1.1                          A bill for an act 
  1.2             relating to agriculture; providing funding for the 
  1.3             department of agriculture, the board of animal health, 
  1.4             the Minnesota horticultural society, and the 
  1.5             agricultural utilization research institute; changing 
  1.6             certain fees and charges; creating, extending, and 
  1.7             expanding certain programs; establishing, changing, 
  1.8             and clarifying terms and procedures; refunding certain 
  1.9             fines; providing a civil penalty; appropriating money; 
  1.10            amending Minnesota Statutes 2000, sections 17.102, 
  1.11            subdivision 3; 17.1025; 17.117; 17.85; 18B.065, 
  1.12            subdivision 5; 18E.04, subdivisions 2, 4, 5; 28A.04, 
  1.13            subdivision 1; 32.394, subdivision 8e; 38.02, 
  1.14            subdivision 1; 41A.09, subdivision 2a; 103B.3369, 
  1.15            subdivision 5; 116.07, subdivision 7; 116O.09, 
  1.16            subdivision 1a; 169.871, subdivision 1; 169.872, 
  1.17            subdivision 1; proposing coding for new law in 
  1.18            Minnesota Statutes, chapters 17; 41A; repealing 
  1.19            Minnesota Statutes 2000, section 31.11, subdivision 2. 
  1.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.21  Section 1.  [AGRICULTURE APPROPRIATIONS.] 
  1.22     The sums shown in the columns marked "APPROPRIATIONS" are 
  1.23  appropriated from the general fund, or another named fund, to 
  1.24  the agencies and for the purposes specified in this act, to be 
  1.25  available for the fiscal years indicated for each purpose.  The 
  1.26  figures "2002" and "2003," where used in this act, mean that the 
  1.27  appropriation or appropriations listed under them are available 
  1.28  for the year ending June 30, 2002, or June 30, 2003, 
  1.29  respectively.  The term "the first year" means the year ending 
  1.30  June 30, 2002, and the term "the second year" means the year 
  1.31  ending June 30, 2003. 
  1.32                          SUMMARY BY FUND
  2.1                            2002           2003          TOTAL
  2.2   General               $ 33,108,000   $ 34,344,000  $ 67,452,000
  2.3   Environmental              347,000        353,000       700,000
  2.4   TOTAL                 $ 33,455,000   $ 34,697,000  $ 68,152,000
  2.5   Sec. 2.  COMMISSIONER OF AGRICULTURE 
  2.6   Subdivision 1.  Total 
  2.7   Appropriation                         26,570,000     27,680,000
  2.8                 Summary by Fund
  2.9   General              26,223,000    27,327,000
  2.10  Environmental           347,000       353,000
  2.11  Subd. 2.  Protection Service          13,028,000     13,277,000
  2.12                Summary by Fund
  2.13  General              12,681,000    12,924,000
  2.14  Environmental           347,000       353,000
  2.15  [DAIRY DEVELOPMENT AND PROFITABILITY 
  2.16  ENHANCEMENT PROGRAM.] (a) $1,702,000 
  2.17  the first year and $1,702,000 the 
  2.18  second year are for grants to continue 
  2.19  the dairy development and profitability 
  2.20  enhancement program under Laws 1997, 
  2.21  chapter 216, section 7, subdivision 2, 
  2.22  and to expand the program to include 
  2.23  additional dairy business planning and 
  2.24  modernization activities.  The base for 
  2.25  fiscal year 2004 shall be $1,952,000.  
  2.26  Grants from this appropriation for the 
  2.27  dairy development and profitability 
  2.28  enhancement programs (formerly known as 
  2.29  the "dairy diagnostics program") must 
  2.30  require periodic reports to the 
  2.31  commissioner on the aggregate changes 
  2.32  in producer financial stability, 
  2.33  productivity, product quality, animal 
  2.34  health, environmental protection, and 
  2.35  other performance measures attributable 
  2.36  to the program.  Information reported 
  2.37  to the commissioner must be sufficient 
  2.38  to establish regional and statewide 
  2.39  performance benchmarks for the dairy 
  2.40  industry. 
  2.41  (b) In designing and implementing the 
  2.42  dairy development and profitability 
  2.43  enhancement program the commissioner 
  2.44  must consult with the dairy leaders 
  2.45  roundtable, appropriate producer and 
  2.46  processor groups, the Minnesota state 
  2.47  colleges and universities system, the 
  2.48  Minnesota extension service, farm 
  2.49  credit services, and other agricultural 
  2.50  lending institutions. 
  2.51  (c) Of the appropriation in paragraph 
  2.52  (a), $1,452,000 the first year and 
  2.53  $1,408,000 the second year are for the 
  2.54  activities of dairy development and 
  2.55  profitability enhancement teams.  The 
  2.56  commissioner must make grants, under 
  3.1   contract, to regional or statewide 
  3.2   organizations qualified to manage the 
  3.3   several components of the program.  
  3.4   Each regional or statewide organization 
  3.5   must designate a coordinator 
  3.6   responsible for overseeing the program 
  3.7   and making required reports to the 
  3.8   commissioner.  Dairy development and 
  3.9   profitability enhancement teams are 
  3.10  encouraged to engage in activities 
  3.11  including, but not limited to, 
  3.12  comprehensive financial analysis, risk 
  3.13  management education, enhanced milk 
  3.14  marketing tools and technologies, 
  3.15  five-year business plans, and design 
  3.16  and engineering costs.  Up to 40 
  3.17  percent of the appropriation under this 
  3.18  paragraph may be used to provide 
  3.19  producers with technical and 
  3.20  environmental compliance support 
  3.21  services required to implement dairy 
  3.22  environmental quality assurance 
  3.23  practices.  A producer is eligible for 
  3.24  support under any program under 
  3.25  paragraphs (a) to (e) for no more than 
  3.26  three consecutive calendar years.  
  3.27  Grants to producers must not be used 
  3.28  for capital improvements or for the 
  3.29  start up of a new dairy enterprise. 
  3.30  (d) Of the appropriation in paragraph 
  3.31  (a), up to $544,000 during the biennium 
  3.32  may be used as dollar-for-dollar 
  3.33  matching grants to producers for 
  3.34  comprehensive five-year dairy 
  3.35  development plans.  It is legislative 
  3.36  intent that $500,000 each fiscal year 
  3.37  of funding from future base 
  3.38  appropriations are for the activities 
  3.39  of this paragraph.  
  3.40  (e) The regional and statewide 
  3.41  organizations that deliver the dairy 
  3.42  development and profitability 
  3.43  enhancement program must provide 
  3.44  required reports to the commissioner in 
  3.45  a format that maintains the 
  3.46  confidentiality of business information 
  3.47  related to any single dairy producer. 
  3.48  [DAIRY SERVICES ACCOUNT.] $306,000 the 
  3.49  first year and $429,000 the second year 
  3.50  is one-time supplemental funding for 
  3.51  the dairy services account. 
  3.52  [FERTILIZER INSPECTION ACCOUNT.] 
  3.53  $155,000 the first year and $253,000 
  3.54  the second year is one-time 
  3.55  supplemental funding for the fertilizer 
  3.56  inspection account. 
  3.57  [FOOD HANDLER PLAN REVIEW ACCOUNT.] 
  3.58  $12,000 the first year and $12,000 the 
  3.59  second year is one-time supplemental 
  3.60  funding for the food handler plan 
  3.61  review account. 
  3.62  [COMMERCIAL CANNERIES ACCOUNT.] $22,000 
  3.63  the first year and $25,000 the second 
  3.64  year is one-time supplemental funding 
  3.65  for the commercial canneries account. 
  4.1   [LABORATORY SERVICES ACCOUNT.] $19,000 
  4.2   in the second year is one-time 
  4.3   supplemental funding for the laboratory 
  4.4   services account. 
  4.5   [POTATO DISEASE RESEARCH.] $200,000 the 
  4.6   first year and $200,000 the second year 
  4.7   are for grants to the University of 
  4.8   Minnesota for additional research on 
  4.9   potato diseases.  This appropriation is 
  4.10  for research in addition to ongoing 
  4.11  potato disease research programs and 
  4.12  requires a dollar-for-dollar match from 
  4.13  nonstate sources.  Not later than March 
  4.14  1, 2004, the commissioner shall provide 
  4.15  a report on the grant and research to 
  4.16  the committees of the senate and house 
  4.17  of representatives having jurisdiction 
  4.18  over agricultural policy and finance 
  4.19  issues.  This is a one-time 
  4.20  appropriation.  Any unencumbered 
  4.21  balance does not cancel at the end of 
  4.22  the first year and is available for 
  4.23  grants in the second year. 
  4.24  [VOLUNTARY CLEANUP.] $347,000 the first 
  4.25  year and $353,000 the second year are 
  4.26  from the environmental fund for 
  4.27  administrative funding for the 
  4.28  voluntary cleanup program.  
  4.29  Subd. 3.  Agriculture Marketing  
  4.30  and Development                        8,370,000      9,496,000
  4.31  [AGRICULTURAL TRADE MARKETING.] 
  4.32  $162,000 the first year and $163,000 
  4.33  the second year are to employ and 
  4.34  support, or contract for the services 
  4.35  of, an agricultural trade specialist.  
  4.36  The trade specialist must demonstrate 
  4.37  thorough knowledge of Minnesota 
  4.38  agricultural producers and products, 
  4.39  and opportunities for developing or 
  4.40  expanding both broad and niche 
  4.41  agricultural product markets nationally 
  4.42  and internationally.  The trade 
  4.43  specialist must coordinate efforts with 
  4.44  market development and trade experts of 
  4.45  the World Trade Conference Center and 
  4.46  other public and private Minnesota 
  4.47  entities involved in marketing 
  4.48  Minnesota products.  To the extent 
  4.49  practicable, the trade specialist must 
  4.50  provide specific assistance to small 
  4.51  agricultural producers and producers 
  4.52  that would benefit from the development 
  4.53  of international markets. 
  4.54  [COOPERATIVE SHIPPERS' ASSOCIATION.] (a)
  4.55  $100,000 in the biennium is for grants 
  4.56  or direct assistance to Minnesota 
  4.57  agricultural producers and processors 
  4.58  in forming a not-for-profit corporation 
  4.59  or a member cooperative shippers' 
  4.60  association.  The purpose of the 
  4.61  shippers' association is to facilitate 
  4.62  agricultural marketing through the 
  4.63  efficient and economical movement of 
  4.64  products from Minnesota origins to 
  4.65  their destinations.  Products may 
  4.66  include agricultural commodities and 
  5.1   processed and manufactured agricultural 
  5.2   products.  The shippers' association 
  5.3   shall also assist small and 
  5.4   medium-sized producers by providing 
  5.5   services that increase negotiating 
  5.6   power and provide quality 
  5.7   transportation services at a lower cost 
  5.8   than is available to an individual 
  5.9   shipper. 
  5.10  (b) The commissioner may award grants 
  5.11  to one or more qualifying producer 
  5.12  shippers' associations that contract to 
  5.13  enter into collaborative agreements 
  5.14  with the departments of agriculture, 
  5.15  trade and economic development, and 
  5.16  transportation; farm organizations; 
  5.17  processors and handlers of Minnesota 
  5.18  agricultural products; and other 
  5.19  appropriate public and private entities 
  5.20  knowledgeable in the logistical and 
  5.21  financial issues involved in moving 
  5.22  agricultural products to market.  Along 
  5.23  with other services, an eligible grant 
  5.24  recipient must agree to provide or 
  5.25  arrange for identity-preserved, 
  5.26  single-source billing and tracking 
  5.27  transportation services from 
  5.28  agricultural producers or processors to 
  5.29  destination customers; freight 
  5.30  forwarding; negotiations for volume 
  5.31  contracts; banking and insurance 
  5.32  services; government inspection fee and 
  5.33  documentation services; intermodal 
  5.34  transportation services using sealed 
  5.35  containers; and liaison services with 
  5.36  the United States Department of 
  5.37  Agriculture and the Foreign 
  5.38  Agricultural Service for international 
  5.39  trade and export programs. 
  5.40  [FEEDLOT PERMIT SPECIALISTS.] $150,000 
  5.41  the first year and $150,000 the second 
  5.42  year are for the feedlot permit 
  5.43  specialist program.  The base in fiscal 
  5.44  year 2004 shall be $400,000.  
  5.45  [FEEDLOT ENVIRONMENTAL COMPLIANCE 
  5.46  GRANTS.] $1,685,000 the first year and 
  5.47  $1,750,000 the second year are for 
  5.48  grants to feedlot operators for 
  5.49  upgrading existing, out-of-compliance 
  5.50  animal feedlots with a capacity under 
  5.51  500 animal units.  Each $3 of state 
  5.52  cost-share grant money must be matched 
  5.53  by $1, and the maximum amount of a 
  5.54  grant for any livestock producer or 
  5.55  feedlot compliance project is $50,000.  
  5.56  The commissioner shall develop 
  5.57  guidelines for equitable, statewide 
  5.58  disbursement of feedlot compliance 
  5.59  grants.  Any unencumbered balance does 
  5.60  not cancel at the end of the first year 
  5.61  and is available for grants in the 
  5.62  second year.  
  5.63  [FEEDLOT COST SHARE.] (a) $150,000 the 
  5.64  first year and $150,000 the second year 
  5.65  are for grants or interagency transfers 
  5.66  for partial payment on contracts for 
  5.67  the preparation of environmental impact 
  6.1   statements on certain animal feedlot 
  6.2   projects.  To be eligible for partial 
  6.3   payment under this paragraph: 
  6.4   (1) the environmental impact statement 
  6.5   must have been ordered by a district 
  6.6   court against the recommendation of the 
  6.7   pollution control agency; or 
  6.8   (2) the pollution control agency must 
  6.9   have initially ordered the applicant to 
  6.10  prepare an environmental assessment 
  6.11  worksheet but subsequently required the 
  6.12  preparation of a full environmental 
  6.13  impact statement. 
  6.14  (b) Notwithstanding the provision in 
  6.15  Minnesota Rules that an applicant is 
  6.16  required to pay the entire cost of an 
  6.17  environmental impact statement, the 
  6.18  commissioner may provide up to 75 
  6.19  percent of the contract cost and the 
  6.20  applicant must pay the remainder of the 
  6.21  contract cost. 
  6.22  (c) If the pollution control agency 
  6.23  orders an environmental impact 
  6.24  statement after initially requiring 
  6.25  only an environmental assessment 
  6.26  worksheet, as described in paragraph 
  6.27  (a), clause (2), the pollution control 
  6.28  agency must develop the statement of 
  6.29  need and reasonableness at no cost to 
  6.30  the applicant. 
  6.31  (d) If the appropriation in paragraph 
  6.32  (a) for either year is insufficient, 
  6.33  the appropriation for the other year is 
  6.34  available.  Any unencumbered balance 
  6.35  does not cancel at the end of the first 
  6.36  year and is available for grants or 
  6.37  interagency transfers in the second 
  6.38  year. 
  6.39  [GRAIN GERM EXTRACTION RESEARCH AND 
  6.40  DEMONSTRATION GRANTS.] $100,000 the 
  6.41  first year and $100,000 the second year 
  6.42  are for research and demonstration 
  6.43  project grants associated with 
  6.44  second-generation ethanol plants that 
  6.45  advance commercial-scale extraction of 
  6.46  the germ component of grains.  If the 
  6.47  commissioner determines that a grantee, 
  6.48  after making a good-faith attempt, has 
  6.49  been unable to scale up grain germ 
  6.50  extraction technology to commercial 
  6.51  capacity, the grantee may, 
  6.52  nevertheless, remain eligible for 
  6.53  ethanol producer payments under the 
  6.54  second-generation ethanol development 
  6.55  program.  This is a one-time 
  6.56  appropriation.  Any unencumbered 
  6.57  balance does not cancel at the end of 
  6.58  the first year and is available for 
  6.59  grants in the second year. 
  6.60  [ETHANOL PRODUCTION FACILITY LOANS.] 
  6.61  $250,000 in the second year is for 
  6.62  deposit in the ethanol development fund 
  6.63  for loans under the ethanol production 
  6.64  facility loan program of Minnesota 
  7.1   Statutes, section 41B.044.  Base-level 
  7.2   funding for the 2004-2005 biennium is 
  7.3   $500,000. 
  7.4   [SECOND-GENERATION ETHANOL PRODUCER 
  7.5   PAYMENTS.] $720,000 the second year is 
  7.6   for deposit in the second-generation 
  7.7   ethanol development account in the 
  7.8   agricultural fund created under 
  7.9   Minnesota Statutes, section 41A.10, 
  7.10  subdivision 4, paragraph (e), for 
  7.11  payment for ethanol produced at 
  7.12  facilities placed in production after 
  7.13  June 30, 2002.  Base-level funding for 
  7.14  the 2004-2005 biennium is $6,000,000.  
  7.15  This funding level represents a 
  7.16  recapture of payments previously made 
  7.17  to plants whose eligibility for 
  7.18  payments under the original ethanol 
  7.19  producer payment program under 
  7.20  Minnesota Statutes, section 41A.09, has 
  7.21  expired.  Payments in fiscal years 2004 
  7.22  and 2005 must be made to an ethanol 
  7.23  facility that uses wheat and/or barley 
  7.24  as its primary feedstock.  
  7.25  [LAMB AND WOOL PROGRAM.] $100,000 the 
  7.26  first year and $100,000 the second year 
  7.27  are for a collaborative research, 
  7.28  production education, and herd 
  7.29  development and management program at 
  7.30  the Minnesota state colleges and 
  7.31  universities system facility located at 
  7.32  Pipestone for lamb and wool farmers.  
  7.33  [ORGANIC AND SUSTAINABLE PROGRAMS.] (a) 
  7.34  $320,000 the first year and $320,000 
  7.35  the second year are for organic and 
  7.36  sustainable agriculture programs, as 
  7.37  described in paragraphs (b) to (d). 
  7.38  (b) $50,000 each year is for organic 
  7.39  certification cost-share to Minnesota 
  7.40  farmers, assistance to organic growers, 
  7.41  or market development.  Of the amount 
  7.42  for organic programs, at least $70,000 
  7.43  is for cost-share payments and up to 
  7.44  $30,000 may be used for organic market 
  7.45  development or other assistance to 
  7.46  organic growers.  Cost-share payments 
  7.47  must be two-thirds of the cost of the 
  7.48  certification or $200 per farmer, 
  7.49  whichever is less.  A certified farmer 
  7.50  is eligible to receive annual 
  7.51  certification cost-share payments for 
  7.52  up to five years. 
  7.53  (c) $60,000 each year is for a contract 
  7.54  with a qualified research institution 
  7.55  to gather, evaluate, publish, and 
  7.56  disseminate sustainable agriculture 
  7.57  information to a broad audience through 
  7.58  both printed and electronic means.  An 
  7.59  institution receiving funding from the 
  7.60  appropriation in this paragraph must 
  7.61  not provide resources, exposure, or 
  7.62  benefits to organizations involved in 
  7.63  public policy advocacy.  The 
  7.64  commissioner shall require semi-annual 
  7.65  reports on activities of the research 
  7.66  institution. 
  8.1   (d) $210,000 each year is for grants to 
  8.2   farmers for demonstration projects 
  8.3   involving sustainable agriculture as 
  8.4   authorized in Minnesota Statutes, 
  8.5   section 17.116.  Of the amount for 
  8.6   grants, up to $40,000 may be used for 
  8.7   dissemination of information about the 
  8.8   demonstration projects.  
  8.9   [TURF GRASS RESEARCH.] $100,000 the 
  8.10  first year and $100,000 the second year 
  8.11  are for a grant, under contract, to the 
  8.12  northern Minnesota forage-turf seed 
  8.13  advisory committee.  This appropriation 
  8.14  is for basic and applied research on 
  8.15  the improved production of forage and 
  8.16  turf seed related to new and improved 
  8.17  varieties.  Basic and applied research 
  8.18  may be contracted to a qualified third 
  8.19  party.  Not later than March 1, 2003, 
  8.20  the commissioner shall provide an 
  8.21  interim report on the grant to the 
  8.22  committees of the senate and house of 
  8.23  representatives having jurisdiction 
  8.24  over agricultural policy and finance 
  8.25  issues.  Any unencumbered balance does 
  8.26  not cancel at the end of the first year 
  8.27  and is available for grants in the 
  8.28  second year.  
  8.29  [QUARANTINE GREENHOUSE OPERATION.] 
  8.30  $120,000 the first year and $240,000 
  8.31  the second year are for operating funds 
  8.32  to staff and maintain the quarantine 
  8.33  greenhouse facility constructed as 
  8.34  authorized by Laws 2000, chapter 492, 
  8.35  article 1, section 2, subdivision 4. 
  8.36  [AGRICULTURE BEST MANAGEMENT PRACTICES 
  8.37  PROGRAM.] $350,000 the first year and 
  8.38  $350,000 the second year are for the 
  8.39  agricultural best management practices 
  8.40  program. 
  8.41  [MINNESOTA CERTIFICATION PROGRAM.] 
  8.42  $215,000 the first year and $215,000 
  8.43  the second year are for operation of 
  8.44  the Minnesota certification program 
  8.45  under Minnesota Statutes, section 
  8.46  17.1025.  Base-level funding for 
  8.47  2004-2005 biennium is $640,000. 
  8.48  [MINNESOTA GROWN MATCHING.] $71,000 the 
  8.49  first year and $71,000 the second year 
  8.50  are for transfer to the Minnesota grown 
  8.51  matching account and may be used as 
  8.52  grants for Minnesota grown promotion 
  8.53  under Minnesota Statutes, section 
  8.54  17.109. 
  8.55  [WHOLESALE PRODUCE DEALERS LICENSE 
  8.56  ACCOUNT.] $17,000 the first year and 
  8.57  $17,000 the second year is one-time 
  8.58  supplemental funding for the wholesale 
  8.59  produce dealers account. 
  8.60  [GRAIN BUYERS AND STORAGE ACCOUNT.] 
  8.61  $60,000 in the second year is one-time 
  8.62  supplemental funding for the grain 
  8.63  buyers and storage account. 
  9.1   Subd. 4.  Administration and  
  9.2   Financial Assistance                   5,172,000      4,907,000
  9.3   [FARM ADVOCATES PROGRAM.] $274,000 the 
  9.4   first year and $274,000 the second year 
  9.5   are for the farm advocates program. 
  9.6   [TURKEY RESPIRATORY DISEASE RESEARCH.] 
  9.7   $109,000 the first year and $119,000 
  9.8   the second year are for a grant to the 
  9.9   University of Minnesota to fund 
  9.10  research on turkey respiratory disease 
  9.11  control and prevention.  This 
  9.12  appropriation must be matched on a 
  9.13  dollar-for-dollar basis with public or 
  9.14  nonpublic money and is in addition to 
  9.15  other public and nonpublic money for 
  9.16  turkey research.  This is a one-time 
  9.17  appropriation.  Any unencumbered 
  9.18  balance does not cancel at the end of 
  9.19  the first year and is available for 
  9.20  grants in the second year.  
  9.21  [ELECTRONIC INFORMATION MANAGEMENT 
  9.22  SYSTEM.] $425,000 the first year and 
  9.23  $200,000 the second year are for an 
  9.24  electronic information management 
  9.25  system.  This appropriation is in 
  9.26  addition to base funding. 
  9.27  [FAMILY FARM INTEREST PAYMENT 
  9.28  ADJUSTMENTS.] $13,000 the first year 
  9.29  and $7,000 the second year are for 
  9.30  family farm security interest payment 
  9.31  adjustments.  If the appropriation for 
  9.32  either year is insufficient, the 
  9.33  appropriation for the other year is 
  9.34  available for it.  No new loans may be 
  9.35  approved in fiscal year 2002 or 2003.  
  9.36  [NORTHERN CROPS INSTITUTE.] $70,000 the 
  9.37  first year and $70,000 the second year 
  9.38  are for the Northern Crops Institute.  
  9.39  These appropriations may be spent to 
  9.40  purchase equipment.  
  9.41  [AGRICULTURE INFORMATION CENTERS.] 
  9.42  $175,000 the first year and $175,000 
  9.43  the second year are for grants to 
  9.44  agriculture information centers.  The 
  9.45  grants are only available on a match 
  9.46  basis.  The funds may be released at 
  9.47  the rate of $4 of state money for each 
  9.48  $1 of matching nonstate money that is 
  9.49  raised.  
  9.50  [SEAWAY PORT AUTHORITY.] $115,000 the 
  9.51  first year and $115,000 the second year 
  9.52  are for the Seaway Port Authority of 
  9.53  Duluth for purposes of providing direct 
  9.54  assistance and services to cooperative 
  9.55  shippers' associations, agricultural 
  9.56  marketing cooperatives, individual 
  9.57  agricultural producers, and other 
  9.58  groups seeking to benefit from 
  9.59  opportunities to market and ship 
  9.60  commodities from an international 
  9.61  seaway port. 
  9.62  [MINNESOTA LIVESTOCK BREEDERS' 
  9.63  ASSOCIATION.] $19,000 the first year 
 10.1   and $19,000 the second year are for a 
 10.2   grant to the Minnesota Livestock 
 10.3   Breeders' Association. 
 10.4   [COUNTY FAIR EXHIBITOR AWARDS.] $50,000 
 10.5   the first year and $50,000 the second 
 10.6   year are for distribution to county 
 10.7   agricultural societies under Minnesota 
 10.8   Statutes, section 38.02.  This 
 10.9   appropriation is in addition to base 
 10.10  and is added to base in fiscal year 
 10.11  2004. 
 10.12  Sec. 3.  BOARD OF ANIMAL HEALTH        2,964,000      2,846,000 
 10.13  [JOHNE'S DISEASE; CATTLE HERD TESTING.] 
 10.14  $340,000 the first year and $340,000 
 10.15  the second year are for enhancement of 
 10.16  the paratuberculosis (Johne's disease) 
 10.17  program, including financial and 
 10.18  educational assistance with testing and 
 10.19  related activities to reduce the 
 10.20  prevalence of the disease and the 
 10.21  establishment of test-negative herds as 
 10.22  a source of paratuberculosis-free 
 10.23  replacement cattle.  $140,000 of this 
 10.24  appropriation in each year is a 
 10.25  one-time appropriation. 
 10.26  [CONTROL OF PSEUDORABIES AND OTHER 
 10.27  DISEASE EMERGENCIES.] $100,000 the 
 10.28  first year and $100,000 the second year 
 10.29  are to provide short term, emergency 
 10.30  funding for unanticipated livestock 
 10.31  disease outbreaks including continued 
 10.32  efforts to control pseudorabies in 
 10.33  swine.  This appropriation may be used 
 10.34  to cover the costs of pseudorabies 
 10.35  monitoring, vaccines, blood tests, and 
 10.36  laboratory fees.  If the appropriation 
 10.37  for either year is insufficient, the 
 10.38  appropriation for the other year is 
 10.39  available.  This is a one-time 
 10.40  appropriation and remains available 
 10.41  until June 30, 2003. 
 10.42  Sec. 4.  MINNESOTA HORTICULTURAL 
 10.43  SOCIETY                                  41,000         41,000
 10.44  Sec. 5.  AGRICULTURAL UTILIZATION
 10.45  RESEARCH INSTITUTE                    3,880,000      4,130,000
 10.46  $200,000 the first year and $200,000 
 10.47  the second year are for hybrid tree 
 10.48  management research and development of 
 10.49  an implementation plan for establishing 
 10.50  hybrid tree plantations in the state.  
 10.51  This appropriation is available to the 
 10.52  extent matched by $2 of nonstate 
 10.53  contributions, either cash or in kind, 
 10.54  for each $1 of state money. 
 10.55  Sec. 6.  ACRRA FEE BALANCE
 10.56  Notwithstanding Minnesota Statutes, 
 10.57  section 16A.1283, or other law, the 
 10.58  commissioner of agriculture shall 
 10.59  adjust fees collected for the 
 10.60  agricultural chemical response and 
 10.61  reimbursement account created under 
 10.62  Minnesota Statutes, section 18E.03, 
 11.1   subdivision 1, as provided in Minnesota 
 11.2   Statutes, section 18E.03, subdivision 
 11.3   3.  This exemption is intended to allow 
 11.4   the commissioner to maintain the ACRRA 
 11.5   account balance between $1,000,000 and 
 11.6   $5,000,000. 
 11.7      Sec. 7.  [17.1017] [PROMOTIONAL PUBLICATIONS.] 
 11.8      When a copy of the department's promotional publication 
 11.9   commonly referred to as "The Green Book, Marketing Sustainable 
 11.10  Agriculture" is provided to a non-Minnesota resident, the 
 11.11  commissioner may charge a fee for the publication approximately 
 11.12  sufficient to cover the costs of printing and distribution. 
 11.13     Sec. 8.  Minnesota Statutes 2000, section 17.102, 
 11.14  subdivision 3, is amended to read: 
 11.15     Subd. 3.  [LICENSE.] A person may not use the Minnesota 
 11.16  grown logo or labeling without an annual license from the 
 11.17  commissioner.  The commissioner shall issue licenses for a fee 
 11.18  of $5.  The commissioner shall charge a late fee of $10 for 
 11.19  renewal of a license that has expired. 
 11.20     Sec. 9.  Minnesota Statutes 2000, section 17.1025, is 
 11.21  amended to read: 
 11.22     17.1025 [MINNESOTA CERTIFICATION PROGRAM.] 
 11.23     Subdivision 1.  [ESTABLISHMENT.] In cooperation with the 
 11.24  University of Minnesota, the department of trade and economic 
 11.25  development, and the board of animal health, the commissioner 
 11.26  shall establish a pilot program to certify agricultural 
 11.27  production methods and agricultural products grown or processed 
 11.28  within the state to assure the integrity of claims made by 
 11.29  participating businesses, including claims that agricultural 
 11.30  products do not contain material that has been modified directly 
 11.31  or indirectly using genetic engineering, as defined in section 
 11.32  18F.02, subdivision 4.  The commissioner may select and 
 11.33  cooperate with private organizations that have established 
 11.34  procedures and safeguards to justify claimed characteristics of 
 11.35  the production process or the final certified product to conduct 
 11.36  certification activities for third party producers. 
 11.37     The commissioner may establish guidelines for the 
 11.38  certification program, which are not subject to chapter 14.  The 
 12.1   commissioner shall submit a report on the pilot program to the 
 12.2   legislature by February 1, 2001. 
 12.3      Subd. 2.  [CERTIFICATION PROCESS.] Applications for 
 12.4   certification must be submitted to the commissioner and must be 
 12.5   evaluated by representatives of the commissioner, the University 
 12.6   of Minnesota, the department of trade and economic development, 
 12.7   other state agencies with regulatory authority or expertise in 
 12.8   the subject matter of the application or in the certification 
 12.9   process, and any other person named by the commissioner.  
 12.10     The commissioner shall make the final certification 
 12.11  decision after the certification group prepares a 
 12.12  recommendation.  The application may be accepted, denied, or 
 12.13  returned to the applicant for further action.  The 
 12.14  recommendation must be based upon the benefit of the 
 12.15  certification to the producer or processor, the benefit to the 
 12.16  state's agricultural economy, the costs to the state involved in 
 12.17  certification and ongoing monitoring, the quality of internal 
 12.18  and external audit controls to assure compliance with the terms 
 12.19  of the certification, and other factors appropriate to best 
 12.20  benefit the participants and the state.  
 12.21     Subd. 3.  [INTELLECTUAL PROPERTY.] The commissioner shall 
 12.22  develop a logo and develop language to best promote the use of 
 12.23  certified products and procedures, and explore and implement 
 12.24  procedures to best use the resources of the Internet in the 
 12.25  promotion and distribution of Minnesota certified products and 
 12.26  processes.  To the extent practical, the Minnesota certification 
 12.27  program must be coordinated with the Minnesota grown program 
 12.28  under section 17.102 to accomplish the goals of both programs.  
 12.29     Subd. 4.  [CERTIFICATION REVOCATION OR SUSPENSION; 
 12.30  MISDEMEANOR.] A certification may be revoked or suspended by the 
 12.31  commissioner without hearing if the terms of the certification 
 12.32  are not being followed, the certification has become unused or 
 12.33  obsolete, or the continued use of the certification is contrary 
 12.34  to the interests of the state or the purpose of the 
 12.35  certification program.  Use of the certification after 
 12.36  suspension or revocation is a misdemeanor and may also be 
 13.1   enjoined by the commissioner in an action in district court.  
 13.2      Subd. 5.  [MINNESOTA CERTIFIED ACCOUNT.] A Minnesota 
 13.3   certified account is created in the agricultural fund.  All fees 
 13.4   and reimbursements collected under this subdivision must be 
 13.5   deposited in the account.  Money in the account is appropriated 
 13.6   to the commissioner. 
 13.7      Subd. 6.  [NO GUARANTEE OR WARRANTY.] Certification does 
 13.8   not constitute a guarantee or warranty as to any characteristic 
 13.9   of any product or production process.  The state and other 
 13.10  parties involved in the certification decision may not be found 
 13.11  liable for a certification or refusal to certify.  
 13.12     Sec. 10.  Minnesota Statutes 2000, section 17.117, is 
 13.13  amended to read: 
 13.14     17.117 [AGRICULTURE BEST MANAGEMENT PRACTICES LOAN 
 13.15  PROGRAM.] 
 13.16     Subdivision 1.  [PURPOSE.] The purpose of the agriculture 
 13.17  best management practices loan program is to provide low or no 
 13.18  interest financing to farmers, agriculture supply businesses, 
 13.19  and rural landowners for the implementation of agriculture and 
 13.20  other best management practices that reduce environmental 
 13.21  pollution. 
 13.22     Subd. 2.  [AUTHORITY.] The commissioner shall may develop 
 13.23  administrative guidelines specifying criteria, standards, and 
 13.24  procedures for making loans and establish, adopt rules for, and 
 13.25  implement a program to make loans or otherwise provide funds to 
 13.26  local units of government, federal authorities, lending 
 13.27  institutions, and other appropriate organizations who will in 
 13.28  turn provide loans to landowners and businesses for facilities, 
 13.29  fixtures, equipment, or other sustainable best management 
 13.30  practices that prevent or mitigate sources of nonpoint source 
 13.31  water pollution or other adverse environmental impacts.  The 
 13.32  commissioner shall establish pilot projects to develop 
 13.33  procedures for implementing the program.  The commissioner shall 
 13.34  develop administrative guidelines to implement the pilot 
 13.35  projects specifying criteria, standards, and procedures for 
 13.36  making loans.  The agriculture best management practices loan 
 14.1   program must provide a consistent programmatic framework for the 
 14.2   disbursement and administration of funds available to the 
 14.3   commissioner designated to the program for protection of 
 14.4   environmental quality or remediation or mitigation of adverse 
 14.5   environmental impacts.  The distribution of loans or funds 
 14.6   through the program must comply with all limitations, 
 14.7   provisions, or requirements of the respective funding sources.  
 14.8   Unless otherwise limited by the funding source, the commissioner 
 14.9   shall manage the program using perpetual revolving fund accounts.
 14.10     Subd. 3.  [APPROPRIATIONS.] Up to $140,000,000 of the 
 14.11  balance in the water pollution control revolving fund in section 
 14.12  446A.07, as determined by the public facilities authority, is 
 14.13  appropriated to the commissioner for the establishment of this 
 14.14  program.  In addition, the commissioner may receive 
 14.15  appropriations from the legislature and grants or funds from 
 14.16  other sources for implementation of the program. 
 14.17     Subd. 4.  [DEFINITIONS.] (a) For the purposes of this 
 14.18  section, the terms defined in this subdivision have the meanings 
 14.19  given them. 
 14.20     (b) "Agricultural and environmental revolving accounts" 
 14.21  means accounts in the agricultural fund, controlled by the 
 14.22  commissioner, which hold funds available to the program. 
 14.23     (c) "Agriculture supply business" means a person, 
 14.24  partnership, joint venture, corporation, limited liability 
 14.25  company, association, firm, public service company, or 
 14.26  cooperative that provides materials, equipment, or services to 
 14.27  farmers or agriculture-related enterprises. 
 14.28     (d) "Allocation" means the funds awarded to an applicant 
 14.29  for implementation of best management practices through a 
 14.30  competitive or noncompetitive application process. 
 14.31     (a) (e) "Applicant" means a county or a local government 
 14.32  unit designated by a county under subdivision 8, paragraph 
 14.33  (a) local unit of government eligible to participate in this 
 14.34  program that requests an allocation of funds as provided in 
 14.35  subdivision 6b. 
 14.36     (b) "Authority" means the Minnesota public facilities 
 15.1   authority as established in section 446A.03. 
 15.2      (c) (f) "Best management practices" has the meaning given 
 15.3   in sections 103F.711, subdivision 3, and 103H.151, subdivision 
 15.4   2, or other practices, techniques, and measures that have been 
 15.5   demonstrated to the satisfaction of the commissioner to prevent 
 15.6   or reduce adverse environmental impacts by using the most 
 15.7   effective and practicable means of achieving environmental goals.
 15.8      (d) "Chair" means the chair of the board of water and soil 
 15.9   resources or the designee of the chair. 
 15.10     (e) (g) "Borrower" means an individual a farmer, an 
 15.11  agriculture supply business, or a rural landowner applying for a 
 15.12  low-interest loan. 
 15.13     (f) (h) "Commissioner" means the commissioner of 
 15.14  agriculture, including when the commissioner is acting in the 
 15.15  capacity of chair of the rural finance authority, or the 
 15.16  designee of the commissioner. 
 15.17     (i) "Committed project" means an eligible project scheduled 
 15.18  to be implemented at a future date:  
 15.19     (1) that has been approved and certified by the local 
 15.20  government unit; and 
 15.21     (2) for which a local lender has obligated itself to offer 
 15.22  a loan. 
 15.23     (g) (j) "Comprehensive water management plan" means a state 
 15.24  approved and locally adopted plan authorized under section 
 15.25  103B.231, 103B.255, 103B.311, 103C.331, 103D.401, or 103D.405. 
 15.26     (h) "Local allocation request" means a loan allocation 
 15.27  request from an applicant to implement agriculturally related 
 15.28  best management practices defined in paragraph (c). 
 15.29     (k) "Cost incurred" means expenses for implementation of a 
 15.30  project accrued because the borrower has agreed to purchase 
 15.31  equipment or is obligated to pay for services or materials 
 15.32  already provided as a result of implementing a prior approved 
 15.33  eligible project. 
 15.34     (l) "Farmer" means a person, partnership, joint venture, 
 15.35  corporation, limited liability company, association, firm, 
 15.36  public service company, or cooperative that regularly 
 16.1   participates in physical labor or operations management of 
 16.2   farming and files a Schedule F as part of filing United States 
 16.3   Internal Revenue Service Form 1040 or indicates farming as the 
 16.4   primary business activity under Schedule C, K, or S, or any 
 16.5   other applicable report to the United States Internal Revenue 
 16.6   Service. 
 16.7      (i) (m) "Lender agreement" means a loan agreement entered 
 16.8   into between the commissioner, a local lender, and the 
 16.9   applicant, if different from the local lender.  The agreement 
 16.10  will contain terms and conditions of the loan that will include 
 16.11  but need not be limited to general loan provisions, loan 
 16.12  management requirements, application of payments, loan term 
 16.13  limits, allowable expenses, and fee limitations an agreement 
 16.14  entered into between the commissioner and a local lender which 
 16.15  contains terms and conditions of participation in the program. 
 16.16     (j) (n) "Local government unit" means a county, soil and 
 16.17  water conservation district, or an organization formed for the 
 16.18  joint exercise of powers under section 471.59 with the authority 
 16.19  to participate in the program. 
 16.20     (k) (o) "Local lender" means a local government unit as 
 16.21  defined in paragraph (j) (n), a state or federally chartered 
 16.22  bank, a savings association, a state or federal credit 
 16.23  union, Agribank and its affiliated organizations, or a nonprofit 
 16.24  economic development organization or other financial lending 
 16.25  institution approved by the commissioner, or Farm Credit 
 16.26  Services. 
 16.27     (p) "Local revolving loan account" means the account held 
 16.28  by a local government unit and a local lender into which 
 16.29  principal repayments from borrowers are deposited and new loans 
 16.30  are issued in accordance with the requirements of the program 
 16.31  and lender agreements. 
 16.32     (l) (q) "Nonpoint source" has the meaning given in section 
 16.33  103F.711, subdivision 6. 
 16.34     (r) "Program" means the agriculture best management 
 16.35  practices loan program in this section. 
 16.36     (s) "Project" means one or more components or activities 
 17.1   located within Minnesota that are required by the local 
 17.2   government unit to be implemented for satisfactory completion of 
 17.3   an eligible best management practice. 
 17.4      (t) "Rural landowner" means the owner of record of 
 17.5   Minnesota real estate located in an area determined by the local 
 17.6   government unit to be rural after consideration of local land 
 17.7   use patterns, zoning regulations, jurisdictional boundaries, 
 17.8   local community definitions, historical uses, and other 
 17.9   pertinent local factors. 
 17.10     Subd. 5.  [USES OF FUNDS.] Use of funds under this section 
 17.11  must be in compliance with the rules and regulations of the 
 17.12  funding source or appropriation.  Use of funds from the public 
 17.13  facilities authority must comply with the federal Water 
 17.14  Pollution Control Act, section 446A.07, and eligible activities 
 17.15  listed in the intended use plan authorized in section 446A.07, 
 17.16  subdivision 4. 
 17.17     Subd. 5a.  [AGRICULTURAL AND ENVIRONMENTAL REVOLVING 
 17.18  ACCOUNTS.] (a) There shall be established in the agricultural 
 17.19  fund revolving accounts to receive appropriations and money from 
 17.20  other sources.  All repayments of loans granted under this 
 17.21  section, including principal and interest, must be deposited 
 17.22  into the appropriate revolving account including the water 
 17.23  pollution control revolving account under section 446A.07.  
 17.24  Interest earned in an account accrues to that account. 
 17.25     (b) The money in the revolving accounts is appropriated to 
 17.26  the commissioner for the purposes of this section. 
 17.27     Subd. 6.  [APPLICATION.] (a) Only the following local 
 17.28  government units may apply for funds under this program: 
 17.29     (1) counties or their designees; 
 17.30     (2) soil and water conservation districts; and 
 17.31     (3) joint power organizations consisting of counties or 
 17.32  their designees or soil and water conservation districts. 
 17.33     (b) A county may submit an application for an allocation.  
 17.34  A county or a group of counties may designate another local 
 17.35  government unit to submit a local allocation request on their 
 17.36  behalf.  If a county does not submit an application, and does 
 18.1   not designate another local government unit, a soil and water 
 18.2   conservation district may submit an application for an 
 18.3   allocation.  If the local soil and water conservation district 
 18.4   does not submit an application, then an eligible joint powers 
 18.5   organization may submit an application for an allocation.  In 
 18.6   all instances, there may be only one application representing 
 18.7   any geographic area.  The applicant must coordinate and submit 
 18.8   requests on behalf of other units of government within the 
 18.9   geographic jurisdiction of the applicant. 
 18.10     (a) (c) The commissioner must prescribe forms and establish 
 18.11  an application process for applicants to apply for a local an 
 18.12  allocation request of funds.  The application must include but 
 18.13  need not be limited to (1) the geographic area served; (2) the 
 18.14  type and estimated cost of activities or projects for which they 
 18.15  are seeking a loan an allocation; and (3) a ranking 
 18.16  prioritization or targeting of proposed activities or projects; 
 18.17  and (4) the designation of the local lender and lending 
 18.18  practices the local lender intends to use to issue the loans to 
 18.19  the borrowers, if a local lender other than the applicant is to 
 18.20  be used. 
 18.21     (b) (d) If a local allocation request an application is 
 18.22  rejected, the applicant must be notified in writing as to the 
 18.23  reasons for the rejection and given 30 days to submit a revised 
 18.24  application.  The revised application shall be reviewed 
 18.25  according to the same procedure used to review the initial 
 18.26  application.  Failure of an applicant to be awarded funds does 
 18.27  not constitute a rejection of the application. 
 18.28     Subd. 6a.  [REVIEW AND RANKING OF APPLICATIONS.] (a) The 
 18.29  commissioner shall chair the subcommittee established in section 
 18.30  103F.761, subdivision 2, paragraph (b), for purposes of 
 18.31  reviewing and ranking applications and recommending to the 
 18.32  commissioner allocation amounts.  The subcommittee consists of 
 18.33  representatives of the departments of agriculture, natural 
 18.34  resources, and health; the pollution control agency; the board 
 18.35  of water and soil resources; the Farm Service Agency and the 
 18.36  Natural Resource Conservation Service of the United States 
 19.1   Department of Agriculture; the Association of Minnesota 
 19.2   Counties; the Minnesota Association of Soil and Water 
 19.3   Conservation Districts; and other agencies or associations the 
 19.4   commissioner determines are appropriate. 
 19.5      (b) The subcommittee must use the following criteria as 
 19.6   well as other criteria it determines appropriate in carrying out 
 19.7   the review and ranking: 
 19.8      (1) whether the proposed activities are identified in a 
 19.9   comprehensive water management plan or other appropriate local 
 19.10  planning documents as priorities; 
 19.11     (2) the potential that the proposed activities have for 
 19.12  improving or protecting environmental quality; 
 19.13     (3) the extent that the proposed activities support 
 19.14  areawide or multijurisdictional approaches to protecting 
 19.15  environmental quality based on defined watershed or similar 
 19.16  geographic areas; 
 19.17     (4) whether the activities are needed for compliance with 
 19.18  existing environmental laws or rules; 
 19.19     (5) whether the proposed activities demonstrate 
 19.20  participation, coordination, and cooperation between local units 
 19.21  of government and other public agencies; 
 19.22     (6) whether there is coordination with other public and 
 19.23  private funding sources and programs; 
 19.24     (7) whether the applicant has targeted specific best 
 19.25  management practices to resolve specific environmental problems; 
 19.26     (8) past performance of the applicant in completing 
 19.27  projects identified in prior applications and allocation 
 19.28  agreements; and 
 19.29     (9) whether there are off-site public benefits. 
 19.30     Subd. 6b.  [ALLOCATION AMOUNT.] (a) The subcommittee 
 19.31  created in subdivision 6a shall recommend to the commissioner 
 19.32  the amount of allocation for each applicant.  This allocation 
 19.33  must include: 
 19.34     (1) the amount of repayments received by the commissioner 
 19.35  during the previous year from prior completed projects approved 
 19.36  by the local government unit; and 
 20.1      (2) the amount of funds previously designated to committed 
 20.2   projects. 
 20.3      (b) Within the limits of the funds available to the 
 20.4   commissioner, the subcommittee may recommend an increased 
 20.5   allocation award to the applicant based on: 
 20.6      (1) the ranking of the local government unit application 
 20.7   under subdivision 6a; and 
 20.8      (2) the amount of unallocated or uncommitted funds in, or 
 20.9   that will be received by, the agricultural and environmental 
 20.10  revolving accounts within one year. 
 20.11     (c) Notwithstanding paragraphs (a) and (b), the 
 20.12  commissioner may reserve up to two percent of all funds 
 20.13  appropriated to the agricultural and environmental revolving 
 20.14  accounts to be allocated to applicants that disburse or commit 
 20.15  all of their current allocations or to local lenders who wish to 
 20.16  provide financial assistance.  
 20.17     (d) The commissioner may add, for the purposes of 
 20.18  calculating future allocations under paragraphs (a) and (b), the 
 20.19  loan amount for projects financed from these reserved funds to 
 20.20  the allocation for the respective local government units in 
 20.21  which jurisdiction the project was completed.  
 20.22     Subd. 7.  [PAYMENTS TO LOCAL LENDERS.] (a) Payments made 
 20.23  from the water pollution control revolving fund commissioner to 
 20.24  the local lender must be made in accordance with applicable 
 20.25  state and federal laws and rules governing the payments and the 
 20.26  lender agreement. 
 20.27     (b) Payments from the commissioner to the local lender must 
 20.28  be disbursed on a cost-incurred basis.  Local lenders shall 
 20.29  submit payment requests at least quarterly but not more than 
 20.30  monthly.  Payment requests must be reviewed and approved by the 
 20.31  commissioner.  The payment request form must itemize all costs 
 20.32  by major elements and show eligible and ineligible costs.  The 
 20.33  request must be made in accordance with requirements and 
 20.34  procedures established by the commissioner.  Payment requests 
 20.35  must be reviewed and approved by the commissioner. 
 20.36     (c) The commissioner may initiate recision of an allocation 
 21.1   granted in a lender agreement as provided in subdivision 11, 
 21.2   paragraph (d), if the local lender fails to enter into loans 
 21.3   with borrowers equaling the total allocation granted within one 
 21.4   year from the date of the lender agreement or fails to have the 
 21.5   total amount of allocated funds drawn down through payment 
 21.6   requests within two years.  An additional year to draw down the 
 21.7   undisbursed portion of an allocation may be granted by the 
 21.8   commissioner under extenuating circumstances.  
 21.9      Subd. 8.  [APPLICANT; BORROWERS ALLOCATION AGREEMENT.] (a) 
 21.10  A county may submit a local allocation request.  A county or a 
 21.11  group of counties may designate another local government unit to 
 21.12  submit a local allocation request. 
 21.13     (b) If a county does not submit a local allocation request, 
 21.14  and does not designate another local government unit, a soil and 
 21.15  water conservation district may submit a local allocation 
 21.16  request.  In all instances, there may be only one request from a 
 21.17  county.  The applicant must coordinate and submit requests on 
 21.18  behalf of other units of government within the geographic 
 21.19  jurisdiction of the applicant.  Eligible local government units 
 21.20  with an allocation award may enter into an allocation agreement 
 21.21  with the commissioner and participate in this program. 
 21.22     (b) The allocation agreement must contain terms and 
 21.23  conditions for participation in this program and providing of 
 21.24  funds through this program, including, but not limited to:  
 21.25  program requirements, reporting requirements, project 
 21.26  eligibility and limitations, allowable expenses, limitations, 
 21.27  recision and cancellation provisions, and the responsibilities 
 21.28  of the commissioner, local government unit, and local lender. 
 21.29     (c) If the commissioner determines that a local government 
 21.30  unit is not in compliance with the terms of the allocation 
 21.31  agreement, the commissioner may rescind all or part of any 
 21.32  allocation awarded through this program. 
 21.33     Subd. 9.  [REVIEW AND RANKING OF ALLOCATION REQUESTS 
 21.34  ALLOCATION RECISION.] (a) The commissioner shall chair the 
 21.35  subcommittee established in section 103F.761, subdivision 2, 
 21.36  paragraph (b), for purposes of reviewing and ranking local 
 22.1   allocation requests.  The rankings must be in order of priority 
 22.2   and shall provide financial assistance within the limits of the 
 22.3   funds available.  In carrying out the review and ranking, the 
 22.4   subcommittee must consist of, at a minimum, the chair, 
 22.5   representatives of the pollution control agency, United States 
 22.6   Department of Agricultural Stabilization and Conservation 
 22.7   Service, United States Department of Agriculture Soil 
 22.8   Conservation Service, Association of Minnesota Counties, and 
 22.9   other agencies or associations as the commissioner, the chair, 
 22.10  and agency determine are appropriate.  The review and ranking 
 22.11  shall take into consideration other related state or federal 
 22.12  programs. 
 22.13     (b) The subcommittee shall use the criteria listed below in 
 22.14  carrying out the review and ranking: 
 22.15     (1) whether the proposed activities are identified in a 
 22.16  comprehensive water management plan as priorities; 
 22.17     (2) whether the applicant intends to establish a revolving 
 22.18  loan program under subdivision 10, paragraph (b); 
 22.19     (3) the potential that the proposed activities have for 
 22.20  improving or protecting surface and groundwater quality; 
 22.21     (4) the extent that the proposed activities support 
 22.22  areawide or multijurisdictional approaches to protecting water 
 22.23  quality based on defined watershed; 
 22.24     (5) whether the activities are needed for compliance with 
 22.25  existing water related laws or rules; 
 22.26     (6) whether the proposed activities demonstrate 
 22.27  participation, coordination, and cooperation between local units 
 22.28  of government and other public agencies; 
 22.29     (7) whether there is coordination with other public and 
 22.30  private funding sources and programs; 
 22.31     (8) whether there are off-site public benefits such as 
 22.32  preventing downstream degradation and siltation; and 
 22.33     (9) the proposed interest rate.  (a) Continued availability 
 22.34  of allocations granted to a local government unit is contingent 
 22.35  upon the commissioner's approval of the local government unit's 
 22.36  annual report.  The commissioner shall review this annual report 
 23.1   to ensure that the past and future uses of the funds are 
 23.2   consistent with the comprehensive water management plan, other 
 23.3   local planning documents, the requirements of the funding 
 23.4   source, and compliance to program requirements.  If the 
 23.5   commissioner concludes the past or intended uses of the money 
 23.6   are not consistent with these requirements, the commissioner 
 23.7   shall rescind all or part of the allocation awarded to a local 
 23.8   government unit. 
 23.9      (b) The commissioner may rescind funds allocated to the 
 23.10  local government unit that are not designated to committed 
 23.11  projects or disbursed within one year from the date of the 
 23.12  allocation agreement. 
 23.13     (c) An additional year to use the undisbursed portion of an 
 23.14  allocation may be granted by the commissioner under extenuating 
 23.15  circumstances. 
 23.16     Subd. 9a.  [AUTHORITY AND RESPONSIBILITIES OF APPLICANTS 
 23.17  LOCAL GOVERNMENT UNITS.] Applicants may enter into a lender 
 23.18  agreement designating a local lender.  Applicants designating 
 23.19  themselves as the local lender may enter into contracts for loan 
 23.20  review, processing, and servicing. (a) A local government unit 
 23.21  that enters into an allocation agreement with the commissioner: 
 23.22     (1) is responsible for the local administration and 
 23.23  implementation of the program in accordance with this section; 
 23.24     (2) may submit applications for allocations to the 
 23.25  commissioner; 
 23.26     (3) shall identify, develop, determine eligibility, define 
 23.27  and approve projects, designate maximum loan amounts for 
 23.28  projects, and certify completion of projects implemented under 
 23.29  this program.  In areas where no local government unit has 
 23.30  applied for funds under this program, the commissioner may 
 23.31  appoint a local government unit to review and certify projects 
 23.32  or the commissioner may assume the authority and responsibility 
 23.33  of the local government unit; 
 23.34     (4) shall certify as eligible only projects that are within 
 23.35  its geographic jurisdiction or within the geographic area 
 23.36  identified in its local comprehensive water management plans or 
 24.1   other local planning documents; 
 24.2      (5) may require withholding by the local lender of all or a 
 24.3   portion of the loan to the borrower until satisfactory 
 24.4   completion of all required components of a certified project; 
 24.5      (6) shall identify which account is used to finance an 
 24.6   approved project if the local government unit has allocations 
 24.7   from multiple accounts in the agricultural and environmental 
 24.8   revolving accounts; 
 24.9      (7) shall report to the commissioner annually the past and 
 24.10  intended uses of allocations awarded; and 
 24.11     (8) may request additional funds in excess of their 
 24.12  allocation when funds are available in the agricultural and 
 24.13  environmental revolving accounts, as long as all other 
 24.14  allocation awards to the local government unit have been used or 
 24.15  committed. 
 24.16     (b) If a local government unit withdraws from participation 
 24.17  in this program, the local government unit, or the commissioner 
 24.18  in accordance with the priorities established under subdivision 
 24.19  6a, may designate another local government unit that is eligible 
 24.20  under subdivision 6, as the new local government unit 
 24.21  responsible for local administration of this program.  This 
 24.22  designated local government unit may accept responsibility and 
 24.23  administration of allocations awarded to the former responsible 
 24.24  local government unit. 
 24.25     Subd. 9b.  [LENDER AGREEMENT.] (a) Any local lender 
 24.26  entering into a lender agreement with the commissioner may 
 24.27  participate in this program. 
 24.28     (b) The lender agreement will contain terms and conditions 
 24.29  for participation in this program and providing funds to the 
 24.30  local lenders, including but not limited to, program 
 24.31  requirements, loan and account management requirements, 
 24.32  payments, repayments, term limits, allowable expenses, fee 
 24.33  limitations, recision and cancellation provisions, collateral 
 24.34  and security requirements, reporting requirements, review and 
 24.35  appeal procedure for cancellation of the loan agreement or 
 24.36  disqualification as a local lender, and the responsibilities of 
 25.1   the commissioner, local government unit, and local lender. 
 25.2      (c) If the commissioner determines that a local lender is 
 25.3   not in compliance with the terms of the lender agreement, the 
 25.4   commissioner may take the following actions: 
 25.5      (1) disqualify the local lender as a participating lender 
 25.6   in this program for a period of up to five years from the date 
 25.7   that the commissioner determines noncompliance to the lender 
 25.8   agreement; and 
 25.9      (2) require immediate or accelerated repayment of all or 
 25.10  part of all funds provided to the local lender. 
 25.11     (d) Existing lender agreements, executed prior to July 1, 
 25.12  2001, may be amended by mutual consent of all signatory parties, 
 25.13  to comply with this section, to establish a single allocation 
 25.14  agreement that includes the amount of prior allocation awards 
 25.15  and defines the terms and conditions required under subdivision 
 25.16  8, or to modify the amount of allocation awarded. 
 25.17     Subd. 10.  [AUTHORITY AND RESPONSIBILITIES OF LOCAL 
 25.18  LENDERS.] (a) Local lenders may enter into lender agreements 
 25.19  with the commissioner. 
 25.20     (b) Local lenders may enter into loan agreements with 
 25.21  borrowers to finance eligible projects under this section. 
 25.22     (c) Local lenders may establish revolving loan programs to 
 25.23  finance projects under this section The local lender shall 
 25.24  notify the local government unit of the loan amount issued to 
 25.25  the borrower after the closing of each loan. 
 25.26     (d) Local lenders with local revolving loan accounts 
 25.27  created before July 1, 2001, may continue to retain and use 
 25.28  those accounts in accordance with their lending agreements for 
 25.29  the full term of those agreements. 
 25.30     (e) Local lenders, including applicants local government 
 25.31  units designating themselves as the local lender, may enter into 
 25.32  participation agreements with other lenders. 
 25.33     (f) Local lenders may also enter into contracts with other 
 25.34  lenders for the limited purposes of loan review, processing and 
 25.35  servicing, or to enter into loan agreements with borrowers to 
 25.36  finance projects under this section.  Other lenders entering 
 26.1   into contracts with local lenders under this section must meet 
 26.2   the definition of local lender in subdivision 4, must comply 
 26.3   with all provisions of the lender agreement and this section, 
 26.4   and must guarantee repayment of the loan funds to the local 
 26.5   lender.  In no case may there be more than one local lender per 
 26.6   county or more than one revolving fund per county. 
 26.7      (g) When required by the local government unit, a local 
 26.8   lender must withhold all or a portion of the loan disbursement 
 26.9   for a project until notified by the local government unit that 
 26.10  the project has been satisfactorily completed. 
 26.11     (h) The local lender is responsible for repaying all funds 
 26.12  provided by the commissioner to the local lender. 
 26.13     (i) The local lender is responsible for collecting 
 26.14  repayments from borrowers.  If a borrower defaults on a loan 
 26.15  issued by the local lender, it is the responsibility of the 
 26.16  local lender to obtain repayment from the borrower.  Default on 
 26.17  the part of borrowers shall have no effect on the local lender's 
 26.18  responsibility to repay its obligations to the commissioner 
 26.19  whether or not the local lender fully recovers defaulted amounts 
 26.20  from borrowers. 
 26.21     (j) The local lender shall provide sufficient collateral or 
 26.22  protection to the commissioner for the funds provided to the 
 26.23  local lender.  The commissioner must approve the collateral or 
 26.24  protection provided. 
 26.25     Subd. 11.  [LOANS ISSUED TO BORROWER ELIGIBILITY; TERMS; 
 26.26  REPAYMENT; RECISION.] (a) Local lenders shall use the following 
 26.27  criteria in addition to other criteria they deem necessary in 
 26.28  determining the eligibility of borrowers for loans: 
 26.29     (1) whether the activity is certified by a local unit of 
 26.30  government may issue loans only for projects that are approved 
 26.31  and certified by the local government unit as meeting priority 
 26.32  needs identified in a comprehensive water management plan and is 
 26.33  or other local planning documents, are in compliance with 
 26.34  accepted practices, standards, specifications, or criteria; 
 26.35     (2) whether the activity is certified as, and are eligible 
 26.36  for financing under Environmental Protection Agency or other 
 27.1   applicable guidelines; and 
 27.2      (3) whether the repayment is assured from the borrower. 
 27.3      (b) The local lender may use any additional criteria 
 27.4   considered necessary to determine the eligibility of borrowers 
 27.5   for loans. 
 27.6      (c) Local lenders shall set the terms and conditions of 
 27.7   loans to borrowers, except that: 
 27.8      (1) no loan to an individual a borrower may exceed $50,000; 
 27.9      (2) no loan for a project may exceed $50,000; and 
 27.10     (3) no borrower shall, at any time, have multiple loans 
 27.11  from this program with a total outstanding loan balance of more 
 27.12  than $50,000.  In all instances, local lenders must provide for 
 27.13  sufficient collateral or protection for the loan principal.  
 27.14  They are responsible for collecting repayments by borrowers.  
 27.15     (c) The local lender is responsible for repaying the 
 27.16  principal of a loan to the commissioner.  The terms of repayment 
 27.17  will be identified in the lender agreement.  If defaults occur, 
 27.18  it is the responsibility of the local lender to obtain repayment 
 27.19  from the borrower.  Default on the part of individual borrowers 
 27.20  shall have no effect on the local lender's responsibility to 
 27.21  repay its loan from the commissioner whether or not the local 
 27.22  lender fully recovers defaulted amounts from individual 
 27.23  borrowers.  For revolving loan programs established under 
 27.24  subdivision 10, paragraph (c), the lender agreement must provide 
 27.25  that: 
 27.26     (1) repayment of principal to the commissioner must begin 
 27.27  no later than ten years after the date of the lender agreement 
 27.28  and must be repaid in full no later than 20 years after the date 
 27.29  of the lender agreement; 
 27.30     (2) after the initial ten-year period, the local lender 
 27.31  shall not write any additional loans, and any existing principal 
 27.32  balance held by the local lender shall be immediately repaid to 
 27.33  the commissioner; 
 27.34     (3) after the initial ten-year period, all principal 
 27.35  received by the local lender from borrowers shall be repaid to 
 27.36  the commissioner as it is received; and 
 28.1      (4) the applicant shall report to the commissioner annually 
 28.2   regarding the past and intended uses of the money in the 
 28.3   revolving loan program. 
 28.4      (d) Continued availability of the allocation granted in the 
 28.5   lender agreement is contingent upon commissioner approval of the 
 28.6   annual report.  The commissioner shall review the annual report 
 28.7   to ensure the past and future uses of the funds are consistent 
 28.8   with the comprehensive water management plan and the lender 
 28.9   agreement.  If the commissioner concludes the past or intended 
 28.10  uses of the money are not consistent with the comprehensive 
 28.11  water management plan or the lender agreement, the commissioner 
 28.12  shall rescind the allocation granted under the lender agreement. 
 28.13  Such recision shall result in termination of available 
 28.14  allocation, the immediate repayment of any unencumbered funds 
 28.15  held by the local lender in a revolving loan fund, and the 
 28.16  repayment of the principal portion of loan repayments to the 
 28.17  commissioner as they are received.  The lender agreement shall 
 28.18  reflect the commissioner's rights under this paragraph. 
 28.19     (e) A local lender shall receive certification from local 
 28.20  government unit staff that a project has been satisfactorily 
 28.21  completed prior to releasing the final loan disbursement. 
 28.22     (d) The maximum term length for conservation tillage and 
 28.23  individual sewage treatment system projects is five years.  The 
 28.24  maximum term length for other projects in this section is ten 
 28.25  years. 
 28.26     (e) Fees charged at the time of closing must: 
 28.27     (1) be in compliance with normal and customary practices of 
 28.28  the local lender; 
 28.29     (2) be in accordance with published fee schedules issued by 
 28.30  the local lender; 
 28.31     (3) not be based on participation in the program; and 
 28.32     (4) be consistent with fees charged other similar types of 
 28.33  loans offered by the local lender. 
 28.34     (f) The interest rate assessed to an outstanding loan 
 28.35  balance by the local lender must not exceed three percent per 
 28.36  year. 
 29.1      Subd. 11a.  [ELIGIBLE PROJECTS.] All projects that 
 29.2   remediate or mitigate adverse environmental impacts are eligible 
 29.3   if: 
 29.4      (1) the project is eligible under the allocation agreement 
 29.5   and provisions of the originating appropriation or funding 
 29.6   sources designated by the local government unit to finance the 
 29.7   project; and 
 29.8      (2) manure management projects remediate or mitigate 
 29.9   impacts from facilities with less than 1,000 animal units as 
 29.10  defined in Minnesota Rules, chapter 7020. 
 29.11     Subd. 12.  [DATA PRIVACY.] The following data on applicants 
 29.12  local government units, local lenders, or borrowers collected by 
 29.13  the commissioner under this section are private for data on 
 29.14  individuals as provided in section 13.02, subdivision 12, or 
 29.15  nonpublic for data not on individuals as provided in section 
 29.16  13.02, subdivision 9:  financial information, including, but not 
 29.17  limited to, credit reports, financial statements, tax returns 
 29.18  and net worth calculations received or prepared by the 
 29.19  commissioner. 
 29.20     Subd. 13.  [ESTABLISHMENT OF ACCOUNT.] The public 
 29.21  facilities authority shall establish an account called the 
 29.22  agriculture best management practices revolving fund to provide 
 29.23  loans and other forms of financial assistance authorized under 
 29.24  section 446A.07.  The fund must be credited with repayments. 
 29.25     Subd. 14.  [FEES AND INTEREST.] (a) Origination fees 
 29.26  charged directly to borrowers by local lenders upon executing a 
 29.27  loan shall not exceed one-half of one percent of the loan 
 29.28  amount.  Interest assessed to loan repayments by the local 
 29.29  lender must not exceed three percent.  
 29.30     (b) The local lender shall create a principal account to 
 29.31  which the principal portions of individual borrower loan 
 29.32  repayments will be credited. 
 29.33     (c) Any interest earned on outstanding loan balances not 
 29.34  separated as repayments are received and before the principal 
 29.35  amounts are deposited in the principal account shall be added to 
 29.36  the principal portion of the loan to the local lender and must 
 30.1   be paid to the commissioner when the principal is due under the 
 30.2   lender agreement. 
 30.3      (d) Any interest earned on the principal account must be 
 30.4   added to the principal portion of the loan to the local lender 
 30.5   and must be paid to the commissioner when the principal is due 
 30.6   under the lender agreement. 
 30.7      Subd. 15.  [COMMISSIONER'S REPORT.] (a) The commissioner 
 30.8   and chair shall prepare and submit a report to the house of 
 30.9   representatives and senate committees with jurisdiction over the 
 30.10  environment, natural resources, and agriculture by October 15 of 
 30.11  each odd-numbered year. 
 30.12     (b) The report shall include, but need not be limited to, 
 30.13  matters such as loan allocations and uses, the extent to which 
 30.14  the financial assistance is helping implement local water and 
 30.15  other environmental planning priorities, the integration or 
 30.16  coordination that has occurred with related programs, and other 
 30.17  matters deemed pertinent to the implementation of the program. 
 30.18     Subd. 16.  [LIENS AGAINST PROPERTY.] (a) Unless a county 
 30.19  determines otherwise, at the time of the disbursement of funds 
 30.20  on a loan to a borrower under this section, the principal 
 30.21  balance due plus accrued interest on the principal balance as 
 30.22  provided by this section becomes a lien in favor of the county 
 30.23  making the loan upon the real property on which the project is 
 30.24  located.  The lien must be first and prior to all other liens 
 30.25  against the property, including state tax liens, whether filed 
 30.26  before or after the placing of a lien under this subdivision, 
 30.27  except liens for special assessments by the county under 
 30.28  applicable special assessments laws, which liens shall be of 
 30.29  equal rank with the lien created under this subdivision.  A lien 
 30.30  in favor of the county shall be first and prior as provided in 
 30.31  this subdivision only if the county making the loan gives 
 30.32  written notice of the intent to make the loan under this 
 30.33  subdivision to all other persons having a recorded interest in 
 30.34  the real property subject to the lien, no less than 30 days 
 30.35  prior to the disbursement of the funds, and receives an 
 30.36  agreement to subordinate superior lien positions held by all 
 31.1   other lenders having a recorded interest in the real property 
 31.2   subject to the lien.  This lien and subordination agreement must 
 31.3   be recorded against the real estate in the county recorder's 
 31.4   office or filed with the registrar of titles for the county or 
 31.5   counties in which the property is located.  The county may bill 
 31.6   amounts due on the loan on the tax statement for the property.  
 31.7   Enforcement of the lien created by this subdivision shall, at 
 31.8   the county's option, be in the manner set forth in chapter 580 
 31.9   or 581.  When the amount due plus interest has been paid, the 
 31.10  county shall file a satisfaction of the lien created under this 
 31.11  subdivision.  
 31.12     (b) A county may also secure amounts due on a loan under 
 31.13  this section by taking a purchase money security interest in 
 31.14  equipment in accordance with chapter 336, article 9, and may 
 31.15  enforce the purchase money security interest in accordance with 
 31.16  chapters 336, article 9, and 565. 
 31.17     Subd. 17.  [REFERENDUM EXEMPTION.] For the purpose of 
 31.18  obtaining a loan from the commissioner, a local government unit 
 31.19  may provide to the commissioner its general obligation note.  
 31.20  All obligations incurred by a local government unit in obtaining 
 31.21  a loan from the commissioner must be in accordance with chapter 
 31.22  475, except that so long as the obligations are issued to 
 31.23  evidence a loan from the commissioner to the local government 
 31.24  unit, an election is not required to authorize the obligations 
 31.25  issued, and the amount of the obligations shall not be included 
 31.26  in determining the net indebtedness of the local government unit 
 31.27  under the provisions of any law or chapter limiting the 
 31.28  indebtedness. 
 31.29     Sec. 11.  [17.131] [FEEDLOT PERMIT SPECIALIST PROGRAM.] 
 31.30     Subdivision 1.  [PURPOSE.] The feedlot permit specialist 
 31.31  program is primarily, but not exclusively, intended to assist 
 31.32  operators proposing to permit feedlots with capacities of under 
 31.33  500 animal units.  
 31.34     Subd. 2.  [SPECIALISTS; DUTIES, ASSIGNMENT.] (a) The 
 31.35  commissioner shall employ or contract for feedlot permit 
 31.36  specialists to support operators of small and medium sized farms 
 32.1   that wish to develop or expand animal agriculture operations in 
 32.2   the state.  The support does not provide legal fees or court 
 32.3   costs but must include review of draft business plans, 
 32.4   assistance with preparing and submitting applications for any 
 32.5   necessary local or state permits, technical support before and 
 32.6   during any public hearings, and advocacy during any permit 
 32.7   appeals. 
 32.8      (b) Farm operators may apply to the commissioner for the 
 32.9   services of a feedlot permit specialist.  The application must 
 32.10  include reasonable details on the existing farm operation and a 
 32.11  business plan related to the development or expansion of the 
 32.12  proposed livestock operation.  From the information submitted, 
 32.13  the commissioner shall determine the applicant's eligibility and 
 32.14  whether or not to grant the request for a specialist.  An 
 32.15  applicant whose request is declined may reapply after six months.
 32.16     (c) If the request for the services of a specialist is 
 32.17  granted, the commissioner shall appoint a specialist qualified 
 32.18  to assist the applicant based on the type of livestock proposed 
 32.19  in the plan, the geographic area of the state, and other factors 
 32.20  determined by the commissioner. 
 32.21     (d) A specialist appointed by the commissioner shall have 
 32.22  primary responsibility for assisting the applicant throughout a 
 32.23  given permit process.  The specialist may work with other 
 32.24  specialists to provide optimal service to the applicant. 
 32.25     Sec. 12.  Minnesota Statutes 2000, section 17.85, is 
 32.26  amended to read: 
 32.27     17.85 [LABORATORY SERVICES ACCOUNT.] 
 32.28     A laboratory services account is established in the 
 32.29  agricultural fund.  Payments for laboratory services performed 
 32.30  by the laboratory services division of the department of 
 32.31  agriculture must be deposited in the agricultural fund and 
 32.32  credited to the laboratory services account.  Money in the 
 32.33  account, including interest earned on the account, is annually 
 32.34  appropriated to the commissioner of agriculture to administer 
 32.35  the programs of the laboratory services division.  The 
 32.36  agriculture laboratory exists to provide analytical and 
 33.1   technical services in support of agency programs that protect 
 33.2   and enhance the state's agriculture, environment, and food chain.
 33.3   The laboratory may provide analytical and technical services for 
 33.4   a fee to any public or private entity as requested or required 
 33.5   to meet department objectives in support of Minnesota 
 33.6   agriculture and a national food safety system.  
 33.7      Sec. 13.  Minnesota Statutes 2000, section 18B.065, 
 33.8   subdivision 5, is amended to read: 
 33.9      Subd. 5.  [WASTE PESTICIDE COLLECTION ACCOUNT; 
 33.10  APPROPRIATION.] A waste pesticide account is established in 
 33.11  the state treasury agricultural fund.  Assessments collected 
 33.12  under subdivision 2 shall be deposited in the state treasury and 
 33.13  credited to the waste pesticide account.  Money in the account 
 33.14  is appropriated to the commissioner to pay for costs incurred to 
 33.15  implement the waste pesticide collection program. 
 33.16     Sec. 14.  Minnesota Statutes 2000, section 18E.04, 
 33.17  subdivision 2, is amended to read: 
 33.18     Subd. 2.  [PAYMENT OF CORRECTIVE ACTION COSTS.] (a) On 
 33.19  request by an eligible person, the board may pay the eligible 
 33.20  person for the reasonable and necessary cash disbursements for 
 33.21  corrective action costs incurred by the eligible person as 
 33.22  provided under subdivision 4 if the board determines: 
 33.23     (1) the eligible person pays the first $1,000 of the 
 33.24  corrective action costs; 
 33.25     (2) the eligible person provides the board with a sworn 
 33.26  affidavit and other convincing evidence that the eligible person 
 33.27  is unable to pay additional corrective action costs; 
 33.28     (3) the eligible person continues to assume responsibility 
 33.29  for carrying out the requirements of corrective action orders 
 33.30  issued to the eligible person or that are in effect; and 
 33.31     (4) the incident was reported as required in chapters 18B, 
 33.32  18C, and 18D; and 
 33.33     (5) the eligible person submits the application for 
 33.34  reimbursement of eligible corrective action costs to the 
 33.35  department: 
 33.36     (i) within three years of incurring the costs or approval 
 34.1   of a corrective action report, whichever is later; or 
 34.2      (ii) by June 1, 2004, in the case of costs incurred before 
 34.3   the effective date of this clause.  
 34.4      (b) An eligible person is not eligible for payment or 
 34.5   reimbursement and must refund amounts paid or reimbursed by the 
 34.6   board if false statements or misrepresentations are made in the 
 34.7   affidavit or other evidence submitted to the commissioner to 
 34.8   show an inability to pay corrective action costs.  
 34.9      (c) The board may pay the eligible person and one or more 
 34.10  designees by multiparty check. 
 34.11     Sec. 15.  Minnesota Statutes 2000, section 18E.04, 
 34.12  subdivision 4, is amended to read: 
 34.13     Subd. 4.  [REIMBURSEMENT PAYMENTS.] (a) The board shall pay 
 34.14  a person that is eligible for reimbursement or payment under 
 34.15  subdivisions 1, 2, and 3 from the agricultural chemical response 
 34.16  and reimbursement account for:  
 34.17     (1) 90 percent of the total reasonable and necessary 
 34.18  corrective action costs greater than $1,000 and less than or 
 34.19  equal to $100,000 $200,000; 
 34.20     (2) 100 percent of the total reasonable and necessary 
 34.21  corrective action costs greater than $100,000 but less than or 
 34.22  equal to $200,000; 
 34.23     (3) 80 percent of the total reasonable and necessary 
 34.24  corrective action costs greater than $200,000 but less than or 
 34.25  equal to $300,000; and 
 34.26     (4) (3) 60 percent of the total reasonable and necessary 
 34.27  corrective action costs greater than $300,000 but less than or 
 34.28  equal to $350,000.  
 34.29     (b) A reimbursement or payment may not be made until the 
 34.30  board has determined that the costs are reasonable and are for a 
 34.31  reimbursement of the costs that were actually incurred. 
 34.32     (c) The board may make periodic payments or reimbursements 
 34.33  as corrective action costs are incurred upon receipt of invoices 
 34.34  for the corrective action costs. 
 34.35     (d) Money in the agricultural chemical response and 
 34.36  reimbursement account is appropriated to the commissioner to 
 35.1   make payments and reimbursements directed by the board under 
 35.2   this subdivision.  
 35.3      (e) The board may not make reimbursement greater than the 
 35.4   maximum allowed under paragraph (a) for all incidents on a 
 35.5   single site which: 
 35.6      (1) were not reported at the time of release but were 
 35.7   discovered and reported after July 1, 1989; and 
 35.8      (2) may have occurred prior to July 1, 1989, as determined 
 35.9   by the commissioner. 
 35.10     (f) The board may only reimburse an eligible person for 
 35.11  separate incidents within a single site if the commissioner 
 35.12  determines that each incident is completely separate and 
 35.13  distinct in respect of location within the single site or time 
 35.14  of occurrence. 
 35.15     Sec. 16.  Minnesota Statutes 2000, section 18E.04, 
 35.16  subdivision 5, is amended to read: 
 35.17     Subd. 5.  [REIMBURSEMENT OR PAYMENT DECISIONS.] (a) The 
 35.18  board may issue a letter of intent on whether a person is 
 35.19  eligible for payment or reimbursement.  The letter is not 
 35.20  binding on the board. 
 35.21     (b) The board must issue an order granting or denying a 
 35.22  request within 30 days following the board meeting at which the 
 35.23  board votes to grant or deny a request for reimbursement or for 
 35.24  payment under subdivision 1, 2, or 3. 
 35.25     (c) After an initial request is made for reimbursement, 
 35.26  notwithstanding subdivisions 1 to 4, the board may deny 
 35.27  additional requests for reimbursement. 
 35.28     (d)(1) An eligible person adversely affected by the board's 
 35.29  disapproval of a reimbursement or payment application under 
 35.30  paragraph (b) or a partial reimbursement under subdivision 3 
 35.31  may, within 60 days of receipt of the board's order, request a 
 35.32  hearing of determination before the board.  A request for a 
 35.33  hearing must be made in writing and specify the grounds for the 
 35.34  request.  
 35.35     (2) Within 30 days of the receipt of a request for a 
 35.36  hearing under clause (1), the eligible person must be notified 
 36.1   either as to the date of the hearing for determination or of the 
 36.2   denial of the request for a hearing.  Hearings must be scheduled 
 36.3   immediately following the next regularly scheduled board meeting 
 36.4   as determined by the notification letter.  
 36.5      (3) If a dispute related to the disapproval of a 
 36.6   reimbursement is not resolved after a hearing under clause (2), 
 36.7   or if a request is denied, the eligible person may appeal the 
 36.8   decision as a contested case hearing under chapter 14.  A 
 36.9   request for a contested case hearing must be submitted to the 
 36.10  board in writing within 30 days of the date of the hearing or 
 36.11  within 30 days of the receipt of notification of denial of the 
 36.12  hearing request under clause (2).  
 36.13     Sec. 17.  Minnesota Statutes 2000, section 28A.04, 
 36.14  subdivision 1, is amended to read: 
 36.15     Subdivision 1.  [APPLICATION; DATE OF ISSUANCE.] (a) No 
 36.16  person shall engage in the business of manufacturing, 
 36.17  processing, selling, handling, or storing food without having 
 36.18  first obtained from the commissioner a license for doing such 
 36.19  business.  Applications for such license shall be made to the 
 36.20  commissioner in such manner and time as required and upon such 
 36.21  forms as provided by the commissioner and shall contain the name 
 36.22  and address of the applicant, address or description of each 
 36.23  place of business, and the nature of the business to be 
 36.24  conducted at each place, and such other pertinent information as 
 36.25  the commissioner may require. 
 36.26     (b) A retail or wholesale food handler license shall be 
 36.27  issued for the period July 1 to June 30 following and shall be 
 36.28  renewed thereafter by the licensee on or before July 1 each 
 36.29  year, except that licenses for all mobile food concession units 
 36.30  and retail mobile units shall be issued for the period April 1 
 36.31  to March 31, and shall be renewed thereafter by the licensee on 
 36.32  or before April 1 each year.  A license for a food broker or for 
 36.33  a food processor or manufacturer shall be issued for the period 
 36.34  January 1 to December 31 following and shall be renewed 
 36.35  thereafter by the licensee on or before January 1 of each year, 
 36.36  except that a license for a wholesale food processor or 
 37.1   manufacturer operating only at the state fair shall be issued 
 37.2   for the period July 1 to June 30 following and shall be renewed 
 37.3   thereafter by the licensee on or before July 1 of each year.  A 
 37.4   penalty for a late renewal shall be assessed in accordance with 
 37.5   section 28A.08. 
 37.6      (c) A person applying for a new license up to 14 calendar 
 37.7   days before the effective date of the new license period under 
 37.8   paragraph (b) must be issued a license for the 14 days and the 
 37.9   next license year as a single license and pay a single license 
 37.10  fee as if the 14 days were part of the upcoming license period. 
 37.11     Sec. 18.  Minnesota Statutes 2000, section 32.394, 
 37.12  subdivision 8e, is amended to read: 
 37.13     Subd. 8e.  [FARM BULK MILK PICK-UP TANKERS.] Farm bulk milk 
 37.14  pick-up tankers, milk transports, and tankers used to transport 
 37.15  milk products must be inspected and obtain a permit issued by 
 37.16  the commissioner annually by July 1.  The owner or operator must 
 37.17  pay a $25 permit fee per tanker to the commissioner.  The 
 37.18  commissioner may appoint such persons as the commissioner deems 
 37.19  qualified to make inspections. 
 37.20     Sec. 19.  Minnesota Statutes 2000, section 38.02, 
 37.21  subdivision 1, is amended to read: 
 37.22     Subdivision 1.  [PRO RATA DISTRIBUTION; CONDITIONS.] 
 37.23  (1) (a) Money appropriated to aid county and district 
 37.24  agricultural societies and associations shall be distributed 
 37.25  among all county and district agricultural societies or 
 37.26  associations in the state pro rata, upon condition that each of 
 37.27  them has complied with the conditions specified in clause 
 37.28  (2) paragraph (b). 
 37.29     (2) (b) To be eligible to participate in such a 
 37.30  distribution under paragraph (a), each such an agricultural 
 37.31  society or association (a) shall must:  (1) have held an annual 
 37.32  fair for each of the three years last past, unless prevented 
 37.33  from doing so because of a calamity or an epidemic declared by 
 37.34  the board of health as defined in section 145A.02, subdivision 
 37.35  2, or the state commissioner of health to exist; (b) shall (2) 
 37.36  have an annual membership of 25 or more; (c) shall (3) have paid 
 38.1   out to exhibitors for premiums awarded at the last fair held a 
 38.2   sum not less than the amount to be received from the state; (d) 
 38.3   shall (4) have published and distributed not less than three 
 38.4   weeks before the opening day of the fair a premium list, listing 
 38.5   all items or articles on which premiums are offered and the 
 38.6   amounts of such premiums and shall have paid premiums pursuant 
 38.7   to the amount shown for each article or item to be exhibited; 
 38.8   provided that premiums for school exhibits may be advertised in 
 38.9   the published premium list by reference to a school premium list 
 38.10  prepared and circulated during the preceding school year; and 
 38.11  shall have collected all fees charged for entering an exhibit at 
 38.12  the time the entry was made and in accordance with schedule of 
 38.13  entry fees to be charged as published in the premium list; (e) 
 38.14  shall (5) have paid not more than one premium on each article or 
 38.15  item exhibited, excluding championship or sweepstake awards, and 
 38.16  excluding the payment of open class premium awards to 4H Club 
 38.17  exhibits which at this same fair had won a first prize award in 
 38.18  regular 4H Club competition; (f) shall and (6) have submitted 
 38.19  its records and annual report to the commissioner of agriculture 
 38.20  on a form provided by the commissioner of agriculture, on or 
 38.21  before the first day of November of the current year. 
 38.22     (3) (c) All payments authorized under the provisions of 
 38.23  this chapter shall be made only upon the presentation by the 
 38.24  commissioner of agriculture with the commissioner of finance of 
 38.25  a statement of premium allocations.  As used herein the term 
 38.26  premium shall mean the cash award paid to an exhibitor for the 
 38.27  merit of an exhibit of livestock, livestock products, grains, 
 38.28  fruits, flowers, vegetables, articles of domestic science, 
 38.29  handicrafts, hobbies, fine arts, and articles made by school 
 38.30  pupils, or the cash award paid to the merit winner of events 
 38.31  such as 4H Club or Future Farmer Contest, Youth Group Contests, 
 38.32  school spelling contests and school current events contests, the 
 38.33  award corresponding to the amount offered in the advertised 
 38.34  premium list referred to in schedule 2.  Payments of awards for 
 38.35  horse races, ball games, musical contests, talent contests, 
 38.36  parades, and for amusement features for which admission is 
 39.1   charged, are specifically excluded from consideration as 
 39.2   premiums within the meaning of that term as used herein.  
 39.3      (d) Upon receipt of the statement by the commissioner of 
 39.4   agriculture, it shall be the duty of the commissioner of finance 
 39.5   to draw a voucher in favor of the agricultural society or 
 39.6   association for the amount to which it is entitled under the 
 39.7   provisions of this chapter, which amount shall be computed as 
 39.8   follows:  On the first $750 $1,000 premiums paid by each society 
 39.9   or association, such society or association shall receive 100 
 39.10  percent reimbursement; on the second $750 $1,000 premiums paid, 
 39.11  80 percent; on the third $750 $1,000 premiums paid, 60 percent; 
 39.12  and on any sum in excess of $2,250 $3,000, 40 percent. 
 39.13     (4) (e) If the total amount of state aid to which the 
 39.14  agricultural societies and associations are entitled under the 
 39.15  provisions of this chapter exceeds the amount of the 
 39.16  appropriation therefor, the amounts to which the societies or 
 39.17  associations are entitled shall be prorated so that the total 
 39.18  payments by the state will not exceed the appropriation.  
 39.19     Sec. 20.  Minnesota Statutes 2000, section 41A.09, 
 39.20  subdivision 2a, is amended to read: 
 39.21     Subd. 2a.  [DEFINITIONS.] For the purposes of this 
 39.22  section and section 41A.10, the terms defined in this 
 39.23  subdivision have the meanings given them. 
 39.24     (a) "Ethanol" means fermentation ethyl alcohol derived from 
 39.25  agricultural products, including potatoes, cereal, grains, 
 39.26  cheese whey, and sugar beets; forest products; or other 
 39.27  renewable resources, including residue and waste generated from 
 39.28  the production, processing, and marketing of agricultural 
 39.29  products, forest products, and other renewable resources, that: 
 39.30     (1) meets all of the specifications in ASTM specification D 
 39.31  4806-88; and 
 39.32     (2) is denatured as specified in Code of Federal 
 39.33  Regulations, title 27, parts 20 and 21. 
 39.34     (b) "Wet alcohol" means agriculturally derived fermentation 
 39.35  ethyl alcohol having a purity of at least 50 percent but less 
 39.36  than 99 percent. 
 40.1      (c) "Anhydrous alcohol" means fermentation ethyl alcohol 
 40.2   derived from agricultural products as described in paragraph 
 40.3   (a), but that does not meet ASTM specifications or is not 
 40.4   denatured and is shipped in bond for further processing. 
 40.5      (d) "Ethanol plant" means a plant at which ethanol, 
 40.6   anhydrous alcohol, or wet alcohol is produced. 
 40.7      Sec. 21.  [41A.10] [SECOND-GENERATION ETHANOL DEVELOPMENT 
 40.8   PROGRAM.] 
 40.9      Subdivision 1.  [DEVELOPMENT HISTORY, GOALS.] (a) The 
 40.10  legislature recognizes the success of the original Minnesota 
 40.11  ethanol development program, and its contribution to rural 
 40.12  economic development, cleaner air throughout the state, and 
 40.13  reduced dependence on imported fuels.  Several ethanol 
 40.14  production plants participating in the original producer payment 
 40.15  program are nearing the end of their ten-year period of 
 40.16  eligibility for payments.  It is the intent of the legislature 
 40.17  to support the second-generation ethanol development program 
 40.18  with the appropriations no longer needed to support facilities 
 40.19  developed under the original program. 
 40.20     (b) The goals of the second-generation ethanol development 
 40.21  program are to demonstrate efficient utilization of 
 40.22  nontraditional feedstocks for the production of ethanol in 
 40.23  association with the commercial-scale extraction of grain germ 
 40.24  from whole grains and to provide the benefits of ethanol 
 40.25  production facilities to geographic regions of the state where 
 40.26  plants do not currently exist. 
 40.27     Subd. 2.  [PREAPPROVAL BY COMMISSIONER.] To be eligible for 
 40.28  grants, loans, and producer payments under the second-generation 
 40.29  ethanol development program, a proposer must receive 
 40.30  preconstruction approval from the commissioner for a planned 
 40.31  second-generation ethanol plant and the associated germ 
 40.32  extraction facility.  The application for approval must be 
 40.33  submitted to the commissioner at least 90 days before 
 40.34  construction begins on the facilities.  The commissioner shall 
 40.35  deny or approve a properly completed application within 30 days 
 40.36  of receipt.  An approval, if granted, must include certification 
 41.1   by the commissioner of the maximum plant production for which 
 41.2   the ethanol producer credit may be paid, but not exceeding 
 41.3   15,000,000 gallons of ethanol per year.  An approval constitutes 
 41.4   commitment by the state to quarterly payments from the ethanol 
 41.5   producer payment program, subject to adequate appropriations, 
 41.6   and, if stated, may also constitute commitment to an ethanol 
 41.7   production facility loan under section 41B.044, a grant for a 
 41.8   grain germ extraction research project, or both. 
 41.9      Subd. 3.  [LOCATION OF FIRST TWO SECOND-GENERATION ETHANOL 
 41.10  PLANTS.] The first two second-generation ethanol plants approved 
 41.11  by the commissioner after the effective date of this act must be 
 41.12  located (1) in west central Minnesota and (2) in northwestern 
 41.13  Minnesota.  The plants must be located not less than one mile 
 41.14  outside the corporate limits of a statutory or home rule charter 
 41.15  city. 
 41.16     Subd. 4.  [PRODUCER PAYMENTS.] (a) An ethanol producer 
 41.17  approved for producer payments under subdivision 2 may apply to 
 41.18  the commissioner for cash payments for ethanol production within 
 41.19  30 days after the end of each calendar quarter.  The claim must 
 41.20  cover ethanol production during the preceding three months. 
 41.21     (b) The commissioner shall make payments from available 
 41.22  appropriations by 45 days after the close of each calendar 
 41.23  quarter.  The total quarterly payment to a producer under this 
 41.24  section may not exceed $750,000. 
 41.25     (c) Notwithstanding the quarterly payment limits of 
 41.26  paragraph (b), the commissioner shall make an additional payment 
 41.27  in the eighth quarter of each fiscal biennium to a 
 41.28  second-generation ethanol producer for the lesser of:  (1) 20 
 41.29  cents per gallon of production in the eighth quarter of the 
 41.30  biennium that is greater than 3,750,000 gallons; or (2) the 
 41.31  total amount of payments lost during the first seven quarters of 
 41.32  the biennium due to plant outages, repair, or major 
 41.33  maintenance.  Total payments to a second-generation ethanol 
 41.34  producer in a fiscal biennium, including any payment under this 
 41.35  paragraph, must not exceed the total amount the producer's 
 41.36  certified production eligibility.  
 42.1      (d) An ethanol producer is eligible for producer payments 
 42.2   under this section for production during 40 consecutive calendar 
 42.3   quarters. 
 42.4      (e) A second-generation ethanol producer payment account is 
 42.5   established in the agricultural fund.  Money in the account is 
 42.6   appropriated to the commissioner to make ethanol producer 
 42.7   payments for facilities that begin production after July 1, 2002.
 42.8      Subd. 5.  [GRAIN GERM EXTRACTION RESEARCH AND DEMONSTRATION 
 42.9   GRANTS.] The commissioner may provide a grant, from money 
 42.10  appropriated for this purpose, for a research and demonstration 
 42.11  project associated with a second-generation ethanol plant that 
 42.12  advances commercial-scale extraction of the germ component of 
 42.13  grains, including corn, wheat, and barley. 
 42.14     Sec. 22.  Minnesota Statutes 2000, section 103B.3369, 
 42.15  subdivision 5, is amended to read: 
 42.16     Subd. 5.  [FINANCIAL ASSISTANCE.] (a) The board may award 
 42.17  grants to watershed management organizations in the seven-county 
 42.18  metropolitan area or counties to carry out water resource 
 42.19  protection and management programs identified as priorities in 
 42.20  comprehensive local water plans.  Grants may be used to employ 
 42.21  persons and to obtain and use information necessary to: 
 42.22     (1) develop comprehensive local water plans under sections 
 42.23  103B.255 and 103B.311 that have not received state funding for 
 42.24  water resources planning as provided for in Laws 1987, chapter 
 42.25  404, section 30, subdivision 5, clause (a); 
 42.26     (2) revise comprehensive local water plans under section 
 42.27  103B.201; and 
 42.28     (3) implement comprehensive local water plans.  
 42.29  A base grant shall be awarded to a county that levies a water 
 42.30  implementation tax at a rate, which shall be determined by the 
 42.31  board.  The minimum amount of the water implementation tax shall 
 42.32  be a tax rate times the adjusted net tax capacity of the county 
 42.33  for the preceding year.  The rate shall be the rate, rounded to 
 42.34  the nearest .001 of a percent, that, when applied to the 
 42.35  adjusted net tax capacity for all counties, raises the amount of 
 42.36  $1,500,000.  The base grant will be in an amount equal to 
 43.1   $37,500 less the amount raised by that levy.  If the amount 
 43.2   necessary to implement the local water plan for the county is 
 43.3   less than $37,500, the amount of the base grant shall be the 
 43.4   amount that, when added to the levy amount, equals the amount 
 43.5   required to implement the plan.  For counties where the tax rate 
 43.6   generates an amount equal to or greater than $18,750, the base 
 43.7   grant shall be in an amount equal to $18,750. 
 43.8      (b) For a county that is approved to become a delegated 
 43.9   county for permitting of animal lots under section 116.07, 
 43.10  subdivision 7, the board may provide a grant under paragraph (a) 
 43.11  that constitutes retroactive reimbursement for feedlot 
 43.12  activities performed by the county from the date of approval by 
 43.13  the county board until the beginning of the next annual grant 
 43.14  funding cycle. 
 43.15     Sec. 23.  Minnesota Statutes 2000, section 116.07, 
 43.16  subdivision 7, is amended to read: 
 43.17     Subd. 7.  [COUNTIES; PROCESSING OF APPLICATIONS FOR ANIMAL 
 43.18  LOT PERMITS.] Any Minnesota county board may, by resolution, 
 43.19  with approval of the pollution control agency, assume 
 43.20  responsibility for processing applications for permits required 
 43.21  by the pollution control agency under this section for livestock 
 43.22  feedlots, poultry lots, or other animal lots.  The 
 43.23  responsibility for permit application processing, if assumed by 
 43.24  a county, may be delegated by the county board to any an 
 43.25  appropriate county officer or employee, an appropriate officer 
 43.26  or employee of a contiguous county, an appropriate employee of 
 43.27  another governmental unit, or a qualified employee of an 
 43.28  institution of higher education.  
 43.29     (a) For the purposes of this subdivision, the term 
 43.30  "processing" includes: 
 43.31     (1) the distribution to applicants of forms provided by the 
 43.32  pollution control agency; 
 43.33     (2) the receipt and examination of completed application 
 43.34  forms, and the certification, in writing, to the pollution 
 43.35  control agency either that the animal lot facility for which a 
 43.36  permit is sought by an applicant will comply with applicable 
 44.1   rules and standards, or, if the facility will not comply, the 
 44.2   respects in which a variance would be required for the issuance 
 44.3   of a permit; and 
 44.4      (3) rendering in cooperation with the commissioner of 
 44.5   agriculture, providing to applicants, upon request, and at no 
 44.6   cost if the applicant is proposing a feedlot with a capacity of 
 44.7   under 500 animal units, the services of a feedlot permit 
 44.8   specialist to provide assistance necessary for the proper and 
 44.9   timely completion of an application the permit process, 
 44.10  including assistance with local and state applications, public 
 44.11  hearings, and appeals. 
 44.12     (b) For the purposes of this subdivision, the term 
 44.13  "processing" may include, at the option of the county board, 
 44.14  issuing, denying, modifying, imposing conditions upon, or 
 44.15  revoking permits pursuant to the provisions of this section or 
 44.16  rules promulgated pursuant to it, subject to review, suspension, 
 44.17  and reversal by the pollution control agency.  The pollution 
 44.18  control agency shall, after written notification, have 15 days 
 44.19  to review, suspend, modify, or reverse the issuance of the 
 44.20  permit.  After this period, the action of the county board is 
 44.21  final, subject to appeal as provided in chapter 14.  For permit 
 44.22  applications filed after October 1, 2001, section 15.99 applies 
 44.23  to feedlot permits issued by the agency or a county pursuant to 
 44.24  this subdivision. 
 44.25     (c) For the purpose of administration of rules adopted 
 44.26  under this subdivision, the commissioner and the agency may 
 44.27  provide exceptions for cases where the owner of a feedlot has 
 44.28  specific written plans to close the feedlot within five years.  
 44.29  These exceptions include waiving requirements for major capital 
 44.30  improvements. 
 44.31     (d) For purposes of this subdivision, a discharge caused by 
 44.32  an extraordinary natural event such as a precipitation event of 
 44.33  greater magnitude than the 25-year, 24-hour event, tornado, or 
 44.34  flood in excess of the 100-year flood is not a "direct discharge 
 44.35  of pollutants." 
 44.36     (e) In adopting and enforcing rules under this subdivision, 
 45.1   the commissioner shall cooperate closely with other governmental 
 45.2   agencies. 
 45.3      (f) The pollution control agency shall work with the 
 45.4   Minnesota extension service, the department of agriculture, the 
 45.5   board of water and soil resources, producer groups, local units 
 45.6   of government, as well as with appropriate federal agencies such 
 45.7   as the Natural Resources Conservation Service and the Farm 
 45.8   Service Agency, to notify and educate producers of rules under 
 45.9   this subdivision at the time the rules are being developed and 
 45.10  adopted and at least every two years thereafter. 
 45.11     (g) The pollution control agency shall adopt rules 
 45.12  governing the issuance and denial of permits for livestock 
 45.13  feedlots, poultry lots or other animal lots pursuant to this 
 45.14  section.  A feedlot permit is not required for livestock 
 45.15  feedlots with more than ten but less than 50 animal units; 
 45.16  provided they are not in shoreland areas.  A livestock feedlot 
 45.17  permit does not become required solely because of a change in 
 45.18  the ownership of the buildings, grounds, or feedlot.  These 
 45.19  rules apply both to permits issued by counties and to permits 
 45.20  issued by the pollution control agency directly.  
 45.21     (h) The pollution control agency shall exercise supervising 
 45.22  authority with respect to the processing of animal lot permit 
 45.23  applications by a county. 
 45.24     (i) Any new rules or amendments to existing rules proposed 
 45.25  under the authority granted in this subdivision, or to implement 
 45.26  new fees on animal feedlots, must be submitted to the members of 
 45.27  legislative policy and finance committees with jurisdiction over 
 45.28  agriculture and the environment prior to final adoption.  The 
 45.29  rules must not become effective until 90 days after the proposed 
 45.30  rules are submitted to the members.  
 45.31     (j) Until new rules are adopted that provide for plans for 
 45.32  manure storage structures, any plans for a liquid manure storage 
 45.33  structure must be prepared or approved by a registered 
 45.34  professional engineer or a United States Department of 
 45.35  Agriculture, Natural Resources Conservation Service employee. 
 45.36     (k) A county may adopt by ordinance standards for animal 
 46.1   feedlots that are more stringent than standards in pollution 
 46.2   control agency rules. 
 46.3      (l) After January 1, 2001, a county that has not accepted 
 46.4   delegation of the feedlot permit program must hold a public 
 46.5   meeting prior to the agency issuing a feedlot permit for a 
 46.6   feedlot facility with 300 or more animal units, unless another 
 46.7   public meeting has been held with regard to the feedlot facility 
 46.8   to be permitted. 
 46.9      (m) After the proposed rules published in the State 
 46.10  Register, volume 24, number 25, are finally adopted, the agency 
 46.11  may not impose additional conditions as a part of a feedlot 
 46.12  permit, unless specifically required by law or agreed to by the 
 46.13  feedlot operator. 
 46.14     (n) For the purposes of feedlot permitting, a discharge 
 46.15  from land-applied manure or a manure stockpile that is managed 
 46.16  according to agency rule must not be subject to a fine for a 
 46.17  discharge violation.  
 46.18     (o) For the purposes of feedlot permitting, manure that is 
 46.19  land applied, or a manure stockpile that is managed according to 
 46.20  agency rule, must not be considered a discharge into waters of 
 46.21  the state, unless the discharge is to waters of the state, as 
 46.22  defined by section 103G.005, subdivision 17, except type 1 or 
 46.23  type 2 wetlands, as defined in section 103G.005, subdivision 
 46.24  17b, and does not meet discharge standards established for 
 46.25  feedlots under agency rule. 
 46.26     (p) Unless the upgrade is needed to correct an immediate 
 46.27  public health threat under section 145A.04, subdivision 8, the 
 46.28  agency may not require a feedlot operator: 
 46.29     (1) to spend more than $3,000 to upgrade an existing 
 46.30  feedlot with less than 300 animal units unless cost-share money 
 46.31  is available to the feedlot operator for 75 percent of the cost 
 46.32  of the upgrade; or 
 46.33     (2) to spend more than $10,000 to upgrade an existing 
 46.34  feedlot with between 300 and 500 animal units, unless cost-share 
 46.35  money is available to the feedlot operator for 75 percent of the 
 46.36  cost of the upgrade or $50,000, whichever is less. 
 47.1      Sec. 24.  Minnesota Statutes 2000, section 116O.09, 
 47.2   subdivision 1a, is amended to read: 
 47.3      Subd. 1a.  [BOARD OF DIRECTORS.] The board of directors of 
 47.4   the agricultural utilization research institute is comprised of: 
 47.5      (1) the chairs of the senate agriculture and rural 
 47.6   development committee and the house of representatives 
 47.7   agriculture and rural development committee; 
 47.8      (2) two representatives of statewide farm organizations; 
 47.9      (3) two representatives of agribusiness, one of whom is a 
 47.10  member of the Minnesota Technology, Inc. board representing 
 47.11  agribusiness; and 
 47.12     (4) three representatives of the commodity promotion 
 47.13  councils; and 
 47.14     (5) the commissioner of agriculture. 
 47.15     A member of the board of directors under clauses (1) to 
 47.16  (4) (5) may designate a permanent or temporary replacement 
 47.17  member representing the same constituency. 
 47.18     Sec. 25.  Minnesota Statutes 2000, section 169.871, 
 47.19  subdivision 1, is amended to read: 
 47.20     Subdivision 1.  [CIVIL LIABILITY.] (a) The owner or lessee 
 47.21  of a vehicle that is operated with a gross weight in excess of a 
 47.22  weight limit imposed under sections 169.825 and 169.832 to 
 47.23  169.851 and 169.87 or a shipper who ships or tenders goods for 
 47.24  shipment in a single truck or combination vehicle that exceeds a 
 47.25  weight limit imposed under sections 169.825 and 169.832 to 
 47.26  169.851 and 169.87 is liable for a civil penalty as follows: 
 47.27     (1) if the total gross excess weight is not more than 1,000 
 47.28  pounds, one cent per pound for each pound in excess of the legal 
 47.29  limit; 
 47.30     (2) if the total gross excess weight is more than 1,000 
 47.31  pounds but not more than 3,000 pounds, $10 plus five cents per 
 47.32  pound for each pound in excess of 1,000 pounds; 
 47.33     (3) if the total gross excess weight is more than 3,000 
 47.34  pounds but not more than 5,000 pounds, $110 plus ten cents per 
 47.35  pound for each pound in excess of 3,000 pounds; 
 47.36     (4) if the total gross excess weight is more than 5,000 
 48.1   pounds but not more than 7,000 pounds, $310 plus 15 cents per 
 48.2   pound for each pound in excess of 5,000 pounds; 
 48.3      (5) if the total gross excess weight is more than 7,000 
 48.4   pounds, $610 plus 20 cents per pound for each pound in excess of 
 48.5   7,000 pounds. 
 48.6      (b) Any penalty imposed upon a defendant under this 
 48.7   subdivision shall not exceed the penalty prescribed by this 
 48.8   subdivision.  Any fine paid by the defendant in a criminal 
 48.9   overweight action that arose from the same overweight violation 
 48.10  shall be applied toward payment of the civil penalty under this 
 48.11  subdivision.  A peace officer or department of public safety 
 48.12  employee described in section 299D.06 who cites a driver for a 
 48.13  violation of the weight limitations established by sections 
 48.14  169.81 to 169.851 and 169.87 shall give written notice to the 
 48.15  driver that the driver or another may also be liable for the 
 48.16  civil penalties provided herein in the same or separate 
 48.17  proceedings.  
 48.18     (c) A penalty imposed upon the owner or lessee of a vehicle 
 48.19  that is based on violations identified by the use of shippers 
 48.20  weight records under section 169.872, must not exceed an 
 48.21  aggregate of $10,000 for the 14 days immediately prior to the 
 48.22  imposition of the penalty.  
 48.23     Sec. 26.  Minnesota Statutes 2000, section 169.872, 
 48.24  subdivision 1, is amended to read: 
 48.25     Subdivision 1.  [RECORD KEEPING.] (a) A person who weighs 
 48.26  goods before or after unloading or a person who loads or unloads 
 48.27  goods on the basis of liquid volume measure shall keep a written 
 48.28  record of the origin, weight and composition of each shipment, 
 48.29  the date of loading or receipt, the name and address of the 
 48.30  shipper, the total number of axles on the vehicle or combination 
 48.31  of vehicles, and the registration number of the power unit or 
 48.32  some other means of identification by which the shipment was 
 48.33  transported.  The record shall be retained for 30 14 days and 
 48.34  shall be open to inspection and copying by a state law 
 48.35  enforcement officer or motor transport representative, except 
 48.36  state conservation officers, upon demand.  No search warrant is 
 49.1   required to inspect or copy the record.  
 49.2      (b) This subdivision does not apply to a person weighing 
 49.3   goods who is not involved in the shipping, receiving and 
 49.4   transporting of those goods, or to a person weighing raw and 
 49.5   unfinished farm products transported in a single unit vehicle 
 49.6   with not more than three axles or by a trailer towed by a farm 
 49.7   tractor when the transportation is the first haul of the product.
 49.8      Sec. 27.  [REFUND OF CERTAIN DAIRY FINES.] 
 49.9      For civil fines levied under Minnesota Statutes 1999 
 49.10  Supplement, section 32.21, subdivision 4, paragraph (d), for 
 49.11  violations that occurred between April 13, 2000, and August 1, 
 49.12  2000, the commissioner of agriculture shall waive the amount of 
 49.13  the civil fine that is above the amount required under Minnesota 
 49.14  Statutes 2000, section 32.21, subdivision 4, paragraph (d).  The 
 49.15  commissioner shall reimburse the amount waived to dairy 
 49.16  producers who have paid civil fines for violations that occurred 
 49.17  between April 13, 2000, and August 1, 2000. 
 49.18     Sec. 28.  [REPEALER.] 
 49.19     Minnesota Statutes 2000, section 31.11, subdivision 2, is 
 49.20  repealed.