1.1                          A bill for an act 
  1.2             relating to agriculture; clarifying and updating 
  1.3             certain terms; changing certain requirements and 
  1.4             procedures; limiting certain fees and payments; 
  1.5             authorizing agreements; amending Minnesota Statutes 
  1.6             2000, sections 17.90, subdivision 1a, by adding a 
  1.7             subdivision; 17B.03, subdivision 1; 18B.315, 
  1.8             subdivision 3; 18E.02, by adding a subdivision; 
  1.9             18E.03, subdivision 4; 18E.04, subdivision 3; 18E.06; 
  1.10            21.111, by adding a subdivision; 31.101, as amended; 
  1.11            31.102, subdivision 1; 31.103, subdivision 1; 31.104; 
  1.12            38.331, subdivision 2; 41B.03, subdivisions 1, 3; 
  1.13            223.16, subdivision 5; Minnesota Statutes 2001 
  1.14            Supplement, sections 17.9442; 18B.36, subdivision 1; 
  1.15            18E.04, subdivisions 2, 4; 41B.046, subdivision 2. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 2000, section 17.90, 
  1.18  subdivision 1a, is amended to read: 
  1.19     Subd. 1a.  [AGRICULTURAL CONTRACT.] "Agricultural contract" 
  1.20  means any written contract between a contractor and a producer, 
  1.21  but does not include a contract between a grain buyer licensed 
  1.22  under section 223.17, subdivision 1, who purchases grain from a 
  1.23  producer as a merchant or seller of grain and does not contract 
  1.24  with the producer to grow or raise the crops producing the grain.
  1.25     Sec. 2.  Minnesota Statutes 2000, section 17.90, is amended 
  1.26  by adding a subdivision to read: 
  1.27     Subd. 3b.  [GRAIN.] "Grain" has the meaning given in 
  1.28  section 223.16, subdivision 4. 
  1.29     Sec. 3.  Minnesota Statutes 2001 Supplement, section 
  1.30  17.9442, is amended to read: 
  2.1      17.9442 [APPLICABILITY OF CONTRACT REQUIREMENTS.] 
  2.2      The requirements for the written disclosure of material 
  2.3   risks under section 17.91, subdivision 2; the three-day review 
  2.4   period under section 17.941; the cover sheet requirement under 
  2.5   section 17.942; and the contract readability requirements under 
  2.6   section 17.943, subdivision 1, do not apply to contracts which 
  2.7   provide for: 
  2.8      (1) the sale and purchase of a fixed amount of a commodity 
  2.9   for delivery at a set price; 
  2.10     (2) price-later cash sale and forward delivery grain 
  2.11  contracts for grain meeting certain specifications and does not 
  2.12  prescribe the time, manner, and nature of planting, cultivating, 
  2.13  and harvesting the crop producing the grain, including fixed 
  2.14  price forward contracts, minimum price contracts, mini-max 
  2.15  contracts, basis contracts, hedge-to-arrive contracts, and 
  2.16  delayed price contracts; 
  2.17     (3) contracts agreed to between a processor and an 
  2.18  accredited bargaining organization under sections 17.691 to 
  2.19  17.702; 
  2.20     (4) future futures contracts which involve the sale or 
  2.21  purchase of a standardized quantity of a commodity for future 
  2.22  delivery on a regulated commodity exchange; 
  2.23     (5) agricultural marketing contracts between a capital 
  2.24  stock cooperative and its members under section 308A.205; or 
  2.25     (6) occasional sales between persons who produce or cause 
  2.26  to be produced food, feed, or fiber in a quantity beyond their 
  2.27  own family use. 
  2.28     Sec. 4.  Minnesota Statutes 2000, section 17B.03, 
  2.29  subdivision 1, is amended to read: 
  2.30     Subdivision 1.  [COMMISSIONER'S POWERS.] The commissioner 
  2.31  of agriculture shall exercise general supervision over the 
  2.32  inspection, grading, weighing, sampling, and analysis of 
  2.33  grain within the state of Minnesota subject to the provisions of 
  2.34  the United States Grain Standards Act of 1976 and the rules 
  2.35  promulgated thereunder by the United States Department of 
  2.36  Agriculture.  This activity may take place within or outside the 
  3.1   state of Minnesota. 
  3.2      Sec. 5.  Minnesota Statutes 2000, section 18B.315, 
  3.3   subdivision 3, is amended to read: 
  3.4      Subd. 3.  [APPLICATION.] (a) A person must apply to the 
  3.5   commissioner for an aquatic pest control license on forms and in 
  3.6   a manner required by the commissioner.  The commissioner shall 
  3.7   require the applicant to pass a written, closed-book, monitored 
  3.8   examination or oral examination, or both, and may also require a 
  3.9   practical demonstration regarding aquatic pest control.  The 
  3.10  commissioner shall establish the examination procedure, 
  3.11  including the phases and contents of the examination. 
  3.12     (b) The commissioner may license a person as a master under 
  3.13  an aquatic pest control license if the person has the necessary 
  3.14  qualifications through knowledge and experience to properly 
  3.15  plan, determine, and supervise the selection and application of 
  3.16  pesticides in aquatic pest control.  To demonstrate the 
  3.17  qualifications and become licensed as a master under the aquatic 
  3.18  pest control license, a person must: 
  3.19     (1) pass a closed-book test administered by the 
  3.20  commissioner; 
  3.21     (2) have direct experience as a licensed journeyman under 
  3.22  an aquatic pest control license or as a licensed pesticide 
  3.23  applicator for at least two years by this state or a state with 
  3.24  equivalent certification requirements, or have at least 1,600 
  3.25  hours of qualifying experience in the previous four years as 
  3.26  determined by the commissioner; and 
  3.27     (3) show practical knowledge and field experience under 
  3.28  clause (2) in the actual selection and application of pesticides 
  3.29  under varying conditions. 
  3.30     (c) The commissioner may license a person as a journeyman 
  3.31  under an aquatic pest control license if the person: 
  3.32     (1) has the necessary qualifications in the practical 
  3.33  selection and application of pesticides; 
  3.34     (2) has passed a closed-book examination given by the 
  3.35  commissioner; and 
  3.36     (3) is engaged as an employee of or is working under the 
  4.1   direction of a person licensed as a master under an aquatic pest 
  4.2   control license. 
  4.3      Sec. 6.  Minnesota Statutes 2001 Supplement, section 
  4.4   18B.36, subdivision 1, is amended to read: 
  4.5      Subdivision 1.  [REQUIREMENT.] (a) Except for a licensed 
  4.6   commercial or noncommercial applicator, only a certified private 
  4.7   applicator may use a restricted use pesticide to produce an 
  4.8   agricultural commodity: 
  4.9      (1) as a traditional exchange of services without financial 
  4.10  compensation; 
  4.11     (2) on a site owned, rented, or managed by the person or 
  4.12  the person's employees; or 
  4.13     (3) when the private applicator is one of two or fewer 
  4.14  specified individuals employed as agricultural employment as 
  4.15  defined by section 268.035, subdivision 2, employees and the 
  4.16  owner or operator is a certified private applicator or is 
  4.17  licensed as a noncommercial applicator. 
  4.18     (b) A private applicator may not purchase a restricted use 
  4.19  pesticide without presenting a certified private applicator card 
  4.20  or the card number. 
  4.21     Sec. 7.  Minnesota Statutes 2000, section 18E.02, is 
  4.22  amended by adding a subdivision to read: 
  4.23     Subd. 5a.  [EMERGENCY INCIDENT.] "Emergency incident" means 
  4.24  an incident resulting from a flood, fire, tornado, 
  4.25  transportation accident, storage container rupture, or other 
  4.26  event as determined by the commissioner that immediately, 
  4.27  uncontrollably, and unpredictably releases agricultural 
  4.28  chemicals into the environment and which may cause unreasonable 
  4.29  adverse effects on the public health or the environment. 
  4.30     Sec. 8.  Minnesota Statutes 2000, section 18E.03, 
  4.31  subdivision 4, is amended to read: 
  4.32     Subd. 4.  [FEE.] (a) The response and reimbursement fee 
  4.33  consists of the surcharges and any adjustments made by the 
  4.34  commissioner in this subdivision and shall be collected by the 
  4.35  commissioner.  The amount of the response and reimbursement fee 
  4.36  shall be determined and imposed annually by the commissioner as 
  5.1   required to satisfy the requirements in subdivision 3.  The 
  5.2   commissioner shall adjust the amount of the surcharges imposed 
  5.3   in proportion to the amount of the surcharges listed in this 
  5.4   subdivision.  License application categories under paragraph (d) 
  5.5   must be charged in proportion to the amount of surcharges 
  5.6   imposed up to a maximum of 50 percent of the license fees set 
  5.7   under chapters 18B and 18C. 
  5.8      (b) The commissioner shall impose a surcharge on pesticides 
  5.9   registered under chapter 18B to be collected as a surcharge on 
  5.10  the registration application fee under section 18B.26, 
  5.11  subdivision 3, that is equal to 0.1 percent of sales of the 
  5.12  pesticide in the state and sales of pesticides for use in the 
  5.13  state during the previous calendar year, except the surcharge 
  5.14  may not be imposed on pesticides that are sanitizers or 
  5.15  disinfectants as determined by the commissioner.  No surcharge 
  5.16  is required if the surcharge amount based on percent of annual 
  5.17  gross sales is less than $10.  The registrant shall determine 
  5.18  when and which pesticides are sold or used in this state.  The 
  5.19  registrant shall secure sufficient sales information of 
  5.20  pesticides distributed into this state from distributors and 
  5.21  dealers, regardless of distributor location, to make a 
  5.22  determination.  Sales of pesticides in this state and sales of 
  5.23  pesticides for use in this state by out-of-state distributors 
  5.24  are not exempt and must be included in the registrant's annual 
  5.25  report, as required under section 18B.26, subdivision 3, 
  5.26  paragraph (c), and fees shall be paid by the registrant based 
  5.27  upon those reported sales.  Sales of pesticides in the state for 
  5.28  use outside of the state are exempt from the surcharge in this 
  5.29  paragraph if the registrant properly documents the sale location 
  5.30  and the distributors. 
  5.31     (c) The commissioner shall impose a ten cents per ton 
  5.32  surcharge on the inspection fee under section 18C.425, 
  5.33  subdivision 6, for fertilizers, soil amendments, and plant 
  5.34  amendments.  
  5.35     (d) The commissioner shall impose a surcharge on the 
  5.36  license application of persons licensed under chapters 18B and 
  6.1   18C consisting of: 
  6.2      (1) a $75 surcharge for each site where pesticides are 
  6.3   stored or distributed, to be imposed as a surcharge on pesticide 
  6.4   dealer application fees up to a maximum of 50 percent of the 
  6.5   license fee required under section 18B.31, subdivision 5; 
  6.6      (2) a $75 surcharge for each site where a fertilizer, plant 
  6.7   amendment, or soil amendment is distributed, to be imposed on 
  6.8   persons licensed up to a maximum of 50 percent of the license 
  6.9   fee required under sections 18C.415 and 18C.425; 
  6.10     (3) a $50 surcharge to be imposed on a structural pest 
  6.11  control applicator license application up to a maximum of 50 
  6.12  percent of the license fee required under section 18B.32, 
  6.13  subdivision 6, for business license applications only; 
  6.14     (4) a $20 surcharge to be imposed on commercial applicator 
  6.15  license application fees up to a maximum of 50 percent of the 
  6.16  license fee required under section 18B.33, subdivision 7; 
  6.17     (5) a $20 surcharge to be imposed on noncommercial 
  6.18  applicator license application fees up to a maximum of 50 
  6.19  percent of the license fee required under section 18B.34, 
  6.20  subdivision 5, except a surcharge may not be imposed on a 
  6.21  noncommercial applicator that is a state agency, political 
  6.22  subdivision of the state, the federal government, or an agency 
  6.23  of the federal government; and 
  6.24     (6) a $20 surcharge to be imposed on aquatic pest control 
  6.25  licenses up to a maximum of 50 percent of the license fee 
  6.26  required under section 18B.315. 
  6.27     (e) A $1,000 fee shall be imposed on each site where 
  6.28  pesticides are stored and sold for use outside of the state 
  6.29  unless:  
  6.30     (1) the distributor properly documents that it has less 
  6.31  than $2,000,000 per year in wholesale value of pesticides stored 
  6.32  and transferred through the site; or 
  6.33     (2) the registrant pays the surcharge under paragraph (b) 
  6.34  and the registration fee under section 18B.26, subdivision 3, 
  6.35  for all of the pesticides stored at the site and sold for use 
  6.36  outside of the state. 
  7.1      (f) Paragraphs (c) to (e) apply to sales, licenses issued, 
  7.2   applications received for licenses, and inspection fees imposed 
  7.3   on or after July 1, 1990. 
  7.4      Sec. 9.  Minnesota Statutes 2001 Supplement, section 
  7.5   18E.04, subdivision 2, is amended to read: 
  7.6      Subd. 2.  [PAYMENT OF CORRECTIVE ACTION COSTS.] (a) On 
  7.7   request by an eligible person, the board may pay the eligible 
  7.8   person for the reasonable and necessary cash disbursements for 
  7.9   corrective action costs incurred by the eligible person as 
  7.10  provided under subdivision 4 if the board determines: 
  7.11     (1) the eligible person pays the first $1,000 of the 
  7.12  corrective action costs; 
  7.13     (2) the eligible person provides the board with a sworn 
  7.14  affidavit and other convincing evidence that the eligible person 
  7.15  is unable to pay additional corrective action costs; 
  7.16     (3) the eligible person continues to assume responsibility 
  7.17  for carrying out the requirements of corrective action orders 
  7.18  issued to the eligible person or that are in effect; 
  7.19     (4) the incident was reported as required in chapters 18B, 
  7.20  18C, and 18D; and 
  7.21     (5) the eligible person submits an application for payment 
  7.22  or reimbursement to the department within three years of (i) 
  7.23  incurring eligible corrective action costs, or (ii) approval of 
  7.24  a corrective action report design, whichever is later. 
  7.25     (b) The eligible person must submit an application for 
  7.26  payment or reimbursement of eligible cost incurred prior to July 
  7.27  1, 2001, no later than June 1, 2004. 
  7.28     (c) An eligible person is not eligible for payment or 
  7.29  reimbursement and must refund amounts paid or reimbursed by the 
  7.30  board if false statements or misrepresentations are made in the 
  7.31  affidavit or other evidence submitted to the commissioner to 
  7.32  show an inability to pay corrective action costs.  
  7.33     (d) The board may pay the eligible person and one or more 
  7.34  designees by multiparty check. 
  7.35     Sec. 10.  Minnesota Statutes 2000, section 18E.04, 
  7.36  subdivision 3, is amended to read: 
  8.1      Subd. 3.  [PARTIAL REIMBURSEMENT.] (a) If the unencumbered 
  8.2   balance of the account drops below $2,000,000, the board may 
  8.3   only pay or reimburse an eligible person up to $100,000 within 
  8.4   the same fiscal year. 
  8.5      (b) If the board determines that an incident was caused by 
  8.6   a violation of chapter 18B, 18C, or 18D, the board may reimburse 
  8.7   or pay a portion of the corrective action costs of the eligible 
  8.8   person based on the culpability of the eligible person and the 
  8.9   percentage of the costs not attributable to the violation.  
  8.10     Sec. 11.  Minnesota Statutes 2001 Supplement, section 
  8.11  18E.04, subdivision 4, is amended to read: 
  8.12     Subd. 4.  [REIMBURSEMENT PAYMENTS.] (a) The board shall pay 
  8.13  a person that is eligible for reimbursement or payment under 
  8.14  subdivisions 1, 2, and 3 from the agricultural chemical response 
  8.15  and reimbursement account for:  
  8.16     (1) 90 80 percent of the total reasonable and necessary 
  8.17  corrective action costs greater than $1,000 and less than or 
  8.18  equal to $200,000; 
  8.19     (2) 80 percent of the total reasonable and necessary 
  8.20  corrective action costs greater than $200,000 but less than or 
  8.21  equal to $300,000; and 
  8.22     (3) 60 percent of the total reasonable and necessary 
  8.23  corrective action costs greater than $300,000 but less than or 
  8.24  equal to $350,000.  
  8.25     (b) A reimbursement or payment may not be made until the 
  8.26  board has determined that the costs are reasonable and are for a 
  8.27  reimbursement of the costs that were actually incurred. 
  8.28     (c) The board may make periodic payments or reimbursements 
  8.29  as corrective action costs are incurred upon receipt of invoices 
  8.30  for the corrective action costs. 
  8.31     (d) Money in the agricultural chemical response and 
  8.32  reimbursement account is appropriated to the commissioner to 
  8.33  make payments and reimbursements directed by the board under 
  8.34  this subdivision.  
  8.35     (e) The board may not make reimbursement greater than the 
  8.36  maximum allowed under paragraph (a) for all incidents on a 
  9.1   single site which: 
  9.2      (1) were not reported at the time of release but were 
  9.3   discovered and reported after July 1, 1989; and 
  9.4      (2) may have occurred prior to July 1, 1989, as determined 
  9.5   by the commissioner. 
  9.6      (f) The board may only reimburse an eligible person for 
  9.7   separate incidents within a single site if the commissioner 
  9.8   determines that each incident is completely separate and 
  9.9   distinct in respect of location within the single site or time 
  9.10  of occurrence. 
  9.11     Sec. 12.  Minnesota Statutes 2000, section 18E.06, is 
  9.12  amended to read: 
  9.13     18E.06 [REPORT.] 
  9.14     By September December 1 of each year, the agricultural 
  9.15  chemical response compensation board and the commissioner shall 
  9.16  submit to the house of representatives committee on ways and 
  9.17  means, the senate committee on finance, the house of 
  9.18  representatives and senate committees with jurisdiction over the 
  9.19  environment, natural resources, and agriculture, and the 
  9.20  environmental quality board a report detailing the activities 
  9.21  and reimbursements for which money from the account has been 
  9.22  spent during the previous year. 
  9.23     Sec. 13.  Minnesota Statutes 2000, section 21.111, is 
  9.24  amended by adding a subdivision to read: 
  9.25     Subd. 3a.  [INTERSTATE COOPERATION.] In order to best use 
  9.26  state resources, the commissioner may enter into agreements with 
  9.27  other seed potato certification entities to carry out the 
  9.28  purposes of sections 21.111 to 21.122.  Any agreement may 
  9.29  provide for field inspections, shipping point inspections, 
  9.30  winter tests, and other certification functions to be carried 
  9.31  out by personnel employed by either entity according to methods 
  9.32  determined by the certification entities of the respective 
  9.33  areas.  The commissioner may extend seed potato certification 
  9.34  services to states where growers wish to grow certified seed 
  9.35  potatoes and the state does not have a seed potato certification 
  9.36  program.  Any agreement must be reported to the chairs of the 
 10.1   legislative committees responsible for the budget or policy of 
 10.2   the seed potato inspection program and to the commissioner of 
 10.3   finance. 
 10.4      Sec. 14.  Minnesota Statutes 2000, section 31.101, as 
 10.5   amended by Laws 2001, First Special Session chapter 2, section 
 10.6   53, is amended to read: 
 10.7      31.101 [RULES; HEARINGS; UNIFORMITY WITH FEDERAL LAW.] 
 10.8      Subdivision 1.  [AUTHORITY.] The commissioner may 
 10.9   promulgate and amend rules for the efficient administration and 
 10.10  enforcement of the Minnesota Food Law.  The rules when 
 10.11  applicable must conform, insofar as practicable and consistent 
 10.12  with state law, with those promulgated under the federal law.  
 10.13  This rulemaking authority is in addition to that in sections 
 10.14  31.10, 31.11, and 31.12.  Rules adopted under this section may 
 10.15  be amended by the commissioner under chapter 14, subject to the 
 10.16  limitation in subdivision 7.  
 10.17     Subd. 2.  [HEARINGS.] Hearings authorized or required by 
 10.18  law must be conducted by the commissioner or an officer, agent, 
 10.19  or employee the commissioner designates for the purpose.  
 10.20     Subd. 3.  [PESTICIDE CHEMICAL RULES.] Federal pesticide 
 10.21  chemical regulations in effect on April 1, 2000 2001, adopted 
 10.22  under authority of the Federal Insecticide, Fungicide and 
 10.23  Rodenticide Act, as provided by United States Code, title 7, 
 10.24  chapter 6, are the pesticide chemical rules in this state.  
 10.25     Subd. 4.  [FOOD ADDITIVE RULES.] Federal food additive 
 10.26  regulations in effect on April 1, 2000 2001, as provided by Code 
 10.27  of Federal Regulations, title 21, parts 170 to 199, are the food 
 10.28  additive rules in this state.  
 10.29     Subd. 5.  [COLOR ADDITIVE RULES.] Federal color additive 
 10.30  regulations in effect on April 1, 2000 2001, as provided by Code 
 10.31  of Federal Regulations, title 21, parts 70 to 82, are the color 
 10.32  additive rules in this state.  
 10.33     Subd. 6.  [SPECIAL DIETARY USE RULES.] Federal special 
 10.34  dietary use regulations in effect on April 1, 2000 2001, as 
 10.35  provided by Code of Federal Regulations, title 21, parts 104 and 
 10.36  105, are the special dietary use rules in this state.  
 11.1      Subd. 7.  [FAIR PACKAGING AND LABELING RULES.] Federal 
 11.2   regulations in effect on April 1, 2000 2001, adopted under the 
 11.3   Fair Packaging and Labeling Act, as provided by United States 
 11.4   Code, title 15, sections 1451 to 1461, are the rules in this 
 11.5   state.  The commissioner may not adopt amendments to these rules 
 11.6   or adopt other rules which are contrary to the labeling 
 11.7   requirements for the net quantity of contents required pursuant 
 11.8   to section 4 of the Fair Packaging and Labeling Act and the 
 11.9   regulations adopted under that act.  
 11.10     Subd. 8.  [FOOD AND DRUGS RULES.] Applicable federal 
 11.11  regulations including recodification contained in Code of 
 11.12  Federal Regulations, title 21, parts 0-1299, Food and Drugs, in 
 11.13  effect April 1, 2000 2001, and not otherwise adopted herein, 
 11.14  also are adopted as food rules of this state.  
 11.15     Subd. 9.  [FISHERY PRODUCTS RULES.] Federal regulations in 
 11.16  effect on April 1, 2000 2001, as provided by Code of Federal 
 11.17  Regulations, title 50, parts 260 to 267, are incorporated as 
 11.18  part of the fishery products rules in this state for state 
 11.19  inspections performed under a cooperative agreement with the 
 11.20  United States Department of Commerce, National Marine Fisheries 
 11.21  Service.  
 11.22     Subd. 10.  [MEAT AND POULTRY RULES.] Federal regulations in 
 11.23  effect on April 1, 2000 2001, as provided by Code of Federal 
 11.24  Regulations, title 9, part 301, et seq., are incorporated as 
 11.25  part of the meat and poultry rules in this state. 
 11.26     Subd. 11.  [STANDARDS FOR FRESH FRUITS, VEGETABLES, AND 
 11.27  OTHER PRODUCTS.] Federal regulations in effect on April 1, 
 11.28  2000 2001, as provided by Code of Federal Regulations, title 7, 
 11.29  parts 51 and 52, are incorporated as part of the rules in this 
 11.30  state.  
 11.31     Subd. 12.  [DAIRY GRADE RULES; MANUFACTURING PLANT 
 11.32  STANDARDS.] Federal grading and inspection standards for 
 11.33  manufacturing dairy plants and products and amendments thereto 
 11.34  in effect on January April 1, 2001, as provided by Code of 
 11.35  Federal Regulations, title 7, part 58, subparts B-W, are adopted 
 11.36  as the dairy grade rules and manufacturing plant standards in 
 12.1   this state. 
 12.2      Sec. 15.  Minnesota Statutes 2000, section 31.102, 
 12.3   subdivision 1, is amended to read: 
 12.4      Subdivision 1.  [IDENTITY, QUANTITY, AND FILL OF CONTAINER 
 12.5   RULES.] Federal definitions and standards of identity, quality, 
 12.6   and fill of container in effect on April 1, 2000 2001, adopted 
 12.7   under authority of the federal act, are the definitions and 
 12.8   standards of identity, quality, and fill of container in this 
 12.9   state.  The rules may be amended by the commissioner under 
 12.10  chapter 14.  
 12.11     Sec. 16.  Minnesota Statutes 2000, section 31.103, 
 12.12  subdivision 1, is amended to read: 
 12.13     Subdivision 1.  [CONSUMER COMMODITIES LABELING RULES.] All 
 12.14  labels of consumer commodities must conform with the 
 12.15  requirements for the declaration of net quantity of contents of 
 12.16  section 4 of the Fair Packaging and Labeling Act (United States 
 12.17  Code, title 15, section 1451 et seq.) and federal regulations in 
 12.18  effect on April 1, 2000 2001, adopted under authority of that 
 12.19  act, except to the extent that the commissioner amends the rules 
 12.20  under chapter 14.  Consumer commodities exempted from the 
 12.21  requirements of section 4 of the Fair Packaging and Labeling Act 
 12.22  are also exempt from this subdivision.  
 12.23     Sec. 17.  Minnesota Statutes 2000, section 31.104, is 
 12.24  amended to read: 
 12.25     31.104 [FOOD LABELING EXEMPTION RULES.] 
 12.26     The commissioner shall promulgate rules exempting from any 
 12.27  labeling requirement food which is, in accordance with the 
 12.28  practice of the trade, to be processed, labeled, or repacked in 
 12.29  substantial quantities at establishments other than those where 
 12.30  originally processed or packed, on condition that such food is 
 12.31  not adulterated or misbranded upon removal from such processing, 
 12.32  labeling, or repacking establishment.  
 12.33     Federal regulations in effect on April 1, 2000 2001, 
 12.34  adopted under authority of the federal act relating to such 
 12.35  exemptions are effective in this state unless the commissioner 
 12.36  amends them.  The commissioner also may amend existing rules 
 13.1   concerning exemptions under chapter 14. 
 13.2      Sec. 18.  Minnesota Statutes 2000, section 38.331, 
 13.3   subdivision 2, is amended to read: 
 13.4      Subd. 2.  [COUNTY EXTENSION WORK.] "County extension work" 
 13.5   means educational programs and services provided by extension 
 13.6   agents educators in the areas of agriculture, economic and human 
 13.7   development, community; agricultural finance; economic 
 13.8   development; nutrition; youth leadership development including 
 13.9   4-H programs; leadership,; and environment and natural resources.
 13.10     Sec. 19.  Minnesota Statutes 2000, section 41B.03, 
 13.11  subdivision 1, is amended to read: 
 13.12     Subdivision 1.  [ELIGIBILITY GENERALLY.] To be eligible for 
 13.13  a program in sections 41B.01 to 41B.23: 
 13.14     (1) a borrower must be a resident of Minnesota or a 
 13.15  domestic family farm corporation or family farm partnership, as 
 13.16  defined in section 500.24, subdivision 2; and 
 13.17     (2) the borrower or one of the borrowers must be the 
 13.18  principal operator of the farm or, for a prospective homestead 
 13.19  redemption borrower, must have at one time been the principal 
 13.20  operator of a farm. 
 13.21     Sec. 20.  Minnesota Statutes 2000, section 41B.03, 
 13.22  subdivision 3, is amended to read: 
 13.23     Subd. 3.  [ELIGIBILITY FOR BEGINNING FARMER LOANS.] (a) In 
 13.24  addition to the requirements under subdivision 1, a prospective 
 13.25  borrower for a beginning farm loan in which the authority holds 
 13.26  an interest, must:  
 13.27     (1) have sufficient education, training, or experience in 
 13.28  the type of farming for which the loan is desired; 
 13.29     (2) have a total net worth, including assets and 
 13.30  liabilities of the borrower's spouse and dependents, of less 
 13.31  than $200,000 in 1991 and an amount in subsequent years which is 
 13.32  adjusted for inflation by multiplying $200,000 by the cumulative 
 13.33  inflation rate as determined by the United States All-Items 
 13.34  Consumer Price Index; 
 13.35     (3) demonstrate a need for the loan; 
 13.36     (4) demonstrate an ability to repay the loan; 
 14.1      (5) certify that the agricultural land to be purchased will 
 14.2   be used by the borrower for agricultural purposes; 
 14.3      (6) certify that farming will be the principal occupation 
 14.4   of the borrower; 
 14.5      (7) agree to participate in a farm management program 
 14.6   approved by the commissioner of agriculture for at least the 
 14.7   first five three years of the loan, if an approved program is 
 14.8   available within 45 miles from the borrower's residence.  The 
 14.9   commissioner may waive this requirement for any of the programs 
 14.10  administered by the authority if the participant requests a 
 14.11  waiver and has either a four-year degree in an agricultural 
 14.12  program or certification as an adult farm management instructor; 
 14.13  and 
 14.14     (8) agree to file an approved soil and water conservation 
 14.15  plan with the soil conservation service office in the county 
 14.16  where the land is located.  
 14.17     (b) If a borrower fails to participate under paragraph (a), 
 14.18  clause (7), the borrower is subject to penalty as determined by 
 14.19  the authority. 
 14.20     Sec. 21.  Minnesota Statutes 2001 Supplement, section 
 14.21  41B.046, subdivision 2, is amended to read: 
 14.22     Subd. 2.  [ESTABLISHMENT.] The authority shall establish 
 14.23  and implement a value-added agricultural product loan program to 
 14.24  help farmers finance the purchase of stock in a cooperative, 
 14.25  limited liability company, or limited liability partnership that 
 14.26  is proposing to build or purchase and operate an agricultural 
 14.27  product processing facility or already owns and operates an 
 14.28  agricultural product processing facility. 
 14.29     Sec. 22.  Minnesota Statutes 2000, section 223.16, 
 14.30  subdivision 5, is amended to read: 
 14.31     Subd. 5.  [GRAIN BUYER.] "Grain buyer" means a person who 
 14.32  purchases grain for the purpose of reselling the grain or 
 14.33  products made from the grain, with the exception of a person who 
 14.34  purchases seed grain for crop production or who purchases grain 
 14.35  as feed for the person's own livestock.