1.1 A bill for an act
1.2 relating to agriculture; changing the scope of the
1.3 value-added agricultural product processing and
1.4 marketing grant program; establishing a certification
1.5 pilot program; including bison in certain definitions
1.6 of livestock; changing meeting provisions and duties
1.7 of the board of grain standards; expanding a
1.8 grants-in-aid program; changing certain fees; making
1.9 technical changes to pesticide and fertilizer laws;
1.10 changing certain reimbursement payments; changing seed
1.11 testing provisions; providing for delegation of
1.12 certain duties; clarifying the scope of certain
1.13 regulation of wholesale produce dealers; updating
1.14 certain food standards; simplifying certain language;
1.15 providing for uniformity in meat and poultry
1.16 inspection; changing certain reporting requirements;
1.17 increasing the amount of livestock dealer bonds;
1.18 changing rural finance authority loan provisions;
1.19 clarifying status of certain grain buying
1.20 transactions; changing certain grain storage
1.21 provisions; changing the corporate and partnership
1.22 farming law; providing alternative seed potato
1.23 regulation in Clearwater county; amending Minnesota
1.24 Statutes 1998, sections 17.101, subdivision 5; 17A.03,
1.25 subdivision 5; 17A.05, subdivision 2; 17B.07; 17B.12;
1.26 18.023, subdivision 3a; 18C.005, subdivision 34, and
1.27 by adding subdivisions; 18C.201, by adding
1.28 subdivisions; 18C.215, subdivisions 1, 2, and by
1.29 adding a subdivision; 18C.411, subdivision 1; 18C.421,
1.30 subdivision 1; 18D.201, subdivision 3; 18D.331, by
1.31 adding a subdivision; 18E.04, subdivision 4; 21.86,
1.32 subdivision 1; 27.01, subdivision 8; 27.19,
1.33 subdivision 1; 31.101, as amended; 31.102, subdivision
1.34 1; 31.103, subdivision 1; 31.104; 31.632; 31.633,
1.35 subdivision 1; 31.651; 31A.02, subdivisions 5, 6, 10,
1.36 13, and 14; 31A.03; 31A.05; 31A.06; 31A.07,
1.37 subdivisions 1 and 2; 31A.08; 31A.10; 31A.13; 31A.16;
1.38 31A.17; 31B.02, subdivision 4; 41B.03, subdivisions 1
1.39 and 2; 41B.039, subdivision 2; 41B.04, subdivision 8;
1.40 41B.042, subdivision 4; 41B.043, subdivision 2;
1.41 41B.045, subdivision 2; 223.16, subdivision 5; 223.17,
1.42 subdivision 5; 223.175; 232.21, by adding a
1.43 subdivision; 232.23, subdivisions 1, 3, and 6; 500.24,
1.44 subdivisions 3a, 3b, 4, and 5; and 500.245,
1.45 subdivision 2; Minnesota Statutes 1999 Supplement,
1.46 sections 17B.15, subdivision 1; 28A.075; 31A.01;
2.1 31A.15, subdivision 1; 31B.07, subdivision 3; 500.24,
2.2 subdivisions 2 and 3; and 500.245, subdivision 1;
2.3 proposing coding for new law in Minnesota Statutes,
2.4 chapter 17.
2.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
2.6 Section 1. Minnesota Statutes 1998, section 17.101,
2.7 subdivision 5, is amended to read:
2.8 Subd. 5. [VALUE-ADDED AGRICULTURAL PRODUCT PROCESSING AND
2.9 MARKETING GRANT PROGRAM.] (a) For purposes of this section:
2.10 (1) "agricultural commodity" means a material produced for
2.11 use in or as food, feed, seed, or fiber and includes crops for
2.12 fiber, food, oilseeds, seeds, livestock, livestock products,
2.13 dairy, dairy products, poultry, poultry products, and other
2.14 products or by-products of the farm produced for the same or
2.15 similar use, except ethanol; and
2.16 (2) "agricultural product processing facility" means land,
2.17 buildings, structures, fixtures, and improvements located or to
2.18 be located in Minnesota and used or operated primarily for the
2.19 processing or production of marketable products from
2.20 agricultural commodities produced in Minnesota.
2.21 (b) The commissioner shall establish and implement a
2.22 value-added agricultural product processing and marketing grant
2.23 program to help farmers finance new cooperatives that organize
2.24 for the purposes of operating agricultural product processing
2.25 facilities and for marketing activities related to the sale and
2.26 distribution of processed agricultural products.
2.27 (c) To be eligible for this program a grantee must:
2.28 (1) be a cooperative organized under chapter 308A;
2.29 (2) certify that all of the control and equity in the
2.30 cooperative is from farmers as defined in section 500.24,
2.31 subdivision 2, who are actively engaged in agricultural
2.32 commodity production;
2.33 (3) be operated primarily for the processing of
2.34 agricultural commodities produced in Minnesota;
2.35 (4) receive agricultural commodities produced primarily by
2.36 shareholders or members of the cooperative; and
2.37 (5) have no direct or indirect involvement in the
3.1 production of agricultural commodities.
3.2 (d) The commissioner may receive applications from and make
3.3 grants up to $50,000 for feasibility, marketing
3.4 analysis, assistance with organizational development, financing
3.5 and managing new cooperatives, product development, development
3.6 of business and marketing plans, and predesign of
3.7 facilities including site analysis, development of bid
3.8 specifications, preliminary blueprints and schematics, and
3.9 completion of purchase agreements and other necessary legal
3.10 documents to eligible cooperatives. The commissioner shall give
3.11 priority to applicants who use the grants for planning costs
3.12 related to an application for financial assistance from the
3.13 United States Department of Agriculture, Rural Business -
3.14 Cooperative Service.
3.15 Sec. 2. [17.1025] [MINNESOTA CERTIFICATION PROGRAM.]
3.16 In cooperation with the University of Minnesota, the
3.17 department of trade and economic development, and the board of
3.18 animal health, the commissioner shall establish a pilot program
3.19 to certify agricultural production methods and agricultural
3.20 products grown or processed within the state to assure the
3.21 integrity of claims made by participating businesses. The
3.22 commissioner may select and cooperate with private organizations
3.23 that have established procedures and safeguards to justify
3.24 claimed characteristics of the production process or the final
3.25 certified product to conduct certification activities for third
3.26 party producers.
3.27 The commissioner may establish guidelines for the
3.28 certification program, which are not subject to chapter 14. The
3.29 commissioner shall submit a report on the pilot program to the
3.30 legislature by February 1, 2001.
3.31 Sec. 3. Minnesota Statutes 1998, section 17A.03,
3.32 subdivision 5, is amended to read:
3.33 Subd. 5. [LIVESTOCK.] "Livestock" means cattle, sheep,
3.34 swine, horses intended for slaughter, mules, farmed cervidae, as
3.35 defined in section 17.451, subdivision 2, llamas, as defined in
3.36 section 17.455, subdivision 2, ratitae, as defined in section
4.1 17.453, subdivision 3, bison (buffalo), and goats.
4.2 Sec. 4. Minnesota Statutes 1998, section 17A.05,
4.3 subdivision 2, is amended to read:
4.4 Subd. 2. [LIVESTOCK DEALERS.] The amount of each livestock
4.5 dealer bond filed with the commissioner shall be not less
4.6 than $5,000 $10,000 or such larger amount as required, based on
4.7 the commissioner's consideration of the principal's financial
4.8 statement, the volume of business reported, or any other factor
4.9 the commissioner deems pertinent for the protection of the
4.10 public. Each such bond shall contain the condition clause
4.11 applicable when the principal buys on commission or as a
4.12 dealer. A livestock dealer's bond shall be executed on a form
4.13 furnished by the commissioner or in accordance with the Packers
4.14 and Stockyards Act, 1921, as amended, (United States Code, title
4.15 7, section 181 et seq.).
4.16 When a bond is executed on a state form furnished by the
4.17 commissioner, the bond shall be for the protection of both the
4.18 buyer and the seller named in the transaction when the principal
4.19 fails to pay when due for livestock purchased or sold for the
4.20 principal's own account or the account of others and shall be
4.21 limited to the protection of claimants whose residence or
4.22 principal place of livestock business is in the state of
4.23 Minnesota at the time of the transaction. If the bond is filed
4.24 on a form in accordance with the Packers and Stockyards Act, the
4.25 bond shall cover claimants regardless of place of residence.
4.26 Sec. 5. Minnesota Statutes 1998, section 17B.07, is
4.27 amended to read:
4.28 17B.07 [OFFICIAL TITLE OF BOARD; MEETINGS.]
4.29 The official title of the board shall be "The Minnesota
4.30 board of grain standards" and it shall have jurisdiction over
4.31 all grain appeal cases brought before it.
4.32 The board shall meet annually on or before June 15, as
4.33 needed and shall establish the grades of all grain subject to
4.34 state inspection which shall be known as the "Minnesota grades,"
4.35 and all grain received at any public warehouse shall be graded
4.36 accordingly. Such grades shall not be changed before the next
5.1 annual meeting without the concurrence of at least two members
5.2 of the board. At the time of establishing Minnesota grades, the
5.3 board also shall adopt such rules, in accordance with the
5.4 Administrative Procedure Act, as it deems necessary for the
5.5 enforcement of this section and section 17B.06. In establishing
5.6 the grades, in addition to the physical qualities of the grain,
5.7 there shall be taken into consideration the milling and
5.8 bread-producing quality of all grain products used as human
5.9 food. The board shall determine the grade, and dockage, if any,
5.10 of all grain in all cases where appeals from the decisions of
5.11 the chief inspector have been taken and for such purpose they
5.12 may request fresh samples of such grain to be furnished directly
5.13 to the board. Dockage shall be considered as being of two
5.14 classes; first, that having value and second, that having no
5.15 value. At the annual meeting the board shall ascertain and
5.16 determine what dockage contained in grain is of value and
5.17 publish a list thereof in connection with the publication of the
5.18 Minnesota grades. Any foreign content of the grain shall not be
5.19 considered in establishing the grade. Whenever grain containing
5.20 dockage of value is sold to any public local warehouse or mill,
5.21 terminal warehouse, or to any flour mill located in St. Paul,
5.22 Minneapolis, or Duluth, or any other point within the state,
5.23 which is now or may hereafter be designated as a terminal point,
5.24 such sale shall not be considered to include such dockage of
5.25 value, but such dockage shall be paid for at its market value or
5.26 shall be returned to the vendor of said grain at the option of
5.27 the vendee.
5.28 Sec. 6. Minnesota Statutes 1998, section 17B.12, is
5.29 amended to read:
5.30 17B.12 [APPEALS; PROCEDURE.]
5.31 Any owner, consignee, or shipper of grain, or any warehouse
5.32 operator, who is dissatisfied with the inspection of grain may
5.33 appeal to the board of grain standards by filing a notice of
5.34 such appeal with the commissioner and paying a fee, to be fixed
5.35 by the commissioner, which shall be refunded if the appeal is
5.36 sustained. The commissioner shall forthwith promptly transmit
6.1 the notice to said the board of grain standards. The decision
6.2 of said the board, fixing the grade of such the grains shall
6.3 be is final.
6.4 Sec. 7. Minnesota Statutes 1999 Supplement, section
6.5 17B.15, subdivision 1, is amended to read:
6.6 Subdivision 1. [ADMINISTRATION; APPROPRIATION.] The fees
6.7 for inspection and weighing shall be fixed by the commissioner
6.8 and be a lien upon the grain. The commissioner shall set fees
6.9 for all inspection and weighing in an amount adequate to pay the
6.10 expenses of carrying out and enforcing the purposes of sections
6.11 17B.01 to 17B.23, including the portion of general support costs
6.12 and statewide indirect costs of the agency attributable to that
6.13 function, with a reserve sufficient for up to six months. The
6.14 commissioner shall review the fee schedule twice each year. Fee
6.15 adjustments are not subject to chapter 14. Payment shall be
6.16 required for services rendered. If the grain is in transit, the
6.17 fees shall be paid by the carrier and treated as advance
6.18 charges, and, if received for storage, the fees shall be paid by
6.19 the warehouse operator, and added to the storage charges.
6.20 All fees collected and all fines and penalties for
6.21 violation of any provision of this chapter shall be deposited in
6.22 the grain inspection and weighing account, which is created in
6.23 the agricultural fund for carrying out the purpose of sections
6.24 17B.01 to 17B.23. The money in the account, including interest
6.25 earned on the account, is annually appropriated to the
6.26 commissioner of agriculture to administer the provisions of
6.27 sections 17B.01 to 17B.23. When money from any other account is
6.28 used to administer sections 17B.01 to 17B.23, the commissioner
6.29 shall notify the chairs of the agriculture, environment and
6.30 natural resources finance, and ways and means committees of the
6.31 house of representatives; the agriculture and rural development
6.32 and finance committees of the senate; and the finance division
6.33 of the environment and natural resources committee of the senate.
6.34 Sec. 8. Minnesota Statutes 1998, section 18.023,
6.35 subdivision 3a, is amended to read:
6.36 Subd. 3a. [GRANTS TO MUNICIPALITIES.] (a) The commissioner
7.1 may, in the name of the state and within the limit of
7.2 appropriations provided, make grants-in-aid to a municipality
7.3 with an approved disease control program for the partial funding
7.4 of municipal sanitation and reforestation programs to replace
7.5 trees lost to disease or natural disaster. The commissioner may
7.6 make grants-in-aid to any home rule charter or statutory city,
7.7 or any special purpose park and recreation board organized under
7.8 a charter of a city of the first class or any nonprofit
7.9 corporation serving a city of the first class or any county
7.10 having an approved disease control program for the acquisition
7.11 or implementation of a wood utilization or disposal system.
7.12 (b) The commissioner shall promulgate rules for the
7.13 administration of grants authorized by this subdivision. The
7.14 rules shall establish and contain as a minimum:
7.15 (1) Procedures for grant applications;
7.16 (2) Conditions and procedures for the administration of
7.17 grants;
7.18 (3) Criteria of eligibility for grants including, but not
7.19 limited to, those specified in this subdivision; and
7.20 (4) Other matters the commissioner may find necessary to
7.21 the proper administration of the grant program.
7.22 (c) Grants-in-aid payments for wood utilization and
7.23 disposal systems made by the commissioner pursuant to this
7.24 subdivision shall not exceed 50 percent of the total cost of the
7.25 system. Grants for sanitation and reforestation shall be
7.26 combined into one grant program. Grants to any municipality for
7.27 sanitation shall not exceed 50 percent of sanitation costs
7.28 approved by the commissioner including any amount of sanitation
7.29 costs paid by special assessments, ad valorem taxes, federal
7.30 grants or other funds. A municipality shall not specially
7.31 assess a property owner any amount greater than the amount of
7.32 the tree's sanitation cost minus the amount of the tree's
7.33 sanitation cost reimbursed by the commissioner. Grants to
7.34 municipalities for reforestation shall not exceed 50 percent of
7.35 the cost, but not more than $50 per tree, of trees planted
7.36 pursuant to the reforestation program; provided that a
8.1 reforestation grant to any county may include 90 percent of the
8.2 cost, but not more than $60 per tree, of the first 50 trees
8.3 planted on public property in a town not described in
8.4 subdivision 1 and of less than 1,000 population upon the town's
8.5 application to the county. Reforestation grants to towns and
8.6 home rule charter or statutory cities as described in
8.7 subdivision 1 of less than 4,000 population with an approved
8.8 disease control program may include 90 percent of the cost, but
8.9 not more than $60 per tree, of the first 50 trees planted on
8.10 public property with the approval of the 1979 application. The
8.11 governing body of any municipality which receives a
8.12 reforestation grant pursuant to this section shall appoint up to
8.13 seven residents of the municipality or designate an existing
8.14 municipal board or committee to serve as a reforestation
8.15 advisory committee to advise the governing body of the
8.16 municipality in the administration of the reforestation
8.17 program. For the purpose of this subdivision, "cost" shall not
8.18 include the value of a gift or dedication of trees required by a
8.19 municipal ordinance but shall include documented "in kind"
8.20 services or voluntary work for municipalities with a population
8.21 of less than 1,000 according to the most recent federal census.
8.22 (d) Based upon estimates submitted by the municipality to
8.23 the commissioner, which shall state the estimated costs of
8.24 sanitation and reforestation in the succeeding quarter under an
8.25 approved program, the commissioner shall direct quarterly
8.26 advance payments to be made by the state to the municipality
8.27 commencing April 1, 1979. The commissioner shall direct
8.28 adjustment of any overestimate in a succeeding quarter. A
8.29 municipality may elect to receive the proceeds of its sanitation
8.30 and reforestation grants on a periodic cost reimbursement basis.
8.31 (e) A home rule charter or statutory city, or county
8.32 outside the metropolitan area or any municipality, as defined in
8.33 subdivision 1, may submit an application for a grant authorized
8.34 by this subdivision concurrently with its request for approval
8.35 of a disease control program.
8.36 Sec. 9. Minnesota Statutes 1998, section 18C.005, is
9.1 amended by adding a subdivision to read:
9.2 Subd. 1a. [ANHYDROUS AMMONIA.] "Anhydrous ammonia" means a
9.3 compound formed by the chemical combination of the elements
9.4 nitrogen and hydrogen in the molar proportion of one part
9.5 nitrogen to three parts hydrogen. This relationship is shown by
9.6 the chemical formula, NH3. On a weight basis, the ratio is 14
9.7 parts nitrogen to three parts hydrogen or approximately 82
9.8 percent nitrogen to 18 percent hydrogen. Anhydrous ammonia may
9.9 exist in either a gaseous or a liquid state.
9.10 Sec. 10. Minnesota Statutes 1998, section 18C.005, is
9.11 amended by adding a subdivision to read:
9.12 Subd. 7a. [CUSTOM BLEND FERTILIZER.] "Custom blend
9.13 fertilizer" means a fertilizer blended according to the
9.14 specifications that are furnished to a distributor by a consumer
9.15 prior to blending.
9.16 Sec. 11. Minnesota Statutes 1998, section 18C.005,
9.17 subdivision 34, is amended to read:
9.18 Subd. 34. [SPECIALTY FERTILIZER.] "Specialty fertilizer"
9.19 means a fertilizer labeled and distributed for, but not limited
9.20 to, the following uses: greenhouses, nurseries, home gardens,
9.21 house plants, lawn fertilizer that is not custom applied,
9.22 shrubs, golf courses, municipal parks, and cemeteries.
9.23 Sec. 12. Minnesota Statutes 1998, section 18C.005, is
9.24 amended by adding a subdivision to read:
9.25 Subd. 35a. [TAMPER.] "Tamper" means action taken by a
9.26 person not authorized to take that action by law or by the owner
9.27 or authorized custodian of an anhydrous ammonia container or of
9.28 equipment where anhydrous ammonia is used, stored, distributed,
9.29 or transported.
9.30 Sec. 13. Minnesota Statutes 1998, section 18C.201, is
9.31 amended by adding a subdivision to read:
9.32 Subd. 6. [ANHYDROUS AMMONIA.] (a) A person may not:
9.33 (1) place, have placed, or possess anhydrous ammonia in a
9.34 container that is not designed, constructed, maintained, and
9.35 authorized to contain or transport anhydrous ammonia;
9.36 (2) transport anhydrous ammonia in a container that is not
10.1 designed, constructed, maintained, and authorized to transport
10.2 anhydrous ammonia;
10.3 (3) use, deliver, receive, sell, or transport a container
10.4 designed and constructed to contain anhydrous ammonia without
10.5 the express consent of the owner or authorized custodian of the
10.6 container; or
10.7 (4) tamper with any equipment or facility used to contain,
10.8 store, or transport anhydrous ammonia.
10.9 (b) For the purposes of this subdivision, containers
10.10 designed and constructed for the storage and transport of
10.11 anhydrous ammonia are described in rules adopted under section
10.12 18C.121, subdivision 1, or in Code of Federal Regulations, title
10.13 49.
10.14 Sec. 14. Minnesota Statutes 1998, section 18C.201, is
10.15 amended by adding a subdivision to read:
10.16 Subd. 7. [NO CAUSE OF ACTION.] (a) Except as provided in
10.17 paragraph (b), a person tampering with anhydrous ammonia
10.18 containers or equipment under subdivision 6 shall have no cause
10.19 of action for damages arising out of the tampering against (1)
10.20 the owner or lawful custodian of the container or equipment; (2)
10.21 a person responsible for the installation or maintenance of the
10.22 container or equipment; or (3) a person lawfully selling or
10.23 offering for sale the anhydrous ammonia.
10.24 (b) Paragraph (a) does not apply to a cause of action
10.25 against a person who unlawfully obtained the anhydrous ammonia
10.26 or anhydrous ammonia container or who possesses the anhydrous
10.27 ammonia or anhydrous ammonia container for any unlawful purpose.
10.28 Sec. 15. Minnesota Statutes 1998, section 18C.215,
10.29 subdivision 1, is amended to read:
10.30 Subdivision 1. [PACKAGED FERTILIZERS.] (a) A person may
10.31 not sell or distribute specialty fertilizer in bags or other
10.32 containers in this state unless a label is placed on or affixed
10.33 to the bag or container stating in a clear, legible, and
10.34 conspicuous form the following information:
10.35 (1) the net weight;
10.36 (2) the brand and grade, except the grade is not required
11.1 if primary nutrients are not claimed;
11.2 (3) the guaranteed analysis;
11.3 (4) the name and address of the guarantor;
11.4 (5) directions for use, except directions for use are not
11.5 required for custom blend specialty fertilizers; and
11.6 (6) a derivatives statement.
11.7 (b) A person may not sell or distribute fertilizer for
11.8 agricultural purposes in bags or other containers in this state
11.9 unless a label is placed on or affixed to the bag or container
11.10 stating in a clear, legible, and conspicuous form the
11.11 information listed in paragraph (a), clauses (1) to (4), except:
11.12 (1) the grade is not required if primary nutrients are not
11.13 claimed; and
11.14 (2) the grade on the label is optional if the fertilizer is
11.15 used only for agricultural purposes and the guaranteed analysis
11.16 statement is shown in the complete form as in section 18C.211.
11.17 (c) The labeled information must appear:
11.18 (1) on the front or back side of the container;
11.19 (2) on the upper one-third of the side of the container;
11.20 (3) on the upper end of the container; or
11.21 (4) printed on a tag affixed to the upper end of the
11.22 container.
11.23 (d) If a person sells a custom blend specialty fertilizer
11.24 in bags or other containers, the information required in
11.25 paragraph (a) must either be affixed to the bag or container as
11.26 required in paragraph (c) or be furnished to the customer on an
11.27 invoice or delivery ticket in written or printed form.
11.28 Sec. 16. Minnesota Statutes 1998, section 18C.215,
11.29 subdivision 2, is amended to read:
11.30 Subd. 2. [BLENDED, MIXED, BULK, AND CUSTOM APPLIED
11.31 FERTILIZER.] (a) A distributor who blends or mixes fertilizer or
11.32 distributes fertilizer, for agricultural use, in bulk, must
11.33 furnish each purchaser with an invoice or delivery ticket in
11.34 written or printed form showing:
11.35 (1) the net weight and guaranteed analysis of each of the
11.36 materials used in the mixture and the name and address of the
12.1 guarantor; or
12.2 (2) the net weight and guaranteed analysis of the final
12.3 mixture and the name and address of the guarantor.
12.4 (b) A person may not custom apply specialty fertilizer in
12.5 this state unless a label, invoice, or delivery ticket is given
12.6 to each purchaser stating in a clear, legible, and conspicuous
12.7 form the following information:
12.8 (1) the net weight, which may be listed as the total net
12.9 weight applied or the net weight applied per unit treated;
12.10 (2) the guaranteed analysis;
12.11 (3) the name and address of the guarantor;
12.12 (4) the number of units treated in square feet, acres, or
12.13 another unit of measure; and
12.14 (5) a derivative statement.
12.15 (c) Copies of invoices or delivery tickets must be kept for
12.16 five years after the sale, delivery, or application.
12.17 Sec. 17. Minnesota Statutes 1998, section 18C.215, is
12.18 amended by adding a subdivision to read:
12.19 Subd. 2a. [INFORMATION TO CUSTOMER.] If a person sells a
12.20 custom blend specialty fertilizer in bulk, the information
12.21 required in subdivision 1, paragraph (a), must be furnished to
12.22 the customer on an invoice or delivery ticket in written or
12.23 printed form.
12.24 Sec. 18. Minnesota Statutes 1998, section 18C.411,
12.25 subdivision 1, is amended to read:
12.26 Subdivision 1. [REGISTRATION REQUIRED.] (a) A person may
12.27 not sell brands or grades of specialty fertilizers, soil
12.28 amendments, or plant amendments in this state unless they are
12.29 registered with the commissioner.
12.30 (b) Registration of the materials is not a warranty by the
12.31 commissioner or the state.
12.32 (c) Specialty fertilizers custom applied are exempt from
12.33 the registration requirements of this section.
12.34 (d) Custom blend specialty fertilizers are exempt from the
12.35 registration requirements of this section if the distributor is
12.36 licensed as required by section 18C.415 and the fertilizer is
13.1 labeled as required by section 18C.215.
13.2 Sec. 19. Minnesota Statutes 1998, section 18C.421,
13.3 subdivision 1, is amended to read:
13.4 Subdivision 1. [SEMIANNUAL STATEMENT.] (a) Each licensed
13.5 distributor of fertilizer and each registrant of a specialty
13.6 fertilizer, soil amendment, or plant amendment must file a
13.7 semiannual statement for the periods ending December 31 and June
13.8 30 with the commissioner on forms furnished by the commissioner
13.9 stating the number of net tons and grade of each raw fertilizer
13.10 material distributed or the number of net tons of each brand or
13.11 grade of fertilizer, soil amendment, or plant amendment
13.12 distributed in this state during the reporting period.
13.13 (b) Tonnage reports are not required to be filed with the
13.14 commissioner from licensees who distributed fertilizer solely by
13.15 custom application.
13.16 (c) A report from a licensee who sells to an ultimate
13.17 consumer must be accompanied by records or invoice copies
13.18 indicating the name of the distributor who paid the inspection
13.19 fee, the net tons received, and the grade or brand name of the
13.20 products received.
13.21 (c) (d) The report is due on or before the last day of the
13.22 month following the close of each reporting period of each
13.23 calendar year.
13.24 (d) (e) The inspection fee at the rate stated in section
13.25 18C.425, subdivision 6, must accompany the statement.
13.26 Sec. 20. Minnesota Statutes 1998, section 18D.201,
13.27 subdivision 3, is amended to read:
13.28 Subd. 3. [INSPECTION REQUESTS BY OTHERS.] (a) A person who
13.29 believes that a violation of this chapter has occurred may
13.30 request an inspection by giving notice to the commissioner of
13.31 the violation. The notice must be in writing, state with
13.32 reasonable particularity the grounds for the notice, and be
13.33 signed by the person making the request. If the pesticide
13.34 application is alleged to have damaged a crop or vegetation, the
13.35 request for inspection must be submitted within 45 days of the
13.36 date of the pesticide application.
14.1 (b) If after receiving a notice of violation the
14.2 commissioner reasonably believes that a violation has occurred,
14.3 the commissioner shall make a special inspection in accordance
14.4 with the provisions of this section as soon as practicable, to
14.5 determine if a violation has occurred.
14.6 (c) An inspection conducted pursuant to a notice under this
14.7 subdivision may cover an entire site and is not limited to the
14.8 portion of the site specified in the notice. If the
14.9 commissioner determines that reasonable grounds to believe that
14.10 a violation occurred do not exist, the commissioner must notify
14.11 the person making the request in writing of the determination.
14.12 Sec. 21. Minnesota Statutes 1998, section 18D.331, is
14.13 amended by adding a subdivision to read:
14.14 Subd. 5. [ANHYDROUS AMMONIA CONTAINMENT, TAMPERING, THEFT,
14.15 TRANSPORT.] A person who knowingly violates section 18C.201,
14.16 subdivision 6, is guilty of a felony and may be sentenced to
14.17 imprisonment for not more than five years, or to payment of a
14.18 fine of not more than $50,000, or both.
14.19 Sec. 22. Minnesota Statutes 1998, section 18E.04,
14.20 subdivision 4, is amended to read:
14.21 Subd. 4. [REIMBURSEMENT PAYMENTS.] (a) The board shall pay
14.22 a person that is eligible for reimbursement or payment under
14.23 subdivisions 1, 2, and 3 from the agricultural chemical response
14.24 and reimbursement account for:
14.25 (1) 90 percent of the total reasonable and necessary
14.26 corrective action costs greater than $1,000 and less than or
14.27 equal to $100,000; and
14.28 (2) 100 percent of the total reasonable and necessary
14.29 corrective action costs greater than $100,000 but less than or
14.30 equal to $200,000;
14.31 (3) 80 percent of the total reasonable and necessary
14.32 corrective action costs greater than $200,000 but less than or
14.33 equal to $300,000; and
14.34 (4) 60 percent of the total reasonable and necessary
14.35 corrective action costs greater than $300,000 but less than or
14.36 equal to $350,000.
15.1 (b) A reimbursement or payment may not be made until the
15.2 board has determined that the costs are reasonable and are for a
15.3 reimbursement of the costs that were actually incurred.
15.4 (c) The board may make periodic payments or reimbursements
15.5 as corrective action costs are incurred upon receipt of invoices
15.6 for the corrective action costs.
15.7 (d) Money in the agricultural chemical response and
15.8 reimbursement account is appropriated to the commissioner to
15.9 make payments and reimbursements directed by the board under
15.10 this subdivision.
15.11 (e) The board may not make reimbursement greater than the
15.12 maximum allowed under paragraph (a) for all incidents on a
15.13 single site which:
15.14 (1) were not reported at the time of release but were
15.15 discovered and reported after July 1, 1989; and
15.16 (2) may have occurred prior to July 1, 1989, as determined
15.17 by the commissioner.
15.18 (f) The board may only reimburse an eligible person for
15.19 separate incidents within a single site if the commissioner
15.20 determines that each incident is completely separate and
15.21 distinct in respect of location within the single site or time
15.22 of occurrence.
15.23 Sec. 23. Minnesota Statutes 1998, section 21.86,
15.24 subdivision 1, is amended to read:
15.25 Subdivision 1. [PROHIBITIONS.] A person may not advertise
15.26 or sell any agricultural, vegetable, flower, or tree and shrub
15.27 seed if:
15.28 (a) Except as provided in clauses (1) to (3), a test to
15.29 determine the percentage of germination required by sections
15.30 21.82 and 21.83 has not been completed within a nine-month
15.31 period, exclusive of the calendar month in which the test was
15.32 completed.
15.33 (1) When advertised or offered for sale as agricultural
15.34 seed, native grass and forb seeds must have been tested for
15.35 percentage of germination as required by section 21.82 within a
15.36 14-month period, exclusive of the calendar month in which the
16.1 test was completed.
16.2 (2) This prohibition does not apply to tree, shrub,
16.3 agricultural, or vegetable seeds packaged in hermetically sealed
16.4 containers. Seeds packaged in hermetically sealed containers
16.5 under the conditions defined by rule may be offered for sale for
16.6 a period of 36 months after the last day of the month that the
16.7 seeds were tested for germination prior to packaging.
16.8 (3) If seeds in hermetically sealed containers are offered
16.9 for sale more than 36 months after the last day of the month in
16.10 which they were tested prior to packaging, they must be retested
16.11 within a nine-month period, exclusive of the calendar month in
16.12 which the retest was completed;
16.13 (b) It is not labeled in accordance with sections 21.82 and
16.14 21.83 or has false or misleading labeling;
16.15 (c) False or misleading advertisement has been used in
16.16 respect to its sale;
16.17 (d) It contains prohibited noxious weed seeds;
16.18 (e) It consists of or contains restricted noxious weed
16.19 seeds in excess of 25 seeds per pound or in excess of the number
16.20 declared on the label attached to the container of the seed or
16.21 associated with the seed;
16.22 (f) It contains more than one percent by weight of all weed
16.23 seeds;
16.24 (g) It contains less than the stated net weight of
16.25 contents;
16.26 (h) It contains less than the stated number of seeds in the
16.27 container;
16.28 (i) It contains any labeling, advertising, or other
16.29 representation subject to sections 21.82 and 21.83 representing
16.30 the seed to be certified unless:
16.31 (1) it has been determined by a seed certifying agency that
16.32 the seed conformed to standards of purity and identity as to
16.33 kind, species, subspecies, or variety, and also that tree seed
16.34 was found to be of the origin and elevation claimed, in
16.35 compliance with the rules pertaining to the seed; and
16.36 (2) the seed bears an official label issued for it by a
17.1 seed certifying agency stating that the seed is of a certified
17.2 class and a specified kind, species, subspecies, or variety;
17.3 (j) It is labeled with a variety name but not certified by
17.4 an official seed certifying agency when it is a variety for
17.5 which a United States certificate of plant variety protection
17.6 has been granted under United States Code, title 7, sections
17.7 2481 to 2486, specifying sale by variety name only as a class of
17.8 certified seed. Seed from a certified lot may be labeled as to
17.9 variety name when used in a blend or mixture by or with approval
17.10 of the owner of the variety; or
17.11 (k) The person whose name appears on the label does not
17.12 have complete records including a file sample of each lot of
17.13 agricultural, vegetable, flower, tree or shrub seed sold in this
17.14 state as required in section 21.84.
17.15 Sec. 24. Minnesota Statutes 1998, section 27.01,
17.16 subdivision 8, is amended to read:
17.17 Subd. 8. [WHOLESALE PRODUCE DEALER.] (a) "Wholesale
17.18 produce dealer" or "dealer at wholesale" means:
17.19 (1) a person who buys from or contracts to buy with a
17.20 seller for production or sale of produce in wholesale lots for
17.21 resale;
17.22 (2) a person engaging in the business of a broker or agent,
17.23 who handles or deals in produce for a commission or fee;
17.24 (3) a truck owner or operator who buys produce in wholesale
17.25 lots for resale; and
17.26 (4) a person engaged in the business of a cannery, food
17.27 manufacturer, or food processor, who purchases produce in
17.28 wholesale lots as a part of that business.
17.29 (b) For purposes of paragraph (a), "wholesale lots" means
17.30 purchases from Minnesota sellers must total more than $12,000
17.31 annually.
17.32 (c) "Wholesale produce dealer" or "dealer at wholesale"
17.33 does not include:
17.34 (1) a truck owner and operator who regularly engages in the
17.35 business of transporting freight, including produce, for a
17.36 transportation fee only, and who does not purchase, contract to
18.1 purchase, or sell produce;
18.2 (2) a marketing cooperative association in which
18.3 substantially all of the voting stock is held by patrons who
18.4 patronize the association and in which at least 75 percent of
18.5 the business of the association is transacted with member or
18.6 stockholder patrons;
18.7 (3) a person who purchases Minnesota seasonally grown
18.8 perishable fresh fruits and vegetables, and pays cash, including
18.9 lawful money of the United States, a cashier's check, a
18.10 certified check, or a bank draft;
18.11 (4) a person who handles and deals in only canned,
18.12 packaged, or processed produce or packaged dairy products that
18.13 are no longer perishable as determined by the commissioner by
18.14 rule; or
18.15 (5) retail merchants who purchase produce, defined in
18.16 subdivision 2, directly from farmers, which in the aggregate
18.17 does not exceed $500 per month.
18.18 Sec. 25. Minnesota Statutes 1998, section 27.19,
18.19 subdivision 1, is amended to read:
18.20 Subdivision 1. [PROHIBITED ACTS.] (a) A person subject to
18.21 the provisions of this section and sections 27.01 to 27.14 may
18.22 not:
18.23 (1) operate or advertise to operate as a dealer at
18.24 wholesale without a license;
18.25 (2) make any false statement or report as to the grade,
18.26 condition, markings, quality, or quantity of produce, as defined
18.27 in section 27.069, received or delivered, or act in any manner
18.28 to deceive a consignor or purchaser;
18.29 (3) refuse to accept a shipment contracted for by the
18.30 person, unless the refusal is based upon the showing of a state
18.31 inspection certificate secured with reasonable promptness after
18.32 the receipt of the shipment showing that the kind and quality of
18.33 produce, as defined in section 27.069, is other than that
18.34 purchased or ordered by the person;
18.35 (4) fail to account or make a settlement for produce within
18.36 the required time;
19.1 (5) violate or fail to comply with the terms or conditions
19.2 of a contract entered into by the person for the purchase,
19.3 production, or sale of produce;
19.4 (6) purchase for a person's own account any produce
19.5 received on consignment, either directly or indirectly, without
19.6 the consent of the consignor;
19.7 (7) issue a false or misleading market quotation, or cancel
19.8 a quotation during the period advertised by the person;
19.9 (8) increase the sales charges on produce shipped to the
19.10 person by means of "dummy" or fictitious sales;
19.11 (9) receive decorative forest products and the products of
19.12 farms and waters from foreign states or countries for sale or
19.13 resale, either within or outside of the state, and give the
19.14 purchaser the impression, through any method of advertising or
19.15 description, that the produce is of Minnesota origin;
19.16 (10) fail to notify in writing all suppliers of produce of
19.17 the protection afforded to suppliers by the person's licensee
19.18 bond, including: availability of a bond, notice requirements,
19.19 and any other conditions of the bond;
19.20 (11) make a false statement to the commissioner on an
19.21 application for license or bond or in response to written
19.22 questions from the commissioner regarding the license or bond;
19.23 (12) commit to pay and not pay in full for all produce
19.24 committed for. A processor may not pay an amount less than the
19.25 full contract price if the crop produced is satisfactory for
19.26 processing and is not harvested for reasons within the
19.27 processor's control. If the processor sets the date for
19.28 planting, then bunching, unusual yields, and a processor's
19.29 inability or unwillingness to harvest must be considered to be
19.30 within the processor's control. Under this clause growers must
19.31 be compensated for passed acreage at the same rate for grade and
19.32 yield as they would have received had the crop been harvested in
19.33 a timely manner minus any contractual provision for green manure
19.34 or feed value. Both parties are excused from payment or
19.35 performance for crop conditions that are beyond the control of
19.36 the parties; or
20.1 (13) discriminate between different sections, localities,
20.2 communities, or cities, or between persons in the same
20.3 community, by purchasing produce from farmers of the same grade,
20.4 quality, and kind, at different prices, except that price
20.5 differentials are allowed if directly related to the costs of
20.6 transportation, shipping, and handling of the produce and a
20.7 person is allowed to meet the prices of a competitor in good
20.8 faith, in the same locality for the same grade, quality, and
20.9 kind of produce. A showing of different prices by the
20.10 commissioner is prima facie evidence of discrimination.
20.11 (b) A separate violation occurs with respect to each
20.12 different person involved, each purchase or transaction
20.13 involved, and each false statement.
20.14 Sec. 26. Minnesota Statutes 1999 Supplement, section
20.15 28A.075, is amended to read:
20.16 28A.075 [DELEGATION TO LOCAL BOARD OF HEALTH.]
20.17 (a) At the request of a local board of health that licensed
20.18 and inspected grocery and convenience stores on January 1, 1999,
20.19 the commissioner must enter into agreements before January 1,
20.20 2001, with local boards of health to delegate to the appropriate
20.21 local board of health the licensing and inspection duties of the
20.22 commissioner pertaining to retail food handlers that are grocery
20.23 or convenience stores. At the request of a local board of
20.24 health that licensed and inspected part of any grocery or
20.25 convenience store on January 1, 1999, the commissioner must
20.26 enter into agreements before July 1, 2001, with local boards of
20.27 health to delegate to the appropriate local board of health the
20.28 licensing and inspection duties of the commissioner pertaining
20.29 to retail food handlers that are grocery or convenience stores.
20.30 Retail grocery or convenience stores inspected under the state
20.31 meat inspection program of chapter 31A are exempt from
20.32 delegation.
20.33 (b) A local board of health must adopt an ordinance
20.34 consistent with the Minnesota Food Code, Minnesota Rules,
20.35 chapter 4626, for all of its jurisdiction to regulate grocery
20.36 and convenience stores and the ordinance (Food Code) must not be
21.1 in conflict with standards set in law or rule.
21.2 Sec. 27. Minnesota Statutes 1998, section 31.101, as
21.3 amended by Laws 1999, chapter 231, section 55, is amended to
21.4 read:
21.5 31.101 [RULES; HEARINGS; UNIFORMITY WITH FEDERAL LAW.]
21.6 Subdivision 1. [AUTHORITY.] The authority to commissioner
21.7 may promulgate and amend rules for the efficient administration
21.8 and enforcement of the Minnesota Food Law is vested in the
21.9 commissioner and is in addition to authority granted in sections
21.10 31.10, 31.11, and 31.12. Such The rules when applicable shall
21.11 must conform, insofar as practicable and consistent with state
21.12 law, with those promulgated under the federal law. This
21.13 rulemaking authority is in addition to that in sections 31.10,
21.14 31.11, and 31.12. Rules adopted under this section may be
21.15 amended by the commissioner under chapter 14, subject to the
21.16 limitation in subdivision 7.
21.17 Subd. 2. [HEARINGS.] Hearings authorized or required by
21.18 law shall must be conducted by the commissioner or such an
21.19 officer, agent, or employee as the commissioner may designate
21.20 designates for the purpose.
21.21 Subd. 3. [FEDERAL PESTICIDE CHEMICAL REGULATIONS RULES.]
21.22 Federal pesticide chemical regulations and amendments thereto in
21.23 effect on April 1, 1997 2000, adopted under authority of the
21.24 Federal Insecticide, Fungicide and Rodenticide Act, as provided
21.25 by United States Code, title 7, chapter 6, are the pesticide
21.26 chemical rules in this state. Such rules may be amended by the
21.27 commissioner proceeding in accordance with the Administrative
21.28 Procedure Act.
21.29 Subd. 4. [FEDERAL FOOD ADDITIVE REGULATIONS RULES.]
21.30 Federal food additive regulations and amendments thereto in
21.31 effect on April 1, 1997 2000, as provided by Code of Federal
21.32 Regulations, title 21, parts 170 to 199, are the food additive
21.33 rules in this state. Such rules may be amended by the
21.34 commissioner proceeding in accordance with the Administrative
21.35 Procedure Act.
21.36 Subd. 5. [FEDERAL COLOR ADDITIVE REGULATIONS RULES.]
22.1 Federal color additive regulations and amendments thereto in
22.2 effect on April 1, 1997 2000, as provided by Code of Federal
22.3 Regulations, title 21, parts 70 to 82, are the color additive
22.4 rules in this state. Such rules may be amended by the
22.5 commissioner proceeding in accordance with the Administrative
22.6 Procedure Act.
22.7 Subd. 6. [FEDERAL SPECIAL DIETARY USE REGULATIONS RULES.]
22.8 Federal special dietary use regulations and amendments thereto
22.9 in effect on April 1, 1997 2000, as provided by Code of Federal
22.10 Regulations, title 21, parts 104 and 105, are the special
22.11 dietary use rules in this state. Such rules may be amended by
22.12 the commissioner proceeding in accordance with the
22.13 Administrative Procedure Act.
22.14 Subd. 7. [FAIR PACKAGING AND LABELING ACT REGULATIONS
22.15 RULES.] Federal regulations and amendments thereto in effect on
22.16 April 1, 1997 2000, adopted under the Fair Packaging and
22.17 Labeling Act, as provided by United States Code, title 15,
22.18 sections 1451 to 1461, are the rules in this state. Such rules
22.19 may be amended by the commissioner proceeding in accordance with
22.20 the Administrative Procedure Act; provided that The commissioner
22.21 shall may not adopt amendments to such these rules or adopt
22.22 other rules which are contrary to the labeling requirements for
22.23 the net quantity of contents required pursuant to section 4 of
22.24 the Fair Packaging and Labeling Act and the
22.25 regulations promulgated thereunder adopted under that act.
22.26 Subd. 8. [FOOD AND DRUGS REGULATIONS RULES.] Applicable
22.27 federal regulations including recodification contained in Code
22.28 of Federal Regulations, title 21, parts 0-1299, Food and Drugs,
22.29 in effect April 1, 1997 2000, and not otherwise adopted herein,
22.30 also are adopted as food rules of this state. Such rules may be
22.31 amended by the commissioner in accordance with the
22.32 Administrative Procedure Act.
22.33 Subd. 9. [FISHERY PRODUCTS RULES.] Federal regulations in
22.34 effect on April 1, 1997 2000, as provided by Code of Federal
22.35 Regulations, title 50, parts 260 to 267, are incorporated as
22.36 part of the fishery products rules in this state for state
23.1 inspections performed under a cooperative agreement with the
23.2 United States Department of Commerce, National Marine Fisheries
23.3 Service. The rules may be amended by the commissioner under
23.4 chapter 14.
23.5 Subd. 10. [MEAT AND POULTRY RULES.] Federal regulations in
23.6 effect on January April 1, 1999 2000, as provided by Code of
23.7 Federal Regulations, title 9, part 301, et seq., are
23.8 incorporated as part of the meat and poultry rules in this
23.9 state. The rules may be amended by the commissioner under
23.10 chapter 14.
23.11 Subd. 11. [STANDARDS FOR FRESH FRUITS, VEGETABLES, AND
23.12 OTHER PRODUCTS.] Federal regulations in effect on April 1,
23.13 1997 2000, as provided by Code of Federal Regulations, title 7,
23.14 parts 51 and 52, are incorporated as part of the rules in this
23.15 state. The rules may be amended by the commissioner under
23.16 chapter 14.
23.17 Sec. 28. Minnesota Statutes 1998, section 31.102,
23.18 subdivision 1, is amended to read:
23.19 Subdivision 1. [IDENTITY, QUANTITY, AND FILL OF CONTAINER
23.20 RULES.] Federal definitions and standards of identity, quality,
23.21 and fill of container and amendments thereto, in effect on April
23.22 1, 1997 2000, adopted under authority of the federal act, are
23.23 the definitions and standards of identity, quality, and fill of
23.24 container in this state. Such The rules may be amended by the
23.25 commissioner proceeding in accordance with the Administrative
23.26 Procedure Act under chapter 14.
23.27 Sec. 29. Minnesota Statutes 1998, section 31.103,
23.28 subdivision 1, is amended to read:
23.29 Subdivision 1. [CONSUMER COMMODITIES LABELING RULES.] All
23.30 labels of consumer commodities shall must conform with the
23.31 requirements for the declaration of net quantity of contents of
23.32 section 4 of the Fair Packaging and Labeling Act (United States
23.33 Code, title 15, section 1451 et seq.) and federal regulations in
23.34 effect on April 1, 1997 2000, promulgated pursuant
23.35 thereto adopted under authority of that act, except to the
23.36 extent that the commissioner shall exercise authority to amend
24.1 such amends the rules in accordance with the Administrative
24.2 Procedure Act under chapter 14. Consumer commodities exempted
24.3 from the requirements of section 4 of the Fair Packaging and
24.4 Labeling Act shall are also be exempt from this subdivision.
24.5 Sec. 30. Minnesota Statutes 1998, section 31.104, is
24.6 amended to read:
24.7 31.104 [FOOD LABELING EXEMPTION RULES.]
24.8 The commissioner shall promulgate rules exempting from any
24.9 labeling requirement food which is, in accordance with the
24.10 practice of the trade, to be processed, labeled or repacked in
24.11 substantial quantities at establishments other than those where
24.12 originally processed or packed, on condition that such food is
24.13 not adulterated or misbranded upon removal from such processing,
24.14 labeling or repacking establishment.
24.15 Federal regulations in effect on April 1, 1997 2000,
24.16 adopted under authority of the federal act relating to such
24.17 exemptions are effective in this state unless the commissioner
24.18 shall exercise authority to amend such regulations amends them.
24.19 The commissioner also may promulgate amendments to amend
24.20 existing rules concerning exemptions in accordance with the
24.21 Administrative Procedure Act under chapter 14.
24.22 Sec. 31. Minnesota Statutes 1998, section 31.632, is
24.23 amended to read:
24.24 31.632 [MINNESOTA APPROVED MEATS; USE OF LABEL.]
24.25 The commissioner may authorize, pursuant to rules
24.26 promulgated in the manner provided by law, the use of the label
24.27 "Minnesota Approved" on meats and, meat products, poultry, and
24.28 poultry products processed by persons licensed under sections
24.29 31.51 to 31.58, or by establishments under the inspection
24.30 program of the United States Department of Agriculture, if the
24.31 ingredients of such the poultry, poultry products, meats, and
24.32 meat products are meat, meat by-products, poultry, poultry
24.33 products, or meat food products which have been inspected and
24.34 passed by the United States Department of Agriculture, or the
24.35 Minnesota department of agriculture and further if such the
24.36 poultry, poultry products, meats, and meat products, after such
25.1 processing, are sound, healthful, wholesome, and fit for human
25.2 food. A person or establishment desiring to label poultry,
25.3 poultry products, meats, and meat products as provided in this
25.4 section shall apply to the commissioner for authority to do so.
25.5 The commissioner shall grant this authority to the applicant if
25.6 the applicant complies with the provisions of this section and
25.7 rules promulgated pursuant to this section. A person using the
25.8 label "Minnesota Approved" on poultry, poultry products, meat
25.9 and, or meat products contrary to law is guilty of a misdemeanor.
25.10 Sec. 32. Minnesota Statutes 1998, section 31.633,
25.11 subdivision 1, is amended to read:
25.12 Subdivision 1. [MENU REQUIREMENT.] Any restaurant, eating
25.13 place, or other establishment serving meat or poultry in any
25.14 form to the public, which meat that has any filler or meat or
25.15 poultry substitute added to it or incorporated in it, shall
25.16 clearly and prominently indicate on its menu or bill of fare the
25.17 meat entrees that contain filler or meat or poultry substitutes.
25.18 Sec. 33. Minnesota Statutes 1998, section 31.651, is
25.19 amended to read:
25.20 31.651 [KOSHER PRODUCTS, UNLAWFUL SALE.]
25.21 Subdivision 1. [KOSHER REQUIREMENTS.] No person shall sell
25.22 or expose for sale any poultry, poultry products, meat, or meat
25.23 preparations and falsely represent the same to be kosher,
25.24 whether such poultry, poultry products, meat, or meat
25.25 preparations be raw or prepared for human consumption; nor shall
25.26 the person permit any such products or the contents of any
25.27 package or container to be labeled or to have inscribed thereon
25.28 the word "kosher" in any language unless such products shall
25.29 have been prepared or processed in accordance with orthodox
25.30 Hebrew religious requirements sanctioned by a recognized
25.31 rabbinical council.
25.32 Subd. 2. [NOTICE REQUIRED.] Any person who sells or
25.33 exposes for sale in the same place of business both kosher and
25.34 nonkosher poultry, meat, or meat preparations, either raw or
25.35 prepared for human consumption, shall indicate on window signs
25.36 and all display advertising, in block letters at least four
26.1 inches in height, "kosher and nonkosher meat and poultry sold
26.2 here"; and shall display over each kind of poultry, meat, or
26.3 meat preparation so exposed a sign, in block letters at least
26.4 two inches in height, reading, "kosher meat," or "kosher
26.5 poultry," "nonkosher meat," or "nonkosher poultry," as the case
26.6 may be; provided that subdivision 2 shall not apply to persons
26.7 selling or offering for sale kosher poultry, poultry products,
26.8 meats, or meat products solely in separate consumer packages,
26.9 which have been prepackaged and properly labeled "kosher."
26.10 Subd. 3. [PRESUMPTION.] Possession of nonkosher poultry,
26.11 poultry products, meat, or meat preparations in any place of
26.12 business shall be presumptive evidence that the person in
26.13 possession thereof exposes the same for sale.
26.14 Subd. 4. [PRIMA FACIE EVIDENCE.] The absence of a duly
26.15 sanctioned kosher "plumba," mark, stamp, tag, brand, or label
26.16 from any poultry, poultry products, meat, meat preparation, or
26.17 food product shall be prima facie evidence that such product is
26.18 nonkosher.
26.19 Sec. 34. Minnesota Statutes 1999 Supplement, section
26.20 31A.01, is amended to read:
26.21 31A.01 [POLICY.]
26.22 Meat, poultry, poultry food products, and meat food
26.23 products are an important source of the nation's total supply of
26.24 food. It is essential in the public interest that the health
26.25 and welfare of consumers be protected by assuring that meat,
26.26 poultry, and meat food products distributed to them are
26.27 wholesome, unadulterated, and properly marked, labeled, and
26.28 packaged. Unwholesome, adulterated, or misbranded meat,
26.29 poultry, poultry food products, or meat food products injure the
26.30 public welfare, destroy markets for wholesome, unadulterated,
26.31 and properly labeled and packaged meat, poultry, poultry food
26.32 products, and meat food products, and result in losses to
26.33 livestock producers and processors of meat, poultry, poultry
26.34 food products, and meat food products and injury to consumers.
26.35 Unwholesome, adulterated, mislabeled, or deceptively packaged
26.36 articles can be sold at lower prices and compete unfairly with
27.1 wholesome, unadulterated, and properly labeled and packaged
27.2 articles, to the detriment of consumers and the general public.
27.3 Regulation by the commissioner and cooperation between this
27.4 state and the United States under this chapter are appropriate
27.5 to protect the health and welfare of consumers and accomplish
27.6 the purposes of this chapter.
27.7 Sec. 35. Minnesota Statutes 1998, section 31A.02,
27.8 subdivision 5, is amended to read:
27.9 Subd. 5. [CUSTOM PROCESSING.] "Custom processing" means
27.10 slaughtering, eviscerating, dressing, or processing an animal or
27.11 processing meat products or poultry products for the owner of
27.12 the animal or of the meat products and poultry products, if all
27.13 meat products or poultry products derived from the custom
27.14 operation are returned to the owner of the animal or of the meat
27.15 products or poultry products. No person may sell, offer for
27.16 sale, or possess with intent to sell meat derived from custom
27.17 processing.
27.18 Sec. 36. Minnesota Statutes 1998, section 31A.02,
27.19 subdivision 6, is amended to read:
27.20 Subd. 6. [MEAT BROKER.] "Meat broker" means a person in
27.21 the business of buying or selling carcasses, parts of carcasses,
27.22 meat, or meat food products, poultry, or poultry products of
27.23 animals on commission, or otherwise negotiating purchases or
27.24 sales of those articles other than for the person's own account
27.25 or as an employee of another person, firm, or corporation.
27.26 Sec. 37. Minnesota Statutes 1998, section 31A.02,
27.27 subdivision 10, is amended to read:
27.28 Subd. 10. [MEAT FOOD PRODUCT; POULTRY FOOD PRODUCT.] "Meat
27.29 food product" or "poultry food product" means a product usable
27.30 as human food and made wholly or in part from meat or poultry or
27.31 a portion of the carcass of cattle, sheep, swine, poultry,
27.32 farmed cervidae, as defined in section 17.451, subdivision 2,
27.33 llamas, as defined in section 17.455, subdivision 2, ratitae, as
27.34 defined in section 17.453, subdivision 3, or goats. "Meat food
27.35 product" or "poultry food product" does not include products
27.36 which contain meat, poultry, or other portions of the carcasses
28.1 of cattle, sheep, swine, farmed cervidae, llamas, ratitae, or
28.2 goats only in a relatively small proportion or that historically
28.3 have not been considered by consumers as products of the meat
28.4 food industry, and which are exempted from definition as a meat
28.5 food product or poultry food product by the commissioner under
28.6 the conditions the commissioner prescribes to assure that the
28.7 meat or other portions of carcasses contained in the products
28.8 are not adulterated and that the products are not represented as
28.9 meat food products or poultry food products.
28.10 "Meat food product," as applied to products of equines, has
28.11 a meaning comparable to that for cattle, sheep, swine, farmed
28.12 cervidae, llamas, ratitae, and goats.
28.13 Sec. 38. Minnesota Statutes 1998, section 31A.02,
28.14 subdivision 13, is amended to read:
28.15 Subd. 13. [ADULTERATED.] "Adulterated" means a carcass,
28.16 part of a carcass, meat, poultry, poultry food product, or meat
28.17 food product under one or more of the following circumstances:
28.18 (a) if it bears or contains a poisonous or harmful
28.19 substance which may render it injurious to health; but if the
28.20 substance is not an added substance, the article is not
28.21 adulterated if the quantity of the substance in or on the
28.22 article does not ordinarily make it injurious to health;
28.23 (b) if it bears or contains, by administration of a
28.24 substance to the live animal or otherwise, an added poisonous or
28.25 harmful substance, other than (1) a pesticide chemical in or on
28.26 a raw agricultural commodity; (2) a food additive; or (3) a
28.27 color additive, which may, in the judgment of the commissioner,
28.28 make the article unfit for human food;
28.29 (c) if it is, in whole or in part, a raw agricultural
28.30 commodity that bears or contains a pesticide chemical which is
28.31 unsafe within the meaning of section 408 of the Federal Food,
28.32 Drug, and Cosmetic Act;
28.33 (d) if it bears or contains a food additive which is unsafe
28.34 within the meaning of section 409 of the Federal Food, Drug, and
28.35 Cosmetic Act;
28.36 (e) if it bears or contains a color additive which is
29.1 unsafe within the meaning of section 706 of the Federal Food,
29.2 Drug, and Cosmetic Act;
29.3 (f) if it contains a filthy, putrid, or decomposed
29.4 substance or is for any other reason unfit for human food;
29.5 (g) if it has been prepared, packed, or held under
29.6 unsanitary conditions so that it may be contaminated with filth
29.7 or harmful to health;
29.8 (h) if it is wholly or partly the product of an animal
29.9 which has died otherwise than by slaughter;
29.10 (i) if its container is wholly or partly composed of a
29.11 poisonous or harmful substance which may make the contents
29.12 harmful to health;
29.13 (j) if it has been intentionally subjected to radiation,
29.14 unless the use of the radiation conformed with a regulation or
29.15 exemption in effect under section 409 of the Federal Food, Drug,
29.16 and Cosmetic Act;
29.17 (k) if a valuable constituent has been wholly or partly
29.18 omitted or removed from it; if a substance has been wholly or
29.19 partly substituted for it; if damage or inferiority has been
29.20 concealed; or if a substance has been added to it or mixed or
29.21 packed with it so as to increase its bulk or weight, reduce its
29.22 quality or strength, or make it appear better or of greater
29.23 value than it is; or
29.24 (l) if it is margarine containing animal fat and any of the
29.25 raw material used in it wholly or partly consisted of a filthy,
29.26 putrid, or decomposed substance.
29.27 Sec. 39. Minnesota Statutes 1998, section 31A.02,
29.28 subdivision 14, is amended to read:
29.29 Subd. 14. [MISBRANDED.] "Misbranded" means a carcass, part
29.30 of a carcass, meat, poultry, poultry food product, or meat food
29.31 product under one or more of the following circumstances:
29.32 (a) if its labeling is false or misleading;
29.33 (b) if it is offered for sale under the name of another
29.34 food;
29.35 (c) if it is an imitation of another food, unless its label
29.36 bears, in type of uniform size and prominence, the word
30.1 "imitation" followed immediately by the name of the food
30.2 imitated;
30.3 (d) if its container is made, formed, or filled so as to be
30.4 misleading;
30.5 (e) if its package or other container does not have a label
30.6 showing (1) the name and place of business of the manufacturer,
30.7 packer, or distributor; and (2) an accurate statement of the
30.8 quantity of the contents in terms of weight, measure, or
30.9 numerical count subject to reasonable variations permitted and
30.10 exemptions for small packages established in rules of the
30.11 commissioner;
30.12 (f) if a word, statement, or other information required by
30.13 or under authority of this chapter to appear on the label or
30.14 other labeling is not prominently and conspicuously placed on
30.15 the label or labeling in terms that make it likely to be read
30.16 and understood by the ordinary individual under customary
30.17 conditions of purchase and use;
30.18 (g) if it is represented as a food for which a definition
30.19 and standard of identity or composition has been prescribed by
30.20 rules of the commissioner under section 31A.07, unless (1) it
30.21 conforms to the definition and standard, and (2) its label bears
30.22 the name of the food specified in the definition and standard
30.23 and, if required by the rules, the common names of optional
30.24 ingredients, other than spices, flavoring, and coloring, present
30.25 in the food;
30.26 (h) if it is represented as a food for which a standard of
30.27 fill of container has been prescribed by rules of the
30.28 commissioner under section 31A.07, and it falls below the
30.29 applicable standard of fill of container, unless its label
30.30 bears, in the manner and form the rules specify, a statement
30.31 that it falls below the standard;
30.32 (i) if it is not subject to paragraph (g), unless its label
30.33 bears (1) the usual name of the food, if there is one, and (2)
30.34 in case it is fabricated from two or more ingredients, the
30.35 common or usual name of each ingredient; except that spices,
30.36 flavorings, and colorings may, when authorized by the
31.1 commissioner, be designated as spices, flavorings, and colorings
31.2 without naming each. To the extent that compliance with clause
31.3 (2) is impracticable, or results in deception or unfair
31.4 competition, the commissioner shall establish exemptions by
31.5 rule;
31.6 (j) if it purports to be or is represented for special
31.7 dietary uses, unless its label bears the information concerning
31.8 its vitamin, mineral, and other dietary properties that the
31.9 commissioner, after consultation with the Secretary of
31.10 Agriculture of the United States, determines by rule to be
31.11 necessary to inform purchasers of its value for special dietary
31.12 uses;
31.13 (k) if it bears or contains any artificial flavoring,
31.14 artificial coloring, or chemical preservative, unless it bears
31.15 labeling stating that fact;
31.16 (l) if it fails to bear, directly or on its container, as
31.17 the commissioner by rule prescribes, the inspection legend and
31.18 other information the commissioner may require by rule to assure
31.19 that it will not have false or misleading labeling and that the
31.20 public will be told how to keep the article wholesome.
31.21 Sec. 40. Minnesota Statutes 1998, section 31A.03, is
31.22 amended to read:
31.23 31A.03 [INSPECTION OF LIVE ANIMALS; DISPOSITION OF
31.24 DEFECTIVE ANIMALS.]
31.25 To prevent the use in intrastate commerce of adulterated
31.26 meat and, meat food products, poultry, and poultry food
31.27 products, the commissioner shall appoint inspectors and have
31.28 them examine and inspect all animals before the animals enter a
31.29 slaughtering, packing, meat canning, rendering, or similar
31.30 establishment in this state in which slaughtering of animals and
31.31 preparation of meat and, meat food products, poultry, and
31.32 poultry food products are conducted solely for intrastate
31.33 commerce. Animals found on inspection to show symptoms of
31.34 disease must be set apart and slaughtered separately from other
31.35 animals. The carcasses of those animals must be carefully
31.36 examined and inspected under rules of the commissioner.
32.1 Sec. 41. Minnesota Statutes 1998, section 31A.05, is
32.2 amended to read:
32.3 31A.05 [APPLICATION OF INSPECTION PROVISIONS.]
32.4 Sections 31A.03 and 31A.04 apply to carcasses or parts of
32.5 animals, poultry, or poultry food products, and meat or meat
32.6 products derived from them that are usable as human food, when
32.7 these items are brought into a slaughtering, meat canning,
32.8 salting, packing, rendering, or similar establishment, where
32.9 inspection under sections 31A.01 to 31A.16 is done. Examination
32.10 and inspection must be made before the carcasses or animal parts
32.11 may enter into a department where they are to be treated and
32.12 prepared for meat food products or poultry food products.
32.13 Sections 31A.03 and 31A.04 also apply to products which,
32.14 after having been issued from a slaughtering, meat canning,
32.15 salting, packing, rendering, or similar establishment, must be
32.16 returned to it or to a similar establishment where inspection is
32.17 done.
32.18 The commissioner may limit the entry of carcasses, parts of
32.19 carcasses, poultry, poultry food products, meat and, meat food
32.20 products, and other materials into an establishment where
32.21 inspection under sections 31A.01 to 31A.16 is done to conditions
32.22 the commissioner prescribes to assure that allowing the entry of
32.23 articles into inspected establishments is consistent with the
32.24 purposes of this chapter.
32.25 Sec. 42. Minnesota Statutes 1998, section 31A.06, is
32.26 amended to read:
32.27 31A.06 [INSPECTORS' DUTIES.]
32.28 The commissioner shall appoint inspectors to examine and
32.29 inspect poultry food products and meat food products prepared in
32.30 a slaughtering, meat canning, salting, packing, rendering, or
32.31 similar establishment, where the articles are prepared solely
32.32 for intrastate commerce. For examination and inspection
32.33 purposes, the inspectors must be given access at all times,
32.34 whether the establishment is operated or not, to every part of
32.35 the establishment. The inspectors shall mark, stamp, tag, or
32.36 label as "Minnesota Inspected and Passed" all products found to
33.1 be unadulterated, and the inspectors shall label, mark, stamp,
33.2 or tag as "Minnesota Inspected and Condemned" all products found
33.3 to be adulterated. Condemned meat food products or poultry food
33.4 products must be destroyed for food purposes under section
33.5 31A.04. The commissioner may remove inspectors from an
33.6 establishment which fails to destroy condemned poultry food
33.7 products or meat food products.
33.8 Sec. 43. Minnesota Statutes 1998, section 31A.07,
33.9 subdivision 1, is amended to read:
33.10 Subdivision 1. [LABELING; PACKING.] When poultry, poultry
33.11 food products, meat, or a meat food product products prepared
33.12 for intrastate commerce which has have been inspected and marked
33.13 "Minnesota Inspected and Passed" is placed or packed in a can,
33.14 pot, tin, canvas, or other receptacle or covering in an
33.15 establishment where inspection is done under sections 31A.01 to
33.16 31A.31, the person, firm, or corporation preparing the product
33.17 shall have a label attached to the can, pot, tin, canvas, or
33.18 other receptacle or covering, under supervision of an
33.19 inspector. The label must state that the contents have been
33.20 "Minnesota Inspected and Passed" under sections 31A.01 to
33.21 31A.31. An inspection or examination of poultry, poultry food
33.22 products, meat, or meat food products deposited or enclosed in
33.23 cans, tins, pots, canvas, or other receptacles or coverings in
33.24 an establishment where inspection is done under this chapter is
33.25 not complete until the poultry, poultry food products, meat, or
33.26 meat food products have been sealed or enclosed in the can, tin,
33.27 pot, canvas, or other receptacle or covering under the
33.28 supervision of an inspector.
33.29 Sec. 44. Minnesota Statutes 1998, section 31A.07,
33.30 subdivision 2, is amended to read:
33.31 Subd. 2. [LABELS; MARKS.] All carcasses, parts of
33.32 carcasses, poultry, poultry food products, meat, and meat food
33.33 products inspected at an establishment under this chapter and
33.34 found not to be adulterated, must when they leave the
33.35 establishment bear, directly or on their containers, legible
33.36 labels or official marks as required by the commissioner.
34.1 Sec. 45. Minnesota Statutes 1998, section 31A.08, is
34.2 amended to read:
34.3 31A.08 [RULES.]
34.4 The commissioner shall have experts in sanitation or other
34.5 competent inspectors inspect all slaughtering, meat canning,
34.6 salting, packing, rendering, or similar establishments in which
34.7 animals are slaughtered and their poultry, poultry food
34.8 products, meat, and meat food products are prepared solely for
34.9 intrastate commerce. The inspections must be conducted as
34.10 necessary for the commissioner to know the sanitary conditions
34.11 of the establishments, and to prescribe the rules of sanitation
34.12 under which the establishments must be maintained. If an
34.13 establishment has sanitary conditions that allow poultry,
34.14 poultry food products, meat, or meat food products to become
34.15 adulterated, the commissioner shall refuse to allow the poultry,
34.16 poultry food products, meat, or meat food products to be
34.17 labeled, marked, stamped, or tagged as "Minnesota Inspected and
34.18 Passed."
34.19 Sec. 46. Minnesota Statutes 1998, section 31A.10, is
34.20 amended to read:
34.21 31A.10 [PROHIBITIONS.]
34.22 No person may, with respect to an animal, carcass, part of
34.23 a carcass, poultry, poultry food product, meat, or meat food
34.24 product:
34.25 (1) slaughter an animal or prepare an article that is
34.26 usable as human food, at any establishment preparing articles
34.27 solely for intrastate commerce, except in compliance with this
34.28 chapter;
34.29 (2) sell, transport, offer for sale or transportation, or
34.30 receive for transportation, in intrastate commerce (i) articles
34.31 which are usable as human food and are adulterated or misbranded
34.32 at the time of sale, transportation, offer for sale or
34.33 transportation, or receipt for transportation; or (ii) articles
34.34 required to be inspected under sections 31A.01 to 31A.16 that
34.35 have not been inspected and passed;
34.36 (3) do something to an article that is usable as human food
35.1 while the article is being transported in intrastate commerce or
35.2 held for sale after transportation, which is intended to cause
35.3 or has the effect of causing the article to be adulterated or
35.4 misbranded; or
35.5 (4) sell, offer for sale, or possess with intent to sell
35.6 meat derived from custom processing.
35.7 Sec. 47. Minnesota Statutes 1998, section 31A.13, is
35.8 amended to read:
35.9 31A.13 [INSPECTORS.]
35.10 The commissioner shall appoint inspectors to inspect
35.11 animals, whole or parts of carcasses, poultry, poultry food
35.12 products, meat, and meat food products the inspection of which
35.13 is provided for by law, and the sanitary conditions of all
35.14 establishments in which the poultry, poultry food products,
35.15 meat, and meat food products are prepared. Inspectors shall
35.16 refuse to stamp, mark, tag, or label a whole or part of a
35.17 carcass or a meat food product derived from it, prepared in an
35.18 establishment covered by sections 31A.01 to 31A.12, until it has
35.19 actually been inspected and found to be not adulterated.
35.20 Inspectors shall perform other duties required by this chapter
35.21 or by rules adopted by the commissioner that are necessary for
35.22 the efficient execution of this chapter. Inspections under this
35.23 chapter must conform to the rules adopted by the commissioner
35.24 consistent with this chapter.
35.25 Sec. 48. Minnesota Statutes 1999 Supplement, section
35.26 31A.15, subdivision 1, is amended to read:
35.27 Subdivision 1. [INSPECTION.] The provisions of sections
35.28 31A.01 to 31A.16 requiring inspection of the slaughter of
35.29 animals and the preparation of the carcasses, parts of
35.30 carcasses, meat, poultry, poultry food products, and meat food
35.31 products at establishments conducting slaughter and preparation
35.32 do not apply:
35.33 (1) to the processing by a person of the person's own
35.34 animals and the owner's preparation and transportation in
35.35 intrastate commerce of the carcasses, parts of carcasses, meat,
35.36 poultry, poultry food products, and meat food products of those
36.1 animals exclusively for use by the owner and members of the
36.2 owner's household, nonpaying guests, and employees; or
36.3 (2) to the custom processing by a person of cattle, sheep,
36.4 swine, poultry, or goats delivered by the owner for processing,
36.5 and the preparation or transportation in intrastate commerce of
36.6 the carcasses, parts of carcasses, meat, poultry, poultry food
36.7 products, and meat food products of animals, exclusively for use
36.8 in the household of the owner by the owner and members of the
36.9 owner's household, nonpaying guests, and employees. Meat from
36.10 custom processing of cattle, sheep, swine, poultry, or goats
36.11 must be identified and handled as required by the commissioner,
36.12 during all phases of processing, chilling, cooling, freezing,
36.13 preparation, storage, and transportation. The custom processor
36.14 may not engage in the business of buying or selling carcasses,
36.15 parts of carcasses, meat, poultry, poultry food products, or
36.16 meat food products of animals usable as human food unless the
36.17 carcasses, parts of carcasses, meat, poultry, poultry food
36.18 products, or meat food products have been inspected and passed
36.19 and are identified as inspected and passed by the Minnesota
36.20 department of agriculture or the United States Department of
36.21 Agriculture.
36.22 Sec. 49. Minnesota Statutes 1998, section 31A.16, is
36.23 amended to read:
36.24 31A.16 [STORING AND HANDLING CONDITIONS.]
36.25 The commissioner may adopt rules prescribing conditions
36.26 under which carcasses, parts of carcasses, poultry, poultry food
36.27 products, meat, and meat food products of animals usable as
36.28 human food must be stored or otherwise handled by a person in
36.29 the business of buying, selling, freezing, storing, or
36.30 transporting them, in or for intrastate commerce, if the
36.31 commissioner considers action necessary to assure that the
36.32 articles will not be adulterated or misbranded when delivered to
36.33 the consumer.
36.34 Sec. 50. Minnesota Statutes 1998, section 31A.17, is
36.35 amended to read:
36.36 31A.17 [ARTICLES NOT INTENDED AS HUMAN FOOD.]
37.1 Inspection must not be provided under sections 31A.01 to
37.2 31A.16 at an establishment for the slaughter of animals or the
37.3 preparation of carcasses or parts or products of animals which
37.4 are not intended for use as human food. Before they are offered
37.5 for sale or transportation in intrastate commerce, those
37.6 articles must be denatured or otherwise identified as prescribed
37.7 by rules of the commissioner to deter their use for human food,
37.8 unless they are naturally inedible by humans. No person may
37.9 buy, sell, transport, offer for sale or transportation, or
37.10 receive for transportation, in intrastate commerce, carcasses,
37.11 parts of carcasses, poultry, poultry food products, meat, or
37.12 meat food products of animals which are not intended for use as
37.13 human food unless they are denatured or otherwise identified as
37.14 required by the rules of the commissioner or are naturally
37.15 inedible by humans.
37.16 Sec. 51. Minnesota Statutes 1998, section 31B.02,
37.17 subdivision 4, is amended to read:
37.18 Subd. 4. [LIVESTOCK.] "Livestock" means live or dead
37.19 cattle, sheep, swine, horses, mules, farmed cervidae, as defined
37.20 in section 17.451, subdivision 2, llamas, as defined in section
37.21 17.455, subdivision 2, ratitae, as defined in section 17.453,
37.22 subdivision 3, bison (buffalo), or goats.
37.23 Sec. 52. Minnesota Statutes 1999 Supplement, section
37.24 31B.07, subdivision 3, is amended to read:
37.25 Subd. 3. [EXPIRATION.] The reporting provisions of this
37.26 section expire 30 days after a department or agency of the
37.27 federal government has a price reporting requirement at least as
37.28 comprehensive as this section, as determined by the commissioner
37.29 and results in Minnesota-specific information being available to
37.30 the commissioner and to Minnesota producers.
37.31 Sec. 53. Minnesota Statutes 1998, section 41B.03,
37.32 subdivision 1, is amended to read:
37.33 Subdivision 1. [ELIGIBILITY GENERALLY.] To be eligible for
37.34 a program in sections 41B.01 to 41B.23:
37.35 (1) a borrower must be a resident of Minnesota or a
37.36 domestic family farm corporation, as defined in section 500.24,
38.1 subdivision 2; and
38.2 (2) the borrower or one of the borrowers must be the
38.3 principal operator of the farm or, for a prospective homestead
38.4 redemption borrower, must have at one time been the principal
38.5 operator of a farm; and
38.6 (3) the borrower must not receive assistance under sections
38.7 41B.01 to 41B.23 exceeding an aggregate of $100,000 in loans
38.8 during the borrower's lifetime.
38.9 Sec. 54. Minnesota Statutes 1998, section 41B.03,
38.10 subdivision 2, is amended to read:
38.11 Subd. 2. [ELIGIBILITY FOR RESTRUCTURED LOAN.] In addition
38.12 to the eligibility requirements of subdivision 1, a prospective
38.13 borrower for a restructured loan must:
38.14 (1) have received at least 50 percent of average annual
38.15 gross income from farming for the past three years or, for
38.16 homesteaded property, received at least 40 percent of average
38.17 gross income from farming in the past three years, and farming
38.18 must be the principal occupation of the borrower;
38.19 (2) have a debt-to-asset ratio equal to or greater than 50
38.20 percent and in determining this ratio, the assets must be valued
38.21 at their current market value;
38.22 (3) have projected annual expenses, including operating
38.23 expenses, family living, and interest expenses after the
38.24 restructuring, that do not exceed 95 percent of the borrower's
38.25 projected annual income considering prior production history and
38.26 projected prices for farm production, except that the authority
38.27 may reduce the 95 percent requirement if it finds that other
38.28 significant factors in the loan application support the making
38.29 of the loan; and
38.30 (4) demonstrate substantial difficulty in meeting projected
38.31 annual expenses without restructuring the loan; and
38.32 (5) must have a total net worth, including assets and
38.33 liabilities of the borrower's spouse and dependents, of less
38.34 than $400,000 in 1999 and an amount in subsequent years which is
38.35 adjusted for inflation by multiplying $400,000 by the cumulative
38.36 inflation rate as determined by the United States All-Items
39.1 Consumer Price Index.
39.2 Sec. 55. Minnesota Statutes 1998, section 41B.039,
39.3 subdivision 2, is amended to read:
39.4 Subd. 2. [STATE PARTICIPATION.] The state may participate
39.5 in a new real estate loan with an eligible lender to a beginning
39.6 farmer to the extent of 45 percent of the principal amount of
39.7 the loan or $100,000 $125,000, whichever is less. The interest
39.8 rates and repayment terms of the authority's participation
39.9 interest may be different than the interest rates and repayment
39.10 terms of the lender's retained portion of the loan.
39.11 Sec. 56. Minnesota Statutes 1998, section 41B.04,
39.12 subdivision 8, is amended to read:
39.13 Subd. 8. [STATE'S PARTICIPATION.] With respect to loans
39.14 that are eligible for restructuring under sections 41B.01 to
39.15 41B.23 and upon acceptance by the authority, the authority shall
39.16 enter into a participation agreement or other financial
39.17 arrangement whereby it shall participate in a restructured loan
39.18 to the extent of 45 percent of the primary principal or
39.19 $100,000 $150,000, whichever is less. The authority's portion
39.20 of the loan must be protected during the authority's
39.21 participation by the first mortgage held by the eligible lender
39.22 to the extent of its participation in the loan.
39.23 Sec. 57. Minnesota Statutes 1998, section 41B.042,
39.24 subdivision 4, is amended to read:
39.25 Subd. 4. [PARTICIPATION LIMIT; INTEREST.] The authority
39.26 may participate in new seller-sponsored loans to the extent of
39.27 45 percent of the principal amount of the loan or
39.28 $100,000 $125,000, whichever is less. The interest rates and
39.29 repayment terms of the authority's participation interest may be
39.30 different than the interest rates and repayment terms of the
39.31 seller's retained portion of the loan.
39.32 Sec. 58. Minnesota Statutes 1998, section 41B.043,
39.33 subdivision 2, is amended to read:
39.34 Subd. 2. [SPECIFICATIONS.] No direct loan may exceed
39.35 $35,000 or $100,000 $125,000 for a loan participation or be made
39.36 to refinance an existing debt. Each direct loan and
40.1 participation must be secured by a mortgage on real property and
40.2 such other security as the authority may require.
40.3 Sec. 59. Minnesota Statutes 1998, section 41B.045,
40.4 subdivision 2, is amended to read:
40.5 Subd. 2. [LOAN PARTICIPATION.] The authority may
40.6 participate in a livestock expansion loan with an eligible
40.7 lender to a livestock farmer who meets the requirements of
40.8 section 41B.03, subdivision 1, clauses (1) and (2), and who are
40.9 actively engaged in a livestock operation. A prospective
40.10 borrower must have a total net worth, including assets and
40.11 liabilities of the borrower's spouse and dependents, of less
40.12 than $400,000 in 1999 and an amount in subsequent years which is
40.13 adjusted for inflation by multiplying $400,000 by the cumulative
40.14 inflation rate as determined by the United States All-Items
40.15 Consumer Price Index.
40.16 Participation is limited to 45 percent of the principal
40.17 amount of the loan or $250,000, whichever is less. The interest
40.18 rates and repayment terms of the authority's participation
40.19 interest may be different from the interest rates and repayment
40.20 terms of the lender's retained portion of the loan. Loans under
40.21 this program must not be included in the lifetime limitation
40.22 calculated under section 41B.03, subdivision 1.
40.23 Sec. 60. Minnesota Statutes 1998, section 223.16,
40.24 subdivision 5, is amended to read:
40.25 Subd. 5. [GRAIN BUYER.] "Grain buyer" means a person who
40.26 purchases grain from a producer for the purpose of reselling the
40.27 grain with the exception of a person who purchases seed grain
40.28 for crop production or who purchases grain as feed for the
40.29 person's own livestock.
40.30 Sec. 61. Minnesota Statutes 1998, section 223.17,
40.31 subdivision 5, is amended to read:
40.32 Subd. 5. [CASH SALES; MANNER OF PAYMENT.] For a cash sale
40.33 of a shipment of grain which is part of a multiple shipment
40.34 sale, the grain buyer shall tender payment to the seller in cash
40.35 or by check not later than ten days after the sale of that
40.36 shipment, except that when the entire sale is completed, payment
41.1 shall be tendered not later than the close of business on the
41.2 next day, or within 48 hours, whichever is later. For other
41.3 cash sales the grain buyer, before the close of business on the
41.4 next business day after the sale, shall tender payment to the
41.5 seller in cash or by check, or shall wire or mail funds to the
41.6 seller's account in the amount of at least 80 percent of the
41.7 value of the grain at the time of delivery. The grain buyer
41.8 shall complete final settlement as rapidly as possible through
41.9 ordinary diligence. Any transaction which is not a cash sale in
41.10 compliance with the provisions of this subdivision constitutes a
41.11 voluntary extension of credit which is not afforded protection
41.12 under the grain buyer's bond, and which must comply with
41.13 sections 223.175 and 223.177.
41.14 Sec. 62. Minnesota Statutes 1998, section 223.175, is
41.15 amended to read:
41.16 223.175 [WRITTEN VOLUNTARY EXTENSION OF CREDIT CONTRACTS;
41.17 FORM.]
41.18 A written confirmation required under section 223.177,
41.19 subdivision 2, and a written voluntary extension of credit
41.20 contract must include those items prescribed by the commissioner
41.21 by rule. A contract shall include a statement of the legal and
41.22 financial responsibilities of grain buyers and sellers
41.23 established in this chapter. A contract shall also include the
41.24 following statement in not less than ten point, all capital
41.25 type, framed in a box with space provided for the seller's
41.26 signature: "THIS CONTRACT CONSTITUTES A VOLUNTARY EXTENSION OF
41.27 CREDIT. THIS CONTRACT IS NOT COVERED BY ANY GRAIN BUYER'S
41.28 BOND." If a written contract is provided at the time the grain
41.29 is delivered to the grain buyer, the seller shall sign the
41.30 contract in the space provided beneath the statement. A
41.31 transaction that does not meet the provisions of a voluntary
41.32 extension of credit, including the issuance and signing of a
41.33 voluntary extension of credit contract, is a cash sale.
41.34 Sec. 63. Minnesota Statutes 1998, section 232.21, is
41.35 amended by adding a subdivision to read:
41.36 Subd. 14. [OPEN STORAGE.] "Open storage" means grain or
42.1 agricultural products received by a warehouse operator from a
42.2 depositor for which warehouse receipts have not been issued or a
42.3 purchase made and the records documented accordingly.
42.4 Sec. 64. Minnesota Statutes 1998, section 232.23,
42.5 subdivision 1, is amended to read:
42.6 Subdivision 1. [DISCRIMINATION PROHIBITED.] (a) Except as
42.7 provided in paragraph (b), a public grain warehouse operator
42.8 must receive for storage, so far as the capacity of the grain
42.9 warehouse will permit, all sound grain tendered in warehouseable
42.10 condition without discrimination against any person tendering
42.11 the grain.
42.12 (b) The requirements in paragraph (a) do not apply to
42.13 storage capacity owned by producers that is managed by the
42.14 public grain warehouse operator but is not under the same
42.15 ownership as the grain warehouse.
42.16 Sec. 65. Minnesota Statutes 1998, section 232.23,
42.17 subdivision 3, is amended to read:
42.18 Subd. 3. [GRAIN DELIVERED CONSIDERED SOLD STORED.] All
42.19 grain delivered to a public grain warehouse operator shall be
42.20 considered sold stored at the time of delivery, unless
42.21 arrangements have been made with the public grain warehouse
42.22 operator prior to or at the time of delivery to apply the grain
42.23 on contract, for shipment or consignment or for storage cash
42.24 sale. Grain may be held in open storage or placed on a
42.25 warehouse receipt. Warehouse receipts must be issued for all
42.26 grain held in open storage within six months of delivery to the
42.27 warehouse unless the depositor has signed a statement that the
42.28 depositor does not desire a warehouse receipt. The warehouse
42.29 operator's tariff applies for any grain that is retained in open
42.30 storage or under warehouse receipt.
42.31 Sec. 66. Minnesota Statutes 1998, section 232.23,
42.32 subdivision 6, is amended to read:
42.33 Subd. 6. [LIABILITY.] A public grain warehouse
42.34 operator issuing a grain warehouse receipt is liable to the
42.35 depositor for the delivery of the kind, grade, and net quantity
42.36 of grain called for by the grain warehouse receipt. or scale
43.1 ticket marked "store."
43.2 Sec. 67. Minnesota Statutes 1999 Supplement, section
43.3 500.24, subdivision 2, is amended to read:
43.4 Subd. 2. [DEFINITIONS.] The definitions in this
43.5 subdivision apply to this section.
43.6 (a) "Farming" means the production of (1) agricultural
43.7 products; (2) livestock or livestock products; (3) milk or milk
43.8 products; or (4) fruit or other horticultural products. It does
43.9 not include the processing, refining, or packaging of said
43.10 products, nor the provision of spraying or harvesting services
43.11 by a processor or distributor of farm products. It does not
43.12 include the production of timber or forest products, the
43.13 production of poultry or poultry products, or the feeding and
43.14 caring for livestock that are delivered to a corporation for
43.15 slaughter or processing for up to 20 days before slaughter or
43.16 processing.
43.17 (b) "Family farm" means an unincorporated farming unit
43.18 owned by one or more persons residing on the farm or actively
43.19 engaging in farming.
43.20 (c) "Family farm corporation" means a corporation founded
43.21 for the purpose of farming and the ownership of agricultural
43.22 land in which the majority of the voting stock is held by and
43.23 the majority of the stockholders are persons or, the spouses of
43.24 persons, or current beneficiaries of one or more family farm
43.25 trusts in which the trustee holds stock in a family farm
43.26 corporation, related to each other within the third degree of
43.27 kindred according to the rules of the civil law, and at least
43.28 one of said the related persons is residing on or actively
43.29 operating the farm, and none of whose stockholders are
43.30 corporations; provided that a family farm corporation shall not
43.31 cease to qualify as such hereunder by reason of any devise or
43.32 bequest:
43.33 (1) transfer of shares of voting stock to a person or the
43.34 spouse of a person related within the third degree of kindred
43.35 according to the rules of civil law to the person making the
43.36 transfer, or to a family farm trust of which the shareholder,
44.1 spouse, or related person is a current beneficiary; or
44.2 (2) distribution from a family farm trust of shares of
44.3 stock to a beneficiary related within the third degree of
44.4 kindred according to the rules of civil law to a majority of the
44.5 current beneficiaries of the trust, or to a family farm trust of
44.6 which the shareholder, spouse, or related person is a current
44.7 beneficiary.
44.8 For the purposes of this section, a transfer may be made
44.9 with or without consideration, either directly or indirectly,
44.10 during life or at death, whether or not in trust, of the shares
44.11 in the family farm corporation, and stock owned by a family farm
44.12 trust are considered to be owned in equal shares by the current
44.13 beneficiaries.
44.14 (d) "Family farm trust" means:
44.15 (1) a trust in which:
44.16 (i) a majority of the current beneficiaries are persons or
44.17 spouses of persons who are related to each other within the
44.18 third degree of kindred according to the rules of civil law;
44.19 (ii) all of the current beneficiaries are natural persons
44.20 or nonprofit corporations or trusts described in Internal
44.21 Revenue Code, section 170(c), as amended, and the regulations
44.22 under that section; and
44.23 (iii) one of the family member current beneficiaries is
44.24 residing on or actively operating the farm; or
44.25 (2) a charitable remainder trust as defined in Internal
44.26 Revenue Code, section 664, as amended, and the regulations under
44.27 that section, and a charitable lead trust as set forth in
44.28 Internal Revenue Code, section 170(f), and the regulations under
44.29 that section, if the lead period does not exceed ten years and
44.30 the majority of remainder beneficiaries are related to the
44.31 grantor within the third degree of kindred according to the
44.32 rules of civil law.
44.33 For the purposes of this section, if a distributee trust
44.34 becomes entitled to, or at the discretion of any person may
44.35 receive, a distribution from income or principal of a family
44.36 farm trust, then the distributee trust must independently
45.1 qualify as a family farm trust.
45.2 (e) "Authorized farm corporation" means a corporation
45.3 meeting the following standards:
45.4 (1) it has no more than five shareholders, provided that
45.5 for the purposes of this section, a husband and wife are
45.6 considered one shareholder;
45.7 (2) all its shareholders, other than any estate, are
45.8 natural persons;
45.9 (3) it does not have more than one class of shares;
45.10 (4) its revenue from rent, royalties, dividends, interest,
45.11 and annuities does not exceed 20 percent of its gross receipts;
45.12 (5) shareholders holding 51 percent or more of the interest
45.13 in the corporation reside on the farm or are actively engaging
45.14 in farming;
45.15 (6) it does not, directly or indirectly, own or otherwise
45.16 have an interest in any title to more than 1,500 acres of
45.17 agricultural land; and
45.18 (7) none of its shareholders are shareholders in other
45.19 authorized farm corporations that directly or indirectly in
45.20 combination with the corporation own more than 1,500 acres of
45.21 agricultural land.
45.22 (e) (f) "Authorized livestock farm corporation" means a
45.23 corporation formed for the production of livestock and meeting
45.24 the following standards:
45.25 (1) it is engaged in the production of livestock other than
45.26 dairy cattle;
45.27 (2) all its shareholders, other than any estate, are
45.28 natural persons or family farm corporations;
45.29 (3) it does not have more than one class of shares;
45.30 (4) its revenue from rent, royalties, dividends, interest,
45.31 and annuities does not exceed 20 percent of its gross receipts;
45.32 (5) shareholders holding 75 percent or more of the control,
45.33 financial, and capital investment in the corporation are farmers
45.34 residing in Minnesota and at least 51 percent of the required
45.35 percentage of farmers are actively engaged in livestock
45.36 production;
46.1 (6) it does not, directly or indirectly, own or otherwise
46.2 have an interest in any title to more than 1,500 acres of
46.3 agricultural land; and
46.4 (7) none of its shareholders are shareholders in other
46.5 authorized farm corporations that directly or indirectly in
46.6 combination with the corporation own more than 1,500 acres of
46.7 agricultural land.
46.8 (f) (g) "Agricultural land" means real estate used for
46.9 farming or capable of being used for farming in this state.
46.10 (g) (h) "Pension or investment fund" means a pension or
46.11 employee welfare benefit fund, however organized, a mutual fund,
46.12 a life insurance company separate account, a common trust of a
46.13 bank or other trustee established for the investment and
46.14 reinvestment of money contributed to it, a real estate
46.15 investment trust, or an investment company as defined in United
46.16 States Code, title 15, section 80a-3.
46.17 (h) (i) "Farm homestead" means a house including adjoining
46.18 buildings that has been used as part of a farming operation or
46.19 is part of the agricultural land used for a farming operation.
46.20 (i) (j) "Family farm partnership" means a limited
46.21 partnership formed for the purpose of farming and the ownership
46.22 of agricultural land in which the majority of the interests in
46.23 the partnership is held by and the majority of the partners are
46.24 persons or, the spouses of persons, or current beneficiaries of
46.25 one or more family farm trusts in which the trustee holds an
46.26 interest in a family farm partnership related to each other
46.27 within the third degree of kindred according to the rules of the
46.28 civil law, at least one of the related persons is residing on or
46.29 the farm, actively operating the farm, or the agricultural land
46.30 was owned by one or more of the related persons for a period of
46.31 five years before its transfer to the limited partnership, and
46.32 none of the partners are corporations. A family farm
46.33 partnership does not cease to qualify as a family farm
46.34 partnership because of a devise or bequest:
46.35 (1) transfer of a partnership interest in the
46.36 partnership to a person or spouse of a person related within the
47.1 third degree of kindred according to the rules of civil law to
47.2 the person making the transfer or to a family farm trust of
47.3 which the partner, spouse, or related person is a current
47.4 beneficiary; or
47.5 (2) distribution from a family farm trust of a partnership
47.6 interest to a beneficiary related within the third degree of
47.7 kindred according to the rules of civil law to a majority of the
47.8 current beneficiaries of the trust, or to a family farm trust of
47.9 which the partner, spouse, or related person is a current
47.10 beneficiary.
47.11 For the purposes of this section, a transfer may be made
47.12 with or without consideration, either directly or indirectly,
47.13 during life or at death, whether or not in trust, of a
47.14 partnership interest in the family farm partnership, and
47.15 interest owned by a family farm trust is considered to be owned
47.16 in equal shares by the current beneficiaries.
47.17 (j) (k) "Authorized farm partnership" means a limited
47.18 partnership meeting the following standards:
47.19 (1) it has been issued a certificate from the secretary of
47.20 state or is registered with the county recorder and farming and
47.21 ownership of agricultural land is stated as a purpose or
47.22 character of the business;
47.23 (2) it has no more than five partners;
47.24 (3) all its partners, other than any estate, are natural
47.25 persons;
47.26 (4) its revenue from rent, royalties, dividends, interest,
47.27 and annuities do does not exceed 20 percent of its gross
47.28 receipts;
47.29 (5) its general partners hold at least 51 percent of the
47.30 interest in the land assets of the partnership and reside on the
47.31 farm or are actively engaging in farming not more than 1,500
47.32 acres as a general partner in an authorized limited partnership;
47.33 (6) its limited partners do not participate in the business
47.34 of the limited partnership including operating, managing, or
47.35 directing management of farming operations;
47.36 (7) it does not, directly or indirectly, own or otherwise
48.1 have an interest in any title to more than 1,500 acres of
48.2 agricultural land; and
48.3 (8) none of its limited partners are limited partners in
48.4 other authorized farm partnerships that directly or indirectly
48.5 in combination with the partnership own more than 1,500 acres of
48.6 agricultural land.
48.7 (l) "Family farm limited liability company" means a limited
48.8 liability company founded for the purpose of farming and the
48.9 ownership of agricultural land in which the majority of the
48.10 membership interests are held by and the majority of the members
48.11 are persons or the spouses of persons, or current beneficiaries
48.12 of one or more family farm trusts in which the trustee holds
48.13 stock in a family farm limited liability company related to each
48.14 other within the third degree of kindred according to the rules
48.15 of the civil law, at least one of the related persons is
48.16 actively operating the farm, and none of the members are
48.17 corporations or limited liability companies. A family farm
48.18 limited liability company does not cease to qualify as a family
48.19 farm limited liability company because of:
48.20 (1) a transfer of a membership interest to a person or
48.21 spouse of a person related within the third degree of kindred
48.22 according to the rules of civil law to the person making the
48.23 transfer or to a family farm trust of which the member, spouse,
48.24 or related person is a current beneficiary; or
48.25 (2) distribution from a family farm trust of a membership
48.26 interest to a beneficiary related within the third degree of
48.27 kindred according to the rules of civil law to a majority of the
48.28 current beneficiaries of the trust, or to a family farm trust of
48.29 which the member, spouse, or related person is a current
48.30 beneficiary.
48.31 For the purposes of this section, a transfer may be made
48.32 with or without consideration, either directly or indirectly,
48.33 during life or at death, whether or not in trust, of a
48.34 membership interest in the family farm limited liability
48.35 company, and interest owned by a family farm trust is considered
48.36 to be owned in equal shares by the current beneficiaries.
49.1 Except for a state or federally chartered financial institution
49.2 acquiring an encumbrance for the purpose of security or an
49.3 interest under paragraph (x), a member of a family farm limited
49.4 liability company may not transfer a membership interest,
49.5 including a financial interest, to a person who is not otherwise
49.6 eligible to be a member under this paragraph.
49.7 (m) "Authorized farm limited liability company" means a
49.8 limited liability company meeting the following standards:
49.9 (1) it has no more than five members;
49.10 (2) all its members, other than any estate, are natural
49.11 persons;
49.12 (3) it does not have more than one class of membership
49.13 interests;
49.14 (4) its revenue from rent, royalties, dividends, interest,
49.15 and annuities does not exceed 20 percent of its gross receipts;
49.16 (5) members holding 51 percent or more of both the
49.17 governance rights and financial rights in the limited liability
49.18 company reside on the farm or are actively engaged in farming;
49.19 (6) it does not, directly or indirectly, own or otherwise
49.20 have an interest in any title to more than 1,500 acres of
49.21 agricultural land; and
49.22 (7) none of its members are members in other authorized
49.23 farm limited liability companies that directly or indirectly in
49.24 combination with the authorized farm limited liability company
49.25 own more than 1,500 acres of agricultural land.
49.26 Except for a state or federally chartered financial
49.27 institution acquiring an encumbrance for the purpose of security
49.28 or an interest under paragraph (x), a member of an authorized
49.29 farm limited liability company may not transfer a membership
49.30 interest, including a financial interest, to a person who is not
49.31 otherwise eligible to be a member under this paragraph.
49.32 (k) (n) "Farmer" means a natural person who regularly
49.33 participates in physical labor or operations management in the
49.34 person's farming operation and files "Schedule F" as part of the
49.35 person's annual Form 1040 filing with the United States Internal
49.36 Revenue Service.
50.1 (l) (o) "Actively engaged in livestock production" means
50.2 performing day-to-day physical labor or day-to-day operations
50.3 management that significantly contributes to livestock
50.4 production and the functioning of a livestock operation.
50.5 (m) (p) "Research or experimental farm" means a
50.6 corporation, limited partnership, or pension or, investment
50.7 fund, or limited liability company that owns or operates
50.8 agricultural land for research or experimental purposes,
50.9 provided that any commercial sales from the operation are
50.10 incidental to the research or experimental objectives of the
50.11 corporation. A corporation, limited partnership, limited
50.12 liability company, or pension or investment fund seeking initial
50.13 approval by the commissioner to operate agricultural land for
50.14 research or experimental purposes must first submit to the
50.15 commissioner a prospectus or proposal of the intended method of
50.16 operation containing information required by the commissioner
50.17 including a copy of any operational contract with individual
50.18 participants.
50.19 (n) (q) "Breeding stock farm" means a corporation or,
50.20 limited partnership, or limited liability company, that owns or
50.21 operates agricultural land for the purpose of raising breeding
50.22 stock, including embryos, for resale to farmers or for the
50.23 purpose of growing seed, wild rice, nursery plants, or sod. An
50.24 entity that is organized to raise livestock other than dairy
50.25 cattle under this paragraph that does not qualify as an
50.26 authorized farm corporation must:
50.27 (1) sell all castrated animals to be fed out or finished to
50.28 farming operations that are neither directly nor indirectly
50.29 owned by the business entity operating the breeding stock
50.30 operation; and
50.31 (2) report its total production and sales annually to the
50.32 commissioner.
50.33 (o) (r) "Aquatic farm" means a corporation or, limited
50.34 partnership, or limited liability company, that owns or leases
50.35 agricultural land as a necessary part of an aquatic farm as
50.36 defined in section 17.47, subdivision 3.
51.1 (p) (s) "Religious farm" means a corporation formed
51.2 primarily for religious purposes whose sole income is derived
51.3 from agriculture.
51.4 (q) (t) "Utility corporation" means a corporation regulated
51.5 under Minnesota Statutes 1974, chapter 216B, that owns
51.6 agricultural land for purposes described in that chapter, or an
51.7 electric generation or transmission cooperative that owns
51.8 agricultural land for use in its business if the land is not
51.9 used for farming except under lease to a family farm unit, a
51.10 family farm corporation, or a family farm trust, a family farm
51.11 partnership, or a family farm limited liability company.
51.12 (r) "Benevolent trust" means a pension fund or family trust
51.13 established by the owners of a family farm, authorized farm
51.14 corporation, authorized livestock farm corporation, or family
51.15 farm corporation that holds an interest in title to agricultural
51.16 land on which one or more of those owners or shareholders have
51.17 resided or have been actively engaged in farming as required by
51.18 paragraph (b), (c), (d), or (e).
51.19 (s) (u) "Development organization" means a corporation,
51.20 limited partnership, limited liability company, or pension or
51.21 investment fund that owns has an interest in agricultural land
51.22 for which the corporation, limited partnership, limited
51.23 liability company, or pension or investment fund has documented
51.24 plans to use and subsequently uses the land within six years
51.25 from the date of purchase for a specific nonfarming purpose, or
51.26 if the land is zoned nonagricultural, or if the land is located
51.27 within an incorporated area. A corporation, limited
51.28 partnership, limited liability company, or pension or investment
51.29 fund may hold agricultural land in the amount necessary for its
51.30 nonfarm business operation; provided, however, that pending the
51.31 development of agricultural land for nonfarm purposes, the land
51.32 may not be used for farming except under lease to a family farm
51.33 unit, a family farm corporation, a family farm trust, an
51.34 authorized farm corporation, an authorized livestock farm
51.35 corporation, a family farm partnership, or an authorized farm
51.36 partnership, a family farm limited liability company, or an
52.1 authorized farm limited liability company, or except when
52.2 controlled through ownership, options, leaseholds, or other
52.3 agreements by a corporation that has entered into an agreement
52.4 with the United States under the New Community Act of 1968
52.5 (Title IV of the Housing and Urban Development Act of 1968,
52.6 United States Code, title 42, sections 3901 to 3914) as amended,
52.7 or a subsidiary or assign of such a corporation.
52.8 (t) (v) "Exempt land" means agricultural land owned or
52.9 leased by a corporation as of May 20, 1973, agricultural land
52.10 owned or leased by a pension or investment fund as of May 12,
52.11 1981, or agricultural land owned or leased by a limited
52.12 partnership as of May 1, 1988, or agricultural land owned or
52.13 leased by a trust as of the effective date of this act,
52.14 including the normal expansion of that ownership at a rate not
52.15 to exceed 20 percent of the amount of land owned as of May 20,
52.16 1973, for a corporation; May 12, 1981, for a pension or
52.17 investment fund; or May 1, 1988, for a limited partnership, or
52.18 the effective date of this act for a trust, measured in acres,
52.19 in any five-year period, and including additional ownership
52.20 reasonably necessary to meet the requirements of pollution
52.21 control rules. A corporation, limited partnership, or pension
52.22 or investment fund that is eligible to own or lease agricultural
52.23 land under this section prior to May 1997, or a corporation that
52.24 is eligible to own or lease agricultural land as a benevolent
52.25 trust under this section prior to the effective date of this
52.26 act, may continue to own or lease agricultural land subject to
52.27 the same conditions and limitations as previously allowed.
52.28 (u) (w) "Gifted land" means agricultural land acquired as a
52.29 gift, either by grant or devise, by an educational, religious,
52.30 or charitable nonprofit corporation, limited
52.31 partnership, limited liability company, or pension or investment
52.32 fund if all land so acquired is disposed of within ten years
52.33 after acquiring the title.
52.34 (v) (x) "Repossessed land" means agricultural land acquired
52.35 by a corporation, limited partnership, limited liability
52.36 company, or pension or investment fund by process of law in the
53.1 collection of debts, or by any procedure for the enforcement of
53.2 a lien or claim on the land, whether created by mortgage or
53.3 otherwise if all land so acquired is disposed of within five
53.4 years after acquiring the title. The five-year limitation is a
53.5 covenant running with the title to the land against any grantee,
53.6 assignee, or successor of the pension or investment fund,
53.7 corporation, or limited partnership, or limited liability
53.8 company. The land so acquired must not be used for farming
53.9 during the five-year period, except under a lease to a family
53.10 farm unit, a family farm corporation, an authorized farm
53.11 corporation, an authorized livestock farm corporation, a family
53.12 farm partnership, or an authorized farm partnership, a family
53.13 farm limited liability company, or an authorized farm limited
53.14 liability company. Notwithstanding the five-year divestiture
53.15 requirement under this paragraph, a financial institution may
53.16 continue to own the agricultural land if the agricultural land
53.17 is leased to the immediately preceding former owner, but must
53.18 dispose of the agricultural land within ten years of acquiring
53.19 the title. Livestock acquired by a pension or investment fund,
53.20 corporation, or limited partnership, or limited liability
53.21 company in the collection of debts, or by a procedure for the
53.22 enforcement of lien or claim on the livestock whether created by
53.23 security agreement or otherwise after August 1, 1994, must be
53.24 sold or disposed of within one full production cycle for the
53.25 type of livestock acquired or 18 months after the livestock is
53.26 acquired, whichever is later earlier.
53.27 (w) (y) "Commissioner" means the commissioner of
53.28 agriculture.
53.29 (x) (z) "Demonstration "Nonprofit corporation" means a
53.30 nonprofit corporation organized under state nonprofit
53.31 corporation law and formed primarily for the purpose of
53.32 demonstrating historical farming practices or qualified for
53.33 tax-exempt status under federal tax law that uses the land for a
53.34 specific nonfarming purpose or leases the agricultural land to a
53.35 family farm unit, a family farm corporation, an authorized farm
53.36 corporation, an authorized livestock farm corporation, a family
54.1 farm limited liability company, an authorized farm limited
54.2 liability company, a family farm partnership, or an authorized
54.3 farm partnership.
54.4 (aa) "Current beneficiary" means a person who at any time
54.5 during a year is entitled to, or at the discretion of any person
54.6 may, receive a distribution from the income or principal of the
54.7 trust. It does not include a distributee trust, other than a
54.8 trust described in section 170(c) of the Internal Revenue Code,
54.9 as amended, but does include the current beneficiaries of the
54.10 distributee trust. It does not include a person in whose favor
54.11 a power of appointment could be exercised until the holder of
54.12 the power of appointment actually exercises the power of
54.13 appointment in that person's favor. It does not include a
54.14 person who is entitled to receive a distribution only after a
54.15 specified time or upon the occurrence of a specified event until
54.16 the time or occurrence of the event. For the purposes of this
54.17 section, a distributee trust is a current beneficiary of a
54.18 family farm trust.
54.19 (bb) "De minimis" means that any corporation, pension or
54.20 investment fund, limited liability company, or limited
54.21 partnership that directly or indirectly owns, acquires, or
54.22 otherwise obtains any interest in 40 acres or less of
54.23 agricultural land and annually receives less than $150 per acre
54.24 in gross revenue from rental or agricultural production.
54.25 Sec. 68. Minnesota Statutes 1999 Supplement, section
54.26 500.24, subdivision 3, is amended to read:
54.27 Subd. 3. [FARMING AND OWNERSHIP OF AGRICULTURAL LAND BY
54.28 CORPORATIONS RESTRICTED.] (a) No corporation, limited liability
54.29 company, pension or investment fund, trust, or limited
54.30 partnership shall engage in farming; nor shall any corporation,
54.31 limited liability company, pension or investment fund, trust, or
54.32 limited partnership, directly or indirectly, own, acquire, or
54.33 otherwise obtain any interest, in agricultural land other than a
54.34 bona fide encumbrance taken for purposes of security. This
54.35 subdivision does not apply to general partnerships. This
54.36 subdivision does not apply to any agricultural land,
55.1 corporation, limited partnership, trust, limited liability
55.2 company, or pension or investment fund that meet any of the
55.3 definitions in subdivision 2, paragraphs (b)
55.4 to (e) (f), (i), (j) to (m), (m) to (v) (p) to (x), and
55.5 (x) (z), and (bb), has a conservation plan prepared for the
55.6 agricultural land, and reports as required under subdivision 4.
55.7 (b) A corporation, pension or investment fund, trust,
55.8 limited liability company, or limited partnership that cannot
55.9 meet any of the definitions in subdivision 2, paragraphs (b) to
55.10 (f), (j) to (m), (p) to (x), (z), and (bb), may petition the
55.11 commissioner for an exemption from this subdivision. The
55.12 commissioner may issue an exemption if the entity meets the
55.13 following criteria:
55.14 (1) the exemption would not contradict the purpose of this
55.15 section; and
55.16 (2) the petitioning entity would not have a significant
55.17 impact upon the agriculture industry and the economy.
55.18 The commissioner shall review annually each entity that is
55.19 issued an exemption under this paragraph to ensure that the
55.20 entity continues to meet the criteria in clauses (1) and (2).
55.21 If an entity fails to meet the criteria, the commissioner shall
55.22 withdraw the exemption and the entity is subject to enforcement
55.23 proceedings under subdivision 5. The commissioner shall submit
55.24 a report with a list of each entity that is issued an exemption
55.25 under this paragraph to the chairs of the senate and house
55.26 agricultural policy committees by October 1 of each year.
55.27 Sec. 69. Minnesota Statutes 1998, section 500.24,
55.28 subdivision 3a, is amended to read:
55.29 Subd. 3a. [LEASE AGREEMENT; CONSERVATION PRACTICE
55.30 PROTECTION CLAUSE.] A corporation, pension or investment fund,
55.31 or limited partnership, or limited liability company other than
55.32 a family farm corporation, an authorized farm corporation, an
55.33 authorized livestock farm corporation, a family farm
55.34 partnership, or an authorized farm partnership those meeting any
55.35 of the definitions in subdivision 2, paragraphs (c) to (f) or
55.36 (j) to (m), when leasing farm land to a family farm unit, a
56.1 family farm corporation, an authorized farm corporation, an
56.2 authorized livestock farm corporation, a family farm
56.3 partnership, or an authorized farm partnership, a family farm
56.4 limited liability company, or an authorized farm limited
56.5 liability company, under provisions of subdivision 2, paragraph
56.6 (v) (x), must include within the lease agreement a provision
56.7 prohibiting intentional damage or destruction to a conservation
56.8 practice on the agricultural land.
56.9 Sec. 70. Minnesota Statutes 1998, section 500.24,
56.10 subdivision 3b, is amended to read:
56.11 Subd. 3b. [PROTECTION OF CONSERVATION PRACTICES.] A
56.12 corporation, pension or investment fund, or limited partnership,
56.13 or limited liability company other than a family farm
56.14 corporation, an authorized farm corporation, an authorized
56.15 livestock farm corporation, a family farm partnership, or
56.16 authorized farm partnership those meeting any of the definitions
56.17 in subdivision 2, paragraphs (c) to (f) or (j) to (m), which,
56.18 during the period of time it holds agricultural land under
56.19 subdivision 2, paragraph (v) (x), intentionally destroys a
56.20 conservation practice as defined in section 103F.401,
56.21 subdivision 3, to which the state has made a financial
56.22 contribution, must pay the commissioner, for deposit in the
56.23 general fund, an amount equal to the state's total contributions
56.24 to that conservation practice plus interest from the time of
56.25 investment in the conservation practice. Interest must be
56.26 calculated at an annual percentage rate of 12 percent.
56.27 Sec. 71. Minnesota Statutes 1998, section 500.24,
56.28 subdivision 4, is amended to read:
56.29 Subd. 4. [REPORTS.] (a) The chief executive officer of
56.30 every pension or investment fund, corporation, or limited
56.31 partnership, limited liability company, or entity that is
56.32 seeking to qualify for an exemption from the commissioner, and
56.33 the trustee of a family farm trust that holds any interest in
56.34 agricultural land or land used for the breeding, feeding,
56.35 pasturing, growing, or raising of livestock, dairy or poultry,
56.36 or products thereof, or land used for the production of
57.1 agricultural crops or fruit or other horticultural products,
57.2 other than a bona fide encumbrance taken for purposes of
57.3 security, or which is engaged in farming or proposing to
57.4 commence farming in this state after May 20, 1973, shall file
57.5 with the commissioner a report containing the following
57.6 information and documents:
57.7 (1) the name of the pension or investment fund,
57.8 corporation, or limited partnership, or limited liability
57.9 company and its place of incorporation, certification, or
57.10 registration;
57.11 (2) the address of the pension or investment plan
57.12 headquarters or of the registered office of the corporation in
57.13 this state, the name and address of its registered agent in this
57.14 state and, in the case of a foreign corporation or, limited
57.15 partnership, or limited liability company, the address of its
57.16 principal office in its place of incorporation, certification,
57.17 or registration;
57.18 (3) the acreage and location listed by quarter-quarter
57.19 section, township, and county of each lot or parcel of
57.20 agricultural land or land used for the keeping or feeding of
57.21 poultry in this state owned or leased by the pension or
57.22 investment fund, limited partnership, or corporation, or limited
57.23 liability company;
57.24 (4) the names and addresses of the officers,
57.25 administrators, directors, or trustees of the pension or
57.26 investment fund, or of the officers, shareholders owning more
57.27 than ten percent of the stock, including the percent of stock
57.28 owned by each such shareholder, and the members of the board of
57.29 directors of the corporation, and the members of the limited
57.30 liability company, and the general and limited partners and the
57.31 percentage of interest in the partnership by each partner;
57.32 (5) the farm products which the pension or investment fund,
57.33 limited partnership, or corporation, or limited liability
57.34 company produces or intends to produce on its agricultural land;
57.35 (6) with the first report, a copy of the title to the
57.36 property where the farming operations are or will occur
58.1 indicating the particular exception claimed under subdivision 3;
58.2 and
58.3 (7) with the first or second report, a copy of the
58.4 conservation plan proposed by the soil and water conservation
58.5 district, and with subsequent reports a statement of whether the
58.6 conservation plan was implemented.
58.7 The report of a corporation, trust, limited liability
58.8 company, or partnership seeking to qualify hereunder as a family
58.9 farm corporation, an authorized farm corporation, an authorized
58.10 livestock farm corporation, a family farm partnership, or an
58.11 authorized farm partnership, a family farm limited liability
58.12 company, an authorized farm limited liability company, or a
58.13 family farm trust or under an exemption from the commissioner
58.14 shall contain the following additional information: the number
58.15 of shares or the, partnership interests, or governance and
58.16 financial rights owned by persons or current beneficiaries of a
58.17 family farm trust residing on the farm or actively engaged in
58.18 farming, or their relatives within the third degree of kindred
58.19 according to the rules of the civil law or their spouses; the
58.20 name, address, and number of shares owned by each
58.21 shareholder or, partnership interests owned by each partner; or
58.22 governance and financial rights owned by each member, and a
58.23 statement as to percentage of gross receipts of the corporation
58.24 derived from rent, royalties, dividends, interest, and
58.25 annuities. No pension or investment fund, limited
58.26 partnership, or corporation, or limited liability company shall
58.27 commence farming in this state until the commissioner has
58.28 inspected the report and certified that its proposed operations
58.29 comply with the provisions of this section.
58.30 (b) Every pension or investment fund, limited
58.31 partnership, trust, or corporation, or limited liability company
58.32 as described in paragraph (a) shall, prior to April 15 of each
58.33 year, file with the commissioner a report containing the
58.34 information required in paragraph (a), based on its operations
58.35 in the preceding calendar year and its status at the end of the
58.36 year. A pension or investment fund, limited partnership, or
59.1 corporation, or limited liability company that does not file the
59.2 report by April 15 must pay a $500 civil penalty. The penalty
59.3 is a lien on the land being farmed under subdivision 3 until the
59.4 penalty is paid.
59.5 (c) The commissioner may, for good cause shown, issue a
59.6 written waiver or reduction of the civil penalty for failure to
59.7 make a timely filing of the annual report required by this
59.8 subdivision. The waiver or reduction is final and conclusive
59.9 with respect to the civil penalty, and may not be reopened or
59.10 modified by an officer, employee, or agent of the state, except
59.11 upon a showing of fraud or malfeasance or misrepresentation of a
59.12 material fact. The report required under paragraph (b) must be
59.13 completed prior to a reduction or waiver under this paragraph.
59.14 The commissioner may enter into an agreement under this
59.15 paragraph only once for each corporation or partnership.
59.16 (d) Failure to file a required report or the willful filing
59.17 of false information is a gross misdemeanor.
59.18 Sec. 72. Minnesota Statutes 1998, section 500.24,
59.19 subdivision 5, is amended to read:
59.20 Subd. 5. [ENFORCEMENT.] With reason to believe that a
59.21 corporation, limited partnership, limited liability company,
59.22 trust, or pension or investment fund is violating subdivision 3,
59.23 the attorney general shall commence an action in the district
59.24 court in which any agricultural lands relative to such violation
59.25 are situated, or if situated in two or more counties, in any
59.26 county in which a substantial part of the lands are situated.
59.27 The attorney general shall file for record with the county
59.28 recorder or the registrar of titles of each county in which any
59.29 portion of said lands are located a notice of the pendency of
59.30 the action as provided in section 557.02. If the court finds
59.31 that the lands in question are being held in violation of
59.32 subdivision 3, it shall enter an order so declaring. The
59.33 attorney general shall file for record any such order with the
59.34 county recorder or the registrar of titles of each county in
59.35 which any portion of said lands are located. Thereafter, the
59.36 pension or investment fund, limited partnership, or corporation
60.1 owning such land shall have a period of five years from the date
60.2 of such order to divest itself of such lands. The
60.3 aforementioned five-year limitation period shall be deemed a
60.4 covenant running with the title to the land against any pension
60.5 or investment fund, limited partnership, or corporate grantee or
60.6 assignee or the successor of such pension or investment fund,
60.7 limited partnership, or corporation. Any lands not so divested
60.8 within the time prescribed shall be sold at public sale in the
60.9 manner prescribed by law for the foreclosure of a mortgage by
60.10 action. In addition, any prospective or threatened violation
60.11 may be enjoined by an action brought by the attorney general in
60.12 the manner provided by law.
60.13 Sec. 73. Minnesota Statutes 1999 Supplement, section
60.14 500.245, subdivision 1, is amended to read:
60.15 Subdivision 1. [DISPOSAL OF LAND.] (a) A state or federal
60.16 agency, limited partnership, or a corporation, or limited
60.17 liability company may not lease or sell agricultural land or a
60.18 farm homestead before offering or making a good faith effort to
60.19 offer the land for sale or lease to the immediately preceding
60.20 former owner at a price no higher than the highest price offered
60.21 by a third party that is acceptable to the seller or lessor.
60.22 The offer must be made on the notice to offer form under
60.23 subdivision 2. The requirements of this subdivision do not
60.24 apply to a sale or lease by a corporation that is a family farm
60.25 corporation or an authorized farm corporation or to a sale or
60.26 lease by the commissioner of agriculture of property acquired by
60.27 the state under the family farm security program under chapter
60.28 41. This subdivision applies only to a sale or lease when the
60.29 seller or lessor acquired the property by enforcing a debt
60.30 against the agricultural land or farm homestead, including
60.31 foreclosure of a mortgage, accepting a deed in lieu of
60.32 foreclosure, terminating a contract for deed, or accepting a
60.33 deed in lieu of terminating a contract for deed. Selling or
60.34 leasing property to a third party at a price is prima facie
60.35 evidence that the price is acceptable to the seller or lessor.
60.36 The seller must provide written notice to the immediately
61.1 preceding former owner that the agricultural land or farm
61.2 homestead will be offered for sale at least 14 days before the
61.3 agricultural land or farm homestead is offered for sale.
61.4 (b) An immediately preceding former owner is the entity
61.5 with record legal title to the agricultural land or farm
61.6 homestead before acquisition by the state or federal agency or
61.7 corporation except: if the immediately preceding former owner
61.8 is a bankruptcy estate, the debtor in bankruptcy is the
61.9 immediately preceding former owner; and if the agricultural land
61.10 or farm homestead was acquired by termination of a contract for
61.11 deed or deed in lieu of termination of a contract for deed, the
61.12 immediately preceding former owner is the purchaser under the
61.13 contract for deed. For purposes of this subdivision, only a
61.14 family farm, family farm corporation, or family farm partnership
61.15 or family farm limited liability company can be an immediately
61.16 preceding former owner.
61.17 (c) An immediately preceding former owner may elect to
61.18 purchase or lease the entire property or an agreed to portion of
61.19 the property. If the immediately preceding former owner elects
61.20 to purchase or lease a portion of the property, the election
61.21 must be reported in writing to the seller or lessor prior to the
61.22 time the property is first offered for sale or lease. If
61.23 election is made to purchase or lease a portion of the property,
61.24 the portion must be contiguous and compact so that it does not
61.25 unreasonably reduce access to or the value of the remaining
61.26 property.
61.27 (d) For purposes of this subdivision, the term "a price no
61.28 higher than the highest price offered by a third party" means
61.29 the acceptable cash price offered by a third party or the
61.30 acceptable time-price offer made by a third party. A cash price
61.31 offer is one that involves simultaneous transfer of title for
61.32 payment of the entire amount of the offer. If the acceptable
61.33 offer made by a third party is a time-price offer, the seller or
61.34 lessor must make the same time-price offer or an equivalent cash
61.35 offer to the immediately preceding former owner. An equivalent
61.36 cash offer is equal to the total of the payments made over a
62.1 period of the time-price offer discounted by yield curve of the
62.2 United States treasury notes and bonds of similar maturity on
62.3 the first business day of the month in which the offer is
62.4 personally delivered or mailed for time periods similar to the
62.5 time period covered by the time-price offer, plus 2.0 percent.
62.6 A time-price offer is an offer that is financed entirely or
62.7 partially by the seller and includes an offer to purchase under
62.8 a contract for deed or mortgage. An equivalent cash offer is
62.9 not required to be made if the state participates in an offer to
62.10 a third party through the rural finance authority.
62.11 (e) This subdivision applies to a seller when the property
62.12 is sold and to a lessor each time the property is leased, for
62.13 the time period specified in section 500.24, subdivision 2,
62.14 paragraph (v), after the agricultural land is acquired except:
62.15 (1) an offer to lease to the immediately preceding former
62.16 owner is required only until the immediately preceding owner
62.17 fails to accept an offer to lease the property or the property
62.18 is sold;
62.19 (2) an offer to sell to the immediately preceding former
62.20 owner is required until the property is sold; and
62.21 (3) if the immediately preceding former owner elects to
62.22 lease or purchase a portion of the property, this subdivision
62.23 does not apply to the seller with regard to the balance of the
62.24 property after the election is made under paragraph (c).
62.25 (f) The notice of an offer under subdivision 2 that is
62.26 personally delivered with a signed receipt or sent by certified
62.27 mail with a receipt of mailing to the immediately preceding
62.28 former owner's last known address is a good faith offer.
62.29 (g) This subdivision does not apply to a sale or lease that
62.30 occurs after the seller or lessor has held the property for the
62.31 time period specified in section 500.24, subdivision 2,
62.32 paragraph (v) (x).
62.33 (h) For purposes of this subdivision, if the immediately
62.34 preceding former owner is a bankruptcy estate the debtor in the
62.35 bankruptcy is the immediately preceding owner.
62.36 (i) The immediately preceding former owner must exercise
63.1 the right to lease all or a portion of the agricultural land or
63.2 a homestead located on agricultural land in writing within 15
63.3 days after an offer to lease under this subdivision is mailed
63.4 with a receipt of mailing or personally delivered. If election
63.5 is made to lease only the homestead or a portion of the
63.6 agricultural land, the portion to be leased must be clearly
63.7 identified in writing. The immediately preceding former owner
63.8 must exercise the right to buy the agricultural land, a portion
63.9 of the agricultural land, or a farm homestead located on
63.10 agricultural land, in writing, within 65 days after an offer to
63.11 buy under this subdivision is mailed with a receipt of mailing
63.12 or is personally delivered. Within ten days after exercising
63.13 the right to lease or buy by accepting the offer, the
63.14 immediately preceding owner must fully perform according to the
63.15 terms of the offer including paying the amounts due. A seller
63.16 may sell and a lessor may lease the agricultural land or farm
63.17 homestead subject to this subdivision to the third party in
63.18 accordance with their lease or purchase agreement if:
63.19 (1) the immediately preceding former owner does not accept
63.20 an offer to lease or buy before the offer terminates; or
63.21 (2) the immediately preceding former owner does not perform
63.22 the obligations of the offer, including paying the amounts due,
63.23 within ten days after accepting the offer.
63.24 (j) A certificate indicating whether or not the property
63.25 contains agricultural land or a farm homestead that is signed by
63.26 the county assessor where the property is located and recorded
63.27 in the office of the county recorder or the registrar of titles
63.28 where the property is located is prima facie evidence of whether
63.29 the property is agricultural land or a farm homestead.
63.30 (k) As prima facie evidence that an offer to sell or lease
63.31 agricultural land or a farm homestead has terminated, a receipt
63.32 of mailing the notice under subdivision 2 and an affidavit,
63.33 signed by a person authorized to act on behalf of a state,
63.34 federal agency, or corporation selling or leasing the
63.35 agricultural land or a farm homestead may be filed in the office
63.36 of the county recorder or registrar of titles of the county
64.1 where the agricultural land or farm homestead is located. The
64.2 affidavit must state that:
64.3 (1) notice of an offer to buy or lease the agricultural
64.4 land or farm homestead was provided to the immediately preceding
64.5 former owner at a price not higher than the highest price
64.6 offered by a third party that is acceptable;
64.7 (2) the time during which the immediately preceding former
64.8 owner is required to exercise the right to buy or lease the
64.9 agricultural land or farm homestead has expired;
64.10 (3) the immediately preceding former owner has not
64.11 exercised the right to buy or lease the agricultural land or
64.12 farm homestead as provided in this subdivision or has accepted
64.13 an offer and has not fully performed according to the terms of
64.14 the offer; and
64.15 (4) the offer to the immediately preceding former owner has
64.16 terminated.
64.17 (l) The right of an immediately preceding former owner to
64.18 receive an offer to lease or purchase agricultural land under
64.19 this subdivision or to lease or purchase at a price no higher
64.20 than the highest price offered by a third party that is
64.21 acceptable to the seller or lessor may be extinguished or
64.22 limited by an express statement signed by the immediately
64.23 preceding owner that complies with the plain language
64.24 requirements of section 325G.31. The right may not be
64.25 extinguished or limited except by:
64.26 (1) an express statement in a deed in lieu of foreclosure
64.27 of the agricultural land;
64.28 (2) an express statement in a deed in lieu of a termination
64.29 of a contract for deed for the agricultural land;
64.30 (3) an express statement conveying the right to the state
64.31 or federal agency or corporation owning the agricultural land
64.32 that is required to make an offer under this subdivision;
64.33 however, the preceding former owner may rescind the conveyance
64.34 by notifying the state or federal agency or corporation in
64.35 writing within 20 calendar days after signing the express
64.36 statement;
65.1 (4) to cure a title defect, an express statement conveying
65.2 the right may be made to a person to whom the agricultural land
65.3 has been transferred by the state or federal agency or
65.4 corporation; or
65.5 (5) an express statement conveying the right to a contract
65.6 for deed vendee to whom the agricultural land or farm homestead
65.7 was sold under a contract for deed by the immediately preceding
65.8 former owner if the express statement and the contract for deed
65.9 are recorded.
65.10 (m) The right of an immediately preceding former owner to
65.11 receive an offer to lease or purchase agricultural land under
65.12 this subdivision may not be assigned or transferred except as
65.13 provided in paragraph (l), but may be inherited.
65.14 (n) An immediately preceding former owner, except a former
65.15 owner who is actively engaged in farming as defined in section
65.16 500.24, subdivision 2, paragraph (a), and who agrees to remain
65.17 actively engaged in farming on a portion of the agricultural
65.18 land or farm homestead for at least one year after accepting an
65.19 offer under this subdivision, may not sell agricultural land
65.20 acquired by accepting an offer under this subdivision if the
65.21 arrangement of the sale was negotiated or agreed to prior to the
65.22 former owner accepting the offer under this subdivision. A
65.23 person who sells property in violation of this paragraph is
65.24 liable for damages plus reasonable attorney fees to a person who
65.25 is damaged by a sale in violation of this paragraph. There is a
65.26 rebuttable presumption that a sale by an immediately preceding
65.27 former owner is in violation of this paragraph if the sale takes
65.28 place within 270 days of the former owner accepting the offer
65.29 under this subdivision. This paragraph does not apply to a sale
65.30 by an immediately preceding former owner to the owner's spouse,
65.31 the owner's parents, the owner's sisters and brothers, the
65.32 owner's spouse's sisters and brothers, or the owner's children.
65.33 Sec. 74. Minnesota Statutes 1998, section 500.245,
65.34 subdivision 2, is amended to read:
65.35 Subd. 2. [NOTICE OF OFFER.] (a) The state, a federal
65.36 agency, limited partnership, or a corporation, or limited
66.1 liability company subject to subdivision 1 must provide a notice
66.2 of an offer to sell or lease agricultural land substantially as
66.3 follows, after inserting the appropriate terms within the
66.4 parentheses:
66.5 "NOTICE OF OFFER TO (LEASE, BUY) AGRICULTURAL LAND
66.6 TO: (...Immediately preceding former owner...)
66.7 FROM: (...The state, federal agency, limited
66.8 partnership, or corporation, or limited
66.9 liability company subject to
66.10 subdivision 1...)
66.11 DATE: (...date notice is mailed or personally
66.12 delivered...)
66.13 (...The state, federal agency, limited partnership, or
66.14 corporation, or limited liability company...) HAS ACQUIRED THE
66.15 AGRICULTURAL LAND DESCRIBED BELOW AND HAS RECEIVED AN ACCEPTABLE
66.16 OFFER TO (LEASE, SELL) THE AGRICULTURAL LAND FROM ANOTHER
66.17 PARTY. UNDER MINNESOTA STATUTES, SECTION 500.245, SUBDIVISION
66.18 1, AN OFFER FROM (...the state, federal agency, limited
66.19 partnership, or corporation, or limited liability company...)
66.20 MUST BE MADE TO YOU AT A PRICE NO HIGHER THAN THE HIGHEST OFFER
66.21 MADE BY ANOTHER PARTY.
66.22 THE AGRICULTURAL LAND BEING OFFERED CONTAINS APPROXIMATELY
66.23 (...approximate number of acres...) ACRES AND IS INFORMALLY
66.24 DESCRIBED AS FOLLOWS:
66.25 (Informal description of the agricultural land being
66.26 offered that reasonably describes the land. This description
66.27 does not need to be a legal description.)
66.28 (...The state, federal agency, limited partnership, or
66.29 corporation, or limited liability company...) OFFERS TO (SELL,
66.30 LEASE) THE AGRICULTURAL LAND DESCRIBED ABOVE FOR A CASH PRICE OF
66.31 $(...cash price or equivalent cash price for lease and lease
66.32 period, or cash price or equivalent cash price for sale of
66.33 land...), WHICH IS NOT HIGHER THAN THE PRICE OFFERED BY ANOTHER
66.34 PARTY. THE PRICE IS OFFERED ON THE FOLLOWING TERMS:
66.35 (Terms, if any, of acceptable offer)
66.36 IF YOU WANT TO ACCEPT THIS OFFER YOU MUST NOTIFY (...the
67.1 state, federal agency, limited partnership, or corporation, or
67.2 limited liability company...) IN WRITING THAT YOU ACCEPT THE
67.3 OFFER OR SIGN UNDERNEATH THE FOLLOWING PARAGRAPH AND RETURN A
67.4 COPY OF THIS NOTICE BY (15 for a lease, 65 for a sale) DAYS
67.5 AFTER THIS NOTICE IS PERSONALLY DELIVERED OR MAILED TO YOU. THE
67.6 OFFER IN THIS NOTICE TERMINATES ON (...date of termination - 15
67.7 days for lease and 65 days for sale after date of mailing or
67.8 personal delivery...)
67.9 ACCEPTANCE OF OFFER
67.10 I ACCEPT THE OFFER TO (BUY, LEASE) THE AGRICULTURAL LAND
67.11 DESCRIBED ABOVE AT THE PRICE OFFERED TO ME IN THIS NOTICE. AS
67.12 PART OF ACCEPTING THIS OFFER I WILL PERFORM ACCORDING TO THE
67.13 TERMS OF THE OFFER, INCLUDING MAKING PAYMENTS DUE UNDER THE
67.14 OFFER, WITHIN TEN DAYS AFTER THE DATE I ACCEPT THIS OFFER. I
67.15 UNDERSTAND THAT NEGOTIATING OR AGREEING TO AN ARRANGEMENT TO
67.16 SELL THE AGRICULTURAL LAND TO ANOTHER PERSON PRIOR TO ACCEPTING
67.17 THIS OFFER MAY BE A VIOLATION OF LAW AND I MAY BE LIABLE TO A
67.18 PERSON DAMAGED BY THE SALE.
67.19
67.20 .........................................
67.21 Signature of Former Owner Accepting Offer
67.22
67.23 .........................................
67.24 Date"
67.25 IMPORTANT NOTICE
67.26 ANY ACTION FOR THE RECOVERY OF THE AGRICULTURAL LAND
67.27 DESCRIBED ABOVE OR ANY ACTION FOR DAMAGES, EXCEPT FOR DAMAGES
67.28 FOR FRAUD, REGARDING THIS OFFER MUST BE COMMENCED BY A LAWSUIT
67.29 BEFORE THE EXPIRATION OF THREE YEARS AFTER THIS LAND IS SOLD TO
67.30 ANOTHER PARTY. UPON FILING A LAWSUIT, YOU MUST ALSO FILE A
67.31 NOTICE OF LIS PENDENS WITH THE COUNTY RECORDER OR REGISTRAR OF
67.32 TITLES IN THE COUNTY WHERE THE LAND IS LOCATED.
67.33 (b) For an offer to sell, a copy of the purchase agreement
67.34 containing the price and terms of the highest offer made by a
67.35 third party that is acceptable to the seller and a signed
67.36 affidavit by the seller affirming that the purchase agreement is
67.37 true, accurate, and made in good faith must be included with the
68.1 notice under this subdivision. At the seller's discretion,
68.2 reference to the third party's identity may be deleted from the
68.3 copy of the purchase agreement.
68.4 (c) For an offer to lease, a copy of the lease containing
68.5 the price and terms of the highest offer made by a third party
68.6 that is acceptable to the lessor and a signed affidavit by the
68.7 lessor affirming that the lease is true, accurate, and made in
68.8 good faith must be included with the notice under this
68.9 subdivision. At the lessor's discretion, reference to the third
68.10 party's identity may be deleted from the copy of the lease
68.11 agreement.
68.12 (d) The affidavit under paragraphs (b) and (c) is subject
68.13 to section 609.48.
68.14 Sec. 75. [SEED POTATOES; CLEARWATER COUNTY.]
68.15 Notwithstanding the seed potato certification requirements
68.16 under Minnesota Statutes, section 21.1196, in calendar year
68.17 2000, seed potatoes may be planted in Clearwater county without
68.18 certification if the seed potatoes have had at least field
68.19 inspection as required for certified seed potatoes, have passed
68.20 the field inspection standards of disease tolerance, and are
68.21 free from ring rot.
68.22 Sec. 76. [EFFECTIVE DATE.]
68.23 Section 22 is effective the day following final enactment
68.24 and applies to claims for corrective action costs incurred after
68.25 that date. Sections 67 to 74 are effective the day following
68.26 final enactment.