1.1                          A bill for an act 
  1.2             relating to agriculture; extending certain advisory 
  1.3             committees and a review board; changing provisions of 
  1.4             the value-added agricultural product processing and 
  1.5             marketing grant program; eliminating the late fee for 
  1.6             renewal of a license to use the Minnesota grown logo 
  1.7             or labeling; clarifying a term related to the 
  1.8             Minnesota grown matching account; providing for 
  1.9             uniformity with certain federal dairy regulations; 
  1.10            changing provisions of the shared savings loan program 
  1.11            and the sustainable agriculture demonstration grant 
  1.12            program; changing certain shell egg regulations; 
  1.13            changing financing provisions of a cooperative meat 
  1.14            inspection program; clarifying the definition of 
  1.15            agricultural land; modifying provisions relating to 
  1.16            the rural finance authority; prohibiting tampering 
  1.17            with clock-hour meters on farm tractors; prescribing 
  1.18            criminal and civil penalties; providing a coyote 
  1.19            conflict management option; suspending a rule; 
  1.20            repealing obsolete or unnecessary provisions; amending 
  1.21            Minnesota Statutes 2000, sections 15.059, subdivision 
  1.22            5a; 17.101, subdivision 5; 17.102, subdivision 3; 
  1.23            17.109, subdivision 3; 17.115; 17.116; 17.136; 
  1.24            18B.305, subdivision 3; 28A.20; 29.23, subdivisions 2, 
  1.25            3, 4; 29.237; 31.101, by adding a subdivision; 31A.21, 
  1.26            subdivision 2; 32.21, subdivision 4; 32.394, 
  1.27            subdivision 4; 32.415; 32.475, subdivision 2; 32.70, 
  1.28            subdivisions 7, 8; 41B.025, subdivision 1; 41B.03, 
  1.29            subdivision 2; 41B.036; 41B.043, subdivisions 1b, 2; 
  1.30            41B.046, subdivision 2; 97B.001, subdivision 1; 
  1.31            proposing coding for new law in Minnesota Statutes, 
  1.32            chapters 325E; 348; repealing Minnesota Statutes 2000, 
  1.33            sections 17.039; 17.042; 17.06; 17.07; 17.108; 17.139; 
  1.34            17.45; 17.4996; 17.76; 17.861; 17A.091, subdivision 1; 
  1.35            17B.21; 17B.23; 17B.24; 17B.25; 17B.26; 17B.27; 
  1.36            18.205; 24.001; 24.002; 24.12; 24.131; 24.135; 24.141; 
  1.37            24.145; 24.151; 24.155; 24.161; 24.171; 24.175; 24.18; 
  1.38            24.181; 25.47; 27.185; 29.025; 29.049; 30.50; 30.51; 
  1.39            31.185; 31.73; 31B.07; 32.11; 32.12; 32.18; 32.19; 
  1.40            32.20; 32.203; 32.204; 32.206; 32.208; 32.471, 
  1.41            subdivision 1; 32.474; 32.481, subdivision 2; 32.529; 
  1.42            32.53; 32.531, subdivisions 1, 5, 6, 7; 32.5311; 
  1.43            32.5312; 32.532; 32.533; 32.534; 32.55, subdivisions 
  1.44            15, 16, 17; 33.001; 33.002; 33.01; 33.011; 33.02; 
  1.45            33.03; 33.031; 33.032; 33.06; 33.07; 33.08; 33.09; 
  1.46            33.091; 33.111; 35.04; 35.14; 35.84. 
  2.1   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.2      Section 1.  Minnesota Statutes 2000, section 15.059, 
  2.3   subdivision 5a, is amended to read: 
  2.4      Subd. 5a.  [LATER EXPIRATION.] Notwithstanding subdivision 
  2.5   5, the advisory councils and committees listed in this 
  2.6   subdivision do not expire June 30, 1997.  These groups expire 
  2.7   June 30, 2001, unless the law creating the group or this 
  2.8   subdivision specifies an earlier expiration date. 
  2.9      Investment advisory council, created in section 11A.08; 
  2.10     Intergovernmental information systems advisory council, 
  2.11  created in section 16B.42, expires June 30, 1999; 
  2.12     Feedlot and manure management advisory committee, created 
  2.13  in section 17.136; 
  2.14     Aquaculture advisory committee, created in section 17.49; 
  2.15     Dairy producers board, created in section 17.76; 
  2.16     Pesticide applicator education and examination review 
  2.17  board, created in section 18B.305; 
  2.18     Advisory seed potato certification task force, created in 
  2.19  section 21.112; 
  2.20     Food safety advisory committee, created in section 28A.20; 
  2.21     Minnesota organic advisory task force, created in section 
  2.22  31.95; 
  2.23     Public programs risk adjustment work group, created in 
  2.24  section 62Q.03; 
  2.25     Workers' compensation self-insurers' advisory committee, 
  2.26  created in section 79A.02; 
  2.27     Youth corps advisory committee, created in section 84.0887; 
  2.28     Iron range off-highway vehicle advisory committee, created 
  2.29  in section 85.013; 
  2.30     Mineral coordinating committee, created in section 93.002; 
  2.31     Game and fish fund citizen advisory committees, created in 
  2.32  section 97A.055; 
  2.33     Wetland heritage advisory committee, created in section 
  2.34  103G.2242; 
  2.35     Wastewater treatment technical advisory committee, created 
  2.36  in section 115.54; 
  3.1      Solid waste management advisory council, created in section 
  3.2   115A.12; 
  3.3      Nuclear waste council, created in section 116C.711; 
  3.4      Genetically engineered organism advisory committee, created 
  3.5   in section 116C.93; 
  3.6      Environment and natural resources trust fund advisory 
  3.7   committee, created in section 116P.06; 
  3.8      Child abuse prevention advisory council, created in section 
  3.9   119A.13; 
  3.10     Chemical abuse and violence prevention council, created in 
  3.11  section 119A.293; 
  3.12     Youth neighborhood centers advisory board, created in 
  3.13  section 119A.295; 
  3.14     Interagency coordinating council, created in section 
  3.15  125A.28, expires June 30, 1999; 
  3.16     Desegregation/integration advisory board, created in 
  3.17  section 124D.892; 
  3.18     Nonpublic education council, created in section 123B.445; 
  3.19     Permanent school fund advisory committee, created in 
  3.20  section 127A.30; 
  3.21     Indian scholarship committee, created in section 124D.84, 
  3.22  subdivision 2; 
  3.23     American Indian education committees, created in section 
  3.24  124D.80; 
  3.25     Summer scholarship advisory committee, created in section 
  3.26  124D.95; 
  3.27     Multicultural education advisory committee, created in 
  3.28  section 124D.894; 
  3.29     Male responsibility and fathering grants review committee, 
  3.30  created in section 124D.33; 
  3.31     Library for the blind and physically handicapped advisory 
  3.32  committee, created in section 134.31; 
  3.33     Higher education advisory council, created in section 
  3.34  136A.031; 
  3.35     Student advisory council, created in section 136A.031; 
  3.36     Cancer surveillance advisory committee, created in section 
  4.1   144.672; 
  4.2      Maternal and child health task force, created in section 
  4.3   145.881; 
  4.4      State community health advisory committee, created in 
  4.5   section 145A.10; 
  4.6      Mississippi River Parkway commission, created in section 
  4.7   161.1419; 
  4.8      School bus safety advisory committee, created in section 
  4.9   169.435; 
  4.10     Advisory council on workers' compensation, created in 
  4.11  section 175.007; 
  4.12     Code enforcement advisory council, created in section 
  4.13  175.008; 
  4.14     Medical services review board, created in section 176.103; 
  4.15     Apprenticeship advisory council, created in section 178.02; 
  4.16     OSHA advisory council, created in section 182.656; 
  4.17     Health professionals services program advisory committee, 
  4.18  created in section 214.32; 
  4.19     Rehabilitation advisory council for the blind, created in 
  4.20  section 248.10; 
  4.21     American Indian advisory council, created in section 
  4.22  254A.035; 
  4.23     Alcohol and other drug abuse advisory council, created in 
  4.24  section 254A.04; 
  4.25     Medical assistance drug formulary committee, created in 
  4.26  section 256B.0625; 
  4.27     Home care advisory committee, created in section 256B.071; 
  4.28     Preadmission screening, alternative care, and home and 
  4.29  community-based services advisory committee, created in section 
  4.30  256B.0911; 
  4.31     Traumatic brain injury advisory committee, created in 
  4.32  section 256B.093; 
  4.33     Minnesota commission serving deaf and hard-of-hearing 
  4.34  people, created in section 256C.28; 
  4.35     American Indian child welfare advisory council, created in 
  4.36  section 260.835; 
  5.1      Juvenile justice advisory committee, created in section 
  5.2   268.29; 
  5.3      Northeast Minnesota economic development fund technical 
  5.4   advisory committees, created in section 298.2213; 
  5.5      Iron range higher education committee, created in section 
  5.6   298.2214; 
  5.7      Northeast Minnesota economic protection trust fund 
  5.8   technical advisory committee, created in section 298.297; 
  5.9      Advisory council on battered women and domestic abuse, 
  5.10  created in section 611A.34. 
  5.11     Sec. 2.  Minnesota Statutes 2000, section 17.101, 
  5.12  subdivision 5, is amended to read: 
  5.13     Subd. 5.  [VALUE-ADDED AGRICULTURAL PRODUCT PROCESSING AND 
  5.14  MARKETING GRANT PROGRAM.] (a) For purposes of this section: 
  5.15     (1) "agricultural commodity" means a material produced for 
  5.16  use in or as food, feed, seed, or fiber and includes crops for 
  5.17  fiber, food, oilseeds, seeds, livestock, livestock products, 
  5.18  dairy, dairy products, poultry, poultry products, and other 
  5.19  products or by-products of the farm produced for the same or 
  5.20  similar use, except ethanol; and 
  5.21     (2) "agricultural product processing facility" means land, 
  5.22  buildings, structures, fixtures, and improvements located or to 
  5.23  be located in Minnesota and used or operated primarily for the 
  5.24  processing or production of marketable products from 
  5.25  agricultural commodities produced in Minnesota.  
  5.26     (b) The commissioner shall establish and implement a 
  5.27  value-added agricultural product processing and marketing grant 
  5.28  program to help farmers finance new cooperatives that organize 
  5.29  for the purposes of operating agricultural product processing 
  5.30  facilities, forming marketing cooperatives, and for marketing 
  5.31  activities related to the sale and distribution of processed 
  5.32  agricultural products.  
  5.33     (c) To be eligible for this program a grantee must:  
  5.34     (1) be a cooperative organized under chapter 308A; 
  5.35     (2) certify that all of the control and equity in the 
  5.36  cooperative is from farmers or family farm corporations as 
  6.1   defined in section 500.24, subdivision 2, who are actively 
  6.2   engaged in agricultural commodity production; 
  6.3      (3) be operated primarily for the processing of 
  6.4   agricultural commodities produced in Minnesota; 
  6.5      (4) receive agricultural commodities produced primarily by 
  6.6   shareholders or members of the cooperative; and 
  6.7      (5) have no direct or indirect involvement in the 
  6.8   production of agricultural commodities.  
  6.9      (d) The commissioner may receive applications from and make 
  6.10  grants up to $50,000 for feasibility, marketing analysis, 
  6.11  assistance with organizational development, financing and 
  6.12  managing new cooperatives, product development, development of 
  6.13  business and marketing plans, and predesign of facilities 
  6.14  including site analysis, development of bid specifications, 
  6.15  preliminary blueprints and schematics, and completion of 
  6.16  purchase agreements and other necessary legal documents to 
  6.17  eligible cooperatives.  The commissioner shall give priority to 
  6.18  applicants who use the grants for planning costs related to an 
  6.19  application for financial assistance from the United States 
  6.20  Department of Agriculture, Rural Business - Cooperative Service. 
  6.21     Sec. 3.  Minnesota Statutes 2000, section 17.102, 
  6.22  subdivision 3, is amended to read: 
  6.23     Subd. 3.  [LICENSE.] A person may not use the Minnesota 
  6.24  grown logo or labeling without an annual license from the 
  6.25  commissioner.  The commissioner shall issue licenses for a fee 
  6.26  of $5.  The commissioner shall charge a late fee of $10 for 
  6.27  renewal of a license that has expired. 
  6.28     Sec. 4.  Minnesota Statutes 2000, section 17.109, 
  6.29  subdivision 3, is amended to read: 
  6.30     Subd. 3.  [APPROPRIATIONS MUST BE MATCHED BY PRIVATE 
  6.31  FUNDS.] Appropriations to the Minnesota grown matching account 
  6.32  may be expended only to the extent that they are matched with 
  6.33  contributions to the account from private sources on a basis of 
  6.34  $4 of the appropriation to each $1 of private contributions.  
  6.35  Matching funds are not available after the appropriation is 
  6.36  encumbered.  For the purposes of this subdivision, "private 
  7.1   contributions" includes, but is not limited to, advertising 
  7.2   revenue, listing fees, and revenues from the development and 
  7.3   sale of promotional materials. 
  7.4      Sec. 5.  Minnesota Statutes 2000, section 17.115, is 
  7.5   amended to read: 
  7.6      17.115 [SHARED SAVINGS LOAN PROGRAM.] 
  7.7      Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
  7.8   establish a shared savings loan program to provide loans that 
  7.9   enable farmers to adopt best management practices that emphasize 
  7.10  sufficiency and self-sufficiency in agricultural inputs, 
  7.11  including energy efficiency, reduction or improved management of 
  7.12  petroleum and chemical inputs, and increasing the energy 
  7.13  self-sufficiency of production by agricultural producers, and 
  7.14  environmental improvements. 
  7.15     Subd. 2.  [LOAN CRITERIA.] (a) The shared savings loan 
  7.16  program must provide loans for purchase of new or used 
  7.17  machinery, and installation of equipment, and for projects that 
  7.18  reduce or make more efficient farm energy use make environmental 
  7.19  improvements or enhance farm profitability.  Eligible loan uses 
  7.20  do not include seed, fertilizer, or fuel. 
  7.21     (b) Loans may not exceed $15,000 $25,000 per individual 
  7.22  applying for a loan and may not exceed $75,000 $100,000 for 
  7.23  loans to five four or more individuals on joint projects.  The 
  7.24  loan repayment period may be up to seven years as determined by 
  7.25  project cost and energy savings.  The interest on the loans is 
  7.26  six percent. 
  7.27     (c) Loans may only be made to residents of this state 
  7.28  engaged in farming.  
  7.29     Subd. 3.  [AWARDING OF LOANS.] (a) Applications for loans 
  7.30  must be made to the commissioner on forms prescribed by the 
  7.31  commissioner. 
  7.32     (b) The applications must be reviewed, ranked, and 
  7.33  recommended by a loan review panel appointed by the 
  7.34  commissioner.  The loan review panel shall consist of two 
  7.35  lenders with agricultural experience, two resident farmers of 
  7.36  the state using sustainable agriculture methods, two resident 
  8.1   farmers of the state using organic agriculture methods, a farm 
  8.2   management specialist, a representative from a post-secondary 
  8.3   education institution, and a chair from the department.  
  8.4      (c) The loan review panel shall rank applications according 
  8.5   to the following criteria: 
  8.6      (1) realize savings to the cost of agricultural production 
  8.7   and project savings to repay the cost of the loan; 
  8.8      (2) reduce or make more efficient use of energy or 
  8.9   inputs; and 
  8.10     (3) reduce production costs increase overall farm 
  8.11  profitability; and 
  8.12     (4) result in environmental benefits.  
  8.13     (d) A loan application must show that the loan can be 
  8.14  repaid by the applicant.  
  8.15     (e) The commissioner must consider the recommendations of 
  8.16  the loan review panel and may make loans for eligible projects.  
  8.17  Priority must be given based on the amount of savings realized 
  8.18  by adopting the practice implemented by the loan. 
  8.19     Subd. 4.  [ADMINISTRATION; INFORMATION DISSEMINATION.] The 
  8.20  amount in the revolving loan account is appropriated to the 
  8.21  commissioner to make loans under this section and administer the 
  8.22  loan program.  The interest on the money in the revolving loan 
  8.23  account and the interest on loans repaid to the state may be 
  8.24  spent by the commissioner for administrative expenses.  The 
  8.25  commissioner shall collect and disseminate information relating 
  8.26  to projects for which loans are given under this section. 
  8.27     Subd. 5.  [FARM MANURE DIGESTER TECHNOLOGY.] Appropriations 
  8.28  in Laws 1998, chapter 401, section 6, must be used for revolving 
  8.29  loans for demonstration projects of farm manure digester 
  8.30  technology.  Notwithstanding the limitations of subdivision 2, 
  8.31  paragraphs (b) and (c), loans under this subdivision are 
  8.32  no-interest loans in principal amounts not to exceed $200,000 
  8.33  and may be made to any resident of this state.  Loans for one or 
  8.34  more projects must be made only after the commissioner seeks 
  8.35  applications.  Loans under this program may be used as a match 
  8.36  for federal loans or grants.  Money repaid from loans must be 
  9.1   returned to the revolving fund for future projects. 
  9.2      Sec. 6.  Minnesota Statutes 2000, section 17.116, is 
  9.3   amended to read: 
  9.4      17.116 [SUSTAINABLE AGRICULTURE DEMONSTRATION GRANTS.] 
  9.5      Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
  9.6   agriculture shall establish a grant program for sustainable 
  9.7   agriculture methods that demonstrates best management practices, 
  9.8   including farm input reduction or management, enterprise 
  9.9   diversification including new crops and livestock, farm energy 
  9.10  efficiency, or usable on-farm energy production, or the transfer 
  9.11  of technologies that enhance the environment and farm 
  9.12  profitability.  The commissioner shall use the program to 
  9.13  demonstrate and publicize the energy efficiency, environmental 
  9.14  benefit, and profitability of sustainable agriculture techniques 
  9.15  or systems from production through marketing.  The grants must 
  9.16  fund research or demonstrations on farms of external input 
  9.17  reduction techniques or farm scale energy production methods 
  9.18  consistent with the program objectives. 
  9.19     Subd. 2.  [ELIGIBILITY.] (a) Grants may only be made to 
  9.20  farmers, educational institutions, individuals at educational 
  9.21  institutions, or nonprofit organizations residing or located in 
  9.22  the state for research or demonstrations on farms in the state. 
  9.23     (b) Grants may only be made for projects that show: 
  9.24     (1) the ability to maximize direct or indirect energy 
  9.25  savings or production; 
  9.26     (2) a positive effect or reduced adverse effect on the 
  9.27  environment; and 
  9.28     (3) increased profitability for the individual farm by 
  9.29  reducing costs or improving marketing opportunities. 
  9.30     Subd. 3.  [AWARDING OF GRANTS.] (a) Applications for grants 
  9.31  must be made to the commissioner on forms prescribed by the 
  9.32  commissioner. 
  9.33     (b) The applications must be reviewed, ranked, and 
  9.34  recommended by a technical review panel appointed by the 
  9.35  commissioner.  The technical review panel shall consist of a 
  9.36  soil scientist, an agronomist, a representative from a 
 10.1   post-secondary educational institution, an agricultural 
 10.2   marketing specialist, two resident farmers of the state using 
 10.3   sustainable agriculture methods, two resident farmers of the 
 10.4   state using organic agriculture methods, and a chair from the 
 10.5   department.  
 10.6      (c) The technical review panel shall rank applications 
 10.7   according to the following criteria: 
 10.8      (1) direct or indirect energy savings or production; 
 10.9      (2) environmental benefit; 
 10.10     (3) farm profitability; 
 10.11     (4) the number of farms able to apply the techniques or the 
 10.12  technology proposed; 
 10.13     (5) the effectiveness of the project as a demonstration; 
 10.14     (6) the immediate transferability of the project to farms; 
 10.15  and 
 10.16     (7) the ability of the project to accomplish its goals. 
 10.17     (d) The commissioner shall consider the recommendations of 
 10.18  the technical review panel and may award grants for eligible 
 10.19  projects.  Priority must be given to applicants who are farmers 
 10.20  or groups of farmers. 
 10.21     (e) Grants for eligible projects may not exceed $25,000 
 10.22  unless the portion above $25,000 is matched on an equal basis by 
 10.23  the applicant's cash or in-kind land use contribution.  Grant 
 10.24  funding of projects may not exceed $50,000 under this section, 
 10.25  but applicants may utilize other funding sources.  A portion of 
 10.26  each grant must be targeted for public information activities of 
 10.27  the project. 
 10.28     (f) A project may continue for up to three years.  
 10.29  Multiyear projects must be reevaluated by the technical review 
 10.30  panel and the commissioner before second or third year funding 
 10.31  is approved.  A project is limited to one grant for its funding. 
 10.32     Sec. 7.  Minnesota Statutes 2000, section 17.136, is 
 10.33  amended to read: 
 10.34     17.136 [ANIMAL FEEDLOTS; POLLUTION CONTROL; FEEDLOT AND 
 10.35  MANURE MANAGEMENT ADVISORY COMMITTEE.] 
 10.36     (a) The commissioner of agriculture and the commissioner of 
 11.1   the pollution control agency shall establish a feedlot and 
 11.2   manure management advisory committee to identify needs, goals, 
 11.3   and suggest policies for research, monitoring, and regulatory 
 11.4   activities regarding feedlot and manure management.  In 
 11.5   establishing the committee, the commissioner shall give first 
 11.6   consideration to members of the existing feedlot advisory group. 
 11.7      (b) The committee must include representation from beef, 
 11.8   dairy, pork, chicken, and turkey producer organizations.  The 
 11.9   committee shall not exceed 21 members, but, after June 30, 1999, 
 11.10  must include representatives from at least four environmental 
 11.11  organizations, eight livestock producers, four experts in soil 
 11.12  and water science, nutrient management, and animal husbandry, 
 11.13  one commercial solid manure applicator who is not a producer, 
 11.14  one commercial liquid manure applicator who is not a producer, 
 11.15  and one member from an organization representing local units of 
 11.16  government, and chairs of the senate and the house of 
 11.17  representatives committees that deal with agricultural policy or 
 11.18  the designees of the chairs.  In addition, the departments of 
 11.19  agriculture, health, and natural resources, the pollution 
 11.20  control agency, board of water and soil resources, soil and 
 11.21  water conservation districts, the federal Natural Resource 
 11.22  Conservation Service, the association of Minnesota counties, and 
 11.23  the Farm Service Agency shall serve on the committee as ex 
 11.24  officio nonvoting members. 
 11.25     (c) The advisory committee shall elect a chair and a 
 11.26  vice-chair from its members.  The department and the agency 
 11.27  shall provide staff support to the committee. 
 11.28     (d) The commissioner of agriculture and the commissioner of 
 11.29  the pollution control agency shall consult with the advisory 
 11.30  committee during the development of any policies, rules, or 
 11.31  funding proposals or recommendations relating to feedlots or 
 11.32  feedlot-related manure management. 
 11.33     (e) The commissioner of agriculture shall consult with the 
 11.34  advisory committee on establishing a list of manure management 
 11.35  research needs and priorities. 
 11.36     (f) The advisory committee shall advise the commissioners 
 12.1   on other appropriate matters. 
 12.2      (g) Nongovernment members of the advisory committee shall 
 12.3   receive expenses, in accordance with section 15.059, subdivision 
 12.4   6.  The advisory committee expires on June 30, 2001 2004. 
 12.5      Sec. 8.  Minnesota Statutes 2000, section 18B.305, 
 12.6   subdivision 3, is amended to read: 
 12.7      Subd. 3.  [PESTICIDE APPLICATOR EDUCATION AND EXAMINATION 
 12.8   REVIEW BOARD.] (a) The commissioner shall establish and chair a 
 12.9   pesticide applicator education and examination review board.  
 12.10  This board, consisting of 15 members, must meet at least once a 
 12.11  year before the initiation of pesticide educational planning 
 12.12  programs.  The purpose of the board is to discuss topics of 
 12.13  current concern that can be incorporated into pesticide 
 12.14  applicator training sessions and appropriate examinations.  This 
 12.15  board shall review and evaluate the various educational programs 
 12.16  recently conducted and recommend options to increase overall 
 12.17  effectiveness.  
 12.18     (b) Membership on this board must include applicators 
 12.19  representing various licensing categories, such as agriculture, 
 12.20  turf and ornamental, aerial, aquatic, and structural pest 
 12.21  control and private pesticide applicators, and other 
 12.22  governmental agencies, including the University of Minnesota, 
 12.23  the pollution control agency, department of health, department 
 12.24  of natural resources, and department of transportation.  
 12.25     (c) Membership on the board must include representatives 
 12.26  from environmental protection organizations. 
 12.27     (d) This board shall review licensing and certification 
 12.28  requirements for private, commercial, and noncommercial 
 12.29  applicators and provide a report to the commissioner with 
 12.30  recommendations by January 15, 1998.  This board shall review 
 12.31  category requirements and provide recommendations to the 
 12.32  commissioner.  This board expires on June 30, 2001 2004. 
 12.33     Sec. 9.  Minnesota Statutes 2000, section 28A.20, is 
 12.34  amended to read: 
 12.35     28A.20 [FOOD SAFETY ADVISORY COMMITTEE TASK FORCE.] 
 12.36     Subdivision 1.  [ESTABLISHMENT.] A food safety advisory 
 13.1   committee task force is established to advise the commissioner 
 13.2   and the legislature on food issues and food safety.  
 13.3      Subd. 2.  [MEMBERSHIP.] (a) The food safety advisory 
 13.4   committee task force consists of:  
 13.5      (1) the commissioner of agriculture; 
 13.6      (2) the commissioner of health; 
 13.7      (3) a representative of the United States Food and Drug 
 13.8   Administration; 
 13.9      (4) a representative of the United States Department of 
 13.10  Agriculture; 
 13.11     (5) a representative of the agricultural utilization 
 13.12  research institute; 
 13.13     (6) one person from the University of Minnesota 
 13.14  knowledgeable in food and food safety issues; and 
 13.15     (7) nine members appointed by the governor who are 
 13.16  interested in food and food safety, of whom: 
 13.17     (i) two persons are health or food professionals; 
 13.18     (ii) one person represents a statewide general farm 
 13.19  organization; 
 13.20     (iii) one person represents a local food inspection agency; 
 13.21  and 
 13.22     (iv) one person represents a food-oriented consumer group.  
 13.23     (b) Members shall serve without compensation.  Members 
 13.24  appointed by the governor shall serve four-year terms.  
 13.25     Subd. 3.  [ORGANIZATION.] (a) The committee task force 
 13.26  shall meet monthly or as determined by the chair.  
 13.27     (b) The members of the committee task force shall annually 
 13.28  elect a chair and other officers as they determine necessary.  
 13.29     Subd. 4.  [STAFF.] The commissioner of agriculture shall 
 13.30  provide support staff, office space, and administrative services 
 13.31  for the committee task force.  
 13.32     Subd. 5.  [DUTIES.] The committee task force shall:  
 13.33     (1) coordinate educational efforts about various aspects of 
 13.34  food safety; 
 13.35     (2) provide advice and coordination to state agencies as 
 13.36  requested by the agencies; 
 14.1      (3) serve as a source of information and referral for the 
 14.2   public, news media, and others concerned with food safety; and 
 14.3      (4) make recommendations to Congress, the legislature, and 
 14.4   others about appropriate action to improve food safety in the 
 14.5   state. 
 14.6      Subd. 6.  [EXPIRATION.] This section expires on June 
 14.7   30, 2001 2004. 
 14.8      Sec. 10.  Minnesota Statutes 2000, section 29.23, 
 14.9   subdivision 2, is amended to read: 
 14.10     Subd. 2.  [EQUIPMENT.] The commissioner shall also by rule 
 14.11  provide for minimum plant and equipment requirements for 
 14.12  candling, grading, handling and storing eggs, and shall define 
 14.13  candling.  Equipment in use before July 1, 1991, that does not 
 14.14  meet the design and fabrication requirements of this chapter may 
 14.15  remain in use if it is in good repair, capable of being 
 14.16  maintained in a sanitary condition, and capable of maintaining a 
 14.17  temperature of 50 45 degrees Fahrenheit (10 7 degrees Celsius) 
 14.18  or less. 
 14.19     Sec. 11.  Minnesota Statutes 2000, section 29.23, 
 14.20  subdivision 3, is amended to read: 
 14.21     Subd. 3.  [EGG TEMPERATURE.] Eggs must be held at a 
 14.22  temperature not to exceed 50 45 degrees Fahrenheit (10 7 degrees 
 14.23  Celsius) after being received by the egg handler except for 
 14.24  cleaning, sanitizing, grading, and further processing when they 
 14.25  must immediately be placed under refrigeration that is 
 14.26  maintained at 45 degrees Fahrenheit (7 degrees Celsius) or 
 14.27  below.  Eggs offered for retail sale must be held at a 
 14.28  temperature not to exceed 45 degrees Fahrenheit (7 degrees 
 14.29  Celsius).  After August 1, 1992, eggs offered for retail sale 
 14.30  must be held at a temperature not to exceed 45 degrees 
 14.31  Fahrenheit (7 degrees Celsius).  Equipment in use prior to 
 14.32  August 1, 1991, is not subject to this requirement.  
 14.33     Sec. 12.  Minnesota Statutes 2000, section 29.23, 
 14.34  subdivision 4, is amended to read: 
 14.35     Subd. 4.  [VEHICLE TEMPERATURE.] A vehicle used for the 
 14.36  transportation of shell eggs from a warehouse, retail store, 
 15.1   candling and grading facility, or egg holding facility must have 
 15.2   an ambient air temperature of 50 45 degrees Fahrenheit (10 7 
 15.3   degrees Celsius) or below. 
 15.4      Sec. 13.  Minnesota Statutes 2000, section 29.237, is 
 15.5   amended to read: 
 15.6      29.237 [UNIFORMITY WITH FEDERAL LAW.] 
 15.7      Subdivision 1.  [SHELL EGGS.] Federal regulations governing 
 15.8   the grading of shell eggs and United States standards, grades, 
 15.9   and weight classes for shell eggs, in effect on July 1, 
 15.10  1990 2000, as provided by Code of Federal Regulations, title 7, 
 15.11  part 56, are the grading and candling rules in this state, 
 15.12  subject to amendment by the commissioner under chapter 14, the 
 15.13  Administrative Procedure Act. 
 15.14     Subd. 2.  [INSPECTION.] Federal regulations governing the 
 15.15  inspection of eggs and egg products, in effect on May 1, 
 15.16  1990 2000, as provided by Code of Federal Regulations, title 7, 
 15.17  part 59, are the inspection of egg and egg products rules in 
 15.18  this state, subject to amendment by the commissioner under 
 15.19  chapter 14, the Administrative Procedure Act. 
 15.20     Sec. 14.  Minnesota Statutes 2000, section 31.101, is 
 15.21  amended by adding a subdivision to read: 
 15.22     Subd. 12.  [DAIRY GRADE RULES; MANUFACTURING PLANT 
 15.23  STANDARDS.] Federal grading and inspection standards for 
 15.24  manufacturing dairy plants and products and amendments thereto 
 15.25  in effect on January 1, 2001, as provided by Code of Federal 
 15.26  Regulations, title 7, part 58, subparts B-W, are adopted as the 
 15.27  dairy grade rules and manufacturing plant standards in this 
 15.28  state. 
 15.29     Sec. 15.  Minnesota Statutes 2000, section 31A.21, 
 15.30  subdivision 2, is amended to read: 
 15.31     Subd. 2.  [FEDERAL ASSISTANCE.] In its cooperative efforts, 
 15.32  the Minnesota department of agriculture may accept from the 
 15.33  United States Secretary of Agriculture (1) advisory assistance 
 15.34  in planning and otherwise developing the state program, (2) 
 15.35  technical and laboratory assistance and training, including 
 15.36  necessary curricular and instructional materials and equipment, 
 16.1   and (3) financial and other aid for the administration of the 
 16.2   program.  The Minnesota department of agriculture may spend a 
 16.3   sum for administration of this chapter equal to 50 percent of 
 16.4   the estimated total cost of the cooperative program. 
 16.5      Sec. 16.  Minnesota Statutes 2000, section 32.21, 
 16.6   subdivision 4, is amended to read: 
 16.7      Subd. 4.  [PENALTIES.] (a) A person, other than a milk 
 16.8   producer, who violates this section is guilty of a misdemeanor 
 16.9   or subject to a civil penalty up to $1,000. 
 16.10     (b) A milk producer may not change milk plants within 30 
 16.11  days, without permission of the commissioner, after receiving 
 16.12  notification from the commissioner under paragraph (c) or (d) 
 16.13  that the milk producer has violated this section. 
 16.14     (c) A milk producer who violates subdivision 3, clause (1), 
 16.15  (2), (3), (4), or (5), is subject to clauses (1) to (3) of this 
 16.16  paragraph. 
 16.17     (1) Upon notification of the first violation in a 12-month 
 16.18  period, the producer must meet with the dairy plant field 
 16.19  service representative to initiate corrective action within 30 
 16.20  days. 
 16.21     (2) Upon the second violation within a 12-month period, the 
 16.22  producer is subject to a civil penalty of $300.  The 
 16.23  commissioner shall notify the producer by certified mail stating 
 16.24  the penalty is payable in 30 days, the consequences of failure 
 16.25  to pay the penalty, and the consequences of future violations. 
 16.26     (3) Upon the third violation within a 12-month period, the 
 16.27  producer is subject to an additional civil penalty of $300 and 
 16.28  possible revocation of the producer's permit or certification.  
 16.29  The commissioner shall notify the producer by certified mail 
 16.30  that all civil penalties owed must be paid within 30 days and 
 16.31  that the commissioner is initiating administrative procedures to 
 16.32  revoke the producer's permit or certification to sell milk for 
 16.33  at least 30 days. 
 16.34     (d) The producer's shipment of milk must be immediately 
 16.35  suspended if the producer is identified as an individual source 
 16.36  of milk containing residues causing a bulk load of milk to test 
 17.1   positive in violation of subdivision 3, clause (6) or (7).  The 
 17.2   Grade A or manufacturing grade permit must be converted to 
 17.3   temporary status for not more than 30 days and shipment may 
 17.4   resume only after subsequent milk has been sampled by the 
 17.5   commissioner or the commissioner's agent and found to contain no 
 17.6   residues above established tolerances or safe levels. 
 17.7      The Grade A or manufacturing grade permit may be restored 
 17.8   if the producer completes the "Milk and Dairy Beef Residue 
 17.9   Prevention Protocol" with a licensed veterinarian, displays the 
 17.10  signed certificate in the milkhouse, and sends verification to 
 17.11  the commissioner within the 30-day temporary permit status 
 17.12  period.  If the producer does not comply within the temporary 
 17.13  permit status period, the Grade A or manufacturing grade permit 
 17.14  must be suspended.  A milk producer whose milk supply is in 
 17.15  violation of subdivision 3, clause (6) or (7), and has caused a 
 17.16  bulk load to test positive is subject to clauses (1) to (3) of 
 17.17  this paragraph.  
 17.18     (1) For the first violation in a 12-month period, the 
 17.19  penalty is the value of all milk on the contaminated load plus 
 17.20  any costs associated with the disposition of the contaminated 
 17.21  load.  Future pick-ups are prohibited until subsequent testing 
 17.22  reveals the milk is free of drug residue.  A farm inspection 
 17.23  must be completed by the plant representative and the producer 
 17.24  to determine the cause of the residue and actions required to 
 17.25  prevent future violations. 
 17.26     (2) For the second violation in a 12-month period, the 
 17.27  penalty is the value of all milk on the contaminated load plus 
 17.28  any costs associated with the disposition of the contaminated 
 17.29  load.  Future pick-ups are prohibited until subsequent testing 
 17.30  reveals the milk is free of drug residue.  A farm inspection 
 17.31  must be completed by the regulatory agency or its agent to 
 17.32  determine the cause of the residue and actions required to 
 17.33  prevent future violations. 
 17.34     (3) For the third violation in a 12-month period, the 
 17.35  penalty is the value of all milk on the contaminated load plus 
 17.36  any costs associated with the disposition of the contaminated 
 18.1   load.  Future pick-ups are prohibited until subsequent testing 
 18.2   reveals the milk is free of drug residue.  The commissioner or 
 18.3   the commissioner's agent shall also notify the producer by 
 18.4   certified mail that the commissioner is initiating 
 18.5   administrative procedures to revoke the producer's right to sell 
 18.6   milk for a minimum of 30 days.  
 18.7      (4) If a bulk load of milk tests negative for residues and 
 18.8   there is a positive producer sample on the load, no civil 
 18.9   penalties may be assessed to the producer.  The plant must 
 18.10  report the positive result within 24 hours and reject further 
 18.11  milk shipments from that producer until the producer's milk 
 18.12  tests negative.  A farm inspection must be completed by the 
 18.13  plant representative and the producer to determine the cause of 
 18.14  the residue and actions required to prevent future violations.  
 18.15  The department shall suspend the producer's permit and count the 
 18.16  violation on the producer's record.  The Grade A or 
 18.17  manufacturing grade permit must be converted to temporary status 
 18.18  for not more than 30 days during which time the producer must 
 18.19  review the "Milk and Dairy Beef Residue Prevention Protocol" 
 18.20  with a licensed veterinarian, display the signed certificate in 
 18.21  the milkhouse, and send verification to the commissioner.  If 
 18.22  these conditions are met, the Grade A or manufacturing grade 
 18.23  permit must be reinstated.  If the producer does not comply 
 18.24  within the temporary permit status period, the Grade A or 
 18.25  manufacturing grade permit must be suspended. 
 18.26     (e) A milk producer that has been certified as completing 
 18.27  the "Milk and Dairy Beef Residue Prevention Protocol" within 12 
 18.28  months of the first violation of subdivision 3, clause (7), need 
 18.29  only review the cause of the violation with a field service 
 18.30  representative within three days to maintain Grade A or 
 18.31  manufacturing grade permit and shipping status if all other 
 18.32  requirements of this section are met. 
 18.33     (f) Civil penalties collected under this section must be 
 18.34  deposited in the milk inspection services account established in 
 18.35  this chapter. 
 18.36     Sec. 17.  Minnesota Statutes 2000, section 32.394, 
 19.1   subdivision 4, is amended to read: 
 19.2      Subd. 4.  [RULES.] The commissioner shall by rule 
 19.3   promulgate identity, production and processing standards for 
 19.4   milk, milk products and goat milk which are intended to bear the 
 19.5   Grade A label. 
 19.6      In the exercise of the authority to establish requirements 
 19.7   for Grade A milk, milk products and goat milk, the commissioner 
 19.8   may adopt adopts definitions, standards of identity, and 
 19.9   requirements for production and processing contained in the 
 19.10  "1999 Grade A Pasteurized Milk Ordinance" and the "1995 Grade A 
 19.11  Condensed and Dry Milk Ordinance" of the United States 
 19.12  Department of Health and Human Services, in a manner provided 
 19.13  for and not in conflict with law. 
 19.14     Sec. 18.  Minnesota Statutes 2000, section 32.415, is 
 19.15  amended to read: 
 19.16     32.415 [MILK FOR MANUFACTURING; QUALITY STANDARDS.] 
 19.17     (a) The commissioner may adopt rules to provide uniform 
 19.18  quality standards, and producers of milk used for manufacturing 
 19.19  purposes shall conform to the standards contained in Subparts B, 
 19.20  C, D, E, and F of the United States Department of Agriculture 
 19.21  Consumer and Marketing Service Recommended Requirements for Milk 
 19.22  for Manufacturing Purposes and its Production and Processing, 
 19.23  Vol. 37 Federal Register, No. 68, Part II, April 7, 1972, as 
 19.24  revised through March 1, 1997 November 12, 1996, except that the 
 19.25  commissioner shall develop methods by which producers can comply 
 19.26  with the standards without violation of religious beliefs.  
 19.27     (b) The commissioner shall perform or contract for the 
 19.28  performance of the inspections necessary to implement this 
 19.29  section or shall certify dairy industry personnel to perform the 
 19.30  inspections.  
 19.31     (c) The commissioner and other employees of the department 
 19.32  shall make every reasonable effort to assist producers in 
 19.33  achieving the milk quality standards at minimum cost and to use 
 19.34  the experience and expertise of the University of Minnesota and 
 19.35  the agricultural extension service to assist producers in 
 19.36  achieving the milk quality standards in the most cost-effective 
 20.1   manner.  
 20.2      (d) The commissioner shall consult with producers, 
 20.3   processors, and others involved in the dairy industry in order 
 20.4   to prepare for the implementation of this section including 
 20.5   development of informational and educational materials, 
 20.6   meetings, and other methods of informing producers about the 
 20.7   implementation of standards under this section. 
 20.8      Sec. 19.  Minnesota Statutes 2000, section 32.475, 
 20.9   subdivision 2, is amended to read: 
 20.10     Subd. 2.  [MINNESOTA GRADES.] It is unlawful to sell, offer 
 20.11  or expose for sale, or have in possession with intent to sell 
 20.12  any butter at retail unless it has been graded and labeled with 
 20.13  such grades as follows: 
 20.14     (a) Grade, Minnesota, AA -- 93 score U.S. Grade AA 
 20.15     (b) Grade, Minnesota, A -- 92 score U.S. Grade A 
 20.16     (c) Grade, Minnesota, B -- 90 score U.S. Grade B 
 20.17     (d) Grade, Minnesota, undergrade -- all butter below 
 20.18  Minnesota B.  
 20.19     For the purposes of this section "sale at retail" shall 
 20.20  include all sales to a restaurant or eating establishment that 
 20.21  serves butter to its patrons or that uses butter in the 
 20.22  preparation of any food which is served to its patrons.  
 20.23     Sec. 20.  Minnesota Statutes 2000, section 32.70, 
 20.24  subdivision 7, is amended to read: 
 20.25     Subd. 7.  [SELECTED CLASS I DAIRY PRODUCTS.] "Selected 
 20.26  class I dairy products" means milk for human consumption in 
 20.27  fluid form and all other class I dairy products as defined by 
 20.28  the Upper Midwest Milk Marketing Order, Code of Federal 
 20.29  Regulations, title 7, part 1068.40 1030.40, or successor orders. 
 20.30     Sec. 21.  Minnesota Statutes 2000, section 32.70, 
 20.31  subdivision 8, is amended to read: 
 20.32     Subd. 8.  [SELECTED CLASS II DAIRY PRODUCTS.] "Selected 
 20.33  class II dairy products" means milk for human consumption 
 20.34  processed into fluid cream, eggnog, yogurt, and all other class 
 20.35  II dairy products as defined by the Upper Midwest Milk Marketing 
 20.36  Order, Code of Federal Regulations, title 7, part 1068.40 
 21.1   1030.40, or successor orders. 
 21.2      Sec. 22.  Minnesota Statutes 2000, section 41B.025, 
 21.3   subdivision 1, is amended to read: 
 21.4      Subdivision 1.  [ESTABLISHMENT.] There is created a public 
 21.5   body corporate and politic to be known as the "Minnesota rural 
 21.6   finance authority," which shall perform the governmental 
 21.7   functions and exercise the sovereign powers delegated to it in 
 21.8   sections 41B.01 to 41B.23 and chapter 41C in furtherance of the 
 21.9   public policies and purposes declared in section 41B.01.  The 
 21.10  board of the authority consists of the commissioners of 
 21.11  agriculture, commerce, trade and economic development, and 
 21.12  finance, the state auditor, and six public members appointed by 
 21.13  the governor with the advice and consent of the senate.  The 
 21.14  state auditor may designate one staff member to serve in the 
 21.15  auditor's place.  No public member may reside within the 
 21.16  metropolitan area, as defined in section 473.121, subdivision 
 21.17  2.  Each member shall hold office until a successor has been 
 21.18  appointed and has qualified.  A certificate of appointment or 
 21.19  reappointment of any member is conclusive evidence of the proper 
 21.20  appointment of the member. 
 21.21     Sec. 23.  Minnesota Statutes 2000, section 41B.03, 
 21.22  subdivision 2, is amended to read: 
 21.23     Subd. 2.  [ELIGIBILITY FOR RESTRUCTURED LOAN.] In addition 
 21.24  to the eligibility requirements of subdivision 1, a prospective 
 21.25  borrower for a restructured loan must:  
 21.26     (1) have received at least 50 percent of average annual 
 21.27  gross income from farming for the past three years or, for 
 21.28  homesteaded property, received at least 40 percent of average 
 21.29  gross income from farming in the past three years, and farming 
 21.30  must be the principal occupation of the borrower; 
 21.31     (2) have a debt-to-asset ratio equal to or greater than 50 
 21.32  percent and in determining this ratio, the assets must be valued 
 21.33  at their current market value; 
 21.34     (3) have projected annual expenses, including operating 
 21.35  expenses, family living, and interest expenses after the 
 21.36  restructuring, that do not exceed 95 percent of the borrower's 
 22.1   projected annual income considering prior production history and 
 22.2   projected prices for farm production, except that the authority 
 22.3   may reduce the 95 percent requirement if it finds that other 
 22.4   significant factors in the loan application support the making 
 22.5   of the loan; 
 22.6      (4) (3) demonstrate substantial difficulty in meeting 
 22.7   projected annual expenses without restructuring the loan; and 
 22.8      (5) (4) must have a total net worth, including assets and 
 22.9   liabilities of the borrower's spouse and dependents, of less 
 22.10  than $400,000 in 1999 and an amount in subsequent years which is 
 22.11  adjusted for inflation by multiplying $400,000 by the cumulative 
 22.12  inflation rate as determined by the United States All-Items 
 22.13  Consumer Price Index. 
 22.14     Sec. 24.  Minnesota Statutes 2000, section 41B.036, is 
 22.15  amended to read: 
 22.16     41B.036 [GENERAL POWERS OF THE AUTHORITY.] 
 22.17     For the purpose of exercising the specific powers granted 
 22.18  in section 41B.04 and effectuating the other purposes of 
 22.19  sections 41B.01 to 41B.23 the authority has the general powers 
 22.20  granted in this section. 
 22.21     (a) It may sue and be sued. 
 22.22     (b) It may have a seal and alter the seal. 
 22.23     (c) It may make, and from time to time, amend and repeal 
 22.24  rules consistent with sections 41B.01 to 41B.23. 
 22.25     (d) It may acquire, hold, and dispose of real or personal 
 22.26  property for its corporate purposes. 
 22.27     (e) It may enter into agreements, contracts, or other 
 22.28  transactions with any federal or state agency, any person and 
 22.29  any domestic or foreign partnership, corporation, association, 
 22.30  or organization, including contracts or agreements for 
 22.31  administration and implementation of all or part of sections 
 22.32  41B.01 to 41B.23. 
 22.33     (f) It may acquire real property, or an interest therein, 
 22.34  in its own name, by purchase or foreclosure, where such 
 22.35  acquisition is necessary or appropriate. 
 22.36     (g) It may provide general technical services related to 
 23.1   rural finance. 
 23.2      (h) It may provide general consultative assistance services 
 23.3   related to rural finance. 
 23.4      (i) It may promote research and development in matters 
 23.5   related to rural finance. 
 23.6      (j) It may enter into agreements with lenders, borrowers, 
 23.7   or the issuers of securities for the purpose of regulating the 
 23.8   development and management of farms financed in whole or in part 
 23.9   by the proceeds of qualified agricultural loans. 
 23.10     (k) It may enter into agreements with other appropriate 
 23.11  federal, state, or local governmental units to foster rural 
 23.12  finance.  It may give advance reservations of loan financing as 
 23.13  part of the agreements, with the understanding that the 
 23.14  authority will only approve the loans pursuant to normal 
 23.15  procedures, and may adopt special procedures designed to meet 
 23.16  problems inherent in such programs. 
 23.17     (l) It may undertake and carry out studies and analyses of 
 23.18  rural financing needs within the state and ways of meeting such 
 23.19  needs including:  data with respect to geographical 
 23.20  distribution; farm size; the distribution of farm credit needs 
 23.21  according to debt ratios and similar factors; the amount and 
 23.22  quality of available financing and its distribution according to 
 23.23  factors affecting rural financing needs and the meeting thereof; 
 23.24  and may make the results of such studies and analyses available 
 23.25  to the public and may engage in research and disseminate 
 23.26  information on rural finance. 
 23.27     (m) It may survey and investigate the rural financing needs 
 23.28  throughout the state and make recommendations to the governor 
 23.29  and the legislature as to legislation and other measures 
 23.30  necessary or advisable to alleviate any existing shortage in the 
 23.31  state. 
 23.32     (n) It may establish cooperative relationships with such 
 23.33  county and multicounty authorities as may be established and may 
 23.34  develop priorities for the utilization of authority resources 
 23.35  and assistance within a region in cooperation with county and 
 23.36  multicounty authorities. 
 24.1      (o) It may contract with, use, or employ any federal, 
 24.2   state, regional, or local public or private agency or 
 24.3   organization, legal counsel, financial advisors, investment 
 24.4   bankers or others, upon terms it deems necessary or desirable, 
 24.5   to assist in the exercise of any of the powers granted in 
 24.6   sections 41B.01 to 41B.23 and to carry out the objectives of 
 24.7   sections 41B.01 to 41B.23 and may pay for the services from 
 24.8   authority funds. 
 24.9      (p) It may establish cooperative relationships with 
 24.10  counties to develop priorities for the use of authority 
 24.11  resources and assistance within counties and to consider county 
 24.12  plans and programs in the process of setting the priorities. 
 24.13     (q) It may delegate any of its powers to its officers or 
 24.14  staff. 
 24.15     (r) It may enter into agreements with qualified 
 24.16  agricultural lenders or others insuring or guaranteeing to the 
 24.17  state the payment of all or a portion of qualified agricultural 
 24.18  loans. 
 24.19     (s) It may enter into agreements with eligible agricultural 
 24.20  lenders providing for advance reservations of purchases of 
 24.21  participation interests in restructuring loans, if the 
 24.22  agreements provide that the authority may only purchase 
 24.23  participation interests in restructuring loans under the normal 
 24.24  procedure.  The authority may provide in an agreement for 
 24.25  special procedures or requirements designed to meet specific 
 24.26  conditions or requirements. 
 24.27     (t) It may allow farmers who are natural persons to combine 
 24.28  programs of the federal Agriculture Credit Act of 1987 with 
 24.29  programs of the rural finance authority. 
 24.30     (u) From within available funds generated by program fees, 
 24.31  it may provide partial or full tuition assistance for farm 
 24.32  management programs required under section 41B.03, subdivision 
 24.33  3, clause (7). 
 24.34     (v) It may provide technical information and other services 
 24.35  and assistance to state or local government departments, 
 24.36  agencies, and offices to maximize the utilization of 
 25.1   Minnesota-produced agricultural products, including but not 
 25.2   limited to ethanol and other liquid fuels.  
 25.3      Sec. 25.  Minnesota Statutes 2000, section 41B.043, 
 25.4   subdivision 1b, is amended to read: 
 25.5      Subd. 1b.  [LOAN PARTICIPATION.] The authority may 
 25.6   participate in an agricultural improvement loan with an eligible 
 25.7   lender to a farmer who meets the requirements of section 41B.03, 
 25.8   subdivision 1, clauses (1) and (2), and who are actively engaged 
 25.9   in farming.  Participation is limited to 45 percent of the 
 25.10  principal amount of the loan or $100,000 $125,000, whichever is 
 25.11  less.  The interest rates and repayment terms of the authority's 
 25.12  participation interest may be different than the interest rates 
 25.13  and repayment terms of the lender's retained portion of the loan.
 25.14     Sec. 26.  Minnesota Statutes 2000, section 41B.043, 
 25.15  subdivision 2, is amended to read: 
 25.16     Subd. 2.  [SPECIFICATIONS.] No direct loan may exceed 
 25.17  $35,000 or $125,000 for a loan participation or be made to 
 25.18  refinance an existing debt.  Each direct loan and participation 
 25.19  must be secured by a mortgage on real property and such other 
 25.20  security as the authority may require. 
 25.21     Sec. 27.  Minnesota Statutes 2000, section 41B.046, 
 25.22  subdivision 2, is amended to read: 
 25.23     Subd. 2.  [ESTABLISHMENT.] The authority shall establish 
 25.24  and implement a value-added agricultural product loan program to 
 25.25  help farmers finance the purchase of stock in a cooperative that 
 25.26  is proposing to build or purchase and operate an agricultural 
 25.27  product processing facility or already owns and operates an 
 25.28  agricultural product processing facility. 
 25.29     Sec. 28.  Minnesota Statutes 2000, section 97B.001, 
 25.30  subdivision 1, is amended to read: 
 25.31     Subdivision 1.  [AGRICULTURAL LAND DEFINITION.] For 
 25.32  purposes of this section, "agricultural land" means land: 
 25.33     (1) that is plowed or tilled; 
 25.34     (2) that has standing crops or crop residues; or 
 25.35     (3) within a maintained fence for enclosing domestic 
 25.36  livestock; 
 26.1      (4) that is planted native or introduced grassland or hay 
 26.2   land; or 
 26.3      (5) that is planted to short rotation woody crops as 
 26.4   defined in section 41B.048, subdivision 4. 
 26.5      Sec. 29.  [325E.165] [DEFINITIONS.] 
 26.6      Subdivision 1.  [SCOPE.] For the purposes of sections 
 26.7   325E.165 to 325E.167, the terms defined in this section have the 
 26.8   meanings given them. 
 26.9      Subd. 2.  [FARM TRACTOR.] "Farm tractor" means a 
 26.10  self-propelled vehicle that is designed primarily for pulling or 
 26.11  propelling agricultural machinery and implements and is used 
 26.12  principally in the occupation or business of farming, including 
 26.13  an implement of husbandry, as defined in section 169.01, 
 26.14  subdivision 55, that is self-propelled. 
 26.15     Subd. 3.  [PERSON.] "Person" means an individual, firm, 
 26.16  partnership, incorporated and unincorporated association, or 
 26.17  other legal or commercial entity. 
 26.18     Sec. 30.  [325E.166] [CLOCK-HOUR METERS; PROHIBITED ACTS.] 
 26.19     Subdivision 1.  [TAMPERING.] No person shall, with intent 
 26.20  to defraud, knowingly tamper with, adjust, alter, change, set 
 26.21  back, disconnect, or fail to connect the clock-hour meter of a 
 26.22  farm tractor, or cause any of the foregoing to occur to a 
 26.23  clock-hour meter of a farm tractor, so as to reflect fewer hours 
 26.24  than the farm tractor has actually been in operation. 
 26.25     Subd. 2.  [OPERATION WITH DISCONNECTED OR NONFUNCTIONAL 
 26.26  METER.] No person shall, with intent to defraud, operate a farm 
 26.27  tractor knowing that the clock-hour meter of the farm tractor is 
 26.28  disconnected or nonfunctional. 
 26.29     Subd. 3.  [TAMPERING DEVICE.] No person shall advertise for 
 26.30  sale, sell, use, or install on any part of a farm tractor or on 
 26.31  a clock-hour meter in a farm tractor a device that causes the 
 26.32  clock-hour meter to register any hours of operation other than 
 26.33  the true hours of operation that the clock-hour meter was 
 26.34  designed to measure. 
 26.35     Subd. 4.  [DISCLOSURE.] No person shall sell or offer for 
 26.36  sale a farm tractor with knowledge that the hours registered on 
 27.1   the clock-hour meter have been altered so as to reflect fewer 
 27.2   hours than the farm tractor has actually been in operation, 
 27.3   without disclosing the fact to prospective purchasers. 
 27.4      Subd. 5.  [CONSPIRACY.] No person shall conspire with 
 27.5   another person to violate this section. 
 27.6      Sec. 31.  [325E.167] [PENALTIES; REMEDIES.] 
 27.7      Subdivision 1.  [CRIMINAL PENALTY.] A person who is found 
 27.8   to have violated sections 325E.165 to 325E.167 is guilty of a 
 27.9   gross misdemeanor. 
 27.10     Subd. 2.  [CIVIL PENALTY.] In addition to the penalties 
 27.11  provided in subdivision 1, any person who is found to have 
 27.12  violated sections 325E.165 to 325E.167 is subject to the 
 27.13  penalties in section 8.31. 
 27.14     Subd. 3.  [PRIVATE RIGHT OF ACTION.] A person injured by a 
 27.15  violation of sections 325E.165 to 325E.167 may recover the 
 27.16  actual damages sustained together with costs and disbursements, 
 27.17  including reasonable attorney fees.  The court in its discretion 
 27.18  may increase the award of damages to an amount not to exceed 
 27.19  three times the actual damages sustained or $1,500, whichever is 
 27.20  greater. 
 27.21     Sec. 32.  [348.125] [COYOTE CONFLICT MANAGEMENT OPTION.] 
 27.22     A county board may, by resolution, offer a bounty for the 
 27.23  destruction of coyotes (Canis latrans).  The resolution may be 
 27.24  made applicable to the whole or any part of the county.  The 
 27.25  bounty must apply during the months specified in the resolution 
 27.26  and be in an amount determined by the board.  
 27.27     Sec. 33.  [SUSPENSION OF RULE.] 
 27.28     The application of Minnesota Rules, part 1720.0620, is 
 27.29  suspended from January 1, 2001, to June 1, 2002, for products 
 27.30  used exclusively for poultry.  
 27.31     Sec. 34.  [REPEALER.] 
 27.32     Minnesota Statutes 2000, sections 17.039; 17.042; 17.06; 
 27.33  17.07; 17.108; 17.139; 17.45; 17.4996; 17.76; 17.861; 17A.091, 
 27.34  subdivision 1; 17B.21; 17B.23; 17B.24; 17B.25; 17B.26; 17B.27; 
 27.35  18.205; 24.001; 24.002; 24.12; 24.131; 24.135; 24.141; 24.145; 
 27.36  24.151; 24.155; 24.161; 24.171; 24.175; 24.18; 24.181; 25.47; 
 28.1   27.185; 29.025; 29.049; 30.50; 30.51; 31.185; 31.73; 31B.07; 
 28.2   32.11; 32.12; 32.18; 32.19; 32.20; 32.203; 32.204; 32.206; 
 28.3   32.208; 32.471, subdivision 1; 32.474; 32.481, subdivision 2; 
 28.4   32.529; 32.53; 32.531, subdivisions 1, 5, 6, and 7; 32.5311; 
 28.5   32.5312; 32.532; 32.533; 32.534; and 32.55, subdivisions 15, 16, 
 28.6   and 17; 33.001; 33.002; 33.01; 33.011; 33.02; 33.03; 33.031; 
 28.7   33.032; 33.06; 33.07; 33.08; 33.09; 33.091; 33.111; 35.04; 
 28.8   35.14; and 35.84, are repealed. 
 28.9      Sec. 35.  [EFFECTIVE DATE.] 
 28.10     Sections 1, 2, 8, 9, 22, 23, 25, 26, 27, 33, and 34 are 
 28.11  effective the day following final enactment.