SF 1564

Introduction - 80th Legislature (1997 - 1998)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to agriculture; providing for family farm 
  1.3             limited liability companies, authorized farm limited 
  1.4             liability companies, family farm limited liability 
  1.5             partnerships, and authorized farm limited liability 
  1.6             partnerships; amending Minnesota Statutes 1996, 
  1.7             section 500.24, subdivisions 2, 3, 3a, 3b, 4, 5, 6, 
  1.8             and 7. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1996, section 500.24, 
  1.11  subdivision 2, is amended to read: 
  1.12     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
  1.13  the terms defined in this subdivision have the meanings here 
  1.14  given them: 
  1.15     (a) "Farming" means the production of (1) agricultural 
  1.16  products; (2) livestock or livestock products; (3) milk or milk 
  1.17  products; or (4) fruit or other horticultural products.  It does 
  1.18  not include the processing, refining, or packaging of said 
  1.19  products, nor the provision of spraying or harvesting services 
  1.20  by a processor or distributor of farm products.  It does not 
  1.21  include the production of timber or forest products or the 
  1.22  production of poultry or poultry products. 
  1.23     (b) "Family farm" means an unincorporated farming unit 
  1.24  owned by one or more persons residing on the farm or actively 
  1.25  engaging in farming. 
  1.26     (c) "Family farm corporation" means a corporation founded 
  1.27  for the purpose of farming and the ownership of agricultural 
  2.1   land in which the majority of the voting stock is held by and 
  2.2   the majority of the stockholders are persons or the spouses of 
  2.3   persons related to each other within the third degree of kindred 
  2.4   according to the rules of the civil law, and at least one of 
  2.5   said related persons is residing on or actively operating the 
  2.6   farm, and none of whose stockholders are corporations; provided 
  2.7   that a family farm corporation shall not cease to qualify as 
  2.8   such hereunder by reason of any devise or bequest of shares of 
  2.9   voting stock. 
  2.10     (d) "Authorized farm corporation" means a corporation 
  2.11  meeting the following standards under clause (1) or (2): 
  2.12     (1)(i) its shareholders do not exceed five in number; 
  2.13     (ii) all its shareholders, other than any estate are 
  2.14  natural persons; 
  2.15     (iii) it does not have more than one class of shares; and 
  2.16     (iv) its revenues from rent, royalties, dividends, interest 
  2.17  and annuities does not exceed 20 percent of its gross receipts; 
  2.18  and 
  2.19     (v) shareholders holding 51 percent or more of the interest 
  2.20  in the corporation must be residing on the farm or actively 
  2.21  engaging in farming; 
  2.22     (vi) the authorized farm corporation, directly or 
  2.23  indirectly, owns or otherwise has an interest, whether legal, 
  2.24  beneficial, or otherwise, in any title to no more than 1,500 
  2.25  acres of real estate used for farming or capable of being used 
  2.26  for farming in this state; and 
  2.27     (vii) a shareholder of the authorized farm corporation is 
  2.28  not a shareholder in other authorized farm corporations that 
  2.29  directly or indirectly in combination with the authorized farm 
  2.30  corporation own not more than 1,500 acres of real estate used 
  2.31  for farming or capable of being used for farming in this state; 
  2.32  or 
  2.33     (2)(i) the corporation is engaged in the production of 
  2.34  livestock other than dairy cattle; and not engaged in farming 
  2.35  activities otherwise prohibited under this section; 
  2.36     (ii) all its shareholders other than an estate, are natural 
  3.1   persons or a family farm corporation; 
  3.2      (iii) it does not have more than one class of shares; 
  3.3      (iv) its revenue from rent, royalties, dividends, interest 
  3.4   and annuities does not exceed 20 percent of its gross receipts; 
  3.5      (v) shareholders holding 75 percent or more of the control 
  3.6   and financial investment in the corporation must be farmers 
  3.7   residing in Minnesota and at least 51 percent of the required 
  3.8   percentage of farmers must be actively engaged in livestock 
  3.9   production; 
  3.10     (vi) the authorized farm corporation, directly or 
  3.11  indirectly, owns or otherwise has an interest, whether legal, 
  3.12  beneficial, or otherwise, in any title to no more than 1,500 
  3.13  acres of real estate used for farming or capable of being used 
  3.14  for farming in this state; 
  3.15     (vii) a shareholder of the authorized farm corporation is 
  3.16  not a shareholder in other authorized farm corporations that 
  3.17  directly or indirectly in combination with the authorized farm 
  3.18  corporation own not more than 1,500 acres of real estate used 
  3.19  for farming or capable of being used for farming in this state; 
  3.20  and 
  3.21     (viii) the corporation was formed for the production of 
  3.22  livestock other than dairy cattle by natural persons or family 
  3.23  farm corporations that provide 75 percent or more of the capital 
  3.24  investment. 
  3.25     (e) "Agricultural land" means land used for farming. 
  3.26     (f) "Pension or investment fund" means a pension or 
  3.27  employee welfare benefit fund, however organized, a mutual fund, 
  3.28  a life insurance company separate account, a common trust of a 
  3.29  bank or other trustee established for the investment and 
  3.30  reinvestment of money contributed to it, a real estate 
  3.31  investment trust, or an investment company as defined in United 
  3.32  States Code, title 15, section 80a-3.  "Pension or investment 
  3.33  fund" does not include a benevolent trust established by the 
  3.34  owners of a family farm, authorized farm corporation or family 
  3.35  farm corporation.  
  3.36     (g) "Farm homestead" means a house including adjoining 
  4.1   buildings that has been used as part of a farming operation or 
  4.2   is part of the agricultural land used for a farming operation. 
  4.3      (h) "Family farm partnership" means a limited partnership 
  4.4   formed for the purpose of farming and the ownership of 
  4.5   agricultural land in which the majority of the interests in the 
  4.6   partnership is held by and the majority of the partners are 
  4.7   persons or the spouses of persons related to each other within 
  4.8   the third degree of kindred according to the rules of the civil 
  4.9   law, and at least one of the related persons is residing on or 
  4.10  actively operating the farm, and none of the partners are 
  4.11  corporations.  A family farm partnership does not cease to 
  4.12  qualify as a family farm partnership because of a devise or 
  4.13  bequest of interest in the partnership.  
  4.14     (i) "Authorized farm partnership" means a limited 
  4.15  partnership meeting the following standards:  
  4.16     (1) it has been issued a certificate from the secretary of 
  4.17  state or is registered with the county recorder and farming and 
  4.18  ownership of agricultural land is stated as a purpose or 
  4.19  character of the business; 
  4.20     (2) its partners do not exceed five in number; 
  4.21     (3) all its partners, other than an estate, are natural 
  4.22  persons; 
  4.23     (4) its revenues from rent, royalties, dividends, interest, 
  4.24  and annuities do not exceed 20 percent of its gross receipts; 
  4.25     (5) its general partners hold at least 51 percent of the 
  4.26  interest in the land assets of the partnership and reside on the 
  4.27  farm or are actively engaging in farming not more than 1,500 
  4.28  acres as a general partner in an authorized limited partnership; 
  4.29     (6) its limited partners do not participate in the business 
  4.30  of the limited partnership including operating, managing, or 
  4.31  directing management of farming operations; 
  4.32     (7) the authorized farm partnership, directly or 
  4.33  indirectly, does not own or otherwise have an interest, whether 
  4.34  legal, beneficial, or otherwise, in a title to more than 1,500 
  4.35  acres of real estate used for farming or capable of being used 
  4.36  for farming in this state; and 
  5.1      (8) a limited partner of the authorized farm partnership is 
  5.2   not a limited partner in other authorized farm partnerships that 
  5.3   directly or indirectly in combination with the authorized farm 
  5.4   partnership own not more than 1,500 acres of real estate used 
  5.5   for farming or capable of being used for farming in this state.  
  5.6      (j) "Farmer" means a person who regularly participates in 
  5.7   physical labor or operations management in the farmer's farming 
  5.8   operation and files "Schedule F" as part of the person's annual 
  5.9   Form 1040 filing with the United States Internal Revenue Service.
  5.10     (k) "Actively engaged in livestock production" means that a 
  5.11  person performs day-to-day physical labor or day-to-day 
  5.12  operations management that significantly contributes to 
  5.13  livestock production and the functioning of a livestock 
  5.14  operation. 
  5.15     (l) "Family farm limited liability company" means a limited 
  5.16  liability company founded for the purpose of farming and the 
  5.17  ownership of agricultural land in which the majority of the 
  5.18  membership interests in the limited liability company are held 
  5.19  by and the majority of the members are persons or the spouses of 
  5.20  persons related to each other within the third degree of kindred 
  5.21  according to the rules of the civil law.  At least one of the 
  5.22  related persons must be residing on or actively operating the 
  5.23  farm and none of the members may be corporations or limited 
  5.24  liability companies.  A family farm limited liability company 
  5.25  does not cease to qualify as a family farm limited liability 
  5.26  company because of a devise or bequest of a membership interest 
  5.27  in the limited liability company. 
  5.28     (m) "Authorized farm limited liability company" means a 
  5.29  limited liability company meeting the standards in clause (1) or 
  5.30  (2): 
  5.31     (1)(i) its members do not exceed five in number; 
  5.32     (ii) all its members, other than an estate, are natural 
  5.33  persons; 
  5.34     (iii) it does not have more than one class of membership 
  5.35  interest; 
  5.36     (iv) its revenues from rent, royalties, dividends, 
  6.1   interest, and annuities do not exceed 20 percent of its gross 
  6.2   receipts; 
  6.3      (v) members holding 51 percent or more of both the 
  6.4   governance rights and financial rights in the limited liability 
  6.5   company reside on the farm or actively engage in farming; 
  6.6      (vi) it does not own or otherwise have an interest, 
  6.7   directly or indirectly, whether legal, beneficial, or otherwise, 
  6.8   in title to more than 1,500 acres of real estate used for 
  6.9   farming or capable of being used for farming in this state; and 
  6.10     (vii) a member of the limited liability company is not a 
  6.11  member in one or more other authorized farm limited liability 
  6.12  companies that directly or indirectly, in combination with the 
  6.13  authorized farm limited liability company, own more than 1,500 
  6.14  acres of real estate used for farming or capable of being used 
  6.15  for farming in this state; or 
  6.16     (2)(i) the limited liability company is engaged in the 
  6.17  production of livestock other than dairy cattle and is not 
  6.18  engaged in farming activities otherwise prohibited under this 
  6.19  section; 
  6.20     (ii) all its members, other than an estate, are natural 
  6.21  persons or a family farm corporation; 
  6.22     (iii) it does not have more than one class of membership 
  6.23  interests; 
  6.24     (iv) its revenue from rent, royalties, dividends, interest, 
  6.25  and annuities does not exceed 20 percent of its gross receipts; 
  6.26     (v) members holding 75 percent or more of both the 
  6.27  governance rights and financial rights in the limited liability 
  6.28  company are farmers residing in Minnesota and at least 51 
  6.29  percent of the required percentage of farmers are actively 
  6.30  engaged in livestock production; 
  6.31     (vi) it does not own or otherwise have an interest, 
  6.32  directly or indirectly, whether legal, beneficial, or otherwise, 
  6.33  in title to more than 1,500 acres of real estate used for 
  6.34  farming or capable of being used for farming in this state; 
  6.35     (vii) a member of the limited liability company is not a 
  6.36  member in other authorized farm limited liability companies that 
  7.1   directly or indirectly, in combination with the authorized farm 
  7.2   limited liability company, own more than 1,500 acres of real 
  7.3   estate used for farming or capable of being used for farming in 
  7.4   this state; and 
  7.5      (viii) the limited liability company was formed for the 
  7.6   production of livestock other than dairy cattle by natural 
  7.7   persons or family farm corporations that provide 75 percent or 
  7.8   more of the capital investment. 
  7.9      (n) "Family farm limited liability partnership" means a 
  7.10  limited liability partnership formed for the purpose of farming 
  7.11  and the ownership of agricultural land in which the majority of 
  7.12  the interests in the partnership is held by and the majority of 
  7.13  the partners are persons or the spouses of persons related to 
  7.14  each other within the third degree of kindred according to the 
  7.15  rules of the civil law, at least one of the related persons is 
  7.16  residing on or actively operating the farm, and none of the 
  7.17  partners are corporations.  A family farm limited liability 
  7.18  partnership does not cease to qualify as a family farm limited 
  7.19  liability partnership because of a devise or bequest of interest 
  7.20  in the partnership.  
  7.21     (o) "Authorized farm limited liability partnership" means a 
  7.22  limited liability partnership meeting the following standards:  
  7.23     (1) it has been issued a certificate from the secretary of 
  7.24  state or is registered with the county recorder and farming and 
  7.25  ownership of agricultural land is stated as a purpose or 
  7.26  character of the business; 
  7.27     (2) its partners do not exceed five in number; 
  7.28     (3) all its partners, other than an estate, are natural 
  7.29  persons; 
  7.30     (4) its revenues from rent, royalties, dividends, interest, 
  7.31  and annuities do not exceed 20 percent of its gross receipts; 
  7.32     (5) partners holding at least 51 percent of the interest in 
  7.33  the land assets of the partnership reside on the farm or 
  7.34  actively engage in farming not more than 1,500 acres as a 
  7.35  partner in an authorized limited liability partnership; 
  7.36     (6) it does not own or otherwise have an interest, directly 
  8.1   or indirectly, whether legal, beneficial, or otherwise, in title 
  8.2   to more than 1,500 acres of real estate used for farming or 
  8.3   capable of being used for farming in this state; and 
  8.4      (7) a partner of the authorized farm limited liability 
  8.5   partnership is not a partner in other authorized farm limited 
  8.6   liability partnerships that directly or indirectly, in 
  8.7   combination with the authorized farm limited liability 
  8.8   partnership, own not more than 1,500 acres of real estate used 
  8.9   for farming or capable of being used for farming in this state.  
  8.10     Sec. 2.  Minnesota Statutes 1996, section 500.24, 
  8.11  subdivision 3, is amended to read: 
  8.12     Subd. 3.  [CORPORATE FARMING, AG LAND OWNERSHIP 
  8.13  RESTRICTED.] No corporation, limited liability company, pension 
  8.14  or investment fund, or limited partnership, or limited liability 
  8.15  partnership shall engage in farming; nor shall any corporation, 
  8.16  limited liability company, pension or investment fund, or 
  8.17  limited partnership, or limited liability partnership, directly 
  8.18  or indirectly, own, acquire, or otherwise obtain an interest, 
  8.19  whether legal, beneficial or otherwise, in any title to real 
  8.20  estate used for farming or capable of being used for farming in 
  8.21  this state.  Livestock that are delivered for slaughter or 
  8.22  processing may be fed and cared for by a corporation up to 20 
  8.23  days prior to slaughter or processing.  Provided, however, that 
  8.24  the restrictions in this subdivision do not apply to 
  8.25  corporations or, partnerships, limited liability companies, or 
  8.26  limited liability partnerships in clause (b) and do not apply to 
  8.27  corporations, limited partnerships, limited liability companies, 
  8.28  limited liability partnerships, and pension or investment funds 
  8.29  that record its name and the particular exception under clauses 
  8.30  (a) to (s) under which the agricultural land is owned or farmed, 
  8.31  have a conservation plan prepared for the agricultural land, 
  8.32  report as required under subdivision 4, and satisfy one of the 
  8.33  following conditions under clauses (a) to (s): 
  8.34     (a) a bona fide encumbrance taken for purposes of security; 
  8.35     (b) a family farm corporation, an authorized farm 
  8.36  corporation, a family farm partnership, or an authorized farm 
  9.1   partnership, a family farm limited liability company, an 
  9.2   authorized farm limited liability company, a family farm limited 
  9.3   liability partnership, or an authorized farm limited liability 
  9.4   partnership, as defined in subdivision 2 or a general 
  9.5   partnership; 
  9.6      (c) agricultural land and land capable of being used for 
  9.7   farming owned by a corporation as of May 20, 1973, or a pension 
  9.8   or investment fund as of May 12, 1981, including the normal 
  9.9   expansion of such ownership at a rate not to exceed 20 percent 
  9.10  of the amount of land owned as of May 20, 1973, or, in the case 
  9.11  of a pension or investment fund, as of May 12, 1981, measured in 
  9.12  acres, in any five-year period, and including additional 
  9.13  ownership reasonably necessary to meet the requirements of 
  9.14  pollution control rules; 
  9.15     (d) agricultural land operated for research or experimental 
  9.16  purposes with the approval of the commissioner of agriculture, 
  9.17  provided that any commercial sales from the operation must be 
  9.18  incidental to the research or experimental objectives of the 
  9.19  corporation.  A corporation, limited partnership, limited 
  9.20  liability company, limited liability partnership, or pension or 
  9.21  investment fund seeking to operate agricultural land for 
  9.22  research or experimental purposes must submit to the 
  9.23  commissioner a prospectus or proposal of the intended method of 
  9.24  operation, containing information required by the commissioner 
  9.25  including a copy of any operational contract with individual 
  9.26  participants, prior to initial approval of an operation.  A 
  9.27  corporation, limited partnership, limited liability company, 
  9.28  limited liability partnership, or pension or investment fund 
  9.29  operating agricultural land for research or experimental 
  9.30  purposes prior to May 1, 1988, must comply with all requirements 
  9.31  of this clause except the requirement for initial approval of 
  9.32  the project; 
  9.33     (e) agricultural land operated by a corporation or, limited 
  9.34  partnership, limited liability company, or limited liability 
  9.35  partnership for the purpose of raising breeding stock, including 
  9.36  embryos, for resale to farmers or operated for the purpose of 
 10.1   growing seed, wild rice, nursery plants or sod.  An entity that 
 10.2   is organized to raise livestock other than dairy cattle under 
 10.3   this clause that does not meet the definition requirement for an 
 10.4   authorized farm corporation must: 
 10.5      (1) sell all castrated animals to be fed out or finished to 
 10.6   farming operations that are neither directly nor indirectly 
 10.7   owned by the business entity operating the breeding stock 
 10.8   operation; and 
 10.9      (2) report its total production and sales annually to the 
 10.10  commissioner of agriculture; 
 10.11     (f) agricultural land and land capable of being used for 
 10.12  farming leased by a corporation or, limited partnership, limited 
 10.13  liability company, or limited liability partnership in an 
 10.14  amount, measured in acres, not to exceed the acreage under lease 
 10.15  to such corporation as of May 20, 1973, or to the limited 
 10.16  partnership as of May 1, 1988, or to the limited liability 
 10.17  company or limited liability partnership as of May 20, 1997, and 
 10.18  the additional acreage required for normal expansion at a rate 
 10.19  not to exceed 20 percent of the amount of land leased as of May 
 10.20  20, 1973, for a corporation or, May 1, 1988, for a limited 
 10.21  partnership, or May 20, 1997, for a limited liability company or 
 10.22  a limited liability partnership in any five-year period, and the 
 10.23  additional acreage reasonably necessary to meet the requirements 
 10.24  of pollution control rules; 
 10.25     (g) agricultural land when acquired as a gift (either by 
 10.26  grant or a devise) by an educational, religious, or charitable 
 10.27  nonprofit corporation or by a pension or investment fund or, 
 10.28  limited partnership, limited liability company, or limited 
 10.29  liability partnership; provided that all lands so acquired by a 
 10.30  pension or investment fund, and all lands so acquired by a 
 10.31  corporation or, limited partnership, limited liability company, 
 10.32  or limited liability partnership which are not operated for 
 10.33  research or experimental purposes, or are not operated for the 
 10.34  purpose of raising breeding stock for resale to farmers or 
 10.35  operated for the purpose of growing seed, wild rice, nursery 
 10.36  plants or sod must be disposed of within ten years after 
 11.1   acquiring title thereto; 
 11.2      (h) agricultural land acquired by a pension or investment 
 11.3   fund or a corporation other than a family farm corporation or 
 11.4   authorized farm corporation, as defined in subdivision 2, or a 
 11.5   limited partnership other than a family farm partnership or 
 11.6   authorized farm partnership as defined in subdivision 2, or a 
 11.7   limited liability company or limited liability partnership other 
 11.8   than those defined in subdivision 2, for which the 
 11.9   corporation or, limited partnership, limited liability company, 
 11.10  or limited liability partnership has documented plans to use and 
 11.11  subsequently uses the land within six years from the date of 
 11.12  purchase for a specific nonfarming purpose, or if the land is 
 11.13  zoned nonagricultural, or if the land is located within an 
 11.14  incorporated area.  A pension or investment fund or a 
 11.15  corporation or, limited partnership, limited liability company, 
 11.16  or limited liability partnership may hold such agricultural land 
 11.17  in such acreage as may be necessary to its nonfarm business 
 11.18  operation; provided, however, that pending the development of 
 11.19  agricultural land for nonfarm purposes, such land may not be 
 11.20  used for farming except under lease to a family farm unit, a 
 11.21  family farm corporation, an authorized farm corporation, a 
 11.22  family farm partnership, or an authorized farm partnership, a 
 11.23  family farm limited liability company, an authorized farm 
 11.24  limited liability company, a family farm limited liability 
 11.25  partnership, or an authorized farm limited liability partnership 
 11.26  or except when controlled through ownership, options, 
 11.27  leaseholds, or other agreements by a corporation which has 
 11.28  entered into an agreement with the United States of America 
 11.29  pursuant to the New Community Act of 1968 (Title IV of the 
 11.30  Housing and Urban Development Act of 1968, United States Code, 
 11.31  title 42, sections 3901 to 3914) as amended, or a subsidiary or 
 11.32  assign of such a corporation; 
 11.33     (i) agricultural lands acquired by a pension or investment 
 11.34  fund or a corporation or, limited partnership, limited liability 
 11.35  company, or limited liability partnership by process of law in 
 11.36  the collection of debts, or by any procedure for the enforcement 
 12.1   of a lien or claim thereon, whether created by mortgage or 
 12.2   otherwise; provided, however, that all lands so acquired be 
 12.3   disposed of within ten years after acquiring the title if 
 12.4   acquired before May 1, 1988, and five years after acquiring the 
 12.5   title if acquired on or after May 1, 1988, acquiring the title 
 12.6   thereto, and further provided that the land so acquired shall 
 12.7   not be used for farming during the ten-year or five-year period 
 12.8   except under a lease to a family farm unit, a family farm 
 12.9   corporation, an authorized farm corporation, a family farm 
 12.10  partnership, or an authorized farm partnership, a family farm 
 12.11  limited liability company, an authorized farm limited liability 
 12.12  company, a family farm limited liability partnership, or an 
 12.13  authorized farm limited liability partnership.  The 
 12.14  aforementioned ten-year or five-year limitation period shall be 
 12.15  deemed a covenant running with the title to the land against any 
 12.16  grantee, assignee, or successor of the pension or investment 
 12.17  fund, corporation, or limited partnership, limited liability 
 12.18  company, or limited liability partnership.  Notwithstanding the 
 12.19  five-year divestiture requirement under this clause, a financial 
 12.20  institution may continue to own the agricultural land if the 
 12.21  agricultural land is leased to the immediately preceding former 
 12.22  owner, but must divest of the agricultural land within the 
 12.23  ten-year period.  Livestock acquired by a pension or investment 
 12.24  fund, corporation, or limited partnership, limited liability 
 12.25  company, or limited liability partnership in the collection of 
 12.26  debts, or by a procedure for the enforcement of lien or claim on 
 12.27  the livestock whether created by security agreement or otherwise 
 12.28  after August 1, 1994, must be sold or disposed of within one 
 12.29  full production cycle for the type of livestock acquired or 18 
 12.30  months after the livestock is acquired, whichever is later; 
 12.31     (j) agricultural land acquired by a corporation regulated 
 12.32  under the provisions of Minnesota Statutes 1974, chapter 216B, 
 12.33  for purposes described in that chapter or by an electric 
 12.34  generation or transmission cooperative for use in its business, 
 12.35  provided, however, that such land may not be used for farming 
 12.36  except under lease to a family farm unit, a family farm 
 13.1   corporation, or a family farm partnership, a family farm limited 
 13.2   liability company, or a family farm limited liability 
 13.3   partnership; 
 13.4      (k) agricultural land, either leased or owned, totaling no 
 13.5   more than 2,700 acres, acquired after May 20, 1973, for the 
 13.6   purpose of replacing or expanding asparagus growing operations, 
 13.7   provided that such corporation had established 2,000 acres of 
 13.8   asparagus production; 
 13.9      (l) all agricultural land or land capable of being used for 
 13.10  farming which was owned or leased by an authorized farm 
 13.11  corporation as defined in Minnesota Statutes 1974, section 
 13.12  500.24, subdivision 1, clause (d), but which does not qualify as 
 13.13  an authorized farm corporation as defined in subdivision 2, 
 13.14  clause (d); 
 13.15     (m) a corporation formed primarily for religious purposes 
 13.16  whose sole income is derived from agriculture; 
 13.17     (n) agricultural land owned or leased by a corporation 
 13.18  prior to August 1, 1975, which was exempted from the restriction 
 13.19  of this subdivision under the provisions of Laws 1973, chapter 
 13.20  427, including normal expansion of such ownership or leasehold 
 13.21  interest to be exercised at a rate not to exceed 20 percent of 
 13.22  the amount of land owned or leased on August 1, 1975, in any 
 13.23  five-year period and the additional ownership reasonably 
 13.24  necessary to meet requirements of pollution control rules; 
 13.25     (o) agricultural land owned or leased by a corporation 
 13.26  prior to August 1, 1978, including normal expansion of such 
 13.27  ownership or leasehold interest, to be exercised at a rate not 
 13.28  to exceed 20 percent of the amount of land owned or leased on 
 13.29  August 1, 1978, and the additional ownership reasonably 
 13.30  necessary to meet requirements of pollution control rules, 
 13.31  provided that nothing herein shall reduce any exemption 
 13.32  contained under the provisions of Laws 1975, chapter 324, 
 13.33  section 1, subdivision 2; 
 13.34     (p) an interest in the title to agricultural land acquired 
 13.35  by a pension fund or family trust established by the owners of a 
 13.36  family farm, authorized farm corporation or family farm 
 14.1   corporation, but limited to the farm on which one or more of 
 14.2   those owners or shareholders have resided or have been actively 
 14.3   engaged in farming as required by subdivision 2, clause (b), 
 14.4   (c), or (d); 
 14.5      (q) agricultural land owned by a nursing home located in a 
 14.6   city with a population, according to the state demographer's 
 14.7   1985 estimate, between 900 and 1,000, in a county with a 
 14.8   population, according to the state demographer's 1985 estimate, 
 14.9   between 18,000 and 19,000, if the land was given to the nursing 
 14.10  home as a gift with the expectation that it would not be sold 
 14.11  during the donor's lifetime.  This exemption is available until 
 14.12  July 1, 1995; 
 14.13     (r) the acreage of agricultural land and land capable of 
 14.14  being used for farming owned and recorded by an authorized farm 
 14.15  corporation as defined in Minnesota Statutes 1986, section 
 14.16  500.24, subdivision 2, paragraph (d), or a limited partnership 
 14.17  as of May 1, 1988, or a limited liability company or limited 
 14.18  liability partnership as of May 20, 1997, including the normal 
 14.19  expansion of the ownership at a rate not to exceed 20 percent of 
 14.20  the land owned and recorded as of May 1, 1988, or as of May 20, 
 14.21  1997, for a limited liability company or limited liability 
 14.22  partnership, measured in acres, in any five-year period, and 
 14.23  including additional ownership reasonably necessary to meet the 
 14.24  requirements of pollution control rules; 
 14.25     (s) agricultural land owned or leased as a necessary part 
 14.26  of an aquatic farm as defined in section 17.47, subdivision 3. 
 14.27     Sec. 3.  Minnesota Statutes 1996, section 500.24, 
 14.28  subdivision 3a, is amended to read: 
 14.29     Subd. 3a.  [LEASE CONSERVATION PRACTICE CLAUSE.] A 
 14.30  corporation, pension or investment fund, or limited partnership, 
 14.31  limited liability company, or limited liability partnership, 
 14.32  other than a family farm corporation, an authorized farm 
 14.33  corporation, a family farm partnership, or an authorized farm 
 14.34  partnership, a family farm limited liability company, an 
 14.35  authorized farm limited liability company, a family farm limited 
 14.36  liability partnership, or an authorized farm limited liability 
 15.1   partnership when leasing farm land to a family farm unit, a 
 15.2   family farm corporation, an authorized farm corporation, a 
 15.3   family farm partnership, or an authorized farm partnership, a 
 15.4   family farm limited liability company, an authorized farm 
 15.5   limited liability company, a family farm limited liability 
 15.6   partnership, or an authorized farm limited liability partnership 
 15.7   under provisions of subdivision 3, clause (i), must include 
 15.8   within the lease agreement a provision prohibiting intentional 
 15.9   damage or destruction to a conservation practice on the 
 15.10  agricultural land. 
 15.11     Sec. 4.  Minnesota Statutes 1996, section 500.24, 
 15.12  subdivision 3b, is amended to read: 
 15.13     Subd. 3b.  [PROTECTION OF CONSERVATION PRACTICES.] If a 
 15.14  corporation, pension or investment fund, or limited partnership, 
 15.15  limited liability company, or limited liability partnership, 
 15.16  other than a family farm corporation, an authorized farm 
 15.17  corporation, a family farm partnership, or an authorized farm 
 15.18  partnership, a family farm limited liability company, an 
 15.19  authorized farm limited liability company, a family farm limited 
 15.20  liability partnership, or an authorized farm limited liability 
 15.21  partnership, during the period of time it holds agricultural 
 15.22  land under subdivision 3, clause (i), intentionally destroys a 
 15.23  conservation practice as defined in section 103F.401, 
 15.24  subdivision 3, to which the state has made a financial 
 15.25  contribution, the corporation, pension or investment fund, or 
 15.26  limited partnership, limited liability company, or limited 
 15.27  liability partnership must pay the commissioner of agriculture, 
 15.28  for deposit in the general fund, an amount equal to the state's 
 15.29  total contributions to that conservation practice plus interest 
 15.30  from the time of investment in the conservation practice.  
 15.31  Interest must be calculated at an annual percentage rate of 12 
 15.32  percent. 
 15.33     Sec. 5.  Minnesota Statutes 1996, section 500.24, 
 15.34  subdivision 4, is amended to read: 
 15.35     Subd. 4.  [REPORTS.] (a) The chief executive officer of 
 15.36  every pension or investment fund, corporation, or limited 
 16.1   partnership, limited liability company, or limited liability 
 16.2   partnership, except a family farm corporation or, a family farm 
 16.3   limited partnership, a family farm limited liability company, or 
 16.4   a family farm limited liability partnership, that holds any 
 16.5   interest in agricultural land or land used for the breeding, 
 16.6   feeding, pasturing, growing, or raising of livestock, dairy or 
 16.7   poultry, or products thereof, or land used for the production of 
 16.8   agricultural crops or fruit or other horticultural products, 
 16.9   other than a bona fide encumbrance taken for purposes of 
 16.10  security, or which is engaged in farming or proposing to 
 16.11  commence farming in this state after May 20, 1973, shall file 
 16.12  with the commissioner of agriculture a report containing the 
 16.13  following information and documents: 
 16.14     (1) the name of the pension or investment fund, 
 16.15  corporation, or limited partnership, limited liability company, 
 16.16  or limited liability partnership and its place of incorporation, 
 16.17  certification, or registration; 
 16.18     (2) the address of the pension or investment plan 
 16.19  headquarters or of the registered office of the corporation in 
 16.20  this state, the name and address of its registered agent in this 
 16.21  state and, in the case of a foreign corporation or limited 
 16.22  partnership, the address of its principal office in its place of 
 16.23  incorporation, certification, or registration; 
 16.24     (3) the acreage and location listed by quarter-quarter 
 16.25  section, township and county of each lot or parcel of land in 
 16.26  this state owned or leased by the pension or investment fund, 
 16.27  limited partnership, or corporation, limited liability company, 
 16.28  or limited liability partnership and used for the growing of 
 16.29  crops or the keeping or feeding of poultry or livestock; 
 16.30     (4) the names and addresses of the officers, 
 16.31  administrators, directors or trustees of the pension or 
 16.32  investment fund, or of the officers, shareholders owning more 
 16.33  than ten percent of the stock, including the percent of stock 
 16.34  owned by each such shareholder, and the members of the board of 
 16.35  directors of the corporation, and the general and limited 
 16.36  partners and the percentage of interest in the partnership by 
 17.1   each partner, and the managers and the members of the board of 
 17.2   governors of the limited liability company; 
 17.3      (5) the farm products which the pension or investment fund, 
 17.4   limited partnership, or corporation, limited liability company, 
 17.5   or limited liability partnership produces or intends to produce 
 17.6   on its agricultural land; 
 17.7      (6) with the first report, a copy of the title to the 
 17.8   property where the farming operations are or will occur 
 17.9   indicating the particular exception claimed under subdivision 3, 
 17.10  clauses (a) to (r); and 
 17.11     (7) with the first or second report, a copy of the 
 17.12  conservation plan proposed by the soil and water conservation 
 17.13  district, and with subsequent reports a statement of whether the 
 17.14  conservation plan was implemented. 
 17.15     The report of a corporation an organization seeking to 
 17.16  qualify hereunder as a family farm corporation, an authorized 
 17.17  farm corporation, a family farm partnership, or authorized farm 
 17.18  partnership, a family farm limited liability company, an 
 17.19  authorized farm limited liability company, a family farm limited 
 17.20  liability partnership, or an authorized farm limited liability 
 17.21  partnership shall contain the following additional information:  
 17.22  the number of shares or the partnership interests owned by 
 17.23  persons residing on the farm or actively engaged in farming, or 
 17.24  their relatives within the third degree of kindred according to 
 17.25  the rules of the civil law or their spouses; the name, address, 
 17.26  and number of shares owned by each shareholder or, partnership 
 17.27  interests owned by each partner, or governance rights and 
 17.28  financial rights owned by each member; and a statement as to 
 17.29  percentage of gross receipts of the corporation derived from 
 17.30  rent, royalties, dividends, interest, and annuities.  No pension 
 17.31  or investment fund, limited partnership, or corporation, limited 
 17.32  liability company, or limited liability partnership shall 
 17.33  commence farming in this state until the commissioner of 
 17.34  agriculture has inspected the report and certified that its 
 17.35  proposed operations comply with the provisions of this section. 
 17.36     (b) Every pension or investment fund, limited partnership, 
 18.1   or corporation, limited liability company, or limited liability 
 18.2   partnership as described in clause (a) shall, prior to April 15 
 18.3   of each year, file with the commissioner of agriculture a report 
 18.4   containing the information required in clause (a), based on its 
 18.5   operations in the preceding calendar year and its status at the 
 18.6   end of the year.  A pension or investment fund, limited 
 18.7   partnership, or corporation, limited liability company, or 
 18.8   limited liability partnership that does not file the report by 
 18.9   April 15 must pay a $500 civil penalty.  The penalty is a lien 
 18.10  on the land being farmed under subdivision 3 until the penalty 
 18.11  is paid. 
 18.12     (c) The commissioner or the commissioner's authorized 
 18.13  representative may enter into a written agreement with a person 
 18.14  required to file a report under this subdivision who, for good 
 18.15  cause shown, has failed to make a timely filing.  An agreement 
 18.16  must be construed as a "no contest" pleading and may encompass a 
 18.17  reduction or waiver of the civil penalty for late filing.  The 
 18.18  agreement is final and conclusive with respect to the civil 
 18.19  penalty, except upon a showing of fraud or malfeasance or 
 18.20  misrepresentation of a material fact.  The matter agreed upon in 
 18.21  the agreement may not be reopened or modified by an officer, 
 18.22  employee, or agent of the state.  The report required under 
 18.23  paragraph (b) must be completed prior to a reduction or waiver 
 18.24  under this paragraph.  The commissioner may enter into an 
 18.25  agreement under this paragraph only once for each person 
 18.26  required to file under this subdivision.  The commissioner may 
 18.27  enter into an agreement under this paragraph only once for each 
 18.28  corporation or, partnership, limited liability company, or 
 18.29  limited liability partnership. 
 18.30     (d) Failure to file a required report, or the willful 
 18.31  filing of false information, shall constitute a gross 
 18.32  misdemeanor. 
 18.33     Sec. 6.  Minnesota Statutes 1996, section 500.24, 
 18.34  subdivision 5, is amended to read: 
 18.35     Subd. 5.  [ENFORCEMENT.] With reason to believe that a 
 18.36  corporation, limited partnership, limited liability company, 
 19.1   limited liability partnership, or pension or investment fund is 
 19.2   violating subdivision 3, the attorney general shall commence an 
 19.3   action in the district court in which any agricultural lands 
 19.4   relative to such violation are situated, or if situated in two 
 19.5   or more counties, in any county in which a substantial part of 
 19.6   the lands are situated.  The attorney general shall file for 
 19.7   record with the county recorder or the registrar of titles of 
 19.8   each county in which any portion of said lands are located a 
 19.9   notice of the pendency of the action as provided in section 
 19.10  557.02.  If the court finds that the lands in question are being 
 19.11  held in violation of subdivision 3, it shall enter an order so 
 19.12  declaring.  The attorney general shall file for record any such 
 19.13  order with the county recorder or the registrar of titles of 
 19.14  each county in which any portion of said lands are located.  
 19.15  Thereafter, the pension or investment fund, limited partnership, 
 19.16  or corporation, limited liability company, or limited liability 
 19.17  partnership owning such land shall have a period of five years 
 19.18  from the date of such order to divest itself of such lands.  The 
 19.19  aforementioned five-year limitation period shall be deemed a 
 19.20  covenant running with the title to the land against any pension 
 19.21  or investment fund, limited partnership, or corporate, limited 
 19.22  liability company, or limited liability partnership grantee or 
 19.23  assignee or the successor of such pension or investment fund, 
 19.24  limited partnership, or corporation, limited liability company, 
 19.25  or limited liability partnership.  Any lands not so divested 
 19.26  within the time prescribed shall be sold at public sale in the 
 19.27  manner prescribed by law for the foreclosure of a mortgage by 
 19.28  action.  In addition, any prospective or threatened violation 
 19.29  may be enjoined by an action brought by the attorney general in 
 19.30  the manner provided by law. 
 19.31     Sec. 7.  Minnesota Statutes 1996, section 500.24, 
 19.32  subdivision 6, is amended to read: 
 19.33     Subd. 6.  [DISPOSAL OF LAND.] (a) A state or federal 
 19.34  agency, limited partnership, or a corporation, limited liability 
 19.35  company, or limited liability partnership may not lease or sell 
 19.36  agricultural land or a farm homestead before offering or making 
 20.1   a good faith effort to offer the land for sale or lease to the 
 20.2   immediately preceding former owner at a price no higher than the 
 20.3   highest price offered by a third party that is acceptable to the 
 20.4   seller or lessor.  The offer must be made on the notice to offer 
 20.5   form under subdivision 7.  The requirements of this subdivision 
 20.6   do not apply to a sale or lease by a corporation that is a 
 20.7   family farm corporation or an authorized farm corporation or to 
 20.8   a sale or lease by the commissioner of agriculture of property 
 20.9   acquired by the state under the family farm security program 
 20.10  under chapter 41.  This subdivision applies only to a sale or 
 20.11  lease when the seller or lessor acquired the property by 
 20.12  enforcing a debt against the agricultural land or farm 
 20.13  homestead, including foreclosure of a mortgage, accepting a deed 
 20.14  in lieu of foreclosure, terminating a contract for deed, or 
 20.15  accepting a deed in lieu of terminating a contract for deed.  
 20.16  Selling or leasing property to a third party at a price is prima 
 20.17  facie evidence that the price is acceptable to the seller or 
 20.18  lessor.  The seller must provide written notice to the 
 20.19  immediately preceding former owner that the agricultural land or 
 20.20  farm homestead will be offered for sale at least 14 days before 
 20.21  the agricultural land or farm homestead is offered for sale.  
 20.22     (b) An immediately preceding former owner is the entity 
 20.23  with record legal title to the agricultural land or farm 
 20.24  homestead before acquisition by the state or federal agency or 
 20.25  corporation except:  if the immediately preceding former owner 
 20.26  is a bankruptcy estate, the debtor in bankruptcy is the 
 20.27  immediately preceding former owner; and if the agricultural land 
 20.28  or farm homestead was acquired by termination of a contract for 
 20.29  deed or deed in lieu of termination of a contract for deed, the 
 20.30  immediately preceding former owner is the purchaser under the 
 20.31  contract for deed.  For purposes of this subdivision, only a 
 20.32  family farm, family farm corporation, or family farm 
 20.33  partnership, family farm limited liability company, or family 
 20.34  farm limited liability partnership can be an immediately 
 20.35  preceding former owner. 
 20.36     (c) An immediately preceding former owner may elect to 
 21.1   purchase or lease the entire property or an agreed to portion of 
 21.2   the property.  If the immediately preceding former owner elects 
 21.3   to purchase or lease a portion of the property, the election 
 21.4   must be reported in writing to the seller or lessor prior to the 
 21.5   time the property is first offered for sale or lease.  If 
 21.6   election is made to purchase or lease a portion of the property, 
 21.7   the portion must be contiguous and compact so that it does not 
 21.8   unreasonably reduce access to or the value of the remaining 
 21.9   property. 
 21.10     (d) For purposes of this subdivision, the term "a price no 
 21.11  higher than the highest price offered by a third party" means 
 21.12  the acceptable cash price offered by a third party or the 
 21.13  acceptable time-price offer made by a third party.  A cash price 
 21.14  offer is one that involves simultaneous transfer of title for 
 21.15  payment of the entire amount of the offer.  If the acceptable 
 21.16  offer made by a third party is a time-price offer, the seller or 
 21.17  lessor must make the same time-price offer or an equivalent cash 
 21.18  offer to the immediately preceding former owner.  An equivalent 
 21.19  cash offer is equal to the total of the payments made over a 
 21.20  period of the time-price offer discounted by yield curve of the 
 21.21  United States treasury notes and bonds of similar maturity on 
 21.22  the first business day of the month in which the offer is 
 21.23  personally delivered or mailed for time periods similar to the 
 21.24  time period covered by the time-price offer, plus 2.0 percent.  
 21.25  A time-price offer is an offer that is financed entirely or 
 21.26  partially by the seller and includes an offer to purchase under 
 21.27  a contract for deed or mortgage.  An equivalent cash offer is 
 21.28  not required to be made if the state participates in an offer to 
 21.29  a third party through the rural finance authority. 
 21.30     (e) This subdivision applies to a seller when the property 
 21.31  is sold and to a lessor each time the property is leased, for 
 21.32  the time period specified in subdivision 3, paragraph (i), after 
 21.33  the agricultural land is acquired except:  
 21.34     (1) an offer to lease to the immediately preceding former 
 21.35  owner is required only until the immediately preceding owner 
 21.36  fails to accept an offer to lease the property or the property 
 22.1   is sold; 
 22.2      (2) an offer to sell to the immediately preceding former 
 22.3   owner is required until the property is sold; and 
 22.4      (3) if the immediately preceding former owner elects to 
 22.5   lease or purchase a portion of the property, this subdivision 
 22.6   does not apply to the seller with regard to the balance of the 
 22.7   property after the election is made under paragraph (c).  
 22.8      (f) The notice of an offer under subdivision 7 that is 
 22.9   personally delivered with a signed receipt or sent by certified 
 22.10  mail with a receipt of mailing to the immediately preceding 
 22.11  former owner's last known address is a good faith offer.  
 22.12     (g) This subdivision does not apply to a sale or lease that 
 22.13  occurs after the seller or lessor has held the property for the 
 22.14  time period specified in subdivision 3, paragraph (i).  
 22.15     (h) For purposes of this subdivision, if the immediately 
 22.16  preceding former owner is a bankruptcy estate the debtor in the 
 22.17  bankruptcy is the immediately preceding owner.  
 22.18     (i) The immediately preceding former owner must exercise 
 22.19  the right to lease all or a portion of the agricultural land or 
 22.20  a homestead located on agricultural land in writing within 15 
 22.21  days after an offer to lease under this subdivision is mailed 
 22.22  with a receipt of mailing or personally delivered.  If election 
 22.23  is made to lease only the homestead or a portion of the 
 22.24  agricultural land, the portion to be leased must be clearly 
 22.25  identified in writing.  The immediately preceding former owner 
 22.26  must exercise the right to buy the agricultural land, a portion 
 22.27  of the agricultural land, or a farm homestead located on 
 22.28  agricultural land, in writing, within 65 days after an offer to 
 22.29  buy under this subdivision is mailed with a receipt of mailing 
 22.30  or is personally delivered.  Within ten days after exercising 
 22.31  the right to lease or buy by accepting the offer, the 
 22.32  immediately preceding owner must fully perform according to the 
 22.33  terms of the offer including paying the amounts due.  A seller 
 22.34  may sell and a lessor may lease the agricultural land or farm 
 22.35  homestead subject to this subdivision to the third party in 
 22.36  accordance with their lease or purchase agreement if: 
 23.1      (1) the immediately preceding former owner does not accept 
 23.2   an offer to lease or buy before the offer terminates; or 
 23.3      (2) the immediately preceding former owner does not perform 
 23.4   the obligations of the offer, including paying the amounts due, 
 23.5   within ten days after accepting the offer. 
 23.6      (j) A certificate indicating whether or not the property 
 23.7   contains agricultural land or a farm homestead that is signed by 
 23.8   the county assessor where the property is located and recorded 
 23.9   in the office of the county recorder or the registrar of titles 
 23.10  where the property is located is prima facie evidence of whether 
 23.11  the property is agricultural land or a farm homestead. 
 23.12     (k) As prima facie evidence that an offer to sell or lease 
 23.13  agricultural land or a farm homestead has terminated, a receipt 
 23.14  of mailing the notice under subdivision 7 and an affidavit, 
 23.15  signed by a person authorized to act on behalf of a state, 
 23.16  federal agency, or corporation selling or leasing the 
 23.17  agricultural land or a farm homestead may be filed in the office 
 23.18  of the county recorder or registrar of titles of the county 
 23.19  where the agricultural land or farm homestead is located.  The 
 23.20  affidavit must state that: 
 23.21     (1) notice of an offer to buy or lease the agricultural 
 23.22  land or farm homestead was provided to the immediately preceding 
 23.23  former owner at a price not higher than the highest price 
 23.24  offered by a third party that is acceptable; 
 23.25     (2) the time during which the immediately preceding former 
 23.26  owner is required to exercise the right to buy or lease the 
 23.27  agricultural land or farm homestead has expired; 
 23.28     (3) the immediately preceding former owner has not 
 23.29  exercised the right to buy or lease the agricultural land or 
 23.30  farm homestead as provided in this subdivision or has accepted 
 23.31  an offer and has not fully performed according to the terms of 
 23.32  the offer; and 
 23.33     (4) the offer to the immediately preceding former owner has 
 23.34  terminated. 
 23.35     (l) The right of an immediately preceding former owner to 
 23.36  receive an offer to lease or purchase agricultural land under 
 24.1   this subdivision or to lease or purchase at a price no higher 
 24.2   than the highest price offered by a third party that is 
 24.3   acceptable to the seller or lessor may be extinguished or 
 24.4   limited by an express statement signed by the immediately 
 24.5   preceding owner that complies with the plain language 
 24.6   requirements of section 325G.31.  The right may not be 
 24.7   extinguished or limited except by: 
 24.8      (1) an express statement in a deed in lieu of foreclosure 
 24.9   of the agricultural land; 
 24.10     (2) an express statement in a deed in lieu of a termination 
 24.11  of a contract for deed for the agricultural land; 
 24.12     (3) an express statement conveying the right to the state 
 24.13  or federal agency or corporation owning the agricultural land 
 24.14  that is required to make an offer under this subdivision; 
 24.15  however, the preceding former owner may rescind the conveyance 
 24.16  by notifying the state or federal agency or corporation in 
 24.17  writing within 20 calendar days after signing the express 
 24.18  statement; 
 24.19     (4) to cure a title defect, an express statement conveying 
 24.20  the right may be made to a person to whom the agricultural land 
 24.21  has been transferred by the state or federal agency or 
 24.22  corporation; or 
 24.23     (5) an express statement conveying the right to a contract 
 24.24  for deed vendee to whom the agricultural land or farm homestead 
 24.25  was sold under a contract for deed by the immediately preceding 
 24.26  former owner if the express statement and the contract for deed 
 24.27  are recorded. 
 24.28     (m) The right of an immediately preceding former owner to 
 24.29  receive an offer to lease or purchase agricultural land under 
 24.30  this subdivision may not be assigned or transferred except as 
 24.31  provided in paragraph (l), but may be inherited.  
 24.32     (n) An immediately preceding former owner, except a former 
 24.33  owner who is actively engaged in farming as defined in 
 24.34  subdivision 2, paragraph (a), and who agrees to remain actively 
 24.35  engaged in farming on a portion of the agricultural land or farm 
 24.36  homestead for at least one year after accepting an offer under 
 25.1   this subdivision, may not sell agricultural land acquired by 
 25.2   accepting an offer under this subdivision if the arrangement of 
 25.3   the sale was negotiated or agreed to prior to the former owner 
 25.4   accepting the offer under this subdivision.  A person who sells 
 25.5   property in violation of this paragraph is liable for damages 
 25.6   plus reasonable attorney fees to a person who is damaged by a 
 25.7   sale in violation of this paragraph.  There is a rebuttable 
 25.8   presumption that a sale by an immediately preceding former owner 
 25.9   is in violation of this paragraph if the sale takes place within 
 25.10  270 days of the former owner accepting the offer under this 
 25.11  subdivision.  This paragraph does not apply to a sale by an 
 25.12  immediately preceding former owner to the owner's spouse, the 
 25.13  owner's parents, the owner's sisters and brothers, the owner's 
 25.14  spouse's sisters and brothers, or the owner's children. 
 25.15     Sec. 8.  Minnesota Statutes 1996, section 500.24, 
 25.16  subdivision 7, is amended to read: 
 25.17     Subd. 7.  [NOTICE OF OFFER.] (a) The state, a federal 
 25.18  agency, limited partnership, or a corporation, limited liability 
 25.19  company, or limited liability partnership subject to subdivision 
 25.20  6 must provide a notice of an offer to sell or lease 
 25.21  agricultural land substantially as follows, after inserting the 
 25.22  appropriate terms within the parentheses: 
 25.23         "NOTICE OF OFFER TO (LEASE, BUY) AGRICULTURAL LAND
 25.24  TO:       (...Immediately preceding former owner...)
 25.25  FROM:     (...The state, federal agency, limited
 25.26            partnership, or corporation, limited
 25.27            liability company, or limited
 25.28            liability partnership subject
 25.29            to subdivision 6...)
 25.30  DATE:     (...date notice is mailed or personally
 25.31            delivered...)
 25.32     (...The state, federal agency, limited partnership, or 
 25.33  corporation, limited liability company, or limited liability 
 25.34  partnership...) HAS ACQUIRED THE AGRICULTURAL LAND DESCRIBED 
 25.35  BELOW AND HAS RECEIVED AN ACCEPTABLE OFFER TO (LEASE, SELL) THE 
 25.36  AGRICULTURAL LAND FROM ANOTHER PARTY.  UNDER MINNESOTA STATUTES, 
 26.1   SECTION 500.24, SUBDIVISION 6, AN OFFER FROM (...the state, 
 26.2   federal agency, limited partnership, or corporation...) MUST BE 
 26.3   MADE TO YOU AT A PRICE NO HIGHER THAN THE HIGHEST OFFER MADE BY 
 26.4   ANOTHER PARTY. 
 26.5      THE AGRICULTURAL LAND BEING OFFERED CONTAINS APPROXIMATELY 
 26.6   (...approximate number of acres...) ACRES AND IS INFORMALLY 
 26.7   DESCRIBED AS FOLLOWS: 
 26.8      (Informal description of the agricultural land being 
 26.9   offered that reasonably describes the land.  This description 
 26.10  does not need to be a legal description.) 
 26.11     (...The state, federal agency, limited partnership, or 
 26.12  corporation, limited liability company, or limited liability 
 26.13  partnership...) OFFERS TO (SELL, LEASE) THE AGRICULTURAL LAND 
 26.14  DESCRIBED ABOVE FOR A CASH PRICE OF $(...cash price or 
 26.15  equivalent cash price for lease and lease period, or cash price 
 26.16  or equivalent cash price for sale of land...), WHICH IS NOT 
 26.17  HIGHER THAN THE PRICE OFFERED BY ANOTHER PARTY.  THE PRICE IS 
 26.18  OFFERED ON THE FOLLOWING TERMS: 
 26.19                (Terms, if any, of acceptable offer)
 26.20     IF YOU WANT TO ACCEPT THIS OFFER YOU MUST NOTIFY (...the 
 26.21  state, federal agency, limited partnership, or corporation, 
 26.22  limited liability company, or limited liability partnership...) 
 26.23  IN WRITING THAT YOU ACCEPT THE OFFER OR SIGN UNDERNEATH THE 
 26.24  FOLLOWING PARAGRAPH AND RETURN A COPY OF THIS NOTICE BY (15 for 
 26.25  a lease, 65 for a sale) DAYS AFTER THIS NOTICE IS PERSONALLY 
 26.26  DELIVERED OR MAILED TO YOU.  THE OFFER IN THIS NOTICE TERMINATES 
 26.27  ON (...date of termination - 15 days for lease and 65 days for 
 26.28  sale after date of mailing or personal delivery...) 
 26.29                        ACCEPTANCE OF OFFER 
 26.30     I ACCEPT THE OFFER TO (BUY, LEASE) THE AGRICULTURAL LAND 
 26.31  DESCRIBED ABOVE AT THE PRICE OFFERED TO ME IN THIS NOTICE.  AS 
 26.32  PART OF ACCEPTING THIS OFFER I WILL PERFORM ACCORDING TO THE 
 26.33  TERMS OF THE OFFER, INCLUDING MAKING PAYMENTS DUE UNDER THE 
 26.34  OFFER, WITHIN TEN DAYS AFTER THE DATE I ACCEPT THIS OFFER.  I 
 26.35  UNDERSTAND THAT NEGOTIATING OR AGREEING TO AN ARRANGEMENT TO 
 26.36  SELL THE AGRICULTURAL LAND TO ANOTHER PERSON PRIOR TO ACCEPTING 
 27.1   THIS OFFER MAY BE A VIOLATION OF LAW AND I MAY BE LIABLE TO A 
 27.2   PERSON DAMAGED BY THE SALE. 
 27.3   
 27.4        .........................................
 27.5        Signature of Former Owner Accepting Offer 
 27.6   
 27.7        .........................................
 27.8        Date" 
 27.9                           IMPORTANT NOTICE
 27.10     ANY ACTION FOR THE RECOVERY OF THE AGRICULTURAL LAND 
 27.11  DESCRIBED ABOVE OR ANY ACTION FOR DAMAGES, EXCEPT FOR DAMAGES 
 27.12  FOR FRAUD, REGARDING THIS OFFER MUST BE COMMENCED BY A LAWSUIT 
 27.13  BEFORE THE EXPIRATION OF THREE YEARS AFTER THIS LAND IS SOLD TO 
 27.14  ANOTHER PARTY.  UPON FILING A LAWSUIT, YOU MUST ALSO FILE A 
 27.15  NOTICE OF LIS PENDENS WITH THE COUNTY RECORDER OR REGISTRAR OF 
 27.16  TITLES IN THE COUNTY WHERE THE LAND IS LOCATED. 
 27.17     (b) For an offer to sell, a copy of the purchase agreement 
 27.18  containing the price and terms of the highest offer made by a 
 27.19  third party that is acceptable to the seller and a signed 
 27.20  affidavit by the seller affirming that the purchase agreement is 
 27.21  true, accurate, and made in good faith must be included with the 
 27.22  notice under this subdivision.  At the seller's discretion, 
 27.23  reference to the third party's identity may be deleted from the 
 27.24  copy of the purchase agreement. 
 27.25     (c) For an offer to lease, a copy of the lease containing 
 27.26  the price and terms of the highest offer made by a third party 
 27.27  that is acceptable to the lessor and a signed affidavit by the 
 27.28  lessor affirming that the lease is true, accurate, and made in 
 27.29  good faith must be included with the notice under this 
 27.30  subdivision.  At the lessor's discretion, reference to the third 
 27.31  party's identity may be deleted from the copy of the lease 
 27.32  agreement. 
 27.33     (d) The affidavit under paragraphs (b) and (c) is subject 
 27.34  to section 609.48.