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