1.1                          A bill for an act 
  1.2             relating to agriculture; requiring animal waste 
  1.3             technician licenses; creating and funding an animal 
  1.4             feedlot cleanup fund; limiting issuance of certain 
  1.5             animal feedlot permits; requiring animal feedlot 
  1.6             inventory and review; providing for assistance in 
  1.7             adoption, review, and update of feedlot ordinances; 
  1.8             requiring a generic environmental impact statement on 
  1.9             feedlots; requiring an audit; providing for feedlot 
  1.10            compliance grants; increasing the value-added 
  1.11            agricultural product revolving fund; expanding the 
  1.12            paratuberculosis control program; providing for 
  1.13            certain alternative and sustainable hog production 
  1.14            facilities; appropriating money; amending Minnesota 
  1.15            Statutes 1996, section 116.07, by adding a 
  1.16            subdivision; proposing coding for new law in Minnesota 
  1.17            Statutes, chapter 116; proposing coding for new law as 
  1.18            Minnesota Statutes, chapter 18G. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20     Section 1.  [18G.01] [PURPOSE.] 
  1.21     The purpose of this chapter is to minimize the 
  1.22  environmental risks associated with improper handling, 
  1.23  management, or application of animal wastes generated by large 
  1.24  animal feedlots.  
  1.25     Sec. 2.  [18G.02] [TRAINING AND LICENSING FOR ANIMAL WASTE 
  1.26  TECHNICIANS.] 
  1.27     After March 1, 2000, a person who manages or applies animal 
  1.28  wastes must hold a valid commercial or noncommercial animal 
  1.29  waste technician license.  This section and sections 18G.03 and 
  1.30  18G.04 do not apply to a person who manages and applies: 
  1.31     (1) only animal wastes generated by animals owned by that 
  1.32  person on property owned or leased by that person; or 
  2.1      (2) annually an amount of animal wastes that would 
  2.2   otherwise be suitable for application to one acre or less of 
  2.3   crop land.  
  2.4      The commissioner of agriculture, in cooperation with the 
  2.5   Minnesota extension service and appropriate educational 
  2.6   institutions, shall establish and implement a program for 
  2.7   training and licensing commercial and noncommercial animal waste 
  2.8   technicians.  
  2.9      Sec. 3.  [18G.03] [COMMERCIAL ANIMAL WASTE TECHNICIAN.] 
  2.10     Subdivision 1.  [REQUIREMENT.] (a) A person may not manage 
  2.11  or apply animal wastes for hire without a valid commercial 
  2.12  animal waste technician license.  
  2.13     (b) A commercial animal waste technician licensee must have 
  2.14  a valid license identification card when managing or applying 
  2.15  animal wastes for hire and must display it upon demand by an 
  2.16  authorized representative of the commissioner or a law 
  2.17  enforcement officer.  The commissioner shall prescribe the 
  2.18  information required on the license identification card.  
  2.19     Subd. 2.  [RESPONSIBILITY.] A person required to be 
  2.20  licensed under this section who performs animal waste management 
  2.21  or application for hire or who employs a licensed technician to 
  2.22  perform animal waste management or application for compensation 
  2.23  is responsible for proper management or application of the 
  2.24  animal wastes. 
  2.25     Subd. 3.  [LICENSE.] A commercial animal waste technician 
  2.26  license: 
  2.27     (1) is valid for three years and expires on December 31 of 
  2.28  the third year for which it is issued, unless suspended or 
  2.29  revoked before that date; 
  2.30     (2) is not transferable to another person; and 
  2.31     (3) must be prominently displayed to the public in the 
  2.32  commercial animal waste technician's place of business. 
  2.33     Subd. 4.  [APPLICATION.] A person must apply to the 
  2.34  commissioner for a commercial animal waste technician license on 
  2.35  forms and in the manner required by the commissioner and must 
  2.36  include the application fee.  The commissioner shall prescribe 
  3.1   and administer an examination or equivalent measure to determine 
  3.2   if the applicant is eligible for the commercial animal waste 
  3.3   technician license. 
  3.4      Subd. 5.  [RENEWAL APPLICATION.] A person must apply to the 
  3.5   commissioner of agriculture to renew a commercial animal waste 
  3.6   technician license and must include the application fee.  The 
  3.7   commissioner may renew a commercial animal waste technician 
  3.8   license, subject to reexamination, attendance at workshops 
  3.9   approved by the commissioner, or other requirements imposed by 
  3.10  the commissioner to provide the animal waste technician with 
  3.11  information regarding changing technology and to help ensure a 
  3.12  continuing level of competence and ability to manage and apply 
  3.13  animal wastes properly.  The applicant may renew a commercial 
  3.14  animal waste technician license within 12 months after 
  3.15  expiration of the license without having to meet initial testing 
  3.16  requirements.  The commissioner may require additional 
  3.17  demonstration of animal waste technician qualification if a 
  3.18  person has had a license suspended or revoked or has had a 
  3.19  history of violations of this section. 
  3.20     Subd. 6.  [FINANCIAL RESPONSIBILITY.] (a) A commercial 
  3.21  animal waste technician license may not be issued unless the 
  3.22  applicant furnishes proof of financial responsibility.  The 
  3.23  financial responsibility may be demonstrated by (1) proof of net 
  3.24  assets equal to or greater than $50,000, or (2) a performance 
  3.25  bond or insurance of the kind and in an amount determined by the 
  3.26  commissioner of agriculture. 
  3.27     (b) The bond or insurance must cover a period of time at 
  3.28  least equal to the term of the applicant's license.  The 
  3.29  commissioner shall immediately suspend the license of a person 
  3.30  who fails to maintain the required bond or insurance.  
  3.31     (c) An employee of a licensed person is not required to 
  3.32  maintain an insurance policy or bond during the time the 
  3.33  employer is maintaining the required insurance or bond. 
  3.34     (d) Applications for reinstatement of a license suspended 
  3.35  under paragraph (b) must be accompanied by proof of satisfaction 
  3.36  of judgments previously rendered.  
  4.1      Subd. 7.  [APPLICATION FEE.] (a) A person initially 
  4.2   applying for or renewing a commercial animal waste technician 
  4.3   license must pay a nonrefundable application fee of $50.  
  4.4      (b) Fees collected under this subdivision must be deposited 
  4.5   in the animal waste liability account.  
  4.6      Sec. 4.  [18G.04] [NONCOMMERCIAL ANIMAL WASTE TECHNICIAN.] 
  4.7      Subdivision 1.  [REQUIREMENT.] (a) A person who does not 
  4.8   hold a valid commercial animal waste technician license may not 
  4.9   manage or apply animal wastes without a valid noncommercial 
  4.10  animal waste technician license. 
  4.11     (b) A noncommercial animal waste technician licensee must, 
  4.12  within 24 hours of the demand, display a valid animal waste 
  4.13  technician license to an authorized representative of the 
  4.14  commissioner or a law enforcement officer.  The commissioner 
  4.15  shall prescribe the information required on the license 
  4.16  identification card. 
  4.17     Subd. 2.  [RESPONSIBILITY.] A person required to be 
  4.18  licensed under this section is responsible for proper management 
  4.19  or application of the animal wastes. 
  4.20     Subd. 3.  [LICENSE.] A noncommercial animal waste 
  4.21  technician license: 
  4.22     (1) is valid for three years and expires on December 31 of 
  4.23  the third year for which it is issued, unless suspended or 
  4.24  revoked before that date; and 
  4.25     (2) is not transferable to another person. 
  4.26     Subd. 4.  [APPLICATION.] A person must apply to the 
  4.27  commissioner for a noncommercial animal waste technician license 
  4.28  on forms and in the manner required by the commissioner and must 
  4.29  include the application fee.  The commissioner shall prescribe 
  4.30  and administer an examination or equivalent measure to determine 
  4.31  if the applicant is eligible for the noncommercial animal waste 
  4.32  technician license. 
  4.33     Subd. 5.  [RENEWAL APPLICATION.] A person must apply to the 
  4.34  commissioner to renew a noncommercial animal waste technician 
  4.35  license and must include the application fee.  The commissioner 
  4.36  may renew a noncommercial animal waste technician license 
  5.1   subject to reexamination, attendance at workshops approved by 
  5.2   the commissioner, or other requirements imposed by the 
  5.3   commissioner to provide the animal waste technician with 
  5.4   information regarding changing technology and to help ensure a 
  5.5   continuing level of competence and ability to manage and apply 
  5.6   animal wastes safely and properly.  The applicant may renew a 
  5.7   noncommercial animal waste technician license within 12 months 
  5.8   after expiration of the license without having to meet initial 
  5.9   testing requirements.  The commissioner may require additional 
  5.10  demonstration of animal waste technician qualification if a 
  5.11  person has had a license suspended or revoked or has had a 
  5.12  history of violations of this section.  
  5.13     Subd. 6.  [APPLICATION FEE.] (a) A person initially 
  5.14  applying for or renewing a noncommercial animal waste technician 
  5.15  license must pay a nonrefundable application fee of $25. 
  5.16     (b) Fees collected under this subdivision must be deposited 
  5.17  in the animal waste liability account. 
  5.18     Sec. 5.  Minnesota Statutes 1996, section 116.07, is 
  5.19  amended by adding a subdivision to read: 
  5.20     Subd. 7b.  [PERMIT REQUIREMENTS.] (a) Neither the pollution 
  5.21  control agency nor a county board may issue a permit to 
  5.22  construct or expand a feedlot if: 
  5.23     (1) the feedlot would operate with a clay, earthen, or 
  5.24  plastic lined animal waste lagoon; or 
  5.25     (2) the feedlot has a design capacity of over 1,000 animal 
  5.26  units, unless the permit issued is an Individual National 
  5.27  Pollutant Discharge Elimination System (NPDES) permit as 
  5.28  required under the federal Clean Water Act. 
  5.29     (b) Paragraph (a) does not prohibit the issuance of a 
  5.30  permit for the construction of a clay, earthen, or plastic lined 
  5.31  animal waste lagoon if the feedlot has a design capacity of 750 
  5.32  animal units or less and is part of the animal waste management 
  5.33  facility for a dairy or beef cattle operation.  The animal unit 
  5.34  capacity under this paragraph must be calculated with regard 
  5.35  only to the population of mature bovine animals and must 
  5.36  disregard animals that are (1) replacement dairy stock, or (2) 
  6.1   steers, or slaughter heifers under the weight of 800 pounds. 
  6.2      (c) Existing animal feedlots having a design capacity of 
  6.3   1,000 animal units or more must be brought into compliance with 
  6.4   the requirement for a General National Pollutant Discharge 
  6.5   Elimination System (NPDES) permit as required under the federal 
  6.6   Clean Water Act. 
  6.7      Sec. 6.  [116.0711] [ANIMAL WASTE LIABILITY ACCOUNT; 
  6.8   SURCHARGE.] 
  6.9      Subdivision 1.  [ESTABLISHMENT OF ACCOUNT.] An animal waste 
  6.10  liability account is established in the environmental fund.  
  6.11  Money in the account is appropriated to the commissioner for 
  6.12  containment and cleanup of animal waste. 
  6.13     Subd. 2.  [FEEDLOT PERMIT SURCHARGE.] A surcharge of $1 per 
  6.14  animal unit of design capacity for feedlots having a design 
  6.15  capacity of 750 animal units or more must be paid on feedlot 
  6.16  construction permits issued or renewed by the pollution control 
  6.17  agency or a county board.  Money collected under this section 
  6.18  must be deposited in the state treasury and credited to the 
  6.19  animal waste liability account.  
  6.20     Sec. 7.  [116.0712] [ANIMAL WASTE CONTROL AND SPILL 
  6.21  INVENTORY AND REPORTING; CONTINGENCY PLAN.] 
  6.22     The pollution control agency, in cooperation with the 
  6.23  commissioner of agriculture and county officials, shall 
  6.24  investigate the problems of proper control of animal wastes 
  6.25  generated by animal feedlots and conduct an inventory of animal 
  6.26  waste facilities and storage sites and the needs relative to the 
  6.27  management, transportation, and application of animal wastes and 
  6.28  shall develop an informational reporting system of animal waste 
  6.29  quantities generated, applied, and disposed of in the state.  
  6.30  The agency shall also develop a statewide animal waste 
  6.31  contingency plan including containment, closure, and cleanup 
  6.32  measures. 
  6.33     Sec. 8.  [116.0714] [DENIAL OF PERMIT APPLICATIONS.] 
  6.34     (a) The commissioner may reject an application for a permit 
  6.35  filed with the commissioner upon making a specific finding that: 
  6.36     (1) the applicant is unsuited or unqualified to perform the 
  7.1   obligations of a permit holder based upon a finding that the 
  7.2   applicant or any officer, director, partner, or resident general 
  7.3   manager of the facility for which application has been made: 
  7.4      (i) has misrepresented a material fact in applying for a 
  7.5   permit; 
  7.6      (ii) has violated environmental laws of any state or the 
  7.7   United States which have caused significant and material 
  7.8   environmental damage; 
  7.9      (iii) has had any permit revoked under the environmental 
  7.10  laws of any state or the United States; or 
  7.11     (iv) has otherwise demonstrated through previous actions 
  7.12  that the applicant lacks competency to reliably carry out the 
  7.13  obligations imposed by law upon the permit holder; or 
  7.14     (2) the application substantially duplicates an application 
  7.15  by the same applicant denied within the past five years, which 
  7.16  denial has not been reversed by a court of competent 
  7.17  jurisdiction.  Nothing in this section prohibits an applicant 
  7.18  from submitting a new application for a permit previously denied 
  7.19  if the new application represents a good faith attempt by the 
  7.20  applicant to correct the deficiencies that served as the basis 
  7.21  for the denial in the original application.  
  7.22     (b) All applications filed with the commissioner must 
  7.23  include a certification, sworn to under oath and signed by the 
  7.24  applicant, that the applicant is not disqualified by reason of 
  7.25  this section from obtaining a permit.  In the absence of 
  7.26  evidence to the contrary, that certification constitutes a prima 
  7.27  facie showing of the suitability and qualification of the 
  7.28  applicant.  If at any point in the application review, 
  7.29  recommendation, or hearing process, the commissioner finds the 
  7.30  applicant has made any material misrepresentation of fact in 
  7.31  regard to this certification, consideration of the application 
  7.32  may be suspended and the application may be rejected under this 
  7.33  section. 
  7.34     (c) Rejection of an application under this section 
  7.35  constitutes final agency action upon that application and may be 
  7.36  appealed to a district court as provided for in statute. 
  8.1      Sec. 9.  [INVENTORY OF FEEDLOTS.] 
  8.2      Subdivision 1.  [SCOPE; COMMISSIONER OF AGRICULTURE TO 
  8.3   COORDINATE.] The commissioner of agriculture, in cooperation 
  8.4   with the commissioner of the pollution control agency, shall 
  8.5   organize and coordinate a comprehensive, county-by-county 
  8.6   inventory of existing animal feedlots as defined in Minnesota 
  8.7   Rules, part 7020.0300, subpart 3.  The pollution control agency 
  8.8   shall design the inventory, design the methodology for 
  8.9   conducting the inventory, and determine the requirements for 
  8.10  county feedlot programs to conduct the inventory within their 
  8.11  jurisdiction.  The agency shall also provide training and 
  8.12  oversight to ensure that state guidelines and requirements are 
  8.13  met.  The inventory must determine for each animal feedlot: 
  8.14     (1) the type of livestock; 
  8.15     (2) the design capacity in animal units; 
  8.16     (3) the manure management system employed; 
  8.17     (4) the state of compliance with the federal Clean Water 
  8.18  Act, pollution control agency, and county permit conditions and 
  8.19  applicable laws, rules, and ordinances; and 
  8.20     (5) the ownership and business organization having 
  8.21  controlling interest in the livestock and the feedlot. 
  8.22     Subd. 2.  [GRANTS AND TECHNICAL ASSISTANCE TO COUNTIES.] 
  8.23  From the appropriation in section 13, the commissioner of 
  8.24  agriculture, in cooperation with the commissioner of the 
  8.25  pollution control agency, shall make grants to counties for the 
  8.26  full costs of conducting and reporting the feedlot inventory.  
  8.27  The commissioner may also provide to counties support and 
  8.28  technical assistance relating to the inventory. 
  8.29     Subd. 3.  [REPORT.] Not later than March 1, 1999, the 
  8.30  commissioner of agriculture shall report to the legislature the 
  8.31  findings of the animal feedlot inventory. 
  8.32     Sec. 10.  [ADOPTION, REVIEW, AND UPDATE OF FEEDLOT 
  8.33  ORDINANCES.] 
  8.34     (a) The commissioners of the pollution control agency and 
  8.35  agriculture shall provide technical assistance to counties for 
  8.36  the development and adoption of new or amended ordinances 
  9.1   relating to animal feedlots. 
  9.2      (b) The attorney general shall provide legal assistance to 
  9.3   counties that elect to adopt, review, or modify ordinances 
  9.4   relating to animal feedlots.  
  9.5      (c) The commissioner of agriculture shall provide for 
  9.6   transfer of appropriated money to the attorney general and the 
  9.7   pollution control agency for costs of the legal or technical 
  9.8   assistance provided under this subdivision. 
  9.9      A county may adopt by ordinance standards for animal 
  9.10  feedlots that are more stringent than standards in pollution 
  9.11  control agency rule. 
  9.12     Sec. 11.  [COUNTIES AND TOWNS TO REPORT.] 
  9.13     (a) Not later than August 1, 1998, each county and each 
  9.14  town that has adopted ordinances related to animal feedlots 
  9.15  shall supply copies of the ordinances to the commissioner of 
  9.16  agriculture.  A county or town that adopts a new or amended 
  9.17  ordinance related to animal feedlots shall report the new or 
  9.18  amended ordinance to the commissioner within 60 days after the 
  9.19  adoption. 
  9.20     (b) The reporting requirements of paragraph (a) expire 
  9.21  after June 30, 2001. 
  9.22     Sec. 12.  [LEGISLATIVE AUDITOR TO CONDUCT PROGRAM AUDIT.] 
  9.23     Not later than April 1, 1999, the legislative auditor shall 
  9.24  complete and report to the legislature on a program audit of 
  9.25  pollution control agency policies, procedures, and activities 
  9.26  related to animal feedlots.  The audit must consider, among 
  9.27  other issues, pollution control agency activities concerning: 
  9.28     (1) monitoring of odors and hydrogen sulfide levels at 
  9.29  various distances from animal feedlot manure lagoons; 
  9.30     (2) issuance of national pollutant discharge elimination 
  9.31  system (NPDES) permits as that duty is delegated under the 
  9.32  federal Clean Water Act; and 
  9.33     (3) oversight of feedlot rule enforcement in counties which 
  9.34  have elected to manage and enforce animal feedlot permitting 
  9.35  authority. 
  9.36     Sec. 13.  [APPROPRIATION; INVENTORY AND REVIEW; TECHNICAL 
 10.1   AND LEGAL ASSISTANCE.] 
 10.2      $....... is appropriated from the general fund to the 
 10.3   commissioner of agriculture for the purposes of sections 9 and 
 10.4   10 for fiscal year 1999. 
 10.5      Sec. 14.  [APPROPRIATION; GENERIC ENVIRONMENTAL IMPACT 
 10.6   STATEMENT.] 
 10.7      $1,200,000 is appropriated in fiscal year 1999 from the 
 10.8   general fund to the pollution control agency for the development 
 10.9   of a generic environmental impact statement for animal 
 10.10  feedlots.  The pollution control agency shall carry out this 
 10.11  effort in cooperation with the environmental quality board, the 
 10.12  department of agriculture, and the department of health.  The 
 10.13  pollution control agency may transfer portions of the 
 10.14  appropriation to the cooperating agencies.  This appropriation 
 10.15  remains available until June 30, 2000. 
 10.16     Sec. 15.  [APPROPRIATION; FEEDLOT COMPLIANCE GRANTS AND 
 10.17  LOANS.] 
 10.18     (a) $12,000,000 is appropriated from the general fund to 
 10.19  the commissioner of agriculture for feedlot compliance grants 
 10.20  and loans. 
 10.21     (b) Of the appropriation in paragraph (a), $6,000,000 is 
 10.22  for grants of up to 75 percent of the direct cost of upgrading 
 10.23  existing feedlots into compliance with state and local feedlot 
 10.24  rules.  To be eligible for a grant under this section the 
 10.25  feedlot: 
 10.26     (1) must have been identified in the county-by-county 
 10.27  inventory of existing feedlots conducted under section 9; 
 10.28     (2) must be out of compliance with feedlot rules; 
 10.29     (3) must have a design capacity of 500 animal units or less 
 10.30  prior to the compliance upgrade; and 
 10.31     (4) must have a final design capacity of 500 animal units 
 10.32  or less after the compliance upgrade. 
 10.33     (c) Of the appropriation in paragraph (a), $6,000,000 is 
 10.34  for loans for feedlot compliance upgrades under the agricultural 
 10.35  best management practices loan program in Minnesota Statutes, 
 10.36  section 17.117. 
 11.1      (d) The appropriations in this section are available until 
 11.2   June 30, 1999. 
 11.3      Sec. 16.  [APPROPRIATION; VALUE-ADDED AGRICULTURAL PRODUCT 
 11.4   REVOLVING FUND.] 
 11.5      $250,000 is appropriated from the general fund to the 
 11.6   value-added agricultural product revolving fund under Minnesota 
 11.7   Statutes, section 41B.046. 
 11.8      Sec. 17.  [APPROPRIATIONS; PARATUBERCULOSIS.] 
 11.9      $40,000 in fiscal year 1998 and $160,000 in fiscal year 
 11.10  1999 is appropriated from the general fund to the board of 
 11.11  animal health to expand the program for the control of 
 11.12  paratuberculosis ("Johne's disease") in domestic bovine herds.  
 11.13  These appropriations are in addition to the appropriations for 
 11.14  the same purposes in Laws 1997, chapter 216, section 8. 
 11.15     Sec. 18.  [APPROPRIATION; UNIVERSITY OF MINNESOTA.] 
 11.16     $800,000 is appropriated from the general fund to the 
 11.17  University of Minnesota for alternative and sustainable hog 
 11.18  production facilities on the Morris campus.  This appropriation 
 11.19  is available until June 30, 1999.