1.1                          A bill for an act 
  1.2             relating to agriculture; changing certain duties, loan 
  1.3             requirements, procedures, inspection requirements, and 
  1.4             fees; regulating certain veterinary treatments; 
  1.5             modifying provisions governing county and regional 
  1.6             fairs; eliminating an ownership disclosure 
  1.7             requirement; changing certain grain buyers' bond and 
  1.8             financial reporting requirements; changing certain 
  1.9             limits; establishing loan and grant programs; 
  1.10            providing for faculty veterinary licensure; limiting 
  1.11            certain nuisance claims; prohibiting intentional 
  1.12            introduction of disease to domestic animals; 
  1.13            prohibiting certain trespass on agricultural land; 
  1.14            providing a civil remedy; providing criminal 
  1.15            penalties; transferring certain funds; appropriating 
  1.16            money; changing certain appropriations; amending 
  1.17            Minnesota Statutes 2002, sections 16C.135, by adding 
  1.18            subdivisions; 17.115, subdivisions 2, 3, 4; 17B.03, 
  1.19            subdivision 1; 17B.15, subdivision 1; 27.10; 35.243; 
  1.20            38.04; 38.12; 38.14; 38.15; 38.16; 41B.03, subdivision 
  1.21            3; 41B.036; 41B.039, subdivision 2; 41B.04, 
  1.22            subdivision 8; 41B.042, subdivision 4; 41B.043, 
  1.23            subdivision 1b, by adding a subdivision; 41B.045, 
  1.24            subdivision 2; 41B.046, subdivision 5; 41B.049, 
  1.25            subdivision 2; 41C.02, subdivision 12; 156.12, 
  1.26            subdivision 2, by adding a subdivision; 223.17, 
  1.27            subdivisions 3, 6; 231.16; 232.22, subdivision 3; 
  1.28            236.02, subdivision 4; 561.19, subdivision 2; 609.605, 
  1.29            subdivision 1, by adding a subdivision; Minnesota 
  1.30            Statutes 2003 Supplement, sections 18G.10, 
  1.31            subdivisions 5, 7; 38.02, subdivisions 1, 3; 41A.09, 
  1.32            subdivision 3a; 223.17, subdivision 4; proposing 
  1.33            coding for new law in Minnesota Statutes, chapters 
  1.34            41B; 116J; 609; repealing Minnesota Statutes 2002, 
  1.35            sections 18C.433; 38.02, subdivision 2; 38.13; 
  1.36            41B.046, subdivision 3. 
  1.37  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.38  Section 1.  [AGRICULTURE APPROPRIATIONS AND REDUCTIONS.] 
  1.39     The dollar amounts in the columns under "APPROPRIATIONS" 
  1.40  are added to or, if shown in parentheses, are subtracted from 
  1.41  the appropriations in Laws 2003, chapter 128, article 3, or 
  2.1   other law, to the specified agencies.  The appropriations are 
  2.2   from the general fund or other named fund and are available for 
  2.3   the fiscal years indicated for each purpose.  The figures "2004" 
  2.4   and "2005" means that the addition to or subtraction from the 
  2.5   appropriations listed under the figure are for the fiscal year 
  2.6   ending June 30, 2004, or June 30, 2005, respectively.  The term 
  2.7   "first year" means the year ending June 30, 2004, and the term 
  2.8   "second year" means the year ending June 30, 2005. 
  2.9                           SUMMARY BY FUND 
  2.10  APPROPRIATIONS            2004          2005           TOTAL
  2.11  General            $     -0-      $    (390,000) $     (390,000)
  2.12                                             APPROPRIATIONS 
  2.13                                         Available for the Year 
  2.14                                             Ending June 30 
  2.15                                            2004         2005 
  2.16  Sec. 2.  AGRICULTURE                                           
  2.17  Subdivision 1.  Total       
  2.18  Appropriations                            -0-          (306,000)
  2.19  The Department of Agriculture's general 
  2.20  fund appropriation is reduced by 
  2.21  $497,000 in fiscal year 2005.  This 
  2.22  reduction, for the biennium ending June 
  2.23  30, 2005, must be from savings achieved 
  2.24  without a reduction in services 
  2.25  provided. 
  2.26  Subd. 2.  Protection Services          -0-              191,000 
  2.27  $191,000 is added in fiscal year 2005 
  2.28  for the invasive species program. 
  2.29  Sec. 3.  BOARD OF ANIMAL  
  2.30  HEALTH                                 -0-              (84,000)
  2.31     Sec. 4.  Minnesota Statutes 2002, section 16C.135, is 
  2.32  amended by adding a subdivision to read: 
  2.33     Subd. 4.  [COMMISSIONER DUTIES; PERIODIC NOTICE TO 
  2.34  AGENCIES; REPORT TO LEGISLATURE.] (a) Not later than September 
  2.35  1, 2004, and at intervals not exceeding six months thereafter, 
  2.36  the commissioner shall provide a written communication to the 
  2.37  head of each agency for which the commissioner acquires or has 
  2.38  oversight authority for the acquisition of passenger 
  2.39  automobiles, vans, or pickup trucks used by the agency.  The 
  2.40  communication must remind the agency head of the statutory 
  2.41  requirement in subdivision 2 that state-owned or leased vehicles 
  2.42  capable of being operated on E85 fuel (manufactured as 
  3.1   flexible-fuel vehicles) should be operated on E85 fuel whenever 
  3.2   and wherever the fuel is reasonably available.  The 
  3.3   communication must also include a form for use by the head of 
  3.4   the agency to report to the commissioner on total fuel purchased 
  3.5   for use in the flexible-fuel vehicles operated by the agency and 
  3.6   the extent to which fuel purchases are E85 fuel. 
  3.7      (b) Not later than March 1 of each year the commissioner 
  3.8   shall report to appropriate committees of the senate and the 
  3.9   house of representatives on the extent to which flexible-fuel 
  3.10  vehicles owned or leased by the state are operated on E85 fuel. 
  3.11     Sec. 5.  Minnesota Statutes 2002, section 16C.135, is 
  3.12  amended by adding a subdivision to read: 
  3.13     Subd. 5.  [AGENCY REPORTS.] Each agency that operates one 
  3.14  or more highway vehicles that are flexible-fuel vehicles shall 
  3.15  report not later than April 1 and October 1 to the commissioner, 
  3.16  on the form provided by the commissioner or in a comparable 
  3.17  manner, on the extent to which the agency has complied with the 
  3.18  requirement to use E85 fuel in flexible-fuel vehicles operated 
  3.19  by the agency. 
  3.20     Sec. 6.  Minnesota Statutes 2002, section 17.115, 
  3.21  subdivision 2, is amended to read: 
  3.22     Subd. 2.  [LOAN CRITERIA.] (a) The shared savings loan 
  3.23  program must provide loans for purchase of new or used machinery 
  3.24  and installation of equipment for projects that make 
  3.25  environmental improvements or enhance farm profitability.  
  3.26  Eligible loan uses do not include seed, fertilizer, or fuel. 
  3.27     (b) Loans may not exceed $25,000 per individual applying 
  3.28  for a loan and may not exceed $100,000 for loans to four or more 
  3.29  individuals on joint projects.  The loan repayment period may be 
  3.30  up to seven years as determined by project cost and energy 
  3.31  savings.  The interest rate on the loans is must not exceed six 
  3.32  percent.  
  3.33     (c) Loans may only be made to residents of this state 
  3.34  engaged in farming.  
  3.35     Sec. 7.  Minnesota Statutes 2002, section 17.115, 
  3.36  subdivision 3, is amended to read: 
  4.1      Subd. 3.  [AWARDING OF LOANS.] (a) Applications for loans 
  4.2   must be made to the commissioner on forms prescribed by the 
  4.3   commissioner. 
  4.4      (b) The applications must be reviewed, ranked, and 
  4.5   recommended by a loan review panel appointed by the 
  4.6   commissioner.  The loan review panel shall consist of two 
  4.7   lenders with agricultural experience, two resident farmers of 
  4.8   the state using sustainable agriculture methods, two resident 
  4.9   farmers of the state using organic agriculture methods, a farm 
  4.10  management specialist, a representative from a postsecondary 
  4.11  education institution, and a chair from the department.  
  4.12     (c) The loan review panel shall rank applications according 
  4.13  to the following criteria: 
  4.14     (1) realize savings to the cost of agricultural production; 
  4.15     (2) reduce or make more efficient use of energy or inputs; 
  4.16     (3) increase overall farm profitability; and 
  4.17     (4) result in environmental benefits.  
  4.18     (d) A loan application must show that the loan can be 
  4.19  repaid by the applicant.  
  4.20     (e) The commissioner must consider the recommendations of 
  4.21  the loan review panel and may make loans for eligible projects.  
  4.22     (f) The commissioner may provide loans to resident farmers 
  4.23  beginning or expanding organic farming operations. 
  4.24     Sec. 8.  Minnesota Statutes 2002, section 17.115, 
  4.25  subdivision 4, is amended to read: 
  4.26     Subd. 4.  [ADMINISTRATION; INFORMATION DISSEMINATION.] The 
  4.27  amount in the revolving loan account is appropriated to The 
  4.28  commissioner shall use designated funds in the revolving loan 
  4.29  account in section 41B.06 to make loans under this section and 
  4.30  administer the loan program.  The interest on the money in the 
  4.31  revolving loan account and the interest on loans repaid to the 
  4.32  state may be spent by the commissioner for administrative 
  4.33  expenses.  The commissioner shall collect and disseminate 
  4.34  information relating to projects for which loans are given under 
  4.35  this section. 
  4.36     Sec. 9.  Minnesota Statutes 2002, section 17B.03, 
  5.1   subdivision 1, is amended to read: 
  5.2      Subdivision 1.  [COMMISSIONER'S POWERS.] The commissioner 
  5.3   of agriculture shall exercise general supervision over the 
  5.4   inspection, grading, weighing, sampling, and analysis of grain, 
  5.5   and scale testing subject to the provisions of the United States 
  5.6   Grain Standards Act of 1976 and the rules promulgated thereunder 
  5.7   by the United States Department of Agriculture.  This activity 
  5.8   may take place within or outside the state of Minnesota.  Scale 
  5.9   testing may be performed at export locations or, on request from 
  5.10  and with the consent of the delegated authority, at domestic 
  5.11  locations. 
  5.12     Sec. 10.  Minnesota Statutes 2002, section 17B.15, 
  5.13  subdivision 1, is amended to read: 
  5.14     Subdivision 1.  [ADMINISTRATION; APPROPRIATION.] The fees 
  5.15  for inspection and weighing shall be fixed by the commissioner 
  5.16  and be a lien upon the grain.  The commissioner shall set fees 
  5.17  for all inspection and weighing in an amount adequate to pay the 
  5.18  expenses of carrying out and enforcing the purposes of sections 
  5.19  17B.01 to 17B.22, including the portion of general support costs 
  5.20  and statewide indirect costs of the agency attributable to that 
  5.21  function, with a reserve sufficient for up to six months.  The 
  5.22  commissioner shall review the fee schedule twice each year.  Fee 
  5.23  adjustments are not subject to chapter 14.  Payment shall be 
  5.24  required for services rendered. 
  5.25     Fees for the testing of scales and weighing equipment must 
  5.26  be uniform with those charged by the Division of Weights and 
  5.27  Measures of the Department of Public Service. 
  5.28     All fees collected and all fines and penalties for 
  5.29  violation of any provision of this chapter shall be deposited in 
  5.30  the grain inspection and weighing account, which is created in 
  5.31  the agricultural fund for carrying out the purpose of sections 
  5.32  17B.01 to 17B.22.  The money in the account, including interest 
  5.33  earned on the account, is annually appropriated to the 
  5.34  commissioner of agriculture to administer the provisions of 
  5.35  sections 17B.01 to 17B.22.  When money from any other account is 
  5.36  used to administer sections 17B.01 to 17B.22, the commissioner 
  6.1   shall notify the chairs of the Agriculture, Environment and 
  6.2   Natural Resources Finance, and Ways and Means Committees of the 
  6.3   house of representatives; the Agriculture and Rural Development 
  6.4   and Finance Committees of the senate; and the Finance Division 
  6.5   of the Environment and Natural Resources Committee of the senate.
  6.6      Sec. 11.  Minnesota Statutes 2003 Supplement, section 
  6.7   18G.10, subdivision 5, is amended to read: 
  6.8      Subd. 5.  [CERTIFICATE FEES.] (a) The commissioner shall 
  6.9   assess the fees in paragraphs (b) to (f) for the inspection, 
  6.10  service, and work performed in carrying out the issuance of a 
  6.11  phytosanitary certificate or export certificate.  The inspection 
  6.12  fee must be based on mileage and inspection time. 
  6.13     (b) Mileage charge:  current United States Internal Revenue 
  6.14  Service mileage rate. 
  6.15     (c) Inspection time:  $50 per hour minimum or fee necessary 
  6.16  to cover department costs.  Inspection time includes the driving 
  6.17  time to and from the location in addition to the time spent 
  6.18  conducting the inspection. 
  6.19     (d) A fee must be charged for any certificate issued that 
  6.20  requires laboratory analysis before issuance.  The fee must be 
  6.21  deposited into the laboratory account as authorized in section 
  6.22  17.85. If laboratory analysis or other technical analysis is 
  6.23  required to issue a certificate, the commissioner must set and 
  6.24  collect the fee to recover this additional cost. 
  6.25     (e) Certificate fee for product value greater than $250:  
  6.26  $75 for each phytosanitary or export certificate issued for any 
  6.27  single shipment valued at more than $250 in addition to any 
  6.28  mileage or inspection time charges that are assessed. 
  6.29     (f) Certificate fee for product value less than $250:  $25 
  6.30  for each phytosanitary or export certificate issued for any 
  6.31  single shipment valued at less than $250 in addition to any 
  6.32  mileage or inspection time charges that are assessed. 
  6.33     (g) For services provided under subdivision 7 for goods and 
  6.34  services provided for the direct and primary use of a private 
  6.35  individual, business, or other entity, the commissioner must set 
  6.36  and collect the fees to recover the cost of the services 
  7.1   provided. 
  7.2      Sec. 12.  Minnesota Statutes 2003 Supplement, section 
  7.3   18G.10, subdivision 7, is amended to read: 
  7.4      Subd. 7.  [PLANT PROTECTION INSPECTIONS, SUPPLEMENTAL, 
  7.5   ADDITIONAL, OR OTHER CERTIFICATES, AND PERMITS, AND FEES.] (a) 
  7.6   The commissioner may provide inspection, sampling, or 
  7.7   certification services to ensure that Minnesota plant products 
  7.8   or commodities meet import requirements of other states or 
  7.9   countries. 
  7.10     (b) The state plant regulatory official commissioner may 
  7.11  issue permits and certificates verifying that various Minnesota 
  7.12  agricultural products or commodities meet 
  7.13  specified phytosanitary plant health requirements, treatment 
  7.14  requirements, or pest absence assurances based on determinations 
  7.15  by the commissioner.  The commissioner may collect fees 
  7.16  sufficient to recover costs for these permits or certificates.  
  7.17  The fees must be deposited in the nursery and phytosanitary 
  7.18  account. 
  7.19     Sec. 13.  Minnesota Statutes 2002, section 27.10, is 
  7.20  amended to read: 
  7.21     27.10 [PRODUCE EXAMINED, WHEN.] 
  7.22     When produce is shipped to or received by a dealer at 
  7.23  wholesale for handling, purchase, or sale in this state or 
  7.24  another state designated in a cooperative agreement between the 
  7.25  commissioner and the United States Department of Agriculture, at 
  7.26  any market point therein giving inspection service, as provided 
  7.27  for in section 27.07, and the dealer at wholesale finds the same 
  7.28  to be in a spoiled, damaged, unmarketable, or unsatisfactory 
  7.29  condition, unless both parties shall waive inspection before 
  7.30  sale or other disposition thereof, the dealer shall cause the 
  7.31  same to be examined by an inspector assigned by the commissioner 
  7.32  for that purpose, and the inspector shall execute and deliver a 
  7.33  certificate to the applicant thereof stating the day, the time 
  7.34  and place of the inspection, and the condition of the produce 
  7.35  and mail or deliver a copy of the certificate to the shipper 
  7.36  thereof. 
  8.1      Sec. 14.  Minnesota Statutes 2002, section 35.243, is 
  8.2   amended to read: 
  8.3      35.243 [RULES FOR CONTROL OF BRUCELLOSIS IN CATTLE.] 
  8.4      The Board of Animal Health shall adopt rules to provide for 
  8.5   the control of brucellosis in cattle.  The rules may include 
  8.6   provisions for quarantine, tests, and vaccinations, and such 
  8.7   other measures as the board deems appropriate.  A prescription 
  8.8   from a licensed veterinarian is not required for the sale of 
  8.9   modified live vaccines used to prevent common diseases in beef 
  8.10  cattle, except for brucellosis, rabies, and anthrax. 
  8.11     Sec. 15.  Minnesota Statutes 2003 Supplement, section 
  8.12  38.02, subdivision 1, is amended to read: 
  8.13     Subdivision 1.  [PRO RATA DISTRIBUTION; CONDITIONS.] (a) 
  8.14  Money appropriated to aid county and district agricultural 
  8.15  societies and associations shall be distributed among all county 
  8.16  and district agricultural societies or associations in the state 
  8.17  pro rata, upon condition that each of them has complied with the 
  8.18  conditions specified in paragraph (b). 
  8.19     (b) To be eligible to participate in the distribution of 
  8.20  aid, each agricultural society or association shall have: 
  8.21     (1) held an annual fair for each of the three years last 
  8.22  past, unless prevented from doing so because of a calamity or an 
  8.23  epidemic declared by the Board of Health as defined in section 
  8.24  145A.02, subdivision 2, or the state commissioner of health, or 
  8.25  the board of animal health to exist; 
  8.26     (2) an annual membership of 25 15 or more; 
  8.27     (3) paid out to exhibitors for premiums awarded at the last 
  8.28  fair held a sum not less than the amount to be received from the 
  8.29  state; 
  8.30     (4) published and distributed, or made available on an 
  8.31  Internet Web site, not less than three weeks before the opening 
  8.32  day of the fair a premium list, listing all items or articles on 
  8.33  which premiums are offered and the amounts of such premiums and 
  8.34  shall have paid premiums pursuant to the amount shown for each 
  8.35  article or item to be exhibited; provided that premiums for 
  8.36  school exhibits may be advertised in the published premium list 
  9.1   by reference to a school premium list prepared and circulated 
  9.2   during the preceding school year; and shall have collected all 
  9.3   fees charged for entering an exhibit at the time the entry was 
  9.4   made and in accordance with schedule of entry fees to be charged 
  9.5   as published in the premium list; 
  9.6      (5) paid not more than one premium on each article or item 
  9.7   exhibited, excluding championship or sweepstake awards, and 
  9.8   excluding the payment of open class premium awards to 4H Club 
  9.9   exhibits which at this same fair had won a first prize award in 
  9.10  regular 4H Club competition; and 
  9.11     (6) submitted its records and annual report of premiums 
  9.12  paid to the commissioner of agriculture on a form provided by 
  9.13  the commissioner of agriculture, on or before the first day of 
  9.14  November of the year in which the fair was held. 
  9.15     (c) All payments authorized under the provisions of this 
  9.16  chapter shall be made only upon the presentation by the 
  9.17  commissioner of agriculture with the commissioner of finance of 
  9.18  a statement of premium allocations.  As used herein the term 
  9.19  premium shall mean the cash award paid to an exhibitor for the 
  9.20  merit of an exhibit of livestock, livestock products, grains, 
  9.21  fruits, flowers, vegetables, articles of domestic science, 
  9.22  handicrafts, hobbies, fine arts, other products of a creative 
  9.23  nature, and articles made by school pupils, or the cash award 
  9.24  paid to the merit winner of events such as 4H Club or Future 
  9.25  Farmer contest, youth group contests, school spelling contests 
  9.26  and school current events contests, the award corresponding to 
  9.27  the amount offered in the advertised premium list referred to in 
  9.28  schedule 2.  Payments of awards for horse races, horse pulls, 
  9.29  tractor pulls, demolition derby, automobile or other racing, 
  9.30  jackpot premiums, ball games, musical contests, talent contests, 
  9.31  parades, and for amusement features for which admission is 
  9.32  charged, are specifically excluded from consideration as 
  9.33  premiums within the meaning of that term as used herein.  Upon 
  9.34  receipt of the statement by the commissioner of agriculture, the 
  9.35  commissioner of finance shall draw a voucher in favor of the 
  9.36  agricultural society or association for the amount to which it 
 10.1   is entitled under the provisions of this chapter.  The amount 
 10.2   shall be computed as follows:  On the first $750 premiums paid 
 10.3   by each society or association at the last fair held, the 
 10.4   society or association shall receive 100 percent reimbursement; 
 10.5   on the second $750 premiums paid, 80 percent; on the third $750 
 10.6   premiums paid, 60 percent; and on any sum in excess of $2,250, 
 10.7   40 percent.  The commissioner of finance shall make payments not 
 10.8   later than July 15 of the year following the calendar year in 
 10.9   which the annual fair was held to those agricultural societies 
 10.10  or associations entitled to payments under the provisions of 
 10.11  this chapter. 
 10.12     (d) If the total amount of state aid to which the 
 10.13  agricultural societies and associations are entitled under the 
 10.14  provisions of this chapter exceeds the amount of the 
 10.15  appropriation therefor, the amounts to which the societies or 
 10.16  associations are entitled shall be prorated so that the total 
 10.17  payments by the state will not exceed the appropriation. 
 10.18     Sec. 16.  Minnesota Statutes 2003 Supplement, section 
 10.19  38.02, subdivision 3, is amended to read: 
 10.20     Subd. 3.  [CERTIFICATION, COMMISSIONER OF 
 10.21  AGRICULTURE ENTITLEMENT FOR PRO RATA DISTRIBUTION.] Any A county 
 10.22  or district agricultural society which has held its second 
 10.23  annual fair is entitled to share pro rata in the 
 10.24  distribution.  The commissioner of agriculture shall certify to 
 10.25  the secretary of the State Agricultural Society, within 30 days 
 10.26  after payments have been made, a list of all county or district 
 10.27  agricultural societies that have complied with this chapter, and 
 10.28  which are entitled to share in the appropriation.  All Payments 
 10.29  shall be based on reports submitted by agricultural societies 
 10.30  under subdivision 1, paragraph (b), clause (6). 
 10.31     Sec. 17.  Minnesota Statutes 2002, section 38.04, is 
 10.32  amended to read: 
 10.33     38.04 [ANNUAL MEETINGS; REPORTS.] 
 10.34     Every county agricultural society shall hold an annual 
 10.35  meeting for the election of officers and the transaction of 
 10.36  other business on or before the third Tuesday in November.  
 11.1   Service on the county agricultural society board or as an 
 11.2   officer of the board is not a public office.  Elected officials 
 11.3   of the state or its political subdivisions may serve on the 
 11.4   board or be elected as officers. 
 11.5      At the annual meeting, the society's secretary an officer 
 11.6   of the society shall make a report of its proceedings for the 
 11.7   preceding year; this report shall contain a statement of all 
 11.8   transactions at its fairs, the numbers of entries, the amount 
 11.9   and source of all money received, and and a financial statement 
 11.10  prepared in accordance with generally accepted accounting 
 11.11  principles.  The report must also list the amount paid out for 
 11.12  premiums and for other purposes, and show in detail its entire 
 11.13  receipts and expenditures during the year.  The report must 
 11.14  contain a separate accounting of any income received from the 
 11.15  operation of horse racing on which pari-mutuel betting is 
 11.16  conducted, and of the disposition of that income.  
 11.17     The treasurer shall make a comprehensive report of the 
 11.18  funds received, paid out, and on hand, and upon whose order 
 11.19  paid.  Each secretary shall cause a certified copy of the annual 
 11.20  report to be filed with the county recorder of the county and 
 11.21  the commissioner of agriculture on or before the first day of 
 11.22  November each year.  Reports of the society are public data 
 11.23  under chapter 13 and must be made available for inspection by 
 11.24  any person. 
 11.25     Sec. 18.  Minnesota Statutes 2002, section 38.12, is 
 11.26  amended to read: 
 11.27     38.12 [APPROPRIATIONS BY CERTAIN MUNICIPALITIES.] 
 11.28     The council of any city and the board of supervisors of any 
 11.29  town having fairs of county and district agricultural societies 
 11.30  or associations, who are members of the Minnesota state 
 11.31  agricultural society, held within or in close proximity to their 
 11.32  corporate limits or in close proximity thereto, are hereby 
 11.33  authorized and empowered to may appropriate for and pay money to 
 11.34  such the agricultural society or association annually a sum not 
 11.35  exceeding $1,000.  
 11.36     Sec. 19.  Minnesota Statutes 2002, section 38.14, is 
 12.1   amended to read: 
 12.2      38.14 [IN COUNTIES OF 150,000:  APPROPRIATIONS FOR COUNTY 
 12.3   FAIRS.] 
 12.4      Subdivision 1.  [CONDITIONS, PROCEDURES, BOND.] In any 
 12.5   county in this state now or hereafter having a population of 
 12.6   150,000, the A county board may annually appropriate not to 
 12.7   exceed $3,000, except that counties having more than 300,000 and 
 12.8   less than 450,000 inhabitants may appropriate not to exceed 
 12.9   $5,000, money to assist in maintaining a county fair, which fair 
 12.10  shall be under the management and control of managed by a county 
 12.11  agricultural society.  The appropriation shall be made either to 
 12.12  the treasurer of the society or to some other suitable person,.  
 12.13  but before the money is paid, the treasurer or other person 
 12.14  shall file with the county auditor a satisfactory bond in double 
 12.15  the sum of the appropriation, conditioned upon the faithful 
 12.16  disbursing and accounting for all of the funds so appropriated.  
 12.17  The funds so appropriated shall be used solely for the purpose 
 12.18  of obtaining, preparing, and arranging exhibits and paying 
 12.19  premiums to exhibitors.  The treasurer or other person to whom 
 12.20  the appropriation is paid shall, within four months after the 
 12.21  holding of any such aided annual fair, file with the county 
 12.22  auditor a verified and detailed report showing the name and 
 12.23  address of every person to whom any of the money was paid, 
 12.24  together with the date of payment, and a full description of the 
 12.25  purposes for which the money was so paid, and shall attach 
 12.26  thereto receipts and subvouchers for each payment so made and 
 12.27  return to the county treasurer all of the unexpended portion 
 12.28  thereof.  After the report, receipts, and subvouchers have been 
 12.29  audited by the county board and found to be correct, it may, by 
 12.30  resolution, release the treasurer or other person and the 
 12.31  sureties from all further liabilities under bond. 
 12.32     Subd. 2.  [EXCEPT RAMSEY COUNTY.] This section and section 
 12.33  38.15 do not apply to Ramsey County. 
 12.34     Sec. 20.  Minnesota Statutes 2002, section 38.15, is 
 12.35  amended to read: 
 12.36     38.15 [SITES AND BUILDINGS.] 
 13.1      The county board in any such county may also annually 
 13.2   appropriate such further sum as it may desire, not exceeding 
 13.3   $7,500, money for the purpose of procuring a suitable site and 
 13.4   the erection of erecting on it a suitable county building 
 13.5   thereon, for the building or repairing of a race track and for 
 13.6   grading and improving the grounds, to be used in connection with 
 13.7   such a county fair, but the site and the building and 
 13.8   improvements shall be and remain the property of the county, and 
 13.9   the annual appropriation shall be used only for the purpose 
 13.10  of so acquiring the site and building and grading and for the 
 13.11  necessary care, repair, maintenance, and upkeep thereof.  In any 
 13.12  county in this state now or hereafter having a population in 
 13.13  excess of 150,000 and an area of more than 5,000 square miles, 
 13.14  the county agricultural society may expend funds appropriated to 
 13.15  it for the year 1957 for the payment of debts and liabilities 
 13.16  incurred during the year 1956 in the construction of county fair 
 13.17  buildings, notwithstanding the provisions of Laws 1941, chapter 
 13.18  118. 
 13.19     Sec. 21.  Minnesota Statutes 2002, section 38.16, is 
 13.20  amended to read: 
 13.21     38.16 [EXEMPTION FROM ZONING ORDINANCES.] 
 13.22     When lands lying within the corporate limits of towns or 
 13.23  cities of the first or second class of the state are owned by a 
 13.24  county or agricultural society and used for agricultural fair 
 13.25  purposes, the lands and the buildings now or hereafter erected 
 13.26  thereon shall be are exempt from the zoning, building, and other 
 13.27  ordinances of the town or city; provided, that no license or 
 13.28  permit need be obtained from, nor fee paid to, the town or city 
 13.29  in connection with the use of the lands.  
 13.30     Sec. 22.  Minnesota Statutes 2003 Supplement, section 
 13.31  41A.09, subdivision 3a, is amended to read: 
 13.32     Subd. 3a.  [ETHANOL PRODUCER PAYMENTS.] (a) The 
 13.33  commissioner shall make cash payments to producers of ethanol 
 13.34  located in the state that have begun production by June 30, 2000.
 13.35  For the purpose of this subdivision, an entity that holds a 
 13.36  controlling interest in more than one ethanol plant is 
 14.1   considered a single producer.  The amount of the payment for 
 14.2   each producer's annual production, except as provided in 
 14.3   paragraph (c), is 20 cents per gallon for each gallon of ethanol 
 14.4   produced on or before June 30, 2000, or ten years after the 
 14.5   start of production, whichever is later.  The first claim for 
 14.6   production after June 30, 2003, must be accompanied by Annually, 
 14.7   within 90 days of the end of its fiscal year, an ethanol 
 14.8   producer receiving payments under this subdivision must file a 
 14.9   disclosure statement on a form provided by the commissioner.  
 14.10  The initial disclosure statement must include a detailed summary 
 14.11  description of the organization of the business structure of the 
 14.12  claimant, a listing of the percentages of ownership by any 
 14.13  person or other entity with an ownership interest of five 
 14.14  percent or greater, the distribution of income received by the 
 14.15  claimant, including operating income and payments under this 
 14.16  subdivision and a copy of its annual audited financial 
 14.17  statements, including the auditor's report and footnotes.  The 
 14.18  disclosure statement must include information sufficient to 
 14.19  demonstrate that a majority of the ultimate beneficial interest 
 14.20  in the demonstrating what percentage of the entity receiving 
 14.21  payments under this section is owned by farmers or spouses of 
 14.22  farmers, as defined in or other entities eligible to farm or own 
 14.23  agricultural land in Minnesota under the provisions of section 
 14.24  500.24, residing in Minnesota.  Subsequent quarterly claims 
 14.25  annual reports must report reflect noncumulative changes in 
 14.26  ownership of ten percent or more of the entity.  Payments must 
 14.27  not be made to a claimant that has less than a majority of 
 14.28  Minnesota farmer control except that the commissioner may grant 
 14.29  an exemption from the farmer majority ownership requirement to a 
 14.30  claimant that, on May 29, 2003, has demonstrated greater than 40 
 14.31  percent farmer ownership which, when combined with ownership 
 14.32  interests of persons residing within 30 miles of the plant, 
 14.33  exceeds 50 percent.  In addition, a claimant located in a city 
 14.34  of the first class which qualifies for payments in all other 
 14.35  respects is not subject to this condition.  Information provided 
 14.36  under this paragraph is The report need not disclose the 
 15.1   identity of the persons or entities eligible to farm or own 
 15.2   agricultural land with ownership interests, individuals residing 
 15.3   within 30 miles of the plant, or of any other entity with less 
 15.4   than ten percent ownership interest, but the claimant must 
 15.5   retain information within its files confirming the accuracy of 
 15.6   the data provided.  This data must be made available to the 
 15.7   commissioner upon request.  Not later than the 15th day of 
 15.8   February in each year the commissioner shall deliver to the 
 15.9   chairs of the standing committees of the senate and the house of 
 15.10  representatives that deal with agricultural policy and 
 15.11  agricultural finance issues an annual report summarizing 
 15.12  aggregated data from plants receiving payments under this 
 15.13  section during the preceding calendar year.  Audited financial 
 15.14  statements and notes and disclosure statements submitted to the 
 15.15  commissioner are nonpublic data under section 13.02, subdivision 
 15.16  9.  Notwithstanding the provisions of chapter 13 relating to 
 15.17  nonpublic data, summaries of the submitted audited financial 
 15.18  reports and notes and disclosure statements will be contained in 
 15.19  the report to the committee chairs and will be public data.  
 15.20     (b) No payments shall be made for ethanol production that 
 15.21  occurs after June 30, 2010.  
 15.22     (c) If the level of production at an ethanol plant 
 15.23  increases due to an increase in the production capacity of the 
 15.24  plant, the payment under paragraph (a) applies to the additional 
 15.25  increment of production until ten years after the increased 
 15.26  production began.  Once a plant's production capacity reaches 
 15.27  15,000,000 gallons per year, no additional increment will 
 15.28  qualify for the payment. 
 15.29     (d) Total payments under paragraphs (a) and (c) to a 
 15.30  producer in a fiscal year may not exceed $3,000,000. 
 15.31     (e) By the last day of October, January, April, and July, 
 15.32  each producer shall file a claim for payment for ethanol 
 15.33  production during the preceding three calendar months.  A 
 15.34  producer that files a claim under this subdivision shall include 
 15.35  a statement of the producer's total ethanol production in 
 15.36  Minnesota during the quarter covered by the claim.  For each 
 16.1   claim and statement of total ethanol production filed under this 
 16.2   subdivision, the volume of ethanol production must be examined 
 16.3   by an independent certified public accountant in accordance with 
 16.4   standards established by the American Institute of Certified 
 16.5   Public Accountants. 
 16.6      (f) Payments shall be made November 15, February 15, May 
 16.7   15, and August 15.  A separate payment shall be made for each 
 16.8   claim filed.  Except as provided in paragraph (g), the total 
 16.9   quarterly payment to a producer under this paragraph may not 
 16.10  exceed $750,000.  
 16.11     (g) Notwithstanding the quarterly payment limits of 
 16.12  paragraph (f), the commissioner shall make an additional payment 
 16.13  in the fourth quarter of each fiscal year to ethanol producers 
 16.14  for the lesser of:  (1) 20 cents per gallon of production in the 
 16.15  fourth quarter of the year that is greater than 3,750,000 
 16.16  gallons; or (2) the total amount of payments lost during the 
 16.17  first three quarters of the fiscal year due to plant outages, 
 16.18  repair, or major maintenance.  Total payments to an ethanol 
 16.19  producer in a fiscal year, including any payment under this 
 16.20  paragraph, must not exceed the total amount the producer is 
 16.21  eligible to receive based on the producer's approved production 
 16.22  capacity.  The provisions of this paragraph apply only to 
 16.23  production losses that occur in quarters beginning after 
 16.24  December 31, 1999. 
 16.25     (h) The commissioner shall reimburse ethanol producers for 
 16.26  any deficiency in payments during earlier quarters if the 
 16.27  deficiency occurred because appropriated money was insufficient 
 16.28  to make timely payments in the full amount provided in paragraph 
 16.29  (a).  Notwithstanding the quarterly or annual payment 
 16.30  limitations in this subdivision, the commissioner shall begin 
 16.31  making payments for earlier deficiencies in each fiscal year 
 16.32  that appropriations for ethanol payments exceed the amount 
 16.33  required to make eligible scheduled payments.  Payments for 
 16.34  earlier deficiencies must continue until the deficiencies for 
 16.35  each producer are paid in full. 
 16.36     Sec. 23.  Minnesota Statutes 2002, section 41B.03, 
 17.1   subdivision 3, is amended to read: 
 17.2      Subd. 3.  [ELIGIBILITY FOR BEGINNING FARMER LOANS.] (a) In 
 17.3   addition to the requirements under subdivision 1, a prospective 
 17.4   borrower for a beginning farm loan in which the authority holds 
 17.5   an interest, must:  
 17.6      (1) have sufficient education, training, or experience in 
 17.7   the type of farming for which the loan is desired; 
 17.8      (2) have a total net worth, including assets and 
 17.9   liabilities of the borrower's spouse and dependents, of less 
 17.10  than $200,000 in 1991 $350,000 in 2004 and an amount in 
 17.11  subsequent years which is adjusted for inflation by 
 17.12  multiplying $200,000 that amount by the cumulative inflation 
 17.13  rate as determined by the United States All-Items Consumer Price 
 17.14  Index; 
 17.15     (3) demonstrate a need for the loan; 
 17.16     (4) demonstrate an ability to repay the loan; 
 17.17     (5) certify that the agricultural land to be purchased will 
 17.18  be used by the borrower for agricultural purposes; 
 17.19     (6) certify that farming will be the principal occupation 
 17.20  of the borrower; 
 17.21     (7) agree to participate in a farm management program 
 17.22  approved by the commissioner of agriculture for at least the 
 17.23  first three years of the loan, if an approved program is 
 17.24  available within 45 miles from the borrower's residence.  The 
 17.25  commissioner may waive this requirement for any of the programs 
 17.26  administered by the authority if the participant requests a 
 17.27  waiver and has either a four-year degree in an agricultural 
 17.28  program or certification as an adult farm management instructor; 
 17.29  and 
 17.30     (8) agree to file an approved soil and water conservation 
 17.31  plan with the Soil Conservation Service office in the county 
 17.32  where the land is located.  
 17.33     (b) If a borrower fails to participate under paragraph (a), 
 17.34  clause (7), the borrower is subject to penalty as determined by 
 17.35  the authority. 
 17.36     Sec. 24.  Minnesota Statutes 2002, section 41B.036, is 
 18.1   amended to read: 
 18.2      41B.036 [GENERAL POWERS OF THE AUTHORITY.] 
 18.3      For the purpose of exercising the specific powers granted 
 18.4   in section 41B.04 and effectuating the other purposes of 
 18.5   sections 41B.01 to 41B.23 the authority has the general powers 
 18.6   granted in this section. 
 18.7      (a) It may sue and be sued. 
 18.8      (b) It may have a seal and alter the seal. 
 18.9      (c) It may make, and from time to time, amend and repeal 
 18.10  rules consistent with sections 41B.01 to 41B.23. 
 18.11     (d) It may acquire, hold, and dispose of real or personal 
 18.12  property for its corporate purposes. 
 18.13     (e) It may enter into agreements, contracts, or other 
 18.14  transactions with any federal or state agency, any person and 
 18.15  any domestic or foreign partnership, corporation, association, 
 18.16  or organization, including contracts or agreements for 
 18.17  administration and implementation of all or part of sections 
 18.18  41B.01 to 41B.23. 
 18.19     (f) It may acquire real property, or an interest therein, 
 18.20  in its own name, by purchase or foreclosure, where such 
 18.21  acquisition is necessary or appropriate. 
 18.22     (g) It may provide general technical services related to 
 18.23  rural finance. 
 18.24     (h) It may provide general consultative assistance services 
 18.25  related to rural finance. 
 18.26     (i) It may promote research and development in matters 
 18.27  related to rural finance. 
 18.28     (j) It may enter into agreements with lenders, borrowers, 
 18.29  or the issuers of securities for the purpose of regulating the 
 18.30  development and management of farms financed in whole or in part 
 18.31  by the proceeds of qualified agricultural loans. 
 18.32     (k) It may enter into agreements with other appropriate 
 18.33  federal, state, or local governmental units to foster rural 
 18.34  finance.  It may give advance reservations of loan financing as 
 18.35  part of the agreements, with the understanding that the 
 18.36  authority will only approve the loans pursuant to normal 
 19.1   procedures, and may adopt special procedures designed to meet 
 19.2   problems inherent in such programs. 
 19.3      (l) It may undertake and carry out studies and analyses of 
 19.4   rural financing needs within the state and ways of meeting such 
 19.5   needs including:  data with respect to geographical 
 19.6   distribution; farm size; the distribution of farm credit needs 
 19.7   according to debt ratios and similar factors; the amount and 
 19.8   quality of available financing and its distribution according to 
 19.9   factors affecting rural financing needs and the meeting thereof; 
 19.10  and may make the results of such studies and analyses available 
 19.11  to the public and may engage in research and disseminate 
 19.12  information on rural finance. 
 19.13     (m) It may survey and investigate the rural financing needs 
 19.14  throughout the state and make recommendations to the governor 
 19.15  and the legislature as to legislation and other measures 
 19.16  necessary or advisable to alleviate any existing shortage in the 
 19.17  state. 
 19.18     (n) It may establish cooperative relationships with such 
 19.19  county and multicounty authorities as may be established and may 
 19.20  develop priorities for the utilization of authority resources 
 19.21  and assistance within a region in cooperation with county and 
 19.22  multicounty authorities. 
 19.23     (o) It may contract with, use, or employ any federal, 
 19.24  state, regional, or local public or private agency or 
 19.25  organization, legal counsel, financial advisors, investment 
 19.26  bankers or others, upon terms it deems necessary or desirable, 
 19.27  to assist in the exercise of any of the powers granted in 
 19.28  sections 41B.01 to 41B.23 and to carry out the objectives of 
 19.29  sections 41B.01 to 41B.23 and may pay for the services from 
 19.30  authority funds. 
 19.31     (p) It may establish cooperative relationships with 
 19.32  counties to develop priorities for the use of authority 
 19.33  resources and assistance within counties and to consider county 
 19.34  plans and programs in the process of setting the priorities. 
 19.35     (q) It may delegate any of its powers to its officers or 
 19.36  staff. 
 20.1      (r) It may enter into agreements with qualified 
 20.2   agricultural lenders or others insuring or guaranteeing to the 
 20.3   state the payment of all or a portion of qualified agricultural 
 20.4   loans. 
 20.5      (s) It may enter into agreements with eligible agricultural 
 20.6   lenders providing for advance reservations of purchases of 
 20.7   participation interests in restructuring loans, if the 
 20.8   agreements provide that the authority may only purchase 
 20.9   participation interests in restructuring loans under the normal 
 20.10  procedure.  The authority may provide in an agreement for 
 20.11  special procedures or requirements designed to meet specific 
 20.12  conditions or requirements. 
 20.13     (t) It may allow farmers who are natural persons to combine 
 20.14  programs of the federal Agriculture Credit Act of 1987 with 
 20.15  programs of the Rural Finance Authority. 
 20.16     (u) It, after providing notice to the State Board of 
 20.17  Investment, may transfer funds from the security account created 
 20.18  under section 41B.19, subdivision 5, in such amounts and for 
 20.19  such time as funds may be available, to a special revenue 
 20.20  account for qualified agricultural loans or for participation in 
 20.21  qualified agricultural loans created through agreements under 
 20.22  paragraph (k). 
 20.23     (v) From within available funds generated by program fees, 
 20.24  it may provide partial or full tuition assistance for farm 
 20.25  management programs required under section 41B.03, subdivision 
 20.26  3, clause (7). 
 20.27     Sec. 25.  Minnesota Statutes 2002, section 41B.039, 
 20.28  subdivision 2, is amended to read: 
 20.29     Subd. 2.  [STATE PARTICIPATION.] The state may participate 
 20.30  in a new real estate loan with an eligible lender to a beginning 
 20.31  farmer to the extent of 45 percent of the principal amount of 
 20.32  the loan or $125,000 $200,000, whichever is less.  The interest 
 20.33  rates and repayment terms of the authority's participation 
 20.34  interest may be different than the interest rates and repayment 
 20.35  terms of the lender's retained portion of the loan. 
 20.36     Sec. 26.  Minnesota Statutes 2002, section 41B.04, 
 21.1   subdivision 8, is amended to read: 
 21.2      Subd. 8.  [STATE'S PARTICIPATION.] With respect to loans 
 21.3   that are eligible for restructuring under sections 41B.01 to 
 21.4   41B.23 and upon acceptance by the authority, the authority shall 
 21.5   enter into a participation agreement or other financial 
 21.6   arrangement whereby it shall participate in a restructured loan 
 21.7   to the extent of 45 percent of the primary principal or 
 21.8   $150,000 $225,000, whichever is less.  The authority's portion 
 21.9   of the loan must be protected during the authority's 
 21.10  participation by the first mortgage held by the eligible lender 
 21.11  to the extent of its participation in the loan. 
 21.12     Sec. 27.  [41B.041] [DAIRY UPGRADE PILOT LOAN PROGRAM.] 
 21.13     Subdivision 1.  [ESTABLISHMENT.] The authority shall 
 21.14  establish and implement a dairy upgrade pilot loan program to 
 21.15  help finance the purchase of breeding stock, meet feedlot and 
 21.16  other environmental regulations, purchase dairy-related 
 21.17  equipment, and make dairy facilities improvements. 
 21.18     Subd. 2.  [ELIGIBILITY.] Notwithstanding section 41B.03, to 
 21.19  be eligible for this program, a borrower must: 
 21.20     (1) be a resident of Minnesota or general partnership or a 
 21.21  family farm corporation, authorized farm corporation, family 
 21.22  farm partnership, or authorized farm partnership as defined in 
 21.23  section 500.24, subdivision 2; 
 21.24     (2) be the principal operator of a dairy farm; 
 21.25     (3) have a total net worth, including assets and 
 21.26  liabilities of the borrower's spouse and dependents, no greater 
 21.27  than the amount stipulated in section 41B.03, subdivision 3; 
 21.28     (4) demonstrate an ability to repay the loan; and 
 21.29     (5) hold an appropriate feedlot registration or be using 
 21.30  the loan under this program to meet registration requirements. 
 21.31     Subd. 3.  [LOANS.] (a) The authority may participate in a 
 21.32  dairy upgrade loan with an eligible lender to a farmer who is 
 21.33  eligible under subdivision 2.  Participation is limited to 45 
 21.34  percent of the principal amount of the loan or $50,000, 
 21.35  whichever is less.  The interest rates and repayment terms of 
 21.36  the authority's participation interest may differ from the 
 22.1   interest rates and repayment terms of the lender's retained 
 22.2   portion of the loan.  The authority may review the interest 
 22.3   annually after June 30, 2007, and make adjustments as necessary. 
 22.4   Participation interest on loans made under this section before 
 22.5   July 1, 2007, must not exceed three percent. 
 22.6      (b) Standards for loan amortization must be set by the 
 22.7   rural finance authority and must not exceed ten years. 
 22.8      (c) Security for the dairy upgrade loans must be a personal 
 22.9   note executed by the borrower and whatever other security is 
 22.10  required by the eligible lender or the authority. 
 22.11     (d) Refinancing of existing debt is not an eligible purpose.
 22.12     (e) The authority may impose a reasonable, nonrefundable 
 22.13  application fee for a dairy upgrade loan.  The authority may 
 22.14  review the fee annually and make adjustments as necessary.  The 
 22.15  initial application fee is $50.  Application fees received by 
 22.16  the authority must be deposited in the revolving loan account 
 22.17  established in section 41B.06. 
 22.18     (f) Dairy upgrade loans under this program must be made 
 22.19  using money in the revolving loan account established in section 
 22.20  41B.06. 
 22.21     Sec. 28.  Minnesota Statutes 2002, section 41B.042, 
 22.22  subdivision 4, is amended to read: 
 22.23     Subd. 4.  [PARTICIPATION LIMIT; INTEREST.] The authority 
 22.24  may participate in new seller-sponsored loans to the extent of 
 22.25  45 percent of the principal amount of the loan or 
 22.26  $125,000 $200,000, whichever is less.  The interest rates and 
 22.27  repayment terms of the authority's participation interest may be 
 22.28  different than the interest rates and repayment terms of the 
 22.29  seller's retained portion of the loan. 
 22.30     Sec. 29.  Minnesota Statutes 2002, section 41B.043, 
 22.31  subdivision 1b, is amended to read: 
 22.32     Subd. 1b.  [LOAN PARTICIPATION.] The authority may 
 22.33  participate in an agricultural improvement loan with an eligible 
 22.34  lender to a farmer who meets the requirements of section 41B.03, 
 22.35  subdivision 1, clauses (1) and (2), and who is actively engaged 
 22.36  in farming.  Participation is limited to 45 percent of the 
 23.1   principal amount of the loan or $125,000 $200,000, whichever is 
 23.2   less.  The interest rates and repayment terms of the authority's 
 23.3   participation interest may be different than the interest rates 
 23.4   and repayment terms of the lender's retained portion of the loan.
 23.5      Sec. 30.  Minnesota Statutes 2002, section 41B.043, is 
 23.6   amended by adding a subdivision to read: 
 23.7      Subd. 5.  [TOTAL NET WORTH LIMIT.] A prospective borrower 
 23.8   for an agricultural improvement loan in which the authority 
 23.9   holds an interest must have a total net worth, including assets 
 23.10  and liabilities of the borrower's spouse and dependents, of less 
 23.11  than $350,000 in 2004 and an amount in subsequent years which is 
 23.12  adjusted for inflation by multiplying that amount by the 
 23.13  cumulative inflation rate as determined by the United States 
 23.14  All-Items Consumer Price Index. 
 23.15     Sec. 31.  Minnesota Statutes 2002, section 41B.045, 
 23.16  subdivision 2, is amended to read: 
 23.17     Subd. 2.  [LOAN PARTICIPATION.] The authority may 
 23.18  participate in a livestock expansion loan with an eligible 
 23.19  lender to a livestock farmer who meets the requirements of 
 23.20  section 41B.03, subdivision 1, clauses (1) and (2), and who are 
 23.21  actively engaged in a livestock operation.  A prospective 
 23.22  borrower must have a total net worth, including assets and 
 23.23  liabilities of the borrower's spouse and dependents, of less 
 23.24  than $400,000 in 1999 and an amount in subsequent years which is 
 23.25  adjusted for inflation by multiplying $400,000 by the cumulative 
 23.26  inflation rate as determined by the United States All-Items 
 23.27  Consumer Price Index. 
 23.28     Participation is limited to 45 percent of the principal 
 23.29  amount of the loan or $250,000 $275,000, whichever is less.  The 
 23.30  interest rates and repayment terms of the authority's 
 23.31  participation interest may be different from the interest rates 
 23.32  and repayment terms of the lender's retained portion of the loan.
 23.33     Sec. 32.  Minnesota Statutes 2002, section 41B.046, 
 23.34  subdivision 5, is amended to read: 
 23.35     Subd. 5.  [LOANS.] (a) The authority may participate in a 
 23.36  stock loan with an eligible lender to a farmer who is eligible 
 24.1   under subdivision 4.  Participation is limited to 45 percent of 
 24.2   the principal amount of the loan or $24,000 $40,000, whichever 
 24.3   is less.  The interest rates and repayment terms of the 
 24.4   authority's participation interest may differ from the interest 
 24.5   rates and repayment terms of the lender's retained portion of 
 24.6   the loan, but the authority's interest rate must not exceed 50 
 24.7   percent of the lender's interest rate. 
 24.8      (b) No more than 95 percent of the purchase price of the 
 24.9   stock may be financed under this program. 
 24.10     (c) Security for stock loans must be the stock purchased, a 
 24.11  personal note executed by the borrower, and whatever other 
 24.12  security is required by the eligible lender or the authority. 
 24.13     (d) The authority may impose a reasonable nonrefundable 
 24.14  application fee for each application for a stock loan.  The 
 24.15  authority may review the fee annually and make adjustments as 
 24.16  necessary.  The application fee is initially $50.  Application 
 24.17  fees received by the authority must be deposited in the 
 24.18  value-added agricultural product revolving fund. 
 24.19     (e) Stock loans under this program will be made using money 
 24.20  in the value-added agricultural product revolving fund loan 
 24.21  account established under subdivision 3 in section 41B.06. 
 24.22     (f) The authority may not grant stock loans in a cumulative 
 24.23  amount exceeding $2,000,000 for the financing of stock purchases 
 24.24  in any one cooperative. 
 24.25     (g) Repayments of financial assistance under this section, 
 24.26  including principal and interest, must be deposited into the 
 24.27  revolving loan account established in section 41B.06. 
 24.28     Sec. 33.  Minnesota Statutes 2002, section 41B.049, 
 24.29  subdivision 2, is amended to read: 
 24.30     Subd. 2.  [REVOLVING FUND DEPOSIT OF REPAYMENTS.] There is 
 24.31  established in the state treasury a revolving fund, which is 
 24.32  eligible to receive appropriations and the transfer of funds 
 24.33  from other services.  All repayments of financial assistance 
 24.34  granted under subdivision 1, including principal and interest, 
 24.35  must be deposited into this fund.  Interest earned on money in 
 24.36  the fund accrues to the fund, and money in the fund is 
 25.1   appropriated to the commissioner of agriculture for purposes of 
 25.2   the manure digester loan program, including costs incurred by 
 25.3   the authority to establish and administer the program the 
 25.4   revolving loan account established in section 41B.06. 
 25.5      Sec. 34.  [41B.06] [RURAL FINANCE AUTHORITY REVOLVING LOAN 
 25.6   ACCOUNT.] 
 25.7      There is established in the rural finance administration 
 25.8   fund a rural finance authority revolving loan account that is 
 25.9   eligible to receive appropriations and the transfer of loan 
 25.10  funds from other programs.  All repayments of financial 
 25.11  assistance granted from this account, including principal and 
 25.12  interest, must be deposited into this account.  Interest earned 
 25.13  on money in the account accrues to the account, and the money in 
 25.14  the account is appropriated to the commissioner of agriculture 
 25.15  for purposes of the rural finance authority shared savings loan 
 25.16  program under section 17.115; dairy upgrade loan program under 
 25.17  section 41B.041; methane digester loan program under section 
 25.18  17.115, subdivision 5; and value-added agricultural product loan 
 25.19  program under section 41B.046, including costs incurred by the 
 25.20  authority to establish and administer the programs. 
 25.21     Sec. 35.  Minnesota Statutes 2002, section 41C.02, 
 25.22  subdivision 12, is amended to read: 
 25.23     Subd. 12.  [LOW OR MODERATE NET WORTH.] "Low or moderate 
 25.24  net worth" means: 
 25.25     (1) for an individual, an aggregate net worth of the 
 25.26  individual and the individual's spouse and minor children of 
 25.27  less than $200,000 in 1991 $350,000 in 2004 and an amount in 
 25.28  subsequent years which is adjusted for inflation by 
 25.29  multiplying $200,000 that amount by the cumulative inflation 
 25.30  rate as determined by the United States All-Items Consumer Price 
 25.31  Index; or 
 25.32     (2) for a partnership, an aggregate net worth of all 
 25.33  partners, including each partner's net capital in the 
 25.34  partnership, and each partner's spouse and minor children of 
 25.35  less than $400,000 in 1991 and an amount in subsequent years 
 25.36  which is adjusted for inflation by multiplying $400,000 by the 
 26.1   cumulative inflation rate as determined by the United States 
 26.2   All-Items Consumer Price Index twice the amount set for an 
 26.3   individual in clause (1).  However, the aggregate net worth of 
 26.4   each partner and that partner's spouse and minor children may 
 26.5   not exceed $200,000 in 1991 and an amount in subsequent years 
 26.6   which is adjusted for inflation by multiplying $200,000 by the 
 26.7   cumulative inflation rate as determined by the United States 
 26.8   All-Items Consumer Price Index the amount set for an individual 
 26.9   in clause (1). 
 26.10     Sec. 36.  [116J.407] [DAIRY MODERNIZATION GRANTS.] 
 26.11     Subdivision 1.  [GENERALLY.] The commissioner shall make 
 26.12  funds available to eligible regional or statewide development 
 26.13  organizations defined under section 116J.8731 to be used for the 
 26.14  purposes of this section. 
 26.15     Subd. 2.  [ELIGIBLE EXPENDITURES.] Grant funds may be used 
 26.16  for the acquisition, construction, or improvement of buildings 
 26.17  or facilities, or the acquisition of equipment, for dairy animal 
 26.18  housing, confinement, animal feeding, milk production, and waste 
 26.19  management, including the following, if related to dairy animals:
 26.20     (1) freestall barns; 
 26.21     (2) fences; 
 26.22     (3) watering facilities; 
 26.23     (4) feed storage and handling equipment; 
 26.24     (5) milking parlors; 
 26.25     (6) robotic equipment; 
 26.26     (7) scales; 
 26.27     (8) milk storage and cooling facilities; 
 26.28     (9) bulk tanks; 
 26.29     (10) manure pumping and storage facilities; 
 26.30     (11) pasture and forage improvement measures; 
 26.31     (12) on-farm processing facilities; 
 26.32     (13) digesters; and 
 26.33     (14) equipment used to produce energy. 
 26.34     Subd. 3.  [APPLICATION PROCESS.] The commissioner of 
 26.35  agriculture and the commissioner of employment and economic 
 26.36  development shall establish a process by which an eligible dairy 
 27.1   producer may make application for assistance under this section 
 27.2   to the county in which the producer is located.  The application 
 27.3   must require the producer and county to provide information 
 27.4   regarding the producer's existing business, the intended use of 
 27.5   the requested funds, and other information the commissioners 
 27.6   find necessary to evaluate the feasibility, likely success, and 
 27.7   economic return of the project, and to ensure that grant funds 
 27.8   can be provided consistent with other state and federal laws. 
 27.9      Sec. 37.  Minnesota Statutes 2002, section 156.12, 
 27.10  subdivision 2, is amended to read: 
 27.11     Subd. 2.  [AUTHORIZED ACTIVITIES.] No provision of this 
 27.12  chapter shall be construed to prohibit: 
 27.13     (a) a person from rendering necessary gratuitous assistance 
 27.14  in the treatment of any animal when the assistance does not 
 27.15  amount to prescribing, testing for, or diagnosing, operating, or 
 27.16  vaccinating and when the attendance of a licensed veterinarian 
 27.17  cannot be procured; 
 27.18     (b) a person who is a regular student in an accredited or 
 27.19  approved college of veterinary medicine from performing duties 
 27.20  or actions assigned by instructors or preceptors or working 
 27.21  under the direct supervision of a licensed veterinarian; 
 27.22     (c) a veterinarian regularly licensed in another 
 27.23  jurisdiction from consulting with a licensed veterinarian in 
 27.24  this state; 
 27.25     (d) the owner of an animal and the owner's regular employee 
 27.26  from caring for and administering to the animal belonging to the 
 27.27  owner, except where the ownership of the animal was transferred 
 27.28  for purposes of circumventing this chapter; 
 27.29     (e) veterinarians employed by the University of Minnesota 
 27.30  from performing their duties with the College of Veterinary 
 27.31  Medicine, College of Agriculture, Agricultural Experiment 
 27.32  Station, Agricultural Extension Service, Medical School, School 
 27.33  of Public Health, or other unit within the university; or a 
 27.34  person from lecturing or giving instructions or demonstrations 
 27.35  at the university or in connection with a continuing education 
 27.36  course or seminar to veterinarians; 
 28.1      (f) any person from selling or applying any pesticide, 
 28.2   insecticide or herbicide; 
 28.3      (g) any person from engaging in bona fide scientific 
 28.4   research or investigations which reasonably requires 
 28.5   experimentation involving animals; 
 28.6      (h) any employee of a licensed veterinarian from performing 
 28.7   duties other than diagnosis, prescription or surgical correction 
 28.8   under the direction and supervision of the veterinarian, who 
 28.9   shall be responsible for the performance of the employee; 
 28.10     (i) a graduate of a foreign college of veterinary medicine 
 28.11  from working under the direct personal instruction, control, or 
 28.12  supervision of a veterinarian faculty member of the College of 
 28.13  Veterinary Medicine, University of Minnesota in order to 
 28.14  complete the requirements necessary to obtain an ECFVG 
 28.15  certificate; or 
 28.16     (j) a person from performing as a diagnostician at the 
 28.17  University of Minnesota Veterinary Diagnostic Laboratory if the 
 28.18  person meets the licensure requirements in subdivision 6. 
 28.19     Sec. 38.  Minnesota Statutes 2002, section 156.12, is 
 28.20  amended by adding a subdivision to read: 
 28.21     Subd. 6.  [FACULTY LICENSURE.] (a) Veterinary Medical 
 28.22  Center clinicians at the College of Veterinary Medicine, 
 28.23  University of Minnesota who are engaged in the practice of 
 28.24  veterinary medicine as defined in subdivision 1 and who treat 
 28.25  animals owned by clients of the Veterinary Medical Center must 
 28.26  possess the same license required by other veterinary 
 28.27  practitioners in the state of Minnesota except for persons 
 28.28  covered by paragraphs (b) and (c). 
 28.29     (b) A specialty practitioner in a hard-to-fill faculty 
 28.30  position who has been employed at the College of Veterinary 
 28.31  Medicine, University of Minnesota for five years or more prior 
 28.32  to 2003 or is specialty board certified by the American 
 28.33  Veterinary Medical Association may be granted a specialty 
 28.34  faculty Veterinary Medical Center clinician license which will 
 28.35  allow the licensee to practice veterinary medicine in the state 
 28.36  of Minnesota in the specialty area of the licensee's training 
 29.1   and only within the scope of employment at the Veterinary 
 29.2   Medical Center. 
 29.3      (c) A specialty practitioner in a hard-to-fill faculty 
 29.4   position at the College of Veterinary Medicine, University of 
 29.5   Minnesota who has graduated from a board-approved foreign 
 29.6   veterinary school may be granted a temporary faculty Veterinary 
 29.7   Medical Center clinician license.  The temporary faculty 
 29.8   Veterinary Medical Center clinician license expires in two years 
 29.9   and allows the licensee to practice veterinary medicine as 
 29.10  defined in subdivision 1 and treat animals owned by clients of 
 29.11  the Veterinary Medical Center.  The temporary faculty Veterinary 
 29.12  Medical Center clinician license allows the licensee to practice 
 29.13  veterinary medicine in the state of Minnesota in the specialty 
 29.14  area of the licensee's training and only within the scope of 
 29.15  employment at the Veterinary Medical Center.  The holder of a 
 29.16  temporary faculty Veterinary Medical Center clinician license 
 29.17  who is enrolled in a PhD program may apply for two two-year 
 29.18  extensions of an expiring temporary faculty Veterinary Medical 
 29.19  Center clinician license.  Any other holder of a temporary 
 29.20  faculty Veterinary Medical Center clinician license may apply 
 29.21  for one two-year extension of the expiring temporary faculty 
 29.22  Veterinary Medical Center clinician license.  Temporary faculty 
 29.23  Veterinary Medical Center clinician licenses that are allowed to 
 29.24  expire may not be renewed.  The board shall grant an extension 
 29.25  to a licensee who demonstrates suitable progress toward 
 29.26  completing the requirements of their academic program, specialty 
 29.27  board certification, or full licensure in Minnesota by a 
 29.28  graduate of a foreign veterinary college. 
 29.29     (d) Temporary and specialty faculty Veterinary Medical 
 29.30  Center clinician licensees must abide by all the laws governing 
 29.31  the practice of veterinary medicine in the state of Minnesota 
 29.32  and are subject to the same disciplinary action as any other 
 29.33  veterinarian licensed in the state of Minnesota. 
 29.34     (e) The fee for a license issued under this subdivision is 
 29.35  the same as for a regular license to practice veterinary 
 29.36  medicine in Minnesota.  License payment deadlines, late payment 
 30.1   fees, and other license requirements are also the same as for 
 30.2   regular licenses. 
 30.3      Sec. 39.  Minnesota Statutes 2002, section 223.17, 
 30.4   subdivision 3, is amended to read: 
 30.5      Subd. 3.  [GRAIN BUYERS AND STORAGE ACCOUNT; FEES.] The 
 30.6   commissioner shall set the fees for inspections under sections 
 30.7   223.15 to 223.22 at levels necessary to pay the expenses of 
 30.8   administering and enforcing sections 223.15 to 223.22.  
 30.9      The fee for any license issued or renewed after June 30, 
 30.10  2001 2004, shall must be set according to the following 
 30.11  schedule: 
 30.12     (a) $125 $140 plus $100 $110 for each additional location 
 30.13  for grain buyers whose gross annual purchases are less than 
 30.14  $100,000; 
 30.15     (b) $250 $275 plus $100 $110 for each additional location 
 30.16  for grain buyers whose gross annual purchases are at least 
 30.17  $100,000, but not more than $750,000; 
 30.18     (c) $375 $415 plus $200 $220 for each additional location 
 30.19  for grain buyers whose gross annual purchases are more than 
 30.20  $750,000 but not more than $1,500,000; 
 30.21     (d) $500 $550 plus $200 $220 for each additional location 
 30.22  for grain buyers whose gross annual purchases are more than 
 30.23  $1,500,000 but not more than $3,000,000; and 
 30.24     (e) $625 $700 plus $200 $220 for each additional location 
 30.25  for grain buyers whose gross annual purchases are more than 
 30.26  $3,000,000.  
 30.27     (f) A penalty amount not to exceed ten percent of the fees 
 30.28  due may be imposed by the commissioner for each month for which 
 30.29  the fees are delinquent. 
 30.30     There is created the grain buyers and storage account in 
 30.31  the agricultural fund.  Money collected pursuant to sections 
 30.32  223.15 to 223.19 shall must be paid into the state treasury and 
 30.33  credited to the grain buyers and storage account and is 
 30.34  appropriated to the commissioner for the administration and 
 30.35  enforcement of sections 223.15 to 223.22. 
 30.36     Sec. 40.  Minnesota Statutes 2003 Supplement, section 
 31.1   223.17, subdivision 4, is amended to read: 
 31.2      Subd. 4.  [BOND.] Before a grain buyer's license is issued, 
 31.3   the applicant for the license must file with the commissioner a 
 31.4   bond in a penal sum prescribed by the commissioner but not less 
 31.5   than the following amounts:  
 31.6      (a) $10,000 for grain buyers whose gross annual purchases 
 31.7   are $100,000 or less; 
 31.8      (b) $20,000 for grain buyers whose gross annual purchases 
 31.9   are more than $100,000 but not more than $750,000; 
 31.10     (c) $30,000 for grain buyers whose gross annual purchases 
 31.11  are more than $750,000 but not more than $1,500,000; 
 31.12     (d) $40,000 for grain buyers whose gross annual purchases 
 31.13  are more than $1,500,000 but not more than $3,000,000; and 
 31.14     (e) $50,000 for grain buyers whose gross annual purchases 
 31.15  exceed are more than $3,000,000 but not more than $6,000,000; 
 31.16     (f) $70,000 for grain buyers whose gross annual purchases 
 31.17  are more than $6,000,000 but not more than $12,000,000; 
 31.18     (g) $125,000 for grain buyers whose gross annual purchases 
 31.19  are more than $12,000,000 but not more than $24,000,000; and 
 31.20     (h) $150,000 for grain buyers whose gross annual purchases 
 31.21  exceed $24,000,000.  
 31.22     A grain buyer who has filed a bond with the commissioner 
 31.23  prior to July 1, 1983 2004, is not required to increase the 
 31.24  amount of the bond to comply with this section until July 1, 
 31.25  1984 2005.  The commissioner may postpone an increase in the 
 31.26  amount of the bond until July 1, 1985 2006, if a licensee 
 31.27  demonstrates that the increase will impose undue financial 
 31.28  hardship on the licensee, and that producers will not be harmed 
 31.29  as a result of the postponement.  The commissioner may impose 
 31.30  other restrictions on a licensee whose bond increase has been 
 31.31  postponed.  The amount of the bond shall be based on the most 
 31.32  recent financial statement of the grain buyer filed under 
 31.33  subdivision 6.  
 31.34     A first-time applicant for a grain buyer's license after 
 31.35  July 1, 1983 shall file a $20,000 $50,000 bond with the 
 31.36  commissioner.  This bond shall remain in effect for the first 
 32.1   year of the license.  Thereafter, the licensee shall comply with 
 32.2   the applicable bonding requirements contained in clauses (a) 
 32.3   to (e) (h). 
 32.4      In lieu of the bond required by this subdivision the 
 32.5   applicant may deposit with the commissioner of finance cash, a 
 32.6   certified check, a cashier's check, a postal, bank, or express 
 32.7   money order, assignable bonds or notes of the United States, or 
 32.8   an assignment of a bank savings account or investment 
 32.9   certificate or an irrevocable bank letter of credit as defined 
 32.10  in section 336.5-102, in the same amount as would be required 
 32.11  for a bond. 
 32.12     Sec. 41.  Minnesota Statutes 2002, section 223.17, 
 32.13  subdivision 6, is amended to read: 
 32.14     Subd. 6.  [FINANCIAL STATEMENTS.] For the purpose of fixing 
 32.15  or changing the amount of a required bond or for any other 
 32.16  proper reason, the commissioner shall require an annual 
 32.17  financial statement from a licensee which has been prepared in 
 32.18  accordance with generally accepted accounting principles and 
 32.19  which meets the following requirements:  
 32.20     (a) The financial statement shall include, but not be 
 32.21  limited to the following:  (1) a balance sheet; (2) a statement 
 32.22  of income (profit and loss); (3) a statement of retained 
 32.23  earnings; (4) a statement of changes in financial position; and 
 32.24  (5) a statement of the dollar amount of grain purchased in the 
 32.25  previous fiscal year of the grain buyer.  
 32.26     (b) The financial statement shall be accompanied by a 
 32.27  compilation report of the financial statement which is reviewed 
 32.28  financial statement or audit prepared by a grain commission firm 
 32.29  or a management firm approved by the commissioner or by an 
 32.30  independent public accountant, in accordance with standards 
 32.31  established by the American Institute of Certified Public 
 32.32  Accountants.  
 32.33     (c) The financial statement shall be accompanied by a 
 32.34  certification by the chief executive officer or the chief 
 32.35  executive officer's designee of the licensee, under penalty of 
 32.36  perjury, that the financial statement accurately reflects the 
 33.1   financial condition of the licensee for the period specified in 
 33.2   the statement. 
 33.3      Only one financial statement must be filed for a chain of 
 33.4   warehouses owned or operated as a single business entity, unless 
 33.5   otherwise required by the commissioner.  Any grain buyer having 
 33.6   a net worth in excess of $500,000,000 need not file the 
 33.7   financial statement required by this subdivision but must 
 33.8   provide the commissioner with a certified net worth statement. 
 33.9   All financial statements filed with the commissioner are private 
 33.10  or nonpublic data as provided in section 13.02. 
 33.11     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
 33.12     Sec. 42.  Minnesota Statutes 2002, section 231.16, is 
 33.13  amended to read: 
 33.14     231.16 [WAREHOUSE OPERATOR OR HOUSEHOLD GOODS WAREHOUSE 
 33.15  OPERATOR TO OBTAIN LICENSE.] 
 33.16     A warehouse operator or household goods warehouse operator 
 33.17  must be licensed annually by the department.  The department 
 33.18  shall prescribe the form of the written application.  If the 
 33.19  department approves the license application and the applicant 
 33.20  files with the department the necessary bond, in the case of 
 33.21  household goods warehouse operators, or proof of warehouse 
 33.22  operators legal liability insurance coverage in an amount of 
 33.23  $50,000 or more, as provided for in this chapter, the department 
 33.24  shall issue the license upon payment of the license fee required 
 33.25  in this section.  A warehouse operator or household goods 
 33.26  warehouse operator to whom a license is issued shall pay a fee 
 33.27  as follows:  
 33.28          Building square footage used for public storage 
 33.29              (1) 5,000 or less                $100 $110
 33.30              (2) 5,001 to 10,000              $200 $220
 33.31              (3) 10,001 to 20,000             $300 $330
 33.32              (4) 20,001 to 100,000            $400 $440
 33.33              (5) 100,001 to 200,000           $500 $550
 33.34              (6) over 200,000                 $600 $660
 33.35     A penalty amount not to exceed ten percent of the fees due 
 33.36  may be imposed by the commissioner for each month for which the 
 34.1   fees are delinquent. 
 34.2      Fees collected under this chapter must be paid into the 
 34.3   grain buyers and storage account established in section 232.22. 
 34.4      The license must be renewed annually on or before July 1, 
 34.5   and always upon payment of the full license fee required in this 
 34.6   section.  No license shall be issued for any portion of a year 
 34.7   for less than the full amount of the license fee required in 
 34.8   this section.  Each license obtained under this chapter must be 
 34.9   publicly displayed in the main office of the place of business 
 34.10  of the warehouse operator or household goods warehouse operator 
 34.11  to whom it is issued.  The license authorizes the warehouse 
 34.12  operator or household goods warehouse operator to carry on the 
 34.13  business of warehousing only in the one city or town named in 
 34.14  the application and in the buildings therein described.  The 
 34.15  department, without requiring an additional bond and license, 
 34.16  may issue permits from time to time to any warehouse operator 
 34.17  already duly licensed under the provisions of this chapter to 
 34.18  operate an additional warehouse in the same city or town for 
 34.19  which the original license was issued during the term thereof, 
 34.20  upon the filing an application for a permit in the form 
 34.21  prescribed by the department. 
 34.22     A license may be refused for good cause shown and revoked 
 34.23  by the department for violation of law or of any rule adopted by 
 34.24  the department, upon notice and after hearing. 
 34.25     Sec. 43.  Minnesota Statutes 2002, section 232.22, 
 34.26  subdivision 3, is amended to read: 
 34.27     Subd. 3.  [FEES; GRAIN BUYERS AND STORAGE ACCOUNT.] (a) 
 34.28  There is created in the agricultural fund an account known as 
 34.29  the grain buyers and storage account.  The commissioner shall 
 34.30  set the fees for inspections, certifications and licenses under 
 34.31  sections 232.20 to 232.25 at levels necessary to pay the costs 
 34.32  of administering and enforcing sections 232.20 to 232.25.  All 
 34.33  money collected pursuant to sections 232.20 to 232.25 and 
 34.34  chapters 233 and 236 shall must be paid by the commissioner into 
 34.35  the state treasury and credited to the grain buyers and storage 
 34.36  account and is appropriated to the commissioner for the 
 35.1   administration and enforcement of sections 232.20 to 232.25 and 
 35.2   chapters 233 and 236.  All money collected pursuant to chapter 
 35.3   231 shall be paid by the commissioner into the grain buyers and 
 35.4   storage account and is appropriated to the commissioner for the 
 35.5   administration and enforcement of chapter 231.  
 35.6      (b) The fees for a license to store grain are as described 
 35.7   in paragraphs (c) to (f). 
 35.8      (c) For a license to store grain, the license fee is $110 
 35.9   for each home rule charter or statutory city or town in which a 
 35.10  public grain warehouse is operated. 
 35.11     (d) A person with a license to store grain in a public 
 35.12  grain warehouse is subject to an examination fee for each 
 35.13  licensed location, based on the following schedule for one 
 35.14  examination: 
 35.15          Bushel Capacity                 Examination Fee
 35.16       Less than 150,001                       $300
 35.17       150,001 to 250,000                      $425
 35.18       250,001 to 500,000                      $545
 35.19       500,001 to 750,000                      $700
 35.20       750,001 to 1,000,000                    $865
 35.21       1,000,001 to 1,200,000                  $1,040
 35.22       1,200,001 to 1,500,000                  $1,205
 35.23       1,500,001 to 2,000,000                  $1,380
 35.24       More than 2,000,000                     $1,555
 35.25     (e) The fee for the second examination is $55 per hour per 
 35.26  examiner for warehouse operators who choose to have the 
 35.27  examination performed by the commissioner. 
 35.28     (f) A penalty amount not to exceed ten percent of the fees 
 35.29  due may be imposed by the commissioner for each month for which 
 35.30  the fees are delinquent. 
 35.31     Sec. 44.  Minnesota Statutes 2002, section 236.02, 
 35.32  subdivision 4, is amended to read: 
 35.33     Subd. 4.  [FEES.] The license fee must be set by the 
 35.34  commissioner in an amount sufficient to cover the costs of 
 35.35  administering and enforcing this chapter.  The license fee is 
 35.36  $140 for each home rule charter or statutory city or town in 
 36.1   which a private grain warehouse is operated and which will be 
 36.2   used to operate a grain bank.  A penalty amount not to exceed 
 36.3   ten percent of the fees due may be imposed by the commissioner 
 36.4   for each month for which the fees are delinquent.  Fees 
 36.5   collected under this chapter must be paid into the grain buyers 
 36.6   and storage account established in section 232.22. 
 36.7      Sec. 45.  Minnesota Statutes 2002, section 561.19, 
 36.8   subdivision 2, is amended to read: 
 36.9      Subd. 2.  [AGRICULTURAL OPERATION NOT A NUISANCE.] (a) For 
 36.10  purposes of this subdivision, the term "generally accepted 
 36.11  agricultural practices" means those practices commonly used by 
 36.12  other farmers in the county and contiguous area in which a 
 36.13  nuisance claim is asserted. 
 36.14     (b) An agricultural operation is not and shall not become a 
 36.15  private or public nuisance after two years from its established 
 36.16  date of operation if the operation was not a nuisance at its 
 36.17  established date of as a matter of law if the operation: 
 36.18     (1) is located in an agriculturally zoned area; 
 36.19     (2) complies with the provisions of all applicable federal, 
 36.20  state, or county laws, regulations, rules, and ordinances and 
 36.21  any permits issued for the agricultural operation; and 
 36.22     (3) operates according to generally accepted agricultural 
 36.23  practices.  
 36.24     (b) An agricultural operation is operating according to 
 36.25  generally accepted agricultural practices if it is located in an 
 36.26  agriculturally zoned area and complies with the provisions of 
 36.27  all applicable federal and state statutes and rules or any 
 36.28  issued permits for the operation. 
 36.29     (c) The operation of an agricultural operation in 
 36.30  compliance with the requirements of paragraph (b) constitutes an 
 36.31  affirmative defense to a private or public nuisance claim 
 36.32  against the agricultural operation. 
 36.33     (d) The provisions of this subdivision do not apply:  
 36.34     (1) to a condition or injury which results from the 
 36.35  negligent or improper operation of an agricultural operation or 
 36.36  from operations contrary to commonly accepted agricultural 
 37.1   practices or to applicable state or local laws, ordinances, 
 37.2   rules, or permits; 
 37.3      (2) when an agricultural operation causes injury or direct 
 37.4   threat of injury to the health or safety of any person; 
 37.5      (3) to the pollution of, or change in the condition of, the 
 37.6   waters of the state or the overflow of waters on the lands of 
 37.7   any person; 
 37.8      (4) to an animal feedlot facility with a swine capacity of 
 37.9   1,000 or more animal units as defined in the rules of the 
 37.10  Pollution Control Agency for control of pollution from animal 
 37.11  feedlots, or a cattle capacity of 2,500 animals or more; or 
 37.12     (5) (2) to any prosecution for the crime of public nuisance 
 37.13  as provided in section 609.74 or to an action by a public 
 37.14  authority to abate a particular condition which is a public 
 37.15  nuisance, or 
 37.16     (3) to any enforcement action brought by a local unit of 
 37.17  government related to zoning under chapter 394 or 462. 
 37.18     Sec. 46.  [609.599] [EXPOSING DOMESTIC ANIMALS TO DISEASE.] 
 37.19     Subdivision 1.  [GROSS MISDEMEANOR.] (a) A person who 
 37.20  intentionally exposes a domestic animal to an animal disease 
 37.21  contrary to reasonable veterinary practice, or intentionally 
 37.22  puts a domestic animal at risk of quarantine or destruction by 
 37.23  actions contrary to reasonable veterinary practice, is guilty of 
 37.24  a gross misdemeanor. 
 37.25     (b) The provisions of paragraph (a) do not apply to a 
 37.26  person performing academic or industry research on domestic 
 37.27  animals under protocols approved by an institutional animal care 
 37.28  and use committee. 
 37.29     Subd. 2.  [CIVIL LIABILITY.] A person who violates 
 37.30  subdivision 1 is liable in a civil action for damages in an 
 37.31  amount three times the value of any domestic animal destroyed 
 37.32  because it has the disease, has been exposed to the disease 
 37.33  agent, or is at high risk of being exposed to the disease agent 
 37.34  because of proximity to diseased animals.  
 37.35     Subd. 3.  [DEFINITION.] For purposes of this section, 
 37.36  "domestic animal" means: 
 38.1      (1) those species of animals that live under the husbandry 
 38.2   of humans; 
 38.3      (2) livestock within the meaning of section 35.01, 
 38.4   subdivision 3; 
 38.5      (3) a farm-raised deer, farm-raised game bird, or 
 38.6   farm-raised fish; or 
 38.7      (4) an animal listed as a domestic animal by a rule adopted 
 38.8   by the Department of Agriculture. 
 38.9      Sec. 47.  Minnesota Statutes 2002, section 609.605, 
 38.10  subdivision 1, is amended to read: 
 38.11     Subdivision 1.  [MISDEMEANOR.] (a) The following terms have 
 38.12  the meanings given them for purposes of this section. 
 38.13     (i) "Premises" means real property and any appurtenant 
 38.14  building or structure. 
 38.15     (ii) "Dwelling" means the building or part of a building 
 38.16  used by an individual as a place of residence on either a 
 38.17  full-time or a part-time basis.  A dwelling may be part of a 
 38.18  multidwelling or multipurpose building, or a manufactured home 
 38.19  as defined in section 168.011, subdivision 8. 
 38.20     (iii) "Construction site" means the site of the 
 38.21  construction, alteration, painting, or repair of a building or 
 38.22  structure. 
 38.23     (iv) "Owner or lawful possessor," as used in paragraph (b), 
 38.24  clause (9), means the person on whose behalf a building or 
 38.25  dwelling is being constructed, altered, painted, or repaired and 
 38.26  the general contractor or subcontractor engaged in that work. 
 38.27     (v) "Posted," as used in clause (9), means the placement of 
 38.28  a sign at least 11 inches square in a conspicuous place on the 
 38.29  exterior of the building that is under construction, alteration, 
 38.30  or repair, and additional signs in at least two conspicuous 
 38.31  places for each ten acres being protected.  The sign must carry 
 38.32  an appropriate notice and the name of the person giving the 
 38.33  notice, followed by the word "owner" if the person giving the 
 38.34  notice is the holder of legal title to the land on which the 
 38.35  construction site is located or by the word "occupant" if the 
 38.36  person giving the notice is not the holder of legal title but is 
 39.1   a lawful occupant of the land. 
 39.2      (vi) "Business licensee," as used in paragraph (b), clause 
 39.3   (9), includes a representative of a building trades labor or 
 39.4   management organization. 
 39.5      (vii) "Building" has the meaning given in section 609.581, 
 39.6   subdivision 2. 
 39.7      (b) A person is guilty of a misdemeanor if the person 
 39.8   intentionally: 
 39.9      (1) permits domestic animals or fowls under the actor's 
 39.10  control to go on the land of another within a city; 
 39.11     (2) interferes unlawfully with a monument, sign, or pointer 
 39.12  erected or marked to designate a point of a boundary, line or a 
 39.13  political subdivision, or of a tract of land; 
 39.14     (3) trespasses on the premises of another and, without 
 39.15  claim of right, refuses to depart from the premises on demand of 
 39.16  the lawful possessor; 
 39.17     (4) occupies or enters the dwelling or locked or posted 
 39.18  building of another, without claim of right or consent of the 
 39.19  owner or the consent of one who has the right to give consent, 
 39.20  except in an emergency situation; 
 39.21     (5) enters the premises of another with intent to take or 
 39.22  injure any fruit, fruit trees, or vegetables growing on the 
 39.23  premises, without the permission of the owner or occupant; 
 39.24     (6) enters or is found on the premises of a public or 
 39.25  private cemetery without authorization during hours the cemetery 
 39.26  is posted as closed to the public; 
 39.27     (7) returns to the property of another with the intent to 
 39.28  abuse, disturb, or cause distress in or threaten another, after 
 39.29  being told to leave the property and not to return, if the actor 
 39.30  is without claim of right to the property or consent of one with 
 39.31  authority to consent; 
 39.32     (8) returns to the property of another within 30 days after 
 39.33  being told to leave the property and not to return, if the actor 
 39.34  is without claim of right to the property or consent of one with 
 39.35  authority to consent; or 
 39.36     (9) enters the locked or posted construction site or 
 40.1   aggregate mining site of another without the consent of the 
 40.2   owner or lawful possessor, unless the person is a business 
 40.3   licensee. 
 40.4      Sec. 48.  Minnesota Statutes 2002, section 609.605, is 
 40.5   amended by adding a subdivision to read: 
 40.6      Subd. 5.  [CERTAIN TRESPASS ON AGRICULTURAL LAND.] (a) A 
 40.7   person is guilty of a gross misdemeanor if the person enters the 
 40.8   posted premises of another on which cattle, bison, sheep, goats, 
 40.9   swine, horses, poultry, farmed cervidae, farmed ratitae, 
 40.10  aquaculture stock, or other species of domestic animals for 
 40.11  commercial production are kept, without the consent of the owner 
 40.12  or lawful occupant of the land. 
 40.13     (b) "Domestic animal," for purposes of this section, has 
 40.14  the meaning given in section 609.599. 
 40.15     (c) "Posted," as used in paragraph (a), means the placement 
 40.16  of a sign at least 11 inches square in a conspicuous place at 
 40.17  each roadway entry to the premises.  The sign must provide 
 40.18  notice of a bio-security area and wording such as:  
 40.19  "Bio-security measures are in force.  No entrance beyond this 
 40.20  point without authorization."  The sign may also contain a 
 40.21  telephone number or a location for obtaining such authorization. 
 40.22     (d) The provisions of this subdivision do not apply to 
 40.23  employees or agents of the state or county when serving in a 
 40.24  regulatory capacity and conducting an inspection on posted 
 40.25  premises where domestic animals are kept. 
 40.26     Sec. 49.  [DELAYED PAYMENTS IN 2003.] 
 40.27     Not later than 60 days after the effective date this 
 40.28  section, the commissioner of agriculture shall pay any producer 
 40.29  denied payment for failure to meet the ownership and reporting 
 40.30  requirements imposed by Laws 2003, chapter 128, article 3, 
 40.31  section 38, the amount to which the producer would have been 
 40.32  otherwise entitled. 
 40.33     Sec. 50.  [TRANSFER OF FUNDS; DEPOSIT OF REPAYMENTS.] 
 40.34     The remaining balances in the revolving accounts in 
 40.35  Minnesota Statutes, sections 41B.046 and 41B.049, and in Laws 
 40.36  1988, chapter 688, article 21, section 7, subdivision 1, that 
 41.1   are dedicated to rural finance authority loan programs under 
 41.2   those sections, are transferred to the revolving loan account 
 41.3   established in Minnesota Statutes, section 41B.06, on the 
 41.4   effective date of this section.  All future receipts from 
 41.5   value-added agricultural product loans and methane digester 
 41.6   loans originated under Minnesota Statutes, sections 41B.046 and 
 41.7   41B.049, must be deposited in the revolving loan account 
 41.8   established in Minnesota Statutes, section 41B.06. 
 41.9      Sec. 51.  [REPEALER.] 
 41.10     Minnesota Statutes 2002, sections 18C.433; 38.02, 
 41.11  subdivision 2; 38.13; and 41B.046, subdivision 3, are repealed. 
 41.12     Sec. 52.  [EFFECTIVE DATE.] 
 41.13     (a) Except as otherwise specified, this act is effective 
 41.14  the day following final enactment. 
 41.15     (b) Section 46, subdivisions 1 and 3, and section 48 are 
 41.16  effective August 1, 2004, for offenses committed on or after 
 41.17  that date. 
 41.18     (c) Section 46, subdivisions 2 and 3, are effective August 
 41.19  1, 2004, for causes of action arising on or after that date.