1.1                          A bill for an act 
  1.2             relating to agriculture; establishing a livestock 
  1.3             development program; clarifying certain requirements 
  1.4             for agricultural contracts; changing certain powers 
  1.5             relating to grain; modifying certain pesticide 
  1.6             provisions; providing for interstate cooperation for 
  1.7             seed potato certification; providing for uniformity of 
  1.8             certain Minnesota food rules with federal standards; 
  1.9             changing eligibility criteria for certain loan 
  1.10            programs; clarifying a term; providing a temporary 
  1.11            waiver of a rule; amending Minnesota Statutes 2000, 
  1.12            sections 17.101, by adding a subdivision; 17.90, 
  1.13            subdivision 1a, by adding a subdivision; 17B.03, 
  1.14            subdivision 1; 18B.315, subdivision 3; 21.111, by 
  1.15            adding a subdivision; 31.101, as amended; 31.102, 
  1.16            subdivision 1; 31.103, subdivision 1; 31.104; 41B.03, 
  1.17            subdivisions 1, 3; 223.16, subdivision 5; Minnesota 
  1.18            Statutes 2001 Supplement, sections 17.9442; 18B.36, 
  1.19            subdivision 1; 41B.046, subdivision 2; proposing 
  1.20            coding for new law in Minnesota Statutes, chapter 18D. 
  1.21  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.22     Section 1.  Minnesota Statutes 2000, section 17.101, is 
  1.23  amended by adding a subdivision to read: 
  1.24     Subd. 6.  [LIVESTOCK DEVELOPMENT.] The commissioner shall 
  1.25  establish a process, including criteria and standards, to 
  1.26  recognize and assist efforts by counties to maintain or expand 
  1.27  their livestock sector. 
  1.28     A county that meets the criteria may apply to the 
  1.29  commissioner to be designated a "livestock friendly" county. 
  1.30     Sec. 2.  Minnesota Statutes 2000, section 17.90, 
  1.31  subdivision 1a, is amended to read: 
  1.32     Subd. 1a.  [AGRICULTURAL CONTRACT.] "Agricultural contract" 
  1.33  means any written contract between a contractor and a producer, 
  2.1   but does not include a contract between a grain buyer licensed 
  2.2   under section 223.17, subdivision 1, who purchases grain from a 
  2.3   producer as a merchant or seller of grain and does not contract 
  2.4   with the producer to grow or raise the crops producing the grain.
  2.5      Sec. 3.  Minnesota Statutes 2000, section 17.90, is amended 
  2.6   by adding a subdivision to read: 
  2.7      Subd. 3b.  [GRAIN.] "Grain" has the meaning given in 
  2.8   section 223.16, subdivision 4. 
  2.9      Sec. 4.  Minnesota Statutes 2001 Supplement, section 
  2.10  17.9442, is amended to read: 
  2.11     17.9442 [APPLICABILITY OF CONTRACT REQUIREMENTS.] 
  2.12     The requirements for the written disclosure of material 
  2.13  risks under section 17.91, subdivision 2; the three-day review 
  2.14  period under section 17.941; the cover sheet requirement under 
  2.15  section 17.942; and the contract readability requirements under 
  2.16  section 17.943, subdivision 1, do not apply to contracts which 
  2.17  provide for: 
  2.18     (1) the sale and purchase of a fixed amount of a commodity 
  2.19  for delivery at a set price; 
  2.20     (2) price-later cash sale and forward delivery grain 
  2.21  contracts for grain meeting certain specifications and does not 
  2.22  prescribe the time, manner, and nature of planting, cultivating, 
  2.23  and harvesting the crop producing the grain, including fixed 
  2.24  price forward contracts, minimum price contracts, mini-max 
  2.25  contracts, basis contracts, hedge-to-arrive contracts, and 
  2.26  delayed price contracts; 
  2.27     (3) contracts agreed to between a processor and an 
  2.28  accredited bargaining organization under sections 17.691 to 
  2.29  17.702; 
  2.30     (4) future futures contracts which involve the sale or 
  2.31  purchase of a standardized quantity of a commodity for future 
  2.32  delivery on a regulated commodity exchange; 
  2.33     (5) agricultural marketing contracts between a capital 
  2.34  stock cooperative and its members under section 308A.205; or 
  2.35     (6) occasional sales between persons who produce or cause 
  2.36  to be produced food, feed, or fiber in a quantity beyond their 
  3.1   own family use. 
  3.2      Sec. 5.  Minnesota Statutes 2000, section 17B.03, 
  3.3   subdivision 1, is amended to read: 
  3.4      Subdivision 1.  [COMMISSIONER'S POWERS.] The commissioner 
  3.5   of agriculture shall exercise general supervision over the 
  3.6   inspection, grading, weighing, sampling, and analysis of 
  3.7   grain within the state of Minnesota subject to the provisions of 
  3.8   the United States Grain Standards Act of 1976 and the rules 
  3.9   promulgated thereunder by the United States Department of 
  3.10  Agriculture.  This activity may take place within or outside the 
  3.11  state of Minnesota. 
  3.12     Sec. 6.  Minnesota Statutes 2000, section 18B.315, 
  3.13  subdivision 3, is amended to read: 
  3.14     Subd. 3.  [APPLICATION.] (a) A person must apply to the 
  3.15  commissioner for an aquatic pest control license on forms and in 
  3.16  a manner required by the commissioner.  The commissioner shall 
  3.17  require the applicant to pass a written, closed-book, monitored 
  3.18  examination or oral examination, or both, and may also require a 
  3.19  practical demonstration regarding aquatic pest control.  The 
  3.20  commissioner shall establish the examination procedure, 
  3.21  including the phases and contents of the examination. 
  3.22     (b) The commissioner may license a person as a master under 
  3.23  an aquatic pest control license if the person has the necessary 
  3.24  qualifications through knowledge and experience to properly 
  3.25  plan, determine, and supervise the selection and application of 
  3.26  pesticides in aquatic pest control.  To demonstrate the 
  3.27  qualifications and become licensed as a master under the aquatic 
  3.28  pest control license, a person must: 
  3.29     (1) pass a closed-book test administered by the 
  3.30  commissioner; 
  3.31     (2) have direct experience as a licensed journeyman under 
  3.32  an aquatic pest control license or as a licensed pesticide 
  3.33  applicator for at least two years by this state or a state with 
  3.34  equivalent certification requirements, or have at least 1,600 
  3.35  hours of qualifying experience in the previous four years as 
  3.36  determined by the commissioner; and 
  4.1      (3) show practical knowledge and field experience under 
  4.2   clause (2) in the actual selection and application of pesticides 
  4.3   under varying conditions. 
  4.4      (c) The commissioner may license a person as a journeyman 
  4.5   under an aquatic pest control license if the person: 
  4.6      (1) has the necessary qualifications in the practical 
  4.7   selection and application of pesticides; 
  4.8      (2) has passed a closed-book examination given by the 
  4.9   commissioner; and 
  4.10     (3) is engaged as an employee of or is working under the 
  4.11  direction of a person licensed as a master under an aquatic pest 
  4.12  control license. 
  4.13     Sec. 7.  Minnesota Statutes 2001 Supplement, section 
  4.14  18B.36, subdivision 1, is amended to read: 
  4.15     Subdivision 1.  [REQUIREMENT.] (a) Except for a licensed 
  4.16  commercial or noncommercial applicator, only a certified private 
  4.17  applicator may use a restricted use pesticide to produce an 
  4.18  agricultural commodity: 
  4.19     (1) as a traditional exchange of services without financial 
  4.20  compensation; 
  4.21     (2) on a site owned, rented, or managed by the person or 
  4.22  the person's employees; or 
  4.23     (3) when the private applicator is one of two or fewer 
  4.24  specified individuals employed as agricultural employment as 
  4.25  defined by section 268.035, subdivision 2, employees and the 
  4.26  owner or operator is a certified private applicator or is 
  4.27  licensed as a noncommercial applicator. 
  4.28     (b) A private applicator may not purchase a restricted use 
  4.29  pesticide without presenting a certified private applicator card 
  4.30  or the card number. 
  4.31     Sec. 8.  [18D.302] [FALSE STATEMENT OR RECORD.] 
  4.32     A person must not make or offer a false statement, record, 
  4.33  or other information as part of: 
  4.34     (1) an application for registration, license, 
  4.35  certification, permit, or land application of contaminated soil 
  4.36  or other media under this chapter or chapter 18B, 18C, or 18F or 
  5.1   rules adopted under one of those chapters; 
  5.2      (2) records or reports required under this chapter or 
  5.3   chapter 18B, 18C, 18E, or 18F or rules adopted under one of 
  5.4   those chapters; or 
  5.5      (3) an investigation of a violation of this chapter or 
  5.6   chapter 18B, 18C, 18E, or 18F or rules adopted under one of 
  5.7   those chapters. 
  5.8      Sec. 9.  Minnesota Statutes 2000, section 21.111, is 
  5.9   amended by adding a subdivision to read: 
  5.10     Subd. 3a.  [INTERSTATE COOPERATION.] In order to best use 
  5.11  state resources, the commissioner may enter into agreements with 
  5.12  other seed potato certification entities to carry out the 
  5.13  purposes of sections 21.111 to 21.122.  Any agreement may 
  5.14  provide for field inspections, shipping point inspections, 
  5.15  winter tests, and other certification functions to be carried 
  5.16  out by personnel employed by either entity according to methods 
  5.17  determined by the certification entities of the respective 
  5.18  areas.  The commissioner may extend seed potato certification 
  5.19  services to states where growers wish to grow certified seed 
  5.20  potatoes and the state does not have a seed potato certification 
  5.21  program.  Any agreement must be reported to the chairs of the 
  5.22  legislative committees responsible for the budget or policy of 
  5.23  the seed potato inspection program and to the commissioner of 
  5.24  finance. 
  5.25     Sec. 10.  Minnesota Statutes 2000, section 31.101, as 
  5.26  amended by Laws 2001, First Special Session chapter 2, section 
  5.27  53, is amended to read: 
  5.28     31.101 [RULES; HEARINGS; UNIFORMITY WITH FEDERAL LAW.] 
  5.29     Subdivision 1.  [AUTHORITY.] The commissioner may 
  5.30  promulgate and amend rules for the efficient administration and 
  5.31  enforcement of the Minnesota Food Law.  The rules when 
  5.32  applicable must conform, insofar as practicable and consistent 
  5.33  with state law, with those promulgated under the federal law.  
  5.34  This rulemaking authority is in addition to that in sections 
  5.35  31.10, 31.11, and 31.12.  Rules adopted under this section may 
  5.36  be amended by the commissioner under chapter 14, subject to the 
  6.1   limitation in subdivision 7.  
  6.2      Subd. 2.  [HEARINGS.] Hearings authorized or required by 
  6.3   law must be conducted by the commissioner or an officer, agent, 
  6.4   or employee the commissioner designates for the purpose.  
  6.5      Subd. 3.  [PESTICIDE CHEMICAL RULES.] Federal pesticide 
  6.6   chemical regulations in effect on April 1, 2000 2001, adopted 
  6.7   under authority of the Federal Insecticide, Fungicide and 
  6.8   Rodenticide Act, as provided by United States Code, title 7, 
  6.9   chapter 6, are the pesticide chemical rules in this state.  
  6.10     Subd. 4.  [FOOD ADDITIVE RULES.] Federal food additive 
  6.11  regulations in effect on April 1, 2000 2001, as provided by Code 
  6.12  of Federal Regulations, title 21, parts 170 to 199, are the food 
  6.13  additive rules in this state.  
  6.14     Subd. 5.  [COLOR ADDITIVE RULES.] Federal color additive 
  6.15  regulations in effect on April 1, 2000 2001, as provided by Code 
  6.16  of Federal Regulations, title 21, parts 70 to 82, are the color 
  6.17  additive rules in this state.  
  6.18     Subd. 6.  [SPECIAL DIETARY USE RULES.] Federal special 
  6.19  dietary use regulations in effect on April 1, 2000 2001, as 
  6.20  provided by Code of Federal Regulations, title 21, parts 104 and 
  6.21  105, are the special dietary use rules in this state.  
  6.22     Subd. 7.  [FAIR PACKAGING AND LABELING RULES.] Federal 
  6.23  regulations in effect on April 1, 2000 2001, adopted under the 
  6.24  Fair Packaging and Labeling Act, as provided by United States 
  6.25  Code, title 15, sections 1451 to 1461, are the rules in this 
  6.26  state.  The commissioner may not adopt amendments to these rules 
  6.27  or adopt other rules which are contrary to the labeling 
  6.28  requirements for the net quantity of contents required pursuant 
  6.29  to section 4 of the Fair Packaging and Labeling Act and the 
  6.30  regulations adopted under that act.  
  6.31     Subd. 8.  [FOOD AND DRUGS RULES.] Applicable federal 
  6.32  regulations including recodification contained in Code of 
  6.33  Federal Regulations, title 21, parts 0-1299, Food and Drugs, in 
  6.34  effect April 1, 2000 2001, and not otherwise adopted herein, 
  6.35  also are adopted as food rules of this state.  
  6.36     Subd. 9.  [FISHERY PRODUCTS RULES.] Federal regulations in 
  7.1   effect on April 1, 2000 2001, as provided by Code of Federal 
  7.2   Regulations, title 50, parts 260 to 267, are incorporated as 
  7.3   part of the fishery products rules in this state for state 
  7.4   inspections performed under a cooperative agreement with the 
  7.5   United States Department of Commerce, National Marine Fisheries 
  7.6   Service.  
  7.7      Subd. 10.  [MEAT AND POULTRY RULES.] Federal regulations in 
  7.8   effect on April 1, 2000 2001, as provided by Code of Federal 
  7.9   Regulations, title 9, part 301, et seq., are incorporated as 
  7.10  part of the meat and poultry rules in this state. 
  7.11     Subd. 11.  [STANDARDS FOR FRESH FRUITS, VEGETABLES, AND 
  7.12  OTHER PRODUCTS.] Federal regulations in effect on April 1, 
  7.13  2000 2001, as provided by Code of Federal Regulations, title 7, 
  7.14  parts 51 and 52, are incorporated as part of the rules in this 
  7.15  state.  
  7.16     Subd. 12.  [DAIRY GRADE RULES; MANUFACTURING PLANT 
  7.17  STANDARDS.] Federal grading and inspection standards for 
  7.18  manufacturing dairy plants and products and amendments thereto 
  7.19  in effect on January April 1, 2001, as provided by Code of 
  7.20  Federal Regulations, title 7, part 58, subparts B-W, are adopted 
  7.21  as the dairy grade rules and manufacturing plant standards in 
  7.22  this state. 
  7.23     Sec. 11.  Minnesota Statutes 2000, section 31.102, 
  7.24  subdivision 1, is amended to read: 
  7.25     Subdivision 1.  [IDENTITY, QUANTITY, AND FILL OF CONTAINER 
  7.26  RULES.] Federal definitions and standards of identity, quality, 
  7.27  and fill of container in effect on April 1, 2000 2001, adopted 
  7.28  under authority of the federal act, are the definitions and 
  7.29  standards of identity, quality, and fill of container in this 
  7.30  state.  The rules may be amended by the commissioner under 
  7.31  chapter 14.  
  7.32     Sec. 12.  Minnesota Statutes 2000, section 31.103, 
  7.33  subdivision 1, is amended to read: 
  7.34     Subdivision 1.  [CONSUMER COMMODITIES LABELING RULES.] All 
  7.35  labels of consumer commodities must conform with the 
  7.36  requirements for the declaration of net quantity of contents of 
  8.1   section 4 of the Fair Packaging and Labeling Act (United States 
  8.2   Code, title 15, section 1451 et seq.) and federal regulations in 
  8.3   effect on April 1, 2000 2001, adopted under authority of that 
  8.4   act, except to the extent that the commissioner amends the rules 
  8.5   under chapter 14.  Consumer commodities exempted from the 
  8.6   requirements of section 4 of the Fair Packaging and Labeling Act 
  8.7   are also exempt from this subdivision.  
  8.8      Sec. 13.  Minnesota Statutes 2000, section 31.104, is 
  8.9   amended to read: 
  8.10     31.104 [FOOD LABELING EXEMPTION RULES.] 
  8.11     The commissioner shall promulgate rules exempting from any 
  8.12  labeling requirement food which is, in accordance with the 
  8.13  practice of the trade, to be processed, labeled, or repacked in 
  8.14  substantial quantities at establishments other than those where 
  8.15  originally processed or packed, on condition that such food is 
  8.16  not adulterated or misbranded upon removal from such processing, 
  8.17  labeling, or repacking establishment.  
  8.18     Federal regulations in effect on April 1, 2000 2001, 
  8.19  adopted under authority of the federal act relating to such 
  8.20  exemptions are effective in this state unless the commissioner 
  8.21  amends them.  The commissioner also may amend existing rules 
  8.22  concerning exemptions under chapter 14. 
  8.23     Sec. 14.  Minnesota Statutes 2000, section 41B.03, 
  8.24  subdivision 1, is amended to read: 
  8.25     Subdivision 1.  [ELIGIBILITY GENERALLY.] To be eligible for 
  8.26  a program in sections 41B.01 to 41B.23: 
  8.27     (1) a borrower must be a resident of Minnesota or a 
  8.28  domestic family farm corporation or family farm partnership, as 
  8.29  defined in section 500.24, subdivision 2; and 
  8.30     (2) the borrower or one of the borrowers must be the 
  8.31  principal operator of the farm or, for a prospective homestead 
  8.32  redemption borrower, must have at one time been the principal 
  8.33  operator of a farm. 
  8.34     Sec. 15.  Minnesota Statutes 2000, section 41B.03, 
  8.35  subdivision 3, is amended to read: 
  8.36     Subd. 3.  [ELIGIBILITY FOR BEGINNING FARMER LOANS.] (a) In 
  9.1   addition to the requirements under subdivision 1, a prospective 
  9.2   borrower for a beginning farm loan in which the authority holds 
  9.3   an interest, must:  
  9.4      (1) have sufficient education, training, or experience in 
  9.5   the type of farming for which the loan is desired; 
  9.6      (2) have a total net worth, including assets and 
  9.7   liabilities of the borrower's spouse and dependents, of less 
  9.8   than $200,000 in 1991 and an amount in subsequent years which is 
  9.9   adjusted for inflation by multiplying $200,000 by the cumulative 
  9.10  inflation rate as determined by the United States All-Items 
  9.11  Consumer Price Index; 
  9.12     (3) demonstrate a need for the loan; 
  9.13     (4) demonstrate an ability to repay the loan; 
  9.14     (5) certify that the agricultural land to be purchased will 
  9.15  be used by the borrower for agricultural purposes; 
  9.16     (6) certify that farming will be the principal occupation 
  9.17  of the borrower; 
  9.18     (7) agree to participate in a farm management program 
  9.19  approved by the commissioner of agriculture for at least the 
  9.20  first five three years of the loan, if an approved program is 
  9.21  available within 45 miles from the borrower's residence.  The 
  9.22  commissioner may waive this requirement for any of the programs 
  9.23  administered by the authority if the participant requests a 
  9.24  waiver and has either a four-year degree in an agricultural 
  9.25  program or certification as an adult farm management instructor; 
  9.26  and 
  9.27     (8) agree to file an approved soil and water conservation 
  9.28  plan with the soil conservation service office in the county 
  9.29  where the land is located.  
  9.30     (b) If a borrower fails to participate under paragraph (a), 
  9.31  clause (7), the borrower is subject to penalty as determined by 
  9.32  the authority. 
  9.33     Sec. 16.  Minnesota Statutes 2001 Supplement, section 
  9.34  41B.046, subdivision 2, is amended to read: 
  9.35     Subd. 2.  [ESTABLISHMENT.] The authority shall establish 
  9.36  and implement a value-added agricultural product loan program to 
 10.1   help farmers finance the purchase of stock in a cooperative, 
 10.2   limited liability company, or limited liability partnership that 
 10.3   is proposing to build or purchase and operate an agricultural 
 10.4   product processing facility or already owns and operates an 
 10.5   agricultural product processing facility. 
 10.6      Sec. 17.  Minnesota Statutes 2000, section 223.16, 
 10.7   subdivision 5, is amended to read: 
 10.8      Subd. 5.  [GRAIN BUYER.] "Grain buyer" means a person who 
 10.9   purchases grain for the purpose of reselling the grain or 
 10.10  products made from the grain, with the exception of a person who 
 10.11  purchases seed grain for crop production or who purchases grain 
 10.12  as feed for the person's own livestock. 
 10.13     Sec. 18.  [TEMPORARY WAIVER OF RULE.] 
 10.14     The application of Minnesota Rules, part 1720.0620, is 
 10.15  temporarily waived from June 1, 2002, to June 30, 2003, for 
 10.16  products used exclusively for poultry. 
 10.17     Sec. 19.  [EFFECTIVE DATE.] 
 10.18     Section 18 is effective the day following final enactment.