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; prohibiting tampering with 
  1.6             farm tractor clock-hour meters; prescribing civil and 
  1.7             criminal penalties; authorizing the northern counties 
  1.8             land use coordinating board to initiate a land use 
  1.9             management pilot project; amending Minnesota Statutes 
  1.10            2000, sections 17.90, subdivision 1a, by adding a 
  1.11            subdivision; 17B.03, subdivision 1; 18B.315, 
  1.12            subdivision 3; 18B.37, subdivisions 2, 5; 18E.02, by 
  1.13            adding a subdivision; 18E.03, subdivision 4; 18E.04, 
  1.14            subdivision 3; 18E.06; 21.111, by adding a 
  1.15            subdivision; 31.101, as amended; 31.102, subdivision 
  1.16            1; 31.103, subdivision 1; 31.104; 38.331, subdivision 
  1.17            2; 41B.03, subdivisions 1, 3; 223.16, subdivision 5; 
  1.18            Minnesota Statutes 2001 Supplement, sections 17.9442; 
  1.19            18B.36, subdivision 1; 18E.04, subdivisions 2, 4; 
  1.20            41B.046, subdivision 2; Laws 2001, chapter 206, 
  1.21            section 14; proposing coding for new law in Minnesota 
  1.22            Statutes, chapter 325E. 
  1.23  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.24     Section 1.  Minnesota Statutes 2000, section 17.90, 
  1.25  subdivision 1a, is amended to read: 
  1.26     Subd. 1a.  [AGRICULTURAL CONTRACT.] "Agricultural contract" 
  1.27  means any written contract between a contractor and a producer, 
  1.28  but does not include a contract between a grain buyer licensed 
  1.29  under section 223.17, subdivision 1, who purchases grain from a 
  1.30  producer as a merchant or seller of grain and does not contract 
  1.31  with the producer to grow or raise the crops producing the grain.
  1.32     Sec. 2.  Minnesota Statutes 2000, section 17.90, is amended 
  1.33  by adding a subdivision to read: 
  1.34     Subd. 3b.  [GRAIN.] "Grain" has the meaning given in 
  2.1   section 223.16, subdivision 4. 
  2.2      Sec. 3.  Minnesota Statutes 2001 Supplement, section 
  2.3   17.9442, is amended to read: 
  2.4      17.9442 [APPLICABILITY OF CONTRACT REQUIREMENTS.] 
  2.5      The requirements for the written disclosure of material 
  2.6   risks under section 17.91, subdivision 2; the three-day review 
  2.7   period under section 17.941; the cover sheet requirement under 
  2.8   section 17.942; and the contract readability requirements under 
  2.9   section 17.943, subdivision 1, do not apply to contracts which 
  2.10  provide for: 
  2.11     (1) the sale and purchase of a fixed amount of a commodity 
  2.12  for delivery at a set price; 
  2.13     (2) price-later cash sale and forward delivery grain 
  2.14  contracts for grain meeting certain specifications and does not 
  2.15  prescribe the time, manner, and nature of planting, cultivating, 
  2.16  and harvesting the crop producing the grain, including fixed 
  2.17  price forward contracts, minimum price contracts, mini-max 
  2.18  contracts, basis contracts, hedge-to-arrive contracts, and 
  2.19  delayed price contracts; 
  2.20     (3) contracts agreed to between a processor and an 
  2.21  accredited bargaining organization under sections 17.691 to 
  2.22  17.702; 
  2.23     (4) future futures contracts which involve the sale or 
  2.24  purchase of a standardized quantity of a commodity for future 
  2.25  delivery on a regulated commodity exchange; 
  2.26     (5) agricultural marketing contracts between a capital 
  2.27  stock cooperative and its members under section 308A.205; or 
  2.28     (6) occasional sales between persons who produce or cause 
  2.29  to be produced food, feed, or fiber in a quantity beyond their 
  2.30  own family use. 
  2.31     Sec. 4.  Minnesota Statutes 2000, section 17B.03, 
  2.32  subdivision 1, is amended to read: 
  2.33     Subdivision 1.  [COMMISSIONER'S POWERS.] The commissioner 
  2.34  of agriculture shall exercise general supervision over the 
  2.35  inspection, grading, weighing, sampling, and analysis of 
  2.36  grain within the state of Minnesota subject to the provisions of 
  3.1   the United States Grain Standards Act of 1976 and the rules 
  3.2   promulgated thereunder by the United States Department of 
  3.3   Agriculture.  This activity may take place within or outside the 
  3.4   state of Minnesota. 
  3.5      Sec. 5.  Minnesota Statutes 2000, section 18B.315, 
  3.6   subdivision 3, is amended to read: 
  3.7      Subd. 3.  [APPLICATION.] (a) A person must apply to the 
  3.8   commissioner for an aquatic pest control license on forms and in 
  3.9   a manner required by the commissioner.  The commissioner shall 
  3.10  require the applicant to pass a written, closed-book, monitored 
  3.11  examination or oral examination, or both, and may also require a 
  3.12  practical demonstration regarding aquatic pest control.  The 
  3.13  commissioner shall establish the examination procedure, 
  3.14  including the phases and contents of the examination. 
  3.15     (b) The commissioner may license a person as a master under 
  3.16  an aquatic pest control license if the person has the necessary 
  3.17  qualifications through knowledge and experience to properly 
  3.18  plan, determine, and supervise the selection and application of 
  3.19  pesticides in aquatic pest control.  To demonstrate the 
  3.20  qualifications and become licensed as a master under the aquatic 
  3.21  pest control license, a person must: 
  3.22     (1) pass a closed-book test administered by the 
  3.23  commissioner; 
  3.24     (2) have direct experience as a licensed journeyman under 
  3.25  an aquatic pest control license or as a licensed pesticide 
  3.26  applicator for at least two years by this state or a state with 
  3.27  equivalent certification requirements, or have at least 1,600 
  3.28  hours of qualifying experience in the previous four years as 
  3.29  determined by the commissioner; and 
  3.30     (3) show practical knowledge and field experience under 
  3.31  clause (2) in the actual selection and application of pesticides 
  3.32  under varying conditions. 
  3.33     (c) The commissioner may license a person as a journeyman 
  3.34  under an aquatic pest control license if the person: 
  3.35     (1) has the necessary qualifications in the practical 
  3.36  selection and application of pesticides; 
  4.1      (2) has passed a closed-book examination given by the 
  4.2   commissioner; and 
  4.3      (3) is engaged as an employee of or is working under the 
  4.4   direction of a person licensed as a master under an aquatic pest 
  4.5   control license. 
  4.6      Sec. 6.  Minnesota Statutes 2001 Supplement, section 
  4.7   18B.36, subdivision 1, is amended to read: 
  4.8      Subdivision 1.  [REQUIREMENT.] (a) Except for a licensed 
  4.9   commercial or noncommercial applicator, only a certified private 
  4.10  applicator may use a restricted use pesticide to produce an 
  4.11  agricultural commodity: 
  4.12     (1) as a traditional exchange of services without financial 
  4.13  compensation; 
  4.14     (2) on a site owned, rented, or managed by the person or 
  4.15  the person's employees; or 
  4.16     (3) when the private applicator is one of two or fewer 
  4.17  specified individuals employed as agricultural employment as 
  4.18  defined by section 268.035, subdivision 2, employees and the 
  4.19  owner or operator is a certified private applicator or is 
  4.20  licensed as a noncommercial applicator. 
  4.21     (b) A private applicator may not purchase a restricted use 
  4.22  pesticide without presenting a certified private applicator card 
  4.23  or the card number. 
  4.24     Sec. 7.  Minnesota Statutes 2000, section 18B.37, 
  4.25  subdivision 2, is amended to read: 
  4.26     Subd. 2.  [COMMERCIAL AND NONCOMMERCIAL APPLICATORS.] (a) A 
  4.27  commercial or noncommercial applicator, or the applicator's 
  4.28  authorized agent, must maintain a record of pesticides used on 
  4.29  each site.  Noncommercial applicators must keep records of 
  4.30  restricted use pesticides.  The record must include the: 
  4.31     (1) date of the pesticide use; 
  4.32     (2) time the pesticide application was completed; 
  4.33     (3) brand name of the pesticide, the United States 
  4.34  Environmental Protection Agency registration number, and dosage 
  4.35  used; 
  4.36     (4) number of units treated; 
  5.1      (5) temperature, wind speed, and wind direction; 
  5.2      (6) location of the site where the pesticide was applied; 
  5.3      (7) name and address of the customer; 
  5.4      (8) name and signature of applicator, name of company, 
  5.5   license number of applicator, and address of applicator company; 
  5.6   and 
  5.7      (9) any other information required by the commissioner. 
  5.8      (b) Portions of records not relevant to a specific type of 
  5.9   application may be omitted upon approval from the commissioner.  
  5.10     (c) All information for this record requirement must be 
  5.11  contained in a single page document for each pesticide 
  5.12  application, except a map may be attached to identify treated 
  5.13  areas.  For the rights-of-way and wood preservative categories, 
  5.14  the required record may not exceed five pages.  An invoice 
  5.15  containing the required information may constitute the required 
  5.16  record.  The commissioner shall make sample forms available to 
  5.17  meet the requirements of this paragraph. 
  5.18     (d) A commercial applicator must give a copy of the record 
  5.19  to the customer.  
  5.20     (e) Records must be retained by the applicator, company, or 
  5.21  authorized agent for five years after the date of treatment.  
  5.22     (f) Records must be filed with the commissioner at least 
  5.23  twice annually. 
  5.24     Sec. 8.  Minnesota Statutes 2000, section 18B.37, 
  5.25  subdivision 5, is amended to read: 
  5.26     Subd. 5.  [INSPECTION OF RECORDS.] The commissioner may 
  5.27  enter a commercial, noncommercial, or structural pest control 
  5.28  applicator's business and inspect the records required in this 
  5.29  section at any reasonable time and may make copies of the 
  5.30  records.  Unless required for enforcement of this chapter, Once 
  5.31  it is filed with the commissioner, the information in the 
  5.32  records in this section is private or nonpublic public and 
  5.33  accessible through the commissioner, except for name and address 
  5.34  of customer. 
  5.35     Sec. 9.  Minnesota Statutes 2000, section 18E.02, is 
  5.36  amended by adding a subdivision to read: 
  6.1      Subd. 5a.  [EMERGENCY INCIDENT.] "Emergency incident" means 
  6.2   an incident resulting from a flood, fire, tornado, 
  6.3   transportation accident, storage container rupture, or other 
  6.4   event as determined by the commissioner that immediately, 
  6.5   uncontrollably, and unpredictably releases agricultural 
  6.6   chemicals into the environment and which may cause unreasonable 
  6.7   adverse effects on the public health or the environment. 
  6.8      Sec. 10.  Minnesota Statutes 2000, section 18E.03, 
  6.9   subdivision 4, is amended to read: 
  6.10     Subd. 4.  [FEE.] (a) The response and reimbursement fee 
  6.11  consists of the surcharges and any adjustments made by the 
  6.12  commissioner in this subdivision and shall be collected by the 
  6.13  commissioner.  The amount of the response and reimbursement fee 
  6.14  shall be determined and imposed annually by the commissioner as 
  6.15  required to satisfy the requirements in subdivision 3.  The 
  6.16  commissioner shall adjust the amount of the surcharges imposed 
  6.17  in proportion to the amount of the surcharges listed in this 
  6.18  subdivision.  License application categories under paragraph (d) 
  6.19  must be charged in proportion to the amount of surcharges 
  6.20  imposed up to a maximum of 50 percent of the license fees set 
  6.21  under chapters 18B and 18C. 
  6.22     (b) The commissioner shall impose a surcharge on pesticides 
  6.23  registered under chapter 18B to be collected as a surcharge on 
  6.24  the registration application fee under section 18B.26, 
  6.25  subdivision 3, that is equal to 0.1 percent of sales of the 
  6.26  pesticide in the state and sales of pesticides for use in the 
  6.27  state during the previous calendar year, except the surcharge 
  6.28  may not be imposed on pesticides that are sanitizers or 
  6.29  disinfectants as determined by the commissioner.  No surcharge 
  6.30  is required if the surcharge amount based on percent of annual 
  6.31  gross sales is less than $10.  The registrant shall determine 
  6.32  when and which pesticides are sold or used in this state.  The 
  6.33  registrant shall secure sufficient sales information of 
  6.34  pesticides distributed into this state from distributors and 
  6.35  dealers, regardless of distributor location, to make a 
  6.36  determination.  Sales of pesticides in this state and sales of 
  7.1   pesticides for use in this state by out-of-state distributors 
  7.2   are not exempt and must be included in the registrant's annual 
  7.3   report, as required under section 18B.26, subdivision 3, 
  7.4   paragraph (c), and fees shall be paid by the registrant based 
  7.5   upon those reported sales.  Sales of pesticides in the state for 
  7.6   use outside of the state are exempt from the surcharge in this 
  7.7   paragraph if the registrant properly documents the sale location 
  7.8   and the distributors. 
  7.9      (c) The commissioner shall impose a ten cents per ton 
  7.10  surcharge on the inspection fee under section 18C.425, 
  7.11  subdivision 6, for fertilizers, soil amendments, and plant 
  7.12  amendments.  
  7.13     (d) The commissioner shall impose a surcharge on the 
  7.14  license application of persons licensed under chapters 18B and 
  7.15  18C consisting of: 
  7.16     (1) a $75 surcharge for each site where pesticides are 
  7.17  stored or distributed, to be imposed as a surcharge on pesticide 
  7.18  dealer application fees up to a maximum of 50 percent of the 
  7.19  license fee required under section 18B.31, subdivision 5; 
  7.20     (2) a $75 surcharge for each site where a fertilizer, plant 
  7.21  amendment, or soil amendment is distributed, to be imposed on 
  7.22  persons licensed up to a maximum of 50 percent of the license 
  7.23  fee required under sections 18C.415 and 18C.425; 
  7.24     (3) a $50 surcharge to be imposed on a structural pest 
  7.25  control applicator license application up to a maximum of 50 
  7.26  percent of the license fee required under section 18B.32, 
  7.27  subdivision 6, for business license applications only; 
  7.28     (4) a $20 surcharge to be imposed on commercial applicator 
  7.29  license application fees up to a maximum of 50 percent of the 
  7.30  license fee required under section 18B.33, subdivision 7; 
  7.31     (5) a $20 surcharge to be imposed on noncommercial 
  7.32  applicator license application fees up to a maximum of 50 
  7.33  percent of the license fee required under section 18B.34, 
  7.34  subdivision 5, except a surcharge may not be imposed on a 
  7.35  noncommercial applicator that is a state agency, political 
  7.36  subdivision of the state, the federal government, or an agency 
  8.1   of the federal government; and 
  8.2      (6) a $20 surcharge to be imposed on aquatic pest control 
  8.3   licenses up to a maximum of 50 percent of the license fee 
  8.4   required under section 18B.315. 
  8.5      (e) A $1,000 fee shall be imposed on each site where 
  8.6   pesticides are stored and sold for use outside of the state 
  8.7   unless:  
  8.8      (1) the distributor properly documents that it has less 
  8.9   than $2,000,000 per year in wholesale value of pesticides stored 
  8.10  and transferred through the site; or 
  8.11     (2) the registrant pays the surcharge under paragraph (b) 
  8.12  and the registration fee under section 18B.26, subdivision 3, 
  8.13  for all of the pesticides stored at the site and sold for use 
  8.14  outside of the state. 
  8.15     (f) Paragraphs (c) to (e) apply to sales, licenses issued, 
  8.16  applications received for licenses, and inspection fees imposed 
  8.17  on or after July 1, 1990. 
  8.18     Sec. 11.  Minnesota Statutes 2001 Supplement, section 
  8.19  18E.04, subdivision 2, is amended to read: 
  8.20     Subd. 2.  [PAYMENT OF CORRECTIVE ACTION COSTS.] (a) On 
  8.21  request by an eligible person, the board may pay the eligible 
  8.22  person for the reasonable and necessary cash disbursements for 
  8.23  corrective action costs incurred by the eligible person as 
  8.24  provided under subdivision 4 if the board determines: 
  8.25     (1) the eligible person pays the first $1,000 of the 
  8.26  corrective action costs; 
  8.27     (2) the eligible person provides the board with a sworn 
  8.28  affidavit and other convincing evidence that the eligible person 
  8.29  is unable to pay additional corrective action costs; 
  8.30     (3) the eligible person continues to assume responsibility 
  8.31  for carrying out the requirements of corrective action orders 
  8.32  issued to the eligible person or that are in effect; 
  8.33     (4) the incident was reported as required in chapters 18B, 
  8.34  18C, and 18D; and 
  8.35     (5) the eligible person submits an application for payment 
  8.36  or reimbursement to the department within three years of (i) 
  9.1   incurring eligible corrective action costs, or (ii) approval of 
  9.2   a corrective action report design, whichever is later. 
  9.3      (b) The eligible person must submit an application for 
  9.4   payment or reimbursement of eligible cost incurred prior to July 
  9.5   1, 2001, no later than June 1, 2004. 
  9.6      (c) An eligible person is not eligible for payment or 
  9.7   reimbursement and must refund amounts paid or reimbursed by the 
  9.8   board if false statements or misrepresentations are made in the 
  9.9   affidavit or other evidence submitted to the commissioner to 
  9.10  show an inability to pay corrective action costs.  
  9.11     (d) The board may pay the eligible person and one or more 
  9.12  designees by multiparty check. 
  9.13     Sec. 12.  Minnesota Statutes 2000, section 18E.04, 
  9.14  subdivision 3, is amended to read: 
  9.15     Subd. 3.  [PARTIAL REIMBURSEMENT.] (a) If the unencumbered 
  9.16  balance of the account drops below $2,000,000, the board may 
  9.17  only pay or reimburse an eligible person up to $100,000 within 
  9.18  the same fiscal year. 
  9.19     (b) If the board determines that an incident was caused by 
  9.20  a violation of chapter 18B, 18C, or 18D, the board may reimburse 
  9.21  or pay a portion of the corrective action costs of the eligible 
  9.22  person based on the culpability of the eligible person and the 
  9.23  percentage of the costs not attributable to the violation.  
  9.24     Sec. 13.  Minnesota Statutes 2001 Supplement, section 
  9.25  18E.04, subdivision 4, is amended to read: 
  9.26     Subd. 4.  [REIMBURSEMENT PAYMENTS.] (a) The board shall pay 
  9.27  a person that is eligible for reimbursement or payment under 
  9.28  subdivisions 1, 2, and 3 from the agricultural chemical response 
  9.29  and reimbursement account for:  
  9.30     (1) 90 80 percent of the total reasonable and necessary 
  9.31  corrective action costs greater than $1,000 and less than or 
  9.32  equal to $200,000; 
  9.33     (2) 80 percent of the total reasonable and necessary 
  9.34  corrective action costs greater than $200,000 but less than or 
  9.35  equal to $300,000; and 
  9.36     (3) 60 percent of the total reasonable and necessary 
 10.1   corrective action costs greater than $300,000 but less than or 
 10.2   equal to $350,000.  
 10.3      (b) A reimbursement or payment may not be made until the 
 10.4   board has determined that the costs are reasonable and are for a 
 10.5   reimbursement of the costs that were actually incurred. 
 10.6      (c) The board may make periodic payments or reimbursements 
 10.7   as corrective action costs are incurred upon receipt of invoices 
 10.8   for the corrective action costs. 
 10.9      (d) Money in the agricultural chemical response and 
 10.10  reimbursement account is appropriated to the commissioner to 
 10.11  make payments and reimbursements directed by the board under 
 10.12  this subdivision.  
 10.13     (e) The board may not make reimbursement greater than the 
 10.14  maximum allowed under paragraph (a) for all incidents on a 
 10.15  single site which: 
 10.16     (1) were not reported at the time of release but were 
 10.17  discovered and reported after July 1, 1989; and 
 10.18     (2) may have occurred prior to July 1, 1989, as determined 
 10.19  by the commissioner. 
 10.20     (f) The board may only reimburse an eligible person for 
 10.21  separate incidents within a single site if the commissioner 
 10.22  determines that each incident is completely separate and 
 10.23  distinct in respect of location within the single site or time 
 10.24  of occurrence. 
 10.25     Sec. 14.  Minnesota Statutes 2000, section 18E.06, is 
 10.26  amended to read: 
 10.27     18E.06 [REPORT.] 
 10.28     By September December 1 of each year, the agricultural 
 10.29  chemical response compensation board and the commissioner shall 
 10.30  submit to the house of representatives committee on ways and 
 10.31  means, the senate committee on finance, the house of 
 10.32  representatives and senate committees with jurisdiction over the 
 10.33  environment, natural resources, and agriculture, and the 
 10.34  environmental quality board a report detailing the activities 
 10.35  and reimbursements for which money from the account has been 
 10.36  spent during the previous year. 
 11.1      Sec. 15.  Minnesota Statutes 2000, section 21.111, is 
 11.2   amended by adding a subdivision to read: 
 11.3      Subd. 3a.  [INTERSTATE COOPERATION.] In order to best use 
 11.4   state resources, the commissioner may enter into agreements with 
 11.5   other seed potato certification entities to carry out the 
 11.6   purposes of sections 21.111 to 21.122.  Any agreement may 
 11.7   provide for field inspections, shipping point inspections, 
 11.8   winter tests, and other certification functions to be carried 
 11.9   out by personnel employed by either entity according to methods 
 11.10  determined by the certification entities of the respective 
 11.11  areas.  The commissioner may extend seed potato certification 
 11.12  services to states where growers wish to grow certified seed 
 11.13  potatoes and the state does not have a seed potato certification 
 11.14  program.  Any agreement must be reported to the chairs of the 
 11.15  legislative committees responsible for the budget or policy of 
 11.16  the seed potato inspection program and to the commissioner of 
 11.17  finance. 
 11.18     Sec. 16.  Minnesota Statutes 2000, section 31.101, as 
 11.19  amended by Laws 2001, First Special Session chapter 2, section 
 11.20  53, is amended to read: 
 11.21     31.101 [RULES; HEARINGS; UNIFORMITY WITH FEDERAL LAW.] 
 11.22     Subdivision 1.  [AUTHORITY.] The commissioner may 
 11.23  promulgate and amend rules for the efficient administration and 
 11.24  enforcement of the Minnesota Food Law.  The rules when 
 11.25  applicable must conform, insofar as practicable and consistent 
 11.26  with state law, with those promulgated under the federal law.  
 11.27  This rulemaking authority is in addition to that in sections 
 11.28  31.10, 31.11, and 31.12.  Rules adopted under this section may 
 11.29  be amended by the commissioner under chapter 14, subject to the 
 11.30  limitation in subdivision 7.  
 11.31     Subd. 2.  [HEARINGS.] Hearings authorized or required by 
 11.32  law must be conducted by the commissioner or an officer, agent, 
 11.33  or employee the commissioner designates for the purpose.  
 11.34     Subd. 3.  [PESTICIDE CHEMICAL RULES.] Federal pesticide 
 11.35  chemical regulations in effect on April 1, 2000 2001, adopted 
 11.36  under authority of the Federal Insecticide, Fungicide and 
 12.1   Rodenticide Act, as provided by United States Code, title 7, 
 12.2   chapter 6, are the pesticide chemical rules in this state.  
 12.3      Subd. 4.  [FOOD ADDITIVE RULES.] Federal food additive 
 12.4   regulations in effect on April 1, 2000 2001, as provided by Code 
 12.5   of Federal Regulations, title 21, parts 170 to 199, are the food 
 12.6   additive rules in this state.  
 12.7      Subd. 5.  [COLOR ADDITIVE RULES.] Federal color additive 
 12.8   regulations in effect on April 1, 2000 2001, as provided by Code 
 12.9   of Federal Regulations, title 21, parts 70 to 82, are the color 
 12.10  additive rules in this state.  
 12.11     Subd. 6.  [SPECIAL DIETARY USE RULES.] Federal special 
 12.12  dietary use regulations in effect on April 1, 2000 2001, as 
 12.13  provided by Code of Federal Regulations, title 21, parts 104 and 
 12.14  105, are the special dietary use rules in this state.  
 12.15     Subd. 7.  [FAIR PACKAGING AND LABELING RULES.] Federal 
 12.16  regulations in effect on April 1, 2000 2001, adopted under the 
 12.17  Fair Packaging and Labeling Act, as provided by United States 
 12.18  Code, title 15, sections 1451 to 1461, are the rules in this 
 12.19  state.  The commissioner may not adopt amendments to these rules 
 12.20  or adopt other rules which are contrary to the labeling 
 12.21  requirements for the net quantity of contents required pursuant 
 12.22  to section 4 of the Fair Packaging and Labeling Act and the 
 12.23  regulations adopted under that act.  
 12.24     Subd. 8.  [FOOD AND DRUGS RULES.] Applicable federal 
 12.25  regulations including recodification contained in Code of 
 12.26  Federal Regulations, title 21, parts 0-1299, Food and Drugs, in 
 12.27  effect April 1, 2000 2001, and not otherwise adopted herein, 
 12.28  also are adopted as food rules of this state.  
 12.29     Subd. 9.  [FISHERY PRODUCTS RULES.] Federal regulations in 
 12.30  effect on April 1, 2000 2001, as provided by Code of Federal 
 12.31  Regulations, title 50, parts 260 to 267, are incorporated as 
 12.32  part of the fishery products rules in this state for state 
 12.33  inspections performed under a cooperative agreement with the 
 12.34  United States Department of Commerce, National Marine Fisheries 
 12.35  Service.  
 12.36     Subd. 10.  [MEAT AND POULTRY RULES.] Federal regulations in 
 13.1   effect on April 1, 2000 2001, as provided by Code of Federal 
 13.2   Regulations, title 9, part 301, et seq., are incorporated as 
 13.3   part of the meat and poultry rules in this state. 
 13.4      Subd. 11.  [STANDARDS FOR FRESH FRUITS, VEGETABLES, AND 
 13.5   OTHER PRODUCTS.] Federal regulations in effect on April 1, 
 13.6   2000 2001, as provided by Code of Federal Regulations, title 7, 
 13.7   parts 51 and 52, are incorporated as part of the rules in this 
 13.8   state.  
 13.9      Subd. 12.  [DAIRY GRADE RULES; MANUFACTURING PLANT 
 13.10  STANDARDS.] Federal grading and inspection standards for 
 13.11  manufacturing dairy plants and products and amendments thereto 
 13.12  in effect on January April 1, 2001, as provided by Code of 
 13.13  Federal Regulations, title 7, part 58, subparts B-W, are adopted 
 13.14  as the dairy grade rules and manufacturing plant standards in 
 13.15  this state. 
 13.16     Sec. 17.  Minnesota Statutes 2000, section 31.102, 
 13.17  subdivision 1, is amended to read: 
 13.18     Subdivision 1.  [IDENTITY, QUANTITY, AND FILL OF CONTAINER 
 13.19  RULES.] Federal definitions and standards of identity, quality, 
 13.20  and fill of container in effect on April 1, 2000 2001, adopted 
 13.21  under authority of the federal act, are the definitions and 
 13.22  standards of identity, quality, and fill of container in this 
 13.23  state.  The rules may be amended by the commissioner under 
 13.24  chapter 14.  
 13.25     Sec. 18.  Minnesota Statutes 2000, section 31.103, 
 13.26  subdivision 1, is amended to read: 
 13.27     Subdivision 1.  [CONSUMER COMMODITIES LABELING RULES.] All 
 13.28  labels of consumer commodities must conform with the 
 13.29  requirements for the declaration of net quantity of contents of 
 13.30  section 4 of the Fair Packaging and Labeling Act (United States 
 13.31  Code, title 15, section 1451 et seq.) and federal regulations in 
 13.32  effect on April 1, 2000 2001, adopted under authority of that 
 13.33  act, except to the extent that the commissioner amends the rules 
 13.34  under chapter 14.  Consumer commodities exempted from the 
 13.35  requirements of section 4 of the Fair Packaging and Labeling Act 
 13.36  are also exempt from this subdivision.  
 14.1      Sec. 19.  Minnesota Statutes 2000, section 31.104, is 
 14.2   amended to read: 
 14.3      31.104 [FOOD LABELING EXEMPTION RULES.] 
 14.4      The commissioner shall promulgate rules exempting from any 
 14.5   labeling requirement food which is, in accordance with the 
 14.6   practice of the trade, to be processed, labeled, or repacked in 
 14.7   substantial quantities at establishments other than those where 
 14.8   originally processed or packed, on condition that such food is 
 14.9   not adulterated or misbranded upon removal from such processing, 
 14.10  labeling, or repacking establishment.  
 14.11     Federal regulations in effect on April 1, 2000 2001, 
 14.12  adopted under authority of the federal act relating to such 
 14.13  exemptions are effective in this state unless the commissioner 
 14.14  amends them.  The commissioner also may amend existing rules 
 14.15  concerning exemptions under chapter 14. 
 14.16     Sec. 20.  Minnesota Statutes 2000, section 38.331, 
 14.17  subdivision 2, is amended to read: 
 14.18     Subd. 2.  [COUNTY EXTENSION WORK.] "County extension work" 
 14.19  means educational programs and services provided by extension 
 14.20  agents educators in the areas of agriculture, economic and human 
 14.21  development, community; agricultural finance; economic 
 14.22  development; nutrition; youth leadership development including 
 14.23  4-H programs; leadership,; and environment and natural resources.
 14.24     Sec. 21.  Minnesota Statutes 2000, section 41B.03, 
 14.25  subdivision 1, is amended to read: 
 14.26     Subdivision 1.  [ELIGIBILITY GENERALLY.] To be eligible for 
 14.27  a program in sections 41B.01 to 41B.23: 
 14.28     (1) a borrower must be a resident of Minnesota or a 
 14.29  domestic family farm corporation or family farm partnership, as 
 14.30  defined in section 500.24, subdivision 2; and 
 14.31     (2) the borrower or one of the borrowers must be the 
 14.32  principal operator of the farm or, for a prospective homestead 
 14.33  redemption borrower, must have at one time been the principal 
 14.34  operator of a farm. 
 14.35     Sec. 22.  Minnesota Statutes 2000, section 41B.03, 
 14.36  subdivision 3, is amended to read: 
 15.1      Subd. 3.  [ELIGIBILITY FOR BEGINNING FARMER LOANS.] (a) In 
 15.2   addition to the requirements under subdivision 1, a prospective 
 15.3   borrower for a beginning farm loan in which the authority holds 
 15.4   an interest, must:  
 15.5      (1) have sufficient education, training, or experience in 
 15.6   the type of farming for which the loan is desired; 
 15.7      (2) have a total net worth, including assets and 
 15.8   liabilities of the borrower's spouse and dependents, of less 
 15.9   than $200,000 in 1991 and an amount in subsequent years which is 
 15.10  adjusted for inflation by multiplying $200,000 by the cumulative 
 15.11  inflation rate as determined by the United States All-Items 
 15.12  Consumer Price Index; 
 15.13     (3) demonstrate a need for the loan; 
 15.14     (4) demonstrate an ability to repay the loan; 
 15.15     (5) certify that the agricultural land to be purchased will 
 15.16  be used by the borrower for agricultural purposes; 
 15.17     (6) certify that farming will be the principal occupation 
 15.18  of the borrower; 
 15.19     (7) agree to participate in a farm management program 
 15.20  approved by the commissioner of agriculture for at least the 
 15.21  first five three years of the loan, if an approved program is 
 15.22  available within 45 miles from the borrower's residence.  The 
 15.23  commissioner may waive this requirement for any of the programs 
 15.24  administered by the authority if the participant requests a 
 15.25  waiver and has either a four-year degree in an agricultural 
 15.26  program or certification as an adult farm management instructor; 
 15.27  and 
 15.28     (8) agree to file an approved soil and water conservation 
 15.29  plan with the soil conservation service office in the county 
 15.30  where the land is located.  
 15.31     (b) If a borrower fails to participate under paragraph (a), 
 15.32  clause (7), the borrower is subject to penalty as determined by 
 15.33  the authority. 
 15.34     Sec. 23.  Minnesota Statutes 2001 Supplement, section 
 15.35  41B.046, subdivision 2, is amended to read: 
 15.36     Subd. 2.  [ESTABLISHMENT.] The authority shall establish 
 16.1   and implement a value-added agricultural product loan program to 
 16.2   help farmers finance the purchase of stock in a cooperative, 
 16.3   limited liability company, or limited liability partnership that 
 16.4   is proposing to build or purchase and operate an agricultural 
 16.5   product processing facility or already owns and operates an 
 16.6   agricultural product processing facility. 
 16.7      Sec. 24.  Minnesota Statutes 2000, section 223.16, 
 16.8   subdivision 5, is amended to read: 
 16.9      Subd. 5.  [GRAIN BUYER.] "Grain buyer" means a person who 
 16.10  purchases grain for the purpose of reselling the grain or 
 16.11  products made from the grain, with the exception of a person who 
 16.12  purchases seed grain for crop production or who purchases grain 
 16.13  as feed for the person's own livestock. 
 16.14     Sec. 25.  [325E.165] [DEFINITIONS.] 
 16.15     Subdivision 1.  [SCOPE.] For the purposes of sections 
 16.16  325E.165 to 325E.167, the terms defined in this section have the 
 16.17  meanings given them. 
 16.18     Subd. 2.  [FARM TRACTOR.] "Farm tractor" means a 
 16.19  self-propelled vehicle that is designed primarily for pulling or 
 16.20  propelling agricultural machinery and implements and is used 
 16.21  principally in the occupation or business of farming, including 
 16.22  an implement of husbandry, as defined in section 169.01, 
 16.23  subdivision 55, that is self-propelled. 
 16.24     Subd. 3.  [PERSON.] "Person" means an individual, firm, 
 16.25  partnership, incorporated and unincorporated association, or 
 16.26  other legal or commercial entity. 
 16.27     Sec. 26.  [325E.166] [CLOCK-HOUR METERS; PROHIBITED ACTS.] 
 16.28     Subdivision 1.  [TAMPERING.] No person shall, with intent 
 16.29  to defraud, knowingly tamper with, adjust, alter, change, set 
 16.30  back, disconnect, or fail to connect the clock-hour meter of a 
 16.31  farm tractor, or cause any of the foregoing to occur to a 
 16.32  clock-hour meter of a farm tractor, so as to reflect fewer hours 
 16.33  than the farm tractor has actually been in operation. 
 16.34     Subd. 2.  [OPERATION WITH DISCONNECTED OR NONFUNCTIONAL 
 16.35  METER.] No person shall, with intent to defraud, operate a farm 
 16.36  tractor knowing that the clock-hour meter of the farm tractor is 
 17.1   disconnected or nonfunctional. 
 17.2      Subd. 3.  [TAMPERING DEVICE.] No person shall advertise for 
 17.3   sale, sell, use, or install on any part of a farm tractor or on 
 17.4   a clock-hour meter in a farm tractor a device that causes the 
 17.5   clock-hour meter to register any hours of operation other than 
 17.6   the true hours of operation that the clock-hour meter was 
 17.7   designed to measure. 
 17.8      Subd. 4.  [DISCLOSURE.] No person shall sell or offer for 
 17.9   sale a farm tractor with knowledge that the hours registered on 
 17.10  the clock-hour meter have been altered so as to reflect fewer 
 17.11  hours than the farm tractor has actually been in operation, 
 17.12  without disclosing the fact to prospective purchasers. 
 17.13     Subd. 5.  [CONSPIRACY.] No person shall conspire with 
 17.14  another person to violate this section. 
 17.15     Sec. 27.  [325E.167] [PENALTIES; REMEDIES.] 
 17.16     Subdivision 1.  [CRIMINAL PENALTY.] A person who is found 
 17.17  to have violated sections 325E.165 to 325E.167 is guilty of a 
 17.18  gross misdemeanor. 
 17.19     Subd. 2.  [CIVIL PENALTY.] In addition to the penalties 
 17.20  provided in subdivision 1, any person who is found to have 
 17.21  violated sections 325E.165 to 325E.167 is subject to the 
 17.22  penalties in section 8.31. 
 17.23     Subd. 3.  [PRIVATE RIGHT OF ACTION.] A person injured by a 
 17.24  violation of sections 325E.165 to 325E.167 may recover the 
 17.25  actual damages sustained together with costs and disbursements, 
 17.26  including reasonable attorney fees.  The court in its discretion 
 17.27  may increase the award of damages to an amount not to exceed 
 17.28  three times the actual damages sustained or $1,500, whichever is 
 17.29  greater. 
 17.30     Sec. 28.  Laws 2001, chapter 206, section 14, is amended to 
 17.31  read: 
 17.32     Sec. 14.  [EXEMPT ACREAGE IN LAND EXCHANGE.] 
 17.33     The city of Bird Island Renville county may exchange a 
 17.34  parcel of land owned by it or acquired for it by a qualified 
 17.35  intermediary, for a parcel of agricultural real estate that is 
 17.36  owned by an individual exempt under Minnesota Statutes, section 
 18.1   500.221, based on ownership being lawfully acquired prior to 
 18.2   June 1, 1981.  Since there is no exception for exchanged 
 18.3   property under Minnesota Statutes, section 500.221, the exchange 
 18.4   of the city's parcel would result in the loss of exemption for 
 18.5   the exchanged property.  Accordingly, this act provides that the 
 18.6   agricultural land being exchanged for the parcel that is 
 18.7   currently exempt shall also be exempt under Minnesota Statutes, 
 18.8   section 500.221, as if it had been purchased by the owner prior 
 18.9   to June 1, 1981.  Such exchanged parcel shall have exactly the 
 18.10  same rights under the statute as the parcel to be exchanged and 
 18.11  the deeds used to effectuate the transaction may so state. 
 18.12     Sec. 29.  [NORTHERN COUNTIES LAND USE COORDINATING BOARD; 
 18.13  LAND USE MANAGEMENT; PILOT PROJECT.] 
 18.14     (a) The northern counties land use coordinating board may 
 18.15  initiate a pilot project to promote cooperative efforts among 
 18.16  county, state, federal, and local units of government and 
 18.17  private citizens regarding land use management issues.  The 
 18.18  office of strategic and long-range planning must coordinate the 
 18.19  activities of state agencies, which shall include the 
 18.20  departments of agriculture, commerce, natural resources, trade 
 18.21  and economic development, board of soil and water resources, 
 18.22  iron range resources and rehabilitation board, environmental 
 18.23  quality board, pollution control agency, and the office of 
 18.24  environmental assistance. 
 18.25     (b) The board must also solicit cooperation with Canadian 
 18.26  officials who represent areas contiguous to the region and with 
 18.27  organizations representing recreational, agricultural, mining, 
 18.28  forestry, and tourism interests within the affected boundaries 
 18.29  of the northern counties land use coordinating board. 
 18.30     (c) The legislature also encourages participation by 
 18.31  appropriate federal agencies. 
 18.32     (d) The objectives of the pilot project are to: 
 18.33     (1) document instances when land use regulations and 
 18.34  policies are incompatible with local government land use 
 18.35  authority; 
 18.36     (2) document instances when such regulations and policies 
 19.1   interfere with private property rights; 
 19.2      (3) identify and promote a means of resolving such 
 19.3   differences; and 
 19.4      (4) provide a national model for land use management 
 19.5   through intergovernmental cooperation. 
 19.6      (e) The board must report to the legislature by January 15, 
 19.7   2004, on the status of the project.  The pilot project ends on 
 19.8   June 30, 2004. 
 19.9      <b>[EFFECTIVE DATE.]</b> Section 29 is effective the day following 
 19.10  final enactment. 
 19.11     Sec. 30.  [SEASONAL AGRICULTURAL OPERATIONS; MANUFACTURED 
 19.12  HOMES PARK EXCLUSION.] 
 19.13     Notwithstanding Minnesota Statutes, section 327.14, 
 19.14  subdivision 3, the term "manufactured home park" shall not be 
 19.15  construed to include up to four manufactured homes maintained by 
 19.16  an individual or a company on premises associated with a 
 19.17  seasonal agricultural operation and used exclusively to house 
 19.18  labor or other personnel occupied in such operation if these 
 19.19  manufactured homes meet the standards established in Minnesota 
 19.20  Rules, part 4715.0310.  This section is effective the day 
 19.21  following final enactment and expires July 1, 2004. 
 19.22     Sec. 31.  [EFFECTIVE DATE.] 
 19.23     Section 28 is effective the day following final enactment.