for the immediately 
 25.19       previous license or fiscal year    $332     $ 80     $161
 25.20                                          $448     $148     $296
 25.22       (c) Having $250,001 to $1,000,000
 25.23       gross sales for the immediately 
 25.24       previous license or fiscal year    $480     $107     $214
 25.25                                          $648     $214     $428
 25.26       (d) Having $1,000,001 to
 25.27       5,000,000 gross sales for the
 25.28       immediately previous license or
 25.29       fiscal year                        $601     $134     $268
 25.30                                          $812     $268     $536
 25.31       (e) Having $5,000,001 to 
 25.32       $10,000,000 gross sales for 
 25.33       the immediately previous 
 25.34       license or fiscal year             $692     $161     $321 
 25.35                                          $935     $309     $617
 25.36       (f) Having over $10,000,000 
 26.1        gross sales for the immediately 
 26.2        previous license or fiscal year    $963     $214     $375
 26.3                                         $1,301     $429     $859
 26.4   5.   Wholesale food processor of
 26.5        meat or poultry products
 26.6        under supervision of the
 26.7        U. S. Department of Agriculture 
 26.8        (a) Having gross sales of less 
 26.9        than $125,000 for the 
 26.10       immediately previous license 
 26.11       or fiscal year                     $107     $ 27     $ 54
 26.12                                          $145     $ 48     $ 96
 26.13       (b) Having $125,000 to 
 26.14       $250,000 gross sales for the
 26.15       immediately previous license
 26.16       or fiscal year                     $181     $ 54     $ 80
 26.17                                          $245     $ 81     $162
 26.18       (c) Having $250,001 to
 26.19       $1,000,000 gross sales for the
 26.20       immediately previous license
 26.21       or fiscal year                     $271     $ 80     $134
 26.22                                          $366     $121     $242
 26.23       (d) Having $1,000,001 to
 26.24       $5,000,000 gross sales 
 26.25       for the immediately previous 
 26.26       license or fiscal year             $332     $ 80     $161
 26.27                                          $448     $148     $296
 26.28       (e) Having $5,000,001 to 
 26.29       $10,000,000 gross sales for 
 26.30       the immediately previous 
 26.31       license or fiscal year             $392     $107     $187 
 26.32                                          $530     $175     $350
 26.33       (f) Having over $10,000,000 
 26.34       gross sales for the immediately 
 26.35       previous license or fiscal year    $535     $161     $268 
 26.36                                          $723     $239     $477
 27.1   6.   Wholesale food processor or
 27.2        manufacturer operating only at
 27.3        the state fair                     $125     $ 40     $ 50 
 27.4   7.   Wholesale food manufacturer
 27.5        having the permission of the
 27.6        commissioner to use the name
 27.7        Minnesota Farmstead cheese         $ 30     $ 10     $ 15
 27.8    8.  Nonresident frozen dairy 
 27.9        manufacturer                       $200     $ 50     $ 75
 27.10   9.  Wholesale food manufacturer
 27.11       processing less than 700,000
 27.12       pounds per year of raw milk        $ 30     $ 10     $ 15
 27.13   10. A milk marketing organization
 27.14       without facilities for 
 27.15       processing or manufacturing 
 27.16       that purchases milk from milk
 27.17       producers for delivery to a
 27.18       licensed wholesale food 
 27.19       processor or manufacturer          $ 50     $ 15     $ 25
 27.20     Sec. 30.  Minnesota Statutes 2002, section 28A.085, 
 27.21  subdivision 1, is amended to read: 
 27.22     Subdivision 1.  [VIOLATIONS; PROHIBITED ACTS.] The 
 27.23  commissioner may charge a reinspection fee for each reinspection 
 27.24  of a food handler that: 
 27.25     (1) is found with a major violation of requirements in 
 27.26  chapter 28, 29, 30, 31, 31A, 32, 33, or 34, or rules adopted 
 27.27  under one of those chapters; 
 27.28     (2) is found with a violation of section 31.02, 31.161, or 
 27.29  31.165, and requires a follow-up inspection after an 
 27.30  administrative meeting held pursuant to section 31.14; or 
 27.31     (3) fails to correct equipment and facility deficiencies as 
 27.32  required in rules adopted under chapter 28, 29, 30, 31, 31A, 32, 
 27.33  or 34.  The first reinspection of a firm with gross food sales 
 27.34  under $1,000,000 must be assessed at $25 $75.  The fee for a 
 27.35  firm with gross food sales over $1,000,000 is $50 $100.  The fee 
 27.36  for a subsequent reinspection of a firm for the same violation 
 28.1   is 50 percent of their current license fee or $200, whichever is 
 28.2   greater.  The establishment must be issued written notice of 
 28.3   violations with a reasonable date for compliance listed on the 
 28.4   notice.  An initial inspection relating to a complaint is not a 
 28.5   reinspection. 
 28.6      Sec. 31.  Minnesota Statutes 2002, section 28A.09, 
 28.7   subdivision 1, is amended to read: 
 28.8      Subdivision 1.  [ANNUAL FEE; EXCEPTIONS.] Every 
 28.9   coin-operated food vending machine is subject to an annual state 
 28.10  inspection fee of $15 $25 for each nonexempt machine except nut 
 28.11  vending machines which are subject to an annual state inspection 
 28.12  fee of $5 $10 for each machine, provided that: 
 28.13     (a) Food vending machines may be inspected by either a home 
 28.14  rule charter or statutory city, or a county, but not both, and 
 28.15  if inspected by a home rule charter or statutory city, or a 
 28.16  county they shall not be subject to the state inspection fee, 
 28.17  but the home rule charter or statutory city, or the county may 
 28.18  impose an inspection or license fee of no more than the state 
 28.19  inspection fee.  A home rule charter or statutory city or county 
 28.20  that does not inspect food vending machines shall not impose a 
 28.21  food vending machine inspection or license fee. 
 28.22     (b) Vending machines dispensing only gum balls, hard candy, 
 28.23  unsorted candy, or ice manufactured and packaged by another 
 28.24  shall be exempt from the state inspection fee, but may be 
 28.25  inspected by the state.  A home rule charter or statutory city 
 28.26  may impose by ordinance an inspection or license fee of no more 
 28.27  than the state inspection fee for nonexempt machines on the 
 28.28  vending machines described in this paragraph.  A county may 
 28.29  impose by ordinance an inspection or license fee of no more than 
 28.30  the state inspection fee for nonexempt machines on the vending 
 28.31  machines described in this paragraph which are not located in a 
 28.32  home rule charter or statutory city.  
 28.33     (c) Vending machines dispensing only bottled or canned soft 
 28.34  drinks are exempt from the state, home rule charter or statutory 
 28.35  city, and county inspection fees, but may be inspected by the 
 28.36  commissioner or the commissioner's designee. 
 29.1      Sec. 32.  Minnesota Statutes 2002, section 32.394, 
 29.2   subdivision 8, is amended to read: 
 29.3      Subd. 8.  [GRADE A INSPECTION FEES.] A processor or 
 29.4   marketing organization of milk, milk products, sheep milk, or 
 29.5   goat milk who wishes to market Grade A milk or use the Grade A 
 29.6   label must apply for Grade A inspection service from the 
 29.7   commissioner.  A pasteurization plant requesting Grade A 
 29.8   inspection service must hold a Grade A permit and pay an annual 
 29.9   inspection fee of no more than $500.  For Grade A farm 
 29.10  inspection service, the fee must be no more than $50 per farm, 
 29.11  paid annually by the processor or by the marketing organization 
 29.12  on behalf of its patrons.  For a farm requiring a reinspection 
 29.13  in addition to the required biannual inspections, an additional 
 29.14  fee of no more than $25 $45 per reinspection must be paid by the 
 29.15  processor or by the marketing organization on behalf of its 
 29.16  patrons.  The Grade A farm inspection fee must not exceed the 
 29.17  lesser of (1) 40 percent of the department's actual average cost 
 29.18  per farm inspection or reinspection; or (2) the dollar limits 
 29.19  set in this subdivision.  No fee increase may be implemented 
 29.20  until after the commissioner has held three or more public 
 29.21  hearings.  
 29.22     Sec. 33.  Minnesota Statutes 2002, section 32.394, 
 29.23  subdivision 8b, is amended to read: 
 29.24     Subd. 8b.  [MANUFACTURING GRADE FARM CERTIFICATION.] A 
 29.25  processor or marketing organization of milk, milk products, 
 29.26  sheep milk, or goat milk who wishes to market other than Grade A 
 29.27  milk must apply for a manufacturing grade farm certification 
 29.28  inspection from the commissioner.  A manufacturing plant that 
 29.29  pasteurizes milk or milk by-products must pay an annual fee 
 29.30  based on the number of pasteurization units.  This fee must not 
 29.31  exceed $140 per unit.  The fee for farm certification inspection 
 29.32  must not be more than $25 per farm to be paid annually by the 
 29.33  processor or by the marketing organization on behalf of its 
 29.34  patrons.  For a farm requiring more than the one inspection for 
 29.35  certification, a reinspection fee of no more than $25 $45 must 
 29.36  be paid by the processor or by the marketing organization on 
 30.1   behalf of its patrons.  The fee must be set by the commissioner 
 30.2   in an amount necessary to cover 40 percent of the department's 
 30.3   actual cost of providing the annual inspection but must not 
 30.4   exceed the limits in this subdivision.  No fee increase may be 
 30.5   implemented until after the commissioner has held three or more 
 30.6   public hearings.  
 30.7      Sec. 34.  Minnesota Statutes 2002, section 32.394, 
 30.8   subdivision 8d, is amended to read: 
 30.9      Subd. 8d.  [PROCESSOR ASSESSMENT.] (a) A manufacturer shall 
 30.10  pay to the commissioner a fee for fluid milk processed and milk 
 30.11  used in the manufacture of fluid milk products sold for retail 
 30.12  sale in Minnesota.  Beginning May 1, 1993, the fee is six cents 
 30.13  per hundredweight.  If the commissioner determines that a 
 30.14  different fee, in an amount not less than five cents and not 
 30.15  more than nine cents per hundredweight, when combined with 
 30.16  general fund appropriations and fees charged under sections 
 30.17  31.39 and 32.394, subdivision 8, is needed to provide adequate 
 30.18  funding for the Grades A and B inspection programs and the 
 30.19  administration and enforcement of Laws 1993, chapter 65, the 
 30.20  commissioner may, by rule, change the fee on processors within 
 30.21  the range provided within this subdivision as set by the 
 30.22  commissioner's order. 
 30.23     (b) Processors must report quantities of milk processed 
 30.24  under paragraph (a) on forms provided by the commissioner.  
 30.25  Processor fees must be paid monthly.  The commissioner may 
 30.26  require the production of records as necessary to determine 
 30.27  compliance with this subdivision. 
 30.28     (c) The commissioner may create within the department a 
 30.29  dairy consulting program to provide assistance to dairy 
 30.30  producers who are experiencing problems meeting the sanitation 
 30.31  and quality requirements of the dairy laws and rules. 
 30.32     The commissioner may use money appropriated from the dairy 
 30.33  services account created in subdivision 9 to pay for the program 
 30.34  authorized in this paragraph. 
 30.35     Sec. 35.  Minnesota Statutes 2002, section 37.03, 
 30.36  subdivision 1, is amended to read: 
 31.1      Subdivision 1.  [MEMBERS.] Members of the state 
 31.2   agricultural society must be citizens of this state.  The 
 31.3   membership is as follows: 
 31.4      (a) Three delegates chosen annually by each agricultural 
 31.5   society or association in the state which maintains an active 
 31.6   existence, and holds annual fairs, and is entitled to share in 
 31.7   the state appropriation under the provisions of section 38.02.  
 31.8   If one of those societies or associations fails to choose 
 31.9   delegates, then its president, secretary, and treasurer, by 
 31.10  virtue of their offices, are its delegates.  If two fairs 
 31.11  receiving state aid are operating in one county, each delegate 
 31.12  from each society or association is entitled to one-half vote at 
 31.13  regular or special meetings of the state society.  
 31.14     (b) One delegate appointed by the county board of each 
 31.15  county in which no county or district agricultural society 
 31.16  exists.  
 31.17     (c) Individuals elected by the society as honorary members 
 31.18  for having performed eminent services in agriculture, 
 31.19  horticulture, or related arts and sciences or long and faithful 
 31.20  service in or benefits to the society.  Honorary members must be 
 31.21  elected by two-thirds vote at any annual meeting.  The number of 
 31.22  honorary members may not exceed the society's membership and 
 31.23  only one honorary member may be elected annually.  Each honorary 
 31.24  member is entitled to one vote. 
 31.25     (d) Two elected delegates and the president may represent 
 31.26  each of the following societies and associations:  Red River 
 31.27  Valley Winter Shows, the Minnesota State Horticultural Society, 
 31.28  the State Dairyman's Association, the Minnesota Dairy Goat 
 31.29  Association, the Minnesota Honey Producers Association, Inc., 
 31.30  the Minnesota Livestock Breeders' Association, the Minnesota 
 31.31  Crop Improvement Association, the Minnesota Pork Producers 
 31.32  Association, the Minnesota Lamb and Wool Producers Association, 
 31.33  the Minnesota Horse Breeders' Association, the Minnesota 
 31.34  Veterinary Medical Association, the Minnesota Cattle Breeders' 
 31.35  Association, the Central Livestock Association, the Minnesota 
 31.36  State Poultry Association, the Farm Equipment Association, the 
 32.1   North Central Florist Association, the Minnesota Garden Flower 
 32.2   Society, the State Fair Exhibitors' Organization, the Minnesota 
 32.3   Federation of County Fairs, the State Forestry Association, the 
 32.4   Minnesota Horse Council, Minnesota Nurserymen's Association, 
 32.5   Minnesota Apple Growers' Association, State Grange of Minnesota, 
 32.6   Minnesota Farmers' Union, American Dairy Association of 
 32.7   Minnesota, and the Minnesota Farm Bureau Federation.  
 32.8      (e) The following societies and associations are entitled 
 32.9   to one delegate each:  Central Minnesota Vegetable Growers 
 32.10  Association, the Minnesota Fruit and Vegetable Growers' 
 32.11  Association, Minnesota Shorthorn Breeders' Association, the 
 32.12  Minnesota Milking Shorthorn Association, Minnesota Guernsey 
 32.13  Breeders' Association, Minnesota Jersey Cattle Club, Minnesota 
 32.14  Holstein Association, Minnesota Hereford Association, Minnesota 
 32.15  Aberdeen Angus Breeders', Minnesota Red Polled Breeders', 
 32.16  Minnesota Ayreshire Breeders' Association, Minnesota Brown Swiss 
 32.17  Association, Minnesota Poland China Breeders' Association, 
 32.18  Minnesota Duroc Breeders', Minnesota Chester White Association, 
 32.19  Minnesota Turkey Growers' Association, Minnesota Gladiolus 
 32.20  Society, Minnesota Hampshire Association, Minnesota Suffolk 
 32.21  Association, North American Dairy Sheep Association, and the 
 32.22  Minnesota Berkshire Association. 
 32.23     (f) The societies and associations listed in paragraphs (d) 
 32.24  and (e) must be active and statewide in their scope and 
 32.25  operation, hold annual meetings, and be incorporated under the 
 32.26  laws of the state before they are entitled to a delegate.  The 
 32.27  societies and associations must file with the secretary of 
 32.28  state, on or before December 20, a report showing that the 
 32.29  society or association has held a regular annual meeting for 
 32.30  that year, a summary of its financial transactions for the 
 32.31  current year, and an affidavit of the president and secretary 
 32.32  that it has a paid-up membership of at least 25.  On or before 
 32.33  December 31, the secretary of state shall certify to the 
 32.34  secretary of the state agricultural society the names of the 
 32.35  societies or associations that have complied with these 
 32.36  provisions.  
 33.1      (g) If a society or association ceases to exist or 
 33.2   otherwise fails to comply with the requirements of paragraph 
 33.3   (f), its membership in the state agricultural society and its 
 33.4   right to delegates is terminated and it may be replaced by 
 33.5   another society or association representing the same or similar 
 33.6   interests and chosen by a majority vote of the members of the 
 33.7   society at its next annual meeting. 
 33.8      (h) The members of the board of managers of the state 
 33.9   agricultural society are members of the society and entitled to 
 33.10  one vote each. 
 33.11     Sec. 36.  Minnesota Statutes 2002, section 41A.09, 
 33.12  subdivision 2a, is amended to read: 
 33.13     Subd. 2a.  [DEFINITIONS.] For the purposes of this section, 
 33.14  the terms defined in this subdivision have the meanings given 
 33.15  them. 
 33.16     (a) "Ethanol" means fermentation ethyl alcohol derived from 
 33.17  agricultural products, including potatoes, cereal, grains, 
 33.18  cheese whey, and sugar beets; forest products; or other 
 33.19  renewable resources, including residue and waste generated from 
 33.20  the production, processing, and marketing of agricultural 
 33.21  products, forest products, and other renewable resources, that: 
 33.22     (1) meets all of the specifications in ASTM specification D 
 33.23  4806-88; and 
 33.24     (2) is denatured as specified in Code of Federal 
 33.25  Regulations, title 27, parts 20 and 21. 
 33.26     (b) "Wet alcohol" means agriculturally derived fermentation 
 33.27  ethyl alcohol having a purity of at least 50 percent but less 
 33.28  than 99 percent. 
 33.29     (c) "Anhydrous alcohol" means fermentation ethyl alcohol 
 33.30  derived from agricultural products as described in paragraph 
 33.31  (a), but that does not meet ASTM specifications or is not 
 33.32  denatured and is shipped in bond for further processing. 
 33.33     (d) "Ethanol plant" means a plant at which ethanol, 
 33.34  anhydrous alcohol, or wet alcohol is produced. 
 33.35     Sec. 37.  Minnesota Statutes 2002, section 41A.09, 
 33.36  subdivision 3a, is amended to read: 
 34.1      Subd. 3a.  [PAYMENTS.] (a) The commissioner of agriculture 
 34.2   shall make cash payments to producers of ethanol, anhydrous 
 34.3   alcohol, and wet alcohol located in the state.  These payments 
 34.4   shall apply only to ethanol, anhydrous alcohol, and wet alcohol 
 34.5   fermented in the state and produced at plants that have begun 
 34.6   production by June 30, 2000.  For the purpose of this 
 34.7   subdivision, an entity that holds a controlling interest in more 
 34.8   than one ethanol plant is considered a single producer.  The 
 34.9   amount of the payment for each producer's annual production is: 
 34.10     (1) except as provided in paragraph (b), for each gallon of 
 34.11  ethanol or anhydrous alcohol produced on or before June 30, 
 34.12  2000, or ten years after the start of production, whichever is 
 34.13  later October 1, 2002, 19 20 cents per gallon; and for each 
 34.14  gallon produced after June 30, 2003, until ten years after the 
 34.15  start of production, ten cents per gallon.  Payments for the 
 34.16  period from October 1, 2002, through June 30, 2003, shall be in 
 34.17  an amount as determined by the governor under the governor's 
 34.18  budgetary powers. 
 34.19     (2) for each gallon produced of wet alcohol on or before 
 34.20  June 30, 2000, or ten years after the start of production, 
 34.21  whichever is later, a payment in cents per gallon calculated by 
 34.22  the formula "alcohol purity in percent divided by five," and 
 34.23  rounded to the nearest cent per gallon, but not less than 11 
 34.24  cents per gallon. 
 34.25     The producer payments for anhydrous alcohol and wet alcohol 
 34.26  under this section may be paid to either the original producer 
 34.27  of anhydrous alcohol or wet alcohol or the secondary processor, 
 34.28  at the option of the original producer, but not to both. 
 34.29     No payments shall be made for production that occurs after 
 34.30  June 30, 2010. 
 34.31     (b) If the level of production at an ethanol plant 
 34.32  increases due to an increase in the production capacity of the 
 34.33  plant, the payment under paragraph (a), clause (1), applies to 
 34.34  the additional increment of production until ten years after the 
 34.35  increased production began.  Once a plant's production capacity 
 34.36  reaches 15,000,000 gallons per year, no additional increment 
 35.1   will qualify for the payment. 
 35.2      (c) The commissioner shall make payments to producers of 
 35.3   ethanol or wet alcohol in the amount of 1.5 cents for each 
 35.4   kilowatt hour of electricity generated using closed-loop biomass 
 35.5   in a cogeneration facility at an ethanol plant located in the 
 35.6   state.  Payments under this paragraph shall be made only for 
 35.7   electricity generated at cogeneration facilities that begin 
 35.8   operation by June 30, 2000.  The payments apply to electricity 
 35.9   generated on or before the date ten years after the producer 
 35.10  first qualifies for payment under this paragraph.  Total 
 35.11  payments under this paragraph in any fiscal year may not exceed 
 35.12  $750,000.  For the purposes of this paragraph: 
 35.13     (1) "closed-loop biomass" means any organic material from a 
 35.14  plant that is planted for the purpose of being used to generate 
 35.15  electricity or for multiple purposes that include being used to 
 35.16  generate electricity; and 
 35.17     (2) "cogeneration" means the combined generation of: 
 35.18     (i) electrical or mechanical power; and 
 35.19     (ii) steam or forms of useful energy, such as heat, that 
 35.20  are used for industrial, commercial, heating, or cooling 
 35.21  purposes. 
 35.22     (d) Payments under paragraphs (a) and (b) to all producers 
 35.23  may not exceed $35,150,000 in a fiscal year.  Total payments 
 35.24  under paragraphs (a) and (b) this subdivision to a producer in a 
 35.25  fiscal year may not exceed $2,850,000 $1,500,000. 
 35.26     (e) (c) By the last day of October, January, April, and 
 35.27  July, each producer shall file a claim for payment for ethanol, 
 35.28  anhydrous alcohol, and wet alcohol production during the 
 35.29  preceding three calendar months.  A producer with more than one 
 35.30  plant shall file a separate claim for each plant.  A producer 
 35.31  that files a claim under this subdivision shall include a 
 35.32  statement of the producer's total ethanol, anhydrous alcohol, 
 35.33  and wet alcohol production in Minnesota during the quarter 
 35.34  covered by the claim, including anhydrous alcohol and wet 
 35.35  alcohol produced or received from an outside source.  A producer 
 35.36  shall file a separate claim for any amount claimed under 
 36.1   paragraph (c).  For each claim and statement of total ethanol, 
 36.2   anhydrous alcohol, and wet alcohol production filed under this 
 36.3   subdivision, the volume of ethanol, anhydrous alcohol, and wet 
 36.4   alcohol production or amounts of electricity generated using 
 36.5   closed-loop biomass must be examined by an independent certified 
 36.6   public accountant in accordance with standards established by 
 36.7   the American Institute of Certified Public Accountants. 
 36.8      (f) (d) Payments shall be made November 15, February 15, 
 36.9   May 15, and August 15.  A separate payment shall be made for 
 36.10  each claim filed.  Except as provided in paragraph (j), The 
 36.11  total quarterly payment to a producer under this paragraph, 
 36.12  excluding amounts paid under paragraph (c), may not exceed 
 36.13  $750,000 $375,000.  
 36.14     (g) If the total amount for which all producers are 
 36.15  eligible in a quarter under paragraph (c) exceeds the amount 
 36.16  available for payments, the commissioner shall make payments in 
 36.17  the order in which the plants covered by the claims began 
 36.18  generating electricity using closed-loop biomass. 
 36.19     (h) After July 1, 1997, new production capacity is only 
 36.20  eligible for payment under this subdivision if the commissioner 
 36.21  receives: 
 36.22     (1) an application for approval of the new production 
 36.23  capacity; 
 36.24     (2) an appropriate letter of long-term financial commitment 
 36.25  for construction of the new production capacity; and 
 36.26     (3) copies of all necessary permits for construction of the 
 36.27  new production capacity. 
 36.28     The commissioner may approve new production capacity based 
 36.29  on the order in which the applications are received.  
 36.30     (i) The commissioner may not approve any new production 
 36.31  capacity after July 1, 1998, except that a producer with an 
 36.32  approved production capacity of at least 12,000,000 gallons per 
 36.33  year but less than 15,000,000 gallons per year prior to July 1, 
 36.34  1998, is approved for 15,000,000 gallons of production capacity. 
 36.35     (j) Notwithstanding the quarterly payment limits of 
 36.36  paragraph (f), the commissioner shall make an additional payment 
 37.1   in the eighth quarter of each fiscal biennium to ethanol 
 37.2   producers for the lesser of:  (1) 19 cents per gallon of 
 37.3   production in the eighth quarter of the biennium that is greater 
 37.4   than 3,750,000 gallons; or (2) the total amount of payments lost 
 37.5   during the first seven quarters of the biennium due to plant 
 37.6   outages, repair, or major maintenance.  Total payments to an 
 37.7   ethanol producer in a fiscal biennium, including any payment 
 37.8   under this paragraph, must not exceed the total amount the 
 37.9   producer is eligible to receive based on the producer's approved 
 37.10  production capacity.  The provisions of this paragraph apply 
 37.11  only to production losses that occur in quarters beginning after 
 37.12  December 31, 1999. 
 37.13     (k) For the purposes of this subdivision "new production 
 37.14  capacity" means annual ethanol production capacity that was not 
 37.15  allowed under a permit issued by the pollution control agency 
 37.16  prior to July 1, 1997, or for which construction did not begin 
 37.17  prior to July 1, 1997. 
 37.18     Sec. 38.  Minnesota Statutes 2002, section 116O.09, 
 37.19  subdivision 1, is amended to read: 
 37.20     Subdivision 1.  [ESTABLISHMENT.] The agricultural 
 37.21  utilization research institute is established as a nonprofit 
 37.22  corporation under section 501(c)(3) of the Internal Revenue Code 
 37.23  of 1986, as amended.  The agricultural utilization research 
 37.24  institute shall within the department of agriculture to promote 
 37.25  the establishment of new products and product uses and the 
 37.26  expansion of existing markets for the state's agricultural 
 37.27  commodities and products.  The commissioner must establish or 
 37.28  maintain facilities for the institute must be located near an 
 37.29  existing agricultural research facility in the agricultural 
 37.30  region of the state.  
 37.31     Sec. 39.  Minnesota Statutes 2002, section 116O.09, 
 37.32  subdivision 1a, is amended to read: 
 37.33     Subd. 1a.  [BOARD OF DIRECTORS ADVISORY BOARD.] The board 
 37.34  of directors of the agricultural utilization research institute 
 37.35  is In the administration of the institute, the commissioner of 
 37.36  agriculture must consult with an advisory board comprised of: 
 38.1      (1) the chairs of the senate and the house of 
 38.2   representatives committees with jurisdiction over agriculture 
 38.3   policy the dean of the college of agriculture of the University 
 38.4   of Minnesota or the dean's representative; 
 38.5      (2) two representatives of statewide farm organizations; 
 38.6      (3) two representatives of agribusiness, one of whom is a 
 38.7   member of the Minnesota Technology, Inc. board representing 
 38.8   agribusiness; and 
 38.9      (4) three representatives of the commodity promotion 
 38.10  councils. 
 38.11     A member of the advisory board of directors under clauses 
 38.12  (1) to (4) may designate a permanent or temporary replacement 
 38.13  member representing the same constituency. 
 38.14     Sec. 40.  Minnesota Statutes 2002, section 116O.09, 
 38.15  subdivision 2, is amended to read: 
 38.16     Subd. 2.  [DUTIES.] (a) In addition to the duties and 
 38.17  powers assigned to the institutes in section 116O.08, the 
 38.18  agricultural utilization research institute shall: 
 38.19     (1) identify the various market segments characterized by 
 38.20  Minnesota's agricultural industry, address each segment's 
 38.21  individual needs, and identify development opportunities in each 
 38.22  segment; 
 38.23     (2) develop and implement a utilization program for each 
 38.24  segment that addresses its development needs and identifies 
 38.25  techniques to meet those needs; 
 38.26     (3) coordinate research among the public and private 
 38.27  organizations and individuals specifically addressing procedures 
 38.28  to transfer new technology to businesses, farmers, and 
 38.29  individuals; 
 38.30     (4) provide research grants to public and private 
 38.31  educational institutions and other organizations that are 
 38.32  undertaking basic and applied research that would promote the 
 38.33  development of the various agricultural industries; and 
 38.34     (5) provide financial assistance including, but not limited 
 38.35  to:  (i) direct loans, guarantees, interest subsidy payments, 
 38.36  and equity investments; and (ii) participation in loan 
 39.1   participations.  The commissioner of agriculture in consultation 
 39.2   with the advisory board of directors shall establish the terms 
 39.3   and conditions of the financial assistance. 
 39.4      (b) The commissioner in consultation with agricultural 
 39.5   utilization research institute advisory board of directors shall 
 39.6   have the sole approval authority for establishing agricultural 
 39.7   utilization research priorities, requests for proposals to meet 
 39.8   those priorities, awarding of grants, hiring and direction of 
 39.9   personnel, and other expenditures of funds consistent with the 
 39.10  adopted and approved mission and goals of the agricultural 
 39.11  utilization research institute.  The actions and expenditures of 
 39.12  the agricultural utilization research institute are subject to 
 39.13  audit and regular annual report to the legislature in general 
 39.14  and specifically the house of representatives agriculture 
 39.15  committee, the senate agriculture and rural development 
 39.16  committee, the house of representatives environment and natural 
 39.17  resources finance committee, and the senate environment and 
 39.18  agriculture budget division. 
 39.19     Sec. 41.  Minnesota Statutes 2002, section 116O.09, 
 39.20  subdivision 3, is amended to read: 
 39.21     Subd. 3.  [STAFF.] The commissioner in consultation with 
 39.22  the advisory board of directors shall hire staff for the 
 39.23  agricultural utilization research institute.  Persons employed 
 39.24  by the agricultural utilization research institute are not state 
 39.25  employees and may participate in state retirement, deferred 
 39.26  compensation, insurance, or other plans that apply to state 
 39.27  employees generally and are subject to regulation by the state 
 39.28  campaign finance and public disclosure board. 
 39.29     Sec. 42.  Minnesota Statutes 2002, section 116O.09, 
 39.30  subdivision 8, is amended to read: 
 39.31     Subd. 8.  [CHAIR.] The advisory board of directors shall 
 39.32  annually elect from among its members a chair and other officers 
 39.33  necessary for the performance of its duties. 
 39.34     Sec. 43.  Minnesota Statutes 2002, section 116O.09, 
 39.35  subdivision 9, is amended to read: 
 39.36     Subd. 9.  [MEETINGS.] The advisory board of directors shall 
 40.1   meet at least twice each year and may hold additional meetings 
 40.2   upon giving notice in accordance with the bylaws of the 
 40.3   institute chapter 13D.  Board meetings are subject to chapter 
 40.4   13D, except subdivision 1b as it pertains to financial 
 40.5   information, business plans, income and expense projections, 
 40.6   customer lists, market and feasibility studies, and trade secret 
 40.7   information as defined by section 13.37, subdivision 1, 
 40.8   paragraph (b). 
 40.9      Sec. 44.  Minnesota Statutes 2002, section 116O.09, 
 40.10  subdivision 12, is amended to read: 
 40.11     Subd. 12.  [FUNDS.] The institute may accept and use gifts, 
 40.12  grants, or contributions from any source.  Unless otherwise 
 40.13  restricted by the terms of a gift or bequest, the 
 40.14  board institute may sell, exchange, or otherwise dispose of and 
 40.15  invest or reinvest the money, securities, or other property 
 40.16  given or bequested to it.  The principal of these funds, the 
 40.17  income from them, and all other revenues received by it from any 
 40.18  nonstate source must be placed in the depositories the board 
 40.19  determines and is subject to expenditure for the board's 
 40.20  institute's purposes.  Expenditures of more than $25,000 must be 
 40.21  approved by the full board. 
 40.22     Sec. 45.  Minnesota Statutes 2002, section 116O.09, 
 40.23  subdivision 13, is amended to read: 
 40.24     Subd. 13.  [ACCOUNTS; AUDITS DEFINITIONS.] The institute 
 40.25  may establish funds and accounts that it finds convenient.  The 
 40.26  board shall provide for and pay the cost of an independent 
 40.27  annual audit of its official books and records by the 
 40.28  legislative auditor subject to sections 3.971 and 3.972.  A copy 
 40.29  of this audit shall be filed with the secretary of state. 
 40.30     For purposes of this section, "institute" means the 
 40.31  agricultural utilization research institute established under 
 40.32  this section and "board of directors" means the board of 
 40.33  directors of the agricultural utilization research 
 40.34  institute commissioner" means the commissioner of agriculture. 
 40.35     Sec. 46.  Minnesota Statutes 2002, section 116O.09, is 
 40.36  amended by adding a subdivision to read: 
 41.1      Subd. 14.  [TRANSFER.] The commissioner of administration, 
 41.2   in consultation with the commissioner of agriculture and the 
 41.3   commissioner of the department of employee relations, shall take 
 41.4   measures necessary to transfer the functions and the personnel 
 41.5   from the corporation established under this section to the 
 41.6   department of agriculture.  It is the intention of the 
 41.7   legislature that employees and assets of the institute shall be 
 41.8   treated as if the institute had been an agency of the state 
 41.9   since its inception. 
 41.10     Sec. 47.  [REPEALER.] 
 41.11     Minnesota Statutes 2002, sections 17.101, subdivision 5; 
 41.12  17.110; 18.51; 18.52; 18.53; 18.54; 18.79, subdivisions 1, 4, 7, 
 41.13  and 8; 18B.065, subdivision 5; 41A.09, subdivisions 1, 1a, 6, 7, 
 41.14  and 8, are repealed. 
 41.15     Sec. 48.  [EFFECTIVE DATE.] 
 41.16     Except as otherwise provided, this act is effective July 1, 
 41.17  2003.